/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/110816.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, August 16, 2011, Vol. 15, No. 226 Headlines 217 BEACH: Voluntary Chapter 11 Case Summary 3900 BISCAYNE: Has Interim OK to Access BB&T's Cash Collateral 7240 SHAWNEE MISSION: Case Summary & Creditors List 9CH LLC: Case Summary & Largest Unsecured Creditor ABCLD HOLDINGS: Combined Plan Hearing Set for Sept. 19 ABCLD HOLDINGS: Sec. 341 Creditors' Meeting Set for Aug. 25 ACCENTIA BIOPHARMA: Incurs $3.7-Mil. Net Loss in June 30 Quarter ALLEN CAPITAL: Allen, RSAI Has Until Oct. 21 to File Amended Plan ALLY FINANCIAL: Files Form 10-Q, Posts $113MM Net Income in Q2 AMERICA'S SUPPLIERS: Incurs $220,000 Net Loss in Second Quarter AMERICAN MEDIA: No Longer for Sale; Owners Dismiss Apollo Bid AMR CORP: Takes Next Step in Eagle Spin-Off by Filing Form 10 AMR CORP: Quek Chan Discloses 7.3% Equity Stake ANCHOR BANCORP: Three Directors Elected at Annual Meeting ANDERSON NEWS: Balks at Creditors' $75-Mil. Claims vs. Insiders APPLETON PAPERS: Incurs $3.3 Million Net Loss in July 3 Quarter APPLIED DNA: Incurs $2.1 Million Net Loss in June 30 Quarter ARCHBROOK LAGUNA: Court Approves PWC as Accounting Consultants ARCHBROOK LAGUNA: Garden City Approved as Administrative Agent ARCHBROOK LAGUNA: Court Adjusts Macquarie Advisory Fees ATI ACQUISITION: Moody's Keeps 'Caa2' After Papers Revoked AURA SYSTEMS: President Leaves to Pursue Other Interests AURASOUND INC: Amends March 31 Form 10-Q After SEC's Comments AVISTAR COMMUNICATIONS: Files Form 10-Q, Incurs $2.2-Mil. Q2 Loss AXESSTEL INC: Incurs $687,000 Net Loss in Second Quarter BAMACHEX INC: Files for Chapter 11 Bankruptcy Protection BAMACHEX INC: Voluntary Chapter 11 Case Summary BANK OF GRANITE: Incurs $3.4 Million Net Loss in Second Quarter BIOJECT MEDICAL: Posts $274,000 Net Income in Second Quarter BIOLASE TECHNOLOGY: Incurs $753,000 Net Loss in Second Quarter BIOLASE TECHNOLOGY: Board OKs 2MM Shares Stock Repurchase Program BIOLASE TECHNOLOGY: Fulfills $9-Mil. Henry Schein Purchase Order BIOLIFE SOLUTIONS: Hikes Girschweiler & Villiger Loan Facilities BMB MUNAI: To Delist from NYSE Amex After Emir Oil Sale BRAND MANAGEMENT: Files List of Six Largest Unsecured Creditors CAESARS ENTERTAINMENT: Incurs $153.1-Mil. 2nd Quarter Net Loss CAPITOL BANCORP: Incurs $17.5 Million Net Loss in Second Quarter CAPSTONE TURBINE: Posts $2.9 Million Net Loss in Q1 Ended June 30 CARGO TRANSPORTATION: Committee Taps Hill Ward as Counsel CCB INVESTORS: Case Summary & 9 Largest Unsecured Creditors CELL THERAPEUTICS: Settles Lash Litigation for $11 Million CENTRAL FALLS, R.I.: Other Local Govts. Awaiting Pension Ruling CENTRAL FALLS, R.I.: Receiver Wants Exit Plan in a Month CENTRAL PACIFIC FINANCIAL: Reports $8.2MM Income in 2nd Quarter CHELSEA 17: Case Summary & 5 Largest Unsecured Creditors CINRAM INT'L: Credit Amendment Falls Short of Lasting Relief CLAIRE'S STORES: To Report 7.3% Hike in Second Quarter Sales CLEARWIRE CORP: Promotes Erik Prusch to President and CEO COLONIAL BANCGROUP: Execs, Investors Settle Fraud Suit for $10.5MM COMSTOCK MINING: Incurs $4.7-Mil. Second Quarter Net Loss COMSTOCK MINING: Winfiled Group OKs Registration Filing Extension CONTECH CONSTRUCTION: Bank Debt Trades at 23% Off CORD BLOOD: Incurs $1 Million Net Loss in Second Quarter CORDIA IP: Case Summary & 20 Largest Unsecured Creditors COUGAR OIL: Posts C$1.5 Million Net Loss in 2nd Quarter CROSS BORDER: Stark Quits as CFO; Ex-TXCO Stephenson Takes Over CROWN EQUITY: Reports $1.5 Million Net Income in 2nd Quarter CROWNROCK: Moody's Assigns Caa2 Rating to $150MM Notes Offering CUI GLOBAL: Incurs $327,000 Net Loss in Second Quarter CUMULUS MEDIA: Stephen Schwarzman Owns 9.2% of Class A Shares CURSTIS NELSON: Creditors Oppose Plan, Debt Discharge DAEWOO MOTOR: Ariz. Court Rules in Lawsuit v. Korean Parent DAIS ANALYTIC: Reports $791,000 Net Income in Second Quarter DELTA PETROLEUM: To Hold "Say on Pay Vote" Annually DEX MEDIA WEST: Bank Debt Trades at 22% Off in Secondary Market DIABETES AMERICA: Taps Woodrock & Co. as Investment Banker DINEEQUITY INC: Bank Debt Trades at 4% Off in Secondary Market DREIER LLP: Committee Seeks Invoice Payments from 3 More Clients DULCES ARBOR: Court OKs Renterial for Maple Issues E-DEBIT GLOBAL: Inks Pact to Roll Out Mobile Payment Platforms EDGEWORTH PROPERTIES: Case Summary & 8 Largest Unsecured Creditors ENTECH SOLAR: Posts $2.4 Million Net Loss in 2nd Quarter EQUIPMENT MANAGEMENT: Electro Rent to Buy Assets for $11.1-Mil. EVERGREEN SOLAR: Files for Chapter 11 to Sell Assets FIREKEEPERS DEV'T: Moody's Affirms B2 Corporate; Outlook Positive FORMATECH, INC.: Voluntary Chapter 11 Case Summary FREEMAN PROPERTIES: Case Summary & Unsecured Creditor FUSION TELECOMMUNICATIONS: Borrows $270,000 from Marvin Rosen GALP CNA: Affiliate Wentwood Rollingbrook's Ch. 11 Case Dismissed GAMETECH INT'L: Common Stock Stops Trading on Nasdaq GENERAL MARITIME: F. Johnson stake Down to "Less Than 1%" GENERAL MARITIME: OCM Marine Discloses 16.6% Equity Stake GENTA INC: Has $11-Mil. Q2 Net Loss, May Run Out of Cash in Q3 GEORGE W. PARK: Court Closes Case; Orders Trustee Fees Be Paid GIORDANO'S ENTERPRISES: Lender Seeks to Block Ex-Owner's Lawsuit GLAZIER GROUP: Committee Has Nod for FTI as Financial Advisor GLOBAL FOOD: Posts $899,200 Net Loss in Second Quarter GOB WP: Case Summary & 5 Largest Unsecured Creditors GRAPHIC PACKAGING: Bank Debt Trades at 3% Off in Secondary Market GRAYMARK HEALTHCARE: Incurs $600,000 Net Loss in Second Quarter GREEN BUILDERS: Case Summary & 20 Largest Unsecured Creditors GREEN ENDEAVORS: Incurs $105,000 Net Loss in Second Quarter GREEN PLANET: ACE Now Holds 5.6% of Outstanding Common Shares GRUBB & ELLIS: Completes Sale of Daymark to IUC-SOV GSI GROUP: Second Quarter Revenue Up 18% to $85.7 Million HALIFAX REGIONAL: Moody's Affirms Bond Rating at 'Ba3' HAMP HAVEN: Case Summary & 20 Largest Unsecured Creditors HARRY & DAVID: Expects to Emerge From Bankruptcy in Coming Weeks HAWAII MEDICAL: Dianne Okumura Approved as Patient Care Ombudsman HAWKER BEECHCRAFT: Issues RSUs to Named Executive Officers HCA HOLDINGS: Bank Debt Trades at 5% Off in Secondary Market HOLDINGS GAMING: Hiked by Moody's to 'Caa2' on Improved Liquidity HORNE INTERNATIONAL: Reports $739,000 Net Income in 2nd Quarter HOSPITAL DAMAS: Settles PRHS Claim for $356,000 HRD CORPORATION: Web of Lawsuit Prompted Chapter 11 Filing HUDSON HEALTHCARE: To Sell Hoboken Medical to Bayonne Owner IA GLOBAL: Delays Form 10-K Due as Japanese Units Audit Pending INDEPENDENCE TAX: Incurs $4.6-Mil. Net Loss in June 30 Quarter INNOLOG HOLDINGS: Delays Filing of Quarterly Report on Form 10-Q INTERNATIONAL TEXTILE: Incurs $13.8 Million Net Loss in Q2 INTERTAPE POLYMER: Reports $3.8-Mil. Net Earnings in 2nd Qtr. ISTAR FINANCIAL: To Conduct Annual "Say on Pay Vote" ISTAR FINANCIAL: Barry Ridings Elected to Board of Directors J.A.R.A., INC.: Case Summary & 2 Largest Unsecured Creditors JEFFERSON, AL: Pushes Toward Deal Over $3.2-Bil. Bond Debt JOJO'S PARTNERS: Case Summary & 20 Largest Unsecured Creditors JOSEPH GROUP: Case Summary & 20 Largest Unsecured Creditors KENTS MUFFLER: Voluntary Chapter 11 Case Summary KV PHARMACEUTICAL: Completes Sale of Divested Assets to Zydus LIBERTY STATE: N.J. Attorney General Wants Case Dismissed LIQUIDMETAL TECHNOLOGIES: Posts $2.9-Mil. Income in 2nd Quarter LOCAL INSIGHT: Files Plan of Reorganization; Sees Q4 Exit LOS ANGELES DODGERS: Committee Taps Pinckney Harris as Counsel LOS ANGELES DODGERS: Wants Schedules Deadline Moved to Aug. 26 MAYSVILLE, INC.: Case Summary & 20 Largest Unsecured Creditors MCCLATCHY CO: Bestinver Gestion Holds 4.90% of Class A Shares MERCANTILE BANCORP: Lee Keith Appointed Interim President and CEO MERRITT AND WALDING: Files List of 18 Largest Unsecured Creditors MGI, LLC: Voluntary Chapter 11 Case Summary MIAMI-DADE COUNTY: Moody's Reviews B3 Rtng for Possible Upgrade MICHAELS STORES: Bank Debt Trades at 7% Off in Secondary Market MIN PARK: Voluntary Chapter 11 Case Summary MT. ZION: PNC Bank Objects to Second Amended Plan MWM CARVER: Can Use Fannie Mae Cash Collateral Until Aug. 31 NANCE PROPERTIES: Case Summary & 20 Largest Unsecured Creditors NCO GROUP: S. Leckerman to Quit; J. Jones Assumes EVP & COO Roles NEBRASKA BOOK: Alan G. Siemek Resigns as CFO of NBC's Subsidiaries NEBRASKA BOOK: Committee Taps Steven & Lee as Co-Counsel NET TALK.COM: Buys $2.7MM Office Building from Core Development NEUROLOGIX INC: Incurs Roughly $3-Mil. Net Loss in Second Quarter NEW BERN RIVERFRONT: 3rd Party Suit v. McKim Survives Dismiss Bid NEXSTAR BROADCASTING: Incurs $2.6-Mil. Net Loss in 2nd Quarter O&G LEASING: First Security to Present Plan Disclosures Sept. 20 O&G LEASING: First Security Proposes SolstenXP-Led Sale Process OCEAN PLACE: Taps CB Richard as Real Estate Appraiser ONTEORA ASSOCIATES: Loses Bid to Recover Foreclosed Asset OTTER TAIL: Chapter 11 Plan of Liquidation Confirmed OXIGENE INC: Incurs $2.9 Million Net Loss in Second Quarter PACESETTER FABRICS: Trustee Wants RHD to Waive Prepetition Claim PACIFIC ENERGY: Miller Overvalued Alaskan Assets, Investor Says PADULA MASONRY: Case Summary & 19 Largest Unsecured Creditors PALM HARBOR: Disclosure Statement Hearing Set for Sept. 13 PARAMOUNT LIMITED: Has Until Aug. 26 to File Financial Statements PECAN SQUARE: Hires The Law Office of Illyssa I. Fogel as Counsel PETTERS COMPANY: Chapter 11 Trustee Taps Cooperstein and Haynes PHARMOS CORP: Posts $500,400 Net Loss in 2nd Quarter PHILADELPHIA ORCHESTRA: Taps Luken & Wolf as Real Estate Appraiser PHYSICAL PROPERTY: Incurs HK$119,000 Net Loss in Second Quarter PIEDMONT CENTER: Case Summary & 20 Largest Unsecured Creditors POWER EFFICIENCY: John Lackland Resigns from All Positions PROFESSIONAL VETERINARY: Seeks to Avoid Transfers to DVM PUBLIC MEDIA: Hires Salzwedel for Investor Relations Services QUANTUM CORP: FMR LLC Discloses 10.07% Equity Stake QUEPASA CORP: Incurs $2.3 Million Net Loss in Second Quarter RADIO ONE: Reports $101.2 Million Net Income in Second Quarter REAL ESTATE: Sells Investment Properties to Orlean Company REAL MEX RESTAURANTS: Delays Filing of Quarterly Report REDDY ICE: Incurs $1.9 Million Net Loss in Second Quarter REOSTAR ENERGY: Unsecureds to Get Pro Rata Share of 20% Over Time RIO GRANDE: Voluntary Chapter 11 Case Summary RIVER ROCK: Enters Into $9-Mil. Temporary Vehicle Access Easement ROBB & STUCKY: Wants Settlement and Release Deal with Lender OK'd ROBERTS LAND: Files List of Six Largest Unsecured Creditors ROTECH HEALTHCARE: Incurs $1.9-Mil. Net Loss in Second Quarter SANUWAVE HEALTH: Incurs $3.5 Million Net Loss in Second Quarter SAWMILL GATEHOUSE: Case Summary & 11 Largest Unsecured Creditors SCOTTO RESTAURANT: Involuntary Chapter 11 Case Summary SEAWALK INVESTMENTS: Voluntary Chapter 11 Case Summary SOUTHERN ELECTRIC: Case Summary & 20 Largest Unsecured Creditors SUMMIT III: Case Summary & 17 Largest Unsecured Creditors SUNDERLAGE RESOURCE: Case Summary & 20 Largest Unsecured Creditors SUNNYVALE BUSINESS: Case Summary & 9 Largest Unsecured Creditors TEXAS ROADRUNNER: Case Summary & 19 Largest Unsecured Creditors TOWN & RANCH: Case Summary & 20 Largest Unsecured Creditors VITAMINSPICE: Creditors Want Management Removed WILSON FAMILY: Case Summary & 18 Largest Unsecured Creditors WOLFGANG DAIRY: Case Summary & 11 Largest Unsecured Creditors * Oaktree Capital Activates Distressed-Debt Fund * Large Companies With Insolvent Balance Sheets ********* 217 BEACH: Voluntary Chapter 11 Case Summary -------------------------------------------- Debtor: 217 Beach City Road, LLC 13 Singleton Beach Place Hilton Head Island, SC 29928 Bankruptcy Case No.: 11-05014 Chapter 11 Petition Date: August 11, 2011 Court: U.S. Bankruptcy Court District of South Carolina (Charleston) Judge: John E. Waites Debtor's Counsel: Michael W. Mogil, Esq. LAW OFFICE OF MICHAEL W. MOGIL, P.A. 2 Corpus Christie Place, Suite 303 Hilton Head Island, SC 29928 Tel: (843) 785-8110 Fax: (843) 785-9676 E-mail: mwmogil@aol.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The list of unsecured creditors filed together with its petition does not contain any entry. The petition was signed by Edward Flynn, managing member. 3900 BISCAYNE: Has Interim OK to Access BB&T's Cash Collateral -------------------------------------------------------------- The Hon. A. Jay Cristol of the U.S. Bankruptcy Court for the Southern District of Florida authorized, on an interim basis, 3900 Biscayne, LLC to use the cash collateral of Branch Banking and Trust Company. The Debtor is authorized to use rents from mortgage property to pay the ordinary course of its business until Aug. 22, 2011, provided that the Debtor timely tenders the required monthly payments to BB&T. Notwithstanding, however, the Debtor will not make any payments for the line item titled "Phase II Tenant Build- Out ($55,000 in total)" without prior notice and written approval by or on behalf of BB&T. Moreover, no payments will exceed the line items on the budget by an amount exceeding 5% of each such line item. As adequate protection for any diminution in value of the collateral, the Debtor will grant BB&T will receive replacement liens against all of the Debtor's assets, to the same priority, validity and extent that BB&T held prepetition. As additional adequate protection, the Debtor will make monthly payments to BB&T of interest only on the A Note principal of $10,800,000 at the annual rate of 2.7%. About 3900 Biscayne 3900 Biscayne, LLC, is a Florida limited liability company which owns real property located at 3900 Biscayne, in Miami, currently leased to Miami Arts, Inc., a tuition-free public charter school offering college-preparatory academic curriculum and conservatory- style training in the visual and performing arts. The Company filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 11-22948) on May 12, 2011, in Miami, Florida. Judge A. Jay Cristol presides over the case. James C. Moon, Esq., and Peter D. Russin, Esq., at Meland Russin & Budwick, P.A., in Miami, represent the Debtor in its Chapter 11 effort. The Debtor disclosed $14,857,484 in total assets and $13,691,533 in total liabilities as of the Chapter 11 filing. To date, the U.S. Trustee has not appointed an official committee of unsecured creditors in the Debtor's case. 7240 SHAWNEE MISSION: Case Summary & Creditors List --------------------------------------------------- Debtor: 7240 Shawnee Mission Holding, LLC 7240 Shawnee Mission Parkway Mission, KS 66202 Bankruptcy Case No.: 11-22475 Chapter 11 Petition Date: August 11, 2011 Court: U.S. Bankruptcy Court District of Kansas (Kansas City) Judge: Dale L. Somers Debtor's Counsel: Erlene W. Krigel, Esq. KRIGEL & KRIGEL 4550 Belleview Kansas City, MO 64111 E-mail: ekrigel@krigelandkrigel.com Scheduled Assets: $2,900,000 Scheduled Debts: $5,014,092 The petition was signed by Shazia Memon, member. Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- 7240 Shawnee Mission Hospitality LLC 11-22479 08/11/11 Scheduled Assets: $137,760 Scheduled Debts: $5,188,956 A list of 7240 Shawnee Mission Holding's Eight largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ksb11-22475.pdf A list of 7240 Shawnee Mission Hospitality's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ksb11-22479.pdf The petitions were signed by Shazia Memon, member. 9CH LLC: Case Summary & Largest Unsecured Creditor -------------------------------------------------- Debtor: 9CH, LLC 5506 Walsh Lane, Suite 206 Rogers, AR 72758 Bankruptcy Case No.: 11-73713 Chapter 11 Petition Date: August 12, 2011 Court: United States Bankruptcy Court Western District of Arkansas (Fayetteville) Judge: Ben T. Barry Debtor's Counsel: Stanley V. Bond, Esq. BOND LAW OFFICE P.O. Box 1893 Fayetteville, AR 72701-1893 Tel: (479) 444-0255 Fax: (479) 444-7141 E-mail: attybond@me.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 In its list of 20 largest unsecured creditors, the Company placed only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Lowtide Holdings, LLC $1,500,000 157 E Colt Dr., Ste. 1 Fayetteville, AR 72703 The petition was signed by Bill Schwyhart, manager. ABCLD HOLDINGS: Combined Plan Hearing Set for Sept. 19 ------------------------------------------------------ The Bankruptcy Court in Dallas will hold a combined hearing on Sept. 19, 2011, at 9:15 a.m. to consider approval of the disclosure statement and solicitation and voting procedures and to confirm the prepackaged Plan of Reorganization filed by ABCLD Holdings, LLC. Dallas, Texas-based ABCLD Holdings is a Nevada limited liability company created on March 18, 2011, to acquire certain properties of FRE Real Estate Inc. All of the capital stock of ABCLD Holdings is owned by ABC Land & Development, Inc., which is a corporation owned by Ronald Akin and DTS Holdings, LLC. ABCLD purchased various properties located in Texas from FRE on March 23, 2011, for $59,800,000: (i) the Kinwest Parkway Tract -- approximately 27.97 acres of land located in the Las Colinas area of Irving, Dallas County; (ii) the Beltline Tract -- approximately 109.85 acres of land located in the Las Colinas area of Irving, Dallas County; (iii) the Mercer Crossing Tract -- approximately 235 acres of land located in the Mercer Crossing area of Irving, Dallas County; (iv) Valwood Tract -- approximately 19.43 acres of land located in the Farmers Branch area of Irving, Dallas County; (v) Pioneer Crossing Tract -- approximately 97.276 acres of land located in the Pioneer Crossing Subdivision of Austin, Travis County, Texas; and (vi) McKinney/Brauss Tract -- approximately 20.8445 acres of land located in McKinney, Collin County, Texas. The purchase amount was paid through: (i) the Debtor's assumption of the outstanding loans owed to Armed Forces Bank N.A. with respect to the Properties in the amount of $57,615,229; (ii) the Debtor's assumption of 100% of the aggregate trade debts; and (iii) the Debtor's assumption of and the assignment to the Debtor in the stead of FRE of certain notes owed to various insiders in the aggregate amount of $2,184,771, which notes arose from FRE's original acquisition of the Properties. Prior to the ABCLD deal, those properties, in addition to several other unrelated properties, had been first acquired by FRE from various affiliated entities on Dec. 23, 2010. FRE acquired the properties, all of which were distressed, in order to file one collective bankruptcy case, which FRE filed Jan. 4, 2011. In filing a consolidated bankruptcy case, upon information and belief, FRE believed that doing so would allow FRE to utilize the equity in and cash flow of the various properties, maximize value for all creditors, and provide for an efficient and streamlined bankruptcy process and allow FRE to utilize all of the properties purchased to effectively reorganize. However, FRE's secured creditors, and ultimately the Court, disagreed, and an order dismissing FRE's bankruptcy case was signed on March 1, 2011. Armed Forces Bank, as successor by merger to Bank Midwest, N.A. is the secured creditor with respect to the Properties, and AFB played an active role in obtaining the dismissal of the FRE bankruptcy proceeding. When ABCLD acquired the Properties from FRE, the various loans owed to AFB remained in default and the parties engaged in settlement discussions. On June 6, 2011, ABCLD, AFB, and a myriad of ABCLD's affiliates and other related entities executed a written settlement regarding the Properties and the AFB Loans and certain other properties owned by various of the other affiliates and the loans with respect to those properties also owed to AFB. The Agreement generally contemplates, inter alia, a foreclosure of various properties, including the Beltline Tract, the Kinwest Parkway Tract, the McKinney/Brauss Tract, and the Pioneer Crossing Tract, the preparation and filing of the Debtor's prepackaged bankruptcy case, and, upon confirmation of the Plan, a restructuring of the AFB debt. The day after the Agreement was executed, the "First Closing" occurred whereby AFB conducted foreclosure sales of the Beltline Tract, the Kinwest Parkway Tract, the McKinney/Brauss Tract, and the Pioneer Crossing Tract. The prepackaged Plan and the accompanying disclosure statement were provided to ABCLD's creditors during the solicitation process and were filed with the Court on the Petition Date. The Debtor commenced a solicitation of votes from creditors on July 1, 2011. If implemented, the Plan would generally restructure the Debtor's debt owed to Armed Forces Bank, which totals $40,000,000, and allow the Debtor to pay its secured ad valorem tax creditors over time. The Debtor does not have any other creditors, other than one affiliate who is owed $260,131 based upon the Debtor's and FRE's original purchase of the Properties. The Plan classifies claims against and interests in ABCLD in six classes. Non-Class 1 Allowed Admin and Certain Priority Claims were not entitled to vote on the Plan. There were no claims under Class 2 Certain Allowed Priority Claims and Class 3 Allowed Secured Tax Claims. The $40,000,000 Allowed Secured Claim of AFB in Class 4, the $260,131 Allowed Subordinated Claims of affiliate American Realty Trust Inc. in Class 5; and Class 6 Interests all voted to accept the Plan. No additional solicitation of votes on the Plan is contemplated by the Debtor. ABCLD Holdings, LLC, filed for Chapter 11 bankruptcy (Bankr. N.D. Tex. Case No. 11-34969) on Aug. 1, 2011. Judge Barbara J. Houser presides over the case. Melissa S. Hayward, Esq., at Franklin Skierski Lovall Hayward LLP, serves as bankruptcy counsel to the Debtor. In its petition, the Debtor estimated assets of $50 million to $100 million and debts of $10 million to $50 million. The petition was signed by Craig Landess, vice president. Lender Armed Forces Bank, N.A., is represented by: Keith Miles Aurzada, Esq. BRYAN CAVE LLP 2200 Ross Avenue, Suite 3300 Dallas, Texas 75201 Tel: 214-721-8041 Fax: 214-220-6741 E-mail: keith.aurzada@bryancave.com ABCLD HOLDINGS: Sec. 341 Creditors' Meeting Set for Aug. 25 ----------------------------------------------------------- The U.S. Trustee for the Northern District of Texas will convene a Meeting of creditors pursuant to 11 U.S.C. Sec. 341(a) in the bankruptcy case of ABCLD Holdings LLC on Aug. 25, 2011, at 10:15 a.m. at Dallas, Room 976. Proofs of Claim are due by Nov. 23, 2011. Dallas, Texas-based ABCLD Holdings is a Nevada limited liability company created on March 18, 2011, to acquire properties owned by FRE Real Estate Inc. in Texas for $59,800,000. All of the capital stock of ABCLD Holdings is owned by ABC Land & Development, Inc., which is a corporation owned by Ronald Akin and DTS Holdings, LLC. FRE filed for bankruptcy Jan. 4, 2011. The case was dismissed March 1, 2011. ABCLD filed for bankruptcy to implement a prepetition settlement agreement with Armed Forces Bank, as successor by merger to Bank Midwest, N.A. is the secured creditor with respect to the acquired FRE Properties. AFB played an active role in obtaining dismissal of the FRE bankruptcy proceeding. The Agreement contemplates the foreclosure of certain of the properties, a prepackaged bankruptcy filing, and the restructuring of the AFB debt. ABCLD commenced the prepackaged Chapter 11 bankruptcy (Bankr. N.D. Tex. Case No. 11-34969) on Aug. 1, 2011. Judge Barbara J. Houser presides over the case. Melissa S. Hayward, Esq., at Franklin Skierski Lovall Hayward LLP, serves as bankruptcy counsel to the Debtor. In its petition, the Debtor estimated assets of $50 million to $100 million and debts of $10 million to $50 million. The petition was signed by Craig Landess, vice president. Armed Forces Bank is represented by Keith Miles Aurzada, Esq., at Bryan Cave LLP. The Bankruptcy Court will hold a combined hearing on Sept. 19, 2011, at 9:15 a.m. to consider approval of the disclosure statement and solicitation and voting procedures and to confirm the prepackaged Plan. ACCENTIA BIOPHARMA: Incurs $3.7-Mil. Net Loss in June 30 Quarter ---------------------------------------------------------------- Accentia BioPharmaceuticals Inc. filed its quarterly report on Form 10-Q, reporting a net loss of $3.7 million on $2.1 million of revenues for the three months ended June 30, 2011, compared with net income of $11.5 million on $2.5 million of revenues for the three months ended June 30, 2010. The Company reported a net loss of $12.2 million on $6.4 million of revenues for the nine months ended June 30, 2011, compared with a net loss of on $8.3 million on $37.9 million of revenues for the nine months ended June 30, 2010. Derivative gain was $816,212 for the three months ended June 30, 2011, as compared to $14.1 million for the three months ended June 30, 2010. The Company's balance sheet at June 30, 2011, showed $6.8 million in total assets, $92.8 million in total liabilities, and a stockholders' deficit of $86.0 million. As reported in the TCR on Feb. 15, 2011, the Company's independent registered public accounting firm's report included a "going concern" uncertainty on the financial statements for the year ended Sept. 30, 2010, citing significant losses and working capital deficits at that date. A copy of the Form 10-Q is available at http://is.gd/bXA6vI About Accentia BioPharmaceuticals Headquartered in Tampa, Florida, Accentia BioPharmaceuticals Inc. (OTC QB: ABPI) -- http://www.accentia.net/-- is committed to advancing the autoimmune disease therapy, Revimmune(TM), as a comprehensive system of care and drug regimen designed for the treatment of autoimmune diseases. Revimmune therapy includes an ultra-high-dose regimen of Cytoxan(R) (cyclophosphamide), exclusively supplied via a strategic agreement with Baxter Healthcare Corporation. Clinical trials for Revimmune are being planned for the treatment of multiple autoimmune indications. Accentia holds a majority-ownership stake in Biovest International, Inc. (OTC QB: "BVTI"), an emerging leader in the field of active personalized immunotherapies. In collaboration with the National Cancer Institute, Biovest has developed a patient-specific, cancer vaccine, BiovaxID(R), with three clinical trials completed, including a Phase III study for the treatment of follicular non-Hodgkin's lymphoma. Additionally, Accentia's wholly-owned subsidiary, Analytica International, based in New York City, is a global research and strategy consulting firm that provides professional services to the pharmaceutical and biotechnology industries. Since 1997, Analytica has expertly directed research studies and projects, including traditional health economic modeling projects, database studies, structured reviews, heath technology assessments, reimbursement analyses, and value dossiers. On Nov. 10, 2008, Accentia BioPharmaceuticals, along with its subsidiaries filed for Chapter 11 protection (Bankr. M.D. Fla. Lead Case No. 08-17795). The Company emerged from Chapter 11 protection, and the Plan of Reorganization became effective, on Nov. 17, 2010. ALLEN CAPITAL: Allen, RSAI Has Until Oct. 21 to File Amended Plan ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas extended until Oct. 21, 2011, the deadline for Allen Capital Partners, LLC, and Richard S. Allen, Inc., to file an amended plan and explanatory disclosure statement. The hearing to determine the adequacy of Richard S. Allen and RSAI's disclosure statement, as amended, is set for Nov. 17, at 1:30 p.m. The exclusivity period for Allen and RSAI is extended until the date of the disclosure statement hearing, at which time the confirmation hearing will be set and the Court will consider a further extension of the Debtors' exclusivity. The Debtors have said the extension will assure that Allen and RSAI have the benefit of knowing the final outcome of the DLH and ACP Plan before proceeding with amending and pursuing approval and confirmation of their Disclosure Statement and Plan. About Allen Capital Allen Capital Partners LLC and subsidiary DLH Master Land Holding LLC, are the developers of Dallas Logistics Hub, a 6,000-acre multimodal logistics park 12 miles (19 kilometers) from downtown Dallas. Allen Capital Partners, LLC, dba The Allen Group, filed for Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 10- 30562) on Jan. 25, 2010. Mark MacDonald, Esq., at MacDonald + MacDonald, P.C., represents the Debtor. Lain, Faulkner & Co. is the Debtor's financial advisor. The Company disclosed $220,325,201 in assets and $160,622,236 in liabilities as of the Chapter 11 filing. The Debtor's affiliate -- DLH Master Land Holding, LLC, dba The Allen Group -- filed a separate Chapter 11 bankruptcy petition. Another affiliate, Visalia, California-based Richard S. Allen, Inc., filed for Chapter 11 bankruptcy protection (Bankr. N.D. Texas Case No. 10-33211) on May 3, 2010. Patrick J. Neligan, Jr., Esq., at Neligan Foley LLP, represents the Debtor. The Company disclosed $76,158,469 in assets and $53,728,982 in liabilities as of the petition date. ALLY FINANCIAL: Files Form 10-Q, Posts $113MM Net Income in Q2 -------------------------------------------------------------- Ally Financial Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting net income of $113 million on $1.82 billion of total net revenue for the three months ended June 30, 2011, compared with net income of $565 million on $2.09 billion of total net revenue for the same period during the prior year. The Company also reported net income of $259 million on $3.43 billion of total net revenue for the six months ended June 30, 2011, compared with net income of $727 million on $3.94 billion of total net revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $178.88 billion in total assets, $158.46 billion in total liabilities, and $20.42 billion in total equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/1LZuZO About Ally Financial Ally Financial Inc., formerly GMAC Inc., -- http://www.ally.com/ -- is one of the world's largest automotive financial services companies. The company offers a full suite of automotive financing products and services in key markets around the world. Ally's other business units include mortgage operations and commercial finance, and the company's subsidiary, Ally Bank, offers online retail banking products. Ally operates as a bank holding company. GMAC obtained a $17 billion bailout from the U.S. government in exchange for a 56.3% stake. Private equity firm Cerberus Capital Management LP keeps 14.9%, while General Motors Co. owns 6.7%. The Company has tapped Goldman Sachs Group Inc. and Citigroup Inc. to advise on a range of issues, including strategic alternatives for the mortgage business and repayment of taxpayer funds. * * * In January 2011, Standard & Poor's Ratings Services raised its rating on the preferred stock of Ally Financial Inc. (Ally; B/Stable/C) to 'CC' from 'C'. The ratings firm noted that Ally improved its liquidity position and alleviated some funding pressure at its holding Company in recent months, making it easier to meet obligations on its preferred stock. Nevertheless, the Company faces significant debt maturities at its holding Company in 2011 and 2012, which is reflected in the 'CC' rating. As reported by the TCR on May 6, 2011, Standard & Poor's Ratings Services raised its long-term counterparty credit ratings on both Ally Financial Inc. (formerly GMAC Inc.) and subsidiary Residential Capital LLC (ResCap) to 'B+' from 'B'. The outlook on both ratings is stable. "Ally, an automobile- and mortgage- finance and servicing company, and ResCap, its mortgage subsidiary, improved their capital, credit quality, earnings, and liquidity in recent months," said Standard & Poor's credit analyst Brendan Browne. They also settled a material portion of their mortgage repurchase risk and have been profitable. In February 2011, Moody's Investors Service upgraded the issuer and senior unsecured ratings of Ally Financial Inc. and its supported subsidiaries to B1 from B3. Concurrently, Moody's upgraded the senior secured (second lien) and senior unsecured ratings of mortgage finance subsidiary Residential Capital LLC to Caa3 and Ca, respectively, from C. The rating outlook for both Ally and ResCap is stable. Moody's said the Ally and ResCap upgrades reflect a decline in ResCap's exposure to portfolio under-performance and mortgage repurchase risks and an associated decrease in contingent risks to Ally relating to its support of ResCap. Additional factors supporting Ally's upgrade include its strengthened liquidity and capital positions and prospects for continued profitability in its core auto finance and mortgage businesses based upon positive asset quality performance trends. AMERICA'S SUPPLIERS: Incurs $220,000 Net Loss in Second Quarter --------------------------------------------------------------- America's Suppliers, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $220,752 on $4.12 million of net revenues for the three months ended June 30, 2011, compared with net income of $9,127 on $3.55 million of net revenues for the same period a year ago. The Company also reported a net loss of $347,538 on $7.42 million of net revenues for the six months ended June 30, 2011, compared with net income of $27,589 on $6.75 million of net revenues for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $1.41 million in total assets, $1.80 million in total liabilities, all current, and a $386,865 total shareholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/TAkeAq About America's Suppliers Scottsdale, Ariz.-based America's Suppliers, Inc., develops software programs that allow the Company to provide general merchandise for resale to businesses through its Web site at http://www.DollarDays.com The Company has a recent history of operating losses and operating cash outflows. "These factors raise substantial doubt about our ability to continue as a going concern," the Company said in the filing. As reported in the Troubled Company Reporter on March 26, 2010, MaloneBailey, LLP, in Houston, expressed substantial doubt about the Company's ability to continue as a going concern following the Company's 2009 results. The independent auditors noted that Company has suffered an accumulated deficit of $6,949,006 as of Dec. 31, 2009. MaloneBailey's opinion on the Company's 2010 financial statements did not include a going concern qualification. AMERICAN MEDIA: No Longer for Sale; Owners Dismiss Apollo Bid ------------------------------------------------------------- Mike Spector and Russell Adams, writing for The Wall Street Journal, report that people familiar with the matter said American Media Inc., is no longer up for sale, after the media company's owners balked at an offer from Apollo Global Management. The sources said American Media had informally explored a sale earlier this year. Some of the sources told the Journal American Media never launched a formal auction for itself. Still, earlier this year it entertained an offer from Apollo. According to the Journal, representatives for American Media and Apollo declined comment. The New York Post reported Apollo's interest in American Media in June. The Journal says people close to the matter value American Media at between $500 million and $720 million. The Journal relates interest in American Media comes as other media companies that recently emerged from bankruptcy proceedings explore sales. The Journal reported in July that Reader's Digest Association Inc. recently put itself up for sale, seeking more than $1 billion. Freedom Communications Inc., which publishes the Orange County Register, has been on the auction block for the better part of this year and has held discussions with Denver Post publisher MediaNews Group Inc. about a possible tie-up. About American Media Based in New York, American Media, Inc., publishes celebrity journalism and health and fitness magazines in the U.S. These include Star, Shape, Men's Fitness, Fit Pregnancy, Natural Health, and The National Enquirer. In addition to print properties, AMI manages 14 different Web sites. The company also owns Distribution Services, Inc., the country's #1 in-store magazine merchandising company. American Media, Inc., and 15 units, including American Media Operations, Inc., filed for Chapter 11 protection in Manhattan (Bankr. S.D.N.Y. Case No. 10-16140) on Nov. 17, 2010. Judge Martin Glenn presided over the case. Ira S. Dizengoff, Esq., Arik Preis, Esq., Meredith A. Lahaie, Esq., Stefanie L. Kurlanzik, Esq., and Kevin M. Eide, Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, in New York, served as the Debtors' bankruptcy counsel. Moelis & Company was the Debtors' financial advisors and investment bankers. Kurtzman Carson Consultants LLC was the claims and notice agent. AMI estimated assets of $0 to $50,000 and debts of $500 million to $1 billion in its Chapter 11 petition. AMO, AMI's operating unit, estimated assets of $100 million to $500 million and debts of $500 million to $1 billion in its Chapter 11 petition. American Media filed a pre-packaged Chapter 11 plan where holders of notes and bank debt would receive either cash, new notes or stock. Judge Glenn confirmed the Debtors' Amended Joint Prepackaged Plan of Reorganization on Dec. 20, 2010. The Debtors emerged from Chapter 11 reorganization two days later, handing ownership to former bondholders. The new owners include hedge funds Avenue Capital Group and Angelo Gordon & Co. AMR CORP: Takes Next Step in Eagle Spin-Off by Filing Form 10 ------------------------------------------------------------- AMR Corporation announced that its subsidiary, AMR Eagle Holding Corporation, has filed a Form 10 Registration Statement with the U.S. Securities and Exchange Commission. The Form 10 filing marks the next step in a potential spin-off of Eagle and describes the potential spin-off, provides an overview of Eagle's business, management and its ongoing relationship with American Airlines, and provides historical and pro forma consolidated financial statements of Eagle. In the spin-off, AMR Corporation would distribute to its stockholders 100 percent of the outstanding shares of Eagle on a pro rata basis, and AMR Corporation would not retain any ownership interest in Eagle. On a pro forma basis, in 2010, Eagle generated $1.2 billion in revenue with more than $250 million from ground handling services. Eagle would operate the third largest regional airline in the United States as it provides the vast majority of American's regional flight operations. Under a nine-year air services agreement with American, Eagle would initially operate 281 aircraft on behalf of American. American could withdraw from Eagle and re-bid up to 12 turbo prop aircraft per year beginning in 2012 and a specified number of jet aircraft up to 40 per year beginning in 2014. The agreement would also include a provision to re-set rates to reflect any change in market levels for regional feed after four years. Eagle would also operate one of the largest ground handling operations in the U.S., serving American Airlines and other passenger airlines at more than 100 airports in the U.S., the Bahamas, the Caribbean and Canada. Under a ground handling agreement, Eagle would provide ground handling services to American at 106 airport locations. The agreement would have an eight-year term, but provide American the right to re-bid ground handling services at a specified number of airports each year. Strategic Rationale AMR and Eagle believe a spin-off of Eagle as a separate, publicly- traded company would offer a number of benefits that would enable: * American to diversify the source of its regional feed over time * Eagle to grow its business by better competing to offer regional flight services to other mainline carriers * Market forces to ensure American has continued access to the most competitive regional flight and ground handling rates and service * Each company to allocate resources and deploy capital in a manner consistent with its strategic priorities in order to optimize total returns to shareholders * Investors to value the two companies based on their particular operational and financial characteristics "The filing of Eagle's Form 10 is an important milestone in a potential spin-off that we expect would provide significant benefits for both companies and maximize value for our shareholders," said AMR Chairman and CEO Gerard Arpey. "The spin- off would enable American over time to diversify its regional feed and to continue to procure the most competitive rates and service, while also enabling Eagle to more effectively compete for new business. We look forward to taking the next steps toward completing this process." "We're excited to take this important step toward becoming an independent airline," said Eagle President and CEO Dan Garton. "Eagle has more than 25 years of experience providing regional air service to American Airlines and we look forward to continuing that relationship for many years to come. Likewise, we are eager to compete for new business and new customers, offering growth opportunities for Eagle and our employees." While all aircraft will remain on Eagle's operating certificates, prior to any divestiture, the Company expects to transfer to American all of its jet aircraft and the associated indebtedness, on which AMR is already a guarantor. Ownership of the jet aircraft would provide American control over the regional aircraft that are pivotal to its network and would protect AMR's position as guarantor of the debt. Next Steps The spin-off of Eagle would be subject to certain conditions, including U.S. Securities and Exchange Commission clearance, receipt of regulatory approvals, an opinion from tax counsel and a favorable ruling from the Internal Revenue Service regarding the tax-free status of the spin-off to AMR shareholders, execution of inter-company agreements and approval by AMR's board of directors. Stockholder approval of the spin-off is not required. While AMR Corporation has taken this step toward a spin-off of Eagle, it could decide to retain Eagle, or the divestiture of Eagle could take another form, such as a sale. Citi and Evercore Partners are acting as financial advisors to AMR Corporation. About AMR Corporation Headquartered in Fort Worth, Texas, AMR Corporation (NYSE: AMR) operates with its principal subsidiary, American Airlines Inc. -- http://www.aa.com/-- a worldwide scheduled passenger airline. As of Dec. 31, 2009, American provided scheduled jet service to approximately 160 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two regional airlines, American Eagle Airlines Inc. and Executive Airlines Inc., and does business as "American Eagle." American Beacon Advisors Inc., a wholly owned subsidiary of AMR, is responsible for the investment and oversight of assets of AMR's U.S. employee benefit plans, as well as AMR's short-term investments. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. The Company also reported a net loss of $722 million for the six months ended June 30, 2011. The Company's balance sheet at June 30, 2011, showed $25.78 billion in total assets, $30.29 billion in total liabilities, and a $4.51 billion stockholders' deficit. * * * AMR carries a 'CCC' issuer default rating from Fitch Ratings, 'Caa1' corporate family and probability of default ratings from Moody's, and a 'B-' corporate credit rating from Standard & Poor's. In November 2010, Standard & Poor's Ratings Services revised its outlook on AMR Corp. and its major operating subsidiary, American Airlines Inc., to stable from negative, based on AMR's improved operating performance, which has bolstered credit quality. S&P also affirmed its 'B-' corporate credit rating and most issue ratings on the two companies and lowered selected ratings on American's enhanced equipment trust certificates. AMR CORP: Quek Chan Discloses 7.3% Equity Stake ----------------------------------------------- In a Schedule 13G filing with the U.S. Securities and Exchange Commission, Quek Leng Chan and his affiliates disclosed that they beneficially own 24,393,117 shares of common stock of AMR Corporation representing 7.3% of the shares outstanding assuming a total of 335,207,300 shares outstanding, based on the amounts sourced from Bloomberg as at Aug. 1, 2011. A full-text copy of the regulatory filing is available for free at http://is.gd/INv8TU About AMR Corporation Headquartered in Fort Worth, Texas, AMR Corporation (NYSE: AMR) operates with its principal subsidiary, American Airlines Inc. -- http://www.aa.com/-- a worldwide scheduled passenger airline. As of Dec. 31, 2009, American provided scheduled jet service to approximately 160 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two regional airlines, American Eagle Airlines Inc. and Executive Airlines Inc., and does business as "American Eagle." American Beacon Advisors Inc., a wholly owned subsidiary of AMR, is responsible for the investment and oversight of assets of AMR's U.S. employee benefit plans, as well as AMR's short-term investments. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. The Company also reported a net loss of $722 million for the six months ended June 30, 2011. The Company's balance sheet at June 30, 2011, showed $25.78 billion in total assets, $30.29 billion in total liabilities, and a $4.51 billion stockholders' deficit. * * * AMR carries a 'CCC' issuer default rating from Fitch Ratings, 'Caa1' corporate family and probability of default ratings from Moody's, and a 'B-' corporate credit rating from Standard & Poor's. In November 2010, Standard & Poor's Ratings Services revised its outlook on AMR Corp. and its major operating subsidiary, American Airlines Inc., to stable from negative, based on AMR's improved operating performance, which has bolstered credit quality. S&P also affirmed its 'B-' corporate credit rating and most issue ratings on the two companies and lowered selected ratings on American's enhanced equipment trust certificates. ANCHOR BANCORP: Three Directors Elected at Annual Meeting --------------------------------------------------------- Anchor BanCorp Wisconsin Inc. held its 2011 annual meeting of shareholders on Aug. 4, 2011. At this meeting, the shareholders of the Company elected three directors, each for a three-year term, namely: (1) Richard A. Bergstrom, (2) Donald D. Parker and (3) James D. Smessaert. The shareholders approved an advisory (non-binding) proposal to approve the compensation for the Company's executive officers, pursuant to the American Recovery and Reinvestment Act of 2009, as disclosed pursuant to the compensation disclosure rules of the U.S. Securities and Exchange Commission. The ARRA, requires recipients of TARP CPP funds, such as the Company, to conduct annually a separate non-binding shareholder vote to approve the compensation of executive officers. Accordingly, there was no vote solicited on the frequency of the vote for approval of compensation, since it must occur annually. Moreover, the shareholders ratified the appointment of McGladrey & Pullen LLP as the Company's independent registered public accounting firm for the fiscal year ending March 31, 2012. About Anchor Bancorp Madison, Wisconsin-based Anchor BanCorp Wisconsin Inc. is a registered savings and loan holding company incorporated under the laws of the State of Wisconsin. The Company is engaged in the savings and loan business through its wholly owned banking subsidiary, AnchorBank, fsb. The Company's balance sheet at June 30, 2011, showed $3.24 billion in total assets, $3.24 billion in total liabilities, and $4.99 million of stockholders' equity. Anchor BanCorp and its wholly-owned subsidiaries, AnchorBank fsb, each consented to the issuance of an Order to Cease and Desist by the Office of Thrift Supervision. The Corporation and the Bank continue to diligently work with their financial and professional advisors in seeking qualified sources of outside capital, and in achieving compliance with the requirements of the Orders. The Corporation and the Bank continue to consult with the successors to the OTS, Federal Reserve, the the Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation on a regular basis concerning the Corporation's and Bank's proposals to obtain outside capital and to develop action plans that will be acceptable to federal regulatory authorities, but there can be no assurance that these actions will be successful, or that even if one or more of the Corporation's and Banks proposals are accepted by the Federal regulators, that these' proposals will be successfully implemented. While the Corporation's management continues to exert maximum effort to attract new capital, significant operating losses in fiscal 2009, 2010 and 2011, significant levels of criticized assets and low levels of capital raise substantial doubt as to the Corporation's ability to continue as a going concern. If the Corporation and Bank are unable to achieve compliance with the requirements of the Orders, or implement an acceptable capital restoration plan, and if the Corporation and Bank cannot otherwise comply with those commitments and regulations, the OCC or FDIC could force a sale, liquidation or federal conservatorship or receivership of the Bank. As reported by the TCR on July 5, 2011, McGladrey & Pullen, LLP, in Madison, Wisconsin, expressed substantial doubt about Anchor Bancorp Wisconsin's ability to continue as a going concern after auditing the Company's financial results for fiscal year ended March 31, 2011. The independent auditors noted that at March 31, 2011, all of the subsidiary bank's regulatory capital amounts and ratios are below the capital levels required by the consent order. "The subsidiary bank has also suffered recurring losses from operations. Failure to meet the capital requirements exposes the Corporation to regulatory sanctions that may include restrictions on operations and growth, mandatory asset dispositions, and seizure of the subsidiary bank." ANDERSON NEWS: Balks at Creditors' $75-Mil. Claims vs. Insiders --------------------------------------------------------------- Samuel Howard at Bankruptcy Law360 reports that Anderson News LLC on Wednesday criticized creditors' attempt to pursue roughly $75 million in claims against company insiders in Delaware bankruptcy court, saying they are only trying to harass the estate over a related antitrust case. Law360 relates that the magazine creditors are not entitled to step in and assert fraudulent transfer and fiduciary-based claims on behalf of the company, and are merely clamoring for standing because the estate recently appealed the toss of an antitrust action against the creditors, according to Anderson. Anderson News LLC is a sales and marketing company for books and magazines. In March 2009, Anderson News LLC's creditors filed petitions for the Company's bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. The publishing companies claimed that Anderson News owes them a combined $37.5 million. APPLETON PAPERS: Incurs $3.3 Million Net Loss in July 3 Quarter --------------------------------------------------------------- Paperweight Development Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $3.28 million on $216.58 million of net sales for the three months ended July 3, 2011, compared with a net loss of $14.97 million on $220.78 million of net sales for the three months ended July 4, 2010. The Company also reported a net loss of $8.47 million on $434.60 million of net sales for the six months ended July 3, 2011, compared with a net loss of $22.42 million on $430.79 million of net sales for the six months ended July 4, 2010. The Company's balance sheet at July 3, 2010, showed $633.02 million in total assets, $782.05 million in total liabilities, $102.52 million in redeemable common stock, a $159.39 million in accumulated deficit, and a $92.16 million accumulated other comprehensive loss. A full-text copy of the Form 10-Q is available for free at: http://is.gd/yTVR3b About Appleton Papers Appleton Papers Inc. is a 100%-owned subsidiary of Paperweight Development Corp. Appleton Papers Inc. -- http://www.appletonideas.com/-- headquartered in Appleton, Wisconsin, produces carbonless, thermal, security and performance packaging products. Appleton has manufacturing operations in Wisconsin, Ohio, Pennsylvania, and Massachusetts, employs approximately 2,200 people and is 100% employee-owned. Appleton Papers carries a 'B' corporate credit rating from Standard & Poor's. APPLIED DNA: Incurs $2.1 Million Net Loss in June 30 Quarter ------------------------------------------------------------ Applied DNA Sciences, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $2.15 million on $229,710 of revenue for the three months ended June 30, 2011, compared with a net loss of $2.59 million on $170,195 of revenue for the same period a year ago. The Company also reported a net loss of $6.09 million on $687,970 of revenue for the nine months ended June 30, 2011, compared with a net loss of $5.79 million on $430,185 of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $893,586 in total assets, $4.86 million in total liabilities, all current, and a $3.97 million total deficiency in stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/M5TAsb About Applied DNA Stony Brook, N.Y.-based Applied DNA Sciences, Inc., is principally devoted to developing DNA embedded biotechnology security solutions in the United States. As reported in the Troubled Company Reporter on Dec. 21, 2010, RBSM LLP, in New York, expressed substantial doubt about Applied DNA Sciences' ability to continue as a going concern, after auditing the Company's financial statements for fiscal year ended Sept. 30, 2010. The independent auditors noted that the Company has suffered recurring losses and does not have significant cash or other material assets, nor does it have an established source of revenues sufficient to cover its operations. The Company reported a net loss of $7.91 million on $519,844 of sales for fiscal 2010, compared with net income of $3.94 million on $295,162 of sales for fiscal 2009. ARCHBROOK LAGUNA: Court Approves PWC as Accounting Consultants -------------------------------------------------------------- The Hon. Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New York authorized Archbrook Laguna Holdings Llc, et al., to employ PriceWaterhouseCoopers LLP as their accounting consultants. As reported in the Troubled Company Reporter on July 28, 2011, pursuant to the terms of the Engagement Letter, since June 8, 2011, PwC has been providing consulting and accounting services in connection with the review and evaluation of the Debtors' accounting and credit practices. PwC will continue to provide those services during the pendency of the Chapter 11 cases. The Debtors will pay PwC for services rendered in their bankruptcy cases according to these hourly rates: Partners $600 Directors $530 Managers $450 Senior Associates $365 Associates $290 The Debtors will also reimburse PwC for any direct expenses incurred in connection with its retention in these cases and the performance of the services set forth in the Engagement Letter. Robert Gallagher, a partner at PwC, attests that PwC is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About ArchBrook Laguna ArchBrook is a procurement and distribution intermediary between production companies and end retailers. It distributes consumer electronics, computers and appliances to principal customers that include Wal-Mart Stores Inc., Best Buy Co. and Costco Wholesale Corp. ArchBrook disclosed assets of $246.2 million against debt totaling $176.4 million as of March 31, 2011. ArchBrook Laguna Holdings LLC and certain of its affiliates filed voluntary petitions for reorganization under chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 11-13292) on July 8, 2011. Ira S. Dizengoff, Esq., Michael P. Cooley, Esq., and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, serve as bankruptcy counsel to ArchBrook Laguna. The Company is being advised by Macquarie Capital (USA) Inc. with respect to the sale process and by Hawkwood Consulting LLC, whose founder Stephen J. Gawrylewski is Chief Restructuring Officer of the Company. Macquarie Capital (USA) Inc. is the financial advisor. PricewaterhouseCoopers LLP is a consultant. Cooley LLP, in New York, is the counsel for the Official Committee of Unsecured Creditors. Gordon Brothers Group, LLC, was declared the winning bidder at the Aug. 8 auction of substantially all of the assets of ArchBrook Laguna LLC and its affiliates. ARCHBROOK LAGUNA: Garden City Approved as Administrative Agent -------------------------------------------------------------- The Hon. Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New York authorized, on an interim basis, Archbrook Laguna Holdings LLC, et al., to employ The Garden City Group, Inc., as administrative agent. As reported in the Troubled Company Reporter on July 29, 2011, upon retention, the firm, is expected among other things: (a) create and maintain a publicly-accessible case administration Web site, http://www.archbrookrestructuring.com,containing information about the Debtors, the Chapter 11 cases, and their restructuring, including but not limited to the posting of a claim register, key pleadings, scheduled hearings, and press releases; (b) host a toll-free telephone hotline, (888) 579-1199, that provides information regarding the cases; and (c) assist with the preparation and filing of the Debtors' schedules of assets and liabilities and statement of financial affairs; GCG intends to apply to the Court for allowances of compensation and reimbursement of out-of-pocket expenses incurred after the Petition Date in connection with these cases subject to Court approval and in accordance with the applicable provisions of the Bankruptcy Code, the Bankruptcy Rules, the Local Rules, General Order M-412, the guidelines established by the United States Trustee for the Southern District of New York and further orders of the Court. GCG has informed the Debtors that, subject to Court approval, it will bill at its standard hourly rates, which currently are $170 to $250.75 for senior management, $106.25 to $148.75 for project managers, and $38.25 to $93.50 for administrative and clerical staff. The Debtors believe that the firm's rates are consistent with market rates for comparable services. These hourly rates are subject to periodic adjustments (typically in January of each year) to reflect economic and other conditions. GCG will maintain detailed records of 6 actual and necessary costs and expenses incurred in connection with the legal services. GCG has received an initial retainer of $55,000 from the Debtors for its services under the 11 U.S.C. Sec. 327 application and the Section 156(c) application, and will apply same first against all prepetition fees and expenses and then against the last bill for fees and expenses that GCG will incur in the Chapter 11 cases. About ArchBrook Laguna ArchBrook is a procurement and distribution intermediary between production companies and end retailers. It distributes consumer electronics, computers and appliances to principal customers that include Wal-Mart Stores Inc., Best Buy Co. and Costco Wholesale Corp. ArchBrook disclosed assets of $246.2 million against debt totaling $176.4 million as of March 31, 2011. ArchBrook Laguna Holdings LLC and certain of its affiliates filed voluntary petitions for reorganization under chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 11-13292) on July 8, 2011. Ira S. Dizengoff, Esq., Michael P. Cooley, Esq., and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, serve as bankruptcy counsel to ArchBrook Laguna. The Company is being advised by Macquarie Capital (USA) Inc. with respect to the sale process and by Hawkwood Consulting LLC, whose founder Stephen J. Gawrylewski is Chief Restructuring Officer of the Company. Macquarie Capital (USA) Inc. is the financial advisor. PricewaterhouseCoopers LLP is a consultant. Cooley LLP, in New York, is the counsel for the Official Committee of Unsecured Creditors. Gordon Brothers Group, LLC, was declared the winning bidder at the Aug. 8 auction of substantially all of the assets of ArchBrook Laguna LLC and its affiliates. ARCHBROOK LAGUNA: Court Adjusts Macquarie Advisory Fees ------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York authorized, on an interim basis, Archbrook Laguna Holdings LLC, et al., to employ Macquarie Capital (USA) Inc. as their financial advisor. As reported in the Troubled Company Reporter on July 28, 2011, the Debtor proposed to employ Macquarie Capital, pursuant to an engagement letter dated as of May 19, 2011, as amended, and the related indemnification agreement. As financial advisor, Macquarie will assist in the evaluation of the Debtors' business and prospects, assist in the development of long-term business plan and related financial projections, analyze various restructuring scenarios and the potential impact of these scenarios on the recoveries of various stakeholders impacted by the restructuring, and provide strategic advice with regard to restructuring or refinancing the Debtors' obligations. Macquarie will be paid for professional services according to a fee structure, which provides for: (a) a monthly advisory fee of $125,000 per month with 50% of all Monthly Fees after the third Monthly Fee credited, without duplication, against any earned Restructuring Fee, Sale Transaction Fee or Financing Fee; and (b) a Financing Fee in an amount equal to: * 1% of the gross proceeds of all senior indebtedness; * 2% of the gross proceeds of all junior secured indebtedness; * 3% of the gross proceeds of all mezzanine indebtedness; * 5% of the gross proceeds of all equity, equity-linked or equity-like securities or indebtedness; and * with respect to any other securities of a financing, underwriting discounts, placement fees or other compensation, customary under the circumstances, as will be mutually agreed upon by the Company and Macquarie; and (c) a Restructuring Fee equal to 2% of the aggregate outstanding principal amount of the restructured obligations, which will not be less than $1,250,000, payable upon consummation of any restructuring pursuant to a bankruptcy proceeding; or (d) a Sale Transaction Fee equal to 1.5% of the Transaction Value up to $100,000,000 and 2% of incremental Transaction Value above $100,000,000, provided that the Sale Transaction Fee will not be less than $1,250,000, provided further that, if a Sale Transaction for a material portion of the assets occurs through a series of transactions, the Sale Transaction Fee payable in the case of that liquidation will not be based on the Transaction Value and will instead be $650,000; and (e) reasonable out-of-pocket expenses in connection with the services provided. Before the Petition Date and under the terms of the Engagement Letter, the Debtors paid Macquarie total fees of $75,000 per month for services rendered from May 19, 2011, through July 7, 2011, and for reasonable out-of-pocket expenses related to those services. David Miller, a managing director of Macquarie Capital, disclosed that as of May 19, 2011, Macquarie was paid a $100,000 Upfront Retainer and $117,500 in Monthly Advisory Fees for its prepetition services to the Debtors. As of July 8, 2011, Macquarie has earned $217,500 for the 48 calendar days it was employed prepetition, and has incurred $44,284 in out-of-pocket expenses. Mr. Miller assured the Court that Macquarie is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The Court ordered that the engagement letter will be amended in these respects, among other things: -- a fee in an amount equal to 1.5% of the Transaction Value up to $100,000,000 and 2.0% of incremental Transaction Value above $100,000,000 payable upon the consummation of a Sale Transaction provided that the minimum Sale Transaction Fee payable will be $1,250,000, further provided that a Sale Transaction Fee paid to Macquarie pursuant to the immediately preceding clause will be reduced by an amount equal to 50% of the aggregate amount of Monthly Advisory Fees Macquarie has received from the Debtors; further provided that, notwithstanding the foregoing, if a Sale Transaction for a material portion of the assets occurs through a series of transactions, the Sale Transaction Fee Payable in the case of such liquidation will not be based on the Transaction Value and will instead be $650,000; further provided that any Sale Transaction Fee paid to Macquarie pursuant to the immediately preceding clause will be reduced by an amount equal to 75% of the aggregate amount of Monthly Advisory Fees Macquarie has received from the Debtors. A final hearing on Macquarie's retention will be held on Sept. 7, 2011, at 10:00 a.m. (prevailing Eastern Time). About ArchBrook Laguna ArchBrook is a procurement and distribution intermediary between production companies and end retailers. It distributes consumer electronics, computers and appliances to principal customers that include Wal-Mart Stores Inc., Best Buy Co. and Costco Wholesale Corp. ArchBrook disclosed assets of $246.2 million against debt totaling $176.4 million as of March 31, 2011. ArchBrook Laguna Holdings LLC and certain of its affiliates filed voluntary petitions for reorganization under chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 11-13292) on July 8, 2011. Ira S. Dizengoff, Esq., Michael P. Cooley, Esq., and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, serve as bankruptcy counsel to ArchBrook Laguna. The Company is being advised by Macquarie Capital (USA) Inc. with respect to the sale process and by Hawkwood Consulting LLC, whose founder Stephen J. Gawrylewski is Chief Restructuring Officer of the Company. Macquarie Capital (USA) Inc. is the financial advisor. PricewaterhouseCoopers LLP is a consultant. Cooley LLP, in New York, is the counsel for the Official Committee of Unsecured Creditors. Gordon Brothers Group, LLC, was declared the winning bidder at the Aug. 8 auction of substantially all of the assets of ArchBrook Laguna LLC and its affiliates. ATI ACQUISITION: Moody's Keeps 'Caa2' After Papers Revoked ---------------------------------------------------------- Moody's Investors Service said ATI Acquisition Company's ratings, including its Caa2 corporate family rating, are not affected by the Texas Workforce Commission's August 9, 2011 announcement that it is revoking Certificates of Approval for 22 programs being taught at ATI's career schools in Texas due to a misreporting of graduate employment rates in those programs. The ratings remain under review for possible further downgrade. This summarizes the current ratings: Corporate family rating at Caa2; Probability of default rating at Caa2; $17.5 million senior secured revolving credit facility due 2014 at B3 (LGD2, 29%); $155.5 million senior secured term loan due 2014 at B3 (LGD2, 29%); $90 million subordinated credit agreement due 2015 at Caa3 (LGD5, 84%). The last rating action was on August 4, 2011, when Moody's lowered ATI's corporate family rating to Caa2 and placed the ratings under review for possible downgrade. The principal methodology used in rating ATI was the Global Business & Consumer Service Industry Rating Methodology published in October 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. ATI, based in North Richland Hills, Texas, is a postsecondary education company focused on vocational programs that operates 24 career training centers and schools in Texas, Florida, New Mexico, Arizona, and Oklahoma. AURA SYSTEMS: President Leaves to Pursue Other Interests -------------------------------------------------------- Aura Systems Inc. announced that Dr. Don Macleod resigned as president on Aug. 5, 2011, to pursue other interests. Dr. Macleod remains a large shareholder of the Company and will continue to assist the Company as a consultant. Mr. Melvin Gagerman Aura's CEO said, "It was a pleasure working with Don, we all will miss him and wish him the very best in whatever he does." Dr. Macleod said, "I enjoyed my stay at Aura and remain impressed with Aura's patented axial flux induction technology. It is rather interesting and amazing how the Company developed methods and technologies that make an axial flux induction machine a commercial reality and not just a university project. It is my belief that this axial flux induction machine opens new opportunities for many different applications." About Aura Systems El Segundo, Calif.-based Aura Systems, Inc., designs, assembles, tests and sells its proprietary and patented Axial Flux induction machine ("AF") known as the AuraGen(R) for industrial and commercial applications and VIPER for military applications. Kabani & Company, Inc., in Los Angeles, Calif., expressed substantial doubt about Aura Systems' ability to continue as a going concern, following the Company's results for the fiscal year ended Feb. 28, 2011. The independent auditors noted that the Company has historically incurred substantial losses from operations and may not have sufficient working capital or outside financing available to meet its planned operating activities over the next twelve months. The Company's balance sheet at May 31, 2011, showed $5.21 million in total assets, $16.55 million in total liabilities, and a $11.34 million total stockholders' deficit. AURASOUND INC: Amends March 31 Form 10-Q After SEC's Comments ------------------------------------------------------------- AuraSound, Inc., filed with the U.S. Securities and Exchange Commission Amendment No. 1 to its quarterly report on Form 10-Q for the quarter ended March 31, 2011, originally filed on May 5, 2011, in order to amend, among other things, the consolidated statements of cash flows in response to comments received by the Company from the SEC. The Company reported net income of $562,961 on $16.03 million of net revenue for the three months ended March 31, 2011, compared with a net loss of $480,653 on $1.74 million of net revenue for the same period during the prior year. The Company also reported net income of $1.61 million on $54.18 million of net revenue for the nine months ended March 31, 2011, compared with a net loss of $1.53 million on $4.81 million of net revenue for the same period a year ago. The Company's balance sheet at March 31, 2011, showed $34.09 million in total assets, $27.73 million in total liabilities, all current, and $6.36 million in total stockholders' equity. A full-text copy of the quarterly report, as amended, is available for free at http://is.gd/cmiJUD About AuraSound, Inc. Santa Ana, Calif-based AuraSound, Inc. (OTC BB: ARUZE) -- http://www.aurasound.com/-- develops, manufactures, and markets audio products. AuraSound's products include TV soundbars, high- drivers for TVs and laptops, subwoofers, and tactile transducers. Going Concern Kabani & Company, Inc., in Los Angeles, expressed substantial doubt about the Company's ability to continue as a going concern following the fiscal 2010 results. The independent auditors noted that during the year ended June 30, 2010, the Company incurred a net loss of $2.2 million, and had negative cash flow from operating activities of $202,383. As of Dec. 31, 2010, the Company has an accumulated deficit of $36,937,503, negative working capital of $4,716,502 and has reported significant losses over the past several years. During the six-month period ended Dec. 31, 2010 the Company recorded a net income of $1,014,895 and had net cash provided by operating activities of $627,713. According to the Form 10-Q for the quarter ended Dec. 31, 2010, "The move to profitability and positive cash flow is a directly result of the execution of new management's post acquisition business plan to cut costs on all business lines, hold and spread overhead costs against a larger revenue base and to continue to move toward sustained profitability. However, there can be no assurance that the Company can sustain profitability or positive cash flows from operations. As such, if the Company is unable to generate positive net income and unable to continue to obtain financing for its working capital requirements, it may have to curtail its business sharply or cease business altogether." AVISTAR COMMUNICATIONS: Files Form 10-Q, Incurs $2.2-Mil. Q2 Loss ----------------------------------------------------------------- Avistar Communications Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $2.19 million on $1.47 million of total revenue for the three months ended June 30, 2011, compared with a net loss of $2.40 million on $1.02 million of total revenue for the same period during the prior year. The Company also reported a net loss of $4.61 million on $2.86 million of total revenue for the six months ended June 30, 2011, compared with net income of $7.82 million on $15.79 million of total revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $2.31 million in total assets, $14.03 million in total liabilities, and a $11.71 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/Dr5AIb About Avistar Communications Headquartered in San Mateo, California, Avistar Communications Corporation (Nasdaq: AVSR) -- http://www.avistar.com/-- holds a portfolio of 80 patents for inventions in video and network technology and licenses IP to videoconferencing, rich-media services, public networking and related industries. Current licensees include Sony Corporation, Sony Computer Entertainment Inc. (SCEI), Polycom Inc., Tandberg ASA, Radvision Ltd. and Emblaze-VCON. The Company reported net income of $4.45 million on $19.65 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $3.98 million on $8.82 million of total revenue during the prior year. AXESSTEL INC: Incurs $687,000 Net Loss in Second Quarter -------------------------------------------------------- Axexxtel, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $687,264 on $7.54 million of revenue for the three months ended June 30, 2011, compared with a net loss of $1.36 million on $11.20 million of revenue for the same period during the prior year. The Company also reported a net loss of $1.22 million on $20.17 million of revenue for the six months ended June 30, 2011, compared with a net loss of $2.76 million on $26.67 million of revenue for the same period during the previous year. The Company's balance sheet at June 30, 2011, showed $8.93 million in total assets, $22.94 million in total liabilities, all current, and a $14 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/Okztk8 About Axesstel, Inc. San Diego, Calif.-based Axesstel, Inc. (OTC BB: AXST) -- http://www.axesstel.com/-- is a provider of fixed wireless voice and broadband access solutions for the worldwide telecommunications market. The Company reported a net loss of $6.31 million on $45.43 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $10.13 million on $50.82 million of revenue during the prior year. Gumbiner Savett Inc., in Santa Monica, Calif., 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 historically incurred substantial losses from operations, and the Company may not have sufficient working capital or outside financing available to meet its planned operating activities over the next twelve months. Additionally, there is uncertainty as to the impact that the worldwide economic downturn may have on the Company's operations. BAMACHEX INC: Files for Chapter 11 Bankruptcy Protection -------------------------------------------------------- BamaChex, Inc., has filed a Chapter 11 petition (Bankr. N.D. Ala. Case No. 11-04020) in Birmingham, Alabama, estimating assets and debts between $1 million and $10 million. Russell Hubbard at the Birmingham News reports that BamaChex indicated in the Chapter 11 filing that money will be available for unsecured creditors, or those who don't hold collateral. The report says the Company's filing listed eight locations: Birmingham, Center Point, Jasper, Cullman, Homewood, Anniston, Bessemer and Midfield. Bamachex was formed in 2008 to own and operate restaurants, according to the Alabama Secretary of State. In 2009, Bamachex signed a 20-year lease valued at almost $700,000 for its restaurant on 12th Avenue North in Birmingham. Rally's Hamburgers was formed in Indiana in the 1980s, and in 1999 merged with a Mobile-based chain called Checkers Drive-in Restaurants. BAMACHEX INC: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: BamaChex, Inc. c/o 1209 Crowne Reserve Dr. Hoover, AL 35244 Bankruptcy Case No.: 11-04020 Chapter 11 Petition Date: August 11, 2011 Court: United States Bankruptcy Court Northern District of Alabama (Birmingham) Judge: Benjamin G. Cohen Debtor's Counsel: Frederick Mott Garfield, Esq. SEXTON & ASSOCIATES, PC 1330 21st Way South Birmingham, AL 35205 Tel: (205) 558-4999 Fax: (205) 558-4997 E-mail: fmgarfield@sextonattorneys.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 Mark Williams, chief operating officer. BANK OF GRANITE: Incurs $3.4 Million Net Loss in Second Quarter --------------------------------------------------------------- Bank of Granite Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $3.42 million on $9.24 million of total interest income for the three months ended June 30, 2011, compared with a net loss of $7.51 million on $11.43 million of total interest income for the same period during the prior year. The Company also reported a net loss of $5.21 million on $18.94 million of total interest income for the six months ended June 30, 2011, compared with a net loss of $16.86 million on $23.72 million of total interest income for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $807.06 million in total assets, $787.75 million in total liabilities, and $19.30 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/tLFfDS About Bank of Granite Granite Falls, N.C.-based Bank of Granite Corporation is a Delaware corporation that was organized June 1, 1987, as a bank holding company. The Company's only businesses are the ownership and operation of Bank of Granite, a state bank chartered under the laws of North Carolina on Aug. 2, 1906, and Granite Mortgage, Inc., a mortgage bank chartered under the laws of North Carolina on June 24, 1985. Granite Mortgage discontinued its origination activities during 2009. The Company conducts its community banking business operations from 20 full-service offices located in Burke, Caldwell, Catawba, Forsyth, Iredell, Mecklenburg, Watauga, and Wilkes counties in North Carolina. Cease and Desist Order In 2009, Bank of Granite entered into a Stipulation and Consent to the issuance of an Order to Cease and Desist by the Federal Deposit Insurance Corporation and the North Carolina Commissioner of Banks. Based on the Company's Consent, the FDIC and the Commissioner jointly issued the Order on Aug. 27, 2009. The Order requires the Bank to achieve and maintain Tier 1 Leverage Capital Ratio of not less than 8% and a Total Risk-Based Capital of not less than 12% for the life of the Order. Going Concern Doubt The Company reported a net loss of $23.66 million on $44.80 million of total interest income for the year ended Dec. 31, 2010, compared with a net loss of $25.62 million on $52.64 million of total interest income during the prior year. Dixon Hughes PLLC, in Charlotte, North Carolina, expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's 2010 financial results. The independent auditors noted that the Company incurred net losses in 2010 and 2009, primarily from higher provisions for loan losses. Bank of Granite Corporation's wholly-owned bank subsidiary is under a regulatory order that requires, among other provisions, higher regulatory capital requirements. The Bank did not meet the higher capital requirements as of Dec. 31, 2010 and is not in compliance with the regulatory agreement. Failure to comply with the regulatory agreement may result in additional regulatory enforcement actions. BIOJECT MEDICAL: Posts $274,000 Net Income in Second Quarter ------------------------------------------------------------ Bioject Medical Technologies Inc. reported net income of $274,000 on $2.39 million of revenue for the three months ended June 30, 2011, compared with a net loss of $556,000 on $1.15 million of revenue for the same period a year ago. The Company also reported net income of $118,000 on $4.13 million of revenue for the six months ended June 30, 2011, compared with a net loss of 1.10 million on $2.34 million of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $4.88 million in total assets, $4.27 million in total liabilities, and $612,000 in stockholders' equity. "Second quarter 2011 revenue increased 107% over the same prior year-ago time period and we are very pleased by these positive results," said Ralph Makar, Bioject's President and CEO. "The significant increase in second quarter 2011 revenue contributed greatly to the over 76% revenue growth for the six months ending June 30, 2011, as compared to mid-year 2010 revenue. Due to our higher revenue, driven by increased sales to Merial and additional one-time orders to Merck Serono for 2011, which we began shipping in the second quarter, Bioject was able to report positive net income for both the quarter and the six months ended June 30, 2011," commented Mr. Makar. A full-text copy of the press release announcing the financial results its available for free at http://is.gd/SipaqI About Bioject Medical Bioject Medical Technologies Inc. (OTCBB: BJCT) -- http://www.bioject.com/-- based in Portland, Oregon, is an innovative developer and manufacturer of needle-free injection therapy systems. The Company is focused on developing mutually beneficial agreements with leading pharmaceutical, biotechnology, and veterinary companies. The Company reported a net loss of $1.47 million on $5.57 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.08 million on $6.69 million of revenue during the prior year. As reported by the TCR on April 5, 2011, Moss Adams LLP, in Portland, Oregon, noted that the Company has suffered recurring losses, has had significant recurring negative cash flows from operations, and has an accumulated deficit that raise substantial doubt about its ability to continue as a going concern. BIOLASE TECHNOLOGY: Incurs $753,000 Net Loss in Second Quarter -------------------------------------------------------------- BIOLASE Technology, Inc., reported a net loss of $753,000 on $12.08 million of net revenue for the three months ended June 30, 2011, compared with a net loss of $4.16 million on $5.89 million of net revenue for the same period during the prior year. The Company also reported a net loss of $1.50 million on $22.64 million of net revenue for the six months ended June 30, 2011, compared with a net loss of $9.47 million on $10.28 million of net revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $29.91 million in total assets, $15 million in total liabilities, and $14.91 million in total stockholders' equity. Federico Pignatelli, Chairman and CEO, said, in a statement, "The rate of revenue growth and operational progress at the Company continued to accelerate in the second quarter and our momentum going into the second half of the year is strong. Sales activities across our laser product platforms remained very active - especially in the case of the Waterlase iPlus, which we believe will become the most successful all-tissue dental laser in history. In addition, we are now taking orders and will soon be shipping the first units from our new BIOLASE DaVinci ImagingTM product line. We believe that the launch of imaging will not only benefit revenues, but will create additional synergy and higher utilization of our sales force investment for years to come. Our launch into the dental digital imaging capital equipment market allows us to leverage our valuable brand and existing install base and offer a perfect complement to our laser devices which is the next logical step in offering dentists our Total Technology SolutionTM." A full-text copy of the press release announcing the financial results its available for free at http://is.gd/nR8c81 A full-text copy of the Form 10-Q is available for free at: http://is.gd/2tgCfQ About BIOLASE Technology Irvine, Calif.-based BIOLASE Technology, Inc. (NASDAQ: BLTI) -- http://www.biolase.com/-- is a dental laser company. The Company develops, manufactures and markets Waterlase technology and lasers and related products that advance the practice of dentistry and medicine. The Company reported a net loss of $12.02 million on $24.58 million of products and services revenues for the year ended Dec. 31, 2010, compared with a net loss of $2.95 million on $42.14 million of products and services revenues during the prior year. BDO USA, LLP, raised substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The accounting firm noted that the Company has suffered recurring losses from operations, has had declining revenues and has a working capital deficit at Dec. 31, 2010. BIOLASE TECHNOLOGY: Board OKs 2MM Shares Stock Repurchase Program ----------------------------------------------------------------- BIOLASE Technology, Inc., announced that its Board of Directors has approved a stock repurchase program of up to 2,000,000 shares of the Company's outstanding common stock. The stock repurchase program will be effective commencing on the business day following the filing of the Company's quarterly report on Form 10-Q for the quarter ended June 30, 2011, with the Securities and Exchange Commission and will expire on the same day 24 months thereafter. Purchases may be made from time to time through a variety of methods, including open market purchases, privately negotiated transactions, and block transactions. The Company has no obligation to repurchase shares under the stock repurchase program, and the timing, actual number, and value of the shares that are repurchased will be at the discretion of the Company's management and will depend upon a number of considerations, including the trading price of the Company's common stock, general market conditions, applicable legal requirements, and other factors. The Company expects to fund the stock repurchase program with existing cash and cash equivalents on hand. Any shares repurchased will be retired and will resume the status of authorized and unissued shares. Federico Pignatelli, Chairman and CEO, said, "The management and the Board of Directors believe that the use of BIOLASE's capital has to be based on flexibility and opportunity. I see great value in repurchasing shares when irrational valuations occur." About BIOLASE Technology Irvine, Calif.-based BIOLASE Technology, Inc. (NASDAQ: BLTI) -- http://www.biolase.com/-- is a dental laser company. The Company develops, manufactures and markets Waterlase technology and lasers and related products that advance the practice of dentistry and medicine. The Company reported a net loss of $12.02 million on $24.58 million of products and services revenues for the year ended Dec. 31, 2010, compared with a net loss of $2.95 million on $42.14 million of products and services revenues during the prior year. The Company's balance sheet at June 30, 2011, showed $29.91 million in total assets, $15 million in total liabilities, and $14.91 million in total stockholders' equity. BDO USA, LLP, raised substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The accounting firm noted that the Company has suffered recurring losses from operations, has had declining revenues and has a working capital deficit at Dec. 31, 2010. BIOLASE TECHNOLOGY: Fulfills $9-Mil. Henry Schein Purchase Order ---------------------------------------------------------------- BIOLASE Technology, Inc., announced that it has fulfilled the second of two prepaid purchase orders totaling approximately $9 million under the Distribution and Supply Agreement entered into with Henry Schein on Sept. 23, 2010. The final products required to complete the second purchase order, totaling approximately $3 million, have been shipped during the current quarter, prior to the agreement's Aug. 25, 2011, due date. The first purchase order, totaling approximately $6 million, was completed during the fourth quarter of 2010 and the first quarter of 2011. Chairman and CEO Federico Pignatelli said, "I am very pleased that BIOLASE has now entirely fulfilled its purchase order obligations to Schein and eliminated this liability from its financial statements. We are thrilled as we continue to move forward into a new era utilizing a direct sales force and a wide range of independent distribution selling channels throughout the world." BIOLASE has renegotiated certain rights previously granted to Schein and regained full rights to sell or distribute the Company's products in North America and in all international markets which were formerly exclusive markets of Schein. BIOLASE now sells direct and through multiple distributors, including Schein, in North America and internationally. About BIOLASE Technology Irvine, Calif.-based BIOLASE Technology, Inc. (NASDAQ: BLTI) -- http://www.biolase.com/-- is a dental laser company. The Company develops, manufactures and markets Waterlase technology and lasers and related products that advance the practice of dentistry and medicine. The Company reported a net loss of $12.02 million on $24.58 million of products and services revenues for the year ended Dec. 31, 2010, compared with a net loss of $2.95 million on $42.14 million of products and services revenues during the prior year. The Company's balance sheet at June 30, 2011, showed $29.91 million in total assets, $15 million in total liabilities, and $14.91 million in total stockholders' equity. BDO USA, LLP, raised substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The accounting firm noted that the Company has suffered recurring losses from operations, has had declining revenues and has a working capital deficit at Dec. 31, 2010. BIOLIFE SOLUTIONS: Hikes Girschweiler & Villiger Loan Facilities ---------------------------------------------------------------- Biolife Solutions, Inc., entered into an amendment to its Secured Multi-Draw Term Loan Facility Agreement with each of Thomas Girschweiler, a director and stockholder of the Company, and Walter Villiger, an affiliate of the Company, each a non-U.S. Person, pursuant to which the amount of each of the Investor's Facility was increased to $5,250,000. The Note previously delivered to each of the Investors also was amended to reflect the changes to the Facility Agreement. In consideration of those amendments, the Company issued to each of the Investors a five- year warrant to purchase 1,000,000 shares of the Company's Common Stock, par value $0.001 per share, at a price of $0.063 per share. About BioLife Solutions Bothell, Washington-based BioLife Solutions, Inc. develops and markets patented hypothermic storage and cryopreservation solutions for cells, tissues, and organs, and provides contracted research and development and consulting services related to optimization of biopreservation processes and protocols. The Company reported a net loss of $1.98 million on $2.08 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $2.77 million on $1.58 million of total revenue during the prior year. The Company's balance sheet at March 31, 2011, showed $1.38 million in total assets, $11.48 million in total liabilities, and a $10.10 million total shareholder's deficiency. Peterson Sullivan LLP, in Seattle, Wash., expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The accounting firm noted that the Company has been unable to generate sufficient income from operations in order to meet its operating needs and has an accumulated deficit of approximately $52 million at Dec. 31, 2010. BMB MUNAI: To Delist from NYSE Amex After Emir Oil Sale ------------------------------------------------------- The Board of Directors of BMB Munai, Inc., authorized, subject to the successful completion of the sale of its wholly-owned operating subsidiary, Emir Oil LLP, to a wholly-owned subsidiary of MIE Holdings Corporation, the voluntarily delisting of the Company's common stock, $.001 par value per share, from the NYSE Amex LLC. The Company notified the Amex of its intention on Aug. 5, 2011. The Company expects that the last day of trading of its Common Stock on the Amex will be ten calendar days after the closing of the Sale. Notwithstanding the voluntary removal from listing on the Amex of its shares of Common Stock, the Company intends to continue to file periodic and other reports and make other filings with the Securities and Exchange Commission pursuant to the requirements of the Securities Exchange Act of 1934, as amended, for the foreseeable future. The Company's announcement of its intention to voluntarily delist from the NYSE Amex is another step in a series of steps the Company is taking towards the closing of the pending Sale. Sale of Emir Oil On Feb. 14, 2011, the Company entered into a Participation Interest Purchase Agreement with MIE Holdings Corporation, a company with limited liability organized under the laws of the Cayman Islands, and its subsidiary, Palaeontol B.V., a company organized under the laws of the Netherlands, pursuant to which the Company agreed to sell (i) all of its interest in Emir Oil to Palaeontol, and (ii) certain intercompany loans it made to Emir Oil. The initial purchase price is $170 million and is subject to various closing adjustments and the deposit of $36 million in escrow to be held for a period of twelve months following the closing for indemnification purposes. Upon consummation of the Sale, the Company will use a portion of the proceeds to repay the Company's outstanding Senior Notes and to pay transaction costs and expenses. The Company's stockholders approved the Sale of June 2, 2011. The The parties are currently working to satisfy the other closing conditions. About BMB Munai Based in Almaty, Kazakhstan, BMB Munai, Inc., is a Nevada corporation that originally incorporated in the State of Utah in 1981. Since 2003, its business activities have focused on oil and natural gas exploration and production in the Republic of Kazakhstan through its wholly-owned operating subsidiary Emir Oil LLP. Emir Oil holds an exploration contract that allows the Company to conduct exploration drilling and oil production in the Mangistau Province in the southwestern region of Kazakhstan until January 2013. The exploration territory of its contract area is approximately 850 square kilometers and is comprised of three areas, referred to herein as the ADE Block, the Southeast Block and the Northwest Block. The Company realized a loss from continuing operations of $15.1 million during fiscal year 2011 compared to $10.7 million during fiscal year 2010. This 41% increase in loss from continuing operations was primarily attributable to increased general and administrative and interest expense and the foreign exchange loss of $415,803 incurred during fiscal year 2011. Hansen, Barnett & Maxwell, P.C., in Salt Lake City, said that as a result of the pending sale of Emir Oil LLP, BMB Munai will have no continuing operations that result in positive cash flow, which raise substantial doubt about its ability to continue as a going concern. The Company did not generate any revenue during the fiscal years ended March 31, 2011, and 2010, except from oil and gas sales through Emir Oil. Bankruptcy Warning The Company has disclosed that if it does not complete the sale, it will not have sufficient funds to retire the restructured Senior Notes when they become due. "In this event, we would likely be required to consider liquidation alternatives, including the liquidation of our business under bankruptcy protection," the Company said. BRAND MANAGEMENT: Files List of Six Largest Unsecured Creditors --------------------------------------------------------------- Brand Management Services Inc. has filed with the U.S. Bankruptcy Court for the Eastern District of New York a list of its six largest unsecured creditors. Debtor's List of Six Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Sentry Insurance Company P.O. Box 88372 Insurance Premiums Wilwaulkee, WI 53288-0372 Disputed Claim $9,000,000.00 Harold Weber Bedford Avenue Brooklyn, NY 11211 Loan $749,333.00 US Management Inc. Loan From Affiliated 129 South 8th Street Company Brooklyn, NY 11211 $269,917.53 A Best Management Inc. Loan From Affiliated Company Agreed Claim $219,026.56 County Agency Inc. Loan From Affiliated Company Agreed Claim $205,833.13 Value Management Loan From Affiliated Company $83,000.00 About Brand Management Services Brooklyn, New York-based Brand Management Services Inc. is a privately held company that provides various business services to its customers. Its primary assets consist of accounts receivable, leasehold improvements and cash in the bank. Brand Management Services filed for Chapter 11 bankruptcy (Bankr. E.D.N.Y. Case No. 11-46230) on July 20, 2011. Judge Joel B. Rosenthal presides over the case. Avrom R. Vann, P.C., serves as bankruptcy counsel. Brand Management Services filed with the Court its schedules of assets and liabilities, disclosing $280,627 in total assets, consisting mostly of accounts receivable, office improvement and equipment, and $7,119 in a bank account with Capital One. The Debtor listed $10,527,110 in total liabilities, all general unsecured non-priority in nature. The petition was signed by Harold Weber, president. CAESARS ENTERTAINMENT: Incurs $153.1-Mil. 2nd Quarter Net Loss -------------------------------------------------------------- Caesars Entertainment Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $153.10 million on $2.23 billion of net revenues for the quarter ended June 30, 2011, compared with a net loss of $272.50 million on $2.22 billion of net revenues for the same period during the prior year. The Company also reported a net loss of $297.90 million on $4.41 billion of net revenues for the six months ended June 30, 2011, compared with a net loss of $466.10 million on $4.41 billion of net revenues for the same period during the previous year. The Company's balance sheet at June 30, 2011, showed $28.96 billion in total assets, $27.53 billion in total liabilities, $36 million in redeemable non-controlling interests, and $1.39 billion in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/XpwC06 About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc. -- http://www.caesars.com/-- is one of the world's largest casino companies, with annual revenue of $4.2 billion, 20 properties on three continents, more than 25,000 hotel rooms, two million square feet of casino space and 50,000 employees. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's on mid-November 2010. Harrah's carries 'Caa3' long term corporate family and probability of default ratings, with 'positive' outlook, from Moody's Investors Service. It has a 'B-' issuer credit rating, with 'stable' outlook, from Standard & Poor's. "The 'B-' corporate credit rating reflects Caesars' very weak credit measures and our belief that prospects for a meaningful rebound in net revenues and EBITDA in 2011 do not seem promising given the current economic outlook," said Standard & Poor's credit analyst Ben Bubeck in May 2011. "While several actions taken by management have positioned the company with a moderate covenant cushion and very limited debt maturities over the next few years, Caesars' capacity to continue to fund operational and capital spending needs and meet debt service obligations relies on meaningful growth in cash flow generation over the next few years." As reported by the TCR on March 3, 2011, Moody's Investors Service upgraded Caesars Entertainment's Corporate Family ratings and Probability of Default ratings to Caa2. CET's Caa2 Corporate Family Ratings reflect very high leverage, weak interest coverage, the company's debt financed growth strategy, and Moody's view that the company's current capital structure in unsustainable in the long-term. The ratings reflect Moody's expectation that gaming demand will rebound very slowly over the next several years. However, in the absence of a material de-leveraging transaction, Moody's do not expect the company's capital structure to improve materially over the next few years. Additionally, given CEC's weak credit profile, there is a possibility that the company could again pursue transactions that will result in impairment of debt holder claims as a means to improve its capital structure. CAPITOL BANCORP: Incurs $17.5 Million Net Loss in Second Quarter ---------------------------------------------------------------- Capitol Bancorp Limited reported a net loss of $17.50 million on $28.91 million of total interest income for the three months ended June 30, 2011, compared with a net loss of $43.92 million on $35.26 million of total interest income for the same period during the prior year. The Company also reported a net loss of $20.28 million on $59.67 million of total interest income for the six months ended June 30, 2011, compared with a net loss of $105.86 million on $72.44 million of total interest income for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $2.94 billion in total assets, $3 billion in total liabilities, and a $58.95 million total deficit. Capitol's Chairman and CEO Joseph D. Reid said, "Our efforts are focused on addressing the challenges that we continue to face in multiple markets. We continue to work on deleveraging the consolidated balance sheet and reallocating equity capital across our affiliate bank network, while also focusing on efficiently managing corporate risk and improving liquidity. Although declines have been evidenced in recent quarters, the levels of nonperforming assets remain elevated and the management of those assets requires significant attention and resources. We are confident that appropriate steps are being taken through regional consolidations and bank divestiture efforts to address the deterioration that has occurred in capital and we are cautiously encouraged by recent positive trends in asset quality and operating performance." A full-text copy of the press release announcing the financial results is available for free at http://is.gd/4t9cPS About Capitol Bancorp Limited Capitol Bancorp Limited (NYSE: CBC) -- http://www.capitolbancorp.com/-- is a $5.1 billion national community banking company, with a network of bank operations in 16 states. Founded in 1988, Capitol Bancorp Limited has executive offices in Lansing, Michigan and Phoenix, Arizona. The Company reported a net loss of $254.36 million on $163.69 million of total interest income for the year ended Dec. 31, 2010, compared with a net loss of $264.54 million on $197.78 million of total interest income during the prior year. In September 2009, Capitol and its second-tier bank holding companies entered into a written agreement with the Federal Reserve Bank of Chicago under which Capitol has agreed, among other things, to submit to the Reserve Bank a written plan to maintain sufficient capital at Capitol on a consolidated basis and at Michigan Commerce Bank (as a separate legal entity on a stand- alone basis); and a written plan to enhance the consolidated organization's risk management practices, a strategic plan to improve the consolidated organization's operating results and overall condition and a cash flow projection. Certain of Capitol's bank subsidiaries have entered into formal agreements with their applicable regulatory agencies. Those agreements provide for certain restrictions and other guidelines and/or limitations to be followed by the banks. In 2009, Capitol commenced the deferral of interest payments on its various trust-preferred securities, as is permitted under the terms of the securities, to conserve cash and capital resources. The payment of interest may be deferred for periods up to five years. During such deferral periods, Capitol is prohibited from paying dividends on its common stock (subject to certain exceptions) and is further restricted by Capitol's written agreement with the Federal Reserve Bank of Chicago. Accrued interest payable on such securities approximated $18.1 million at June 30, 2010. CAPSTONE TURBINE: Posts $2.9 Million Net Loss in Q1 Ended June 30 ----------------------------------------------------------------- Capstone Turbine Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $2.9 million on $24.3 million of revenue for the three months ended June 30, 2011, compared with net income of $392,000 on $16.1 million of revenue for the three months ended June 30, 200. The Company's balance sheet at June 30, 2011, showed $77.3 million in total assets, $43.7 million in total liabilities, and stockholders' equity of $33.6 million. The Company says in the filing that although it expects that its existing cash and cash equivalents are sufficient to meet its anticipated cash needs for working capital and capital expenditures for at least the next twelve months. However, if anticipated cash needs of the Company change, it may have to raise funds by selling additional securities to the public or to selected investors, or by obtaining debt financing. "Should the Company be unable to execute its plans or obtain additional financing that might be needed if the Company's cash needs change, the Company may be unable to continue as a going concern. Therefore, there is substantial doubt as to the Company's ability to continue as a going concern." A copy of the Form 10-Q is available at http://is.gd/AaMvI3 Chatsworth, California-based Capstone Turbine Corporation develops, manufactures, markets and services microturbine technology solutions for use in stationary distributed power generation applications, including cogeneration (combined heat and power, integrated combined heat and power, combined cooling, heat and power, resource recovery and secure power. In addition, the Company's microturbines can be used as battery charging generators for hybrid electric vehicle applications. CARGO TRANSPORTATION: Committee Taps Hill Ward as Counsel --------------------------------------------------------- The Official Committee of Unsecured Creditors of Cargo Transportation Services Inc. asks the U.S. Bankruptcy Court for the Middle District of Florida for permission to retain Hill Ward & Henderson P.A. as its counsel to advise the Committee with respect to its rights, powers and duties in the Chapter 11 case. The firm will charge the Debtor's estates based on the hourly rates of its professionals: Michael P. Brundage, Esq. $400 Kem Tool, Esq. $350 Patrick Mosley, Esq. $275 R. Travis Santos, Esq. $200 Associate $200-$400 Paralegal $90-$150 The Committee assures the Court that the firm is "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Cargo Transportation Sunrise, Florida-based Cargo Transportation Services, Inc., provides transportation services to clients nationwide, including customized consolidation, distribution, logistics and warehousing services. It has 140 employees and averages $100,000,000 in gross revenue per year. Cargo Transportation filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 11-00432) on Jan. 12, 2011. Edward J. Peterson, III, Esq., at Stichter, Riedel, Blain & Prosser, PA, serves as the Debtor's bankruptcy counsel. Jennis & Bowen, P.L., serves as substitute counsel. 1 Source Partners Inc. and Accell Audit & Compliance P.A., serve as the Debtor's certified public accountants. Donald F. Walton, U.S. Trustee for Region 21, appointed an Official Committee of the Official Committee of Unsecured Creditors in the Debtor's case. Hunton & Williams LLP represents the Committee in the Chapter 11 proceedings. The Debtor disclosed $11,728,760 in assets, and $11,869,375 in liabilities as of the Chapter 11 filing. CCB INVESTORS: Case Summary & 9 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: CCB Investors Assets Management, LLC 495 Peacock Lane North Jupiter, FL 33458 Bankruptcy Case No.: 11-32534 Chapter 11 Petition Date: August 11, 2011 Court: U.S. Bankruptcy Court Southern District of Florida (West Palm Beach) Judge: Erik P. Kimball Debtor's Counsel: Susan D. Lasky, Esq. SUSAN D. LASKY, PA 2101 N. Andrews Avenue, #405 Wilton Manors, FL 33311 Tel: (954) 565-5854 Fax: (954) 462-8411 E-mail: SDLPAECF@bellsouth.net Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $1,000,001 to $10,000,000 The petition was signed by Chris Baker, manager. Debtor's List of nine Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Angelo T. Gullotti -- $877,000 27370 Winding Way Malibu, CA 90265 William L. Baker -- $425,000 9 South Marina Way Key Largo, FL 33037 Nexus Design Group -- $25,000 2875 Jupiter Park Drive, Suite 500 Jupiter, FL 33458 The Bluffs Marina Assoc. -- $22,120 IRS -- $13,000 Sotillo & Company CPA -- $9,095 Morgan Olsen & Olsen -- $8,955 Smiley & Associates Inc. -- $1,360 Cotleur & Hearing -- $1,295 CELL THERAPEUTICS: Settles Lash Litigation for $11 Million ---------------------------------------------------------- Cell Therapeutics, Inc., has settled an outstanding litigation entitled Cell Therapeutics, Inc., v. The Lash Group, Inc., et al., Case No. 07-310. Under the settlement agreement, CTI will receive from Lash's insurers a cash payment of $11 million within 60 days. Net proceeds to CTI after payment of unaccrued attorneys' fees, litigation costs and expenses will be approximately $8.3 million. The settlement also provides for a complete, mutual and general release of all claims between CTI and Lash Group, Inc. On Jan. 22, 2007, the Company filed a complaint in King County Washington Superior Court against Lash and Documedics Acquisition Co., Inc., the Company's former third-party reimbursement expert for TRISENOX, seeking recovery of damages, including losses incurred by the Company in connection with its investigation, defense and settlement of claims by the United States concerning Medicare reimbursement for TRISENOX and other claims. On Feb. 28, 2007, Lash removed the case to U.S. District Court in the Western District of Washington. The settlement is not an admission of liability by either party. About Cell Therapeutics Headquartered in Seattle, Washington, Cell Therapeutics, Inc. (NASDAQ and MTA: CTIC) -- http://www.CellTherapeutics.com/-- is a biopharmaceutical company committed to developing an integrated portfolio of oncology products aimed at making cancer more treatable. The Company reported a net loss of $82.64 million on $319,000 of revenue for the 12 months ended Dec. 31, 2010, compared with a net loss of $82.64 million on $80,000 of total revenue during the same period in 2009. The Company's balance sheet at March 31, 2011 showed $60.92 million in total assets, $43.11 million in total liabilities, $13.46 million in common stock purchase warrants and $4.35 million total shareholders' equity. Marcum LLP, in San Francisco, Calif., expressed substantial doubt about the Company's ability to continue as a going concern in its audit reports for the financial statements for 2009 and 2010. The independent auditors noted that the Company has incurred losses since its inception, and has a working capital deficiency of approximately $14.2 million at Dec. 31, 2010. CENTRAL FALLS, R.I.: Other Local Govts. Awaiting Pension Ruling --------------------------------------------------------------- Bob Thayer at the Providence Journal reports that as state receiver Robert G. Flanders Jr. used the power of the bankruptcy filing to impose immediate changes in the city of Central Falls' pension plans, governmental officials and bankruptcy specialists across the country will be watching to see if the court allows it to stand. If does, it could give other financially strapped governments a powerful option in their efforts to cut retiree benefits, according to the report. According to the Providence Journal, the local governments in Chapter 9 cases in California didn't ask the court to let them impose changes in their pension plans. Both were able to use the court's contract-changing power to find the savings they needed in their annual operating budgets; they didn't need concessions from retirees. 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. CENTRAL FALLS, R.I.: Receiver Wants Exit Plan in a Month -------------------------------------------------------- John Hill, Providence Journal staff writer, reports Robert G. Flanders Jr., the state-appointed receiver for the city of Central Falls, Rhode Island, wants a reorganization plan done in a month. By setting an end-of-summer goal, Mr. Flanders is seeking to buck the general trend in bankruptcies, where cases can linger for years and cost millions of dollars, the report notes. According to the Providence Journal, special bankruptcy Judge Frank J. Bailey, sitting in Providence, has said he too wants the Central Falls case resolved as swiftly as practicable and is willing to assist in any settlement talks. The Providence Journal relates Mr. Flanders is seeking court approval to make $5.6 million in spending cuts by reducing the city's $22-million operating budget and cutting by as much as 50% the pensions being paid to some of the city's 140 former public safety employees or their survivors. The pension cuts are driven by a local pension fund that -- projections warn -- could be out of money shortly, at current payment rates. The operating budget reductions are to bring spending in line with income now and in the future. According to the report, lawyers for the unions representing police, firefighters and municipal employees, and the public safety retirees, argue Mr. Flanders may not have the authority to void existing union contracts, as he did in filing his bankruptcy petition with the court Aug. 1. Briefs on that issue are to be filed by Sept. 16. The Providence Journal also reports that figures compiled last week by Governor Chafee's office showed that, as of Monday, over the past 13 months, the state had paid $1.1 million in legal fees and payments to the receivers since assuming control of the city. That came after the City Council and Mayor Charles D. Moreau tried to file for state bankruptcy in May 2010, claiming the city was insolvent. The Providence Journal relates the $1.1 million includes $197,289 for work done from July 2010 to February 2011 by the first receiver, retired Superior Court judge Mark A. Pfeiffer and, through the previous week, $150,207 in pay to Mr. Flanders, who served on the state Supreme Court and was appointed receiver by Gov. Chafee at the end of Mr. Pfeiffer's term. The report says most of the remainder, $716,011, went to the two law firms that have been handling the legal work on the case -- Orson and Brusini and Edwards, Angell, Palmer and Dodge. It didn't include the salaries of state employees from agencies that include the Governor's Office of Economic Recovery and Investment, the Department of Administration and the Department of Revenue who have been assigned to work in various positions in Central Falls government at various times over the past year. The report also notes $295,030 of the state legal expenses through the prior week -- 41% of total -- resulted from a defense of the receivership law passed by the General Assembly in June 2010. Mr. Moreau and the City Council, who were stripped of their governing authority by the new law, challenged it in Superior Court, and lost. An appeal to the state Supreme Court also failed. Both courts ruled the receivership law constitutional. 