/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/110819.mbx T R O U B L E D C O M P A N Y R E P O R T E R Friday, August 19, 2011, Vol. 15, No. 229 Headlines 155 EAST TROPICANA: Court Okays Garden City Group as Claims Agent 4KIDS ENTERTAINMENT: Posts $4.7-Mil. 2nd Quarter Net Loss 765 REALTY: Albion Wins City License Renewal ABCLD HOLDINGS: Bank Lender to Get 80% Recovery in Liquidation ALLIANCE HEALTHCARE: S&P Cuts Corporate to 'B+' on Weak Demand AMSCAN HOLDINGS: Posts $14.5 Million Net Income in Second Quarter ARK DEVELOPMENT: To Hire Pedro Gomez as Real Estate Appraiser ARK DEVELOPMENT: Files Schedules of Assets & Liabilities ARKANOVA ENERGY: Completes Horizontal Well in Cut Bank Sand AUGUSTA APARTMENTS: Trustee Taps Hire Turner & Johns as Counsel BANKATLANTIC BANCORP: Files Form 10-Q, Posts $23.4MM Income in Q2 BARZEL INDUSTRIES: Settles R.I. Superfund Bankruptcy Claim BERNARD L MADOFF: Mets Owners May Lose Millions on Ruling BERNARD L MADOFF: U.S. Judge to Review Anti-Class Action Suit BERNARD L MADOFF: Investors Appeal Ruling Granting Picard's Fees BERNARD L MADOFF: Trustee Amends $2-Bil. Complaint Against UBS BION ENVIRONMENTAL: Granted New Patent for Phosphorus Removal BMB MUNAI: CEO Kulumbetov Employment Agreement Terminated BRAINY BRANDS: Issues $220,000 Convertible Promissory Notes CADENCE INNOVATION: Judge Approves Liquidation Plan CHARTER COMMS: Uses Low-Yielding Cash for Stock Buybacks CHINA RENEWABLE: Incurs $59,000 Net Loss in Second Quarter COMMONWEALTH BIOTECH: Delays 10-Q After Aussie Unit Sale CUMULUS MEDIA: Files Form 10-Q, Posts $1.3-Mil. Net Income in Q2 DELTA AIR: S&P Gives 'BB' Rating on Series 2011-1 Class B Certs. E-DEBIT GLOBAL: Incurs $284,000 Net Loss in Second Quarter EASTMAN KODAK: Lazard Begins Marketing Process for Patents ENERTECK CORP: Incurs $757,000 Net Loss in Second Quarter ENTELOS INC: Judge Approves Auction Timeline, Lead Bid for Assets EQUINIX INC: S&P Lifts CCR to 'BB-' on Continuing Strong Revenue EVERGREEN SOLAR: Has Plan Deal; Noteholders Bid for Assets EVERGREEN SOLAR: Hearing on Sale Procedures Set for Sept. 6 EVERGREEN SOLAR: Seeks to Pay Up to $2MM in Employee Incentives EVERGREEN SOLAR: Will Not Appeal Nasdaq Delisting of Common Stock EVERGREEN SOLAR: Meeting to Form Committee on Aug. 26 EZENIA! INC: Incurs $1 Million Net Loss in Second Quarter FIDDLER'S CREEK: Bondholders' Request for Examiner Denied FOREST OIL: S&P Lowers Senior Unsecured Debt Ratings to 'B' GENERAL MOTORS: Says Bankruptcy Bars Impala Warranty Suit GLOBAL AVIATION: Cut by S&P to 'CCC+' on Deferred Interest Payment GRAHAM PACKAGING: Reports $33.5-Mil. Net Income in 2nd Quarter GREAT ATLANTIC: Reaches Deal With OfficeMax Over Executive Hiring HARVEST OAKS: Files 2nd Amended Plan; CSMC to be Paid Over Time HASSEN IMPORTS: Files Schedules of Assets and Liabilities HILLSIDE VALLEY: Wants to Hire Regional Capital as Financial Agent HUDSON HEALTHCARE: Hiring Trenk DiPasquale as Bankruptcy Counsel HUDSON HEALTHCARE: Has Green Light to Tap Epiq as Claims Agent HUDSON HEALTHCARE: Sec. 341 Creditors' Meeting Set for Aug. 31 HUDSON HEALTHCARE: Status Conference Scheduled for Oct. 3 HUDSON HEALTHCARE: Council to Vote on Okin Hollander Retention HWI GLOBAL: Inks Forbearance Pact with Primary Secured Lender INSIGHT COMMUNICATIONS: S&P Puts 'B-' Rating $495-Mil. Sr. Notes INTERFACE INC: S&P Raises Corporate Credit Rating to 'BB' INTERNAL FIXATION: Incurs $723,000 Net Loss in Second Quarter INTERNATIONAL FUEL: Completes Sale of 12.8MM Shares for $1-Mil. IRWIN MORTGAGE: Has Approval for Bailey Cavalieri as Counsel IRWIN MORTGAGE: Can Hire Development Specialists for Wind-Down IRWIN MORTGAGE: Files Schedules of Assets and Liabilities JACKSON HEWITT: Lenders' Claim to be Replaced by $100MM Term Loan J.C. EVANS: Taps Cox Smith as Primary Bankruptcy Counsel J.C. EVANS: Taps Burnham Securities as Financial Advisors JONES COUNTY: S&P Lowers Rating on 2009 Revenue Bonds to 'CC' JOSEPH DETWEILER: Creditors Can't Add More Plaintiffs in Suit KT SPEARS: Section 341(a) Meeting Canceled for Lack of Interest LEHMAN BROTHERS: Gets $881-Mil. From 111 Counterparty Settlements LOS ANGELES DODGERS: Paid $5.9-Mil. to Insiders in Past Year LPATH INC: Posts $1.4 Million Net Income in Second Quarter MADISON 92ND: Pursuing Courtyard Financing While in Ch. 11 MADISON 92ND: Case Summary & 18 Largest Unsecured Creditors MADISON HOTEL: Senior Lenders Want to File Alternative Plan MCINTOSH BANCSHARES: Delays Filing of Quarterly Report MEDICAL CONNECTIONS: Incurs $935,000 Net Loss in Second Quarter MERCED FALLS RANCH: Files for Chapter 11 Protection in California MERIT GROUP: Centre Lane Partners Dips Into Company MIDCONTINENT COMMS: S&P Affirms 'B+' Corporate Credit Rating MILESTONE SCIENTIFIC: Incurs $298,000 Net Loss in Second Quarter NEBRASKA BOOK: NBC Delays 2nd Quarter Form 10-Q NEBRASKA BOOK: S&P Assigns 'BB-' Rating to $75-Mil. DIP Revolver NEOMEDIA TECHNOLOGIES: Incurs $55.8 Million Net Loss in Q2 NEW GENERATION: Currently Seeking Alternative Financing NEWPAGE CORP: Bondholders Bet on Lower Recovery NEWPAGE CORP: Cut by S&P to 'CCC' on Upcoming Maturities NEXTMART INC: Delays Filing of Quarterly Report on Form 10-Q NOMOTO INVESTMENTS: Files for Bankruptcy in California NORD RESOURCES: Nedbank Refuses to Extend Forbearance Agreement NORTHCORE TECHNOLOGIES: Incurs C$1.8MM Net Loss in Second Quarter NOVADEL PHARMA: Incurs $5 Million Net Loss in Second Quarter OLD CORKSCREW: Seeks to Employ McDowell Rice as General Counsel OLD CORKSCREW: Proposes Berger Singerman as Counsel OLD CORKSCREW: Taps Kapila & Co as Chief Restructuring Officer OLD CORKSCREW: Wants to Hire Arcadia Citrus as Manager OSAGE EXPLORATION: Posts $2.8-Mil. Net Income in Second Quarter OTERO COUNTY: Case Summary & 20 Largest Unsecured Creditors OXIGENE INC: Files Form 10-Q, Incurs $2.9 Million Net Loss in Q2 PAPA KENO'S: Voluntarily Dismisses Case After Reaching Deal PATIENT SAFETY: 31.2-Mil. Shares Offering Form S-1 Amended PAUL BRENNEKE: Meeting of Creditors Scheduled for Sept. 12 PENINSULA HOSPITAL: Involuntary Chapter 11 Case Summary PILGRIM'S PRICE: S&P Lowers Corporate Credit Rating to 'B' PITTSBURGH CORNING: Court to Revisit Plan Ruling in September PLATINUM STUDIOS: Delays Filing of Quarterly Report on Form 10-Q PROFESSIONAL VETERINARY: Has Until Nov. 13 to Solicit Plan Votes QUALTEQ INC: Meeting to Form Creditors Committee on Aug. 25 QUANTUM CORP: Files Form 10-Q, Incurs $5.2MM Fiscal Q1 Net Loss REAL ESTATE ASSOCIATES: Incurs $212,000 Net Loss in Second Quarter ROCK HOLDINGS: S&P Withdraws 'B' LT Counterparty Credit Rating SALON MEDIA: Incurs $678,000 Net Loss in Second Quarter SHUBH HOTELS: Unite Here Wants Settlement Agreement Enforced SIGNATURE STYLES: Court OKs Rosner as Committee's Del. Counsel SIGNATURE STYLES: Court Approves FTI as Panel's Financial Advisor SIMMONS FOODS: S&P Affirms 'B-' Corporate Credit Rating SKYSHOP LOGISTICS: Incurs $1.3 Million Net Loss in Second Quarter SMART ONLINE: Incurs $800,000 Net Loss in Second Quarter SMART POOLS: Files For Chapter 7 Bankruptcy Protection SMART-TEK SOLUTIONS: Delays Filing of Quarterly Report SOVRAN LLC: Court OKs GVA Kidder as Commercial Real Estate Broker SULPHCO INC: Reports $424,000 Net Income in Second Quarter TALON INTERNATIONAL: Reports $656,000 Net Income in Second Qtr. TAO-SAHI: Hires Jackson Walker as Counsel, Bolton as Appraiser TBS INTERNATIONAL: Incurs $15.1 Million Net Loss in Second Qtr. TELKONET INC: Reports $113,000 Net Income in Second Quarter TELVUE CORPORATION: Incurs $824,000 Net Loss in Second Quarter TERRESTAR CORP: Echostar Corp. to Get $675-Mil. from Sale TERRESTAR CORP: Seeks Court OK for Execs. Compensation Program TEXAS RANGERS: Tom Hicks Sued by Former Investors THORNBURG MORTGAGE: Countrywide, BofA Want Suit Moved to Calif. TOUSA INC: LSTA Urges Appeals Court to Preserve $500MM Loan TRADE UNION: Wants Until Oct. 1 to Solicit Plan Acceptances TRICO MARINE: Exits Bankruptcy, Assets to Be Liquidated TRIUS THERAPEUTICS: Incurs $10-Mil. Net Loss in 2nd Quarter UNI-PIXEL INC: Incurs $1.7 Million Net Loss in Second Quarter UNIGENE LABORATORIES: Incurs $8.4-Mil. Net Loss in Second Quarter UNIVERSAL SOLAR: Incurs $993,000 Net Loss in Second Quarter UPD GLOBAL RESOURCES: Owes $4.3-Mil. to PBC on Judgement URBAN WEST: Plans to Seek Dismissal, Asks for Exclusivity US FIDELIS: Robert E. Eggmann Authorized to Withdraw as Counsel UTSTARCOM INC: Posts $11.3 Million Net Income in Second Quarter VERENIUM CORP: Incurs $1.4 Million Net Loss in Second Quarter VIEW SYSTEMS: Incurs $245,000 Net Loss in Second Quarter VITESSE SEMICONDUCTOR: Posts $6.5-Mil. Net Income in June 30 Qtr. WAGSTAFF PROPERTIES: Hires Terra Properties as Real Estate Broker WARNER MUSIC: Terminates Offerings of Securities Under Plan WESTSIDE MEDICAL: Can Use Cash Collateral to Pay Fees WHITTON CORP: South Tech Wants To Use 1st Memphis Cash Collateral WHITTON CORP: Can Use GSMS Cash Collateral Through Nov. 30 YRC WORLDWIDE: S&P Reinstates CC Rating on Convertible PIK Notes ZURVITA HOLDINGS: Inks Oral Pact to Sell $1.5MM of Securities * Fed Says Banks Eased Terms Amid More Lending Competition * LBO Loan Costs Soar to Highest in 2011 on Crisis, Bond Defaults * Fitch Affirms Fannie and Freddie 'AAA' Ratings * BOOK REVIEW: Leveraged Management Buyouts ********* 155 EAST TROPICANA: Court Okays Garden City Group as Claims Agent ----------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized 155 East Tropicana LLC and 155 East Tropicana Finance Corp. to employ the Garden City Group Inc. as claims and noticing agent. The firm is expected to prepare and serve all required notices in the Chapter 11 cases, and administer and maintain claims registers on behalf of the Debtors. The Debtors told the Court that they paid $25,000 retainer fee to the firm. The Debtors assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About 155 East Tropicana 155 East Tropicana LLC owns the world's first Hooters Casino Hotel, a 696-room and 4-suite hotel located one block from the Las Vegas Strip and across Tropicana Blvd. from MGM Grand. 155 East Tropicana, along with an affiliate, sought Chapter 11 protection (Bankr. D. Nev. Case No. 11-22216) on Aug. 1, 2011. 155 East sought bankruptcy protection to stop a scheduled Aug. 8 foreclosure of the second-lien debt. The two secured credit facilities were accelerated early this year. Canpartners Realty Holding Co. IV LLC acquired 98.4% of the $130 million in 8.75% second-lien senior secured notes. An additional $32.2 million of interest is owing on the second-lien debt. US Bank NA is the indenture trustee. Holders of the $14.5 million in first-lien debt have Wells Fargo Capital Finance Inc. as their agent. The first-lien obligation is fully secured. Interest has been paid currently at the default rate. Brigid M. Higgins, Esq., at Gordon & Silver, Ltd., in Las Vegas, Nevada, serves as counsel to the Debtors. Garden City Group, Inc., is the claims agent. 155 East Tropicana estimated $50 million in assets and $100 million to $500 million in liabilities as of the Chapter 11 filing. 4KIDS ENTERTAINMENT: Posts $4.7-Mil. 2nd Quarter Net Loss --------------------------------------------------------- 4Kids Entertainment, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $4.7 million on $2.8 million of revenues for the three months ended June 30, 2011, compared with a net loss of $7.7 million on $2.9 million of revenues for the same period last year. The Company reported a net loss of $8.3 million on $6.6 million of revenues for the six months ended June 30, 2011, compared with a net loss of $12.2 million on $7.3 million of revenues for the same period last year. The Company's balance sheet at June 30, 2011, showed $20.1 million in total assets, $17.4 million in total liabilities, and stockholders' equity of $2.7 million. A copy of the Form 10-Q is available at http://is.gd/VJJx2V About 4Kids Entertainment New York-based 4Kids Entertainment, Inc., dba 4Kids, is an entertainment and media company specializing in the youth oriented market, with operations in these business segments: (i) licensing, (ii) advertising and media broadcast, and (iii) television and film production/distribution. The parent entity, 4Kids Entertainment, was organized as a New York corporation in 1970. The principal driver for filing the Chapter 11 cases is the need to protect 4Kids' most valuable asset -- its rights under an exclusive license relating to the popular Yu-Gi- Oh! ("YGO") series of animated television programs -- from efforts by the licensor, a consortium of Japanese companies, to allegedly wrongfully terminate the license and force 4Kids out of business. 4Kids Entertainment, along with affiliates, filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-11607) on April 6, 2011. Kaye Scholer LLP is the Debtors' restructuring counsel. Epiq Bankruptcy Solutions, LLC, is the Debtors' claims and notice agent. BDO Capital Advisors, LLC, is the financial advisor and investment banker. EisnerAmper LLP fka Eisner LLP serves as auditor and tax advisor. 4Kids Entertainment, Inc., disclosed $78,397,971 in assets and $86,515,395 in liabilities as of the Chapter 11 filing. On July 8, 2011, Tracy Hope Davis, the U.S. Trustee for Region 2, appointed three members to the official committee of unsecured creditors in the Chapter 11 cases of the Debtors. 765 REALTY: Albion Wins City License Renewal -------------------------------------------- Lee Hammel at Telegram & Gazette reports that the Albion, 765 Realty LLC's 68-room lodging house in Worcester, Massachusetts, was given this month a license to operate, after operating for at least seven months without one. The report relates that the commission voted in June not to renew the lodging's license. The city of Worcester sought to put the building into receivership because of a host of code violations and activity requiring police response, according to Telegram & Gazette. The report relays that the city's Property Review Team reported that there were 81 code violations issued to the Albion by Code Enforcement, which went to the property 232 times over 24 months; 407 police calls for service, and 190 calls to the Fire Department. Telegram & Gazette notes that the last hurdle was cleared after police investigated Brian Lillis' suitability to be the resident manager and "everything checked out fine." In addition to Mr. Lillis, the owners hired Michael O'Rourke, who has frequently been appointed by the Housing Court to manage troubled properties in receivership, the report notes. ABCLD HOLDINGS: Bank Lender to Get 80% Recovery in Liquidation -------------------------------------------------------------- ABCLD Holdings, LLC, said in court papers that a liquidation of its estate under Chapter 7 of the Bankruptcy Code would result in significantly less distributions to unsecured creditors and to Administrative and Priority Claimants. In the event that the Debtor's Assets were liquidated, and if a receiver or trustee were appointed to supervise the liquidation of the Debtor's Assets, there would be significant costs associated with such liquidation, and such costs would increase due to fees and charges for such persons. The Debtor said it is unlikely that the property would be sufficient to enable the Debtor or a Trustee to make any significant distribution to unsecured creditors because Administrative and Priority Claims, Secured Tax Claims, and the Armed Forces Bank's Secured Claim would consume a significant portion, if not all, of the proceeds. Consequently, the Debtor believes that it is highly unlikely that creditors other than such Claimants would receive anything or any significant payment in a Chapter 7 liquidation. The AFB is a co-proponent of the Plan. Moreover, the conversion to Chapter 7 would give rise to additional administrative expenses involved in the appointment of a trustee and attorneys and other professionals to assist the trustee. In a Chapter 7 liquidation, it is likely that general unsecured creditors would receive little distribution on their claims, and the timing of any such distribution is uncertain and would be conditioned upon the ability to liquidate the Debtor's assets in a depressed real estate market. In a liquidation analysis accompanying its joint plan of reorganization, the Debtor projects the liquidation of its two properties to be $33,289,946 in the aggregate: -- roughly 235 acres of land located in the Mercer Crossing area of Irving, Dallas County, Texas, commonly known by the street address of the Northwest corner of H635/H35, as legally described in the Mercer Crossing Deed of Trust; and -- roughly 19.43 acres of land located in the Farmers Branch area of Irving, Dallas County, Texas, commonly known by the street address of 1800 Lakeway Boulevard, as legally described in the Valwood Deed of Trust. The Debtor projects that after payment of $998,698 in liquidation expenses and $194,783 in tax claims, there will be $32,096,465 left to satisfy the AFB's claim, affording the bank an 80% recovery. Unsecured creditors are out of the money in the Debtor's liquidation scenario. The Liquidation Analysis assumes that the Mercer and Valwood Land assets are liquidated at 50% of full value as a result of current status of national economy, depressed real estate market, land lending environment and equity requirements, and to effect a quick closing. Pursuant to the Plan, AFB's claim is classified in Class 4. On the Effective Date, the Debtor will execute and deliver and will cause its parent American Realty Trust, Inc., to execute and deliver to AFB a new loan documentation in the principal amount of $40 million. AFB will retain, and to the extent necessary be granted, Liens upon the AFB Collateral and any additional Collateral referenced in the New Loan Documentation. About ABCLD Holdings 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. ALLIANCE HEALTHCARE: S&P Cuts Corporate to 'B+' on Weak Demand -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Newport Beach, Calif.-based Alliance HealthCare Services to 'B+' from 'BB- ', reflecting a deteriorating operating environment due to continued weak demand and growing competitive pressures. "In tandem with increasing business risk, and financial metrics that have been gradually declining over the past few years, we believe the company's credit profile no longer supports a 'BB-' rating," S&P said. "We are also lowering the senior secured issue-level rating to 'B+'; the recovery rating on the issue remains '3'. In addition, we have changed the senior unsecured issue-level rating to 'B-' from 'B'; the senior unsecured recovery rating remains '6'," S&P related. "Alliance's rating reflects our expectation that the company's performance will be weaker than we previously expected for the remainder of 2011, due to economic conditions and competitive pressures," said Standard & Poor's credit analyst Cheryl Richer. "Our assessment of Alliance's weak business risk profile reflects a fragmented and competitive operating environment, reimbursement risk, somewhat low barriers to entry, and the relatively high fixed-cost nature of its business. These risks overshadow a broad U.S. geographic footprint, management's ongoing adaption to changing industry dynamics, and the company's ability to capitalize on its hospital relationships. Debt leverage (gross debt adjusted for operating leases) of 4.8x for the 12 months ended June 30, 2011 is consistent with an aggressive financial risk profile. Thee company's debt leverage covenant cushion has tightened, even on a net of cash basis; Alliance is permitted to make voluntary prepayments on its bank facility." "Given our view of reasonable internal cash flow generation, and the company's intention to seek an amendment to its credit facility if necessary, we continue to view liquidity as adequate in the near term," added Ms. Richer. AMSCAN HOLDINGS: Posts $14.5 Million Net Income in Second Quarter ----------------------------------------------------------------- Amscan Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting net income of $14.57 million of total revenues for the three months ended June 30, 2011, compared with net income of $16.53 million on $357.15 million of total revenues for the same period during the prior year. The Company also reported net income of $12.08 million on $772.23 million of total revenues for the six months ended June 30, 2011, compared with net income of $16.16 million on $665.38 million of total revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $1.73 billion in total assets, $1.42 billion in total liabilities, $35.76 million in redeemable common securities, and $273.68 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/CHrJOv About Amscan Holdings Based in Road Elmsford, New York, Amscan Holdings, Inc., designs, manufactures, contracts for manufacture and distributes party goods, including paper and plastic tableware, metallic balloons, accessories, novelties, gifts and stationery. The Company also operates retail party goods and social expressions supply stores in the United States under the names Party City, Party America, The Paper Factory, Halloween USA and Factory Card & Party Outlet, and franchises both individual stores and franchise areas throughout the United States and Puerto Rico principally under the names Party City and Party America. The Company is a wholly owned subsidiary of AAH Holdings Corporation. * * * Amscan Holdings carries Standard & Poor's Ratings Services' 'B' corporate credit rating, and Moody's Investors Service's 'B2' Corporate Family and Probability of Default Ratings. As reported in the TCR on Nov. 23, 2010, S&P affirmed the 'B' rating after the Company stated that it will use the proceeds from the proposed term loan facility to pay a roughly $310 million special dividend to its equity sponsors and repay borrowings under its existing term loan facility ($342 million outstanding as of Sept. 30, 2010). "The affirmation of Amscan's credit ratings reflect S&P's view that, following payment of its debt-financed dividend payment to its equity sponsors," said Standard & Poor's credit analyst Linda Phelps, "it will have a highly leveraged financial risk profile and its financial policy has become more aggressive." ARK DEVELOPMENT: To Hire Pedro Gomez as Real Estate Appraiser ------------------------------------------------------------- Ark Development/Oceanview LLC seeks permission from the U.S. Bankruptcy Court for the Southern District of Florida to employ Pedro Gomez and 1st Realty Services, Inc. as real estate appraiser, nunc pro tunc to July 5, 2011. The Debtor submits that the firm is well qualified and able to provide the foregoing services and the Debtor has selected he firm because of the firm's experiences in appraising real property. The Debtor submits that it is necessary and essential to employ an appraiser as the value of the Debtor's real property will serve a critical component to the Debtor's Chapter 11 plan of reorganization. For the professional services to be rendered to the Debtor's estate, the firm has agreed to perform an appraisal of real property for a flat fee of $750 for the "1431 Property"; $750 for the "1427 Property"; and if an appraisal of the "1423 Property" is necessary, $750. Ark Financial Group, an insider of the Debtor, has agreed to fund the appraisal of each property. In the event the firm is required to review another appraisal performed by another appraiser, the firm has agreed to accept a flat fee of $500. Additionally, the firm has agreed to accept a flat fee of $500 if required to make a court appearance. Ark Financial has also agreed to fund the aforementioned payments in the event it is necessary. The firm will be compensated $60 per hour for any additional court appearances, which will be paid by the Debtor. The Debtor believes that the firm does not hold or represent an interest adverse to the Debtor or the bankruptcy estate. About Ark Development Ark Development/Oceanview LLC owns three pieces luxury homes in Fort Lauderdale, Florida -- at 1431 North Atlantic Boulevard; 1427 North Atlantic Boulevard; and 1423 North Atlantic Boulevard. All three properties are in the final stages of the construction process. The Debtor estimates that the value of each property is roughly $4 million. Ark Development/Oceanview filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 11-20382) on April 18, 2011. Judge John K. Olson presides over the case. It scheduled assets of $12,000,000 and debts of $9,772,531. The U.S. Trustee said it will not appoint at this time a committee of creditors for the Debtor's case. ARK DEVELOPMENT: Files Schedules of Assets & Liabilities -------------------------------------------------------- Ark Development/Oceanview LLC filed with the U.S. Bankruptcy Court for the Southern District of Florida, its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------- ----------- A. Real Property $12,000,000 B. Personal Property $17,522 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $9,969,193 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $1,825,397 ----------- ----------- TOTAL $12,017,522 $11,794,591 About Ark Development Ark Development/Oceanview LLC owns three pieces luxury homes in Fort Lauderdale, Florida -- at 1431 North Atlantic Boulevard; 1427 North Atlantic Boulevard; and 1423 North Atlantic Boulevard. All three properties are in the final stages of the construction process. The Debtor estimates that the value of each property is roughly $4 million. Ark Development/Oceanview filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 11-20382) on April 18, 2011. Judge John K. Olson presides over the case. It scheduled assets of $12,000,000 and debts of $9,772,531. The U.S. Trustee said it will not appoint at this time a committee of creditors for the Debtor's case. ARKANOVA ENERGY: Completes Horizontal Well in Cut Bank Sand ----------------------------------------------------------- Arkanova Energy Corporation announced that its subsidiary Provident Energy of Montana, LLC, successfully finished the completion of the six stage perf and frac of the Tribal-Max 1- 2817; the first successful horizontal well drilled in the Cut Bank Sand formation. In addition the company also recompleted three existing vertical wells within the Two Medicine Cut Bank Sand Unit. The Tribal-Max 1-2817 as of Aug. 8, 2011, was still flowing back at a high rate and pressure. Completion of the Tribal-Max 1-2817 included a six stage frac consisting of approximately 12,410 barrels of stimulation fluid and 474,981 pounds of sand. Three other wells within the field were also stimulated, achieving near to or exceeded design parameters. The company will update shareholders of the field production improvements as stimulation water is pumped back and oil volumes are steady. Arkanova Energy's President and CEO, Pierre Mulacek stated, "We are hopeful the results will be successful and that the success will help facilitate further development within the TMCBSU." The completion and volume results for the vertical wells and the Tribal-Max 1-2817 cannot be estimated nor confirmed at this time. About Arkanova Energy The Woodlands, Tex.-based Arkanova Energy Corporation is currently participating in oil and gas exploration activities in Arkansas, Colorado and Montana. All of Arkanova's oil and gas properties are located in the United States. The Company's balance sheet at March 31, 2011, showed $2.0 million in total assets, $13.5 million in total liabilities, and a stockholders' deficit of $11.5 million. As reported in the Troubled Company Reporter on Jan. 17, 2011, MaloneBailey, LLP, in Houston, expressed substantial doubt about Arkanova Energy's ability to continue as a going concern, following the Company's results for the fiscal year ended Sept. 30, 2010. The independent auditors noted that the Company has incurred losses since inception. AUGUSTA APARTMENTS: Trustee Taps Hire Turner & Johns as Counsel --------------------------------------------------------------- Robert L. Johns, the Chapter 11 Trustee for the bankruptcy estate of Augusta Apartments, LLC, asks the U.S. Bankruptcy Court for the Northern District of West Virginia for authority to amend its application to employ Turner & Johns, PLLC as counsel. The professional services of Turner & Johns will render are: (a) To give the Trustee advice with respect to his powers and duties and assist him as needed in his administration of the Debtor's estate; (b) To prepare on behalf of the Trustee any necessary applications, motions, reports and other pleadings; (c) To represent the Trustee at hearings on various motions, applications and proceedings; (d) To investigate and institute any proceedings relating to transactions between the Debtor and its creditors; (e) To perform accounting services related to Debtor's accounts and payrolls; and (f) To perform other legal and accounting services as necessary and appropriate in connection with the Trustee's performance of his duties. The Debtor previously employed individuals to perform the accounting functions for the Debtor. However, in December 2010, the accounting personnel were no longer employed by the Debtor. The Trustee and the Assistant U.S. Trustee have determined that it is more economically feasible for the Trustee's law firm to provide the needed accounting services. Ehe attorneys and paralegals will charge their ordinary hourly rates, which they currently are: Attorneys $175 to $360 per hour Paralegals $90 per hour. These professionals will also charge $90 to $200 per hour for providing accounting assistance. To the best of the trustee's knowledge, Turner & Johns is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Wendell B. Turner, Esq. Robert L. Johns, Esq. TURNER & JOHNS, PLLC 216 Brooks Street, Suite 200 Charleston, WV 25301 About Augusta Apartments Morgantown, West Virginia-based Augusta Apartments, LLC, filed for Chapter 11 bankruptcy protection on February 19, 2010 (Bankr. N.D. W.Va. Case No. 10-00303). Kristian E. Warner, the Company's managing member, signed the petition. The Company estimated its assets and debts at $10 million to $50 million as of the Petition Date. In July 2010, Bankruptcy Judge Patrick M. Flatney approved the appointment of Robert L. Johns as Chapter 11 trustee. A secured creditor and the U.S. Trustee sought a trustee to replace management, saying that Augusta management used funds from the apartment to pay debts of Warner family members. BANKATLANTIC BANCORP: Files Form 10-Q, Posts $23.4MM Income in Q2 ----------------------------------------------------------------- BankAtlantic Bancorp, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting net income of $23.40 million on $37.28 million of total interest income for the three months ended June 30, 2011, compared with a net loss of $51.25 million on $43.35 million of total interest income for the same period during the prior year. The Company also reported net income of $514,000 on $76.78 million of total interest income for the six months ended June 30, 2011, compared with a net loss of $71.77 million on $91.13 million of total interest income for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $3.86 billion in total assets, $3.83 billion in total liabilities, and $26.23 million in total equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/sNymi8 About BankAtlantic Bancorp BankAtlantic Bancorp (NYSE: BBX) -- http://www.BankAtlanticBancorp.com/-- is a bank holding company and the parent company of BankAtlantic. BankAtlantic -- "Florida's Most Convenient Bank" with a Web presence at http://www.BankAtlantic.com/-- has nearly $6.0 billion in assets and more than 100 stores, and is one of the largest financial institutions headquartered junior in Florida. BankAtlantic has been serving communities throughout Florida since 1952 and currently operates more than 250 conveniently located ATMs. The Company reported a net loss of $143.25 million on $176.31 million of total interest income for the year ended Dec. 31, 2010, compared with a net loss of $185.82 million on $223.59 million of total interest income during the prior year. * * * As reported by the TCR on March 1, 2011, Fitch has affirmed its current Issuer Default Ratings for BankAtlantic Bancorp and its main subsidiary, BankAtlantic FSB at 'CC'/'C' following the announcement regarding the regulatory order with the Office of Thrift Supervision. BankAtlantic has announced that it has entered into a Cease and Desist Order with the OTS at both the bank and holding company level. The regulatory order includes increased regulatory capital requirements, limits to the size of the balance sheet, no new commercial real estate lending and improvements to its credit risk and administration areas. Further, the holding company must also submit a capital plan to maintain and enhance its capital position. BARZEL INDUSTRIES: Settles R.I. Superfund Bankruptcy Claim ---------------------------------------------------------- Christopher Norton at Bankruptcy Law360 reports that Barzel Industries Inc. on Tuesday asked a judge in its Chapter 11 proceedings in Delaware to approve a settlement with the U.S. Environmental Protection Agency over contamination at a Rhode Island Superfund site. In March 2010, the U.S. filed a timely proof of claim in the bankruptcy case on the EPA's behalf, asserting damages of at least $65 million, Law360 relates. About Barzel Industries Norwood, Massachusetts-based Barzel Industries, Inc., was in the business of processing and distributing steel. The Company manufactured steel for the construction and industrial manufacturing industries, and produces finished commercial racking products. Barzel Industries -- aka Novamerican Steel Inc. and Symmetry Holdings Inc. -- and seven affiliates filed for Chapter 11 protection (Bankr. D. Del. Case No. 09-13204) on Sept. 15, 2009. Judge Christopher S. Sontchi presides over the cases. J. Kate Stickles, Esq., and Patrick J. Reilley, Esq., at Cole, Schotz, Meisel, Forman & Leonard, P.A., in Wilmington, Delaware, and Gerald H. Gline, Esq., at Cole, Schotz, Meisel, Forman & Leonard, P.A., in Hackensack, N.J., serve as the Debtors' counsel. On the same day, Barzel Industries filed applications for relief under the Canadian Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice -- Commercial List. Barzel Industries recorded assets of $370,145,000 against debts of $375,412,000 as of May 30, 2009. Barzel sold most of the assets in November 2009 for $75 million to Norwood, Massachusetts-based Chriscott USA Inc. Secured lenders agreed to a settlement later where they received a release of claims in return for giving up $800,000, including $500,000 earmarked solely for unsecured creditors. Barzel scheduled a Sept. 8 confirmation hearing for approval of the liquidating Chapter 11 plan. The disclosure statement says that unsecured creditors with $4.5 million in claims are estimated to have an 11% recovery from the carveout from the lenders' collateral. BERNARD L MADOFF: Mets Owners May Lose Millions on Ruling --------------------------------------------------------- Bloomberg News reports that investors in Bernard L. Madoff's former firm who removed more from their accounts than they invested, including the owners of the New York Mets baseball team, stand to lose from the ruling. As reported by the Troubled Company Reporter, the U.S. Court of Appeals for the Second Circuit this week affirmed the method proposed by Irving Picard, the trustee liquidating Mr. Madoff's firm, of determining which investors can recover money lost in the Ponzi scheme. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.) As of July 15, 2011, a total of US$6.88 billion in claims by investors has been allowed, with US$794.9 million to be paid by the Securities Investor Protection Corp. Investors are expected to receive additional distributions from money recovered by Mr. Picard from lawsuits or settlements. BERNARD L MADOFF: U.S. Judge to Review Anti-Class Action Suit ------------------------------------------------------------- Bloomberg News reports that U.S. District Judge Jed Rakoff said he will decide if the liquidator of Bernard Madoff's firm may stop a class-action suit against directors and advisers of feeder fund Thema International Fund Plc. Trustee Irving Picard sued the class-action plaintiffs in April, claiming they were undermining the U.S. bankruptcy court's jurisdiction over Mr. Madoff's estate. They said Mr. Picard was trying to "commandeer" their claims by suing some of the same defendants and wouldn't share any recoveries with them. The case is Picard v. Repex, 11-cv-03477, U.S. District Court, Southern District of New York (Manhattan). About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.) As of July 15, 2011, a total of US$6.88 billion in claims by investors has been allowed, with US$794.9 million to be paid by the Securities Investor Protection Corp. Investors are expected to receive additional distributions from money recovered by Mr. Picard from lawsuits or settlements. BERNARD L MADOFF: Investors Appeal Ruling Granting Picard's Fees ---------------------------------------------------------------- Carla Main at Bloomberg News reports that investors in Bernard Madoff's Ponzi scheme appealed a bankruptcy judge's order granting trustee Irving Picard and his firm $43.9 million in fees for work from Oct. 1 to Jan. 31. The appeal was filed in U.S. District Court in Manhattan yesterday by the investors' lawyer, Helen Chaitman. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.) As of July 15, 2011, a total of US$6.88 billion in claims by investors has been allowed, with US$794.9 million to be paid by the Securities Investor Protection Corp. Investors are expected to receive additional distributions from money recovered by Mr. Picard from lawsuits or settlements. BERNARD L MADOFF: Trustee Amends $2-Bil. Complaint Against UBS -------------------------------------------------------------- Roxanne Palmer at Bankruptcy Law360 reports that the trustee for Bernard L. Madoff's investment firm amended his $2 billion lawsuit Wednesday in New York against UBS AG, alleging the Swiss bank misled securities regulators in the U.S. and Luxembourg about Madoff's role in numerous international feeder funds. "Madoff did not act alone in perpetrating the largest financial fraud in history," but was aided by UBS and its affiliated entities, Bernard L. Madoff Investment Securities LLC trustee Irving H. Picard said in an amended complaint, according to Law360. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.) As of July 15, 2011, a total of US$6.88 billion in claims by investors has been allowed, with US$794.9 million to be paid by the Securities Investor Protection Corp. Investors are expected to receive additional distributions from money recovered by Mr. Picard from lawsuits or settlements. BION ENVIRONMENTAL: Granted New Patent for Phosphorus Removal ------------------------------------------------------------- Bion Environmental Technologies, Inc., has been notified by the United States Patent and Trademark Office that the patent application entitled "Micro-Electron Acceptor Phosphorus Accumulating Organisms" has been granted, according to a regulatory filing. The new patent provides enhanced protection for Bion's micro- aerobic digestion process's nutrient uptake capabilities with respect to the removal of phosphorus from livestock waste, as well as a wide range of other waste streams. The new patent strengthens Bion's patent portfolio by describing the unique ability of the technology's process to use phosphorus accumulating organisms to convert and remove phosphorus, while maintaining nitrogen removal. Bion's technology employs a biological nutrient removal process driven by the system's active microbial community that utilizes and metabolizes the waste stream to convert potential pollutants to benign forms that can then be removed from the effluent discharge stream and potentially converted into energy or other valuable by-products. With the publication of this newly granted patent, the Company's present IP portfolio includes six U.S. patents, as well as patents in Canada, New Zealand and Mexico. Two additional U.S. patents have been applied for and are pending, along with international patent applications under consideration for the European Union, Brazil, Argentina and Australia. James Morris, Ph.D., P. E., Bion's chief technology officer, stated, "The strength of Bion's patent portfolio continues to grow, this time with expanded protections for the types of microorganisms employed, as well as details on the nutrient removal quantities, by the Bion process. Bion now has in hand a very broad array of patents, many of them recently issued, which protect variations and enhancements of the core Bion process." About Bion Environmental Crestone, Colo.