/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/110824.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, August 24, 2011, Vol. 15, No. 234 Headlines 785 PARTNERS: Creditor First Manhattan Asks Court to Dismiss Case ALLEN FERGUSON: Dominion Realty Closes $2 Million Sale Deal AMERICAN DIAGNOSTIC: Court Extends Deadline to File Plan to Oct. 1 AMERICAN DIAGNOSTIC: Access to Cash Collateral Extended to Oct. 1 AMN HEALTHCARE: Moody's Affirms 'Ba3' on "Slow Improvement" ANDRONICO'S MARKET: Files for Bankruptcy, Will Sell Assets ARK DEVELOPMENT: Made Illegal Petition Date Transfers, Says BB&T ARK DEVELOPMENT: Seeks Use of Rental Income to Maintain Property ARRAY BIOPHARMA: Posts $56.3 Million Net Loss in Fiscal 2011 ATCONTACT COMMS: Judge Invites Appeal Over Sec. 365(d)(3) BERNARD L. MADOFF: Peter Madoff's Aston Martin Sells for $247,500 BESO LLC: Landry's Gets Court Approval to Operate Restaurant BIOVEST INTERNATIONAL: Posts $1.8 Million Net Loss in June 30 Qtr. BLUE DOLPHIN ENERGY: Incurs $413,900 2nd Quarter Net Loss CAPMARK FINANCIAL: Aims to Implement $4-Bil. Plan by Sept. 30 CASCO HOTEL: Meeting of Creditors Scheduled for Sept. 26 CATHOLIC CHURCH: Wilmington Wins Confirmation of Ch. 11 Plan CATHOLIC CHURCH: Wilm. Removal Period Extended Until Oct. 23 CATHOLIC CHURCH: Automatic Stay for Wilm. Parishes Extended CAVIATA ATTACHED: Wants to Use Rental Income for Operating Costs CENTRAL FEDERAL: Posts $1.91-Mil. Second Quarter Net Loss COATES INTERNATIONAL: Incurs $536,000 Net Loss in Second Quarter COMCAM INTERNATIONAL: Delays Filing of Quarterly Report CONSOL ENERGY: S&P Puts 'BB' on Watch Positive After Noble Deal CONVERSION SERVICES: June 30 Balance Sheet Upside Down by $3.84MM COYOTES HOCKEY: Glendale Won't Sell Bonds to Facilitate Sale CRYOPORT INC: Incurs $2 Million Net Loss in Second Quarter CYTOCORE INC: Incurs $492,000 Net Loss in Second Quarter CYTOMEDIX INC: Incurs $791,000 Second Quarter Net Loss DAMON'INT'L: Franchise, Franchisor Assets Up for Sale DELAMORE ELIZABETH: Major Tenant's Exit Doesn't Pose Threat DESERT OASIS: Amends Disclosure Statement Prior to Hearing DEX ONE: Cut by S&P to 'B-' as Business "Remains Under Pressure" DIAMOND RANCH: Incurs $306,800 Net Loss in June 30 Quarter DIGITILITI INC: Delays Filing of Quarterly Report on Form 10-Q DREIER LLP: Trustee Says Clients Same as Ponzi Investors DUTCH GOLD: Incurs $1.4 Million Net Loss in Second Quarter EAT AT JOE'S: Reports $153,000 Net Income in Second Quarter EDINBURG INVESTMENTS: Plans to Complete Business Venture in Ch. 11 ELBIT VISION: Posts $302,000 Second Quarter Net Income ELITE PHARMACEUTICALS: Has $30.7-Mil. Net Loss in June 30 Quarter ENER1 INC: Robbins Umeda Commences Probe on Possible Breaches EVERGREEN SOLAR: Gets Letter From NASDAQ on Late Form 10-Q FENTON SUB: Meeting of Creditors Continued Until Today GSC GROUP: Employee Wants D&O Policy to Cover SEC Defense GUARANTY FINANCIAL: Trustee Sues Temple-Inland, D&Os for $1-Bil. GUARANTY FINANCIAL: KBW Shorted Clients' Shares, Trustee Says GUIDED THERAPEUTICS: Incurs $496,000 Net Loss in Second Quarter HALO COMPANIES: Incurs $1.2 Million Second Quarter Net Loss HICKOK INCORPORATED: Posts $125,900 Net Loss in Q3 Ended June 30 HOLDINGS GAMING: Raised by S&P to 'CCC+' Due to PA Table Games HORIZON BANCORP: Incurs $81,000 Net Loss in Second Quarter HOWREY LLP: Sells Off Furniture as Part of Wind-Down HUBBARD PROPERTIES: Dispute With IWA Sent to Mediation HUDSON HEALTHCARE: City Counsel Gives Up Right to $2 Million Claim HUDSON HEALTHCARE: U.S. Trustee Appoints 7-Member Creditor's Panel INDIANAPOLIS DOWNS: Blasts Ex-Gen. Managers' Compensation Claims INDUSTRIAL ENTERPRISES: Tabor Fights to Keep $1.52-Mil. of Stock INNOVATIVE FOOD: Reports $562,600 Net Income in 2nd Quarter INT'L COMMERCIAL: Swings to $5,500 Profit in Second Quarter INTERNATIONAL RARITIES: Coin Firm, Mired in Suits, Seeks Ch. 11 J.C. EVANS: U.S. Trustee Appoints 7-Member Creditor's Panel JAMES MCDILDA: Bankruptcy Won't Affect $600,000 of Housing Loans JEFFERSON, AL: Local Borrowers Punished as County Faces Bankruptcy JEFFREY GEFTOS: Court Says Plan Outline Has Defects JONES SODA: Incurs $1.8 Million Net Loss in 2nd Quarter KIEBLER RECREATION: Peek'n Peak Resort Has "Several Bids" KINETIC CONCEPTS: S&P Gives 'BB-' Rating on Senior Secured Debt LAMBUTH UNIVERSITY: Committee Taps Stephen Hughes as Attorney LANIER HEALTH: S&P Revises Outlook on 'BB' Rating to Positive LEED CORP: DIP Loans Approved for Old School Project Completion LEHMAN BROTHERS: Dechert Has Nod to Assist Directors in JPM Suit LEHMAN BROTHERS: Partial Dismissal of LBS ERISA Suit Granted LEHMAN BROTHERS: FINRA Orders Broker to Repay $2.2-Mil. LEHMAN BROTHERS: Unable to Provide Info in SEC Form 13-F LINDEN PONDS: Wins Confirmation of Chapter 11 Plan LUMEA STAFFING: Two Lumea Inc. Units in Chapter 11 MADISON 92ND: Marriott Unit Wants to Use Hotel Revenues MADISON 92ND: Initial Case Conference Set for Sept. 22 MANISTIQUE PAPERS: RBS Wants Chapter 7 Liquidation MARITIME COMMUNICATIONS: 341 Meeting of Creditors on Sept. 23 MARKETING WORLDWIDE: Incurs $540,000 Net Loss in June 30 Quarter MAQ MANAGEMENT: U.S. Trustee Will Not Appoint Creditors Committee MEDCLEAN TECHNOLOGIES: Incurs $1.47-Mil. Second Quarter Net Loss MEDL MOBILE: Widens Second Quarter Net Loss to $228,900 MESA AIR: Wants Until Sept. 22 to Object to Claims MESA AIR: Reaches Claims Settlement With Travis County MESA AIR: HSH Nordbank, et al., Transfer Claims to Bridge Business MMRGLOBAL INC: Incurs $2.3 Million Net Loss in Second Quarter MORTGAGEBROKERS.COM: Incurs $145,985 Net Loss in Second Quarter MOUNT LEBANON: Christian Care Acquires Memorial Home for $3 Mil. MT. VERNON: Can Use Cash Collateral for Operating Expenses NANCY SILVERMAN: Puts Georgetown Saloon Up For Sale NATIONAL AUTOMATION: Incurs $505,000 Net Loss in Second Quarter NEW GENERATION: Incurs $1.9 Million Second Quarter Net Loss NEW LEAF: Delays Filing of Quarterly Report on Form 10-Q NEWPAGE CORP: Said to Have Filed for Bankruptcy Tuesday NEXTWAVE WIRELESS: Posts $65.4 Million Net Loss in Q2 Ended July 2 NORTEL NETWORKS: Court Requests for Postponement of Mediation NPX CORP: Owner of 47 Condo Units in Wash. in Chapter 11 NUVILEX INC: Incurs $1.39-Mil. Net Loss in Fiscal 2011 ONE RENAISSANCE: Wells Fargo, et al. Want Plan Confirmation Denied OTERO COUNTY HOSPITAL: Sec. 341 Creditors' Meeting on Sept. 22 OTERO COUNTY HOSPITAL: Seeks to Pay Alamogordo Surgery Ventures OTERO COUNTY HOSPITAL: To Assume Hospital Facility Lease OTTILIO PROPERTIES: Voluntary Chapter 11 Case Summary PACE UNIVERSITY: Moody's Affirms Ba1 Debt Rating; Outlook Stable PAYMENT DATA: Incurs $238,000 Net Loss in Second Quarter PENINSULA HOSPITAL: Meets With Investors to Keep Hospital Open PENINSULA HOSPITAL: Summoned to Answer Involuntary Bankruptcy PERKINS & MARIE: Disclosure Statement Hearing Moved to Sept. 8 PETTERS GROUP: Polaroid Global Settlement Upheld on Appeal PHILADEPHIA ORCHESTRA: Musicians Spurn Management's Plan PONIARD PHARMACEUTICALS: Incurs $3.9-Mil. 2nd Quarter Net Loss POSITRON CORP: Incurs $2.8 Million Net Loss in Second Quarter POWER EFFICIENCY: Incurs $980,000 Net Loss in Second Quarter PROFESSIONAL VETERINARY: Parties Defer Plan Outline Hearing RADIANT OIL: Incurs $507,000 Net Loss in Second Quarter RAINBOW 215: Court Confirms Chapter 11 Plan of Reorganization ROCHA DAIRY: Court OKs Robinson Anthon as Bankruptcy Lawyers RQB RESORT: Sept. 15 Hearing on Chapter 11 Plan SAFETY HARBOR: Commission Approves Deal to Buy 13-Acre Property SHENGDATECH INC: Board Sues CEO in Chinese Reverse Merger Case SKILLSOFT: S&P Affirms B+ Corp. Credit Rating; Outlook Negative SKINNY NUTRITIONAL: Incurs $2.5 Million Second Quarter Net Loss SPARTA COMMERCIAL: Incurs $3.6 Million Net Loss in Fiscal 2011 SPECTRAWATT INC: Seeks Chapter 11 Protection STACKPOLE POWERTRAIN: S&P Assigns 'B+' Corporate; Outlook Stable TAVERN ON THE GREEN: Rights Get $1.3 Million Opening Bid TAYLOR BEAN: Trustee Files 200 New Suits Over Transfers TERRESTAR NETWORKS: Wants Plan Exclusivity Until Oct. 21 TERRESTAR CORP: Judge Rejects Sprint's Summary Judgment Plea TRIBUNE CO: Appeals Court Ruling May Force Tribune to Split Assets TRIBUNE CO: Names Tony Hunter CEO of Publishing Division TRIBUNE CO: Debtors File Periodic Rule 2015.3 Report TRONOX INC: Keeps Bankruptcy Bankers for 'Strategic Options' UCI HOLDINGS: S&P Assigns 'B' Corporate Credit Rating VALLEJO, CA: Citizens Still Feeling Shockwaves From Bankruptcy VOTORANTIM CEMENT: Moody's Assigns 'Ba1' Sr. Sec. Credit Rating WASHINGTON MUTUAL: FDIC Must Face $10BB Deutsche Bank Suit WESTERN APARTMENT: Trustee Says Hotel May Be Auctioned Off WILLIAM LYON: Cut by S&P to 'D' on Missed Payment WILLIAMS LOVE: Bank Lender Objects to Cash Collateral Use WILLIAMS LOVE: Sec. 341 Creditors' Meeting Set for Sept. 19 WILLIAMS LOVE: Hiring Robert G. Burt as Corporate Counsel WILLIAMS LOVE: Taps Tonkon Torp as Bankruptcy Counsel W.R. GRACE: Court OKs Settlement of CDGS' $130-Mil. PD Claims W.R. GRACE: J.M. Sutherland Named VP for Investor Relations W.R. GRACE: To Expand Columbia, Maryland Global Headquarters ZOGENIX INC: Incurs $19.2 Million Net Loss in 2nd Quarter * $3.55-Bil. in Bankruptcy Claims Switched Hands in July * Newspapers Edit Down Outlooks After Discouraging Year * Credit Markets Remain Friendly, Morgan Joseph Report Says * Ex-Kaye Scholer Partner Seeks Dismissal of False Oath Charge * Upcoming Meetings, Conferences and Seminars ********* 785 PARTNERS: Creditor First Manhattan Asks Court to Dismiss Case ----------------------------------------------------------------- Chapter11Cases.com reports that on Aug. 19, 2011, First Manhattan Developments REIT filed a motion asking the Southern District of New York bankruptcy court to dismiss the chapter 11 case of 785 Partners LLC, which was filed on Aug. 3, 2011. According to the report, 785 Partners LLC owns real property known as, and located at, 306 West 48th Street, or 785 Eighth Avenue, New York, New York. A 42-story building was constructed on the property with the intent to sell 122 condominium units in bulk to take advantage of a tax abatement available under the New York City Department of Housing Preservation and Development 421-a. The developer has not obtained the requisite condominium approvals from the New York State Attorney General, however, so none of the condominium units have been sold and the building is unoccupied. The report says that in July, First Manhattan Developments REIT acquired its claims from PB Capital Corporation, as Administrative Agent for lenders PB Capital Corporation and TD Bank, N.A., which initially provided $84 million in secured financing to 785 Partners in January 2007. First Manhattan Developments asserts it now holds a claim of approximately $101 million, but that the fair market value of the property is less than the amount of its claim. The initial lenders began foreclosure proceedings in September 2010 and a summary judgment hearing was scheduled to occur on August 3rd but was stayed by the bankruptcy filing. Chapter11Cases.com says First Manhattan Developments now seeks dismissal of the bankruptcy case or, alternatively, relief from the automatic stay to allow it to complete the foreclosure action. It argues that dismissal of the bankruptcy case is warranted "for several independent reasons, including: (i) the case was filed in "bad faith", (ii) the Debtor has not, and cannot pay the expenses necessary to preserve and maintain the Real Property, (iii) the Debtor has no equity in the Real Property, (iv) the value of the Real Property is diminishing and, (v) the case was filed with no reasonable prospect for rehabilitation or reorganization." The report further states that if the bankruptcy court is not inclined to dismiss the case, First Manhattan Developments asserts that it is entitled to relief from the automatic stay because 785 Partners "has no equity in the Real Property and the Real Property is not necessary for an effective reorganization that has a reasonable possibility of occurring within a reasonable time frame." First Manhattan Developments REIT has noticed the motion for hearing on Sept. 15, 2011, with an objection deadline of September 8th at 4:00 p.m. 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. ALLEN FERGUSON: Dominion Realty Closes $2 Million Sale Deal ----------------------------------------------------------- Michael Schwartz at Richmond Bizsense reports that Dominion Realty Partners closed on the $2 million purchase of a 1.8-acre parcel in Manchester, Richmond, Virginia, and is planning a $15 million apartment project. According to the report, Manchester Place LLC, managed by Dominion Realty, bought the property from three owners, including George- Marshall Corp., a bankrupt real estate holding company tied to Allen Meade Ferguson and his wife, Mary Rutherfoord Mercer Ferguson. The report says the $2.05 million purchase had to be approved by federal bankruptcy court after the Fergusons, known locally for Mr. Ferguson's ties to an old-Richmond investment bank and for their philanthropic efforts, filed Chapter 11 bankruptcy on March 31. About Allen Ferguson Allen Ferguson, along with his wife, filed a Chapter 11 bankruptcy petition (Bankr. E.D. Va. Case No. 11-32141) on March 31, 2011. Mr. Ferguson signed a Chapter 11 petition for Mercer Rug Cleansing, Inc. on April 26, 2011 (Bankr. E.D. Va. Case No. 11- 32775). David K. Spiro, Esq., at Hirschler Fleischer, in Richmond, represents Mercer. Mercer is estimated to have $1 million to $10 million in assets and debts in its Chapter 11 petition. AMERICAN DIAGNOSTIC: Court Extends Deadline to File Plan to Oct. 1 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Illinois has extended to Oct. 1, 2011, the time for American Diagnostic Medicine Inc. to file a Plan and Disclosure Statement. The Court first issued an order requiring the Debtor to file a Chapter 11 plan and explanatory disclosure statement by May 31, 2011. On May 31, 2011, the Court issued a subsequent order extending the time to file a Plan to Aug. 1, 2011. In July, the Debtor asked the Court to further extend the time for it to file a Plan and Disclosure Statement until October 2011, saying that creditors are conducting discovery regarding the termination statement that was filed in October 2010 on behalf of Cole Taylor and Cardinal Health and have not completed their review. Until that review is complete, Debtor said it cannot author a Plant treating the relative interests of secured creditors until the examination of their interests by the Committee is completed. About American Diagnostic Batavia, Illinois-based American Diagnostic Medicine Inc. provides imaging technologies to hospitals, clinics, cardiologists, internal medicine groups and other health care providers throughout the United States. It filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 11-03368) on Jan. 28, 2011. Joshua D. Greene, Esq., and Michael J. Davis, Esq., at Springer, Brown, Covey, Gaetner & Davis, serve as the Debtor's bankruptcy counsel. In its schedules, the Debtor disclosed $11.3 million in total assets and $11.1 million in total debts. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee has hired K&L Gates LLP as its counsel. AMERICAN DIAGNOSTIC: Access to Cash Collateral Extended to Oct. 1 ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois has extended the authorization granted to American Diagnostic Medicine, Inc., to use cash collateral, under an April 29, 2011 final order, to Oct. 1, 2011. A copy of the new budget is available at: http://bankrupt.com/misc/americandiagnostic.agreedorder.pdf A status on the Debtor's continued use of cash collateral will be continued until Sept. 27, 2011, at 10:30 a.m. A copy of the Final Cash Collateral Order is available at no charge at http://bankrupt.com/misc/ADMFinalCashUseOrder.pdf About American Diagnostic Batavia, Illinois-based American Diagnostic Medicine Inc. provides imaging technologies to hospitals, clinics, cardiologists, internal medicine groups and other health care providers throughout the United States. It filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 11-03368) on Jan. 28, 2011. Joshua D. Greene, Esq., and Michael J. Davis, Esq., at Springer, Brown, Covey, Gaetner & Davis, serve as the Debtor's bankruptcy counsel. In its schedules, the Debtor disclosed $11.3 million in total assets and $11.1 million in total debts. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee has hired K&L Gates LLP as its counsel. AMN HEALTHCARE: Moody's Affirms 'Ba3' on "Slow Improvement" ----------------------------------------------------------- Moody's Investors Service assigned an SGL-3 Speculative Grade Liquidity Rating to AMN Healthcare, Inc. Moody's also affirmed AMN's Ba3 Corporate Family Rating, Ba3 Probability of Default Rating, Ba2 ratings on its first lien senior secured credit facilities, and B1 rating on its second lien senior secured credit facilities. The rating outlook is stable. Assignments: Issuer: AMN Healthcare, Inc. -- Speculative Grade Liquidity Rating, Assigned SGL-3 The SGL-3 rating reflects Moody's expectation that liquidity will be adequate to support operations over the next year. This assessment reflects Moody's view that AMN will generate positive free cash flow and maintain significant revolving credit availability. While the company does not have any debt maturities until 2014, it is obligated to make term loan amortization payments per quarter of $4.6 million over the next four quarters and $6.9 million per quarter starting in 3Q12. A $50 million revolving credit facility provides backup liquidity to manage these needs and potential incremental uses of cash, such as increased working capital requirements. Moody's estimates $30-$35 million of availability for cash advances after considering letters of credit and $5 million of borrowings at 6/30/2011. Moody's expects AMN to maintain a good cushion of compliance under the financial maintenance covenants contained in the credit agreement. The affirmation of the Ba3 CFR reflects Moody's view that slow improvement in business and macroeconomic conditions and realized synergies from the Medfinders business acquired in September 2010 will enable AMN to continue to improve operating performance and credit metrics. The affirmation assumes that credit metrics, which are weak for the rating category, will return to appropriate levels over the near-term. Moody's expects pro forma leverage to decline from near 5 times Debt/EBITDA to near 4 times by the end of 2012, and interest coverage to improve to slightly over 2 times (EBITDA-CapEx)/Interest. The Ba3 CFR is constrained by weak credit metrics for the rating category and Moody's expectation for slow improvement in the macroeconomic environment. Moody's believes unemployment will remain elevated over the near-term and employers of healthcare professionals will have the continued ability to fill more openings with permanent hires, which in turn will limit demand for short-term staffing solutions and AMN's short-term ability to grow its business organically. The CFR also incorporates uncertainties regarding the impact of healthcare reform and, specifically, potential changes to reimbursement rates. The CFR continues to benefit from AMN's leading market position in the temporary healthcare staffing industry, diversified customer base, favorable long-term industry trends, and adequate liquidity position. The stable rating outlook anticipates continued sequential improvement in revenue, modest improvements to profit margins, and expectations for leverage to decline to 4 times and interest coverage to improve to above 2 times by the end of 2012. The outlook assumes that AMN will be able to fund loan amortization payments out of internally generated cash flow and improve its liquidity position. Given the weak position within the rating category, the rating or outlook could be lowered with a lack of sufficient improvement in revenue, a deterioration in profit margins, or if Moody's expects leverage and interest coverage to be sustained above 4 times or below 2 times, respectively. Debt- financed acquisitions, reduced cash flow generation, or the use of revolving credit to fund loan amortization payments could also have negative rating implications. However, while upward rating momentum is limited over a near-term horizon, the rating or outlook could be raised if Moody's expects leverage to be sustained below 3 times and coverage to be sustained above 3 times. The principal methodology used in rating AMN was the Global Business & Consumer Service Industry Rating Methodology published in October 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies. Headquartered in San Diego, California, AMN Healthcare Services, Inc. is a leading healthcare staffing company in the U.S. The company recruits physicians, nurses, and allied health professionals, and places them on assignments at acute care hospitals, physician practice groups, and other healthcare settings. For the twelve months ended June 30, 2011, AMN reported revenues of approximately $860 million. ANDRONICO'S MARKET: Files for Bankruptcy, Will Sell Assets ---------------------------------------------------------- Andronico's Market Inc., the 82-year-old California supermarket chain, sought bankruptcy protection from creditors (Bankr. N.D. Calif. Case No. 11-48963) on Aug. 22. Andronico's Market will sell the Company to private equity investor Renovo Capital, Michael Bathon at Bloomberg News reports. Renovo Capital, which will buy the company for an undisclosed amount, will also provide a loan to help fund Andronico's operations while in bankruptcy, according to the report. The Company, based in San Francisco, California estimated as much as $50 million in both debt and assets in Chapter 11 documents. Andronico's, founded in 1929 by Greek immigrant Frank Andronico, has struggled after the grocer took on a significant amount of debt in a bid to expand its operations. The expansion campaign failed due to the slumping economy, forcing it to close some stores. 7 Seven Stores to Remain Open According to Oakland Tribune, Andronico's said its seven stores will remain open and its 400 workers will stay on the job while the grocer attempts to work out its financial problems. The Company has four stores in Berkeley, as well as single stores in San Francisco, Los Altos and San Anselmo, and specializes in gourmet and other specialty foods, along with wine, kitchen gadgets and tableware. The chain moved its headquarters from Albany, New York, to San Francisco, California, earlier this year to cut costs. Hit by Competition Now in its third generation of family ownership, the Company was founded in 1929 by Frank Andronico, an immigrant from Greece. There was no assurance that the grocery would ultimately land the financing or complete a sale. Failure to land both could imperil the storied, high-end chain. Andronico's, according to Oakland Tribune, has not been able to update its stores to keep pace with the intensified competition and new stores by its rivals, Reynolds said. Even if the Company manages to shore up its finances, wide-ranging changes could be ahead, including more store closures and job losses, according to the Tribune. Andronico's said its restructuring plan should extricate the Company from its financial morass. In addition, the name is expected to survive. ARK DEVELOPMENT: Made Illegal Petition Date Transfers, Says BB&T ---------------------------------------------------------------- Branch Banking & Trust Company, a secured creditor of debtor Ark Development/Oceanview, LLC, is asking the U.S. Bankruptcy Court for the Southern District of Florida to order the appointment of a Chapter 11 trustee in the Debtor's Chapter 11 case. BB&T states that on May 15, 2011, it conducted a F.R.B.P. Rule 2004 examination of the Debtor and discovered that the Debtor made preferential transfers of assets of the Debtor's bankruptcy estate to affiliates on the Petition Date, in violation of the Debtor's fiduciary duty to creditors. BB&T notes that the Debtor's conduct exemplifies the Debtor's dishonesty, incompetence, and/or gross mismanagement of its business affairs. BB&T says that these Petition Date Transfers are sufficient cause for the court to appoint a Chapter 11 trustee. Counsel for BB&T may be reached at: Alan J. Perlman, Esq. Joshua B. Alper, Esq. ROETZEL & ANDRESS 350 E. Las Olas Boulevard, Suite 1150 Ft. Lauderdale, FL 33301 Tel: (954) 462-4150 Fax: (954) 462-4260 E-mail: aperlman@ralaw.com About Ark Development Ark Development/Oceanview LLC owns three luxury homes in Fort Lauderdale, Florida -- at 1431 North Atlantic Boulevard; 1427 North Atlantic Boulevard; and 1423 North Atlantic Boulevard. All three properties are in the final stages of the construction process. The Debtor estimates that the value of each property is roughly $4 million. Ark Development/Oceanview filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 11-20382) on April 18, 2011. Judge John K. Olson presides over the case. Philip J. Landau, Esq., at Shraiberg Ferrara & Landau, PA, in Boca Raton, Fla., represents the Debtor as counsel. In its schedules, the Debtor disclosed $12,017,522 in assets and $11,794,591 in liabilities as of the petition date. The U.S. Trustee has not appointed a committee of creditors for the Debtor's case. ARK DEVELOPMENT: Seeks Use of Rental Income to Maintain Property ---------------------------------------------------------------- Ark Development/Oceanview, LLC, asks the U.S. Bankruptcy Court for the Southern District of Florida for authority to use cash collateral of BB&T Mortgage. The Debtor will use the $11,000 in monthly rental income from a property at 1427 North Atlantic Boulevard, in Fort Lauderdale, Florida, in order to maintain the property. BB&T Mortgage is owed approximately $3,240,402 based on a first mortgage on the property. Philip J. Landau, Esq., at Shraiberg Ferrara & Landau, P.A., states that the Debtor will suffer harm if it is not authorized to use cash collateral to continue construction improvements associated with the 1427 Property. Without authorization, the Debtor will not be able to pay the expenses associated with completing the improvements associated with the property. Without the use of cash collateral to pay these expenses, it may lead to the vacancy of the Debtor's tenant, which would cause harm not only to the Chapter 11 estate but to the potential recovery of creditors. As adequate protection, the Debtor will grant in favor of BB&T a first priority post-petition security interest and lien in all of the Debtor's rental income from the Property. Mr. Landau tells the Court that the combination of: (i) the Debtor's ability to preserve the going concern value of the business with the use of cash collateral; and (ii) providing BB&T with the other protections adequately protects BB&T. According to Mr. Landau, the approval of the cash collateral will enable the Debtor to (i) continue the orderly operation of the property and avoid an immediate total shutdown of rental revenue; (ii) meet its operating expenses in relation to the property; and (iii) make payments authorized under other orders entered by this Court. About Ark Development Ark Development/Oceanview LLC owns three luxury homes in Fort Lauderdale, Florida -- at 1431 North Atlantic Boulevard; 1427 North Atlantic Boulevard; and 1423 North Atlantic Boulevard. All three properties are in the final stages of the construction process. The Debtor estimates that the value of each property is roughly $4 million. Ark Development/Oceanview filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 11-20382) on April 18, 2011. Judge John K. Olson presides over the case. Philip J. Landau, Esq., at Shraiberg Ferrara & Landau, PA, in Boca Raton, Fla., represents the Debtor as counsel. In its schedules, the Debtor disclosed $12,017,522 in assets and $11,794,591 in liabilities as of the petition date. The U.S. Trustee has not appointed a committee of creditors for the Debtor's case. ARRAY BIOPHARMA: Posts $56.3 Million Net Loss in Fiscal 2011 ------------------------------------------------------------ Array BioPharma Inc. filed its annual report on Form 10-K, reporting a net loss of $56.3 million on $71.9 million of revenue for the fiscal year ended June 30, 2011, compared with a net loss of $77.6 million on $53.9 million of revenue for fiscal 2010. The Company has incurred operating losses since inception and has an accumulated deficit as a result of ongoing research and development spending. As of June 30, 2011, the Company had an accumulated deficit of $547.2 million. The Company's balance sheet at June 30, 2011, showed $89.4 million in total assets, $220.2 million in total liabilities, and a stockholders' deficit of $130.8 million. A copy of the Form 10-K is available at http://is.gd/wXTMC4 About Array BioPharma Boulder, Colo.-based Array BioPharma Inc. (NASDAQ: ARRY) -- http://www.arraybiopharma.com/-- is a biopharmaceutical company focused on the discovery, development and commercialization of targeted small-molecule drugs to treat patients afflicted with cancer and inflammatory diseases. ATCONTACT COMMS: Judge Invites Appeal Over Sec. 365(d)(3) --------------------------------------------------------- Bankruptcy Judge Elizabeth E. Brown declined AtContact Communications LLC's request for reconsideration of a July 29, 2011 Order, which conditioned the Debtor's extension of time to assume or reject its non-residential lease with Echo Properties Corp. Judge Brown, however, suggested appellate review of her decision. The prior ruling was reported in the Aug. 2 edition of the Troubled Company Reporter. In her order, Judge Brown conditioned the extension of AtContact's 120-day period to assume or reject non-residential real property leases on the Debtor's timely performance of all obligations under its leases, until the time as it has assumed or rejected, as required by 11 U.S.C. Sec. 365(d)(3). Judge Brown said Sec. 365(d)(3) imposes a mandatory requirement that a debtor fully perform its obligations after the first 60 days of the case. The Court, however, invited the Debtor to file a motion to reconsider with case authority supporting the ability to waive the requirements of Sec. Sec. 365(d)(3). In the Motion to Reconsider, the Debtor did not provide any supporting case authority. Instead the Debtor argued that the requirement of Sec. 365(d)(3) was instituted for the benefit of the landlord and, therefore, the landlord should be allowed to waive its requirement. The Court acknowledged counsel's good argument, but held that the express language of subsection (d)(3) is written in mandatory terms (the "trustee shall timely perform all obligations of the debtor, . . . until such lease is assumed or rejected, notwithstanding section 506(b)(1) of this title.") According to Judge Brown, the final clause of the first sentence makes clear that the ability to give the landlord an administrative expense claim is not to be a substitute for full performance after the initial 60-day period. It even repeats in the second sentence: "but the time for performance shall not be extended beyond such 60-day period." In contrast, subsection (d)(4) expressly provides for a landlord's consent in the event that the debtor seeks a second extension. Thus, Congress knew how to provide for a landlord's consent, but it did not include such an exception in subsection (d)(3). The Debtor offered alternatively to treat the unpaid rent that will accrue each month as an unsecured loan. The Debtor asserted that the loan will be in the ordinary course of Debtor's business because EPC has accepted partial payments pre-petition. According to Judge Brown, what the Debtor has not acknowledged is that by virtue of Sec. 364(a) the unsecured post-petition "loan" would be entitled to an administrative expense priority claim. For whatever reason, Congress did not want debtors to suspend full performance beyond the initial 60-day period in reliance on Sec. 503(b)(1), the judge said. "This Court would be pleased to have a higher court tell it that it may read into subsection (d)(3) the Landlord's ability to consent to a waiver of timely performance of 'all' obligations under the lease," Judge Brown said. "Absent a binding precedent to this effect, the Court is compelled to apply the statute as written." A copy of Judge Brown's Aug. 19, 2011 Order is available at http://is.gd/3t39tcfrom Leagle.com. Based in Sedalia, Colorado, AtContact Communications, LLC, dba @contact and Contactmeo, filed for Chapter 11 bankruptcy (Bankr. D. Colo. Case No. 11-17175) on April 1, 2011. Lee M. Kutner, Esq. -- lmk@kutnerlaw.com -- at Kutner Miller Brinen, P.C., presides over the case. The Debtor did not indicate its assets in its petition, but estimated debts as under $10 million. The petition was signed by David M. Drucker, its manager. BERNARD L. MADOFF: Peter Madoff's Aston Martin Sells for $247,500 ----------------------------------------------------------------- Michael Bathon at Bloomberg News reports that an Aston Martin previously owned by Peter Madoff, brother of Bernard L. Madoff, sold at auction for $247,500 in Monterey, California, according to RM Auctions. The 1958 Aston Martin MK III Drophead Coupe was sold Aug. 19, Amy Christie, a spokeswoman for the auction house, said in an e-mail to Bloomberg News. An online sale catalog valued the car at $200,000 to $250,000. The proceeds will go to investors who lost as much as $19 billion in his brother's Ponzi scheme, according to Irving Picard, the trustee liquidating Bernard Madoff's firm in New York. Bernard Madoff's U.K. firm bought the car for Peter Madoff in 2008 for $267,000 and wasn't reimbursed for the expense, Mr. Picard said in a court filing. According to the report, the car, with a carriage green finish and tan upholstery and showing about 30,400 miles, is one of 84 Drophead Coupes built and has a "well-maintained older restoration," according to the catalog. It had servicing and "paintwork" in 2008 from Aston Workshop in the U.K. at a recorded 30,184 miles, RM said. The restoration has held up and the car performed well on a recent road test, it said in the catalog. Mr. Bathon recounts that Peter Madoff, sued by U.K. liquidators in 2009 for allegedly enriching himself unjustly by taking the Aston Martin, transferred ownership of the car to Mr. Picard on May 4, the trustee said in a filing. Mr. Picard said the car was auctioned with agreement from the U.K. liquidators. Peter Madoff was chief compliance officer at Bernard L. Madoff Investment Securities LLC. He was among those to whom Bernard Madoff confessed shortly before his arrest, according to Ira Sorkin, a lawyer for Bernard Madoff. Peter Madoff also co-signed Bernard Madoff's $10 million bond following the money manager's arrest. The $247,500 sales price includes the buyer's premium, Ms. Christie said in the e-mail to Bloomberg. 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. BESO LLC: Landry's Gets Court Approval to Operate Restaurant ------------------------------------------------------------ Bankruptcy Judge Mike Nakagawa signed off on the plans in which Landry's Restaurants Inc. will run Eva Longoria's Beso restaurant in Las Vegas until it's sold and advance it up to $300,000 to keep the struggling business afloat until it's sold. The report says Landry's hopes to buy Beso for $1 million plus whatever it spends to keep the business operating in the interim. According to the report, Judge Nakagawa in his order acknowledged dissident investors in Beso claim this is a sweetheart insider deal for Ms. Longoria because she'll have an ownership stake in the Landry's-led entity that will try to buy Beso out of bankruptcy. About Beso LLC Beso, LLC, co-owned by "Desperate Housewives" star Eva Longoria, filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 11-10202) on Jan. 6, 2011. Beso, LLC, runs a Las Vegas restaurant that opened two years ago. It disclosed assets of $2,512,007 and liabilities of $5,680,339 in the schedules attached to the Chapter 11 petition. Lenard E. Schwartzer, Esq., at Schwartzer & McPherson Law Firm, in Las Vegas, Nevada, serves as counsel to the Debtor. The petition was signed by William M. Braden, manager. BIOVEST INTERNATIONAL: Posts $1.8 Million Net Loss in June 30 Qtr. ------------------------------------------------------------------ Biovest International, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $1.8 million on $1.1 million of revenues for the three months ended June 30, 2011, compared with net income of $9.0 million on $1.6 million of revenues for the same period ended June 30, 2010. The Company reported a net loss of $13.4 million on $3.1 million of revenues for the nine months ended June 30, 2011, compared with a net loss of $12.3 million on $4.2 million of revenues for the same period ended June 30, 2010. The Company's balance sheet at June 30, 2011, showed $6.7 million in total assets, $37.9 million in total liabilities, and a stockholders' deficit of $31.2 million. As of June 30, 2011, the Company had an accumulated deficit of approximately $159.3 million and working capital of approximately $1.2 million. This figure does not include those liabilities which are subject to compromise through the Company's Chapter 11 proceedings, the ultimate outcome of which is expected to be determined by the Court prior to the quarter ending March 31, 2012. As reported in the Troubled Company Reporter on Dec. 20, 2010, Cherry, Bekaert & Holland, L.L.P., in Tampa, Fla., expressed substantial doubt about Biovest International's ability to continue as a going concern, following the Company's results for the fiscal year ended Sept. 30, 2010. The independent auditors noted that the Company incurred cumulative net losses since inception of roughly $149 million and cash used in operating activities of roughly $2.7 million during the two years ended Sept. 30, 2010, and had a working capital deficiency of roughly $79.6 million at Sept. 30, 2010. A copy of the Form 10-Q is available at http://is.gd/v0L6do About Biovest International Biovest International, Inc. -- http://www.biovest.com/-- is an emerging leader in the field of active personalized immunotherapies. In collaboration with the National Cancer Institute, Biovest has developed a patient-specific, cancer vaccine, BiovaxID(R), with three clinical trials completed, including a Phase III study, demonstrating evidence of safety and efficacy for the treatment of indolent follicular non-Hodgkin's lymphoma. Headquartered in Tampa, Florida, with its bio-manufacturing facility based in Minneapolis, Minnesota, Biovest is publicly- traded on the OTCQB(TM) Market with the stock-ticker symbol "BVTI", and is a majority-owned subsidiary of Accentia Biopharmaceuticals, Inc. (OTCQB: "ABPI"). Biovest, along with its subsidiaries, Biovax, Inc., AutovaxID, Inc., Biolender, LLC, and Biolender II, LLC, filed for Chapter 11 bankruptcy protection on Nov. 10, 2008 (Bankr. M.D. Fla. Case No. 08-17796). As reported in the Troubled Company Reporter on Nov. 19, 2010, Biovest emerged from Chapter 11 protection, and its reorganization plan became effective, on Nov. 17, 2010. BLUE DOLPHIN ENERGY: Incurs $413,900 2nd Quarter Net Loss --------------------------------------------------------- Blue Dolphin Energy Company filed its quarterly report on Form 10-Q, reporting a net loss of $413,934 on $620,402 of revenues for the three months ended June 30, 2011, compared with a net loss of $369,937 on $483,591 of revenues for the same period last year. The Company reported a net loss of $846,022 on $1.3 million of revenues for the six months ended June 30, 2011, compared with a net loss of $895,691 on $931,700 of revenues for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $5.1 million in total assets, $3.3 million in total liabilities, and stockholders' equity of $1.8 million. As reported in the TCR on April 8, 2011, UHY LLP, in Houston, Texas, expressed substantial doubt about Blue Dolphin's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered recurring losses and negative cash flows from operations. A copy of the Form 10-Q is available at http://is.gd/YsPC0W Houston, Tex.-based Blue Dolphin Energy Company (OTC QB: BDCO) -- http://www.blue-dolphin.com/ -- is engaged in the gathering and transportation, as well as the exploration and production, of oil and natural gas. CAPMARK FINANCIAL: Aims to Implement $4-Bil. Plan by Sept. 30 ------------------------------------------------------------- Michael Bathon at Bloomberg News reports that Capmark Financial Group Inc. won court approval to exit bankruptcy by giving creditors cash, stock and new debt worth a total of almost $4 billion. U.S. Bankruptcy Judge Kevin Gross said he would sign an order approving the plan this week after minor wording changes are made to the documents. The report relates that under the Plan, the Debtor will reorganize around its Utah-based bank and will be owned by creditors, including unsecured noteholders and lenders. Those creditors voted overwhelmingly in favor of the Plan. Creditors will split $900 million in cash, new debt securities of $1.25 billion and stock in the reorganized company, estimated to be worth about $1.83 billion. The Company may implement the Plan and pay the creditors by Sept. 30, said a Capmark attorney, according to the report. "It was clear that it was an extremely intricate case," said Judge Gross, who presided over the hearing because U.S. Bankruptcy Judge Christopher Sontchi wasn't available. Sale Abandoned Dow Jones' Daily Bankruptcy Review reports that Judge Gross indicated he'd sign off on a final confirmation order to be submitted on Monday that calls for the reorganized Capmark to dole out about $4 billion in cash, new stock and new debt securities to its unsecured creditors, who will take control of the company. The report says, earlier this month, the Company abandoned plans to sell its stake in the bank due to more market turmoil. On paper, the bank accounts for an estimated $1.29 billion of the value of the reorganized company. Under the Plan, Capmark will hand out $900 million to unsecured creditors in cash plus $1.25 billion worth of new debt securities and stock in a reorganized company that has an "implied value" of $1.8 billion, according to Capmark bankruptcy lawyer Michael Kessler of the law firm of Dewey & LeBoeuf. That will be stretched over unsecured debts estimated at about $7 billion, for a partial recovery for many creditors, plan documents say. Shareholders are due to get nothing under the plan. 