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. The Central Falls receivership, the state's first, has left the mayor and council without any power to govern. Judge Frank Bailey presides over the Chapter 9 case. Theodore Orson, Esq., at Orson and Brusini Ltd., serves as bankruptcy counsel to the receiver. CENTRAL PACIFIC FINANCIAL: Reports $8.2MM Income in 2nd Quarter --------------------------------------------------------------- Central Pacific Financial Corp. filed its quarterly report on Form 10-Q, reporting net income of $8.21 million on $28.98 million of net interest income for the three months ended June 30, 2011, compared with a net loss of $16.10 million on $29.20 million of net interest income for the same period last year. Provision for loan and lease losses was a credit of $8.78 million during the second quarter of 2011, compared to a charge of $20.41 million in the second quarter of 2010. The Company reported net income of $12.85 million on $57.18 million of net interest income for the six months ended June 30, 2011, compared with a net loss of $176.32 million on $64.27 million of net interest income for the same period last year. Provision for loan and lease losses was a credit of $10.36 million during the first six months quarter of 2011, compared to a charge of $79.25 million in the first six months of 2010. The Company and its subsidiaries' consolidated balance sheet at June 30, 2011, showed $4.132 billion in total assets, $3.698 billion in total liabilities, and total equity of $433.77 million. Total equity was $76.06 million at Dec. 31, 2010. A copy of the Form 10-Q is available at http://is.gd/5HNOyv Going Concern As reported in the TCR on Feb. 15, 2011, KPMG LLP, in Honolulu, Hawaii, expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company entered into a consent order dated Dec. 8, 2009, with its primary banking regulators that among other things restricts certain operations and requires the Company to increase its leverage and total risk- based capital ratios to at least 10% and 12%, respectively, by March 31, 2010, and maintain such levels thereafter. Since the filing of its 2010 Form 10-K, the Company has completed a number of significant milestones as part of its recovery plan, including the completion of a $325 million capital raise in February 2011 and a $20 million common stock rights offering. Upon completion of these milestones, there is no longer substantial doubt about the Company's ability to continue as a going concern. About Central Pacific Financial Based in Honolulu, Hawaii, Central Pacific Financial Corp. (NYSE: CPF) -- http://www.centralpacificbank.com/-- is the parent company of Central Pacific Bank, a full-service commercial bank with 34 bank branches and 120 ATMs located throughout the State of Hawaii. The bank also has an office in California. * * * This concludes the Troubled Company Reporter's coverage of Central Pacific Financial Corp. until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. CHELSEA 17: Case Summary & 5 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Chelsea 17 Properties LLC 602 N. Roxbury Dr. Beverly Hills, CA 90210 Bankruptcy Case No.: 11-44439 Chapter 11 Petition Date: August 12, 2011 Court: United States Bankruptcy Court Central District Of California (Los Angeles) Judge: Vincent P. Zurzolo Debtor's Counsel: Rachel S. Ruttenberg, Esq. LAW OFFICES OF MARK E. GOODFRIEND 16255 Ventura Blvd Ste 205 Encino, CA 91436 Tel: (818) 783-8866 Fax: (818) 783-5445 E-mail: rruttenberg@gmail.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 five largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb11-44439.pdf The petition was signed by Jonathan Ledesma, manager. CINRAM INT'L: Credit Amendment Falls Short of Lasting Relief ------------------------------------------------------------ Dow Jones' DBR Small Cap reports that Cinram International Inc. is about to get lenders' approval to ease some financial covenants on its debt, but the measure may not be enough for the maker of pre- recorded DVDs and CDs to reposition itself in the quickly evolving digital media industry, some analysts said. With headquarters in Toronto, Ontario, Canada, Cinram International Inc. is one of the world's largest independent manufacturers, replicators and distributors of DVDs and audio CDs. As reported in the Troubled Company Reporter on Aug. 5, 2011, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Cinram International Inc. to 'CCC' from 'B-'. "These rating actions follow Cinram's announcement of weaker-than- expected operating performance in the second quarter ended June 30, 2011, which resulted in management's expectation that the company will not be in compliance with its financial covenants, including the leverage and interest coverage covenants, for the second quarter and future periods," said Standard & Poor's credit analyst Lori Harris. "If the company does not receive an amendment to its credit agreements to comply with the financial covenants, Cinram would be in default under the agreements," Ms. Harris added. CLAIRE'S STORES: To Report 7.3% Hike in Second Quarter Sales ------------------------------------------------------------ Claire's Stores, Inc., announced selected preliminary, unaudited financial results for the fiscal 2011 second quarter, which ended July 30, 2011. The Company expects to report net sales of $359 million for the 2011 second quarter, an increase of $24 million, or 7.3%, compared to the 2010 second quarter. The increase was attributable to favorable foreign currency translation effect of the Company's foreign locations' sales, new store sales, and an increase in shipments to franchisees, partially offset by a decrease in same store sales and the effect of store closures. Net sales would have increased 1.7% excluding the impact from foreign currency rate changes. Adjusted EBITDA in the 2011 second quarter is expected to be between $56 million and $58 million, compared to $55.3 million in the 2010 second quarter. At July 30, 2011, cash and cash equivalents were $211 million, including restricted cash of $27 million. The Company's Revolving Credit Facility continued to be undrawn following the March 2011 paydown from the proceeds of the Senior Secured Second Lien Notes. In addition, during the 2011 second quarter, the Company paid $21 million to retire $3 million of Senior Notes and $19 million of Senior Toggle Notes. A full-text copy of the press release announcing the preliminary results is available for free at http://is.gd/kHi2Ak About Claire's Stores Claire's Stores, Inc. -- http://www.clairestores.com/-- operates as a specialty retailer of fashion accessories and jewelry for preteens and teenagers, as well as for young adults in North America and internationally. It offers jewelry products that comprise costume jewelry, earrings, and ear piercing services; and accessories, including fashion accessories, hair ornaments, handbags, and novelty items. Based in Pembroke Pines, Florida, Claire's Stores operates under two brands: Claire's(R), which operates worldwide and Icing(R), which operates only in North America. As of Jan. 31, 2009, Claire's Stores, Inc., operated 2,969 stores in North America and Europe. Claire's Stores, Inc., also operates through its subsidiary, Claire's Nippon, Co., Ltd., 213 stores in Japan as a 50:50 joint venture with AEON, Co., Ltd. The Company also franchises 198 stores in the Middle East, Turkey, Russia, South Africa, Poland and Guatemala. The Company's balance sheet at April 30, 2011, showed $2.86 billion in total assets, $249.40 million in total current liabilities, $2.64 billion in long-term debt, and a stockholders' deficit of $26.70 million. As reported by the Troubled Company Reporter on March 15, 2011, Moody's upgraded Claire's Stores, Inc.'s senior secured bank credit facilities to B3 from Caa1 and its Speculative Grade Liquidity Rating to SGL-2 from SGL-3. All other ratings were affirmed including Claire's Caa2 Corporate Family Rating. The rating outlook is positive. * * * Claire's Stores carries 'Caa2' corporate family and probability of default ratings, with 'positive' outlook, from Moody's Investors Service, and 'B-' issuer credit ratings, with 'stable' outlook, from Standard & Poor's. Moody's Investors Service in December 2010 upgraded Claire's Stores' ratings, including its Corporate Family Rating and Probability of Default Rating, to 'Caa2' from 'Caa3'. The upgrade reflects a decrease in Claire's probability of default given that the company can now fully cover its interest expense. This is due to earnings improvement from solid comparable store sales growth, improved merchandise margins, and continued expense discipline. Claire's Caa2 Probability of Default Rating reflects Moody's view that although Claire's credit metrics have improved, they remain very weak as a result of its heavy debt load. For the twelve months ending Oct. 30, 2010, Claire's debt to EBITDA was very high at 9.3 times. CLEARWIRE CORP: Promotes Erik Prusch to President and CEO --------------------------------------------------------- Clearwire Corporation announced the promotion of Chief Operating Officer Erik Prusch to President and Chief Executive Officer. John Stanton, the company's Chairman and interim CEO, will become Executive Chairman of the Board of Directors. Both changes are effective immediately. "Erik has demonstrated the ability and talent necessary to lead our organization through one of the most competitive periods in the mobile broadband industry's short history," said John Stanton. "I strongly believe that under his guidance our business will deliver value to shareholders as we continue to grow our business and leverage our unmatched and unencumbered spectrum advantage." "My personal commitment to Clearwire remains strong," Stanton continued. "Further developing a successful strategic framework that will allow our business to thrive long-term continues to be my top priority." "Since joining Clearwire I have witnessed tremendous growth and change in the mobile broadband space and I recognize the many opportunities and challenges that lie ahead," said Erik Prusch. "John and I, as well as the rest of our senior leadership team, are focused on successfully executing the critical tasks needed to grow our business and fully leverage our significant spectrum assets in order to keep Clearwire on course as a leader in mobile broadband and the largest 4G provider in the United States." Prusch joined Clearwire in August 2009 as CFO and led the efforts to raise over $6 billion in equity and debt to fund the company's explosive growth. During his tenure, revenue has increased by 427 percent to an annualized run rate of over $1.2 billion, the subscriber base has grown by 1,352 percent, and margins have improved by 80 percentage points through careful expense controls. He was promoted to COO in March. Throughout his career he has successfully enabled businesses through periods of rapid growth, operational scaling and expansion financing. Prior to joining Clearwire, Prusch served as President and CEO of Borland Software, where he also previously served as CFO, leading the restructuring of the company and returning the business to profitability. Prior to Borland, he was Vice President of Finance at Intuit, CFO of Identix Incorporated and Vice President and CFO, Finance and Operations at Gateway Computers, Incorporated. Prusch began his career at Touche Ross and PepsiCo. He holds a B.A. from Yale University, and earned an M.B.A. from the Stern School of Business at New York University. Pursuant to an offer letter, Mr. Prusch's initial salary will be $700,000, with a target bonus of $700,000, and an equity grant of 666,667 restricted stock units, convertible into shares of Class A common stock of the Company. 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. 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. * * * 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 BANCGROUP: Execs, Investors Settle Fraud Suit for $10.5MM ------------------------------------------------------------------ Carolina Bolado at Bankruptcy Law360 reports that Colonial BancGroup Inc. shareholders reached a $10.5 million settlement in a putative class action Friday in Alabama to resolve claims the company's executives engineered a multipart fraud that gutted investors and drove the company into bankruptcy. About The Colonial BancGroup Headquartered in Montgomery, Alabama, The Colonial BancGroup Inc. (NYSE: CNB) owned Colonial Bank, N.A, its banking subsidiary. Colonial Bank -- http://www.colonialbank.com/-- operated 354 branches in Florida, Alabama, Georgia, Nevada and Texas with over $26 billion in assets. On Aug. 14, 2009, Colonial Bank was seized by regulators and the Federal Deposit Insurance Corporation was named receiver. The FDIC sold most of the assets to Branch Banking and Trust, Winston-Salem, North Carolina. BB&T acquired $22 billion in assets and assumed $20 billion in deposits of the Bank. The Colonial BancGroup filed for Chapter 11 bankruptcy protection (Bankr. M.D. Ala. Case No. 09-32303) on Aug. 25, 2009. W. Clark Watson, Esq., at Balch & Bingham LLP, and Rufus T. Dorsey IV, Esq., at Parker Hudson Rainer & Dobbs LLP, serve as counsel to the Debtor. The Debtor disclosed $45 million in total assets and $380 million in total liabilities as of the Petition Date. In September 2009, an Official Committee of Unsecured Creditors was formed consisting of three members, Fine Geddie & Associates, The Bank of New York Trust Company, N.A., and U.S. Bank National Association. Burr & Forman LLP and Schulte Roth & Zabel LLP serve as co-counsel for the Committee. Colonial Brokerage, a wholly owned subsidiary of Colonial BancGroup, filed for Chapter 7 protection with the U.S. Bankruptcy Court in the Middle District of Alabama in June 2010. Susan S. DePaola serves as Chapter 7 trustee. In June 2011, the bankruptcy judge signed a confirmation order approving Colonial BancGroup's Chapter 11 plan over objection from the Federal Deposit Insurance Corp. COMSTOCK MINING: Incurs $4.7-Mil. Second Quarter Net Loss --------------------------------------------------------- Comstock Mining Inc. said that net loss for the second quarter ended June 30, 2011 was $4.7 million, resulting primarily from operating expenses of $5.4 million, mainly for development drilling and general and administrative expenses, offset by a $0.5 million non-cash gain resulting from a change in the fair value of the contingent dividend obligation. Net cash used by operating activities in Q2 2011 was $3.3 million, versus $1.9 million in Q2 2010. Total debt at June 30, 2011, was $1.0 million as compared to total debt at year-end 2010 of $1.5 million; all relating to mortgage obligations. Cash, cash equivalents and investments at June 30, 2011, were $21.5 million compared to $29.8 million at Dec. 31, 2010. A full-text copy of the press release announcing the preliminary financial results is available for free at http://is.gd/mwaNEP About Comstock Mining Virginia City, Nev.-based Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the historic Comstock district. The Company began acquiring properties in the Comstock in 2003. Since then, the Company has consolidated a substantial portion of the Comstock district, secured permits, built an infrastructure and brought the exploration project into test mining production. The Company continues acquiring additional properties in the Comstock district, expanding its footprint and creating opportunities for exploration and mining. The goal of the Company's strategic plan is to deliver stockholder value by validating qualified resources (measured and indicated) and reserves (probable and proven) of 3,250,000 gold equivalent ounces by 2013, and commencing commercial mining and processing operations by 2011, with annual production rates of 20,000 gold equivalent ounces. The Company reported a net loss of $60.32 million for the year ended Dec. 31, 2010, compared with a net loss of $6.06 million during the prior year. The Company had no revenues from operations for the years ended Dec. 31, 2010 and 2009. The Company's balance sheet at March 31, 2011, showed $33.17 million in total assets, $10.89 million in total liabilities, and $22.28 million in total stockholders' equity. COMSTOCK MINING: Winfiled Group OKs Registration Filing Extension ----------------------------------------------------------------- Comstock Mining Inc. entered into a "consent" document with John V. Winfield, The InterGroup Corporation, Portsmouth Square Inc., Santa Fe Financial Corporation and DWC Resources, Inc. The Company and the Winfield Group agreed to extend the due dates by which a registration statement will be filed with respect to common shares underlying convertible preferred stock of the Company held by the Winfield Group, and waiving certain rights related thereto. A full-text copy of the Consent is available for free at http://is.gd/BbA8zT About Comstock Mining Virginia City, Nev.-based Comstock Mining Inc. is a Nevada-based, gold and silver mining company with extensive, contiguous property in the historic Comstock district. The Company reported a net loss of $60.32 million for the year ended Dec. 31, 2010, compared with a net loss of $6.06 million during the prior year. The Company had no revenues from operations for the years ended Dec. 31, 2010 and 2009. The Company's balance sheet at March 31, 2011, showed $33.17 million in total assets, $10.89 million in total liabilities, and $22.28 million in total stockholders' equity. CONTECH CONSTRUCTION: Bank Debt Trades at 23% Off ------------------------------------------------- Participations in a syndicated loan under which Contech Construction Products, Inc., is a borrower traded in the secondary market at 77.20 cents-on-the-dollar during the week ended Friday, Aug. 12, 2011, a drop of 4.71 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on Jan. 31, 2013, and carries Moody's 'Caa2' rating and Standard & Poor's 'B' rating. The loan is one of the biggest gainers and losers among 72 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Contech Construction Headquartered in West Chester, Ohio, Contech Construction Products, Inc. -- http://www.contech-cpi.com/-- makes, distributes, and installs civil engineering products related to environmental storm water, drainage, bridges, walls, and earth stabilization. Contech has dealers, distributors, or manufacturing plants in all 50 U.S. states and a national sales organization of more than 350 people. Investment firm Apax Partners owns Contech. As reported by the Troubled Company Reporter on June 6, 2011, Standard & Poor's revised its outlook on West Chester, Ohio-based Contech Construction Products, Inc., to negative from stable. "At the same time, we affirmed our ratings on Contech, including the 'B-' corporate credit rating," S&P stated. "The outlook revision reflects our assessment of Contech's limited near-term liquidity due to higher-than-expected borrowings on its revolving credit facility to support higher steel costs," said Standard & Poor's credit analyst Thomas Nadramia. "The outlook revision also reflects that Contech's operating environment is likely to remain difficult in the near term, resulting in reduced cushion in the company's minimum EBITDA covenant which governs its revolving credit facility and term loan. The minimum EBITDA requirement continues to step up over the next several quarters. However, our current expectation is that liquidity will likely remain at, or near, current reduced levels in the next two quarters until seasonal cash collections begin in the last quarter of 2011." CORD BLOOD: Incurs $1 Million Net Loss in Second Quarter -------------------------------------------------------- Cord Blood America, Inc. reported a net loss of $1.01 million on $1.43 million of revenue for the three months ended June 30, 2011, compared with a net loss of $1.57 million on $951,561 of revenue for the same period during the prior year. The Company also reported a net loss of $2.85 million on $2.88 million of revenue for the six months ended June 30, 2011, compared with a net loss of $4.15 million on $1.79 million of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $7.56 million in total assets, $8 million in total liabilities, and a $441,482 total stockholders' deficit. A full-text copy of the Form 10-Q filed with the U.S. Securities and Exchange Commission is available for free at: http://is.gd/7USBuV About Cord Blood America Based in Las Vegas, Nevada, Cord Blood America, Inc., is primarily a holding company whose subsidiaries include Cord Partners, Inc., CorCell Co. Inc., CorCell Ltd.; CBA Professional Services, Inc. D/B/A BodyCells, Inc.; CBA Properties, Inc.; and Career Channel Inc, D/B/A Rainmakers International. Cord specializes in providing private cord blood stem cell preservation services to families. BodyCells is a developmental stage company and intends to be in the business of collecting, processing and preserving peripheral blood and adipose tissue stem cells allowing individuals to privately preserve their stem cells for potential future use in stem cell therapy. Properties was formed to hold the corporate trademarks and other intellectual property of CBAI. Rain specializes in creating direct response television and radio advertising campaigns, including media placement and commercial production. The Company reported a net loss attributable to Cord Blood America of $8.09 million on $4.13 million of revenue for the year ended Dec. 31, 2010, compared with a net loss attributable to Cord Blood of $9.77 million on $3.24 million of revenue during the prior year. As reported by the TCR on April 5, 2011, Rose, Snyder & Jacobs, in Encino, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has sustained recurring operating losses, continues to consume cash in operating activities, and has insufficient working capital and an accumulated deficit at Dec. 31, 2010. CORDIA IP: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Cordia IP Corp. 222 Purchase Street, #206 Rye, NY 10580 Bankruptcy Case No.: 11-23631 Chapter 11 Petition Date: August 12, 2011 Court: United States Bankruptcy Court Southern District of New York (White Plains) Judge: Robert D. Drain Debtor's Counsel: Gerald Hecht, Esq. GERALD HECHT & ASSOCIATES 30 Main Street, Suite 202 Danbury, CT 06810 Tel: (203)792-3203 Scheduled Assets: $6,869,367 Scheduled Debts: $14,912,887 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nysb11-23631.pdf The petition was signed by Al Minella, president/director. Affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- Cordia Communications Corp. 11-06493 05/01/11 Cordia Communications Corp. of Virginia 11-06494 05/01/11 MyTel Co., Inc. 11-06495 05/01/11 Midwest Marketing Group, Inc. 11-06496 05/01/11 Northstar Telecom, Inc. 11-06497 05/01/11 COUGAR OIL: Posts C$1.5 Million Net Loss in 2nd Quarter ------------------------------------------------------- Cougar Oil and Gas Canada, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of C$1.53 million on C$536,578 of oil & gas sales for the three months ended June 30, 2011, compared with a net loss of C$384,347 on C$968,262 of oil & gas sales for the same period last year. The Company reported a net loss of C$3.38 million on C$1.24 million of oil & gas sales for the six months ended June 30, 2011, compared with a net loss of C$684,294 on C$1.72 million of oil & gas sales for the same period last year. The Company's balance sheet at June 30, 2011, showed C$14.33 million in total assets, C$14.07 million in total liabilities, and stockholders' equity of C$262,937. RBSM, LLP, in New York, expressed substantial doubt about Cougar Oil and Gas Canada's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered recurring losses since its inception and has a working capital deficiency. A copy of the Company's interim financial statements for the 2nd quarter ended June 30, 2011, is available at http://is.gd/1qwiea Headquartered in Calgary, Canada, Cougar Oil and Gas Canada, Inc., formerly Ore-More Resources, Inc., was incorporated under the laws of the Province of Alberta, Canada on June 20, 2007. The Company's principal activity is in the exploration, development, production and sale of oil and natural gas. The Company's main operations are currently in the Alberta and British Columbia provinces of Canada. CROSS BORDER: Stark Quits as CFO; Ex-TXCO Stephenson Takes Over --------------------------------------------------------------- Mark Stark resigned from serving as Cross Border Resources, Inc.'s principal financial officer, secretary and treasurer to pursue other business interests. On Aug. 10, 2011, Nancy S. Stephenson was appointed as the Company's Principal Accounting Officer, Secretary and Treasurer. Ms. Stephenson is 57 years old and brings to the Company over thirty years of accounting experience, primarily in publicly traded companies in the energy business. From March 2003 to February 2010, she served as Compliance Reporting Manager for TXCO Resources Inc., a public company not affiliated with Cross Border Resources, Inc. As Compliance Reporting Manager, she assisted with the preparation of financial statements and was responsible for TXCO Resources, Inc.'s periodic reporting compliance with the Securities and Exchange Commission. Since March 2010, she has provided consulting services relating to periodic reporting with the SEC on a project basis for various companies. Ms. Stephenson holds a BBA in Accounting from the University of Houston and is a Certified Public Accountant. The Company will pay Ms. Stephenson a monthly salary of $10,000 per month. Ms. Stephenson will receive no other cash or noncash compensation and no employee benefits other than four weeks of paid vacation annually. Ms. Stephenson's employment is at-will and not for any specified term. Ms. Stephenson began providing consulting services to the Company in May 2011. From that date until her appointment on Aug. 10, 2011, the Company has paid or owes consulting fees to Ms. Stephenson equal to approximately $16,000 in the aggregate. About Cross Border Resources Cross Border Resources, Inc. f/k/a Doral Energy Corp. (OTC BB: DRLY) -- http://www.DoralEnergy.com/-- is a licensed oil and gas operator in the state of New Mexico. The Company is headquartered in Midland, Texas. The Company's balance sheet at March 31, 2011, showed $24.91 million in total assets, $11.98 million in total liabilities, and $12.93 million in total stockholders' equity. As reported in the Troubled Company Reporter on Nov. 23, 2010, MaloneBailey, LLP, in Houston, Texas, expressed substantial doubt about Doral Energy's ability to continue as a going concern following the Company's results for the fiscal year ended July 31, 2010. The independent auditors noted that the Company has negative working capital and recurring losses from operations. CROWN EQUITY: Reports $1.5 Million Net Income in 2nd Quarter ------------------------------------------------------------ Crown Equity Holdings Inc. filed its quarterly report on Form 10- Q, reporting net income of $1.5 million on $1.0 million of revenue for the three months ended June 30, 2011, compared with a net loss of $74,612 on $349,212 of revenue for the same period last year. The Company reported net income of $29,775 on $1.4 million of revenue for the six months ended June 30, 2011, compared with a net loss of $201,658 on $673,988 of revenue for the same period last year. The net income for the three and six month periods ending June 30, 2011, consisted of operating income of $609,587 and $166,448, respectively. This compared to operating losses of $35,216 and $26,739 for the same periods in 2010. The Company incurred unrealized gains in the three months ending June 30, 2011, of $924,938 compared to unrealized losses of $35,170 for the three month in 2010. The Company incurred unrealized losses of $112,866 for the six months ended June 30, 2011, and $169,195 for the three month period in 2010. The Company's balance sheet at June 30, 2011, showed $2.9 million in total assets, $601,382 in total liabilities, and stockholders' equity of $2.3 million. MaloneBailey, LLP, in Houston, expressed substantial doubt about Crown Equity's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has historically suffered losses from operations. A copy of the Form 10-Q is available at http://is.gd/SmoHoT Las Vegas, Nev.-based Crown Equity Holdings Inc. (OTC BB: CRWE) -- http://www.crownequityholdings.com/-- was incorporated in August 1995 in Nevada. The Company provides various consulting services to companies and individuals dealing with corporate structure and operations globally. The Company also provides public relations and news dissemination for publicly and privately held companies. CROWNROCK: Moody's Assigns Caa2 Rating to $150MM Notes Offering --------------------------------------------------------------- Moody's investors Service assigned a Caa2 rating to CrownRock, L.P.'s proposed $150 million offering of senior unsecured notes. Its non-operating financing subsidiary CrownRock Finance, Inc. is a co-issuer of these notes. Moody's also assigned a Caa1 Corporate Family Rating (CFR) and a Caa1 Probability of Default (PDR) rating to the company. The rating outlook is stable. RATING RATIONALE "CrownRock's Caa1 CFR rating is restrained by its small, highly concentrated reserves compared to similarly rated peers, but also takes into account the rising production from its acreage in the oil-rich Wolfberry play," says Moody's vice president Mihoko Manabe. The company is a private exploration and production (E&P) company, jointly owned by Lime Rock Partners, a private equity firm, and EQ Holdings, controlled by members of senior management and employees. CrownRock's operations are concentrated in the Permian Basin in West Texas (about 80% of production and 90% of reserves), mostly in the Wolfberry oil shale formation. The rest of its production and reserves are located in the Paradox Basin in Utah and San Juan Basin in New Mexico. CrownRock is one of the smallest E&P companies that Moody's rates, with proven reserves of 39.5 million barrels-of-oil-equivalent (BOE) as of July 1, 2011. A notably high proportion (74%) of that is undeveloped, requiring an estimated $377 million of capital investment to bring those reserves to production. Its low base of production (average daily production was roughly 3,017 BOE per day in the June 2011 quarter) is an indicator of the company's short operating history and early stage in its development. CrownRock currently benefits from being weighted toward crude oil, which comprises about two-thirds of both its proven reserves and production. CrownRock will apply the proceeds from this debut debt offering to accelerate its drilling program in the Wolfberry play. It could also acquire more acreage in the area. This debt as of July 1, 2011, however, is substantial based on its very low rate of current production (about $50,311 debt-to-average daily production, among the highest in Moody's peer group), and the rating is based on that leverage declining rapidly as production rises as a result of this investment. The company has an aggressive plan to more than double production from 1,900 BOE as of March 31, 2011 by end of 2012. If the company meets its forecast, the increase in production would more than halve its debt-to-average daily production to below $40,000 to fall more in line with similarly rated peers. While CrownRock plans to outspend its cash flows at least through 2012, robust realizations in the prevailing strong oil price environment, together with cash from this debt issue is expected to provide adequate liquidity for the drilling program the company currently contemplates during this period. The company also has a committed credit facility with a $57 million borrowing base. CrownRock has hedged a sizable portion of its forecasted proved production below current spot prices, but its cash margins should still be sufficient to cover its full-cycle costs. The stable outlook is based on CrownRock having adequate liquidity over the next 12 to 18 months. The stable outlook is also subject to the company rapidly improving its scale and leverage metrics from its accelerated drilling program for its Wolfberry acreage. CrownRock could be upgraded if rising production lowers debt-to- average daily production to below $30,000 BOE and proved developed reserves grow to exceed 30 million BOE. Conversely, CrownRock could be downgraded if the company fails to maintain adequate liquidity and falls short on its drilling program so that its debt-to-average daily production remains around $50,000 BOE by year-end 2012. The rating for the senior notes reflects both the overall probability of default of the company, to which Moody's assigns a PDR of Caa1, and a loss given default of LGD 4, 63%. In accordance with Moody's Loss Given Default (LGD) Methodology, the Caa2 rating of the senior unsecured notes reflects their junior position in CrownRock's capital structure to borrowings under the senior secured credit facility. This is the first time that Moody's has rated CrownRock's debt obligations. The principal methodology used in rating CrownRock was the Independent Exploration and Production (E&P) Industry Methodology, published December 2008. Headquartered in Midland, Texas, CrownRock, L.P. is a privately held limited partnership that engages in the exploration and production of crude oil and natural gas in Texas, New Mexico, and Utah. CUI GLOBAL: Incurs $327,000 Net Loss in Second Quarter ------------------------------------------------------ CUI Global, Inc., formerly known as Waytronx, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a consolidated net loss of $327,405 on $9.87 million of total revenue for the three months ended June 30, 2011, compared with a consolidated net loss of $2.18 million on $9.99 million of total revenue for the same period during the prior year. The Company also reported a consolidated net loss of $246,362 on $19.42 million of total revenue for the six months ended June 30, 2011, compared with a consolidated net loss of $3.35 million on $16.52 million of total revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $35.68 million in total assets, $23.75 million in total liabilities, $12.20 million in total stockholders' equity, and a $278,472 noncontrolling interest. A full-text copy of the Form 10-Q is available for free at: http://is.gd/hfGoq9 About CUI Global Tualatin, Ore.-based CUI Global, Inc., formerly known as Waytronx, Inc., is a platform company dedicated to maximizing shareholder value through the acquisition, development and commercialization of new, innovative technologies. As reported by the TCR on April 8, 2011, Webb & Company, in Boynton Beach, Florida, expressed substantial doubt about CUI Global's ability to continue as a going concern. The independent auditors noted that the Company has a net loss of $7,015,896, a working capital deficiency of $675,936 and an accumulated deficit of $73,596,738 at Dec. 31, 2010. The Company reported a net loss of $7.5 million on $40.9 million of revenues for 2010, compared with a net loss of $16.0 million on $28.9 million of revenues for 2009. CUMULUS MEDIA: Stephen Schwarzman Owns 9.2% of Class A Shares ------------------------------------------------------------- In a Schedule 13D filing with the U.S. Securities and Exchange Commission, Stephen A. Schwarzman and his affiliates disclosed that they beneficially own 3,315,238 shares of Class A common stock of Cumulus Media Inc. representing 9.2% of the shares outstanding. A full-text copy of the regulatory filing is available for free at http://is.gd/9i7gpg 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. CURSTIS NELSON: Creditors Oppose Plan, Debt Discharge ----------------------------------------------------- Jim Hammerand at Minneapolis/St. Paul Business Journal reports that Curtis Carlson Nelson's creditors are accusing him of fraud as the court-appointed trustee in his bankruptcy case seeks to liquidate his assets. According to the report, the creditors hope their claims will convince a bankruptcy judge to saddle Nelson with his debts. Facing liabilities of $41.25 million, Mr. Nelson has no job, no source of income and has been cut off from "substantial" family trusts, U.S. Trustee's Office attorney Michael Fadlovich said in a filing that seeks to sell Nelson's assets to pay creditors, according to the report. The report adds that Edina-based Crown Bank was the first to ask U.S. Bankruptcy Judge Robert Kressel not to discharge Mr. Nelson's debt. The bank, which secured a $3.8 million judgment against Nelson, argues that the law doesn't allow Nelson's fraudulently incurred debt to be forgiven through bankruptcy proceedings. Crown has alleged that Nelson overstated his wealth to obtain loans from the bank. Three other creditors, the Business Journal relates, have followed the bank's lead, all alleging that Nelson deceived them and shouldn't have his debts forgiven. Minneapolis investors Jordan Family LLC, according to the report, said Mr. Nelson provided false financial statements and inflated the value of loan collateral by millions of dollars. Minneapolis- based Fulcrum Consulting accused Nelson of misrepresenting his company's financial condition and writing bad checks. Mr. Nelson's plan for reorganization is due to the court on Sept. 22, 2011. A hearing on the liquidation request is scheduled for the week after that. About Curtis Nelson Curtis Nelson filed a Chapter 11 petition (Bankr. D. Minn. Case No. 11-43113) on May 2, 2011, disclosing assets of $4.24 million, and liabilities of $41.25 million. He has tapped Thomas G. Wallrich, Esq., at Hinshaw & Culbertson LLP, as counsel in the Chapter 11 case. The Debtor was hospitalized with what police called a mental health crisis in March 2011. That followed a $3.8 million judgment entered against Mr. Nelson for money owed to Edina-based Crown Bank and the bankruptcy of his automotive marketing company. Mr. Nelson also owes $7 million to a trust in the name of his grandfather and Carlson Cos. founder, Curtis L. Carlson, and $3.05 million to JPMorgan Chase Bank for the mortgage on two Minnetonka properties. Mr. Nelson owns Curtis Co. One LLC, subsidiaries of which include Curt Co. Investments LLC, CCN and MAN Properties LLC, Curt Co. Customer LLC, Curt Co. Real Estate LLC, Curt Co. Condos LLC, Curt Co. Commodities LLC, Moccia Inc., Exponential Fund One LP, Exponential Funds One LLC and 72.55% of Visible Customer Holdings LLC. DAEWOO MOTOR: Ariz. Court Rules in Lawsuit v. Korean Parent ----------------------------------------------------------- District Judge Robert E. Jones denied the defendant's motion for summary judgment in the lawsuit, DAEWOO MOTOR AMERICA INCORPORATED, a Delaware corporation, named as Cross Claimant, Plaintiff, v. DAEWOO MOTOR COMPANY LIMITED, a foreign entity, named as Cross Defendant, Defendant, No. 2:10-cv-00653 (D. Ariz.). Daewoo Motor America, Inc., sued Daewoo Motor Company, Ltd., seeking, in essence, a declaration that DWMC must indemnify DMA for all product liability expenses, including attorney fees and costs, that DMA incurred defending Resende v. The Cooper Tire & Motor Company, et al., Maricopa County Superior Court Case No. CV2004-009382. DMA originally asserted the cross-claim in Resende; after DWMC settled that action, the cross-claim proceeded separately and on March 24, 2010, DWMC removed the action to federal court. DWMC sought summary judgment arguing DMA's claims are barred by the doctrine of claim preclusion, or res judicata, based on the Findings of Fact and Conclusions of Law and the Judgment issued in DMA's Chapter 11 bankruptcy case in the United States Bankruptcy Court, Central District of California, Case No. 02-24411 (adversary Case No. 2:03-ap-0-2155-BB). A copy of Judge Jones' Aug. 10, 2011 Opinion and Order is available at http://is.gd/XOda13from Leagle.com. Daewoo Motor America is represented in the lawsuit by: Frank M. Fox, Esq. Thomas C. Hall, Esq. CAVANAGH LAW FIRM PA Phoenix, AZ Tel: 602-322-4063 Fax: 602-322-4100 E-mail: ffox@cavanaghlaw.com thall@cavanaghlaw.com - and - T. Steven Har, Esq. DUANE MORRIS LLP 1540 Broadway New York, NY 10036-4086 Tel: 212-692-1055 Fax: 212-202-6040 E-mail: TSHar@duanemorris.com Attorneys for Daewoo Motor Company Limited are: Larry R. Schmadeka, Esq. LEE HONG DEGERMAN KANG & WAIMEY PC 660 S. Figueroa Street, Suite 2300 Los Angeles, CA 90017 Tel: (213) 623-2221 E-mail: lschmadeka@lhlaw.com - and - Linda H. Mullany, Esq. Timothy I. McCulloch, Esq. Sean M. Carroll, Esq. 101 W. Broadway, Suite 2000 San Diego, CA 92101 GORDON & REES LLP Phoenix, AZ 85003-1736 Tel: (619) 230-7412 E-mail: lmullany@gordonrees.com Daewoo Motor America, Inc., sought chapter 11 protection (Bankr. C.D. Calif. Case No. 02-24411) on May 16, 2002, listing more than $100 million in debts and assets. Lawyers at Stutman Treister & Glatt APC, served as bankruptcy counsel. The Honorable Judge Sheri Bluebond of the U.S. Bankruptcy Court for the Central District of California, Los Angeles Division, presided over the bankruptcy proceedings. The Bankruptcy Court confirmed the company's reorganization plan, which became effective Oct. 16, 2003. DAIS ANALYTIC: Reports $791,000 Net Income in Second Quarter ------------------------------------------------------------ Dais Analytic Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting net income of $791,585 on $1.12 million of revenue for the three months ended June 30, 2011, compared with net income of $1.21 million on $1.01 million of revenue for the same period during the prior year. The Company also reported a net loss of $2.49 million on $1.98 million of revenue for the six months ended June 30, 2011, compared with a net loss of $817,652 on $1.41 million of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $2.97 million in total assets, $9.29 million in total liabilities and a $6.32 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/lF9Gvw About Dais Analytic Odessa, Fla.-based Dais Analytic Corporation has developed and patented a nano-structure polymer technology, which is being commercialized in products based on the functionality of these materials. The initial product focus of the Company is ConsERV, an energy recovery ventilator. The Company also has new product applications in various developmental stages. The Company reported a net loss of $1.43 million on $3.34 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $7.12 million on $1.53 million of revenue during the prior year. Cross, Fernandez & Riley LLP, in Orlando, Fla., expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's 2010 financial results. The independent auditors noted that the Company has incurred significant losses since inception and has a working capital deficit and stockholders' deficit of $2,861,448 and $6,722,092 at Dec. 31, 2010. DELTA PETROLEUM: To Hold "Say on Pay Vote" Annually --------------------------------------------------- At Delta Petroleum Corporation's annual meeting of stockholders held on July 12, 2011, Delta's stockholders voted on, among other matters, a proposal on the frequency of future shareholder advisory votes regarding compensation awarded to Delta's named executive officers. As previously reported the highest number of votes cast on the proposal, as well as a majority of the votes cast on the proposal, approved the frequency of the advisory stockholder vote to be annually. In light of these voting results and other factors considered by the board, Delta's board of directors has determined that Delta will conduct future shareholder advisory votes regarding compensation awarded to its named executive officers on an annual basis. The next required shareholder advisory vote on the frequency of future shareholder advisory votes regarding compensation awarded to named executive officers will be conducted at Delta's 2014 Annual Meeting of Stockholders. About Delta Petroleum Corp Delta Petroleum Corporation -- http://www.deltapetro.com/-- is an oil and gas exploration and development company based in Denver, Colorado. The Company's core area of operation is in the Rocky Mountain region, where the majority of its proved reserves, production and long-term growth prospects are located. Its common stock is listed on the NASDAQ Capital Market System under the symbol "DPTR." The Company reported a net loss of $30.26 million on $23.05 million of total revenue for the three months ended March 31, 2011, compared with a net loss of $15.99 million on $29.17 million of total revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $975.84 million in total assets, $489.14 million in total liabilities, current and long-term, and $486.70 million in total equity. As reported by the TCR on March 18, 2011, KPMG LLP, in Denver, Colorado, noted that due to continued losses and limited borrowing capacity the Company is evaluating sources of capital to fund the Company's near term debt obligations. "There can be no assurances that actions undertaken will be sufficient to repay obligations under the credit facility when due, which raises substantial doubt about the Company's ability to continue as a going concern." DEX MEDIA WEST: Bank Debt Trades at 22% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Dex Media West LLC is a borrower traded in the secondary market at 78.40 cents-on- the-dollar during the week ended Friday, Aug. 12, 2011, a drop of 3.24 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 450 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 24, 2014. The loan is one of the biggest gainers and losers among 72 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Dex Media West Dex Media West LLC is a subsidiary of Dex Media West, Inc., and an indirect wholly owned subsidiary of Dex Media, Inc. Dex Media is a direct wholly owned subsidiary of R.H. Donnelley Corporation. Dex Media West is the exclusive publisher of the official yellow pages and white pages directories for Qwest Corporation, the local exchange carrier of Qwest Communications International, Inc., in Arizona, Idaho, Montana, Oregon, Utah, Washington, and Wyoming. R.H. Donnelley Corp. and 19 of its affiliates, including Dex Media East LLC, Dex Media West LLC and Dex Media, Inc., filed for Chapter 11 protection (Bank. D. Del. Case No. 09-11833 through 09- 11852) on May 28, 2009, after missing a $55 million interest payment on its senior unsecured notes due April 15, 2009. James F. Conlan, Esq., Larry J. Nyhan, Esq., Jeffrey C. Steen, Esq., Jeffrey E. Bjork, Esq., and Peter K. Booth, Esq., at Sidley Austin LLP, in Chicago, Illinois, served as lead bankruptcy counsel to the Debtors. Attorneys at Young, Conaway, Stargatt & Taylor LLP, in Wilmington, Delaware, served as local counsel. Deloitte Financial Advisory Services LLP was the financial advisor and Lazard Freres & Co. LLC was the investment banker. The Garden City Group, Inc., was claims and noticing agent. The Official Committee of Unsecured Creditors tapped Ropes & Gray LLP as its counsel, Cozen O'Connor as Delaware bankruptcy co-counsel, J.H. Cohn LLP as its financial advisor and forensic accountant, and The Blackstone Group, LP, as its financial and restructuring advisor. The Debtors emerged from Chapter 11 bankruptcy proceedings at the end of January 2010. DIABETES AMERICA: Taps Woodrock & Co. as Investment Banker ---------------------------------------------------------- Diabetes America Inc. asks the U.S. Bankruptcy Court for the Southern District of Texas for permission to employ WoodRock & Co. as its investment banker to assist the Debtor in its attempts to explore strategic alternatives in connection with its formulation of a plan of reorganization-including a sale of the Debtor's operating assets. The firm will be paid a one-time nonrefundable financial advisory services fee of $50,000 in connection with developing the Debtor's financial memorandum and assisting the Debtor in pursuing available options. The Debtor assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Diabetes America Houston, Texas-based Diabetes America, Inc., fka Diabetes Centers of America, Inc., operates a network of 17 centrally-managed medical clinics that provide comprehensive outpatient medical care, primarily to patients with Type 1, Type 2 and Gestational Diabetes. The company's clinics are located in Texas and Houston and generate 51,000 patient visits per year. Diabetes America filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Case No. 10-41521) on Dec. 21, 2010. H. Joseph Acosta, Esq., and Micheal W. Bishop, Esq., at Looper Reed & McGraw, P.C., in Dallas; and Joshua Walton Wolfshohl, Esq., at Porter Hedges, L.L.P., in Houston, represent the Debtor as bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million as of the Petition Date. Judy A. Robbins, the U.S. Trustee for Region 7, appointed three members to the Official Committee of Unsecured Creditors in Diabetes America's Chapter 11 case. The Committee has tapped Butler, Snow, O'Mara, Stevens & Cannada, PLLC, as its counsel. DINEEQUITY INC: Bank Debt Trades at 4% Off in Secondary Market -------------------------------------------------------------- Participations in a syndicated loan under which DineEquity, Inc., is a borrower traded in the secondary market at 96.40 cents-on- the-dollar during the week ended Friday, Aug. 12, 2011, a drop of 3.43 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 25, 2017, and carries Moody's 'BB2' rating and Standard & Poor's 'BB-' rating. The loan is one of the biggest gainers and losers among 72 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About DineEquity DineEquity, Inc. (NYSE:DIN) -- http://www.dineequity.com/-- owns and operates two restaurant concepts: Applebee's Neighborhood Grill and Bar (Applebee's) in the bar and grill segment of the casual dining category of the restaurant industry, and International House of Pancakes (IHOP) in the family dining category of the restaurant industry. The Company's segments include franchise operations, company restaurant operations, rental operations and financing operations. Within each segment, as applicable, the Company operates two restaurant concepts: Applebee's and IHOP. As of December 31, 2010, the franchise operations segment consisted of 1,701 restaurants operated by Applebee's franchisees in the United States, one United States territory and 16 countries outside of the United States, and 1,493 restaurants operated by IHOP franchisees and area licensees in the United States, two United States territories and two countries outside of the United States. DineEquity posted net income of $348,000 on total segment revenues of $268.3 million for the second quarter ended June 30, 2011, as compared with net income $14.0 million on total segment revenues of $340.1 million for the prior year period. For the six months ended June 30, 2011, DineEquity posted net income of $30.0 million on total segment revenues of $568.5 million, as compared with net income $33.7 million on total segment revenues of $698.2 million for the prior year period. At June 30, 2011, DineEquity's unaudited balance sheet showed total assets of $2.66 billion, total liabilities of $2.53 billion, and total stockholders' equity of $126.2 million. DREIER LLP: Committee Seeks Invoice Payments from 3 More Clients ---------------------------------------------------------------- The Official Committee of Unsecured Creditors of Dreier LLP filed separate complaints against certain clients for unpaid balances for legal services rendered to the Defendants, plus interests and cost. The Committee relates that the invoices remain unpaid despite due demand. The outstanding balances of each Defendant, excluding interests and cost are: (i) Phoenix Derivatives Group, LLC, for $84,500; (ii) Terra Capital Partners, LLC, for $52,953; and (iii) Vo-Toys Inc., for $48,734. About Dreier LLP Marc Dreier founded New York-based law firm Dreier LLP -- http://www.dreierllp.com/-- in 1996. On Dec. 8, 2008, the U.S. Securities and Exchange Commission filed a suit, alleging that Mr. Dreier made fraudulent offers and sales of securities in several cities, selling fake promissory notes to hedge and other private investment funds. The SEC asserted that Mr. Dreier also distributed phony financial statements and audit opinions, and recruited accomplices in connection with that scheme. Mr. Dreier, currently in prison, was charged by the U.S. government for conspiracy, securities fraud and wire fraud (S.D.N.Y. Case No. 09- cr-00085). Dreier LLP sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 08-15051) on Dec. 16, 2008. Stephen J. Shimshak, Esq., at Paul, Weiss, Rifkind, Wharton & Garrison LLP, was tapped as counsel. The Debtor estimated assets of $100 million to $500 million, and debts between $10 million and $50 million in its Chapter 11 petition. Sheila M. Gowan, a partner with Diamond McCarthy, was appointed Chapter 11 trustee. Wachovia Bank National Association, the Chapter 11 trustee, and Steven J. Reisman as post-confirmation representative of the bankruptcy estate of 360networks (USA) Inc. signed a petition that put Mr. Dreier into bankruptcy under Chapter 7 on Jan. 26, 2009 (Bankr. S.D.N.Y. Case No. 09-10371). Mr. Dreier, 60, pleaded guilty to fraud and other charges in May 2009. The scheme to sell $700 million in fake notes unraveled in late 2008. Mr. Dreier is serving a 20-year sentence in a federal prison in Minneapolis. DULCES ARBOR: Court OKs Renterial for Maple Issues -------------------------------------------------- The Leif M. Clark of the U.S. Bankruptcy Court for the Western District of Texas authorized Dulces Arbor S. De R.L. De C.V. to employ Robert Renteria at Renteria Manqueros Abogados S.C. as special counsel. According to the Debtor, Mr. Renteria is already familiar with the facts and transactions under which Maple Commercial Finance Corporation acquired the lien claims it has been asserting against the Debtor. Mr. Renteria charges $240 per hour for this engagement. His compensation is to be limited to $5,000 per month plus 7.5% of the amount of any rent allocated. The Debtor assured the Court that Mr. Renteria is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Dulces Arbor Dulces Arbor, S. de R.L. de C.V., aka Dulces Arbor, S.A. de C.V., is a Mexican corporation that has been doing business for years in the greater El Paso-Ciudad Juarez area in Texas. It filed for Chapter 11 bankruptcy (Bankr. W.D. Tex. Case No. 11-31199) on June 22, 2011. Judge Leif M. Clark presides over the case. In its petition, the Debtor estimated assets of $10 million to $50 million, and debts of $1 million to $10 million. The petition was signed by Raymond Ducorsky, sole administrator. Mr. Ducorsky is also its largest unsecured creditor with a $2,300,000 claim. E-DEBIT GLOBAL: Inks Pact to Roll Out Mobile Payment Platforms -------------------------------------------------------------- E-Debit Global Corporation, in conjunction with its joint-venture with ebackup Inc., Capital Six Limited, announced its agreement with European and South African mobile Telco software and infrastructure provider IN-CORP AG's Canadian subsidiary MapleTel.com to roll out its mobile and internet based payment platforms. "After a comprehensive review with MapleTel president Johan Kok we find that we have a very dynamic opportunity to leverage our 12 years of PIN based financial transaction processing operational experience and our 2010 acquisition of DigiCoins Canada Inc. loyalty program and contactless technology with Maple Tel' telecom applications to initiate our E-Debit payment platform," E-Debit Chief Executive Doug Mac Donald said in a joint statement with ebackup Inc. President Rowland Perkins. "Our entry point and first priority is the immediate integration of our P2P (person to person) application and E-Debit's PIN based and micro payment capabilities into our new joint-venture," stated Johan Kok, President of MapleTel. "We are focused directly on a PIN secured Internet payment product and a subsequent related mobile payment solution built on E-Debits payment experience and suite of business operations currently in place. I anticipate a very quick Beta development and look to our current 250,000+ subscriber base in South Africa and South America for the initial large scale test/roll-out in tandem with a North American implementation," Mr. Kok added. "Our Alberta joint-venture is based on equal participation between E-Debit's and ebackup's Capital Six Limited with 50% ownership and 50% with MapleTel and incorporates exclusive processing agreements with E-Debit's wholly owned subsidiary and Interac member Westsphere Systems Inc," state Mr. Mac Donald. "Our secure on-line and mobile payment management and processing solution fills the nonexistent Canadian and international secured payment segment and the combination of ebackup's "cloud" based PCI compliant data centre, technical and back up support and E-Debit's "processing switch and micropayment system currently in place allows for a quick entry into this marketplace," Concluded Mr. Kok. 