-based Bion Environmental Technologies, Inc. (OTC BB: BNET) -- http://biontech.com/-- has provided environmental treatment solutions to the agriculture and livestock industry since 1990. Bion's patented next-generation technology provides a unique comprehensive treatment of livestock waste that achieves substantial reductions in nitrogen and phosphorus, ammonia, greenhouse and other gases, as well as pathogens, hormones, herbicides and pesticides. As reported in the Troubled Company Reporter on September 27, 2010, GHP Horwath, P.C., in Denver, Colo., expressed substantial doubt about Bion Environmental Technologies' ability to continue as a going concern, following the Company's results for the fiscal year ended June 30, 2010. The independent auditors noted that the Company has not generated revenue and has suffered recurring losses from operations. The Company's balance sheet at March 31, 2011, showed $9.58 million in total assets, $8.72 million in total liabilities, $2.52 million in Series B Redeemable Convertible Preferred stock, and a $1.65 million total deficit. BMB MUNAI: CEO Kulumbetov Employment Agreement Terminated --------------------------------------------------------- Gamal Kulumbetov ceased being the Chief Executive Officer and Principal Executive Officer of BMB Munai, Inc., on Aug. 8, 2011, at which time his employment agreement terminated. Askar Tashtitov, the Company's President and a director will serve as the Company's Principal Executive Officer. Mr. Tashtitov has been with the Company since 2004 and has served as President since May 2006 and as a director since May 2008. Prior to joining the Company, from 2002 to 2004, Mr. Tashtitov was employed by PA Government Services, Inc. Mr. Tashtitov worked as a management consultant specializing in oil and gas projects. In May 2002, Mr. Tashtitov earned a Bachelor of Arts degree from Yale University majoring in Economics and History. Mr. Tashtitov passed the AICPA Uniform CPA Examination in 2006. Mr. Tashtitov is not, nor has he in the past five years been, a director or nominee of any other SEC registrant or registered investment company. We considered Mr. Tashtitov's detailed understanding of the Company's operations and strategic goals in concluding that he should serve as a director of the Company. Mr. Tashtitov is 32 years old. Other than in connection with his employment as the Company's President, the Company does not have any currently proposed transaction, nor has it since the beginning of its last fiscal year, engaged in any transaction with Mr. Tashtitov in an amount that exceeds the lesser of $120,000 or one percent of the average of the Company's total assets at year end for the last two completed fiscal years. The Company has entered into a separation agreement with Mr. Kulumbetov, pursuant to which the Company agreed to honor its change of control payment obligations under his former employment agreement through Nov. 14, 2011, in the event that the previously announced 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 all of its interest in Emir Oil to Palaeontol B.V., is completed in exchange for a full release of the Company or Emir-Oil LLP. 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. BRAINY BRANDS: Issues $220,000 Convertible Promissory Notes ----------------------------------------------------------- The Brainy Brands Company, Inc., entered into a subscription agreement with accredited investors. Pursuant to the agreement, on Aug. 11, 2011, the Company issued and sold to the Investors, convertible promissory notes in the aggregate principal amount of $220,000. The Notes are secured by all of the assets of the Company. The Notes are convertible into common stock of the Company at an exercise price of $0.40 per share, subject to adjustment in the event of stock splits, stock dividends, or in the event of certain subsequent issuances by the Company of common stock or securities convertible into common stock at a lower price. The Notes will mature two years from the date of issuance and bear interest at the rate of 10% per annum due and payable semi- annually in arrears commencing Sept. 30, 2011, and upon maturity. Pursuant to the Private Placement, the Company issued to the Investors warrants to purchase 30 shares of common stock for each $4.00 principal amount of Notes, such that the Company issued an aggregate of 1,650,000 Warrants. The Warrants have a five-year term, may be exercised on a cashless basis, and have an exercise price of $0.60, subject to adjustment in the event of stock splits, stock dividends, or in the event of certain subsequent issuances of the Company of common stock or securities convertible into common stock at a lower price. In connection with the Subscription Agreement, the pledge and escrow agreement, dated April 18, 2011, with the shareholders consisting of John Benfield, the Company's chief executive officer; Dennis Fedoruk, the Company's president and chief creative officer; Ronda Bush, the Company's chief operations officer; and Jerry Bush, an employee of the Company and the husband of Ronda Bush; and Grushko & Mittman, P.C., as escrow agent, pursuant to which, the Shareholders placed the aggregate 14,724,994 shares of common stock of the Company held by the Shareholders in escrow with the Escrow Agent, was terminated. Pursuant to the Pledge Agreement, the Shares were to be returned to the Shareholders if the Company were to meet the Revenue Target set forth in the Pledge Agreement, or released to the Investors if and in the proportion that the Company were to fail to meet the Revenue Target. About Brainy Brands Suwanee, Ga.-based The Brainy Brands Company, Inc., through its operating subsidiary, engages in the business of selling educational DVDs, books, games, and toys for babies, toddlers and pre-schoolers both domestically and internationally through retailers under licensing agreements, as well as directly to customers primarily via internet sales. The Company's balance sheet at March 31, 2011, showed $1.6 million in total assets, $3.6 million in total liabilities, and a stockholders' deficit of $2.0 million. Habif, Arogeti & Wynne, LLP, in Atlanta, Ga., expressed substantial doubt about The Brainy Brands' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has incurred significant operating losses and has a net capital deficiency. CADENCE INNOVATION: Judge Approves Liquidation Plan --------------------------------------------------- Lance Duroni at Bankruptcy Law360 reports that U.S. Bankruptcy Judge Kevin Gross judge gave his blessing Wednesday to Cadence Innovation LLC's liquidation plan, which settles $61.5 million in claims against the auto parts maker from two private equity funds at about half their value. According to Law360, Judge Gross signed off on the plan, saying it was the best result that could be achieved considering the financial crisis and associated tumult in the auto industry in 2008 that precipitated the bankruptcy. About Cadence Innovation Headquartered in Troy, Michigan, Cadence Innovation LLC -- http://www.cadenceinnovation.com/-- manufactures and sells auto parts to its customers GM and Chrysler. The Company had at least 4,200 employees in the United States and Europe, including Hungary and Czech Republic, prior to its bankruptcy filing. Cadence and its debtor-affiliate, New Venture Real Estate Holdings, LLC, filed for Chapter 11 reorganization (Bankr. D. Del. Lead Case No. 08-11973) on Aug. 26, 2008. Norman L. Pernick, Esq. and Patrick J. Reilley, Esq., at Cole, Schotz, Meisel, Forman & Leonard, serve as lead counsel to the Debtors. Katten Muchin Rosenman LLP is the Debtors' special corporate counsel; Butzel Long is the special automotive and litigation counsel; and Rothschild Inc. the investment banker. Kurtzman Carson Consultants LLC is the claims and notice agent. Attorneys at Clark Hill PLC, Montgomery, McCracken, Walker & Rhoads, LLP, and Womble Carlyle Sandridge & Rice, PLLC, represent the Official Committee of Unsecured Creditors. Cadence disclosed $225,217,639 in assets and $211,997,639 in liabilities as of the Chapter 11 filing. Following the bankruptcy filing, the Debtors commenced a going concern sale process. However, the buyer was unable to reach a deal with the Debtors' key customers General Motors Corp. and Chrysler LLC. In December 2008, the Debtors commenced the liquidation of their assets. The Debtors have leased their primary Chrysler facility to a party that was funded by Chrysler. The Debtors' remaining assets include cash, avoidance actions, proceeds and interests from the liquidation of its European unit and certain real property. CHARTER COMMS: Uses Low-Yielding Cash for Stock Buybacks -------------------------------------------------------- Carla Main at Bloomberg News reports that Charter Communications Inc. is buying back stock and retiring bonds as it jettisons cash earning minimal interest to reward investors. Charter plans to buy $100 million of its $1.1 billion of 8 percent senior second- lien notes that mature in April 2012 and authorized up to $200 million in share buybacks over the next 12 months, the St. Louis- based company said in an Aug. 9 filing with the Securities and Exchange Commission. If it can purchase the debt before its final two coupon payments, Charter can save about $4 million in interest. The Company, which has more borrowing relative to profit than all but one of its peers, is trying to meet a leverage target of 4 to 4.5 times debt to earnings before interest, taxes, depreciation and amortization. About Charter Communications Based in St. Louis, Missouri, Charter Communications, Inc. (Pink OTC: CHTRQ) -- http://www.charter.com/-- is a broadband communications company and the fourth-largest cable operator in the United States. Charter Communications and more than a hundred affiliates filed voluntary Chapter 11 petitions on March 27, 2009 (Bankr. S.D.N.Y. Case No. 09-11435). The Hon. James M. Peck presides over the cases. Richard M. Cieri, Esq., Paul M. Basta, Esq., and Stephen E. Hessler, Esq., at Kirkland & Ellis LLP, in New York, served as counsel to the Debtors, excluding Charter Investment Inc. Albert Togut, Esq., at Togut, Segal & Segal LLP in New York, served as Charter Investment, Inc.'s bankruptcy counsel. Charter Communications emerged from Chapter 11 under its pre- arranged Joint Plan of Reorganization, which was confirmed by the Court on Nov. 17, 2009. The Plan was declared effective Nov. 30, 2009. CHINA RENEWABLE: Incurs $59,000 Net Loss in Second Quarter ---------------------------------------------------------- China Renewable Energy Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $59,051 on $1.50 million of revenue for the three months ended June 30, 2011, compared with net profit of $122,968 on $2.78 million of revenue for the same period during the prior year. The Company also reported a net loss of $155,356 on $2.34 million of revenue for the six months ended June 30, 2011, compared with net profit of $47,848 on $3.05 million of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $954,496 in total assets, $1.43 million in total liabilities and a $474,600 total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/tOnEO4 About China Renewable Based in Wanchai, Hong Kong, China Renewable Energy Holdings, Inc., was incorporated under the laws of the State of Florida on Dec. 17, 1999. The Company was originally organized to provide business services and financing to emerging growth entities, and later redirected its business focus to market and to distribute energy-efficient products in China. De Leon & Company, P.A., in Pembroke Pines, Fla., 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 suffered recurring losses from operations, net capital deficiencies, and negative cash flows from operations. COMMONWEALTH BIOTECH: Delays 10-Q After Aussie Unit Sale -------------------------------------------------------- Commonwealth Biotechnologies, Inc., closed the sale of its Australian subsidiary, Mimotopes Pty Limited, on April 29, 2011. In order to allow sufficient time for the Company's independent public accountants to review the Company's quarterly financial statements and ensure the proper accounting of the sale of the Company's Australian subsidiary, the Company needs an extension of the prescribed time period to file its quarterly report on Form 10-Q for the three months ended June 30, 2011. The Company will file its quarterly report on Form 10-Q within the time constraints provided by Rule 12b-25 promulgated under the Securities Exchange Act of 1934, as amended. About Commonwealth Biotechnologies Based in Midlothian, Virginia, Commonwealth Biotechnologies offers cutting-edge peptide research and development products and services to the global life sciences industry. CBI now operates through its Australian subsidiary, Mimotopes, Pty Ltd. Commonwealth Biotechnologies Inc. filed for Chapter 11 bankruptcy protection (Bankr. E.D. Va. Case No. 11-30381) on Jan. 20, 2011. Judge Kevin R. Huennekens presides over the case. Paula S. Beran, Esq., at Tavenner & Beran, PLC, represents the Debtor. The Debtor estimated both assets and debts of between $1 million and $10 million. The Company's balance sheet at March 31, 2011, showed $6.21 million in total assets, $5.81 million in total liabilities and $406,020 in total stockholders' equity. CUMULUS MEDIA: Files Form 10-Q, Posts $1.3-Mil. Net Income in Q2 ---------------------------------------------------------------- Cumulus Media Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income of $1.34 million on $69.17 million of net revenues for the three months ended June 30, 2011, compared with net income of $12.30 million on $69.74 million of net revenues for the same period a year ago. The Company also reported net income of $17.46 million on $127.03 million of net revenues for the six months ended June 30, 2011, compared with net income of $12.16 million on $126.09 million of net revenues for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $367.20 million in total assets, $689.67 million in total liabilities, and a $322.47 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/3BuzCQ 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. * * * 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. DELTA AIR: S&P Gives 'BB' Rating on Series 2011-1 Class B Certs. ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB (sf)' rating to Delta Air Lines Inc.'s $102 million series 2011-1 class B pass- through certificates with an expected maturity of Oct. 15, 2014. The final legal maturity will be 18 months after the expected maturity. The issue is a drawdown under a Rule 415 shelf registration. "The certificates are secured by the same collateral as, and are subordinate to, Delta's 2011-1 class A pass-through certificates, which we rated 'A- (sf)' on April 4, 2011. The 'BB (sf)' rating is based on Delta's credit quality, adequate collateral coverage, and on legal and structural protections available to the pass-through certificates. The company will use proceeds of the offering, along with those from the class A certificates, to refinance aircraft it already owns: 10 Boeing B737-800s, 12 B757-200s, and four B767- 300ERs. The planes were originally delivered to Delta in 1995 through 2001 and currently collateralize existing pass-through certificates that will mature in September 2011. Each aircraft's secured notes are cross-collateralized and cross-defaulted -- a provision we believe increases the likelihood that Delta would affirm the notes (and thus continue to pay on the certificates) in bankruptcy," S&P related. The pass-through certificates are a form of enhanced equipment trust certificates (EETCs) and benefit from legal protections afforded under Section 1110 of the U.S. Bankruptcy Code and by a liquidity facility provided by Natixis S.A. The liquidity facility is intended to cover up to three semiannual interest payments, a period during which collateral could be repossessed and remarketed by certificate holders following any default by the airline, or to maintain continuity of interest payments as certificate holders negotiate with Delta in a bankruptcy with regard to the certificates. The rating applies to a unit consisting of certificates representing the trust property and escrow receipts, initially representing interests in deposits (the proceeds of the offerings). The escrow deposits are held by a depositary bank, The Bank of New York Mellon, pending delivery of the aircraft that Delta will refinance with the proceeds from the certificates. Amounts deposited under the escrow agreements are not the property of Delta and are not entitled to the benefits of Section 1110 of the U.S. Bankruptcy Code, and any default arising under an indenture solely by reason of the cross-default in the indenture may not be of a type required to be cured under Section 1110. Any cash collateral held as a result of the cross- collateralization of the equipment notes also would not be entitled to the benefits of Section 1110. Neither the certificates nor the escrow receipts may be separately assigned or transferred. "We believe that Delta views these planes as important and would, given the cross-collateralization and cross-default provisions, likely affirm the aircraft notes in a bankruptcy scenario. In contrast to most EETCs issued before 2009, the cross-default would take effect immediately in a bankruptcy if Delta rejected any of the aircraft notes. This should prevent Delta from selectively affirming some aircraft notes and rejecting others ('cherry- picking'), which often harms the interests of certificate holders in a bankruptcy," S&P said. "We consider the collateral pool overall to be of fairly good quality, with some aircraft models more attractive than others. The largest proportion of initial appraised value (about 48% of the appraised values that our analysis focused on) comprises B737- 800s. The B737-800 is Boeing's most popular aircraft, a midsize narrowbody plane that more than 100 airlines worldwide operate. Given the modern technology incorporated into the plane, its wide user base, and expected strong demand over the next couple of years, we consider it to be the best aircraft collateral available. Boeing Co. recently announced that it would counter competitor Airbus SAS's new engine option (NEO) for its A320 family of narrowbody planes, with a re-engined B737. We believe that the most significant effect of the introduction of the various re-engined narrowbody planes will be on values of older generation narrowbodies introduced in the 1980s: the B737-300, - 400, and -500, and the earliest versions of the A320, rather than the current-technology narrowbodies. Those earlier models are already under value pressure because they are less fuel efficient. In any case, the Delta class B pass-through certificates are scheduled to mature in 2014 (before either Airbus or Boeing introduce their new engine options), so we believe the effect on the B737-800s that partly collateralize the certificates should be minimal," S&P related. The second-largest concentration of collateral value (33%) comprises B757-200s. The B757-200 is a large narrowbody aircraft introduced in the 1980s and widely used, especially by U.S. airlines. Boeing has introduced a successor, the B737-900, but it does not have the same range as the B757-200 (which, in certain versions, can fly trans-Atlantic) and has not been widely ordered by airlines. "Still, the technology incorporated into these planes is of an older generation, and we believe that, in an industry downturn, values of this collateral could fall more materially than those of the B737-800s," S&P said. The remaining 19% of collateral value is B767-300ERs, a small widebody introduced in the 1980s. This plane has a fairly wide user base and is well suited to flying international routes that cannot support larger models. "It will eventually be superseded by the new B787, but values have been buoyed by repeated delays in the introduction of the B787. Like the B757-200, we believe that its values could be more volatile than those of the B737- 800s," S&P related. "Our analysis of the aircraft collateral, which focuses mainly on resale liquidity and technological risk, also considers the age of the aircraft, as well as the characteristics of the models. We judged that the nine- to 10-year-old B737-800 aircraft would exhibit somewhat greater potential volatility of values than the new delivery B737-800s in an airline industry downturn, and factored that into our conclusions," S&P said. The initial and maximum loan-to-value (LTV) of the class B certificates is 70.6%, using the appraised base values and depreciation assumptions in the prospectus supplement. "However, we focused on more-conservative current market values for the aircraft, based on our comparison of various base and current market value appraisals that we examined with our own internal sources of information. We used a starting collateral value of $500 million, which is 11% lower than the prospectus values. We also use more-conservative depreciation assumptions for all of the planes than those in the prospectus. We assumed that, absent cyclical fluctuations, values of the B737-800s would decline by 5% of the preceding year's value per year; the B757-200s by 8%; and the B767-300ERs 7%. Using these values and assumptions, the class B initial LTV is higher -- 78.9% -- and rises slightly to more than 80% at its highest point before declining gradually. This is an unusually high LTV for an EETC, and the three-notch uplift of the 'BB' issue rating on the class B certificates is based on our estimate of the likelihood of Delta affirming the aircraft notes that collateralize the certificates, rather than on credit for the likelihood that proceeds from the sale of repossessed aircraft could repay the class B certificates," S&P said. "Our analysis also considered that a full draw of the class A and class B liquidity facilities (plus interest on those drawdowns) constitutes a claim senior to the certificates. However, because of current low interest rates, this amount is somewhat below levels (as a percent of asset value) of many EETCs sold before 2008. Through the life of the transaction, a full draw, with interest, is equivalent initially to about 7.6% of asset value, using our assumptions, rising to slightly over 8%. The additional senior claim of the new class B liquidity facility does not have any impact on the existing 'A- (sf)' rating on the class A certificates," S&P said. Ratings List Delta Air Lines Inc. Corporate credit rating B/Stable/-- New Rating Delta Air Lines Inc. Series 2011-1 class B pass-thru certs BB (sf) E-DEBIT GLOBAL: Incurs $284,000 Net Loss in Second Quarter ---------------------------------------------------------- E-Debit Global Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $284,376 on $869,400 of total revenue for the three months ended June 30, 2011, compared with a net loss of $145,805 on $1.01 million of total revenue for the same period a year ago. The Company also reported a net loss of $513,427 on $1.67 million of total revenue for the six months ended June 30, 2011, compared with a net loss of $332,196 on $1.96 million of total revenue for the same period during the prior year. 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. The Company's balance sheet at June 30, 2011, showed $1.91 million in total assets, $2.59 million in total liabilities, and a $681,160 total stockholders' deficit. 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. A full-text copy of the Form 10-Q is available for free at: http://is.gd/OC859u 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. EASTMAN KODAK: Lazard Begins Marketing Process for Patents ---------------------------------------------------------- Dana Mattioli, writing for The Wall Street Journal, reports that a person familiar with the matter said investment bank Lazard Ltd. began marketing Eastman Kodak Co.'s patent portfolio this week, reaching out to companies that might be interested. Another person familiar with the matter told the Journal one interested company is a large, strategic buyer in the wireless industry looking to use the patents for defensive protection. The Journal says Eastman Kodak seeks to ride the bull market for patents and capitalize on its intellectual property in the booming market for tablet computers. The Journal relates speculation that Kodak could strike a lucrative deal propelled a 26% gain in the company's stock price Wednesday. Shares in Kodak rose 55 cents to $2.69 at 4 p.m. in composite trading on the New York Stock Exchange. The Journal also notes other people familiar with the sale process question the ultimate value of Kodak's patents because it has already struck numerous licensing deals with cellphone makers for some of the patents it is now putting on the auction block. There is also a concern that because of the license deals, an acquirer of the Kodak patents would be subject to lawsuits, these people added. The licensing strategy brought in $1.9 billion from 2008 to 2010, but the flow of settlements dried up this year, prompting the company to look more seriously at selling patents, one Kodak board member said, according to the Journal. Lazard declined to comment, the Journal says. Lazard also advised Nortel Networks in its own patent sale and Google Inc. in its acquisition of Motorola Mobility Holdings Inc. Wachtell, Lipton, Rosen & Katz is acting as Kodak's legal counsel. About Eastman Kodak Headquartered in Rochester, New York, Eastman Kodak Company (NYSE:EK) -- http://www.kodak.com/-- provides imaging technology products and services to the photographic and graphic communications markets. The Company's balance sheet at March 31, 2011, showed $5.88 billion in total assets, $7.15 billion in total liabilities, and a $1.27 billion total deficit. * * * As reported by the Troubled Company Reporter on March 2, 2011, Standard & Poor's Ratings Services lowered its corporate credit rating on Eastman Kodak to 'CCC' from 'B-'. S&P removed the rating from CreditWatch, where S&P placed it with negative implications on Jan. 26, 2011. The rating outlook is negative. Issue-level ratings on the company's debt were also lowered and removed from CreditWatch in conjunction with the corporate credit rating change. The 'CCC' corporate credit rating reflects S&P's expectation that Eastman Kodak's pace of cash consumption will remain high over the near term. It also reflects S&P's expectation of continued secular volume decline of the traditional photographic products and services business, that the company's consumer digital imaging businesses will not quickly turn convincingly profitable, and that intellectual property earnings, which constitute a significant portion of the company's EBITDA, could decline significantly from 2010 levels. These factors underpin S&P's view of Kodak's business risk as vulnerable and support S&P's view that revenue and EBITDA will decline in 2011. S&P views the company's financial risk profile as highly leveraged because of the risk that its earnings and cash flow could become insufficient to support its debt. According to the March 16, 2011 edition of the TCR, Fitch Ratings has affirmed its 'CCC' Issuer Default Rating on Kodak. The ratings and Negative Outlook reflect Kodak's continued struggles to gain traction in its digital businesses as secular declines persist and broaden to entertainment film within the traditional film business. In March, Moody's Investors Service demoted Kodak's corporate rating to 'Caa1' coupled with a judgment the company "could" consume $600 million to $700 million in cash during 2011. Moody's noted that Kodak has no material debt maturities until November 2013. ENERTECK CORP: Incurs $757,000 Net Loss in Second Quarter --------------------------------------------------------- Enerteck Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $757,363 on $22,544 of revenue for the three months ended June 30, 2011, compared with a net loss of $511,519 on $92,582 of revenue for the same period during the prior year. The Company also reported a net loss of $1.13 million on $46,779 of revenue for the six months ended June 30, 2011, compared with a net loss of $945,057 on $192,108 of revenue for the same period a year ago. The Company reported a net loss of $2.76 million on $231,314 of product sales for the year ended Dec. 31, 2010, compared with a net loss of $2.05 million on $404,335 of product sales during the prior year. The Company's balance sheet at June 30, 2011, showed $738,267 in total assets, $2.62 million in total liabilities, and a $1.88 million total stockholders' deficit. In addition, at the quarter ending June 30, 2011, and year ending Dec. 31, 2010, the Company has an accumulated deficit of $25,350,000 and $24,217,000 respectively. These conditions raise substantial doubt about the Company's ability to continue as a going concern. During the years ended Dec. 31, 2010, and 2009, the Company incurred recurring net losses of $2,763,000 and $2,054,000, respectively. In addition, at Dec. 31, 2010, the Company has an accumulated deficit of $24,214,474. These conditions raise substantial doubt about the Company's ability to continue as a going concern, according to the Form 10-K. The Company's continuation as a going concern is contingent upon its ability to obtain additional financing and to generate revenues and cash flow to meet its obligations on a timely basis. Management believes that sales revenues for 2010 and 2009 were considerably less than earlier anticipated primarily due to circumstances which have been corrected or are in the process of being corrected. Management expects that marine, railroad and trucking sales should show significant increases in 2011 over what has been generated in the past, as a result of the expected outcome of long term client demonstrations from several extremely large new clients will take place during 2011 and 2012. The Company has been able to generate working capital in the past through private placements and issuing promissory notes and believes that these avenues will remain available to the Company if additional financing is necessary. A full-text copy of the Form 10-Q is available for free at: http://is.gd/yFAQIp About Enerteck Corporation EnerTeck Corporation (OTC BB: ETCK.OB) -- http://www.enerteck.net/ -- was incorporated in 1935 and is based in Stafford, Texas. The Company develops, acquires and manufactures combustion enhancement, emission reduction and other performance improvement technologies for the heavy duty transportation industry. EnerTeck's flagship product, EnerBurn(TM), is a diesel fuel specific combustion catalyst, delivered to the engine via the diesel fuel, to improve the combustion rate of the fuel. ENTELOS INC: Judge Approves Auction Timeline, Lead Bid for Assets ----------------------------------------------------------------- Dow Jones' DBR Small Cap reports that Entelos Inc. won court permission Tuesday to auction itself off on Sept. 21, a means for the California company to escape pressing financial problems it encountered when major pharmaceutical companies tightened their research budgets. Entelos Inc., a developer of software for computer simulation of clinical trials for new drugs, filed for Chapter 11 protection (Bankr. D. Del. Case No. 11-12329) on July 25, 2011, in Delaware, the same day the landlord of the head office was going to court in California seeking eviction. Timothy P. Reiley, Esq., at Reed Smith LLP, in Wilmington, Delaware, serves as counsel to the Debtor. The Debtor estimated assets of up to $10 million and debts of $10 million to $50 million. EQUINIX INC: S&P Lifts CCR to 'BB-' on Continuing Strong Revenue ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Redwood City, Calif.-based Equinix Inc. to 'BB-' from 'B+'. The outlook is stable. "In addition, we raised the issue-level rating on the company's subordinated debt to 'B' from 'B-'. The issue-level rating on the company's senior unsecured debt remains 'BB-' and we revised the recovery rating to '3' from '2', per our criteria for notching unsecured debt at this rating category. Given the company's heightened ability to add incremental priority or pari passu debt prior to default, we generally cap the recovery rating on unsecured debt issued by corporate entities with corporate credit ratings of 'BB-' or higher at '3'," S&P related. "The raising of Equinix's corporate credit rating reflects the favorable operating trends experienced in the first half of 2011," said Standard & Poor's credit analyst Catherine Cosentino. Continued organic growth in customers contributed to 33.4% year over year and 8.8% sequential revenue growth for the second quarter of 2011. Such revenue growth, and the positive impacts of operating leverage, have translated into strong EBITDA growth and improved EBITDA margins; EBITDA grew by 42.5% on a year-over-year basis and 7.8% sequentially for the second quarter of 2011. Moreover, the company's overall reported EBITDA margin totaled 40.8% for the second quarter of 2011 from 38.2% a year earlier. "We assume, however, that over the remainder of 2011, the company will continue to expand its data center capacity both through internal expansion and through additional acquisitions," added Ms. Cosentino, "and therefore, will not generate net free cash flow positive results through at least the end of 2011 -- and perhaps longer, depending on expansion opportunities." "Nevertheless, the company's business risk profile, which we categorize as fair, supports the upgrade." EVERGREEN SOLAR: Has Plan Deal; Noteholders Bid for Assets ---------------------------------------------------------- On Aug. 15, 2011, the Company entered into a restructuring support agreement with certain holders of the Company's 13% Convertible Senior Secured Notes. Pursuant to the 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. The term sheet provides, among other things, that (i) the Company will undertake a marketing process and will permit parties to bid on its assets, as a whole or in groups pursuant to section 363 of the Bankruptcy Code, in which the Supporting Noteholders will serve as a "stalking-horse"and provide a "credit-bid"pursuant to section 363(k) of the Bankruptcy Code for the assets being sold; (ii) the Supporting Noteholders will support the Company's restructuring by consenting to cash collateral usage pursuant to a budget during the sale process; (iii) the Supporting Noteholders will support the costs of the Bankruptcy Case, including court approval of a plan of reorganization subsequent to the sale process; and (iv) in the event that the Supporting Noteholders' stalking horse bid is the winning bid for the Company's core wafer technology assets, the Supporting Noteholders have consented to support the development of the business with working capital based on an agreed upon budget. A copy of the Restructuring Support Agreement is available at: http://is.gd/DzaBlM A copy of the Term Sheet is available at http://is.gd/sBdKmc 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. The Marlboro, Mass.-based Company filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 11-12590) on Aug. 15, 2011, before Judge Mary F. Walrath. The Company's balance sheet at April 2, 2011, showed $373,972,000 in assets, $455,506,000 in total liabilities, and a stockholders' deficit of $81,534,000. Ronald J. Silverman, Esq., and Scott K. Seamon, Esq., at Bingham McCutchen LLP, serve as general bankruptcy counsel to the Debtor. Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as co-counsel. Zolfo Cooper LLC is the financial advisor. Epiq Bankruptcy Solutions has been tapped as claims agent. The supporting noteholders are represented by Michael S. Stainer, Esq., and Natalie E. Levine, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York. EVERGREEN SOLAR: Hearing on Sale Procedures Set for Sept. 6 ----------------------------------------------------------- The Bankruptcy Court will hold a hearing on Sept. 6 to consider approval of procedures that will govern the auction and sale of Evergreen Solar Inc.'s assets. The Court will also take a look at the hearing the Stalking Horse Asset Sale Agreement the Debtor struck with ES Purchaser LLC, the entity established by noteholders supporting the Debtor's restructuring. Objections to the sale protocol are due Aug. 30. As stalking horse bidder, ES Purchasers proposes to acquire the assets for $60 million and the assumption of certain liabilities. However, the Supporting Noteholders have agreed that they will stop bidding for the Wide Wafer Assets -- the Debtor's Core Assets -- at the auction for the Wide Wafer Assets if a third party submits an all cash bid of $30 million or greater for the Wide Wafer Assets. U.S. Bank National Association as indenture trustee, acting at the direction of holders of a majority of outstanding principal amount of the Debtor's 13% Convertible Senior Secured Notes due 2015, is entitled to credit bid some or all of the obligations owed in respect of the 13% Secured Notes for the benefit of all of the 13% Noteholders. To the extent the 13% NewCo Credit Bid is the winning bid, the equity of reorganized Evergreen Solar will be distributed to all of the holders of 13% Secured Notes in accordance with the Indenture, and NewCo will have the opportunity to retain employees relevant to Wide Wafer Technology and continue the Wide Wafer Technology business for a period of time pursuant to the terms set forth in the 13% NewCo Credit Bid. Currently, roughly $165 million in principal amount remains outstanding under the 2015 Notes. The Debtor intends to sell so-called LBIE Assets, the Devens Assets, the Core Assets and the Non-Core Assets. (A) LBIE Assets -- Lot 1 LBIE Assets refer to the Debtor's claims against Lehman Brothers International Europe and Lehman Brothers Holdings Inc. arising out of (i) the Share Lending Agreement between Lehman Brothers International (Europe) and the Debtor, dated June 26, 2008, and (ii) Guarantee of Lehman Brothers Holdings Inc. of the Share Lending Agreement between Lehman Brothers International (Europe) and the Debtor, dated June 26, 2008. The Debtor and its advisors have spoken to several parties about the sale of the LBIE Assets, but the Debtor has not yet retained a broker to assist with the marketing of the LBIE Assets nor has it solicited firm offers. There has been significant trading in LBIE claims, with many financial institutions trading in such Lehman- related claims on a daily basis and, therefore, the Debtor believes that the LBIE Assets are highly-marketable Purchased Assets which should attract multiple bidders. (B) Devens Assets -- Lot 2 Devens Assets refer to certain of the Debtor's right, title and interest under a Ground Lease, dated as of Nov. 20, 2007, between the Debtor and the Massachusetts Development Finance Agency, (ii) the buildings and all other improvements owned by the Debtor located at 114 Barnum Road, in Devens, Massachusetts, (iii) the tangible assets at the site, and (iv) relevant contracts. The Debtor first started marketing the Devens Assets following its announcement of its shutdown of operations at Devens in January 2011. In February, it hired Hilco Industrial LLC pursuant to an engagement letter dated Feb. 25, 2011. The Debtor, in consultation with Hilco, approached a number of parties likely to be interested and able to acquire the Devens Assets, including mostly strategic buyers. The Debtor had serious discussions with multiple bidders who provided draft asset purchase agreements, however, the Debtor was unable to finalize and enter into an asset purchase agreement with one of these parties. While the Debtor and each of these parties were unable to reach an agreement prepetition, the Debtor knows of no reason why they would not participate in the sales process. The Debtor plans to continue to work with these parties (and others) and hopes that they will become a Qualifying Bidder. The Debtor will continue its efforts, and seeks to employ Hilco to assist to sell the Devens Assets by re-canvassing many of the entities originally contacted, plus additional parties. The Debtor also is seeking to permission to hire Hilco Trading Inc. The Debtor hopes and expects to have a robust bidding and auction process for the Devens Assets. (C) Core Assets -- Lot 3 Core Assets include the Company's String Ribbon(TM) wafer technology business assets, Intellectual Property, and the name "Evergreen Solar" and any related derivation of the name. The Debtor and its investment banker, UBS, have put together a list of more than 80 parties who may be interested in the Core Assets. This includes both strategic and financial buyers who have operations, investments or interest in the solar sector. UBS has started preparing marketing materials for potential purchasers, which will outline the Core Assets to be sold and describe the Wide Wafer Technology. The Debtor also continues to negotiate with its Chinese joint venture partner -- Hubei Science and Technology Investment Co., Ltd., a company with limited liability organized under the laws of the Peoples Republic of China -- to ascertain whether the two parties can resolve certain issues that exist between them. The Debtor believes that this relationship could prove valuable to a potential purchaser. The Debtor has been working with UBS and its legal advisor, Bingham McCutchen LLP, to create a data room such that all relevant items that relate to the Purchased Assets will be immediately available to prospective bidders who execute a standard confidentiality agreement. (D) Non-Core Assets -- Lot 4 The Non-Core Assets include all right, title and interest of the Debtor in Cash and Cash Equivalents not related to the Wafer Business, accounts receivable, avoidance and other actions, and other assets. Over the past few months the Debtor has tried to collect on its outstanding accounts receivable and sell its remaining solar panel inventory in an attempt to monetize Non-Core Assets. As a result of these efforts, the Debtor has successfully increased its cash balance, while decreasing its accounts receivable and inventory. The Debtor believes value remains with the Non-Core Assets and that third parties, whom Hilco will seek to identify, are prepared to unlock this value and participate in the auction. Bids for any or all of the Lots are due Oct. 26, 2011. The Debtor proposes to conduct an auction at the law offices of Bingham McCutchen, LLP, at 399 Park Avenue, in New York, on Nov. 1, 2011, beginning at 10:00 a.m. The Debtor requests that the Court hold a hearing to approve a sale to the winning bidder on Nov. 4 at 1:00 p.m.(ET). Any party interested in bidding on any of the Debtor's assets should contact UBS Investment Bank for Lots 1 and 3 and Hilco Industrial LLC for Lots 2 and 4. The Debtor said buyers must commit to close a deal by Nov. 18, 2011, subject to any regulatory approvals. 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. The Marlboro, Mass.-based Company filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 11-12590) on Aug. 15, 2011, before Judge Mary F. Walrath. The Company's balance sheet at April 2, 2011, showed $373,972,000 in assets, $455,506,000 in total liabilities, and a stockholders' deficit of $81,534,000. The Debtors are represented by lawyers at Bingham McCutchen LLP and Pachulski Stang Ziehl & Jones LLP. The Debtor's financial advisors are Timothy Hughes and Alex Verba at Zolfo Cooper LLC. Epiq Bankruptcy Solutions serves as the Debtor's noticing and claims agent. The Debtor's investment bankers are: Steve Smith UBS INVESTMENT BANK 299 Park Avenue New York, NY 10171 Tel: 212-821-5222 E-mail: sd.smith@ubs.com - or - David Dolezal UBS INVESTMENT BANK 555 California Street San Francisco, CA 94104 Tel: 415-352-6086 E-mail: david.dolezal@ubs.com The Debtor's brokers is: Brian Lee HILCO INDUSTRIAL, LLC 5 Revere Drive, Suite 206 Northbrook, IL 60062 Tel: 203-258-0927 E-mail: blee@hilcobid.com 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. Pursuant to the RSA, the supporting noteholders have agreed 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. 