/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/110831.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, August 31, 2011, Vol. 15, No. 241 Headlines 3PEA INTERNATIONAL: Reports $59,700 Profit in 2nd Quarter 4KIDS ENTERTAINMENT: Accused of Underpaying 'Yu-Gi-Oh!' Royalties ABCLD HOLDINGS: Files List of Two Largest Unsecured Creditors ACCREDITED MEMBERS: Posts $640,300 Net Loss in 2nd Quarter ALEXIS BELLINO: Threatens to Sue Mag Over Bankruptcy Report ALLIED DEFENSE: Deregisters Unsold Securities AMR CORP: Ticonderoga Analyst Revises Rating to "Neutral" AMTRUST FINANCIAL: Bancorp Asks Court to Reject Plan Disclosures ANCHOR BANCORP: Extends CRO's Employment for 1 Year AQUILEX HOLDINGS: Posts $837,000 Net Loss in 2nd Quarter AQUILEX HOLDINGS: Cut by Moody's to 'Caa2' on Low Income ARCADIA RESOURCES: Voluntarily Delists Common Shares from NYSE ARCHBROOK LAGUNA: Court Authorizes Loughlin as Committee Advisor ARCHBROOK LAGUNA: Committee Retains Cooley LLP as Counsel ARK DEVELOPMENT: Creditor BB&T Wants Disclosure Statement Denied ARK DEVELOPMENT: Creditor to Foreclose, Seeks Dismissal Order BANK OF AMERICA: U.S. Bank Sues Over Soured Countrywide Loans BANNING LEWIS: Decision on Sale to Ultra Postponed to Sept. 13 SUMMIT BRANTLEY: Fails to Comply With Plan, Says U.S. Trustee BARNES BAY: Amends Plan to Address U.S. Trustee's Objections BEAR ISLAND: Files Chapter 11 Liquidation Plan BEAR VALLEY: Wants Tenants to Turnover Rent to Maintain Property BEARINGPOINT INC: Unsecured Creditors to Receive 3rd Distribution BERNARD L. MADOFF: Trustee Fights to Keep UniCredit Suit Alive BROADSTRIPE LLC: Wave Broadband Agrees to Buy All Assets CANO PETROLEUM: Cancels Commodity Swap Contracts with Natixis CD PETRO: Files for Chapter 7 Bankruptcy Protection CHERRY HILL: Files for Chapter 11 Bankruptcy Protection CHINA XINGBANG: Posts $510,700 Net Loss in 2nd Quarter CIRCUIT CITY: Wins Court OK to Sell IP Assets for $6 Million CIT GROUP: Moody's Rates Revolving Credit Facility at 'Ba3' CITY OF CENTRAL FALLS: Files List of 20 Largest Unsec. Creditors CNC DEVELOPMENT: UHY Vocation HK Raises Going Concern Doubt COMMERCETEL CORP: Posts $466,100 Net Loss in 2nd Quarter CONSHOHOCKEN COLLISION: Files for Chapter 7 Protection CRAWFORD FURNITURE: Files for Chapter 11 Bankruptcy Protection CUI GLOBAL: Stockholders OK 1-for-50 Reverse Stock Split CULTURE MEDIUM: Madsen & Associates Raises Going Concern Doubt CUMULUS MEDIA: Provides Procedures on Cash and Stock Elections DIAMONDHEAD CASINO: Incurs $273,900 Net Loss in Q2 Ended June 30 DK AGGREGATES: Hires H. Kenneth Lefoldt, Jr., as Accountant DREIER LLP: Trustee Settles Claims with 360 Networks for $40MM DRYSHIPS INC: Buys Majority of OceanFreight Shares for $33.7-Mil. DYNEGY INC: Douglas Hirsch Discloses 9.99% Equity Stake DYNEGY INC: Unit Offers to Purchase Outstanding 9% Secured Bonds E-DEBIT GLOBAL: Dismisses C&H as Accountants EASTBRIDGE INVESTMENT: Posts $341,100 Net Loss in 2nd Quarter EASTERN SECURITY: Reports $749,700 Net Income in 2nd Quarter EINSTEIN MOOMJY: Meeting to Form Creditors Committee on Sept. 7 EMERALD CASINO: Trustee's Suit v. D&Os Survives Dismissal Bid ENERGY EDGE: Earns $72,300 Net Income in 2nd Quarter ENFIN ENTERPRISES: Case Summary & 10 Largest Unsecured Creditors ENTREMED INC: Posts $1.7 Million Net Loss in Q2 Ended June 30 EPICEPT CORP: Files Form S-3, Registers $25MM Common Shares ESTATE FINANCIAL: Bryan Cave Battles $100MM Malpractice Suits EVERGREEN ENERGY: Inks Sales Agency Agreement with Lazard Capital EVERGREEN SOLAR: Seeks to Employ Bingham McCutchen as Counsel EVERGREEN SOLAR: Taps Hilco Industrial as Marketing & Sales Agent EVERGREEN SOLAR: Taps Zolfo Cooper as Financial Advisor FAITHSHARES CHRISTIAN: FaithShares Trust to Close & Liquidate Fund FANNIE MAE: Funds Group Sues Conservator Over Recovery Limit FELIX INVESTMENTS: GE Capital Obtains Stay Relief FIRST BANKS: Posts $18 Million Net Loss in 2nd Quarter FIRST MARINER: Awaits Results of NASDAQ Listing Appeal FLOORS-2-GO: Goes Into Administration, Lays Off 354 Workers FLURIDA GROUP: Reports $9,505 Net Income in 2nd Quarter FRISCO PS: Case Summary & 20 Largest Unsecured Creditors FUSION TELECOMMUNICATIONS: Borrows $47,000 from Marvin Rosen G&S LIVINGSTON: Taps Kosher & Company as Accountant G&S LIVINGSTON: Taps Stavitsky & Assoc. as Special Tax Counsel G&S LIVINGSTON: Hires Connell Foley as Bankruptcy Counsel G&S LIVINGSTON: Seeks to Employ Reed Smith as Tax Counsel GALP GRAYRIDGE: Court Dismisses Chapter 11 Bankruptcy Case GB HERNDON: Court Slows Down Planned Probe Against Bank GELT PROPERTIES: Taps Eisenberg Gold as Special Counsel GELT PROPERTIES: Taps Cohen And Foreman as Special Counsel GENERAL MOTORS: New GM's $450MM UAW Dispute Headed to Michigan GIORDANO'S ENTERPRISES: Firms Gauge Interest, Real Estate Assets GIORDANO'S ENTERPRISES: Hilco to Sell 14 Restaurant Properties GREENHOUSE HOLDINGS: Posts $975,600 Net Loss in 2nd Quarter GREGORY INVESTMENTS: Case Summary & 5 Largest Unsecured Creditors HALLWOOD ENERGY: Trustee Files $10M Loan Suit vs. Goldman Unit HARRY & DAVID: Wins Confirmation of Plan of Reorganization HART STORES: Gets Initial CCAA Order From Quebec Court HD SUPPLY: To Sell All Interests in Plumbing Business to Hajoca HEARUSA INC: Sale of Assets to Siemens Unit Approved HERCULES OFFSHORE: Files Fleet Status Report as of Aug. 25 HERCULES OFFSHORE: Registers 5-Mil. Shares Under Incentive Plan HORIZON LINES: To Exchange 4.25% Convertible Senior Notes HOTEL AIRPORT: Taps Francisco Molina as Accountant HUDSON HEALTHCARE: Creditors Protest Settlement With City INDIANAPOLIS DOWNS: Exclusivity Period Extended Until Jan. 6 INNER CITY MEDIA: Shareholders Get 2% Stake Under Yucaipa Plan INNKEEPERS USA: Sue Cerberus, Chatham Over Dead $1-Bil. Deal INNKEEPERS USA: Cerberus Suit May Be Capped at $20 Million INTERNATIONAL RARITIES: Files for Chapter 11 Bankruptcy IRVINE SENSORS: Marcus Williams Resigns from Board of Directors KEELEY AND GRABANSKI: Taps Kaler Doeling as Bankruptcy Counsel KERZNER INT'L: Faces Sept. 9 Deadline to Pay $2.6-Bil. Debt KEVIN WERRY: Court Rejects Bid to Hire Bauer & French LA CORTEZ ENERGY: Reports $982,300 Net Income in 2nd Quarter LA JOLLA: Inks 2nd Amendment Pact with Preferred Shares Holders LAMBUTH UNIVERSITY: Univ. of Memphis Leasing Facilities This Year LEHMAN BROTHERS: Court Sends Plan to Creditors for Voting LIONS GATE: S&P Affirms B- Corp. Credit Rating; Outlook Positive LOUISVILLE ORCHESTRA: Judge Stosberg Approves Chapter 11 Plan LOUISVILLE ORCHESTRA: Cancels Concerts in Next 2 Months LTS NUTRACEUTICALS: Posts $1.2-Mil. Net Loss in 2nd Quarter LYMAN LUMBER: ABC Inc., Chetek Employer, Also in Chapter 11 MACCO PROPERTIES: Files List of 21 Largest Unsecured Creditors MACCO PROPERTIES: Trustee Wants to Sell Real Property MANISTIQUE PAPERS: 341(a) Creditors' Meeting Set on Sept. 15 MANISTIQUE PAPERS: Court OKs Garden City as Claims Agent MARCO POLO: Taps Bracewell & Giulliani as Attorney MARCO POLO: Taps Kurtzman Carson as Notice & Claims Agent MARCO POLO: Committee Taps Blank Rome as Attorney MARCO POLO: Can Pay $1.2 Mil. to Critical Vendors on Interim Basis MARKET STREET: Wants Boxer Out of Escrow Account Distribution MARKET STREET: Capital One Wants on Escrow Funds Release Method MARKWEST ENERGY: Moody's Upgrades Corp. Family Rating to 'Ba2' MAS TEC: Moody's Keeps Ba3 Corporate After Expanded Bank Credit MATCHES INC: Reports $892,200 Net Income in 2nd Quarter MAYVILLE DIE: Case Summary & 20 Largest Unsecured Creditors MCC HUMBLE: Court Directs Removal of Maaco Signage MCCLATCHY CO: Royal Bank Discloses 5.7% Equity Stake MCDERMOTT INT'L: Moody's Affirms 'Ba1' Corporate Family Rating MFJT LLC: Hearing on Cash Collateral Use Continued Until Oct. 25 MICHAELS STORES: Posts $10 Million Net Income in July 30 Quarter MILLENNIUM GLOBAL: U.S. Court Recognizes Bermuda Case MRA PELICAN: Court OKs Shraiberg Ferrara as Bankruptcy Counsel MSR RESORT: Resigned Members Want Settlement Agreement Denied NORTHCORE TECHNOLOGIES: Has "Speculative Buy" Rating from Byron MTB BRIDGEPORT: WSAH, TV42 in Bridgeport, Files Ch. 11 to Sell NTELOS HOLDINGS: S&P Affirms 'BB-' Corporate Credit Rating NUTRITION 21: Case Summary & 12 Largest Unsecured Creditors OMEGA NAVIGATION: HSH Nordbank Seeks Case Dismissal or Conversion OMEGA NAVIGATION: Retains Bracewell & Giuliani as Counsel ORDWAY RESEARCH: Converts Case to Chapter 7 Liquidation PARKERVISION INC: Posts $3.5 Million Net Loss in Q2 Ended June 30 PAUL BRENNEKE: Files List of Four Largest Unsecured Creditors PIEDMONT CENTER: Bankr. Administrator Wants Chapter 11 Trustee PIERRE DEUX: Potential Buyers Has Until This Week to Submit Bids PLATINUM RIDGE: Places Three Hotels on Auction Block POINT BLANK: Inks Stalking Horse Asset Purchase Deal with Gores PORTER BANCORP: Posts $40 Million Net Loss in 2nd Quarter PUBLIC MEDIA: Two Directors Resign from Board QR PROPERTIES: To Pay $7.5-Mil. to Webster Bank by Sept. 30 QUINCY MEDICAL: Selling Hospital to Steward Specialty for $38MM QUINCY MEDICAL: P. Care Ombudsman Taps Madoff & Khoury as Counsel QUINCY MEDICAL: Navigant Capital Approved as Financial Advisor QUINCY MEDICAL: Sept. 1 Disclosure Statement Hearing Called Off QUINCY MEDICAL: Suzanne Koenig Appointed as Patient Care Ombudsman QUINCY MEDICAL: Wants to Amend APA to Reflect Steward's Best Bid RETRO TELEVISION: Files for Bankruptcy Protection, Seeks Sale RICE PETROLEUM: Files for Chapter 7 Bankruptcy Protection RIDGE PARK: Can Use CSMC Cash Collateral Until Sept. 30 ROKAYOSA INC: Case Summary & 20 Largest Unsecured Creditors RW LOUISVILLE: Hearing on Case Dismissal Continued Until Sept. 27 RW LOUISVILLE: Plan Confirmation Hearing Scheduled for Sept. 20 RWJ CRESTWOOD: Voluntary Chapter 11 Case Summary RYLAND GROUP: To Wind Down Jacksonville and Dallas Operations SEARCHMEDIA HOLDINGS: Appoints J. Lo. as Chief Operating Officer SECUREALERT INC: Inks $8MM Loan & Security Pact with Sapinda UK SHASTA LAKE: Amends Schedules of Assets of Assets and Liabilities SHENGDATECH INC: Wants to Hire Alvarez & Marsal as CRO SHENGDATECH INC: Files List of 23 Largest Unsecured Creditors SOUTHWESTT GEORGIA: Files Plan, Unsecured Claims to Recover 3% SPANISH TRAIL: Hopes to Generate Cash to Pay Operating Expenses STONE SURFACES: Cash Collateral Use Extended Through Oct. 31 SUNNYVALE BUSINESS: Sec. 341 Creditors' Meeting Set for Sept. 13 SUNNYVALE BUSINESS: Taps Altfeld & Battaile as Counsel SUNNYVALE BUSINESS: Hires First Dartmouth as Restructuring Advisor SUPERIOR PROPERTY: Case Summary & 12 Largest Unsecured Creditors TETON AIR: Files List of 20 Largest Unsecured Creditors THAMES PRINTING: Plans to Respond Involuntary Petition by Sept. 21 TONYA LIGGION: Court Tosses Suit v. Branch Banking and Trust UNITED COMMUNICATIONS: Posts $451,000 Net Loss in 2nd Quarter UNITED GILSONITE: Can Hire Value Management as Valuation Advisor UNITED GILSONITE: Wiss & Company Hired as Financial Advisor UNIVERSAL BIOENERGY: Incurs $594,000 Net Loss in March 31 Qtr. USG CORP: Subsidiary to Close Eight Add'l Distribution Branches VENTANA HILLS: Montour to Get $1.4 Million in Back Property Taxes VOICE ASSIST: Posts $3.0 Million Net Loss in 2nd Quarter VU1 CORPORATION: Posts $1.8 Million Net Loss in 2nd Quarter WAGSTAFF MINNESOTA: Committee May Challenge Liens Until Sept. 17 WAGSTAFF PROPERTIES: Terra Properties Ok'd as Affiliate's Broker WHITEMUD RESOURCES: BIA Proposal Approved by Creditors WOMEN'S APPAREL: To Sell Assets in Mid-September Public Auction WOODS CANYON: Affiliates File Schedules of Assets and Liabilities WORLD SURVEILLANCE: Incurs $2.5 Million Net Loss in 2nd Quarter XYIENCE INC: Interlocutory Appeal Over $150MM Sanctions Bid Denied YARNELL'S ICE: Files for Chapter 7 Bankruptcy Protection ZOGENIX INC: Files Form S-1, Registers 12 Million Common Shares * RealtyTrac: Foreclosure Sales Climb While Sale Prices Decline * Ex-Kaye Scholer Atty Says Indictment May Prejudice Jury * BDO and KPMG Confirm Sale of KPMG's Consumer Insolvency Practice * Cohen & Grigsby Reaffirms Support of Arts Community * Upcoming Meetings, Conferences and Seminars ********* 3PEA INTERNATIONAL: Reports $59,700 Profit in 2nd Quarter --------------------------------------------------------- 3Pea International, Inc., filed its quarterly report on Form 10-Q, reporting net income of $59,656 on $665,033 of revenues for the three months ended June 30, 2011, compared with a net loss of $1,652 on $1.0 million of revenues for the same period last year. The Company reported net income of $66,116 on $1.6 million of revenues for the six months ended June 30, 2011, compared with a net loss of $53,893 on $1.5 million of revenues for the comparable period of 2010. The Company's balance sheet at June 30, 2011, showed $3.6 million in total assets, $6.7 million in total liabilities, and a stockholders' deficit of $3.1 million. Sarna & Company, in Thousand Oaks, Calif., expressed substantial doubt about 3Pea International's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered recurring losses from operations. A copy of the Form 10-Q is available at http://is.gd/Gqr4gL Henderson, Nev.-based 3Pea International, Inc., is a transaction- based solutions provider. 3PEA through its wholly owned subsidiary 3PEA Technologies, Inc., focuses on delivering reliable and secure payment solutions to help healthcare companies, pharmaceutical companies and payers businesses succeed in an increasingly complex marketplace. 4KIDS ENTERTAINMENT: Accused of Underpaying 'Yu-Gi-Oh!' Royalties ----------------------------------------------------------------- Eric Hornbeck at Bankruptcy Law360 reports that the owners of the rights to the popular "Yu-Gi-Oh!" Japanese manga told a New York bankruptcy judge Monday that 4Kids Entertainment Inc. had underpaid them royalties by over $4 million. "This case at its core is about a betrayal of trust," Kyle C. Bisceglie of Olshan Grundman Frome Rosenzweig & Wolosky LLP, an attorney for TV Tokyo Corp. and Nihon Ad Systems Inc., during opening arguments in the trial over royalty payments. About 4Kids Entertainment New York-based 4Kids Entertainment, Inc., dba 4Kids, is an entertainment and media company specializing in the youth oriented market, with operations in these business segments: (i) licensing, (ii) advertising and media broadcast, and (iii) television and film production/distribution. The parent entity, 4Kids Entertainment, was organized as a New York corporation in 1970. The principal driver for filing the Chapter 11 cases is the need to protect 4Kids' most valuable asset -- its rights under an exclusive license relating to the popular Yu-Gi- Oh! ("YGO") series of animated television programs -- from efforts by the licensor, a consortium of Japanese companies, to allegedly wrongfully terminate the license and force 4Kids out of business. 4Kids Entertainment, along with affiliates, filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-11607) on April 6, 2011. Kaye Scholer LLP is the Debtors' restructuring counsel. Epiq Bankruptcy Solutions, LLC, is the Debtors' claims and notice agent. BDO Capital Advisors, LLC, is the financial advisor and investment banker. EisnerAmper LLP fka Eisner LLP serves as auditor and tax advisor. 4Kids Entertainment, Inc., disclosed $78,397,971 in assets and $86,515,395 in liabilities as of the Chapter 11 filing. On July 8, 2011, Tracy Hope Davis, the U.S. Trustee for Region 2, appointed three members to the official committee of unsecured creditors in the Chapter 11 cases. Hahn & Hessen LLP serves as counsel to the Committee. ABCLD HOLDINGS: Files List of Two Largest Unsecured Creditors ------------------------------------------------------------- ABCLD Holdings, LLC, has filed with the U.S. Bankruptcy Court for the Northern District of Texas a list of its two largest unsecured creditors. Debtor's List of Two Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ American Realty Trust 1800 Valley View Lane, Suite 300 Dallas, TX 75234 Note $260,131.00 Dallas County Tax Office John R. Ames, CTA 500 Elm Street 2010 and 2011 Dallas, TX 75202 taxes $194,783.00 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. According to its schedules, the Debtor disclosed $66,579,892 in total assets and $40,454,914 in total debts. 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. ACCREDITED MEMBERS: Posts $640,300 Net Loss in 2nd Quarter ---------------------------------------------------------- Accredited Members Holding Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $640,314 on $420,965 of revenue for the three months ended June 30, 2011, compared with a net loss $187,536 on $772,885 of revenue for the same period last year. The Company reported a net loss of $993,427 on $1.0 million of revenue for the six months ended June 30, 2011, compared with a net loss of $718,027 on $1.0 million of revenue for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $4.2 million in total assets, $2.2 million in total liabilities, and stockholders' equity of $2.0 million. As reported in the TCR on April 12, 2011, GHP Horwath, P.C., in Denver, expressed substantial doubt about Accredited Members Holding's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company reported a net loss of approximately $2,600,000 and used net cash in operating activities of approximately $2,100,000 in 2010, and has an accumulated deficit of approximately $4,200,000 at Dec. 31, 2010. A copy of the Form 10-Q is available at http://is.gd/q8ziC5 About Accredited Members Accredited Members Holding Corporation (OTC BB: ACCM) was not, until Feb. 24, 2010, involved in active business operations and instead sought to engage in the exchange of real estate properties between individuals through the use of Section 1031 of the Internal Revenue Code. The Company's name was Across America Real Estate Exchange until May 11, 2010, when it was changed to Accredited Members Holding Corporation. The Company currently provides various services and products both directly and through its subsidiary corporations Accredited Members, Inc. ("AMI"), AMHC Managed Services and World Wide Premium Packers, Inc. ("WWPP"). AMI offers a range of free and paid subscription services to individual investors who purchase memberships to the Company, as well as to companies that pay AMI to participate in its services and programs aimed to help those companies improve their investment relations and increase their market exposure. World Wide Premium Packers, Inc., engages in processing and distribution of meat products. AMHC Managed Services provides management services to third parties, including services typically provided by executive level personnel on a fixed-contract basis. ALEXIS BELLINO: Threatens to Sue Mag Over Bankruptcy Report ----------------------------------------------------------- Reality Tea reports that Real Housewives of Orange County star Alexis Bellino is threatening to sue In Touch Weekly magazine after it branded her as being broke and "bankrupt" on the cover of a recent issue. Reality Tea, citing TMZ, said an article in the mag read, "Bankrupt! Evicted! Foreclosed! Housewives Are Going Broke." The article continued, "After selling off her home at a fraction of its cost to avoid foreclosure, Alexis Bellino still refuses to admit she and her husband . . . . have money troubles." TMZ said Ms. Bellino's lawyer has sent a cease and desist letter to the mag demanding In Touch retract its "patent, malicious, and libelous comments." TMZ added that In Touch has yet to respond to the letter. The Bellinos were facing foreclosure of their 6,400-square foot, 6-bedroom home in Newport Beach earlier this year but the bank lender, JPMorgan Chase, decided to cancel the auction scheduled for Feb. 10, 2011. Reality Tea notes Jim Bellino also placed one of his businesses in Chapter 11 bankruptcy. ALLIED DEFENSE: Deregisters Unsold Securities --------------------------------------------- The Allied Defense Group, Inc., filed with the U.S. Securities and Exchange Commission a Post-Effective Amendment No. 1 to its Registration Statement on Form S-3 filed on Dec. 4, 2002, as amended on Feb. 7, 2003, relating to the resale of up to 999,959 shares of the Company's common stock issued in connection with two acquisition transactions and issuable upon conversion of a convertible debenture and exercise of a stock purchase warrant. The Company amended the Registration Statement to deregister all securities registered but remained unsold, if any, under the Registration Statement and to terminate the effectiveness of the Registration Statement. The Company also filed Post-Effective Amendment No. 1 to these Form S-8 registration statements: (a) 225,000 shares of the Company's common stock for issuance under the Allied Research Corporation 1997 Incentive Stock Plan, filed with the SEC on March 20, 1998 to; (b) 240,000 shares of the Company's common stock for issuance under the Allied Research Corporation 2001 Equity Incentive Plan filed with the SEC on June 27, 2001; and (c) 500,000 shares of the Company's common stock for issuance under the 2001 Equity Incentive Plan, filed with the SEC on on June 20, 2003. The Company filed the amendment to deregister all securities registered but remained unsold and to terminate effectiveness of these Registration Statements. About The Allied Defense Group Vienna, Va.-based The Allied Defense Group, Inc. (OTCQB: ADGI) -- http://www.allieddefensegroup.com/-- is a multinational defense business focused on the manufacture and sale of ammunition and ammunition related products for use by the U.S. and foreign governments. Allied's business is conducted by its two wholly owned subsidiaries: Mecar S.A. ("Mecar") and Mecar USA, Inc. ("Mecar USA"). Mecar is located in Nivelles, Belgium and Mecar USA is located in Marshall, Texas. Corporate is located in Vienna, Virginia. The Company received a subpoena from the U.S. Department of Justice on Jan. 19, 2010, requesting that the Company produce documents relating to its dealings with foreign governments. The Company said it is unlikely that any distributions to stockholders will be made until the matters relating to the DOJ subpoena have been resolved. The period of time required to resolve these matters is expected to take in excess of one year. The Company's balance sheet at June 30, 2011, showed $48.22 million in total assets, $3.78 million in total liabilities, and $44.44 million in net assets in liquidation. Plan of Dissolution and Liquidation On June 24, 2010, the Company signed a definitive purchase and sale agreement with Chemring Group PLC pursuant to which Chemring agreed to acquire substantially all of the assets of the Company for $59,560 in cash and the assumption of certain liabilities. On Sept. 1, 2010, the Company completed the asset sale to Chemring contemplated by the Agreement. Pursuant to the Agreement, Chemring acquired all of the capital stock of Mecar for approximately $45,810 in cash, and separately Chemring acquired substantially all of the assets of Mecar USA for $13,750 in cash and the assumption by Chemring of certain specified liabilities of Mecar USA. A portion of the purchase price was paid through the repayment of certain intercompany indebtedness owed to the Company that would otherwise have been cancelled at closing. $15,000 of the proceeds from the sale was deposited into escrow to secure the Company's indemnification obligations under the Agreement. The $15,000 of cash plus earned interest income remains in escrow as of March 31, 2011. In conjunction with the Agreement, the Board of Directors of the Company unanimously approved the dissolution of the Company pursuant to a Plan of Complete Liquidation and Dissolution. The Company's stockholders approved the Plan of Dissolution on Sept. 30, 2010. In response to concerns of certain of the Company's stockholders, the Company has agreed to delay the filing of a certificate of dissolution with the Delaware Secretary of State so that the stockholders may continue to transfer the Company's common stock while the Company resolves the matters relating to the U.S. Department of Justice subpoena. The Company will delay the filing of a certificate of dissolution with the Delaware Secretary of State until the earlier of Aug. 31, 2011, or a resolution of all matters concerning the DOJ. On Sept. 2, 2010, the Company received a staff determination letter from NYSE Amex LLC. The Staff Determination stated that the Exchange determined that the Company no longer complies with the requirements for continued listing set forth in NYSE Amex LLC Company Guide Section 1003(c)(i) as a result of the sale of substantially all of the Company's assets. On Sept. 20, 2010, the Company announced that trading of shares of the Company's common stock had been transferred from the NYSE Amex to the OTCQBTM Marketplace effective Monday, Sept. 20, 2010. The Company's trading symbol is now ADGI. AMR CORP: Ticonderoga Analyst Revises Rating to "Neutral" --------------------------------------------------------- Avi Salzman at BARRON'S reports that Ticonderoga Securities analyst James Higgins raised his rating on AMR, the parent company of American Airlines, to "Neutral" from "Sell" as he believes the stock is unlikely to fall much farther. AMR stock is down below $4 and a bigger drop would presage talk of Chapter 11 bankruptcy, which Mr. Higgins thinks is unlikely. "In our view, there are far better opportunities in this beaten- down group, but with ample cash and a scant $1.1 billion in equity market value representing only 6% of adjusted enterprise value, we believe the reward/risk outlook for the shares is close to even." Mr. Higgins also thinks AMR's decision to buy 460 new Boeing 737 planes is a good one because it will make the fleet much more fuel efficient and lead to lower maintenance costs. To be sure, AMR is not an overlooked gem -- the Company's results have been just short of abysmal lately. Also, AMR has much higher labor costs than other airlines and will probably grow capacity in coming months while other airlines cut capacity, Mr. Higgins writes. "Yet, the stock has been by far the weakest performer in the group (which is indeed saying something) having fallen 58% so far this year versus a 32% drop in the Amex Airline Index and mere 6% lower S&P 500. We believe there is a price for everything and, absent insolvency, view AMR shares at about $3 as having reached valuational equilibrium." The Aug. 29 report notes shares rose 7.4% to $3.50. About AMR Corporation Headquartered in Fort Worth, Texas, AMR Corporation (NYSE: AMR) operates with its principal subsidiary, American Airlines Inc. -- http://www.aa.com/-- a worldwide scheduled passenger airline. As of Dec. 31, 2009, American provided scheduled jet service to approximately 160 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two regional airlines, American Eagle Airlines Inc. and Executive Airlines Inc., and does business as "American Eagle." American Beacon Advisors Inc., a wholly owned subsidiary of AMR, is responsible for the investment and oversight of assets of AMR's U.S. employee benefit plans, as well as AMR's short-term investments. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. The Company also reported a net loss of $722 million for the six months ended June 30, 2011. The Company's balance sheet at June 30, 2011, showed $25.78 billion in total assets, $30.29 billion in total liabilities, and a $4.51 billion stockholders' deficit. * * * AMR carries a 'CCC' issuer default rating from Fitch Ratings, 'Caa1' corporate family and probability of default ratings from Moody's, and a 'B-' corporate credit rating from Standard & Poor's. In November 2010, Standard & Poor's Ratings Services revised its outlook on AMR Corp. and its major operating subsidiary, American Airlines Inc., to stable from negative, based on AMR's improved operating performance, which has bolstered credit quality. S&P also affirmed its 'B-' corporate credit rating and most issue ratings on the two companies and lowered selected ratings on American's enhanced equipment trust certificates. AMTRUST FINANCIAL: Bancorp Asks Court to Reject Plan Disclosures ---------------------------------------------------------------- The Bancorp Bank, an online bank holding $2.3 million in AmFin Financial Corp. securities, is urging the bankruptcy court to reject the latest disclosure statement explaining AmFin's Chapter 11 plan. Bancorp Bank, according to Law360, renewed objections it raised to AmFin's previous disclosure statement and said the latest version did nothing to remedy sweeping releases in the Chapter 11 plan that would extinguish potential claims against insiders and executives who allegedly lied about its risky lending practices. According to BankruptcyData.com, the objection asserts, "Bancorp believes that the Debtors and their insiders/and or agents, including certain officers and directors, caused AmTrust Bank to make a large volume of extremely high risk, no-documentation loans known as Alt-A loans (often referred to as 'liar loans'). Bancorp believes the Debtors and their principals and/or their insiders and agents, including certain officers and directors, knowingly and/or recklessly failed to disclose material facts regarding, among other things, the riskiness of the Alt-A loans, the inadequacy of AmTrust Bank's loss reserves and the consequent undercapitalization of AmTrust Bank, thereby misleading investors, including Bancorp, which acquired and held securities on the basis of false and misleading information." About AmTrust Financial AmFin Financial Corporation, formerly AmTrust Financial Corporation, (PINK: AFNL) was the owner of the AmTrust Bank. AmTrust was the seventh-largest holder of deposits in South Florida, with $4.7 billion in deposits and 21 branches. In November 2008, the Office of Thrift Supervision issued a cease and desist order requiring AmTrust to improve its capital ratios. AmTrust Financial, together with affiliates that include AmTrust Management Inc., filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ohio Case No. 09-21323) on Nov. 30, 2009. The debtor subsidiaries include AmFin Real Estate Investments, Inc., formerly AmTrust Real Estate Investments, Inc. (Case No. 09-21328). G. Christopher Meyer, Esq., Christine M. Piepont, Esq., and Sherri L. Dahl, Esq., at Squire Sanders & Dempsey (US) LLP, in Cleveland, Ohio; and Stephen D. Lerner, Esq., at Squire Sanders & Dempsey (US) LLP, in Cincinnati, Ohio, serve as counsel to the Debtors. Kurtzman Carson Consultants serves as claims and notice agent. Attorneys at Hahn Loeser & Parks LLP serve as counsel to the Official Committee of Unsecured Creditors. AmTrust Management estimated $100 million to $500 million in assets and liabilities in its Chapter 11 petition. AmTrust Bank was not part of the Chapter 11 filings. On Dec. 4, 2009, AmTrust Bank was closed by regulators and the Federal Deposit Insurance Corporation was named receiver. New York Community Bank, in Westbury, New York, assumed all of the deposits of AmTrust Bank pursuant to a deal with the FDIC. ANCHOR BANCORP: Extends CRO's Employment for 1 Year --------------------------------------------------- Anchor Bank fsb renewed its employment agreement with Martha Hayes for an additional one-year period through July 31, 2012. The other terms and conditions of the employment agreement remain unchanged. Under the terms of the employment agreement, Ms. Hayes serves the Bank as its Chief Risk Officer, reporting directly to the Bank's President and Chief Executive Officer. Her salary is $432,000 per year, and she is entitled to the benefits provided to employees with a similar job title and job classification and is eligible to receive those other benefits including stock options and restricted stock as is authorized and approved by the Board. If Ms. Hayes voluntarily resigns, she is required to provide the Bank with 30 days advance written notice. If she resigns or is terminated for any reason, her salary may be continued for a period of up to an additional 30 days if during that period she assists the Bank in the winding up and transitioning of her duties. About Anchor Bancorp Madison, Wisconsin-based Anchor BanCorp Wisconsin Inc. is a registered savings and loan holding company incorporated under the laws of the State of Wisconsin. The Company is engaged in the savings and loan business through its wholly owned banking subsidiary, AnchorBank, fsb. The Company's balance sheet at June 30, 2011, showed $3.24 billion in total assets, $3.24 billion in total liabilities, and $4.99 million of stockholders' equity. Anchor BanCorp and its wholly-owned subsidiaries, AnchorBank fsb, each consented to the issuance of an Order to Cease and Desist by the Office of Thrift Supervision. The Corporation and the Bank continue to diligently work with their financial and professional advisors in seeking qualified sources of outside capital, and in achieving compliance with the requirements of the Orders. The Corporation and the Bank continue to consult with the successors to the OTS, Federal Reserve, the the Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation on a regular basis concerning the Corporation's and Bank's proposals to obtain outside capital and to develop action plans that will be acceptable to federal regulatory authorities, but there can be no assurance that these actions will be successful, or that even if one or more of the Corporation's and Banks proposals are accepted by the Federal regulators, that these' proposals will be successfully implemented. While the Corporation's management continues to exert maximum effort to attract new capital, significant operating losses in fiscal 2009, 2010 and 2011, significant levels of criticized assets and low levels of capital raise substantial doubt as to the Corporation's ability to continue as a going concern. If the Corporation and Bank are unable to achieve compliance with the requirements of the Orders, or implement an acceptable capital restoration plan, and if the Corporation and Bank cannot otherwise comply with those commitments and regulations, the OCC or FDIC could force a sale, liquidation or federal conservatorship or receivership of the Bank. As reported by the TCR on July 5, 2011, McGladrey & Pullen, LLP, in Madison, Wisconsin, expressed substantial doubt about Anchor Bancorp Wisconsin's ability to continue as a going concern after auditing the Company's financial results for fiscal year ended March 31, 2011. The independent auditors noted that at March 31, 2011, all of the subsidiary bank's regulatory capital amounts and ratios are below the capital levels required by the consent order. "The subsidiary bank has also suffered recurring losses from operations. Failure to meet the capital requirements exposes the Corporation to regulatory sanctions that may include restrictions on operations and growth, mandatory asset dispositions, and seizure of the subsidiary bank." AQUILEX HOLDINGS: Posts $837,000 Net Loss in 2nd Quarter -------------------------------------------------------- Aquilex Holdings LLC filed its quarterly report on Form 10-Q, reporting a net loss of $837,000 on $117.1 million of revenues for the three months ended June 30, 2011, compared with a net loss of $12.6 million on $105.7 million of revenues for the same period last year. The Company reported a net loss of $13.9 million on $226.6 million of revenues for the six months ended June 30, 2011, compared with a net loss of $25.1 million on $213.3 million of revenues for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $670.5 million in total assets, $490.9 million in total liabilities, and stockholders' equity of $179.6 million. The Company's Credit Agreement requires it to maintain certain financial ratios, including a minimum ratio of Adjusted EBITDA to total interest expense and maximum ratios of total debt and senior secured debt to Adjusted EBITDA. "While the Company was in compliance with its debt covenants as of June 30, 2011, based on current business conditions and forecast, there can be no assurance that the Company will be in compliance with those covenants as of Sept. 30, 2011, or thereafter," the Company said in the filing. "The Company expects to approach the lenders under its Credit Agreement to seek a waiver of compliance with its financial covenants for the twelve months ended Sept. 30, 2011, and it may be required to seek additional waivers or a forbearance or amendment. There can be no certainty that any such waiver, amendment or forbearance will be forthcoming." "The Company's principal shareholder is also entitled to exercise an equity cure right under the Credit Agreement to address certain financial covenant breaches, although it is uncertain if the Company's principal shareholder would exercise an equity cure right." "If the Company does not meet its financial covenants and is unable to obtain a waiver, amendment or forbearance, and if no equity cure right is available and exercised, there would be an event of default under its Credit Agreement which would allow its lenders to accelerate the amounts it owes under the Credit Agreement or avail themselves of other remedies under the Credit Agreement, including foreclosure on the collateral securing its debt. An acceleration of its Credit Facility debt also would cause an event of default under, and permit acceleration of, the Company's senior notes. Any failure to meet debt service or any breach of its debt covenants would likely have a material adverse effect on the Company's financial condition." The Company says the foregoing would raise substantial doubt about its ability to continue as a going concern. A copy of the Form 10-Q is available at http://is.gd/c75YHU Aquilex Holdings LLC is the parent of Aquilex Corporation, a leading provider of critical maintenance, repair and industrial cleaning solutions to the energy industry. Through our divisional and branch offices in the United States and Europe, we provide our services to a diverse global base of over 600 customers, primarily in the oil and gas refining, chemical and petrochemical production, fossil and nuclear power generation and waste-to- energy industries. AQUILEX HOLDINGS: Cut by Moody's to 'Caa2' on Low Income -------------------------------------------------------- Moody's Investors Service has lowered the ratings of Aquilex Holdings, LLC, including the corporate family to Caa2 from B3. The rating outlook remains negative. RATINGS RATIONALE The downgrade considers the company's low operating income and weakening liquidity profile. During 2011 a cash operating deficit developed because of persistent operating inefficiencies and because a key foreign customer, who owes more than $10 million, began slowing payments. Aquilex currently holds about $35 million in cash but its revolving credit line is fully drawn and the cash on hand may not sufficiently cover seasonal working capital needs that typically rise in the October-November period, when energy customers routinely buy maintenance services from Aquilex. Beyond a near-term cash shortfall risk, an extended period of financial ratio covenant relief will probably also be required. Continuing economic softness, competition and cost management problems are depressing earnings and making compliance with the first-lien credit facility's scheduled financial ratio covenant tests doubtful. A first-time speculative grade liquidity rating of SGL- 4, denoting the weak liquidity profile, has been assigned. The rating outlook remains negative because a sluggish economy will probably continue limiting overall industrial maintenance and plant improvement volumes that drive Aquilex's revenues. Although a business restructuring effort within Aquilex's Industrial Cleaning Services segment is underway, the effort seems ill-timed and Moody's expects that lower margin levels demonstrated in H1- 2011 will probably continue into 2012. Without earnings growth the capital structure could become untenable despite low debt maturities scheduled near term. Should the liquidity situation not soon improve the ratings may further decline. Outlook stabilization would depend on stabilization of the liquidity outlook, including expectation of ongoing covenant compliance. Higher ratings would additionally require higher earnings with operating profit margin above 7%, debt to EBITDA falling below 6x, and EBIT to interest approaching 1x; a development that Moody's considers unlikely in the near term. Rating actions: Corporate family, lowered to Caa2 from B3 Probability of default, lowered to Caa2 from B3 $50 million gtd first-lien revolver due April 2015, lowered to B3 LGD3, 31% from Ba3 LGD2, 19% $163 million gtd first-lien term loan due April 2016, lowered to B3 LGD3, 31% from Ba3 LGD2, 19% $225 million gtd 11.125% senior unsecured notes due December 2016, lowered to Caa3 LGD5, 84% from Caa1 LGD5, 75% Speculative grade liquidity, assigned SGL-4 Outlook, negative The principal methodology used in rating Aquilex Holdings, LLC was the Global Business & Consumer Service Industry Rating Methodology published in October 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies. Aquilex Holdings, LLC, headquartered in Atlanta, Georgia, is a provider of service, repair and overhaul services, and industrial cleaning services to the energy and power generation sectors. Revenues for the last twelve months ended June 30, 2011 were approximately $475 million. ARCADIA RESOURCES: Voluntarily Delists Common Shares from NYSE -------------------------------------------------------------- Arcadia Resources, Inc., notified the U.S. Securities and Exchange Commission regarding the voluntary removal of its common stock under the NYSE Amex. About Arcadia HealthCare Arcadia HealthCare is a service mark of Arcadia Resources, Inc. (nyse amex:KAD), and is a leading provider of home care, medical staffing and pharmacy services under its proprietary DailyMed program. The Company, headquartered in Indianapolis, Indiana, has 65 locations in 18 states. Arcadia HealthCare's comprehensive solutions and business strategies support the Company's vision of "Keeping People at Home and Healthier Longer." The Company's balance sheet at June 30, 2011, showed $25.85 million in total assets, $48.57 million in total liabilities, and a $22.72 million total stockholders' deficit. The Company reported a net loss of $14.35 million on $100.04 million of revenues for the fiscal year ended March 31, 2011, compared with a net loss of $31.09 million on $98.08 million of revenues for the fiscal year ended March 31, 2010. BDO USA, LLP, in Troy, Michigan, expressed substantial doubt about Arcadia Resources' 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. ARCHBROOK LAGUNA: Court Authorizes Loughlin as Committee Advisor ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York has authorized the Official Committee of Unsecured Creditors of ArchBrook Laguna Holdings LLC and its debtor-affiliates to retain Loughlin Meghji + Company as its financial advisor to assist and advise the Committee in the analysis of the current financial position of the Debtors. The Debtors' estates will pay ArchBrook Laguna based on the firm's hourly rates: Classification Standard Hourly Rates -------------- --------------------- Principal/Managing Director $695-$795 Director $550-$650 Vice President $475 Senior Associate $425 Associate $375 Analyst $300 Paraprofessional $150 About ArchBrook Laguna ArchBrook was a procurement and distribution intermediary between production companies and end retailers. It distributed consumer electronics, computers and appliances to principal customers that include Wal-Mart Stores Inc., Best Buy Co. and Costco Wholesale Corp. ArchBrook disclosed assets of $246.2 million against debt totaling $176.4 million as of March 31, 2011. ArchBrook Laguna Holdings LLC and certain of its affiliates filed voluntary petitions for reorganization under chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 11-13292) on July 8, 2011. Ira S. Dizengoff, Esq., Michael P. Cooley, Esq., and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, serve as bankruptcy counsel to ArchBrook Laguna. The Company is being advised by Macquarie Capital (USA) Inc. with respect to the sale process and by Hawkwood Consulting LLC, whose founder Stephen J. Gawrylewski is Chief Restructuring Officer of the Company. Macquarie Capital (USA) Inc. is the financial advisor. PricewaterhouseCoopers LLP is a consultant. Cooley LLP, in New York, is the counsel for the Official Committee of Unsecured Creditors. In August 2011, ArchBrook Laguna LLC won approval to sell its consumer electronics and appliances distribution business to Gordon Brothers Group LLC for some $25 million, after fielding offers at an auction. ARCHBROOK LAGUNA: Committee Retains Cooley LLP as Counsel --------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York has authorized the Official Committee of Unsecured Creditors of ArchBrook Laguna Holdings LLC and its debtor-affiliates to retain Cooley LLP as its counsel. As the Committee's counsel, Cooley will: a) attend the meetings of the Committee; b) review financial information furnished by the Debtors to the Committee; c) negotiate the budget and the use of cash collateral and DIP financing; d) review and investigate the liens of purported secured parties; and e) confer with the Debtors. The Debtors' estates will pay Cooley LLP based on an hourly basis according to these rates: Professional Designation Hourly Rate ------------ ----------- ----------- Lawrence C. Gottlieb Partner $955 Cathy R. Hershcopf Partner $765 Jeffrey L. Cohen Partner $630 Alex R. Velinsky Associate $375 Dana S. Katz Associate $375 Rebecca Goldstein Paralegal $245 About ArchBrook Laguna ArchBrook was a procurement and distribution intermediary between production companies and end retailers. It distributed consumer electronics, computers and appliances to principal customers that include Wal-Mart Stores Inc., Best Buy Co. and Costco Wholesale Corp. ArchBrook disclosed assets of $246.2 million against debt totaling $176.4 million as of March 31, 2011. ArchBrook Laguna Holdings LLC and certain of its affiliates filed voluntary petitions for reorganization under chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 11-13292) on July 8, 2011. Ira S. Dizengoff, Esq., Michael P. Cooley, Esq., and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, serve as bankruptcy counsel to ArchBrook Laguna. The Company is being advised by Macquarie Capital (USA) Inc. with respect to the sale process and by Hawkwood Consulting LLC, whose founder Stephen J. Gawrylewski is Chief Restructuring Officer of the Company. Macquarie Capital (USA) Inc. is the financial advisor. PricewaterhouseCoopers LLP is a consultant. Loughlin Meghji + Company is the Creditors Committee's financial advisor. In August 2011, ArchBrook Laguna LLC won approval to sell its consumer electronics and appliances distribution business to Gordon Brothers Group LLC for some $25 million, after fielding offers at an auction. ARK DEVELOPMENT: Creditor BB&T Wants Disclosure Statement Denied ---------------------------------------------------------------- Branch Banking and Trust Company, asks the U.S. Bankruptcy Court for the Southern District of Florida to deny the Disclosure Statement explaining Ark Development/Oceanview, LLC's Chapter 11 Plan, and dismiss its bankruptcy case. BB&T is a North Carolina banking corporation, as successor-in- interest to Colonial Bank by asset acquisition from the FDIC as receiver for Colonial Bank. According to BB&T, the approval of the Disclosure Statement will only harm the estate and its creditors, because the approval will be followed by a time-consuming and expensive solicitation process and confirmation hearings. The expense will be borne by the creditors and not those who stand to benefit the most from the Plan as proposed. BB&T notes that the Disclosure Statement, among other things: -- lack adequate information required by section 1125 of the Bankruptcy Code; and -- describes a Reorganization Plan that is not confirmable. The Plan As reported in the Troubled Company Reporter on July 28, 2011, the Plan designates six Classes of Claims and one Class of Interests: Class 1. Allowed Secured Claim of Broward County Revenue Collector Class 2. Allowed Secured Claim of RADC/CADC. Class 3. Allowed Secured Claim of BB&T Class 4. Allowed Secured Claim of Northern Trust Class 5. Allowed Secured Claims of the Mechanic Lienholders Class 6. Allowed General Unsecured Claims Class 7. Allowed Equity Interests. All Classes are Impaired under the Plan. Class 1 Claimholders will receive equal monthly payments, of principal and interest, commencing on the Effective Date, with interest at 5% per annum, over a period not to exceed five years. RADC/CADC, which holds the first position mortgage on the 1423 Property, and is owed $3,150,000, will be paid monthly interest only payments on the 20th of each month at a rate of one (1) percentage point over the prime rate (i.e., monthly payment of $11,156.25), over a period of 60 months. RADC/CADC will receive a balloon payment of $3,150,000 at the end of the 60-month period, or the Debtor will abandon the property to the lender or consent to the entry of a foreclosure judgment in favor of the lender. BB&T, which holds the first position mortgage on the 1427 Property, and is owed approximately $3,300,000, will be paid monthly interest only payments on the 20th of each month at a rate of one percentage point over the prime rate (i.e., monthly payment of $11,687), over a period of 24 months. Thereafter, BB&T will be paid principal and interest monthly payments for the following 36 months, amortized over 25 years at a rate of one percentage point over prime (i.e, monthly payment of $17,877). BB&T will receive a balloon payment of approximately $2,887,009 at the end of the 60 month period, or the Debtor will abandon the property to the lender or consent to the entry of a foreclosure judgment in favor of the lender. Northern Trust which holds the mortgage on the 1431 Property, and is owed approximately $3,018,347, plus a per diem of $594 thereafter, plus reasonable costs and attorneys' fees, has agreed to vote in favor of the Plan filed by the Debtor so long as the treatment of Northern Trust's Secured Claim is consistent with the terms of the stipulation between the Debtor and Northern Trust resolving their disputes regarding the debt owed to Northern Trust. Under the Agreement, the Debtor will remain in possession and control of the 1431 Property for six months from the date of the final order approving the Agreement. Prior to the expiration of the six months period, the Debtor will use its best efforts to effectuate a sale of the 1431 Property. Until such time as the 1431 Property is sold, the Debtor will make adequate protection payments to Northern Trust on a monthly basis in the amount of $15,932 each, commencing on Aug. 1, 2011, until the sale of the 1431 Property. Mechanic Lienholders, owed approximately $230,094 in the aggregate, will, in full satisfaction of their respective Allowed Claims, receive a pro rata Distribution of $25,000, excluding interest, paid in quarterly payments over a period of three years, commencing 90 days of the Effective Date and will receive interest on the amount of their Distribution at 2.5%. Allowed General Unsecured Claims in Class 6 will, in full satisfaction of their respective Allowed Claims, receive a pro rata Distribution of $25,000, excluding interest, paid in quarterly payments over a period of three years, commencing 90 days of the Effective Date and will receive interest on the amount of their Distribution at 2.5%. Other than retaining their Equity Interests in the Debtor, the holders of Allowed Equity Interests in Class 7 will not be entitled to receive any Distribution under the Plan on account of such Equity Interests. In exchange for agreeing to waive the amounts owed to Joseph Kodsi and for financing the payments under the Plan, Joseph Kodsi will continue to own 50% of the Reorganized Debtor and Isaac Kodsi will continue to own 50% of the Reorganized Debtor. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/arkdevelopment.DS.pdf BB&T is represented by: W. Glenn Jensen, Esq. Alan J. Perlman, Esq. David J. Lienhart, Esq. ROETZEL & ANDRESS 420 South Orange Avenue CNL II, 7th Floor Orlando, FL 32801 Tel: (407) 896-2224 Fax: (407) 835-3596 E-mail: gjensen@ralaw.com aperlman@ralaw.com dlienhart@ralaw.com 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. The Debtor disclosed $12,017,522 in assets and $11,794,591 in liabilities as of the Chapter 11 filing. The U.S. Trustee said it will not appoint at this time a committee of creditors for the Debtor's case. ARK DEVELOPMENT: Creditor to Foreclose, Seeks Dismissal Order ------------------------------------------------------------- Northern Trust N.A., a creditor in the Chapter 11 case of Ark Development/Oceanview, LLC, asks the U.S. Bankruptcy Court for the Southern District of Florida to: a) grant Northern relief from any stay, including but not limited to the stay otherwise applicable under Sec. 105 and 362 of the Bankruptcy Code, in order that Northern may foreclose on and cause the property to be sold pursuant to a Court order, and to take any other actions necessary or appropriate under the loan documents; b) require the Debtor to abandon the collateral peacefully to Northern within five days of the entry of the order; and c) confirm the dismissal of the case and the abstention by the Court as to the property. Northern notes that to date, Northern has not received the adequate protection payment of $15,931, and therefore the default was not timely cured. As reported in the Troubled Company Reporter on July 29, 2011, the Debtor and Northern entered into an agreement, granting adequate protection, relief from stay, abstention and dismissal of case. Northern Trust holds valid and perfected security interests and secured claims. As of April 22, 2011, Northern Trust holds a claim in the amount of $3,018,346 plus a per diem of $594 thereafter, plus reasonable costs and attorneys' fees. Among other things, the settlement provides for: a. Except for sales rendered in the ordinary course of its business, and except as otherwise provided herein, the Debtor will not sell, transfer, lease, encumber or otherwise dispose of the property without the prior written consent of Northern Trust, which will not be unreasonably withheld, and no such consent will ever be implied from any other action, inaction or acquiescence by Northern Trust, unless the sale, transfer, lease, encumbrance or other disposition is approved by the Court. b. The Debtor will timely serve upon Northern Trust all pleadings and other documents filed in this Chapter 11 case, including monthly financial reports required by the United States Trustee's office, and will continue to supply to Northern Trust such reports as requested by Northern Trust. c. Northern Trust will have the right to inspect the Property from time to time using its designated engineer, architect or other construction consultants to ascertain that the budget appears to be adequate to complete the punch-list work and cleaning at the Property and Debtor will grant access to the property to Northern Trust and its designees upon reasonable advance notice of not more than 5 calendar days. 