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/raid1/www/Hosts/bankrupt/TCR_Public/110905.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, September 5, 2011, Vol. 15, No. 246 Headlines 1318 9TH: Case Summary & 3 Largest Unsecured Creditors A-PLUS FABRICS: Case Summary & 13 Largest Unsecured Creditors ACCESS INSURANCE: Case Summary & 20 Largest Unsecured Creditors ADOBE HOLDINGS: Case Summary & 19 Largest Unsecured Creditors ALABAMA AIRCRAFT: Judge Approves Sale of Asset to Kaiser ALLEN CAPITAL: Proposes Modifications to 5th Amended Plan ALLIED DEFENSE: Files Certificate of Dissolution in Delaware ALLIED IRISH: Reports EUR2.2 Billion Profit for Half Year 2011 ANDERSON NEWS: Court Dismisses Suit v. Parent, Lawyers ARCTIC GLACIER: Waiver From Lenders Expires Sept. 9 ARMTEC HOLDINGS: DBRS Confirms Issuer Rating at 'B' BEAR MOUNTAIN: Case Summary & 4 Largest Unsecured Creditors ASTORIA GENERATING: Retains Perella Weinberg Partners as Advisors BELGIUM CO: Case Summary & 20 Largest Unsecured Creditors BERNARD L. MADOFF: Trustee Sues Barclays, Others for $218 Million BMB MUNAI: Inks 1st Amendment to Palaeontol Participation Pact BRICKMAN GROUP: S&P Revises Outlook to Negative; CCR at 'B' BRIDGEVIEW AEROSOL: Committee Has Figliulo for Probe vs. Insiders CARBONE COS: Panel's Suit Against Dwyer Firm Goes to Trial CARTER'S GROVE: Exclusive Solicitation Period Extended to Oct. 11 CELL THERAPEUTICS: Annual Meeting Set for Nov. 11 CELL THERAPEUTICS: Has $4.8 Million Net Loss in July CHIPPEWA COUNTY: S&P Puts BB Rating on $4MM Bonds on Watch Neg. CONSECO FINANCE: App. Ct. Reverses Ruling in Travis County Suit CORELOGIC INC: S&P Affirms BB Corporate, Gives Negative Outlook CREEKSIDE BANK: Closed; Georgia Commerce Bank Assumes All Deposits CROWNROCK LP: S&P Assigns 'CCC+' Corporate Credit Rating DIABETES AMERICA: Oct. 5 Hearing on Liquidating Plan DOMINGO VILLAS: Case Summary & 16 Largest Unsecured Creditors DREIER LLP: Reaches Settlement With 360 Networks DYLANS DANCE HALL: Files for Chapter 11, to Reopen Soon EAGLE CROSSROADS: Case Summary & 19 Largest Unsecured Creditors EAST WILLIAMSBURG: Case Summary & 3 Largest Unsecured Creditors EDWARD YODER: Monarch Ex-CEO Has $2.7MM in Assets, $4MM in Debts ELITE PHARMACEUTICALS: Amends Certificates of Designations EVERGREEN ENERGY: Inks $750,000 Settlement with Insurance Carrier FAIRCHILD MANOR: Case Summary & 20 Largest Unsecured Creditors FENTURA FINANCIAL: Randy Hicks Appointed to Board of Directors FIDDLER'S CREEK: Secured $6.3MM of DIP Financing for August FIRST MARINER: Request for Continued NASDAQ Listing Denied FIRST STREET: Case Summary & 12 Largest Unsecured Creditors FLEXERA SOFTWARE: Cut to 'B' Corporate by S&P; Outlook Stable GREAT ATLANTIC & PACIFIC: Has Until Jan. 16 to File Plan GGIS INSURANCE: Case Summary & 7 Largest Unsecured Creditors HARRISBURG, PA: Fate Now In The Hands Of Pennsylvania's Governor HERITAGE CONSOLIDATED: Had Approval for Cash Use for August HORIZN VILLAGE: Court Approves Gordon Silver as Bankr. Counsel HOVENSA LLC: S&P Lowers Rating on First-Lien Facility to 'B' IMH FINANCIAL: $50-Mil. Funding Paves Way for Recovery, Growth INNER CITY: Senior Lenders Want to Restrict Use of Cash Collateral INT'L COMMERCIAL: Board Appoints Richard Ransom as President INTERTAPE POLYMER: S&P Raises Corporate Credit Rating to 'B-' IRON MINING: Files for Reorganization Relief Under Chapter 11 LOCAL INSIGHT: Plan Outline Hearing Scheduled for Sept. 20 LOCAL INSIGHT: Stipulation on Investigation-Related Fees Approved LOCATION BASED TECHNOLOGIES: 3 Directors Elected at Annual Meeting LYDIAN SF: Case Summary & 2 Largest Unsecured Creditors LYMAN LUMBER: Bankruptcy Judge Gives OK to Auction Assets M WAIKIKI: Files for Bankruptcy to Fend Off Marriott M WAIKIKI: Marriott Says Owner Bankruptcy Self-Defeating M WAIKIKI: Voluntary Chapter 11 Case Summary MARCO POLO: Targets Credit Agricole Unit Over Ship Arrest MOORE SORRENTO: May Use Wells Fargo Cash Collateral until Sep. 18 MOORE SORRENTO: Sec. 341 Creditors' Meeting Set for Sept. 21 MOORE SORRENTO: Targets Sept. 14 Schedules Filing MOORE SORRENTO: Seeks to Hire Forshey & Prostok as Counsel NORTEL NETWORKS: Retiree Committee Taps Togut Segal as Counsel NOVADEL PHARMA: Court Upholds Pfizer's Use Patent for ED to 2019 OLD CORKSCREW: Court Approves Kapila & Company as CRO OLD CORKSCREW: Court Approves McDowell Rice as General Counsel OLD CORKSCREW: Files Schedules of Assets & Liabilities OMEGA NAVIGATION: Has Court Nod to Pay Critical Vendor Claims PACIFIC CAPITAL: DBRS Confirms 'B' Issuer & Senior Debt Rating PARAMOUNT LIMITED: Can Hire McDonald Hopkins as Counsel PARMALAT SPA: Judge Affirms His Jurisdiction in Auditor Suits PATRIOT BANK: Closed; Georgia Commerce Bank Assumes All Deposits PENINSULA HOSPITAL: Sept. 13 Hearing for Patient Care Ombudsman PENN TREATY: Provides Status on PTAC Liquidation Proceedings PERKINS & MARIE: S&P Withdraws 'D' CCR on Lack of Information PORTER HILLS: S&P Cuts Rating on Series 2003 Securities to 'BB-' QEP RESOURCES: S&P Rates $1.5-Bil. Sr. Credit Facility at 'BB+' QUALTEQ INC: U.S. Trustee Appoints 5-Member Creditor's Panel QUANTUM FUEL: Amends Terms of WB QT Convertible Promissory Notes RANCHER ENERGY: Seeks to Hire Stinson Morrison as Special Counsel READER'S DIGEST: S&P Lowers Corporate Credit Rating to 'CCC+' REGAL PLAZA: Has Lender Deal, Seeks Case Dismissal RIDGE PARK: Can Hire Levene Neale as Bankruptcy Counsel SBARRO INC: S&P Withdraws D Corp. Credit Rating on Lack of Info SHASTA LAKE: Court OKs Downey Brand as Counsel SHANE'S FLIGHT DECK: Shane's Bar Files for Chapter in Harrisburg SHENGDATECH INC: Taps Garden City Group as Claims Agent SHENGDATECH INC: Seeks Nod for Michael Kang as CRO SHENGDATECH INC: 341(a) Creditors' Meeting Moved to Oct. 17 SHENGDATECH INC: U.S. Trustee Appoints 3-Member Creditor's Panel SSI SYSTEMS: Case Summary & 20 Largest Unsecured Creditors STELLAR GT: Can Hire CB Richard Ellis as Real Estate Broker SUMMO INC: Seeks to Hire Daniel K. Usiak, Jr. as Counsel SUNNYVALE BUSINESS: Files Schedules of Assets And Liabilities THINK3 INC: $1.05MM Loan from Gensym Cayman Gets Final Approval THINK3 INC: Postpones Assets Sale Plea to This Month THOMAS HICKS: Voluntary Chapter 11 Case Summary TOUSA INC: Can Use Lenders' Cash Collateral Through Sept. 30 US FIDELIS: Can Use Lenders' Cash Collateral Through Sept. 30 US POSTAL: Rep. Issa Launches SavingThePostalService.com VERAX RESTAURANT: Case Summary & 21 Largest Unsecured Creditors VITRO SAB: Unit Files Schedules of Assets and Liabilities WASHINGTON MUTUAL: Judge Tosses Ex-Workers' Compensation Claims WELLCARE HEALTH: S&P Withdraws 'B' Counterparty Credit Rating WYLE SERVICES: S&P Keeps B+ Corp. Credit Rating; Outlook Stable YRC WORLDWIDE: Board Approves Director Compensation Plan ZALE CORP: Incurs $32.6 Million Net Loss in July 31 Quarter * Berger Singerman Adds Hahn & Hessen Bankruptcy Pro * BOND PRICING -- For The Week From Aug. 29 to Sept. 2, 2011 ********* 1318 9TH: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------ Debtor: 1318 9th Street LLC 1318 9th Street, NW Washington, DC 20001 Bankruptcy Case No.: 11-00637 Chapter 11 Petition Date: August 31, 2011 Court: U.S. Bankruptcy Court District of Columbia (Washington, D.C.) Judge: S. Martin Teel, Jr. Debtor's Counsel: Steven H. Greenfeld, Esq. COHEN, BALDINGER & GREENFELD LLC 7910 Woodmont Avenue, Suite 1103 Bethesda, MD 20814 Tel: (301) 881-8300 Fax: (301) 881-8350 E-mail: steveng@cohenbaldinger.com Scheduled Assets: $0 Scheduled Debts: $1,510,000 A list of the Company's three largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/dcb11-00637.pdf The petition was signed by Tom McGuire, president. A-PLUS FABRICS: Case Summary & 13 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: A-Plus Fabrics, Inc. 1323 Flower Street Los Angeles, CA 90015 Bankruptcy Case No.: 11-47488 Chapter 11 Petition Date: September 1, 2011 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Ellen Carroll Debtor's Counsel: David R. Haberbush, Esq. HABERBUSH & ASSOCIATES, LLP 444 W. Ocean Boulevard, Suite 1400 Long Beach, CA 90802 Fax: (562) 435-6335 E-mail: dhaberbush@lbinsolvency.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 13 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/cacb11-47488.pdf The petition was signed by Elliot Tishbi, president. ACCESS INSURANCE: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Access Insurance Services, Inc. 3301 S. Virginia Street Reno, NV 89502 Tel: (775) 829-2600 Bankruptcy Case No.: 11-52830 Chapter 11 Petition Date: September 1, 2011 Court: U.S. Bankruptcy Court District of Nevada (Reno) Judge: Bruce T. Beesley Debtor's Counsel: Stephen R. Harris, Esq. BELDING, HARRIS & PETRONI, LTD 417 W. Plumb Lane Reno, NV 89509 Tel: (775) 786-7600 Fax: (775) 786-7764 E-mail: steve@renolaw.biz Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Jeffrey P. Shaffer, director. Debtor's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Sidecars-VSC Claim $2 1919 East 20th, Suite C Joplin, MO 64804 EMS Claim $2 2063 Beechmont Avenue, Suite 4 Cincinnati, OH 45230 Tripro Group Claim $2 8333 SW Cirrus Drive Beaverton, OR 97008 Sidecars-CPC Claim $2 Roberts Group Claim $2 NADC Claim $2 NADC Claim $2 LG Warranty Claim $2 IAP-GPR Claim $2 Foresight VSC/FPP Claim $2 Foresight Dealer Managed Claim $2 Express Systems-T4L Claim $2 Express Systems-ECM Claim $2 Identity Sentinel Claim $2 Express Systems-ERG Claim $2 Cush Honda of San Diego Claim $1 Brooks Biddle Chevrolet Co Claim $1 Burdick Toyota Claim $1 Capitol Honda Claim $1 Christopher's Dodge World, Inc. Claim $1 ADOBE HOLDINGS: Case Summary & 19 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Adobe Holdings, Inc. 3275 Orange Sun Street Las Vegas, NV 89135 Bankruptcy Case No.: 11-24115 Chapter 11 Petition Date: September 1, 2011 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Mike K. Nakagawa Debtor's Counsel: Ryan Alexander, Esq. LAW OFFICES OF RYAN ALEXANDER 200 E. Charleston Boulevard Las Vegas, NV 89104 Tel: (702) 222-3476 Fax: (702) 252-3476 E-mail: ryan@thefirm-lv.com Scheduled Assets: $9,377,900 Scheduled Debts: $45,963,200 A list of the Company's 19 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/nvb11-24115.pdf The petition was signed by Robert E. Rippe, president. ALABAMA AIRCRAFT: Judge Approves Sale of Asset to Kaiser -------------------------------------------------------- Lance Duroni at Bankruptcy Law360 reports that U.S. Bankruptcy Judge Peter J. Walsh on Wednesday cleared Alabama Aircraft Industries Inc. to sell its assets to a unit of Kaiser Group Holdings Inc. for $500,000 and up to $30 million in recoveries from potential litigation. Judge Walsh gave his blessing to the deal despite staunch opposition from Chicago-based aircraft giant Boeing Co. - the likely target of litigation envisioned by Alabama Aircraft, according to Law360. Aviation giant Boeing accused the buyer of crafting the deal to shield the Company's former executives from lawsuits. Boeing said the sale is fundamentally unfair because it would protect Alabama Aircraft's officers and directors, while putting the Company's customers and vendors in the crosshairs of the buyer. About Alabama Aircraft Birmingham, Alabama-based Alabama Aircraft Industries Inc. -- http://www.alabamaaircraft.com/-- provides aircraft maintenance and modification services for the U.S. government and military customers. Its 190-acre facility, including its corporate offices, is located at the Birmingham International Airport. The Company currently has 92 salaried employees and 234 hourly employees. About 251 hourly employees were furloughed since Jan. 1, 2010. Alabama Aircraft filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 11-10452) on Feb. 15, 2011. Two subsidiaries also filed -- Alabama Aircraft Industries, Inc.- Birmingham (Case No. 11-10453) and Pemco Aircraft Engineering Services, Inc. (Case No. 11-10454). The Company said the primary goal of the Chapter 11 filing is to address long-term indebtedness and, in particular, long-term pension obligations under the terms of its pension plan. The Company said it would likely cease operations absent the elimination of its obligations under the pension plan. The Company owes $68.5 million to the Pension Benefit Guaranty Corp. Joel A. Waite, Esq., and Kenneth J. Enos, Esq., at Young, Conaway, Stargatt & Taylor, in Wilmington, Delaware, serve as counsel to the Debtors. Alabama Aircraft estimated assets and debts of $1 million to $10 million as of the Chapter 11 filing. ALLEN CAPITAL: Proposes Modifications to 5th Amended Plan --------------------------------------------------------- Allen Capital Partners, LLC, and DLH Master Land Holding, LLC, propose to make modifications to their Amended Fifth Joint Plan of Reorganization and in accordance with those modifications, seek that the U.S. Bankruptcy Court for the Northern District of Texas value certain parcels of real property which is being distributed to Compass Bank. The Modifications include: * Payment of 2010 Ad Valorem Property Taxes, specifically to Dallas County and Madrigal Trust * Modifications to the treatment of: -- DLH Class 3 Subclass A: Pool 1 - Compass Pool -- DLH Class 3 Subclass B: Pool 2 - Hutchins Industrial Pool -- DLH Class 3 Subclass D: Pool 4 - Seller Financing Pool -- ACP Disputed Security Guaranty for Compass -- ACP Disputed Unsecured Guaranty for Compass * Additional Exit Financing, whereby one or more of the current DIP Lenders, Richard Allen, and Luke Allen have agreed to provide Reorganized DLH a $2,000,000 line of credit. A copy of the Modifications is available for free at: http://bankrupt.com/misc/ALLENCAPITAL_Modto5thAmndedPlan.PDF The Plan Modifications are proposed in order to resolve certain objections to the Plan. The Debtors believe the Modifications are non-material changes to the Plan that do not adversely affect the treatment of any creditor that has voted to accept the Plan. Thus, the Debtors assert, no further solicitation of the Plan or a re-vote on the Plan is necessary. About Allen Capital Allen Capital Partners LLC and subsidiary DLH Master Land Holding LLC, are the developers of Dallas Logistics Hub, a 6,000-acre multimodal logistics park 12 miles (19 kilometers) from downtown Dallas. Allen Capital Partners, LLC, dba The Allen Group, filed for Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 10- 30562) on Jan. 25, 2010. Mark MacDonald, Esq., at MacDonald + MacDonald, P.C., represents the Debtor. Lain, Faulkner & Co. is the Debtor's financial advisor. The Company disclosed $220,325,201 in assets and $160,622,236 in liabilities as of the Chapter 11 filing. The Debtor's affiliate -- DLH Master Land Holding, LLC, dba The Allen Group -- filed a separate Chapter 11 bankruptcy petition. Another affiliate, Visalia, California-based Richard S. Allen, Inc., filed for Chapter 11 bankruptcy protection (Bankr. N.D. Texas Case No. 10-33211) on May 3, 2010. Patrick J. Neligan, Jr., Esq., at Neligan Foley LLP, represents the Debtor. The Company disclosed $76,158,469 in assets and $53,728,982 in liabilities as of the petition date. The Debtors' proposed Reorganization Plan contemplates that the Debtors will obtain sufficient exit financing from sales and loans from insiders to enable them to pay all Administrative and non-tax Priority Claims in full on the effective date. No trustee or examiner has been appointed in any of the cases administratively consolidated with those of the Debtors. An Official Committee of Unsecured Creditors has been appointed. ALLIED DEFENSE: Files Certificate of Dissolution in Delaware ------------------------------------------------------------ The Allied Defense Group, Inc., announced that it has filed a Certificate of Dissolution with the State of Delaware. This action is pursuant to the Plan of Complete Liquidation and Dissolution approved by its stockholders on Sept. 30, 2010, and is consistent with Allied's SEC filings and periodic stockholder letters. Further consistent with the Plan of Complete Liquidation and Dissolution and prior announcements, Allied has instructed its stock transfer agent to cease recording transfers of its common stock as of the close of business Aug. 31, 2011. 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. and Mecar USA, Inc. Mecar is located in Nivelles, Belgium and Mecar USA is located in Marshall, Texas. 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 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. ALLIED IRISH: Reports EUR2.2 Billion Profit for Half Year 2011 -------------------------------------------------------------- Allied Irish Banks, p.l.c., reported profit of EUR2.23 billion on EUR604 million of net interest income for the half-year ended June 30, 2011, compared with a loss of EUR1.73 billion on EUR1.02 billion of net interest income for the same period a year ago. The Company's balance sheet at June 30, 2011, showed EUR126.87 billion in total assets, EUR120.01 billion in total liabilities, and EUR6.86 billion in total shareholders' equity including non-controlling interests. A full-text copy of the Half Year Results is available at no charge at http://bankrupt.com/misc/AIBJuneHalf2011.pdf About Allied Irish Banks, p.l.c. Allied Irish Banks, p.l.c. -- http://www.aibgroup.com/-- is a major commercial bank based in Ireland. It has an extensive branch network across the country, a head office in Dublin and a capital markets operation based in the International Financial Services Centre in Dublin. AIB also has retail and corporate businesses in the UK, offices in Europe and a subsidiary company in the Isle of Man and Jersey (Channel Islands). Since the onset of the global and Irish financial crisis, AIB's relationship with the Irish Government has changed significantly. As at Dec. 31, 2010, the Government, through the National Pension Reserve Fund Commission ("NPRFC"), held 49.9% of the ordinary shares of the Company (the share of the voting rights at shareholders' general meetings), 10,489,899,564 convertible non- voting ("CNV") shares and 3.5 billion 2009 Preference Shares. On April 8, 2011, the NPRFC converted the total outstanding amount of CNV shares into 10,489,899,564 ordinary shares of AIB, thereby increasing its holding to 92.8% of the ordinary share capital. In addition to its shareholders' interests, the Government's relationship with AIB is reflected through formal and informal oversight by the Minister and the Department of Finance and the Central Bank of Ireland, representation on the Board of Directors (three non-executive directors are Government nominees), participation in NAMA, and otherwise. As reported by the TCR on May 31, 2011, KPMG, in Dublin, Ireland, noted that there are a number of material economic, political and market risks and uncertainties that impact the Irish banking system, including the Company's continued ability to access funding from the Eurosystem and the Irish Central Bank to meet its liquidity requirements, that raise substantial doubt about the Company's ability to continue as a going concern. The Company reported a net loss of EUR10.16 billion on EUR1.84 billion of interest income for 2010, compared with a net loss of EUR2.33 billion on $2.87 billion of interest income for 2009. ANDERSON NEWS: Court Dismisses Suit v. Parent, Lawyers ------------------------------------------------------ District Judge Virginia M. Hernandez-Covington dismissed a lawsuit commenced by proprietors of a newsstand in Clearwater, Florida, known as Downtown Newsstand, against Anderson Media, Young Conaway Stargatt & Taylor, LLP and John D. McLaughlin, Esq., saying the Court lacks subject matter jurisdiction over the lawsuit, personal jurisdiction has not been established over the Defendants, and the Complaint fails to state a claim upon which relief can be granted. Linda Gail Franklin, et al., v. Anderson Media, et al., Case No. 8:10-cv-2935-T-33MAP (M.D. Fla.), revolves around a debt collection dispute involving Anderson News and has been the subject of several actions brought by the Plaintiffs against various defendants. Prior to February 2009, the Plaintiffs had a business relationship with Anderson News, LLC, a subsidiary of Anderson Media. The Plaintiffs assert two causes of action related to the manner in which Anderson News went out of business and a dispute over a "return credit" not given towards the final billing. The Plaintiffs allege that during 2009 Anderson News, at the direction of the parent company, Anderson Media, dispersed and disposed of some $770 million in monies/assets of Anderson News to 13 affiliates of the parent, Anderson Media. They further allege that Anderson News was finally "hollowed out" and left with virtually no value in the first week of February 2009. A copy of Judge Hernandez-Covington's Aug. 31, 2011 Order is available at http://is.gd/p0f8uPfrom Leagle.com. Anderson News LLC is a sales and marketing company for books and magazines. Anderson News ceased doing business in February 2009, and was the subject of an involuntary bankruptcy filing (Bankr. D. Del. 09-_____) on March 2, 2009, on which an order for relief was entered on Dec. 30, 2009. The publishing companies claimed that Anderson News owes them a combined $37.5 million. Anderson News converted the case to a voluntary chapter 11 case on the same day. ARCTIC GLACIER: Waiver From Lenders Expires Sept. 9 --------------------------------------------------- Arctic Glacier Income Fund disclosed that the Fund's secured lenders have extended the period during which they have waived compliance with certain financial covenants under its credit facilities up to and including Sept. 9, 2011. The Fund was in breach of financial covenants governing maximum leverage ratio, interest coverage ratio, fixed charge coverage ratio and minimum EBITDA levels under its credit facilities as at June 30, 2011. Subsequent to the end of the quarter, on July 29, 2011, the Fund's secured lenders waived compliance with those covenants for the quarter ended June 30, 2011 until Sept. 1, 2011. Arctic Glacier is continuing active discussions with its lenders to amend certain terms of the credit agreements for future quarters, although there can be no assurance that such amendments will be approved. About Arctic Glacier Arctic Glacier Income Fund, through its operating company, Arctic Glacier Inc., is a leading producer, marketer and distributor of high-quality packaged ice in North America, primarily under the brand name of Arctic Glacier(R) Premium Ice. Arctic Glacier operates 39 production plants and 48 distribution facilities across Canada and the northeast, central and western United States servicing more than 75,000 retail locations. Arctic Glacier Income Fund trust units are listed on the Toronto Stock Exchange under the trading symbol AG.UN. There are currently 350.3 million trust units outstanding. ARMTEC HOLDINGS: DBRS Confirms Issuer Rating at 'B' --------------------------------------------------- DBRS has confirmed the Issuer Rating of Armtec Holdings Limited at B (high) but has changed the trend to Negative. The confirmation recognizes that the Company has significantly reduced its financial risk by securing committed financing (the Brookfield Facility) from Brookfield Management Inc. (BAM; rated A (low) by DBRS). This has removed the uncertainty regarding refinancing in the next 24 to 30 months, allowing the Company to focus on turning its operations around. The Negative trend reflects the fact that Armtec's financial profile is weak and it faces significant headwinds to stage a recovery. DBRS has also confirmed the recovery rating on Armtec's Senior Unsecured Debt at RR5 and the associated instrument rating at B; the trend is also Negative. With these rating actions, the ratings have been removed from Under Review with Negative Implications, where they were placed on July 26, 2011. The Company announced on August 19, 2011, that it had completed the Brookfield Facility - a $125 million secured loan facility with a term of two years (extendable to 30 months at Armtec's option) and has paid off the secured bank credit facility in full. DBRS deems securing the Brookfield Facility a net positive development, as this facility has a longer term and less- restrictive financial covenants (albeit higher interest costs) than the bank facility. This is favorable because (1) it removes a significant risk that the Company may breach the bank facility covenants and suffer the resultant dire consequences; (2) the Company will have more operating flexibility due to less financial constraints; and (3) senior management has been relieved of a huge distraction in not having to negotiate constantly with the banks and can now focus on turning the operations around. On the day the Brookfield Facility was completed, the Company borrowed the full $125 million and paid off the senior bank facility in full, with remaining proceeds of $28 million available for general corporate purposes and transaction costs. The Company's working capital needs normally peak in the third quarter. DBRS believes that the remaining cash on hand, although modest, should provide the Company a sufficient cushion to meet its funding needs. Furthermore, working capital will decline in the fourth quarter according to its seasonal pattern and generate cash to bolster cash reserves. Armtec's performance suffered a sharp deterioration in the first half of 2011 due to a combination of operating inefficiencies, bad (low-margin bidding) contracts, customer project delays, unforeseen higher costs related to project complexity and unfavorable market conditions. In addition, DBRS believes that senior management has been distracted by the ongoing major organizational changes. A key focus of management in 2010 was on reorganizing its operations into regional operating units. Further complicating matters, the Company was also implementing a new company-wide Enterprise Resource Planning (ERP) system trying to merge its existing disparate systems. The disruptions and complications of implementing these major changes to the organization concurrently have contributed to the inefficiencies and poor operating results. The Company faces significant challenges to turn its operations around. The near-term outlook is not encouraging. The general economy appears to have stalled, extending the slowdown of work in the Construction and Infrastructure (CIA) business. Margins are also expected to be affected by the low bidding margin Engineered Solutions (ES) business at least through the end of 2011. In addition, the Company needs to overcome operating inefficiencies in the organization and ensure the conversion into a single ERP system to run smoothly. The transition into a single system in the first half of 2011 proved to be difficult and has impaired management visibility into the business and its ability to forecast. The key priority for the balance of 2011 is to ensure that the conversion is successful, allowing management to have timely information to manage the business effectively. In addition, the Company appointed a chief operating officer in March 2011 to drive operational improvement. Armtec's liquidity position, although deemed adequate, is modest; the Company has to be diligent in managing its highly seasonal working capital needs. Nevertheless, DBRS believes that the Company's business profile remains sound despite the disappointing operating results. Armtec is the only national provider of infrastructure-related products in Canada, with leading market positions in its core markets. The Company has a well-balanced portfolio of work between the lower- margin but stable CIA business and the normally higher-margin but volatile ES business. Armtec has low capital expenditures requirements, which in combination with the suspension of dividends should help improve its liquidity. Going forward, the Company expects results in the ES business to remain under pressure until existing lower-margin projects run off near the end of 2011. Additionally, the CIA business is not expected to rebound in 2011 as activities in the residential, commercial and industrial construction markets remain subdued. DBRS will monitor the Company's progress in overcoming the headwinds mentioned above. Special attention will be on the progress in improving ES margins in 2012 after the run-off of the low bidding margin projects. In addition, DBRS will evaluate the Company's progress in driving operational improvements and the deployment of the ERP system. DBRS expects operating performance in the last half of 2011 to be at least comparable to the year-ago period. Failure to stabilize operating results in the last half of 2011 and to show steady improvement, especially gross margins in ES projects, in 2012, and to demonstrate progress in the two key management initiatives (operational improvement and ERP deployment) would likely lead to at least a one-notch downgrade. Pursuant to our rating methodology for leveraged finance, DBRS has created a default scenario for Armtec in order to analyze when and under what circumstances a default could hypothetically occur and the potential recovery of the Company's debt in the event of such default. The scenario assumes that the economy fails to recover and falls into a recession again in 2012. DBRS has determined Armtec's estimated value at default using an EBITDA multiple valuation approach, consistent with a view that default would likely result in the restructuring and/or recapitalization of the assets with value as a going concern versus the sale of its individual assets. EBITDA multiples utilized are applied to cyclically normalized EBITDA at default as opposed to the actual low EBITDA values expected at the time of default, reflecting the forward-looking nature of the valuation. The valuation considers the issuer and the specific debt instruments, allocating value proceeds accordingly. DBRS has forecast the economic value of the components of the