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. U.S. Bank, the Indenture Trustee, is represented in the case by Maslon Edelman Borman & Brand, LLP. The Supporting Noteholders are represented by Akin Gump Strauss Hauer & Feld LLP. The Supporting Noteholders' financial advisors are: Brian Cullen Mark Catania DUFF & PHELPS SECURITIES, LLC 11150 Santa Monica Blvd., Suite 600 Los Angeles, CA 90025 E-mail: brian.cullen@duffandphelps.com mark.catania@duffandphelps.com EVERGREEN SOLAR: Seeks to Pay Up to $2MM in Employee Incentives --------------------------------------------------------------- Evergreen Solar Inc.'s president and CEO Michael El-Hillow may stand to receive up to $700,000 as incentive in the event the Debtor's Wide Wafer Assets are sold to a third party buyer. Other officers will also share on a bonus pot of up to $2 million depending on the final purchase price of the Wide Wafer Assets, which constitute the Debtor's core assets. Evergreen Solar is seeking permission from the Bankruptcy Court to implement a Key Employee Incentive Program. The Debtor explains that given that the ability to maximize creditor recoveries hinges, in large part, upon the consummation of a third party cash sale, the Debtor believes it is essential that key senior employees are properly motivated to ensure that they will direct maximum efforts toward enhancing estate value, without the overhang or appearance of any extrinsic, parochial considerations. Consequently, the Debtor -- at the direction of its non-executive directors, with the assistance of its outside financial professionals, and after consultation with the noteholders supporting its restructuring -- seeks approval of a narrowly tailored KEIP that will tie incentive bonuses for participants directly to the consideration received from the sale of the Wide Wafer Assets. Evergreen Solar relates that if ES Purchaser LLC -- the entity established by supporting noteholders -- wins the auction for the Wide Wafer Assets, then, subject to Court approval, the Newco will become the owner of the Wide Wafer Assets, and will be managed by members of the Debtor's existing senior management team, given their intimate knowledge of the business. It is also expected that existing rank-and-file employees relevant to the Wide Wafer Assets will join Newco. The reorganized business will then be positioned to move forward with its new business plan and a right-sized balance sheet. On the other hand, if at the conclusion of the auction, a third party's bid is deemed to be the highest and best bid for the Wide Wafer Assets, then those assets will, subject to Court approval, be sold to that third party bidder. If the third party bidder is a strategic buyer (as is likely), it may well have its own management team in place to develop and manage the Wide Wafer Assets. In that case, certain senior employees whose efforts are most required to facilitate and maximize the benefit of a third party sale, will have worked themselves out of their jobs. The KEIP, which is directly tied to the success of the Wide Wafer Assets sale process, provides for aggregate KEIP payments equal to 5% of the gross cash proceeds of a third-party sale of the Wide Wafer Assets, subject to a minimum aggregate KEIP of $1 million. Importantly, no KEIP will apply if the Stalking Horse Bid prevails. Personnel eligible for the KEIP consist of seven of the Debtor's senior employees, including several executives. The KEIP Participants must remain employed to receive any award. The aggregate KEIP amount earned, if any, will be distributed to the KEIP Participants pursuant to an allocation designed to account for each KEIP Participant's relative ability to contribute to, and affect the outcome of, the sale of the Wide Wafer Assets. As a result, the base KEIP awardable to any individual employee is not uniform among all KEIP Participants, but ranges from $75,000 to $350,000. If the Wide Wafer Assets are sold for: -- $20 million or less, total KEIP will be $1 million These officers' incentive will be: Officer % Incentive Amount ------- ----------- ------ President & CEO 35.0% $350,000 CTO 25.0% $250,000 President China 10.0% $100,000 VP R&D 7.5% $75,000 CFO 7.5% $75,000 General Counsel 7.5% $75,000 Corporate Controller 7.5% $75,000 -- $25 million, total KEIP will be $1.25 million These officers' incentive will be: Officer % Incentive Amount ------- ----------- ------ President & CEO 35.0% $437,500 CTO 25.0% $312,500 President China 10.0% $125,000 VP R&D 7.5% $93,750 CFO 7.5% $93,750 General Counsel 7.5% $93,750 Corporate Controller 7.5% $93,750 -- $30 million, total KEIP will be $1.50 million These officers' incentive will be: Officer % Incentive Amount ------- ----------- ------ President & CEO 35.0% $525,000 CTO 25.0% $375,000 President China 10.0% $150,000 VP R&D 7.5% $112,500 CFO 7.5% $112,500 General Counsel 7.5% $112,500 Corporate Controller 7.5% $112,500 -- $35 million, total KEIP will be $1.75 million These officers' incentive will be: Officer % Incentive Amount ------- ----------- ------ President & CEO 35.0% $612,500 CTO 25.0% $437,500 President China 10.0% $175,000 VP R&D 7.5% $131,250 CFO 7.5% $131,250 General Counsel 7.5% $131,250 Corporate Controller 7.5% $131,250 -- $40 million, total KEIP will be $2 million These officers' incentive will be: Officer % Incentive Amount ------- ----------- ------ President & CEO 35.0% $700,000 CTO 25.0% $500,000 President China 10.0% $200,000 VP R&D 7.5% $150,000 CFO 7.5% $150,000 General Counsel 7.5% $150,000 Corporate Controller 7.5% $150,000 Board Approved KEIP In a regulatory filing Tuesday, Evergreen Solar, Inc., discloses that on Aug. 14, 2011, the Board of Directors of the Company approved a key employee incentive plan that is supported by the holders of Company's 13% Convertible Senior Secured Notes. The key employee incentive plan will provide for an amount equal to 5% of gross cash sale proceeds from a third party for the Company's wafer business, which is all of the Company's assets necessary for the development and pursuit of the Company's business plan based on String Ribbon(TM) wafers including the Company's new industry standard sized wafer technology. The minimum amount payable under the key employee incentive plan will not be less than $1 million. Michael El-Hillow, the Company's Chief Executive Officer, will be allocated 35% of the key employee incentive plan, Dr. Lawrence Fenton, the Company's Chief Technology Officer, will be allocated 25% of the key employee incentive plan and Yeok Chan (Henry) Ng, the President of the Company's Chinese operations, will be allocated 10% of the key employee incentive plan and the remaining portion of the key employee incentive plan will be allocated to four other senior executives of the Company. Also, effective Aug. 14, 2011, Dr. Susan F. Tierney resigned as a director of the Company for personal reasons. According to the Company, there were no disagreements between Dr. Tierney and the Company regarding any matter relating to the Company's operations, policies or practices. The Board accepted Dr. Tierney's resignation and reduced the size of the Board to five so that there is no vacant Board seat to fill. 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. The Marlboro, Mass.-based Company filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 11-12590) on Aug. 15, 2011, before Judge Mary F. Walrath. The Company's balance sheet at April 2, 2011, showed $373,972,000 in assets, $455,506,000 in total liabilities, and a stockholders' deficit of $81,534,000. Ronald J. Silverman, Esq., and Scott K. Seamon, Esq., at Bingham McCutchen LLP, serve as general bankruptcy counsel to the Debtor. Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as co-counsel. Zolfo Cooper LLC is the financial advisor. Epiq Bankruptcy Solutions has been tapped as claims agent. 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. 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 11 U.S.C. Sec. 363. An entity formed by the supporting noteholders, ES Purchaser, LLC, entered into an asset purchase agreement with the Company to serve as a "stalking-horse" and provide a "credit-bid" pursuant to the Bankruptcy Code for assets being sold. The supporting noteholders are represented by Michael S. Stainer, Esq., and Natalie E. Levine, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York. EVERGREEN SOLAR: Will Not Appeal Nasdaq Delisting of Common Stock ----------------------------------------------------------------- On Aug. 15, 2011, Evergreen Solar, Inc., received a notice from The Nasdaq Listing Qualifications Staff stating that the Staff has determined that the Company's securities will be delisted from The Nasdaq Stock Market LLC. The decision was reached by the Staff under Nasdaq Listing Rules 5101, 5110(b) and IM-5101-1 following the Company's announcement on Aug. 15, 2011, that it filed a voluntary petition in the United States Bankruptcy Court for the District of Delaware seeking relief under the provisions of Chapter 11 of the Bankruptcy Code (Case No. 11-12590). As previously reported in the TCR, on July 5, 2011, the Company received a deficiency letter from Nasdaq stating that, based on the closing bid price of the Company's common stock for the last 30 consecutive business days, the Company no longer meets the minimum $1.00 per share requirement for continued listing on the Nasdaq Capital Market under Nasdaq Listing Rule 5550(a)(2). On the same date, the Company received a second deficiency letter from Nasdaq stating that the Company is no longer in compliance with Nasdaq's minimum market value requirement for continued listing on the Nasdaq Capital Market as set forth in Nasdaq Listing Rule 5550(b), which requires the Company to have a minimum market value for its listed securities of $35 million for at least 30 consecutive business days. The Company does not plan to appeal the Staff's determination to delist the Company's common stock. Accordingly, trading of the Company's common stock will be suspended at the opening of business on Aug. 24, 2011, and a Form 25-NSE will be filed with the Securities and Exchange Commission, which will remove the Company's securities from listing and registration on Nasdaq. After the Company's common stock is delisted by Nasdaq, it may trade on the OTC Bulletin Board or the Pink OTC Markets Inc., but only if at least one market maker decides to quote the Company's common stock. 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. The Marlboro, Mass.-based Company filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 11-12590) on Aug. 15, 2011, before Judge Mary F. Walrath. The Company's balance sheet at April 2, 2011, showed $373,972,000 in assets, $455,506,000 in total liabilities, and a stockholders' deficit of $81,534,000. Ronald J. Silverman, Esq., and Scott K. Seamon, Esq., at Bingham McCutchen LLP, serve as general bankruptcy counsel to the Debtor. Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as co-counsel. Zolfo Cooper LLC is the financial advisor. Epiq Bankruptcy Solutions has been tapped as claims agent. 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. 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 11 U.S.C. Sec. 363. An entity formed by the supporting noteholders, ES Purchaser, LLC, entered into an asset purchase agreement with the Company to serve as a "stalking-horse" and provide a "credit-bid" pursuant to the Bankruptcy Code for assets being sold. The supporting noteholders are represented by Michael S. Stainer, Esq., and Natalie E. Levine, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York. EVERGREEN SOLAR: Meeting to Form Committee on Aug. 26 ----------------------------------------------------- Roberta DeAngelis, United States Trustee for Region 3, will hold an organizational meeting on August 26, 2011, at 10:00 a.m. in the bankruptcy case of Evergreen Solar, Inc. The meeting will be held at: United States Trustee's Office J. Caleb Boggs Federal Building 844 King Street, Room 5209 Wilmington, DE 19801 The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' cases. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. 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. The Marlboro, Mass.-based Company filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 11-12590) on Aug. 15, 2011, before Judge Mary F. Walrath. The Company's balance sheet at April 2, 2011, showed $373,972,000 in assets, $455,506,000 in total liabilities, and a stockholders' deficit of $81,534,000. Ronald J. Silverman, Esq., and Scott K. Seamon, Esq., at Bingham McCutchen LLP, serve as general bankruptcy counsel to the Debtor. Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as co-counsel. Zolfo Cooper LLC is the financial advisor. Epiq Bankruptcy Solutions has been tapped as claims agent. 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. 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 11 U.S.C. Sec. 363. An entity formed by the supporting noteholders, ES Purchaser, LLC, entered into an asset purchase agreement with the Company to serve as a "stalking-horse" and provide a "credit-bid" pursuant to the Bankruptcy Code for assets being sold. The supporting noteholders are represented by Michael S. Stainer, Esq., and Natalie E. Levine, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York. EZENIA! INC: Incurs $1 Million Net Loss in Second Quarter --------------------------------------------------------- Ezenia! Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $1.04 million on $488,000 of product revenues for the three months ended June 30, 2011, compared with a net loss of $769,000 on $718,000 of product revenues for the same period a year ago. The Company also reported a net loss of $1.82 million on $1.16 million of product revenues for the six months ended June 30, 2011, compared with a net loss of $1.51 million on $1.42 million of product revenues for the same period during the prior year. The Company reported a net loss of $2.8 million on $2.7 million of revenue for 2010, compared with a net loss of $3.4 million on $3.5 million of revenue for 2009. The Company's balance sheet at June 30, 2011, showed $2.05 million in total assets, $3.18 million in total liabilities, and a $1.12 million total stockholders' deficit. As reported in the TCR on April 11, 2011, McGladrey & Pullen, LLP, in Boston, Mass., expressed substantial doubt about Ezenia! Inc.'s ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has had recurring losses, and negative cash flows from operations and has limited existing resources available to meet 2011 commitments. A full-text copy of the Form 10-Q is available for free at: http://is.gd/jSu30r About Ezenia! Inc. Nashua, New Hampshire-based Ezenia! Inc. (OTC BB: EZEN) -- http://www.ezenia.com/-- develops and markets products that enable organizations to provide technically advanced high-quality group communication to commercial, governmental, consumer and institutional users. FIDDLER'S CREEK: Bondholders' Request for Examiner Denied --------------------------------------------------------- Carla Main at Bloomberg News reports U.S. Bank NA's request that the bankruptcy court appoint an examiner in the Fiddler's Creek bankruptcy case was denied Aug. 16 in an order signed by U.S. Bankruptcy Judge K. Rodney May in Fort Meyers, Florida. According to the report, U.S. Bank made the motion, in its role as indentured trustee, as part of a hearing that began May 26 and lasted several days, according to the Aug. 16 order. The appointment of an examiner is "absolutely necessary" to investigate serious improprieties suspected of the debtors," U.S. Bank NA said in a court filing. U.S. Bank NA sought information on alleged financial issues relating to liens, collateral and exit financing. The bank said it discovered that "certain senior secured creditors' liens have been shifted to less valuable collateral and property." About Fiddler's Creek Fiddler's Creek, LLC, and its affiliates each owns, operates or is otherwise affiliated with the premier, fully integrated, master planned residential community known as "Fiddler's Creek" in southwestern Florida. Fiddler's Creek is located in Collier County, Florida, approximately 12 miles southeast of the city of Naples and six miles north of Marco Island. The Fiddler's Creek development is comprised of nearly 4,000 zoned acres of prime land in Naples, Florida, and is planned for and capable of accommodating up to 6,000 residences upon projected build-out, which is estimated to be in 2020. Fiddler's Creek contains five distinctive neighborhoods known as: Fiddler's Creek, Veneta, Aviamar, Marsh Cove and Meadow Run. Fiddler's Creek filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 10-03846) on Feb. 23, 2010. Paul J. Battista, Esq., Heather L. Harmon, Esq., and Mariaelena Gayo-Guitian, Esq., at Genovese Joblove & Battista, P.A., Miami; Bart A. Houston, Esq., at Kopelowitz Ostrow; and Mark Woodward, Esq., serve as counsel to the Debtors. Judge Alexander L. Paskay presides over the case. The Company estimated assets and debts at $100 million to $500 million. Paul S. Singerman, Esq., Jordi Guso, Esq., and Debi Evans Galler, Esq., at Berger Singerman P.A., represent the Official Unsecured Creditors Committee as counsel. FOREST OIL: S&P Lowers Senior Unsecured Debt Ratings to 'B' ----------------------------------------------------------- Standard & Poor's Ratings Services lowered its senior unsecured debt ratings on Denver-based Forest Oil Corp. to 'B' (two notches lower than the corporate credit rating) from 'BB-'. Standard & Poor's also revised its recovery rating on these issues to '6', indicating its expectation of negligible recovery (0% to 10%) in the event of a payment default, from '4'. "At the same time, we assigned our 'BB+' issue rating and a '1' recovery rating to Forest's senior secured debt, indicating our expectation of very high recovery (90% to 100%) in the event of a payment default," S&P said. The rating actions reflect Forest's spin-off and IPO of its Canadian assets (Lone Pine) and the resulting lower recovery prospects for senior unsecured lenders because of a reduction in Forest's asset value. Forest intends to use the net proceeds from the spin-off and Lone Pine's payment of intercompany debt, which will total about $400 million, to pay off $285 million of unsecured debt that matures later this year and to help fund its drilling program. The corporate credit rating on Forest Oil, an oil and gas exploration and production (E&P) company, reflects the capital- intensive and cyclical nature of the E&P industry and a production mix that is heavily weighted toward weak natural gas prices. Ratings also reflect the company's good liquidity, onshore geographic diversity, and the relatively low-risk nature of its drilling program. For the complete credit rating rationale, see S&P's summary analysis on Forest published March 2, 2011. Ratings List Forest Oil Corp. Corporate credit rating BB-/Stable/-- Issue Ratings Lowered; Recovery Ratings Revised To From Senior unsecured debt B BB- Recovery rating 6 4 New Ratings Senior secured debt BB+ Recovery rating 1 GENERAL MOTORS: Says Bankruptcy Bars Impala Warranty Suit --------------------------------------------------------- Ian Thoms at Bankruptcy Law360 reports that General Motors Co. is seeking to nix a proposed class action in Michigan federal court alleging it violated a warranty when it failed to fix a defect in the Chevrolet Impala, arguing in an Aug. 11 motion that the allegations pertain to prebankruptcy GM, not the current company. Identifying itself as New GM, Law360 relates, the Company said it did not assume responsibility or liability for Old GM design choices, conduct or breaches of liability. About General Motors With its global headquarters in Detroit, Michigan, General Motors Company (NYSE:GM, TSX: GMM) -- http://www.gm.com/-- is one of the world's largest automakers, traces its roots back to 1908. GM employs 208,000 people in every major region of the world and does business in more than 120 countries. GM and its strategic partners produce cars and trucks in 30 countries, and sell and service these vehicles through the following brands: Baojun, Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall, and Wuling. GM's largest national market is China, followed by the United States, Brazil, the United Kingdom, Germany, Canada, and Italy. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Co. was formed to acquire the operations of General Motors Corp. through a sale under 11 U.S.C. Sec. 363 following Old GM's bankruptcy filing. The U.S. government once owned as much as 60.8% stake in New GM on account of the financing it provided to the bankrupt entity. The deal was closed July 10, 2009, and Old GM changed its name to Motors Liquidation Co. New GM has a 'BB-' corporate credit rating from Standard & Poor's and a 'BB-' issuer default rating from Fitch. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on June 1, 2009. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Garden City Group is the claims and notice agent of the Debtors. The U.S. Trustee has appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP serve as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long serve as counsel regarding supplier contract matters. FTI Consulting, Inc., serves as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represents the Asbestos Committee. Legal Analysis Systems, Inc., serves as asbestos valuation analyst. The Bankruptcy Court entered an order confirming the Debtors' Second Amended Joint Chapter 11 Plan on March 29, 2011. The Plan was declared effect on March 31. GLOBAL AVIATION: Cut by S&P to 'CCC+' on Deferred Interest Payment ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered its corporate credit rating on Peachtree City, Ga.-based Global Aviation Holdings Inc. to 'CCC+' from 'B'. "We also lowered our issue-level rating on the company's first-lien secured debt to 'B' from 'BB-'; the notes are being co-issued by the company's two airline subsidiaries, World Airways Inc. and North American Airlines Inc. At the same time, we have placed all ratings on CreditWatch with negative implications," S&P said. "We placed our ratings on Global Aviation on CreditWatch with negative implications following the company's announcement that it's deferring the interest payment on its first-lien debt and using the 30-day grace period to negotiate covenant relief," said Standard & Poor's credit analyst Lisa Jenkins. "The company was in compliance with covenants in the second quarter ended June 30, 2011, but expects to be out of compliance in the third quarter absent covenant relief and success with other cost-cutting initiatives. The interest payment was due on Aug. 15, 2011." "Our ratings on Global Aviation reflect its participation in the cyclical, competitive, and capital-intensive heavy airfreight business; its highly leveraged capital structure; and concerns regarding covenant compliance, which we believe results in a current weak liquidity position. We characterize Global Aviation's business risk profile as weak and its financial risk profile as highly leveraged," S&P related. Earnings and cash flow this year have been adversely affected by reduced pricing on the military business, higher capital expenditures, and lower-than-expected flying in both the military and commercial business. "We will monitor the status of negotiations with lenders and the company's cost-cutting initiatives," Ms. Jenkins continued. "We would likely lower the ratings further if we believe Global Aviation will not make its interest payment within the grace period or if we believe the company will violate its covenants." GRAHAM PACKAGING: Reports $33.5-Mil. Net Income in 2nd Quarter -------------------------------------------------------------- Graham Packaging Holdings Company filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income of $33.58 million on $821.23 million of net sales for the three months ended June 30, 2011, compared with net income of $46.51 million on $652.83 million of net sales for the same period during the prior year. The Company also reported net income of $48.31 million on $1.57 billion of net sales for the six months ended June 30, 2011, compared with net income of $25.72 million on $1.23 billion of net sales for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $2.94 billion in total assets, $3.41 billion in total liabilities, and a $470.55 million total partners' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/YN6h12 About Graham Packaging Headquartered in York, Pennsylvania, Graham Packaging Holdings Company, -- http://www.grahampackaging.com/-- the parent company of Graham Packaging Company, L.P., is engaged in the design, manufacture and sale of customized blow molded plastic containers for the branded food and beverage, household, automotive lubricants and personal care/specialty product categories. As of the end of June 2008, the company operated 83 manufacturing facilities throughout North America, Europe and South America. * * * In June 2011, Fitch Ratings revised the Rating Watch status on Graham Packaging Company, L.P.'s and its subsidiary, GPC Capital Corp.'s 'B' Issuer Default Rating and the long-term debt ratings to Negative from Positive. The rating action follows Graham's announcement that the company has signed a definitive merger agreement, and an amendment thereto, under which Graham would be acquired by Reynolds Group Holdings Limited in an all-cash transaction for $25.50 per share. The transaction is valued at approximately $4.5 billion including assumed indebtedness. The deal is expected to close in the second half of this year. Fitch notes Graham's credit agreement contains triggers that allow lenders to declare an event of default and elect to declare all borrowings due and payable in the event of a party acquiring beneficial ownership. The debt indentures also contain a change of control covenant that requires the company to repurchase all outstanding notes at 101% of their principal amount plus accrued and unpaid interest. GREAT ATLANTIC: Reaches Deal With OfficeMax Over Executive Hiring ----------------------------------------------------------------- Carla Main at Bloomberg News reports that Great Atlantic & Pacific Tea Co. settled OfficeMax Inc.'s lawsuit accusing the bankrupt supermarket operator of hiring away OfficeMax executives. The agreement ends litigation between the companies and allows A&P to focus on its restructuring, A&P said in an Aug. 12 bankruptcy court filing. Terms of the settlement are confidential. OfficeMax, based in Naperville, Illinois, sued A&P, its Chief Executive Officer Sam Martin and two other executives last year. The office-supply company said Martin left to join A&P and improperly recruited the other two executives in violation of agreements with OfficeMax. About Great Atlantic & Pacific Founded in 1859, Montvale, New Jersey-based Great Atlantic & Pacific is a supermarket retailer, operating under a variety of well-known trade names, or "banners" across the mid-Atlantic and Northeastern United States. Before filing for bankruptcy in 2010, A&P operated 429 stores in 8 states and the District of Columbia under the following trade names: A&P, Waldbaum's, Pathmark, Pathmark Sav-a-Center, Best Cellars, The Food Emporium, Super Foodmart, Super Fresh and Food Basics. A&P had 41,000 employees prior to the bankruptcy filing. A&P and its affiliates filed Chapter 11 petitions (Bankr. S.D.N.Y. Case No. 10-24549) on Dec. 12, 2010 in White Plains, New York. In its petition, A&P reported total assets of $2.5 billion and liabilities of $3.2 billion as of Sept. 11, 2010. Paul M. Basta, Esq., James H.M. Sprayregen, Esq., and Ray C. Schrock, Esq., at Kirkland & Ellis, LLP, in New York, and James J. Mazza, Jr., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, serve as counsel to the Debtors. Kurtzman Carson Consultants LLC is the claims and notice agent. Lazard Freres & Co. LLC is the financial advisor. Huron Consulting Group is the management consultant. Dennis F. Dunne, Esq., Matthew S. Barr, Esq., and Abhilash M. Raval, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represent the Official Committee of Unsecured Creditors. A&P obtained court approval for a new contract with C&S Wholesale Grocers Inc., its principal supplier. The contract is designed to save A&P $50 million a year when the supermarket operator emerges from Chapter 11 reorganization. A&P sold postpetition 12 Super-Fresh stores in the Baltimore- Washington area for $37.83 million, plus the value of inventory. Thirteen other locations didn't attract buyers at auction and were closed mid-July 2011. HARVEST OAKS: Files 2nd Amended Plan; CSMC to be Paid Over Time --------------------------------------------------------------- On Aug. 12, 2011, Harvest Oaks Drive Associates, LLC, filed a Second Amended Disclosure Statement and Second Amended Plan of Reorganization with the U.S. Bankruptcy Court for the Eastern District of North Carolina. The Plan contemplates a reorganization and continuation of the Debtor's business. Certain creditor claims will be satisfied from income earned through the continued operations of the Debtor's business. The Plan designates these classes of claims and interests: Class Status ----- ------ 1. Administrative Costs Impaired 2. Ad Valorem Taxes Unimpaired 3. Tax Claims Unimpaired 4. CSMS 2006-C5 Strickland Road Impaired 5. CSMS Deficiency Claim Impaired 6. Tenant Leases Unimpaired 7. Pitney Bowes Lease Unimpaired 8. General Unsecured Claims Impaired 9. Subordinated Claims Impaired 10. Equity Security Holders Unimpaired Administrative costs will be paid in cash within 10 days from the Effective Date of the Plan, subject to availability of funds. The 2010 Property Taxes owed to the Wake County Revenue Department in the amount of $155,635.30 in Class 2 were paid on Dec. 29, 2010. The Debtor is unaware of any claims in Class 3. CSMC's secured claim in Class 4 will be treated as a secured obligation in an amount to be determined by the Court. For feasibility purposes, the Debtor has estimated that CSMC will have a secured claim in the amount of $14,036,705.54 in Alternative A and $11,700,000 in Alternative B as shown on Exhibit D to the Disclosure Statement. The Debtor and CSMC will enter into a lock box cash management agreement whereby all rents and security deposits received after the Effective Date will be deposited into designated accounts maintained by CSMC for disbursement as described in the Plan. During the time in which the lockbox arrangement is in place, CSMC will be paid interest only payments for the first 12 months, and thereafter in 72 monthly payments of principal and interest (based on a 30 year amortization schedule), with one final payment on the 72nd month. The CSMC Deficiency Claim in Class 5, if a deficiency is found to exist, will receive the same treatment as in Class 4. General Unsecured Claims in Class 8, estimated at $42,008, will be paid in full, with quarterly payments commencing 18 months after the Effective Date and continuing quarterly thereafter for a period of 5 years. Class 6 Subordinated Claims (unsecured claims of insiders), estimated at $2,569,353, will not receive any payments until all Class 8 General Unsecured Claims are paid in full, at which time the Debtor may pay these claims as agreed by between the parties. Equity claims of Max Barbour (99%) and Cheryl Barbour (1%) will retain their ownership interests. Copies of the Second Amended Plan and Second Amended Disclosure Statement are available at: http://bankrupt.com/misc/harvestoaks.2ndamendedplan.pdf http://bankrupt.com/misc/harvestoak.2ndamendedDS.pdf Plan Confirmation Objection CSMC, acting through its special servicer, LNR Partners, LLC, objected to the First Amended Disclosure Statement accompanying the First Amended Plan of Reorganization filed on May 16, 2011, because it fails to provide "adequate information" within the meaning of Section 1125 of the Bankruptcy Code. Among other things, CSMC says the Amended Disclosure Statement fails to explain adequately how the Amended Plan will treat its secured claim. CSMC also objected to the confirmation of the First Amended Plan. Some of the grounds CSMC cited are: a. The Amended Plan violates Section 1129(a)(1), which among other things, requires that a plan only place substantially similar claims in the same class. b. The Amended Plan violates Section 1129(a)(1) in that it does not comply with Sections 506(a), 1111(b) or 1123(a) with respect to classifying and treating the unsecured deficiency claim that Lender will have if it does not elect under Section 1111(b)(2) to have its claim treated as secured only. c. The Amended Plan violates Section 1129(a)(1) in that it does not comply with Section 1123(a)(5), which requires the Amended Plan to provide adequate means for implementation. d. The Amended Plan violates section 1129(a)(1) in that violates Sections 506 and 1129(b) by proposing to reduce Lender's allowed claim by the total adequate protection paid through the Effective Date regardless of whether and by how much the Lender is undersecured as of the Effective Date. e. The Amended Plan violates sections 1129(a)(1) and 1129(a)(3) insofar as it violates section 524(e) by purporting to enjoin Lender from commencing any action against, or recovering in any manner from, its guarantor Max Barbour or any other person. f. The Amended Plan violates section 1129(a)(3) in that it proposes in bad faith that all avoidance actions will be preserved for the benefit of the estate. Lender's Rule 2004 examination of Max Barbour suggests that the estate has substantial preference and fraudulent transfer actions, but they are against Mr. Barbour, is wife and other insider companies owned in whole or substantial part by Mr. Barbour. CSMC says further that the Amended Plan violates the absolute priority rule by allowing the Barbours to retain their equity interests while unsecured creditors receive less than the full amount of their allowed claims as of the effective date. CSMC is represented by: William B. Sullivan, Esq. WOMBLE CARLYLE SANDRIDGE & RICE, PLLC One West Fourth Street Winston-Salem, NC 27101 Tel: (336) 721-3506 Fax: (336) 733-8365 About Harvest Oaks Harvest Oaks Drive Associates, LLC, owns a shopping center in North Raleigh located at 9650 Strickland Road and 8801 Lead Mine Road, in Raleigh, North Carolina. The Shopping Center has numerous tenants that include chain stores such as the Kerr Drug and the UPS store, and local businesses such as restaurants, shops, and other retail businesses. The Company filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.C. Case No. 10-03145) on April 21, 2010. Trawick H Stubbs, Jr., Esq., at Stubbs & Perdue, P.A., assists the Company in its restructuring effort. In its schedules, the Company disclosed $15,832,000 in assets and $14,634,161 in debts HASSEN IMPORTS: Files Schedules of Assets and Liabilities --------------------------------------------------------- Hassen Imports Partnership filed with the U.S. Bankruptcy Court for the Central District of California its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $9,238,486 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $32,540,253 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $4,406,423 ----------- ----------- TOTAL $9,238,486 $37,555,776 Hassen Imports Partnership filed a Chapter 11 petition (Bankr. C.D. Calif. Case No. 11-42068) in Los Angeles, California, on July 27, 2011. Marina Fineman, Esq., at Stutman Treister & Glatt, serves as counsel to the Debtor. HILLSIDE VALLEY: Wants to Hire Regional Capital as Financial Agent ------------------------------------------------------------------ Hillside Valley, L.P., asks the U.S. Bankruptcy Court for the Eastern District of Pennsylvania for authorization to employ Regional Capital Group as its financial agent effective as of Aug. 1, 2011. The Debtor requires the services of a financial agent to secure debt, equity or another form of satisfactory financing source, as the Debtor has been unable to obtain any such financing sources through its own efforts or its existing lender. The Debtor proposes to compensate Regional Capital Group in the amount of 2% of the total funding amount committed by the financing source, subject to prior application to and approval by the Court. Michael Young, Senior Associate of Regional Capital Group, submits that Regional Capital Group is disinterested within the meaning of Section 101(14) of the Bankruptcy Code and that Regional Capital neither holds nor represents any interest adverse to the estate. The firm can be reached at: Michael Young REGIONAL CAPITAL GROUP 701 Route 70 East, Building One Marlton, NJ 08053 Tel: (856) 983-4800 Fax: (856) 983-5001 Watchung, New Jersey-based Hillside Valley, L.P. filed for Chapter 11 protection (Bankr. E.D. Penn. Case No. 11-21689) on June 23, 2011. Bankruptcy Judge Richard E. Fehling presides over the case. Fitzpatrick Lentz & Bubba, P.C., represents the Debtor as counsel. The Debtor estimated assets and debts at $10 million to $50 million. HUDSON HEALTHCARE: Hiring Trenk DiPasquale as Bankruptcy Counsel ---------------------------------------------------------------- Hudson Healthcare, Inc., seeks the Court's authority to employ Trenk, DiPasquale, Webster, Della Fera & Sodono, P.C., as bankruptcy counsel. Joseph J. DiPasquale, Esq., a partner and shareholder at the firm, attests that Trenk DiPasquale does not hold or represent any interest adverse to the Debtor, its creditors or the Debtor's estate, and is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Trenk DiPasquale received $179,512.75 before the filing of the petition on Aug. 1, 2011, in payment of an invoice for fees and expenses incurred for the month of July 2011. Trenk DiPasquale maintains a retainer of $108,043.90 to secure its fees and expenses from and after Aug. 1, 2011. Trenk DiPasquale will be rendering services on an hourly basis. The current range of hourly rates, not inclusive of 10% reduction, is: Partners $325 - $550 Associates $195 - $290 Law Clerks $185 Paralegals $180 - $190 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. Affiliate Hoboken Municipal Hospital Authority also sought Chapter 11 protection. Judge Donald H. Steckroth presides over the cases. Epiq Bankruptcy Solutions, LLC, serves as noticing and claims agent. The Debtor's bankruptcy counsel may be reached at: Joseph J. DiPasquale, Esq. Thomas M. Walsh, Esq. TRENK, DiPASQUALE, WEBSTER, DELLA FERA & SODONO, P.C. 347 Mount Pleasant Avenue West Orange, New Jersey 07052 Tel: (973) 243-8600 E-mail: jdipasquale@trenklawfirm.com In August 2011, the New Jersey Health Planning Board voted to recommend to the Commissioner of Health to approve the sale of Hoboken University Medical Center to HUMC Holdco, a private group that also owns Bayonne Medical Center. Holdco has pledged to maintain it as a hospital for at least seven years. The proposed transaction totals $91.7 million, including a $51.6 million cash payment to extinguish Hobokens' bond guarantee. The new owners have pledged to put $20 million in capital improvements in the hospital. HUDSON HEALTHCARE: Has Green Light to Tap Epiq as Claims Agent -------------------------------------------------------------- Hudson Healthcare, Inc., sought and obtained the Bankruptcy Court's authority to employ Epiq Bankruptcy Solutions, LLC, as its claims, noticing and solicitation agent. The Debtor has paid Epiq a $25,000 retainer. Epiq attests that it is a "disinterested person" as that term is defined in Sec. 101(14) of the Bankruptcy Code. 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. Affiliate Hoboken Municipal Hospital Authority also sought Chapter 11 protection. Judge Donald H. Steckroth presides over the cases. Attorneys at Trenk, Dipasquale, Webster, et al., serve as counsel to the Debtor. Epiq Bankruptcy Solutions, LLC, the noticing and claims agent, may be reached at: Ron Jacobs EPIQ BANKRUPTCY SOLUTIONS, LLC 757 Third Ave., Ste. 304 New York, NY 10017 Tel: 646-282-2550 E-mail: rjacobs@epiqsystems.com In August 2011, the New Jersey Health Planning Board voted to recommend to the Commissioner of Health to approve the sale of Hoboken University Medical Center to HUMC Holdco, a private group that also owns Bayonne Medical Center. Holdco has pledged to maintain it as a hospital for at least seven years. The proposed transaction totals $91.7 million, including a $51.6 million cash payment to extinguish Hobokens' bond guarantee. The new owners have pledged to put $20 million in capital improvements in the hospital. HUDSON HEALTHCARE: Sec. 341 Creditors' Meeting Set for Aug. 31 -------------------------------------------------------------- The United States Trustee for Region 3 will convene a meeting of creditors pursuant to Sec. 341(a) of the Bankruptcy Code in the chapter 11 case of Hudson Healthcare, Inc., on Aug. 31, 2011, at 9:00 a.m. at The Office of the U.S. Trustee, 1085 Raymond Blvd., One Newark Center, Suite 1401, in Newark, New Jersey. The debtor's representative must be present at the meeting to be questioned under oath by the trustee and by creditors. Creditors are welcome to attend, but are not required to do so. The meeting may be continued and concluded at a later date without further notice. The court, after notice and a hearing, may order that the United States trustee not convene the meeting if the debtor has filed a plan for which the debtor solicited acceptances before filing the case. Proofs of claim are due by Nov. 29, 2011. 