/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/110822.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, August 22, 2011, Vol. 15, No. 232 Headlines 155 EAST TROPICANA: Hooters Casino Seeks Capital or Sale 155 EAST TROPICANA: Meeting of Creditors Scheduled for Sept. 8 155 EAST TROPICANA: Files Schedules of Assets and Liabilities 785 PARTNERS: Wants Until Sept. 19 to File Schedules, Statement 9064 HIGHWAY: Voluntary Chapter 11 Case Summary ACCESS PHARMACEUTICALS: Incurs $1.2-Mil. Second Quarter Net Loss AEOLUS PHARMACEUTICALS: Posts $6.3-Mil. Income in June 30 Quarter AGY HOLDING: Files Form 10-Q, Incurs $6.2 Million Net Loss in Q2 AHF DEVELOPMENT: Substantive Consolidation Denied; Case Dismissed ALION SCIENCE: Incurs $11.5 Million Second Quarter Net Loss ALLEN FAMILY: Rejects H. S. Schwartz Employment Agreement ALROSE KING: Files Schedules of Assets & Liabilities AMERICAN NATURAL: Incurs $22,000 Net Loss in Second Quarter AMERICAN PATRIOT: Incurs $631,700 Second Quarter Net Loss AMERITOX LTD: S&P Withdraws Prelim. 'B' Corporate Credit Rating ARCADIA RESOURCES: Incurs $2.8-Mil. Net Loss in June 30 Quarter ASARCO LLC: Baker Botts Takes Home $128.5-Mil. in Fees ASARCO LLC: 5th Cir. Says Reimbursement to Bidders Was Proper AUTOPARTS HOLDINGS: S&P Assigns 'B+' Corporate Credit Rating AUTOS VEGA: Creditor Mulling Cash Use Objection AVIS BUDGET: DBRS Says 'B' Issue Rating Unaffected by Q2 Results BARBETTA LLC: Taps Mark O'Neal, Robin Boylan as Property Brokers BERNARD L. MADOFF: Feeder Files Adversary Suits to Recoup $18-Mil. BLACK RAVEN: Incurs $1 Million Net Loss in Second Quarter BONDS.COM GROUP: Expands Into Latin America Through Red Kite Pact BONITA BEACH: Case Summary & 16 Largest Unsecured Creditors BORDERS GROUP: Agree in Default on Six Mortgage Loans BRADLEY WARKENTIN: Court Allows Bank's Claim for Attorney's Fees BROOKLYN FEDERAL: Reports Net Income of $65,000 in June 30 Quarter BROOKLYN FEDERAL: Announces Merger With Investors Bancorp BUCKTOWN STATION: Court Gives Liquidation Plan a Chance BURT REYNOLDS: Faces Foreclosure on Florida Mansion CABIN HOLLOW: Voluntary Chapter 11 Case Summary CALPIAN INC: Posts $758,900 Net Loss in Q2 Ended June 30 CALPINE CORP: Releases Remaining Stock, Resolves All Claims CAPMARK FINANCIAL: Files Third Amended Joint Reorganization Plan CASCO HOTEL: Voluntary Chapter 11 Case Summary CHINA RUITAI: Reports $1.4 Million Second Quarter Net Income CICERO INC: Incurs $540,000 Net Loss in Second Quarter CIRTRAN CORP: Delays Filing of 2nd Quarter Form 10-Q CNS RESPONSE: Reports $873,000 Net Profit in June 30 Quarter COMMONWEALTH BANKSHARES: Incurs $26.2 Million Net Loss in Q2 COMMUNITY SHORES: Files Form 10-Q, Reports $522,000 Q2 Net Loss CONQUEST PETROLEUM: Incurs $1.7 Million Second Quarter Net Loss CONSOL ENERGY: Moody's Reviews 'Ba3' Corporate for Upgrade CONTESSA PREMIUM: Debtor Changes Name to Contessa Liquidating COVINA PALMS: Case Summary & 15 Largest Unsecured Creditors CREATIVE VISTAS: Incurs $76,000 Net Loss in Second Quarter CROSS BORDER: Incurs $66,600 Net Loss in Second Quarter CRYSTALLEX INT'L: Incurs $10.1 Million Second Quarter Net Loss CST INDUSTRIES: Moody's Downgrades CFR to 'B3'; Outlook Negative DED DEVELOPMENT: Case Summary & Largest Unsecured Creditor DELTATHREE INC: Files Form 10-Q, Incurs $1.6MM Net Loss in Q2 DENNIS BROWN: Case Summary & 17 Largest Unsecured Creditors DPAC TECHNOLOGIES: Incurs $34,600 Net Loss in Second Quarter DRAYTON VENTURES: Case Summary & 5 Largest Unsecured Creditors EARTH SEARCH: Delays Filing of Quarterly Report on Form 10-Q EAST COAST: Scott Morrison Okayed as Broker for N.C. Properties EAU TECHNOLOGIES: Incurs $1 Million Net Loss in Second Quarter EDINBURG INVESTMENTS: Case Summary & 9 Largest Unsecured Creditors EIGHT BULLS: Dist. Court Says Rooker-Feldman Doctrine Inapplicable ELEPHANT TALK: Incurs $6.7 Million Net Loss in Second Quarter ENERGY FUTURE: To Offer $115 Million 9.75% Senior Notes Due 2019 ENERJEX RESOURCES: Posts $921,600 Net Income in Second Quarter ENRON CORP: Creditors, Lay's Widow Fight Insurer Over Fees ENTERPRISE TECHNOLOGY: In Receivership; Owners Evaluate Property ERP-LINK CORP: Case Summary & 20 Largest Unsecured Creditors EVERGREEN SOLAR: Makes Public Information Sent to Noteholders EVERGREEN SOLAR: Wins OK to Cover Key Obligations in Chapter 11 EXTERRAN HOLDINGS: S&P Raises Rating on 4.25% Sr. Notes to 'BB' FENTURA FINANCIAL: Incurs $245,000 Net Loss in Second Quarter FIESTA RESTAURANT: S&P Assigns 'B' Corporate Credit Rating FIRST SECURITY: Incurs $5.4 Million Net Loss in Second Quarter FIRSTPLUS FIN'L: AMC Tapped as Appraiser for Aircraft GALP CNA: Court Confirms Plans of Reorganization GALP CYPRESS: Cypress Has Access to Keybank's Cash Until Aug. 31 GAMESTOP CORP: Q2 Profit Slumps 23% on Same-Store Sales Decline GARLOCK SEALING: Hires Rust Consulting as Claims Handling Agent GATEWAY HOTEL: Court to Tackle 'Market Testing' Plan on Wednesday GERDAU AMERISTEEL: Moody's Withdraws 'Ba1' Corp. Family Rating GOLD HILL: Seeks to Employ Hartsell & Williams as Special Counsel GREAT LAKES AVIATION: Reports $606,500 2nd Quarter Net Income GRUBB & ELLIS: Incurs $14.7 Million Second Quarter Net Loss HILLSIDE VALLEY: Withdraws Emergency Motion for $6.5-Mil Financing HOLLIFIELD RANCHES: Plan Outline Hearing Continued Until Aug. 31 HORIZON LINES: Subscription Deadline Expired Aug. 19 IMH FINANCIAL: Incurs $6.8 Million Net Loss in Second Quarter INDYMAC BANCORP: Insurers Fight Coverage for $355MM Theft J.B. POINDEXTER: Moody's Upgrades Corp. Family Rating to 'B2' JACKSON GREEN: Stipulates With Lender on Use of Cash Collateral JIM SLEMONS HAWAII: Court Declines to Review Disqualification Bid JOE ALEXANDER: Barred From Pursuing Legal Malpractice Claim KINETIC CONCEPTS: Moody's Assigns 'B2' Corporate Family Rating KNOWLEDGEFUNDING OHIO: Moody's Revises August 16 Release KZMSS AGAIN: Case Summary & 20 Largest Unsecured Creditors LA VILLITA: Can Access Cash Collateral of Trust Until Aug. 31 LAUGH OUT: Case Summary & 9 Largest Unsecured Creditors LAXMI REALTY: Case Summary & 19 Largest Unsecured Creditors LEED CORP: Taps Maynes Taggart PLLC as Bankruptcy Counsel LEED CORP: Committee Seeks to Retain C. Jorgensen as Attorney LEHMAN BROTHERS: Wins Approval of Claims Determination Process LEHMAN BROTHERS: Creditors back Private Sale of Rosslyn LEHMAN BROTHERS: Recovers $881-Mil. From ADR Process LEHMAN BROTHERS: Wins OK for Moulton for Foreclosure Litigation LEHMAN BROTHERS: Drops Plea to Hire Pachulski for 2 Civil Cases LEONID CHATKHAN: Bid for More Time to Challenge Discharge Denied LIONCREST TOWERS: Plan Disclosures Approval or Dismissal Tomorrow LODGER LLC: Case Summary & Largest Unsecured Creditor LOS ANGELES DODGERS: Bingham Lose Bid to Strike Malpractice Claims LUMEA STAFFING: Green Planet's Staffing Business in Chapter 11 MAJESTIC CAPITAL: Can Hire BDO USA as Tax Preparers MARCO POLO: A.P. Moller Wants Adequate Protection for Cash Use MARCO POLO: Propsoes $1-Mil. Loan from Credit AgriCole, RBS MARINA BIOTECH: Posts $3.6-Mil. 2nd Quarter Net Loss MECHANICAL TECHNOLOGY: Posts $395,000 Net Loss in 2nd Quarter MEDIMEDIA USA: Moody's Junks Corporate Family Rating From 'B3' MERCANTILE BANCORP: Incurs Roughly $2-Mil. 2nd Quarter Net Loss MERCED FALLS: Case Summary & 4 Largest Unsecured Creditors MOHEGAN TRIBAL: Reports $28.6-Mil. Net Income in June 30 Quarter MOORE SORRENTO: Voluntary Chapter 11 Case Summary MORGANS HOTEL: Units Ink $135MM Mortgage Loan with Deutsche Bank MRA PELICAN: Sec. 341 Creditors Meeting Set for Sept. 23 MRA PELICAN: Fannie Mae Challenges Bid to Repossess Apartment MRA PELICAN: Hiring Shraiberg Ferrara as Bankruptcy Counsel MUNICIPAL MORTGAGE: Incurs $12.6-Mil. Net Loss in Second Quarter NCO GROUP: Incurs $32.3 Million Net Loss in Second Quarter NEBRASKA BOOK: NBC Posts $23.7 Million Net Loss in June 30 Quarter NEDAK ETHANOL: Incurs $2.3 Million Net Loss in Second Quarter NEW JERSEY ECONOMIC: Moody's Maintains 'Ba2' Rating on Bonds NEWPAGE CORP: Incurs $132MM Q2 Net Loss, Warns of Bankruptcy NOMOTO INVESTMENTS: Case Summary & Largest Unsecured Creditor NPS PHARMACEUTICALS: Amends Amgen Pact, To Retire Series B Notes NUMOBILE INC: Incurs $434,000 Net Loss in Second Quarter NURSERYMEN'S EXCHANGE: Court OKs Epiq as Committee's Info Agent O&G LEASING: Court Approves Summit Group as Financial Advisor O'FALLON HOSPITALITY: Case Summary & 20 Largest Unsec Creditors OCEAN PLACE: Has Access to AFP's Cash Collateral Until Oct. 18 OPTIMUMBANK HOLDINGS: Incurs $1.9 Million Second Quarter Net Loss PMMB INVESTMENTS: Case Summary & 20 Largest Unsecured Creditors SALT POINT: Case Summary & 6 Largest Unsecured Creditors SCHOMAC GROUP: Files Schedules of Assets and Liabilities SCHOMAC GROUP: Sec. 341 Creditors Meeting Set for Sept. 8 SCHOMAC GROUP: Has Permission to Hire Mesch Clark as Counsel SCHOMAC GROUP: Hiring Dennis Winans CPA as Consultant SCHOMAC GROUP: Seeks to Use YSI Dividends & Rents STELLAR GT: Counsel Must Serve Papers to Chapter 7 Entity STONY POINT LAND: Dist. Ct. Affirms Ruling in Hubbard Suit STRANAHAN INDUSTRIES: Case Summary & 2 Largest Unsecured Creditors THOMAS GRABANSKI: Crop Production Services' Claim Is Dischargeable UHA CORPORATION: Files for Bankruptcy in Columbus, Ohio UHA CORPORATION: Case Summary & Largest Unsecured Creditor UPSTATE HEIGHTS: Case Summary & Largest Unsecured Creditor WASTE2ENERGY HOLDINGS: Aug. 26 Hearing on Bid for Ch. 11 Trustee * BOND PRICING -- For Week From Aug. 15 - 19, 2011 ********* 155 EAST TROPICANA: Hooters Casino Seeks Capital or Sale -------------------------------------------------------- Steve Green at Vegas Inc. reports that Hooters casino resort in Las Vegas wants to explore alternatives to a forced foreclosure including raising capital, a merger or a sale of the property. According to the report, Hooters casino's parent company, 155 East Tropicana LLC, filed for Chapter 11 bankruptcy reorganization to block a foreclosure planned by lender Canpartners Realty Holding Co. IV, an affiliate of investment company Canyon Capital Realty Advisors of Los Angeles. The report notes the 696-room property on Tropicana Avenue, just east of the Las Vegas Strip, is encumbered by debt and liabilities of $177.8 million, according to an updated filing Aug. 15. Because liens for $14.5 million in note debt are subordinate to liens in a credit facility, the property's effective amount of debt and liabilities is about $163.3 million. This includes Canpartners' secured claim of $162.2 million -- debt Hooters points out was bought at a deep discount. The amount of that discount hasn't been disclosed. The hotel-casino real estate was valued by the company at $46.7 million as of Aug. 15. Including the real estate and inventory, the company's assets total just $63.2 million, he adds. Bankruptcy Judge Bruce Markell in Las Vegas on Aug. 4 told Hooters casino attorneys this is a case in which Hooters needs to either turn the property over to Canpartners, quickly come up with some new capital or reach a consensual restructuring deal with Canpartners, according to the report. Vegas Inc., citing papers filed with the Court, says 155 East Tropicana signaled it's looking at various options as it asked Judge Markell for permission to hire financial advisers Innovation Capital LLC of El Segundo, Calif.; and Alvarez & Marsal North America LLC of New York. One filing said Innovation Capital would work on "raising senior debt and/or junior capital for the company, including refinancing or recapitalizations; or a sale, merger or acquisition of the company." The report relates that another Hooters filing said Alvarez & Marsal would provide financial and restructuring advisory services including reviewing Hooters' operations, liquidity situation, business plan, budgets and loan agreements; and would provide valuation analyses and assist in debt restructuring initiatives. 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. 155 EAST TROPICANA: Meeting of Creditors Scheduled for Sept. 8 -------------------------------------------------------------- The U.S. Trustee for Region 17 will convene a meeting of creditors in 155 East Tropicana, LLC and 155 East Tropicana Finance Corp.'s Chapter 11 case on Sept. 8, 2011, at 2:00 p.m. The meeting will be held at Foley Federal Building and U.S. Courthouse, 300 Las Vegas Blvd., South, Room 1500, Las Vegas, Nevada. 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. 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. The Debtors are being advised by Brigid M. Higgins, Esq., at Gordon & Silver, Ltd., in Las Vegas, Nevada, as counsel and Innovation Capital LLC of El Segundo, Calif. and Alvarez & Marsal North America LLC of New York as financial advisors. Garden City Group, Inc., is the claims agent. 155 East Tropicana scheduled $62,236,842 in assets and $177,806,045 in liabilities as of the Chapter 11 filing. 155 EAST TROPICANA: Files Schedules of Assets and Liabilities ------------------------------------------------------------- 155 East Tropicana, LLC, filed with the U.S. Bankruptcy Court for the District of Nevada its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $46,700,000 B. Personal Property $16,536,842 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $176,718,168 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $1,087,877 ----------- ----------- TOTAL $62,236,842 $177,806,045 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. The Debtors are being advised by Brigid M. Higgins, Esq., at Gordon & Silver, Ltd., in Las Vegas, Nevada, as counsel and Innovation Capital LLC of El Segundo, Calif. and Alvarez & Marsal North America LLC of New York as financial advisors. Garden City Group, Inc., is the claims agent. 785 PARTNERS: Wants Until Sept. 19 to File Schedules, Statement --------------------------------------------------------------- 785 Partners LLC, asks the U.S. Bankruptcy Court for the Southern District of New York to extend until Sept. 19, 2011, the time to file its schedules of assets and liabilities, statements of financial affairs and lists of executory contracts and unexpired leases. The Debtor requires additional time to prepare the schedules. The Debtor tells the Court that on Oct. 6, 2010, a receiver was appointed in the foreclosure action to take control of the its property -- a land and a 122 unit luxury residential building located at 785 Eighth Avenue, New York City. The Debtor's lenders PB Capital Corporation and TD Bank conveyed the loan documents to First Manhattan Developments REIT. First Manhattan requested to retain the receiver in control of the property. The hearing on the motion is set for Sept. 8, 2011. Under the Court's scheduling order, the receiver remains in possession of the property. On Aug. 12, 2011, First Manhattan provided the Debtor a schedule of expenses relative to the property from the receiver for the period Nov. 1, 2010, until Aug. 11, 2011. The Debtor notes that it was the first financial information the receiver has ever provided to the Debtor relative to the property. About 785 Partners LLC 785 Partners LLC filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 11-13702) on Aug. 3, 2011. Andrew K. Glenn, Esq., at Kasowitz, Benson, Torres & Friedman LLP, in New York, serves as counsel. The Debtor estimated assets and debts of $100 million to $500 million. The petition was signed by Kevin O'Sullivan, co- manager. 9064 HIGHWAY: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: 9064 Highway 285 LLC 4036 West 104th Place Westminster, CO 80031 Bankruptcy Case No.: 11-29539 Chapter 11 Petition Date: August 16, 2011 Court: United States Bankruptcy Court District of Colorado (Denver) Judge: Howard R. Tallman Debtor's Counsel: Stephen E. Berken, Esq. LAW OFFICES OF STEPHEN BERKEN 1159 Delaware St. Denver, CO 80204 Tel: (303) 623-4357 Fax: (720) 554-7853 E-mail: MidtowneFin@aol.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Spencer L. House, managing member. ACCESS PHARMACEUTICALS: Incurs $1.2-Mil. Second Quarter Net Loss ---------------------------------------------------------------- Access Pharmaceuticals, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $1.26 million on $151,000 of total revenues for the three months ended June 30, 2011, compared with net income of $1.79 million on $105,000 of total revenues for the same period a year ago. The Company also reported a net loss of $3.16 million on $301,000 of total revenues for the six months ended June 30, 2011, compared with net income of $2.88 million on $207,000 of total revenues for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $5.06 million in total assets, $29 million in total liabilities and a $23.94 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/saB35u About Access Pharmaceuticals Access Pharmaceuticals, Inc., is an emerging biopharmaceutical company focused on developing pharmaceutical products primarily based upon its nano-polymer chemistry technologies and other drug delivery technologies. The Company currently has one approved product, one product candidate at Phase 3 of clinical development, three product candidates in Phase 2 of clinical development and other product candidates in pre-clinical development. The Company reported a net loss of $7.54 million on $481,000 of revenue for the year ended Dec. 31, 2010, compared with a net loss of $17.34 million on $352,000 of revenue during the prior year. As reported by the TCR on April 5, 2011, Whitley Penn LLP, in Dallas, Texas, 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 had recurring losses from operations, negative cash flows from operating activities and has an accumulated deficit. AEOLUS PHARMACEUTICALS: Posts $6.3-Mil. Income in June 30 Quarter ----------------------------------------------------------------- Aeolus Pharmaceuticals, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income of $6.29 million on $1.91 million of contract revenue for the three months ended June 30, 2011, compared with a net loss of $4.62 million on $0 of contract revenue for the same period a year ago. The Company also reported net income of $2.45 million on $2.69 million of contract revenue for the nine months ended June 30, 2011, compared with a net loss of $12.98 million on $0 of contract revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $1.45 million in total assets, $22.82 million in total liabilities, and a $21.36 million total stockholders' deficit. Haskell & White LLP, in Irvine, California, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial statements for fiscal year ended Sept. 30, 2010. The independent auditors noted that the Company has suffered recurring losses, negative cash flows from operations and management believes the Company does not currently possess sufficient working capital to fund its operations past the second quarter of fiscal 2012. The Company reported a net loss of $25.9 million, which included a non-cash charge of $21.3 million related to increases in the fair value of warrants, for fiscal 2010, compared with a net loss of $2.3 million for fiscal 2009. The Company did not generate any revenue during fiscal 2010 or fiscal 2009. "Progress, under the $10.4 million base period of our development contract with BARDA, which could total up to $118.4 million, if all of the options are exercised, continued during the quarter with the accomplishment of several milestones and significant progress in the animal model development and validation and manufacturing areas," stated John L. McManus, president and chief executive officer, in a press release. "Studies are underway to confirm the animal models that will be used during the second half of this year and in future contract periods to select the dose, duration of treatment and design the pivotal efficacy studies." A full-text copy of the Form 10-Q is available for free at: http://is.gd/RBhFRl About Aeolus Pharmaceuticals Based in Mission Viejo, California, Aeolus Pharmaceuticals Inc. (OTC BB: AOLS) -- http://www.aeoluspharma.com/-- is developing a variety of therapeutic agents based on its proprietary small molecule catalytic antioxidants, with AEOL 10150 being the first to enter human clinical evaluation. AEOL 10150 is a patented, small molecule catalytic antioxidant that mimics and thereby amplifies the body's natural enzymatic systems for eliminating reactive oxygen species, or free radicals. Studies funded by the National Institutes for Health are currently underway evaluating AEOL 10150 as a treatment for exposure to radiation, sulfur mustard gas and chlorine gas. A second compound, AEOL 11207, has demonstrated efficacy in animal models of Parkinson's disease and is currently being evaluated as a potential treatment for epilepsy. AGY HOLDING: Files Form 10-Q, Incurs $6.2 Million Net Loss in Q2 ---------------------------------------------------------------- AGY Holding Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $6.16 million on $50 million of net sales for the three months ended June 30, 2011, compared with a net loss of $5.86 million on $49.30 million of net sales for the same period a year ago. The Company also reported a net loss of $13.23 million on $94.93 million of net sales for the six months ended June 30, 2011, compared with a net loss of $10.93 million $94.88 million of net sales for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $298.57 million in total assets, $285.16 million in total liabilities, $6.13 million in obligation under put/call for noncontrolling interest and $7.27 million total shareholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/EVEibT About AGY Holding AGY Holding Corp. -- http://www.agy.com/-- produces fiberglass yarns and high-strength fiberglass reinforcements used in composites applications. AGY serves a range of markets including aerospace, defense, electronics, construction and industrial. Headquartered in Aiken, South Carolina, AGY has a European office in Lyon, France and manufacturing facilities in the U.S. in Aiken, South Carolina and Huntingdon, Pennsylvania and a controlling interest in a manufacturing facility in Shanghai, China. The Company reported a net loss of $14.57 million on $183.67 million of net sales for the year ended Dec. 31, 2010, compared with a net loss of $93.51 million on $153.85 million of net sales during the prior year. * * * AGY Holding carries a 'CCC+' corporate credit rating from Standard & Poor's Ratings Services. In December 2009, S&P lowered the rating to 'CCC+' from 'B'. "The downgrade follows S&P's ongoing concern on operating performance, including S&P's expectation for very weak credit metrics for 2009, weak liquidity relative to interest payments and operating requirements in 2010, and integration concerns related to the large $72 million acquisition -- with a $20 million cash component -- of AGY Hong Kong Ltd.," said Standard & Poor's credit analyst Paul Kurias. AHF DEVELOPMENT: Substantive Consolidation Denied; Case Dismissed ----------------------------------------------------------------- Bankruptcy Judge Robert L. Jones dismissed the bankruptcy case of AHF Development, Ltd., in an Aug. 17, 2011 Memorandum Opinion, a copy of which is available at http://is.gd/PPuRlcfrom Leagle.com. Dismissal was sought by the United States Trustee and joined by Attebury Family Partnership, L.P. and the 2001 Scott D. Rice Trust. Opposing dismissal and moving to substantively consolidate the case with the bankruptcy case of American Housing Foundation are American Housing Foundation, the Official Unsecured Creditors Committee of American Housing Foundation, and certain investors/creditors. They were later joined by Walter O'Cheskey, the Chapter 11 Trustee of American Housing Foundation. AHF Development, Ltd., filed for Chapter 11 bankruptcy (Bankr. N.D. Tex. Case No. 09-20703) in 2009. At the time of its bankruptcy filing, Development had no ongoing business operations. Several years prior, it served as a "qualified intermediary" for "1031 exchanges" in connection with transactions with Matt Malouf, who became a creditor in the case. Founded as a Texas 501(c)(3) non-profit corporation in 1989, American Housing Foundation owned and operated more than 12,500 residential units, making AHF one of the nation's largest entities primarily dedicated to the workforce housing market. Residents in AHF properties benefit from significantly below market rental rates. AHF was initially placed in Chapter 11 on April 21, 2009, through the filing of an involuntary bankruptcy petition by nine of its creditors. The petitioning creditors were represented by David R. Langston, Esq., at Mullin, Hoard & Brown, in Lubbock, Texas. Robert L. Templeton, who asserted a $5.1 million claim on account of an investment, had the largest claim among the petitioners. AHF opposed the involuntary. On June 11, 2009, AHF filed a voluntary petition (Bankr. N.D. Tex. Case No. 09-20373) to avoid potential issues associated with a non-profit entity consenting to relief in the involuntary action. Judge Robert L. Jones handled the case. Robert Yaquinto, Jr., Esq., at Sherman & Yaquinto, LLP, represented AHF in its restructuring efforts. At the time of the filing, AHF estimated it had assets and debts of $100 million to $500 million. Walter O'Cheskey was later appointed as Chapter 11 trustee. Focus Management Group served as advisor to the trustee. ALION SCIENCE: Incurs $11.5 Million Second Quarter Net Loss ----------------------------------------------------------- Alion Science and Technology Corporation reported a net loss of $11.47 million on $192.79 million of contract revenue for the three months ended June 30, 2011, compared with a net loss of $13.11 million on $213.31 million of contract revenue for the same period during the prior year. The Company also reported a net loss of $32.27 million on $596.11 million of contract revenue for the nine months ended June 30, 2011, compared with a net loss of $11.89 million on $622.59 million of contract revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $616.44 million in total assets, $722.39 million in total liabilities, $154.78 million in redeemable common stock, $20.78 million in common stock warrants, $177,000 in accumulated other comprehensive loss, and a $281.34 million in accumulated deficit. A full-text copy of the Form 10-Q filed with the U.S. Securities and Exchange Commission is available for free at: http://is.gd/w2jCSm About Alion Science Alion Science and Technology Corporation, based in McLean, Virginia, is an employee-owned company that provides scientific research, development, and engineering services related to national defense, homeland security, and energy and environmental analysis. Particular areas of expertise include communications, wireless technology, netcentric warfare, modeling and simulation, chemical and biological warfare, program management. Alion Science reported a net loss of $15.23 million on $833.98 million of contract revenue for the year ended Sept. 30, 2010, compared with a net loss of $17.04 million on $802.22 million of contract revenue during the prior year. * * * Alion carries 'Caa3' corporate family and probability of default Ratings, with stable outlook, from Moody's. Alion carries a 'B-' corporate credit rating, with stable outlook, from Standard & Poor's. Moody's said in March 2010,"The Caa1 corporate family rating would balance the continued high leverage against a promising business backlog that could sustain the good 2009 revenue growth rate, though credit challenges would remain pronounced." ALLEN FAMILY: Rejects H. S. Schwartz Employment Agreement --------------------------------------------------------- Allen Family Foods, Inc., et al., sought and obtained approval from the U.S. Bankruptcy Court for the District of Delaware to reject an employment agreement between Harry S. Schwartz and Allen Family Foods, effective as of Jul. 6, 2011. Any claim for damages arising from the rejection of the Agreement will be filed in accordance with the procedures for filing general unsecured claims to be established by further Court order pursuant to Sections 105(a), 501, 502, and 1111(a) of the Bankruptcy Code and Rules 2002(a)(7), 3003(c)(3), and 5005(a) of the Federal Rules of Bankruptcy Procedure for filing proofs of claim. Any claims not timely filed will be forever barred. About Allen Family Allen Family Foods Inc. is a 92-year-old Seaford, Del., poultry company. Allen Family Foods and two affiliates, Allen's Hatchery Inc. and JCR Enterprises Inc., filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 11-11764) on June 9, 2011. It estimated assets and liabilities between $50 million and $100 million in its petition. Robert S. Brady, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware, serve as counsel to the Debtors. FTI Consulting is the financial advisor. BMO Capital Markets is the Debtors' investment banker. Epiq Bankruptcy Solutions LLC is the claims and notice agent. Lowenstein Sandler PC and Womble Carlyle Sandridge & Rice, PLLC, serve as counsel for the official committee of unsecured creditors. J.H. Cohn LLP serves as the Committee's financial advisor. ALROSE KING: Files Schedules of Assets & Liabilities ---------------------------------------------------- Alrose King David LLC filed with the U.S. Bankruptcy Court for the Eastern District of New York its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------- ----------- A. Real Property $25,000,000 B. Personal Property $0 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $36,447,013 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $2,169,603 ----------- ----------- TOTAL $25,000,000 $38,616,617 Alrose King David LLC is a special entity established by the Alrose Group to own the 143-room, beachfront hotel property called the Allegria Hotel & Spa in Long Beach, Long Island. Alrose King David filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case No. 11-75361) in Brooklyn on July 28, 2011, estimating between $10 million and $50 million in both debts and assets. Judge Dorothy Eisenberg presides over the case. Patrick T. Collins, Esq., at Farrell Fritz, P.C., serves as bankruptcy counsel. The petition was signed by Allen Rosenberg, managing member. AMERICAN NATURAL: Incurs $22,000 Net Loss in Second Quarter ----------------------------------------------------------- American Natural Energy Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $22,071 on $653,951 of revenue for the three months ended June 30, 2011, compared with net income of $91,965 on $725,703 of revenue for the same period during the prior year. The Company also reported a net loss of $642,720 on $1.31 million of revenue for the six months ended June 30, 2011, compared with a net loss of $553,433 on $1.63 million of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $16.98 million in total assets, $9.29 million in total liabilities, and $7.69 million in total stockholders' equity. The Company reported a net loss of $2.06 million on $2.57 million of revenue for the year ended Dec. 31, 2010, compared with net income of $23.95 million on $1.08 million of revenue during the prior year. As reported by the TCR on April 5, 2011, MaloneBailey, LLP, in Houston, Texas, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company incurred a net loss in 2010 and has a working capital deficiency and an accumulated deficit at Dec. 31, 2010. A full-text copy of the Form 10-Q is available for free at: http://is.gd/jeqKx2 About American Natural American Natural Energy Corporation (TSX Venture: ANR.U) is a Tulsa, Oklahoma-based independent exploration and production company with operations in St. Charles Parish, Louisiana. AMERICAN PATRIOT: Incurs $631,700 Second Quarter Net Loss --------------------------------------------------------- American Patriot Financial Group, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $631,736 on $939,663 of total interest and dividend income for the three months ended June 30, 2011, compared with a net loss of $223,248 on $1.40 million of total interest and dividend income for the same period during the prior year. The Company also reported a net loss of $913,621 on $1.93 million of total interest and dividend income for the six months ended June 30, 2011, compared with a net loss of $1.32 million on $2.78 million of total interest and dividend income for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $95.80 million in total assets, $94.54 million in total liabilities, and $1.26 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/CA8HxJ About American Patriot Based in Greenville, Tenn., American Patriot Financial Group, Inc. is a one-bank holding company formed as a Tennessee corporation to own the shares of American Patriot Bank. The Bank is the only subsidiary of the Corporation. American Patriot Bank commenced operations as a state chartered bank on July 9, 2001. The Bank had total assets of roughly $118 million at Dec. 31, 2009. The Bank is not a member of the Federal Reserve System. The Bank's customer base consists primarily of small to medium- sized business retailers, manufacturers, distributors, land developers, contractors, professionals, service businesses and local residents. On Aug. 18, 2010, the Company received from the Federal Deposit Insurance Corporation, a Supervisory Prompt Corrective Action Directive, dated August 17, 2010, due to American Patriot Bank's "significantly undercapitalized" status. The Directive requires that the Bank submit an acceptable capital restoration plan on or before August 31, 2010, providing that, among other things, at a minimum, the Bank will restore and maintain its capital to the level of "adequately capitalized." The Company reported a net loss of $2.29 million on $5.04 million of total interest and dividend income for the year ended Dec. 31, 2010, compared with a net loss of $4.02 million on $6.23 million of total interest and dividend income during the prior year. As reported by the TCR on April 6, 2011, Hazlett, Lewis & Bieter, PLLC, in Chattanooga, Tennessee, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant losses for the past four years resulting in a retained deficit of $5,946,761. At Dec. 31, 2010, the Company and its subsidiary were significantly undercapitalized based on regulatory standards and has consented to an Order to Cease and Desist with its primary federal regulator that requires, among other provisions, that it achieve regulatory capital thresholds that are significantly in excess of its current actual capital levels. The Company's nonperforming assets have increased significantly during 2010 and 2009 related primarily to deterioration in the credit quality of its loans collateralized by real estate. The Company, at the holding company level, has a note payable that was due Feb. 28, 2011; however, the Company does not currently have sufficient funds to pay off this note and it is uncertain whether the lender will renew the note, or whether the Company can raise sufficient capital to pay off the note. This note is securitized by 100% of the stock of the subsidiary. AMERITOX LTD: S&P Withdraws Prelim. 'B' Corporate Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its preliminary 'B' corporate credit rating on Baltimore, Md.-based Ameritox Ltd., at the company's request. Ameritox is a provider of specialized clinical laboratory services. ARCADIA RESOURCES: Incurs $2.8-Mil. Net Loss in June 30 Quarter --------------------------------------------------------------- Arcadia Resources, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $2.79 million on $24.76 million of net revenues for the three months ended June 30, 2011, compared with a net loss of $4.04 million on $24.40 million of net revenues for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $25.85 million in total assets, $48.57 million in total liabilities, and a $22.72 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/GgcZAn About Arcadia HealthCare Arcadia HealthCare is a service mark of Arcadia Resources, Inc. (nyse amex:KAD), and is a leading provider of home care, medical staffing and pharmacy services under its proprietary DailyMed program. The Company, headquartered in Indianapolis, Indiana, has 65 locations in 18 states. Arcadia HealthCare's comprehensive solutions and business strategies support the Company's vision of "Keeping People at Home and Healthier Longer." ASARCO LLC: Baker Botts Takes Home $128.5-Mil. in Fees ------------------------------------------------------ Calling the ASARCO LLC bankruptcy a "truly a rags-to-riches story", Bankruptcy Judge Richard S. Schmidt approved $117,613,158.44 in fees and $6,046,135.06 in expenses requested by Baker Botts LLP, the Debtor's lead counsel, for services performed and expenses incurred in the case. The $117,131,158.44 fee award is comprised of: (1) $113,074,527.74 in fees approved by the Court on an interim basis under section 331 of the Bankruptcy Code and paid to Baker Botts; (2) plus $263,994.74 in additional, unpaid fees incurred by Baker Botts for the period of Nov. 1, 2009, through Dec. 8, 2009; (3) plus $4,161,708.96 as an enhancement on account of, according to Judge Schmidt, the "rare and extraordinary circumstances" in the case and the firm's services in the litigation involving Southern Copper Corporation, which "were instrumental in producing the exceptional results that were unanticipated at case commencement"; (4) minus $112,927.00 in fees charged by Baker Botts to the estates, for which Baker Botts has agreed voluntarily to credit the estates The $6,046,135.06 expense award is comprised of: (1) $6,065,598.58 in expenses approved by the Court on an interim basis under section 331 of the Bankruptcy Code and paid to Baker Botts; (2) minus $19,463.52 in expenses charged by Baker Botts to the estates, for which Baker Botts has agreed voluntarily to credit the estates. The Court also allowed $5,000,000 in fees and $457,443.83 in expenses incurred by Baker Botts in preparing and defending its Fee Application through July 13, 2010. Judge Schmidt's July 20, 2011 Memorandum Opinion noted that the results obtained in the Asarco case are "nothing short of extraordinary" and that the Asarco bankruptcy case "is probably the most successful Chapter 11 of any magnitude in the history of the [Bankruptcy] Code." Baker Botts' expert, retired bankruptcy lawyer Paul Wickes, explained that he is "not aware of a case in which the ultimate result was so much better than what would have been expected at commencement." The Court agrees. Judge Schmidt said Baker Botts performed in an extraordinary fashion in numerous areas, but perhaps most notably in trying and obtaining a multi-billion-dollar judgment against ASARCO's parent company, Americas Mining Corporation, relating to the sale of ASARCO's controlling ownership interest in Southern Copper Corporation. The judgment obtained by Baker Botts against AMC is likely the largest fraudulent transfer judgment in chapter 11 history. Creditors ultimately received payment in full of all claims, plus post-petition interest and allowed attorneys' fees. Such an extraordinary result would have seemed far fetched at the outset of these cases, the judge said. The Court's ruling enumerates Baker Botts' achievements in the case, and include the firm's significant role in repairing the severed relationship ASARCO had with its workforce when it assisted the Company in settling the 2005 strike, negotiating a new collective bargaining agreement with the unions, and resolving a number of problems that had arisen in connection with employee benefit and pension plans. Grupo Mexico SAB acquired Asarco in a hostile take-over in 1999. According to a Wall Street Journal recount, Grupo Mexico was sued on the grounds that the Asarco bankruptcy was part of an elaborate scheme to strip the Debtor of valuable copper mines in South America, while shielding Grupo Mexico from environmental clean-up claims by the U.S. government and 19 Western states. A judge in Brownsville, Texas, ruled the maneuver amounted to fraudulent conveyance and imposed a $6 billion judgment on Grupo Mexico. Besides ruling against Grupo Mexico on the conveyance of Asarco's foreign assets, the bankruptcy proceedings also ordered that the Mexican company establish a $1.79 billion fund for remediation at 80 former Asarco sites across the U.S. The U.S. Trustee did not object to the final approval and allowance of either the fees and expenses charged by Baker Botts to the estates during the Application Period, or the fees and expenses requested by Baker Botts for the preparation and defense of the Fee Application. However, the U.S. Trustee has objected to the final approval and allowance of the 20% increase requested by Baker Botts. The U.S. Trustee contends that if the Court deems any increase proper, the increase should be limited to 5% of the amount of fees charged by Baker Botts to the estates during the Application Period. No other party has objected to the Fee Application. A copy of Judge Schmidt's Memorandum is available at http://is.gd/4tsFm2from Leagle.com. About Asarco LLC Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. ASARCO LLC filed for Chapter 11 protection (Bankr. S.D. Tex. Case No. 05-21207) on Aug. 9, 2005. Attorneys at Baker Botts L.L.P., and Jordan, Hyden, Womble & Culbreth, P.C., represented the Debtor in its restructuring efforts. On Dec. 9, 2009, Grupo Mexico, S.A.B., consummated the Chapter 11 plan that it sponsored for Asarco LLC. The Plan, which was confirmed both by the bankruptcy and district courts, reintegrated Asarco LLC back to parent Grupo Mexico concluding the four-year Chapter 11 proceeding. ASARCO LLC: 5th Cir. Says Reimbursement to Bidders Was Proper ------------------------------------------------------------- The bankruptcy court authorized ASARCO LLC to reimburse qualified bidders for expenses incurred in connection with the sale of a substantial asset of the Debtor's estate. The bankruptcy court determined that the reimbursements were proper under the business judgment standard in section 363(b) of the Bankruptcy Code. ASARCO's parent companies, Americas Mining Corporation and ASARCO Incorporated, appealed the order to the district court. The district court found no error and affirmed. Subsequently, the district court confirmed the Parent's bankruptcy reorganization plan, pursuant to which the Parent regained control of ASARCO. The Parent and ASARCO appeal the bankruptcy court's reimbursement order to the U.S. Court of Appeals for the Fifth Circuit. In an Aug. 16, 2011 decision, Circuit Judges Jerry E. Smith and Carl E. Stewart affirmed, saying ASARCO's reimbursement motion satisfied the business judgment standard; there was no evidence in the record of self-dealing or manipulation among the parties who negotiated the reimbursement procedures; the Reimbursement Order facilitated, not hindered, the auction process; and the approved maximum available size of the reimbursement fee was reasonable. The appellate case is ASARCO, Incorporated; Americas Mining Corporation; ASARCO, L.L.C., Appellants, v. Elliott Management; The Baupost Group, Appellees, No. 10-40930 (5th Cir.). A copy of the decision, penned by Judge Stewart, is available at http://is.gd/p0VnqUfrom Leagle.com. About Asarco LLC Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. ASARCO LLC filed for Chapter 11 protection (Bankr. S.D. Tex. Case No. 05-21207) on Aug. 9, 2005. Attorneys at Baker Botts L.L.P., and Jordan, Hyden, Womble & Culbreth, P.C., represented the Debtor in its restructuring efforts. On Dec. 9, 2009, Grupo Mexico, S.A.B., consummated the Chapter 11 plan that it sponsored for Asarco LLC. The Plan, which was confirmed both by the bankruptcy and district courts, reintegrated Asarco LLC back to parent Grupo Mexico concluding the four-year Chapter 11 proceeding. AUTOPARTS HOLDINGS: S&P Assigns 'B+' Corporate Credit Rating ------------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'B+' corporate credit rating to Danbury, Conn.