enterprise at approximately $148 million using a 4.0 times (x) multiple of normalized EBITDA for Armtec. Based on the default scenario, the Unsecured Notes have recovery estimated between 10% and 30%, hence the assigned recovery rating of RR5. The instrument rating of the senior unsecured debt is thus B. BEAR MOUNTAIN: Case Summary & 4 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Bear Mountain Ranch Holdings, LLC fka Bear Mountain, LLC dba Bear Mountain Orchards P.O. Box 1705 Chelan, WA 98816 Bankruptcy Case No.: 11-04354 Chapter 11 Petition Date: September 1, 2011 Court: U.S. Bankruptcy Court Eastern District of Washington (Spokane/Yakima) Judge: Patricia C. Williams Debtor's Counsel: Barry W. Davidson, Esq. DAVIDSON BACKMAN MEDEIROS PLLC 601 West Riverside Avenue, Suite 1550 Spokane, WA 99201 Tel: (509) 624-4600 Fax: (509) 623-1660 E-mail: cnickerl@dbm-law.net Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Jerald E. Scofield, managing member. Debtor's List of four Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Pinnacle Surveying Trade Debt $2,715 P.O. Box 1107 Chelan, WA 98816 Northwest Geodimensions Trade Debt $2,546 15 North Chelan Avenue Wenatchee, WA 98801 Bear Mountain Water District Services $762 P.O. Box 3091 Chelan, WA 98816 PUD No. 1 of Chelan County Utilities $83 P.O. Box 1231 Wenatchee, WA 98807-1231 ASTORIA GENERATING: Retains Perella Weinberg Partners as Advisors ----------------------------------------------------------------- Astoria Generating Company, L.P. has retained financial advisory firm Perella Weinberg Partners and the law firm of Kirkland & Ellis, LLP to provide guidance on a potential restructuring. This step is necessary due to the actions taken by the New York Independent System Operator which has resulted in dramatically lower market clearing prices for capacity for the New York Zone 'J' power market. Capacity pricing in July, August and September dropped approximately 50 percent from the spot auction results in June as a result of a government subsidized generating project being allowed to artificially depress prices. Unless these actions are reversed capacity prices would drop to near zero for the upcoming fall and winter months. "NYISO's actions have resulted in a fundamental failure of the marketplace," said Mark Sudbey CEO of US Power Generating Company, Astoria Generating's parent. "Generators rely on capacity pricing for the vast majority of their revenue and at these prices, even with no debt, we and other power generators will be forced to suffer significant and ongoing operating losses. The irony is that over the course of this summer and through recent heat waves we reliably provided nearly twenty percent of New York City's electric supply when it was needed the most, while at the same time the NYISO has taken actions that will not allow us to cover our basic operating costs." Astoria Generating Company and other market participants have filed complaints with the Federal Energy Regulatory Commission ("FERC") seeking immediate relief and ensuring that the NYISO has in place transparent and consistent policies and market mechanisms to support competitive power markets by reducing the ability of any generator or load side market participant to exercise market power. If FERC does not act and the NYISO does not begin to apply the rules as they were intended, capacity pricing in New York City will continue to deteriorate to a point where by year-end Astoria Generating cash flow will be insufficient to cover operating expenses, including property taxes, maintenance and capital expenditures. This outcome would leave the company with no choice but to consider a financial restructuring in the bankruptcy courts. Recently, Standard & Poor's downgraded Astoria Generating's debt to the CCC+/CCC- level from its prior ratings of BB-/B+. Perella Weinberg Partners is an independent, privately-owned financial services firm that provides corporate advisory and asset management services to clients around the world. Kirkland & Ellis LLP is a 1,500-attorney law firm representing clients in complex corporate and tax, restructuring, litigation and dispute resolution/arbitration, and intellectual property and technology matters. About Astoria Generating Astoria Generating Company, L.P. -- http://www.uspowergen.com/-- owns and operates power generation facilities with a total capacity of over 2,100MW in New York City. This subsidiary sells energy and capacity into the NYISO deregulated market, representing generation sufficient to serve approximately 20% of the overall load in New York. Astoria Generating Company, L.P. is a wholly owned subsidiary of US Power Generating Company. BELGIUM CO: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: The Belgium Co., Inc. 1100 Grape Avenue Saint Cloud, FL 34772 Bankruptcy Case No.: 11-13161 Chapter 11 Petition Date: August 30, 2011 Court: U.S. Bankruptcy Court Middle District of Florida (Orlando) Debtor's Counsel: Prabodh C. Patel, Esq. STRAUS & PATEL, P.A. 118 West Orange Street Altamonte Springs, FL 32714 Tel: (407) 331-5505 Fax: (407) 331-6308 E-mail: lpather@strauspatel.com Scheduled Assets: $1,840,719 Scheduled Debts: $1,615,618 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/flmb11-13161.pdf The petition was signed by Ivan Mazzaro, president/director. BERNARD L. MADOFF: Trustee Sues Barclays, Others for $218 Million ----------------------------------------------------------------- Ian Thoms at Bankruptcy Law360 reports that the trustee for Bernard Madoff's securities firm hit Barclays Bank SA, Cathay Life Insurance Co. Ltd. and others with adversary cases in New York on Thursday seeking the return of more than $218 million allegedly stolen from investors. Law360 relates that trustee Irving Picard said that one of Bernard L. Madoff Investment Securities LLC's largest feeder funds, Fairfield Sentry Ltd., had received about $3 billion of "customer property" from the company in a six-year period before his 2008 arrest. 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. BMB MUNAI: Inks 1st Amendment to Palaeontol Participation Pact -------------------------------------------------------------- BMB Munai, Inc., entered into a First Amendment and Waiver to the Participation Interest Purchase Agreement with Palaeontol B.V., as purchaser, and and MIE Holdings Corporation. The Amendment amends the previously disclosed Participation Interest Purchase Agreement, dated Feb. 14, 2011, by and among Purchaser, the Company and Parent to, among other things: (i) eliminate the post-closing transition services arrangement concept, which the parties have determined is no longer necessary; (ii) change the previously contemplated escrow agent to be Citibank, N.A., Hong Kong Branch, and the form of escrow agreement to be used in connection with the transaction; (iii) provide for the delivery into escrow, in advance of the closing of the transactions contemplated by the Agreement and in conjunction with the Company's submission with the appropriate Kazakhstan governmental authorities of the documents necessary to effect the sale of Emir-Oil LLC to Purchaser, of all of the funds to be delivered to the Company by Purchaser at the closing; (iv) waive two of Purchaser's conditions to closing that would have required the Company to (x) obtain insurance for the transportation and storage of cargo prior to completing the transaction, and (y) provide documentary evidence of Emir's ownership of gas utilization facilities, electricity lines, gas pipelines and oil pipelines prior to completing the transaction; and (v) update to their final forms the opinions to be delivered by the Company's counsel at closing. The Company has also agreed in the Amendment to provide the documentary evidence of Emir's ownership of the assets described above within three months of the closing date of the transaction. In addition, the Company has exercised its right under the Agreement to extend until Nov. 14, 2011, the date upon which the parties may terminate the Purchase Agreement for convenience. A full-text copy of the Amendment is available for free at: http://is.gd/89khDS About BMB Munai Based in Almaty, Kazakhstan, BMB Munai, Inc., is a Nevada corporation that originally incorporated in the State of Utah in 1981. Since 2003, its business activities have focused on oil and natural gas exploration and production in the Republic of Kazakhstan through its wholly-owned operating subsidiary Emir Oil LLP. Emir Oil holds an exploration contract that allows the Company to conduct exploration drilling and oil production in the Mangistau Province in the southwestern region of Kazakhstan until January 2013. The exploration territory of its contract area is approximately 850 square kilometers and is comprised of three areas, referred to herein as the ADE Block, the Southeast Block and the Northwest Block. The Company realized a loss from continuing operations of $15.1 million during fiscal year 2011 compared to $10.7 million during fiscal year 2010. This 41% increase in loss from continuing operations was primarily attributable to increased general and administrative and interest expense and the foreign exchange loss of $415,803 incurred during fiscal year 2011. Hansen, Barnett & Maxwell, P.C., in Salt Lake City, said that as a result of the pending sale of Emir Oil LLP, BMB Munai will have no continuing operations that result in positive cash flow, which raise substantial doubt about its ability to continue as a going concern. The Company did not generate any revenue during the fiscal years ended March 31, 2011, and 2010, except from oil and gas sales through Emir Oil. The Company's balance sheet at June 30, 2011, showed $326.89 million in total assets, $103.95 million in total liabilities, and $222.93 million total stockholders' equity. Bankruptcy Warning The Company has disclosed that if it does not complete the sale, it will not have sufficient funds to retire the restructured Senior Notes when they become due. "In this event, we would likely be required to consider liquidation alternatives, including the liquidation of our business under bankruptcy protection," the Company said. BRICKMAN GROUP: S&P Revises Outlook to Negative; CCR at 'B' ----------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Brickman Group Holdings Inc. to negative from stable. "At the same time, we affirmed the corporate credit rating at 'B', and affirmed the issue-level ratings. Our issue-level rating on the company's senior secured debt facilities is 'B+'. The recovery rating is '2', indicating our expectation of substantial (70% to 90%) recovery in the event of a payment default. Our issue-level rating on the company's senior unsecured notes is 'CCC+'. The recovery rating is '6', indicating our expectation of negligible (0 to 10%) recovery in the event of a payment default," S&P related. "The revised outlook reflects the potential for thin covenant cushion under the company's total leverage covenant in the next 12 months," said Standard & Poor's credit analyst Stephanie Harter. "The speculative-grade ratings on Brickman reflect our view that the company's financial profile is highly leveraged, largely based on its aggressive financial policies, including multiple leveraged recapitalizations that have left its capital structure highly leveraged and its cash flow measures thin. Our weak business risk assessment incorporates our assessment of the company's narrow business focus, vulnerability to changes in weather and the economy, and our opinion that the sector exhibits low barriers to entry, especially at the local level. These weaknesses notwithstanding, we believe the company benefits from a decent position within the highly fragmented commercial landscape maintenance service market," S&P added. BRIDGEVIEW AEROSOL: Committee Has Figliulo for Probe vs. Insiders ----------------------------------------------------------------- Judge Pamela S. Hollis of the U.S. Bankruptcy for the Northern District of Illinois has authorized the Official Committee of Unsecured Creditors of Bridgeview Aerosol, LLC, to retain the law firm of Figliulo & Silverman, P.C., as special counsel to investigate the insider causes of action. The Court has authorized the Committee to pursue certain insider causes of action. The Committee's request for standing is in conjunction with a Global Settlement Motion between the Debtor, Wells Fargo Bank, N.A., and the Committee. Subject to approval of the Global Settlement, the Bank has consented to paying up to $25,000 directly to Special Counsel for the investigative phase of Special Counsel's engagement. At the present time, no agreement has been made with respect to any services to be performed by Special Counsel beyond investigating the Insider Causes of Action, including prosecution of such litigation. The Committee requests that Special Counsel be employed because in the event the investigative phase reveals that it would be in the best interest of the estate, the Special Counsel would pursue the Insider Causes of Action on a contingent fee basis, which primary counsel for the Committee is unable and unwilling to do. In the event prosecution is warranted, the Committee will file a supplemental request to amend the employment of Special Counsel. The professional services that will be required of Special Counsel in the Chapter 11 Case are as follows: (a) To assist the Committee in analyzing and developing the insider causes of action; (b) To take discovery on the insider causes of action; and (c) To consult with the Committee and the Bank and determine whether prosecuting the insider causes of action is warranted. Michael K. Desmond, a shareholder of Figliulo & Silverman, states that the Special Counsel is a "disinterested person," as that term is defined in Section 101(14) of the Bankruptcy Code and the Special Counsel holds or represents no interests adverse to this estate. Figliulo & Silverman has agreed to provide legal services to the Committee at these hourly rates: Jim Figliulo, Esq. $450 per hour Michael K. Desmond, Esq. $375 per hour Associates $250-$275 per hour Paralegal $95 per hour The primary attorneys in charge of the engagement are: James R. Figliulo, Esq. Michael K. Desmond, Esq. FIGLIULO AND SILVERMAN, P.C. 10 S. La Salle Street, Suite 3600 Chicago, Illinois 60603 Tel: (312) 251-4600 Fax: (312) 251-4610 E-mail: jfigliulo@fslegal.com mdesmond@fslegal.com About Bridgeview Aerosol Bridgeview, Illinois-based Bridgeview Aerosol, LLC, provides manufactures, packages and distributes household cleaning and automotive aerosol products. Affiliate AeroNuevo owns the real property on which BVA operates. USAerosols is the parent company of BVA and AeroNuevo. Bridgeview Aerosol and its affiliates filed for Chapter 11 protection (Bankr. N.D. Ill. Lead Case No. 09-41021) on Oct. 30, 2009. Steven B. Towbin, Esq., at Shaw Gussis et al., assists the Debtors in their restructuring efforts. Bridgeview Aerosol estimated $10 million to $50 million in assets and debts as of the Petition Date. Adam P. Silverman, Esq., and Henry B. Merens, Esq., at Adelman & Gettleman, Ltd., represents the Official Committee of Unsecured Creditors. On November 19, 2009, William T. Neary, the U.S. Trustee for Region 10, amended the appointment of the Official Committee of Unsecured Creditors. The Committee now consist of (i) Ball Aerosol & Speciality Container; (ii) Black Flag Brands LLC; (iii) Pennock Company; (iv) Diversified CPC International; (v) Laser Tool Inc.; (vi) Berry Plastics Corporation; and (vii) Batavia Container, Inc. CARBONE COS: Panel's Suit Against Dwyer Firm Goes to Trial ---------------------------------------------------------- The lawsuit commenced by the Official Committee of Unsecured Creditors in the bankruptcy cases of Carbone Companies, Inc., and Carbone Properties, LLC, to recoup $96,546.47 in payments made by the Debtors to the law firm of Dwyer, Cambre, & Suffern will proceed to trial according to a ruling by Bankruptcy Judge Charles M. Caldwell. The Committee alleges that one or both of the Debtors transferred the funds to Dwyer within the two year period prior to the filing of the Debtors' bankruptcy petitions at a time when the Debtors were insolvent. The Committee also alleges that the Debtors did not receive reasonably equivalent value for the alleged transfers, or alternatively, that the transfers were made with the actual intent to hinder, delay, or defraud creditors. The Amended Complaint claims both actual fraudulent transfer and constructive fraudulent transfer. The Court granted the Defendant's motion to dismiss the actual fraudulent transfer claim but denied its motion with respect to the constructive fraudulent transfer claim, saying the firm failed to meet its burden of demonstrating the absence of a genuine dispute of material fact as to that claim. The case is The Official Committee of Unsecured Creditors of the Debtors, Carbone Companies, Inc. and Carbone Properties, LLC, v. Dwyer, Cambre & Suffern, Adv. Proc. No. 10-1288 (Bankr. N.D. Ohio). A copy of the Court's Sept. 1, 2011 Memorandum Opinion and Order is available at http://is.gd/lrTx6qfrom Leagle.com. About Carbone Companies Cleveland, Ohio-based Carbone Companies Inc. dba R.P. Carbone Company, provides construction management services. Carbone Cos. and Carbone Properties, LLC filed for Chapter 11 relief (Bankr. N.D. Ohio Case Nos. 08-16786 and 08-16788) on Sept. 4, 2008. Judge Randolph Baxter presides over the case. Harry W. Greenfield, Esq., at Buckley King, P.A., represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, each listed assets of between $10 million and $50 million, and debts of between $10 million to $50 million. When the Debtors filed for bankruptcy, two other affiliates, Rancho Manana Ventures, LLC and Carbone Properties of Audubon, LLC had pending bankruptcy cases filed in other districts. Based in Cave Creek, Ariz., Rancho Manana Ventures, LLC filed for Chapter 11 relief (D. Ariz. Case No. 08-10441) on Aug. 13, 2008. Thomas E. Littler, Esq., at Warnicke & Littler, P.L.C., represents Rancho Manana as counsel. It estimated assets between $1 million and $10 million, and debts between $10 million and $50 million. The U.S. Trustee told the Court that as there has not been a sufficient showing of creditor interest, a committee of unsecured creditors has not been appointed in Rancho Manana's bankruptcy case. Based in New Orleans, La., Carbone Properties of Audubon, LLC filed for Chapter 11 relief on Dec. 12, 2007 (Bankr. E.D. La. 07-12470). Douglas S. Draper, Esq., at Heller, Draper, Hayden, Patrick & Horn, L.L.C., represents the Debtor as counsel. When the Debtor filed for protection from its creditors, it estimated assets between $1 million and $10 million, and debts between $10 million and $50 million. CARTER'S GROVE: Exclusive Solicitation Period Extended to Oct. 11 ----------------------------------------------------------------- The Hon. Stephen C. St. John of the U.S. Bankruptcy Court for the Eastern District of Virginia has approved a stipulation between Carter's Grove, LLC, and The Colonial Williamsburg Foundation (CWF), AVN Air LLC (AVN) and Sotheby's Inc. on an extension of the period under which the Debtor may exclusively solicit acceptances of its Chapter 11 plan. CWF, AVN and Sotheby's consent to a 60-day extension of the Debtor's 180-day period through and including Oct. 11, 2011, during which it may exclusively solicit acceptances of the Plan, and will not oppose the Debtor's request of the Court to extend this 180-day period by an additional 60 days without prejudice to seek further extensions upon notice and hearing. The Debtor is represented by: Robert S. Westermann, Esq. HIRSCHLER FLEISCHER, P.C. 2100 East Cary Street Richmond, Virginia 23223 Tel: (804) 771-9500 Fax: (804) 644-0957 E-mail: rwestermann@hf-law.com The Colonial Williamsburg Foundation is represented by: Tara L. Elgie, Esq. HUNTON & WILLIAMS LLP Riverfront Plaza, East Tower, 951 E. Byrd Street Richmond, Virginia 23219 Tel: (804) 788-8200 Fax: (804) 788-8218 Sotheby's Inc. is represented by: John A. Trocki, III, Esq. MORRISON & FOERSTER LLP 1650 Tysons Blvd., Suite 200 McLean, Virginia 22102 Tel: (703) 760-7712 Fax: (703) 760-7777 E-mail: jtrocki@mofo.com AVN Air, LLC, is represented by: Alison Wickizer Toepp, Esq. REED SMITH LLP 901 East Byrd Street, Suite 1700 Richmond, Virginia 23219-4068 Phone: (804) 344-3436 Fax: (804) 344-3410 E-mail: atoepp@reedsmith.com About Carter's Grove San Francisco, California-based Carter's Grove, LLC, owns the historic Williamsburg, Virginia-area mansion named Carter's Grove. Halsey M. Minor owns the Company and bought the Carter's Grove mansion for $15.3 million in 2007, at the height of the real estate bubble. Carter's Grove filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 11-30554) on Feb. 14, 2011. Debra I. Grassgreen, Esq., at Pachulski, Stang, Ziehl, And Jones LLP, serves as the Debtor's bankruptcy counsel. In its schedules, the Debtor disclosed $21,156,417 in assets and $12,490,476 in liabilities. On Aug. 1, 2011, the U.S. Bankruptcy Court for the Northern District of California approved the transfer of the Chapter 11 case of Carter's Grove, LLC to the Bankruptcy Court for the Eastern District of Virginia, Newport News Division. CELL THERAPEUTICS: Annual Meeting Set for Nov. 11 ------------------------------------------------- The 2011 annual meeting of shareholders of Cell Therapeutics, Inc., has been scheduled for Nov. 11, 2011. The record date for the Annual Meeting has been set as the close of business on Sept. 28, 2011. Because the date of the Annual Meeting has been changed by more than 30 days from the anniversary of the Company's 2010 annual meeting of shareholders, the deadline for the submission of shareholder proposals for inclusion in the Company's proxy materials relating to the Annual Meeting in accordance with Rule 14a-8 under the Securities Exchange Act of 1934 will be the close of business on Sept. 14, 2011. To be eligible for inclusion in the Company's proxy materials, shareholder proposals must comply with the requirements of Rule 14a-8 and with the Company's second amended and restated bylaws. The deadline of Sept. 14, 2011, applies only to shareholder proposals that are eligible for inclusion in the Annual Meeting in accordance with Rule 14a-8. The deadline for the submission of all other shareholder proposals, as well as shareholder nomination of director candidates, to be brought before the Annual Meeting in accordance with Article II, Sections 15 and 16 of the Bylaws has already expired. About Cell Therapeutics Headquartered in Seattle, Washington, Cell Therapeutics, Inc. (NASDAQ and MTA: CTIC) -- http://www.CellTherapeutics.com/-- is a bi4opharmaceutical company committed to developing an integrated portfolio of oncology products aimed at making cancer more treatable. The Company reported a net loss of $82.64 million on $319,000 of revenue for the 12 months ended Dec. 31, 2010, compared with a net loss of $82.64 million on $80,000 of total revenue during the same period in 2009. The Company's balance sheet at March 31, 2011 showed $60.92 million in total assets, $43.11 million in total liabilities, $13.46 million in common stock purchase warrants and $4.35 million total shareholders' equity. Marcum LLP, in San Francisco, Calif., expressed substantial doubt about the Company's ability to continue as a going concern in its audit reports for the financial statements for 2009 and 2010. The independent auditors noted that the Company has incurred losses since its inception, and has a working capital deficiency of approximately $14.2 million at Dec. 31, 2010. CELL THERAPEUTICS: Has $4.8 Million Net Loss in July ---------------------------------------------------- Cell Therapeutics, Inc., provided the information pursuant to a request from the Italian securities regulatory authority, CONSOB, pursuant to Article 114, Section 5 of the Unified Financial Act, that the Company issue at the end of each month a press release providing a monthly update of certain information relating to the Company's management and financial situation. According to the Report, the Company incurred a net loss attributable to common shareholders of $4.84 million on $0 of net revenue for the month ended July 31, 2011. A full-text copy of the press release is available for free at http://is.gd/L6LWS8 About Cell Therapeutics Headquartered in Seattle, Washington, Cell Therapeutics, Inc. (NASDAQ and MTA: CTIC) -- http://www.CellTherapeutics.com/-- is a biopharmaceutical company committed to developing an integrated portfolio of oncology products aimed at making cancer more treatable. The Company reported a net loss of $82.64 million on $319,000 of revenue for the 12 months ended Dec. 31, 2010, compared with a net loss of $82.64 million on $80,000 of total revenue during the same period in 2009. The Company's balance sheet at March 31, 2011 showed $60.92 million in total assets, $43.11 million in total liabilities, $13.46 million in common stock purchase warrants and $4.35 million total shareholders' equity. Marcum LLP, in San Francisco, Calif., expressed substantial doubt about the Company's ability to continue as a going concern in its audit reports for the financial statements for 2009 and 2010. The independent auditors noted that the Company has incurred losses since its inception, and has a working capital deficiency of approximately $14.2 million at Dec. 31, 2010. CHIPPEWA COUNTY: S&P Puts BB Rating on $4MM Bonds on Watch Neg. --------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB' long-term rating on the Chippewa County Hospital Finance Authority, Mich.'s $4 million series 1997B hospital revenue bonds issued for Chippewa County War Memorial Hospital (War Memorial) on CreditWatch with negative implications. The CreditWatch placement reflects the impending refunding of the series 1997B bonds and War Memorial's remaining debt with a $21 million U.S. Department of Agriculture loan approved in April 2011. "The negative implications reflect War Memorial's continued decline in liquidity from already weak levels, as well as a sharp increase in debt from the purchase of a medical office and rehabilitation building," said Standard & Poor's credit analyst Avanti Paul. "Although management reports that the funds from the USDA loan will be available by the end of September 2011, if the series 1997B bonds are not refunded within the next three months we are highly likely to lower the rating to the 'B' category," S&P related. CONSECO FINANCE: App. Ct. Reverses Ruling in Travis County Suit --------------------------------------------------------------- Green Tree Servicing, LLC, as authorized servicing agent for Conseco Finance Servicing Corporation, appeals a post-answer default judgment rendered against it in a suit for ad valorem taxes assessed on 10 mobile homes by Travis County, the Austin Independent School District, the City of Austin, Austin Community College, Pflugerville Independent School District, Del Valle Independent School District, and Travis County Emergency Services District Nos. 2 and 11. In an Aug. 31, 2011 Memorandum Opinion, the Court of Appeals of Texas, Third District, in Austin, reversed the trial court's judgment and remanded the cause for a new trial, saying the trial court abused its discretion by failing to grant Green Tree's motion for new trial and by allowing it to be overruled by operation of law. The appellate case is, Green Tree Servicing, LLC, as authorized servicing agent for Conseco Finance Servicing Corporation, Appellant, v. Travis County, et al., Appellees, No. 03-10-00709-CV (Tex. App. Ct.). A copy of the appeals court ruling is available at http://is.gd/RYQhaKfrom Leagle.com. Headquartered in Carmel, Indiana, Conseco, Inc. (NYSE: CNO) -- http://www.conseco.com/-- is the holding company for a group of insurance companies operating throughout the United States that develop, market and administer supplemental health insurance, annuity, individual life insurance and other insurance products. The Company became the successor to Conseco Inc. (Old Conseco), in connection with the Company's bankruptcy reorganization which became effective on Sept. 20, 2003. CNO focuses on serving the senior and middle-income markets. The Company sells its products through three distribution channels: career agents, professional independent producers and direct marketing. CORELOGIC INC: S&P Affirms BB Corporate, Gives Negative Outlook --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on CoreLogic Inc., and revised the outlook to negative from stable. The outlook revision reflects the company's decision to evaluate options to enhance shareholder value, and the resulting uncertainty regarding the company's financial policies and financial profile. "Our corporate credit rating incorporates our expectation that CoreLogic's leadership position in key markets will support consistent profitability, and that leverage will remain in the 3x area, despite lower expected earnings in fiscal 2011," said Standard & Poor's analyst Martha Toll-Reed. "However, the company's recent decision to evaluate options to enhance shareholder value could jeopardize our assumptions," she added. CoreLogic is the surviving company from the June 2010 spin-off of First American Corp.'s financial services business. "With last-12-month revenues in excess of $1.5 billion, CoreLogic has operations in Business and Information Services (which includes mortgage origination and default management services) and Data and Analytics (which includes property and mortgage securities information, and credit solutions). CoreLogic's fair business risk profile reflects a strong position in fragmented markets, offset by significant customer concentration (the company's top 10 customers accounted for about 37% of 2010 revenues) and a limited track record as a standalone company. Barriers to