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. Affiliate Hoboken Municipal Hospital Authority also sought Chapter 11 protection. Judge Donald H. Steckroth presides over the cases. Attorneys at Trenk, Dipasquale, Webster, et al., serve as counsel to the Debtor. Epiq Bankruptcy Solutions, LLC, serves as noticing and claims agent. In August 2011, the New Jersey Health Planning Board voted to recommend to the Commissioner of Health to approve the sale of Hoboken University Medical Center to HUMC Holdco, a private group that also owns Bayonne Medical Center. Holdco has pledged to maintain it as a hospital for at least seven years. The proposed transaction totals $91.7 million, including a $51.6 million cash payment to extinguish Hobokens' bond guarantee. The new owners have pledged to put $20 million in capital improvements in the hospital. HUDSON HEALTHCARE: Status Conference Scheduled for Oct. 3 --------------------------------------------------------- The Bankruptcy Court will convene a Status Conference in the Chapter 11 case of Hudson Healthcare, Inc., on Oct. 3, 2011, at 2:00 p.m. at DHS - Courtroom 3B, in Newark. 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. Affiliate Hoboken Municipal Hospital Authority also sought Chapter 11 protection. Judge Donald H. Steckroth presides over the cases. Attorneys at Trenk, Dipasquale, Webster, et al., serve as counsel to the Debtor. Epiq Bankruptcy Solutions, LLC, serves as noticing and claims agent. In August 2011, the New Jersey Health Planning Board voted to recommend to the Commissioner of Health to approve the sale of Hoboken University Medical Center to HUMC Holdco, a private group that also owns Bayonne Medical Center. Holdco has pledged to maintain it as a hospital for at least seven years. The proposed transaction totals $91.7 million, including a $51.6 million cash payment to extinguish Hobokens' bond guarantee. The new owners have pledged to put $20 million in capital improvements in the hospital. HUDSON HEALTHCARE: Council to Vote on Okin Hollander Retention -------------------------------------------------------------- Patch.com's Hoboken subsite reports that Hoboken, New Jersey Mayor Dawn Zimmer has called for a special meeting during which the city council will approve a contract with law firm Okin, Hollander & DeLuca to represent the city in bankruptcy proceedings with Hudson Healthcare, Inc. HHI owes the city almost $2 million; $1 million to the parking authority and another $903,000 to the city. The lawyer from Okin, Hollander & DeLuca will be present to explain the settlement between the city and HHI. 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. HWI GLOBAL: Inks Forbearance Pact with Primary Secured Lender ------------------------------------------------------------- A primary secured lender recently notified HWI Global, Inc., that its line of credit facility, which matured on March 26, 2011, was in default and demanded payment in full. As of June 30, 2011, the amount due was $526,961. HWI entered into a forbearance agreement with this lender which restructures the repayment obligations to require repayment of the outstanding amounts over the balance of 2011 and into the beginning of 2012. The Company does not currently have sufficient cash to satisfy these repayment obligations, but does believe that cash flow from operations and cash proceeds from the sale of equity securities expected in the future will be sufficient to make the payments when due. About HWI Global, Inc. HWI Global, Inc., is a leader in clean room design engineering and construction servicing clients in the Life Science, Health Science, Nanotechnology, Microelectronics, and Aerospace industries. Since its incorporation in 2004, HWI Global has effectively constructed classified facilities for R&D, food & beverage, contract manufacturers, and OEM providers. From low volume sterile compounding to high volume manufacturing and packaging applications, HWI Global provides value-engineered solutions for any custom clean room condition. HWI Global and its network of subject matter experts - from leading architects, engineers, facilities planners, and specialized installers - effectively design and construct state-of-the-art clean environments in a "turnkey" fashion. For more information, please visit our Web site at http://www.hwicleanrooms.com/ INSIGHT COMMUNICATIONS: S&P Puts 'B-' Rating $495-Mil. Sr. Notes ---------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B-' issue-level rating on Insight Communications Co. Inc.'s $495 million senior notes due 2018 on CreditWatch with positive implications. The CreditWatch placement follows Time Warner Cable Inc.'s (TWC; BBB/Stable/A-2) announcement that it would acquire Insight for $3 billion. The companies expect the transaction to close in the first half of 2012. "The CreditWatch reflects the possibility that TWC may assume the notes rather than immediately refinance them following completion of the acquisition. In such a scenario, we would expect to raise the issue-level rating on the notes to 'BBB', reflecting the consolidated creditworthiness of TWC," S&P said. Insight's 'B+' corporate credit rating and the 'B+' issue-level rating on its senior secured credit facility at subsidiary Insight Midwest Holdings LLC are unaffected. "We expect TWC to repay the $1.2 billion outstanding under the credit facility shortly after the acquisition closes, at which time we would withdraw the corporate credit rating and credit facility issue rating," S&P stated. Ratings List Insight Communications Co. Inc. Corporate Credit Rating B+/Stable/-- Ratings Placed On CreditWatch Positive Insight Communications Co. Inc. Senior Secured B-/Watch Pos Recovery Rating 6 INTERFACE INC: S&P Raises Corporate Credit Rating to 'BB' --------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit ratings on Atlanta, Ga.-based Interface Inc. to 'BB' from 'B+'. All ratings were removed from CreditWatch, where they were placed with positive implications on May 11, 2011. The rating outlook is stable. "At the same time, we raised our issue-level ratings on the company's $275 million senior unsecured notes to 'BB' (the same as the corporate credit rating) from 'B+'. The recovery rating on these notes remains unchanged at '3', indicating our expectation for meaningful (50% to 70%) recovery in the event of payment default," S&P related. "The upgrade reflects Interface's improving financial risk profile following steadily reduced debt levels and stronger earnings growth," said Standard & Poor's credit analyst Megan Johnston. The company's total adjusted debt (including adjustments for pensions and operating leases) as of July 3, 2011 was about $360 million, compared with about $390 million at year-end 2009. Over that period, adjusted EBITDA has increased by nearly 60% to about $160 million as of July 3, 2011, due to increased demand from the company's key corporate office market, as well as from initiatives to penetrate noncorporate segments as well as new geographies. "As a result, we estimate the company's adjusted debt to EBITDA has strengthened to about 2.2x and funds from operations (FFO) to debt has improved to about 30%, which we consider to be line with a significant financial risk profile and the 'BB' rating," S&P related. "The upgrade also reflects our expectation that Interface's operating performance in 2011 and 2012 will be buoyed by its exposure to international markets as well as its diversification away from its key corporate office segment. As of the end of 2010, nearly 50% of Interface's sales were generated from outside of the U.S. Within the U.S., more than half of sales were derived from noncorporate segments, including education, health care, hospitality, and retail. This diversification has led to less volatile revenues and stronger margins. As of July 3, 2011, EBITDA margins were about 15.5%, up from 13% in the prior year," S&P related. The ratings on Interface also reflect the company's approximate 35% market share in the worldwide modular carpet segment, which has been growing faster than the rest of the floor covering market over the past decade. In addition, approximately 90% of sales are tied to the replacement and remodeling market, which has traditionally been less cyclical than the new construction market. "However, Interface's markets are also highly competitive. As a result, we view the company's business risk profile as fair," S&P said. Interface Inc. is one of the leading manufacturers in the worldwide modular carpet segment. The company sells carpeting in 110 countries under the brand names InterfaceFLOR, FLOR, Heuga, and Bentley Prince Street. The company is estimated to be the third-largest producer of carpeting worldwide, behind competitors Shaw Floors (unrated) and Mohawk Industries Inc. (BB+/Positive/--). The rating outlook is stable. The company's reduced debt, strong margins and geographic diversity support the 'BB' rating. "We expect that the company will continue to improve its profitability through geographic and end-market diversification, and will keep its financial ratios consistent with a significant financial risk profile. We expect the company to maintain leverage of between 2x and 2.5x and FFO to debt of 25% to 30%. Moreover, we expect liquidity to remain adequate and for the company to service its capital expansion needs with internally-generated cash," S&P said. A negative rating action could occur if commercial demand for Interface's products drops substantially, or if price increases are insufficient to offset higher input costs. This could cause credit measures to deteriorate from current levels, with leverage exceeding 3.25x on a sustained basis. This could occur if sales growth turns negative and gross margins decline about 200 basis points from current levels. "A positive rating action is unlikely in the near term given our view of the company's fair business risk profile," S&P said. INTERNAL FIXATION: Incurs $723,000 Net Loss in Second Quarter ------------------------------------------------------------- Internal Fixation Systems, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $723,057 on $60,994 of net sales for the three months ended June 30, 2011, compared with a net loss of $90,345 on $24,111 of net sales for the same period during the prior year. The Company also reported a net loss of $1.12 million on $127,401 of net sales for the six months ended June 30, 2011, compared with a net loss of $109,638 on $61,545 of net sales for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $1.65 million in total assets, $2.02 million in total liabilities, and a $372,582 stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/NbARHw About Internal Fixation South Miami, Fla.-based Internal Fixation Systems, Inc., is a manufacturer and marketer of generically priced orthopedic and podiatric implants. Customers include ambulatory surgery centers, hospitals and orthopedic surgeons. IFS's strategy is to focus on commonly used implants that no longer have patent protection. The Company enhances the implants and sells them at prices below the market leaders. Goldstein Schechter Koch P.A., in Hollywood, Florida, expressed substantial doubt about Internal Fixation Systems' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company had a net loss of $781,440 for the year ended Dec, 31, 2010, cumulative losses since inception of $757,218 and a working capital deficit of $123,409. INTERNATIONAL FUEL: Completes Sale of 12.8MM Shares for $1-Mil. --------------------------------------------------------------- International Fuel Technology, Inc., completed the sale of 10,283,000 restricted shares of Company common stock, along with warrants to purchase an additional 2,570,750 shares of its common stock to a small group of accredited investors for an aggregate purchase price of $1,028,300. The warrants granted to the Investors have an exercise price of $0.25, vest immediately and expire on July 31, 2016. About Internatinonal Fuel St. Louis, Mo.-based International Fuel Technology, Inc., is a technology company that has developed a range of liquid fuel additive formulations that enhance the performance of petroleum- based fuels and renewable liquid fuels. The Company's balance sheet at March 31, 2011, showed $2.7 million in total assets, $3.9 million in total liabilities, and a stockholders' deficit of $1.2 million. As reported in the TCR on April 6, 2011, BDO USA, LLP, in Chicago, expressed substantial doubt about International Fuel'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 from operations, has a working capital deficit at Dec. 31, 2010, and has cash obligations and outflows from operating activities. IRWIN MORTGAGE: Has Approval for Bailey Cavalieri as Counsel ------------------------------------------------------------ Judge Charles M. Caldwell of the U.S. Bankruptcy Court for the Southern District of Ohio has authorized Irwin Mortgage Corporation to employ Bailey Cavalieri LLC as its general bankruptcy counsel. The firm will be paid at these hourly rates: Paralegals $150 to $175 Associates & Of Counsel $190 to $300 Members $270 to $480 The firm's professionals who will primarily render services to the Debtor and their hourly rates are: Nick V. Cavalieri Member $480/hour Robert B. Berner Member $310/hour Matthew T. Schaeffer Associate $265/hour Adam J. Biehl Associate $250/hour Craig R. Hartpence Paralegal Assistant $155/hour The firm can be reached at: Nick V. Cavalieri, Esq. BAILEY CAVALIERI LLC 10 West Broad Street, Suite 2100 Columbus, Ohio 43215 Phone: (614) 229-3252 Fax: (614) 221-0479 E-mail: nick.cavalieri@baileycavalieri.com About Irwin Mortgage For a number of years, Irwin Mortgage Corporation, based in Dublin, Ohio, originated, purchased, sold and serviced conventional and government agency backed residential mortgage loans throughout the United States. However, in 2006 and continuing into early 2007, IMC sold substantially all of its assets, including its mortgage origination business, its mortgage servicing business, and its mortgage servicing rights portfolio, to a number of third party purchasers. As a result of those sales, IMC terminated its operations and has been winding down since 2006. Irwin Mortgage filed for Chapter 11 bankruptcy (Bankr. S.D. Ohio Case No. 11-57191) on July 8, 2011. Judge Charles M. Caldwell presides over the case. In its petition, the Debtor estimated assets of $10 million to $50 million, and debts of $50 million to $100 million. The petition was signed by Fred C. Caruso, president. IRWIN MORTGAGE: Can Hire Development Specialists for Wind-Down -------------------------------------------------------------- Judge Charles M. Caldwell has authorized Irwin Mortgage Corporation to continue engaging Development Specialists, Inc., to provide wind-down management services to the Debtor. The Debtor has engaged DSI since Aug. 24, 2011, to provide management services during the Debtor's wind-down process, including (a) Fred C. Caruso, who has served as a director and as president and chief restructuring officer and (b) George E. Shoup III, who has served as assistant chief restructuring officer. DSI intends to charge the Debtor for its services on an hourly basis: Fred C. Caruso $595/hour George E. Shoup III $370/hour Jill E. Costie $285/hour Sean L. Farrell $175/hour The firm can be reached at: Fred C. Caruso DEVELOPMENT SPECIALISTS, INC. 70 West Madison Street, Suite 2300 Chicago, Illinois 60602 Tel: (312) 263-4141 E-mail: fcaruso@dsi.biz About Irwin Mortgage For a number of years, Irwin Mortgage Corporation, based in Dublin, Ohio, originated, purchased, sold and serviced conventional and government agency backed residential mortgage loans throughout the United States. However, in 2006 and continuing into early 2007, IMC sold substantially all of its assets, including its mortgage origination business, its mortgage servicing business, and its mortgage servicing rights portfolio, to a number of third party purchasers. As a result of those sales, IMC terminated its operations and has been winding down since 2006. Irwin Mortgage filed for Chapter 11 bankruptcy (Bankr. S.D. Ohio Case No. 11-57191) on July 8, 2011. Judge Charles M. Caldwell presides over the case. In its petition, the Debtor estimated assets of $10 million to $50 million, and debts of $50 million to $100 million. The petition was signed by Fred C. Caruso, president. IRWIN MORTGAGE: Files Schedules of Assets and Liabilities --------------------------------------------------------- Irwin Mortgage Corporation filed with the U.S. Bankruptcy Court for the Southern District of Ohio its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $25,661,329 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $0 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $219,353,376 ----------- ------------ TOTAL $25,661,329 $219,353,376 About Irwin Mortgage For a number of years, Irwin Mortgage Corporation, based in Dublin, Ohio, originated, purchased, sold and serviced conventional and government agency backed residential mortgage loans throughout the United States. However, in 2006 and continuing into early 2007, IMC sold substantially all of its assets, including its mortgage origination business, its mortgage servicing business, and its mortgage servicing rights portfolio, to a number of third party purchasers. As a result of those sales, IMC terminated its operations and has been winding down since 2006. Irwin Mortgage filed for Chapter 11 bankruptcy (Bankr. S.D. Ohio Case No. 11-57191) on July 8, 2011. Judge Charles M. Caldwell presides over the case. In its petition, the Debtor estimated assets of $10 million to $50 million, and debts of $50 million to $100 million. The petition was signed by Fred C. Caruso, president. JACKSON HEWITT: Lenders' Claim to be Replaced by $100MM Term Loan ----------------------------------------------------------------- In a Form 8-filing Monday, the Company discloses that on Aug. 9, 2011, the Bankruptcy Court entered an order confirming the Company's amended chapter 11 plan of reorganization. Upon consummation of the Plan: -- The claims of the lenders under the Company's Amended and Restated Credit Agreement, originally dated Oct. 6, 2006, with Wells Fargo Bank, N.A., as Administrative Agent, and the Lenders, which are secured by liens on the Company's assets and which totaled approximately $357 million upon filing for bankruptcy protection, will be reduced to and replaced by a new fully drawn $100 million secured term loan facility. -- The Company will enter into a new $115 million revolving senior secured credit facility. -- All 39,753,757 outstanding shares of the Company's common stock will be canceled, causing them to be null, void and worthless. -- The Company will adopt an Amended and Restated Certificate of Incorporation, which will provide, among other things, that the Company has authorized for issuance up to 112,000,000 shares of common stock. -- The Company will issue an aggregate of 100,000,000 shares of common stock to the Lenders, representing all of the equity in the reorganized Company upon consummation of the Plan, subject to dilution on account of up to 11,111,111 shares of common stock authorized for issuance under a management incentive plan at the discretion of the Company's board of directors. -- Pursuant to a settlement between the Company, the Official Committee of Unsecured Creditors of the Company, the Administrative Agent under the Credit Agreement and the Lenders, the Company will fund a trust with $1.1 million in cash (out of cash collateral that has been reserved to the Lenders) and certain causes of action to be pursued for the benefit of general unsecured creditors and the Lenders. The trust will be operated by representatives of the Committee and the Lenders. The trust will review and, if necessary, reconcile general unsecured claims of unpaid pre-petition creditors. A copy of the Amended Joint Prepackaged Plan of Reorganization of Jackson Hewitt Tax Service Inc. and Subsidiaries, dated Aug. 8, 2011, is available for free at http://is.gd/WzpKH7 About Jackson Hewitt Parsippany, New York-based Jackson Hewitt Tax Service Inc., aka JHTS Inc., provides computerized preparation services for federal, state and local individual income tax returns in the United States through a nationwide network of franchised and company-owned offices operating under the brand name Jackson Hewitt Tax Service. The Company has 700 franchisees who collectively operated a total of 4,846 offices. The Company also operates 1,110 company-owned offices. Jackson Hewitt and its affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 11-11587) on May 24, 2011. Judge Mary F. Walrath presides over the case. Skadden, Arps, Slate, Meagher & Flom LLP, serves as the Debtors' bankruptcy counsel. Alvarez & Marsal North America, LLC, serves as their financial advisor. Moelis & Company LLC acts as investment banker. The Garden City Group, Inc., serves as the Debtors' Claims and Noticing Agent. The Debtors also tapped Deloitte & Touche to serve as tax advisors and Kekst & Company to serve as communications advisors. BDO Financial serves as financial advisors to the Official Committee of Unsecured Creditors. Mark McDermott, Esq., at Skadden Arps, told the Bankruptcy Court at a May 25 hearing that investor and financier Bayside Capital is in line to be "a significant majority" owner of Jackson Hewitt. Bayside Capital has $4.5 billion under management. Bayside is the largest of 10 secured lenders that Jackson Hewitt owes a total of $357 million. Mr. McDermott also told the Court that Jackson Hewitt, worth an estimated $225 million, does not have sufficient value to cover the secured debt. Jackson Hewitt on Aug. 8, 2011, received confirmation of its "pre- packaged" Plan of Reorganization. Under the Plan, Jackson Hewitt will emerge as a private company. The majority owner of Jackson Hewitt's new equity will be Bayside Capital, an affiliate of Miami, FL-based H.I.G. Capital, and the largest holder of Jackson Hewitt's secured debt prior to its restructuring. As of June 30, 2011, the Company's balance sheet showed $390.3 million in total assets, $432.9 million in total liabilities, and a stockholders' deficit of $42.6 million. J.C. EVANS: Taps Cox Smith as Primary Bankruptcy Counsel -------------------------------------------------------- JCE Delaware, Inc., et al., ask the U.S. Bankruptcy Court for the Western District of Texas for permission to employ Cox Smith Matthews Incorporated as primary bankruptcy counsel. Prior to the Petition Date, Cox Smith received $65,000 from the Debtors (or via advances to the Debtors from their Surety). The sum was fully used to pay fees incurred prepetition and for the Chapter 11 filing fees. No retainer was held by the firm on the Petition Date, and Cox Smith was not owed any amounts by the Debtors. The primary attorneys and paralegal who will represent the Debtors and their hourly rates are: Mark E. Andrews, shareholder $425 George Tarpley, shareholder $425 M. Jermaine Watson, associate $340 Aaron M. Kaufman, associate $315 Stephen K. Lecholop II, associate $235 Deborah E. Andreacchi, paralegal $180 The Debtors tells the Court that the hourly rates are at or lower than the firm's standard hourly rates for work of this nature and reflect a negotiated cap on rates at $425 per hour. To the best of the Debtors' knowledge, Cox Smith is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About J.C. Evans Construction With roots stretching back over 55 years, J.C. Evans is a heavy equipment construction company based in Leander, Texas. Through J.C. Evans Construction Co., L.P., a Texas limited partnership d/b/a/ American Aggregates, the Company owns and operates a construction company specializing in heavy site preparation on commercial, pipeline, utility and highway projects, including excavating, trenching, site preparation and construction. Through Adkins Land Development, L.P., a Texas limited partnership, the Company owns a 700-acre quarry, which produces aggregate for use in road construction. J.C. Evans Construction Holdings is the holding company that owns directly or indirectly each of the other entities. In turn, Holdings is owned by a trust for the benefit of the current and former employees of J.C. Evans through an Employee Stock Ownership Plan. Six affiliated companies filed for Chapter 11 (Bankr. W.D. Tex. Case Nos. 11-11926 to 11-11931) on Aug. 1, 2011. These are JCE Delaware Inc., J.C. Evans Construction Holdings, J.C. Evans Nevada, LLC, EQUUS Development Inc., J.C. Evans Construction and Adkins Land Development. The cases are jointly administered before Judge Craig A. Gargotta. George H. Tarpley, Esq., and Mark E. Andrews, Esq., at Cox Smith Matthews Incorporated, serve as bankruptcy counsel. In its petition, JCE Delaware estimated $50 million to $100 million in both assets and debts. J.C. EVANS: Taps Burnham Securities as Financial Advisors --------------------------------------------------------- JCE Delaware, Inc., et al., ask the U.S. Bankruptcy Court for the Western District of Texas for permission to employ Burnham Securities Inc. and Reeves, Snyder & Harthcock, LLP as financial advisors. The firm will assist the Debtors in the marketing and sale of the Debtors' quarry assets. Jay Linde, senior managing director of Burnham Securities Inc., tells the Court that it has worked with Frank Reeves of Reeves, Snyder & Harthcock LLP in their review of the Debtors' quarry assets for the purpose of a possible sale of the assets. The firm has not received any prepetition compensation for their work on behalf of the Debtors. The Debtors propose that the compensation Burnham and RSH consist of: a) an initial retainer fee of $10,000; b) up to five additional monthly retainer payments of $10,000 beginning the first day of the month immediately following the entry of an order; c) a transaction fee equal to $550,000, plus 4% of the transaction value in excess of $25,000,000 payable in cash on the closing date of the transaction, if, during the engagement a transaction is consummated or an agreement is entered into that subsequently results in a transaction involving the assets. In addition, if the Debtor elects to and does retain the assets and in addition exits its bankruptcy through a plan of reorganization, the firms will be paid an exit fee of $100,000 at confirmation. To the best of the Debtors' knowledge, the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Mr. Linde can be reached at: BURNHAM SECURITIES INC. 1325 Avenue of the Americas, 26th Floor New York, NY 10019 Tel: (212) 333-9606 E-mail: jlinde@bsibam.com About JCE Delaware, Inc. Leander, Texas-based JCE Delaware, Inc., and its debtor-affiliates filed for Chapter 11 protection (Bankr. W.D. Tex. Lead Case No. 11-11926) on Aug. 1, 2011. Judge Craig A. Gargotta presides over the case. George H. Tarpley, Esq., and Mark E. Andrews, Esq., at Cox Smith Matthews Incorporated represent the Debtor in its restructuring effort. JCE Delaware estimated assets and debts at $50 million to $100 million. JONES COUNTY: S&P Lowers Rating on 2009 Revenue Bonds to 'CC' ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating to 'CC' from 'A-' on Jones County Public Facility Corporation, Texas' series 2009 revenue bonds, issued on behalf of Jones County. The outlook is negative. "The lowered rating reflects our view of Jones County's failure to appropriate funds from legally available sources to make its annual rental payments to the corporation," said Standard & Poor's credit analyst Sarah Smaardyk. County officials have indicated to Standard & Poor's that they had not appropriated funds to make a principal and interest payment due on Dec. 1, 2011, for fiscal 2011. "Furthermore, county officials indicated to us that unless they are able to secure a tenant for the jail facility, they do not plan to appropriate funds necessary to make the payment of interest and principal on the bonds from legally available funds, as required by the lease agreement securing the bonds," S&P related. "We believe the county's stated plans are consistent with our view of a clear lack of willingness by the county to meet its financial obligations to bondholders," S&P said. "If the county does not make the payment, they will default on the bonds. However, if the county makes the principal and interest payment in December, we could raise the rating to investment grade," Ms. Smaardyk said. JOSEPH DETWEILER: Creditors Can't Add More Plaintiffs in Suit ------------------------------------------------------------- In the lawsuit, styled Sequatchie Mountain Creditors, v. Joseph J. Detweiler, Adv. Proc. No. 09-6118 (Bankr. N.D. Ohio), Bankruptcy Judge Russ Kendig denied the Plaintiffs' request to add 64 individuals as new plaintiffs in the lawsuit, to bring the total number of plaintiffs to 75. The Court also denied the defendants' request to dismiss the lawsuit. A copy of the Court's Aug. 8, 2011 Memorandum of Opinion is available at http://is.gd/wUjj3b from Leagle.com. Based in Uniontown, Ohio, Joseph J. Detweiler filed for Chapter 11 protection (Bankr. N.D. Ohio Case No. 09-63377) on Aug. 17, 2009. Anthony J. DeGirolamo, Esq., represents the Debtor. In his petition, the Debtor has $3,669,999 in total assets and $32,913,552 in total debts. KT SPEARS: Section 341(a) Meeting Canceled for Lack of Interest --------------------------------------------------------------- The Hon. John E. Waites of the U.S. Bankruptcy Court for the District of South Carolina canceled the meeting of creditors in the Chapter 11 case of KT Spears Creek, LLC, scheduled for Aug. 22, 2011, at 10:45 a.m. The Debtor's counsel related that at the Aug. 8 meeting no creditors appeared to question the Debtor. It appears to be that there is no interest in further investigating the Debtor's assets via a second meeting of creditors. About KT Spears KT Spears Creek, LLC, in Houston, Texas, filed for Chapter 11 bankruptcy (Bankr. S.D. Tex. Case No. 11-33991) on May 3, 2011, Judge Letitia Z. Paul presiding. Magdalene Duchamp Conner, Esq., at Okin Adams & Kilmer LLP, serves as the Debtor's bankruptcy counsel. The Debtor estimated $10 million to $50 million in both assets and debts. The petition was signed by Kyle D. Tauch, sole member. The Hon. Letitia Z. Paul transferred the Debtor's Chapter 11 case to the Bankruptcy Court for the District of South Carolina. KT Spears Creek, LLC, in Houston, Texas, filed for Chapter 11 bankruptcy (Bankr. S.D. Tex. Case No. 11-33991) on May 3, 2011, Judge Letitia Z. Paul presiding. Magdalene Duchamp Conner, Esq., at Okin Adams & Kilmer LLP, serves as the Debtor's bankruptcy counsel. The Debtor estimated $10 million to $50 million in both assets and debts. The petition was signed by Kyle D. Tauch, sole member. LEHMAN BROTHERS: Gets $881-Mil. From 111 Counterparty Settlements ----------------------------------------------------------------- Bloomberg News reports that Lehman Brothers Holdings Inc. raised $881 million by resolving disputes with 111 counterparties, the company said in an Aug. 12 letter to the bankruptcy judge overseeing its Chapter 11 case. The letter accompanied a regular report on such settlements that will be filed in court later, Lehman said. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LOS ANGELES DODGERS: Paid $5.9-Mil. to Insiders in Past Year ------------------------------------------------------------ Carla Main at Bloomberg News reports the Los Angeles Dodgers disclosed in its statement of financial affairs that it paid company insiders, defined as directors, officers and their relatives, $5.9 million in the year before the Major League Baseball team filed for bankruptcy. The recipients' names weren't listed in publicly filed court documents because the information is confidential, Dodgers' attorney Sidney Levinson told reporters on Wednesday. In court papers filed Aug. 12, the Dodgers listed two categories of insider payments as aggregated amounts, without any names attached. Current employees collected $3.82 million between June 27, 2010, and June 26, 2011, according to the statement. Former employees were said to have received $2.09 million in the same time period, including more than $987,000 in severance pay. The payments went to a "large number" of insiders, Mr. Levinson said, according to Bloomberg News. 341 Meeting The report relates that at the meeting of creditors on Wednesday, which was open to the public, the creditors' attorneys asked whether owner Frank McCourt took any money from the team. Dodgers' Chief Financial Officer Peter D. Wilhelm told them Mr. McCourt hadn't received any compensation or any loans for at least two years. Instead, Mr. McCourt made an "equity contribution" of $23.5 million within 90 days of the team's June 27 bankruptcy. The Dodgers have denied claims by Major League Baseball that Mr. McCourt "siphoned off well over $100 million of club revenues." Baseball Commissioner Bud Selig and Mr. McCourt have traded accusations about who is at fault for the team's financial woes. Mark S. Kenney, an attorney with the Office of the U.S. Trustee, which hosted the Aug. 17 meeting, declined to say why the insider names weren't made public. 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. LPATH INC: Posts $1.4 Million Net Income in Second Quarter ---------------------------------------------------------- Lpath, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income of $1.37 million on $1.54 million of total revenues for the three months ended June 30, 2011, compared with a net loss of $1.31 million on $1 million of total revenues for the same period during the prior year. The Company also reported a net loss of $275,776 on $4.32 million of total revenues for the six months ended June 30, 2011, compared with a net loss of $655,545 on $5.08 million of total revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $21.30 million in total assets, $18.14 million in total liabilities and $3.15 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/rMHpeu About Lpath, Inc. San Diego, Calif.-based Lpath, Inc. is a biotechnology company focused on the discovery and development of lipidomic-based therapeutics, an emerging field of medical science whereby bioactive lipids are targeted to treat human diseases. The Company reported a net loss of $4.60 million on $7.83 million of total revenues for the year ended Dec. 31, 2010, compared with net income of $3.98 million on $11.91 million of total revenues during the prior year. As reported by the TCR on March 28, 2011, Moss Adams LLP, in San Diego, Calif., expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements at the end of 2009. The independent auditors noted that the Company had incurred significant cash losses from operations since inception and expects to continue to incur cash losses from operations in 2010 and beyond. In its audit report for 2010, the auditor did not issue a going concern qualification. MADISON 92ND: Pursuing Courtyard Financing While in Ch. 11 ---------------------------------------------------------- Bloomberg News reports that Madison 92nd Street Associates LLC, the owner of the Upper East Side Courtyard by Marriott in Manhattan, sought bankruptcy protection to avoid a foreclosure sale and pursue mortgage refinancing. The Debtor owns the 226-room hotel on East 92nd Street that opened in 2006 and has been managed by Courtyard Management Corp., a unit of Marriott International Inc. According to the report, lender General Electric Capital Corp., owed $74 million, has scheduled a foreclosure sale for Aug. 24. The Company's majority equity holders are working with Westport Capital Partners LLC to line up refinancing. The Debtor, the report discloses, said in a court filing that mismanagement, high labor costs and the economic slowdown have contributed to an erosion in net operating income and caused the company to become delinquent on its mortgage and subject to foreclosure proceedings, according to the filing. The Company has a pending lawsuit against Marriott alleging fraud and will seek to end the existing management agreement with Courtyard. Madison 92nd Street Associates LLC filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 11-13917) on Aug. 16, 2011. J. Ted Donovan, Esq., at Goldberg Weprin Finkel Goldstein LLP, in New York, serves as counsel. In its schedules, the Debtor disclosed $84,471,069 in assets and $75,398,580 in liabilities as of Chapter 11 filing. Legal Dispute Lisa Fickenscher at Crain's New York Business reports that the bankruptcy filing is only the latest drama at the hotel, which has been embroiled in legal disputes with Marriott International almost since its opening in 2006. Crain's notes the owners sued Marriott International in 2009, alleging that they had been duped by the hotel giant into hiring union workers or members of the New York Hotel & Motel Trades Council. In addition, according to the complaint, the owners accused Marriott International of charging excessive fees to manage the hotel among other things. According to the bankruptcy filing this week, the owners of the 226-room hotel are "at odds with each other" over how to save their investment, Crain's reports. MADISON 92ND: Case Summary & 18 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Madison 92nd Street Associates LLC 410 East 92nd Street New York, NY 10128 Bankruptcy Case No.: 11-13917 Chapter 11 Petition Date: August 16, 2011 Court: U.S. Bankruptcy Court Southern District of New York (Manhattan) Judge: Stuart M. Bernstein Debtor's Counsel: J. Ted Donovan, Esq. GOLDBERG WEPRIN FINKEL GOLDSTEIN LLP 1501 Broadway, 22nd Floor New York, NY 10036 Tel: (212) 221-5700 Fax: (212) 422-6836 E-mail: TDonovan@GWFGlaw.com Scheduled Assets: $84,471,069 Scheduled Debts: $75,398,580 The petition was signed by Louis Taic, managing member of 92nd Hotel Associates, LLC and Jeffrey Kosow, managing member of JKNY, LLC, members of debtor. List of 18 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ NYS Dept. of Taxation & Finance -- $679,581 Bankruptcy/Special Procedures P.O. Box 5300 Albany, NY 12205-0300 Rosenberg Calica & Birney Trade Debt $152,948 100 Garden City Plaza Garden City, NY 11530 Margolin Weiner Evens Trade Debt $100,290 400 Garden City Plaza Garden City, NY 11530 Olshan Grundman Frome Trade Debt $93,877 Tuchman Korngold Weiss, Lippman & Trade Debt $79,105 Gelles Tener Consulting Services Trade Debt $79,000 Rivkin Radler Trade Debt $56,257 Long Island Swimming Pool Trade Debt $34,398 Lodging Advisors Trade Debt $30,000 Jerome Gillman Consulting Trade Debt $23,089 CODE LLC Trade Debt $17,046 Raich Ende Malter & Co. Trade Debt $12,409 410 East 92nd Street Condominium Trade Debt $12,280 Walek & Associates Trade Debt $10,950 NYC Dept. of Finance -- $10,282 Seiden & Schein Trade Debt $2,225 Corporation Service Co. Trade Debt $626 Environmental Control Board Trade Debt $500 MADISON HOTEL: Senior Lenders Want to File Alternative Plan ----------------------------------------------------------- Senior lenders 62 Madison Lender, LLC and Nomad Mezz Lending, LLC, asks the U.S. Bankruptcy Court for the Southern District of New York to terminate Madison Hotel, LLC, and Madison Hotel Owners, LLC's exclusive periods to file and solicit acceptances for the proposed plan of reorganization. The senior lenders relate that they are prepared to file their proposed disclosure statement and plan upon allowance of their motion. The Lenders' Plan, according to the senior lenders, is not subject to any funding contingency or other condition outside of their control, instead will be premised upon a sale of the Debtors' principal asset - the MAve Hotel. The senior lenders believe that the Lenders' Plan, once confirmed, will provide significant advantages over the Debtors' proposed Plan and will mitigate the risks associated with the recovery prospects for secured and unsecured creditors. According to the senior lender, the Debtors' Plan contemplates, that the Nomad debt will be paid in full, in cash on the effective date of the plan. The senior lenders note that Nomad's proof of claim amounts to $5,422,685 million. The Plan also contemplates paying 25% of all allowed unsecured claims on the effective date. According to the Debtors' proposed disclosure statement, the pool of unsecured creditors contains total claims in a range of between $1,113,689 and $5,234,950. Accordingly the proposed Plan requires the Debtor to pay the unsecured creditors between $278,422 and $1,308,737 on the effective date. The senior lenders state that excluding all other funding requirements of the proposed Plan, the Debtors will, therefore, be required to pay between $5,701,107 and $6,731,422 in order to emerge from bankruptcy. The Debtors do not have anywhere close to this amount of cash on hand and the proposed disclosure statement fails to provide any insight into from where these funds will materialize. About Madison Hotel Madison Hotel, LLC, owns the 72 room 12-story hotel located at 62 Madison Avenue, New York, New York. Madison Hotel Owners LLC owns 100% of the membership interests of Madison Hotel, LLC. The Debtors estimate that the value of the hotel property is $32 million. An appraisal is pending. Prepetition, after a building loan went into arrears, a foreclosure action was commenced, and a receiver appointed. The receiver has continued to operate the hotel postpetition. Madison Hotel, LLC, based in New York, filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 11-12560) on May 27, 2011. Judge Martin Glenn presides over the case. Mark A. Frankel, Esq., at Backenroth Frankel & Krinsky, LLP, serves as bankruptcy counsel. In its schedules, the Debtor disclosed $33.6 million in assets and $26.1 million in liabilities as of the Chapter 11 filing. MCINTOSH BANCSHARES: Delays Filing of Quarterly Report ------------------------------------------------------ McIntosh Bancshares, Inc., informed the U.S. Securities and Exchange Commission that it is unable to file its quarterly report on Form 10-Q for the quarter ended June 30, 2011, by Aug. 15, 2011, without unreasonable effort and expense. The Georgia Department of Banking and Finance, on June 17, 2011, closed McIntosh State Bank, which is a wholly-owned banking subsidiary of McIntosh Bancshares, Inc., and the Federal Deposit Insurance Corporation was named as the receiver of the Bank. The Company recorded a loss of $1.9 million on the seizure of the Bank. As a result of the receivership of the Bank, the Company is in the process of winding up its operations and does not have sufficient resources to complete the audit of its 2010 consolidated financial statements or compile its Annual Report on Form 10-K or subsequent 10-Q filings. About McIntosh Bancshares Jackson, Ga.