-based Autoparts Holdings Ltd. The rating outlook is stable. "At the same time, we assigned our 'B+' issue rating and '3' recovery rating on the proposed senior secured first-lien credit facility, which includes a five-year $50 million first-lien revolving credit facility and a six-year $530 million first-lien term loan B. Subsidiaries Fram Group Holdings Inc., Prestone Holdings Inc., and Fram Group (Canada) Inc. are co-borrowers under the revolver. Fram Group Holdings and Prestone Holdings are co- borrowers under the first- and second-lien term loans," S&P related. "We also assigned our 'B-' issue rating and '6' recovery rating to the 6.5-year $150 million second-lien term loan," S&P said. "The ratings on APH reflect its fair business risk profile, characterized by relatively steady revenue growth and double-digit margins, but also a concentrated customer base," said Standard & Poor's credit analyst Nancy Messer. They also reflect the company's highly leveraged financial risk profile with low free cash flow generation, adjusted debt leverage under 5x, and ownership by New Zealand private investor Graeme Hart's Rank Group Ltd. "We estimate APH's sales will rise about 4%, year over year, to $1.1 billion in 2011 and again in 2012 because many of its products are consumables and the amount of miles driven is recovering. Pro forma for the proposed transaction, we expect lease- and pension-adjusted total debt to EBITDA to be about 4.5x in 2011, and a reduction to around 3.6x in 2012 is possible if cash flow reduces debt. We view APH's free cash flow generation as low relative to its debt load, but we also view its ability to generate positive free cash as important to the rating. In the near term, we expect free cash flow to be suppressed by the cost of restructuring and capital spending, but by 2013 the company could be able to convert around 100% of net income to free cash flow, in our estimates," S&P related. AUTOS VEGA: Creditor Mulling Cash Use Objection ----------------------------------------------- Creditor and party-in-interest Emilio Vega, asks the U.S. Bankruptcy Court for the District of Puerto Rico to extend the time to file an objection to Autos Vega, Inc.'s request to obtain credit. Mr. Vega informs the Court that it will be filing an objection but he still has to discuss it with all of the stockholders. Mr. Vega tells the Court that it is important to gather more information on the matter to properly assess it and object in detail. As reported in the Troubled Company Reporter on Aug. 15, 2011, the Debtor , and secured creditor Reliable Finance Holding Company asked the Court to approve their joint stipulation authorizing Debtor's use of Reliable Finance's cash collateral, on an interim basis, for the period commencing on July 6, 2011, through and including Jan. 31, 2012. Mr. Vega is represented by: Marena S. Ramirez, Esq. WILLIAMESTRELLA, Attorneys & Counselors P. O. Box 9023596 San Juan, PR 00902-3596 Tel: (787) 977-5050 Fax: (787) 977-5090 E-mail: mramirez@welo.net About Autos Vega Autos Vega, Inc., is a car dealership engaged in the sales of new and used cars and trucks car parts, accessories and providing vehicle repair and maintenance, based in San Juan, Puerto Rico. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. P.R. Case No. 11-05773) on July 6, 2011. The case has been assigned to Judge Sara E. DeJesus Kellogg. The Debtor estimated its assets and debts at US$10 million to US$50 million. Antonio A. Arias-Larcada, Esq., and Yarilyn C. Perez-Colon, Esq., at McConnell Valdes LLC, in San Juan, Puerto Rico, serve as counsel to the Debtor. Luis R. Carrasquillo Ruiz, CPA, is the Debtor's accountant. AVIS BUDGET: DBRS Says 'B' Issue Rating Unaffected by Q2 Results ---------------------------------------------------------------- DBRS Inc. has commented that the ratings of Avis Budget Group, Inc., including its Issuer Rating of B (high), are unaffected following the Company's announcement of 2Q11 financial results. The trend on all ratings is Stable. DBRS views Avis Budget's results as demonstrating solid underlying momentum across the franchise with revenues and adjusted EBITDA improving across all business segments amid good underlying trends in industry fundamentals. For the quarter, Avis Budget reported a pre-tax profit, on a GAAP basis, of $89 million compared to pre- tax profit of $29 million a year ago. Revenue generation continued its recent positive trajectory. To this end, the quarter's strong results were driven by a 9% year-on-year increase in revenues to $1.4 billion. The growth in revenues reflects higher transaction volumes across all three business segments as rental demand continues to recover from recessionary lows partially offset by a slight decline in pricing. Importantly, 2Q11 was the fourth consecutive quarter of positive year-on-year revenue growth, demonstrating that the benefits of the Company's investment in the brands are being realized. Furthermore, the Company's results benefited from lower fleet costs which were helped by the still healthy used vehicle market. Fleet costs per unit were a noteworthy 30% lower year-on-year, benefiting from strong used vehicle residual values and Avis' continuing shift to utilizing alternative disposition channels. During the quarter, direct operating costs remained contained at 51% of total revenues. EBITDA, adjusted to only include interest and depreciation expense related to the vehicle fleet and exclude restructuring and transaction related costs, increased 95% year-on-year to $191 million. Adjusted EBITDA margins grew by 600 basis points, driven by the lower fleet costs, reduced funding costs and cost containment actions implemented by management. DBRS sees the noteworthy improvement as reflecting the impact of growth initiatives implemented by management as well as the continuing strengthening in industry fundamentals. Indeed, total car rental days increased 8%, evidencing the strengthening recovery in commercial and leisure travel along with the strength of the Avis and Budget brands. Pricing, or time and mileage revenue per day, declined 2% in the United States, reflecting competitive pricing conditions, as the industry was over-fleeted as Avis, similar to its competitors, held fleet to protect against potential vehicle supply disruptions stemming from events in Japan. Moreover, the slightly lower pricing reflects the faster pace growth in off- airport and leisure rentals, which tend to have longer duration and lower pricing when compared to commercial rentals. The positive trajectory continued by operating segment. For the quarter, Domestic Car rental revenue increased 8% year-on-year, while International Car rental revenue improved 20%. Importantly, adjusted EBITDA increased an impressive 177% year-on-year in the Domestic Car rental segment to $144 million, illustrating the improving operating environment resulting from an increase in rental demand. For the quarter, Truck Rental generated $103 million of revenue, a 3% increase year-on-year on solid 10% growth in transaction volumes, partially offset by a 5% decline in pricing reflecting a 40% increase in commercial rentals, which tend to have longer duration but lower pricing. DBRS notes that Truck Rental reported adjusted EBITDA of $18 million, a 13% year- on-year increase and the best second quarter since becoming a standalone company. DBRS sees the results of Truck Rental as indicating that the repositioning and streamlining of the segment is driving improved results. Liquidity and funding continues to be solid and well-managed. At June 30, 2011, corporate liquidity totaled a sound $2.9 billion. Moreover, the Company has no corporate debt maturities until 2014. BARBETTA LLC: Taps Mark O'Neal, Robin Boylan as Property Brokers ---------------------------------------------------------------- Barbetta, LLC, asks the U.S. Bankruptcy Court for the Eastern District of North Carolina for permission to employ: Mark O'Neal PICKETT-SPROUSE REAL ESTATE 3805-A University Drive Durham, NC 27707 and Robin Boylan NAI BH Commercial 410 Executive Park Ashevilla, NC 28801 As brokers, Messrs. O'Neal and Boylan will assist the Debtor in the marketing and selling of the Debtor's real properties. Mr. O'Neal will market and sell the property located in 427 E. Maple Drive, Burlington, North Carolina, and Mr. Boylan will be the broker for property located in 5,8, and 12 Barbetta Drive, Asheville, North Carolina. The Debtor proposes to pay commissions to Messrs. O'Neal and Boylan, along with the buyer's agent, 6% commission based upon the total gross sale price. To the best of the Debtor's knowledge, Messrs. O'Neal and Boylan are "disinterested persons" as that term is defined in section 101(14) of the Bankruptcy Code. About Barbetta LLC Based in Selma, North Carolina, Barbetta, LLC -- formerly doing business as Hester 1996 Family Limited Partnership, South Pollock Street Development & Sign Co., LLC, Hester 5, LLC, and Hester 8, LLC -- filed for Chapter 11 bankruptcy (Bankr. E.D.N.C. Case No. 11-04370) on June 6, 2011. Judge J. Rich Leonard presides over the case. Trawick H. Stubbs, Jr., at Stubbs & Perdue, P.A., serves as the Debtor's bankruptcy counsel. The accounting firm of David J. Bradley, CPA, will perform and supervise the accounting of the Debtor. Charles E. Hester, serves as member-manager of the Debtor. In its schedules filed together with the petition, the Debtor disclosed $24,889,321 in total assets and $12,855,596 in total liabilities. The petition was signed by Charles E. Hester, member manager. Charles and Barbetta Hester also filed a separate Chapter 11 petition (Bankr. E.D.N.C. Case No. 11-04375) on June 6, 2011. BERNARD L. MADOFF: Feeder Files Adversary Suits to Recoup $18-Mil. ------------------------------------------------------------------ Carolina Bolado at Bankruptcy Law360 reports that Fairfield Sentry Ltd., once the largest feeder fund to Bernard L. Madoff's securities firm, launched five adversary suits Wednesday in New York seeking to recover more than $18 million in shareholder distributions related to Madoff's Ponzi scheme. In the suits, Fairfield, which has been ordered to return $3 billion to the victims of Madoff's fraud, targets investors in Fairfield Sigma Ltd., an offshore euro currency fund in the British Virgin Islands that was heavily invested in Fairfield Sentry, Law360 relates. 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. BLACK RAVEN: Incurs $1 Million Net Loss in Second Quarter --------------------------------------------------------- Black Raven Energy, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $1.02 million on $123,000 of total operating revenue and other income for the three months ended June 30, 2011, compared with a net loss of $1.14 million on $88,000 of total operating revenue and other income for the same period during the prior year. The Company also reported a net loss of $1.96 million on $356,000 of total operating revenue and other income for the six months ended June 30, 2011, compared with a net loss of $1.24 million on $230,000 of total operating revenue and other income for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $13.47 million in total assets, $24.05 million in total liabilities, and a $10.58 million total stockholders' deficit. The Company reported a net loss of $3.26 million on $469,000 of total revenue for the year ended Dec. 31, 2010, compared with net income of $20.71 million on $460,000 of total revenue during the prior year. According to the Company, cash and cash equivalents on hand and internally generated cash flows may not be sufficient to execute its business plan. Future bank financings, asset sales, or other equity or debt financings will be required to fund the Company's debt service, working capital requirements, planned drilling, potential acquisitions and other capital expenditures. These conditions raise substantial doubt about the Company's ability to continue as a going concern. As reported by the TCR on April 21, 2011, Deloitte & Touche LLP, in Denver, Colorado, noted that the Company's recurring losses from operations and stockholders' deficit raise 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/OJGHiq About Black Raven Denver, Colo.-based Black Raven Energy, Inc., formerly known as PRB Energy, Inc., currently operates as an independent energy company engaged in the acquisition, exploitation, development and production of natural gas and oil in the Rocky Mountain Region of the United States. On Feb. 2, 2009, in connection with its emergence from bankruptcy, PRB Energy changed its corporate name to Black Raven Energy, Inc. On March 5, 2008, PRB Energy, Inc. and its subsidiaries filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Colorado. On Jan. 16, 2009, the Bankruptcy Court entered an order confirming PRB Energy reorganization plan. The Plan became effective Feb. 2, 2009. BONDS.COM GROUP: Expands Into Latin America Through Red Kite Pact ----------------------------------------------------------------- Bonds.com Group, Inc., entered an agreement with Red Kite Americas LLC for Red Kite to market the Bonds.com trading system, BondsPro, into qualified Latin American institutional investors, on an exclusive basis. Red Kite will distribute BondsPro primarily in Brazil, Colombia, and Mexico through its affiliation with Brazilian based Archers Capital Participatoes e Investimentos S.A. With this agreement, the Company expects Latin American institutions will join the global BondsPro trading network. BondsPro clients will have access to Latin American fixed income liquidity and trading in the burgeoning Latin America market. Latin American buy side institutions and banks would conversely have access to and trade with Bonds.com's global client base. The BondsPro model significantly reduces the cost of supply meeting demand in the fixed income markets. This is achieved by matching buyers and sellers in an "all-to-all" fair and equal electronic trading environment. The net result for clients is that Bonds.com creates the opportunity to achieve best execution. Trading is available in U.S. dollar denominated Global Corporate Credit: Investment Grade, High Yield, and Emerging Markets; and Mortgage and Asset Backed securities. Red Kite and its management have an extensive network of client relationships in Latin America. Red Kite Americas delivers third party solutions for trading and liquidity management to a range of clients. It builds and integrates customized solutions for banks, brokers, hedge funds, and money managers looking to improve connectivity, liquidity management and efficiency in day-to-day interactions with Latin and global markets. George O'Krepkie, president of Bonds.com said: "Efficient delivery of cross border liquidity and execution is now an imperative rather than a luxury for professional fixed income traders worldwide. With our expansion into Latin America through Red Kite we have now provided our clients with access to these growing markets and we have added another piece of the puzzle to building a truly global network. We are confident that the Red Kite relationship will not only benefit our clients and our new Latin American relationships, but will aid in global capital flow." Dennis Rodrigues, Managing Member of Red Kite, said: "The BondsPro trading platform is the most advanced system for bond trading. Latin American institutions are keen to have efficient access to global trading. The ability to provide these markets with access to all other clients in the network simultaneously means that Latin American liquidity will both enhance and benefit from participation." Red Kite's compensation pursuant to this Marketing Agreement will be comprised of: (a) a flat fee in the amount of $175 for each transaction in fixed income instruments executed on the Company's trading platform by clients referred to Bonds.com, Inc., by Red Kite; (b) a warrant to purchase 2,857,143 shares of Bonds.com, common stock at an exercise price of $0.07 per share, which will be issued to Red Kite immediately; and (c) additional warrants to purchase shares of Bonds.com's common stock, with the number of shares issuable under and exercise price of those warrants determined based on 5% of the net revenue in excess of $100,000 the Company generates from clients referred to the Company by Red Kite and the 20-day weighted average price of the Company's common stock at the end of each 12-month period under the Marketing Agreement. Pursuant to the Marketing Agreement, effective Aug. 11, 2011, Bonds.com issued the Initial Warrant to Red Kite. Additionally, pursuant to the terms of the Marketing Agreement, Bonds.com may from time to time issue Additional Warrants to Red Kite. About Bonds.com Group Based in Boca Raton, Florida, Bonds.com Group, Inc. (OTC BB: BDCG) -- http://www.bonds.com/-- through its subsidiary Bonds.com, Inc., serves institutional fixed income investors by providing a comprehensive zero subscription fee online trading platform. The Company designed the BondStation and BondStationPro platforms to provide liquidity and competitive pricing to the fragmented Over- The-Counter Fixed Income marketplace. The Company differentiates itself by offering through Bonds.com, Inc. an inventory of more than 35,000 fixed income securities from more than 175 competing sources. Asset classes currently offered on BondStation and BondStationPro, the Company's fixed income trading platforms, include municipal bonds, corporate bonds, agency bonds, certificates of deposit, emerging market debt, structured products and U.S. Treasuries. The Company reported a net loss applicable to common stockholders of $12.51 million on $2.71 million of revenue for the year ended Dec. 31, 2010, compared with a net loss applicable to common stockholders of $4.69 million on $3.90 million of revenue during the prior year. As reported by the TCR on May 9, 2011, Daszkal Bolton LLP, in Boca Raton, Fla., in its audit reports for the years ended Dec. 31, 2009, and Dec. 31, 2010, expressed substantial doubt about the Company's ability to continue as a going concern. The auditors noted that the Company has sustained recurring losses and has negative cash flows from operations. "We have a history of operating losses since our inception in 2005, and have a working capital deficit of approximately $4.4 million and an accumulated deficit of approximately $28.6 million at Dec. 31, 2010, which together raises doubt about the Company's ability to continue as a going concern," the Company acknowledged in the Form 10-K. The Company's balance sheet at March 31, 2011, showed $6.26 million in total assets, $11.29 million in total liabilities and a $5.03 million stockholders' deficit. BONITA BEACH: Case Summary & 16 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Bonita Beach Road Properties, Inc. 11921 Saradrienne Lane Bonita Springs, FL 34135 Bankruptcy Case No.: 11-15472 Chapter 11 Petition Date: August 17, 2011 Court: U.S. Bankruptcy Court Middle District of Florida (Ft. Myers) Debtor's Counsel: Timothy W. Gensmer, Esq. TIMOTHY W. GENSMER, PA 2831 Ringling Boulevard, Suite 202-A Sarasota, FL 34237 Tel: (941) 952-9377 Fax: (941) 954-5605 E-mail: timgensmer@aol.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 16 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/flmb11-15472.pdf The petition was signed by Robert McClain, president. Affiliate that filed separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Robert B. McClain 11-07945 04/27/11 BORDERS GROUP: Agree in Default on Six Mortgage Loans ----------------------------------------------------- Agree Realty Corporation disclosed that directly or indirectly because of the Chapter 11 bankruptcy filing of Borders Group, Inc., it is in default on six mortgage loans for properties leased to Borders, according to the Company's August 5, 2011, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2011. The Company has six mortgaged properties leased to Borders that serve as collateral for six non-recourse loans, including four mortgages that are cross-defaulted and cross-collateralized. The first defaulted loan had a principal amount outstanding of approximately $2.3 million as of June 30, 2011, and is secured by a leasehold interest in the Borders store in Lawrence, Kansas, with 20,000 square feet of GLA. Borders vacated the store and rejected the lease in April 2011 and the leasehold mortgage has not been paid since April 15, 2011. The second defaulted loan had a principal amount outstanding of approximately $5.6 million as of June 30, 2011, and is secured by the Borders corporate headquarters in Ann Arbor, Michigan, with 330,322 square feet of GLA. Borders has continued to pay its monthly rent for the property. The remaining four defaulted Crossed Loans had an aggregate principal amount outstanding of approximately $9.2 million as of June 30, 2011, and are secured by the Borders stores in Oklahoma City, Oklahoma; Columbia, Maryland; Germantown, Maryland; and one of the Borders stores in Omaha, Nebraska. In April 2011, Borders vacated the Oklahoma City store of 24,641 square feet and rejected the lease and stopped making rental payments. While the Chapter 11 bankruptcy filing of Borders is not a direct event of default under the four Crossed Loans, as a result of the Oklahoma City store closure and lease rejection, the Company did not pay $36,410 in monthly debt service for the loan associated with that location, which was due in the months of May, June and July 2011. As a result of the Borders liquidation program, the Company would not expect to have sufficient cash flow from the properties to continue to pay any of the debt service on the loan and may elect not to pay the debt service. About Borders Group Borders Group operates book, music and movie superstores and mall- based bookstores. At Jan. 29, 2011, the Debtors operated 642 stores, under the Borders, Waldenbooks, Borders Express and Borders Outlet names, as well as Borders-branded airport stores in the United States, of which 639 stores are located in the United States and 3 in Puerto Rico. In addition, the Debtors operate a proprietary e-commerce Web site, http://www.Borders.com/, launched in May 2008, which includes both in-store and online e-commerce components. As of Feb. 11, 2011, Borders employed a total of 6,100 full-time employees, 11,400 part-time employees, and approximately 600 contingent employees. Borders Group Inc. and its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. Lead Case No. 11-10614) in Manhattan on Feb. 16, 2011. David M. Friedman, Esq., David S. Rosner, Esq., Andrew K. Glenn, Esq., and Jeffrey R. Gleit, Esq., at Kasowitz, Benson, Torres & Friedman LLP, in New York, serve as counsel to the Debtors. Jefferies & Company's Inc. is the financial advisor. DJM Property Management is the lease and real estate services provider. AP Services LLC is the interim management and restructuring services provider. The Garden City Group, Inc., is the claims and notice agent. Attorneys at Morgan, Lewis & Bockius LLP, and Riemer & Braunstein LLP, serve as counsel to the DIP Agents. Lowenstein Sandler represents the official unsecured creditors committee for Borders Group. Bruce S. Nathan and Bruce Buechler, members of Lowenstein Sandlers' Bankruptcy, Financial Reorganization & Creditors' Rights Group, are leading the team. The Debtor disclosed $1.28 billion in assets and $1.29 billion in liabilities as of Dec. 25, 2010 Borders Group is closing 399 stores. Borders selected proposals by Hilco and Gordon Brothers to conduct going out of business sales for all stores after no going concern offers of higher value were submitted by the deadline. Bankruptcy Creditors' Service, Inc., publishes BORDERS GROUP BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by Borders Group Inc., the United States' second largest bookstore chain. (http://bankrupt.com/newsstand/or 215/945-7000 BRADLEY WARKENTIN: Court Allows Bank's Claim for Attorney's Fees ---------------------------------------------------------------- Bankruptcy Judge Randall L. Dunn allowed One West Bank, FSB's claim for postpetition attorney's fees and costs against the estate of Bradley Ray Warkentin. Judge Dunn overruled the Debtor's objection to the claim and allowed the full amount of the amended claim as secured. On Aug. 8, 2006, Mr. Warkentin executed and delivered a Promissory Note in favor of American Mortgage Network, Inc., dba American Mortgage Network of Oregon in the principal amount of $224,000. Payment of the Note was secured by a deed of trust on certain real property located in Bend, Oregon. One West is the successor in interest to American Mortgage. In his Schedules A and D filed in Bankruptcy Court, Mr. Warkentin valued the Property at $90,000. He included One West as a secured creditor in Schedule D, with a security interest in the Property valued at $90,000 and an unsecured claim for $134,000. On June 14, 2010, Mr. Warkentin filed and served on One West a motion to value the Property at $90,000. One West did not file a response to the Motion, and on July 7, 2010, an order was entered granting the Valuation Motion. On Sept. 24, 2010, One West filed a proof of claim, claiming a secured claim with respect to the Property in the total amount of $227,824.63, calculated as of the petition date. On Nov. 16, 2010, Mr. Warkentin filed his initial draft Plan of Reorganization. In the Initial Plan, Mr. Warkentin included One West in two classes: Class 13 to be treated as secured to the extent of $90,000 and to receive payments of $483.14 a month, at 5% interest amortized over 30 years; and Class 14 to be treated as unsecured to the extent of $137,825 and to receive 60 equal payments of $223.00, without interest, in full satisfaction of One West's unsecured claim. On Jan. 5, 2011, One West filed an election to have its Claim treated as fully secured, pursuant to 11 U.S.C. Sec. 1111(b)(2) and F.R.B.P. Rule 3014. On Jan. 28, 2011, Mr. Warkentin filed his Second Amended Plan of Reorganization. One West was classified in a single class, with its Claim to bear interest at the rate of 5% per annum and to be paid in monthly payments of $483.14 for 360 months, with a further balloon payment of $53,894.23 to be paid in the 361st month. One West objected to confirmation of the Second Plan, arguing 1) that it was not feasible; 2) that it was not "fair and equitable" for purposes of 11 U.S.C. Sec. 1129(b); 3) that it did not provide for payment of property taxes and insurance with respect to the Property; and 4) that the proposed 5% interest rate was too low, among other things. One West's objection to confirmation of the Second Plan was filed after the deadline for filing objections to the Second Plan and the related disclosure statement set in the scheduling order for the confirmation hearing. The Confirmation Hearing was held on March 21, 2011. At the Confirmation Hearing, the Court struck the late filed objection of One West and confirmed the Second Plan, with modifications as ordered at the Confirmation Hearing. An order granting Mr. Warkentin's motion to strike the late filed objection of One West was entered on March 29, 2011. An Order Confirming Plan prepared by counsel for Mr. Warkentin, was entered on March 31, 2011. The Court allowed One West's claim "as a secured claim in the full amount of Proof of Claim No. 10, i.e. $227,824.63." In addition, the monthly payment amount to One West was increased to $554.15, with the balance owing on the claim to be "paid not later than 361 months after the Effective Date of the Plan." On April 22, 2011, One West filed an amended proof of claim, increasing its secured claim to $228,874.63. Although the Amended Claim is only $1,050 greater than the amount of One West's claim that the Court allowed in the Confirmation Order, One West represents that the Amended Claim "includes a total of $1,350.00 in post-petition attorney's fees and costs." On May 9, 2011, Mr. Warkentin objected to the Amended Claim because it included postpetition attorney's fees. Mr. Warkentin argues that it is not appropriate for One West to claim postpetition attorney's fees because it is undersecured, citing 11 U.S.C. Sec. 506(b). Mr. Warkentin recognizes that One West elected to have its entire claim treated as secured pursuant to Sec. 1111(b), but he essentially argues that is immaterial because the value of the Property is less than the claim amount. Mr. Warkentin did not object to the attorney's fee claim based on reasonableness. One West filed its Response on June 10, 2011, arguing that its Amended Claim including postpetition attorney fees was appropriate, primarily relying on the Ninth Circuit's decision in SNTL Corp. et al. v. Centre Ins. Co. (In re SNTL Corp.), 571 F.3d 826 (2009). A copy of Judge Dunn's Aug. 16, 2011 Memorandum Opinion is available at http://is.gd/jIZl6rfrom Leagle.com. Based in Bend, Oregon, Bradley Ray Warkentin -- aka Brad R. Warkentin or Bradley R. Warkentin, and dba AAA Building Maintenance -- filed for Chapter 11 bankruptcy (Bankr. D. Ore. Case No. 10-35332) on June 7, 2010. Judge Randall L. Dunn presides over the case. Anthony V. Albertazzi, Esq. -- ecfnotices@albertazzilaw.com -- served as the Debtor's bankruptcy counsel. According to his schedules, the Debtor said assets total $1,146,880 while debts total $1,857,146. BROOKLYN FEDERAL: Reports Net Income of $65,000 in June 30 Quarter ------------------------------------------------------------------ Brooklyn Federal Bancorp, Inc., reported net income of $65,000 for the three months ended June 30, 2011, compared with a net loss of $9.97 million for the three months ended June 30, 2010. Net interest income before provision for loan losses decreased $2.8 million, or 52.7%, to $2.5 million for the three months ended June 30, 2011, compared to $5.3 million for the three months ended June 30, 2010. Loss before income tax benefit was $333,000 for the third quarter of fiscal 2011, compared to a loss before income tax benefit of $17.77 million for the third quarter of fiscal 2010. The primary reasons for the increase in net income were the decrease in the provision for loan losses of $11.2 million and a decrease in other-than-temporary impairment of securities of $10.3 million, which were partially offset by a decrease in interest income of $3.2 million, an increase in professional fees of $585,000 and a reduction in income tax benefit of $7.4 million. For the nine months ended June 30, 2011, the net loss was $5.67 million, compared to a net loss of $21.01 million for the nine months ended June 30, 2010. Net interest income before provision for loan losses decreased $7.0 million, or 40.6%, to $10.3 million for the nine months ended June 30, 2011, from $17.3 million for the nine months ended June 30, 2010. The Company's balance sheet at June 30, 2011, showed $469.93 million in total assets, $429.20 million in total liabilities, and stockholders' equity of $40.73 million. Going Concern The Company and Brooklyn Federal Savings Bank are subject to enforcement actions and other requirements imposed by federal banking regulators. The Bank is subject to a Cease and Desist Order issued by the Office of Thrift Supervision on March 31, 2011, that required, among other things, the Bank to implement an updated business plan to improve the Bank's core earnings, reduce expenses, maintain an appropriate level of liquidity and achieve profitability. The Bank Order also required that the Bank achieve and maintain a Tier 1 Capital Ratio equal to or greater than 10% and a Total Risk-Based Capital Ratio equal to or greater than 15%, after the funding of its allowance for loan and lease losses, by April 30, 2011. As of April 30, 2011, the Bank did not meet these capital requirements. As the holding companies of the Bank, the Company and BFS Bancorp, MHC, are subject to a separate but related Cease and Desist Order issued by the OTS on the same date as the Bank's Order, which required, among other terms, that the Company and BFS Bancorp, MHC, ensure the Bank's compliance with the terms of the Bank Order. "These factors give rise to substantial doubt as to the Company's ability to continue as a going concern." A copy of the Form 10-Q is available at http://is.gd/dyPKln Brooklyn Federal Bancorp, Inc., is the holding company for Brooklyn Federal Savings Bank, a federally chartered savings bank headquartered in Brooklyn, New York. The Bank operates five full- service offices, two located in Brooklyn, one in Nassau and two in Suffolk County, New York. BROOKLYN FEDERAL: Announces Merger With Investors Bancorp --------------------------------------------------------- Investors Bancorp, Inc. (NASDAQ: ISBC) and Brooklyn Federal Bancorp, Inc. (NASDAQ: BFSB) announced Wednesday the signing of a definitive merger agreement under which Investors Bancorp, Inc., will acquire Brooklyn Federal Bancorp, Inc., for $0.80 per share or approximately $10.3 million in the aggregate. In addition, Investors Bancorp, Inc., entered into a separate agreement with a real estate investment fund to sell most of Brooklyn Federal Bancorp, Inc.'s commercial real estate loan portfolio immediately following the completion of the merger transactions. The terms of the merger agreement specify that Brooklyn Federal Bancorp, Inc., BFS Bancorp, MHC, and Brooklyn Federal Savings Bank, will merge with and into Investors Bancorp, Inc., Investors Bancorp, MHC and Investors Savings Bank, respectively. After the mergers, Brooklyn Federal Bancorp, Inc.'s shareholders, other than BFS Bancorp, MHC, will receive $0.80 in cash for each common share they held before the mergers resulting in a total cash payment of $2.9 million. Shares of such stock held by BFS Bancorp, MHC, will be converted into common shares of Investors Bancorp, Inc. Depositors of Brooklyn Federal Savings Bank will become depositors of Investors Savings Bank, and will have the same rights and privileges in Investors Savings Bank, as if their accounts had been established in Investors Savings Bank on the date established at Brooklyn Federal Savings Bank. The mergers have been approved by the boards of directors of each company and are expected to close in the fourth quarter of 2011, subject to customary closing conditions including regulatory approvals and approval by Brooklyn Federal Bancorp, Inc.'s shareholders and Brooklyn Bancorp, MHC's members, as may be necessary under applicable regulatory guidance. Neither Investors Bancorp, Inc.'s shareholders, nor Investors Bancorp, MHC's depositors are required to approve the mergers. "We are pleased to announce the acquisition of Brooklyn Federal whose branch network will further enhance our expansion into New York," said Kevin Cummings, President and CEO of Investors Bancorp, Inc. "We are committed to providing Brooklyn Federal's customers with the same high level of service to which they have become accustomed." Gregg Wagner, President and CEO of Brooklyn Federal Bancorp, Inc., commented, "The merger with Investors will allow us to maintain, expand and enhance services and products for our customers. In addition, the expanded branch network will benefit the customers of both institutions." RBC Capital Markets, LLC acted as financial advisor to Investors Bancorp, Inc., and Luse Gorman Pomerenk & Schick, P.C., acted as its legal advisor. Sandler O'Neill + Partners, L.P. acted as financial advisor to Brooklyn Federal Bancorp, Inc., and Paul Hastings LLP acted as its legal advisor. About Investors Bancorp Investors Bancorp, Inc. is the holding company for Investors Savings Bank, which operates from its corporate headquarters in Short Hills, New Jersey, and as of June 30, 2011, had 80 branch offices located throughout New Jersey and New York. About Brooklyn Federal Bancorp Brooklyn Federal Bancorp, Inc., is the holding company for Brooklyn Federal Savings Bank, a federally chartered savings bank headquartered in Brooklyn, New York. The Bank operates five full- service offices, two located in Brooklyn, one in Nassau and two in Suffolk County, New York. BUCKTOWN STATION: Court Gives Liquidation Plan a Chance ------------------------------------------------------- Bankruptcy Judge Jack B. Schmetterer tossed a request by PNC Bank National Association to modify the automatic stay so it may proceed with a foreclosure action on Bucktown Station LLC's condominium building. Although the Debtor lacks equity in its property, the judge said the Debtor has proposed a plan showing a reasonable possibility of a successful reorganization if the market improves and prospective customers come back into the home market over three years. However, Judge Schmetterer conditioned the denial of the bank's request on the Debtor proposing a Plan that provides for case dismissal should specified benchmarks on tunes and amounts of sales at reasonable intervals not be met. The Debtor's proposed Plan provides for a staged sell off of the condominiums over a three-year period. The Debtor assumes that it will sell the residential condominiums for an average of $475,000 each and the retail condominium at the very end of the Plan period for $825,000. Under that Plan, the net sale proceeds will be used to repay creditors. Secured creditors and unsecured creditors with claims under $4,000 are each to receive 100% of their allowed claims, while unsecured creditors with claims over $4,000 are each to receive 3% of their allowed claims. The Debtor intends to challenge the amounts claimed by some mechanics lien creditors, so only their claims as expected to be allowed after that process are included in the Debtor's projections. The Debtor and PNC have stipulated that the claims secured by the Property total $5,771,902.24. However, the present value of the Property is only in a range between $4,030,000 and $4,690,000. Should the Debtor's Plan succeed and the proposed sales take place, the Debtor will have generated $7,408,225.49 in revenue. The Debtor projects that this will be enough to repay its creditors according to the Plan, to pay necessary expenses, and to maintain the Property throughout the Plan period. A copy of Judge Schmetterer's Aug. 18, 2011 Findings of Fact and Conclusions of Law is available at http://is.gd/cZuhAbfrom Leagle.com. About Bucktown Station Bucktown Station is a triangle-shaped development at Western and Winnebago avenues has 15 two-and-three bedroom units, 21 indoor parking spaces and 3,000-square-feet of retail space. Bucktown Station, LLC, filed for Chapter 11 protection (Bankr. N.D. Ill. Case No. 11-02004) in Chicago on Jan. 19, 2011. Karen J. Porter, Esq., at Porter Law Firm, in Chicago, represents the Debtor. The Debtor estimated assets of $1 million to $10 million and debts of up to $50,000 in its Chapter 11 petition. The petition was signed by Bruce A. Fogelson, managing member. BURT REYNOLDS: Faces Foreclosure on Florida Mansion --------------------------------------------------- Lalate News reports that actor Burt Reynolds hasn't made mortgage payments to Merrill Lynch Credit Corp. on his massive mansion in Hobe Sound, Florida, since September of last year. And now the mansion is facing foreclosure. The report relates that the estate's appraised value by the local tax assessors' office is $2.4 million. Mr. Reynolds attempted to sell the mansion in 2009 for $8.9 million. He reportedly had no offers near his listing price. According to the report, Mr. Reynolds bought the mansion during his marriage to Loni Anderson is facing foreclosure. Loni Anderson and Burt Reynolds moved into the house in the 1990s. Two years later, Reynolds suffered a Chapter 11 bankruptcy. Reynolds was able to rebound and keep the house. But now, Reynolds' lender claims he hasn't made mortgage payments since 2010. So it has filed to foreclose against the mansion Reynolds calls "paradise". CABIN HOLLOW: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Cabin Hollow Enterprises, LLC 275 Thunder Gust Mill Road Wellsville, PA 17365 Bankruptcy Case No.: 11-05675 Chapter 11 Petition Date: August 15, 2011 Court: United States Bankruptcy Court Middle District of Pennsylvania (Harrisburg) Judge: Robert N. Opel II Debtor's Counsel: Lawrence G. Frank, Esq. THOMAS, LONG, NIESEN AND KENNARD 212 Locust Street, Suite 500 Harrisburg, PA 17101 Tel: (717) 234-7455 Fax: (717) 236-8278 E-mail: lawrencefrank@earthlink.net Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Sara E. Mummert, member. CALPIAN INC: Posts $758,900 Net Loss in Q2 Ended June 30 -------------------------------------------------------- Calpian, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $758,882 on $430,143 of revenues for the three months ended June 30, 2011, compared with a net loss of $297,602 on $nil revenue for the same period last year. The Company reported a net loss of $1.3 million on $855,919 of revenues for the six months ended June 30, 2011, compared with a net loss of $314,023 on $0 revenue for the same period last year. The Company's balance sheet at June 30, 2011, showed $5.3 million in total assets, $2.1 million in total liabilities, and stockholders' equity of $3.2 million. Whitley Penn LLP, in Dallas, Texas, expressed substantial doubt about Calpian's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has incurred net operating losses since inception and management does not believe that available cash resources, anticipated revenues from operations, and current funding commitments will be sufficient to satisfy the Company's near term capital requirements. A copy of the Form 10-Q is available at http://is.gd/RgYvhg Based in Dallas, Texas, Calpian, Inc., is in the business of acquiring recurring monthly residual income streams derived from credit card processing fees paid by retail stores in the United States. CALPINE CORP: Releases Remaining Stock, Resolves All Claims ----------------------------------------------------------- Calpine Corporation, which emerged from bankruptcy in January 2008, said it has authorized the release of approximately 19.8 million shares of Calpine common stock from reserves that had previously been set aside to satisfy bankruptcy claims that were not resolved at the date of emergence. This release represents the full and final distribution of shares from the reserve account, completing the implementation of the Company's confirmed Plan of Reorganization. "With this distribution, we will have fully resolved all claims associated with our bankruptcy," said Zamir Rauf, Calpine's Chief Financial Officer. "We are pleased to bring closure to this issue, now focusing the investing community's attention on the positive outlook we have for Calpine's future instead of technical matters from the past." Shares held in the reserve were included in the Company's 486 million weighted average shares outstanding as of June 30, 2011, and distribution of these shares does not represent the issuance of new or additional equity. The release of reserve shares will have no impact on the Company's earnings or cash flow. The timing of when shares will actually be made available to claimants is dependent upon processes to be performed by the Company's transfer agent, which are expected to be complete on or before August 24, 2011. Furthermore, certain of the reserve share distributions will be made to indenture trustees (as the holders of Allowed Claims under the Plan of Reorganization) on behalf of their ultimate owners. uch owners should contact their respective trustee with any questions regarding the receipt of their shares, including those concerning timing and the amount of their ultimate distribution. About Calpine Headquartered in Houston, Texas, Calpine Corp. is a major U.S. independent power company that owns 93 operating power plants with an aggregate generation capacity of nearly 29,000. For the 12 months ending June 30, 2010, Calpine had operating revenues of $6.4 billion. The Company and its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 05-60200) on Dec. 20, 2005. Richard M. Cieri, Esq., Matthew A. Cantor, Esq., Edward Sassower, Esq., and Robert G. Burns, Esq., Kirkland & Ellis LLP, represented the Debtors in their restructuring efforts. Michael S. Stamer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represented the Official Committee of Unsecured Creditors. As of Aug. 31, 2007, the Debtors had total assets of $18.467 billion, total liabilities not subject to compromise of $11.207 billion, total liabilities subject to compromise of $15.354 billion and stockholders' deficit of $8.102 billion. On Feb. 3, 2006, two more affiliates, Geysers Power Company, LLC, and Silverado Geothermal Resources, Inc., filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 06-10197 and 06-10198). On September 20, 2007, Santa Rosa Energy Center, LLC, another affiliate, also filed a voluntary Chapter 11 petition (Bankr. S.D.N.Y. Case No. 07-12967). On June 20, 2007, the Debtors filed their Chapter 11 Plan and Disclosure Statement. On Aug. 27, 2007, the Debtors filed their Amended Plan and Disclosure Statement. Calpine filed a Second Amended Plan on Sept. 19, 2007 and on Sept. 24, 2007, filed a Third Amended Plan. On Sept. 25, 2007, the Court approved the adequacy of the Debtors' Disclosure Statement and entered a written order on Sept. 26. On Dec. 19, 2007, the Court confirmed the Debtors' Plan. The Amended Plan was deemed effective as of Jan. 31, 2008. CAPMARK FINANCIAL: Files Third Amended Joint Reorganization Plan ---------------------------------------------------------------- BankruptcyData.com reports that Capmark Financial Group filed with the U.S. Bankruptcy Court a Third Amended Joint Plan of Reorganization. The Plan consists of fourteen separate Chapter 11 Plans: one Plan for each of the proponent Debtors that will emerge as a reorganized entity. The Court approved the Debtors' related Disclosure Statement on July 8, 2011 and an August 19, 2011 confirmation hearing was scheduled. About Capmark Financial Based in Horsham, Pennsylvania, Capmark Financial Group Inc. -- http://www.capmark.com/-- provides financial services to investors in commercial real estate-related assets. Capmark has three core businesses: lending and mortgage banking, investments and funds management, and servicing. Capmark operates in North America, Europe and Asia. Capmark has 1,000 employees located in 37 offices worldwide. On Oct. 25, 2009, Capmark Financial and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 (Bankr. D. Del. Lead Case No. 09-13684). Capmark disclosed assets of US$20 billion against total debts of US$21 billion as of June 30, 2009. Capmark's financial advisors are Lazard Freres & Co. LLC and Loughlin Meghji + Company. Capmark's bankruptcy counsel is Dewey & LeBoeuf LLP. Richards, Layton & Finger, P.A., serves as local counsel. Beekman Advisors, Inc., is serving as strategic advisor. KPMG LLP is tax and accounting advisor. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. The Official Committee of Unsecured Creditors in Capmark Financial Group Inc.'s cases tapped Kramer Levin Naftalis & Frankel LLP as its counsel and JR Myriad LLC as its commercial real estate business advisors. The Committee also retained Cutler Pickering Hale and Dorr LLP as its attorneys for the special purpose of providing legal services in connection with Federal Deposit Insurance Corporation matters. Protech Holdings C LLC, an affiliate of Capmark, filed for Chapter 11 protection on July 29, 2010 (Bankr. D. Del. Case No. 10-12387). The Debtor estimated assets and debts in excess of $1 billion as of the filing date. Since filing for Chapter 11, Capmark completed three sales to generate more than $1 billion in cash. Berkshire Hathaway Inc. and Leucadia National Corp. bought most of the business for $468 million. In April 2011, Greenline Ventures LLC completed the acquisition of the New Markets Tax Credit division of Capmark Financial Group Inc. Since inception of the NMTC program, Capmark's NMTC division has closed over $1.1 billion of NMTC investment funds and financed over $2.5 billion of projects and businesses in low income communities nationwide. CASCO HOTEL: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: CASCO Hotel Group, LLC 2701 Tower Oaks Boulevard, Suite 200 Rockville, MD 20852 Bankruptcy Case No.: 11-26880 Chapter 11 Petition Date: August 17, 2011 Court: U.S. Bankruptcy Court District of Maryland (Greenbelt) Judge: Paul Mannes Debtor's Counsel: Lawrence P. Block, Esq. STINSON MORRISON HECKER 1150 18th Street, NW, Suite 800 Washington, DC 20036 Tel: (202) 785-9100 E-mail: lblock@stinson.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The list of unsecured creditors filed together with its petition does not contain any entry. The petition was signed by Craig S. Cohen, member. Affiliate that filed separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Congressional Hotel Corporation 11-26732 08/15/11 CHINA RUITAI: Reports $1.4 Million Second Quarter Net Income ------------------------------------------------------------ China Ruitai International Holdings Co., Ltd., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting net income of $1.37 million on $11.72 million of sales for the three months ended June 30, 2011, compared with net income of $1.41 million on $11.17 million of sales for the same period a year ago. The Company also reported net income of $2.10 million on $21.31 million of sales for the six months ended June 30, 2011, compared with net income of $3.35 million on $21.41 million of sales for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $129.61 million in total assets, $96.87 million in total liabilities, and $32.74 million in total equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/EOFoGI About China Ruitai Shandong, China-based China Ruitai International Holdings Co., Ltd., was organized under the laws of the State of Delaware on Nov. 15, 1955, under the name "Inland Mineral Resources Corp." Currently, the Company, through its wholly-owned subsidiary, Pacific Capital Group Co., Ltd., a corporation incorporated under the laws of the Republic of Vanuatu, and its majority-owned subsidiary, TaiAn RuiTai Cellulose Co., Ltd., a Chinese limited liability company, is engaged in the production, sales, and exportation of deeply processed chemicals, with a primary focus on non-ionic cellulose ether products in the People's Republic of China as well as to the United States, Europe, Japan, India and South Korea. As reported by the TCR on April 8, 2011, Bernstein & Pinchuk LLP, in New York, after auditing the Company's financial statements for the year ended Dec. 31, 2010, expressed substantial doubt about China Ruitai's ability to continue as a going concern. The independent auditors noted that the Company has negative working capital. CICERO INC: Incurs $540,000 Net Loss in Second Quarter ------------------------------------------------------ Cicero Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $540,000 on $1.09 million of total operating revenue for the three months ended June 30, 2011, compared with a net loss of $423,000 on $1.30 million of total operating revenue for the same period during the prior year. The Company also reported a net loss of $975,000 on $1.82 million of total operating revenue for the six months ended June 30, 2011, compared with a net loss of $1.51 million on $1.78 million of total operating revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $4.74 million in total assets, $12.37 million in total liabilities and a $7.63 million in total stockholders' deficit. The Company reported a net loss of $459,000 on $2.97 million of total operating revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.28 million on $2.49 million of total operating revenue during the prior year. As reported by the TCR on April 6, 2011, Marcum LLP, in Bala Cynwyd, Pennsylvania, noted that the Company's recurring losses from operations and working capital deficiency raise substantial doubt about its ability to continue as a going concern. The Company has extended the maturity dates of several debt obligations that were due in 2011 to 2012, to assist with liquidity and may attempt to extend these maturities again if necessary. Despite the recent additions of several new clients, the Company continues to struggle to gain additional sources of liquidity on terms that are acceptable to the Company. A full-text copy of the Form 10-Q is available for free at: http://is.gd/42KEdU About Cicero Inc. Cary, N.C.-based Cicero, Inc., provides business integration software solutions and also provides technical support, training and consulting services as part of its commitment to providing customers with industry-leading solutions. The Company focuses on the customer experience management market with emphasis on desktop integration and business process automation with its Cicero XM(TM) products. Cicero XM enables the flow of data between different applications, regardless of the type and source of the application, eliminating redundant entry and costly mistakes. CIRTRAN CORP: Delays Filing of 2nd Quarter Form 10-Q ---------------------------------------------------- CirTran Corporation's quarterly report on Form 10-Q for the quarter ended June 30, 2011, could not be filed without unreasonable effort or expense within the prescribed time period because management requires additional time to compile and verify the data required to be included in the report. According to the Company, the report will be filed within five days of the date the original report was due. About CirTran Corporation West Valley City, Utah-based CirTran Corporation (OTC BB: CIRC) -- http://www.CirTran.com/-- markets and manufactures energy drinks under the Playboy brand pursuant to a license agreement with Playboy Enterprises, Inc. The Company also provides turnkey manufacturing services and products using various high-tech applications for electronics manufacturers in various industries. The Company reported a net loss of $4.95 million on $9.04 million of net sales for the year ended Dec. 31, 2010, compared with a net loss of $5.81 million on $9.73 million of net sales during the prior year. The Company's balance sheet at March 31, 2011, showed $4.40 million in total assets, $32.12 million in total liabilities, and a $27.72 million total stockholders' deficit. As reported by the TCR on April 21, 2011, Hansen, Barnett & Maxwell, P.C., Salt Lake City, Utah, noted that the Company has an accumulated deficit, has suffered losses from operations and has negative working capital that raise substantial doubt about its ability to continue as a going concern. CNS RESPONSE: Reports $873,000 Net Profit in June 30 Quarter ------------------------------------------------------------ CNS Response, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net profit of $873,400 on $197,800 of revenue for the three months ended June 30, 2011, compared with a net loss of $1.50 million on $159,200 of revenue for the same period during the prior year. The Company also reported a net loss of $6.17 million on $537,400 of revenue for the nine months ended June 30, 2011, compared with a net loss of $4.75 million on $481,000 of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $1.36 million in total assets, $10.46 million in total liabilities and a $9.10 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/Qbyu3O About CNS Response Aliso Viejo, Calif.-based CNS Response, Inc., is a cloud-based neurometric company focused on analysis, research, development and the commercialization of a patented platform which allows psychiatrists and other physicians to exchange outcome data referenced to electrophysiology. With this information, physicians can make more informed decisions when treating individual patients with behavioral (psychiatric and/or addictive) disorders. The Company's secondary Clinical Services business, operated by its wholly-owned subsidiary, Neuro-Therapy Clinic ("NTC"), is a full service psychiatric clinic. Cacciamatta Accountancy Corporation, in Irvine, California, expressed substantial doubt about CNS Response'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 of the Company's continued operating losses and limited capital. COMMONWEALTH BANKSHARES: Incurs $26.2 Million Net Loss in Q2 ------------------------------------------------------------ Commonwealth Bankshares, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $26.21 million on $11.54 million of total interest and dividend income for the three months ended June 30, 2011, compared with a net loss of $2.51 million on $14.99 million of total interest and dividend income for the same period a year ago. The Company also reported a net loss of $32.96 million on $23.69 million of total interest and dividend income for the six months ended June 30, 2011, compared with a net loss of $3.43 million on $29.93 million of total interest and dividend income for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $985.87 million in total assets, $990.17 million in total liabilities, and a $4.30 million total deficit. "We have completely restructured our credit risk management process," said President and CEO Chris Beisel. "Nearly all of our efforts during the past 13 months have been on managing our problem loans and rebuilding a new credit environment. Our focus has been on little else. If our efforts to raise capital are successful, then we will have most of the credit issues behind us and we'll be positioned for the future." As reported by the TCR on May 31, 2011, Witt Mares, PLC, in Norfolk, Virginia, expressed substantial doubt about Commonwealth Bankshares' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that of the Company's continued operating losses and deterioration of the loan portfolio, undercapitalized status, liquidity restrictions, and other restrictions as a result of regulatory agreements. Effective July 1, 2011, Bank of the Commonwealth entered into a Prompt Corrective Action Directive with the Board of Governors of the Federal Reserve System. The Directive requires that within 30 days of the effective date of the Directive or such additional time as the Board of Governors may permit, the Bank, in conjunction with the Company must, among other things, increase the Bank's equity through the sale of shares or contributions to surplus in an amount sufficient to make the Bank adequately capitalized. The Bank was not able to meet the 30-day timeline prescribed by the Directive for reaching the required capital levels. The Board of Governors, as outlined in the Directive, may permit additional time as they see fit. The Company and the Bank's management and Board of Directors have implemented a capital plan with various alternatives to reach and maintain the required capital levels. This plan was originally accepted by the Federal Reserve in 2010 in response to the Written Agreement. An updated capital restoration plan was submitted to the Federal Reserve in June 2011, due to the Company's immediate capital needs. This plan was not accepted by the Federal Reserve since the Company had not received any firm commitments for new capital. If the Company does not raise sufficient amounts of new equity capital, or alternatively, execute another strategic initiative, the Company may become subject to a voluntary or involuntary bankruptcy filing and the Company believes it is possible that the Bank could be placed into FDIC receivership by bank regulators or acquired by a third party in a transaction in which the Company receives no value for its interest in the Bank. A full-text copy of the Form 10-Q is available for free at: http://is.gd/othPbL About Commonwealth Bankshares Norfolk, Va.-based Commonwealth Bankshares, Inc., (Nasdaq:CWBS) -- http://www.bankofthecommonwealth.com/-- is the parent of Bank of the Commonwealth which opened its first office in Norfolk, Virginia, in 1971. Bank of the Commonwealth has 21 bank branches strategically located throughout the Hampton Roads and Eastern North Carolina regions. COMMUNITY SHORES: Files Form 10-Q, Reports $522,000 Q2 Net Loss --------------------------------------------------------------- Community Shores Bank Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $522,319 on $2.75 million of total interest and dividend income for the three months ended June 30, 2011, compared with a net loss of $1.19 million on $3.07 million of total interest income for the same period during the prior year. The Company also reported a net loss of $1.25 million on $5.55 million of total interest income for the six months ended June 30, 2011, compared with a net loss of $1.63 million on $6.10 million of total interest income for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $223.78 million in total assets, $223.96 million in total liabilities, and a $185,815 total shareholders' deficit. As reported by the TCR on April 6, 2011, Crowe Horwath LLP, in Grand Rapids, Michigan, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant recurring operating losses, is in default of its note payable collateralized by the stock of its wholly-owned bank subsidiary, and the subsidiary bank is undercapitalized and is not in compliance with revised minimum regulatory capital requirements under a formal regulatory agreement which has imposed limitations on certain operations. The Company reported a net loss of $8.88 million on $6.95 million of net interest income for 2010, compared with a net loss of $4.96 million on $6.79 million of net interest income for 2009. A full-text copy of the Form 10-Q is available for free at: http://is.gd/O1xe2d About Community Shores Muskegon, Mich.-based Community Shores Bank Corporation, organized in 1998, is a Michigan corporation and a bank holding company. The Company owns all of the common stock of Community Shores Bank. The Bank was organized and commenced operations in January 1999 as a Michigan chartered bank with depository accounts insured by the FDIC to the extent permitted by law. The Bank provides a full range of commercial and consumer banking services primarily in the communities of Muskegon County and Northern Ottawa County. CONQUEST PETROLEUM: Incurs $1.7 Million Second Quarter Net Loss --------------------------------------------------------------- Conquest Petroleum Incorporated 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 $301,402 of total revenues for the three months ended June 30, 2011, compared with a net loss of $8.13 million on $323,816 of total revenues for the same period during the prior year. The Company also reported a net loss of $3.42 million on $591,269 of total revenues for the six months ended June 30, 2011, compared with a net loss of $10.47 million on $650,697 of total revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $2 million in total assets, $31.24 million in total liabilities, and a $29.24 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/DVkucv About Conquest Petroleum Spring, Tex.-based Conquest Petroleum Incorporated (OTC BB: CQPT) -- http://www.conquestpetroleum.com/-- is an independent oil and natural gas company engaged in the production, acquisition and exploitation of oil and natural gas properties geographically focused on the onshore United States. The Company's operational focus is the acquisition, through the most cost effective means possible, of production or near production of oil and natural gas field assets. The Company's areas of operation include Louisiana and Kentucky. The Company reported a net loss of $14.49 million on $1.24 million of total revenues for the year ended Dec. 31, 2010, compared with a net loss of $23.26 million on $914,781 of total revenues during the prior year. As reported by the TCR on April 21, 2011, M&K CPAS, PLLC, in Houston, Texas, noted that Conquest Petroleum has insufficient working capital and reoccurring losses from operations, all of which raises substantial doubt about its ability to continue as a going concern. CONSOL ENERGY: Moody's Reviews 'Ba3' Corporate for Upgrade ---------------------------------------------------------- Moody's Investors Service placed CONSOL Energy Inc.'s Ba3 corporate family and probability of default ratings as well as all of the company's instrument ratings under review for possible upgrade. The review is prompted by CONSOL's announcement that it has entered into an agreement with Noble Energy, Inc. (Noble; Baa2, stable) for the joint development of CONSOL's 663,350 Marcellus Shale acres in Pennsylvania and West Virginia, with each party taking a 50% interest. The transaction is expected to close on September 30, 2011. The review results from Moody's expectation that the agreement provides strategic benefit to CONSOL in that it incorporates significant cash payments over the next several years, allows for the acceleration of drilling activity and producing wells, and reduces CONSOL's otherwise substantive capital expenditure requirements to develop the Marcellus Shale acreage. The review will mainly focus on CONSOL's expected use of the proceeds from the transaction, final terms and structure of the joint venture including corporate governance, structure of the Board and the parties' respective rights and obligations, changes in CONSOL's total projected capital expenditures related to its gas division, and the expected production profile of the joint venture. In particular, while the management reaffirmed its 2015 gas production goal of 350 billion cubic feet despite the 50% reduction in its Marcellus ownership share, the review will address the changes in the production volume and cost dynamics in the interim years. Moody's also notes that the closing of the transaction is subject to consent from holders of CONSOL's outstanding senior notes, clarifying that the contemplated transaction is permitted under the indentures. On Review for Possible Upgrade: Issuer: CONSOL Energy Inc. -- Probability of Default Rating, Placed on Review for Possible Upgrade, currently Ba3 -- Corporate Family Rating, Placed on Review for Possible Upgrade, currently Ba3 -- Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Upgrade, currently B1 Outlook Actions: Issuer: CONSOL Energy Inc. -- Outlook, Changed To Rating Under Review From Stable The principal methodology used in rating CONSOL was the Global Mining Industry Methodology published in May 2009. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009 (and/or) the Government-Related Issuers methodology published in July 2010. CONSOL is a leading diversified fuel producer in the Eastern U.S. It has 4.4 billion tons of coal reserves and 3.7 trillion cubic feet of proven gas reserves. The company generated $5.6 billion in revenues for the twelve months through June 30, 2011. CONTESSA PREMIUM: Debtor Changes Name to Contessa Liquidating ------------------------------------------------------------- Contessa Premium Foods, Inc., a California corporation, sought and obtained authority from the U.S. Bankruptcy Court for the Central District of California to change its name and to revise the case caption to reflect its new name "Contessa Liquidating Co., Inc." The Court-approved sale of substantially all of the Debtor's operating assets to Premium Foods Acquisition, Inc., which has been renamed Contessa Premium Foods, Inc., a Delaware corporation, for approximately $51,000,000 in cash and assumed liabilities closed on Jul. 15, 2011. The Asset Purchase Agreement requires the Debtor to change its corporate and company name to a name that is not similar to or confusing with its current name. Accordingly, on Jul. 18, 2011, the Debtor filed with the California Secretary of State a certificate of amendment to its articles of incorporation changing its name to Contessa Liquidating Co., Inc. About Contessa Premium San Pedro, California-based Contessa Premium Foods, Inc., fka ZB Industries, Inc., and Contessa Food Products, Inc., provides farm raised shrimp, convenience meals, stir-fry vegetables, and other frozen food products that are marketed and sold primarily in the United States and to a lesser extent in Canada, Europe, Asia, and Mexico. Contessa Premium filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 11-13454) on Jan. 26, 2011. Craig A. Wolfe, Esq., and Jason R. Alderson, Esq., at Kelley Drye & Warren LLP, in New York, represent the Debtor as counsel. Jeffrey N. Pomerantz, Esq., and Jeffrey W. Dulberg, Esq., at Pachulski Stang Ziehl & Jones LLP, in Los Angeles, serve as conflicts counsel for the Debtor. Scouler & Company, LLC, serves as financial advisors. Imperial Capital, LLC, serves as investment banker. Holthouse Carlin & Van Trigt LLP serves as auditors and accountants. The Debtor scheduled $49,370,438 in total assets and $35,305,907 in total liabilities. The Official Committee of Unsecured Creditors in the Debtor's Chapter 11 case is represented by Arent Fox LLP. FTI Consulting Inc. serves as its financial consultants. COVINA PALMS: Case Summary & 15 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Covina Palms Center, LLC 2404 Wilshire Blvd., Suite 12A Los Angeles, CA 90015 Bankruptcy Case No.: 11-44683 Chapter 11 Petition Date: August 15, 2011 Court: United States Bankruptcy Court Central District of California (Los Angeles) Judge: Ernest M. Robles Debtor's Counsel: Stephen F. Biegenzahn, Esq. THE LAW OFFICE OF STEPHEN BIEGENZAHN 611 W 6th St Ste 850 Los Angeles, CA 90017 Tel: (213) 617-0017 Fax: (480) 247-5977 E-mail: efile@sfblaw.com Estimated Assets: $0 to $50,000 Estimated Debts: $10,000,001 to $50,000,000 A list of the Company's 15 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb11-44683.pdf The petition was signed by Michael Kamen, managing member. CREATIVE VISTAS: Incurs $76,000 Net Loss in Second Quarter ---------------------------------------------------------- Creative Vistas, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $76,148 on $9.93 million of contract and service revenue for the three months ended June 30, 2011, compared with a net loss of $647,156 on $10.31 million of contract and service revenue for the same period a year ago. The Company also reported a net loss of $6,336 on $18.95 million of contract and service revenue for the six months ended June 30, 2011, compared with a net loss of $1.06 million on $19.54 million of contract and service revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $10.87 million in total assets, $25.61 million in total liabilities and a $14.74 million total shareholders' deficiency. A full-text copy of the Form 10-Q is available for free at: http://is.gd/XkJYVb About Creative Vistas Headquartered in Whitby, Ontario, Canada, Creative Vistas, Inc., provides security-related technologies and systems. The Company also provides the deployment of broadband services to the commercial and residential market. The Company primarily operates through its subsidiaries AC Technical Systems Ltd. and Iview Digital Video Solutions Inc., to provide integrated electronic security-related technologies and systems. As reported by the TCR on April 8, 2011, Kingery & Crouse PA, in Tampa, Florida, expressed substantial doubt about Creative Vistas' ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and has working capital and stockholder deficiencies. The Company reported a net loss of $681,807 on $39.87 million of revenues for 2010, compared with a net loss of $1.60 million on $39.77 million of revenues for 2009. CROSS BORDER: Incurs $66,600 Net Loss in Second Quarter ------------------------------------------------------- Cross Border Resources, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $66,597 on $2.09 million of total revenues and gains for the three months ended June 30, 2011, compared with a net loss of $1,143 on $957,307 of total revenues and gains for the same period during the prior year. The Company also reported a net loss of $221,513 on $3.69 million of total revenues and gains for the six months ended June 30, 2011, compared with net income of $237,308 on $1.96 million of total revenues and gains for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $26.37 million in total assets, $8.07 million in total liabilities, and $18.30 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/mMP679 About Cross Border Resources Cross Border Resources, Inc. f/k/a Doral Energy Corp. (OTC BB: DRLY) -- http://www.DoralEnergy.com/-- is a licensed oil and gas operator in the state of New Mexico. The Company is headquartered in Midland, Texas. As reported in the Troubled Company Reporter on Nov. 23, 2010, MaloneBailey, LLP, in Houston, Texas, expressed substantial doubt about Doral Energy's ability to continue as a going concern following the Company's results for the fiscal year ended July 31, 2010. The independent auditors noted that the Company has negative working capital and recurring losses from operations. CRYSTALLEX INT'L: Incurs $10.1 Million Second Quarter Net Loss -------------------------------------------------------------- Crystallex International Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 6-K reporting a net loss and comprehensive loss of US$10.14 million for the three months ended June 30, 2011, compared with a net loss and comprehensive loss of US$13.14 million for the same period a year ago. The Company also reported a net loss and comprehensive loss of US$25.09 million for the six months ended June 30, 2011, compared with a net loss and comprehensive loss of US$21.34 million for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed US$33.56 million in total assets, US$120.24 million in total liabilities, and a $86.68 million total shareholders' deficiency. As at June 30, 2011, the Company had negative working capital of $86.4 million, including cash and cash equivalents of $18.4 million. Management estimates that its existing cash and cash equivalents will be sufficient to meet its on-going requirements in 2011; however, without receipt of additional sources of financing, will not be sufficient to pay the principal amount of the $100 million notes payable due on Dec. 23, 2011. The unilateral cancellation of the Mine Operating Contract by the Corporacion Venezolana de Guayana and the subsequent arbitration claim may impact on the Company's ability to raise financing. The Company said these material uncertainties raise substantial doubt as to its ability to meet its obligations as they come due and, accordingly, as to the appropriateness of the use of accounting principles applicable to a going concern. A full-text copy of the Form 6-K is available for free at: http://is.gd/l4ZLSD About Crystallex International Based in Toronto, Canada, Crystallex International Corporation (TSX: KRY) (NYSE Amex: KRY) -- http://www.crystallex.com/-- is a Canadian-based company, which has been granted the Mine Operating Contract to develop and operate the Las Cristinas gold properties located in Bolivar State, Venezuela. CST INDUSTRIES: Moody's Downgrades CFR to 'B3'; Outlook Negative ---------------------------------------------------------------- Moody's Investors Service downgraded Corporate Family Rating of CST Industries, Inc. to B3 from B2, and lowered the company's rated bank facilities (revolver and term loan) to B2 from B1. The rating outlook remains negative. RATINGS RATIONALE The downgrade primarily reflects expectations for continued weakness in near-term financial performance and near-term concerns about covenant compliance. Given the extremely limited amount of headroom under CST's financial covenants for the quarter ended June 30, 2011 and their tightening over the upcoming quarters per credit agreement amendment dated November 2010, Moody's is concerned that the company could violate its covenants in the second half of 2011. The operating environment and demand for the company's storage tanks and covers continues to remain challenged and hasn't picked up as rapidly as previously expected due to less than robust end-market fundamentals. Moody's believes that CST's business lines focused on municipal end markets could be especially challenged over the near to intermediate term in light of the deteriorating state and local government finances. The negative outlook not only reflects Moody's concerns about the impact on CST of challenging operating conditions across some of its end markets but also the uncertainty regarding refinancing and/or the successful amendment of its bank facilities allowing for additional headroom under its financial covenants. The ratings could be downgraded if the company is unable to satisfactorily amend or refinance its bank facilities . The ratings could also be lowered if adjusted leverage is expected to rise above current levels, free cash flow is expected to be negative, end market fundamentals do not show improvement in the near term, or CST pursues any activity that would further constrain liquidity or covenant compliance. The outlook could be stabilized upon refinancing or bank facilities amendment, and if order activity improved such that adjusted leverage decreases by at least one turn. Ratings downgraded: - Corporate Family Rating to B3 from B2 - Probability of Default Rating to B3 from B2 - $17 million bank revolver due December 2012 to B2 (LGD3; 36%) from B1 (LGD3; 37%) - $132 million sr secured term loan B due August 2013 to B2 (LGD3; 36%) from B1 (LGD3; 37%) Outlook remains negative. The principal methodology used in rating CST Industries was the Global Steel Industry Methodology published in January 2009. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. CST Industries, Inc., headquartered in Kansas City, Kansas, is a global manufacturer and erector of pre-engineered factory-coated storage tanks and aluminum geodesic domes, covers and roofing systems. CST's products are used in municipal water, agricultural, wastewater, oilfield, alternative energy, plastics, chemicals, dry bulk and architectural markets. DED DEVELOPMENT: Case Summary & Largest Unsecured Creditor ---------------------------------------------------------- Debtor: DED Development, LLC 890 Front Road Monaca, PA 15061 Bankruptcy Case No.: 11-25140 Chapter 11 Petition Date: August 15, 2011 Court: United States Bankruptcy Court Western District of Pennsylvania (Pittsburgh) Debtor's Counsel: Robert O. Lampl, Esq. 960 Penn Avenue, Suite 1200 Pittsburgh, PA 15222 Tel: (412) 392-0330 Fax: (412) 392-0335 E-mail: rol@lampllaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 In its list of 20 largest unsecured creditors, the Company placed only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Sebring & Associates Businesss Debt $35,184 2735 Mosside Blvd. Monroeville, PA 15146 The petition was signed by David T. DeLuco, president. DELTATHREE INC: Files Form 10-Q, Incurs $1.6MM Net Loss in Q2 ------------------------------------------------------------- deltathree, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $1.62 million on $2.20 million of revenue for the three months ended June 30, 2011, compared with a net loss of $813,000 on $3.39 million of revenue for the same period during the prior year. The Company also reported a net loss of $1.59 million on $5.99 million of revenue for the six months ended June 30, 2011, compared with a net loss of $1.28 million on $6.46 million of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $1.66 million in total assets, $5.07 million in total liabilities, and a $3.41 million total stockholders' deficiency. As reported in the TCR on March 23, 2011, Brightman Almagor Zohar & Co., in Tel Aviv, Israel, expressed substantial doubt about deltathree, Inc.'s ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that of the Company's recurring losses from operations and deficiency in stockholders' equity. Bankruptcy Warning In view of the Company's current cash resources, nondiscretionary expenses, debt and near term debt service obligations, the Company may begin to explore all strategic alternatives available to it, including, but not limited to, a sale or merger of the Company, a sale of its assets, recapitalization, partnership, debt or equity financing, financial reorganization, liquidation or ceasing operations. In the event that it is unable to secure additional funding, the Company may determine that it is in its best interests to voluntarily seek relief under Chapter 11 of the U.S. Bankruptcy Code. The Company said seeking relief under the U.S. Bankruptcy Code, even if the Company is able to emerge quickly from Chapter 11 protection, could have a material adverse effect on the relationships between the Company and its existing and potential customers, employees, and others. Furthermore, the Company adds, if it was unable to implement a successful plan of reorganization, the Company might be forced to liquidate under Chapter 7 of the U.S. Bankruptcy Code. A full-text copy of the Form 10-Q is available for free at: http://is.gd/wTwccK About deltathree Based in New York, deltathree, Inc. (OTC QB: DDDC) -- http://www.deltathree.com/-- is a global provider of video and voice over Internet Protocol (VoIP) telephony services, products, hosted solutions and infrastructures for service providers, resellers and direct consumers. DENNIS BROWN: Case Summary & 17 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Dennis Brown Shaolin Wu-Shu Training Center, LLC 982 Largo Center Dr., Largo, MD 20774 Bankruptcy Case No.: 11-26830 Chapter 11 Petition Date: August 16, 2011 Court: United States Bankruptcy Court District of Maryland (Greenbelt) Judge: Wendelin I. Lipp Debtor's Counsel: Sharon Theodore-Lewis, Esq. PATRICK HENRY LLP 9470 Annapolis Rd, Suite 312 Lanham, MD 20706 Tel: (240) 296-3488 E-mail: stlewis@patrickhenry.net Estimated Assets: $50,001 to $100,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 17 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mdb11-26830.pdf The petition was signed by Dennis Brown, manager. DPAC TECHNOLOGIES: Incurs $34,600 Net Loss in Second Quarter ------------------------------------------------------------ DPAC Technologies Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $34,571 on $2.24 million of net sales for the quarter ended June 30, 2011, compared with a net loss of $93,020 on $1.98 million of net sales for the same period a year ago. The Company also reported a net loss of $225,607 on $4.25 million of net sales for the six months ended June 30, 2011, compared with a net loss of $188,840 on $3.75 million of net sales for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $9.69 million in total assets, $7.20 million in total liabilities and $2.48 million in total stockholders' equity. The Company said certain conditions exist that raise substantial doubt about its ability to continue as a going concern. These conditions include recent operating losses, deficit working capital balances and the inherent risk in extending or refinancing the Company's bank line of credit, which matures on Sept. 5, 2011. As reported by the TCR on May 24, 2011, Maloney + Novotny in Cleveland, Ohio, expressed substantial doubt about DPAC Technologies' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that of the Company's continued operating losses, deficit working capital balances and the inherent risk in extending or refinancing its bank line of credit, which matures on May 31, 2011. A full-text copy of the Form 10-Q is available for free at: http://is.gd/eQlNzn About DPAC Technologies Hudson, Ohio-based DPAC Technologies Corp. (OTC QB: DPAC) -- http://www.quatech.com/-- through its wholly owned subsidiary, Quatech, Inc., designs, manufactures, and sells device connectivity and device networking solutions for a broad market. Quatech sells its products through a global network of distributors, system integrators, value added resellers, and original equipment manufacturers. The Company sells to customers in both domestic and foreign markets. DPAC, together with its wholly owned subsidiary Quatech, Inc., on Aug. 3, 2011, entered into an Asset Purchase Agreement with B&B Electronics Manufacturing Company and its wholly owned subsidiary, Q-Tech Acquisition, LLC. The Asset Purchase Agreement provides for the sale of substantially all of the assets of Quatech for $10.5 million in cash. In connection with the Asset Purchase Agreement, each of Fifth Third Bank, N.A., and the State of Ohio, as lenders to DPAC and Quatech, entered into forbearance agreements with DPAC and Quatech, pursuant to which each consented to DPAC and Quatech entering into the Asset Purchase Agreement and agreed to forbear from exercising certain rights under their respective loan agreement with DPAC and Quatech until the closing has occurred or the Asset Purchase Agreement has terminated. DRAYTON VENTURES: Case Summary & 5 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Drayton Ventures, L.P. 1502 Edgewood Lane Winnetka, IL 60093 Bankruptcy Case No.: 11-33360 Chapter 11 Petition Date: August 15, 2011 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: Eugene R. Wedoff Debtor's Counsel: Gregory K. Stern, Esq. GREGORY K. STERN, P.C. 53 West Jackson Blvd., Suite 1442 Chicago, IL 60604 Tel: (312) 427-1558 Fax: (312) 427-1289 E-mail: gstern1@flash.net Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's five largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ilnb11-33360.pdf The petition was signed by Mona L. Sweeney, Partner/Executrix for Estate of James P. Sweeney. EARTH SEARCH: Delays Filing of Quarterly Report on Form 10-Q ------------------------------------------------------------ Earth Search Sciences, Inc., and its accountants have experienced delay in completing the information for inclusion in the Company's quarterly report on Form 10-Q for the period ended June 30, 2011. The Company expects to file the Quarterly Report within the alotted extension period. About Earth Search Lakeside, Montana-based Earth Search Sciences, Inc., is a Nevada corporation. The Company has five wholly-owned subsidiaries: Skywatch Exploration, Inc., Polyspectrum Imaging, Inc., Geoprobe, Inc., STDC, Inc and General Synfuels International. In addition, there are five majority-owned consolidated subsidiaries: Earth Search Resources, Inc., Eco Probe, Inc., ESSI Probe 1 LC, Petro Probe, Inc. and Terranet, Inc. All subsidiaries except Petro Probe and General Synfuels were inactive during fiscal 2009 and 2010. The Company reported a net loss of $1.85 for the fiscal year ended March 31, 2011, compared with a net loss of $1.25 million during the prior year. The Company's balance sheet at March 31, 2011, showed $319,704 in total assets, $20.87 million in total liabilities and a $20.55 million total stockholders' deficit. MaloneBailey, LLP, in Houston, Texas, noted that the Company has a $20,553,359 working capital deficit as of March 31, 2011, which raises substantial doubt about the Company's ability to continue as a going concern. EAST COAST: Scott Morrison Okayed as Broker for N.C. Properties --------------------------------------------------------------- The Hon. Randy D. Doub of the U.S. Bankruptcy Court for the Eastern District of North Carolina authorized East Coast Development II, LLC to employ Scott James Morrison of Century 21 Sweyer & Associates of 301-C Western Blvd., Jacksonville, North Carolina as broker. Mr. Morrison will list for sale these properties: 67 Court Street, 69 Court Street, 71 Court Street, and 73 Court Street, all of which are located in Jacksonville, Onslow County, North Carolina. The Debtor will pay commissions in the amount of 6% of the gross sales price of each property. The Debtor related that it obtain authorization to employ Keith Saieed of Blue Sky Real Estate Services as the broker to list for sale theseproperties: 67 & 69, 71 & 73 Court Street and 14.4 acres, known as Osprey Point, Jacksonville, Onslow County, North Carolina. The Debtor clarified that Mr. Saieed has a listing agreement to sell the 14.4 acres only, known as Osprey Point, Jacksonville, Onslow County, North Carolina. Mr. Saieed does not have, and never had, a listing agreement for 67 & 69, 71 & 73 Court Street, Osprey Point, Jacksonville, Onslow County, North Carolina. The listing agreement provides that Mr. Saieed will receive commissions in the amount of 6% of the gross sales price of the property known as Osprey Point. To the best of the Debtor's knowledge, Mr. Morrison is a "disinterested person" as that term is defined in section 101(14) of the Bankruptcy Code. About East Coast Development II Wilmington, North Carolina-based East Coast Development II, LLC, dba 100 Block of Market Street, LLC, is in the business of renting real property located in Onslow County, New Hanover County, Guilford County, Wake County, Brunswick County, North Carolina, and Greenville County, Charleston County, and Richland County, South Carolina. East Coast filed for Chapter 11 bankruptcy protection (Bankr. E.D. N.C. Case No. 11-02792) on April 8, 2011. Trawick H. Stubbs, Jr., Esq., at Stubbs & Perdue, P.A., serves as bankruptcy counsel. Laurie R. Brown, CPA, serves as accountant. The Debtor disclosed $24.8 million in assets and $12.2 million in liabilities as of the Chapter 11 filing. The U.S. Trustee has not appointed a creditors committee in the Debtor's case. The U.S. Trustee reserves the right to appoint such a committee should interest developed among the creditors. EAU TECHNOLOGIES: Incurs $1 Million Net Loss in Second Quarter -------------------------------------------------------------- EAU Technologies, Inc., file with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $1.06 million on $71,524 of total sales for the three months ended June 30, 2011, compared with net income of $3.84 million on $139,631 of total sales for the same period during the prior year. The Company also reported a net loss of $1.76 million on $702,166 of total sales for the six months ended June 30, 2011, compared with net income of $3.62 million on $302,033 of total sales for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $2.27 million in total assets, $8.04 million in total liabilities, all current, and a $5.77 million total stockholders' deficit. As reported by the TCR on April 7, 2011, HJ & Associates, LLC, in Salt Lake City, Utah, expressed substantial doubt about EAU Technologies' ability to continue as a going concern following the Company's 2010 results. The independent auditors noted that the Company has a working capital deficit as well as a deficit in stockholders equity. The Company reported net income of $2.4 million on $697,555 of revenues for 2010, compared with a net loss of $2.2 million on $724,510 of revenues for 2009. A full-text copy of the Form 10-Q is available for free at: http://is.gd/c9WJR0 About EAU Technologies Kennesaw, Ga.