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. EDGEWORTH PROPERTIES: Case Summary & 8 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Edgeworth Properties, LLC 1755 18th Street, N.W. Washington, DC 20009 Bankruptcy Case No.: 11-26577 Chapter 11 Petition Date: August 12, 2011 Court: U.S. Bankruptcy Court District of Maryland (Greenbelt) Judge: Wendelin I. Lipp Debtor's Counsel: David E. Lynn, Esq. DAVID E. LYNN, P.C. 15245 Shady Grove Road, Suite 465 North Rockville, MD 20850 Tel: (301) 255-0100 Fax: (301) 255-0101 E-mail: davidlynn@verizon.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's eight largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/mdb11-26577.pdf The petition was signed by Mary L. Ross, sole member. Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Milestone Tarant, LLC 11-10038 01/03/11 ENTECH SOLAR: Posts $2.4 Million Net Loss in 2nd Quarter -------------------------------------------------------- Entech Solar, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $2.4 million on $62,000 of revenues for the three months ended June 30, 2011, compared with a net loss of $4.8 million on $30,000 of revenues for the same period last year. The Company reported a net loss of $4.6 million on $111,000 of revenues for the six months ended June 30, 2011, compared with a net loss of $11.1 million on $45,000 of revenues for the same period last year. The Company's balance sheet at June 30, 2011, showed $39.4 million in total assets, $4.7 million in total liabilities, $11.2 million of Series D-1 convertible preferred stock, and stockholders' equity of $23.5 million. As reported in the TCR on Marcy 29, 2011, EisnerAmper LLP, in Edison, New Jersey, expressed substantial doubt about Entech Solar's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered recurring losses and negative cash flows from operations. A copy of the Form 10-Q is available at http://is.gd/BNRWeQ Fort Worth, Tex.-based Entech Solar, Inc., develops innovative, patented solar technologies, including concentrating photovoltaic (CPV) systems for both ground and space power applications. The Company designs concentrating solar modules that produce electricity from sunlight as part of the SolarVolt(TM) product line. EQUIPMENT MANAGEMENT: Electro Rent to Buy Assets for $11.1-Mil. --------------------------------------------------------------- Electro Rent Corporation will acquire the assets of privately held Equipment Management Technology, Inc., a provider of electronic test equipment that filed for bankruptcy protection earlier this year, in a private sale through the U.S. Bankruptcy court. The stated purchase price is approximately $11.1 million in cash. The purchase price will be adjusted based on certain closing and post- closing changes in EMT's net accounts receivable, equipment inventory and revenue. The transaction, which is expected to close on or about August 19, 2011, has received U.S. Bankruptcy court approval. Electro Rent said it anticipates realizing substantial cost synergies as a result of the purchase, as it integrates EMT's equipment inventory and customer base and moves operations to Electro Rent's headquarters. The acquisition is expected to be immediately accretive to Electro Rent's earnings. "EMT's electronic test equipment business is well matched to our own," said Daniel Greenberg, Chairman and CEO of Electro Rent. "This strategic transaction will deepen our equipment portfolio to help ensure that we are continually surpassing our mutual customers' needs and expectations, while providing them with an expanded range of cost-effective solutions. We remain committed to sharing our strong history of service excellence and responsiveness with EMT's customers. "Our solid balance sheet provides us with considerable flexibility, allowing us to act quickly when strategic opportunities to drive growth arise. This acquisition will serve us well as we work toward becoming one of the world's most recognized test and measurement and telecommunications capital equipment business partners," Greenberg added. Based in Las Vegas, EMT rents, sells and leases new and used electronic test equipment primarily to the aerospace/defense industry. About Electro Rent Electro Rent Corporation -- http://www.ElectroRent.com/-- is one of the largest global organizations devoted to the rental, leasing and sales of general purpose electronic test equipment, personal computers and servers. About Equipment Management Las Vegas, Nevada-based Equipment Management Technology filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 11- 11816) on Feb. 9, 2011. Judge Linda B. Riegle presides over the case. Attorneys at The Schwartz Law Firm, Inc., represent the Debtor in its restructuring effort. The Debtor disclosed $9,244,571 in assets and $14,272,739 in liabilities. On March 16, 2011, the Court appointed Brian D. Shapiro as Chapter 11 trustee in the Debtor's case. EVERGREEN SOLAR: Files for Chapter 11 to Sell Assets ---------------------------------------------------- Evergreen Solar, Inc. had voluntarily filed a petition for relief under Chapter 11 of the U.S. Bankruptcy Code. The petition was filed in the U.S. Bankruptcy Court for the District of Delaware. In conjunction with the Chapter 11 filing, the Company entered into a restructuring support agreement with certain holders of more than 70% of the outstanding principal amount of the Company's 13% Convertible Senior Secured Notes, or the supporting noteholders. Pursuant to the restructuring support agreement, the supporting noteholders have agreed, subject to certain terms and conditions, to implement the restructuring to be effected through one or more sales of certain of the Company's assets pursuant to section 363 of the Bankruptcy Code, including the Company's String Ribbon(TM) wafer technology business assets. As part of the bankruptcy process the Company will undertake a marketing process and will permit all parties to bid on its assets, as a whole or in groups pursuant to section 363 of the Bankruptcy Code. The supporting noteholders have agreed to support the Company's restructuring by consenting to cash collateral usage pursuant to a budget during the sale process; and to support the costs of the Bankruptcy Case, including court approval of a plan of reorganization subsequent to the sale process. As part of the restructuring, an entity formed by the supporting noteholders, ES Purchaser, LLC, entered into an asset purchase agreement with the Company. ES Purchaser will serve as a "stalking-horse" and provide a "credit-bid" pursuant to the Bankruptcy Code for assets being sold. If higher or better offers for assets are not obtained, it is expected that most of the Company's assets will be acquired by ES Purchaser pursuant to the asset purchase agreement. The asset purchase agreement for the 363 sale is subject to Bankruptcy Court approval and other customary closing conditions. The Company has the requisite funding in hand to operate in Chapter 11 and will continue to operate but with additional operational changes necessary to continue to reduce expenses. "Since January, Evergreen Solar has been aggressively repositioning itself to fully leverage the potential our String Ribbon wafers can bring to high volume solar cell and module manufacturers as these customers are facing severe pressure to further reduce their total cost of manufacturing and particularly their wafer supply costs. The actions we are taking enable the continued development of an industry standard wafer using Evergreen's differentiated technology and thereby provide the lowest cost wafer to the growing solar industry," said Michael El- Hillow, the Company's President and Chief Executive Officer. "Chapter 11 will provide Evergreen Solar with the ability to maximize returns for our stakeholders through the proposed sale process. Importantly, we expect to continue our technology development without interruption during Chapter 11 and the sale process. Day-to-day operations will go on as usual as employees carry out their responsibilities and we will continue to pay our suppliers and vendors for goods and services received during this period," Mr. El-Hillow added. As part of Evergreen Solar's reorganization activities, the Company will reduce its United States and European workforce by about 65 people, including suspension of operations at its Midland, Michigan filament facility, and will have 50 people supporting development, 10 people in administration as well as 25 people supporting industry standard wafer development in Wuhan, China. The Company's Wuhan China manufacturing business is expected to continue depending on market demand while the Company engages in discussions with its investors in China regarding possible changes to that operation and its sources of financing, including the possibility of transitioning its operations to the Company's new industry standard wafer technology. Based upon the estimated value of the Company's assets, the assets are expected to be insufficient to satisfy all its obligations to its creditors. Accordingly, it is expected that no distributions will be made to holders of common stock and the common stock will be extinguished upon consummation of the Chapter 11 plan. About Evergreen Solar Evergreen Solar, Inc. -- http://www.evergreensolar.com/-- develops, manufactures and markets String Ribbon solar power products using its proprietary, low-cost silicon wafer technology. The Company's patented wafer manufacturing technology uses significantly less polysilicon than conventional processes. Evergreen Solar's products provide reliable and environmentally clean electric power for residential and commercial applications globally. FIREKEEPERS DEV'T: Moody's Affirms B2 Corporate; Outlook Positive ----------------------------------------------------------------- Moody's Investors Service changed FireKeepers Development Authority's rating outlook to positive from stable, while affirming its Corporate Family Rating (CFR) and $340 million senior notes due 2015 at B2. Moody's also revised the Probability of Default Rating (PDR) to B1 from B2, due to the shift in FDA's debt structure to a bond-only construct. Ratings affirmed: (LGD assessment adjusted) Corporate Family Rating -- B2 $340 million 13.875% senior secured notes due May 2015 -- B2 (LGD 4, 65%) Rating revised: Probability of Default -- to B1 from B2 Rating outlook: Positive RATINGS RATIONALE The outlook change to positive reflects FireKeepers' consistently strong operating performance despite the recently increased competition from Gun Lake Casino, conservative financial leverage and significant financial flexibility in part afforded by its substantial unrestricted cash balance. "The positive outlook also suggests the possibility for a one-notch rating upgrade in the next 6-9 months," commented Moody's lead analyst, John Zhao. However, Moody's notes that competition in FireKeepers' primary and secondary markets will likely increase further over the near term, a rating factor that Moody's will continue to monitor. In particular, the further ramp-up of the Gun Lake Casino in Wayland, Michigan that opened in February 2011(about 60 miles away from FireKeepers), the future opening of a new tribal casino in Hartford, MI (about 60 miles west of FireKeepers, owned by Pokagon Band), the expansion project at the Four Winds Casino Resort also owned by Pokagon, and the opening of a large commercial casino in Toledo, OH in 2012, all will likely have some impact on FireKeepers' future revenue and profitability due to some overlapping of customer base. Therefore, a rating upgrade is contingent upon FDA's proven ability to sustain its operating performance and credit metrics at current levels in the face of rising competition. A rating upgrade would also require the Authority to maintain a conservative long-term financial policy with respect to tribal distributions. Quantitatively, total debt/EBITDA should remain consistently below 3.0x and EBITDA/Interest approach 3.0x. Negative pressure on the rating is not currently expected in view of today's action. However, the outlook could be stabilized if FDA's operating profit is affected more negatively and credit metrics deteriorate from current expectations. The revision of PDR to B1 from B2 reflects the lowering of the family recovery assumption to 35% from 50% per Moody's Loss Given Default methodology, due to the shift in FDA's debt structure to a bond-only construct after the previously outstanding equipment loan was paid off. The principal methodology used in rating FireKeepers Development Authority was the Global Gaming Industry Methodology published in December 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. The FireKeepers Development Authority ("FDA") is an unincorporated instrumentality and political subdivision of the Nottawaseppi Huron Band of the Potawatomi ("The Tribe"), established by the Tribe to own, develop, construct and operate the FireKeepers Casino. The casino, which opened in August 2009, is located near the city of Battle Creek, Michigan. It features 2,801 Class III slot machines, 12 poker tables and 67 table games. The Tribe is a federally recognized Indian tribe, restored to such status by the U.S. government effective 1996. FORMATECH, INC.: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Formatech, Inc. 200 Bulfinch Drive Andover, MA 01810 Bankruptcy Case No.: 11-43424 Chapter 11 Petition Date: August 12, 2011 Court: U.S. Bankruptcy Court District of Massachusetts (Worcester) Judge: Melvin S. Hoffman Debtor's Counsel: Barry C. Richmond, Esq. LAW OFFICE OF BARRY C. RICHMOND 210 Washington Street Woburn, MA 01801 Tel: (781) 935-2143 E-mail: richmondlaw@hotmail.com Estimated Assets: $500,001 to $1,000,000 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 Indu S. Javeri, president. FREEMAN PROPERTIES: Case Summary & Unsecured Creditor ----------------------------------------------------- Debtor: Freeman Properties LLC 1119 Leighton Avenue Anniston, AL 36207 Bankruptcy Case No.: 11-42083 Chapter 11 Petition Date: Court: United States Bankruptcy Court Northern District of Alabama (Anniston) Judge: James J. Robinson Debtor's Counsel: Mark Russell, Esq. LABUDDE & RUSSELL P.O. Box 1924 Anniston, AL 36202 Tel: (256) 238-0887 E-mail: markrussellesq@cableone.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 In its list of 20 largest unsecured creditors, the Company placed only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Compass Bank $835,793 P.O. Box 830629 Birmingham, AL 35283 The petition was signed by R. Bryan Freeman, president. FUSION TELECOMMUNICATIONS: Borrows $270,000 from Marvin Rosen ------------------------------------------------------------- In separate transactions, Fusion Telecommunications International, Inc., borrowed an aggregate of $270,000 from Marvin S Rosen, a director of the Company. The notes (a) are payable on demand in full upon ten days notice of demand from the lender, (b) bear interest on the unpaid principal amount at the rate of 3.25% per annum, and (c) grant the lender a collateralized security interest, pari passu with other lenders, in the Company's accounts receivable. The proceeds of the notes are to be used primarily for general corporate purposes. About Fusion Telecommunications New York City-based Fusion Telecommunications International, Inc. (OTC BB: FSNN) is a provider of Internet Protocol ("IP") based digital voice and data communications services to corporations and carriers worldwide. As reported by the TCR on April 26, 2011, Rothstein, Kass & Company, P.C., in Roseland, New Jersey, expressed substantial doubt about Fusion Telecommunications' ability to continue as a going concern. The independent auditors noted that the Company the Company has negative working capital balances, incurred negative cash flows from operations and net losses since inception, and has limited capital to fund future operations. Fusion Telecommunications reported a net loss of $5.8 million on $41.8 million of revenues for 2010, compared with a net loss of $9.6 million on $40.9 million of revenues for 2009. The Company's balance sheet at March 31, 2011, showed $4.42 million in total assets, $13.55 million in total liabilities, and a $9.12 million total stockholders' deficit. GALP CNA: Affiliate Wentwood Rollingbrook's Ch. 11 Case Dismissed ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Texas dismissed the Chapter 11 case of Wentwood Rollingbrook, L.P., a debtor-affiliate of GALP CNA Limited Partnership. As reported in the Troubled Company Reporter on June 27, 2011, Judy A. Robbins, the U.S. Trustee for the Region 7, asked the court to dismiss, or convert to Chapter 7, the Chapter 11 reorganization case of Wentwood Rollingbrook. The U.S. Trustee noted that Wentwood does not have the ability to reorganize, has not filed a disclosure statement or plan, and is deficient in filing monthly operating reports. About GALP CNA Houston, Texas-based GALP CNA Limited Partnership filed for Chapter 11 bankruptcy protection on Oct. 4, 2010 (Bankr. S.D. Tex. Case No. 10-38975). The Debtor estimated its assets and debts at $1 million to $10 million at the Petition Date. GALP CNA's case is jointly administered with that of Wentwood Woodside I, L.P., Wentwood Roundhill I, L.P., Wentwood Rollingbrook, L.P., and GALP Cypress Limited Partnership. GALP CNA is the lead case. Houston, Texas-based GALP CNA Limited Partnership filed for Chapter 11 bankruptcy protection on Oct. 4, 2010 (Bankr. S.D. Tex. Case No. 10-38975). The Debtor estimated its assets and debts at $1 million to $10 million at the Petition Date. Houston, Texas-based Wentwood Woodside filed for Chapter 11 bankruptcy protection on Oct. 4, 2010 (Bankr. S.D. Tex. Case No. 10-38981). It estimated its assets at $10 million to $50 million and debts at $1 million to $10 million at the Petition Date. Houston, Texas-based Wentwood Roundhill filed for Chapter 11 bankruptcy protection on Oct. 4, 2010 (Bankr. S.D. Tex. Case No. 10-38984. It estimated its assets and debts at $1 million to $10 million at the Petition Date. Houston, Texas-based Wentwood Rollingbrook filed for Chapter 11 bankruptcy protection on Oct. 4, 2010 (Bankr. S.D. Tex. Case No. 10-38988. It estimated its assets and debts at $1 million to $10 million at the Petition Date. Houston, Texas-based GALP Cypress filed for Chapter 11 bankruptcy protection on Oct. 4, 2010 (Bankr. S.D. Tex. Case No. 10-38991). It estimated its assets at $10 million to $50 million and debts at $1 million to $10 million at the Petition Date. Matthew Hoffman, Esq., at the Law Offices of Matthew Hoffman, P.C., assists the Debtors in their restructuring efforts. GAMETECH INT'L: Common Stock Stops Trading on Nasdaq ---------------------------------------------------- GameTech International, Inc., announced its common stock ceased trading on The Nasdaq Capital Market effective Aug. 11, 2011. The Company has been informed that it is eligible for trading on the OTCQB Marketplace effective with the market open on Aug. 11, 2011. The Company's ticker symbol will remain as "GMTC". Operated by OTC Markets Group Inc., the OTCQB is a market tier for OTC traded companies that are registered and reporting with the Securities and Exchange Commission. Investors will be able to view Real Time Level II stock quotes for the Company at http://www.otcmarkets.comunder the ticker symbol GMTC. As previously disclosed in the Company's Current Report on Form 8-K filed with the SEC on Aug. 8, 2011, GameTech received notification from The Nasdaq Stock Market on Aug. 2, 2011, stating that the Company had failed to satisfy Nasdaq's minimum bid requirement for continued listing and, as a result, the Company's common stock would be suspended from listing at the open of business on Aug. 11, 2011, unless the Company pursued an appeal with the Nasdaq Hearings Panel on or before Aug. 9, 2011. The Company determined not to appeal Nasdaq's decision. About GameTech International Based in Reno, Nevada, GameTech develops and manufactures gaming entertainment products and systems. GameTech holds a significant position in the North American bingo market with its interactive electronic bingo systems, portable and fixed-based gaming units, and complete hall management modules. It also holds a significant position in select North American VLT markets, primarily Montana, Louisiana, and South Dakota, where it offers video lottery terminals and related gaming equipment and software. It also offers Class III slot machines and server-based gaming systems. The Company reported a net loss of $20.4 million on $35.2 million of revenue for the 52 weeks ended Oct. 31, 2010, compared with a net loss of $10.5 million on $47.8 million of revenue for the 52 weeks ended Nov. 1, 2009. Piercy Bowler Taylor & Kern, in Las Vegas, Nevada, expressed substantial doubt about GameTech International, Inc.'s ability to continue as a going concern. The independent auditors noted that the Company has suffered reoccurring losses from operations and has been unable to extend the maturity of its debt, or raise additional capital necessary to execute its business plan. The Company's balance sheet at May 1, 2011, showed $40.19 million in total assets, $32.33 million in total liabilities and $7.86 million in total stockholders' equity. GENERAL MARITIME: F. Johnson stake Down to "Less Than 1%" --------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Frank Lagrange Johnson and his affiliates disclosed that they beneficially own 72,500 shares of common stock of General Maritime Corporation representing less than 1% of the shares outstanding, based upon 121,525,048 shares outstanding as of Aug. 5, 2011, as reported in the Company's quarterly report on Form 10-Q, filed with the Securities and Exchange Commission on Aug. 8, 2011. As previously reported by the TCR on July 11, 2011, Mr. Johnson disclosed beneficial ownership of 7,997,448 shares of common stock or 6.8% equity stake. A full-text copy of the regulatory filing is available at no charge at http://is.gd/2CCId3 About General Maritime Corp. Based in New York City, General Maritime Corporation through its subsidiaries provides international transportation services of seaborne crude oil and petroleum products. The Company's fleet is comprised of VLCC, Suezmax, Aframax, Panamax and product carrier vessels. The Company operates its business in one business segment, which is the transportation of international seaborne crude oil and petroleum products. The Company's vessels are primarily available for charter on a spot voyage or time charter basis. The Company reported a net loss of $216.66 million on $387.16 million of voyage revenue for the year ended Dec. 31, 2010, compared with a net loss of $11.99 million on $350.52 million of voyage revenue during the prior year. The Company's balance sheet at June 30, 2011, showed $1.78 billion in total assets, $1.44 billion in total liabilities, and $339.32 million in total shareholders' equity. Deloitte & Touche LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditor noted that the Company requires additional financing in order to meet its debt obligations that will come due over the next year. In addition, the Company has current losses from operations, a working capital deficit and the expectation that certain of its loan covenants will not be achieved during 2011 without additional capital being raised, debt being refinanced or covenants waived or amended. * * * Standard & Poor's Ratings Services in December 2010 lowered its long-term corporate rating on General Maritime Corp. to 'CCC+' from 'B', and placed the ratings on CreditWatch with negative implications. At the same time, S&P lowered its ratings on the company's senior unsecured notes to 'CCC-', two notches below the new corporate credit rating; the recovery rating of '6', which indicates S&P's expectation that lenders will receive a negligible (0%-10%) recovery in a payment default scenario, remains unchanged. "The downgrade reflects General Maritime's weak liquidity, very limited financial covenant headroom (despite recent amendments), and deterioration in its financial profile," said Standard & Poor's credit analyst Funmi Afonja. "As of Sept. 30, 2010, General Maritime had no borrowing availability under its $749.8 million revolving credit facility and $8.7 million in unrestricted cash, after factoring financial covenant limitations. In S&P's opinion, the recent financial covenant amendments do not provide sufficient covenant headroom, and there is still a high probability of a covenant breach over the next quarter. If there is a covenant breach, lenders can require the immediate payment of all amounts outstanding. General Maritime's liquidity is further constrained by significant upcoming debt maturities, including $27.5 million in scheduled principal payments due in 2011 under its term loan, $50.1 million semiannual reduction on the revolver, beginning on April 26, 2011, and a bullet payment of $599.6 million in October 2012, when the facility expires. General Maritime also has a $22.8 million bridge loan facility that matures in October 2011. Cash interest payments on the bridge loan will increase if the company is unable to pay off the loan by Dec. 31, 2010." In the Dec. 22, 2010 edition of the TCR, Moody's Investors Service lowered its ratings of General Maritime Corporation: Corporate Family to B3 from B1, Probability of Default to Caa1 from B2 and senior unsecured to Caa2 from Caa1. Moody's also downgraded the Speculative Grade Liquidity rating to SGL-4 from SGL-3. The outlook is negative. The downgrade of the ratings reflects GenMar's tightening liquidity position as a result of ongoing weak tanker freight rates and upcoming debt maturities. These maturities include the recently arranged $22.8 million bridge loan due Oct. 21, 2011 ("Bridge Loan"), and two $50 million repayments (one each on April 26, 2011 and Oct. 26, 2011) that are due on the company's $750 million revolving credit facility that was almost fully drawn at Sept. 30, 2010. GENERAL MARITIME: OCM Marine Discloses 16.6% Equity Stake --------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, OCM Marine Holdings TP, L.P., and its affiliates disclosed that they beneficially own 24,183,484 shares of common stock of General Maritime Corporation representing 16.6% of the shares outstanding, based upon an aggregate of 145,708,532 shares of Common Stock outstanding, which includes (i) 121,525,048 shares of Common Stock outstanding as disclosed in the Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2011, and (ii) 24,183,484 shares of Common Stock issuable upon exercise of the Warrants. A full-text copy of the filing is available for free at http://is.gd/jhYXVY About General Maritime Corp. Based in New York City, General Maritime Corporation through its subsidiaries provides international transportation services of seaborne crude oil and petroleum products. The Company's fleet is comprised of VLCC, Suezmax, Aframax, Panamax and product carrier vessels. The Company operates its business in one business segment, which is the transportation of international seaborne crude oil and petroleum products. The Company's vessels are primarily available for charter on a spot voyage or time charter basis. The Company reported a net loss of $216.66 million on $387.16 million of voyage revenue for the year ended Dec. 31, 2010, compared with a net loss of $11.99 million on $350.52 million of voyage revenue during the prior year. The Company's balance sheet at June 30, 2011, showed $1.78 billion in total assets, $1.44 billion in total liabilities, and $339.32 million in total shareholders' equity. Deloitte & Touche LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditor noted that the Company requires additional financing in order to meet its debt obligations that will come due over the next year. In addition, the Company has current losses from operations, a working capital deficit and the expectation that certain of its loan covenants will not be achieved during 2011 without additional capital being raised, debt being refinanced or covenants waived or amended. * * * Standard & Poor's Ratings Services in December 2010 lowered its long-term corporate rating on General Maritime Corp. to 'CCC+' from 'B', and placed the ratings on CreditWatch with negative implications. At the same time, S&P lowered its ratings on the company's senior unsecured notes to 'CCC-', two notches below the new corporate credit rating; the recovery rating of '6', which indicates S&P's expectation that lenders will receive a negligible (0%-10%) recovery in a payment default scenario, remains unchanged. "The downgrade reflects General Maritime's weak liquidity, very limited financial covenant headroom (despite recent amendments), and deterioration in its financial profile," said Standard & Poor's credit analyst Funmi Afonja. "As of Sept. 30, 2010, General Maritime had no borrowing availability under its $749.8 million revolving credit facility and $8.7 million in unrestricted cash, after factoring financial covenant limitations. In S&P's opinion, the recent financial covenant amendments do not provide sufficient covenant headroom, and there is still a high probability of a covenant breach over the next quarter. If there is a covenant breach, lenders can require the immediate payment of all amounts outstanding. General Maritime's liquidity is further constrained by significant upcoming debt maturities, including $27.5 million in scheduled principal payments due in 2011 under its term loan, $50.1 million semiannual reduction on the revolver, beginning on April 26, 2011, and a bullet payment of $599.6 million in October 2012, when the facility expires. General Maritime also has a $22.8 million bridge loan facility that matures in October 2011. Cash interest payments on the bridge loan will increase if the company is unable to pay off the loan by Dec. 31, 2010." In the Dec. 22, 2010 edition of the TCR, Moody's Investors Service lowered its ratings of General Maritime Corporation: Corporate Family to B3 from B1, Probability of Default to Caa1 from B2 and senior unsecured to Caa2 from Caa1. Moody's also downgraded the Speculative Grade Liquidity rating to SGL-4 from SGL-3. The outlook is negative. The downgrade of the ratings reflects GenMar's tightening liquidity position as a result of ongoing weak tanker freight rates and upcoming debt maturities. These maturities include the recently arranged $22.8 million bridge loan due Oct. 21, 2011 ("Bridge Loan"), and two $50 million repayments (one each on April 26, 2011 and Oct. 26, 2011) that are due on the company's $750 million revolving credit facility that was almost fully drawn at Sept. 30, 2010. GENTA INC: Has $11-Mil. Q2 Net Loss, May Run Out of Cash in Q3 -------------------------------------------------------------- Genta Incorporated filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $11.58 million on $54,000 of net product sales for the three months ended June 30, 2011, compared with net income of $25.44 million on $76,000 of net product sales for the same period during the previous year. The Company also reported a net loss of $11.07 million on $107,000 of net product sales for the six months ended June 30, 2011, compared with a net loss of $141.17 million on $110,000 of net product sales for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $6.44 million in total assets, $19.10 million in total liabilities, and a $12.65 million total stockholders' deficit. At June 30, 2011, Genta had cash and cash equivalents totaling $5.2 million, compared with $12.8 million at Dec. 31, 2010. Net cash used in operating activities during the first six months of 2011 was $7.3 million, or approximately $1.2 million per month. Bankruptcy Warning Presently, with no further financing, the Company projects that it will run out of funds during the third quarter of 2011. The Company currently does not have any additional financing in place. If the Company is unable to raise additional funds, it could be required to reduce its spending plans, reduce its workforce, license one or more of its products or technologies that it would otherwise seek to commercialize, sell certain assets, or even declare bankruptcy. The Company said there can be no assurance that it can obtain financing, if at all, or raise such additional funds, on terms acceptable to it. A full-text copy of the Form 10-Q is available for free at: http://is.gd/haA8C9 About Genta Incorporated Berkeley Heights, New Jersey-based Genta Incorporated (OTC BB: GNTA) -- http://www.genta.com/-- is a biopharmaceutical company engaged in pharmaceutical (drug) research and development. The Company is dedicated to the identification, development and commercialization of novel drugs for the treatment of cancer and related diseases. EisnerAmper LLP, in Edison, New Jersey, expressed substantial doubt about Genta's ability to continue as a going concern following the 2010 financial results. The independent auditors noted that of the Company's recurring losses from operations, negative cash flows from operations and current maturities of convertible notes payable. Amper, Politziner & Mattia, LLP, in Edison, New Jersey, did not include a going concern explanatory paragraph in its audit report on the Company's financial statements for fiscal 2009. The Company reported a net loss of $167.3 million on $257,000 of sales for 2010, compared with a net loss of $86.3 million on $218,000 for 2009. GEORGE W. PARK: Court Closes Case; Orders Trustee Fees Be Paid -------------------------------------------------------------- In a final decree dated June 28, 2011, Chief U.S. Bankruptcy Judge John Waites ordered that the Chapter 11 case of Geo. W. Park Seed Co., Inc., is closed; and the Court's jurisdiction is ended except as provided in 11 U.S.C. Section 1142. All quarterly fees due and owing to the United States Trustee must be paid current through the date of the order. As reported in the TCR on Feb. 21, 2011, the Bankruptcy Court for the District of South Carolina confirmed the Plan of Reorganization filed by L. Stan Neely, the Chapter 11 trustee for Geo W. Park Seed Co. Inc., and its debtor-affiliates. As reported in the Troubled Company Reporter on Jan. 5, 2011, the Plan provides for the distribution of the remaining cash assets of the estate -- after payment to Wells Fargo and the Hachenbergers pursuant to a settlement -- to the general unsecured creditors, after payment in full of all administrative claims, payment in full of taxes owed to the County of Greenwood, and payment in full of priority unsecured claims. Wells Fargo and the Hachenbergers collectively have a first lien over all the assets that were sold to J&P Park Acquisitions Inc. Under the settlement, Wells Fargo and the Hachenbergers have agreed to receive payment of $6,773,275 in full satisfaction of their liens and other claims against the estate. Because the sale proceeds were not enough to pay the first liens in full, the liens of junior lienholders are unsecured, and the claims of the junior lienholders will be treated as general unsecured claims in the Plan. On August 23, 2010, the auction and sale hearing were conducted and competitive bidding ensued. The Court eventually approved the improved stalking horse bid by J&P Park as the highest and best offer for the assets, with a total gross consideration of approximately $12,800,000, including a cash payment of $8,264,095. Wells Fargo and the Hachenbergers have agreed, pursuant to the Settlement, to a carve-out of $2,500,000. The carve-out will be used to pay administrative claims, taxes to the County of Greenwood, and unsecured priority claims, with any remainder distributed to the general unsecured creditors. In addition, the plan will pay holders of general unsecured, owing $47,000,000 in aggregate, will be paid on a pro rata basis from estate funds remaining after all valid claims are paid. A full-text copy of the Disclosure Statement is available for free at http://ResearchArchives.com/t/s?71c5 About George W. Park Based in Greenwood, South Carolina, George W. Park Seed Co. Inc., along with four affiliates, filed for Chapter 11 protection on April 2, 2010 (Bankr. D. S.C. Lead Case No. 10-02431). R. Geoffrey Levy, Esq., represents the Company in its restructuring effort. In its schedules, the Company disclosed $8.33 million in assets and $44.79 million in liabilities. Jackson & Perkins-founded in 1872 and famous for its roses- became part of the Park Seed group in 2007. GIORDANO'S ENTERPRISES: Lender Seeks to Block Ex-Owner's Lawsuit ---------------------------------------------------------------- Dow Jones' DBR Small Cap reports that Fifth Third Bank, the biggest lender to the Giordano's pizza chain, has began challenging accusations from ousted owner John Apostolou that the bank and others conspired against him when he ran the restaurant company--injustices that Apostolou says warrant at least $120 million in personal injury damages for himself and his family. About Giordano's Enterprises Chicago, Illinois-based Giordano's Enterprises, Inc., was founded in 1974 in Chicago, Illinois, by two Argentinean immigrants, Efren and Joseph Boglio. In 1988, John and Eva Apostolou purchased control of Giordano's. Although this casual dining eatery offers a broad array of fine Italian cuisine, it is primarily know for its "Chicago's World Famous Stuffed Pizza". At present, Giordano's operates six company owned stores in Chicagoland, four joint venture stores, and thirty-five franchisee locations. In addition, Giordano's operates Americana Foods, Inc., located in Mount Prospect, Illinois, that serves as the commissary for the majority of food products purchased by the Illinois locations. An affiliated real estate holding company, Randolph Partners, LP, owns 12 restaurant buildings that are leased to four of the company-owned locations, two of the joint venture locations and six of the franchisee locations. The other 33 locations are leased from third party landlords; two for the Giordano's locations, two for the joint venture locations and 29 for the franchise locations. Giordano's is the lessee and subleases the restaurant facility for 22 of the 29 franchise third party leases. JBA Equipment Finance, Inc, another affiliated entity, leases restaurant equipment packages to eight franchisee locations. Giordano's Enterprises and 26 affiliates filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Lead Case No. 11-06098) on Feb. 16, 2011. Six additional affiliates filed for Chapter 11 protection on Feb. 17, 2011. Michael L. Gesas, Esq., David A. Golin, Esq., Miriam R. Stein, Esq., and Kevin H. Morse, at Arnstein & Lehr, LLP, in Chicago, serve as the Debtors' bankruptcy counsel. Giordano's Enterprises disclosed $59,387 in assets and $45,538,574 in liabilities as of the Chapter 11 filing. Certain of the Debtors owe Fifth Third Bank not than $13,560,662, pursuant to loans and financial accommodations, and $31,927,998 under a business loan as of the Petition Date. Fifth Third has agreed to provide DIP financing of up to $35,983,563 to the Debtors. Philip V. Martino has been appointed as Chapter 11 trustee in the Debtors' bankruptcy cases, at the behest of the U.S. Trustee. Mr. Martino filed a $3,000,000 bond. GLAZIER GROUP: Committee Has Nod for FTI as Financial Advisor ------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York has authorized the Official Committee of Unsecured Creditors in the Chapter 11 case of The Glazier Group, Inc., to retain and employ FTI Consulting, Inc., as its financial advisor, nunc pro tunc to Feb. 8, 2011. The Court is satisfied that FTI neither represents nor holds any interest adverse in connection with these cases and is a "disinterested person" as defined in Bankruptcy Code Section 101(14). FTI's retention is effective through Oct. 31, 2011 (the "End Date"), subject to further order of the Court. FTI will be compensated for its services based on its normal hourly rates, subject to periodic adjustments, as follows: Senior Managing Directors $780-$895 Directors/Managing Directors $560-$745 Consultants/Senior Consultants $280-$530 Administration/Associates $115-$230 FTI will not perform more than $62,500 worth of professional services, subject to further order of the Court. About The Glazier Group New York-based The Glazier Group, Inc., filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 10-16099) on Nov. 15, 2010. Frederick E. Schmidt, Esq., Joshua Joseph Angel, Esq., and Seth F. Kornbluth, Esq., at Herrick, Feinstein LLP, represent the Debtor in its restructuring effort. John Dunne of Renewal Ventures, LLC, is the Debtor's Chief Restructuring Officer ("CRO"). The Company disclosed assets of $15.2 million and liabilities of $26.8 million as of the Petition Date. Ronald J. Friedman, Esq., Katina Brountzas, Esq., and Sheryl P. Busell, Esq., at SilvermanAcampora LLP, in Jericho, New York, represent the Official Committee of Unsecured Creditors. FTI Consulting, Inc., serves as the Official Committee of Unsecured Creditors' financial advisor. GLOBAL FOOD: Posts $899,200 Net Loss in Second Quarter ------------------------------------------------------ Global Foods Technologies, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $899,162 on $11,872 of revenues for the three months ended June 30, 2011, compared with a net loss of $901,448 on $314,476 of revenues for the same period last year. The Company reported a net loss of $1.9 million on $101,438 of revenues for the six months ended June 30, 2011, compared with a net loss of $1.8 million on $635,800 of revenues for the same period last year. The Company's balance sheet at June 30, 2011, showed $2.2 million in total assets, $4.4 million in total liabilities, and a stockholders' deficit of $2.2 million. Squar, Milner, Peterson, Miranda & Williamson, LLP, in Newport Beach, California, expressed substantial doubt about Global Foods Technologies' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has an accumulated deficit of approximately $64.4 million at Dec. 31, 2010, has negative cash flow from operations of approximately $2.8 million for the year ended Dec. 31, 2010, and has negative working capital at Dec. 31, 2010. A copy of the Form 10-Q is available at http://is.gd/HuItAo Headquartered in Hanford, California, Global Food Technologies, Inc., is a life sciences company focused on food safety processes for the food processing industry by using its proprietary scientific processes to substantially increase the shelf life of commercially packaged seafood and to make those products safer for human consumption. The Company has developed a process using its technology called the "iPuraT Food Processing System". The System is installed in processor factories in foreign countries with the product currently sold in the United States. GOB WP: Case Summary & 5 Largest Unsecured Creditors ---------------------------------------------------- Debtor: GOB WP CG, LLC fka Goldridge Group WP CG, LLC 310 Pinnacle Way Eau Claire, WI 54701 Bankruptcy Case No.: 11-32453 Chapter 11 Petition Date: August 11, 2011 Court: United States Bankruptcy Court Eastern District of Wisconsin (Milwaukee) Judge: Margaret Dee McGarity Debtor's Counsel: Albert Solochek, Esq. HOWARD, SOLOCHECK & WEBER, S.C. 324 East Wisconsin Avenue Milwaukee, WI 53202 Tel: (414) 272-0760 E-mail: alsolochek@hswmke.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 five largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wieb11-32453.pdf The petition was signed by Steve L. Stamm, partner. GRAPHIC PACKAGING: Bank Debt Trades at 3% Off in Secondary Market ----------------------------------------------------------------- Participations in a syndicated loan under which Graphic Packaging International, Inc., is a borrower traded in the secondary market at 96.50 cents-on-the-dollar during the week ended Friday, Aug. 12, 2011, a drop of 2.70 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on May 16, 2014, and carries Moody's 'Ba2' rating and Standard & Poor's BBB- rating. The loan is one of the biggest gainers and losers among 72 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Graphic Packaging Graphic Packaging International, Inc., formerly known as Riverwood International Corporation, offers paperboard and integrated paperboard solutions to beverage and consumer products multinationals. It provides paperboard and packaging machines. It operates paper mills, converting facilities, and machinery manufacturing facilities. Graphic Packaging International, Inc. is a wholly owned subsidiary of Graphic Packaging Holding Company headquartered in Marietta, Georgia Graphic Packaging Holding Company (GPHC) (NYSE:GPK) -- http://www.graphicpkg.com/-- is a provider of packaging solutions for a range of products to food, beverage and other consumer products companies. The Company operates in three business segments: paperboard packaging, multi-wall bag and specialty packaging. GPHC operates in four geographic areas: the United States/Canada, Central/South America, Europe and Asia Pacific. On March 10, 2008, the businesses of Graphic Packaging Corporation and Altivity Packaging, LLC, were combined through a series of transactions. In June 2009, the Company announced that is sold certain assets of the Handschy inks, coatings and varnishes business to Sun Chemical. As of December 31, 2009, the Company held 50% ownership interest in Rengo Riverwood Packaging, Ltd. In 2009, GPHC held 60% ownership interest in Graphic Hung Hing Packaging Ltd. In April 2011, the Company acquired Sierra Pacific Packaging, Inc. GRAYMARK HEALTHCARE: Incurs $600,000 Net Loss in Second Quarter --------------------------------------------------------------- Graymark Healthcare, Inc., reported a net loss of $600,248 on $4.41 million of net revenues for the three months ended June 30, 2011, compared with a net loss of $133,236 on $5.52 million of net revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $32.32 million in total assets, $23.76 million in total liabilities and $7.56 million in total equity. "In the second quarter of 2011, we realized higher sleep study volumes as a result of the strategy implemented at the beginning of 2011, in which we set forth to drive referral volume through key management changes and new sales initiatives," said Stanton Nelson, Graymark's chairman and CEO. "In fact, compared to the previous quarter, sleep studies and our recurring revenue re- supply business increased 14% and 15%, respectively. We have also continued the execution of cost-cutting measures aimed at driving efficiency throughout our organization and as a result, we have realized $1.4 million of SG&A savings since the beginning of the year." A full-text copy of the press release announcing the financial results is available for free at http://is.gd/gbud4v About Graymark Healthcare Oklahoma City, Okla.-based Graymark Healthcare, Inc. (NASDAQ: GRMH) -- http://www.graymarkhealthcare.com/-- is one of the largest providers of care management solutions to the sleep disorder market based on number of independent sleep care centers and hospital sleep diagnostic programs operated in the United States. As reported in the TCR on April 5, 2011, Eide Bailly LLP, in Greenwood Village, Colo., expressed substantial doubt about Graymark Healthcare's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered significant losses from operations, anticipates additional losses in the next year and has insufficient working capital as of Dec. 31, 2010, to fund the anticipated losses. GREEN BUILDERS: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Green Builders, Inc. aka Cole Computer Corp. Wilson Holdings, Inc. 110 Wild Basin Road South, Suite 300 Austin, TX 78746 Bankruptcy Case No.: 11-12013 Chapter 11 Petition Date: August 12, 2011 Court: U.S. Bankruptcy Court Western District of Texas (Austin) Judge: Craig A. Gargotta Debtor's Counsel: Stephen A. Roberts, Esq. STRASBURGER & PRICE, LLP 600 Congress Avenue, Suite 1600 Austin, TX 78701 Tel: (512) 499-3600 Fax: (512) 499-3660 E-mail: stephen.roberts@strasburger.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/txwb11-12013.pdf The petition was signed by William E. Weber, president. Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Wilson Family Communities, Inc. 11-12014 08/12/11 GREEN ENDEAVORS: Incurs $105,000 Net Loss in Second Quarter ----------------------------------------------------------- Green Endeavors, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $105,775 on $688,309 of total revenue for the three months ended June 30, 2011, compared with a net loss of $25,974 on $548,120 of total revenue for the same period a year ago. The Company also reported a net loss of $137,122 on $1.35 million of total revenue for the six months ended June 30, 2011, compared with a net loss of $99,683 on $1.05 million of total revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $1.04 million in total assets, $4.40 million in total liabilities, and a $3.35 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/asZNkA About Green Endeavors Salt Lake City, Utah-based Green Endeavors, Inc., runs two hair care salons that feature Aveda(TM) products for retail sale. As reported by the TCR on April 1, 2011, Madsen & Associates CPA', Inc., in Salt Lake City, Utah, expressed substantial doubt about the Company's ability to continue as a going concern. The accountants noted that the Company will need additional working capital for its planned activity and to service its debt. GREEN PLANET: ACE Now Holds 5.6% of Outstanding Common Shares ------------------------------------------------------------- Green Planet Group, Inc., has become aware that 9,955,500 common shares of its stock originally issued to Clifford Blake in conjunction with the acquisition of certain assets from him and other sellers in March 2009, and the subject of certain litigation for rescission against Blake, have been transferred to ACE American Insurance Company. These shares were transferred pursuant to a Judgment Against Garnishee Clifford Blake (Arizona Superior Court CV2009-030709) by which ACE became the holder of these restricted disputed shares for which the Company still seeks rescission and cancellation. As of Aug. 8, 2011, these shares represent 5.6% of the outstanding shares of Green Planet Group, Inc. About Green Planet Green Planet Group, Inc., is engaged in the research, development, manufacturing and distribution of a variety of products that improve overall energy efficiency with a specific concentration on petroleum based energy sources. The Company currently has four wholly owned operating subsidiaries, EMTA Corp, XenTx Lubricants, Inc., White Sands, L.L.C., and Lumea, Inc. As reported by the TCR on July 21, 2011, Semple, Marchal & Cooper, LLP, in Phoenix, Ariz., says that Green Planet Group's significant operating losses and negative working capital raise substantial doubt about its ability to continue as a going concern. Green Planet reported a net loss of $15.4 million on $37.1 million of sales for the fiscal 2011, compared with a net loss of $15.7 million on $57.4 million of sales for fiscal 2010. The Company's balance sheet at March 31, 2011, showed $5.6 million in total assets, $38.9 million in total liabilities, and a stockholders' deficit of $33.3 million. GRUBB & ELLIS: Completes Sale of Daymark to IUC-SOV --------------------------------------------------- Grubb & Ellis Company announced the sale of Daymark Realty Advisors, Inc., to IUC-SOV, LLC, a joint venture entity controlled by Sovereign Capital Management Group and Infinity Urban Century, an investment affiliate of The Infinity Group. Grubb & Ellis has exited the tenant-in-common business with the disposition of its wholly owned subsidiary. Pursuant to the Purchase Agreement, the Company sold to Purchaser all of the outstanding shares of Daymark in exchange for (1) a cash payment of $500,000 from Purchaser and (2) the assumption by Purchaser of $10,700,000 of the net intercompany balance payable from the Company to NNN Realty Advisors, Inc., a wholly-owned subsidiary of Daymark. "The sale of Daymark is extremely positive for our company. Daymark was noncore to our Real Estate Services and non-traded REIT businesses. This sale will allow us to focus on profitability and growth, while continuing to review our broader corporate strategic alternatives," said Thomas P. D'Arcy, president and chief executive officer of Grubb & Ellis. "We are very pleased to have completed our acquisition of Daymark, which manages one of the most attractive portfolios of tenant-in- common properties in the U.S., and we plan to use our knowledge of the sector to enhance the company's competitive advantage and performance in the marketplace," said Etienne Locoh, managing partner of Infinity's Urban Century investment unit. "We believe that the investment acumen and capital markets relationships of Sovereign Capital and Infinity Urban Century will strengthen this platform with asset capital solutions and deep real estate management experience." Grubb & Ellis entered the tenant-in-common business as part of the company's 2007 merger with NNN Realty Advisors, Inc. Daymark is one of the largest real estate asset management companies in the country, serving more than 5,200 clients and overseeing a nationwide portfolio of commercial property totaling approximately 33 million square feet, including more than 8,700 multifamily units. FBR Capital Markets & Co. served as financial advisor to Grubb & Ellis in connection with the transaction. In connection with the closing of the Transactions, the Company, Daymark and each of Daymark's subsidiaries entered into an Intercompany Balance Settlement and Release Agreement dated Aug. 10, 2011. A full-text copy of the Stock Purchase Agreement is available for free at http://is.gd/7vSFCL Promissory Note The $5,000,000 principal amount of the Promissory Note issued by the Company to NNNRA becomes due and payable on Aug. 10, 2016. Interest accrues on the unpaid principal of the Promissory Note at a rate equal to 7.95% per annum. Accrued and unpaid interest on the Promissory Note is payable on the last day of each calendar quarter (commencing on Sept. 30, 2011) and on the Maturity Date. The Company may prepay all or any portion of the Promissory Note at any time without premium or penalty. A full-text copy of the Promissory Note is available for free at http://is.gd/jx0r5h IBSRA In connection with the closing of the Transactions, the Company, Daymark and each of Daymark's subsidiaries entered into an Intercompany Balance Settlement and Release Agreement dated Aug. 10, 2011. Pursuant to the IBSRA, Daymark and its subsidiaries released the Company from, among other things, any and all claims, obligations, contracts, agreements, debts and liabilities that Daymark and its subsidiaries now have, have ever had or may in the future have against the Company arising at the time of or prior to the Closing or on account of or arising out of any matter, fact or event occurring at the time of or prior to the Closing. A full-text copy of the IBSRA is available for free at http://is.gd/r5HetG About Grubb & Ellis Company Grubb & Ellis Company -- http://www.grubb-ellis.com/-- is one of the largest and most respected commercial real estate services and investment companies in the world. Our 5,200 professionals in more than 100 company-owned and affiliate offices draw from a unique platform of real estate services, practice groups and investment products to deliver comprehensive, integrated solutions to real estate owners, tenants and investors. The firm's transaction, management, consulting and investment services are supported by highly regarded proprietary market research and extensive local expertise. Through its investment management business, the company is a leading sponsor of real estate investment programs. The Company's balance sheet at March 31, 2011, showed $256.53 million in total assets, $242.77 million in total liabilities, $92.97 million in 12% cumulative participating perpetual convertible preferred stock, and a $79.22 million total deficit. The Company reported a net loss of $69.7 million on $575.5 million of revenues for 2010, compared with a net loss of $80.5 million on $527.9 million of revenues for 2009. GSI GROUP: Second Quarter Revenue Up 18% to $85.7 Million --------------------------------------------------------- GSI Group Inc. reported financial results for the second quarter of 2011, ended July 1, 2011. During the second quarter of 2011, GSI generated revenue of $101.4 million, an increase of 18% from $85.7 million in the same period a year ago. The three reportable business segments of the Company all experienced double digit growth in the second quarter, compared to the same period a year before. The Company recognized $4.2 million of net revenue in the second quarter of 2011 that had been deferred under multi-element arrangements entered into prior to the adoption of ASU 2009-13. Specific to the Company's adoption of ASU 2009-13 in the first quarter of 2011, the Company did not defer any revenue on new orders placed in the quarter, related to multiple element arrangements, delivered over multiple periods. A full text copy of the company's second quarter results is available free at http://ResearchArchives.com/t/s?76aa About GSI Group Inc. Headquartered in Bedford, Massachusetts, GSI Group Inc. -- http://www.gsig.com/-- supplies precision technology to the global medical, electronics, and industrial markets and semiconductor systems. GSI Group Inc.'s common shares are quoted on Pink Sheets OTC Markets Inc. (LASR.PK). GSI Group together with two of its subsidiaries filed for Chapter 11 protection on Nov. 20, 2009 (Bankr. D. Del. Lead Case No. 09-14110). William R. Baldiga, Esq., at Brown Rudnick LLP, represented the Debtors as lead counsel. Mark Minuti, Esq., at Saul Ewing LLP, represented the Debtors as its local counsel. On July 23, 2010, the Debtors consummated their reorganization through a series of transactions contemplated by a Chapter 11 plan. The Company's shareholders prior to the emergence from bankruptcy retained approximately 86.1% of its capital stock following emergence. * * * In November 2010, Standard & Poor's Ratings Services said that it has affirmed its ratings, including the 'B' corporate credit rating, on Assumption, Ill.