-based McIntosh Bancshares, Inc., operates as the bank holding company for McIntosh State Bank that provides commercial banking products and services to individuals and corporate customers in Georgia. The Company's balance sheet as of Sept. 30, 2010, showed $348.85 million in total assets, $341.08 million in total liabilities, and shareholders' equity of $7.77 million. As reported in the Troubled Company Reporter on April 1, 2010, Porter Keadle Moore, LLP, in Atlanta, Ga., 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 McIntosh State Bank has suffered recurring losses, and that at December 31, 2009, the Bank's capital ratios are below the required levels as established by regulation. MEDICAL CONNECTIONS: Incurs $935,000 Net Loss in Second Quarter --------------------------------------------------------------- Medical Connections Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $935,093 on $1.78 million of revenue for the three months ended June 30, 2011, compared with a net loss of $2.03 million on $1.91 million of revenue for the same period a year ago. The Company also reported a net loss of $1.80 million on $3.81 million of revenue for the six months ended June 30, 2011, compared with a net loss of $4.54 million on $3.33 million of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $2.59 million in total assets, $609,938 in total liabilities, all current, and $1.98 million total stockholders' equity. The Company has sustained operating losses, and has little recurring revenues to sustain its operations. The revenue stream is not sufficient to fund expenses at this time. These items raise substantial doubt about the Company's ability to continue as a going concern. As reported in the TCR on April 6, 2011, De Meo, Young, McGrath, in Boca Raton, Fla., expressed substantial doubt about Medical Connections Holdings' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that of the Company's dependence on outside financing, lack of sufficient working capital, and recurring losses from consolidated operations. A full-text copy of the Form 10-Q is available for free at: http://is.gd/X8h5O8 About Medical Connections Boca Raton, Fla.-based Medical Connections Holdings, Inc., is a healthcare staffing company which provides staffing services for allied professionals and nurses to the Company's clients on a national basis. MERCED FALLS RANCH: Files for Chapter 11 Protection in California ----------------------------------------------------------------- Merced Falls Ranch, LLC, filed a bare-bones Chapter 11 petition (Bankr. E.D. Calif. Case No. 11-br-19212) on Aug. 16 in Fresno, California. The Debtor disclosed assets of $100 to $500 million and debts of $10 to $50 million. The Debtor, based in Los Banos, California, listed the Merced County Tax Assessor as its largest unsecured creditor with an undisputed claim of $302,803. Stephen W. Sloan was identified as a member of Merced Falls Ranch and the holder of all of the equity in the Debtor. MERIT GROUP: Centre Lane Partners Dips Into Company --------------------------------------------------- Dow Jones' DBR Small Cap reports that Centre Lane Partners, a spinout from hedge fund D.B. Zwirn & Co., has paid $46 million to acquire most of the assets of Merit Group Inc., a distributor of paints and paint supplies, out of Chapter 11 protection. About Merit Group Based in Spartanburg, South Carolina, The Merit Group Inc., formerly Lancaster Distributing Company, serves as one of the leading paint sundries distributors in the United States. Its markets also include Mexico, the Caribbean Islands, Central America and South America. Merit Group filed for Chapter 11 bankruptcy protection (Bankr. D. S.C. Lead Case No. 11-03216) on May 17, 2011. Judge Helen E. Burris presides over the case. Michael M. Beal, Esq., McNair Law Firm PA, represents the Debtors. The Debtors selected Kurtzman Carson Consultants LLC as their claims agent; and Morgan Joseph TriArtisan LLC, investment banker, and Alvarez & Marsal North America, LLC, as financial advisors. Merit Group disclosed 7,004,048 in assets and $66,609,946 in liabilities as of the Chapter 11 filing. DIP Lender Regions Bank is represented by lawyers at Nexsen Pruet Jacobs & Pollard and Parker, Hudson, Rainer & Dobbs, LLP. The U.S. Trustee has named seven members to the Official Committee of Unsecured Creditors. The Committee is represented by Cole, Schotz, Meisel, Forman & Leonard, P.A. The Committee tapped McCarthy Law Firm LLC as co-counsel, J.H. Cohn LLP as its financial advisor. MIDCONTINENT COMMS: S&P Affirms 'B+' Corporate Credit Rating ------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'B+' senior secured issue-level rating on Minneapolis-based incumbent cable provider Midcontinent Communications following the company's announcement that it plans a $50 million add-on to its existing $200 million term loan A and $50 million add-on to its $350 million term loan B. The '3' recovery rating on both term loans is unchanged and indicates expectations for meaningful (50% to 70%) recovery in the event of payment default. The company said that it will use the net proceeds, along with $18 million drawn from the $125 million senior secured revolver, to fund the acquisition of U.S. Cable's Minnesota assets and pay related fees and expenses. "At the same time, we affirmed all other ratings on Midcontinent, including the 'B+' corporate credit rating. The outlook is stable," S&P related. "Despite the increase in leverage from the acquisition to about 5.0x (including Standard & Poor's adjustments) from 4.6x," said Standard & Poor's credit analyst Allyn Arden, "the rating affirmation reflects our view that key credit measures are still supportive of the current rating and that the company has reasonable prospects to reduce leverage over the next few years from EBITDA growth and debt repayment." Moreover, the acquisition of U.S. Cable's Minnesota assets offers Midcontinent solid growth prospects in video, high-speed data (HSD), and telephone given the below-industry average penetration levels. MILESTONE SCIENTIFIC: Incurs $298,000 Net Loss in Second Quarter ---------------------------------------------------------------- Milestone Scientific Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss applicable to common stockholders of $298,066 on $2.46 million of net product sales for the three months ended June 30, 2011, compared with net income applicable to common stockholders of $180,360 on $3.21 million of net product sales for the same period during the prior year. The Company also reported a net loss applicable to common stockholders of $439,711 on $4.89 million of net product sales for the six months ended June 30, 2011, compared with net income applicable to common stockholders of $264,282 on $5.78 million of net product sales for the same period a year ago. The Company reported a net loss of $614,508 on $9.75 million of product sales for the year ended Dec. 31, 2010, compared with a net loss of $1.53 million on $8.55 million of product sales during the prior year. The Company's balance sheet at June 30, 2011, showed $7.38 million in total assets, $5.27 million in total liabilities and $2.11 million in total stockholders' equity. As reported by the TCR on April 4, 2011, Holtz Rubenstein Reminick LLP, in New York, noted that the Company has suffered recurring losses from operations since inception, which raises substantial doubt about its ability to continue as a going concern. A full-text copy of the Form 10-Q is available for free at: http://is.gd/B6qsVn About Milestone Scientific Piscataway, N.J.-based Milestone Scientific Inc. (OTC BB: MLSS) -- http://www.milestonescientific.com/-- is engaged in pioneering proprietary, highly innovative technological solutions for the medical and dental markets. Central to the Company's IP platform and product development strategy is its patented CompuFlo(R) technology for the improved and painless delivery of local anesthetic. NEBRASKA BOOK: NBC Delays 2nd Quarter Form 10-Q ----------------------------------------------- NBC Acquisition Corp. says that as a result of the pendency of the Company and wholly-owned subsidiary Nebraska Book Company's Chapter 11 cases, the Company has been required to devote a substantial portion of its personnel and administrative resources, including the personnel and resources of its accounting and financial reporting organization, to matters relating to the cases. This has resulted in a delay in the Company's completion of its quarterly report on Form 10-Q for its quarter ended June 30, 2011. The Company expects to file its Form 10-Q with the Securities and Exchange Commission within the time period prescribed in Rule 12b- 25 under the Securities Exchange Act of 1934. 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: S&P Assigns 'BB-' Rating to $75-Mil. DIP Revolver ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned ratings to Nebraska Book Co. Inc.'s $200 million debtor-in-possession (DIP) credit facility comprising a $75 million super-priority senior secured asset-based (ABL) first-out revolving credit facility and a $125 million second-out term loan due June 2012 (or upon emergence from bankruptcy). "We assigned a 'BB-' point-in-time rating to the $75 million revolving credit facility and a 'B+' point-in-time rating to the $125 million DIP term loan," S&P said. "The higher rating on the DIP revolver reflects its senior repayment position relative to the term loan under a liquidation scenario," said Standard & Poor's credit analyst Jayne Ross, "and our expectation that the revolving facility has good repayment prospects even in a liquidation scenario." According to the company, proceeds from the DIP facility will be used for working capital purposes, repayment of loans under the prepetition credit agreement, and the payment of fees and expenses. "At the same time, we withdrew our issue-level and recovery ratings on the prepetition debt of Nebraska Book and its immediate parent, NBC Acquisition Corp. This debt consists of a $75 million ABL revolving credit facility due 2012, $200 million 10% senior secured notes due 2011, $175 million 8.625% senior subordinated notes due 2012, and $77 million 11% senior discount notes due 2013," S&P said. The company's corporate credit rating remains 'D'. NBC Acquisition and related entities filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code on June 27, 2011. "Our ratings on the DIP facility reflect our view of the likelihood of repayment of the DIP facility in full upon the company's reorganization and emergence from bankruptcy," said Ms. Ross, "as well as our assessment of lenders' prospect for recovery of principal in the event that liquidation becomes necessary." "The DIP loan ratings are point-in-time ratings assigned on the date we performed the analysis, based on information provided and available at such time and the assumptions that we outline in this report. We will withdraw these ratings shortly after publishing and Standard & Poor's will not review, modify, or monitor the ratings based on subsequent information or changes to market conditions." NEOMEDIA TECHNOLOGIES: Incurs $55.8 Million Net Loss in Q2 ---------------------------------------------------------- NeoMedia Technologies, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $55.86 million on $767,000 of revenue for the three months ended June 30, 2011, compared with net income of $9.50 million on $221,000 of revenue for the same period during the prior year. The Company also reported a net loss of $47.07 million on $1.13 million of revenue for the six months ended June 30, 2011, compared with net income of $66.83 million on $576,000 of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $8.07 million in total assets, $129.72 million in total liabilities, all current, $6.10 million in Series C convertible preferred stock, $2.50 million in Series D convertible preferred stock and a $130.26 million total shareholders' deficit. The Company reported a net income of $35.09 million on $1.52 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $67.38 million on $1.66 million of revenue during the prior year. The Company has historically incurred net losses from operations and expects it will continue to have negative cash flows as it implements its business plan. The Company said there can be no assurance that its continuing efforts to execute its business plan will be successful and that it will be able to continue as a going concern. Kingery & Crouse, P.A, in Tampa, Fla., expressed substantial doubt about the Company's ability to continue as a going concern. The accounting firm noted that the Company has suffered recurring losses from operations and has ongoing requirements for additional capital investment. A full-text copy of the Form 10-Q is available for free at: http://is.gd/RIovjb About NeoMedia Technologies Atlanta, Ga.-based NeoMedia Technologies, Inc., provides mobile barcode scanning solutions. The Company's technology allows mobile devices with cameras to read 1D and 2D barcodes and provide "one click" access to mobile content. NEW GENERATION: Currently Seeking Alternative Financing ------------------------------------------------------- New Generation Biofuels Holdings, Inc., notified Alpha Capital Anstalt that it would be unable to meet it's Aug. 1, 2011, repayment obligation under the terms of a Feb. 1, 2011, Subscription Agreement, as amended, by and among the Company and four investors (of which Alpha was one) and further that the financing terms established in the Subscription Agreement were no longer adequate to properly capitalize the Company. The Company further asked Alpha to consider alternative financing arrangements that would adequately capitalize the Company. On Aug. 10, 2011, the Company entered into a Second Amendment Agreement with Alpha, which amended that certain Subscription Agreement. The Amendment only amends the terms, conditions, and obligations as between the Company and Alpha. Pursuant to the June 7, 2011, First Amendment and Consent Agreement, Alpha agreed to loan the Company up to an additional aggregate principal amount of $1,025,000 pursuant to the terms and conditions of the Subscription Agreement in equal installments beginning in June 2011 and ending in January 2012. Pursuant to the Amendment, the Company and Alpha agreed to terminate the remaining investment obligations under the First Amendment and Alpha agreed to provide $50,000 to the Company on the same terms as the Subscription Agreement, which it did on Aug. 11, 2011 The Company is actively seeking alternative financing arrangements, including discussions with Alpha and other parties. However, as a result of the termination of the financing installments pursuant to the Amendment, the Company does not have any known source of funding available as Aug. 12, 2011. If the Company is unable to obtain additional financing, whether through the issuance of equity or debt, or find a financing partner, it is unlikely that the Company will be able to continue as a going concern. The Company estimates that it currently has sufficient funds to operate the business of the Company for less than 30 days without any additional financing. About New Generation Columbia, Md.-based New Generation Biofuels Holdings, Inc., is a clean energy company deploying novel technologies to produce cleaner, renewable biofuels. The Company has rights to a portfolio of patented and patent pending technology to manufacture alternative biofuels from plant oils, animal fats and related oils, which it markets as a new class of biofuel for power generation, commercial and industrial heating, and related uses. The Company's balance sheet at March 31, 2011, showed $7.1 million in total assets, $7.7 million in total liabilities, and a stockholders' deficit of $604,959. Reznick Group, P.C., in Vienna, Va., expressed substantial doubt about New Generation Biofuels Holdings' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has experienced negative cash flows from operations since inception and is dependent upon future financing in order to meet its planned operating activities. NEWPAGE CORP: Bondholders Bet on Lower Recovery ----------------------------------------------- Senior bondholders of NewPage Corp. are less likely to receive a full recovery in a restructuring after the coated papermaker reported weak results and said it may not complete planned asset sales. The Company's $1.77 billion of 11.375% first-lien notes due December 2014 have dropped 9.75 cents this month, to 80.75 cents on the dollar Aug. 17, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. NewPage, which is owned by Cerberus Capital Management LP, is "uncertain" about whether it can close about $131 million of asset sales, since certain conditions necessary to complete the transactions "may not be satisfied," it said in a filing Aug. 16. The Company on Aug. 17 reported a loss of $132 million for the three months ending June 30 due to higher commodity costs and lower demand from North American catalog manufacturers and magazine publishers. NewPage probably won't make its November interest payment and holders of its senior secured notes are less likely to be fully covered in a restructuring, Brian Bogart, an analyst at KDP Investment Advisors Inc., wrote in an Aug. 15 report. Standard & Poor's on Aug. 16 cut the Miamisburg, Ohio-based company's corporate credit rating and first-lien bonds to CCC from CCC+, citing "constrained near-term liquidity." The company hired Lazard Ltd., FTI Consulting Inc. and law firm Dewey & LeBoeuf LLP to help restructure its debt. "If we are unable to refinance our debt or generate sufficient cash flow to service our obligations, we will be required to seek to restructure our existing debt" or file for Chapter 11 bankruptcy, the Company has said. About NewPage Corp. Headquartered in Miamisburg, Ohio, NewPage Corporation -- http://www.NewPageCorp.com/-- is a coated paper manufacturer in North America, based on production capacity, with $3.1 billion in net sales for the year ended Dec. 31, 2009. The company's product portfolio is the broadest in North America and includes coated freesheet, coated groundwood, supercalendered, newsprint and specialty papers. These papers are used for corporate collateral, commercial printing, magazines, catalogs, books, coupons, inserts, newspapers, packaging applications and direct mail advertising. NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia, Canada. These mills have a total annual production capacity of approximately 4.4 million tons of paper, including approximately 3.2 million tons of coated paper, approximately 1.0 million tons of uncoated paper and approximately 200,000 tons of specialty paper. The Company reported a net loss of $674 million on $3.59 billion of net sales for the year ended Dec. 31, 2010, compared with a net loss of $318 million on $3.10 billion on net sales during the prior year. The Company's balance sheet at March 31, 2011, showed $3.50 billion in total assets, $4.24 billion in total liabilities, and a $746 million total deficit. * * * In August 2011, Standard & Poor's Ratings Services lowered its corporate credit rating on Miamisburg, Ohio-based NewPage Corp. to 'CCC' from 'CCC+'. "The rating actions follow NewPage's recently announced weaker- than-expected operating results for the quarter ended June 30, 2011, and the decision to hold off on its previously announced asset sales," said Standard & Poor's credit analyst Tobias Crabtree. "Based on our lowered 2011 EBITDA expectations and the likelihood of no additional material assets sales over the upcoming months, we believe NewPage could be challenged to meet its fixed charges, including over $160 million of cash interest expense, during the remainder of 2011. In addition, the company faces significant debt maturities and the maturity of its revolving credit facility within the next year if it cannot repay or refinance its $1 billion of second-lien notes by December 2011." "For the remainder of 2011, higher anticipated average selling prices and a seasonal increase in demand for coated papers are expected to lead to an improvement in operating performance when compared with the first half of 2011. Still, higher cost inflation and a more uncertain economic outlook are likely, in our view, to result in second half operating performance being challenged to meet the prior year's similar period adjusted EBITDA of about $225 million. As a result, we believe 2011 adjusted EBITDA could now materially fall below the company's $400 million of estimated annual cash interest expense and maintenance-related capital expenditures. We expect the company to remain highly leveraged, with adjusted debt to EBITDA likely exceeding 10x and its fixed- charge coverage remaining below 1x throughout 2011. Because demand correlates closely to general economic conditions, highly cyclical advertising spending, and exchange rates, we think NewPage's financial results and credit measures will fluctuate widely during the course of a cycle," S&P related. NEWPAGE CORP: Cut by S&P to 'CCC' on Upcoming Maturities -------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Miamisburg, Ohio-based NewPage Corp. to 'CCC' from 'CCC+'. "At the same time, we lowered the issue-level rating on the company's first-lien notes to 'CCC' from 'CCC+'. The recovery rating remains '4', indicating our expectation that lenders can expect average (30% to 50%) recovery in the event of a payment default. We also lowered the issue-level rating on the company's second-lien notes and senior subordinated notes to 'CC' from 'CCC- '. The recovery rating remains '6', indicating our expectation that lenders can expect negligible (0% to 10%) recovery in the event of a payment default," S&P said. "We subsequently placed all ratings on NewPage on CreditWatch with negative implications," S&P said. "The rating actions follow NewPage's recently announced weaker- than-expected operating results for the quarter ended June 30, 2011, and the decision to hold off on its previously announced asset sales," said Standard & Poor's credit analyst Tobias Crabtree. "Based on our lowered 2011 EBITDA expectations and the likelihood of no additional material assets sales over the upcoming months, we believe NewPage could be challenged to meet its fixed charges, including over $160 million of cash interest expense, during the remainder of 2011. In addition, the company faces significant debt maturities and the maturity of its revolving credit facility within the next year if it cannot repay or refinance its $1 billion of second-lien notes by December 2011." For the remainder of 2011, higher anticipated average selling prices and a seasonal increase in demand for coated papers are expected to lead to an improvement in operating performance when compared with the first half of 2011. "Still, higher cost inflation and a more uncertain economic outlook are likely, in our view, to result in second half operating performance being challenged to meet the prior year's similar period adjusted EBITDA of about $225 million. As a result, we believe 2011 adjusted EBITDA could now materially fall below the company's $400 million of estimated annual cash interest expense and maintenance-related capital expenditures. We expect the company to remain highly leveraged, with adjusted debt to EBITDA likely exceeding 10x and its fixed-charge coverage remaining below 1x throughout 2011. Because demand correlates closely to general economic conditions, highly cyclical advertising spending, and exchange rates, we think NewPage's financial results and credit measures will fluctuate widely during the course of a cycle," S&P said. Standard & Poor's will likely resolve this CreditWatch once it has a better understanding of what steps NewPage intends to take with regards to repaying or refinancing its $1 billion second-lien notes due May 2012 by Dec. 2, 2011. NEXTMART INC: Delays Filing of Quarterly Report on Form 10-Q ------------------------------------------------------------ NextMart, Inc., informed the U.S. Securities and Exchange Commission that due to events unforeseen by the Company, it is unable to complete its quarterly report on Form 10-Q for the period ended June 30, 2011, without an unreasonable effort and expense. About NextMart Inc. Beijing, PRC-based NextMart, Inc., was originally incorporated under the laws of Minnesota in 1972 and was previously known as SE Global Equity. In May 2007, the Company reincorporated into the State of Delaware and changed its name to NextMart, Inc. NextMart's planned business operations for 2011 will consist of 1) the sale of marketing solutions through art events and art media marketing channels, and 2) the design and marketing of art-themed products lines for existing luxury and high-end goods and services, and art themed real estate developments. The Company's balance sheet at March 31, 2011, showed $1.4 million in total assets, $3.1 million in total liabilities, and a stockholders' deficit of $1.7 million. As reported in the Troubled Company Reporter on Jan. 19, 2011, Bernstein & Pinchuk LLP, in New York, expressed substantial doubt about NextMart, Inc.'s ability to continue as a going concern, following the Company's results for the fiscal year ended Sept. 30, 2010. The independent auditors noted that the Company has incurred significant losses from operations for the two years ended Sept. 30, 2010, and has a working capital deficiency. NOMOTO INVESTMENTS: Files for Bankruptcy in California ------------------------------------------------------ Nomoto Investments LLC, a single-asset real estate limited liability company based in Beverly Hills, California sought Chapter 11 protection (Bankr. C.D. Calif. Case No. 11-44542) on Aug. 14 in Los Angeles. It declared assets of as much as $10 million and liabilities of as much as $50 million in court papers. Rabobank NA of Bakersfield, California is the only unsecured creditor listed by Nomoto; it has a claim of $10.5 million. NORD RESOURCES: Nedbank Refuses to Extend Forbearance Agreement --------------------------------------------------------------- As announced on May 14, 2010, Nedbank Limited, Nord Resources Corporation's senior lender, declined to extend a forbearance agreement regarding the scheduled principal and interest payments that were due between March 31, 2010, and June 30, 2011, under Nord's $25 million secured term-loan facility. Accordingly, the company has been in default of its obligations under the Credit Agreement with Nedbank since May 14, 2010, and the full amount of the outstanding principal of $23,257,826 must now be included in the company's current liabilities. As of June 30, 2011, the company has reclassified $5,356,841 of senior long-term debt to current liabilities within the condensed consolidated balance sheet. Nedbank Capital also declined to extend the forbearance agreement regarding the company's failure to make the timely monthly settlement payments beginning in March of 2010 through June 30, 2011, under the copper hedge agreement. As of June 30, 2011, the amount due to Nedbank Capital related to these settlements is $11,560,918 and is included in current liabilities within the copper derivatives settlement payable line item. The remaining derivative contracts under this agreement settle in 2011 and are therefore included in current liabilities as of June 30, 2011. About Nord Resources Based in Tuczon, Arizona, Nord Resources Corporation (TSX:NRD/OTCBB:NRDS.OB) -- http://www.nordresources.com/-- is a copper mining company whose primary asset is the Johnson Camp Mine, located approximately 65 miles east of Tucson, Arizona. Nord commenced mining new ore on February 1, 2009. Nedbank, the Company's senior lender, has declined to extend the forbearance agreement with respect to the scheduled principal and interest payment in the approximate amount of $2,150,000 that was due on March 31, 2010 under the Company's $25,000,000 secured term-loan credit facility with Nedbank. Nedbank Capital has also declined to extend the forbearance agreement regarding the Company's failure to make the payment of $697,869 due on April 6, 2010 under the Copper Hedge Agreement between the parties. Both forbearance agreements expired at midnight on May 13, 2010. The Company is now in default of its obligations under the Credit Agreement and the Copper Hedge Agreement with Nedbank. On June 2, 2010, Nord Resources appointed FTI Consulting to advise on refinancing structures and strategic alternatives. The Company reported a net loss of $21.20 million on $28.64 million of net sales for the year ended Dec. 31, 2010, compared with net income of $392,438 on $19.91 million of net sales during the prior year. The Company's balance sheet at March 31, 2011, showed $60.92 million in total assets, $60.98 million in total liabilities and a $56,548 total stockholders' deficit. As reported by the TCR on April 4, 2011, Mayer Hoffman McCann P.C., in Phoenix, Arizona, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted as of Dec. 31, 2010, and 2009, the Company reported a deficit in net working capital of $39,929,666 and $7,652,818, respectively. The Company's significant historical operating losses, lack of liquidity, and inability to make the requisite principal and interest payments due under the terms of the Company's credit agreement with its senior lender raise substantial doubt about the Company's ability to continue as a going concern, the auditors said. NORTHCORE TECHNOLOGIES: Incurs C$1.8MM Net Loss in Second Quarter ----------------------------------------------------------------- Northcore Technologies Inc. reported a net loss and comprehensive loss of C$1.88 million on C$187,000 of revenue for the three months ended June 30, 2011, compared with a net loss and comprehensive loss of C$614,000 on C$124,000 of revenue for the same period a year ago. The Company also reported a net loss and comprehensive loss of C$2.45 million on C$370,000 of revenue for the six months ended June 30, 2011, compared with a net loss and comprehensive loss of C$1.32 million on C$274,000 of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed C$1.39 million in total assets, C$1.33 million in total liabilities and C$61,000 in total shareholders' equity. "These are very exciting times for Northcore. We are entering into a new phase of growth with product offerings that address high value strategic areas such as social commerce," said Amit Monga, CEO of Northcore Technologies. "In addition, we have a renewed focus on selling our asset management platform in new markets and verticals through partnerships. We are also aggressively working to monetize our intellectual property portfolio by targeting high affinity domains. We believe that our efforts will serve to deliver maximum value for Northcore shareholders." A full-text copy of the Interim Consolidated Financial Statements is available for free at http://is.gd/3piUJo About Northcore Toronto, Ontario-based Northcore Technologies Inc. (TSX: NTI; OTC BB: NTLNF) -- http://www.northcore.com/-- provides a Working Capital Engine(TM) that helps organizations source, manage, appraise and sell their capital equipment. Northcore offers its software solutions and support services to a growing number of customers in a variety of sectors including financial services, manufacturing, oil and gas and government. Northcore owns 50% of GE Asset Manager, LLC, a joint business venture with GE. Together, the companies work with leading organizations around the world to help them liberate more capital value from their assets. Northcore reported a net loss for the first quarter of C$574,000. This compares with a net loss of C$677,000 in the fourth quarter of 2010. In the first quarter of 2010, Northcore reported a net loss of $713,000. Northcore reported consolidated revenues of C$183,000 for the first quarter, an increase of 4% over the C$176,000 reported in the fourth quarter of 2010. In the same period of 2010, Northcore reported consolidated revenues of C$150,000. Certain adverse conditions and events cast substantial doubt upon the ability of the Company to continue as a going concern, the Company said in the filing. "The Company has not yet realized profitable operations and has relied on non-operational sources of financing to fund operations." The Company's balance sheet at March 31, 2011, showed C$595,000 in total assets, C$1.83 million in total liabilities and a C$1.24 million in total shareholders' deficiency. NOVADEL PHARMA: Incurs $5 Million Net Loss in Second Quarter ------------------------------------------------------------ Novadel Pharma Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $5.02 million on $192,000 of total revenue for the three months ended June 30, 2011, compared with a net loss of $1.12 million on $66,000 of total revenue for the same period during the prior year. The Company also reported a net loss of $7.59 million on $257,000 of total revenue for the six months ended June 30, 2011, compared with a net loss of $2.42 million on $195,000 of total revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $1.19 million in total assets, $10.87 million in total liabilities, and a $9.67 million total stockholders' deficiency. As reported in the TCR on April 1, 2011, J.H. Cohn LLP, in Roseland, New Jersey, expressed substantial doubt about Novadel Pharma'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 from operations and negative cash flows from operating activities. As of June 30, 2011, the Company had cash and cash equivalents of $865,000, negative working capital of $3.3 million, and an accumulated deficit of $93 million. Based on the Company's operating plan, the Company expects that its existing cash and cash equivalents will fund its operations only through Sept. 30, 2011. A full-text copy of the Form 10-Q is available for free at:' http://is.gd/P3tJby About NovaDel Pharma Bridgewater, N.J.-based NovaDel Pharma Inc. (OTC BB: NVDL) -- http://www.novadel.com/-- is a specialty pharmaceutical company that develops oral spray formulations of marketed pharmaceutical products. The Company's patented oral spray drug delivery technology seeks to improve the efficacy, safety, patient compliance, and patient convenience for a broad range of prescription pharmaceuticals. OLD CORKSCREW: Seeks to Employ McDowell Rice as General Counsel --------------------------------------------------------------- Old Corkscrew Plantation LLC and its debtor-affiliates ask the U.S. Bankruptcy Court for the Middle District of Florida for permission to employ McDowell, Rice, Smith & Buchanan P.C. as general counsel to give advice to the Debtors with respect to their powers and duties as debtors-in-possession. The Debtors assure the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Fort Myers, Florida-based Old Corkscrew Plantation LLC, whose oranges are made into Minute Maid and Tropicana juice, filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 11-14559) on July 29, 2011, disclosing $25,264,047 in assets and $60,751,633 in debts. Old Corkscrew sought Chapter 11 protection along with its affiliates. The Debtors' orange groves are valued at $24 million. Peter Steven Singerman, Esq. -- singerman@bergersingerman.com -- at Berger Singerman P.A., serves as the Debtors' bankruptcy counsel. Scott Westlake, the Debtors' managing member, signed the petition. Mr. Westlake is also listed as the Debtors' largest unsecured creditor, with $4,827,906 owed. Another $338,511 debt is owed to Scott and Vicki Westlake. OLD CORKSCREW: Proposes Berger Singerman as Counsel --------------------------------------------------- Old Corkscrew Plantation LLC and its debtor-affiliates ask the U.S. Bankruptcy Court for the Middle District of Florida for permission to employ Berger Singerman P.A. as counsel to advise the Debtor on their relation with and responsibilities to the creditors and other interested parties. The firm will bill between $225 and $625 per hour for professional services. Paul Steven Singerman and Debi Evans Galler will charge $450 per hour and $595 per hour, respectively. The Debtors assure the Court that the firm is a "disinterested person" within the meaning of Section 101(14) Bankruptcy Code. Fort Myers, Florida-based Old Corkscrew Plantation LLC, whose oranges are made into Minute Maid and Tropicana juice, filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 11-14559) on July 29, 2011, disclosing $25,264,047 in assets and $60,751,633 in debts. Old Corkscrew sought Chapter 11 protection along with its affiliates. The Debtors' orange groves are valued at $24 million. Peter Steven Singerman, Esq. -- singerman@bergersingerman.com -- at Berger Singerman P.A., serves as the Debtors' bankruptcy counsel. Scott Westlake, the Debtors' managing member, signed the petition. Mr. Westlake is also listed as the Debtors' largest unsecured creditor, with $4,827,906 owed. Another $338,511 debt is owed to Scott and Vicki Westlake. OLD CORKSCREW: Taps Kapila & Co as Chief Restructuring Officer -------------------------------------------------------------- Old Corkscrew Plantation LLC and its debtor-affiliates ask the U.S. Bankruptcy Court for the Middle District of Florida for permission to employ Kapila & Company as chief restructuring officer. The firm will provide restructuring management services including providing the services of Soneet R. Kapila to serve as chief restructuring officer of the Debtors. The firm will be paid by the Debtor for the services rendered at $490 per hour. The Debtors assure the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Fort Myers, Florida-based Old Corkscrew Plantation LLC, whose oranges are made into Minute Maid and Tropicana juice, filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 11-14559) on July 29, 2011, listing $25,264,047 in assets and $60,751,633 in debts. Old Corkscrew sought Chapter 11 protection along with its affiliates. The Debtors' orange groves are valued at $24 million. Peter Steven Singerman, Esq. -- singerman@bergersingerman.com -- at Berger Singerman P.A., serves as the Debtors' bankruptcy counsel. Scott Westlake, the Debtors' managing member, signed the petition. Mr. Westlake is also listed as the Debtors' largest unsecured creditor, with $4,827,906 owed. Another $338,511 debt is owed to Scott and Vicki Westlake. OLD CORKSCREW: Wants to Hire Arcadia Citrus as Manager ------------------------------------------------------ Old Corkscrew Plantation LLC and its debtor-affiliates ask the U.S. Bankruptcy Court for the Middle District of Florida for permission to employ Arcadia Citrus Enterprises Inc. as manager of citrus grove operations owned by the Debtors. The Debtors own about 5,625 acres of real property in Estero, Florida, approximately 4,622 acres of which are under cultivation as citrus groves. The Debtors will pay, on the 15th day of each month, to the firm a sum of $5 per acre of property for the preceding month's services. The Debtors assure the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Fort Myers, Florida-based Old Corkscrew Plantation LLC, whose oranges are made into Minute Maid and Tropicana juice, filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 11-14559) on July 29, 2011, disclosing $25,264,047 in assets and $60,751,633 in debts. Old Corkscrew sought Chapter 11 protection along with its affiliates. The Debtors' orange groves are valued at $24 million. Peter Steven Singerman, Esq. -- singerman@bergersingerman.com -- at Berger Singerman P.A., serves as the Debtors' bankruptcy counsel. Scott Westlake, the Debtors' managing member, signed the petition. Mr. Westlake is also listed as the Debtors' largest unsecured creditor, with $4,827,906 owed. Another $338,511 debt is owed to Scott and Vicki Westlake. OSAGE EXPLORATION: Posts $2.8-Mil. Net Income in Second Quarter --------------------------------------------------------------- Osage Exploration and Development, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting net income of $2.76 million on $962,450 of total operating revenues for the three months ended June 30, 2011, compared with a net loss of $296,313 on $374,348 of total operating revenues for the same period a year ago. The Company also reported net income of $2.71 million on $1.60 million of total operating revenues for the six months ended June 30, 2011, compared with a net loss of $1.29 million on $799,111 of total operating revenues for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $5.31 million in total assets, $1.16 million in total liabilities, and $4.15 million in total stockholders' equity. The Company incurred significant losses in the last three years and has an accumulated deficit of $7.38 million at June 30, 2011, and $10.09 million at Dec. 31, 2010. Substantial portions of the losses are attributable to asset impairment charges, stock based compensation, professional fees and interest expense. The Company's operating plans require additional funds that may take the form of debt or equity financings. The Company said there is no assurance that additional funds will be available. The Company reported a net loss $1.62 million on $1.83 million of total operating revenues for the year ended Dec. 31, 2010, compared with a net loss of $2.32 million on $2.81 million of total operating revenues during the prior year. GKM, LLP expressed substantial doubt about the Company's ability to continue as a going concern. GKM noted that the Company has suffered recurring losses from operations and has an accumulated deficit as of Dec. 31, 2010. A full-text copy of the Form 10-Q is available for free at: http://is.gd/TCWbRi About Osage Exploration Based in San Diego, California with production offices in Oklahoma City, Oklahoma, and executive offices in Bogota, Colombia, Osage Exploration and Development, Inc. (OTC BB: OEDV) -- http://www.osageexploration.com/-- is an independent exploration and production company with interests in oil and gas wells and prospects in the US and Colombia. OTERO COUNTY: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Otero County Hospital Association, Inc. dba Gerald Champion Regional Medical Center Mountain View Catering c/o John D. Wheeler John D. Wheeler & Associates, PC 500 East 10th Street, Suite 305 Alamogordo, NM 88310 Bankruptcy Case No.: 11-13686 Chapter 11 Petition Date: August 16, 2011 Court: U.S. Bankruptcy Court New Mexico (Albuquerque) Judge: Robert H. Jacobvitz Debtor's Counsel: Craig H. Averch, Esq. WHITE & CASE, LLP 633 West Fifth Street, Suite 1900 Los Angeles, CA 90071 Tel: (213) 620-7704 Fax: (213) 452-2329 E-mail: caverch@whitecase.com - and - John D. Wheeler, Esq. JOHN D. WHEELER & ASSOCIATES, PC 500 East 10th Street, Suite 305 Alamogordo, NM 88310 Tel: (575) 437-5750 Fax: (575) 437-3557 E-mail: jdw@jdw-law.com Estimated Assets: $100,000,001 to $500,000,000 Estimated Debts: $50,000,001 to $100,000,000 The petition was signed by William Morgan Hay, chief financial officer. List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ City of Alamogordo, New Mexico Unexpired Real $36,748,750 P.O. Box 2978 Property Lease Alamogordo, NM 88310 EmCare Services $500,000 7032 Collection Center Drive Chicago, IL 60693 Cerner Software/Services $342,345 P.O. Box 412702 Kansas City, MO 64141-2732 Cardinal Health Pharm. Supplies $240,332 Cardinal Health Allegiance Supplies $181,106 Universal Hospital Services Supplies $128,251 PNM Electric Utility $103,724 Airgas Supplies $90,547 Energy Control, Inc. Equipment $60,145 Milestone Healthcare Services $56,904 Stryker Orthopaedics Supplies $45,689 Gulf Coast Pharm/Accord Supplies $43,178 3M Health Information Software/Supplies $41,910 Medline Industries, Inc. Supplies $30,467 Diamond Healthcare Services $30,000 E-Pharm Pro Services $23,000 ASD Healthcare Supplies $22,627 Cardinal Health NPS Supplies $18,202 Bio-met Sports Med Supplies $16,453 Claims of Plaintiffs Tort Unknown OXIGENE INC: Files Form 10-Q, Incurs $2.9 Million Net Loss in Q2 ---------------------------------------------------------------- OXiGENE, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting 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 a year ago. 