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. The Debtor disclosed $12,017,522 in assets and $11,794,591 in liabilities as of the Chapter 11 filing. The U.S. Trustee said it will not appoint at this time a committee of creditors for the Debtor's case. BANK OF AMERICA: U.S. Bank Sues Over Soured Countrywide Loans ------------------------------------------------------------- Ruth Simon, writing for The Wall Street Journal, reports that the U.S. Bank unit of U.S. Bancorp on Tuesday filed a lawsuit in New York State Supreme Court against Bank of America Corp. to force BofA to repurchase all the loans in a $1.75 billion mortgage bond deal sold six years ago. U.S. Bank's suit -- filed on behalf of bond investors -- said the loans involving by Countrywide Financial Corp. "began to become delinquent and default at a startling rate" soon after they were sold. The lawsuit alleges that there was a "systemic failure" by Countrywide to comply with underwriting guidelines and representations made to investors. The suit said the investors face "irreparable harm" if BofA doesn't repurchase the loans. BofA acquired Countrywide in 2008. The Journal relates the bond deal at issue in the U.S. Bank lawsuit, HarborView Mortgage Loan Trust, Series 2005-10, originally had 4,484 loans. Forty-six percent of the 2,084 mortgages still in the pool have defaulted or were at least 60 days past due as of June 20, 2011, according to the lawsuit. According to the Journal, the deal was packaged by Greenwich Capital Financial Products, an affiliate of Royal Bank of Scotland Group PLC. The deal is one of a number involving Countrywide loans that isn't covered by the proposed settlement with bond investors and could be the subject of future actions, people familiar with the matter say. An RBS spokeswoman declined to comment. The Journal relates a spokesman for U.S. Bancorp said the bank "filed the lawsuit in its role as trustee for the bond deal at the direction of investors in the trust," but declined to comment further because of the pending litigation. The Journal also says a Bank of America spokesman said that, while the bank is still reviewing the complaint, it doesn't believe "existing contractual documents give U.S. Bank any right to demand . . . the repurchase [of] loans on a pool-wide basis, nor do we believe there is any basis in fact to demand a repurchase of every loan in this securitization, the majority of which have either paid off or are current." The Journal recounts that BofA in June agreed to pay $8.5 billion to settle claims brought by a group of high-profile investors, including money-manager BlackRock Inc. and insurer MetLife Inc., that lost money on soured Countrywide bonds for which Bank of New York Mellon Corp. was the trustee. Attorneys general in New York and Delaware and dozens of bond investors, including hedge funds, banks, pension funds and insurers, have filed objections to the settlement, or in many cases have told the court they need more information to evaluate the proposed deal. More than 20 filings were made on Tuesday as a flurry of investors, including the Federal Housing Finance Agency, the federal regulator overseeing the government-backed mortgage investors Fannie Mae and Freddie Mac, filed to intervene before the Aug. 30 deadline for investors covered by that settlement to file objections to the deal. The Journal notes the settlement, which is a key part of Bank of America's attempt to put Countrywide's problems behind it, can't proceed until a court rules on the objections. Before that happens, a judge must decide which court will handle the case, which objectors will be allowed to intervene and the scope of discovery. The settlement was reported in the July 1, 2011 edition of the Troubled Company Reporter. The Journal also reports that a judge has dismissed two lawsuits against BofA over about $1.7 billion in notes held by BNP Paribas SA and Deutsche Bank AG. The notes were issued by Ocala Funding, a special-purpose entity that provided short-term liquidity funding to Taylor, Bean & Whitaker Mortgage Corp., which filed for bankruptcy protection in August 2009. BofA was the agent and trustee for the notes. The two banks could sue again if they want, within the month. About Bank of America Based in Charlotte, North Carolina, Bank of America -- http://www.bankofamerica.com/-- is one of the world's largest financial institutions. The Company serves more than 59 million consumer and small business relationships with more than 6,100 retail banking offices, nearly 18,700 ATMs and online banking with nearly 29 million active users. Following the acquisition of Merrill Lynch in January 2009, BofA is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes serving corporations, governments, institutions and individuals around the world. Bank of America offers support to more than 4 million small business owners. The Company serves clients in more than 150 countries. Bank of America Corporation stock is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange. BofA sought government backing in completing its acquisition of Merrill Lynch. Merrill Lynch & Co. Inc. -- http://www.ml.com/-- is a wealth management, capital markets and advisory companies with offices in 40 countries and territories. During the economic collapse in 2008, BofA received US$45 billion in government bailout. On June 17, 2011, 34 individuals sought to place Bank of America N.A. in bankruptcy by filing an involuntary Chapter 11 petition (Bankr. D. Colo. Case No. 11-24503). The petitioners claimed to be owed roughly $60 million in the aggregate. The petitioners identified themselves in the signature pages of the Chapter 11 petition as members of either the "Independent Rights Political Party" or the "Independent Rights Party." The petition was dismissed later that month. BANNING LEWIS: Decision on Sale to Ultra Postponed to Sept. 13 -------------------------------------------------------------- The Gazette reports that a bankruptcy court's decision on whether Houston-based Ultra Resources can buy the majority of the massive Banning Lewis Ranch in Colorado Springs -- where it wants to drill for oil and gas -- has been postponed until Sept. 13, 2011. According to the report, city of Colorado Springs and company officials, meanwhile, said Friday they continue to negotiate a settlement over disputed land-use issues related to Ultra's purchase. In a court filing last week, Ultra said its purchase of the property was "at risk" if a deal was delayed. On Friday, Whitley said that stance has changed, and the company supports the postponement. The report notes Ultra's proposed purchase of 18,000 acres of the 21,500-acre ranch, and its desire to drill on the property, have emerged as critical issues growing out of an October 2010 Chapter 11 bankruptcy filing in Delaware by the California-based owners of the Banning Lewis Ranch. Because of its size, the ranch holds the key to decades of city residential and commercial growth. Colorado Springs annexed the property in 1988, but it's gone mostly undeveloped after a series of ownership changes. The Gazette says, as part of the current owners' bankruptcy, the ranch was auctioned in June. Ultra submitted a winning bid of $26.3 million for the lion's share of the ranch and announced it wanted to drill for oil and gas on the property. The company now awaits the bankruptcy judge's approval of its purchase. The Company has asked the judge to set aside an annexation agreement and other land-used controls that were put in place to govern the property's development; those controls are outdated and would pose a burden on Ultra's operations, the company has argued. City officials have countered in court filings that the controls are needed to ensure the orderly development of the ranch and surrounding property. Kelly said Friday it's her understanding the bankruptcy judge will not issue an order on Ultra's purchase until the city and company settle their disagreements. Ms. Kelly said she hopes an agreement with Ultra will mirror the one the city reached with KeyBank National Association. KeyBank was a lender on the ranch, and was the winning bidder on a second, 2,400-acre parcel that makes up the far northern portion of the ranch. As part of its purchase, which the bankruptcy judge approved in a hearing Wednesday, KeyBank agreed to have the annexation agreement and other land-use controls apply to its property. KeyBank bid $24.5 million, which will be credited against the $65 million it's owed by the ranch's owners. It plans to sell the land. 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. SUMMIT BRANTLEY: Fails to Comply With Plan, Says U.S. Trustee ------------------------------------------------------------- Lauren Foreman at the Jackson Sun reports that Jessamy Thomison, the attorney representing the U.S. trustee for the Western District of Tennessee, accuses Summit Brantley Building Innovations of not complying with an approved plan to pay some of the Company's creditors. According to the report, the motion lists about six plan violations that include failure to pay the approximately $75,000 to priority unsecured creditors and failure to pay quarterly fees owed to the U.S. trustee by Wednesday. "The Debtor's MORs (monthly operating reports) from November 2010 through June 2011 evidence that no payment has ever been received by the Debtor from the Brantley Group, LLC," Ms. Foreman says, citing papers filed with the Court. It says $3,201.03 has been paid to priority unsecured creditors but that no other "post- confirmation distributions" are disclosed in Summit Brantley monthly operating reports, she notes. "To an even greater extent than stated in the U.S. Trustee's earlier Motion, the Debtor has failed to comply with the terms of its own Plan, and has materially defaulted on the terms of that Plan," the motion stated The report says Jerome Teel, Brantley's attorney, filed opposition to the trustee's motion to convert the case from Chapter 11 to Chapter 7, which could lead to liquidation of the company's assets. "The Debtor would oppose the Motion to Convert Chapter 11 Case to Chapter (7) filed by the U.S. Trustee," Teel's response says. "The Debtor wishes to complete his Chapter 11 case and is bringing all outstanding reports and fees current." The Jackson Sun notes that in November 2010, the U.S. Bankruptcy Court for the Western District of Tennessee approved a plan that would allow former workers to receive a portion of their owed wages by the end of the 2010 year, Mr. Teel said in a past Jackson Sun interview. About Summit Brantley Summit Brantley Building Innovations is a defunct Lexington-based manufacturing company owned by Bardo Brantley. The Company manufactured exterior and interior wall panels and floor systems for multi- and single-family homes and hotels. Summit Brantley Building Innovations filed for Chapter 11 bankruptcy protection (Bankr. W.D. Tenn. Case No. 10-10234) on Jan. 22, 2010. The Company disclosed $811,190 in assets and $1,238,558 in liabilities in its schedules. BARNES BAY: Amends Plan to Address U.S. Trustee's Objections ------------------------------------------------------------ Barnes Bay Development Ltd. and its debtor affiliates filed with the U.S. Bankruptcy Court for the District of Delaware a second amended modified joint Chapter 11 plan of reorganization on Aug. 19, 2011, to, among other things, address objections raised by Roberta A. DeAngelis, U.S. Trustee for Region 3. The U.S. Trustee complained that the releases and exculpation provisions of the prior version of the Plan are too broad in scope and include non-debtor third parties that are not otherwise entitled to that relief. The U.S. Trustee also complained that the prior Plan's distribution scheme appears to differentiate improperly among similarly situated claims. Specifically, the U.S. Trustee pointed out that, under the prior Plan, the unsecured claims among the "PSA Claims" which are those unsecured claim arising out of the rejection or termination of a Purchase and Sale Agreement for the purchase of a residence property, are separated into three "tiers." Under the prior Plan, the distribution to Tier 1 PSA Claim's is equal to 50% of the amount of the allowed claim, while the Tier 2 PSA Claims garner a distribution equal to 25% of the amount of the allowed claim and Tier 3 PSA Claim's are allowed a distribution of a mere 15% of the amount of the allowed claim. The Plan Proponents, the U.S. Trustee complained, offer no rational reason to differentiate among these similarly situated unsecured claims. The Aug. 19 Plan provides that each holder of an Allowed PSA Claim (Tier 1) and (Tier 3) will be deemed to have elected the Enforcement Option unless that Holder affirmatively elects either the Purchase Option or the Cash Option. Any Holder of an Allowed PSA Claim (Tier 3) that elects either the Enforcement Option or the Cash Option will retain Guaranty Claims, notwithstanding the releases, injunctions and exculpation provisions. A PSA Creditor electing the Enforcement Option may commence or continue one or more PSA Enforcement Actions or asset any other claim or cause of action relating to Claims against the Debtors against any non-Debtor entity. A PSA Creditor that is determined by a court of competent jurisdiction to hold a valid, binding and enforceable Lien on a Residential Property that is not junior to the Liens of the Prepetition Lender will be treated as the Holder of an Allowed Class 3 Other Secured Claim. A PSA Creditor electing the Purchase Option may purchase a residence property in lieu of receiving a PSA Claim Distribution. A PSA Creditor electing the Cash Option will receive, in full and complete satisfaction of its Allowed PSA Claim, the corresponding PSA Claim Distribution, payable in Cash. According to the Plan Proponents, the Purchase Option and the Cash Option are offered for and in consideration of PSA Creditors' willingness to accept and grant the injunctions and releases set forth in the Plan. Accordingly, for the avoidance of doubt, any PSA Creditor electing either the Purchase Option or the Cash Option will be deemed to consent to, and be bound by, the injunctions and releases set forth in the Plan. Conversely, any PSA Creditor electing (or deemed by inaction to elect) the Enforcement Option, will not be bound by the injunctions and releases set forth in the Plan. The Aug. 19 Plan provides that nothing in the Plan will operate to enjoin or release the right of any PSA Creditor to assert Guaranty Claims other than any PSA Creditor that elects the Purchase Option. Any Guaranty Claims held by a PSA Creditor electing the Cash Option or the Enforcement Option are expressly preserved. The Aug. 19 Plan further provides that nothing in the Plan will (i) operate to release or exculpate (a) any Entity from or against its obligations under the Plan, including the Buyer's obligation to fund Distributions to be made under the Plan, or (b) any obligations arising under the Indemnification Letter, nor (ii) preclude or prevent (a) any PSA Creditor electing the Enforcement Option or Cash Option from commencing and prosecuting any Guaranty Claim or (b) any PSA Creditor electing the Enforcement Option from commencing and prosecuting any one or more PSA Enforcement Actions or asserting any other claim or cause of action, including Guaranty Claims, relating to Claims against the Debtors against any non-Debtor Entity. Payment of Statutory Fees The U.S. Trustee further complained that the provisions of the prior Plan concerning the payment of statutory fees is inconsistent with, contrary to, and violative of applicable law. Under the Aug. 19 Plan, all fees incurred pursuant to Section 1930 of the Judiciary and Judicial Procedure Code on or prior to the effective date of the Plan will be paid on or before the Effective Date. All fees incurred pursuant to Section 1930 after the Effective Date will be paid by the Responsible Person from the Distribution Fund. A redlined version of the Aug. 19 Plan is available for free at http://ResearchArchives.com/t/s?76be About Barnes Bay Beverly Hills, California-based Barnes Bay Development Ltd., owns the Viceroy Anguilla Resort & Residences on the British West Indies island of Anguilla. Barnes Bay and two affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-10792) on March 17, 2011, to facilitate the sale of the resort. Barnes Bay disclosed $3,331,282 in assets and $481,840,435 in liabilities as of the Chapter 11 filing. Akin Gump Straus Hauer & Feld LLP is the Debtors' bankruptcy counsel, and Keithley Lake & Associates is the Debtors' special Anguillan counsel. Kurtzman Carson Consultants LLC is the Debtors' claims, noticing, solicitation and balloting agent. The U.S. Trustee appointed five members to the official committee of unsecured creditors in the Debtors' cases. Brown Rudnick LLP serves as the Committee's co-counsel, and Womble Carlyle Sandridge & Rice, PLLC, as its Delaware co-counsel. C.R. Hodge & Associates is the Committee's foreign counsel. FTI Consulting, Inc., serves as the Committee's financial advisors. BEAR ISLAND: Files Chapter 11 Liquidation Plan ---------------------------------------------- Bear Island Paper Company, L.L.C., filed with the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division, a Chapter 11 plan of liquidation and an accompanying disclosure statement on Aug. 24, 2011. Hearing on the approval of the Disclosure Statement is scheduled for Oct. 5, 2011, at 2:00 p.m. The Confirmation Hearing is scheduled for Nov. 22, at 2:00 p.m. The deadline to file an objection to the confirmation of the Plan and to vote to accept or reject the Plan is on Nov. 14. The Plan provides for the termination of the Debtor's business operations and the liquidation of its assets. Subject to the rights of certain parties in interest to object to the allowance and priority of claims, the Plan provides for the payment in full to holders of Allowed Administrative Claims and Allowed Priority Claims. The Plan further provides for a recovery to holders of Allowed General Unsecured Claims. Full-text copies of the Plan and Disclosure Statement are available for free at http://ResearchArchives.com/t/s?76c0 About White Birch & Bear Island Canada-based White Birch Paper Company is the second-largest newsprint producer in North America. As of Dec. 31, 2009, the White Birch Group held a 12% share of the North American newsprint market and employed roughly 1,300 individuals (the majority of which reside in Canada). Bear Island Paper Company, L.L.C., is a U.S.-based unit of White Birch. Bear Island filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Case No. 10-31202) on Feb. 24, 2010. Bear Island estimated assets of $100 million to $500 million and debts of $500 million to $1 billion in its Chapter 11 petition. At June 30, 2011, the Company had $141.9 million in total assets, $153.2 million in total liabilities, and a stockholders' deficit of $11.3 million. White Birch filed for bankruptcy protection under Canada's Companies' Creditors Arrangement Act, before the Superior Court for the Province of Quebec, Commercial Division, Judicial District of Montreal, Canada. White Birch and five other affiliates -- F.F. Soucy Limited Partnership; F.F. Soucy, Inc. & Partners, Limited Partnership; Papier Masson Ltee; Stadacona Limited Partnership; and Stadacona General Partner, Inc. -- also sought bankruptcy protection under Chapter 15 of the U.S. Bankruptcy Code (Bankr. E.D. Va. Case No. 10-31234). Jonathan L. Hauser, Esq., at Troutman Sanders LLP, in Virginia Beach, Virginia; and Richard M. Cieri, Esq., Christopher J. Marcus, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, serve as counsel to White Birch, as Foreign Representative. Kirkland & Ellis and Troutman Sanders also serve as Chapter 11 counsel to Bear Island. AlixPartners LLP serves as financial and restructuring advisors to Bear Island, and Lazard Freres & Co., serves as investment banker. Garden City Group is the claims and notice agent. Jason William Harbour, Esq., at Hunton & Williams LLP, in Richmond, Virginia, represents the Official Committee of Unsecured Creditors. Chief Judge Douglas O. Tice, Jr., handles the Chapter 11 and Chapter 15 cases. BEAR VALLEY: Wants Tenants to Turnover Rent to Maintain Property ---------------------------------------------------------------- Bear Valley Family Limited Partnership asks the U.S. Bankruptcy Court for the Central District of California to require turnover of rent (both back rent and ongoing rent) from tenants namely (i) Chipotle Mexican Grill, Victorville, CA; (ii) VS Direct, inc. and (iii) Acrobats, LLC. The Debtor relates that the rents are being escrowed by tenants Vitamin Shoppe and Chipotle because of a dispute over the management of the two commercial buildings in Victorville, California, by the Debtor and one of the alleged members of the Debtor. Acrobats is paying Ronen Armony, the alleged member, and he is not using the funds to maintain the property. The Debtor also states that the secured lender is seeking adequate protection starting Aug. 1, and the only funds that the Debtor can make these payments are from the rent. Further, the maintenance of the properties has been lagging. All but three of the lights in the parking area lot have gone out creating a safety hazard. The Debtor needs to be able to collect the rents to correct the safety hazard. 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. BEARINGPOINT INC: Unsecured Creditors to Receive 3rd Distribution ----------------------------------------------------------------- John DeGroote Services, LLC, as Liquidating Trustee to the BearingPoint, Inc. Liquidating Trust, disclosed that the Trust will make a distribution to unsecured creditors of BearingPoint, Inc. and its affiliated debtors in the amount of $5 million. This will be the Trust's third distribution. Checks will be mailed to holders of Allowed General Unsecured Claims. "This distribution is the result of the commitment and dedication of the Trust's professionals and contractors. As we move to the next phase of our wind-down, we are well positioned to pursue remaining litigation claims and finalize the sale or disposition of additional assets over the long term as necessary" "[The] distribution was driven by litigation recoveries and asset sales," said John DeGroote, President of John DeGroote Services, LLC. These actions have included: -- A $5 million settlement with American Express Travel Related Services, Inc. for preference and related claims; A $5 million dollar settlement with the United States Department of the Interior; -- The sale of BearingPoint trademarks and related intellectual property assets held by the Trust's Barbadian subsidiary; and Various tax recoveries at the federal and state levels. "Subsequent distributions will primarily hinge on recoveries from litigation, remaining preference claims, and the repatriation of international funds," noted former BearingPoint Chief Financial Officer and current Restructuring Advisor David Johnston of AlixPartners. With the distribution, the Trust has returned over $448 million to BearingPoint's creditors, including payment in full to secured lenders, full satisfaction of BearingPoint, Inc.'s Paid Time Off obligations to former employees, payment of over $4 million to additional administrative and priority creditors, and $26 million to unsecured creditors. The Unsecured Creditor Pool now stands at less than $782 million. "This distribution is the result of the commitment and dedication of the Trust's professionals and contractors. As we move to the next phase of our wind-down, we are well positioned to pursue remaining litigation claims and finalize the sale or disposition of additional assets over the long term as necessary," DeGroote said. About BearingPoint Inc. BearingPoint, Inc. -- http://www.BearingPoint.com/-- was one of the world's largest providers of management and technology consulting services to Global 2000 companies and government organizations in more than 60 countries worldwide. BearingPoint, Inc., fka KPMG Consulting, Inc., together with its units, filed for Chapter 11 protection (Bankr. S.D.N.Y., Case No. 09-10691) on Feb. 18, 2009. BearingPoint disclosed total assets of $1.655 billion and debts of $2.201 billion as of Dec. 31, 2008. The Debtors' legal advisor was Weil, Gotshal & Manges, LLP. Their restructuring advisor was AlixPartners LLP, and their financial advisor and investment banker was Greenhill & Co., LLC. Jeffrey S. Sabin, Esq., at Bingham McCutchen LLP represented the Creditors' Committee. Garden City Group served as claims and notice agent. On the Petition Date, BearingPoint filed a Chapter 11 plan of reorganization negotiated with lenders prepetition. BearingPoint, however, changed course and pursued a sale of its units, after determining that creditor recoveries would be maximized through sales of the businesses. On Dec. 22, 2009, the Bankruptcy Court entered an order confirming the Debtors' Modified Second Amended Joint Plan. On Dec. 31, 2009, a Notice of Effective Date of the Plan was filed with the Bankruptcy Court. John DeGroote was appointed as liquidating trustee under the Plan. The liquidating trustee is represented by Katherine Dobson, Esq., at Bingham McCutchen, in Hartford, Connecticut. The trustee also has retained McKool Smith P.C. and Whiteford, Taylor & Preston L.L.P. to pursue claims against former company officers. Attorneys for John DeGroote can be reached at: BINGHAM McCUTCHEN LLP Jeffrey S. Sabin, Esq. 399 Park Avenue New York, NY 10022 Tel: (212) 705-7000 Fax: (212) 702-3668 E-mail: jeffrey.sabin@bingham.com Sabin Willett, Esq. One Federal Street Boston, MA 02110 Tel: (617) 951-8000 Fax: (617) 345 - 5033 E-mail: sabin.willett@bingham.com - and - MCKOOL SMITH P.C. Peter S. Goodman, Esq. One Bryant Park, 47th Floor New York, NY 10036 Tel: (212) 402-9400 Fax: (212) 402-9444 E-mail: pgoodman@mckoolsmith.com Lew LeClair, Esq. Robert Manley, Esq. 300 Crescent Court, Suite 1500 Dallas, TX 75201 Tel: (214) 978-4000 Fax: (214) 978-4044 E-mail: lleclair@mckoolsmith.com rmanley@mckoolsmith.com Basil A. Umari 600 Travis, Suite 7000 Houston, TX 77002 Tel: (713) 485-7300 Fax: (713) 485-7344 E-mail: bumari@mckoolsmith.com BERNARD L. MADOFF: Trustee Fights to Keep UniCredit Suit Alive -------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the trustee liquidating Bernard L. Madoff Investment Securities Inc. and the Securities Investor Protection Corp. each filed 38-page briefs yesterday opposing dismissal of the trustee's $59 billion lawsuit against UniCredit SpA and subsidiary UniCredit Bank Austria AG. According to the report, the 76 pages of briefs, not counting supporting papers, represent the trustee's and SIPC's attempts at preventing U.S. District Judge Jed Rakoff from dismissing the suit for the reasons he gave in late July when he threw out the largest part of a separate $9 billion suit against HSBC Holdings Plc. SIPC used the majority of its brief yesterday to explain why it "respectfully disagrees" with Judge Rakoff's grounds for dismissal of claims against HSBC. SIPC once again propounded a theory why a trustee appointed under the Securities Investor Protection Act has a unique duty imposed by statute to recover so-called customer property, which in this instance is money stolen from customers of the Madoff Ponzi scheme. The report relates that the Madoff trustee takes a different tack in his 38-page brief by explaining how the UniCredit suit is different from HSBC. In support of his claims under the Racketeer Influenced & Corrupt Organizations Act, commonly known as RICO, the trustee argues that the UniCredit "defendants ran their own criminal organization, independent of Madoff." The trustee's argument is designed to avoid the so-called in pari delicto defense, where one participant in a fraud can't sue another. Countering the contention that RICO can't apply outside the U.S., the trustee, the report adds, lays out facts designed to show that more than half of the underlying activities, including wire fraud, mail fraud and money laundering, took place in the U.S. Even if Rakoff were correct in dismissing claims against HSBC based on common law, the Madoff trustee points out that RICO claims aren't based on common law. UniCredit and Bank Austria will file replies on Sept. 12 in advance of a hearing before Rakoff on Sept. 19. The trustee's suit contends that Bank Medici AG and Sonja Kohn, its founder, worked in tandem with Madoff going back at least until the mid-1980s. The trustee alleges that Ms. Kohn and her bank funneled more than $9 billion into Mr. Madoff through foreign investment funds. The UniCredit case in district court is Picard v. Kohn, 11-1181, U.S. District Court, Southern District New York (Manhattan). About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.) As of July 15, 2011, a total of US$6.88 billion in claims by investors has been allowed, with US$794.9 million to be paid by the Securities Investor Protection Corp. Investors are expected to receive additional distributions from money recovered by Mr. Picard from lawsuits or settlements. BROADSTRIPE LLC: Wave Broadband Agrees to Buy All Assets -------------------------------------------------------- Jayashree Adkoli at TMCnet reports that Wave Broadband has signed an agreement to purchase substantially all of the assets of Broadstripe LLC, a provider of residential and commercial bundled communications services. According to the report, Wave Broadband -- currently operating in California, Oregon, and Washington, and serving over 300,000 customers -- will acquire Broadstripe's Washington and Oregon properties that reach over 103,000 homes. While, WOW! will add 92,000 households from Broadstripe's Michigan systems to the 1.5 million households it already serves in Illinois, Indiana, Michigan, and Ohio. In addition, Broadstripe's Maryland system operating in Anne Arundel County will be acquired by Anne Arundel Broadband, LLC. This newly formed entity will be operated by industry veterans to include John Bjorn, Broadstripe's current executive VP of regional operations. The report says recent sale of Broadstripe must be approved by the Bankruptcy Court. Upon approval, the transition is expected to take up to four months before the sale can be officially completed. DH Capital, which is providing advisory services to Broadstripe on this transaction, is a New York City-based private investment banking partnership serving companies in the communications and Internet infrastructure sectors. It provides a full range of advisory services to companies and financial institutions, such as mergers and acquisitions, private capital placements, financial restructuring, and operational consulting. About Broadstripe LLC Headquartered in Chesterfield, Missouri, Broadstripe LLC -- http://www.broadstripe.com/-- provides videos and telephone services to consumers and business in Maryland, Michigan, Washington and Oregon. The Company and five of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Case No. 09-10006) on Jan. 2, 2009. Attorneys at Ashby & Geddes, and Gardere Wynne Sewell LLP represent the Debtors in their restructuring efforts. The Debtors tapped FTI Consulting Inc. as their restructuring consultant, and Epiq Bankruptcy Consultants LLC as their claims agent. In its petition, Broadstripe estimated assets and debts between $100 million and $500 million. Broadstripe has been in Chapter 11 more than 18 months thus any creditor can file a plan. CANO PETROLEUM: Cancels Commodity Swap Contracts with Natixis ------------------------------------------------------------- Cano Petroleum, Inc., executed a mutual termination letter with Natixis providing for the termination of two fixed price commodity swap contracts that the parties entered into on Sept. 11, 2009. The fixed price commodity swaps were based on West Texas Intermediate NYMEX prices. In recognition that Natixis was able to terminate the fixed price commodity swaps due to existing events of default, including, but not limited to, those defaults identified in the Consent and Forbearance Agreement dated Aug. 5, 2010, among Cano, certain guarantors, certain lenders, including Natixis, and Union Bank, N.A. and previously disclosed on a current report on Form 8-K filed with the SEC on Aug. 10, 2010, Cano and Natixis agreed to mutually and consensually terminate the fixed price commodity swaps at a time when Cano's exposure in the swap transactions appears to be favorably reduced. Pursuant to the Termination Letter, Cano also released Natixis and its affiliates from claims related to the commodity swap transactions, the early termination thereof and Cano's Amended and Restated Credit Agreement. In connection with the termination of the commodity swap transactions, Cano must pay $3.65 million to Natixis. In addition to being a party to the commodity swap transactions, Natixis is also one of the senior lenders under Cano's Amended and Restated Credit Agreement. About Cano Petroleum Cano Petroleum, Inc., is an independent Texas-based energy producer with properties in the mid-continent region of the United States. Cano's primary focus is on increasing domestic production from proven fields using enhanced recovery methods. Cano trades on the NYSE Amex Stock Exchange under the ticker symbol CFW. The Company's balance sheet at March 31, 2011, showed $257.88 million in total assets, $137.10 million in total liabilities, and $120.78 million in total stockholders' equity. The Company reported a net loss of $11.5 million on $22.8 million of revenue for fiscal year ended June 30, 2010, compared with a net loss of $231,000 on $23.4 million of revenue for fiscal 2009. The Company reported a net loss of $12.53 million on $18.62 million of total operating revenue for the nine months ended March 31, 2011, compared with a net loss of $11.77 million on $16.36 million of total operating revenue for the same period a year ago. As reported by the Troubled Company Reporter on Sept. 28, 2010, the Company said if it is unable to successfully execute one of its strategic alternatives, restructure its existing indebtedness, obtain further waivers or forbearance from its existing lenders or otherwise raise significant additional capital, it is unlikely that it will be able to meet its obligations as they become due and to continue as a going concern. As a result, the Company will likely file for bankruptcy or seek similar protection. Moreover, it is possible that the Company's creditors may seek to initiate involuntary bankruptcy proceedings against it or against one or more of its subsidiaries, which would force it to make a defensive voluntary filing of its own. CD PETRO: Files for Chapter 7 Bankruptcy Protection --------------------------------------------------- The Star Tribune reports that CD Petro LLC, 13774 Reimer Dr., Maple Grove, filed for Chapter 7 bankruptcy protection (Bankr. D. Minn. Case No. 11-45513) in Minneapolis, disclosing assets of $2,195,058, and liabilities of $3,018,031. Chip A. Rice is the chief manager of the company. CHERRY HILL: Files for Chapter 11 Bankruptcy Protection ------------------------------------------------------- Philly.com reports that the Spa at the Cherry Hill Inn Inc., 1585 Rt. 73, Pennsauken, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in New Jersey. There are no schedules available. CHINA XINGBANG: Posts $510,700 Net Loss in 2nd Quarter ------------------------------------------------------ China Xingbang Industry Group Inc. filed its quarterly report on Form 10-Q, reporting a net loss of $510,746 on $597,922 of revenues for the three months ended June 30, 2011, compared with net income of $123,205 on $1.32 million of revenues for the same period last year. The Company reported a net loss of $529,327 on $1.63 million of revenues for the six months ended June 30, 2011, compared with a net loss of $70,917 on $2.26 million of revenues for the corresponding period of 2010. The Company's balance sheet at June 30, 2011, showed $2.05 million in total assets, $1.66 million in total liabilities, all current, and stockholders' equity of $387,988. The Company has an accumulated deficit of $285,159 as at June 30, 2011, that includes a net loss of $529,327 for the six months ended June 30, 2011. As at June 30, 2011, the Company's total current liabilities exceeded its total current assets by $68,333 and the Company used cash in operations of $572,401 for the six months ended on that date. "These factors raise substantial doubt about its ability to continue as a going concern." A copy of the Form 10-Q is available at http://is.gd/g1fwDv China Xingbang Industry Group Inc., a Nevada corporation, through its wholly owned subsidiaries Xingbang BVI and Xingbank HK, owns Guangzhou Xingbang Information Consulting Co., Ltd., a wholly foreign-owned enterprise, or the "WFOE", formed in the PRC, which controls Guangdong Xingbang, a variable interest entity, through a series of VIE contractual arrangements. Guangdong Xingbang is the sole source of income and operations of the Company. Based in the city of Guangzhou, Guangdong Province, China, Guangdong Xingbang is a company principally engaged in the provision of marketing consultancy services to manufacturers, distributors and other businesses and local governments in the lighting, ceramics and other home furnishings industry in the PRC. CIRCUIT CITY: Wins Court OK to Sell IP Assets for $6 Million ------------------------------------------------------------ Hilary Russ at Bankruptcy Law360 reports that U.S. Bankruptcy Judge Kevin R. Huennekens on Friday approved the $6 million sale of Circuit City Stores Inc.'s intellectual property assets to Innovative Video Security LLC, the highest bidder at an Aug. 16 auction. Judge Huennekens signed off on the transaction, which is for six dozen patents and other intellectual property. The liquidating trust will distribute proceeds of the sale to certain creditors and interest holders, according to Law360. About Circuit City Headquartered in Richmond, Virginia, Circuit City Stores Inc. (NYSE: CC) -- http://www.circuitcity.com/-- was a specialty retailer of consumer electronics, home office products, entertainment software and related services in the U.S. and Canada. Circuit City Stores together with 17 affiliates filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Lead Case No. 08-35653) on Nov. 10, 2008. InterTAN Canada, Ltd., which runs Circuit City's Canadian operations, also sought protection under the Companies' Creditors Arrangement Act in Canada. Gregg M. Galardi, Esq., and Ian S. Fredericks, Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP, are the Debtors' general restructuring counsel. Dion W. Hayes, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, are the Debtors' local counsel. The Debtors also tapped Kirkland & Ellis LLP as special financing counsel; Wilmer, Cutler, Pickering, Hale and Dorr, LLP, as special securities counsel; and FTI Consulting, Inc., and Rotschild Inc. as financial advisors. The Debtors' Canadian general restructuring counsel is Osler, Hoskin & Harcourt LLP. Kurtzman Carson Consultants LLC is the Debtors' claims and voting agent. The Debtors disclosed total assets of $3,400,080,000 and debts of $2,323,328,000 as of Aug. 31, 2008. Circuit City has opted to liquidate its 721 stores. It has obtained the Bankruptcy Court's approval to pursue going-out-of- business sales, and sell its store leases in Jan. 2009. In May 2009, Systemax Inc., a multi-channel retailer of computers, electronics, and industrial products, acquired certain assets, including the name Circuit City, from the Debtors through a Court- approved auction. CIT GROUP: Moody's Rates Revolving Credit Facility at 'Ba3' ----------------------------------------------------------- Moody's Investors Service assigned a rating of Ba3 to CIT Group Inc.'s $2 billion revolving credit facility, which closed on August 25. Unrelated to this transaction, Moody's also revised the ratings assigned to certain CIT bonds previously designated as unsecured to B2 from B3, on the basis of collateral pledges securing these bonds. CIT's Corporate Family Rating (CFR) remains at B2 with a stable outlook. RATINGS RATIONALE The new revolving credit facility, which matures in August 2015, initially has the same guarantors, collateral, and priority as CIT's $2.5 billion first lien term loan. When CIT fully repays its outstanding Series A Notes, and the collateral pledges and guarantees supporting CIT's Series C notes are thereby also released, the revolving credit facility will automatically become unsecured. Proceeds of the new revolving credit facility, together with cash on hand at CIT, were used to repay the $2.5 billion first lien term loan. The Ba3 rating on the revolving credit facility is two notches above CIT's CFR of B2, based upon terms that meaningfully lower secured lenders' risk of loss compared to holders of CIT's other indebtedness. The revolving credit facility is guaranteed by nearly all direct and indirect material domestic restricted subsidiaries of CIT. Furthermore, the facility is secured on a first-lien basis by substantially all U.S. assets owned by CIT not otherwise pledged to other secured debts and securitizations, as well as stock pledges of certain foreign CIT subsidiaries. CIT must at all times comply with a covenant requiring that its collateral coverage ratio exceed 2.0x. Once the revolving credit facility becomes unsecured, Moody's anticipates that the rating of the facility will be no more than one notch higher than CIT's CFR. The collateral pledges and (except as noted below) guarantees backing the revolving credit facility will be automatically released when CIT fully repays its Series A second-lien notes and when the collateral pledges and guarantees supporting CIT's Series C second lien notes are thereby also released (the Collateral Release Date). From that time, the revolving credit facility will be guaranteed by certain CIT domestic subsidiaries, though without an accompanying pledge of assets. Additionally, CIT will be subject to a covenant that its guarantor asset coverage ratio be not less than 2.0x at all times. Moody's believes that the upstream guarantees and associated guarantor asset coverage covenant that become effective after the Collateral Release Date provide less protection to creditors than the initial collateral and guarantor provisions supporting the facility, but enhanced protection in comparison to holders of CIT's other obligations. Moody's also revised the ratings assigned to 32 bonds totaling approximately $135 million that were reinstated after CIT emerged from bankruptcy in December 2009. These bonds, originally unsecured when issued prior to CIT's bankruptcy, include a covenant that CIT would not create liens on assets of the borrower (CIT Group Inc.) unless equal and ratable liens were also provided to the debt holders. When liens were created on CIT Group Inc. as part of its bankruptcy reorganization, equal and ratable liens were also provided to the reinstated bonds relating to CIT Group Inc. assets, but not the assets of CIT's subsidiaries. In Moody's view, the asset pledge enhances the recovery prospects of these bonds in the event of default and warrants the revised rating. In its last CIT rating action on May 3, 2011, Moody's upgraded CIT's Corporate Family Rating to B2 from B3, its Senior Secured First Lien Term Loan to Ba3 from B1, its Senior Secured Second Lien Regular Bond/Debenture to B2 from B3, and its Senior Unsecured Regular Bond/Debenture to B3 from Caa1, with a stable outlook. The principal methodology used in this rating was Analyzing The Credit Risks Of Finance Companies published in October 2000. CIT Group, Inc. is a bank holding company with headquarters in New York City and Livingston, New Jersey. CITY OF CENTRAL FALLS: Files List of 20 Largest Unsec. Creditors ---------------------------------------------------------------- The City of Central Falls has filed with the U.S. Bankruptcy Court for the District of Rhode Island a list of its 20 largest unsecured creditors. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Intercity Maintenance and Restoration Inc 15 Clarkson Street Providence, RI 02908 Trade Debt $156,242.01 Women's Development Corporation 861A Broad Street Providence, RI 02907 Legal Judgment $130,000.00 Cardi Corporation 400 Lincoln Avenue Warwick, RI 02888 Trade Debt $80,828.66 RI Resource Recovery Corporation Trade Debt $48,564.22 Pawtucket Water Supply Board Utility $36,875.57 National Grid Utility $34,788.63 Petro Commercial Services Trade Debt $22,405.58 Ursillo, Teitz & Ritch, Ltd Trade Debt $14,367.61 Roger Williams University Trade Debt $12,094.87 One Communications Corp. Trade Debt $11,830.15 Dennis K Burke Inc Trade Debt $11,081.67 RI Inter-Local Trust Risk Management Trade Debt $9,643.00 RI Traffic Tribunal Trade Debt $8,915.41 Patrick's Properties LLC Trade Debt $8,854.78 Narragansett Bay Commission Utility $7,784.61 RI Division of Taxation Excise Tax Division/Realty Trade Debt $7,349.00 The Investment Co Trade Debt $7,059.49 Highlander Dunn Institute Trade Debt $6,435.00 Curanderismo Inc. Trade Debt $6,289.66 Alliance Benefit Group Trade Debt $6,200.00 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. CNC DEVELOPMENT: UHY Vocation HK Raises Going Concern Doubt ----------------------------------------------------------- CNC Development Ltd. filed on Aug. 15, 2011, its annual report on Form 20-F for the fiscal year ended Dec. 31, 2010. UHY Vocation HK CPA Limited, in Hong Kong, expressed substantial doubt about CNC Development's ability to continue as a going concern. The independent auditors noted that the Company has only limited working capital as of Dec. 31, 2010, and is dependent on obtaining additional financing to execute its business plan. The Company reported a net loss of $7.7 million on $0 revenue for 2010, compared with a net loss of $4.3 million on $0 revenue for 2009. The Company's balance sheet at Dec. 31, 2010, showed $19.6 million in total assets, $11.7 million in total liabilities, $21.9 million of total preferred stock and accrued dividends, and a stockholders' deficit of $14.0 million. A copy of the Form 20-F is available at http://is.gd/VQlQyf CNC Development Ltd. was established under the laws of the British Virgin Islands on Aug. 8, 2008, as a subsidiary of InterAmerican Acquisition Group, Inc., a blank check company that was formed as a vehicle for an acquisition of an operating business. The Company and its subsidiaries, until the suspension of business operations, were engaged in providing services to municipal- government customers to integrate project design, implementation and financing for Build-Transfer projects in the People's Republic of China. The Company lists its principal executive offices as c/o WHI, Inc., at 410 South Michigan Ave., Suite 620, in Chicago, Illinois. COMMERCETEL CORP: Posts $466,100 Net Loss in 2nd Quarter -------------------------------------------------------- CommerceTel Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $466,186 on $553,108 of revenues for the three months ended June 30, 2011, compared with a net loss of $330,371 on $205,099 of revenues for the same period last year. The Company reported a net loss of $1.2 million on $693,745 of revenues for the six months ended June 30, 2011, compared with a net loss of $458,464 on $428,822 of revenues for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $4.6 million in total assets, $3.0 million in total liabilities, and stockholders' equity of $1.6 million. Mayer Hoffman McCann, in San Diego, expressed substantial doubt about CommerceTel's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has incurred recurring operating losses and negative cash flows from operations and is dependent on additional financing to fund operations. A copy of the Form 10-Q is available at http://is.gd/5axPNn Based in San Diego, CommerceTel Corporation is a provider of technology that enables major brands and enterprises to engage consumers via their mobile phone. CONSHOHOCKEN COLLISION: Files for Chapter 7 Protection ------------------------------------------------------ Philly.com reports that Conshohocken Collision Inc., 369 W. Elm St., Conshohocken, filed for Chapter 7 bankruptcy protection in the U.S. Bankruptcy Court in Pennsylvania. There are no schedules available. CRAWFORD FURNITURE: Files for Chapter 11 Bankruptcy Protection -------------------------------------------------------------- Crawford Furniture Manufacturing Corp., along with affiliate, Crawford Furniture Retail Outlet Inc., filed for Chapter 11 bankruptcy protection. Thomas Russell at Furniture Today reports that the Debtors each estimated between $10 million and $50 million in assets and $1 million to $10 million in liabilities. The top 20 unsecured creditors were listed as having more than $645,000 in claims against the company. The report says the Company's retail landlord, Benderson Development, had locked two of its locations, including a store in Hamburg, N.Y., and a warehouse in Cheektowaga, N.Y. The Company stated that the bankruptcy filing will allow it to continue operating its businesses while company officials assess their operations. It also said that the stores would remain open during the bankruptcy. Established in 1883, Crawford Furniture Manufacturing Corp. advertises itself as a producer of 100% solid wood furniture made with materials purchased within a 150-mile radius of Jamestown. Its line includes bedroom, dining room, office and home entertainment and occasional furniture. Crawford Furniture Mfg. Corp. and Crawford Furniture Retail Outlet, Inc. filed Chapter 11 petitions (Bankr. W.D.N.Y. Case Nos. 11-12945 and 11-12946) on Aug. 25, 2011. Camille W. Hill, Esq., at Bond, Schoeneck & King, PLLC, Syracuse, New York, serves as counsel. CUI GLOBAL: Stockholders OK 1-for-50 Reverse Stock Split -------------------------------------------------------- The Stockholders approved a proposal to effect a reverse stock split of the issued and outstanding shares of CUI Global, Inc., $0.001 par value common stock at any time prior to June 30, 2012, at a ratio of up to 1 for 50, as determined by the Board of Directors in its sole discretion. No fractional shares will be issued: If the number of "pre-split" common shares is not evenly divisible by the ratio number, the "pre-split" shares will round up to the next number that is divisible by the ratio number. The number of authorized common stock will remain unaffected and the par value will remain at $0.001 per share. The Board of Directors has not yet set the reverse split ratio and effective date. About CUI Global Tualatin, Ore.-based CUI Global, Inc., formerly known as Waytronx, Inc., is a platform company dedicated to maximizing shareholder value through the acquisition, development and commercialization of new, innovative technologies. As reported by the TCR on April 8, 2011, Webb & Company, in Boynton Beach, Florida, expressed substantial doubt about CUI Global's ability to continue as a going concern. The independent auditors noted that the Company has a net loss of $7,015,896, a working capital deficiency of $675,936 and an accumulated deficit of $73,596,738 at Dec. 31, 2010. The Company reported a net loss of $7.5 million on $40.9 million of revenues for 2010, compared with a net loss of $16.0 million on $28.9 million of revenues for 2009. The Company's balance sheet at March 31, 2011, showed $34.06 million in total assets, $21.93 million in total liabilities, $171,778 in non-controlling interest, and $12.30 million in total stockholders' equity. CULTURE MEDIUM: Madsen & Associates Raises Going Concern Doubt -------------------------------------------------------------- Culture Medium Holdings Corp. (Brand Neue Corporation) filed on Aug. 15, 2011, its annual report on Form 10-K for the fiscal year ended March 31, 2011. Madsen & Associates CPA's, Inc., in Murray, Utah, expressed substantial doubt about Culture Medium Holdings' ability to continue as a going concern. The independent auditors noted that the Company will need additional working capital to service its debt and for its planned activity. The Company reported a net loss of $2.5 million for fiscal 2011, compared with a net loss of $269,617 for fiscal 2010. The Company recorded sales of $977,133 in fiscal 2011. The Company reported no sales in fiscal 2010. The Company's balance sheet at March 31, 2011, showed $2.3 million in total assets, $1.8 million in total liabilities, and stockholders' equity of $456,338. A copy of the Form 10-K is available at http://is.gd/9Y19Tc Las Vegas, Nev.-based Culture Medium Culture Medium Holdings Corp., formerly Brand Neue Corp., was incorporated on March 15, 2007, in the State of Nevada. The Company's original business purpose was to engage in the business of acquisition, exploration and development of natural resource properties. The Company has shifted its business to concentrate on bringing innovative products to market. In the past year it formed a subsidiary, Voyager Health Technologies Corp., to market nutriceutical products. It began operations on Jan. 28, 2011. CUMULUS MEDIA: Provides Procedures on Cash and Stock Elections -------------------------------------------------------------- Cumulus Media Inc. entered into an Agreement and Plan of Merger, dated as of March 9, 2011, by and among the Company, Cumulus Media Holdings Inc., Cadet Merger Corporation and Citadel Broadcasting Corporation. On Aug. 5, 2011, the Company's Registration Statement on Form S-4 relating to the pending acquisition of Citadel pursuant to the Merger Agreement was declared effective by the Securities and Exchange Commission. Commencing on or about Aug. 8, 2011, the Company's and Citadel's joint Information Statement/Proxy Statement/Prospectus, included as part of the Registration Statement, was first mailed to the stockholders of the Company and of Citadel. Cash and Stock Elections On Aug. 10, 2011, the Company commenced the distribution of the Letter of Election and Transmittal and the Letter of Election to all holders of Citadel common stock and Warrants. Pursuant to the terms of the Merger Agreement, Merger Sub will be merged with and into Citadel, and each share of common stock of Citadel outstanding immediately prior to the Merger will be converted into the right to receive: (i) $37.00 in cash; or (ii) 8.525 shares of common stock of the Company; or (iii) a combination of cash and common stock of the Company. In accordance with the Merger Agreement, each Citadel Securityholder that validly surrenders its shares of Citadel common stock or Warrants prior to the Election Deadline, has the opportunity to elect to receive cash or stock, or a combination thereof, in exchange for its shares of Citadel common stock or Warrants. As stated in the applicable Election Form, Citadel Securityholders who hold their securities in their own name must submit their Election Forms to U.S. Bank National Association, as the exchange agent for the Merger, in accordance with the instructions set forth on the front cover of the applicable Election Form. Citadel Securityholders who hold their securities in "street name" through a broker must make their elections in accordance with the instructions they receive from their broker. Citadel Securityholders who hold securities in their own name should properly complete, sign and deliver the applicable Election Form to the Exchange Agent by the election deadline, which is 5:00 p.m., New York City time, on Sept. 9, 2011, unless extended. Citadel Securityholders who hold securities in "street name" through a broker must make their election in accordance with the instructions they receive from their broker. All currently outstanding shares of Citadel common stock and Warrants are held in book entry form through a direct registration system maintained by Citadel's transfer agent for its common stock and by Citadel's warrant agent for the warrants. Consequently, there will not be any guaranteed delivery procedures offered with respect to the applicable Election Form, and notices of guaranteed delivery are not being provided to Citadel Securityholders. Warrants to Purchase Shares of Citadel Common Stock Pursuant to the terms of the Merger Agreement, Warrantholders have the opportunity to elect to have their Warrants adjusted into the right to receive, upon completion of the Merger and exercise of their Warrants, (i) the Cash Consideration, (ii) the Stock Consideration or (iii) Mixed Consideration, in each case subject to proration. Under the Merger Agreement there are limits on the total amount of Stock Consideration and Cash Consideration, respectively, that Warrantholders will be entitled to receive under the adjusted terms of the Warrants. If the total Cash Consideration or Stock Consideration would exceed the respective limits, the Warrantholders who made valid elections will receive Mixed Consideration as described, and subject to the proration procedures, in the Merger Agreement. Consequently, there is no guarantee that a Warrantholder's Warrants will be adjusted into the right to receive, upon exercise, the Stock Consideration for all of such Warrantholder's Warrants, even if such Warrantholder makes a valid stock election. Likewise, there is no guarantee that a Warrantholder's Warrants will be adjusted into the right to receive, upon exercise, Cash Consideration for all of such Warrantholder's Warrants, even if such Warrantholder makes a valid cash election. Pursuant to the terms of the Merger Agreement, any Warrants for which a Warrantholder does not make a valid election by the Election Deadline will be adjusted into the right to receive consideration in such form of Cumulus shares or cash as was subject to pro-ration in accordance with the terms of the Merger Agreement due to the valid elections of the holders of Citadel shares and Warrants, or, if no provations are required, as was elected by the holders of a majority of Citadel shares and Warrants for which an election was validly made. As a result, the Warrants may be adjusted into the right to receive Stock Consideration, Cash Consideration or Mixed Consideration consistent with the proration procedures contained in the Merger Agreement, whether or not the Warrantholder has made a valid election with respect to its Warrants. In accordance with the terms of the Warrant Agreement, dated as of June 3, 2010, between Citadel and Mellon Investor Services LLC, as warrant agent, which governs the terms of the Warrants, upon the effective time of the Merger, all Warrants that have not been previously exercised will, as of such effective time, be deemed to have been surrendered for cancellation, and the Company will cause any Cash Consideration which Warrantholders are entitled to receive pursuant to the adjusted terms of the Warrants to be paid to Warrantholders as promptly as practicable following the effective time of the Merger. In addition, the Company will issue, or cause to be issued, to any Warrantholders that are entitled to receive Stock Consideration, warrants to purchase shares of the Company's Class A common stock or Class B common stock, which warrants shall be exercisable at any time prior to June 3, 2030, at an exercise price of $0.01 per share, in accordance with the terms of a warrant agreement to be entered into by the Company and an applicable warrant agent as of the effective time of the Merger. Warrantholders who hold their securities in their own name should properly complete, sign and deliver the Letter of Election to the Exchange Agent by the Election Deadline, and Warrantholders who hold their securities in "street name" through a broker must make their election in accordance with the instructions they receive from their broker. About Cumulus Media Based in Atlanta, Georgia, Cumulus Media Inc. (NASDAQ: CMLS) -- http://www.cumulus.com/-- is the second largest radio broadcaster in the United States based on station count, controlling 350 radio stations in 68 U.S. media markets. In combination with its affiliate, Cumulus Media Partners, LLC, the Company believes it is the fourth largest radio broadcast company in the United States when based on net revenues. The Company's balance sheet at June 30, 2011, showed $367.20 million in total assets, $689.67 million in total liabilities, and a $322.47 million total stockholders' deficit. * * * Standard & Poor's Ratings Services said April it raised its corporate credit rating on Atlanta-based Cumulus Media Inc. to 'B' from 'B-'. "The rating remains on CreditWatch, where we placed it with positive implications Feb. 18, 2011," S&P stated. Moody's Investors Service in April upgraded Cumulus Media's Corporate Family Rating to B1 from Caa1 due to the company's pending acquisition of CMP Susquehanna Corp. in the second quarter of 2011 followed by the announced $2.4 billion acquisition of Citadel Broadcasting Corporation later this year. DIAMONDHEAD CASINO: Incurs $273,900 Net Loss in Q2 Ended June 30 ---------------------------------------------------------------- Diamondhead Casino Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $273,934 for the three months ended June 30, 2011, compared with a net loss of $452,342 for the same period last year. The Company reported a net loss of $800,675 for the six months ended June 30, 2011, compared with a net loss of $975,676 for the comparable period in 2010. The Company incurs ongoing expenses, but has no current revenue and no revenue stream with which to pay ongoing expenses. The Company's balance sheet at June 30, 2011, showed $5.6 million in total assets, $2.6 million in total liabilities, and stockholders' equity of $3.0 million. As reported in the TCR on March 29, 2011, Friedman LLP, in New York, N.Y., expressed substantial doubt about Diamondhead Casino's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has incurred significant recurring net losses over the past few years, and in addition, has no operations, except for its efforts to develop the Diamondhead, Mississippi property. A copy of the Form 10-Q is available at http://is.gd/PCEPLn Largo, Fla.