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: Meeting of Creditors Scheduled for Sept. 26 -------------------------------------------------------- Bloomberg News reports that a meeting of creditors in the Chapter 11 case of Casco Hotel Group LLC is scheduled for Sept. 26. Casco Hotel Group LLC, a unit of bankrupt Congressional Hotel Corp., filed for Chapter 11 bankruptcy protection (Bankr. D. Md. Case No. 11-26880) on Aug. 17, 2011, in Greenbelt, Maryland. The single-asset real estate company declared assets and liabilities each in the range of $10 million to $50 million. Two days earlier, Congressional Hotel filed for reorganization (Case No. 11-26832) in the same court, listing Mervis Diamond Corp. of Vienna, Virginia, as its largest unsecured creditor, with a claim of $3.96 million. CATHOLIC CHURCH: Wilmington Wins Confirmation of Ch. 11 Plan ------------------------------------------------------------ The Catholic Diocese of Wilmington, Inc., on August 8, 2011, submitted to the U.S. Bankruptcy Court for the District of Delaware a revised Chapter 11 Plan conforming to the Court's July 28, 2011 order confirming the Diocese's Second Amended Chapter 11 Plan of Reorganization. Among the changes contained in the Conforming Plan are additional disclosures regarding: -- the partial escrow of the NDCE settlement contribution. Cash amounting $61,968,441 plus interest accrued from and after an "Interest Shift Date" on the escrowed settlement funds and less any amounts paid by the Debtor will be contributed to the Settlement Trust by or on behalf of the Non-Debtor Catholic Entities in consideration for, and conditioned upon (1) each holder of a survivor claim who represented by State Court Counsel, absent further order of the Court, executing a release of the Debtor and the Non- Debtor Catholic Entities from the Survivor Claim in a form reasonably acceptable to the Debtor and Catholic Diocese Foundation. The release will be effective upon the funding of the Settlement Trust with the NDCE Settlement Contribution and the Insurer Settlement Contribution. From and after the Interest Shift Date, $50,000,000 of the NDCE Settlement Contribution on deposit in the Settlement Account will be deemed to be held "in custodia legis" for the benefit of the Settlement Trust and holders of Class 3A Claims, subject to the funding of the Settlement Trust. -- the treatment of lay pension claims. The Conforming Plan provides that the Reorganized Debtor will execute a fully- secured, unsubordinated promissory note amounting $15,000,000 in favor of the Lay Pension Plan Trusts; -- the settlement trust agreement or the settlement trust distribution. The Conforming Plan provides that any holder of a Survivor Claim is required to execute a release of the Debtor and the Non-Debtor Catholic Entities to execute a release before receiving any distribution; and -- enjoinment of the Debtor and the Non-Debtor Catholic Entities from providing any money, salary, wages, pensions, and benefits to priests accused of sexual abuse. A blackline copy of the Conforming Plan is available for free at: http://bankrupt.com/misc/WilConfPlanBlk.pdf Clean copies of the Confirming Plan and exhibits are available for free at: http://bankrupt.com/misc/WilConfPln.pdf http://bankrupt.com/misc/WilConfPln_EXA.pdf http://bankrupt.com/misc/WilConfPln_EXB.pdf http://bankrupt.com/misc/WilConfPln_EXC.pdf http://bankrupt.com/misc/WilConfPln_EXD.pdf http://bankrupt.com/misc/WilConfPln_EXE.pdf http://bankrupt.com/misc/WilConfPln_EXF.pdf As previously reported, Judge Christopher Sontchi entered his order approving the Diocese's Plan -- which aims to pay approximately $77.4 million to people who were sexually abused by priests -- after a four-day confirmation hearing. Before signing the order, Judge Sontchi remarked that the Diocese of Wilmington Chapter 11 case was the most difficult case he had to deal with. Meanwhile, Bishop Malooly is inviting sexual abuse survivors to meet with him and discuss further "healing and reconciliation," The Dialog said in its August 4, 2011 issue. Bishop Malooly's Statement The Most Reverend W. Francis Malooly, Bishop of the Catholic Diocese of Wilmington, issued on July 28 the following statement on the United States Bankruptcy Court's approval of the Catholic Diocese of Wilmington, Inc. Plan of Reorganization: I am pleased that the United States Bankruptcy Court has approved the Catholic Diocese of Wilmington's Plan of Reorganization enabling us to emerge from Chapter 11 bankruptcy. It is my hope and prayer that this plan will give survivors of clergy sexual abuse another means toward the healing that they so need and deserve, and enable us to live up to our commitments to our lay employees and creditors. When we filed for Chapter 11 reorganization in October of 2009, our goals were to justly and fairly compensate all survivors of clergy sexual abuse while maintaining, to the best of our ability, the charitable, spiritual and educational ministries of our parishes, schools and other institutions. As we emerge from Chapter 11, I feel that these goals have been reached. The Diocese of Wilmington will continue to assure that our parishes and schools are safe havens for our precious young people. We will continue to comply with the letter and spirit of the Charter for the Protection of Children and Young People adopted by the Catholic Bishop of the United States in 2002. I reiterate the pledges that I made to survivors of sexual abuse at my Mass of Installation on September 8, 2008. I again apologize for the innocence that was stolen from our brothers and sisters at the hands of men who were supposed to be looking out for their best spiritual interests. I invite any and all survivors to meet with me to discuss how I as Bishop and we as Church can promote further healing and reconciliation. Today marks a moment of transition for our diocese. The road ahead will not be an easy one, but I have experienced the spirit of the Catholic community of Delaware and the Eastern Shore of Maryland and I am optimistic that together, with God's help, we have a bright future. I ask for your continued prayers and support as we learn from the past and move ahead in to our mission. God bless you. Most Rev. W. Francis Malooly Bishop of Wilmington Plan Appeal Kenneth Martin and Charles W. Wiggins, two priests accused of sexual abuse, took separate appeals to the U.S. District Court for the District of Delaware from Judge Sontchi's July 28, 2011 order confirming the Catholic Diocese of Wilmington, Inc.'s Chapter 11 Plan. About the Diocese of Wilmington The Diocese of Wilmington covers Delaware and the Eastern Shore of Maryland and serves about 230,000 Catholics. The Delaware diocese is the seventh Roman Catholic diocese to file for Chapter 11 protection to deal with lawsuits for sexual abuse. Previous filings were by the dioceses in Spokane, Washington; Portland, Oregon; Tucson, Arizona; Davenport, Iowa, Fairbanks, Alaska; and San Diego, California. The Diocese filed for Chapter 11 protection (Bankr. D. Del. Case No. 09-13560) on Oct. 18, 2009. Attorneys at Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Diocese. The Ramaekers Group, LLC, is the financial advisor. The petition says assets range $50 million to $100 million while debts are between $100 million to $500 million. The bankruptcy filing automatically stayed eight consecutive abuse trials scheduled in Delaware scheduled to begin Oct. 19, 2009. There were 131 cases filed against the Diocese, with 30 scheduled for trial, as of the bankruptcy filing. CATHOLIC CHURCH: Wilm. Removal Period Extended Until Oct. 23 ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Delaware has extended the Diocese of Wilmington, Inc.'s deadline to file notices of removal of any actions pending as of the Petition Date through and including October 23, 2011. The Court's order is without prejudice to the Diocese's right to seek further extensions. About the Diocese of Wilmington The Diocese of Wilmington covers Delaware and the Eastern Shore of Maryland and serves about 230,000 Catholics. The Delaware diocese is the seventh Roman Catholic diocese to file for Chapter 11 protection to deal with lawsuits for sexual abuse. Previous filings were by the dioceses in Spokane, Washington; Portland, Oregon; Tucson, Arizona; Davenport, Iowa, Fairbanks, Alaska; and San Diego, California. The Diocese filed for Chapter 11 protection (Bankr. D. Del. Case No. 09-13560) on Oct. 18, 2009. Attorneys at Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Diocese. The Ramaekers Group, LLC, is the financial advisor. The petition says assets range $50 million to $100 million while debts are between $100 million to $500 million. The bankruptcy filing automatically stayed eight consecutive abuse trials scheduled in Delaware scheduled to begin Oct. 19, 2009. There were 131 cases filed against the Diocese, with 30 scheduled for trial, as of the bankruptcy filing. CATHOLIC CHURCH: Automatic Stay for Wilm. Parishes Extended ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware has ruled that the existing automatic stay is again extended to the Parish Corporation with respect to all pending actions arising under the Delaware Child Victim's Act of 2001 in which the Diocese of Wilmington, Inc. and a Parish Corporation are co-defendants. The Court's order was entered after the Diocese certified that no objections were filed as of August 8, 2011. About the Diocese of Wilmington The Diocese of Wilmington covers Delaware and the Eastern Shore of Maryland and serves about 230,000 Catholics. The Delaware diocese is the seventh Roman Catholic diocese to file for Chapter 11 protection to deal with lawsuits for sexual abuse. Previous filings were by the dioceses in Spokane, Washington; Portland, Oregon; Tucson, Arizona; Davenport, Iowa, Fairbanks, Alaska; and San Diego, California. The Diocese filed for Chapter 11 protection (Bankr. D. Del. Case No. 09-13560) on Oct. 18, 2009. Attorneys at Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Diocese. The Ramaekers Group, LLC, is the financial advisor. The petition says assets range $50 million to $100 million while debts are between $100 million to $500 million. The bankruptcy filing automatically stayed eight consecutive abuse trials scheduled in Delaware scheduled to begin Oct. 19, 2009. There were 131 cases filed against the Diocese, with 30 scheduled for trial, as of the bankruptcy filing. CAVIATA ATTACHED: Wants to Use Rental Income for Operating Costs ---------------------------------------------------------------- Caviata Attached Homes, LLC, asks the U.S. Bankruptcy Court for the District of Nevada authority to use cash collateral generated by a 184-unit apartment complex located at 950 Henry Orr Parkway in Sparks, Nevada. On Sept. 20, 2005, the Debtor entered into a loan agreement with California National Bank for $40,700,000 for the construction of the Property. Cal National was taken over by the FDIC on Oct. 31, 2009, and its assets and liabilities were acquired by U.S. Bank. The Debtor wants to use the cash collateral to pay certain obligations in operating and maintaining the Property, in accordance with a budget. The Debtor also seeks authorization to deviate from the budget amounts for actual expenditures not to exceed 10% of the aggregate monthly budgeted amounts without further court approval. The Debtor will make adequate protection payments to U.S. Bank in the amount of $120,000. Alan R. Smith, Esq., representing Caviata Attached Homes, tells the Court that the Debtor does not have the ability to meet the ongoing postpetition obligations with respect to maintaining and preserving the real property and paying the monthly operating expenses unless they can have the immediate ability to use cash collateral to pay the monthly expenses. Mr. Smith states that the value of the Debtor's assets can only be maximized through continued leasing of the Property. He contends that the Property cannot continue to be leased if this Debtor is not permitted to use cash collateral to pay its operating expenses. A shutdown and immediate liquidation of the Debtor's business would occur if this Debtor is not permitted to use cash collateral to pay its operating expenses, and would harm the Debtor, its estate and its creditors. About Caviata Attached Homes Reno, Nevada-based Caviata Attached Homes LLC owns and operates a 184-unit apartment complex located at 950 Henry Orr Parkway in Sparks, Nevada, 89436 Caviata Attached Homes filed for Chapter 11 bankruptcy (Bankr. D. Nev. Case No. 11-52458) on Aug. 1, 2011. Judge Bruce T. Beesley presides over the case. The Law Offices of Alan R. Smith, Esq., serves as bankruptcy counsel. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by William D. Pennington, II, member of Caviata 184, LLC. There was a prior bankruptcy filing by Caviata Attached Homes (Bankr. D. Nev. Case No. 09-52786) on Aug. 18, 2009, also estimating $10 million to $50 million in both assets and debts. Alan R. Smith, Esq., also represented the 2009 Debtor. CENTRAL FEDERAL: Posts $1.91-Mil. Second Quarter Net Loss --------------------------------------------------------- Central Federal Corporation filed its quarterly report on Form 10- Q, reporting a net loss of $1.9 million on $1.6 million of net interest income (before provision for loan losses) for the three months ended June 30, 2011, compared with a net loss of $5.6 million on $2.2 million of net interest income (before provision for loan losses) for the same period of 2010. The Company reported a net loss of $3.8 million on $3.4 million of net interest income for the six months ended June 30, 2011, compared with a net loss of $5.9 million on $4.4 million of net interest income for the same period last year. The Company's balance sheet at June 30, 2011, showed $277.8 million in total assets, $265.5 million in total liabilities, and stockholders' equity of $12.3 million. A copy of the Form 10-Q is available at http://is.gd/Jmt1TC Regulatory Matters On May 25, 2011, the Holding Company and CFBank each consented to the issuance of an Order to Cease and Desist (the Holding Company Order and the CFBank Order, respectively, and collectively, the Orders) by the Office of Thrift Supervision (OTS), the primary regulator of the Holding Company and CFBank at the time the Orders were issued. In July 2011, in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act), the Board of Governors of the Federal Reserve System replaced the OTS as the primary regulator of the Holding Company and the Comptroller of the Currency replaced the OTS as the primary regulator of CFBank. The Holding Company's Order requires it, among other things, to: (i) submit by June 30, 2011, a capital plan to regulators that establishes a minimum tangible capital ratio commensurate with the Holding Company's consolidated risk profile, reduces the risk from current debt levels and addresses the Holding Company's cash flow needs; (ii) not pay cash dividends, redeem stock or make any other capital distributions without prior regulatory approval; (iii) not pay interest or principal on any debt or increase any Holding Company debt or guarantee the debt of any entity without prior regulatory approval; (iv) obtain prior regulatory approval for changes in directors and senior executive officers; and (v) not enter into any new contractual arrangement related to compensation or benefits with any director or senior executive officer without prior notification to regulators. The CFBank Order requires CFBank to have by Sept. 30, 2011, and maintain thereafter, 8% Tier 1 (Core) Capital to adjusted total assets and 12% Total Capital to risk weighted assets. At June 30, 2011, CFBank's Tier 1 (Core) Capital to adjusted total assets ratio was 5.4%, and its Total Capital to risk weighted assets ratio was 10.1%. About Central Federal Fairlawn, Ohio-based Central Federal Corporation (Nasdaq: CFBK) is the holding company for CFBank, a federally chartered savings association formed in Ohio in 1892. CFBank has four full-service banking offices in Fairlawn, Calcutta, Wellsville and Worthington, Ohio. COATES INTERNATIONAL: Incurs $536,000 Net Loss in Second Quarter ---------------------------------------------------------------- Coates International, Ltd., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $536,179 on $125,000 of sales for the three months ended June 30, 2011, compared with a net loss of $497,232 on $0 of sales for the same period during the prior year. The Company also reported a net loss of $1.08 million on $125,000 of sales for the six months ended June 30, 2011, compared with a net loss of $44,668 on $0 of sales for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $3.03 million in total assets, $3.80 million in total liabilities, and a $762,745 total stockholders' deficiency. The Company reported a net loss of $1.05 million on $159,000 of sales for the year ended Dec. 31, 2010, compared with a net loss of $806,756 on $0 of sales during the prior year. As of June 30, 2011, the Company had an accumulated deficit of $24,785,000 and had negative working capital of $2,789,000. In addition, the current economic environment, which is characterized by tight credit markets, investor uncertainty about how to safely invest funds and low investor confidence, has introduced additional risk and difficulty in the Company's challenge to secure needed additional working capital. Meyler & Company, LLC, in Middletown, New Jersey, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company continues to have negative cash flows from operations, recurring losses from operations, and a stockholders' deficiency. A full-text copy of the Form 10-Q is available for free at: http://is.gd/MtC6g7 About Coates International Based in Wall Township, N.J., Coates International, Ltd. (OTC BB: COTE) -- http://www.coatesengine.com/-- was incorporated on August 31, 1988, for the purpose of researching, patenting and manufacturing technology associated with a spherical rotary valve system for internal combustion engines. This technology was developed over a period of 15 years by Mr. George J. Coates, who is the President and Chairman of the Board of the Company. The Coates Spherical Rotary Valve System (CSRV) represents a revolutionary departure from the conventional poppet valve. It changes the means of delivering the air and fuel mixture to the firing chamber of an internal combustion engine and of expelling the exhaust produced when the mixture ignites. COMCAM INTERNATIONAL: Delays Filing of Quarterly Report ------------------------------------------------------- Comcam International, Inc., said it cannot complete its Form 10-Q within the prescribed time period as management is unable to complete a review of its consolidated financial statements by Aug. 15, 2011. The delay cannot be cured without unreasonable effort or expense. In accordance with Rule 12b-25 under the Securities Exchange Act of 1934, the Company anticipates filing its Form 10-Q no later than five calendar days following the prescribed due date. About ComCam International West Chester, Pa.-based ComCam International, Inc. is both a network solutions innovator and a provider of fusion technologies for security products and modern networks. The Company's proprietary digital wireless camera systems and security integration solutions address complex command-and-control applications for rapid-deployment military situations, borders, ports, airports, and detention facilities. The Company reported a net loss of $1.35 million on $3.55 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $430,648 on $24,086 of revenue during the prior year. The Company's balance sheet at March 31, 2011, showed $2.49 million in total assets, $2.14 million in total liabilities, and $350,911 in total stockholders' equity. As reported by the TCR on April 21, 2011, Pritchett, Siler & Hardy, P.C., in Salt Lake City, Utah, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that ComCam International, Inc., and Subsidiary has incurred substantial losses and has a working capital deficit. CONSOL ENERGY: S&P Puts 'BB' on Watch Positive After Noble Deal --------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on coal and natural gas producer Consol Energy Inc., including the 'BB' corporate credit rating, on CreditWatch with positive implications. The CreditWatch listing follows Consol's announcement that it has entered into an agreement with Noble Energy Inc. to jointly develop Consol's 633,350 acres of Marcellus Shale holdings in Pennsylvania and West Virginia for aggregate consideration of approximately $3.4 billion. "The positive implications on the CreditWatch listing indicate that we could affirm the rating or raise it following the conclusion of our analysis," said Standard & Poor's credit analyst Marie Shmaruk. Key assessments in the review include the company's use of proceeds from the Noble transaction, its revised spending plans, and the impact the transaction could have on Standard & Poor's view of its overall business risk profile. "We think the deal with Noble could strengthen Consol's financial profile if it uses a portion of the proceeds to lower debt levels and if the transaction lessens the need for additional borrowings to develop the company's large Marcellus holdings," Ms. Shmaruk continued. The current 'BB' corporate credit rating on Consol reflects the combination of what Standard & Poor's considers to be the company's satisfactory business risk profile, aggressive financial risk profile, and adequate liquidity. The company is an efficient producer of underground coal, has a significant reserve base, and benefits from diversifying its energy production. Consol is a major Appalachian energy producer with 4.4 billion tons of coal reserves and 3.7 trillion cubic feet equivalent (tcfe) of proved gas reserves. The company produced approximately 62 million tons of coal and about 128 billion cubic feet equivalent (bcfe) of gas in 2010. CONVERSION SERVICES: June 30 Balance Sheet Upside Down by $3.84MM ----------------------------------------------------------------- Conversion Services International, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income of $3,126 on $3.91 million of revenue for the three months ended June 30, 2011, compared with a net loss of $64,240 on $4.64 million of revenue for the same period during the prior year. The Company also reported a net loss of $708,018 on $7.36 million of revenue for the six months ended June 30, 2011, compared with a net loss of $481,350 on $9.62 million of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $3.07 million in total assets, $6.91 million in total liabilities, and a $3.84 million total stockholders' deficit. The Company reported a net loss of $771,753 on $17.72 million of revenue for the year ended Dec. 31, 2010, compared with net income of $31,956 on $24.19 million of revenue during the prior year. Friedman LLP expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's financial reports for 2009 and 2010. The accounting firm noted that the Company has incurred recurring operating losses, negative cash flows, is not in compliance with a covenant associated with its Line of Credit, maturing on March 31, 2011 and has significant future cash flow commitments. A full-text copy of the Form 10-Q is available for free at: http://is.gd/lgzNvc About Conversion Services Int'l Conversion Services International, Inc., and its wholly owned subsidiaries are principally engaged in the information technology services industry in these areas: strategic consulting, business intelligence/data warehousing and data management to its customers principally located in the northeastern United States. CSI was formerly known as LCS Group, Inc. In January 2004, CSI merged with and into a wholly owned subsidiary of LCS. In connection with this transaction, among other things, LCS changed its name to "Conversion Services International, Inc." COYOTES HOCKEY: Glendale Won't Sell Bonds to Facilitate Sale ------------------------------------------------------------ Mike Sunnucks at the Phoenix Business Journal reports that the city of Glendale said it would not try to sell bonds to help facilitate a sale of the Phoenix Coyotes to a new owner. According to the report, the city issued a statement saying it was talking to two "qualified" ownership groups who want to buy the Coyotes and keep the team in Arizona. "As indicated in June, the City of Glendale has identified two qualified buyers for the Coyotes team and is looking forward to finalizing documents with qualified buyers. No bonds will be sold by the city as part of these proposed concepts. As always, ongoing negotiations are confidential," Glendale city spokeswoman Julie Frisoni said in a statement. The report says one of those groups is headed by former San Jose Sharks president, CEO and minority owner Greg Jamison. Jamison could put earnest money down next week on a Coyotes purchase and ink the parameters of a sales deal with the National Hockey League, which owns the team. That would give him exclusive rights to work out a Coyotes sale with the league and Glendale. Glendale unsuccessfully tried to sell bonds to help Chicago investment broker Matthew Hulsizer buy the Coyotes earlier this year, but that bid failed after the Goldwater Institute watchdog groups promised a lawsuit challenging the legality of the bond sale, notes the Phoenix Business Journal. Jamison's group hopes to move next week on an agreement with the NHL that could set the stage for a final acquisition of the team after league approval, a new arena lease with Glendale and any necessary financing. The NHL bought the Coyotes out of Chapter 11 bankruptcy for $140 million in October 2009. Mr. Jamison was Sharks president for 15 years. About Coyotes Hockey Dewey Ranch Hockey LLC, Arena Management Group, LLC, Coyotes Holdings, LLC, and Coyotes Hockey, LLC -- owners and affiliates of the Phoenix Coyotes National Hockey League team -- filed for Chapter 11 protection (Bankr. D. Ariz. Case No. 09-09488) on May 5, 2009. The Debtors are represented by Thomas J. Salerno, Esq., at Squire, Sanders & Dempsey, LLP, in Phoenix, and estimate their assets and liabilities are between $100 million and $500 million. In the third quarter of 2009, Judge Redfield T. Baum approved the sale of the Phoenix Coyotes to the National Hockey League, which had bought the team to quash a plan by bidder Jim Balsillie's to move the team to Ontario, Canada. Coyotes was sent to Chapter 11 to effectuate a sale by owner Jerry Moyes to Mr. Balsillie. The city of Glendale owns Jobing.com Arena, where the team plays. CRYOPORT INC: Incurs $2 Million Net Loss in Second Quarter ---------------------------------------------------------- CryoPort, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $2.05 million on $123,751 of net revenues for the three months ended June 30, 2011, compared with a net loss of $1.32 million on $151,460 of net revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $8.68 million in total assets, $4.59 million in total liabilities, and $4.08 million in total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/R0ptoM About CryoPort Inc. Headquartered in Lake Forest, Calif., CryoPort, Inc. (OTC BB: CYRXD) -- http://www.cryoport.com/-- provides innovative cold chain frozen shipping system dedicated to providing superior, affordable cryogenic shipping solutions that ensure the safety, status and temperature of high value, temperature sensitive materials. The Company has developed a line of cost-effective reusable cryogenic transport containers capable of transporting biological, environmental and other temperature sensitive materials at temperatures below 0-degree Celsius. At Sept. 30, 2010, the Company had total assets of $5.37 million, total liabilities of $5.53 million, and a stockholders' deficit of $153,700. KMJ Corbin & Company LLP expressed substantial doubt about CryoPort's ability to continue as a going concern, following the Company's fiscal 2009 results. The firm noted that the Company has incurred recurring losses and negative cash flows from operations since inception. CYTOCORE INC: Incurs $492,000 Net Loss in Second Quarter -------------------------------------------------------- CytoCore, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $492,000 on $7,000 of net revenues for the three months ended June 30, 2011, compared with a net loss of $293,000 on $8,000 of net revenues for the same period during the prior year. The Company also reported a net loss of $990,000 on $14,000 of net revenues for the six months ended June 30, 2011, compared with a net loss of $762,000 on $16,000 of net revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $1.78 million in total assets, $6.22 million in total liabilities, all current, and a $4.44 million total stockholders' deficit. The Company has incurred significant operating losses since its inception. Management expects that significant on-going operating expenditures will be necessary to successfully implement CCI's business plan and develop, manufacture and market its products. These circumstances raise substantial doubt about CCI's ability to continue as a going concern. The Company reported a net loss of $2.09 million on $30,000 of net sales for the year ended Dec. 31, 2010, compared with a net loss of $3.55 million on $44,000 of net sales during the prior year. As reported by the TCR on April 18, 2011, L J Soldinger Associates LLC, in Deer Park, Illinois, said in its audit report on the financial statements for the year ended Dec. 31, 2010, that the Company's recurring losses from operations and resulting dependence upon access to additional external financing, raise substantial doubt concerning 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/mOBti4 About Cytocore Inc. Headquartered in Chicago, Illinois, CytoCore Inc. (OTC BB: CYOE) -- http://www.cytocoreinc.com/-- is a biomolecular diagnostics company engaged in the design, development, and commercialization of cost-effective screening systems to assist in the early detection of cancer. CytoCore(R) is currently focused on the design, development, and marketing of its CytoCore Solutions(TM) System and related image analysis platform. The CytoCore Solutions(TM) System and associated products are intended to detect cancer and cancer-related diseases, and may be used in a laboratory, clinic, or doctor's office. CYTOMEDIX INC: Incurs $791,000 Second Quarter Net Loss ------------------------------------------------------ Cytomedix, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $791,361 on $1.39 million of total revenues for the three months ended June 30, 2011, compared with a net loss of $2.25 million on $1.14 million of total revenues for the same period a year ago. The Company also reported a net loss of $2.20 million on $2.76 million of total revenues for the six months ended June 30, 2011, compared with a net loss of $3.32 million on $1.32 million of total revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $7.96 million in total assets, $5.45 million in total liabilities, and $2.51 million in total stockholders' equity. As reported in the TCR on April 5, 2011, PricewaterhouseCoopers LLP, in Baltimore, expressed substantial doubt about Cytomedix, Inc.'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 insufficient liquidity to fund its ongoing operations. The Company's ability to raise additional capital is dependent on, among other things, the state of the financial markets at the time of any proposed offering. Given the current state of the financial markets, the ability to raise capital may be significantly diminished. The Company is also exploring potential strategic partnerships, which could provide a capital infusion to the Company. In the event the Company is unable to successfully sustain and increase product sales and obtain additional capital, it is unlikely that the Company will have sufficient cash flows and liquidity to finance its business operations as currently contemplated. Accordingly, if the Company determines it will not be able to obtain the necessary financing to address its working capital needs for a reasonable period into the future, it may pursue alternative paths forward for the Company. These paths could include, but not be limited to, sale of the Company or its assets, merger, organized wind-down, going private/dark, fundamental shift in its strategic plan, bankruptcy, etc. A full-text copy of the Form 10-Q is available for free at:' http://is.gd/mtBW7Z About Cytomedix Gaithersburg, Md.-based Cytomedix, Inc., develops, sells, and licenses regenerative biological therapies intended to aid the human body in regenerating/healing itself, to primarily address the areas of wound care and orthopedic surgery. "In the event the Company is unable to successfully sustain and increase product sales and obtain additional capital, it is unlikely that the Company will have sufficient cash flows and liquidity to finance its business operations as currently contemplated," the Company said in the filing. "Accordingly, if the Company determines it will not be able to obtain the necessary financing to address its working capital needs for a reasonable period into the future, it may pursue alternative paths forward for the Company. These paths could include, but not be limited to, sale of the Company or its assets, merger, organized wind-down, going private/dark, fundamental shift in its strategic plan (e.g. abandon commercialization strategy and focus exclusively on licensing), bankruptcy, etc." DAMON'INT'L: Franchise, Franchisor Assets Up for Sale ----------------------------------------------------- Damon's International has put up its franchise, all of its related franchisor assets and all of its company owned locations for sale. Background & Overview Damon's Grill was founded in 1979 as a full-service, casual dining restaurant with a menu emphasizing steaks, chicken, seafood, salad and award-winning ribs in a sports-bar dining atmosphere. Based in Columbus, OH, Damon's has 5 company-owned stores (4 in Ohio and 1 in Maryland) and 26 franchised locations primarily in the regional states around Ohio. On October 28, 2009, Damon's International, Inc. commenced its bankruptcy case by filing a voluntary petition for relief under Chapter 11 of the Bankruptcy Code. On January 29, 2010 the operating subsidiaries of Damon's filed for Chapter 11. The Opportunity The Debtor will sell the franchise, all of its related franchisor assets and all of its company owned locations to one or more parties and will continue in a franchisor-only business model going forward, focusing on the brand and divesting all restaurant operations to franchisees. To execute on this strategy; to realize certain tax benefits and to potentially monetize the value in a below-market lease associated with the Maryland operation, the Debtor has determined to first sell its remaining locations in Ohio and Maryland at auction and then sell the franchisor business. FRANCHISOR Upon selling the corporate owned stores and converting them to franchisees, Damon's will have a franchisor only model and focus on growing the brand and concept. There will be initially 31 locations in 10 states. These locations posted nearly $50 million in system wide gross sales for the FYE June 30, 2011. On a pro forma go-forward basis the royalty income from those stores represent significant income with little corporate overhead. The chain has the potential to grow again with additional capital used to stabilize the brand and concept and refresh the marketing and stores. There are numerous former employees and operators that could re-join the brand in addition to select new franchisee expansion. At its peak, the company had 160 owned and franchised restaurant locations in the U.S. and U.K. ($ in 000's) FYE 6/30/10 Five Corporate Owned Store Sales $8,506 Twenty Six Franchisee Store Sales 40,475 Total System-Wide Sales $48,981 Pro Forma Franchisor Revenue* $1,779 Coporate SG&A** (527) EBITDA $1,252 * Comprised of contract royalty % and production fund **Management estimate The Debtor is seeking a stalking horse bid and the highest and best offer for the franchisor at auction and will submit that bid to the Court at a sale hearing date to be determined. FOUR OWNED OHIO RESTAURANTS The main value of the Assets to be acquired will come from the Buyers continued operation of the Restaurants either as a franchisee or through conversion. ($ in 000's) Sales EBITDA Ohio Restaurants FY'10 FY'09 FY'08 FY'10 FY'09 FY'08 Canton $1,543 $1,515 $1,916 ($139) ($74) ($96) Mentor 1,103 1,065 1,427 (33) (49) (66) Middleburg Heights 1,532 1,646 2,163 (32) (15) (4) Sandusky 1,796 1,768 2,202 78 158 149 Total $5,975 $5,994 $7,709 ($125) $21 ($17) The Company has received a bid that is subject to higher and better offers. Pursuant to the terms of the offer, the following locations and all property of the Debtor located at the locations, will be acquired: * 17887 Bagley Road, Cleveland, OH 44130 (Middleburg Heights); * 9500 Diamond Center Drive, Mentor, OH (Mentor); * 701 East Water Street, Sandusky, OH 44870 (Sandusky); and * 4220 Belden Village Street NW, Canton, OH (Canton) Pursuant to the terms of the offer, the consideration to be provided is: * $12,000 per location, and; * Entry into a Franchise Agreement with the Debtor on mutually agreeable terms. * The bid received includes an inherent present value of the future royalty stream from the franchisee. Pursuant to the terms of the offer, the proposed buyer's obligation to acquire the restaurants is contingent on: * Financing acceptable to the Buyer; * The Debtor executing mutually acceptable Franchise Agreements for each of the four locations; * Agreement with the respective landlords on the terms of lease acceptable to Buyer; and * The Sale of the assets being free and clear of lien claims and encumbrances. The proposed sale of the Acquired Assets to the Buyer shall be subject to higher and better offers that may be submitted for the assets at a hearing currently scheduled by the Court for August 30, 2011 to consider the sale of the Acquired Assets to the Buyer or a Successful Bidder. ONE OWNED MARYLAND RESTAURANT/ LEASE The Maryland owned location is 7051 Arundel Mills Blvd, Hanover (Arundel Mills), MD 21076, in the Hanover/ Arundel Mills development area across the street from the proposed Maryland Live! Casino. The Debtor entered the lease before the proposed casino was initiated and thus believe they have a very attractive below-market lease with a long term (over 35 years) remaining on the lease agreement. The lease in a attractive strategic location and is estimated to be significantly below current market rents based on area comparables. $ in 000's Sales EBITDA Maryland FY'10 FY'09 FY'08 FY'10 FY'09 FY'08 Arundel Mills (Hanover) $2,532 $2,682 $3,586 $43 $95 $275 *Store was taken over from franchisee in October 2008. To obtain more information in addition to the Non-Disclosure Agreement, contact the undersigned Advisors to the Company: Peter S. Hartheimer Managing Director NHB Advisors, Inc. 405 Lexington Avenue 26th Floor New York, NY 10174 (845) 323-1267 (mobile) peter.hartheimer@nhbteam.com Michael Savage, CTP, CIRA Managing Director NHB Advisors, Inc. 60 State Street Boston, MA 02109 (617) 973-7158 (mobile) (617) 973-5105 (office) michael.savage@nhbteam.com About Damon's Grill and Max & Erma's Before filing for bankruptcy, Max & Erma's owned a chain of 106 restaurants located in Pennsylvania, Ohio, and Michigan, with a few in Chicago, Washington, Atlanta, and Kentucky. Max & Erma's Restaurant, Inc., filed a Chapter 11 petition (Bankr. W.D. Pa. Case No. 09-27807) in Oct. 2009. At the time of the filing, the Debtor estimated its assets and debts at less than $10 million. Damon's International Inc., had Damon's Grill restaurants in 50 locations in 15 states in the U.S. and the United Kingdom before it sought bankruptcy protection. Damon's sought Chapter 11 protection (Bankr. W.D. Pa. Case No. 09-___) in October 2009, estimating $1 million to $10 million in assets and debts. Both Damon's Grill and Max & Erma's are owned by G&R Acquisitions, Inc. G&R sent Damon's and Max & Erma's to Chapter 11 to protect its stock from being taken over by creditor National City, a unit of PNC Financial Services Group Inc. DELAMORE ELIZABETH: Major Tenant's Exit Doesn't Pose Threat ----------------------------------------------------------- Ben Sutherly and Tim Tresslar at Dayton Daily News reports that the owner of Elizabeth Place said the pending departure of one of the building's primary tenants doesn't pose a major threat. According to the report, Delamore Elizabeth Place LP has 820,000 square feet of leasable space in the former St. Elizabeth's Hospital property, a complex of eight connected buildings at 601 Edwin C. Moses Blvd. The report says Delamore paid $46.7 million for the property in March 2007, just before the office real estate market nosedived. When it filed for bankruptcy protection, it reportedly owed $49.25 million on a mortgage. Delamore has continued to bleed red ink. According to a July 19 filing in U.S. Bankruptcy Court, the Debtor had collected $12.27 million in revenues from October 2009 through June 30, but has had total expenses of $13 million, for a loss of $732,216. About Delamore Elizabeth Delamore Elizabeth Place LP is the owner of the Elizabeth Place medical and office building in Dayton, Ohio. The project is a development by the Delamore Cos. Delamore's Web site says it acquired over one million square feet of commercial space in the first half of 2007, which means they bought at the top of the market. The Company filed for Chapter 11 protection on Oct. 1, 2009 (Bankr. S.D. Ohio Case No. 09-36187). Tim J. Robinson, Esq., represents the Debtor in its restructuring efforts. The Company estimated assets between $10 million and $50 million, and debts between $50 million and $100 million. DESERT OASIS: Amends Disclosure Statement Prior to Hearing ---------------------------------------------------------- Desert Oasis Apartments, LLC, filed with the U.S. Bankruptcy Court for the District of Nevada an amended plan of reorganization and an accompanying disclosure statement on Aug. 16, 2011. Payments and distributions under the Plan will be funded by the rent paid by tenants and by sale or refinancing at or before the end of 10 years. The Debtor asserts that there is substantial equity in the Property in excess of the debt to the Bank and that the Property could have been easily be refinanced. However, due to the alleged lien of Tom Gonzales and the current economic situation in which there are almost no loans for commercial property in Las Vegas available, which makes immediate refinancing unavailable. Desert Oasis Apartments will be managed post-confirmation by David Gaffin, who is currently managing the Debtor. The Amended Plan classifies claims into five classes: A. Class 1 (Administrative Expenses and Priority Claims) - To be paid in full on the effective date of the Plan. B. Class 2 (Bank Secured Claim) - To be paid its pre-petition claim within 10 years from the Effective Date of the Plan, with interest at 4.5% per annum from the Petition Date. The principal and interest payment would be approximately $17,250 per month, plus a $2,253,000 balloon payment at the end of 10 years. The payments will be sourced from rent collected from tenants and from the proceeds of sale or refinancing or from a capital investment made by the owners of the equity interest. C. Class 3 (Gonzales Claim) - Tom Gonzales will be paid the Parcel A Transfer Fee pursuant to the terms of the Desert Land Plan of Reorganization. D. Class 4 (General Unsecured Claims) - Non-Insider General Unsecured Creditors will be paid in full at $3,000 per month pro rata for 12 months. General unsecured claims of insiders have agreed to subordinate their claims and will be paid only after all other unsecured creditors are paid in full. E. Class 5 (Equity Interest Holders) - Equity holders will retain their interest in the Debtor. Hearing to consider approval of the disclosure statement is scheduled for Aug. 23, 2011, at 10:00 a.m. A full-text copy of the amended Disclosure Statement is available for free at http://bankrupt.com/misc/DESERTOASIS_disclosurestatement.pdf About Desert Oasis Apartments Desert Oasis Apartments LLC owns a garden-style apartment complex situated across the boulevard from the Mandalay Bay Resort. The apartment complex is valued at least $6,500,000. Secured creditor Wells Fargo set a trustee's sale on the apartment complex for May 11, 2011, but Desert Oasis sought bankruptcy protection (Bankr. D. Nev. Case No. 11-17208) the day before the sale. Lenard E. Schwartzer, Esq., at Schwartzer & McPherson Law Firm, serves as the Debtor's bankruptcy counsel. The Company disclosed $18,067,242 in assets and $20,291,316 in liabilities as of the Chapter 11 filing. DEX ONE: Cut by S&P to 'B-' as Business "Remains Under Pressure" ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Cary, N.C.-based Dex One Corp. and related entities to 'B-' from 'B'. The rating outlook is negative. "At the same time, we lowered the issue-level rating on Dex Media East's $753 million outstanding term loan and Dex Media West's $640 million outstanding term loan to 'B-'. The recovery ratings remain at '4', indicating our expectation of average (30% to 50%) recovery for lenders in the event of a payment default," S&P related. "In addition, we revised our issue-level rating on R.H. Donnelley Inc.'s $981 million outstanding variable-rate term loan due 2014 to 'B-' from 'B'. The recovery rating on this loan is '4', indicating our expectation of average (30% to 50%) recovery for lenders in the event of a payment default," S&P stated. "In addition, we lowered the rating on Dex One Corp.'s subordinated $300 million notes due 2017 to 'CCC' from 'CCC+'. The recovery rating remains at '6', indicating our expectation of negligible recovery (0%-10%) in the event of a payment default," S&P related. "The corporate credit rating and outlook reflect our view that Dex One's business will remain under pressure, given the unfavorable outlook for print directory advertising and weakening economy," said Standard & Poor's credit analyst Chris Valentine. Dex One is a leading marketing services company that helps local businesses reach potential clients primarily through print and digital (approximately 14% of sales) advertising. Additionally, the company offers online and mobile yellow pages advertising. Dex One competes primarily with major search engines, such as Google, Yahoo!, BING and others, in addition to a growing number of local online shopping-related sites, including industry- specific online websites, such as ServiceMagic.com and others. Moreover, Dex One has not been able to convert a significant portion of its print customer relationships into digital customers. As result, its customer base and advertising sales continue to contract at a double-digit percentage pace. Consumers' ongoing shift away from use of print yellow pages could impair the company's ability to maintain or increase future advertising prices. The negative outlook reflects Standard & Poor's expectation that Dex One's declining business fundamentals could hinder refinancing of its 2014 $2.30 billion debt maturity. DIAMOND RANCH: Incurs $306,800 Net Loss in June 30 Quarter ---------------------------------------------------------- Diamond Ranch Foods, Ltd., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $306,853 on $1.25 million of net revenues for the three months ended June 30, 2011, compared with a net loss of $292,981 on $2.21 million of net revenues for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $1.09 million in total assets, $6.46 million in total liabilities and a $5.36 million total stockholders' deficit. The Company reported a net loss of $547,732 on $7.16 million of net revenues for the fiscal year ended March 31, 2011, compared with a net loss of $829,823 on $8.54 million of net revenues during the prior year. Gruber & Company, LLC, in Lake Saint Louis, Missouri, noted that the Company has suffered recurring losses from operations that raise substantial doubt about its ability to continue as a going concern. Prior to the filing of the Form 10-Q, the Company notified the SEC regarding the late filing of its quarterly report. The Company said it did not provide its auditors with all of the information necessary for the auditors to complete the review of the financial statements prior to the date on which the Form 10-Q was required to be filed. A full-text copy of the Form 10-Q is available for free at: http://is.gd/Kqje5h About Diamond Ranch Diamond Ranch Foods, Ltd. -- http://www.diamondranchfoods.com/-- is a meat processing and distribution company now located in the Hunts Point Coop Market, Bronx, New York. The Company's operations consist of packing, processing, labeling, and distributing products to a customer base, including, but not limited to; in-home food service businesses, retailers, hotels, restaurants, and institutions, deli and catering operators, and industry suppliers. DIGITILITI INC: Delays Filing of Quarterly Report on Form 10-Q -------------------------------------------------------------- Digitiliti, Inc., notified the U.S. Securities and Exchange Commission that it will be late in filing its quarterly report on Form 10-Q for the period ended June 30, 2011. The Company is in the process of completing its unaudited financial statements. About Digitiliti, Inc. St. Paul, Minnesota-based Digitiliti, Inc.'s business is developing and delivering storage technologies and methodologies enabling its customers to manage, control, protect and access their information and data with ease. The Company's core business is providing a cost effective on-line data protection solution to the small to medium business ("SMB") and small to medium enterprise ("SME") markets through its DigiBAK service. This on- line data protection solution helps organizations properly manage and protect their entire network from one centralized location. The Company reported a net loss of $6.41 million on $2.14 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $5.17 million on $3.19 million of revenue during the prior year. As reported by the TCR on April 18, 2011, MaloneBailey, LLP, in Houston, Texas, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company has suffered losses from operations and has a working capital deficit. The Company's balance sheet at March 31, 2011, showed $1.26 million in total assets, $2.64 million in total liabilities, and a $1.38 million total stockholders' deficit. DREIER LLP: Trustee Says Clients Same as Ponzi Investors -------------------------------------------------------- Eric Hornbeck at Bankruptcy Law360 reports that two former Dreier LLP clients can't receive more money from the bankrupt law firm's estate than investors in the Ponzi scheme run by imprisoned attorney Marc Dreier, the Dreier trustee told the Second Circuit on Monday. Law360 relates that the Sheila M. Gowan, the Chapter 11 trustee for the estate of Dreier LLP, said Dreier client Paul Gardi and his company Alex Interactive Media LLC, who want the Dreier estate to pay them $6.3 million that Dreier allegedly stole after orchestrating a bogus settlement between them and investment firm JANA Partners LLC, are in the same boat as all other creditors. About Dreier LLP Marc Dreier founded New York-based law firm Dreier LLP -- http://www.dreierllp.com/-- in 1996. On Dec. 8, 2008, the U.S. Securities and Exchange Commission filed a suit, alleging that Mr. Dreier made fraudulent offers and sales of securities in several cities, selling fake promissory notes to hedge and other private investment funds. The SEC asserted that Mr. Dreier also distributed phony financial statements and audit opinions, and recruited accomplices in connection with that scheme. Mr. Dreier, currently in prison, was charged by the U.S. government for conspiracy, securities fraud and wire fraud (S.D.N.Y. Case No. 09- cr-00085). Dreier LLP sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 08-15051) on Dec. 16, 2008. Stephen J. Shimshak, Esq., at Paul, Weiss, Rifkind, Wharton & Garrison LLP, was tapped as counsel. The Debtor estimated assets of $100 million to $500 million, and debts between $10 million and $50 million in its Chapter 11 petition. Sheila M. Gowan, a partner with Diamond McCarthy, was appointed Chapter 11 trustee. Wachovia Bank National Association, the Chapter 11 trustee, and Steven J. Reisman as post-confirmation representative of the bankruptcy estate of 360networks (USA) Inc. signed a petition that put Mr. Dreier into bankruptcy under Chapter 7 on Jan. 26, 2009 (Bankr. S.D.N.Y. Case No. 09-10371). Mr. Dreier, 60, pleaded guilty to fraud and other charges in May 2009. The scheme to sell $700 million in fake notes unraveled in late 2008. Mr. Dreier is serving a 20-year sentence in a federal prison in Minneapolis. DUTCH GOLD: Incurs $1.4 Million Net Loss in Second Quarter ---------------------------------------------------------- Dutch Gold Resources, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $1.41 million on $0 of revenue for the three months ended June 30, 2011, compared with a net loss of $815,859 on $0 of revenue for the same period during the prior year. The Company also reported a net loss of $2.60 million on $0 of revenue for the six months ended June 30, 2011, compared with a net loss of $1.80 million on $0 of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $3.41 million in total assets, $7.08 million in total liabilities, and a $3.67 million total stockholders' deficit. As of June 30, 2011, the Company had cash on hand of $21,425, investments available for sale of $366,645, a working capital deficit of approximately $5.2 million and has incurred a loss from operations for the six months ended June 30, 2011. The Company reported a net loss of $3.70 million on $0 of revenue for the year ended Dec. 31, 2010, compared with a net loss of $11.33 million on $0 of revenue during the prior year. As reported, Hancock Askew & Co., LLP, in Atlanta, Georgia, 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 limited liquidity and has incurred recurring losses from operations. A full-text copy of the Form 10-Q is available for free at: http://is.gd/J9iqdQ About Dutch Gold Based in Atlanta, Ga., Dutch Gold Resources, Inc. (OTC: DGRI) -- http://www.dutchgoldresources.com/-- is a junior gold miner focused on developing its existing mining properties in North America and acquiring and developing new mines that can enter into production in 12 to 24 months. EAT AT JOE'S: Reports $153,000 Net Income in Second Quarter ----------------------------------------------------------- Eat at Joe's Ltd. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting net income of $152,647 on $163,881 of revenue for the three months ended June 30, 2011, compared with a net loss of $178,881 on $290,525 of revenue for the same period a year ago. The Company also reported net income of $11,929 on $334,973 of revenue for the six months ended June 30, 2011, compared with a net loss of $364,479 on $572,651 of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $2.43 million in total assets, $5.67 million in total liabilities, and a $3.24 million total stockholders' deficit. As reported by the TCR on April 6, 2011, Robison, Hill & Co., in Salt Lake City, Utah, after auditing the Company's financial statements for the year ended Dec. 31, 2010, 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. A full-text copy of the Form 10-Q is available for free at: http://is.gd/ykhdaW About Eat at Joe's Scarsdale, N.Y.-based Eat at Joe's, Ltd., presently owns and operates one theme restaurant located in Philadelphia, Pennsylvania. EDINBURG INVESTMENTS: Plans to Complete Business Venture in Ch. 11 ------------------------------------------------------------------ Preston Knight at Northern Virginia Daily reports that Edinburg Investments LLC, the owner of the former Johns Manville manufacturing plant in Edinburg, filed for Chapter 11 bankruptcy, canceling an auction and providing extra time to establish a business venture that has been two years in the making. According to the report, Kevin Moyer, owner and president of Valley Wood Products Inc. in Luray, said plans to move his business from Page County to the shuttered building on Johns Manville Road in 2009 fell apart when he lost an investor. Now, he thinks he has found a new investor to rejuvenate his goal -- an alternative energy company from India interested in manufacturing wood pellets for heating houses. Mr. Moyer, who is its managing member, said he was able to cancel the auction and get several more weeks to complete his business deal. Based in Edinburg, Virginia, Edinburg Investments, LLC, filed for Chapter 11 bankruptcy protection (Bankr. W.D. Va. Case No. 11- 51167) on Aug. 15, 2011. Judge Ross W. Krumm presides over the case. A. Carter Magee, Jr., Esq., at Magee Goldstein Lasky & Sayers, P.C., represents the Debtor. The Debtor estimated both assets and debts between $1 million and $10 million. ELBIT VISION: Posts $302,000 Second Quarter Net Income ------------------------------------------------------ Elbit Vision Systems Ltd. reported net income of $302,000 on US$1.42 million of revenue for the three months ended June 30, 2011, compared with net income of $4.51 million on $641,000 of revenue for the same period a year ago. The Company also reported net income of $532,000 on $2.67 million of revenue for the six months ended June 30, 2011, compared with net income of $2.39 million on $1.12 million of revenue for the same period during the prior year, The Company's balance sheet at June 30, 2011, showed $2.53 million in assets, $4.79 million in liabilities, and a $2.26 million shareholders' deficit. Sam Cohen, CEO of EVS commented, "As we expected, these historic second quarter results show the fourth consecutive profitable quarter for EVS. These results, more than the previous three, are truly significant because it ended the one year anniversary of the new EVS management team with an accumulated EBITDA of $1.35 million after years of devastating losses. Furthermore, we are very encouraged by the early interest in the launch of our new products in the coming months, which we believe, together with our marketing efforts, will enable us to expand into previously unreachable markets. This is further evidence that EVS's best years are ahead of us!" concluded Mr. Cohen. A full-text copy of the press release announcing the financial results is available for free at http://is.gd/R2j9CN About Elbit Vision Based in Caesarea, Israel, Elbit Vision Systems Ltd. (OTC BB: EVSNF.OB) offers a broad portfolio of automatic State-of-the-Art Visual Inspection Systems for both in-line and off-line applications, and process monitoring systems used to improve product quality, safety, and increase production efficiency. Brightman Almagor Zohar & Co., in Tel Aviv, Israel, expressed substantial doubt about Elbit Vision Systems' ability to continue as a going concern. The independent auditors noted that of the Company's recurring losses from operations and accumulated deficit. The Company reported net income of $2.6 million on $3.9 million of revenues for 2010, compared with a net loss of $7.7 million on $2.2 million of revenues for 2009. Loss for the year before discontinued operation was $863,000 and $2.1 million for 2010 and 2009, respectively. ELITE PHARMACEUTICALS: Has $30.7-Mil. Net Loss in June 30 Quarter ----------------------------------------------------------------- Elite Pharmaceuticals, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss attributable to common shareholders of $30.73 million on $989,976 of total revenues for the three months ended June 30, 2011, compared with a net loss attributable to common shareholders of $4.77 million on $831,920 of total revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $11.49 million in total assets, $50.33 million in total liabilities, and a $38.84 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/tOMsRH About Elite Pharmaceuticals Northvale, New Jersey-based Elite Pharmaceuticals, Inc., is a specialty pharmaceutical company principally engaged in the development and manufacture of oral, controlled-release products, using proprietary technology and the development and manufacture of generic pharmaceuticals. The Company has one product, Phentermine 37.5mg tablets, currently being sold commercially. Demetrius & Company, L.L.C., in Wayne, New Jersey, expressed substantial doubt about Elite Pharmaceuticals' ability to continue as a going concern. The independent auditors noted that the Company has experienced significant losses resulting in a working capital deficiency and shareholders' deficit. The Company reported a net loss of $13.6 million on $4.3 million of revenues for the fiscal year ended March 31, 2011, compared with a net loss of $8.1 million on $3.3 million of revenues for the fiscal year ended March 31, 2010. ENER1 INC: Robbins Umeda Commences Probe on Possible Breaches ------------------------------------------------------------- Robbins Umeda LLP, a shareholder rights litigation firm, has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Ener1, Inc. Ener1, together with its subsidiaries, engages in the design, development, and manufacturing of rechargeable lithium-ion batteries and battery pack systems for energy storage in the United States and South Korea. The company was founded in 1985, and is headquartered in New York, New York. If you invested in Ener1 and would like more information about your shareholder rights, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or via the shareholder information form on our website. Robbins Umeda LLP's investigation focuses on whether the directors and officers of Ener1 harmed the company and investors by issuing improper statements to the public that have damaged the company's value and reputation. Beginning on January 10, 2011, officials at the company issued statements to investors that may have failed to reflect adverse material facts about the inability of Think Holdings AS, one of Ener1's leading subsidiaries, to continue operating and to fulfill substantial outstanding loans obligations due to Ener1. As a result, on August 16, 2011, Ener1 issued a press release announcing that the company was forced to restate its financial statements for the year ended December 31, 2010, and the quarter ended March 31, 2011. On this news, shares of Ener1 declined $0.33, or 42.1%, to close on August 16, 2011 at just $0.45 per share. Notably, on Friday August 19, 2011, the company received a Notice of Delisting from the NASDAQ stating that Ener1 was not in compliance with its continued listing requirements because the company did not timely file its quarterly report for the quarter ended June 30, 2011. The company has until October 17, 2011, to regain compliance and in the interim has been placed on the NASDAQ's list of non-complaint companies. Robbins Umeda LLP represents individual and institutional shareholders in derivative, direct, and class action lawsuits. The law firm's skilled litigation teams include former federal prosecutors, former defense counsel from top multinational corporate law firms, and career shareholder rights attorneys. About Ener1 Inc. Ener1 Inc. (OTCBB: ENEI) -- http://www.ener1.com/-- has three business lines, which the company conducts through three operating subsidiaries. EnerDel, an 80.5% owned subsidiary, which is 19.5% owned by Delphi, develops Li-ion batteries, battery packs and components such as Li-ion battery electrodes and lithium electronic controllers for lithium battery packs. EnerFuel develops fuel cell products and services. NanoEner develops technologies, materials and equipment for nanomanufacturing. * * * At Dec. 31, 2007, the company's consolidated balance sheet showed $31.3 million in total assets, $29.7 million in total liabilities, and $8.6 million in redeemable convertible stock, resulting in a $7.0 million total stockholders' deficit. EVERGREEN SOLAR: Gets Letter From NASDAQ on Late Form 10-Q ---------------------------------------------------------- Evergreen Solar, Inc., a manufacturer of String Ribbon(R) solar power products with its proprietary, low-cost silicon wafer technology, received a letter from The Nasdaq Listing Qualifications Staff on August 17, 2011, notifying the Company that it is currently not in compliance with Nasdaq Marketplace Rule 5250(c)(1) because it has not filed its report on Form 10-Q for the quarter ended July 2, 2011 in a timely manner. As previously disclosed, the Company has received an additional notice from Nasdaq as a result of having filed a voluntary petition in the United States Bankruptcy Court for the District of Delaware seeking relief under the provisions of Chapter 11 of the Bankruptcy Code (Case No. 11-12590). The Company does not plan to appeal Nasdaq's determination to delist the Company's common stock and, as a result, trading of the Company's common stock will be suspended at the opening of business on August 24, 2011. 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. FENTON SUB: Meeting of Creditors Continued Until Today ------------------------------------------------------ The U.S. Trustee for Region 12 has continued until today, Aug. 24, 2011, at 1:30 p.m. the meeting of creditors in the Chapter 11 cases of Fenton Sub Parcel D, LLC, and Bowles Sub Parcel D, LLC. The meeting will be held in Room 1017, U.S. Courthouse, 300 South Fourth Street, Minneapolis, Minnesota. Fenton Sub Parcel D LLC and Bowles Sub Parcel D LLC jointly own industrial multi-tenant properties located in the Twin Cities. They are controlled by StoneArch II/WCSE Minneapolis Industrial LLC. StoneArch is the 100% member of Bowles Subsidiary, LLC and of Fenton Subsidiary LLC. Bowles Subsidiary LLC is then the 100% member of Bowles Sub Parcel D LLC, and Fenton Subsidiary LLC is the 100% member of Fenton Sub Parcel D, LLC. In 2007, StoneArch acquired various LLCs, which in turn owned 27 industrial multi-tenant properties located in the Twin Cities. The properties were divided into four separate pools: A, B, C, and D. Fenton Sub Parcel D and Bowles Sub Parcel D jointly own the properties in pool D. As tenants in common, Fenton Sub Parcel D has an undivided 74.5394% interest and Bowles Sub Parcel D has an undivided 25.4606% interest. The Pool D Properties consist of six parcels of real property located in Anoka, Dakota, and Hennepin Counties, Minnesota. The Debtors expect the Pool D Properties to be worth $13,135,656 as of the Petition Date. Although they are two separate legal entities, Fenton Sub Parcel D and Bowles Sub Parcel D have consistently been treated as one enterprise. Hoyt Properties, Inc., acts as agent in managing the Pool D Properties. Fenton Sub Parcel D and Bowles Sub Parcel D filed for Chapter 11 bankruptcy (Bankr. D. Minn. Case Nos. 11-44430 and 11-44434) on June 29, 2011. The Debtors' petitions were signed by Steven Bruce Hoyt, chief manager, who is a debtor in bankruptcy case number 11-43816. He is separately represented by Michael C. Meyer of the firm Ravich Meyer. The cases were originally assigned to Judge Dennis D. O'Brien and reassigned to Judge Robert J. Kressel as the cases are related to the Hoyt case, which was filed earlier and assigned to Judge Kressel. Cynthia A. Moyer, Esq., James L. Baillie, Esq., and Sarah M. Gibbs, Esq., at Fredrikson & Byron, PA, represent the Debtors. GSC GROUP: Employee Wants D&O Policy to Cover SEC Defense --------------------------------------------------------- Lisa Uhlman at Bankruptcy Law360 reports that a GSC Group Inc. employee accused of letting a hedge fund sell complex mortgage- backed securities to unwitting investors asked Friday that the judge overseeing the investment management firm's bankruptcy let him use a Lexington Insurance Co. policy to fund his defense. According to Law360, Edward S. Steffelin is seeking the directors and officers coverage in his defense against the U.S. Securities and Exchange Commission's civil securities fraud suit alleging that he let Magnetar Capital LLC select and short the collateralized debt obligations in a $1.1 billion offering. About GSC Group Florham Park, New Jersey-based GSC Group, Inc. -- http://www.gsc.com/-- is a private equity firm specializing in mezzanine and fund of fund investments. Originally named Greenwich Street Capital Partners Inc. when it was a subsidiary of Travelers Group Inc., GSC became independent in 1998 and at one time had $28 billion of assets under management. Market reverses, termination of some funds, and withdrawal of customers' investments reduced funds under management at the time of bankruptcy to $8.4 billion. GSC Group filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 10-14653) on Aug. 31, 2010. Michael B. Solow, Esq., at Kaye Scholer LLP, serves as the Debtor's bankruptcy counsel. Epiq Bankruptcy Solutions, LLC, is the Debtor's notice and claims agent. Capstone Advisory Group, LLC, is the Debtor's financial advisor. The Debtor estimated its assets at $1 million to $10 million and debts at $100 million to $500 million as of the Chapter 11 filing. Since Jan. 7, 2011, the Debtors have been operated by James L. Garrity Jr., as Chapter 11 trustee for the Debtors. No committee of unsecured creditors has been appointed in the Chapter 11 Cases. GUARANTY FINANCIAL: Trustee Sues Temple-Inland, D&Os for $1-Bil. ---------------------------------------------------------------- The trustee for Guaranty Financial Group Inc. has sued former parent Temple-Inland Inc. in Texas for allegedly siphoning the bank's assets and forcing it to acquire risky mortgage-backed securities before spinning off the "doomed-to-fail" entity. Kenneth L. Tepper, the trustee and Federal Deposit Insurance Corp. assignee, is seeking to recoup more than $1 billion that Guaranty's creditors lost after the bank collapsed. The Wall Street Journal's Robin Sidel reports that Mr. Tepper contends Temple-Inland loaded up the bank with risky securities and siphoned nearly $600 million in dividends from its coffers. The lawsuit seeks more than $1 billion in damages from Temple- Inland in connection with the 2009 failure of Guaranty Bank. The suit also names a handful of former and current executives and directors of Temple-Inland and Guaranty, some of whom held positions at both companies. The Journal also reports that Temple-Inland issued a statement saying it "believes the suit has no merit" and it will defend itself "vigorously." The company also cited a recent securities filing in which it noted that the trustee might file a claim against it related to Guaranty's failure. "As a result of the process we followed in connection with the spinoff, we do not believe that we would have any liability related to the spinoff of Guaranty Financial Group," the company said in the filing. About Guaranty Financial Dallas, Texas-based Guaranty Financial Group Inc. -- http://www.guarantygroup.com/-- was a unitary savings and loan holding company. The Company's primary operating entities were Guaranty Bank and Guaranty Insurance Services, Inc. Guaranty Financial filed for bankruptcy after the Guaranty bank was seized by regulators and sent to receivership under the Federal Deposit Insurance Corporation. Before the bank was taken over, the balance sheet of the holding company had $15.4 billion in assets as of Sept. 30, 2008. Guaranty Financial and its affiliates filed for Chapter 11 (Bankr. N.D. Tex. Case No. 09-35582) on Aug. 27, 2009. Attorneys at Haynes & Boone, LLP, served as the Debtors' bankruptcy counsel. According to the schedules attached to its petition, the Company disclosed $24.3 million in total assets and $323.4 million in total debts, including $305.0 million in trust preferred securities. The bulk of Guaranty's remains were acquired by BBVA Compass, the U.S. division of Banco Bilbao Vizcaya Argentaria SA of Spain. Guaranty Financial received approval of its Second Amended Joint Plan of Liquidation on May 11, 2011. The Plan was declared effective later that month. The Plan is based on a settlement with the FDIC and the indenture trustee for the noteholders. The Plan calls for the FDIC to receive some of the remaining cash and all of the tax refunds, which are estimated at $3.49 million. Unsecured creditors with $382 million in claims stand to recover between 1% and 3%, depending on whatever is collected by a liquidating trust. The unsecured creditors may get more if lawsuits are successful. Among the unsecured claims, $318 million stem from trust preferred securities. All shares of common stock of Guaranty Financial Group were deemed cancelled. Kenneth Tepper serves as Plan trustee. He is represented by law firm Duane Morris LLP in Cherry Hill, N.J. GUARANTY FINANCIAL: KBW Shorted Clients' Shares, Trustee Says ------------------------------------------------------------- Kaitlin Ugolik at Bankruptcy Law360 reports that financial adviser Keefe Bruyette & Woods Inc. was sued Monday in Texas for allegedly breaching a contract and illegally using nonpublic information when it shorted shares of clients Guaranty Financial Group Inc. and Guaranty Bank, contributing to their demise. According to Law360, Kenneth L. Tepper, liquidation trustee for the Guaranty Liquidation Trust, claims KBW violated confidentiality agreements when it used material information to short 180,000 GFG shares at a time when it should have been helping the struggling company raise capital. About Guaranty Financial Dallas, Texas-based Guaranty Financial Group Inc. -- http://www.guarantygroup.com/-- was a unitary savings and loan holding company. The Company's primary operating entities were Guaranty Bank and Guaranty Insurance Services, Inc. Guaranty Financial filed for bankruptcy after the Guaranty bank was seized by regulators and sent to receivership under the Federal Deposit Insurance Corporation. Before the bank was taken over, the balance sheet of the holding company had $15.4 billion in assets as of Sept. 30, 2008. Guaranty Financial and its affiliates filed for Chapter 11 (Bankr. N.D. Tex. Case No. 09-35582) on Aug. 27, 2009. Attorneys at Haynes & Boone, LLP, serve as the Debtors' bankruptcy counsel. According to the schedules attached to its petition, the Company disclosed $24.3 million in total assets and $323.4 million in total debts, including $305.0 million in trust preferred securities. As reported in the TCR on May 13, 2011, the Bankruptcy Court, on May 11, 2011, confirmed the Debtors Second Amended Joint Plan of Liquidation. On May 13, 2011, the Debtors filed a Notice of Effective Date of the Plan with the Bankruptcy Court. As a result of the Plan being declared effective, the Company's existing equity interests, including all issued, unissued, authorized, or outstanding shares of stock, together with any warrants, options, or contractual rights to purchase or acquire such equity securities at any time and all rights arising with respect thereto, or partnership, limited liability company, or similar interests, have been canceled without consideration as of the Effective Date and have no value. No shares are being reserved for future issuance in respect of claims and interests filed and allowed under the Plan. Therefore, all existing equity interests, including common stock, of the Company are worthless. GUIDED THERAPEUTICS: Incurs $496,000 Net Loss in Second Quarter --------------------------------------------------------------- Guided Therapeutics, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $496,000 on $913,000 of service revenue for the three months ended June 30, 2011, compared with a net loss of $559,000 on $805,000 of service revenue for the same period during the prior year. The Company also reported a net loss of $1.22 million on $1.68 million of service revenue for the six months ended June 30, 2011, compared with a net loss of $1.93 million on $1.62 million of service revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $3.31 million in total assets, $2.91 million in total liabilities, and $410,000 in stockholders' equity. The Company reported a net loss of $2.84 million on $3.36 million of contract and grant revenue for the year ended Dec. 31, 2010, compared with a net loss of $6.21 million on $1.55 million of contract and grant revenue during the prior year. As reported by the TCR on April 4, 2011, UHY LLP, in Atlanta, Georgia, noted that the Company's recurring losses from operations, accumulated deficit and lack of working capital raise substantial doubt about its ability to continue as a going concern. On Aug. 12, 2011, the Company held its annual meeting of stockholders in Norcross, Georgia. Six directors were elected at the Annual Meeting, namely: (1) Mark L. Faupel, Ph.D., (2) Ronald W. Hart, Ph.D., (3) Michael C. James, (4) John E. Imhoff, M.D, (5) Ronald W. Allen, and (6) Jonathan M. Niloff. The appointment of UHY LLP as the Company's independent registered public accounting firm for the 2011 fiscal year was ratified. A full-text copy of the Form 10-Q is available for free at: http://is.gd/xAw38R About Guided Therapeutics Guided Therapeutics, Inc. (OTC BB and OTC QB: GTHP) -- http://www.guidedinc.com/-- is developing a rapid and painless test for the early detection of disease that leads to cervical cancer. The technology is designed to provide an objective result at the point of care, thereby improving the management of cervical disease. Unlike Pap and HPV tests, the device does not require a painful tissue sample and results are known immediately. GT has also entered into a partnership with Konica Minolta Opto to develop a non-invasive test for Barrett's Esophagus using the LightTouch technology platform. HALO COMPANIES: Incurs $1.2 Million Second Quarter Net Loss ----------------------------------------------------------- Halo Companies, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $1.27 million on $809,737 of revenue for the three months ended June 30, 2011, compared with a net loss of $675,836 on $2.05 million of revenue for the same period a year ago. The Company also reported a net loss of $2.40 million on $1.66 million of revenue for the six months ended June 30, 2011, compared with a net loss of $1.48 million on $4.08 million of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $1.56 million in total assets, $4.12 million in total liabilities and a $2.55 million total shareholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/V3BSFQ About Halo Companies Allen, Texas-based Halo Companies, Inc., is a nationwide real estate investment, asset management and financial services company that provides technology and asset management solutions to asset owners as well as real estate and financial services to financially distressed consumers which can be applied individually or utilized as a comprehensive workout strategy. As reported by the TCR on April 8, 2011, Montgomery Coscia Greilich LLP, in Plano, Texas, expressed substantial doubt about Halo Companies' ability to continue as a going concern. The independent auditors noted that the Company has incurred losses since its inception and has not yet established profitable operations. The Company reported a net loss of $3.6 million on $6.9 million of revenue for 2010, compared with a net loss of $1.9 million on $9.1 million of revenue for 2009. HICKOK INCORPORATED: Posts $125,900 Net Loss in Q3 Ended June 30 ---------------------------------------------------------------- Hickok Incorporated filed its quarterly report on Form 10-Q, reporting a net loss of $125,949 on $1.3 million of revenues for the three months ended June 30, 2011, compared with a net loss of $151,479 on $1.4 million of revenues for the same period ended June 30, 2010. The Company reported a net loss of $657,612 on $3.7 million of revenues for the nine months ended June 30, 2011, compared with a net loss of $422,312 on $4.4 million of revenues for the same ended June 30, 2010. The Company's balance sheet at June 30, 2011, showed $3.4 million in total assets, $779,001 in total liabilities, all current, and stockholders' equity of $2.6 million. As reported in the TCR on Dec. 28, 2010, Meaden & Moore, Ltd., in Cleveland, Ohio, expressed substantial doubt about Hickok's ability to continue as a going concern, following the Company's results for the fiscal year ended Sept. 30, 2010. The independent auditors noted that the Company has incurred large operating losses during the past several years and may have insufficient cash to fund operations for the next twelve months. A copy of the Form 10-Q is available at http://is.gd/C7Pov7 Cleveland, Ohio-based Hickok Incorporated (OTC Bulletin Board: HICKA.PK) is a supplier of high quality products and services for the automotive, emissions testing, locomotive, and aircraft industries. HOLDINGS GAMING: Raised by S&P to 'CCC+' Due to PA Table Games -------------------------------------------------------------- Standard & Poor's Rating Services raised its corporate credit rating on Holdings Gaming Borrower L.P. (HGB), the operator of the Rivers Casino in Pittsburgh, to 'CCC+' from 'CCC' and removed the rating from CreditWatch, where it was placed with positive implications on July 26, 2011. The rating outlook is stable. "At the same time, we raised our issue-level rating on HGB's $303.5 million term loan due June 2015 to 'CCC+' from 'CCC' and maintained our recovery rating of '3' on the debt, indicating our expectations for meaningful (50%-70%) recovery in the event of a payment default," S&P stated. "The upgrade reflects improved operating performance -- largely due to the July 2010 addition of table games in Pennsylvania," said Standard & Poor's credit analyst Jennifer Pepper, "and our expectation that cash flow will remain sufficient to meet fixed charges in the intermediate term." "Further, operating improvement likely better positions HGB to potentially pursue a refinancing that would alleviate its current interest burden. Still, given the substantial level of noncash interest that will accrue, it remains unclear whether HGB's capital structure is sustainable over the long term." HORIZON BANCORP: Incurs $81,000 Net Loss in Second Quarter ---------------------------------------------------------- Manasota Group, Inc., formerly known as Horizon Bancorporation, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $81,094 on $0 of total operating income for the three months ended June 30, 2011, compared with net gain of $129,648 on $49,400 of total operating income for the same period a year ago. The Company also reported a net loss of $102,453 on $64 of total operating income for the six months ended June 30, 2011, compared with a net loss of $1.72 million on $49,400 of total operating income for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $1.23 million in total assets, $1.14 million in total liabilities, and $88,386 in shareholders' equity. In the past two calendar years, the Company has experienced heavy losses that caused its capital accounts to be reduced by approximately 98%. As reported in the TCR on April 25, 2011, Francis & Co., CPA's, in Atlanta, Georgia, noted that the Company has suffered heavy losses in calendar years 2010 and 2009, reducing its capital accounts significantly. "Moreover, federal and state regulators, in 2009, imposed a Written Agreement on the Bank mainly due to increasing levels in non-performing assets and eroding regulatory capital. The above, combined with the closing of the subsidiary bank raises substantial doubt about the Company's ability to continue as a going concern. During the first half of 2011, the Company's accounting staff has been fully engaged with determining the proper accounting treatment of certain adjustments stemming from negotiations with bank regulators over the closure of its wholly owned bank subsidiary. The Company is also seeking an exemption from data tagging its reports. As a result, the Company was delayed in filings its Quarterly Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/aE74yS About Horizon Bancorporation Brandenton, Fla.-based Horizon Bancorporation, Inc., acted as a one-bank holding company with respect to Horizon Bank, Bradenton, Florida, from Oct. 25, 1999, when the Bank commenced operations, until Sept. 10, 2010, when the Florida Office of Financial Regulation (the "OFR") declared the Bank to be insolvent. The Bank was closed, with the FDIC being appointed as receiver therefor, and sold to Bank of the Ozarks. In the short run, management intends to maintain the Company's status as a reporting public company, which, if an appropriate opportunity arises, may engage in a transaction with an operating company. HOWREY LLP: Sells Off Furniture as Part of Wind-Down ---------------------------------------------------- Jeffrey MacMillan at the Washington Post reports that Howrey auctioned off furniture from its District office, the latest step in ongoing bankruptcy proceedings for what was once a premier litigation firm with more than 700 attorneys worldwide. According to the report, the defunct firm continues to be mired in several disputes as it works with creditors toward a dissolution plan. In bankruptcy, it's battling its medical insurance provider Cigna over who should pay for more than 4,100 unpaid health claims from former employees worth up to $4.5 million. And it's facing off with its former Washington landlord over unpaid rent that could cost the firm $7.7 million. Mr. McMillan says Howrey has vacated most of its office space in the District's Warner Building on Pennsylvania Avenue, but building owner Warner Investments says the firm continues to run "wind-down operations" out of the Washington space, and that Howrey owes $7.7 million in unpaid rent dating back to February, according to motions filed last month in U.S. Bankruptcy Court for the Northern District of California. The report says Howrey's lawyers call Warner's demand for $7.7 million an "unabashed and blatant attempt" by the landlord to back out of an agreement the two parties reached in April, which said Howrey would vacate most of the offices and pay a reduced rate for the floor space it continued to retain. Warner's attorney, Gregg Kleiner at Luce Forward, did not return calls seeking comment. The dispute over unpaid rent is slated to be heard before Judge Dennis Montali on Aug. 31. Meanwhile, Cigna subsidiary Connecticut General Life Insurance Co.,, Howrey's medical insurance provider, has not processed more than 4,100 claims filed by former Howrey employees since March. Many charges were incurred before Howrey dissolved, and Cigna's refusal to administer the claims has resulted in many former employees being denied benefits, according to Howrey's attorneys. One former employee was denied benefits totaling about $32,000, even though $19,000 of the charges were incurred in November 2010, according to court documents. The report says some former employees are being threatened with collection agencies, interest and late fees, and risk damaging their credit ratings, the motion said. The $890,000 currently in Howrey's health plan account should be enough for Cigna to continue processing the claims, the bankrupt firm's attorneys said. But Cigna, represented by Connolly Bove Lodge & Hutz, says the 4,116 unprocessed unpaid claims total nearly $4.5 million, according to the report. The insurer "continues to engage in a dialogue with representatives of Howrey regarding Howrey's self- funded plan," a company spokesperson said in a statement. "The issue before the court is whether Howrey has the funds to pay claims under their self-funded plan." The matter is scheduled to be heard Thursday. About Howrey LLP Three creditors filed an involuntary Chapter 7 petition (Bankr. N.D. Calif. Case No. 11-31376) on April 11, 2011, against the remnants of the Washington-based law firm Howrey LLP. The filing was in San Francisco, where the firm had an office. The firm previously was known as Howrey & Simon and Howrey Simon Arnold & White LLP. The firm at one time had more than 700 lawyers in 17 offices. The partners voted to dissolve in March 2011, ending a 55-year run during which it became one of the top antitrust and intellectual property litigation firms in the United States. The firm specialized in antitrust and intellectual-property matters. The three creditors filing the involuntary petition together have $36,600 in claims, according to their petition. The involuntary chapter 7 petition was converted to a chapter 11 case in June at the request of the firm. In its schedules filed in July, the Debtor disclosed assets of $138.7 million and liabilities of $107.0 million. Howrey is being represented by Wiley Rein and Latham & Watkins. HUBBARD PROPERTIES: Dispute With IWA Sent to Mediation ------------------------------------------------------ The Hon. K. Rodney May of the U.S. Bankruptcy Court for the Middle District of Florida, appointed Jeffrey Warren as mediator in all concerns relating to the claims of creditor Investors Warranty of America, Inc., against debtor Hubbard Properties, LLC, and the Chapter 11 plan for Hubbard. The mediator will be entitled to compensation at his normal hourly rate, to be jointly paid by the Debtor and IWA upon the conclusion of the mediation. The Debtor is authorized to pay 50% of the cost and expenses of the mediation, including the mediator's compensation without further order of the Court. The parties are ordered to comply with pre-mediation requirements and mediation procedures, as may be required by the mediator. Each party will attend the mediation with counsel and the individual client or corporate client representative with full and absolute authority to agree to a mediated settlement. If an impasse is reached with respect to the mediation as a result of the failure of a party to comply with the requirement, the party will be liable for sanctions to include payment of all fees incurred by the other party to the case in connection with the mediation. The Court will conduct a status conference in the Chapter 11 case on Aug. 25, 2011, at 9:30 a.m. The Court has also continued until Sept. 8, 2011, at 9:30 a.m., the preliminary hearings on, among other things: (i) the Official Committee of Unsecured Creditors objection to the Disclosure Statement and confirmation of the Debtor's Plan of Reorganization; (ii) the motion to abate amended order conditionally approving disclosure statement; and (iv) the motion of IWA to temporarily allow claim for voting purposes. All deadlines established by the Court's amended order are extended and will be reset following the Aug. 25 status conference. The Court extended the Debtor's exclusive periods until the conclusion of any rescheduled confirmation hearing. As reported in the Troubled Company Reporter on July 22, 2011, attorneys for the Debtor, major secured creditor IWA, and the Committee have engaged in productive informal discussions regarding achieving a possible consensual plan of reorganization. Based on these discussions, and to maximize judicial efficiency and minimize the costs associated with the parties preparing for the currently scheduled confirmation hearing, the Debtor believes mediation on issues and disputes relating to the Plan and Disclosure Statement is appropriate. To facilitate mediation, the Debtor asks the Court to reschedule the plan confirmation hearing and the disclosure statement hearing. About Hubbard Properties Hubbard Properties owns tourist and entertainment center John's Pass Village in Madeira Beach, Florida. Hubbard Properties said it owes $22 million to Investors Warranty of America. Hubbard Properties, LLC, filed for Chapter 11 protection (Bankr. M.D. Fla. Case No. 11-01274) in Tampa, Florida, on Jan. 27, 2011. David S. Jennis, Esq., Kathleen I. DiSanto, Esq., and J. A. McPheeters, Esq., at Jennis & Bowen, P.L., in Tampa, Fla., serve as bankruptcy counsel. The Debtor also tapped Bacon & Bacon, P.A., as special counsel; Tony Buzbee and The Buzbee Law Firm as special counsel in connection with the assessment and recovery of the Debtor's BP oil spill claim, Van Middlesworth and Company, P.A., as accountant; and Claims Strategies Group, LLC, as claim consultant. The Debtor disclosed $12,572,058 in assets and $23,829,629 in liabilities as of the petition date. Donald F. Walton, U.S. Trustee for Region 21, appointed three unsecured creditors to the Official Committee of Unsecured Creditors in the Debtor's case. Hill, Ward & Henderson, P.A., represents the Committee. HUDSON HEALTHCARE: City Counsel Gives Up Right to $2 Million Claim ------------------------------------------------------------------ Claire Moses at Hoboken Patch reports that the City Council agreed to give up its rights to a $2 million claim in bankruptcy proceedings with Hudson Healthcare Inc., in a 5-3 vote during a special meeting last week. Council members Theresa Castellano, Tim Occhipinti and Michael Russo voted against. According to the report, HHI owes the city of Hoboken roughly $2 million in parking fees and rental payments. It's unclear how much of that $2 million the city would have gotten after going through bankruptcy court. In return for giving up rights to that claim, the city indemnifies itself from any liability from the roughly 5,000 creditors against the hospital, according to the report. Hoboken Patch relates that the city is waiting for the State Health Commissioner to approve the sale of the Hoboken University Medical Center to HUMC Holdco LLC, the same company that bought the Bayonne Medical Center. The state health planning board recently recommended the proposed sale after a public hearing. If the sale goes through, the city will be relieved of a $52 bond obligation. Mayor Dawn Zimmer and Hospital Authority Chairwoman Toni Tomarazzo have said that without this sale, the hospital will be forced to close, notes the report. The report says, after the roughly $90 million sale goes through, it's likely that Holdco will sell and lease back the hospital from an Alabama-based real estate firm, which has drawn criticism. Other concerns from critics-and an issue discussed during the state health planning board meeting-include the fact that HUMC will likely not accept all current health care contracts, which could mean that some Hobokenites won't be able to use the hospital anymore after the sale. The report adds it also recently came to light that former CEO Spiros Hatiras was paid $600,000 right before the management company filed for bankruptcy. The settlement between the city and the hospital management company is laid out in a 19-page document, which has not yet been made public. Council members received the document on Thursday afternoon. Some council-members said they had not read the document before the meeting, notes the Hoboken Patch. Hoboken Patch says Paul Hollander-who is the special counsel retained for this matter by the city at $540 an hour that is part of an initial emergency contract that's not to exceed $17,500- briefed the council on the settlement in a closed session. Mr. Hollander explained also that part of the proceeds of the sale will be returned to the HHI, with which it can pay off some of its creditors. The HHI's total debt is roughly $25 million. Mr. Hollander said that this amount will be calculated by a formula, which was not disclosed last week, notes Hoboken Patch. About Hudson Healthcare Hudson Healthcare Inc. is the nonprofit operator of Hoboken University Medical Center in Hoboken, New Jersey. Hudson Healthcare filed for Chapter 11 protection (Bankr. D. N.J. Case No. 11-33014) in Newark on Aug. 1, 2011, estimating assets and debt of less than $50 million. Affiliate Hoboken Municipal Hospital Authority also sought Chapter 11 protection. Judge Donald H. Steckroth presides over the cases. Attorneys at Trenk, Dipasquale, Webster, et al., serve as counsel to the Debtor. Epiq Bankruptcy Solutions, LLC is the noticing and claims agent. In August 2011, the New Jersey Health Planning Board voted to recommend to the Commissioner of Health to approve the sale of Hoboken University Medical Center to HUMC Holdco, a private group that also owns Bayonne Medical Center. Holdco has pledged to maintain it as a hospital for at least seven years. The proposed transaction totals $91.7 million, including a $51.6 million cash payment to extinguish Hobokens' bond guarantee. The new owners have pledged to put $20 million in capital improvements in the hospital. HUDSON HEALTHCARE: U.S. Trustee Appoints 7-Member Creditor's Panel ------------------------------------------------------------------ Roberta A. Deangelis, United States Trustee for Region 3, under 11 U.S.C. Sec. 1102(a) and (b), appointed seven unsecured creditors to serve on the Official Committee of Unsecured Creditors of Hudson Healthcare Inc. The Creditors Committee members are: 1. Susan Cleary Sidney Seligman District 1199J NJ Benefit & Pension Funds 9-25 Alling Street Newark, NJ 07102 Tel: (973) 624-1199 Fax: (973) 624-0801 2. Daniel J. Mulligan MedAssets Net Revenue Systems, LLC 1 Route 17 South Saddle River, NJ 07458 Tel: (201) 786-6006 Fax: (201) 786-6406 3. Virginia Treacy JNESO -District Counsel 1- IUOE 1225 Livingston Avenue North Brunswick, NJ 08902 Tel: (732) 745-2776 Fax: (732) 828-6343 4. Suzanne Klar, Esq. PSEG 80 Park Plaza T5D Newark, NJ 07102 Tel: (973) 430-6483 Fax: (973) 645-1103 5. Brad Hamman, Chairperson Sodexo Operations, LLC 283 Cranes Roost Blvd. Suite 260 Altamonte Springs, FL 32701 Tel: (407) 339-3230 ext. 35204 Fax: (407) 260-2305 6. Robert Speeney Cardinal Health 200, LLC 7000 Cardinal Place Dublin, OH 43017 Tel: (614) 553-3125 Fax: (614) 652-6848 7. Debra M. Lightner, Esq. Horizon Blue Cross & Blue Shield 3 Penn Plaza East Newark, NJ 07102 Tel: (973) 466-8702 Fax: (973) 466-7759 About Hudson Healthcare Hudson Healthcare Inc. is the nonprofit operator of Hoboken University Medical Center in Hoboken, New Jersey. Hudson Healthcare filed for Chapter 11 protection (Bankr. D. N.J. Case No. 11-33014) in Newark on Aug. 1, 2011, estimating assets and debt of less than $50 million. Affiliate Hoboken Municipal Hospital Authority also sought Chapter 11 protection. Judge Donald H. Steckroth presides over the cases. Attorneys at Trenk, Dipasquale, Webster, et al., serve as counsel to the Debtor. Epiq Bankruptcy Solutions, LLC is the noticing and claims agent. In August 2011, the New Jersey Health Planning Board voted to recommend to the Commissioner of Health to approve the sale of Hoboken University Medical Center to HUMC Holdco, a private group that also owns Bayonne Medical Center. Holdco has pledged to maintain it as a hospital for at least seven years. The proposed transaction totals $91.7 million, including a $51.6 million cash payment to extinguish Hobokens' bond guarantee. The new owners have pledged to put $20 million in capital improvements in the hospital. INDIANAPOLIS DOWNS: Blasts Ex-Gen. Managers' Compensation Claims ---------------------------------------------------------------- Evan Weinberger at Bankruptcy Law360 reports that Indianapolis Downs LLC said Friday that the former general manager of its casino operations got his facts wrong when he objected to the racino's bid to halt fulfillment of his compensation package. In a declaration filed in Delaware bankruptcy court, Law360 relates, Indianapolis Downs disputed Richard Kline's assertion that he resigned his position with the company effective June 1 "for good reason" and was entitled to the remainder of his contract. About Indianapolis Downs Indianapolis Downs, LLC, operates a "racino," which is a combined race track and casino, at a state-of-the-art 283 acre Shelbyville, Indiana site. It also operates two satellite wagering facilities in Evansville and Clarksville, Indiana. Total revenue for 2010 was $270 million, representing an 8.7% increase in 2009. The casino captured 53% of the Indianapolis market share. In July 2001, Indianapolis Downs was granted a permit to conduct a horse track operation in Shelvyville, Indiana, and started operating the track in 2002. It was granted permission to operate the casino at the racetrack operation in May 2007. The casino began operations in July 2010. Indianapolis Downs and subsidiary, Indianapolis Downs Capital Corp., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 11-11046) in Wilmington, Delaware, on April 7, 2011. Indianapolis Downs estimated $500 million to $1 billion in assets and up to $500 million in debt as of the Chapter 11 filing. According to a court filing, the Debtor owes $98,125,000 on a first lien debt. It also owes $375,000,000 on secured notes and $72,649,048 on subordinated notes. Matthew L. Hinker, Esq., Scott D. Cousins, Esq., and Victoria Watson Counihan, Esq., at Greenberg Traurig, LLP in Wilmington, Delaware, have been tapped as counsel to the Debtors. Christopher A. Ward, Esq., at Polsinelli Shughart PC, in Wilmington, Delaware, is the conflicts counsel. Lazard Freres & Co. LLC is the investment banker. Bose Mckinney & Evans LLP and Bose Public Affairs Group LLC serve as special counsel. Kobi Partners, LLC, is the restructuring services provider. Epiq Bankruptcy Solutions is the claims and notice agent. INDUSTRIAL ENTERPRISES: Tabor Fights to Keep $1.52-Mil. of Stock ---------------------------------------------------------------- Steve Urbon at SouthCoastTODAY.com reports that Tabor Academy is fighting hard against returning any of the $1.52 million worth of stock given to the school by an alumnus who pleaded guilty in a $110 million securities fraud scheme where the stock originated. According to the report, Tabor named its Mazzuto Math Wing after John Mazzuto, class of 1966, CEO of Industrial Enterprises of America, who made a series of gifts of stock to the school between 2005 and 2007. That was about the time shareholders and New York law enforcement caught on to the fraud. The shareholders sued the New York-based company, which in 2009 filed for Chapter 11 bankruptcy, and later settled. The report says Mr. Mazzuto in January pleaded guilty to the fraud and is free awaiting sentencing next month. After his plea, he turned state's evidence against his partner in the scheme, an Ohio lawyer named James Margulies, who went to trial and was convicted last month on six counts and is in prison in New York, also awaiting sentencing. Mr. Margulies' lawyer said after Mazzuto's testimony: "This is one of the grand scamsters of our generation." Mr. Mazzuto's testimony confirmed that the stock that Mazzuto, a New Jersey native, gave Tabor and a handful of other schools, including Yale University, was in the form of illegally issued employee stock options. Called S-8 stocks, they are legally restricted as payment to employees, contractors and others doing business with a company. They cannot be issued as publicly traded stock. About Industrial Enterprises Pittsburgh, Pennsylvania-based Industrial Enterprises of America, Inc., filed for Chapter 11 protection (Bankr. D. Del. Case No. 09- 11508) on May 1, 2009. On April 30, 2009, Pitt Penn Holding Co., Inc., and Pitt Penn Oil Co., LLC, each filed voluntary petitions for Chapter 11 relief, under Case Nos. 09-11475 and 09-11476. On May 4, 2009, EMC Packaging, Inc., filed a voluntary petition for Chapter 11 relief, under Case No. 09-11524. On May 6, 2009, Unifide Industries, LLC, and Today's Way Manufacturing LLC, each filed a voluntary petition for Chapter 11 relief, under Case Nos. 09-11587 and 09-11586. PPH, PPO, EMC, Unifide, and Today's Way are each subsidiaries of the Company. The cases are jointly administered under Case No. 09-11475. Christopher D. Loizides, Esq., at Loizides, P.A., in Wilmington, Del., represents the Debtors as counsel. In its petition, Industrial Enterprises disclosed total assets of $50,476,697 and total debts of $17,853,997. Based on public filings previously made with the Securities and Exchange Commission, Industrial Enterprises originally operated as a holding company with four wholly owned subsidiaries, PPH, EMC, Unifide, and Today's Way. PPH, through its wholly owned subsidiary, PPO, was a leading manufacturer, marketer and seller of automotive chemicals and additives. EMC's original business consisted of converting hydrofluorocarbon gases R134a and R152a into branded private label refrigerant and propellant products. Unifide was a leading marketer and seller of automotive chemicals and additives. Today's Way manufactured and packaged the products which were sold by Unifide. INNOVATIVE FOOD: Reports $562,600 Net Income in 2nd Quarter ----------------------------------------------------------- Innovative Food Holdings, Inc., filed its quarterly report on Form 10-Q, reporting net income of $562,604 on $2.8 million of revenue for the three months ended June 30, 2011, compared with a net loss of $1.6 million on $2.3 million of revenue for the same period last year. The Company reported net income of $732,732 on $5.2 million of revenue for the six months ended June 30, 2011, compared with a net loss of $2.7 million on $4.6 million of revenue for the same period of 2010. A substantial portion of the gains is the result of non-cash items, such as the revaluation of warrant liability, option liability, and conversion option liability, as well as the gain and loss on the extinguishment of debt. The Company's balance sheet at June 30, 2011, showed $1.2 million in total assets, $5.8 million in total liabilities, all current, and a stockholders' deficit of $4.6 million. As reported in the TCR on March 23, 2011, RBSM LLP, in New York, expressed substantial doubt about Innovative Food Holdings' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has incurred significant losses from operations since its inception and has a working capital deficiency. A copy of the Form 10-Q is available at http://is.gd/r9q1tY Naples, Fla.