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 during the prior year. 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. 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. A full-text copy of the Form 10-Q is available for free at: http://is.gd/ekCLci 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. PAPA KENO'S: Voluntarily Dismisses Case After Reaching Deal ----------------------------------------------------------- Ian Cummings at Kansan.com reports that the bankruptcy filing of Papa Keno's Pizzeria was voluntarily dismissed on Aug. 2, 2011. The owner Greg Keenan said he reached an agreement with his creditors and withdrew his case from the court. According to the report, some former employees have filed complaints with the Kansas Department of Labor against Mr. Keenan, claiming unpaid wages, beginning in 2008. Mr. Keenan said he had resolved most of those cases, but not all of them. Papa Keno's Pizzeria, Inc. filed for Chapter 11 bankruptcy protection on June 23, 2011 in the U.S. Bankruptcy Court for the District of Kansas (Case No. 11-21894). PATIENT SAFETY: 31.2-Mil. Shares Offering Form S-1 Amended ---------------------------------------------------------- Patient Safety Technologies, Inc., filed with the U.S. Securities and Exchange Commission Amendment No. 2 to Form S-1 registration statement relating to the offering by the selling stockholders of the Company of up to 31,244,769 shares of common stock, par value $0.33 per share. The closing price of the Company's common stock on Aug. 10, 2011, was $1.09 per share. The Company's common stock is quoted on the OTC Bulletin Board under the symbol "PSTX". A full-text copy of the amended prospectus is available for free at http://is.gd/TmeGHO About Patient Safety Technologies Patient Safety Technologies, Inc. (OTC: PSTX) -- http://www.surgicountmedical.com/-- through its wholly owned operating subsidiary SurgiCount Medical, Inc., provides the Safety-Sponge(TM) System, a system designed to improve the standard of patient care and reduce health care costs by preventing the occurrence of surgical sponges and other retained foreign objects from being left inside patients after surgery. RFOs are among one of the most common surgical errors. Patient Safety reported net income of $2.00 million on $14.79 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $17.53 million on $4.50 million of revenue during the prior year. The Company's balance sheet at March 31, 2011, showed $13.27 million in total assets, $3.13 million in total liabilities, all current, and $10.14 million in total stockholders' equity. In its March 31, 2010 report, Squar, Milner, Peterson, Miranda & Williamson, LLP, in San Diego, California, noted that the Company's significant recurring net losses through Dec. 31, 2009, and significant working capital deficit as of Dec. 31, 2009, raise substantial doubt about the Company's ability to continue as a going concern. PAUL BRENNEKE: Meeting of Creditors Scheduled for Sept. 12 ---------------------------------------------------------- The U.S. Trustee for Region 18 will convene a meeting of creditors in Paul Brenneke Qualified Personal Residence Trust UDT's Involuntary Chapter 11 case on Sept. 12, 2011, at 1:30 p.m. The meeting will be held at the U.S. Trustee's Office, 620 SW Main St., Rm 213, Portland, Oregon. The Debtor notes that the meeting will not be held at Multnomah County Courthouse. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. The Court also ordered that individuals and entities have until Dec. 12, 2011, to file proofs of claim against the Debtor. Governmental units who must file their proofs of claim within 180 days after Aug. 12. About Paul Brenneke Qualified Personal Residence Trust Z&A Irrevocable Trust UDT, Elene Dunavan, Jones Dave D&J Remodeling, and Victor Le Nettoyeur LLC filed for Involuntary Chapter 11 protection for Portland, Oregon-based Paul Brenneke Qualified Personal Residence Trust UDT (Bankr. D. Ore. Case No. 11-31975) on March 14, 2011. Judge Trish M. Brown presides over the case. The petitioners are represented by Robert S. Simon, Esq. at Robert S. Simon P.C. PENINSULA HOSPITAL: Involuntary Chapter 11 Case Summary ------------------------------------------------------- Alleged Debtor: Peninsula Hospital Center 51-15 Beach Channel Drive Far Rockaway, NY 11691 Bankruptcy Case No.: 11-47056 Involuntary Chapter 11 Petition Date: August 16, 2011 Court: U.S. Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Elizabeth S. Stong Petitioners' Counsel: Marilyn Cowhey Macron, Esq. MACRON & COWHEY 257 Beach 116th Street Rockaway Park, NY 11694 Tel: (718) 474-0111 E-mail: marilyn@macroncowhey.com Creditors who signed the Chapter 11 petition: Petitioners Nature of Claim Claim Amount ----------- --------------- ------------ Wayne S. Dodakian Goods Bought for $495 77 Oakland Avenue Debtor New Britian, CT 06053 Vinod Sinha Goods Sold and $78,709 Total MedBiz Delivered 49 Piermont Avenue Hewlett, NY 11557 Shannon Gerardi Goods Sold and $48,000 Advanced Seamless Gutters Delivered 32-30 Fulton Avenue Oceanside, NY 11572 PILGRIM'S PRICE: S&P Lowers Corporate Credit Rating to 'B' ---------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Greely, Colo.-based Pilgrim's Pride Corp., including the corporate credit rating to 'B' from 'BB-'. "At the same time we lowered the issue rating on the company's $500 million senior unsecured notes due 2018 to 'B-' (one notch below the corporate credit rating), and revised the recovery rating to '5', indicating our expectation for modest recovery (10%-30%) of principal and unpaid interest in the event of a payment default, from '4'. The outlook is developing. Pilgrim's Pride had about $1.5 billion of reported debt outstanding as of June 26, 2011, including a $50 million note payable to JBS Holdings Inc.," S&P related. "The downgrade reflects our opinion that higher feed costs in the company's core chicken segment together with weaker pricing (primarily the result of an oversupply of chicken inventories and weak breast and wing prices through the first half of fiscal 2011) will cause the company to generate an EBITDA loss in fiscal 2011," said Standard & Poor's credit analyst Christopher Johnson. "We base these projections on our assumption that the company will incur double-digit grain inflation in its chicken raising operations in 2011, and that weaker pricing will not fully offset the increased grain costs." The developing outlook reflects the possibility of a lower rating if the currently weak operating fundamentals persist in 2012, while at the same time recognizing that the company has adequate liquidity to operate until well into 2012, allowing the company to return to profitability if poultry market conditions improve (which could then result in a higher rating). PITTSBURGH CORNING: Court to Revisit Plan Ruling in September ------------------------------------------------------------- The Bankruptcy Court in the Chapter 11 case of Pittsburgh Corning Corp. will hold a hearing in September 2011 to consider a motion for reconsideration filed by various parties on the Court's order issued June 16, 2011, denying confirmation of the amended plan of reorganization filed in 2009. The Plan filed Jan. 29, 2009, was aimed to address the issues raised by the Court when it denied confirmation of an earlier Plan version. The Court's memorandum opinion accompanying the June 2011 order rejected some objections to the 2009 Amended PCC Plan and made suggestions regarding modifications to the 2009 Amended PCC Plan that would allow the Plan to be confirmed. The Troubled Company Reporter ran a story on the June 2011 decision in its June 20, 2011 issue. A report on the Motion to Reconsider was published in the July 5 issue. Corning Inc. said in papers filed with the Securities and Exchange Commission that it is considering the submission, possibly jointly with other relevant parties, of specific plan modifications suggested in the Court's opinion. About Pittsburgh Corning Pittsburgh Corning Corporation filed for Chapter 11 bankruptcy protection (Bankr. W.D. Pa. Case No. 00-22876) on April 16, 2000, to address numerous claims alleging personal injury from exposure to asbestos. At the time of the bankruptcy filing, there were about 11,800 claims pending against the Company in state court lawsuits alleging various theories of liability based on exposure to Pittsburgh Corning's asbestos products and typically requesting monetary damages in excess of US$1 million per claim. The Hon. Judith K. Fitzgerald presides over the case. Reed Smith LLP serves as counsel and Deloitte & Touche LLP as accountants to the Debtor. The United States Trustee appointed a Committee of Unsecured Trade Creditors on April 28, 2000. The Bankruptcy Court authorized the retention of Leech, Tishman, Fuscaldo & Lampl, LLC, as counsel to the Committee of Unsecured Trade Creditors, and Pascarella & Wiker, LLP, as financial advisor. The U.S. Trustee also appointed a Committee of Asbestos Creditors on April 28, 2000. The Bankruptcy Court authorized the retention of these professionals by the Committee of Asbestos Creditors: (i) Caplin & Drysdale, Chartered as Committee Counsel; (ii) Campbell & Levine as local counsel; (iii) Anderson Kill & Olick, P.C. as special insurance counsel; (iv) Legal Analysis Systems, Inc., as Asbestos-Related Bodily Injury Consultant; (v) defunct firm, L. Tersigni Consulting, P.C. as financial advisor, and (vi) Professor Elizabeth Warren, as a consultant to Caplin & Drysdale, Chartered. On Feb. 16, 2001, the Court approved the appointment of Lawrence Fitzpatrick as the Future Claimants' Representative. The Bankruptcy Court authorized the retention of Meyer, Unkovic & Scott LLP as his counsel, Young Conaway Stargatt & Taylor, LLP as his special counsel, and Analysis, Research and Planning Corporation as his claims consultant. In 2003, a plan of reorganization was agreed to by various parties-in-interest, but, on Dec. 21, 2006, the Bankruptcy Court issued an order denying the confirmation of that plan, citing that the plan was too broad in addressing independent asbestos claims that were not associated with Pittsburgh Corning. Corning Inc. and PPG each own 50% of the capital stock of Pittsburgh Corning. PLATINUM STUDIOS: Delays Filing of Quarterly Report on Form 10-Q ---------------------------------------------------------------- Platinum Studios, Inc., 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. The Company is in the process of compiling information for the quarter, all of which has not yet been received. About Platinum Studios Los Angeles, Calif.-based Platinum Studios, Inc., controls a library consisting of more than 5,000 characters and is engaged principally as a comics-based entertainment company adapting characters and storylines for production in film, television, publishing and all other media. The Company reported a net loss of $9.94 million on $2.27 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $3.38 million on $292,940 of revenue during the prior year. The Company's balance sheet at March 31, 2011, showed $10.34 million in total assets, $27.63 million in total liabilities, all current, and a $17.29 million total shareholders' deficit. The Company is also delinquent in payment of $120,026 for payroll taxes as of March 31, 2011, and in default of certain of its short term notes payable. These matters raise substantial doubt about the Company's ability to continue as a going concern. As reported by the TCR on April 21, 2011, HJ Associates & Consultants, LLP, in Salt Lake City, Utah, 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 from operations which have resulted in an accumulated deficit. PROFESSIONAL VETERINARY: Has Until Nov. 13 to Solicit Plan Votes ---------------------------------------------------------------- The Hon. Timothy J. Mahoney of the U.S. Bankruptcy Court for the District of -- extended until Nov. 13, 2011, Professional Veterinary Products, Ltd.'s exclusive period to solicit acceptances for the proposed Chapter 11 Plan. The Plan As reported in the Troubled Company Reporter on Dec. 29, 2010, the Debtors and the Official Committee of Unsecured Creditors submitted a proposed Plan of Liquidation and an explanatory Disclosure Statement. According to the Disclosure Statement, the Plan will facilitate the final liquidation of the Debtors' estates and the distribution of the proceeds obtained therefrom to holders of allowed claims. Upon the Effective Date, any and all remaining assets of the Debtors and their estates, including (a) all Unencumbered assets and (b) all cash, will be transferred to, and vest in, the Liquidating Trust, subject to any lien that is not waived, released or discharged on the Effective Date of the Plan; all assets will constitute the Trust Estate, subject to those liens. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/PROFESSIONALVETERINARY_DS.pdf 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 August 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. QUALTEQ INC: Meeting to Form Creditors Committee on Aug. 25 ----------------------------------------------------------- Roberta DeAngelis, United States Trustee for Region 3, will hold an organizational meeting on August 25, 2011, at 10:00 a.m. in the bankruptcy case of QualTeq, Inc. The meeting will be held at: United States Trustee's Office J. Caleb Boggs Federal Building 844 King Street, Room 5209 Wilmington, DE 19801 The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' cases. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. About QualTeq, Inc. South Plainfield, New Jersey-based QualTeq, Inc., engages in the design, manufacture, and personalization of plastic cards in the United States. The company manufactures magnetic, contact, and dual interface smart cards. Qualteq Inc. and 17 affiliated companies filed Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12572) on Aug. 14, 2011. Eric Michael Sutty, Esq., and Jeffrey M. Schlerf, Esq., at Fox Rothschild LLP, serve as local counsel to the Debtors. K&L Gates LLP is the general bankruptcy counsel. Scouler & Company is the restructuring advisors. QualTeq estimated assets of up to $50 million and debts of up to $100 million as of the Chapter 11 filing. QUANTUM CORP: Files Form 10-Q, Incurs $5.2MM Fiscal Q1 Net Loss --------------------------------------------------------------- Quantum Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $5.22 million on $153.53 million of total revenue for the three months ended June 30, 2011, compared with a net loss of $2.69 million on $163.22 million of total revenue for the same period a year ago. 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 total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/S5S5Tr 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. 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. REAL ESTATE ASSOCIATES: Incurs $212,000 Net Loss in Second Quarter ------------------------------------------------------------------ Real Estate Associates Limited VII filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $212,000 on $0 of revenue for the three months ended June 30, 2011, compared with net income of $895,000 on $0 of revenue for the same period during the prior year. The Company also reported a net loss of $417,000 on $0 of revenue for the six months ended June 30, 2011, compared with net income of $672,000 on $0 of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $1.33 million in total assets, $21.03 million in total liabilities and a $19.70 million total partners' deficit. Going Concern The Partnership continues to generate recurring operating losses. In addition, the Partnership is in default on notes payable and related accrued interest payable that matured between December 1999 and December 2004. Eight of the Partnership's nineteen remaining investments involved purchases of partnership interests from partners who subsequently withdrew from the operating partnership. As of June 30, 2011, and Dec. 31, 2010, the Partnership is obligated for non-recourse notes payable of approximately $6,070,000 to the sellers of the partnership interests, bearing interest at 9.5 to 10 percent. Total outstanding accrued interest is approximately $14,930,000 and $14,649,000 at June 30, 2011, and Dec. 31, 2010, respectively. These obligations and the related interest are collaterized by the Partnership's investment in the local limited partnerships and are payable only out of cash distributions from the Local Limited Partnerships. Unpaid interest was due at maturity of the notes. Seven of the notes payable have matured and remain unpaid at June 30, 2011. In connection with the sale of Hampshire House, approximately $890,000 of sale proceeds were used at closing to repay one non- recourse note payable and associated accrued interest during the six months ended June 30, 2010. No such payments were made during the six months ended June 30, 2011. The Partnership entered into an agreement with the non-recourse note holder for five other Local Limited Partnerships with notes payable totaling approximately $2,329,000 and accrued interest of approximately $5,835,000 at June 30, 2011, in which the note holder agreed to forebear taking any action under these notes pending the purchase by the note holder of a series of projects including the properties owned by nine of the remaining Local Limited Partnerships. Management negotiated an extension of the maturity date on one note payable. The Partnership entered into an agreement with the non-recourse note holder for the remaining two Local Limited Partnerships in which the note holder agreed to forebear taking any action under these notes in order to permit the underlying properties of these Local Limited Partnerships to pursue refinancing of certain indebtedness owed to the respective housing authorities. Management is attempting to negotiate extensions of the maturity dates on these two notes payable. If the negotiations are unsuccessful, the Partnership could lose its investment in the Local Limited Partnerships to foreclosure. As a result, there is substantial doubt about the Partnership's ability to continue as a going concern. A full-text copy of the Form 10-Q is available for free at: http://is.gd/lFDcRg 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. ROCK HOLDINGS: S&P Withdraws 'B' LT Counterparty Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'B' long-term counterparty credit rating on Rock Holdings Inc. at the company's request. At the time of withdrawal, the outlook was stable. SALON MEDIA: Incurs $678,000 Net Loss in Second Quarter ------------------------------------------------------- Salon Media Group, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $678,000 on $1.01 million of net revenues for the three months ended June 30, 2011, compared with a net loss of $817,000 on $1.15 million of net revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $1.65 million in total assets, $11.27 million in total liabilities and a $9.62 million total stockholders' deficit. The Company reported a net loss attributable to common stockholders of $2.58 million on $4.57 million of net revenues for the year ended March 31, 2011, compared with a net loss attributable to common stockholders of $4.86 million on $4.29 million of net revenues during the prior year. Burr Pilger Mayer, Inc., in San Francisco, California, Salon's independent registered public accounting firm for the years ended March 31, 2009, 2010, and 2011, included a "going-concern" audit opinion on the consolidated financial statements for those years. As reported by the TCR on July 4, 2011, Burr Pilger expressed substantial doubt about the Company's ability to continue as a going concern following the fiscal 2011 results. The independent auditors noted that the Company has suffered recurring losses and negative cash flows from operations and has an accumulated deficit of $108.4 million at March 31, 2011. As a result of the "going-concern" opinions, Salon's stock price and investment prospects have been and will continue to be adversely affected, thus limiting financing choices and raising concerns about the realization of value on assets and operations. A full-text copy of the Form 10-Q is available for free at: http://is.gd/V29eK9 About Salon Media San Francisco, Calif.-based Salon Media Group (OTC BB: SLNM.OB) -- http://www.Salon.com/-- is an online news and social networking company and an Internet publishing pioneer. SHUBH HOTELS: Unite Here Wants Settlement Agreement Enforced ------------------------------------------------------------ The Hon. Jeffery A. Deller of the Bankruptcy Court for the Western District of Pennsylvania will convene a hearing on Sept. 6, 2011, at 10:00 a.m. to consider the request to enforce settlement agreement and compel Shubh Hotels Pittsburgh, LLC to pay. According to Unite Here Health, fka Hotel Employees & Restaurant Employees International Union Welfare Fund, the Debtor and Local 57 of the Pennsylvania Joint Board of Unite Here executed that certain agreement effective as of Oct. 6, 2006. The Trust Agreement has been adopted and incorporated in the Collective Bargaining Agreement. Unite Here told the Court that the Reorganized Debtor is not complying with the agreement by failure to pay the current rate charges and by failure to pay the amounts owed to the Health Fund pursuant to the audit performed. The Health Fund also requested payment of the additional amounts owed and that respondents be compelled to charge the appropriate rate going forward, including any future increased rates. The Health Fund's Claim as of the Effective Date is $1,445,596. The Health Fund has subsequently performed an audit and determined that the Reorganized Debtor owes $27,868 due to worker adjustments and rate increase. To date, the Health Fund has received no payment or otherwise received a response. Unite Here is represented by: BERNSTEIN LAW FIRM, P.C Lara E. Shipkovitz, Esq. Suite 2200, Gulf Tower 707 Grant Street Pittsburgh, PA 15219 Tel: (412) 456-8132 Fax: (412) 456-8254 E-mail: lshipkovitz@bernsteinlaw.com About Shubh Hotels Pittsburgh Boca Raton, Florida-based Shubh Hotels Pittsburgh, LLC, owns and operates the largest hotel in the city of Pittsburgh. For roughly 50 years, the Hotel operated as a Hilton franchise. Hilton terminated the Hilton Franchise Agreement by letter dated Sept. 1, 2010. Shubh Hotels Pittsburgh filed for Chapter 11 bankruptcy (Bankr. W.D. Pa. Case No. 10-26337) on Sept. 7, 2010, Judge Jeffery A. Deller presiding. The Debtor estimated its assets at $10 million to $50 million and debts at $50 million to $100 million. The Debtor is represented by David K. Rudov, Esq., at Rudov & Stein; and Scott M. Hare, Esq., as bankruptcy counsel. James R. Walsh was appointed as Chapter 11 Trustee on Feb. 7, 2011. He is represented by lawyers at his firm, Spence, Custer, Saylor, Wolfe & Rose. An Official Committee of Unsecured Creditors has been appointed in the case. The Creditor Committee is represented by The Law Office of Christopher A. Boyer and David W. Lampl, Esq. and John M. Steiner, Esq., at Leech Tishman Fuscaldo & Lampl LLC. The Committee retained Meridian Financial Advisors, Ltd., as its financial advisors. Pittsburgh Grand LLC -- an equity holder of Shubh Hotel Pittsburgh LLC -- and Dr. Kiran Patel, the principal of Pittsburgh Grand filed a Modified Second Amended Plan of Reorganization on April 6, 2011. On May 20, 2011, the Court confirmed the Modified Second Amended Chapter 11 Plan. The plan effective date was expected to occur on June 9, 2011. SIGNATURE STYLES: Court OKs Rosner as Committee's Del. Counsel -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized the Official Committee of Unsecured of Signature Styles LLC and its debtor-affiliates to retain The Rosner Law Group LLC as Delaware counsel to represent it and perform services for the Committee in connection with carrying out its duties and responsibilities under the Bankruptcy Code during the chapter 11 cases. The principal professionals and paraprofessionals designated to represent the Committee and the hourly rates they will charge on this matter are as follows: Frederick B. Rosner $375 Julia Klein $250 Frederick Sassler $150 The Committee assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Signature Styles Signature Styles LLC, owner of the Spiegel catalog, filed a Chapter 11 petition (Bankr. D. Del. Case No. 11-11733) on June 6, 2011, along with a deal to sell the business to affiliates of the current owners and lenders. New York-based Signature Styles, which filed for bankruptcy together with its affiliates, disclosed assets of $48.6 million and debt of $867.6 million. It purchased the Spiegel business for $21.7 million at a foreclosure sale in June 2009. Debt includes $37.2 million owing on a secured term loan and revolving credit. Unsecured debt totals $35.3 million, which include $9.8 million owing to trade suppliers and $23.2 million in customer obligations. The lenders and owners are funds affiliated with Patriarch Partners LLC. Christopher A. Ward, Esq., at Polsinelli Shughart PC, in Wilmington, Delaware, serves as counsel to the Debtor. Western Reserve Partners LLC serves as investment bankers. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. A fund affiliated with Patriarch Partners LLC has an agreement to buy the business in return for the assumption of specified debt, including $30 million owing on the term loan and revolving credit. The buyer also will honor some customer obligations. The stalking-horse purchase agreement requires approval of bidding procedures by July 7 and approval of a sale by Aug. 4. Roberta A. Deangelis, United States Trustee for Region 3, under 11 U.S.C. SEC 1102(a) and (b), appointed the following amended unsecured creditors who are willing to serve on the Official Committee of Unsecured Creditors of Signature Styles LLC. SIGNATURE STYLES: Court Approves FTI as Panel's Financial Advisor ----------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized the Official Committee of Unsecured of Signature Styles LLC and its debtor-affiliates to retain FTI Consulting, Inc., as financial advisor. According to the Committee, the services of FTI are deemed necessary to enable the Committee to assess and monitor the efforts of the Debtors and their professional advisors to maximize the value of its estates. Further, FTI is well qualified and able to represent the Committee in a cost-effective, efficient, and timely manner. Among other things, the firm will assist in the participation in and review and monitoring of the asset sale process, including, but not limited to an assessment of the adequacy of the marketing process, completeness of any buyer lists, review and quantifications of any bids and other services deemed necessary by the Committee. The customary hourly rates, subject to periodic adjustments, charged by FTI professionals anticipated to be assigned to this case are as follows: Senior Managing Directors $780-895 Directors/Managing Directors $560-745 Consultants/Senior Consultants $280-530 Administration/Associates $115-230 The Committee assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Signature Styles Signature Styles LLC, owner of the Spiegel catalog, filed a Chapter 11 petition (Bankr. D. Del. Case No. 11-11733) on June 6, 2011, along with a deal to sell the business to affiliates of the current owners and lenders. New York-based Signature Styles, which filed for bankruptcy together with its affiliates, disclosed assets of $48.6 million and debt of $867.6 million. It purchased the Spiegel business for $21.7 million at a foreclosure sale in June 2009. Debt includes $37.2 million owing on a secured term loan and revolving credit. Unsecured debt totals $35.3 million, which include $9.8 million owing to trade suppliers and $23.2 million in customer obligations. The lenders and owners are funds affiliated with Patriarch Partners LLC. Christopher A. Ward, Esq., at Polsinelli Shughart PC, in Wilmington, Delaware, serves as counsel to the Debtor. Western Reserve Partners LLC serves as investment bankers. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. A fund affiliated with Patriarch Partners LLC has an agreement to buy the business in return for the assumption of specified debt, including $30 million owing on the term loan and revolving credit. The buyer also will honor some customer obligations. The stalking-horse purchase agreement requires approval of bidding procedures by July 7 and approval of a sale by Aug. 4. Roberta A. Deangelis, United States Trustee for Region 3, under 11 U.S.C. SEC 1102(a) and (b), appointed the following amended unsecured creditors who are willing to serve on the Official Committee of Unsecured Creditors of Signature Styles LLC. SIMMONS FOODS: S&P Affirms 'B-' Corporate Credit Rating ------------------------------------------------------- Standard & Poor's Ratings Services affirmed its ratings on Siloam Springs, Ark.-based Simmons Food Inc., including its 'B-' corporate credit rating. "At the same time we removed all ratings from CreditWatch with developing implications, where they were placed on May 27, 2011, following the company's receipt of a forbearance agreement from its lenders. The outlook is negative, primarily reflecting our concerns about covenant cushion tightening in the coming quarters. Simmons Foods had about $450 million of outstanding debt at July 2, 2011," S&P said. "The rating affirmation and negative outlook reflect our opinion that current domestic poultry market conditions will likely impede the company's ability to improve its EBITDA sufficiently to maintain adequate cushion on its financial covenants over the next year," S&P related. "Although we believe the company's business diversification, particularly in private-label pet food manufacturing, will shield the business from significant declines in consolidated EBITDA, we believe the current weak poultry pricing environment and high grain inflation will likely result in continued modest trailing- 12-month EBITDA declines and the possibility of EBITDA covenant cushion of less than 10% in the coming quarters," said Standard & Poor's credit analyst Christopher Johnson. "Moreover, we believe the current operating outlook and a year-over-year negative working capital impact will result in negative full-year free cash flow, hampering the company's ability to repay debt and deleverage as we had originally anticipated." "Standard & Poor's estimates that the ratio of adjusted debt to EBITDA at fiscal year-end 2011 will remain close to current levels for the 12 months ended July 2, 2011, of 6.2x, which would be substantially higher than our original expectation that adjusted debt to EBITDA would improve to about 4x by fiscal year-end 2011," S&P said. "The ratings on Simmons Foods reflect our opinion that the company has a weak business risk profile and a highly leveraged financial profile. Simmons Foods' business risk profile reflects its modest, albeit well-established, market position as a vertically integrated chicken processor, and the current unfavorable poultry industry conditions that only very recently have begun to show modest signs of improvement, including lower egg sets and broiler placements, and possible industrywide production cuts. Still, we believe the company's expansion of its private-label pet food operations, both organically and via acquisitions, will further improve product diversification and reduce future earning volatility. Although integration synergies may improve future earnings performance, we believe higher feed costs and still-weak domestic poultry pricing will limit EBITDA growth in fiscal 2011," S&P stated. "The negative outlook reflects our belief that the weak operating performance in the company's key poultry segment will result in a tight covenant cushion in the coming quarters," S&P said. SKYSHOP LOGISTICS: Incurs $1.3 Million Net Loss in Second Quarter ----------------------------------------------------------------- SkyShop Logistics, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $1.34 million on $1.71 million of net revenues for the three months ended June 30, 2011, compared with a net loss of $879,773 on $2.31 million of net revenues for the same period during the prior year. The Company also reported a net loss of $2.45 million on $3.35 million of net revenues for the six months ended June 30, 2011, compared with a net loss of $1.68 million on $3.82 million of net revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $4.33 million in total assets, $4.46 million in total liabilities and a $129,050 total stockholders' deficit. As reported in the TCR on March 23, 2011, Morrison, Brown, Argiz and Farra, LLC, in Miami, Fla., expressed substantial doubt about SkyShop Logistics' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered recurring losses from operations, has a deficiency in working capital and has a net capital deficiency. A full-text copy of the Form 10-Q is available for free at: http://is.gd/dLYu8D About Skyshop Logistics Miami, Fla.-based SkyShop Logistics, Inc., is the largest private mail network in the Latin American-Caribbean region, handling mail and parcels from U.S. and European postal administrations, mail consolidators, major publishers, international mailers, e-tailers and financial institutions that require time-defined and reliable delivery of their mail, including magazines, catalogs and parcels. The Company provides Internet merchants the ability to expand their markets internationally without the inherent risks of shipping parcel post to foreign buyers or the use of expensive express couriers. SMART ONLINE: Incurs $800,000 Net Loss in Second Quarter -------------------------------------------------------- Smart Online, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $800,257 on $111,072 of total revenues for the three months ended June 30, 2011, compared with a net loss of $487,999 on $259,718 of total revenues for the same period a year ago. The Company also reported a net loss of $1.78 million on $249,809 of total revenues for the six months ended June 30, 2011, compared with a net loss of $1.40 million on $623,618 of total revenues for the same period during the previous year. The Company's balance sheet at June 30, 2011, showed $1.28 million in total assets, $22.34 million in total liabilities and a $21.06 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/qdfFgW About Smart Online Headquartered in Durham, North Carolina, Smart Online, Inc. (OTC BB: SOLN) -- http://www.smartonline.com/-- develops and markets software products and services targeted to small businesses that are delivered via a Software-as-a-Service (SaaS), or SaaS, model. The Company also provides Web site consulting services, primarily in the e-commerce retail industry products and services. The Company reported a net loss of $3.95 million on $1.03 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $9.54 million on $1.42 million of total revenue during the prior year. As reported by the TCR on April 4, 2011, Cherry, Bekaert & Holland, LLP, in Raleigh, North Carolina, noted that the Company has suffered recurring losses from operations and has a working capital deficiency as of Dec. 31, 2010. These conditions, according to the independent auditors, raise substantial doubt about the Company's ability to continue as a going concern, the auditors said. SMART POOLS: Files For Chapter 7 Bankruptcy Protection ------------------------------------------------------ Steve Green at Vegas Inc. reports that a Chapter 7 liquidation filing was made Tuesday in U.S. Bankruptcy Court for Nevada by Smart Pools Inc., a company managed by David Klohr. The filing disclosed no assets and nearly $540,000 in debt. The report says creditors include vendors such as pool supply companies. The company filing said 2010 business income of about $589,000 was down from $1.5 million in 2009. SMART-TEK SOLUTIONS: Delays Filing of Quarterly Report ------------------------------------------------------ Smart-Tek Solutions Inc. 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. The Company said The review of the financials by the outside auditors will be completed on or about Aug. 17, 2011. About Smart-tek Solutions Newport Beach, Calif.-based Smart-tek Solutions Inc. has two business lines. Through its wholly owned subsidiary Smart-Tek Communications Inc. the Company specializes in the design and development of Radio Frequency Identification (RFID) integration, monitoring and tracking solutions to meet industry demands. Through its wholly owned subsidiary Smart-Tek Automated Services Inc. the Company provides professional employer organization services. John Kinross-Kennedy, of Irvine, California, expressed substantial doubt about the Company's ability to continue as a going concern. Mr. Kinross-Kennedy noted that that the Company has suffered recurring losses until the latest fiscal year, and has a working capital deficiency of $994,278 and a stockholders' deficiency of $438,164 at June 30, 2010. The Company's balance sheet at March 31, 2011, showed $4.31 million in total assets, $3.17 million in total liabilities, all current, and $1.13 million in total stockholders' equity. SOVRAN LLC: Court OKs GVA Kidder as Commercial Real Estate Broker ----------------------------------------------------------------- The U.S. Bankruptcy COURT for the Western District of Washington has approved Sovran LLC's application, ex parte, for entry of a temporary order approving the employment of GVA Kidder Mathews as commercial real estate broker for the Debtor and the Estate with respect to the marketing and sale of Debtor's real property. The Debtor is employing GVA Kidder Mathews as its commercial real estate broker on behalf of the Debtor and the estate for the purpose of the listing the Debtor's real property in connection with the Debtor's efforts to sell the property in this pending chapter 11. Kidder Mathews is a licensed broker for commercial real estate under Washington law. The Debtor has selected Kidder Mathews because the real estate agents therein have considerable experience in connection with the Debtor's real estate interests and have advised the Debtor with respect to such matters prior to the filing of this chapter 11 case. The Debtor believes that Kidder Mathews is well qualified to represent it in connection with the Debtor's real estate needs. Kidder Mathews is not a prepetition creditor of the Debtor. The Debtor and Kidder Mathews have entered into a listing agreement setting forth the terms and conditions of Kidder Mathews' employment as broker. The Listing Agreement provides for a 10% commission on the first $5,000,000 of the total sales price plus a 6% commission of the total sales price over $5,000,000. Kidder Mathews typically shares any commission with a selling broker in accordance with industry practice. The Debtor has agreed that Kidder Mathews should be paid all professional compensation allowed by the Bankruptcy Court. Sovran LLC, filed a Chapter 11 petition (Bankr. W.D. Wash. Case No. 11-45107) on June 23, 2011. Richard G. Birinyi, Esq., at Bullivant Houser Bailey PC, in Seattle, Washington, serves as counsel. SULPHCO INC: Reports $424,000 Net Income in Second Quarter ---------------------------------------------------------- SulphCo, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income of $424,476 on $0 of sales for the three months ended June 30, 2011, compared with a net loss of $2.12 million on $0 of sales for the same period during the prior year. The Company also reported a net loss of $1.33 million on $0 of sales for the six months ended June 30, 2011, compared with a net loss of $4.48 million on $0 of sales for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $1.25 million in total assets, $1.59 million in total liabilities and a $341,612 total stockholders' deficit. The Company has no revenues, has incurred substantial losses from operations and has an accumulated deficit of approximately $166.4 million. These factors raise substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company's ability to implement its business plan and raise additional funds. In the event the Company is unable to secure additional financing or to otherwise execute on other strategic arrangements, including the potential sale of its technology, the Company may have to take additional actions, up to and including a Chapter 7 bankruptcy filing. In the June 3, 2011, edition of the TCR, Dow Jones' DBR Small Cap reports that SulphCo Inc. said it's running out of cash and might have to launch a bankruptcy filing if it can't nab new financing "in the immediate future." SulphCo Inc. is an energy technology company. A full-text copy of the Form 10-Q is available for free at: http://is.gd/ZwQRcm About SulphCo, Inc. Houston-based SulphCo -- http://www.sulphco.com/-- has developed a patented safe and economic process employing ultrasound technology to alter the molecular structure of liquid petroleum streams. The overall process is designed to "upgrade" the quality of liquid petroleum streams by modifying and reducing the sulfur and nitrogen content to make those compounds easier to process using conventional techniques, as well as reducing the density and viscosity. TALON INTERNATIONAL: Reports $656,000 Net Income in Second Qtr. --------------------------------------------------------------- Talon International, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income of $656,325 on $12.75 million of net sales for the three months ended June 30, 2011, compared with net income of $646,676 on $14.97 million of net sales for the same period during the prior year. The Company also reported net income of $255,397 on $21.98 million of net sales for the six months ended June 30, 2011, compared with a net loss of $200,967 on $23.20 million of net sales for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $17.01 million in total assets, $11.18 million in total liabilities, $19.15 million in series B Convertible Preferred Stock, and a $13.33 million total stockholders' deficit. "The sales decline for the second quarter and first half of this year was disappointing," noted Lonnie Schnell, Talon's CEO. "Our customers trimmed their unit purchases this quarter directly impacting our peak season sales, reflecting their caution about consumer demand in the fall and holiday season." A full-text copy of the Form 10-Q is available for free at: http://is.gd/SfdszD About Talon International Woodland Hills, Calif.