-based GSI Group LLC. At the same time, S&P revised the outlook to stable from negative. S&P said the ratings on GSI reflect the company's highly leveraged financial profile, which more than offsets its weak business risk profile. GSI operates in cyclical and competitive niche agricultural equipment markets and faces raw material cost volatility. The company's leading position in its niche markets partially offsets these factors. S&P expects its operating performance to continue to recover in 2011, primarily on better conditions in its end markets. HALIFAX REGIONAL: Moody's Affirms Bond Rating at 'Ba3' ------------------------------------------------------ Moody's Investors Service has affirmed the Ba3 rating assigned to Halifax Regional Medical Center's bonds. The outlook remains negative. RATINGS RATIONALE The affirmation of the Ba3 rating reflects the progress management has made in improving operating performance at Halifax over the last several years. The maintenance of the negative outlook reflects declining patient volumes, which resulted in slightly negative revenue growth in FY 2010, high exposure to Medicare and Medicaid, and the issuance of $6.5 million in additional debt to fund renovations at the hospital. STRENGTHS * Cash position has remained good over the last few years, although this is due in part to low capital spending which has averaged only 0.5 times depreciation expense over the last five years * Operating performance appears to have stabilized over the last few years, despite lower operating profitability through nine months 2011 * Other debt including notes and operating leases was paid down over the past year, somewhat mitigating the impact of the new loan to fund renovations (discussed below) CHALLENGES * Patient volumes have declined the last two years with combined admissions and observation stays declining 0.4% in FY 2009 and 3.2% in FY 2010; admissions are also down through nine months FY 2011, but positively, ED Visits, outpatient visits, and surgeries are flat in the interim period * Small absolute size of the hospital makes it susceptible to physician departures, which have contributed to the variation in operating performance and patient volume fluctuations * High exposure to Medicare and Medicaid, comprising a combined 72% of patient volume in FY 2010 * North Carolina is reducing Medicaid rates by 7.3%; NC also passed provider assessment legislation which is expected to partially offset the decrease in Medicaid rates although provider fee program has not yet been approved by CMS * New debt issuance of $6.5 million (40% increase) to fund renovations to the outpatient surgery area, parking lot, and other areas DETAILED CREDIT DISCUSSION LEGAL SECURITY: Bonds secured by a gross revenue pledge and negative mortgage lien INTEREST RATE DERIVATIVES: None RECENT DEVELOPMENTS/RESULTS Operating performance in FY 2010 was good with a 2.8% operating margin and 7.3% operating cash flow margin, resulting in good leverage metrics of 1.9 times debt to cash flow and Moody's adjusted MADS coverage of 2.5 times. However, Moody's remains concerned about the sustainability of this performance and maintenance of the metrics in light of weakening patient volumes and an increase in debt. Through nine months FY 2011 ending June 30, 2011 operating profitability is lower than the prior year with an operating margin of 0.2% and weak operating cash flow margin of 4.1%. The downturn is due to a drop in patient volumes with inpatient admissions falling a material 7.6% and higher expenses. Moody's notes, positively, that other volume indicators including surgeries and emergency department visits are flat. Operating revenue in FY 2010 was essentially flat with a 0.1% decline caused by a decline in patient volumes throughout the hospital. Combined admissions and observation stays were down 3.2% following a 0.5% decline in FY 2009 and other indicators including emergency department visits, total surgeries, and outpatient visits all showed declines of 5.2% to 11.2%. Although the volume declines mirror declines throughout the country, the losses are more acute at Halifax given its small size. The volume declines are due to a variety of factors including continued economic weakness in this part of North Carolina and physician turnover challenges that have impacted certain specialties and required the use of more expensive locum physicians. Management reports that many key vacancies have been filled with some recruited physicians having already started and others under contract to start over the next few months. However, the challenges of recruiting and retaining physicians have been an ongoing challenge for Halifax and are not uncommon for hospitals of this size and location in a rural area. Halifax is adding $6.5 million of debt to fund renovations to the surgical suites, registration area, parking lot, and other renovations. The debt is being placed with BB&T and is interest only for the first two years and must be refinanced after seven years, in FY 2018. Halifax currently has a very low debt load at only 15.2% of revenue and maintains a strong balance sheet for the rating at 77 days cash on hand and 140% cash to debt through six months FY 2011. Investments do include a 35% allocation to equities suggesting that liquidity balances may decline if broader financial markets continue to lose value. The new debt lowers the cash-to-debt ratio to 99% at six months FY 2011. Unrestricted cash and investment balances have steadily increased over the last three years as a result of low capital spending, which has averaged just 0.5 times since FY 2006. Capital spending not supported by the $6.5 million debt issuance is expected to remain at about $2 million- $3 million annually, which will help maintain balance sheet strength so long as operating performance remains profitable. Outlook The maintenance of the negative outlook reflects the challenges facing the organization including maintaining an adequate medical staff and stable operating margins over a multi-year time horizon. WHAT COULD MAKE THE RATING GO UP Stable or increasing patient volumes; stable operating performance over several years; stable and consistent revenue growth WHAT COULD MAKE THE RATING GO DOWN Sustained operating losses or low levels of cash flow; patient volume declines; decrease in operating revenue; weakening of balance sheet position KEY INDICATORS Assumptions & Adjustments: - Based on financial statements for Halifax Regional Medical Center, Inc., Clinics and Foundation - First number reflects audit year ended September 30, 2009 - Second number reflects audit year ended September 30, 2010 - Debt in FY 2010 increased by $6.5 million - MADS in FY 2010 increased $490,000 to reflect pro-forma debt service for $6.5 million of new debt - Interest expense "grossed up" by $319,000 to reflect pro-forma interest expense on new debt - Investment returns normalized at 6% unless otherwise noted * Inpatient admissions: 7,915; 7,441 * Total operating revenues: $104.8 million; $104.7 million * Moody's-adjusted net revenue available for debt service: $5.3 million; $9.1 million * Total debt outstanding: $16.9 million; $22.4 million * Maximum annual debt service (MADS): $3.5 million; $4.0 million * MADS Coverage with reported investment income: 1.3 times; 2.0 times * Moody's-adjusted MADS Coverage with normalized investment income: 2.6 times; 2.3 times * Debt-to-cash flow: 3.8 times; 2.8 times * Days cash on hand: 63 days; 85 days * Cash-to-debt: 103%; 102% * Operating margin: (0.9%); 2.8% * Operating cash flow margin: 4.1%; 7.3% RATED DEBT (debt outstanding as of September 30, 2010) - Series 1998; fixed rate ($15.9 million outstanding) rated Ba3 CONTACT Obligor: Sherry Jensen, Chief Financial Officer, (252) 535-8005 The last rating action with respect to Halifax Regional Medical Center was on August 17, 2010 when the Ba3 rating was affirmed with a negative outlook. PRINCIPAL METHODOLOGY The principal methodology used in this rating was Not-for-Profit Hospitals and Health Systems published in January 2008. Moody's adopts all necessary measures so that the information it uses in assigning a rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process. The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. HAMP HAVEN: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Hamp Haven Farms, a general partnership aka Hamphaven Farms fdba dba HHF Construction 15908 San Road Reedsville, WI 54230 Bankruptcy Case No.: 11-32547 Chapter 11 Petition Date: August 12, 2011 Court: United States Bankruptcy Court Eastern District of Wisconsin (Milwaukee) Debtor's Counsel: Paul G. Swanson, Esq. STEINHILBER, SWANSON, MARES, MARONE & MCDERMOTT 107 Church Avenue P.O. Box 617 Oshkosh, WI 54903-0617 Tel: (920) 426-0456 E-mail: pswanson@oshkoshlawyers.com Scheduled Assets: $4,849,347 Scheduled Debts: $8,321,329 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wieb11-32547.pdf The petition was signed by Thomas L. Braun, partner. Affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Wolfgang Dairy, LLC 11-32549 08/12/11 HARRY & DAVID: Expects to Emerge From Bankruptcy in Coming Weeks ---------------------------------------------------------------- Laura Gunderson at OregonLive.com reports that Harry & David said it expects to emerge from bankruptcy in coming weeks, after shedding much of its debt, 52 of its retail stores and the pensions of 2,700 of its current and former employees. According to the report, the pension move, the Oregon-based retailer has said, was necessary. It also contends that putting the Pension Benefit Guaranty Corp. in control of plans ensures that the majority of workers will receive their retirement benefits. The report says yet analysts and academics specializing in pension policy say such decisions aren't healthy for anyone and further stress an agency that has seen its load of passed-on pensions increase throughout the recession. As reported in yesterday's edition of the TCR, Harry and David has reached an agreement with the PBGC relating to the termination of the Company's pension plan and the treatment of the PBGC's claim under the Company's Chapter 11 Plan of Reorganization. The agreement, which is subject to the execution of definitive documentation, will provide the Company with a clear path to emerge from Chapter 11 in the near future. At a hearing held on August 11, 2011, the Bankruptcy Court overseeing the Company's Chapter 11 case indicated that it would confirm the Plan, subject to final documentation of the settlement with the PBGC. An ad hoc committee of holders of the Company's public notes and the Official Committee of Unsecured Creditors in the Company's Chapter 11 case both support the implementation of the settlement as part of the Plan. 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. HAWAII MEDICAL: Dianne Okumura Approved as Patient Care Ombudsman ----------------------------------------------------------------- The Hon. Robert J. Faris of the U.S. Bankruptcy Court for the District of Hawaii approved the appointment of Dianne Okumura doing business as T.B.H. LLC, as patient care ombudsman in the Chapter 11 case of Hawaii Medical Center. Ms. Okumura was formerly chief, Office of Health Care Assurance, State of Hawaii Department of Health whose mission was to ensure the health, safety and welfare of all individuals receiving services at all health care facilities within the State of Hawaii and the Pacific Region (including American Samoa, Guam, and Saipan). According to Tiffany L. Carroll, Acting U.S. Trustee, Ms. Okumura served as the patient care ombudsman in the previous Chapter 11 cases involving the same Debtors. Ms. Okumura is expected to, among other things: 1) monitor the quality of patient care provided to patients of the Debtor, to the extent necessary under the circumstances, including interviewing patients and physicians; 2) not later than 60 days after the date of appointment, and not less frequently than at 60-day intervals thereafter, report to the court after notice to the parties in interest, at a hearing or in writing, regarding the quality of patient care provided to patients of the Debtor; and 3) if the ombudsman determines that the quality of patient care provided to patients of the debtor is declining significantly or is otherwise being materially compromised, file with the court a motion or a written report, with notice to the parties in interest immediately upon making such determination. About Hawaii Medical Center The Hawaii Medical Center, along with its affiliates, filed for Chapter 11 bankruptcy (Bankr. D. Hawaii Lead Case No. 11-01746) on June 21, 2011, just a year after exiting court protection. Hawaii Medical Center owns two hospital campuses -- HMC East in North Honolulu and HMC West in Ewa Beach. The two hospitals have 342 licensed beds and have a total of more than 1,000 employees. The hospitals were known as St. Francis Medical Center before Hawaii Medical purchased the hospitals in 2007. Judge Robert J. Faris presides over the 2011 case. Lawyers at Moseley Biehl Tsugawa Lau & Muzzi, in Honolulu, Hawaii, and McDonald Hopkins LLC, in Cleveland, Ohio, serve as the Debtors' counsel. The Debtor's professionals include: Scouler & Company LLC as financial advisors; Krieg DeVault LLP as special compliance counsel. Hawaii Medical Center disclosed $74,713,475 in assets and $91,112,280 in liabilities as of the Chapter 11 filing. The petitions were signed by Kenneth J. Silva, member of the board of directors. Tiffany L. Carroll, Acting U.S. Trustee for Region 15, appointed five members to the Official Committee of Unsecured Creditors in the Debtors' cases. Attorneys at Wagner Choi & Verbrugge, in Honolulu, Hawaii, and Pachulski Stang Ziehl & Jones LLP, in Los Angeles, represent the Official Committee of Unsecured Creditors as counsel. The Debtors' prepetition debt structure is comprised of (i) the Prepetition Revolving Loan with MidCap Financial, LLC, and the Prepetition Term Loan with St. Francis Healthcare Systems of Hawaii. As of the petition Dte, the aggregate outstanding principal on the Prepetion MidCap Revolving Loan and the Prepetition St. Francis Term Loan is approximately $46,851,772. The principal balance of the Prepetion MidCap Revolving Loan is approximately $7,676,495. The amount owed under the Prepetition St. Francis Term Loan is approximately $39,175,277, secured by St. Francis's first priority lien on, among other things, all real property of the Debtors. Through this Chapter 11 filing, the Debtors plan to return the hospitals to the control of St. Francis. In the prior case, HMC and its affiliated debtors were converted to new, Hawaii non-profit corporations. CHA Hawaii, one of HMC's affiliated debtors and a subsidiary of Cardiovascular Hospitals of America, LLC, discontinued management of the reorganized Debtors. Wichita, Kansas-based CHA Hawaii LLC, and its affiliates -- including Hawaii Medical Center LLC -- filed for Chapter 11 protection on Aug. 29, 2008 (Bankr. D. Del. Case No. 08-12027). Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP represented the Debtors in their restructuring efforts. CHA Hawaii estimated assets of up to $10 million and debts between $50 million and $100 million when it filed for bankruptcy. The Debtors obtained confirmation of their Chapter 11 plan in May 2010 and emerged from bankruptcy in August 2010. HAWKER BEECHCRAFT: Issues RSUs to Named Executive Officers ---------------------------------------------------------- Hawker Beechcraft, Inc., and Hawker Beechcraft Notes Company entered into a Restricted Stock Unit Agreement with each of the Company's current named executive officers, pursuant to which grants of restricted stock units were issued. The RSUs were issued in exchange for stock options held by the Named Executive Officers. The exchanges were made pursuant to an Offer to Exchange Outstanding Options for New Restricted Stock Units that was made by HBI to all of its optionholders. Pursuant to the Exchange Offer, each Named Executive Officer was offered the right to exchange each of his outstanding Options on a 1.75-to-1 basis. For every 1.75 shares of common stock of the Company that was subject to an eligible Option that was surrendered, one RSU was issued. The number of Options exchanged for RSUs by the Named Executive Officers is as follows: Options Surrendered RSUs Granted ------------------- ------------ Bill Boisture 1,643,750 939,286 Shawn Vick 337,500 192,857 Bill Brown 305,294 174,454 Jim Maslowski 170,000 97,143 The RSU Agreement provides that, subject to the Named Executive Officer's continued employment through the applicable date of accrual, the RSUs will accrue 20% per year commencing on the vesting commencement date of the Options exchanged for those RSUs. RSUs will be deemed fully accrued upon a Change in Control or a Qualifying Sale. In the event of an involuntary termination due to the Named Executive Officer's death or disability, the Named Executive Officer will become accrued in an additional 20% of the RSUs and any additional RSUs that have not been accrued will be forfeited. A full-text copy of the Form 8-K is available for free at: http://is.gd/Wd4Qja About Hawker Beechcraft Hawker Beechcraft Acquisition Company, LLC, headquartered in Wichita, Kan., is a manufacturer of business jets, turboprops and piston aircraft for corporations, governments and individuals worldwide. The Company's balance sheet at March 31, 2011, showed $3.121 billion in total assets, $3.396 billion in total liabilities, and deficit of $275.5 million. Hawker Beechcraft reported a net loss of $304.3 million on $2.80 billion of total sales for 12 months ended Dec. 31, 2010. Net loss in 2009 and 2008 was $451.3 million and $157.2 million, respectively. To reduce the cost of operations, in October 2010, the Company announced it would implement a cost reduction and productivity program. The first part of the program consisted of the immediate termination of approximately 8% of salaried employees while the second part involves reducing the Company's factory and shop work forces by approximately 800 employees by end of August 2011. * * * Hawker Beechcraft carries 'Caa2' corporate family and probability of default ratings from Moody's Investors Service. HCA HOLDINGS: Bank Debt Trades at 5% Off in Secondary Market ------------------------------------------------------------ Participations in a syndicated loan under which HCA, Inc., is a borrower traded in the secondary market at 94.57 cents-on-the- dollar during the week ended Friday, Aug. 12, 2011, a drop of 4.27 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 225 basis points above LIBOR to borrow under the facility. The bank loan matures on Nov. 6, 2013, and carries Moody's 'Ba3' rating and Standard & Poor's 'BB' rating. The loan is one of the biggest gainers and losers among 72 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About HCA Headquartered in Nashville, Tennessee, HCA is the nation's largest acute care hospital company with 162 hospitals and 104 freestanding surgery centers (including eight hospitals and eight freestanding surgery centers that are accounted for using the equity method) as of Sept. 30, 2010. For the twelve months ended Sept. 30, 2010, the company recognized revenue in excess of $30 billion. The Company's balance sheet at March 31, 2011, showed $23.81 billion in total assets, $31.59 billion in total liabilities, and a $7.78 billion stockholders' deficit. * * * As reported by the Troubled Company Reporter on July 29, 2011, Moody's assigned a Ba2 (LGD 2, 27%) rating to HCA, Inc.'s offering of senior secured first lien notes due 2020 and a B3 (LGD 5, 88%) rating to the company's offering of senior unsecured notes due 2022. Moody's understands that proceeds from the offerings will be used to fund the call of a portion of the company's second lien notes. Therefore, while Moody's does not expect any meaningful change in the overall leverage of the company, certain LGD loss estimates will be revised to reflect the reduction of second lien debt from HCA's capital structure based on the ultimate amount redeemed and the allocation of secured and unsecured debt raised in this offering. HCA's B1 Corporate Family and Probability of Default Ratings remain unchanged. The outlook for the ratings is stable. HCA's B1 Corporate Family Rating reflects Moody's expectation that the company will continue to operate with significant leverage. Furthermore, the company has large debt maturities in future periods, although the proposed note offering and call of a portion of the second lien notes continues the progress to push those maturities out. The rating also reflects Moody's consideration of HCA's scale and position as the largest for-profit hospital operator, which should aid in providing access to resources needed in adapting to changes in the sector brought on by healthcare reform legislation and aid in the company's ability to weather industry pressures. Finally, the rating incorporates Moody's expectation that the company will take a more conservative approach to the use of additional debt for shareholder initiatives and continue to improve credit metrics through both EBITDA growth and debt repayment. On July 28, 2011, the TCR reported that Standard & Poor's assigned HCA Inc.'s proposed $500 million senior notes due 2020 a 'BB' issue-level rating. "We also assigned the notes a debt recovery rating of '1', indicating a very high (90% to 100%) recovery for lenders in the event of a payment default," S&P related. "At the same time, we assigned a rating of 'B-' to HCA's proposed $500 million senior unsecured notes due 2022 and a recovery rating of '6', indicating a negligible (0% to 10%) recovery for lenders in the event of a payment default. The company plans to use the proceeds to refinance a portion of its existing second-lien debt," S&P said. The speculative-grade rating on HCA reflects uncertain prospects for third-party reimbursement, its highly leveraged financial risk profile, and its historically aggressive financial policies. It also reflects recent weakness in earnings, influenced by an adverse shift in service mix to less acute medical cases. Still, the company's relatively diversified portfolio of 164 hospitals and 111 ambulatory surgery centers, generally favorable positions in its competitive markets, and experienced management team partially mitigate these risks and contribute to our assessment that HCA has a fair business risk profile. These factors help protect the company from conditions that confront several of its far smaller peers. HOLDINGS GAMING: Hiked by Moody's to 'Caa2' on Improved Liquidity ----------------------------------------------------------------- Moody's Investors Service raised Holdings Gaming Borrower L.P.'s Corporate Family ratings and Probability of Default ratings to Caa2 from Caa3. Concurrently, Moody's upgraded the company's $303.5 million first lien term loan to B3 from Caa1. The ratings outlook is stable. The rating action is: - Corporate Family Rating to Caa2 from Caa3 - Probability of Default Rating to Caa2 from Caa3 - $303.5 million first lien term loan due June 2015 to B3 (LGD2, 24%) from Caa1 (LGD2, 21%) Ratings Rationale The upgrade of HGB's Corporate Family rating (CFR) to Caa2 from Caa3 reflects HGB's better than expected operating performance and improved liquidity profile. HGB's ramp up of its sole property, River's Casino, met expectations despite the weak economy. In the last twelve months ended June 30, 2011 EBITDA grew by approximately 50% from FY 2010 levels as a result of greater revenue and EBITDA contributions from table games, which helped drive overall operating performance. While Moody's anticipates growth in table games to level off following the conclusion of the initial ramp up period, Moody's doesn't expect significant deterioration in HGB's operating performance given the company's established market position. Based on current run-rate cash flow generation Moody's expects the company will have sufficient liquidity to meet its cash fixed charges over the intermediate term. As a result, near-term payment default has moderated. Despite the improved operating performance and short term liquidity, uncertainly about the company's future capital structure remains. The Caa2 CFR reflects HGB's significant financial leverage -- Moody's adjusted debt/EBITDA was above 10 times at June 30, 2011 (incorporating Moody's 100% debt treatment for Sr. Preferred Interests and Unsecured Notes) -- and is expected to remain high in the intermediate term due to the company's very high interest which is currently paid-in-kind. Based on Moody's current estimates, HGB will likely need to further restructure its debt (including the junior debt) in order to make its capital structure more sustainable. Moody's rates HGB's senior secured first lien term loan at B3. This is one notch below the rating otherwise indicated by Moody's Loss Given Default Methodology. Based on Moody's recovery analysis, the B3 rating more accurately reflects the expected loss characteristics of the first lien term loan in the event of default. The stable rating outlook considers HGB's solid liquidity profile. Moody's anticipates the company will generate sufficient cash flows that will more than offset its cashl-based fixed charges in the next 12-18 months. Given HGB's current capital structure, Moody's does not anticipate upward rating momentum in the near term until the company has addressed the high PIK component and high cost of its capital structure. Ratings could be downgraded if HGB's suffers a decline in operating performance or its liquidity deteriorates for any reason, as this would elevate the risk of a payment default. Holdings Gaming Borrower, LP ("HGB") owns and operates the Rivers Casino, which opened on August 9, 2009 in Pittsburgh, Pennsylvania. The casino feature approximately 3,000 slot machines, 107 table games, 9 bars and restaurants, and 1,000 seat outdoor amphitheater. The principal methodologies used in this rating were Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009, and Global Gaming published in December 2009. HORNE INTERNATIONAL: Reports $739,000 Net Income in 2nd Quarter --------------------------------------------------------------- Horne International, Inc. filed its quarterly report on Form 10-Q, reporting net income of $739,000 on $1.3 million of revenues for the three months ended June 26, 2011, compared with a net loss of $260,000 on $850,000 of revenues for the three months ended June 27, 2010. The Company recognized $1.08 million in net income in the 2nd quarter of 2011 from a judgment in the matter of Spectrum Sciences and Software, Inc. vs. The United States, Case Number 04-l366C. The Company reported net income of $474,000 on $2.3 million of revenues for the six months ended June 26, 2011, compared with a net loss of $808,000 on $1.8 million of revenues for the six months ended June 27, 2010. The Company's balance sheet as of June 26, 2011, showed $1.5 million in total assets, $1.9 million in total liabilities, and a stockholders' deficit of $389,000. Stegman & Company, in Baltimore, Md., expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has experienced continuing net losses for each of the last four years and as of Dec. 26, 2010, current liabilities exceeded current assets by $1.0 million. A copy of the Form 10-Q is available at http://is.gd/g0vuZ8 Fairfax, Va.-based Horne International, Inc., is an engineering services company focused on provision of integrated, systems approach based solutions to the energy and environmental sectors. HOSPITAL DAMAS: Settles PRHS Claim for $356,000 ----------------------------------------------- Hospital Damas, Inc. and its creditor, Puerto Rico Hospital Supply, Inc., have agreed to settle and compromise the dispute with respect to PRHS' Claim No. 55. The Debtor and PRHS concur that the total amount owing by the Debtor for the prepetition purchase of services and supplies is $673,437. The amount will be subdivided -- (i) $536,545 for services and products under five certain executory contracts and (ii) $136,892 for the purchase of miscellaneous supplies outside the scope of the five executory contracts. The Debtor desires to assume or renew these executory contracts with PRHS: (a) The X-ray and related products and services contract executed on April 10, 2010 and valid through April 9, 2013; (b) The "atados" Customed Packs contract executed on May 1, 2009 and valid through April 30, 2012; (c) The Ethicon Sut/ethicon and ethicon endo contract executed on June 1, 2008 and valid through May 31, 2011, which is renewed pursuant to its terms; (d) The case cart cardiovascular surgery, materials and services contract originally executed on September 1, 2007 and valid through August 31, 2010, but which the parties by their conduct and dealings have effectively extended; (e) The 3M contract for medical surgical supplies and services, executed on July 8, 2008 and valid through June 30, 2009, but which the parties by their conduct and dealings have effectively extended from year to year. The Debtor agrees to pay $356,000 to cure all prepetition amounts owing to PRHS under the assumed executory contracts -- instead of the total $536,545 the parties both recognize as being owed under the Contracts as of the Petition Date. The difference between the prepetition debt of $673,435 and the agreed amount of $356,000 for the prepetition executory contract claims will be considered a discount offered by PRHS to the Debtor to assist in its reorganization and in consideration of the assumption of the Contracts. PRHS waives its right to claim a dividend payment for the difference, even as a general unsecured claim. About Hospital Damas Ponce, Puerto Rico-based Hospital Damas, Inc., filed for Chapter 11 bankruptcy protection (Bankr. D. P.R. Case No. 10-08844) on Sept. 24, 2010. Charles A. Cuprill-Hernandez, Esq., at Charles A. Cuprill, P.S.C., Law Offices, serves as the Debtor's bankruptcy counsel. In October 2010, the United States Trustee appointed five creditors to serve on the Official Committee of Unsecured Creditors of the Debtor. Todd C. Meyers, Esq., and Colin M. Bernardino, Esq., at Kilpatrick Stockton LLP, represents the Committee as legal counsel, and Edgardo Munoz, Esq., at Edgardo Munoz, PSC, serves the Committee as local counsel. In its schedules, the Debtor disclosed US$24,017,166 in total assets and US$21,267,263 in total liabilities as of the Petition Date. HRD CORPORATION: Web of Lawsuit Prompted Chapter 11 Filing ---------------------------------------------------------- Melissa McEver at Houston Business Journal reports that HRD Corp., filed for bankruptcy amid a web of lawsuits over contract breaches and patent disputes -- and increasing mud-slinging. HRD Corp. owes Dow Chemical Co. $68 million, and a chemist who once worked for the Company more than $20 million. Court records show that the $20 million is owed to Ebrahim Bagherzadeh. HRD filed a Chapter 11 petition (Bankr. S.D. Tex. Case No. 11-36020) on July 12, 2011. Barbara Mincey Rogers, Esq., at Rogers & Anderson, PLLC, in Houston, serves as counsel to the Debtor. In its petition, the Debtor scheduled $6.7 million in assets and $105 million in liabilities. There is no secured debt. An affiliate in India is owed $14 million. HUDSON HEALTHCARE: To Sell Hoboken Medical to Bayonne Owner ----------------------------------------------------------- Ray Smith at the Hudson Report says the Hoboken Municipal Hospital Authority moved a step closer to selling Hoboken University Medical Center to HUMC Holdco, a private group that also owns Bayonne Medical Center. According to the report, the state Health Planning Board unanimously voted in Trenton to recommend to the Commissioner of Health that a Certificate of Need be issued and the sale be approved. The issuing of a Certificate of Need is essentially the final step in a hospital transaction. The Hudson Report says the Department of Health and Senior Services issued a staff report recommending the Planning Board approve the sale with certain conditions. One of the conditions is that the new owners keep current contracts with insurance providers for 12 months. The report says, before the board could vote on that condition, Phillip Schaengold, the chief transition officer for HUMC Holdco, told them that if they required the group to keep the current insurance contracts, the potential owners would walk away from the deal. The report relates that Geoff Teed, the founding partner and president of Paradigm Physician Partners in Connecticut, a bidder who ultimately did not receive the nod, has disputed the statement. Mr. Teed said at the hearing that his offer remains on the table. The report notes Hospital Authority Chairwoman Toni Tomarazzo said Mr. Teed's offer didn't have the financing for the sale. Mayor Dawn Zimmer wanted the hospital to be sold to private owners who would keep it as a hospital. Holdco has pledged to maintain it as a hospital for at least seven years. The proposed transaction totals $91.7 million in deal considerations, including a $51.6 million cash payment to extinguish the city's bond guarantee. The report says the new deal will extinguish the city's $52 million bond guarantee, and remove the city from the hospital's operations. The new owners have pledged to put $20 million in capital improvements in the hospital. About Hudson Healthcare Hudson Healthcare Inc. is the nonprofit operator of Hoboken University Medical Center in Hoboken, New Jersey. Hudson Healthcare filed for Chapter 11 protection (Bankr. D. N.J. Case No. 11-33014) in Newark on Aug. 1, 2011, estimating assets and debt of less than $50 million. Attorneys at Trenk, Dipasquale, Webster, et al., serve as counsel to the Debtor. Affiliate Hoboken Municipal Hospital Authority also sought Chapter 11 protection. IA GLOBAL: Delays Form 10-K Due as Japanese Units Audit Pending --------------------------------------------------------------- IA Global, Inc., announced that the Company was not able to timely file its annual report on Form 10-K for the fiscal year ended March 31, 2011, which was originally due to be filed with the SEC by June 29, 2011. The Company has experienced delays in completing the audits of it Japanese subsidiaries, Zest Corporation Co Ltd, Zest Home Co Ltd and Johnny Co Ltd. These delays are due primarily to administrative complications including the logistical challenges in performing a full audit in Japan. The Company is actively engaged in working with its independent registered accountants and expects to make the filing of its Annual Report on Form 10-K as soon as practicable. In addition, the Company's quarterly filing for the fiscal quarter ended June 30, 2011, on Form 10-Q is also expected to be delayed. About IA Global San Francisco, Calif.-based IA Global, Inc. (OTCQB: IAGI.OB) -- http://www.iaglobalinc.com/-- is a global services and outsourcing company focused on growing existing businesses and expansion through global mergers and acquisitions. The Company is utilizing its current partnerships to acquire growth businesses in target sectors and markets at discounted prices. The Company is actively engaging in discussions with businesses that would benefit from our business acumen and marketing expertise, knowledge of Asian Markets, and technology infrastructure. The Company's balance sheet at Dec. 31, 2010 showed $21.51 million in total assets, $19.14 million in total liabilities and $2.37 million in total stockholders' equity. As reported in the Troubled Company Reporter on July 20, 2010, Sherb & Co., LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's results for the fiscal year ended March 31, 2010. The independent auditors noted that the Company has incurred significant operating losses, and has a working capital deficit as of March 31, 2010. INDEPENDENCE TAX: Incurs $4.6-Mil. Net Loss in June 30 Quarter -------------------------------------------------------------- Independence Tax Credit Plus L.P. II filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $4.64 million on $1.50 million of total revenue for the three months ended June 30, 2011, compared with a net loss of $751,129 on $1.53 million of total revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $15.73 million in total assets, $47.74 million in total liabilities and a $32.01 million total partners' deficit. At June 30, 2011, the Partnership's liabilities exceeded assets and for the three months ended June 30, 2011, incurred net loss. These factors raise substantial doubt about the Partnership's ability to continue as a going concern. As reported by the TCR on June 30, 2011, Trien Rosenberg Weinberg Ciullo & Fazzari LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that at March 31, 2011, the Partnership's liabilities exceeded assets by $27,415,490 and for the year then ended incurred net income of $15,984,571, including gain on sale of properties of $20,284,069 and loss on impairment of properties of $1,047,336. Partnership management fees of approximately $4,930,000 will be payable out of sales or refinancing proceeds only to the extent of available funds after payments on all other Partnership liabilities have been made and after the Limited Partners have received a 10% return on their capital contributions. As such, the General Partner cannot demand payment of these deferred fees beyond the Partnership's ability to pay them. In addition, where the Partnership has unpaid partnership management fees related to sold properties, such management fees are written off and recorded as capital contributions. A full-text copy of the Form 10-Q is available for free at: http://is.gd/ak3rKC About Independence Tax Credit Plus L.P. II Based in New York, Independence Tax Credit Plus L.P. II was organized on Feb. 11, 1992, and commenced its public offering on Jan. 19, 1993. The general partner of the Partnership is Related Independence Associates L.P., a Delaware limited partnership. The general partner of Related Independence Associates L.P. is Related Independence Associates Inc., a Delaware Corporation. The ultimate parent of Related Independence Associates L.P. is Centerline Holding Company. The Partnership's business is primarily to invest in other partnerships owning leveraged apartment complexes that are eligible for the low-income housing tax credit enacted in the Tax Reform Act of 1986, some of which may also be eligible for the historic rehabilitation tax credit. The Partnership is in the process of developing a plan to dispose of all of its investments. INNOLOG HOLDINGS: Delays Filing of Quarterly Report on Form 10-Q ---------------------------------------------------------------- Innolog Holdings Corporation informed the U.S. Securities and Exchange Commission that it will be late in filing its quarterly report on Form 10-Q for the period ended June 30, 2011, because it does not yet have all the information it needs to complete the preparation of its financial statements. About Innolog Holdings Fairfax, Virginia-based Innolog Holdings Corporation is a holding company designed to make acquisitions of companies in the government services industry. The Company's first acquisition, Innovative Logistics Techniques, Inc., is a solutions oriented provider of logistics services primarily to agencies of the U.S. government, but also to state and local agencies and to private businesses. As reported by the TCR on May 26, 2011, Spector & Associates, LLP, inPasadena, California, expressed substantial doubt about the Company's ability to continue as a going concern. The Company reported a net loss of $5.79 million on $5.81 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $2.81 million on $5.93 million of revenue for the period from March 23, 2009, through Dec. 31, 2009. The Company's balance sheet at March 31, 2011, showed $791,341 in total assets, $9.68 million in total liabilities, all current, and a $8.89 million total stockholders' deficiency. INTERNATIONAL TEXTILE: Incurs $13.8 Million Net Loss in Q2 ---------------------------------------------------------- International Textile Group, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $13.80 million on $175.71 million of net sales for the three months ended June 30, 2011, compared with a net loss of $6.05 million on $161.55 million of net sales for the same period a year ago. The Company also reported a net loss of $25.74 million on $333.70 million of net sales for the six months ended June 30, 2011, compared with a net loss of $17.20 million on $308.91 million of net sales for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $481.50 million in total assets, $611.60 million in total liabilities and a $130.10 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/bCVW9E About International Textile International Textile Group, Inc., is a global, diversified textile manufacturer headquartered in Greensboro, North Carolina, with current operations principally in the United States, China, Mexico, and Vietnam. ITG's long-term focus includes the realization of the benefits of its global expansion, including reaching full production at ITG facilities in China and Vietnam, and continuing to seek other strategic growth opportunities. The Company reported a net loss of $46.30 million on $616.13 million of net sales for the year ended Dec. 31, 2010, compared with a net loss of $216.97 million on $659.26 million of net sales during the prior year. INTERTAPE POLYMER: Reports $3.8-Mil. Net Earnings in 2nd Qtr. ------------------------------------------------------------ Intertape Polymer Group Inc. reported net earnings of US$3.81 million on US$209.74 million of revenue for the three months ended June 30, 2011, compared with a net loss of US$2.53 million on US$180.27 million of revenue for the same period during the prior year. The Company also reported net earnings of US$3.77 million on US$402.36 million of revenue for the six months ended June 30, 2011, compared with a net loss of US$7.29 million on US$353.39 million of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed US$498.87 million in total assets, US$346.19 million in total liabilities and US$152.68 million in shareholders' equity. "The positive performance we realized during the second quarter reflects the successful execution of our strategic plan. The progress achieved is the result of an improved industry pricing environment, continued internal efforts to reduce manufacturing costs, as well as the contribution of higher-margin products in our mix. While we have regained some pricing power in recent months due to improved market dynamics, the spread between selling prices and raw material costs remains well below our historical and target levels," stated Intertape President and Chief Executive Officer, Greg Yull. A full-text copy of the press release announcing the financial results is available for free at http://is.gd/8VMcbY About Intertape Polymer Group Intertape Polymer Group Inc. (TSX:ITP) (NYSE:ITP) develops and manufactures specialized polyolefin plastic and paper based packaging products and complementary packaging systems for industrial and retail use. Headquartered in Montreal, Quebec and Sarasota/Bradenton, Florida, the Company employs approximately 2,100 employees with operations in 17 locations, including 13 manufacturing facilities in North America and one in Europe. The Company reported a net loss of US$56.44 million on US$720.51 million of sales for the year ended Dec. 31, 2010, compared with a net loss of US$14.39 million on US$615.46 million during the prior year. * * * In August 2010, Moody's Investors Service revised the rating outlook on Intertape Polymer Group Inc. to negative from stable and affirmed the B2 Corporate Family Rating. Moody's also affirmed the SGL-3 speculative grade liquidity rating and instrument ratings. Moody's said the B2 Corporate Family Rating reflects Intertape's narrow operating margins, lack of pricing power, largely commoditized product line and reliance on cyclical end markets, such as industrial, building and construction segments. Intertape is operating in a fragmented and highly competitive industry. The presence of large competitors with significant financial resources restricts Intertape's ability to recover raw material increases from customers and constrains the rating. In July 2010, Standard & Poor's Ratings Services revised its outlook on Intertape Polymer Group to positive from negative and affirmed its ratings, including its 'CCC+' corporate credit rating, on the Company and its subsidiary IntertapePolymer U.S. Inc. "The outlook revision reflects some improvement in the company's liquidity position and S&P's expectation that the improvement to the financial profile will continue into the next several quarters," said Standard & Poor's credit analyst Paul Kurias. ISTAR FINANCIAL: To Conduct Annual "Say on Pay Vote" ---------------------------------------------------- At iStar Financial Inc.'s 2011 annual meeting, the majority of shareholders voted in favor of holding an annual shareholder advisory (non-binding) vote on compensation of the Company's named executive officers and other named officers. Based on these results, the Company's Board of Directors has determined that the Company will conduct an annual "Say on Pay Vote" until the next required vote on the frequency of the "Say on Pay Vote." About iStar Financial New York-based iStar Financial Inc. (NYSE: SFI) provides custom- tailored investment capital to high-end private and corporate owners of real estate, including senior and mezzanine real estate debt, senior and mezzanine corporate capital, as well as corporate net lease financing and equity. The Company, which is taxed as a real estate investment trust, provides innovative and value added financing solutions to its customers. The Company's balance sheet at June 30, 2011, showed $8.29 billion in total assets, $6.55 billion in total liabilities, and $1.74 billion in total equity. * * * As reported by the TCR on March 29, 2011, Fitch Ratings has upgraded the Issuer Default Rating to 'B-' from 'C'. The upgrade of iStar's IDR is based on the improved liquidity profile of the company, pro forma for the new senior secured credit agreement (the new financing) that extends certain of the company's debt maturities, relieving the overhang of significant secured debt maturities in June 2011. In July 2010, Standard & Poor's Ratings Services lowered its long- term counterparty credit rating on iStar Financial to 'CCC' from 'B-'. The outlook is negative. iStar's limited funding flexibility and the severe credit quality deterioration in its loan portfolio continue to put negative pressure on the rating, S&P said. As reported by the Troubled Company Reporter on March 22, 2011, Standard & Poor's said that it raised its counterparty credit rating on iStar Financial Inc. to 'B+' from 'CCC' and removed it from CreditWatch where it was placed with positive implications on Feb. 23. The outlook is stable. "The upgrade reflects the company's closing of a $2.95 billion senior secured credit facility, which it will use to refinance the company's existing secured bank facilities and repay a portion of the company's unsecured debt," said Standard & Poor's credit analyst Jeffrey Zaun. If S&P's analysis of the new secured facility indicates 100% or more collateral coverage, S&P will rate the issue 'BB-'. If S&P's analysis of collateral indicates less than 100% coverage, S&P will rate the issue 'B+'. ISTAR FINANCIAL: Barry Ridings Elected to Board of Directors ------------------------------------------------------------ The Board of Directors of iStar Financial Inc. has elected Barry W. Ridings to serve as a member of the Board, effective immediately, for an initial term ending on the date of the 2012 annual meeting of stockholders. Mr. Ridings has also been appointed to serve as a member of the compensation committee of the Board of Directors. Mr. Ridings, age 59, is a managing director and vice chairman of U.S. investment banking of Lazard Freres & Co. LLC, a global, full service investment bank which he joined in July 1999. Mr. Ridings has over 35 years of experience in debt and equity offerings, mergers and acquisitions and corporate restructurings. Mr. Ridings is a director of Siem Industries Inc. (a company with interests in oil, gas and shipping). Lazard Freres provided financial advisory services to the Company in connection with the refinancing of its secured credit facilities for which Lazard Freres received aggregate fees of approximately $8.3 million since Jan. 1, 2010. The refinancing was completed in March 2011. Mr. Ridings is on the advisory council for the Cornell University Johnson Graduate School of Business. He is a trustee of the Mu of Delta Kappa Epsilon Foundation, a charitable fraternal organization associated with Colgate University, a trustee of The Montclair Kimberley Academy and a director of the Catholic Charities of the Archdiocese of New York. Mr. Ridings has an M.B.A. in Finance from Cornell University and a B.A. in Religion from Colgate University. About iStar Financial New York-based iStar Financial Inc. (NYSE: SFI) provides custom- tailored investment capital to high-end private and corporate owners of real estate, including senior and mezzanine real estate debt, senior and mezzanine corporate capital, as well as corporate net lease financing and equity. The Company, which is taxed as a real estate investment trust, provides innovative and value added financing solutions to its customers. The Company's balance sheet at June 30, 2011, showed $8.29 billion in total assets, $6.55 billion in total liabilities, and $1.74 billion in total equity. * * * As reported by the TCR on March 29, 2011, Fitch Ratings has upgraded the Issuer Default Rating to 'B-' from 'C'. The upgrade of iStar's IDR is based on the improved liquidity profile of the company, pro forma for the new senior secured credit agreement (the new financing) that extends certain of the company's debt maturities, relieving the overhang of significant secured debt maturities in June 2011. In July 2010, Standard & Poor's Ratings Services lowered its long- term counterparty credit rating on iStar Financial to 'CCC' from 'B-'. The outlook is negative. iStar's limited funding flexibility and the severe credit quality deterioration in its loan portfolio continue to put negative pressure on the rating, S&P said. As reported by the Troubled Company Reporter on March 22, 2011, Standard & Poor's said that it raised its counterparty credit rating on iStar Financial Inc. to 'B+' from 'CCC' and removed it from CreditWatch where it was placed with positive implications on Feb. 23. The outlook is stable. "The upgrade reflects the company's closing of a $2.95 billion senior secured credit facility, which it will use to refinance the company's existing secured bank facilities and repay a portion of the company's unsecured debt," said Standard & Poor's credit analyst Jeffrey Zaun. If S&P's analysis of the new secured facility indicates 100% or more collateral coverage, S&P will rate the issue 'BB-'. If S&P's analysis of collateral indicates less than 100% coverage, S&P will rate the issue 'B+'. J.A.R.A., INC.: Case Summary & 2 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: J.A.R.A., Inc. 875 Poole Avenue Hazlet, NJ 07730-2041 Bankruptcy Case No.: 11-33977 Chapter 11 Petition Date: August 11, 2011 Court: U.S. Bankruptcy Court District of New Jersey (Trenton) Judge: Raymond T. Lyons, Jr. Debtor's Counsel: Joseph Casello, Esq. COLLINS, VELLA & CASELLO 1451 Highway 34 South, Suite 303 Farmingdale, NJ 07727 Tel: (732) 751-1766 Fax: (732) 751-1866 E-mail: jcasello@cvclaw.net Scheduled Assets: $1,200,000 Scheduled Debts: $195,753 A list of the Company's two largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/njb11-33977.pdf The petition was signed by Richard M. Alexander, president. JEFFERSON, AL: Pushes Toward Deal Over $3.2-Bil. Bond Debt ---------------------------------------------------------- Samuel Howard at Bankruptcy Law360 reports that Jefferson County, Ala., on Friday rejected a settlement with Wall Street creditors, but set a path toward refinancing $3.2 billion in bond debt, likely averting what would have been the largest municipal bankruptcy on record. According to Law360, the county commission was expected to vote on a Chapter 9 filing, but instead prolonged negotiations with JPMorgan Chase & Co. and other bondholders that financed an overhaul of the county's crumbling sewer system a decade ago, a project ultimately mired in corruption and failed derivatives transactions. About Jefferson County Jefferson County has its seat in Birmingham, Alabama. It has a population of 660,000. It ended its 2006 fiscal year with a $42.6 million general fund balance, according to Standard & Poor's. Jefferson County is trying to restructure $3.2 billion in sewer debt. A bankruptcy by Jefferson County stands to be the largest municipal bankruptcy in U.S. history. It could beat the record of $1.7 billion set by Orange County, California in 1994. In September 2010, Alabama Circuit Court Judge Albert Johnson named John S. Young Jr. LLC as receiver for the sewer system. Jefferson County has retained Kenneth Klee, Esq., at Klee Tuchin Bogdanoff & Stern LLP to represent the county in the event of bankruptcy. Mr. Klee is considered to be a municipal-bankruptcy expert, having handled Orange County, Calif.'s bankruptcy case in 1994. JOJO'S PARTNERS: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: JoJo's Partners, LLC 2923 Chino Ave H-1 Chino Hills, CA 91709 Bankruptcy Case No.: 11-21297 Chapter 11 Petition Date: August 11, 2011 Court: United States Bankruptcy Court Central District Of California (Santa Ana) Judge: Mark S. Wallace Debtor's Counsel: Carolyn Dillinger, Esq. THE DILLINGER LAW FIRM P.C. 65 Enterprise Aliso Viejo, CA 92656 Tel: (949) 830-4717 Fax: (949) 271-4717 Scheduled Assets: $51,440 Scheduled Debts: $1,713,806 Affiliate that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- JoJo's Pizza Kitchen Inc 11-21300 8/11/11 Assets: $0 to $50,000 Debts: $1,000,001 to $10,000,000 A list of JoJo's Partners' 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb11-21297.pdf A list of JoJo's Pizza's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb11-21300.pdf The petitions were signed by Joseph P. Bonafede, member. JOSEPH GROUP: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Joseph Group, Inc. 2923 Chino Ave H-1 Chino Hills, CA 91709 Bankruptcy Case No.: 11-21301 Chapter 11 Petition Date: August 11, 2011 Court: United States Bankruptcy Court Central District Of California (Santa Ana) Judge: Mark S. Wallace Debtor's Counsel: Carolyn Dillinger, Esq. THE DILLINGER LAW FIRM P.C. 65 Enterprise Aliso Viejo, CA 92656 Tel: (949) 830-4717 Fax: (949) 271-4717 Scheduled Assets: $97,136 Scheduled Debts: $331,892 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb11-21301.pdf The petition was signed by Joseph P. Bonafede, president. KENTS MUFFLER: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Kents Muffler and Brake, Inc. 12243 South Galena Park Boulevard Draper, UT 84020 Bankruptcy Case No.: 11-31830 Chapter 11 Petition Date: August 12, 2011 Court: United States Bankruptcy Court District of Utah (Salt Lake City) Judge: R. Kimball Mosier Debtor's Counsel: Eric C. Singleton, Esq. THE SINGLETON GROUP, PLLC 307 West 200 South, Suite 2002 Salt Lake City, UT 84101 Tel: (801) 214-9200 Fax: (801) 214-9201 E-mail: eric@thesingletongroup.