entry, which include the investment and expertise CoreLogic requires to build the databases and analytics at the core of the company's solutions, support the company's market position," S&P stated. CoreLogic's significant financial risk profile reflects its vulnerability to economic and credit cycles, and diminished revenue and earnings growth expectations in fiscal 2011. CoreLogic has significant earnings exposure to mortgage origination and servicing activity, which the Mortgage Bankers Assn. expects will continue to decline in 2011. Revenues in the second quarter of 2011 were $409 million, down about 3% from the prior-year period (adjusted for divestitures and joint ventures). "We expect annual, adjusted EBITDA margins to remain in the low-20% area, with support from cost-containment actions and growth in the Data and Analytics segment. However, we expect the absolute level of EBITDA to decline due to weakness in the Business and Information Services segment. Adjusted debt to EBITDA was about 3x as of June 30, 2011," S&P noted. CREEKSIDE BANK: Closed; Georgia Commerce Bank Assumes All Deposits ------------------------------------------------------------------ Georgia Commerce Bank of Atlanta, Ga., acquired the banking operations, including all the deposits, of Patriot Bank of Georgia in Cumming, Ga., and CreekSide Bank of Woodstock, Ga. The two banks were closed on Friday, Sept. 2, 2011, by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Georgia Commerce Bank. Patriot Bank of Georgia had one branch, and CreekSide Bank had two branches. Due to the Labor Day holiday, the three branches of the two failed banks will reopen as branches of Georgia Commerce Bank on Tuesday, Sept. 6. Depositors of the two failed banks will automatically become depositors of Georgia Commerce Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. As of June 30, 2011, Patriot Bank of Georgia had around $150.8 million in total assets and $111.2 million in total deposits; and CreekSide Bank had total assets of $102.3 million and total deposits of $96.6 million. In addition to assuming all of the deposits of the two Georgia banks, Georgia Commerce Bank agreed to purchase essentially all of their assets. The FDIC and Georgia Commerce Bank entered into loss-share transactions on the failed banks' assets. The loss-share transaction for Patriot Bank of Georgia covers $136.2 million of its assets, and the loss-share transaction for CreekSide Bank covers $69.2 million of its assets. Georgia Commerce Bank will share in the losses on the asset pools covered under the loss- share agreements. The loss-share transactions are projected to maximize returns on the assets covered by keeping them in the private sector. The transactions also are expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html Customers with questions about the transaction should call the FDIC toll-free: for Patriot Bank of Georgia customers, 1-800-323- 6111, and for CreekSide Bank customers, 1-800-238-8209. Interested parties also can visit the FDIC's Web sites: for Patriot Bank of Georgia, http://www.fdic.gov/bank/individual/failed/patriot.html and for CreekSide Bank, http://www.fdic.gov/bank/individual/failed/creekside.html The FDIC estimates that the cost to the Deposit Insurance Fund for Patriot Bank of Georgia will be $44.4 million and for CreekSide Bank, $27.3 million. Compared to other alternatives, Georgia Commerce Bank's acquisition of the two institutions was the least costly resolution for the FDIC's DIF. The closings are the 69th and 70th FDIC-insured institutions to fail in the nation so far this year and the eighteenth and nineteenth in Georgia. The last FDIC-insured institution closed in the state was First Southern National Bank, Statesboro on Aug. 19, 2011. CROWNROCK LP: S&P Assigns 'CCC+' Corporate Credit Rating -------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'CCC+' corporate credit rating to Midland, Texas-based CrownRock LP. The outlook is developing. "At the same time, we assigned a 'CCC' issue rating to CrownRock's $150 million senior unsecured notes due 2016. We also assigned a '5' recovery rating to the notes, indicating our expectation of a modest (10% to 30%) recovery in the event of a payment default. The company used proceeds from the transaction to repay existing indebtedness and for general corporate purposes," S&P stated. "The ratings on CrownRock reflect its weak liquidity relative to projected spending, very aggressive capital spending required to hold onto its acreage, a small reserve and production base, a high percentage of risky undeveloped reserves, and reliance on one basin -- the Wolfberry region of the Permian Basin -- for its production growth and cash flows," said Standard & Poor's credit analyst Marc Bromberg. The ratings also reflect an oil-weighted reserve profile and competitive cost structure. "The developing outlook reflects the potential that we could raise or lower ratings depending on whether CrownRock is able to fund its capital spending program beyond the first half of 2012. We will look to reserve and production growth to assess the prospects for FFO and liquidity, given that internally generated cash flows and the borrowing base are closely tied to these measures. We think that CrownRock will need to generate at least $150 million in FFO in total in 2011 and 2012 to meet its capital spending plans through the end of 2012. We could lower the ratings if the company experiences production issues in the Wolfberry or if we deem liquidity to be unable to support future capital spending requirements," S&P stated. DIABETES AMERICA: Oct. 5 Hearing on Liquidating Plan ---------------------------------------------------- Diabetes America, Inc., filed with the U.S. Bankruptcy Court for the Southern District of Texas a Chapter 11 Plan of Liquidation and accompanying Disclosure Statement dated August 19, 2011. Under the Plan, the Debtor is selling substantially all of its operating assets. The Debtor has accepted an offer from EDG Partners Fund II, L.P. for $4,750,000 cash plus the assumption of up to $925,000 in certain postpetition accrued liabilities. The offer is subject to a court-approved bidding process that will determine the highest and best offer. Upon closing of the EDG Sale or an Alternative Sale, the sales proceeds and all Excluded Assets will be vested in the Liquidating Debtor and administered by an independent Plan Agent appointed by the Bankruptcy Court. An oversight committee appointed by the Unsecured Creditors Committee will be created to oversee the Plan Agent. Under the Plan, the Plan Agent will use the sales proceeds to satisfy Allowed Claims and Interests in accordance with the Bankruptcy Code. The Plan Agent will also be vested with authority to (i) take such actions necessary to liquidate the Liquidating Debtor's remaining assets; (ii) file claim objections; (iii) make distributions and take such other actions as provided for under the Plan; and (iv) prosecute causes of action owned by the Debtor's estate, including all claims and causes of action arising under the Bankruptcy Code. Once all distributions have been made, the Plan Agent will file a final tax return and dissolve the Liquidating Debtor. The classification of claims and interests under the Plan are: Administrative Claims To be paid in full in cash. Priority Tax Claims To be paid in full in cash. Class 1 Priority Non-Tax Claims To be paid in full in cash. Class 2 Metrobank Secured Claim To be paid in full in cash. Class 3 Other Secured Claims Holders of Class 3 Claims will be receive either (1) proceeds of any Collateral sold securing the Allowed Class 3 Claim after satisfaction of all superior liens; or (2) any unsold Collateral securing the Allowed Class 3 Claim. Class 4 Apelles Claim To the extent the Claim becomes an Allowed Secured Claim, Apelles will receive either proceeds of any Collateral sold under the Plan that secures the Apelles Claim after satisfaction of all superior liens or, any unsold Collateral securing the secured portion of the Apelles Claim. To the extent any portion of the Claim becomes an Allowed General Unsecured Claim, the claim will receive their pro rata treatment with holders of Allowed Class 5 Claims. Class 5 General Unsecured Claims Holders of Class 5 Claims will receive Available Cash pro rata to their allowed claims. Class 6 Subordinated Claims Holders of Class 6 Claims will receive a pro rata share of Available Cash up to the allowed amount of such Claim after payment of all Allowed Claims in the corresponding superior class. Class 7 Equity Interests Will be cancelled as of the Plan Effective Date Class 8 Subordinated Equity Will be cancelled as of the Interests Plan Effective Date A confirmation hearing before the Honorable Marvin Isgur has been scheduled for Oct. 5, 2011, at 10:00 a.m. The deadline for filing objections to confirmation of the Plan is Oct. 3, at 12:00 p.m. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/DIABETESAMERICA_Aug19DS.pdf About Diabetes America Houston, Texas-based Diabetes America, Inc., fka Diabetes Centers of America, Inc., operates a network of 17 centrally-managed medical clinics that provide comprehensive outpatient medical care, primarily to patients with Type 1, Type 2 and Gestational Diabetes. The company's clinics are located in Texas and Houston and generate 51,000 patient visits per year. Diabetes America filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Case No. 10-41521) on Dec. 21, 2010. H. Joseph Acosta, Esq., and Micheal W. Bishop, Esq., at Looper Reed & McGraw, P.C., in Dallas; and Joshua Walton Wolfshohl, Esq., at Porter Hedges, L.L.P., in Houston, represent the Debtor as bankruptcy counsel. Woodrock & Co. serves as investment banker. The Debtor estimated its assets and debts at $10 million to $50 million as of the Petition Date. Judy A. Robbins, the U.S. Trustee for Region 7, appointed three members to the Official Committee of Unsecured Creditors in Diabetes America's Chapter 11 case. The Committee has tapped Butler, Snow, O'Mara, Stevens & Cannada, PLLC, as its counsel. DOMINGO VILLAS: Case Summary & 16 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Domingo Villas Inc. 11292 Los Alamitos Boulevard Los Alamitos, CA 90720 Bankruptcy Case No.: 11-22391 Chapter 11 Petition Date: September 1, 2011 Court: U.S. Bankruptcy Court Central District of California (Santa Ana) Judge: Robert N. Kwan Debtor's Counsel: William M. Burd, Esq. BURD & NAYLOR 200 W. Santa Ana Boulevard, Suite 400 Santa Ana, CA 92701 Fax: (714) 708-3949 E-mail: wmburd@burd-naylor.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 16 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/cacb11-22391.pdf The petition was signed by Dave Chamberlain, president. DREIER LLP: Reaches Settlement With 360 Networks ------------------------------------------------ Brendan Pierson at New York Law Journal reports that telecommunications company 360 Networks and a representative of its creditors have settled their claims against the estate of defunct law firm Dreier LLP, whose founder, Marc S. Dreier, pleaded guilty in 2009 to running a massive Ponzi scheme. 360 Networks had retained Dreier LLP as its counsel while it was in bankruptcy. According to the report, part of the firm's role was to hold money recovered from preference actions in escrow. After Mr. Dreier's arrest, it was revealed that no money was held in escrow. The newly reorganized 360 Networks filed a claim against Dreier LLP's estate for the amount that should have been in its account-more than $38 million. A court-appointed representative of 360 Networks' creditors filed a claim for over $85 million. The report says Sheila M. Gowan of Diamond McCarthy, the trustee in charge of liquidating the estate, in turn filed a preference action against 360 Networks, which received over $11 million from Dreier accounts in the 90 days before the firm's bankruptcy. Last week, Ms. Gowan filed a motion in the U.S. Bankruptcy Court for the Southern District, In re: Chapter 11 Dreier LLP, 08-15051, asking for court approval of a settlement of both claims. Under the settlement, 360 Networks will drop its claim against the estate and will pay the trustee $2.875 million in cash. The report notes the 360 Networks' creditors' representative will reduce his claim against the estate to $45 million. Ms. Gowan said in the motion that unsecured creditors, like the representative, were expected to receive around 10 cents on the dollar. 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. DYLANS DANCE HALL: Files for Chapter 11, to Reopen Soon ------------------------------------------------------- Dylans Dance Hall, Inc., owner of the Dylan's Dance Hall & Saloon in Boulder Highway, Las Vegas, Nevada, filed a Chapter 11 petition (Bankr. D. Nev. Case No. 11-24092) in its hometown on Sept. 1, 2011. The Company disclosed liabilities of about $210,000. Its only assets are the trade name "Dylan's Dance Hall & Saloon" and it s business license for a restaurant, amusement machines and valet parking. The value of those assets are "unknown", according to the schedules. Steve Green at Vegas Inc. reports that Dylan's has been closed about 45 days for remodeling but will reopen soon with new management, according to owner Bob Lannon. Mr. Lannon, Vegas Inc. relates, said the bankruptcy was caused by declining business and the need to install a new management team and that he's confident business will improve once the club is up and running again. "That's the plan, to get the business back on its feet," he said, adding Dylan's has key attributes needed for success as a nightclub. In its bankruptcy filing, signed by Mr. Lannon, Dylan's listed losses of $75,000 so far this year, more than $67,000 in 2010 and more than $88,000 in 2009. The Debtor is represented by: Roger P. Croteau, Esq. 720 S 4th Street Suite 202 Las Vegas, NV 89101 Tel: (702) 254-7775 Fax: (702) 228-7719 E-mail: croteaulaw@croteaulaw.com EAGLE CROSSROADS: Case Summary & 19 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Eagle Crossroads Center, LLC 12100 Wilshire Boulevard, Suite 500 Los Angeles, CA 90025 Bankruptcy Case No.: 11-23749 Chapter 11 Petition Date: August 30, 2011 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Bruce T. Beesley Debtor's Counsel: Thomas H. Fell, Esq. GORDON SILVER 3960 Howard Hughes Parkway, 9th Floor Las Vegas, NV 89169 Tel: (702) 796-5555 Fax: (702) 369-2666 E-mail: tfell@gordonsilver.com Estimated Assets: $50,000,001 to $100,000,000 Estimated Debts: $50,000,001 to $100,000,000 The petition was signed by Brian Good, authorized agent. Debtor's List of 19 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Bank of America, N.A. 6464 Decatur $50,921,902 Trustee - Morgan Stanley Capital Boulevard, I, et al N. Las Vegas, NV 100 N. City Parkway, Suite 1750 Las Vegas, NV 89106 City of North Las Vegas Services Provided $8,471 2829 Fort Sumter Drive N. Las Vegas, NV 89030 Malco Nevada, Inc. Services Provided $6,345 5051 E. Orangethorpe Avenue, #E-259 Anaheim, CA 92807 Dapper Properties Services Provided $5,540 NV Energy Services Provided $2,802 Ace Fire Systems, Inc. Services Provided $2,753 Blue & Green Services Provided $2,374 Simple Waste Solutions Services Provided $1,002 Precision Plumbing, Inc. Services Provided $900 Republic Services Services Provided $864 Liberty Mechanical Service Services Provided $675 Santoro, Driggs et. al. Services Provided $649 Vegas Valley Electrical Service Services Provided $478 City of North Las Vegas - FIRE Services Provided $449 Enviro Safe Pest Control Services Provided $220 Stanley Convergent Security Services Provided $156 Solutions Henderson Lock & Key Services Provided $107 Southwest Gas Corporation Services Provided $83 Century Link Services Provided $64 EAST WILLIAMSBURG: Case Summary & 3 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: East Williamsburg LLC 846 St. Johns Place, 2nd Floor Brooklyn, NY 11216 Bankruptcy Case No.: 11-47503 Chapter 11 Petition Date: August 31, 2011 Court: U.S. Bankruptcy Court Eastern District of New York (Brooklyn) Judge: Carla E. Craig Debtor's Counsel: Richard Tanenbaum, Esq. 44 Court Street, Suite 917 Brooklyn, NY 11201 Tel: (347) 291-1776 Fax: (866) 413-9205 E-mail: nybankruptcy@gmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's three largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/nyeb11-47503.pdf The petition was signed by Solomon Steinlauf, president. EDWARD YODER: Monarch Ex-CEO Has $2.7MM in Assets, $4MM in Debts ---------------------------------------------------------------- Tom Shean at the Virginian-Pilot reports that Edward O. Yoder, former president and CEO of Monarch Mortgage, has submitted a list of $4 million in liabilities, including $2.5 million of unsecured claims involving a real estate project, as part of a bankruptcy petition he filed in July. According to the report, Mr. Yoder also filed a schedule of assets amounting to $2.74 million with his Chapter 11 filing in U.S. Bankruptcy Court in Norfolk. These included a Virginia Beach home valued at slightly more than $1 million and investments, savings, household items and other personal property valued at $1.7 million, according to the Aug. 22 filing. Mr. Yoder sought bankruptcy protection from creditors in July, just days before two lawsuits brought by Bank of Hampton Roads were scheduled to go to trial in Virginia Beach Circuit Court. The Norfolk-based bank said it was seeking to recover loans made to a Manteo, N.C., development partnership that Yoder personally guaranteed. The suits have since been moved to the bankruptcy court. The report relates that the amount of unsecured claims against Mr. Yoder was reduced to $2.89 million from $5.29 million because two bank loans were counted twice in his initial filing, said Kevin J. Funk, his lawyer. The Virginian-Pilot says Mark France, Mr. Yoder's co-debtor on the Bank of Hampton Roads loans to Down East Equity Partnership, also provided personal guarantees on the loans, according to court filings. France, of Manteo, is managing partner and has a 50 percent stake in Down East. The loans were made by Gateway Bank & Trust Co., which Hampton Roads Bankshares Inc. acquired in late 2008 and folded into Bank of Hampton Roads. U.S. Trustee Objection to Counsel The report notes, separately, the Office of the U.S. Trustee, an arm of the Justice Department that oversees administration of bankruptcy cases, objected to a law firm's request to continue representing Mr. Yoder in his bankruptcy. The firm, DuretteCrump of Richmond, also represents Yoder, France and the Down East partnership in the suits brought by Bank of Hampton Roads. Mr. Yoder's estate and France appear to have claims against Down East, and Yoder's estate appears to have a separate claim against the bank, Down East and perhaps France, the U.S. Trustee said in its objection. Because of the apparent conflict, DuretteCrump cannot act completely in Yoder's interest while it also represents France and Down East, it contended. Edward O. Yoder sought Chapter 11 bankruptcy protection (Bankr. E.D. Va. Case No. 11-73305) on July 21, 2011. ELITE PHARMACEUTICALS: Amends Certificates of Designations ---------------------------------------------------------- Elite Pharmaceuticals, Inc., filed Company Certificates of Correction with the Secretary of State for the State of Delaware to correct certain inaccuracies included in the Amended Certificate of Designations on its Series B and Series C Convertible Preferred Stock, filed with the Secretary of State of the State of Delaware on Aug. 12, 2011. The Holders of a majority of the shares of the Preferred Stock voting as one class had consented to the said amendments. Section 3(a)(iv) of the Certificate as originally filed with the Secretary of State on Aug. 12, 2011, provides that "if the funds are not legally available for the payment of dividends and the Equity Condition relating to an effective Conversion Shares Registration Statement has been waived by such Holder, as to such Holder only, in unregistered shares of Common Stock which will be valued solely for that purpose at 95% of the VWAPs for the 20 consecutive Trading Days ending on the Trading Day that is immediately prior to the Dividend Payment Date." Section 3(a)(iv) as corrected does not require the waiver by the Holder of the Equity Condition relating to an effective Conversion Shares Registration Statement for the corporation to satisfy its dividend obligations by issuing unregistered shares. Section 3(a)(v) of the Certificate as originally filed with the Secretary of State on Aug. 12, 2011, provides that "if funds are not available for the payment of dividends and the Equity Conditions have not been met during the 20 consecutive Trading Days immediately prior to the applicable Dividend Payment Date, then those dividends will accrue to the next Dividend Payment Date." Section 3(a)(v) as corrected eliminates this provision in its entirety. Section 3(a) of the Certificate as originally filed with the Secretary of State on Aug. 12, 2011, provides that "the Corporation will promptly notify the Holders at any time the Corporation will become unable, as the case may be, to legally pay cash dividends. If at any time the Corporation has the right to pay dividends in cash or Common Stock, the Corporation must provide the Holder with at least 20 Trading Days' notice of its election to pay a regularly scheduled dividend in Common Stock. Section 3 (a) as corrected eliminates this obligation on the part of the Corporation. A full-text copy of the Certificate of Correction is available for free at http://is.gd/Ud700f About Elite Pharmaceuticals Northvale, New Jersey-based Elite Pharmaceuticals, Inc., is a specialty pharmaceutical company principally engaged in the development and manufacture of oral, controlled-release products, using proprietary technology and the development and manufacture of generic pharmaceuticals. The Company has one product, Phentermine 37.5mg tablets, currently being sold commercially. Demetrius & Company, L.L.C., in Wayne, New Jersey, expressed substantial doubt about Elite Pharmaceuticals' ability to continue as a going concern. The independent auditors noted that the Company has experienced significant losses resulting in a working capital deficiency and shareholders' deficit. The Company reported a net loss of $13.6 million on $4.3 million of revenues for the fiscal year ended March 31, 2011, compared with a net loss of $8.1 million on $3.3 million of revenues for the fiscal year ended March 31, 2010. The Company's balance sheet at June 30, 2011, showed $11.49 million in total assets, $50.33 million in total liabilities, and a $38.84 million total stockholders' deficit. EVERGREEN ENERGY: Inks $750,000 Settlement with Insurance Carrier ----------------------------------------------------------------- Evergreen Energy Inc. filed a suit against its directors and officers insurance carrier in Evergreen Energy Inc. v. ACE American Insurance Company, United States District Court for the District of Colorado, Case No. 1:11CV01700, in an attempt to secure coverage related to the Cook and Bitonti litigation which was recently settled. On Aug. 30, 2011, the Company and the director and officers insurance carrier entered into a Settlement Agreement pursuant to which the parties agreed to enter into a release agreement, the carrier will pay the Company $750,000 within 10 business days of execution of the release, and upon payment in full, the Company will dismiss the suit against the carrier. The parties anticipate entering into the release agreement on Sept. 1, 2011. 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. FAIRCHILD MANOR: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Fairchild Manor Nursing Home, LLC 2302 Wehrle Drive Williamsville, NY 14221 Bankruptcy Case No.: 11-13013 Chapter 11 Petition Date: August 30, 2011 Court: U.S. Bankruptcy Court Western District of New York (Buffalo) Judge: Michael J. Kaplan Debtor's Counsel: Arthur G. Baumeister, Jr., Esq. AMIGONE, SANCHEZ, MATTREY & MARSHALL LLP 1300 Main Place Tower 350 Main Street Buffalo, NY 14202 Tel: (716) 852-1300 E-mail: abaumeister@amigonesanchez.com Scheduled Assets: $578,977 Scheduled Debts: $7,144,722 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/nywb11-13013.pdf The petition was signed by Marc Korn, managing member. FENTURA FINANCIAL: Randy Hicks Appointed to Board of Directors -------------------------------------------------------------- Fentura Financial, Inc., on Aug. 25, 2011, announced the appointment of Dr. Randy D. Hicks to the Board of Directors of the Company as well as the wholly owned subsidiary, The State Bank. Dr. Hicks is a graduate of Kalamazoo College and the Michigan State University College of Human Medicine. He is the founder and President of Regional Medical Imaging, P.C., which provides radiology services to mid-Michigan area hospitals, clinics, physicians, and individuals. He has been a keynote speaker at various health care conferences and has published several medical research papers. Having also achieved a Masters degree in Business Administration, Dr. Hicks has also been involved in various commercial real estate ventures throughout his career. About Fentura Financial Based in Fenton, Michigan, Fentura Financial, Inc., is a registered bank holding company, owns and controls The State Bank, Fenton, Michigan, and West Michigan Community Bank, Hudsonville, Michigan, both state nonmember banks, and two nonbank subsidiaries. Fentura Financial shares are traded over the counter under the FETM trading symbol. As reported in the Troubled Company Reporter on March 22, 2010, Crowe Horwath LLP, in Grand Rapids, Mich., expressed substantial doubt about the Company's ability to continue as a going concern, following its 2009 results. The independent auditors noted that the Company incurred net losses in 2009 and 2008, primarily from higher provisions for loan losses, and non-compliance with the higher capital requirements of the Consent Orders. Fentura Financial, Inc., entered into a Written Agreement with the Federal Reserve Bank of Chicago on Nov. 4, 2010. Among other things, the Written Agreement requires that the Company obtain the approval of the FRB prior to paying a dividend; requires that the Company obtain the approval of the FRB prior to making any distribution of interest, principal, or other sums on subordinated debentures or trust preferred securities; prohibits the Company from purchasing or redeeming any shares of its stock without the prior written approval of the FRB; requires the submission of a written capital plan by Jan. 3, 2011, and; requires the Company to submit cash flow projections for the Company to the FRB on a quarterly basis. The Company reported a net loss of $5.38 million on $13.87 million of interest income for the year ended Dec. 31, 2010, compared with a net loss of $16.98 million on $16.24 million of interest income during the prior year. The Company's balance sheet at June 30, 2011, showed $303.33 million in total assets, $286.92 million in total liabilities and $16.41 million in total shareholders' equity. FIDDLER'S CREEK: Secured $6.3MM of DIP Financing for August ----------------------------------------------------------- Judge K. Rodney May of the U.S. Bankruptcy Court for the Middle District of Florida entered its ninth interim order allowing Fiddler's Creek, LLC, et al., to obtain secured postpetition financing of up to $6,305,659, when combined with the borrowings earlier authorized by the Court, from Gulf Bay Capital, Inc., the DIP Lender, for the four-week period from August 1 to 30, 2011. In their original request for DIP financing, the Debtors sought authority to borrow up to $25,000,000. At the most recent hearing, the Court only considered the Debtors' request to borrow up to approximately $6,305,659 in accordance with the ninth interim budget. About Fiddler's Creek Fiddler's Creek, LLC, and its affiliates each owns, operates or is otherwise affiliated with the premier, fully integrated, master planned residential community known as "Fiddler's Creek" in southwestern Florida. Fiddler's Creek is located in Collier County, Florida, approximately 12 miles southeast of the city of Naples and six miles north of Marco Island. The Fiddler's Creek development is comprised of nearly 4,000 zoned acres of prime land in Naples, Florida, and is planned for and capable of accommodating up to 6,000 residences upon projected build-out, which is estimated to be in 2020. Fiddler's Creek contains five distinctive neighborhoods known as: Fiddler's Creek, Veneta, Aviamar, Marsh Cove and Meadow Run. Fiddler's Creek filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 10-03846) on Feb. 23, 2010. Paul J. Battista, Esq., Heather L. Harmon, Esq., and Mariaelena Gayo-Guitian, Esq., at Genovese Joblove & Battista, P.A., Miami; Bart A. Houston, Esq., at Kopelowitz Ostrow; and Mark Woodward, Esq., serve as counsel to the Debtors. Judge Alexander L. Paskay presides over the case. The Company estimated assets and debts at $100 million to $500 million. Paul S. Singerman, Esq., Jordi Guso, Esq., and Debi Evans Galler, Esq., at Berger Singerman P.A., represent the Official Unsecured Creditors Committee as counsel. At the end of August 2011, Fiddler's Creek LLC was given formal approval for its Chapter 11 plan following an eight-day confirmation hearing. The Plan incorporates agreements with the official creditors' committee, an ad hoc group of homeowners, and two lenders, Regions Bank NA and Fifth Third Bank. FIRST MARINER: Request for Continued NASDAQ Listing Denied ---------------------------------------------------------- First Mariner Bancorp announced that it received notice from the NASDAQ Stock Market that its request for continued listing on NASDAQ was denied. NASDAQ's determination followed an appeal by the Company of NASDAQ's initial delisting determination to a NASDAQ Listing Qualifications Panel on Aug. 25, 2011. NASDAQ's determination was based on the Company's failure to comply with: (1) NASDAQ Listing Rule 5450(b), which requires maintenance of a minimum of $2.5 million in shareholders' equity; and (2) NASDAQ Listing Rule 5450(a)(1), which requires maintenance of a minimum bid price of $1.00 per share. The Company said the delisting from NASDAQ in no way affects its daily operations or any of its branches. Effective Sept. 1, 2011, 1st Mariner Bancorp's stock will begin trading on the Over The Counter Bulletin Board. Quotations for the Company's stock can be found under the symbol FMAR.OB. Shareholders may contact Paul Susie, the Company's Chief Financial Officer, with any questions regarding the move to the OTC. 