-based Talon International, Inc. (OTC BB: TALN) -- http://www.talonzippers.com/-- is a global supplier of apparel fasteners, trim and interlining products to manufacturers of fashion apparel, specialty retailers, mass merchandisers, brand licensees and major retailers. Talon manufactures and distributes zippers and other fasteners under its Talon(R) brand, known as the original American zipper invented in 1893. Talon also designs, manufactures, engineers, and distributes apparel trim products and specialty waistbands under its trademark names, Talon, Tag-It and TekFit, to more than 60 apparel brands and manufacturers including Wal-Mart, Kohl's, J.C. Penney, Victoria's Secret, Tom Tailor, Abercrombie and Fitch, Polo Ralph Lauren, Phillips-Van Heusen, Reebok and Juicy Couture. Talon has offices and facilities in the United States, United Kingdom, Hong Kong, China, and Bangladesh. The Company reported a net loss of $1.46 million on $41.46 million of net sales for the year ended Dec. 31, 2010, compared with a net loss of $2.69 million on $38.67 million of net sales during the prior year. TAO-SAHI: Hires Jackson Walker as Counsel, Bolton as Appraiser -------------------------------------------------------------- The Honorable Ronald B. King has approved the applications of Tao- Sahi, LP to employ (i) Bolton Real Estate Consultants, Ltd. as its appraiser, and (ii) Jackson Walker L.L.P. as its counsel, nunc pro tunc to the Petition Date. No further compensation is to be paid to Bolton Real Estate except pursuant to further Court order. Tao-Sahi LP owns the Holiday Inn NW - Seaworld in San Antonio, Texas. Tao-Sahi has no employees. The Hotel is managed under contract with an independent management company. Tao-Sahi filed for Chapter 11 bankruptcy (Bankr. W.D. Tex. Case No. 11-52027) on June 7, 2011, to stay foreclosure of the hotel and restructure its debts. Judge Ronald B. King presides over the case. Marvin E. Sprouse, III, Esq., at Jackson Walker LLP, serves as bankruptcy counsel. Bolton Real Estate Consultants, Ltd., serves as the Debtor's appraiser. In its Schedules, the Debtor disclosed $24,735,728 in assets and $20,584,065 in debts. The petition was signed by Clayton Isom, CEO of Tao Development Group, LLC, general partner. S2 Acquisition LLC, an opportunity fund associated with Square Mile Capital Management in New York, acquired the hotel debt from the failed Silverton Bank. S2 Acquisition is represented by Tom Rogers, Esq., and Shari L. Heyan, Esq., at Greenberg Traurig. TBS INTERNATIONAL: Incurs $15.1 Million Net Loss in Second Qtr. --------------------------------------------------------------- TBS International plc reported a net loss of $15.15 million on $97.13 million of total revenue for the three months ended June 30, 2011, compared with a net loss of $10.49 million on $111.24 million of total revenue for the same period during the prior year. The Company also reported a net loss of $33.11 million on $186.96 million of total revenue for the six months ended June 30, 2011, compared with a net loss of $18.33 million on $211.31 million of total revenue for the same period a year ago. The Company's selected balance sheet data at June 30, 2011, showed $662.84 million in total assets, $336.38 million in total debt, and $268.43 million in total shareholders' equity. 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/WsQy51 A full-text copy of the press release announcing the financial results is available for free at http://is.gd/Mwqxxo About TBS International plc Dublin, Ireland-based TBS International plc (NASDAQ: TBSI) -- http://www.tbsship.com/-- provides worldwide shipping solutions to a diverse client base of industrial shippers through its Five Star Service: ocean transportation, projects, operations, port services and strategic planning. The TBS shipping network operates liner, parcel and dry bulk services, supported by a fleet of multipurpose tweendeckers and handysize/handymax bulk carriers, including specialized heavy-lift vessels and newbuild tonnage. TBS has developed its franchise around key trade routes between Latin America and China, Japan and South Korea, as well as select ports in North America, Africa, the Caribbean and the Middle East. The Company reported a net loss of US$247.76 million on US$411.83 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of US$67.04 million on US$302.51 million of total revenue during the prior year. PricewaterhouseCoopers LLP expressed substantial doubt about the Company's ability to continue as a going concern. PwC believes that the Company will not be in compliance with the financial covenants under its credit facilities during 2011, which under the agreements would make the debt callable. According to PwC, this has created uncertainty regarding the Company's ability to fulfill its financial commitments as they become due. As reported in the TCR on Feb. 8, 2011, TBS International on Jan. 31, 2011, announced that it had entered into amendments to its credit facilities with all of its lenders, including AIG Commercial Equipment, Commerzbank AG, Berenberg Bank and Credit Suisse and syndicates led by Bank of America, N.A., The Royal Bank of Scotland plc and DVB Group Merchant Bank (the "Credit Facilities"). The amendments restructure the Company's debt obligations by revising the principal repayment schedules under the Credit Facilities, waiving any existing defaults, revising the financial covenants, including covenants related to the Company's consolidated leverage ratio, consolidated interest coverage ratio and minimum cash balance, and modifying other terms of the Credit Facilities. The Company currently expects to be in compliance with all financial covenants and other terms of the amended Credit Facilities through maturity. As a condition to the restructuring of the Company's credit facilities, three significant shareholders who also are key members of TBS' management agreed on Jan. 25, 2011, to provide up to US$10 million of new equity in the form of Series B Preference Shares and deposited funds in an escrow account to facilitate satisfaction of this obligation. In partial satisfaction of this obligation, on Jan. 28, 2011, these significant shareholders purchased an aggregate of 30,000 of the Company's Series B Preference Shares at US$100 per share directly from TBS in a private placement. TELKONET INC: Reports $113,000 Net Income in Second Quarter ----------------------------------------------------------- Telkonet, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income of $113,189 on $2.92 million of total revenue for the three months ended June 30, 2011, compared with net income of $483,566 on $3.18 million of total revenue for the same period a year ago. The Company also reported net income of $1.09 million on $5.41 million of total revenue for the six months ended June 30, 2011, compared with a net loss of $188,301 on $5.76 million of total revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $16.58 million in total assets; $4.18 million in total liabilities; $968,701 in redeemable preferred stock, Series A; $1.36 million in redeemable preferred stock, Series B; and $10.07 million in total stockholders' equity. Telkonet's president and chief executive officer, Jason Tienor, said, "We're very pleased with our operational performance which drove quarterly cash flow from operations. We continue to deliver significant ongoing cost savings and generate strong cash flow. We continue to see strong business demand across all of our products, from individual customers to strategic relationships with enterprise Energy Service Companies (ESCOs). Right now we're very focused on the launch of our EcoGuard product and the continued market growth and penetration of our EcoSmart Suite. We're intent on providing our customers seamless and powerful ways of curbing energy consumption and our second quarter platform and inventory investments have positioned us securely for long-term growth." A full-text copy of the Form 10-Q is available for free at: http://is.gd/9ozQy2 About Telkonet Milwaukee, Wisconsin-based Telkonet, Inc. is a clean technology company that develops and manufactures proprietary energy efficiency and smart grid networking technology. The Company reported a net loss attributable to common stockholders of $1.77 million on $11.26 million of total revenue for the year ended Dec. 31, 2010, compared with net income attributable to common stockholders of $1.06 million on $10.52 million of total revenue during the prior year. RBSM LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. RBSM noted that the Company has incurred significant operating losses in current year and also in the past. TELVUE CORPORATION: Incurs $824,000 Net Loss in Second Quarter -------------------------------------------------------------- TelVue Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $824,772 on $1.21 million of revenue for the three months ended June 30, 2011, compared with a net loss of $774,481 on $971,689 of revenue for the same period during the prior year. The Company also reported a net loss of $1.62 million on $2.29 million of revenue for the six months ended June 30, 2011, compared with a net loss of $1.64 million on $1.86 million of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $1.73 million in total assets, $25.45 million in total liabilities and a $23.72 million stockholders' deficit. ParenteBeard LLC, in Huntingdon Valley, Pa., expressed substantial doubt about TelVue'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 from operations and has a net accumulated deficit. Since Nov. 2, 1989, TelVue has funded its expansion and operating deficit from the proceeds of the sale of shares of TelVue's common stock and Class A Redeemable Convertible Preferred Stock to Mr. Lenfest, TelVue's majority stockholder, and from loans from Mr. Lenfest. As of June 30, 2011, TelVue had entered into eight Line of Credit Notes with Mr. Lenfest. The purpose of these Notes is to fund expansion and operating deficits. A full-text copy of the Form 10-Q is available for free at: http://is.gd/t3anoC About TelVue Corporation Mt. Laurel, N.J.-based TelVue Corporation is a broadcast technology company that specializes in playback, automation and workflow solutions for public, education and government ("PEG") television stations; cable, telephone company ("Telco") and satellite television providers; K-12 and higher education institutions; and professional broadcasters. TERRESTAR CORP: Echostar Corp. to Get $675-Mil. from Sale --------------------------------------------------------- Greg Avery at Denver Business Journal reports that Dish Network Corp. isn't the only Charlie Ergen company with reason to eagerly anticipate completion of the satellite broadcaster's $1.375 billion purchase of TerreStar Networks . According to the report, about half the money -- $675 million -- that Dish Network will spend buying TerreStar out of bankruptcy is poised to go to EchoStar Corp., the sister company to Dish Network. Mr. Avery notes EchoStar, based in Arapahoe County, lined up last year to buy TerreStar, acquiring half its debt and negotiating a debt-for-equity swap that would bring TerreStar out of Chapter 11 bankruptcy. That deal fell apart in February, but Douglas County- based Dish Network emerged a few weeks later as TerreStar's successful stalking horse bidder. The report notes it beat out others vying for TerreStar by structuring a bid that paid back debtholders in full. The report relates that EchoStar expects the deal closing will repay its $675 million investment in TerreStar debt, according to an Aug. 9 filing to the Securities & Exchange Commission. But the filing also calls the investment in TerreStar debt highly speculative and said there's no guarantee the debt will be repaid. EchoStar and Dish Network had been part of the same company prior to early 2008. EchoStar remains Dish Network's hardware supplier. Ergen is founder, chairman and controlling shareholder of both companies. Dish Network received a bankruptcy judge's approval to buy TerreStar Networks on July 7. The satellite broadcaster is waiting for the Federal Communications Commission to approve the transfer of TerreStar's satellite broadcast licenses. It's not clear how long that might take, or whether the FCC will raise concerns. About TerreStar Networks TerreStar Corporation and TerreStar Holdings, Inc., filed voluntary Chapter 11 petitions with the U.S. Bankruptcy Court for the Southern District of New York on Feb. 16, 2011. TSC's Chapter 11 filing joins the bankruptcy proceedings of TerreStar Networks Inc. and 12 other affiliates, which filed on Oct. 19, 2010. The October Chapter 11 cases are procedurally consolidated under TSN's Case No. 10-15446 under Judge Sean H. Lane. TSC is the parent company of each of the October Debtors. TSC has four wholly owned direct subsidiaries: TerreStar Holdings, Inc., TerreStar New York Inc., Motient Holdings Inc., and MVH Holdings Inc. TSC's case is jointly administered with the cases of seven of the October Debtors under the caption In re TerreStar Corporation, et al., Case No. 11-10612 (SHL). The seven Debtor entities who sought joint administration with TSC are TerreStar New York Inc., Motient Communications Inc., Motient Holdings Inc., Motient License Inc., Motient Services Inc., Motient Ventures Holdings Inc., and MVH Holdings Inc. TSC is a Delaware corporation whose main asset is the equity in non-Debtor TerreStar 1.4 Holdings LLC, which has the right to use a "1.4 GHz terrestrial spectrum" pursuant to 64 licenses issued by the Federal Communication Commission. TSC also has an indirect 89.3% ownership interest in TerreStar Network, Inc., which operates a separate and distinct mobile communications business. TerreStar Holdings is a Delaware corporation that directly holds 100% of the interests in 1.4 Holdings LLC. TerreStar Networks -- TSN -- the principal operating entity of TSC, developed an innovative wireless communications system to provide mobile coverage throughout the United States and Canada using satellite-terrestrial smartphones. The system, however, required an enormous amount of capital expenditures and initially produced very little in the way of revenue. TSN's available cash and borrowing capacity were insufficient to cover its funding; thus, forcing TSN to seek bankruptcy protection in October 2010. TSC estimated assets and debts of $100 million to $500million in its Chapter 11 petition. Ira S. Dizengoff, Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, in New York, serves as counsel for the TSC and TSN Debtors. Garden City Group is the claims and notice agent. Blackstone Advisory Partners LP is the financial advisor. The Garden City Group, Inc., is the claims and noticing agent in the Chapter 11 cases. Otterbourg Steindler Houston & Rosen P.C. is the counsel to the Official Committee of Unsecured Creditors formed in TSN's Chapter 11 cases. FTI Consulting, Inc., is the Committee's financial advisor. TerreStar has signed a contract to sell its business to Dish Network Corp. for $1.38 billion. TerreStar cancelled a June 30 auction because there were no competing bids submitted by the deadline. TERRESTAR CORP: Seeks Court OK for Execs. Compensation Program -------------------------------------------------------------- BankruptcyData.com reports that TerreStar Corporation filed with the U.S. Bankruptcy Court a motion for an order approving a management compensation program for three of its officers. The amount that will be paid to the key executives under the compensation program is capped at $500,000. The Court scheduled an Aug. 26, 2011, hearing on the matter. About TerreStar Corp. and TerreStar Networks TerreStar Corporation and TerreStar Holdings, Inc., filed voluntary Chapter 11 petitions with the U.S. Bankruptcy Court for the Southern District of New York on Feb. 16, 2011. TSC's Chapter 11 filing joins the bankruptcy proceedings of TerreStar Networks Inc. and 12 other affiliates, which filed on Oct. 19, 2010. The October Chapter 11 cases are procedurally consolidated under TSN's Case No. 10-15446 under Judge Sean H. Lane. TSC is the parent company of each of the October Debtors. TSC has four wholly owned direct subsidiaries: TerreStar Holdings, Inc., TerreStar New York Inc., Motient Holdings Inc., and MVH Holdings Inc. TSC's case is jointly administered with the cases of seven of the October Debtors under the caption In re TerreStar Corporation, et al., Case No. 11-10612 (SHL). The seven Debtor entities who sought joint administration with TSC are TerreStar New York Inc., Motient Communications Inc., Motient Holdings Inc., Motient License Inc., Motient Services Inc., Motient Ventures Holdings Inc., and MVH Holdings Inc. TSC is a Delaware corporation whose main asset is the equity in non-Debtor TerreStar 1.4 Holdings LLC, which has the right to use a "1.4 GHz terrestrial spectrum" pursuant to 64 licenses issued by the Federal Communication Commission. TSC also has an indirect 89.3% ownership interest in TerreStar Network, Inc., which operates a separate and distinct mobile communications business. TerreStar Holdings is a Delaware corporation that directly holds 100% of the interests in 1.4 Holdings LLC. TerreStar Networks -- TSN -- the principal operating entity of TSC, developed an innovative wireless communications system to provide mobile coverage throughout the United States and Canada using satellite-terrestrial smartphones. The system, however, required an enormous amount of capital expenditures and initially produced very little in the way of revenue. TSN's available cash and borrowing capacity were insufficient to cover its funding; thus, forcing TSN to seek bankruptcy protection in October 2010. TSC estimated assets and debts of $100 million to $500million in its Chapter 11 petition. Ira S. Dizengoff, Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, in New York, serves as counsel for the TSC and TSN Debtors. Garden City Group is the claims and notice agent. Blackstone Advisory Partners LP is the financial advisor. The Garden City Group, Inc., is the claims and noticing agent in the Chapter 11 cases. Otterbourg Steindler Houston & Rosen P.C. is the counsel to the Official Committee of Unsecured Creditors formed in TSN's Chapter 11 cases. FTI Consulting, Inc., is the Committee's financial advisor. TEXAS RANGERS: Tom Hicks Sued by Former Investors ------------------------------------------------- Bloomberg News, citing The Associated Press, said Tom Hicks was sued by former investors in the Texas Rangers who claim he used the baseball club to enrich himself at the team's expense while he was the owner. Mr. Hicks ignored team obligations and bought land for parking lots and roads, according to the complaint brought on behalf of the Rangers partnership by bankruptcy administrator Alan Jacobs, AP said. Mr. Hicks's actions left the Rangers insolvent, the former investors claim in the lawsuit filed in state court in Dallas, AP said. A spokeswoman for Mr. Hicks's company denied the allegations, AP said. About Texas Rangers Baseball Texas Rangers Baseball Partners owned and operated the Texas Rangers Major League Baseball Club, a professional baseball club in the Dallas/Fort Worth Metroplex. TRBP is a Texas general partnership, in which subsidiaries of HSG Sports Group LLC own a 100% stake. Controlled by Thomas O. Hicks, HSG also indirectly wholly-owns Dallas Stars, L.P., which owns and operates the Dallas Stars National Hockey League franchise. The Texas Rangers have had five owners since the club moved to Arlington in 1972. Mr. Hicks became the fifth owner in the history of the Texas Rangers on June 16, 1998. Texas Rangers Baseball Partners filed a Chapter 11 petition (Bankr. N.D. Tex. Case No. 10-43400) on May 24, 2010. The partnership filed simultaneously with the bankruptcy petition a Chapter 11 plan that contemplated the sale of the club to an entity formed by a group that includes the current President of the Texas Rangers, Nolan Ryan, and Chuck Greenberg, a sports lawyer and minor league club owner. In its petition, Texas Rangers Baseball Partners said it had both assets and debt of less than $500 million. Martin A. Sosland, Esq., at Weil, Gotshal & Manges LLP, served as bankruptcy counsel to the Debtor. Forshey & Prostok LLP was the conflicts counsel. Parella Weinberg Partners LP served as financial advisor. Major League Baseball was represented by Sandy Esserman, Esq., at Stutzman, Bromberg, Esserman & Plifka PC. Lenders to the Texas Rangers sought to force the baseball team's equity owners -- Rangers Equity Holdings, L.P. and Rangers Equity Holdings GP, LLC -- into bankruptcy court protection (Bankr. N.D. Tex. Case No. 10-43624 and 10-43625). The lenders, a group that includes investment funds Monarch Alternative Capital and Kingsland Capital Management, filed an involuntary bankruptcy petition on May 28, 2010 against the two companies. The two companies were not included in the May 24 Chapter 11 filing of TRBP. U.S. Bankruptcy Judge Stacey G.C. Jernigan on Aug. 5, 2010 confirmed the Debtor's Prepackaged Plan of Reorganization, as amended four times. The judge's confirmation order cleared the way for a group of Hall of Fame pitcher Nolan Ryan, and Pittsburgh sports attorney and minor-league team owner Charles Greenberg to purchase the Texas Rangers. The Ryan group paid $385 million in cash and assumed $208 million in liabilities. The Ryan group outbid Dallas Mavericks owner Mark Cuban at an auction. THORNBURG MORTGAGE: Countrywide, BofA Want Suit Moved to Calif. --------------------------------------------------------------- Bankruptcy Judge Duncan W. Keir on Aug. 16 signed off on a stipulation and order modifying briefing schedule and extending the defendants' time to respond to the amended complaint filed by Joel I. Sher -- the Chapter 11 Trustee for TMST Inc., formerly known as Thornburg Mortgage Inc., et al. -- and Zuni Investors, LLC. The amended complaint, filed April 29, 2011, is captioned Joel I. Sher, et ano. v. Countrywide Home Loans Inc., et ano., Adv. Proc. No. 11-00337 (Bankr. D. Md.). Defendant Countrywide Home Loans and Bank of America Corporation are seeking dismissal of the Complaint. Countrywide also has filed a motion to transfer venue of the adversary proceeding to the United States District Court for the Central District of California. The Defendants also have filed a motion to withdraw the reference of the Complaint. On July 29, 2011, the Plaintiffs filed an Amended Complaint for Breach of Contract, which, by superseding the Complaint, rendered the Defendants' motions to dismiss the Complaint moot. A copy of the Stipulation, dated Aug. 16, is available at http://is.gd/dUYPlqfrom Leagle.com. Attorneys for Zuni Investors are David J. Grais, Esq., Mark B. Holton, Esq., and Leanne M. Wilson, Esq. -- dgrais@graisellsworth.com mholton@graisellsworth.com and lwilson@graisellsworth.com -- at Grais & Ellsworth LLP, in New York. Attorneys for Bank of America Corporation are Jonathan Rosenberg, Esq., and William J. Sushon -- jrosenberg@omm.com and wsushon@omm.com -- O'Melveny & Myers LLP in New York. Attorneys for Countrywide Home Loans, Inc., are Lawrence D. Coppel, Esq. -- lcoppel@gfrlaw.com -- at Gordon, Feinblatt, Rothman, Hoffberger & Hollander LLC in Baltimore, Maryland; Joseph F. Yenouskas, Esq. -- jyenouskas@goodwinprocter.com -- at Goodwin Procter LLP, in Washington DC; and Brian E. Pastuszenski, Esq., John J. Falvey, Jr., Esq., and Matthew G. Lindenbaum, Esq. -- bpastuszenski@goodwinprocter.com jfalvey@goodwinproctor.com and mlindenbaum@goodwinproctor.com -- at Goodwin Procter in Boston, Massachusetts. As reported by the Troubled Company Reporter on May 3, 2011, the TMST Trustee sued Wall Street banks for $2.2 billion, alleging they engaged in series of "collusive" and "predatory" schemes that eventually drove Thornburg into bankruptcy. The defendants include: * J.P. Morgan Chase & Co., * Citigroup Inc., * Goldman Sachs Group Inc., * Bank of America, * Countrywide Home Loans, * subsidiaries of Barclays PLC, * Credit Suisse Group, * Royal Bank of Scotland Group PLC, and * UBS AG In the suit against BofA and Countrywide, the Trustee contends Countrywide misrepresented the nature of hundreds of home loans securitized and sold to Thornburg in 2006; and that Bank of America, now Countrywide's parent, has "engaged in an elaborate corporate shell game" intended to shed Countrywide's liabilities. The Trustee is asking the bankruptcy judge overseeing the Thornburg case to force the bank to repurchase the loans. About Thornburg Mortgage Based in Santa Fe, New Mexico, Thornburg Mortgage Inc. (NYSE: TMA) -- http://www.thornburgmortgage.com/-- was a single-family residential mortgage lender focused principally on prime and super-prime borrowers seeking jumbo and super-jumbo adjustable rate mortgages. It originated, acquired, and retained investments in adjustable and variable rate mortgage assets. Its ARM assets comprised of purchased ARM assets and ARM loans, including traditional ARM assets and hybrid ARM assets. Thornburg Mortgage and its four affiliates filed for Chapter 11 bankruptcy (Bankr. D. Md. Lead Case No. 09-17787) on May 1, 2009. Thornburg changed its name to TMST, Inc. Judge Duncan W. Keir is handling the case. David E. Rice, Esq., at Venable LLP, in Baltimore, Maryland, is tapped as counsel. Orrick, Herrington & Sutcliffe LLP is employed as special counsel. Jim Murray, and David Hilty, at Houlihan Lokey Howard & Zukin Capital, Inc., are tapped as investment banker and financial advisor. Protiviti Inc. is also engaged for financial advisory services. KPMG LLP is the tax consultant. Epiq Systems, Inc., is claims and noticing agent. Thornburg disclosed total assets of $24.4 billion and total debts of $24.7 billion, as of Jan. 31, 2009. On Oct. 28, 2009, the Court approved the appointment of Joel I. Sher as the Chapter 11 Trustee for the Company, TMST Acquisition Subsidiary, Inc., TMST Home Loans, Inc., and TMST Hedging Strategies, Inc. TOUSA INC: LSTA Urges Appeals Court to Preserve $500MM Loan ----------------------------------------------------------- American Bankruptcy Institute reports that the Loan Syndications and Trading Association has urged a federal appeals court to uphold a ruling that rescued a $500 million loan from a fraud finding in the bankruptcy of Florida home builder Tousa Inc. About Tousa Inc. Headquartered in Hollywood, Florida, TOUSA, Inc. (Pink Sheets: TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A. Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark Homes L.P., TOUSA Homes Inc. and Newmark Homes Corp. is a leading homebuilder in the United States, operating in various metropolitan markets in 10 states located in four major geographic regions: Florida, the Mid-Atlantic, Texas, and the West. The Debtor and its debtor-affiliates filed for separate Chapter 11 protection on Jan. 29, 2008 (Bankr. S.D. Fla. Case No. 08-10928). The Debtors have selected M. Natasha Labovitz, Esq., Brian S. Lennon, Esq., Richard M. Cieri, Esq., and Paul M. Basta, Esq., at Kirkland & Ellis LLP; and Paul Steven Singerman, Esq., at Berger Singerman, to represent them in their restructuring efforts. Lazard Freres & Co. LLC is the Debtors' investment banker. Ernst & Young LLP is the Debtors' independent auditor and tax services provider. Kurtzman Cars LLC acts as the Debtors' Notice, Claims & Balloting Agent. TOUSA's direct subsidiary, Beacon Hill at Mountain's Edge LLC dba Eagle Homes, filed for Chapter 11 Protection on July 30, 2008 (Bankr. S.D. Fla. Case No. 08-20746). It estimated assets and debts of $1 million to $10 million in its Chapter 11 petition. The official committee of unsecured creditors has filed a proposed chapter 11 liquidating plan for Tousa. However, the committee said that it no longer intends to pursue approval of its liquidation plan because of the pending appeal of its fraudulent transfer case in the U.S. Court of Appeals for the Eleventh Circuit. A district court in February 2011 held that the bankruptcy judge was wrong in ruling that lenders who were paid off received fraudulent transfers when Tousa gave liens on subsidiaries' properties to bail out and refinance a joint venture. Daniel H. Golden, Esq., and Philip C. Dublin, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, represent the creditors committee. TRADE UNION: Wants Until Oct. 1 to Solicit Plan Acceptances ----------------------------------------------------------- Trade Union International, Inc., and Duck House, Inc., ask the U.S. Bankruptcy Court for the Central District of California to extend their exclusive period to solicit acceptances for the proposed chapter 11 plan until Oct. 1, 2011. The Debtors filed their request for an extension before the exclusive period was set to expire on Aug. 1. The Debtors related that they are working towards negotiations with creditors, maintaining business operations, and identifying assets for sale. Plan Terms As reported in the Troubled Company Reporter on June 9, 2011, pursuant to the Plan terms, Allowed Administrative Claims will be paid in full on the Effective Date unless the holder of an Allowed Administrative Claim agrees to a different treatment. Allowed Priority Tax Claims will be paid in full within five years of the Petition Date. Allowed General Unsecured Claims are impaired under the Plan. Depending on the Creditor's election for treatment, Allowed General Unsecured Claims will be paid either (i) 20% of their Allowed Claim within thirty days of the Effective Date, or (ii) 50% of their Allowed Claim payable in annual installments of 10% each over a five year period from the Effective Date, with the first 10% installment payment to be made within thirty days of the Effective Date. With respect to Debtors' obligations to the Bank Group, $2.0 million will be paid on the Effective Date to reduce the principal balance to $9.5 million. Contingent on the sale of non- Estate assets by the Changs or third party financing, a second payment of $2.0 million will be paid at the end of the 2nd year after the Effective Date. If the sale of non-Estate assets or separate financing by the Changs is not obtained, this payment will not be made. 5.25% interest only payments will be made during years 1-2, payable monthly, commencing on the first day of the first full month following the Effective Date. Thereafter, payments of principal and interest will be made quarterly, based a 25 year amortization schedule, with payments commencing at the end of first quarter in year 3. The Claim of the Bank Group will be paid in full five years from the Effective Date. The rights of Wei Pen Chang and Mei Lien Chang are not modified by the Plan. The Existing Stock will remain in effect. The Debtors will make payments under the Plan primarily from continued business operations. Payments to the Bank Group and other creditors may also be funded from the China Plant sale transaction, the net benefit of which is expected to be approximately 11.5 million RMB, and from sale of assets that are not property of the Estates, some of which such property currently serves as collateral under the Bank Group's Secured Claim. The Cash in the Estate as of the Confirmation Date and the Cash which will be obtained by the Estate after the Confirmation Date will be distributed to Allowed Administrative Claims, Allowed Priority Tax Claims, Allowed Secured Claims, and Allowed General Unsecured Claims on account of their Allowed Claims amounts pursuant to the provisions of the Plan. A copy of the disclosure statement describing the Debtors' Chapter 11 Reorganization Plan is available at: http://bankrupt.com/misc/tradeunion.DS.pdf About Trade Union Montclair, California-based Trade Union International Inc. supplies aftermarket aluminum alloy wheels and wheel and truck accessories. It filed for Chapter 11 bankruptcy protection on January 31, 2011 (Bankr. C.D. Calif. Case No. 11-13071). James C. Bastian, Jr., Esq., at Shulman Hodges & Bastian LLP, in Irvine, Calif., serves as the Debtor's bankruptcy counsel. In its schedules, the Debtor disclosed $11,350,971 in assets and $19,826,869 in liabilities. Affiliate Duck House, Inc., a California corporation, filed a separate Chapter 11 petition on January 27, 2011 (Bankr. C.D. Calif. Case No. 11-13072). Duck House, Inc., specializes is designing products for sports enthusiasts. Trade Union and Duck House are each owned one-half by Wen Pin Chang and one-half by Mei Lien Chang. TRICO MARINE: Exits Bankruptcy, Assets to Be Liquidated ------------------------------------------------------- Trico Marine Services Inc. exited bankruptcy Aug. 11. Carla Main at Bloomberg News reports the confirmed plan provides, among other things, for the liquidation of the remaining assets of certain Debtors by a plan administrator and for the satisfaction of all allowed claims. Bill Murphy at citybizlist.com reports that Trico Marine plans to shortly begin its liquidation after a bankruptcy court approved its plan under Chapter 11. The Bloomberg report relates that the Plan stems from a settlement with non-bankrupt units approved in February. The Plan distributes its portion of the former units' stock to the parent's creditors. General unsecured creditors with claims of about $3.1 million are being paid 11% to 16% in cash. Holders of the 8.125% secured notes take $6.5 million in cash. For the noteholders' $209 million in deficiency claims, they receive 70.5% of the stock and warrants from the settlement. The class representing $163 million in qualified investor claims voted against the plan. By using cramdown, the judge is forcing them to receive 29.5% of the stock and warrants. In May, Trico Marine Services said it successfully completed an out-of-court restructuring of its Trico Supply Group, which includes Trico Supply AS, Trico Shipping AS, DeepOcean AS, CTC Marine Projects Ltd. and other subsidiaries. Under that deal, $399.5 million, or 99.88 percent, of Trico Shipping's 11 7/8 percent senior secured Notes due 2014, Trico Supply Group's working capital facility debt and intercompany claims and interests held by Trico Marine entities, were to be converted into equity with the holders proportionately sharing the common stock of DeepOcean Group Holding AS, a new Norwegian private limited company. A complete text of the Aug. 2 order confirming the Plan is available at http://is.gd/xMCVhs A complete text of the Confirmed Plan is available at http://is.gd/RgIiR2 About Trico Marine Headquartered in Texas, Trico Marine Services, Inc. -- http://www.tricomarine.com/-- provided subsea services, subsea trenching and protection services, and towing and supply vessels. Trico filed for Chapter 11 protection (Bankr. D. Del. Case No. 10-12653) on Aug. 25, 2010. John E. Mitchell, Esq., Angela B. Degeyter, Esq., and Harry A. Perrin, Esq., at Vinson & Elkins LLP, serve as the Debtor's bankruptcy counsel. The Debtor disclosed US$30,562,681 in assets and US$353,606,467 in liabilities as of the Petition Date. Affiliates Trico Marine Assets, Inc. (Bankr. D. Del. Case No. 10-12648), Trico Marine Operators, Inc. (Case No. 10-12649), Trico Marine International, Inc. (Case No. 10-12650), Trico Marine Cayman, L.P. (Case No. 10-12651), and Trico Holdco, LLC (Case No. 10-12652) filed separate Chapter 11 petitions. Cahill Gordon & Reindell LLP is the Debtors' special counsel. Alix Partners Services, LLC, is the Debtors' chief restructuring officer. The financial advisors are Evercore Partners and AP Services LLC. Epiq Bankruptcy Solutions is the Debtors' claims and notice agent. Postlethwaite & Netterville serves as the Debtors' accountant and Ernst & Young LLP serves as tax advisors. PricewaterhouseCoopers LLC provides the independent accountants and tax advisors for the Debtors. Aside from the Cayman Islands holding company, Trico's foreign subsidiaries were not included in the filing and were not subject to the requirements of the U.S. Bankruptcy Code. The Official Committee of Unsecured Creditors tapped Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski, Stang, Ziehl & Jones LLP, in Wilmington, Delaware, and Andrew K. Glenn, Esq., David J. Mark, Esq., and Daniel A. Fliman, Esq., at Kasowitz, Benson, Torres & Friedman LLP, in New York, as counsel. The Trico Supply Group -- which includes Trico Supply AS, Trico Shipping AS, DeepOcean AS, CTC Marine Projects Ltd. and other subsidiaries -- completed an out-of-court restructuring in May 2011. Pursuant to the out-of-court restructuring, $399,500,000 or 99.88%, of Trico Shipping's 11-7/8% Senior Secured Notes due 2014, the Trico Supply Group's working capital facility debt and intercompany claims and interests held by Trico Marine entities, were equitized and the holders received common stock of DeepOcean Group Holding AS, a new Norwegian private limited company. DeepOcean Holding and its subsidiaries, including Trico Supply, Trico Shipping, DeepOcean, CTC and other subsidiaries, were spun off Trico Marine. TRIUS THERAPEUTICS: Incurs $10-Mil. Net Loss in 2nd Quarter ----------------------------------------------------------- Trius Therapeutics, Inc., reported a net loss of $9.98 million on $2.86 million of total revenues for the three months ended June 30, 2011, compared with a net loss of $2.34 million on $2.08 million of total revenues for the same period during the prior year. The Company also reported a net loss of $20.05 million on $5.57 million of total revenues for the six months ended June 30, 2011, compared with a net loss of $6.61 million on $3.57 million of total revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $61.15 million in total assets, $14.85 million in total liabilities, and $46.29 million in total stockholders' equity. "We have made significant advances on multiple fronts that have collectively added considerable value to Trius. We are also very encouraged that enrollment completion of our 112 trial and the start of our 113 trial are both on target for this year," said Jeffrey Stein, Ph.D., president and chief executive officer of Trius. A full-text copy of the press release announcing the financial results is available for free at http://is.gd/pCSX19 About Trius Therapeutics San Diego, Calif.-based Trius Therapeutics, Inc. (Nasdaq: TSRX) -- http://www.triusrx.com/-- is a biopharmaceutical company focused on the discovery, development and commercialization of innovative antibiotics for serious, life-threatening infections. The Company's first product candidate, torezolid phosphate, is an IV and orally administered second generation oxazolidinone being developed for the treatment of serious gram-positive infections, including those caused by MRSA. In addition to the company's torezolid phosphate clinical program, it is currently conducting two preclinical programs using its proprietary discovery platform to develop antibiotics to treat infections caused by gram-negative bacteria. The Company has incurred losses since its inception and it anticipates that it will continue to incur losses for at least the next several years. The Company does not anticipate that its existing working capital, including the funds received on Aug. 6, 2010, from its IPO, alone will be sufficient to fund its operations through the successful development and commercialization of torezolid phosphate or any other products it develops. As a result, the Company says it will need to raise additional capital to fund its operations and continue to conduct clinical trials to support potential regulatory approval of torezolid phosphate and any other product candidates. The Company reported a net loss of $23.86 million on $8.03 million of total revenues for the year ended Dec. 31, 2010, compared with a net loss of $22.68 million on $5.01 million of total revenues during the prior year. UNI-PIXEL INC: Incurs $1.7 Million Net Loss in Second Quarter ------------------------------------------------------------- Uni-Pixel, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $1.72 million on $137,978 of revenue for the three months ended June 30, 2011, compared with net income of $676,300 on $39,228 of revenue for the same period a year ago. The Company also reported a net loss of $4.82 million on $189,566 of revenue for the six months ended June 30, 2011, compared with a net loss of $1.47 million on $102,764 of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $10.93 million in total assets, $64,742 in total liabilities and $10.86 million total shareholders' equity. "The advancement and commercialization of our UniBoss Performance Engineered Film technology has been our number one priority and focus over the last two quarters," said Reed Killion, UniPixel's President and CEO. "We raised our last round of funding in December 2010 specifically to bring mastering and manufacturing capabilities for our UniBoss Performance Engineered Film technology in-house and commercialize the flexible printed circuit products that are enabled by the UniBoss manufacturing process." A full-text copy of the Form 10-Q is available for free at: http://is.gd/cLPzh2 About Uni-Pixel Inc. The Woodlands, Tex.