-based Diamondhead Casino Corporation, from inception through approximately August of 2000, operated gaming vessels in international waters. The Company eventually divested itself of its gaming operations to satisfy financial obligations to its vendors, lenders and taxing authorities and to focus its resources on the development of a casino resort in Diamondhead, Mississippi. The Company owns, through its wholly-owned subsidiary, Mississippi Gaming Corporation, an approximate 404.5 acre tract of unimproved land in Diamondhead, Mississippi. The property is located at 7051 Interstate 10. The Company intends, in conjunction with unrelated third parties, to develop the site in phases beginning with a casino resort. The casino resort is expected to include a casino, a hotel and spa, pools, a sport and entertainment center, a conference center and a state-of-the-art recreational vehicle park. DK AGGREGATES: Hires H. Kenneth Lefoldt, Jr., as Accountant ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of Mississippi has authorized DK Aggregates LLC to hire H. Kenneth Lefoldt, Jr., of Lefoldt & Company P.A. as accountant. Mr. Lefoldt will assist the Debtor in the preparation of the budgets, pro-formas, and disclosure statement. His rate is $225 per hour. About DK Aggregates LLC Pearlington, Mississippi-based DK Aggregates LLC filed for Chapter 11 bankruptcy protection (Bankr. S.D. Miss. Case No. 10-51823) on Aug. 9, 2010. Robert Alan Byrd, Esq., at Byrd & Wiser, assists the Debtor in its restructuring effort. The Debtor disclosed assets of $17,025,695 and liabilities of $7,004,953 as of the petition date. The Troubled Company Reporter reported on June 22, 2011, that the Debtor disclosed $18,529,695 in assets and $7,114,925 in liabilities. DREIER LLP: Trustee Settles Claims with 360 Networks for $40MM -------------------------------------------------------------- Dan Rivoli at Bankruptcy Law360 reports that Dreier LLP's trustee on Thursday asked a federal bankruptcy court to back a settlement valued at more than $40 million with 360 Networks (USA) Inc., which was a victim of convicted ex-attorney Marc Dreier's Ponzi scheme. Law360 relates that the proposed settlement would require 360 Networks to pay trustee Sheila M. Gowan $2.9 million and nix its claim against the firm. Meanwhile, another claim against the firm related to Dreier's Ponzi scheme was chopped nearly in half to $45.1 million from $87.5 million. About Dreier LLP Marc Dreier founded New York-based law firm Dreier LLP -- http://www.dreierllp.com/-- in 1996. On Dec. 8, 2008, the U.S. Securities and Exchange Commission filed a suit, alleging that Mr. Dreier made fraudulent offers and sales of securities in several cities, selling fake promissory notes to hedge and other private investment funds. The SEC asserted that Mr. Dreier also distributed phony financial statements and audit opinions, and recruited accomplices in connection with that scheme. Mr. Dreier, currently in prison, was charged by the U.S. government for conspiracy, securities fraud and wire fraud (S.D.N.Y. Case No. 09- cr-00085). Dreier LLP sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 08-15051) on Dec. 16, 2008. Stephen J. Shimshak, Esq., at Paul, Weiss, Rifkind, Wharton & Garrison LLP, was tapped as counsel. The Debtor estimated assets of $100 million to $500 million, and debts between $10 million and $50 million in its Chapter 11 petition. Sheila M. Gowan, a partner with Diamond McCarthy, was appointed Chapter 11 trustee. Wachovia Bank National Association, the Chapter 11 trustee, and Steven J. Reisman as post-confirmation representative of the bankruptcy estate of 360networks (USA) Inc. signed a petition that put Mr. Dreier into bankruptcy under Chapter 7 on Jan. 26, 2009 (Bankr. S.D.N.Y. Case No. 09-10371). Mr. Dreier, 60, pleaded guilty to fraud and other charges in May 2009. The scheme to sell $700 million in fake notes unraveled in late 2008. Mr. Dreier is serving a 20-year sentence in a federal prison in Minneapolis. DRYSHIPS INC: Buys Majority of OceanFreight Shares for $33.7-Mil. ----------------------------------------------------------------- DryShips Inc. announced that it acquired 3,000,856 shares of OceanFreight Inc. The shares were acquired from entities controlled by Mr. Anthony Kandylidis, the CEO of OceanFreight, under a purchase agreement entered into on July 26, 2011. These shares represent a majority of the outstanding shares of OceanFreight. The consideration paid by DryShips for each OceanFreight share consisted of (x) $11.25 in cash and (y) 0.52326 shares of common stock of Ocean Rig UDW Inc, par value of $0.01 per share, with cash paid in lieu of fractional shares. The total consideration paid for those shares was $33,759,671 in cash and 1,570,226 shares of Ocean Rig common stock. The Ocean Rig shares so transferred were outstanding shares held by DryShips. As a result of this transaction, DryShips' percentage ownership of Ocean Rig was reduced from approximately 78% to approximately 77%. DryShips has agreed to vote the OceanFreight shares that it acquired in favor of the merger of OceanFreight with a subsidiary of DryShips, as contemplated by the merger agreement signed by DryShips and OceanFreight on July 26, 2011. DryShips holds sufficient OceanFreight shares to approve the merger. In that merger, DryShips will acquire the remaining outstanding shares of OceanFreight for per share consideration consisting of $11.25 in cash and 0.52326 shares of Ocean Rig, with cash paid in lieu of fractional shares. This is the same per share consideration that DryShips paid for the shares it acquired from entities controlled by Mr. Anthony Kandylidis. The merger is expected to close in the fourth quarter of 2011. About DryShips Inc. Based in Greece, DryShips Inc. -- http://www.dryships.com/-- -- owns and operates drybulk carriers and offshore oil deep water drilling units that operate worldwide. As of Sept. 10, 2010, DryShips owns a fleet of 40 drybulk carriers (including newbuildings), comprising 7 Capesize, 31 Panamax and 2 Supramax, with a combined deadweight tonnage of over 3.6 million tons and 6 offshore oil deep water drilling units, comprising of 2 ultra deep water semisubmersible drilling rigs and 4 ultra deep water newbuilding drillships. DryShips's common stock is listed on the NASDAQ Global Select Market where it trades under the symbol "DRYS". On Nov. 25, 2010, DryShips Inc. entered into a waiver letter for its US$230.0 million credit facility dated Sept. 10, 2007, as amended, extending the waiver of certain covenants through Dec. 31, 2010. In its audit report on the Company's financial statements for the year ended Dec. 31, 2010, Deloitte, Hadjipavlou Sofianos & Cambanis S.A., noted that the Company's inability to comply with financial covenants under its original loan agreements as of Dec. 31, 2009, its negative working capital position and other matters raise substantial doubt about its ability to continue as a going concern. The Company's balance sheet at March 31, 2011, showed US$6.99 billion in total assets and US$3.04 billion in total liabilities. DYNEGY INC: Douglas Hirsch Discloses 9.99% Equity Stake ------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Douglas A. Hirsch and his affiliates disclosed that they beneficially own 12,226,500 shares of common stock of Dynegy Inc. representing 9.99% of the shares outstanding. A full-text copy of the regulatory filing is available at no charge at http://is.gd/bIAcu7 About Dynegy Inc. Through its subsidiaries, Houston, Texas-based Dynegy Inc. (NYSE:DYN) -- http://www.dynegy.com/-- produces and sells electric energy, capacity and ancillary services in key U.S. markets. The power generation portfolio consists of approximately 12,200 megawatts of baseload, intermediate and peaking power plants fueled by a mix of natural gas, coal and fuel oil. The Company's balance sheet at June 30, 2011, showed $9.79 billion in total assets, $7.26 billion in total liabilities, and $2.52 billion in total stockholders' equity. Failed Sale The Troubled Company Reporter has chronicled Dynegy's attempts to sell itself. In August 2010, Dynegy struck a deal to be acquired by an affiliate of The Blackstone Group at $4.50 a share or roughly $4.7 billion. That offer was raised to $5.00 a share in November. Through Carl Icahn and investment fund Seneca's efforts, shareholders thumbed down both offers. In December 2010, an affiliate of Icahn commenced a tender offer to purchase all of the outstanding shares of Dynegy common stock for $5.50 per share in cash, or roughly $665 million in the aggregate. In February 2011, Icahn Enterprises L.P. terminated the proposed merger agreement with the Company after it failed to garner the required number of shareholder votes. Goldman, Sachs & Co. and Greenhill & Co., LLC, served as financial advisors and Sullivan & Cromwell LLP served as legal counsel to Dynegy on the sale efforts. Bankruptcy Warning Dynegy warned shareholders in March it might be forced into bankruptcy if it is unable to renegotiate the terms of its existing debt. Ernst & Young LLP, in Houston, said Dynegy projects that it is likely that it will not be able to comply with certain debt covenants throughout 2011. "This condition and its impact on Dynegy Inc.'s liquidity raises substantial doubt about Dynegy Inc.'s ability to continue as a going concern." * * * In July 2011, Moody's downgraded Dynegy Holdings' probability of default rating to 'Ca' from 'Caa3'. "The downgrade of DHI's PDR and senior unsecured notes to Ca reflects the increased likelihood of a distressed debt exchange transaction occurring within the next several months following announcement of a corporate reorganization that seeks to modify asset ownership within DHI through the formation of several wholly-owned subsidiaries", said A.J. Sabatelle, Senior Vice President of Moody's. "Separate financing arrangements being established at these subsidiaries will have annual limits placed on the amount of cash flow that can be paid to their indirect parent, which Moody's believes raises default prospects for DHI's senior unsecured notes and the company's lease", added Mr. Sabatelle. DYNEGY INC: Unit Offers to Purchase Outstanding 9% Secured Bonds ---------------------------------------------------------------- Dynegy Inc. announced that its wholly-owned indirect subsidiary, Sithe/Independence Funding Corporation, has commenced a cash tender offer to purchase any and all of Sithe's outstanding $191,687,012 in aggregate principal amount of 9% Secured Bonds due 2013. In connection with the tender offer, Sithe is also soliciting consents from the registered holders of the Notes to certain proposed amendments to the indenture governing the Notes, including the (i) elimination of certain of the restrictive covenants, certain events of default applicable to the Notes and certain other provisions contained in the Indenture and (ii) amendment of the satisfaction and discharge provisions of the Indenture. The tender offer is scheduled to expire at 11:59 p.m., New York City time, on Sept. 23, 2011, unless extended or earlier terminated by Sithe. The total consideration for each $1,000 principal amount of Notes validly tendered and accepted for payment will be $1,110.80, which includes a consent payment of $30 per $1,000 principal amount of Notes. In order to receive the Total Consideration, holders of Notes must validly tender (and not validly withdraw) their Notes and validly deliver (and not validly revoke) their corresponding Consents on or prior to 5:00 p.m., New York City time, on Sept. 9, 2011, unless extended or earlier terminated by Sithe. Holders of Notes who validly tender (and not validly withdraw) their Notes after the Consent Date and on or prior to the Expiration Date will only receive $1,080.80 per $1,000 principal amount of Notes, which is the Total Consideration minus the Consent Payment. In addition to the Total Consideration or the Purchase Price, as applicable, holders of Notes validly tendered and accepted for payment will receive accrued and unpaid interest on the Notes from the last interest payment date for the Notes to, but not including, the applicable day of payment of the Total Consideration or the Purchase Price, as applicable. Sithe expects that the initial payment date will be on or about Sept. 12, 2011, unless the Consent Date is extended by Sithe in its sole discretion. Sithe intends to fund the purchase of the Notes and payment of Consents with cash on hand. Sithe currently intends, on the initial payment date, to satisfy and discharge the Indenture and satisfy and discharge all Notes, although Sithe has no legal obligation to do so. Sithe has retained Credit Suisse Securities (USA) LLC to serve as the dealer manager for the tender offer and solicitation agent for the consent solicitation. Sithe has retained D.F. King & Co., Inc., to serve as the depositary and information agent for the tender offer and consent solicitation. About Dynegy Inc. Through its subsidiaries, Houston, Texas-based Dynegy Inc. (NYSE:DYN) -- http://www.dynegy.com/-- produces and sells electric energy, capacity and ancillary services in key U.S. markets. The power generation portfolio consists of approximately 12,200 megawatts of baseload, intermediate and peaking power plants fueled by a mix of natural gas, coal and fuel oil. Failed Sale The Troubled Company Reporter has chronicled Dynegy's attempts to sell itself. In August 2010, Dynegy struck a deal to be acquired by an affiliate of The Blackstone Group at $4.50 a share or roughly $4.7 billion. That offer was raised to $5.00 a share in November. Through Carl Icahn and investment fund Seneca's efforts, shareholders thumbed down both offers. In December 2010, an affiliate of Icahn commenced a tender offer to purchase all of the outstanding shares of Dynegy common stock for $5.50 per share in cash, or roughly $665 million in the aggregate. In February 2011, Icahn Enterprises L.P. terminated the proposed merger agreement with the Company after it failed to garner the required number of shareholder votes. Goldman, Sachs & Co. and Greenhill & Co., LLC, served as financial advisors and Sullivan & Cromwell LLP served as legal counsel to Dynegy on the sale efforts. Bankruptcy Warning Dynegy warned shareholders in March it might be forced into bankruptcy if it is unable to renegotiate the terms of its existing debt. The Company's balance sheet at June 30, 2011, showed $9.79 billion in total assets, $7.26 billion in total liabilities, and $2.52 billion in total stockholders' equity. Ernst & Young LLP, in Houston, said Dynegy projects that it is likely that it will not be able to comply with certain debt covenants throughout 2011. "This condition and its impact on Dynegy Inc.'s liquidity raises substantial doubt about Dynegy Inc.'s ability to continue as a going concern." * * * In July 2011, Moody's downgraded Dynegy Holdings' probability of default rating to 'Ca' from 'Caa3'. "The downgrade of DHI's PDR and senior unsecured notes to Ca reflects the increased likelihood of a distressed debt exchange transaction occurring within the next several months following announcement of a corporate reorganization that seeks to modify asset ownership within DHI through the formation of several wholly-owned subsidiaries", said A.J. Sabatelle, Senior Vice President of Moody's. "Separate financing arrangements being established at these subsidiaries will have annual limits placed on the amount of cash flow that can be paid to their indirect parent, which Moody's believes raises default prospects for DHI's senior unsecured notes and the company's lease", added Mr. Sabatelle. E-DEBIT GLOBAL: Dismisses C&H as Accountants -------------------------------------------- E-Debit Global Corp.'s previous independent accountant, Cordavano & Honeck., was dismissed. The report of C&H regarding the Company's financial statements for the fiscal years ended Dec. 31, 2009, and 2010, did not contain any adverse opinion or a disclaimer of opinion nor were they qualified or modified as to uncertainty, audit scope or accounting principles, except that such report on the Company's financial statements contained an explanatory paragraph in respect to uncertainty as to the Company's ability to continue as a going concern. During the year ended Dec. 31, 2010, and during the period from the end of the most recently completed fiscal quarter through to Aug. 23, 2011, the date of dismissal, there were no disagreements with C&H on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures, which disagreements, if not resolved to the satisfaction of C&H would have caused it to make reference to the subject matter of the disagreements in connection with its report on the financial statements for those years. About E-Debit Global Corporation E-Debit Global Corporation (WSHE) is a financial holding company in Canada at the forefront of debit, credit and online computer banking. Currently, the Company has established a strong presence in the privately owned Canadian banking sector including Automated Banking Machines (ABM), Point of Sale Machines (POS), Online Computer Banking (OCB) and E-Commerce Transaction security and payment. E-Debit maintains and services a national ABM network across Canada and is a full participating member of the Canadian INTERAC Banking System. We provided C&H with a copy of this Current Report on Form 8-K prior to its filing with the Securities and Exchange Commission, and requested that C&H furnish us with a letter addressed to the Commission stating whether it agrees with the statements made by us in this Current Report, and if not, stating the aspects with which it does not agree. Attached to this Current Report on Form 8-K is the letter provided by C&H. The Company reported a net loss of $1.15 million on $3.97 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.28 million on $3.64 million of revenue during the prior year. The Company's balance sheet at June 30, 2011, showed $1.91 million in total assets, $2.59 million in total liabilities, and a $681,160 total stockholders' deficit. As reported by the TCR on April 15, 2011, Cordovano and Honeck LLP, in Englewood, Colorado, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company has suffered recurring losses, has a working capital deficit at Dec. 31, 2010, and has an accumulated deficit of $4,457,079 as of Dec. 31, 2010. EASTBRIDGE INVESTMENT: Posts $341,100 Net Loss in 2nd Quarter ------------------------------------------------------------- EastBridge Investment Group Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $341,182 on $28,000 of revenues for the three months ended June 30, 2011, compared with a net loss of $369,772 on $0 revenue for the same period last year. The Company reported a net loss of $669,463 on $28,000 of revenues for the six months ended June 30, 2011, compared with a net loss of $1.4 million on $nil revenue for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $1.7 million in total assets, $1.9 million in total liabilities, and stockholders' equity of $237,752. As reported in the TCR on April 26, 2011, Tarvaran Askelson & Company, LLP, in Laguna Niguel, California, expressed substantial doubt about EastBridge Investment Group's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has incurred significant losses. A copy of the Form 10-Q is available at http://is.gd/wcUCWW Scottsdale, Arizona-based EastBridge Investment Group Corporation is one of a small group of United States companies solely concentrated in marketing business consulting services to closely held, small to mid-size Asian companies that require these services for expansion. In business sectors where EastBridge sees a unique opportunity for growth, EastBridge may form its own foreign subsidiaries with local partners to capture the opportunity. As of June 30, 2011, EastBridge was providing consulting services to 14 clients to assist them with the auditing and legal processes to become public companies in the United States and become listed on a U.S. stock exchange. Eastbridge is also assisting Cambium Learning, a NASDAQ listed company (symbol: ABCD), with locating potential joint venture business partners in China. EASTERN SECURITY: Reports $749,700 Net Income in 2nd Quarter ------------------------------------------------------------ Eastern Security and Protection Services, Inc., filed its quarterly report on Form 10-Q, reporting net income of $749,696 on $2.6 million of revenues for the three months ended June 30, 2011, compared with net income of $699,836 on $2.4 million of revenues for the same period last year. The Company reported net income of $2.2 million on $7.9 million of revenues for the six months ended June 30, 2011, compared with net income of $1.4 million on $4.4 million of revenues for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $15.5 million in total assets, $3.7 million in total liabilities, and stockholders' equity of $11.8 million. At June 30, 2011, the Company had cash and cash equivalents of $7,293 and negative cash flow from operations during the six months ended June 30, 2011. "These conditions raise substantial doubt about the Company's ability to continue as a going concern," the Company said in the filing. There was negative cash flow from operations of $20,583 for the six months ended June 30, 2011. "In order to fund operations in the next year, the Company will need to increase its revenue and operating cash flows. Achieving positive cash flows from operations depends on the Company's ability to generate and sustain significant increases in revenues from its traditional business. There can be no assurances that the Company will be able to generate sufficient revenues and gross profits to achieve positive cash flow in the future." A copy of the Form 10-Q is available at http://is.gd/ZwINEk Based in Shenyang, Liaoning, in the People's Republic of China, Eastern Security and Protection Services, Inc., provides designing, installing and testing services of security and safety systems. A majority of the Company's revenues is derived from the provision of surveillance and safety packaged solutions which include the products, installation and after-sale service maintenance to its customers. Presently, the Company has a small market share in Liaoning province. EINSTEIN MOOMJY: Meeting to Form Creditors Committee on Sept. 7 --------------------------------------------------------------- Roberta DeAngelis, United States Trustee for Region 3, will hold an organizational meeting on Sept. 7, 2011, at 10:00 a.m. in the bankruptcy case of Einstein Moomjy, Inc. The meeting will be held at: United States Trustee's Office One Newark Center 1085 Raymond Blvd. 14th Floor, Room 1401 Newark, NJ 07102 The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' cases. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. About Einstein Moomjy 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. EMERALD CASINO: Trustee's Suit v. D&Os Survives Dismissal Bid ------------------------------------------------------------- Bankruptcy Judge Eugene R. Wedoff denied a motion for summary judgment filed by the defendants in the lawsuit, FRANCES GECKER, not individually but solely as chapter 7 trustee for the bankruptcy estate of Emerald Casino, Inc., v. DONALD F. FLYNN, KEVIN F. FLYNN, JOHN P. McMAHON, JOSEPH P. McQUAID, KEVIN D. LARSON, WALTER P. HANLEY and PEER PEDERSEN, Adv. Proc. No. 08 A 00972 (Bankr. N.D. Ill.). Emerald's bankruptcy case (Bankr. N.D. Ill. Case No. 02-22977) began in 2002 and went forward under Chapter 11 of the Bankruptcy Code. In 2007, Emerald's bankruptcy case was converted to one under Chapter 7, and the United States Trustee appointed Frances Gecker as the Chapter 7 trustee. Prior to the conversion of the case, in October 2007, a group of individuals who had invested in Emerald -- Payton Plaintiffs -- filed a complaint in the Circuit Court of Cook County, Illinois against several defendants involved in Emerald's management, except Peer Pedersen. The state court complaint set out seven counts asserting breach of contract, common law and statutory fraud, and conspiracy. After the bankruptcy case was converted, the trustee obtained court approval of a settlement with the Payton Plaintiffs. The Payton Plaintiffs assigned their claims against the defendants to the trustee, and in return they received the right to share in any recovery that the trustee obtained either on their claims or on any claims that the trustee asserted on behalf of the Emerald bankruptcy estate against the same defendants. In December 2008, the trustee removed the state court complaint to the bankruptcy court and amended the complaint to include additional claims of the estate. The defendants in the bankruptcy complaint obtained dismissal of the state court complaint, and they now argue that the state court dismissal precludes the proceeding in bankruptcy court. The basis for the defendants' summary judgment motion is res judicata. In an Aug. 26, 2011 Memorandum of Decision, Judge Wedoff said res judicata would bar the complaint in this bankruptcy case if, inter alia, the claims asserted are identical to those finally adjudicated by the state court. However, the defendants cannot make that showing. They are judicially estopped from contending that the claims in the two proceedings are the same because they previously succeeded in arguing that the claims are fundamentally different. Moreover, even if the claims should otherwise have been adjudicated in a single case, because the defendants themselves sought to split the claims between two courts, an established exception to res judicata requires that the trustee be allowed to pursue her claims separately on behalf of the Emerald estate. A copy of the Court's decision is available at http://is.gd/82tKUS from Leagle.com. ENERGY EDGE: Earns $72,300 Net Income in 2nd Quarter ---------------------------------------------------- Energy Edge Technologies Corporation filed its quarterly report on Form 10-Q, reporting net income of $72,310 on $285,922 of contract revenues for the three months ended June 30, 2011, compared with a net loss of $390,409 on $264,765 of contract revenues for the comparable period last year. The Company reported a net loss of $80,677 on $495,568 of contract revenues for the six months ended June 30, 2011, compared with a net loss of $401,098 on $576,224 of contract revenues for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $1.0 million in total assets, $729,731 in total liabilities, and stockholders' equity of $306,902. Silberstein Ungar, PLLC, in Bingham Farms, Michigan, expressed substantial doubt about Energy Edge Technologies' ability to continue as a going concern. The independent auditors noted that the Company has limited working capital, and has incurred a significant loss from operations. A copy of the Form 10-Q is available at http://is.gd/xLkAnR Bridgewater, N.J.-based Energy Edge Technologies Corporation provides energy engineering and services specializing in the development and implementation of advanced, turnkey projects to reduce energy losses and increase the efficiency of new and existing buildings. ENFIN ENTERPRISES: Case Summary & 10 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Enfin Enterprises, Inc. dba Chez Pierre 1215 Thomasville Road Tallahassee, FL 32303 Bankruptcy Case No.: 11-40689 Chapter 11 Petition Date: August 25, 2011 Court: United States Bankruptcy Court Northern District of Florida (Tallahassee) Debtor's Counsel: Thomas B. Woodward, Esq. P.O. Box 10058 Tallahassee, FL 32302 Tel: (850) 222-4818 Fax: (850) 561-3456 E-mail: woodylaw@embarqmail.com Scheduled Assets: $1,142,978 Scheduled Debts: $2,040,370 A list of the Company's 10 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flnb11-40689.pdf The petition was signed by Eric Favier, president. ENTREMED INC: Posts $1.7 Million Net Loss in Q2 Ended June 30 ------------------------------------------------------------- EntreMed, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $1.7 million on $8,852 of revenue for the three months ended June 30, 2011, compared with a net loss of $4.9 million on $nil revenue for the same period last year. The Company reported a net loss of $4.3 million on $8,852 of revenue for the six months ended June 30, 2011, compared with a net loss of $7.1 million on $0 revenue for the same period in 2010. The Company's balance sheet at June 30, 2011, showed $4.1 million in total assets, $1.3 million in total liabilities, all current, and stockholders' equity of $2.8 million. As reported in the TCR on April 6, 2011, Reznick Group, P.C., in Vienna, Va., expressed substantial doubt about EntreMed's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has incurred recurring operating losses and negative cash flows from operations. A copy of the Form 10-Q is available at http://is.gd/bgZcjd Rockville, Md.-based EntreMed, Inc. (Nasdaq: ENMD) -- http://www.entremed.com/-- is a clinical-stage pharmaceutical company committed to developing ENMD-2076, a selective angiogenic kinase inhibitor, for the treatment of cancer. ENMD-2076 is currently in a multi-center Phase 2 study in ovarian cancer and in several Phase 1 studies in solid tumors, multiple myeloma, and leukemia. EPICEPT CORP: Files Form S-3, Registers $25MM Common Shares ----------------------------------------------------------- EpiCept Corporation filed with the U.S. Securities and Exchange Commission a Form S-3 registration statement relating to the offer and sale, from time to time, of $25 million worth of common shares. The Company's common stock is dual-listed on The Nasdaq Capital Market and the Nasdaq OMX Stockholm Exchange under the ticker symbol "EPCT." The last reported sale price of the Company's common stock on Aug. 24, 2011 was $0.45 per share. A full-text copy of the Form S-3 registration statement is available for free at http://is.gd/94A8Fx About EpiCept Corporation Tarrytown, N.Y.-based EpiCept Corporation (Nasdaq and Nasdaq OMX Stockholm Exchange: EPCT) -- http://www.epicept.com/-- is focused on the development and commercialization of pharmaceutical products for the treatment of cancer and pain. The Company's lead product is Ceplene(R), approved in the European Union for the remission maintenance and prevention of relapse in adult patients with Acute Myeloid Leukemia (AML) in first remission. In the United States, a pivotal trial is scheduled to commence in 2011. The Company has two other oncology drug candidates currently in clinical development that were discovered using in-house technology and have been shown to act as vascular disruption agents in a variety of solid tumors. The Company's pain portfolio includes EpiCept(TM) NP-1, a prescription topical analgesic cream in late-stage clinical development designed to provide effective long-term relief of pain associated with peripheral neuropathies. The Company reported a net loss of $15.54 million on $994,000 of revenue for the year ended Dec. 31, 2010, compared with a net loss of $38.81 million on $414,000 of revenue during the prior year. The Company's balance sheet at June 30, 2011, showed $16.84 million in total assets, $26.57 million in total liabilities, and a $9.72 million total stockholders' deficit. The Company's recurring losses from operations and the Company's stockholders' deficit raise substantial doubt about its ability to continue as a going concern and, as a result, the Company's independent registered public accounting firm, Deloitte & Touche LLP, in Parsippany, New Jersey, included an explanatory paragraph in its report on the Company's consolidated financial statements for the year ended Dec. 31, 2010, which was included in our Annual Report on Form 10-K, with respect to this uncertainty. ESTATE FINANCIAL: Bryan Cave Battles $100MM Malpractice Suits ------------------------------------------------------------- Samuel Howard at Bankruptcy Law360 reports that Bryan Cave LLP on Friday challenged a California bankruptcy judge's refusal to let the firm withdraw its claims for $280,000 in fees in Estate Financial Inc.'s Chapter 11 cases now that it faces $100 million malpractice suits from trustees for allegedly enabling the fraud that ruined the lender and put its founders in jail. About Estate Financial Estate Financial, Inc. -- http://www.estatefinancial.com/-- is a California corporation that had been a license real estate brokerage firm since the later 1980's. EFI solicited funding for, and arranged and made, loans secured by various real property. EFI also was the sole manager of Estate Financial Mortgage Fund LLC (EFMF), a California limited liability company that was organized for the purpose of investing in and funding loans originated by EFI which were secured by first deeds of trust encumbering commercial and real estate located primarily in California and has been funding such mortgage loans since 2002. Five creditors of EFI filed an involuntary Chapter 11 petition against the real estate broker on June 25, 2008 (Bankr. C.D. Calif. Case Number 08-11457). Estate Financial Inc. consented to the bankruptcy filing on July 16, 2008. Robert B. Orgel, Esq., at Pachulski Stang Ziehl & Jones LLP, and William C. Beall, Esq., at Beall and Burkhardt, represent the Debtor as counsel. A Chapter 11 trustee, Thomas P. Jeremiassen, was appointed by the Court on July 23, 2008. Robyn B. Sokol, Esq., and Steven T. Gubner, Esq., at Ezra Brutzkus & Gubner, represent the official committee of unsecured creditors as counsel. In its schedules, Estate Financial disclosed total assets of $27,428,550, and total debts of $7,316,755. EVERGREEN ENERGY: Inks Sales Agency Agreement with Lazard Capital ----------------------------------------------------------------- Evergreen Energy Inc. has entered into a Sales Agency Agreement, dated Aug. 24, 2011, with Lazard Capital Markets LLC, under which it may, at the Company's discretion, from time to time sell up to a maximum of $10 million of its shares of common stock through an "at-the-market" program. Ilyas Khan, Evergreen Energy Chairman, commented, "The ATM Program provides Evergreen with necessary working capital and is tailored appropriately to our needs. The facility gives the Company both discretion and flexibility in addressing those financing needs, while addressing concerns about our balance sheet requirements. We are once again pleased to be working with Lazard, as our agent and advisor in the transaction. I would also advise that we continue to look forward to the anticipated proceeds from the sale of the assets of our subsidiary, Landrica Development Company, and potential proceeds from the sale of the boiler, which we are currently marketing for sale." Lazard Capital Markets LLC will act as the Company's exclusive sales agent for any sales made under the ATM Program. The Shares will be sold by means of ordinary brokers' transactions on the NYSE Arca at market prices prevailing at the time of a sale of the Shares or at prices negotiated with the Agent. As a result, prices may vary as between purchasers and during the term of the offering. The Company is not required to sell any of the reserved shares at any time during the term of the ATM Program, which extends until Jan. 18, 2013. The Company intends to use the net proceeds from any sales under the ATM Program for working capital and general corporate purposes, including debt service, and to satisfy a portion of the payments due under the Company's settlement agreement in the Cook & Bitonti litigation. In connection with the ATM Program, the Company has filed a prospectus supplement to its registration statement, dated Dec. 31, 2009, and declared effective by the SEC on Jan. 19, 2010, with the United States Securities and Exchange Commission to enable the offering of common stock. About Evergreen Energy Evergreen Energy Inc. has developed two, proprietary, patented, and green technologies: the GreenCert(TM) suite of software and services and K-Fuel(R). GreenCert, which is owned exclusively by Evergreen, is a science-based, scalable family of environmental intelligence solutions that quantify process efficiency and greenhouse gas emissions from energy, industrial and agricultural sources and may be used to create verifiable emission reduction credits. K-Fuel technology significantly improves the performance of low-rank coals, yielding higher efficiency and lowering emissions. The Company reported a net loss of $21.02 million on $403,000 of total operating revenue for the year ended Dec. 31, 2010, compared with a net loss of $58.53 million on $423,000 of total operating revenue during the prior year. Hein & Associates LLP, in Denver, Colo., expressed substantial doubt about Evergreen Energy's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and has had recurring cash used in operations. The Company's balance sheet at June 30, 2011, showed $24.54 million in total assets, $21.52 million in total liabilities, $2,000 in preferred stock, and $3.02 million in total stockholders' equity. EVERGREEN SOLAR: Seeks to Employ Bingham McCutchen as Counsel ------------------------------------------------------------- Evergreen Solar, Inc., asks the U.S. Bankruptcy Court for the District of Delaware for authority to employ Bingham McCutchen LLP as lead restructuring counsel effective as of the Petition Date. Bingham McCutchen's services to the Debtor include: a. advising the Debtor with respect to its powers and duties as debtor in possession in the continued management and operation of its business and properties; b. advising and consulting on the conduct of the chapter 11 case, including all of the legal and administrative requirements of operating in chapter 11; c. attending meetings and negotiating with representatives of the creditors and other parties in interest; d. taking all necessary action to protect and preserve the Debtor's estate, including prosecuting actions on the Debtor's behalf, defending any action commenced against the Debtor and representing the Debtor's interests in negotiations concerning litigation in which the Debtor is involved, including objections to claims filed against the Debtor's estate; e. preparing all pleadings, including motions, applications, answers, orders, reports and papers necessary or otherwise beneficial to the administration of the Debtor's estate; f. representing the Debtor in connection with obtaining authorized use of cash collateral; g. advising the Debtor in connection with any potential sale of its assets or business; h. appearing before the Court and any appellate courts to represent the interests of the Debtor's estate; i. consulting with the Debtor regarding tax, environmental, employment, pension, real estate and other matters; j. taking any necessary action on behalf of the Debtor to negotiate, prepare on behalf of the Debtor and obtain approval of a Chapter 11 plan and all documents related thereto; and k. performing all other necessary or otherwise beneficial legal services for the Debtor in connection with the prosecution of the chapter 11 case, including: (i) analyzing the Debtor's leases and contracts and the assumptions, rejections or assignments thereof (ii) analyzing the validity of liens against the Debtor; and (iii) advising the Debtor on corporate and litigation matters. The Debtor will pay Bingham McCutchen according to these hourly rates, in addition to necessary out-of-pocket expenses: Partners $605 to $1,095 Of Counsel $425 to $1,085 Counsel/Associates $375 to $730 Paraprofessionals $135 to $390 Staff Attorneys $185 to $320 Ronald J. Silverman, Esq., a partner at Bingham McCutchen, assures the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. . About Evergreen Solar Evergreen Solar, Inc. -- http://www.evergreensolar.com/-- develops, manufactures and markets String Ribbon solar power products using its proprietary, low-cost silicon wafer technology. The Company's patented wafer manufacturing technology uses significantly less polysilicon than conventional processes. Evergreen Solar's products provide reliable and environmentally clean electric power for residential and commercial applications globally. The Marlboro, Mass.-based Company filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 11-12590) on Aug. 15, 2011, before Judge Mary F. Walrath. The Company's balance sheet at April 2, 2011, showed $373,972,000 in assets, $455,506,000 in total liabilities, and a stockholders' deficit of $81,534,000. Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as co-counsel. Zolfo Cooper LLC is the financial advisor. Epiq Bankruptcy Solutions has been tapped as claims agent. In conjunction with the Chapter 11 filing, the Company entered into a restructuring support agreement with certain holders of more than 70% of the outstanding principal amount of the Company's 13% convertible senior secured notes. As part of the bankruptcy process the Company will undertake a marketing process and will permit all parties to bid on its assets, as a whole or in groups pursuant to 11 U.S.C. Sec. 363. An entity formed by the supporting noteholders, ES Purchaser, LLC, entered into an asset purchase agreement with the Company to serve as a "stalking-horse" and provide a "credit-bid" pursuant to the Bankruptcy Code for assets being sold. The supporting noteholders are represented by Michael S. Stainer, Esq., and Natalie E. Levine, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York. EVERGREEN SOLAR: Taps Hilco Industrial as Marketing & Sales Agent ----------------------------------------------------------------- Evergreen Solar, Inc., asks the U.S. Bankruptcy Court for the District of Delaware for authority to employ Hilco Industrial LLC as exclusive marketing and sales agent, effective as of the Petition Date. The Debtor needs Hilco Industrial to: * develop an advertising and marketing plan for the Debtor's assets; * implement the advertising and marketing plan as deemed necessary by Hilco to maximize net recovery on the assets; * prepare for the sale of the Assets, including gathering specifications and photographs for pictorial brochures; * make the assets available for viewing by potential buyers on an appointment-only basis; * work with the Debtor for the sale of assets either through a negotiated sale or auction for cash to the highest bidder "as is," "where is," and in accordance with the terms of the AMA; * work with the Debtor to set up a mutually acceptable procedure for collecting, investing (if any), protecting and disbursing purchaser deposits and sales proceeds, in one or more accounts financial institutions reasonably acceptable to both parties, in compliance with applicable sales, use and other tax laws and regulations and with the rights of the Debtor's creditors, which account(s) may be opened with a third party escrow per a mutually agreeable escrow agreement; * submit a complete auction report to the Debtor within three weeks after the collection of funds from the auction; * Hilco will coordinate the site clearance of the sold assets. The removal costs of the sold Assets will be the responsibility of the buyers and not the Debtor. Hilco will first attempt to sell all the Assets and any Asset that remains unsold, Hilco will then attempt to have unsold Assets removed at no cost to the Debtor. Any unsold Asset that requires a cost for removal, Hilco will obtain quotes for the cost of removal and then submit to the Debtor for approval. Hilco will supervise the removal and pay any approved costs from sales proceeds; and * certain additional services. Under an asset marketing agreement, Hilco Industrial will engage in the a systematic marketing and sales process, consisting of these four phases or options, with the timing and approach to each phase to be mutually agreed by Hilco and the Debtor: -- Phase One: Turn-Key Sale of the Assets along with a sublease, assignment or Company purchase then sale of the Facility; -- Phases Two and Three: Private Sales/Liquidation of the Assets as complete lines and components thereof; and -- Phase Four: WebCast Auction Sale for balance of the Assets, if required. The Debtor will pay Hilco Industrial according to these plans: (a) Phase I Commission: Hilco will receive a one-time commission based on the gross proceeds from the sale of the Assets or the Facility in accordance with a schedule, in the event of a Phase 1 sale of the Assets. "Gross Proceeds" will mean the aggregate cash or non-cash consideration received by the Debtor as consideration for the Assets and sublease, assignment or Debtor purchase then sale of Facility, if applicable, and subject to the carve-outs for certain third parties and their clients. The amounts payable will be paid in a lump sum at closing for the applicable Assets. Gross Proceeds Commission to Hilco -------------- ------------------- $0 to $65,000,000 5% $65,000,001 to $75,000,000 6% $75,000,001 and over 7.5% Phase I Carveouts: Before executing the AMA, the Debtor had been in discussions with these companies regarding a potential sale or sales: AUO Solar, Sovello, and Evirotech, or any of the owned subsidiaries of these entities and any entity wholly owned by these entities created for the purpose of consummating a transaction to purchase an Asset. If any of the above listed or described companies purchases Assets, Hilco's commission will be calculated as: Gross Proceeds Commission to Hilco -------------- ------------------- $0 to $65,000,000 1.5% $65,000,001 to $75,000,000 5% (b) Phase II through IV Commission: Alternatively, in the event of sales of the Assets under Phase II & III or Phase IV, then, in total consideration of its services and obligations, subject to the rebate obligations above, Hilco will be entitled to charge and receive for its own account an industry standard gross buyer's premium in connection with the sale of the Assets of 15% for Assets that are sold or auctioned. For purposes of clarification, the Buyer's Premium is a fee charged in addition to the sale price and is paid by the buyer of the Asset or Assets. Such Buyer's Premium may be segregated from the process of collection of proceeds from the applicable buyer(s) as mutually agreed by the Parties, and Hilco will receive the Buyer's Premium amounts net of portions payable to the Debtor. The Debtor shall be entitled to receive portions of the collected Buyer's Premiums in accordance with this schedule: Gross Proceeds Portion to Debtor Net to Hilco -------------- ----------------- ------------ $0.00 to $20,000,000 5% 10% $20,000,001 to $25,000,000 3% 12% $25,000,001 to $30,000,000 2% 13% $30,000,001 and over 1% 14% In the event the Facility, including the leasehold interest, is sold in Phase II through IV, Hilco will earn a fee equal to 5% of the Gross Sale Proceeds (6% to the extent there is a cooperating broker involved). For purposes hereof, "Gross Sale Proceeds" will mean the aggregate cash or non-cash consideration received by the Debtor in consideration of the Facility, including the leasehold interest. Section IV.D of the AMA will be amended to include: "The Debtor shall reimburse Hilco for all reasonable and customary expenses incurred in connection with the sale of the Facility up to $25,000, provided that, Hilco shall not incur any expenses without first obtaining the Debtor's consent." Hilco assures the Court that it is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Evergreen Solar Evergreen Solar, Inc. -- http://www.evergreensolar.com/-- develops, manufactures and markets String Ribbon solar power products using its proprietary, low-cost silicon wafer technology. The Company's patented wafer manufacturing technology uses significantly less polysilicon than conventional processes. Evergreen Solar's products provide reliable and environmentally clean electric power for residential and commercial applications globally. The Marlboro, Mass.-based Company filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 11-12590) on Aug. 15, 2011, before Judge Mary F. Walrath. The Company's balance sheet at April 2, 2011, showed $373,972,000 in assets, $455,506,000 in total liabilities, and a stockholders' deficit of $81,534,000. Ronald J. Silverman, Esq., and Scott K. Seamon, Esq., at Bingham McCutchen LLP, serve as general bankruptcy counsel to the Debtor. Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as co-counsel. Zolfo Cooper LLC is the financial advisor. Epiq Bankruptcy Solutions has been tapped as claims agent. In conjunction with the Chapter 11 filing, the Company entered into a restructuring support agreement with certain holders of more than 70% of the outstanding principal amount of the Company's 13% convertible senior secured notes. As part of the bankruptcy process the Company will undertake a marketing process and will permit all parties to bid on its assets, as a whole or in groups pursuant to 11 U.S.C. Sec. 363. An entity formed by the supporting noteholders, ES Purchaser, LLC, entered into an asset purchase agreement with the Company to serve as a "stalking-horse" and provide a "credit-bid" pursuant to the Bankruptcy Code for assets being sold. The supporting noteholders are represented by Michael S. Stainer, Esq., and Natalie E. Levine, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York. EVERGREEN SOLAR: Taps Zolfo Cooper as Financial Advisor ------------------------------------------------------- Evergreen Solar, Inc., asks the U.S. Bankruptcy Court for the District of Delaware for authority to employ Zolfo Cooper LLC as bankruptcy consultants and special financial advisors, effective as of the Petition Date. The Debtor needs Zolfo Cooper to perform these services: (a) advise and assist management in organizing the Debtor's resources and activities so as to effectively and efficiently plan, coordinate and manage the Chapter 11 process and communicate with customers, lenders, suppliers, employees, shareholders and other parties in interest; (b) assist management in designing and implementing programs to manage or divest assets, improve operations, reduce costs and restructure as necessary with the objective of rehabilitating the business; (c) advise the Debtor concerning interfacing with Official Committees, other constituencies and their professionals, including the preparation of financial and operating information required by such parties or the Bankruptcy Court; (d) advise and assist management in the development of a Chapter 11 Plan, including the related assumptions and rationale, along with other information to be included in the Disclosure Statement; (e) advise and assist the Debtor in forecasting, planning, controlling and other aspects of managing cash, and, if necessary, obtaining DIP or Exit financing; (f) advise the Debtor with respect to resolving disputes and otherwise managing the claims process; (g) advise and assist the Debtor in negotiating a Chapter 11 Plan with the various creditor and other constituencies; (h) as requested, render expert testimony concerning the feasibility of a Chapter 11 Plan and other matters that may arise in the case; and (i) provide other services as may be required by the Debtor. The Debtor assures the Court that Zolfo Cooper is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Evergreen Solar Evergreen Solar, Inc. -- http://www.evergreensolar.com/-- develops, manufactures and markets String Ribbon solar power products using its proprietary, low-cost silicon wafer technology. The Company's patented wafer manufacturing technology uses significantly less polysilicon than conventional processes. Evergreen Solar's products provide reliable and environmentally clean electric power for residential and commercial applications globally. The Marlboro, Mass.-based Company filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 11-12590) on Aug. 15, 2011, before Judge Mary F. Walrath. The Company's balance sheet at April 2, 2011, showed $373,972,000 in assets, $455,506,000 in total liabilities, and a stockholders' deficit of $81,534,000. Ronald J. Silverman, Esq., and Scott K. Seamon, Esq., at Bingham McCutchen LLP, serve as general bankruptcy counsel to the Debtor. Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as co-counsel. Zolfo Cooper LLC is the financial advisor. Epiq Bankruptcy Solutions has been tapped as claims agent. In conjunction with the Chapter 11 filing, the Company entered into a restructuring support agreement with certain holders of more than 70% of the outstanding principal amount of the Company's 13% convertible senior secured notes. As part of the bankruptcy process the Company will undertake a marketing process and will permit all parties to bid on its assets, as a whole or in groups pursuant to 11 U.S.C. Sec. 363. An entity formed by the supporting noteholders, ES Purchaser, LLC, entered into an asset purchase agreement with the Company to serve as a "stalking-horse" and provide a "credit-bid" pursuant to the Bankruptcy Code for assets being sold. The supporting noteholders are represented by Michael S. Stainer, Esq., and Natalie E. Levine, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York. FAITHSHARES CHRISTIAN: FaithShares Trust to Close & Liquidate Fund ------------------------------------------------------------------ After careful consideration, the Board of Trustees of the FaithShares Trust has determined to close and liquidate the FaithShares Christian Values Fund (FOC). The last day of trading of the Fund's shares on the NYSE Arca will be Aug. 31, 2011. Shareholders may sell Fund shares through a broker in the standard manner through this date. Customary brokerage charges may apply to such transactions. The Fund will be closed to new investors as of Aug. 31, 2011. Between Aug. 31 and Sept. 14, the Fund will be in the process of liquidating its portfolio assets. This will cause the Fund to increase its cash holdings and deviate from the investment objective and strategies stated in the prospectus. Shareholders remaining in the Fund on Sept. 14, 2011 will have their shares redeemed automatically on this date and will receive cash in an amount equal to the net asset value of their shares as of the close of business on Sept. 14, 2011. This amount includes any accrued capital gains and dividends. Shareholders remaining in the Fund on Sept. 14 will not be charged any transaction fees by the Fund. The net asset value of the Fund will reflect the costs of closing the Fund. FaithShares Funds are distributed by SEI Investments Distribution Co., which is not affiliated with FaithShares Advisors, LLC or any of its affiliates. FANNIE MAE: Funds Group Sues Conservator Over Recovery Limit ------------------------------------------------------------ American Bankruptcy Institute reports that a pension fund investors group sued Fannie Mae's conservator over a rule that could limit their recovery for damages stemming from securities fraud. About Fannie Mae Federal National Mortgage Association, aka Fannie Mae, is a government-sponsored enterprise that was chartered by U.S. Congress in 1938 to support liquidity, stability and affordability in the secondary mortgage market, where existing mortgage-related assets are purchased and sold. The Company's balance sheet at Dec. 31, 2010 showed $3.222 trillion in total assets, $3.224 trillion in total liabilities and a $2.52 billion total deficit. Fannie Mae has been under conservatorship, with the Federal Housing Finance Agency acting as conservator, since September 6, 2008. As conservator, FHFA succeeded to all rights, titles, powers and privileges of the company, and of any shareholder, officer or director of the company with respect to the company and its assets. The conservator has since delegated specified authorities to Fannie Mae's Board of Directors and has delegated to management the authority to conduct day-to-day operations. The U.S. Department of the Treasury owns Fannie Mae's senior preferred stock and a warrant to purchase 79.9% of its common stock, and Treasury has made a commitment under a senior preferred stock purchase agreement to provide Fannie with funds under specified conditions to maintain a positive net worth. FELIX INVESTMENTS: GE Capital Obtains Stay Relief ------------------------------------------------- Bankruptcy Judge Anthony J. Metz, III, granted the request of GE Capital Franchise Finance Corporation for relief from the automatic stay in the bankruptcy case of Felix Investments, Inc., so that GE may exercise its non-bankruptcy rights with respect to the leased properties located at (i) 2402 East 38th Street, Indianapolis, Marion County, Indiana, (ii) 3749 East Washington Street, Indianapolis, Marion County, Indiana, and (iii) 6014 East 46th Street, Indianapolis, Marion County, Indiana. Felix earns its revenue by collecting rent from subtenants who operate a Popeye's Chicken franchise on the premises. Felix is at least $50,000 in arrears on its rent owed to GE. Felix's subtenants are gone, having lost their Popeye's Chicken restaurant franchise and the stores have "gone dark". There has been no business activity in the Leased Properties since September 14, 2010. A copy of the Court's Aug. 26, 2011 Findings of Fact, Conclusions of Law and Order Granting Relief from Stay is available at http://is.gd/O7RLJqfrom Leagle.com. Felix Investments, Inc., filed for Chapter 11 (Bankr. S.D. Ind. Case No. 11-00178) on Jan. 10, 2011, listing under $1 million in assets and debts. A copy of the petition is available at no charge at http://bankrupt.com/misc/insb11-00178.pdf FIRST BANKS: Posts $18 Million Net Loss in 2nd Quarter ------------------------------------------------------ First Banks, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $18.0 million for the three months ended June 30, 2011, compared with a net loss of $65.0 million for the same period last year. The Company reported a net loss of $24.1 million for the six months ended June 30, 2011, compared with a net loss of $93.0 million for the same period of 2010. The Company recorded net interest income of $46.7 million and $95.2 million for the three and six months ended June 30, 2011, respectively, compared to $60.7 million and $123.0 million for the comparable periods in 2010. The Company's balance sheet at June 30, 2011, showed $6.919 billion in total assets, $6.610 billion in total liabilities, and stockholders' equity of $309.3 million. The Company and First Bank are subject to various regulatory capital requirements administered by the federal and state banking agencies. The Company did not meet the minimum regulatory capital standards established for bank holding companies by the Federal Reserve at June 30, 2011, and Dec. 31, 2010. At June 30, 2011, the Company's required and actual capital ratios were as follows: Actual Required Ratio Ratio Total capital (to risk-weighted assets): 3.38% 8.0% Tier 1 capital (to risk-weighted assets): 1.69% 4.0% Tier 1 capital (to average assets): 1.03% 4.0% First Bank was categorized as well capitalized at June 30, 2011, and Dec. 31, 2010, under the prompt corrective action provisions of the regulatory capital standards. A copy of the Form 10-Q is available at http://is.gd/mWvMb3 First Banks, Inc., is a registered bank holding company incorporated in Missouri in 1978 and headquartered in St. Louis, Missouri. The Company operate through its wholly owned subsidiary bank holding company, The San Francisco Company, or SFC, headquartered in St. Louis, Missouri, and SFC's wholly owned subsidiary bank, First Bank, also headquartered in St. Louis, Missouri. FIRST MARINER: Awaits Results of NASDAQ Listing Appeal ------------------------------------------------------ First Mariner Bancorp, on Aug. 25, 2011, received a letter from the NASDAQ Stock Market notifying the Company that the Company has not regained compliance with Nasdaq Listing Rule 5450(a)(1) within the 180-calendar-day extension previously granted by NASDAQ. Nasdaq Listing Rule 5450(a)(1) requires maintenance of a minimum bid price of $1.00 per share for continued inclusion on The NASDAQ Capital Market, and in connection with the transfer of the listing of the Company's common stock to The NASDAQ Capital Market on Feb. 23, 2011, the Company was granted an extension of 180 days, or until Aug. 22, 2011, within which to comply with NASDAQ's $1.00 minimum bid price requirement. The Aug. 25, 2011, notification further states that failure to regain compliance with Nasdaq Listing Rule 5450(a)(1) serves as an additional basis for delisting the Company's securities from The Nasdaq Stock Market. The Company has appealed the delisting determination to a NASDAQ Listing Qualifications Panel and a hearing was held on Aug. 25, 2011. The Company is awaiting the results of the hearing and expects to receive a ruling within 30 days. The Company's stock will continue to trade on the NASDAQ Capital Market during this time. About First Mariner Headquartered in Baltimore, Maryland, First Mariner Bancorp -- http://www.1stmarinerbancorp.com/-- is a bank holding company whose business is conducted primarily through its wholly owned operating subsidiary, First Mariner Bank, which is engaged in the general general commercial banking business. First Mariner was established in 1995 and has total assets in excess of $1.3 billion as of Dec. 31, 2010. "Quantitative measures established by regulation to ensure capital adequacy require the [First Mariner] Bank to maintain minimum amounts and ratios of total and Tier I capital to risk-weighted assets, and of Tier I capital to average quarterly assets," the Company said in the filing. "As of March 31, 2011, the Bank was "under-capitalized" under the regulatory framework for prompt corrective action." The Company's balance sheet at June 30, 2011, showed $1.16 billion in total assets, $1.17 billion in total liabilities, and a $13.42 million total stockholders' deficit. As reported in the TCR on April 4, 2011, Stegman & Company, in Baltimore, expressed substantial doubt about First Mariner Bancorp's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered recurring losses and has a limited capital base. Bankruptcy Warning As of June 30, 2011, First Mariner Bank's and the Company's capital levels were not sufficient to achieve compliance with the higher capital requirements they were required to meet by June 30, 2010. The failure to maintain these capital requirements could result in further action by their regulators. On Sept. 18, 2009, the Bank entered into an Agreement with the Federal Deposit Insurance Corporation and the Commissioner of Financial Regulation for the state of Maryland, pursuant to which it consented to the entry of an Order to Cease and Desist, which directs the Bank to (i) increase its capitalization, (ii) improve earnings, (iii) reduce nonperforming loans, (iv) strengthen management policies and practices, and (v) reduce reliance on noncore funding. The September Order required the Bank to adopt a plan to achieve and maintain a Tier I leverage capital ratio of at least 7.5% and a total risk-based capital ratio of at least 11% by June 30, 2010. We did not meet the requirements at June 30, 2010, December 31, 2010, or June 30, 2011. The failure to achieve these capital requirements could result in further action by its regulators. First Mariner currently does not have any capital available to invest in the Bank and any further increases to the Company's allowance for loan losses and operating losses would negatively impact the Company's capital levels and make it more difficult to achieve the capital levels directed by the FDIC and the Commissioner. Because the Company has not met all of the capital requirements set forth in the September Order within the prescribed timeframes, if the Company's revised capital plan is not approved or if the Company is not granted a waiver of those requirements, the FDIC and the Commissioner could take additional enforcement action against the Company, including the imposition of monetary penalties, as well as further operating restrictions. The FDIC or the Commissioner could direct the Company to seek a merger partner or possibly place the Bank in receivership. If the Bank is placed into receivership, the Company would cease operations and liquidate or seek bankruptcy protection. If the Company were to liquidate or seek bankruptcy protection, the Company does not believe that there would be assets available to holders of the capital stock of the Company. FLOORS-2-GO: Goes Into Administration, Lays Off 354 Workers ----------------------------------------------------------- Hardwood Floors reports that about 192 workers at the U.K.'s Floors-2-Go -- one of the UK's biggest wood flooring retailers -- were laid off after the company went into "administration" the previous day. The move is similar to the U.S.'s Chapter 11 bankruptcy proceeding. According to the report, at first, 354 jobs were at stake; however, the Company's appointed administrator sold 35 store outlets to an outfit called Nixon & Hope, which is led by two former Floors-2-Go managers: David Vizor and Parjinder Sangha. Hardwood Floors, citing report from the Telegraph, says the remaining customer orders are expected to be filled by Nixon & Hope, and that Floors-2-Go creditors should be repaid in full. FLURIDA GROUP: Reports $9,505 Net Income in 2nd Quarter ------------------------------------------------------- Flurida Group, Inc., filed its quarterly report on Form 10-Q, reporting net income of $9,505 on $4.0 million of revenues for the three months ended June 30, 2011, compared with net income of $91,811 on $3.3 million of revenues for the same period last year. The Company reported net income of $68,364 on $7.0 million of revenues for the six months ended June 30, 2011, compared with net income of $145,380 on $5.4 million of revenues for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $5.1 million in total assets, $3.5 million in total liabilities, all current, and stockholders' equity of $1.5 million. Enterprise CPAs, Ltd., in Chicago, Ill., expressed substantial doubt about Flurida Group's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that Company's operating history and its customer concentration may raise doubt about its ability to continue as a going concern. "If the Company is unable to generate significant revenue or secure financing, then the Company may be required to cease or curtail its operations." A copy of the Form 10-Q is available at http://is.gd/BPymZq Based in Chicago, Flurida Group, Inc., sells appliance parts in Asia, Europe, Australia, North and South America. The main products that the Company sells to these markets are icemakers, motors, ice water dispensing system, and appliance assemblies. is the sale of appliance parts in Asia, Europe, Australia, North and South America. The main products that the Company sells to these markets are icemakers, motors, ice water dispensing system, and appliance assemblies. These parts are manufactured in China by Zhong Nan Fu Rui Mechanical Electronics Manufacturing Co., Ltd., which is owned 100% by Mr. Jianfeng Ding, the President of the Flurida Group. FRISCO PS: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Frisco PS Hotel. Ltd. dba Holiday Express Inn & Suites 4220 Preston RD 6076 Osage Place Frisco, TX 75034 Bankruptcy Case No.: 11-42622 Chapter 11 Petition Date: August 25, 2011 Court: United States Bankruptcy Court Eastern District of Texas (Sherman) Debtor's Counsel: Michael J. Wiss, Esq. WISS & FREEMYER, LLP 11882 Greenvile Ave., Suite 111 Box 11 Dallas, TX 75243-3567 Tel: (972) 889-9050 Fax: (972) 889-1175 E-mail: mjwiss@hotmail.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/txeb11-42622.pdf The petition was signed by Pardeep K. Sharma, president of Frisco Hotel Corp., Debtor's general partner. FUSION TELECOMMUNICATIONS: Borrows $47,000 from Marvin Rosen ------------------------------------------------------------ Fusion Telecommunications International, Inc., on Aug. 19, 2011, borrowed $47,000 from Marvin S Rosen, a Director of the Company. This note (a) is payable on demand in full upon 10 days notice of demand from the lender, (b) bears interest on the unpaid principal amount at the rate of 3.25% per annum, and (c) grants the lender a collateralized security interest, pari passu with other lenders, in the Company's accounts receivable. The proceeds of this note are to be used primarily for general corporate purposes. About Fusion Telecommunications New York City-based Fusion Telecommunications International, Inc. (OTC BB: FSNN) is a provider of Internet Protocol ("IP") based digital voice and data communications services to corporations and carriers worldwide. The Company's balance sheet at June 30, 2011, showed $4.81 million in total assets, $14.33 million in total liabilities and a $9.52 million total stockholders' deficit. As reported by the TCR on April 26, 2011, Rothstein, Kass & Company, P.C., in Roseland, New Jersey, expressed substantial doubt about Fusion Telecommunications' ability to continue as a going concern. The independent auditors noted that the Company the Company has negative working capital balances, incurred negative cash flows from operations and net losses since inception, and has limited capital to fund future operations. Fusion Telecommunications reported a net loss of $5.8 million on $41.8 million of revenues for 2010, compared with a net loss of $9.6 million on $40.9 million of revenues for 2009. G&S LIVINGSTON: Taps Kosher & Company as Accountant --------------------------------------------------- G&S Livingston Realty Inc. asks the U.S. Bankruptcy Court for the Southern District of New York for permission to employ Koshers & Company as accountant. The Debtor tells the Court that the retention of an accountant is necessary and appropriate to assist and advise the Debtor in connection with all accounting and financial matters related to the Debtor's reorganization. The current hourly rate of partners of the firm is $350. The hourly rate charged for other professionals of the firm is $200. The Debtor assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. G&S Livingston Realty, Inc., in New York, filed for Chapter 11 bankruptcy (Bankr D. N.J. Case No. 11-31751) on July 21, 2011, Judge Morris Stern presiding. Stephen V. Falanga, Esq., at Connell LLP, serves as bankruptcy counsel. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Greg Wasser, president. G&S LIVINGSTON: Taps Stavitsky & Assoc. as Special Tax Counsel -------------------------------------------------------------- G&S Livingston Realty Inc. asks the U.S. Bankruptcy Court for the Southern District of New York for permission to employ Stavitsky & Associates LLC as its special tax appeal counsel. The firm will continue to prosecute the Debtor's tax appeals. There are currently five matters pending in the New Jersey Tax Court (Case Nos.: 010940-2007; 005637-2008; 007197-2009; 007186- 2009; 006550-2010). The firm will also provide material legal advice to the Debtor relating to these matters. According to the Debtor, the retention of the firm will enable the Debtor to maintain continuity with respect to the handling of issues relating to these matters and continue with the uninterrupted prosecution of the appeals. The firm will charge 25% of the amount of tax savings realized by the Debtor, plus reimbursement of filing fees and appraisal costs. The Debtor assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. G&S Livingston Realty, Inc., in New York, filed for Chapter 11 bankruptcy (Bankr D. N.J. Case No. 11-31751) on July 21, 2011, Judge Morris Stern presiding. Stephen V. Falanga, Esq., at Connell LLP, serves as bankruptcy counsel. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Greg Wasser, president. G&S LIVINGSTON: Hires Connell Foley as Bankruptcy Counsel --------------------------------------------------------- The U.S. Bankruptcy Court for the District of New Jersey has authorized G&S Livingston Realty, Inc., to employ Connell Foley LLP as counsel in connection with its Chapter 11 bankruptcy case and with the general legal needs of the Debtor during the duration of its bankruptcy case, inclusive of ongoing land use and litigation matters. Connell Foley will be compensated at its customary hourly rates. Connell Foley has provided legal services to the Debtor in the past and is currently representing the Debtor in its prosecution of a lawsuit for the enforcement of a rent guaranty. Connell Foley has also represented (and in certain cases continues to represent) certain of the Debtor's affiliated and unaffiliated creditors in other proceedings unrelated to the Debtor's bankruptcy case, including G&S Investors, Inc., PSE&G and RNK Capital LLC. G&S Livingston Realty, Inc., in New York, filed for Chapter 11 bankruptcy (Bankr D. N.J. Case No. 11-31751) on July 21, 2011, Judge Morris Stern presiding. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Greg Wasser, president. The Debtor filed together with its bankruptcy petition a prepackaged Chapter 11 Plan of Reorganization it negotiated with KABR Real Estate Investment Partners, LLC. The Plan contemplates full payment of the Debtor's allowed unsecured claims through a series of transaction with KABR and its related entities. G&S LIVINGSTON: Seeks to Employ Reed Smith as Tax Counsel --------------------------------------------------------- G&S Livingston Realty, Inc., seeks permission from the U.S. Bankruptcy Court for the District of New Jersey to employ Reed Smith LLP as its special corporate and tax counsel, nunc pro tunc to the Petition Date. Reed Smith will provide material legal advice to the Debtor relating to specialized corporate and tax matters that may arise in connection with the confirmation and effectuation of the Debtor's proposed Plan of Reorganization and represent the Debtor in connection with the consummation of the transactions contemplated by the Plan. The Debtor will pay Reed Smith according to its professionals' customary hourly rates: Title Rate per Hour ----- ------------- Partners $680 to $750 Associates $310 to $530 Paralegals $200 to $260 Michael Meyers will be retained at $750 per hour. The Debtor will also reimburse Reed Smith for expenses incurred. Gregg Wasser, president of the Debtor, disclosed that Reed Smith has provided legal services to the Debtor in the past, inclusive of providing tax and corporate advice to the Debtor's present bankruptcy. Reed Smith has also represented creditors of the Debtor in other unrelated proceedings. He added that as of the Petition Date, Reed Smith is a general unsecured creditor of the Debtor. Mr. Wasser maintains that Reed Smith does not represent or hold any interest adverse to the Debtor or the estate with respect to the matter for which the firm will be retained under Seciton 327(e) of the Bankruptcy Code. G&S Livingston Realty, Inc., in New York, filed for Chapter 11 bankruptcy (Bankr D. N.J. Case No. 11-31751) on July 21, 2011, Judge Morris Stern presiding. Stephen V. Falanga, Esq., at Connell LLP, serves as bankruptcy counsel. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Greg Wasser, president. The Debtor filed together with its bankruptcy petition a prepackaged Chapter 11 Plan of Reorganization it negotiated with KABR Real Estate Investment Partners, LLC. The Plan contemplates full payment of the Debtor's allowed unsecured claims through a series of transaction with KABR and its related entities. GALP GRAYRIDGE: Court Dismisses Chapter 11 Bankruptcy Case ---------------------------------------------------------- The Hon. Jeff Bohm of the U.S. Bankruptcy Court for the Southern District of Texas dismissed the Chapter 11 case of GALP Grayridge Limited Partnership at the behest of Judy A. Robbins, the United States Trustee for Region 7. The Court denied approval of Amended Disclosure Statement on May 16, 2011. The U.S. Trustee said the Debtor does not have the ability to reorganize, and appears to have abandoned prosecution of the case. About GALP Grayridge Houston, Texas-based GALP Grayridge Limited Partnership is a single asset real estate business entity. It owns these single asset real estate in Texas: C GALP Grayridge Limited Partnership - Chapter 11 (10-40007); C Vinings at West Oaks Apartments (512 units); C 15250 Grey Ridge Drive, Houston, TX 77082; and C NW quadrant of Harris County Toll Road and Hwy 6. GALP Grayridge filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Case No. 10-40007) on Nov. 1, 2010. Matthew Hoffman, Esq., at the Law Offices of Matthew Hoffman, P.C., serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. GB HERNDON: Court Slows Down Planned Probe Against Bank ------------------------------------------------------- Bankruptcy Judge S. Martin Teel, Jr., denied GB Herndon And Associates, Inc.'s emergency motion to compel a bank to produce documents in response to subpoena and to attend deposition. Instead, the Court gave the bank 30 days after service of the subpoena on it to respond. The court's order did not identify the bank, which is facing litigation with the Debtor. The judge said the Debtor's notice of deposition failed to comply with Fed. R. Civ. P. 30(b)(6) to apprise the bank of the matters for examination so that the bank would know who to designate to testify. Accordingly, the bank was not required to designate an individual to testify at the deposition. The subpoena also commanded production of documents within less than the 30 days allowed by Fed. R. Civ. P. 34 for responding to a request for production of documents. A copy of Judge Teel's Aug. 29, 2011 Memorandum Decision is available at http://is.gd/0r1gHLfrom Leagle.com. GB Herndon and Associates, Inc., filed for Chapter 11 bankruptcy (Bankr. D. D.C. Case No. 10-00945) on Sept. 24, 2010. GELT PROPERTIES: Taps Eisenberg Gold as Special Counsel ------------------------------------------------------- Gelt Properties LLC and its debtor-affiliates ask the U.S. Bankruptcy Court for the Eastern District of Pennsylvannia for permission to employ Eisenberg, Gold & Cettei P.C. as its special counsel to provide proper legal counsel to the Debtors with regard to defending against certain actions. The Debtors say they owe the firm $1,898 for legal services before it filed for bankruptcy. The Debtors assure the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Gelt Properties Based in Huntington Valley, Pennsylvania, Gelt Properties, LLC, and affiliate Gelt Financial Corporation borrow money from traditional lenders and make loans to commercial borrowers. They also acquire and manage real estate. Gelt Properties and Gelt Financial filed for (Bankr. E.D. Pa. Case Nos. 11-15826 and 11- 15826) on July 25, 2011. Judge Magdeline D. Coleman presides over the cases. Albert A. Ciardi, III, Esq., and Thomas Daniel Bielli, Esq., at Ciardi Ciardi & Astin, P.C., serve as the Debtors' bankruptcy counsel. In their separate petitions, the Debtors both estimated $10 million to $50 million in assets and debts. The petitions were signed by Uri Shoham, the Debtors' chief financial officer. GELT PROPERTIES: Taps Cohen And Foreman as Special Counsel ---------------------------------------------------------- Gelt Properties LLC and its debtor-affiliates ask the U.S. Bankruptcy Court for the Eastern District of Pennsylvania for permission to employ Cohen and Forman LLC as their special counsel to represent the Debtors' interest in the various pending legal matters. The Debtors say they have no outstanding fees owed to the firm. The Debtors assure the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Gelt Properties Based in Huntington Valley, Pennsylvania, Gelt Properties, LLC, and affiliate Gelt Financial Corporation borrow money from traditional lenders and make loans to commercial borrowers. They also acquire and manage real estate. Gelt Properties and Gelt Financial filed for (Bankr. E.D. Pa. Case Nos. 11-15826 and 11- 15826) on July 25, 2011. Judge Magdeline D. Coleman presides over the cases. Albert A. Ciardi, III, Esq., and Thomas Daniel Bielli, Esq., at Ciardi Ciardi & Astin, P.C., serve as the Debtors' bankruptcy counsel. In their separate petitions, the Debtors both estimated $10 million to $50 million in assets and debts. The petitions were signed by Uri Shoham, the Debtors' chief financial officer. GENERAL MOTORS: New GM's $450MM UAW Dispute Headed to Michigan -------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that General Motors Co., the formal name for new GM, won't be having the bankruptcy court rule on a $450 million dispute with the United Auto Workers Union. In sending the suit to Michigan, a bankruptcy judge in New York wrote a 28-page opinion where he said, "Frankly, I bring nothing to the table here." Mr. Rochelle recounts that the controversy traces its roots to 1999 when old GM, then formally named General Motors Corp., spun off parts maker Delphi Corp., which emerged from its own bankruptcy reorganization in 2009 after new GM brought assets from old GM. In the spinoff, old GM agreed to make a $450 million contribution to a trust providing retiree health benefits. After old GM sold the business, the union filed suit in Michigan in April 2010 demanding that new GM make the contribution. According to the report, the U.S. district judge in Michigan put the lawsuit on ice while U.S. Bankruptcy Judge Robert E. Gerber in New York ruled on a request by new GM that he take over the suit. Judge Gerber decided last week that his approval of the sale to new GM gave him the exclusive right to take over the union's lawsuit. Nonetheless, he declined to hear the case, saying the bankruptcy court had no "particular knowledge or expertise," such as "knowing what I intended" in approving the sale. Given that the dispute is between two non-bankrupt entities, Judge Gerber said it was proper for him to hear a suit only where the "New York bankruptcy court has a significant interest or that truly involves bankruptcy law or policy." Judge Gerber said it was also important that the lawsuit would have no effect old GM's bankrupt estate or its creditors' recovery. Judge Gerber, according to Mr. Rochelle, said the situation might have been different were it a case where the buyer purchased an asset free of a claim. Here, he said, both sides have good arguments based on the underlying documents. 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. GIORDANO'S ENTERPRISES: Firms Gauge Interest, Real Estate Assets ---------------------------------------------------------------- Dow Jones' DBR Small Cap reports that with a bankruptcy sale on the horizon, the Giordano's pizza chain formally announced that the company is up for sale along with a mish-mash of other assets, including six floors of office space atop its flagship restaurant in downtown Chicago and a 50-acre failed housing development near Disney World that sent the restaurant company's finances spiraling. About Giordano's Enterprises Chicago, Illinois-based Giordano's Enterprises, Inc., was founded in 1974 in Chicago, Illinois, by two Argentinean immigrants, Efren and Joseph Boglio. In 1988, John and Eva Apostolou purchased control of Giordano's. Although this casual dining eatery offers a broad array of fine Italian cuisine, it is primarily know for its "Chicago's World Famous Stuffed Pizza". At present, Giordano's operates six company owned stores in Chicagoland, four joint venture stores, and thirty-five franchisee locations. In addition, Giordano's operates Americana Foods, Inc., located in Mount Prospect, Illinois, that serves as the commissary for the majority of food products purchased by the Illinois locations. An affiliated real estate holding company, Randolph Partners, LP, owns 12 restaurant buildings that are leased to four of the company-owned locations, two of the joint venture locations and six of the franchisee locations. The other 33 locations are leased from third party landlords; two for the Giordano's locations, two for the joint venture locations and 29 for the franchise locations. Giordano's is the lessee and subleases the restaurant facility for 22 of the 29 franchise third party leases. JBA Equipment Finance, Inc, another affiliated entity, leases restaurant equipment packages to eight franchisee locations. Giordano's Enterprises and 26 affiliates filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Lead Case No. 11-06098) on Feb. 16, 2011. Six additional affiliates filed for Chapter 11 protection on Feb. 17, 2011. Michael L. Gesas, Esq., David A. Golin, Esq., Miriam R. Stein, Esq., and Kevin H. Morse, at Arnstein & Lehr, LLP, in Chicago, serve as the Debtors' bankruptcy counsel. Giordano's Enterprises disclosed $59,387 in assets and $45,538,574 in liabilities as of the Chapter 11 filing. Certain of the Debtors owe Fifth Third Bank not than $13,560,662, pursuant to loans and financial accommodations, and $31,927,998 under a business loan as of the Petition Date. Fifth Third has agreed to provide DIP financing of up to $35,983,563 to the Debtors. Philip V. Martino has been appointed as Chapter 11 trustee in the Debtors' bankruptcy cases, at the behest of the U.S. Trustee. Mr. Martino filed a $3,000,000 bond. GIORDANO'S ENTERPRISES: Hilco to Sell 14 Restaurant Properties -------------------------------------------------------------- Fourteen company-owned properties of Giordano's, the storied Chicago pizza restaurant chain, are now available for sale, either as a portfolio or individually. The properties include the chain's flagship restaurant and building located at 740 North Rush Street on Chicago's Gold Coast. Giordano's, a casual dining concept best known for its "World Famous Chicago Stuffed Pizza," filed for Chapter 11 bankruptcy relief in February, 2011. William Blair & Company and Hilco Real Estate were retained to advise the debtors. Bids are being solicited for the going-concern business as well as the real estate assets on a stand-alone basis. Properties are located in the Chicago area, Florida and Arizona. They include a mix of income producing restaurants and value-add real estate opportunities. Most locations are leased to the corporate entity or franchisees. The deadline for initial indications of interest is set for September 8, 2011. About Giordano's Enterprises Chicago, Illinois-based Giordano's Enterprises, Inc., was founded in 1974 in Chicago, Illinois, by two Argentinean immigrants, Efren and Joseph Boglio. In 1988, John and Eva Apostolou purchased control of Giordano's. Although this casual dining eatery offers a broad array of fine Italian cuisine, it is primarily know for its "Chicago's World Famous Stuffed Pizza". At present, Giordano's operates six company owned stores in Chicagoland, four joint venture stores, and thirty-five franchisee locations. In addition, Giordano's operates Americana Foods, Inc., located in Mount Prospect, Illinois, that serves as the commissary for the majority of food products purchased by the Illinois locations. An affiliated real estate holding company, Randolph Partners, LP, owns 12 restaurant buildings that are leased to four of the company-owned locations, two of the joint venture locations and six of the franchisee locations. The other 33 locations are leased from third party landlords; two for the Giordano's locations, two for the joint venture locations and 29 for the franchise locations. Giordano's is the lessee and subleases the restaurant facility for 22 of the 29 franchise third party leases. JBA Equipment Finance, Inc, another affiliated entity, leases restaurant equipment packages to eight franchisee locations. Giordano's Enterprises and 26 affiliates filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Lead Case No. 11-06098) on Feb. 16, 2011. Six additional affiliates filed for Chapter 11 protection on Feb. 17, 2011. Michael L. Gesas, Esq., David A. Golin, Esq., Miriam R. Stein, Esq., and Kevin H. Morse, at Arnstein & Lehr, LLP, in Chicago, serve as the Debtors' bankruptcy counsel. Giordano's Enterprises disclosed $59,387 in assets and $45,538,574 in liabilities as of the Chapter 11 filing. Certain of the Debtors owe Fifth Third Bank not than $13,560,662, pursuant to loans and financial accommodations, and $31,927,998 under a business loan as of the Petition Date. Fifth Third has agreed to provide DIP financing of up to $35,983,563 to the Debtors. Philip V. Martino has been appointed as Chapter 11 trustee in the Debtors' bankruptcy cases, at the behest of the U.S. Trustee. Mr. Martino filed a $3,000,000 bond. GREENHOUSE HOLDINGS: Posts $975,600 Net Loss in 2nd Quarter ----------------------------------------------------------- GreenHouse Holdings, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $975,631 on $929,723 of revenues for the three months ended June 30, 2011, compared with a net loss of $1.1 million on $1.6 million of revenues for the same period last year. The Company reported a net loss of $2.2 million on $2.4 million of revenues for the six months ended June 30, 2011, compared with a net loss of $2.0 million on $2.7 million of revenues for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $7.5 million in total assets, $4.9 million in total liabilities, and stockholders' equity of $2.6 million. As reported in the TCR on April 8, 2011, PKF, in San Diego, Calif., expressed substantial doubt about GreenHouse Holdings' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company had an accumulated deficit of $6,753,036, a net loss and net cash used in operations of $4,644,966 and $3,509,800, respectively, for the year ended Dec. 31, 2010. A copy of the Form 10-Q is available at http://is.gd/ztRW4S San Diego, Calif.-based GreenHouse Holdings, Inc. (OTC BB: GRHU) -- http://www.greenhouseintl.com/-- is a provider of energy efficiency and sustainable facilities solutions. The Company designs, engineers and installs products and technologies that enable its clients to reduce their energy costs and carbon footprint. The Company has two business segments, Energy Efficiency Solutions (EES) and Sustainable Facilities Solutions (SFS). The Company serves residential, industrial, commercial, government and military markets in the United States and abroad. GREGORY INVESTMENTS: Case Summary & 5 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Gregory Investments, LLC 121 Capista Drive Shorewood, IL 60404 Bankruptcy Case No.: 11-34679 Chapter 11 Petition Date: August 25, 2011 Court: United States Bankruptcy Court Northern District of Illinois (Chicago) Judge: Carol A. Doyle Debtor's Counsel: Chris D. Rouskey, Esq. ROUSKEY AND BALDACCI 151 Springfield Ave Joliet, IL 60435 Tel: (815) 741-2118 Fax: (815) 741-0670 E-mail: rouskey.baldacci@gmail.com Scheduled Assets: $90,000 Scheduled Debts: $7,112,036 A list of the Company's five largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ilnb11-34679.pdf The petition was signed by David G. Gregory, manager. HALLWOOD ENERGY: Trustee Files $10M Loan Suit vs. Goldman Unit -------------------------------------------------------------- Pete Brush at Bankruptcy Law360 reports that Hallwood Energy LP's trustee on Thursday sued the commodities arm of Goldman Sachs Group Inc. in Texas federal court, claiming its refusal to advance the shale gas prospector $25 million breached a loan agreement and caused $10.3 million in damage. Goldman unit J. Aron & Co. was obligated to advance the $25 million, the amount remaining on a $65 million loan agreement reached in 2006, according to the complaint filed by Hallwood trustee Douglas J. Brickley, according to Law360. About Hallwood Energy Based in Dallas, Texas, Hallwood Energy, L.P. -- http://www.hallwoodenergy.com/-- is an upstream energy corporation, engaging in the exploration, acquisition, development and production of oil and gas properties. The Company and five of its affiliates filed separate petitions for Chapter 11 relief (Bankr. N.D. Tex. Lead Case No. 09-31253) on March 1, 2009. Kathleen M. Patrick, Esq., Michael R. Rochelle, Esq, Scott Mark DeWolf, Esq., and Sean Joseph McCaffity, Esq., at Rochelle McCullough L.L.P., represent the Debtors in their restructuring efforts. Blackhill Partners LLC serves as the Debtors' business consultant. Brian A. Kilmer, Esq., at Okin Adams & Kilmer LLP, in Dallas, and Brian D. Roman, Esq., at Okin Adams & Kilmer LLP, in Houston, represent the official committee of unsecured creditors. In its bankruptcy petition, Hallwood listed assets between $50 million and $100 million, and debts between $100 million and $500 million. HARRY & DAVID: Wins Confirmation of Plan of Reorganization ---------------------------------------------------------- Harry and David Holdings, Inc. disclosed that the United States Bankruptcy Court for the District of Delaware entered an order confirming the company's Plan of Reorganization. The Company expects to emerge from bankruptcy on or around September 13th, in advance of the 2011 holiday season. "With the Court's official confirmation of our Plan, we've reached a significant milestone for Harry & David and are excited to emerge from the Chapter 11 process as a stronger company, better positioned for long-term profitable growth. We remain grateful for the unwavering support of our dedicated partners, employees and customers throughout the restructuring process," said Kay Hong, Chief Restructuring Officer and interim Chief Executive Officer. As previously announced, the Plan allows the Company to convert all of its approximately $200 million of outstanding public notes into equity of the reorganized company. The Plan also includes an equity capital raise that will generate $55 million in equity financing upon the Company's emergence from Chapter 11. A group of the Company's existing noteholders have agreed to backstop the equity capital raise. The Company will utilize proceeds from the equity capital raise to satisfy obligations arising from its $55 million post-petition term loan. Additionally, the Company has a $100 million revolving loan commitment to finance its operations after the Company exits Chapter 11. "This fall, we plan to build on the momentum of our Fruit of the Month Club with an outstanding pear harvest. Going forward, we will also continue our commitment to non-profit organizations such as the Noreen Fraser Foundation, and the Nancy Davis "Race to Erase MS" campaign," continued Ms. Hong. "We are thrilled with the new gifts that have been developed for the holiday season, available beginning in mid-September, and we look forward to continuing to deliver a terrific gift experience and unparalleled customer service as Harry & David has done for generations." Harry & David's investment banker is Rothschild Inc., its legal advisor is Jones Day, and its financial advisor is Alvarez & Marsal. The Company's bondholders are being advised by Stroock & Stroock & Lavan LLP, as legal counsel, and Moelis & Company as financial advisor. About Harry & David Medford, Oregon-based Harry & David Holdings, Inc. -- aka Bear Creek Corporation; Bear Creek Direct Marketing, Inc.; Bear Creek Stores, Inc.; Bear Creek Operations, Inc.; and Bear Creek Orchards, Inc. -- is a multi-channel specialty retailer and producer of branded premium gift-quality fruit and gourmet food products and gifts marketed under the Harry & David(R), Wolferman's(R) and Cushman's(R) brands. It has 70 stores across the country. Harry & David Holdings filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 11-10884) on March 28, 2011. Affiliates Harry and David (Bankr. D. Del. Case No. 11-10885), Harry & David Operations, Inc. (Bankr. D. Del. Case No. 11-10886), and Bear Creek Orchards, Inc. (Bankr. D. Del. Case No. 11-10887) filed separate Chapter 11 petitions. The cases are jointly administered, with Harry David Holdings as lead case. David G. Heiman, Esq., Brad B. Erens, Esq., and Timothy W. Hoffman, Esq., at Jones Day, are the Debtors' lead counsel. Daniel J. DeFranceschi, Esq., Paul Noble Heath, Esq., and Zachary Shapiro, Esq., at Richards Layton & Finger, serve as the Debtors' local counsel. Rothschild Inc. is the Debtors' investment banker. Alvarez & Marsal LLC is the Debtors' financial advisor. Garden City Group Inc. is the Debtors' claims and notice agent. McKinsey Recovery & Transformation Services U.S. LLC is being tapped as management consultants. The Debtor also tapped DJM Realty Services, LLC, as real estate consultants; Alvarez & Marsal North America to provide the Debtors an interim chief executive officer and chief restructuring officer and certain additional officers; and McKinsey Recovery & Transformation Services U.S. LLC as their management consultant. Kristopher M. Hansen, Esq., and Erez E. Gilad, Esq., at Stroock & Stroock & Lavan LLP; Thomas B. Walper, Esq., at Munger, Tolles & Olson LLP; and Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP are counsel to principal noteholders. Moelis & Company is the financial advisor to the principal noteholders. Lowenstein Sandler has been retained as counsel to the unsecured creditors committee. The Debtors disclosed $304.3 million in total assets and $360.8 million in total debts as of Dec. 25, 2010. On April 7, 2011, the U.S. Trustee appointed an official committee of unsecured creditors in the Debtors' cases. HART STORES: Gets Initial CCAA Order From Quebec Court ------------------------------------------------------ Hart Stores Inc. disclosed that in order to restructure its operations, it obtained an Initial Order from the Quebec Superior Court under the Companies' Creditors Arrangement Act (Canada). The Court granted Hart Stores protection under the CCAA for an initial period expiring on September 29, 2011, to be extended as required and approved by the Court. While the Company is under CCAA protection, all proceedings on the part of its creditors are stayed. Hart Stores believes that restructuring under the CCAA will provide the Company with the best opportunity to develop a viable business plan to ensure successful operations in the future. The Initial Order also authorizes Hart Stores to borrow an amount of up to $20 million from Wells Fargo Capital Finance Corporation Canada, the Company's current secured lender, pursuant to the terms of a DIP commitment letter, in order to finance the Company's liquidity needs during the restructuring period. Advances made under the DIP facility will be secured by a court- ordered charge over all of Hart Stores' assets. No further advances will be made under the Company's existing credit facility with Wells Fargo. The funding will assure the availability of funds for payment to all employees of the Company and to suppliers who deliver goods and services to the Company subsequent to the issuance of the Initial Order. The terms and conditions of the restructuring plan have not yet been determined by Hart Stores. All of the Hart Stores locations remain open for business. RSM Richter Inc. has been appointed Monitor pursuant to the Initial Order. All inquiries regarding the CCAA proceedings affecting Hart Stores should be directed to the Monitor. A copy of the Initial Order will be made available and may be viewed on the Monitor's website at http://www.rsmrichter.com/restructuring/HartStores.aspx. About Hart Stores Hart Stores Inc. operates a network of 92 mid-sized department stores under the Hart, Bargain Giant and Geant des Aubaines banners. The stores are located in secondary and tertiary markets throughout Eastern Canada where the Company has established a dominant position in many of the communities that it serves. The stores offer an extensive and differentiated selection of national and exclusive fashion apparel brands as well as family footwear, home furnishings, giftware, toys and seasonal goods. HD SUPPLY: To Sell All Interests in Plumbing Business to Hajoca --------------------------------------------------------------- HD Supply, Inc., entered into a definitive agreement to sell all of the issued and outstanding equity interests in its Plumbing/HVAC business to Hajoca Corporation. The transaction is expected to close in September 2011 upon the satisfaction of customary closing conditions, including obtaining requisite government approvals. About HD Supply HD Supply, Inc., headquartered in Atlanta, Georgia, is one of the largest North American wholesale distributors supporting residential and non-residential construction and to a lesser extent electrical consumption and repair and remodeling. HDS also provides maintenance, repair and operations services. Its businesses are organized around three segments: Infrastructure and Energy; Maintenance, Repair & Improvement; and, Specialty Construction. HDS operates through approximately 800 locations throughout the U.S. and Canada serving contractors, government entities, maintenance professionals, home builders and professional businesses. The Company reported a net loss of $619 million on $7.47 billion of revenue for the fiscal year ended Jan. 30, 2011, compared with a net loss of $514 million on $7.42 billion of net sales for the fiscal year ended Jan. 31, 2010. The Company's balance sheet at Jan. 30, 2011 showed $7.09 billion in total assets, $6.99 billion in total liabilities, and a $96 million in stockholders' equity. * * * HD Supply carries 'Caa2' probability of default rating and corporate family rating, with negative outlook, from Moody's Investors Service, and a 'B' corporate credit rating, with negative outlook, from Standard & Poor's Ratings Services. In April 2010, when Moody's downgraded the ratings to 'Caa2' from 'Caa1', it said, "The downgrade results from Moody's views that the construction industry, the main driver of HDS' revenues, will continue to be weak for the foreseeable future, pressuring the company's ability to generate meaningful levels of earnings and free cash flow relative to its debt." HEARUSA INC: Sale of Assets to Siemens Unit Approved ---------------------------------------------------- As reported in the Troubled Company Reporter on Aug. 2, 2011, HearUSA, Inc. disclosed that Audiology Distribution, LLC, a wholly owned subsidiary of Siemens Hearing Instruments, Inc. submitted the highest and best bid for the purchase of substantially all of the assets of the company in the July 29, 2011 Section 363 auction conducted under bidding procedures established for HearUSA's Chapter 11 bankruptcy proceedings. On Aug. 17, 2011, the Bankruptcy Court issued an order approving the transaction. Pursuant to the terms of the Asset Purchase Agreement, the Purchaser has agreed to purchase the acquired assets for a purchase price estimated at approximately $109 million. The Purchase Price is comprised of $66.8 million in cash plus certain assumed liabilities (which includes repayment or assumption of the $10 million debtor-in-possession (DIP) financing provided by the stalking horse bidder, William Demant Holdings A/S), plus the payment of cure costs for assumed contracts, and the assumption of various liabilities of the company. In addition, Siemens has agreed to an unconditional waiver of its right to receive any distribution with respect to the 6.4 million shares of the Company's common stock that it owns in the event that the sale to the Purchaser under the Asset Purchase Agreement is consummated. For purposes of the bidding in the Section 363 auction, the Company estimated the value of the waiver of distribution to be in the range of $6.0 to $7.0 million, subject to final reconciliation of assumed liabilities, excluded liabilities, taxes and common stock dilution effects of the transaction. Pursuant to the Asset Purchase Agreement, the Company, Siemens and the Purchaser agreed that, solely for purposes of the comparison of bids from the Purchaser and William Demant during the Section 363 auction, the offer by the Purchaser would also reflect an amount equal to $20 million corresponding to the value, agreed for such purposes, of eliminating the possibility of a rejection damages claim regarding the supply agreement between the Company and Siemens as long as the Purchaser was the prevailing bidder. Consummation of the sale to the Purchaser is subject to a number of customary conditions, including, among others, conditions related to compliance with federal antitrust regulations; accuracy of the representations and warranties of the parties; material compliance by the parties with their obligations under the Asset Purchase Agreement; and compliance with certain specified deadlines for actions in connection with the bankruptcy case. The Asset Purchase Agreement may be terminated by the Purchaser under a number of circumstances, including the Company's breach of certain representations and covenants; and the failure to close the sale within sixty days after the Sale Order was entered by the Bankruptcy Court. The Asset Purchase Agreement, which is attached as Exhibit 2.1 to this Current Report on Form 8-K filed Aug. 24, 2011, is available at http://is.gd/QG1iyO The Company and Siemens are parties to an existing credit agreement, supply agreement and investor rights agreement. Borrowings under the credit agreement are secured by substantially all of the assets of the Company. The Company currently owes Siemens approximately $31 million under the credit agreement. Principal and interest may be paid in large part with rebates earned by the Company based on purchases of hearing aids from Siemens pursuant to the long-term supply agreement. The supply agreement requires that the Company purchase a minimum of 90% of its hearing aid requirements from Siemens or its affiliates. The investor rights agreement was entered into with Siemens in 2008 when Siemens acquired approximately 6.4 million shares of the Company's common stock in connection with amendments to the credit agreement and supply agreement and provides for certain registration rights, pre-emptive rights and rights of first refusal. The acquisition by the Purchaser as provided in the Asset Purchase Agreement will result in the repayment in full of amounts under the credit agreement and the assumption by Siemens of the supply agreement. About HearUSA Inc. HearUSA, Inc., which sells hearing aids in 10 states, filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 11-23341) on May 16, 2011, to sell the business for $80 million to William Demant Holdings A/S. The Debtor said that assets are $65.6 million against debt of $64.7 million as of March 31, 2010. HearUSA owes $31.3 million to Siemens Hearing Instruments Inc., the principal supplier and primary secured lender. Judge Erik P. Kimball presides over the case. Brian K. Gart, Esq., Paul Steven Singerman, Esq., and Debi Evans Galler, Esq., at Berger Singerman, P.A., represent the Debtor. The Debtor has tapped Bryan Cave LLP as special counsel; Sonenshine Partners LLC, investment banker; Development Specialist Inc., restructuring advisor ans Joseph J. Luzinski as chief restructuring officer; and AlixPartners LLC, as communications consultant. Trustee Services, Inc., serves as claims and notice agent. The Official Committee of Unsecured Creditors has been appointed in the case. Robert Paul Charbonneau, Esq., and Daniel L. Gold, Esq., at Ehrenstein Charbonneau Calderin, represent the Creditors Committee. An Official Committee of Equity Security Holders has also been appointed. Mark D. Bloom, Esq., at Greenberg Traurig P.A., in Miami, Fla., represents the Equity committee as counsel. HERCULES OFFSHORE: Files Fleet Status Report as of Aug. 25 ---------------------------------------------------------- Hercules Offshore, Inc., posted on its Web site at www.herculesoffshore.com a report entitled "Hercules Offshore Fleet Status Report". The Fleet Status Report includes the Hercules Offshore Rig Fleet Status (as of Aug. 25, 2011), which contains information for each of the Company's drilling rigs, including contract dayrate and duration. The Fleet Status Report also includes the Hercules Offshore Liftboat Fleet Status Report, which contains information by liftboat class for July 2011, including revenue per day and operating days. The Fleet Status Report is available for free at http://is.gd/YytGaD About Hercules Offshore Hercules Offshore Inc. (NASDAQ: HERO) -- http://www.herculesoffshore.com/-- provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry in the United States, Gulf of Mexico and internationally. The Company provides these services to integrated energy companies, independent oil and natural gas operators and national oil companies. The Company operates in six business segments: Domestic Offshore, International Offshore, Inland, Domestic Liftboats, International Liftboats and Delta Towing. The Company reported a net loss of $134.59 million on $657.48 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $91.73 million on $742.85 million of revenue during the prior year. The Company's balance sheet at June 30, 2011, showed $2.09 billion in total assets, $1.14 billion in total liabilities, and $944.48 million in stockholders' equity. The Troubled Company Reporter said on Nov. 17, 2010, Moody's Investors Service downgraded the Corporate Family Rating of Hercules Offshore Inc. and the Probability of Default Rating to Caa1 from B2. Moody's also downgraded Hercules' 10.5% senior secured notes due 2017, its senior secured revolving credit facility due 2012, and its senior secured term loan B due 2013, all to Caa1 with LGD3, 45%. The outlook remains negative. "The inability of Hercules to generate meaningful free cash flow despite limited reinvestment in its aging fleet of rigs is cause for concern," commented Stuart Miller, Moody's Senior Analyst. "Without a significant de-leveraging of its balance sheet, Hercules is following a path that could lead to financial hardship at the first sign of a market softening." Hercules' Caa1 CFR rating reflects its highly leveraged balance sheet and limited ability to generate free cash flow. The Caa1 rating on the senior secured notes reflects their pari passu secured position in Hercules' capital structure relative to the senior secured credit facilities. HERCULES OFFSHORE: Registers 5-Mil. Shares Under Incentive Plan --------------------------------------------------------------- Hercules Offshore, Inc., filed with the U.S. Securities and Exchange Commission a Form S-8 registration statement to register an additional 5,000,000 shares of common stock issuable pursuant to the Amended and Restated Hercules Offshore 2004 Long-Term Incentive Plan. The Board of Directors of the Company recommended for approval and, on May 10, 2011, the stockholders approved an amendment to the Plan that increased the number of shares available for issuance under the Plan from 10,250,000 to 15,250,000. A full-text copy of the Form S-8 is available for free at http://is.gd/JaIRt4 About Hercules Offshore Hercules Offshore Inc. (NASDAQ: HERO) -- http://www.herculesoffshore.com/-- provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry in the United States, Gulf of Mexico and internationally. The Company provides these services to integrated energy companies, independent oil and natural gas operators and national oil companies. The Company operates in six business segments: Domestic Offshore, International Offshore, Inland, Domestic Liftboats, International Liftboats and Delta Towing. The Company reported a net loss of $134.59 million on $657.48 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $91.73 million on $742.85 million of revenue during the prior year. The Company's balance sheet at June 30, 2011, showed $2.09 billion in total assets, $1.14 billion in total liabilities, and $944.48 million in stockholders' equity. The Troubled Company Reporter said on Nov. 17, 2010, Moody's Investors Service downgraded the Corporate Family Rating of Hercules Offshore Inc. and the Probability of Default Rating to Caa1 from B2. Moody's also downgraded Hercules' 10.5% senior secured notes due 2017, its senior secured revolving credit facility due 2012, and its senior secured term loan B due 2013, all to Caa1 with LGD3, 45%. The outlook remains negative. "The inability of Hercules to generate meaningful free cash flow despite limited reinvestment in its aging fleet of rigs is cause for concern," commented Stuart Miller, Moody's Senior Analyst. "Without a significant de-leveraging of its balance sheet, Hercules is following a path that could lead to financial hardship at the first sign of a market softening." Hercules' Caa1 CFR rating reflects its highly leveraged balance sheet and limited ability to generate free cash flow. The Caa1 rating on the senior secured notes reflects their pari passu secured position in Hercules' capital structure relative to the senior secured credit facilities. HORIZON LINES: To Exchange 4.25% Convertible Senior Notes --------------------------------------------------------- Horizon Lines, Inc., filed with the U.S. Securities and Exchange Commission a tender offer statement on Schedule TO relating to its offer to exchange outstanding 4.25% Convertible Senior Notes due 2012 and a related solicitation of consents for certain proposed amendments to the indenture governing the convertible old notes. As of Aug. 23, 2011, the aggregate principal amount of the convertible old notes outstanding was $330,000,000. A full-text copy of the Schedule TO is available for free at: http://is.gd/YYrsJF About Horizon Lines Charlotte, N.C.-based Horizon Lines, Inc. (NYSE: HRZ) is the nation's leading domestic ocean shipping and integrated logistics company. The Company owns or leases a fleet of 20 U.S.