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/raid1/www/Hosts/bankrupt/TCR_Public/110825.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, August 25, 2011, Vol. 15, No. 235 Headlines ABCLD HOLDINGS: Files Schedules of Assets and Liabilities ACCURIDE CORP: S&P Affirms 'B' Corporate Credit Rating ALABAMA AIRCRAFT: To Sell Operating Assets to Kaiser ALEXANDER PROPERTY: Court Wants Plan Outline Revised ALLIED IRISH: Exits NYSE Listing as Ireland Hikes Stake to 99.8% AMARU INC: Incurs $353,000 Second Quarter Net Loss ANDRONICO'S MARKETS: Case Summary & 20 Largest Unsecured Creditors ARK DEVELOPMENT: Counsel Quits, Northern Trust Objects ARKANOVA ENERGY: Reports $405,000 Net Income in June 30 Quarter AUGUSTA HOUSING: S&P Raises Rating on Series 2004 Bonds to 'BB+' BANNING LEWIS: City Proposes Two-Pronged Way to Settle Issue BARZEL INDUSTRIES: Court Approves Disclosure Statement BC ROGERS: Court Rules in Lawsuit Against CIT Group BEAR VALLEY: Can Hire Christopher P. Walker as Counsel BERNARD L. MADOFF: Trustee Defends 'Clawbacks' in District Court BLOCK 106: Can Hire Cole Schotz as Bankruptcy Counsel BMB MUNAI: Reports $4.3 Million Net Income in June 30 Quarter BOWE BELL: Court Directs U.S. Trustee to Appoint Retiree Committee BROWNIE'S MARINE: Incurs $2.4 Million Second Quarter Net Loss CAMPANA FAMILY: Reaches Deal With Creditors, Asks for Dismissal CAMTECH PRECISION: R&J Wants Plan Filing Exclusivity Until Oct. 14 CAMTECH PRECISION: Regions Files Limited Objection to Avstar Plan CAPITAL HOME: Seeks Dismissal as Lenders Seize Properties CARBON RESOURCES: Court OKs Substitute Counsel for M.J. Keefe CARBON RESOURCES: Files New Plan Disclosures After Denial CARIBE MEDIA: Files Restructuring Plan Giving Lenders Equity CASA BELLA: Voluntary Chapter 11 Case Summary CATHOLIC CHURCH: Milw. Lease Decision Deadline Moved to Oct. 31 CATHOLIC CHURCH: Court OKs Deposition of Milwaukee Bishops CATHOLIC CHURCH: Vatican Releases Documents in Sex Abuse Case CAVIATA ATTACHED: Wants Until Aug. 30 to File Schedules CAVIATA ATTACHED: Seeks to Hire Alan R. Smith as Counsel CENTER FOR SYSTEMS: Case Summary & 20 Largest Unsecured Creditors CENTRAL FALLS, R.I.: Receiver Fires 2 Dept. Heads, Solicitor CHEMTURA CORP: Settles Coal Tar Pitch Claims for $4.7 Million CIE COOPERATIVE: Trustee's Suit Over T-Shirts Goes to Trial CIMA, L.L.C.: Case Summary & 6 Largest Unsecured Creditors CLARK THOMAS: Case Summary & 20 Largest Unsecured Creditors CLAYTON COUNTY: S&P Lowers Rating on Housing Bonds to 'B-' CLEAR CREEK: Seeks to Tap Allen Matkins as Reorganization Counsel CLEAR CREEK: Seeks to Hire Amy N. Tirre as Local Counsel COLLEGE CORNER: Case Summary & 14 Largest Unsecured Creditors COINSTAR INC: S&P Cuts Rating on $200-Mil. Senior Notes to 'BB-' COMMANDER PREMIER: Joel Hartstone Pleads for Public Support CONFORCE INTERNATIONAL: Incurs US$661,500 Net Loss in June Qtr. CORUS BANKSHARES: Files Plan Supplement CROWN ASPHALT: Case Summary & 20 Largest Unsecured Creditors DEBT RELIEF: FTC to Close Firm Over Scam Claims DECOR PRODUCTS: Posts US$1 Million Second Quarter Net Income DELPHI CORP: DPH Files 2nd Quarter Report With Bankr. Court DELPHI CORP: Dist. Court Denies Paul Free's Motion for Judgment DELPHI CORP: Congressional Panel Examines Delphi Pension Matters DESERT OASIS: Taps Swecker & Company for Accounting, Tax Services DSI HOLDINGS: Can Hire DJM Realty as Real Estate Consultants DSI HOLDINGS: Committee Can Retain Lead & Local Counsel, Advisor EAGLE INDUSTRIES: To Seek Approval of Plan Disclosures Sept. 22 EAGLE WINDOWS: Buyer Liable in Post-Sale Tort Action ED HOLMES: Case Summary & 20 Largest Unsecured Creditors EDIETS.COM INC: Files Form 10-Q, Incurs $851,000 Q2 Net Loss EINSTEIN MOOMJY: Owners Aims for Bankruptcy Sale to Keep Biz. EINSTEIN MOOMJY: Case Summary & 20 Largest Unsecured Creditors ELEPHANT & CASTLE: Motion for Extension of Response Deadlines OK'd ELEPHANT & CASTLE: Panel Can Retain Goulston & Storss as Counsel EUROWALK RSW: Case Summary & 20 Largest Unsecured Creditors EMPRESAS MARTINEZ: Case Summary & 20 Largest Unsecured Creditors EXTENDED STAY: Trustee Fights $8BB Blackstone Suits Consolidation FIRST NAT'L BANK: FDIC Sues Former Executives Over Losses FIVE RIVERS: Case Summary & 19 Largest Unsecured Creditors GATEWAY HOTEL: Can Continue Using Cash Collateral Until Oct. 31 GENERAL MOTORS: Ch. 11 Judge Backs Away from $450MM Union Feud HARVEST OAKS: Motion for Relief of Stay on Shopping Center Denied HASSEN IMPORTS: City of West Covina Wants Asset Recovered HUDSON HEALTHCARE: Committee Wants Sills Cummis as Counsel IMUA BLUEHENS: Can Hire O'Connor Playdon as General Counsel INNKEEPERS USA: Objects to Cerberus' $20-Mil. Refund Request INTL RARITIES: Case Summary & 20 Largest Unsecured Creditors JAZS PIZZA: Case Summary & 8 Largest Unsecured Creditors J.C. EVANS: Can Hire Counsel and Financial Advisors JAMESTOWN MALL: Gets 90-Day Extension to Satisfy $2 Million Loan JEFFREY J BERTRAND: Claims Over Tug Boat Non-Dischargeable KEYUAN PETROCHEMICALS: Gets NASDAQ Delinquency Notice KOREA TECHNOLOGY: Case Summary & 18 Largest Unsecured Creditors KT SPEARS: Taps Professional Realty to Market Real Property LA VILLITA: ORIX Capital Wants Disclosure Statement Disapproved LEGENDALE LIMITED: Case Summary & Largest Unsecured Creditor LYMAN LUMBER: Committee Taps Fafinsky Mark as Bankruptcy Counsel MADELINE P CORP: Case Summary & 10 Largest Unsecured Creditors MAJESTIC CAPITAL: Seeks to Extend Exclusivity to Dec. 28 MCDONALD BROTHERS: Case Summary & 20 Largest Unsecured Creditors MIRABILIS VENTURES: Judge Accepts Dismissal of Malpractice Suit MOMENTA INC: Court Rejects Admin. Claim for Unreceived Goods NATIONAL CENTURY: NY Pension Funds' Claims Dismissed NATIONAL CENTURY: Firm Says Bankr. Ct. Has Authority vs. Stein NATIONAL CENTURY: VI/XII Trust Files Second Quarter Report NATIONAL CENTURY: UAT Files Second Quarter Report NET ELEMENT: Incurs $1.7 Million Second Quarter Net Loss NORTEL NETWORKS: Judges OK Price Cut for Internet Phone Business NORTHEAST THEATRE: Files for Chapter 7 Bankruptcy Protection NOVEMBER 2005: Hearing on Sale Procedures Continued to Sept. 8 NOVEMBER 2005: Adjusts Terms of Odyssey's Hiring Amid Objections NOVEMBER 2005: Lenders Dispute Use of Collateral to Pay Lawyers OLD COLONY: Plan Outline Hearing Scheduled for Sept. 1 OLD CORKSCREW: Can Access BMO Harris Cash Collateral Until Sept. 1 OLSEN AGRICULTURAL: Court OKs Clyde Hamstreet as Consultant PEARLAND SUNRISE: Hearing on Case Dismissal Plea Set for Sept. 19 PJ FINANCE: Court OKs CBRE Capital as Financial Advisor PMI MORTGAGE: S&P Revises Counterparty Credit Rating From 'CCC-' PTM TECHNOLOGIES: Barred From Filing Claim in Parent's Case PURADYN FILTER: Incurs $451,500 Second Quarter Net Loss QIS KNOXVILLE: Case Summary & 8 Largest Unsecured Creditors RAY ANTHONY: Motion to Prohibit Cash Collateral Use Withdrawn RED DOOR: Voluntary Chapter 11 Case Summary RENEGADE HOLDINGS: PTM's Claim Strategy Backfires RIVER ROCK: Moody's Lowers CFR to Caa2; Further Downgrade Likely ROUND TABLE: Court OKs Boylan Brown as ESOP's Co-Counsel ROUND TABLE: Franchisees Say Exit Plan is 'Dead On Arrival' RUSS COMPANIES: $52 Million in Inventory to Be Liquidated SAND HILL: Court Confirms Chapter 11 Plan of Reorganization SCOTT OLSON: Case Summary & 3 Largest Unsecured Creditors SEAHAWK DRILLING: Parent Objects to Amended Ch. 11 Plan SHAMOCK-SHAMROCK: Taps George Gingo as Litigation Attorney SHENGDATECH INC: Court Enters Temporary Restraining Order SHENGDATECH INC: Taps Michael Kang as Chief Restructuring Officer SILVER FOX: Voluntary Chapter 11 Case Summary SOUTH EDGE: Meritage Homes Faces $13-Mil. Suit Over Project Loan SPECTRAWATT INC: Plans Bankruptcy Auction of Assets on Sept. 28 SUNVALLEY SOLAR: Reports $208,610 Net Income in Second Quarter SWORDFISH FINANCIAL: Incurs $235,500 Net Loss in Second Quarter TEAM NATION: Posts $861,900 Net Income in Second Quarter TELECONNECT INC: Incurs $948,000 Net Loss in June 30 Quarter TELESERVICES GROUP: Judge Expresses Frustration Over Stern Ruling TELIPHONE CORP: Reports $1.7-Mil. Net Income in June 30 Quarter TETON AIR: Files Schedules of Assets and Liabilities TEXAS RANGERS: Tom Hicks Hits Back on Lawsuit by Administrator THINK3 INC: Taps Asaha Law Offices for Japanese Proceeding THINK3 INC: Court Approves Federico Cornia for Italian Case TIMBER SPECIALISTS: Case Summary & 20 Largest Unsecured Creditors TONGJI HEALTHCARE: Incurs $84,000 Net Loss in Second Quarter TRADE UNION: Plan Confirmation Hearing Scheduled for Sept. 2 TRADE UNION: Proposes Settlement with Bank Group Lenders TRANSAX INTERNATIONAL: Posts $8.8-Mil. Second Quarter Net Income TRANSWEST RESORT: Creditors Object to Owner's Disclosure Statement TRANT MANOR: Judge Mann Closes Chapter 11 Bankruptcy Case TRISTAR FIRE: Case Summary & 20 Largest Unsecured Creditors TROPICANA ENTERTAINMENT: Icahn Settles Casino Trademark Suit TROPICANA ENTERTAINMENT: LandCo Parties Settle With Lazard Freres UINTAH BASIN: Case Summary & Largest Unsecured Creditor UNILAVA CORPORATION: Incurs $417,900 Net Loss in Second Quarter UNITED CONTINENTAL: Court Reopens Two UAL Chapter 11 Cases UNITED CONTINENTAL: To Pay $3-Mil. to Ex-CIO Halbert UNITED CONTINENTAL: Sick Calls Cancelled 24 Continental Flights UNITED STATES OIL: Incurs $665,000 Net Loss in Second Quarter V-R PROPERTY: Case Summary & 20 Largest Unsecured Creditors WASHINGTON MUTUAL: Court Signals Plan Ruling Is Near WASHINGTON MUTUAL: Judge Keeps FDIC in Deutsche Bank's $10BB Suit WAXESS HOLDINGS: Incurs $2 Million Second Quarter Net Loss WJO INC: Exclusive Plan Filing Period Extended to Sept. 30 W.R. GRACE: Still Addressing 100+ Asbestos Claims W.R. GRACE: Cryovac Suits vs. Sealed Air Stayed * FDIC's 'Problem' List Shrinks for First Time Since 2006 * Supreme Court Ruling Curtails Power of Bankruptcy Judges * Cohen & Grigsby Adds Christine Bowers to Business and Tax Group * Paul Hastings Lures Shearman Bankruptcy, Financing Pro * Recent Small-Dollar & Individual Chapter 11 Filings ********* ABCLD HOLDINGS: Files Schedules of Assets and Liabilities --------------------------------------------------------- ABCLD Holdings, LLC, filed with the U.S. Bankruptcy Court for the Northern District of Texas its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $66,579,892 B. Personal Property $0 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $40,000,000 E. Creditors Holding Unsecured Priority Claims $194,783 F. Creditors Holding Unsecured Non-priority Claims $260,131 ----------- ----------- TOTAL $66,579,892 $40,454,914 About ABCLD Holdings Dallas, Texas-based ABCLD Holdings is a Nevada limited liability company created on March 18, 2011, to acquire properties owned by FRE Real Estate Inc. in Texas for $59.8 million. All of the capital stock of ABCLD Holdings is owned by ABC Land & Development, Inc., which is a corporation owned by Ronald Akin and DTS Holdings, LLC. FRE filed for bankruptcy Jan. 4, 2011. The case was dismissed March 1, 2011. ABCLD filed for bankruptcy to implement a prepetition settlement agreement with Armed Forces Bank, as successor by merger to Bank Midwest, N.A. is the secured creditor with respect to the acquired FRE Properties. AFB played an active role in obtaining dismissal of the FRE bankruptcy proceeding. The Agreement contemplates the foreclosure of certain of the properties, a prepackaged bankruptcy filing, and the restructuring of the AFB debt. ABCLD commenced the prepackaged Chapter 11 bankruptcy (Bankr. N.D. Tex. Case No. 11-34969) on Aug. 1, 2011. Judge Barbara J. Houser presides over the case. Melissa S. Hayward, Esq., at Franklin Skierski Lovall Hayward LLP, serves as bankruptcy counsel to the Debtor. In its petition, the Debtor estimated assets of $50 million to $100 million and debts of $10 million to $50 million. The petition was signed by Craig Landess, vice president. Armed Forces Bank is represented by Keith Miles Aurzada, Esq., at Bryan Cave LLP. The Bankruptcy Court will hold a combined hearing on Sept. 19, 2011, at 9:15 a.m. to consider approval of the disclosure statement and solicitation and voting procedures and to confirm the prepackaged Plan. ACCURIDE CORP: S&P Affirms 'B' Corporate Credit Rating ------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and stable outlook on Evansville, Ind.-based Accuride Corp. "We also affirmed the 'B' issue-level rating and '3' recovery rating to Accuride's issuance of $310 million senior secured notes," S&P related. "The affirmation of our corporate credit rating on Accuride Corp. reflects our view that the company's leverage and liquidity will stay in line with expectations for the current rating--adjusted debt to EBITDA below 5x and liquidity of over $50 million," said Standard & Poor's credit analyst Lawrence Orlowski. "Accuride Corp.'s sales and profitability continue to benefit from strong commercial vehicle demand. Nevertheless, we expect free cash flow to be negative in 2011 as company raises the level of capital expenditures to strengthen the organization, fix the Gunite business, improve its steel wheel business, grow its aluminum wheel business and, potentially, pursue strategic opportunities." "Based on these developments, we believe Accuride's debt to EBITDA, including our adjustments for operating leases and postretirement benefits, should remain below 5x by the end of 2011, compared with 4.7x at the end of June, 2011. We also believe EBITDA interest coverage could be more than 2.8x by the end of 2011. We do not expect the company to generate positive free cash flow in 2011 because of higher capital spending. These measures are consistent with our financial risk assessment of highly leveraged, under our criteria," S&P added. ALABAMA AIRCRAFT: To Sell Operating Assets to Kaiser ---------------------------------------------------- Samuel Howard at Bankruptcy Law360 reports that Alabama Aircraft Industries Inc. agreed Monday to sell its operating assets to Kaiser Aircraft Industries Inc. for $500,000 in cash and up to $30 million in proceeds from potential litigation. After failing to elicit much interest from would-be buyers, Alabama Aircraft settled on Kaiser's offer as the only way to continue as a going concern and preserve hundreds of jobs, according to Law360. About Alabama Aircraft Birmingham, Alabama-based Alabama Aircraft Industries Inc. -- http://www.alabamaaircraft.com/-- provides aircraft maintenance and modification services for the U.S. government and military customers. Its 190-acre facility, including its corporate offices, is located at the Birmingham International Airport. The Company currently has 92 salaried employees and 234 hourly employees. About 251 hourly employees were furloughed since Jan. 1, 2010. Alabama Aircraft filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 11-10452) on Feb. 15, 2011. Two subsidiaries also filed -- Alabama Aircraft Industries, Inc.- Birmingham (Case No. 11-10453) and Pemco Aircraft Engineering Services, Inc. (Case No. 11-10454). The Company said the primary goal of the Chapter 11 filing is to address long-term indebtedness and, in particular, long-term pension obligations under the terms of its pension plan. The Company said it would likely cease operations absent the elimination of its obligations under the pension plan. The Company owes $68.5 million to the Pension Benefit Guaranty Corp. Joel A. Waite, Esq., and Kenneth J. Enos, Esq., at Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware, serve as counsel to the Debtors. Alabama Aircraft estimated assets and debts of $1 million to $10 million as of the Chapter 11 filing. Hoping for a sale of the business, AAI canceled an auction for lack of an acceptable bid. AAI sought a buyer after being unable to locate an equity investor. ALEXANDER PROPERTY: Court Wants Plan Outline Revised ---------------------------------------------------- Bankruptcy Judge Thomas J. Tucker declined to grant preliminary approval of the disclosure statement contained in Alexander Property Investments, LLC's Combined Disclosure Statement and Plan of Reorganization filed Aug. 2, 2011, citing problems that the Debtor must correct. A copy of the Court's Aug. 11, 2011 Order is available at http://is.gd/baHIQsfrom Leagle.com. The revised disclosure statement was due to be filed Aug. 16. Alexander Property Investments, LLC, in Troy, Michigan, filed for Chapter 11 (Bankr. E.D. Mich. Case No. 11-52624) on May 2, 2011. The law office of Morris B. Lefkowitz, Esq. -- morris.lefkowitz@yahoo.com -- serves as bankruptcy counsel. In its schedules, the Debtor disclosed $5,500,000 in assets and $9,782,119 in debts. The petition was signed by Hana Karcho- Polselli, its member. ALLIED IRISH: Exits NYSE Listing as Ireland Hikes Stake to 99.8% ---------------------------------------------------------------- Allied Irish Banks filed with the U.S. Securities and Exchange Commission a Form 25 regarding the removal from listing or registration of its American Depositary Shares, each representing ten ordinary shares, par value EUR 0.01 per share, from the New York Stock Exchange. The Board of Directors of the Company made the decision in light of the increase in the Irish Government's shareholding to 99.8% on July 27, 2011, and the savings in costs and administrative efforts that would result from the delisting and any subsequent deregistration under the Exchange Act. About Allied Irish Banks, p.l.c. Allied Irish Banks, p.l.c. -- http://www.aibgroup.com/-- is a major commercial bank based in Ireland. It has an extensive branch network across the country, a head office in Dublin and a capital markets operation based in the International Financial Services Centre in Dublin. AIB also has retail and corporate businesses in the UK, offices in Europe and a subsidiary company in the Isle of Man and Jersey (Channel Islands). Since the onset of the global and Irish financial crisis, AIB's relationship with the Irish Government has changed significantly. As at Dec. 31, 2010, the Government, through the National Pension Reserve Fund Commission ("NPRFC"), held 49.9% of the ordinary shares of the Company (the share of the voting rights at shareholders' general meetings), 10,489,899,564 convertible non- voting ("CNV") shares and 3.5 billion 2009 Preference Shares. On April 8, 2011, the NPRFC converted the total outstanding amount of CNV shares into 10,489,899,564 ordinary shares of AIB, thereby increasing its holding to 92.8% of the ordinary share capital. In addition to its shareholders' interests, the Government's relationship with AIB is reflected through formal and informal oversight by the Minister and the Department of Finance and the Central Bank of Ireland, representation on the Board of Directors (three non-executive directors are Government nominees), participation in NAMA, and otherwise. As reported by the TCR on May 31, 2011, KPMG, in Dublin, Ireland, noted that there are a number of material economic, political and market risks and uncertainties that impact the Irish banking system, including the Company's continued ability to access funding from the Eurosystem and the Irish Central Bank to meet its liquidity requirements, that raise substantial doubt about the Company's ability to continue as a going concern. The Company reported a net loss of EUR10.16 billion on EUR1.84 billion of interest income for 2010, compared with a net loss of EUR2.33 billion on $2.87 billion of interest income for 2009. AMARU INC: Incurs $353,000 Second Quarter Net Loss -------------------------------------------------- Amaru, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss attributable to equity holders of $353,405 on $1,096 of revenue for the three months ended June 30, 2011, compared with a net loss attribubtable to equity holders of $202,081 on $38,753 of revenue for the same period a year ago. The Company also reported a net loss attributable to equity holders of $795,602 on $4,239 of total revenue for the six months ended June 30, 2011, compared with a net loss attributable to equity holders of $572,723 on $44,351 of total revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $2.99 million in total assets, $3.48 million in total liabilities, and a $487,000 total stockholders' deficit. As reported in the TCR on April 26, 2011, Mendoza Berger & Company, LLP, in Irvine, California, expressed substantial doubt about Amaru, Inc.'s ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has sustained accumulated losses from operations totaling $38.5 million at Dec. 31, 2010. A full-text copy of the Form 10-Q is available for free at: http://is.gd/fmpIXX About Amaru Inc. Singapore-based Amaru, Inc., a Nevada corporation, is in the business of broadband entertainment-on-demand, streaming via computers, television sets, PDAs (Personal Digital Assistant) and the provision of broadband services. The Company's business includes channel and program sponsorship (advertising and branding); online subscriptions, channel/portal development (digital programming services); content aggregation and syndication, broadband consulting services, broadband hosting and streaming services and E-commerce. ANDRONICO'S MARKETS: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Andronico's Markets, Inc. aka Andronico's Community Markets 1109 Washington Avenue Albany, CA 94706-1676 Bankruptcy Case No.: 11-48963 Chapter 11 Petition Date: August 22, 2011 Court: U.S. Bankruptcy Court Northern District of California (Oakland) Judge: Edward D. Jellen Debtor's Counsel: Doris A. Kaelin, Esq. LAW OFFICES OF MURRAY AND MURRAY 19400 Stevens Creek Boulevard, #200 Cupertino, CA 95014-2548 Tel: (650) 852-9000 E-mail: dkaelin@murraylaw.com - and - John Walshe Murray, Esq. LAW OFFICES OF MURRAY AND MURRAY 19400 Stevens Creek Boulevard, #200 Cupertino, CA 95014-2548 Tel: (650) 852-9000 E-mail: jwmurray@murraylaw.com - and - Robert A. Franklin, Esq. LAW OFFICES OF MURRAY AND MURRAY 19400 Stevens Creek Boulevard, #200 Cupertino, CA 95014-2548 Tel: (650)852-9000 E-mail: rfranklin@murraylaw.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by William J. Andronico, chief executive officer. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Unified Grocers, Inc. Trade Debt $1,072,727 5200 Sheila Street Commerce, CA 90040 UFCW- Employers Benefit Plans Union Employee $1,027,899 c/o Fremont Bank Benefits P.O. Box 881326 San Francisco, CA 94188-1326 Tony's Fine Foods Trade Debt $459,657 P.O. Box 1501 West Sacramento, CA 95605-1501 Nature's Best Trade Debt $283,684 6 Pointe Drive, Suite 300 Brea, CA 92821 Pacific Gas and Electric Co. Utility $238,994 Lusamerica Foods, Inc. Trade Debt $194,132 Hissho Sushi Trade Debt $157,952 Clover Stornetta Farms, Inc. Trade Debt $156,298 Area Distributors, Inc. Trade Debt $139,128 Marin Cheese Trade Debt $134,506 Seven-Up Bottling Company/Dr. Trade Debt $130,933 Pepper SNA Renaissance Specialty Food Trade Debt $124,408 One Source Magazine Dist, LLC Trade Debt $118,076 Bay Cities Produce Co., Inc. Trade Debt $117,940 Sysco Food Service OF S.F. Trade Debt $115,269 Berkeley Bazaar Landlord $112,127 Southern Wine and Spirits Trade Debt $104,078 Vince's Shellfish Trade Debt $98,420 Tomax Corporation Trade Debt $96,192 Rock Island Refrigerated Trade Debt $95,855 Distribution ARK DEVELOPMENT: Counsel Quits, Northern Trust Objects ------------------------------------------------------ Philip J. Landau and the law firm Shraiberg, Ferrara & Landau, P.A. ask the U.S. Bankruptcy Court to approve and formalize their withdrawal as counsel for debtor Ark Development/Oceanview, LLC, due to irreconcilable differences that have arisen among the parties. According to the firm, it can no longer represent the Debtor in the bankruptcy proceeding. The firm also seeks an order instructing all future communications and pleadings concerning the bankruptcy proceeding to be forwarded directly to Isaac Kodsi at 701 West Cypress Creek Road, Suite 301, in Fort Lauderdale, Florida. Creditor, Northern Trust N.A., states that while it does not object to the firm's withdrawal as counsel for the Debtor, it requests the Court to not grant the Withdrawal Motion until after the Court has ruled on the creditor's "ex-parte motion for relief from stay and for an order directing the Debtor to abandon certain collateral and confirming dismissal and abstention as to certain property." According to Northern Trust, the Debtor has failed to make a required adequate protection payment of $15,931 on Aug. 1, 2011, pursuant to the Court's Aug. 2, 2011 Final order Granting Expedited Motion for Order Approving Agreement, Granting Adequate Protection, Relief from Stay, Abstention and Dismissal of Case. Northern Trust asserts that failure to pay constituted a default under the Final Order. Northern Trust asks the Court to deny the Withdrawal Motion unless the Ex-Parte Motion has already been resolved by the Court. About Ark Development Ark Development/Oceanview LLC owns three pieces luxury homes in Fort Lauderdale, Florida -- at 1431 North Atlantic Boulevard; 1427 North Atlantic Boulevard; and 1423 North Atlantic Boulevard. All three properties are in the final stages of the construction process. The Debtor estimates that the value of each property is roughly $4 million. Ark Development/Oceanview filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 11-20382) on April 18, 2011. Judge John K. Olson presides over the case. It scheduled assets of $12,000,000 and debts of $9,772,531. The U.S. Trustee said it will not appoint at this time a committee of creditors for the Debtor's case. ARKANOVA ENERGY: Reports $405,000 Net Income in June 30 Quarter --------------------------------------------------------------- Arkanova Energy Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting net income of $405,049 on $347,081 of total revenue for the three months ended June 30, 2011, compared with a net loss of $841,394 on $257,954 of total revenue for the same period during the prior year. The Company also reported a net loss of $1.77 million on $989,031 of total revenue for the nine months ended June 30, 2011, compared with a net loss of $2.98 million on $828,881 of total revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $2.49 million in total assets, $13.59 million in total liabilities, and a $11.10 million total stockholders' deficit. As reported in the Troubled Company Reporter on Jan. 17, 2011, MaloneBailey, LLP, in Houston, expressed substantial doubt about Arkanova Energy's ability to continue as a going concern, following the Company's results for the fiscal year ended Sept. 30, 2010. The independent auditors noted that the Company has incurred losses since inception. A full-text copy of the Form 10-Q is available for free at: http://is.gd/GJRpBn About Arkanova Energy The Woodlands, Tex.-based Arkanova Energy Corporation is currently participating in oil and gas exploration activities in Arkansas, Colorado and Montana. All of Arkanova's oil and gas properties are located in the United States. AUGUSTA HOUSING: S&P Raises Rating on Series 2004 Bonds to 'BB+' ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its rating on Augusta Housing Authority, Ga.'s multifamily housing revenue bonds series 2004 to 'BB+' from 'BB'. The outlook is stable. "The upgrade is based on our view of the project's reliance on short-term market rate investments," said Standard & Poor's credit analyst Renee J. Berson. The rating reflects S&P's view of: "Revenues from mortgage debt service payments and investment earnings in our opinion are sufficient to pay full and timely debt service on the bonds plus fees in the near to medium term," S&P stated. Debt service coverage is projected to fall below investment grade levels beyond November 2034. Asset/liability parity is projected to fall below 100% in 2043. Credit strengths in the issue include S&P's opinion of: Investments held in First American Treasury Obligations Fund Class D money market fund (AAAm); and The high credit quality of the Ginnie Mae mortgage-backed security, which S&P considers to be 'AAA' eligible. "Standard & Poor's has analyzed updated financial information based on our current stressed reinvestment rate assumptions for all scenarios as set forth in the criteria for certain federal government-enhanced housing transactions. We believe the bonds are able to meet all bond costs from transaction revenues, assuming these reinvestment earnings at 'BB+' levels," S&P related. BANNING LEWIS: City Proposes Two-Pronged Way to Settle Issue ------------------------------------------------------------ Rich Laden at the Gazette reports that the city of Colorado Springs, which is in a legal battle with a Houston company that wants to buy the lion's share of the Banning Lewis Ranch and drill for oil and gas on the property, is proposing a two-pronged approach to address their differences. According to the report, the city says it's willing to support the sale of 18,000 acres of the 21,500-acre Banning Lewis Ranch to Ultra Resources, according to a proposal by the city in U.S. Bankruptcy Court in Delaware, where the ranch's current owners filed for Chapter 11 bankruptcy protection last year. The report says, but as part of its proposal, the city asked a Delaware bankruptcy judge to allow a Colorado bankruptcy court to settle the city's disputes with Ultra. The city says the company should be bound by a 23-year-old annexation agreement and other land-use controls that were intended to govern how the massive ranch would be developed; Ultra says the agreements would tie its hands at it pursues energy exploration on the property. The report relates that the city's proposal grew out of what it described as "difficult, and to some degree productive negotiations" with Ultra, according to Monday's court filing. Those negotiations have taken place outside of bankruptcy court, including at least one session in early August in which Ultra representatives met with city officials in Colorado Springs. The report notes City Council President Scott Hente, who was part of at least one of the negotiating sessions with Ultra, said Tuesday the city wants the annexation agreement and other points of contention heard by a Colorado bankruptcy court judge who would have a better understanding of the city's land-use authority under the Colorado Constitution. The Delaware bankruptcy court is already scheduled to convene a hearing, where Ultra's proposal to buy the land and an earlier motion by the city to transfer proceedings to Colorado were scheduled to be heard. At issue in the court fight is the fate of the massive Banning Lewis property, which makes up much of Colorado Springs' east side and where decades of growth -- tens of thousands of residences, shopping centers, office parks and the like -- have long been envisioned. The city annexed the property in 1988, but the property has since gone through a series of owners and only a small portion of the ranch's far north side has been developed with homes, according to the report. About Banning Lewis Banning Lewis Ranch Co. is the owner of the undeveloped portion of a 21,000-acre ranch in Colorado Springs, Colo. Banning Lewis Ranch is a master-planned community in Colorado Springs, Colorado. The first section built, the 350-acre Northtree Village, opened in September 2007 and will have 1,000 homes priced from the high $100,000s to the mid-$300,000s. Banning Lewis Ranch filed for Chapter 11 bankruptcy protection from creditors (Bankr. D. Del. Case No. 10-13445) on Oct. 28, 2010. It estimated assets of $50 million to $100 million and debts of $100 million to $500 million in its Chapter 11 petition. An affiliate, Banning Lewis Ranch Development I & II, LLC, also filed for Chapter 11 (Bankr. D. Del. Case No. 10-13446). Kevin Scott Mann, Esq., at Cross & Simon, LLC, serves as counsel to the Debtors. Edward A. Phillips of Eisner Amper LLP has been retained as the Company's chief restructuring officer. BARZEL INDUSTRIES: Court Approves Disclosure Statement ------------------------------------------------------ The Hon. Christopher S. Sontchi has approved the disclosure statement explaining the Amended Joint Plan OF Liquidation of Barzel Industries, Inc. A hearing to consider confirmation of the Plan will be held on Sept. 18, 2011, at 1:00 p.m. The voting deadline on the Plan is Aug. 29, 2011, at 5:00 p.m. According to the Disclosure Statement, "The Debtors are proposing the Plan over the alternative of converting the Debtors' bankruptcy cases to Chapter 7 of the Bankruptcy Code because the Debtors believe that (i) the Plan provides a more orderly liquidation and a greater recovery to creditors than a Chapter 7 liquidation, and (ii) the Plan provides unnecessary costs to the Debtors' estates which would accrue should the Debtors' bankruptcy cases be converted to Chapter 7 of the Bankruptcy Code." Under the Plan, administrative claims, priority tax and non tax claims, class 1 miscellaneous secured claims, and class 3 priority non-tax claims are estimated to receive 100% recovery. A copy of the Amended Disclosure Statement is available at http://bankrupt.com/misc/Barzel_disclosurestatement.pdf About Barzel Industries Norwood, Massachusetts-based Barzel Industries, Inc., was in the business of processing and distributing steel. The Company manufactured steel for the construction and industrial manufacturing industries, and produces finished commercial racking products. Barzel Industries -- aka Novamerican Steel Inc. and Symmetry Holdings Inc. -- and seven affiliates filed for Chapter 11 protection (Bankr. D. Del. Case No. 09-13204) on Sept. 15, 2009. Judge Christopher S. Sontchi presides over the cases. J. Kate Stickles, Esq., and Patrick J. Reilley, Esq., at Cole, Schotz, Meisel, Forman & Leonard, P.A., in Wilmington, Delaware, and Gerald H. Gline, Esq., at Cole, Schotz, Meisel, Forman & Leonard, P.A., in Hackensack, N.J., serve as the Debtors' counsel. On the same day, Barzel Industries filed applications for relief under the Canadian Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice -- Commercial List. Barzel Industries recorded assets of $370,145,000 against debts of $375,412,000 as of May 30, 2009. Barzel sold most of the assets in November 2009 for $75 million to Norwood, Massachusetts-based Chriscott USA Inc. Secured lenders agreed to a settlement later where they received a release of claims in return for giving up $800,000, including $500,000 earmarked solely for unsecured creditors. Barzel scheduled a Sept. 8 confirmation hearing for approval of the liquidating Chapter 11 plan. The disclosure statement says that unsecured creditors with $4.5 million in claims are estimated to have an 11% recovery from the carveout from the lenders' collateral. BC ROGERS: Court Rules in Lawsuit Against CIT Group --------------------------------------------------- Bankruptcy Judge Edward Ellington spared The CIT Group/Equipment Financing, Inc., in a lawsuit involving defunct chicken producer B.C. Rogers Poultry Inc. and B.C. Rogers Processors Inc. After B.C. Rogers defaulted on lease payments on certain industrial equipment used in its plants, lender CIT turned to the financial institutions that issued standby letters of credit supporting the lease and demanded payment of $3,000,000. The issuers paid CIT and turned to the applicants of the letters of credit, John M. Rogers, Sr., and J. Kelley Williams, for reimbursement. Messrs. Rogers and Williams reimbursed the issuers and turned to B.C. Rogers, but were unsuccessful. Messrs. Rogers and Williams now turn to CIT, the beneficiary of the letters of credit, for the return of $3,000,000, damages, interest, and attorney's fees. Judge Ellington ruled that the relief sought by Messrs. Rogers and Williams against CIT in their Second Amended Complaint is not well taken and should be denied. In an Aug. 19, 2011 Findings of Fact and Conclusions of Law, a copy of which is available at http://is.gd/ZCjHFYfrom Leagle.com, Judge Ellington said that as seasoned businessmen and former owners of B.C. Rogers, Messrs. Rogers and Williams understood the risk they undertook when they agreed to provide the letters of credit as part of the refinancing plan required by the Senior Lenders. At the time, the risk was acceptable to them. "Although BCR did not recover from its financial struggles, as Rogers and Williams had expected, their financial loss was not anyone's fault but the result of a confluence of events and decisions, any one of which was perhaps insignificant by itself but together proved insurmountable to BCR's financial health," Judge Ellington said. B.C. Rogers Poultry Inc. and B.C. Rogers Processors Inc. filed for Chapter 11 bankruptcy (Bankr. S.D. Miss. Lead Case No. 01-06516) on Nov. 19, 2001. Only a decade before it met its financial demise, BCR was one of the largest producers, processors, and wholesalers of chicken products in the nation. It was founded in central Mississippi in the early 1930s by B.C. Rogers. When he died in 1972, ownership of BCR passed to his three children. BCR remained a family-owned company until 1981, when John M. Rogers, Sr., and J. Kelley Williams purchased all of BCR's stock from the heirs of B.C. Rogers (including from Rogers himself) and each acquired a 50% interest. The lawsuit is styled, JOHN M. ROGERS, SR., AND J. KELLEY WILLIAMS, AS TRUSTEE OF THE J. KELLEY WILLIAMS REVOCABLE TRUST, v. THE CIT GROUP/EQUIPMENT FINANCING, INC., AND H. KENNETH LEFOLDT, AS LIQUIDATING TRUSTEE OF THE B.C. ROGERS LIQUIDATING TRUST, Adv. Proc. No. 03-00122 (Bankr. S.D. Miss.). Attorneys for Plaintiffs are: James W. O'Mara, Esq. Debra M. Brown, Esq. PHELPS DUNBAR LLP 4270 I-55 North Jackson, MS 39211-6391 Tel: (601) 360-9720 Fax: (601) 360-9777 E-mail: jim.omara@phelps.com debra.brown@phelps.com Attorneys for The CIT Group/Equipment Financing, Inc., are: William H. Leech, Esq. Danny E. Ruhl, Esq. COPELAND, COOK, TAYLOR & BUSH, P.A. 1076 Highland Colony Parkway Concourse 600, Suite 100 Ridgeland, MS 39157 Tel: 601-856-7200 E-mail: bleech@cctb.com druhl@cctb.com Attorney for H. Kenneth Lefoldt, Jr., as Liquidating Trustee of the B.C. Rogers Liquidating Trust, is: J. Walter Newman, IV 248 E Capitol St Ste 539 Jackson, MS 39201 BEAR VALLEY: Can Hire Christopher P. Walker as Counsel ------------------------------------------------------ Having found that the law firm represents no interest adverse to the estate with respect to matters upon which it is to be engaged, the U.S. Bankruptcy Court for the Central District of California approved the application of Bear Valley Family Limited Partnership to employ Law Office of Christopher P. Walker, P.C. as its general bankruptcy counsel. Counsel can be contacted at: Christopher P. Walker, Esq. LAW OFFICE OF CHRISTOPHER P. WALKER, P.C. 505 S. Villa Real Drive, Suite 116 Anaheim Hills, California 92807 Tel: 714-639-1990 Fax: 714-637-1636 About Bear Valley Family Based in Costa Mesa, California, Bear Valley Family Limited Partnership filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-17893) on June 2, 2011. Christopher P. Walker, Esq., at the Law Office of Christopher P. Walker, P.C., at Anaheim Hills, Calif., serves as the Debtor's general bankruptcy counsel.Judge Robert N. Kwan presides over the case. The Debtor scheduled assets of $14,006,000 and liabilities of $7,353,409. BERNARD L. MADOFF: Trustee Defends 'Clawbacks' in District Court ---------------------------------------------------------------- Michael Bathon at Bloomberg News reports that Irving Picard, the trustee liquidating Bernard L. Madoff's firm, defended a "clawback" lawsuit against a doctor who invested in the Ponzi scheme, saying a U.S. appeals court ruling backed up his claim that fictitious paper profits are an "absurd" measure of investors' holdings. According to the report, Gerald Blumenthal, the investor, is asking a U.S. District Court judge to rule on his argument that the Madoff estate owes him the amount reflected on his Madoff brokerage statements. The report recounts that a federal appeals court in New York ruled on Aug. 16 that in calculating what to pay Madoff customers, Mr. Picard should ignore fictitious profit, which merely reflected the con man's "machinations." While the court didn't say what Mr. Picard can take from investors, his argument for clawing back profit was "bolstered" by the ruling, said Peter Henning, a professor at Wayne State University in Detroit. 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. BLOCK 106: Can Hire Cole Schotz as Bankruptcy Counsel ----------------------------------------------------- The Honorable Donald H. Steckroth authorized Block 106 Development, LLC to employ Cole, Schotz, Meisel, Forman & Leonard, P.A., as its bankruptcy counsel, effective as of the Petition Date. The firm can be contacted at: COLE, SCHOTZ, MEISEL, FORMAL & LEONARD, P.A. A Professional Corporation 25 Main Street P.O. Box 800 Hackensack, New Jersey 07602-0800 Tel: (201) 489-3000 Fax: (201) 489-1536 About Block 106 Development Block 106 Development, LLC, filed for Chapter 11 bankruptcy (Bankr. D. N.J. Case No. 11-27050) on June 1, 2011. Judge Donald H. Steckroth presides over the case. Michael D. Sirota, Esq., at Cole, Schotz, Meisel, Forman & Leonard, P.A., serves as the Debtor's bankruptcy counsel. In its petition, the Debtor estimated $10 million to $50 million in assets and $1 million to $10 million in debts. Block 106 is affiliated with Tarragon Corporation and various related entities which filed for bankruptcy (Bankr. D. N.J. Lead Case No. 09-10555) Jan. 12, 2009. Michael D. Sirota, Esq., Warren A. Usatine, Esq., and Felice R. Yudkin, Esq., at Cole Schotz, represented the Tarragon Debtors as bankruptcy counsel. Tarragon's Joint Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection in July 2010. Based in New York City, Tarragon Corp. (NasdaqGS:TARR) -- http://www.tarragoncorp.com/-- is a developer of multifamily housing for rent and for sale. Tarragon's operations are concentrated in the Northeast, Florida, Texas, and Tennessee. BMB MUNAI: Reports $4.3 Million Net Income in June 30 Quarter ------------------------------------------------------------- BMB Munai, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting net income of $4.32 million on $0 of revenue for the three months ended June 30, 2011, compared with net income of $871,868 on $0 of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $326.89 million in total assets, $103.95 million in total liabilities, and $222.93 million total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/QyLHqa About BMB Munai Based in Almaty, Kazakhstan, BMB Munai, Inc., is a Nevada corporation that originally incorporated in the State of Utah in 1981. Since 2003, its business activities have focused on oil and natural gas exploration and production in the Republic of Kazakhstan through its wholly-owned operating subsidiary Emir Oil LLP. Emir Oil holds an exploration contract that allows the Company to conduct exploration drilling and oil production in the Mangistau Province in the southwestern region of Kazakhstan until January 2013. The exploration territory of its contract area is approximately 850 square kilometers and is comprised of three areas, referred to herein as the ADE Block, the Southeast Block and the Northwest Block. The Company realized a loss from continuing operations of $15.1 million during fiscal year 2011 compared to $10.7 million during fiscal year 2010. This 41% increase in loss from continuing operations was primarily attributable to increased general and administrative and interest expense and the foreign exchange loss of $415,803 incurred during fiscal year 2011. Hansen, Barnett & Maxwell, P.C., in Salt Lake City, said that as a result of the pending sale of Emir Oil LLP, BMB Munai will have no continuing operations that result in positive cash flow, which raise substantial doubt about its ability to continue as a going concern. The Company did not generate any revenue during the fiscal years ended March 31, 2011, and 2010, except from oil and gas sales through Emir Oil. Bankruptcy Warning The Company has disclosed that if it does not complete the sale, it will not have sufficient funds to retire the restructured Senior Notes when they become due. "In this event, we would likely be required to consider liquidation alternatives, including the liquidation of our business under bankruptcy protection," the Company said. BOWE BELL: Court Directs U.S. Trustee to Appoint Retiree Committee ------------------------------------------------------------------ The Hon. Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware directed the U.S. Trustee for Region 3 to form a retiree committee in the Chapter 11 cases of Mail Systems Liquidation, Inc., et al., formerly known as Bowe Systec, Inc., et al. Previously, Harold R. Van Seters requested that the Court reinstate retiree benefits and appoint a retiree committee in the Debtors' cases. About Bowe Bell Headquartered in Wheeling, Ill., BOWE BELL + HOWELL -- http://www.bowebellhowell.com/-- is a leading provider of high- performance document management solutions and services. In 1936, the company pioneered gripper arm mail-inserting systems and has one of the world's largest installed bases of such inserters as a result of the technology's flexibility, performance and reliability. The company's complete portfolio of inserting, sorting, plastic card, integrity, cutting, packaging, print-on- demand and software solutions is one of the most comprehensive product offerings for paper-based communications. These solutions are supported by one of the largest dedicated service organizations in the industry. In addition to its headquarters offices, the company maintains major manufacturing and service locations in Durham, N.C. and Bethlehem, Penn. Bowe Bell + Howell sought bankruptcy protection in the U.S. as part of a deal to itself to creditor Versa Capital Management Inc. to pay off debt. Bowe Systec, Inc., Bowe Bell + Howell Holdings, Inc., and other affiliates, including Bowe Bell + Howell Holdings, Inc., filed Chapter 11 petitions (Bankr. D. Del. Lead Case No. 11-11186) on April 18, 2011. Bowe Systec estimated assets and debt of $100 million to $500 million as of the bankruptcy filing. Mark D. Collins, Esq., Michael J. Merchant, Esq., and Lee E. Kaufman, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, serve as the Debtors' bankruptcy counsel. McDermott Will & Emery is the Debtors' special corporate counsel. Focus Management Group is the Debtors' financial advisors. Lazard Middle Market LLC is the Debtors' investment banker. The Garden City Group, Inc is the Debtors' claims and notice agent. Bowe Bell + Howell International Ltd., BBH's Canadian subsidiary, commenced parallel ancillary proceeding under Part IV of the Companies' Creditors Arrangement Act. BBH Canada, as the proposed foreign representative for the Debtors in the ancillary proceeding, will ask an Ontario Superior Court judge to recognize the bankruptcy proceedings in the U.S. PricewaterhouseCoopers Inc. is the prospective Information Officer in the Canadian Proceeding. Versa Capital Management, Inc. on June 27 announced the completion of its previously publicized acquisition of the assets of Bowe Bell + Howell and the formation of a new company and brand, Bell and Howell, LLC. BROWNIE'S MARINE: Incurs $2.4 Million Second Quarter Net Loss ------------------------------------------------------------- Brownie's Marine Group, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $2.46 million on $597,194 of total net revenues for the three months ended June 30, 2011, compared with a net loss of $291,740 on $658,065 of total net revenues for the same period a year ago. The Company also reported a net loss of $2.73 million on $960,094 of total net revenues for the six months ended June 30, 2011, compared with a net loss of $359,894 on $1.12 million of total net revenues for the same period during the prior year. The Company ended 2010 with a $1.2 million net loss on $2.2 million of revenues and 2009 with a net loss of $451,227 on $2.4 million of revenues. The Company's balance sheet at June 30, 2011, showed $2.15 million in total assets, $2.38 million in total liabilities and a $227,484 total stockholders' deficit. L.L Bradford & Company, LLC, in Las Vegas, Nevada, expressed substantial doubt about Brownie's Marine Group's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has a working capital deficiency and recurring losses and will need to secure new financing or additional capital in order to pay its obligations. Bankruptcy Warning The Company said that if it fails to raise additional funds when needed, or do not have sufficient cash flows from sales, the Company may be required to scale back or cease operations, liquidate its assets and possibly seek bankruptcy protection. A full-text copy of the Form 10-Q is available for free at: http://is.gd/fh6A6p About Brownie's Marine Brownie's Marine Group, Inc. (OTC BB: BWMG) -- http://www.brownismarinegroup.com/-- designs, tests, manufactures and distributes recreational hookah diving, yacht based scuba air compressor and nitrox generation systems, and scuba and water safety products. BWMG sells its products both on a wholesale and retail basis, and does so from its headquarters and manufacturing facility in Fort Lauderdale, Florida. CAMPANA FAMILY: Reaches Deal With Creditors, Asks for Dismissal --------------------------------------------------------------- Campana Family LLC asks the U.S. Bankruptcy Court for the District of Arizona to dismiss its Chapter 11 bankruptcy case because it has reached settlement with its creditors and is no longer needing bankruptcy relief. On July 26, 2011, the Debtor moved to vacate a hearing scheduled for July 28 on the disclosure statement explaining its proposed Chapter 11 plan. The Debtor related that it has reached an agreement in substance with Mohave State Bank, the sole secured creditor and primary interested party on Debtor's "dirt for debt" plan. The Debtor added that once documentation of the settlement is finalized, it intends to move to dismiss its bankruptcy case. The Plan proposed by the Debtor provided for the transfer of Debtor's primary asset to the Mohave State Bank in full satisfaction of the Bank's claim against the Debtor. About Campana Family, LLC Scottsdale, Arizona-based Campana Family, LLC, is a real estate developer in Arizona. The Company owns a partially completed real estate subdivision in Kingman, Mohave County, Arizona known as Castlerock Village, consisting of 75 improved residential lots. It also owns 213 partially improved premilinary platted lots. The Company owns 23 additional acres adjoining Castlerock Village, part of which is zoned R-2 for multi-unit apartments, part as C-2 zoning for mini-storage and part as C-1 for commercial development. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Ariz. Case No. 11-00530) on Jan. 8, 2011. The Hendrickson Law Firm, PLLC, represents the Debtor in its restructuring effort. The Debtor disclosed $11,077,036 in assets and $3,241,510 in liabilities as of the Chapter 11 filing. CAMTECH PRECISION: R&J Wants Plan Filing Exclusivity Until Oct. 14 ------------------------------------------------------------------ R&J National Enterprises, Inc., asks the U.S. Bankruptcy Court for the Southern District of Florida to further extend its exclusive right to file a plan of reorganization through and including Oct. 14, 2011, and its exclusive right to solicit acceptances to a filed plan of reorganization through and including Dec. 16, 2011. This is R&J's 8th request for an extension of the Exclusive Periods. R&J says its needs additional time to resolve contingencies and negotiate with its creditors. R&J's exclusive periods currently expire on Aug. 15, 2011, and Oct. 17, 2011, respectively. Avstar Fuel Systems, Inc.'s Plan and Disclosure Statement was filed on July 5, 2011. About Camtech Precision Avstar, founded in 2007, designs, manufactures and overhauls carburetors and fuel injection systems for aviation industry. Avstar is the holder of Federal Aviation Administration Parts Manufacturer Approvals for general aviation fuel systems. Avstar generates sales primarily from new product sales and overhauls of carburetors and servos for the general aviation industry. Jupiter, Florida-based Camtech Precision Manufacturing, Inc., Avstar Fuel Systems, Inc., and R & J National Enterprises, Inc., filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case Nos. 10-22760, 10-22762 and 10-22762) on May 10, 2010. Bradley S. Shraiberg, Esq., who has an office in Boca Raton, Florida, serve as counsel to the Debtors. Carlos E. Sardi, Esq., and Glenn D. Moses, Esq., who have an office in Miami, Florida, represent the Official Committee of Unsecured Creditors. In its schedules, Camtech disclosed assets of $10,977,673 and debts of $14,625,066. CAMTECH PRECISION: Regions Files Limited Objection to Avstar Plan ----------------------------------------------------------------- Regions Bank has filed a limited objection to the disclosure statement and Chapter 11 Plan of Reorganization proposed by Avstar Fuel Systems, Inc., filed July 5, 2011. Regions states:. 1. Under the Plan, Regions Bank will receive $1,920,000 in 96 equal payments of $20,000 in full satisfaction, settlement, release, extinguishment and discharge of its claim. Regions says that while it does not object to the terms as stated, neither the disclosure statement nor the Plan reflects that the Reorganized Debtor will provide Regions with a loan document evidencing the $1,920,000 obligation and resulting security interest. 2. Regions says that it has not agreed to dismiss with prejudice its appeal of the order granting plaintiff's motion for summary judgment (ADV DE #17) and final judgment (ADV DE #18) in the adversary case styled Official Committee of Unsecured Creditors v. Regions Bank (Adversary No. 10-3479-BKC-PGH-A), whereby the Court determined that Regions failed to perfect its security interest in the assets of Camtech and Avstar, thereby rendering Regions an unsecured rather than a secured creditor. The Disclosure Statement and the Plan provide, inter alia: "If Regions votes in favor of the Plan, Regions agrees to dismiss this appeal with prejudice." Regions says that the Disclosure Statement and Plan should be amended to either (a) remove the above sentence; or (b) disclose that if Regions votes in favor of the Plan, the Debtor will request that Regions dismiss the appeal with prejudice, however, Regions has not agreed to such dismissal. The Chapter 11 Plan As reported in the TCR on July 28, 2011, Avstar Fuel Systems, Inc., a debtor-affiliate of Camtech Precision Manufacturing, Inc., et al., submitted to the U.S. Bankruptcy Court for the Southern District of Florida, a Plan of Reorganization and explanatory disclosure statement as of July 5, 2011. Cash payments under the Plan will come from the operation of the Debtor's business in the ordinary course prior to and after the effective date. Claims and interests will be treated as follows: Class 1 -- Allowed DIP Lender Claim ($150,000). On the effective date, the DIP lender will subordinate its claims to all allowed claims as its purchase price for the Debtor's equity. Class 2 -- Allowed Regions Secured Claim. On the effective date, Regions will receive: (i) $1,920,000 in 96 equal monthly payments of $20,000; (ii) a security interest in the furniture, fixture and equipment of the Debtor to secured payment of the $1,920,000; and (iii) the respective personal guaranties of Ronald Weaver, an insider of the Debtor, and his wife Jacqueline Weaver, for any amounts owed to Regions with respect to $1,920,000. Class 3 Allowed Wells Fargo Equipment Finance Inc. Claim. Commencing on the effective date, Wells Fargo will receive a total of $105,000 in 60 equal monthly payments of $1,750. The Debtor will be permitted to prepay without penalty. Class 4 Allowed General Unsecured Claims ($168,297, excluding any claims by Air Craft Carburetors and Precision Airmotive). Commencing within 90 dates after the effective date, holders of general unsecured claims will be paid in the full amount of their allowed claims in equal quarterly payments for 60 months, which will accrue at an interest of 5% per annum, or at a rate as otherwise determined by the Court. Class 5 Allowed Equity Interests. On the effective date, all allowed equity interests in the Debtor will be deemed canceled and extinguished. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/CAMTECHPRECISION_AVSTARDS.pdf About Avstar Fuel Avstar, founded in 2007, designs, manufactures and overhauls carburetors and fuel injection systems for aviation industry. Avstar is the holder of Federal Aviation Administration Parts Manufacturer Approvals for general aviation fuel systems. Avstar generates sales primarily from new product sales and overhauls of carburetors and servos for the general aviation industry. Jupiter, Florida-based Camtech Precision Manufacturing, Inc., Avstar Fuel Systems, Inc., and R & J National Enterprises, Inc., filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case Nos. 10-22760, 10-22762 and 10-22762) on May 10, 2010. Bradley S. Shraiberg, Esq., who has an office in Boca Raton, Florida, serve as counsel to the Debtors. Carlos E. Sardi, Esq., and Glenn D. Moses, Esq., who have an office in Miami, Florida, represent the Official Committee of Unsecured Creditors. In its schedules, Camtech disclosed assets of $10,977,673 and debts of $14,625,066. CAPITAL HOME: Seeks Dismissal as Lenders Seize Properties --------------------------------------------------------- On Sept. 6, 2011, at 10:30 a.m., Capital Home Sales, LLC, Drake Rentals, LLC, and Emerald One, LLC, will present to the U.S. Bankruptcy Court for the Northern District of Illinois their respective motions to dismiss their Chapter 11 cases. With respect to Debtor Capital Home Sales, LLC, the Court has entered orders modifying the stay with respect to the collateral of the following banks: Date of Order ------------- TCF National Bank ("TCF") May 6, 2011 Delaware Place Bank ("DPB") July 19, 2011 Village Bank and Trust ("VBT") July 19, 2011 MB Financial Bank ("MB") March 18, 2011 While First Chicago Bank & Trust ("FCBT") has not moved to modify the stay with respect to its collateral, Capital Home Sales, LLC, believes that FCBT will shortly file a motion for relief from the automatic stay. With respect to Debtors Drake Rentals, LLC, and Emerald One, LLC, on May 6, 2011, the Court entered orders modifying the automatic stay effective May 31, 2011, so that TCF could recover and dispose of its Collateral. The Debtors state that as a result, they are unable to propose a feasible plan of reorganization, and have no assets which a Chapter 7 trustee could administer for the benefit of unsecured creditors. About Capital Home Portland, Oregon-based Capital Home Sales, LLC -- dba Falcon Financial, LLC; Kestral Financial, LLC; Emerald Financial, LLC; Teal Financial, LLC; Harrier Financial, LLC; Goshawk Financial, LLC; Heron Financial, LLC; Wigeon Financial, LLC; Kestral Onel, LLC; Kestral Rentals; Wigeon Rentals; and Goshawk Rentals -- started as a series of individual companies that performed sales and rental functions for particular manufactured home communities, which communities were often related affiliates of the Company. The Company conducts the foregoing business operation of purchasing, selling, leasing and financing homes. The Company filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 10-54387) on Dec. 8, 2010. Donna B. Wallace, Esq., and Joseph A Baldi, Esq., at Baldi Berg & Wallace, Ltd., in Chicago, serve as counsel. The Company estimated assets at $50 million to $100 million and debts at $10 million to $50 million. CARBON RESOURCES: Court OKs Substitute Counsel for M.J. Keefe ------------------------------------------------------------- The Hon. Robert H. Jacobvitz of the U.S. Bankruptcy Court for the District of New Mexico authorized Carbon Resources LLC to employ Philip J. Montoya and Daniel J. Behles as substitute counsel for M.J. Keefe of Gilpin & Keefe, PC. Messrs. Montoya and Behles, also substituted James M. LaGanke as its attorney of record to represent the Debtor in the Chapter 11 proceeding and related matters, and other matters as the Debtor may need legal advice or representation on. That Debtor is authorized to pay attorneys on a monthly basis, upon receipt of attorneys' billing statements and prior to the Court's determination of the allowability of attorneys compensation, 75% of billed fees and 100% of reimbursable costs, and 100% applicable gross receipts tax on fees and taxes that are paid. The Debtor may pay attorneys interim compensation at these hourly rates: Philip J. Montoya $200 Daniel J. Behles $250 Paralegals $90 To the best of the Debtor's knowledge, Messrs. Montoya and Behles are "disinterested persons" as that term is defined in Section 101(14) of the Bankruptcy Code. About Carbon Resources LLC Sandia Park, New Mexico-based Carbon Resources LLC filed for Chapter 11 bankruptcy protection (Bankr. N.M. Case No. 10-16104) on Dec. 10, 2010. M.J. Keefe, Esq., at Gilpin & Keefe, PC, and the law firm of James M. LaGanke P.L.L.C., serve as the Debtor's bankruptcy counsel. The Debtor estimated assets at $10 million to $50 million, and debts at $1 million to $10 million. CARBON RESOURCES: Files New Plan Disclosures After Denial --------------------------------------------------------- As reported in the TCR on July 1, 2011, Judge Robert H. Jacobvitz of the U.S. Bankruptcy Court for the District of Mexico denied approval of the disclosure statement explaining Carbon Resources, LLC's Plan of Reorganization. Creditor PCM Venture II, LLC, objected to the approval of the Disclosure Statement complaining that it is unequivocally deficient, it fails to provide "adequate information" as required by Section 1125 of the Bankruptcy Code, and it describes a plan of reorganization that is facially unconfirmable. The Court then ordered the Debtor to file and serve upon counsel for PCM Venture II, LLC, and the U.S. Trustee an amended disclosure statement on or before July 8, 2011. On July 10, 2011, Carbon Resources filed a disclosure statement describing the Debtor's Amended Plan filed on July 9, 2011. According to the Amended Disclosure Statement, the Debtor has two secured creditors and a general class of unsecured creditors. The Debtor's secured creditors are PCM Venture II, LLC, in an amount of $4,484,338 including interest accrued through the filing date, and Carbon County Treasurer in the amount of $784.71. Secured creditors PCM Ventures II, LLC and Carbon County Treasurer are unimpaired under the Plan. Holders of general unsecured claims will be paid 75% of their allowed claims on the Effective Date, and will be issued promissory notes for the remaining 25% payable one year after the Effective Date, bearing simple interest at the rate of 4% p.a. This class is impaired. Holders of unsecured claims of insiders will receive promissory notes on the Effective date for the full amount of their claim, payable one year after the Effective Date, bearing simple interest at 4% per year, with all principal and interest due at the end of the term. WRCC, LLC, the only equity holder, will retain its equity interest in Debtor. WRCC will receive an amount sufficient on the Effective date to help offset the capital gains and income tax liabilities of those parties that arise as a direct result of the realization of taxable gain on the sale of the assets. Payments and distributions under the Plan will be funded by the sale of the Debtor's coal mining interests to Delta Capital Coal Fund Pty Ltd (Optionee). The sales price is $25,000,000 and is to be paid in three payments over a period of two years. Optionee is to pay Debtor the cash sum of 7,000,000 ($500,000 from the Option Fee being held in escrow and $6,500,000 from Optionee) on the settlement date. Currently, the settlement date is no later than Nov. 1, 2011, which is 30 business days after the latest option exercise date. Future funding of promissory notes issued by Debtor to certain claimants will be from a $7,000,000 payment due on the first anniversary of the settlement date. At this point, all of Debtor's creditors, other than claims of insiders, will be paid in full. A third a final installment of $11,000,000 is due on the second anniversary of the settlement date. A copy of the Disclosure Statement for the Amended Plan is available at http://bankrupt.com/misc/carbonresources.DS.pdf About Carbon Resources LLC Sandia Park, New Mexico-based Carbon Resources LLC owns a leasehold interest in an approximately 5,060 acre coal lease near Scofield, Utah. The total lease amount is in several scattered parcels, the primary portion of which is approximately 3,420 contiguous acres which has been drilled and blocked for a coal mine. This lease comprises the principal asset of the Debtor. The Company filed for Chapter 11 bankruptcy protection (Bankr. N.M. Case No. 10-16104) on Dec. 10, 2010. Daniel J. Behles, Esq., at Moore, Berkson & Gandarilla, P.C., and Philip J. Montoya, Esq., with address at P.O. Box 159, Albuquerque, New Mexico, serve as the Debtor's bankruptcy counsel. In its schedules, the Debtor disclosed $22,210,696 in assets and $5,416,004 in liabilities. CARIBE MEDIA: Files Restructuring Plan Giving Lenders Equity ------------------------------------------------------------ Michael Bathon at Bloomberg News reports that Caribe Media Inc. filed a reorganization plan that would give control of the company to its lenders. Senior secured lenders, owed about $127 million, would get all of the reorganized company's equity and share in a $55 million exit loan, for a projected recovery of 79% to 95%, according to the plan. Subordinated noteholders owed about $58.5 million won't receive any recovery under the plan. About Caribe Media Caribe Media Inc. owns publication rights for certain print and Internet directories in the Dominican Republic and Puerto Rico. Caribe Media owns 60% of Axesa Servicios de Informacion, S. en C., a Yellow Pages publisher in Puerto Rico and the official publisher of all telephone directories for Puerto Rico Telephone Company, Inc., the largest local exchange carrier in Puerto Rico, and US$100% of Caribe Servicios de Informacion Dominicana, S.A., the sole directory publisher in the Dominican Republic with the exclusive right to publish under the brand of Codetel, the largest telecom operator in the Dominican Republic. Caribe Media is wholly owned by CII Acquisition Holding Inc. They are affiliates of Local Insight Media Holdings, Inc. Caribe Media and CII filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case Nos. 11-11387 and 11-11388) on May 3, 2011. Caribe Media is being represented by lawyers at Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP as bankruptcy counsel. Lawyers at Curtis, Mallet-Prevost, Colt & Mosle LLP serve as conflicts counsel. Local Insight Media is also a debtor in its own Chapter 11 pending in Delaware. Local Insight Media filed in 2010. It is also being represented by lawyers at Kirkland and Pachulski. CASA BELLA: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Casa Bella Development, LLC 2940 U.S. Highway 60 East Republic, MO 65738 Bankruptcy Case No.: 11-61795 Chapter 11 Petition Date: August 19, 2011 Court: United States Bankruptcy Court Western District of Missouri (Springfield) Judge: Arthur B. Federman Debtor's Counsel: David E. Schroeder, Esq. DAVID SCHROEDER LAW OFFICES, PC 1524 East Primrose St., Suite A Springfield, MO 65804-7915 Tel: (417) 890-1000 Fax: (417) 886-8563 E-mail: bk1@dschroederlaw.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Terry McKee, managing member. CATHOLIC CHURCH: Milw. Lease Decision Deadline Moved to Oct. 31 --------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Wisconsin has given the Archdiocese of Milwaukee until Oct. 31, 2011, to assume or reject an unexpired lease of nonresidential property. The extension is the second after the deadline was first extended to Aug. 2, 2011, from May 4, 2011. Before the Court entered its order, the Archdiocese certified that no objections or responses were filed as of Aug. 5, 2011. About the Archdiocese of Milwaukee The Diocese of Milwaukee was established on Nov. 28, 1843, and was elevated to an Archdiocese on Feb. 12, 1875, by Pope Pius IX. The region served by the Archdiocese consists of 4,758 square miles in southeast Wisconsin which includes counties Dodge, Fond du Lac, Kenosha, Milwaukee, Ozaukee, Racine, Sheboygan, Walworth, Washington and Waukesha. There are 657,519 registered Catholics in the Region. The Catholic Archdiocese of Milwaukee, in Wisconsin, filed for Chapter 11 bankruptcy protection (Bankr. E.D. Wisc. Case No. 11-20059) on Jan. 4, 2011, to address claims over sexual abuse by priests on minors. The Archdiocese became at least the eighth Roman Catholic diocese in the U.S. to file for bankruptcy to settle claims from current and former parishioners who say they were sexually molested by priests. Daryl L. Diesing, Esq., at Whyte Hirschboeck Dudek S.C., in Milwaukee, Wisconsin, serves as the Archdiocese's counsel. The Official Committee of Unsecured Creditors in the bankruptcy case has retained Pachulski Stang Ziehl & Jones LLP as its counsel, and Howard, Solochek & Weber, S.C., as its local counsel. The Archdiocese estimated assets and debts of $10 million to $50 million in its Chapter 11 petition. (Catholic Church Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) CATHOLIC CHURCH: Court OKs Deposition of Milwaukee Bishops ---------------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 case of the Archdiocese of Milwaukee and Jeff Anderson and Associates, P.A., on behalf of certain personal injury claimants, who had joined in the Committee's request, sought examinations of Bishop Richard Sklba, Former Archbishop Rembert Weakland, and Father Daniel Budzynski pursuant to Rule 2004 of the Federal Rules of Bankruptcy Procedure by September 16, 2011. The Committee and Mr. Anderson seek to preserve testimonies regarding the Archdiocese's liability for sexual abuse, the health of other potential witnesses regarding sexual abuse, and the identity of potential survivors of sexual abuse in the Archdiocese of Milwaukee. Former Archbishop Weakland Responds Subsequently, Archbishop Weakland tells the Court that he has already submitted to a deposition conducted by Mr. Anderson on June 5 and June 6, 2008, which lasted one and a half days. He notes that the deposition covered a wide range of topics related to the case, including questioning concerning Father Lawrence Murphy, a serial pedophile believed to have molested hundreds of deaf boys over decades. On behalf of Archbishop Weakland, James T. Murray, Jr., Esq., at Peterson Johnson & Murray S.C., in Milwaukee, Wisconsin, argues that permitting an oral examination to go forward at the present time would expose Former Archbishop Weakland to not only duplicate questioning, but to the prospect of additional requests for oral examinations on behalf of claimants who have not yet appeared, since the bar date is not until February 1, 2012. "There is no good reason to conduct his oral examination now, at least insofar as this bankruptcy proceeding is concerned," Mr. Murray reiterates. Accordingly, Former Archbishop Weakland asks that the request for his oral examination by September 16 be denied. Former Bishop Sklba Conveys Concerns In a letter addressed to the Court, Patrick W. Brennan, Esq., at Crivello Carlson S.C., in Milwaukee, Wisconsin, on behalf of Bishop Sklba, says that his client has concerns about the timing and scope of a deposition. However, he notes that Bishop Sklba is in good health and will cooperate with all requests of his time in providing information the Court deems necessary. Mr. Brennan notes that Bishop Sklba asked that he not be deposed until after all pending appeals are concluded and mediation is completed in a case filed by Jane Doe 2 and Jane Doe 3 in the Circuit Court for the State of Wisconsin against the Archdiocese, Commercial Union Insurance Company n/k/a Onebeacon Insurance Company, and Diocese of Sioux Falls. Accordingly, Mr. Brennan asks the Court to take into account Bishop Sklba's request in the Circuit Court case, which mainly gives importance to his privacy and personal life as a retired bishop. A deposition of Bishop Sklba at this time appears to expose him to the prospect of other depositions at a later date due to the uncertain size of the claimant base and the multiple representation by single counsel for the abuse-survivor class, Mr. Brennan points out. Archdiocese Objects to Deposition " This Rule 2004 Motion amounts to an attempt by [the Committee and Mr. Anderson] to continue with discovery in the State Court Cases that are stayed, notwithstanding this Court's Order Denying the Deposition Motion or the fact that the proposed Examinations truly are not focused on the Debtor's financial affairs, the proper focus of Rule 2004 examinations," Daryl L. Diesing, Esq., at Whyte Hirschboeck Dudek S.C., in Milwaukee, Wisconsin, argues. Mr. Diesing asserts that the Rule 2004 Motion should be denied because (i) there is little risk of loss of evidence prior to the February 1, 2012 Abuse Survivor Bar Date, (ii) the testimony of the requested examinees will not advance the Chapter 11 case at this time, and (iii) it is exceedingly unlikely that the Examinations will result in disclosure of unknown abuse survivors. The Committee and Mr. Anderson give as their primary reason for filing the Rule 2004 Motion the "preservation of evidence relating to sexual abuse in the Archdiocese of Milwaukee" and claim that they have specific concern for the loss of the testimony of the Requested Examinees because they are more than 75 years old. "The Movants provide no authority for their position that it is proper to immediately take the Examinations to preserve evidence based exclusively on the age of an examinee," Mr. Diesing notes. He adds that "the Debtor already has an affirmative obligation to inform the Committee should it learn that the testimony of any individual may be imminently lost due to death or mental or physical impairment or health or disability." For this reason alone, the Rule 2004 Motion is completely unnecessary in light of the Court's direction that the Archdiocese must communicate with Bishop Sklba and Archbishop Weakland on a monthly basis, confirming with them that they have had no adverse health events, and immediately report to the Movants and the Court should the Debtor learn that the testimony of either may be imminently lost, Mr. Diesing asserts. Furthermore, the Archdiocese argues that while it is true that the scope of Rule 2004 examinations is generally broad, it is equally true that Rule 2004 examinations may not be used to annoy, embarrass or oppress the party being examined. He tells the Court that Mr. Anderson, previously widely publicized transcripts and videos of Archbishop Weakland's 2008 deposition in violation of an agreement with opposing counsel and applicable Wisconsin Rules of Professional Conduct. " Given the procedural infirmity of the Rule 2004 Motion and the absence of any legal grounds to conduct claim discovery at this time, it is fair to ask whether the real purpose of the Rule 2004 Motion is not to preserve evidence, but rather to embarrass the Debtor," Mr. Diesing says. Jeff Anderson Responds "In each of its filings the [Archdiocese] appears intent on attempting to make these proceedings about Jeff Anderson and his firm rather than focusing on the merits of any of the disputes. The ADOM's latest attempt is not only unfounded but it is also highly offensive," Mr. Anderson contends. There was no agreement to keep Archbishop Weakland's deposition confidential, Mr. Anderson argues in response to the Archdiocese's statement regarding the posting of transcripts and videos of Archbishop Weakland's 2008 deposition. R. Elliott Answers Archdiocese Robert L. Elliott, Esq., in Milwaukee, Wisconsin, counsel for certain victim unsecured creditors responds to the Archdiocese's Objection. In his response, Mr. Elliott points out that the Debtor will itself interview Bishop Sklba and Archbishop Weakland and ask whether they know the names of any abuse survivors not already identified. For this reason, the request of document production will be of no use in uncovering additional unknown abuse survivors, Mr. Elliott says. He explains that allowing the Archdiocese to conduct the interview alone only offers solace to the Court and to parties- in-interest only if it is believed that "the fox will diligently guard the hen house." He asserts that the only true way to secure a complete answer to the moving parties' necessary inquiries is to allow the moving parties to make those inquiries of the Archdiocese, Bishop Sklba and Archbishop Weakland under oath. The Archdiocese pointed out that the Committee and Mr. Anderson, while claiming that it is critical to preserve evidence, do not request an examination of any abuse survivors, many of whom may actually be in poor health. In response, Mr. Elliott points out that the risk of not preserving the evidence so as not to be able to present it later is only to the Committee and Mr. Anderson. "It would only work to the Debtor's benefit, and to the Movants' detriment if the Movants failed to preserve such evidence and not have it available for use in subsequent proceedings," Mr. Elliott says. "That is the risk that the Movants are willing to accept." However, he tells the Court that the Committee and Mr. Anderson are not willing to accept that the evidence they do not control, like the evidence from the Requested Examinees and the documents from the Archdiocese, will be preserved by the Archdiocese and available for the Committee's and Mr. Anderson's use at a later date. For these reasons, he asks the Court to grant the Rule 2004 Motion. Committee and Mr. Anderson Answer Archdiocese's Objections "The Debtor's Objection levies a disturbing and wrongheaded attack against the Committee, which the Committee must confront head on before addressing issues specific to the Motion," James I. Stang, Esq., at Pachulski Stang Ziehl & Jones LLP, in Los Angeles, California, says. In the Archdiocese's Objection, it baselessly contends that the Committee is doing Mr. Anderson's bidding by bringing the Rule 2004 Motion, Mr. Stang notes. He points out that in this way, the Archdiocese impugns the Committee's commission of its obligations in the bankruptcy case without any basis for doing so. Mr. Stang contends that the Committee and its counsel have an obligation to protect sex abuse survivors and other unsecured creditors in the bankruptcy case. He explains that the Committee filed the Rule 2004 Motion to do just that in an effort to preserve evidence relating to sexual abuse in the Archdiocese of Milwaukee. Mr. Stang relates that as much as the Archdiocese tries to distract and distance itself from reality, the bankruptcy case has everything to do with sex abuse. He notes that: * potential liability for sex abuse claims prompted the bankruptcy filing; and * resolution of sex abuse claims -- both in monetary and non- monetary ways -- is essential to the reorganization of the Debtor. "Thus, the Debtor's harangue that the Examinations are nothing more than Anderson's attempts to continue discovery in the state court cases is simply bombast," Mr. Stang argues. He notes that Mr. Anderson has been litigating sex abuse cases against the Archdiocese for several years and likely knows more about the cases and the Archdiocese's treatment of sex abuse claims and perpetrators than anyone. The Committee seeks to leverage the knowledge of sex abuse in the Archdiocese by having Mr. Anderson take the Examinations to preserve evidence that is critical to the bankruptcy case concerning who perpetrated abuse, what the Debtor knew about that abuse and when, and whether survivors of abuse who have not received notice of the February 1, 2012 abuse bar date in this case can be provided notice of that deadline, Mr. Stang asserts. In addition, Mr. Stang argues that the sex abuse issues are bankruptcy case issues and the Committee has an obligation to preserve information because it will be critical in these aspects of the case: -- the Committee intends that any plan of reorganization in the case will involve the recognition of sex abuse in the Archdiocese by the inclusion of non-monetary components of plan acknowledging the truth of the abuse; -- as part of funding a plan, at least partially through payments from the Debtor's insurers, Committee counsel's experience in other diocesan bankruptcy cases teaches that those insurers will require information regarding abuse in the Archdiocese and the Debtor's knowledge of that abuse; -- the information is important to preserve in the event that any party in interest objects to claims, particularly on a statute of limitations ground that will require evidence of what the Debtor knew about sex abuse and when. Mr. Anderson's involvement in taking these Examinations to preserve testimony concerning the identity of abusers, the identity of survivors, and the Archdiocese's knowledge about the abuse is a boon to the estate because Mr. Anderson is not employed in the bankruptcy case, Mr. Stang notes. Court Approves Rule 2004 Motion Subject to Certain Grounds At a hearing held on August 12, 2011, the Court granted the Rule 2004 Motion to examine Archbishop Weakland, Bishop Sklba, and Mr. Budzynski, but established certain ground rules in connection with the examinations. Depositions of the Deponents may be scheduled during the weeks of October 17, 2011, and October 24, 2011. The subject of the depositions are limited to: (1) who perpetrated sexual abuse in the Archdiocese of Milwaukee; (2) what the Debtor knew about that abuse and when; and (3) whether there are additional survivors of that abuse who have not received notice of the February 1, 2012 claims bar date in this case. These are the only depositions of the Deponents on these three subjects that the Committee, Mr. Anderson's clients, Mr. Elliott's clients and Attorney Smith's clients will be permitted to conduct. Depositions are limited to a total of seven hours for each Deponent and may be held over two days. The parties will notify the Court of the dates and times of the depositions to ensure that the Court will be available to resolve any disputes. Depositions may be conducted by video, and the written transcripts will be filed with the Court and made accessible only to parties to the case. The Court instructed that neither the Committee, Mr. Anderson, nor any of the other parties should disseminate the transcripts or videos without further order of the Court. In addition, the Court ordered to the Archdiocese to produce documents asked by the Committee. About the Archdiocese of Milwaukee The Diocese of Milwaukee was established on Nov. 28, 1843, and was elevated to an Archdiocese on Feb. 12, 1875, by Pope Pius IX. The region served by the Archdiocese consists of 4,758 square miles in southeast Wisconsin which includes counties Dodge, Fond du Lac, Kenosha, Milwaukee, Ozaukee, Racine, Sheboygan, Walworth, Washington and Waukesha. There are 657,519 registered Catholics in the Region. The Catholic Archdiocese of Milwaukee, in Wisconsin, filed for Chapter 11 bankruptcy protection (Bankr. E.D. Wisc. Case No. 11-20059) on Jan. 4, 2011, to address claims over sexual abuse by priests on minors. The Archdiocese became at least the eighth Roman Catholic diocese in the U.S. to file for bankruptcy to settle claims from current and former parishioners who say they were sexually molested by priests. Daryl L. Diesing, Esq., at Whyte Hirschboeck Dudek S.C., in Milwaukee, Wisconsin, serves as the Archdiocese's counsel. The Official Committee of Unsecured Creditors in the bankruptcy case has retained Pachulski Stang Ziehl & Jones LLP as its counsel, and Howard, Solochek & Weber, S.C., as its local counsel. The Archdiocese estimated assets and debts of $10 million to $50 million in its Chapter 11 petition. (Catholic Church Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) CATHOLIC CHURCH: Vatican Releases Documents in Sex Abuse Case ------------------------------------------------------------- Pursuant to a federal court ruling in Portland in a sex abuse case, the Vatican released documents numbering thousands of pages in support of its contention that the priest accused in the case is not its employee, The Associated Press reports. The papers are to be used by prosecution to help prove that Rev. Andrew Ronan, the accused, is an employee of the Vatican. If proven that he is an employee, a case against the Holy See can go forward, AP says. The material released consists of: -- More than 1,800 pages of documents, most in the public domain, in response to requests for information about how priests are trained and governed. -- Legal arguments in which the Vatican reiterates its contention that Rev. Ronan was not an employee of the Vatican and objects to questions raised by the plaintiffs on a number of grounds that also include First Amendment rights. The lawsuit was filed by Jeff Anderson on behalf of an unnamed plaintiff against Mr. Ronan, the Vatican, Mr. Ronan's religious order, and the Archdiocese's of Chicago and Portland. It is the first time in history that the Vatican released papers in connection with a sexual abuse case. About Archdiocese of Portland The Archdiocese of Portland in Oregon filed for Chapter 11 protection (Bankr. Ore. Case No. 04-37154) on July 6, 2004. Thomas W. Stilley, Esq., and William N. Stiles, Esq., at Sussman Shank LLP, represent the Portland Archdiocese in its restructuring efforts. Albert N. Kennedy, Esq., at Tonkon Torp, LLP, represents the Official Tort Claimants Committee in Portland, and scores of abuse victims are represented by other lawyers. David A. Foraker serves as the Future Claimants Representative appointed in the Archdiocese of Portland's Chapter 11 case. In its Schedules of Assets and Liabilities filed with the Court on July 30, 2004, the Portland Archdiocese reports $19,251,558 in assets and $373,015,566 in liabilities. The Court approved the Debtor's disclosure statement explaining its Second Amended Joint Plan of Reorganization on February 27, 2007. (Catholic Church Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). CAVIATA ATTACHED: Wants Until Aug. 30 to File Schedules ------------------------------------------------------- Caviata Attached Homes, LLC, asks the U.S. Bankruptcy Court for the District of Nevada to extend until Aug. 30, 2011, the time to file its schedules of assets and liabilities and statement of financial affairs. The Debtor relates that it has commenced the gathering of information to complete the required financial disclosures, and it needs additional time to adequately prepare accurate statements and schedules. Reno, Nevada-based Caviata Attached Homes LLC 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. CAVIATA ATTACHED: Seeks to Hire Alan R. Smith as Counsel -------------------------------------------------------- Caviata Attached Homes, LLC, seeks authority from the U.S. Bankruptcy Court for the District of Nevada to employ the Law Offices of Alan R. Smith as its attorneys of record. The Debtor relates that it was previously represented by the Firm in a Chapter 11 case that concluded by confirmation on Apr. 12, 2010. As counsel, the firm has agreed to: * render legal advice with respect to the powers and duties of the Debtor that continues to operate its business and manage its properties as debtor-in-possession; * negotiate, prepare, and file a plan or plans of reorganization and disclosure statements in connection with the plans, and otherwise promote the financial rehabilitation of the Debtor; * take all necessary action to protect and preserve the Debtor's estate; * prepare, on behalf of the Debtor, all necessary applications, motions, answers, orders, reports and papers in connection with the administration of the Debtor's estate, and appear on behalf of the Debtor at all Court hearings in connection with the Debtor's case; * render legal advice and perform general legal services in connection with the Services; and * perform all other necessary legal services in connection with the Chapter 11 case. The Debtor has agreed to compensate the firm in accordance with its customary hourly rates: Alan R. Smith $500 John J. Gezelin, contract attorney $350 Peggy L. Turk, paraprofessional $205 Other paraprofessional services $95 - $115 The Debtor paid a $10,000 advance retainer to the firm for the commencement of the Chapter 11 case. According to the Debtor, the source of these funds was a capital contribution from one of the owners, Pacific West Capital Group, LLC. The firm has not been retained for prepetition services other than pre-bankruptcy and bankruptcy-related services. The Debtor believes that the firm does not hold or represent an interest adverse to the estate and that the members are disinterested persons as defined in Section 101(14) of the Bankruptcy Code. The firm can be contacted at: Alan R. Smith, Esq. LAW OFFICES OF ALAN R. SMITH 505 Ridge Street Reno, Nevada 89501 Tel: (775) 786-4579 Fax: (775) 786-3066 E-mail: mail@asmithlaw.com A hearing to consider the application is set for Sept. 23, 2011. About Caviata Attached Homes Reno, Nevada-based Caviata Attached Homes LLC 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. CENTER FOR SYSTEMS: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Center for Systems Management, Inc. 3057 Nutley Street, Suite 822 Fairfax, VA 22031 Bankruptcy Case No.: 11-16101 Chapter 11 Petition Date: August 18, 2011 Court: United States Bankruptcy Court Eastern District of Virginia (Alexandria) Judge: Robert G. Mayer Debtor's Counsel: Thomas F. DeCaro, Jr., Esq. DECARO & HOWELL, P.C. 14406 Old Mill Rd.,#201 Upper Marlboro, MD 20772 Tel: (301) 464-1400 E-mail: tfd@erols.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/vaeb11-16101.pdf The petition was signed by Kenneth Mosteller, president. CENTRAL FALLS, R.I.: Receiver Fires 2 Dept. Heads, Solicitor ------------------------------------------------------------ W. Zachary Malinowski at projo.com reports that Robert G. Flanders Jr., the state-appointed receiver for the city of Central Falls, Rhode Island, has dropped two department directors and a city solicitor in his continuing effort to slash city expenses. According to projo.com, the layoffs of Kenneth J. Slowik, director of code enforcement; Kenneth A. Vaudreuil, recycling coordinator; and Matthew T. Oliverio, assistant city solicitor, will save the city about $165,000 this year. projo.com relates that the layoffs are the first significant personnel cuts since bankruptcy proceedings began earlier this month. In June, projo.com recounts, Mr. Flanders closed down the Central Falls Free Public Library and the Ralph J. Holden Community Center, dropping 12 city employees -- 6 full and 6 part- time -- from the city payroll. Those cuts are expected to save the city about $400,000. Staffed by volunteers, the library has now reopened with reduced hours by the trust that owns the building, according to projo.com. About Central Falls Central Falls is a city in Providence County, Rhode Island. The population was 18,928 at the 2000 census. Central Falls is the smallest and most densely populated city in Rhode Island. Central Falls sought bankruptcy protection under Chapter 9 of the U.S. Bankruptcy Code (Bankr. D. R.I. Case No. 11-13105) on Aug. 1, 2011. The Chapter 9 filing was made after former Rhode Island Supreme Court Judge Robert Flanders, who serves as state-appointed receiver for the city, was unable to negotiate significant concessions from unions representing police officers, firefighters and other city workers. The city grappled with an $80 million unfunded pension and retiree health benefit liability that is nearly quadruple its annual budget of $17 million. Judge Robert Flanders succeeded the role from retired Superior Court Associate Justice Mark A. Pfeiffer, who was appointed in July 2010. The Central Falls receivership, the state's first, has left the mayor and council without any power to govern. Judge Frank Bailey presides over the Chapter 9 case. Theodore Orson, Esq., at Orson and Brusini Ltd., serves as bankruptcy counsel to the receiver. CHEMTURA CORP: Settles Coal Tar Pitch Claims for $4.7 Million -------------------------------------------------------------- Pete Brush at Bankruptcy Law360 reports that formerly bankrupt Chemtura Corp. on Tuesday reached a $4.7 million settlement in New York with 37 Chapter 11 claimants who said they were injured by exposure to coal tar pitch, a hazardous residue produced during the distillation of coal tar. Law360 relates that U.S. Bankruptcy Judge Robert E. Gerber signed off on the deal, discharging Chemtura from contribution claims but preserving the rights of the claimants to pursue other defendants in coal tar pitch suits pending in the Court of Common Pleas of Allegheny County, Pa. About Chemtura Corp. Based in Middlebury, Connecticut, Chemtura Corporation -- http://www.chemtura.com/-- with 2008 sales of $3.5 billion, is a global manufacturer and marketer of specialty chemicals, crop protection products, and pool, spa and home care products. Chemtura Corporation and 26 of its U.S. affiliates filed voluntary petitions for relief under Chapter 11 (Bankr. S.D.N.Y. Case No. 09-11233) on March 18, 2009. The Debtors disclosed total assets of $3.06 billion and total debts of $1.02 billion as of the Chapter 11 filing. Chemtura completed its financial restructuring and emerged from protection under Chapter 11 in November 2010. In connection with the emergence, reorganized Chemtura is now listed on the New York Stock Exchange under the ticker "CHMT". M. Natasha Labovitz, Esq., at Kirkland & Ellis LLP, in New York, served as bankruptcy counsel for the Debtors. Wolfblock LLP was the Debtors' special counsel. The Debtors' auditors and accountant were KPMG LLP; their investment bankers are Lazard Freres & Co.; their strategic communications advisors were Joele Frank, Wilkinson Brimmer Katcher; their business advisors were Alvarez & Marsal LLC and Ray Dombrowski served as their chief restructuring officer; and their claims and noticing agent was Kurtzman Carson Consultants LLC. The Official Committee of Equity Security Holders tapped Jay Goffman, Esq., and David Turetsky, Esq., at Skadden Arps Slate Meagher & Flom LLP, in New York, as counsel. the Official Committee of Unsecured Creditors retained Daniel H. Golden, Esq., Philip C. Dublin, Esq., and Meredith A. Lahaie, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, as counsel. CIE COOPERATIVE: Trustee's Suit Over T-Shirts Goes to Trial ----------------------------------------------------------- The lawsuit commenced by Richard E. Barber, as trustee of the estate of Central Illinois Energy Cooperative, against Camille's of Canton, Inc., will proceed to trial after Chief Bankruptcy Judge Thomas L. Perkins denied cross motions for summary judgment, saying a genuine issue of material fact exists. The suit seeks to recover $4,189.99 paid for the purchase of 195 custom-made shirts with the logo "Central Illinois Energy" with the words "Pure energy. Homegrown" printed below, which were worn by Central Illinois Energy employees. The shirts were paid for by CIE Cooperative. The Trustee asserts that the payment constitutes a fraudulent transfer. The case is RICHARD E. BARBER, not individually, but as trustee for the estate of Central Illinois Energy Cooperative, v. CAMILLE'S OF CANTON, INC., an Illinois corporation, Adv. Proc. No. 10-8017 (Bankr. C.D. Ill.). A copy of Judge Perkins' Aug. 22, 2011 Opinion is available at http://is.gd/0x9kLUfrom Leagle.com. Central Illinois Energy Cooperative owned a controlling interest in Central Illinois Holding Company, LLC, the holding company for Central Illinois Energy, LLC, the entity formed in 2005 for the purpose of constructing, owning and operating an ethanol production facility and waste-coal fired power generating facility. CIE Cooperative, an agricultural cooperative formed under Illinois law, comprised of farmers in the Central Illinois area, was formed to own and operate a grain handling facility and to sell its members' corn to CIE for processing into ethanol and other byproducts. After the construction project encountered financial difficulties, CIE Cooperative transferred substantially all of its assets, including the grain handling facility and numerous corn delivery contracts, to Green Lion Bio-Fuels, LLC, on June 12, 2007. Delays and cost overruns continued to plague the project and the general contractor ceased working on the ethanol plant in November 2007. CIE filed a Chapter 11 petition Dec. 13, 2007, and an order for conversion to Chapter 7 was entered Aug. 4, 2008. Pursuant to sections 363(b) and (f) of the Bankruptcy Code, substantially all of CIE'S assets were sold to New CIE Energy Opco, LLC, by order entered April 24, 2008. A Chapter 11 involuntary petition was filed against CIE Cooperative (Bankr. C.D. Ill. Case No. 09-81409) on May 1, 2009. HWS Energy Partners, LLC, the petitioning creditor, was represented by Douglas S. Slayton, Esq. -- dslayton@hwsenergy.com CIE Cooperative did not file an answer and an order for relief was entered on June 18, 2009. The case was converted to Chapter 7 on July 16, 2009, on the motion of the U.S. Trustee. Richard E. Barber was appointed as Chapter 7 trustee. CIMA, L.L.C.: Case Summary & 6 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: CIMA, L.L.C. 1637 S.E. 12th Court Fort Lauderdale, FL 33316 Bankruptcy Case No.: 11-33279 Chapter 11 Petition Date: August 22, 2011 Court: U.S. Bankruptcy Court Southern District of Florida (Fort Lauderdale) Judge: Raymond B. Ray Debtor's Counsel: Leslie Gern Cloyd, Esq. BERGER SINGERMAN, P.A. 350 E. Las Olas Boulevard, #1000 Ft. Lauderdale, FL 33301 Tel: (954) 525-9900 Fax: (954) 523-2872 E-mail: lcloyd@bergersingerman.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $1,000,001 to $10,000,000 The petition was signed by J. Marion Uter, manager. Debtor's List of six Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Alford, Clause & McDonald, LLC Assignment $775,000 One St. Louis Centre, Suite 3100 Mobile, AL 36602 Shelby Concrete Company, Inc. Assignment $158,480 c/o Mark P. Williams, Esq. Norman, Wood, Kendrick & Turner 505 Twentieth Street North Birmingham, AL 35203 Stuart C. Irby Company Assignment $115,169 c/o Mark P. Williams, Esq. Norman, Wood, Kendrick & Turner 505 Twentieth Street North Birmingham, AL 35203 Beard Equipment Company, Inc. Assignment $49,710 Cowin Equipment Company, Inc. Assignment $28,000 Morgan, Michael G. Assignment $21,350 CLARK THOMAS: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Clark, Thomas & Winters, P.C. fka Clark, Thomas, Winters & Newton, P.C. P.O. Box 1148 Austin, TX 78767 Bankruptcy Case No.: 11-12059 Chapter 11 Petition Date: August 19, 2011 Court: United States Bankruptcy Court Western District of Texas (Austin) Judge: Craig A. Gargotta Debtor's Counsel: Joseph D. Martinec, Esq. MARTINEC, WINN, VICKERS & MCELROY, P.C. 600 Congress Avenue, Suite 500 Austin, TX 78701 Tel: (512) 476-0750 Fax: (512) 476-0753 E-mail: martinec@mwvmlaw.com Scheduled Assets: $4,257,185 Scheduled Debts: $26,395,512 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txwb11-12059.pdf The petition was signed by L. Parker McNeill, authorized representative. CLAYTON COUNTY: S&P Lowers Rating on Housing Bonds to 'B-' ---------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on Clayton County Housing Authority, Ga.'s (Williamsburg South Apartments Project) multifamily housing bonds series 2002A to 'B-' from 'BB'. The outlook is negative. "The rating actions are based on our view of the project's reliance on short-term market rate investments," said Standard & Poor's credit analyst Renee J. Berson. The rating reflects S&P's view of: Revenues from mortgage debt service payments and investment earnings are insufficient to pay full and timely debt service on the bonds plus fees until maturity; Debt service coverage is projected to fall below investment- grade levels beyond April 2015; and Asset/liability parity is projected to fall below 100% in 2021. Credit strengths in the issue include S&P's opinion of: Investments held in First American Treasury Obligations Fund Class D money market fund (AAAm); and "The high credit quality of the Fannie Mae pass-thru certificate, which we consider to be 'AAA+' eligible," S&P said. Standard & Poor's has analyzed updated financial information based on its current stressed reinvestment rate assumptions for all scenarios as set forth in the criteria for certain federal government-enhanced housing transactions. "We believe the bonds are unable to meet all bond costs from transaction revenues until maturity, assuming these reinvestment earnings," S&P related. CLEAR CREEK: Seeks to Tap Allen Matkins as Reorganization Counsel ----------------------------------------------------------------- Clear Creek Ranch II, LLC, and Clear Creek at Tahoe, LLC, seek authority from the U.S. Bankruptcy Court for the District of Nevada to employ Allen Matkins Leck Gamble Mallory & Natsis LLP as their general reorganization counsel, effective as of July 18, 2011. The firm's services will include: * Advise the Debtors generally regarding matters of bankruptcy law; * Advise the Debtors generally in the management of their businesses; * Represent the Debtors in adversary proceedings, contested matters, and administrative hearings, and in any actions where the rights of the Debtors or their estates may be litigated or affected; * Advise the Debtors concerning the rights and remedies of their estates, including matters relating to their assets with to the claims of creditors; * Conduct examinations of witnesses, claimants, or adverse parties as the cases may require; * Prepare and assist in the preparation of reports, accounts, applications, motions, and orders; * Represent the Debtors in negotiations with creditors, members, affiliated entities, governmental entities, and other parties-in-interest; * Assist the Debtors in the formulation, preparation, and confirmation of their plan of reorganization; and * Advise the Debtors regarding the numerous other legal questions and problems, which may arise in a Chapter 11 case. The Debtors relate that certain members of CCT, including the A. & C. Horn Trust, the James S. Taylor and Denise G. Taylor Living Trust, and the Leo Hanly Revocable Trust have agreed to contribute necessary funds. The firm was a creditor of the Debtors until shortly before the Petition Date. On July 15, 2011, The A. and C. Horn Trust -- a member of CCT -- agreed to pay the Firm $295,000 to acquire the Firm's approximate $213,000 claim against CCR II, its approximate $4,000 claim against CCT, and its claims against other affiliated companies. No funds of the Debtors were involved in this transaction, and there was no effect on the Debtors' financial situation other than a change in the identity of one of their creditors. The A. and C. Horn Trust may assert the claims against the Debtors as general unsecured claims. If the Debtors require legal assistance with respect to those claims, local counsel Amy Tirre, and not the Firm, will represent the Debtors, the Debtors tell the Court. The Debtors further disclose that before the Petition Date, the firm received an "Initial Contribution" of $700,000 from the Horn Trust. The Initial Contribution was made for the benefit of both Debtors. A portion of the Initial Contribution was used to pay the Firm's prepetition fees and costs. On and just before the Petition Date, the Firm had rendered professional services to the Debtors and incurred related costs in the amount of $47,905. The Firm paid itself and reduced the credit for the Initial Contribution accordingly. The Debtors were jointly and severally liable for this amount, so each is now indebted to The Horn Trust for that amount, although the total liability between them does not exceed that amount. The balance of the Initial Contribution, $652,095, was deposited into the Firm's noninterest-bearing client trust account. As a portion of the Initial Contribution -- or subsequent contributions -- is paid to the Firm as compensation and reimbursement for services to the Debtors, the Contributors' loan to the Debtors will increase accordingly. Thus, to the extent that this arrangement technically constitutes a postpetition loan from the Contributors to the Debtors, the Debtors ask for approval of the loan under Section 364 of the Bankruptcy Code. According to the Debtors, the Contributors have agreed to fund not just the Initial Contribution but all amounts needed to pay the fees and expenses of the Firm, local counsel to the Debtors, and any other Debtors' professionals. The Contributors have agreed that if the balance in the Firm's trust account falls below $250,000, they will make an additional contribution to restore the balance to $750,000. The Debtors will pay the firm according to its standard billing rates and reimburse the firm for reasonable expenses. The current hourly rates of lawyers expected to be primarily involved in this case are: Vincent M. Coscino $680 Thomas E. Gibbs $620 Robert R. Barnes $620 Michael S. Greger $620 Paul D. O'Connor $610 Brian Bauer $415 Richard M. Dinets $305 The Debtors believe that the fFirm does not hold or represent an interest adverse to the bankruptcy estate and that it is a disinterested person. About Clear Creek Ranch II Minden, Nevada-based Clear Creek Ranch II LLC owns a 530.74-acre undeveloped residential subdivision located within the project known as Clear Creek. That project included a world-class golf course, the residential subdivision around the golf course, a lake house on Lake Tahoe and a fly fishing ranch along the West Walker River. The co-developers and joint venturers of the Project are CCR II's affiliate, Clear Creek at Tahoe LLC, and entities affiliated with Nevada businessman John Serpa, Sr., and his sons. Clear Creek Ranch II and Clear Creek at Tahoe filed separate Chapter 11 bankruptcy petitions (Bankr. D. Nev. Case Nos. 11-52302 and 11-52303) on July 18, 2011. Judge Bruce T. Beesley presides over the cases. The Debtors' counsel can be reached at: Thomas E. Gibbs, Esq. Vincent M. Coscino, Esq. Brian R. Bauer, Esq. ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS LLP 1900 Main Street, Fifth Floor Irvine, CA 92614-7321 Tel: (949) 553-1313 Fax: (949) 553-8354 E-mail: tgibbs@allenmatkins.com vcoscino@allenmatkins.com bbauer@allenmatkins.com The Law Offices of Amy N. Tirre serves as the Debtors' local counsel. In its petition, Clear Creek Ranch II estimated assets and debts of $10 million to $50 million. The petitions were signed by James S. Taylor, the Trustee. CLEAR CREEK: Seeks to Hire Amy N. Tirre as Local Counsel -------------------------------------------------------- Clear Creek Ranch II, LLC and Clear Creek at Tahoe, LLC ask the U.S. Bankruptcy Court for the District of Nevada to employ the Law Offices of Amy N. Tirre, APC as their local reorganization counsel, effective as of July 18, 2011. As local counsel, the firm will: * advise the Debtors generally regarding matters of bankruptcy law; * advise the Debtors generally in the management of their businesses; * represent the Debtors in adversary proceedings, contested matters, and administrative hearings, and in any actions where the rights of the Debtors or their estates may be litigated or affected; * advise the Debtors concerning the rights and remedies of their estates, including matters relating to their assets with respect to the claims of creditors; * conduct examinations of witnesses, claimants, or adverse parties as the cases may required; * prepare and assist in the preparation of reports, accounts, applications, motions, and orders; * represent the Debtors in negotiations with creditors, members, affiliated entities, governmental entities, and other parties-in-interest; * assist the Debtors in the formulation, preparation, and confirmation of their plan of reorganization; and * advise the Debtors regarding the numerous other legal questions and problems, which may arise in a Chapter 11 case. The Debtors relate that certain members of CCT, including the A. & C. Horn Trust, the James S. Taylor and Denise G. Taylor Living Trust, and the Leo Hanly Revocable Trust have agreed to contribute necessary funds. Before the Petition Date, the firm received an "Initial Contribution" from the Horn Trust of $50,000. The Initial Contribution was made for the benefit of both Debtors. A portion of the Initial Contribution was used to pay the Firm's prepetition fees and costs. On and just before the Petition Date, the firm had rendered professional services to the Debtors and incurred related costs in the amount of $7,715, the Debtors inform the Court. The balance of the Initial Contribution, $42,285, was deposited into the firm's non-interest-bearing client trust account. As a portion of the Initial Contribution -- or subsequent Contributions -- is paid to the Firm as compensation and reimbursement for services to the Debtors, the Contributors' loan to the Debtors will increase accordingly. Thus, to the extent that this arrangement technically constitutes a postpetition loan from the Contributors to the Debtors, the Debtors ask for approval of the loan under Section 364 of the Bankruptcy Code. The firm paid itself and reduced the credit for the Initial Contribution accordingly. The Debtors were jointly and severally liable for this amount, so each is now indebted to The Horn Trust for that amount, although the total liability between them does not exceed that amount. According to the Debtors, the Contributors have agreed to fund not just the Initial Contribution but all amounts needed to pay the fees and expenses of the Firm, local counsel to the Debtors, and any other Debtors' professionals. The Contributors have agreed that if the balance in the Firm's trust account falls below $10,000, they will make an additional contribution to restore the balance to $50,000. The Firm will be paid its standard hourly rates and reimbursed of reasonable expenses. The hourly rates of the attorneys initially assigned to this matter are: Amy N. Tirre $325 Paralegal $125 The Debtors believe that the Firm does not hold or represent an interest adverse to the bankruptcy estate and that it is a disinterested person. About Clear Creek Ranch II Minden, Nevada-based Clear Creek Ranch II LLC owns a 530.74-acre undeveloped residential subdivision located within the project known as Clear Creek. That project included a world-class golf course, the residential subdivision around the golf course, a lake house on Lake Tahoe and a fly fishing ranch along the West Walker River. The co-developers and joint venturers of the Project are CCR II's affiliate, Clear Creek at Tahoe LLC, and entities affiliated with Nevada businessman John Serpa, Sr., and his sons. Clear Creek Ranch II and Clear Creek at Tahoe filed separate Chapter 11 bankruptcy petitions (Bankr. D. Nev. Case Nos. 11-52302 and 11-52303) on July 18, 2011. Judge Bruce T. Beesley presides over the cases. The Debtors are represented by: Thomas E. Gibbs, Esq. Vincent M. Coscino, Esq. Brian R. Bauer, Esq. ALLEN MATKINS LECK GAMBLE MALLORY & NATSIS LLP 1900 Main Street, Fifth Floor Irvine, CA 92614-7321 Tel: (949) 553-1313 Fax: (949) 553-8354 E-mail: tgibbs@allenmatkins.com vcoscino@allenmatkins.com bbauer@allenmatkins.com In its petition, Clear Creek Ranch II estimated assets and debts of $10 million to $50 million. The petitions were signed by James S. Taylor, the Trustee. COLLEGE CORNER: Case Summary & 14 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: College Corner, L.L.C. 530 Sundown Drive Independence, MO 64054 Bankruptcy Case No.: 11-43879 Chapter 11 Petition Date: August 18, 2011 Court: United States Bankruptcy Court Western District of Missouri (Kansas City) Judge: Arthur B. Federman Debtor's Counsel: Bryan Bacon, Esq. VAN MATRE HARRISON VOLKERT & HOLLIS 1103 E Broadway Columbia, MO 65201 Tel: (573) 874-7777 Fax: (573) 875-0017 E-mail: bryan@vanmatre.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 14 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mowb11-43879.pdf The petition was signed by Paxton A. Schneider, manager. COINSTAR INC: S&P Cuts Rating on $200-Mil. Senior Notes to 'BB-' ---------------------------------------------------------------- Standard & Poor's Ratings Services revised the issue-level ratings on Bellevue, Wash.