-based Uni-Pixel, Inc. (OTC BB: UNXL) -- http://www.unipixel.com/-- is a production stage company delivering its Clearly Superior(TM) Performance Engineered Films to the Lighting & Display, Solar and Flexible Electronics market segments. The Company reported a net loss of $3.81 million on $243,519 of thin film revenue for the year ended Dec. 31, 2010, compared with a net loss of $5.37 million on $0 of thin film revenue during the prior year. PMB Helin Donovan, 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 the Company has sustained losses and negative cash flows from operations since inception. UNIGENE LABORATORIES: Incurs $8.4-Mil. Net Loss in Second Quarter ----------------------------------------------------------------- Unigene Laboratories, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $8.43 million on $2.47 million of revenue for the three months ended June 30, 2011, compared with a net loss of $3.64 million on $3.02 million of revenue for the same period a year ago. The Company also reported a net loss of $15.08 million on $4.59 million of revenue for the six months ended June 30, 2011, compared with a net loss of $19.59 million on $5.56 million of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $21.79 million in total assets, $76.33 million in total liabilities and a $54.53 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/DtU2LG About Unigene Unigene Laboratories, Inc. OTCBB: UGNE) -- http://www.unigene.com/ -- is a biopharmaceutical company focusing on the oral and nasal delivery of large-market peptide drugs. Grant Thornton LLP, in New York, expressed substantial doubt about Unigene Laboratories' ability to continue as a going concern following the Company's 2009 results. The firm noted that the Company has incurred a net loss of $13,400,000 during the year ended Dec. 31, 2009 and has an accumulated deficit of approximately $143,000,000 as of Dec. 31, 2009. As of that date, the Company's current liabilities exceeded its current assets by $1,251,000 and its total liabilities exceeded total assets by $30,442,000. The Company reported a net loss of $27.86 million on $11.34 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $13.37 million on $12.79 million of revenue during the prior year. UNIVERSAL SOLAR: Incurs $993,000 Net Loss in Second Quarter ----------------------------------------------------------- Universal Solar Technology, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $993,197 on $768,035 of sales for the three months ended June 30, 2011, compared with a net loss of $207,614 on $0 of sales for the same period during the prior year. The Company also reported a net loss of $1.25 million on $1.72 million of sales for the six months ended June 30, 2011, compared with a net loss of $456,256 on $0 of revenue for the same period a year ago. The Company reported a net loss of $593,808 on $2.4 million of sales for 2010, compared with a net loss of $389,435 on $691,713 of sales for 2009. The Company's balance sheet at June 30, 2011, showed $10.55 million in total assets, $12.61 million in total liabilities and a $2.06 million total stockholders' deficiency. As reported by the TCR on April 5, 2011, Paritz & Company, P.A., in Hackensack, New Jersey, expressed substantial doubt about Universal Solar Technology's ability to continue as a going concern, after auditing the Company's 2010 results. The independent auditors noted that the Company's current liabilities exceeded its current assets by $1,484,406 and the Company has incurred net loss of $1,519,274 since inception. A full-text copy of the Form 10-Q is available for free at: http://is.gd/ET3olV About Universal Solar Headquartered in Zhuhai City, Guangdong Province, in the People's Republic of China, Universal Solar Technology, Inc., was incorporated in the State of Nevada on July 24, 2007. It operates through its wholly owned subsidiary, Kuong U Science & Technology (Group) Ltd., a company incorporated in Macau, the People's Republic of China on May 10, 2007, and its subsidiary, Nanyang Universal Solar Technology Co., Ltd., a wholly foreign owned enterprise registered on Sept. 8, 2008 under the wholly foreign- owned enterprises laws of the PRC. The Company primarily manufactures, markets and sells silicon wafers to manufacturers of solar cells. In addition, the Company manufactures photovoltaic modules with solar cells purchased from third parties. UPD GLOBAL RESOURCES: Owes $4.3-Mil. to PBC on Judgement -------------------------------------------------------- UPD Global Resources Inc., a manufacturer of adhesives and sealants, filed for Chapter 11 protection (Bankr. S.D. Tex. Case No. 11-br-36970) on Aug. 15 in Houston. The bankruptcy files show that P.B.C. Services Inc., a bulk pneumatic conveyor company based in Houma, Louisiana, holds an unsecured lien based on a judgment in the amount of $4.3 million, and the Port of Houston has a "landlord's lien" against the debtor for $80,700, according to Bloomberg News. William P. Haddock, Esq., at Pendergraft & Simon, in Houston, serves as counsel to the Debtor. The Debtor, based in Houston, estimated it has more than $10 million and less than $50 million of both assets and liabilities. URBAN WEST: Plans to Seek Dismissal, Asks for Exclusivity --------------------------------------------------------- Urban West Rincon Developers II, LLC, asks the U.S. Bankruptcy Court for the Northern District of California for an order extending the exclusive period for Debtors to file a plan and obtain acceptances, through and including Oct. 7, 2011, and Dec. 6, 2011, respectively. The Debtor states that failure to extend these periods would cause the Debtor to unnecessarily expend fees to file a plan and disclosure statement when their intention is to fulfill its compromise obligations and dismiss its Chapter 11 cases. The Debtor's case is not large in terms of numbers of creditors, involving fewer than 50 creditors each who are owed some $1 million. However, a large amount of money is at stake in terms of the secured debt ($38 million) and the cases' legal issues are extremely complicated. The Debtor says its case has proven to be complex in that there are various partnership interests involved. About Urban West Rincon Developers San Francisco, California-based Urban West Rincon Developers II, LLC, filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 11-30924) on March 9, 2011. Heinz Binder, Esq., and Roya Shakoori, Esq., at the Law Offices of Binder and Malter, serves as the Debtor's bankruptcy counsel. US FIDELIS: Robert E. Eggmann Authorized to Withdraw as Counsel --------------------------------------------------------------- The Hon. Charles E. Rendlen, III, of the U.S. Bankruptcy Court for the Eastern District of Missouri authorized Robert E. Eggmann to withdraw as counsel for US Fidelis, Inc. According to Mr. Eggmann, as of Aug. 1, 2011, he will no longer be affiliated with the law firm of Lathrop & Gage, LLP. Judge Renden also ordered that Brian Fenimore, Laura Toledo, at Lathrop & Gage LLP will remain as lead counsel of record for Debtor and therefore will continue to represent Debtor in the instant proceeding and all other associated cases. Wentzville, Missouri-based US Fidelis, Inc., was a marketer of vehicle service contracts developed by independent and unrelated companies. It stopped writing new business in December 2009. The Company filed for Chapter 11 bankruptcy protection (Bankr. E.D. Mo. Case No. 10-41902) on March 1, 2010. Brian Fenimore, Laura Toledo, at Lathrop & Gage LLP, assists the Company in its restructuring effort. In its schedules, the Company had assets of $74,386,836, and total debts of $25,770,655 as of the petition date. UTSTARCOM INC: Posts $11.3 Million Net Income in Second Quarter --------------------------------------------------------------- UTStarcom Holdings Corp. reported net income of $11.27 million on $81.36 million net sales for the three months ended June 30, 2011, compared with a net loss of $8.97 million on $62.61 million of net sales for the same period during the prior year. The Company also reported net income of $758,000 on $134.17 million of net sales for the six months ended June 30, 2011, compared with a net loss of $24.93 million on $131.79 million of net sales for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $707.53 million in total assets, $456.97 million in total liabilities, and $250.55 million in total equity. "With a significant boost from the equipment business, UTStarcom obtained our first profitable quarter after 24 consecutive quarters of losses. It is a very important milestone for the new management team to achieve after a long process of restructuring and reorganization. I am happy that our efforts have started to gain some traction," said Jack Lu, President and CEO of UTStarcom. "However, there were significant items which had positive impact on our results this quarter. We understand that it will require more discipline and more meaningful progress on the top line to achieve sustainable profitability." A full-text copy of the press release announcing the financial results is available for free at http://is.gd/QEa3gR About UTStarcom, Inc. UTStarcom, Inc. (Nasdaq: UTSI) -- http://www.utstar.com/-- is a global leader in IP-based, end-to-end networking solutions and international service and support. The Company sells its solutions to operators in both emerging and established telecommunications markets around the world. UTStarcom enables its customers to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to cost-efficient, end-to-end IP networks. The Company's headquarters are currently in Alameda, California, with its research and design operations primarily in China. The Company reported a net loss of $65.29 million on $291.53 million of net sales for the year ended Dec. 31, 2010, compared with a net loss of $225.70 million on $386.34 million of net sales during the prior year. VERENIUM CORP: Incurs $1.4 Million Net Loss in Second Quarter ------------------------------------------------------------- Verenium Corporation reported a net loss attributed to Verenium of $1.46 million on $15.13 million of total revenue for the three months ended June 30, 2011, compared with a net loss attributed to Verenium of $4.48 million on $13.68 million of total revenue for the same period during the prior year. The Company also reported net income attributed to Verenium $2.34 million on $28.53 million of total revenue for the six months ended June 30, 2011, compared with a net loss attributed to Verenium of $16.48 million on $25.90 million of total revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $71.47 million in total assets, $65.12 million in total liabilities and $6.35 million in stockholders' equity. "I am very pleased with the progress we've made in terms of product revenues and partnership negotiations in the first half of the year," said James E. Levine, president and chief executive officer at Verenium. "In the second quarter we saw significant growth and diversification of product revenues through our Grain and Oilseed Processing products. In addition, we entered into an important collaboration with Novus International Inc. to develop multiple products for the animal health and nutrition market, demonstrating the value of Verenium's product development capabilities in the large and growing global industrial enzymes market." A full-text copy of the press release announcing the financial results is available for free at http://is.gd/A6FGey About Verenium Corporation Cambridge, Mass.-based Verenium Corporation (NASDAQ: VRNM) -- http://www.verenium.com/-- is a pioneer in the development and commercialization of high-performance enzymes for use in industrial processes. Verenium currently sells enzymes developed using its R&D capabilities to industrial customers globally for use in markets including biofuels, animal health and oil seed processing. The Company reported a net loss of $5.35 million on $52.07 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $56.24 million on $48.82 million of total revenue during the prior year. As reported in the Troubled Company Reporter on March 19, 2010, Ernst & Young LLP, in San Diego, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that of the Company's recurring operating losses and accumulated deficit of $630.0 million at Dec. 31, 2009. VIEW SYSTEMS: Incurs $245,000 Net Loss in Second Quarter -------------------------------------------------------- View Systems, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $245,317 on $74,272 of net revenues for the three months ended June 30, 2011, compared with net income of $199,703 on $214,956 of net revenues for the same period during the prior year. The Company also reported a net loss of $351,364 on $191,296 of net revenues for the six months ended June 30, 2011, compared with a net loss of $258,602 on $478,947 of net revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $1.09 million in total assets, $1.43 million in total liabilities and a $345,694 total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/ICCZ9Z About View Systems Baltimore, Md.-based View Systems, Inc., develops, produces and markets computer software and hardware systems for security and surveillance applications. As reported in the TCR on March 15, 2011, Robert L. White & Associates, Inc., in Cincinnati, Ohio, expressed substantial doubt about View Systems' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company had a net loss of $513,353 for the year ended Dec. 31, 2010, and has an accumulated deficit of $22,837,787 at Dec. 31, 2010. VITESSE SEMICONDUCTOR: Posts $6.5-Mil. Net Income in June 30 Qtr. ----------------------------------------------------------------- Vitesse Semiconductor Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income of $6.55 million on $35.98 million of net revenues for the three months ended June 30, 2011, compared with net income of $33.03 million on $37.53 million of net revenues for the same period during the prior year. The Company also reported a net loss of $10.22 million on $110.62 million of of net revenues for the nine months ended June 30, 2011, compared with a net loss of $34.89 million on $123.09 million of net revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $72.02 million in total assets, $96.49 million in total liabilities and a $24.47 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/ewdZlV About Vitesse Based in Camarillo, California, Vitesse Semiconductor Corporation (Pink Sheets: VTSS.PK) -- http://www.vitesse.com/-- designs, develops and markets a diverse portfolio of semiconductor solutions for Carrier and Enterprise networks worldwide. In October 2009, Vitesse completed a debt restructuring transaction that resulted in the conversion of 96.7% of the Company's 2024 Debentures into a combination of cash, common stock, Series B Preferred Stock and 2014 Debentures. With respect to the remaining 3.3% of the 2024 Debentures, Vitesse settled its obligations in cash. Additionally, Vitesse repaid $5.0 million of its $30.0 million Senior Term Loan, the terms of which were amended as part of the debt restructuring transactions. The Company reported a net loss of $7.73 million on $37.45 million of net revenue for the three months ended Dec. 31, 2010, compared with a net loss of $33.86 million on $41.65 million of net revenue for the same period a year ago. WAGSTAFF PROPERTIES: Hires Terra Properties as Real Estate Broker ----------------------------------------------------------------- Wagstaff Properties LLC seeks permission from the U.S. Bankruptcy Court District of Minnesota to employ Terra Properties as its real estate broker with respect to the sale of certain unimproved commercial real property (a vacant lot) consisting of 0.62 acres located in Anderson, California (California Assessor's Parcel Number: 201-620-084). The Debtor has employed Terra since 2003 to manage the disposition of the Property. The Debtor has neither incurred nor paid any fees or expenses to Terra in connection with the sale of the Property to date. Under the Sale Agreement, Terra will serve as the Debtor's real estate broker in connection with the sale of the Property to the Buyer for $250,000, and Terra will receive commission equal to 4 percent on the Purchase Price, in the amount of $10,000, due upon closing. The Debtor proposes that Terra's final fees be authorized in conjunction with the approval of the Application, and that upon the close of the sale of the Property, the Debtor shall be authorized to immediately pay in full Terra's four percent commission, and no further application for fees will be made by Terra. To the best of the Debtor's knowledge, information and belief, and based entirely and in reliance upon the Declaration of Ronald R. Munk: (i) Terra is a "disinterested person" within the meaning of Sec 101(14) of the Bankruptcy Code and as required by Sec 327(a) of the Bankruptcy Code and referenced by Sec 328(c) of the Bankruptcy Code, (ii) Terra neither holds nor represents an interest adverse to the Debtors' estates; and (iii) Terra has no connection to the Debtors, their creditors, their shareholders, or related parties herein except as disclosed in the Munk Declaration. About Wagstaff Properties Hanford, California-based Wagstaff Properties LLC and its debtor- affiliates filed for Chapter 11 protection (Bankr. D. Minn. Case No. 11-43074) on April 30, 2011. The cases are jointly administered with Wagstaff Minnesota Inc. (Case No. 11-43073). Bankruptcy Judge Nancy C. Dreher presides over the cases. Fredrikson & Byron, PA, and Peitzman Weg & Kempinsky LLP represent the Debtors in their restructuring efforts. Wagstaff Properties estimated assets and liabilities at $10 million to $50 million. In May, Judge Robert J. Kressel granted the motion of Wagstaff Properties and its debtor affiliates to pay the prepetition claims of certain critical vendors. WARNER MUSIC: Terminates Offerings of Securities Under Plan ----------------------------------------------------------- Warner Music Group Corp. filed with the U.S. Securities and Exchange Commission a Post-Effective Amendment No.1 relating to Registration Statement on Form S-8, registering deferred compensation obligations of the Company that may be offered under the Warner Music Group Corp. Deferred Compensation Plan. On May 6, 2011, the Company entered into an Agreement and Plan of Merger with Airplanes Music LLC and Airplanes Merger Sub, Inc. Pursuant to the Merger Agreement, Merger Sub merged with and into the Company on July 20, 2011, with the Company surviving as a wholly owned subsidiary of Parent. As a result of the Merger, the Company has terminated all offerings of its securities pursuant to its existing registration statements. About Warner Music Group Based in New York, Warner Music Group Corp. (NYSE: WMG) -- http://www.wmg.com/-- was formed by a private equity consortium of investors on Nov. 21, 2003. The Company is the direct parent of WMG Holdings Corp., which is the direct parent of WMG Acquisition Corp. WMG Acquisition Corp. is one of the world's major music-based content companies and the successor to substantially all of the interests of the recorded music and music publishing businesses of Time Warner Inc. The Company classifies its business interests into two fundamental operations: Recorded Music and Music Publishing. The Company's Recorded Music business primarily consists of the discovery and development of artists and the related marketing, distribution and licensing of recorded music produced by such artists. The Company's Music Publishing operations include Warner/Chappell, its global Music Publishing company, headquartered in New York with operations in over 50 countries through various subsidiaries, affiliates and non-affiliated licensees. Warner Music reported a net loss of $39 million on $682 million of revenue for the three months ended March 31, 2011, compared with a net loss of $28 million on $666 million of revenue for the same period during the prior year. The Company also reported a net loss of $57 million on $1.47 billion of revenue for the six months ended March 31, 2011, compared with a net loss of $44 million on $1.58 billion of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $3.58 billion in total assets, $3.87 billion in total liabilities and a $289 million total deficit. * * * In May 2011, Warner Music Group Corp. and Access Industries, the U.S.-based industrial group, announced the execution of a definitive merger agreement under which Access Industries will acquire WMG in an all-cash transaction valued at $3.3 billion. The purchase includes WMG's entire recorded music and music publishing businesses. WESTSIDE MEDICAL: Can Use Cash Collateral to Pay Fees ----------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California has approved the first amendment to the stipulation to use cash collateral between Westside Medical Park, LLC, and Merlone Geier Partners, L.P., which holds a senior security interest in all of the Debtor's property, including cash collateral. A key purpose of the First Amendment is to facilitate the payment of a portion of professional fees, costs and expenses incurred by the Debtor in relation to creditor negotiations from MGP's cash collateral, while enabling MGP to receive an adequate protection payment and receive other forms of adequate protection. The principal terms of the First Amendment are: * The the Debtor will be authorized to pay up to $30,000 per month from the Cash Collateral Account for professional fees, costs and expenses incurred from and after May 15, 2011 through Aug. 15, 2011, totaling $90,000 in the aggregate, by professionals employed by the Debtor at the expense of the estate to the extent such fees, costs and expenses are payable. Any portion of the Monthly Cap not used in a given month may be carried forward to a future month. * The fees and expenses should have the written consent of MGP. * As adequate protection to MGP, the Debtor will not enter into any new leases, including renewals or modifications of Existing leases, of any of part of the Real Properties without MGP's prior written consent. * The Debtor will pay to its managing member, Stonebridge Holdings, Inc., a one-time supplemental management fee of $60,000 from the Cash Collateral Account. * The Debtor will pay to MGP a one-time adequate protection payment of $150,000 from the Cash Collateral Account. About Westside Medical Los Angeles, California-based Westside Medical Park, LLC, filed for Chapter 11 bankruptcy protection on November 3, 2010 (Bankr. C.D. Calif. Case No. 10-57457). The Debtor tapped Peregrine Realty Partners as appraiser. The Debtor estimated assets and debts at $50 million to $100 million as of the Chapter 11 filing. On Dec. 28, 2010, Peter C. Anderson, the U.S. Trustee, appointed these persons to serve in the Official Committee of Unsecured Creditors in the Debtor's case: 1. Dakota Communications 2. Burnside & Associates, Inc. 3. Argo Group US, Inc. 4. A.C. Martin Partners, Inc. WHITTON CORP: South Tech Wants To Use 1st Memphis Cash Collateral ----------------------------------------------------------------- South Tech Simmons 3040C, LLC, a debtor-affiliate of Whitton Corporation, asks the U.S. Bankruptcy Court for the District of Nevada for authority to use the cash collateral of its lender, First Memphis Company, LLC, as transferee of the Loan Documents of JPMCC 2006-CIBC14 SIMMONS STREET, LLC. Effective as of June 22, 2011, JPMCC sold, assigned and transferred to First Memphis all of its right, title and interest in and to a loan, all liens and collateral which secure the Loan including the lien on the Property and assignment of rents. First Memphis is now the lender whose cash collateral Debtor seeks to use. The Debtor has been unable to enter a stipulation for consensual continued use of Cash Collateral because no counsel has yet to appear on behalf of First Memphis in this Chapter 11 Case. The cash collateral will be used to fund ongoing expenses of operation and maintenance of the property and will not be used to fund the expenses and costs of administering Debtor's estate. Absent sufficient funds to support Debtor's operation and maintenance of the Property, the value of the property will deteriorate substantially and any chance for a meaningful recovery by Debtor's estate, creditors and equity interest holders would be imperiled. The Debtor will use all of its funds from the rent generated by the Property to satisfy expenses provided for in the budget. The Debtor is authorized to pay expenses without exceeding in any category 120% of the budgeted amounts for any item for the applicable period. The cash collateral will be used through November 30, 2011, or the occurrence of one of these termination events: 1. Entry of an order in this case granting relief from the automatic stay to allow a third party or third parties to proceed against any prepetition collateral or postpetition collateral; 2. Conversion of this case to Chapter 7 or dismissal of this case. As security for the payment of the Lender Adequate Protection Claims, the Lender is granted replacement lens on all proceeds of the Prepetition Collateral with the same validity as the liens held by Lender in the Prepetition Collateral subordinate only to all other valid liens of record, which are senior in priority to the liens held by Lender. The Lender claims will constitute allowed administrative expense claims under Bankruptcy Code Sections 503(b)(1), 507(a) and 507(b) and will be paid with priority over any administrative expenses and unsecured claims. Henderson, Nevada-based Whitton Corporation filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 10-32680) on Dec. 5, 2010. Hal L. Baume, Esq., Brett A. Axelrod, Esq., and Anne M. Loraditch, Esq., at Fox Rothschild LLP, in Las Vegas, Nev., serve as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. South Tech Simmons 3040C, LLC, filed a separate petition on Dec. 8, 2010 (Bank. D. Nev. Case No. 10-32857). WHITTON CORP: Can Use GSMS Cash Collateral Through Nov. 30 ---------------------------------------------------------- The U.S. Bankruptcy Court for the District of Nevada has approved a stipulation between Whitton Corporation and its prepetition lender GSMS 2004-GG2 Sparks Industrial, LLC, for the continued use of cash collateral through and including Nov. 30, 2011. The stipulation also includes a modified the budget for the period Sept. 1 to Nov. 30, 2011. A copy of the revised cash collateral budget is available at: http://bankrupt.com/misc/WHITTON_cashcollbudget.pdf Henderson, Nevada-based Whitton Corporation filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 10-32680) on Dec. 5, 2010. Hal L. Baume, Esq., Brett A. Axelrod, Esq., and Anne M. Loraditch, Esq., at Fox Rothschild LLP, in Las Vegas, Nev., serve as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. South Tech Simmons 3040C, LLC, filed a separate petition on Dec. 8, 2010 (Bank. D. Nev. Case No. 10-32857). YRC WORLDWIDE: S&P Reinstates CC Rating on Convertible PIK Notes ---------------------------------------------------------------- Standard & Poor's Ratings Services corrected and reinstated its 'CC' issue-level rating and '6' recovery rating on YRC Worldwide Inc.'s (YRC) convertible senior secured PIK notes due 2015. On Aug. 12, 2011, the rating on the notes was withdrawn due to a nonanalytical administrative error. "Our 'CCC' corporate credit rating and stable outlook on YRC remain unchanged," S&P said. ZURVITA HOLDINGS: Inks Oral Pact to Sell $1.5MM of Securities ------------------------------------------------------------- Zurvita Holdings, Inc., entered into an oral agreement with an accredited investor, subject to further negotiations, to sell to the Investor certain securities, including but not limited to convertible preferred stock and warrants to purchase common stock of the Company. The purchase price of the Private Placement Securities is expected to be $1.5 million, which funds were received from Investor on Aug. 8, 2011. However, a Preferred Stock purchase agreement and other related transaction documents are in the process of being negotiated with Investor and, accordingly, have not been executed at this time. The Private Placement Securities will be issued to Investor upon the execution of the Transaction Documents. About Zurvita Holdings Based in Houston, Tex., Zurvita Holdings, Inc., is a direct sales marketing company offering high-quality products and services targeting individuals, families and small businesses. The Company's balance sheet at April 30, 2011, showed $690,591 in total assets, $4.41 million in total liabilities, $4.55 million in redeemable preferred stock and a $8.27 million total stockholders' deficit. Liquidity Since the Company's inception, the Company has primarily met its operating cash requirements through equity contributions from The Amacore Group, Inc., who was the Company's sole shareholder prior to July 30, 2009. Subsequent to July 30, 2009, the Company has sold several series of preferred stock for gross proceeds of $6.8 million to another related party. The Company is using the proceeds from the sale of preferred stock to subsidize the Company's operations as the Company's revenues and operating cash flows are not currently sufficient to support the Company's current operations. At April 30, 2011, the Company had negative working capital of approximately $1.7 million, an accumulated deficit of approximately $18.3 million and negative cash flows from operating activities of approximately $2.9 million. Since the date of inception, the Company has used approximately $9.2 million in operations. The Company believes that without the support of its related party stockholders its cash resources would be insufficient to sustain current planned operations for the next 12 months. Additional cash resources may be required should the Company not meet its sales targets, exceed its projected operating costs, wish to accelerate sales or complete one or more acquisitions or if unanticipated expenses arise or are incurred. The Company does not currently maintain a line of credit or term loan with any commercial bank or other financial institution and has not made any other arrangements to obtain additional financing. The Company can provide no assurance that it will not require additional financing. Likewise, the Company can provide no assurance that if it needs additional financing that it will be available in an amount or on terms acceptable to it, if at all. If the Company is unable to obtain additional funds when they are needed or if such funds cannot be obtained on terms favorable to the Company, the Company may be unable to execute its business plan or pay its costs and expenses as they are incurred, which could have a material, adverse effect on the Company's business, financial condition and results of operations. These issues raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period. Meeks International, LLC, in Tampa, Fla., expressed substantial doubt about Zurvita Holdings' 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 suffered recurring losses from operations and has not generated sufficient cash flows from operations to meet its needs. * Fed Says Banks Eased Terms Amid More Lending Competition ---------------------------------------------------------- Bloomberg News reports that banks loosened credit standards on most types of loans in the second quarter, with commercial and industrial lenders citing "aggressive competition" as a reason for the easier terms, according to a Federal Reserve survey. "The July survey indicated that, on net, banks continued to ease lending standards and most terms on all major types of loans other than loans secured by real estate over the past three months," the central bank said Aug. 15 in its quarterly survey of senior loan officers. The Fed survey of loan officers at 55 domestic banks and 22 U.S. branches and agencies of foreign banks was conducted from July 12 through July 26, the Fed said. The report doesn't identify respondents. The report relates that, like the previous survey released in early May, the new survey found that banks continued to ease terms for business borrowers, including those seeking to take out commercial and industrial loans. More competition among lenders was the most commonly cited reason for the loosened standards, although "a more favorable or less uncertain economic outlook" also factored into the decisions, the Fed survey found. * LBO Loan Costs Soar to Highest in 2011 on Crisis, Bond Defaults ----------------------------------------------------------------- Bloomberg News reports that the cost to finance leveraged buyouts in the U.S. is the highest since December as Europe's debt crisis and a weakening economy damp demand for high-yield, high-risk loans. Average monthly interest rates on institutional leveraged loans, or the debt used to finance LBOs, rose to 491 basis points more than benchmarks in July, according to Standard & Poor's Leveraged Commentary & Data. Margins increased from a February low of 378 basis points. The difference equals an extra $11.3 million in annual interest for every $1 billion borrowed. Banks have committed almost $14 billion of financing, including $10.3 billion of loans for buyouts such as Apax Partners LLP's $6.3 billion LBO of Kinetic Concepts Inc., according to Barclays Capital. Investors pulled $1.36 billion from floating-rate funds that buy loans in the week ended Aug. 10, a day after the Federal Reserve pledged to keep its benchmark rate at a record lows until at least mid-2013 as the economic recovery falters. Elsewhere in credit markets, the cost of protecting company bonds from default in the U.S. declined for a second day and JPMorgan Chase & Co. lowered its forecast for returns on high yield debt. * Fitch Affirms Fannie and Freddie 'AAA' Ratings ------------------------------------------------ Fitch Ratings has affirmed the long-term Issuer Default Ratings (IDRs) of Fannie Mae and Freddie Mac at 'AAA'. The Rating Outlook remains Stable. This action follows Fitch's affirmation earlier today of the 'AAA' IDR and Stable Rating Outlook on the U.S. Government. The ratings of Fannie Mae and Freddie Mac are linked to the U.S. Sovereign rating, as articulated in Fitch's report 'Rating Linkages to the U.S. Sovereign Rating', dated July 18, 2011. The government sponsored entities (GSEs) remain regular issuers in the capital markets, benefiting from their implicit guarantee and ongoing explicit acts of meaningful financial support from the U.S. government. A key element of the explicit support is the guarantee by the U.S. Treasury to inject funds into Fannie Mae and Freddie Mac, so that each firm can avoid being considered technically insolvent by their regulator. Fitch believes continued material credit expenses from each firm's legacy books of business and their quarterly dividend obligation to the U.S. Treasury makes it highly likely that one or both firms will continue to rely on capital support from the U.S. Treasury for the foreseeable future. Back in February 2011, the Obama Administration issued a report to Congress titled 'Reforming America's Housing Finance Market.' In this report, when referring to Fannie Mae and Freddie Mac, the Administration stated: 'The government is committed to ensuring that Fannie Mae and Freddie Mac have sufficient capital to perform under any guarantees issued now or in the future and the ability to meet any of their debt obligations. The Administration will not pursue policies or reforms in a way that would impair the ability of Fannie Mae or Freddie Mac to honor their obligations.' Fitch believes such a definitive statement by the Administration confirms its on-going support to Fannie and Freddie, and as a result, Fitch anticipates maintaining the equalization of the long- and short-term IDRs and Rating Outlooks of these firms with that of the U.S. Sovereign. Fitch has also affirmed Fannie Mae and Freddie Mac's preferred stock ratings at 'C/RR6', reflecting the ongoing deferral of payments and very low prospects for recovery. The rating actions were driven by the specific event of the affirmation of the U.S. sovereign rating on Aug. 16, 2011. Fitch did not carry out a full review as described in its 'Global Financial Institutions Rating Criteria', but limited its review to an assessment of the impact of the event on the banks' ratings. The ratings of both Fannie Mae and Freddie Mac were last reviewed on Dec. 14, 2010; see the Fitch releases, 'Fitch Affirms Fannie Mae's Ratings; Outlook Stable' and 'Fitch Affirms Freddie Mac's Ratings; Outlook Stable', dated Dec. 14, 2010. Fitch has affirmed the following ratings with a Stable Outlook: Fannie Mae (Federal National Mortgage Association) -- Long-term IDR at 'AAA'; -- Senior unsecured at 'AAA'; -- Short-term IDR at 'F1+'; -- Short-term debt at 'F1+'; -- Subordinated debt at 'AA-'; -- Preferred stock at 'C/RR6'; -- Support rating at '1'; -- Support floor at 'AAA'. Freddie Mac (Federal Home Loan Mortgage Corporation) -- Long-term IDR at 'AAA'; -- Senior unsecured at 'AAA'; -- Short-term IDR at 'F1+'; -- Short-term debt at 'F1+'; -- Subordinated debt at 'AA-'; -- Preferred stock at 'C/RR6'; -- Support rating at '1'; -- Support floor at 'AAA'. * BOOK REVIEW: Leveraged Management Buyouts ------------------------------------------- Edited by Yakov Amihud Beard Books, Washington, D.C. 2002 (reprint of 1989 book published by Dow Jones-Irwin). 268+xiii pages. $34.95 trade paper, ISBN 1-58798-138-6. The twelve papers were first presented at a 1988 conference sponsored by the Salomon Brothers Center for the Study of Financial Institutions held at the New York University Leonard N. Stern School of Business. The papers by leading business figures were "intended to expand the understanding of the causes and consequences of leveraged management buyouts and to contribute to the debate on the appropriate public policy to be applied" [from the editor Amihud's Preface]. This aim involved the analyses of leveraged management buyouts [MBO] by businesspersons who had participated in such transactions, review of the latest academic research on the topic, and a critical look at the relevant regulatory proposals. The interest in policy--i. e., government policy--on MBO's is emphasized by the presence of the notable Edward J. Markey--at the time the chairman of the Telecommunications and Finance Subcommitte of the U. S. House of Representatives--to give a paper on "Legislative Views on Management Buyouts." The participaton of Joseph A. Grundfest of the Securities and Exchange Commission adds to this emphasis. Other participants are outstanding lawyers and professors in the fields of corporate finance and buyouts and one participant from Goldman, Sachs. When the conference was held and the book published shortly thereafter in the late 1980s, leveraged buyouts were occurring across the United States business landscape in "unprecedented levels, both in number and in size of transaction." One recalls that this was the latter years of the two Reagan presidential terms during which entrepreneurialism, deregulation, mergers and acquisitions, and other practices for new kinds of business growth were officially encouraged. The Reagan policies created a new business environment. MBOs were a part of this. Resembling for the most part the leveraged buyouts (LBOs) which were occurring widely at the time, MBOs were distinguished within this activity in that "the incumbent management [of the firm being bought out] acquires a substantially greater proportion of the firms' equity than it previously had and the public firm is merged into the privately owned firm that usually continues to operate the acquired firm as an independent company." Oftentimes particular assets and sometimes whole divisions of the acquired firm are sold off. The firm acquiring a company is "normally a group of investors [who formed] a shell holding corporation, whose equity is privately held." Such investors would have a great deal more latitude in making acquisitions and in selling off parts of an acquired company than in typical mergers-and-acquisitions between companies for the purposes of symbiosis or efficiencies in operations for example. The managers of a company more or less take this position toward their company in a leveraged management buyout. The concerns and questions raised especially by leveraged management buyouts in the late 1980s are the same ones as today. Then as now, MBOs "inspire the question of fairness and the question of whether this form of restructuring has real economic benefits." The papers try to answer these questions though no definitive answers can be given since questions of fairness and economic benefits raise further questions about fairness and benefits for whom; and also business conditions are continually changing leading to new perspectives and assessments of leveraged management buyouts. The severe United States' recession with global repercussions starting in 2008 once again raises such ethical and economic questions. The closing words of Roberta Romano of the Yale Law School in her paper "Management Buyout Puzzles" still apply: "Although we have learned a great deal about MBOs, in my estimation, we are still groping in the dark." As in many matters, there are no permanent answers or positions. Some MBOs are right and beneficial, while others are wrong and harmful. The learned papers of this collection help readers weigh which MBOs are which type. Yakov Amihud is the Ira Leon Rennett Professor of Entrepenurial Finance at the NYU Stern School of Business who has written on corporate finance, mergers and acquisitions, and securities' trading. ********* 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 ***