-flag containerships and operates five port terminals linking the continental United States with Alaska, Hawaii, Guam, Micronesia and Puerto Rico. The Company provides express trans-Pacific service between the U.S. West Coast and the ports of Ningbo and Shanghai in China, manages a domestic and overseas service partner network and provides integrated, reliable and cost competitive logistics solutions. The Company's balance sheet at June 26, 2011, showed $794.96 million in total assets, $793.45 million in total liabilities, and and a stockholders' deficit of $1.51 million. The Company expects to experience a covenant breach under the Senior Credit Facility in connection with the amended financial covenants upon the close of the third fiscal quarter of 2011. As reported in the TCR on March 30, 2011, Ernst & Young LLP, in Charlotte, North Carolina, expressed substantial doubt Horizon Lines' ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 26, 2010. The independent auditors noted that there is uncertainty that Horizon Lines will remain in compliance with certain debt covenants throughout 2011 and will be able to cure the acceleration clause contained in the convertible notes. * * * As reported by the TCR on Aug. 26, 2011, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Horizon Lines Inc. to 'SD' from 'CCC'. The rating action on Horizon Lines follow the company's decision to defer the interest payment on its $330 million senior convertible notes due August 2012, exercising the 30-day grace period. "Under our criteria, we view failure to make an interest payment within five business days after the due date for payment a default, regardless of the length of the grace period contained in an indenture," said Standard & Poor's credit analyst Funmi Afonja. HOTEL AIRPORT: Taps Francisco Molina as Accountant -------------------------------------------------- Hotel Airport Inc. asks the U.S. Bankruptcy Court for the District of Puerto Rico for permission to employ Francisco J. Garrido Molina CPA to provide accounting services, including, but not limited to, preparing tax returns, financial projections, auditing, and other tasks. Mr. Molina will charge a flat rate of $2,050 ($1,400 + $650) per month, with a $50 monthly increment for every 5 additional employees that debtor adds to its payroll. Mr. Molina will bill $125 per hour for additional services. The Debtor assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Hotel Airport Hotel Airport Inc., in San Juan, Puerto Rico, filed for Chapter 11 bankruptcy (Bankr. D. P.R. Case No. 11-06620) on Aug. 5, 2011. Judge Enrique S. Lamoutte Inclan oversees the case. Edgardo Munoz, PSC, serves as bankruptcy counsel. In its petition, the Debtor estimated $10 million to $50 million in both assets and debts. The petition was signed by David Tirri, its president. HUDSON HEALTHCARE: Creditors Protest Settlement With City --------------------------------------------------------- Ray Smith at the Hudson Reporter says creditors are crying foul in court over the city of Hoboken's settlement with the Hudson Healthcare Inc., the company that operates Hoboken's city-owned hospital. The HHI recently filed for Chapter 11 bankruptcy, leaving local businesses -- as well as two municipal entities -- owed millions of dollars they may never receive, and sources have raised questions about the cause of the bankruptcy. According to the report, knowledgeable sources said that representatives from HHI, the non-profit entity that operates the hospital, did not wish to declare bankruptcy, but received pressure from the Hoboken Municipal Hospital Authority, a municipal board, to do so. Doing so would smooth the process of the sale of the hospital from Hoboken to HUMC Holdco, a group from Bayonne that also operates Bayonne Medical Center. The report notes the hospital must extinguish its debts before the sale is complete, essentially wiping the slate clean for the new owner. A bankruptcy could achieve that goal quickly. The report notes the city took ownership of the once-failing hospital in 2007 by voting to guarantee $52 million in bonds. The measure, supported by the administration of Mayor David Roberts, saved the hospital, but taxpayers were concerned that if the facility failed financially, they would be left to pay. After Mayor Dawn Zimmer took office in 2009, she pledged to sell the hospital -- which was still on shaky financial ground -- to private owners who would still run it as a hospital for several years, so taxpayers will no longer be responsible for it. After receiving eight bids, the city began the process of selling the facility to Holdco. As part of the agreement, Holdco agreed to keep the facility as a hospital for at least seven years. According to the report, shortly before HHI declared bankruptcy, Hoboken University Medical Center Chief Executive Officer Spiros Hatiras resigned from his position, making state headlines when it was discovered that he would receive a $600,000 severance payout. Members of the HHI board also resigned from their positions before the bankruptcy. Also, sources say that the Hoboken Municipal Hospital Authority, a municipal board, withheld some money from HHI, which may have helped force them into bankruptcy. The HMHA denied this last week, the report notes. About Hudson Healthcare Hudson Healthcare Inc. is the nonprofit operator of Hoboken University Medical Center in Hoboken, New Jersey. Hudson Healthcare filed for Chapter 11 protection (Bankr. D. N.J. Case No. 11-33014) in Newark on Aug. 1, 2011, estimating assets and debt of less than $50 million. Affiliate Hoboken Municipal Hospital Authority also sought Chapter 11 protection. Judge Donald H. Steckroth presides over the cases. Attorneys at Trenk, Dipasquale, Webster, et al., serve as counsel to the Debtor. Epiq Bankruptcy Solutions, LLC is the noticing and claims agent. In August 2011, the New Jersey Health Planning Board voted to recommend to the Commissioner of Health to approve the sale of Hoboken University Medical Center to HUMC Holdco, a private group that also owns Bayonne Medical Center. Holdco has pledged to maintain it as a hospital for at least seven years. The proposed transaction totals $91.7 million, including a $51.6 million cash payment to extinguish Hobokens' bond guarantee. The new owners have pledged to put $20 million in capital improvements in the hospital. INDIANAPOLIS DOWNS: Exclusivity Period Extended Until Jan. 6 ------------------------------------------------------------ BankruptcyData.com reports that the U.S. Bankruptcy Court signed an order extending the exclusive period during which Indianapolis Downs can file a Chapter 11 plan and solicit acceptances thereof by 90 days through and including Nov. 7, 2011, and Jan. 6, 2012, respectively. About Indianapolis Downs Indianapolis Downs, LLC, operates a "racino," which is a combined race track and casino, at a state-of-the-art 283 acre Shelbyville, Indiana site. It also operates two satellite wagering facilities in Evansville and Clarksville, Indiana. Total revenue for 2010 was $270 million, representing an 8.7% increase in 2009. The casino captured 53% of the Indianapolis market share. In July 2001, Indianapolis Downs was granted a permit to conduct a horse track operation in Shelvyville, Indiana, and started operating the track in 2002. It was granted permission to operate the casino at the racetrack operation in May 2007. The casino began operations in July 2010. Indianapolis Downs and subsidiary, Indianapolis Downs Capital Corp., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 11-11046) in Wilmington, Delaware, on April 7, 2011. Indianapolis Downs estimated $500 million to $1 billion in assets and up to $500 million in debt as of the Chapter 11 filing. According to a court filing, the Debtor owes $98,125,000 on a first lien debt. It also owes $375,000,000 on secured notes and $72,649,048 on subordinated notes. Matthew L. Hinker, Esq., Scott D. Cousins, Esq., and Victoria Watson Counihan, Esq., at Greenberg Traurig, LLP in Wilmington, Delaware, have been tapped as counsel to the Debtors. Christopher A. Ward, Esq., at Polsinelli Shughart PC, in Wilmington, Delaware, is the conflicts counsel. Lazard Freres & Co. LLC is the investment banker. Bose Mckinney & Evans LLP and Bose Public Affairs Group LLC serve as special counsel. Kobi Partners, LLC, is the restructuring services provider. Epiq Bankruptcy Solutions is the claims and notice agent. INNER CITY MEDIA: Shareholders Get 2% Stake Under Yucaipa Plan -------------------------------------------------------------- Yucaipa Corporate Initiatives Fund II, L.P., Yucaipa Corporate Initiatives (Parallel) Fund II, L.P., CF ICBC LLC, Fortress Credit Funding I L.P., and Drawbridge Special Opportunities Fund Ltd. said in court papers that they have presented a restructuring plan for Inner City Media Corporation before they decided to place the company and its various affiliates in bankruptcy. The plan was negotiated with various parties-in-interest. The economics of the proposal evolved over the course of the parties' negotiations. Throughout negotiations, Inner City Media's equityholders repeatedly pressed the senior lenders for greater recoveries. Ultimately, the Senior Lenders agreed to certain additional concessions in favor of the Alleged Debtors, resulting in a fully negotiated, consensual restructuring term sheet and plan support agreement that, among other things, granted the Alleged Debtors' equityholders: (i) $1,200,000 in cash, (ii) 2% of the equity interests in the reorganized ICMC, and (iii) 5-year warrants for 6% of the common stock of the reorganized ICMC on the effective date of a chapter 11 plan, and provided for the adoption of a new management incentive plan, pursuant to which the management of the reorganized Alleged Debtors would be eligible to receive stock options for up to an additional 6% of the equity interests in reorganized ICMC. The Restructuring Proposal also incorporated the proposed terms of a 5-year employment agreement for Pierre Sutton, chief executive officer and chairman of the board of directors of Holdings, ICMC, and ICMC parent, Inner City Broadcasting Corporation, pursuant to which Mr. Sutton would: (i) receive base compensation of $600,000 per year, (ii) 2% of the common stock of the reorganized ICMC, issued pursuant to the new management incentive plan, (iii) be entitled to participate in all health and dental insurance plans of the reorganized Alleged Debtors on the same terms and conditions as other senior executives, (iv) be entitled to $20,000 per year as an expense budget for business related travel expenses, and (v) be given the title of Chairman Emeritus. As reported by the Troubled Company Reporter on Aug. 23, 2011, affiliates of Yucaipa and CF ICBC LLC, Fortress Credit Funding I L.P., and Drawbridge Special Opportunities Fund Ltd., signed involuntary Chapter 11 petitions for Inner City and its affiliates (Bankr. S.D.N.Y. Case Nos. 11-13967 to 11-13979) to collect on a $254 million debt. The Petitioning Creditors are party to the senior secured credit facility pursuant to which they (or their predecessors in interest) extended $197 million in loans to the Alleged Debtors to be used for general corporate purposes. More than two years ago, the Alleged Debtors defaulted under the Senior Secured Credit Facility, and in any event the entire amount of principal and accrued and unpaid interest and fees became immediately due and payable on February 13, 2010. As a result, the Senior Lenders are owed approximately $250 million in principal and accrued and unpaid interest and fees as of the Involuntary Chapter 11 Petition Date. The Senior Lenders say they will demonstrate in the Chapter 11 cases that the Alleged Debtors have been mismanaged and the value of the Senior Lenders' collateral has steadily decreased to the point where they are now substantially undersecured. According to the Senior Lenders, although they are at this point undersecured, the restructuring offer made by the Senior Lenders would have left unsecured creditors unimpaired and provided equityholders with a cash recovery and a continuing stake in the reorganized entities. That proposal was initially accepted by the board of one of the Alleged Debtors -- ICMC, the main operating company of the Alleged Debtors. The Alleged Debtors' professionals at the time, Skadden Arps and Alvarez & Marsal, recommended to the board of ICMC that it approve the restructuring proposal embedded in the plan support agreement. "However, on the eve of moving forward with this orderly chapter 11 filing, the parent company of the Alleged Debtors, at the behest of the parent company's chairman, Mr. Pierre Sutton, forced the Alleged Debtors to back out of this deal, apparently to seek a greater recovery for himself and other existing shareholders," according to the Senior Lenders. Rather than seeking the protections of a voluntary chapter 11 case, the Alleged Debtors have made disturbing written threats -- going so far as threatening to file chapter 7 petitions, with the consequential devastating affects on the Debtors' employees and vendors, and seeking to destroy the Alleged Debtors' Federal Communications Commission licenses, which are the bedrock of the Alleged Debtors' operations and value. Faced with these reckless threats, the Senior Lenders say they reluctantly concluded that they had no choice but to commence the involuntary chapter 11 cases. Attorneys for Yucaipa Corporate Initiatives Fund II, L.P. and Yucaipa Corporate Initiatives (Parallel) Fund II, L.P. are: John J. Rapisardi, Esq. Scott J. Greenberg, Esq. CADWALADER, WICKERSHAM & TAFT LLP One World Financial Center New York, New York 10281 Telephone: (212) 504-6000 Facsimile: (212) 504-6666 E-mail: john.rapisardi@cwt.com scott.greenberg@cwt.com Attorneys for CF ICBC LLC, Fortress Credit Funding I L.P., and Drawbridge Special Opportunities Fund Ltd are: Adam C. Harris, Esq. Meghan Breen, Esq. SCHULTE ROTH & ZABEL LLP 919 Third Avenue New York, New York 10022 Telephone: (212) 756-2000 Facsimile: (212) 593-5955 E-mail: adam.harris@srz.com meghan.breen@srz.com Inner City Media Corporation's affiliates subject to the involuntary Chapter 11 are ICBC Broadcast Holdings, Inc., Inner- City Broadcasting Corporation of Berkeley, ICBC Broadcast Holdings-CA, Inc., ICBC-NY, L.L.C., ICBC Broadcast Holdings-NY, Inc., Urban Radio, L.L.C., Urban Radio I, L.L.C., Urban Radio II, L.L.C., Urban Radio III, L.L.C., Urban Radio IV, L.L.C., Urban Radio of Mississippi, L.L.C., and Urban Radio of South Carolina, L.L.C. INNKEEPERS USA: Sue Cerberus, Chatham Over Dead $1-Bil. Deal ------------------------------------------------------------ Innkeepers USA Trust and its affiliates have filed a complaint with U.S. Bankruptcy Court for the Southern District of New York against Cerberus Series Four Holdings, LLC, Chatham Lodging Trust and other related defendants for breach of contract and other claims for reneging on their commitment to acquire 64 hotels from Innkeepers. Cerberus and Chatham entered into a binding commitment letter on May 16, 2011 to acquire the properties for $1.12 billion as part of Innkeeper's Chapter 11 plan of reorganization. However, Cerberus and Chatham purported to terminate the agreement on August 19, 2011 without explanation other than to generally reference the material adverse event language in the binding commitment letter. The "defendants purport to terminate their binding and irrevocable commitment based on an unidentified and unexplained 'material adverse effect,'" according to Innkeepers' complaint, "but no such material adverse effect has occurred. Cerberus' and Chatham's failure to provide any evidence of a material adverse effect is not surprising because the Debtors' (Innkeepers') business remains strong and on course." Moreover, the binding commitment letter contains no "market" material adverse event clause, according to the complaint. The complaint further states: "Cerberus' and Chatham's purported termination is nothing more than a calculated effort to apply leverage upon the Debtors and their constituents to renegotiate the terms of the parties' binding contract. Regardless of their motives, one thing is clear: Cerberus and Chatham are not excused from their obligations under the plain terms of the Binding Commitment Letter and Term Sheet." "We remain pleased with the operating performance of our properties," said Innkeepers' Chief Restructuring Officer, Marc A. Beilinson. "That's why we expect to once again see substantial interest in the 64 hotels that Cerberus and Chatham failed to purchase, in the event Cerberus and Chatham fail to live up to their contractual obligations." Innkeepers is seeking an order requiring Cerberus and Chatham Lodging Trust to perform their obligations under the binding commitment letter or pay substantial damages in an amount determined at trial for the defendants' improper termination of their binding and irrevocable commitment to purchase 64 of Innkeepers' hotels. The damages could exceed their $20 million deposit, which is being held in escrow. Copies of Innkeepers' complaint and other court documents are available at http://www.omnimgt.com/innkeepers/ 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. INNKEEPERS USA: Cerberus Suit May Be Capped at $20 Million ---------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Innkeepers USA Trust filed a lawsuit in bankruptcy court Aug. 29 aimed at compelling Cerberus Capital Management LP and Chatham Lodging Trust to complete a $1.12 billion acquisition of 64 hotels. According to the report, Innkeepers argues in the complaint that the obligation of Cerberus and Chatham to complete the purchase was "binding and irrevocable." The complaint says Cerberus earlier this month sought to lower the sale price, given conditions in the equity markets. Innkeepers points out that the contract does not allow termination for changes in general market conditions, only for deterioration in Innkeepers' own business. Innkeepers says its business hasn't suffered in the least. Innkeepers believes that canceling the purchase was part of a strategy where the buyers sought "leverage" to lower the price. According to Mr. Rochelle, in addition to arguing they properly ended the contract, Cerberus and Chatham may contend they can't be liable for more than the loss of their $20 million deposit. They can point to court-approved sale procedures which prescribe that loss of the deposit is Innkeepers' "sole remedy at law and in equity" for the buyers' breach of contract. It also says that loss of the deposit is "liquidated damages." Nonetheless, the complaint seeks to compel Cerberus and Chatham to complete the purchase. Alternatively, it seeks damages that could exceed the $20 million deposit. The lawsuit is Innkeepers USA Trust v. Cerberus Four Holdings LLC (In re Innkeepers USA Trust), 11-02557, U.S. Bankruptcy Court, Southern District New York (Manhattan). 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. INTERNATIONAL RARITIES: Files for Chapter 11 Bankruptcy ------------------------------------------------------- The Star Tribune reports that International Rarities Corp., 331 2nd Av. S., Minneapolis, filed for Chapter 11 bankruptcy protection in Minneapolis (Bankr. D. Minn. Case No. 11-45512), disclosing assets of $1,353,295, and liabilities of $3,025,921. Stephen Hastings is the president of the Company. IRVINE SENSORS: Marcus Williams Resigns from Board of Directors --------------------------------------------------------------- Marcus A. Williams tendered to the Board of Directors of Irvine Sensors Corporation his resignation as a director and a member of any committees of the Board, effective Aug. 23, 2011. About Irvine Sensors Headquartered in Costa Mesa, Calif., Irvine Sensors Corporation (OTC BB: IRSN) -- http://www.irvine-sensors.com/-- is a vision systems company engaged in the development and sale of miniaturized infrared and electro-optical cameras, image processors and stacked chip assemblies and sale of higher level systems incorporating said products. Irvine Sensors also conducts research and development related to high density electronics, miniaturized sensors, optical interconnection technology, high speed network security, image processing and low-power analog and mixed-signal integrated circuits for diverse systems applications. The Company's balance sheet at Jan. 2, 2011, showed $15.09 million in total assets, $30.92 million in total liabilities and $15.82 million in total stockholders' deficit. Squar, Milner, Peterson, Miranda & Williamson, LLP, in Irvine, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that as of Oct. 3, 2010, the Company has negative working capital of $10.1 million and a stockholders deficit of $10.1 million. The Company reported a net loss of $11.16 million on $11.72 million of revenues for the fiscal year ended Oct. 3, 2010, compared with a net loss of $914,700 on $11.54 million of revenues for the fiscal year ended Sept. 27, 2009. KEELEY AND GRABANSKI: Taps Kaler Doeling as Bankruptcy Counsel -------------------------------------------------------------- Keeley and Grabanski Land Partnership asks the U.S. Bankruptcy Court for the District of North Dakota for permission to employ Kaler Doeling Law Office as counsel. The Debtor proposes to pay the firm $200 per hour plus all out of pocket expenses. To the best of the Debtor's knowledge, the firm is a "disinterested person" as that term is defined in section 101(14) of the Bankruptcy Code. The firm can be reached at: KALER DOELING LAW OFFICE 121 Robert Street P.O. Box 423 Fargo, ND 58107 About Keeley and Grabanski Thomas Grabanski, a North Dakota farmer, is mired in three separate Chapter 11 bankruptcy cases. Mr. Grabanski and his wife Mari filed a personal Chapter 11 bankruptcy petition (Bankr. D. N.D. Case No. 10-30902) on July 22, 2010. DeWayne Johnston, Esq., at Johnston Law Office, represents the Grabanskis in their Chapter 11 case. The Grabanskis estimated assets between $1 million and $10 million, and debts between $10 million and $50 million. On July 23, 2010, Mr. Grabanski signed a Chapter 11 petition for Grabanski Grain LLC (Bankr. D. N.D. Case No. 10-30924). DeWayne Johnston, Esq., also represents Grabanski Grain. The Debtor is estimated to have assets and debts of $1,000,001 to $10,000,000. Former owners in December 2010 forced the partnership Keeley & Grabanski Land Partnership in Texas into Chapter 11. John and Dawn Keely, the former owners, filed an involuntary Chapter 11 bankruptcy petition against the partnership (Bankr. D. N.D. Case No. 10-31482) on Dec. 6, 2010. Kenneth Corey-Edstrom, Esq., at Larkin Hoffman Daly & Lindgren Ltd., represents the petitioner. Keeley & Grabanski Land Partnership in Texas -- since 2009 doing business as Grabanski Land Partnership -- was formed in 2007 for Texas farming operations between farmers Thomas Grabanski and John Keeley of Grafton, N.D., and their wives. K&G Land, along with a separate farming partnership, operated more than 10,000 acres of corn and sunflowers from 2007 to 2009 in two locations in Texas near the towns of Blossom and DeKalb. In separate, related lawsuits, the Grabanskis face several "adversarial" lawsuits, filed by certain creditors. The creditors who filed suits include Crops Production Services Corp., AgCountry Farm Credit Services, and PHI Financial. KERZNER INT'L: Faces Sept. 9 Deadline to Pay $2.6-Bil. Debt ----------------------------------------------------------- The Wall Street Journal's Kris Hudson and Mike Spector report that people familiar with the matter said Kerzner International Holdings Ltd., the owner of several luxury getaways, is exploring selling its 50% stake in the Atlantis resort in Dubai to raise money to restructure $2.6 billion in mortgage debt coming due next week. The sources said the proceeds would go toward paying down a portion of the mortgage debt on a separate Atlantis resort in the Bahamas, Kerzner's flagship property and one of the most popular resorts in North America. The debt matures Sept. 9. The sources also told the Journal that Kerzner needs to make a large payment on the $2.6 billion mortgage on the Bahamian Atlantis to entice lenders to grant it a two-year extension. According to the Journal, the sources said Kerzner is in talks to sell the stake in the Dubai Atlantis to Istithmar World, Dubai's investment arm. Istithmar already owns the other half of the Dubai resort as Kerzner's partner and largest shareholder. Some people familiar with the discussions told the Journal the sale, if consummated, could reap as much as $250 million to $350 million. The sources told the Journal the sale discussions remain fluid and might fall apart. The Journal notes that Istithmar might find it challenging to raise the capital needed to buy the other 50% stake in the Dubai Atlantis. Istithmar just completed a restructuring of its own debts. The Dubai Atlantis is saddled with a $1 billion mortgage of its own, meaning that any buyer of a 50% stake must assume half of that mortgage. Any proceeds exceeding the mortgage amount aren't likely to be enough for Kerzner to make all of the payments required by its lenders to extend the mortgage on the Bahamian Atlantis. Istithmar didn't respond to requests for comment. The Journal relates a Kerzner representative would only say: "The company remains in constructive and active discussions with its lenders." The sources told the Journal that talks have bogged down because one creditor, Brookfield Asset Management Inc., is demanding a far larger principal payment in exchange for the extension than Kerzner has offered to pay. The Journal relates the exact amount of Brookfield's request couldn't be determined. At one point, Brookfield had been asking for more than $200 million, said a person familiar with the matter. Kerzner had offered more than $100 million. The sources said if Kerzner doesn't soon sell the Dubai Atlantis stake and get a wider restructuring deal done, creditors are likely to grant short grace periods to effectively push back the impending due date on the company's mortgage by a few weeks. That forbearance would come in lieu of creditors foreclosing on Kerzner properties, and it would allow the two sides to continue restructuring negotiations. According to the Journal, the mortgage on the Bahamian Atlantis is nonrecourse, meaning that Kerzner likely would lose the property in a foreclosure but wouldn't be on the hook for more. However, such a default would cause more damage by triggering cross defaults of other Kerzner debts, causing more problems for Kerzner. Lenders typically agree to extend a securitized mortgage by two years if the borrower pays 5% to 10% of the loan's balance. Even if Kerzner sold the Dubai Atlantis, the Journal continues, not all of the proceeds likely will be available to pay down the debt on the Bahamian Atlantis because Kerzner has other lenders that might clamor for some of the proceeds, including holders of $400 million of operating-company debt coming due in December. KEVIN WERRY: Court Rejects Bid to Hire Bauer & French ----------------------------------------------------- Bankruptcy Judge Jim D. Pappas denied, without prejudice, the application of Kevin and D'Rese Werry to employ Randal J. French, Esq., at Bauer & French, in Boise, Idaho, as their attorney after the proposed counsel failed to disclose that a creditor of the Debtors paid the $8,539 in retainer fees provided to the law firm. The Office of the United States Trustee had objected to the Application. The Court directed the Debtors and Counsel to revise their Fee Agreement to comply with the Bankruptcy Code and Rules, after which they may reapply for approval of the Counsel's employment. A copy of Judge Pappas' Aug. 26, 2011 Memorandum of Decision is available at http://is.gd/tCR66zfrom Leagle.com. Kevin C. Werry and D'Rese G. Werry filed for Chapter 11 bankruptcy (Bankr. D. Idaho Case No. 11-01710) on June 6, 2011. LA CORTEZ ENERGY: Reports $982,300 Net Income in 2nd Quarter ------------------------------------------------------------ La Cortez Energy, Inc., filed its quarterly report on Form 10-Q, reporting net income of $982,347 on $639,441 of oil revenues for the three months ended June 30, 2011, compared with a net loss of $2.9 million on $75,891 of oil revenues for the same period in 2010. During the three months ended June 30, 2011, the Company recognized an unrealized gain from the decrease in the fair value of derivative warrant instruments liability of approximately $1.9 million compared to an unrealized loss of $657,531 during the three months ended June 30, 2010. The Company reported net income of $3.2 million on $1.0 million of oil revenues for the six months ended June 30, 2011, compared with a net loss of $3.8 million on $166,274 of oil revenues for the same period last year. During the six months ended June 30, 2011, the Company recognized an unrealized gain from the decrease in the fair value of derivative warrant instruments liability of roughly $6.4 million compared to an unrealized loss of $102,023 during the six months ended June 30, 2010. The Company's balance sheet as of June 30, 2011, showed $27.7 million in total assets, $3.3 million in total liabilities, and shareholders' equity of $24.4 million. BDO USA, LLP, in Houston, Texas, expressed substantial doubt about La Cortez Energy's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has limited operating history, no historical profitability, and has limited available funds. A copy of the Form 10-Q is available at http://is.gd/BsETbK Headquartered in Bogota, Colombia, La Cortez Energy, Inc. (OTC BB: LCTZ) -- http://www.lacortezenergy.com/-- is an international, early stage oil and gas exploration and production company focusing its business in South America. The Company has entered into two initial working interest agreements, with Petronorte and with Emerald, and has acquired a private company, Avante Colombia. The Company was initially incorporated in the State of Nevada on June 9, 2006, under the name La Cortez Enterprises, Inc., to pursue certain business opportunities in Mexico. During 2008, the Company's Board of Directors decided to redirect the Company's efforts towards identifying and pursuing business in the oil and gas sector in South America. LA JOLLA: Inks 2nd Amendment Pact with Preferred Shares Holders --------------------------------------------------------------- La Jolla Pharmaceutical Company, on Aug. 24, 2011, entered into a Second Amendment Agreement with the holders of a majority of the Company's outstanding preferred stock in order to provide the Company with additional working capital to allow the Company to more fully evaluate certain product acquisition or in-licensing opportunities that are currently being investigated. Pursuant to the Amendment Agreement, the Holders agreed to continue to waive the dividends that would otherwise accrue on the outstanding Series C-1 1 Convertible Preferred Stock and Series C-2 1 Convertible Preferred Stock. Additionally, pursuant to the Amendment Agreement, the dividends that would otherwise accrue on the Series C Preferred Stock held by individuals other than the Holders have also been waived. The waiver of dividends will take effect as of Sept. 1, 2011, and continue through Oct. 31, 2011, after which time dividends will begin to accrue again on the Series C Preferred Stock. The Holders have also agreed to provide the Company with additional working capital, in an amount to be determined, if the Requisite Holders determine by Sept. 2, 2011, and then again by Sept. 26, 2011, that, as of those dates, the Company is continuing to pursue a Strategic Transaction. Additionally, the Holders have agreed to extend the time period for which they will purchase up to all of the outstanding Series C Preferred Stock and certain warrants held by current and former Company employees, including the Officers. As a partial inducement to cause the Holders to enter into the Amendment Agreement, the Company's two executive officers agreed to extend the temporary reduction of their salaries through Oct. 31, 2011, as follows: Deirdre Gillespie, M.D., chief executive officer, by a total of $36,660, and Gail Sloan, chief financial officer, by a total of $7,178. In connection with this reduction in salary, the Officers will have a corresponding reduction in total work hours during this time, resulting in a 50% reduction relative to full-time for Dr. Gillespie and a 20% reduction relative to full-time for Ms. Sloan. A full-text copy of the Second Amendment Agreement is available for free at http://is.gd/OynMIs About La Jolla Pharmaceutical San Diego, Calif.-based La Jolla Pharmaceutical Company (OTC BB: LJPC) -- http://www.ljpc.com/-- is a biopharmaceutical company that has historically focused on the development and testing of Riquent as a treatment for Lupus nephritis. The Company's balance sheet at June 30, 2011, showed $5.81 million in total assets, $6.87 million in total liabilities, all current, $5.32 million in Series C-1 redeemable convertible preferred stock, and a $6.38 million total stockholders' deficit. The Company reported a net loss of $3.76 million on $0 of revenue from collaboration agreement for the year ended Dec. 31, 2010, compared with a net loss of $8.63 million on $8.12 million of revenue from collaboration agreement during the prior year. The Company has a history of recurring losses from operations and, as of June 30, 2011, the Company had no revenue sources, an accumulated deficit of $429,876,000 and available cash and cash equivalents of $5,792,000 of which up to $5,325,000 could be required to be paid upon the exercise of redemption rights under the Company's outstanding preferred securities. Such redemption was not considered probable as of June 30, 2011. As reported by the TCR on April 18, 2011, BDO USA, LLP, in San Diego, Calif., expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company has suffered recurring losses from operations, an accumulated deficit of $428 million as of Dec. 31, 2010 and has no current source of revenues. LAMBUTH UNIVERSITY: Univ. of Memphis Leasing Facilities This Year ----------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Lambuth University will survive as an institution of higher learning, although not under its own name. The Tennessee Board of Regents approved purchasing Lambuth's facilities to be operated as part of the University of Memphis. According to the report, so the University of Memphis could begin using the facilities this academic year, the bankruptcy judge this month approved a one-year lease for $1. In response to objection on behalf of secured bondholders, the Regents were required by the judge to insure the property. About Lambuth University Lambuth University in Jackson, Tennessee, said in its Web site that the trustees of the liberal arts school, founded in 1843, decided to close the school effective June 30, 2011. Lambuth filed for Chapter 11 protection (Bankr. W.D. Tenn. Case No. 11- 11942) in Jackson, Tennessee on the same day. Steven N. Douglass, Esq., at Harris Shelton Hanover Walsh, PLLC, serves as counsel to the Debtor. The Debtor estimated assets of up to $10 million and debts of $10 million to $50 million as of the Chapter 11 filing. LEHMAN BROTHERS: Court Sends Plan to Creditors for Voting --------------------------------------------------------- Judge James M. Peck of the U.S. Bankruptcy Court for the Southern District of New York today approved the Disclosure Statement for the Revised Second Amended Joint Chapter 11 Plan of Lehman Brothers Holdings Inc. (LBHI) and its affiliated debtors. Solicitation packages consisting of, among other things, the Disclosure Statement and Plan will be distributed to creditors beginning Sept. 23, 2011. Creditors entitled to vote on the Plan will also receive a ballot or ballots as applicable. The voting deadline has been set for Nov. 4, 2011. To date, more than 45 creditor entities asserting claims in excess of $130 billion have executed Plan Support Agreements. These include two new agreements announced in court with affiliates in Singapore and the Netherlands. A hearing to confirm the Plan is currently scheduled for Dec. 6, 2011. The effective date for emergence from Chapter 11 and beginning distributions to creditors will take place following confirmation of the Plan. Bryan Marsal, LBHI's Chief Executive Officer, said: "Our goal from the start of this case has been to move expeditiously toward an economic compromise that would allow for prompt distributions to creditors. The approval of the disclosure statement by Judge Peck is a major milestone as we move toward that objective. The Official Committee of Unsecured Creditors (UCC) and many creditor representatives from around the world worked diligently with us to help reach this point. We look forward to their continued support for confirmation and emergence." The Lehman bankruptcy cases are the largest and most complex in history. Before the bankruptcy, LBHI had assets of $639 billion on its consolidated balance sheet and operated as a truly global firm with over 7,000 legal entities in more than 40 countries. Lehman's insolvency has resulted in over 75 separate and distinct bankruptcy proceedings, with the non-United States proceedings managed by a number of court appointed administrators, liquidators, trustees, receivers, and like office holders. LBHI and its affiliated chapter 11 debtors, through its management team led by Alvarez & Marsal and their attorneys at Weil, Gotshal & Manges LLP, filed the Revised Second Amended Joint Chapter 11 Plan and Disclosure Statement with the United States Bankruptcy Court for the Southern District of New York. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LIONS GATE: S&P Affirms B- Corp. Credit Rating; Outlook Positive ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed the 'B-' corporate credit rating on British Columbia-domiciled and Santa Monica, Calif.-headquartered Lions Gate Entertainment Corp. and its subsidiary, Lions Gate Entertainment Inc. "At the same time, we revised the rating outlook to positive from stable, reflecting our view that the company could maintain positive EBITDA and discretionary cash flow, even with higher film costs over the next several quarters," S&P related. "Our rating on Lions Gate reflects our assessment that the company has a vulnerable business risk profile and a highly leveraged financial risk profile," S&P related. Lions Gate ranks eighth among U.S. motion picture producers and distributors year-to-date 2011, with a 1.8% box office market share, and it is a small producer of cable network programming. The company releases 12 to 16 widely distributed theatrical films each year, focusing its relatively low-budget films on niche categories, such as horror, urban, comedy, and prestige films. These genres cater to specific audiences instead of the mass market and do not require the high marketing expenses that action/adventure event films do. This strategy has not assured consistently satisfactory profitability, as the EBITDA margin of the company's motion picture segment is typically significantly below peers' because of mediocre box office performance, high print and advertising expenses, and film write-downs. Separate from its production activities, Lions Gate distributes an extensive film library of about 12,000 feature film and TV titles, accumulated through a series of acquisitions. Library cash flow offers an element of stability to revenue and cash flow, but has not ensured continuous profitability. "We expect Lions Gate's EBITDA to rise about 30% in the fiscal year ending March 31, 2012, but to end the year below its current trailing-12-month level because of increased film production and marketing costs in the second half as the company releases more new films than in the first half of the year," said Standard & Poor's credit analyst Deborah Kinzer. "Lower home entertainment revenue because of secular trends and fewer new DVD releases will be a major factor in our expected 5% revenue decline for the year." The positive rating outlook reflects Standard & Poor's view that Lions Gate could maintain positive EBITDA and discretionary cash flow, even with higher film costs over the next several quarters. "We could raise the rating if the company's EBITDA and discretionary cash flow remain at or near their current levels over the next several quarters, even as the company increases its film costs in connection with upcoming new releases, including the first installment of the "Hunger Games" film series in early calendar 2012. At the same time, we would expect the company to keep its debt to EBITDA ratio at less than 6.5x on an ongoing basis. Conversely, we could change the outlook back to stable if the company starts to report negative EBITDA quarters as a result of large film write-downs, if the company makes large debt- financed acquisitions that do not contribute EBITDA, or if liquidity becomes strained in the face of increasing debt levels," S&P added. LOUISVILLE ORCHESTRA: Judge Stosberg Approves Chapter 11 Plan ------------------------------------------------------------- Stephanie Clouser at Business First of Louisville reports that U.S. Bankruptcy Court Judge David T. Stosberg has approved the Louisville Orchestra's plan to emerge from bankruptcy, despite objections from one of the organization's largest creditors. According to the report, Judge Stosberg approved the orchestra's reorganization plan. Under the plan, the organization now will make payments to honor the majority of its commitments to exit bankruptcy. Business First says the plan includes paying 50 percent of debts during the next three years to secured creditors that had agreed to the reduced payment, according to Louisville Orchestra CEO Rob Birman. These creditors include Chase bank, which is owed $350,000. The orchestra, according to Business First, owes the American Federation of Musicians & Employers' Pension Fund, based in New York City, $43,486. Under the reorganization plan, the pension fund will be paid the full amount of that claim over the next three years. The pension fund objected to the orchestra's plan for reorganization in an Aug. 9, 2011 filing, claiming that the organization's plan was not feasible, was not filed in good faith and was not in the best interest of the fund. The report relates that the fund also claimed that the orchestra owed an additional $3.2 million as a penalty for failing to make payments to the pension fund. The pension fund claimed the orchestra incurred the penalty fee because it had withdrawn from the fund. Judge Stosberg allowed the pension fund's claim of $3.2 million, but he included it with the unsecured creditors. Mr. Birman said all unsecured creditors will share a total of $90,000. Before the addition of the pension fund's claim, he said, that would have covered about 50 percent of the unsecured debts. But with the additional $3.2 million claim included, unsecured creditors will receive approximately 3 cents on the dollar, Mr. Birman said. About Louisville Orchestra Based in Louisville, Kentucky, Louisville Orchestra, Inc. filed for Chapter 11 bankruptcy protection (Bankr. W.D. Ky. Case No. 10- 36321) on Dec. 3, 2010. Judge David T. Stosberg presides over the case. Daniel T. Albers, Jr., Esq., Mark A. Robinson, Esq., and Robert Wagner, Esq., at Valenti Hanley & Robinson PLLC, represent the Debtor. In its schedules, Louisville Orchestra disclosed it had $412,000 in assets and $1.4 million in liabilities. LOUISVILLE ORCHESTRA: Cancels Concerts in Next 2 Months ------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that although the Louisville Symphony Orchestra confirmed its Chapter 11 plan on Aug. 17, last week the ensemble announced the cancellation of concerts scheduled for September and October. The symphony said that the musicians' union threatened to fine members who worked so long as there is no new contract. According to the report, the symphony said it was offering musicians $925 a week plus benefits, the same as last season's wages. The reorganization plan resulted from negotiations with JPMorgan Chase Bank NA and Fifth Third Bank, the two principal secured lenders. The non-profit symphony was founded in 1937 and filed for Chapter 11 relief last December in its hometown. About Louisville Orchestra Based in Louisville, Kentucky, Louisville Symphony Orchestra, Inc., doing business as Louisville Orchestra, filed for Chapter 11 bankruptcy protection (Bankr. W.D. Ky. Case No. 10-36321) on Dec. 3, 2010. Judge David T. Stosberg presides over the case. Daniel T. Albers, Jr., Esq., Mark A. Robinson, Esq., and Robert Wagner, Esq., at Valenti Hanley & Robinson PLLC, represent the Debtor. In its schedules, Louisville Orchestra disclosed it had $412,000 in assets and $1.4 million in liabilities. LTS NUTRACEUTICALS: Posts $1.2-Mil. Net Loss in 2nd Quarter ----------------------------------------------------------- LTS Nutraceuticals, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $1.2 million on $378,505 of sales for the three months ended June 30, 2011, compared with a net loss of $83,132 on $486,538 of sales for the same period last year. The Company reported a net loss of $1.8 million on $561,790 of sales for the six months ended June 30, 2011, compared with a net loss of $344,903 on $747,896 of sales for the corresponding period of 2010. The Company's balance sheet at June 30, 2011, showed $3.4 million in total asset, $6.8 million in total liabilities, and a stockholders' deficit of $3.4 million. As of Aug. 10, 2011, the Company had $139,626 in cash. "The current operating plan indicates that losses from operations may be incurred for all of fiscal 2011, the Company said in the filing. Consequently the Company may not have sufficient liquidity necessary to sustain operations for the next twelve months and this raises substantial doubt that the Company will be able to continue as a going concern." A copy of the Form 10-Q is available at http://is.gd/YRCCre Ft. Lauderdale, Fla.-based LTS Nutraceuticals, Inc., develops and sells high-quality nutritional products that are distributed throughout North America through a network marketing system, which is a form of direct selling. LYMAN LUMBER: ABC Inc., Chetek Employer, Also in Chapter 11 ----------------------------------------------------------- Anita Zimmerman at Barron News-Shield reports that Automated Building Components Inc., a major supplier of jobs in the Chetek community, has filed for Chapter 11 protection, estimating assets between $1 million and 10 million, and liabilities between $100 million and 500 million. According to the report, the petition indicates the creditor holding the largest unsecured claim is Central States Pension Fund of Des Plaines, Ill., which is owed more than $7 million. The report says ABC Inc., based out of Excelsior, Minn., is a privately held corporation. Jim Hurd is the president and chief executive officer. The Chetek plant, which employs 106 workers, is one of ABC's two manufacturing facilities. They supply roof and floor trusses to lumber companies in Wisconsin and Minnesota. The report adds Lyman Lumber, the parent company, which has a retail showroom in Eau Claire and a development arm, Lyman Development Co., has several other interests: Woodinville Lumber, Carpentry Contractors, Mid America Cedar and Tri County Truss. Lyman Lumber had entered into a letter of intent to sell its Midwest Operations to SP Asset Management LLC (Steel Partners). Steel Partners is an affiliate of Steel Partners Holdings L.P., a global diversified holding company that owns and operates businesses in a variety of industries and is headquartered in New York, N.Y. The report says the sale was subject to definitive agreements between the parties and bankruptcy court approval. Lyman is seeking to use the Chapter 11 bankruptcy process to restructure certain of its debt obligations and to allow it to shed nonperforming assets such as its land position and construction lending portfolio, the release indicated. Lyman operates six divisions in the Midwest, servicing professional contractors and lumber dealers with building materials and job- site labor. Barron News says Terry Elwood, manager of the Chetek plant, said Chetek workers would not be affected, and no jobs would be lost beyond the usual seasonal adjustments. Earlier last week, as reported in Eau Claire media outlets, the Department of Workforce Development issued a press release indicating the Chetek facility would be sold to Steel Partners and workers would be laid off for one day between Oct. 1 and Oct. 14, the closing dates. The DWD issued a second release Tuesday indicating that layoff notices had been sent to employees. Re-hiring is expected after the deal is finalized. 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. 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. 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. BGA Management, LLC d/b/a Alliance Management, developed and executed a sale process and marketing strategy for the Debtors' assets. The Official Committee of Unsecured Creditors of Lyman Lumber Company tapped Fafinsky, Mark & Johnson, P.A., as its bankruptcy counsel. Alliance Management is the financial and turnaround consultant. When they filed for bankruptcy, the Debtors had in hand a term sheet with SP Asset Management, LLC, a unit of Steel Partners Holdings L.P., to serve as stalking horse bidder for the assets of the Debtors. New York City-based Steel Partners is a diversified holding company that owns and operates businesses in a variety of industries. MACCO PROPERTIES: Files List of 21 Largest Unsecured Creditors -------------------------------------------------------------- Macco Properties, Inc., has filed with the U.S. Bankruptcy Court for the Western District of Oklahoma a list of its 21 largest unsecured creditors. Debtor's List of 21 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ First Enterprise Bank Unsecured 1000 W Britton Road Bank Loan OKC, OK 73113 Guarantees $1,100,300.00 FAA Credit Union P.O. Box 26406 Oklahoma City, OK 73126 Guarantees $17,466,682.00 Quail Creek Bank P.O. Box 20160 OKC, OK 73156 Guarantees $10,896,618.00 Frontier Bank Guarantees $6,108,651.00 All America Bank Guarantees $7,900,017.00 Approximated $932,000 of This Claim Has Been Paid Off Since Filing by the LLC That Owns The Security Coastal Federal Credit Union Guarantees $6,925,000.00 This Claim Has Been Paid I Full Since Filing by LLC That Owned Security for the Debt Kirkpatrick Bank Guarantees $1,963,991.00 Sooner State Bank Guarantees $1,949,093.00 Approximately $400,000 of This Claim Has Been Paid Off by the LLC That Owns the Security for This Guarantee NBC Bank Guarantees $1,520,777.00 V&S Enterprises Guarantees $325,000.00 Oklahoma Fidelity Bank Guarantees $216,667.00 Geneva Price Unsecured Loan Approx. $55,000.00 Conner And Winters Legal Fees Approx. $50,000.00 Jackie Hill Approx. Dunn, Swan, Cunningham Legal Fees $44,000.00 This Claim Was Paid in Full by Co-Debtors in 4/11 Woodward, Hernandez, Roth And Day Legal Fees $24,552.00 This Claim Was Purchased and Assigned to Richard Ledbetter Since the Filing Ed Tennison Unsecured Loan $11,000.00 OGE Utilities $10,440.77 Daily Oklahoman Advertising $7,500.00 Wichita Eagle Advertising $7,500.00 Property Tax Network Property Of Texas Tax Adjustment $4,800.00 About Macco Properties Oklahoma City, Oklahoma-based Macco Properties, Inc., is a real estate holding and management company which is the sole member of numerous limited liability companies. The limited liability companies own 27 real estate properties, consisting primarily of apartment complexes, and commercial office space situated in Oklahoma and Kansas. The Company filed for Chapter 11 bankruptcy protection (Bankr. W.D. Okla. Case No. 10-16682) on Nov. 2, 2010. Bobbie G. Bayless, Esq., at Bayless & Stokes, in Houston, and Michael Paul Kirschner, Esq., at Robertson & Williams, in Oklahoma City, Okla., serve as the counsel to the Debtors. The Debtor disclosed $50,823,581 in total assets, and $4,323,034 in total liabilities. The Official Unsecured Creditors' Committee is represented by Ruston C. Welch, at Welch Law Firm, P.C., in Oklahoma City, Oklahoma. As reported in the TCR on June 17, 2011, the Bankruptcy Court approved the appointment of Michael E. Deeba as the Chapter 11 trustee in the case of Macco Properties, Inc. Richard A. Weiland, the U.S. Trustee for Region 20, selected Mr. Deeba pursuant to the order directing the appointment of a Chapter 11 trustee dated May 31, 2011. Janice Loyd, Esq., represents the Chapter 11 Trustee. MACCO PROPERTIES: Trustee Wants to Sell Real Property ----------------------------------------------------- The Journal Record says a bankruptcy trustee for Macco Properties Inc.'s vast real estate holdings wants to sell some of the property off, including a luxury high-rise condominium in Dallas valued at more than $2.5 million and several run-down apartment complexes in the metro area. About Macco Properties Oklahoma City, Oklahoma-based Macco Properties, Inc., is a real estate holding and management company which is the sole member of numerous limited liability companies. The limited liability companies own 27 real estate properties, consisting primarily of apartment complexes, and commercial office space situated in Oklahoma and Kansas. The Company filed for Chapter 11 bankruptcy protection (Bankr. W.D. Okla. Case No. 10-16682) on Nov. 2, 2010. Bobbie G. Bayless, Esq., at Bayless & Stokes, in Houston, and Michael Paul Kirschner, Esq., at Robertson & Williams, in Oklahoma City, Okla., serve as the counsel to the Debtors. The Debtor disclosed $50,823,581 in total assets, and $4,323,034 in total liabilities. The Official Unsecured Creditors' Committee is represented by Ruston C. Welch, at Welch Law Firm, P.C., in Oklahoma City, Oklahoma. As reported in the TCR on June 17, 2011, the Bankruptcy Court approved the appointment of Michael E. Deeba as the Chapter 11 trustee in the case of Macco Properties, Inc. Richard A. Weiland, the U.S. Trustee for Region 20, selected Mr. Deeba pursuant to the order directing the appointment of a Chapter 11 trustee dated May 31, 2011. Janice Loyd, Esq., represents the Chapter 11 Trustee. MANISTIQUE PAPERS: 341(a) Creditors' Meeting Set on Sept. 15 ------------------------------------------------------------ Manistique Papers Inc. will hold an 11 U.S.C. Sec. 341(a) meeting of creditors on Sep. 15, 2011 at 1:00 p.m. The meeting will be held at: U.S. District Court 844 King St. Room 5209 Wilmington, DE. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. About Manistique Papers Manistique Papers Inc. operates a landfill in Manistique, Michigan, whereby residuals resulting from paper production are deposited. Manistique Papers filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 11-12562) on Aug. 12, 2011. Daniel B. Butz, Esq., and Eric D. Schwartz, Esq., at Morris, Nichols, Arsht & Tunnell LLP, serves as the Debtor's bankruptcy counsel. Manistique Papers estimated assets of $10 million to $50 million and debts of $50 million to $100 million in its Chapter 11 petition. MANISTIQUE PAPERS: Court OKs Garden City as Claims Agent -------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware has approved Manistique Papers Inc.'s application to retain The Garden City Group, Inc. as claims, noticing, and balloting agent to the Debtor and Debtor in possession nunc pro tunc to the Petition Date. Upon retention, the firm, will among other things: a) prepare and serve required notices in the chapter 11 cases b) revise the creditor matrix after the objection period expires; c) record any order entered by the Court which may affect a claim by making a notation on the claims register; The Debtor proposes that the cost of GCG's services be paid from the Debtor's estate as provided by 28 U.S.C. Sec. 156(c) and 11 U.S.C. Sec. 503(b)(1)(A). The Debtor respectfully submits that GCG's rates for its services in connection with the notice, claims processing and solicitation services are competitive and comparable to the rates charged by their competitors for similar services. GCG is not connected with the Debtor, its creditors, the Office of the United States Trustee for the District of Delaware or any person employed by the Office of the United States Trustee for the District of Delaware. GCG may have relationships with certain of the Debtor's creditors as vendors or in connection with cases in which GCG serves or has served in a neutral capacity as claims and noticing agent for another chapter 11 debtor. About Manistique Papers Manistique Papers Inc. operates a landfill in Manistique, Michigan, whereby residuals resulting from paper production are deposited. Manistique Papers filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 11-12562) on Aug. 12, 2011. Daniel B. Butz, Esq., and Eric D. Schwartz, Esq., at Morris, Nichols, Arsht & Tunnell LLP, serves as the Debtor's bankruptcy counsel. Manistique Papers estimated assets of $10 million to $50 million and debts of $50 million to $100 million in its Chapter 11 petition. MARCO POLO: Taps Bracewell & Giulliani as Attorney -------------------------------------------------- Marco Polo Seatrade B.V. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York for permission to employ Bracewell & Giuliani LLP as their attorney to perform the legal services that will be necessary during these Chapter 11 cases. A hearing is set on Sept. 15, 2011, at 10:00 a.m., to consider the Debtors' request. Objections, if any, are due Sept. 8, 2011 at 4:00 p.m. The fee ranges for the firm's attorneys and paralegals that may be designated to represent the Debtors and their current, standard hourly rates are: Evan D. Flaschen, Esq., $1,050 Robert G. Burns, Esq. $800 Andrew J. Schoulder, Esq. $685 Partners $685-$1,050 Associates $315-$600 Paralegal $215-$255 The Debtors assure the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Marco Polo Marco Polo Seatrade B.V. operates an international commercial vessel management company that specializes in providing commercial and technical vessel management services to third parties. Founded in 2005, the Company mainly operates under the name of Seaarland Shipping Management and maintains corporate headquarters in Amsterdam, the Netherlands. The primary assets consist of six tankers that are regularly employed in international trade, and call upon ports worldwide. Marco Polo and three affiliated entities filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-13634) on July 29, 2011. The other affiliates are Seaarland Shipping Management B.V.; Magellano Marine C.V.; and Cargoship Maritime B.V. Marco Polo is the sole owner of Seaarland, which in turn is the sole owner of Cargoship, and also holds a 5% stake in Magellano. The remaining 95% stake in Magellano is owned by Amsterdam-based Poule B.V., while another Amsterdam company, Falm International Holding B.V. is the sole owner of Marco Polo. Falm and Poule didn't file bankruptcy petitions. The filings were prompted after lender Credit Agricole Corporate & Investment Bank seized one ship on July 21, 2011, and was on the cusp of seizing two more on July 29. The arrest of the vessel was authorized by the U.K. Admiralty Court. Credit Agricole also attached a bank account with almost US$1.8 million on July 29. The Chapter 11 filing precluded the seizure of the two other vessels. Evan D. Flaschen, Esq., Robert G. Burns, Esq., and Andrew J. Schoulder, Esq., at Bracewell & Giuliani LLP, serve as bankruptcy counsel. The cases are before Judge James M. Peck. The petition said assets and debt are both more than US$100 million and less than US$500 million. MARCO POLO: Taps Kurtzman Carson as Notice & Claims Agent --------------------------------------------------------- Marco Polo Seatrade B.V. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York for permission to employ Kurtzman Carson Consultants LLC as notice and claims agent. The Debtors also ask the Court for authority to employ the firm as their administrative agent. A hearing is set on Sept. 15, 2011, at 10:00 a.m., to consider the Debtors' request. Objections, if any, are due Sept. 8, 2011 at 4:00 p.m. According to the Debtors, the firm is fully equipped to handle the volume of mailing involved in properly sending required notices to and processing the claims of creditors and other interested parties in the Chapter 11 Cases. The firm's consulting services and their corresponding rates: Clerical $40- $60 Project Specialist $80-$140 Technology/Programming Consultant $100-$200 Consultant $125-$200 Senior Consultant $225-$275 Senior Managing Consultant $295-$295 The Debtors assure the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Marco Polo Marco Polo Seatrade B.V. operates an international commercial vessel management company that specializes in providing commercial and technical vessel management services to third parties. Founded in 2005, the Company mainly operates under the name of Seaarland Shipping Management and maintains corporate headquarters in Amsterdam, the Netherlands. The primary assets consist of six tankers that are regularly employed in international trade, and call upon ports worldwide. Marco Polo and three affiliated entities filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-13634) on July 29, 2011. The other affiliates are Seaarland Shipping Management B.V.; Magellano Marine C.V.; and Cargoship Maritime B.V. Marco Polo is the sole owner of Seaarland, which in turn is the sole owner of Cargoship, and also holds a 5% stake in Magellano. The remaining 95% stake in Magellano is owned by Amsterdam-based Poule B.V., while another Amsterdam company, Falm International Holding B.V. is the sole owner of Marco Polo. Falm and Poule didn't file bankruptcy petitions. The filings were prompted after lender Credit Agricole Corporate & Investment Bank seized one ship on July 21, 2011, and was on the cusp of seizing two more on July 29. The arrest of the vessel was authorized by the U.K. Admiralty Court. Credit Agricole also attached a bank account with almost US$1.8 million on July 29. The Chapter 11 filing precluded the seizure of the two other vessels. Evan D. Flaschen, Esq., Robert G. Burns, Esq., and Andrew J. Schoulder, Esq., at Bracewell & Giuliani LLP, serve as bankruptcy counsel. The cases are before Judge James M. Peck. The petition said assets and debt are both more than US$100 million and less than US$500 million. MARCO POLO: Committee Taps Blank Rome as Attorney ------------------------------------------------- The Official Committee of Unsecured Ceditors of Marco Polo Seatrade B.V. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York for permission to retain Blank Rome LLP as its attorney to provide legal services and advice as may be necessary for the orderly conduct of the Chapter 11 case. A hearing is set on Aug. 31, 2011, at 4:00 p.m., to consider the Committee's request. Objections, if any, are due Aug. 24, 2011, at 4:00 p.m. The firm's professionals will charge the Debtors' estates at these rates: Partners and Counsel $400-$815 Associates $225-$500 Legal Assistants $105-$290 The Committee assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Marco Polo Marco Polo Seatrade B.V. operates an international commercial vessel management company that specializes in providing commercial and technical vessel management services to third parties. Founded in 2005, the Company mainly operates under the name of Seaarland Shipping Management and maintains corporate headquarters in Amsterdam, the Netherlands. The primary assets consist of six tankers that are regularly employed in international trade, and call upon ports worldwide. Marco Polo and three affiliated entities filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-13634) on July 29, 2011. The other affiliates are Seaarland Shipping Management B.V.; Magellano Marine C.V.; and Cargoship Maritime B.V. Marco Polo is the sole owner of Seaarland, which in turn is the sole owner of Cargoship, and also holds a 5% stake in Magellano. The remaining 95% stake in Magellano is owned by Amsterdam-based Poule B.V., while another Amsterdam company, Falm International Holding B.V. is the sole owner of Marco Polo. Falm and Poule didn't file bankruptcy petitions. The filings were prompted after lender Credit Agricole Corporate & Investment Bank seized one ship on July 21, 2011, and was on the cusp of seizing two more on July 29. The arrest of the vessel was authorized by the U.K. Admiralty Court. Credit Agricole also attached a bank account with almost US$1.8 million on July 29. The Chapter 11 filing precluded the seizure of the two other vessels. Evan D. Flaschen, Esq., Robert G. Burns, Esq., and Andrew J. Schoulder, Esq., at Bracewell & Giuliani LLP, serve as bankruptcy counsel. The cases are before Judge James M. Peck. The petition said assets and debt are both more than US$100 million and less than US$500 million. MARCO POLO: Can Pay $1.2 Mil. to Critical Vendors on Interim Basis ------------------------------------------------------------------ The Hon. James M. Peck of the U.S. Bankruptcy Court for the Southern District of New York authorized, on an interim basis, Marco Polo Seatrade B.V. and its debtor-affiliates to pay or honor prepetition obligations to foreign vendors, service providers and governments and certain critical vendors for $1.2 million. A final hearing is set for Aug. 31, 2011, at 4:00 p.m., to consider approval of the Debtors' request. The Debtors are allowed, but not required, to pay or honor prepetition obligations to certain essential vendors that provide (a) essential goods to the Debtors that were received by the Debtors before the petition date; and (b) essential services that were rendered to the Debtors before the petition date. About Marco Polo Marco Polo Seatrade B.V. operates an international commercial vessel management company that specializes in providing commercial and technical vessel management services to third parties. Founded in 2005, the Company mainly operates under the name of Seaarland Shipping Management and maintains corporate Headquarters in Amsterdam, the Netherlands. The primary assets consist of six tankers that are regularly employed in international trade, and call upon ports worldwide. Marco Polo and three affiliated entities filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-13634) on July 29, 2011. The other affiliates are Seaarland Shipping Management B.V.; Magellano Marine C.V.; and Cargoship Maritime B.V. Marco Polo is the sole owner of Seaarland, which in turn is the sole owner of Cargoship, and also holds a 5% stake in Magellano. The remaining 95% stake in Magellano is owned by Amsterdam-based Poule B.V., while another Amsterdam company, Falm International Holding B.V. is the sole owner of Marco Polo. Falm and Poule didn't file bankruptcy petitions. The filings were prompted after lender Credit Agricole Corporate & Investment Bank seized one ship on July 21, 2011, and was on the cusp of seizing two more on July 29. The arrest of the vessel was authorized by the U.K. Admiralty Court. Credit Agricole also attached a bank account with almost US$1.8 million on July 29. The Chapter 11 filing precluded the seizure of the two other vessels. Evan D. Flaschen, Esq., Robert G. Burns, Esq., and Andrew J. Schoulder, Esq., at Bracewell & Giuliani LLP, serve as bankruptcy counsel. The cases are before Judge James M. Peck. The petition said assets and debt are both more than US$100 million and less than US$500 million. MARKET STREET: Wants Boxer Out of Escrow Account Distribution ------------------------------------------------------------- Market Street Properties, LLC, asks the U.S. Bankruptcy Court for the Eastern District of Louisiana to: i) determine that Boxer RE, L.P. has and continues to violate the automatic stay and has no authority or right to obstruct the release of the fund; ii) award sanctions, including attorney's fee against Boxer; iii) set an emergency interim hearing authorizing the release of $300,000 from the Environmental Escrow Account for use in payment of critical remediation of the property of the Debtor; and iv) grant final authority to use funds from the Environmental Escrow Account, and instructing the escrow agent to disregard any contrary comments or instructions by Boxer. The Debtor relates that contemporaneous with the execution of the escrow agreement, the Debtor executed a promissory note in favor of Boxer in the principal sum of $4,000,000 well as accompanying mortgage and security instruments which granted Boxer a second lien on the Market Street property. Prior to the Petition Date, Boxer issued correspondence dated Oct. 30, 2008, and Jan. 9, 2009, to the escrow agent asserting certain rights pursuant to the assignment and further asserting a blanket objection to distribution of funds from the escrow account. In an abundance of caution, the escrow agent has refused to make any distribution from the escrow account based in substantial part upon the Boxer letters. Remediation and $300,000 Release from Escrow The Debtor has engaged DEMCO, Inc., RiskNomics, and others as contractors to perform remediation of the Market Street Property. The Debtor relates that it does not have sufficient funds set aside in the DIP budget to pay outstanding invoices to DEMCO and RiskNomics for those asbestos remediation services amounting to $97,000, well as payment of a required deposit of $150,000 to DEMCO. The Debtor also asks the Court to authorize the release of $300,000 in proceeds from the escrow account to pay certain amounts related to remediation of the Market Street Property and to keep DEMCO and other contractors on site. The Debtor explains that the remediation of the Market Street Property will benefit Boxer as a creditor with an asserted security interest in the property. About Market Street Properties Oceanside, New York-based Market Street Properties, L.L.C., owns an approximately 500,000 square-foot power plant, two substations, and three parcels of vacant land. It filed for Chapter 11 bankruptcy (Bankr. E.D. La. Case No. 09-14172) on Dec. 23, 2009, represented by Christopher T. Caplinger, Esq., Joseph Patrick Briggett, Esq., and Stewart F. Peck, Esq., at LUGENBUHL WHEATON PECK RANKIN & HUBBARD, in New Orleans. The Company disclosed $52,404,026 in assets and $26,848,596 in liabilities as of the Chapter 11 filing. Cupkovic Architecture LLC serves as the Debtor's architect; and Patrick J. Gros, CPA, as accountant. James E. Fitzmorris, Jr. serves as political consultant and advisor. No trustee or examiner has been appointed in the case. MARKET STREET: Capital One Wants on Escrow Funds Release Method --------------------------------------------------------------- Capital One, N.A., creditor and party-in-interest in the Chapter 11 case of Market Street Properties, LLC, asks the U.S. Bankruptcy Court for the Eastern District of Louisiana to provide instructions as to how to disburse funds. Capital One is the escrow agent pursuant to the Environmental Escrow Agreement, dated January 2007, which was entered into among Capital One, the Debtor, and Entergy New Orleans, Inc. Capital One relates that on Dec. 26, 2006, the Debtor contracted to purchase from ENO certain real property located in New Orleans, Louisiana. In connection with the purchase, ENO and the Debtor agreed to set aside funds in escrow to be used to fund potential environmental remediation costs that could arise from the property, or to fund indemnification obligations arising from potential remediation efforts or assessments. Under the escrow agreement, Capital One is escrow agent and holds funds for disbursement to the Debtor, ENO, or third-parties, pursuant to various notices or instructions that are to be delivered to Capital One regarding the disbursements. Capital One notes that it has received various conflicting instructions regarding the escrowed funds. In light of the asserted claims and interests made by Boxer Finance, LLC, Capital One requests that the Court determine the proper recipient of disbursements as among the Debtor, ENO, or Boxer under the Escrow Agreement. Capital One says that it wants to assure performance of the escrow agreement according to its terms and protect Capital One from being exposed to claims for double payments on a single disbursement request. Capital One is represented by: Victoria White Baudier, Esq. 701 Poydras Street, Suite 4500 New Orleans, LA 70139 Tel: (504) 585-0283 Fax: (504) 566-0210 E-mail: Victoria.Baudier@arlaw.com - and - Jarrett L. Hale, Esq. Andrew E. Jillson, Esq. HUNTON & WILLIAMS LLP 1445 Ross Avenue, Suite 3700 Dallas, TX 75202 Tel: (214) 979-3000 Fax: (214) 880-0011 E-mail: jhale@hunton.com ajillson@hunton.com About Market Street Properties Oceanside, New York-based Market Street Properties, L.L.C., owns an approximately 500,000 square-foot power plant, two substations, and three parcels of vacant land. It filed for Chapter 11 bankruptcy (Bankr. E.D. La. Case No. 09-14172) on Dec. 23, 2009, represented by Christopher T. Caplinger, Esq., Joseph Patrick Briggett, Esq., and Stewart F. Peck, Esq., at LUGENBUHL WHEATON PECK RANKIN & HUBBARD, in New Orleans. The Company disclosed $52,404,026 in assets and $26,848,596 in liabilities as of the Chapter 11 filing. Cupkovic Architecture LLC serves as the Debtor's architect; and Patrick J. Gros, CPA, as accountant. James E. Fitzmorris, Jr. serves as political consultant and advisor. No trustee or examiner has been appointed in the case. MARKWEST ENERGY: Moody's Upgrades Corp. Family Rating to 'Ba2' -------------------------------------------------------------- Moody's Investors Service upgraded the Corporate Family Rating for MarkWest Energy Partners, L.P. to Ba2 from Ba3. In addition, Moody's upgraded the senior unsecured note rating to Ba3 from B1. The outlook is stable. RATINGS RATIONALE "The upgrade in the CFR reflects the progress MarkWest has made in bringing down its leverage despite an aggressive capital spending program," said Stuart Miller, Moody's Senior Analyst. "MarkWest is well-positioned to continue its growth, particularly in Appalachia where activity levels in the Marcellus Shale, and possibly the Utica Shale, will require significant infrastructure investment over the next five to ten years. As MarkWest expands its presence in the Marcellus Shale, Moody's expects an increase in fee-based processing earnings which would improve the business profile." MarkWest has geographic diversity and is one of the largest gas gatherers and processors in the Granite Wash, the Woodford Shale, and in the Marcellus Shale. Its scale and suite of services is a barrier to entry for competitors looking to enter, or gain market share, in these plays that are experiencing robust levels of drilling activity. MarkWest's EBITDA growth has out-paced its debt incurrence. As a result, leverage has declined, and as of June 30, 2011, the ratio of debt to EBITDA (with Moody's standard adjustments) stood at 3.7x. Moody's projections suggest that this level of leverage is sustainable, which is one of the primary drivers to the rating upgrade. Despite the growth prospects and prudent management of the balance sheet, the credit rating remains constrained by the commodity price risk that is inherent in MarkWest's gas processing contracts, and to a lesser degree, the volume risk associated with production decline rates and drilling activity levels. Roughly 65% of MarkWest's operating income is exposed to commodity price volatility, although much of the near term risk has been hedged with natural gas, crude oil, and a small portion of direct product hedges. The ratings also remain constrained by the master limited partnership organizational structure. Like many midstream master limited partnerships, MarkWest has substantial negative free cash flow because of significant growth capital expenditures and a high distribution payout level, both of which increase credit risk and reliance on external capital sources. Historically compared to its peers, MarkWest has used a disciplined approach to financing its growth with a balance of equity and debt issuance; the expectation for a continuation of this practice is an important factor in Moody's rating assessment. To satisfy its short term liquidity needs, MarkWest relies on its $745 million senior secured revolving credit facility. The credit facility matures in July 2015 and is currently unused other than about $30 million of letters of credit. The more than $700 million of amount of availability is sufficient to fund the Partnership's growth capital expenditures through 2012 alleviating any risk associated with its ability to raise debt or equity in the capital markets. To be considered for any additional positive rating actions, MarkWest would need to show a commitment to maintaining leverage below 3.5x, or significantly increase the proportion of its operating income generated through fee-based contracts. Alternatively, a negative action could result if leverage increases to 4.5x either due to the issuance of additional debt or a fall off in operating performance. The principal methodology used in rating MarkWest Energy Partners, L.P. was the Global Midstream Energy rating methodology published in November 2010. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found on Moody's website. MAS TEC: Moody's Keeps Ba3 Corporate After Expanded Bank Credit --------------------------------------------------------------- Moody's Investors Service said MasTec, Inc.'s ratings, including its Ba3 corporate family rating and the B1 rating on its $150 million senior unsecured notes due 2017, are not affected by the company's announcement that it amended and restated its revolving credit facility (unrated), increasing the commitment to $600 million from $260 million and extending the maturity date to August 2016 from May 2013. The ratings outlook remains positive. Corporate family rating at Ba3; Probability of default rating at Ba3; $150 million 7.625% senior unsecured notes due 2017 at B1 (LGD5, 79%); Speculative grade liquidity rating at SGL-2. The amended and restated revolving credit facility results in a revision to the point estimates for the B1 rated $150 million senior unsecured notes due 2017 to (LGD5, 79%) from (LGD4, 67%). The last rating action was on April 29, 2011 when Moody's affirmed MasTec's Ba3 corporate family rating and revised the ratings outlook to positive from stable. The principal methodology used in rating MasTec was the Global Construction Industry Methodology, published November 2010. Other methodologies used include Loss Given Default for Speculative Grade Issuers in the US, Canada, and EMEA, published June 2009. MasTec, Inc., headquartered in Coral Gables, Florida, is a leading national infrastructure company operating in the United States. The company reported revenues of approximately $2.7 billion for the twelve months ended June 30, 2011. MATCHES INC: Reports $892,200 Net Income in 2nd Quarter ------------------------------------------------------- Matches, Inc., filed its quarterly report on Form 10-Q, reporting net income of $892,246 on $30.4 million of sales for the three months ended June 30, 2011, compared with net income of $840,195 on $19.8 million of sales for the same period last year. The Company reported net income of $1.7 million on $49.2 million of sales for the six months ended June 30, 2011, compared with net income of $1.5 million on $30.7 million of sales for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $60.3 million in total assets, $43.2 million in total liabilities, and stockholders' equity of $17.1 million. As of June 30, 2011, and Dec. 31, 2010, the Company had negative working capital of $5.7 million and $6.1 million. As reported in the TCR on April 11, 2011, Bernstein & Pinchuk, LLP, in New York, expressed substantial doubt about Matches, Inc.'s ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has negative working capital as of Dec. 31, 2010, and 2009. A copy of the Form 10-Q is available at http://is.gd/m7WzjS Matches, Inc. was incorporated pursuant to the laws of the State of Wyoming on Nov. 28, 2007. The Company is a premium chemical fiber manufacturer of polyester fibers with operations based in Suzhou, Jiangsu Province, China. The Company primarily sells its products to local distributors and textile manufacturers in the People's Republic of China. MAYVILLE DIE: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Mayville Die & Tool, Inc. 700 N. Furnace Street Mayville, WI 53050 Bankruptcy Case No.: 11-33128 Chapter 11 Petition Date: August 25, 2011 Court: United States Bankruptcy Court Eastern District of Wisconsin (Milwaukee) Judge: James E. Shapiro Debtor's Counsel: Jane(Ginger) F. Zimmerman, Esq. Rebecca R. DeMarb, Esq. MURPHY DESMOND S.C. P.O. Box 2038 33 East Main Street, Suite 500 Madison, WI 53701-2038 Tel: (608) 257-7181 Fax: (608) 257-4333 E-mail: jzimmerman@murphydesmond.com rdemarb@murphydesmond.com Scheduled Assets: $2,603,622 Scheduled Debts: $3,221,806 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/wieb11-33128.pdf The petition was signed by Glen Helmbrecht, president. MCC HUMBLE: Court Directs Removal of Maaco Signage -------------------------------------------------- Bankruptcy Judge Letitia Z. Paul conditioned the automatic stay in the bankruptcy case of MCC Humble Auto Paint, Inc., on its removal of Maaco Franchising, Inc.'s signs and identification. In July 2006, James M. Gaarder, president of the Debtor, entered into a franchise agreement with Maaco to open a "Maaco Center," defined under the franchise agreement as a center "specializing in vehicle painting and body repair," in Humble, Texas. Mr. Gaarder assigned his rights under the franchise agreement to the Debtor. On Jan. 31, 2011, Maaco gave notice to the Debtor and Mr. Gaarder that they were in default in, inter alia, paying franchise fees due under the franchise agreement. On May 11, 2011, it filed suit against the Debtor and Mr. Gaarder in the United States District Court for the Eastern District of Pennsylvania, seeking, inter alia, injunctive relief enforcing the covenants of the franchise agreement. A preliminary injunction hearing was set for June 7, 2011, the date on which the Debtor filed its Chapter 11 petition. Maaco seeks lifting of the automatic stay, in order to seek an injunction prohibiting the Debtor from conducting any operations. A copy of Judge Paul's Aug. 25, 2011 Memorandum Opinion is available at http://is.gd/uNym52from Leagle.com. MCC Humble Auto Paint, Inc. -- aka MCC Humble Auto Paint and Maaco Colllision Repair and Auto Painting -- filed for Chapter 11 bankruptcy (Bankr. S.D. Texas Case No. 11-34994) on June 7, 2011, listing under $1 million in assets and debts. A copy of the Debtor's petition is available at no charge at http://bankrupt.com/misc/txsb11-34994.pdf MCCLATCHY CO: Royal Bank Discloses 5.7% Equity Stake ---------------------------------------------------- In a Schedule 13G filing with the U.S. Securities and Exchange Commission, The Royal Bank of Scotland N.V. and its affiliates disclosed that they beneficially own 3,462,027 shares of common stock of The McClatchy Company representing 5.73% of the shares outstanding, based on 60,402,712 of Ordinary Shares reported to be outstanding. A full-text copy of the filing is available at no charge at http://is.gd/JgClXo About The McClatchy Company Sacramento, Calif.-based The McClatchy Company (NYSE: MNI) -- http://www.mcclatchy.com/-- is the third largest newspaper company in the United States, publishing 30 daily newspapers, 43 non-dailies, and direct marketing and direct mail operations. McClatchy also operates leading local websites in each of its markets which extend its audience reach. The websites offer users comprehensive news and information, advertising, e-commerce and other services. Together with its newspapers and direct marketing products, these interactive operations make McClatchy the leading local media company in each of its premium high growth markets. McClatchy-owned newspapers include The Miami Herald, The Sacramento Bee, the Fort Worth Star-Telegram, The Kansas City Star, The Charlotte Observer, and The News & Observer (Raleigh). The Company's balance sheet at June 30, 2011, showed $3.05 billion in total assets, $2.85 billion in total liabilities, current and non-current, and $203.47 million in total stockholders' equity. * * * In February 2010, Moody's Investors Service upgraded The McClatchy Company's Corporate Family Rating to Caa1 from Caa2, Probability of Default Rating to Caa1 from Caa2, and senior unsecured and unguaranteed note ratings to Caa2 from Caa3, concluding the review for upgrade initiated on January 27, 2010. The upgrades reflect McClatchy's improved liquidity position and reduced near-term default risk following completion of the company's refinancing, and its ability to stabilize EBITDA performance through significant cost reductions. The rating outlook is stable. In the May 12, 2011, edition of the TCR, Standard & Poor's Ratings Services lowered its corporate credit rating on Sacramento, Calif.-based The McClatchy Co. to 'B-' from 'B'. "The downgrade reflects our expectation that continued declines in advertising revenues will outweigh the company's cost reduction measures, resulting in steadily rising debt leverage over the intermediate term despite some modest debt reduction that will likely occur over the near term," said Standard & Poor's credit analyst Harold Diamond. The 'B-' corporate credit rating on Sacramento, Calif.- based McClatchy reflects Standard & Poor's expectation that advertising revenues will decline at a high-single-digit% rate in 2011, and EBITDA will fall at a mid-double-digit pace. As reported by the Troubled Company Reporter on Feb. 8, 2011, Fitch Ratings has upgraded the Issuer Default Rating of the McClatchy Company to 'B-'. The Rating Outlook is Stable. The revenue declines endured by McClatchy in 2010 were materially lower than Fitch's expectation. Fitch had modeled declines in the mid-teens versus actual declines in the mid-single digits. While Fitch expected the company to focus on cost containment, the company's success exceeded Fitch expectations. Fitch had expected EBITDA to decline more than 10% versus actual EBITDA growth in the mid-single digits. As a result absolute debt and leverage were better than Fitch expectations. Fitch estimates 2010 year end gross unadjusted leverage of approximately 4.7 times. Fitch expects the company will be able to meet its pension funding obligations and satisfy all of its maturities up to and including its senior unsecured notes due in 2014 ($169 million balance as of Sept. 30, 2010). Also, Fitch does not expect McClatchy will have any issues meeting its credit agreement financial covenants (under both Fitch's base and stress cases). MCDERMOTT INT'L: Moody's Affirms 'Ba1' Corporate Family Rating -------------------------------------------------------------- Moody's Investors Service assigned a Baa3 rating to McDermott International Inc.'s new $950 million senior secured bank facility (due 2016) and affirmed the company's Ba1 corporate family rating and Ba2 probability of default rating. Moody's has withdrawn the Baa3 rating on MDR's prior $900 million senior secured facility (due 2014), which has been replaced by the new facility. RATINGS RATIONALE MDR's Ba1 corporate family rating reflects its leading position in offshore oil and gas engineering and construction, a niche market segment that has favorable long-term fundamentals. This E&C industry segment is, however, highly competitive and cyclical and MDR's large, fixed-price contracts are susceptible to cost overruns. These risks are mitigated by the company's significant order backlog, late-cycle contributions, a focus on project risk management and MDR's strong market position. While the rating incorporates Moody's expectation that acquisition activity and/or increased capital expenditures may consume cash and cause its adjusted leverage to rise from less than 1x currently, Moody's expects MDR's balance sheet will remain conservatively leveraged (comfortably below 2x adjusted Debt/ EBITDA) and supported by strong liquidity, providing meaningful cushion against the downside risks inherent in its business. MDR's bank facility is guaranteed by its wholly owned subsidiaries and secured by certain assets of the company and the subsidiary guarantors. The facility is rated one notch higher than the corporate family rating to reflect the benefit of the security package, which positions the facility ahead of other claims, primarily consisting of trade payables and a small amount of underfunded pension obligations. MDR's new bank facility was not drawn at the close of the transaction, although about $286 million in letters of credit were outstanding. The stable outlook considers Moody's view that while MDR's measures of financial strength may periodically weaken due to contract issues or, longer term, to pursue strategic growth initiatives, the company's balance sheet is expected to remain conservatively leveraged while its strong liquidity position provides additional downside protection. Upwards movement of MDR's ratings is unlikely in the near term but could occur on a longer term basis should the company demonstrate consistent disciplined bidding practices and strong project execution. Key credit metrics associated with an upgrade would include adjusted Debt/ EBITDA sustained below 1.25x. The rating could be lowered should cost overruns lead to sustained EBITA margins in the mid single digits, or should the company's balance sheet deteriorate through either its growth ambitions or shareholder return initiatives such that adjusted Debt/ EBITDA was expected to be sustained above 2x. Moody's last rating action on MDR was on August 4, 2011 when Moody's affirmed all of the company's ratings. The principal methodology used in rating MDR was the Global Construction Industry Methodology, published November 2010. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA, published June 2009. Headquartered in Houston, Texas, McDermott International, Inc. is a leading full-service engineering and construction company focused exclusively on offshore upstream oil & gas. Revenues for the last twelve months ended June 30, 2011 were about $3 billion. MFJT LLC: Hearing on Cash Collateral Use Continued Until Oct. 25 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois has continued until Oct. 25, 2011, at 10:00 a.m., the hearing to consider MFJT, LLC's request to access the cash collateral of BACM 2007-3 Aslip Complex, LLC. As reported in the Troubled Company Reporter on July 20, 2011, the lender will be granted valid, perfected, enforceable security interests in the Debtor's posit-petition assets, including proceeds and products thereof. Among other things, the Debtor will maintain and pay premiums for insurance to cover all of its assets form fire, theft and water damages as adequate protection. About MFJT, LLC Alsip, Illinois-based MFJT, LLC -- dba Somerset Park Apartments and Somerset II -- filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 11-11819) on March 22, 2011. David K. Welch, Esq., at Crane Heyman Simon Welch & Clar, serves as the Debtor's bankruptcy counsel. The Debtor proposes to employ Tailwind Services, LLC as its financial advisor. The Debtor disclosed $16,137,365 in assets and $17,952,853 in liabilities as of the Chapter 11 filing. MICHAELS STORES: Posts $10 Million Net Income in July 30 Quarter ---------------------------------------------------------------- Michaels Stores, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting net income of $10 million on $857 million of net sales for the quarter ended July 30, 2011, compared with a net loss of $1 million on $831 million of net sales for the quarter ended July 31, 2010. The Company also reported net income of $47 million on $1.81 billion of net sales for the six months ended July 30, 2011, compared with net income of $12 million on $1.73 billion of net sales for the six months ended July 31, 2010. The Company's balance sheet at July 30, 2011, showed $1.57 billion in total assets, $4.19 billion in total liabilities, and a $2.61 billion total stockholders' deficit. John Menzer, chief executive officer, said, "We are pleased with the record levels of operating performance and continued balance sheet improvements achieved during the second quarter and year-to- date periods. As we continue on the path to becoming a world class retailer, these accomplishments reflect the progress we have achieved in improving the business across the entire organization." A full-text copy of the Form 10-Q is available for free at: http://is.gd/tkXq7e About Michaels Stores Headquartered in Irving, Texas, Michaels Stores, Inc., is the largest arts and crafts specialty retailer in North America. As of March 9, 2009, the Company operated 1,105 "Michaels" retail stores in the United States and Canada and 161 Aaron Brothers Stores. * * * Michaels Stores carries a 'B3' corporate family rating from Moody's Investors Service. As reported by the Troubled Company Reporter on Oct. 8, 2010, Moody's assigned Caa1 rating to Michaels Stores's proposed $750 million senior unsecured bonds due 2018. Proceeds from the note offering will be used to tender for an existing $750 million series of unsecured notes. The refinancing, while improving the maturity profile of the company, has no impact on Michaels' current capital structure or ratings. Moody's said Michaels' CFR reflects its significant financial leverage and weak credit metrics. It also recognizes Michaels' leadership position in the highly fragmented arts and crafts segment, and its high operating margins. The rating takes into consideration the company's participation in some segments that have greater sensitivity to economic conditions, such as its custom framing business. Michaels' ratings also reflect its good liquidity with limited near term debt maturities. MILLENNIUM GLOBAL: U.S. Court Recognizes Bermuda Case ----------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the Bermudian liquidators for Millennium Global Emerging Credit Master Fund Ltd. are entitled to use bankruptcy courts in the U.S., Bankruptcy Judge Allan Gropper ruled in a 36-page opinion on Aug. 26. According to the report, Judge Gropper ruled that the court in Bermuda should be the primary court in charge of the bankruptcy. BCP Securities LLC, which is being investigated by the liquidators and may be sued, objected to a finding that Bermuda was the companies' "center of main interests." Judge Gropper disagreed, ruling that Bermuda is entitled to recognition as the "foreign main bankruptcy." He therefore approved the Chapter 15 petition. The ruling means that the liquidators from Bermuda may use U.S. courts to perform an investigation and file suits. A separate objection by GlobeOp Financial Services, LLC was withdrawn after an agreement between the parties that if recognition were granted, the automatic stay would not prevent GlobeOp from pursuing any claims it may have against the Funds outside the United States. Meanwhile, Bermuda will distribute assets to creditors and determine the validity of claims, according to the report. Mr. Rochelle notes that Judge Gropper, a U.S. bankruptcy judge in New York, disagreed with two prior rulings from other courts and ruled that the location of the COMI, or center of main interests, should be based on facts existing when the first liquidation began in Bermuda. He disagreed with other courts believing that the plain meaning of Chapter 15 requires using facts when the Chapter 15 petition was filed. According to Mr. Rochelle, the funds' COMI was in Bermuda, Judge Gropper said, because two of the three directors were from Bermuda while a bank, the custodian, and the auditor were also in Bermuda. Judge Gropper said that Bermuda was the "only reasonably ascertainable" COMI even though there were no creditors nor any investors in Bermuda and the funds' manager was in the U.K. To find the COMI anywhere else would be "pure speculation," Judge Gropper said. Judge Gropper also said there was "insufficient evidence" to find a COMI anywhere besides Bermuda. Judge Gropper, according to Mr. Rochelle's report, distinguished a Chapter 15 case involving two hedge funds created by Bear Stearns Cos. where U.S. Bankruptcy Judge Burton Lifland concluded that the Cayman Island weren't the COMI because the business was run out of New York. Judge Gropper ended his opinion by ruling that the liquidators were entitled to a two-year extension on time limits for filing lawsuits under Section 108 of the Bankruptcy Code. Judge Gropper said in his opinion that some $9 million already was spent by the liquidators for lawyers in Bermuda and the U.S. Chapter 15 is not a full-blown bankruptcy. It's designed to assist a primary bankruptcy pending outside the U.S. A copy of Judge Gropper's Aug. 26, 2011 Memorandum of Decision is available at http://is.gd/vPYXvHfrom Leagle.com. Attorneys for BCP Securities, LLC, are: Marc D. Powers, Esq. Oren J. Warshavsky, Esq. Natacha Carbajal, Esq. BAKER & HOSTETLER LLP 45 Rockefeller Plaza, 11th Floor New York, NY 10111 Tel: 212-589-4216 Fax: 212-589-4201 E-mail: mpowers@bakerlaw.com owarshavsky@bakerlaw.com ncarbajal@bakerlaw.com Attorney for GlobeOp Financial Services, LLC, is: Jonathan D. Cogan, Esq. KOBRE & KIM LLP 800 Third Avenue New York, NY 10022 Tel: 212-488-1206 Fax: 212-488-1226 E-mail: Jonathan.Cogan@kobrekim.com About Millennium Global Funds Millennium Global Emerging Credit Fund Limited and Millennium Global Emerging Credit Master Fund Limited filed petitions under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case Nos. 11-13171 and 11-13172) on June 30, 2011. The two Millennium entities were a pair of Bermuda-based funds created to invest in sovereign and corporate debt instruments. They were once affiliated with U.K. investment manager Millennium Global Investments Ltd. The two Funds were ill-equipped to survive the financial downturn of late 2008. They went into liquidation in Bermuda in October 2008 following default with their prime brokers. Michael W. Morrison, Charles Thresh and Richard Heis at KPMG Advisory Ltd. have been appointed as liquidators and foreign representatives of the Millennium funds in proceedings pending before the Supreme Court of Bermuda, Commercial Court. Judge Allan L. Gropper presides over the Chapter 15 cases. Susheel Kirpalani, Esq., at Quinn Emanuel Urquhart & Sullivan LLP, serves as counsel to the Foreign Representatives. The Foreign Representatives estimated the assets of Millennium Global Emerging Credit Master Fund between US$10 million and US$50 million, and its debts between US$100 million and US$500 million. Millennium Global Emerging Credit Fund's assets and debts are estimated to be between US$10 million to US$50 million. MRA PELICAN: Court OKs Shraiberg Ferrara as Bankruptcy Counsel -------------------------------------------------------------- The Southern District of California has approved MRA Pelican Pointe Apartments, LLC's application to employ Shraiberg Ferrara & Landau P.A. as Chapter 11 counsel. SFL will be paid at these rates: Attorneys $250 - $425 per hour Legal assistants $110 per hour Bradley S. Shraiberg, Esq. $425 per hour Prior to the Petition Date, 3611 Joint Venture LLC paid SFL a $15,000 retainer and 247 West 38th Realty Corp. paid SFL a $20,000 retainer. An insider of the Debtor controls 3611 Joint Venture and 247 West. The retainer letter governing the firm's engagement provides that a person or entity will provide SFL with an additional payment of $7,000 on behalf of the Debtor within 30 days and $8,000 within 60 days. Mr. Shraiberg, a partner at SFL, attests that his firm does not represent any interest adverse to the Debtor, its estates or its creditors. About MRA Pelican Pointe MRA Pelican Pointe Apartments, LLC, owns an apartment complex commonly known as Whispering Isles Apartments in Pompano Beach, Florida. The property was being managed by Aryeh Kieffer of Boca Raton-based Addison Advisors. Pre-bankruptcy, Fannie Mae initiated a foreclosure action against the property in the Circuit Court of the 17th Judicial Circuit in and for Broward County, Florida. At Fannie Mae's behest, Margaret Smith of Glass Ratner Advisory & Capitol Group LLC was appointed as receiver. The receiver has administered and operated the apartment complex since May 17, 2011. MRA Pelican filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 11-32457) on Aug. 10, 2011. Addison Advisors' Mr. Kieffer signed the petition. The Debtor's bankruptcy counsel is: Bradley S. Shraiberg, Esq. SHRAIBERG, FERRARA, & LANDAU P.A. 2385 NW Executive Center Drive, #300 Boca Raton, FL 33431 Tel: (561) 443-0801 Fax: (561) 998-0047 E-mail: bshraiberg@sfl-pa.com In its schedules, the Debtor listed $12,003,200 in assets and $14,661,009 in debts. Fannie Mae is represented by Gary M. Freedman, Esq., and Mark S. Roher, Esq., at Tabas, Freedman, Soloff, Miller & Brown, P.A. MSR RESORT: Resigned Members Want Settlement Agreement Denied ------------------------------------------------------------- Resigned members of MSR Resort Golf Course LLC, et al.'s country club, ask the U.S. Bankruptcy Court for the Southern District of New York to deny the settlement agreement entered with La Quinta Member Representatives. James A. Hamilton, premier member of PGA West Golf Club with resigned membership in December 2005, states that he is entitled to $30,000 payment under the member deposit refund provisions of GA West Membership Plan. Mr. Hamilton says that the settlement agreement must be denied because, among other things: -- neither the active nor the resigned members voted on or consented to the proposed settlement agreement; -- the La Quinta Member Representatives were chosen by the active members and the resigned members were not given a vote in the election of these representatives, Mr. Hamilton adds that he did not authorize the La Quinta to negotiate the settlement agreement on his behalf and there is nothing in the record to suggest that any other resigned member did so; -- the interest of the active and resigned members are in material conflict on some issues. Mr. Hamilton says that the resigned members are concerned with the refund of their deposits while the active members' concern is the ongoing high quality operation of the clubs at current dues level. According to Mr. Hamilton, the motion if granted, will bind all the members, including all of the resigned members, to a membership plan, a. the terms of which have been substantially altered; b. to the substantial benefit of the Debtors and disproportionate detriments of the resigned members as compared to the active members; c. as a result of negotiations by negotiators not authorized to act for the resigned members who never told them about the terms under negotiation, much less sought their input, comment, or approval of the same. In a separate motion, Carl & Maria Nordquist, inactive members of the Citrus Country Club, state that they have serious concerns on the "opt out" terms under the settlement agreement. The terms in the (b) option lack specificity in that they can not understand how they would be treated if they choose to opt out. Mr. and Mrs. Nordquist state that it is important that they receive an appropriate and just degree of certainty. They claim that they have been on the resign list for about eight years and are No. 2 to receive their resign refund of $85,000. Kiki Leslie A. Tidwell, in her motion, states that the settlement agreement offers an option to resigned members to opt out of the 50% reduction of the resign funds with two additional provisions. Ms. Tidwell relates that the Debtors can increase resigned list ratios to 4-for-1 at the Citrus Club or pay the resign funds at net present value as a claim of the Debtors' estate. Ms. Tidwell adds that she can only agree to the revised settlement if those provisions were dropped and a resigned member is allowed to opt out of the 50% reduction, with no diminishment in any other rights. A full-text copy of the Settlement Agreement is available for free at http://bankrupt.com/misc/MSRRESORT_settlement_proposedorder.pdf Ms. Tidwell is represented by: JAMES H.M. SPRAYGREEN, P.C. Paul M. Basta, Esq. Edward O. Sassower, Esq. Chad J. Husnk, Esq. KIRKLAND & ELLIS LLP 601 Lexington Avenue New York, NY 10022 About MSR Resort MSR Hotels & Resorts, formerly known as CNL Hotels & Resorts Inc., owns a portfolio of eight luxury hotels with over 5,500 guest rooms, including the Arizona Biltmore Resort & Spa in Phoenix, the Ritz-Carlton in Orlando, Fla., and Hawaii's Grand Wailea Resort Hotel & Spa in Maui. On Jan. 28, 2011, CNL-AB LLC acquired the equity interests in the portfolio through a foreclosure proceeding. CNL-AB LLC is a joint venture consisting of affiliates of Paulson & Co. Inc., a joint venture affiliated with Winthrop Realty Trust, and affiliates of Capital Trust, Inc. Morgan Stanley's CNL Hotels & Resorts Inc. owned the resorts before the Jan. 28 foreclosure. Following the acquisition, five of the resorts with mortgage debt scheduled to mature on Feb. 1, 2011, were sent to Chapter 11 by the Paulson and Winthrop joint venture affiliates. MSR Resort Golf Course LLC and its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-10372) in Manhattan on Feb. 1. The resorts subject to the filings are Grand Wailea Resort and Spa, Arizona Biltmore Resort and Spa, La Quinta Resort and Club and PGA West, Doral Golf Resort and Spa, and Claremont Resort and Spa. James H.M. Sprayregen, P.C., Esq., Paul M. Basta, Esq., Edward O. Sassower, Esq., and Chad J. Husnick, Esq., at Kirkland & Ellis, LLP, serve as the Debtors' bankruptcy counsel. Houlihan Lokey Capital, Inc., is the Debtors' financial advisor. Kurtzman Carson Consultants LLC is the Debtors' claims agent. The five resorts had $2.2 billion in assets and $1.9 billion in debt as of Nov. 30, 2010, according to court filings. In its schedules, debtor MSR Resort disclosed $59,399,666 in total assets and $1,013,213,968 in total liabilities. NORTHCORE TECHNOLOGIES: Has "Speculative Buy" Rating from Byron --------------------------------------------------------------- Northcore Technologies Inc. announced that Byron Capital Markets has initiated coverage on Northcore Technologies with a Speculative Buy rating and a target price of CAD$1.00. In their 20-page research report, Special Situations analyst Al P. Nagaraj provides a comprehensive overview of the Company. The report identifies future drivers of growth as Northcore's online commercial platforms for large enterprises, including novel social commerce environments. About Northcore Toronto, Ontario-based Northcore Technologies Inc. (TSX: NTI; OTC BB: NTLNF) -- http://www.northcore.com/-- provides a Working Capital Engine(TM) that helps organizations source, manage, appraise and sell their capital equipment. Northcore offers its software solutions and support services to a growing number of customers in a variety of sectors including financial services, manufacturing, oil and gas and government. Northcore owns 50% of GE Asset Manager, LLC, a joint business venture with GE. Together, the companies work with leading organizations around the world to help them liberate more capital value from their assets. Northcore reported a net loss for the first quarter of C$574,000. This compares with a net loss of C$677,000 in the fourth quarter of 2010. In the first quarter of 2010, Northcore reported a net loss of $713,000. Northcore reported consolidated revenues of C$183,000 for the first quarter, an increase of 4% over the C$176,000 reported in the fourth quarter of 2010. In the same period of 2010, Northcore reported consolidated revenues of C$150,000. Certain adverse conditions and events cast substantial doubt upon the ability of the Company to continue as a going concern, the Company said in the filing. "The Company has not yet realized profitable operations and has relied on non-operational sources of financing to fund operations." The Company's balance sheet at June 30, 2011, showed C$1.39 million in total assets, C$1.33 million in total liabilities and C$61,000 in total shareholders' equity. MTB BRIDGEPORT: WSAH, TV42 in Bridgeport, Files Ch. 11 to Sell -------------------------------------------------------------- MTB Bridgeport-NY Operating LLC, the owner of television station WSAH, channel 42, filed a Chapter 11 petition (Bankr. D. Del. Case No. 11-12707) on Aug. 26. Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the Debtor intends to sell the business on a $12 million credit bid to secured lenders owed $5.3 million on a first-lien revolving credit and $68.6 million on two first-lien term loans. NRJ TV LLC acquired the first-lien debt in September 2010. One of the owners of NRJ, Titan Broadcast Management LLC, is currently operating the station. Four other sister stations were already sold for cash. There is also $46.3 million in second-lien debt. Drawbridge Special Opportunities Fund LP is agent for the senior lenders. The loans were in default since 2007. According to the report, NRJ is proposing to be the so-called stalking horse bidder at an auction to be sanctioned by the bankruptcy court. Rather than cash, NRJ would purchase the station in exchange for $12 million in secured debt and the obligation to pay the cost of curing contract defaults on contracts to be taken over in the sale. Mr. Rochelle relates that the lenders are providing $650,000 in secured lending to finance the Chapter 11 case. The station currently broadcasts 12 hours of programming each day provided on a barter basis by Retro Television Network. The other 12 hours are paid programming. NTELOS HOLDINGS: S&P Affirms 'BB-' Corporate Credit Rating ---------------------------------------------------------- Standard & Poor's Ratings Services affirmed the 'BB-' corporate credit rating and stable outlook on NTELOS Holdings Inc. "At the same time, we placed the issue-level rating on NTELOS' secured credit facilities on CreditWatch with negative implications. Subsequent to the spin-off of the wireline properties, we expect to lower the rating on NTELOS' secured debt to 'BB-' from 'BB', reflecting our view of weaker recovery prospects. The revised recovery rating on the secured debt after the wireline spin-off will be '3', indicating our expectation for meaningful (50% to 70%) recovery of principal in the event of a default. The current recovery rating of '2', which does not incorporate the impact of the wireline separation, indicates an expectation of substantial (70% to 90%) recovery," S&P related. "The 'BB-' corporate credit rating and stable outlook on Waynesboro, Va.-based communications provider NTELOS incorporate the impact of the pending separation of the company's wireless and wireline businesses," explained Standard & Poor's credit analyst Richard Siderman. NTELOS will become a pure regional wireless company upon the spin-off its competitive local exchange (CLEC) and rural local exchange (RLEC) businesses to newly created Lumos Networks Inc (Lumos). As part of the transaction, which NTELOS expects to close in 2011, unrated Lumos will pay NTELOS a dividend of between $315 million to $325 million, the bulk of those proceeds to be used by NTELOS to repay a portion of its term loan, reducing the outstanding balance to under $460 million. "We expect to lower the secured debt rating by one notch upon separation of the two businesses," said Mr. Siderman, "reflecting our view that despite the reduction of the term loan from the Lumos dividend, spinning off the wireline properties weakens recovery prospects for NTELOS' secured credit facilities." In particular, that view contemplates the potential scenario in which the Sprint wholesale services contract, responsible for a significant and growing share revenue, either is not renewed in 2015 or is renewed under markedly less favorable terms. "Accordingly, we expect to revise the recovery rating for the secured credit facilities to '3', indicating our expectation of 50%-70% recovery of principal in the event of a default from the current '2' recovery rating, which denotes 70%-90% recovery of principal," S&P related. NUTRITION 21: Case Summary & 12 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Nutrition 21, Inc. 4 Manhattanville Road Purchase, NY 10577 Bankruptcy Case No.: 11-23712 Affiliates that simultaneously sought Chapter 11 protection: Debtor Case No. ------ -------- Nutrition 21, LLC 11-23713 Hearts Content, Inc. 11-23714 Iceland Health, LLC 11-23715 Chapter 11 Petition Date: August 26, 2011 Court: U.S. Bankruptcy Court Southern District of New York (White Plains) Judge: Robert D. Drain Debtor's Counsel: Michael Friedman, Esq. RICHARDS KIBBE & ORBE One World Financial Center, 29th Floor New York, NY 10281 Tel: (212) 530-1846 Fax: (212) 530-1801 E-mail: mfriedman@rkollp.com Lead Debtor's Scheduled Assets: $7,225,234 Lead Debtor's Scheduled Debts: $112,845,276 The petitions were signed by Alan Kirschbaum, chief financial officer. List of 12 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Nutrition 21, LLC Intercompany $110,630,797 4 Manhattanville Road Receivable Purchase, NY 10577 Walgreen Co. Inc. Legal Dispute $1,600,000 200 Wilmont Road Deerfield, IL 60015 Ultimate Formulations Inc. Legal Dispute $126,184 dba Best Formulations James Komorowski Employee Wages and $98,245 Benefits Steven Sundell Employee Wages and $58,295 Benefits Alpha Jallow Employee Wages and $44,923 Benefits David Pagura Employee Wages and $34,892 Benefits US Customs and Borders Protect Legal Dispute $30,949 Cassie Tillman-Randall Employee Wages and $20,408 Benefits Gail Kraljevic Employee Wages and $19,286 Benefits Kate Wallour Employee Wages and $8,562 Benefits Joanne Goldstein Employee Wages and $3,150 Benefits OMEGA NAVIGATION: HSH Nordbank Seeks Case Dismissal or Conversion ----------------------------------------------------------------- HSH Nordbank AG, agent for certain banks as lenders under the senior facilities agreement, asks the U.S. Bankruptcy Court for the Southern District of Texas to dismiss the Chapter 11 cases of Omega Navigation Enterprises, Inc. and its debtor-affiliates or convert them to cases under Chapter 7 of the Bankruptcy Code. Robin Russell, Esq., at Andrews Kurth LLP, in Houston, Texas, contends that the Debtors filed the cases solely as a litigation tactic in their campaign against the Senior Facilities Lenders and to avoid repayment of their senior secured loan obligations. The Senior Facilities Lenders' claims aggregating $242.72 million in outstanding principal plus unpaid prepetition interest, fees, and expenses, has already exceeded the value of the collateral whose value is diminishing, Mr. Russell tells the Court. The collateral is composed of eight ships worth $239 million. Mr. Russell notes that the Debtors are operating the Ships and using the Senior Facilities Lenders' cash collateral to fund the Chapter 11 cases. He adds that the Debtors have suggested no steps they intend to take to reorganize and emerge from Chapter 11 as viable entities. "Rather the Debtors' entire reorganization plan is an open ended wager by entrenched management with the Senior Facilities Lenders' collateral at stake," Mr. Russell says. The Law demands that the Senior Facilities Lenders are not required to bear the risk, and the Chapter 11 cases should be dismissed or converted to Chapter 7 as soon as possible. Furthermore, Mr. Russell notes that the Debtors are foreign Debtors organized under foreign law with minimal contacts in the United States and whose principal secured creditors are non-U.S. banks. He adds that their loan agreements were negotiated outside the United States and are governed by English law, which provides that the courts of England are the exclusive forum for resolution of disputes thereunder. Mr. Russell tells the Court that the Debtors are being sued by the Senior Facilities Lenders in England. About Omega Navigation Athens, Greece-based Omega Navigation Enterprises Inc. and affiliates, owner and operator of tankers carrying refined petroleum products, filed for Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 11-35926) on July 8, 2011, in Houston. Omega is an international provider of marine transportation services focusing on seaborne transportation of refined petroleum products. The Debtors disclosed assets of US$527.6 million and debt totaling US$359.5 million. Together, the Debtors wholly own a fleet of eight high-specification product tankers, with each vessel owned by a separate debtor entity. Bracewell & Giuliani LLP serves as counsel to the Debtors. Jefferies & Company, Inc. is the financial advisor. OMEGA NAVIGATION: Retains Bracewell & Giuliani as Counsel --------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Texas has authorized Baytown Navigation, Inc. and its debtor-affiliates to employ Bracewell & Giuliani LLP as counsel effective as of the Petition Date. The firm's hourly rates are: partner at $710 to $1,050, associate at $315 to $600 and paralegal at $215 to $255. About Omega Navigation Athens, Greece-based Omega Navigation Enterprises Inc. and affiliates, owner and operator of tankers carrying refined petroleum products, filed for Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 11-35926) on July 8, 2011, in Houston. Omega is an international provider of marine transportation services focusing on seaborne transportation of refined petroleum products. The Debtors disclosed assets of US$527.6 million and debt totaling US$359.5 million. Together, the Debtors wholly own a fleet of eight high-specification product tankers, with each vessel owned by a separate debtor entity. Jefferies & Company, Inc., is the financial advisor. ORDWAY RESEARCH: Converts Case to Chapter 7 Liquidation ------------------------------------------------------- Larry Rulison at Times Union reports that the federal bankruptcy case of the Ordway Research Institute in Albany has been converted from a Chapter 11 case to a Chapter 7 liquidation. Times Union notes that although the case was filed as a Chapter 11 reorganization back in April, it became increasingly clear that Ordway would likely have to close its doors and sell its assets in order to pay its creditors. A trustee, Gregory Harris of Albany, was also appointed to the case, Times Union adds. About Ordway Research Albany, New York-based Ordway Research Institute, Inc., was formed in 2002 to facilitate inter-institutional and interdisciplinary collaborations in basic and translational biomedical research in New York's Capital District. Ordway's research is focused on drug development in cancer, emerging infections and signal transduction/endocrinology. Ordway filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 11-11322) on April 28, 2011. Bankruptcy Judge Robert E. Littlefield, Jr., presides over the case. Gregory J. Mascitti, Esq., at LeClairRyan, A Professional Corporation, represents the Debtor in its restructuring effort. As of April 26, 2011, Ordway had roughly $12,158,202 in assets and $17,108,847 in liabilities. In its schedules, the Debtor disclosed $6,615,279 in assets and $18,703,061 in liabilities. PARKERVISION INC: Posts $3.5 Million Net Loss in Q2 Ended June 30 ----------------------------------------------------------------- ParkerVision, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $3.5 million on $nil revenue for the three months ended June 30, 2011, compared with a net loss of $3.8 million on $nil revenue for the same period last year. The Company reported a net loss of $6.9 million on $0 revenue for the six months ended June 30, 2011, compared with a net loss of $7.7 million on $63,735 of revenue for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $16.0 million in total assets, $1.1 million in total liabilities, and stockholders' equity of $14.9 million. As reported in the TCR on April 11, 2011, PricewaterhouseCoopers LLP, in Jacksonville, Florida, expressed substantial doubt about ParkerVision's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered recurring losses from operations. A copy of the Form 10-Q is available at http://is.gd/bOiWqQ Jacksonville, Fla.