-based Coinstar Inc.'s $200 million 4% convertible senior notes to 'BB-' from 'BB+'. "At the same time, we revised our recovery rating to '6' from '4'. The '6' recovery rating indicates that lenders should receive a negligible (0%-10%) recovery of principal in the event of a default," S&P related. "The change in our recovery analysis reflects our revised expectation of the recovery prospects because of the addition of $225 million in secured debt following Coinstar's recent bank facility refinancing," S&P stated. Coinstar's capital structure is: a $625 million senior credit facility (unrated) due in 2016 (which includes a $450 million revolving credit facility and a $175 million term loan A), and $200 million convertible senior notes due 2014. "Our 'BB+' corporate credit rating and stable outlook on Coinstar remain unchanged," S&P related. Ratings List Coinstar Inc. Corporate credit rating BB+/Stable/-- Downgraded; Recovery Rating Revised To From Coinstar Inc. Senior unsecured BB- BB+ Recovery rating 6 4 COMMANDER PREMIER: Joel Hartstone Pleads for Public Support ----------------------------------------------------------- Scott Moyers at the Southeast Missourian reports that Joel Hartstone of StoneGate Capital Group made an "open letter to the citizens of Cape Girardeau" pleading for public support. A full- text copy of the letter is available for free at: http://bankrupt.com/misc/Open_Letter.pdf According to the Southeast Missourian, Cape Girardeau city government was asking a bankruptcy judge to allow it to evict Commander Premier Aircraft Corp. from city-owned property at the airport. The report says it was the latest development in the long story of Commander, which recently filed for bankruptcy, and Cape Girardeau, Missouri. Commander was notified in writing Feb. 15 that it had defaulted on rental payments that had been accruing since the last payment was made in December 2007 for a hangar facility at the airport. The city has said Commander owes the city about $1.2 million. Joel Hartstone is a former president of Commander, who in 2008 was tapped to find financing for a purchase of the company. The report says StoneGate and its principals are major stockholders and creditors of Commander Premier, which has filed for Chapter 11 bankruptcy protection. Based in Tyler, Texas, Commander Premier Aircraft Corporation filed for Chapter 11 bankruptcy protection (Bankr. E.D. Tex. Case No. 11-60548) on June 16, 2011. Jason R. Searcy, Esq., at Searcy & Searcy P.C. Represents the Debtor. The Debtor estimated assets of less than $50,000, and debts between $1 million and $10 million. CONFORCE INTERNATIONAL: Incurs US$661,500 Net Loss in June Qtr. --------------------------------------------------------------- Conforce International, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of US$661,547 for the three months ended June 30, 2011, compared with a net loss of US$293,015 for the same period a year ago. The Company reported a net loss of $2.1 million on $305,824 of revenue for the fiscal year ended March 31, 2011, compared with a net loss of $729,903 on $920,937 on revenue for the fiscal year ended March 31, 2010. The Company's balance sheet at June 30, 2011, showed US$8.34 million in total assets, US$2.38 million in total liabilities and US$5.96 million in total stockholders' equity. BDO Canada LLP expressed substantial doubt about ability to continue as a going concern. The independent auditors noted that the Company has incurred recurring losses. A full-text copy of the Form 10-Q is available for free at: http://is.gd/kBoNwD About Conforce International Headquartered in Concord, Ontario, Canada, Conforce International, Inc., has been in the shipping container business repairing, selling or storing containers for over 25 years. The Company has been engaged in the research and development of a polymer based composite shipping container and highway trailer flooring product. As a result, the Company has developed EKO-FLOR. The Company is now outfitting its new manufacturing facility in Peru, Indiana for the production of EKO-FLOR for the North American highway trailer market. CORUS BANKSHARES: Files Plan Supplement --------------------------------------- BankruptcyData.com reports that Corus Bankshares filed with the U.S. Bankruptcy Court a Plan Supplement for its Second Amended Chapter 11 Plan. BData says the supplement contains these documents: * Charter of the Reorganized Debtor; * By-Laws of the Reorganized Debtor; * List of Rejected Executory Contracts and Unexpired Leases; * List of Retained Causes of action; * Terms of New Series A Common Stock; * Terms of Equity Security to be Issued in Connection with the Cash Election Entitlement; * Investment Guidelines for the Case Election Entitlement Segregated Account; * Identity of the Trustee of the Litigation Trust; * Identity of the Creditors' Designee; and * Correct of Erratum in the Disclosure Statement. About Corus Bankshares Chicago, Illinois-based Corus Bankshares, Inc., is a bank holding company. Its lone operating unit, Corus Bank, N.A., was closed on Sept. 11, 2009, by regulators, and the Federal Deposit Insurance Corporation was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Chicago-based MB Financial Bank, National Association, to assume all of the deposits of Corus Bank. Corus Bankshares sought Chapter 11 protection (Bankr. N.D. Ill. Case No. 10-26881) on June 15, 2010, disclosing $314,145,828 in assets and $532,938,418 in liabilities as of the Chapter 11 filing. Kirkland & Ellis LLP's James H.M. Sprayregen, Esq., David R. Seligman, Esq., and Jeffrey W. Gettleman, Esq., serve as the Debtor's bankruptcy counsel. Kinetic Advisors is the Company's restructuring advisor. Plante & Moran is the Company's auditor and accountant. Kilpatrick Stockton LLP's Todd Meyers, Esq., and Sameer Kapoor, Esq.; and Neal Gerber & Eisenberg LLP's Mark Berkoff, Esq., Deborah Gutfeld, Esq., and Nicholas M. Miller, Esq., represent the official committee of unsecured creditors. CROWN ASPHALT: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Crown Asphalt Ridge, LLC aka CAR, LLC Attn: Soung Joon Kim 1245 E Brickyard Road, Suite 110 Salt Lake City, UT 84111 Bankruptcy Case No.: 11-32264 Chapter 11 Petition Date: August 22, 2011 Court: U.S. Bankruptcy Court District of Utah (Salt Lake City) Judge: R. Kimball Mosier Debtor's Counsel: Steven J. McCardell, Esq. DURHAM JONES & PINEGAR 111 East Broadway, Suite 900 P.O. Box 4050 Salt Lake City, UT 84110-4050 Tel: (801) 415-3000 Fax: (801) 415-3500 E-mail: smccardell@djplaw.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Soung Joon Kim, chief operating officer. Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Uintah Basin Resources, LLC -- 08/22/11 Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Kwak, Jae-Yong Loan $108,077 262 Clinton Street Paterson, NJ 07522 GEA Westfalia Separator, Inc. Services $87,532 100 Fairway Court, P.O. Box 178 Northvale, NJ 07647 Endress + Hauser, Inc. Services $61,370 2350 Endress Place Greenwood, IN 46143 Hychem, Inc. Services $53,071 Process Engineers & Equipment Corp Services $47,336 Harper Engineering, Inc. Services $43,968 C.H. Spencer and Company Services $32,508 Zimmerman Engineering Company, Inc.Services $29,930 Amezquita, Juan Services $27,830 Casadei, Diego Services $27,120 Perez, Nicholas P. Services $26,210 HICO, LLC Goods $25,903 Airgas Intermountain, Inc. -- $25,608 McJunkin Red Man Corporation Services $21,832 Contreras, Juan J. Services $21,410 ZIons Bank - Bankcard Center Loan $17,206 Hayward Gordon Limited Services $16,391 J-Bar LLC Services $15,957 RMC Welding Services $13,538 Cidra Oilsands, Inc. Services $12,249 DEBT RELIEF: FTC to Close Firm Over Scam Claims ----------------------------------------------- Evan Weinberger at Bankruptcy Law360 reports that the Federal Trade Commission on Tuesday said Debt Relief USA Inc. would close permanently as part of a settlement over claims that it scammed desperate consumers with up-front fees and false promises of improved credit scores. Debt Relief USA Inc. -- http://www.drusabankruptcy.com -- is an Addison debt settlement Company. Debt Relief USA Inc. filed in June 2009 for Chapter 11 bankruptcy protection, disclosing $4.65 million in assets and $5 million in liabilities. DECOR PRODUCTS: Posts US$1 Million Second Quarter Net Income ------------------------------------------------------------ Decor Products International, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income of US$1.06 million on US$5.80 million of net revenues for the three months ended June 30, 2011, compared with net income of US$1.58 million on US$7.61 million of net revenues for the same period during the prior year. The Company also reported net income of US$1.71 million on US$10.84 million of net revenues for the six months ended June 30, 2011, compared with net income of US$2.38 million on US$12.88 million of net revenues for the same period a year ago. The Company's balance sheet at June 30, 2011, showed US$40.44 million in total assets, US$8.57 million in total liabilities and US$31.86 million in total stockholders' equity. HKCMCPA Company Limited, in Hong Kong, expressed substantial doubt about Decor Products International's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that as of Dec. 31, 2010, the Company defaulted on the repayment of convertible notes and promissory notes with an aggregate amount of $2.2 million ($2.0 million as of March 31, 2011). The Company has experienced a delay in assembling the information required to be included in its June 30, 2011, Form 10-Q Quarterly Report. As a result, the Company was late in filing the subject Quarterly Report. A full-text copy of the Form 10-Q is available for free at: http://is.gd/1OD1gt About Decor Products Decor Products International, Inc., through its subsidiaries, mainly engages in the manufacture and sale of furniture decorative paper and related products in the People's Republic of China. The Company is headquartered in Chang'an Town, Dongguan, Guangdong Province, between Shenzhen and Guangzhou in southern China. DELPHI CORP: DPH Files 2nd Quarter Report With Bankr. Court ----------------------------------------------------------- DPH Holdings Corp. and its affiliates submitted to Judge Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York on July 27, 2011, a consolidated operating report for the quarter period ended June 30, 2011. DPH Holdings President John C. Brooks disclosed that the Reorganized Debtors posted an operating loss of $4 million for the second quarter of 2011. DPH Holdings Corp., et al. Schedule of Disbursements Three Months Ended June 30, 2011 DPH Holdings Corp. $6,979,000 ASEC Manufacturing General Partnership 0 ASEC Sales General Partnership 0 DPH Medical Systems Colorado LLC 0 DPH Medical Systems Texas LLC 0 DPH Medical Systems LLC 0 Specialty Electronics International Ltd. 0 Specialty Electronics, LLC 0 DPH Mechatronic Systems, LLC 0 DPH-DAS Overseas LLC 0 DPH-DAS (Holding), LLC 0 DPH Diesel Systems LLC 0 DPH Connection Systems LLC 0 DPH-DAS Services LLC 0 DPH-DAS Human Resources LLC 0 DPH-DAS LLC 17,000 Mr. Brooks explained that disbursements were allocated to the legal entities but all disbursements are being made by DPH Holdings Corp. In connection with the consummation of Delphi Corp.'s Confirmed Modified First Amended Joint Plan of Reorganization, DIP Holdco LLP, now known as Delphi Automotive LLP, as assignee of DIP Holdco 3 LLC, through various subsidiaries and affiliates, acquired on October 6, 2009, substantially all of the global core business of Delphi Corp., now known as DPH Holdings Corp. and its debtor affiliates, including the stock of Delphi Technologies, Inc., and the membership interests in Delphi China LLC. Thus, neither Delphi Technologies, Inc., nor Delphi China LLC is included in the current quarterly operating report. Debtor Delphi Technologies, Inc., filed with the Court a separate operating report for the quarter ended June 30, 2011. Delphi Technologies, Inc. Schedule of Disbursements Three Months Ended December 31, 2010 Delphi Technologies, Inc. $2,251,662 Delphi Corp. Treasurer Keith D. Stipp stated that operating expenses plus any applicable cure payments for the quarter ended June 30, 2011, was used as a proxy for disbursements for Delphi Technologies, Inc. Mr. Stipp added that Delphi Technologies had an operating income of $35 million for the second quarter of 2011. About Delphi Corp. Based in Troy, Michigan, Delphi Corporation -- http://www.delphi.com/-- was a global supplier of electronics and technologies for automotive, commercial vehicle and other market segments. Delphi operates major technical centers, manufacturing sites and customer support facilities in 30 countries. The Company filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 05-44481) on Oct. 8, 2005. John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represented the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represented the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 in total debts. The Court confirmed Delphi's plan on Jan. 25, 2008. The Plan was not consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. At the end of July 2009, Delphi obtained confirmation of a revised plan, build upon a sale of the assets to a entity formed by some of the lenders who provided $4 billion of debtor-in-possession financing, and General Motors Company. On Oct. 6, 2009, Delphi Corp.'s Chapter 11 plan of reorganization became effective. A Master Disposition Agreement executed among Delphi Corporation, Motors Liquidation Company, General Motors Company, GM Components Holdings LLC, and DIP Holdco 3, LLC, divides Delphi's business among three separate parties -- DPH Holdings LLC, GM Components, and DIP Holdco 3. Delphi emerged from Chapter 11 as DPH Holdings. DPH Holdings is responsible for the post-Effective Date administration and eventual closing of the Chapter 11 cases as well as the disposition of certain retained assets and payment of certain retained liabilities as provided under the Modified Plan. Bankruptcy Creditors' Service, Inc., publishes Delphi Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Delphi Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000 DELPHI CORP: Dist. Court Denies Paul Free's Motion for Judgment --------------------------------------------------------------- Judge Avern Cohn of the U.S. District Court for Eastern District of Michigan denied Paul Free's renewed motion for judgment as a matter of law, or in the alternative for new trial. On January 13, 2011, a jury in the Delphi securities fraud case returned a verdict in favor of the U.S. Securities and Exchange Commission as plaintiff and against defendants J.T. Battenberg, III, and Paul Free for violating various securities law and rules. Judge Cohn entered a partial judgment on liability on March 8, 2011. The SEC's case centered on four financial transactions, namely: (1) the GM Settlement Transaction; (2) the Bank One - Precious Metals Transaction; (3) the BBK - Cores and Batteries Transaction; and (4) the EDS - $20 Million Dollar Transaction. At the conclusion of the trial, a jury found that Mr. Battenberg, former Delphi chief executive officer, and Mr. Free, former Delphi chief accounting officer, were negligent in the reporting of the GM Transaction, as well as negligent regarding maintenance of internal controls, and negligent in statements made to the accountants of Delphi relating to the transactions. As to the Bank One, BBK and EDS Transactions, the jury found Mr. Free not only negligent, but responsible for making untrue statements of material fact, making statements that were false and misleading, and making statements with reckless disregard for their truth. Notwithstanding those findings, the jury found Mr. Battenberg not guilty of fraud. Judge Cohn found that Mr. Free has not offered any compelling reasons for the District Court to either set aside the jury's finding him culpable on the misreporting of the four transactions, or to give him a second opportunity to persuade a new jury to find otherwise. "The SEC's proofs at trial were such that for the Court to set aside the verdict as to any of the transactions would be substitution of its judgment for that of the jury," the district judge opined. A full-text copy of Judge Cohn's decision dated August 9, 2011, is available for free at http://is.gd/2zycnGfrom Leagle.com About Delphi Corp. Based in Troy, Michigan, Delphi Corporation -- http://www.delphi.com/-- was a global supplier of electronics and technologies for automotive, commercial vehicle and other market segments. Delphi operates major technical centers, manufacturing sites and customer support facilities in 30 countries. The Company filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 05-44481) on Oct. 8, 2005. John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represented the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represented the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 in total debts. The Court confirmed Delphi's plan on Jan. 25, 2008. The Plan was not consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. At the end of July 2009, Delphi obtained confirmation of a revised plan, build upon a sale of the assets to a entity formed by some of the lenders who provided $4 billion of debtor-in-possession financing, and General Motors Company. On Oct. 6, 2009, Delphi Corp.'s Chapter 11 plan of reorganization became effective. A Master Disposition Agreement executed among Delphi Corporation, Motors Liquidation Company, General Motors Company, GM Components Holdings LLC, and DIP Holdco 3, LLC, divides Delphi's business among three separate parties -- DPH Holdings LLC, GM Components, and DIP Holdco 3. Delphi emerged from Chapter 11 as DPH Holdings. DPH Holdings is responsible for the post-Effective Date administration and eventual closing of the Chapter 11 cases as well as the disposition of certain retained assets and payment of certain retained liabilities as provided under the Modified Plan. Bankruptcy Creditors' Service, Inc., publishes Delphi Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Delphi Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000 DELPHI CORP: Congressional Panel Examines Delphi Pension Matters ---------------------------------------------------------------- A Congressional panel heard testimonies on June 22, 2011, that the Obama administration created winners and losers with respect to Delphi Corp.'s pension benefits when it led the "bankruptcy overhauls" of General Motors Corp. and Chrysler, LLC, in 2009, Mary Williams Walsh of The New York Times reported. "It is frightening to even think about allowing this precedent to stand," Bruce Gump of the Delphi Salaried Retirees Association told the Subcommittee of the House Committee on Oversight and Government Reform, The New York Times relayed. The New York Times noted that the retirees represented by the United Auto Workers and two other unions got their full benefits because of an "unusual side agreement" with GM, which was honored even after GM filed for Chapter 11. Retirees who were not members of the union, or who are members of smaller unions did not get that kind of treatment, the report said. Messages revealed that shortly after GM entered Chapter 11, the Auto Task Force asked GM how it intends to handle pension at Delphi, the report disclosed. Ten years ago, when GM was spinning off Delphi, GM promised the UAW that if its pension fund ever failed at Delphi, they could come back to GM to be made whole through special payments called "top-ups," The New York Times said. There was no precedent for any company making those payments, according to the report. Matthew Feldman of the Auto Task Force warned GM that honoring the 10-year-old promise "could get messy," and was uncertain whether the Pension Benefit Guaranty Corporation would permit that move, said The New York Times. However, Walter Borst, GM's treasurer at that time, said the pension agency could not throw a wrench into GM's plans, the report stated. "Our reading of the benefit guarantee is clear, that it's for the benefit of retirees, and not the PBGC," Mr. Borst wrote in a message, the report added. Some lawmakers commented that it seemed GM had been calling the shots, even though it was bankrupt and dependent on federal life support, The New York Times wrote. The Auto Task Force's Senior Advisor Ron Bloom testified at the hearing that GM complied with all relevant laws while in Chapter 11, stating that he too was troubled by the losses some parties suffered as a result of GM's decision, according to The New York Times. In the wake of the hearing, members of the House of Representatives urged that legislation be passed that would pay all Delphi retirees their full pensions, Thomas Gnau of Dayton Daily News reported in another article. The subcommittee held the hearing to examine the implications of the U.S. Government's assistance to GM, according to Dayton Daily News. Representative Mike Turner insisted that the Delphi retirees are entitled to those benefits, adding that those benefits were wrongly taken from them, Dayton Daily News said. Two weeks after the hearing, Mr. Turner wrote to Mr. Bloom asking him to respond to his questions regarding how the Delphi pension decision was reached. At the hearing, U.S. Representative Dan Burton asked Mr. Bloom, "I'd like to know why the salaried employees got chopped up so badly," Dayton Daily News noted. To which, Mr. Bloom replied that a pending lawsuit filed by the DSRA prevented him from commenting at length, but he acknowledged that some stakeholders received "far, far less than they were promised," Dayton Daily News stated. Some lawmakers, however, defended the government's actions, Dayton Daily News said. "If the federal government had not come to GM's aid, the firm would have been liquidated," U.S. Representative Elijah Cummings was quoted by Dayton Daily News as saying. In connection with these events, the DSRA is suing the U.S. Department of the Treasury, the Auto Task Force, the Treasury Department Secretary Tim Geithner and former Auto Task Force heads Steve Rattner and Ron Bloom, Mark Modica of NLPC.org related. The first hearing on the case is scheduled for Aug. 17, 2011, Mr. Modica said. Chuck Cunningham of the DSRA disclosed that the lawsuit is premised on the blatant favoritism and discrimination with regards to pension benefits for groups that should have had equal standing, NLPC.org added. In response to a letter for clarification from U.S. Representative Darrell Issa of the Committee on Oversight and Government Reform, Mr. Bloom said he did not recall making a comment at a dinner two years earlier in July 2009. Mr. Bloom, however, acknowledged that he cannot say with absolute certainty that he did not make the alleged comment. The comment being that Mr. Bloom had joked that he "did it all for the unions" at a celebratory dinner for the Auto Task Force, according to David Shepardson of The Detroit News. The Detroit News recalled reporting that Mr. Bloom made the comment in a November 2009 article. In his 2010 memoir "Overhaul," Mr. Rattner also quoted Mr. Bloom as making the same comment at a dinner at Rosa Mexicao on July 21, 2009, The Detroit News reported. "It appears that either a respected reporter and your former boss in the Obama administration have both given inaccurate accounts of your comments to the public or your testimony was not completely truthful," Mr. Issa, together with U.S. Representatives Dan Burton and Jim Jordan wrote to Mr. Bloom, according to The Detroit News. "I can assure you that the comment attributed to me is not reflective of my view," Mr. Bloom concluded in his letter. The joke drew the anger of the Delphi salaried retirees, who have complained that they have lost up to 70% of their pensions while their unionized counterparts did not lose any pension benefits because GM agreed to top up the lost benefits, The Detroit News stated. About Delphi Corp. Based in Troy, Michigan, Delphi Corporation -- http://www.delphi.com/-- was a global supplier of electronics and technologies for automotive, commercial vehicle and other market segments. Delphi operates major technical centers, manufacturing sites and customer support facilities in 30 countries. The Company filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 05-44481) on Oct. 8, 2005. John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represented the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represented the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 in total debts. The Court confirmed Delphi's plan on Jan. 25, 2008. The Plan was not consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. At the end of July 2009, Delphi obtained confirmation of a revised plan, build upon a sale of the assets to a entity formed by some of the lenders who provided $4 billion of debtor-in-possession financing, and General Motors Company. On Oct. 6, 2009, Delphi Corp.'s Chapter 11 plan of reorganization became effective. A Master Disposition Agreement executed among Delphi Corporation, Motors Liquidation Company, General Motors Company, GM Components Holdings LLC, and DIP Holdco 3, LLC, divides Delphi's business among three separate parties -- DPH Holdings LLC, GM Components, and DIP Holdco 3. Delphi emerged from Chapter 11 as DPH Holdings. DPH Holdings is responsible for the post-Effective Date administration and eventual closing of the Chapter 11 cases as well as the disposition of certain retained assets and payment of certain retained liabilities as provided under the Modified Plan. Bankruptcy Creditors' Service, Inc., publishes Delphi Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Delphi Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000 DESERT OASIS: Taps Swecker & Company for Accounting, Tax Services ----------------------------------------------------------------- Desert Oasis Apartments, LLC, asks the U.S. Bankruptcy Court for the District of Nevada for permission to employ Swecker & Company, Ltd., to provide general accounting and tax services. In particular, Swecker anticipates the services will include, but are not limited to, the following: a. bank reconciliations; b. adjusting journal entries; and c. preparation of general ledgers, financial statements, and annual partnership income tax returns. Swecker's standard billing rates are: CPA review $300 Staff Accountant $120 Administrative Staff $60 To the best of the Debtor's knowledge, Swecker is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The Court will convene a hearing on Sept. 13, 2011, at 10:00 a.m., to consider the Debtor's request to employ Swecker. 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. No trustee or creditors committee have been appointed in the case DSI HOLDINGS: Can Hire DJM Realty as Real Estate Consultants ------------------------------------------------------------ The Honorable Kevin J. Carey has authorized DSI Holdings, Inc. and its debtor affiliates to employ DJM Realty Services, LLC as their real estate consultants, nunc pro tunc to the Petition Date. The Debtors are authorized to compensate DJM Realty in accordance with the terms and conditions in the Amended Real Estate Consulting and Advisory Services Agreement, dated Aug. 9, 2011, among the parties, pursuant to Section 328(a) of the Bankruptcy Code. Payment of DJM Realty's fees and reimbursements will not be subject to the procedures set forth in the Order Establishing Procedures for Interim Compensation and Reimbursement of Expenses of Professionals. About Deb Shops Deb Shops Inc., is a closely held women's-clothing retailer based in Philadelphia. Deb Shops sells junior and large-size clothing for girls and women ages 13 to 25 through more than 320 U.S. stores and through debshops.com. It was bought out by the New York investment firm Lee Equity Partners in October 2007. DSI Holdings Inc. and 54 affiliates, including Deb Shops, sought bankruptcy protection (Bankr. D. Del. Lead Case No. 11-11941), on June 26, 2011, to sell all assets under 11 U.S.C. Sec. 363. As of April 30, 2011, the Debtors' unaudited financial statements reflected assets totaling $124.4 million and liabilities totaling $270.1 million. Lawyers at Weil Gotshal & Manges LLP and Richards, Layton & Finger P.A. serve as bankruptcy counsel. Rothschild Inc. serves as the Debtors' investment banker and financial advisors. Kurtzman Carson Consultants, LLC, serves as claims agent. Sitrick & Company serves as public relations consultants. Ableco, the DIP Agent is represented by Michael L. Tuchin, Esq., and David A. Fidler, Esq., at Klee Tuchin Bogdanoff & Stern LLP. Conway Del Genio serves as financial advisors to the First Lien Lenders. Schulte Roth serves as corporate and tax advisors to the First Lien Lenders. Another lender, Lee DSI Holdings, is represented by Jennifer Rodburg, Esq., at Fried Frank Harris Shriver & Jacobson LLP. Roberta A. Deangelis, U.S. Trustee for Region 3, appointed five unsecured creditors to serve on the Official Committee of Unsecured Creditors. Otterbourg Steindler Houston & Rosen serves as lead counsel to the Committee. DSI HOLDINGS: Committee Can Retain Lead & Local Counsel, Advisor ---------------------------------------------------------------- The Honorable Kevin J. Carey approved the applications of the Official Committee of Unsecured Creditors of DSI Holdings, Inc., et al. to retain (i) Mesirow Financial Consulting, LLC as its financial advisors nunc pro tunc July 11, 2011; (ii) Pepper Hamilton LLP as its Delaware counsel, nunc pro tunc to July 11, 2011; and (iii) Otterbourg, Steindler, Houston & Rosen, P.C. as its lead counsel, effective as of July 11, 2011. About Deb Shops Deb Shops Inc., is a closely held women's-clothing retailer based in Philadelphia. Deb Shops sells junior and large-size clothing for girls and women ages 13 to 25 through more than 320 U.S. stores and through debshops.com. It was bought out by the New York investment firm Lee Equity Partners in October 2007. DSI Holdings Inc. and 54 affiliates, including Deb Shops, sought bankruptcy protection (Bankr. D. Del. Lead Case No. 11-11941), on June 26, 2011, to sell all assets under 11 U.S.C. Sec. 363. As of April 30, 2011, the Debtors' unaudited financial statements reflected assets totaling $124.4 million and liabilities totaling $270.1 million. Lawyers at Weil Gotshal & Manges LLP and Richards, Layton & Finger P.A. serve as bankruptcy counsel. Rothschild Inc. serves as the Debtors' investment banker and financial advisors. Kurtzman Carson Consultants, LLC, serves as claims agent. Sitrick & Company serves as public relations consultants. Ableco, the DIP Agent is represented by Michael L. Tuchin, Esq., and David A. Fidler, Esq., at Klee Tuchin Bogdanoff & Stern LLP. Conway Del Genio serves as financial advisors to the First Lien Lenders. Schulte Roth serves as corporate and tax advisors to the First Lien Lenders. Another lender, Lee DSI Holdings, is represented by Jennifer Rodburg, Esq., at Fried Frank Harris Shriver & Jacobson LLP. Roberta A. Deangelis, U.S. Trustee for Region 3, appointed five unsecured creditors to serve on the Official Committee of Unsecured Creditors. EAGLE INDUSTRIES: To Seek Approval of Plan Disclosures Sept. 22 --------------------------------------------------------------- Eagle Industries LLC has filed a plan of reorganization and an explanatory disclosure statement dated Aug. 22, 2011. The plan contemplates that cancelling of existing equity interests in the Debtor while general unsecured claims will share in the distribution of $100,000 approximately 60 days after the effective date. The Debtors will continue to operate their businesses and manage their assets, which will generate income projected to be sufficient for the Debtors to meet their ongoing operating expenses and obligations contemplated under the Plan. The plan of reorganization classifies claims into different classes: A. Administrative Expenses - To be paid in full on the Effective Date of the Plan, or according to terms of obligation. B. Priority Tax Claims - Will receive the present value of the claim, in regular installments paid over a period not exceeding five years. C. Super-Priority Claims - The super-priority claims of Citizens First Bank will be paid in full in accordance with the terms of the cash collateral order. The super-priority claim of subordinate DIP lenders will have his Super-Priority Claim satisfied in full on the Effective Date upon issuance and pro rata distribution of new membership interests in each of the Debtors. D. Secured Claims - Citizens First Bank will retain its liens and have its Secured Claim paid in full in accordance with the terms of the cash collateral order. PBI Bank will retain its liens and have its Secured Claim paid in full through regular monthly cash payments to cover principal and interest accruing under the terms of the pre-petition promissory note through the end of 2014. From 2015 to 2021, the regular monthly cash payments will increase to $65,940.85. In 2022, the Debtors will make 12 regular monthly payments of $70,940.85. On Aug. 1, 2022, the Debtors will pay the remaining principal and all accrued but unpaid interest due. PNC Equipment Finance will retain its lien and have its Secured Claim paid in full according to the terms of the parties' Sale Agreement. E. General Unsecured Claims - Will receive cash payments representing its prorata share of $100,000 beginning 60 days after effective date. F. Equity Interest Holders - Existing membership interests will be canceled. The hearing on the disclosure statement is scheduled on Sept. 22, 2011, at 10 a.m. (Central Time). A full-text copy of the Disclosure Statement, is amended, is available for free at http://bankrupt.com/misc/EAGLE_disclosurestatement.pdf About Eagle Industries LLC Bowling Green, Kentucky-based Eagle Industries LLC is engaged in furniture manufacturing, sales and delivery. Eagle Industries filed for Chapter 11 bankruptcy protection (Bankr. W.D. Ky. Case No. 10-11636) on Oct. 27, 2010. David M. Cantor, Esq., at Seiller Waterman LLC, represents the Debtor. The Debtor estimated assets and debts at $10 million to $50 million. EAGLE WINDOWS: Buyer Liable in Post-Sale Tort Action ---------------------------------------------------- The Supreme Court of South Carolina reversed a lower court ruling that dismissed a contribution suit involving Eagle Windows & Doors, Inc. In May 2002, Eagle Windows & Doors' predecessor purchased the assets of Eagle & Taylor Company, d/b/a Eagle Windows & Doors, Inc. (Eagle I), from Eagle I's bankruptcy estate. In 2000, homeowners constructed a residence using defective windows manufactured by Eagle I. In 2006, homeowners settled their construction claims against contractor Gilliam Construction Company, Inc. Gilliam and its insurer, Nationwide Mutual Insurance Company, Inc., filed the contribution suit against Eagle Windows & Doors as successor to Eagle I. The circuit court granted Eagle Windows & Doors' motion to dismiss, holding (1) dismissal was required under F.R.C.P. Rule 12(b)(6) because the bankruptcy order expressly precluded any state law successor liability actions since the sale was "free and clear" under 11 U.S.C. Sec. 363(f) of the Bankruptcy Code; and (2) that dismissal was proper under Rule 12(b)(1), SCRCP, because the bankruptcy court in Ohio which issued the Eagle I order retained jurisdiction over any claims against respondent for successor liability. The South Carolina Supreme Court, in Opinion No. 27030, dated Aug. 22, 2011, available at http://is.gd/0DAN56from Leagle.com, held that Paragraph I of the Eagle I bankruptcy order first discharged respondent from all claims "arising before the sale of the Assets" directing that any such claims "attach" to the sales proceeds. This paragraph refers to an action in rem against the proceeds paid to the debtor, while a post-sale tort action against the successor entity is not an action against the sale proceeds received by the debtor, but rather an in personam action against the successor itself. Nothing in Paragraph I bars the contribution suit. The appellate case is Nationwide Mutual Insurance Company, Inc., and Gilliam Construction Company, Inc., Appellants, v. Eagle Windows & Doors, Inc., as Respondent, American Architectural Products Corporation, Window and Door Concepts, Inc., Charles Goad, Hobbit Plastering, Inc., Phillip L. Bender, Upstate Waterproofing, Inc., Dale Coleman and Gary Churchill, Defendants (S.C. Supt. Ct.). Gilliam and Nationwide Mutual are represented by: Jason Michael Imhoff, Esq. THE WARD LAW FIRM P.O. Box 5663 Spartanburg, SC 29304 Tel: (864) 573-8500 Fax: (864) 585-3090 E-mail: sbyars@wardfirm.com Eagle Windows & Doors is represented by: Ashley Dantzler Wright, Esq. WARREN & SINKLER 171 Church Street, Suite 340 Charleston, SC 29401 Telephone: 843-577-0660 Facsimile: 843-577-6843 E-mail: law@warren-sinkler.com ED HOLMES: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Ed Holmes and Associates Land Surveyors, PA P.O. Box 17335 Asheville, NC 28816 Bankruptcy Case No.: 11-10807 Chapter 11 Petition Date: August 19, 2011 Court: United States Bankruptcy Court Western District of North Carolina (Asheville) Judge: George R. Hodges Debtor's Counsel: D. Rodney Kight, Jr., Esq. KIGHT LAW OFFICE PC 7 Orchard Street, Suite 100 Asheville, NC 28801 Tel: (828) 255-9881 Fax: (828) 255-9886 E-mail: info@kightlaw.com Scheduled Assets: $432,506 Scheduled Debts: $1,663,841 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ncwb11-10807.pdf The petition was signed by W. Edwin Holmes, president. Debtor-affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- Craggy Land Co. 11-10396 04/27/11 Shelby Development Partners 11-10484 05/16/11 EDIETS.COM INC: Files Form 10-Q, Incurs $851,000 Q2 Net Loss ------------------------------------------------------------ eDiets.com, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $851,000 on $5.95 million of total revenue for the three months ended June 30, 2011, compared with a net loss of $34.60 million on $5.43 million of total revenue for the same period during the prior year. The Company also reported a net loss of $1.23 million on $12.88 million of total revenue for the six months ended June 30, 2011, compared with a net loss of $38.36 million on $10.45 million of total revenue for the same period during the prior year. eDiets.com reported a net loss of $43.3 million on $23.4 million of revenues for 2010, compared with a net loss of $12.1 million on $18.1 million of revenues for 2009. The Company's balance sheet at June 30, 2011, showed $5.35 million in total assets, $4.54 million in total liabilities and $812,000 in total stockholders' equity. Ernst & Young LLP, in Boca Raton, Florida, expressed substantial doubt about eDiets.com's ability to continue as a going concern. The independent auditors noted that the Company has incurred recurring operating losses and has a working capital deficiency. The Company said that in light of the results of its operations, management has and intends to continue to evaluate various possibilities, including raising additional capital through the issuance of common or preferred stock, securities convertible into common stock, or secured or unsecured debt, selling one or more lines of business, or all or a portion of the Company's assets, entering into a business combination, reducing or eliminating operations, liquidating assets, or seeking relief through a filing under the U.S. Bankruptcy Code. A full-text copy of the Form 10-Q is available for free at: http://is.gd/weXDap About eDiets eDiets.com, Inc. is a leading provider of personalized nutrition, fitness and weight-loss programs. eDiets currently features its award-winning, fresh-prepared diet meal delivery service as one of the more than 20 popular diet plans sold directly to members on its flagship site, http://www.eDiets.com. EINSTEIN MOOMJY: Owners Aims for Bankruptcy Sale to Keep Biz. ------------------------------------------------------------- Hugh R. Morley at The Bergen Record reports that Einstein Moomjy, the up-market rug store with its flagship showroom in Paramus, New Jersey, has filed for bankruptcy. The Company, started in 1948 by Iranian and German immigrants, has slimmed its workforce from more than three dozen to just a pair of unpaid employees and members of the Moomjy family who run the company's three stores, in Paramus, North Plainfield and Whippany, the Company's bankruptcy attorney said. According to the report, Daniel M. Stolz, Esq., said Einstein Moomjy hopes that a bankruptcy sale, expected to take place in late September or early October, at the three stores will enable the Company to get back on its feet and continue to operate North Plainfield and Whippany stores. The lease on the Paramus store expires in February, he said, and the Company does not expect the landlord to extend it. "There is hope that these sales would raise enough money to keep the creditors happy and allow the Moomjys to continue in business," Mr. Stolz said. Einstein Moomjy, Inc., filed a Chapter 11 petition (Bankr. D. N.J. Case No. 11-34723) on Aug. 19, 2011. Daniel Stolz, Esq., at Wasserman, Jurista & Stolz, in Millburn, New Jersey, serves as counsel. In its schedules, the Debtor disclosed $2.6 million in assets and $4.5 million in liabilities as of the Chapter 11 filing. EINSTEIN MOOMJY: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Einstein Moomjy, Inc. 265 Route 10 Whippany, NJ 07981 Bankruptcy Case No.: 11-34723 Chapter 11 Petition Date: August 19, 2011 Court: United States Bankruptcy Court District of New Jersey (Newark) Judge: Novalyn L. Winfield Debtor's Counsel: Daniel Stolz, Esq. WASSERMAN, JURISTA & STOLZ 225 Millburn Ave., Suite 207 P.O. Box 1029 Millburn, NJ 07041-1712 Tel: (973) 467-2700 E-mail: dstolz@wjslaw.com Scheduled Assets: $2,569,934 Scheduled Debts: $4,473,218 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/njb11-34723.pdf The petition was signed by Walter Moomjy, president. ELEPHANT & CASTLE: Motion for Extension of Response Deadlines OK'd ------------------------------------------------------------------ On Aug. 15, 2011, the U.S. Bankruptcy Court for the District of Masachusetts, Eastern Division, approved the joint motion of Elephant & Castle Group, Inc., et al., and the Official Committee of Unsecured Creditors, extending to Aug. 19, 2011, the following deadlines: (i) the Debtors' response deadline to the application of the Creditors Committee to employ and retain FTI Consulting, Inc., as Financial Advisors to the Committee effective as of July 18, 2011 (Docket No. 81); and (ii) the Creditors Committee's response deadline to the application of the Debtors for authorization to retain Bellmark Partners, LLC, as their Financial Advisors. As reported in the TCR on Aug. 9, 2011, BellMark Partners will perform consulting and financial advisory services that will be necessary during the chapter 11 case. BellMark Partners' compensation will consist of: a) a transaction fee of the greater of 2% of the Transaction Value up to and including $25 million; plus 3% of each incremental dollar between $25 million and $30 million; plus 4% of each incremental dollar in excess of $30 million, subject to an overall minimum Transaction Fee of $350,000; b) BellMark will only earn a Transaction Fee on whatever final sales price is obtained and thereafter approved by the Court after a stalking-horse bid is subject to a bidding and auction process where other competitive bids are made, provided, however, that if no other competitive bids are made, then the Transaction Fee shall be based on the stalking-horse bid after it has been approved by the Court as the final purchaser; c) any Transaction Fee earned by BellMark will be held from the proceeds of any Transaction for the benefit of BellMark until the Court rules on BellMark's fee application. If such a withholding results in one or more secured creditors not being paid in full from the sale proceeds, such withholding will be deemed a carve out from the collateral of such secured creditor. In addition, the Debtors agreed to pay to BellMark a monthly set fee amount of $5,000, except that the Monthly Fee will be $10,000 for the first month starting from the commencement of these bankruptcy cases. As reported in the TCR on Aug. 10, 2011, FTI Consulting will, among other things: -- assist the Committee with the assessment and monitoring of the Debtors' short term cash flow, liquidity, prepetition claim payments and operating results; -- assist the Committee in the review of any proposed plan(s) of reorganization and the related disclosure statement; and -- assist the Committee in the review and assessment of potential bids from investors in connection with any sale process. Subject to Court approval, FTI will seek payment for compensation on a fixed monthly basis of $45,000 per month, plus reimburesment of actual and necessary expenses incurred by FTI. About Massachusetts Elephant & Castle Group Boston-based Massachusetts Elephant & Castle Group, Inc., and its affiliates operates 21 British-style restaurant pubs in the U.S. and Canada. The chain, with 10 locations in the U.S., generated revenue of $47.5 million in 2010, throwing off $3.9 million of earnings before interest, taxes, depreciation, amortization, and foreign exchange gains or losses. Elephant & Castle filed for Chapter 11 protection (Bankr. D. Mass. Lead Case No. 11-16155) on June 28, 2011. Bankruptcy Judge Henry J. Boroff presides over the case. John G. Loughnane, Esq. at Eckert Seamans Chein& Mellott, LLC represents the Debtor in its restructuring effort. Repechage Investments' estimated assets and debts at $10 million to $50 million. Other Debtors' estimated assets and debts at $0 to $10 million. On July 12, 2011, the U.S. Trustee's office appointed the Official Committee of Unsecured Creditors. ELEPHANT & CASTLE: Panel Can Retain Goulston & Storss as Counsel ---------------------------------------------------------------- On Aug. 15, 2011, the U.S. Bankruptcy Court for the District of Massachusetts authorized the Official Committee of Unsecured Creditors of Massachusetts Elephant & Castle Group, Inc., et al., to retain the firm of Goulston & Storrs, P.C., as counsel to the Committee effective as of July 13, 2011. The Court is satisfied that Goulston & Storrs, while employed by the Committee, does not represent any other entity having an adverse interest in connection with the Debtors' cases. As reported in the TCR on Aug. 10, 2011, Goulston & Storrs' standard hourly rates for attorneys range from $295 - $855 per hour and that its rates for paralegal range from $205 - $375 per hour. The professionals who will have primary responsibility for handling matters on behalf of the Committee in these cases and their respective hourly rates are: Christine D. Lynch $565 Peter Bilowz $500 Timothy J. Carter $305 Stacey A. Mordas, paralegal $250 Goulston & Storrs has agreed to discount its standard hourly rates by 10%, which will be reflected in each of the applications for compensation filed with the Court. About Massachusetts Elephant & Castle Group Boston-based Massachusetts Elephant & Castle Group, Inc., and its affiliates operates 21 British-style restaurant pubs in the U.S. and Canada. The chain, with 10 locations in the U.S., generated revenue of $47.5 million in 2010, throwing off $3.9 million of earnings before interest, taxes, depreciation, amortization, and foreign exchange gains or losses. Elephant & Castle filed for Chapter 11 protection (Bankr. D. Mass. Lead Case No. 11-16155) on June 28, 2011. Bankruptcy Judge Henry J. Boroff presides over the case. John G. Loughnane, Esq. at Eckert Seamans Chein& Mellott, LLC represents the Debtor in its restructuring effort. Repechage Investments' estimated assets and debts at $10 million to $50 million. Other Debtors' estimated assets and debts at $0 to $10 million. On July 12, 2011, the U.S. Trustee's office appointed the Official Committee of Unsecured Creditors. EUROWALK RSW: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Eurowalk RSW Shoe Group Inc. dba Shuz of Davis dba Shuz of Danville dba Shuz of Los Gatos dba Shuz of Rockridge 11486 Marwick Drive Dublin, CA 94568 Bankruptcy Case No.: 11-48861 Chapter 11 Petition Date: August 18, 2011 Court: United States Bankruptcy Court Northern District of California (Oakland) Judge: Roger L. Efremsky Debtor's Counsel: Darya Sara Druch, Esq. LAW OFFICES OF DARYA SARA DRUCH 1 Kaiser Plaza #480 Oakland, CA 94612 Tel: (510) 465-1788 E-mail: ecf@daryalaw.com Estimated Assets: $50,001 to $100,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/canb11-48861.pdf The petition was signed by Johnny K. Riker Sr., president. EMPRESAS MARTINEZ: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Empresas Martinez Valentin, Corp. aka Bronze & Metal Works aka Supermercado El Tabonuco 5 De Diciembre Avenue, No. 108 Sabana Grande, PR 00637 Bankruptcy Case No.: 11-07018 Chapter 11 Petition Date: August 19, 2011 Court: United States Bankruptcy Court District of Puerto Rico (Ponce) Debtor's Counsel: Carmen D. Conde Torres, Esq. C. CONDE & ASSOCIATES 254 San Jose Street, 5th Floor San Juan, PR 00901-1523 Tel: (787) 729-2900 Fax: (787) 729-2203 E-mail: notices@condelaw.com Scheduled Assets: $4,256,600 Scheduled Debts: $2,442,518 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/prb11-07018.pdf The petition was signed by Angel Javier Martinez Valentin, president. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Angel Javier Martinez-Valentin 11-06321 07/28/11 EXTENDED STAY: Trustee Fights $8BB Blackstone Suits Consolidation ----------------------------------------------------------------- Hobart Truesdell asked Judge James Peck of the U.S. Bankruptcy Court for the Southern District of New York to deny approval of the motion to consolidate the lawsuits it filed against Blackstone Group LP and other co-defendants. Mr. Truesdell, who administers the litigation trust created for Extended Stay's creditors pursuant to the hotel chain's Chapter 11 plan of reorganization, filed two lawsuits in on June 14, 2011, against the Blackstone group in the Bankruptcy Court and another lawsuit in the Supreme Court of New York in connection with the 2007 sale of the hotel chain. One of the two cases filed in the Bankruptcy Court under Case No. 11-02255 seeks to recover from the Blackstone plaintiffs about $2.1 billion in alleged fraudulent transfers made at the closing of the leveraged buy-out. The second lawsuit filed under Case No. 11-02254 seeks relief similar with relief sought in a third similar case against the same Blackstone plaintiffs filed in a New York Supreme Court. The state court action has recently been transferred recently to the Bankruptcy Court under Case No. 11-02398 upon request from the Blackstone group. Lawyer for the Litigation Trustee, Marc Powers, Esq., at Baker & Hostetler LLP, in New York, said in court papers dated August 18, 2011, that the proposed consolidation is premature given the trustee's motions to remand the state court action back to the Supreme Court and motions to withdraw the reference of the lawsuits. In court papers dated July 29, 2011, the Litigation Trustee proposed for the transfer of the state court action last month as it reportedly concerns the administration of Extended Stay's bankruptcy estate. Meanwhile, the Trustee's motions to withdraw the reference, which were filed in late July and early August, are based largely on the Supreme Court's June 2011 decision in Stern v. Marshall, the controversial case involving the estates of Anna Nicole Smith. The Stern v. Marshall case is said to have limited bankruptcy courts' constitutional authority to enter final judgment against third-parties on pre-bankruptcy state law claims under certain circumstances. "Once the motion for remand is decided, the state court action may be back in the Supreme Court of New York and thus could not be consolidated with any of the federal actions," Mr. Powers said in court papers. Moreover, Mr. Powers stated, the lawsuits cannot be consolidated since they are "significantly different" from each other. "The separate causes of action involve widely divergent issues of law and proof," he pointed out. "Consolidation would result in unwarranted delay, increased complication and a likelihood of confusion of issues." Mr. Powers further said that consolidation would lead to "fundamental unfairness and prejudice to the trust in the form of delay, increased litigation costs and juror confusion." The Litigation Trustee also criticized Lightstone Group LLC and 14 other defendants that were named in another lawsuit he filed, also on June 14, in the Bankruptcy Court under Case No. 11-2256. In court filings dated August 8, 2011, Lightstone Group and its co-defendants filed a motion to consolidate Case No. 11-2256 with the three lawsuits against the Blackstone group. Lightstone also filed a statement supporting the approval of Blackstone group's motion to consolidate. The Lightstone plaintiffs argued that consolidation is appropriate because the cases are "closely related, if not substantially identical" to one another and that they arose from the same allegation that those involved in facilitating the 2007 sale of the hotel chain acted out of self- interest that pushed Extended Stay to bankruptcy. The other Lightstone defendants are David Lichtenstein, DL-DW Holdings LLC, Lightstone Holdings LLC, Lightstone Commercial Management, BHAC Capital IV LLC, Park Avenue Funding LLC, Bruno de Vinck, Peyton Owen, Joseph Teichman, Arbor Commercial Mortgage LLC, ABT-ESI LLC, Arbor ESH II LLC, Guy Milone and Joseph Martello. Mr. Lichtenstein, chairman of Lightstone Group, led the investment consortium that purchased the hotel chain from Blackstone Group LP through a $7.4 billion loan from Bear Stearns Commercial Mortgage Inc. and two U.S. banks. According to the counsel to the Litigation Trustee, the facts necessary to resolve the case against the Lightstone defendants are distinct. He pointed out that the Lightstone case involves no less than $300 million of specific transfers not at issue in any of the other lawsuits, which dispels any notion that all the four cases share common facts. On August 12, 2011, the Litigation Trustee served an amended complaint in the Lightstone case adding four more defendants, namely Gramercy Warehouse Funding IV LLC, J.P. Morgan Clearing Corp., Merrill Lynch & Co. Inc., and SL Green Funding LLC. In a related development, Wachovia Bank N.A. entered into an agreement with the Litigation Trustee, which gives the bank time to respond to a lawsuit filed against it until September 13, 2011. The lawsuit, under Case No. 11-02259, is also handled by the Bankruptcy Court. Blackstone, et al., Oppose Proposed Transfer of Suit The Blackstone group, in court papers dated August 22, 2011, criticized the proposed transfer of the state court action against them back to the Supreme Court. The group's lawyer, Jeffrey Powell, Esq., at Kirkland & Ellis LLP, in Washington, D.C., asserted that the Bankruptcy Court has jurisdiction over the state court action because it stemmed from Extended Stay's bankruptcy. Mr. Powell pointed out that the state court action has "a close nexus" to Extended Stay's bankruptcy case or restructuring plan as the plan created the litigation trust to bring claims on behalf of the hotel chain's estate. He added that the restructuring plan retains exclusive jurisdiction over any claims the trustee brings to recover assets for Extended Stay's estates. Mr. Powell further said that the state court action should not be transferred back to Supreme Court given the "judicial economy and efficiency" of the Bankruptcy Court in handling all the lawsuits filed by the trustee based on the same factual allegations. The Blackstone group drew support from other defendants including the Lightstone group, Thomas Burdi, Gary DeLapp, Dae Hum Kim, F. Joseph Rogers, Arbor ESH II LLC, Arbor Commercial Mortgage LLC, ABT-ESI LLC, Guy Milone Jr., Joseph Martello, Citigroup Global Markets Inc., and PGRT ESH Inc. Banc of America Securities LLC, Bank of America N.A., and Ebury Finance Limited also criticized the proposed transfer, saying it would require them "to litigate duplicative claims in multiple actions" in separate courts. About Extended Stay Extended Stay is the largest owner and operator of mid-price extended stay hotels in the United States, holding one of the most geographically diverse portfolios in the lodging sector with properties located across 44 states (including 11 hotels located in New York) and two provinces in Canada. As a result of acquisitions and mergers, Extended Stay's portfolio has expanded to encompass over 680 properties, consisting of hotels directly owned or leased by Extended Stay or one of its affiliates. Extended Stay currently operates five hotel brands: (i) Crossland Economy Studios, (ii) Extended Stay America, (iii) Extended Stay Deluxe, (iv) Homestead Studio Suites, and (v) StudioPLUS Deluxe Studios. Extended Stay Inc. and its affiliates filed for Chapter 11 on June 15, 2009 (Bankr. S.D.N.Y. Case No. 09-13764). Judge James M. Peck handles the case. Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, in New York, represents the Debtors. Lazard Freres & Co. LLC is the Debtors' financial advisors. Kurtzman Carson Consultants LLC is the claims agent. The Official Committee of Unsecured Creditors tapped Gilbert Backenroth, Esq., Mark T. Power, Esq., and Mark S. Indelicato, Esq., at Hahn & Hessen LLP, in New York, as counsel. Extended Stay had assets of $7.1 billion and debts of $7.6 billion as of the end of 2008. Extended Stay Inc. in October successfully emerged from Chapter 11 protection. An investment group including Centerbridge Partners, L.P., Paulson & Co. Inc. and Blackstone Real Estate Partners VI, L.P. has purchased 100 percent of the Company for $3.925 billion in connection with the Plan of Reorganization confirmed by the Bankruptcy Court in July 2010. Bankruptcy Creditors' Service, Inc., publishes Extended Stay Bankruptcy News. The newsletter provides gavel-to-gavel coverage of the Chapter 11 proceedings undertaken by Extended Stay Inc. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). FIRST NAT'L BANK: FDIC Sues Former Executives Over Losses --------------------------------------------------------- Former First National Bank of Arizona Chief Executive Officer Gary A. Dorris and former director Philip A. Lamb "sacrificed safety" and promoted risky non-traditional mortgage loans that ultimately caused the bank's failure, the Federal Deposit Insurance Corp. said in a lawsuit, FDIC v. Dorris, (D. Ariz. Case No. 2:11-cv- 01652), according to reporting by Sophia Pearson at Bloomberg News. Messrs. Dorris and Lamb were negligent in exercising their duties, given the obvious risks of the bank's business model, the agency said Aug. 23 in a complaint in federal court in Phoenix. FNB Arizona closed its wholesale mortgage business in 2007, terminating more than 500 people. It was acquired by First National Bank of Nevada in June 2008, less than a month before that bank was shuttered on July 25, the FDIC said in the complaint. FIVE RIVERS: Case Summary & 19 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Five Rivers Petroleum LLC dba Petro 2 24 Donegal Avenue Claysville, PA 15323 Bankruptcy Case No.: 11-25202 Chapter 11 Petition Date: August 18, 2011 Court: United States Bankruptcy Court Western District of Pennsylvania (Pittsburgh) Judge: Jeffery A. Deller Debtor's Counsel: Michael J. Henny, Esq. LAW OFFICES OF MICHAEL J. HENNY Suite 2828 Gulf Tower 707 Grant Street Pittsburgh, PA 15219 Tel: (412) 261-2640 Fax: (412) 391-0221 E-mail: m.henny@hennylaw.