-based Innovative Food Holdings, Inc., through its subsidiaries, provides perishables and specialty food products to the wholesale foodservice industry. INT'L COMMERCIAL: Swings to $5,500 Profit in Second Quarter ----------------------------------------------------------- International Commercial Television Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting net income of $5,588 on $687,142 of net sales for the three months ended June 30, 2011, compared with a net loss of $317,301 on $896,453 of net sales for the same period a year ago. The Company also reported a net loss of $227,941 on $1.22 million of net sales for the six months ended June 30, 2011, compared with a net loss of $392,429 on $2.22 million of net sales for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $704,645 in total assets, $1.72 million in total liabilities, and a $1.01 million total shareholders' deficit. The Company reported a net loss of $795,913 on $3.90 million of net sales for the year ended Dec. 31, 2010, compared with a net loss of $241,135 on $5.89 million of net sales during the prior year. As reported by the TCR on April 2, 2011, EisnerAmper, LLP, in Edison, New Jersey, noted that the Company's recurring losses from operations and negative cash flows from operations raise substantial doubt about the Company's ability to continue as a going concern. The Company generated negative cash flows from operating activities in the past fiscal year of approximately $319,000, and the Company, for the most part, has experienced recurring losses from operations. The Company had negative working capital of approximately $879,000 and an accumulated deficit of approximately $6,218,000 as of Dec. 31, 2010. The Company said there is no guarantee that it will be successful in bringing its products into the traditional retail environment. If the Company is unsuccessful in achieving this goal, the Company will be required to raise additional capital to meet its working capital needs. If the Company is unsuccessful in completing additional financings, it will not be able to meet its working capital needs or execute its business plan. In such case the Company will assess all available alternatives including a sale of its assets or merger, the suspension of operations and possibly liquidation, auction, bankruptcy, or other measures. A full-text copy of the Form 10-Q is available for free at: http://is.gd/Kqq1H1 About International Commercial Bainbridge Island, Wash.-based International Commercial Television Inc. was organized under the laws of the State of Nevada on June 25, 1998. The Company sells various consumer products. The products are primarily marketed and sold throughout the United States and internationally via infomercials. INTERNATIONAL RARITIES: Coin Firm, Mired in Suits, Seeks Ch. 11 ------------------------------------------------------------------ Minneapolis, Minnesota-based International Rarities Corp. filed a Chapter 11 petition (Bankr. D. Minn. Case No. 11-45512) in its hometown on Aug. 19, 2011. Dan Browning at the Star Tribune reports that the downtown Minneapolis coin firm filed a last-minute petition for bankruptcy protection as it headed for trial this week in Florida on allegations that it bilked an elderly man out of more than $335,000. According to the report, International Rarities, which is also under investigation by the Minnesota attorney general's office on allegations of consumer fraud, disclosed assets of $1.4 million and liabilities exceeding $3 million. The report says the bankruptcy effectively stayed a federal lawsuit brought by Dean Dellinger of Milton, Fla., who alleges that the coin company cheated him on a series of gold and silver trades. International Rarities disputes the allegations. The report notes International Rarities' bankruptcy petition lists 29 creditors from around the country who sent in just over $1 million for coins but never got them. It also lists more than 21 creditors with potential claims of nearly $900,000 from investments they made in International Rarities Holdings Inc. of Las Vegas. The report relates that David Marion, who owns International Rarities, set up the holding company in a failed plan to take the coin business public and expand nationwide. Despite heightened interest in precious metals as a hedge against inflation, International Rarities' revenue declined. The bankruptcy petition says the business brought in $24 million in 2009, but just $15.7 million in 2010. According to the report, International Rarities issued a statement Monday in response to a reporter's questions and said its reorganization plan includes "100 percent payback to customers of International Rarities Corporation and investors in International Rarities Holdings." The Company blamed the failure of its expansion effort on "outside experts" Mr. Marion hired to help manage and market the investment offering. The bankruptcy petition indicates that Mr. Marion stepped down from his role as president and CEO in July, along with his chief operating officer, Catherine Chambers. Both are listed among the creditors with unspecific indemnification claims. Marion also says he's owed $454,533 from a loan he made to the company. Stephen J. Hastings of Eden Prairie is listed as president of the firm. The Internal Revenue Service filed a tax lien against him in May for $257,458, and the state of Minnesota filed one last October for $27,943. A spokesman said Hastings' tax issues are related to another turnaround effort he worked on, and that he is addressing them. J.C. EVANS: U.S. Trustee Appoints 7-Member Creditor's Panel ----------------------------------------------------------- Judy A. Robbins, United States Trustee for Region 7, under 11 U.S.C. Sec. 1102(a) and (b), appointed seven unsecured creditors to serve on the Official Committee of Unsecured Creditors of J.C. Evans Construction. The Creditors Committee members are: 1. Yann Vessely Austin Traffic Signal Construction Co. P.O. Box 130 Round Rock, TX 78680 Tel: (512) 255-9951 Fax: (512) 255-0416 2. Doug Stayton Dan A. Stewart, Inc. P.O. Box 17336 Austin, TX 78760 Tel: (512) 385-0510 Fax: (512) 385-1341 3. Craig Burkert (voting) Gerald Cook Romco Equipment Co. P.O. Box 560248 Dallas, TX 75256 Tel: (214) 819-4140 Fax: (214) 819-4131 4. Steven DeLeod Austin Bridge & Road 12112 Volente Rd. Austin, TX 78726 Tel: (512) 381-0008 Fax: (512) 219-6219 5. Dawn Dickert/Lynn Guynes Hanson Pipe & Precast 8505 Freeport Pkwy Irving, TX 75063 Tel: (469) 417-1302 Fax: (866) 924-3067 6. Joseph Pierson Construction Risk Solutions LLC 11311 McCormick Rd. Ste. 450 Hunt Valley, MD 21031 Tel: (443) 798-7488 Fax: (443) 798-7290 7. Terry B. Ludzenski Holt Texas Ltd. P.O. Box 207916 San Antonio, TX 78220 Tel: (210) 304-8623 Fax: (210) 333-0541 About J.C. Evans Construction With roots stretching back over 55 years, J.C. Evans is a heavy equipment construction company based in Leander, Texas. Through J.C. Evans Construction Co., L.P., a Texas limited partnership d/b/a/ American Aggregates, the Company owns and operates a construction company specializing in heavy site preparation on commercial, pipeline, utility and highway projects, including excavating, trenching, site preparation and construction. Through Adkins Land Development, L.P., a Texas limited partnership, the Company owns a 700-acre quarry, which produces aggregate for use in road construction. J.C. Evans Construction Holdings is the holding company that owns directly or indirectly each of the other entities. In turn, Holdings is owned by a trust for the benefit of the current and former employees of J.C. Evans through an Employee Stock Ownership Plan. Six affiliated companies filed for Chapter 11 (Bankr. W.D. Tex. Case Nos. 11-11926 to 11-11931) on Aug. 1, 2011. These are JCE Delaware Inc., J.C. Evans Construction Holdings, J.C. Evans Nevada, LLC, EQUUS Development Inc., J.C. Evans Construction and Adkins Land Development. The cases are jointly administered before Judge Craig A. Gargotta. George H. Tarpley, Esq., and Mark E. Andrews, Esq., at Cox Smith Matthews Incorporated, serve as bankruptcy counsel. In its petition, JCE Delaware estimated $50 million to $100 million in both assets and debts. JAMES MCDILDA: Bankruptcy Won't Affect $600,000 of Housing Loans ---------------------------------------------------------------- James McDilda, a landlord and former Redding City Council candidate, filed for Chapter 11 bankruptcy protection (Bankr. E.D. Calif. Case No. 11-35260) on June 20, 2011. Scott Mobley at redding.com reports that according to Mr. McDilda, the bankruptcy proceedings won't endanger the nearly $600,000 of affordable housing loans he's taken out through the city of Redding, California, to help refurbish the 60 apartments he owns on Wilson Avenue in the southeast part of town. Mr. McDilda sought bankruptcy before a 27 foreclosure auction of four Wilson Avenue apartment buildings for $2.8 million of outstanding debt to Five Star Bank. The report says Mr. McDilda has told the court he intends to reorganize his finances by mid-September. Meanwhile, he has agreed to funnel the $40,000 of monthly income from his apartments into fixed payments to his main creditors, including $750 each month to the city and $2,660 to Shasta County for delinquent property taxes. Mr. McDilda said he owes the county $82,085. JEFFERSON, AL: Local Borrowers Punished as County Faces Bankruptcy ------------------------------------------------------------------ Michael Bathon at Bloomberg News reports that local governments in Alabama, where thousands of highways and bridges are overdue for repairs, face higher borrowing costs for public projects as Jefferson County debates filing the nation's biggest municipal bankruptcy. A town that wants to borrow for road improvements or building renovations will pay about 0.2 percentage point more than one with the same credit rating in another state, even if the debt has nothing to do with Jefferson County, said Jonathan Nordstrom, a managing director at Morgan Keegan & Co., which he said is the top Alabama underwriter. If the issuer is in Jefferson County, it might be stuck with 0.8 percentage point more in regular interest rates, he said. Commission President Wants Ch. 9 Option According to Bloomberg News, Jefferson County Commission President David Carrington said Aug. 22 they won't agree to a debt restructuring deal that rules out the possibility of filing for bankruptcy protection. Mr. Carrington, who is traveling to New York this week to speak with creditors in a failed $3.14 billion sewer bond refinancing, wants the option open because the county hasn't shored up its general fund after a court struck down a wage tax. "If a condition is we agree to not file Chapter 9, that's a nonstarter," Carrington told reporters yesterday in his Birmingham office. The county rejected an offer Aug. 12 that would have reduced debt to $2.33 billion and required Alabama Governor Robert Bentley to give his permission before the county could file for bankruptcy. It has until Sept. 16 to negotiate another offer. The county has proposed debt be reduced by another $140 million, Mr. Carrington said. Bloomberg News notes that a deal would probably need the approval of Alabama's Legislature. Under the creditors' proposed agreement, the debt would come with a "moral obligation" backing from the state, requiring lawmakers' approval and estimated to be worth more than $1 billion in reduced interest rates. Hostile Legislature Bloomberg News said in a separate report that a settlement that would let Jefferson County avoid municipal bankruptcy hinges on help from a legislature that so far hasn't been willing or able to offer it. Even Jefferson's own lawmakers are divided over Governor Robert Bentley's proposal to offer the state's moral obligation to back a restructuring of the county's $3.14 billion sewer debt, and on how and whether to bolster its general fund. Both measures are critical to keeping the state's most populous county afloat, according to officials there. Bloomberg noted that just one local lawmaker can derail a deal, according to rules for county-specific bills. It happened most recently in June, when Republican Senator Scott Beason of Gardendale killed a measure that would have let Jefferson replace a wage tax that a court struck down, gutting its general fund. About Jefferson County Jefferson County has its seat in Birmingham, Alabama. It has a population of 660,000. It ended its 2006 fiscal year with a $42.6 million general fund balance, according to Standard & Poor's. Jefferson County is trying to restructure $3.14 billion in sewer debt. A bankruptcy by Jefferson County stands to be the largest municipal bankruptcy in U.S. history. It could beat the record of $1.7 billion set by Orange County, California in 1994. In September 2010, Alabama Circuit Court Judge Albert Johnson named John S. Young Jr. LLC as receiver for the sewer system. Jefferson County has retained Kenneth Klee, Esq., at Klee Tuchin Bogdanoff & Stern LLP to represent the county in the event of bankruptcy. Mr. Klee is considered to be a municipal-bankruptcy expert, having handled Orange County, Calif.'s bankruptcy case in 1994. A Chapter 9 filing Jefferson County would be the largest in U.S. municipal history. JEFFREY GEFTOS: Court Says Plan Outline Has Defects --------------------------------------------------- Bankruptcy Judge Thomas J. Tucker declined to grant preliminary approval of the disclosure statement contained in Jeffrey J. Geftos and Cynthia Geftos' Combined Chapter 11 Plan of Reorganization and Disclosure Statement filed Aug. 1, 2011, citing a laundry-list of problems that the Debtors must correct. The Debtors were required to file revisions to the disclosure statement by Aug. 16. A copy of the Court's Aug. 11, 2011 Order is available at http://is.gd/fjnQYNfrom Leagle.com. Jeffrey J. Geftos and Cynthia Geftos filed for Chapter 11 bankruptcy (Bankr. E.D. Mich. Case No. 11-49372) on April 1, 2011. JONES SODA: Incurs $1.8 Million Net Loss in 2nd Quarter ------------------------------------------------------- Jones Soda Co. filed its quarterly report on Form 10-Q, reporting a net loss of $1.8 million on $4.9 million of revenue for the three months ended June 30, 2011, compared with a net loss of $1.6 million on $5.4 million of revenue for the same period last year. The Company reported a net loss of $3.5 million on $9.0 million of revenue for the six months ended June 30, 2011, compared with a net loss of $3.7 million on $9.3 million of revenue for the same period last year. The Company's balance sheet at June 30, 2011, showed $11.5 million in total assets, $3.6 million in total liabilities, and stockholders' equity of $7.9 million. As reported in the TCR on March 28, 2011, Peterson Sullivan LLP, in Seattle, Washington, expressed substantial doubt about Jones Soda Co.'s ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has experienced recurring losses from operations and negative cash flows from operating activities. A copy of the Form 10-Q is available at http://is.gd/njtK1j Headquartered in Seattle, Washington, Jones Soda Co. (NASDAQ: JSDA) -- http://www.jonessoda.com/-- markets and distributes premium beverages under the Jones Soda, Jones Pure Cane Soda(R) and Whoopass Energy Drink(R) brands and sells through its distribution network in markets primarily across North America. KIEBLER RECREATION: Peek'n Peak Resort Has "Several Bids" --------------------------------------------------------- Dennis Phillips at the Post-Journal reports that there is interest from several bidders to purchase the Peek'n Peak Resort & Spa. "There was interest. They have received several bids," the report quotes Richard Dixon, Chautauqua County Industrial Development Agency chief financial officer and chair for the Unsecured Creditors Committee in the resort's bankruptcy case, as saying. "Now they will consider the bids to make sure they meet qualifications and specifications." According to court documents filed in July, the resort will either be sold through competitive bidding or a live auction. Those interested in bidding on the resort had until August 12 to submit a proposal to David O. Simon, the court-appointed trustee overseeing the Peak's operations. Mr. Simon told The Post-Journal the exact number of bids received could not be released because the bankruptcy case is ongoing. The report says now that the bids are in, Simon and officials representing the primary creditor, Huntington National Bank, will review and negotiate with those submitting the three top offers - or all bids within 10 percent of the highest purchase price. Mr. Simon and bank officials will select the top offers and meet with qualified bidders to negotiate the final price for the purchase of the resort. Each of the top qualified bidders will submit its final, highest and best offer on a purchase agreement form by Monday. At the discretion of Simon and Huntington, the trustee may notify the top bidders that in lieu of accepting a final offer an auction will occur August 24. The highest offer at the auction will be the successful bidder. The report notes the court will then conduct a final hearing to consider approval of the successful bid Aug. 25. About Kiebler Recreation Peek'n Peak Resort -- http://www.pknpk.com/-- is a recreational and leisure facility. Findley Lake, New York-based Kiebler Recreation, LLC, dba Peek'n Peak Resort, filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ohio Case No. 10-15099) on May 26, 2010. Robert C. Folland, Esq., at Thompson Hine LLP, has withdrawn as counsel to the Debtor. The Company estimated assets and debts at $10 million to $50 million as of the Petition Date. David O. Simon was appointed by the U.S. Trustee as acting bankruptcy trustee to the Debtor on June 8, 2011. Kohrman, Jackson & Krantz P.L.L. serves as counsel to the Trustee. The Trustee tapped Jones Lang LaSalle Americas, Inc., as investment banker/business broker to market the Debtor's assets. An affiliate, Kiebler Slippery Rock, LLC, filed a separate Chapter 11 petition on September 25, 2009 (Bankr. N.D. Ohio Case No. 09- 19087). KINETIC CONCEPTS: S&P Gives 'BB-' Rating on Senior Secured Debt --------------------------------------------------------------- Standard & Poor's Ratings Services assigned a 'BB-' senior secured issue-level rating and '1' recovery rating on San Antonio, Texas- based medical technology company Kinetic Concepts Inc.'s (KCI) proposed $200 million revolving credit facility maturing in 2016 and $2.6 billion term loan B maturing in 2018. "The '1' recovery rating reflects our expectation for very high (90% to 100%) recovery for senior secured lenders in the event of a default," S&P related. "We have assumed that KCI will issue $2.15 billion of notes (unrated at this time) in the future, which will be subordinate to the proposed senior secured revolver and term loan. KCI's 'BB+' corporate credit rating remains on CreditWatch with negative implications. We originally placed KCI's corporate credit rating on CreditWatch Negative on July 8, 2011, following reports that that the company may be subject to a takeover by a private-equity firm," S&P related. "We view KCI's pro forma financial risk profile as highly leveraged given initial adjusted debt to EBITDA, per our calculations, of over 7.0x. We expect this ratio to quickly drop below 6.5x in 2012 due to the elimination of patent royalty payments to Wake Forest and the company's cost-saving initiatives; Wake Forest's patents were recently found to be invalid. Notwithstanding this modest de-leveraging, we expect funds from operations to debt in 2012 to remain weak (5%) given the company's high interest expense. We believe that KCI will operate with a stretched financial risk profile for at least the next two years. We view its pro forma liquidity profile as adequate," S&P stated. "We continue to view KCI's business risk profile as fair, given its significant dependence on vacuum-assisted closure (VAC) devices (70% of 2010 revenues), despite the company's well- entrenched market positions in VAC devices and products in its LifeCell division. Product concentration exposes the company to competitive technological developments and potential third- party pricing pressure. Furthermore, KCI's primary competitor, Smith & Nephew, has been aggressively marketing its wound therapy product, which we believe has somewhat limited pricing and growth of the VAC. However, KCI largely has been able to maintain its revenues, and we believe Smith & Nephew's market share remains very small; KCI has maintained significant market share despite competition," S&P related. "Nevertheless, VAC sales have slowed, but remain rather steady. While there are no clinical studies directly comparing the VAC with other wound closure devices, we believe the demand for the VAC and its success in the acute-care setting may imply superior efficacy. Moreover, KCI's established distribution channel and the VAC's demonstrated market acceptance may be difficult for a competitor to overcome. Increased competition and reimbursement changes may slow KCI's growth, but we have factored this possibility into our assessment of the company's business risk profile," S&P stated. Litigation risks remain an uncertainty and could pose a call on liquidity over the next few years. KCI has been involved in several patent disputes regarding the use of negative pressure wound therapy. As a result of the company's patent cases being invalidated in October 2010, KCI is no longer making royalty payments to Wake Forest. This will save KCI roughly $85 million annually for three and a half years; the U.S. patents are set to expire in June 2014. "While we believe that it is unlikely, an outcome that requires KCI to make royalties payments (particularly retroactively) would weaken the company's liquidity and could lead to a downgrade," S&P related. "Following the completion of the proposed LBO (likely before the end of 2011), we expect to remove our corporate credit rating on KCI from CreditWatch and lower it to 'B' from 'BB+', reflecting increased debt leverage and low cash flow relative to future debt. At the same time, we expect to assign an outlook of stable, reflecting the company's relatively stable operating performance and cash flows throughout the recent three-year global economic downturn," S&P stated. This should partially offset the company's very high interest expense and capital expenditures. Ratings List Ratings Remaining On CreditWatch Kinetic Concepts Inc. Corporate Credit Rating BB+/Watch Neg/-- New Ratings Kinetic Concepts Inc. Senior Secured $2.6 bil term loan B due 2018 BB- Recovery Rating 1 $200 mil revolver due 2016 BB- Recovery Rating 1 LAMBUTH UNIVERSITY: Committee Taps Stephen Hughes as Attorney ------------------------------------------------------------- Tajuana Cheshier at the Jackson Sun reports that a group of unsecured creditors is seeking legal representation from Milan attorney Stephen L. Hughes in Lambuth University's Chapter 11 bankruptcy protection case. According to the report, the Unsecured Creditors Committee has filed a petition asking for court approval in employing Hughes as its attorney. In the petition, the Committee states that Hughes does not hold any adverse interest in the case. The report says Hughes has agreed to represent the unsecured creditors for a compensation rate of $235 an hour. He will be responsible for preparing applications, answers, orders, reports and other legal papers. A hearing is scheduled at 9:30 a.m. Sept. 7 should any unsecured creditors protest Hughes' application. The hearing will not take place if there are no protests. About Lambuth University Lambuth University in Jackson, Tennessee, said in its Web site that the trustees of the liberal arts school, founded in 1843, decided to close the school effective June 30, 2011. Lambuth filed for Chapter 11 protection (Bankr. W.D. Tenn. Case No. 11- 11942) in Jackson, Tennessee on the same day. Steven N. Douglass, Esq., at Harris Shelton Hanover Walsh, PLLC, serves as counsel to the Debtor. The Debtor estimated assets of up to $10 million and debts of $10 million to $50 million as of the Chapter 11 filing. LANIER HEALTH: S&P Revises Outlook on 'BB' Rating to Positive ------------------------------------------------------------- Standard & Poor's Ratings Services revised the outlook to positive from stable on its 'BB-' long-term rating and affirmed the rating on Lanier Health Services (Lanier), Ala.'s series 1997A bonds, issued for Chattahoochee Valley Hospital Society Inc. "The positive outlook reflects continued improvement in Lanier's operating and balance sheet metrics, although both remain constrained and characteristic of a non-investment grade credit rating. A future upgrade will require additional and substantial improvement in balance sheet metrics and operating performance, as well as a reversal of the negative patient volume trend. By contrast, the return to a stable outlook or a downgrade could result if patient volumes continue to decline and the hospital does not sustain financial improvements," said Standard & Poor's credit analyst Karl Propst. Positive credit factors, in Standard & Poor's opinion, include: Improving operating income metrics, resulting from revenue and cost initiatives implemented by the hospital; Recent success recruiting clinical staff to the area; and The presence of a $1.2-billion Kia Motors Corp. assembly plant five miles from Lanier that began manufacturing cars last year. Officials expect it to bring more than 3,500 direct Kia jobs to the region. Kia suppliers have created more than 8,000 jobs in the surrounding counties. Negative credit factors, in Standard & Poor's view, include: Lanier's $608,000 net operating loss for fiscal 2010, and $58,000 operating loss for the nine months ended March 31, 2011, although these metrics continue to improve; Declining patient volumes; Weak liquidity characterized by unrestricted cash and investments to $7.1 million (as of March 2011), or 68 days' cash on hand, and 56% cash to total debt; Maximum annual debt service coverage that, while improved to 1.4x at fiscal year-end 2010, remains weak; and An increasingly competitive landscape. A pledge of the hospital's unrestricted accounts receivable secures the series 1997A bonds. LEED CORP: DIP Loans Approved for Old School Project Completion --------------------------------------------------------------- The Hon. Jim D. Pappas of the Bankruptcy Court for the District of Idaho authorized The Leed Corporation to enter into a secured transaction with Equity Trust Company custodian FBO Neal C. Hocklander IRA, or some other provider. As reported in the Troubled Company Reporter on July 26, 2011, the Debtor is real estate developer, including construction and land development, well as landscaping and related care and maintenance in southern Idaho, primarily based out of Shoshone, Idaho. In 2009, the Debtor was unable to complete fifteen residential properties due to the conduct of CL& M and its related lenders for which CL&M was the loan servicer. CL&M was the loan servicer on the initial loans used to acquire these 15 homes; however, in the fall of 2009 CL&M failed to fund the required construction loan draws. The Debtor is unable to obtain credit for its construction business operations with regards to the Old School Project lots. The terms of the loans include: Amount of Loans: Loan No. 1: $242,000; Loan No. 2: $100,000, revolving line of credit Purpose: Loan No. 1: To fund the settlement agreements with the New Hampshire chapter 7 Trustee and with David & Jodi Orr with regards to their respective asserted liens in the Old School Project lots; Loan No. 2: To complete construction on partially built new residential housing on a revolving basis; Interest Rate/Credit Terms: Loan No. 1: 12% per annum from the date of disbursement, with 10 points being attributable for loan fees; Loan No. 2: Upon the sale and closing of each of the Old School Project lots, the loan draws disbursed under this Note will be paid, without interest, in the amount attributable to the lot then being sold. The lender will also be 33% of the Net Profit (in lieu of other interest or points under this Note) from each of the Old School Project lots at the time of closing. Date of Repayment: Loan No. 1: Due and payable upon the sale and closing of each of the 15 Old School Project lots, with 1/15 be due with respect to each lot, with the unpaid principal and accrued interest being due upon maturity of May 31, 2013; Loan No. 2: On or before the last day of the 24th month following the date of the first disbursement or loan draw, but in no event extending beyond to May 31, 2013; Collateral: The Notes will be secured by a Deed of Trust encumbering certain real property located in Lincoln County, the property consisting of the Debtor's interest in 15 lots, commonly known as the Old School Project. The Equity credit facility will prime the existing liens and security interests of secured creditors who are not parties to the agreement. The Equity Credit Facility will constitute a lien on the 15 Old School Project lots, that will be, a first priority lien, senior to all other existing encumbrances on the property. All other existing encumbrances on the property are subordinated to the Equity Credit Facility. 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: Dechert Has Nod to Assist Directors in JPM Suit ---------------------------------------------------------------- Bankruptcy Judge James Peck authorized Dechert LLP to provide legal assistance to former and incumbent directors who may be summoned to testify in connection with a lawsuit Lehman Brothers Holdings Inc. filed against JPMorgan Chase Bank, N.A. The directors are Michael Ainslie, John Akers, Roger Berlind, Thomas Cruikshank, Marsha Johnson Evans, Sir Christopher Gent, Jerry Grundhofer, Roland Hernandez, Henry Kaufman and John Macomber. LBHI sued JPMorgan early last year to recover billions of dollars that it allegedly seized as collateral. The bank allegedly threatened to discontinue its services unless LBHI posted excessive collateral. JPMorgan served as LBHI's main clearing bank in the 2008 financial crisis, lending the company's brokerage more than $100 billion a day to settle trades and repurchase agreements. 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: Partial Dismissal of LBS ERISA Suit Granted ------------------------------------------------------------ The U.S. District Court for the Southern District of New York granted in part and denied in part a motion to dismiss a lawsuit relating to the lending practices of Lehman Brothers Holdings, Inc. Beginning in September 2008, Bank of America Securities LLC, Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Countrywide Securities Corporation and LaSalle Financial Services Inc., along with other underwriters and individuals, were named as defendants in several putative class action lawsuits filed in federal and state courts. All of these cases have since been transferred or conditionally transferred to the U.S. District Court for the Southern District of New York under the caption In re Lehman Brothers Securities and Employee Retirement Income Security Act Litigation. Plaintiffs allege that the underwriter defendants violated Section 11 of the Securities Act of 1933, as well as various state laws, by making false or misleading disclosures about the real estate-related investments and mortgage lending practices of Lehman Brothers Holdings, Inc. in connection with various debt and convertible stock offerings of LBHI. Plaintiffs seek unspecified damages. On June 4, 2010, defendants filed a motion to dismiss the class action complaint, and on July 27, 2011, the court granted in part and denied in part the motion. Certain of the allegations in the complaint that purported to support the Section 11 claim against the underwriter defendants were dismissed; others were not dismissed relating to alleged misstatements regarding LBHI's leverage and financial condition, risk management and risk concentrations. 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: FINRA Orders Broker to Repay $2.2-Mil. ------------------------------------------------------- A Financial Industry Regulatory Authority arbitration panel ordered a former broker of Lehman Brothers Holdings Inc. to repay the firm around $2.2 million, according to an August 9, 2011 report by Thomson Reuters. The arbitrators ordered former broker Bryon James Botsford to pay $2 million in compensatory damages and $204,066 in interest for breaching the terms of two promissory notes that he signed in 2008. Mr. Botsford will continue to accumulate a penalty of 3% on the $2 million award from July 20, 2011, until he completely repays the award, Thomson Reuters reported. Mr. Botsford, who is currently employed with Citigroup Global Markets in California, joined Lehman in 2008 in Menlo Park, California, according to FINRA BrokerCheck records. 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: Unable to Provide Info in SEC Form 13-F -------------------------------------------------------- Lehman Brothers Holdings Inc. filed with the U.S. Securities and Exchange Commission on August 12, 2011, a report stating the inability of the company and its brokerage to provide the information required on Form 13F. LBHI said it won't be able to provide the information due to the sale of the major businesses of the company and its brokerage, Lehman Brothers Inc. The company also blamed the filing of administrative and civil rehabilitation cases of its subsidiaries, which comprise parts of its European and Asian businesses that resulted in portions of the securities trading records and systems of the company and LBI unavailable and non- accessible. "As a result of the sale and actions taken by certain creditors with respect to Section 13(f) securities that had been pledged by the [Lehman companies] or their affiliates as collateral to those creditors, the [Lehman companies] cannot compile an accurate accounting of Section 13(f) securities held," the SEC filing said. LBHI said they are currently reconciling discrepancies in information they have with respect to those securities. 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) LINDEN PONDS: Wins Confirmation of Chapter 11 Plan -------------------------------------------------- Hingham Campus, LLC and Linden Ponds, Inc., won approval of their disclosure statement and confirmation of their plan of reorganization at a hearing Aug. 18, only 64 days after the filing of the Debtors' non-prepackaged chapter 11 cases. Bankruptcy Judge Stacey G. C. Jernigan approved the Debtors' disclosure statement on a final basis after conditionally approving the disclosure statement at the first-day hearing and confirmed the Debtors' plan. Pursuant to the plan of reorganization, the Debtors restructured $152 million in municipal bond debt and paid all unsecured creditors in full. The Debtors continued to operate their continuing care retirement community in Hingham, Massachusetts, during the chapter 11 cases and will continue to do so after the effective date of the plan of reorganization. According to Bill Rochelle, the bankruptcy columnist for Bloomberg News, the Debtors' lawyer Thomas Califano of DLA Piper, said "The principal reduction was approximately $900,000." About Linden Ponds Linden Ponds Inc. operates a 108-acre continuing care retirement community located at 300 Linden Ponds Way in Hingham, Massachusetts. The facility has 988 independent living units (with an occupancy rate of 87.9%) and 132 skilled nursing beds (68% occupancy rate). Linden Ponds leases the facility and the property upon which it is built from Hingham Campus LLC. Hingham is the owner of the facility and owns the fee simple interest in the property upon which the facility is built. Senior Living Retirement Communities, LLC, formerly known as Erickson Retirement Communities, LLC, owns 100% of the membership interests in Hingham. Hingham Campus and Linden Ponds filed a pre-negotiated Chapter 11 petition (Bankr. N.D. Tex. Lead Case No. 11-33912) in Dallas on June 15, 2011. Hingham Campus estimated assets and debts of $100 million to $500 million. Debt includes $156.4 million owing on bonds issued by the Massachusetts Development Finance Agency, with Wells Fargo Bank, National Association, as the bond trustee. Erickson Retirement Communities sought bankruptcy protection (Bankr. N.D. Tex. Case No. 09-37010) on Oct. 19, 2009. Erickson, the owner of 20 senior living facilities, won approval of its reorganization plan in April 2010. The Erickson plan provided for a sale to Redwood Capital, the highest bidder at the auction in December 2009. Redwood won the auction with an all-cash bid of $365 million. The DLA Piper team led by Thomas R. Califano (New York), George South (New York), Vince Slusher (Dallas), Jason Karaffa (New York) and Andy Zollinger (Dallas) represent Hingham in the Chapter 11 case. Attorneys at McGuire, Craddock & Strother, P.C., and Whiteford, Taylor And Preston, L.L.P., represent Linden Ponds. LUMEA STAFFING: Two Lumea Inc. Units in Chapter 11 -------------------------------------------------- Two units of Lumea Inc., a human resources industry company, filed for Chapter 11 protection in Phoenix, Arizona. Carla Main at Bloomberg News reports that the largest unsecured creditors of Lumea Staffing Inc. are the Internal Revenue Service, with a disputed claim of $10.37 million, and Easy Staffing Services Inc., with disputed claims of $4.6 million and $1.04 million subject to ongoing civil suits. Other unsecured creditors include state taxing authorities. The IRS and Easy Staffing Services are also the largest unsecured creditors of Lumea Staffing of CA. The IRS has a disputed claim against that debtor for $3.9 million and Easy Staffing has disputed claims of $1.04 million and $4.46 million. Lumea Staffing, Inc., and Lumea Staffing of CA, Inc., filed Chapter 11 petitions (Bankr. D. Ariz. Case Nos. 11-23582 and 11-23585) on Aug. 17, 2011. Dean M. Dinner, Esq., at Nussbaum Gillis & Dinner, P.C., in Scottsdale, Arizona, serves as the Debtors' counsel. The Debtors each estimated assets of up to $500,000 and debts of up to $50 million. MADISON 92ND: Marriott Unit Wants to Use Hotel Revenues ------------------------------------------------------- Courtyard Management Corporation, which manages and operates the Upper East Side Courtyard by Marriott pursuant to an agreement with hotel owner Madison 92nd Street Associates, LLC, asks the Bankruptcy Court: -- for authority to use postpetition revenues generated from the hotel's operation to satisfy the Debtor's postpetition obligations under the parties' Management Agreement; -- for authority to continue using its cash management system in accordance with the Management Agreement, and -- to modify the automatic stay pursuant to 11 U.S.C. Sec. 362(d) and grant it authority to use cash collateral to implement the foregoing. Courtyard Management is a wholly-owned subsidiary of Marriott International, Inc., and is in the business of exclusively managing hotels under the "Courtyard by Marriott" brand. Courtyard by Marriott is a moderately priced lodging brand "designed by business travelers for business travelers." Courtyard Management explained to the Court it is making the request as the Debtor has not filed a motion for authority to use cash collateral, which would enable Courtyard Management to pay postpetition Hotel-related expenses in the ordinary course of business. Courtyard Management said the Debtor continues to incur obligations under the Management Agreement to both its vendors and to Courtyard Management. Cash generated from operating the Hotel is being held by Courtyard Management in its accounts pending further instruction from the Court. Without Court authority, Courtyard Management said it would be in the untenable position of either allowing postpetition expenses to go unpaid, or alternatively, involuntarily financing the Debtor's operations. Courtyard Management acknowledges the revenues generated through operation of the Hotel are likely the "cash collateral" of various parties-in-interest in the chapter 11 case, including itself. Bloomberg News has reported that the Debtor's majority equity holders are working with Westport Capital Partners LLC to line up refinancing. Pursuant to the Management Agreement, dated Oct. 7, 2002, as amended, Courtyard Management engages various vendors to provide goods and render services relating to the Hotel on behalf of the Debtor. Prior to the Debtor's bankruptcy filing, Courtyard Management paid for the goods and services from the gross revenues generated from the operation of the Hotel, which includes the rental of guest rooms to Hotel customers. The Hotel's revenue is forecasted to exceed expenses on a period to period basis through the end of 2011. Prior to the bankruptcy filing, after payment of the expenses and the fees earned by Courtyard Management for managing the Hotel, the balance of the revenues were forwarded to the Debtor's pre-petition secured lender, General Electric Credit Corporation. In a declaration filed by the Debtor's representative as required by Rule 1007-1 of the Local Rules of the Bankruptcy Court, the Debtor has alleged fraud, mismanagement and breach of contract against Courtyard Management, most of which have already been dismissed in the prepetition litigation between the Debtor and Courtyard Management, and all of which Courtyard Management refutes. According to Courtyard Management, the Debtor has stated it intends to reject the Management Agreement but presumably, for the time being, expects Courtyard Management to continue performing under the Management Agreement. On July 19, 2010, in the case captioned, Madison 92nd Street Associates, LLC v. Courtyard Management Corporation, Index No. 602762/09 (Supreme Court, New York County), the state court dismissed the Debtor's claims for misrepresentation/fraud and breach of fiduciary duty. About Madison 92nd Street Associates Madison 92nd Street Associates, LLC, owns real property improved by a hotel located at 410 East 92nd Street, New York, known as the Upper East Side Courtyard by Marriott. It filed for Chapter 11 bankruptcy protection as lender General Electric Capital Corp., owed $74 million, has scheduled a foreclosure sale for Aug. 24, 2011. The petition (Bankr. S.D.N.Y Case No. 11-13917) was filed Aug. 16, 2011, before Judge Stuart M. Bernstein. J. Ted Donovan, Esq., at Goldberg Weprin Finkel Goldstein LLP, serves as the Debtor's counsel. It scheduled $84,471,069 in assets and $75,398,580 in debts. The petition was signed by Louis Taic, managing member of 92nd Hotel Associates, LLC and Jeffrey Kosow, managing member of JKNY, LLC, members of the Debtor. Courtyard Management Corporation, which manages and operates the hotel pursuant to a management agreement, is represented by: Thomas R. Califano, Esq. William M. Goldman, Esq. DLA PIPER LLP (US) 1251 Avenue of the Americas New York, NY 10020 Telephone: (212) 335-4500 Facsimile: (212) 335-4501 E-mail: william.m.goldman@dlapiper.com thomas.califano@dlapiper.com MADISON 92ND: Initial Case Conference Set for Sept. 22 ------------------------------------------------------ The Bankruptcy Court will hold an initial case conference in the chapter 11 case of Madison 92nd Street Associates, LLC, on Sept. 22, 2011, at 10:00 a.m. at Courtroom 723. Madison 92nd Street Associates, LLC, owns real property improved by a hotel located at 410 East 92nd Street, New York, known as the Upper East Side Courtyard by Marriott. It filed for Chapter 11 bankruptcy protection as lender General Electric Capital Corp., owed $74 million, has scheduled a foreclosure sale for Aug. 24, 2011. The petition (Bankr. S.D.N.Y Case No. 11-13917) was filed Aug. 16, 2011, before Judge Stuart M. Bernstein. J. Ted Donovan, Esq., at Goldberg Weprin Finkel Goldstein LLP, serves as the Debtor's counsel. It scheduled $84,471,069 in assets and $75,398,580 in debts. The petition was signed by Louis Taic, managing member of 92nd Hotel Associates, LLC and Jeffrey Kosow, managing member of JKNY, LLC, members of the Debtor. Courtyard Management Corporation, which manages and operates the hotel pursuant to a management agreement, is represented by lawyers at DLA Piper LLP (US). MANISTIQUE PAPERS: RBS Wants Chapter 7 Liquidation -------------------------------------------------- Carla Main at Bloomberg News reports that lender, RBS Citizens NA, is asking the bankruptcy court to order the appointment of a trustee to liquidate Manistique Papers Inc.'s assets. According to the report, RBS Citizens wants U.S. Bankruptcy Judge Kevin J. Carey to convert Manistique's bankruptcy from a Chapter 11 case, which is used by companies that want to reorganize and continue operating, to a Chapter 7 case, which is designed to liquidate assets and put the proceeds in the hands of creditors as quickly as possible. Under Chapter 11, management remains in charge of the bankruptcy, while in Chapter 7, a court-appointed trustee oversees the liquidation. RBS Citizens said a trustee would be cheaper. About Manistique Papers Manistique Papers Inc. operates a landfill in Manistique, Michigan, whereby residuals resulting from paper production are deposited. Manistique Papers Inc. filed for Chapter 11 bankruptcy protection (Bankr. District of Del. Case No. 11-12562) on Aug. 12, 2011. Daniel B. Butz, Esq., and Eric D. Schwartz, Esq., at Morris, Nichols, Arsht & Tunnell LLP, serves