-base EAU Technologies, Inc., is in the business of developing, manufacturing and marketing equipment that uses water electrolysis to create non-toxic cleaning and disinfecting fluids for food safety applications as well as dairy drinking water. EDINBURG INVESTMENTS: Case Summary & 9 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Edinburg Investments, LLC 182 Johns Manville Drive Edinburg, VA 22824 Bankruptcy Case No.: 11-51167 Chapter 11 Petition Date: August 15, 2011 Court: United States Bankruptcy Court Western District of Virginia (Harrisonburg) Judge: Ross W. Krumm Debtor's Counsel: A. Carter Magee, Jr., Esq. MAGEE GOLDSTEIN LASKY & SAYERS, P.C. P.O. Box 404 Roanoke, VA 24003 Tel: (540) 343-9800 E-mail: cmagee@mglspc.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's nine largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/vawb11-51167.pdf The petition was signed by Kevin E. Moyer, managing member. EIGHT BULLS: Dist. Court Says Rooker-Feldman Doctrine Inapplicable ------------------------------------------------------------------ District Judge Freda L. Wolfson affirmed a bankruptcy court order granting summary judgment in favor of Andrea Dobin, the Chapter 7 Trustee for Eight Bulls, L.P., in an ownership dispute with Timothy J. Sheehan and Barbara E. Sheehan. Timothy Sheehan, as authorized partner of Eight Bulls, signed the Debtor's Chapter 11 petition. The Sheehans, proceeding pro se, took an appeal from an order by Bankruptcy Judge Raymond T. Lyons dated Nov. 8, 2010. The Sheehans argue that Judge Lyons erred by holding that the Rooker- Feldman doctrine was inapplicable to the Eight Bulls bankruptcy proceeding and that the Bankruptcy Court had no jurisdiction to grant summary judgment in favor of the Trustee. In August 2010, following the Chapter 7 Trustee's sale of real estate owned by the Debtor, the Trustee filed an Adversary Proceeding in the United States Bankruptcy Court for the District of New Jersey to determine the extent and validity of the Sheehans' ownership in the Debtor's lots. On Sept. 28, 2010, the Chapter 7 Trustee filed a motion for Summary Judgment arguing that deeds transferring the Property from the Debtor to the Sheehans as individuals, were recorded after the Petition Date and, therefore, were unenforceable against the Trustee. As a result, the Trustee argued that her interest in the Property was that of a bona fide purchaser without notice and that her interest was perfected as of the Petition Date as provided by Section 544 of the Bankruptcy Code. On Nov. 8, 2010, Judge Lyons issued an Order granting summary judgment in favor of the Trustee and declaring that the Sheehans have no legal interest in the Lots. The Sheehans appealed. The Sheehans argue that Judge Lyons erred when he determined that the Rooker-Feldman doctrine was not applicable to the Eight Bulls' bankruptcy proceeding. The Sheehans contend that the Bankruptcy Court lacked subject matter jurisdiction to grant the Trustee's motion for summary judgment since it "rendered ineffectual the decision or judgment of the State Court when it determined that the Sheehans were the owners of [the Lots]. This issue was litigated before the State Court and Judge Ostrer . . . decided that the Sheehans and not Eight Bulls, L.P. were the owners of the property. He initially did so in October of 2009 and reiterated same in June of 2010." The Sheehans also argue that the Trustee's claim is "inextricably intertwined with the state court adjudication," and, as a result, that the Rooker-Feldman doctrine barred the Bankruptcy Court's decision. In response, the Trustee argues that the Sheehans' application of the Rooker Feldman doctrine relies upon outdated law and, that under the proper standard, the Sheehans cannot meet the standard necessary for its application. Judge Wolfson agreed. The Rooker-Feldman doctrine establishes that "federal district courts lack jurisdiction over suits that are essentially appeals from state-court judgments." Great Western Mining & Mineral Co. v. Fox Rothschild, LLP, 615 F.3d 159, 165 (3d Cir. 2010). Until 2005, federal courts had broadly applied this doctrine to bar federal review of claims that had been previously litigated in state court. See, e.g., Desi's Pzza, Inc. v. City of Wilkes- Barre, 321 F.3d 411, 419 (3d Cir. 2003). However, in Exxon Mobil v. Saudi Basic Indus. Corp., 544 U.S. 280, 284 (2005), the Supreme Court narrowed the scope of cases to which the Rooker-Feldman doctrine may be applied and clarified that the doctrine applies only to cases "brought by state-court losers complaining of injuries caused by state-court judgments rendered before the district court proceedings commenced and inviting district court review and rejection of those judgments." In other words, if a case has been previously litigated in state court, a district court may nonetheless maintain jurisdiction as long as the "federal plaintiff 'present[s] some independent claim, albeit one that denies a legal conclusion that a state court has reached in a case to which he was a party.'" Subsequently, and in the wake of Exxon, the Third Circuit articulated a new standard concerning the applicability of Rooker Feldman and the Supreme Court's mandate that courts should construe the doctrine narrowly. Great Western Mining & Mineral Co. v. Fox Rothschild, LLP, 615 F.3d 159, 166 (3d Cir. 2010). In Great Western Mining, the Third Circuit held that Rooker-Feldman applies only if the following four requirements are met: (1) the federal plaintiff lost in state court; (2) the plaintiff complains of injuries caused by a state court judgment; (3) the judgment was rendered before the federal suit was filed; and (4) the plaintiff is inviting the district court to review and reject the state judgments. Judge Wolfson said the Sheehans cannot establish any of the requisite four factors. The District Court case is Timothy J. Sheehan and Barbara E. Sheehan, Appellants, v. Andrea Dobin, Trustee, Appellee, Civil Action No. 10-6288 (D. N.J.). A copy of Judge Wolfson's Aug. 15, 2011 Opinion is available at http://is.gd/Mk6a12from Leagle.com. Eight Bulls L.P. was the owner of Lots 16, 17 and 18, Block 2102, in Princeton Township, New Jersey. Eight Bulls filed a Chapter 11 bankruptcy petition (Bankr. D. N.J. Case No. 09-29356) on July 27, 2009. On Jan. 29, 2010, the Debtor's case was converted to one under Chapter 7 of the Bankruptcy Code. Andrea Dobin was appointed to serve as the Chapter 7 Trustee. ELEPHANT TALK: Incurs $6.7 Million Net Loss in Second Quarter ------------------------------------------------------------- Elephant Talk Communications, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $6.72 million on $7.79 million of revenue for the three months ended June 30, 2011, compared with a net loss of $14.35 million on $9.67 million of revenue for the same period a year ago. The Company also reported a net loss of $11.43 million on $16.29 million of revenue for the six months ended June 30, 2011, compared with a net loss of $26.69 million on $19.61 million of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $51.24 million in total assets, $14.14 million in total liabilities, and $37.09 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/U6VlG5 About Elephant Talk Lutz, Fla.-based Elephant Talk Communications, Inc. (OTC BB: ETAK) -- http://www.elephanttalk.com/-- is an international provider of business software and services to the telecommunications and financial services industry. The Company reported a net loss of $92.48 million on $37.17 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $17.30 million on $43.65 million of revenue during the prior year. As reported by the TCR on April 6, 2011, BDO USA, LLP, noted that the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. As of Dec. 31, 2010, the Company incurred a net loss of $92.5 million, used cash in operations of $14.1 million and had an accumulated deficit of $154.8 million. ENERGY FUTURE: To Offer $115 Million 9.75% Senior Notes Due 2019 ---------------------------------------------------------------- Energy Future Holdings Corp. filed with the U.S. Securities and Exchange Commission a Post-Effective Amendment No. 1 to Form S-3 registration statement relating to the issuance of $115,446,000 9.75% senior secured notes due 2019. Interest on the Notes is payable on April 15 and October 15 of each year. Energy Future may redeem any of the notes beginning on Oct. 15, 2014. EFH Corp. may also redeem any of the notes at any time prior to Oct. 15, 2014, at a price equal to 100% of their principal amount, plus accrued and unpaid interest and a "make- whole" premium. In addition, before Oct. 15, 2012, EFH Corp. may redeem up to 35% of the aggregate principal amount of the notes using the proceeds from certain equity offerings. The notes are listed on the New York Stock Exchange under the symbol "TXU19." A full-text copy of the amended prospectus is available for free at http://is.gd/xapbnZ About Energy Future Energy Future Holdings Corp., formerly known as TXU Corp., is a privately held diversified energy holding company with a portfolio of competitive and regulated energy businesses in Texas. Oncor, an 80%-owned entity within the EFH group, is the largest regulated transmission and distribution utility in Texas. The Company delivers electricity to roughly three million delivery points in and around Dallas-Fort Worth. EFH Corp. was created in October 2007 in a $45 billion leveraged buyout of Texas power company TXU in a deal led by private-equity companies Kohlberg Kravis Roberts & Co. and TPG Inc. * * * In April 2011, Moody's Investors Service affirmed the 'Caa2' Corporate Family Rating, 'Caa3' Probability of Default Rating and SGL-4 Speculative Grade Liquidity Ratings of EFH. Outlook is stable. EFH's Caa2 CFR and Caa3 PDR reflect a financially distressed company with limited financial flexibility; its capital structure appears to be untenable, calling into question the sustainability of the business model; and there is no expectation for any meaningful debt reduction over the next few years, beyond scheduled amortizations. At the end of February 2011, Fitch Ratings it does not expect to take any immediate rating action on EFH's Texas Competitive Electric Holdings Company LLC or their affiliates based on recent default allegations from lender Aurelius. EFH carries a 'CCC' corporate rating, with negative outlook, from Fitch. The Company's balance sheet at June 30, 2011, showed $45.07 billion in total assets, $52.01 billion in total liabilities, and a $6.94 billion total deficit. ENERJEX RESOURCES: Posts $921,600 Net Income in Second Quarter -------------------------------------------------------------- EnerJex Resources, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income of $921,600 on $1.68 million of oil revenues for the three months ended June 30, 2011, compared with net income of $1.04 million on $1.03 million of oil revenues for the same period during the prior year. The Company also reported a net loss of $1.92 million on $3.05 million of oil revenues for the six months ended June 30, 2011, compared with a net loss of $559,460 on $2.18 million of oil revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $32.76 million in total assets, $13.36 million in total liabilities, and $19.40 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/Av56A4 About EnerJex Resources Overland Park, Kansas-based EnerJex Resources, Inc., formerly known as Millennium Plastics Corporation, is an oil and natural gas acquisition, exploration and development company. The Company's oil and natural gas acquisition and development activities are currently focused in Eastern Kansas. This concludes the Troubled Company Reporter's coverage of EnerJex Resources until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. ENRON CORP: Creditors, Lay's Widow Fight Insurer Over Fees ---------------------------------------------------------- Erin Fuchs at Bankruptcy Law360 reports that John Hancock Life Insurance Co. obstructed and prolonged a fight between Enron Corp. creditors and Kenneth Lay's widow over $10 million in annuity payments, the widow's lawyer said Thursday, asking a New York bankruptcy court to reject Hancock's bid for attorneys' fees. About Enron Corp. Based in Houston, Texas, Enron Corporation filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 01-16033) on Dec. 2, 2001, following controversy over accounting procedures that caused its stock price and credit rating to drop sharply. Enron hired lawyers at Togut Segal & Segal LLP; Weil, Gotshal & Manges LLP; Venable; Cadwalader, Wickersham & Taft, LLP for its bankruptcy case. The Official Committee of Unsecured Creditors in the case tapped lawyers at Milbank, Tweed, Hadley & McCloy LLP. The Debtors won confirmation of their Plan in July 2004, and the Plan was declared effective on Nov. 17, 2004. After approval of the Plan, the new board of directors decided to change the name of Enron Corp. to Enron Creditors Recovery Corp. to reflect the current corporate purpose. ECRC's sole mission is to reorganize and liquidate certain of the operations and assets of the "pre- bankruptcy" Enron for the benefit of creditors. ECRC has been involved in the MegaClaims Litigation, an action against 11 major banks and financial institutions that ECRC believes contributed to Enron's collapse; the Commercial Paper Litigation, an action involving the recovery of payments made to commercial paper dealers; and the Equity Transactions Litigation, which ECRC filed against Lehman Brothers Holdings, Inc., UBS AG, Credit Suisse and Bear Stearns to recover payments made to the four banks on transactions involving Enron's stock while the company was insolvent. ENTERPRISE TECHNOLOGY: In Receivership; Owners Evaluate Property ---------------------------------------------------------------- Jondi Gumz at Santa Cruz Sentinel reports that the Enterprise Technology Centre, best known as the former world headquarters for Borland in California, is in receivership. "The economy has taken a toll on commercial real estate," the report quoted said Tim Ballas, managing director at CB Richard Ellis, which is acting as receiver, as saying. "We're evaluating the best strategy for the property," he added. That could mean lease or a sale. Mr. Ballas noted the value of the property changes with occupancy, and it currently has just a handful of occupants. Club One operates a fitness center in one section, according to Santa Cruz Sentinel. The receivership was signed by a judge July 21. In June, the report notes the property was posted on a watch list of nonperforming office loans by Trepp LLC, which tracks the commercial mortgage-backed securities market. The balance owed was $32,497,665. A notice of default was filed July 13, according to the Santa Cruz Record, which listed the original note at $63.5 million, making it the largest loan in the county to go into default during the real estate meltdown, Santa Cruz Sentinel says. Santa Cruz Sentinel relates that the servicer overseeing the loan is LNR Partners, which was the servicer on a loan for the Scotts Valley Hilton and installed new management in January. Mr. Ballas said Triple Net remains the owner of the property, and that the owner and servicer agreed on receivership, Santa Cruz Sentinel adds. Enterprise Technology Centre is a 495,000-square-foot office complex, consisting of seven three-story buildings, was built in 1993 for $120 million by Philippe Kahn for his growing software company. ERP-LINK CORP: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: ERP-Link Corp 510 SW 5th Avenue, Suite 200 Portland, OR 97204 Bankruptcy Case No.: 11-37108 Chapter 11 Petition Date: August 17, 2011 Court: U.S. Bankruptcy Court District of Oregon Judge: Randall L. Dunn Debtor's Counsel: Howard M. Levine, Esq. SUSSMAN SHANK LLP 1000 SW Broadway #1400 Portland, OR 97205 Tel: (503) 243-1637 E-mail: hlevine@sussmanshank.com Scheduled Assets: $199,552 Scheduled Debts: $2,006,811 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/orb11-37108.pdf The petition was signed by John Eric Anderson, president. EVERGREEN SOLAR: Makes Public Information Sent to Noteholders ------------------------------------------------------------- As reported in the TCR on Aug. 19, 2011, Evergreen Solar, Inc., entered into a Restructuring Support Agreement with certain holders of its 13% Convertible Senior Secured Notes due 2015. The Support Agreement was the result of the Company's previously announced negotiations with the Supporting Noteholders regarding the restructuring of the Company's existing debt. As part of the negotiations, the Company had previously provided the Supporting Noteholders with certain confidential information about the Company, which may be deemed material. On Aug. 12, 2011, the non-disclosure agreements that the Company entered into with the Supporting Noteholders expired and the Company is required by the terms of such non-disclosure agreements to disclose to the public via a Current Report on Form 8-K any material non-public information previously provided to the Supporting Noteholders. A copy of the Investor Presentation dated May 2011 prepared for the Supporting Noteholders containing such confidential information is available at http://is.gd/iA1arp A copy of the Investor Presentation dated June 2011 prepared for the Supporting Noteholders containing such confidential information is available at http://is.gd/7YXKBe A copy of a cash sources and uses table prepared for the Supporting Noteholders containing such confidential information is available at http://is.gd/04ev38 A copy of a cash balance forecast prepared for the Supporting Noteholders containing such confidential information is available at http://is.gd/nGT58w In addition, the Company also provided the Supporting Noteholders with information about certain corporate events. These are discussed in detail in the Form 8-K, a copy of which is available at http://is.gd/J5LfZF The information contained in the Form 8-K, including the exhibits attached to the Form 8-K, contains forward-looking statements. "These forward-looking statements are subject to risks and uncertainties which could cause them to differ materially from those currently anticipated in such statements," the Company said in the filing. 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: Wins OK to Cover Key Obligations in Chapter 11 --------------------------------------------------------------- Dow Jones' DBR Small Cap reports that Evergreen Solar Inc. won bankruptcy-court approval of various "first-day" requests that will ensure its continued operations as it works to sell its assets during its newly launched Chapter 11 case. 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. EXTERRAN HOLDINGS: S&P Raises Rating on 4.25% Sr. Notes to 'BB' --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BBB-' issue-level rating (two notches higher than the corporate credit rating) and '1' recovery rating to Exterran Holdings Inc.'s new $1.1 billion five-year senior secured revolving credit facility maturing in 2016. "The '1' recovery rating indicates our expectation for very high (90% to 100%) recovery of principal in the event of payment default. The company's new $1.1 billion revolving credit facility replaces the existing $850 million facility due 2012 and the $800 million term loan due 2013. As a result, we are withdrawing our ratings on these two issues," S&P said. "As a result of the changes to the capital structure and the lower amount of secured debt in the capital structure, we are raising the issue level rating on Exterran's 4.25% convertible senior notes to BB (the same as the corporate credit rating) from 'B+', and revised the recovery rating on this issue to '4' from '6, indicating our expectations of average (30% to 50%) recovery of principal in the event of a payment default. We also revised our recovery rating on the company's 4.75% convertible notes to '3' from 4, indicating our expectation of meaningful (50% to 70%) recovery of principal in the event of a payment default," S&P related. The ratings on Exterran Holdings Inc. reflect the company's participation in the highly competitive, capital-intensive natural gas compression services industry; its leveraged financial profile; and the master limited partnership (MLP) structure of Exterran's growing subsidiary, Exterran Partners L.P. (EXLP). The ratings also incorporate Exterran's exposure to production versus exploration, the company's large share of the domestic contract compression market, and its business and geographic diversity. "As of June 30, 2011, Exterran had approximately $1.76 billion in debt outstanding, adjusted for accrued interest and operating leases. The negative outlook on Exterran is based on our expectation that consolidated debt to EBITDA could stay close to 4.0x through 2011," S&P said. Ratings List Corporate credit rating BB/Negative/-- New Rating $1.1 bil sr secd rev cred facil due 2016 BBB- Recovery rating 1 Upgraded And Recovery Rating Revised To From 4.25% convrtble sr notes BB B+ Recovery rating 4 6 Recovery Rating Revised 4.75% convertible notes BB BB Recovery rating 3 4 FENTURA FINANCIAL: Incurs $245,000 Net Loss in Second Quarter ------------------------------------------------------------- Fentura Financial, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $245,000 on $3.23 million of total interest income for the three ended June 30, 2011, compared with a net loss of $2.78 million on $3.85 million of total interest income for the same period during the prior year. The Company also reported net income of $65,000 on $6.58 million of total interest income for the six months ended June 30, 2011, compared with a net loss of $3.26 million on $7.78 million of total interest income for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $303.33 million in total assets, $286.92 million in total liabilities and $16.41 million in total shareholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/QFmsRV About Fentura Financial Based in Fenton, Michigan, Fentura Financial, Inc., is a registered bank holding company, owns and controls The State Bank, Fenton, Michigan, and West Michigan Community Bank, Hudsonville, Michigan, both state nonmember banks, and two nonbank subsidiaries. Fentura Financial shares are traded over the counter under the FETM trading symbol. As reported in the Troubled Company Reporter on March 22, 2010, Crowe Horwath LLP, in Grand Rapids, Mich., expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted that the Company incurred net losses in 2009 and 2008, primarily from higher provisions for loan losses, and non-compliance with the higher capital requirements of the Consent Orders. Fentura Financial, Inc., entered into a Written Agreement with the Federal Reserve Bank of Chicago on Nov. 4, 2010. Among other things, the Written Agreement requires that the Company obtain the approval of the FRB prior to paying a dividend; requires that the Company obtain the approval of the FRB prior to making any distribution of interest, principal, or other sums on subordinated debentures or trust preferred securities; prohibits the Company from purchasing or redeeming any shares of its stock without the prior written approval of the FRB; requires the submission of a written capital plan by Jan. 3, 2011, and; requires the Company to submit cash flow projections for the Company to the FRB on a quarterly basis. The Company reported a net loss of $5.38 million on $13.87 million of interest income for the year ended Dec. 31, 2010, compared with a net loss of $16.98 million on $16.24 million of interest income during the prior year. FIESTA RESTAURANT: S&P Assigns 'B' Corporate Credit Rating ---------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to Syracuse, N.Y.-based Fiesta Restaurant Group Inc. The outlook is stable. "At the same time, we assigned a 'B' rating to the company's $200 million second-lien secured notes. We rate the notes the same as the corporate credit rating, and assigned a '4' recovery rating to the debt, indicating our expectations of average (30%-50%) recovery of principal in the event of default," S&P said. The company used proceeds from the note issuance and funds from a new term loan issued at Carrols LLC, a subsidiary of Carrols that operates Burger King restaurants, to pay Carrols' previous debt obligations. These transactions will allow Carrols to spin off Fiesta later this year. Fiesta, at that point, will independently operate Carrols' current Hispanic brands, Pollo Tropical and Taco Cabana. "The speculative-grade rating on Fiesta reflects our expectation that the company's credit ratios will remain characteristic of a 'B' rating," said Standard & Poor's credit analyst Charles Pinson- Rose, "given its participation in the very competitive restaurant industry and our view that the company's business risk profile is weak." "Although we are forecasting better profits as a result of higher same-store sales and new unit growth, we do not expect to change our highly leveraged assessment of Fiesta's financial risk profile." FIRST SECURITY: Incurs $5.4 Million Net Loss in Second Quarter -------------------------------------------------------------- First Security Group, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $5.39 million on $11.01 million of total interest income for the three months ended June 30, 2011, compared a net loss of $2.12 million on $14.29 million of total interest income for the same period during the prior year. The Company also reported a net loss of $8.05 million on $22.51 million of total interest income for the six months ended June 30, 2011, compared with a net loss of $3.24 million on $29.33 million of total interest income for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $1.10 billion in total assets, $1.02 billion in total liabilities, and $84.78 million in total stockholders' equity. Joseph Decosimo and Company, PLLC, in Chattanooga, Tennessee, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred losses from operations for the past two years. The Company is also operating under formal supervisory agreements with the Federal Reserve Bank of Atlanta and the Office of the Comptroller of the Currency and is not in compliance with all provisions of the Agreements. Failure to achieve all of the Agreements' requirements may lead to additional regulatory actions. According to the Company, its ability to continue as a going concern is contingent upon its ability to devise and successfully execute a management plan to develop profitable operations, satisfy the requirements of the regulatory actions detailed below, and lower the level of problem assets to an acceptable level. A full-text copy of the Form 10-Q is available for free at: http://is.gd/vHeusE About First Security Group First Security Group, Inc., is a bank holding company headquartered in Chattanooga, Tennessee, with $1.2 billion in assets as of Sept. 30, 2010. Founded in 1999, First Security's community bank subsidiary, FSGBank, N.A., has 37 full- service banking offices, including the headquarters, along the interstate corridors of eastern and middle Tennessee and northern Georgia and 325 full-time equivalent employees. In Dalton, Georgia, FSGBank operates under the name of Dalton Whitfield Bank; along the Interstate 40 corridor in Tennessee, FSGBank operates under the name of Jackson Bank & Trust. On Sept. 7, 2010, the Company entered into a Written Agreement with the Federal Reserve Bank of Atlanta, the Company's primary regulator, which prohibits the Company from declaring or paying dividends without prior written consent of the Federal Reserve. The Company is also prohibited from taking dividends, or any other form of payment representing a reduction of capital, from the Bank without prior written consent. The Company is also required, within 60 days of the Agreement, to submit to the Federal Reserve a written plan designed to maintain sufficient capital at the Company and the Bank. On April 28, 2010, FSGBank, the Company's wholly-owned subsidiary, consented and agreed to the issuance of a Consent Order by the Office of the Comptroller of the Currency (OCC). Pursuant to that Consent Order, within 120 days of the effective date of the Order, the Bank is required to achieve and thereafter maintain total capital at least equal to 13% of risk-weighted assets and Tier 1 capital at least equal to 9% of adjusted total assets. As of Sept. 30, 2010, the first financial reporting period subsequent to the 120 day requirement, the Bank's total capital to risk-weighted assets was 12.93% and the Tier 1 capital to adjusted total assets was 7.43%. The Bank has notified the OCC of the non-compliance. The Company reported a net loss of $44.34 million on $54.91 million of total interest income for the year ended Dec. 31, 2010, compared with a net loss of $33.45 million on $64.00 million of total interest income during the prior year. FIRSTPLUS FIN'L: AMC Tapped as Appraiser for Aircraft ----------------------------------------------------- Matthew D. Orwig, the Chapter 11 Trustee for the estate of FirstPlus Financial Group, Inc., seeks to employ Aviation Management Consulting, Inc. as (i) an appraiser to determine the current market value of a certain airplane and (ii) as an expert witness, if the need for valuation testimony arises. On Jun. 22, 3011, the Trustee filed an original complaint to avoid fraudulent transfer, seeking to recover title to a Mitsubishi MU- 2B-60, s/n 1562SA, N1164 aircraft currently titled in Velia Charters, Inc., and, upon information and belief, currently in the custody of the U.S. Marshals Service, pursuant to, inter alia, Sections 544 and 548 of the Bankruptcy Code and Sections 24.005 and 24.008 of the Texas Business & Commerce Code, and under common law theories of unjust enrichment and constructive trust. AMC is to be paid a flat fee of $3,000 for the appraisal as well as a total daily inspection fee of $3,000 -- $1,500 per day of the inspection, which is estimated to take two days. AMC will also be reimbursed for its actual and necessary expenses. If required to provide expert appraisal or valuation testimony, AMC's designated expert will charge the Estate $600 per hour for the testimony, including preparations. Compensation and reimbursement to AMC will be paid out of property of the Estate, subject to Court approval. Based upon the affidavit of Kenneth M. Dufour, president and chief executive officer of AMC, the Trustee believes that the firm is a disinterested person as the term is defined in Section 101(14) of the Bankruptcy Code and that AMC has no interests adverse to those of the Estate. About FirstPlus Financial Based in Beaumont, Texas, FirstPlus Financial Group, Inc. -- http://www.firstplusgroup.com/-- (Pink Sheets: FPFX) is a diversified company that provides commercial loan, consumer lending, residential and commercial restoration, facility (janitorial and maintenance) services, insurance adjusting services, construction management services and a facilities and restoration franchise business. The Company has three direct subsidiaries, Rutgers Investment Group, Inc., FirstPlus Development Company and FirstPlus Enterprises, Inc. In turn, FirstPlus Enterprises, Inc., has three of its own direct subsidiaries, FirstPlus Restoration Co., LLC, FirstPlus Facility Services Co., LLC and The Premier Group, LLC. FirstPlus Restoration and FirstPlus Facility jointly own FirstPlus Restoration & Facility Services Company. Additionally, FirstPlus Development has one direct subsidiary FirstPlus Acquisitions-1, Inc. A subsidiary of FirstPlus Financial Group -- FirstPlus Financial Inc. -- filed for Chapter 11 bankruptcy in March 1999 before the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, amid turmoil in the asset-backed securitization markets and the lack of a reliable, committed secondary take-out source for high LTV loans. A modified third amended plan of reorganization was confirmed in that case in April 2000. The Company filed for Chapter 11 protection on June 23, 2009 (Bankr. N.D. Tex. Case No. 09-33918). Aaron Michael Kaufman, Esq., and George H. Tarpley, Esq., at Cox Smith Matthews Incorporated, serves as counsel. The Debtor has total assets of $15,503,125 and total debts of $4,539,063 as of June 30, 2008. FirstPLUS Financial Group disclosed $1,264,637 in assets and $10,347,448 in liabilities as of the Chapter 11 filing. Matthew D. Orwig is appointed as the Chapter 11 trustee in the Debtors cases. The trustee is represented by Peter A. Franklin, Esq., and Erin K. Lovall, Esq., at Franklin Skierski Lovall Hayward LLP. * * * The Trustee notified the Court that Peter Franklin and the law firm of Franklin Skierski Lovall Hayward, LLP, which firm presently represents the Trustee as local counsel, will be substituted as lead counsel for the Trustee in the stead of Jo Christine Reed and SNR Denton US, LLP, due to the maternity leave of Ms. Reed. The firm may be reached at: Peter Franklin, Esq. FRANKLIN SKIERSKI LOVALL HAYWARD LLP 10501 N. Central Expy., Suite 106 Dallas Texas 75231 Tel: 972-755-7100 Fax: 972-755-7110 E-mail: pfranklin@fslhlaw.com GALP CNA: Court Confirms Plans of Reorganization ------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of Texas confirmed Wentwood Roundhill I, L.P., and GALP CNA Limited Partnership's separate Fourth Modified Plans of Reorganization dated as of July 22, 2011. Wentwood Roundhill I's modified plan stated that on Page 8 -- "[the] Debtor is to pay down $1,000,000 of the principal on Centrum Financial Services, Inc.'s secured first lien claim on the Effective Date, said payment and any and all other principal reduction payments will be made to First-Citizens Bank & Trust Company, pursuant to instructions provided by Centrum and First-Citizens Bank & Trust Company until First- Citizens Bank & Trust is paid in full." Under GALP CNA's Plan, the Debtor intends to fund the Plan of Reorganization out of: (i) new equity (in the form of mandatory and non-mandatory cash calls on various limited partners); and (ii) collection of related party receivables. GALP CNA's Plan provides that: -- The claim of Centrum secured by a lien on the Debtor's is allowed, on a final basis, in the agreed amount of $3,720,030. On the Effective Date, the reorganized Debtor will pay $572,592 to Centrum, reducing the arrearage of back interest (at the non-default rate) and any ad valorem property taxes that were paid by Centrum, leaving an unpaid balance of $3,148.438. -- Each creditor holding a Class 6 general unsecured claim will be paid 20% of its allowed claim, in cash, on the Effective Date. -- Each equity interest holder in Class 9 will be allowed to retain such interest held. The Court further ordered that (i) at least $2,168,991 of the funds currently held of Wentwood Roundhill I's counsel's IOLTA account will be reserved and used for the Effective Date payments required; and (ii) at least $906,743 of the funds currently held of GALP CNA Limited's counsel's IOLTA account will be reserves and used for the Effective Date Payments required. A full-text copy of the modified plans are available for free at: http://bankrupt.com/misc/GALPCNA_plan_galpcnalimited.pdf http://bankrupt.com/misc/GALPCNA_plan_wentwoodroundhilli.pdf About GALP CNA Houston, Texas-based GALP CNA Limited Partnership filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Case No. 10- 38975) on Oct. 4, 2010. The Debtor estimated its assets and debts at $1 million to $10 million at the Petition Date. GALP CNA's case is jointly administered with that of Wentwood Woodside I, L.P., Wentwood Roundhill I, L.P., Wentwood Rollingbrook, L.P., and GALP Cypress Limited Partnership. GALP CNA is the lead case. Houston, Texas-based GALP CNA Limited Partnership filed for Chapter 11 bankruptcy protection on Oct. 4, 2010 (Bankr. S.D. Tex. Case No. 10-38975). The Debtor estimated its assets and debts at $1 million to $10 million at the Petition Date. Houston, Texas-based Wentwood Woodside filed for Chapter 11 bankruptcy protection on Oct. 4, 2010 (Bankr. S.D. Tex. Case No. 10-38981). It estimated its assets at $10 million to $50 million and debts at $1 million to $10 million at the Petition Date. Three affiliates -- Wentwood Roundhill, Wentwood Rollingbrook, and GALP Cypress (Case No. 10-38991) -- also filed for Chapter 11 bankruptcy protection on Oct. 4, 2010. Matthew Hoffman, Esq., at the Law Offices of Matthew Hoffman, P.C., assists the Debtors in their restructuring efforts. GALP CYPRESS: Cypress Has Access to Keybank's Cash Until Aug. 31 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Texas extended GALP Cypress Limited Partnership's access to KeyBank, N.A.'s cash collateral until Aug. 31, 2011. KeyBank has agreed to the Debtor's extension of the interim period to make required monthly adequate assurance payments to KeyBank on its secured indebtedness in the amount of $54,375 for August 2011. The Debtor's access to the cash collateral will be subject to the same terms and conditions governing the use of cash collateral set forth agreed interim order, except that the adequate assurance payment is to be made to KeyBank, rather than to Centrum/Equity Funding. About GALP CNA Houston, Texas-based GALP CNA Limited Partnership filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Case No. 10- 38975) on Oct. 4, 2010. The Debtor estimated its assets and debts at $1 million to $10 million at the Petition Date. GALP CNA's case is jointly administered with that of Wentwood Woodside I, L.P., Wentwood Roundhill I, L.P., Wentwood Rollingbrook, L.P., and GALP Cypress Limited Partnership. GALP CNA is the lead case. Houston, Texas-based GALP CNA Limited Partnership filed for Chapter 11 bankruptcy protection on Oct. 4, 2010 (Bankr. S.D. Tex. Case No. 10-38975). The Debtor estimated its assets and debts at $1 million to $10 million at the Petition Date. Houston, Texas-based Wentwood Woodside filed for Chapter 11 bankruptcy protection on Oct. 4, 2010 (Bankr. S.D. Tex. Case No. 10-38981). It estimated its assets at $10 million to $50 million and debts at $1 million to $10 million at the Petition Date. Three affiliates -- Wentwood Roundhill, Wentwood Rollingbrook, and GALP Cypress (Case No. 10-38991) -- also filed for Chapter 11 bankruptcy protection on Oct. 4, 2010. Matthew Hoffman, Esq., at the Law Offices of Matthew Hoffman, P.C., assists the Debtors in their restructuring efforts. GAMESTOP CORP: Q2 Profit Slumps 23% on Same-Store Sales Decline --------------------------------------------------------------- Dow Jones' DBR Small Cap reports that GameStop Corp.'s fiscal second-quarter earnings slumped 23% as the videogame retailer suffered a stiff decline in same-store sales and lighter demand for its new products. About GameStop Corp. GameStop Corp., headquartered in Grapevine, Texas, is the world's largest specialty retailer of video game products and PC entertainment software. The company operates over 6,600 stores in 17 countries with revenues of about $9.3 billion. * * * The Company has a 'Ba1' corporate family rating as well as a 'Ba1' rating on $250 million senior unsecured notes, from Moody's Investors Service. GARLOCK SEALING: Hires Rust Consulting as Claims Handling Agent --------------------------------------------------------------- The Honorable George R. Hodges has approved the application of Garlock Sealing Technologies LLC, et al. to employ Rust Consulting, Inc. as their official claims handling agent. With respect to claims other than claims seeking compensation for alleged asbestos-related personal injury or wrongful death, Rust Consulting will provide services, including: * Maintain the claims register for all proofs of claim filed in these cases; * Receive and docket all proofs of claim in these cases; * Date-stamp all proofs of claim on the date of receipt. Proofs of claim received by the Court will be date-stamped on the date of receipt by the Clerk and forwarded to the Claims Handling Agent for acknowledgment and docketing; * Perform proper data quality assurance to verify that each portable document format image is complete and information listed on each claim is accurately reflected in the Claims register; * Record all transfers of claims pursuant to Bankruptcy Rule 3001(e) and provide notice of the transfers; and * Comply with applicable federal and state laws, rules, orders and regulations, and the further conditions and requirements as the Clerk of Court may prescribe. About Garlock Sealing Headquartered in Palmyra, New York, Garlock Sealing Technologies LLC is a unit of EnPro Industries, Inc. (NYSE: NPO). For more than a century, Garlock has been helping customers efficiently seal the toughest process fluids in the most demanding applications. On June 5, 2010, Garlock filed a voluntary Chapter 11 petition (Bankr. W.D. N.C. Case No. 10-31607) in Charlotte, North Carolina, to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. The Debtor estimated $500 million to $1 billion in assets and up to $500 million in debts as of the Petition Date. Affiliates The Anchor Packing Company and Garrison Litigation Management Group, Ltd., also filed for bankruptcy. The filing covers only Garlock operations in Palmyra, New York and Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex, Pikotek, Technetics, Garlock Europe and Garlock operations in Canada, Mexico or Australia are not affected by the filing, nor is EnPro Industries or any other EnPro operating subsidiary. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtor in its Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for asbestos matters. The Official Committee of Asbestos Personal Injury Claimants in the Chapter 11 cases is represented by Travis W. Moon, Esq., at Hamilton Moon Stephens Steele & Martin, PLLC, in Charlotte, NC, Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, in New York, and Trevor W. Swett III, Esq., Leslie M. Kelleher, Esq., and Jeanna Rickards Koski, Esq., in Washington, D.C. 20005. Joseph W. Grier, III, the Court-appointed legal representative for future asbestos claimants, has retained A. Cotten Wright, Esq., at Grier Furr & Crisp, PA, and Richard H. Wyron, Esq., and Jonathan P. Guy, Esq., at Orrick, Herrington & Sutcliffe LLP, as his co- counsel. About 124,000 asbestos claims are pending against Garlock in stateand federal courts across the country. The Company says majority of pending asbestos actions against it is stale and dormant -- almost 110,000 or 88% were filed more than four years ago and more than 44,000 or 35% were filed more than 10 years ago. GATEWAY HOTEL: Court to Tackle 'Market Testing' Plan on Wednesday ----------------------------------------------------------------- 2010-1 SFG Venture LLC, a secured lender of Gateway Hotel LLC, asks the bankruptcy court to modify the Debtor's exclusive solicitation period to permit the filing of a competing plan as a means of market testing the Debtor's Plan. The Lender also asks the Court to allow the SFG Competing Plan to be solicited and proceed to confirmation concurrently with the Debtor's Plan. 2010-1 SFG Ventures states that by not providing its general unsecured creditors with the full present value of their claims while providing that the Debtor's existing equity holders will retain their equity for no consideration, the Debtor's Plan violates the absolute priority rule provided in Section 1129(b)(2)(B) of the Bankruptcy Code. 2010-1 SFG Ventures tells the Court that the Debtor's Plan presents a unique circumstance -- "a new value plan with no new value." While all new value plans must be market tested, this is especially true where the new equity interests are being purchased for nothing, according to SFG, A competing plan, proposed by SFG, is the easiest and least expensive means to market test the Debtor's Plan. The motion is scheduled for hearing on Aug. 24 at 11:00 a.m. 2010-1 SFG Venture LLC is represented by: David D. Cleary, Esq. Kami M. Hoskins, Esq. GREENBERG TRAURIG LLP 2375 East Camelback Road, Suite 700 Phoenix, Arizona 85016 Phone: (602) 445-8000 Fax: (602) 445-8100 E-mail: clearyd@gtlaw.com The Debtor's Plan The Debtor has filed a plan that proposes to pay all claims in full, either on the effective date or over time. In connection with successfully accomplishing the foregoing, the Debtor proposes to restructure the terms of its subsidiaries owed to lender, the largest single creditor of the estate, so that the Debtor is afforded the necessary breathing room to pay lender's claim in full, with interest, over time. The Debtor will make plan distributions from revenues generated by the Debtor's business operations or such other sources as the Debtor deems appropriate in its reasonable business judgment. Judge James M. Marlar of the U.S. Bankruptcy Court for the District of Arizona approved the disclosure statement explaining the Plan on July 25, 2011. The hearing to consider the confirmation of the Plan will be held on Sept. 22, 2011, at 9:00 a.m. Plan confirmation objections are due Sept. 15. About Gateway Hotel Phoenix, Arizona-based Gateway Hotel LLC -- aka Hilton Garden Inn and Hilton Garden Inn Phoenix Airport North -- is primarily engaged in the hotel and restaurant business. It filed for Chapter 11 bankruptcy protection on March 29, 2011 (Bankr. D. Ariz. Case No. 11-08302). Kyle S. Hirsch, Esq., at Bryan Cave LLP, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliate Windsor Commercial Construction, LLC, filed a separate Chapter 11 petition on Oct. 13, 2009 (Bankr. D. Ariz. Case No. 09-25724). GERDAU AMERISTEEL: Moody's Withdraws 'Ba1' Corp. Family Rating -------------------------------------------------------------- Moody's Investors Service has withdrawn Gerdau Ameristeel Corporation's Ba1 Corporate Family and Probability of Default ratings. Moody's has withdrawn the ratings for its own business reasons. These ratings were withdrawn: Corporate Family Rating, Ba1; Probability of Default, Ba1 The Ba1 rated 5.3% Industrial Revenue Bonds, Series 2007 due May 2037, issued by Jacksonville Economic Development Commission, are now guaranteed by Gerdau S.A., - global scale corporate family rating Ba1. The ratings are under review for possible upgrade. The last rating action was implemented on March 22, 2011, when Moody's placed the Ba1 global scale corporate family ratings of Gerdau S.A. and Gerdau Ameristeel Corporation under review for possible upgrade, following the announcement of a primary equity issuance by Gerdau of about BRL 3.8 billion to BRL 4.2 billion. The principal methodology used in rating Gerdau and Ameristeel was the Global Steel Industry Methodology published in January 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies. GOLD HILL: Seeks to Employ Hartsell & Williams as Special Counsel ----------------------------------------------------------------- Gold Hill Enterprises, LLC seeks to employ K. Todd Phillips and the firm Hartsell & Williams, P.A., as its special counsel. The firm will be paid its regularly hourly rates, which range from $150 to $295 for attorneys, and $125 to $150 for paralegals. The firm disclosed associations or former representations with certain entities, including CESI, LLC; First Charter Bank, which merged into Fifth Third Bank, N.A.; and The law firm of Mack and Mack in matters unrelated to the bankruptcy case, and believes that these connections do not create any conflict of interest or represent any interest adverse to the Debtor or its estate. Based on the declaration of K. Todd Phillips, the Debtor believes that the Firm is a disinterested person as the term is defined in Section 101(14) of the Bankruptcy Code. About Gold Hill Enterprises Fort Mill, South Carolina-based Gold Hill Enterprises, LLC, dba Jennings Enterprises, filed for Chapter 11 bankruptcy protection (Bankr. D. S.C. Case No. 11-02458) on April 14, 2011. According to its schedules, the Debtor disclosed $11,938,596 in total assets and $7,351,872 in total debts. Barton Law Firm, P.A., represents the Debtor in its restructuring effort. B. Bayles Mack and the firm of Mack & Mack serves as special counsel. Keith Corporation serves as marketing and development agent. Robert Palmer & Associates serves as tax accountant to assist in the preparation of all tax filings and returns required post petition, and other accounting services that may be necessary during the pendency of the Chapter 11 case. W. Clarkson Mcdow, Jr., the U.S. Trustee for Region 4, was unable to appoint an official committee of unsecured creditors in the Debtor's case. GREAT LAKES AVIATION: Reports $606,500 2nd Quarter Net Income ------------------------------------------------------------- Great Lakes Aviation, Ltd., filed its quarterly report on Form 10-Q, reporting net income of $606,552 on $31.2 million of revenues for the three months ended June 30, 2011, compared with net income of $1.4 million on $31.0 million of revenues for the same period last year. The Company reported net income of $29,146 on $60.9 million of revenues for the six months ended June 30, 2011, compared with net income of $1.2 million on $59.8 million of revenues for the same period of 2010. At June 30, 2011, the Company has $34.3 million of long-term debt payments or debt maturity debt payments due in the next twelve months. At June 30, 2011, the largest portion of the Company's long-term debt was held by the Company's principal creditor and largest single shareholder, Raytheon Aircraft Credit Corporation. The notes, which were used to finance the purchase of aircraft, are secured by 25 Beechcraft 1900D aircraft and originally matured on June 30, 2011. Under an agreement with Raytheon dated June 10, 2011, the maturity date of these aircraft notes was extended to Aug. 31, 2011, at which time a $31.8 million balloon payment for all 25 aircraft notes is due. The Company's senior note with Raytheon, in the amount of $6.9 million at June 30, 2011, is cross defaulted to the aircraft notes. In the event that the Company is unable to obtain new financing, Raytheon may exercise alternatives available to it, including the foreclosure and taking of the 25 mortgaged aircraft and causing the $6.9 million senior note to become due and payable. "The inability to successfully implement a refinancing plan or otherwise address the Company's liquidity issue within the timeframe permitted will have a material adverse effect on our business, results of operations, and financial position," the Company said in the filing. "This raises substantial doubt as to our ability to continue operating as a going concern." The Company's balance sheet at June 30, 2011, showed $79.9 million in total assets, $51.0 million in total liabilities, and stockholders' equity of $28.9 million. As reported in the TCR on April 12, 2011, KPMG LLP, in Denver, expressed substantial doubt about Great Lakes Aviation's ability to continue as a going concern, following the Company's results for 2010. The independent auditors noted that the Company has $38.4 million of debt payments and maturities due in 2011, including a one-time payment in the amount of $32.7 million due on June 30, 2011. The independent auditors said that the Company's cash flows from operations are not sufficient to fund these debt obligations. A copy of the Form 10-Q is available at http://is.gd/zXYsRQ Cheyenne, Wyo.-based Great Lakes Aviation, Ltd., is a regional airline operating as an independent carrier and as a code share partner with United Air Lines, Inc., and Frontier Airlines, Inc. As of Aug. 11, 2011, the Company served 42 airports in 11 states with a fleet of six Embraer EMB-120 Brasilia and 32 Raytheon/Beechcraft 1900D regional airliners. GRUBB & ELLIS: Incurs $14.7 Million Second Quarter Net Loss ----------------------------------------------------------- Grubb & Ellis Company filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $14.71 million on $137.95 million of total revenue for the three months ended June 30, 2011, compared with a net loss of $19.19 million on $127.06 million of total revenue for the same period during the prior year. The Company also reported a net loss of $33.40 million on $250.21 million of total revenue for the six months ended June 30, 2011, compared with a net loss of $43.24 million on $243.36 million of total revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $263.50 million in total assets, $264.48 million in total liabilities, $95.87 million in preferred stock, and a $96.85 million total deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/JyVpnF About Grubb & Ellis Company Grubb & Ellis Company -- http://www.grubb-ellis.com/-- is one of the largest and most respected commercial real estate services and investment companies in the world. Our 5,200 professionals in more than 100 company-owned and affiliate offices draw from a unique platform of real estate services, practice groups and investment products to deliver comprehensive, integrated solutions to real estate owners, tenants and investors. The firm's transaction, management, consulting and investment services are supported by highly regarded proprietary market research and extensive local expertise. Through its investment management business, the company is a leading sponsor of real estate investment programs. The Company reported a net loss of $69.7 million on $575.5 million of revenues for 2010, compared with a net loss of $80.5 million on $527.9 million of revenues for 2009. HILLSIDE VALLEY: Withdraws Emergency Motion for $6.5-Mil Financing ------------------------------------------------------------------ Hillside Valley, L.P., has withdrawn its emergency motion for entry of an order authorizing the Debtor to obtain post-petition financing, filed Aug. 5, 2011. No other details were provided. In the August 5 motion [Docket No. 33] the Debtor had sought permission to obtain post-petition financing pursuant to Section 364 of the Bankruptcy Code from proposed lender Hudson Realty Capital LLC in the amount of up to $6,500,000. Some of the significant elements of the DIP funding are: Borrower/Debtor : Hillside Valley, L.P. Loan Amount : Up to $6,500,000. Collateral : The Financing will be secured by, among other things, a first priority priming lien and super-priority claim on substantially all of the Debtors' assets. Base Interest Rate : 13.5% (10% current pay and 3.5% accrual). Closing Fee : 2% of the total Loan Amount, which fee will ' be non-refundable, earned and payable upon the Closing. Term : Earlier of 12 months or the occurrence of a Termination Event. Watchung, New Jersey-based Hillside Valley, L.P., has developed a 200 unit, 200,000 sq. ft., 10 building luxury apartment complex located at 301-359 River Rd, Allentown, Pennsylvania. The complex is approximately 80% completed. Approximately 13 apartments have been rented. One building is completed and four more are substantially completed with the remaining five buildings in various stages of completion. The Company 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. Douglas J. Smillie, Esq., at Fitzpatrick Lentz & Bubba, P.C., represents the Debtor as counsel. The Debtor estimated assets and debts at $10 million to $50 million. A state-court appointed receiver has been maintained in place to collect rents, and otherwise fulfill the obligations of the receiver pursuant to the state court order appointing said receiver, as modified by Stipulation and Order entered in the Bankruptcy Court. HOLLIFIELD RANCHES: Plan Outline Hearing Continued Until Aug. 31 ---------------------------------------------------------------- The Hon. Jim D. Pappas of the U.S. Bankruptcy Court for the District of Idaho approved a stipulation continuing until Aug. 31, 2011, at 1:30 p.m., the hearing to consider the Disclosure Statement explaining Hollifield Ranches, Inc.'s Plan of Reorganization. Objections, if any, are due Aug. 19. The hearing was previously set for Aug. 10. The Debtor told the Court that it needed more time to negotiate with Keybank regarding discovery, disclosure statement, and confirmation matters. The stipulation was entered among the Debtor, creditors KeyBank National Association, and Metropolitan Life Insurance Company. The Debtor will begin soliciting votes on the Plan following approval of the adequacy of the information in the Disclosure Statement. According to the Disclosure Statement, the Plan provides that priority claims will be paid in full; secured debts will be paid to the extent of their values; unsecured debts will be paid (in a fair and equitable manner) to the extent the unsecured property of the estate reaches to those creditors or that the cash flow allows, and other properties will be disbursed and addressed. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/HOLLIFIELDRANCHES_DS.pdf About Hollifield Ranches, Inc. Hansen, Idaho-based Hollifield Ranches, Inc., filed for Chapter 11 bankruptcy protection on September 9, 2010 (Bankr. D. Idaho Case No. 10-41613). Brent T. Robinson, Esq., in Rupert, Idaho, represents the Debtor. The Debtor estimated assets and debts at $10 million to $50 million as of the Chapter 11 filing. Robert D. Miller, Jr. ,the United States Trustee for Region 18, has appointed three creditors to serve as members of the Unsecured Creditors' Committee in the Chapter 11 case of Hollifield Ranches, Inc. J. Justin May, Esq., at May, Browning & May represents the Official Committee of Unsecured Creditors. HORIZON LINES: Subscription Deadline Expired Aug. 19 ---------------------------------------------------- Horizon Lines, Inc., entered into a seventh amendment with certain holders of a majority of its unsecured 4.25% convertible senior notes due 2012, to the previously announced Restructuring Support Agreement, dated June 1, 2011, as amended. The Amendment was entered into to extend, from Aug. 12, 2011, to Aug. 19, 2011, (i) the deadline by which the Company is to receive subscription commitments from the Exchanging Holders and (ii) the Exchanging Holders' and the Company's continued support for the recapitalization and to allow the parties to discuss certain modifications to the terms of the recapitalization. About Horizon Lines Charlotte, N.C.-based Horizon Lines, Inc. (NYSE: HRZ) is the nation's leading domestic ocean shipping and integrated logistics company. The Company owns or leases a fleet of 20 U.S.-flag containerships and operates five port terminals linking the continental United States with Alaska, Hawaii, Guam, Micronesia and Puerto Rico. The Company provides express trans-Pacific service between the U.S. West Coast and the ports of Ningbo and Shanghai in China, manages a domestic and overseas service partner network and provides integrated, reliable and cost competitive logistics solutions. The Company's balance sheet at June 26, 2011, showed $794.96 million in total assets, $793.45 million in total liabilities, and and a stockholders' deficit of $1.51 million. The Company expects to experience a covenant breach under the Senior Credit Facility in connection with the amended financial covenants upon the close of the third fiscal quarter of 2011. As reported in the TCR on March 30, 2011, Ernst & Young LLP, in Charlotte, North Carolina, expressed substantial doubt Horizon Lines' ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 26, 2010. The independent auditors noted that there is uncertainty that Horizon Lines will remain in compliance with certain debt covenants throughout 2011 and will be able to cure the acceleration clause contained in the convertible notes. IMH FINANCIAL: Incurs $6.8 Million Net Loss in Second Quarter ------------------------------------------------------------- IMH Financial Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $6.87 million on $881,000 of total revenue for the three months ended June 30, 2011, compared with a net loss of $42.19 million on $935,000 of total revenue for the same period a year ago. The Company also reported a net loss of $12.28 million on $1.90 million of total revenue for the six months ended June 30, 2011, compared with a net loss of $45.04 million on $1.94 million of total revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $264.97 million in total assets, $76.15 million in total liabilities and $188.82 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/WGGK26 About IMH Financial Scottsdale, Ariz.-based IMH Financial Corporation was formed from the conversion of IMH Secured Loan Fund, LLC, or the Fund, a Delaware limited liability company, on June 18, 2010. The conversion was effected following a consent solicitation process pursuant to which approval was obtained from a majority of the members of the Fund to effect the Conversion Transactions and involved (i) the conversion of the Fund from a Delaware limited liability company into a Delaware corporation named IMH Financial Corporation, and (ii) the acquisition by the Company of all of the outstanding shares of the manager of the Fund Investors Mortgage Holdings Inc., or the Manager, as well as all of the outstanding membership interests of a related entity, IMH Holdings LLC, or Holdings on June 18, 2010. The Company is a commercial real estate lender based in the southwest United States with over 12 years of experience in many facets of the real estate investment process, including origination, underwriting, documentation, servicing, construction, enforcement, development, marketing, and disposition. The Company focuses on a niche segment of the real estate market that it believes is underserved by community, regional and national banks: high yield, short-term, senior secured real estate mortgage loans. The intense level of underwriting analysis required in this segment necessitates personnel and expertise that many community banks lack, yet the requisite localized market knowledge of the underwriting process and the size of the loans the Company seeks often precludes the regional and community banks from efficiently entering this market. "Given the current state of the real estate and credit markets, we believe the realization of full recovery of the cost basis in our assets is unlikely to occur in a reasonable time frame and may not occur at all, and we may be required to liquidate portions of our assets for liquidity purposes at a price significantly below the initial cost basis or potentially below current carrying values. If we are not able to liquidate a sufficient portion of our assets or access credit under the credit facility currently under negotiation, there may be substantial doubt about our ability to continue as a going concern. Nevertheless, we believe that our cash and cash equivalents, coupled with liquidity derived from the credit facility currently under negotiation and the disposition of certain of the loans and real estate held for sale, will allow us to fund current operations over the next 12 months," the Company said in its Form 10-Q for the quarter ended Sept. 30, 2010. The Company reported a net loss of $117.04 million on $3.75 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $74.47 million on $22.52 million of total revenue during the prior year. As reported by the TCR on April 20, 2011, BDO USA, LLP, in Phoenix, Arizona, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses and is not currently generating sufficient cash flows to sustain operations INDYMAC BANCORP: Insurers Fight Coverage for $355MM Theft --------------------------------------------------------- Lisa Uhlman at Bankruptcy Law360 reports that a group of insurers fired back Tuesday at the bankruptcy trustee for IndyMac Bancorp Inc., seeking to dismiss his claims that they owe insurance payouts for the executives who allegedly helped steal $355 million from the bank. Law360 relates that Chapter 11 trustee Alfred H. Siegel filed the adversary suit in February seeking a determination of the coverage the insurers owe in relation to an earlier suit he filed against IndyMac's individual directors over the alleged misappropriation. About Indymac Based in Pasadena, California, IndyMac Bancorp Inc. (NYSE:IMB) -- http://www.indymacbank.com/-- was the holding company for IndyMac Bank FSB, a hybrid thrift/mortgage bank that originated mortgages in all 50 states of the United States. On July 11, 2008, the Office of Thrift Supervision closed IndyMac Bank and appointed FDIC as the bank's receiver. Thacher Proffitt & Wood LLP was engaged as counsel to the FDIC. All non-brokered insured deposit accounts and substantially all of the assets of the bank were transferred to IndyMac Federal Bank, F.S.B., Pasadena, CA, a newly chartered full-service FDIC-insured institution. On March 19, IndyMac Federal Bank was sold to OneWest Bank, F.S.B., Pasadena, California. OneWest Bank, FSB is a newly formed federal savings bank organized by IMB HoldCo LLC. Indymac Bancorp filed for Chapter 7 bankruptcy protection on July 31, 2008 (Bankr. C.D.Calif., Case No. 08-21752). Representing the Debtor are Dean G. Rallis, Jr., Esq., and John C. Weitnauer, Esq. Indymac had about $32.01 billion in assets as of July 11, 2008. In court documents, IndyMac disclosed estimated assets of $50 million to $100 million and estimated debts of $100 million to $500 million. J.B. POINDEXTER: Moody's Upgrades Corp. Family Rating to 'B2' ------------------------------------------------------------- Moody's Investors Service upgraded J.B. Poindexter & Co., Inc.'s Corporate Family and Probability of Default ratings to B2 from B3. The company's existing 8.75% senior unsecured notes due March 2014 were also upgraded to B3 from Caa1. The company's short-term speculative grade liquidity rating was affirmed at SGL-3. The rating outlook is stable. These ratings/assessments have been affected: Corporate Family Rating, upgraded to B2 from B3; Probability of Default Rating, upgraded to B2 from B3; $200 million senior unsecured notes due March 2014, upgraded to B3 (LGD4, 63%) from Caa1 (LGD4, 62%); Speculative Grade Liquidity Rating, affirmed at SGL-3. The outlook remains stable. RATINGS RATIONALE The rating upgrade to a B2 CFR reflects Moody's expectations for continued improvement in operational and financial performance, as well as liquidity at J.B. Poindexter. The rating action also recognizes significant increases in backlog especially at the company's Morgan, Morgan Olson, and Specialty Manufacturing segments, and the generally better outlook for class 5-7 truck sales for 2011 and 2012. J.B. Poindexter has been able to reduce its debt leverage (on a Moody's adjusted basis) from over 7 times at its recent recession-era peak at March 31, 2010 to closer to 5 times at the most recent quarter ended June 30, 2011. Moody's expects leverage to further decline under 5 times over the near term. Moody's also expect interest coverage to improve above 1.5x EBIT-to-Interest and free cash flow to remain positive over the intermediate term. The stable outlook assumes that continued improvement in production volumes across major end markets and robust backlogs will result in improved credit metrics for the company. The outlook further anticipates that J.B. Poindexter will maintain a good liquidity profile (including a healthy cash balance) and will not pursue leveraging transactions. An additional near-term ratings upgrade is unlikely. However, Moody's could consider a positive action with expectations for leverage to be sustained below 4.0x debt-to-EBITDA and interest coverage in excess of 2.5x EBIT-to-interest. Absent permanent debt reduction, a rating upgrade would also likely require progress towards integrating existing businesses and improving through-the- cycle profitability above and beyond any positive cyclical effects from higher vehicle production. Moody's could consider a negative action with expectations for leverage in excess of 6.0x debt-to- EBITDA, interest coverage below 1.0x EBIT-to-interest, or if the company experienced a deterioration in its liquidity position. Moody's could also consider a negative action if J.B. Poindexter pursues leveraging transaction or adopts a more aggressive financial philosophy. The principal methodology used in rating J.B. Poindexter & Co., Inc. was the Global Automotive Supplier Industry Methodology published in January 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. J.B. Poindexter & Co., Inc., headquartered in Houston, Texas, manufactures commercial truck bodies for medium-duty trucks, pickup truck caps and tonneau covers, truck bodies for walk-in step vans, funeral coaches, limousines and specialized buses, provides contract manufacturing services for precision metal parts and machining and casting services. J.B. Poindexter's revenue for the LTM period ended June 30, 2011 was approximately $613 million. JACKSON GREEN: Stipulates With Lender on Use of Cash Collateral --------------------------------------------------------------- The Hon. Thomas S. Utschig of the U.S. Bankruptcy Court for the Western District of Wisconsin has approved a stipulation between Jackson Green LLC and Wells Fargo Bank, N.A., as trustee for the registered Holders of Credit Suisse First Boston Mortgage Securities Corp., Commercial Mortgage Pass-Through Certificates, Series 2006-C4, on the Debtor's use of cash collateral. The terms of the stipulation are: 1. The Debtor will have the right to use cash collateral to pay ordinary and customary operating expenses in the normal course excluding any payments directly for the benefit of David and Paula Heyes or their management company until the court hearing scheduled for Sept. 21, 2011, at 11:00 a.m. 2. The Debtor will promptly pay $3,230 to the escrow for insurance, and will maintain insurance on the property in the future, starting on July 20, 2011. 3. The Debtor will make a monthly payment of $43,400 into an escrow account to pay the real estate taxes, starting on July 20, 2011. 4. The Debtor will pay the bank $78,370 per month for adequate protection, with the first monthly payment due July 20, 2011. About Jackson Green Based in Minocqua, Wisconsin, Jackson Green LLC owns a commercial office building and parking lot in Chicago. Jackson Green originally filed for Chapter 11 bankruptcy (Bankr. W.D. Wis. Case No. 09-10099) on Jan. 9, 2009. The Court confirmed the Debtor's chapter 11 plan on May 18, 2010. Jackson Green returned to bankruptcy (Bankr. W.D. Wis. Case No. 11-14038) on June 23, 2011. Judge Thomas S. Utschig presides over the so-called Chapter 22 case. The Law Office of Terrence J. Byrne serves as the Debtor's Chapter 22 counsel. In its schedules, the Debtor disclosed $25,194,530 in assets and $22,838,968 in liabilities. The petition was signed by Paula Heyes, member. Secured lender Wells Fargo is represented by lawyers at Foley & Lardner LLP. JIM SLEMONS HAWAII: Court Declines to Review Disqualification Bid ----------------------------------------------------------------- Bankruptcy Judge Lloyd King denied Continental Investment Co. Ltd.'s 270-page motion, including exhibits, asking the Court to reconsider the order denying Jim Slemons Hawaii, Inc.'s motion to disqualify the bankruptcy judge. Continental seeks clarification of certain language contained in the Memorandum Concerning the Debtor's Motion to Disqualify United States Bankruptcy Judge. Continental contends that there is no discrepancy between statements made by the parties and comments of Judge Faris at a hearing on Oct. 19, 2009, and the resulting Order Regarding Continental Investment Company, Ltd.'s Motion for Order Re: Timely Payment of Post-Petition Rent. Continental requests the Court to enter an amended memorandum revising all language which indicates the existence of those discrepancies. Judge King said the issue before the court was whether or not to disqualify the presiding bankruptcy judge, not the Debtor's claim of a discrepancy between the judge's verbal ruling at the hearing on Oct. 19, 2009, and the written order, prepared by counsel for Continental, that resulted from that hearing. Counsel for Continental was given at least three opportunities to explain why the written order seems to differ from the judge's instructions, but offered no persuasive argument that there was, in fact, no discrepancy. The motion to disqualify the presiding bankruptcy judge has been denied, even with the assumption of a discrepancy. The ruling on the motion to disqualify would not change in the event of a determination that there is no discrepancy, Judge King said. A copy of Judge King's Aug. 18, 2011 Memorandum is available at http://is.gd/vNm30Tfrom Leagle.com. The ruling denying the Debtor's second bid to disqualify the judge was published in the Aug. 8 edition of the Troubled Company Reporter. The motion arises from apparent inconsistencies between a verbal ruling by the judge and the entered order, which resulted from the verbal ruling. It is alleged that the judge, counsel for a Debtor's lessor, Continental Investment Company, Ltd., and the Assistant United States Trustee are part of an 'old boy network' and therefore biased against the Debtor's counsel. They are alleged to have cooperated or conspired to allow the lessor to 'steal' a valuable leasehold estate of the Debtor. About Jim Slemons Hawaii Ewa Beach, Hawaii-based Jim Slemons Hawaii, Inc., filed for Chapter 11 bankruptcy protection (Bankr. D. Hawaii Case No. 09-01802) on Aug. 10, 2009, listing $750,000 in total assets and $229,098 in total debts. The Chapter 11 case was dismissed by order entered on July 13, 2010. However, it remains open to address unresolved matters, including the disposition of funds once held in a trust account maintained by the Debtor's counsel, Anthony P. Locricchio, Esq. Lessor Continental Investment Company is represented by Jerrold K. Guben, Esq. -- jkg@opglaw.com -- at O'Connor Playdon & Guben LLP. JOE ALEXANDER: Barred From Pursuing Legal Malpractice Claim ----------------------------------------------------------- Bankruptcy Judge Joan A. Lloyd denied the request of Joe S. Alexander to compel Mark Flener, the Chapter 7 trustee in his case, to file an adversary proceeding against Mr. Alexander's former attorney Scott Bachert for legal malpractice. The Debtor alleges that from June 6, 2006 through Nov. 28, 2008, the Chapter 7 Trustee became aware of concealed pre-petition financial transactions by Mr. Bachert involving the Debtor. The Debtor contends that the automatic stay should not have been terminated and that the Chapter 7 Trustee should have pursued the matter against Mr. Bachert. The Debtor claims that on or about Oct. 7, 2007, the Debtor advised the Chapter 7 Trustee fully of potential malpractice claims against Mr. Bachert, but that the Chapter 7 Trustee abandoned such claims in 2008. According to Judge Lloyd, the record of the Debtor's case clearly demonstrates that the Debtor had an opportunity to pursue his alleged malpractice claim against Mr. Bachert, that he had an opportunity to object to the Chapter 7 Trustee's abandonment of the claim and that he failed to diligently pursue his legal options. This claim is now barred as a matter of law. A copy of Judge Lloyd's Aug. 17, 2011 Memorandum-Opinion is available at http://is.gd/ItRuwafrom Leagle.com. In 2006, Mr. Alexander was named as a Defendant in a civil action in Barren Circuit Court filed by Mammoth Medical, Inc. The Debtor consulted with and retained Mr. Bachert regarding legal representation and bankruptcy advise in an effort to stay the Barren Circuit Court civil action and to deal with tax issues and pending financial matters. On April 17, 2006, Mr. Bachert filed a petition (Bankr. W.D. Ky. Case No. 06-10238) on behalf of the Debtor seeking relief under Chapter 13 of the Bankruptcy Code. The civil matter pending in the Barren Circuit Court was stayed by the filing of the Voluntary Petition pursuant to 11 U.S.C. Sec. 362. On April 27, 2006, the Debtor's case was converted from a Chapter 13 proceeding to one under Chapter 11 of the Bankruptcy Code. On June 16, 2006, the Court granted the Debtor's request to convert his Chapter 11 case to one under Chapter 7 of the Bankruptcy Code. Mark Flener was appointed as Chapter 7 Trustee. KINETIC CONCEPTS: Moody's Assigns 'B2' Corporate Family Rating -------------------------------------------------------------- Moody's Investors Service has assigned Corporate Family (CFR) and Probability of Default Ratings of B2 in connection with a proposed LBO of Kinetic Concepts, Inc. (KCI). Concurrently, a Ba3 rating was assigned to a new first lien credit facility. The ratings outlook is stable. On July 13, 2011, a consortium of funds including Apax Partners and controlled affiliates of Canada Pension Plan Investment Board and Public Sector Pension Investment Board announced that they had entered into a definitive agreement to acquire KCI through acquisition vehicle Chiron Merger Sub, Inc. (Chiron) in a transaction valued at $6.3 billion before costs and expenses. Chiron intends to fund the transaction with cash on hand at KCI, a $1.75 billion equity contribution, a $2.6 billion senior secured term loan and $2.15 billion in committed bridge loans (unrated). A $200 million senior secured revolver is expected to be undrawn at closing. The merger agreement provides for a 40-day "go shop" period (expires on August 21) during which KCI may seek to solicit a higher purchase price from other bidders. The transaction is expected to close in the fourth quarter of 2011, subject to customary closing conditions including approval by KCI's shareholders and regulatory clearance. Upon consummation of the transaction, Chiron will merge with and into KCI. Ratings assigned to Chiron Merger Sub, Inc.: Corporate Family Rating, B2 Probability of Default Rating, B2 Proposed $2.6 billion first lien term loan due 2018, Ba3 (LGD2, 26%) Proposed $200 million first lien revolver due 2016, Ba3 (LGD2, 26%) Existing ratings of KCI will be withdrawn upon closing of the transaction and ensuing repayment of outstanding debt obligations. The new ratings are subject to successful completion of the proposed transaction and Moody's review of final documentation. RATINGS RATIONALE The B2 CFR reflects high financial leverage (debt / EBITDA) and modest interest coverage on a pro forma basis, despite KCI's relatively strong profitability margins and good near-term liquidity profile. The transaction will add about $3.5 billion of incremental debt to the capital structure, raising financial leverage to approximately 6.7 times using Moody's standard adjustments. Additionally, KCI faces product concentration risk, declining revenues in the therapeutic support systems segment, and risks associated with increasing competitive and reimbursement pressures for the Vacuum Assisted Closure (V.A.C.) franchise, which comprises about 70% of the company's revenues. The ratings benefit from KCI's considerable scale and the proven clinical efficacy of the V.A.C. product for use in intractable wounds, and the large addressable markets of KCI's wound care and regenerative medicine products. "While KCI benefits from market leadership in the wound care industry and a growing presence in the regenerative medicine market through increased penetration of biologics products, operating results may become pressured by competitive forces in the next few years," said Moody's Assistant Vice President Suzanne Wingo. "For example, uncertainties exist in Medicare's Round II Competitive Bidding process and the potential inclusion of Negative Pressure Wound Therapy products in 2013. A highly levered capital structure does not provide much cushion against potential shortfalls in earnings and limits financial flexibility." The stable ratings outlook incorporates modest competitive and pricing pressure on V.A.C. products, partially offset by anticipated volume growth from new product introductions and international expansion. Given reimbursement uncertainties, competitive pressures and KCI's high financial leverage, Moody's does not anticipate a ratings upgrade in the near-term. However, Moody's could upgrade the ratings if more clarity arises within the reimbursement environment and KCI were to diversify its product base, achieve consolidated organic revenue growth, maintain gross margins, and reduce debt such that financial leverage were to fall below 5.5 times and free cash flow to debt were to exceed 5%, both on a sustained basis. Moody's could downgrade the ratings if competitive or pricing/reimbursement pressures resulted in material top-line deterioration or margin contraction such that financial leverage was not maintained below 6.5 times or if free cash flow to debt were to turn negative for two or more quarters. The principal methodologies used in this rating were Global Medical Products & Device Industry published in October 2009, and Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Kinetic Concepts, Inc., headquartered in San Antonio, Texas, is a global medical technology company with leadership positions in advanced wound care, regenerative medicine and therapeutic support systems (i.e., medical beds). The company's advanced wound care systems incorporate proprietary V.A.C. technology. KCI reported revenues of approximately $2.1 billion for the twelve months ended June 30, 2011. KNOWLEDGEFUNDING OHIO: Moody's Revises August 16 Release -------------------------------------------------------- Moody's Investors Service downgraded six classes of senior tax- exempt student loan-backed bonds issued by KnowledgeFunding Ohio, Inc. under a Master Indenture established as of December 1st 2005. The underlying collateral includes a pool of Federal Family Education Loan Program (FFELP) student loans that are guaranteed by the Department of Education. RATINGS: The complete actions are: Issuer: KnowledgeFunding Ohio, Inc. (2005 Indenture) 2005A-1, Downgraded to Caa3; previously on July 9, 2010 Baa1 Placed Under Review for Possible Downgrade 2005A-2, Downgraded to Caa3; previously on July 9, 2010 Baa1 Placed Under Review for Possible Downgrade 2005A-3, Downgraded to Caa3; previously on July 9, 2010 Baa1 Placed Under Review for Possible Downgrade 2006A-1, Downgraded to Caa3; previously on July 9, 2010 Baa1 Placed Under Review for Possible Downgrade 2006A-2, Downgraded to Caa3; previously on July 9, 2010 Baa1 Placed Under Review for Possible Downgrade 2006A-3, Downgraded to Caa3; previously on July 9, 2010 Baa1 Placed Under Review for Possible Downgrade RATINGS RATIONALE The downgrades are caused by an erosion of excess spread due to the failed auction rate market. Since the collapse of the auction rate market in the beginning 2008, the coupon rates on these bonds have been reset to a "failed-auction" rate, which increases (among other things) if the ratings of the bonds fall below Baa. Because we are downgrading the bonds below the trigger levels, their coupon rates increase to the lesser of a) 265% times the higher of the after-tax equivalent rate (defined as a product of (i) the financial commercial paper rate, and (ii) one minus the corporate tax rate), and the BMA index, and b) 14%. The higher coupon rates will further erode excess spread in the future, which will, in turn, have a significant negative effect on the parity levels and expose the deal to a significant default risk. Moody's expects the deal to continue generating negative excess spread, which indicates that the interest paid on the student loan collateral does not cover the interest on the bonds plus the fees. The current total parity (a ratio of total assets plus escrow fund to total liabilities) has remained at approximately 97% over the past year. We expect the deal will continue to experience difficulty in building up parity due to the negative excess spread discussed above. The performance expectations for a given variable indicate Moody's forward-looking view of the likely range of performance over the medium term. From time to time, Moody's may, if warranted, change these expectations. Performance that falls outside the given range may indicate that the collateral's credit quality is stronger or weaker than Moody's had anticipated when the related securities ratings were issued. Even so, a deviation from the expected range will not necessarily result in a rating action nor does performance within expectations preclude such actions. The decision to take (or not take) a rating action is dependent on an assessment of a range of factors including, but not exclusively, the performance metrics. Primary sources of uncertainty with regard to excess spread are increased basis risk. Ratings on Class A would not be upgraded if spread between LIBOR and the financial CP is 10 bps lower, or downgraded if the spread is 10 bps higher. To assess rating implications of the higher expected losses, each individual transaction was run through a variety of stress scenarios using the Structured Finance Workstation(R) (SFW), a cash flow model developed by Moody's Wall Street Analytics. In monitoring securitizations backed by student loans Moody's evaluates operational and transaction governance risks introduced by nonperformance of various transaction parties, in addition to assessing liquidity and credit risks. The adherence of the transaction parties to legal agreements governing securitization transactions is the essential element of assuring that noteholders receive the timely payments of interest and ultimate repayment of their principal investments. Moody's monitors compliance with covenants and other legal provisions of the transaction documents. In addition, Moody's assesses both liquidity and credit risks of the student loan transactions. The factors affecting liquidity and credit performance of a transaction include defaults, guarantor reject rates, voluntary prepayments, basis risk, borrower benefit utilization, and the number of borrowers in non-repayment status, such as deferment and forbearance. As a part of Moody's analysis, we examine historical FFELP static pool performance data. To the extent that performance data is available from a specific issuer, that information is used to arrive at Moody's cash flow assumptions for that particular issuer. If an issuer's data are either limited or unavailable, Moody's assumptions are based on FFELP performance data received from other participants. Historical interest rates and spreads are also analyzed to evaluate the basis risk between the interest rate to which the notes are indexed and the interest rate to which the FFELP loans are indexed. This historical data is used to derive at expected, or most likely, outcome for each variable. These expected defaults, prepayments, interest rates, and other assumptions are then stressed in accordance with the rating categories requested by the issuer. Factors that influence the stress levels include the availability of relevant issuer-specific performance data, the seasoning of the loans, collateral concentrations (school types, loan programs), the financial strength and stability of the servicer, and the general economic environment. These stressed assumptions are then incorporated into a cash flow model that takes into account the FFELP loan characteristics as well as structural (e.g., starting parity, cash flow waterfall, bond tranching, etc.) and pricing features of the transaction. The cash flow model outputs are analyzed to determine whether the transaction as structured by the issuer has sufficient credit protection to pay off the notes by their legal final maturity dates. In certain circumstances where cash flow runs are not available, we rely on model results from similar transactions. We also analyze the liquidity risk of the transaction given that borrowers can be in non-repayment status while in school, grace, deferment or forbearance status, and the transaction can experience delays in default reimbursement and other payments. Basis risk is the primary credit risk in FFELP student loan ABS. Moody's Aaa stressed basis risk assumption between LIBOR and the CP Rate is 25 basis points with certain periods in which the spread increases to 150 basis points. This is based on an analysis of historical spreads between the two indices. For additional information, please see "Methodology Update on Basis Risk in FFELP Student Loan-Backed Securitization," on moodys.com. Other methodologies and factors that may have been considered in the process of rating this issue can also be found in the Rating Methodologies sub-directory on Moody's website. KZMSS AGAIN: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: KZMSS Again, LLLP dba TLC Outpatient Surgery Center 201 West Guava Street Lady Lake, FL 32159 Bankruptcy Case No.: 11-12388 Chapter 11 Petition Date: August 15, 2011 Court: United States Bankruptcy Court Middle District of Florida (Orlando) Debtor's Counsel: Jimmy D. Parrish, Esq. BAKER & HOSTETLER LLP 200 S Orange Avenue SunTrust Center - Suite 2300 Orlando, FL 32801 Tel: (407) 649-4000 Fax: (407) 841-0168 E-mail: jparrish@bakerlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flmb11-12388.pdf The petition was signed by Jeffrey Mandume Kerina, general partner, secretary-treasurer. LA VILLITA: Can Access Cash Collateral of Trust Until Aug. 31 ------------------------------------------------------------- On Aug. 1, 2011, the U.S. Bankruptcy Court for the Western District of Texas, San Antonio Division, entered a sixth interim order granting La Villita Motor Inns, J.V., authority to use cash collateral of the Trust, during the period from Aug. 1, 2011, through Aug. 31, 2011, solely in accordance with a rolling 30-day budget. As adequate protection, the Trust, or GS Mortgage Securities Corporation II, Commercial Mortgage Pass-Through Certificates, Series 1999-C1, is granted post-petition liens upon: (i) all existing assets and property interests of the Debtor; and (ii) all after-acquired property of the estate of the type comprising the pre-petition collateral and with to the same order of priority as that for the pre-petition liens. The Debtor will provide ORIX Capital Markets LLC (as special servicer for U.S. Bank National Association, Trustee for the Trust), with monthly reports reflecting (i) monthly income and expenses, (ii) monthly operating reports and financial statements; (iii) actual disbursements made during each such month; (iv) confirmation of insurance coverage and Property Tax Escrow deposits; and (v) occupancy reports. In addition, on Aug. 1, 2011, the Debtor will pay ORIX the sum of $38,331.32 as adequate protection for the alleged secured claim filed by ORIX. Counsel for ORIX may be reached at: Jay H. Ong, Esq. MUNSCH HARDT KOPF & HARR, P.C. 401 Congress Avenue, Suite 3050 Austin, TX 78701 Fax: (512) 391-6149 E-mail: jong@munsch.com About La Villita Motor Inns JV San Antonio, Texas-based La Villita Motor Inns JV is a joint venture, formed on or about April 14, 1980, that owns and operates a hotel located at 100 La Villita in San Antonio, Texas, known as the Riverwalk Plaza Hotel. It filed for Chapter 11 bankruptcy protection (Bankr. Case No. 10-54864) on Dec. 17, 2010. Debra L. Innocenti, Esq., at Oppenheimer Blend Harrison & Tate, serves as the Debtor's bankruptcy counsel. The Debtor estimated assets at $10 million to $50 million and debts at $1 million to $10 million. LAUGH OUT: Case Summary & 9 Largest Unsecured Creditors ------------------------------------------------------- Debtor: Laugh Out Loud Stations, LLC dba LOL Stations 3241 Plaza Way Waldorf, MD 20603 Bankruptcy Case No.: 11-26638 Chapter 11 Petition Date: August 14, 2011 Court: United States Bankruptcy Court District of Maryland (Greenbelt) Judge: Paul Mannes Debtor's Counsel: Rowena Nicole Nelson, Esq. LAW OFFICE OF ROWENA N. NELSON & ASSOC. 