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 19 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/pawb11-25202.pdf The petition was signed by Rajeet Sanahu, managing member. GATEWAY HOTEL: Can Continue Using Cash Collateral Until Oct. 31 --------------------------------------------------------------- On Aug. 3, 2011, the U.S. Bankruptcy Court for the District of Arizona approved the stipulation between debtor Gateway Hotel, LLC, and lender 2010-1 SFG Venture LLC, as successor in interest to Specialty Finance Group LLC, extending the Debtor's use of cash collateral until Oct. 31, 2011. As reported in the TCR on May 16, 2011, the Bankruptcy Court entered a final order authoring the Debtor's use of cash collateral until the earliest to occur of: (i) the effective date of any confirmed plan of reorganization; (ii) appointment of Chapter 11 Trustee or examiner; (iii) conversion of this case to a case under Chapter 7 of the Bankruptcy Code; (iv) dismissal of this case; (v) July 30, 2011, and (vi) the Debtor's breach of any of the provisions of the order. The final order further provides that prior to July 30, 2011, and to the extent the Debtor has not otherwise breached any of the provisions of the final order, the Debtor may seek approval from the Bankruptcy Court for the continued use of Cash Collateral About Gateway Hotel Phoenix, Arizona-based Gateway Hotel, LLC -- aka Hilton Garden Inn and Hilton Garden Inn Phoenix Airport North -- is primarily engaged in the hotel and restaurant business. It filed for Chapter 11 bankruptcy protection (Bankr. D. Ariz. Case No. 11- 08302) on March 29, 2011. Robert J. Miller, Esq., Bryce A. Suzuki, Esq., Kyle S. Hirsch, Esq., at Bryan Cave LLP, serve as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliate Windsor Commercial Construction, LLC, filed a separate Chapter 11 petition on Oct. 13, 2009 (Bankr. D. Ariz. Case No. 09-25724). GENERAL MOTORS: Ch. 11 Judge Backs Away from $450MM Union Feud -------------------------------------------------------------- Samuel Howard at Bankruptcy Law360 reports that a New York bankruptcy judge overseeing the liquidation of General Motors Corp.'s remnants declined Tuesday to step in and adjudicate a dispute between the carmaker and a workers union over $450 million in retiree medical benefits. In a bench decision, U.S. Bankruptcy Judge Robert Gerber abstained from hearing the United Auto Workers' lawsuit pending in Michigan, even though it involved the 363 sale order of so-called Old GM's assets to the reorganized entity, according to Law360. About General Motors With its global headquarters in Detroit, Michigan, General Motors Company (NYSE:GM, TSX: GMM) -- http://www.gm.com/-- is one of the world's largest automakers, traces its roots back to 1908. GM employs 208,000 people in every major region of the world and does business in more than 120 countries. GM and its strategic partners produce cars and trucks in 30 countries, and sell and service these vehicles through the following brands: Baojun, Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall, and Wuling. GM's largest national market is China, followed by the United States, Brazil, the United Kingdom, Germany, Canada, and Italy. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Co. was formed to acquire the operations of General Motors Corp. through a sale under 11 U.S.C. Sec. 363 following Old GM's bankruptcy filing. The U.S. government once owned as much as 60.8% stake in New GM on account of the financing it provided to the bankrupt entity. The deal was closed July 10, 2009, and Old GM changed its name to Motors Liquidation Co. New GM has a 'BB-' corporate credit rating from Standard & Poor's and a 'BB-' issuer default rating from Fitch. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on June 1, 2009. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Garden City Group is the claims and notice agent of the Debtors. The U.S. Trustee has appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP serve as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long serve as counsel regarding supplier contract matters. FTI Consulting, Inc., serves as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represents the Asbestos Committee. Legal Analysis Systems, Inc., serves as asbestos valuation analyst. The Bankruptcy Court entered an order confirming the Debtors' Second Amended Joint Chapter 11 Plan on March 29, 2011. The Plan was declared effect on March 31. HARVEST OAKS: Motion for Relief of Stay on Shopping Center Denied ----------------------------------------------------------------- The Hon. Stephani W. Humrickhouse of the U.S. Bankruptcy Court for the Eastern District of North Carolina denied CSMC 2006-C5 Strickland Road, LLC, through its special servicer, LNR Partners, LLC's motion for relief from the automatic stay in Harvest Oaks Drive Associates, LLC's property. CSMC sought relief from the automatic stay pursuant to section 362(d)(2) of the Bankruptcy Code to resume foreclosure on the Debtor's shopping center in Raleigh, North Carolina. CSMC holds a security interest in the shopping center, well as in the Debtor's leases and rent proceeds. CSMC contended that the stay must be lifted because the Debtor does not have equity in the property, and the property is not necessary to an effective reorganization. The Court said that based on the Debtor's stipulation that it lacks equity at present, CSMC's burden is satisfied, and the first requirement is resolved in CSMC's favor. As to the second requirement, whether the property is necessary for an effective reorganization, the Court finds that the Debtor has demonstrated that it can accomplish an effective reorganization within a reasonable time. First, the Debtor has improved its occupancy rate from approximately 50-58% in April 2010, to approximately 85- 87% as of the June 9, 2011. Given this upward trend, it appears possible that the occupancy rate may continue to increase between now and the confirmation hearing as expected by the Debtor. In addition, the Debtor has decreased its labor expenses by eliminating an employee making a salary of $5,000 per month, and the principal has elected to forego his monthly draw of $5,000, at least in the first several months, if not for a longer period of time. The Debtor's principal, Max Barbour testified that expenses will be reduced further by conserving energy and operating the shopping center efficiently as possible. Further, the confirmation hearing date in the case is approaching, and will provide a more suitable platform for addressing many of CSMC's concerns if they remain at that time. Although CSMC asserts that the Court must consider the plan as filed in determining whether the likelihood of an effective reorganization, the Code permits the Debtor to amend its proposed plan at any time before confirmation, long as it meets the requirements of sections 1122 and 1123 of the Bankruptcy Code. As reported in the Troubled Company Reporter on Aug. 19, 2011, the Debtor filed on Aug. 12, a Second Amended Disclosure Statement and Second Amended Plan of Reorganization. The Plan contemplates a reorganization and continuation of the Debtor's business. Certain creditor claims will be satisfied from income earned through the continued operations of the Debtor's business. About Harvest Oaks Harvest Oaks Drive Associates, LLC, owns a shopping center in North Raleigh located at 9650 Strickland Road and 8801 Lead Mine Road, in Raleigh, North Carolina. The Shopping Center has numerous tenants that include chain stores such as the Kerr Drug and the UPS store, and local businesses such as restaurants, shops, and other retail businesses. The Company filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.C. Case No. 10-03145) on April 21, 2010. Trawick H Stubbs, Jr., Esq., at Stubbs & Perdue, P.A., assists the Company in its restructuring effort. In its schedules, the Company disclosed $15,832,000 in assets and $14,634,161 in debts HASSEN IMPORTS: City of West Covina Wants Asset Recovered --------------------------------------------------------- The city of West Covina, California, asks the U.S. Bankruptcy Court for the Central District of California to initiate and prosecute to judgment the avoidance action on behalf of Hassen Imports Partnership's estate's behalf and benefit. The Debtor owns a parcel of commercial real estate fronting the I-10 Freeway in West Covina (Garvey Ave. North Property). The Clippinger Mazda autodealership occupies the site. The property is not included in the materials submitted with the Chapter 11 petition. The motion is intended to recover, and preserve for the Debtor's bankruptcy estate an $8,000,000 real estate asset that the Debtor is attempting to conceal from its creditors and from the Court. According to the City, as the trial date approached in a Superior Court lawsuit brought against HIP by the City of West Covina, the president of HIP's general partner Ziad Alhassen, created a shell entity called 2939 E. Garvey Road, LLC and then quickly transferred legal title to the property from HIP to that new entity, which is also controlled by Mr. Alhassen. This was a fraudulent conveyance. Following HIP's fraudulent conveyance of the Garvey Ave. North Property, the City's state court lawsuit proceeded to trial, resulting in a judgment that HIP is liable to the City in the amount of $7,586,603, and granting the City the right to judicially foreclose on the real estate owned by HIP and encumbered by trust deeds in favor of the City. The City is a subordinated junior lien holder on its real estate security. Due to an increase in the total amount of the senior secured debt with priority over the City's liens and due to a decline in the value of the security property, the City is most probably undersecured at this time The City Notes that avoidance of the fraudulent conveyance of the Garvey Ave. North Property and recovery of the unencumbered real property by the Debtor's estate will have an enormous impact on the entire proceeding, as it would provide assets of sufficient value to repay all of HIP's creditors in full. The City reserves the right to seek reimbursement of expenses associated with the avoidance action under section 503(b)(3)(B) of the Bankruptcy Code. The City of West Covina and City of West Covina Community Development Commission are represented by: Arnold Alvarez-Glasman, Esq. City Attorney of the City of West Covina ALVAREZ-GLASMAN & COLVIN 13181 Crossroads Parkway North, Suite 400 - West Tower City of Industry, CA 91746 Tel: (562) 699-5500 E-mail: aglasman@agclawfirm.com Stephen T. Owens, Esq. James H. Broderick, Jr., Esq. SQUIRE, SANDERS & DEMPSEY (US) LLP 555 South Flower Street, 31st Floor Los Angeles, CA 90071 Tel: (213) 624-2500 Fax: (213) 623-4581 E-mail: stephen.owens@ssd.com james.broderick@ssd.com Jordan A. Kroop, Esq. SQUIRE, SANDERS & DEMPSEY (US) LLP One East Washington St., Suite 2700 Phoenix, AZ 85004 Tel: (602) 528-4000 E-mail: jordan.kroop@ssd.com About Hassen Imports Partnership Hassen Imports Partnership filed a Chapter 11 petition (Bankr. C.D. Calif. Case No. 11-42068) in Los Angeles, California, on July 27, 2011. Marina Fineman, Esq., at Stutman Treister & Glatt, serves as counsel to the Debtor. The Debtor disclosed $9,238,486 in assets and $37,555,776 in liabilities as of the Chapter 11 filing. HUDSON HEALTHCARE: Committee Wants Sills Cummis as Counsel ---------------------------------------------------------- The Official Committee of Unsecured Creditors of Hudson Healthcare, Inc., seeks to retain Sills Cummis & Gross P.C. as its counsel, nunc pro tunc to Aug. 12, 2011. Sills Cummis & Gross will render services, including: * Provide legal advice with respect to the Creditors' Committee's rights, powers, and duties in this case; * Prepare all necessary applications, answers, responses, objections, orders, reports, and other legal papers; * Represent the Creditors' Committee in any and all matters arising in this case; * Assist the Creditors' Committee in its investigation and analysis of the Debtor; * Represent the Creditors' Committee in all aspects of any confirmation proceedings; and * Perform all other legal services for the Creditors' Committee that may be necessary or desirable in this case. The firm will be paid on an hourly basis and reimbursed of actual, necessary expenses. The firm's current hourly rates are: Member $395 - $775 Of Counsel $315 - $675 Associate $265 - $475 Paralegal $125 - $295 Based on the affidavit of Andrew H. Sherman, the Creditors Committee believes that the firm does not hold or represent any interest adverse to the Debtor or its estate, its creditors, or any other party-in-interest and that the Firm is a disinterested person as the term is defined in Section 101(14) of the Bankruptcy Code. About Hudson Healthcare Hudson Healthcare Inc. is the nonprofit operator of Hoboken University Medical Center in Hoboken, New Jersey. Hudson Healthcare filed for Chapter 11 protection (Bankr. D. N.J. Case No. 11-33014) in Newark on Aug. 1, 2011, estimating assets and debt of less than $50 million. Affiliate Hoboken Municipal Hospital Authority also sought Chapter 11 protection. Judge Donald H. Steckroth presides over the cases. Attorneys at Trenk, Dipasquale, Webster, et al., serve as counsel to the Debtor. Epiq Bankruptcy Solutions, LLC 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. IMUA BLUEHENS: Can Hire O'Connor Playdon as General Counsel ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of Hawaii has authorized Imua Bluehens, LLC to employ O'Connor Playdon & Guben LLP as its general counsel, effective as of June 17, 2011. Compensation and reimbursement of expenses are subject to further Court approval under Section 330 of the Bankruptcy Code and applicable local rules and guidelines. The firm can be contacted at: Jerrold K. Guben, Esq. Jeffery S. Flores, Esq. O'CONNOR PLAYDON & GUBEN LLP 733 Bishop Street, 24th Floor Honolulu, Hawaii 96813 Tel: (808) 524-8350 Fax: (808) 531-8628 E-mail: jkg@opglaw.com jsf@opglaw.com Honolulu, Hawaii-based Imua Bluehen, LLC, owns the Laniakea Plaza, a commercial retail operation. Imua Bluehens filed for Chapter 11 bankruptcy (Bankr. D. Hawaii Case No. 11-01721) on June 17, 2011. Judge Robert J. Faris presides over the case. In its petition, the Debtor estimated assets and debts of $10 million to $50 million. The petition was signed by James K. Kai, manager. INNKEEPERS USA: Objects to Cerberus' $20-Mil. Refund Request ------------------------------------------------------------ Michael Bathon at Bloomberg News reports that Innkeepers USA Trust objected to a demand from Cerberus Capital Management LP and Chatham Lodging Trust to recover a $20 million deposit for their now disputed plan to acquire 64 of the bankrupt company's hotels for $1.12 billion. Cerberus and Chatham have demanded their $20 million deposit back. In an Aug. 19 letter to Wells Fargo, they demanded that 90% be returned to Cerberus and 10% be returned to Chatham. According to the Bloomberg report, Innkeepers objected, saying in a separate letter to Wells Fargo "there has not been an occurrence of any condition, change, or development that could reasonably be expected to have a material adverse effect" on its business since the deal was agreed to in May. As a result, Wells Fargo must keep the money until a court rules on the dispute, Innkeepers said. The Wall Street Journal's Mike Spector and Dow Jones Newswires' Eric Morath report that a person familiar with the matter said Cerberus Capital Management LP remains interested in buying 64 Innkeepers USA Trust hotels for a lower price than the private- equity firm had agreed to in a previous deal. A source said Innkeepers' board hasn't yet decided on what actions to take. Innkeepers expects to keep the $20 million deposit Cerberus and Chatham made "at the very minimum," this person said. Innkeepers also plans to hold discussions with other possible buyers for the hotels, which operate under brands such as Marriott and Hyatt, the person said. Botched Sale Could Cut Legal Fees Bloomberg News also reports that Innkeepers creditor Midland Loan Services questioned a request for fees from Innkeepers bankruptcy counsel Kirkland & Ellis LLP, saying Innkeepers' exit from bankruptcy was now uncertain. Midland, servicer of an $825 million mortgage loan, said Kirkland & Ellis's request for $1.6 million should be partially held back given uncertainties for all of Innkeepers' interrelated reorganization plans. Cerberus and Chatham's announcement that they'll terminate the purchase agreement raises "the question of whether such plans will become effective," lawyers for Midland wrote. Cerberus-Backed Plan Collapses In June 2011, the Bankruptcy Court confirmed Innkeepers' chapter 11 plan of reorganization. The Plan is premised on the sale of the Company's hotel portfolio. A joint venture between the private-equity firm Cerberus Capital Management, L.P. and the real estate investment trust Chatham Lodging agreed to purchase for roughly $1.12 billion the equity in entities that own and operate 65 of the Company's hotels. Cerberus and Chatham agreed to pay $400.5 million cash and assume about $723.8 million mortgage debt for the hotels. Chatham Lodging also agreed to purchase for $195 million, five of the Company's hotels that serve as collateral for loan trusts serviced by LNR Partners LLC. The deal for the five hotels closed in July 2011. Cerberus and Chatham on Aug. 19 terminated a deal to acquire a portfolio of Innkeepers USA Trust's hotels. In a statement, Cerberus and Chatham said they had abandoned the deal "as a result of the occurrence of a condition, change or development that could reasonably be expected to have a material adverse effect" on Innkeepers' business, operations or financial condition, among other things. The deal had a Sept. 15, 2011 deadline to close. Cerberus and Chatham are required to pay a $20 million termination fee under the bankruptcy court-approved asset purchase agreement. Innkeepers insists that no changes have occurred to the hotel owner's business that would trigger the "material adverse effect" clause in the buyout's contract. About Innkeepers USA Trust Innkeepers USA Trust is a self-administered Maryland real estate investment trust with a primary business focus on acquiring premium-branded upscale extended-stay, mid-priced limited service, and select-service hotels. Innkeepers, through its indirect subsidiaries, owns and operates an expansive portfolio of 72 upscale and mid-priced extended-stay and select-service hotels, consisting of approximately 10,000 rooms, located in 20 states across the United States. Apollo Investment Corporation acquired Innkeepers in June 2007. Innkeepers USA Trust and 91 affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 10-13800) on July 19, 2010. The Company's consolidated assets for 2009 totaled approximately $1.5 billion. As of July 19, 2010, the Company and its affiliates have incurred $1.29 billion of secured debt. Paul M. Basta, Esq., at Kirkland & Ellis LLP, in New York; Anup Sathy, P.C., Esq., Marc J. Carmel, Esq., at Kirkland & Ellis in Chicago; and Daniel T. Donovan, Esq., at Kirkland & Ellis in Washington, D.C., serve as counsel to the Debtors. AlixPartners is the restructuring advisor and Marc A. Beilinson is the chief restructuring officer. Moelis & Company is the financial advisor. Omni Management Group, LLC, is the claims and notice agent. Attorneys at Morrison & Foerster, LLP, represent the Official Committee of Unsecured Creditors. INTL RARITIES: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: International Rarities Corp. 331 2nd Avenue South, Suite 410 Minneapolis, MN 55401 Bankruptcy Case No.: 11-45512 Chapter 11 Petition Date: August 19, 2011 Court: United States Bankruptcy Court District of Minnesota (Minneapolis) Judge: Robert J. Kressel Debtor's Counsel: Thomas G. Wallrich, Esq. HINSHAW & CULBERTSON LLP 333 South Seventh Street, Suite 2000 Minneapolis, MN 55402 Tel: (612) 333-3434 E-mail: twallrich@hinshawlaw.com Scheduled Assets: $1,353,295 Scheduled Debts: $3,025,921 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mnb11-45512.pdf The petition was signed by Stephen Hastings, president. JAZS PIZZA: Case Summary & 8 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Jazs Pizza, Inc. dba Domino's Pizza 742 Eastlake Drive Spring Creek Drive, NV 89815 Bankruptcy Case No.: 11-52639 Chapter 11 Petition Date: August 18, 2011 Court: United States Bankruptcy Court District of Nevada (Reno) Judge: Bruce T. Beesley Debtor's Counsel: Gerry G. Zobrist, Esq. GERRY G. ZOBRIST, LTD. 5440 West Sahara Ave., Ste. 206 Las Vegas, NV 89146 Tel: (702) 656-5156 Fax: (702) 656-5157 E-mail: gerry@zobristlaw.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's eight largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nvb11-52639.pdf The petition was signed by Chad Wolster, president. J.C. EVANS: Can Hire Counsel and Financial Advisors --------------------------------------------------- The Honorable Craig A. Gargotta authorized JCE Delaware, Inc. and its debtor affiliates to employ (i) Cox Smith Matthews Incorporated as counsel, effective as of the Petition Date, and (ii) Burnham Securities Inc. and Reeves, Snyder & Harthcock, LLP as their financial advisors, nunc pro tunc to the Petition Date. The Court considered the objections by the U.S. Trustee and First State Bank Central Texas to certain aspects of the application for financial advisors, and finds that both Burnham Securities and RSH are eligible for employment by the Debtors, pursuant to Section 327(a) of the Bankruptcy Code. All requests of Burnham Securities and RSH for payment of indemnity, contribution, or otherwise pursuant to the indemnification provisions of certain agreements will be made by means of an interim or final fee application and will be subject to the approval and review by the Court to ensure that payment conforms to the terms of the indemnity and is reasonable. Cox Smith Matthews can be contacted at: Mark E. Andrews, Esq. George H. Tarpley, Esq. Stephen K. Lecholop II, Esq. COX SMITH MATTHEWS INCORPORATED 1201 Elm Street, Suite 3300 Dallas, Texas 75270 Tel: (214) 698-7800 Fax: (214) 698-7899 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. JAMESTOWN MALL: Gets 90-Day Extension to Satisfy $2 Million Loan ---------------------------------------------------------------- Lisa Brown at STLToday.com reports that Jamestown Mall's owner has a 90-day reprieve to satisfy a $2 million loan or the shopping center will face foreclosure. According to the report, Jamestown Mall's New York-based owner, Jamestown Mall Realty Management LLC, filed for Chapter 11 bankruptcy to halt foreclosure proceedings brought by its lender, MFC Real Estate LLC. MFC alleged the mall owner defaulted on a more than $2 million loan in June, and the mall was placed in receivership. The report notes in a hearing before Judge Charles Rendlen in the bankruptcy case, MFC's attorneys consented to halt foreclosure proceedings for 90 days, giving the mall's owner until mid- November to find a new buyer. "We're going to (delay) the foreclosure sale for 90 days, by consent, that's going to allow us some time to see if we can scare up a suitable buyer for the property or come to some other resolution with the lender, and failing that, they're going to have the right to proceed with the foreclosure," the report quotes Scott Greenberg, an attorney representing the mall's owner, at the hearing on Aug. 15, as saying. About Jamestown Mall Jamestown Mall Realty Management LLC is owner of the shopping center in Little Neck, N.Y. Jamestown Mall, which opened in 1973, saw its occupancy drop sharply in recent years, dipping below 44 percent in 2008. Jamestown Mall Realty Management LLC bought the mall for $3.3 million in 2009. Some other entities, such as Macy's, own the anchor tenant spaces at the 1.25 million square foot shopping center. The Company filed for Chapter 11 protection (Bankr. E.D. Miss. Case No. 11-48354) on Aug. 8, 2011, with Judge Charles E. Rendlen III presiding. Keith D. Price, Esq., and Scott A. Greenberg, Esq., at Sandberg Phoenix & Von Gontard, represents the Debtor. The Debtor estimated assets and debts of between $1 million and $10 million. JEFFREY J BERTRAND: Claims Over Tug Boat Non-Dischargeable ---------------------------------------------------------- Louisiana Marine Towing, LLC, v. Jeffrey J. Bertrand, Adv. Proc. No. 10-05032 (Bankr. W.D. La.), seeks a determination that the debts allegedly owed by Jeffrey J. Bertrand are nondischargeable under 11 U.S.C. Sections 523(a)(2) and 523(a)(4). In an Aug. 19, 2011 Memorandum Ruling, a copy of which is available at http://is.gd/sdPRkrfrom Leagle.com, Bankruptcy Judge Robert Summerhays granted Louisiana Marine relief in part under 11 U.S.C. Sec. 523(a)(2). In 2008, Louisiana Marine entered into an agreement with a company owned and operated by Mr. Bertrand, Inspection Construction Unlimited, for the construction of a tug boat known as the M/V Lady Lauren. Louisiana Marine made multiple progress payments to ICU for the Lady Lauren totaling $1.1 million. The last two progress payments of $165,000 and $110,000 were made on Jan. 28, 2009, and March 30, 2009. According to Louisiana Marine, the last two progress payments were made only after Mr. Bertrand personally represented that all of ICU's vendors and subcontractors for the Lady Lauren had been paid. Louisiana Marine contends that, despite these representations, subcontractors and vendors who purportedly provided labor and materials in the construction of the Lady Lauren filed liens for amounts that ICU did not pay totaling $138,984.40. Louisiana Marine and ICU also had preliminary discussions about the construction of a second tug boat that was to be called the M/V Miss Cricket. Although the parties never entered into a formal contract with respect to the Miss Cricket, Louisiana Marine agreed to pay ICU $200,000 as a deposit to purchase steel for the construction of the Miss Cricket. According to Louisiana Marine, Bertrand and ICU used less than half of the $200,000 steel deposit to purchase steel. Instead, Louisiana Marine contends that Mr. Bertrand and ICU used the remaining amounts for unauthorized expenditures. The Court held that the amounts paid by Louisiana Marine on account of claims and liens filed against the Lady Lauren are nondischargeable under 11 U.S.C Sec. 523(a)(2)(A). The Court will hold a telephonic status conference for 9:00 a.m. on Sept. 23, 2011, to set deadlines for additional submissions and, if necessary, to set an evidentiary hearing on liquidating the amount of damages subject to the Court's nondischargeability finding. The court will initiate the telephone conference. In all other respects, the relief requested by Louisiana Marine in its complaint is denied. Jeffrey J. Bertrand Sr. and Karen T. Bertrand filed for Chapter 11 bankruptcy protection (Bankr. W.D. La. Case No. 10-50008) in 2010. KEYUAN PETROCHEMICALS: Gets NASDAQ Delinquency Notice ----------------------------------------------------- Keyuan Petrochemicals, Inc. has received an additional notice from NASDAQ stating the Company is not in compliance with Listing Rule 5250(c)(1) for continued listing due to not filing its Form 10-Q for the three months ended June 30, 2011 by the due date of August 15, 2011. As previously announced, the Company received notices from the NASDAQ on April 7, 2011 and on May 19, 2011, stating that the Company was not in compliance with Listing Rule 5250(c)(1) for continued listing due to not filing its Form 10-K for the year ended December 31, 2010 by the due date of March 31, 2011, and its Form 10-Q for the three months ended March 31, 2011 by the due date of May 16, 2011, respectively. Management would like to remind shareholders that on July 26th the NASDAQ Hearings Panel granted a stay of delisting of the Company's securities pending the Company's scheduled hearing to be held on August 25, 2011. As a result, the Company's securities will remain listed, however halted, on the NASDAQ Global Select Market pending further action by the Hearings Panel. Keyuan Petrochemicals, Inc., established in 2007 and operating through its wholly-owned subsidiary, Keyuan Plastics, Co. Ltd., is located in Ningbo, China and is a leading independent manufacturer and supplier of various petrochemical products. Having commenced production in October 2009, Keyuan's operations include an annual petrochemical manufacturing design capacity of 720,000 MT for a variety of petrochemical products, with facilities for the storage and loading of raw materials and finished goods, and a technology that supports the manufacturing process with low raw material costs and high utilization and yields. In order to meet increasing market demand, Keyuan plans to expand its manufacturing capacity to include a SBS production facility, additional storage capacity, a raw material pre-treatment facility, and an asphalt production facility. KOREA TECHNOLOGY: Case Summary & 18 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Korea Technology Industry America, Inc. aka KTIA Attn: Soung Joon Kim 1245 East Brickyard Road, Suite 110 Salt Lake City, UT 84106 Bankruptcy Case No.: 11-32259 Chapter 11 Petition Date: August 22, 2011 Court: U.S. Bankruptcy Court District of Utah (Salt Lake City) Judge: R. Kimball Mosier Debtor's Counsel: Steven J. McCardell, Esq. DURHAM JONES & PINEGAR 111 East Broadway, Suite 900 P.O. Box 4050 Salt Lake City, UT 84110-4050 Tel: (801) 415-3000 Fax: (801) 415-3500 E-mail: smccardell@djplaw.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Soung Joon Kim, chief operating officer. Debtor's List of 18 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Gavilan Petroleum, LLC Loan $218,919 1245 E. Brickyard Road, Suite 110 Salt Lake City, UT 84106 Pyo, Jae-wook Wages $79,673 308-3504 Parkrio Apt. Shincheon-Dong Songpa-Gu Seoul, 138-932 Korea Ernst & Young, LLP Services $73,966 8415 Datapoint Drive, Suite 900 San Antonio, TX 78229 Shin, Sung Wages $48,563 CBIZ Accounting Tax & Advisory Services $40,705 Services Seo, Bong-kook Wages $37,980 Kim, Jung-hee Wages $20,440 Haynie & Company Services $20,169 Bankruptcy Estate of Daniel Wages $18,557 Schwendiman Lee, Seong Weon Wages $17,683 Rock Law Office, P.C. Services $16,310 Park, Jeong-bin Wages $15,634 Shin, Bae-Gyun Debt $15,000 Kim, Seoung-hyun Wages $7,631 Jang, Jinwoo Wages $6,116 Shin, Yong-in Wages $4,000 Kim, Bum-soo Wages $529 Holme Roberts & Owen LLP Services $124 KT SPEARS: Taps Professional Realty to Market Real Property ----------------------------------------------------------- KT Spears Creek, LLC, asks the U.S. Bankruptcy Court for the District of South Carolina for permission to employ Professional Realty, Inc., as real estate agent. The RE Agent will, among other things: -- prepare and distribute detailed marketing materials to potential purchasers and lessees for all of the Debtor's real property; -- provide weekly updates regarding the marketing of the Debtor's real property; and -- utilize Loopnet and targeted e-mail to specific end users and developers to market all of the Debtor's real property, which will include contacting potential out parcel users regarding the availability of all of the Debtor's real property. George M. Lee, III, broker-in-charge of Professional Realty, tells the Court that the RE Agent rates are: a. 6% on transactions up to $1,000,000; b. 4% on transactions between $1,000,000 and $4,000,000; and c. 3.5% on transactions above $4,000,000. RE Agent waives any and all prepetition amounts owed it by the Debtor. The Debtor no longer owes RE Agent any amount for prepetition services. Mr. Lee assures the Court that the firm is a "disinterested person" as that term is defined in section 101(14) of the Bankruptcy Code. Mr. Lee can be reached at: PROFESSIONAL REALTY, INC. 8910 Two Notch Road, Suite 302 Columbia, SC 29223 Tel: (803) 419-4020 About KT Spears KT Spears Creek, LLC, in Houston, Texas, filed for Chapter 11 bankruptcy (Bankr. S.D. Tex. Case No. 11-33991) on May 3, 2011, Judge Letitia Z. Paul presiding. The Debtor estimated $10 million to $50 million in both assets and debts. The petition was signed by Kyle D. Tauch, sole member. The Hon. Letitia Z. Paul transferred the Debtor's Chapter 11 case to the Bankruptcy Court for the District of South Carolina. The Case No. is 11-04241. The case was assigned to Chief Judge John E. Waites. Daniel J. Reynolds, Jr., Esq., and G. William McCarthy, Jr., Esq., at McCarthy Law Firm, LLC, represent the Debtor as counsel. LA VILLITA: ORIX Capital Wants Disclosure Statement Disapproved --------------------------------------------------------------- Creditor ORIX Capital Markets, LLC, asks the U.S. Bankruptcy Court for the Western District of Texas to deny approval of the Disclosure Statement explaining La Villita Motor Inns JV's Chapter 11 Plan dated June 17, 2011. ORIX Capital as the special servicer for U.S. Bank National Association, as trustee for GS Mortgage Securities Corporation II, Commercial Mortgage Pass-Through Certificates, Series 1999-C1, holds a final judgment against the Debtor (affirmed by the Supreme Court of Texas), in the amount, as of the Petition Date, of not less than $8,564,759, and which aggregates in excess of $9,155,000 as of July 1, 2011. ORIX's claim is secured by substantially all of the Debtor's assets and continues to accrue interest, attorneys' fees and expenses. According to Orix, the Debtor's Disclosure Statement must not be approved because it provides false, inadequate and misleading information regarding a Chapter 11 plan that is patently and facially unconfirmable. The Plan is based on the Debtor's attempt to re-litigate and negate ORIX's right to recover its judgment and related claims, including claims for prepetition interest, costs and fees owing by the Debtor. Orix adds that the Plan also: a. acknowledges that the Debtor may not have adequate funds to pay administrative expense priority claims upon its effective date, and contains provision for the payment of certain of those claims (professional fee claims) over time, in quarterly installments; b. disallows portions of ORIX's prepetition claim that have been finally adjudicated by the Texas state courts, even if the Debtor defaults in performing the Plan; c. enjoins claims against non-debtor officers, directors, shareholders, employees, other responsible persons of the Debtor, including Liaquat Pirani. Although the Plan styles this injunction as a temporary injunction, it is to persist so long as the Debtor complies with the Plan, and thus, is indeterminate, open ended and also exceeds this Court's jurisdiction; d. violates the Absolute Priority Rule in allowing equity holders to retain their interests in the Debtor without providing for the payment in full, with interest, of all senior classes of creditors; e. provides for a "limited channeling injunction" structure without any trust provision or other adherence to the mandates of section 524(g) of the Bankruptcy Code; and f. provides exculpation, as to all Bankruptcy Case matters (other than for willful misconduct and gross negligence) to members of the Debtor, its officers, directors, employees, professionals, and any of their former or current respective members, agents, representatives, affiliates, advisors, agents, and attorneys. Orix notes that in light of the flawed Plan, it filed two requests for alternative relief: (i) a motion for relief from the automatic stay; and (ii) a motion for dismissal or conversion of Bankruptcy Case. The Plan According to the Disclosure Statement, the Plan proposes to pay the lender with a five-year Class 2 Note. The Plan proposes to pay the holders of General Unsecured Claims over a period of not more than two years from the Effective Date. All cash necessary for the Reorganized Debtor to make payments pursuant to the Plan will be obtained from the Debtor's existing Cash Balances and the operations of the Debtor or Reorganized Debtor. Under the Plan, the lender will receive the Class 2 Note and related security documents containing these terms: a) Preservation of Liens. The Class 2 Note will remain secured by all liens, security interests, other interests, and rights in, to and against all property of the Debtor and the estate securing the Allowed Lender Secured Claim under the Lender Loan Documents determined to be valid Liens by Final Order. b) The original principal balance of the Class 2 Note will be an amount equal to the Allowed Class 2 Claim plus any accrued interest from the date the Class 2 Claim is Allowed through the date of issuance of the Class 2 Note, minus all adequate protection payments made by the Debtor from the Petition Date through the date of issuance of the Class 2 Note, minus all Pendency Interest Payments. c) Interest will accrue on the Class 2 Note after the date of issuance of the Class 2 Note, at the rate of 5% simple interest per annum. d) The Class 2 Note will be amortized over 25 years. e) The term of the Class 2 Note will be five years. f) The Class 2 Note will be paid in equal monthly installments of principal and interest commencing 30 days following the date of issuance of the Class 2 Note and continuing on the same day of each successive month thereafter for 59 months with a final balloon payment on the 60th month equal to the remaining balance due under the Class 2 Note. Each holder of an Allowed Class 3 General Unsecured Claims will receive one 100% of their total Allowed Class 3 Claim which will be paid in equal monthly installments. All Insider Claims will be converted to equity on the Effective Date in full and final satisfaction, discharge, and release of the Insider Claims. Class 5 Equity Interests will retain their Equity Interests in the Debtor as they existed on the Petition Date. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/LAVILLITA_DS.pdf Disclosure Statement Hearing The Court has rescheduled to Sept. 26, 2011, at 9:30 a.m., the hearing to consider adequacy of the Disclosure Statement explaining the Debtor's Chapter 11 Plan. At the hearing, the Court will also consider ORIX's requests for relief from stay and for dismissal or conversion of the Debtor's case to one under Chapter 7 of the Bankruptcy Code. The hearing was originally scheduled for Aug. 24. About La Villita Motor Inns JV San Antonio, Texas-based La Villita Motor Inns JV is a joint venture, formed on or about April 14, 1980, that owns and operates a hotel located at 100 La Villita in San Antonio, Texas, known as the Riverwalk Plaza Hotel. It filed for Chapter 11 bankruptcy protection (Bankr. Case No. 10-54864) on Dec. 17, 2010. Debra L. Innocenti, Esq., at Oppenheimer Blend Harrison & Tate, serves as the Debtor's bankruptcy counsel. The Debtor estimated assets at $10 million to $50 million and debts at $1 million to $10 million. LEGENDALE LIMITED: Case Summary & Largest Unsecured Creditor ------------------------------------------------------------ Debtor: Legendale Limited Partnership 157 Skyland Boulevard Tijeras, NM 87059 Bankruptcy Case No.: 11-13758 Chapter 11 Petition Date: August 18, 2011 Court: United States Bankruptcy Court New Mexico (Albuquerque) Judge: James S. Starzynski Debtor's Counsel: Ronald E. Holmes, Esq. THE LAW OFFICES OF RON HOLMES 112 Edith Blvd NE Albuquerque, NM 87102-3524 Tel: (505) 268-3999 Fax: (505) 268-3939 E-mail: ronholmes@ronholmes.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 In its list of 20 largest unsecured creditors, the Company placed only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ IHM Financial Corporation $2,387,527 4900 Scottsdale Road Suite 5000 Scottsdale, AZ 85251 The petition was signed by Bert Gearhart, general partner. LYMAN LUMBER: Committee Taps Fafinsky Mark as Bankruptcy Counsel ---------------------------------------------------------------- The Official Committee of Unsecured Creditors of Lyman Lumber Company, et al., asks the U.S. Bankruptcy Court for the District of Minnesota for authorization to retain Fafinsky, Mark & Johnson, P.A., as its bankruptcy counsel. Among others, FJM will: (a) consult with the debtor-in-possession and the Office of the United States Trustee regarding administration of the cases; (b) advise the Committee with respect to its rights, power and duties as they relate to the cases; (c) investigate the acts, conduct, assets, liabilities and financial condition of the Debtors; (d) assist the Committee in analyzing the Debtors' pre-petition and postpetition relationships with its creditors, equity interest holders, employees, and other parties in interest; and (e) assist and negotiate on the Committee's behalf in matters relating to the claims of the Debtors' other creditors. FMJ will be compensated at its standard hourly rates for engagements of this nature. Currently, the hourly rates for the bankruptcy and insolvency professionals expected to perform work on this case are: paralegals $150, associate attorneys range from $215 to $295, and partners $400. To the best of the Committee's and FMJ's knowledge, information and belief, FMJ does not represent any interest adverse to the Debtors' estate or its creditors in connection with these Chapter 11 cases, and FMJ is disinterested within the meaning of 11 U.S.C. Sections 327(a), 328 and 1103(b) and Bankruptcy Rule 2014. Proposed counsel for the Official Committee of Unsecured Creditors may be reached at: Connie A. Lahn, Esq. David E. Runck, Esq. Lorie A. Klein, Esq. FAFINSKY MARK & JOHNSON, P.A. 400 Flagship Corporate Center 775 Prairie Center Drive Eden Prairie, MN 55344 Tel: (952) 995-9500 Fax: (952) 995-9577 E-mail: Connie.Lahn@fmjlaw.com David.Runck@fmjlaw.com Lorie.Klein@fmjlaw.com About Lyman Lumber Lyman Lumber Company sells building supplies, such as framing beams, roofing materials, siding and drywall to residential builders. The 113-year old company and several affiliates sought Chapter 11 petition (Bankr. D. Minn. Lead Case No. 11-45190) on Aug. 4, 2011. Judge Dennis O'Brien presides over the cases. Cynthia A. Moyer, Esq., Douglas W. Kassebaum, Esq., James L. Baillie, Esq., and Sarah M. Gibbs, Esq., at Fredrikson & Bryon, P.A., serve as bankruptcy counsel. Lyman Lumber estimated $50 million to $100 million in assets and $100 million to $500 million in debts. The petition was signed by James E. Hurd, president and chief executive officer. The affiliates that filed for Chapter 11 are: Lyman Holding Company; Automated Building Components, Inc.; Building Material Wholesalers; Carpentry Contractors Corp.; Construction Mortgage Investors Co.; Lyman Development Co.; Lyman Lumber of Wisconsin, Inc.; Lyman properties LLC; Mid-America Cedar, Inc.; Woodinville Lumber, Inc.; and Woodinville Construction Services LLC. BGA Management, LLC d/b/a Alliance Management, which developed and executed a sale process and marketing strategy for the Debtors' assets, may be reached at: James Cullen ALLIANCE MANAGEMENT Carlson Towers 110 601 Carlson Parkway Minneapolis, MN 55305 Tel: 952-475-2225 http://www.alliancemgmt.com/ MADELINE P CORP: Case Summary & 10 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Madeline P. Corp. Paseo San Juan G-22 Calle Adoquines San Juan, PR 00926 Bankruptcy Case No.: 11-07058 Chapter 11 Petition Date: August 20, 2011 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Wigberto Lugo Mender, Esq. LUGO MENDER & CO Centro Internacional De Mercadeo Carr 165 Torre 1, Suite 501 Guaynabo, PR 00968 Tel: (787) 707-0404 E-mail: wlugo@lugomender.com Estimated Assets: $50,001 to $100,000 Estimated Debts: $1,000,001 to $10,000,000 Debtor-affiliate filing for Chapter 11: Petition Debtor Case No. Date ------ -------- ---- Ramoni Inc. 11-07059 08/20/2011 Assets: $1,000,001 to $10,000,000 Debts: $1,000,001 to $10,000,000 The petitions were asigned by Ramon Portela-Fernandez, president. A list of Madeline P. Corp.'s 10 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/prb11-07058.pdf A list of Ramoni's 11 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/prb11-07059.pdf MAJESTIC CAPITAL: Seeks to Extend Exclusivity to Dec. 28 -------------------------------------------------------- BankruptcyData.com reports that Majestic Capital filed with the U.S. Bankruptcy Court a motion to extend the exclusive period that the Company can file a Chapter 11 Plan and solicit acceptances thereof through Oct. 28, 2011 and Dec. 28, 2011, respectively. The Court scheduled a Sept. 13, 2011 hearing to consider the motion. About Majestic Capital Headquartered in Poughkeepsie, New York City, Majestic Capital, Ltd., fdba CRM Holdings, Inc., filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 11-36225) on April 29, 2011. Affiliates also sought Chapter 11 protection Bankr. S.D.N.Y. Case Nos. 11-36221 - 11-36234) on April 29, 2011. Bankruptcy Judge Cecelia G. Morris presides over the case. Thomas Genova, Esq., at Genova & Malin, Attorneys represents the Debtors in their restructuring effort. Murphy & King, P.C. serves as the Debtors' co-counsel. The Debtors tapped Michelman & Robinson, LLP, as special counsel, and Day Seckler, LLP, as accountants and financial advisors. The Debtor disclosed $436,191,000 in assets and $421,757,000 in liabilities as of Dec. 31, 2010. Bruce F. Smith, Esq., and Steven C. Reingold, Esq., at Jager Smith P.C. represent the Official Committee of Unsecured Creditors. The Committee has also tapped J.H. Cohn LLP as its financial advisors. MCDONALD BROTHERS: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: McDonald Brothers, Inc. P.O. Box 1606 Southern Pines, NC 28388 Bankruptcy Case No.: 11-81363 Chapter 11 Petition Date: August 22, 2011 Court: U.S. Bankruptcy Court Middle District of North Carolina (Durham) Debtor's Counsel: John A. Northen, Esq. Northen Blue, LLP P.O. Box 2208 Chapel Hill, NC 27514-2208 Tel: (919) 968-4441 E-mail: jan@nbfirm.com - and - Stephanie Osborne-Rodgers, Esq. NORTHEN BLUE, LLP P.O. Box 2208 Chapel Hill, NC 27514-2208 Tel: (919) 968-4441 E-mail: sor@nbfirm.com Scheduled Assets: $10,540,708 Scheduled Debts: $10,132,635 The petition was signed by Angus A. McDonald, Jr., president. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ IBSA -- $334,869 P.O. Box 2310 Smithfield, NC 27577 Cox Industries, Inc. -- $274,440 P.O. Box 1124 Orangeburg, SC 29116 NC Department of Revenue Sales Tax $175,000 501 N. Wilmington Street P.O. Box 25000 Raleigh, NC 27640-5000 Com Tech -- $167,733 Longleaf Truss Company -- $111,731 House Hasson Hardware -- $105,158 Colonial Materials -- $94,593 Weyerhauser NR Company -- $94,334 Diamond Hill Plywood Company -- $88,836 Interior Distributors, Inc. -- $86,565 Fay Block Materials -- $86,158 MW Windows & Ply Gem -- $79,894 Welco Lumber Corp. -- $68,767 Huttig Building Products -- $56,657 Cedar Creek, LLC -- $53,058 BB&T Bankcard Corporation -- $50,124 American Express -- $48,432 Jeld-Wen Millwork -- $47,316 Dunning Capital -- $45,000 Carolina Atlantic Dist. -- $41,496 MIRABILIS VENTURES: Judge Accepts Dismissal of Malpractice Suit --------------------------------------------------------------- Evan Weinberger at Bankruptcy Law360 reports that a Florida federal judge on Monday accepted the voluntary dismissal of a $200 million accounting malpractice lawsuit brought by the trustee overseeing the liquidation of Mirabilis Ventures Inc. less than a month after ruling that the claim could not be allowed. The trustee, R.W. Cuthill, agreed to drop his claims against Rachlin Cohen & Holtz LLP and its senior partner Laurie S. Holtz, after U.S. District Judge Gregory A. Presnell ruled in late July that the trustee could not pursue the $200 million claim. As reported in the Troubled Company Reporter on Aug. 1, 2011, District Judge Gregory A. Presnell said Mirabilis Ventures, Inc., cannot pursue recovery of $200 million in damages at trial in the lawsuit against its former accountants. Mirabilis is also barred from seeking recovery for the "adverse tax consequences, including interest and penalties," or the "legal and expert fees and costs" in the complaint. Judge Presnell said throughout the discovery period, Mirabilis relied on a bogus "calculation" -- which it has since abandoned -- of the $200 million -- which represents an allowed claim of the U.S. government pursuant to a settlement in the bankruptcy case -- and failed to produce any evidence supporting it. Mirabilis is one of a number of entities involved in an enormous tax fraud scheme masterminded by Frank Amodeo. In April 2008, the Government filed an in rem civil forfeiture action against Mirabilis, seeking to recover certain parcels of real estate that had been purchased by Mr. Amodeo. The Government alleged that Mr. Amodeo and (unidentified) co-conspirators had been involved in "a massive tax fraud, wire fraud, and money laundering scheme," that they had used a number of entities, including Mirabilis, to carry it out. The Government said the conspirators had knowingly failed to remit to the IRS payroll taxes totaling $181,807,552. The Government filed a motion to dismiss the Mirabilis bankruptcy, arguing that it had been filed in bad faith. Pursuant to a compromise, the Government agreed to drop its motion to dismiss, the parties agreed that the Government could obtain some but not all of the property in the Mirabilis bankruptcy estate, and Mirabilis agreed to the allowance of a $200 million unsecured forfeiture claim in favor of the Government. Mirabilis Ventures, Inc., v. Rachlin Cohen & Holtz, LLP and Laurie S. Holtz, Case No. 6:09-cv-271 (M.D. Fla.), was commenced Dec. 5, 2008, after Mirabilis had reached a compromise with the Government in the bankruptcy case, but before the deal was approved. In its Second Amended Complaint, Mirabilis asserts claims for professional negligence (Count I), breach of fiduciary duty (Count II); negligent supervision (Count III); and breach of fiduciary duty by aiding and abetting (Count IV). Count III is asserted against Rachlin; the other counts are asserted against both defendants. Mirabilis contends that the Defendants' actions caused the company to suffer "damage to [its] business [and] property, including an allowed claim in bankruptcy against it in the sum of Two Hundred Million Dollars ($200,000,000)," as well as "adverse tax consequences, including interest and penalties," and "legal and expert fees and costs." In a July 28, 2011 Order, Judge Presnell granted the Defendants' Motion in Limine to Exclude Evidence of Improper and Undisclosed Damages. The judge held that based on the information provided to the Defendants, no reasonable factfinder could determine Mirabilis's potential liability. A copy of Judge Presnell's ruling is available at http://is.gd/lgzKMNfrom Leagle.com. About Mirabilis Ventures Orlando, Florida-based Mirabilis Ventures Inc. is a private equity company, which acquired companies companies that has a strategic fit into its unique business model. Mirabilis and its related entity, Hoth Holdings, LLC, filed voluntary Chapter 11 petitions (Bankr. M.D. Fla. Case Nos. 08-04327 and 08-04328) on May 27, 2008. Another related entity, AEM, Inc., filed its Chapter 11 bankruptcy petition (Bankr. M.D. Fla. Case No. 08-04681) June 5, 2008. Elizabeth A. Green, Esq., and Jimmy D. Parish, Esq., at Latham Shuker Eden & Beaudine LLP, served as the Debtors' counsel. When the Debtors filed for protection from their creditors, they listed between $50 million and $100 million each in assets and debts. The Bankruptcy Court in October 2009 confirmed the joint amended plan of liquidation submitted by Mirabilis, Hoth and AEM. R. William Cuthill was named as president of Mirabilis to oversee the Debtors' liquidation. A full-text copy of the amended joint disclosure statement explaining the Debtors' plan of liquidation is available for free at http://bankrupt.com/misc/mirabilis.ds.pdf MOMENTA INC: Court Rejects Admin. Claim for Unreceived Goods ------------------------------------------------------------ Ningbo Chenglu Paper Products Manufacturing Co. seeks allowance of an administrative expense claim of $163,527.95 against Momenta Inc. with respect to goods that were ordered by the Debtor from Ningbo and delivered to the Debtor or its customers. The orders are detailed in six invoices: -- Invoices 4095 and 4096 detail shipments of goods from Ningbo, China to the Debtor's customer in Felixstowe, United Kingdom with balances due in the amount of $39,281.04 and $39,024.72 respectively. -- Invoice 4093 details a shipment of goods from Ningbo, China to the Debtor's customer in Southampton, United Kingdom with a balance due in the amount of $57,780. -- Invoice 4090 details a shipment of goods from Ningbo, China to the Debtor's customer in Montreal, Canada and has a balance due in the amount of $6,250.92. -- There is no record as to what happened to the shipments in invoices 4095, 4096, 4093 and 4090 -- Drop Shipments -- when they are arrived at Felixstowe, Southampton, and Montreal (i.e. were they placed in a warehouse, held by a customs agent, delivered to a common carrier, held by a bailee, etc.). In addition, samples worth $1,873.68 were delivered directly to the Debtor as part of the Drop Shipments. -- Goods in invoices 4104 and 4102 were delivered to the Debtor's warehouse and the invoices have balances due in the amount of $1,529.91 and $19,661.36 respectively. The United States Trustee and the Debtor object to the supplier's request. The Debtor concedes that all of the shipments were received within 20 days of the petition date and that the Samples, invoice 4104, and invoice 4102 give rise to an administrative expense claim of $23,070.95 since they were received by the Debtor within 20 days of the petition date. The parties dispute whether the Drop Shipments were "received by the debtor" within 20 days of the petition date within the meaning of 11 U.S.C. Sec. 503(b)(9) and whether any administrative expense claim should be disallowed under Sec. 502(d). In an Aug. 19, 2011 Memorandum Opinion, Bankruptcy Judge J. Michael Deasy held that the Drop Shipments were not "received by the debtor" as required by Sec. 503(b)(9), and therefore Ningbo's request for allowance of an administrative expense claim in connection with those shipments is disallowed. Ningbo's request for an administrative expense claim of $23,070.95, is allowed because it meets the requirements of Sec. 503(b)(9) and cannot be disallowed under Sec. 502(d). A copy of Judge Deasy's decision is available at http://is.gd/kdTAZffrom Leagle.com Charles R. Bennett, Jr., Esq. Christopher M. Condon, Esq. John C. Elstad, Esq. MURPHY & KING P.C. One Beacon Street, 21 Floor Boston, MA 02108 Tel: 617 226-3408 Fax: 617-423-0498 E-mail: crb@murphyking.com cmc@murphyking.com jce@murphyking.com Attorney for Ningbo is: David E. LeFevre, Esq. HAGE & HODES, P.A. 1855 Elm Street Manchester, NH 03104 Tel: 603-668-2222 Fax: 603-641-6333 E-mail: dleFevre@hagehodes.com About Momenta Inc. Based in Northwood, New Hampshire, Momenta Inc. filed for Chapter 11 bankruptcy protection on Oct. 23, 2010 (Bankr. D. N.H. Case No. 10-14548). Momenta Inc., formerly known as American Traditional Designs, resorted to Chapter 11 after losing a contract with Walmart, the Company's largest client, which provided about 30% of the company's revenue. Momenta is a scrapbook company. Products include paper craft supplies, stickers, stencils, albums, templates for digital scrapbook designs and stationery. Charles R. Bennett, Jr., Esq., Hanify & King, represents the Debtor. The Debtor estimated assets and debts between $1 million and $10 million in its petition. NATIONAL CENTURY: NY Pension Funds' Claims Dismissed ---------------------------------------------------- A group of pension funds led by the New York City Employees' Retirement System sought and obtained a ruling from the U.S. District Court for the Southern District of Ohio dismissing its claims against a former executive of National Century Financial Enterprises Inc. Rebecca Parrett, former vice-chairwoman of NCFE, was convicted on March 13, 2008, in federal court in Columbus, and was sentenced to 25 years in prison. She was one of the five executives accused of defrauding investors by diverting money for improper uses. The executives reportedly made up data in financial reports and moved money back and forth between accounts to conceal shortfalls in investor funds. Investors lost nearly $2 billion before NCFE went bankrupt in 2002. The pension funds' lawyer, Steven Fineman, Esq., at Lieff Cabraser Heimann & Bernstein LLP, in New York, said the funds "have no reasonable prospect of achieving a financial recovery" on their claims against Ms. Parrett given her status as a federal prisoner and her obligation through the NCFE criminal cases to forfeit $1.7 billion in property representing the proceeds of the conspiracy and to pay $2.3 billion in restitution. Since Ms. Parrett is the sole remaining defendant in the lawsuit, styled New York City Employees' Retirement System, et al. v. Bank One, N.A., et al., No. 03-CV-09973, dismissal of the pension funds' claims would conclude the case. Earlier, the pension funds entered into an agreement with the other defendants of the lawsuit, which called for the dismissal of their claims against NCFE principals, Lance Poulsen, Barbara Poulsen and Donald Ayers. In another development, the Ohio District Court ordered the dismissal of Beacon Group III-Focus Value Fund LP's claims against the Poulsens, Ms. Parrett, Kuld Corp. and Cheyenne-Blaze LLC. The dismissal comes after Beacon Group's announcement early last month that it would not be prosecuting its claims against the remaining defendants of its lawsuit. The lawsuit, styled Beacon Group III-Focus Value Fund, L.P. vs. Lance K. Poulsen, et al., is now