as the Debtor's bankruptcy counsel. Manistique Papers estimated assets of $10 million to $50 million and debts of $50 million to $100 million in its Chapter 11 petition. MARITIME COMMUNICATIONS: 341 Meeting of Creditors on Sept. 23 ------------------------------------------------------------- An 11 U.S.C. Sec. 341(a) meeting of creditors of Maritime Communications/Land Mobile, LLC is set for Sept. 23, 2011, at 11:30 a.m. The meeting will be held at: Cochran U.S. Bankruptcy Courthouse, 703 Highway 145 North, Aberdeen, MS 39730 The creditors of Maritime Communications/Land Mobile are required to file their proofs of debt by Nov. 11, 2011 (except a governmental unit) and Jan. 20, 2012 for government unit. Maritime Communications/Land Mobile, LLC filed a Chapter 11 petition, (Bankr. D.N.J. Case No. 11-13463) on Aug. 1, 2011, in Aberdeeen, Mississippi, Craig M. Geno, Esq. at Harris Jernigan & Geno, Pllc, in Ridgeland, Mississippi, serves as counsel to the Debtor. The Debtor estimated up to $50 million in assets and up to $50 million in liabilities. MARKETING WORLDWIDE: Incurs $540,000 Net Loss in June 30 Quarter ---------------------------------------------------------------- Marketing Worldwide Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $539,993 on $449,235 of revenue for the three months ended June 30, 2011, compared with net income of $695,852 on $1.05 million of revenue for the same period a year ago. The Company also reported a net loss of $1.12 million on $1.31 million of revenue for the nine months ended June 30, 2011, compared with a net loss of $1.34 million on $3.22 million of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $1.66 million in total assets, $5.23 million in total liabilities, $3.50 million in Series A convertible preferred stock, and a $7.07 million total stockholders' deficiency. A full-text copy of the Form 10-Q is available for free at: http://is.gd/QCgsDz About Marketing Worldwide Based in Howell, Michigan, Marketing Worldwide Corporation operates through the holding company structure and conducts its business operations through its wholly owned subsidiaries Colortek, Inc., and Marketing Worldwide, LLC. Marketing Worldwide, LLC, is a complete design, manufacturer and fulfillment business providing accessories for the customization of vehicles and delivers its products to large global automobile manufacturers and certain Vehicle Processing Centers primarily in North America. MWW operates in a 23,000 square foot leased building in Howell Michigan. Colortek, Inc., is a Class A Original Equipment painting facility and operates in a 46,000 square foot owned building in Baroda, which is in South Western Michigan. MWW invested approximately $2 million into this paint facility and expects the majority of its future growth to come from this business. As reported in the Troubled Company Reporter on Jan. 24, 2011, Marcum LLP, in New York, expressed substantial doubt about Marketing Worldwide's ability to continue as a going concern, following the Company's results for the fiscal year ended Sept. 30, 2010. The independent auditors noted that the Company has a working capital deficiency and has suffered substantial recurring losses from operations. MAQ MANAGEMENT: U.S. Trustee Will Not Appoint Creditors Committee ----------------------------------------------------------------- The U.S. Trustee announced that until further notice, it will not appoint a committee of creditors for the bankruptcy case of MAQ Management, Inc., pursuant to 11 U.S.C. Sec. 1102. Based in Boca Raton, Florida, MAQ Management, Inc., and three other affiliates serve as commercial landlords to convenience stores and gas stations in primarily in South Florida. They filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Cases No. 11-26571 to 11-26574) on June 15, 2011. Affiliates that sought Chapter 11 protection are Super Stop Petroleum, Inc., Super Stop Petroleum I, Inc., and Super Stop Petroleum IV, Inc. Judge Erik P. Kimball presides over the case. Lawyers at Talarchyk Merrill, LLC, serve as the Debtors' counsel. MAQ Management estimated assets and debts of $1 million to $10 million. Super Stop estimated assets and debts of $10 million to $50 million. The petitions were signed by Mahammad A. Qureshi, CEO. MEDCLEAN TECHNOLOGIES: Incurs $1.47-Mil. Second Quarter Net Loss ---------------------------------------------------------------- MedClean Technologies, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $1.47 million on $190,557 of total revenues for the three months ended June 30, 2011, compared with a net loss of $1.16 million on $131,758 of total revenues for the same period during the prior year. The Company also reported a net loss of $3.04 million on $784,181 of total revenues for the six months ended June 30, 2011, compared with a net loss of $2.75 million on $400,625 of total revenues for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $1.41 million in total assets, $2.22 million in total liabilities, and a $806,655 total stockholders' deficit. As reported in the TCR on April 6, 2011, Child, Van Wagoner & Bradshaw, PLLC, in Salt Lake City, Utah, expressed substantial doubt about the MedClean Technologies' ability to meet its obligations and to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has incurred substantial recurring losses. The Company was not able to obtain all information prior to filing date and management was not able to complete the required financial statements and Management's Discussion and Analysis of such financial statements by Aug. 15, 2011. As a result, the Company was late in filing its Quarterly Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/RIETVx About MedClean Technologies Based in Bethel, Connecticut, MedClean Technologies, Inc., provides solutions for managing medical waste on site including designing, selling, installing and servicing on site (i.e. "in- situ") turnkey systems to treat regulated medical waste. MEDL MOBILE: Widens Second Quarter Net Loss to $228,900 ------------------------------------------------------- MEDL Mobile Holdings, Inc., formerly Resume in Minutes, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $228,915 on $573,068 of revenues for the three months ended June 30, 2011, compared with a net loss of $12,644 on $168,450 of revenues for the same period last year. The Company reported a net loss of $207,991 on $951,723 of revenues for the six months ended June 30, 2011, compared with a net loss of $12,417 on $294,847 of revenues for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $2.36 million in total assets, $23,586 in total liabilities, and stockholders' equity of $2.34 million. While the Company has been generating revenues from various development contracts, the Company has generated losses totaling $207,991 and $12,417 for the six months ended June 30, 2011, and 2010, respectively, and $263,019 since March 4, 2009 (inception). "The Company may need to raise additional funds to carry out its business plan," the Company said in the filing. "The successful outcome of future financing activities cannot be determined at this time and there is no assurance that if achieved, the Company will have sufficient funds to execute its intended business plan or generate positive operating results. "The continuation of the Company as a going concern is dependent upon the ability of the Company to generate sufficient cash flow to support its operations or obtain financing to continue operations. The Company has had limited operating history to date. "These factors raise substantial doubt regarding the ability of the Company to continue as a going concern." A copy of the Form 10-Q is available at http://is.gd/KkI3Kw Fountain Valley, Calif.-based MEDL Mobile Holdings, Inc., is primarily engaged in the monetization of mobile application software or "Apps" through four revenue generating platforms: (i) development of customized Apps for third parties to monetize their particular intellectual property, persona or brand, (ii) incubation of Apps in partnership with third parties and from a library of more than 75,000 original Apps concept submissions, (iii) sale of advertising and sponsorship opportunities directly to brands via mobile advertising networks, and (iv) acquisition of Apps from other developers and use of a proprietary application programming interface, or API, to make Apps recommendations for the Company's user base. MESA AIR: Wants Until Sept. 22 to Object to Claims -------------------------------------------------- Mesa Air Group, Inc. and its debtor-subsidiaries, as Reorganized Debtors, sought and obtained an order from Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York extending by 30 days the date by which objections to claims must be filed, from August 23, 2011 through and including September 22, 2011. The Third Amended Chapter 11 Plan of Mesa Air Group, Inc., et al., which became effective on March 1, 2011, provides that the Reorganized Debtors will have 175 days from the Effective Date to object to proofs of claim. Pursuant to the Plan, the Claims Objection Deadline expires on August 23, 2011. The Plan further provides that the Deadline may be extended upon motion to the Court. While a substantial portion of the claims reconciliation process has been completed, the Reorganized Debtors require additional time to continue negotiations with certain claimants in an effort to resolve the claims without the need to file objections, and to finalize the claims reconciliation process, John W. Lucas, Esq., at Pachulski Stang Ziehl & Jones LLP, in New York, says. The Reorganized Debtors intend to file certain administrative objections for the purpose of removing from the claims register those claims that have been resolved, paid, or satisfied through the terms of the Plan, according to Mr. Lucas. Because these matters are ongoing, the Reorganized Debtors require an extension of the Claims Objection Deadline to ensure that the claims reconciliation process proceeds appropriately and that any remaining disputed claims are not inadvertently overlooked or any allowed claims double counted, Mr. Lucas tells the Court. He assures the Court that the requested extension is not sought for improper dilatory purposes and will not unduly prejudice any claimants. About Mesa Air Mesa Air currently operates 76 aircraft with approximately 450 daily system departures to 94 cities, 38 states, the District of Columbia, and Mexico. Mesa operates as US Airways Express and United Express under contractual agreements with US Airways and United Airlines, respectively, and independently as go! Mokulele. This operation links Honolulu to the neighbor island airports of Hilo, Kahului, Kona and Lihue. The Company was founded by Larry and Janie Risley in New Mexico in 1982. Mesa Air Group Inc. and its units filed their Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 10-10018) on Jan. 5, 2010, in New York, listing assets of $976 million against debt totaling $869 million as of Sept. 30, 2009. Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as local counsel to the Debtors. Imperial Capital LLC is the investment banker. Epiq Bankruptcy Solutions is claims and notice agent. Brett Miller, Esq., Lorenzo Marinuzzi, Esq., and Todd Goren, Esq., at Morrison & Foerster LLP, serve as counsel to the Official Committee of Unsecured Creditors. Judge Martin Glenn entered a final order confirming the Third Amended Joint Plan of Reorganization of Mesa Air Group, Inc., and its debtor affiliates on Jan. 20, 2011. Under the plan, the reorganized company will issue new notes, common stock and warrants to creditors. Unsecured creditors that are U.S. citizens will receive a combination of new notes and new common stock, while unsecured creditors that are Non-U.S. citizens will receive a combination of new notes and new warrants. An agreement with US Airways paved way for the filing of the plan. Mesa Air's Plan of Reorganization became effective March 1, 2011. The Company's restructuring accomplishments included elimination of 100 excess aircraft and associated leases and debt which contributed to the deleveraging of Mesa's balance sheet in the approximate amount of $700 million in capitalized leases and $50 million in debt, and extending the term of the code-share agreement with US Airways through September 2015. Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Mesa Air Group Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000). MESA AIR: Reaches Claims Settlement With Travis County ------------------------------------------------------ Reorganized Mesa Air, the Liquidating Debtors, and the Travis County, in Texas, have entered into a post-Effective Date settlement agreement, with the consent and agreement of the Post- Effective Date Committee. The Claimant has filed (i) Claim No. 1449 for $1,321,013, and (ii) Claim No. 1673, which supersedes Claim No. 1449, for $1,305,676, as a secured tax claim for 2009 and 2010 personal property taxes. The parties agree that Claim No. 1673 will be treated as (i) $644,726, representing the principal amount outstanding for 2009 secured personal property taxes plus interest through February 28, 2011, is allowed as a Secured Tax Claim against Mesa Airlines, Inc.; and (ii) $636,367, representing the principal amount outstanding for 2010 secured personal property taxes plus interest through February 28, 2011, is allowed as a Secured Tax Claim against Mesa Airlines. All other amounts asserted by Claim No. 1673 are disallowed. Interest will be paid on the 2009 Allowed Secured Tax Claim and the 2010 Allowed Secured Tax Claim at the rate of 12% per annum from the Effective Date. Claim No. 1449 will be disallowed and expunged from the claims register. Each party will be responsible for its own costs and expenses. About Mesa Air Mesa Air currently operates 76 aircraft with approximately 450 daily system departures to 94 cities, 38 states, the District of Columbia, and Mexico. Mesa operates as US Airways Express and United Express under contractual agreements with US Airways and United Airlines, respectively, and independently as go! Mokulele. This operation links Honolulu to the neighbor island airports of Hilo, Kahului, Kona and Lihue. The Company was founded by Larry and Janie Risley in New Mexico in 1982. Mesa Air Group Inc. and its units filed their Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 10-10018) on Jan. 5, 2010, in New York, listing assets of $976 million against debt totaling $869 million as of Sept. 30, 2009. Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as local counsel to the Debtors. Imperial Capital LLC is the investment banker. Epiq Bankruptcy Solutions is claims and notice agent. Brett Miller, Esq., Lorenzo Marinuzzi, Esq., and Todd Goren, Esq., at Morrison & Foerster LLP, serve as counsel to the Official Committee of Unsecured Creditors. Judge Martin Glenn entered a final order confirming the Third Amended Joint Plan of Reorganization of Mesa Air Group, Inc., and its debtor affiliates on Jan. 20, 2011. Under the plan, the reorganized company will issue new notes, common stock and warrants to creditors. Unsecured creditors that are U.S. citizens will receive a combination of new notes and new common stock, while unsecured creditors that are Non-U.S. citizens will receive a combination of new notes and new warrants. An agreement with US Airways paved way for the filing of the plan. Mesa Air's Plan of Reorganization became effective March 1, 2011. The Company's restructuring accomplishments included elimination of 100 excess aircraft and associated leases and debt which contributed to the deleveraging of Mesa's balance sheet in the approximate amount of $700 million in capitalized leases and $50 million in debt, and extending the term of the code-share agreement with US Airways through September 2015. Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Mesa Air Group Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000). MESA AIR: HSH Nordbank, et al., Transfer Claims to Bridge Business ------------------------------------------------------------------ HSH Nordbank AG notifies the Court of its intention to sell, trade, or otherwise transfer its interests, aggregating $28,309,236, in (i) 76.81% of Claim Nos. 1472 and 1167, and (ii) 36.29% of Claim Nos. 1475 and 1182, which are held in the legal name of its indenture trustee, U.S. Bank, National Association, to Bridge Business Services, LLC. Landesbank Baden-Wurttemberg intends to sell, trade, or otherwise transfer its interests, aggregating $10,190,318, in 40.67% of Claim Nos. 1475 and 1182, which claims are held in the legal name of its indenture trustee, U.S. Bank, to Bridge Business Services, LLC. Bank of Scotland PLC proposes to sell, trade, or otherwise transfer its interests in (i) 23.18% of Claim Nos. 1472 and 1167, and (ii) 23.03% of Claim Nos. 1475 and 1182, which claims are held in the legal name of its indenture trustee, U.S. Bank, to Bridge Business Services, LLC. Bank of Scotland's interests in the claims aggregate $11,570,896. Bridge Business also gives notice to the Court of its intention to purchase, acquire or otherwise accumulate the Claims. It currently beneficially owns Allowed or Disputed Claims against the Debtors in the aggregate principal amount of $57,256,244, and zero shares of New Common Stock, zero New Warrants, and zero 2023 Notes or 2024 Notes. Once the proposed transfer from HSH Nordbank occurs, Bridge Business will beneficially own claims against the Debtors in the aggregate principal amount of $85,565,480, plus an additional $21,761,214 of claims being sold to it by Landesbank and Bank of Scotland. If all of the proposed transfers occur, Bridge Business will hold an aggregate of $107,326,695 in claims. Transfers to Riva Ridge Master Fund HSH NordBank AG notifies the Court of its intention to sell, trade, or otherwise transfer its interest in Claim No. 1473 in the allowed amount of $7,452,324 against Mesa Airlines, Inc. to Riva Ridge Master Fund, Ltd. In another filing, Landesbank Baden-Wurttemberg informs the Court of its intention to sell, trade, or otherwise transfer is interest in Claim No. 1473 in the allowed amount of $7,560,830 against Mesa Airlines to Riva Ridge Master Fund. Riva Ridge Master Fund also notifies the Court of its intention to purchase, acquire, or otherwise accumulate the Claims. Before the distributions under the Plan were effected, Riva Ridge Master Fund or its affiliates beneficially owned Allowed or Disputed Claims against the Debtors in the aggregate principal amount of $92,601,383, which claims have received distributions of (i) New Warrants convertible into 204,482 shares of New Common Stock and (ii) $1,194,493 of New Notes. Once the proposed transfers occur, Riva Ridge Master Fund will beneficially own Claims in the aggregate principal amount of $107,614,537, which corresponds to New Warrants convertible into 252,431 shares of New Common Stock and $1,473,143 of New Notes. (3) Transfers to DG Value Parties HSH Nordbank AG informs the Court of its intention to sell, trade, or otherwise transfer its interests in claims aggregating $14,955,899 to these entities: (a) $6,580,595 to DG Value Partners, LP; (b) $4,337,210 to Special Situations X, LLC; (c) $1,645,148 to Special Situations, LLC; and (d) $2,392,943 to Azimuth Opportunity LP. HSH Nordbank is proposing to transfer its interests in (i) Claim No. 1174 in the allowed amount of $7,477,949 against Mesa Air Group, Inc., and (ii) Claim No. 1474 in the allowed amount of $7,477,948 against Mesa Airlines, Inc. Landesbank Baden-Wurttemberg, in another filing, notifies the Court of its intention to sell, trade, or otherwise transfer claims aggregating $15,169,548 to the DG Value Parties: (a) $6,674,601 to DG Value Partners, LP; (b) $4,399,169 to Special Situations X, LLC; (c) $1,668,650 to Special Situations, LLC; and (d) $2,427,127 to Azimuth Opportunity LP. Landesbank proposes to transfer its interests in (i) Claim No. 1174 in the allowed amount of $7,584,774 against Mesa Air Group and (ii) Claim No. 1474 in the allowed amount of $7,584,774 against Mesa Airlines. The DG Value Parties also provide notice to the Court of their intention to purchase, acquire or otherwise accumulate the Claims. The DG Value Parties currently beneficially owns Allowed or Dispute Claims against the Debtors in the aggregate principal amount of $45,678,156 and, other than proceeds of these claims, zero shares of New Common Stock, zero New Warrants, and zero 2023 Notes of 2024 Notes. Once the proposed transfers occur, the DG Value Parties will beneficially own Claims against the Debtors in the aggregate principal amount of $75,803,605. In addition, under a separate transaction from another creditor, the DG Value Parties are in the process of acquiring an aggregate $28,166,188 of claims against the Debtors. About Mesa Air Mesa Air currently operates 76 aircraft with approximately 450 daily system departures to 94 cities, 38 states, the District of Columbia, and Mexico. Mesa operates as US Airways Express and United Express under contractual agreements with US Airways and United Airlines, respectively, and independently as go! Mokulele. This operation links Honolulu to the neighbor island airports of Hilo, Kahului, Kona and Lihue. The Company was founded by Larry and Janie Risley in New Mexico in 1982. Mesa Air Group Inc. and its units filed their Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 10-10018) on Jan. 5, 2010, in New York, listing assets of $976 million against debt totaling $869 million as of Sept. 30, 2009. Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as local counsel to the Debtors. Imperial Capital LLC is the investment banker. Epiq Bankruptcy Solutions is claims and notice agent. Brett Miller, Esq., Lorenzo Marinuzzi, Esq., and Todd Goren, Esq., at Morrison & Foerster LLP, serve as counsel to the Official Committee of Unsecured Creditors. Judge Martin Glenn entered a final order confirming the Third Amended Joint Plan of Reorganization of Mesa Air Group, Inc., and its debtor affiliates on Jan. 20, 2011. Under the plan, the reorganized company will issue new notes, common stock and warrants to creditors. Unsecured creditors that are U.S. citizens will receive a combination of new notes and new common stock, while unsecured creditors that are Non-U.S. citizens will receive a combination of new notes and new warrants. An agreement with US Airways paved way for the filing of the plan. Mesa Air's Plan of Reorganization became effective March 1, 2011. The Company's restructuring accomplishments included elimination of 100 excess aircraft and associated leases and debt which contributed to the deleveraging of Mesa's balance sheet in the approximate amount of $700 million in capitalized leases and $50 million in debt, and extending the term of the code-share agreement with US Airways through September 2015. Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Mesa Air Group Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000). MMRGLOBAL INC: Incurs $2.3 Million Net Loss in Second Quarter ------------------------------------------------------------- MMRGlobal, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $2.37 million on $165,637 of total revenues for the three months ended June 30, 2011, compared with a net loss of $7.86 million on $196,097 of total revenues for the same period a year ago. The Company also reported a net loss of $4.10 million on $737,618 of total revenues for the six months ended June 30, 2011, compared with a net loss of $14.32 million on $286,261 of total revenues for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $2.24 million in total assets, $6.27 million in total liabilities and a $4.02 million total stockholders' deficit. "MMRGlobal is a company in the right place at the right time as we watch the global transformation of healthcare," said Robert H. Lorsch, MMRGlobal Chairman, president and chief executive officer. "We are focused on generating revenue through direct to consumer sales of MyMedicalRecords.com and professional sales of MMRPro along with patient upgrades. We are also focused on monetizing our strategic relationships with companies like Kodak, Chartis, Alcatel-Lucent, VisiInc in Australia and Unis-Tonghe in China." A full-text copy of the Form 10-Q is available for free at: http://is.gd/aHNrBu About MMRGlobal Los Angeles, Calif.-based MMR Global, Inc. (OTC BB: MMRF) -- http://www.mmrglobal.com/-- through its wholly-owned operating subsidiary, MyMedicalRecords, Inc., provides secure and easy-to- use online Personal Health Records (PHRs) and electronic safe deposit box storage solutions, serving consumers, healthcare professionals, employers, insurance companies, financial institutions, and professional organizations and affinity groups. As reported by the TCR on April 7, 2011, Rose, Snyder & Jacobs, in Encino, Calif., expressed substantial doubt about MMRGlobal's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant operating losses and negative cash flows from operations during the year ended Dec. 31, 2010, and 2009. The Company reported a net loss of $17.9 million on $972,988 of revenues for 2010, compared with a net loss of $10.3 million on $619,249 of revenues for 2009. MORTGAGEBROKERS.COM: Incurs $145,985 Net Loss in Second Quarter --------------------------------------------------------------- MortgageBrokers.com Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $145,985 on $4.09 million of revenue for the three months ended June 30, 2011, compared with a net loss of $65,807 on $4.46 million of revenue for the same period during the prior year. The Company also reported a net loss of $334,295 on $7.02 million of revenue for the six months ended June 30, 2011, compared with a net loss of $147,465 on $7.59 million of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $2.10 million in total assets, $3.59 million in total liabilities, and a $1.49 million total stockholders' deficit. The Company reported a net loss of $494,009 on $14.28 million of revenue for the year ended Dec. 31, 2010, compared with net income of $863,679 on $16.85 million of revenue during the prior year. As reported by the TCR on April 25, 2011, McGovern, Hurley, Cunningham, LLP, in Toronto, Canada, noted that the Company's operating losses, negative working capital, and total capital deficiency 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/pDpc4C About MortgageBrokers.com Holdings Based in Toronto, Canada, MortgageBrokers.com Holdings, Inc., provides mortgage brokerage services in the Canadian provincial markets of Newfoundland, Nova Scotia, New Brunswick, Prince Edward Island, Ontario, Saskatchewan and Alberta. MOUNT LEBANON: Christian Care Acquires Memorial Home for $3 Mil. ---------------------------------------------------------------- Steve Ivey at the Louisville Business Journal reports that Christian Care Communities Inc. has purchased the former James S. Taylor Memorial Home in Louisville's West End from Mt. Lebanon Personal Care Home Inc. for $3 million and plans to renovate the home before reopening it late this year. According to the report, Keith Knapp, president and CEO of Christian Care Communities, said the nonprofit organization plans to invest about $1.6 million to upgrade the facility, which will have 92 beds. The reopening also will bring 100 jobs back to the community. Mr. Knapp said U.S. Bankruptcy Judge David T. Stosberg approved the sale earlier this summer largely because Christian Care Communities' bid included a promise to keep the West End home in its current location at 1015 W. Magazine St. Based in Louisville, Kentucky, Mount Lebanon Personal Care Home dba James S. Taylor Memorial Home filed for Chapter 11 bankruptcy protection (Bankr. W.D. Kent. Case No. 10-34999) on Sept. 21, 2010. Gordon A. Rowe, Jr., Esq., at Law Office of Gordon Rowe, represents the Debtor. The Debtor disclosed $5.92 million in total assets, and $7.03 million in total debts. MT. VERNON: Can Use Cash Collateral for Operating Expenses ---------------------------------------------------------- Judge David E. Rice approved the application of Mt. Vernon Properties, LLC, to use cash collateral of Fannie Mae, City National Bank and Colombo Bank. The Debtor will use up to $58,506.87 in cash collateral in accordance with a budget for the Debtor's operating expenses. Judge Rice orders the Debtor to deposit $20,952, $26,179, and $6,513, into three separate DIP escrow accounts naming Fannie Mae, City National Bank and Colombo Bank as beneficiaries. These amounts represent net operating income from the Lenders' respective properties. As adequate protection for the use of cash collateral, Fannie Mae and City National Bank will receive postpetition liens on the Debtor's assets to the same extent and priority that they had valid, perfected, unavoidable liens in the Debtor's assets prepetition. The final hearing on the cash collateral motion will be held on Aug. 24, 2011, at 2:30 p.m. City National Bank has objected to the Debtor's motion for authority to use its cash collateral. City National relates that the use should be conditioned on granting adequate protection to the Bank, which must, at a minimum, include: a. adherence by the Debtor to an operating budget acceptable to CNB; b. adequate protection payments; c. replacement liens in all assets of the Debtor which liens will be first and prior liens; d. immediate redress in the event of a default by the Debtor under its obligations upon which use of Cash Collateral is conditioned; and e. CNB receiving a super-priority administrative claim to the extent CNB suffers a failure of adequate protection. City National Bank is represented by: Susan C. Scanlon, Esq. WEINSTOCK, FRIEDMAN & FRIEDMAN, P.A. Executive Centre, 4 Reservoir Circle Baltimore, Maryland 21208-7301 Tel: (410) 559-9000 E-mail: susan.scanlon@weinstocklegal.com About Mt. Vernon Properties Mt. Vernon Properties, LLC, based in Baltimore, Maryland, is the owner of many parcels of real property located in Baltimore City that the Debtor operates as multi-family rentl properties. The Company filed for Chapter 11 bankruptcy (Bankr. D. Md. Case No. 11-24801) on July 18, 2011. Judge David E. Rice presides over the case. Aryeh E. Stein, Esq., at Meridian Law, LLC, in Baltimore, serves as bankruptcy counsel. In its petition, the Debtor estimated assets and debts of $10 million to $50 million. The petition was signed by Ronald Persaud, managing member of Mt. Vernon Properties II LLC, the Debtor's sole member. NANCY SILVERMAN: Puts Georgetown Saloon Up For Sale --------------------------------------------------- Susan Tuz at newstimes.com reports that the Georgetown Saloon owned by Nancy Silverman is up for sale. Ms. Silverman filed for Chapter 11 bankruptcy in June and proposed a plan to reorganize and to keep the business alive while paying creditors. According to the U.S. Trustee's Web site, by Section 363 of the Bankruptcy Code, a buyer can purchase the business without buying the financial problems that led to the bankruptcy filing, through proper court motion. For information on The Georgetown Saloon, contact: Steve Matsis Pyramid Restaurant Group Tel: (203) 348-8566. NATIONAL AUTOMATION: Incurs $505,000 Net Loss in Second Quarter --------------------------------------------------------------- National Automation Services, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $505,378 on $68,804 of revenue for the three months ended June 30, 2011, compared with a net loss of $819,527 on $948,127 of revenue for the same period a year ago. The Company also reported net income of $1.73 million on $289,350 of revenue for the six months ended June 30, 2011, compared with a net loss of $1.48 million on $1.31 million of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $581,249 in total assets, $2.82 million in total liabilities, and a $2.23 million total stockholders' deficit. The Company said its operating revenues are insufficient to fund its operations. Although the Company has experienced recurring net losses, it had a net income for the six months ended June 30, 2011, which is attributable to the Company's write-off of Trafalgar debt per the Company's settlement agreement with Trafalgar Capital on March 25, 2011. The Company reported a net loss of $2.88 million on $1.95 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $4.88 million on $3.74 million of revenue during the prior year. As reported by the TCR on April 20, 2011, Lynda R. Keeton CPA, LLC, in Henderson, NV, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company has working capital deficiencies and continued net losses. A full-text copy of the Form 10-Q is available for free at: http://is.gd/N7RLbH About National Automation Henderson, Nev.-based National Automation Services, Inc. (Pinksheets: NASV) -- http://www.nasautomation.com/-- is a holding company formed to acquire and operate specialized automation control companies located in the Southwestern United States. Currently, the Company owns 100% of the capital stock of two operating subsidiaries: (1) Intuitive Solutions, Inc., a Nevada corporation, based in Henderson, Nevada, and (2) Intecon, Inc., an Arizona corporation, based in Tempe, Arizona. NEW GENERATION: Incurs $1.9 Million Second Quarter Net Loss ----------------------------------------------------------- New Generation Biofuels Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $1.89 million on $0 of total revenue for the three months ended June 30, 2011, compared with a net loss of $2.98 million on $0 of total revenue for the same period during the prior year. The Company also reported a net loss of $4.24 million on $0 of total revenue for the six months ended June 30, 2011, compared with a net loss of $5.92 million on $6,477 of total revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $5.99 million in total assets, $7.23 million in total liabilities, and a $1.24 million total stockholders' deficit. Reznick Group, P.C., in Vienna, Va., expressed substantial doubt about New Generation Biofuels Holdings' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has experienced negative cash flows from operations since inception and is dependent upon future financing in order to meet its planned operating activities. The Company said it is seeking to raise additional capital through public or private placement offerings and targeting strategic partners. The ability of the Company to continue as a going concern is dependent upon the success of capital offerings or alternative financing arrangements and expansion of its operations. If the Company is unsuccessful in raising additional capital from any of these sources, it will defer, reduce, or eliminate certain planned expenditures. The Company will continue to consider other financing alternatives. There can be no assurance that the Company will be able to obtain any sources of financing on acceptable terms, or at all. If the Company cannot obtain sufficient additional financing in the short-term, it may be forced to restructure or significantly curtail its operations, file for bankruptcy or cease operations. A full-text copy of the Form 10Q is available for free at: http://is.gd/BdXVbo About New Generation Columbia, Md.-based New Generation Biofuels Holdings, Inc., is a clean energy company deploying novel technologies to produce cleaner, renewable biofuels. The Company has rights to a portfolio of patented and patent pending technology to manufacture alternative biofuels from plant oils, animal fats and related oils, which it markets as a new class of biofuel for power generation, commercial and industrial heating, and related uses. NEW LEAF: Delays Filing of Quarterly Report on Form 10-Q -------------------------------------------------------- New Leaf Brands, Inc., informed the U.S. Securities and Exchange Commission that it will be late in filing its quarterly report on Form 10-Q for the period ended June 30, 2011. The Company requires additional time to complete the review of its financial statements in order to complete the 10-Q prior to filing. About New Leaf Brands Scottsdale, Ariz.-based New Leaf Brands, Inc. develops, markets and distributes healthy and functional ready-to-drink teas under the New Leaf(R) brand. The Company reported a net loss of $9.13 million on $4.25 million of net sales for the year ended Dec. 31, 2010, compared with a net loss of $10.93 million on $3.45 million of net sales for the same period during the prior year. As reported by the TCR on June 2, 2011, Mayer Hoffman McCann P.C., in Phoenix, Arizona, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations, has a working capital deficiency, was not in compliance with certain financial covenants related to debt agreements, and has a significant amount of debt maturing in 2010. Mayer Hoffman issued negative going concern qualifications following the release of the 2009 and 2010 results. NEWPAGE CORP: Said to Have Filed for Bankruptcy Tuesday ------------------------------------------------------- The Cape Breton Post reports that Mayor Billy Joe MacLean of Port Hawkesbury in Nova Scotia, Canada, said NewPage Corp. filed for Chapter 11 bankruptcy protection Tuesday afternoon. According to the Post, the mayor held an emergency council meeting Tuesday to discuss a NewPage mill's impending shutdown. The mayor requested the session be held in-camera. "It's private and confidential, the information we're going to give," Mr. MacLean said, citing the sensitive nature of some phone calls he's received over the past two days and the potential financial impact on the town, according to the report. The Post reports that members of the media were asked to leave the upstairs boardroom of the Port Hawkesbury Civic Centre. After the meeting was adjourned, mayor and council offered no comment to media on their discussions, the Post relates. 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. Bankruptcy Warning As reported by the Troubled Company Reporter on Aug. 22, NewPage said in regulatory filings it 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 said it 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. NewPage has 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. 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'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. * * * 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." NEXTWAVE WIRELESS: Posts $65.4 Million Net Loss in Q2 Ended July 2 ------------------------------------------------------------------ NextWave Wireless Inc. filed its quarterly report on Form 10-Q, reporting a net loss of $65.4 million for the three months ended July 2, 2011, compared with a net loss of $72.9 million for the three months ended July 3, 2010. The Company reported a net loss of $126.4 million for the six months ended July 2, 2011, compared with a net loss of $75.8 milion million for the six months ended July 3, 2010. The Company's Senior Secured Note, having an aggregate principal amount of $128.2 million at July 2, 2011, matured on July 17, 2011. On July 17, 2011, the holders of the Senior Notes provided a limited waiver of the Company's obligation to pay these notes in full on their maturity date. Concurrently with the expiration of the limited waiver on Aug. 1, 2011, the Company entered into a Forbearance Agreement with all of the holders of its secured notes pursuant to which the holders agreed to forbear from exercising their remedies relating to payment and other potential defaults through Sept. 30, 2011, subject to certain conditions including the Company's commitment to consummate a refinancing transaction. Possible Bankruptcy "Our current cash reserves are not sufficient to meet our payment obligations under our secured notes at their current maturity dates. We also anticipate that we will be unable to consummate sales of our wireless spectrum assets yielding sufficient proceeds to retire this indebtedness at the current scheduled maturity dates. "If we are unable to extend maturity beyond 2011, or identify and successfully implement alternative financing to repay the Senior Notes and Second Lien Notes, the holders of our secured notes could proceed against the assets pledged to collateralize these obligations. "These conditions raise substantial doubt about our ability to continue as a going concern. Insufficient capital to repay our debt at maturity would significantly restrict our ability to operate and could cause us to seek relief through a filing in the United States Bankruptcy Court." Balance Sheet The Company's balance sheet at July 2, 2011, showed $478.2 million in total assets, $999.6 million in total liabilities, and a stockholders' deficit of $521.4 million. Going Concern Doubt As reported in the TCR on March 23, 2011, Ernst & Young LLP, in San Diego, Calif., expressed substantial doubt about NextWave Wireless's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has incurred recurring operating losses and has a working capital deficiency, primarily comprised of the current portion of long term obligations of $784.6 million at Jan. 1, 2011, that is associated with the maturity of its debt. "The Company currently does not have the ability to repay this debt at maturity." A copy of the Form 10-Q is available at http://is.gd/qucVIk About NextWave Wireless San Diego, Calif.-based NextWave Wireless Inc. (OTC QB: WAVE) -- http://www.nextwave.com/-- is a wireless technology company that manages and maintains worldwide wireless spectrum licenses. NORTEL NETWORKS: Court Requests for Postponement of Mediation ------------------------------------------------------------- The Hon. Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware requests that Jacob A. Esher of Mediation Works Incorporated, as mediator, consider the postponement of the mediation of a dispute involving Robert Horne, James Young, and the Ad Hoc Group of Beneficiaries of the Nortel Networks U.S. Deferred Compensation Plan. The Court recognizes that the resolution of the motions filed by the Nortel Networks, Inc., et al., and the Official Committee of Unsecured Creditors may have material impact upon the mediation. In their motion, the U.S. Movants requested that the Court dismiss the claims of Nortel Networks UK Limited, Nortel Networks Ireland Limited and Nortel Networks S.A. and its French Liquidator (EMEA Debtors). The EMEA Debtors have requested additional time to submit their responses to the motions and the U.S. Movants are amenable to a brief adjournment provided it does not delay the hearing on the motions. The Court also requests that the mediator consider adjourning the submission of briefs, which is set for Sept. 16, until the Court has had the opportunity to hear and decide the motions which the Court has now reschedules to be heard on Oct. 13 and 14, 2011. The Court previously scheduled a hearing for the week of Sept. 19, 2011. About Nortel Networks Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/-- was once North America's largest communications equipment provider. It has sold most of the businesses while in bankruptcy. Nortel Networks Corp., Nortel Networks Inc., and other affiliated corporations in Canada sought insolvency protection under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice (Commercial List). Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. The Monitor sought recognition of the CCAA Proceedings in the U.S. by filing a bankruptcy petition under Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 09-10164). Mary Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's counsel. Nortel Networks Inc. and 14 affiliates filed separate Chapter 11 petitions (Bankr. D. Del. Case No. 09-10138) on Jan. 14, 2009. Judge Kevin Gross presides over the case. James L. Bromley, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, and Christopher M. Samis, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, represent the Official Committee of Unsecured Creditors. Certain of Nortel's European subsidiaries also made consequential filings for creditor protection. On May 28, 2009, at the request of the Administrators, the Commercial Court of Versailles, France ordered the commencement of secondary proceedings in respect of Nortel Networks S.A. On June 8, 2009, Nortel Networks UK Limited filed petitions in this Court for recognition of the English Proceedings as foreign main proceedings under chapter 15 of the Bankruptcy Code. Nortel Networks divested off key assets while in Chapter 11. In March 2009, the U.S. Bankruptcy Court entered an order approving the sale of the Layer 4-7 assets to Radware Ltd. as the successful bidder at auction. In July 2009, Nortel sold its CDMA and LTE-related assets to Telefonaktiebolaget LM Ericsson (Publ). In September 2009, the Court Nortel sold its Enterprise Solutions business to Avaya Inc. In October 2009, the Court approved the sale of assets associated with Nortel's Next Generation Packet Core network components to Hitachi, Ltd. On Dec. 2, 2009, the Court approved the sale of assets associated with Nortel's GSM/GSM-R business to Telefonaktiebolaget LM Ericsson (Publ) and Kapsch Carriercom AG. In December 2009, the Debtors sold their Metro Ethernet Networks business to Ciena Corporation. In March 2010, Nortel sold its Carrier Voice Over IP and Application Solutions business to GENBAND Inc. In September 2010, Nortel sold its Multi-Service Switch business to Ericsson. Nortel Networks filed a proposed plan of liquidation in the U.S. Bankruptcy Court. The Plan generally provides for full payment on secured claims with other distributions going in accordance with the priorities in bankruptcy law. NPX CORP: Owner of 47 Condo Units in Wash. in Chapter 11 -------------------------------------------------------- NPX Corp., a single-asset real estate company, filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 11-br-23065) on Aug. 17 in Las Vegas, where it's based. The Company valued its real estate holdings, comprising 47 condominium units in Renton, Washington, at $12 million. NPX's property is subject to a pending foreclosure suit brought by First Citizens Bank & Trust, it said in court papers. A creditors meeting is scheduled for Sept. 22. NUVILEX INC: Incurs $1.39-Mil. Net Loss in Fiscal 2011 ------------------------------------------------------ Nuvilex, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K, reporting a net loss of $1.39 million on $125,997 of total revenue for the year ended April 30, 2011, compared with a net loss of $5.99 million on $262,932 of total revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $1.24 million in total assets, $3.39 million in total liabilities, $580,000 in preferred stock and a $2.73 million total stockholders' deficit. M&K CPAS, PLLC, in Houston, Texas, 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 from operations. A full-text copy of the Form 10-K is available for free at: http://is.gd/YVyhML About Nuvilex Inc. Scottsdale, Ariz.