-based ParkerVision, Inc. (Nasdaq: PRKR) -- http://www.parkervision.com/-- designs, develops and markets its proprietary radio frequency technologies which enable advanced wireless communications for current and next generation mobile communications networks. PAUL BRENNEKE: Files List of Four Largest Unsecured Creditors ------------------------------------------------------------- Paul Brenneke Qualified Personal Residence Trust UDT has filed with the U.S. Bankruptcy Court for the District of Oregon a list of its four largest unsecured creditors. Debtor's List of Four Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Union Bank/Frontier Bank $1,127,426.98 c/o Masashi Oka, President & CEO Collateral: 400 California Street $4,200,000.00 San Francisco, CA 94104 Trust Deed Unsecured: $910,731.98 D&J Remodeling c/o Dave Jones 20672 NW Quail Hollow Portland, OR 97229 $367,511.00 Interior Audio c/o Stewart Barnett 4101 NW 118th Circle Vancouver, WA 98685 $75,000.00 Venice Genoa Tile, C/O Victor LeNettoyeur $47,020.16 C/O Jimmy Drakos Trustee Collateral: 333 S. State Street, #286 $4,200,000.00 Lake Oswego, OR 97034 Lien Unsecured: $47,020.16 About Paul Brenneke Qualified Personal Residence Trust Z&A Irrevocable Trust UDT, Elene Dunavan, Jones Dave D&J Remodeling, and Victor Le Nettoyeur LLC filed for Involuntary Chapter 11 protection for Portland, Oregon-based Paul Brenneke Qualified Personal Residence Trust UDT (Bankr. D. Ore. Case No. 11-31975) on March 14, 2011. Judge Trish M. Brown presides over the case. The petitioners are represented by Robert S. Simon, Esq., at Robert S. Simon P.C. PIEDMONT CENTER: Bankr. Administrator Wants Chapter 11 Trustee -------------------------------------------------------------- Bankruptcy administrator Marjorie K. Lynch asks the U.S. Bankruptcy Court for the Eastern District of North Carolina for permission to appoint a Chapter 11 trustee for Piedmont Center Investments LLC. Ms. Lynch tells the Court that, on Aug. 3, 2011, a Federal Grand Jury in the Eastern District of North Carolina issued a Superseding Indictment against Roger Van Santvoord Camp. The indictment contains fifteen felony counts related to bank fraud, false statements and identity theft. Upon information and belief, Roger Van Santvoord Camp is in fact the same individual who authorized the filing of the Debtor's petition, Roger V. Camp. Ms. Lynch says Mr. Roger V. Camp aka Roger Van Santvoord Camp is in control of the debtor in possession. Mr. Camp, as manager, signed a Chapter 11 petition for Piedmont Center Investments, LLC (Bankr. E.D.N.C. Case No. 11-06178) on Aug. 11, 2011. Trawick H. Stubbs, Jr., Esq., at Stubbs & Perdue, P.A., in New Bern, North Carolina, serves as counsel to the Debtor. In its schedules, the Debtor disclosed $27.2 million in assets and $15.5 million in liabilities. PIERRE DEUX: Potential Buyers Has Until This Week to Submit Bids ---------------------------------------------------------------- Great American Group, Inc. has partnered with LiquiTec Industries, Inc. to assist with the liquidation of all the items contained within two Pierre Deux warehouse/distribution centers in Secaucus, New Jersey. Great American Group has managed a going-out-of-business sale for Pierre Deux retail stores since Aug. 11. A retail chain of French furnishing stores that operated across 13 states, Pierre Deux ceased business operations and filed for Chapter 7 bankruptcy protection on June 23 of this year. According to LiquiTec Vice President Katherine Walls, her company is now conducting a complete liquidation of all furniture, fixtures and equipment including material handling equipment, embroidery and fabric machines, office furniture and business machines at Pierre Deux's two warehouse and distribution centers. "We're only accepting bids through the end of this week, so we would urge potential buyers to contact us at (818) 710-3876, extension 5113, or visit our website at www.liquitec.net for further details on the liquidation," she said. Pierre Deux' former warehouse/distribution facilities are located at 180 Seaview Dr. and at 40 Enterprise Ave. North in Secaucus, New Jersey. Liquidation items can be inspected at the Seaview Drive location until 12:00 p.m. Wed, Aug. 31 and at the Enterprise Avenue location from 9:00 a.m. to 3:00 p.m. Tuesday, Aug. 30, through Friday, Sept. 2. People should contact Billy Parengkuan at 631-278-7686, or by e-mail at bparengkuan@liquitec.net, to schedule an appointment. Bids are being accepted until 4:00 p.m. CDT Friday, Sept. 2. For more details about the assets on sale or instructions on how to bid, visit www.liquitec.net. In addition, Great American Group is continuing its going-out-of- business sale at the former Pierre Deux retail sites in California, Colorado, Connecticut, Georgia, Illinois, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Texas, and Virginia. The stores contained an estimated $22 million in retail inventory when the sale began. Consumers still expect to find an array of items from home d�cor, furniture, rugs, tabletop items, lighting, handbags, wall paper and fabrics. Pierre Le Vec and Pierre Moulin opened the first Pierre Deux shop in Greenwich Village in 1967, promoting French art de vivre and the French country way to America. Pierre Deux imported antique furniture from the provinces and sold signature curtains, pillows and fabrics to accent the furniture. About Great American Group Great American Group, LLC (OTCBB: GAMR) -- http://www.greatamerican.com-- is a provider of asset disposition solutions and valuation and appraisal services to a wide range of retail, wholesale and industrial clients, as well as lenders, capital providers, private equity investors and professional service firms. Great American Group has offices in Atlanta, Boston, Chicago, Dallas, London, Los Angeles, New York and San Francisco. About LiquiTec Industries, Inc. LiquiTec Industries, Inc. -- http://www.liquitec.net-- is a global asset management and disposition firm that helps major corporations maximize return on and return of investment. The firm works with clients including the Fortune 1000, major manufactures, contractors, suppliers, asset-based lenders and professionals to sell non-strategic and surplus assets. LiquiTec acts as advisors, liquidators/auctioneers and brokers. The firm serves clients from 13 offices and strategic alliances worldwide. PLATINUM RIDGE: Places Three Hotels on Auction Block ---------------------------------------------------- Brian R. Ball at Columbus Business First reports that three of the five hotels at Port Columbus International Airport could be headed for the seller's block as affiliates of Platinum Ridge Properties LLC move to exit Chapter 11 bankruptcy reorganization. According to the report, a failure to find a buyer by Oct. 10, 2011, could, however, push a dispute between main creditor GE Capital Finance and the controlling owner of the Comfort Suites, Hilton Garden Inn and Hampton Inn into Franklin County Common Pleas Court, where the hotels could land in receivership. They ended up in U.S. Bankruptcy Court in March, when GE Capital said it would take Platinum Ridge and its affiliates -- CS Investors LLC, HI Investors LLC and Airport Garden Investors LLC - - to court over defaulting on loans, according to the report. The three limited liability companies owe a combined $32 million stemming from the 2005 purchase of the hotels. A July order from Bankruptcy Court Judge John Hoffman Jr. called for the sale of the properties at a price and terms, "acceptable to GE." It also called for the Platinum Ridge affiliates' Chapter 11 cases to be dismissed Oct. 11 if a buyer isn't found. The three hotels, along with a Baymont Inn & Suites and the Concourse Hotel, owned by other Platinum Ridge-led partnerships, stopped making ground-lease payments to the Columbus Regional Airport Authority in early 2009 as the recession took a toll on business travel. The authority runs the airport. The report notes Platinum Ridge handed over control of the Concourse Hotel to lender WesBanco Bank Inc. in September 2009. That property still is seeking a buyer. Business First relates that the Baymont Inn, meanwhile, awaits the scheduling of a sheriff's auction stemming from a December 2009 foreclosure filing by Delaware County Bank & Trust Co. Based in Dublin, Ohio, Airport Garden Investors LLC filed for Chapter 11 bankruptcy protection (Bankr. S.D. Ohio Case No. 11- 52556) on March 15, 2011. Judge Charles M. Caldwell presides over the case. Robert J. Morje, Esq., represents the Debtor. The Debtor estimated assets between $1 million and $10 million, and debts between $10 million and $50 million. POINT BLANK: Inks Stalking Horse Asset Purchase Deal with Gores --------------------------------------------------------------- Point Blank Solutions, Inc. has entered into a "stalking horse" Asset Purchase Agreement with an affiliate of The Gores Group, a well known and established private equity firm. The Company has submitted the APA to the Bankruptcy Court and intends to conduct a Court-supervised auction of its business under Section 363 of the U.S. Bankruptcy Code. Under the terms of the APA, The Gores Group would purchase substantially all of the Company's operating assets, subject to various conditions, the completion of the auction process and Bankruptcy Court approval. Based on the current timeline, the Company expects the purchase and sale transaction to be consummated by November 2011. Jim Henderson, CEO of Point Blank Solutions stated, "Despite our being in Chapter 11, we continue to make significant improvements in our ability to service our customers - starting with R&D, manufacturing and continuing throughout our customer service and sales organization. We've enhanced our supply chain relationships, formed new alliances, and brought to market the industry's most advanced and innovative ballistic solutions. Our delivery times are second to none and we are well positioned in the markets we service. With this Agreement in place with The Gores Group, we believe the business will emerge from this process shortly and be much stronger. Gores has a proven track record and a strong reputation for operational excellence; and we believe they will be a great asset enabling the business to grow into the future." Scott Avila, Chief Restructuring Officer of Point Blank, added, "We have been working hard to find the right buyer for the business and have explored a number of strategic options to maximize value for Point Blank's creditors and stockholders. This Asset Purchase Agreement with The Gores Group, which has the support of the respective committees, provides the best avenue for impacted stakeholders." Mr. Henderson continued, "Since we filed for Chapter 11, we have stayed true to our word that it is business as usual at Point Blank. I am proud of the sacrifices and commitments our employees have made and for the continued support of our business partners and our growing customer base, all of which have enabled us to maximize the value to be realized by the Company through this transaction." Pachulski Stang Ziehl & Jones LLP served as the Company's general bankruptcy counsel and CRG Partners Group, LLC served as its Chief Restructuring Officer and financial advisor. The Bankruptcy Case is In re Point Blank Solutions, Inc., Bankr. Del. Case No. 10-11255 (PJW). About Point Blank Headquartered in Pompano Beach, Florida, Point Blank Solutions, Inc. -- http://www.pointblanksolutionsinc.com/-- designs and produces body armor systems for the U.S. Military, Government and law enforcement agencies, as well as select international markets. The Company maintains facilities in Pompano Beach, Florida, and Jacksboro, Tennessee. The Company's former chief executive officer and chief operating officer were convicted in September 2010 of orchestrating a $185 million fraud. Point Blank Solutions, formerly DHB Industries, filed for Chapter 11 protection (Bankr. D. Del. Case No. 10-11255) on April 14, 2010. Laura Davis Jones, Esq., Alan J. Kornfeld, Esq., David M. Bertenthal, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as bankruptcy counsel to the Debtor. Olshan Grundman Frome Rosenweig & Wolosky LLP serves as corporate counsel. T. Scott Avila of CRG Partners Group LLC is the restructuring officer. Epiq Bankruptcy Solutions serves as claims and notice agent. The U.S. Trustee has appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Equity Security Holders in the case. Ian Connor Bifferato, Esq., and Thomas F. Driscoll III, Esq., at Bifferato LLC; and Carmen H. Lonstein, Esq., Andrew P.R. McDermott, Esq., and Lawrence P. Vonckx, Esq., at Baker & McKenzie LLP, serve as counsel for the Official Committee of Equity Security Holders. Robert M. Hirsh, Esq., and George P. Angelich, Esq., at Arent Fox LLP, serve as counsel to the Creditors Committee, and Frederick B. Rosner, Esq., and Brian L. Arban, Esq., at the Rosner Law Group LLC, serve as co-counsel. PORTER BANCORP: Posts $40 Million Net Loss in 2nd Quarter --------------------------------------------------------- Porter Bancorp, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $40.0 million for the three months ended June 30, 2011, compared with a net loss of $1.1 million for the same period last year. Net interest income was $13.4 million for the three months ended June 30, 2011, a decrease of $1.3 million, or 8.7%, compared with $14.7 million for the same period in 2010. The Company reported a net loss of $39.2 million for the six months ended June 30, 2011, compared with net income of $2.1 million for the same period of 2010. Net interest income was $27.2 million for the six months ended June 30, 2011, a decrease of $1.7 million, or 5.9%, compared with $28.9 for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $1.676 billion in total assets, $1.526 billion in total liabilities, and stockholders' equity of $150.4 million. On June 24, 2011, PBI Bank entered into a Consent Order with the FDIC and the Kentucky Department of Financial Institutions. The consent order requires the Bank, among other things, to maintain Tier 1 capital as a percentage of total assets of at least 9% and a total risk based capital ratio of at least 12%. On July 29, 2011, the Bank filed its call report, indicating that its Tier 1 leverage ratio had declined to 8.83% which is below the 9.0% minimum capital ratio required by the Consent Order. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a materially adverse effect on the Company's financial condition. A copy of the Form 10-Q is available at http://is.gd/gFimLi Porter Bancorp, Inc. (NASDAQ: PBIB) is a Louisville, Kentucky- based bank holding company which operates 18 full-service banking offices in twelve counties through its wholly-owned subsidiary, PBI Bank. Its markets include metropolitan Louisville in Jefferson County and the surrounding counties of Henry and Bullitt, and extend south along the Interstate 65 corridor to Tennessee. The Company serves south central Kentucky and southern Kentucky from banking offices in Butler, Green, Hart, Edmonson, Barren, Warren, Ohio and Daviess Counties. The Company also has an office in Lexington Kentucky, the second largest city in Kentucky. The Bank is both a traditional community bank with a wide range of commercial and personal banking products, including wealth management and trust services, and an innovative online bank which delivers competitive deposit products and services through an online banking division operating under the name of Ascencia. PUBLIC MEDIA: Two Directors Resign from Board --------------------------------------------- Each of Mr. Edward Frumkes and Mr. Joseph Merhi has resigned from the Board of Directors of Public Media Works, Inc., effective as of Aug. 23, 2011. Their resignations are not due to any disagreements with the Company known to any executive officer of the Company. About Public Media Works Sausalito, Calif.-based Public Media Works, Inc., and its wholly- owned subsidiary, EntertainmentXpress, Inc., a California corporation , are engaged in the business of offering self-service kiosks which deliver DVD movies to consumers. Public Media Works, Inc., has historically been engaged in the development, production, marketing and distribution of film, music and television entertainment titles. The Company has an ownership interest in several film and television projects, but expects no revenue from these projects. As of May 4, 2010 with the acquisition of Entertainment Xpress, Inc., the Company has focused exclusively on its kiosk business and intends to continue this focus going forward. In March 2011, the Company installed its first 25 kiosks under the DBA of "Spot. The difference(TM)". Anton & Chia, LLP, in Newport Beach, California, expressed substantial doubt about Pubic Media Works' ability to continue as a going concern. The independent auditors noted that the Company has incurred significant recurring net losses and negative cash flows from operations through Feb. 28, 2011, and it has an accumulated deficit of $12.83 million as of Feb. 28, 2011. The Company reported a net loss of $7.68 million on $7,139 of revenue for the fiscal year ended Feb. 28, 2011, compared with a net loss of $108,435 on $50,000 of revenue for the fiscal year ended Feb. 28, 2010. The Company's balance sheet at May 31, 2011, showed $862,106 in total assets, $1.17 million in total liabilities and a $307,366 in total stockholders' deficit. QR PROPERTIES: To Pay $7.5-Mil. to Webster Bank by Sept. 30 ----------------------------------------------------------- The Hon. Melvin S. Hoffman of the U.S. Bankruptcy Court for the District of Massachusetts approved the stipulation dated July 13, 2011, for adequate protection payments entered between QR Properties, LLC, and Webster Bank, National Association. The Debtor relates that on March 1, 2011, it entered into a purchase and sale agreement with Pulte Homes of New England, LLC for the sale of a real property consisting of all of the land located in Acton, Middlesex County, Massachusetts. The agreement provides, among other things, that, Pulte will pay $7,350,000 to the Debtor for the premises, well as additional amounts to be calculated. On June 16, Webster Bank filed a motion seeking relief from the automatic stay with respect to the premises. In response to the bank's motion, the Debtor notes that its Plan contemplates a closing of the sale of the premises to Pulte pursuant to the agreement. The Plan further provides for an Effective Date no later than Sept. 30, 2011, and for the payment of a sum certain to Webster Bank on or before Sept. 30, 2011. The stipulation, provides that the Debtor will pay Webster Bank a sum not less than $7,481,500 by Sept. 30, or the bank's motion for relief from automatic stay will be granted, effective Oct. 3. Webster Bank is represented by: Stephen A. Izzi, Esq. MOSES & AFONZO, LTD. 160 Westrninster Street, Suite 400 Providence, RI 02903 Tel: (401) 453-3600 E-mail: sizzi@moseafonzo.com About QR Properties, LLC Templeton, Massachusetts-based QR Properties, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Mass. Case No. 10- 45514) on Nov. 3, 2010. Joseph G. Butler, Esq., at Barron & Stadfeld, P.C., assists the Debtor in its restructuring effort. The Debtor estimated its assets and debts at $10 million to $50 million. QUINCY MEDICAL: Selling Hospital to Steward Specialty for $38MM --------------------------------------------------------------- Quincy Medical Center, Inc., et al., ask the U.S. Bankruptcy Court for the District of Massachusetts for authorization to provide notice to non-Company parties to the assigned agreements, in accordance with the APA of the Debtors' proposed assumption and assignment of the assigned agreements to Steward Specialty & Research Corp., incident to closing of the proposed sale. The Debtors relate that no competing bids were received by the Debtor under the sale procedures established by the Court's order entered July 19, 2011. The Debtor, in consultation with U.S. Bank, National Association, as indenture trustee for the Company's 2008 MHEFA bond issuance, and the Official Committee of Unsecured Creditors of the Company, has designated Steward as the winning bidder to purchase the hospital and other assets that are the subject of the sale motion. As reported in the Troubled Company Reporter on Aug. 11, 2011, the Debtors with the assistance of its financial advisor Navigant Capital Advisors, LLC, will sell assets utilized by the Company in operating its business. The assets are subject to various liens and security interests, including those asserted by U.S. Bank National Association, as trustee for holders of $60,250,000 of Massachusetts Health and Educational Facilities Authority Revenue Bonds, Quincy Medical Center Issue, Series A (2008); and Boston Medical Center Corporation. The assets will not be sold free and clear of certain purchase money security interests. The TCR reported on July 15, 2011, that the board of the Quincy approved a deal to sell the hospital to Steward. The TCR reported that if Quincy can resolve its present $56 million in debt through bankruptcy proceedings, Steward has agreed to pay $38 million for the hospital and make no less than $34 million worth of improvements to its facilities in five years. That $38 million will have to satisfy all the creditors -- from the big bondholders to small creditors who have been supplying the hospital with everything from X-ray frames to cleaning supplies. Among the assets to be sold under the APA is QMC ED Physicians, Inc.'s 10% ownership interest in BMC NAB Business Trust, a Massachusetts business trust. Boston Medical Center Corporation, a Massachusetts charitable corporation, owns the other 90% interest in the trust. In addition, bidders may submit offers to purchase only the QED shares. Also among the assets to be sold under the APA are the Company's rights under certain unexpired leases of real and personal property, and under certain executory contracts, to be identified by Steward pursuant to APA, or by any winning bidder. About Quincy Medical Center Quincy Medical Center is a 196-bed, nonprofit hospital in Quincy, Massachusetts. Quincy Medical Center, Inc. together with two affiliates, sought Chapter 11 protection (Bankr. D. Mass. Lead Case No. 11-16394) on July 1, 2011. John T. Morrier, Esq., at Casner & Edwards, LLP, in Boston, serves as counsel to the Debtors. Navigant Capital Advisor LLC and Navigant Consulting Inc. serve as financial advisors. Epiq Bankruptcy Solutions LLC is the claims, noticing, and balloting agent. Quincy disclosed assets of $73 million and liabilities of $79.4 million. Debt includes $56.4 million owing on secured bonds issued through a state health-care finance agency. There is another $2.5 million secured obligation owing to Boston Medical Center Corp. Accrued liabilities are $18.2 million. As reported in the Troubled Company Reporter on Aug. 9, 2011, Quincy disclosed $71,214,530 in assets and $81,319,414 in liabilities. On July 12, 2011, the U.S. Trustee for the District of Massachusetts appointed the Official Committee of Unsecured Creditors. QUINCY MEDICAL: P. Care Ombudsman Taps Madoff & Khoury as Counsel ----------------------------------------------------------------- Suzanne Koenig, the patient care ombudsman appointed in the Chapter 11 cases of Quincy Medical Center, Inc., et al., asks the U.S. Bankruptcy Court for the District of Massachusetts for permission to retain Madoff & Khoury LLP as her counsel. To the best of the ombudsman' knowledge, the firm is a "disinterested person" as that term is defined in section 101(14) of the Bankruptcy Code. About Quincy Medical Center Quincy Medical Center is a 196-bed, nonprofit hospital in Quincy, Massachusetts. Quincy Medical Center, Inc. together with two affiliates, sought Chapter 11 protection (Bankr. D. Mass. Lead Case No. 11-16394) on July 1, 2011. John T. Morrier, Esq., at Casner & Edwards, LLP, in Boston, serves as counsel to the Debtors. Navigant Capital Advisor LLC and Navigant Consulting Inc. serve as financial advisors. Epiq Bankruptcy Solutions LLC is the claims, noticing, and balloting agent. Quincy disclosed assets of $73 million and liabilities of $79.4 million. Debt includes $56.4 million owing on secured bonds issued through a state health-care finance agency. There is another $2.5 million secured obligation owing to Boston Medical Center Corp. Accrued liabilities are $18.2 million. As reported in the Troubled Company Reporter on Aug. 9, 2011, Quincy disclosed $71,214,530 in assets and $81,319,414 in liabilities. On July 12, 2011, the U.S. Trustee for the District of Massachusetts appointed the Official Committee of Unsecured Creditors. QUINCY MEDICAL: Navigant Capital Approved as Financial Advisor -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Massachusetts authorized Quincy Medical Center, Inc., et al., to employ Navigant Capital Advisors, LLC, and Navigant Consulting, Inc., as financial advisor. Pursuant to the Court's order, with respect to the firm's strategic alternative and restructuring support services, the Debtors are authorized to pay the firm its monthly fees during the pendency of the Chapter 11 cases, including the firm's application of retainer funds and the Debtors' replenishment of the retainer without further order of the Court, provided that the firm will submit monthly invoices in accordance with the interim compensation procedures, and provided further that the interim compensation procedures requiring delayed payment and a 10% holdback will not apply to the monthly fees. The Debtors are also authorized to pay the deferred fee as and when due and payable. About Quincy Medical Center Quincy Medical Center is a 196-bed, nonprofit hospital in Quincy, Massachusetts. Quincy Medical Center, Inc. together with two affiliates, sought Chapter 11 protection (Bankr. D. Mass. Lead Case No. 11-16394) on July 1, 2011. John T. Morrier, Esq., at Casner & Edwards, LLP, in Boston, serves as counsel to the Debtors. Navigant Capital Advisor LLC and Navigant Consulting Inc. serve as financial advisors. Epiq Bankruptcy Solutions LLC is the claims, noticing, and balloting agent. Quincy disclosed assets of $73 million and liabilities of $79.4 million. Debt includes $56.4 million owing on secured bonds issued through a state health-care finance agency. There is another $2.5 million secured obligation owing to Boston Medical Center Corp. Accrued liabilities are $18.2 million. QUINCY MEDICAL: Sept. 1 Disclosure Statement Hearing Called Off --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Massachusetts Quincy Medical Center, Inc., et al.'s request to excuse them from filing the disclosure statement with respect to the proposed Plan of Liquidation. The Official Committee of Unsecured Creditors and U.S. Bank, National Association, as indenture trustee for the Company's 2008 MHEFA bond issuance consented to the Debtors' request. The Debtors related that the indenture trustee and the Committee are in discussions concerning the terms of the Plan and specific Plan provisions, and the parties require additional time within which (i) to review and confirm certain financial information pertinent to plan negotiations; and (ii) to evaluate the information, conduct further plan negotiations based on such information, and document any consensual plan (and related disclosure statement) that may result from the negotiations. The Court also canceled the Sept. 1 hearing on the adequacy of the Disclosure Statement. The Company hopes that a consensual plan can be filed in the near term. The parties concurrently herewith will seek a one-week extension of the Court's interim cash collateral order to promote negotiation toward a consensual plan. About Quincy Medical Center Quincy Medical Center is a 196-bed, nonprofit hospital in Quincy, Massachusetts. Quincy Medical Center, Inc. together with two affiliates, sought Chapter 11 protection (Bankr. D. Mass. Lead Case No. 11-16394) on July 1, 2011. John T. Morrier, Esq., at Casner & Edwards, LLP, in Boston, serves as counsel to the Debtors. Navigant Capital Advisor LLC and Navigant Consulting Inc. serve as financial advisors. Epiq Bankruptcy Solutions LLC is the claims, noticing, and balloting agent. Quincy disclosed assets of $73 million and liabilities of $79.4 million. Debt includes $56.4 million owing on secured bonds issued through a state health-care finance agency. There is another $2.5 million secured obligation owing to Boston Medical Center Corp. Accrued liabilities are $18.2 million. As reported in the Troubled Company Reporter on Aug. 9, 2011, Quincy disclosed $71,214,530 in assets and $81,319,414 in liabilities. On July 12, 2011, the U.S. Trustee for the District of Massachusetts appointed the Official Committee of Unsecured Creditors. QUINCY MEDICAL: Suzanne Koenig Appointed as Patient Care Ombudsman ------------------------------------------------------------------ William K. Harrington, U.S. Trustee for Region 1 appointed Suzanne A. Koenig SAK MANAGEMENT SERVICES, LLC One Northfield Plaza, Suite 480 Northfield, IL 60093 Tel: (847) 446-8400 Fax: (847) 446-8432 E-mail: skoenig@sakmgmt.com as patient care ombudsman in the Chapter 11 case of Quincy Medical Center, Inc., et al. Previously, the U.S. Bankruptcy Court for the District of Massachusetts directed the U.S. Trustee to appoint a patient care ombudsman. To the best of the U.S. Trustee's knowledge, Ms. Koenig is a "disinterest person" as that term is defined in section 101(14) of the Bankruptcy Code. The U.S. Trustee is represented by: Stephen E. Meunier, Esq. United States Department of Justice Office of the U.S. Trustee 446 Main Street, 14th Floor Worcester, MA 01608 Tel: (508) 793-0555 Fax: (508) 793-0558 E-mail: stephen.meunier@usdoj.gov About Quincy Medical Center Quincy Medical Center is a 196-bed, nonprofit hospital in Quincy, Massachusetts. Quincy Medical Center, Inc. together with two affiliates, sought Chapter 11 protection (Bankr. D. Mass. Lead Case No. 11-16394) on July 1, 2011. John T. Morrier, Esq., at Casner & Edwards, LLP, in Boston, serves as counsel to the Debtors. Navigant Capital Advisor LLC and Navigant Consulting Inc. serve as financial advisors. Epiq Bankruptcy Solutions LLC is the claims, noticing, and balloting agent. Quincy disclosed assets of $73 million and liabilities of $79.4 million. Debt includes $56.4 million owing on secured bonds issued through a state health-care finance agency. There is another $2.5 million secured obligation owing to Boston Medical Center Corp. Accrued liabilities are $18.2 million. As reported in the Troubled Company Reporter on Aug. 9, 2011, Quincy disclosed $71,214,530 in assets and $81,319,414 in liabilities. On July 12, 2011, the U.S. Trustee for the District of Massachusetts appointed the Official Committee of Unsecured Creditors. QUINCY MEDICAL: Wants to Amend APA to Reflect Steward's Best Bid ---------------------------------------------------------------- Quincy Medical Center, Inc., et al., ask the U.S. Bankruptcy Court for the District of Massachusetts to authorize the amendment to the asset purchase agreement to reflect Steward Medical Holdings Subsidiary Five, Inc.'s successful bid to acquire the QED Shares. The Debtors also ask they be allowed to file any amendment with the Court prior to the sale hearing. The Debtors note that two competing bids were received for the QED Shares: (a) the $75,000 offer submitted by BMC Health; and (b) the offer submitted by Steward, which in accordance with the sale procedures indicated its intent to acquire the QED Shares, designated Steward Specialty & Research Corp. as a qualified non- profit entity qualified to purchase the QED Shares, and allocated $88,000 of the cash purchase price to the QED Shares. At the Aug. 15, auction, Steward and SSRC offered to purchase the QED Shares for $203,000, including (A) the $88,000 allocation submitted as its competing bid pursuant to the sale procedures, and (B) an additional $115,000 of cash payable at the closing of the purchase and sale transaction. The Company in consultation with U.S. Bank, National Association, as indenture trustee for the Company's 2008 MHEFA bond issuance, and the Official Committee of Unsecured Creditors, has designated Steward and SSRC as the winning bidder to purchase the QED Shares. About Quincy Medical Center Quincy Medical Center is a 196-bed, nonprofit hospital in Quincy, Massachusetts. Quincy Medical Center, Inc. together with two affiliates, sought Chapter 11 protection (Bankr. D. Mass. Lead Case No. 11-16394) on July 1, 2011. John T. Morrier, Esq., at Casner & Edwards, LLP, in Boston, serves as counsel to the Debtors. Navigant Capital Advisor LLC and Navigant Consulting Inc. serve as financial advisors. Epiq Bankruptcy Solutions LLC is the claims, noticing, and balloting agent. Quincy disclosed assets of $73 million and liabilities of $79.4 million. Debt includes $56.4 million owing on secured bonds issued through a state health-care finance agency. There is another $2.5 million secured obligation owing to Boston Medical Center Corp. Accrued liabilities are $18.2 million. As reported in the Troubled Company Reporter on Aug. 9, 2011, Quincy disclosed $71,214,530 in assets and $81,319,414 in liabilities. On July 12, 2011, the U.S. Trustee for the District of Massachusetts appointed the Official Committee of Unsecured Creditors. RETRO TELEVISION: Files for Bankruptcy Protection, Seeks Sale ------------------------------------------------------------- Dow Jones' DBR Small Cap reports that the operators of a Connecticut affiliate station of Retro Television Network, whose nostalgic programming includes "I Spy" and "Starsky & Hutch" reruns, filed for bankruptcy protection with the goal of selling its assets. RICE PETROLEUM: Files for Chapter 7 Bankruptcy Protection --------------------------------------------------------- The Star Tribune reports that Rice Petroleum Inc., 8700 Blackoak Lane, Maple Grove, filed for Chapter 7 bankruptcy protection (11- 45515) listing assets of $829,268 and liabilities of $810,736. Chip Rice is the president of the Company. RIDGE PARK: Can Use CSMC Cash Collateral Until Sept. 30 ------------------------------------------------------- Ridge Park Office, LLC obtained consent from CSMC 2006-C5 Better World Limited Partnership to use cash collateral, through and including September 30, 2011. The U.S. Bankruptcy Court for the Central District of California approved the stipulation authorizing Ridge Park to use CSMC's cash collateral pursuant to a budget. A copy of the Budget through September 30, 2011 is available for free at: http://bankrupt.com/misc/RidgePark_CashCollBudget.pdf The Debtor is authorized to deviate from the figures in the Budget by up to 15% per month on a line item basis only. CSMC is granted a replacement lien on (i) all existing and hereafter acquired property and assets of the Debtor and the Debtor's estate of every kind and character that are not encumbered by the pre-petition lien in favor of CSMC senior in priority to all liens and security interests except for liens of record prior to the petition date; and (ii) all existing and hereafter acquired property and assets of the Debtor and the Debtor's estate of every kind and character that are encumbered by the prepetition lien in favor of CSMC, to the extent CSMC's prepetition lien is not automatically continuing and perfected pursuant to Section 552 of the Bankruptcy Code, senior in priority to all liens and security interests except for liens of record prior to the Petition Date. The Replacement Lien is automatically perfected by entry of this order and no further agreements or instruments need be created or filed in order to evidence or perfect the Replacement Lien. The Replacement Lien will secure CSMC to the extent of any diminution in the value of its interests in property of the Debtor and the Debtor's estate as a result of the use of cash collateral as authorized. The Debtor will deposit any and all cash collateral of CSMC in a segregated debtor-in-possession account and will not commingle any cash collateral of CSMC with any other funds of the Debtor. CSMC's lien on funds constituting cash collateral will continue notwithstanding the deposit of those funds in the debtor-in- possession account. About Ridge Park Office Temecula, California-based Ridge Park Office, LLC, filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-33683) on July 22, 2011, represented by Krikor J. Meshefejian, Esq., at Levene, Neale, Bender, Yoo & Brill LLP. In its petition, the Debtor estimated $10 million to $50 million in both assets and debts. The petition was signed by Paul Garrett, president of Redhawk Communities, Inc. Ridge Park affiliates that have separately filed Chapter 11 petitions are: RCI Regional Grove, LLC (Case No. 11-22055) filed on April 12, 2011; Diaz Road Properties, LLC (Case No. 11-28473) and RCI Rio Nedo, LLC (Case No. 11-28470) both filed on June 6, 2011; and Woods Canyon Associates L.P. (Case No. 11-32418) filed on July 11, 2011. The Ridge Park case was originally assigned to Judge Catherine E. Bauer but was later moved to Judge Scott C. Clarkson, who oversees the affiliates' cases. Prepetition lender CSMC 2006-C5 Better World Limited Partnership is represented by: H. Mark Mersel, Esq. BRYAN CAVE LLP 3161 Michelson Drive, Suite 1500 Irvine, California E-mail: mark.mersel@bryancave.com ROKAYOSA INC: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Rokayosa, Inc. aka Inc Rokayoza P.O. Box 2063 San Sebastian, PR 00685 Bankruptcy Case No.: 11-07136 Chapter 11 Petition Date: August 25, 2011 Court: United States Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Antonio I. Hernandez Rodrigues, Esq. HERNANDEZ LAW OFFICE P.O. Box 8509 San Juan, PR 00910-0509 Tel: (787) 250-0575 E-mail: ahernandezlaw@yahoo.com Scheduled Assets: $4,336,361 Scheduled Debts: $4,738,057 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/prb11-07136.pdf The petition was signed by Wilson Irizarry Santiago, president. RW LOUISVILLE: Hearing on Case Dismissal Continued Until Sept. 27 ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Kentucky has continued until Sept. 27, 2011, at 9:00 a.m. (Eastern Time), the hearing to consider the motion to dismiss the Chapter 11 case of RW Louisville Hotel Associates LLC. As reported in the Troubled Company Reporter on May 5, 2011, Wells Fargo Bank National Association, formerly Wells Fargo Bank Minnesota National Association, sought for the dismissal of the Debtor's case because the Debtor lacked proper corporate authority to commence the proceeding. Wells Fargo noted that prior to a transaction that took place in October 2008, the Debtor was required to obtain the unanimous consent of an independent director of one of its members before filing a bankruptcy petition. The bank told the Court that, in October 2008, the Debtor and its insiders engaged in a series of transfers that purported to remove this requirement. However, those transfers violated the organizational documents of the Debtor and its owners and are void ab initio under Delaware law. Consequently, the October 2008 transfers must be ignored in analyzing whether the Debtor had proper authority to file the case. Because it did not obtain the unanimous consent of an independent director of one of its members as required, this bankruptcy was unauthorized and must be dismissed. About RW Louisville Louisville, Kentucky-based RW Louisville Hotel Associates, LLC, aka Holiday Inn Hurstbourne, owns a hotel property located at 1325 South Hurstbourne Parkway, Louisville, Kentucky 40222. It is an independent franchisee of InterContinental Hotels Group and operates a 271-room full-service Holiday Inn on the Real Property and employs approximately 110 employees. RW Louisville filed for Chapter 11 protection (Bankr. W.D. Ky. Case No. 10-35356) on Oct. 8, 2010. Emily Pagorski, Esq., and Lea Pauley Goff, Esq., J. Kent Durning, Esq., James S. Goldberg, Esq., Lea Pauley Goff, Esq., and Matthew R. Lindblom, Esq., at Stoll Keenon Ogden PLLC, in Louisville, Ky., assist RW Louisville in its restructuring effort. RW Louisville estimated its assets and debts at $10 million to $50 million at the Petition Date. RW LOUISVILLE: Plan Confirmation Hearing Scheduled for Sept. 20 --------------------------------------------------------------- The Hon. Thomas H. Fulton of the U.S. Bankruptcy Court for the Western District of Kentucky will convene a hearing on Sept. 27, 2011, at 9:00 a.m. (Eastern Time), to consider the confirmation of RW Louisville Hotel Associates LLC's Fourth Amended Chapter 11 Plan of Reorganization. Objections, if any, are due Sept. 20. At the Aug. 23, confirmation hearing on the Debtor's Third Amended Plan, the Debtor was directed to file by Aug. 29, an further amended Plan, in response to the statements of the Debtor's counsel, Wells Fargo Bank, N.A., and the U.S. Trustee. In a separate order, the Court also granted the Debtor's motion to conduct renewed voting on the Debtor's forthcoming modifications to its plan. As reported in the Troubled Company Reporter on June 16, 2011, the Court approved, on May 3, the Disclosure Statement explaining the Debtor's Third Amended Plan. The Third Amended Plan provides for the Debtor to emerge from Chapter 11 as a reorganized debtor continuing to operate a full- service Holiday Inn hotel, made possible by a restructuring of the Debtor's secured and unsecured debt. Under the Plan, the Debtor will pay general unsecured claims 25% of their value, pro rata, with 36 equal monthly payments beginning six months after the effective date of the Plan. Priority general unsecured claims will be paid in full but without interest with six equal monthly payments beginning upon the Effective Date. The Debtor will pay the De Minimis claims 80% of their value, without interest, within 30 days of the effective date. A full-text copy of the Third Amended Disclosure Statement is available for free at http://ResearchArchives.com/t/s?75fd A full-text copy of the Third Amended Chapter 11 Plan is available for free at http://ResearchArchives.com/t/s?75fe About RW Louisville Louisville, Kentucky-based RW Louisville Hotel Associates, LLC, aka Holiday Inn Hurstbourne, owns a hotel property located at 1325 South Hurstbourne Parkway, Louisville, Kentucky 40222. It is an independent franchisee of InterContinental Hotels Group and operates a 271-room full-service Holiday Inn on the Real Property and employs approximately 110 employees. RW Louisville filed for Chapter 11 protection (Bankr. W.D. Ky. Case No. 10-35356) on Oct. 8, 2010. Emily Pagorski, Esq., and Lea Pauley Goff, Esq., J. Kent Durning, Esq., James S. Goldberg, Esq., Lea Pauley Goff, Esq., and Matthew R. Lindblom, Esq., at Stoll Keenon Ogden PLLC, in Louisville, Ky., assist RW Louisville in its restructuring effort. RW Louisville estimated its assets and debts at $10 million to $50 million at the Petition Date. RWJ CRESTWOOD: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: RWJ Crestwood, LLC 13459 S. Cicero Avenue Crestwood, IL 60445 Bankruptcy Case No.: 11-34834 Affiliates that simultaneously sought Chapter 11 protection: Debtor Case No. ------ -------- RWJ Management Co., Inc. 11-34845 RWJ Management Co. II, Inc. 11-34915 RWJ Plainfield, LLC 11-34936 RWJ Downers Grove, LLC 11-34939 RWJ Romeoville, LLC 11-34943 RWJ Forestview, LLC 11-34948 RWJ Yorkville LLC 11-34951 RWJ Wauconda, LLC 11-34959 RWJ Glen Ellyn, LLC 11-34961 RWJ Munster, LLC 11-34968 RWJ Elmhurst, LLC 11-34971 Chapter 11 Petition Date: August 26, 2011 Court: U.S. Bankruptcy Court Northern District of Illinois (Chicago) Judge: Eugene R. Wedoff Debtor's Counsel: Mark A. Carter, Esq. ADELMAN & GETTLEMAN, LTD. 53 W. Jackson Boulevard Chicago, IL 60604 Tel: (312) 435-1050 Fax: (312) 435-1050 E-mail: mac@ag-ltd.com - and - Nathan Q. Rugg, Esq. ADELMAN & GETTLEMAN, LTD. 53 W. Jackson Boulevard, #1050 Chicago, IL 60604 Tel: (312) 435-1050 E-mail: nqr@ag-ltd.com Lead Debtor's Estimated Assets: $1,000,001 to $10,000,000 Lead Debtor's Estimated Debts: $10,000,001 to $50,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Robert Juckniess, manager. RYLAND GROUP: To Wind Down Jacksonville and Dallas Operations ------------------------------------------------------------- The Ryland Group, Inc., announced that it is winding down its homebuilding operations in its Jacksonville and Dallas divisions. The national homebuilder intends to complete all the homes currently under contract with customers and market its remaining available land in these divisions as part of a strategic plan to efficiently manage its invested capital. The company will service all outstanding warranties on the homes it constructs in Dallas and Jacksonville, and customers can still call and e-mail their Ryland customer service contacts. They can also request service by visiting the "Warranty" page on the company's Web site, www.ryland.com. About Ryland Group Headquartered in Calabasas, California, The Ryland Group, Inc. (NYSE: RYL) -- http://www.ryland.com/-- is one of the nation's largest homebuilders and a leading mortgage-finance company. Since its founding in 1967, Ryland has built more than 285,000 homes and financed more than 240,000 mortgages. The Company currently operates in 15 states and 19 homebuilding divisions across the country and is listed on the New York Stock Exchange under the symbol "RYL." The Company's balance sheet at June 30, 2011, showed $1.57 billion in total assets, $1.05 billion in total liabilities and $513.79 million in total equity. * * * As reported by the Troubled Company Reporter on June 21, 2010, Fitch Ratings has affirmed Ryland Group, Inc.'s ratings -- Issuer Default Rating at 'BB'; and Senior unsecured debt at 'BB'. The Rating Outlook has been revised to Stable from Negative. Ryland Group carries Moody's "Ba3" corporate family rating, "Ba3" probability of default rating, "Ba3" senior unsecured notes rating, and "SGL-2" speculative grade liquidity rating. Ryland Group carries Standard & Poor's Ratings Services' 'BB-' corporate credit and senior unsecured note ratings. SEARCHMEDIA HOLDINGS: Appoints J. Lo. as Chief Operating Officer ---------------------------------------------------------------- SearchMedia Holdings Limited has appointed Mr. Johnny Lo as the Company's Chief Operating Officer and CEO of China Operations, effective Sept. 1, 2011. Mr. Lo brings to SearchMedia over two decades of outdoor advertising experience in China and Hong Kong. He joins SearchMedia from Sky Media, an integrated outdoor advertising company he founded in 2004, whose client base includes well-recognized brands such as McDonald's, the NBA, and Johnnie Walker. Prior to founding Sky Media, Mr. Lo was the Founding Managing Director of Portland China, a full service outdoor advertising company in China owned by WPP/MindShare; General Manager of Greater China for Leo Burnett Ltd; and held various roles at the Hong Kong Mass Transit Railway Corporation. At Leo Burnett, Mr. Lo served high profile multinational corporate clients including Procter &Gamble, McDonald's, Smartone, Standard Charter Bank, Coca Cola and Motorola and was instrumental in launching Leo Burnett's new media company Starcom in Hong Kong and China. At MTRC, Mr. Lo was responsible for annual revenue of over HK$500 million across various business areas including poster advertising, Kiosk rental and all other revenue-generating concessions. Mr. Lo has also received various awards in recognition for his accomplishments in the advertising industry, including "The Most Important Leader Contributing to the Growth of China's Outdoor Market" at the Fifth China Outdoor Advertising Conference in 2008 and "Outdoor Person of the Year" at the Inaugural China Outdoor Conference in 2005. Mr. Lo received an MBA from the University of Hong Kong and a Bachelor of Science degree in Mathematics from the Chinese University of Hong Kong. Mr. Paul Conway, CEO of SearchMedia commented, "We are delighted to welcome a veteran of China's outdoor advertising industry to our executive management team. We believe Mr. Lo's expertise in the outdoor advertising business in China as well as his experience in serving leading global and national brands will help us better penetrate China's compelling advertising market and grow our concession base. Furthermore, his managerial and business development experience will prove invaluable to SearchMedia as we continue to develop towards our growth objectives and execute new strategic initiatives." About SearchMedia SearchMedia is a leading nationwide multi-platform media company and one of the largest operators of integrated outdoor billboard and in-elevator advertising networks in China. SearchMedia operates a network of high-impact billboards and one of China's largest networks of in-elevator advertisement panels in 50 cities throughout China. Additionally, SearchMedia operates a network of large-format light boxes in concourses of eleven major subway lines in Shanghai. SearchMedia's core outdoor billboard and in- elevator platforms are complemented by its subway advertising platform, which together enable it to provide a multi-platform, "one-stop shop" services for its local, national and international advertising clients. The Company's balance sheet at March 31, 2010, showed $93.30 million in total assets, $51.32 million in total liabilities, and stockholders' equity of $41.98 million. The Company reported a net loss of $46.6 million on $49.0 million of revenues for 2010, compared with a net loss of $22.6 million on $37.7 million of revenues for 2009. SECUREALERT INC: Inks $8MM Loan & Security Pact with Sapinda UK --------------------------------------------------------------- SecureAlert, Inc., and its wholly-owned subsidiaries, SecureAlert Monitoring, Inc., and Midwest Monitoring Surveillance, Inc., entered into a loan and security agreement with certain lenders and Sapinda UK Limited, as lender, administrative agent and collateral agent. The Credit Agreement provides for an asset-based revolving credit facility with an aggregate lender commitment of up to $8 million at any time outstanding, subject to borrowing base availability. Borrowings under the Credit Agreement bear interest at a rate equal to 15% per annum. The credit facility will mature on Aug. 31, 2014. In connection with the credit facility the Company also entered into an advisory services agreement with Sapinda UK Limited to assist the Company in raising up to $17 million, including the amounts borrowed under the credit facility. The first draw against the line of credit is to be $4 million, to be made available to the Company on or before Sept. 3, 2011. Borrowings under the Loan and Security Agreement are secured by the assets of the Company. A full-text copy of the Loan and Security Agreement is available for free at http://is.gd/SHxSed About SecureAlert Inc. Sandy, Utah-based SecureAlert, Inc. (OTC BB: SCRA) -- http://www.securealert.com/-- is an international provider of electronic monitoring systems, case management and services widely utilized by more than 650 law enforcement agencies worldwide. The Company's balance sheet at June 30, 2011, showed $15.18 million in total assets, $10.48 million in total liabilities, and $4.70 million in total equity. The Company has incurred recurring net losses and negative cash flows from operating activities. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management's plans with respect to this uncertainty include expanding the market for its ReliAlert portfolio of products and services, raising additional capital from the issuance of preferred stock, entering into debt financing agreements. There can be no assurance that revenues will increase rapidly enough to offset operating losses and repay debts. If the Company is unable to increase cash flows from operating activities or obtain additional financing, it will be unable to continue the development of its products and may have to cease operations SHASTA LAKE: Amends Schedules of Assets of Assets and Liabilities ----------------------------------------------------------------- Shasta Lake Resorts, LP filed with the U.S. Bankruptcy Court for the Eastern District of California amended schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $502,814 B. Personal Property $11,455,690 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $4,498,233 E. Creditors Holding Unsecured Priority Claims $114,482 F. Creditors Holding Unsecured Non-priority Claims $2,196,804 ----------- ----------- TOTAL $11,958,504 $6,809,519 A full-text copy of the Amended Schedules is available for free at http://bankrupt.com/misc/SHASTALAKE_amendedsal.pdf As reported in the Troubled Company Reporter on Aug. 1, 2011, in the original schedules, the Debtor disclosed $11,208,626 in personal property, and $2,183,568 in unsecured non-priority claims. About Shasta Lake Lodi, California-based Shasta Lake Resorts LP, also known as houseboats.com, is a leading supplier of luxury houseboat rentals in Northern California, operating a fleet of approximately 65 houseboats primarily out of its Jones Valley Resort on Shasta Lake and its New Melones Lake Marina. SLR offers a full service dock at both Jones Valley Resort and New Melones Lake Marina, with overnight and year round moorage and small boat and accessory rentals. SLR also operates floating stores, which sell everything its customers may want to complete their houseboating experience, including grocery items, bait and tackle, water sports and marine items, unique gifts and apparel. SLR offers slip rentals at Sugarloaf Resort on Shasta Lake. SLR disclosed assets between $10,000,001 to $50,000,000, and debts between $1,000,001 to $10,000,000. SLR filed voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code (Bankr. E.D. Calif. Case No. 11-37221) on July 13, 2011. Judge Christopher M. Klein is assigned to the case. Jamie P. Dreher, Esq., at Downey Brand LLP, in Sacramento, California, represents SLR. The Company listed $11,711,440 in assets and $6,796,283 in debts. SHENGDATECH INC: Wants to Hire Alvarez & Marsal as CRO ------------------------------------------------------ Shengdatech Inc. asks the U.S. Bankruptcy Court for the District of Nevada for permission to employ Alvarez & Marsal North America LLC to provide a chief restructuring officer. The firm will, among other things: a) assist in the prosecution of the Debtor's Chapter 11 filing; b) assist with cash controls and development and management of a 13-week cash flow forecast; and c) assist with the management and oversight of ongoing accounting investigations. The firm's professionals will be paid at these rates: Managing Director $650-850 Director $450-650 Associate/Consultant $350-450 Analyst $250-350 The Debtor assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. 