1801 McCormick Drive, Suite 150 Largo, MD 20774 Tel: (301) 358-3348 Fax: (877) 728-7744 E-mail: rnelson@rnnlawmd.com Scheduled Assets: $2,650,738 Scheduled Debts: $591,757 A list of the Company's nine largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mdb11-26638.pdf The petition was signed by Regina Bethea, chief managing member. LAXMI REALTY: Case Summary & 19 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Laxmi Realty, Inc. 333 S Federal Hwy Dania, FL 33004 Bankruptcy Case No.: 11-32840 Chapter 11 Petition Date: August 16, 2011 Court: United States Bankruptcy Court Southern District of Florida (Fort Lauderdale) Judge: Raymond B. Ray Debtor's Counsel: Ronald Lewis, Esq. BEARDEN, LEWIS & THOMAS, LLP 445 E Palmetto Park Rd Boca Raton, FL 33432 Tel: (561) 368-7474 Fax: (561) 368-0293 E-mail: rlewis@beltlawyers.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 19 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flsb11-32840.pdf The petition was signed by Anil B. Patel, president. LEED CORP: Taps Maynes Taggart PLLC as Bankruptcy Counsel --------------------------------------------------------- The Leed Corporation asks the U.S. Bankruptcy Court for the District of Idaho for permission to employ Robert J. Maynes and Steven L. Taggart of Maynes Taggart PLLC as counsels. The Debtor related that the Court has approved the employment of Mr. Maynes as its counsel, however, Mr. Maynes, and Mr. Taggart, formed the firm of Maynes Taggart PLLC. Given the size and complexity of Debtor's case, the Debtor desires to engage the services of both Messrs. Maynes and Taggart of Maynes Taggart PLLC. As counsels, Messrs. Maynes and Taggart will, among other things: a. give the Debtor legal advice with respect to his powers and duties under Chapter 11; b. take the necessary action to avoid liens as required, and assist the Debtor in performing his other statutory duties; and c. prepare on behalf of your applicant all necessary applications, answers, orders, reports, and any other legal papers required by the Court. The hourly rates of the firms' personnel are: Mr. Maynes $180 Mr. Taggart $170 Staff $75 To the best of Debtor's knowledge, Messrs. Maynes and Taggart are "disinterested persons" as that term is defined in Section 101(14) of the Bankruptcy Code. About The Leed Corporation Twin Falls, Idaho-based The Leed Corporation -- dba Green Cut Sprinklers and Landscaping, Leed Corp., Quality Built Homes, Green Cut Construction, Shoshone Developers, Desert Green Sprinklers & Landscaping, Green Cut Lawn Care, and Desert Green -- is a real estate developer, including new construction and land development, as well as landscaping and related care and maintenance of existing real estate in southern Idaho, primarily based out of Shoshone, Idaho. The Company filed for Chapter 11 protection (Bankr. D. Idaho Case No. 10-40743) on April 29, 2010. Robert J. Maynes, Esq., who has an office in Idaho Falls, Idaho, assists the Debtor in its restructuring effort. The Debtor estimated $10 million to $50 million in assets and $1 million to $10 million in debts in its Chapter 11 petition. LEED CORP: Committee Seeks to Retain C. Jorgensen as Attorney ------------------------------------------------------------- The Official Committee of Unsecured Creditors of The Leed Corporation seeks to retain Craig R. Jorgensen, Esq. as its attorney. Mr. Jorgensen will: * give the Creditors' Committee legal advice with respect to its duties and powers in this case; * assist the Creditors' Committee in its investigation of the acts, conduct, assets, liabilities, and financial condition of the Debtor, the operation of the Debtor's business, investigation of the activities of the other creditors, and any other matter relevant to the case; * participate with the Creditors' Committee in matters relating to the Debtor's plan of reorganization; * assist the Creditors' Committee in requesting the appointment of a trustee or examiner, should it become necessary; * assist the Creditors' Committee in responding to subpoenas served on committee members; and * perform other legal services as may be required and in the interest of the Creditors' Committee. Mr. Jorgensen will be paid at a rate of $185 per hour plus costs incurred. He can be reached at: Craig R. Jorgensen Attorney at Law 602 S. 5th PO Box 4904 Pocatello, Idaho 83205-4904 Tel: 208-237-4100 Fax: 208-232-8867 About The Leed Corporation Twin Falls, Idaho-based The Leed Corporation -- dba Green Cut Sprinklers and Landscaping, Leed Corp., Quality Built Homes, Green Cut Construction, Shoshone Developers, Desert Green Sprinklers & Landscaping, Green Cut Lawn Care, and Desert Green -- is a real estate developer, including new construction and land development, as well as landscaping and related care and maintenance of existing real estate in southern Idaho, primarily based out of Shoshone, Idaho. The Company filed for Chapter 11 protection (Bankr. D. Idaho Case No. 10-40743) on April 29, 2010. Robert J. Maynes, Esq., who has an office in Idaho Falls, Idaho, assists the Debtor in its restructuring effort. The Debtor estimated $10 million to $50 million in assets and $1 million to $10 million in debts in its Chapter 11 petition. LEHMAN BROTHERS: Wins Approval of Claims Determination Process -------------------------------------------------------------- U.S. Bankruptcy Judge James Peck authorized Lehman Brothers Holdings Inc. to implement a process to determine the allowed amount of claims filed against the company and its affiliated debtors for the purpose of voting and distribution under their proposed Chapter 11 plan. The claims totaling $55 billion are all based on structured securities either issued or guaranteed by LBHI. A full-text copy of the court order detailing the process is available for free at: http://bankrupt.com/misc/LBHI_SSClaimsProcess.pdf Lehman Brothers sought court approval anew to implement a process to determine the allowed amount of more than 21,000 proofs of claim for the purpose of voting and distribution under its new Chapter 11 plan. LBHI's lawyer, Alfredo Perez, Esq., at Weil Gotshal & Manges LLP, in Houston, Texas, says the determination process would ease the administration of the proofs of claim without affecting the rights of any claimant to dispute the company's proposed allowed claim amounts. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Creditors back Private Sale of Rosslyn ------------------------------------------------------- The ad hoc group of Lehman Brothers creditors expressed its support for the private sale of Rosslyn LB Syndication Partner LLC's stake in a joint venture. Lehman Brothers Holdings Inc. earlier sought a court ruling authorizing Rosslyn LB, an indirect subsidiary of the company, to sell its stake in Rosslyn Syndication Partners JV LP for not less than $385 million to a subsidiary or affiliate of another joint venture, U.S. Real Estate Opportunities I LP. "The group has concluded that disposition by private sale is appropriate under these circumstances," says the group's lawyer, Gerard Uzzi, Esq., at White & Case LLP, in New York. The statement came after LBHI assured the ad hoc group that it won't use the private sale of Rosslyn LB's interest as a precedent for dispensing with court-approved auction processes in the future. The company also agreed to provide a post-closing notice of the adjusted purchase price in the interest of transparency. In a court filing, the Official Committee of Unsecured Creditors likewise expressed its support for court approval of the proposed sale, saying now is the right time to monetize the asset given the current market condition. "The Committee agrees with [Lehman] that the commercial real estate and capital markets have significantly recovered and that retaining the interest will not provide [Lehman's] estates with sufficiently increased value on a risk-adjusted basis," says its lawyer, Dennis Dunne, Esq., at Milbank Tweed Hadley & McCloy LLP, in New York. The Court is set to hold a hearing on August 17, 2011, to consider approval of the proposed sale. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Recovers $881-Mil. From ADR Process ---------------------------------------------------- Weil Gotshal & Manges LLP, Lehman Brothers' legal counsel, filed a status report on the settlement of claims negotiated by the Debtors through the alternative dispute resolution process. The status report notes that in the past month, the Debtors have served 14 ADR notices, bringing the total number of notices served to 158 on 184 counterparties. The Debtors also reached settlement with counterparties in eight additional ADR matters, five as a result of mediation. Upon closing of those settlements, the Debtors will recover a total of $881,414,670. Settlements have now been obtained in 97 ADR matters involving 111 counterparties. As of August 12, 2011, 48 of the 53 ADR matters that reached the mediation stage and concluded were settled through mediation. Only five mediations were terminated without settlement. Nine more mediations are scheduled to be conducted for the period August 23 to September 23, 2011. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Wins OK for Moulton for Foreclosure Litigation --------------------------------------------------------------- Lehman Brothers Holdings Inc. and its affiliated debtors obtained authority from the bankruptcy court to employ Moulton Bellingham PC as their special counsel effective March 1, 2011. Moulton Bellingham has served as one of the "ordinary course" professionals of the Debtors. Its fees and expenses, however, are expected to exceed the $1 million compensation cap for OCPs, prompting the Debtors to seek court approval to employ the firm pursuant to Section 327 of the Bankruptcy Code. As special counsel, the firm will continue to provide the same services, which include representing the Debtors in a foreclosure litigation and the defense of lender liability claims asserted in Montana courts. Moulton Bellingham will be paid for its services on an hourly basis and will be reimbursed for its expenses. The hourly rates for the firm's professionals range from $210 to $310 for partners, $150 to $205 for associates, and $140 for paralegals and other non-lawyer professionals. In an affidavit, Doug James, Esq., at Moulton Bellingham, declares that the firm is "not currently adverse to the Debtors or their affiliates." About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Drops Plea to Hire Pachulski for 2 Civil Cases --------------------------------------------------------------- Lehman Brothers Holdings Inc. withdrew its application to authorize Pachulski Stang Ziehl & Jones LLP to represent the company in two civil cases pending before a district court in California. LBHI previously asked Judge Peck to allow its special counsel to handle the cases against Beverly Hills Estates Funding Inc. and U.S. Bank N.A. The cases, which were previously handled by Severson & Werson, were filed on behalf of Aurora Bank FSB, a Lehman subsidiary. The withdrawal comes after the Office of the U.S. Trustee, a Justice Department agency that oversees bankruptcy cases, opposed the application. 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) LEONID CHATKHAN: Bid for More Time to Challenge Discharge Denied ---------------------------------------------------------------- Bankruptcy Judge Carla E. Craig denied a motion by Bill Stathakos seeking an extension of time to object to Leonid Chatkhan's discharge and to the dischargeability of a debt pursuant to 11 U.S.C. Sections 523 and 727. The Court held that Mr. Stathakos failed to diligently pursue discovery or to take any steps to seek the denial of the debtor's discharge, or to seek a determination of nondischargeability with respect to his claim against the debtor, prior to the deadline to object to discharge or dischargeability, and because no justification has been offered for this delay nor any reason why his objections to discharge and dischargeability could not have been asserted prior to the deadline provided by the Bankruptcy Rules. On Dec. 31, 2010, Mr. Stathakos filed a proof of claim against the Debtor's estate for $6,000,000, of which $1,300,000 is alleged to be a secured claim. On Jan. 9, 2011, Mr. Stathakos filed the Extension Motion, seeking to extend the time to object to the Debtor's discharge under Sec. 727, and to object to the dischargeability of debt owed to him under Sec. 523. On Jan. 17, 2011, Mr. Stathakos filed a complaint for declaratory judgment against the Chapter 7 Trustee to determine his rights in certain assets of the estate. A copy of Judge Craig's Aug. 12, 2011 Decision is available at http://is.gd/kdQv2Rfrom Leagle.com. Counsel to Bill Stathakos is: Jonathan Bodner, Esq. NEIGER LLP 317 Madison Avenue, 21st Floor New York, NY 10017 Tel: 212-267-7342 Fax: 212-406-3677 E-mail: info@neigerllp.com http://www.neigerllp.com Leonid Chatkhan filed a voluntary Chapter 11 petition (Bankr. E.D.N.C. Case No. 10-46775) on July 19, 2010. At the behest of the United States Trustee, the case was converted to a case under chapter 7 on Oct. 20, 2010. Robert L. Geltzer was appointed the chapter 7 trustee. Counsel for the Debtor is: Wayne M. Greenwald, Esq. WAYNE GREENWALD, PC 99 Park Avenue, Suite 800 New York, NY 10016 Tel: 212-983-1922 Fax: 212-973-9494 E-mail: grimlawyers@aol.com The Chapter 7 Trustee may be reached at: Robert L. Geltzer, Esq. THE LAW OFFICES OF ROBERT L. GELTZER 1556 Third Avenue, Suite 505 New York, NY 10128 Tel: (212) 410-0100 E-mail: rgeltzer@epitrustee.com Special Litigation and Real Estate Counsel to the Chapter 7 Trustee are: Robert A. Wolf, Esq. Andrea Fisher, Esq. SQUIRE, SANDERS & DEMPSEY, L.L.P. 30 Rockefeller Plaza, 23rd Floor New York, NY 10112 Tel: (212) 872-9850 E-mail: rwolf@ssd.com LIONCREST TOWERS: Plan Disclosures Approval or Dismissal Tomorrow ----------------------------------------------------------------- The hearing to consider the approval of the disclosure statement explaining Lioncrest Towers LLC's proposed Chapter 11 plan has been continued to Aug. 23, 2011, at 10:30 a.m. The hearing to consider a request to dismiss the Debtor's case has also been continued to Aug. 23, 2011. The Debtor previously submitted the Disclosure Statement, which explains that, under the Debtor's Chapter 11 plan of reorganization, secured creditor Wells Fargo, owed $29.5 million, will be paid in full. It will be paid in monthly installments of interest for five years, plus four annual principal repayments of $300,000 each, with payment of the unpaid balance at the end of the fifth year. Unsecured creditors will also be paid in full in quarterly installments with interest over one year. Unsecured creditors are expected to recover $38,917 plus interest at 5%. Equity owners will receive no distribution but will retain its ownership interest. With respect to the case dismissal hearing, as reported in the Troubled Company Reporter on March 16, Wells Fargo Bank N.A. asked the Court to grant relief from the automatic stay to allow it to foreclose on its collateral, and dismiss the Debtor's case. About Lioncrest Towers, LLC Lioncrest Towers, LLC, owns and operates a residential apartment project in Richton Park, Illinois, known as Park Towers. It filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 10-36805) on Aug. 17, 2010. Richard H. Fimoff, Esq., at Robbins, Salomon & Patt, Ltd., in Chicago, assists the Debtor in its restructuring effort. The Debtor estimated assets and debts at $10 million to $50 million. LODGER LLC: Case Summary & Largest Unsecured Creditor ----------------------------------------------------- Debtor: Lodger LLC P.O. Box 3755 Center Line, MI 48015 Bankruptcy Case No.: 11-62128 Chapter 11 Petition Date: August 17, 2011 Court: U.S. Bankruptcy Court Eastern District of Michigan (Detroit) Judge: Thomas J. Tucker Debtor's Counsel: Michael A. Greiner, Esq. FINANCIAL LAW GROUP, P.C. 29405 Hoover Warren, MI 48093 Tel: (586) 693-2000 Fax: (586) 693-2000 E-mail: mike@financiallawgroup.com Scheduled Assets: $675,000 Scheduled Debts: $792,368 The petition was signed by Paul Marino, managing member. Affiliate that filed separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Paul William Marino and Linda Kay 11-55026 05/26/11 Marino The list of unsecured creditors filed together with its petition contains only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ First Place Bank Business Property $769,768 24725 W. Twelve Mile Road Southfield, MI 48034 LOS ANGELES DODGERS: Bingham Lose Bid to Strike Malpractice Claims ------------------------------------------------------------------ Carolina Bolado at Bankruptcy Law360 reports that Bingham McCutchen LLP lost its bid Thursday to preemptively strike Los Angeles Dodgers owner Frank McCourt's malpractice claims when a Massachusetts judge tossed the firm's suit claiming it acted properly when drafting a marital agreement that could cost McCourt control of the bankrupt team. Law360 relates that Suffolk County Judge Janet L. Sanders granted McCourt's motion to dismiss the suit, saying that the declaratory judgment procedure had never been used in the state to allow a party accused of a tort to preemptively sue the alleged victim. About the Los Angeles Dodgers Los Angeles Dodgers LLC operates the Los Angeles Dodgers, a professional Major League Baseball club in the Los Angeles metropolitan area. Frank McCourt, a Boston real-estate developer who unsuccessfully bid for the Boston Red Sox, bought the Dodgers from Rupert Murdoch's Fox Entertainment Group, Inc. in 2004 for $330 million. Mr. McCourt also bought the Dodgers Stadium from Fox for $100 million. Los Angeles Dodgers LLC filed for bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12010) on June 27, 2011, after MLB Commissioner Bud Selig rejected a television deal with News Corp.'s Fox Sports, leaving Mr. McCourt unable to make payroll for June 30 and July 1. Fox Sports has exclusive cable television rights for Dodgers games until the end of 2013 baseball season. Chapter 11 filings were also made for LA Real Estate LLC, an affiliated entity which owns Dodger Stadium, and three other related holding companies. The petition estimates assets of up to $500 million and debts of up to $1 billion. According to Forbes, the team is worth about $800 million, making it the third most valuable baseball team after the New York Yankees and the Boston Red Sox. Judge Kevin Gross presides over the case. Lawyers at Young, Conaway, Stargatt & Taylor and Dewey & LeBoeuf LLP serve as the Debtors' bankruptcy counsel. Epiq Bankruptcy Solutions LLC is the claims and notice agent. The LA Dodgers is the 12th sports team in North America to have sought bankruptcy protection, according to The Wall Street Journal. LUMEA STAFFING: Green Planet's Staffing Business in Chapter 11 -------------------------------------------------------------- Green Planet Group, Inc.'s wholly owned subsidiary Lumea, Inc completed the filing of Chapter 11 for two of its subsidiaries, Lumea Staffing, Inc and Lumea Staffing of California, Inc. The other operating companies of Lumea and Green Planet Group are not affected by these filings. The Chapter 11 filings will allow the Company to restructure the majority of its staffing business liabilities. These liabilities include $923,000 of secured claims and up to $25 million of unsecured claims. The management of the companies will be debtors-in-possession (DIP) while they develop reorganizational plans to resolve balances with their creditors and emerge as profitable entities. In addition, Green Planet Group is in negotiations to receive an infusion of new capital to ensure that it will be in a position to continue its operations and execute its business plan. Edmond L Lonergan, President/CEO, said: "Throughout the reorganization process, we will be conducting 'business as usual' and have taken every step possible to ensure that the Chapter 11 filings will not adversely affect our day-to-day temp staffing operations, nor the Company as a whole. The action will provide long-term relief from our debilitating legacy debt and allow us to pursue an ongoing strategy to build the Lumea staffing business into a national brand." Mr. Lonergan continued, "These filings will have no impact on Green Planets' shareholders other than when these two subsidiaries emerge as profitable entities; the share value is expected to reflect the overall improvement in the Company's balance sheet." The subsidiaries' Chapter 11 cases are pending in the United States Bankruptcy Court for the District of Arizona, Case 2:11-bk- 23582 and 2:11-bk-23585. Dean M. Dinner, of Nussbaun, Gillis and Dinner, P.C. serves as lead counsel to the Lumea Companies in their restructuring. About Green Planet Group Green Planet Group, Inc. -- http://www.greenplanetgroup.com/-- is based in Scottsdale, Arizona and engages in ongoing research and development to create products and services that enhance our environment. The Company's revenues are currently derived from the production and distribution of fuel-based energy conservation and clean-air products, as well as through the placement of members of the growing ranks of the unemployed into meaningful "green collar" careers. MAJESTIC CAPITAL: Can Hire BDO USA as Tax Preparers --------------------------------------------------- The Honorable Cecelia G. Morris has approved the application of Majestic Capital, Ltd., Majestic USA Capital, Inc., Compensation Risk Managers, LLC, Compensation Risk Managers of California, LLC, Eimar, LLC, and Embarcadero Insurance Holdings, Inc. to employ BDO USA, LLP as their tax preparers. BDO USA will apply for compensation and reimbursement of expenses in accordance with the procedures set forth in Sections 330 and 331 of the Bankruptcy Code, the applicable provisions of the Bankruptcy Rules, the Local Rules, the guidelines established by the U.S. Trustee, and procedures fixed by Court order. About Majestic Capital, Ltd. Headquartered in Poughkeepsie, New York City, Majestic Capital, Ltd., fdba CRM Holdings, Inc., filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 11-36225) on April 29, 2011. Affiliates also sought Chapter 11 protection Bankr. S.D. N.Y. Case Nos. 11-36221 - 11-36234) on April 29, 2011. Bankruptcy Judge Cecelia G. Morris presides over the case. Thomas Genova, Esq., at Genova & Malin, Attorneys represents the Debtors in their restructuring effort. Murphy & King, P.C. serves as the Debtors' co-counsel. The Debtors tapped Michelman & Robinson, LLP, as special counsel, and Day Seckler, LLP, as accountants and financial advisors. The Debtor disclosed $436,191,000 in assets and $421,757,000 in liabilities as of Dec. 31, 2010. Bruce F. Smith, Esq., and Steven C. Reingold, Esq., at Jager Smith P.C. represent the Official Committee of Unsecured Creditors. The Committee has also tapped J.H. Cohn LLP as its financial advisors. MARCO POLO: A.P. Moller Wants Adequate Protection for Cash Use -------------------------------------------------------------- A.P. Moller-Maersk A/S asks the U.S. Bankruptcy Court for the Southern District of New York to condition Marco Polo Seatrade B.V, et al.'s use of cash collateral on providing adequate protection or, in the alternative, providing relief from the automatic stay. Maersk set an Aug. 24, 2011, hearing on its adequate protection request. Objections, if any, are due Aug. 23, at 4:00 p.m. Maersk tells the Court that the July Sum and future sums due under the Pool Agreement constitute cash collateral of Maersk and it has not consented to the use of its cash collateral, nor has the Court, authorized the Debtors to use the case collateral. Under the Pool Agreement, the earnings of all vessels in the pool are shared by the vessels' owners based on a formula in the Pool Agreement. Handytankers K/S, a subsidiary of Maersk, pays the vessels' owners on a monthly basis. The Marco Polo Vessels are represented by Seaarland Shipping Management B.V. as manager of Group 2 in the pool. Maersk states that the Debtors have not provided any adequate protection for their use of Maersk's cash collateral, therefor, they cannot use Maersk's cash collateral without the provision of adequate protection for the use. If the Debtors do not or cannot provide adequate protection, Maersk will be entitled to relief from the automatic stay, for cause, enabling it to apply its cash collateral to its claim. Maersk is represented by: Andrew D. Gottfried, Esq. MORGAN, LEWIS & BOCKIUS LLP 101 Park Avenue New York, New York 10178-0600 Tel: (212) 309-6000 Fax: (212) 309-6001 E-mail: agottfried@morganlewis.com About Marco Polo Marco Polo Seatrade B.V. operates an international commercial vessel management company that specializes in providing commercial and technical vessel management services to third parties. Founded in 2005, the Company mainly operates under the name of Seaarland Shipping Management and maintains corporate headquarters in Amsterdam, the Netherlands. The primary assets consist of six tankers that are regularly employed in international trade, and call upon ports worldwide. Marco Polo and three affiliated entities filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-13634) on July 29, 2011. The other affiliates are Seaarland Shipping Management B.V.; Magellano Marine C.V.; and Cargoship Maritime B.V. Marco Polo is the sole owner of Seaarland, which in turn is the sole owner of Cargoship, and also holds a 5% stake in Magellano. The remaining 95% stake in Magellano is owned by Amsterdam-based Poule B.V., while another Amsterdam company, Falm International Holding B.V. is the sole owner of Marco Polo. Falm and Poule didn't file bankruptcy petitions. The filings were prompted after lender Credit Agricole Corporate & Investment Bank seized one ship on July 21, 2011, and was on the cusp of seizing two more on July 29. The arrest of the vessel was authorized by the U.K. Admiralty Court. Credit Agricole also attached a bank account with almost US$1.8 million on July 29. The Chapter 11 filing precluded the seizure of the two other vessels. Evan D. Flaschen, Esq., Robert G. Burns, Esq., and Andrew J. Schoulder, Esq., at Bracewell & Giuliani LLP, serve as bankruptcy counsel. The cases are before Judge James M. Peck. The petition said assets and debt are both more than US$100 million and less than US$500 million. MARCO POLO: Propsoes $1-Mil. Loan from Credit AgriCole, RBS ----------------------------------------------------------- Marco Polo Seatrade B.V, et al., ask U.S. Bankruptcy Court for the Southern District of New York for authorization to borrow up to $563,986, on an interim basis, and up to $1,000,000, on a final basis, of postpetition financing. The Debtors relate that despite their efforts to negotiate a consensual use of the cash collateral for a limited period, they still have not reached a consensus with any of their prepetition lenders. As of the Petition Date, the Debtors prepetition indebtedness is approximately $207,408,791, and consists of: a. Credit Agricole Facility -- $89,743,8384 outstanding under that certain loan agreement, dated as of Sept. 22, 2005; b. Royal Bank of Scotland Facility -- $122,000,0005 outstanding under that certain loan agreement, dated as of Aug. 14, 2007, among the Debtors, several lenders party thereto from time to time, and RBS as agent. The proposed material terms of the DIP Documents include, among other things: Prepetition Facilities: The Credit Agricole Credit Agreement and the RBS Credit Agreement DIP Credit Agreement Parties: Borrower: Seaarland Shipping Management B.V. Guarantors: Marco Polo Seatrade B.V., Magellano Marine C.V. and Cargoship Maritime B.V. DIP Lender: MPS DIP LLC or its designee Maturity: The DIP Facility terminates on the earliest to occur of: (i) Aug. 1, 2012, (ii) the effective date of any plan of reorganization with respect to any obligor, (iii) the date of conversion of any case to a case under Chapter 7 of the Bankruptcy Code, (iv) the date of any termination of the exclusivity period for any obligor; and (v) the date of any appointment of a Chapter 11 trustee or other disinterested person with expanded powers. Standby Nature; Use of Proceeds: The borrower will be entitled to draw on the DIP Facility (i) to pay necessary expenses to operate, insure and maintain the vessels, and (ii) to pay other administrative expenses, including allowed professional fees and expenses of the Debtors. Interest Rates : 5% interest per annum, which will accrue and be payable on the Stated Maturity Date. DIP Commitment: $1 million (plus accrued interest). Liens and Priorities: DIP Liens. The obligations of the Borrowers under the DIP Facility will be secured by these liens: a. first priority liens on all now owned or hereafter acquired assets and property of the obligors; b. junior priority liens on the DIP collateral to the extent that such DIP collateral; c. priming liens on the DIP collateral ahead of (i) the liens securing the Credit Agricole Collateral, (ii) the liens securing the RBS Collateral, (iii) any actual or asserted rights of setoff by the Prepetition Lenders, (iv) attachment of the interests owned by MPS in Futmarine B.V. filed by Top Ships USA, Inc. and/or its affiliates, and (v) liens or interests of any other party other than those holding valid, perfected and not avoidable maritime liens under applicable law for necessaries. Charging Liens. The loan will further be secured by a charging lien against the Credit Agricole Collateral and RBS Collateral. The DIP Facility will be entitled to superpriority administrative expense claim status, subject to certain carve out expenses. A full-text copy of the cash flow is available for free at http://bankrupt.com/misc/MARCOPOLO_amendedcashflow.pdf About Marco Polo Marco Polo Seatrade B.V. operates an international commercial vessel management company that specializes in providing commercial and technical vessel management services to third parties. Founded in 2005, the Company mainly operates under the name of Seaarland Shipping Management and maintains corporate headquarters in Amsterdam, the Netherlands. The primary assets consist of six tankers that are regularly employed in international trade, and call upon ports worldwide. Marco Polo and three affiliated entities filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-13634) on July 29, 2011. The other affiliates are Seaarland Shipping Management B.V.; Magellano Marine C.V.; and Cargoship Maritime B.V. Marco Polo is the sole owner of Seaarland, which in turn is the sole owner of Cargoship, and also holds a 5% stake in Magellano. The remaining 95% stake in Magellano is owned by Amsterdam-based Poule B.V., while another Amsterdam company, Falm International Holding B.V. is the sole owner of Marco Polo. Falm and Poule didn't file bankruptcy petitions. The filings were prompted after lender Credit Agricole Corporate & Investment Bank seized one ship on July 21, 2011, and was on the cusp of seizing two more on July 29. The arrest of the vessel was authorized by the U.K. Admiralty Court. Credit Agricole also attached a bank account with almost US$1.8 million on July 29. The Chapter 11 filing precluded the seizure of the two other vessels. Evan D. Flaschen, Esq., Robert G. Burns, Esq., and Andrew J. Schoulder, Esq., at Bracewell & Giuliani LLP, serve as bankruptcy counsel. The cases are before Judge James M. Peck. The petition said assets and debt are both more than US$100 million and less than US$500 million. MARINA BIOTECH: Posts $3.6-Mil. 2nd Quarter Net Loss ---------------------------------------------------- Marina Biotech, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $3.6 million on $129,000 of revenue for the three months ended June 30, 2011, compared with a net loss of $4.1 million on $193,000 of revenue for the same period last year. The Company reported a net loss of $7.2 million on $343,000 of revenue for the six months ended June 30, 2011, compared with a net loss of $13.6 million on $377,000 of revenue for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $32.2 million in total assets, $15.9 million in total liabilities, and stockholders' equity of $16.3 million. As reported in the TCR on March 29, 2011, KPMG LLP, in Seattle, Wash., expressed substantial doubt about Marina Biotech's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has incurred recurring losses and has an accumulated deficit, and has had recurring negative cash flows from operations. A copy of the Form 10-Q is available at http://is.gd/jiQW6n Bothell, Wash.-based Marina Biotech, Inc. (Nasdaq: MRNA) -- http://www.marinabio.com/-- is a biotechnology company, focused on the development and commercialization of RNA interference- (RNAi) and RNA-based therapeutics. MECHANICAL TECHNOLOGY: Posts $395,000 Net Loss in 2nd Quarter ------------------------------------------------------------- Mechanical Technology, Incorporated, filed its quarterly report on Form 10-Q, reporting a net loss of $395,000 on $2.1 million of revenues for the three months ended June 30, 2011, compared with a net loss of $700,000 on $2.0 million of revenues for the corresponding period last year. The Company reported a net loss of $456,000 on $4.7 million of revenues for the six months ended June 30, 2011, compared with a net loss of $2.6 million on $3.7 million on $4.7 million of revenues for the first half of 2010. The Company's balance sheet as of June 30, 2011, showed $4.1 million in total assets, $1.9 million in total liabilities, all current, and stockholders' equity of $2.2 million. PricewaterhouseCoopers in Albany, New York, expressed substantial doubt about Mechanical Technology'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 an accumulated deficit. A copy of the Form 10-Q is available at http://is.gd/A5xbqr Albany, N.Y.