-based Nuvilex Inc. (OTC BB: NVLX) -- http://www.nuvilex.com/-- operates independently and through wholly-owned subsidiaries and is dedicated to bringing to market scientifically derived products designed to improve the health and well-being of those who use them. The Company currently manufactures, directly or indirectly through independent contractors Cinnergen(TM), Cinnechol(TM), Infinitink(R) (and related private label ink products), and Talysn(TM) Scar Cream for sale worldwide. ONE RENAISSANCE: Wells Fargo, et al. Want Plan Confirmation Denied ------------------------------------------------------------------ Wells Fargo Bank, N.A., asks the U.S. Bankruptcy Court for the Eastern District of North Carolina to deny confirmation of One Renaissance, LLC's Plan of Reorganization, dated June 7, 2011. Wells Fargo, as successor by merger to Wells Fargo Bank Minnesota, N.A., as trustee for the registered holders of Credit Suisse First Boston Mortgage Securities Corp., Commercial Mortgage Pass-Through Certificates, Series 2001-CK1, asserts a claim amounting to $18,421,756, of which $17,300,000 was secured based upon the value of the property, and $1,121,756 was unsecured. Wells Fargo contends that the Plan cannot be confirmed because it does not meet all of the requirements under section 1129(a) of the Bankruptcy Code, noting that: -- While the Plan proposed by the Debtor provides that administrative claims will be paid in full on the Effective Date, it also states that if funds are not available, then the holder of such claims will receive monthly payments until such claims are paid in full; and -- The Debtor did not file any financial projections with its Plan or Disclosure Statement making it impossible to determine whether the Debtor will be able to make the payments under the Plan while at the same time paying the expenses and costs associated with owning, operating, and maintaining the property, including any payments for required tenant or capital improvements to the property. In a separate motion, the Bankruptcy Administrator, also asked the Court to deny confirmation of the Debtor's Plan and allow the Debtor to file an amended plan. According to the Bankruptcy Administrator, the plan is feasible, but might not be confirmable due to the proposed treatment to Wells Fargo. The Bankruptcy Administrator related that in the event that the Debtor had to provide treatment that is most favorable to the creditor, the Debtor could propose a feasible plan, but would have to cut costs. Specifically, the management agreement between the Debtor and its sister entity Dewitt Servicing would have to be renegotiated or the Debtor would need to find a less expensive management company. As reported in the Troubled Company Reporter on June 27, 2011, the Debtor's Plan provides that the Debtor will treat the secured claim of Wells Fargo, N.A., totaling, as of the Petition Date, $17,109,510, as an impaired claim. Wells Fargo will retain its lien over the Debtor's properties until its claim is paid in full. The Debtor will initially make monthly interest-only payments on the claim at the rate of 4.5% per annum for a period of 12 months. Thereafter, the Debtor will make monthly payments of principal and interest based on a 25-year amortization schedule with interest accruing at the fixed rate of 4.5% per annum, with a final payment of all principal and unpaid interest due 84 months from the plan's effective date. Class III includes any credit holding an allowed, secured lien claim pursuant to Chapter 44A of the North Carolina General Statutes. The class is impaired. Holders of claims in Class III will retain their liens pursuant to Section 1129(b)(2)(A)(i)(1) of the Bankruptcy Code until their claims are paid in full and will be treated as fully secured. The Debtor will pay allowed claims in Class III on the later of (a) 60 days from the Effective Date or (b) 10 days from the date the Court resolves any objections to Class III claims. The total of estimated unsecured claims is approximately $83,162. The Debtor will pay all allowed unsecured claims in full. Renaissance Holdings, LLC, which holds a 99.9967% membership interest in the Debtor, and Renaissance Management, Inc., which holds a 0.0033% membership in the Debtor, will retain their ownership interests upon confirmation of the Plan. A full-text copy of the Disclosure Statement, dated June 7, 2011, is available for free at http://ResearchArchives.com/t/s?764d A full-text copy of the Plan, dated June 7, 2011, is available for free at http://bankrupt.com/misc/ONERENAISSANCE_plan.pdf Wells Fargo is represented by: MCGUIREWOODS LLP Robert A. Cox, Jr., Esq. 201 North Tryon Street, Suite 3000 P.O. Box 31247 Charlotte, NC 28231 E-mail: rcox@mcguirewoods.com About One Renaissance, LLC Raleigh, North Carolina-based One Renaissance, LLC, a limited liability company, that owns a commercial building located at 3301 Benson Dr., Raleigh, NC. The Company filed for Chapter 11 bankruptcy protection (Bankr. E.D. N.C. Case No. 11-01793) on March 9, 2011. Jason L. Hendren, Esq., at Hendren & Malone, PLLC, serves as the Debtor's bankruptcy counsel. The Debtor disclosed $27,730,261 in assets and $17,194,510 in liabilities as of the Chapter 11 filing. No creditors committee has been appointed in the Debtor's case. OTERO COUNTY HOSPITAL: Sec. 341 Creditors' Meeting on Sept. 22 -------------------------------------------------------------- The United States Trustee in Albuquerque, New Mexico, will convene a meeting of creditors in the Chapter 11 case of The Otero County Hospital Association, Inc., pursuant to Sec. 341(a) of the Bankruptcy Code on Sept. 22, 2011 at 9:30 a.m. (Mountain Time) at Dennis Chavez Federal Building and United States Courthouse, Creditors Meeting Room, 12th Floor, Room 12411, 500 Gold Ave SW, in Albuquerque. 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 Otero County Hospital Otero County Hospital Association Inc. filed for Chapter 11 protection (Bankr. D. N.M. Case No. 11-13686) in Albuquerque, New Mexico, on Aug. 16, 2011, listing as assets of as much as $500 million and debt of as much as $100 million. The Alamogordo, New Mexico-based nonprofit developed and operates the Gerald Champion Regional Medical Center. GCRMC serves a total population of approximately 70,000 people. Otero County Hospital Association also does business as Mountain View Catering. Judge Robert H. Jacobvitz presides over the case. Craig H. Averch, Esq., at White & Case, LLP, and John D. Wheeler, Esq., at John D. Wheeler & Associates, PC, serve as bankruptcy counsel. Kurtzman Carson Consultants, LLC, serves as claims agent. The petition was signed by William Morgan Hay, chief financial officer. OTERO COUNTY HOSPITAL: Seeks to Pay Alamogordo Surgery Ventures --------------------------------------------------------------- The Otero County Hospital Association, Inc. d/b/a Gerald Champion Regional Medical Center, seeks authority to make postpetition payments on account of prepetition claims of Alamogordo Surgery Ventures, LLC. In 2006, the Debtor and certain physicians established Alamogordo Surgery Ventures pursuant to the terms of an operating agreement dated Nov. 17, 2006. ASV is a New Mexico limited liability company established for the purpose of operating an outpatient surgery center located on the Hospital property. ASV provides outpatient surgical services to members of the greater Otero County community and invoices the patients or insurance provider for the costs of the procedures. The Debtor the pays ASV for the surgeries at a fixed per-procedure cost. The Surgery Center benefits the community by (1) promoting health and wellness; (2) making outpatient surgery services more accessible within the community; (3) providing a facility for the efficient provision of outpatient services; (4) improving the quality of care available to the residents of the community; and (5) expanding healthcare resources within the community. ASV benefits from a policy of the Centers for Medicare & Medicaid Services that, under certain circumstances, permits a joint venture controlled by a sole community healthcare provider to receive heightened Medicare and Medicaid reimbursement rates than would a non-affiliated equivalent facility. Based on the months of May, June, and July of 2011, the Debtor's average monthly payment to ASV for the services it performs is approximately $650,000. ASV's billing cycle to the Hospital is monthly based on full calendar months. Accordingly, on the Petition Date, the Debtor had 15 accrued but unpaid days worth of surgeries performed at ASV for which it is liable pursuant to the terms of its agreement with ASV -- Prepetition ASV Obligations. The Debtor estimates the total value of the Prepetition Obligations to be approximately $325,000. In addition to using ASV's surgical services for the benefit of the community, the Debtor also holds a 40.5% equity stake in ASV, a 51% voting interest, and is the landlord under ASV's lease for the Surgery Center dated Nov. 17, 2006. As an equity member, the Debtor is periodically entitled to distributions from ASV -- Equity Distributions. The distributions are made monthly and typically amount to approximately $80,000 per month. As ASV's landlord, the Debtor is entitled to monthly lease payments for base rent and additional rent for pro rata utilities and other miscellaneous items. The monthly base rent paid by ASV to the Debtor for the use of the Surgery Center is approximately $38,000 per month. The 59.5% of ASV's equity interests not held by the Debtor are held predominantly by Physician Members that also perform surgical procedures at the Surgery Center. The Debtor believes that the Physician Members may elect to perform fewer procedures at the Surgery Center if the Debtor fails to perform all of its obligations to ASV in the ordinary course, and possibly consider options to create a new surgery group elsewhere. The Debtor further believes that its substantial goodwill with the Physician members would be irreparably harmed if it failed to perform all of its obligations to ASV in the ordinary course. Meanwhile, the Debtor has won Court authority to pay (i) medical providers and honor agreements, (ii) patient overpayments to patients and turn over certain third-party payor funds, (iii) trust fund taxes in the ordinary course of business, (iv) insurance premium financing programs and maintain insurance programs, (v) account of prepetition claims of Medicare and Medicaid and permit deductions for overpayments in the ordinary course of business, and (vi) prepetition wages, compensation and employee benefits. About Otero County Hospital Otero County Hospital Association Inc. filed for Chapter 11 protection (Bankr. D. N.M. Case No. 11-13686) in Albuquerque, New Mexico, on Aug. 16, 2011, listing as assets of as much as $500 million and debt of as much as $100 million. The Alamogordo, New Mexico-based nonprofit developed and operates the Gerald Champion Regional Medical Center. GCRMC serves a total population of approximately 70,000 people. Otero County Hospital Association also does business as Mountain View Catering. Judge Robert H. Jacobvitz presides over the case. Craig H. Averch, Esq., at White & Case, LLP, and John D. Wheeler, Esq., at John D. Wheeler & Associates, PC, serve as bankruptcy counsel. Kurtzman Carson Consultants, LLC, serves as claims agent. The petition was signed by William Morgan Hay, chief financial officer. OTERO COUNTY HOSPITAL: To Assume Hospital Facility Lease -------------------------------------------------------- Otero County Hospital Association Inc. seeks entry of an order (i) authorizing the assumption of its lease agreement with the city of Alamogordo, New Mexico, pursuant to section 365(a) of the Bankruptcy Code; and (ii) establishing cure amount. The agreement provides for the lease of the land and hospital facilities from the City to Gerald Champion Regional Medical Center. Absent the Lease Agreement, Otero County would no longer have a Level III trauma center or an acute-care facility to provide health care and services to the approximately 70,000 people in the community. The Debtor said residents would be forced to travel over 75 miles to the next closest comparable facility. "GCRMC does not consider this an option. Thus, not only is it in the best interest of the estate to assume the Lease Agreement, but it is in the best interest of the community and residents of Otero County," the Debtor said in court papers. For its current capital/debt structure prior to the Petition Date, GCRMC required capital to, among other things, (i) finance and reimburse the costs of constructing and implementing improvements to GCRMC and; (ii) refinance existing debt obligations relating primarily to the construction of the Hospital in 1999. To provide GCRMC the capital necessary to fund construction in 2007 and to refinance preexisting debt, the city of Alamogordo issued (i) $30,465,000 in aggregate principal amount of its Hospital Improvement and Refunding Revenue Bonds (Gerald Champion Regional Medical Center Project) Series 2007A; and (ii) $8,020,000 in aggregate principal amount of its Taxable Hospital Improvement and Refunding Revenue Bonds (Gerald Champion Regional Medical Center Project) Series 2007B pursuant to New Mexico law. The Bonds are governed by the terms of a trust indenture entered into by the City and The Bank of New York Mellon Trust Company, N.A., as trustee on Nov. 15, 2007. To establish an income stream to support payments under the Bonds, the City and the Debtor entered into the Lease Agreement dated Nov. 1, 2007, whereby the City leased the Hospital and certain related assets to GCRMC in exchange for lease payments. Pursuant to the terms of the Lease Agreement, the Debtor is obligated to keep in place at all times a letter of credit for the benefit of bondholders in an amount not less than the sum of all remaining obligations under the Bonds. To secure the payments under the Bonds, and in accordance with the terms of the Lease Agreement, the Debtor and Bank of America, N.A., entered into a Letter of Credit and Reimbursement Agreement, whereby the Bank issued an irrevocable letter of credit in the amount of $38,927,842 in favor of BoNY as Trustee. The Letter of Credit can be drawn by the Trustee under certain circumstances. Under the Reimbursement Agreement, the Debtor must reimburse the Bank for any draws on the Letter of Credit. The Debtor's obligations under the Reimbursement Agreement are secured by a Mortgage and Assignment of Rents and Leases, Security Agreement and Financing Statement, recorded on Nov. 15, 2007, granting a mortgage on the Hospital and associated real property and a first priority security interest in certain personal property used in connection with the Hospital. The Letter of Credit is drawn periodically to make all necessary debt service payments on the Bonds. As the Letter of Credit is drawn, the payments pursuant to the Lease Agreement are directed to the Bank to cover the draws. The Letter of Credit expires on Nov. 15, 2012. The liabilities owed under the bonds would be, in effect, accelerated if the Letter of Credit cannot be extended or replaced. The Debtor intends to secure either (i) an extension to the Letter of Credit, or (ii) a replacement letter of credit by Oct. 1, 2012. If it fails to do so, the Trustee is obligated to tender the Bonds for Redemption on Nov. 10, 2012. About Otero County Hospital Otero County Hospital Association Inc. filed for Chapter 11 protection (Bankr. D. N.M. Case No. 11-13686) in Albuquerque, New Mexico, on Aug. 16, 2011, listing as assets of as much as $500 million and debt of as much as $100 million. The Alamogordo, New Mexico-based nonprofit developed and operates the Gerald Champion Regional Medical Center. GCRMC serves a total population of approximately 70,000 people. Otero County Hospital Association also does business as Mountain View Catering. Judge Robert H. Jacobvitz presides over the case. Craig H. Averch, Esq., at White & Case, LLP, and John D. Wheeler, Esq., at John D. Wheeler & Associates, PC, serve as bankruptcy counsel. Kurtzman Carson Consultants, LLC, serves as claims agent. The petition was signed by William Morgan Hay, chief financial officer. OTTILIO PROPERTIES: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: Ottilio Properties, LLC 555 Preakness Avenue Totowa, NJ 07512 Bankruptcy Case No.: 11-34641 Chapter 11 Petition Date: August 18, 2011 Court: U.S. Bankruptcy Court District of New Jersey (Newark) Judge: Morris Stern Debtor's Counsel: Glenn R. Reiser, Esq. LOFARO AND REISER, LLP 55 Hudson Street Hackensack, NJ 07601 Tel: (201) 498-0400 Fax: (201) 498-0016 E-mail: greiser@new-jerseylawyers.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Anthony V. Ottilio, managing member. PACE UNIVERSITY: Moody's Affirms Ba1 Debt Rating; Outlook Stable ---------------------------------------------------------------- Moody's Investors Service has affirmed its Ba1 rating on Pace University's Series 2005A and 2005B Revenue Bonds issued by the Dormitory Authority of the State of New York. The rating outlook has been revised to stable from negative. SUMMARY RATING RATIONALE The Ba1 rating reflects Pace University's large scale with $279 million Moody's adjusted operating revenue base in FY 2010, uneven enrollment history, thin liquidity and reliance on a drawdown note program for seasonal cash flow, and limited financial resource base. The move to a stable outlook reflects expected continuation of momentum in management's effort to improve cash flow performance, student revenue growth and ongoing increases in liquid resources. CHALLENGES *Limited liquidity relative to expense base with FY 2010 monthly liquidity of $16 million covering a very thin 22 days of cash expenses. Pace continues to rely on a Bank of America drawdown note facility on which it had $34 million outstanding as of June 30, 2010 and June 30, 2011. Unrestricted liquidity without the operating funds from the note would be negative, although reliance on the note has been gradually reducing over time, a trend with decent prospects to continue and during FY 2011 Pace had nothing drawn on the line for 12 weeks. *Very thin financial resource cushion relative to debt and operations. Even when adjusted for a large post-retirement health benefit liability ($74.7 million as of June 30, 2010) expendable financial resources were negative $25 million at the end of FY 2010. Total financial resources of $48 million cushion pro forma debt of $147 million by 0.33 times, well below Moody's median of 0.89 times for large Baa-rated private universities. *Limited pricing power especially for undergraduate students (70% of full-time equivalent enrollment) relative to peers with net tuition per student declining 4.6% in FY 2010 to $20,096 as prospective students are likely to remain sensitive to net price increases. Pace faces a significant amount of competition from other private as well as public universities in New York and the northeast. *Sizeable and growing operating lease commitments with indirect debt of $148 million as of FYE 2010. Of operating lease rental expense of $22 million, $13.3 million was related to student housing facilities which generate auxiliary revenue. *Limited revenue diversity with student charges comprising 88.7% of Moody's adjusted operating revenues in FY 2010. Gifts (2% of operating revenue) have been declining since 2006 following the University's completion of a comprehensive campaign. Further diversification of operating revenue would be a credit positive. *Almost entirely variable rate debt structure dominated by the Series 2005 auction rate bonds. While management reports successful auctions and a weighted average rate of 4.5% during FY 2011 (blend of taxable and tax-exempt debt) Pace remains exposed to interest spikes or failed auctions, with a maximum interest rate of 15% and 20% allowable on the bonds Series 2005A and Series 2005B bonds, respectively. A fixed payer swap with a notional amount $72 million does help manage a portion of the interest rate risk. STRENGTHS *As a large comprehensive urban university ($279 million of Moody's adjusted operating revenue in FY 2010) Pace offers a diverse array of undergraduate, graduate, and professional programs, including schools of nursing, business, and law. In fall 2010, the University enrolled 10,338 full-time equivalent (FTE) students, up 5% from the recent low in fall 2007 when various enrollment management missteps drove a decline in enrollment. In order to maintain a stable enrollment base with increasing student quality, Pace is focused on several recruitment and retention initiatives, including attracting community college transfers, increased recruitment of international students, targeting recruiting in US markets with favorable demographics, and growth in high demand programs such as those in the performing arts. *Management commitment to improved operating performance and building liquidity. Pace's operating cash flow margin of 7.2% in FY 2010 supported debt service coverage 1.7 times as the "stability plan" continued careful expense controls. *Improved oversight of enrollment management with careful tracking of student demand, net revenue targets and financial aid packaging. DETAILED CREDIT DISCUSSION LEGAL SECURITY: Loan payments are a general obligation of the University secured by a security interest in Pledged Revenues (including tuition and fees) equal to maximum annual debt service. The University's obligations to the Authority under the Loan Agreement are additionally secured by a mortgage on certain property, which is not initially pledged to bondholders unless an event of default occurs and the bond insurer requests that the Authority assign the mortgage to the Trustee. The Series 2005 debt service reserve fund requirement was initially met with a surety bond issued by MBIA. Pace was notified by the Trustee in July 2008 that it was required to deposit collateral with the Trustee in the amount of $2.769 million, replacing the Surety Bond over a five year period as a result of the downgrade of MBIA. The Series 2005 loan agreements include two financial covenants. The University must maintain Unrestricted Investments divided by Outstanding Indebtedness of at least 30%. Management projects passing with a 41.06% ratio based on unaudited FYE 2011 data. The University must also maintain debt service at below 6% of annual Unrestricted Gross Revenues. Management projects passing with a 4.17% ratio based on unaudited FYE 2011 data. DEBT-RELATED DERIVATIVES: Pace has entered into a floating to fixed interest rate swap agreement to hedge the interest rate on its Series 2005A bonds (current outstanding notional amount of swap is $71.9 million as of August, 11 2011). As of that same date, the market valuation of the swap was negative $10.0 million to Pace. In December 2009, Pace restructured the swap with the counterparty Merrill Lynch Capital Services (with an unconditional guarantee provided by Merrill Lynch & Co.). Pursuant to a reinsurance agreement between MBIA Insurance Corp and National Public Finance Guarantee Corp, National reinsures the swap policy. Prior to the restructuring Pace could have been required to post collateral equal to the negative market valuation of the swap. Post restructuring, Pace is not required to post collateral with its Ba1 rating level unless the market valuation of the swap exceeds negative $10 million (new threshold). If the value of the swap exceeds $10 million, Pace is required to post the amount in excess of $10 million, subject to a $100,000 minimum posting amount. RECENT DEVELOPMENTS Based on unaudited management-reported results for FY 2011, the University had healthy revenue growth, up 11% for the year with net tuition revenue up over 13%. The sharp increase was aided by increases in both new and returning students with a higher portion of students with less tuition discounting. The strong revenue allowed Pace to offer an early retirement incentive package that should yield long term financial benefits. Based on preliminary data, new undergraduate student applications were up 9% for the university, admitted students up 4%, which students who had made deposits as of August 16, 2011 were down 5% from a similar point in the 2010 cycle. Management reports an increase in median SAT scores of accepted students for both the Pleasantville and New York City campuses. While the University had the same amount outstanding on its operating notes at the end of FY 2010 and 2011 ($34 million), it did reduce long-term debt by just over $9 million including paying down the remaining principal amounts outstanding on the Series 1997 and 2000 fixed-rate bonds. Pace utilizes the services of the Commonfund to manage its primary long term pool. Based on unaudited data, investments grew 20% in FY 2011 including the impact of endowment spending. As of July 31 2011, the primary pool was comprised of domestic equity (43%), fixed income (20%), international equity (18%), marketable alternatives (11%), and private capital/private equity (8%). Outlook Moody's stable outlook reflects expectation of successful enrollment management efforts yielding increasing net tuition revenue, careful management of expenses and gradual increases in liquid resources and reduced reliance on the operating notes. WHAT COULD MAKE THE RATING GO UP Significant growth of unrestricted liquidity coupled with further strengthening of operating performance and student market position. WHAT COULD MAKE THE RATING GO DOWN Deterioration of unrestricted liquidity; sustained deterioration in operating performance including declining net tuition revenue; additional debt absent growth of revenue available to pay debt service KEY INDICATORS (Fall 2010 enrollment data and FY 2010 audited financial data): Total Full-Time Equivalent (FTE) Students: 10,338 FTE Freshmen Selectivity: 77.4% Freshmen Matriculation: 21.9% Total Financial Resources: -$26 million (includes impact of $75 million OPEB liability) Cash and Investments (excluding debt service reserve funds): $127.9 million Direct Debt: $156.5 million (pro forma direct debt of $147.5 million) Comprehensive Debt: $304.9 million Expendable Financial Resources-to-Debt: -0.6 times Adjusted Expendable Financial Resources-to-Debt (excluding $75 million post-retirement health benefit liability): -0.2 times Monthly Liquidity (unrestricted cash and investments as of June 30, 2010 which could be liquidated in one month): $15.9 million Monthly Days Cash (unrestricted funds available within 1 month divided by operating expenses excluding depreciation, divided by 365 days): 22 days Three-Year Average Operating Margin: 0.1% Three-Year Average Debt Service Coverage: 1.7 times Reliance on Student Charges: 89% RATED DEBT 2005A and 2005B bonds: Ba1 underlying rating, insured by National Public Finance Guarantee Corporation (National's current financial strength rating is Baa1 with a developing outlook) CONTACTS: Pace University: Toby Winer, Senior Vice President for Finance and Treasurer, 914-923-2883 Moody's adopts all necessary measures so that the information it uses in assigning a rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process. The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on Moody's website www.moodys.com for further information. PAYMENT DATA: Incurs $238,000 Net Loss in Second Quarter -------------------------------------------------------- Payment Data Systems, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $238,481 on $768,359 of revenue for the three months ended June 30, 2011, compared with a net loss of $55,174 on $604,184 of revenue for the same period during the prior year. The Company also reported a net loss of $382,498 on $1.55 million of revenue for the six months ended June 30, 2011, compared with a net loss of $195,228 on $1.20 million of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $1.27 million in total assets, $1.58 million in total liabilities, all current, and a $307,423 total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/X91Nv3 About Payment Data Systems San Antonio, Tex.-based Payment Data Systems, Inc. provides integrated electronic payment processing services to merchants and businesses, including credit and debit card-based processing services and transaction processing via the Automated Clearinghouse Network. The Company also operates an online payment processing service for consumers under the domain name http://www.billx.com/through which consumers can pay anyone. The Company reported a net loss of $464,168 on $2.62 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $803,526 on $3.22 million of revenue during the prior year. As reported by the TCR on April 25, 2011, Akin, Doherty, Klein & Feuge, P.C., San Antonio, Texas, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company has incurred substantial losses since inception, which has led to a deficit in working capital. PENINSULA HOSPITAL: Meets With Investors to Keep Hospital Open -------------------------------------------------------------- Crain's New York Business reported yesterday that the Board of Trustees at Peninsula Hospital Center met with potential investors in an attempt to keep the Queens hospital open. The Peninsula Hospital also conveyed plans to file for Chapter 11 bankruptcy protection Tuesday, Aug. 23. According to the report, the trustees are trying to raise millions of dollars from one of two different physician-led groups. Both groups visited the hospital on Friday, but a formal proposal was due to the state Department of Health that day. By Friday morning, a proposal wasn't ready, and it wasn't clear whether DOH would grant an extension. Mr. Mure did not rule out that the state could order Peninsula to start implementing a closure plan on Aug. 19. The hospital does have enough cash on hand to meet this week's payroll. He identified one group as a New Jersey physician backed by investors with past experience in acquiring and turning around distressed hospitals. The other group includes Peninsula staff physicians. The report says the trustees cannot act independently of MediSys Health Network until after the close of business today, when MediSys officially terminates its role as corporate sponsor of Peninsula. Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an involuntary Chapter 11 bankruptcy protection against Peninsula Hospital Center in the U.S. Bankruptcy Court for the Eastern District of New York (Case No. 11-47056) on Aug. 16, 2011. Judge Elizabeth S. Stong presides over the case. Marilyn Cowhey Macron, Esq., Macron & Cowhey, represents the petitioners. PENINSULA HOSPITAL: Summoned to Answer Involuntary Bankruptcy ------------------------------------------------------------- Peninsula Hospital Center has been summoned to appear before the Bankruptcy Court to address an involuntary Chapter 11 petition filed against it. Peninsula Hospital Center -- http://www.peninsulahospital.org/-- operated a 200-bed hospital in Far Rockaway, Queens, in New York. In July 2011, Peninsula Hospital announced plans to close. Three creditors, owed roughly $127,000 in the aggregate, filed an involuntary Chapter 11 petition (Bankr. E.D.N.Y. Case No. 11- 47056) against Peninsula Hospital Center on Aug. 16, 2011. Judge Elizabeth S. Stong presides over the case. The petitioning creditors are Wayne S. Dodakian, Vinod Sinha of Total MedBiz, and Shannon Gerardi of Advanced Seamless Gutters. Meanwhile, Marilyn Cowhey Macron, who represents the petitioning creditors, advised the Bankruptcy Court of its current address, noting that the address indicated in the petition was the old location. The firm may be reached at: Marilyn Cowhey Macron, Esq. MACRON & COWHEY, PC 160 Broadway, 4th Floor New York, NY 10038 Tel: 212-346-9060 E-mail: marilyn@macroncowhey.com PERKINS & MARIE: Disclosure Statement Hearing Moved to Sept. 8 -------------------------------------------------------------- Lance Duroni at Bankruptcy Law360 reports that Perkins & Marie Callender's Inc. extended its deadline for confirming its reorganization plan by two weeks on Monday, telling a Delaware bankruptcy judge it was making headway in negotiations with unsecured creditors. According to Law360, the court had been scheduled to consider the disclosure statement attached to Perkins' Chapter 11 plan, but that hearing was pushed back to Sept. 8 to allow for discussions among the debtor, the official committee of unsecured creditors and bondholders backing the plan. The Company expects to emerge from its financial restructuring in a significantly strengthened financial position. Pursuant to the proposed Plan, the Company's secured noteholders will receive new secured term loans. The proposed Plan also contemplates that the Company's unsecured noteholders will receive equity in the reorganized Company, and the Company's general unsecured creditors will be entitled to elect to receive either cash or equity in the reorganized Company. In addition, the Plan provides that the Company will obtain exit financing in an amount of up to $35 million to finance its operations after the Company exits Chapter 11, which will replace the Company's current $21 million Debtor-in-Possession credit facility. During its restructuring, the Company will continue the process of reviewing its leases and business contracts and identifying underperforming restaurant locations through store level analyses of historical performance, local market conditions and cost structure. About Perkins & Marie Callender's Based in Memphis, Tennessee, Perkins & Marie Callender's Inc., fka The Restaurant Company, is the owner or franchiser of nearly 600 family-dining restaurants, the Perkins Restaurants and Marie Callender's. Perkins & Marie and several affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 11-11795) on June 13, 2011. Perkins & Marie disclosed $290 million in assets and $441 million in debt as of the Chapter 11 filing. Judge Kevin Gross presides over the case. Robert S. Brady, Esq., and Robert F. Poppiti, Jr., Esq., at Young, Conaway, Stargatt & Taylor, LLP; and Mitchel H. Perkiel, Esq., Hollace T. Cohen, Esq., and Brett D. Goodman, Esq., at Troutman Sanders, LLP, serve as bankruptcy counsel. The Debtors' financial advisors are Whitby, Santarlasci & Company. Their claims agent is Omni Management Group, LLC. Deloitte Tax LLPserves as tax services provider. DIP lender Wells Fargo is represented by lawyers at Paul, Hastings, Janofsky & Walker LLP. Roberta A. Deangelis, U.S. Trustee for Region 3, appointed seven unsecured creditors to serve on the Official Committee of Unsecured Creditors in the Debtors' cases. Ropes & Gray LLP represents the Committee. PETTERS GROUP: Polaroid Global Settlement Upheld on Appeal ---------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the global settlement for the companies that made up the Ponzi scheme orchestrated by Thomas Petters was upheld on appeal by the Bankruptcy Appellate Panel for the 8th Circuit in St. Louis. The settlement was challenged by only on creditor, Interlachen Harriet Investments Ltd., the holder of a $60 million claim. According to the report, Interlachen had the misfortune of being one of the last investors before Petters' fraud was unearthed in October 2008. The Petters Ponzi scheme was the country's largest until the Bernard Madoff scam surfaced about two months later. The settlement included the Petters companies along with the trustee for Polaroid Corp., a $426 million acquisition that Petters completed in 2005 using stolen money. The settlement also wrapped up claims by and against Asset Based Resource Group LLC, which invested a total of $2.7 billion in the Petters scam and ended up asserting a $312 million claim after deducting amounts it took out before the fraud became known. The report relates that in settlement, Polaroid paid Asset Based Resource $11.5 million to release a $291 million secured claim. Polaroid will pay the Petters companies $3 million to settle a $3.9 million preference claim against ABRG. Asset Based Resource's claims against the Petters companies was reduced from $312 million to $141.3 million, unsecured. ABRG exchanged releases with Polaroid and the Petters companies. About Petters Group Based in Minnetonka, Minn., Petters Group Worldwide LLC is a collection of some 20 companies, most of which make and market consumer products. It also works with existing brands through licensing agreements to further extend those brands into new product lines and markets. Holdings include Fingerhut (consumer products via its catalog and Web site), SoniqCast (maker of portable, WiFi MP3 devices), leading instant film and camera company Polaroid (purchased for $426 million in 2005), Sun Country Airlines (acquired in 2006), and Enable Holdings (online marketplace and auction for consumers and manufacturers' overstock inventory). Founder and chairman Tom Petters formed the company in 1988. Petters Company, Inc., is the financing and capital-raising unit of Petters Group Worldwide. Thomas Petters, the founder and former CEO of Petters Group, has been indicted and a criminal proceeding against him is proceeding in the U.S. District Court for the District of Minnesota. Petters Company, Petters Group Worldwide and eight other affiliates filed separate petitions for Chapter 11 protection (Bankr. D. Minn. Lead Case No. 08-45257) on Oct. 11, 2008. James A. Lodoen, Esq., at Lindquist & Vennum P.L.L.P., represents the Debtors as counsel. In its petition, Petters Company estimated its debts at $500 million and $1 billion. Parent Petters Group Worldwide estimated its debts at not more than $50,000. Petters Aviation, LLC, and affiliates MN Airlines, LLC, doing business as Sun Country Airlines, Inc., and MN Airline Holdings, Inc., filed separate petitions for Chapter 11 bankruptcy protection (Bankr. D. Minn. Case Nos. 08-45136, 08-35197 and 08-35198) on Oct. 6, 2008. Petters Aviation is a wholly owned unit of Thomas Petters Inc. and owner of MN Airline Holdings, Sun Country's parent company. PHILADEPHIA ORCHESTRA: Musicians Spurn Management's Plan -------------------------------------------------------- Peter Dobrin at Inquirer Music Critic reports that, in a stunning rebuke to the official leadership of the Philadelphia Orchestra, musicians have rejected a strategic plan prepared by president Allison B. Vulgamore and management leaders. According to the report, players "formally reject its recommendations," states a letter to Vulgamore and Philadelphia Orchestra Association board chairman Richard B. Worley. "The document and its suggestions have serious flaws, and we do not believe it will do what a strategic plan is supposed to do: create a plan for the future that protects the music we create and builds on our legacy as one of the world's greatest orchestras." The report says the May 19 strategic plan detailed troubling trends in ticket sales and philanthropy, and outlined ideas to re-engage audiences and donors. The artistic budget would be limited, and international touring curtailed except to the extent that it could be funded. Although the language was vague, the plan proposed expanding the orchestra's repertoire into more populist realms, and suggested repackaging ideas such as dressing the musicians in more informal attire and holding social events in connection with concerts. Many of these ideas have been proposed or tried here before. About the Philadelphia Orchestra The Philadelphia Orchestra -- http://www.philorch.org/-- claims to be among the world's leading orchestras. Bloomberg News says the orchestra became the first major U.S. symphony to file for bankruptcy protection, surprising the music world. Previous conductors include Fritz Scheel (1900-07), Carl Pohlig (1907-12), Leopold Stokowski (1912-41), Eugene Ormandy (1936-80), Riccardo Muti (1980-92), Wolfgang Sawallisch (1993-2003), and Christoph Eschenbach (2003-08). Charles Dutoit is currently chief conductor, and Yannick Nezet-Seguin has assumed the title of music director designate until he takes up the baton as The Philadelphia Orchestra's next music director in 2012. The Philadelphia Orchestra Association, The Academy of Music of Philadelphia, Inc., and Encore Series, Inc., filed separate Chapter 11 petitions (Bankr. E.D. Pa. Case Nos. 11-13098 to 11-13100) on April 16, 2011. Judge Eric L. Frank presides over the case. The Philadelphia Orchestra Association is being advised by Dilworth Paxson LLP, its legal counsel, and Alvarez & Marsal, its financial advisor. Curley, Hessinger & Johnsrud serves as its special counsel. In its petition, Philadelphia Orchestra estimated $10 million to $50 million in assets and debts. Encore Series, Inc., tapped EisnerAmper LLP as accountants and financial advisors. Roberta A. DeAngelis, the U.S. Trustee for Region 3, appointed seven members to the official committee of unsecured creditors in the Debtors' case. Reed Smith LLP serves as the Committee's counsel. The orchestra at the start of the Chapter 11 case said it needed relief from pension obligations, a new lease with the Kimmel Center where it performs, and a new union contract with musicians. PONIARD PHARMACEUTICALS: Incurs $3.9-Mil. 2nd Quarter Net Loss -------------------------------------------------------------- Poniard Pharmaceuticals, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $3.9 million for the three months ended June 30, 2011, compared with a net loss of $6.6 million for the same period last year. To date, the Company has not received any revenues from sales of picoplatin. The Company reported a net loss of $7.1 million for the six months ended June 30, 2011, compared with a net loss of $19.1 million for the same period last year. The Company's balance sheet at June 30, 2011, showed $10.0 million in total assets, $3.7 million in total liabilities, and stockholders' equity of $6.3 million. As reported in the TCR on April 6, 2011, Ernst & Young LLP, in Palo Alto, Calif., expressed substantial doubt about Poniard Pharmaceuticals' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has incurred recurring operating losses and negative cash flows from operations. A copy of the Form 10-Q is available at http://is.gd/7fL70x San Francisco, Calif.-based Poniard Pharmaceuticals, Inc. (Nasdaq: PARD) -- http://www.poniard.com/-- is a biopharmaceutical company focused on the development and commercialization of innovative oncology products. The Company's lead product candidate is picoplatin, a chemotherapeutic designed to treat solid tumors that are resistant to existing platinum-based cancer therapies. POSITRON CORP: Incurs $2.8 Million Net Loss in Second Quarter ------------------------------------------------------------- Positron Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $2.83 million on $3.02 million of revenue for the three months ended June 30, 2011, compared with a net loss of $6.39 million on $934,000 of revenue for the same period during the prior year. The Company also reported a net loss of $3.57 million on $5.89 million of revenue for the six months ended June 30, 2011, compared with a net loss of $9.65 million on $1.40 million of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $3.41 million in total assets, $4.33 million in total liabilities, and a $916,000 total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/xPlnKa About Positron Corporation Headquartered in Fishers, Indiana, Positron Corporation is a molecular imaging company focused on nuclear cardiology. The Company reported a net loss of $10.92 million on $4.62 million of sales for the year ended Dec. 31, 2010, compared with a net loss of $5.75 million on $1.44 million of sales during the prior year. As reported by the TCR on April 6, 2011, Sassetti LLC, in Oak Park, Illinois, noted that the Company has a significant accumulated deficit which raises substantial doubt about its ability to continue as a going concern. POWER EFFICIENCY: Incurs $980,000 Net Loss in Second Quarter ------------------------------------------------------------ Power Efficiency Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $980,107 on $112,165 of revenue for the three months ended June 30, 2011, compared with a net loss of $1.43 million on $125,575 of revenue for the same period a year ago. The Company also reported a net loss of $1.85 million on $270,771 of revenue for the six months ended June 30, 2011, compared with a net loss of $1.71 million on $235,605 of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $3.41 million in total assets, $1.22 million in total liabilities, and $2.19 million total stockholders' equity. As reported in the TCR on April 6, 2011, BDO USA, LLP, in Las Vegas, Nevada, expressed substantial doubt about Power Efficiency's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered recurring losses and has generated negative cash flows from operations. Continuation of the Company as a going concern is dependent upon achieving profitable operations or accessing sufficient operating capital. Management's plans to achieve profitability include developing new products, obtaining new customers and increasing sales to existing customers. Management is seeking to raise additional capital through equity issuance, debt financing or other types of financing. However, there are no assurances that sufficient capital will be raised. If the Company is unable to obtain it on reasonable terms, it would be forced to restructure, file for bankruptcy or significantly curtail operations. A full-text copy of the Form 10-Q is available for free at: http://is.gd/ztkhFP About Power Efficiency Las Vegas, Nevada-based Power Efficiency Corporation (OTC: PEFF) - - http://www.powerefficiency.com/-- is a clean technology company focused on efficiency technologies for electric motors. PROFESSIONAL VETERINARY: Parties Defer Plan Outline Hearing ----------------------------------------------------------- The Hon. Timothy J. Mahoney of the U.S. Bankruptcy Court for the District of Nebraska deferred the hearing to consider adequacy of the disclosure statement explaining Professional Veterinary Products, Ltd.'s proposed Chapter 11 Plan. The hearing was originally set for Aug. 15, 2011, and will be continued until the parties request further hearing. At the hearing, the Court will also consider the objections filed by creditors Direct Vet Marketing, Inc., and Agri-Laboratories. The Plan As reported in the Troubled Company Reporter on Dec. 29, 2010, the Debtors and the Official Committee of Unsecured Creditors submitted a proposed Plan of Liquidation and an explanatory Disclosure Statement. According to the Disclosure Statement, the Plan will facilitate the final liquidation of the Debtors' estates and the distribution of the proceeds obtained therefrom to holders of allowed claims. Upon the Effective Date, any and all remaining assets of the Debtors and their estates, including (a) all Unencumbered assets and (b) all cash, will be transferred to, and vest in, the Liquidating Trust, subject to any lien that is not waived, released or discharged on the Effective Date of the Plan; all assets will constitute the Trust Estate, subject to those liens. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/PROFESSIONALVETERINARY_DS.pdf About Professional Veterinary Products Professional Veterinary Products Ltd. -- http://www.pvpl.com/-- operates a veterinary supply company owned and managed by veterinarians. Professional Veterinary sought Chapter 11 protection from creditors on August 20, 2010, in Omaha, Nebraska (Bankr. D. Neb. Case No. 10-82436). Affiliates ProConn and Exact Logistics also filed for Chapter 11. The Company reported $89.79 million in total assets, $78.23 million in total liabilities, and $11.56 million in stockholders' equity at April 30, 2010. The Company hired McGrath North Mullin & Kratz PC LLC, as bankruptcy counsel and Alliance Management as financial and restructuring advisors. RADIANT OIL: Incurs $507,000 Net Loss in Second Quarter ------------------------------------------------------- Radiant Oil & Gas, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $507,009 on $58,178 of oil and gas sales for the three months ended June 30, 2011, compared with a net loss of $467,949 on $48,905 of oil and gas sales for the same period a year ago. The Company also reported a net loss of $1.93 million on $109,568 of oil and gas sales for the six months ended June 30, 2011, compared with a net loss of $671,478 on $93,759 of oil and gas sales for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $3.26 million in total assets, $7.95 million in total liabilities, and a $4.69 million total Radiant oil & gas stockholders' deficit. The Company was unable to file its quarterly report on Form 10-Q for the period ended June 30, 2011, within the prescribed time period due to its difficulty in completing and obtaining required financial and other information without unreasonable effort and expense. A full-text copy of the Form 10-Q is available for free at: http://is.gd/zvdiLq About Radiant Oil & Gas Houston, Tex.