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. The petition was signed by Kent Winters, president. Affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Kent's Muffler & Auto 11-29455 06/27/11 KV PHARMACEUTICAL: Completes Sale of Divested Assets to Zydus ------------------------------------------------------------- K-V Pharmaceutical Company announced the completion and closing of the previously announced sale of assets of Nesher Pharmaceuticals, Inc., the Company's wholly-owned generic subsidiary, and the Company's generic business and assets to Zydus Pharmaceuticals (USA), Inc and Zynesher Pharmaceuticals (USA) LLC. The aggregate sales price for the transaction is $60 million of which $7.5 million will be held in an escrow arrangement for post- closing indemnification purposes. The purchase includes the physical assets associated with the Company's generic business, including certain manufacturing, packaging and laboratory facilities, certain intellectual property, existing and future product opportunities, as well as equipment specific to the generic business. Separately, the Company entered into a supply agreement with Zydus Pharmaceuticals, Inc., to provide third-party manufacturing services for Clindesse and Gynazole-1. Greg Divis, the Company's chief executive officer and president of Ther-Rx Corporation, stated, "This divestiture is in-line with our announced efforts to focus our future product roadmap in the specialty branded pharmaceutical sector. The net proceeds from the transaction will strengthen our financial position and liquidity, while exiting the generics business will immediately reduce our quarterly cash outlays. Moving forward, we will continue working towards making important progress with MakenaTM, returning our branded anti-infective products back to market and supporting additional growth potential for EvamistTM." U.S. Bank Modification Agreement On Aug 8, 2011, MECW, LLC, a wholly-owned subsidiary of the Company, and U.S. Bank, National Association, as Trustee for the registered holders of J.P. Morgan Chase Commercial Mortgage Securities Corp., Commercial Mortgage Pass-Through Certificates, Series 2006-LDP7, entered into a Note, Deed of Trust, Leasehold Deed of Trust, Security Agreement, Fixture Filing, and Other Loan Documents Modification and Spreader Agreement. Pursuant to the Modification Agreement, MECW and the Lender agreed to modify the Promissory Note, dated March 23, 2006, between MECW, LLC, and LaSalle National Bank Association, the Deed of Trust, Leasehold Deed of Trust, Security Agreement and Fixture Filing dated March 23, 2006, by MECW, LLC, in favor of a trustee, for the benefit of LaSalle Bank National Association, and other loan documents associated therewith. Under the Modification Agreement, the Lender agreed to: (i) waive certain financial reporting requirements under the Loan Documents; (ii) not enforce the minimum net worth requirement contained in the Company's guaranty of MECW's obligations under the Loan Documents, until the financial quarter ending March 31, 2015, at which time the Company will be required to again be in compliance with the net worth requirements contained therein; (iii) release Particle Dynamics, Inc., a New York corporation, and ETHEX Corporation, a Missouri corporation, as guarantors under certain of the Loan Documents; (iv) consent to termination of the Lease Agreement dated as of Dec. 1, 2005, by and between St. Louis County, Missouri and the Company and the related industrial revenue bonds and the amendment and restatement of certain subleases under the Chapter 100 Arrangement; and (v) consent to the sublease of a portion of the property mortgaged pursuant to the Loan Documents to Zynesher Pharmaceuticals (USA) LLC. In addition, MECW and the Lender agreed to these modifications to the Loan Documents: (i) that the requirement under the Loan Documents for MECW to make payments to a reserve account held by the Lender to fund capital repairs and improvements would be reinstated and would continue until such time as the Company has a net worth of at least $250,000,000 and no other default exists under the Loan Documents; (ii) that the Buyer would be required to comply, on a going forward basis, with all financial reporting requirements under the Loan Documents; and (iii) that the Loan Documents would be modified to reflect the termination of the Chapter 100 Arrangement. 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. LIBERTY STATE: N.J. Attorney General Wants Case Dismissed --------------------------------------------------------- Jacqueline Palank, writing for Dow Jones' Daily Bankruptcy Review, reports that New Jersey Attorney General Paula Dow is urging the Bankruptcy Court to dismiss the Chapter 11 case filed by Liberty State Financial Holdings Corp., saying it inappropriately filed for bankruptcy protection to escape pending state litigation accusing it of engaging in a "massive fraud." The Attorney General said the case should be dismissed so that the company can't run from a lawsuit accusing its officials of violating state securities laws by allegedly defrauding investors in the life- insurance policies it acquired. Dow Jones reports that Judge Kevin Gross on Thursday denied Liberty State's request to enforce the automatic stay against the attorney general and directed the parties to return to court on Aug. 26, when a judge will take up the Attorney General's request to have the case dismissed as well as any objections that come in. Liberty State's bankruptcy attorneys weren't immediately available for comment Friday. Dow Jones recounts that the New Jersey Bureau of Securities in March sued Liberty State and an affiliate in state court, accusing them of violating state securities laws by failing to register the securities it sold--stakes in irrevocable life insurance trusts. Dow alleged that Liberty State officials wrongfully diverted millions of dollars of funds from "innocent investors," many of whom were "elderly and impaired individuals," for their personal benefit. As part of that action, Liberty State agreed to the appointment of a fiscal agent to investigate its use of investor funds as well as its financial condition. That agent filed a report in early July, describing securities violations, gross mismanagement and fraudulent acts by the company's controlling officials. The agent also recommended expanding his role to serve as receiver for the company and its assets. Several weeks later, Liberty State and two affiliates filed for Chapter 11 protection in Wilmington, Delaware. LIQUIDMETAL TECHNOLOGIES: Posts $2.9-Mil. Income in 2nd Quarter --------------------------------------------------------------- Liquidmetal Technologies, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a comprehensive income of $2.93 million on $3.64 million of revenue for the three months ended June 30, 2011, compared with a comprehensive loss of $1.22 million on $2.20 million of revenue for the same period a year ago. The Company also reported a comprehensive loss of $6.21 million on $6.50 million of revenue for the six months ended June 30, 2011, compared with a comprehensive loss of $1.17 million on $4.90 million of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $14.17 million in total assets, $36.87 million in total liabilities and a $22.69 million total shareholders' deficiency. A full-text copy of the Form 10-Q is available for free at: http://is.gd/W7P0VQ About Liquidmetal Technologies Based in Rancho Santa Margarita, Calif., Liquidmetal Technologies, Inc. and its subsidiaries are in the business of developing, manufacturing, and marketing products made from amorphous alloys. Liquidmetal Technologies markets and sells Liquidmetal(R) alloy industrial coatings and also manufactures, markets and sells products and components from bulk Liquidmetal alloys that can be incorporated into the finished goods of its customers across a variety of industries. The Company also partners with third- party licensees and distributors to develop and commercialize Liquidmetal alloy products. The Company classifies operations into two reportable segments: Liquidmetal alloy industrial coatings and bulk Liquidmetal alloys. Choi, Kim & Park LLP, in Los Angeles, Calif., expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The Company has experienced losses from continuing operations during the last three fiscal years and has an accumulated deficit of $165,879 as of Dec. 31, 2010. Net cash provided by continuing operations for the year ended Dec. 31, 2010 was $10,080. At Dec. 31, 2010, working capital deficit was $14,180. As of Dec. 31, 2010, the Company's principal source of liquidity is $5,049 of cash and $1,731 of trade accounts receivable. The Company's restated statement of operations reflects a net loss of $4.69 million on $30.27 million of revenue for the year ended Dec. 31, 2010, compared with net income of $251,000 on $16.94 million of revenue during the prior year. LOCAL INSIGHT: Files Plan of Reorganization; Sees Q4 Exit --------------------------------------------------------- Local Insight Media Holdings, Inc. disclosed that the company and its subsidiaries currently acting as debtors in possession under Chapter 11 of the United States Bankruptcy Code have filed a Joint Plan of Reorganization (the "Plan") and Disclosure Statement with the United States Bankruptcy Court for the District of Delaware. With this filing, the Company expects to emerge from Chapter 11 during the fourth quarter of 2011. Under the Plan, which is subject to the confirmation of the Court, the company will emerge with a new credit facility and total debt reduced by more than 90 percent. The Company's senior secured debt will be exchanged for equity in the reorganized company. The Plan has the support of the steering committee of the Company's pre-petition senior secured lenders. "The filing of our Plan of Reorganization and Disclosure Statement is a vital step toward our successful emergence from Chapter 11," said Scott Brubaker, interim president and CEO. "The Plan will enable us to substantially reduce our debt and emerge with a manageable capital structure and stronger financial foundation. As a result, we will be better positioned to meet our advertisers' needs for local search solutions." As part of this process, the Company anticipates holding a hearing on the adequacy of the Disclosure Statement in late September 2011. After receiving approval of its Disclosure Statement, the Company expects to solicit approval of the Plan by the necessary classes of creditors and hold a confirmation hearing on the Plan. The Company's legal advisor is Kirkland & Ellis LLP and its investment banker is Lazard Freres & Co LLC. Alvarez & Marsal has served as the Company's restructuring advisor. About Local Insight Media Local Insight Media Holdings, Inc., through its subsidiary The Berry Company LLC, is a leading provider of local search solutions, generating leads for its advertising clients and enabling consumers to efficiently find the products and services they need. The Berry Company serves approximately 225,000 advertising clients in 41 states, publishing approximately 850 print Yellow Pages directories on behalf of approximately 115 telco and other customers. As an authorized reseller of YP.com(TM) in all of its markets, The Berry Company provides its clients with online listings and video advertising through this leading national Internet Yellow Pages site. The Berry Company also provides small and medium-sized businesses with website development and search engine marketing services, and is a Google(TM) Qualified Company. LOS ANGELES DODGERS: Committee Taps Pinckney Harris as Counsel -------------------------------------------------------------- The Official Committee of Unsecured Creditors of Los Angeles Dodgers LLC and its affiliated Debtors asks the U.S. Bankruptcy Court for the District of Delaware for permission to retain Pinckney, Harris & Weidinger, LLC as its counsel to advise the Committee with respect to its rights, duties and powers in the Chapter 11 cases. The firm's professionals and their compensation rates: Professional Designation Hourly Rate ------------ ----------- ----------- Donna L. Harris, Esq. member $375 Joanne P. Pinckney, Esq. member $375 Kevin M. Capuzzi, Esq. associate $260 Nicole O'Brien paralegal $160 Caitlin Drueding paralegal $160 The Committee assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About the Los Angeles Dodgers Los Angeles Dodgers LLC operates the Los Angeles Dodgers, a professional Major League Baseball club in the Los Angeles metropolitan area. Frank McCourt, a Boston real-estate developer who unsuccessfully bid for the Boston Red Sox, bought the Dodgers from Rupert Murdoch's Fox Entertainment Group, Inc. in 2004 for $330 million. Mr. McCourt also bought the Dodgers Stadium from Fox for $100 million. Los Angeles Dodgers LLC filed for bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12010) on June 27, 2011, after MLB Commissioner Bud Selig rejected a television deal with News Corp.'s Fox Sports, leaving Mr. McCourt unable to make payroll for June 30 and July 1. Fox Sports has exclusive cable television rights for Dodgers games until the end of 2013 baseball season. Chapter 11 filings were also made for LA Real Estate LLC, an affiliated entity which owns Dodger Stadium, and three other related holding companies. The petition estimates assets of up to $500 million and debts of up to $1 billion. According to Forbes, the team is worth about $800 million, making it the third most valuable baseball team after the New York Yankees and the Boston Red Sox. Judge Kevin Gross presides over the case. Lawyers at Young, Conaway, Stargatt & Taylor and Dewey & LeBoeuf LLP serve as the Debtors' bankruptcy counsel. Epiq Bankruptcy Solutions LLC is the claims and notice agent. Thomas Lauria, Esq., at White & Case, represents MLB. Attorneys at Morrison & Foerster LLP and Pinckney, Harris & Weidinger, LLC, serve as counsel to the Official Committee of Unsecured Creditors. The LA Dodgers is the 12th professional sports team in North America to have sought bankruptcy protection, and the fifth baseball club to have done so, after the Texas Rangers in 2010; the Chicago Cubs in 2009; the Baltimore Orioles in 1993; and the Seattle Pilots in 1970. The other seven teams were from the National Hockey League, including the Phoenix Coyotes in 2009. LOS ANGELES DODGERS: Wants Schedules Deadline Moved to Aug. 26 -------------------------------------------------------------- Los Angeles Dodgers LLC and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to extend the deadline to file the schedules of assets and liabilities, and statements of financial affairs until Aug. 26, 2011. The Debtors' current filing deadline has expired on July 27, 2011. The Debtors tell the Court that they have been diligently working to process, compile, and prepare the information necessary to complete the schedules and statements. The Debtors assure the Court that the request for extension of time will not prejudice or adversely affect the rights of the Debtors' creditors and other parties-in-interest. A hearing is set for Aug. 16, 2011, at 10:00 a.m., to consider the Debtors' request for extension of time. About the Los Angeles Dodgers Los Angeles Dodgers LLC operates the Los Angeles Dodgers, a professional Major League Baseball club in the Los Angeles metropolitan area. Frank McCourt, a Boston real-estate developer who unsuccessfully bid for the Boston Red Sox, bought the Dodgers from Rupert Murdoch's Fox Entertainment Group, Inc. in 2004 for $330 million. Mr. McCourt also bought the Dodgers Stadium from Fox for $100 million. Los Angeles Dodgers LLC filed for bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12010) on June 27, 2011, after MLB Commissioner Bud Selig rejected a television deal with News Corp.'s Fox Sports, leaving Mr. McCourt unable to make payroll for June 30 and July 1. Fox Sports has exclusive cable television rights for Dodgers games until the end of 2013 baseball season. Chapter 11 filings were also made for LA Real Estate LLC, an affiliated entity which owns Dodger Stadium, and three other related holding companies. The petition estimates assets of up to $500 million and debts of up to $1 billion. According to Forbes, the team is worth about $800 million, making it the third most valuable baseball team after the New York Yankees and the Boston Red Sox. Judge Kevin Gross presides over the case. Lawyers at Young, Conaway, Stargatt & Taylor and Dewey & LeBoeuf LLP serve as the Debtors' bankruptcy counsel. Epiq Bankruptcy Solutions LLC is the claims and notice agent. Thomas Lauria, Esq., at White & Case, represents MLB. Attorneys at Morrison & Foerster LLP and Pinckney, Harris & Weidinger, LLC, serve as counsel to the Official Committee of Unsecured Creditors. The LA Dodgers is the 12th professional sports team in North America to have sought bankruptcy protection, and the fifth baseball club to have done so, after the Texas Rangers in 2010; the Chicago Cubs in 2009; the Baltimore Orioles in 1993; and the Seattle Pilots in 1970. The other seven teams were from the National Hockey League, including the Phoenix Coyotes in 2009. MAYSVILLE, INC.: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Maysville, Inc. 520 Brickell Key Drive, #1021 Miami, FL 33131 Bankruptcy Case No.: 11-32532 Chapter 11 Petition Date: August 11, 2011 Court: U.S. Bankruptcy Court Southern District of Florida (Miami) Judge: Laurel M. Isicoff Debtor's Counsel: Jeffrey P. Bast, Esq. BAST AMRON LLP 1 SE 3 Avenue, #1440 Miami, FL 33131 Tel: (305) 379-7904 Fax: (305) 379-7905 E-mail: jbast@bastamron.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Alex Redondo, president. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ MUNB Holdings Deficiency $11,936,327 1221 Brickell Avenue Miami, FL 33131 Murai Wald, Biondo & Moreno PA Professional Services $22,685 1200 Ponce de Leon Boulevard Miami, FL 33134 James Quinn Construction Claim $15,000 2 S. Biscayne Bloulevard, Suite 2475 Miami, FL 33131 Susan Gonzalez Personal Injury $15,000 255 Alhambra Circle, Suite 630 Claim Miami, FL 33134 Paragon Painting & Waterproofing, Trade Debt $13,663 Inc. City of Miami Finance Department Impact Fees $11,743 Ehrenstein, Charbonneau Calderin, Professional Services $11,423 PA Tew Cardenas LLP Professional Services $10,574 Greenberg Traurig Professional Services $7,742 Centrelix/Otis Elevator Trade Debt $1,100 Home Depot/Citibank Supplies $100 Aaron Wegner Rent Deposit Unknown Abe Diamond Rent Deposit Unknown Ada Bueso Rent Deposit Unknown Agung Bayu Rent Deposit Unknown Ainsley Bienvenu & Jaqueline Rent Deposit Unknown Krasen Alejandro Travesani Rent Deposit Unknown Alex Fairchild Rent Deposit Unknown Alicia Garcia Rent Deposit Unknown Alvaro Garcia Rent Deposit Unknown MCCLATCHY CO: Bestinver Gestion Holds 4.90% of Class A Shares ------------------------------------------------------------- In a Schedule 13G filing with the U.S. Securities and Exchange Commission, Bestinver Gestion S.A., SGIIC, disclosed that it beneficially owns 2,958,206 shares of Class A common stock of The McClatchy Company representing 4.90% of the shares outstanding. As of July 29, 2011, the Company had 60,402,712 shares of Class A common stock outstanding. A full-text copy of the regulatory filing is available for free at http://is.gd/dilntV About The McClatchy Company Sacramento, Calif.-based The McClatchy Company (NYSE: MNI) -- http://www.mcclatchy.com/-- is the third largest newspaper company in the United States, publishing 30 daily newspapers, 43 non-dailies, and direct marketing and direct mail operations. McClatchy also operates leading local websites in each of its markets which extend its audience reach. The websites offer users comprehensive news and information, advertising, e-commerce and other services. Together with its newspapers and direct marketing products, these interactive operations make McClatchy the leading local media company in each of its premium high growth markets. McClatchy-owned newspapers include The Miami Herald, The Sacramento Bee, the Fort Worth Star-Telegram, The Kansas City Star, The Charlotte Observer, and The News & Observer (Raleigh). The Company's balance sheet at June 30, 2011, showed $3.05 billion in total assets, $2.85 billion in total liabilities, current and non-current, and $203.47 million in total stockholders' equity. * * * In February 2010, Moody's Investors Service upgraded The McClatchy Company's Corporate Family Rating to Caa1 from Caa2, Probability of Default Rating to Caa1 from Caa2, and senior unsecured and unguaranteed note ratings to Caa2 from Caa3, concluding the review for upgrade initiated on January 27, 2010. The upgrades reflect McClatchy's improved liquidity position and reduced near-term default risk following completion of the company's refinancing, and its ability to stabilize EBITDA performance through significant cost reductions. The rating outlook is stable. In the May 12, 2011, edition of the TCR, Standard & Poor's Ratings Services lowered its corporate credit rating on Sacramento, Calif.-based The McClatchy Co. to 'B-' from 'B'. "The downgrade reflects our expectation that continued declines in advertising revenues will outweigh the company's cost reduction measures, resulting in steadily rising debt leverage over the intermediate term despite some modest debt reduction that will likely occur over the near term," said Standard & Poor's credit analyst Harold Diamond. The 'B-' corporate credit rating on Sacramento, Calif.- based McClatchy reflects Standard & Poor's expectation that advertising revenues will decline at a high-single-digit% rate in 2011, and EBITDA will fall at a mid-double-digit pace. As reported by the Troubled Company Reporter on Feb. 8, 2011, Fitch Ratings has upgraded the Issuer Default Rating of the McClatchy Company to 'B-'. The Rating Outlook is Stable. The revenue declines endured by McClatchy in 2010 were materially lower than Fitch's expectation. Fitch had modeled declines in the mid-teens versus actual declines in the mid-single digits. While Fitch expected the company to focus on cost containment, the company's success exceeded Fitch expectations. Fitch had expected EBITDA to decline more than 10% versus actual EBITDA growth in the mid-single digits. As a result absolute debt and leverage were better than Fitch expectations. Fitch estimates 2010 year end gross unadjusted leverage of approximately 4.7 times. Fitch expects the company will be able to meet its pension funding obligations and satisfy all of its maturities up to and including its senior unsecured notes due in 2014 ($169 million balance as of Sept. 30, 2010). Also, Fitch does not expect McClatchy will have any issues meeting its credit agreement financial covenants (under both Fitch's base and stress cases). MERCANTILE BANCORP: Lee Keith Appointed Interim President and CEO ----------------------------------------------------------------- Mercantile Bancorp, Inc., announced that Lee R. Keith has been appointed, effective Aug. 8, 2011, as the acting and interim President and CEO of the Company and Chairman of Mercantile Bank. The appointment is contingent on the approval of the Federal Deposit Insurance Corporation and Federal Reserve Bank. Keith replaces Ted T. Awerkamp, who has served as President and CEO of the Company and as Chairman of Mercantile Bank since 2007. Keith has been a director of the Company and Mercantile Bank since 2009 and will continue in that role. "We are pleased to have someone of Lee Keith's experience join our management team," said Michael J. Foster, Chairman of the Company. "Lee's over 33 years in the banking industry and, in particular, his leadership in restoring six problem banks to a financially sound position make him an excellent leader to move Mercantile forward in these difficult times." Foster thanked Awerkamp for his service. "Ted has served our company faithfully since 1984 in a variety of operational and management roles," said Foster. "We are grateful for his tireless and loyal service, especially during the recent years of turmoil in the banking industry and overall economy." As compensation for Mr. Keith's executive employment, the Company has agreed to pay him an annual salary of $300,000 and to provide him with temporary housing for six months and an automobile. There is no written employment agreement with Mr. Keith. On Aug. 10, 2011, the Illinois Division of Banking released a Consent Order that Mercantile Bank, the Federal Deposit Insurance Corporation, and the Division entered into as of July 28, 2011. Under the Order, Mercantile Bank will cease operating with all money transmitters and currency businesses providing brokerage, sale or exchange of non-United States currency for deposit customers. Furthermore, Mercantile Bank may not enter into a new line of business without the prior written consent of the FDIC and the Division. About Mercantile Bancorp -- http://www.mercbanx.com/-- is a Quincy, Illinois-based bank holding company with wholly owned subsidiaries consisting of one bank in Illinois and one each in Kansas and Florida, where the Company conducts full-service commercial and consumer banking business, engages in mortgage banking, trust services and asset management, and provides other financial services and products. The Company also operates Mercantile Bank branch offices in Missouri and Indiana. The Company's balance sheet as of March 31, 2011, showed $904.0 million in total assets, $909.3 million in total liabilities, and a stockholders' deficit of $5.3 million. As reported in the TCR on April 26, 2011, BKD, LLP, in Decatur, Illinois, expressed substantial doubt about Mercantile Bancorp's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered recurring losses resulting from the effects of the economic downturn causing its subsidiary banks to be undercapitalized and resulting in consent orders to be issued by their primary regulators. MERRITT AND WALDING: Files List of 18 Largest Unsecured Creditors ----------------------------------------------------------------- Merritt and Walding Properties, LLP, has filed with the U.S. Bankruptcy Court for the Southern District of Alabama a list of its 18 largest unsecured creditors: Entity Claim Amount ------ ------------ Regions Bank $508,063.47 106 St. Francis Street Secured Value: Mobile, AL 36602 $852,582.00 Regions Bank $350,000.00 106 St. Francis Street Secured Value: Mobile, AL 36602 $150,000.00 Regions Bank $222,943.42 106 St. Francis Street Secured Value: Mobile, AL 36602 $100,000.00 Regions Bank $5,057.95 Secured Value: $350,000.00 Surety Land Title $75,000.00 Southpoint Bank $15,000.00 Bank Trust $3,27_.96 Secured Value: $8,500.00 Alabama Department of Revenue $1.00 Bank Trust $1.00 BMW $1.00 Jennifer M. Merritt $1.00 Marsha A. Walding $1.00 Martha W. Blow $1.00 Merritt Oil Company, Inc. $1.00 R. Fred Walding $1.00 Richard E. Blow $_.00 Richard T. Merritt $1.00 The McPherson Companies $1.00 About Merritt and Walding Properties Merritt and Walding Properties, LLP, in Pt. Clear, Alabama, filed for Chapter 11 bankruptcy (Bankr. S.D. Ala. Case No. 11-02322) on June 10, 2011. Irvin Grodsky, P.C., serves as the Debtor's bankruptcy counsel. In its petition, the Debtor estimated assets and debts of $10 million to $50 million. The petition was signed by Richard T. Merritt and R. Fred Walding, as general partners. In its schedules, the Debtor disclosed $6,166,757 in total assets and $7,685,591 in total debts. An affiliate of the Debtor, Richard T. Merritt (Bankr. S.D. Ala. Case No. 11-00380) filed for bankruptcy on Feb. 1, 2011. An Official Committee of Unsecured Creditors has not been appointed in the case. MGI, LLC: Voluntary Chapter 11 Case Summary ------------------------------------------- Debtor: MGI, LLC P.O. Box 1366 Columbia, MO 65205 Bankruptcy Case No.: 11-21410 Chapter 11 Petition Date: August 11, 2011 Court: U.S. Bankruptcy Court Western District of Missouri (Jefferson City) Judge: Dennis R. Dow Debtor's Counsel: John C. Reed, Esq. PLETZ & REED P.O. Box 1048 Jefferson City, MO 65102 Tel: (573) 635-8500 Fax: (573) 634-3079 E-mail: jreedlaw@aol.com Scheduled Assets: $580,000 Scheduled Debts: $1,245,522 The Company did not file a list of creditors together with its petition. The petition was signed by George Dodge, member. MIAMI-DADE COUNTY: Moody's Reviews B3 Rtng for Possible Upgrade --------------------------------------------------------------- Moody's Investors Service has placed the B3 rating of Housing Finance Authority Miami-Dade County, FL, Home Ownership Mortgage Revenue Bonds Series 2006B-2 under review for possible upgrade, affecting $825,000 of outstanding debt. Moody's has reviewed updated cash flows on the consolidated bond program which indicate that the 2006B-2 bonds may benefit from excess revenue from the program thereby reducing their reliance on second loan payments. As part of Moody's review Moody's will analyze additional cash flow scenarios on the program. The principal methodology used in this rating was Strength in Structure: Moody's Approach to Rating Single Family Housing Bonds Secured by Mortgage-Backed Securities published in October 1998. MICHAELS STORES: Bank Debt Trades at 7% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Michaels Stores, Inc., is a borrower traded in the secondary market at 93.16 cents- on-the-dollar during the week ended Friday, Aug. 12, 2011, a drop of 4.94 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 225 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 31, 2013, and carries Moody's B2 rating and Standard & Poor's B+ rating. The loan is one of the biggest gainers and losers among 72 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Michaels Stores, Inc., is a specialty retailer in North America providing materials, project ideas, and education for creative activities in arts and crafts, home, and scrapbooking. The Company also offers project sheets on its Internet site, www.michaels.com, and Webisodes demonstrating techniques to make seasonal crafts, gifts, and more at www.WhereCreativityHappens.com. In addition, it offers a variety of classes, demonstrations, and family-focused make-it and take-it events. As of March 27, 2010, it operated 1,028 Michaels retail stores in 49 states, as well as in Canada, averaging 18,300 square feet of selling space per store. Its stores offer arts and crafts supplies and products for the crafter and do-it-yourself home decorator. It also operated 148 Aaron Brothers stores, as of March 27, 2010, in nine states, averaging 5,600 square feet of selling space per store, offering photo frames, a line of ready- made frames, custom framing services, and a selection of art supplies. Michaels Stores reported net income of $37.0 million on net sales of $953.0 million for the quarter ended April 30, 2011, as compared with net income of $13.0 million on net sales of $901.0 million for the comparable prior year period. As of April 30, 2011, the Company's balance sheet showed $1.63 billion in total assets and $4.26 billion in total liabilities, resulting in $2.62 billion total stockholders' deficit. MIN PARK: Voluntary Chapter 11 Case Summary ------------------------------------------- Debtor: Min Sung Park dba Central Avenue Grill Osaka Grill Osaka Grill & Seafood 116 San Juan Street Los Alamos, NM 87544 Bankruptcy Case No.: 11-13661 Chapter 11 Petition Date: August 12, 2011 Court: U.S. Bankruptcy Court District of New Mexico (Albuquerque) Judge: Robert H. Jacobvitz Debtor's Counsel: Koo Im Sakayo Tong, Esq. MOORE, BERKSON, & GANDARILLA, P.C. P.O. Box 7459 Albuquerque, NM 87194 Tel: (505) 242-1218 Fax: (505) 242-2836 E-mail: kooimt@swcp.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 creditors together with its petition. MT. ZION: PNC Bank Objects to Second Amended Plan ------------------------------------------------- PNC Bank, National Association objects to the Second Amended Plan of Reorganization, dated March 29, 2011, of Mt. Zion Limited Partnership on the grounds set forth in its objection to the Debtors' First Amended Plan, dated Aug. 3, 2010. PNC Bank asserts that the Second Amended Plan fails to satisfy Section 1129(a)(1) of the Bankruptcy Code and cannot be confirmed. PNC Bank holds a claim against the Debtor under certain notes and loan documents in the aggregate amount of $29,825,110, secured by, inter alia, mortgage liens on the Debtor's real property consisting of an apartment complex located at 550 Mt. Zion Drive, in Florence, Boone County, Kentucky. On May 4, 2011, the Court determined the value of the Property to be $28,100,000. PNC Bank has a secured claim of $28,100,000 and an unsecured deficiency claim of $1,725,110. According to Ronald Barliant, Esq., at Goldberg Kohn Ltd., in Chicago, Illinois, the Debtor improperly classifies PNC Bank's Deficiency Claim in a class -- Class 1A -- separate from the class of claims of the Debtor's other general unsecured creditors -- Class 5. The Second Amended Plan also fails to remedy the defects of the Plan to which PNC Bank objected in its First Objection, which objections were granted, in part, pursuant to the Court's October 25, 2010 order. If the Deficiency Claim is properly classified in Class 5, PNC Bank's rejection of the Second Amended Plan means that neither impaired class accepts it and, consequently, the Second Amended Plan cannot be confirmed, Mr. Barliant points out. The Debtor's "obvious objective is to classify the Deficiency Claim on the basis of how [PNC Bank] intends to vote" its claim, Mr. Barliant contends. He argues that this is illegitimate under Section 1122(a) of the Bankruptcy Code. About Mt. Zion Limited Partnership Lake Forest, Illinois-based Mt. Zion Limited Partnership, dba Woodspring Apartments, owns and operates a residential apartment project located in Florence, Kentucky, known as Woodspring Apartments. The Company filed for Chapter 11 protection (Bankr. N.D. Ill. Case No. 10-18075) on April 23, 2010. David K Welch, Esq., at Crane Heyman Simon Welch & Clar, assists the Debtor in its restructuring effort. The Company estimated its assets and debts at $10 million to $50 million as of the Petition Date. MWM CARVER: Can Use Fannie Mae Cash Collateral Until Aug. 31 ------------------------------------------------------------ MWM Carver Terrace, LLC, and the Federal National Mortgage Association entered into a stipulation and consent order, which extended the termination deadline for the use of cash collateral through and including Aug. 31, 2011. As reported in the Troubled Company Reporter, a loan for the purchase of the Debtor's residential apartment building was provided by Citibank pursuant to a certain a fixed rate promissory note, in the original principal amount of $9.60 million, which is secured by a first position lien and security interest in the Property pursuant to a Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing dated Aug. 31, 2007, and duly recorded among the land records of the District of Columbia. On Dec. 18, 2007, Citibank assigned all of its right, title and interest in and to the Note, the security instrument and the assignment of rents to Fannie Mae. As of Nov. 30, 2010, after Fannie Mae accelerated the Loan, it asserted that in excess of $8.3 million was owed by the Debtor. Brent C. Strickland, Esq., at Whiteford, Taylor & Preston L.L.P., explains that the Debtor needs the money to fund its Chapter 11 case, pay suppliers and other parties. The Debtor will use the collateral pursuant to a budget, a copy of which is available for free at http://bankrupt.com/misc/MWM_budget.pdf In exchange for using the cash collateral, the Debtor will grant Fannie Mae: (i) a replacement lien on all the postpetition assets of the Debtor to the extent of diminution in the value of Fannie Mae's interest in cash collateral; and (ii) an administrative priority expense claim to the extent there is a diminution in the value of Fannie Mae's interest in cash collateral. Fannie Mae is represented by: J. David Folds, Esq. McKenna Long & Aldridge LLP 1900 K STREET NW Washington, D.C. 20006 Phone: (202) 496-7521 Fax: (202) 496-7095 About MWM Carver Terrace Washington, DC-based MWM Carver Terrace, LLC, owns a 407-unit residential apartment building located at 901 21st Street NE, in , Washington D.C. The Property occupies 5.78 acres of land and has approximately 252,000 square feet of enclosed improvements. It filed for Chapter 11 bankruptcy protection (Bankr. D.C. Case No. 11-00168) on March 3, 2011. Brent C. Strickland, Esq., at Whiteford, Taylor, & Preston L.L.P., serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets at $10 million to $50 million and debts at $1 million to $10 million. NANCE PROPERTIES: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Nance Properties, Inc. P.O. Box 1625 Swansboro, NC 28584 Bankruptcy Case No.: 11-06197 Chapter 11 Petition Date: August 12, 2011 Court: U.S. Bankruptcy Court Eastern District of North Carolina (Wilson) Judge: J. Rich Leonard Debtor's Counsel: Trawick H. Stubbs, Jr., Esq. STUBBS & PERDUE, P.A. P.O. Drawer 1654 New Bern, NC 28563 Tel: (252) 633-2700 Fax: (252) 633-9600 E-mail: efile@stubbsperdue.com Scheduled Assets: $1,253,102 Scheduled Debts: $2,880,122 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/nceb11-06197.pdf The petition was signed by Joseph R. Nance, president. NCO GROUP: S. Leckerman to Quit; J. Jones Assumes EVP & COO Roles ----------------------------------------------------------------- NCO Group, Inc., announced that Steven Leckerman, executive vice president and chief operating officer, will be leaving the Company by Oct. 31, 2011, to pursue other opportunities. Effective immediately, Jack Jones will assume the role of Executive Vice President and COO. Mr. Jones, 56, spent over 25 years with JPMorgan Chase where he was most recently Senior Vice President and Managing Director of Global Solutions responsible for the enterprise wide globalization strategy which included operations involving over 35,000 employees delivering services to all lines of business. He was actively involved in trade associations and business groups in India and the Philippines most notably the Business Processing Association of the Philippines and Nasscom, India's leading BPO and Technology Association. Mr. Jones also spent several years leading credit services for card operations as well as other key roles within the banking systems of JPMorgan Chase and Wachovia. JPMorgan Chase is an affiliate of the Company. Mr. Jones will receive an annual base salary of $500,000 per annum. Mr. Jones will also be eligible to receive an annual bonus (with a target bonus of 100% of base salary) based upon achievement of performance objectives, as mutually agreed to by Mr. Jones and the Compensation Committee of the Board of Directors of the Company. Mr. Jones will be eligible to receive equity, stock options, or other equity-based awards, as determined in the sole discretion of the Compensation Committee. Mr. Jones will also be eligible to receive other perquisites and benefits, as determined in the sole discretion of the Compensation Committee. About NCO Group Inc. Based in Horsham, Pennsylvania, NCO is a global provider of business process outsourcing services, primarily focused on accounts receivable management and customer relationship management. NCO has over 25,000 full and part-time employees who provide services through a global network of over 100 offices. The company is a portfolio company of One Equity Partners and reported revenues of about $1.2 billion for the twelve month period ended Sept. 30, 2007. The Company reported a net loss of $155.71 million on $1.60 billion of revenue for the year ended Dec. 31, 2010, compared with a net loss of $88.14 million on $1.58 billion of revenue during the prior year. The Company's balance sheet at March 31, 2011, showed $1.19 billion in total assets, $1.15 billion in total liabilities, and a $44.80 million in total stockholders' equity. * * * As reported by the Troubled Company Reporter on Feb. 2, 2011, Moody's Investors Service downgraded NCO Group, Inc.'s CFR to Caa1 from B3 and changed the outlook to negative. Simultaneously, Moody's has also downgraded each of NCO's debt instrument ratings by one notch and lower the Speculative Grade Liquidity rating to SGL-4 from SGL3. The downgrade reflects Moody's concern that greater than expected revenue declines and continued earnings pressure will extend beyond current levels due to deteriorating consumer payment patterns and weaker volumes. In addition, Moody's expects financial flexibility will be further aggravated by tightening headroom under its financial covenants and a potential breach of covenants which will limit the company's ability to draw upon its revolver. Also, the company faces an impending maturity on its $100 million senior secured revolving credit facility due November of 2011. NEBRASKA BOOK: Alan G. Siemek Resigns as CFO of NBC's Subsidiaries ------------------------------------------------------------------ NBC Acquisition Corp. discloses that Alan G. Siemek, Vice President, Treasurer and a named executive officer of NBC Acquisition Corp. has elected to resign as Chief Financial Officer of the Company's direct and indirect subsidiaries, including Nebraska Book Company, Inc., effective as of Aug. 31, 2011. Mr. Siemek will continue to serve as Vice President and Treasurer of both the Company and Nebraska Book Company to, among other duties, assist in the transition of the Chief Financial Officer duties and help with the Company's current reorganization efforts under Chapter 11 of the United States Bankruptcy Code. The Company in the interim has named Barry S. Major as Chief Financial Officer. Mr. Major currently holds the position of President and Chief Operating Officer and also sits on the Company's Board of Directors. 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. NEBRASKA BOOK: Committee Taps Steven & Lee as Co-Counsel -------------------------------------------------------- The Official Committee of Unsecured Creditors of Nebraska Book Company Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware for permission to retain Steven & Lee PC as its co-counsel to advise the Committee and represent it with respect to proposals and pleadings submitted by the Debtors or others to the Court. The firm's professionals and their compensation rates: Joseph H. Huston, Jr. Shareholder $610 Maria Aprile Sawczuk Of Counsel $425 Paralegal & legal Assistants $110-$200 The Committee Assures the Court that the firm is a "disinterested person" within the meaning of section 101(14) of the Bankruptcy Code. 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. NET TALK.COM: Buys $2.7MM Office Building from Core Development --------------------------------------------------------------- Net Talk.com, Inc., purchased an existing building located in Miami, Florida, to be used as the Company's corporate offices and operational center. The building, a 21,675 square foot free standing structure, was purchased for $2,700,000 from Core Development Holdings Corporation, which entity has no relationship to the Company. Acquisition was funded internally. On Aug. 8, 2011, the Company entered into First Amendment to Security Purchase Agreement with an accredited institutional investor. Pursuant to the agreement, the Company executed a $2,000,000 Senior Debenture, a full-text copy of which is available for free at http://is.gd/LM3bLH Vicis Capital Master Fund, is entitled to subscribe for and purchase from NetTalk.com, Inc., up to 8,000,000 shares of common stock, par value $.001 per share, of the Company common stock. A full-text copy of the Series E Common Stock Purchase Warrant is available for free at http://is.gd/S8TtaM About Net Talk.com Based in Miami, Fla., Net Talk.com, Inc., is a telephone company, who provides, sells and supplies commercial and residential telecommunication services, including services utilizing voice over internet protocol ("VoIP") technology, session initiation protocol ("SIP") technology, wireless fidelity technology, wireless maximum technology, marine satellite services technology and other similar type technologies. The Company's balance sheet at March 31, 2011, showed $4.74 million in total assets, $38.27 million in total liabilities, all current, $2.55 million in redeemable preferred stock $0.001 par value, and a $36.09 million total stockholders' deficit. Net Talk.com reported a net loss of $6.31 million on $737,498 of revenues for the fiscal year ended Sept. 30, 2010, compared with a net loss of $2.74 million on $115,571 of revenues in fiscal 2009. NEUROLOGIX INC: Incurs Roughly $3-Mil. Net Loss in Second Quarter ----------------------------------------------------------------- Neurologix, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $2.95 million on $0 of revenue for the three months ended June 30, 2011, compared with a net loss of $4.47 million on $0 of revenue for the same period during the prior year. The Company also reported a net loss of $5.03 million on $0 of revenue for the six months ended June 30, 2011, compared with a net loss of $7.97 million on $0 of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $4.96 million in total assets, $13.62 million in total liabilities, and a $8.66 million total stockholders' deficit. The Company had cash and cash equivalents of approximately $3.5 million as of June 30, 2011. Clark A. Johnson, president and chief executive officer of Neurologix, noted that the second quarter financial results were consistent with the Company's expectations. "Neurologix continues to advance the clinical development of NLX-P101, the Company's novel, investigational gene therapy agent for the treatment of Parkinson's disease, and is on track to submit a Phase 3 protocol to the U.S. Food and Drug Administration under a Special Protocol Assessment later in 2011. In the second quarter of this year the Company also initiated the open-label arm of the Company's successful Phase 2 trial of NLX-P101. To date, several patients who participated in our Phase 2 trial for NLX-P101 and received sham surgery have been treated with NLX-P101 in the open-label arm of the Phase 2 trial. The Phase 2 open-label arm was initiated based on the strong efficacy results demonstrated in the randomized Phase 2 trial of NLX-P101, which included one-year follow-up data demonstrating that NLX-P101 provided treated patients with sustained long-term clinical benefits." A full-text copy of the Form 10-Q is available for free at: http://is.gd/BBWcim About Neurologix, Inc. Fort Lee, N.J.-based Neurologix, Inc. (OTC Bulletin Board: NRGX) -- http://www.neurologix.net/-- is a clinical-stage biotechnology company dedicated to the discovery, development, and commercialization of gene transfer therapies for serious disorders of the brain and the central nervous system. The Company's current programs address such conditions as Parkinson's disease, epilepsy, depression and Huntington's disease, all of which are large markets not adequately served by current therapeutic options. The Company reported a net loss of $10.16 million on $0 of revenue for the year ended Dec. 31, 2010, compared with a net loss of $13.46 million on $0 of revenue during the prior year. BDO USA, LLP, in New York, raised substantial doubt about the Company's ability to continue as a going concern. BDO noted that the Company has suffered recurring losses from operations, expects to incur future losses for the foreseeable future and has deficiencies in working capital and capital. NEW BERN RIVERFRONT: 3rd Party Suit v. McKim Survives Dismiss Bid ----------------------------------------------------------------- Bankruptcy Judge J. Rich Leonard declined the request of third- party defendant McKim & Creed, P.A. to dismiss the third-party complaint asserted against it by JDavis Architects, PLLC, saying JDavis properly asserted claims of negligence, contribution and indemnity. The third-party complaint relates to the primary litigation initiated by New Bern Riverfront Development, LLC, against various defendants including JDavis and Weaver Cooke Construction, LLC. NBRD owned real property in Craven County, North Carolina, and developed it into the SkySail Luxury Condominiums, which is the subject of the adversary proceeding. Weaver Cooke, the general contractor for the project, filed a crossclaim against JDavis. NBRD and Weaver Cooke's claims against JDavis prompted JDavis to file the third-party complaint against McKim. NBRD contracted directly with JDavis to serve as the licensed architect on the project. JDavis was charged with designing most of the project's structural elements except for the post- tensioning concrete system. The general contractor, Weaver Cooke, was responsible for hiring a subcontractor to design and construct the PT system, which is a series of cables embedded in concrete structures integrated into the project to provide support. JDavis was responsible for overseeing and designing the manner in which the PT system connected with other structural elements of the project such as the vertical walls adjoining the PT system. JDavis hired McKim to provide professional surveying and civil engineering services for the project overall. After completion of the design and construction of the PT system, the system failed in three separate sections. The failure caused the surrounding concrete to fracture and the reinforcing steel cables to be displaced. NBRD's lawsuit is based, among other things, on the damage done by the failure of the PT system. NBRD asserted claims for breach of contract against Weaver Cooke and JDavis. In response, Weaver Cooke asserted crossclaims for negligence and negligent misrepresentation against JDavis. The claims prompted JDavis to file a third-party complaint against McKim for negligence, implied-in-law indemnity, and contribution. To the extent that JDavis is found liable for any damages suffered by NBRD and/or Weaver Cooke, JDavis asserts such damages were caused by McKim's deviations from its duties of care. JDavis moved to amend its original third-party complaint to add claims of breach of contract and express contractual indemnity. On April 29, 2011, the court granted JDavis' motion, specifying that the allowed amendment did not prohibit McKim from subsequently moving to dismiss the original and added claims. The case is NEW BERN RIVERFRONT DEVELOPMENT, LLC, Plaintiff, v. WEAVER COOKE CONSTRUCTION, LLC; TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA; JDAVIS ARCHITECTS, PLLC; FLUHRER REED, PA; and NATIONAL ERECTORS REBAR, INC. f/k/a NATIONAL REINFORCING SYSTEMS INC., Defendants, and WEAVER COOKE CONSTRUCTION, LLC and TRAVELERS CASUALTY AND SURETY COMPANY OF AMERICA, Defendants, Counterclaimants and Crossclaimants, v. JDAVIS ARCHITECTS, PLLC; FLUHRER REED PA; SKYSAIL OWNERS ASSOCIATION, INC.; WACHOVIA BANK, NATIONAL ASSOCIATION and WELLS FARGO & COMPANY f/d/b/a WACHOVIA CORPORATION, Crossclaim Defendants. And NATIONAL ERECTORS REBAR, INC., Defendant, Counterclaimant, Crossclaimant, and Third-Party Plaintiff, v. ROBERT ARMSTRONG, JR., ROBERT P. ARMSTRONG, JR., INC., SUMMIT DESIGN GROUP, INC., JMW CONCRETE CONTRACTORS, and JOHNSON'S MODERN ELECTRIC COMPANY, INC., Third-Party Defendants. and JDAVIS ARCHITECTS, PLLC, Third-Party Plaintiff, v. McKIM & CREED, P.A., Third-Party Defendant, Adv. Proc. No. 10-00023 (Bankr. E.D.N.C.). A copy of Judge Leonard's Aug. 11, 2011 Order is available at http://is.gd/VnYlaefrom Leagle.com. About New Bern Riverfront Cary, North Carolina-based New Bern Riverfront Development, LLC, is the developer of SkySail Condominium, consisting of 121 residential condominiums (plus 1 commercial/non-residential unit) located on Middle Street on the waterfront in historic downtown New Bern, North Carolina, and sells the SkySail Condominiums in the ordinary course of business. The Debtor filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.C. Case No. 09-10340) on Nov. 30, 2009. John A. Northen, Esq., at Northen Blue, LLP, represents the Debtor. The Company disclosed $31,515,040 in assets and $25,676,781 in liabilities as of the Chapter 11 filing. The Bankruptcy Court will convene a hearing on Sept. 19, 2011, at 3:00 p.m., to consider the confirmation of New Bern Riverfront's Amended Plan of Reorganization dated June 30. Objections to the Plan and ballots accepting or rejecting the Plan are due Aug. 30. The Amended Plan represents a consensual plan of reorganization negotiated with the Debtor's secured creditor, Wells Fargo Bank, N.A. The Debtor contemplates selling properties. NEXSTAR BROADCASTING: Incurs $2.6-Mil. Net Loss in 2nd Quarter -------------------------------------------------------------- Nexstar Broadcasting Group, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $2.58 million on $75.50 million of net revenue for the three months ended June 30, 2011, compared with a net loss of $9.42 million on $74.54 million of net revenue for the same period during the prior year. The Company also reported a net loss of $8.89 million on $145.45 million of net revenue for the six months ended June 30, 2011, compared with a net loss of $13.09 million on $143.16 million of net revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $557.98 million in total assets, $741.41 million in total liabilities, and a $183.42 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/LEzkGz About Nexstar Broadcasting Group Irving, Texas-based Nexstar Broadcasting Group Inc. currently owns, operates, programs or provides sales and other services to 62 television stations in 34 markets in the states of Illinois, Indiana, Maryland, Missouri, Montana, Texas, Pennsylvania, Louisiana, Arkansas, Alabama, New York, Rhode Island, Utah and Florida. Nexstar's television station group includes affiliates of NBC, CBS, ABC, FOX, MyNetworkTV and The CW and reaches approximately 13 million viewers or approximately 11.5% of all U.S. television households. The Company reported a net loss of $1.81 million on $313.35 million of net revenue for the year ended Dec. 31, 2010, compared with a net loss of $12.61 million on $251.97 million of net revenue during the prior year. * * * As reported by the Troubled Company Reporter on Aug. 30, 2010, Standard & Poor's Ratings Services raised its corporate credit rating on Nexstar Broadcasting Group to 'B' from 'B-'. The rating outlook is stable. "The 'B' corporate credit rating reflects S&P's expectation that Nexstar's core ad revenue will continue growing modestly in 2010 and 2011," said Standard & Poor's credit analyst Deborah Kinzer. The EBITDA growth resulting from the rebound in core advertising, combined with political ad revenue from the 2010 midterm elections, should, in S&P's view, enable Nexstar to reduce its leverage significantly by the end of the year. O&G LEASING: First Security to Present Plan Disclosures Sept. 20 ---------------------------------------------------------------- First Security Bank, as indenture trustee for the bonds used to fund the acquisition and construction of the rigs for debtors O&G Leasing, LLC, and Performance Drilling Company, LLC, has submitted a Disclosure Statement for solicitation of votes on its Plan of Reorganization for the Debtors. The Indenture Trustee's Plan represents the culmination of the Trustee's increasing frustration with the persistent attempts by the Debtors, through their Insiders, to leverage the Chapter 11 bankruptcy process, for their own benefit instead of for the benefit of Creditors. The lynchpin of the Trustee's Plan is the proposed 363 Sale of the Debtors' assets and business through an Auction to the highest and best Qualified Bidder. The Indenture Trustee has entered into an Asset Purchase Agreement with wholly-owned subsidiaries of SolstenXP, Inc., to provide the stalking horse bid for the purchase of substantially all the Debtors' assets, subject to higher and better offers from qualified bidders. The Asset Purchase Agreement calls for Solsten Drilling, LLC, to purchase substantially all the assets of the Debtors, pay $190,156 quarterly over 7 years to Washington State Bank on account of its Class 2C Claim in the principal amount of $4,504,177, and pay $818,292 quarterly over 10 years for the benefit of other Creditors according to their priorities. The Asset Purchase Agreement also provides that, regardless of the outcome of the Lien Adversary, Solsten Drilling will issue 3% Preferred Interests in Solsten Drilling on the Effective Date to Holders of Series 2009B Debentures in the amount of one 3% Preferred Interest for each $1 of principal amount of Allowed Class 2B Claim. The Asset Purchase Agreement is expressly subject to higher and better offers by Qualified Bidders. If Solsten Drilling is outbid, or if the Debtors' Plan is confirmed, then, under the proposed Sales Procedures that are subject to approval by the Bankruptcy Court, its $250,000 earnest money deposit will be returned and it will receive a $500,000 break-up fee. First Security notes that the Debtors' Plan that provides no capital infusion into the Debtors in exchange for the issuance of all membership interests in the Reorganized Debtors to an insider, Octane Funding. On the other hand, the Asset Purchase Agreement calls for the parties to the Asset Purchase Agreement to be capitalized with $4.5 million, $3 million of which will be advanced in the form of a capital contribution from SolstenXP to Solsten Funding. Solsten Funding will then itself contribute $1 million to its wholly-owned subsidiary, Solsten Drilling, the operating entity that is buying the Debtors' assets in the Asset Purchase Agreement. The remaining $1.5 million in capitalization to support operations of Solsten Drilling will come from SolstenXP through a working capital credit facility. The distributions to Holders of Allowed Claims and Equity Interests under the Trustee Plan are: A. Unclassified claims (Admin. Claims, Prof. Fees and Cure Costs) will paid in full from operating accounts balances and the arbitration receivable. B. Class 1 (Priority Unsecured Non-Tax Claims) will be paid on the Effective Date. C. Class 2A (Senior Series 2009A Debentures) will paid an amount equal to $25,955,000 (plus accrued interest at 5% per annum) over 10 Years in quarterly installments of $818,292. D. Class 2B (Series 2009B Debentures Secured Claims) will be issued a one 3% preferred interest for each $1 of principal amount of Allowed Class 2B Claims. E. Class 2C (Washington State Bank Secured Claims) will be paid an amount equal to $4,504,177 (plus accrued interest at 5% per annum) over 7 years in quarterly installments of $190,156. F. Class 2D (Octane Funding Claims) will receive their pro rata share of the distributions provided in the plan to holders of allowed Class 3 claims or no distributions as provided in the plan to holders of allowed class 5 subordinated claims. G. Class 2E (Other secured claims) will receive on the Effective Date either the return of its Collateral in full satisfaction of its claim or such other treatment as may be agreed to in writing by such Holder and the Purchaser. H. Class 3 (General Unsecured Claims) will receive pro rata in all cash and other assets held by the Liquidating Trustee that represent Cash Collateral as of the Effective Date. I. Class 4 (Intercompany Unsecured Claims) will not receive any distribution under the Plan. J. Class 5 (Subordinated Claims) will not receive any distribution under the Plan. K. Class 6 (Equity Interests) will not receive any distribution under the Plan. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/OGLEASING_disclosurestatement.pdf The preliminary hearing on the Trustee's disclosure statement and reorganization plan is scheduled on Sept. 20, 2011, at 1:30 p.m. The Indenture Trustee is represent by: Paul H. Stephen, III, Esq. Jim F. Spencer, Jr., Esq. Watkins & Eager PLLC The Emporium Building, 400 East Capitol Street Jackson, Mississippi 39201 Phone: (601) 965-1900 Fax: (601) 965-1901 E-mail: pstephenson@watkinseager.com jspencer@watkinseager.com Stephen W. Rosenblatt, Esq. Christopher R. Maddux, Esq. Butler Snow O'Mara Stevens & Cannada PLLC 1020 Highland Colony Parkway Ridgeland, Mississippi 39157 Phone: (601) 985-4502 Fax: (601) 985-4500 E-mail: steve.rosenblatt@butlersnow.com chris.maddux@butlersnow.com Steve Jakubowski, Esq. The Coleman Law Firm 77 West Wacker Drive, Suite 4800 Chicago, Illinois 60601 Phone: (312) 606-8641 Fax: (312) 444-1028 E-mail: sjakubowski@colemanlawfirm.com About O&G Leasing Jackson, Mississippi-based O&G Leasing, LLC, filed for Chapter 11 bankruptcy protection (Bankr. S.D. Miss. Case No. 10-01851) on May 21, 2010. Douglas C. Noble, Esq., at McCraney Montagnet & Quin, PLLC, assists the Company in its restructuring effort. The Company estimated $10 million to $50 million in assets and $50 million to $100 million in liabilities. O&G LEASING: First Security Proposes SolstenXP-Led Sale Process --------------------------------------------------------------- First Security Bank, as indenture trustee for the bonds used to fund the acquisition and construction of the rigs, asks the U.S. Bankruptcy Court for the Southern District of Mississippi to approve (A) proposed sales procedures in connection with solicitation of offers for sale of substantially all assets of O&G Leasing, LLC, and its affiliates, and (B) payment of a break-up fee of $500,000 to SolstenXP Drilling, LLC, the proposed purchaser. On July 1, 2011, the Debtors filed their chapter 11 Plan of Reorganization and Disclosure Statement. The preliminary hearing on the Debtors' Disclosure Statement presently is set for Aug. 23, 2011. On July 22, 2011, the Indenture Trustee filed a competing chapter 11 Plan of Reorganization for the Debtors, in which the Indenture Trustee sought the sale of substantially all of the Debtors' assets, subject to submission of higher and better bids at an auction. On July 26, 2011, the Indenture Trustee filed its Disclosure Statement. The preliminary hearing on the Disclosure Statement of the Indenture Trustee presently is set for Sept. 20, 2011. The Final Hearing on the Disclosure Statements of the Debtors and the Indenture Trustee is Sept. 28-29, 2011. As proposed under the sales procedures, bids for the Purchased Assets must be at least $250,000 in cash in excess of the amount of the Cash Contribution as provided in the Purchased Agreement, plus the amount of the Break-Up Fee. No later than the Bid Deadline, a Potential Bidder must make a Good Faith Deposit equal to 10% of its bid, to be held in the trust account of the Deposit Agent. All deadlines, auctions, and hearings will be set by Order of the Bankruptcy Court. The Indenture Trustee will request that the Sale Hearing be conducted simultaneously and in conjunction with the Confirmation Hearing on the Chapter 11 Plans filed by the Debtors and the Indenture Trustee. The Indenture Trustee will request that the Auction be set on the business day immediately preceding the date of the Sale Hearing. The Bid Deadline will be set by the Bankruptcy Court, but the Indenture Trustee will request that the Bid Deadline be 7 days before the date of the Sale Hearing. Counsel for the Indenture Trustee may be reached at: Stephen W. Rosenblatt, Esq. Christopher R. Maddux, Esq. BUTLER SNOW O'MARA STEVENS & CANNADA, PLLC 1020 Highland Colony Parkway, Suite 1400 Ridgeland, MS 239157 Tel: (601) 985-4502 Fax: (601) 985-4500 E-mail: steve.rosenblatt@butlersnow.com chris.maddux@butlersnow.com About O&G Leasing Jackson, Mississippi-based O&G Leasing, LLC, was formed in 2006 to acquire and construct land drilling rigs that it would lease to its wholly-owned subsidiary, Performance Drilling Company, LLC. Performance was formed to provide contract drilling services for ArkLaTex (Arkansas, Louisiana and Eastern Texas) region, as well as Alabama, Florida, Mississippi and Oklahoma. The Company filed for Chapter 11 bankruptcy protection (Bankr. S.D. Miss. Case No. 10-01851) on May 21, 2010. Douglas C. Noble, Esq., at McCraney Montagnet & Quin, PLLC, assists the Company in its restructuring effort. The Company estimated $10 million to $50 million in assets and $50 million to $100 million in liabilities. On the same day, Performance Drilling Company, LLC, filed for Chapter 11 bankruptcy protection. Performance Drilling estimated assets and debts of between $1 million to $10 million each. The Debtors' cases have been jointly administered under Case No. 10-01851 OCEAN PLACE: Taps CB Richard as Real Estate Appraiser ----------------------------------------------------- Ocean Place Development LLC asks the U.S. Bankruptcy Court for the District of New Jersey for permission to employ CB Richard Ellis Inc. as real estate appraiser. The firm will provide valuation services to the Debtor, including an appraisal of the Debtor's main hotel property located in Long Branch, New Jersey, together with certain associated development rights. The firm may also provide services in addition to its valuation services, to the extent these additional services are necessary to the Debtor's formulation of a plan of reorganization, or as otherwise required in this chapter 11 case. The firm's compensation will be a $30,000 flat fee for preparing an appraisal report for the resort property. The firm may also charge the following hourly rates for services such as meetings, court preparation, court testimony, travel and related expenses, if those services become necessary in addition to the services related to preparing the appraisal report: MAI Appraiser(court testimony) $500 MAI Appraiser(other than court testimony) $400 Senior Appraiser $350 Junior Appraiser $175 The Debtor assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Ocean Place Development Ocean Place Development, LLC, owns a beachfront resort property in Long Branch, New Jersey. The Ocean Place resort is sited on 17- acres featuring 1,000 feet of ocean frontage and is improved with a 254-room hotel that includes 40,000 square feet of meeting space, three restaurants, a bar/lounge, a full-service spa, and numerous resort amenities. It employs between 95 and 340 employees, depending upon the season, through the property management entity West Paces Hotel Group, LLC. Ocean Place filed a voluntary Chapter 11 petition (Bankr. D. N.J. Case No. 11-14295) on Feb. 15, 2011. Kenneth Rosen, Esq., at Lowenstein Sandler, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $50 million to $100 million. As of the Petition Date, the Debtor owed $57,245,372 to AFP pursuant to a Loan Agreement dated April 25, 2006, as amended from time to time, entered into by and between the Debtor as borrower and Barclays Capital Real Estate Inc. as lender. ONTEORA ASSOCIATES: Loses Bid to Recover Foreclosed Asset --------------------------------------------------------- Bankruptcy Judge Diane Davis denied a motion by Onteora Associates' for summary judgment requesting the return of a property seized by the Village of Fleischmanns. Onteora Associates, v. Village of Fleischmanns, Adv. Proc. No. 09-80076 (Bankr. N.D.N.Y.), seeks to avoid an alleged fraudulent transfer of certain real property to the Village by virtue of a prepetition in rem tax foreclosure proceeding commenced by the Village in the New York State Supreme Court, Delaware County. The Village opposes the Debtor's Summary Judgment Motion on multiple grounds. A copy of Judge Davis' Aug. 11 Letter-Decision and Order is available at http://is.gd/4EkhNQfrom Leagle.com. About Onteora Associates Onteora Associates filed for Chapter 11 petition (Bankr. N.D.N.Y. Case No. 09-63107) on Nov. 4, 2009, as a single-asset real estate debtor under 11 U.S.C. Sec. 101(51B). Richard and Brian Dowd are listed in the Debtor's schedules as joint partners, each holding a 50% partnership interest, in the Debtor. Onteora's real property consists of a movie theater, two stores, and one apartment. Its schedules and Statement of Financial Affairs list a fair market value for the Real Property in the amount of $331,717. The Real Property was encumbered only by a lien of the Delaware National Bank of Delhi for $62,400 and aggregate outstanding taxes due, including those due to the Village, for $31,820. Counsel to Village of Fleischmanns is: Karen Veronica DeFio, Esq. Joseph Zagraniczny, Esq. BOND, SCHOENECK & KING, PLLC One Lincoln Center Syracuse, New York 13202 Tel: (315) 218-8241 Fax: (315) 218-8100 E-Mail: kdefio@bsk.com jzagraniczny@bsk.com Counsel to Onteora Associates is: Richard H. Weiskopf, Esq. O'CONNELL AND ARONOWITZ, PC 54 State Street, 9th Floor Albany, New York 12207 Tel: 518-462-5601 Fax: 518-462-2670 E-mail: rweiskopf@oalaw.com OTTER TAIL: Chapter 11 Plan of Liquidation Confirmed ---------------------------------------------------- BankruptcyData.com reports that the U.S. Bankruptcy Court confirmed Otter Tail Ag Enterprises' Third Amended Chapter 11 Plan of Liquidation. According to the Plan, "each holder of an Allowed Administrative Expense Claim shall receive Cash from the Liquidation Account equal to the lesser of (A) the unpaid portion of such Allowed Administrative Expense Claim, without interest, and (B) such other amount agreed to by such holder on the later of (i) the Effective Date; (ii) the date such Allowed Administrative Expense Claim becomes due and payable under the terms governing the transaction underlying the Allowed Administrative Expense Claim; and (iii) as soon as practicable after the subject Administrative Expense Claim becomes Allowed. Claims for professional fees may be paid consistent with prior orders of the Court, the local rules of the Court, or upon approval by the Court, if required. To the extent there are any unpaid Priority Tax Claims, each holder of a Priority Tax Claim, shall receive payment in full in Cash from the Liquidation Account on the Effective Date, or as soon as practicable after the Priority Tax Claim becomes Allowed." About Otter Tail AG Based in Fergus Falls, Minnesota, Otter Tail AG Enterprises, LLC -- http://www.ottertailethanol.com/-- owned and operated a nameplate capacity 55 million gallon annual production plant of undenatured ethanol in Fergus Falls, Minnesota. The Company processes approximately 20 million bushels of corn into approximately 55 million gallons of ethanol each year. In addition, the Company sells distillers grains, a principal co-product of the ethanol production process. The Company filed for Chapter 11 protection on Oct. 30, 2009 (Bankr. D. Minn. Case No. 09-61250). Attorneys at Mackall, Crounse & Moore, PLC, represent the Debtor in the Chapter 11 case. Carl Marks Advisory Group LLC is the financial advisor. The Debtor disclosed assets of $66.4 million against $86 million in debt, nearly all secured, in its schedules. The largest secured creditor is AgStar Financial Services, owed $40.9 million. OXIGENE INC: Incurs $2.9 Million Net Loss in Second Quarter ----------------------------------------------------------- OXiGENE, Inc., reported a net loss of $2.93 million for the three months ended June 30, 2011, compared with net income of $2.53 million for the same period during the prior year. The Company also reported a net loss of $3.79 million for the six months ended June 30, 2011, compared with a net loss of $8.49 million for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $9.46 million in total assets, $2.23 million in total liabilities and $7.22 million in total stockholders' equity. At June 30, 2011, OXiGENE had cash, cash equivalents and restricted cash of approximately $8.5 million compared with approximately $4.7 million at Dec. 31, 2010. "The presentation of data at ASCO in June was a significant milestone for OXiGENE," said Peter J. Langecker, M.D., Ph.D., OXiGENE's Chief Executive Officer. "The FACT data on overall survival in patients with anaplastic thyroid cancer strongly suggests that ZYBRESTAT may be effective in battling one of the most lethal cancers, and has generated enthusiasm from the oncology community and the key opinion leaders in this field. Our immediate focus now is to obtain sufficient financing to conduct the FACT2 Phase 3 registration trial in ATC, and we are actively pursuing this goal." A full-text copy of the press release announcing the financial results is available for free at http://is.gd/XTLrPa About OXiGENE Inc. South San Francisco, Calif.-based OXiGENE (Nasdaq: OXGN) -- http://www.oxigene.com/-- is a clinical-stage biopharmaceutical company developing novel therapeutics to treat cancer and eye diseases. The Company reported a consolidated net loss of $23.77 million on $0 of license revenue for the year ended Dec. 31, 2010, compared with a consolidated net loss of $28.94 on $0 of license revenue during the prior year. As reported by the Troubled Company Reporter on March 23, 2011, Ernst & Young LLP, after auditing the Company's financial statements for the year ended Dec. 31, 2010, expressed substantial doubt about the Company's ability to continue as a going concern. Ernst & Young noted that the Company has incurred recurring operating losses and will be required to raise additional capital, alternative means of financial support, or both, prior to Jan. 1, 2012 in order to sustain operations. According to Ernst & Young, the ability of the Company to raise additional capital or alternative sources of financing is uncertain. PACESETTER FABRICS: Trustee Wants RHD to Waive Prepetition Claim ---------------------------------------------------------------- The U.S. Trustee for Region 16 filed with the U.S. Bankruptcy Court for the Central District of California its objection to Pacesetter Fabrics, LLC's application to employ Rutter Hobbs & Davidoff Incorporated as general bankruptcy counsel. As reported in the Troubled Company Reporter on July 26, 2011, RHD will advise the Debtor as to its duties under the Bankruptcy Code, and its prosecution claims in the bankruptcy case; assist in connection with its financial affairs; and prepare a plan of reorganization or sale of assets. Brian L. Davidoff, Esq., a shareholder in RHD, told the Court that RHD rendered professional services to the Debtor prior to the filing of the Petition in the total amount of $42,520. Prior to the Petition Date, RHD received $39,843 of the amount, plus an additional retainer of $108,156. RHD agreed to waive $2,677 of the prepetition services rended. The source of the retainer was partially the Debtor's income from operation of business, with respect to $123,000 received. The addtional $25,000 was paid directly by Mixxed 26, LLC to RHD. Mixxed 26 is a customer of the Debtor, who had borrowed funds from the Debtor, and the $25,000 represented a partial repayment of the loan owed by Mixxed 26 to the Debtor. The U.S. Trustee objects to RHD's request to be paid on a monthly basis in accordance with Knudsen procedures and requests that any order approving the employment specifically state that RHD will waive all prepetition claims against the Debtor. RHD seeks payment on a monthly basis for its fees and costs in accordance with a procedure similar to the one allowed in re Knudsen Corp. However, the procedure described in Knudsen must only be allowed in extraordinary circumstances and RHD failed to meet is burden that it is entitled to payments in accordance with Knudsen procedure. About Pacesetter Fabrics Based in City of Commerce, California, Pacesetter Fabrics, LLC, dba Pacesetter Off Price and Pacesetter Garments, is a distributor of quality textile and garment fabrics in the United States and international markets. The Company has been in business for over 14 years. The Company is owned 98% by Net, LLC, a California limited liability company, 1% by Leora Namvar (Ramin Namvar's wife), and 1% by Massoud Poursalimi (Leora Namvar and David Poursalimi's father). Net LLC is in turn owned 99% by Ramin Namvar and 1% Leora Namvar. Pacesetter Fabrics filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-36330) on June 17, 2011, estimating assets and debts of $10 million to $50 million. Judge Ernest M. Robles presides over the case. The Debtor is represented by Brian L. Davidoff, Esq., C. John M. Melissinos, Esq., and Claire E. Shin, Esq., at Rutter Hobbs & Davidoff Incorporated. Brian Wygle -- Brian@lazarusresources.com -- president of Lazarus Resources Group, LLC, a corporate turnaround consultant, assists Pacesetter with its turnaround and reorganization efforts and the financial affairs and management of the Company. PACIFIC ENERGY: Miller Overvalued Alaskan Assets, Investor Says --------------------------------------------------------------- Ian Thoms at Bankruptcy Law360 reports that a Miller Energy Resources Inc. shareholder on Friday lodged a proposed class action accusing the Tennessee-based oil and natural gas company of overvaluing the Alaskan assets it purchased for $2.25 million during a rival company's Chapter 11 proceeding. Shareholder Ruben Husu alleges Miller Energy misled investors into believing the production facilities and energy reserves it bought from Pacific Energy Resources Ltd. in December 2009 were worth $325 million, when, in fact, they were worth less than $30 million and came with some $40 million in liabilities, Law360 relates. About Pacific Energy Headquartered in Long Beach, California, Pacific Energy Resources Ltd. -- http://www.pacenergy.com/-- engaged in the acquisition and development of oil and gas properties, primarily in the United States. The Company and seven of its affiliates filed for Chapter 11 protection on March 8, 2009 (Bankr. D. Del. Lead Case No. 09-10785). The Debtor estimated between $100 million and $500 million in assets and debts in its Chapter 11 petition. Attorneys at Pachulski Stang Ziehl & Jones LLP, serve as bankruptcy counsel to the Debtors. The Debtors also tapped Rutan & Tucker LLP as special corporation and litigation counsel; Schully, Roberts, Slattery & Marino, PLC, as special oil and gas and transactional counsel; Devlin Jensen as special Canadian counsel; Scott W. Winn, at Zolfo Cooper Management, LLC, as chief restructuring officer; Lazard Freres & Co. LLC as investment banker; and Albrecht & Associates, Inc., as agent for the Debtors in the sale of their oil and gas properties. Omni Management Group, LLC, is the claims, balloting, notice and administrative agent for the Debtors. PADULA MASONRY: Case Summary & 19 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Padula Masonry, Inc. P.O. Box 750 Ocean City, NJ 08226 Bankruptcy Case No.: 11-34038 Chapter 11 Petition Date: August 12, 2011 Court: U.S. Bankruptcy Court District of New Jersey (Camden) Judge: Judith H. Wizmur Debtor's Counsel: David A. Kasen, Esq. KASEN & KASEN 1874 East Route 70, Suite 3 Cherry Hill, NJ 08003 Tel: (856) 424-4144 E-mail: dkasen@kasenlaw.com Scheduled Assets: $54,580 Scheduled Debts: $1,688,091 A list of the Company's 19 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/njb11-34038.pdf The petition was signed by Ronald M. Padula, president. PALM HARBOR: Disclosure Statement Hearing Set for Sept. 13 ---------------------------------------------------------- Palm Harbor Homes, Inc., its five co-debtors, and the Official Committee of Unsecured Creditors ask the U.S. Bankruptcy Court for the District of Delaware to approve the disclosure statement to their proposed Joint Plan of Liquidation, dated Aug 5, 2011. The primary purpose of the Plan is to provide for the orderly liquidation of the Debtors and the distribution of the proceeds of the sale of substantially all of their assets to the Purchaser that closed in April 2011 as well as any other applicable assets of the Debtors to certain Holders of Allowed Claims. Because substantially all of the Debtors' assets were sold as part of the Sale Transaction to the Purchaser, the Plan provides for the formation of a Post-Consummation Trust that will administer the Post-Consummation Trust Assets in accordance with the Plan. Summary of Expected Recoveries Projected Class Recovery Treatment ----- --------- --------- 1 100% Payment in full in Cash. Other Priority Claims 2 100% Each Holder of an Allowed Other Secured Claims Class 2 Claim will receive (i) the collateral securing the Allowed Other Secured Claim or (ii) Cash in an amount equal to the value of the collateral. 3 16.7 - 21% Pro rata share of available 3.25% Convertible Cash or other consideration. Senior Notes Claims Upon the Effective Date, the 3.25% Convertible Senior Notes Claim will be an Allowed Claim in the amount of $54,783,174. Any claims filed by beneficiaries of the 3.25% Convertible Senior Notes Indenture other than the 3.25% Convertible Senior Notes Indenture Trustee will be deemed superseded or amended by the 3.25% Convertible Senior Notes Claim. 4 16.7 - 21% Pro rata share of available General Unsecured Cash or other consideration. Claims 5 0% Extinguished under the Plan. Intercompany Claims 6 0% No distribution. Equity Interests The Debtors' liquidation analysis shows that recovery under Chapter 11 liquidation is higher compared to recovery under Chapter 7. Full-text copies of the Plan, Disclosure Statement, and related documents are available at no charge at: http://bankrupt.com/misc/PalmHarborTCR_PlanDSLiqAn080511.pdf http://bankrupt.com/misc/PalmHarborTCR_BallotsNotices080511.pdf The Debtors' counsel, Christopher A. Ward, Esq., at Polsinelli Shuhart PC, in Wilmington, Delaware, asserts that the Disclosure Statement contains the pertinent information necessary for Holders of Claims to make an informed decision about whether to vote to accept or reject the Plan. The Plan Proponents submit that the Disclosure Statement "contains more than sufficient information" for a hypothetical reasonable investor to make an informed judgment about the Plan and that it complies with all aspects of Section 1125 of the Bankruptcy Code. The Plan Proponents also ask the Court to establish Sept. 13, 2011, as the voting record date for determining (i) the Holders of Claims that are entitled to receive the solicitation package in accordance with the solicitation procedures; (ii) the Holders of Claims that are entitled to vote to accept the Plan; (iii) whether Claims have been property assigned or transferred to an assignee pursuant to Bankruptcy Rule 3001(e); and (iv) the identity of the Holders of Equity Interests for noticing purposes. The Plan Proponents further ask the Court to set: (a) Oct. 12, 2011, at 4:00 p.m., prevailing Eastern Time, as the voting deadline for all Holders of Claims in the Voting Classes to vote on the Plan as specified in the Solicitation Procedures; (b) Oct. 14, 2011, as the deadline for filing the voting results of the Plan. BMC Group, Inc. is employed as the Debtors' voting and claims agent; (c) Oct. 19, 2011, as the deadline for Entities to file objections to the confirmation of the Plan; (d) Oct. 26, 2011, as the deadline for any party supporting the Plan to file a response to any objection to confirmation of the Plan; and (e) Nov. 1, 2011, as the date for a hearing on confirmation of the Plan. The Debtors intend to distribute Solicitation Packages to all Holders of Claims entitled to vote on the Plan, by Sept. 21, 2011. A hearing to approve the Disclosure Statement is set for Sept. 13, 2011, at 1:00 p.m., prevailing Eastern Time. In a separate filing, the Honorable Christopher S. Sontchi approved the application of Palm Harbor Homes, Inc., et al., to employ Bifferato Gentilotti LLC as their special conflicts counsel, nunc pro tunc to Apr. 1 2011. About Palm Harbor Homes Addison, Texas-based Palm Harbor Homes, Inc. -- http://www.palmharbor.com/-- manufactured and marketed factory- built homes. The Company marketed nationwide through vertically integrated operations, encompassing manufactured and modular housing, financing and insurance. Palm Harbor, along with affiliates, filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 10-13850) on Nov. 29, 2010. It disclosed $321,263,000 in total assets and $280,343,000 in total debts. Brian Cejka at Alvarez & Marsal is the Debtors' chief restructuring officer. Raymond James and Associates, Inc., is the Debtors' investment banker. Alvarez & Marshal North America, LLC, is the Debtors' financial advisor. BMC Group, Inc., is the Debtors' claims agent. Pachulski Stang Ziehl & Jones LLP serves as counsel to the Official Committee of Unsecured Creditors. Following a court-approved sale process, Palm Harbor in March 2011 sold its business for $85.25 million to Fleetwood Enterprises Inc., a venture between Cavco Industries Inc. and a fund advised by Third Avenue Management LLC. Fleetwood is providing up to $55 million in secured financing for Palm Harbor's reorganization. As reported in the TCR on May 16, 2011, Cavco Industries and Fleetwood Homes filed with the Bankruptcy Court a motion for an order enforcing and ordering Palm Harbor Homes to perform its obligations under the Court-approved amended and restated asset purchase agreement and to pay administrative expenses. According to Cavco and Fleetwood, the Debtors ceased paying former employees' sales commissions and profit-sharing bonuses prior to the closing date when the individuals were still employees of the Debtors. PARAMOUNT LIMITED: Has Until Aug. 26 to File Financial Statements ----------------------------------------------------------------- Judge Thomas J. Tucker approved the stipulation among Paramount Limited, LLC, et al., and the Office of the U.S. Trustee to extend until Aug. 26, 2011, the deadline for the Debtor to file Schedules and Statements of Financial Affairs. About Paramount Limited Paramount Limited LLC was an investor in distressed real estate. Paramount Limited and three other affiliates sought Chapter 11 bankruptcy protection (Bankr. E.D. Mich. Lead Case No. 11-59829) on July 21, 2011, after a state court appointed McTevia & Associates as receiver to take over. The receiver was appointed at the behest of the Police and Fire Retirement System of the city of Detroit, one of Paramount's unsecured creditors, with $13.2 million owed. The Retirement System said Paramount was "a classic Ponzi scheme." Judge Thomas J. Tucker presides over the case. Gene R. Kohut of Kohut Management Group, LLC, has been tapped to serve as their Chief Restructuring Officer. Stephen M. Gross, Esq., and Jayson Russ, Esq., at McDonald Hopkins Plc, serve as bankruptcy counsel. Paramount Limited estimated assets of more than $10 million and debt of less than $10 million. The petition was signed by Abner McWhorter, Paramount's managing member. Affiliates that simultaneously sought Chapter 11 protection are Paramount Land Holdings, LLC; Paramount Servicing, LLC; and Paramount Land Holdings, LLC. The receiver is represented by: Mark S. Frankel, Esq. Jerry M. Ellis, Esq. COUZENS LANSKY FEALK ELLIS ROEDER & LAZAR P.C. 39395 W. Twelve Mile Road, Suite 200 Farmington Hills, MI 48331 Tel: 248-489-8600 E-mail: mfrankel@couzens.com jerry.ellis@couzens.com The Police and Fire Retirement System is represented by: Marie T. Racine, Esq. Jennifer A. Cupples, Esq. RACINE & ASSOCIATES 1001 Woodward Avenue, Suite 1100 Detroit, MI 48226 Tel: 313-961-8930 Fax: 313-961-8945 E-mail: mracine@racinelaw.us jcupples@racinelaw.us PECAN SQUARE: Hires The Law Office of Illyssa I. Fogel as Counsel ----------------------------------------------------------------- Pecan Square, Ltd. sought and obtained authority from the U.S. Bankruptcy Court for the Southern District of California to employ The Law Office of Illyssa I. Fogel as its bankruptcy counsel. As Counsel, the Firm will render these services: * Give the Debtor legal advice with respect to its rights, powers, obligations, and duties as debtor; * Represent the Debtor in adversary proceedings and other ancillary matters as may be directly related to the case; * Advise the Debtor concerning the requirements of the Bankruptcy Code and Rules relating to the operation of the business of the estate; and * Advise the Debtor concerning the various post-confirmation matters. The Debtor may, from time to time, request the Firm to undertake specific matters beyond the limited scope of the responsibilities enumerated. The Firm was given a $25,000 retainer. It withdrew $8,284 from its trust account to cover pre-filing fees and expenses. The Firm's current hourly rates are: Illyssa I. Fogel, attorney $350 Legal assistant $175 The Firm will also be reimbursed for actual out-of-pocket expenses. The Debtor believes that the Firm is a disinterested party within the meaning of the Bankruptcy Code, which does not hold or represent an interest adverse to the estate in the matters in which it is to be engaged. Dallas, Texas-based Pecan Square, Ltd., a California Limited Partnership, filed for Chapter 11 bankruptcy protection (Bankr. S.D. Calif. Case No. 11-05359) on March 31, 2011. Illyssa I. Fogel, Esq., at the Law Office of Illyssa I. Fogel, serves as the Debtor's bankruptcy counsel. In its schedules, the Debtor disclosed $35,215 in assets and $9,484,877 in liabilities. PETTERS COMPANY: Chapter 11 Trustee Taps Cooperstein and Haynes -------------------------------------------------------------- Douglas A. Kelley, Chapter 11 Trustee Petters Company, Inc., et al., seeks to employ (i) the Law Office of Eric T. Cooperstein, PLLC, as his counsel, effective March 18, 2011, and (ii) Haynes and Boone, LLP, as his special counsel, effective October 1, 2010. Mr. Kelley wishes to retain Cooperstein to provide an ethics opinion and possible expert testimony regarding the Bankruptcy Estates' potential claims against professional service firms and, potentially, certain of the firms' partners or shareholders. Cooperstein will be paid an hourly rate of $300 and will be reimbursed of actual, necessary expenses. As Special Counsel, Haynes and Boone will advise and represent the Chapter 11 Trustee with respect to the maintenance of intellectual property assets of Springworks, LLC, a wholly owned subsidiary of Debtor Petters Group Worldwide, LLC. The current hourly rate of Gary Edwards, the Haynes and Boone attorney who will be representing the Debtors, is discounted from $560 to $500. Haynes and Boone will also be reimbursed of actual, necessary expenses. Haynes and Boones has disclosed certain past and future relationships that do not constitute conflicts. The Firm agrees not to represent any other entity in connection with these Chapter 11 cases while employed by the Chapter 11 Trustee. The Chapter 11 Trustee believes that Cooperstein and Haynes and Boone do not hold or represent any material interest adverse to the Debtors or their estates. About Petters Group Based in Minnetonka, Minn., Petters Group Worldwide LLC is a collection of some 20 companies, most of which make and market consumer products. It also works with existing brands through licensing agreements to further extend those brands into new product lines and markets. Holdings include Fingerhut (consumer products via its catalog and Web site), SoniqCast (maker of portable, WiFi MP3 devices), leading instant film and camera company Polaroid (purchased for $426 million in 2005), Sun Country Airlines (acquired in 2006), and Enable Holdings (online marketplace and auction for consumers and manufacturers' overstock inventory). Founder and chairman Tom Petters formed the company in 1988. Petters Company, Inc., is the financing and capital-raising unit of Petters Group Worldwide. Thomas Petters, the founder and former CEO of Petters Group, has been indicted and a criminal proceeding against him is proceeding in the U.S. District Court for the District of Minnesota. Petters Company, Petters Group Worldwide and eight other affiliates filed separate petitions for Chapter 11 protection (Bankr. D. Minn. Lead Case No. 08-45257) on Oct. 11, 2008. In its petition, Petters Company estimated its debts at $500 million and $1 billion. Parent Petters Group Worldwide estimated its debts at not more than $50,000. Fruth, Jamison & Elsass, PLLC, represents Douglas Kelley, the duly appointed Chapter 11 Trustee of Petters Company, Inc., et al. Petters Aviation, LLC, and affiliates MN Airlines, LLC, doing business as Sun Country Airlines, Inc., and MN Airline Holdings, Inc., filed separate petitions for Chapter 11 bankruptcy protection (Bankr. D. Minn. Case Nos. 08-45136, 08-35197 and 08-35198) on Oct. 6, 2008. Petters Aviation is a wholly owned unit of Thomas Petters Inc. and owner of MN Airline Holdings, Sun Country's parent company. PHARMOS CORP: Posts $500,400 Net Loss in 2nd Quarter ---------------------------------------------------- Pharmos Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $500,433 for the three months ended June 30, 2011, compared with a net loss of $431,979 for the same period of 2010. Pharmos generated zero revenue for both periods. The Company reported a net loss of $1.10 million for the six months ended June 30, 2011, compared with a net loss of $923,357 for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $2.19 million in total assets, $1.14 million in total liabilities, and stockholders' equity of $1.05 million. As reported in the TCR of Feb. 24, 2011, Friedman LLP, in East Hanover, N.J., expressed substantial doubt about Pharmos' ability to continue as going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered recurring losses from operations, has an accumulated deficit and expects to continue to incur losses going forward. A copy of the Form 10-Q is available at http://is.gd/BIFoay About Pharmos Corporation Iselin, New Jersey-based Pharmos Corporation is a biopharmaceutical company that discovers and develops novel therapeutics to treat a range of diseases of the nervous system, including disorders of the brain-gut axis (e.g., Irritable Bowel Syndrome), with a focus on pain/inflammation, and autoimmune disorders. The Company's most advanced product is Dextofisopam for the treatment of irritable bowel syndrome (IBS). PHILADELPHIA ORCHESTRA: Taps Luken & Wolf as Real Estate Appraiser ------------------------------------------------------------------ The Philadelphia Orchestra and Academy of Music of Philadelphia, Inc., ask the U.S. Bankruptcy Court for the Eastern District of Pennsylvania for authorization to employ Lukens & Wolf LLC as the Debtors' real estate appraiser and consultant. The Debtors tell the Court they require the services of Lukens to value the Academy of Music building, located at Broad and Locust Streets, Philadelphia, and certain commercial space located at 1420 Locust Street, Philadelphia (collectively, the "Academy Property"). Lukens will also consider and evaluate the leases and restrictions on the Academy Property to determine the impact such leases and restrictions have on the value of the property. The hourly rates of those employed by Lukens who may perform work for the Debtors are: Reaves C. Lukens, Jr. $395/hour Reaves C. Lukens, III $275/hour Richard F. Wolf $275/hour Other Licensed Appraisers $125/hour Researcher/Appraiser Assistant $100/hour Reaves C. Lukens, Jr., a principal in Lukens & Wolf, assures the Court that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code, as modified by Section 1107(b), and that the firm does not hold or represent an interest adverse to the Debtors' estates. About the Philadelphia Orchestra The Philadelphia Orchestra -- http://www.philorch.org/-- claims to be among the world's leading orchestras. Bloomberg News says the orchestra became the first major U.S. symphony to file for bankruptcy protection, surprising the music world. Previous conductors include Fritz Scheel (1900-07), Carl Pohlig (1907-12), Leopold Stokowski (1912-41), Eugene Ormandy (1936-80), Riccardo Muti (1980-92), Wolfgang Sawallisch (1993-2003), and Christoph Eschenbach (2003-08). Charles Dutoit is currently chief conductor, and Yannick Nezet-Seguin has assumed the title of music director designate until he takes up the baton as The Philadelphia Orchestra's next music director in 2012. The Philadelphia Orchestra Association, The Academy of Music of Philadelphia, Inc., and Encore Series, Inc., filed separate Chapter 11 petitions (Bankr. E.D. Pa. Case Nos. 11-13098 to 11-13100) on April 16, 2011. Judge Eric L. Frank presides over the case. The Philadelphia Orchestra Association is being advised by Dilworth Paxson LLP, its legal counsel, and Alvarez & Marsal, its financial advisor. Curley, Hessinger & Johnsrud serves as its special counsel. In its petition, Philadelphia Orchestra estimated $10 million to $50 million in assets and debts. Encore Series, Inc., tapped EisnerAmper LLP as accountants and financial advisors. Roberta A. DeAngelis, the U.S. Trustee for Region 3, appointed seven members to the official committee of unsecured creditors in the Debtors' case. Reed Smith LLP serves as the Committee's counsel. The orchestra at the start of the Chapter 11 case said it needed relief from pension obligations, a new lease with the Kimmel Center where it performs, and a new union contract with musicians. PHYSICAL PROPERTY: Incurs HK$119,000 Net Loss in Second Quarter --------------------------------------------------------------- Physical Property Holdings Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss and total comprehensive loss of HK$119,000 on HK$208,000 of total operating revenues for the three months ended June 30, 2011, compared with a net loss and total comprehensive loss of HK$138,000 on HK$164,000 of total operating revenues for the same period during the prior year. The Company also reported a net loss and total comprehensive loss of HK$271,000 on HK$401,000 of total operating revenues for the six months ended June 30, 2011, compared with a net loss and total comprehensive loss of HK$279,000 on HK$348,000 of total operating revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed HK$10.51 million in total assets, $HK11.27 million in total liabilities, all current, and a HK$764,000 total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/DtmKDR About Physical Property Physical Property Holdings Inc. (formerly known as Physical Spa & Fitness Inc.), through its wholly-owned subsidiary Good Partner Limited, owns five residential apartments located in Hong Kong. The Company was incorporated on Sept. 21, 1988, under the laws of the United States of America. The Company reported a net loss and total comprehensive loss of HK$640,000 on HK$765,000 of rental income for the year ended Dec. 31, 2010, compared with a net loss and total comprehensive loss of HK$899,000 on HK$602,000 of rental income during the prior year. As reported by the TCR on April 7, 2011, Mazars CPA Limited, in Hongkong, expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's 2010 financial results. The independent auditors noted that the Company had a negative working capital as of Dec. 31, 2010 and incurred loss for the year then ended. PIEDMONT CENTER: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Piedmont Center Investments, LLC P.O. Box 6449 Raleigh, NC 27628 Bankruptcy Case No.: 11-06178 Chapter 11 Petition Date: August 11, 2011 Court: United States Bankruptcy Court Eastern District of North Carolina (Wilson) Judge: Stephani W. Humrickhouse Debtor's Counsel: Trawick H. Stubbs, Jr., Esq. STUBBS & PERDUE, P.A. P.O. Drawer 1654 New Bern, NC 28563 Tel: (252) 633-2700 Fax: (252) 633-9600 E-mail: efile@stubbsperdue.com Scheduled Assets: $27,211,171 Scheduled Debts: 15,461,599 The petition was signed by Roger V. Camp, manager. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Capital Bank guaranty claim of $1,881,039 Attn: Bank Officer FEC Partners, LLC PO Box 71083 Charlotte, NC 28272-1083 QubicaAMF Worldwide LLC $50,000 Attn: Manager or Agent LBX 759005 Baltimore, MD 21275-9005 Person County Tax Coll. 2011 property taxes $26,872 Attn: Manager or Agent PO Box 1701 Roxboro, NC 27573 Alamance County Tax 2011 property taxes $23,719 Collector Chatham County Tax 2011 property taxes $22,003 Ovvice Rella Cowan, Inc. $21,000 Town of Nashville 2011 property taxes $13,436 Tax Coll. City of Mebane $11,976 Guilford County Tax 2011 property taxes $11,995 Dept. Hertford County Tax 2011 property taxes $10,197 Coll. First Citizen Bank credit card $9,547 Town of Gibsonville 2011 property taxes $7,167 City of Graham Tax 2011 property taxes $7,102 Coll. Integrated Design $6,235 Toshiba Business $5,677 Solutions Duke Energy $4,984 Bonita Marie Int'l $4,934 First Citizens Bank credit card $4,097 Krugell, Lawton & $2.860 Company First Citizens Bank credit card $2,684 POWER EFFICIENCY: John Lackland Resigns from All Positions ---------------------------------------------------------- John (BJ) Lackland notified the board of directors of Power Efficiency Corporation that he will be resigning from the positions of Chief Financial Officer, Secretary and Director effective Aug. 15, 2011. Mr. Lackland's resignation is not as a result of any disagreement with the Company's operations, policies or practices. On Aug. 5, 2011, Brian Chan was promoted to the position of Vice President of Finance and Accounting. Mr. Chan will continue to be the Treasurer of the Company, a position which he has held since 2005. Upon Mr. Lackland's resignation, Mr. Chan will serve as the principal accounting officer and he will assume all of the duties previously performed by Mr. Lackland. Before joining the Company, from 2003-2005 Mr. Chan was an accountant at Johnson Jacobson Wilcox, a Las Vegas accounting firm specializing in privately held construction and real estate companies. Mr. Chan is a licensed Certified Public Accountant in California (inactive), and has a Bachelor of Arts in Business Economics with an emphasis in Accounting from University of California Santa Barbara. On Aug. 5, 2011, the Company promoted Rick Sander to the position of Chief Operating Officer. Prior to joining Power Efficiency, from 1997 to 2011, Mr. Sander was the President & Chief Executive Officer of ISE Corporation, a developer of a hybrid/EV drive system for commercial vehicles. Prior to ISE, Mr. Sander was the Vice President of Worldwide Operations and Supply Chain Management for Smart Modular Technologies, a $1 billion producer of memory and embedded computing. Mr. Sander earned his M.B.A. from San Diego State University and a B.S. in Industrial Manufacturing Engineering from Oregon State University. About Power Efficiency Las Vegas, Nevada-based Power Efficiency Corporation (OTC: PEFF) - - http://www.powerefficiency.com/-- is a clean technology company focused on efficiency technologies for electric motors. The Company's balance sheet at March 31, 2011, showed $4.3 million in total assets, $1.2 million in total liabilities, and stockholders' equity of $3.1 million. As reported in the TCR on April 6, 2011, BDO USA, LLP, in Las Vegas, Nevada, expressed substantial doubt about Power Efficiency's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered recurring losses and has generated negative cash flows from operations. PROFESSIONAL VETERINARY: Seeks to Avoid Transfers to DVM -------------------------------------------------------- Professional Veterinary Products, Ltd. filed a complaint against Direct Vet Marketing, Inc., seeking judgment from the U.S. Bankruptcy Court for the District of Nebraska: * Determining whether DVM gave reasonably equivalent value for the transfers of the assets and services under certain purchase agreements, and if not, avoiding the transfers of those assets and services under the Purchase Agreements as fraudulent conveyances pursuant to Section 548(a)(1)(B) of the Bankruptcy Code; * Awarding judgment in favor of the Debtor and against DVM pursuant to Section 550 of the Bankruptcy Code in an amount equal to the value of the transfers that are determined by the Court to be fraudulent conveyances and avoidable; * Disallowing any claim in favor of DVM until payment of any damages so awarded until Sections 548 and 550; * Alternatively awarding judgment against DVM and in favor of the Debtor pursuant to Nebraska's Uniform Fraudulent Transfer Act and granting the relief allowed thereunder; and * For interest, costs and attorney's fees to the extent allowed by law. James G. Powers, Esq., at McGrath North Mullin & Kratz, PC LLO, in Omaha, Nebraska, relates that the Debtor's claims against DVM arise out of the Defendant's purchase of one of the Debtor's business segments -- Vet's First Choice -- on June 11, 2010. The purchase occurred shortly before the Debtor's bankruptcy filing and at a time when it was insolvent, he says. As part of the purchase, DVM required the Debtor to enter into a Master Service Agreement to essentially run the VFC Business for the Defendant for consideration "much less than the value of those assets and services," Mr. Powers tells the Court. Notwithstanding the amount DVM paid for VPC, the Defendant has now filed and is pursuing a claim -- Claim No. 509 -- in the Debtor's bankruptcy case in excess of $17,500,000, which amount DVM asserts equals the value it will have had to expend to duplicate the assets and services it acquired from the Debtor under the Purchase Agreements. If the value of what DVM purchased from the Debtor under the Purchase Agreements is comparable to the amount of the claim filed by the Defendant, the Debtor is entitled to recover the value of that transfer as a constructively fraudulent conveyance under Sections 548 and 550 as well as under Nebraska's Uniform Fraudulent Transfer Act, Mr. Powers asserts. The Debtor is currently prosecuting its objections to the DVM Claim as a contested matter. Give the similarity of issues between the Objection and this complaint, the Debtor requests that this adversary proceeding be consolidated with the Objection Proceeding through trial. About Professional Veterinary Products Professional Veterinary Products Ltd. -- http://www.pvpl.com/-- operates a veterinary supply company owned and managed by veterinarians. Professional Veterinary sought Chapter 11 protection from creditors on Aug. 20, 2010, in Omaha, Nebraska (Bankr. D. Neb. Case No. 10-82436). Affiliates ProConn and Exact Logistics also filed for Chapter 11. The Company reported $89.79 million in total assets, $78.23 million in total liabilities, and $11.56 million in stockholders' equity at April 30, 2010. The Company hired McGrath North Mullin & Kratz PC LLC, as bankruptcy counsel and Alliance Management as financial and restructuring advisors. PUBLIC MEDIA: Hires Salzwedel for Investor Relations Services ------------------------------------------------------------- Public Media Works, Inc., entered into an Independent Contractor Agreement, on Aug. 1, 2011, with Salzwedel Financial Communications, Inc., for the provision of investor relations services for the Company. The Investor Relations Agreement is for a term of six months, and provides for the Company's issuance of 600,000 shares of restricted common stock, 600,000 warrants to purchase shares of restricted common stock at $.10 per share and $10,000 per month in compensation for the term. The remaining terms are substantially the same as the terms of the previous investor relations agreement which expired on Aug 1, 2011. A full-text copy of the Independent Consulting Agreement is available for free at http://is.gd/9acFLC During the period commencing June 5, 2011, through the period ending July 29, 2011, the Company agreed to sell 1,270,000 shares of restricted Company common stock at $.10 per share to 4 accredited investors, which resulted in gross proceeds of $127,000 to the Company. On July 29, 2011, the Company issued 200,000 shares of Company common stock to Signifi Solutions, Inc., in consideration for the payment of 15% of the purchase price for kiosks purchased by the Company from Signifi. The shares of Company common stock were valued at $.50 per share as provided by the terms of the Company's previously announced agreement with Signifi. On July 29, 2011, the Company issued 128,571 shares of Company common stock to an accredited investor in connection with the exercise of options issued by the Company in November 2007. The options were exercised through a cashless exercise and the Company did not receive any proceeds from the issuance of shares. On July 29, 2011, the Company issued 2,122,750 shares of restricted Company common stock to 3 accredited investors pursuant to the Company's previous contractual obligations to the investors to issue each of them additional shares in the event the Company sold shares for less than the $.25 price per shares paid by such investors. The Company did not receive any additional proceeds from the issuance of the shares. On Aug. 1, 2011, the Company agreed to issue 600,000 shares of Company common stock, and warrants to purchase 600,000 shares of Company common stock, to Salzwedel Financial Communications, Inc., in connection with the Investor Relations Agreement. As of Aug. 3, 2011, the Company has 38,903,115 shares of common stock outstanding. About Public Media Works Sausalito, Calif.-based Public Media Works, Inc., and its wholly- owned subsidiary, EntertainmentXpress, Inc., a California corporation , are engaged in the business of offering self-service kiosks which deliver DVD movies to consumers. Public Media Works, Inc., has historically been engaged in the development, production, marketing and distribution of film, music and television entertainment titles. The Company has an ownership interest in several film and television projects, but expects no revenue from these projects. As of May 4, 2010 with the acquisition of Entertainment Xpress, Inc., the Company has focused exclusively on its kiosk business and intends to continue this focus going forward. In March 2011, the Company installed its first 25 kiosks under the DBA of "Spot. The difference(TM)". Anton & Chia, LLP, in Newport Beach, California, expressed substantial doubt about Pubic Media Works' ability to continue as a going concern. The independent auditors noted that the Company has incurred significant recurring net losses and negative cash flows from operations through Feb. 28, 2011, and it has an accumulated deficit of $12.83 million as of Feb. 28, 2011. The Company reported a net loss of $7.68 million on $7,139 of revenue for the fiscal year ended Feb. 28, 2011, compared with a net loss of $108,435 on $50,000 of revenue for the fiscal year ended Feb. 28, 2010. The Company's balance sheet at May 31, 2011, showed $862,106 in total assets, $1.17 million in total liabilities and a $307,366 in total stockholders' deficit. QUANTUM CORP: FMR LLC Discloses 10.07% Equity Stake --------------------------------------------------- In an amended Schedule 13G filing with the U.S. Securities and Exchange Commission, FMR LLC and Edward C. Johnson 3d disclosed that they beneficially own 23,190,600 shares of common stock of Quantum Corporation representing 10.077% of the shares outstanding. As of the close of business on Aug. 2, 2011, 231.9 million shares of the Company's common stock were issued and outstanding. A full-text copy of the filing is available for free at http://is.gd/IlrPpk About Quantum Corp. Based in San Jose, California, Quantum Corp. (NYSE:QTM) -- http://www.quantum.com/-- is a storage company specializing in backup, recovery and archive. Quantum provides a comprehensive, integrated range of disk, tape, and software solutions supported by a world-class sales and service organization. The Company's balance sheet at June 30, 2011, showed $414.89 million in total assets, $472.34 million in total liabilities, and a $57.45 million stockholders' deficit. * * * In January 2011, Moody's Investors Service upgraded Quantum Corporation's Corporate Family and Probability of Default ratings to B2 from B3 and revised the ratings on the senior secured debt obligations to Ba3 from B1. The rating outlook is positive. The upgrade of the CFR to B2 reflects Quantum's improved operating performance, which stems from strong customer adoption and growth of its higher margin branded disk-based systems and software products, which Moody's expects to continue in FY12. In March 2011, Standard & Poor's Ratings Services raised its corporate credit rating on storage manufacturer Quantum Corp. to 'B' from 'B-'. The outlook is stable. "The upgrade reflects that the company has posted four sequential quarters of sustained EBITDA generation, despite ongoing declines in its core tape business and the absence of an EMC licensing arrangement," said Standard & Poor's credit analyst Lucy Patricola. In addition, debt/EBITDA has been stable for the last four quarters at about 4x and reduced from 2009 levels, primarily reflecting application of free cash flow to debt reduction. QUEPASA CORP: Incurs $2.3 Million Net Loss in Second Quarter ------------------------------------------------------------ Quepasa Corporation reported a net loss of $2.30 million on $1.84 million of revenue for the three months ended June 30, 2011, compared with a net loss of $1.88 million on $1.15 million of revenue for the same period during the prior year. The Company also reported a net loss of $3.79 million on $4.08 million of revenue for the six months ended June 30, 2011, compared with a net loss of $4.54 million on $1.47 million of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $20.64 million in total assets, $8.03 million in total liabilities and $12.61 million total stockholders' equity. A full-text copy of the press release announcing the financial results is available for free at http://is.gd/9x2tbJ About Quepasa Corporation West Palm Beach, Fla.