-based Mechanical Technology, Incorporated, operates in two segments, the Test and Measurement Instrumentation segment, which is conducted through MTI Instruments, Inc., a wholly-owned subsidiary, and the New Energy segment which is conducted through MTI MicroFuel Cells Inc., a variable interest entity. MEDIMEDIA USA: Moody's Junks Corporate Family Rating From 'B3' -------------------------------------------------------------- Moody's Investors Service downgraded MediMedia USA, Inc.'s Corporate Family Rating (CFR) to Caa1 from B3. The Senior Secured Bank Credit Facility was also downgraded to B2 from B1. The Senior Subordinated Notes remain unchanged at Caa2. The outlook is stable. The downgrade reflects the weaker than expected operating performance, high leverage, and a lower than anticipated cash balance. It also reflects the fact that the company is presently in violation of its maximum leverage covenant and is under pressure to pursue a waiver, refinance or extend its facilities which will likely result in higher borrowing costs and lower profits. The stable outlook is based on the belief that they will be able to obtain a waiver and will likely be successful in amending the bank facilities in return for debt reduction with proceeds from the recent sale of the Animal Health division. MediMedia USA, Inc. -- Corporate Family Rating, Downgraded to Caa1 from B3 -- Probability of Default Rating, Downgraded to Caa1 from B3 -- Senior Secured Bank Credit Facility, Downgraded to B2 from B1 -- Senior Subordinated Notes, Unchanged at Caa2 -- Outlook, Unchanged at Stable RATINGS RATIONALE MediMedia's Caa1 Corporate (CFR) reflects concern over its violation of its maintenance covenants under its existing credit agreement following weakness at two of its three divisions, its high leverage (7.1x as of March 31, 2011 using Moody's standard adjustments for lease expenses), negative free cash flow, and potentially weakened competitive position. Its history of acquisitions and sales appears to have caused integration problems for its Pharmaceutical Marketing and Health Management divisions that drove the weak performance. The company's exposure to pharmaceutical spending exposes it to the industry's shifting spending patterns as patents expire on a large number of high profile drugs at a time when it will be trying to rebuild its reputation in the industry. Lack of scale also constrains the rating, particularly given the potential for intensifying competition from larger, better-capitalized companies. In addition, its cash position deteriorated much quicker than anticipated from the 1st to the 2nd quarter of 2011. The sale of its Animal Health division for $114 million (after taxes) which closed in the 3rd quarter provides fresh liquidity, but the need for liquidity given the negative free cash flow is greater than expected. MediMedia's $50 million revolver matures in October 2012 and its term loan matures in October 2013, so extending them is of primary importance in Moody's view. Though following the recent performance weakness, MediMedia will be challenged to extend its maturity profile and will incur higher interest expense and potentially reduced revolver availability. The recent change in the CEO is a step toward rebuilding confidence with investors and customers although it is likely to take several quarters of strong execution. The Health Information division has been a source of stability, despite the transition to digital, and provides a degree of support to the credit. Recent Developments MediMedia recently proposed to its lenders that it be allowed to include $114 million of after tax proceeds from the Animal Health sale in its 2nd quarter compliance tests to cure its covenant violation after reporting weaker than expected earnings. It also requested an increase in its leverage covenants for the life of the loan and an extension of the maturity date of the Revolver and Term Loan. In exchange, the bank debt will be paid down with the proceeds of the asset sale. MediMedia's ratings were assigned by evaluating factors we believe are relevant to the credit profile of the issuer, such as i) the business risk and competitive position of the company versus others within its industry, ii) the capital structure and financial risk of the company, iii) the projected performance of the company over the near to intermediate term, and iv) management's track record and tolerance for risk. These attributes were compared against other issuers both within and outside of MediMedia's core industry and MediMedia's ratings are believed to be comparable to those of other issuers of similar credit risk. Headquartered in Yardley, Pennsylvania, MediMedia USA, Inc. (MediMedia) provides health information and services that inform consumers, physicians, and other healthcare decision makers. Its annual revenue is approximately $300 million. The company is primarily owned by Vestar Capital Partners. MERCANTILE BANCORP: Incurs Roughly $2-Mil. 2nd Quarter Net Loss --------------------------------------------------------------- Mercantile Bancorp, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $1.99 million on $9.13 million of total interest and dividend income for the three months ended June 30, 2011, compared with a net loss of $5.65 million on $11.26 million of total interest and dividend income for the same period during the prior year. The Company also reported a net loss of $1.04 million on $18.59 million of total interest and dividend income for the six months ended June 30, 2011, compared with a net loss of $5.60 million on $22.77 million of total interest and dividend income for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $888.99 million in total assets, $896.02 million in total liabilities and a $7.03 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/wHqx2O About Mercantile Bancorp -- http://www.mercbanx.com/-- is a Quincy, Illinois-based bank holding company with wholly owned subsidiaries consisting of one bank in Illinois and one each in Kansas and Florida, where the Company conducts full-service commercial and consumer banking business, engages in mortgage banking, trust services and asset management, and provides other financial services and products. The Company also operates Mercantile Bank branch offices in Missouri and Indiana. As reported in the TCR on April 26, 2011, BKD, LLP, in Decatur, Illinois, expressed substantial doubt about Mercantile Bancorp's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered recurring losses resulting from the effects of the economic downturn causing its subsidiary banks to be undercapitalized and resulting in consent orders to be issued by their primary regulators. On Aug. 10, 2011, the Illinois Division of Banking released a Consent Order that Mercantile Bank, the Federal Deposit Insurance Corporation, and the Division entered into as of July 28, 2011. Under the Order, Mercantile Bank will cease operating with all money transmitters and currency businesses providing brokerage, sale or exchange of non-United States currency for deposit customers. Furthermore, Mercantile Bank may not enter into a new line of business without the prior written consent of the FDIC and the Division. MERCED FALLS: Case Summary & 4 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Merced Falls Ranch 264 I. Street Los Banos, CA 93635 Bankruptcy Case No.: 11-19212 Chapter 11 Petition Date: August 16, 2011 Court: U.S. Bankruptcy Court Eastern District of California (Fresno) Judge: W. Richard Lee Debtor's Counsel: Riley C. Walter, Esq. WALTER & WILHELM LAW GROUP 205 E. River Park Circle, Suite 410 Fresno, CA 93720 Tel: (559) 435-9800 Estimated Assets: $100,000,001 to $500,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Stephen W. Sloan, member. Debtor's List of four Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Merced County Tax Assessor -- $302,803 T.D.C. Aero Logistics -- $20,300 Shannon Pump Company -- $32,000 Charles Gragnami -- $10,500 MOHEGAN TRIBAL: Reports $28.6-Mil. Net Income in June 30 Quarter ---------------------------------------------------------------- Mohegan Tribal Gaming Authority filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income of $28.66 million on $361.38 million of net revenues for the three months ended June 30, 2011, compared with net income of $10.99 million on $354.08 million of net revenues for the same period during the previous year. The Company also reported net income of $65.88 million on $1.04 billion of net revenues for the nine months ended June 30, 2011, compared with net income of $34.36 million on $1.04 billion of net revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $2.17 billion in total assets, $1.99 billion in total liabilities, and $176.04 million in total capital. "We are extremely pleased with our results for the third quarter," said Mitchell Grossinger Etess, chief executive officer of the Authority. "The growth in Adjusted EBITDA and continued margin improvements at both properties are a direct result of the outstanding efforts by each and every one of our employees." A full-text copy of the Form 10-Q is available for free at: http://is.gd/0m8RgM About Mohegan Tribal Headquartered in Uncasville, Conn., Mohegan Tribal Gaming Authority conducts and regulates gaming activities on Tribal lands, which are federally recognized Indian tribe reservations in southeastern Connecticut. The Authority has noted that its Bank Credit Facility matures on March 9, 2012 and its 2002 Senior Subordinated Notes mature on April 1, 2012. In addition, a substantial portion of the Authority's remaining indebtedness matures over the following three fiscal years. The Authority believes that it will need to refinance all or part of its indebtedness at or prior to each maturity thereof in order to maintain sufficient resources for its operations. The Authority has engaged Blackstone Advisory Partners, L.P. to assist in its strategic planning relating to its debt maturities. * * * At the end of November 2010, Moody's Investors Service downgraded Mohegan Tribal Gaming Authority's Corporate Family and Probability of Default ratings to Caa2 from B3. All of MTGA's rated long-term debt was also lowered. The rating outlook is negative. The ratings downgrade reflects Moody's view that MTGA could find it difficult to refinance significant upcoming debt maturities without some impairment to bondholders given its high leverage -- debt/EBITDA is over 7 times -- limited near-term growth prospects for Mohegan Sun Casino, the likely continuation of weak consumer gaming demand trends in the Northeastern U.S., and the strong possibility of gaming in Massachusetts. The company's $675 million revolver ($527 million outstanding at Sept. 30, 2010) expires in March 2012 and its $250 million 8% senior subordinated notes mature in April 2012. Combined, these debt items account for about 50% of MTGA's total debt outstanding. MTGA has announced that it hired Blackstone Group to help deal with its capital structure issues, although no details have been made available regarding MTGA's options. Given the company's recently announced weak fiscal fourth quarter results along with the significant near- and long-term challenges previously mentioned, Moody's believes a restructuring that involves some impairment to bondholders will be considered. The negative ratings outlook reflects the relatively short time frame in which MTGA has to address what Moody's believes to be a significant capital structure issue. If MTGA is not able to refinance by March 2011 its $675 million revolver will be become current. The same holds true for the company's $250 million 8% senior subordinated notes to the extent these notes are not refinanced by April 1, 2011. MOORE SORRENTO: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Moore Sorrento, LLC 1848 Norwood Plaza, Suite 214 Hurst, TX 76054 Bankruptcy Case No.: 11-44651 Chapter 11 Petition Date: August 17, 2011 Court: U.S. Bankruptcy Court Northern District of Texas (Ft. Worth) Judge: Russell F. Nelms Debtor's Counsel: J. Robert Forshey, Esq. FORSHEY & PROSTOK, LLP 777 Main Street, Suite 1290 Ft. Worth, TX 76102 Tel: (817) 877-8855 E-mail: jrf@forsheyprostok.com - and - Matthew G. Maben, Esq. FORSHEY & PROSTOK, L.L.P. 777 Main Street, Suite 1290 Fort Worth, TX 76102 Tel: (817) 877-8855 Fax: (817) 877-4151 E-mail: mmaben@forsheyprostok.com Estimated Assets: $50,000,001 to $100,000,000 Estimated Debts: $10,000,001 to $50,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Dagmar Solensky, manager of Yellow Road, LLC, manager of Moore Sorrento, LLC. MORGANS HOTEL: Units Ink $135MM Mortgage Loan with Deutsche Bank ---------------------------------------------------------------- Subsidiaries of Morgans Hotel Group Co. entered into a new mortgage financing with Deutsche Bank Trust Company Americas, as a lender, administrative agent, lead arranger and bookrunner, consisting of two mortgage loans, each secured by Hudson and treated as a single loan once disbursed, in these amounts: (1) a $115 million mortgage loan that was funded at closing, and (2) a $20 million delayed draw term loan, which will be available to be drawn over a 15-month period, subject to achieving a debt yield ratio of at least 9.5% after giving effect to each additional draw. The Hudson 2011 Mortgage Loan bears interest at a reserve adjusted blended rate of 30-day LIBOR plus 400 basis points. The Company maintains an interest rate cap for the amount of the Hudson 2011 Mortgage Loan that will cap the LIBOR rate on the debt under the Hudson 2011 Mortgage Loan at approximately 3.0% through the maturity date. The Hudson 2011 Mortgage Loan matures on Aug. 12, 2013. Proceeds from the Hudson 2011 Mortgage Loan, cash on hand and cash held in escrow were applied to (1) repay $201.2 million of outstanding mortgage debt under the prior first mortgage loan secured by Hudson, (2) repay $26.5 million of indebtedness under a mezzanine loan related to Hudson, and (3) pay fees and expenses in connection with the financings, resulting in the retirement of $227.7 million in 2006 Hudson Mortgage Loan and Mezz Loan debt. After repayment of the mortgage debt under the 2006 Hudson Mortgage Loan and the Mezz Loan, each of those facilities was terminated. A full-text copy of the Form 8-K is available for free at: http://is.gd/d3TgMG About Morgans Hotel Group Based in New York, Morgans Hotel Group Co. (Nasdaq: MHGC) -- http://www.morganshotelgroup.com/-- is widely credited as the creator of the first "boutique" hotel and a continuing leader of the hotel industry's boutique sector. Morgans Hotel Group operates and owns, or has an ownership interest in, Morgans, Royalton and Hudson in New York, Delano and Shore Club in South Beach, Mondrian in Los Angeles and South Beach, Clift in San Francisco, Ames in Boston, and Sanderson and St Martins Lane in London. Morgans Hotel Group and an equity partner also own the Hard Rock Hotel & Casino in Las Vegas and related assets. Morgans Hotel Group also manages hotels in Isla Verde, Puerto Rico and Playa del Carmen, Mexico. Morgans Hotel Group has other property transactions in various stages of completion, including projects in SoHo, New York and Palm Springs, California. The Company reported a net loss of $83.64 million on $236.37 million of total revenues for the year ended Dec. 31, 2010, compared with a net loss of $101.60 million on $225.05 million of total revenues during the prior year. The Company's balance sheet at June 30, 2011, showed $604.36 million in total assets, $655.66 million in total liabilities and a $51.29 million total deficit. MRA PELICAN: Sec. 341 Creditors Meeting Set for Sept. 23 -------------------------------------------------------- The United States Trustee in Miami, Florida, will convene a Meeting of Creditors pursuant to 11 U.S.C. Sec. 341(a) in the bankruptcy case of MRA Pelican Pointe Apartments, LLC, on Sept. 23, 2011, at 1:00 p.m. at 299 E Broward Blvd Room 411, in Fort Lauderdale. 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. Deadline to file a Complaint to determine dischargeability of certain debts is Nov. 22, 2011. Proofs of claim are due by Dec. 22, 2011. About MRA Pelican Pointe MRA Pelican Pointe Apartments, LLC, owns an apartment complex commonly known as Whispering Isles Apartments in Pompano Beach, Florida. The property was being managed by Aryeh Kieffer of Boca Raton-based Addison Advisors. Pre-bankruptcy, Fannie Mae initiated a foreclosure action against the property in the Circuit Court of the 17th Judicial Circuit in and for Broward County, Florida. At Fannie Mae's behest, Margaret Smith of Glass Ratner Advisory & Capitol Group LLC was appointed as receiver. The receiver has administered and operated the apartment complex since May 17, 2011. MRA Pelican filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 11-32457) on Aug. 10, 2011. Addison Advisors' Mr. Kieffer signed the petition. Bradley S. Shraiberg, Esq., at Shraiberg, Ferrara, & Landau P.A., serves as the Debtor's bankruptcy counsel. In its schedules, the Debtor listed $12,003,200 in assets and $14,661,009 in debts. Fannie Mae is represented by Gary M. Freedman, Esq., and Mark S. Roher, Esq., at Tabas, Freedman, Soloff, Miller & Brown, P.A. MRA PELICAN: Fannie Mae Challenges Bid to Repossess Apartment ------------------------------------------------------------- MRA Pelican Pointe Apartments LLC is locked in a battle with Fannie Mae over the Debtor's requests to use cash collateral and for turnover of property which is currently in the hands of a receiver. MRA Pelican owns an apartment complex commonly known as Whispering Isles Apartments in Pompano Beach, Florida. The property is encumbered by a mortgage in favor of Fannie Mae. In addition, various creditors may claim a security interest in certain of the Debtor's assets. Pre-bankruptcy, Fannie Mae initiated a foreclosure action against the property in the Circuit Court of the 17th Judicial Circuit in and for Broward County, Florida. At Fannie Mae's behest, Margaret Smith of Glass Ratner Advisory & Capitol Group LLC was appointed as receiver. The receiver has administered and operated the apartment complex since May 17, 2011. In its Statement of Financial Position as of May 31, the receiver indicated that the Debtor had roughly $490,469 in an operating account at Bank of America. The Debtor wants to use cash collateral through Sept. 14, 2011, or until otherwise ordered by the Court, in order to pay employees and fund other necessary operating expenses. The Debtor contends the continued operation of its business will preserve its going concern value, enable it to capitalize on that value through a reorganization strategy, and ultimately facilitates the Debtor's ability to confirm a Chapter 11 plan. The Debtor proposes to provide adequate protection to Fannie Mae by way of a replacement lien on the Debtor's receivables. However, the Debtor said, under no circumstances will Fannie May have a lien on any causes of action arising under Chapter 5 of the Bankruptcy Code, or any of the Debtor's assets that Fannie Mae did not have a right to prepetition. In a separate motion, the Debtor asks the Court to direct the turnover of the property, including the cash. The Debtor said the cash in the BofA account would aid in its reorganization efforts. The Debtor also wants the receiver to file an accounting of any property of the Debtor that came into the receiver's position, custody or control. Fannie Mae opposes the use of its cash collateral should the Debtor take back possession of the Property from the state court- appointed Receiver, but is willing to work out an appropriate cash collateral order should the Receiver stay in custody of the Property. According to Fannie Mae, given the conduct that led to first, the entry of the Rents Sequestration Order providing for the appointment of a monitor to clean up the Debtor's incurring of hundreds of thousands of dollars in code violations and second, the appointment of the Receiver because of the Debtor's wasting of the Property and deliberate cover-up actions, Fannie Mae has a complete lack of confidence in the Debtor and its manager. Fannie Mae said the Receiver will testify and present pictures demonstrating that under the watch of the Debtor and its management the property fell into a level of disrepair and waste including life/safety hazards the level of which she has rarely seen; a mold-induced tree growing up through the floor of an apartment; and standing sewage water in an apartment. There is no way that this Debtor can claim straight-faced that its management of the property is in the best interest of the tenants or creditors. It's not even in the best interest of the Debtor, according to Fannie Mae. Fannie Mae argued that the Debtor has failed propose any periodic payment to Fannie Mae to compensate Fannie Mae for the diminution of the value of the Property while the automatic stay remains in effect. Fannie Mae noted the Cash Collateral Motion makes some vague non-committal reference to "replacement lien". Fannie Mae also asserted that the Debtor has absolutely no assets free of Fannie Mae's lien that could possibly serve as replacement collateral. Schedule "A" of the Debtor's bankruptcy petition lists the current value of the Property at $12,000,000 with Fannie Mae's secured claim listed on Schedule "D" at $11,677,000. Fannie Mae said the Scheduled Amount only represents the principal loan balance due and owing by the Debtor as of April 1, 2010 and does not include: (i) interest; (ii) attorneys' fees' (iii) court costs; (iv) late fees; (v) amounts advanced; and (vi) all other sums due and payable under the loan documents. Fannie Mae said its claim as of the Petition Date is roughly $14,000,000. Fannie Mae said it is willing to allow the Receiver to continue to use its cash collateral post-petition to make the necessary payments for the expenses associated with the maintenance and preservation of the Property and is willing to accept as an initial adequate protection payment, the $490,000 that is currently held in the Receiver's account for which the funds represent Fannie Mae's collateral. Fannie Mae also pointed out that it does not want to be in Bankruptcy Court. It has no desire to "pay to play." Because Fannie Mae is unsecured, there is absolutely nothing in the Debtor's case for unsecured creditors unless the Debtor's principals provide new value. If they are willing to do so, they ought to start now, Fannie Mae said. About MRA Pelican Pointe MRA Pelican Pointe Apartments, LLC, owns an apartment complex commonly known as Whispering Isles Apartments in Pompano Beach, Florida. The property was being managed by Aryeh Kieffer of Boca Raton-based Addison Advisors. MRA Pelican filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 11-32457) on Aug. 10, 2011. Addison Advisors' Mr. Kieffer signed the petition. Bradley S. Shraiberg, Esq., at Shraiberg, Ferrara, & Landau P.A., serves as the Debtor's bankruptcy counsel. In its schedules, the Debtor listed $12,003,200 in assets and $14,661,009 in debts. Fannie Mae is represented by Gary M. Freedman, Esq., and Mark S. Roher, Esq., at Tabas, Freedman, Soloff, Miller & Brown, P.A., which may be reached at: Gary M. Freedman, Esq. Mark S. Roher, Esq. TABAS, FREEDMAN, SOLOFF, MILLER & BROWN, P.A. 14 Northeast First Avenue, Penthouse Miami, FL 33132 Telephone: (305) 375-8171 Facsimile: (305) 381-7708 E-mail: gary@tabasfreedman.com mroher@tabasfreedman.com MRA PELICAN: Hiring Shraiberg Ferrara as Bankruptcy Counsel ----------------------------------------------------------- MRA Pelican Pointe Apartments, LLC, seeks Bankruptcy Court permission to employ Shraiberg Ferrara & Landau P.A. as Chapter 11 counsel. SFL will be paid at these rates: Attorneys $250 - 425 per hour Legal assistants $110 per hour Bradley S. Shraiberg, Esq. $425 per hour Prior to the Petition Date, 3611 Joint Venture LLC paid SFL a $15,000 retainer and 247 West 38th Realty Corp. paid SFL a $20,000 retainer. An insider of the Debtor controls 3611 Joint Venture and 247 West. The retainer letter governing the firm's engagement provides that a person or entity will provide SFL with an additional payment of $7,000 on behalf of the Debtor within 30 days and $8,000 within 60 days. Mr. Shraiberg, a partner at SFL, attests that his firm does not represent any interest adverse to the Debtor, its estates or its creditors. About MRA Pelican Pointe MRA Pelican Pointe Apartments, LLC, owns an apartment complex commonly known as Whispering Isles Apartments in Pompano Beach, Florida. The property was being managed by Aryeh Kieffer of Boca Raton-based Addison Advisors. Pre-bankruptcy, Fannie Mae initiated a foreclosure action against the property in the Circuit Court of the 17th Judicial Circuit in and for Broward County, Florida. At Fannie Mae's behest, Margaret Smith of Glass Ratner Advisory & Capitol Group LLC was appointed as receiver. The receiver has administered and operated the apartment complex since May 17, 2011. MRA Pelican filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 11-32457) on Aug. 10, 2011. Addison Advisors' Mr. Kieffer signed the petition. The Debtor's bankruptcy counsel is: Bradley S. Shraiberg, Esq. SHRAIBERG, FERRARA, & LANDAU P.A. 2385 NW Executive Center Drive, #300 Boca Raton, FL 33431 Tel: (561) 443-0801 Fax: (561) 998-0047 E-mail: bshraiberg@sfl-pa.com In its schedules, the Debtor listed $12,003,200 in assets and $14,661,009 in debts. Fannie Mae is represented by Gary M. Freedman, Esq., and Mark S. Roher, Esq., at Tabas, Freedman, Soloff, Miller & Brown, P.A. MUNICIPAL MORTGAGE: Incurs $12.6-Mil. Net Loss in Second Quarter ---------------------------------------------------------------- Municipal Mortgage & Equity, LLC, filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $12.59 million on $20.07 million of total interest income for the three months ended June 30, 2011, compared with a net loss of $30.90 million on $23.18 million of total interest income for the same period a year ago. The Company also reported a net loss of $29.11 million on $41.93 million of total interest income for the six months ended June 30, 2011, compared with a net loss of $52.30 million on $46.45 million of total interest income for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $1.94 billion in total assets, $1.24 billion in total liabilities and $702.63 million in total equity. The Company's ability to restructure its debt is especially important with respect to its subordinated debentures. The weighted average pay rate on $196.7 million of subordinated debentures was 2.08% at June 30, 2011. The Company's pay rates are due to increase in the first and second quarters of 2012, which will bring the weighted average pay rate to approximately 8.6%. The Company does not currently have the liquidity to meet these increased payments. In addition, substantially all of the Company's assets are encumbered, which limits its ability to increase its liquidity by selling assets or incurring additional indebtedness. There is also uncertainty related to the Company's ability to liquidate non-bond related assets at sufficient amounts to satisfy associated debt and other obligations and there are a number of business risks surrounding the Company's bond investing activities that could impact the Company's ability to generate sufficient cash flow from the bond portfolio. In the event management is not successful in restructuring or settling its remaining non-bond related debt, or in generating liquidity from the sale of non-bond related assets, or if the bond portfolio net interest income and the common equity distributions the Company receives from its subsidiaries are substantially reduced, the Company may have to consider seeking relief through a bankruptcy filing. Collectively, these factors raise substantial doubt about the Company's ability to continue as a going concern. As reported by the TCR on April 6, 2011, KPMG LLP, in Baltimore, Maryland, expressed substantial doubt about Municipal Mortgage & Equity's ability to continue as a going concern. The independent auditors noted that the Company has been negatively impacted by the deterioration of the capital markets and has liquidity issues which have resulted in the Company having to sell assets, liquidate collateral positions, post additional collateral, sell or close different business segments and work with its creditors to restructure or extend its debt arrangements. Municipal Mortgage reported a net loss of $72.5 million on $107.7 million of total revenue for 2010, compared with a net loss of $380.1 million on $134.8 million of total revenue for 2009. A full-text copy of the Form 10-Q is available for free at: http://is.gd/zEhZYo About Municipal Mortgage Baltimore, Md.-based Municipal Mortgage & Equity, LLC (Pink Sheets: MMAB) -- http://www.munimae.com/-- was organized in 1996 as a Delaware limited liability company and is classified as a partnership for federal income tax purposes. When the Company became a publicly traded company in 1996, it was primarily engaged in originating, investing in and servicing tax- exempt mortgage revenue bonds issued by state and local government authorities to finance affordable multifamily housing developments. Since then, the Company made several acquisitions that significantly expanded its business. However, in 2008, due to the financial crisis, the Company began contracting its business. The Company has sold, liquidated or closed down all of its different businesses except for its bond investing activities and certain assets and residual interests related to the businesses and assets that the Company sold due to its liquidity issues. The Company has a majority position in International Housing Solutions S.a.r.l., a partnership that was formed to promote and invest in affordable housing in overseas markets. In addition, at Dec. 31, 2010, the Company has an unfunded equity commitment of $5.1 million, or 2.67% of total committed capital with respect to its role as the general partner to the South Africa Workforce Housing Fund SA I ("SA Fund"). The SA Fund was formed to invest directly or indirectly in housing development projects and housing sector companies in South Africa. A portion of the funding of SA Fund is participating debt provided by the United States Overseas Private Investment Corporation, a federal government entity, and the remainder is equity primarily invested by institutional and large private investors. The Company expects to continue this business. NCO GROUP: Incurs $32.3 Million Net Loss in Second Quarter ---------------------------------------------------------- NCO Group, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $32.30 million on $373.86 million of total revenues for the three months ended June 30, 2011, compared with a net loss of $25.32 million on $401.04 million of total revenues for the same period a year ago. The Company also reported a net loss of $75.60 million on $748.58 million of total revenues for the six months ended June 30, 2011, compared with a net loss of $39.65 million on $824.61 million of total revenues for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $1.18 billion in total assets, $1.16 billion in total liabilities and $15.11 million in total stockholders' equity. Commenting on the results, Ronald A. Rittenmeyer, president and chief executive officer, stated, "While our revenue results were lower than 2010, driven in large part by the continued changes in economic conditions, we continued to effectively manage EBITDA as a result of tight controls throughout the organization. We continue to see positive sales activity and are placing greater emphasis on quality of deals going forward." A full-text copy of the Form 10-Q is available for free at: http://is.gd/m6xtls About NCO Group Inc. Based in Horsham, Pennsylvania, NCO is a global provider of business process outsourcing services, primarily focused on accounts receivable management and customer relationship management. NCO has over 25,000 full and part-time employees who provide services through a global network of over 100 offices. The company is a portfolio company of One Equity Partners and reported revenues of about $1.2 billion for the twelve month period ended Sept. 30, 2007. The Company reported a net loss of $155.71 million on $1.60 billion of revenue for the year ended Dec. 31, 2010, compared with a net loss of $88.14 million on $1.58 billion of revenue during the prior year. * * * As reported by the Troubled Company Reporter on Feb. 2, 2011, Moody's Investors Service downgraded NCO Group, Inc.'s CFR to Caa1 from B3 and changed the outlook to negative. Simultaneously, Moody's has also downgraded each of NCO's debt instrument ratings by one notch and lower the Speculative Grade Liquidity rating to SGL-4 from SGL3. The downgrade reflects Moody's concern that greater than expected revenue declines and continued earnings pressure will extend beyond current levels due to deteriorating consumer payment patterns and weaker volumes. In addition, Moody's expects financial flexibility will be further aggravated by tightening headroom under its financial covenants and a potential breach of covenants which will limit the company's ability to draw upon its revolver. Also, the company faces an impending maturity on its $100 million senior secured revolving credit facility due November of 2011. NEBRASKA BOOK: NBC Posts $23.7 Million Net Loss in June 30 Quarter ------------------------------------------------------------------ NBC Acquisition Corp. filed its quarterly report on Form 10-Q, reporting a net loss of $23.7 million on $69.6 million of revenues for the quarter ended June 30, 2011, compared with a net loss of $12.7 million on $72.4 million of revenues for the quarter ended June 30, 2010. Consolidated earnings before interest, taxes, depreciation, amortization and reorganization items ("Adjusted EBITDA") was a loss of $10.7 million for the quarter ended June 30, 2011, an increase of $5.5 million from the quarter ended June 30, 2010. The increase in the Adjusted EBITDA loss was primarily due to higher selling, general and administrative expenses due to a $4.6 million increase in professional fees related to reorganization costs prior to filing Chapter 11 and due to lower revenues. The Company believes Adjusted EBITDA is useful in evaluating the Company's results and provides additional information for determining the Company's ability to meet debt service requirements. The Company's balance sheet at June 30, 2011, showed $612.2 million in total assets, $675.3 million in total liabilities, $14.1 million in Series A redeemable preferred stock, and a stockholders' deficit of $77.2 million. As of June 30, 2011, the Company had $124.4 million in cash available to help fund working capital requirements. Cash and cash equivalents at March 31, 2011, were $56.4 million at March 31, 2011. Proposed Plan of Reorganization On July 17, 2011, the Company filed with the Court a disclosure statement and a proposed plan of reorganization. The Plan does not provide for any recovery to holders of the Company's existing equity securities. The ultimate recovery to creditors or shareholders, if any, will not be determined until confirmation of a plan of reorganization. A hearing to consider the Plan is currently scheduled for Oct. 4, 2011. A copy of the Form 10-Q is available at http://is.gd/nzQ81y 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. NEDAK ETHANOL: Incurs $2.3 Million Net Loss in Second Quarter ------------------------------------------------------------- Nedak Ethanol, LLC, filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $2.28 million on $36.97 million of revenue for the three months ended June 30, 2011, compared with a net loss of $3.21 million on $21.44 million of revenue for the same period during the prior year. The Company also reported a net loss of $2.03 million on $72.06 million of revenue for the six months ended June 30, 2011, compared with a net loss of $1.49 million on $42.37 million of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $85.44 million in total assets, $53.94 million in total liabilities, all current, and $31.50 million in total members' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/JVSkK6 About NEDAK Ethanol Atkinson, Neb.-based NEDAK Ethanol, LLC -- http://www.nedakethanol.com/-- operates a 44 million gallon per year ethanol plant in Atkinson, Nebraska, and produces and sells fuel ethanol and distillers grains, a co-product of the ethanol production process. Sales of ethanol and distillers grains began in January 2009. The Company reported a net loss of $2.08 million on $94.77 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $9.23 million on $67.53 million of revenue during the prior year. As reported by the TCR on April 7, 2011, McGladrey & Pullen, LLP, in Sioux Falls, South Dakota, 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 there is uncertainty as to the Company's ability to cure credit agreement defaults and, therefore, to secure additional funds needed to fund ongoing operations. NEW JERSEY ECONOMIC: Moody's Maintains 'Ba2' Rating on Bonds ------------------------------------------------------------ Moody's Investors Service maintains a Ba2 rating on the Kapkowski Road Landfill Reclamation Improvement District Project Bonds. RATING RATIONALE The Ba2 rating and stable outlook reflect the healthy and growing cash flow from the Jersey Mall Gardens Mall, whose payment-in- lieu-of-tax (PILOT) payments secure the bonds; relatively diverse and stable retail tenants and a good location adjacent to the New Jersey Turnpike and Newark-Liberty International Airport near densely populated areas. The Jersey Gardens Mall is owned by Elizabeth Metromall LLC a subsidiary of Glimcher Realty Trust (preferred stock rated B2). The bonds lack a debt reserve fund (DSRF) and instead have a weak external liquidity support agreement intended to provide timely payment of debt service. STRENGTHS: * Prime location with access to transportation and diverse tenants. Mall is the only value mega-mall in northern New Jersey offering a combination factory outlet and retail stores * Current mall occupancy relative to square footage is high at 99.9% (up from 96.6% in 2010) and total mall sales per square foot of $422 (up from $415 in 2010) are strong * The PILOT payments assessed by the City of Elizabeth (rated A1) cannot be repealed. Failure to pay PILOTs results in a fixed annual property lien on the mall that is not subject to reduction in bankruptcy * A PILOT payment shortfall if not remedied could result in foreclosure of the mall * Mall has strong and growing cash flow and net income, with approximately 3x net income coverage of annual PILOT payments CHALLENGES * Lack of a Debt Service Reserve Fund and weak external liquidity support to ensure timely payment of debt service payments * Weak economy and retail sector could trigger tenant bankruptcies that could diminish mall cash flow for PILOT payments * Potential for increased retail competition in the service area * No mortgage interest in the property for bondholders * Rate covenant is only sum sufficient and investor protections are generally weaker than for comparable projects SECURITY: PILOT payments made by the Jersey Gardens Mall owner in Elizabeth. PILOTs are collected quarterly and paid directly to the bond trustee through assignment by the City of Elizabeth. The Landfill Improvement Act of New Jersey provides for imposition of a special assessment as a back-up taxing mechanism to the lien of PILOT payments. The city's assessment ordinance prescribes the lien on the special assessment as $180 million and requires it to be pay so long as the bonds are outstanding, or 30 years, whichever is less. There is no mortgage interest in the property for bond holders. Rate Covenant: One times debt service coverage by PILOT payments. Reserve Requirement: There is no debt service reserve fund. There is an advancing agreement (expires April 1, 2031 or date on which all bonds repaid) between Midland Loan Services and the trustee, to support timely debt service payments in the event of a cash flow interruption and delay in PILOT payments. Per the advancing agreement, if the trustee does not receive the full PILOT payment when due, then Midland Loan Services, as Standby Liquidity Provider will be notified the day after the due date for each PILOT payment and will be required to remit the delinquency by the last business day prior to the respective debt service due dates on April 1 and October 1. In Moody's opinion , a critical weakness in the support agreement is that the requirement to remit the PILOT shortfall is subject to a bank officer's reasonable judgment of ultimate loan recovery. Therefore, it is conceivable that the agreement would not cover all debt service shortfalls under circumstances subject to the bank officer's judgment. The lack of a debt service reserve fund and the requirement of only sum sufficient debt service coverage from PILOT payments effectively results in zero liquidity should Midland Loan Services opt to withhold funding of PILOT shortfalls. RECENT DEVELOPMENTS: The mall's two floors of retail and theater space house 12 anchor tenants that provide a mix of retailer and manufacturer outlets, discount and off-price stores, restaurants and entertainment. Since the mall's opening in 1999, occupancy has increased to approximately 99.9% in 2011 from 91% in 2001. Current anchor tenants include Bed Bath & Beyond; Burlington Coat Factory; Cohoes Fashions; Daffy's; The Gap Outlet; Marshall's as well as Loew's Theaters. No single tenant accounts for more than 10% of mall rental income. While there have been some tenant bankruptcies all tenants are reportedly current on their rents. The 2011 mall occupancy levels relative to square footage are high and sales per square foot of $422 are strong and up from $415 in 2010. Mall cashflow yields annual net revenues that are more than double the annual PILOT payments after debt service is paid and triple the annual PILOT payment, further underscoring Moody's expectation that Glimcher has strong motivation to make its quarterly PILOT payment to the bond trustee. No major capital improvement or expansions are currently planned and only normal capital expenditures to maintain the property are expected. The most recent property appraisal was $288 million in 2004 and net book value was $178.7 million as of June 30, 2010, compared to the $10.55 million annual PILOT payments and $150 million of outstanding debt. BACKGROUND: The outstanding Series 1998B and 2002 bonds financed transportation infrastructure and environmental remediation of a landfill site that was converted to the Jersey Gardens Mall - a two level value-oriented retail and entertainment megamall with approximately 1.3 million square feet of gross leasable area located in Elizabeth (rated A1 stable outlook). The PILOTs were approved in 1998 by the City of Elizabeth and the New Jersey Metromall Urban Renewal Inc.(NJ Urban Renewal) - a subsidiary of Glimcher Realty Trust- who is legally required to pay the PILOT payments. JG Elizabeth, LLC (the Company) was formed on June 9, 2004 for the purpose of operating and holding the mall property for long-term investment. The company is a wholly-owned subsidiary of Glimcher Properties Limited Partnership (GPLP). The company owes quarterly PILOT payments to NJ Urban Renewal. GPLP has made the payments directly to the City of Elizabeth on behalf of on behalf of the company and NJ Urban Renewal. The PILOT payments will terminate on the date of the maturity of the bonds in 2031. The amount of the annual PILOT payments increases 10.0% every five years until the final payment is made. The payment for 2010 is $10.55 million. There is insurance on the facility, coupled with legal covenants to rebuild the facility in almost all cases in case of a disaster; however, there are three situations in which insurance proceeds may not be available for rebuilding: 1. if a casualty occurs after a monetary event of default on the existing or future mall mortgage; 2. if a future mortgage has been foreclosed upon; or, 3. if rebuilding of the of the project after a casualty cannot be completed prior to the maturity date of the existing mortgage PILOT payments agreed to in 1998 by the City of Elizabeth and Glimcher provide satisfactory coverage for the debt given that PILOTs cannot be appealed, the par value of the liens generally cannot be reduced in the case of a bankruptcy, and the property cannot be divided for resale until final debt maturity. If there is a shortfall of PILOT payments the payments cannot not be accelerated. Rather, the PILOT will be subject to a municipal lien annually - to be collected prior to the next bond year - at the agreed upon amount. If the payment is not made in full, the land will then be subject to a tax lien sale on April 1st of the year following the arrearage in accordance with a statutory procedure enabling Elizabeth, on behalf of the trustee, to hold a tax lien certificate sale. The purchase price at auction of the tax lien must be at least par plus statutory accrued interest. The holder of the auctioned tax lien may then later foreclose on the property if the tax lien certificate is not paid within the statutory period. Outlook The rating outlook is stable. What Could Change the Rating - UP Addition of a DSRF or other structural supports or enhanced liquidity support could result in positive rating pressure. What Could Change the Rating - DOWN Sustained depressed retail sales; increasing tenant bankruptcies or a sharp decline in the value of the mall asset could place negative pressure on the rating. KEY INDICATORS Security: PILOT payments on New Jersey Gardens Mall Debt Service Coverage, 2010: 1x PILOT Debt Service Paid, 2010: $8.163 million Final Maturity: 4/1/31 Mall Occupancy: 99.9% (as of 2011) Debt Outstanding: $150 million ISSUER CONTACT: Richard Burkhardt Director of Treasury, Glimcher Realty Trust 614-887-5889 The last rating action on these bonds was on September 29, 2010 when Moody's downgraded the rating to Ba2 from Baa3. Bond ratings were assigned by evaluating factors believed to be relevant to the credit profile of the issuer such as i) the business risk and competitive position of the issuer versus others within its industry or sector, ii) the capital structure and financial risk of the issuer, iii) the projected performance of the issuer over the near to intermediate term, iv) the issuer's history of achieving consistent operating performance and meeting budget or financial plan goals, v) the nature of the dedicated revenue stream pledged to the bonds, vi) the debt service coverage provided by such revenue stream, vii) the legal structure that documents the revenue stream and the source of payment, and viii) and the issuer's management and governance structure related to payment. NEWPAGE CORP: Incurs $132MM Q2 Net Loss, Warns of Bankruptcy ------------------------------------------------------------ NewPage Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $132 million on $888 million of net sales for the second quarter ended June 30, 2011, compared with a net loss of $174 million on $890 million of net sales for the same period a year ago. The Company also reported a net loss of $220 million on $1.79 billion of net sales for the first half ended June 30, 2011, compared with a net loss of $349 million on $1.70 billion of net sales for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $3.36 billion in total assets, $4.24 billion in total liabilities and a $879 million total deficit. "During the quarter, we were able to realize improved pricing even as we experienced inflationary pressure and some softening in demand for our core products," said George F. Martin, president and chief executive officer for NewPage. As of June 30, 2011, the Company's current liabilities exceeded its current assets by $2,502 million. This deficit results from the classification of the Company's First-Lien Notes, the Company's Second-Lien Notes, and the Company's revolving credit facility as current liabilities. The Company has retained advisors to assist it in exploring various restructuring alternatives and is engaged in discussions with various stakeholders to address its ongoing capital needs. The Company cannot assure that it will be able to refinance any of its indebtedness, or that it will be able to do so on commercially reasonable terms. If the Company is unable to refinance its debt or generate sufficient cash flow to service its obligations, the Company will be required to seek to restructure its existing debt or to voluntarily seek, or be forced to seek, protection under the Chapter 11 of the U.S. Bankruptcy Code and applicable Canadian laws. A full-text copy of the Form 10-Q is available for free at: http://is.gd/puY6er Potential Chapter 11 Eileen M. Adams, staff writer at Sun Journal, reports that local officials are expressing concern about the NewPage paper company's announcement hat it may be forced to file for Chapter 11 protection if it can't refinance its debt or generate sufficient cash flow. According to the report, Ron Hemingway, recording secretary for Local 900 of the United Steelworkers, said a corporate spokesperson told the union about a month ago that a Chapter 11 filing was a possibility. The report says Rumford Town Manager Carlo Puiia said that he has tried to contact mill management to discuss the financial situation but has so far been unsuccessful. NewPage, which is owned by the private equity investment firm Cerberus, said in its second quarter financial report that it has retained advisers to explore restructuring alternatives and is in discussions with various stakeholders to address capital needs. 