-based Radiant Oil & Gas, Inc., seeks to develop, produce, and acquire oil and natural gas properties along the Gulf Coasts of Texas and Louisiana and on the Outer Continental Shelf of the United States. The Company reported a net loss of $2.97 million on $169,649 of oil and gas revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.27 million on $106,502 of oil and gas revenue during the prior year. As reported by the TCR on April 25, 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 has recurring losses from operations and has a working capital deficit. RAINBOW 215: Court Confirms Chapter 11 Plan of Reorganization ------------------------------------------------------------- The Hon. Bruce A. Markell of the U.S. Bankruptcy Court for the District of Nevada confirmed the amended Chapter 11 plan of reorganization of Rainbow 215 LLC. The Court finds that Rainbow 215 has met by a preponderance of the evidence the applicable requirements for confirmation under Section 1129(a). In its proposed plan for reorganization, Rainbow 215 identifies five classes: -- Class 1 consists of City National's claim in the principal amount of $9,665,915; -- Class 2 consists of Vestin's claim in the principal amount of $750,000; -- Class 3 consists of Rainbow 6 215's six unsecured creditors who hold claims in the aggregate amount of $198,766; -- Class 4 consists of Rainbow 215's five self-identified insiders who hold claims in the aggregate amount of $675,927; and -- Class 5 consists of Rainbow 215's two equity shareholders. The preceding five classes are all impaired under the Plan. In its Plan, Rainbow 215 proposes to pay the entirety of City National's secured claim in a balloon payment on or before December 31, 2015. In the meantime, Rainbow 215 proposes to make monthly interest payments to City National at a 4% interest rate based on a principal amount of $9,665,914.78. The Plan proposes similar treatment with respect to Vestin; that is, it will pay Vestin's claim in full on or before December 31, 2005. In the meantime, Rainbow 215 will make monthly interest payments to Vestin at a 10% interest rate, which represents a negotiated rate. Under the Plan, both City National and Vestin will retain their liens against the Property. Therefore, upon default of the Plan, either or both parties may seek appropriate remedies against Rainbow 215, including foreclosure of the Property. The Plan also provides for payment in full to all members of Class 3, without interest, on or before five years from the effective date of plan confirmation. Alternatively, the Plan provides an option to this class; instead of receiving a balloon payment at the end of the fifth year, a member of Class 3 with a claim under $30,000 may elect to receive a one-time lump sum payment equal to 75% of its claim, which it would receive within ninety days from the effective date of plan confirmation. Rainbow 215, however, retains the right to unilaterally rescind an unsecured creditor's exercise of this option, and instead pay the unsecured creditor pursuant to its primary proposed scheme for Class 3 creditors. Class 4 and 5 claims are subordinated to Class 3 claims; the Plan proposes distribution only if and when all payments to Class 3 are made pursuant to the Plan. However, the Plan does not actually propose any type of distribution to Class 5, merely proposing that its equity holders will retain their ownership interests in Rainbow 215. Las Vegas, Nevada-based Rainbow 215, LLC, filed for Chapter 11 (Bankr. D. Nev. Case No. 09-23414) on July 27, 2009. David Mincin, Esq., at Law Offices of Richard Mcknight, P.C., represents the Debtor in its restructuring effort. The Debtor did not file a list of its 20 largest unsecured creditors when it filed its petition. In its petition, the Debtor disclosed total assets of $16.9 million and total debts of $11.3 million. ROCHA DAIRY: Court OKs Robinson Anthon as Bankruptcy Lawyers ------------------------------------------------------------ The U.S. bankruptcy Court for the District of Idaho has approved Rocha Dairy, LLC's application to approve its employment of legal counsel: Brent T. Robinson, Esq. Kelly Arthur Anthon, Esq. ROBINSON, ANTHON & TRIBE 615 H Street P.O. Box 396 Rupert, ID 83350-0396 Tel: (208) 436-4717 Fax: (208) 436-6804 E-mail: btr@idlawfirm.com kaa@idlawfirm.com Brent T. Robinson and Kelly Arthur Anthon are partners at the firm. They attest that the firm does not represent or hold any interest adverse to Debtor. The firm's hourly rates are: Brent T. Robinson $200 per hour Kelly Arthur Anthon $160 per hour The Debtor has paid the firm a $15,000 retainer fee. Of that amount $4,305 was applied to prepetition fees and costs, and fees and costs incurred in the preparation and filing of the case. The balance of $10,695 is being held in trust and to be applied to postpetition fees and costs, subject to Court approval. About Rocha Dairy Based in Wendell, Idaho, Rocha Dairy, LLC, aka Rocha Farms, filed for Chapter 11 bankruptcy (Bankr. D. Idaho Case No. Case No. 11- 40836) on May 25, 2011. Judge Jim D. Pappas presides over the case. In its petition, the Debtor estimated $10 million to $50 million in assets and $1 million to $10 million in debts. The petition was signed by Elcidio Rocha, member. RQB RESORT: Sept. 15 Hearing on Chapter 11 Plan ----------------------------------------------- Gavin Daly at The Sunday Business Post Online reports that RQB Resort LP submitted a new Chapter 11 reorganization plan, proposing that Goldman Sachs would get 100 percent ownership of the company in settlement of its claim. If the plan is accepted, all the existing shareholders will have their shares cancelled and lose their investment. According to the report, the US Bankruptcy Court in Jacksonville in Florida, will consider the RQB Resort plan at a hearing on Sept. 15. If the court approves the plan, creditors of the company will then vote on its acceptance or rejection. The report says RQB Resort said it had contacted about 65 parties about investing in the resort, but had failed to get investment. It said that investors were deterred by a court ruling earlier this year that the resort was worth $132 million, meaning Goldman Sachs was entitled to recover $132 million from any new investment. About RQB Resort RQB Resort LP and RQB Development LP own Florida's Sawgrass Marriott Resort, the site of the U.S. PGA Tour's Tournament Players Championship. Ponte Vedra Beach, Florida-based RQB Resort, LP, aka Sawgrass Marriott Resort & Cabana Club, filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 10-01596) on March 1, 2010. The Company's affiliate -- RQB Development, LP, aka Sawgrass Marriott Golf Villas & Spa -- filed a separate Chapter 11 petition. The Company estimated its assets and debts at $100 million to $500 million in its Chapter 11 petition. SAFETY HARBOR: Commission Approves Deal to Buy 13-Acre Property --------------------------------------------------------------- Demorris A. Lee at St. Petersburg Times reports that the city commission of Safety Harbor, Florida, unanimously voted to move forward on an agreement to buy nearly 13 acres of property that abuts Old Tampa Bay, intending to make it a city park. According to the report, since May, the city has been in negotiations with Safety Harbor Resort and Spa to purchase the land. The deal is part of a financial restructuring plan to get the resort out of bankruptcy. Now that the commission has approved a land use agreement for the property, Safety Harbor will place $100,000 in an escrow account to set up the final purchase of the land. In addition, the commission authorized up to $13,500 for a survey of the area and $6,000 for an appraisal. The money is coming from property taxes generated from the city's Community Redevelopment Area, the report notes. The final sale price is predicated on the property appraisal. A $3.3 million city tab was presented to the commission Monday. If the appraisal comes back for more than what the city has offered, the $3.3 million offer will stand. If it's under that figure, the city can attempt to renegotiate the deal. About S.H.S. Resort The Safety Harbor Resort and Spa is one of Florida's largest and oldest spas. Known for the mineral springs that run beneath the property, the spa has been in Safety Harbor's downtown for 60 years. S.H.S. Resort LLC, a company formed by Dunedin developer Olympia Development Group, purchased the Safety Harbor Resort and Spa in 2004 for more than $20 million. Safety Harbor, Florida-based S.H.S. Resort, LLC filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 10-25886) on Oct. 28, 2010. Steven M. Berman, Esq., and Hugo S. de Beaubien, Esq., at Shumaker, Loop & Kendrick, LLP, assist the Debtor in its restructuring effort. The Debtor scheduled $8,105,980 in assets and $31,705,109 in liabilities. Safety Harbor Resort received approval from the bankruptcy judge of its financial restructuring plan in July 2011. Judge Michael G. Williamson delayed a final decision on the sale of up to 15 acres of the resort's property to the City of Safety Harbor until Sept. 7, 2011. The two parties are still trying to finalize an acceptable deal. With the resort's approved restructuring plan, its secured debt will be reduced from $30 million to about $17.8 million. Wells Fargo originally held the loan until it was sold to German American Capital Corp. According to the approved plan, the debt will be repaid over a five-year period. SHENGDATECH INC: Board Sues CEO in Chinese Reverse Merger Case -------------------------------------------------------------- Michael Bathon at Bloomberg News reports that board members of ShengdaTech Inc., a Chinese company that gained access to U.S. investors through a reverse merger, sued the chief executive officer of the bankrupt chemical maker, claiming he's obstructing an internal fraud investigation. A special committee of ShengdaTech sued Chen Xiangzhi to prevent him from regaining control of the company, ending a probe of its finances and ousting a newly appointed chief restructuring officer. Reorganizing ShengdaTech requires "the continued existence of the special committee and the CRO, and the preservation of their independent powers," the board members said in court papers filed Aug. 20 in U.S. Bankruptcy Court in Reno, Nevada, according to the report. About ShengdaTech Headquartered in Shanghai, China, ShengdaTech, Inc., makes nano precipitated calcium carbonate for the tire industry. ShengdaTech converts limestone into nano-precipitated calcium carbonate (NPCC) using its proprietary and patent-protected technology. NPCC products are increasingly used in tires, paper, paints, building materials, and other chemical products. In addition to its broad customer base in China, the Company currently exports to Singapore, Thailand, South Korea, Malaysia, India, Latvia and Italy. ShengdaTech Inc. sought Chapter 11 bankruptcy protection from creditors (Bankr. D. Nev. Case No. 11-52649) on Aug. 19, 2011, in Reno, Nevada, in the United States. The Shanghai-China based company said in its bankruptcy filing it would fire all of its officers and restructure to try to recover from an accounting scandal. The Company disclosed $295.4 million in assets and $180.9 million in debt as of Sept. 30, 2011. The Company's legal representative in its Chapter 11 case is Greenberg Traurig, LLP. The Board of Directors Special Committee's legal representative is Skadden, Arps, Slate, Meagher & Flom LLP. SKILLSOFT: S&P Affirms B+ Corp. Credit Rating; Outlook Negative --------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Nashua, N.H.-based SkillSoft to negative from stable. "We also affirmed our 'B+' corporate credit rating on the company," S&P said. "In addition, we affirmed the 'BB' bank loan rating on the company's $365 million first-lien secured debt with a recovery rating of '1', indicating very high (90%-100%) recovery in the event of a payment default. We also affirmed the 'B-' bank loan rating on the $310 million senior unsecured notes with a recovery rating of '6', indicating negligible (0%-10%) recovery in the event of a payment default," S&P related. "The rating action reflects pressures on the company's margins and its ability to reduce debt as quickly as we had earlier anticipated," said Standard & Poor's credit analyst Jacob Schlanger. Adjusted revenue has flattened despite increased investment in R&D and selling and marketing such that margins in the April quarter were pressured and annualized leverage rose to about 6x from about 5x for fiscal 2011. "We are uncertain about SkillSoft's ability to reverse the trends and reduce leverage over the coming year," added Mr. Schlanger. SKINNY NUTRITIONAL: Incurs $2.5 Million Second Quarter Net Loss --------------------------------------------------------------- Skinny Nutritional Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $2.52 million on $2.11 million of net revenue for the three months ended June 30, 2011, compared with a net loss of $2.17 million on $2.25 million of net revenue for the same period a year ago. The Company also reported a net loss of $3.39 million on $3.72 million of net revenue for the six months ended June 30, 2011, compared with a net loss of $3.21 million on $4.02 million of net revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $4.30 million in total assets, $5.15 million in total liabilities, all current, and a $850,635 stockholders' deficit. The Company reported a net loss of $6.91 million on $6.92 million of net revenue for the year ended Dec. 31, 2010, compared with a net loss of $7.30 million on $4.14 million of net revenue during the prior year. As reported by the TCR on April 25, 2011, Marcum, LLP, in Bala Cynwyd, Pennsylvania, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company had a working capital deficiency of $3,517,280, an accumulated deficit of $37,827,090, stockholders' deficit of $2,658,043 and no cash on hand. The Company had net losses of $6,914,269 and $7,305,831 for the years ended Dec. 31, 2010 and 2009, respectively. Additionally, the Company is currently in arrears under its obligation for the purchase of trademarks. Under the agreement, the seller of the trademarks may choose to exercise their legal rights against the Company's assets, which includes the trademarks. A full-text copy of the Form 10-Q is available for free at: http://is.gd/Cck3d1 About Skinny Nutritional Bala Cynwyd, Pa.-based Skinny Nutritional Corp. (OTC BB: SKNY.OB) -- http://www.SkinnyWater.com/-- has developed and is marketing a line of enhanced waters, all branded with the name "Skinny Water" that are marketed and distributed primarily to calorie and weight conscious consumers. SPARTA COMMERCIAL: Incurs $3.6 Million Net Loss in Fiscal 2011 -------------------------------------------------------------- Sparta Commercial Services, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K reporting a net loss of $3.66 million on $513,768 of total revenue for the year ended April 30, 2011, compared with a net loss of $4.14 million on $713,363 of total revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $1.48 million in total assets, $4.43 million in total liabilities and a $2.94 million total deficit. RBSM LLP, in New York, noted that the company has suffered recurring losses from operations that raises substantial doubt about the company's ability to continue as a going concern. A full-text copy of the Form 10-K is available for free at: http://is.gd/uRph8g About Sparta Commercial Based in New York, Sparta Commercial Services, Inc. -- http://www.spartacommercial.com/-- is a nationwide financial services company offering financing and leasing products to consumers and retail powersports dealers. Sparta also serves municipal and governmental agencies nationwide with its Municipal Lease Program, which offers financing for essential equipment for the law enforcement and emergency response communities. The Company's subsidiary, Specialty Reports, Inc. d/b/a Cyclechex, is in the business of offering online access to detailed product ownership and usage reports for various classes of previously owned assets. Cyclechex's initial product release is the Cyclechex Motorcycle History Report. SPECTRAWATT INC: Seeks Chapter 11 Protection -------------------------------------------- Dow Jones' DBR Small Cap reports that against quickly unraveling market conditions within the U.S. solar panel industry, solar cell manufacturer SpectraWatt Inc. filed for Chapter 11 bankruptcy protection Friday to sell itself, likely to one of a handful of foreign buyers that have considered its New York manufacturing plant that operated for mere months before shutting down. STACKPOLE POWERTRAIN: S&P Assigns 'B+' Corporate; Outlook Stable ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' long-term corporate credit rating, and stable outlook, to Ontario-based automotive supplier Stackpole Powertrain International ULC. At the same time, Standard & Poor's assigned its 'BB-' senior secured debt rating, and '2' recovery rating, to Stackpole's proposed $165 million senior secured credit facility. The facility consists of a $25 million senior secured revolver due 2016 and a US$140 million senior secured term loan due 2017. "The ratings on Stackpole reflect what we view as the company's weak business risk profile, which incorporates its relatively limited size and diversity; its need to operate as a stand-alone entity after its divestiture from Tomkins plc; and the auto parts industry's volatile demand, intense competition, and constant pricing pressure," said Standard & Poor's credit analyst Arthur Wong. Tomkins is selling Stackpole to private equity sponsor The Sterling Group (not rated). Stackpole's business is divided into two main divisions -- engineered products (oil pumps for automotive engines and transmissions) and powdered metal (manufacturing of high end components for automotive powertrain) -- each accounting for about 50% of total revenues. In terms of market share, the company holds the leading and second-leading positions, for oil pump and powdered metal parts, respectively, in North America. Stackpole is midsized, with more than $325 million in projected sales in 2011. The company is positioned to benefit from the overall general recovery in North American automotive production. "We project that automotive production should reach 13 million units in 2011, still below the recent peak production level, but above 2010's 12.2 million and well above the 8.8 million recorded in the 2009 recession year. Demand for Stackpole's variable displacement oil pumps and lightweight, but stronger, powdered metal parts should increase, as automakers are stressing increased gas mileage, in preparation for stricter mileage guidelines being set by the U.S government, and better performance. The company's products are usually associated with long-lived auto platforms that are used across several nameplates," S&P related. In the engineered products division, Stackpole provides both variable and fixed displacement oil pumps. As well, its higher- margin powdered metal components division is the second-largest supplier in the North American market. The company is a sole source provider of 93% of the platforms it supplies. Standard & Poor's considers powder metal parts as a noncommoditized product, given the complexity and margins of the product. More complex transmissions and the continued drive for performance will likely power the continued growth and penetration of powder metal automotive parts. However, the auto parts industry is fragmented and highly competitive. Stackpole competes against much larger, more diverse players such as Magna International Inc. (BBB+/Stable/--) and BorgWarner Inc. (BBB/Stable/--). "We also consider Stackpole's diversity to be relatively low. To expand overseas, Stackpole will have to displace larger, broader, and more international auto parts suppliers that likely hold long-term relationships with the other automakers. Still, the direction and pace of the auto industry recovery is also uncertain and Stackpole will have to operate as a stand-alone company after many years under the Tomkins umbrella," S&P stated. "The stable outlook reflects our expectation that Stackpole will generate positive free cash flows and improving operating performance, given the continued recovery in North American light vehicle production. However, the economy could remain sluggish and we believe the newly independent company's financial policies will be uncertain under its new private equity owners. We could lower the ratings if free operating cash flow generation turns negative for consecutive quarters or debt leverage exceeds 4x over an extended period. We consider an upgrade unlikely in the next year, given Stackpole's limited track record as an independent company; product, market, and geographic concentrations; and likely aggressive financial policies under its private equity owner," S&P related. TAVERN ON THE GREEN: Rights Get $1.3 Million Opening Bid -------------------------------------------------------- Carla Main at Bloomberg News reports that a potential buyer agreed to start the bidding for limited rights to the name Tavern on the Green at $1.3 million in an auction in Manhattan bankruptcy court. Tavern International LLC will be the opening bidder at the auction, Streambank LLC, the firm hired to find a buyer, said in a statement. Tavern on the Green LP filed for bankruptcy protection in September 2009 after losing its lease to operate the namesake restaurant in New York's Central Park. According to Bloomberg, the Company lost a fight with New York City for rights to the trademark. U.S. Bankruptcy Judge Allan Gropper in April approved a settlement between the city and the Chapter 7 trustee for the company, Jil Mazer-Marino. The terms of that accord allowed the trustee to sell the name for restaurants outside New York, New Jersey, Connecticut and part of Pennsylvania and for food products. Proceeds are to go to creditors. A hearing to approve bidding procedures will be Aug. 31, according to a court filing. If the rights are sold to another company, the stalking-horse bidder is to receive a breakup fee of $65,000, the filing states. About Tavern on the Green Tavern on the Green LP was the operator of the 75-year-old restaurant in New York's Central Park. Tavern on the Green was founded in 1934 by New York Parks Commissioner Robert Moses and the license was bought by restaurateur Warner LeRoy in 1974. The Company filed for Chapter 11 (Bankr. S.D.N.Y. Case No. 09-15450) on Sept. 9, 2009, estimating up to $50 million each in assets and debts. The restaurant closed New Year's Eve 2010. New York City -- the Tavern's landlord -- and the Debtor both claimed ownership of the "Tavern on the Green" trademark. In March 2010, the city of New York City won the right to the trade name. Following the trademark ruling, the bankruptcy judge converted the case to Chapter 7. Jil Mazer-Marino, appointed Chapter 7 trustee, appealed the ruling. The parties put the appeal on ice while they negotiated settlement. TAYLOR BEAN: Trustee Files 200 New Suits Over Transfers ------------------------------------------------------- Lisa Uhlman at Bankruptcy Law360 reports that the chief restructuring officer for Taylor Bean & Whitaker Mortgage Corp. fired off nearly 200 new lawsuits in Florida bankruptcy court Friday and Saturday, seeking to recover allegedly preferential and fraudulent transfers that were illegal under bankruptcy law. Trustee Neil F. Luria filed the suits, numbered 3:11-ap-00441 through -00635, against a slew of defendants including Sprint Nextel Corp., Moody's Investors Service Inc., Home Mortgage Corp. of America Inc., U.S. Bank NA, Mortgage Guaranty Insurance Corp., FedEx Corp. and Deloitte Touche Tohmatsu International, according to Law360. About Taylor Bean Taylor, Bean & Whitaker Mortgage Corp. grew from a small Ocala- based mortgage broker to become one of the largest mortgage bankers in the United States. In 2009, Taylor Bean was the country's third largest direct-endorsement lender of FHA-insured loans of the largest wholesale mortgage lenders and issuer of mortgage backed securities. It also managed a combined mortgage servicing portfolio of approximately $80 billion. The company employed more that 2,000 people in offices located throughout the United States. Taylor Bean sought Chapter 11 protection (Bankr. M.D. Fla. Case No. 09-07047) on Aug. 24, 2009. Taylor Bean filed the Chapter 11 petition three weeks after federal investigators searched its offices. The day following the search, the Federal Housing Administration, Ginnie Mae and Freddie Mac prohibited the company from issuing new mortgages and terminated servicing rights. Taylor Bean estimated more than $1 billion in both assets and liabilities in its bankruptcy petition. Jeffrey W. Kelly, Esq., and J. David Dantzler, Jr., Esq., at Troutman Sanders LLP, in Atlanta, Ga., and Russel M. Blain, Esq., and Edward J. Peterson, III, Esq., at Stichter, Riedel, Blain & Prosser, PA, in Tampa, Fla., represent the Debtors. Paul Steven Singerman, Esq., and Arthur J. Spector, Esq., at Berger Singerman PA, in Miami, Fla., represent the Committee. BMC Group, Inc., serves as the claims and noticing agent. TERRESTAR NETWORKS: Wants Plan Exclusivity Until Oct. 21 -------------------------------------------------------- Katy Stech at Dow Jones' Daily Bankruptcy Review reports that executives at TerreStar Networks Inc. want to push back an approaching deadline to file the company's bankruptcy-exit plan while they figure out how to distribute money from the company's $1.375 billion sale to Dish Network Corp. earlier this year. According to the report, TerreStar, which ran out of money pursuing its vision for a wireless network that runs through satellites, still hasn't figured out how to split up the roughly $310 million that remains once secured creditors are paid off. The report says executives also said their request was prompted by a handful of unsettled disputes with creditors, including a $104 million claim by Sprint Nextel Corp. over band-clearing fees. In that dispute, the two sides disagree on how to read a Federal Communications Commission ruling over the fees for bandwidth space that Sprint said TerreStar owes. The report notes TerreStar attorneys said they expect other contested claims will arise. TerreStar pointed to the progress it has made in paying off its debts. Once the company got hold of most of the sale proceeds on Aug. 11, it paid off $975 million of its secured debt obligations--including the $85 million bankruptcy loan it used to operate throughout the proceedings--to prevent interest from further draining its estate, note the report. Company officials have "been working tirelessly to distribute [that money] as fast as they can," the company said in its extension request filed Wednesday in U.S. Bankruptcy Court in Manhattan. Specifically, TerreStar is requesting an extension of its sole right to file a bankruptcy-exit plan until Oct. 21 -- a move that requires a bankruptcy judge's permission. That extension would block outside groups from filing their own plans. Company executives have asked a bankruptcy judge to go over their request at a Sept. 19 hearing. About TerreStar Corp. and TerreStar Networks TerreStar Corporation and TerreStar Holdings, Inc., filed voluntary Chapter 11 petitions with the U.S. Bankruptcy Court for the Southern District of New York on Feb. 16, 2011. TSC's Chapter 11 filing joins the bankruptcy proceedings of TerreStar Networks Inc. and 12 other affiliates, which filed on Oct. 19, 2010. The October Chapter 11 cases are procedurally consolidated under TSN's Case No. 10-15446 under Judge Sean H. Lane. TSC is the parent company of each of the October Debtors. TSC has four wholly owned direct subsidiaries: TerreStar Holdings, Inc., TerreStar New York Inc., Motient Holdings Inc., and MVH Holdings Inc. TSC's case is jointly administered with the cases of seven of the October Debtors under the caption In re TerreStar Corporation, et al., Case No. 11-10612 (SHL). The seven Debtor entities who sought joint administration with TSC are TerreStar New York Inc., Motient Communications Inc., Motient Holdings Inc., Motient License Inc., Motient Services Inc., Motient Ventures Holdings Inc., and MVH Holdings Inc. TSC is a Delaware corporation whose main asset is the equity in non-Debtor TerreStar 1.4 Holdings LLC, which has the right to use a "1.4 GHz terrestrial spectrum" pursuant to 64 licenses issued by the Federal Communication Commission. TSC also has an indirect 89.3% ownership interest in TerreStar Network, Inc., which operates a separate and distinct mobile communications business. TerreStar Holdings is a Delaware corporation that directly holds 100% of the interests in 1.4 Holdings LLC. TerreStar Networks -- TSN -- the principal operating entity of TSC, developed an innovative wireless communications system to provide mobile coverage throughout the United States and Canada using satellite-terrestrial smartphones. The system, however, required an enormous amount of capital expenditures and initially produced very little in the way of revenue. TSN's available cash and borrowing capacity were insufficient to cover its funding; thus, forcing TSN to seek bankruptcy protection in October 2010. TSC estimated assets and debts of $100 million to $500million in its Chapter 11 petition. Ira S. Dizengoff, Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, in New York, serves as counsel for the TSC and TSN Debtors. Garden City Group is the claims and notice agent. Blackstone Advisory Partners LP is the financial advisor. The Garden City Group, Inc., is the claims and noticing agent in the Chapter 11 cases. Otterbourg Steindler Houston & Rosen P.C. is the counsel to the Official Committee of Unsecured Creditors formed in TSN's Chapter 11 cases. FTI Consulting, Inc., is the Committee's financial advisor. TERRESTAR CORP: Judge Rejects Sprint's Summary Judgment Plea ------------------------------------------------------------ Ed Silverstein at TMCnet.com reports that a New York City bankruptcy judge turned down Sprint Nextel's request for partial summary judgment against bankrupt operator TerreStar. According to Reuters, Sprint had filed a claim of $104 million against TerreStar. The amount represents the share of the cost that Sprint got when acquiring bandwidth that TerreStar now uses Sprint, TMC relates, also wanted the court to declare -- a lien on TerreStar's license assets -- to be invalid or subordinate. But Judge Sean Lane argued the bankruptcy judge determines priority of Sprint's claim versus claims from other interested parties, Reuters said. TMCnet reported there are discussions underway that Sprint may try to buy the rest of Clearwire it does not already own, in some kind of collaboration with several U.S. cable companies. "In the latest rumored discussions, Sprint has been looking for some way to raise investment capital from cable operators to finance a complete buyout of Clearwire. Whether that would involve a direct cable investment in Sprint or in Clearwire is not clear," says a new report from TMCnet. A consortium of cable companies may want to acquire Clearwire, which would give them greater control of the company, TMCnet adds. About TerreStar Corp. and TerreStar Networks TerreStar Corporation and TerreStar Holdings, Inc., filed voluntary Chapter 11 petitions with the U.S. Bankruptcy Court for the Southern District of New York on Feb. 16, 2011. TSC's Chapter 11 filing joins the bankruptcy proceedings of TerreStar Networks Inc. and 12 other affiliates, which filed on Oct. 19, 2010. The October Chapter 11 cases are procedurally consolidated under TSN's Case No. 10-15446 under Judge Sean H. Lane. TSC is the parent company of each of the October Debtors. TSC has four wholly owned direct subsidiaries: TerreStar Holdings, Inc., TerreStar New York Inc., Motient Holdings Inc., and MVH Holdings Inc. TSC's case is jointly administered with the cases of seven of the October Debtors under the caption In re TerreStar Corporation, et al., Case No. 11-10612 (SHL). The seven Debtor entities who sought joint administration with TSC are TerreStar New York Inc., Motient Communications Inc., Motient Holdings Inc., Motient License Inc., Motient Services Inc., Motient Ventures Holdings Inc., and MVH Holdings Inc. TSC is a Delaware corporation whose main asset is the equity in non-Debtor TerreStar 1.4 Holdings LLC, which has the right to use a "1.4 GHz terrestrial spectrum" pursuant to 64 licenses issued by the Federal Communication Commission. TSC also has an indirect 89.3% ownership interest in TerreStar Network, Inc., which operates a separate and distinct mobile communications business. TerreStar Holdings is a Delaware corporation that directly holds 100% of the interests in 1.4 Holdings LLC. TerreStar Networks -- TSN -- the principal operating entity of TSC, developed an innovative wireless communications system to provide mobile coverage throughout the United States and Canada using satellite-terrestrial smartphones. The system, however, required an enormous amount of capital expenditures and initially produced very little in the way of revenue. TSN's available cash and borrowing capacity were insufficient to cover its funding; thus, forcing TSN to seek bankruptcy protection in October 2010. TSC estimated assets and debts of $100 million to $500million in its Chapter 11 petition. Ira S. Dizengoff, Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, in New York, serves as counsel for the TSC and TSN Debtors. Garden City Group is the claims and notice agent. Blackstone Advisory Partners LP is the financial advisor. The Garden City Group, Inc., is the claims and noticing agent in the Chapter 11 cases. Otterbourg Steindler Houston & Rosen P.C. is the counsel to the Official Committee of Unsecured Creditors formed in TSN's Chapter 11 cases. FTI Consulting, Inc., is the Committee's financial advisor. TRIBUNE CO: Appeals Court Ruling May Force Tribune to Split Assets ------------------------------------------------------------------ Tribune Company may be forced to divest its broadcast or newspaper operations in several markets following a recent appeals court's decision, Lynne Marek of Crain's Chicago Business reported. In July 2011, the U.S. Court of Appeals for the Third Circuit overturned part of the Federal Communication Commission's 2008 revamp of U.S. media-ownership rules that made it easier to own a newspaper and a broadcast outlet in the same market, according to the report. The 3rd Circuit held that the FCC's retooling of the cross-ownership rules had failed to meet public notice and comment requirements, the report relays. Tribune has obtained waivers from the FCC, thus allowing it to operate broadcast outlets in five markets where it also owns or has stakes in newspapers: Chicago, New York, Los Angeles, South Florida and Connecticut, the report adds. About Tribune Co. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 08-13141) on Dec. 8, 2008. The Debtors proposed Sidley Austin LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North America LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to the Official Committee of Unsecured Creditors. AlixPartners LLP is the Committee's financial advisor. Landis Rath Moelis & Company serves as the Committee's investment banker. Thomas G. Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the Committee in connection with the lawsuit filed against former officers and shareholders for the 2007 LBO of Tribune. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TRIBUNE CO: Names Tony Hunter CEO of Publishing Division -------------------------------------------------------- Tribune Company announced on July 18, 2011, a restructuring of its publishing division designed to streamline the organization, reposition resources and reduce expenses. As part of the restructuring, several of the division's finance and administrative functions are being reassigned to its business units in order to achieve greater efficiency. "The aggressive action we are taking today is designed to position our print and digital operations for long-term success," said Eddy Hartenstein, Tribune's president and chief executive officer. "Our consolidated financial results are ahead of plan for the first half of the year, thanks to better than expected results from our broadcasting division. The results from our publishing division, while on track, continue to experience year- over-year declines -- with several digital initiatives underway and this reorganization, we are taking steps to begin to reverse this trend." The company announced that Tony Hunter has been appointed chief executive officer of Tribune Publishing, effective immediately. Hunter assumes responsibility for the strategic priorities and day-to-day digital and print operations of seven Tribune newspaper companies including the Chicago Tribune, Sun Sentinel (South Florida), Orlando Sentinel, Baltimore Sun, Hartford Courant, The Morning Call (Allentown, PA), and Daily Press (Newport News, VA). The day-to-day publishing and digital operations of the Los Angeles Times will remain the responsibility of Kathy Thomson, who was appointed president and chief operating officer of the Times in May. She will continue to report to Hartenstein. "Tony is an experienced, hands-on leader who understands the importance of our digital efforts, and how critical they are to the success of our publishing group," said Mr. Hartenstein. "He's also helped build the Chicago Tribune Media Group into a diversified portfolio of products providing news, information and differentiated content to readers and digital users whenever and wherever they want it -- that's a model we must replicate across our markets." Mr. Hunter was a member of Tribune's executive council from October 2010 to May 2011, when the council was dissolved. He will continue serving as publisher and chief executive officer of the Chicago Tribune Media Group, a position he has held since September 2008. Vince Casanova, appointed to the newly created position of president and chief operating officer of the Chicago Tribune Media Group, will assume responsibility for its day-to-day operations. Mr. Casanova has been with Tribune for more than 30 years, holding positions of increasing responsibility at Chicago Tribune and the company's group publishing office. "Vince is the ideal executive to lead the Chicago Tribune Media Group," said Mr. Hunter. "He knows our people, the marketplace and our operations top-to-bottom, and has helped build our printing and distribution capability, resulting in substantial revenue growth." Mr. Hunter added, "Tribune has a great mix of print and digital assets, strong brands in major markets, and innovative, talented people -- we will succeed by leveraging those strengths and fiercely competing for market share." As a result of the restructuring, Bob Gremillion, EVP/Tribune Publishing, and Harry Amsden, SVP/Financial Operations for Tribune Publishing, will be leaving the company. "Bob and Harry have made significant contributions to Tribune during the course of their careers," said Mr. Hartenstein. "We are a better company today as a result of their talent and efforts and we wish them well." TRIBUNE is one of the country's leading multimedia companies, operating businesses in publishing, digital and broadcasting. In publishing, Tribune's leading daily newspapers include the Los Angeles Times, Chicago Tribune, The Baltimore Sun, Sun Sentinel (South Florida), Orlando Sentinel, Hartford Courant, The Morning Call and Daily Press. The company's broadcasting group operates 23 television stations, WGN America on national cable and Chicago's WGN-AM. Popular news and information Web sites complement Tribune's print and broadcast properties and extend the company's nationwide audience. About Tribune Co. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 08-13141) on Dec. 8, 2008. The Debtors proposed Sidley Austin LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North America LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to the Official Committee of Unsecured Creditors. AlixPartners LLP is the Committee's financial advisor. Landis Rath Moelis & Company serves as the Committee's investment banker. Thomas G. Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the Committee in connection with the lawsuit filed against former officers and shareholders for the 2007 LBO of Tribune. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TRIBUNE CO: Debtors File Periodic Rule 2015.3 Report ---------------------------------------------------- On July 29, 2011, Chandler Bigelow III, executive vice president and chief financial officer of Tribune Company, submitted with the Court a report as of December 31, 2010, and June 26, 2011, on the value, operations and profitability of certain entities in which one or more Debtors hold: (i) a combined 100% interest of certain non-debtor entities, or (ii) between a 20% and 50% interest of certain non-debtor entities. Mr. Bigelow relates in the report that the estates of Tribune Company, Tribune Broadcasting Company, TMS Entertainment Guides, Inc., Tribune Media Services, Inc., Los Angeles Times Communications LLC, Chicago Tribune Company, Eagle New Media Investments, LLC, and Tribune Media Net, Inc., hold 100% equity interest in these entities: Net Book Entity Value ------ -------------- Multimedia Insurance Company ($477,000) Riverwalk Center I JV $10,808,000 Tribune (FN) Cable Ventures, Inc. $471,273,000 Tribune Interactive, Inc. $74,542,000 Tribune National Marketing Company $33,153,000 Tribune ND, Inc. $538,034,000 Tribune Receivables, LLC $281,716,000 TMS Entertainment Guides Canada Corp $5,082,000 Tribune Hong Kong Ltd. $80,000 Tribune Media Services B.V. ($5,966,000) Blue Lynx Media Services B.V. ($5,715,000) CastTV, Inc. $9,469,000 The Periodic Report contains a combined and condensed financial report of the operations and profitability of the Non-Majority Interest Entities: Combined Balance Sheets For Non-Majority Entities As of December 31, 2010 ASSETS Current Assets Cash and cash equivalents $10,631,000 Accounts receivable, net 14,534,000 Inventories 262,000 Prepaid expenses 695,000 ------------- Total current assets 26,122,000 Property, plant & equipment, net 1,792,000 Other Assets Goodwill & other intangible a 157,000 Other investments 235,000 Receivables from related parties 2,433,000 Other 1,959,000 ------------- Total Assets $32,698,000 ============= LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) Current Liabilities Accounts payable, accrued expenses & other $13,861,000 ------------- Total current liabilities 13,861,000 Other obligations 11,867,000 ------------- Total liabilities 25,728,000 ------------- Shareholders' Equity (Deficit) 6,970,000 ------------- Total Liabilities & Shareholders' Equity (Deficit) $32,698,000 ============= Combined Balance Sheets For Non-Majority Entities As of June 26, 2011 ASSETS Current Assets Cash and cash equivalents $12,475,000 Accounts receivable, net 15,319,000 Inventories 147,000 Prepaid expenses 819,000 ------------- Total current assets 28,760,000 Property, plant & equipment, net 1,665,000 Other Assets Goodwill & other intangible assets 157,000 Other investments 235,000 Receivables from related parties 2,246,000 Other 2,211,000 ------------- Total Assets $35,274,000 ============= LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) Current Liabilities Accounts payable, accrued expenses & other $12,775,000 ------------- Total current liabilities 12,775,000 Other obligations 13,314,000 ------------- Total liabilities 26,089,000 ------------- Shareholders' Equity (Deficit) 9,185,000 ------------- Total Liabilities & Shareholders' Equity (Deficit) $35,274,000 ============= Combined Statements of Operations For Non-Majority Entities For Six Months Ended June 30, 2011 Total Revenue $30,661,000 Operating Expenses Cost of sales 7,391,000 Selling, general & administrative 21,753,000 Depreciation & amortization 321,000 ------------- Total operating expenses 29,465,000 ------------- Operating income 1,196,000 Interest expense, net (6,000) Non-operating loss, net (556,000) ------------- Income before income taxes 634,000 ------------- Income taxes (319,000) ------------- Net income $315,000 ============= Combined Statements of Cash Flows For Non-Majority Entities For Six Months Ended June 30, 2011 Beginning Cash $10,631,000 ------------- Net Income 315,000 Operating Activities Depreciation & amortization 321,000 Increase/(increase)in accounts receivables (785,000) Increase/(decrease) in current liabilities (1,086,000) Increase/(decrease) in other obligations 1,447,000 Decrease/(increase) in inventories 115,000 Decrease/(increase) in prepaids & other assets (189,000) ------------- (177,000) ------------- Net Cash Flow from Operating Activities 138,000 Investing Activities Fixed asset disposals/(purchases) (194,000) Investments 1,900,000 ------------- Net cash flow from investing activities 1,706,000 Net cash flow from financing activities - ------------- Net cash flow 1,844,000 ------------- Ending cash $12,475,000 ============= About Tribune Co. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 08-13141) on Dec. 8, 2008. The Debtors proposed Sidley Austin LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North America LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to the Official Committee of Unsecured Creditors. AlixPartners LLP is the Committee's financial advisor. Landis Rath Moelis & Company serves as the Committee's investment banker. Thomas G. Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the Committee in connection with the lawsuit filed against former officers and shareholders for the 2007 LBO of Tribune. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TRONOX INC: Keeps Bankruptcy Bankers for 'Strategic Options' ------------------------------------------------------------ Carla Main at Bloomberg News reports that Tronox Inc. said it's working with the same investment bankers who advised the paint- pigment maker during its bankruptcy reorganization as the company explores "strategic options." Chief Executive Officer Dennis L. Wanlass in a conference call declined to identify the banks or say whether they're helping Oklahoma City-based Tronox assess a possible sale. Tronox hired Moelis & Co. and Goldman Sachs Group Inc. to explore mergers and acquisitions and dividend options, Debtwire reported Aug. 16. Goldman organized a loan for Tronox in October to help it exit bankruptcy. Investment bank Rothschild Inc. advised Tronox, according to an Oct. 1 court filing. Tronox expects to keep running its plants at full capacity amid "moderate growth" in demand for the remainder of the year. Second-quarter net income jumped to $66.2 million, or $4.18 a share, from $11.8 million, or 29 cents, a year earlier as sales gained 42 percent to $428.3 million. About Tronox Inc. Tronox Inc., aka New-Co Chemical, Inc., and 14 other affiliates filed for Chapter 11 protection on Jan. 13, 2009 (Bankr. S.D.N.Y. Case No. 09-10156), before Hon. Allan L. Gropper. Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Colin M. Adams, Esq., at Kirkland & Ellis LLP in New York, represented the Debtors. The Debtors also tapped Togut, Segal & Segal LLP as conflicts counsel; Rothschild Inc. as investment bankers; Alvarez & Marsal North America LLC, as restructuring consultants; and Kurtzman Carson Consultants served as notice and claims agent. An official committee of unsecured creditors and an official committee of equity security holders were appointed in the cases. The Creditors Committee retained Paul, Weiss, Rifkind, Wharton & Garrison LLP as counsel. Until Sept. 30, 2008, Tronox was publicly traded on the New York Stock Exchange under the symbols TRX and TRX.B. Since then, Tronox has traded on the Over the Counter Bulletin Board under the symbols TROX.A.PK and TROX.B.PK. As of Dec. 31, 2008, Tronox had 19,107,367 outstanding shares of class A common stock and 22,889,431 outstanding shares of class B common stock. On Nov. 17, 2010, the Bankruptcy Court confirmed the Debtors' First Amended Joint Plan of Reorganization under Chapter 11 of the Bankruptcy Code, dated November 5, 2010. Under the Plan, Tronox reorganized around its existing operating businesses, including its facilities at Oklahoma City, Oklahoma; Hamilton, Mississippi; Henderson, Nevada; Botlek, The Netherlands and Kwinana, Australia. UCI HOLDINGS: S&P Assigns 'B' Corporate Credit Rating ----------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to UCI Holdings Ltd., the entity that files financial statements with the SEC and is the parent of UCI International Inc. (the borrower) and United Components (the operating company). The corporate credit rating was formerly assigned to UCI International Inc. The outlook is positive. "We are raising our issue-level rating on UCI International's senior secured debt to 'B+' with a recovery rating of '2', indicating our expectation of substantial (70% to 90%) recovery in the event of a default," S&P related. "The rating on UCI Holdings Ltd. reflects our view of the automotive aftermarket company's business risk profile as fair, and its financial risk profile as highly leveraged," said Standard & Poor's credit analyst Nancy Messer. The privately held company is owned by an affiliate of New Zealand private investor Graeme Hart's Rank Group Ltd. Rank Group also owns Autoparts Holdings Ltd. UCI is the parent company and guarantor of financings of United Components Inc. UCI's fair business risk profile reflects the highly competitive character of the automotive aftermarket and the company's limited revenue diversity, but also the more stable demand characteristics of the aftermarket, the company's leading position in certain product categories, and the company's recent adjusted margins of about 18% (before depreciation). The company maintained solid double-digit margins (before depreciation) during the recession because of its market position and relatively stable demand. VALLEJO, CA: Citizens Still Feeling Shockwaves From Bankruptcy -------------------------------------------------------------- Michael Bathon at Bloomberg News reports that while Vallejo, California emerged from court protection on Aug. 5, the city's citizens are still feeling the ripple effects caused by its trip through bankruptcy. "I see prostitutes, pimps and drug dealers out my front window," resident Ruth Rooney, who moved to the city in 2005, said in a telephone interview with Bloomberg's Alison Vekshin on Aug. 5. "There's two on the corner right now." Her property value has dropped 70% in six years, she said. Prostitution became a growth industry in Vallejo as the city slashed its payroll, cutting police by a third, to 90 from 134. The largest municipal bankruptcy in California since Orange County's in 1994 has forced law enforcement to focus on violent crime at the cost of quality-of-life issues, residents and officials said. "When you have half the number of people, you can only do half the amount of work," Robert Nichelini, Vallejo's police chief, said in an Aug. 15 telephone interview. "Where it's taken a toll is the lower-priority crimes, which have had to take a back seat." Interim Fire Chief Paige Meyer said his department employs 67, down from 122 in May 2008. Three of eight stations were closed about the time the city filed for bankruptcy. The sharp reduction in city services has prompted residents to fill the void, particularly in law enforcement. Vallejo has 302 neighborhood-watch associations with 2,552 members, up from 10 groups with 60 people in 2009, said Tony Pearsall, executive director of the Fighting Back Partnership, a Vallejo-based nonprofit social-services group. About Vallejo, California Vallejo -- http://www.ci.vallejo.ca.us/-- is a city in Solano County, California in the United States. As of the 2000 census, the city had a total population of 116,760. It is located in the San Francisco Bay Area on the northern shore of San Pablo Bay. It was named for General Mariano Guadalupe Vallejo. Vallejo filed for protection under Chapter 9 of the U.S. Bankruptcy Code (Bankr. E.D. Calif. Case No. 08-26813) on May 23, 2008, after it was unable to persuade labor unions to accept salary concessions as the recession began cutting into local government tax collections nationwide. Marc A. Levinson, Esq., and Norman C. Hile, Esq., at Orrick, Herrington & Sutcliffe LLP in Sacramento, California, represented the City. The city estimated $500 million to $1 billion in assets and $100 million to $500 million in debts in its petition. According to Vallejo's comprehensive annual report for the year ended June 30, 2007, the city has $983 million in assets and $358 million in debts. In August 2011, Vallejo was given green light to exit the municipal reorganization. The Chapter 9 plan restructures $50 million of publicly held debt secured by leases on public buildings. Although the Plan doesn't affect pensions, it adjusts the claims and benefits of current and former city employees. VOTORANTIM CEMENT: Moody's Assigns 'Ba1' Sr. Sec. Credit Rating --------------------------------------------------------------- Moody's Investors Service assigned Ba1 ratings to Votorantim Cement North America, Inc.'s $450 million senior secured credit facilities maturing in October 2014. The credit facilities consist of $325 million term loan and $125 million revolving credit facility. VCNA's Ba1 corporate family rating and Ba1 probability of default rating were affirmed. The rating outlook is stable. RATINGS RATIONALE VCNA's Ba1 corporate family rating is supported by its status as the largest supplier of cement in the Great Lakes region, solid asset base, and the importance of VCNA to its parent, (Baa3 rated) Votorantim Participa‡oes S.A., and its inclusion as a material subsidiary in VPAR's notes documentation, which contains cross default and cross acceleration language to its wholly-owned subsidiaries' liabilities of more than US$25 million. However, there are no formal guarantees in place. Over the past three years VPAR has evidenced its support of VCNA in the form of intercompany debt-to-equity conversions as well as common equity contributions. VCNA's ratings are constrained by its currently weakened operating margins, resulting from weakness in VCNA's construction end- markets. The company's exposure to declining commercial construction and economically weak geographic regions such as Michigan and Florida may continue to constrain its credit profile. Parent company support, and substantial debt reduction, partially mitigate risks presented by VCNA's operating weakness. The company's liquidity is supported by its senior secured revolving credit facility and lack of meaningful debt maturities in the intermediate term. VCNA's stable rating outlook reflects the company's debt reduction efforts, improvement in debt-to-EBITDA leverage, and the importance of VCNA to its parent, VPAR, and the resultant likelihood of continued significant operating and credit support provided by VPAR should the need arise. A ratings upgrade appears unlikely at present due to weak economic conditions and operating results. Longer term an upgrade could result from the upgrade of its parent's ratings, in conjunction with improved stand-alone operating results, and strong credit metrics. VCNA's ratings could be negatively pressured should debt-to-EBITDA increase beyond 3.5x, free-cash-flow turn negative, or operating margins were to remain weak for an extended period of time. Deterioration of the parent company's credit rating or diminution of its support would also likely result in a ratings downgrade. The principal methodology used in rating Votorantim Cement North America Inc. was the Global Building Materials Industry Methodology published in July 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Toronto-based Votorantim Cement North America is the North American holding company for Votorantim Cimentos' operations in the United States and Canada, operating primarily in the Great Lakes and Florida regions. VCNA and VC are ultimately owned by the Votorantim Group in Brazil. VCNA operates in 10 states in the U.S. and 2 provinces in Canada and typically derives about two-thirds of its revenues from the U.S. The company annually ships approximately 5 million tons of cement, 6 million cubic meters of concrete and 10 million tons of aggregates. In the LTM period ending June 30, 2011 VCNA generated approximately $863 million in revenues. VCNA's ultimate parent, Votorantim Participa‡oes S.A. ("VPAR" rated Baa3), is one of Brazil's largest conglomerates with a diverse business portfolio that includes banking, metals and mining, pulp and paper, cement, agribusiness, and chemicals WASHINGTON MUTUAL: FDIC Must Face $10BB Deutsche Bank Suit ---------------------------------------------------------- Patrick Fitzgerald, writing for Dow Jones Newswires, reports that Judge Rosemary M. Collyer of the U.S. District Court in Washington, D.C., denied the Federal Deposit Insurance Corp.'s request to dismiss a $10 billion lawsuit filed by a unit of Deutsche Bank AG over soured pools of mortgage loans made by Washington Mutual Bank before it was seized by regulators in 2008. Deutsche Bank, as trustee for securitized pools of more than a half million home loans, in 2009 sued both the FDIC and J.P. Morgan Chase & Co., which bought WaMu after it was seized. According to Dow Jones, the trusts at issue in the lawsuit were the focus of an investigation by a Senate subcommittee, which disclosed that WaMu's own internal reviews found that "loans marked as containing fraudulent information had nevertheless been securitized and sold to investors." The Deutsche Bank suit contends either the FDIC or J.P. Morgan should be held to account for losses in the parcels of WaMu's allegedly fraudulent or poorly underwritten home loans. According to Dow Jones, Judge Collyer said last week that it would be "improvident and premature" to dismiss the lawsuit against the FDIC until a decision is reached over whether the alleged WaMu liabilities stayed with the FDIC or were transferred to J.P. Morgan. The FDIC contends JPMorgan took on the liabilities attached to the mortgage loan securitization trusts when it bought WaMu. Judge Collyer in May rejected JPMorgan's bid to dismiss the suit in May. About Washington Mutual Based in Seattle, Washington, Washington Mutual Inc. -- http://www.wamu.com/-- is a holding company for Washington Mutual Bank as well as numerous non-bank subsidiaries. Washington Mutual Bank was taken over on Sept. 25, 2008, by U.S. government regulators. The next day, WaMu and its affiliate, WMI Investment Corp., filed separate petitions for Chapter 11 relief (Bankr. D. Del. 08-12229 and 08-12228, respectively). WaMu owns 100% of the equity in WMI Investment. When WaMu filed for protection from its creditors, it disclosed assets of $32,896,605,516 and debts of $8,167,022,695. WMI Investment estimated assets of $500 million to $1 billion with zero debts. WaMu is represented by Brian Rosen, Esq., at Weil, Gotshal & Manges LLP in New York City; Mark D. Collins, Esq., at Richards, Layton & Finger P.A. in Wilmington, Del.; and Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver & Hedges, LLP. The Debtor tapped Valuation Research Corporation as valuation service provider for certain assets. Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Fled LLP in New York and David B. Stratton, Esq., at Pepper Hamilton LLP in Wilmington, Del., represent the Official Committee of Unsecured Creditors. Stephen D. Susman, Esq., at Susman Godfrey LLP and William P. Bowden, Esq., at Ashby & Geddes, P.A., represent the Equity Committee. The official committee of equity security holders also tapped BDO USA as its tax advisor. Stacey R. Friedman, Esq., at Sullivan & Cromwell LLP and Adam G. Landis, Esq., at Landis Rath & Cobb LLP in Wilmington, Del., represent JPMorgan Chase, which acquired the WaMu bank unit's assets prior to the Petition Date. On Jan. 7, 2011, the U.S. Bankruptcy Court for the District of Delaware entered a 107-page opinion determining that the global settlement agreement, among certain parties including WMI, the Federal Deposit Insurance Corporation and JPMorgan Chase Bank, N.A., upon which the Plan is premised, and the transactions contemplated therein, are fair, reasonable, and in the best interests of WMI. Additionally, the Opinion and related order denied confirmation, but suggested certain modifications to the Company's Sixth Amended Joint Plan of Affiliated Debtors that, if made, would facilitate confirmation. Washington Mutual has filed with the Bankruptcy Court a Modified Sixth Amended Joint Plan and a related Supplemental Disclosure Statement. The Company believes that the Modified Plan has addressed the Bankruptcy Court's concerns and looks forward to returning to the Bankruptcy Court to seek confirmation of the Modified Plan. Carolyn Cairns was appointed as mediator in the WaMu proceedings. WESTERN APARTMENT: Trustee Says Hotel May Be Auctioned Off ---------------------------------------------------------- Pacific Business News reports that the trustee for the case said a beachfront hotel in Maui that is in bankruptcy may end up being sold at auction. The owner of the Maui Oceanfront Days Inn, San Diego-based Western Apartment Supply & Maintenance Co., filed for Chapter 11 bankruptcy reorganization in April. "A bankruptcy sale of the hotel is one of the obvious options that I would have to consider," said the trustee, Joe Toy, who is also president of Hospitality Advisors LLC. The report says the 88-room Kihei hotel, which is comprised of six two-story buildings and a 6,400-square-foot free-standing restaurant -- Sarento's on the Beach -- is on land leased from the state under a long-term lease that has 22 years left on it, Toy said. The hotel went on the market for sale at the end of 2010 for an undisclosed price, but it is no longer listed. An appraisal done in June by The Hallstromn Group in Honolulu put the appraised value of the leasehold property at $8.6 million, according to court records. About Western Apartment Supply Western Apartment Supply & Maintenance Company owns and operates the Days Inn Maui Oceanfront Inn at 2980 S. Kihei Road, Kihei, Maui Hawaii. It filed a Chapter 11 petition (Bankr. D. Hawaii Case No. 11-00941) in Honolulu, Hawaii, on April 5, 2011. Jeffery S. Flores, Esq., and Jerrold K. Guben, Esq., at O'Connor Playdon & Guben LLP, serve as the Debtor's bankruptcy counsel. The Debtor estimated assets and debts between $10 million and $50 million. This is the third time Western Apartment has sought bankruptcy protection. It first filed a Chapter 11 petition (Case No. 04- 00072) in January 2004 then returned to Chapter 11 (Case No. 06- 00459) in July 2006. Both cases were dismissed and Western Apartment continued to operate the hotel. WILLIAM LYON: Cut by S&P to 'D' on Missed Payment ------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on William Lyon Homes (William Lyon) to 'D' from 'CCC-' and downgraded the rating on the company's $77.8 million 7.5% unsecured notes due 2014 to 'D' from 'C'. "The recovery rating on the notes remains a '6', indicating our expectation for negligible recovery (0%-10%)," S&P related. William Lyon failed to make its scheduled Aug. 15, 2011, semi- annual interest payment of $2.9 million on the company's outstanding $77.8 million 7.5% 2014 unsecured notes due Feb. 15, 2014. The indenture governing the 2014 senior notes allows for a 30-day grace period. "However, we do not expect the company to make the scheduled interest payment within five business days of the due date. As a result, per our criteria, we have lowered the issue rating for the 2014 notes to 'D'," S&P stated. "Additionally, because we believe the company will fail to meet its remaining obligations as they come due, we have lowered the company's corporate credit rating to 'D' (rather than 'SD'). We have left unchanged the 'C' ratings assigned to the company's two other senior note issues ($66.7 million outstanding of 7.625% unsecured notes due Dec. 15, 2012 and $138.8 million outstanding of 10.75% unsecured notes due April 1, 2013). However, we would lower these issue ratings to 'D', as well, if the company does not make scheduled interest payments when due on Oct. 1, 2011 (for the 2013 notes) and Dec. 15, 2011 (for the 2012 notes), absent a prior bankruptcy filing or completion of a distressed exchange," S&P related. "The company's corporate credit rating had previously been lowered to 'SD' following the completion of a below-par tender offer (which we viewed as tantamount to default) in June 2009," S&P said. California-based William Lyon is a privately held homebuilder with communities in California, Nevada, and Arizona. These markets remain among the hardest hit by the nation's severe housing market correction. The company's secured lenders have previously granted temporary waivers for noncompliance with a tangible net worth covenant. "It is our understanding that management has been in discussions with its lenders and advisors as regards a refinancing, repayment, or restructuring of its obligations," S&P related. Ratings List Ratings Lowered William Lyons Homes Rating To From Corporate credit rating D/NM/- CCC-/Neg/- $77.8 mil. 7.5% notes due 2014 D C Recovery rating 6 6 WILLIAMS LOVE: Bank Lender Objects to Cash Collateral Use --------------------------------------------------------- Williams, Love, O'Leary & Powers, P.C., is facing opposition on its request to use cash collateral securing its obligations to its lenders. Sterling Savings Bank, which asserts a valid perfected first priority lien on substantially all of the Debtor's assets, says it hasn't had time to review the Debtor's request. The Cash Collateral Motion was filed during a time when the primary bank officer responsible for the relationship with the Debtor is on vacation. The Bank also said the Debtor's proposed budget is "woefully vague". "[T]o call it skeletal would be too generous," the Bank said. Williams Love has told the Court it requires the use of cash collateral to continue its operations, to continue to properly service its clients, and to continue prosecuting its cases. Williams Love has a national practice representing individuals in medical products liability cases. Its four shareholders are attorneys licensed to practice law in the State of Oregon. The Debtor also employs 12 persons in support positions and relies on several contract lawyers. Williams Love and Michael L. Williams, its senior shareholder, were featured in U.S. News Best Law Firms 2010 as one of the top 25 plaintiffs' mass tort firms and lawyers in the country. Michael Williams has held an AV Preeminent rating from Martindale- Hubbell for over 20 years. Shareholder Linda C. Love also holds an AV Preeminent rating from Martindale-Hubbell. Williams Love is a nationally-recognized leader in pharmaceutical mass tort litigation, and has over 700 active cases involving serious injuries caused by dangerous or defective medical products. By their nature, medical product liability cases involve complex scientific and legal issues. The investigation and analysis of the scientific and medical evidence relating to medical product liability cases is complex, time consuming, and expensive. Most of Debtor's cases are pending in federal courts, where motion practice, expert discovery, and expert testimony in advance of and at trial are particularly costly. Most of the costs advanced in such cases are paid on an out-of-pocket basis by Williams Love years before a case is tried or settled. Typically, cases are not settled until shortly before trial, after surviving Daubert challenges and summary judgment motions. The costs incurred by Williams Love in the preparation of its active cases currently exceed $3 million. The inability to deduct such costs under the tax laws, prior to the final resolution of such cases, has placed the firm under severe financial strain. By funding costs relating to the preparation of its cases, as well as funding its ongoing operating expenses, Williams Love has exhausted its credit line with Sterling Savings Bank, its primary lender. Although the firm is current on all payments to its creditors -- including interest payments owed to Sterling Savings Bank -- the firm is currently unable to fund its scheduled principal-reduction payments to Sterling Savings Bank. In addition, Williams Love is currently unable to timely pay an obligation to one of its former contract lawyers -- who recently initiated a collection action against the firm in Multnomah County Circuit Court. Many of Williams Love's cases have been or will be scheduled for trial in 2011, 2012, and 2013. The resulting revenues from their successful resolution will enable Williams Love to continue its national practice, service its clients and pay all of its creditors in full. Williams Love said it will suffer immediate and irreparable harm if it is not permitted to use the cash collateral in which the lenders claim an interest. Without use of the cash collateral, Williams Love said it may need to withdraw from its engagements with its clients and the value of its assets will be materially diminished. Williams Love's secured lenders are Sterling Savings Bank and Michael L. Williams, P.C. Both Lenders have or claim a security interest in all or substantially all of the Debtor's personal property. The firm's shareholders -- Michael L. Williams and Linda C. Love -- have guaranteed the Debtor's indebtedness to Sterling Savings Bank by (a) two Commercial Guarantys dated 9/14/08; and (b) two Commercial Guarantys dated Sept. 14, 2009. Michael L. Williams, P.C. has guaranteed $3 million of the Debtor's indebtedness to Sterling Savings Bank by its Commercial Guaranty dated Sept. 14, 2009. Williams Love has prepared a 13-week cash collateral budget. To provide adequate protection for the use of cash collateral, Williams Love proposes that each lender be granted a replacement security interest in and lien upon the Debtor's assets generated or acquired from and after the Petition Date of the same category, kind, character, and description as were subject to the lender's lien on the Petition Date. The adequate protection lien granted to the lenders will not enhance or improve the position of any lender. The Debtor believes the going concern value of the assets securing the debt owing to each lender exceeds the amount of the debt owing to each lender. Sterling Savings Bank also has objected to the Debtor's request to pay prepetition wages, salaries, compensation, expenses, benefits, and related taxes, and to continue employee benefits postpetition. About Williams Love O'Leary & Powers Based in Portland, Oregon, Williams, Love, O'Leary & Powers, P.C., fdba Williams, Dailey & O'Leary, P.C., dba WLOP and WDO.com, filed for Chapter 11 bankruptcy (Bankr. D. Ore. Case No. 11-37021) on Aug. 14, 2011. Judge Elizabeth L. Perris presides over the case. In its petition, the Debtor estimated $10 million to $50 million in assets and $1 million to $10 million in debts. The petition was signed by Michael L. Williams, its president. Attorneys for the Debtor are: Albert N. Kennedy, Esq. Michael W. Fletcher, Esq. TONKON TORP LLP 888 S.W. Fifth Avenue, Suite 1600 Portland, OR 97204-2099 Telephone: 503-221-1440 Facsimile: 503-274-8779 E-Mail: al.kennedy@tonkon.com michael.fletcher@tonkon.com Secured lender Sterling Savings Bank is represented by: David W. Criswell, Esq. BALL JANIK LLP 101 SW Main St., Suite 1100 Portland, OR 97204 Telephone: (503) 228-2525 Facsimile: (503) 295-1058 E-mail: dcriswell@balljanik.com WILLIAMS LOVE: Sec. 341 Creditors' Meeting Set for Sept. 19 ----------------------------------------------------------- The U.S. Trustee in Portland, Oregon, will convene a meeting of creditors pursuant to Sec. 341(a) of the Bankruptcy Code in the Chapter 11 case of Williams, Love, O'Leary & Powers, P.C. on Sept. 19, 2011, at 1:30 p.m. at UST1, US Trustee's Office, in Portland. The debtor's representative must be present at the meeting to be questioned under oath by the trustee and by creditors. Creditors are welcome to attend, but are not required to do so. The meeting may be continued and concluded at a later date without further notice. The court, after notice and a hearing, may order that the United States trustee not convene the meeting if the debtor has filed a plan for which the debtor solicited acceptances before filing the case. Proofs of claim are due in the case by Dec. 19, 2011. About Williams, Love, O'Leary & Powers Based in Portland, Oregon, Williams, Love, O'Leary & Powers, P.C. -- fdba Williams, Dailey & O'Leary, P.C., dba WLOP and WDO.com -- has a national practice representing individuals in medical products liability cases. Williams Love is a nationally recognized leader in pharmaceutical mass tort litigation, and has more than 700 active cases involving serious injuries caused by dangerous or defective medical products. Michael L. Williams and Linda C. Love (husband and wife) own 72.7% of the firm's outstanding shares, and are creditors of the firm. Michael L. Williams, P.C. is wholly owned by Michael L. Williams and is also a creditor of the firm. The firm and Mr. Williams were featured in U.S. News Best Law Firms 2010 as one of the top 25 plaintiffs' mass tort firms and lawyers in the country. Mr. Williams has held an AV Preeminent rating from Martindale-Hubbell for over 20 years. Ms. Love also holds an AV Preeminent rating from Martindale-Hubbell. Williams Love filed for Chapter 11 bankruptcy (Bankr. D. Ore. Case No. 11-37021) on Aug. 14, 2011. Judge Elizabeth L. Perris presides over the case. In its petition, the Debtor estimated $10 million to $50 million in assets and $1 million to $10 million in debts. The petition was signed by Michael L. Williams, its president. The Debtor is represented by Albert N. Kennedy, Esq., and Michael W. Fletcher, Esq., at Tonkon Torp LLP. Secured lender Sterling Savings Bank is represented by David W. Criswell, Esq., at Ball Janik LLP. WILLIAMS LOVE: Hiring Robert G. Burt as Corporate Counsel --------------------------------------------------------- Williams, Love, O'Leary & Powers, P.C., seeks authority from the Bankruptcy Court to employ Robert G. Burt, P.C., as special purpose counsel. Burt will serve as the Debtor's general corporate counsel but not to represent the Debtor in conducting the case. Burt served as the Debtor's general corporate counsel prepetition. Robert G. Burt, Esq., is the partner who will be primarily responsible for providing these services. Mr. Burt's hourly rate is currently $460. Burt disclosed that it has has received timely, monthly payments totaling $481,958.10 from the Debtor for legal services since Aug. 21, 10. On Aug. 8, 2011, prior to the filing of the Petition, the Debtor paid: (a) $30,890.80 to Burt for legal services rendered (fees and costs) during July 2011; and (b) $50,000 as a retainer to Burt. On Aug. 9, 2011, prior to the filing of the Petition, Debtor made a $19,100 retainer payment to Burt. On Aug. 12, 2011, prior to the filing of the Petition, Burt applied $19,100 of the retainer to prepetition services rendered (fees and costs) by Burt during August 2011. Burt said it has provided legal services during the past 18 months to: -- Michael L. Williams (Officer, Director, Shareholder, and creditor of the Debtor); -- Linda C. Love (Director, Shareholder and creditor of the Debtor); and -- Michael L. Williams, P.C. (Brother-sister corporation and creditor of the Debtor) During that period, Burt has received $72,989.41 from the Affiliates. Nothing is owed by the Affiliates to Burt for prepetition services as of Aug. 12, 2011. Michael L. Williams and Linda C. Love have guaranteed the Debtor's indebtedness to Sterling Savings Bank by (a) two Commercial Guarantys dated 9/14/08; and (b) two Commercial Guarantys dated Sept. 14, 2009. Michael L. Williams, P.C. has guaranteed $3 million of the Debtor's indebtedness to Sterling Savings Bank by its Commercial Guaranty dated Sept. 14, 2009. Burt may be reached at: Robert G. Burt, P.C. 1515 S.W. Fifth Avenue Portland, OR 97201 Tel: (503)223-3600 Fax: (503)274-0778 E-mail: rgb@burtfirm.com Web site: http://www.burtfirm.com About Williams, Love, O'Leary & Powers Based in Portland, Oregon, Williams, Love, O'Leary & Powers, P.C. -- fdba Williams, Dailey & O'Leary, P.C., dba WLOP and WDO.com -- has a national practice representing individuals in medical products liability cases. Williams Love is a nationally recognized leader in pharmaceutical mass tort litigation, and has more than 700 active cases involving serious injuries caused by dangerous or defective medical products. Michael L. Williams and Linda C. Love (husband and wife) own 72.7% of the firm's outstanding shares, and are creditors of the firm. Michael L. Williams, P.C. is wholly owned by Michael L. Williams and is also a creditor of the firm. The firm and Mr. Williams were featured in U.S. News Best Law Firms 2010 as one of the top 25 plaintiffs' mass tort firms and lawyers in the country. Mr. Williams has held an AV Preeminent rating from Martindale-Hubbell for over 20 years. Ms. Love also holds an AV Preeminent rating from Martindale-Hubbell. Williams Love filed for Chapter 11 bankruptcy (Bankr. D. Ore. Case No. 11-37021) on Aug. 14, 2011. Judge Elizabeth L. Perris presides over the case. In its petition, the Debtor estimated $10 million to $50 million in assets and $1 million to $10 million in debts. The petition was signed by Michael L. Williams, its president. The Debtor is represented by Albert N. Kennedy, Esq., and Michael W. Fletcher, Esq., at Tonkon Torp LLP. Secured lender Sterling Savings Bank is represented by David W. Criswell, Esq., at Ball Janik LLP. WILLIAMS LOVE: Taps Tonkon Torp as Bankruptcy Counsel ----------------------------------------------------- Williams, Love, O'Leary & Powers, P.C., seeks Bankruptcy Court permission to employ Tonkon Torp LLP to advise it on its debt restructuring and render general legal services to the Debtor as needed throughout the course of the Chapter 11 case. Albert N. Kennedy, Esq., and Michael F. Fletcher, Esq., will lead the engagement. Tonkon Torp will be paid on an hourly basis in accordance with Tonkon Torp's ordinary and customary hourly rates: Attorney Name Status Hourly Rate ------------- ------ ----------- Albert N. Kennedy, Esq. Partner $450 Michael W. Fletcher, Esq. Partner $325 Spencer Fisher Paralegal $125 Leslie Hurd Legal Asst/Paralegal $90 Tonkon Torp received a retainer on behalf of the Debtor in the total amount of $75,000. Prior to the filing of the bankruptcy petition, Tonkon Torp applied a portion of that retainer for prepetition services rendered prior to the Petition Date and the Chapter 11 filing fee. The remaining balance is held as a retainer. About Williams, Love, O'Leary & Powers Based in Portland, Oregon, Williams, Love, O'Leary & Powers, P.C. -- fdba Williams, Dailey & O'Leary, P.C., dba WLOP and WDO.com -- has a national practice representing individuals in medical products liability cases. Williams Love is a nationally recognized leader in pharmaceutical mass tort litigation, and has more than 700 active cases involving serious injuries caused by dangerous or defective medical products. Michael L. Williams and Linda C. Love (husband and wife) own 72.7% of the firm's outstanding shares, and are creditors of the firm. Michael L. Williams, P.C. is wholly owned by Michael L. Williams and is also a creditor of the firm. The firm and Mr. Williams were featured in U.S. News Best Law Firms 2010 as one of the top 25 plaintiffs' mass tort firms and lawyers in the country. Mr. Williams has held an AV Preeminent rating from Martindale-Hubbell for over 20 years. Ms. Love also holds an AV Preeminent rating from Martindale-Hubbell. Williams Love filed for Chapter 11 bankruptcy (Bankr. D. Ore. Case No. 11-37021) on Aug. 14, 2011. Judge Elizabeth L. Perris presides over the case. In its petition, the Debtor estimated $10 million to $50 million in assets and $1 million to $10 million in debts. The petition was signed by Michael L. Williams, its president. The Debtor's bankruptcy counsel may be reached at: Albert N. Kennedy, Esq. Michael W. Fletcher, Esq. TONKON TORP LLP 888 S.W. Fifth Avenue, Suite 1600 Portland, OR 97204-2099 Telephone: 503-221-1440 Facsimile: 503-274-8779 E-Mail: al.kennedy@tonkon.com michael.fletcher@tonkon.com Secured lender Sterling Savings Bank is represented by David W. Criswell, Esq., at Ball Janik LLP. W.R. GRACE: Court OKs Settlement of CDGS' $130-Mil. PD Claims ------------------------------------------------------------- Judge Judith Fitzgerald of the U.S. Bankruptcy Court for the District of Delaware approved the agreement entered into by W.R. Grace & Co. and its debtor affiliates in settlement of the State of California Department of General Services' asbestos property damage claims totaling $130,000,000. The Settlement Amount, which totals $4,850,000, represents a final liquidation and allowance of the Claims. CDGS' Claims are on account of damages caused to 16 California buildings allegedly contaminated with asbestos, in connection with the Debtors' business operations. Notwithstanding the provisions of the Agreement, Judge Fitzgerald ruled that neither the Asbestos Personal Injury Future Claimants' Representative, nor the Asbestos Property Damage Future Claimant's Representative, nor the Official Committee of Asbestos Personal Injury Claimants, nor the Official Committee of Asbestos Property Damage Claimants will be limited or restricted in its rights to use, construe, offer or receive the Settlement for any purpose permitted by applicable law and rule, with the PT FCR, the PD FCR, the ACC, the PD Committee and the Parties preserving all rights and objections with respect thereto, provided that in the event the Settlement is terminated in accordance with its terms, neither the PI FCR, nor the PD FCR, nor the ACC, nor the PD Committee may use the Settlement to negotiate, effectuate, consummate or carry out the Settlement, or to prosecute the request for the Settlement's approval and obtain entry of a settlement order, in or in connection with any proceeding to determine the allowed amount of the Claims, including any estimation proceeding for allowance or distribution purposes. Judge Fitzgerald also ruled that the Bankruptcy Court will retain jurisdiction to hear and determine all matters arising from or relating to the implementation of the Order and the Settlement. About W.R. Grace & Co. Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally. The Company and its debtor-affiliates filed for Chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring effort. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. W.R. Grace and its debtor affiliates, with the support of the Official Committee of Asbestos Personal Injury Claimants, the Asbestos PI Future Claimants' Representative and the Official Committee of Equity Security Holders, have submitted a proposed Chapter 11 plan of reorganization. The Chapter 11 plan is built around an April 2008 settlement for all present and future asbestos personal injury claims, and a subsequent settlement for asbestos property damage claims. The Plan confirmation hearing wrapped up on Jan. 25. Bankruptcy Creditors' Service, Inc., publishes W.R. Grace Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) W.R. GRACE: J.M. Sutherland Named VP for Investor Relations ----------------------------------------------------------- W.R. Grace & Co. (NYSE: GRA) announced that J. Mark Sutherland has joined the company as Vice President, Investor Relations. Mark joins Grace from The Lubrizol Corporation where he served as Lubrizol's investor relations officer for six years. Prior to that, Mark was the general manager of a Lubrizol specialty chemicals business. Mark joined Lubrizol in 1981 and held a number of business leadership roles in his 30-year career with the company. Mark holds a degree in chemistry from The College of Wooster and an MBA from the Weatherhead School of Management at Case Western Reserve University. "We are delighted that Mark has joined Grace," said Hudson La Force, Grace's Senior Vice President and Chief Financial Officer. "He brings a wealth of industry and professional experience to his role, and is well regarded in the investment community. We are looking forward to Mark making an immediate contribution to our investor relations activities." About W.R. Grace & Co. Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally. The Company and its debtor-affiliates filed for Chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring effort. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. W.R. Grace and its debtor affiliates, with the support of the Official Committee of Asbestos Personal Injury Claimants, the Asbestos PI Future Claimants' Representative and the Official Committee of Equity Security Holders, have submitted a proposed Chapter 11 plan of reorganization. The Chapter 11 plan is built around an April 2008 settlement for all present and future asbestos personal injury claims, and a subsequent settlement for asbestos property damage claims. The Plan confirmation hearing wrapped up on Jan. 25. Bankruptcy Creditors' Service, Inc., publishes W.R. Grace Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) W.R. GRACE: To Expand Columbia, Maryland Global Headquarters ------------------------------------------------------------ W.R. Grace & Co. is planning a three-story, 80,000-square-foot addition to its nearly 400,000-square-foot home campus in Columbia, Maryland, Gazette.Net reports citing the Company's spokeswoman, Andrea Greenan. "It's in the planning and development phase," the news agency quotes Ms. Greenan as saying. "We don't have a firm timeline. We haven't gone for permitting yet, since we have to finish up plans before going to permits." According to Ms. Greenan, the addition likely will include a new conference room, cafeteria, training center and welcome area, but it's too early to say how many, if any, employees will be added to the home base. As previously reported, Grace has been a member of the Maryland business community since the 1800s. Around 500 employees are based at the Company's global headquarters located in Howard County in Columbia on a 166-acre campus. Kevin James Shay of Gazette.Net says that the Company has an additional 500 or so at a manufacturing plant at Curtis Bay. "It gives us the opportunity for future growth," Ms. Greenan said of the expansion. About W.R. Grace & Co. Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally. The Company and its debtor-affiliates filed for Chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring effort. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. W.R. Grace and its debtor affiliates, with the support of the Official Committee of Asbestos Personal Injury Claimants, the Asbestos PI Future Claimants' Representative and the Official Committee of Equity Security Holders, have submitted a proposed Chapter 11 plan of reorganization. The Chapter 11 plan is built around an April 2008 settlement for all present and future asbestos personal injury claims, and a subsequent settlement for asbestos property damage claims. The Plan confirmation hearing wrapped up on Jan. 25. Bankruptcy Creditors' Service, Inc., publishes W.R. Grace Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ZOGENIX INC: Incurs $19.2 Million Net Loss in 2nd Quarter --------------------------------------------------------- Zogenix, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $19.2 million on $10.2 million of revenues for the three months ended June 30, 2011, compared with a net loss of $27.8 million on $5.1 million of revenues for the same period last year. The Company reported a net loss of $38.2 million on $19.3 million of revenues for the six months ended June 30, 2011, compared with a net loss of $49.3 million on $7.6 million of revenues for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $51.4 million in total assets, $58.5 million in total liabilities, and a stockholders' deficit of $7.1 million. As reported in the TCR on March 8, 2011, Ernst & Young LLP, in San Diego, Calif., expressed substantial doubt about Zogenix'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 lack of sufficient working capital. A copy of the Form 10-Q is available at http://is.gd/zBPEl7 Zogenix, Inc. (NASDAQ: ZGNX), with offices in San Diego and Emeryville, California, is a pharmaceutical company commercializing and developing products for the treatment of central nervous system disorders and pain. * $3.55-Bil. in Bankruptcy Claims Switched Hands in July -------------------------------------------------------- Katy Burne, writing for MarketWatch, reports that the value of bankruptcy claims trading privately in the secondary market reached $3.55 billion in July 2011, according to broker-dealer SecondMarket Holdings Inc. This is the most since July 2010, when a record $12.7 billion of claims were exchanged, the report says. The report says the surge is driven primarily by bets of a favorable recovery from the Lehman Brothers bankruptcy estate, pushing up the price of Lehman bankruptcy claims in recent days. According to the report: -- claims tied to Lehman Brothers Holdings Inc., accounted for 782, or 58%, of the 1,340 transfers recorded in July. This is significantly higher than the year-to-date averages: 951 for total monthly claims transfers, or 483 per month just for Lehman Brothers Holdings; and -- Lehman Brothers Holdings' 5.625% bonds due 2013 are now trading around 24 cents on the dollar, up from 22 cents in the first week of August -- mirroring a rise in Lehman Brothers Holdings claims prices to around 20 cents from the high teens. The report says claims tied to Bernard Madoff's Ponzi scheme don't show up in SecondMarket records due to a court order preventing public disclosure, but are thought to be actively traded. Madoff claims have increased from about 30 cents on the dollar to about 70 cents in recent months, one head of distressed trading at a global investment bank in New York told MarketWatch. MarketWatch also notes the July's volumes were also notable for the breadth of bankruptcy cases involved and the record number of first-time names trades. Among the record 15 newly documented names were restaurant franchisor Perkins & Marie Callender Inc., which filed for bankruptcy protection in June and accounted for 155 trades totaling $227,000, and hearing-aid maker HearUSA Inc., with 40 transfers totaling $338,000. The report relates only two other companies, Lehman Brothers Inc. -- Lehman's broker-dealer -- and low-cost airline Mesa Air Group Inc., have seen more than $1 billion of transfers since SecondMarket's recordkeeping began in 2008, with $7.42 billion and $1.53 billion, respectively. According to the report, SecondMarket said about one-third of the $3.4 billion Lehman Brothers Holdings claims transferred last month were bought and re-sold by trading desks at bulge-bracket banks, down from a record $5.6 billion a year ago. The claims averaged $4.4 million apiece. The report also relates that since Lehman collapsed in late 2008, some 6,277 Lehman Brothers Holdings claims have traded hands for a total of $50 billion. * Newspapers Edit Down Outlooks After Discouraging Year ------------------------------------------------------- Dow Jones' DBR Small Cap reports that newspaper companies are resetting their advertising expectations after a discouraging first half of the year, a shift that could spur a return to more of the job cuts and other belt-tightening moves that spread through the industry in 2008 and 2009. * Credit Markets Remain Friendly, Morgan Joseph Report Says ----------------------------------------------------------- Despite recent market turmoil, U.S. credit markets remain friendlier than a year ago, according to the latest issue of the Financial Quarterly report issued by the Financial Restructuring Group of Morgan Joseph TriArtisan LLC. "It feels like we've seen this movie before, with a pull back in loan volumes and sovereign debt concerns, it very well could be the late Spring of 2010," observes James D. Decker, Managing Director and Head of the Restructuring Group. "This go-around, the market continues to wrestle with the additional challenges posed by the debt ceiling, the S&P downgrade of U.S. creditworthiness, and general U.S. political strife. However, despite this bit of extra negative news, credit markets remain much friendlier than a year ago." Although loan volumes have waned due to macro concerns, the report adds that pricing pressure remains on lenders. Meanwhile borrowers' EBITDA growth remains impressive and the default rate remains well below historical levels. Moreover, despite lower capital inflows, loans continued to increase their share of leveraged financings and second lien loan volumes reached their highest levels since the 2007 market peak. Among other observations: * Middle market borrowers are able to access "a turn" more leverage than was available in December of 2010, and, although not the sole driver, this additional leverage has helped increase valuations and reduce equity checks in M&A transactions. * A crumbled maturity wall and completion of simple re-pricing deals means the loan market today is being tapped for de novo transactions at a much greater clip, with 70% of all issuances in the July pipeline scheduled for de novo transactions (M&A and LBO). This compares to March 2011 when that figure was less than 40% and 6 out of every 10 deals were in support of dividend recap or re-pricing/refinancing. * The maturity wall at large has crumbled, but a lag in capital markets recovery for smaller credits means more than a quarter of middle market borrowers have 2013 or earlier maturities to address. Regarding which, Mr. Decker adds, "Accordingly, it's no surprise we've seen numerous funds, BDCs, and other vehicles come to the market lately with a focus on middle market lending. These funds have recognized that there may indeed be more activity near term in the middle market, as borrowers still require capital to address maturities in addition to M&A and growth related objectives." * Expectation of continuing tailwinds for deal volumes over the next 12 to 18 months, resulting from a supportive credit market inspiring private equity investors to seek exits following a few years of a closed market that resulted in pent up selling pressure and increased investment inventory. * As pricing in the broader market continues to retract, DIP (debtor-in-possession) loans have been the exception and are being priced 100 to 200 bps higher than last year as pre-petition secured lenders exert their leverage to achieve premium pricing. * Despite a resurgence in the CLO market in the second quarter 2011, it was not at a level to increase the CLO assets under management as a percentage of the leveraged loan market. With most of the outstanding capital due to be returned to investors in the next 18 to 24 months, assets under management in CLO funds will continue to shrink as a percentage of the overall leveraged loan market. * Asset based lending (ABL) has become the preferred route for banks looking to grow commercial assets and dilute their share of real estate based loans. However, with new finance companies and lending funds pushing structures, banks are having to comply in order to hold on to market share. For borrowers, with spreads starting in the 200 range the norm, and convent tests extremely limited, the time appears right to access inexpensive and flexible capital. About Morgan Joseph Morgan Joseph TriArtisan LLC -- http://www.mjta.com-- is an investment bank engaged in providing financial advice, capital raising and private equity investing. The firm's services include mergers, acquisitions and restructuring advice, in addition to private placements and public offerings of equity and debt, as well as research and trading services for institutional clients. * Ex-Kaye Scholer Partner Seeks Dismissal of False Oath Charge -------------------------------------------------------------- Ian Thoms at Bankruptcy Law360 reports that a former Kaye Scholer LLP partner asked a Utah federal court Thursday to dismiss one count in his bankruptcy fraud case, saying the prosecution's criminal theory rests on unconstitutionally vague civil rules. Law360 relates that prosecutors claim Stephen E. Garcia committed a false oath when he neglected to disclose that he was conducting numerous business deals with an investment firm that had a hefty stake in his bankruptcy client, defunct steel mill Geneva Steel Holdings Corp. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Oct. 14, 2011 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Tampa Convention Center, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. __, 2011 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Dublin, Ireland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 25-27, 2011 TURNAROUND MANAGEMENT ASSOCIATION Hilton San Diego Bayfront, San Diego, CA Contact: http://www.turnaround.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ April 3-5, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Grand Hyatt Atlanta, Atlanta, Ga. Contact: http://www.turnaround.org/ Apr. 19-22, 2012 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2012 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ November 1-3, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Westin Copley Place, Boston, Mass. Contact: http://www.turnaround.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ April 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/ October 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers" public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors" Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2011. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***