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. FIRST STREET: Case Summary & 12 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: First Street Holdings NV, LLC 6114 La Salle Avenue, #471 Oakland, CA 94611 Bankruptcy Case No.: 11-49300 Chapter 11 Petition Date: August 30, 2011 Court: U.S. Bankruptcy Court Northern District of California (Oakland) Judge: Roger L. Efremsky Debtor's Counsel: Iain A. Macdonald, Esq. MACDONALD AND ASSOCIATES 221 Sansome Street, Third Floor San Francisco, CA 94104 Tel: (415) 362-0449 E-mail: iain@macdonaldlawsf.com Estimated Assets: $50,000,001 to $100,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Graham Seel, SVP of CMR Capital, LLC, manager. Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- Lydian SF Holdings, LLC 11-49301 08/30/11 Debtor's List of 12 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Orrick, Herrington & Sutcliffe LLP Legal Fees $56,970 P.O. Box 39000 San Francisco, CA 94139 Reuben & Junius, LLP Legal Fees $45,921 1 Bush Street, Suite 600 San Francisco, CA 94104 Stein & Lubin LLP Legal Fees $38,788 600 Montgomery Street, 14th Floor Heller Manus Architects Architect Fees $35,000 Eastdil Secured Broker Services, Marketing Costs $23,846 Inc. Reimbursement Bank of America Bank Fees $8,762 Reuben & Alter, LLP Legal Fees $3,225 Colliers International Marketing Costs $3,000 Reimbursement Wendel, Rosen, Black & Dean LLP Legal Fees $610 CT Corp. Registered Agent Fees $254 San Francisco Tax Collector Real Property Taxes $119 City of San Francisco Filing Fees $58 FLEXERA SOFTWARE: Cut to 'B' Corporate by S&P; Outlook Stable ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Schaumburg, Ill.-based Flexera Software Inc. to 'B' from 'B+' and removed it from CreditWatch, where it was placed with negative implications on July 20, 2011. The outlook is stable. "At the same, we assigned a 'B' issue-level rating and a '3' recovery rating to Flexera's proposed $25 million senior secured revolving credit facility due 2016 and $230 million first-lien term loan due 2017. The '3' recovery rating indicates our expectations for meaningful (50%-70%) recovery for lenders in the event of a payment default," S&P related. "We also assigned a 'CCC+' issue-level rating and a '6' recovery rating to Flexera's proposed $100 million second-lien term loan due 2018. The '6' recovery rating indicates our expectations for negligible (0%-10%) recovery for lenders in the event of a payment default. The company intends to use the proceeds to partly finance its acquisition by Ontario Teachers' Pension Plan and to repay existing debt," S&P said. "The rating on Flexera reflects our view that the company's highly leveraged financial profile and its private-equity ownership structure are likely to preclude sustained deleveraging," said Standard & Poor's credit analyst Andrew Chang. "We consider Flexera's business risk profile weak, reflecting its narrow product focus and modest scale." "Nevertheless," added Mr. Chang, "we expect that the company's diverse customer base and good revenue visibility will support moderate revenue growth and consistent free cash flow generation in the near term." GREAT ATLANTIC & PACIFIC: Has Until Jan. 16 to File Plan -------------------------------------------------------- The Hon. Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York extended the exclusive periods of the Great Atlantic & Pacific Tea Company Inc. and its debtor- affiliates to: a) file a Chapter 11 plan through and including Jan. 16, 2012; and b) solicit acceptances of that plan until March 16, 2012. About Great Atlantic & Pacific Founded in 1859, Montvale, New Jersey-based Great Atlantic & Pacific is a supermarket retailer, operating under a variety of well-known trade names, or "banners" across the mid-Atlantic and Northeastern United States. Before filing for bankruptcy in 2010, A&P operated 429 stores in 8 states and the District of Columbia under the following trade names: A&P, Waldbaum's, Pathmark, Pathmark Sav-a-Center, Best Cellars, The Food Emporium, Super Foodmart, Super Fresh and Food Basics. A&P had 41,000 employees prior to the bankruptcy filing. A&P and its affiliates filed Chapter 11 petitions (Bankr. S.D.N.Y. Case No. 10-24549) on Dec. 12, 2010 in White Plains, New York. In its petition, A&P reported total assets of $2.5 billion and liabilities of $3.2 billion as of Sept. 11, 2010. Paul M. Basta, Esq., James H.M. Sprayregen, Esq., and Ray C. Schrock, Esq., at Kirkland & Ellis, LLP, in New York, and James J. Mazza, Jr., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, serve as counsel to the Debtors. Kurtzman Carson Consultants LLC is the claims and notice agent. Lazard Freres & Co. LLC is the financial advisor. Huron Consulting Group is the management consultant. Dennis F. Dunne, Esq., Matthew S. Barr, Esq., and Abhilash M. Raval, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represent the Official Committee of Unsecured Creditors. A&P obtained court approval for a new contract with C&S Wholesale Grocers Inc., its principal supplier. The contract is designed to save A&P $50 million a year when the supermarket operator emerges from Chapter 11 reorganization. A&P sold postpetition 12 Super-Fresh stores in the Baltimore- Washington area for $37.83 million, plus the value of inventory. Thirteen other locations didn't attract buyers at auction and were closed mid-July 2011. GGIS INSURANCE: Case Summary & 7 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: GGIS Insurance Services, Inc. dba Guardian General Insurance Services 2550 N. Hollywood Way, Suite 120 Burbank, CA 91505 Bankruptcy Case No.: 11-47233 Chapter 11 Petition Date: August 31, 2011 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Sheri Bluebond Debtor's Counsel: Michael T. Stoller, Esq. MICHAEL T. STOLLER, APC 23945 Calabasas Road, Suite 104 Calabasas, CA 91302 Fax: (818) 226-4044 Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's seven largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/cacb11-47233.pdf The petition was signed by Richard J. Acunto, chief executive officer. HARRISBURG, PA: Fate Now In The Hands Of Pennsylvania's Governor ---------------------------------------------------------------- Dow Jones' DBR Small Cap reports that having rejected Mayor Linda Thompson's financial recovery plan, the Harrisburg, Pa., city council has opened the door for Pennsylvania Gov. Tom Corbett to make good on his threat to have the state take over the finances of its capital city, which faces $300 million in debt over a failed trash incinerator project. American Bankruptcy Institute reports that Pennsylvania's capital of Harrisburg on Thursday rejected a rescue plan designed to address its debt crisis in a move that could prompt a state takeover of its finances. About Harrisburg, Pennsylvania The city of Harrisburg is coping with debt related to a failed revamp of an incinerator. The outstanding principal on the Incinerator debt is $288 million. Total principal and interest on this debt would amount to approximately $458 million. Debt service payments on the total incinerator debt are $20 million per year. Of this total, Dauphin County, Pennsylvania, is responsible for roughly $10 million and Harrisburg is responsible for the other $10 million. The city is guarantor on 100% of the $288 million Incinerator debt. The City Council of Harrisburg, Pennsylvania, voted 5-2 on September 28 to seek professional advice on bankruptcy or state oversight. Harrisburg needed state aid to avoid default on $3.3 million of bond payments this month. The city has missed about $8 million in debt-service payments this year on bonds issued in connection with a trash-to-energy incinerator. The city owes another $40 million by the end of the year, and was sued by its home county Dauphin County; bond insurer Assured Guaranty Municipal Corp., a unit of Assured Guaranty Ltd.; and bond trustees TD Bank and M&T Bank Corp. over $19 million in skipped bond payments. HERITAGE CONSOLIDATED: Had Approval for Cash Use for August ----------------------------------------------------------- Heritage Consolidated, LLC, and Heritage Standard Corporation, together with the Official Committee of Unsecured Creditors, entered into a stipulation extending the Debtors' use of cash collateral through Aug. 31, 2011. About Heritage Consolidated Heritage Consolidated LLC is a privately held company whose core operations consist of exploration for, and acquisition, production, and sale of, crude oil and natural gas. Heritage Consolidated filed a Chapter 11 petition (Bankr. N.D. Tex. Case No. 10-36484) on Sept. 14, 2010, in Dallas, Texas. Its affiliate, Heritage Standard Corporation, also filed for Chapter 11 protection (Bankr. N.D. Tex. Case No. 10-36485). Kevin D. McCullough, Esq., in Dallas, Texas, serves as counsel to the Debtors. The Debtors each estimated assets and debts of $10 million to $50 million. HORIZN VILLAGE: Court Approves Gordon Silver as Bankr. Counsel -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Nevada authorized Horizon Village Square LLC, Ten Saints LLC, Beltway One Development Group LLC, and Nigro HQ LLC to employ Gordon Silver as bankruptcy counsel. According to the Troubled Company Reporter on July 28, 2011, Gordon Silver has represented the Debtors in connection with financial restructuring efforts since June 2010. Since June 2010, Beltway One has paid Gordon Silver $19,194.37 for legal services rendered in connection with its restructuring. The firm is also currently holding $24,011 as retainer. Gordon Silver's hourly rates are: $130 to $175 per hour for paraprofessionals, $185 to $350 per hour for associates, and $455 to $700 per hour for shareholders Mr. Gordon attests that Gordon Silver and its shareholders and associates do not hold or represent any interest adverse to the Debtors' estate, and Gordon Silver and its shareholders and associates are "disinterested persons" within the meaning of Sections 101(14) and 327 of the Bankruptcy Code, as modified by Section 1107(b). The firm can be reached at: Gerald M. Gordon, ESQ. Talitha Gray Kozlowski, Esq. Candace C. Clark, Esq. GORDON SILVER 3960 Howard Hughes Pkwy., 9th Floor Las Vegas, Nevada 89169 Telephone: (702) 796-5555 Facsimile: (702) 369-2666 E-mail: ggordon@gordonsilver.com tgray@gordonsilver.com cclark@gordonsilver.com About Horizon Village Square et al. Four related Las Vegas, Nevada-based entities sought Chapter 11 bankruptcy protection on July 13, 2011. The businesses are owned or managed by local business people and firms, including Todd Nigro, Nigro Development LLC, a Nigro family trust and other investors. Horizon Village Square LLC (Bankr. D. Nev. Case No. 11-21034) owns the Vons-anchored Horizon Village Square Shopping Center near I- 515 and Horizon Drive in Henderson. The property includes five retail buildings with nearly 43,000 square feet of space. Ten Saints LLC (Bankr. D. Nev. Case No. 11-21028) owns the 134- room Hampton Inn & Suites at St. Rose Parkway and Seven Hills Drive in Henderson. Beltway One Development Group LLC (Bankr. D. Nev. Case No. 11- 21026) owns the Desert Canyon Business Park at Russell Road and the Las Vegas Beltway. It has two buildings and 15 acres. Nigro HQ LLC (Bankr. D. Nev. Case No. 11-21014) owns an office building at 9115 W. Russell Road occupied by Bank of George, Infinity Plus LLC and Nigro Construction Inc. Todd Nigro said the four bankruptcies were caused by threatened foreclosures -- typically related to Wells Fargo Bank demanding payments to keep loan-to-value ratios at specified levels. Judge Mike K. Nakagawa presides over the cases. Lawyers at Gordon Silver serve as the Debtors' bankruptcy counsel. The bankruptcy petitions estimated assets and debts from $1 million to $10 million each for Nigro HQ; and from $10 million to $50 million in both assets and debts for Horizon Village, Ten Saints and Beltway One. A fifth-related business, Russell Boulder LLC, filed for bankruptcy (Bankr. D. Nev. Case No. 10-29724) on Oct. 19, 2010. It owns the 600-suite Siena Suites extended stay property at Boulder Highway and Russell Road. HOVENSA LLC: S&P Lowers Rating on First-Lien Facility to 'B' ------------------------------------------------------------ Standard & Poor's Ratings Services lowered its debt rating on HOVENSA LLC's $400 million first-lien revolving credit facility due 2011/2012 and its $355.7 million in tax-exempt debt issued by the U.S. Virgin Islands and the Virgin Islands Public Finance Authority to 'B' from 'BB-'. The outlook remains negative. The '1' recovery rating, which remains unchanged, indicates that lenders can expect a very high (90%-100%) recovery if a payment default occurs. HOVENSA is a 350,000 barrel per day (bpd) crude oil refiner located in St. Croix. It is jointly owned by Hess Corp. (BBB/Stable/--) and Petroleos de Venezuela S.A. (PDVSA; B+/Stable/--). The project has completed a reduction in capacity to 350,000 bpd from 500,000 bpd to improve operational efficiency and reliability, which could in turn increase margins by up to a dollar per barrel. "However, we believe HOVENSA's financial profile will continue to be pressured by low margins and negative project cash flows through at least 2013," S&P related. "Our expectation assumes a weak refining environment for facilities processing Brent-priced crude, high fuel and operating expenses, and large capital spending requirements," said Standard & Poor's credit analyst Mark Habib. With negative cash flow and internal liquidity short of requirements, HOVENSA's stand-alone profile is consistent with a low 'B' or high 'CCC' category rating. However, HOVENSA's project rating reflects an expectation of support from its parents over the short term due to its moderately strategic importance. "The negative outlook reflects our expectation of negative project cash flow through 2013 due to a weak refining environment and the facility's cost structure, and HOVENSA's reduced liquidity as cash balances have fallen, the revolver matures, and parent support requirements increase. We anticipate that poor market conditions combined with high levels of required capital spending will keep the project's debt service coverage below zero through 2013," S&P stated. "HOVENSA benefits from our assumption that the project's parents are likely to assist it with liquidity over the short term. If parent support is scaled back or withdrawn, or turns out to be inadequate due to worse-than-expected refining margins, we could lower the rating. If HOVENSA can weather the current downturn and rebuild its liquidity position to pre-2008 levels, we could revise the negative outlook to stable or raise the rating," S&P added. IMH FINANCIAL: $50-Mil. Funding Paves Way for Recovery, Growth -------------------------------------------------------------- IMH Financial Corporation sent a letter to its shareholders regarding the Company's recent events and initiatives undertaken. The Company views the completion of the $50 million financing with NWRA Ventures I, LLC, and the hiring of New World Realty Advisors, LLC, as its turning point. The Company said it now has the capital and the enhanced resources to set a course for recovery and growth. The Company has five major strategic goals to pursue as it moves forward: (1) To achieve greater operating efficiency through a reduction of operating expenses and other costs. (2) To increase revenues through the deployment of capital into accretive investments. (3) To enhance value in our legacy assets that it sees as having significant potential, through repositioning or development. (4) To dispose of non-income producing loans and REO assets that do not have near-term prospects for appreciation and sell them based on terms that are more reflective of the Company's new financial strength and negotiating power. (5) To pursue liquidity for the Company's shareholders, both in the form of dividend distributions and through the creation of liquidity in the Company's shares. A full-text copy of the Letter is available for free at: http://is.gd/gMKl3s About IMH Financial Scottsdale, Ariz.-based IMH Financial Corporation was formed from the conversion of IMH Secured Loan Fund, LLC, or the Fund, a Delaware limited liability company, on June 18, 2010. The conversion was effected following a consent solicitation process pursuant to which approval was obtained from a majority of the members of the Fund to effect the Conversion Transactions and involved (i) the conversion of the Fund from a Delaware limited liability company into a Delaware corporation named IMH Financial Corporation, and (ii) the acquisition by the Company of all of the outstanding shares of the manager of the Fund Investors Mortgage Holdings Inc., or the Manager, as well as all of the outstanding membership interests of a related entity, IMH Holdings LLC, or Holdings on June 18, 2010. The Company is a commercial real estate lender based in the southwest United States with over 12 years of experience in many facets of the real estate investment process, including origination, underwriting, documentation, servicing, construction, enforcement, development, marketing, and disposition. The Company focuses on a niche segment of the real estate market that it believes is underserved by community, regional and national banks: high yield, short-term, senior secured real estate mortgage loans. The intense level of underwriting analysis required in this segment necessitates personnel and expertise that many community banks lack, yet the requisite localized market knowledge of the underwriting process and the size of the loans the Company seeks often precludes the regional and community banks from efficiently entering this market. "Given the current state of the real estate and credit markets, we believe the realization of full recovery of the cost basis in our assets is unlikely to occur in a reasonable time frame and may not occur at all, and we may be required to liquidate portions of our assets for liquidity purposes at a price significantly below the initial cost basis or potentially below current carrying values. If we are not able to liquidate a sufficient portion of our assets or access credit under the credit facility currently under negotiation, there may be substantial doubt about our ability to continue as a going concern. Nevertheless, we believe that our cash and cash equivalents, coupled with liquidity derived from the credit facility currently under negotiation and the disposition of certain of the loans and real estate held for sale, will allow us to fund current operations over the next 12 months," the Company said in its Form 10-Q for the quarter ended Sept. 30, 2010. The Company reported a net loss of $117.04 million on $3.75 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $74.47 million on $22.52 million of total revenue during the prior year. The Company's balance sheet at June 30, 2011, showed $264.97 million in total assets, $76.15 million in total liabilities and $188.82 million in total stockholders' equity. As reported by the TCR on April 20, 2011, BDO USA, LLP, in Phoenix, Arizona, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses and is not currently generating sufficient cash flows to sustain operations INNER CITY: Senior Lenders Want to Restrict Use of Cash Collateral ------------------------------------------------------------------ Creditors who signed the involuntary Chapter 11 petition for Inner City Media Corp., namely 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., ask the Court for entry of an order conditioning the use of cash proceeds generated from operations and contained in certain deposit accounts by Inner City and its affiliates. The Petitioning Creditors tells the Court that the Alleged Debtors and the chairman of their ultimate parent company are continuing a pattern of reckless and disturbing behavior that forced the Petitioning Creditors to file involuntary chapter 11 petitions against the Alleged Debtors. This course of conduct, according to the Petitioning Creditors, has been orchestrated by Pierre "Pepe" Sutton, the chairman of the Alleged Debtors' parent company, Inner City Broadcasting Corporation (ICBC). They claim that Mr. Sutton has used the Alleged Debtors to enrich himself and continues to use his power over them to frustrate a necessary and appropriate restructuring of the Alleged Debtors' financial obligations. According to the creditors, Mr. Sutton and ICBC continue to exercise untoward control over the Alleged Debtors, forcing the Alleged Debtors to put the interests of ICBC ahead of the Alleged Debtors' creditors, to whom the Alleged Debtors owe fiduciary duties given the Alleged Debtors' obvious insolvency. This allegedly includes using ICBC funds to pay hefty retainers to the Alleged Debtors' newly hired restructuring counsel. The Petitioning Creditors believe that so long as Mr. Sutton remains in a position of power over the Alleged Debtors, the Senior Lenders' interests in the Alleged Debtors are imperiled. To prevent further harm to the Senior Lenders' rights until this Court can determine whether orders for relief should be entered, the Senior Lenders request certain restrictions on the Alleged Debtors' use of cash proceeds of the Senior Lenders' collateral. Specifically, the Senior Lenders request that until an order for relief is entered, the Alleged Debtors be prohibited from making: -- any transfer of cash directly to, or for the benefit of, ICBC or any officer, director or equityholder of ICBC; -- any payment of the fees or expenses of any professional retained in whole or in part by ICBC or who is performing work for, or for the benefit of, ICBC; -- any expenditure on account of salary, life insurance policies or other fringe benefits for Pepe Sutton, particularly until it can be determined whether Mr. Sutton's extremely high compensation is justifiable, and whether the Alleged Debtors - as opposed to ICBC - obtain any benefit for the expense; -- any expenditure on life insurance policies for any employee of the Alleged Debtors; -- any expenditure for corporate communications specialists providing services regarding the involuntary chapter 11 cases; -- any payment of the fees or expenses of Akin Gump and Rothschild Inc. given that they have already been paid substantial retainers of $800,000 in the aggregate, which were paid by ICBC, not the Alleged Debtors; and -- any reimbursement for executive employees of the Alleged Debtors for travel, parking, gas or other travel and entertainment expenses until such time as the Alleged Debtors have demonstrated that they have appropriate internal controls and policies in place with respect to such reimbursements. The Senior Lenders recognize that during the so-called "gap period" -- the time between the filing of an involuntary petition and the entry of an order for relief -- an alleged debtor is generally permitted to use its property. However, an alleged debtor's conduct must comport with its fiduciary duties, and must not destroy value or dissipate assets to benefit equity holders at the expense of creditors. The protective provisions sought by the Senior Lenders are necessary to ensure that the Alleged Debtors do not spend excessively or dissipate assets which constitute the collateral of the Senior Lenders, and are appropriate under the circumstances. Show Evidence, Inner City Says In response to the Petitioning Creditors' motion, Inner City tells the Court that the Motion should be denied because the Petitioners will be unable to carry their high evidentiary burden to demonstrate that the Alleged Debtors, or any officers, directors or shareholders, are absconding with assets, disposing of assets at less than their fair market value or dismantling the business to the detriment of creditors. The Petitioners offer scant evidence of any wrongdoing and are not entitled to the extraordinary relief that they seek, according to the Alleged Debtors. According to the Alleged Debtors, the Petitioners commenced these involuntary proceedings as part of an orchestrated strategy to impose a balance sheet restructuring on the Alleged Debtors, which was properly rejected following due deliberation by the Alleged Debtors in consultation with their legal and financial advisors. In lieu of returning to the bargaining table, the Petitioners took the extraordinary relief of sweeping virtually all of the Debtors' cash from approximately $21 million to slightly above $1 million, forcing the Alleged Debtors prematurely towards chapter 11; seeking the appointment of a chapter 11 trustee or examiner with expanded powers; and attempting to limit the Alleged Debtors' ability to pay, among other things, the salary and benefits of the CEO. Through the Motion, the Petitioners also seek to choke off the Alleged Debtors' ability to pay the restructuring professionals they require in order to respond to the onslaught of legal proceedings initiated by the Petitioners and to prepare the Alleged Debtors for a smooth landing into chapter 11. The Alleged Debtors' say their management and restructuring professionals have been focused on attempting to preserve the value of the businesses and to prepare an appropriate response, consistent with their respective fiduciary and professional obligations, to return the restructuring negotiations to the conference room rather than destroy the Alleged Debtors through unnecessary and unjustified scorched-earth litigation. Furthermore, the Alleged Debtors say they have prepared a 3-week budget which will limit expenditures during the gap period to allow the Alleged Debtors to preserve going concern value and enable the Alleged Debtors to adequately prepare for Chapter 11 and the contested matters which have been initiated and threatened by the Petitioners. The Alleged Debtors are represented by: Ira S. Dizengoff, Esq. Abid Qureshi, Esq. Akin Gump Strauss Hauer & Feld LLP One Bryant Park New York, New York 10036 Phone: (212) 872-1000 Fax: (212) 872-1002 E-mail: idizengoff@akingump.com aqureshi@akingump.com 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 About Inner City 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. 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. INT'L COMMERCIAL: Board Appoints Richard Ransom as President ------------------------------------------------------------ International Commercial Television Inc.'s Board of Directors has appointed Richard Ransom as President of the Company, effective Aug. 29, 2011. Mr. Ransom currently serves as Chief Financial Officer of the Company, and will retain that position in addition to his duties as President. Mr. Ransom will report to Kelvin Claney, chief executive officer of the Company. About International Commercial Bainbridge Island, Wash.