closed. Poulsen to Prosecute Suit Vs. Bank One In accordance with the order issued by Judge James Graham on March 30, 2011, requiring Mr. Poulsen to show cause why the lawsuit against Bank One should not be dismissed, Mr. Poulsen advised the district court judge of his intention to proceed with his lawsuit against Bank One N.A. Mr. Poulsen said that he has already spent more than $4.9 million for his legal defense. Mr. Poulsen sued the bank for damages in connection with its alleged gross misconduct in the trusteeship of the securitization portfolio known as NPF XII. He alleged that he and four others were wrongfully convicted of numerous charges of investor fraud due to the bank's failure to do its responsibilities under the indenture. Amedisys, et al. Drop Objection Amedisys Inc., et al. withdrew their objection to JPMorgan Chase Manhattan Bank's motion for protective order in the state court case they filed against the bank. The plaintiffs previously asked the Ohio District Court to deny the motion, saying JPMorgan is not entitled to a protective order and should be required to participate in discovery. Credit Suisse Files Suggestion of Supplemental Authority Credit Suisse Securities (USA) LLC and Credit Suisse New York Branch filed court papers discussing the U.S. Supreme Court decision entered in the case Janus Capital Group Inc. v. First Derivative Traders, and the Sixth Circuit decision in Ashland Inc. v. Oppenheimer & Co., in connection with their motion for summary judgment. Credit Suisse Securities and Credit Suisse New York are both defendants of lawsuits filed by Pharos Capital Partners L.P. and a group of noteholders. Jeffrey Smith, Esq., at Bingham McCutchen LLP, in New York, said the Supreme Court's decision in the Janus case confirms that judgment should be entered dismissing the fraud-based claims of Pharos and the noteholders group. In the Janus case, the Supreme Court reversed a decision by the Court of Appeals for the Fourth Circuit which held Janus Capital Management LLC liable for false statements made in mutual fund prospectuses that affected the price of JCG's stock. It rejected arguments that Janus Capital Management's participation in preparing the prospectuses rendered it liable for making those statements. The prospectuses were filed by Janus Investment Fund, an entity owned by mutual fund investors and is administered by Janus Capital Management, a subsidiary of JCG. Mr. Smith argued that the Supreme Court's decision in the Janus case instructs that, with respect to Pharos' and the noteholders' fraud claims, statements made by NCFE are not properly attributable to Credit Suisse. "The Supreme Court's reasoning and holding in [Janus case] apply fully here. Credit Suisse cannot be held liable for misrepresentations made by NCFE," the lawyer said in court papers. Mr. Smith also argued that the Sixth Circuit's decision in the Ashland case also supports Credit Suisse's arguments. In the Ashland case, the Sixth Circuit affirmed a district court ruling dismissing Ashland's securities fraud claims because of its failure to adequately plead that it reasonably relied on Oppenheimer's alleged misrepresentation or that the defendant acted with scienter. Ashland, which invested in auction-rate securities (ARS), accused Oppenheimer of misrepresenting the safety and liquidity of the ARS market. According to Mr. Smith, the testimony of former NCFE employees confirms that Credit Suisse did not know about the company's fraud prior to its collapse. He pointed out that the fraud at NCFE was concealed from Credit Suisse and other market participants until late 2002 based on the testimonies of people who admitted of committing the crime. MetLife, et al. Respond In a statement with the Ohio District Court, Metropolitan Life Insurance Company and Lloyds TSB Bank plc dismissed Credit Suisse's arguments, saying the Janus case does not preclude the Ohio District Court from finding that Credit Suisse made the statements contained in documents that were distributed to investors. "Unlike the defendant in Janus, Credit Suisse was not only intimately involved in the drafting of the offering documents but the evidence adduced on the summary judgment record demonstrates that Credit Suisse had ultimate authority over the content," said the companies' lawyer, Harold Levison, Esq., at Kasowitz Benson Torres & Friedman LLP, in New York. Mr. Levison said that Credit Suisse had veto authority over the content of the documents, had the right to review and approve them before they were distributed to investors, and could insist on whatever disclosures it believed were appropriate. "The Janus Court made clear that the key to determining whether a party is liable for a misrepresentation is whether that party exercises control over its content," Mr. Levison said in the statement. "The evidence demonstrates that Credit Suisse exercised such control." The statement drew support from Pharos Capital Partners L.P. and from a group of noteholders in Arizona represented by Texas-based Gibbs & Bruns LLP. Robert Millimet, Esq., at Bickel & Brewer, in Dallas, Texas, said the decision in the Janus case is "inapposite" as to Pharos Capital because it has submitted "substantial evidence of actionable misrepresentations and omissions" that Credit Suisse made directly to Pharos Capital in addition to the offering documents. For its part, the Arizona noteholders argued that nothing in the Janus case negates their claims or strengthens Credit Suisse's defenses against them. They pointed out that the Janus case is inapplicable to their claims, which are all "state law claims." With respect to the decision in the Ashland case, the group said that Ashland's claims of fraud "were premised on reliance on merely vague statements." "The vague oral assurances on which the Ashland plaintiff claimed to have relied bear no resemblance to the chronic fraudulent statements, omissions and acts wrought upon the Arizona noteholders by Credit Suisse," said the group's lawyer, Kathy Patrick, Esq., at Gibbs & Bruns LLP, in Houston, Texas. Ms. Patrick pointed out that the Arizona noteholders' reliance is not based on "vague" statements by Credit Suisse but on systemic misstatements and fraudulent acts by Credit Suisse. She further said that the offering documents at issue were replete with misstatements and did not disclose the fraud at NCFE. About National Century Headquartered in Dublin, Ohio, National Century Financial Enterprises, Inc. -- http://www.ncfe.com/-- was the largest issuer of medical accounts receivable asset backed securities in the United States before it collapsed in bankruptcy in November 2002 amid allegations of widespread fraud and misappropriation of assets. To date, 10 senior executives of the company have been convicted or pled guilty to federal charges of conspiracy, securities fraud, wire fraud, and money laundering arising out of the NCFE securitization program. NCFE -- through the CSFB Claims Trust, the Litigation Trust, the VI/XII Collateral Trust, and the Unencumbered Assets Trust -- is in the midst of liquidating estate assets. The Company filed for Chapter 11 protection on November 18, 2002 (Bankr. S.D. Ohio Case No. 02-65235). The Court confirmed the Debtors' Fourth Amended Plan of Liquidation on April 16, 2004. Paul E. Harner, Esq., at Jones Day, represented the Debtors. Bankruptcy Creditors' Service, Inc., publishes NATIONAL CENTURY BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by National Century Financial Enterprises Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000) NATIONAL CENTURY: Firm Says Bankr. Ct. Has Authority vs. Stein -------------------------------------------------------------- The bankruptcy court overseeing the lawsuit filed by Jones Day and Matthew Kairis has the authority to adjudicate their claims against Tracy Hampton-Stein, a lawyer from the Ohio-based law firm said in court papers. Matthew Corcoran, Esq., at Jones Day, in Columbus, Ohio, said the U.S. Bankruptcy Court for the Southern District of Ohio has the authority to hear and determine the plaintiffs' claims for damages as a result of Ms. Hampton-Stein's alleged violation of the so-called "Barton doctrine." Ms. Hampton-Stein allegedly violated the U.S. Supreme Court's doctrine in the case known as Barton v. Barbour when she sued the administrator of a liquidating trust created pursuant to National Century Financial Enterprises Inc.'s confirmed Chapter 11 plan as well as his counsel, Jones Day, in Florida state courts without seeking leave. The first of the two lawsuits filed was voluntarily dismissed after it was transferred to the Ohio Bankruptcy Court. Meanwhile, Ms. Hampton-Stein was ordered in 2009 to preliminarily enjoin from prosecuting the second lawsuit. In a 20-page brief, Mr. Corcoran also said that the Supreme Court's decision in the case known as Stern v. Marshall does not apply to the hearing on the plaintiffs' claims. In the Stern case, a widow brought an adversary proceeding in her Chapter 11 case to recover for her stepson's alleged tortuous interference with her expectancy of inheritance or gift from her deceased husband. After granting certiorari, the Supreme Court held that the bankruptcy court overseeing her case lacked authority under Article III of the U.S. Constitution to enter a final judgment on the widow's counterclaim. Mr. Corcoran said the Stern case does not affect a bankruptcy court's ability to enter final judgment in Barton actions. "Stern did not address whether the bankruptcy court had subject matter jurisdiction over the counterclaim in that case," the lawyer said. "Rather, Stern addresses the bankruptcy court's authority when hearing certain state law counterclaims." Mr. Corcoran further argued that only the Ohio Bankruptcy Court has the jurisdiction to decide the plaintiffs' claims and that jurisdiction includes the power to enter final judgment. As of June 30, 2011, Jones Day and Mr. Kairis have reportedly sustained damages of at least $574,539 resulting from Ms. Hampton-Stein's alleged violations of the Barton doctrine. Meanwhile, Ms. Hampton-Stein said that the Barton doctrine was "never properly" applied and cannot be applied to restrain her from pursuing her Florida lawsuit against the defendants including Jones Day and Mr. Kairis as decreed by the U.S. Supreme Court in the Stern case. Ms. Hampton-Stein further said that even if the Stern case is inapplicable or had never been issued by the Supreme Court, the Ohio Bankruptcy Court has made it clear in its preliminary injunction that acts by rogue lawyers and other acts done without ratification of the liquidating trust or outside of the course and scope authorized by the trust are not protected by any doctrine of law, Barton or otherwise. In a related development, Jones Day disclosed the names of trial witnesses who may be called to make testimonies regarding the damages the firm incurred in connection with Ms. Hampton-Stein's lawsuits. The witnesses are Charles Oellermann and Joseph Witalec who are both lawyers at Jones Day. About National Century Headquartered in Dublin, Ohio, National Century Financial Enterprises, Inc. -- http://www.ncfe.com/-- was the largest issuer of medical accounts receivable asset backed securities in the United States before it collapsed in bankruptcy in November 2002 amid allegations of widespread fraud and misappropriation of assets. To date, 10 senior executives of the company have been convicted or pled guilty to federal charges of conspiracy, securities fraud, wire fraud, and money laundering arising out of the NCFE securitization program. NCFE -- through the CSFB Claims Trust, the Litigation Trust, the VI/XII Collateral Trust, and the Unencumbered Assets Trust -- is in the midst of liquidating estate assets. The Company filed for Chapter 11 protection on November 18, 2002 (Bankr. S.D. Ohio Case No. 02-65235). The Court confirmed the Debtors' Fourth Amended Plan of Liquidation on April 16, 2004. Paul E. Harner, Esq., at Jones Day, represented the Debtors. Bankruptcy Creditors' Service, Inc., publishes NATIONAL CENTURY BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by National Century Financial Enterprises Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000) NATIONAL CENTURY: VI/XII Trust Files Second Quarter Report ---------------------------------------------------------- Current Paid to Balance Quarter Date Due ------- ------- ------- A. FEES AND EXPENSES: 1. Trustee Compensation - - - 2. Fees for Attorney for Trustee - - - 3. Fee for Attorney for Debtor $62,648 $9,890,901 - 4. Other professionals 43,169 5,401,042 - 5. All expenses, including trustee 219,773 12,369,238 - B. DISTRIBUTIONS: 6. Secured Creditors - 494,353,519 - 7. Priority Creditors - - - 8. Unsecured Creditors - - - 9. Equity Security Holders - - - 10. Other Payments or Transfers 11,964 54,281,571 - ---------- ----------- ---------- Total Plan Payments $337,555 $576,296,272 - ========== =========== ========== About National Century Headquartered in Dublin, Ohio, National Century Financial Enterprises, Inc. -- http://www.ncfe.com/-- was the largest issuer of medical accounts receivable asset backed securities in the United States before it collapsed in bankruptcy in November 2002 amid allegations of widespread fraud and misappropriation of assets. To date, 10 senior executives of the company have been convicted or pled guilty to federal charges of conspiracy, securities fraud, wire fraud, and money laundering arising out of the NCFE securitization program. NCFE -- through the CSFB Claims Trust, the Litigation Trust, the VI/XII Collateral Trust, and the Unencumbered Assets Trust -- is in the midst of liquidating estate assets. The Company filed for Chapter 11 protection on November 18, 2002 (Bankr. S.D. Ohio Case No. 02-65235). The Court confirmed the Debtors' Fourth Amended Plan of Liquidation on April 16, 2004. Paul E. Harner, Esq., at Jones Day, represented the Debtors. Bankruptcy Creditors' Service, Inc., publishes NATIONAL CENTURY BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by National Century Financial Enterprises Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000) NATIONAL CENTURY: UAT Files Second Quarter Report ------------------------------------------------- Current Paid to Balance Quarter Date Due ------- ------- ------- A. FEES AND EXPENSES: 1. Trustee Compensation - - - 2. Fees for Attorney for Trustee - - - 3. Fee for Attorney for Debtor $88,212 16,230,422 - 4. Other professionals 59,344 11,849,962 - 5. All expenses, including trustee 226,506 23,610,948 - B. DISTRIBUTIONS: 6. Secured Creditors - - - 7. Priority Creditors - - - 8. Unsecured Creditors - $205,936,188 - 9. Equity Security Holders - - - 10. Other Payments or Transfers - - - ---------- ----------- ---------- Total Plan Payments $374,062 $257,627,521 - ========== =========== ========== About National Century Headquartered in Dublin, Ohio, National Century Financial Enterprises, Inc. -- http://www.ncfe.com/-- was the largest issuer of medical accounts receivable asset backed securities in the United States before it collapsed in bankruptcy in November 2002 amid allegations of widespread fraud and misappropriation of assets. To date, 10 senior executives of the company have been convicted or pled guilty to federal charges of conspiracy, securities fraud, wire fraud, and money laundering arising out of the NCFE securitization program. NCFE -- through the CSFB Claims Trust, the Litigation Trust, the VI/XII Collateral Trust, and the Unencumbered Assets Trust -- is in the midst of liquidating estate assets. The Company filed for Chapter 11 protection on November 18, 2002 (Bankr. S.D. Ohio Case No. 02-65235). The Court confirmed the Debtors' Fourth Amended Plan of Liquidation on April 16, 2004. Paul E. Harner, Esq., at Jones Day, represented the Debtors. Bankruptcy Creditors' Service, Inc., publishes NATIONAL CENTURY BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by National Century Financial Enterprises Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000) NET ELEMENT: Incurs $1.7 Million Second Quarter Net Loss -------------------------------------------------------- Net Element, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $1.72 million on $26,058 of net revenues for the three months ended June 30, 2011, compared with a net loss of $1.38 million on $0 of net revenues for the same period during the prior year. The Company also reported a net loss of $22.04 million on $104,204 of net revenues for the six months ended June 30, 2011, compared with a net loss of $2.41 million on $0 of net revenues for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $1.74 million in total assets, $4.33 million in total liabilities and a $2.59 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/V2hS1A About Net Element Miami, Fla.-based Net Element, Inc. (formerly TOT Energy, Inc.) currently operates several online media websites in the film, auto racing and emerging music talent markets. Daszkal Bolton LLP, in Fort Lauderdale, Fla., expressed substantial doubt about Net Element's ability to continue as a going concern. The independent auditors noted that the Company has experienced recurring losses and has an accumulated deficit and stockholders' deficiency at Dec. 31, 2010. The Company reported a net loss of $3.1 million on $242 of sales for the nine-month period ended Dec. 31, 2010. The Company had a net loss of $6.6 million on $0 revenue for the twelve months ended March 31, 2010. NORTEL NETWORKS: Judges OK Price Cut for Internet Phone Business ---------------------------------------------------------------- Michael Bathon at Bloomberg News reports that Nortel Networks Inc. won court permission to cut the price of its former Internet phone business by $25 million, almost 17 months after selling the unit to Genband Inc. At a joint hearing of courts in the U.S. and Canada, the judges overseeing Nortel's liquidation approved the reduction, which came after Genband challenged the price formula used last year when it bought the unit. Genband completed the sale in May 2010, paying $182.5 million into an escrow account, according to court records The report relates that after negotiating with Genband, Nortel's units in Canada and the U.S. agreed to a final purchase price of $157.7 million, according to court documents. "These resolutions move the matter toward the ultimate resolution of the case," U.S. Bankruptcy Judge Kevin Gross said in Wilmington, Delaware, according to the Bloomberg report. After a joint hearing with the U.S. Bankruptcy Court for the District of Delaware and the Ontario Superior Court of Justice, U.S. Bankruptcy Judge Kevin Gross and Canadian Justice Geoffrey Morawetz approved the agreement, according to Law360. 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. In August 2011, Nortel won court approval to sell its intellectual property portfolio to a group that includes Apple Inc. and Microsoft Corp. for $4.5 billion. 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. NORTHEAST THEATRE: Files for Chapter 7 Bankruptcy Protection ------------------------------------------------------------ James Haggerty at The Times-Tribune reports that Northeast Theatre dba Electric Theatre Company filed for Chapter 7 protection in U.S. Bankruptcy Court for the Middle District of Pennsylvania. According to the report, the Company identified $17,176 in assets and $80,049 in liabilities in court papers. Earlier this month, Electric Theatre Company ceased operations at the Hotel Jermyn, where it had leased space and staged performances since 2004. The report notes Starlight Musical Theatre, a 65-year-old light opera company in San Diego, filed for Chapter 11 bankruptcy organization in July. Florida Stage, a 24-year-old theater company in West Palm Beach, Fla., filed for bankruptcy liquidation in June. The report relates that decreasing donations and the stalled economy spelled doom for the local company, said David Zarko, former producing artistic director for Electric Theatre. Reduced ticket prices and budget cuts failed to help the organization turn around, he said. The report says the company lost $39,390 from July 1, 2009, until the bankruptcy filing, according to court papers. The group's primary assets include lights, controls, audience seating and power tools valued at $8,280 and tables, chairs and pianos valued at $6,280. The organization has no secured creditors but primary unsecured creditors include Mr. Zarko, who is owed $16,536, and a Citibank credit card with a balance of $13,588. Formed in 1992 as Northeast Theatre Ensemble, the Company staged new plays, dramatic readings and well-known productions at the Scranton Cultural Center and Keystone College before settling at the Hotel Jermyn. NOVEMBER 2005: Hearing on Sale Procedures Continued to Sept. 8 -------------------------------------------------------------- The Bankruptcy Court began on Aug. 11 the hearing on the request of November 2005 Land Investors, LLC, and its debtor-affiliates for approval of procedures that will govern the proposed sale of their assets. The Court will hold another hearing on Sept. 8, 2011, at 9:30 a.m. When they filed for bankruptcy, the Debtors struck a deal to sell the portion of a real property that they own, which is part of the Park Highlands real estate development, to BOH Park Highlands NV, L.P. for $15.2 million. To maximize the value of the asset, the Debtors propose to accept competing offers by Sept. 15, 2011, and hold an auction no later than Sept. 19. The Debtors want the hearing to approve a sale to the winning bidder on Sept. 23. Road to Chapter 22 November 2005 -- together with DRHI Inc. -- acquired in May 2006 roughly 2,675 gross acres (1,947 net acres) located in North Las Vegas, Nevada, which is part of the Park Highlands Project, from the United States Bureau of Land Management. At the time, November 2005's sole member was NLV Holding. NLV Holding in turn, was owned by a consortium of four homebuilders. November 2005 financed the acquisition of the Real Property with first and second lien secured debt. November 2005's debt was to be repaid over time with proceeds from land sales to the Original Owners at predetermined prices according to a predetermined take down schedule. Concurrently with the acquisition of the Real Property, DRHI and November 2005 entered into a Development Agreement with the City of North Las Vegas. To allocate certain infrastructure costs contemplated by the Development Agreement, November 2005 and DRHI also entered into an Infrastructure Funding Agreement dated March 1, 2006, as subsequently amended. DRHI would over-fund its proportionate share of costs to construct infrastructure for the Real Property, and November 2005 would be obligated to reimburse to DRHI the balance of any such over-funding. To secure the repayment of any amounts owing to DRHI for over-funding of infrastructure costs under the IFA, November 2005 and DRHI also entered into the Conditional Repayment and Funding Agreement dated May 9, 2006. Due to a variety of factors including the global economic recession that began in late 2007, depressed residential housing markets and distress in global credit markets, demand for housing in the Las Vegas market declined dramatically. The negative effects of the foregoing on the Real Property were compounded by November 2005's significant debt load. In 2008, BOH Park Highlands purchased and was assigned all of DRHI's interests in and to the Real Property, including approximately 400 acres of real property and all rights of DRHI under the Development Agreement, the IFA, the Refunding Agreement and a Letter Agreement dated May 9, 2006. Also in 2008, after securing multiple amendments, waivers, extensions and forbearance concessions from lenders, November 2005 attempted to execute an out-of-court restructuring with its first and second lien lenders. November 2005 failed to achieve unanimous consent from the lender groups with respect to the out- of-court restructuring plan. November 2005 filed for Chapter 11 bankruptcy in May 2009. As part of the 2009 Bankruptcy, November 2005 obtained confirmation of a chapter 11 Plan of Reorganization on Nov. 4, 2009. Under the 2009 Plan, $8 million in new capital (in the form of a converted debtor-in-possession loan) was contributed into November 2005, and NLV Holding became the sole member of the reorganized debtor. In addition, the first and second lien debt on the Real Property was restructured, such that the Real Property was then encumbered by (i) first lien debt of $125 million, and (ii) second lien debt of $55 million. The Debtors said the liens securing the first and second lien debt remained subject to the pre-existing encumbrance of $3.2 million owed to BOH as evidenced by the Refunding Agreement. Still laden with a significant debt load and under continued housing market stress, the reorganized November 2005 defaulted on interest payments within four months of emergence from chapter 11. The owners of November 2005 stopped funding infrastructure improvements and service obligations in 2010. As a result, for most of 2010, the Real Property sat idle with no development and no activity. In December 2010, BOPH Inc. purchased 100% of the equity in NLV Holding (for nominal consideration) with the intention of restructuring November 2005's debt facilities so that the Development Agreement could be amended to implement a new cost sharing agreement to allocate infrastructure costs among all owners within the Park Highlands Project. BOPH Inc. is an affiliate of BOH Park Highlands. During the period between the 2009 Bankruptcy and July 2011, certain parcels of the Real Property have been sold such that November 2005's current interest in the Real Property is 1,340 gross acres (approximately 1,000 net acres). Prior to the 2011 Petition Date, the Debtors and their professional advisors diligently explored various out-of-court alternatives. In March 2011, the Debtors retained Odyssey Capital Group LLC to assist with these efforts. Odyssey advised the Debtors that a restructuring (either in court or out-of-court) was not possible in light of (i) the depressed value of the Real Property (as evidenced by a recent appraisal obtained by the Debtors); (ii) the stated opposition to any restructuring by a group of lenders holding approximately 48% of the first lien debt; (iii) the stated threat of such lenders to file an involuntary Chapter 7 petition against November 2005 if an organized sales process was not promptly commenced; and (iv) the absence of any working capital available to the Debtors. The Debtors commenced Chapter 11 anew with the goal of selling substantially all of their assets. In the weeks leading up to the Chapter 11 filing, Odyssey initiated discussions with BOH Park Highlands regarding the possibility of BOH Park Highlands acting as the stalking horse bidder. The Debtors believe that a sale of the Property to the highest bidder will provide the best opportunity for maximizing value to creditors. The distribution of the sale proceeds will be distributed pursuant to a plan of liquidation. The Debtors have said they intend to file the liquidation plan prior to the hearing on the Sale Procedures Motion. No plan has been filed so far. Breakup Fee The Stalking Horse Agreement with BOH Park Highlands includes certain protections for the Purchaser. In particular, the Debtors will be required to pay to the Purchaser a $300,000 fee and reimburse the Purchaser for its reasonable, actual out-of-pocket expenses incurred up to an aggregate amount of $100,000 in the event the Debtors close a deal with another party or the deal is terminated based on the Debtors' material breach. The Purchaser has made a $1.52 million earnest money deposit. Of the amount, $1.22 million was deposited with an escrow agent and $300,000 was provided to the Debtors, which they may use to satisfy administrative expenses. Competing offers must be greater than $15.7 million, which consists of the sum of (a) $15.2 million offered under the pursuant to the Stalking Horse Agreement; (b) the Break-Up Fee ($300,000); (c) the Expense Reimbursement ($100,000); and (d) an initial bid increment ($100,000). The Stalking Horse Agreement originally obligates the Debtors to obtain the entry of a Sale Procedures Order acceptable to Purchaser by Aug. 12, 2011, and an order approving the sale acceptable to Purchaser by Sept. 30. In the event the Debtors strike a deal with another bidder, the Stalking Horse Agreement requires that deal to close by Oct. 30. First Lien Lenders Object Wilmington Trust, National Association, in its capacities as administrative agent and collateral agent to the Debtors' first lien lenders, has accused the Debtors of undertaking a unilateral path to reacquire the collateral of the First Lien Lenders at an artificially low price through an insider. Wilmington Trust said it is not necessarily opposed to a sale of the Property and in fact, may credit bid for the Property, and may even seek to challenge the insider as the stalking horse bidder and request that the Court instead approve the First Lien Agent to be the stalking horse bidder. Wilmington Trust, however, takes exception to certain provisions described in the Sale Procedures Motion which "appear to be designed solely for the benefit of the Debtors and their affiliated stalking horse bidder, rather than maximizing the value of the Property for the benefit of the creditors of the estates of the Debtors." Wilmington Trust challenges the proposal to repay a pre-existing encumbrance of $3.2 million owed to BOH Park Highlands under the Refunding Agreement from the sale proceeds prior to distribution of any proceeds to the First Lien Lenders. Wilmington Trust said the lien of the First Lien Lenders is and remains a first priority lien. Wilmington Trust also objects to the Debtors' use of the $300,000 portion of BOH Park Highland's deposit. Wilmington Trust said the deposit constitutes proceeds of the First Lien Lenders' collateral and the First Lien Lenders have not (and likely will not) consent to the depletion of their cash collateral to pay for the costs of administration in the Chapter 11 cases. Wilmington Trust also said the payment of the break-up fee and expense reimbursement is unnecessary given that the Stalking Horse Bidder is an affiliate of the Debtor, and the fact that neither the Debtors nor their financial advisors attempted to obtain any competing bidders to act as the stalking horse bidder on potentially more favorable terms. Wilmington Trust said the marketing time before the proposed auction date is insufficient for other potential bidders to get up to speed on the other agreements affecting the Property and is concerned that the Debtors' financial advisors will favor the Stalking Horse Bidder, which the financial advisors promoted, and that the financial advisors would not be motivated to work with competing bidders to understand the Property and develop competing bids. Wilmington Trust said that as of the bankruptcy filing, the Debtors owed the First Lien Lenders $123,488,120.30 pursuant to the First Lien Credit Agreement. Interest, late fees, and other charges and expenses have accrued prior to and were unpaid as of the Petition Date and will continue to accrue on and after the Petition Date in accordance with the First Lien Credit Agreement. As security for their obligations to the First Lien Lenders under the First Lien Credit Agreement, the Debtors granted a first priority security interest to the First Lien Agent in the Property for the benefit of the First Lien Lenders. As of the Petition Date, the Debtors also owed the Second Lien Lenders $55,438,520.56. Wilmington Trust also serves as Second Lien Agent, succeeding Credit Suisse AG, Cayman Islands Branch. Interest, late fees, and other charges and expenses have accrued prior to and were unpaid as of the Petition Date and will continue to accrue on and after the Petition Date in accordance with the Second Lien Credit Agreement. As security for their obligations to the Second Lien Lenders under the Second Lien Credit Agreement, the Debtors granted a second priority security interest to the Second Lien Agent in the Property for the benefit of the Second Lien Lenders. About November 2005 Land Investors November 2005 Land Investors LLC was formed on Oct. 11, 2005, for the purpose of acquiring -- together with a third party entity -- roughly 2,675 gross acres (1,947 net acres) located in North Las Vegas, Nevada, which is part of the Park Highlands Project. NLV Holding LLC is the 100% owner of November 2005. BOPH Inc. is the 100% owner of NLV Holding. November 2005 Land Investors LLC and affiliates, NLV Holding LLC and BOPH Inc. filed separate Chapter 11 petitions (Bankr. D. Nev. Case Nos. 11-20704, 11-20707 and 11-20709) on July 6, 2011, estimating $10 million to $50 million in assets and $100 million to $500 million in debts. Judge Mike K. Nakagawa presides over the 2011 cases. James D. Greene, Esq., at Greene Infuso, LLP, serves as the Debtors' bankruptcy counsel. November 2005 Land first filed for Chapter 11 protection (Bankr. D. Nev. Case No. 09-17474) on May 8, 2009. Judge Nakagawa also handled that case. Richard F. Holley, Esq., at Santoro, Driggs, Walch, Kearney, Holley & Thompson as general bankruptcy counsel. In the 2009 petition, the Debtor disclosed estimated assets and debts of $100 million to $500 million. Wilmington Trust, National Association, succeeded Credit Suisse AG, Cayman Islands Branch, as administrative agent and collateral agent to the Debtors' First Lien Lenders. Credit Suisse Securities (USA) LLC serves as syndication agent. The First Lien Agent is represented by: Raniero D'Aversa, Jr., Esq. ORRICK, HERRINGTON & SUTCLIFFE LLP 51 W. 52nd Street New York, NY 10019 Telephone: (212) 506-5000 Facsimile: (212) 506-5151 E-mail: rdaversa@orrick.com - and - Jeffery D. Hermann, Esq. ORRICK, HERRINGTON & SUTCLIFFE LLP 777 South Figueroa Street, Suite 3200 Los Angeles, CA 90017 Telephone: (213) 629-2020 Facsimile: (213) 612-2499 E-mail: jhermann@orrick.com - and - James Patrick Shea, Esq. Candace C. Carlyon, Esq. SHEA & CARLYON, LTD. 701 Bridger Avenue, Suite 850 Las Vegas, NV 89101 Telephone: (702) 471-7432 Facsimile: (702) 471-7432 E-mail: jshea@sheacarlyon.com ccarlyon@sheacarlyon.com NOVEMBER 2005: Adjusts Terms of Odyssey's Hiring Amid Objections ---------------------------------------------------------------- November 2005 Land Investors, L.L.C., NLV Holding, L.L.C. and BOPH, Inc., have withdrawn their application to employ Odyssey Capital Group, LLC, as financial advisors and to provide the Debtors a chief restructuring officer and additional personnel. Instead, the Debtors -- through a separate, yet to be filed motion -- plan to seek approval of the proposed compensation arrangement contained in the Odyssey engagement letter through the auspices of Bankruptcy Code Sec. 363(b) as a non-ordinary course of business transaction. The Debtors believe that the compensation arrangement they have negotiated with Odyssey is eminently fair and reasonable in the context of the proposed transaction. Wilmington Trust, National Association, as administrative agent and collateral agent to the First Lien Lenders, and the United States Trustee have objected to the Debtors' prior application to employ the firm. The First Lien Lenders have questioned the firm's disinterestedness. In March 2011, the Debtors hired Odyssey to assist with them in exploring out-of-court alternatives. The firm advised the Debtors that a restructuring -- either in court or out-of-court -- was not possible in light of (i) the depressed value of the Debtor's real property; (ii) the stated opposition to any restructuring by a group of lenders holding approximately 48% of the first lien debt; (iii) the stated threat of such lenders to file an involuntary Chapter 7 petition against November 2005 if an organized sales process was not promptly commenced; and (iv) the absence of any working capital available to the Debtors. The Debtors in consultation with Odyssey, determined that seeking bankruptcy protection under Chapter 11 of the Bankruptcy Code and selling substantially all of their assets pursuant to the Bankruptcy Code was in the best interests of all parties in-interest. In that regard, the Debtors retained Odyssey to act as their financial advisors to run an organized, robust sales process for their real property. Each of the Debtors has appointed one of Odyssey's principals, Grant Lyon, to their Board of Directors and elected Mr. Lyon as President and Chief Restructuring Officer. In addition, each the Debtors have elected Nathan Barber of Odyssey as Treasurer, Secretary, and Assistant Chief Restructuring Officer. Mr. Lyon and Mr. Barber would independently manage the Debtors' Chapter 11 cases and the sale process. In the weeks leading up to the Debtors' Chapter 11 filing, Odyssey initiated discussions with BOH Park Highlands NV, L.P., regarding the possibility of it acting as the stalking horse bidder for a sale of substantially all of November 2005's assets in Chapter 11 proceedings. Odyssey's Engagement Letter, among other things, proposes to pay the firm: (i) a one-time payment of $100,000 for pre-petition work, payable upon execution of the Engagement Letter; (ii) a monthly retainer of $25,000 per month, subject to Bankruptcy Court approval, commencing on the Petition Date; (iii) subject to Bankruptcy Court approval, a transaction completion fee of 125 basis points (1.25%) of the gross amount of any completed restructuring, sale, or other disposition of the Property; and (iv) reimbursement of reasonable out-of-pocket expenses. The Debtors will also provide indemnification. Mr. Lyon has attested that neither Odyssey nor any professional employee of Odyssey has any connection with or interest adverse to the Debtors, their creditors, or any other party in interest, or their attorneys and accountants. Wilmington Trust said its objections arise as a result of serious concerns relating to Odyssey's impartiality, disinterestedness, and its ability to fairly market the Property to competing bidders given the circumstances of its retention and its efforts, which apparently have been devoted exclusively to proposing an insider stalking horse bid for the Property. Wilmington Trust pointed out that Mr. Lyon, Odyssey's President, was appointed pre-petition as the sole member of the Board of Directors for each of the Debtors. In addition, the Debtors "elected Mr. Lyon as President and Chief Restructuring Officer" and elected "Mr. Nathan Barber of Odyssey as Treasurer, Secretary, and Assistant Chief Financial Officer." These appointments as a director and officer of the Debtors make Odyssey an insider of the Debtors and, as such, Odyssey cannot satisfy the "disinterested persons" requirement of 11 U.S.C. Section 327(a). The First Lien Agent also pointed out that Odyssey is being retained by officers of Hillwood Development Company, LLC, a Perot company based in Dallas, Texas, and the principal equity sponsor of stalking horse bidder BOH and debtor BOPH Inc. The First Lien Agent noted that Fred Balda, the President of Hillwood Communities, a division of Hillwood, signed Odyssey's Engagement Letter on behalf of November 2005. The creditors are entitled to have a fair and impartial process for the sale of the Property, the First Lien Agent contends. August B. Landis, Acting United States Trustee for the District of Nevada, said Odyssey's retention is limited to that of an "independent contractor with no fiduciary or agency relationship to the Company or to any other party." The Engagement Letter seeks to divest the Bankruptcy Court of jurisdiction over disputes relating to Odyssey's retention in contravention of 28 U.S.C. Sections 157(a) and 1334(e)(2). The Acting U.S. Trustee also noted that the Debtors' Application is predicated upon 11 U.S.C. Sections 105, 328 and 363(b), not on Section 327, and Odyssey does not qualify as a disinterested person within the meaning of 11 U.S.C. Sections 101(14) and 327. In addition, section 328 is not an independent grant of authority for retaining and employing professionals; rather, that provision speaks to the terms and conditions of a retention and employment engagement approved under 11 U.S.C. Sec. 327. The Acting U.S. Trustee said the Application is trying to shield Odyssey's fees from review under 11 U.S.C. Sec. 330. The Debtors' argument, however, is flawed. About November 2005 Land Investors November 2005 Land Investors LLC was formed on Oct. 11, 2005, for the purpose of acquiring -- together with a third party entity -- roughly 2,675 gross acres (1,947 net acres) located in North Las Vegas, Nevada, which is part of the Park Highlands Project. NLV Holding LLC is the 100% owner of November 2005. BOPH Inc. is the 100% owner of NLV Holding. November 2005 Land Investors LLC and affiliates, NLV Holding LLC and BOPH Inc. filed separate Chapter 11 petitions (Bankr. D. Nev. Case Nos. 11-20704, 11-20707 and 11-20709) on July 6, 2011, estimating $10 million to $50 million in assets and $100 million to $500 million in debts. Judge Mike K. Nakagawa presides over the 2011 cases. James D. Greene, Esq., at Greene Infuso, LLP, serves as the Debtors' bankruptcy counsel. November 2005 Land first filed for Chapter 11 protection (Bankr. D. Nev. Case No. 09-17474) on May 8, 2009. Judge Nakagawa also handled that case. Richard F. Holley, Esq., at Santoro, Driggs, Walch, Kearney, Holley & Thompson as general bankruptcy counsel. In the 2009 petition, the Debtor disclosed estimated assets and debts of $100 million to $500 million. Still laden with a significant debt load and under continued housing market stress, the reorganized November 2005 defaulted on interest payments within four months of emergence from chapter 11. The owners of November 2005 stopped funding infrastructure improvements and service obligations in 2010. Wilmington Trust, National Association, succeeded Credit Suisse AG, Cayman Islands Branch, as administrative agent and collateral agent to the Debtors' First Lien Lenders. Credit Suisse Securities (USA) LLC serves as syndication agent. The First Lien Agent is represented by lawyers at Orrick, Herrington & Sutcliffe LLP and Shea & Carlyon, Ltd. NOVEMBER 2005: Lenders Dispute Use of Collateral to Pay Lawyers --------------------------------------------------------------- Wilmington Trust, National Association, as agent to the first lien lenders, objects to payments proposed in the request of November 2005 Land Investors LLC and its affiliates to employ Greene Infuso, LLP, as counsel. The First Lien Agent said it recognizes that the Debtors require the assistance of counsel and is not necessarily opposed to Greene Infuso's employment. However, the First Lien Agent has not -- and likely will not -- consent to the payment of any fees and costs incurred by Greene Infuso out of the collateral of the First Lien Lender. Accordingly, to the extent the Court enters an order approving the Application, the First Lien Agent wants any order to provide that all fees and expenses incurred by Greene Infuso will not be surcharged to, or paid out of the collateral of the First Lien Lenders. Wilmington Trust said that as of the bankruptcy filing, the Debtors owed the First Lien Lenders $123,488,120.30 pursuant to the First Lien Credit Agreement. Interest, late fees, and other charges and expenses have accrued prior to and were unpaid as of the Petition Date and will continue to accrue on and after the Petition Date in accordance with the First Lien Credit Agreement. As security for their obligations to the First Lien Lenders under the First Lien Credit Agreement, the Debtors granted a first priority security interest to the First Lien Agent in the Property for the benefit of the First Lien Lenders. As of the Petition Date, the Debtors also owed the Second Lien Lenders $55,438,520.56. Wilmington Trust also serves as Second Lien Agent, succeeding Credit Suisse AG, Cayman Islands Branch. Interest, late fees, and other charges and expenses have accrued prior to and were unpaid as of the Petition Date and will continue to accrue on and after the Petition Date in accordance with the Second Lien Credit Agreement. As security for their obligations to the Second Lien Lenders under the Second Lien Credit Agreement, the Debtors granted a second priority security interest to the Second Lien Agent in the Property for the benefit of the Second Lien Lenders. About November 2005 Land Investors November 2005 Land Investors LLC was formed on Oct. 11, 2005, for the purpose of acquiring -- together with a third party entity -- roughly 2,675 gross acres (1,947 net acres) located in North Las Vegas, Nevada, which is part of the Park Highlands Project. NLV Holding LLC is the 100% owner of November 2005. BOPH Inc. is the 100% owner of NLV Holding. November 2005 Land Investors LLC and affiliates, NLV Holding LLC and BOPH Inc. filed separate Chapter 11 petitions (Bankr. D. Nev. Case Nos. 11-20704, 11-20707 and 11-20709) on July 6, 2011, estimating $10 million to $50 million in assets and $100 million to $500 million in debts. Judge Mike K. Nakagawa presides over the 2011 cases. James D. Greene, Esq., at Greene Infuso, LLP, serves as the Debtors' bankruptcy counsel. November 2005 Land first filed for Chapter 11 protection (Bankr. D. Nev. Case No. 09-17474) on May 8, 2009. Judge Nakagawa also handled that case. Richard F. Holley, Esq., at Santoro, Driggs, Walch, Kearney, Holley & Thompson as general bankruptcy counsel. In the 2009 petition, the Debtor disclosed estimated assets and debts of $100 million to $500 million. Still laden with a significant debt load and under continued housing market stress, the reorganized November 2005 defaulted on interest payments within four months of emergence from chapter 11. The owners of November 2005 stopped funding infrastructure improvements and service obligations in 2010. Wilmington Trust, National Association, succeeded Credit Suisse AG, Cayman Islands Branch, as administrative agent and collateral agent to the Debtors' First Lien Lenders. Credit Suisse Securities (USA) LLC serves as syndication agent. The First Lien Agent is represented by lawyers at Orrick, Herrington & Sutcliffe LLP and Shea & Carlyon, Ltd. OLD COLONY: Plan Outline Hearing Scheduled for Sept. 1 ------------------------------------------------------ The U.S. Bankruptcy Court for the District of Massachusetts will convene a hearing on Sept. 1, 2011, at 2:00 p.m., to consider adequacy of the Disclosure Statement explaining Old Colony, LLC and and Molokai Partners, LLC's proposed Plan of Reorganization. Wells Fargo Bank, N.A., successor in interest to The Jackson State Bank & Trust, tells the Court that the Disclosure Statement hearing must be scheduled after the Court has had an opportunity to resolve the dispute over the value of the real estate. Wells Fargo notes that based on the information contained in the Disclosure Statement, Wells Fargo and the Debtor have different beliefs concerning the value of the Debtor's real property. The Debtor believe that the real property has a value of $9,000,000 and Wells Fargo believes the actual value exceeds that figure by at least 50%. The valuation of that property will have a significant impact on the Debtor's proposed plan, the amount of Wells Fargo's allowed secured claim, whether Wells Fargo makes the election available to it under section 1111(b) of the Bankruptcy Code and, ultimately, the feasibility of the proposed plan. As reported in the Troubled Company Reporter on July 28, 2011, the Plan designates four classes of claims and interests against the Debtor and provides for the treatment of those claims and interests: * Class 1 Wells Fargo's Secured Claim. Holder of such claim will receive a Wells Fargo Reorganization Note, which is a full recourse secured term promissory note in the amount of $9,000,000. It will have a seven year term with payments of interest only for the first two years. * Class 2 Wells Fargo's Unsecured Claim. Holder of such claim will receive a pro rata share of the Unsecured Claim Distribution Fund. Class 2 Claim total approximately $8,750,000. * Class 3 Unsecured Claims. Holder of those claims will receive a pro rata share of the Unsecured Claim Distribution Fund. Class 3 Claims total approximately $3,718,000. * Class 4 Interests in the Debtor. All Class 4 Interests will be deemed cancelled on the Plan Effective Date. The Unsecured Claim Distribution Fund is in the amount of $623,000. Under the Plan, Molokai or its nominee will make available to fund payments under the Plan or/and as working capital the sum of $1,000,000, of which: -- $623,000 will be used to fund the Unsecured Claim Distribution Fund; -- $150,000 will be used to fund a separate reserve fund to be used to pay Allowed Administrative Claims; -- $227,000 will be made available to the New Managing Member for working capital needs of the Reorganized Debtor including to pay Priority Tax Claims, day to day operating expenses and capital improvements to the Inn. Pursuant to the Plan, the Reorganized Debtor will amend and restate its current Amended and Restated Operating Agreement dated June 2008 as required by Molokai or its nominee in its sole discretion. From and after the Effective Date of the Plan, Molokai or its nominee will be issued and will hold all of the Membership Interests in the Reorganized Debtor. A full-text copy of the Disclosure Statement dated July 1, 2011, is available for free at: http://bankrupt.com/misc/OLDCOLONY_DSJul1.PDF Wells Fargo is represented by: RIEMER & BRAUNSTETN, LLP Jeffrey D. Ganz, Esq. 3 Center Plaza Boston, MA 02108 Tel: (617) 880-3568 E-mail: jganz@riemerlaw.com About Old Colony, LLC Saugus, Massachusetts-based Old Colony, LLC, dba The Inn At Jackson Hole, filed for Chapter 11 bankruptcy protection (Bankr. D. Mass. Case No. 10-21100) on Oct. 11, 2010. Donald F. Farrell, Jr., Esq., at Anderson Aquino LLP, assists the Debtor in its restructuring effort. The Debtor estimated its assets and debts at $10 million to $50 million as of the Petition Date. OLD CORKSCREW: Can Access BMO Harris Cash Collateral Until Sept. 1 ------------------------------------------------------------------ On Aug. 10, 2011, the U.S. Bankruptcy Court entered an agreed interim order granting Old Corkscrew Plantation, LLC, et al., authorization to use cash collateral of BMO Harris Bank, N.A., successor by merger to M&I Marshall & Ilsley Bank (the "Bank"), in accordance with a 4 week budget. The use of cash collateral may vary from the amounts identified in the Budget by not more than 10% for each line item and also on an aggregate basis. As of the Petition Date, the Bank asserts that the Debtors were indebted to the Lender in the principal amount of approximately $54,434,354.05, plus accrued and accruing interest, costs, and attorneys' fees. The authority to use cash collateral will terminate on the earlier of (a) entry of an order terminating the Debtors' use of cash collateral, or (b) Sept. 1, 2011, unless otherwise extended by order of the Court or in writing by the Bank. Adequate protection will be in the form of (i) a post-petition replacement lien on all property that is of the same nature and type as the Bank Pre-Petition Collateral; provided, however, the Replacement Collateral will not include causes of action (or proceeds thereof) held by the Debtors or their bankruptcy estates arising under Chapter 5 of the Bankruptcy Code and/or analogous nonbankruptcy law ("Avoidance Actions"), or the proceeds thereof ("Avoidance Action Proceeds"), and (ii) monthly adequate protection payments to the Lender during the interim period in the amount of $222,000. The final hearing on the motion will be be conducted on Sept. 1, 2011, at 10:30 a.m. Parties objecting or responding to the permanent relief requested in the motion will file a written objection or response no later than 5 calendar days before the Final Hearing. About Old Corkscrew Plantation LLC Fort Myers, Florida-based Old Corkscrew Plantation LLC, whose oranges are made into Minute Maid and Tropicana juice, filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 11-14559) on July 29, 2011, disclosing $25,264,047 in assets and $60,751,633 in debts. Old Corkscrew sought Chapter 11 protection along with its affiliates. The Debtors' orange groves are valued at $24 million. Peter Steven Singerman, Esq. -- singerman@bergersingerman.com -- at Berger Singerman P.A., serves as the Debtors' bankruptcy counsel. Scott Westlake, the Debtors' managing member, signed the petition. Mr. Westlake is also listed as the Debtors' largest unsecured creditor, with $4,827,906 owed. Another $338,511 debt is owed to Scott and Vicki Westlake. OLSEN AGRICULTURAL: Court OKs Clyde Hamstreet as Consultant ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of Oregon has approved Olsen Agricultural Enterprises LLC's application to employ Clyde A. Hamstreet & Associates, LLC as restructuring consultant and financial advisor. Upon retention, the firm, will among other things: a) define the business operations, the intercompany connections, ownerships and governance process, b) identify noncore assets and estimated market value, potential purchasers and liquidation strategy for building war chest, c) map, flag, and index the various farm plots, with one color for owned and another for leased land. Provide detailed descriptions of the plot and an information packet for each The firm's rate are: Personnel Rates --------- ----- Clyde Hamstreet $500/hour Shirley Dunn $360/hour Gary Lawrence $310/hour Hannah Schmidt $230/hour Kathy Million $100/hour About Olsen Agricultural Enterprises Based in Monmouth, Oregon, Olsen Agricultural Enterprises LLC is the surviving entity of a merger transaction that was consummated on June 1, 2011. In the merger transaction, Olsen Agricultural Company, Inc., an Oregon corporation, Jenks-Olsen Land Co., an Oregon general partnership, Olsen Vineyard Company, LLC, an Oregon limited liability company and The Olsen Farms Family Limited Partnership were merged with and into Olsen Agricultural Enterprises. Olsen Agricultural Enterprises filed for Chapter 11 bankrutpcy (Bankr. D. Ore. Case No. 11-62723) on June 1, 2011. Judge Frank R. Alley III presides over the case. Clyde A. Hamstreet & Associates, LLC, serves as the Debtor's restructuring consultant and financial advisor. An official committee of unsecured creditors has been appointed in the case. In its petition, the Debtor listed $10 million to $50 million in assets and debts. The petition was signed by Robin G. Olsen, operations director. PEARLAND SUNRISE: Hearing on Case Dismissal Plea Set for Sept. 19 ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Texas will convene a hearing on Sept. 19, 2011, at 9:30 a.m., to consider the motion to dismiss, or in the alternative convert the Chapter 11 case of Pearland Sunrise Lake Village I, LP to one under Chapter 7 of the Bankruptcy Code. As reported in the Troubled Company Reporter on July 26, 2011, Judy A. Robbins, the U.S. Trustee for Region 7, explained that the Debtor has not filed complete and accurate monthly operating reports on a regular basis. Without operating reports, the Court, the U.S. Trustee, and the creditors are unable to determine if the Debtor has a reasonable likelihood of rehabilitation or if there has been a continuing loss to or diminution of the estate. The Court, the U.S. Trustee, and the creditor do not know whether Debtor is paying its postpetition obligations as they come due or whether Debtor is accruing administrative expenses. Marble Falls, Texas-based Pearland Sunrise Lake Village I, LP, dba SRLVI, was chartered in June 2005 for the purpose of acquiring and developing an approximately 5.8 acres of land at 9415 Broadland, Texas. Office space of 36,008 square feet of retail space and 42,973 square feet of office space was built on the property. The Company filed for Chapter 11 bankruptcy protection (Bankr. W.D. Tex. Case No. 10-11926) on July 9, 2010. Frank B. Lyon, Esq., at the Law Offices of Frank B. Lyon, in Austin, Texas, represents the Debtor. In its schedules, the Debtor disclosed $10,253,717 in assets and $16,222,127 in liabilities. PJ FINANCE: Court OKs CBRE Capital as Financial Advisor ------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware has approved PJ Finance Company LLC's application to employ CBRE Capital Advisors Inc. as their financial advisor and investment banker. As financial advisor and investment banker, CBRE Capital will review the Debtors' business operations, financial projections and potential debt capacity. The firm will also be tasked to assist the Debtors in determining an alternative capital structure and long-term business plan; give advice concerning any restructuring or recapitalization of the Debtors' outstanding debt as well as in evaluating potential debt financing or new equity; attend board and committee meetings; provide testimony, among other things. In return for its services, CBRE Capital will receive a monthly advisory fee in the sum of $125,000 and will be reimbursed for its expenses. The Debtors also agreed to indemnify the firm. CBRE Capital will also receive, among other things, a sale transaction fee equal to 1% of the aggregate consideration received from any sale transaction by the Debtors; and a restructuring fee equal to 0.625% of the aggregate amount of debt forgiven or re-tranched up to $50 million, and 0.875% of the aggregate amount of debt