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: Files List of 23 Largest Unsecured Creditors ------------------------------------------------------------- Shengdatech, Inc., has filed with the U.S. Bankruptcy Court for the District of Nevada a list of its 23 largest unsecured creditors. Debtor's List of 23 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ The Bank of New York Mellon, as indenture trustee for 6.5% Notes due December 2015 Bond Debt $130,000,000.00 The Bank of New York, as indenture trustee for 6.0% Notes due June 2018 Bond Debt $36,345,340.00 KPMG LLP Fees for Professional Services Rendered $632,702.00 Cadwalader, Wickersham Fees for Professional & Taft LLP Services Rendered $516,363.09 Donhoe Advisory Fees for Professional Associates, LLC Services Rendered $4,900.00 Zazove Associates, LLC Bond Debt Unknown CQS (UK) LLP Bond Debt Unknown Radcliffe Capital Management Bond Debt Unknown Citadel Group Bond Debt Unknown CAN Partners Bond Debt Unknown Lazard Asset Management LLC Bond Debt Unknown Deutsche Bank Securities Bond Debt Unknown Advent Capital Management, LLC Bond Debt Unknown CNH Partners Bond Debt Unknown James Thomas Turner Shareholder derivative litigation Unknown Marlon Fund SICA V PLC Shareholder derivative litigation Unknown Erik S. Mathes Shareholder derivative litigation Unknown Robert Corwin Shareholder derivative litigation Unknown Donald D. Yaw Shareholder derivative litigation Unknown Tom McDermott Shareholder derivative litigation Unknown Mathew Schweiger Shareholder derivative litigation Unknown Michael Komsky Shareholder derivative litigation Unknown Robert Johnson Shareholder derivative litigation Unknown About Shengda Tech Reno, Nevada-based Shengdatech, Inc., filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 11-52649) on Aug. 19, 2011. Bob L. Olson, Esq., Miriam G. Bahcall, Esq., Nancy A. Peterman, Esq., and Paul Ferak, Esq., serve as the Debtor's bankruptcy counsel. In its petition, the Debtor estimated assets and debts of $100 million to $500 million. SOUTHWESTT GEORGIA: Files Plan, Unsecured Claims to Recover 3% -------------------------------------------------------------- Southwest Georgia Ethanol, LLC, filed with the U.S. Bankruptcy Court for the Middle District of Georgia, Albany Division, a Chapter 11 plan of reorganization and an accompanying disclosure statement on August 26, 2011. The Plan proposes a 3% recovery to holders of general unsecured claims, estimated at $2,100,000. Holders of prepetition senior secured lender claims, estimated at $107,644,144, will receive a 97.5% recovery of their claims. Each holder of an allowed prepetition senior secured lender claim will receive their pro rata share of new preferred units and new Class B units. Holders of other secured claims, estimated at $2,744,833, will recover 100% of their claims. There are several holders of Other Secured Claims for equipment used at the Debtor's facility. Mitchell County has filed a secured tax claim, and has submitted invoices to the Debtor for 2011 ad valorem property taxes owing. Administrative Expense Claims, DIP Financing Claims, Professional Fee Claims, and Priority Tax Claims will be paid in full in cash. The Reorganized Debtor will convert to a Delaware limited liability company, governed by a New LLC Agreement, which will authorize the issuance of New Membership Interests and prohibit the issuance of non-voting equity interests. The New Membership Interests issued by the Reorganized Debtor will include (i) New Class A Units (if Classes 2, 3 and 5 each vote as a Class to accept the Plan), (ii) New Class B Units, and (iii) New Preferred Units, which will rank senior to all other classes of membership interests of the Reorganized Debtor. Except for Liquidity Event Distributions, holders of the New Class A Units will be entitled to receive, in the aggregate, 75% of all distributions from the Reorganized Debtor after the time as holders of the New Preferred Units have received their full Preferred Redemption Value, which is equal to the aggregate initial capital contribution of all holders and which will be equal to $105,000,000. Except for Liquidity Event Distributions, holders of the New Class B Units will be entitled to receive, in the aggregate, 25% of all distributions from the Reorganized Debtor after the time as holders of the New Preferred Units have received their full Preferred Redemption Value; provided, however, if the Class A Units are not issued pursuant to the Plan, then the New Class B Units will be entitled to 100% of all distributions from Reorganized Debtor. The Reorganized Debtor will enter into an exit financing, which will consist of a senior secured loan facility, in an aggregate principal amount not to exceed $20 million. A full-text copy of the Disclosure Statement is available for free at http://ResearchArchives.com/t/s?76bf About Southwest Georgia Southwest Georgia Ethanol LLC, a unit of First United Ethanol Co., sought bankruptcy protection (Bankr. M.D. Ga. 11-10145) in Albany, Georgia, on Feb. 1, 2011. The Debtor owns and operates an ethanol production facility located on 267 acres in Mitchell County, Georgia, producing 100 million gallons of ethanol annually. Ethanol production operations commenced in October 2008. Revenue was $168.9 million for fiscal year ended Sept. 30, 2010. The Debtor said profitability and liquidity have been materially reduced by unfavorable fluctuations in commodity prices for ethanol and corn. John Michael Levengood, Esq., at McKenna Long & Aldridge LLP, in Atlanta, Georgia, serves as counsel to the Debtor. Morgan Keegan & Company, Inc., is the investment banker and financial advisor. The Debtor's balance sheet showed $164.7 million in assets and $134.1 million in debt as of Dec. 31, 2010. Since 2008, at least 11 ethanol-related companies have sought court protection, including VeraSun Energy Corp., once the second- largest U.S. ethanol maker; units of Pacific Ethanol Inc.; and White Energy Holding Co. SPANISH TRAIL: Hopes to Generate Cash to Pay Operating Expenses --------------------------------------------------------------- Vegas Inc. reports that Spanish Trail Country Club in Las Vegas said it anticipates generating enough cash to pay operating expenses while its bankruptcy case proceeds. According to the report, a hearing is set for Monday in U.S. Bankruptcy Court for Nevada on the club's routine "first day" motions seeking approval to continue paying its 53 employees, utility bills and other operating expenses. In a court declaration, Farhang Rohani, the club's general manager and chief operating officer, said the nonprofit company has some $124,000 cash on hand -- which is now subject to control of the court. The report says use of that money, as well as revenue received after the bankruptcy, is crucial to Spanish Trail achieving an "effective and orderly reorganization," of its business. The report notes the club hasn't yet disclosed how it intends to reorganize and Hermitage Management hasn't indicated if it will cooperate with a reorganization or if it will ask the bankruptcy court for permission to proceed with the foreclosure. In his declaration, Mr. Rohani explained why the club is in default on a $15 million loan the club took out in April 2007 to improve the golf course and clubhouse. Records show the loan was at 6.52 percent interest and required monthly payments of about $136,000. STONE SURFACES: Cash Collateral Use Extended Through Oct. 31 ------------------------------------------------------------ Bankruptcy Judge Thomas J. Catliota signed off on a stipulation among Wells Fargo Bank, N.A., successor by merger to Wachovia Bank, N.A.; SunTrust Bank, and Stone Surfaces MD, Inc., extending the Debtor's authority to use the lenders' cash collateral through Oct. 31, 2011. The Court originally approved a Final Agreement and Consent Order Authorizing Debtor to Use Cash Collateral and Granting Adequate Protection on Sept. 16, 2010. The current stipulation extends the agreement for a fifth time. As further adequate protection for Wachovia and SunTrust's interests as of the Petition Date in the Prepetition Collateral, the Debtor was to pay to each Wachovia and SunTrust $3,000 on Aug. 23, 2011, and $1,500 on Oct. 1, 2011. The Adequate Protection Payments will be applied to reduce the outstanding debt owed by the Debtor. A copy of the stipulation dated Aug. 23 is available at http://is.gd/36Yn88from Leagle.com. Stone Surfaces MD, Inc., filed for Chapter 11 bankruptcy (Bankr. D. Md. Case No. 10-10492) on Jan. 8, 2010, listing under $10 million in assets. Christopher L. Hamlin, Esq. -- chamlin@mhlawyers.com -- at McNamee, Hosea, Jernigan, Kim, Greenan & Lynch, P.A., in Greenbelt, Maryland, serves as the Debtor's counsel. Attorney for lender Wells Fargo Bank, N.A., successor by merger to Wachovia Bank, N.A., is: Dale K. Cathell, Esq. DLA PIPER LLP (US) Baltimore, MD Telephone: (410) 580-4122 Facsimile: (410) 580-3122 E-mail: Dale.cathell@dlapiper.com Attorney for lender SunTrust Bank is: Karen A. Doner, Esq. RUTH, DONER, JACKSON, PLC McLean, Virginia Telephone: (703) 485-3537 Facsimile: (703) 485-3525 E-mail: kdoner@rothdonerjackson.com SUNNYVALE BUSINESS: Sec. 341 Creditors' Meeting Set for Sept. 13 ---------------------------------------------------------------- The U.S. Trustee for the District of Arizona will convene a Meeting of Creditors pursuant to 11 U.S.C. Sec. 341(a) in the bankruptcy case of Sunnyvale Business Square LLC on Sept. 13, 2011, at 12:00 p.m. at US Trustee Meeting Room, 230 N. First Avenue, Suite 102, in Phoenix. The debtor's representative must be present at the meeting to be questioned under oath by the trustee and by creditors. Creditors are welcome to attend, but are not required to do so. The meeting may be continued and concluded at a later date without further notice. The court, after notice and a hearing, may order that the United States trustee not convene the meeting if the debtor has filed a plan for which the debtor solicited acceptances before filing the case. About Sunnyvale Business Square Las Vegas, Nevada-based Sunnyvale Business Square LLC, doing business as Lakeview Village at Val Vista Lakes, filed for Chapter 11 bankruptcy (Bankr. D. Ariz. Case No. 11-23121) on Aug. 11, 2011. Chief Judge James M. Marlar presides over the case. Altfeld & Battaile P.C. serves as the Debtor's counsel. First Dartmouth Advisors serves as restructuring advisor. The Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Richard J. Orosel, manager of Orosel Enterprises LLC, manager. SUNNYVALE BUSINESS: Taps Altfeld & Battaile as Counsel ------------------------------------------------------ Sunnyvale Business Square LLC asks the Bankruptcy Court to approve its employment of John F. Battaile, Esq., and Altfeld & Battaile P.C., as counsel. Altfeld & Battaile P.C. may be reached at: John F. Battaile, Esq. ALTFELD & BATTAILE P.C. 250 N. Meyer Avenue Tucson, Arizona 85701 Tel: (520) 622-7733 Fax: (520) 622-7967 E-mail: JFBattaile@abazlaw.com About Sunnyvale Business Square Las Vegas, Nevada-based Sunnyvale Business Square LLC, doing business as Lakeview Village at Val Vista Lakes, filed for Chapter 11 bankruptcy (Bankr. D. Ariz. Case No. 11-23121) on Aug. 11, 2011. Chief Judge James M. Marlar presides over the case. First Dartmouth Advisors serves as restructuring advisor. The Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Richard J. Orosel, manager of Orosel Enterprises LLC, manager. SUNNYVALE BUSINESS: Hires First Dartmouth as Restructuring Advisor ------------------------------------------------------------------ Sunnyvale Business Square, LLC, seeks Court permission to employ First Dartmouth Advisors LLC as the Debtor's Restructuring Advisor. Sunnyvale said it is essential for the Debtor to engage the services of a restructuring advisor with experience and expertise in commercial mortgage-backed securities financing to advise and assist the Debtor in negotiating with the project lender and developing a strategy for the workout of the project loan, which might include a purchase of the loan, a payoff, or the purchase of the Debtor's real property as real estate owned. Any or all of those options may be utilized by the Debtor in developing, negotiating, and presenting the Debtor's reorganization plan to the Court pursuant to the Bankruptcy Code, or otherwise resolving this proceeding. First Dartmouth began providing services to the Debtor pre- bankruptcy. The Debtor paid First Dartmouth the sum of $10,000 as a retainer. The Debtor anticipates that First Dartmouth's services may require additional work and funding and, accordingly, has deposited an additional $10,000 in the trust account of its counsel, Altfeld & Battaile, P.C. First Dartmouth attests that it does not hold or represent any material adverse interest to the Debtor, the U.S. Trustee or the estate with respect to the professional services which are to be rendered to and on behalf of the Debtor, and is therefore disinterested within the meaning of 11 U.S.C. Sec. 101(14). About Sunnyvale Business Square Las Vegas, Nevada-based Sunnyvale Business Square LLC, doing business as Lakeview Village at Val Vista Lakes, filed for Chapter 11 bankruptcy (Bankr. D. Ariz. Case No. 11-23121) on Aug. 11, 2011. Chief Judge James M. Marlar presides over the case. Altfeld & Battaile P.C. serves as the Debtor's counsel. First Dartmouth Advisors, the restructuring advisor, may be reached at: FIRST DARTMOUTH ADVISORS LLC P.O. Box 5087 Greenwich, CT 06831 Tel: (914) 576-4019 E-mail: info@first-dartmouth.com The Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Richard J. Orosel, manager of Orosel Enterprises LLC, manager. SUPERIOR PROPERTY: Case Summary & 12 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Superior Property of 10621 Sepulveda, LLC 10621 Sepulveda Boulevard Mission Hills, CA 91345 Bankruptcy Case No.: 11-20305 Chapter 11 Petition Date: August 29, 2011 Court: U.S. Bankruptcy Court Central District of California (San Fernando Valley) Judge: Alan M. Ahart Debtor's Counsel: Michael S. Kogan, Esq. ERVIN COHEN & JESSUP LLP 9401 Wilshire Boulevard, 9th Floor Beverly Hills, CA 90212-2974 Fax: (310) 859-2325 E-mail: mkogan@ecjlaw.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Michael A. Kahn, managing member. Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Crown Real Estate Services -- -- Debtor's List of 12 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ City of Los Angeles Tax $326,749 Transient Occupancy Tax P.O. Box 53233 Los Angeles, CA 90053 Idearc Media Trade $14,726 P.O. Box 619810 DFW Airport, TX 75261 Allnet Security Trade $11,686 9836 White Oak Avenue 209 Northridge, CA 91325 HD Supply Trade $8,657 Los Angeles County Tax Sales Tax $7,198 Catalyst Communications Trade $5,000 Staples Trade $1,619 Six Flags California Trade $957 American Hotel Register Trade $941 KA Service Plus Trade $600 Hodges and Irvine Trade $200 Secion Trade $132 TETON AIR: Files List of 20 Largest Unsecured Creditors ------------------------------------------------------- Teton Air Ranch LLC has filed with the U.S. Bankruptcy Court for the District of Idaho a list of its 20 largest unsecured creditors. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Cypress Capital XII LLC 1220 Market Building Suite 704 $15,195,420.36 Wilmington DE 19801 Bank Loan $5,000,000.00 Jamarcus Russell 13111 Skyline Blvd Oakland CA 94619 Private Loan $1,800,000.00 Razorback LLC 688 S Bellin Road Construction Idaho Falls ID 83402 Contract $1,247,000.00 Golden Empire Construction Manufacturing Inc Contract $1,146,425.25 Teton West of Idaho LLC Construction Contract $1,013,757.47 Calvin Pace Private Loan $1,000,000.00 SilverTree Builders Inc Construction Contract $864,420.22 Lott Contractors Inc Construction Contract $730,610.32 Zollinger Construction Inc Construction Contract $442,306.13 Project Management Group Construction Contract $437,959.37 Jarvis Moss Private Loan $250,000.00 Gaber Agency Inc Private Loan $150,000.00 Burns Concrete Inc Construction Contract $149,916.69 Teton County Assessor Tax Liability $120,236.00 Williams Engineering Inc Construction Contract $75,766.74 SID Crookston Construction Construction LLC Contract $48,310.00 Rexburg Plumbing Construction and Heating Contract $34,740.52 Strata Inc Construction Contract $20,524.50 Sprinter Heating and Construction Hydronics LLC Contract $20,489.00 United Pipe and Construction Supply Co Inc Contract $8,942.16 About Teton Air 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. According to its schedules, the Debtor disclosed $13,799,537 in total assets and $24,719,592 in total debts. THAMES PRINTING: Plans to Respond Involuntary Petition by Sept. 21 ------------------------------------------------------------------ James Mosher at the Bulletin reports that Thames Printing Co. is weighing bankruptcy options in the wake of three creditors filing a liquidation petition to recover about $619,000 in debts. According to the report, Norwich-based lawyer Mark Block, who represents Thames owner Neil Blinderman, said he plans to answer the petition by the legal deadline of Sept. 21. Three companies that supplied paper to Thames filed a petition Monday in U.S. Bankruptcy Court in Hartford. Besides the sale of assets, the companies want a court-appointed trustee to investigate Thames. The report notes Lindenmeyr Munroe, of Moonachie, N.J., is owed the most, with $551,652 outstanding, according to court records. Cheshire-based Ariva Distribution Inc. is owed $1,674, the petition states. The three want a liquidation under Chapter 7 of the U.S. Bankruptcy Code. The report says the company had about 60 employees who are no longer working at the plant. That fact has not been reported to the state Department of Labor. TONYA LIGGION: Court Tosses Suit v. Branch Banking and Trust ------------------------------------------------------------ In an Aug. 24, 2011 Opinion and Order, District Judge William S. Duffey, Jr., dismissed a fourth amended complaint filed against Branch Banking and Trust Company by Tonya G. Liggion, thereby allowing the bank to foreclose on Ms. Liggion's property. Ms. Liggion obtained two residential mortgage loans from the Defendant totaling $1,229,000. The Loans were obtained to purchase her primary residence at 4558 Revenue Trail, Ellenwood, GA 30294. The case is TONYA G. LIGGION, v. BRANCH BANKING AND TRUST, No. 1:11- cv-01133 (N.D. Ga.). A copy of the court's decision is available at http://is.gd/bLzIAafom Leagle.com. About Tonya G. Liggion Tonya Grissam Liggion in Ellenwood, Georgia, filed for Chapter 11 bankruptcy (Bankr. N.D. Ga. Case No. 10-82566) on Aug. 2, 2010, the day before a foreclosure sale on her property. Dorna Jenkins Taylor, Esq. -- dorna.taylor@taylorattorneys.com -- Taylor & Associates, LLC, serves as bankruptcy counsel. Ms. Liggion scheduled assets of $1,035,425 and debts of $1,424,087. An affiliate, Genesys Pediatrics LLC, filed for Chapter 11 (Bankr. N.D. Ga. Case No. 10-74645) on May 17, 2010. UNITED COMMUNICATIONS: Posts $451,000 Net Loss in 2nd Quarter ------------------------------------------------------------- United Communications Partners Inc. (formerly known as Bark Group Inc.) filed its quarterly report on Form 10-Q, reporting a net loss of $451,000 on $4.0 million of revenues for the three months ended June 30, 2011, compared with a net loss of $2.3 million on $939,000 of revenues for the same period last year. The Company reported a net loss of $845,000 on $7.8 million of revenues for the six months ended June 30, 2011, compared with a net loss of $2.6 million on $939,000 of revenues for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $11.1 million in total assets, $9.4 million in total liabilities, and stockholders' equity of $1.7 million. Marcum LLP, in New York, expressed substantial doubt about United Communications Partners' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that at Dec. 31, 2010, the Company has not achieved a sufficient level of revenues to support its business and has suffered recurring losses from operations. A copy of the e Form 10-Q is available at http://is.gd/cMuqyC Based in Stockholm, Sweden, United Communications Partners Inc. -- http://www.ucpworld.com/-- is a commercial communication services company based in Sweden that provides integrated media, advertising and marketing consulting services to its clients. The Company's clients are comprised primarily of European businesses that range in size from small local businesses to larger trans- national and multi-national corporations. UNITED GILSONITE: Can Hire Value Management as Valuation Advisor ---------------------------------------------------------------- United Gilsonite Laboratories sought and obtained authorization from the U.S. Bankruptcy Court to employ Value Management, Inc., as business valuation advisor effective as of July 1, 2011. Value Management will render valuation consulting services including: a) an opinion as to the current fair market value of the Debtor in its entirety; b) expert testimony on valuation matters, if requested; and c) such other related services as management or counsel to the Debtor may request. Value Management's current hourly rates for its professionals and staff are: Managing Director $425 Director $300 to $375 Financial Analyst $200 to $250 Research Analyst $110 Edward A. Wilusz, a managing director of Value Management, assured the Court that his firm is a "disinterested parties" within the meaning of Section 101(14) and 328(c) of the Bankruptcy Code and holds no interest adverse to the Committee or the Debtor's creditors on the matters for which they are to be employed. Mr. Wilusz, the primary professional in charge of the engagement, can be reached at: Edward A. Wilusz, CFA, ASA, MBA Value Management Inc. 2370 York Road, E2 Jamison, Pennsylvania 18929 Phone: (215) 343-0500 Fax: (215) 343-0501 E-mail: eaw@valuemanagementinc.com About United Gilsonite Scranton, Pennsylvania-based United Gilsonite Laboratories, a Pennsylvania Corporation, is a small family-owned corporation engaged in the manufacturing of wood and masonry finishing products and paint sundries. It filed for Chapter 11 bankruptcy protection on March 23, 2011 (Bankr. M.D. Pa. Case No. 11-02032). Mark B. Conlan, Esq., at Gibbons P.C., serves as the Debtor's bankruptcy counsel. Joseph M. Alu & Associates P.C. serves as accountants. K&L Gates LLP serves as special insurance counsel. Lenahan & Dempsey, P.C., Wilbraham, Lawler & Buba, and Steptoe & Johnson LLP serve as professionals in the ordinary course of the Debtor's business. Garden City Group is the claims and notice agent. The Company disclosed $21,084,962 in assets and $3,008,688 in liabilities as of the Chapter 11 filing. Roberta A. DeAngelis, United States Trustee for Region 2, appointed five creditors to serve on an Official Committee of Unsecured Creditors of United Gilsonite Laboratories. Montgomery, McCracken, Walker & Rhoads, LLP, represents the Committee. UNITED GILSONITE: Wiss & Company Hired as Financial Advisor ----------------------------------------------------------- Judge Robert N. Opel, II, has authorized United Gilsonite Laboratories to employ Wiss & Company, LLP, as financial advisor effective as of July 1, 2011. The Debtor contemplates that Wiss will render financial consulting services as needed throughout the course of this case, including: a) analysis and advice regarding financial, valuation, bankruptcy and related issues that may arise in connection with the development and negotiation of a plan of reorganization and otherwise during the course of the Chapter 11 Case, which will not duplicate those of the Debtor's accountant or any other professional; b) advice in connection with and in preparation for meetings with the Official Committee, Future Claimants Representative and other constituencies and their respective professionals; c) expert testimony on financial matters, if requested; and d) such other services as management or counsel to the Debtor may request. Wiss' professionals and paraprofessionals bill their time in increments of one-tenth of an hour and the range of current hourly rates is as follows: Partners $375 Managers & Directors $225 to $275 Seniors & Supervisors $175 to $225 Accountants & Paraprofessionals $40 to $160 Anthony R. Calascibetta, a partner of Wiss & Company, assured the Court that his firm is a "disinterested party" within the meaning of Section 101(14) and 328(c) of the Bankruptcy Code and holds no interest adverse to the Committee or the Debtor's creditors on the matters for which they are to be employed. Mr. Calascibetta, the primary professional in charge of the engagement, can be reached at: Anthony R. Calascibetta WISS & COMPANY, LLP 354 Eisenhower Parkway Livingston, New Jersey 07039 Tel: 973-994-9400 Fax: 973-992-6760 About United Gilsonite Scranton, Pennsylvania-based United Gilsonite Laboratories, a Pennsylvania Corporation, is a small family-owned corporation engaged in the manufacturing of wood and masonry finishing products and paint sundries. It filed for Chapter 11 bankruptcy protection on March 23, 2011 (Bankr. M.D. Pa. Case No. 11-02032). Mark B. Conlan, Esq., at Gibbons P.C., serves as the Debtor's bankruptcy counsel. Joseph M. Alu & Associates P.C. serves as accountants. K&L Gates LLP serves as special insurance counsel. Lenahan & Dempsey, P.C., Wilbraham, Lawler & Buba, and Steptoe & Johnson LLP serve as professionals in the ordinary course of the Debtor's business. Garden City Group is the claims and notice agent. The Company disclosed $21,084,962 in assets and $3,008,688 in liabilities as of the Chapter 11 filing. Roberta A. DeAngelis, United States Trustee for Region 2, appointed five creditors to serve on an Official Committee of Unsecured Creditors of United Gilsonite Laboratories. Montgomery, McCracken, Walker & Rhoads, LLP, represents the Committee. UNIVERSAL BIOENERGY: Incurs $594,000 Net Loss in March 31 Qtr. -------------------------------------------------------------- Universal Bioenergy, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $594,087 on $22.24 million of revenue for the three months ended March 31, 2011, compared with a net loss of $172,872 on $0 of revenue for the same period during the prior year. The Company reported a net loss of $2.00 million on $41.32 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $1.87 million on $0 of revenue during the prior year. The Company's balance sheet at March 31, 2011, showed $4.36 million in total assets, $4.62 million in total liabilities and a a $252,964 total stockholders' deficit. S.E.Clark & Company, P.C., in Tucson, Arizona, the Company's independent auditors, noted that the accumulation of losses and shortage of capital raise substantial doubt about the Company's ability to continue as a going concern. A full-text copy of the Form 10-Q is available for free at: http://is.gd/h2yiKG About Universal Bioenergy Universal Bioenergy Inc., is an alternative energy company headquartered in Irvine, California. The Company's new strategic direction is to develop and market a diverse product line of alternative and natural energy products including, natural gas, solar, biofuels, wind, wave, tidal, and green technology products. USG CORP: Subsidiary to Close Eight Add'l Distribution Branches --------------------------------------------------------------- As a further step in USG Corporation's ongoing adjustment of its operations to adapt to market conditions, the Company's subsidiary, L&W Supply Corporation, has determined that it will close eight additional distribution branches and its Nevada custom door and frames business before the end of the third quarter of this year. The Company will record charges of approximately $7-$8 million in the current and future fiscal quarters related to these closures. These charges include approximately $5-$6 million related to equipment and distribution branch lease terminations, approximately $1 million for termination benefits and approximately $1 million for associated costs, including inventory write-offs. The Company estimates that it will incur cash expenditures of approximately $6-$7 million in the current and future fiscal quarters in connection with the closures. About USG Corporation Based in Chicago, Ill., USG Corporation -- http://www.usg.com/-- through its subsidiaries, manufactures and distributes building materials producing a wide range of products for use in new residential, new nonresidential and repair and remodel construction, as well as products used in certain industrial processes. The company filed for Chapter 11 protection on June 25, 2001 (Bankr. Del. Case No. 01-02094). When the Debtors filed for protection from their creditors, they disclosed $3,252,000,000 in assets and $2,739,000,000 in debts. The Debtors emerged from bankruptcy protection on June 20, 2006. The Company's balance sheet at June 30, 2011, showed $3.94 billion in total assets, $3.42 billion in total liabilities and $527 million in total stockholders' equity. * * * As reported by the TCR on Aug. 15, 2011, Standard & Poor's Ratings Services lowered its corporate credit rating on USG Corp. to 'B' from 'B+'. "The downgrade reflects our expectation that USG's operating results and cash flow are likely to be strained over the next year due to the ongoing depressed level of housing starts and still- weak commercial construction activity," said Standard & Poor's credit analyst Thomas Nadramia. "It is now more likely, in our view, that any meaningful recovery in housing starts may be deferred until late 2012 or into 2013. As a result, the risk that USG's liquidity in the next 12 to 24 months will continue to erode (and be less than we incorporated into our prior ratings) has increased. The ratings previously incorporated a greater improvement in housing starts, which would have enabled USG to reduce its negative operating cash flow in 2012 and achieve breakeven cash flow or better by 2013." VENTANA HILLS: Montour to Get $1.4 Million in Back Property Taxes ----------------------------------------------------------------- Andrea Iglar at Pittsburgh Post-Gazette reports that the Montour School District is set to receive more than $1.4 million in back property taxes from a Robinson apartment complex. According to the report, Ventana Hills must pay in full delinquent real estate taxes and reimburse Montour for legal and tax collection fees under a bankruptcy agreement, school attorney Donald Palmer said. About Ventana Hills Ventana Hills Associates, Ltd., is the owner and operator of a residential apartment project located in Pittsburgh, Pennsylvania, known as "Ventana Hills Apartments. Ventana Hills Apartments was constructed in 2002 as a rental apartment community, in two phases, and was purchased by the Debtor in 2004 for $50,000. Ventana Hills Associates and affiliate Ventana Hills Phase II, L.P., filed for Chapter 11 bankruptcy (Bankr. N.D. Ill. Case No. 09-41755) on Nov. 3, 2009. The Debtors each estimated assets of and debts of $50 million to $100 million in their respective petitions. Richard H. Fimoff, Esq., at Robbins, Salomon & Patt Ltd., in Chicago, Illinois, represent the Debtor. VOICE ASSIST: Posts $3.0 Million Net Loss in 2nd Quarter -------------------------------------------------------- Voice Assist, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $3.0 million on $299,089 of revenues for the three months ended June 30, 2011, compared with a net loss of $47,274 on $298,644 of revenues for the same period last year. The Company reported a net loss of $5.9 million on $534,138 of revenues for the six months ended June 30, 2011, compared with a net loss of $132,838 on $673,851 of revenues for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $1.3 million in total assets, $476,845 in total liabilities, all current, and stockholders' equity of $781,261. Mantyla McReynolds LLC, in Salt Lake City, Utah, expressed substantial doubt about Voice Assist's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has working capital deficits and has incurred losses from operations and negative operating cash flows during the years ended Dec. 31, 2010, and 2009. A copy of the Form 10-Q is available at http://is.gd/6tPBiC Lake Forest, California-based Voice Assist, Inc. -- http://www.voiceassist.com/-- is a hosted speech services provider offering cloud based speech recognition technology designed to voice enable mobile applications. VU1 CORPORATION: Posts $1.8 Million Net Loss in 2nd Quarter ----------------------------------------------------------- Vu1 Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $1.84 million on $7,816 of revenue for the three months ended June 30, 2011, compared with net income of $657,968 on $nil revenue for the same period last year. The Company reported a net loss of $3.08 million on $7,816 of revenue for the six months ended June 30, 2011, compared with net income of $720,748 on $nil revenue for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $5.27 million in total assets, $4.34 million in total liabilities, and stockholders' equity of $932,177. As reported in the TCR on April 11, 2011, Peterson Sullivan, LLP, in Seattle, Wash., expressed substantial doubt about Vu1 Corporation's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company incurred a net loss of $4,626,250, and it had negative cash flows from operations of $3,529,351 in 2010. "In addition, the Company had an accumulated deficit of $70,499,569 at Dec. 31, 2010." A copy of the Form 10-Q is available at http://is.gd/qHpoaq New York City-based Vu1 Corporation (OTC BB: VUOC) -- http://www.Vu1.com/-- designs, develops and manufactures mercury-free light bulbs using the Company's proprietary Electron Stimulated Luminescence(TM), or ESL, lighting technology. WAGSTAFF MINNESOTA: Committee May Challenge Liens Until Sept. 17 ---------------------------------------------------------------- The Hon. Nancy C. Dreher of the U.S. Bankruptcy Court for the District of Minnesota approved the stipulation extending the deadline of the Official Committee of Unsecured Creditors in the Chapter 11 case of Wagstaff Minnesota Inc., to challenge liens and security interests of the Debtors' senior secured lenders. The Committee has until Sept. 17, 2011, to object to, challenge, or seek to avoid the amount, validity, or enforceability of the alleged liens and security interests held by certain secured creditors of the Debtors, including General Electric Capital Corporation, General Electric Capital Business Asset Funding Corporation of Connecticut, GE Capital Franchise Finance Corporation, and Colonial Pacific Leasing Corporation, well as Perella Weinberg Partners Asset Based Value Master Fund I L.P. and Perella Weinberg Partners ABV Master Fund II A L.P. The stipulation among the Committee, GE and PWP provides that, among other things: -- the Committee's Sept. 17 challenge extension is limited to the reserved challenges; and -- except as specifically amended by the stipulation, the cash collateral order remains in full force and effect. The Committee is represented by: LOMMEN, ABDO, COLE, KING & STAGEBERG, P.A. Deborah C. Swenson, Esq. 80 South Eighth Street Minneapolis, MN 55402 Tel: (612) 339-8131 Fax: (612) 339-8064 E-mail: debs@lommen.com FREEBORN & PETERS LLP Aaron L. Hammer, Esq. Richard S. Lauter, Esq. Thomas R. Fawkes, Esq. 311 South Wacker Drive, Suite 3000 Chicago, IL 60606 Tel: (312) 360-6000 Fax: (312) 360-6571 E-mails: rlauter@freebornpeters.com ahammer@freebornpeters.com tfawkes@freebornpeters.com GE is represented by: QUARLES & BRADY LLP Susan G. Boswell, Esq. One South Church Avenue, Suite 1700 Tucson, AR 85701 Tel: (520) 770-8713 Fax: (520) 770-2222 E-mail: susan.boswell@quarles.com Perella Weinberg is represented by: WINSTON & STRAWN LLP Brian I. Swett, Esq. Myja K. Kjaer, Esq. 35 West Wacker Drive Chicago, IL 60601 Tel: (312) 558-5600 Fax: (312) 558-5700 About Wagstaff Properties Hanford, California-based Wagstaff Properties LLC and its debtor- affiliates filed for Chapter 11 protection (Bankr. D. Minn. Case No. 11-43074) on April 30, 2011. The cases are jointly administered with Wagstaff Minnesota Inc. (Bankr. Case No. 11-43073). Bankruptcy Judge Nancy C. Dreher presides the case. Fredrikson & Byron, PA, and Peitzman Weg & Kempinsky LLP represent the Debtor in their restructuring efforts. The debtors estimated assets and liabilities at $10 million to $50 million. WAGSTAFF PROPERTIES: Terra Properties Ok'd as Affiliate's Broker ---------------------------------------------------------------- The Hon. Nancy C. Dreher of the U.S. Bankruptcy Court for the District of Minnesota authorized D & D Property Investments, LLC, debtor-affiliate of Wagstaff Minnesota Inc., to employ Terra Properties as its real estate broker. The Debtor D & D Property will pay Terra's fees amounting $10,000. Upon the close of the sale of the property, the Debtor will be authorized to immediately pay in full Terra's commission of 4% of the purchase price amounting to$10,000, and no further application for fees will be made by Terra. About Wagstaff Properties Hanford, California-based Wagstaff Properties LLC and its debtor- affiliates filed for Chapter 11 protection (Bankr. D. Minn. Case No. 11-43074) on April 30, 2011. The cases are jointly administered with Wagstaff Minnesota Inc. (Bankr. Case No. 11-43073). Bankruptcy Judge Nancy C. Dreher presides the case. Fredrikson & Byron, PA, and Peitzman Weg & Kempinsky LLP represent the Debtor in their restructuring efforts. The debtors estimated assets and liabilities at $10 million to $50 million. WHITEMUD RESOURCES: BIA Proposal Approved by Creditors ------------------------------------------------------ Whitemud Resources Inc. is pleased to announce that the second amended proposal sponsored by Kasten Energy Inc. pursuant to Part III, Division I of the Bankruptcy and Insolvency Act (Canada) was approved by the various classes of creditors of Whitemud on July 21, 2011and was ratified by the Court of Queen's Bench of Alberta, Judicial District of Calgary by a court order issued on August 12, 2011. (Further information on both the receivership of Whitemud and the Second Amended Proposal can be accessed on the website of Deloitte & Touche Inc. at www.deloitte.ca under the Insolvency and Restructuring link.) Pursuant to the Court Order, the following individuals were named as the interim directors of Whitemud to hold office until the next annual meeting of its shareholders: Al J. Kroontje, Stanley A. Owerko, Barry Lester, Randall J. Findlay and Vince Davoli. As interim directors, they now have control and operation of the property, assets and undertaking of Whitemud. The directors have now appointed the following officers: Stanley A. Owerko (Chief Executive Officer), David Storoshenko (President), Michele Ward (Chief Financial Officer) and Robert J. Iverach, Q.C. (Secretary). Kasten will carry out the terms of the Second Amended Proposal and Kasten (or its nominee(s)) will receive 16,000,000 Class "A" Common Shares and 326,499,700 Class "B" Non-voting Common Shares from treasury. After the issuance of these new shares, there will be 34,026,300 Class "A" Common Shares and 326,499,700 Class "B" Non-voting Common Shares issued and outstanding. The new board of directors and management of Whitemud will be taking steps to have the cease trade order that was issued against it by the Alberta Securities Commission on December 3, 2010 and any other cease trade orders issued against Whitemud revoked and will be analyzing Whitemud's operations and potential markets to determine how and when mining and processing operations can be recommenced at Whitemud's facilities in southern Saskatchewan. About Whitemud Resources Inc. Whitemud is a Canadian-based corporation holding mineral rights to exploit a large kaolin deposit in southern Saskatchewan, together with a state of the art, recently constructed processing facility located on the property. Whitemud's product, Whitemud(MK), is a cement-grade metakaolin that enhances the performance of cement for oil and gas wells and construction applications. The Company uses a patented process that minimizes environmental impact. On December 3, 2011, trading in the securities of Whitemud was suspended by the TSX Venture Exchange ("TSXV") and on Feb 28, 2011, Whitemud's listing was transferred to the NEX board of the TSXV where it remains suspended. WOMEN'S APPAREL: To Sell Assets in Mid-September Public Auction --------------------------------------------------------------- Gerry Tuoti at the Taunton Gazette reports that Warren Pepicelli, executive vice president of the union Unite Here that represents 80 workers at the Taunton facility, said a bankruptcy court set a date in mid-September for the company to be sold at a public auction, "At that point a buyer will come forward and put a bid in," the report quotes Mr. Pepicelli as stating. What happens after that, he said, is difficult to predict. According to the report, a freeze on the Company's assets was lifted in court late last week, allowing workers to cash their paychecks and report back to work Monday. Boston Apparel Group bought the brand three years ago from Redcats USA, a French company that acquired the line from Brylane and Chadwicks of Boston. On June 29, 2011, Women's Apparel Group LLC, doing business as Boston Apparel Group, filed for Chapter [7] bankruptcy protection; in July, the petition was converted to Chapter 11 reorganization. WOODS CANYON: Affiliates File Schedules of Assets and Liabilities ----------------------------------------------------------------- Debtor-affiliates of Woods Canyon Associates L.P. filed with the U.S. Bankruptcy Court for the District of California their respective schedules, disclosing: Name of Company Assets Liabilities --------------- ------ ----------- Diaz Road Properties, LLC $7,365,466 $18,011,076 RCI Redbird, LLC $8,378,360 $18,003,272 RCI Regional Grove, LLC $9,152,353 $5,983,864 RCI Rio Nedo, LLC $3,186,238 $17,983,289 As reported in the Troubled Company Reporter on Aug. 18, 2011, Woods Canyon filed its schedules of assets and liabilities, disclosing $216,319 in assets and $5,995,219 in liabilities. Woods Canyon Associates L.P., based in Temecula, California, filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-32418) on July 11, 2011. Ron Bender, Esq., and Krikor J. Meshefejian, Esq., at Levene, Neale, Bender, Yoo & Brill LLP, in Los Angeles, serve as the Debtor's bankruptcy counsel. In its petition, the Debtor estimated assets of $10 million to $50 million, and debts of $1 million to $10 million. The petition was signed by Paul Garrett, president/sole shareholder of Woods Canyon's general partner. Three affiliates Diaz Road Properties, LLC (Bankr. C.D. Calif. Case No. 11-28473); RCI Redbird, LLC (Bankr. C.D. Calif. Case No. 11-28479); and RCI Rio Nedo, LLC (Bankr. C.D. Calif. Case No. 11-28470) filed separate Chapter 11 petitions on June 6, 2011. Affiliate RCI Regional Grove, LLC (Bankr. C.D. Calif. Case No. 11-22055) filed on April 12, 2011. Judge Deborah J. Saltzman was originally assigned to Woods Canyon's case, but was later replaced by Judge Scott C. Clarkson, who handled the affiliates' cases. WORLD SURVEILLANCE: Incurs $2.5 Million Net Loss in 2nd Quarter --------------------------------------------------------------- World Surveillance Group Inc., formerly Sanswire Corp., filed its quarterly report on Form 10-Q, reporting a net loss of $2.5 million on $26,093 of sales for the three months ended June 30, 2011, compared with a net loss of $4.1 million on $250,000 of revenue for the same period last year. The Company reported a net loss of $111,632 on $26,093 of sales for the six months ended June 30, 2011, compared with a net loss of $4.8 million on $250,000 of sales for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $3.7 million in total assets, $17.9 million in total liabilities, and a stockholders' deficit of $14.2 million. Rosen Seymour Shapss Martin & Company LLP, in New York, expressed substantial doubt about Sanswire's ability to continue as a going concern, following the 2010 financial results. The independent auditor noted that the Company has experienced significant losses and negative cash flows, resulting in decreased capital and increased accumulated deficits. A copy of the Form 10-Q is available at http://is.gd/DNdp7J World Surveillance Group Inc. designs, develops, markets and sells autonomous lighter-than-air (LTA) unmanned aerial vehicles (UAVs) capable of carrying payloads that provide persistent security and/or wireless communication from air to ground solutions at low, mid and high altitudes. The Company's airships, when integrated with electronics systems and other high technology payloads, are designed for use by government-related and commercial entities that require real-time intelligence, surveillance and reconnaissance or communications support for military, homeland defense, border control, drug interdiction, natural disaster relief and maritime missions. The Company is headquartered at the Kennedy Space Center, in Florida. XYIENCE INC: Interlocutory Appeal Over $150MM Sanctions Bid Denied ------------------------------------------------------------------ On July 18, 2007, Xyience Incorporated filed its complaint against Richard Bergeron, III, in Nevada state court. Three months after its bankruptcy filing, on March 20, 2008, Xyience removed the state court litigation to the bankruptcy court. On Jan. 21, 2009, Mr. Bergeron filed an amended motion for F.R.C.P. Rule 22 and Rule 9011 sanctions requesting sanctions against the parties and attorneys in the state court litigation and other entities that had not made any appearances in that action, including Zyen LLC. The amended sanctions motion sought $150 million. On Feb. 10, 2009, Fertitta Enterprises filed its opposition to the amended sanctions motion. On Nov. 19, 2010 -- while the amended sanctions motion, Fertitta Enterprises' opposition, and other related motions remained pending before the bankruptcy court -- Mr. Bergeron filed a motion seeking leave to amend the amended sanctions motion. Fertitta Enterprises filed an opposition to the amended sanctions motion. On Feb. 10, 2011, the bankruptcy court denied the leave to amend motion. In response, Mr. Bergeron appealed, seeking to have the district court reverse the bankruptcy court's order denying the leave to amend motion. Zyen LLC and Fertitta Enterprises sought dismissal of the appeal. In his Aug. 24, 2011 Order, District Judge James C. Mahan held that there are no proper grounds to grant Mr. Bergeron leave to appeal the bankruptcy court's Feb. 10, 2011 interlocutory order. The leave to amend motion was straightforward, requesting the bankruptcy court use its discretion and allow Mr. Bergeron to amend a motion that had been pending before the court for several months, during which, Mr. Bergeron continuously attempted to improperly present additional and new evidence. The bankruptcy court exercised its discretion to deny the motion, and the district court does not find that such denial was an abuse of discretion, Judge Mahan said. The bankruptcy court's order did not, therefore, involve a controlling question of law where there was substantial ground for difference of opinion. Moreover, a reversal on the leave to amend motion will not advance the efficient resolution of the litigation, but merely enable Mr. Bergeron to amend a sanctions motion that is already pending before the bankruptcy court. The case is XYIENCE, INCORPORATED, a Nevada corporation, Plaintiff, v. RICHARD BERGERON, III, an individual, Defendant. RICHARD BERGERON, III, an individual, Counterclaimant, v. XYIENCE, INCORPORATED, a Nevada corporation; FERTITTA ENTERPRISES, INC., a Nevada corporation, Counterdefendants. RICHARD BERGERON, III, an individual, Appellant, v. ZYEN, LLC, a Nevada limited liability company, and FERTITTA ENTERPRISES, INC., a Nevada corporation, Appellees, No. 2:11-CV-00772 (D. Nev.). A copy of Judge Mahan's order is available at http://is.gd/H6Hfslfrom Leagle.com. About Xyience Incorporated Xyience Incorporated -- http://www.xyience.com/-- manufactures sports nutrition products and related commodities, like an apparel line. Xyience sells its energy drink through 230 convenience and grocery stores, mostly in the Southwest. Known for its Xenergy energy drink, Xyience is an Ultimate Fighting Championship sponsor and signed a $15 million sponsorship agreement with the UFC for 2007. Founder and former CEO Russell Pike, together with Prosperity Investments Alliance LLC and other creditors filed involuntary Chapter 11 petition against the Debtor (Bankr. D. Nev. Case No. 08-10049) on Jan. 3, 2008. Mr. Pike listed $2,157,516 and Prosperity listed $1,102,500 in unsecured claims. Marjorie A. Guymon, Esq., at Goldsmith & Guymon PC represents Mr. Pike and the other creditors in the involuntary bankrupty petition. The Debtor filed a voluntary petition under Chapter 11 (Bankr. D. Nev. Case No. 08-10474) on Jan. 18, 2008. Laurel E. Davis, Esq., at Fennemore Craig PC, represents the Debtor in its restructuring efforts. An Ad Hoc Committee Holding Unsecured Claims has been appointed in the case and was represented by Jason C. Farrington, Esq., at DLA Piper US LLP. The Debtor listed total assets of $5,285,722 and total debts of $42,342,831. YARNELL'S ICE: Files for Chapter 7 Bankruptcy Protection -------------------------------------------------------- Dayton Daily News, citing report from the Associated Press, says Yarnell's Ice Cream Company Inc. has filed for Chapter 7 bankruptcy in the U.S. Bankruptcy Court in the Eastern District of Arkansas less than two months after shutting down its operations. The Company listed $8 million in assets and $15.7 million in total liabilities. The company said it has received offers to purchase its assets, including property, the Yarnell's name, recipes and inventory. The report says Yarnell's ceased operations June 30 after nearly 80 years in business and laid off about 200 workers in Searcy as well as Tennessee and Mississippi. The report adds the Company cited a decline in ice cream sales and rising prices that it says has hit the industry hard. ZOGENIX INC: Files Form S-1, Registers 12 Million Common Shares --------------------------------------------------------------- Zogenix, Inc., filed with the U.S. Securities and Exchange Commission a Form S-1 registration statement relating to the sale of 12,000,000 shares of the Company's common stock. The Company's common stock is listed on the Nasdaq Global Market under the symbol "ZGNX." On Aug. 22, 2011, the last reported sale price of the Company's common stock on the Nasdaq Global Market was $3.40 per share. The Company intends to use the net proceeds from this offering to fund the cost of submitting an New Drug Application to the Food and Drug Administration U.S. regulatory approval of Zohydro, to fund the initial clinical development of Relday and to fund the ongoing commercialization of Sumavel DosePro and for working capital and other general corporate purposes. A full-text copy of the Form S-1 prospectus is available for free at http://is.gd/1nzDu4 About Zogenix Inc. Zogenix, Inc. (NASDAQ: ZGNX), with offices in San Diego and Emeryville, California, is a pharmaceutical company commercializing and developing products for the treatment of central nervous system disorders and pain. The Company's balance sheet at June 30, 2011, showed $51.4 million in total assets, $58.5 million in total liabilities, and a stockholders' deficit of $7.1 million. As reported in the TCR on March 8, 2011, Ernst & Young LLP, in San Diego, Calif., expressed substantial doubt about Zogenix's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that of the Company's recurring losses from operations and lack of sufficient working capital. * RealtyTrac: Foreclosure Sales Climb While Sale Prices Decline --------------------------------------------------------------- Dow Jones' DBR Small Cap reports that nearly one-third of all U.S. homes sold in the second quarter of 2011 were in some stage of the foreclosure process or had been repossessed by a lender, according to numbers released by RealtyTrac. * Ex-Kaye Scholer Atty Says Indictment May Prejudice Jury --------------------------------------------------------- Lisa Uhlman at Bankruptcy Law360 reports that a former Kaye Scholer LLP partner on Monday again asked a Utah federal court to trim his bankruptcy fraud case, this time by removing language in the indictment that implies he may have committed other offenses, which he says could prejudice a jury. According to Law360, the case, which accuses Stephen E. Garcia of bankruptcy fraud, wire fraud and making a false oath, involves his role as debtors' counsel in bankruptcy cases involving Geneva Steel Co. and its successors. * BDO and KPMG Confirm Sale of KPMG's Consumer Insolvency Practice ------------------------------------------------------------------ Continuing to expand on one of Canada's most comprehensive financial recovery practices, BDO Canada Limited has announced the integration of KPMG's consumer insolvency practice into BDO's national financial recovery services practice. Effective Aug. 26, 2011, the practices now operate under the BDO Canada Limited name. BDO's financial recovery services practice now consists of 76 Chartered Insolvency and Restructuring Professionals and over 240 other professional and administrative staff combined, working in over 95 offices across the country. This sale makes BDO one of the largest teams of professionals providing consumer insolvency services in Canada. The newly expanded team of trustees in bankruptcy, proposal administrators, credit counsellors and support staff will continue delivering quality, timely and professional advice to individuals and businesses with financial difficulties across Canada. "KPMG is making the strategic decision to focus on our corporate restructuring and turnaround services" says Bill Thomas, CEO of KPMG. "As a firm that has a strong bankruptcy practice in Canada, BDO was the best destination choice for our consumer bankruptcy team and clients." Bill Courage, National Insolvency Practice Leader, of BDO Canada Limited stated: "We are proud to combine forces with such a strong practice. Our teams and leadership groups across the country share a common strength and philosophy of helping individuals and business owners find win-win solutions with creditors. We are excited to have KPMG's team of well-respected professionals and their staff joining BDO." Keith Farlinger, Chief Executive Officer of BDO Canada LLP, adds: "This integration demonstrates our ongoing commitment to building and strengthening our financial recovery practice across Canada. On behalf of our firm, I am pleased to welcome the KPMG team." BDO is the fifth largest single national accounting and advisory partnership in Canada with 95 offices nationwide. * Cohen & Grigsby Reaffirms Support of Arts Community ----------------------------------------------------- Cohen & Grigsby, a business law firm with headquarters in Pittsburgh, PA and an office in Bonita Springs, FL, has once again demonstrated its support of the arts and cultural pursuits in the greater Pittsburgh region by renewing its partnership with the Pittsburgh Cultural Trust. The law firm will serve as the Presenting Sponsor of the 2011-12 "Trust Presents" series, a programming division of the Pittsburgh Cultural Trust that offers an eclectic selection of entertainment - from live music and comedy to dazzling dancers and world-famous artists. This is the fourth consecutive year that Cohen & Grigsby has served as the presenting sponsor of the series. "Pittsburgh is in the midst of its third renaissance as we speak. While the region remains proud of its industrial heritage, our economy has redefined itself and has developed strong roots in education, health care and technology," said Jack Elliott, president and CEO of Cohen & Grigsby. "For Pittsburgh to maintain its status as a desirable place to live and work, we need to be certain that the region also has a thriving, vibrant arts community. Our support of the Pittsburgh Cultural Trust is playing an important role in that endeavor, and we are proud to continue our partnership with them." The Pittsburgh Cultural Trust is a non-profit organization dedicated to the promotion and development of Pittsburgh's downtown Cultural District. The 2011-12 edition of the "Trust Presents" series includes more than 20 performances at both the Byham Theater and the Benedum Center downtown. Performances include music by The Temptations and the Four Tops, comedy by Lily Tomlin, dance by Shantala Shivalingappa, and commentary by Mike Daisey. Additionally, "Trust Presents" will host National Geographic Live, a three-part lecture series, featuring three award-winning photographers. "Trust Presents" runs through May 13, 2012. "By serving as an ongoing presenting sponsor of the 'Trust Presents' series, Cohen & Grigsby continues to distinguish itself as an exceptional supporter of the arts in this region," said J. Kevin McMahon, president of the Pittsburgh Cultural Trust. "Their significant contribution enables us to continue presenting diverse performing and visual arts programs to the region, helping to further the Trust's vision of elevating the Cultural District's reputation as a premiere destination for art and entertainment." When Cohen & Grigsby re-established its Pittsburgh headquarters in the city's Cultural District several years ago, the firm made another tangible commitment to the arts community. The firm's offices (EQT Plaza, 625 Liberty Avenue, Pittsburgh) house an art gallery that has become a dedicated space for local artists to showcase their work to the public. Since it's opening more than two years ago, the gallery has hosted exhibitions from the Associated Artists of Pittsburgh (AAP) and Burton Morris, an internationally acclaimed artist who calls Pittsburgh his hometown. 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. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Oct. 14, 2011 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Tampa Convention Center, Tampa, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. __, 2011 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Dublin, Ireland Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 25-27, 2011 TURNAROUND MANAGEMENT ASSOCIATION Hilton San Diego Bayfront, San Diego, CA Contact: http://www.turnaround.org/ Dec. 1-3, 2011 AMERICAN BANKRUPTCY INSTITUTE 23rd Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ April 3-5, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Grand Hyatt Atlanta, Atlanta, Ga. Contact: http://www.turnaround.org/ Apr. 19-22, 2012 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ July 14-17, 2012 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 2-4, 2012 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay, Cambridge, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ November 1-3, 2012 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Westin Copley Place, Boston, Mass. Contact: http://www.turnaround.org/ Nov. 29 - Dec. 2, 2012 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference JW Marriott Starr Pass Resort & Spa, Tucson, Ariz. Contact: 1-703-739-0800; http://www.abiworld.org/ April 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/ October 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers" public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors" Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2011. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***