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. * * * NewPage has 'Caa1' long term corporate family and probability of default ratings from Moody's. As reported by the TCR on Aug. 17, 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." NOMOTO INVESTMENTS: Case Summary & Largest Unsecured Creditor ------------------------------------------------------------- Debtor: Nomoto Investments, LLC 110 N. Doheny Drive Beverly Hills, CA 90211 Bankruptcy Case No.: 11-44542 Chapter 11 Petition Date: August 14, 2011 Court: United States Bankruptcy Court Central District of California (Los Angeles) Debtor's Counsel: M. Douglas Flahaut, Esq. ARENT FOX, LLP 555 W Fifth St., 48th fl Los Angeles, CA 90013 Tel: (213) 443-7559 Fax: (213) 629-7401 E-mail: flahaut.douglas@arentfox.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 In its list of 20 largest unsecured creditors, the Company placed only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Rabobank, N.A. Deficiency $10,500,000 5151 Stockdale Highway Bakersfield, CA 93309 The petition was signed by Molse Tishbi, managing member. NPS PHARMACEUTICALS: Amends Amgen Pact, To Retire Series B Notes ---------------------------------------------------------------- NPS Pharmaceuticals, Inc., announced that it intends to retire the 15.5% Secured Class B Notes when they become redeemable at par value on Sept. 30, 2011. The company also announced that it has entered into an agreement with Amgen Inc. that becomes effective after the retirement of the Class B Notes. Under the Amgen agreement, Amgen will advance $145 million of Sensipar/Mimpara royalties to NPS. After the repayment of the royalty advance and a 9 percent per annum discount factor on the balance of the advance, Amgen will resume paying royalties to NPS. The repayment of the royalty advance and discount will be satisfied solely by Amgen's withholding of royalties and except in the event of default, NPS will have no obligation to repay any unsettled amount. "We're pleased to extend our longstanding relationship with Amgen in a way that benefits both companies," said Luke Beshar, senior vice president and chief financial officer of NPS Pharmaceuticals. "We expect this transaction to save NPS approximately $13 million in interest expense over the next two years. This is another example of generating capital in a way that is in the best interest of our shareholders as we prepare to commercialize our two late-stage product candidates, GATTEX and NPSP558." The Class B Notes originated in August 2007 through a private placement. The Class B Notes are non-recourse to NPS and solely secured and serviced by the Company's revenues related to Sensipar and Mimpara. NPS will retire the Class B Notes utilizing existing NPS resources. A full-text copy of the Fourth Amendment to Development and License Agreement is available for free at http://is.gd/ZGAJnG About NPS Pharmaceuticals Based in Bedminster, New Jersey, NPS Pharmaceuticals Inc. (Nasdaq: NPSP) -- http://www.npsp.com/-- is developing new treatment options for patients with rare gastrointestinal and endocrine disorders. The Company reported a consolidated net loss of $31.44 million on $89.41 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $17.86 million on $84.15 million of total revenue during the prior year. NPS noted in its Form 10-K for the year ended Dec. 31, 2009, it has not been profitable since its inception in 1986. As of Dec. 31, 2009, it had an accumulated deficit of $922.7 million. "Currently, we are not a self-sustaining business and certain economic, operational and strategic factors may require us to secure additional funds." The Company though believes its existing capital resources at Dec. 31, 2009, along with the receipt of $38.4 million from the sale of its REGPARA royalty stream, should be sufficient to fund its current and planned operations through at least Jan. 1, 2011. The Company's balance sheet at June 30, 2011, showed $253.27 million in total assets, $280.58 million in total liabilities, and a $27.31 million total stockholders' deficit. NUMOBILE INC: Incurs $434,000 Net Loss in Second Quarter -------------------------------------------------------- Numobile, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $434,450 on $61,850 of revenue for the three months ended June 30, 2011, compared with a net loss of $803,383 on $185,104 of revenue for the same period a year ago. The Company also reported a net loss of $1.18 million on $118,243 of revenue for the six months ended June 30, 2011, compared with a net loss of $2.02 million on $273,944 of revenue for the same period during the previous year. The Company's balance sheet at June 30, 2011, showed $3.31 million in total assets, $9.05 million in total liabilities, all current, and a $5.74 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/lyG0xR About Numobile Inc. Louisville, Ky.-based NuMobile, Inc. (OTC BB: NUBL) currently conducts its operations through its subsidiaries Enhance Network Communications, Inc. and Stonewall Networks, Inc. Enhance provides a wide variety of services from infrastructure architect to software as a service supplier. Stonewall Networks has built the Cornerstone Security Policy Manager. Cornerstone, a centralized IT security policy manager, is an engine for security policy modeling, implementation, monitoring, enforcement, and auditing. The Company reported a net loss of $2.99 million on $403,331 of revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.50 million on $177,815 of revenue during the prior year. As reported by the TCR on April 7, 2011, Gruber and Company, LLC, in Lake St. Louis, Missouri, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred a net loss of $2.99 million, used cash for operations of $564,669 for the year ended Dec. 31, 2010, has an accumulated deficit of $12.34 million as of Dec. 31, 2010 and has a working capital deficit of $9.29 million as of Dec. 31, 2010. NURSERYMEN'S EXCHANGE: Court OKs Epiq as Committee's Info Agent --------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of California authorized the Official Committee of Unsecured Creditors in the Chapter 11 case of Nurserymen's Exchange, Inc., to retain Epiq Bankruptcy Solutions, LLC, as information agent as of June 21, 2011. The professional services Epiq will provide as the Committee's information agent include: (a) creating and maintaining a Web site with general case information provided by the Committee, key documents, claim search function, and mirror of ECF case docket; (b) providing links to the Debtor's Web site, the Bankruptcy Court for the Northern District of California, and the Office of the United States Trustee; (c) providing contact information for the Debtor's and Committee's professionals; (d) maintaining an electronic inquiry form for creditors to submit questions and comments; and (e) providing other claims, noticing, balloting, and related administrative services as may be requested from time to time. Epiq's primary responsibility will be creating and maintaining a Web site of case information. For this task, Epiq will receive a Web site hosting fee of $200 per month, plus hourly rates ranging from $36 to $265 for related services performed by its professionals. About Nurserymen's Exchange Founded in 1941 as a San Francisco bulb brokerage business, and currently based in Half Moon Bay in the San Francisco Bay Area, Nurserymen's Exchange Inc. is a producer, broker and wholesaler of home decor products incorporating indoor blooming plants, specialty foliage, holiday grow kits, and potted edibles. Nurserymen's Exchange filed a Chapter 11 petition (Bankr. N.D. Calif. Case No. 11-31985) in San Francisco, California, on May 23, 2011. Stephen D. Finestone, Esq., in San Francisco, serves as counsel to the Debtor. Omni Management Group, LLC, is the claims and notice agent. C&A, Inc., serves as financial advisor. The Debtor disclosed $34,755,036 in assets and $24,772,945 in liabilities in its schedules. An official committee of unsecured creditors has been appointed in the case. The panel has tapped lawyers at Landau Gottfried & Berger LLP as counsel. Katten Muchin & Rosenmann, LLP, as its special counsel. Chelliah & Associates as its restructuring and turnaround consultants and advisors. FocalPoint Securities, LLC, as investment banker and financial advisor. Calegari & Morri as accountant. The Abernathy MacGregor Group, Inc., as its corporate communications consultant. O&G LEASING: Court Approves Summit Group as Financial Advisor ------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Mississippi authorized O&G Leasing LLC and Performance Drilling Company, LLC, to employ Summit Group Partners as financial advisor. SGP's principal, Kevin Lombardo, was previously associated with General Capital Partners, which was previously employed by order of the Court as the Debtors' financial advisors. Mr. Lombardo was at all times the Debtors' primary contact and, essentially, the only person with General Capital Partners providing services and advice to the Debtors. Mr. Lombardo is no longer with GCP, and is now employed as a principal at SGP. Because of this relationship with Mr. Lombardo and his departure from GCP, the Debtors terminated their relationship pursuant to the terms of their contract. The Debtors seek to continue Mr. Lombardo's services, albeit on different terms. Mr. Lombardo is expected to provide the Debtors with most of the services expected from SGP, and has agreed to perform these services. SGP will seek compensation at the hourly rate of $250.00 per hour. Jackson, Mississippi-based O&G Leasing, LLC, filed for Chapter 11 bankruptcy protection on May 21, 2010 (Bankr. S.D. Miss. Case No. 10-01851). Douglas C. Noble, Esq., at McCraney Montagnet & Quin, PLLC, assists the Company in its restructuring effort. The Company estimated $10 million to $50 million in assets and $50 million to $100 million in liabilities. O'FALLON HOSPITALITY: Case Summary & 20 Largest Unsec Creditors --------------------------------------------------------------- Debtor: O'Fallon Hospitality, Inc. dba Holiday Inn Express Hotel & Suites c/o Maluk Dhami, President 1986 Bridget Marie Drive Modesto, CA 95351 Bankruptcy Case No.: 11-20328 Chapter 11 Petition Date: August 16, 2011 Court: United States Bankruptcy Court Eastern District of Missouri (Hannibal) Debtor's Counsel: Harry D. Boul, Esq. One E. Broadway, Ste. B Columbia, MO 65203 Tel: (573) 443-7000 E-mail: hboul@earthlink.net Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/moeb11-20328.pdf The petition was signed by Maluk Dhami, president. OCEAN PLACE: Has Access to AFP's Cash Collateral Until Oct. 18 -------------------------------------------------------------- The Hon. Michael B. Kaplan of the U.S. Bankruptcy Court for the District of New Jersey authorized, on a final basis, Ocean Place Development LLC, to use the cash collateral of AFP 104 Corp., until Oct. 18, 2011. The Debtor would use the cash collateral to pay ordinary and reasonable operating expenses. As adequate protection for any diminution in value of the lenders' collateral, the Debtors will grant AFP a replacement lien in the Debtor's postpetition property and proceeds thereof, and a superpriority administrative claims status. The Debtor will also make interest payments to AFP at a non- default contract rate. About Ocean Place Development Ocean Place Development owns the Ocean Place Resort & Spa, a resort property is located on the Atlantic beachfront in Long Branch, New Jersey, just 55 miles south of New York City and 82 miles north of Atlantic City. The existing resort is sited on 17-acres featuring approximately 1,000 feet of ocean frontage and is improved with a 254-room hotel that includes 40,000 square feet of meeting space, three restaurants, a bar/lounge, a full-service spa, and numerous resort amenities. Ocean Place Development is wholly owned by Tiburon Ocean Place LLC. West Paces Hotel Group LLC is the resort's managing agent. The number of people employed full time at the Debtor's property ranges, depending on the season, between approximately 95 and 340. Ocean Place Development filed for Chapter 11 protection (Bankr. D. N.J. Case No. 11-14295) on Feb. 15, 2011. Judge Michael B. Kaplan presides over the case. In its petition, the Debtor estimated $50 million to $100 million in both assets and debts. OPTIMUMBANK HOLDINGS: Incurs $1.9 Million Second Quarter Net Loss ----------------------------------------------------------------- OptimumBank Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $1.97 million on $1.71 million of total interest income for the three months ended June 30, 2011, compared with a net loss of $2.12 million on $2.10 million of total interest income for the same period a year ago. The Company also reported a net loss of $3.12 million on $3.54 million of total interest income for the six months ended June 30, 2011, compared with a net loss of $5.23 million on $4.94 million of total interest income for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $176.15 million in total assets, $177.32 million in total liabilities, and a $1.16 million total stockholders' deficit. The Company reported a net loss of $8.45 million on $8.78 million of total interest income for the year ended Dec. 31, 2010, compared with a net loss of $11.48 million on $14.00 million of total interest income during the prior year. The Company's continuing high levels of nonperforming assets, declining net interest margin, continuing high levels of noninterest expenses related to the credit problems, and eroding regulatory capital raise substantial doubt about the Company's ability to continue as a going concern. Moreover, as reported by the TCR on April 20, 2011, Hacker, Johnson & Smith PA, in Fort Lauderdale, Florida, noted that the Company's operating and capital requirements, along with recurring losses raise 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/XDnXM9 About OptimumBank Holdings Fort Lauderdale, Fla.-based OptimumBank Holdings, Inc. is a is a one-bank holding company and owns 100% of OptimumBank, a state (Florida)-chartered commercial bank. The Bank offers a variety of community banking services to individual and corporate customers through its three banking offices located in Broward County, Florida. The Bank's wholly-owned subsidiaries are OB Real Estate Management, LLC, OB Real Estate Holdings, LLC, OB Real Estate Holdings 1503, LLC, and OB Real Estate Holdings 1695, LLC, all of which were formed in 2009. OB Real Estate Management, LLC, is primarily engaged in managing foreclosed real estate. OB Real Estate Holdings, LLC, OB Real Estate Holdings 1503, LLC, and OB Real Estate Holdings 1695, LLC, hold and dispose of foreclosed real estate. OptimumBank is currently operating under a Consent Order issued by the Federal Deposit Insurance Corporation ("FDIC") and the State of Florida Office of Financial ("OFR"), effective as of April 16, 2010. As of Sept. 30, 2010, the Bank was considered "undercapitalized" under these FDIC requirements. As an "undercapitalized" institution, the Bank is subject to restrictions on capital distributions, payment of management fees, asset growth and the acceptance, renewal or rollover of brokered and high-rate deposits. In addition, the Bank must obtain prior approval of the FDIC prior to acquiring any interest in any company or insured depository institution, establishing or acquiring any additional branch office, or engaging in any new line of business. "The Bank [OptimumBank] has experienced recent and continuing increases in nonperforming assets, declining net interest margin, increases in provisions for loan losses, continuing high levels of noninterest expenses related to the credit problems, and eroding regulatory capital which raise substantial doubt about the Bank's ability to continue as a going concern," the Company said in its Form 10-Q for the quarter ended Sept. 30, 2010. PMMB INVESTMENTS: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: PMMB Investments, LLC dba SanSai Japanese Grill 820 Olive Street Saint Louis, MO 63101 Bankruptcy Case No.: 11-48664 Chapter 11 Petition Date: August 15, 2011 Court: United States Bankruptcy Court Eastern District of Missouri (St. Louis) Judge: Barry S. Schermer Debtor's Counsel: Spencer P. Desai, Esq. DESAI EGGMANN MASON LLC Pierre Laclede Center 7733 Forsyth Boulevard, Suite 2075 St. Louis, MO 63105 Tel: (314) 881-0800 Fax: (314) 881-0820 E-mail: sdesai@demlawllc.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/moeb11-48664.pdf The petition was signed by Daniel A. Burns, member. SALT POINT: Case Summary & 6 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Salt Point LLC 23255 Highway 1 Jenner, CA 95450 Bankruptcy Case No.: 11-13059 Chapter 11 Petition Date: August 16, 2011 Court: United States Bankruptcy Court Northern District of California (Santa Rosa) Judge: Alan Jaroslovsky Debtor's Counsel: Paul M. Jamond, Esq. LAW OFFICES OF PAUL M. JAMOND 200 4th St. #300 Santa Rosa, CA 95401 Tel: (707) 526-4550 E-mail: jamond@pacbell.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's six largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/canb11-13059.pdf The petition was signed by Chuck Butler, sole & managing member LLC. SCHOMAC GROUP: Files Schedules of Assets and Liabilities -------------------------------------------------------- The Schomac Group, Inc., filed with the Bankruptcy Court its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A - Real Property $28,826,380 B - Personal Property $20,103,517 C - Property Claimed as Exempt D - Creditors Holding $21,615,068 Secured Claims E - Creditors Holding $24,990 Unsecured Priority Claims F - Creditors Holding $12,942,947 Non-priority Claims ------ ----------- Total $48,929,897 $34,583,005 Tucson, Arizona-based The Schomac Group, Inc., develops, constructs, manages, and invests in residential, industrial, and commercial real property. Tedco, Inc., invests in real property and in mortgages backed by real property. Schomac Group and Tedco filed for Chapter 11 bankruptcy (Bankr. D. Ariz. Case Nos. 11- 22717 and 11-22720) on Aug. 9, 2011. Judge Eileen W. Hollowell presides over the cases. Mesch, Clark & Rothschild, P.C., serves as the Debtors' counsel. Attorney for secured lender LNV Corp. is William Novotny, Esq., at Mariscal Weeks McIntyre & Friedlander, PA. SCHOMAC GROUP: Sec. 341 Creditors Meeting Set for Sept. 8 --------------------------------------------------------- The U.S. Trustee in Phoenix, Arizona, will convene a Meeting of Creditors pursuant to 11 U.S.C. Sec. 341(a) in the bankruptcy cases of The Schomac Group, Inc., and Tedco Inc. on Sept. 8, 2011, at 12:00 p.m. at U.S. Trustee Meeting Room, James A. Walsh Court, 38 S. Scott Ave., St. 140, in Tucson. 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. About The Schomac Group & Tedco Tucson, Arizona-based The Schomac Group, Inc., develops, constructs, manages, and invests in residential, industrial, and commercial real property. Tedco, Inc., invests in real property and in mortgages backed by real property. Schomac Group and Tedco filed for Chapter 11 bankruptcy (Bankr. D. Ariz. Case Nos. 11- 22717 and 11-22720) on Aug. 9, 2011. In its schedules, Schomac Group listed $48,929,897 in total assets and $34,583,005 in total liabilities. Judge Eileen W. Hollowell presides over the cases. Mesch, Clark & Rothschild, P.C., serves as the Debtors' counsel. Attorney for secured lender LNV Corp. is William Novotny, Esq., at Mariscal Weeks McIntyre & Friedlander, PA. SCHOMAC GROUP: Has Permission to Hire Mesch Clark as Counsel ------------------------------------------------------------ The Schomac Group, Inc., and Tedco Inc. won Bankruptcy Court permission to employ Mesch, Clark & Rothschild, P.C., as their bankruptcy counsel. The hourly rates of the MC&R attorneys and staff who may work on the Debtors' case are: Michael McGrath, Esq. $495 Frederick J. Petersen, Esq. $350 Partners $250 - $500 Associates $200 - $300 Paralegals $160 Legal Assistants $85 - $115 Law Clerks $100 Michael McGrath, Esq., attests that his firm does not represent any other entity having an adverse interest in connection with the Debtors' cases. About The Schomac Group & TEDCO Tucson, Arizona-based The Schomac Group, Inc., develops, constructs, manages, and invests in residential, industrial, and commercial real property. Tedco, Inc., invests in real property and in mortgages backed by real property. Schomac Group and Tedco filed for Chapter 11 bankruptcy (Bankr. D. Ariz. Case Nos. 11- 22717 and 11-22720) on Aug. 9, 2011. In its schedules, Schomac Group listed $48,929,897 in total assets and $34,583,005 in total liabilities. Judge Eileen W. Hollowell presides over the cases. Mesch, Clark & Rothschild, P.C., serves as the Debtors' counsel. The firm may be reached at: Michael McGrath, Esq. Frederick J. Petersen, Esq. MESCH, CLARK & ROTHSCHILD, P.C. 259 North Meyer Avenue Tucson, AZ 85701 Tel: (520) 624-8886 Fax: (520) 798-1037 E-mail: ecfbk@mcrazlaw.com mmcgrath@mcrazlaw.com fpetersen@mcrazlaw.com Attorney for secured lender LNV Corp. is William Novotny, Esq., at Mariscal Weeks McIntyre & Friedlander, PA. SCHOMAC GROUP: Hiring Dennis Winans CPA as Consultant ----------------------------------------------------- The Schomac Group, Inc., and Tedco, Inc., seek to establish a procedure for the retention and compensation of Dennis Winans, CPA who, according to papers filed in Court, "is, or may be held to be, professionals under the requirements of the Bankruptcy Code, but who is not directly involved in the Debtors' restructuring and will not be receiving significant monthly payments from the Debtors on account of his fees and costs." The Debtors customarily retain the services of Dennis Winans, CPA to assist them in matters arising in the ordinary course of their businesses. Mr. Winans is the former President of the Debtors, and was a long time member of their senior management team. As a cost saving measure, Mr. Winans was transitioned from a full time employee to a consultant who is paid on an hourly basis. The Debtors do not believe that Dennis Winans, CPA has an interest materially adverse to the Debtors, their estates, creditors or interest holders. The Debtors said there is a significant risk that Dennis Winans, CPA would be unwilling to provide services, and might suspend services pending a specific Court order authorizing the services. Moreover, requiring Dennis Winans, CPA to file retention pleadings and participate in the payment approval process along with the Chapter 11 professionals would unnecessarily burden the Clerk's Office, the Court and the Office of the United States Trustee, while adding significantly to the administrative costs of these cases without any corresponding benefit to the Debtors' estates. The Debtors propose that they be permitted to pay, without formal application to the Court by Dennis Winans, CPA, fees at an hourly rate of $90 plus expenses, with monthly fees and costs not to exceed $9,000 per month. Payments to Dennis Winans, CPA would become subject to Court approval pursuant to an application for allowance of fees and expenses under sections 330 and 331 of the Bankruptcy Code, pursuant to the same procedures that are established for Chapter 11 professionals, only if the payments exceed 110% of the $9,000 cap. About The Schomac Group & TEDCO Tucson, Arizona-based The Schomac Group, Inc., develops, constructs, manages, and invests in residential, industrial, and commercial real property. Tedco, Inc., invests in real property and in mortgages backed by real property. Schomac Group and Tedco filed for Chapter 11 bankruptcy (Bankr. D. Ariz. Case Nos. 11- 22717 and 11-22720) on Aug. 9, 2011. In its schedules, Schomac Group listed $48,929,897 in total assets and $34,583,005 in total liabilities. Judge Eileen W. Hollowell presides over the cases. Mesch, Clark & Rothschild, P.C., serves as the Debtors' counsel. Attorney for secured lender LNV Corp. is William Novotny, Esq., at Mariscal Weeks McIntyre & Friedlander, PA. SCHOMAC GROUP: Seeks to Use YSI Dividends & Rents ------------------------------------------------- The Schomac Group, Inc., and Tedco, Inc., seek to use the dividends received from their ownership stake in U-Store-It L.P. and the rents from Schomac Group's office building at 6418 E. Tanque Verde Road in Tucson, Arizona, to fund expenses while in bankruptcy. The Debtors said the dividends and the rents constitute cash collateral securing loan obligations to LNV Corp. The Schomac Group entered into a $25,000,000 revolving line of credit agreement with First National Bank of Arizona pursuant to a Business Loan Agreement dated April 12, 2006, as modified. LNV Corp., a subsidiary of Beal Bank, is the holder in due course of the note and the beneficiary under the Deed of Trust and security agreements. The principal balance owed on the Loan is $17,709,053. The LNV Loan is to be secured by (a) a Deed of Trust encumbering Schomac's interest in two commercial lots in Marana, Arizona, (b) a Deed of Trust encumbering Schomac's interest in the E. Tanque Verde Road property, (c) Schomac's interest in 2,279,473.57 Class B Units of U-Store-IT, along with all proceeds from those shares, and (d) Tedco's interest in an additional 454,009.51 Class B Units of U-Store-IT, along with all proceeds from those shares. The Debtors said the claims of LNV are adequately protected by equity in the property securing the loans. The Debtors said the E. Tanque Verde Road property is valued at roughly $875,000 and commercial lots in Marana Arizona are valued at roughly $415,000. The Class B shares of U-Store-IT, held by Schomac and Tedco, which further secure the LNV Loan, are all readily convertible into a like number of common shares of U-Store-It Trust, a Maryland real estate investment trust. The common shares of U-Store-It Trust are publicly traded on the NYSE under the symbol "YSI". The price of YSI shares at the close of trading on Aug. 8, 2011, was $8.72 per share. Based on this closing price, the current market value of the 2,279,473.57 Class B shares held by Schomac is $19,877,009.53, and the market value of the 454,009.51 Class B shares held by Tedco is $3,958,962.93. On July 22, 2011, YSI issued a quarterly dividend to its shareholders, including Schomac and Tedco. Schomac received $159,563.15 and Tedco received $31,780.67. LNV asserts a lien against such proceeds. The proceeds continue to be held by Schomac and Tedco. The Debtors propose to provide adequate protection by granting LNV replacement liens on the new dividends received and in future rent proceeds, to the nature, extent and priority of their prepetition liens. Furthermore, the Debtors will provide the lenders adequate protection by using cash collateral to maintain the insurance and continue operation of its business. The Debtors pointed out that since LNV will receive a replacement lien for income produced by the Debtors post-petition, and LNV's claims are secured by real and personal property and there is no evidence the real property is likely to depreciate, LNV is not entitled to adequate protection payments. About The Schomac Group & TEDCO Tucson, Arizona-based The Schomac Group, Inc., develops, constructs, manages, and invests in residential, industrial, and commercial real property. Tedco, Inc., invests in real property and in mortgages backed by real property. Schomac Group and Tedco filed for Chapter 11 bankruptcy (Bankr. D. Ariz. Case Nos. 11- 22717 and 11-22720) on Aug. 9, 2011. In its schedules, Schomac Group listed $48,929,897 in total assets and $34,583,005 in total liabilities. Judge Eileen W. Hollowell presides over the cases. Mesch, Clark & Rothschild, P.C., serves as the Debtors' counsel. Attorney for secured lender LNV Corp. is: William Novotny, Esq. MARISCAL WEEKS MCINTYRE & FRIEDLANDER, PA 2901 N. Central Avenue, Suite 200 Phoenix, AZ 857012-2705 E-mail: William.novotny@mwmf.com STELLAR GT: Counsel Must Serve Papers to Chapter 7 Entity --------------------------------------------------------- In an Aug. 17, 2011 Memorandum, a copy of which is available at http://is.gd/h1rJCnfrom Leagle.com, Bankruptcy Judge Paul Mannes directed the counsel to Stellar GT TIC LLC and VFF TIC LLC to serve all papers filed in the Debtors' cases on Stellar GT Lessee, LLC, a debtor in Chapter 7 Case No. 10-17376 (Bankr. D. Md.), pending before the Hon. Wendelin I. Lipp. Gary A. Rosen is the duly appointed Chapter 7 trustee for Stellar GT Lessee. Kevin Newman of Greystar Management Services LP is the receiver of Stellar GT Lessee pursuant to orders of the Circuit Court for Montgomery County, Maryland. About Stellar GT Stellar GT TIC LLC and VFF TIC LLC, owners of the Georgian apartments located at 8750 Georgia Avenue in Silver Spring, Maryland, filed for Chapter 11 bankruptcy protection (Bankr. D. Md. Case Nos. 11-22977 and 11-22980) on June 22, 2011. Judge Wendelin I. Lipp oversees the case. Michelle Maloney-Raymond is the case administrator. Matthew G. Summers, Esq., at Ballard Spahr LLP, serves as the Debtors' counsel. The Debtors negotiated a plan of reorganization before filing for Chapter 11. The proposed plan is premised on either (1) a sale of the project pursuant to an auction process or (2) a consensual restructuring of the secured debt. Broker CB Richard Ellis Inc. has been hired to conduct the sale. The auction rules provide that a first-round sealed bid would be required to be submitted by Aug. 24. The broker would then have until Sept. 5 to negotiate with the first-round bidders. Second- round sealed bids would be due Sept. 5. The highest second-round bid would be identified by Sept. 12, 2011. The highest bid would be submitted for approval at the confirmation hearing in October. Wells Fargo, the holder of a $207.6 million secured debt, can bid at the auction. The Lender is represented by Mark Taylor, Esq., at Kilpatrick Townsend & Stockton LLP, and Jantra Van Roy, Esq., at Zeichner Ellman & Krause LLP. W. Clarkson McDow, Jr., U.S. Trustee for Region 4, has not appointed an unsecured creditors' committee in the Debtors' cases. The U.S. Trustee will appoint an unsecured creditors' committee upon the request of an adequate number of eligible unsecured creditors. STONY POINT LAND: Dist. Ct. Affirms Ruling in Hubbard Suit ---------------------------------------------------------- District Judge John A. Gibney, Jr., affirmed a final order of the U.S. Bankruptcy Court for the Eastern District of Virginia awarding judgment in favor of Stony Point Land, Inc., and against Thomas R. Hubbard and Katherine Hubbard, and dismissing Count II of the Hubbards' complaint for breach of contract and Count I of Stony Point's counterclaim for specific performance. The District Court appeal arises out of a civil action filed by the Hubbards in the Circuit Court for the City of Richmond on Jan. 5, 2009, alleging, in two separate counts: (1) that Stony Point violated the Virginia Property Owners' Association Act, Va. Code Sections 55.508, et seq., by failing to make a valid delivery of the Property Owner's Association disclosure packet; and (2) that Stony Point breached its real estate purchase agreement with the Hubbards dated Sept. 21, 2006. Stony Point filed a Counterclaim requesting specific performance of the contract to purchase the lot (Counterclaim Count I) or, in the alternative, an award of damages (Counterclaim Count II). On Sept. 29, 2009, Judge Richard Taylor, Jr., ruled against the Hubbards with respect to Count I of their Complaint and entered an order dismissing the claim. On Oct. 13, 2009, Stony Point non-suited Count II of the Counterclaim, leaving only Count II of the Complaint and Count I of the Counterclaim remaining. The Hubbards and the Debtor are parties to a Sept. 21, 2006 real estate purchase agreement to purchase Lot 2 from Stony Point in a planned 13-lot subdivision. The purchase price was $450,000 with the Hubbards paying a deposit of $45,000 upon execution of the Agreement. Upon filing for bankruptcy, Stony Point removed the State Court Action to the Bankruptcy Court. The Bankruptcy Court allowed Judge Taylor's previous rulings to stand, without permitting the Hubbards to re-litigate the issues decided in state court. The Bankruptcy Court then held a trial in which it ultimately found in Stony Point's favor on the remaining claims not decided in state court. The Hubbards timely filed a Notice of Appeal. The District Court case is Thomas R. Hubbard, et al., v. Stony Point Land, INC., Civil Action No. 3:11CV237 (E.D. Va.). A copy of Judge Gibney's Aug. 15, 2011 Memorandum Opinion is available at http://is.gd/2HsdZsfrom Leagle.com. About Stony Point Land Based in Richmond, Virginia, Stony Point Land, Inc., filed for Chapter 11 bankruptcy (Bankr. E.D. Va. Case No. 10-31740) on March 12, 2010. Roy M. Terry, Jr., Esq. -- rterry@durrettebradshaw.com -- at DurretteBradshaw PLC in Richmond, serves as bankruptcy counsel. In its petition, the Debtor estimated assets and debts of $1 million to $10 million. STRANAHAN INDUSTRIES: Case Summary & 2 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Stranahan Industries, Inc. 663 State Route 149 Lake George, NY 12845 Bankruptcy Case No.: 11-12629 Chapter 11 Petition Date: August 17, 2011 Court: U.S. Bankruptcy Court Northern District of New York (Albany) Judge: Robert E. Littlefield, Jr. Debtor's Counsel: Robert J. Rock, Esq. LAW OFFICE OF ROBERT J. ROCK 60 South Swan Street Albany, NY 12210 Tel: (518) 463-5700 E-mail: attyrjrock@juno.com Scheduled Assets: $2,305,000 Scheduled Debts: $283,925 A list of the Company's two largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/nynb11-12629.pdf The petition was signed by Daniel Stranahan, president. THOMAS GRABANSKI: Crop Production Services' Claim Is Dischargeable ------------------------------------------------------------------ Bankruptcy Judge William A. Hill ruled that the debt owed by Thomas M. Grabanski to Crop Production Services, Inc. is dischargeable. CPS has sued the Debtor seeking a determination that the balance of $777,433.58, plus monthly accruing service charges, owed by G&K Farms and personally guaranteed by the Defendant, is nondischargeable. The Defendant was a partner at G&K Farms. The lawsuit is styled, Crop Production Services, Inc., v. Thomas M. Grabanski, Adv. Proc. No. 10-7033 (Bankr. D. N.Dak.). A copy of Judge Hill's Aug. 18, 2011 Memorandum and Order is available at http://is.gd/qk6U7Afrom Leagle.com. Based in Grafton, North Dakota, Thomas M. Grabanski and Mari K. Grabanski aka Grabanski Grain LLC filed for Chapter 11 bankruptcy protection (Bankr. D. N.Dak. Case No. 10-30902) on July 22, 2010. Judge William A. Hill presides the case. DeWayne Johnston, Esq., at Johnston Law Office, represents the Debtor. The Debtor estimated assets of between $1 million and $10 million, and debts of $10 million and $50 million. UHA CORPORATION: Files for Bankruptcy in Columbus, Ohio ------------------------------------------------------- Carla Main at Bloomberg News reports that UHA Corp. filed for bankruptcy protection (Bankr. S.D. Ohio Case No. 11-br-58456) in Columbus, Ohio, on Aug. 16, declaring assets of as much as $10 million and liabilities of as much as $50 million. All of the equity of the Columbus, Ohio-based company is owned by Uziel Haimoff, who was identified as the managing member of the company in court papers. The largest unsecured creditor is Bank of America Corp., with a claim of $13.6 million, of which $9.58 million is secured. The claim is "unliquidated" and "disputed," according to a statement by UHA in a court filing. UHA CORPORATION: Case Summary & Largest Unsecured Creditor ---------------------------------------------------------- Debtor: UHA Corporation LLC c/o Uziel Haimoff 1943 Malvern Rd Columbus, OH 43221 Bankruptcy Case No.: 11-58456 Chapter 11 Petition Date: August 15, 2011 Court: United States Bankruptcy Court Southern District of Ohio (Columbus) Judge: C. Kathryn Preston Debtor's Counsel: Robert J. Morje, Esq. P.O. Box 6545 600 South Pearl Street Columbus, OH 43206 Tel: (614) 224-8000 Fax: (614) 588-8826 E-mail: rmorje.attorney@gmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 In its list of 20 largest unsecured creditors, the Company placed only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Bank of America, National $13,620,000 Ass. c/o C-III Asset Management LLC 5221 N O'Connor Blvd, Suite 600 Irving, TX 75039 The petition was signed by Uziel Haimoff, managing member. UPSTATE HEIGHTS: Case Summary & Largest Unsecured Creditor ---------------------------------------------------------- Debtor: Upstate Heights LLC 72 Horton Dr Monsey, NY 10952 Bankruptcy Case No.: 11-23650 Chapter 11 Petition Date: August 15, 2011 Court: United States Bankruptcy Court Southern District of New York (White Plains) Judge: Robert D. Drain Debtor's Counsel: Joshua N. Bleichman, Esq. BLEICHMAN & KLEIN 268 Route 59 Spring Valley, NY 10977 Tel: (845) 425-2510 Fax: (845) 425-7362 E-mail: bleichmanklein@yahoo.com Scheduled Assets: $650,714 Scheduled Debts: $2,228,383 In its list of 20 largest unsecured creditors, the Company placed only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Sulco Development Corp. Upstate Heights, $2,228,383 739 Chucrh Ave Hilldale Road, Brooklyn, NY 11218 Hurleyville, NY 12747 The petition was signed by Mozes Reisman. WASTE2ENERGY HOLDINGS: Aug. 26 Hearing on Bid for Ch. 11 Trustee ---------------------------------------------------------------- The Bankruptcy Court will convene a hearing on a motion by creditors for the appointment of a Chapter 11 trustee for Waste2Energy Holdings, Inc., on Aug. 26, 2011, at 10:00 a.m. at US Bankruptcy Court, 824 Market St., 5th Fl., Courtroom #5, in Wilmington, Delaware. Objections are due by Aug. 23, 2011. The petitioning creditors' motion for appointment of a trustee is reported in the Aug. 11 edition of the Troubled Company Reporter. About Waste2Energy Holdings Greenville, South Carolina-based Waste2Energy Holdings, Inc. (Pink Sheets: WTEZ) -- http://www.waste2energy.com/-- is a "cleantech" technology company that designs, builds, installs and sells waste to energy plants that generate "Renewable Green Power" converting biomass or other solid waste streams traditionally destined for landfills into clean renewable energy. The Company's balance sheet at June 30, 2010, showed $3.4 million in total assets, $11.7 million in total liabilities, and a stockholders' deficit of $8.3 million. On Oct. 30, 2010, $87,500 of principal amount of the Company's 12% Senior Convertible Debentures became due. On Nov. 2, 2010, $40,000 of principal amount of the Debentures became due. The Company did not make the required payment on the maturity date or by the cure period provided by the Debentures and as result an Event of Default under the Debentures has occurred. As reported in the Troubled Company Reporter on July 19, 2010, Marcum LLP, in New York, expressed substantial doubt the Company's ability to continue as a going concern, following its results for the fiscal year ended March 31, 2010. The independent auditors noted that the Company has incurred a significant loss from continuing operations of $11.7 million and used cash of $5.2 million for continuing operations which resulted in an accumulated deficit of $30.4 million and a working capital deficiency of $6.6 million as of March 31, 2010. On Aug. 8, 2011, four creditors filed an involuntary Chapter 11 petition against Waste2Energy Holdings (Bankr. D. Del. Case No. 11-12504). Judge Kevin J. Carey presides over the case. The petitioning creditors, allegedly owed $3.2 million in the aggregate, are represented by Frederick B. Rosner, Esq., at The Rosner Law Group, LLC. * BOND PRICING -- For Week From Aug. 15 - 19, 2011 -------------------------------------------------- Company Coupon Maturity Bid Price ------- ------ -------- --------- AMBAC INC 9.375 8/1/2011 9.000 AMBAC INC 9.500 2/15/2021 13.500 AMBAC INC 7.500 5/1/2023 12.105 ACARS-GM 8.100 6/15/2024 1.000 AHERN RENTALS 9.250 8/15/2013 40.400 AMERICAN ORIENT 5.000 7/15/2015 51.526 BANK NEW ENGLAND 8.750 4/1/1999 14.000 BANK NEW ENGLAND 9.875 9/15/1999 13.500 BANKUNITED FINL 6.370 5/17/2012 7.100 BANKUNITED FINL 3.125 3/1/2034 7.100 C-CALL09/11 5.500 11/15/2029 100.000 CAPMARK FINL GRP 5.875 5/10/2012 53.500 CIRCUS & ELDORAD 10.125 3/1/2012 79.000 CQB-CALL08/11 8.875 12/1/2015 102.910 DECODE GENETICS 3.500 4/15/2011 0.500 DIRECTBUY HLDG 12.000 2/1/2017 32.750 DIRECTBUY HLDG 12.000 2/1/2017 41.000 BLOCKBUSTER INC 11.750 10/1/2014 3.750 DUNE ENERGY INC 10.500 6/1/2012 62.500 EDDIE BAUER HLDG 5.250 4/1/2014 5.625 ENERGY CONVERS 3.000 6/15/2013 44.250 EVERGREEN SOLAR 4.000 7/15/2013 3.625 EVERGREEN SOLAR 13.000 4/15/2015 58.250 EVERGREEN SOLAR 4.000 7/15/2020 13.000 FAIRPOINT COMMUN 13.125 4/1/2018 1.000 FAIRPOINT COMMUN 13.125 4/2/2018 1.250 GREAT ATLANTIC 9.125 12/15/2011 25.000 GREAT ATLA & PAC 6.750 12/15/2012 31.145 GLOBALSTAR INC 5.750 4/1/2028 59.750 HAWKER BEECHCRAF 8.500 4/1/2015 46.500 HAWKER BEECHCRAF 9.750 4/1/2017 37.000 HARRY & DAVID OP 9.000 3/1/2013 2.000 ELEC DATA SYSTEM 3.875 7/15/2023 90.500 HORIZON LINES 4.250 8/15/2012 54.800 LEHMAN BROS HLDG 6.625 1/18/2012 23.000 LEHMAN BROS HLDG 5.250 2/6/2012 23.000 LEHMAN BROS HLDG 6.000 7/19/2012 24.000 LEHMAN BROS HLDG 3.000 10/28/2012 25.125 LEHMAN BROS HLDG 3.000 11/17/2012 24.250 LEHMAN BROS HLDG 5.000 1/22/2013 25.750 LEHMAN BROS HLDG 5.625 1/24/2013 24.250 LEHMAN BROS HLDG 5.100 1/28/2013 25.300 LEHMAN BROS HLDG 5.000 2/11/2013 21.100 LEHMAN BROS HLDG 4.800 2/27/2013 25.500 LEHMAN BROS HLDG 4.700 3/6/2013 25.300 LEHMAN BROS HLDG 5.000 3/27/2013 25.000 LEHMAN BROS HLDG 5.750 5/17/2013 22.250 LEHMAN BROS HLDG 5.250 1/30/2014 24.250 LEHMAN BROS HLDG 4.800 3/13/2014 23.000 LEHMAN BROS HLDG 5.000 8/3/2014 25.300 LEHMAN BROS HLDG 6.200 9/26/2014 24.500 LEHMAN BROS HLDG 5.150 2/4/2015 25.000 LEHMAN BROS HLDG 5.250 2/11/2015 25.250 LEHMAN BROS HLDG 8.800 3/1/2015 24.500 LEHMAN BROS HLDG 7.000 6/26/2015 23.500 LEHMAN BROS HLDG 8.500 8/1/2015 23.000 LEHMAN BROS HLDG 5.000 8/5/2015 25.300 LEHMAN BROS HLDG 7.000 12/18/2015 25.625 LEHMAN BROS HLDG 5.500 4/4/2016 23.000 LEHMAN BROS HLDG 5.875 11/15/2017 23.000 LEHMAN BROS HLDG 6.875 5/2/2018 24.625 LEHMAN BROS HLDG 8.050 1/15/2019 23.833 LEHMAN BROS HLDG 11.000 6/22/2022 25.300 LEHMAN BROS HLDG 11.000 7/18/2022 24.500 LEHMAN BROS HLDG 11.500 9/26/2022 21.500 LEHMAN BROS HLDG 9.500 1/30/2023 22.625 LEHMAN BROS HLDG 9.500 2/27/2023 21.250 LEHMAN BROS HLDG 9.000 3/7/2023 19.775 LEHMAN BROS HLDG 10.000 3/13/2023 25.125 LEHMAN BROS HLDG 18.000 7/14/2023 25.750 LEHMAN BROS HLDG 10.375 5/24/2024 25.300 LEHMAN BROS INC 7.500 8/1/2026 15.000 LEHMAN BROS HLDG 11.000 3/17/2028 25.497 LIFEPT VILGE 8.500 3/19/2013 49.500 LOCAL INSIGHT 11.000 12/1/2017 2.250 LOCO-CALL08/11 11.750 12/1/2012 104.500 LOCO-CALL08/11 11.750 11/15/2013 99.400 MAJESTIC STAR 9.750 1/15/2011 18.000 MCMORAN EXPLORAT 5.250 10/6/2011 94.932 MCMORAN EXPLORAT 5.250 10/6/2011 101.000 MGIC INVT CORP 5.625 9/15/2011 99.500 NATRC-CALL08/11 9.250 3/1/2012 98.000 NEBRASKA BOOK CO 8.625 3/15/2012 49.500 NBC ACQ CORP 11.000 3/15/2013 8.640 NEWPAGE CORP 10.000 5/1/2012 11.500 NEWPAGE CORP 12.000 5/1/2013 2.500 RESTAURANT CO 10.000 10/1/2013 10.000 PMI CAPITAL I 8.309 2/1/2027 9.000 RIVER ROCK ENT 9.750 11/1/2011 80.900 RASER TECH INC 8.000 4/1/2013 29.760 SBARRO INC 10.375 2/1/2015 9.500 SPHERIS INC 11.000 12/15/2012 1.875 THORNBURG MTG 8.000 5/15/2013 5.250 TOUSA INC 9.000 7/1/2010 15.000 TIMES MIRROR CO 7.250 3/1/2013 44.900 MOHEGAN TRIBAL 8.000 4/1/2012 77.700 TRICO MARINE SER 8.125 2/1/2013 4.000 TRICO MARINE 3.000 1/15/2027 1.250 TEXAS COMP/TCEH 7.000 3/15/2013 29.000 TEXAS COMP/TCEH 10.250 11/1/2015 37.625 UNIVERSAL CORP 5.000 9/1/2011 99.000 VIRGIN RIVER CAS 9.000 1/15/2012 51.000 WESCO INTL 1.750 11/15/2026 89.000 WCI COMMUNITIES 4.000 8/5/2023 1.570 WINDERMERE BAPT 7.700 5/15/2012 18.000 WILLIAM LYONS 7.625 12/15/2012 29.000 WILLIAM LYON INC 10.750 4/1/2013 29.000 WILLIAM LYON INC 7.500 2/15/2014 20.000 WASH MUT BANK FA 5.125 1/15/2015 0.200 ********* 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 ***