forgiven or re-tranched in excess of $50 million. CBRE Capital disclosed in a declaration that it does not represent any party with interest materially adverse to the Debtors and their estates. About PJ Finance Chicago, Illinois-based PJ Finance Company, LLC, owns apartment communities in the states of Arizona, Florida, Georgia, Tennessee and Texas. PJ Finance owns or holds ownership interests in 32 apartment communities that collectively have more than 9,500 rentable units. It has 20 apartment locations in Texas, and the remaining 12 in Arizona, Florida, Georgia and Tennessee. The day- to-day operations of the portfolio are managed by a third party, WestCorp Management Group One, Inc. PJ Finance and various affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-10688). Michelle E. Marino, Esq., and Stuart M. Brown, Esq., at DLA Piper LLP (US), in Wilmington, Delaware, serve as bankruptcy counsel. Kurtzman Carson Consultants, LLC, is the Debtors' claims and notice agent. An official committee of unsecured creditors has been named in the case. Christopher A. Jarvinen, Esq., and Mark T. Power, Esq., at Hahn & Hessen LLP, represent the committee as lead counsel. Richard Scott Cobb, Esq., and William E. Chipman, Jr., Esq., at Landis Rath & Cobb, in Wilmington, Del., serve as the committee's local counsel. The Debtors estimated total assets of at least $275 million (estimated value of portfolio securing loan to Bank of America) and total debts of at least $479 million ($475 million owed to BofA, $4.4 million trade debt). PJ Finance said it has a commitment for Gaia Real Estate Investments LLC to invest $42 million and serve as the foundation for a reorganization plan. PMI MORTGAGE: S&P Revises Counterparty Credit Rating From 'CCC-' ---------------------------------------------------------------- Standard & Poor's Ratings Services revised the counterparty credit and financial strength ratings on PMI Mortgage Insurance Co. (PMI) to 'R' from ' CCC-'. At the same time, Standard & Poor's placed its 'CC' counterparty credit and issue-level ratings on PMI's holding company, The PMI Group Inc. (TPG), on CreditWatch with negative implications. PMI released a statement on Aug. 19, 2011, indicating that it had been placed under supervision by the Arizona Department of Insurance. PMI and its subsidiary PMAC are no longer able to write new business and PMI can no longer make interest payments on the outstanding $285 million of surplus notes issued to its holding company. PMI is also prohibited from a variety of actions without the approval of the director of the department or its supervisor. Further, if PMI does not provide a satisfactory plan to cure its financial deficiencies within 60 days, the department may commence conservatorship proceedings or take other appropriate action. "We placed our ratings on PMI's holding company, the PMI Group Inc., on CreditWatch with negative implications because the occurrence of a court-appointed receivership could at the bondholder's option result in approximately $735 million of the outstanding indebtedness becoming due or payable," said Standard & Poor's credit analyst Miles Kaschalk. The holding company would not have sufficient resources to meet its obligations in that event. PTM TECHNOLOGIES: Barred From Filing Claim in Parent's Case ----------------------------------------------------------- Bankruptcy Judge William L. Stocks denied the request of PTM Technologies, Inc., to file a claim in parent Renegade Holdings, Inc.'s bankruptcy case after the expiration of the May 25, 2009 deadline for filing claims. Judge Stocks said PTM made a conscious and deliberate decision not to timely file a claim. The decision was a "calculated and strategic" decision, and does not constitute excusable neglect under F.R.B.P. Rule 9006. ABI leased certain equipment from PTM for use in manufacturing tobacco products. ABI owed PTM $3,069,809 and RHI owed PTM $1,774,056.45 for "Insider loan/Svc. Rendered". Although PTM had actual knowledge of these cases and the deadline for filing proofs of claim, no proof of claim was filed by PTM prior to the expiration of the deadline. PTM's Motion reflects that not filing a proof of claim was the result of a conscious and deliberate decision on the part of PTM. As to the reason for not filing a claim, the Motion states that since "all Plans contemplated a 100% payment to creditors no action to pursue the same was being contemplated. . . ." However, no proposed plans of reorganization had been filed in the cases or in the PTM case when the claims deadline expired on May 25, 2009. Nonetheless, PTM" elected" not to file a proof of claim. The 100% dividend "contemplated" by PTM has not materialized. Although a joint plan of reorganization providing for a 100% dividend subsequently was confirmed in these cases in April 2010, the confirmation of that plan has been vacated and the dividend that creditors ultimately will receive in these cases and in the PTM case is uncertain. PTM argues that relief should be granted under Rule 9006 as a result of this change in circumstances. A copy of Judge Stocks' Aug. 19, 2011 Memorandum Opinion is available at http://is.gd/msixTjfrom Leagle.com. About foldings Renegade Holdings and two subsidiaries -- Alternative Brands, Inc. and Renegade Tobacco Company -- filed for Chapter 11 protection (Bankr. M.D.N.C. Lead Case No. 09-50140) on Jan. 28, 2009, and exited bankruptcy on June 1, 2010. They were put back into bankruptcy July 19, 2010, when Judge William L. Stocks vacated the reorganization plan, in part because of a criminal investigation of owner Calvin Phelps and the companies regarding what authorities called "unlawful trafficking of cigarettes." Alternative Brands is a federally licensed manufacturer of tobacco products consisting primarily of cigarettes and cigars. Renegade Tobacco distributes the tobacco products produced by ABI through wholesalers and retailers in 19 states and for export. ABI also is a contract fabricator for private label brands of cigarettes and cigars which are produced for other licensed tobacco manufacturers. The stock of RHI is owned indirectly by Calvin A. Phelps through his ownership of the stock of Compliant Tobacco, LLC which, in turn, owns all of the stock of RHI which in turn owns all of the stock of RTC and ABI. Mr. Phelps was the chief executive officer of all three companies. All three of the Debtors' have their offices and production facilities in Mocksville, North Carolina. In August 2010, the Bankruptcy Court approved the appointment of Peter Tourtellot, managing director of turnaround-management company Anderson Bauman Tourtellot Vos & Co., as Chapter 11 trustee. Gene Tarr also has been appointed as bankruptcy examiner. About PTM Technologies PTM Technologies Inc. is a wholly owned subsidiary of Renegade Holdings, and an affiliate of Alternative Brands, Inc. and Renegade Tobacco Company, which also are wholly owned subsidiaries of Renegade Holdings. The Mocksville, North Carolina-based company filed for bankruptcy (Bankr. M.D.N.C. Case No. 10-50980) on May 26, 2010. Judge William L. Stocks presides over the case. Charles M. Ivey III, Esq. -- jlh@imgt-law.com -- at Ivey, McClellan, Gatton, & Talcott, LLP, serves as bankruptcy counsel. According to its schedules, the Company has $3,953,216 in assets and $7,199,424 in debts. PURADYN FILTER: Incurs $451,500 Second Quarter Net Loss ------------------------------------------------------- Puradyn Filter Technologies Incorporated filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $451,529 on $499,423 of net sales for the three months ended June 30, 2011, compared with a net loss of $436,223 on $761,341 of net sales for the same period during the prior year. The Company also reported a net loss of $777,966 on $1.38 million of net sales for the six months ended June 30, 2011, compared with a net loss of $705,289 on $1.43 million of net sales for the same period during the prior year. Puradyn Filter reported a net loss of $1.57 million on $3.10 million of net sales for the year ended Dec. 31, 2010, compared with a net loss of $2.07 million on $1.91 million of net sales during the prior year. The Company's balance sheet at June 30, 2011, showed $1.31 million in total assets, $8.48 million in total liabilities and a $7.17 million total stockholders' deficit. As reported in the TCR on April 13, 2011, Webb and Company, P.A., in Boynton Beach, Fla., expressed substantial doubt about PuraDdn Filter Technologies' ability to continue as a going concern, following the Company's 2010 financial results. The independent auditors noted that the Company has suffered recurring losses from operations, its total liabilities exceed its total assets, and it has relied on cash inflows from an institutional investor and current stockholder. A full-text copy of the Form 10-Q is available for free at: http://is.gd/MYyA4s About Puradyn Filter Boynton Beach, Fla.-based Puradyn Filter Technologies Incorporated (OTC BB: PFTI) -- http://www.puradyn.com/-- designs, manufactures and markets the puraDYN(R) Oil Filtration System. QIS KNOXVILLE: Case Summary & 8 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: QIS Knoxville LLC 321 N. Cedar Bluff Road Knoxville, TN 37923 Bankruptcy Case No.: 11-33859 Chapter 11 Petition Date: August 18, 2011 Court: United States Bankruptcy Court Eastern District of Tennessee (Knoxville) Judge: Richard Stair Jr. Debtor's Counsel: Thomas Lynn Tarpy, Esq. HAGOOD, TARPY & COX PLLC Suite 2100, Riverview Tower 900 South Gay Street Knoxville, TN 37902-1537 Tel: (865) 525-7313 E-mail: ltarpy@htandc.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's eight largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/tneb11-33859.pdf The petition was signed by Jayesh Patel, president and CEO. RAY ANTHONY: Motion to Prohibit Cash Collateral Use Withdrawn ------------------------------------------------------------- The Hon. Thomas P. Agresti of the U.S. Bankruptcy Court for the Western District of Pennsylvania ruled that SG Equipment Finance USA Corp.'s motion to prohibit Ray Anthony International, LLC's use of cash collateral is withdrawn. On Oct. 15, 2010, SGEF, filed a motion to (i) prohibit use of cash collateral; or (ii) condition use of cash collateral unless adequate protection is paid; or in the alternative, (iii) relief from the automatic stay, and (iv) direct the Debtor to return collateral equipment to the Continental United States. SGEF's Motion dealt with four pieces of equipment in which it has a purchase money security interest. SGEF related that the pending sales have since been consummated and SGEF wished that its motion be withdrawn. As reported in the Troubled Company Reporter on July 15, 2011, the Court confirmed the sale of the property of the Debtor to Red White & Blue Crane LLC for $9,666,500 under a certain asset purchase agreement. Judge Agresti said the purchase price was a full and a fair price for the property in question. He noted that closing will occur within 30 days of the order. SGEF is represented by: BERSTEIN LAW FIRM, P.C. Jodi L. Hause, Esq. 707 Grant Street, Suite 2200 Gulf Tower Pittsburgh, PA 15219 Tel: (412) 456-8102 Fax: (412) 456-88266 E-mail: jhause@bernsteinlaw.com About Ray Anthony International West Mifflin, Pennsylvania-based Ray Anthony International, Inc., filed for Chapter 11 bankruptcy protection (Bankr. W.D. Pa. Case No. 10-26576) on Sept. 15, 2010. The Debtor estimated assets and debts at $50 million to $100 million as of the Chapter 11 filing. Affiliate Ray G. Anthony filed a separate Chapter 11 petition (Bankr. W.D. Pa. Case No. 10-26552) on Sept. 14, 2010 RED DOOR: Voluntary Chapter 11 Case Summary ------------------------------------------- Debtor: Red Door Lounge, Inc. dba Crown Lounge P.O. Box 7366 Great Falls, MT 59403 Tel: (406) 788-2450 Bankruptcy Case No.: 11-61605 Chapter 11 Petition Date: August 18, 2011 Court: United States Bankruptcy Court District of Montana (Butte) Judge: Ralph B. Kirscher Debtor's Counsel: Steven M. Johnson, Esq. CHURCH HARRIS JOHNSON & WILLIAMS PC P.O. Box 1645 Great Falls, MT 59403 Tel: (406) 761-3000 E-mail: sjohnson@chjw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by John Foster, owner. RENEGADE HOLDINGS: PTM's Claim Strategy Backfires ------------------------------------------------- Bankruptcy Judge William L. Stocks denied the request of PTM Technologies, Inc., to file a claim in parent Renegade Holdings, Inc.'s bankruptcy case after the expiration of the May 25, 2009 deadline for filing claims. Judge Stocks said PTM made a conscious and deliberate decision not to timely file a claim. The decision was a "calculated and strategic" decision, and does not constitute excusable neglect under F.R.B.P. Rule 9006. ABI leased certain equipment from PTM for use in manufacturing tobacco products. ABI owed PTM $3,069,809 and RHI owed PTM $1,774,056.45 for "Insider loan/Svc. Rendered". Although PTM had actual knowledge of these cases and the deadline for filing proofs of claim, no proof of claim was filed by PTM prior to the expiration of the deadline. PTM's Motion reflects that not filing a proof of claim was the result of a conscious and deliberate decision on the part of PTM. As to the reason for not filing a claim, the Motion states that since "all Plans contemplated a 100% payment to creditors no action to pursue the same was being contemplated. . . ." However, no proposed plans of reorganization had been filed in the cases or in the PTM case when the claims deadline expired on May 25, 2009. Nonetheless, PTM" elected" not to file a proof of claim. The 100% dividend "contemplated" by PTM has not materialized. Although a joint plan of reorganization providing for a 100% dividend subsequently was confirmed in these cases in April 2010, the confirmation of that plan has been vacated and the dividend that creditors ultimately will receive in these cases and in the PTM case is uncertain. PTM argues that relief should be granted under Rule 9006 as a result of this change in circumstances. A copy of Judge Stocks' Aug. 19, 2011 Memorandum Opinion is available at http://is.gd/msixTjfrom Leagle.com. About Renegade Holdings Renegade Holdings and two subsidiaries -- Alternative Brands, Inc. and Renegade Tobacco Company -- filed for Chapter 11 protection (Bankr. M.D.N.C. Lead Case No. 09-50140) on Jan. 28, 2009, and exited bankruptcy on June 1, 2010. They were put back into bankruptcy July 19, 2010, when Judge William L. Stocks vacated the reorganization plan, in part because of a criminal investigation of owner Calvin Phelps and the companies regarding what authorities called "unlawful trafficking of cigarettes." Alternative Brands is a federally licensed manufacturer of tobacco products consisting primarily of cigarettes and cigars. Renegade Tobacco distributes the tobacco products produced by ABI through wholesalers and retailers in 19 states and for export. ABI also is a contract fabricator for private label brands of cigarettes and cigars which are produced for other licensed tobacco manufacturers. The stock of RHI is owned indirectly by Calvin A. Phelps through his ownership of the stock of Compliant Tobacco, LLC which, in turn, owns all of the stock of RHI which in turn owns all of the stock of RTC and ABI. Mr. Phelps was the chief executive officer of all three companies. All three of the Debtors' have their offices and production facilities in Mocksville, North Carolina. In August 2010, the Bankruptcy Court approved the appointment of Peter Tourtellot, managing director of turnaround-management company Anderson Bauman Tourtellot Vos & Co., as Chapter 11 trustee. Gene Tarr also has been appointed as bankruptcy examiner. About PTM Technologies PTM Technologies Inc. is a wholly owned subsidiary of Renegade Holdings, and an affiliate of Alternative Brands, Inc. and Renegade Tobacco Company, which also are wholly owned subsidiaries of Renegade Holdings. The Mocksville, North Carolina-based company filed for bankruptcy (Bankr. M.D.N.C. Case No. 10-50980) on May 26, 2010. Judge William L. Stocks presides over the case. Charles M. Ivey III, Esq. -- jlh@imgt-law.com -- at Ivey, McClellan, Gatton, & Talcott, LLP, serves as bankruptcy counsel. According to its schedules, the Company has $3,953,216 in assets and $7,199,424 in debts. RIVER ROCK: Moody's Lowers CFR to Caa2; Further Downgrade Likely ---------------------------------------------------------------- Moody's Investors Service downgraded River Rock Entertainment Authority's Corporate Family Rating (CFR) and Probability of Default Rating (PDR) to Caa2 from Caa1, and the rating on the $200 million senior notes due 2011 to Caa2 from Caa1. All ratings remain under review for further possible downgrade. Ratings lowered and kept on review for further possible downgrade: Corporate Family Rating -- to Caa2 from Caa1 Probability of Default Rating -- to Caa2 from Caa1 $200 million senior notes due November 2011 -- to Caa2 (LGD 4, 50%) from Caa1(LGD 4, 50%) RATINGS RATIONALE The downgrade of CFR to Caa2 reflects continued delays in completing the refinancing of RREA's $200 million senior notes due November 1, 2011, which has heighted the risk of a near-term payment default. Despite recent resolution on some critical issues that had in part caused delays in the refinancing process and the Authority's relatively stable operating performance, progress has been much slower than anticipated. At this juncture, Moody's believes the probability of further delays in refinancing beyond the debt maturity date has increased, considering the political elements that are part of the tribe's decision making process combined with other unresolved complicating factors including the refinancing of material amount of indebtedness issued by the Tribe, the owners of the River Rock casino. The review for possible downgrade suggests that the rating could be lowered further if the Authority is not able to refinance the notes on a timely basis. There is no upward rating pressure on the rating given the review. River Rock is an unincorporated governmental instrumentality of the Dry Creek Rancheria Band of Pomo Indians, a federally recognized Indian tribe with 947 enrolled members and an approximately 75-acre reservation in Sonoma County, California. River Rock was formed in 2003 to own and operate the River Rock Casino, which reported approximately $122 million in net revenues for the last twelve-month period ended June 30, 2011. The principal methodology used in rating River Rock Entertainment Authority was the Global Gaming Industry Methodology published in December 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009 (and/or) the Government-Related Issuers methodology published in July 2010. ROUND TABLE: Court OKs Boylan Brown as ESOP's Co-Counsel -------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of California has approved the application of First Bankers Trust Services, Inc., as Trustee for the Round Table Pizza, Inc., Employee Stock Option Plan (ESOP), to employ as co-counsel: Robert F. Schatz, Esq. Devin Lawton Palmer, Esq. BOYLAN, BROWN, CODE, VIGDOR & WILSON, LLP 2400 Chase Square Rochester, New York 14604 Phone: (585) 232-5300 Fax: (585) 238-9012 E-mail: dpalmer@boylanbrown.com First Bankers has selected Boylan Brown because of its expertise in matters of ESOP and bankruptcy issues and proceedings, and believes that Boylan Brown is well qualified to represent them in this case. Those services requested of Boylan Brown include: (a) advise First Bankers concerning their rights and responsibilities under the Bankruptcy Code and as ESOP Trustee; (b) provide First Bankers with continued representation in all negotiations and proceedings involving creditors, the creditors committee, secured creditors, the department of labor and other parties; (c) advice First Bankers on all matters relating to this bankruptcy case, such as motions, the disclosure statement and the plan of reorganization; (d) assisting First Bankers in filing its proof of claims; and (e) performing all other legal services for First Bankers as ESOP Trustee which may be necessary. Subject to approval of the Court, services will be billed at Boylan Brown's blended hourly rate of $400 per attorney and $170 per law clerks, paralegals and legal assistants. First Bankers has also agreed that Boylan Brown will be reimbursed for its expenses incurred in connection with this case. To the best of First Bankers' knowledge, Boylan Brown is disinterested and has no connection with First Bankers, the Debtors, their creditors, any other party-in-interest, their respective attorneys and accountants, the United States Trustee, or any person employed in the Office of the United States Trustee. To the best of First Bankers' knowledge, Boylan Brown holds no interest adverse to the estate. About Round Table Pizza Based in Concord, California, Round Table Pizza, Inc. -- http://www.roundtablepizza.com/-- is a private, 100% employee- owned company with corporate offices based in Concord, California. Round Table is largely owned by an Employee Stock Ownership Plan, with 3,190 participants. The ESOP is designed and intended to provide a source of retirement income to Round Table's loyal, long-term employees. Round Table filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 11-41431) on Feb. 9, 2011. Judge Roger L. Efremsky presides over the case. Scott H. McNutt, Esq., at McNutt Law Group serves as the Debtor's bankruptcy counsel. The Debtors also tapped Frank, Rimerman & Co. as an auditor and accountant. Round Table disclosed $1,066,524 in assets and $35,625,649 in liabilities as of the Chapter 11 filing. The case is jointly administered with affiliates -- The Round Table Franchise Corporation, Round Table Development Company, and Round Table Pizza Nevada LLC. The U.S. Trustee formed a three-member official committee of unsecured creditors. The committee has tapped Brownstein Hyatt Farber Schreck, LLP as counsel. The Debtor also tapped First Bankers Trust Services, Inc. as discretionary, independent, and institutional ESOP Trustee, and Johanson Berenson LLP as an ESOP counsel. First Bankers Trust Services, Inc., was appointed as institutional trustee of the Round Table Restated Employee Stock Ownership Plan and Trust (ESOP). Johanson Berenson LLP serves as an ESOP counsel. ROUND TABLE: Franchisees Say Exit Plan is 'Dead On Arrival' ----------------------------------------------------------- Dow Jones' DBR Small Cap reports that franchisees say Round Table Pizza Inc.'s plan to exit bankruptcy is "dead on arrival" as long as the pizza chain fails to remedy such alleged wrongdoing as its acceptance of vendor kickbacks and mishandled funds. About Round Table Pizza Based in Concord, California, Round Table Pizza, Inc. -- http://www.roundtablepizza.com/-- is a private, 100% employee- owned company with corporate offices based in Concord, California. Round Table is largely owned by an Employee Stock Ownership Plan, with 3,190 participants. The ESOP is designed and intended to provide a source of retirement income to Round Table's loyal, long-term employees. Round Table filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 11-41431) on Feb. 9, 2011. Judge Roger L. Efremsky presides over the case. Scott H. McNutt, Esq., at McNutt Law Group serves as the Debtor's bankruptcy counsel. The Debtors also tapped Frank, Rimerman & Co. as an auditor and accountant. Round Table disclosed $1,066,524 in assets and $35,625,649 in liabilities as of the Chapter 11 filing. The case is jointly administered with affiliates -- The Round Table Franchise Corporation, Round Table Development Company, and Round Table Pizza Nevada LLC. The U.S. Trustee formed a three-member official committee of unsecured creditors. The committee has tapped Brownstein Hyatt Farber Schreck, LLP as counsel. The Debtor also tapped First Bankers Trust Services, Inc. as discretionary, independent, and institutional ESOP Trustee, and Johanson Berenson LLP as an ESOP counsel. First Bankers Trust Services, Inc., was appointed as institutional trustee of the Round Table Restated Employee Stock Ownership Plan and Trust (ESOP). Johanson Berenson LLP serves as an ESOP counsel. RUSS COMPANIES: $52 Million in Inventory to Be Liquidated --------------------------------------------------------- Michael Bathon at Bloomberg News reports that a joint venture of SB Capital Group LLC, Worldwide Merchandise Resources Corporation and Just Inventory Solutions LLC was the winning bidder to liquidate the remaining inventory of iconic gift-maker, The Russ Companies Inc. The joint venture said the inventory was worth more than $52 million at suggested retail prices. "During its almost 50 years in business, The Russ Companies, Inc., has been a major force in the gift business. With its widespread availability and its unsurpassed reputation for quality, the Russ Berrie brand has set the industry standard," the joint venture said in a statement. The Russ Companies based in Wayne, New Jersey, makes gifts such as teddy bears and other plush toys, including licensed products such as Raggedy Ann & Andy, Curious George, Scooby Doo, Barbie Pets, Corduroy and The Simpsons. The company also makes memorial and seasonal gifts. The Company sought Chapter 7 bankruptcy protection (Bankr. D. N.J. Case No. 11-22471) on April 21, 2011, in Newark, New Jersey, according to court documents. The Company estimated debt of as much as $50 million. SAND HILL: Court Confirms Chapter 11 Plan of Reorganization ----------------------------------------------------------- On Aug. 10, 2011, the U.S. Bankruptcy Court for the Eastern District of Texas entered an order confirming Sand Hill Foundation, LLC, Sand Hill Panola SWD#2 LLC and Sand Hill Panola SWD#5 LLC's Second Amended Consolidated Chapter 11 Plan of Reorganization dated July 28, 2011. As reported in the TCR on June 9, 2011, the Plan generally provides for the distribution of sales proceeds for the payment of all Allowed Claims, including provision for the pursuit of any unresolved causes of action and objecting to Disputed Claims. To accomplish this, the Plan generally provides for the following to occur prior to the Effective Date: (i) assumption of the Assigned Contracts; (ii) the filing of objections to Disputed Claims and otherwise continue the reorganization process, in each case pursuant to the oversight of the Bankruptcy Court; (iii) the creation of reasonable reserves for Disputed Claims, and the making of distributions to holders of Allowed Claims as provided in the Plan; and (iv) the rejection of all remaining Executory Contracts and unexpired Leases of the Debtors. The Plan further provides for the Reorganized Debtors to continue business without the Bankruptcy Court's supervision. Pursuant to the terms of the Plan, Sand Hill Panola SWD #2 LLC and Sand Hill Panola SWD #5 LLC will merge with Sand Hill Foundation, LLC and Sand Hill Foundation, LLC, the Reorganized Debtor, will continue in business. A copy of the Debtors' Second Amended Consolidated Chapter 11 Plan of Reorganization, as modified, is available at: http://bankrupt.com/misc/sandhill.orderconfirmingplan.pdf About Sand Hill Sand Hill Foundation, LLC is an oilfield service and construction company. Sand Hill Foundation employs 145 people and owns assets in the approximate amount of $10,000,000 including numerous vehicles and equipment pieces of equipment. Sand Hill Panola SWD #2 LLC owns a saltwater disposal well in Panola County, Texas scheduled at over $2,500,000. Sand Hill Panola SWD #5 LLC also owns a saltwater disposal well in Panola County, Texas scheduled at over $1,500,000. The Company filed for Chapter 11 bankruptcy protection (Bankr. E.D. Tex. Case No. 10-90209) on May 25, 2010. Jeffrey Wells Oppel, Esq., at Oppel, Goldberg & Saenz P.L.L.C., assists the Debtor in its restructuring effort. The Company estimated its assets and debts at $10 million to $50 million. The U.S. Trustee has formed an official committee of unsecured creditors in the Chapter 11 case. SCOTT OLSON: Case Summary & 3 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Scott Olson Digging, Inc. P.O. Box 1402 Huron, SD 57350 Bankruptcy Case No.: 11-40680 Chapter 11 Petition Date: August 19, 2011 Court: United States Bankruptcy Court District of South Dakota (Southern (Sioux Falls)) Judge: Charles L. Nail, Jr. Debtor's Counsel: Patrick T. Dougherty, Esq. DOUGHERTY & DOUGHERTY, LLP P.O. Box 2376 Sioux Falls, SD 57101-2376 Tel: (605) 335-8586 E-mail: pat@ptdlawfirm.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's three largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/sdb11-40680.pdf The petition was signed by Scott Olson, director-president. SEAHAWK DRILLING: Parent Objects to Amended Ch. 11 Plan ------------------------------------------------------- BankruptcyData.com reports that Seahawk Drilling's former parent company, Pride International, filed with the U.S. Bankruptcy Court an objection to the Debtors' Amended Chapter 11 Plan. According to Pride, "In addition to violating the absolute priority rule by providing for equity to receive a distribution before all creditors are paid in full, the Plan violates the Bankruptcy Code's requirements that a plan provide similar treatment to similarly situated creditors and not unfairly discriminate among creditor classes. The Plan improperly treats holders of disputed claims differently than holders of allowed claims." Pride requested the Plan be amended to prevent equity from receiving a distribution until all allowed claims are first paid in full. The Court has scheduled an Aug. 30, 2011, confirmation hearing. About Seahawk Drilling Houston, Texas-based Seahawk Drilling, Inc., engages in a jackup rig business in the United States, Gulf of Mexico, and offshore Mexico. It offers rigs and drilling crews on a day rate contractual basis. The Company and several affiliates filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Lead Case No. 11-20089) on Feb. 11, 2011. Berry D. Spears, Esq., and Jonathan C. Bolton, Esq., at Fullbright & Jaworkski L.L.P., in Houston, serve as the Debtors' bankruptcy counsel. Shelby A. Jordan, Esq., and Nathaniel Peter Holzer, Esq. at Jordan, Hyden, Womble, Culbreth & Holzer, P.C., in Corpus Christi, Texas, serve as the Debtors' co-counsel. Alvarez and Marsal North America, LLC, is the Debtors' restructuring advisor. Simmons & Company International is the Debtors' transaction advisor. Kurtzman Carson Consultants LLC is the Debtors' claims agent. Judy A. Robbins, U.S. Trustee for Region 7, appointed three creditors to serve on an Official Committee of Unsecured Creditors of Seahawk Drilling Inc. and its debtor-affiliates. Heller, Draper, Hayden, Patrick & Horn, L.L.C., represents the creditors committee. In its amended schedules, Seahawk Drilling disclosed $208,190,199 in assets and $438,458,460 in liabilities as of the petition date. Seahawk filed for Chapter 11 protection to complete the sale of all assets to Hercules Offshore, Inc. The bankruptcy court approved an Asset Purchase Agreement between Hercules Offshore and its wholly owned subsidiary, SD Drilling LLC, and Seahawk Drilling, pursuant to which Seahawk agreed to sell to Hercules, and Hercules agreed to acquire from Seahawk, all 20 of Sellers' jackup rigs and related assets, accounts receivable and cash and certain liabilities of Sellers in a transaction pursuant to 11 U.S.C. Sec. 363. The deal was valued at about $176 million when it received court approval. The deal closed on April 27, 2011. SHAMOCK-SHAMROCK: Taps George Gingo as Litigation Attorney ---------------------------------------------------------- Shamrock-Shamrock Inc. asks the U.S. Bankruptcy Court for the Middle District of Florida for permission to employ George Gingo, Esq., to represent the Debtor in certain claims litigation proceedings. The Debtor tells the Court that it is in need of an attorney versed in bankruptcy claims litigation law to represent it before the Court relating to claims by Deutsche Bank/AHMSI for the properties located at 371 Atlantic Ave, Ormond Beach, Flordia, and 3110 John Anderson, Ormond Beach, Florida. The claims would be treated as unsecured creditors in the Chapter 11 Plan of the Debtor due to fraud involved in the execution of certain mortgage/foreclosure documents. The Debtor assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Daytona Beach, Florida-based Shamrock-Shamrock Inc. owns 70 parcels of Florida real property. It filed for Chapter 11 protection (Bankr. M.D. Fla. Case No. 11-07061) on May 10, 2011. Judge Arthur B. Briskman presides over the case. The Law Offices of Mickler & Mickler serves as bankruptcy counsel. SHENGDATECH INC: Court Enters Temporary Restraining Order --------------------------------------------------------- ShengdaTech, Inc. disclosed that the U.S. Bankruptcy Court for the District of Nevada granted the Company's motion for a temporary restraining order ("TRO") enjoining the Company's shareholders and the members of the Company's Board of Directors, from taking any action, including the commencement of any court or administrative proceeding that seeks to change or has the purpose or effect of changing the composition of the Company's Special Committee or the appointment of the Chief Restructuring Officer ("CRO"), Mr. Michael Kang, from taking any action including the commencement of any court or administrative proceeding that seeks to hinder, obstruct, impede or otherwise interfere with the Special Committee's and the CRO's previously announced investigation(s) and prosecution of the Company's Chapter 11 case, and from taking any action that seeks to appoint or has the purpose or effect of appointing Mr. Gongbo Wang, or anyone else, to the Company's Board of Directors. The TRO is in addition to the automatic stay imposed by Section 362(a) of the U.S. Bankruptcy Code. The TRO shall remain in place until conclusion of the hearing on the Company's request for a preliminary injunction, which hearing is currently scheduled for September 2, 2011. Additionally, on August 22, 2011, the SEC served the Company with a subpoena for documents in connection with a fact-finding investigation by the SEC with regard to the Company. The Company is committed to cooperating with the SEC. It is not possible at this time to predict the outcome of the SEC investigation, including whether or when any proceedings might be initiated, when these matters may be resolved or what, if any, penalties or other remedies may be imposed. The SEC has informed the Company that the investigation should not be construed as an indication that any violations of law have occurred. 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. SHENGDATECH INC: Taps Michael Kang as Chief Restructuring Officer ----------------------------------------------------------------- BankruptcyData.com reports that ShengdaTech filed with the U.S. Bankruptcy Court a motion to retain Michael Kang of Alvarez & Marsal North America (Contact: Michael Kang) as chief restructuring officer for an hourly rate of $675 for Mr. Kang, and the following hourly rates for other A&M employees: managing director at $650 to $850, director at $450 to $650, associate/consultant at $350 to $450, and analyst at $250 to $350. 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. SILVER FOX: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Silver Fox, LLC 2940 U.S. Highway 60 East Republic, MO 65738 Bankruptcy Case No.: 11-61796 Chapter 11 Petition Date: August 19, 2011 Court: United States Bankruptcy Court Western District of Missouri (Springfield) Judge: Arthur B. Federman Debtor's Counsel: David E. Schroeder, Esq. DAVID SCHROEDER LAW OFFICES, PC 1524 East Primrose St., Suite A Springfield, MO 65804-7915 Tel: (417) 890-1000 Fax: (417) 886-8563 E-mail: bk1@dschroederlaw.com Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Terry McKee, managing member. SOUTH EDGE: Meritage Homes Faces $13-Mil. Suit Over Project Loan ---------------------------------------------------------------- Dan Rivoli at Bankruptcy Law360 reports that JPMorgan Chase Bank NA on Tuesday hit Meritage Homes Corp. with a $13 million lawsuit, claiming it is liable under an agreement to repay its share of a loan given to a residential community developer that went bankrupt. Law360 relates that the suit, filed in Nevada federal court, targets Meritage and its subsidiary Meritage Homes of Nevada Inc. - one of eight members of South Edge LLC, a now-bankrupt company that developed a $1 billion residential community in Las Vegas' suburbs. About South Edge Las Vegas, Nevada-based South Edge LLC owns the Inspirada project, an uncompleted 2,000-acre residential development in Henderson, Nevada, about 16 miles (26 kilometers) southeast of Las Vegas. The eight owners of the project include an affiliate of KB Home, a 49% owner. Other owners are Coleman Toll LP with 10.5%, Pardee Homes Nevada Inc. with 4.9%, Meritage Homes with 3.5%, and Beazer Homes USA Inc. with 2.6%. JPMorgan Chase Bank, N.A., Credit Agricole Corporate and Investment Bank, and Wells Fargo Bank, N.A., filed an involuntary chapter 11 bankruptcy petition (Bankr. D. Nev. Case No. 10-32968) on Dec. 9, 2010, against South Edge, LLC. The petitioning creditors are part of a lender group that provided a $595 million credit. New York-based JPMorgan serves as lender and agent for the group. South Edge filed motions to dismiss the involuntary petition. The Court conducted a contested trial on Jan. 24 and 25, 2011, and Feb. 2 and 3, 2011. On Feb. 3, 2011, the Court entered an order for relief under Chapter 11 of the Bankruptcy Code against the Debtor and issued an order directing the appointment of a chapter 11 trustee. The United States Trustee appointed Cynthia Nelson to serve as Chapter 11 trustee on Feb. 20, 2011. The Court approved the appointment three days later. South Edge is represented by lawyers at Klee, Tuchin, Bogdanoff and Stern LLP, and The Schwartz Law Firm, Inc., as legal counsel. The Chapter 11 trustee also tapped Schwartzer & McPherson Law Firm as local counsel. Petitioning creditors JPMorgan Chase Bank, N.A., and Wells Fargo Bank, N.A., are represented by lawyers at Morrison and Foerster LLP; and Lewis and Roca LLP. Credit Agricole is represented by lawyers at Haynes and Boone LLP, and Jolley Urga Wirth Woodbury & Standish. SPECTRAWATT INC: Plans Bankruptcy Auction of Assets on Sept. 28 --------------------------------------------------------------- Michael Bathon at Bloomberg News reports that SpectraWatt Inc., a solar cell manufacturer and former Intel Corp. unit, said it wants to sell the assets quickly and will seek bankruptcy court approval to hold the auction on Sept. 28. SpectraWatt said it is crucial that the sale proceed immediately because companies with assets similar to their own are also financial distressed, which would diminish the value of its assets. SpectraWatt has decided to sell substantially all its assets and will seek court approval of a bankruptcy auction. Although SpectraWatt has received interest from foreign companies, it hasn't secured a lead bidder for the auction because the potential foreign buyers aren't familiarity with U.S. bankruptcy sales, according to the report. "Within the next 3-6 months, there is a high likelihood that a significant amount of used solar cell manufacturing equipment and related assets will flood the market and drive down the value of the Debtor's assets" SpectraWatt's Chief Restructuring Officer and Chief Executive, Brad Walker, said in court papers. Road to Bankruptcy According to the report, SpectraWatt said it was forced to seek court protection due to competition from Chinese rivals, deterioration in the solar cell industry and disputes with vendors. "United States based manufacturers are under a great deal of stress because of the emergence of manufacturers in China, who receive considerable government and financial support," Mr. Walker, said. "This support, coupled with China's inexpensive production costs, have created a competitive advantage for Chinese manufacturers and allowed them to become price leaders within the industry." Evergreen Solar Inc., a rival U.S. solar panel maker, sought bankruptcy protection as well last week, owing creditors about $485.6 million. Evergreen's convertible noteholders have agreed to buy the company at auction offering to forgive debt owed to them instead of cash. About SpectraWatt Based in Hopewell Junction, New York, SpectraWatt Inc. was spun off from Intel in June 2008 and raised $50 million through a sale of preferred stock to its former parent and other investors including Goldman Sachs Group Inc.'s Cogentrix Energy LLC, PCG Clean Energy and Berlin-based solar panel maker Solon SE. The Company has also issued about $36.7 million in senior secured convertible notes. The Company has a manufacturing facility in Hopewell Junction designed to generate over 200 megawatts of production per year. The plant began operations in January 2010 with an initial capacity of only 30 megawatts per year. The Company began winding down its affairs late last year after encountering setbacks and shut down the lone manufacturing facility in March, and fired all its workers. SpectraWatt filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 11-37366) on Aug. 19, 2011, in Poughkeepsie, New York. Mark W. Wege, Esq., at King & Spalding LLP, serves as counsel to the Debtor. SpectraWatt estimated as much as $50 million in both debt and assets as of the Chapter 11 filing. SUNVALLEY SOLAR: Reports $208,610 Net Income in Second Quarter -------------------------------------------------------------- Sunvalley Solar, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income of $208,610 on $1.94 million of revenue for the three months ended June 30, 2011, compared with a net loss of $92,870 on $1.38 million of revenue for the same period a year ago. The Company also reported net income of $6,106 on $2.73 million of revenue for the six months ended June 30, 2011, compared with a net loss of $261,041 on $2.07 million of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $3.88 million in total assets, $3.84 million in total liabilities and $36,619 total stockholders' equity. As reported in the TCR on April 8, 2011, Sadler, Gibb and Associates, LLC, in Salt Lake City, Utah, expressed substantial doubt about Sunvalley Solar's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company had losses from operations of $375,839 and accumulated deficit of $958,924. According to the Company, the success of its business plan during the next 12 months and beyond will be contingent upon generating sufficient revenue to cover the Company's costs of operations /or upon obtaining additional financing. A full-text copy of the Form 10-Q is available for free at: http://is.gd/1n7Ul9 About Sunvalley Solar Sunvalley Solar, Inc., is a California-based solar power technology and system integration company. Since the inception of its business in 2007, the company has focused on developing its expertise and proprietary technology to install residential, commercial and governmental solar power systems. SWORDFISH FINANCIAL: Incurs $235,500 Net Loss in Second Quarter --------------------------------------------------------------- Swordfish Financial, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $235,520 on $43,750 of interest income for the three months ended June 30, 2011, compared with a net loss of $189,848 on $43,750 of interest income for the same period a year ago. The Company also reported a net loss of $722,724 on $87,500 of interest income for the six months ended June 30, 2011, compared with a net loss of $466,731 on $87,500 of interest income for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $3.84 million in total assets, $5.71 million in total liabilities and a $1.86 million total stockholders' deficit. The Company reported a net loss of $2.69 million on $0 of net sales for the year ended Dec. 31, 2010, compared with a net loss of $1.94 million on $0 of net sales during the prior year. As reported by the TCR on April 25, 2011, Patrick Rodgers, CPA, PA, in Altamonte Springs, Florida, 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 and negative cash flows from operations the past three years. A full-text copy of the Form 10-Q is available for free at: http://is.gd/rKV0Gw About Swordfish Financial Rockwall, Tex.-based Swordfish Financial, Inc., formerly Nature Vision, Inc., designed, manufactured and marketed outdoor recreation products primarily for the sport fishing and hunting markets. Based on the limited assets, product lines and resources remaining after the M&I Business Credit LLC liquidation, Swordfish Financial, Inc. has decided that there is not enough remaining of the Nature Vision operations to continue as an outdoor recreations products company and will concentrate on the business on being an asset recovery company and using the financial resources recovered to retire the Company's debts and invest in other businesses domestically and internationally. TEAM NATION: Posts $861,900 Net Income in Second Quarter -------------------------------------------------------- Team Nation Holdings Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income of $861,916 on $306,066 of total revenue for the three months ended June 30, 2011, compared with net income of $75,287 on $394,680 of total revenue for the same period a year ago. The Company also reported net income of $739,083 on $702,226 of total revenue for the six months ended June 30, 2011, compared with net income of $103,361 on $763,304 of total revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $3.19 million in total assets, $5.37 million in total liabilities and a $2.18 million total shareholders' deficit. As reported by the TCR on April 13, 2011, Kelly & Company, in Costa Mesa, Calif., said in its report that the Company's significant debt servicing requirements, its ongoing operating losses and negative cash flows along with the depressed value of its common stock gives raise to substantial doubt about the Company's ability to continue as a going concern. The Company has sustained recurring losses and negative cash flows from operations, at Dec. 31, 2010 it had negative working capital of $4.2 million, total liabilities of $6.9 million, and a stockholders' deficit of $3.9 million. The Company's only significant source of revenue, and its sole customer, is a related party. The Company expects that it will need to raise substantial additional capital to accomplish its business plan over the next several years and plans to generate the additional cash needed through the sale of its common stock that currently has a depressed value. The Company's most significant asset is a group of eight non-current notes receivable - related party issued by the Company's directors, amounting to $2.2 million at Dec. 31, 2010 (representing 73% of total assets). The Company was not able to review and complete its Quarterly Report on Form 10-Q without incurring unreasonable effort and expense in connection with accurately preparing and presenting all necessary disclosures. Thus, the Company was be unable to file the periodic report in a timely manner. A full-text copy of the Form 10-Q is available for free at: http://is.gd/iWkFgR About Team Nation Newport Beach, Calif.-based Team Nation Holdings Corporation is a management and services company specializing in management solutions for title companies and providing title production services. The Company reported net income of $553,157 on $2.64 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $3.62 million on $2.02 million of revenue during the prior year. TELECONNECT INC: Incurs $948,000 Net Loss in June 30 Quarter ------------------------------------------------------------ Teleconnect Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $948,319 on $16,430 of sales for the three months ended June 30, 2011, compared with a net loss of $183,388 on $258 of sales for the same period during the prior year. The Company also reported a net loss of $1.72 million on $36,344 of sales for the nine months ended June 30, 2011, compared with net income of $2.34 million on $234,768 of sales for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $9.42 million in total assets, $11.42 million in total liabilities, all current, and a $1.99 million total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/6Ce7nJ About Teleconnect Inc. Based in Breda, in The Netherlands, Teleconnect Inc. (OTC BB: TLCO) Teleconnect Inc. (initially named Technology Systems International Inc.) was incorporated under the laws of the State of Florida on November 23, 1998. Serving as a telecommunications service provider in Spain for almost 9 years, the Company never fully reached expectations and decided late in 2008 to change its course of business. In November 2009, 90% of the Company's telecommunication business was sold to a Spanish group of investors, and on October 15, 2010, the Company completed the acquisition of Hollandsche Exploitatie Maatschappij BV (HEM), a Dutch entity established in 2007. HEM's core business involves the age validation of consumers when purchasing products which cannot be sold to minors, such as alcohol or tobacco. The Company regards this age validation business as its new strategic direction. The Dutch companies acquired in 2007 (Giga Matrix, The Netherlands, 49% and Photowizz, The Netherlands, 100%) are considered to function complementary to this new service offering. Through the purchase of HEM and its ownership in Photowizz and Giga Matrix the Company now controls all four pillars under its business model: the manufacturing and leasing of electronic age validation equipment, the performance of age validation transactions remotely, the performance of market surveys and the broadcasting of in-store commercial messages using the age validation equipment in between age checks. Coulter & Justus, P.C., in Knoxville, Tenn., after auditing the Company's results for fiscal year ended Sept. 30, 2010, 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 and has a net capital deficiency in addition to a working capital deficiency. The Company reported net income of US$1,972,838 on US$254,446 of revenue for fiscal 2010, compared with a net loss of US$1,828,443 on US$361,989 of revenue for fiscal 2009. TELESERVICES GROUP: Judge Expresses Frustration Over Stern Ruling ----------------------------------------------------------------- Bankruptcy Judge Jeffrey R. Hughes is the latest to reversed a prior decision in Teleservices Group, Inc.'s bankruptcy in view of Stern v. Marshall. His 16-page Opinion dated Aug. 17, 2011, points out how the Supreme Court ruling has caused confusion over a bankruptcy judge's ability to enter a final judgment. "Prior to Stern, I did have a standard -- 28 U.S.C. Sec. 157(b)(2) -- to serve as my guide. But now I am told that that standard is unreliable when tested against the Constitution itself," Judge Hughes said. According to Judge Hughes, Stern v. Marshall reveals "how misplaced my confidence has been," and that the proceedings in Stern "rivaled Dickens' infamous Jarndyce and Jarndyce in both complexity and endurance." "For over twenty-five years, my colleagues and I have operated with the understanding that we were properly constituted judges capable of rendering final judgments in many, but not all, matters arising in connection with a bankruptcy proceeding. That understanding derives from 28 U.S.C. Sec. 157 and its identification of so-called 'core proceedings,'" explained Judge Hughes. Under this paradigm, bankruptcy judges are enabled to enter final orders or judgments concerning matters that are typically associated with the administration of a bankruptcy proceeding. However, bankruptcy judges do not have that ability when the matter arises outside of this core. For example, a trustee's effort to collect an account receivable from a debtor's customer is considered non-core. Section 157 itself establishes this distinction by providing a long list of matters that would fall within the parameters of a core proceeding. Some seem obvious -- e.g., objections to discharge, confirmations of plans, and orders to turnover property of the estate. Others are intentionally vague but still seem to fit. For instance, any matter "concerning the administration of the estate" is a core proceeding. 28 U.S.C. Sec. 157(b)(2)(A). Moreover, the list provided is not exclusive. "Core proceedings include, but are not limited to . . . ." 28 U.S.C. Sec. 157(b)(2). In the lawsuit styled, Marcia R. Meoli, Trustee, v. The Huntington National Bank, Adv. Pro. No. 07-80037 (Bankr. W.D. Mich.), Huntington filed a motion to amend Judge Hughes' April 28, 2009 pretrial order. The requested amendment would eliminate the order's designation of the adversary proceeding as a matter in which the Bankruptcy Court can enter a final determination subject only to ordinary appellate review. Huntington contends that the Bankruptcy Court lack the constitutional authority to enter what could be a multi-million dollar judgment against it arising from fraudulent transfers. Judge Hughes agrees he does not have that authority in light of Stern. "My frustration with Stern is that it offers virtually no insight as to how to recalibrate the core/non-core dichotomy so that I can again proceed with at least some assurance that I will not be making the same constitutional blunder with respect to some other aspect of Authority Section 157(b)(2)," Judge Hughes said. "Stern certainly reaffirms that only an Article III judge can enter a judgment associated with the estate's recovery of contract and tort claims designed to augment the estate. Stern also emphasizes that the guaranty of such oversight cannot be avoided by making the recovery part of the claims allowance process." Judge Hughes said Stern is silent as to how much further this constitutional protection extends into the bankruptcy process. "For example, Authority Section 157(b)(2) also gives me the statutory authority to enter final orders regarding objections to claims, the estate's procurement of credit, and the turnover of the estate's property," Judge Hughes explained. "I would assume that a few of these activities remain within the authority that I am able to exercise independent of an Article III judge. However, Stern's reticence leaves me wondering whether my assumption is a good one. At most, I am told that a judicially recognized 'public rights' exception might permit a non-Article III judge to act on his own with respect to some aspects of the bankruptcy process. However, as Stern itself concedes, the Court has yet to give clear definition to this exception as a general proposition, let alone as to how it might apply in the bankruptcy arena." Judge Hughes also noted that Congress, through 11 U.S.C. Section 363(b), has directed that the estate's property cannot be disposed of by the bankruptcy trustee outside of the ordinary course without "notice and a hearing." Sections 1129, 1225, and 1325 all contemplate a court confirming plans submitted in cases filed under Chapters 11, 12, and 13. "If I continue to order sales as I did prior to Stern, is not the purchaser of that property left with the risk that the sale will be later declared null because it was not authorized by the right court? Cf. 11 U.S.C. Sec. 549(a)(2)(B). And is not the debtor of a Chapter 13 plan confirmed by me post-Stern left to wonder whether the discharge he is to receive as a consequence of the ordered plan will really protect him from a creditor's subsequent efforts to collect?," Judge Hughes wondered. Judge Hughes said one alternative would be "to play it safe and simply refer without reflection every future determination I make to a district judge for his or her final review. However, I do not see how I can do so in good faith given Authority Section 157(b)(3)'s direction that I must decide even in instances when not requested whether I have the ability or not under that section to enter a final order. 28 U.S.C. Sec. 157(b)(3). Moreover, I suspect that the Article III judges in my district would not be pleased with the extra workload such an approach would impose upon them," he pointed out. Judge Hughes' opinion is available at http://is.gd/xZJwDCfrom Leagle.com. Teleservices Group, Inc., filed for Chapter 11 bankruptcy (Bankr. W.D. Mich. Case No. 05-00690) in 2005. TELIPHONE CORP: Reports $1.7-Mil. Net Income in June 30 Quarter --------------------------------------------------------------- Teliphone Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income applicable to common shares of US$1.69 million on US$1.13 million of revenue for the three months ended June 30, 2011, compared with net income applicable to common shares of US$96,367 on $0 of revenue for the same period during the prior year. The Company also reported net income applicable to common shares of US$1.91 million on US$1.13 million of revenue for the nine months ended June 30, 2011, compared with a net loss applicable to common shares of $157,224 on US$79,270 of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed US$2.85 million in total assets, US$986,359 in total liabilities and US$1.87 million total stockholders' equity. The Company reported a net loss of US$30,587 on US$1.0 million of revenues for the three months ended Dec. 31, 2010, compared with net income of US$150,673 on US$1.4 million of revenues for the same period of the prior fiscal year. As reported in the Troubled Company Reporter on Jan. 5, 2011, KBL, LLP, in New York, expressed substantial doubt about Teliphone Corp.'