-based Quepasa Corporation (OTC BB: QPSA) through its Web site -- http://www.Quepasa.com/-- operates as an online social community for young Hispanics. Quepasa reported a consolidated net loss of $6.65 million on $6.05 million of revenue for the fiscal year ended Dec. 31, 2010, compared with a net loss of $10.58 million on $536,000 of revenue during the prior year. Salberg & Company, P.A., in Boca Raton, Florida, independent report following the 2010 results did not contain a going concern qualification for Quepasa Corp. As reported in the Troubled Company Reporter on March 9, 2010, Salberg & Company, P.A. expressed substantial doubt about the Company's ability to continue as a going concern following the 2009 results. The independent auditors noted of the Company's net loss and net cash used in operating activities in 2009 of $10.58 million and $3.88 million, respectively, and a stockholders' deficit and an accumulated deficit of $3.90 million and $159.33 million, respectively, at Dec. 31, 2009. RADIO ONE: Reports $101.2 Million Net Income in Second Quarter -------------------------------------------------------------- Radio One, Inc., reported consolidated net income of $101.26 million on $97.06 million of net revenue for the three months ended June 30, 2011, compared with consolidated net income of $2.49 million on $75.14 million of net revenue for the same period a year ago. The Company also reported consolidated net income of $37.22 million on $162.07 million of net revenue for the six months ended June 30, 2011, compared with a consolidated net loss of $2.10 million on $134.12 million of net revenues for the same period during the prior year. The Company's selected balance sheet data at June 30, 2011, showed $1.52 billion in total assets, $1.06 billion in total liabilities and $227.34 million in total stockholders' equity. Alfred C. Liggins, III, Radio One's CEO and President stated, "The addition of Cable Television to our segment reporting for the first time in Q2 demonstrates the continued evolution of Radio One: core radio revenues for Q2 now represent approximately 62% of the Company's revenues. Our radio performance suffered from difficult competitive situations in Dallas and Houston, and sluggish economic recovery in our Mid-West markets. Our on-line and mobile product offerings continue to develop, and our losses at Interactive One narrowed considerably from the same period last year. I anticipate radio revenues in the third quarter to remain relatively flat, and we continue to focus on controlling the cost base, while developing other revenue streams." A full-text copy of the press release announcing the financial results is available for free at http://is.gd/36nWmg About Radio One Based in Washington, Radio One, Inc. (Nasdaq: ROIAK and ROIA) -- http://www.radio-one.com/-- is a diversified media company that primarily targets African-American and urban consumers. The Company is one of the nation's largest radio broadcasting companies, currently owning 53 broadcast stations located in 16 urban markets in the United States. Radio One operates syndicated programming including the Russ Parr Morning Show, the Yolanda Adams Morning Show, the Rickey Smiley Morning Show, CoCo Brother Live, CoCo Brother's "Spirit" program, Bishop T.D. Jakes' "Empowering Moments", the Reverend Al Sharpton Show, and the Warren Ballentine Show. The Company also owns a controlling interest in Reach Media, Inc. -- http://www.blackamericaweb.com/-- owner of the Tom Joyner Morning Show and other businesses associated with Tom Joyner. Radio One owns Interactive One -- http://www.interactiveone.com/ -- an online platform serving the African-American community through social content, news, information, and entertainment, which operates a number of branded sites, including News One, UrbanDaily, HelloBeautiful, Community Connect Inc. -- http://www.communityconnect.com/-- an online social networking company, which operates a number of branded Web sites, including BlackPlanet, MiGente, and Asian Avenue and an interest in TV One, LLC -- http://www.tvoneonline.com/-- a cable/satellite network programming primarily to African-Americans. The Company reported a net loss of $26.62 million on $279.90 million of net revenue for the year ended Dec. 31, 2010, compared with a net loss of $48.55 million on $272.09 million of net revenue during the prior year. The Company's balance sheet at March 31, 2011, showed $1.00 billion in total assets, $844.13 million in total liabilities, $31.26 million in redeemable non-controlling interests, and $132.02 million in total stockholders' equity. In its report dated Aug. 23, 2010, for the Company's fiscal 2009 financial statements, Ernst & Young LLP expressed substantial doubt as to the Company's ability to continue as a going concern, given certain covenant violations under the Company's loan agreements which could have resulted in significant portions of the Company's outstanding debt becoming callable by the Company's lenders. The Company noted that these violations were cured as a part of certain refinancing transactions more fully described in our Current Report on Form 8-K filed, Dec. 1, 2010. Having cured these violations, the Company's audited financial statements for 2010 have been prepared assuming that it will continue as a going concern. * * * In the Dec. 10, 2010 edition of the TCR, Moody's confirmed the Caa1 rating for Radio One, Inc.'s Corporate Family Rating and confirmed its Caa2/LD Probability of Default Rating. According to Moody's, the Caa1 corporate family rating will reflect Radio One's high pro forma debt-to-EBITDA leverage of approximately 8.0x (incorporating Moody's standard adjustments) mitigated by improved operating performance due to expected political advertising gains in 4Q10 followed by double digit EBITDA gains in 1Q11 compared to a weak 1Q10. Despite expected growth in EBITDA and improving debt-to-EBITDA leverage ratios, reported debt balances will remain flat at approximately $655 million for the next 12 months due to the anticipated funding of the TV One capital call as well as the potential accretion of the PIK portion of the new 12.5%/15% subordinated notes due 2016. As reported by the Troubled Company Reporter on March 11, 2011, Standard & Poor's Ratings Services said it raised its long-term corporate credit rating on U.S. radio broadcaster Radio One Inc. to 'B-' from 'CCC+'. The rating outlook is stable. "The 'B-' rating and stable outlook reflect S&P's view that the proposed transaction will improve Radio One's financial flexibility by eliminating near-term refinancing risk and increasing headroom under financial covenants," said Standard & Poor's credit analyst Michael Altberg. "Going forward, S&P believes the company's increased ownership in TV One LLC, a growing African American-targeted cable TV network, provides additional diversity to Radio One's business profile and access to a more stable revenue stream." REAL ESTATE: Sells Investment Properties to Orlean Company ---------------------------------------------------------- Real Estate Associates Limited VII holds a general partner interest in Real Estate Associates IV, Oakwood Apartments Ltd. - Phase I, Oakwood Apartments Ltd. - Phase II, Birch Manor Apartments Phase I Ltd., Birch Manor Apartments Phase II Ltd. and Richards Park Apartments Limited Partnership. On Aug. 8, 2011, each of the partners entered into an agreement of sale and purchase to sell its investment property to The Orlean Company in exchange for, among other things, (i) full satisfaction of the non-recourse note payable due to an affiliate of the Purchaser and (ii) the sum of one dollar. The Company does not expect to receive any proceeds from the sale of the property. The Company had no investment balance remaining at March 31, 2011. REA IV holds 98.99% limited partnership interest in Bellair Manor Ltd., Oak Hill Apartments, Ltd., Yorkview Estates, Ltd, Mount Union Apartments, Ltd., and Ivywood Apartments Ltd. On Aug. 8, 2011, each of the partners entered into an agreement of sale and purchase to sell their investment property to The Orlean Company in exchange for (i) full satisfaction of the non-recourse note payable due to an affiliate of the Purchaser, (ii) the assumption of the outstanding mortgage loan encumbering the property, and (iii) the sum of one dollar. The Company does not expect to receive any proceeds from the sale of the property except for Yorkview. The Company had no investment balance remaining at March 31, 2011. A full-text copy of the Form 8-K is available for free at: http://is.gd/xXcntv About Real Estate Associates Real Estate Associates Limited VII is a limited partnership which was formed under the laws of the State of California on May 24, 1983. On February 1, 1984, the Partnership offered 2,600 units consisting of 5,200 limited partnership interests and warrants to purchase a maximum of 10,400 additional limited partnership interests through a public offering managed by E.F. Hutton Inc. The Partnership received $39,000,000 in subscriptions for units of limited partnership interests (at $5,000 per unit) during the period from March 7, 1984 to June 11, 1985. The Partnership will be dissolved only upon the expiration of 50 complete calendar years -- December 31, 2033 -- from the date of the formation of the Partnership or the occurrence of various other events as specified in the Partnership agreement. The principal business of the Partnership is to invest, directly or indirectly, in other limited partnerships which own or lease and operate Federal, state and local government-assisted housing projects. The general partners of the Partnership are National Partnership Investments Corp., a California Corporation, and National Partnership Investments Associates II. The business of the Partnership is conducted primarily by NAPICO, a subsidiary of Apartment Investment and Management Company, a publicly traded real estate investment trust. The Partnership holds limited partnership interests in 11 local limited partnerships as of both March 31, 2010, and December 31, 2009. The Partnership also holds a general partner interest in Real Estate Associates IV, which, in turn, holds limited partnership interests in nine additional Local Limited Partnerships; therefore, the Partnership holds interests, either directly or indirectly through REA IV, in twenty (20) Local Limited Partnerships. The general partner of REA IV is NAPICO. The Local Limited Partnerships own residential low income rental projects consisting of 1,387 apartment units at both March 31, 2010, and December 31, 2009. The mortgage loans of these projects are payable to or insured by various governmental agencies. The Company's balance sheet at Sept. 30, 2010, showed $1.62 million in total assets, $20.62 in total liabilities, and a stockholders' deficit of $19.00 million. REAL MEX RESTAURANTS: Delays Filing of Quarterly Report ------------------------------------------------------- Real Mex Restaurants, Inc., informed the U.S. Securities and Exchange Commission that it was not able complete its Quarterly Report on Form 10-Q for the period ended June 26, 2011, on or before the Aug. 10, 2011, prescribed due date without unreasonable effort or expense. The Company performs an annual goodwill impairment test in the fourth quarter of its fiscal year. However, given recent results of operations combined with breaches of certain covenants under the Company's significant debt agreements for which waivers were obtained and related obligations of the Company to restructure its significant debt agreements, the Company believes that the presence of these impairment indicators necessitates testing for impairment on an interim basis as of June 26, 2011. According to the Company, it was not able to complete the required analysis to determine the amount of the goodwill impairment charge prior to the prescribed filing date. The Company intends to file its Quarterly Report on Form 10-Q for the period ended June 26, 2011, as promptly as practicable, and expects that such filing will be made by the Aug. 15, 2011, extended deadline. About Real Mex Based in Cypress, California, Real Mex Restaurants, Inc., owns and operates restaurants, primarily through its major subsidiaries El Torito Restaurants, Inc., Chevys Restaurants, LLC, and Acapulco Restaurants, Inc. The Company operated 183 restaurants as of March 28, 2010, of which 152 were located in California and the remainder were located in 12 other states, primarily under the trade names El Torito Restaurant(R), Chevys Fresh Mex(R) and Acapulco Mexican Restaurant Y Cantina(R). In addition, the Company franchised or licensed 34 restaurants in 12 states and two foreign countries as of March 28, 2010. The Company's other major subsidiary, Real Mex Foods, Inc., provides internal production, purchasing and distribution services for the restaurant operations and also provides distribution services and manufactures specialty products for sale to outside customers. Real Mex carries a 'Caa2' Corporate Family Rating, and stable Outlook from Moody's Investors Service. At the end of August 2010, Moody's said the 'Caa2' CFR continues to reflect the challenges Real Mex will face to reverse its revenue decline primarily driven by the ongoing, albeit somewhat decelerated, negative same store sales trend, in a very difficult operating environment for casual dining concepts. The rating also incorporates the company's high financial leverage, poor interest coverage and weak free cash flow generation. As reported by the TCR on June 28, 2011, Standard & Poor's Ratings Services lowered its corporate credit rating on Cypress, Calif.- based Real Mex Restaurants Inc. to 'CCC' from 'B-'. "The rating actions reflect our view that operating performance will remain weak in 2011, likely requiring the company to amend financial covenants," said Standard & Poor's credit analyst Andy Sookram. The Company reported a net loss of $17.78 million on $227.91 million of total revenues for the six months ended Dec. 26, 2010, compared with a net loss of $49.59 million on $500.60 million of total revenues for the fiscal year ended Dec. 27, 2009. The Company's balance sheet at March 27, 2011, showed $276.64 million in total assets, $255.35 million in total liabilities and $21.29 million in total stockholders' equity. REDDY ICE: Incurs $1.9 Million Net Loss in Second Quarter --------------------------------------------------------- Reddy Ice Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $1.94 million on $106.49 million of revenue for the three months ended June 30, 2011, compared with net income of $2.13 million on $104.16 million of revenue for the same period a year ago. The Company also reported a net loss of $41.04 million on $147.24 million of revenue for the six months ended June 30, 2011, compared with a net loss of $20.46 million on $140.05 million of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $476.62 million in total assets, $546.36 million in total liabilities and a $69.73 million total stockholders' deficit. "We are pleased to report that our actual revenues and EBITDA for the first six months of 2011 grew together on a year over year basis for the first time since 2006. Although encouraged by recent results, we aspire to even stronger performance and execution against our fundamentals and growth opportunities," commented Chief Executive Officer and President Gilbert M. Cassagne. "The continued implementation of certain cost efficiency projects provided benefits during the second quarter, while increases in commodity prices and certain other costs and the anticipated carryover effects of 2010 competitive activities presented challenges." A full-text copy of the Form 10-Q is available for free at: http://is.gd/NnD5Uf About Reddy Ice Reddy Ice Holdings, Inc. -- http://www.reddyice.com/-- manufactures and distributes packaged ice in the United States. The company serves variety of customers in 31 states and the District of Columbia under the Reddy Ice brand name. Reddy Ice reported a net loss of $32.50 million on $315.45 million of revenue for the year ended Dec. 31, 2010, compared with net income of $14.30 million on $312.33 million of revenue during the prior year. * * * Reddy Ice carries 'B-' issuer credit ratings, with "negative" outlook, from Standard & Poor's. As reported by the Troubled Company Reporter on Aug. 17, 2010, Moody's Investors Service lowered Reddy Ice Holdings' corporate family and probability-of-default ratings to B3 from B2, and its $12 million senior discount notes due 2012 to Caa2 from Caa1. Moody's also lowered the rating on Reddy Ice Corporations' $300 million first lien senior secured notes due 2015 to B2 from B1 and the $139 million second lien notes due 2015 to Caa2 from Caa1. The ratings outlook remains negative. The speculative grade liquidity rating was affirmed at SGL-3. The ratings downgrade was prompted by Reddy Ice's elevated financial leverage through the first half of 2010 due to weaker than expected operating performance and the expectation that leverage will remain elevated. The B3 corporate family rating considers ongoing operational risks related to weather as well as increasing acquisition activity. REOSTAR ENERGY: Unsecureds to Get Pro Rata Share of 20% Over Time ----------------------------------------------------------------- ReoStar Energy Corporation, et al., and co-proponent Russco Energy LLC, filed with the U.S. Bankruptcy Court for the Northern District of Texas on Aug. 2, 2011, a First Amended Disclosure Statement in support of the Debtors' First Amended Joint Plan of Reorganization dated Aug. 2, 2011. The Plan Proponent, Russco, is a Texas Limited Liability Company. Russco was formed on June 24, 2011. Russco will provide equity and new financing for ReoStar, The Plan provides for the restructure of Debtors and their emergence from bankruptcy as reorganized privately held entities. The Plan designates 7 Classes of Claims and Interests: Class 1 - Secured Tax Claims. Class 2.1 - Secured Non-Tax Claims of M&M Lienholders. Class 2.2 - Secured Non-Tax Claims of BT & MK. Class 3.1 - Priority Unsecured Claims of ReoStar Energy. Class 3.2 - Priority Unsecured Claims of ReoStar Operating. Class 4.1 - General Unsecured Claims of ReoStar Energy. Class 4.2 - General Unsecured Claims of ReoStar Operating. Class 4.3 - General Unsecured Claim of BT & MK. Class 5 - Subordinated and Penalty Claims. Class 6 - Interests. Class 7 - Subordinated Interests. Class 1 is unimpaired and deemed to vote to accept the the Plan. Classes 2.1, 2.2, 3.1, 3.2, 4.1, 4.3 and 6 are impaired and are entitled to vote. Classes 5 and 7 will not receive or retain any property under the Plan and are presumed to vote to reject the Plan and, thus, their votes from such Classes will not be solicited. After payment of Secured Claims, Administrative Claims, and Priority Claims under the priorities of the Bankruptcy Code, the Debtors have agreed to pay some holders of Allowed General Unsecured Claims their Pro Rata Share of (a) 20% of their Allowed General Unsecured Claim amounts over 36 equal monthly payments starting on the first business day following the Effective Date, plus up to (b) 50% of the Net Proceeds, if any, from all Estate Actions pursued by the Debtors. The Allowed secured claim of BT & MK Energy and Commodities, LLC (of unknown amount) will be paid over 10 years amortized at 5%. BT & MK's Allowed unsecured claim (of unknown amount) will receive 20% of its claim paid over 2 years. All Class 6 Interests in the Debtors will be canceled as of the Effective Date. New interests will be sold to the Interested Purchasers. The Debtors will accept the highest amount offered for the new equity in the Reorganized Debtors to the Debtors on or before the Confirmation Hearing, which amount will be accepted by the Debtors for the purchase of interests in the Reorganized Debtors. At a minimum, the Interest Purchase Price will be: Russco Energy LLC -- 65% of the new interests in the Reorganized Debtors for the Interest Purchase Price of $325,000 Cash on the Effective Date and the provision of $13 million in working capital within one year of the Effective Date; The Rife/Bennett Group -- 35% of the new interests in the Reorganized Debtors for the Interest Purchase Price of $175,000 Cash on the Effective Date. The Rife/Bennett Group currently owns a majority of ReoStar's shares. Counsel for Russco Energy LLC may be reached at: Stephanie D. Curtis, Esq. Mark A. Castillo, Esq. Curtis | Castillo PC 901 Main Street, Suite 651 Dallas, TX 75202 Tel: (214) 752-2222 Fax: (214) 752-0709 A copy of the First Amended Disclosure Statement is available at: http://bankrupt.com/misc/reostar.1stamendedDS.pdf BT & MK had objected to the Disclosure Statement [Docket No. 217) filed in support of the Debtors' and co-proponent Russco's proposed joint plan of reorganization dated June 30, 2011. BT & MK objected on the following grounds: -- The proposed Plan is unconfirmable. The Plan had capped BT & MK's claim at $4.5 million. In addition, there is nothing in the Plan which allows or Disclosure Statement that would allow BT & MK to credit bid its secured claim. The Plan also violates the absolute priority rule. -- The Disclosure Statement lacks adequate information. There is no adequate financial information about the prior operations of either ReoStar or Russco Energy. Creditors should also be provided financial information about Rife Oil Properties and Joe Bill Bennett, who is one of the members of the so-called "Rife/Bennett Group." Counsel for BT & MK may be reached at: David S. Elder, Esq. Benjamin H. Price, Esq. GARDERE WYNNE SEWELL LLP 1000 Louisiana, Suite 3400 Houston, TX 77002-5011 Tel: (713) 276-5750 Fax: (713) 276-6750 About ReoStar Energy Fort Worth, Texas-based ReoStar Energy Corporation is engaged in the exploration, development and acquisition of oil and gas properties, primarily located in the state of Texas. The Company owns roughly 9,000 acres of leasehold, which include 5,000 acres of exploratory and developmental prospects as well as 4,000 acres of enhanced oil recovery prospects. The Company filed for Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 10-47176) on Nov. 1, 2010. Bruce W. Akerly, Esq., and Arthur A. Stewart, Esq., at Cantey Hanger LLP, in Dallas, represent the Debtors in their restructuring efforts. Greenberg Taurig, LLP, serves as special corporate/securities counsel. Reostar Energy disclosed $15,335,337 in assets and $16,391,412 in liabilities. ReoStar Energy's bankruptcy case is jointly administered with ReoStar Gathering, Inc., ReoStar Leasing, Inc., and ReoStar Operating, Inc. ReoStar Energy is the lead case. No trustee was appointed in the Debtors' cases. On Jan. 10, 2011, Michael McConnell was appointed as Chapter 11 examiner in the Debtors cases. RIO GRANDE: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Rio Grande Studios, LLC P.O. Box 91537 Albuquerque, NM 87199-1537 Bankruptcy Case No.: 11-13639 Chapter 11 Petition Date: August 11, 2011 Court: U.S. Bankruptcy Court District of New Mexico (Albuquerque) Judge: James S. Starzynski Debtor's Counsel: Albert W. Schimmel, III, Esq. SCHIMMEL LAW OFFICE 320 Gold Avenue SW, Suite 300A P.O. Box 8 Albuquerque, NM 87103-0008 Tel: (505) 837-4400 Fax: (505) 837-2528 E-mail: spike@schimmellaw.com Estimated Assets: $0 to $50,000 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 Michael Jacobs, managing member. RIVER ROCK: Enters Into $9-Mil. Temporary Vehicle Access Easement ----------------------------------------------------------------- The River Rock Entertainment Authority entered into a Grant of Temporary Emergency Vehicle Access Easement with a group of individuals and family trusts that will allow the Authority to construct an emergency vehicle access road that is required pursuant to the terms of the Memorandum of Agreement, as amended, dated March 18, 2008, between Sonoma County and the Dry Creek Rancheria Band of Pomo Indians. The Authority will pay $9.0 million to the Grantors pursuant to the Easement. The Easement is effective until July 31, 2016. In a separate agreement, the Tribe has agreed to acquire from the Grantors an approximately 310-acre parcel of land contiguous to the Tribe's reservation that includes the land that is the subject of the Easement. The Authority, the Tribe and the Grantors have agreed that the Easement Acquisition Price will be credited towards the purchase price for the Property. The Tribe has agreed to pay the balance of the purchase price for the Property to the Grantors over five years pursuant to a note from the Grantors that requires a final payment by the Easement Expiration Date. The Authority expects to commence construction of the emergency vehicle access road in the near future so as to complete the construction in 2012 within the timeframes required by the MOA. A full-text copy of the Grant of Temporary Emergency Vehicle Access Easement is available for free at http://is.gd/BU2Nab About River Rock Headquartered in Geyserville, California, River Rock Entertainment Authority is a governmental instrumentality of the Dry Creek Rancheria Band of Pomo Indians, a federally recognized Indian tribe. River Rock Casino is a governmental development project of the Authority. The Casino offers Class III slot and video poker gaming machines, house banked table games, including Blackjack, Three card poker, Mini-baccarat and Pai Gow poker, Poker, featuring Texas Hold' em, comprehensive food and non-alcoholic beverage offerings, and goods for sale on tribal land located in Geyserville, California. The Company's balance sheet at March 31, 2011, showed $229.83 million in total assets, $219.38 million in total liabilities, all current, and $10.45 million in total net assets. * * * As reported by the TCR on March 18, 2011, Moody's Investors Service downgraded River Rock Entertainment Authority's Corporate Family Rating and Probability of Default Rating to Caa1 from B2, and the rating on the $200 million senior notes due 2011 to Caa1 from B2. All ratings are kept under review for further possible downgrade. The downgrade of CFR to Caa1 reflects the significant refinancing risk stemming from upcoming maturity of RREA's $200 million senior notes on Nov. 1, 2011 and lack of evidence that the Authority has made meaningful progress in addressing the maturity since its ratings were initially placed under review for possible downgrade in October 2010. In the Dec. 13, 2010 edition of the Troubled Company Reporter, Standard & Poor's Ratings Services lowered its ratings on Sonoma County, California-based River Rock Entertainment Authority; the issuer credit rating was lowered to 'B-' from 'B+'. At the same time, S&P placed the ratings on CreditWatch with negative implications. RREA was created to operate the River Rock casino for the Dry Creek Rancheria Band of Pomo Indians (the Tribe). "The rating downgrade and CreditWatch listing reflect River Rock's limited progress in addressing near-term refinancing needs associated with its $200 million senior notes due November 2011, as well as other debt held at the Tribe," said Standard & Poor's credit analyst Michael Halchak. "With less than 12 months to the maturity on the senior notes, S&P has become increasingly concerned around River Rock's ability to successfully address these refinancing needs. In addition, S&P believes River Rock faces additional liquidity needs related to the Tribe's memorandum of agreement with Sonoma County, associated with infrastructure spending needs in and around the casino." ROBB & STUCKY: Wants Settlement and Release Deal with Lender OK'd ----------------------------------------------------------------- Robb & Stucky Limited LLLP, asks the U.S. Bankruptcy Court for the Middle District of Florida to: i) dismiss its Chapter 11 case; and ii) approve that certain Settlement and Release Agreement among the Debtor, CIRS Financing LLC and CIRS Management LLC, in their capacity as secured lenders to the Debtor, and the Official Committee of Unsecured Creditors. The Debtor relates that the sale of substantially all of its assets to Hudson Capital Partners, LLC and HYPERAMS, LLC concluded on June 30, 2011. As of the date of the motion, the Debtor has sold its interests in its intellectual property, its fleet of vehicles and tractor trailers, and its other non-core assets and has abandoned its leasehold mortgage and interests in its other mortgaged property. The Debtor has also rejected all of its leasehold interests for all of its retail locations, its warehouses, and its corporate headquarters, and the Debtor has rejected or assumed and assigned for value, all of its executory contracts. The Debtor is in the process of pursuing uncollected accounts receivable and the return of certain credit card holdbacks. Other than the liquidation of these remaining assets, there is little left to do materially in the case and, as such, the Debtor is in the process of winding down its operations. The Debtor adds that it is unable to fully repay all of its secured creditors, including the Collier Lenders, and likely will not have sufficient funds to make a distribution to unsecured priority claims, let alone pay them in full as required to confirm a chapter 11 plan under section 1129(a)(9) of the Bankruptcy Code. Given the Debtor's likely inability to confirm a chapter 11 plan and its lack of funding to finance its wind down, it has engaged in extensive, good faith negotiations with the Collier Lenders and the Committee concerning the terms of a structured dismissal of the case that would also resolve the Collier Dispute. Under the agreement, the Collier Lenders will consent to the use of their cash collateral to fund the Debtor's wind-down budget and, in exchange, for such consent and as adequate protection for the diminution in value of the collateral, the Collier Lenders will receive the same release provided to Bank of America, N.A. under the BofA settlement agreement, additional adequate protection liens on $300,000 of unencumbered cash, and the allowance and payment of the Collier Debt out of the proceeds of the liquidation of the Debtor's assets subject to Collier's existing and additional replacement liens. Further, the agreement provides that the Collier Lenders will forgo their request for replacement liens on the Debtor's remaining unencumbered assets, the proceeds of which will be used to fund distributions to allowed administrative expense claims. The majority of the assets of the estate are encumbered by the prepetition liens of the Collier Lenders. The liens of the Collier Lenders extend to the accounts receivable of the Debtor. Under the Agreement, the Debtor will assign its interests in such receivables, along with any other recoverable assets that comprise the Collier Lenders' collateral to the Collier Lenders at such time as the Collier Lenders so request. Finally, the agreement provides for the dismissal of the case subject to procedures that will ensure due process for all parties in interest while minimizing the professional fees and costs, and the corresponding diminution in distributions payable to creditors of the estate, and diminution in the value of the Collier Lenders' collateral, that continue to accrue with each day the Bankruptcy Case remains in chapter 11. About Robb & Stucky Sarasota, Florida-based Robb & Stucky Limited LLLP -- dba Robb & Stucky; Robb & Stucky Interiors; Fine Design Interiors, a division of Robb & Stucky; Robb & Stucky Patio; R&S Home of Fine Decorators; and Home of Fine Design by Robb & Stucky -- is a retailer of upscale, high-end, interior-design-driven home furnishings in the U.S. It filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 11-02801) on Feb. 18, 2011. Paul S. Singerman, Esq., and Jordi Guso, Esq., at Berger Singerman PA, serve as the Debtor's bankruptcy counsel. FTI Consulting, Inc., is the Debtor's advisor and Kevin Regan is the Debtor's chief restructuring officer. Bayshore Partners, LLC, is the Debtor's investment banker. AlixPartners, LLP, serves as the Debtor's communications consultants. Epiq Bankruptcy Solutions, LLC, serves as the Debtor's claims and notice agent. In its schedules, the Debtor disclosed $77,705,081 in assets and $91,859,125 in liabilities as of the Chapter 11 filing. Donald F. Walton, U.S. Trustee for Region 21, appointed the Official Committee of Unsecured Creditors in the Debtor's case. The Committee tapped Cooley LLP as its lead counsel; Broad and Cassel as its local bankruptcy counsel; and BDO USA LLP as its financial advisor. ROBERTS LAND: Files List of Six Largest Unsecured Creditors ----------------------------------------------------------- Roberts Land & Timber Investment Corp. and Union Land & Timber Corp. have filed with the U.S. Bankruptcy Court for the Middle District of Florida a list of its six largest unsecured creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Avery C. Roberts Shareholder Loan Post Office Box 233 to Roberts Land & Lake butler, FL 32054 Timber $14,687,039.60 Avery C. Roberts Corporate Distributions Post Office Box 233 Owed by Roberts Land Lake butler, FL 32054 & Timber $3,943,666.30 North Florida Monies Loaned Reforestation Services to Roberts Land Post Office Box 365 & Timber Lake Butler, FL 32054 $554,600.00 Avery C. Roberts Shareholder Loan to Union Land & Timber $903,585.51 Roberts Land & Timber Loan to Union Land Investment Corp. & Timber $20,000.00 TD Bank, N.A. Undersecured Portion of Real Estate Loan to Roberts Land & Timber $129,042.68 About Roberts Land Roberts Land & Timber Investment Corp. filed a Chapter 11 petition (Bankr. M.D. Fla. Case No. 11-03851) in Jacksonville, Florida, on May 25, 2011. Andrew J. Decker, III, Esq., at The Decker Law Firm, P.A., in Live Oak, Florida, serves as counsel to the Debtor. Affiliate Union Land & Timber Corp. also sought Chapter 11 protection (Case No. 11-03853). The Debtors are real estate holding and development companies as well as holder of private mortgages. The Debtors receive income from the sale and development of real estate, management of real estate developments, mortgage receivables, cattle grazing leases and hunting leases. In its schedules, Roberts Land disclosed assets of $26.7 million with debt totaling $12.2 million, all secured. The principal properties are 1,500 acres in Baker County, Florida and 3,300 acres in Union County, Florida. In its schedules, Union Land disclosed $2,376,170 in assets and $11,945,819 in liabilities as of the petition date. ROTECH HEALTHCARE: Incurs $1.9-Mil. Net Loss in Second Quarter -------------------------------------------------------------- Rotech Healthcare Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $1.97 million on $122.43 million of net revenues for the three months ended June 30, 2011, compared with net earnings of $3.39 million on $124.31 million of net revenues for the same period a year ago. The Company also reported a net loss of $4.66 million on $243.94 million of net revenues for the six months ended June 30, 2011, compared with a net loss of $3.11 million on $247.68 million of net revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $289.17 million in total assets, $571.50 million in total liabilities, $4.90 million in Series A convertible redeemable preferred stock and a $287.22 million total stockholders' deficiency. "In comparing second quarter of 2011 with that of 2010, we are pleased to report continued improvement in profitability margins with increases in gross profit and adjusted EBITDA as percentages of net revenue, as well as a reduction in SG&A as a percentage of net revenue," said Philip Carter, president and chief executive officer. "This was in spite of a $5.7 million decline in Medicare reimbursements," he added. A full-text copy of the Form 10-Q is available for free at: http://is.gd/AXne5x About Rotech Healthcare Based in Orlando, Florida, Rotech Healthcare Inc. (NASDAQ: ROHI) -- http://www.rotech.com/-- provides home medical equipment and related products and services in the United States, with a comprehensive offering of respiratory therapy and durable home medical equipment and related services. The company provides equipment and services in 48 states through approximately 500 operating centers located primarily in non-urban markets. The Company reported a net loss of $4.20 million on $496.42 million of net revenue for the year ended Dec. 31, 2010, compared with a net loss of $21.08 million on $479.87 million of net revenue during the prior year. * * * In October 2010, Standard & Poor's Ratings Services raised its corporate credit rating on Rotech Healthcare to 'B-' from 'CCC'. The outlook is positive. In the March 22, 2011, edition of the TCR, Standard & Poor's Ratings Services said that it raised its corporate credit rating to 'B' from 'B-' on Orlando, Fla.-based Rotech Healthcare Inc., following the completion of the company's $290 million second-lien senior secured notes offering. "The ratings on Rotech Healthcare Inc. reflect the company's weak business risk profile, incorporating Rotech's exposure to Medicare reimbursement reductions for its products and services," said Standard & Poor's credit analyst Jesse Juliano. The rating also reflects the company's highly leveraged financial risk profile. As reported by the Troubled Company Reporter on March 10, 2011, Moody's Investors Service upgraded Rotech Healthcare Inc.'s Corporate Family Rating and Probability of Default Rating to B2 from Caa1 in connection with the proposed refinancing of the company's senior subordinated notes due 2012 with a new $290 million of senior secured notes offering due 2018. The B2 Corporate Family Rating reflects Moody's expectation that the company will continue its trend of improving credit metrics through better operating performance and small strategic acquisitions. Moody's expects credit metrics to be relatively weak, albeit in line with the B2 rating with debt-to-EBITDA leverage of approximately 4.9 times at the time of the transaction. However Moody's also expects additional de- leveraging over time through EBITDA expansion and the generation of modest free cash flow. SANUWAVE HEALTH: Incurs $3.5 Million Net Loss in Second Quarter --------------------------------------------------------------- Sanuwave Health, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $3.57 million on $163,749 of revenue for the three months ended June 30, 2011, compared with a net loss of $2.72 million on $117,226 of revenue for the same period during the prior year. The Company also reported a net loss of $5.75 million on $415,502 of revenue for the six months ended June 30, 2011, compared with a net loss of $5.72 million on $260,328 of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $10.31 million in total assets, $8.17 million in total liabilities and $2.14 million in total stockholders' equity. Christopher M. Cashman, President and CEO of SANUWAVE, said, "During the second quarter of 2011 and in recent weeks we achieved a number of important milestones in support of our goal of commercializing dermaPACE in wound healing. We were especially pleased to submit the final module of our Premarket Approval (PMA) application with the U.S. Food and Drug Administration (FDA) for dermaPACE to treat diabetic foot ulcers. We reported 24-week top- line data from our double-blinded, sham-controlled, pivotal Phase III clinical trial demonstrating that dermaPACE safely and effectively heals diabetic foot ulcers, which represents a $2 billion market opportunity in the U.S. alone and remains a major area of unmet medical need." A full-text copy of the Form 10-Q is available for free at: http://is.gd/CH3UL0 About Sanuwave Health Alpharetta, Ga.-based SANUWAVE Health, Inc. (OTC BB: SNWV) -- http://www.sanuwave.com/-- is an emerging regenerative medicine company focused on the development and commercialization of non-invasive, biological response-activating devices for the repair and regeneration of tissue, musculoskeletal and vascular structures. HLB Gross Collins, P.C., in Atlanta, Ga., expressed substantial doubt about SANUWAVE Health's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company incurred a net loss of $14.9 million and $6.2 million during the years ended Dec. 31, 2010, and 2009, respectively, and, as of those dates, had a working capital deficiency of approximately $7.0 million and $187,000, respectively. In addition, the independent auditors said that the Company is economically dependent upon future capital contributions or financing to fund ongoing operations. SAWMILL GATEHOUSE: Case Summary & 11 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Sawmill Gatehouse LLC One Sawmill Village Drive Snowshoe, WV 26209 Bankruptcy Case No.: 11-01449 Chapter 11 Petition Date: August 11, 2011 Court: United States Bankruptcy Court Northern District of West Virginia (Elkins) Judge: Patrick M. Flatley Debtor's Counsel: Steven L. Thomas, Esq. KAY, CASTO & CHANEY 1600 Charleston National Plaza P.O. Box 2031 Charleston, WV 25327 Tel: (304) 345-8900 Fax: (304) 345-8909 E-mail: s.thomas@kaycasto.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $0 to $50,000 A list of the Company's 11 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wvnb11-01449.pdf The petition was signed by Samuel M. Levin, Sawmill Gatehouse, LLC - manager. SCOTTO RESTAURANT: Involuntary Chapter 11 Case Summary ------------------------------------------------------ Alleged Debtor: Scotto Restaurant Group, LLC fka Scotto Holdings, LLC 137 Cross Center Road, Suite 234 Denver, NC 28037 Case Number: 11-40506 Involuntary Chapter 11 Petition Date: August 11, 2011 Court: Western District of North Carolina (Shelby) Judge: George R. Hodges Petitioner's Counsel: Kiah T. Ford, IV, Esq. PARKER, POE, ADAMS & BERNSTEIN LLP 401 South Tryon Street, Suite 3000 Three Wachovia Center Charlotte, NC 28202 Tel: (704) 372-9000 E-mail: chipford@parkerpoe.com Scotto Restaurant's petitioners: Petitioner Nature of Claim Claim Amount ---------- --------------- ------------ Lester B. High unsec. Promissory $754,399 2655 St. Peters Rd. note Pottstown, PA 19465 William Holmes unsec. promissory $136,229 422 Mud Ln. note Northampton, PA 18067 Donald L. Myers unsec. Promissory $957,322 10935 E. San Felipe Ave note Clovis, CA 93619 SEAWALK INVESTMENTS: Voluntary Chapter 11 Case Summary ------------------------------------------------------ Debtor: Seawalk Investments, LLC 115 First Ave. North Jacksonville Beach, FL 32250 Bankruptcy Case No.: 11-05969 Chapter 11 Petition Date: August 11, 2011 Court: United States Bankruptcy Court Middle District of Florida (Jacksonville) Judge: Jerry A. Funk Debtor's Counsel: Janet H. Thurston, Esq. COHEN & THURSTON, P.A. 1723 Blanding Blvd., Suite 102 Jacksonville, FL 32210 Tel: (904) 388-6500 E-mail: cohenthurston@cs.com Scheduled Assets: $1,255,000 Scheduled Debts: $1,253,366 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by James R. Stockton, III, vice president of Buyer's Broker Realty Consultants, Inc., Debtor's managing member. SOUTHERN ELECTRIC: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Southern Electric Coil LLC 5025 Columbia Avenue Hammond, IN 46327 Bankruptcy Case No.: 11-32840 Chapter 11 Petition Date: August 11, 2011 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: Pamela S. Hollis Debtor's Counsel: Gregory K. Stern, Esq. GREGORY K. STERN, P.C. 53 West Jackson Blvd., Suite 1442 Chicago, IL 60604 Tel: (312) 427-1558 Fax: (312) 427-1289 E-mail: gstern1@flash.net 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/ilnb11-32840.pdf The petition was signed by Richard A. Skurka, member. SUMMIT III: Case Summary & 17 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Summit III LLC One Sawmill Village Drive Snowshoe, WV 26209 Bankruptcy Case No.: 11-01448 Chapter 11 Petition Date: August 11, 2011 Court: United States Bankruptcy Court Northern District of West Virginia (Elkins) Judge: Patrick M. Flatley Debtor's Counsel: Steven L. Thomas, Esq. KAY, CASTO & CHANEY 1600 Charleston National Plaza P.O. Box 2031 Charleston, WV 25327 Tel: (304) 345-8900 Fax: (304) 345-8909 E-mail: s.thomas@kaycasto.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $1,000,001 to $10,000,000 The petition was signed by Samuel M. Levin, Summit III, LLC, manager. Debtor's List of 17 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Anthony J. Skatell, III $1,400,000 1036 Johnnie Dodds Blvd Ste. C Mt. Pleasant, SC 29464 Craig Duet $450,000 Attn: Brian C. Duffy Duffy & Young LLC 96 Broan Street Charleston, WV 29401 84 Lumber Company $300,000 Attn: James E. Smith 1019 Route 519, Bldg. 2 Eighty Four, PA 15330 Mr. Reg Messinger $200,000 Spilman Thomas & Battle PLLC Attn: Carl H. Cather, III PO Box 615 Morgantown, WV 26507-0615 Kenneth L. Royal $150,000 Spilman Thomas & Battle $120,000 Snowshoe Mountain $120,000 Assessment Terradon-Engineering $100,000 Services Pocahontas County $75,000 Assessor Sawmill Village HOA $50,000 CMI $35,000 Samuel M. Levin $20,000 Balzer and Associates $10,000 The Homestead POA $5,000 Pocahontas County $5,000 PDS Sewer Utility Cheat Mountain Water $2,500 Company Allegheny Power $1,000 (Monpower) SUNDERLAGE RESOURCE: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Sunderlage Resource Group Inc. 2380 Esplanada Dr. #203 Algonquin, IL 60102 Bankruptcy Case No.: 11-83574 Chapter 11 Petition Date: August 12, 2011 Court: United States Bankruptcy Court Northern District of Illinois (Rockford) Judge: Manuel Barbosa Debtor's Counsel: Bradley T. Koch, Esq. HOLMSTROM & KENNEDY P.C. P.O. Box 589 Rockford, IL 61105 Tel: (815) 962-7071 Fax: (815) 962-7181 E-mail: bkoch@holmstromlaw.com Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ilnb11-83574.pdf The petition was signed by Tracy L. Sunderlage, president. Affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- PBT Adminstration, LLC Tracy L. Sunderlage 11-83571 08/12/11 SUNNYVALE BUSINESS: Case Summary & 9 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Sunnyvale Business Square, LLC dba Lakeview Village At Val Vista Lakes P.O. Box 370008 Las Vegas, NV 89137 Bankruptcy Case No.: 11-23121 Chapter 11 Petition Date: August 11, 2011 Court: U.S. Bankruptcy Court District of Arizona (Phoenix) Judge: James M. Marlar Debtor's Counsel: John F. Battaile, Esq. ALTFELD & BATTAILE P.C. 250 N. Meyer Avenue Tucson, AZ 85701 Tel: (520) 622-7733 Fax: (520) 622-7967 E-mail: jfbattaile@abazlaw.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Richard J. Orosel, manager of Orosel Enterprises LLC, manager. Debtor's List of Nine Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Metro Fire Equipment, Inc. Trade Debt $13,198 63 S. Hamilton Place Gilbert, AZ 85233 King Insulation Trade Debt $11,000 10810 N. Tatum Boulevard, #102-329 Phoenix, AZ 85029 Team Framing / Drywall Trade Debt $11,000 428 W. Thunderbird, #702 Phoenix, AZ 85022 Zenelectric Trade Debt $10,000 MVP Tello Development Trade Debt $10,000 Sunset Acoustics, Inc. Trade Debt $8,800 Jade Builders Trade Debt $7,850 AZ Washroom Partitions Trade Debt $6,750 Team Framing / Drywall Trade Debt $5,490 TEXAS ROADRUNNER: Case Summary & 19 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Texas Roadrunner, LLC 615 Peden Street Houston, TX 77006 Bankruptcy Case No.: 11-22784 Chapter 11 Petition Date: August 11, 2011 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Bruce A. Markell Debtor's Counsel: David J. Winterton, Esq. DAVID J. WINTERTON & ASSOC., LTD. 211 N. Buffalo Drive, #A Las Vegas, NV 89145 Tel: (702) 363-0317 E-mail: david@davidwinterton.com Scheduled Assets: $1,100,000 Scheduled Debts: $656,841 A list of the Company's 19 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/nvb11-22784.pdf The petition was signed by Daniel D. Maddox, managing member. TOWN & RANCH: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Town & Ranch, Inc. 505 Don Gaspar Avenue Santa Fe, NM 87501 Bankruptcy Case No.: 11-13647 Chapter 11 Petition Date: August 12, 2011 Court: U.S. Bankruptcy Court District of New Mexico (Albuquerque) Judge: James S. Starzynski Debtor's Counsel: Thomas D. Walker, Esq. THUMA & WALKER, PC 500 Marquette Avenue NW, Suite 650 Albuquerque, NM 87102-5309 Tel: (505) 766-9272 E-mail: twalker@thumawalker.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/nmb11-13647.pdf The petition was signed by Bill W. McCoy, III, operations manager. VITAMINSPICE: Creditors Want Management Removed ----------------------------------------------- Creditors who placed VitaminSpice in Chapter 11 bankruptcy are asking the Bankruptcy Court to oust management and place the company in the hands of a trustee. The Court will consider the request at a hearing on Sept. 6. Five creditors filed an involuntary Chapter 11 petition (Bankr. E.D. Pa. Case No. 16200) against Wayne, Pennsylvania-based VitaminSpice aka Qualsec on Aug. 5, 2011. The creditors, owed roughly $414,000 in the aggregate, are: John Robison in Philadelphia, Pennsylvania; IBT South Florida, LLC, in Fort Lauderdale, Florida; Learned J. Hand in Chapel Hill, North Carolina; and Jehu Hand in Dana Point, California; and Esthetics World in Cheyenne, Wyoming. Judge Magdeline D. Coleman presides over the case. Peter Edward Sheridan, Esq. -- sheridan.pete@gmail.com -- in Philadelphia, Pennsylvania, represents the petitioning creditors. WILSON FAMILY: Case Summary & 18 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Wilson Family Communities, Inc. 110 Wild Basin Road South, Suite 300 Austin, TX 78746 Bankruptcy Case No.: 11-12014 Chapter 11 Petition Date: August 12, 2011 Court: U.S. Bankruptcy Court Western District of Texas (Austin) Judge: H. Christopher Mott Debtor's Counsel: Stephen A. Roberts, Esq. STRASBURGER & PRICE, LLP 600 Congress Avenue, Suite 1600 Austin, TX 78701 Tel: (512) 499-3600 Fax: (512) 499-3660 E-mail: stephen.roberts@strasburger.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 18 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/txwb11-12014.pdf The petition was signed by William E. Weber, president. Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Green Builders, Inc. 11-12013 08/12/11 WOLFGANG DAIRY: Case Summary & 11 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Wolfgang Dairy, LLC 15908 San Road Reedsville, WI 54230 Bankruptcy Case No.: 11-32549 Chapter 11 Petition Date: August 12, 2011 Court: United States Bankruptcy Court Eastern District of Wisconsin (Milwaukee) Debtor's Counsel: Paul G. Swanson, Esq. STEINHILBER, SWANSON, MARES, MARONE & MCDERMOTT 107 Church Avenue P.O. Box 617 Oshkosh, WI 54903-0617 Tel: (920) 426-0456 E-mail: pswanson@oshkoshlawyers.com Scheduled Assets: $3,480,650 Scheduled Debts: $6,695,500 A list of the Company's 11 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wieb11-32549.pdf The petition was signed by Thomas L. Braun, managing member. Affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Hamp Haven Farms 11-32547 08/12/11 * Oaktree Capital Activates Distressed-Debt Fund ------------------------------------------------ Dow Jones' DBR Small Cap reports that Oaktree Capital Management, which recently filed for an initial public offering, has activated a $2.6 billion supplementary fund to take advantage of distressed debt opportunities amid the market turmoil, said people familiar with the situation. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Share- Total Total Holders' Working Assets Equity Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------ -------- ------- ABSOLUTE SOFTWRE ABT CN 116.3 (12.0) (12.6) ACCO BRANDS CORP ABD US 1,135.8 (28.3) 339.3 ALASKA COMM SYS ALSK US 615.6 (37.7) 20.4 AMC NETWORKS-A AMCX US 2,110.5 (1,099.4) 514.7 AMER AXLE & MFG AXL US 2,195.4 (357.9) 50.1 AMERISTAR CASINO ASCA US 2,067.1 (121.9) (40.8) AMR CORP AMR US 25,787.0 (4,509.0) (1,769.0) ANOORAQ RESOURCE ARQ SJ 1,024.0 (77.0) 20.9 AUTOZONE INC AZO US 5,884.9 (1,119.5) (655.3) BLUEKNIGHT ENERG BKEP US 327.4 (45.5) (90.0) BOSTON PIZZA R-U BPF-U CN 146.1 (101.0) 1.3 CABLEVISION SY-A CVC US 6,975.1 (5,439.8) (703.4) CARBONITE INC CARB US 42.6 (11.4) (18.2) CC MEDIA-A CCMO US 16,882.1 (7,270.0) 1,501.0 CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1) CENVEO INC CVO US 1,410.8 (330.1) 223.4 CHEFS WAREHOUSE CHEF US 81.3 (47.8) 12.9 CHENIERE ENERGY CQP US 1,726.6 (559.0) 22.7 CHENIERE ENERGY LNG US 2,619.8 (430.3) (103.2) CHOICE HOTELS CHH US 441.3 (27.9) 6.5 CINCINNATI BELL CBB US 2,658.5 (633.6) 30.5 CLOROX CO CLX US 4,163.0 (86.0) (86.0) DENNY'S CORP DENN US 286.7 (99.5) (39.9) DIRECTV-A DTV US 19,177.0 (1,399.0) 1,270.0 DISH NETWORK-A DISH US 12,827.7 (92.6) 2,164.2 DISH NETWORK-A EOT GR 12,827.7 (92.6) 2,164.2 DOMINO'S PIZZA DPZ US 487.0 (1,171.4) 167.9 DUN & BRADSTREET DNB US 1,767.1 (567.8) (483.7) ECOSYNTHETIX INC ECO CN 45.2 (346.7) 32.2 EXELIXIS INC EXEL US 454.2 (81.8) 90.2 FRANCESCAS HOLDI FRAN US 59.1 (55.5) 13.2 FREESCALE SEMICO FSL US 4,583.0 (4,401.0) 1,329.0 GENCORP INC GY US 987.3 (161.1) 94.3 GLG PARTNERS INC GLG US 400.0 (285.6) 156.9 GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9 GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5 HANDY & HARMAN L HNH US 391.4 (6.5) 18.5 HCA HOLDINGS INC HCA US 23,877.0 (7,534.0) 2,613.0 HOVNANIAN ENT-B HOVVB US 1,736.6 (349.8) 1,071.5 HUGHES TELEMATIC HUTC US 100.6 (94.9) (28.3) INCYTE CORP INCY US 416.7 (136.3) 281.3 IPCS INC IPCS US 559.2 (33.0) 72.1 ISTA PHARMACEUTI ISTA US 135.7 (66.5) 10.4 JUST ENERGY GROU JE CN 1,471.5 (208.2) (299.7) LIN TV CORP-CL A TVL US 797.5 (119.9) 47.4 LIZ CLAIBORNE LIZ US 1,247.3 (211.1) (52.7) LORILLARD INC LO US 2,498.0 (831.0) 904.0 MAINSTREET EQUIT MEQ CN 475.2 (10.5) - MEAD JOHNSON MJN US 2,526.1 (184.5) 652.4 MERITOR INC MTOR US 2,838.0 (963.0) 226.0 MOODY'S CORP MCO US 2,744.6 (16.6) 691.1 MORGANS HOTEL GR MHGC US 604.4 (51.3) 112.0 NATIONAL CINEMED NCMI US 817.6 (329.8) 62.2 NAVISTAR INTL NAV US 9,966.0 (764.0) 1,819.0 NEXSTAR BROADC-A NXST US 558.0 (183.4) 35.4 NPS PHARM INC NPSP US 253.3 (27.3) 201.5 NYMOX PHARMACEUT NYMX US 10.0 (3.3) 6.8 OTELCO INC-IDS OTT US 317.0 (8.6) 21.8 OTELCO INC-IDS OTT-U CN 317.0 (8.6) 21.8 PALM INC PALM US 1,007.2 (6.2) 141.7 PDL BIOPHARMA IN PDLI US 284.3 (293.5) (4.6) PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9) PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9) PRIMEDIA INC PRM US 208.0 (91.7) 3.6 PROTECTION ONE PONE US 562.9 (61.8) (7.6) PURE INDUSTRIAL AAR-U CN 277.1 (8.6) - QUALITY DISTRIBU QLTY US 279.4 (113.4) 47.2 QWEST COMMUNICAT Q US 16,849.0 (1,560.0) (2,828.0) RAPTOR PHARMACEU RPTP US 20.5 (14.6) (21.4) REGAL ENTERTAI-A RGC US 2,367.9 (538.3) (72.9) RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4) REVLON INC-A REV US 1,100.0 (677.5) 144.6 RSC HOLDINGS INC RRR US 2,949.6 (59.2) (205.0) RURAL/METRO CORP RURL US 303.7 (92.1) 72.4 SALLY BEAUTY HOL SBH US 1,725.5 (260.7) 429.3 SINCLAIR BROAD-A SBGI US 1,497.3 (135.3) 69.0 SINCLAIR BROAD-A SBTA GR 1,497.3 (135.3) 69.0 SKULLCANDY INC SKUL US 80.4 (17.7) 38.7 SMART TECHNOL-A SMT US 574.8 (17.3) 194.3 SMART TECHNOL-A SMA CN 574.8 (17.3) 194.3 SUN COMMUNITIES SUI US 1,322.8 (65.4) - TAUBMAN CENTERS TCO US 2,495.4 (426.8) - THERAVANCE THRX US 303.1 (37.5) 253.4 TOWN SPORTS INTE CLUB US 450.6 (4.3) (35.4) UNISYS CORP UIS US 2,642.9 (661.8) 374.7 VANGUARD HEALTH VHS US 4,162.2 (186.6) 356.5 VECTOR GROUP LTD VGR US 941.2 (50.1) 257.6 VERISIGN INC VRSN US 1,795.6 (4.2) 873.4 VERISK ANALYTI-A VRSK US 1,408.1 (144.4) (216.1) VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3) VONAGE HOLDINGS VG US 235.9 (75.0) (65.6) WARNER MUSIC GRO WMG US 3,617.0 (254.0) (650.0) WEIGHT WATCHERS WTW US 1,104.5 (542.4) (274.4) WESTMORELAND COA WLB US 772.4 (180.2) (8.6) WORLD COLOR PRES WC CN 2,641.5 (1,735.9) 479.2 WORLD COLOR PRES WCPSF US 2,641.5 (1,735.9) 479.2 WORLD COLOR PRES WC/U CN 2,641.5 (1,735.9) 479.2 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers" public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors" Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2011. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***