-based International Commercial Television Inc. was organized under the laws of the State of Nevada on June 25, 1998. The Company sells various consumer products. The products are primarily marketed and sold throughout the United States and internationally via infomercials. The Company's balance sheet at June 30, 2011, showed $704,645 in total assets, $1.72 million in total liabilities, and a $1.01 million total shareholders' deficit. The Company reported a net loss of $795,913 on $3.90 million of net sales for the year ended Dec. 31, 2010, compared with a net loss of $241,135 on $5.89 million of net sales during the prior year. As reported by the TCR on April 2, 2011, EisnerAmper, LLP, in Edison, New Jersey, noted that the Company's recurring losses from operations and negative cash flows from operations raise substantial doubt about the Company's ability to continue as a going concern. The Company generated negative cash flows from operating activities in the past fiscal year of approximately $319,000, and the Company, for the most part, has experienced recurring losses from operations. The Company had negative working capital of approximately $879,000 and an accumulated deficit of approximately $6,218,000 as of Dec. 31, 2010. The Company said there is no guarantee that it will be successful in bringing its products into the traditional retail environment. If the Company is unsuccessful in achieving this goal, the Company will be required to raise additional capital to meet its working capital needs. If the Company is unsuccessful in completing additional financings, it will not be able to meet its working capital needs or execute its business plan. In such case the Company will assess all available alternatives including a sale of its assets or merger, the suspension of operations and possibly liquidation, auction, bankruptcy, or other measures. INTERTAPE POLYMER: S&P Raises Corporate Credit Rating to 'B-' ------------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Montreal, Canada-based Intertape Polymer Group Inc. to 'B-' from 'CCC+'. The outlook is stable. "The upgrade reflects improvement in the company's operating performance and our expectation that Intertape will be able to at least maintain its improved operating performance in the future," said Standard & Poor's credit analyst Paul Kurias. Gradually improving sales volumes, a more favorable pricing environment, and increasing benefits from the company's cost- reduction efforts are contributing to EBITDA improvement. The stronger operating performance has benefited liquidity. "Leverage credit metrics have also benefited from the upswing in performance, but we expect that free cash flow generation will be modest, constraining the company's ability to reduce debt," Mr. Kurias added. Standard & Poor's also raised its issue-level rating on subordinated notes issued by subsidiary company Intertape Polymer U.S. Inc., to 'CCC' from 'CCC-'. The recovery rating on the notes remains unchanged at '6', indicating the expectation for negligible (0%-10%) recovery in the event of a payment default. The ratings on Intertape Polymer Group Inc. reflect the company's highly leveraged financial profile and vulnerable business position in a niche market for tapes in North America. With annual sales of about $770 million as of June 30, 2011, Intertape manufactures mainly tapes and films for end markets including industrial, packaging, housing and construction, and the relatively stable food and consumer durables industries. The company's end markets are steadily improving but remain susceptible for the most part to industrial cycles and economic downturns. Standard & Poor's expectations for stable-to-improving operating performance are based on its outlook for continued modest economic growth in 2011 and 2012. "Nonetheless, we expect that the company's operating performance will remain vulnerable to volatility in input costs including polyethylene and polypropylene resins and to economic slowdowns and competitive pressures," Mr. Kurias said. IRON MINING: Files for Reorganization Relief Under Chapter 11 ------------------------------------------------------------- Iron Mining Group, Inc., with the authorization of its board of directors, has filed a petition for reorganization relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York, case number 11-14032. This strategic action will give the Company the time required to fulfill existing iron ore sales contracts and generate resulting profits to repay its senior secured bridge loans, positioning itself for long-term success. The Company arrived at this action as a consequence of a dispute with its senior secured lender, Globe Specialty Metals GSM. In December 2010, IMG entered into a $3.3 million Senior Secured Notes bridge loan financing transaction with GSM through its subsidiary, MST Financial, LLC, and other investors. The financing transaction was structured as an interim step toward additional follow-on equity financing leading to an acquisition of controlling interest in IMG by GSM or one of its affiliates, as reflected in term sheets negotiated at the closing. Despite the way the multi-stage transaction was outlined and structured prior to closing the Notes, and the parties' discussions and negotiations at that time, IMG believes GSM failed to complete the anticipated follow-on financing with IMG prior to the June 16, 2011 maturity date of the Notes as originally negotiated. MST, the administrative and collateral agent of the Notes, also restricted IMG's ability to execute its business, including completing new financings, acquisitions or iron ore trading transactions. Based in part on their restrictive actions in connection with the Notes financing and failure to complete the anticipated follow-on financing, IMG filed a Complaint against GSM, MST and others on July 15, 2011 in the Supreme Court of the State of New York, County of New York (Index No. 651936/2011) detailing the circumstances supporting its claims for Fraud/Fraudulent Inducement, Negligent Misrepresentation, Breach of Fiduciary Duty, Breach of Covenant of Good Faith and Fair Dealing, Breach of Royalty Agreement, Unfair Competition, Promissory Estoppel, Unjust Enrichment and Prima Facie Tort. "IMG remains committed to the uncompromising protection of its secured and unsecured debt-holders, and its shareholders," said CEO, Garrett K. Krause, "and we are confident that the above course of action will allow us to protect our assets while fulfilling current iron ore export contracts to repay all debt obligations. In spite of the above failed GSM follow-on financing, IMG's three wholly-owned subsidiaries, which are not part of the Chapter 11, continue to conduct business in the ordinary course, including proceeding with delivery on two contracts to deliver 480,000 metric tons of iron ore through December 31, 2011. IMG has many strengths upon which to build a solid plan of reorganization and successfully execute its existing business opportunities for the repayment of its outstanding obligations and the ongoing creation of shareholder value." About Iron Mining Group Iron Mining Group, Inc. is a diversified global iron ore company with its initial focus in Latin America. The Company has entered this marketplace at a time when the largest iron ore customer, China, seeks to alter the status quo by shifting power away from the traditional iron ore producers. IMG has global iron ore trading group and direct mining operations in Chile and Mexico, where it owns a number of iron ore projects in various stages of development. LOCAL INSIGHT: Plan Outline Hearing Scheduled for Sept. 20 ---------------------------------------------------------- The Hon. Kevin Gross for the U.S. Bankruptcy Court for the District of Delaware will convene a hearing on Sept. 20, 2011, at 10:00 a.m. (prevailing Eastern Time), to consider adequacy of the Disclosure Statement explaining Local Insight Media Holdings, Inc.'s Chapter 11 Plan. Objections, if any, are due Sept. 12, at 4:00 p.m. The Court set Sept. 20, as the voting record date for determining holders of claims that are eligible to vote on the Plan. Copies of the Disclosure Statement and Plan may be obtained for free by: i) contacting Kurtzman Carson Consultants LLC, the claims and solicitation agent by telephone at (877) 660-6697 within the U.S. or Canada or, outside of the U.S. or Canada, at (732) 645-4114; or by writing to the Debtor c/o Kurtzman Carson Consultants LLC, 2335 Alaska Avenue, El Segundo, California; or ii) downloading the documents (excluding the ballots) from the Debtors' restructuring website at http://www.kccllc.net/localinsight. About Local Insight Wilmington, Delaware-based Local Insight Media Holdings, Inc., is a publisher of print and online yellow page directories in the United States. Local Insight, along with affiliates, including Local Insight Regatta Holdings, Inc., filed for Chapter 11 bankruptcy protection on (Bankr. D. Del. Lead Case No. 10-13677) on Nov. 17, 2010. Richard M. Cieri, Esq., Christopher J. Marcus, Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis LLP, serve as the Debtors' bankruptcy counsel. Curtis A. Hehn, Esq., Laura Davis Jones, Esq., and Michael Seidl, Esq., at Pachulski Stang Ziehl & Jones LLP, are the Debtors' co-counsel. The Debtors' investment banker and financial advisor is Lazard Freres & Co. LLC. The Debtors' independent auditor is Deloitte & Touche LLP. The Debtors' interim management and restructuring advisors are Alvarez & Marsal North America, LLC, and Avarez & Marsal Private Equity Performance Improvement Group, LLC. Kurtzman Carson Consultants LLC is the Debtors' notice and claims agent. Local Insight Media Holdings estimated assets of less than $50,000 and liabilities of $100 million to $500 million in its Chapter 11 petition. Local Insight Regatta reported consolidated assets of $796,270,000 against consolidated debts of $669,612,000 as of Sept. 30, 2010, according to its Form 10-Q filed with the Securities and Exchange Commission. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP as its counsel; Morris, Nichols, Arsht & Tunnel LLP as Delaware co-counsel; Houlihan Lokey Howard & Zukin Capital Inc. as its financial advisor and investment banker; and Mesirow Financial Consulting LLC as its forensic accountant and litigation advisor. LOCAL INSIGHT: Stipulation on Investigation-Related Fees Approved ----------------------------------------------------------------- The Hon. Kevin Gross for the U.S. Bankruptcy Court for the District of Delaware approved the stipulation regarding investigation-related fees and expenses. The stipulation was entered among the Debtor Local Insight Media Holdings, Inc., the prepetition agent and the DIP agent; Mesirow Financial Consulting, LLC; Houlihan Lokey Howard & Zukin Capital Inc.; and Morris, Nichols, Arsht & Tunnel LLP. About Local Insight Wilmington, Delaware-based Local Insight Media Holdings, Inc., is a publisher of print and online yellow page directories in the United States. Local Insight, along with affiliates, including Local Insight Regatta Holdings, Inc., filed for Chapter 11 bankruptcy protection on (Bankr. D. Del. Lead Case No. 10-13677) on Nov. 17, 2010. Richard M. Cieri, Esq., Christopher J. Marcus, Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis LLP, serve as the Debtors' bankruptcy counsel. Curtis A. Hehn, Esq., Laura Davis Jones, Esq., and Michael Seidl, Esq., at Pachulski Stang Ziehl & Jones LLP, are the Debtors' co-counsel. The Debtors' investment banker and financial advisor is Lazard Freres & Co. LLC. The Debtors' independent auditor is Deloitte & Touche LLP. The Debtors' interim management and restructuring advisors are Alvarez & Marsal North America, LLC, and Avarez & Marsal Private Equity Performance Improvement Group, LLC. Kurtzman Carson Consultants LLC is the Debtors' notice and claims agent. Local Insight Media Holdings estimated assets of less than $50,000 and liabilities of $100 million to $500 million in its Chapter 11 petition. Local Insight Regatta reported consolidated assets of $796,270,000 against consolidated debts of $669,612,000 as of Sept. 30, 2010, according to its Form 10-Q filed with the Securities and Exchange Commission. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP as its counsel; Morris, Nichols, Arsht & Tunnel LLP as Delaware co-counsel; Houlihan Lokey Howard & Zukin Capital Inc. as its financial advisor and investment banker; and Mesirow Financial Consulting LLC as its forensic accountant and litigation advisor. LOCATION BASED TECHNOLOGIES: 3 Directors Elected at Annual Meeting ------------------------------------------------------------------ Location Based Technologies, Inc., held its Annual Shareholders' Meeting on Aug. 30, 2011. Desiree Mejia, David Morse and Joseph Scalisi were elected to serve as directors until the next annual meeting. About Location Based Technologies Headquartered in Irvine, Calif., Location Based Technologies, Inc. (OTC BB: LBAS) -- http://www.locationbasedtech.com/-- designs, develops, and sells personal, pet, and vehicle locator devices and services. As reported in the Troubled Company Reporter on Dec. 22, 2010, Comiskey & Company, in Denver, Colo., expressed substantial doubt about Location Based Technologies' ability to continue as a going concern following its results for the fiscal year ended August 31, 2010. The independent auditors noted that the Company has incurred recurring losses since inception and has an accumulated deficit in excess of $28,800,000 and a working capital deficit in excess of $5,900,000. The Company's balance sheet at May 31, 2011, showed $1.77 million in total assets, $7.70 million in total liabilities and a $5.93 million in total stockholders' deficit. LYDIAN SF: Case Summary & 2 Largest Unsecured Creditors ------------------------------------------------------- Debtor: Lydian SF Holdings, LLC 6114 La Salle Avenue, #471 Oakland, CA 94611 Bankruptcy Case No.: 11-49301 Chapter 11 Petition Date: August 30, 2011 Court: U.S. Bankruptcy Court Northern District of California (Oakland) Judge: Edward D. Jellen Debtor's Counsel: Iain A. Macdonald, Esq. MACDONALD AND ASSOCIATES 221 Sansome Street, Third Floor San Francisco, CA 94104 Tel: (415) 362-0449 E-mail: iain@macdonaldlawsf.com Estimated Assets: $50,000,001 to $100,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Graham Seel, SVP of CMR Capital, LLC, manager. Affiliate filing separate Chapter 11 petition: Entity Case No. Petition Date ------ -------- ------------- First Street Holdings NV, LLC 11-49300 08/30/11 Debtor's List of two Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Franchise Tax Board Annual Fees $3,948 P.O. Box 942857 Sacramento, CA 94257-0631 CT Corp. Registered Agent $250 P.O. Box 4349 Services Carol Stream, IL 60197-4349 LYMAN LUMBER: Bankruptcy Judge Gives OK to Auction Assets --------------------------------------------------------- Dow Jones' DBR Small Cap reports that Lyman Lumber Co. got court permission to sell itself at an Oct. 5 bankruptcy auction despite creditor concerns over the company's quickly spiraling first bid price. 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. M WAIKIKI: Files for Bankruptcy to Fend Off Marriott ---------------------------------------------------- M Waikiki LLC has filed for Chapter 11 bankruptcy protection. The filing allows the company to reorganize in an effort to protect its investment in The MODERN Honolulu, a 353-room luxury hotel. The filing follows a court decision granting a temporary restraining order to allow Marriott International Inc. to resume its operation of the property. The Chapter 11 filing now allows M Waikiki ("Owner") to reaffirm the termination of the management agreement with Marriott and continue to employ new management at the property. M Waikiki LLC had installed new management this weekend at The MODERN Honolulu, formerly known as the Waikiki Edition. "We respectfully disagree with the court decision and remain confident that the Owner acted within its rights terminating its contract with Marriott," said William A. Brewer III, partner at Bickel & Brewer and lead counsel for Owner. "In any event, the Owner has filed for bankruptcy protection, which will permit it to continue the operation of the hotel under its present management with Modern Management Services." Modern Management Services was installed as the manager at the property on August 28, 2011. The hotel was renamed, guests were advised, and hundreds of hotel staff members were offered employment. New management remains in place. The ruling and reorganization announcement do not affect Owner's claims against Marriott, pursuant to which Owner seeks tens of millions of dollars in damages. "In our view, filing for bankruptcy protection is the only prudent option for protecting our investment in this asset," said Damian McKinney, principal of M Waikiki LLC. "We look forward to reorganizing as a new corporate entity, continuing the employment of a new management company, and making this a leading lifestyle hotel for guests and employees." About M Waikiki LLC M. Waikiki is a Hawaii limited liability company with its principal place of business located in San Diego, California. It is a special purpose entity, having approximately 75 indirect investors, which was formed to acquire the Hotel. M WAIKIKI: Marriott Says Owner Bankruptcy Self-Defeating -------------------------------------------------------- The filing by the owner of the Waikiki EDITION and its legal advisors of a bankruptcy proceeding to prevent Marriott International, Inc. from retaking management of the hotel is a self-defeating step that ultimately involves the destruction of significant value of the owner's asset, Marriott said. Ed Ryan, Marriott International's executive vice president and general counsel, said, "While we are astonished at such a self- destructive course of action, we of course respect the law and the fact that a bankruptcy filing freezes any other legal orders for the time being. It is clear that this was a desperate step by the owner and legal advisors to circumvent the New York court's order returning the hotel to our rightful management and control. They will obviously stop at nothing in the effort to escape from the contractual obligations they made to us when they signed the management agreement. "We will vigorously pursue tens of millions of dollars of claims for damages to the brand and our company in bankruptcy court over time. We understand the disappointment that our guests and employees feel about the current status of the Waikiki EDITION, and will strive to do all we can to help the transition to new plans." The company said its court filings would counter the continuous stream of false and misleading statements regarding its management of the hotel by the owner and its legal counsel. For example, inaccurate statements by the owner notwithstanding, occupancy rates at the Waikiki EDITION were 67 percent in July and were running in excess of 80 percent in August prior to the illegal raid and seizure of the hotel by the owner and its partner overnight last Sunday. A New York court ordered that management of the hotel should be returned to Marriott. Marriott said that guests holding reservations at the Waikiki EDITION could call Marriott Customer Care, at 1-800-559-9352 to receive more information and to change their reservations to other Marriott International hotels. About M Waikiki LLC M. Waikiki is a Hawaii limited liability company with its principal place of business located in San Diego, California. It is a special purpose entity, having approximately 75 indirect investors, which was formed to acquire the Hotel. M WAIKIKI: Voluntary Chapter 11 Case Summary -------------------------------------------- Debtor: M Waikiki LLC 12250 El Camino Real, Suite 220 San Diego, CA 92130 Bankruptcy Case No.: 11-02371 Chapter 11 Petition Date: August 31, 2011 Court: U.S. Bankruptcy Court District of Hawaii (Honolulu) Judge: Robert J. Faris Debtor's Counsel: Patrick J. Neligan, Esq. NELIGAN FOLEY LLP 325 N. St. Paul, Suite 3600 Dallas, TX 75201 Tel: (214) 840-5300 Fax: (214) 840-5301 E-mail: pneligan@neliganlaw.com - and - Simon Klevansky, Esq. KLEVANSKY PIPER, LLP Davies Pacific Center, Suite 1707 841 Bishop Street Honolulu, HI 96813 Tel: (808) 536-0200 Fax: (808) 237-5757 E-mail: sklevansky@kplawhawaii.com Estimated Assets: $100,000,001 to $500,000,000 Estimated Debts: $100,000,001 to $500,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Damian McKinney, manager of eRealty Fund, LLC, manager. MARCO POLO: Targets Credit Agricole Unit Over Ship Arrest --------------------------------------------------------- As widely reported, that Marco Polo Seatrade BV is asking the U.S. Bankruptcy Court in New York to hold Credit Agricole Corporate and Investment Bank in contempt and order sanctions against the lender. Evan Weinberger at Bankruptcy Law360 reports that Marco Polo Seatrade BV said Wednesday that a Credit Agricole SA unit must pay damages for holding one of the shipping company's largest vessels in a London port in violation of a Chapter 11 automatic stay. Law360 relates that in a contempt motion filed in New York bankruptcy court, Marco Polo says that Credit Agricole Corporate & Investment Bank -- the shipping company's largest lender -- had the M/T Monitron arrested in the Port of Coryton just prior to its Chapter 11 filing in July. 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 noted that the Debtors' assets and debt are both more than US$100 million and less than US$500 million. MOORE SORRENTO: May Use Wells Fargo Cash Collateral until Sep. 18 ----------------------------------------------------------------- As of the Petition Date, Moore Sorrento, LLC, was a borrower under those two certain Construction Loan Agreements dated November 7, 2007, between the Debtor, as borrower, and Wachovia Financial Services, Inc., as lender. Pursuant to the loan agreements, Wachovia made two loans to the Debtor to allow the Debtor to refinance its acquisition of a certain property and to fund construction of certain improvements to the Property. In connection with the Loans, the Debtor executed two notes for $35,244,000 and $6,500,000 in favor of Wachovia, a subsidiary of Wells Fargo Bank, N.A. Wells Fargo is the current holder and owner of the Loans, Notes and Secured Loan Documents. Under the Secured Loan Documents, the Debtor granted security interests in and liens on, among other things the Property and all improvements thereto, and all security deposits held under any leases and all rentals related to the Property. As of the Petition Date, Wells Fargo asserts perfected and senior priority liens on the Wells Fargo Collateral to secure payment of the Notes. Wells Fargo asserts that all cash and cash equivalents, deposit accounts or any other cash equivalents in the Debtor's possession, including the proceeds, products, offspring, rents or profits of the Wells Fargo Collateral constitute cash collateral of Wells Fargo within the meaning of Section 363 of the Bankruptcy Code. Accordingly, the Debtor sought and obtained permission, on an interim basis, from the U.S. Bankruptcy Court for the Northern District of Texas to use the Wells Fargo Cash Collateral pursuant to a budget to pay direct costs of operation in the ordinary course of the Debtor's business. A copy of the Cash Budget is available for free at: http://bankrupt.com/misc/MOORESORRENTO_InterimBudget.pdf The Court ruled that the Debtor's use of the Cash will be limited to the actual and necessary expenditures identified in the Cash Budget. Unless otherwise agreed to by Wells Fargo, no expenditures will exceed the amounts in the Cash Budget by more than 10% on any line item basis or 10% of the total monthly expenditures. The Court directed the Debtor to make all payments of quarterly fees due to the United States Trustee, and to retain all cash received by the Debtor in excess of expenditures authorized in the Cash Budget. The Debtor is prohibited from spending the Excess Cash without either the advance written consent of Wells Fargo or order from the Court authorizing the use. The Court granted Wells Fargo a replacement security interest in, and lien, to the extent not already included in or a part of the Wells Fargo Collateral, upon the right, title and interest in the prepetition Wells Fargo Collateral, and the property acquired by the Debtor after the Petition Date. Wells Fargo is also granted a super-priority administrative expense claim. As additional adequate protection, beginning with a payment due on September 11, 2011, the Debtor will make an adequate protection payment to Wells Fargo each month in an amount equal to the sum of the monthly interest payments required on both Notes, calculated at the non-default contract rates of interest set forth in the Notes. As further adequate protection, beginning with a payment due on September 11, 2011, the Debtor will deposit escrows for real estate taxes for $23,100 and insurance for $3,300, which amounts will be held by Wells Fargo in reserve accounts pending further order of the Court. The Debtor's authority to use cash collateral under the Interim Order will terminate on September 18, 2011. The final hearing on the Cash Collateral Motion will be held on September 12, 2011, at 2:00 p.m., Prevailing Central Time. About Moore Sorrento Hurst, Texas-based Moore Sorrento, LLC, owns real property located in Moore, Oklahoma, commonly known as the Shops at Moore, which the Company operates as a retail shopping center. The center's current 23 tenants offer various goods and services to retail customers. Moore Sorrento filed Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 11-44651) on Aug. 17, 2011. J. Robert Forshey, Esq., and Matthew G. Maben, Esq., at Forshey & Prostok, LLP, serve as the Debtor's counsel. Moore Sorrento estimated assets of up to $100 million and debts of up to $50 million as of the Chapter 11 filing. MOORE SORRENTO: Sec. 341 Creditors' Meeting Set for Sept. 21 ------------------------------------------------------------- The United States Trustee for Region 6 will hold a Meeting of Creditors pursuant to 11 U.S.C. Sec. 341 in the bankruptcy case of Moore Sorrento, LLC, on Sept. 21, 2011, at 10:30 a.m. The last day to file proofs of claim is Dec. 20, 2011. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. The 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. About Moore Sorrento Hurst, Texas-based Moore Sorrento, LLC, owns real property located in Moore, Oklahoma, commonly known as the Shops at Moore, which the Company operates as a retail shopping center. The center's current 23 tenants offer various goods and services to retail customers. Moore Sorrento filed Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 11-44651) on Aug. 17, 2011. J. Robert Forshey, Esq., and Matthew G. Maben, Esq., at Forshey & Prostok, LLP, serve as the Debtor's counsel. Moore Sorrento estimated assets of up to $100 million and debts of up to $50 million as of the Chapter 11 filing. MOORE SORRENTO: Targets Sept. 14 Schedules Filing ------------------------------------------------- Moore Sorrento, LLC, asks the U.S. Bankruptcy Court for the Northern District of Texas for an extension of time to file its schedule of assets and liabilities, schedule of executory contracts and unexpired leases, statement of financial affairs and list of equity security holders through and including September 14, 2011. J. Robert Forshey, Esq., at Forshey & Prostok, LLP, in Ft. Worth, Texas, contends that ample cause exists to grant the sought extension because the Debtor does not have any direct employees to complete the collection, review and assembly of information for the Schedules and Statements. He reminds the Court that the individuals that perform work for the Debtor are employed by third parties, including Wayne Meckley, CFO of the Debtor's property manager, Burk Collins & Co., Ltd. The meeting of creditors required by Section 341 of the Bankruptcy Code is currently scheduled for September 21, 2011. If the extension is granted, the Schedules and Statements will be file in advance of that meeting, with ample time being afforded to all creditors and parties-in-interest to review the Schedules and Statements prior to the meeting, Mr. Forshey asserts. About Moore Sorrento Hurst, Texas-based Moore Sorrento, LLC, owns real property located in Moore, Oklahoma, commonly known as the Shops at Moore, which the Company operates as a retail shopping center. The center's current 23 tenants offer various goods and services to retail customers. Moore Sorrento filed Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 11-44651) on Aug. 17, 2011. J. Robert Forshey, Esq., and Matthew G. Maben, Esq., at Forshey & Prostok, LLP, serve as the Debtor's counsel. Moore Sorrento estimated assets of up to $100 million and debts of up to $50 million as of the Chapter 11 filing. MOORE SORRENTO: Seeks to Hire Forshey & Prostok as Counsel ---------------------------------------------------------- Moore Sorrento, LLC, seeks authority from the U.S. Bankruptcy Court for the Northern District of Texas to employ Forshey & Prostok, LLP, as its attorneys, nunc pro tunc to the Petition Date. As counsel, F&P will advise the Debtor (i) of its rights and duties as debtor-in-possession, (ii) concerning negotiation and documentation of agreements, debt restructurings and related transactions, (iii) concerning actions that it might take to collect and to recover property for its bankruptcy estate, and (iv) in connection with the formulation, negotiation and promulgation of a plan of reorganization and related documents. The Debtor will pay F&P according to the firm's current customary hourly rates: Professional Fee Range ------------ --------- Partners $525 Associates $225 - $400 Of counsel $275 - $425 Paralegals $150 - $175 F&P will also be reimbursed for its actual and necessary expenses. The Debtor paid F&P a $50,000 retainer for its prepetition services. The unused balance of the Retainer will be applied to postpetition services. J. Robert Forshey, Esq., a partner at F&P, attests that his firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. About Moore Sorrento Hurst, Texas-based Moore Sorrento, LLC, owns real property located in Moore, Oklahoma, commonly known as the Shops at Moore, which the Company operates as a retail shopping center. The center's current 23 tenants offer various goods and services to retail customers. Moore Sorrento filed Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 11-44651) on Aug. 17, 2011. Moore Sorrento estimated assets of up to $100 million and debts of up to $50 million as of the Chapter 11 filing. NORTEL NETWORKS: Retiree Committee Taps Togut Segal as Counsel -------------------------------------------------------------- BankruptcyData.com reports that Nortel Networks' official committee of retirees filed with the U.S. Bankruptcy Court motions to retain Togut Segal & Segal (Contact: Albert Togut) as counsel at these hourly rates: member at $800 to $935, associate/counsel at $215 to $715 and paraprofessional/law clerk at $145 to $285 and McCarter & English (Contact: William F. Taylor, Jr.) as Delaware counsel at these hourly rates: partner at $375 to $825, associate/counsel at $220 to $610 and paraprofessional/law clerk at $85 to $230. About Nortel Networks Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/-- was once North America's largest communications equipment provider. It has sold most of the businesses while in bankruptcy. Nortel Networks Corp., Nortel Networks Inc., and other affiliated corporations in Canada sought insolvency protection under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice (Commercial List). Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. The Monitor sought recognition of the CCAA Proceedings in the U.S. by filing a bankruptcy petition under Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 09-10164). Mary Caloway, Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's counsel. Nortel Networks Inc. and 14 affiliates filed separate Chapter 11 petitions (Bankr. D. Del. Case No. 09-10138) on Jan. 14, 2009. Judge Kevin Gross presides over the case. James L. Bromley, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, and Christopher M. Samis, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, represent the Official Committee of Unsecured Creditors. Certain of Nortel's European subsidiaries also made consequential filings for creditor protection. On May 28, 2009, at the request of the Administrators, the Commercial Court of Versailles, France ordered the commencement of secondary proceedings in respect of Nortel Networks S.A. On June 8, 2009, Nortel Networks UK Limited filed petitions in this Court for recognition of the English Proceedings as foreign main proceedings under chapter 15 of the Bankruptcy Code. Nortel Networks divested off key assets while in Chapter 11. In March 2009, the U.S. Bankruptcy Court entered an order approving the sale of the Layer 4-7 assets to Radware Ltd. as the successful bidder at auction. In July 2009, Nortel sold its CDMA and LTE-related assets to Telefonaktiebolaget LM Ericsson (Publ). In September 2009, the Court Nortel sold its Enterprise Solutions business to Avaya Inc. In October 2009, the Court approved the sale of assets associated with Nortel's Next Generation Packet Core network components to Hitachi, Ltd. On Dec. 2, 2009, the Court approved the sale of assets associated with Nortel's GSM/GSM-R business to Telefonaktiebolaget LM Ericsson (Publ) and Kapsch Carriercom AG. In December 2009, the Debtors sold their Metro Ethernet Networks business to Ciena Corporation. In March 2010, Nortel sold its Carrier Voice Over IP and Application Solutions business to GENBAND Inc. In September 2010, Nortel sold its Multi-Service Switch business to Ericsson. In August 2011, Nortel won court approval to sell its intellectual property portfolio to a group that includes Apple Inc. and Microsoft Corp. for $4.5 billion. Nortel Networks filed a proposed plan of liquidation in the U.S. Bankruptcy Court. The Plan generally provides for full payment on secured claims with other distributions going in accordance with the priorities in bankruptcy law. NOVADEL PHARMA: Court Upholds Pfizer's Use Patent for ED to 2019 ---------------------------------------------------------------- NovaDel Pharma Inc., as previously reported, recently initiated its clinical development program for Duromist, its oral spray formulation of sildenafil citrate, for use in erectile dysfunction. The recent decision in the court to uphold Pfizer's use patent for ED to 2019 may limit NovaDel's ability to market its oral spray formulation for ED in the US. The recent court action does not limit its ability to market its formulation outside the US after similar sildenafil patents expire in 2013. Sildenafil citrate has two distinct clinical uses. In the decision to move forward with the ED application of the compound, NovaDel considered its alternative use for chronic use in Pulmonary Arterial Hypertension (PAH). With the recent US court decision, NovaDel is actively examining the opportunity to bring its oral spray formulation to this clinical application. Given the clinical work performed to date, NovaDel believes it can add PAH to its program in a manner that, if funded, can bring a clinical advantage to patients suffering from this very debilitating disorder. It should also be noted that in addition to seeking funding to pursue its company objectives, NovaDel is also examining a variety of strategic alternatives that would allow the company to continue to develop its product portfolio. About NovaDel Pharma Bridgewater, N.J.-based NovaDel Pharma Inc. (OTC BB: NVDL) -- http://www.novadel.com/-- is a specialty pharmaceutical company that develops oral spray formulations of marketed pharmaceutical products. The Company's patented oral spray drug delivery technology seeks to improve the efficacy, safety, patient compliance, and patient convenience for a broad range of prescription pharmaceuticals. The Company's balance sheet at June 30, 2011, showed $1.19 million in total assets, $10.87 million in total liabilities, and a $9.67 million total stockholders' deficiency. As reported in the TCR on April 1, 2011, J.H. Cohn LLP, in Roseland, New Jersey, expressed substantial doubt about Novadel Pharma's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has suffered recurring losses from operations and negative cash flows from operating activities. As of June 30, 2011, the Company had cash and cash equivalents of $865,000, negative working capital of $3.3 million, and an accumulated deficit of $93 million. Based on the Company's operating plan, the Company expects that its existing cash and cash equivalents will fund its operations only through Sept. 30, 2011. OLD CORKSCREW: Court Approves Kapila & Company as CRO ----------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida authorized Old Corkscrew Plantation LLC and its debtor-affiliates to employ Kapila & Company as chief restructuring officer. According to the Troubled Company Reporter on Aug. 19, 2011, the firm will provide restructuring management services including providing the services of Soneet R. Kapila to serve as chief restructuring officer of the Debtors. The firm will be paid by the Debtor for the services rendered at $490 per hour. The Debtors assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Fort Myers, Florida-based Old Corkscrew Plantation LLC, whose oranges are made into Minute Maid and Tropicana juice, filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 11-14559) on July 29, 2011, listing $25,264,047 in assets and $60,751,633 in debts. Old Corkscrew sought Chapter 11 protection along with its affiliates. The Debtors' orange groves are valued at $24 million. Peter Steven Singerman, Esq. -- singerman@bergersingerman.com -- at Berger Singerman P.A., serves as the Debtors' bankruptcy counsel. Scott Westlake, the Debtors' managing member, signed the petition. Mr. Westlake is also listed as the Debtors' largest unsecured creditor, with $4,827,906 owed. Another $338,511 debt is owed to Scott and Vicki Westlake. OLD CORKSCREW: Court Approves McDowell Rice as General Counsel -------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida authorized Old Corkscrew Plantation LLC and its debtor-affiliates to employ McDowell, Rice, Smith & Buchanan P.C. as general counsel to give advice to the Debtors with respect to their powers and duties as debtors-in-possession. According to the Troubled Company Reporter on Aug. 19, 2011, the Debtors assured the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Fort Myers, Florida-based Old Corkscrew Plantation LLC, whose oranges are made into Minute Maid and Tropicana juice, filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 11-14559) on July 29, 2011, disclosing $25,264,047 in assets and $60,751,633 in debts. Old Corkscrew sought Chapter 11 protection along with its affiliates. The Debtors' orange groves are valued at $24 million. Peter Steven Singerman, Esq. -- singerman@bergersingerman.com -- at Berger Singerman P.A., serves as the Debtors' bankruptcy counsel. Scott Westlake, the Debtors' managing member, signed the petition. Mr. Westlake is also listed as the Debtors' largest unsecured creditor, with $4,827,906 owed. Another $338,511 debt is owed to Scott and Vicki Westlake. OLD CORKSCREW: Files Schedules of Assets & Liabilities ------------------------------------------------------ Old Corkscrew Plantation LLC filed with the U.S. Bankruptcy Court for the Middle District of Florida, its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------- ----------- A. Real Property $24,000,000 B. Personal Property $1,264,047 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $54,434,354 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $6,324,952 ----------- -------------- TOTAL $25,264,047 $60,759,306 About Old Corkscrew Plantation LLC Fort Myers, Florida-based Old Corkscrew Plantation LLC, whose oranges are made into Minute Maid and Tropicana juice, filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 11-14559) on July 29, 2011, disclosing $25,264,047 in assets and $60,751,633 in debts. Old Corkscrew sought Chapter 11 protection along with its affiliates. The Debtors' orange groves are valued at $24 million. Peter Steven Singerman, Esq. -- singerman@bergersingerman.com -- at Berger Singerman P.A., serves as the Debtors' bankruptcy counsel. Scott Westlake, the Debtors' managing member, signed the petition. Mr. Westlake is also listed as the Debtors' largest unsecured creditor, with $4,827,906 owed. Another $338,511 debt is owed to Scott and Vicki Westlake. OMEGA NAVIGATION: Has Court Nod to Pay Critical Vendor Claims ------------------------------------------------------------- Omega Navigation Enterprises, Inc., et al., sought and obtained from the U.S. Bankruptcy Court for the Southern District of Texas permission to pay and honor prepetition obligations to vendors that provide them essential goods and services before they filed for bankruptcy. As the Debtors are in the business of marine transportation services, the Critical Vendors provide these goods and services: agents' expenses and costs; port expenses; lubes; crew costs; cabin, deck and engine stores; bunkers; and maintenance and repair. The Debtors are authorized to pay all or part of the prepetition claims of Critical Vendors in an amount not to exceed $2 million. Critical Vendors will be paid in either a lump-sum payment or over time based on negotiations with each Critical Vendors and the Debtors' available cash flow. The Debtors are required to maintain a summary list of all payments to Critical Vendors, and provide updated copies of that list to the Office of the U.S. Trustee for the Southern District of Texas, counsel to the agents for the Debtors' prepetition secured lenders, and counsel to any official committee appointed in their cases on a monthly basis. All financial institutions are authorized to receive, process, honor and pay all checks presented for payment and electronic payment requests relating to the Critical Vendors Motion. 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. Seward & Kissel serves as special counsel. Jefferies & Company, Inc. is the financial advisor. PACIFIC CAPITAL: DBRS Confirms 'B' Issuer & Senior Debt Rating -------------------------------------------------------------- DBRS Inc. has confirmed all ratings for Pacific Capital Bancorp and its bank subsidiary, Santa Barbara Bank & Trust, N.A., including its Issuer & Senior Debt rating at B (high). The trend on all long-term ratings is Positive, while the trend on all short-term ratings is Stable. The ratings action follows a detailed review of the Company's operating results, financial fundamentals and future prospects. PCBC's ratings reflect the Company's dominant market position within demographically attractive Santa Barbara and a strong capital base. The ratings also consider heightened regulatory scrutiny including not being allowed to upstream dividends from the Bank for three years, limited access to the capital markets and potential damage to PCBC's franchise strength given the severe problems at the Company prior to the recapitalization. The Positive trend reflects DBRS's expectation that the Company will continue to execute on its strategic plan to upgrade its technology, enhance risk management and return to sustainable profitability. Resolving outstanding regulatory issues and becoming current on interest payments related to its trust preferred securities would also be viewed favorably. Conversely, lack of progress executing on the Company's strategic plan or resolving regulatory issues could revert the trend back to Stable. Positively, the Company has remained profitable each quarter since the $500 million investment made by SB Acquisition Company LLC, a wholly-owned subsidiary of Ford Financial Fund, L.P. (Ford), on August 31, 2010. In 1H11, the Company reported $37.7 million of net income applicable to common shareholders, which is a significant improvement from the large losses PCBC was reporting before the Ford Investment ($144.0 million net loss applicable to common shareholders in 1H10). Following the Ford Investment, the entire balance sheet was fair valued including the problematic legacy loan portfolio. As a result, the Company is only provisioning for newly originated or purchased loans, which has greatly enhanced profitability. Moreover, the legacy loan portfolio has performed better than originally expected resulting in earnings accretion. With solid earnings and balance sheet contraction, the Company continues to improve its capital position. Specifically, PCBC's tangible common equity ratio improved almost a full percentage point to 10.72% from 9.81% in 1Q11. Meanwhile, all regulatory capital ratios remain above the enhanced capital requirements mandated by the Office of the Comptroller of the Currency (OCC). DBRS believes PCBC now has ample capital for growth initiatives including ramping up loan originations. Despite the progress made since the investment in returning to profitability and building a strong capital base, the Company remains operating under significant regulatory scrutiny. Specifically, PCBC is operating under a Written Agreement with the Federal Reserve and a Consent Order issued by the OCC that was modified in September 2010. Besides higher capital requirements and not being able to pay dividends for at least three years, these regulatory agreements call for the Company to improve risk management controls and processes in regards to loan underwriting, surveillance, collection, remediation and disposition of loans. Moreover, the agreements require the Company to submit a capital and strategic plan, and provide cash flow projections on a monthly basis. Lastly, the Company is still not paying interest on its outstanding $69.4 million of junior subordinated notes related to its trust preferred securities, which makes it extremely difficult to access the debt markets and limits financial flexibility. The payments were deferred in 2Q09 and are still not current. At June 30, 2011, the Company had accrued but not paid $4.6 million of interest expense. DBRS notes that the Company can defer payment for 20 quarters before being in default and PCBC must receive approval from the Federal Reserve to become current on these securities. Pacific Capital Bancorp, a bank holding company headquartered in Santa Barbara, CA, reported $5.8 billion in assets at June 30, 2011. PARAMOUNT LIMITED: Can Hire McDonald Hopkins as Counsel ------------------------------------------------------- The Honorable Thomas J. Tucker has approved the application of Paramount Limited, LLC, et al. to employ McDonald Hopkins PLC as their counsel, retroactive to the Petition Date. The Debtors and the Office of the U.S. Trustee have consented to the entry of the order. About Paramount Limited Paramount Limited LLC was an investor in distressed real estate. Paramount Limited and three other affiliates sought Chapter 11 bankruptcy protection (Bankr. E.D. Mich. Lead Case No. 11-59829) on July 21, 2011, after a state court appointed McTevia & Associates as receiver to take over. The receiver was appointed at the behest of the Police and Fire Retirement System of the city of Detroit, one of Paramount's unsecured creditors, with $13.2 million owed. The Retirement System said Paramount was "a classic Ponzi scheme." Judge Thomas J. Tucker presides over the case. Gene R. Kohut of Kohut Management Group, LLC, has been tapped to serve as their Chief Restructuring Officer. Stephen M. Gross, Esq., and Jayson Russ, Esq., at McDonald Hopkins Plc, serve as bankruptcy counsel. Paramount Limited estimated assets of more than $10 million and debt of less than $10 million. The petition was signed by Abner McWhorter, Paramount's managing member. Affiliates that simultaneously sought Chapter 11 protection are Paramount Land Holdings, LLC; Paramount Servicing, LLC; and Paramount Land Holdings, LLC. The receiver is represented by: Mark S. Frankel, Esq. Jerry M. Ellis, Esq. COUZENS LANSKY FEALK ELLIS ROEDER & LAZAR P.C. 39395 W. Twelve Mile Road, Suite 200 Farmington Hills, MI 48331 Tel: 248-489-8600 E-mail: mfrankel@couzens.com jerry.ellis@couzens.com The Police and Fire Retirement System is represented by: Marie T. Racine, Esq. Jennifer A. Cupples, Esq. RACINE & ASSOCIATES 1001 Woodward Avenue, Suite 1100 Detroit, MI 48226 Tel: 313-961-8930 Fax: 313-961-8945 E-mail: mracine@racinelaw.us jcupples@racinelaw.us PARMALAT SPA: Judge Affirms His Jurisdiction in Auditor Suits ------------------------------------------------------------- Hilary Russ at Bankruptcy Law360 reports that U.S. District Judge Lewis A. Kaplan on Wednesday decided, for the second time, that it was within his purview to rule on two lawsuits against auditor Grant Thornton LLP in multidistrict litigation over the collapse of Italian dairy giant Parmalat SpA. According to Law360, Judge Kaplan found that he wasn't obliged to abstain from dismissing two lawsuits in a larger multidistrict litigation after the Second Circuit sent the cases back down to him for further consideration. About Parmalat S.p.A. Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court declared the units insolvent. On June 22, 2004, Dr. Bondi, on behalf of the Italian entities, sought protection from U.S. creditors by filing a petition under Sec. 304 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 04-14268). Parmalat's U.S. operations filed for Chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represented the U.S. Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Three special-purpose vehicles established by Parmalat S.p.A. -- Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. -- commenced separate winding up proceedings before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. were appointed liquidators in the cases. On Jan. 20, 2004, the Liquidators filed a Sec. 304 petition (Bankr. S.D.N.Y. Case No. 04-10362). Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represented the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presided over the Parmalat Debtors' U.S. cases and Sec. 304 cases. In 2007, Parmalat obtained a permanent injunction in the Sec. 304 cases. PATRIOT BANK: Closed; Georgia Commerce Bank Assumes All Deposits ---------------------------------------------------------------- Georgia Commerce Bank of Atlanta, Ga., acquired the banking operations, including all the deposits, of Patriot Bank of Georgia in Cumming, Ga., and CreekSide Bank of Woodstock, Ga. The two banks were closed on Friday, Sept. 2, 2011, by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Georgia Commerce Bank. Patriot Bank of Georgia had one branch, and CreekSide Bank had two branches. Due to the Labor Day holiday, the three branches of the two failed banks will reopen as branches of Georgia Commerce Bank on Tuesday, Sept. 6. Depositors of the two failed banks will automatically become depositors of Georgia Commerce Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. As of June 30, 2011, Patriot Bank of Georgia had around $150.8 million in total assets and $111.2 million in total deposits; and CreekSide Bank had total assets of $102.3 million and total deposits of $96.6 million. In addition to assuming all of the deposits of the two Georgia banks, Georgia Commerce Bank agreed to purchase essentially all of their assets. The FDIC and Georgia Commerce Bank entered into loss-share transactions on the failed banks' assets. The loss-share transaction for Patriot Bank of Georgia covers $136.2 million of its assets, and the loss-share transaction for CreekSide Bank covers $69.2 million of its assets. Georgia Commerce Bank will share in the losses on the asset pools covered under the loss- share agreements. The loss-share transactions are projected to maximize returns on the assets covered by keeping them in the private sector. The transactions also are expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html Customers with questions about the transaction should call the FDIC toll-free: for Patriot Bank of Georgia customers, 1-800-323- 6111, and for CreekSide Bank customers, 1-800-238-8209. Interested parties also can visit the FDIC's Web sites: for Patriot Bank of Georgia, http://www.fdic.gov/bank/individual/failed/patriot.html and for CreekSide Bank, http://www.fdic.gov/bank/individual/failed/creekside.html The FDIC estimates that the cost to the Deposit Insurance Fund for Patriot Bank of Georgia will be $44.4 million and for CreekSide Bank, $27.3 million. Compared to other alternatives, Georgia Commerce Bank's acquisition of the two institutions was the least costly resolution for the FDIC's DIF. The closings are the 69th and 70th FDIC-insured institutions to fail in the nation so far this year and the eighteenth and nineteenth in Georgia. The last FDIC-insured institution closed in the state was First Southern National Bank, Statesboro on Aug. 19, 2011. PENINSULA HOSPITAL: Sept. 13 Hearing for Patient Care Ombudsman --------------------------------------------------------------- Howard Koplowitz at YourNabe.com reports that Peninsula Hospital has until Sept. 9, 2011, to file papers in federal bankruptcy court in Brooklyn to argue why a patient care ombudsman should not be assigned to the struggling facility as it continues to negotiate with a physician-led investor group that seeks to buy the Rockaway institution. The report notes an involuntary Chapter 11 bankruptcy petition was filed against Peninsula August 16 by a Peninsula doctor and two vendors who say they are owed a combined $127,204 from the hospital. According to the report, the hospital is in danger of closing following revelations that it owes vendors $13 million, but a physician-led investor group is seeking an agreement to take over the hospital. Peninsula Hospital spokeswoman Liz Sulik said "negotiations are continuing between the investor group and the hospital," but would not say what Peninsula's response to the involuntary bankruptcy will be. Peninsula has until September 9 to file papers in bankruptcy court and officials from the facility are expected to appear in court Sept. 13 for a hearing to determine whether a patient care ombudsman will be appointed by the court. If Peninsula fails to show cause, the court will appoint an ombudsman "for the protection of patients under the specific circumstances of this case," according to court papers. Three petitioners who were owed $127,204 filed an involuntary Chapter 11 petition against the hospital Aug. 16, according to Crain's, but the hospital declined to comment about the court action, which was designed to give the board more time to resolve the crisis. Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an involuntary Chapter 11 bankruptcy protection against Peninsula Hospital Center in the U.S. Bankruptcy Court for the Eastern District of New York (Case No. 11-47056) on Aug. 16, 2011. Judge Elizabeth S. Stong presides over the case. Marilyn Cowhey Macron, Esq., Macron & Cowhey, represents the petitioners. PENN TREATY: Provides Status on PTAC Liquidation Proceedings ------------------------------------------------------------ Penn Treaty American Corporation commenced the mailing of a letter to its shareholders of record. The shareholder letter describes the current status of the proceedings relating to the Pennsylvania Insurance Commissioner's efforts to liquidate the Company's direct and indirect subsidiaries, Penn Treaty Network America Insurance Company and American Network Insurance Company. The shareholder letter also provides certain internally prepared, unaudited financial information of the Company as of June 30, 2011. A full-text copy of the Letter is available for free at: http://is.gd/ulceVN About Penn Treaty American Penn Treaty American Corporation -- https://www.penntreaty.com/ -- through its wholly owned direct and indirect subsidiaries, Penn Treaty Network America Insurance Company, American Network Insurance Company, American Independent Network Insurance Company of New York, Network Insurance Senior Health Division and Senior Financial Consultants Company, is engaged in the underwriting, marketing and sale of individual and group accident and health insurance products, principally covering long term nursing home and home health care. On October 2, 2009, the Insurance Commissioner of the Commonwealth of Pennsylvania filed in the Commonwealth Court of Pennsylvania Petitions for Liquidation for PTNA and American Network Insurance Company. PTNA is a direct insurance company subsidiary of Penn Treaty American Corporation, and ANIC is a subsidiary of PTNA. PERKINS & MARIE: S&P Withdraws 'D' CCR on Lack of Information ------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'D' corporate credit rating on Memphis-based Perkins & Marie Callender's Inc. "We also withdrew our ratings on the company's debt. The company is operating under Chapter 11 bankruptcy protection and, in our opinion, is no longer providing sufficient information for us to maintain a credit rating," S&P related. PORTER HILLS: S&P Cuts Rating on Series 2003 Securities to 'BB-' ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term rating and underlying rating (SPUR) to 'BB-' from 'BB' on Grand Rapids Economic Development Corp., Mich., and Michigan Strategic Fund' s series 2003 auction-rate securities. At the same time, Standard & Poor's lowered its long-term rating to 'BB-' from 'BB' on Michigan Strategic Fund's series 1998 revenue bonds. All bonds were issued for Porter Hills Presbyterian Village (PHPV). The outlook on all ratings is negative. "The rating action reflects our view of the impact that operating losses in the last few years and a one-time cash outlay have had on liquidity, as well as a restructuring of the debt profile with bank qualified bonds that have termination risk," said Standard & Poor's credit analyst Avanti Paul. The 'BB-' ratings reflect S&P's view of PHPV's: Reduction of operating losses in fiscal 2011, which management expects will continue in fiscal 2012; Improved and good maximum annual debt service (MADS) coverage in fiscal 2011; Low capital spending and no major capital plans financed with reserves or debt; and Relatively stable average occupancy. "The negative outlook reflects our view of PHPV's continued operating losses and very limited balance sheet flexibility resulting from lower liquidity," S&P added. QEP RESOURCES: S&P Rates $1.5-Bil. Sr. Credit Facility at 'BB+' --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB+' and '3' recovery to Denver-based QEP Resources Inc.'s $1.5 billion senior unsecured revolving credit facility due 2016. The '3' recovery rating indicates our expectation of meaningful (50% to 70%) recovery in the event of a payment default. As of June 30, 2011, QEP had approximately $1.6 billion of funded debt outstanding. "The corporate credit rating on QEP reflects its concentration in natural gas assets and smaller scale compared with many investment-grade exploration and production companies," said Standard & Poor's credit analyst Patrick Jeffrey. "These characteristics are somewhat limiting factors to the ratings." Supporting the ratings are the company's favorable cost structure, good assets in the Rockies and Mid-Continent regions, and a conservative financial policy. The majority of QEP's operations are exposed to the cyclical and capital-intensive pressures of the E&P sector. "The company had roughly 3.0 trillion cubic feet of natural gas equivalent of total proved reserves as of fiscal 2010 and we expect it to produce about 730 million cubic feet equivalent per day in fiscal 2011. Operations are focused primarily in the Rockies (about 42% of current production) and the Mid-Continent region (58%)," S&P related. "The outlook is stable. We expect that QEP's good cost structure and conservative financial policy should result in key credit protection measures remaining in line with the ratings over the next 12 months. We would consider a negative rating action if the company demonstrates a more aggressive financial policy that results in total debt to EBITDA exceeding 2.5x. We consider the potential for a positive rating action limited over the next 12 months given our expectations for continued near-term weakness in natural gas prices," S&P added. QUALTEQ INC: U.S. Trustee Appoints 5-Member Creditor's Panel ------------------------------------------------------------ Roberta A. DeAngelis, United States Trustee for Region 3, under 11 U.S.C. Sec. 1102(a) and (b), appointed four unsecured creditors to serve on the Official Committee of Unsecured Creditors of QualTeq, Inc. The Creditors Committee members are: 1. Plami S.A. De. C.V. ATTN: Javier Miguel Checa Calzada de la Naranja NO 167 2do Piso, Fracc, Industrial Alec Blanco Naucalpan, Estado de Mexico 53370 Tel: (011) 525-521-222401 Fax: (011) 5255-55763526 2. Quad/Graphics Inc. ATTN: Patricia A. Rydzk N63 W23075 State Hwy 74 Sussex WI, 53089 Tel: (414) 566-2127 Fax: (414) 566-9415 3. XPEDX ATTN: Jeff Biskaduros 261 River Road Clifton NJ 07014 Tel: (973) 405-2231 Fax: (973) 405-2143 4. Bradner Smith & Company a wholly owned subsidiary of Bradner Center Company ATTN: Christopher Kouros 2300 Arthur Avenue Elk Grove Village, IL 60007, Tel: (847) 290-5551 Fax: (847) 290-7979 5. JDSU Uniphase Corporation ATTN: May Adrig 430 N. McCarthy Blvd. Milpitas CA 95035 Tel: (408) 546-7081 Fax: (408) 546-4372 About QualTeq, Inc. South Plainfield, New Jersey-based QualTeq, Inc., engages in the design, manufacture, and personalization of plastic cards in the United States. The company manufactures magnetic, contact, and dual interface smart cards. Qualteq Inc. and 17 affiliated companies filed Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12572) on Aug. 14, 2011. Eric Michael Sutty, Esq., and Jeffrey M. Schlerf, Esq., at Fox Rothschild LLP, serve as local counsel to the Debtors. K&L Gates LLP is the general bankruptcy counsel. Scouler & Company is the restructuring advisors. QualTeq estimated assets of up to $50 million and debts of up to $100 million as of the Chapter 