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 sustained operating losses and significant working capital deficits in the past few years. The Company was unable to compile the necessary financial information required to prepare a complete filing. Thus, the Company was be unable to file the periodic report in a timely manner without unreasonable effort or expense. A full-text copy of the Form 10-Q is available for free at: http://is.gd/5DURm9 About Teliphone Corp. Montreal, Canada-based Teliphone Corp. (OTCQB: TLPH) -- http://www.teliphone.ca/-- provides broadband telephone services utilizing its voice over Internet protocol (VoIP) technology platform. TETON AIR: Files Schedules of Assets and Liabilities ---------------------------------------------------- Teton Air Ranch LLC filed with the U.S. Bankruptcy Court for the District of Ohio its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------------ ----------- A. Real Property $5,000,000 B. Personal Property $8,799,357 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $15,195,420 E. Creditors Holding Unsecured Priority Claims 120,236 F. Creditors Holding Unsecured Non-priority Claims 9,403,936 ------------ ------------ TOTAL $13,799,537 $24,719,592 A full-text copy of the Schedules is available for free at http://bankrupt.com/misc/TETONAIR_sal.pdf Teton Air Ranch LLC, in Pocatello, Idaho, filed for Chapter 11 bankruptcy (Bankr. D. Idaho Case No. 11-41190) on July 18, 2011. Judge Jim D. Pappas presides over the case. Daniel C. Green, Esq., at Racine Olson Nye Budge & Bailey, serves as bankruptcy counsel. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Corey Simon, authorized representative. TEXAS RANGERS: Tom Hicks Hits Back on Lawsuit by Administrator -------------------------------------------------------------- Barry Shlachter at Star-Telegram reports that former Texas Rangers owner Tom Hicks fired back at a bankruptcy administrator's lawsuit against him, with a spokeswoman calling it a "money grab" and denouncing allegations that he stole millions from the Texas Rangers as a "deceptive personal attack." According to the report, Alan M. Jacobs, the team's bankruptcy administrator responsible for collecting, then distributing hundreds of millions of dollars due creditors, filed suit in Dallas on Monday, claiming that Mr. Hicks "embarked on a scheme to build a real estate empire on the backs of the Texas Rangers' players and creditors and fans of the team." The report says Mr. Hicks was taken completely by surprise by the litigation, said spokeswoman Lisa LeMaster, who emphatically denied that any team funds were misdirected to enrich Hicks or his property firm. The report notes the suit aims to retrieve tens of millions of dollars that Jacobs says the Rangers were forced to spend on projects that benefitted Mr. Hicks and his firm, Ballpark Real Estate, which owns parking lots near the Ballpark at Arlington and Cowboys Stadium. More than $30 million was misdirected, it says. About Texas Rangers Baseball Texas Rangers Baseball Partners owned and operated the Texas Rangers Major League Baseball Club, a professional baseball club in the Dallas/Fort Worth Metroplex. TRBP is a Texas general partnership, in which subsidiaries of HSG Sports Group LLC own a 100% stake. Controlled by Thomas O. Hicks, HSG also indirectly wholly-owns Dallas Stars, L.P., which owns and operates the Dallas Stars National Hockey League franchise. The Texas Rangers have had five owners since the club moved to Arlington in 1972. Mr. Hicks became the fifth owner in the history of the Texas Rangers on June 16, 1998. Texas Rangers Baseball Partners filed a Chapter 11 petition (Bankr. N.D. Tex. Case No. 10-43400) on May 24, 2010. The partnership filed simultaneously with the bankruptcy petition a Chapter 11 plan that contemplated the sale of the club to an entity formed by a group that includes the current President of the Texas Rangers, Nolan Ryan, and Chuck Greenberg, a sports lawyer and minor league club owner. In its petition, Texas Rangers Baseball Partners said it had both assets and debt of less than $500 million. Martin A. Sosland, Esq., at Weil, Gotshal & Manges LLP, served as bankruptcy counsel to the Debtor. Forshey & Prostok LLP was the conflicts counsel. Parella Weinberg Partners LP served as financial advisor. Major League Baseball was represented by Sandy Esserman, Esq., at Stutzman, Bromberg, Esserman & Plifka PC. Lenders to the Texas Rangers sought to force the baseball team's equity owners -- Rangers Equity Holdings, L.P. and Rangers Equity Holdings GP, LLC -- into bankruptcy court protection (Bankr. N.D. Tex. Case No. 10-43624 and 10-43625). The lenders, a group that includes investment funds Monarch Alternative Capital and Kingsland Capital Management, filed an involuntary bankruptcy petition on May 28, 2010 against the two companies. The two companies were not included in the May 24 Chapter 11 filing of TRBP. U.S. Bankruptcy Judge Stacey G.C. Jernigan on Aug. 5, 2010 confirmed the Debtor's Prepackaged Plan of Reorganization, as amended four times. The judge's confirmation order cleared the way for a group of Hall of Fame pitcher Nolan Ryan, and Pittsburgh sports attorney and minor-league team owner Charles Greenberg to purchase the Texas Rangers. The Ryan group paid $385 million in cash and assumed $208 million in liabilities. The Ryan group outbid Dallas Mavericks owner Mark Cuban at an auction. THINK3 INC: Taps Asaha Law Offices for Japanese Proceeding ---------------------------------------------------------- Think3 Inc. asks the Hon. Christopher Mott of the U.S. Bankruptcy Court for the Western District of Texas for permission to employ Asahi Law Offices as special counsel to represent and advise it in the chapter 11 case with respect to the Japanese proceeding, the Debtor's interest in the Japanese subsidiary, the Debtor's business interests in Japan, and Japanese legal issues. The firm's professionals will charge the Debtor at these rates: Professional Designation Hourly Rate ------------ ----------- ----------- Satoru Mitsumori Partner JPY 44,000 ($569.62) Noriyasu Kaneko Partner JPY 40,000 ($517.83) Masaru Okamoto Partner JPY 35,000 ($453.10) The Debtor assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached at: ASAHI LAW OFFICES Attn: Saturo Mitsumori 13F Marunouchi MY Plaza 1-1, Marunouchi, 2-Chome Chiyoda-ku, Tokyo 100-8385 Japan Tel: (03) 5219 0002 Fax: (03) 5219 2221 E-mail: sm@alo.jp About think3 Think3 Inc. develops computer-aided design software. Think3 has been a debtor in corporate reorganization proceedings under the laws of Italy pending before the Court of Bologna since March 14, 2011. Dr. Andrea Ferri was appointed to act as trustee in the Italian Proceedings Think3 sought Chapter 11 protection (Bankr. W.D. Tex. Case No. 11-11252) on May 18, 2011, in Austin, its hometown, three months after creditors filed an involuntary bankruptcy petition against the company in a court in Bologna, Italy. The company didn't oppose the involuntary bankruptcy. Rebecca Roof was appointed as Chief Restructuring Officer. The Italian trustee filed a Chapter 15 petition (Bankr. W.D. Tex. Case No. 11-11925) for Think3 in bankruptcy court in Austin on Aug. 1, claiming she has the right to control the company's restructuring through the Italian court. Since the Italian bankruptcy was filed, there have been continuing disputes over the right to control the company's assets. ESW Capital LLC acquired Think3 in September. The primary debt is a $23 million tax liability in Italy. The Italian Trustee is represented by: Joel M. Walker, Esq. DUANE MORRIS LLP Suite 5010, 600 Grant Street Pittsburgh, PA 15219-2802 E-mail: JMWalker@duanemorris.com - and - Wesley W. Yuan, Esq. DUANE MORRIS LLP 1330 Post Oak Boulevard, Suite 800 Houston, TX 77056 Tel: (713) 402-3911 Fax: (713) 513-5848 E-mail: wwyuan@duanemorris.com The Chapter 15 petition estimates Think3's assets and debts to be between $10 million to $50 million. Versata FZ-LLC, Versata Development Group, Inc., Versata Software, Inc., ESW Capital, LLC, the parent of Think3, and Gensym Cayman L.P., the DIP Lender, are represented by: Berry D. Spears, Esq. FULBRIGHT & JAWORSKI L.L.P. 600 Congress Avenue, Suite 2400 Austin, TX 78701-2878 Telephone: (512) 536-5246 Facsimile: (512) 536-4598 E-mail: bspears@fulbright.com - and - Zack A. Clement, Esq. John D. Cornwell, Esq. Camisha L. Simmons, Esq. FULBRIGHT & JAWORSKI L.L.P. 1301 McKinney Street, Suite 5100 Houston, TX 77010-3095 Telephone: (713) 651-5151 Facsimile: (713) 651-5246 E-mail: zclement@fulbright.com jcornwell@fulbright.com - and - G. Larry Engel, Esq. Vincent J. Novak, Esq. Kristin Hiensch, Esq. MORRISON & FOERSTER LLP 425 Market Street San Francisco, CA 94105-2482 Telephone: (415) 268-7000 Facsimile: (415) 268-7522 E-mail: lengel@mofo.com vnovak@mofo.com khiensch@mofo.com THINK3 INC: Court Approves Federico Cornia for Italian Case ----------------------------------------------------------- The Hon. H. Christopher Mott of the U.S. Bankruptcy Court for the Western District of Texas authorized Think3 Inc. to employ Federico Cornia as special counsel to represent and advise it in this chapter 11 case with respect to the Italian Proceeding and recovery of property of the estate from the Italian Trustee. Papers filed with the Court did not disclosed Ms. Cornia's compensation rate. The Debtor assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Ms. Cornia can be reached at: Studio Legale Cornia Attn: Federico Cornia Via Garibaldi n. 3 40124 Bologna Italy Tel: (39) 051 232008 Fax: (39) 051 232668 E-mail: cornialex@studiolegalecornia.it About think3 Think3 Inc. develops computer-aided design software. Think3 has been a debtor in corporate reorganization proceedings under the laws of Italy pending before the Court of Bologna since March 14, 2011. Dr. Andrea Ferri was appointed to act as trustee in the Italian Proceedings Think3 sought Chapter 11 protection (Bankr. W.D. Tex. Case No. 11-11252) on May 18, 2011, in Austin, its hometown, three months after creditors filed an involuntary bankruptcy petition against the company in a court in Bologna, Italy. The company didn't oppose the involuntary bankruptcy. Rebecca Roof was appointed as Chief Restructuring Officer. The Italian trustee filed a Chapter 15 petition (Bankr. W.D. Tex. Case No. 11-11925) for Think3 in bankruptcy court in Austin on Aug. 1, claiming she has the right to control the company's restructuring through the Italian court. Since the Italian bankruptcy was filed, there have been continuing disputes over the right to control the company's assets. ESW Capital LLC acquired Think3 in September. The primary debt is a $23 million tax liability in Italy. The Italian Trustee is represented by: Joel M. Walker, Esq. DUANE MORRIS LLP Suite 5010, 600 Grant Street Pittsburgh, PA 15219-2802 E-mail: JMWalker@duanemorris.com - and - Wesley W. Yuan, Esq. DUANE MORRIS LLP 1330 Post Oak Boulevard, Suite 800 Houston, TX 77056 Tel: (713) 402-3911 Fax: (713) 513-5848 E-mail: wwyuan@duanemorris.com The Chapter 15 petition estimates Think3's assets and debts to be between $10 million to $50 million. Versata FZ-LLC, Versata Development Group, Inc., Versata Software, Inc., ESW Capital, LLC, the parent of Think3, and Gensym Cayman L.P., the DIP Lender, are represented by: Berry D. Spears, Esq. FULBRIGHT & JAWORSKI L.L.P. 600 Congress Avenue, Suite 2400 Austin, TX 78701-2878 Telephone: (512) 536-5246 Facsimile: (512) 536-4598 E-mail: bspears@fulbright.com - and - Zack A. Clement, Esq. John D. Cornwell, Esq. Camisha L. Simmons, Esq. FULBRIGHT & JAWORSKI L.L.P. 1301 McKinney Street, Suite 5100 Houston, TX 77010-3095 Telephone: (713) 651-5151 Facsimile: (713) 651-5246 E-mail: zclement@fulbright.com jcornwell@fulbright.com - and - G. Larry Engel, Esq. Vincent J. Novak, Esq. Kristin Hiensch, Esq. MORRISON & FOERSTER LLP 425 Market Street San Francisco, CA 94105-2482 Telephone: (415) 268-7000 Facsimile: (415) 268-7522 E-mail: lengel@mofo.com vnovak@mofo.com khiensch@mofo.com TIMBER SPECIALISTS: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Timber Specialists, Inc. fka Timber Specialists, LLC 2123 Shelton Avenue Statesville, NC 28677 Bankruptcy Case No.: 11-51285 Chapter 11 Petition Date: August 18, 2011 Court: United States Bankruptcy Court Middle District of North Carolina (Winston-Salem) Debtor's Counsel: Dirk W. Siegmund, Esq. IVEY, MCCLELLAN, GATTON, & TALCOTT, LLP Suite 500, 100 S. Elm St. P.O. Box 3324 Greensboro, NC 27402-3324 Tel: (336) 274-4658 Fax: (336) 274-4540 E-mail: dws@imgt-law.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ncmb11-51285.pdf The petition was signed by James E. Johnson, president. TONGJI HEALTHCARE: Incurs $84,000 Net Loss in Second Quarter ------------------------------------------------------------ Tongji Healthcare Group, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $84,228 on $594,672 of total operating revenue for the three months ended June 30, 2011, compared with a net loss of $170,272 on $463,696 of total operating revenue for the same period during the prior year. The Company also reported a net loss of $22,885 on $1.22 million of total operating revenue for the six months ended June 30, 2011, compared with a net loss of $292,282 on $848,463 of total operating revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $9.28 million in total assets, $9.09 million in total liabilities, all current, and $184,654 total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/sKA2GB About Tongji Healthcare Based in Nanning, Guangxi, the People's Republic of China, Tongji Healthcare Group, Inc., was incorporated in the State of Nevada on December 19, 2006. The Company operates Tongji Hospital, a general hospital with 105 licensed beds. The Company reported a net loss of $56,232 on $1.92 million of total operating revenue for the year ended Dec. 31, 2010, compared with a net loss of $324,335 on $1.87 million of total operating revenue during the prior year. As reported by the TCR on April 25, 2011, Kabani & Company, Inc., in Los Angeles, Calif., noted that the Company's significant operating losses and insufficient capital raise substantial doubt about its ability to continue as a going concern. TRADE UNION: Plan Confirmation Hearing Scheduled for Sept. 2 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Central District of California will convene a hearing on Sept. 2, 2011, at 10:00 a.m., to consider the confirmation of Trade Union International, Inc., and Duck House, Inc.'s proposed Plan of Reorganization. Objections, and ballots accepting or rejecting the Plan were due Aug. 19. The Debtors are required to file and serve any pleadings and evidence in support of confirmation of the Plan, including a plan confirmation brief, a summary of the votes and a reply to any objection to confirmation of the Plan by Aug. 26. According to the Amended Disclosure Statement, the Plan payments to creditors will be derived from the business revenues and available cash from the revolving credit facility with the Bank Group under the Settlement Agreement with the Bank Group. Payments to the Bank Group may also be funded from the Nantong Wheel Company transaction, from sale of assets that are not property of the estates, some of which the property serves as collateral under the Bank Group's Secured Claim and from new value contribution by the Changs whereby they will contribute 100% of the net sale proceeds generated from the sale of the Berendo Property. The cash in the estate as of the Confirmation Date and the cash which will be obtained by the estate after the Confirmation Date will be distributed to Allowed Administrative Claims, Allowed Priority Tax Claims, Allowed Secured Claims, and Allowed General Unsecured Claims on account of their Allowed Claims amounts pursuant to the provisions of the Plan. Under the Plan, certain secured creditors will have their debt obligations modified with respect to repayment terms and interest rates as provided in the Plan and are entitled to vote on the Plan. Other Secured Creditors will retain, unaltered, all of their legal, equitable and contractual rights and consequently, will be deemed to vote in favor of the Plan. Depending on the creditor's election for treatment, Allowed General Unsecured Claims will be paid either (i) 20% of their Allowed Claim within thirty days of the Effective Date, or (ii) 50% of their Allowed Claim payable in annual installments of 10% each over a five year period from the Effective Date, with the first 10% installment payment to be made within 30 days of the Effective Date. A full-text copy of the disclosure statement is available for free at http://bankrupt.com/misc/TRADEUNION_DS_firstamendment.pdf On July 28, the Official Committee of Unsecured Creditors in the Debtors' cases asked that the Court deny the confirmation of the Debtors' First Amended Plan. The Committee related that the Plan cannot be confirmed because, among other things: -- it provides for impermissible releases of claims against insiders of the Debtors; -- it implements a substantive consolidation of the Debtors in violation of section 1129 (a) (1) of the Bankruptcy Code; -- it lacks good faith by reason of improper treatment of insiders and affiliates of the Debtors; and -- it prevents the Committee and any creditors from filing on behalf of the estates any litigation against the Debtors' insiders or affiliates. About Trade Union Montclair, California-based Trade Union International Inc. supplies aftermarket aluminum alloy wheels and wheel and truck accessories. It filed for Chapter 11 bankruptcy protection on January 31, 2011 (Bankr. C.D. Calif. Case No. 11-13071). James C. Bastian, Jr., Esq., at Shulman Hodges & Bastian LLP, in Irvine, Calif., serves as the Debtor's bankruptcy counsel. In its schedules, the Debtor disclosed $11,350,971 in assets and $19,826,869 in liabilities. Affiliate Duck House, Inc., a California corporation, filed a separate Chapter 11 petition on January 27, 2011 (Bankr. C.D. Calif. Case No. 11-13072). Duck House, Inc., specializes is designing products for sports enthusiasts. Trade Union and Duck House are each owned one-half by Wen Pin Chang and one-half by Mei Lien Chang. TRADE UNION: Proposes Settlement with Bank Group Lenders -------------------------------------------------------- Trade Union International, Inc., and Duck House, Inc., ask the U.S. Bankruptcy Court for the Central District of California to approve: (i) a Settlement and compromise of Disputes with the Bank Group Lenders; and (ii) Ancillary Loan Modification Documents. The parties to the Settlement Agreement are the Debtors, Wen Pin Chang, an individual, Mei Lien Chang, an individual, and Wen Pin Chang And Mei Lien Chang as Trustees of the Chang Revocable Trust u/t/a Sept. 20, 1996, on the one hand, and Cathay Bank, a California banking corporation, as agent for itself and Chinatrust Capital Corporation, successor in interest to ChinaTrust Bank U.S.A. as a lender, and Cathay as L/C Issuer. The notes evidence various loans made by lenders to the Debtors in the aggregate principal amount of $21,200,000. According to the Debtors, the settlement and proposed loan modification will minimize the disruption and expense to the Debtors' business operations and is the best means for the lenders to be paid while preserving cash resources. The Debtors believe that they will be able to obtain sufficient immediate cash on terms more favorable than those provided for by the Loan Modification Agreement. The principal terms of settlement are, among other things: 1. The Loan Modification Agreement provides for a new revolving line of credit capped at $5,000,000 (with the initial advance to be determined at the time of closing), and three term loans, Term A in the principal amount of $1,370,000, Term B in the amount of $1,620,000 and Term C in the amount of $5,900,000. The line of credit will bear interest at the floating rate of prime plus 1.75% with a floor of 5% and a cap of 9% per annum and the term loans will each bear interest at the rate of 5% per annum and mature on the third anniversary of the date of a final order approving the Settlement Agreement. 2. The agent and lenders have agreed to restructure the Outstanding Indebtedness and the Loan Documents. Notwithstanding agent's consents, such consents by the agent will not and do not restrict the agent's rights under the Loan Modification Agreement, the Settlement Agreement, or applicable law in the event of any future defaults in payment. 3. Upon the Effective Date, borrower, each guarantor, the agent, each lender and L/C Issuer, will be forever relieve, release and discharge. A full-text copy of the Settlement Agreement is available for free at http://bankrupt.com/misc/TRADEUNION_settlement.pdf The Debtors set a Sept. 2 hearing on the approval of the Settlement Agreement. About Trade Union Montclair, California-based Trade Union International Inc. supplies aftermarket aluminum alloy wheels and wheel and truck accessories. It filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 11-13071) on Jan. 31, 2011. James C. Bastian, Jr., Esq., at Shulman Hodges & Bastian LLP, in Irvine, Calif., serves as the Debtor's bankruptcy counsel. In its schedules, the Debtor disclosed $11,350,971 in assets and $19,826,869 in liabilities. Affiliate Duck House, Inc., a California corporation, filed a separate Chapter 11 petition on January 27, 2011 (Bankr. C.D. Calif. Case No. 11-13072). Duck House, Inc., specializes is designing products for sports enthusiasts. Trade Union and Duck House are each owned one-half by Wen Pin Chang and one-half by Mei Lien Chang. TRANSAX INTERNATIONAL: Posts $8.8-Mil. Second Quarter Net Income ---------------------------------------------------------------- Transax International Limited filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting net income of $8.81 million on $0 of revenue for the three months ended June 30, 2011, compared with a net loss of $975,480 on $0 of revenue for the same period during the prior year. The Company also reported net income of $8.63 million on $0 of revenue for the six months ended June 30, 2011, compared with a net loss of $1.36 million on $0 of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $51,923 in total assets, $842,196 in total liabilities, all current, and a $790,273 total stockholders' deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/t2cWgK About Transax International Transax International Limited -- http://www.transax.com/-- primarily through its 55% owned subsidiary, Medlink Conectividade em Saude Ltda is an international provider of information network solutions specifically designed for healthcare providers and health insurance companies. The Company's MedLink Solution enables the real time automation of routine patient eligibility, verification, authorizations, claims processing and payment functions. The Company has offices located in Plantation, Florida and Rio de Janeiro, Brazil. The Company currently trades on the OTC Pink Sheet market under the symbol "TNSX" and the Frankfurt and Berlin Stock Exchanges under the symbol "TX6". The Company reported a net loss of $2.09 million on $0 of revenue for the year ended Dec. 31, 2010, compared with a net loss of $2.80 million on $0 of revenue during the prior year. As reported by the TCR on April 25, 2011, MSPC Certified Public Accountants and Advisors, in New York, 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 accumulated losses from operations of approximately $19.3 million, a working capital deficiency of approximately $10.8 million and a stockholders' deficiency of approximately $10.0 million at Dec. 31, 2010. Additionally,the Company sold its sole operating subsidiary. TRANSWEST RESORT: Creditors Object to Owner's Disclosure Statement ------------------------------------------------------------------ Erin Fuchs at Bankruptcy Law360 reports that several Transwest Resort Properties Inc. creditors objected Monday to the resort owner's disclosure statement for a Chapter 11 plan that calls for the restructuring of a mortgage loan and the investment of $30 million in new capital in the company. Objections poured into the Arizona bankruptcy court from PIM Ashford Subsidiary I LLC; Ashford Sapphire Acquisition LLC; Grasslawn Lodging LLC; and Westin Hotel Management LP, which operates the resorts owned by Transwest, Law360 says. About Transwest Resort Tucson, Arizona-based Transwest Resort Properties, Inc., filed for Chapter 11 bankruptcy protection (Bankr. D. Ariz. Case No. 10- 37134) on Nov. 17, 2010. Kasey C. Nye, Esq., and Elizabeth S. Fella, Esq., at Quarles & Brady LLP, in Tucson, Ariz., assist the Debtor in its restructuring effort. The Debtor estimated its assets at up to $50,000 and debts at $10 million to $50 million. Affiliates Transwest Hilton Head Property, L.L.C. (Bankr. D. Ariz. Case No. 10-37170), Transwest Tucson Property, L.L.C. (Bankr. D. Ariz. Case No. 10-37160), Transwest Tucson II, L.L.C. (Bankr. D. Ariz. Case No. 10-37151), and Transwest Hilton Head II, L.L.C. (Bankr. D. Ariz. Case No. 10-37145) filed separate Chapter 11 petitions on Nov. 17, 2010. BeachFleischman PC serves as tax preparer and advisor, accountant and auditor. Hundley & Company, LLC, serves as financial restructuring and interest rate experts, and Hospitality Real Estate Counselors as valuation consultant and expert. Transwest Hilton Head Property estimated assets at $10 million to $50 million and debts at $100 million to $500 million. Transwest Tucson Property estimated assets at $50 million to $100 million and debts at $100 million to $500 million. The U.S. Trustee appointed an Official Committee of Unsecured Creditors on Dec. 15, 2010. TRANT MANOR: Judge Mann Closes Chapter 11 Bankruptcy Case --------------------------------------------------------- The Hon. Margaret M. Mann of the U.S. Bankruptcy Court for the Southern District of California closed the Chapter 11 bankruptcy case of Trant Manor LLC. The Court reviewed the Debtor's motion to dismiss Chapter 11 case, the pleadings filed in support of the motion, and the conditional opposition filed by the U.S. Trustee, the Debtor having filed an operating report for the period of May 1, 2011 through May 26, 2011 and having paid the U.S. Trustee's fees for the second quarter of 2011 City National Bank will be and is hereby granted immediate relief from the automatic stay in any subsequent bankruptcy case filed by the Debtor. According to the Troubled Company Reporter on June 27, 2011, Judge Mann dismissed the Debtor's Chapter 11 case. The ruling came after the Debtor filed a motion seeking dismissal of its Chapter 11 case as provided for under its settlement agreement with City National Bank, its lender. The Chapter 11 case was filed on July 31, 2010, in order to prevent a foreclosure sale of the Debtor's sole asset, an inn in Coronado known as the 1906 Lodge. The foreclosure sale was scheduled by the Bank. The Debtor and certain individuals who guaranteed the loan from the Bank have entered into a settlement agreement with City National Bank. According to the Debtor, the Settlement Agreement contemplated the dismissal of the bankruptcy case and the possible refinancing of the Debtor's real property. The Debtor also said dismissal is in the best interests of creditors given that approximately 95% of the unsecured claims in its case are claims held by parties to the Settlement Agreement who are Guarantors or affiliates of Guarantors. In granting the dismissal request, Judge Mann also directed the Debtor to pay the U.S. Trustee's fees for the second quarter of 2011 and pay its counsel, Vanderhoff Law Group, $40,837 for fees, $1,856 for reimbursement of expenses, and up to $2,500 for services rendered for preparation of the fee application and order. The U.S. Trustee previously objected to the dismissal request to the extent the U.S. Trustee's administrative expense claims against the Debtor for the second quarter of 2011 are not paid. The U.S. Trustee also requested that the dismissal request be approved subject to the Debtor's filing all applicable monthly operating reports. To address the U.S. Trustee's objection, Judge Mann directed the Debtor to submit a final operating report for the period May 1 to 26, 2011. About Trant Manor, LLC Coronado, California-based Trant Manor, LLC, owns an inn in Coronado known as the 1906 Lodge. The Debtor filed for Chapter 11 bankruptcy protection (Bankr. S.D. Calif. Case No. 10-13663) on July 31, 2010. Alan Vanderhoff, Esq., at Vanderhoff Law, represents the Debtor as counsel. In its schedules, the Debtor disclosed $10,453,395 in assets and $9,488,580 in debts as of the Petition Date. TRISTAR FIRE: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Tristar Fire Protection, Inc. 47810 Galleon Dr. Plymouth, MI 48170-2472 Bankruptcy Case No.: 11-62283 Chapter 11 Petition Date: August 18, 2011 Court: United States Bankruptcy Court Eastern District of Michigan (Detroit) Judge: Phillip J. Shefferly Debtor's Counsel: Michael E. Baum, Esq. SCHAFER AND WEINER, PLLC 40950 Woodward Ave., Suite 100 Bloomfield Hills, MI 48304 Tel: (248) 540-3340 E-mail: mbaum@schaferandweiner.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mieb11-62283.pdf The petition was signed by Eric Wieber, chief financial officer. TROPICANA ENTERTAINMENT: Icahn Settles Casino Trademark Suit ------------------------------------------------------------ Carl Icahn and the Tropicana Las Vegas hotel and casino settled a trademark lawsuit over the right to the name Tropicana with each allowed to use it depending on the location. The OpCo Debtors and the OpCo-Related Entities -- the OpCo Parties -- on the one hand, and the Liquidating LandCo Debtors and the Tropicana Las Vegas Entities -- the LandCo Parties -- on the other hand, have reached an agreement on the ownership and use issues of the "TROPICANA" and "TROP" trademarks, among other things. The Settling Parties ask the U.S. Bankruptcy Court for the District of Delaware to approve the settlement agreement, dated Aug. 9, 2011, aimed at resolving numerous pending matters before the Bankruptcy Court and the U.S. District Court for the District of Nevada and provides for the mutual release of all claims by and between the Parties related to the trademarks. The OpCo Debtors refer to Tropicana Entertainment, LLC, and 26 of its affiliates, namely Adamar Garage Corporation; Argosy of Louisiana, Inc.; Atlantic-Deauville Inc.; Aztar Corporation; Aztar Development Corporation; Aztar Indiana Gaming Company, LLC; Aztar Indiana Gaming Corporation; Aztar Missouri Gaming Corporation; Aztar Riverboat Holding Company, LLC; Catfish Queen Partnership in Commendam; Centroplex Centre Convention Hotel, LLC; Columbia Properties Laughlin, LLC; Columbia Properties Tahoe, LLC; Columbia Properties Vicksburg, LLC; CP Baton Rouge Casino, LLC; CP Laughlin Realty, LLC; Jazz Enterprises, Inc.; JMBS Casino LLC; Ramada New Jersey Holdings Corporation; Ramada New Jersey, Inc.; St. Louis Riverboat Entertainment, Inc.; Tahoe Horizon, LLC; Tropicana Entertainment Holdings, LLC; Tropicana Entertainment Intermediate Holdings, LLC; Tropicana Express, Inc.; and Tropicana Finance Corp. The OpCo-Related Entities refer to Tropicana Entertainment Inc.; New Tropicana Holdings, Inc.; Tropicana Atlantic City Corp.; Tropicana AC Sub Corp.; New Tropicana OpCo, Inc.; Aztar Riverboat Holding Company, LLC; Aztar Indiana Gaming Company, LLC; Catfish Queen Partnership in Commendam; New Jazz Enterprises, LLC; Centroplex Centre Convention Hotel, LLC; New St. Louis Riverboat, LLC; CP St. Louis Casino, LLC; CP St. Louis Acquisition, LLC; Tahoe Horizon, LLC; Columbia Properties Tahoe, LLC; CP Laughlin Realty, LLC; Columbia Properties Laughlin, LLC; Columbia Properties Vicksburg, LLC; JMBS Casino, LLC; Greenville Riverboat, LLC; and Tropicana Express, LLC. The Liquidating LandCo Debtors, successors to the LandCo Debtors, comprise of Adamar of Nevada Corporation; Hotel Ramada of Nevada, LLC, f/k/a Hotel Ramada of Nevada Corporation, a/k/a Hotel Ramada of Nevada Inc.; Tropicana Development Company, LLC; Tropicana Enterprises; Tropicana Las Vegas Holdings, LLC; Tropicana Las Vegas Resort and Casino, LLC; and Tropicana Real Estate Company, LLC. The Tropicana Las Vegas Entities comprise of Tropicana Las Vegas, Inc., Tropicana Las Vegas Hotel and Casino, Inc., and Tropicana Las Vegas Intermediate Holdings Inc. The Parties have litigated over their rights to ownership or use of the TROPICANA or TROP trademarks for over two years. Certain hotels and casinos, including the Tropicana Las Vegas, the Tropicana Atlantic City, and the Tropicana Laughlin operate under the trademarks. The OpCo Parties previously proposed that reorganized LandCo license the name and marks for $10,000,000 over five years with termination fees of up to $3,000,000. The LandCo Parties opposed the proposal, asserting that the predecessors of the LandCo Debtors were the owners and first users of the "Tropicana" marks and have used them continuously for more than 50 years. The LandCo Parties also pointed out that neither the LandCo Debtors nor their predecessors have ever executed any license or paid any royalties with respect to the marks. The OpCo Parties, however, maintained that the LandCo Parties do not own and have no right to continue to use the marks. While the Parties remain confident in their claims of exclusive ownership of and right to use the trademarks, they recognize the inherent risk, cost, and delay of continuing to litigate over those rights, counsel to the OpCo Parties, Lee E. Kaufman, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, relates. "The Settlement Agreement removes that risk, cost, and delay, and among other things, provides the Parties with exclusive ownership of and right to use the trademarks in the geographic regions where they currently operate," Mr. Kaufman tells the Bankruptcy Court. Related Trademark Disputes The Tropicana Debtors fall into two groups: (1) The LandCo Debtors, which comprise of entities previously involved in the ownership and operation of the Tropicana Hotel and Casino in Las Vegas, Nevada, including Hotel Ramada of Nevada; and (2) the OpCo Debtors, which comprise entities previously involved in the operation of the Tropicana Casino & Resort Atlantic City in New Jersey, the Tropicana Express in Laughlin, Nevada, and other casinos. Tropicana Las Vegas was formerly part of Tropicana Entertainment LLC, an OpCo Debtor, which was the former parent company of certain of the other Debtors. Carl Icahn and his designated entities have acquired the Tropicana parent. The Icahn Group took over the Tropicana Atlantic City Casino on Mar. 8, 2010, the same date Tropicana Entertainment LLC and certain of its debtor affiliates emerged from bankruptcy. The Icahn-owned Tropicana entity is now called "Tropicana Entertainment Inc." With the Tropicana parent being acquired by the Icahn Group, Tropicana Las Vegas was spun off to certain investors, which include Onex Corporation and its affiliates. Onex Corporation, together with Alex Yemenidjian, acquired a majority equity stake in the Tropicana Las Vegas Hotel and Casino following the property's emergence from bankruptcy protection on Jul. 1, 2009. Under the terms of the LandCo plan of reorganization, all secured debt holders, of which Onex was the largest, received 100% of the equity in the resort property. Adamar of New Jersey Inc. and Manchester Mall Inc., sought Chapter 11 protection in New Jersey, and have since merged into Adamar of NJ In Liquidation, LLC, in accordance with an amended and restated purchase agreement. The Agreement essentially governs the sale and transfer of the operations of the Tropicana Casino and Resort Atlantic City, including substantially all of the New Jersey Debtors' assets, to Tropicana Entertainment Inc., Tropicana Atlantic City Corp., and Tropicana AC Sub Corp. The bankruptcy cases of the New Jersey Debtors have recently been dismissed. Disputes and proceedings related to the TROPICANA trademark issue, of which the Tropicana Parties are involved in, include a Nevada lawsuit, a dispute over intellectual property, and an adversary complaint involving the Icahn Group. (1) Nevada Action On Jul. 20, 2009, Tropicana Las Vegas, Inc. and Hotel Ramada of Nevada, LLC, f/k/a Hotel Ramada of Nevada Corporation a/k/a Hotel Ramada of Nevada Inc., filed a complaint against OpCo Debtors Tropicana Entertainment, LLC, and Aztar Corporation seeking a declaratory judgment that the LandCo Parties had the right to operate the Tropicana Las Vegas under the TROPICANA trademark without any interference by or payment to the OpCo Parties. The Nevada Action is captioned "Tropicana Las Vegas, Inc. v. Aztar Corporation," Case No. A595469. On Aug. 10, 2009, Tropicana Entertainment and Aztar Corp. filed an answer and counterclaim asserting that the LandCo Parties' use of the TROPICANA trademark infringes on their exclusive rights in that trademark. Cross-motions for summary judgment were subsequently filed in the Nevada Action, with each side arguing that they held exclusive ownership and use rights in the TROPICANA trademark. On Jun. 10, 2010, the Nevada Court entered its order denying the parties' cross-motions for summary judgment, but entering findings of fact and conclusions of law. No trial date has been set in the Nevada Action. (2) IP Motion On May 7, 2010, certain of the OpCo-Related Entities filed an IP Motion seeking (i) the rejection of all executory contracts and unexpired leases involving Intellectual Property Rights granted by the OpCo Debtors in favor of the LandCo Debtors retroactive as of the July 1, 2009 LandCo Plan Effective Date, and (ii) the assumption of all executory contracts and unexpired leases involving Intellectual Property Rights granted by the LandCo Debtors in favor of the OpCo Debtors that are determined to exist. Tropicana Las Vegas, Inc. and the Liquidating LandCo Debtors objected to the IP Motion. The IP Motion is being carried off-calendar and no hearing date has been set. (3) Icahn Adversary Proceeding The Icahn Adversary Complaint was initiated on Aug. 10, 2010, by Icahn Agency Services LLC, as the administrative and collateral agent for the lenders under the Dec. 29, 2009 OpCo Exit Facility; Icahn Partners LP; Icahn Partners Master Fund LP; Icahn Partners Master Fund II LP; Icahn Partners Master Fund III LP; Tropicana Entertainment Inc.; and New Tropicana Holdings, Inc. against Tropicana Las Vegas, Inc. and Hotel Ramada of Nevada, LLC, to enforce certain prior orders of the Bankruptcy Court and to enjoin the Defendants' alleged wrongful efforts to assert that they are the owners of the "TROPICANA" and "TROP" trademarks and service marks. The Icahn Adversary Proceeding is captioned "Icahn Agency Services LLC v. Tropicana Las Vegas, Inc. (In re Tropicana Entertainment, LLC et al.)," Adv. Proc. No. 10-52489 (Bankr. D. Del.) (KJC). On Sept. 8, 2010, the Defendants filed a motion to dismiss or abstain from adjudication of the Adversary Proceeding, which the Icahn Plaintiffs opposed. Oral argument on the Motion to Dismiss has been consensually adjourned while the Parties negotiated the Settlement Agreement, and is currently scheduled for Sept. 27, 2011. Settlement Agreement The Settling Parties have engaged in lengthy negotiations regarding the ownership and use of the TROPICANA and TROP trademarks, and have ultimately struck a deal to resolve their disputes. The Settlement Agreement resolves globally the Parties' rights of ownership and use in the trademarks as well as the Nevada Action, the IP Motion, and the Icahn Adversary Proceeding. The salient terms of the Settlement Agreement are: (a) The Parties agree to concurrent use and registration of certain Marks that are or include the term "TROPICANA" or variants without any payment from one to another, and in perpetuity. (b) The LandCo Parties own and have the exclusive right to use the "TLV" Marks in their territory (i) in connection with any present or future goods, services and enterprise in the nature of entertainment and hospitality services or within the zone of natural expansion of these services, and (ii) for internet uses without geographical limitation. The LandCo Parties will also have the right to advertise their Services identified by the "TLV" Marks worldwide, provided that those advertisements make explicit reference to the location of the Las Vegas Property. (c) The LandCo Parties will not have any right to use the mark "TROPICANA," "TROP," or any variation other than as part of the composite mark "TROPICANA LAS VEGAS." However, the LandCo Parties may use the "TROP" mark without reference to LAS VEGAS for purposes of on-property signage and marketing property-specific campaigns, programs, and events, and selling merchandise on property, provided that those uses are in conjunction with materials making explicit reference to the Las Vegas Property and its location, are not confusingly similar to any pre-existing or then current use by the OpCo Parties, and are otherwise consistent with the terms of the Agreement. (d) The OpCo Parties own and have the exclusive right to use the marks "TROPICANA" and "TROP," provided that each is accompanied by a preexisting identifier or by an accurate geographic identifier other than LAS VEGAS or the name of any city within the TLV Territory, and other present or future TROPICANA-formative or TROP-formative marks that combine TROPICANA or TROP with an additional preexisting identifier or accurate geographic identifier other than LAS VEGAS or any city within the TLV Territory in connection with Services worldwide, excluding only the TLV Territory. (e) The OpCo Parties will be allowed to advertise the Services identified by "TROPICANA," "TROP," TROPICANA-formative or TROP-formative marks within the TLV Territory, provided that those advertisements make explicit reference to the locations of the properties identified by these Marks. The OpCo Parties may also use the "TROP" Mark without reference to any preexisting identifier or accurate geographic identifier for purposes of on-property signage and marketing property specific campaigns, programs, and events, and selling merchandise on property, provided that these uses are in conjunction with materials making explicit reference to the locations of the properties to which the marketing campaign applies, are not confusingly similar to any preexisting use by the LandCo Parties, and are otherwise consistent with the terms of the Agreement. The OpCo Parties will also be permitted to continue to use its Marks in connection with its corporate office located within the TLV Territory and to maintain business and marketing operations out of its Las Vegas, Nevada, office in the ordinary course. (f) Each Party will use its Marks on its Web sites, gaming sites, social media, or other internet presence on a worldwide basis in a manner consistent with the Agreement. (g) Each Party agrees not to adopt any stylization that would be confusingly similar to the other Party's current stylization or other stylization the other Party may adopt in the future. In the event of any confusion between the parties, their Marks, and their businesses, the Parties will cooperate with each other in good faith to rectify the situation. (h) Immediately upon the effective date, the Parties will jointly file (i) a stipulation of dismissal with prejudice of the Nevada Action; (ii) a stipulation and order to vacate the Nevada Court's Jun. 10, 2010 order denying the Parties' cross-motions for summary judgment and the Nevada Court's Aug. 12, 2010 order regarding the motion of Tropicana Entertainment, LLC and Aztar Corporation to reconsider certain of the Nevada Court's findings and conclusions set forth in its SJ Order; and (iii) a stipulation of dismissal with prejudice of the Icahn Adversary Proceeding, which will be joined by all plaintiffs in the action. The OpCo Parties will also file a notice of withdrawal with prejudice of the IP Motion. The LandCo Parties will also file a voluntary dismissal with prejudice of Opposition No. 91193816 currently pending before the Trademark Trial and Appeal Board, and the OpCo Parties will withdraw Intent to Use Applications Nos. 77/759,102 and 77/759,101 for the Mark THE TROP LAS VEGAS EST. 1957 and design, filed on Jun. 13, 2009, with USPTO. Tropicana Atlantic City Corp. will file a notice of withdrawal with prejudice of proofs of claim against Tropicana Enterprises, Tropicana Development Company, LLC, Adamar of Nevada Corporation, Tropicana Real Estate Company LLC, Hotel Ramada of Nevada Corporation, Tropicana Las Vegas Resort and Casino, LLC, and Tropicana Las Vegas Holdings, LLC. (i) The Parties mutually release each other from any and all claims, causes of action, suits, debts, obligations, liabilities, demands, losses, costs and expenses of any and every kind in connection with the trademarks, trade names or disputes relating to web domain names that arose or could have been raised before Aug. 9, 2011, the date of the Agreement. A full-text copy of the Settlement Agreement is available at no charge at: http://bankrupt.com/misc/Tropi_TrademarkSettlement080911.pdf A hearing for the approval of the Settlement Agreement has been set for Sept. 13, 2011. Objections are due no later than Aug. 29, 2011, at 4:00 p.m. Adversary Proceeding Dismissed OpCo Debtors-related parties and LandCo Debtors-related parties, following good faith negotiations concerning the Icahn Adversary Proceeding, have entered into a settlement agreement dismissing the adversary complaint, among other things. A full-text copy of the Settlement Agreement is available at no charge at: http://bankrupt.com/misc/Tropi_TrademarkSettlement080911.pdf The Settlement Motion is scheduled to be heard by the U.S. Bankruptcy Court for the District of Delaware on Sept. 13, 2011, at 3:30 p.m. After the entry of an order approving the Settlement Agreement, the Parties will file a stipulation dismissing the Adversary Proceeding. The Icahn Plaintiffs are successors-in-interest to the OpCo Debtors or their creditors, who emerged from bankruptcy on March 8, 2010. About Tropicana Entertainment Tropicana Entertainment Inc. is a publicly reporting company that, along with its affiliates, owns or operates nine casinos and resorts in Indiana, Louisiana, Mississippi, Nevada and New Jersey. The Company owns approximately 6,000 rooms, 9,000 slot positions and 250 table games. In addition, the Company owns a development property in Aruba. The company is based in Las Vegas, Nevada. Tropicana Entertainment LLC and certain affiliates filed for Chapter 11 protection on May 5, 2008 (Bankr. D. Del. Case No. 08- 10856). Kirkland & Ellis LLP and Mark D. Collins, Esq., at Richards Layton & Finger, represent the Debtors in their restructuring efforts. Their financial advisor is Lazard Ltd. Their notice, claims, and balloting agent is Kurtzman Carson Consultants LLC. Epiq Bankruptcy Solutions LLC is the Debtors' Web site administration agent. AlixPartners LLP is the Debtors' restructuring advisor. Stroock & Stroock & Lavan LLP and Morris Nichols Arsht & Tunnell LLP represent the Official Committee of Unsecured Creditors in this case. Capstone Advisory Group LLC is financial advisor to the Creditors' Committee. The OpCo Debtors, a group of Tropicana entities owning casinos and resorts in Atlantic City, New Jersey and Evansville, Indiana obtained confirmation from the Bankruptcy Court of a reorganization plan. On April 29, 2009, non-debtor units of the OpCo Debtors, designated as the New Jersey Debtors -- Adamar of New Jersey, Inc., and its affiliate, Manchester Mall, Inc. -- filed for Chapter 11 (Bankr. D. N.J. Lead Case No. 09- 20711) to effectuate a sale of the Atlantic City Resort and Casino to a group of Investors-led by Carl Icahn. Judge Judith H. Wizmur presides over the cases. Manchester Mall is a wholly owned subsidiary of Adamar that owns and operates certain real property utilized in the New Jersey Debtors' business operations. Effective March 8, Tropicana Entertainment successfully emerged from the Chapter 11 reorganization process as an Carl Icahn-owned entity. A group of Tropicana entities, known as the LandCo Debtors, which own Tropicana casino property in Las Vegas, have obtained approval of a separate Chapter 11 plan. Ilana Volkov, Esq., and Michael D. Sirota, Esq., at Cole, Schotz, Meisel, Forman & Leonard, in Hackensack, New Jersey, represented the New Jersey Debtors. Kurtzman Carson Consultants LLC acts as their claims and notice agent. Adamar disclosed $500 million to $1 billion both in total assets and debts in its petition. Manchester Mall disclosed $1 million to $10 million in total assets, and less than $50,000 in total debts in its petition. Debtors Adamar of New Jersey Inc. and Manchester Mall Inc. have merged into Adamar of NJ In Liquidation, LLC. The merger and name change is in accordance with an Amended and Restated Purchase Agreement, which governs the sale and transfer of the operations of the Tropicana Casino and Resort - Atlantic City, including substantially all of the New Jersey Debtors' assets, to Tropicana Entertainment Inc., Tropicana Atlantic City Corp., and Tropicana AC Sub Corp., free and clear of any and all liens, claims and encumbrances. Bankruptcy Creditors' Service, Inc., publishes Tropicana Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Tropicana Entertainment Inc. and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TROPICANA ENTERTAINMENT: LandCo Parties Settle With Lazard Freres ----------------------------------------------------------------- Tropicana entities known as the Liquidating LandCo Debtors and Tropicana Las Vegas, Inc., ask the U.S. Bankruptcy Court for the District of Delaware to approve the settlement of their objection to the final fee applications of Lazard Freres & Co. LLC. On Aug. 14, 2009, Lazard Freres filed to the Court its final fee application as investment banker and financial advisor to the LandCo Debtors for the period from May 5, 2008 through Apr. 22, 2010. On Apr. 22, 2010, Lazard Freres filed its final fee application as investment banker and financial advisor to the OpCo Debtors for the period from May 5, 2008 through Apr. 30, 2009. By its Final Fee Applications, Lazard Freres is seeking final allowance of all fees and expenses for services rendered to the OpCo and LandCo Debtors, including a $11,550,000 "completion fee." Lazard Freres asserted that the terms of the completion fee was provided in the Court order approving its retention in the Debtors' Chapter 11 cases. Lazard Freres specifically proposed an allocation of 16.2% of its total allowed fees and expenses to the LandCo estates. The Steering Committee of OpCo Lenders has objected to Lazard Freres' Final Fee Applications. The Steering Committee disputed Lazard Freres' entitlement to a completion fee and alleged that 50% of the firm's allowed fees and expenses should be allocated to the LandCo estates. In response, the firm asserted that it is entitled to recover the entire completion fee and that only 16.2% of its allowed fees and expenses should be allocated to the LandCo estates. The LandCo Parties also objected to Lazard Freres' Final Fee Applications, specifically to the allowance of $159,221 of the firm's expenses that consisted of "legal fees." The LandCo Parties contended that Lazard Freres provided no explanation for why it incurred any legal fees in connection with its engagement. An evidentiary hearing regarding the Allocation Dispute was held before the Court on May 11, 2011, wherein the Court requested post-hearing submissions from parties to the Allocation Dispute. The Court has not yet ruled on the Allocation Dispute. On Jun. 22, 2011, Lazard Freres filed a summary judgment motion, which the Court has denied without prejudice, to resolve the Fee Objections because it "did not believe that any genuine issues of fact exist." In addition to seeking entry of an order denying the Fee Objections, the summary judgment motion also requested reimbursement from the Steering Committee and the LandCo Parties of their allocable share of an aggregate amount of $444,164, as of Jun. 1, 2011, in legal fees incurred by the firm in defending against the Fee Objections. The LandCo Parties disputed Lazard Freres' entitlement to the legal fees. The LandCo Parties and Lazard Freres have since engaged in good faith negotiations for the consensual resolution of the Final Fee Applications. Lazard Freres has provided information supporting the "legal fees" that were subject to the LandCo Fee Objection and has responded to subsequent inquiries of the LandCo parties regarding the information. The negotiations ultimately ended in the parties reaching a settlement agreement to resolve their dispute related to the Final Fee Applications. The salient terms of the settlement are: (a) The LandCo Parties' objection to the Lazard Final Fee Applications will be withdrawn with prejudice; and (b) Lazard Freres will not seek and is prohibited from seeking reimbursement from the LandCo Parties for any fees and expenses incurred by the firm in assessing, analyzing, defending against, and resolving the LandCo Fee Objection. Responses or objections to the parties' settlement are due no later Aug. 29, 2011, at 4:00 p.m. Timely filed responses or objections will be considered at a hearing set for Sept. 27, 2011. About Tropicana Entertainment Tropicana Entertainment Inc. is a publicly reporting company that, along with its affiliates, owns or operates nine casinos and resorts in Indiana, Louisiana, Mississippi, Nevada and New Jersey. The Company owns approximately 6,000 rooms, 9,000 slot positions and 250 table games. In addition, the Company owns a development property in Aruba. The company is based in Las Vegas, Nevada. Tropicana Entertainment LLC and certain affiliates filed for Chapter 11 protection on May 5, 2008 (Bankr. D. Del. Case No. 08- 10856). Kirkland & Ellis LLP and Mark D. Collins, Esq., at Richards Layton & Finger, represent the Debtors in their restructuring efforts. Their financial advisor is Lazard Ltd. Their notice, claims, and balloting agent is Kurtzman Carson Consultants LLC. Epiq Bankruptcy Solutions LLC is the Debtors' Web site administration agent. AlixPartners LLP is the Debtors' restructuring advisor. Stroock & Stroock & Lavan LLP and Morris Nichols Arsht & Tunnell LLP represent the Official Committee of Unsecured Creditors in this case. Capstone Advisory Group LLC is financial advisor to the Creditors' Committee. The OpCo Debtors, a group of Tropicana entities owning casinos and resorts in Atlantic City, New Jersey and Evansville, Indiana obtained confirmation from the Bankruptcy Court of a reorganization plan. On April 29, 2009, non-debtor units of the OpCo Debtors, designated as the New Jersey Debtors -- Adamar of New Jersey, Inc., and its affiliate, Manchester Mall, Inc. -- filed for Chapter 11 (Bankr. D. N.J. Lead Case No. 09- 20711) to effectuate a sale of the Atlantic City Resort and Casino to a group of Investors-led by Carl Icahn. Judge Judith H. Wizmur presides over the cases. Manchester Mall is a wholly owned subsidiary of Adamar that owns and operates certain real property utilized in the New Jersey Debtors' business operations. Effective March 8, Tropicana Entertainment successfully emerged from the Chapter 11 reorganization process as an Carl Icahn-owned entity. A group of Tropicana entities, known as the LandCo Debtors, which own Tropicana casino property in Las Vegas, have obtained approval of a separate Chapter 11 plan. Ilana Volkov, Esq., and Michael D. Sirota, Esq., at Cole, Schotz, Meisel, Forman & Leonard, in Hackensack, New Jersey, represented the New Jersey Debtors. Kurtzman Carson Consultants LLC acts as their claims and notice agent. Adamar disclosed $500 million to $1 billion both in total assets and debts in its petition. Manchester Mall disclosed $1 million to $10 million in total assets, and less than $50,000 in total debts in its petition. Debtors Adamar of New Jersey Inc. and Manchester Mall Inc. have merged into Adamar of NJ In Liquidation, LLC. The merger and name change is in accordance with an Amended and Restated Purchase Agreement, which governs the sale and transfer of the operations of the Tropicana Casino and Resort - Atlantic City, including substantially all of the New Jersey Debtors' assets, to Tropicana Entertainment Inc., Tropicana Atlantic City Corp., and Tropicana AC Sub Corp., free and clear of any and all liens, claims and encumbrances. Bankruptcy Creditors' Service, Inc., publishes Tropicana Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Tropicana Entertainment Inc. and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) UINTAH BASIN: Case Summary & Largest Unsecured Creditor ------------------------------------------------------- Debtor: Uintah Basin Resources, LLC Attn: Soung Joon Kim 1245 East Brickyard Road, Suite 110 Salt Lake City, UT 84106 Bankruptcy Case No.: 11-32261 Chapter 11 Petition Date: August 22, 2011 Court: U.S. Bankruptcy Court District of Utah (Salt Lake City) Judge: Joel T. Marker Debtor's Counsel: Steven J. McCardell, Esq. DURHAM JONES & PINEGAR 111 East Broadway, Suite 900 P.O. Box 4050 Salt Lake City, UT 84110-4050 Tel: (801) 415-3000 Fax: (801) 415-3500 E-mail: smccardell@djplaw.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Soung Joon Kim, chief operating officer. The list of unsecured creditors filed together with its petition contains only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Lear & Lear Law Offices LLP Services $2,166 808 East South Temple Salt Lake City, UT 84102 UNILAVA CORPORATION: Incurs $417,900 Net Loss in Second Quarter --------------------------------------------------------------- Unilava Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $417,920 on $887,256 of revenue for the three months ended June 30, 2011, compared with a net loss of $277,630 on $1.44 million of revenue for the same period during the prior year. The Company also reported a net loss of $843,674 on $1.82 million of revenue for the six months ended June 30, 2011, compared with a net loss of $500,709 on $2.86 million of revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $4.16 million in total assets, $5.88 million in total liabilities and a $1.72 million total stockholders' deficit. The Company reported a net loss of $1.00 million on $5.31 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.81 million on $7.35 million of revenue during the prior year. As reported by the TCR on April 14, 2011, De Joya Griffith & Company, LLC, in Henderson, Nevada, said that the Company has suffered losses from operations, which raises substantial doubt about its ability to continue as a going concern. The Company has recently sustained operating losses and has an accumulated deficit of $2.38 million at Dec. 31, 2010. In addition, the Company has negative working capital of $4.59 million at Dec. 31, 2010. A full-text copy of the Form 10-Q is available for free at: http://is.gd/paCDAj About Unilava Corporation Unilava Corporation (OTC BB: UNLA)-- http://www.unilava.com/-- is a diversified communications holding company incorporated under the laws of the State of Wyoming in 2009. Unilava Corporation and its subsidiary brands provide a variety of communications services, products, and equipment that address the needs of corporations, small businesses and consumers. The Company is licensed to provide long distance services in 41 states throughout the U.S. and local phone services across 11 states. Through its carrier-grade microwave wireless broadband infrastructure and broadband Internet access partners, the Company also offers mobile and high-definition IP-hosted voice services to residential customers and corporate clients. Additionally, Unilava Corp. delivers a comprehensive and integrated suite of fee-based online and mobile advertising and web services to a broad array of business enterprises. Headquartered in San Francisco, the Company has regional offices in Chicago, Seoul, Hong Kong, and Beijing. UNITED CONTINENTAL: Court Reopens Two UAL Chapter 11 Cases ---------------------------------------------------------- Judge Eugene R. Wedoff of the U.S. Bankruptcy Court for the Northern District of Illinois reopened, effective as of August 17, 2011, the Chapter 11 cases of UAL Corporation and UAL Loyalty Services, Inc. for the sole purpose of enforcing the Reorganized Debtors' confirmed Plan of Reorganization, its related confirmation order, and the discharge injunction provided for by the Chapter 11 Plan, the confirmation order and Section 1141 of the Bankruptcy Code. The Bankruptcy Court retains jurisdiction with respect to all matters arising from or related to the implementation of Judge Wedoff's order. Prior to the entry of Judge Wedoff's order, the Reorganized Debtors responded to the objection filed by United Pilots for Justice, Inc. and more than 700 individual plaintiffs in a lawsuit before the U.S. District Court for the District of Columbia. Counsel to the Reorganized Debtors, Michael B. Slade, Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, asserted that the Bankruptcy Code permanently enjoins creditors from collecting any debt discharged pursuant to a Chapter 11 plan. The Reorganized Debtors' Plan and its related confirmation order explicitly contained that injunction, he stressed. Contrary to the Plaintiffs' arguments, it is well-settled that the Bankruptcy Court is the most appropriate court to consider and apply its orders, including the Confirmation Order, he argued. It would defy logic to hold that a court that issued a judgment cannot later determine whether or not it barred a subsequent lawsuit, he pointed out. Moreover, the dispute does not involve pension plan termination -- the Pilot Plan was terminated by the PBGC effective December 2004, Mr. Slade said. He contended that the Plaintiffs' complaint is a collateral attack on several aspects of the Reorganized Debtors' bankruptcy cases and defies the Bankruptcy Court-approved PBGC Settlement, which released the Reorganized Debtors and informed Plaintiffs that they wanted to challenge the agreement they had rights under the Employee Retirement Income Security Act to take action against the PBGC. Against this backdrop, it is well established law that the Bankruptcy Court has core jurisdiction to rule on the primary issues in this matter: whether the Complaint is a collateral challenge to the Reorganization Plan or the PBGC Settlement Order, or otherwise violates the discharge injunction, he maintained. About United Continental United Continental Holdings, Inc. (NYSE: UAL) is the holding company for both United Airlines and Continental Airlines. Together with United Express, Continental Express and Continental Connection, these airlines operate a total of approximately 5,800 flights a day to 371 airports throughout the Americas, Europe and Asia from their hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York, San Francisco, Tokyo and Washington, D.C. United and Continental are members of Star Alliance, which offers more than 21,200 daily flights to 1,172 airports in 181 countries worldwide through its 28 member airlines. United's and Continental's more than 80,000 employees reside in every U.S. state and in many countries around the world. For more information about United Continental Holdings, Inc., go to UnitedContinentalHoldings.com. For more information about the airlines, see http://www.united.com/and http://www.continental.com/,and follow each company on Twitter and Facebook. United Continental carries 'B2' corporate family and probability of default ratings, with stable outlook, from Moody's, 'B' issuer credit ratings, with stable outlook, from Standard & Poor's, and 'B-' issuer default rating from Fitch. UAL Corp filed for Chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-8191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors. Judge Eugene R. Wedoff confirmed a reorganization plan for United on Jan. 20, 2006. The Company emerged from bankruptcy on Feb. 1, 2006. UNITED CONTINENTAL: To Pay $3-Mil. to Ex-CIO Halbert ---------------------------------------------------- United Continental Holdings, Inc. will pay R. Keith Halbert $3,000,000 in connection with his resignation as United Air Lines, Inc.'s chief information officer, according to a filing with the U.S. Securities and Exchange Commission on July 26, 2011. Mr. Halbert's resignation became effective as of April 30, 2011. Based on a separation agreement between Mr. Halbert and United Continental, the holding company will pay Mr. Halbert $3,000,000 in this schedule: (a) $2,034,531 will be paid in a cash lump sum on the effective date of the agreement; and (b) a total of $965,469 will be paid in 18 installments (the first 17 of which will be in the amount of $53,906, and the last of which will be in the amount of $49,062) on the Company's normal payroll cycle, as in effect on the date Mr. Halbert executes the Agreement, with the first installment paid on the first payroll date occurring on or after March 30, 2012. Mr. Halbert was replaced by Robert Edwards, who served as vice president of systems of operations at Continental, Crain's Chicago Business disclosed in another report. According to Crain's Chicago Business, Mr. Edwards will receive a $425,000 salary, and 13,080 shares of restricted stock worth about $250,000 that vest over three years, the report added. About United Continental United Continental Holdings, Inc. (NYSE: UAL) is the holding company for both United Airlines and Continental Airlines. Together with United Express, Continental Express and Continental Connection, these airlines operate a total of approximately 5,800 flights a day to 371 airports throughout the Americas, Europe and Asia from their hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York, San Francisco, Tokyo and Washington, D.C. United and Continental are members of Star Alliance, which offers more than 21,200 daily flights to 1,172 airports in 181 countries worldwide through its 28 member airlines. United's and Continental's more than 80,000 employees reside in every U.S. state and in many countries around the world. For more information about United Continental Holdings, Inc., go to UnitedContinentalHoldings.com. For more information about the airlines, see http://www.united.com/and http://www.continental.com/,and follow each company on Twitter and Facebook. United Continental carries 'B2' corporate family and probability of default ratings, with stable outlook, from Moody's, 'B' issuer credit ratings, with stable outlook, from Standard & Poor's, and 'B-' issuer default rating from Fitch. UAL Corp filed for Chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-8191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors. Judge Eugene R. Wedoff confirmed a reorganization plan for United on Jan. 20, 2006. The Company emerged from bankruptcy on Feb. 1, 2006. UNITED CONTINENTAL: Sick Calls Cancelled 24 Continental Flights --------------------------------------------------------------- Pilot shortage caused by sick calls led United Continental Holdings, Inc. to cancel 24 Continental flights in late July, Susan Carey of The Wall Street Journal reported. A spokesperson for United Continental disclosed that the holding company cancelled scrubbed flights for July 27, 2011, after it received sick calls from pilots at its subsidiary Continental Airlines, Inc., Ms. Carey related. The report stated that Continental and United Air Lines, Inc. pilots continue to operate separately under the terms of their own pre-merger union contracts. Once the merged airline achieves a common labor contract with the pilot groups and obtain a single operating certificate from federal regulators, United Continental will be able to interchange the planes and pilots, the report noted. The United Continental spokesperson stated that there are more Continental pilots available to fly this summer than last summer as all Continental pilots who were furloughed and wanted to return to work have done so, the report relayed. Ms. Carey observed that United Continental has been embroiled in "increasingly contract negotiations" with the two pilot groups at United and Continental. Indeed, the Air Line Pilot Association, which represents pilots at United and continental, has complained about the slow pace of the negotiations on a new joint contract that will succeed the separate bargaining agreements, which have been open for renewal for years, Ms. Carey pointed out. United Continental Chief Executive Officer Jeffery Smisek acknowledged at the recent second quarter conference call that he no longer thinks the company will reach joint contracts with all of its unions by the end of the year, which he said was his "admittedly aggressive goal," The Journal relayed. The pilot union leaders were not too happy with the CEO's remarks. Continental Master Executive Council Jay Pierce asserted that the pilots are doing their part at the bargaining table and they "remain fully committed to reaching agreement on a new contract that meets the needs of our pilots." United Master Executive Council Chairman Captain Wendy Morse emphasized that if senior management wants to build a corporate culture on which to build the world's leading airline, "then they have to be serious about reaching contracts with their employees as they were securing contracts for themselves more than 12 months ago." The Journal related that under federal labor law, airline employees cannot strike when their contracts open for renewal but must continue under the old terms until a new deal is reached. The Journal cited that work-to-rule campaigns or sick-ins are illegal. United won a federal injunction against ALPA and some individual pilots, alleging they conducted an unlawful campaign of sick-leave abuse, pilot intimidation and other actions that resulted in hundreds of flight cancellations, the report added. About United Continental United Continental Holdings, Inc. (NYSE: UAL) is the holding company for both United Airlines and Continental Airlines. Together with United Express, Continental Express and Continental Connection, these airlines operate a total of approximately 5,800 flights a day to 371 airports throughout the Americas, Europe and Asia from their hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York, San Francisco, Tokyo and Washington, D.C. United and Continental are members of Star Alliance, which offers more than 21,200 daily flights to 1,172 airports in 181 countries worldwide through its 28 member airlines. United's and Continental's more than 80,000 employees reside in every U.S. state and in many countries around the world. For more information about United Continental Holdings, Inc., go to UnitedContinentalHoldings.com. For more information about the airlines, see http://www.united.com/and http://www.continental.com/,and follow each company on Twitter and Facebook. United Continental carries 'B2' corporate family and probability of default ratings, with stable outlook, from Moody's, 'B' issuer credit ratings, with stable outlook, from Standard & Poor's, and 'B-' issuer default rating from Fitch. UAL Corp filed for Chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-8191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors. Judge Eugene R. Wedoff confirmed a reorganization plan for United on Jan. 20, 2006. The Company emerged from bankruptcy on Feb. 1, 2006. UNITED STATES OIL: Incurs $665,000 Net Loss in Second Quarter ------------------------------------------------------------- United States Oil and Gas Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $665,311 on $8.67 million of net sales for the three months ended June 30, 2011, compared with net income of $16,418 on $5.97 million of net sales for the same period a year ago. The Company also reported a net loss of $1.20 million on $15.74 million of net sales for the six months ended June 30, 2011, compared with a net loss of $622,458 on $11.36 million of net sales for the same period during the prior year. The Company's balance sheet at June 30, 2011, showed $7.44 million in total assets, $7.34 million in total liabilities and $103,875 total stockholders' equity. A full-text copy of the Form 10-Q is available for free at: http://is.gd/ny4RDo About United States Oil United States Oil and Gas Corp. OTC QB: USOG) -- http://www.usaoilandgas.com/-- is an oil and gas products, services and technology company headquartered in Austin, Texas. Through its subsidiaries, the Company markets and distributes refined oil and gas (diesel, gasoline, propane, high octane racing fuels and lubricants) to wholesale and retail customers in the United States. As reported in the TCR on April 27, 2011, M&K CPAS, PLLC, in Houston, Texas, expressed substantial doubt about United States Oil and Gas Corp.'s ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has accumulated losses resulting in an accumulated deficit as of Dec. 31, 2010. V-R PROPERTY: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: V-R Property Management, a Nevada Corporation 2152 N. Carson St. Carson City, NV 89706 Bankruptcy Case No.: 11-52653 Chapter 11 Petition Date: August 19, 2011 Court: United States Bankruptcy Court District of Nevada (Reno) Judge: Bruce T. Beesley Debtor's Counsel: Paul W. Freitag, Esq. THE LAW OFFICES OF PAUL FREITAG 885 Tyler Way Reno, NV 89431 Tel: (775) 331-5666 E-mail: freitaglaw@yahoo.com Scheduled Assets: $1,528,024 Scheduled Debts: $3,241,776 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nvb11-52653.pdf The petition was signed by Mohammad S. Ahmad, president. WASHINGTON MUTUAL: Court Signals Plan Ruling Is Near ---------------------------------------------------- Peg Brickley of Dow Jones Daily Bankruptcy Review reports that Judge Mary Walrath on Wednesday indicated that creditors may not have to wait long to find out whether she will confirm Washington Mutual Inc.'s $7 billion Chapter 11 plan. "I'm a long way towards issuing a decision," Judge Walrath said at the start of a session in which she will hear a final debate over the plan. "Creditors of the debtors have waited nearly three years for any recovery," Fred Hodara, Esq., at Akin Gump Strauss Hauer and Feld, attorney for the official committee of unsecured creditors, said at a hearing in the U.S. Bankruptcy Court in Wilmington, Delaware, according to DBR. About Washington Mutual Based in Seattle, Washington, Washington Mutual Inc. -- http://www.wamu.com/-- was the 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. WASHINGTON MUTUAL: Judge Keeps FDIC in Deutsche Bank's $10BB Suit ----------------------------------------------------------------- Dan Rivoli at Bankruptcy Law360 reports that a federal judge in Washington last week refused to let the Federal Insurance Deposit Corp. exit a Deutsche Bank AG unit's $10 billion suit over bad mortgage loans that Washington Mutual Bank NA issued before federal regulators seized the troubled bank. According to Law360, Deutsche Bank National Trust Co., serving as a trustee for securitized groups of home loans, in 2009 sued the FDIC, WaMu's receiver, and J.P. Morgan Chase & Co., which acquired the bank. 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. WAXESS HOLDINGS: Incurs $2 Million Second Quarter Net Loss ---------------------------------------------------------- Airtouch Communications, Inc., formerly known as Waxess Holdings, filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss attributable to the Company of $2.01 million on $250,499 of net revenue for the three months ended June 30, 2011, compared with a net loss attributable to the Company of $1.34 million on $3,934 of net revenue for the same period during the prior year. The Company also reported a net loss attributable to the Company of $4.32 million on $477,217 of net revenue for the six months ended June 30, 2011, compared with a net loss attributable to the Company of $1.96 million on $3,934 of net revenue for the same period a year ago. The Company's balance sheet at June 30, 2011, showed $1.19 million in total assets, $880,561 in total liabilities and a $317,872 in total stockholders' equity. As reported by the TCR on May 30, 2011, Jonathon P. Reuben, C.P.A. Accountancy Corporation, in Torrance, California, expressed substantial doubt about Waxess Holdings' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has incurred net losses since inception, and as of Dec. 31, 2010, had an accumulated deficit of $192,863. A full-text copy of the Form 10-Q is available for free at: http://is.gd/Npa67W About Waxess Holdings Waxess Holdings, Inc., is a technology firm, located in Newport Beach, Calif., that was incorporated in 2008 and develops and markets phone terminals capable of converging traditional landline, cellular and data services based on its patent portfolio. Waxess currently offers its DM1000 (cell@home) product through various channels, including several of the major US carriers, and is working to bring its higher performance, lower cost next generation DM1500 and MAT1000 products to the market. WJO INC: Exclusive Plan Filing Period Extended to Sept. 30 ---------------------------------------------------------- On Aug. 4, 2011, the U.S. Bankruptcy Court for the Eastern District of Pennsylvania extended WJO, Inc.'s exclusive period to file a plan of reorganization and to solicit acceptance of a filed plan until Sept. 30, 2011, and Oct. 30, 2011, respectively. About WJO Inc. Bristol, Pennsylvania-based WJO, Inc., operates six family practices located in Newtown, Bristol, Bensalem, Bustleton, South Philadelphia, and Bethlehem, Pennsylvania and consists of Board Certified Osteopathic Physicians specializing in Family Medicine. Prior to the petition date, and to allow the Company to restructure effectively, HyperOx Inc., HyperOx I, LP, HyperOx III, LP, and East Coast TMR, Inc., were merged into WJO. WJO filed for Chapter 11 bankruptcy protection (Bankr. E.D. Pa. Case No. 10-19894) on Nov. 15, 2010. The Debtor disclosed $19,923,802 in assets and $6,805,255 in liabilities as of the Chapter 11 filing. Albert A. Ciardi, III, Esq., Holly Elizabeth Smith, Esq., and Thomas Daniel Bielli, Esq., at Ciardi Ciardi & Astin, P.C., in Philadelphia, serve as the Debtor's bankruptcy counsel. Pond Lehocky Stern Giordano serves as the Debtor's special counsel to represent it in worker's compensation proceedings pertaining to the Therapeutic Magnetic Resonance treatments. Attorneys at Pachulski Stang Ziehl and Jones LLP, in Wilmington, Delaware, serve as counsel to the official committee of unsecured creditors. ParenteBeard LLC serves as the Committee's accountant and financial advisor. The United States Trustee has appointed David Knowlton as patient care ombudsman in the case. The Ombudsman is represented in the case by Karen Lee Turner, Esq., at Eckert Seamans Cherin & Mellott, LLC, as counsel. Tristate Capital Bank, the cash collateral lender, is represented in the case by lawyers at Benesch Friedlander Coplan & Aronoff LLP. W.R. GRACE: Still Addressing 100+ Asbestos Claims ------------------------------------------------- relating to the Company's asbestos-containing products and more than 200 claims filed by the Company's employees or former employees, according to the Company's August 5, 2011 Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2011. The Bankruptcy Court established a bar date of March 31, 2003, for claims of general unsecured creditors, asbestos-related property damage claims and medical monitoring claims related to asbestos. The bar date did not apply to asbestos-related personal injury claims or claims related to property damage as a result of using the Company's Zonolite Attic Insulation products. Approximately 14,900 proofs of claim were filed by the March 31, 2003, bar date. Of these claims, approximately 9,500 were non-asbestos related, approximately 4,400 were PD Claims, and approximately 1,000 were for medical monitoring. The medical monitoring claims were made by individuals who allege exposure to asbestos through Grace's products or operations. Under the Joint Plan of Reorganization, these claims would be channeled to the PI Trust for resolution. In addition, approximately 800 proofs of claim were filed after the bar date. Approximately 6,685 non-asbestos related claims were filed by employees or former employees for benefits arising from Grace's existing plans, programs, and policies regarding employee bonuses and other compensation, indemnity agreements or various medical, insurance, severance, retiree and other benefits. On July 3, 2010, the Bankruptcy Court entered an order disallowing the Employee Claims because: (i) Grace has continued to pay its Grace Benefit Programs obligations during the Chapter 11 Cases and intends to do so for the remainder of the Chapter 11 Cases and thereafter; and (ii) pursuant to the Joint Plan, Grace is assuming its obligations under the Grace Benefit Programs and will continue to pay all such obligations pursuant to the terms and conditions of the applicable Grace Benefit Programs. The omnibus objection to Employee Claims does not address an additional approximately 255 claims filed by employees and former employees. These remaining employee-related claims will be addressed through the claim objection process and the dispute resolution procedures approved by the Bankruptcy Court. The remaining non-asbestos, non-employee related claims include claims for payment of goods and services, taxes, product warranties, principal and interest under pre-petition credit facilities, amounts due under leases and other contracts, leases and other executory contracts rejected in the Chapter 11 Cases, environmental remediation, pending non-asbestos-related litigation, and non-asbestos-related personal injury. The Debtors analyzed the claims filed pursuant to the March 31, 2003, bar date and found that many are duplicates, represent the same claim filed against more than one of the Debtors, lack any supporting documentation, or provide insufficient supporting documentation. As of June 30, 2011, of the approximately 4,335 non-ZAI PD Claims filed, approximately 395 claims have been resolved, approximately 3,905 claims have been expunged, reclassified by the Debtors or withdrawn by claimants, leaving approximately 35 claims to be addressed through the property damage case management order approved by the Bankruptcy Court or the Joint Plan or another plan of reorganization. The claims remaining to be addressed include 16 asbestos property damage claims that had been expunged by a Bankruptcy Court order that was reversed by an order of the District Court on September 29, 2009. As of June 30, 2011, of the approximately 3,300 non-asbestos claims filed, approximately 1,925 have been expunged or withdrawn by claimants, approximately 1,190 have been resolved, and an additional approximately 185 claims are to be addressed through the claim objection process and the dispute resolution procedures approved by the Bankruptcy Court. Additionally, by order dated June 17, 2008, the Bankruptcy Court established October 31, 2008 as the bar date for ZAI PD Claims related to property located in the U.S. As of June 30, 2011, approximately 19,260 US ZAI PD Claims have been filed. In addition, on October 21, 2008, the Bankruptcy Court entered an order establishing August 31, 2009 as the bar date for ZAI PD Claims related to property located in Canada. Under the Amended Settlement, notwithstanding the Canadian ZAI PD Claims Bar Date of August 31, 2009, all Canadian ZAI PD Claimants who have filed a proof of claim by December 31, 2009, shall be entitled to seek compensation from the Canadian ZAI PD Claims Fund to be established pursuant to the Amended Settlement. As of June 30, 2011, approximately 14,100 Canadian ZAI PD Claims have been filed. The Joint Plan provides for the channeling of US ZAI PD Claims and Canadian ZAI PD Claims to the Asbestos PD Trust created under the Joint Plan, and the subsequent transfer of Canadian ZAI PD Claims to a Canadian fund. No bar date has been set for personal injury claims related to ZAI. The Joint Plan provides that ZAI PI Claims would be channeled to the Asbestos PI Trust created under the Joint Plan. Grace is continuing to analyze and review unresolved claims in relation to the Joint Plan. Grace believes that its recorded liabilities for claims subject to the March 31, 2003, bar date represent a reasonable estimate of the ultimate allowable amount for claims that are not in dispute or have been submitted with sufficient information to both evaluate the merit and estimate the value of the claim. The PD Claims are considered as part of Grace's overall asbestos liability and are being accounted for in accordance with the conditions precedent under the Prior Plan. 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: Cryovac Suits vs. Sealed Air Stayed ----------------------------------------------- Class action lawsuits filed against Sealed Air Corporation as a result of its purchase of W.R. Grace & Co.'s Cryovac packaging business in 1998 remain stayed due to Grace's Chapter 11 bankruptcy case, according to Sealed Air's August 5, 2011 Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended June 30, 2011. Since the beginning of 2000, Sealed Air has been served with a number of lawsuits alleging that, as a result of the Cryovac transaction, it is responsible for alleged asbestos liabilities of Grace and its subsidiaries, some of which were also named as co- defendants in some of these actions. Among these lawsuits are several purported class actions and a number of personal injury lawsuits. Some plaintiffs seek damages for personal injury or wrongful death, while others seek medical monitoring, environmental remediation or remedies related to an attic insulation product. Neither the former Sealed Air Corporation nor Cryovac, Inc. ever produced or sold any of the asbestos-containing materials that are the subjects of these cases. None of these cases has reached resolution through judgment, settlement or otherwise. Grace's Chapter 11 bankruptcy proceeding has stayed all of these cases. 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) * FDIC's 'Problem' List Shrinks for First Time Since 2006 --------------------------------------------------------- Bloomberg News reports that the Federal Deposit Insurance Corp.'s list of "problem" banks fell in the second quarter for the first time since 2006 as the industry's income improved and costs tied to bad loans eased. The confidential list of banks deemed at greater risk of collapse shrank by 23 firms to 865, the FDIC said Aug. 23 in its Quarterly Banking Profile. The last time that happened was the third quarter of 2006 before the credit crisis began, the agency said. The FDIC defines "problem" institutions as those with financial, operational or managerial weaknesses that threaten their viability. According to the report, the deposit insurance fund, which protects customer holdings up to $250,000 per account in the event of a failure, was positive for the first time in two years, the agency said. The fund, which had been depleted by a wave of bank failures stemming from the collapse of the U.S. housing market, rose to $3.9 billion, because of fewer expected bank failures and assessment revenue, the agency said. The FDIC insures deposits at more than 7,500 banks and thrifts. The agency, the report relates, said it is prepared to deal with dismantling any lenders that fail if the need arises, citing new authority granted by the Dodd-Frank regulatory overhaul. The Dodd-Frank Act requires the FDIC to craft regulations including the so-called living wills rule, which would force systemically risky firms to spell out how they can be unwound in the event of a collapse. * Supreme Court Ruling Curtails Power of Bankruptcy Judges ---------------------------------------------------------- Dow Jones' DBR Small Cap reports that leave it to Anna Nicole Smith to shake up the bankruptcy system. * Cohen & Grigsby Adds Christine Bowers to Business and Tax Group ----------------------------------------------------------------- Cohen & Grigsby, a business law firm with headquarters in Pittsburgh, PA and an office in Bonita Springs, FL, appointed Christine Bowers as senior counsel in the firm's Business and Tax Group. In this role, Bowers will advise clients across the entire business development life cycle on various domestic and international tax issues. She will assist clients in structuring business transactions, tax planning for partnerships, limited liability companies, S corporations, tax-exempt organizations and in handling tax disputes. "Christine is a valuable addition to the firm," said Jack Elliott, president and chief executive officer of Cohen & Grigsby. "Her accomplishments, both academically and professionally, will serve her well as she advises and represents clients." Prior to joining Cohen & Grigsby, Bowers worked as an associate at Buchanan, Ingersoll & Rooney, PC in the areas of tax and employee benefits. Previously, Bowers worked as a manager of international tax services in the Pittsburgh office of Deloitte Tax LLP, where she planned and implemented internal restructurings for multinational corporations, and as a tax associate at a large law firm based in Richmond, Virginia. Bowers also served as an attorney-advisor to the Hon. L. Paige Marvel of the United States Tax Court in Washington, D.C. Bowers earned her LL.M. in Taxation from the New York University School of Law and her J.D. from the University of Pittsburgh School of Law. She also received a Bachelor of Arts in Psychology from Boston University. About Cohen & Grigsby Established in 1981 in Pittsburgh, PA, Cohen & Grigsby -- http://www.cohenlaw.com/-- is a business law firm with headquarters in Pittsburgh and an office in Bonita Springs, FL. Cohen & Grigsby attorneys cultivate a culture of performance by serving as business counselors as well as legal advisors to an extensive list of clients that includes private and publicly held businesses, nonprofits, multinational corporations, individuals and emerging companies. The firm has more than 130 lawyers in eight practice groups - Business & Tax, Labor & Employment, Immigration/International Business, Real Estate, Intellectual Property, Litigation, Bankruptcy & Creditors' Rights, and Estates & Trusts. * Paul Hastings Lures Shearman Bankruptcy, Financing Pro -------------------------------------------------------- Paul Hastings LLP announced Tuesday that Michael Baker has joined the Leveraged Finance practice in New York. Mr. Baker, previously with Shearman & Sterling LLP, is a prominent leveraged finance lawyer with extensive bank lending experience. His arrival follows the addition of leveraged finance partners Michael Michetti and Rich Farley, who joined in July and June, respectively. "Michael's hire marks another important step in our strategy to build a top-tier leveraged finance group in New York and throughout our global network," said William Schwitter, chair of the Leveraged Finance practice. "His experience in bank lending complements our existing global finance capabilities and together with the recent additions of Mike Michetti and Rich Farley, means we can advise clients on their most complex transactions," he added. "Our recent leveraged finance expansion illustrates our commitment to delivering clients superior finance expertise," said Elizabeth Noe, chair of the Corporate practice. "We are excited to be welcoming Michael at this critical stage in our growth," she added. Mr. Baker's practice is focused on representing senior lenders, subordinated lenders and borrowers in connection with domestic and international acquisition and leveraged buyout financings, workouts, debt restructurings, debtor-in-possession financings, structured financings and intercreditor issues, with a special emphasis on Canadian-US cross-border and global financing transactions. Paul Hastings is a leading global law firm with offices in Asia, Europe, and the United States. * Recent Small-Dollar & Individual Chapter 11 Filings ----------------------------------------------------- In Re DCS Systems, Inc. Bankr. M.D. Ala. Case No. 11-11350 Chapter 11 Petition filed August 11, 2011 See http://bankrupt.com/misc/almb11-11350.pdf In Re Amir Pizza Group Inc. Bankr. C.D. Calif. Case No. 11-21294 Chapter 11 Petition filed August 11, 2011 See http://bankrupt.com/misc/cacb11-21294.pdf In Re Darryl Boyd Bankr. C.D. Calif. Case No. 11-44163 Chapter 11 Petition filed August 11, 2011 In Re Joseph Bonafede Bankr. C.D. Calif. Case No. 11-21296 Chapter 11 Petition filed August 11, 2011 In Re Rosario Jimenez Bankr. C.D. Calif. Case No. 11-44293 Chapter 11 Petition filed August 11, 2011 In Re Steve Simmons Bankr. E.D. Calif. Case No. 11-39537 Chapter 11 Petition filed August 11, 2011 In Re Bell Machine & Fabrication, Inc. Bankr. W.D. Ky. Case No. 11-33912 Chapter 11 Petition filed August 11, 2011 See http://bankrupt.com/misc/kywb11-33912.pdf In Re Mark Hemby Bankr. D. Md. Case No. 11-26476 Chapter 11 Petition filed August 11, 2011 In Re TVHG, LLC Bankr. W.D. Mo. Case No. 11-21407 Chapter 11 Petition filed August 11, 2011 See http://bankrupt.com/misc/mowb11-21407.pdf In Re Frank Meoli Bankr. D. Nev. Case No. 11-22733 Chapter 11 Petition filed August 11, 2011 In Re Salvador Espinoza Bankr. D. Nev. Case No. 11-22728 Chapter 11 Petition filed August 11, 2011 In Re Gold Eagle Funding Corp. Bankr. E.D.N.Y. Case No. 11-46926 Chapter 11 Petition filed August 11, 2011 filed pro se In Re Pirates Pub, Inc. Bankr. E.D. N.C. Case No. 11-06179 Chapter 11 Petition filed August 11, 2011 See http://bankrupt.com/misc/nceb11-06179.pdf In Re Falu Flowers And Funeral Home Corp. Bankr. D. Puerto Rico Case No. 11-06777 Chapter 11 Petition filed August 11, 2011 See http://bankrupt.com/misc/prb11-06777.pdf In Re Macaracahimbo Investment Inc. Bankr. D. Puerto Rico Case No. 11-06773 Chapter 11 Petition filed August 11, 2011 See http://bankrupt.com/misc/prb11-06773.pdf In Re The Carpet Mill Outlet, Inc. Bankr. N.D. Texas Case No. 11-44573 Chapter 11 Petition filed August 11, 2011 See http://bankrupt.com/misc/txnb11-44573.pdf In Re Corporate Interactive & Web, Inc. Bankr. S.D. Texas Case No. 11-36912 Chapter 11 Petition filed August 11, 2011 See http://bankrupt.com/misc/txsb11-36912.pdf In Re TYEBS, Inc. dba Quality Commercial Printing fdba QCP Print Solutions aka QCP Bankr. S.D. Texas Case No. 11-36911 Chapter 11 Petition filed August 11, 2011 See http://bankrupt.com/misc/txsb11-36911.pdf In Re AS Warehouse Corporation Bankr. W.D. Texas Case No. 11-31544 Chapter 11 Petition filed August 11, 2011 See http://bankrupt.com/misc/txwb11-31544.pdf In Re Carolly Erickson Bankr. E.D. Wash. Case No. 11-03949 Chapter 11 Petition filed August 11, 2011 In Re Clare House Bungalow Homes, LLC Bankr. E.D. Wash. Case No. 11-03981 Chapter 11 Petition filed August 11, 2011 filed pro se In Re Two Rivers Ranch I, LLC Bankr. E.D. Wash. Case No. 11-03963 Chapter 11 Petition filed August 11, 2011 See http://bankrupt.com/misc/waeb11-03963.pdf In Re Michael Graeff Bankr. W.D. Wash. Case No. 11-46477 Chapter 11 Petition filed August 11, 2011 In Re Larry Sheffield Bankr. D. Ariz. Case No. 11-23253 Chapter 11 Petition filed August 12, 2011 In Re Bunny Bowers Bankr. C.D. Calif. Case No. 11-21328 Chapter 11 Petition filed August 12, 2011 In Re Michael Snyder Bankr. C.D. Calif. Case No. 11-21373 Chapter 11 Petition filed August 12, 2011 In Re Richard Kashfi Bankr. N.D. Calif. Case No. 11-57580 Chapter 11 Petition filed August 12, 2011 In Re Frank Russo Bankr. M.D. Fla. Case No. 11-15266 Chapter 11 Petition filed August 12, 2011 In Re Tracy Sunderlage Bankr. N.D. Ill. Case No. 11-83571 Chapter 11 Petition filed August 12, 2011 In Re Hannastreet, LLC Bankr. S.D. Ind. Case No. 11-10220 Chapter 11 Petition filed August 12, 2011 See http://bankrupt.com/misc/insb11-10220.pdf In Re Stephen Bonifield Bankr. S.D. Ind. Case No. 11-10222 Chapter 11 Petition filed August 12, 2011 In Re Russell Tarter Bankr. S.D. Ind. Case No. 11-10223 Chapter 11 Petition filed August 12, 2011 In Re SBT Enterprises, LLC dba Steve-O's Italian Kitchen Bankr. W.D. Ky. Case No. 11-33950 Chapter 11 Petition filed August 12, 2011 See http://bankrupt.com/misc/kywb11-33950.pdf In Re Gregory Everett Bankr. W.D. La. Case No. 11-51175 Chapter 11 Petition filed August 12, 2011 In Re Interior Dimensions of New England, LLC Bankr. D. Mass. Case No. 11-17685 Chapter 11 Petition filed August 12, 2011 See http://bankrupt.com/misc/mab11-17685.pdf In Re Kirk Seaman Rosemarie Seaman Bankr. D. Md. Case No. 11-26524 Chapter 11 Petition filed August 12, 2011 In Re Fournier Trucking, Inc. Bankr. D. N.H. Case No. 11-13061 Chapter 11 Petition filed August 12, 2011 See http://bankrupt.com/misc/nhb11-13061.pdf In Re Min Park Bankr. D. N.M. Case No. 11-13661 Chapter 11 Petition filed August 12, 2011 In Re Town & Ranch Sandia Real Estate, LLC Bankr. D. N.M. Case No. 11-13645 Chapter 11 Petition filed August 12, 2011 See http://bankrupt.com/misc/nmb11-13645p.pdf See http://bankrupt.com/misc/nmb11-13645c.pdf In Re The PDM Group, Inc. Bankr. E.D. Pa. Case No. 11-22149 Chapter 11 Petition filed August 12, 2011 See http://bankrupt.com/misc/paeb11-22149.pdf In Re 275 Pleasant Valley Holdings Corp. Bankr. W.D. Pa. Case No. 11-25123 Chapter 11 Petition filed August 12, 2011 See http://bankrupt.com/misc/pawb11-25123.pdf In Re Noemi Maldonado-Maldonad Bankr. D. Puerto Rico Case No. 11-06819 Chapter 11 Petition filed August 12, 2011 In Re Bella Jewelry, Inc. Bankr. N.D. Texas Case No. 11-35167 Chapter 11 Petition filed August 12, 2011 See http://bankrupt.com/misc/txnb11-35167p.pdf See http://bankrupt.com/misc/txnb11-35167c.pdf In Re C & G Investment Group, LLC dba C & G Technical Group Bankr. N.D. Texas Case No. 11-44611 Chapter 11 Petition filed August 13, 2011 See http://bankrupt.com/misc/txnb11-44611.pdf In Re Andria Grable Bankr. C.D. Calif. Case No. 11-44527 Chapter 11 Petition filed August 14, 2011 In Re Treesmith Enterprises, Inc. Bankr. C.D. Calif. Case No. 11-21394 Chapter 11 Petition filed August 14, 2011 See http://bankrupt.com/misc/cacb11-21394.pdf In Re Phuong Mak Bankr. N.D. Calif. Case No. 11-32988 Chapter 11 Petition filed August 14, 2011 In Re Moody Tire Service, Inc. Bankr. M.D. Ala. Case No. 11-32052 Chapter 11 Petition filed August 15, 2011 See http://bankrupt.com/misc/almb11-32052.pdf In Re George Sherrod Bankr. N.D. Ala. Case No. 11-82810 Chapter 11 Petition filed August 15, 2011 In Re Terry Lyons Bankr. N.D. Ala. Case No. 11-42118 Chapter 11 Petition filed August 15, 2011 In Re David Roth Bankr. C.D. Calif. Case No. 11-19778 Chapter 11 Petition filed August 15, 2011 In Re Joan Kincaid Bankr. C.D. Calif. Case No. 11-44749 Chapter 11 Petition filed August 15, 2011 In Re Jose Alvarez Bankr. C.D. Calif. Case No. 11-19802 Chapter 11 Petition filed August 15, 2011 In Re Maria Buttler Bankr. C.D. Calif. Case No. 11-44596 Chapter 11 Petition filed August 15, 2011 In Re Arsenio Hipolito Bankr. E.D. Calif. Case No. 11-39844 Chapter 11 Petition filed August 15, 2011 In Re Evaristo Rodriguez Bankr. N.D. Calif. Case No. 11-48722 Chapter 11 Petition filed August 15, 2011 In Re Alco Concrete Pumping, Inc. Bankr. M.D. Fla. Case No. 11-12394 Chapter 11 Petition filed August 15, 2011 See http://bankrupt.com/misc/flmb11-12394.pdf In Re Estaban Ruiz Bankr. M.D. Fla. Case No. 11-15365 Chapter 11 Petition filed August 15, 2011 In Re Horizon Construction Management Services, LLC Bankr. M.D. Fla. Case No. 11-15340 Chapter 11 Petition filed August 15, 2011 See http://bankrupt.com/misc/flmb11-15340.pdf In Re Leonard Wallace Bankr. D. Idaho Case No. 11-21077 Chapter 11 Petition filed August 15, 2011 In Re Manuel Rojas Bankr. N.D. Ill. Case No. 11-33221 Chapter 11 Petition filed August 15, 2011 In Re Ricky King Bankr. N.D. Ind. Case No. 11-13111 Chapter 11 Petition filed August 15, 2011 In Re Lela Jenks Bankr. D. Kan. Case No. 11-12500 Chapter 11 Petition filed August 15, 2011 In Re Kids Only III of Lafayette, LLC Bankr. W.D. La. Case No. 11-51178 Chapter 11 Petition filed August 15, 2011 See http://bankrupt.com/misc/lawb11-51178.pdf In Re Jeffrey Sowada Bankr. D. Minn. Case No. 11-35227 Chapter 11 Petition filed August 15, 2011 In Re Frank Bleuss Bankr. D. Nev. Case No. 11-52597 Chapter 11 Petition filed August 15, 2011 In Re Mary Jayne Langan Bankr. D. Nev. Case No. 11-22892 Chapter 11 Petition filed August 15, 2011 In Re Mary Holder Agency, Inc. dba Mary Holder Realtor Agency, Inc. fdba Better Homes and Gardens Real Estate Mary Holder Bankr. D. N.J. Case No. 11-34280 Chapter 11 Petition filed August 15, 2011 See http://bankrupt.com/misc/njb11-34280.pdf In Re Lift Gym, Inc. Bankr. S.D.N.Y. Case No. 11-13896 Chapter 11 Petition filed August 15, 2011 See http://bankrupt.com/misc/nysb11-13896.pdf In Re Lavern Berger Bankr. D. N.D. Case No. 11-30804 Chapter 11 Petition filed August 15, 2011 In Re CWE Holdings Inc. dba DG Landcare Services Bankr. W.D. Wash. Case No. 11-19695 Chapter 11 Petition filed August 15, 2011 filed pro se In Re Belle-Kirk Pacific Holdings, Inc. dba Fastsign Bellevue 106 Bankr. W.D. Wash. Case No. 11-19706 Chapter 11 Petition filed August 15, 2011 See http://bankrupt.com/misc/wawb11-19706.pdf In Re Kenneth Kottke Bankr. D. Wyo. Case No. 11-20906 Chapter 11 Petition filed August 15, 2011 In Re Jean Nelson Bankr. C.D. Calif. Case No. 11-36280 Chapter 11 Petition filed August 16, 2011 In Re Todd Nelson Bankr. C.D. Calif. Case No. 11-21492 Chapter 11 Petition filed August 16, 2011 In Re Myrna Mapa Bankr. N.D. Calif. Case No. 11-48767 Chapter 11 Petition filed August 16, 2011 In Re Arcade Lithographing Corp. Bankr. M.D. Fla. Case No. 11-15437 Chapter 11 Petition filed August 16, 2011 See http://bankrupt.com/misc/flmb11-15437.pdf In Re Commercial Door International, Inc. Bankr. M.D. Fla. Case No. 11-15420 Chapter 11 Petition filed August 16, 2011 See http://bankrupt.com/misc/flmb11-15420.pdf In Re Harden Supply, LLC Bankr. M.D. Fla. Case No. 11-15445 Chapter 11 Petition filed August 16, 2011 See http://bankrupt.com/misc/flmb11-15445.pdf In Re Wade Craighead Bankr. N.D. Ga. Case No. 11-73765 Chapter 11 Petition filed August 16, 2011 In Re I.C.X.C.N., Inc. Bankr. E.D. Mich. Case No. 11-62026 Chapter 11 Petition filed August 16, 2011 See http://bankrupt.com/misc/mieb11-62026.pdf In Re Ricky Bell Bankr. S.D. Miss. Case No. 11-51864 Chapter 11 Petition filed August 16, 2011 In Re Morris Winograd Bankr. D. N.J. Case No. 11-34387 Chapter 11 Petition filed August 16, 2011 In Re Scott Blow Bankr. D. N.J. Case No. 11-34379 Chapter 11 Petition filed August 16, 2011 In Re WRCC, LLC Bankr. D. N.M. Case No. 11-13700 Chapter 11 Petition filed August 16, 2011 See http://bankrupt.com/misc/nmb11-13700.pdf In Re Bright Start Centers, Inc. dba Kiddie Academy Bankr. S.D.N.Y. Case No. 11-37339 Chapter 11 Petition filed August 16, 2011 See http://bankrupt.com/misc/nysb11-37339.pdf In Re Schoonover Properties, LLC Bankr. S.D. Ohio Case No. 11-14996 Chapter 11 Petition filed August 16, 2011 See http://bankrupt.com/misc/ohsb11-14996.pdf In Re Joon Associates, Inc. dba Trocadero Theatre Bankr. E.D. Pa. Case No. 11-16432 Chapter 11 Petition filed August 16, 2011 See http://bankrupt.com/misc/paeb11-16432.pdf In Re Steambelly Holdings L.P. Bankr. E.D. Pa. Case No. 11-16426 Chapter 11 Petition filed August 16, 2011 See http://bankrupt.com/misc/paeb11-16426.pdf In Re Victor Diaz Morales Bankr. D. Puerto Rico Case No. 11-06916 Chapter 11 Petition filed August 16, 2011 In Re A.C.M. Home Health Services Inc. dba Fey Home Health Services Bankr. S.D. Texas Case No. 11-70504 Chapter 11 Petition filed August 16, 2011 See http://bankrupt.com/misc/txsb11-70504.pdf In Re Jon Carpenter Bankr. W.D. Wash. Case No. 11-19741 Chapter 11 Petition filed August 16, 2011 In Re Carpenter & Chase, LLC Bankr. D. Wyo. Case No. 11-20908 Chapter 11 Petition filed August 16, 2011 See http://bankrupt.com/misc/wyb11-20908.pdf In Re Delmy Coto Bankr. D. Ariz. Case No. 11-23676 Chapter 11 Petition filed August 17, 2011 In Re Don Stoll Bankr. D. Ariz. Case No. 11-23650 Chapter 11 Petition filed August 17, 2011 In Re Huntley Associates LLC Bankr. C.D. Calif. Case No. 11-45135 Chapter 11 Petition filed August 17, 2011 See http://bankrupt.com/misc/cacb11-45135.pdf In Re Ray Leung Bankr. C.D. Calif. Case No. 11-45032 Chapter 11 Petition filed August 17, 2011 In Re Michael Silvas Bankr. N.D. Calif. Case No. 11-13062 Chapter 11 Petition filed August 17, 2011 In Re Kathleen Wolf Bankr. D. Colo. Case No. 11-29593 Chapter 11 Petition filed August 17, 2011 In Re Sammy Hotels, LLC Bankr. D. Colo. Case No. 11-29555 Chapter 11 Petition filed August 17, 2011 See http://bankrupt.com/misc/cob11-29555.pdf In Re Marc Friedman Bankr. S.D. Fla. Case No. 11-32987 Chapter 11 Petition filed August 17, 2011 In Re Payara International Corporation Bankr. S.D. Fla. Case No. 11-32955 Chapter 11 Petition filed August 17, 2011 filed pro se In Re Robi Excavating Inc. Bankr. N.D. Ill. Case No. 11-83640 Chapter 11 Petition filed August 17, 2011 See http://bankrupt.com/misc/ilnb11-83640.pdf In Re Robert Madden Bankr. D. Mass. Case No. 11-17805 Chapter 11 Petition filed August 17, 2011 In Re Shoe Crave LLC Bankr. D. Md. Case No. 11-26839 Chapter 11 Petition filed August 17, 2011 See http://bankrupt.com/misc/mdb11-26839.pdf In Re Wilma and the Messengers Ministries Bankr. E.D. Mo. Case No. 11-48778 Chapter 11 Petition filed August 17, 2011 See http://bankrupt.com/misc/moeb11-48778.pdf In Re Mike Dougherty Bankr. D. Nev. Case No. 11-23060 Chapter 11 Petition filed August 17, 2011 In Re NPX Corp. Bankr. D. Nev. Case No. 11-23065 Chapter 11 Petition filed August 17, 2011 filed pro se In Re Fishbein Family, LLC Bankr. D. N.J. Case No. 11-34514 Chapter 11 Petition filed August 17, 2011 See http://bankrupt.com/misc/njb11-34514.pdf In Re Glick Rentals, LLC Bankr. D. N.J. Case No. 11-34449 Chapter 11 Petition filed August 17, 2011 filed pro se In Re 552 West 24th LLC Bankr. E.D.N.Y. Case No. 11-47104 Chapter 11 Petition filed August 17, 2011 filed pro se In Re Sagamore Ventures LLC Bankr. E.D.N.Y. Case No. 11-75892 Chapter 11 Petition filed August 17, 2011 filed pro se In Re Jarrett Millwork, Inc. Bankr. S.D.N.Y. Case No. 11-23661 Chapter 11 Petition filed August 17, 2011 See http://bankrupt.com/misc/nysb11-23661.pdf In Re Donnaray Enterprises, LLC dba Broad River Coffee Company Bankr. W.D. N.C. Case No. 11-40516 Chapter 11 Petition filed August 17, 2011 See http://bankrupt.com/misc/ncwb11-40516.pdf In Re Cookeville Marble and Granite, Inc. Bankr. M.D. Tenn. Case No. 11-08175 Chapter 11 Petition filed August 17, 2011 See http://bankrupt.com/misc/tnmb11-08175.pdf In Re Dentis Sisson Bankr. W.D. Tenn. Case No. 11-12502 Chapter 11 Petition filed August 17, 2011 In Re Railroad Storage & Drayage, Inc. Bankr. D. Utah Case No. 11-32033 Chapter 11 Petition filed August 17, 2011 See http://bankrupt.com/misc/utb11-32033.pdf In Re Donald Ryals Bankr. S.D. Ala. Case No. 11-03332 Chapter 11 Petition filed August 18, 2011 In Re Lone Cactus Holding Company LLC Bankr. D. Ariz. Case No. 11-23708 Chapter 11 Petition filed August 18, 2011 See http://bankrupt.com/misc/azb11-23708.pdf In Re Nidia Almonte Bankr. D. Ariz. Case No. 11-23790 Chapter 11 Petition filed August 18, 2011 In Re Raymond Gilmore Bankr. E.D. Ark. Case No. 11-15383 Chapter 11 Petition filed August 18, 2011 In Re 1663 W 11th Place, LP Bankr. C.D. Calif. Case No. 11-45150 Chapter 11 Petition filed August 18, 2011 filed pro se In Re David Velkoff Bankr. C.D. Calif. Case No. 11-45255 Chapter 11 Petition filed August 18, 2011 In Re Dwight Bennett Bankr. E.D. Calif. Case No. 11-40155 Chapter 11 Petition filed August 18, 2011 In Re Darletta Lloyd Bankr. N.D. Calif. Case No. 11-33046 Chapter 11 Petition filed August 18, 2011 In Re MAC Distributing, Inc. Bankr. S.D. Ind. Case No. 11-81167 Chapter 11 Petition filed August 18, 2011 See http://bankrupt.com/misc/insb11-81167.pdf In Re RDM Enterprises, Inc. dba DR STEREO dba Snowman Property Services, LLC Bankr. D. Maine Case No. 11-21211 Chapter 11 Petition filed August 18, 2011 See http://bankrupt.com/misc/meb11-21211.pdf In Re National Equities of New York, Inc. Bankr. E.D.N.Y. Case No. 11-47163 Chapter 11 Petition filed August 18, 2011 See http://bankrupt.com/misc/nyeb11-47163.pdf In Re SRS Property Investment, Inc. Bankr. M.D. Pa. Case No. 11-05758 Chapter 11 Petition filed August 18, 2011 See http://bankrupt.com/misc/pamb11-05758.pdf In Re Edna Mattei Perez Bankr. D. Puerto Rico Case No. 11-06994 Chapter 11 Petition filed August 18, 2011 In Re Daniel Ciolos Bankr. M.D. Tenn. Case No. 11-08214 Chapter 11 Petition filed August 18, 2011 In Re Alexander McLaren Bankr. W.D. Wash. Case No. 11-19860 Chapter 11 Petition filed August 18, 2011 In Re Luis Torres Bankr. E.D. Wis. Case No. 11-32748 Chapter 11 Petition filed August 18, 2011 In Re Victory Temple Church Of 1st Born Intl. Bankr. E.D. Wis. Case No. 11-32822 Chapter 11 Petition filed August 18, 2011 See http://bankrupt.com/misc/wieb11-32822.pdf In Re Armen Dallakian Bankr. C.D. Calif. Case No. 11-45302 Chapter 11 Petition filed August 19, 2011 In Re Peter Calvo Bankr. S.D. Fla. Case No. 11-33197 Chapter 11 Petition filed August 19, 2011 In Re Justin Kastens Bankr. D. Kan. Case No. 11-12567 Chapter 11 Petition filed August 19, 2011 In Re Farmhouse Family Eatery, Inc. Bankr. E.D. Mich. Case No. 11-33913 Chapter 11 Petition filed August 19, 2011 See http://bankrupt.com/misc/mieb11-33913.pdf In Re Outdoor Rooms by Design LLC Bankr. W.D. Mo. Case No. 11-61797 Chapter 11 Petition filed August 19, 2011 See http://bankrupt.com/misc/mowb11-61797.pdf In Re Benson Podiatry Assoc. P.C. Bankr. D. Neb. Case No. 11-82117 Chapter 11 Petition filed August 19, 2011 See http://bankrupt.com/misc/neb11-82117.pdf In Re Glenn York Bankr. D. Neb. Case No. 11-82114 Chapter 11 Petition filed August 19, 2011 In Re Maxco, Inc. Bankr. D. Neb. Case No. 11-82113 Chapter 11 Petition filed August 19, 2011 See http://bankrupt.com/misc/neb11-82113.pdf In Re Patrick Malloy Bankr. D. Neb. Case No. 11-82115 Chapter 11 Petition filed August 19, 2011 In Re Richard Mercer Bankr. D. Nev. Case No. 11-23178 Chapter 11 Petition filed August 19, 2011 In Re Circus Beach Partners Inc. Bankr. D. N.J. Case No. 11-34741 Chapter 11 Petition filed August 19, 2011 See http://bankrupt.com/misc/njb11-34741.pdf In Re Claudio Meza Bankr. E.D.N.Y. Case No. 11-47197 Chapter 11 Petition filed August 19, 2011 In Re Keith Hills Bankr. S.D.N.Y. Case No. 11-37365 Chapter 11 Petition filed August 19, 2011 In Re Jones Body Shop, Inc. Bankr. M.D. N.C. Case No. 11-11280 Chapter 11 Petition filed August 19, 2011 See http://bankrupt.com/misc/ncmb11-11280.pdf In Re Jeffrey Reynolds Bankr. D. Ore. Case No. 11-37242 Chapter 11 Petition filed August 19, 2011 In Re Chicken Done Right, Inc. aka Hall's Honey Fried Chicken - Camp Wisdom Bankr. N.D. Texas Case No. 11-35252 Chapter 11 Petition filed August 19, 2011 See http://bankrupt.com/misc/txnb11-35252.pdf In Re Comprehensive Obstetrics & Gynecology of Granbury, PA Bankr. N.D. Texas Case No. 11-20465 Chapter 11 Petition filed August 19, 2011 See http://bankrupt.com/misc/txnb11-20465.pdf In Re Images Cosmetic and Laser Center, LLC Bankr. N.D. Texas Case No. 11-44718 Chapter 11 Petition filed August 19, 2011 See http://bankrupt.com/misc/txnb11-44718.pdf In Re DSW Restaurant, Inc. aka Lipstick Bankr. S.D. Texas Case No. 11-37093 Chapter 11 Petition filed August 19, 2011 See http://bankrupt.com/misc/txsb11-37093.pdf In Re Gregory Boldt Bankr. W.D. Wash. Case No. 11-19891 Chapter 11 Petition filed August 19, 2011 In Re Elton Ellzey Bankr. N.D. Ill. Case No. 11-34104 Chapter 11 Petition filed August 20, 2011 In Re Ramon Portela-Fernandez Bankr. D. Puerto Rico Case No. 11-07060 Chapter 11 Petition filed August 20, 2011 In Re RCP Investments VII, LLC Bankr. M.D. N.C. Case No. 11-81358 Chapter 11 Petition filed August 21, 2011 See http://bankrupt.com/misc/ncmb11-81358p.pdf See http://bankrupt.com/misc/ncmb11-81358c.pdf In Re NCH Rocky Point, LLC Bankr. D. Ariz. Case No. 11-24065 Chapter 11 Petition filed August 22, 2011 See http://bankrupt.com/misc/azb11-24065.pdf In Re Nenuca Ramirez Bankr. C.D. Calif. Case No. 11-45705 Chapter 11 Petition filed August 22, 2011 In Re Wall Concepts, Inc. Bankr. D. Colo. Case No. 11-29941 Chapter 11 Petition filed August 22, 2011 See http://bankrupt.com/misc/cob11-29941p.pdf See http://bankrupt.com/misc/cob11-29941c.pdf In Re Doug Larsen Construction, Inc. Bankr. D. Idaho Case No. 11-02567 Chapter 11 Petition filed August 22, 2011 See http://bankrupt.com/misc/idb11-02567.pdf In Re Construction Due Diligence Inc. Bankr. M.D. Fla. Case No. 11-15743 Chapter 11 Petition filed August 22, 2011 See http://bankrupt.com/misc/flmb11-15743.pdf In Re Fishbusterz Freight Company, LLC Bankr. S.D. Fla. Case No. 11-33382 Chapter 11 Petition filed August 22, 2011 See http://bankrupt.com/misc/flsb11-33382p.pdf See http://bankrupt.com/misc/flsb11-33382c.pdf In Re Mark Marable Bankr. N.D. Ga. Case No. 11-23440 Chapter 11 Petition filed August 22, 2011 In Re Rubin Schulman Bankr. N.D. Ga. Case No. 11-74229 Chapter 11 Petition filed August 22, 2011 In Re George Sirack Bankr. N.D. Ill. Case No. 11-34297 Chapter 11 Petition filed August 22, 2011 In Re Marche Design LLC Bankr. D. Kan. Case No. 11-41358 Chapter 11 Petition filed August 22, 2011 See http://bankrupt.com/misc/ksb11-41358.pdf In Re Jaime Francisco Bankr. D. Mass. Case No. 11-17910 Chapter 11 Petition filed August 22, 2011 In Re Joseph Cariglia Bankr. D. Mass. Case No. 11-43565 Chapter 11 Petition filed August 22, 2011 In Re Victory Chapel Church Corporation Bankr. D. Mass. Case No. 11-17960 Chapter 11 Petition filed August 22, 2011 See http://bankrupt.com/misc/mab11-17960.pdf In Re Victory Chapel Church Corporation Bankr. D. Mass. Case No. 11-43560 Chapter 11 Petition filed August 22, 2011 See http://bankrupt.com/misc/mab11-43560.pdf In Re Danny Tate Bankr. S.D. Miss. Case No. 11-02935 Chapter 11 Petition filed August 22, 2011 In Re Spyke L.L.C dba Randy Small Transportation Bankr. W.D. Mo. Case No. 11-43909 Chapter 11 Petition filed August 22, 2011 See http://bankrupt.com/misc/mowb11-43909.pdf In Re Sandra Millard Bankr. D. Nev. Case No. 11-52679 Chapter 11 Petition filed August 22, 2011 In Re Rachel Solomon Bankr. D. N.J. Case No. 11-35009 Chapter 11 Petition filed August 22, 2011 In Re Dora Forbes Bankr. E.D. N.C. Case No. 11-06431 Chapter 11 Petition filed August 22, 2011 In Re Andi-Zach, Inc. dba Skyline Chili Bankr. S.D. Ohio Case No. 11-15123 Chapter 11 Petition filed August 22, 2011 See http://bankrupt.com/misc/ohsb11-15123.pdf In Re Thomas Rutter Bankr. W.D. Pa. Case No. 11-11371 Chapter 11 Petition filed August 22, 2011 In Re Zandra Petway Bankr. M.D. Tenn. Case No. 11-08305 Chapter 11 Petition filed August 22, 2011 In Re Mary Lou Clemmons FLP Bankr. D. Utah Case No. 11-32299 Chapter 11 Petition filed August 22, 2011 ********* 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 ***