11 filing. QUANTUM FUEL: Amends Terms of WB QT Convertible Promissory Notes ---------------------------------------------------------------- Quantum Fuel Systems Technologies Worldwide, Inc., and its secured lender, WB QT, LLC, entered into an Agreement and Amendment pursuant to which the Company and the Lender agreed to amend the terms of each of the three outstanding convertible promissory notes held by Lender and that certain promissory note held by Lender that is referred to by the Company as the "Consent Fee Note." The maturity date on the Convertible Notes was extended from Aug. 31, 2011, to Oct. 31, 2011. Two million dollars of the principal is due and payable on Sept. 9, 2011, and the remaining $10.5 million is due and payable on Oct. 31, 2011. In exchange for the extension, the Company issued 500,000 shares of its common stock to the Lender, and the conversion price under each of the Convertible Notes will be automatically adjusted on Sept. 1, 2011, from $9.80 per share to $3.31 per share, which represents the closing price for a share of the Company's common stock on Aug. 31, 2011. The Company was given the right to prepay all or part of the Convertible Notes. Under the Amended Consent Fee Note, the Company's right to satisfy payment demands using shares of its common stock was amended to provide that the Company can exercise that right to use shares of common stock as long as the volume weighted average price for a share of its common stock for the 3 consecutive trading day period prior to the date a payment demand is made is greater than $2.00. Prior to the execution of the Agreement, the Company could only satisfy payment demands using shares of its common stock if the share price was at least $10.00. The Lender's right to make payment demands was amended so that no payment demands can be made prior to Oct. 31, 2011, unless the Company's VWAP Price is greater than $2.00. The Company was given the immediate right to prepay all or part of the Consent Fee Note. In the event the Company exercises its Call Right, the amount so called must be paid in cash. Prior to the execution of the Agreement, the Company could not call any part of the Consent Fee Note until Jan. 16, 2012. A full-text copy of the Agreement and Amendment is available for free at http://is.gd/Gcn3Re About Quantum Fuel Based in Irvine, California, Quantum Fuel Systems Technologies Worldwide, Inc., is a fully integrated alternative energy company and considers itself a leader in the development and production of advanced clean propulsion systems and renewable energy generation systems and services. Quantum Fuel and its senior lender, WB QT, LLC, entered into a Ninth Amendment to Credit Agreement and a Forbearance Agreement on Jan. 3, 2011. The Senior Lender agreed to provide the Company with a $5.0 million non-revolving line of credit, which may be drawn upon at any time prior to April 30, 2011. Advances under the New Line of Credit do not bear interest -- unless an event of default occurs, in which case the interest rate would be 10% per annum -- and mature on April 30, 2011. The Senior Lender also agreed to forbear from accelerating the maturity date for any portion of the Senior Debt Amount and from exercising any of its rights and remedies with respect to the Senior Debt Amount until April 30, 2011. The Company reported a net loss attributable to stockholders of $11.03 million on $20.27 million of total revenue for the year ended Apri1 30, 2011, compared with a net loss attributable to stockholders of $46.29 million on $9.60 million of total revenue during the prior year. The Company's balance sheet at April 30, 2011, $71.97 million in total assets, $33.39 million in total liabilities and $38.57 million in total equity. Ernst & Young LLP, in Orange County, California, noted that Quantum Fuel's recurring losses and negative cash flows combined with the Company's existing sources of liquidity and other conditions raise substantial doubt about the Company's ability to continue as a going concern. Possible Bankruptcy The Company anticipates that it will need to raise a significant amount of debt or equity capital in the near future in order to repay certain obligations owed to the Company's senior secured lender when they mature. As of June 15, 2011, the total amount owing to the Company's senior secured lender was approximately $15.5 million, which includes approximately $12.5 million of principal and interest due under three convertible promissory notes that are scheduled to mature on Aug. 31, 2011, and a $3.0 million term note that is potentially payable in cash upon demand beginning on Aug. 1, 2011, if the Company's stock is below $10.00 at the time demand for payment is made. If the Company is unable to raise sufficient capital to repay these obligations at maturity and the Company is otherwise unable to extend the maturity dates or refinance these obligations, the Company would be in default. The Company said it cannot provide any assurances that it will be able to raise the necessary amount of capital to repay these obligations or that it will be able to extend the maturity dates or otherwise refinance these obligations. Upon a default, the Company's senior secured lender would have the right to exercise its rights and remedies to collect, which would include foreclosing on the Company's assets. Accordingly, a default would have a material adverse effect on the Company's business and, if the Company's senior secured lender exercises its rights and remedies, the Company would likely be forced to seek bankruptcy protection. RANCHER ENERGY: Seeks to Hire Stinson Morrison as Special Counsel ----------------------------------------------------------------- Rancher Energy Corp. seek to employ Stinson Morrison Hecker LLP as its special counsel, nunc pro tunc to Jul. 7, 2011. Stinson Morrison will assist in conducting a deposition of John Works in adversary case no. 10-1173-MER, Rancher Energy Corp. v. GasRock Capital, LLC., and related matters. Mr. Works resides in Washington, DC. Stinson Morrison will be paid in accordance to its hourly rates and reimbursed for expenses. The firm's current hourly rates are: Partner $440 Associates $270 Based on the verified statement of Darrell W. Clark, the Debtor believes that Stinson Morrison does not represent or hold any interest adverse to the Debtor or its estate in the matters upon which the firm is to be retained or in any other matters, and that the firm is a disinterested person within the meaning of Section 101(14) of the Bankruptcy Code. About Rancher Energy Denver, Colorado-based Rancher Energy Corp. (OTC BB: RNCHQ) -- http://www.rancherenergy.com/-- is an independent energy company that explores for and develops produces, and markets oil and gas in North America. Through March 2011, the Company operated four oil fields in the Powder River Basin, Wyoming. Effective March 1, 2011, the Company sold all of its oil and gas properties, which has allowed it to eliminate the majority of its debt and also provide financial resources during its continuing reorganization. The Company was formerly known as Metalex Resources, Inc., and changed its name to Rancher Energy Corp. in 2006. Rancher Energy Corp. was incorporated in the State of Nevada on Feb. 4, 2004. Rancher Energy filed for Chapter 11 bankruptcy protection on Oct. 28, 2009 (Bankr. D. Colo. Case No. 09-32943). Herbert A. Delap, Esq., who has an office in Denver, Colorado, assists the Debtor in its restructuring effort. In its petition, the Company estimated assets and debts of between $10 million and $50 million each. As reported in the TCR on March 25, 2011, the Company delivered to the Bankruptcy Court a first amended Chapter 11 plan of reorganization, and first amended disclosure statement explaining that plan. READER'S DIGEST: S&P Lowers Corporate Credit Rating to 'CCC+' ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Reader's Digest Assn. Inc. to 'CCC+' from 'B'. "In addition, we lowered our ratings on the company's $525 million senior secured notes to 'CCC' from 'B'. The recovery rating was revised to '5' from '4', because the company obtained a new $45 million secured term loan on Aug. 12, 2011, which ranks senior to the notes. Our rating outlook is negative," S&P related. "We lowered the ratings based on the company's weak second-quarter results, its narrow cushion of compliance with financial covenants, vulnerability to economic cyclicality, and our view that its weakened brands and eroding consumer confidence could further reduce liquidity," said Standard & Poor's credit analyst Tulip Lim. "Our rating on Reader's Digest reflects our expectation that the company will continue facing secular pressure in its publications business; that its publishing business will remain highly competitive; that there are minimal growth prospects in its direct marketing business; and that its direct marketing model -- selling music, videos, and books -- will become increasingly uncompetitive. It also reflects the dated image of the Reader's Digest flagship magazine. These considerations support our view of the business risk profile as 'vulnerable' and our expectation that sales will continue to decline. We consider the company's financial profile to be highly leveraged, given its significant debt burden," S&P stated. "Our base-case scenario for full-year 2011 indicates revenue, excluding fair value adjustments and currency exchange movements, declining at a percentage rate in the teens because of weakening consumer sentiment and revenue declines in the Ab Circle Pro product. We believe that, despite the roll-off of higher marketing expense in the first half, full-year EBITDA could decline over 30%. For the second quarter ended June 30, 2011, revenue declined 6%, but excluding fair value adjustments and foreign exchange, revenue fell 18% because of a decline in sales in Ab Circle Pro, softness in some international markets, and declining advertising revenue and renewals in some magazines. The company's EBITDA (after restructuring expenses and stock-based compensation) dropped 26%," S&P related. "Despite a roughly 75% reduction in debt as a result of a bankruptcy process concluded Feb. 22, 2010, adjusted debt-to- EBITDA is high at roughly 5.4x for the 12 months ended June 30, 2011, and in line with the indicative debt-to-EBITDA ratio of above 5x that we associate with a 'highly leveraged' financial risk profile. On Aug. 12, 2011, the company obtained a new $45 million secured term loan and a new $10 million unsecured term loan. Following the quarter-end, the company drew down its entire revolving credit facility. We expect leverage, including the new term loans, the additional revolver borrowings, and our expectation of further EBITDA declines will rise. Adjusted coverage was 1.7x for the twelve months ended June 30, 2011. Discretionary cash flow was negative for the same period. Even excluding high bonus payments and costs related to the bankruptcy reorganization, discretionary cash flow for the period would have been negative. We expect that discretionary cash flow will remain negative because we believe EBITDA will continue to decline," S&P stated. REGAL PLAZA: Has Lender Deal, Seeks Case Dismissal -------------------------------------------------- Regal Plaza LLC asks the U.S. Bankruptcy Court for the District of Nevada to dismiss its Chapter 11 case and approve a settlement agreement with secured lender Nevada State Bank. A hearing is set for Sept. 6, 2011, at 1:30 p.m., to consider the Debtors' requests. The Debtor tells the Court that the key consideration for the dismissal is that the Debtor has an affiliate that has the ability to refinance its shopping mall in an amount sufficient to satisfy its secured lender. In 2004, the bank made a loan to the Debtor of $8,320,000, the Debtor says. The Debtor relates that, on Nov. 30, 2010, it has proposed a plan of reorganization which would pay the bank monthly payments of principal and interest, and a balloon payment before the end of 10 years. The Debtor and the bank have been litigating various issues relating to the plan. According to the Debtor, the bank and certain of its guarantors have agreed to settle the outstanding issues under the terms and condition of the settlement and release agreement, which is available for free at: http://bankrupt.com/misc/REGALPLAZA_settlement_agreement.pdf Las Vegas, Nevada-based Regal Plaza, LLC, owns a shopping center in Las Vegas, Nevada. The shopping center was originally constructed in 2000 on 5.72 acres which are operated as the Regal Plaza. There is 56,097 square feet of rentable space, approximately 22,510 square feet are currently occupied and 23,187 square feet are currently being improved for tenants with signed leases. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 10-26707) on Sept. 1, 2010. Lenard E. Schwartzer, Esq., at Schwartzer & Mcpherson Law Firm, in Las Vegas, Nev., represents the Debtor as counsel. In its schedules, the Debtor disclosed $10,815,564 in assets and $8,592,879 in liabilities as of the Petition Date. RIDGE PARK: Can Hire Levene Neale as Bankruptcy Counsel ------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California has authorized Ridge Park Office, LLC to employ Levene, Neale, Bender, Yoo & Brill L.L.P. as its bankruptcy counsel. There was no opposition to the application. 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 SBARRO INC: S&P Withdraws D Corp. Credit Rating on Lack of Info --------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its ratings, including its 'D' corporate credit rating, on Melville, N.Y.-based Sbarro Inc. The company is operating under Chapter 11 bankruptcy protection and is no longer providing sufficient information for Standard & Poor's to maintain a credit rating. SHASTA LAKE: Court OKs Downey Brand as Counsel ---------------------------------------------- Shasta Lake Resorts LP sought and obtained permission from the U.S. Bankruptcy Court for the Eastern District of California to employ Downey Brand LLP as counsel. The firm, will among other things: a) prepare and file schedules, statements of financial affairs and other related forms; b) represent the debtor at all meetings of creditors, hearings, pretrial conferences, and trial in this case or any litigation arising in connection with the case; and c) prepare, filing and presentation to the court of any pleading requesting or opposing relief. The Debtor desires to retain counsel immediately and would retain Jamie P. Dreher, Esq., Gregg D. Josephson, Esq., and Downey Brand LLP, who are duly admitted to practice before court. To the best of Downey Brand LLP and the attorney's knowledge, Downey Brand LLP and the attorneys have no connection with Shasta Lake Resorts, any personnel employed in the office of the U.S. Trustee, the creditors or any other party in interest, nor do these attorneys represent or hold any interest adverse to the debtors in possession or the estate herein in the matters upon which they are ti be engaged, and their employment would be un the best interest if the estate and the creditors. 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. SHANE'S FLIGHT DECK: Shane's Bar Files for Chapter in Harrisburg ---------------------------------------------------------------- Hummelstown, Pennsylvania-based Shane's Flight Deck, Ltd., doing business as Shane's City Limits filed a Chapter 11 petition (Bankr. M.D. Pa. Case No. 11-bk-06061) in Harrisburg on Aug. 31, 2011. Nick Malawskey at the Patriot-News, reporting about the Chapter 11 filing, said that Shane's, the Hershey-area bar, made headlines earlier this year when it tried to convert to a gentlemen's club. Located in a plaza off of Hersheypark Drive, in January the bar was the scene of a zoning flap when its owner, Shane Mrakovich, installed a stage and began hosting dancers, according to the Patriot-News. At the time M. Mrakovich said the downturn in the economy had severely impacted the business, and the move was an attempt to boost sales. The bar's landlord, Room One Corp., responded by suing Mr. Mrakovich for violating local zoning rules and for not paying back-owed rent, according to the report. The report notes the suit was settled a few days later when Mr. Mrakovich agreed to stop hosting dancers and to comply with all zoning requirements. In exchange, Room One forgave the bar part of its unpaid rent. The Debtor is represented by: Robert E Chernicoff, Esq. CUNNINGHAM AND CHERNICOFF PC 2320 North Second Street Harrisburg, PA 17110 Tel: (717) 238-6570 Fax: (717) 238-4809 E-mail: rec@cclawpc.com SHENGDATECH INC: Taps Garden City Group as Claims Agent ------------------------------------------------------- Shengdatech Inc. asks the U.S. Bankruptcy Court for the District of Nevada for permission to employ GCG Inc. as the notice, claims and solicitation agent. The firm will, among other things: i) prepare and serve all required notices in this Chapter 11 Case, ii) administer claims and maintain the Debtor's claims register, iii) print ballots and coordinating the mailing of solicitation packages (i.e., ballots, disclosure statement and chapter 11 plan or plans) to all voting and non-voting parties and providing a certificate or affidavit of service with respect thereto, iv) maintain a telephone staff to handle inquiries relating to procedures for filing proofs of claim, voting, and general case information, and v) establish a case specific website for posting of the official claims register and other documents related to the Debtor and this Chapter 11 Case. The firm's hourly rates are: Title Standard Hourly Rates ----- --------------------- Administrative & Data Entry $45-$55 Mailroom and Claims Control $55 Customer Service Representatives $57 Project Administrators $70-$85 Quality Assurance Staff $80-$125 Project Supervisors $95-$110 Systems & Technology Staff $100-$200 Graphic Support for web site $125 Project Managers $125-$175 Directors, Sr. Consultants and Asst VP $200-$295 Vice President and above $295 The Debtor assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Court. 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 US$295.4 million in assets and US$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: Seeks Nod for Michael Kang as CRO -------------------------------------------------- Shengdatech Inc. asks the U.S. Bankruptcy Court for the District of Nevada for permission to appoint Chief Restructuring Officer Michael Kang and A. Carl Mudd and Sheldon Saidman, members of the Special Committee of the Board of Directors of Shengdatech Inc. as representatives authorized to act on behalf of the Debtor. According to the report, by virtue of the CRO's appointment which was confirmed by this Court and the Special Committee's powers granted under the Resolution, the Debtor believes that the CRO and the Members are already statutorily authorized representatives of the Debtor under Nevada law. 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 US$295.4 million in assets and US$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: 341(a) Creditors' Meeting Moved to Oct. 17 ----------------------------------------------------------- ShengdaTech, Inc.'s 11 U.S.C. Sec. 341(a) meeting of creditors on has been continued from Sep. 19, 2011 at 3:00 p.m. (Pacific Standard Time) to Oct. 17, 2011, at 2:00 p.m. (Pacific Standard Time). The meeting will be held at: 300 Booth Street, Room 3024, Reno, Nevada 89509 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 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 US$295.4 million in assets and US$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: U.S. Trustee Appoints 3-Member Creditor's Panel ---------------------------------------------------------------- August B. Landis, United States Trustee for Region 17, under 11 U.S.C. Sec. 1102(a) and (b), appointed three unsecured creditors to serve on the Official Committee of Unsecured Creditors of ShengdaTech, Inc. The Creditors Committee members are: 1. AG OFCON, LLC Represented by: Timothy A. Hutfilz 245 Park Avenue, 26th Floor New York, NY 10167 Tel: (212) 692-2016 Fax: (212) 867-6395 E-mail: thutfilz@angelogordon.com 2. THE BANK OF NEW YORK MELLON as Indenture Trustee One Canada Square London E145A United Kingdom Represented by: Mark Jeanes BNY Mellon 6525 West Campus Oval New Albany, OH 43054 Tel: (207) 964-4468 Fax: (207) 964-2536 E-mail: mark.jeanes@bnymellon.com 3. ZAZOVE ASSOCIATES, LLC Represented by: Mario Valente 1001 Tahoe Blvd. Incline Village, NV 89451 Tel: (775) 886-1500 Fax: (775) 886-1599 E-mail: mvalente@zazove.com 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 US$295.4 million in assets and US$180.9 million in debt as of Sept. 30, 2011. SSI SYSTEMS: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: SSI Systems, Inc. 11612 Knott Street, #1 Garden Grove, CA 92841-1822 Bankruptcy Case No.: 11-22414 Chapter 11 Petition Date: September 1, 2011 Court: U.S. Bankruptcy Court Central District of California (Santa Ana) Judge: Theodor Albert Debtor's Counsel: Robert M. Aronson, Esq. LAW OFFICE OF ROBERT M. ARONSON 444 S. Flower Street, Suite 1700 Los Angeles, CA 90071 Tel: (213) 232-1116 Fax: (213) 232-1195 E-mail: robert@aronsonlawgroup.com Scheduled Assets: $4,120,947 Scheduled Debts: $5,901,744 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/cacb11-22414.pdf The petition was signed by Randy Walker, president. STELLAR GT: Can Hire CB Richard Ellis as Real Estate Broker ----------------------------------------------------------- The Honorable Paul Mannes has approved the application of Stellar GT TIC LLC and VFF TIC LLC to employ CB Richard Ellis Inc. as their real estate broker. CB Richard Ellis will market The Georgian for sale. About Stellar GT Stellar GT TIC LLC and VFF TIC LLC, owners of the Georgian apartments located at 8750 Georgia Avenue in Silver Spring, Maryland, filed for Chapter 11 bankruptcy protection (Bankr. D. Md. Case Nos. 11-22977 and 11-22980) on June 22, 2011. Judge Wendelin I. Lipp oversees the case. Michelle Maloney-Raymond is the case administrator. Matthew G. Summers, Esq., at Ballard Spahr LLP, serves as the Debtors' counsel. The Debtors negotiated a plan of reorganization before filing for Chapter 11. The proposed plan is premised on either (1) a sale of the project pursuant to an auction process or (2) a consensual restructuring of the secured debt. Broker CB Richard Ellis Inc. has been hired to conduct the sale. The auction rules provide that a first-round sealed bid would be required to be submitted by Aug. 24. The broker would then have until Sept. 5 to negotiate with the first-round bidders. Second- round sealed bids would be due Sept. 5. The highest second-round bid would be identified by Sept. 12, 2011. The highest bid would be submitted for approval at the confirmation hearing in October. Wells Fargo, the holder of a $207.6 million secured debt, can bid at the auction. The Lender is represented by Mark Taylor, Esq., at Kilpatrick Townsend & Stockton LLP, and Jantra Van Roy, Esq., at Zeichner Ellman & Krause LLP. W. Clarkson McDow, Jr., U.S. Trustee for Region 4, has not appointed an unsecured creditors' committee in the Debtors' cases. The U.S. Trustee will appoint an unsecured creditors' committee upon the request of an adequate number of eligible unsecured creditors. SUMMO INC: Seeks to Hire Daniel K. Usiak, Jr. as Counsel -------------------------------------------------------- Summo, Inc. seeks authority from the U.S. Bankruptcy Court for the District of Colorado to employ Daniel K. Usiak, Jr. as its counsel. Counsel is to perform all legal services necessary to assist the Debtor in its Chapter 11 case and will be paid according to the practice's hourly rates. The current hourly rates are: Daniel K. Usiak, Jr. $250 Paralegal $95 The Debtor informs the Court that Counsel was paid a $15,000 retainer to be used for payment of fees and costs incurred during the preparation and administration of the case. John Musso, the Debtor's owner, paid the retainer. Based on Mr. Usiak's verified statement, the Debtor believes that Counsel is a disinterested person as defined by Section 101(14) of the Bankruptcy Code. About Summo Inc. Pueblo, Colorado-based Summo Inc., fka Pinion Ridge, LLC, filed for Chapter 11 bankruptcy (Bankr. D. Colo. Case No. 11-28971) on Aug. 9, 2011. Judge Elizabeth E. Brown presides over the case. Daniel K. Usiak, Jr., Esq., at Usiak Law Firm, serves as the Debtor's bankruptcy counsel. The Debtor scheduled $15,845,500 in assets and $4,809,760 in debts. The petition was signed by John Musso, president. SUNNYVALE BUSINESS: Files Schedules of Assets And Liabilities ------------------------------------------------------------- Sunnyvale Business Square LLC filed with the U.S. Bankruptcy Court for the District of Arizona its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------------ ----------- A. Real Property $7,500,000 B. Personal Property 788,040 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $12,450,000 E. Creditors Holding Unsecured Priority Claims $84,088 F. Creditors Holding Unsecured Non-priority Claims ------------ ------------ TOTAL $8,288,040 $ 12,534,088 A full-text copy of the schedules and statements is available for free at http://bankrupt.com/misc/SUNNYVALEBUSINESS_sal.pdf 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. Attorney for Debtor is: 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 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. Secured Lender CCMS 2005-CD1 Baseline Road LLC is represented by lawyers at Ballard Spahr LLP. THINK3 INC: $1.05MM Loan from Gensym Cayman Gets Final Approval --------------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Texas authorized, on a final basis, Think3 Inc., to use cash collateral and incur postpetition secured indebtedness from Gensym Cayman, L.P. The lender agreed to provide a cash advance of up to $305,000 on an interim basis, and up to $1,050,000, pursuant to the DIP credit agreement to: (i) fund ongoing working capital and general corporate needs of the Debtor during the Chapter 11 case; (ii) pay the fees, costs, expenses, and disbursements of professionals retained by the Debtor or any statutory committees appointed in the Chapter 11 case; (iii) pay the costs and expenses of members of the Committees, including the U.S. Trustee and clerk fees; and (iv) pay to the lender the fees and expenses. As adequate protection for any diminution in value of the lenders' collateral, the Debtors will grant the lender security interests and superpriority claims, subject to certain carve out expenses. About think3 Think3 Inc. develops computer-aided design software. Think3 has been a debtor in corporate reorganization proceedings under the laws of Italy pending before the Court of Bologna since March 14, 2011. Dr. Andrea Ferri was appointed to act as trustee in the Italian Proceedings. Think3 sought Chapter 11 protection (Bankr. W.D. Tex. Case No. 11-11252) on May 18, 2011, in Austin, its hometown, three months after creditors filed an involuntary bankruptcy petition against the company in a court in Bologna, Italy. The company didn't oppose the involuntary bankruptcy. Rebecca Roof was appointed as chief restructuring officer. The Italian trustee filed a Chapter 15 petition (Bankr. W.D. Tex. Case No. 11-11925) for Think3 in bankruptcy court in Austin on Aug. 1, claiming she has the right to control the company's restructuring through the Italian court. Since the Italian bankruptcy was filed, there have been continuing disputes over the right to control the company's assets. ESW Capital LLC acquired Think3 in September. The primary debt is a $23 million tax liability in Italy. The Italian Trustee is represented by Duane Morris LLP. The Debtor disclosed $0 in assets and $45,447,716 in liabilities as of the Chapter 11 filing. Versata FZ-LLC, Versata Development Group, Inc., Versata Software, Inc., ESW Capital, LLC, the parent of Think3, and Gensym Cayman L.P., the DIP Lender, are represented by Fulbright & Jaworski L.L.P., and Morrison & Foerster LLP. THINK3 INC: Postpones Assets Sale Plea to This Month ---------------------------------------------------- Dr. Andrea Ferri, in his capacity as the putative foreign representative for Think3 Inc., asks the U.S. Bankruptcy Court for the Western District of Texas to: a. adjourn the hearing on the sale motion and escrow motion scheduled for Aug. 25, 2011, to a hearing date in September 2011, after the Court has had an opportunity to consider and rule on the relief sought in the Petition; b. consider this application on an expedited basis; and after a hearing on the application, a temporary restraining order or preliminary injunction order staying all proceedings in the instant chapter 11 case that will remain in place pending the Court's consideration of the Foreign Representative's request for entry of an order recognizing the Italian Proceeding as a foreign main proceeding and a short period thereafter, as necessary; c. establish contact with the Italian Court, in order to resolve pending matters and proceed on a coordinated basis. The Debtor's corporate reorganization proceedings under the laws of Italy are pending before the Court of Bologna, Italy. Dr. Ferri relates that Think3, after considerable litigation, has regained control over its intellectual property from Versata FZ- LLC through the Italian Proceedings. After failing in Italy, and in direct violation of a stay and injunction that is automatically in place under the Italian Bankruptcy Laws, Dr. Ferri continues, Versata commenced litigation against Think3 in the United States. Dr. Ferri explains that the sale and escrow motion hearing can be held after the recognition of the Italian Proceedings is granted. Dr. Ferri notes that Rebecca Roof, appointed chief restructuring officer, refused to grant an adjournment on consent that provides for hearings on the sale and escrow motions after the hearing on recognition. Dr. Ferri also believes that communication between the Court and the Italian Court will help resolve the problematic cross-border relationship that has permeated the restructuring process, and will at the same time make certain that the Court and the Italian Court are fully apprised of the requirements and matters that each Court has before it and is addressing. About think3 Think3 Inc. develops computer-aided design software. Think3 has been a debtor in corporate reorganization proceedings under the laws of Italy pending before the Court of Bologna since March 14, 2011. Dr. Andrea Ferri was appointed to act as trustee in the Italian Proceedings. Think3 sought Chapter 11 protection (Bankr. W.D. Tex. Case No. 11-11252) on May 18, 2011, in Austin, its hometown, three months after creditors filed an involuntary bankruptcy petition against the company in a court in Bologna, Italy. The company didn't oppose the involuntary bankruptcy. Rebecca Roof was appointed as chief restructuring officer. The Italian trustee filed a Chapter 15 petition (Bankr. W.D. Tex. Case No. 11-11925) for Think3 in bankruptcy court in Austin on Aug. 1, claiming she has the right to control the company's restructuring through the Italian court. Since the Italian bankruptcy was filed, there have been continuing disputes over the right to control the company's assets. ESW Capital LLC acquired Think3 in September. The primary debt is a $23 million tax liability in Italy. The Italian Trustee is represented by Duane Morris LLP. The Debtor disclosed $0 in assets and $45,447,716 in liabilities as of the Chapter 11 filing. Versata FZ-LLC, Versata Development Group, Inc., Versata Software, Inc., ESW Capital, LLC, the parent of Think3, and Gensym Cayman L.P., the DIP Lender, are represented by Fulbright & Jaworski L.L.P., and Morrison & Foerster LLP. THOMAS HICKS: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Thomas Hicks Landscaping, Inc. 1119 Chat Holley Drive Santa Rosa Beach, FL 32459 Bankruptcy Case No.: 11-31455 Chapter 11 Petition Date: August 30, 2011 Court: U.S. Bankruptcy Court Northern District of Florida (Pensacola) Debtor's Counsel: Bessie M. Creswell, Esq. BURR & FORMAN LLP P.O. Box 2287 Mobile, AL 36652-2287 Tel: (251) 344-5151 Fax: (251) 344-9696 E-mail: bcreswell@burr.com Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Thomas J. Hicks, president. TOUSA INC: Can Use Lenders' Cash Collateral Through Sept. 30 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of Florida has authorized TOUSA, Inc., and its debtor-affiliates, to access the cash collateral of their prepetition lenders through Sept. 30, 2011. The Debtors are authorized to use Cash Collateral for working capital and general corporate purposes that is not materially inconsistent with the budget provided that the Prepetition Secured Lenders are granted adequate protection. The Debtors' authorization to use Cash Collateral will terminate on the earlier to occur of (i) the Cash Collateral Termination Date or (ii) expiration of the Budget Period unless the Debtors will propose an extension of the Cash Collateral Period. On April 13, the Court authorized the Debtors, in an eighth final order, to use the lenders' cash until May 31. Citicorp North America, Inc., and Wells Fargo Bank, N.A., as first and second lien administrative agents to the prepetition lenders, consented to the Debtors use of the cash collateral. The Debtors would use the cash collateral to complete the implementation of their wind-down business plan and continue to fund the administrative expenses of the Chapter 11 cases. As adequate protection for any diminution in value of the lenders' collateral, the Debtors will grant the prepetition lenders replacement liens, adequate protection and super priority administrative expense. A copy of the cash collateral order is available at http://bankrupt.com/misc/TOUSA_cashcollorder.pdf About Tousa Inc. Headquartered in Hollywood, Florida, TOUSA, Inc. (Pink Sheets: TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A. Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark Homes L.P., TOUSA Homes Inc. and Newmark Homes Corp. is a leading homebuilder in the United States, operating in various metropolitan markets in 10 states located in four major geographic regions: Florida, the Mid-Atlantic, Texas, and the West. The Debtor and its debtor-affiliates filed for separate Chapter 11 protection on Jan. 29, 2008 (Bankr. S.D. Fla. Case No. 08-10928). The Debtors have selected M. Natasha Labovitz, Esq., Brian S. Lennon, Esq., Richard M. Cieri, Esq., and Paul M. Basta, Esq., at Kirkland & Ellis LLP; and Paul Steven Singerman, Esq., at Berger Singerman, to represent them in their restructuring efforts. Lazard Freres & Co. LLC is the Debtors' investment banker. Ernst & Young LLP is the Debtors' independent auditor and tax services provider. Kurtzman Cars LLC acts as the Debtors' Notice, Claims & Balloting Agent. TOUSA's direct subsidiary, Beacon Hill at Mountain's Edge LLC dba Eagle Homes, filed for Chapter 11 Protection on July 30, 2008 (Bankr. S.D. Fla. Case No. 08-20746). It estimated assets and debts of $1 million to $10 million in its Chapter 11 petition. The official committee of unsecured creditors has filed a proposed chapter 11 liquidating plan for Tousa. However, the committee said that it no longer intends to pursue approval of its liquidation plan because of the pending appeal of its fraudulent transfer case in the U.S. Court of Appeals for the Eleventh Circuit. A district court in February 2011 held that the bankruptcy judge was wrong in ruling that lenders who were paid off received fraudulent transfers when Tousa gave liens on subsidiaries' properties to bail out and refinance a joint venture. Daniel H. Golden, Esq., and Philip C. Dublin, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, represent the creditors committee. US FIDELIS: Can Use Lenders' Cash Collateral Through Sept. 30 ------------------------------------------------------------- Judge Charles E. Rendlen, III, of the U.S. Bankruptcy Court for the Eastern District of Missouri has authorized the Debtor to use the cash collateral of prepetition lender Mepco Finance Corporation in the operation of the Debtor's business and for payment of Chapter 11 expenses, including profession fees, in accordance with the budget. However, Judge Rendlen also denies all other requests. The counsel for the Official Committee of Unsecured Creditors and counsel for Mepco were unable to reach mutually acceptable language regarding the proposed order because a potential legal issue between the UCC and Mepco has come to light. The Bankruptcy Court has declined to intervene to resolve their drafting problem and will not consider competing versions of the proposed order. A copy of the cash collateral order is available at: http://bankrupt.com/misc/USFIDELIS_cashcollorder.pdf Wentzville, Missouri-based US Fidelis, Inc., was a marketer of vehicle service contracts developed by independent and unrelated companies. It stopped writing new business in December 2009. The Company filed for Chapter 11 bankruptcy protection (Bankr. E.D. Mo. Case No. 10-41902) on March 1, 2010. Brian T. Fenimore, Esq., and Crystanna V. Cox, Esq., at Lathrop & Gage L.C., in Kansas City, Mo.; and Robert E. Eggmann, Esq., and Thomas H. Riske, Esq., at Lathrop & Gage, in Clayton, Mo., assist the Debtor in its restructuring effort. According to the schedules, the Company had assets of $74,386,836, and total debts of $25,770,655 as of the petition date. Allison E. Graves, Esq., and Brian Wade Hockett, Esq., at Thompson Coburn LLP, in St. Louis, Mo., represent the Official Unsecured Creditors Committee. US POSTAL: Rep. Issa Launches SavingThePostalService.com -------------------------------------------------------- The Talk Radio News Service reports that Rep. Darrell Issa (R- Calif.) launched an interactive website Thursday with the sole purpose of saving a debilitating United States Postal Service. The news agency relates that SavingThePostalService.com allows visitors to see the facts about the financially insolvent U.S. Postal Service and offers them the opportunity to weigh in on which solutions Congress should pursue to address this issue. "The USPS is fast-approaching default and without serious reforms it will collapse and be unable to meet payroll as early as next year," the report quotes Rep. Issa as saying. "The American people will not accept the bailout of yet another failing institution which is why Congress must act to put the Postal Service on a sustainable course. Go to SavingThePostalService.com to learn more about the Postal Service, see our reforms and get involved in crafting your own solutions." According to the report, the chairman of the House Committee on Oversight and Government Reform, along with Rep. Dennis Ross (R- Fla.) began working towards making the USPS a solvent institution early this summer by introducing the Postal Reform Act of 2011. The Talk Radio News Service, citing the Post Master General, says the USPS will default on a multi-billion dollar payment to U.S. taxpayers by Sept. 30, 2011. The postal service is expected to lose $9 billion in FY2011, exceeding the $8.5 billion it lost in 2010, the report discloses. VERAX RESTAURANT: Case Summary & 21 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Verax Restaurant Group, Inc. dba Denny's Restaurant 8019 4760 E. Cesar Chavez Avenue Los Angeles, CA 90022 Bankruptcy Case No.: 11-47163 Chapter 11 Petition Date: August 31, 2011 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Richard M. Neiter Debtor's Counsel: Dennis E. McGoldrick, Esq. 350 S. Crenshaw Boulevard, Suite A207B Torrance, CA 90503 E-mail: dmcgoldricklaw@yahoo.com Scheduled Assets: $1,085,632 Scheduled Debts: $1,580,009 A list of the Company's 21 largest unsecured creditors filed together with the petition is available for free at: http://bankrupt.com/misc/cacb11-47163.pdf The petition was signed by Zinaida Pishik, president. VITRO SAB: Unit Files Schedules of Assets and Liabilities --------------------------------------------------------- Vitro America LLC filed with the U.S. Bankruptcy Court for the Northern District of Texas its schedules of assets and liabilities, and statements of financial affairs, disclosing: Name of Schedule Assets Liabilities ---------------- ------------ ----------- A. Real Property 7,401,547 B. Personal Property $79,620,380 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $13,323,959 E. Creditors Holding Unsecured Priority Claims $240,636,305 F. Creditors Holding Unsecured Non-priority Claims $1,237,003,159 ------------ -------------- TOTAL $87,021,927 $1,490,963,424 A full-text copy of the Schedules is available for free at http://bankrupt.com/misc/VITROAMERICA_sal.pdf About Vitro SAB Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is the largest manufacturer of glass containers and flat glass in Mexico, with consolidated net sales in 2009 of MXN23,991 million (US$1.837 billion). Vitro defaulted on its debt in 2009 and sought to restructure around US$1.5 billion in debt, including US$1.2 billion in notes. Vitro launched an offer to buy back or swap US$1.2 billion in debt from bondholders. The tender offer would be consummated with a bankruptcy filing in Mexico and Chapter 15 filing in the United States. Vitro said noteholders would recover as much as 73% by exchanging existing debt for cash, new debt or convertible bonds. Concurso Mercantil & Chapter 15 Proceedings Vitro SAB on Dec. 13, 2010, filed its voluntary petition for a pre-packaged Concurso Plan in the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon, commencing its voluntary concurso mercantil proceedings -- the Mexican equivalent of a prepackaged Chapter 11 reorganization. Vitro SAB also commenced parallel proceedings under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan on Dec. 13, 2010, to seek U.S. recognition and deference to its bankruptcy proceedings in Mexico. Early in January 2011, the Mexican Court dismissed the Concurso Mercantil proceedings. The judge said Vitro couldn't push through a plan to buy back or swap US$1.2 billion in debt from bondholders based on the vote of US$1.9 billion of intercompany debt when third-party creditors were opposed. Vitro as a result dismissed the first Chapter 15 petition following the ruling by the Mexican court. On April 12, 2011, an appellate court in Mexico reinstated the reorganization. Accordingly, Vitro SAB on April 14 re-filed a petition for recognition of its Mexican reorganization in U.S. Bankruptcy Court in Manhattan (Bankr. S.D.N.Y. Case No. 11-11754). In the present Chapter 15 case, the Debtor seeks to block any creditor suits in the U.S. pending the reorganization in Mexico. On June 29, 2011, Vitro Packaging de Mexico S.A. de C.V. commenced a voluntary judicial reorganization proceeding under the Ley de Concursos Mercantiles before the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon, the United Mexican States. On June 30, 2011, Vitro Packaging filed a chapter 15 petition (Bankr. N.D. Tex. Case No. 11-34224). Alejandro Francisco Sanchez-Mujica and Javier Arechavaleta Santos serve as Foreign Representatives of Vitro S.A.B. de C.V. and Vitro Packaging de Mexico S.A. de C.V. The Foreign Representatives are represented by David M. Bennett, Esq., Katharine E. Battaia, Esq., and Cassandra A. Sepanik, Esq., at Thompson & Knight LLP, and Andrew M. Leblanc, Esq., Risa M. Rosenberg, Esq., Thomas J. Matz, Esq., and Jeremy C. Hollembeak, Esq., at Milbank Tweed Hadley & McCloy LLP. Attorneys for the Ad Hoc Group of Vitro Noteholders are Jeff P. Prostok, Esq., and Lynda L. Lankford, Esq., at Forshey & Prostok, LLP, and Allan S. Brilliant, Esq., Benjamin E. Rosenberg, Esq., Craig P. Druehl, Esq., and Dennis H. Hranitzky, Esq., at Dechert LLP. Chapter 11 Proceedings A group of noteholders, namely Knighthead Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc., Davidson Kempner Distressed Opportunities Fund LP, and Brookville Horizons Fund, L.P., opposed the exchange. Together, they held US$75 million, or approximately 6% of the outstanding bond debt. The Noteholder group commenced involuntary bankruptcy cases under Chapter 11 of the U.S. Bankruptcy Code against Vitro Asset Corp. (Bankr. N.D. Tex. Case No. 10-47470) and 15 other affiliates on Nov. 17, 2010. Vitro engaged Susman Godfrey, L.L.P. as U.S. special litigation counsel to analyze the potential rights that Vitro may exercise in the United States against the ad hoc group of dissident bondholders and its advisors. A larger group of noteholders known as the Ad Hoc Group of Vitro Noteholders -- comprised of holders, or investment advisors to holders, which represent approximately US$650 million of the Senior Notes due 2012, 2013 and 2017 issued by Vitro -- was not among the Chapter 11 petitioners, although the group has expressed concerns over the exchange offer. The group says the exchange offer exposes Noteholders who consent to potential adverse consequences that have not been disclosed by Vitro. The group is represented by John Cunningham, Esq., and Richard Kebrdle, Esq. at White & Case LLP. The U.S. affiliates subject to the involuntary petitions are Vitro Chemicals, Fibers & Mining, LLC (Bankr. N.D. Tex. Case No. 10- 47472); Vitro America, LLC (Bankr. N.D. Tex. Case No. 10-47473); Troper Services, Inc. (Bankr. N.D. Tex. Case No. 10-47474); Super Sky Products, Inc. (Bankr. N.D. Tex. Case No. 10-47475); Super Sky International, Inc. (Bankr. N.D. Tex. Case No. 10-47476); VVP Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47477); Amsilco Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47478); B.B.O. Holdings, Inc. (Bankr. N.D. Tex. Case No. 10-47479); Binswanger Glass Company (Bankr. N.D. Tex. Case No. 10-47480); Crisa Corporation (Bankr. N.D. Tex. Case No. 10-47481); VVP Finance Corporation (Bankr. N.D. Tex. Case No. 10-47482); VVP Auto Glass, Inc. (Bankr. N.D. Tex. Case No. 10-47483); V-MX Holdings, LLC (Bankr. N.D. Tex. Case No. 10-47484); and Vitro Packaging, LLC (Bankr. N.D. Tex. Case No. 10-47485). A bankruptcy judge in Fort Worth, Texas, denied involuntary Chapter 11 petitions filed against four U.S. subsidiaries. On April 6, 2011, Vitro SAB agreed to put Vitro units -- Vitro America LLC and three other U.S. subsidiaries -- that were subject to the involuntary petitions into voluntary Chapter 11. The Texas Court on April 21 denied involuntary petitions against the eight U.S. subsidiaries that didn't consent to being in Chapter 11. The U.S. subsidiaries subsequently sold their businesses to an affiliate of Sun Capital Partners Inc. for US$55 million. Kurtzman Carson Consultants is the claims and notice agent to Vitro America, et al. Alvarez & Marsal North America LLC is the Debtors' operations and financial advisor. The official committee of unsecured creditors appointed in the Chapter 11 cases of Vitro America, et al., has selected Sarah Link Schultz, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Dallas, Texas, and Michael S. Stamer, Esq., Abid Qureshi, Esq., and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, as counsel. WASHINGTON MUTUAL: Judge Tosses Ex-Workers' Compensation Claims --------------------------------------------------------------- Samuel Howard at Bankruptcy Law360 reports that U.S. District Judge Richard A. Jones on Tuesday tossed a lawsuit brought by former Washington Mutual Bank NA employees alleging the Federal Deposit Insurance Corp. violated their employment contracts when it sold the defunct bank's assets in receivership to JPMorgan Chase NA in 2008. Judge Jones found that the plaintiffs -- more than 100 former WaMu workers -- were not entitled to large compensation payments under their employment agreements because those contracts were extinguished when the bank failed. About Washington Mutual Based in Seattle, Washington, Washington Mutual Inc. -- http://www.wamu.com/-- is a holding company for Washington Mutual Bank as well as numerous non-bank subsidiaries. Washington Mutual Bank was taken over on Sept. 25, 2008, by U.S. government regulators. The next day, WaMu and its affiliate, WMI Investment Corp., filed separate petitions for Chapter 11 relief (Bankr. D. Del. 08-12229 and 08-12228, respectively). WaMu owns 100% of the equity in WMI Investment. When WaMu filed for protection from its creditors, it disclosed assets of $32,896,605,516 and debts of $8,167,022,695. WMI Investment estimated assets of $500 million to $1 billion with zero debts. WaMu is represented by Brian Rosen, Esq., at Weil, Gotshal & Manges LLP in New York City; Mark D. Collins, Esq., at Richards, Layton & Finger P.A. in Wilmington, Del.; and Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver & Hedges, LLP. The Debtor tapped Valuation Research Corporation as valuation service provider for certain assets. Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Fled LLP in New York and David B. Stratton, Esq., at Pepper Hamilton LLP in Wilmington, Del., represent the Official Committee of Unsecured Creditors. Stephen D. Susman, Esq., at Susman Godfrey LLP and William P. Bowden, Esq., at Ashby & Geddes, P.A., represent the Equity Committee. The official committee of equity security holders also tapped BDO USA as its tax advisor. Stacey R. Friedman, Esq., at Sullivan & Cromwell LLP and Adam G. Landis, Esq., at Landis Rath & Cobb LLP in Wilmington, Del., represent JPMorgan Chase, which acquired the WaMu bank unit's assets prior to the Petition Date. On Jan. 7, 2011, the U.S. Bankruptcy Court for the District of Delaware entered a 107-page opinion determining that the global settlement agreement, among certain parties including WMI, the Federal Deposit Insurance Corporation and JPMorgan Chase Bank, N.A., upon which the Plan is premised, and the transactions contemplated therein, are fair, reasonable, and in the best interests of WMI. Additionally, the Opinion and related order denied confirmation, but suggested certain modifications to the Company's Sixth Amended Joint Plan of Affiliated Debtors that, if made, would facilitate confirmation. Washington Mutual has filed with the Bankruptcy Court a Modified Sixth Amended Joint Plan and a related Supplemental Disclosure Statement. The Company believes that the Modified Plan has addressed the Bankruptcy Court's concerns and looks forward to returning to the Bankruptcy Court to seek confirmation of the Modified Plan. WELLCARE HEALTH: S&P Withdraws 'B' Counterparty Credit Rating ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' counterparty credit rating on WellCare Health Plans Inc. Standard & Poor's then withdrew the rating at the company's request. The outlook prior to the withdrawal was positive. WYLE SERVICES: S&P Keeps B+ Corp. Credit Rating; Outlook Stable --------------------------------------------------------------- Standard & Poor's Ratings Services revised its rating outlook on El Segundo, Calif.-based Wyle Services Corp. to stable from negative. All ratings on the company and its debt issues, including the 'B+' corporate credit rating, remain unchanged. "The 'B+' rating on Wyle reflects modest profitability inherent in the government services business, budget reliance on the key U.S. federal government agencies, limited flexibility to pursue additional debt-financed acquisitions, and still-high leverage despite recent moderate reduction," said Standard & Poor's credit analyst David Tsui. "Solid positions in the niche government services market and predictable revenue streams based on a contractual backlog of business, as well as a more diversified customer base as a result of the CAS Group acquisition, partially offset these factors." Wyle provides contracting services, including research and development and engineering capabilities, along with information technology and program management and acquisition support solutions to U.S. federal government agencies, with a focus on serving the Navy and NASA. The acquisition of CAS in September 2010 adds an Army franchise to Wyle's portfolio, offering revenue diversification. The company's expertise in aerospace test and engineering services, in additional to longstanding contractual relationships with key government agencies, support its business profile. The combined company benefits from CAS's stronghold in Huntsville, Ala. As a result of the BRAC (Base Realignment and Closure) initiative to close a number of Army bases, several large government agencies will be relocated to Huntsville, creating local demand for contractors. Additionally, once severed from ITT, CAS should be able to benefit from resolution of OCI (Organizational Conflict of Interest) issues and will no longer have to limit or avoid systems engineering and technical assistance services (SETA) work related to ITT's product areas. Pro forma revenues for the combined company are approximately $1.1 billion. Wyle has high re-compete success (higher than 85%), offering significant revenue visibility. EBITDA margins have been consistent at about 8%, reflecting stable margins generated from cost-plus and time and materials contracts (which represent about 90% of the company's contract portfolio). Wyle's total debt (including capitalized operating leases) to EBITDA is in the low-6x area, including nine months of CAS operating results. "We expect the company's EBITDA to continue to benefit from the CAS acquisition, which is not predicated on synergies. We anticipate debt to EBITDA to be in the mid-5x area in the near term, which is commensurate with the rating. We have not incorporated the possibility of acquisitions funded from internally generated cash flow into our current rating," S&P stated. YRC WORLDWIDE: Board Approves Director Compensation Plan -------------------------------------------------------- The Board of Directors of YRC Worldwide Inc. approved the YRC Worldwide Inc. Director Compensation Plan, effective Aug. 30, 2011. All of the non-employee directors of the Company, which includes Raymond J. Bromark, Douglas A. Carty, Matthew A. Doheny, Robert L. Friedman, James E. Hoffman, Michael J. Kneeland, Harry J. Wilson and James F. Winestock, will participate in the Director Plan. The Director Plan provides for: (i) annual cash retainer of $75,000 for service on the Board ($125,000 for service as the Chairman of the Board), with additional retainers of $15,000 for service as the Audit/Ethics Committee Chairperson and $10,000 for other Committee Chairpersons; (ii) following (A) the completion of the reverse merger of the Company into a subsidiary of the Company in which the Company survives the merger, (B) the Board's adoption of a new equity incentive plan, and (C) the effective date of a reverse stock split of the Company's common stock, a grant of restricted stock units equal to $100,000 divided by $0.1134 (the conversion ratio of the Company's Series A Convertible Senior Secured Notes), which grant will be adjusted proportionately to reflect the reverse stock split; (iii) with respect to the period from Sept. 15, 2011, through the date of the annual stockholders' meeting held in 2012, a grant of RSUs equal to $83,333 divided by the 30 day average closing price preceding the date of grant, to be made on the first business day following the annual stockholders' meeting held in 2012; and (iv) on the first business day following the annual stockholders' meeting held in 2013 and annually each year thereafter, a grant of RSUs equal to $100,000 divided by the 30 day average closing price preceding the date of grant. No additional compensation will be paid for attendance or participation at Board or committee meetings. The Company currently intends to hold its 2011 annual stockholders' meeting on or about Nov. 30, 2011, at the Company's principal executive offices in Overland Park, Kansas. A full-text copy of the filing is available for free at: http://is.gd/1vEvQc About YRC Worldwide Headquartered in Overland Park, Kan., YRC Worldwide Inc. (NASDAQ: YRCW) -- http://www.yrcw.com/-- is a holding company that through wholly owned operating subsidiaries offers its customers a wide range of transportation services. These services include global, national and regional transportation as well as logistics. KPMG LLP's audit reports on the consolidated financial statements of YRC Worldwide Inc. and subsidiaries for 2009 and 2010 each contain an explanatory paragraph that states that the Company has experienced significant declines in operations, cash flows and liquidity and these conditions raise substantial doubt about the Company's ability to continue as a going concern. The Company's balance sheet at June 30, 2011, showed $2.59 billion in total assets, $2.91 billion in total liabilities and a $328.79 million in shareholders' deficit. * * * In January 2011, Standard & Poor's Ratings Services placed its 'CCC-' corporate credit rating on YRC Worldwide Inc. (YRCW) on CreditWatch developing. At the same time, S&P is withdrawing the existing issue level ratings on Yellow Corp.'s senior unsecured debt, given the negligible amounts outstanding. "The ratings on Overland Park, Kan.-based YRCW reflect its near- term liquidity challenges, meaningful off-balance-sheet contingent obligations related to multiemployer pension plans, as well as its participation in the competitive, capital-intensive, and cyclical trucking industry," said Standard & Poor's credit analyst Anita Ogbara. "YRCW's substantial (albeit deteriorating) market position in the less-than-truckload (LTL) sector, which has high barriers to entry, partially offsets these characteristics. We characterize YRCW's business profile as weak, financial profile as highly leveraged, and liquidity as weak." In the Aug. 2, 2011, edition of the TCR, Moody's Investors Service revised YRC Worldwide Inc.'s Probability of Default Rating ("PDR") to Caa2\LD ("Limited Default") from Caa3 in recognition of the agreed debt restructuring which will result in losses for certain existing debt holders. In a related action Moody's has raised YRCW's Corporate Family Rating to Caa3 from Ca to reflect modest but critical improvements in the company's credit profile that should result from its recently-completed financial restructuring. The positioning of YRCW's PDR at Caa2\LD reflects the completion of an offer to exchange a substantial majority of the company's outstanding credit facility debt for new senior secured credit facilities, convertible unsecured notes, and preferred equity, which was completed on July 22, 2011. As reported by the TCR on May 5, 2011, Fitch Ratings downgraded YRC's Issuer default rating to 'C' from 'CC'; Secured bank credit facility rating downgraded to 'CCC/RR2' from 'B-/RR2'; and Senior unsecured rating affirmed at 'C/RR6'. In addition, Fitch has removed YRCW's ratings from Rating Watch Negative. Fitch said that although it appears increasingly likely that the company will successfully complete the restructuring, until the transactions constituting the restructuring close, which is not anticipated until late July 2011, there exists a potential for the transaction to fail, in which case Fitch expects the company would be forced to file for Chapter 11 bankruptcy protection. ZALE CORP: Incurs $32.6 Million Net Loss in July 31 Quarter ----------------------------------------------------------- Zale Corporation reported a net loss of $32.64 million on $377.26 million of revenue for the three months ended July 31, 2011, compared with a net loss of $28.52 million on $345 million of revenue for the same period during the prior year. The Company also reported a net loss of $112.30 million on $1.74 billion of revenue for the twelve months ended July 31, 2011, compared with a net loss of $93.67 million on $1.61 billion of revenue during the prior year. The Company's balance sheet at July 31, 2011, showed $1.18 billion in total assets, $977.07 million in total liabilities and $212.82 million in total stockholders' investment. "In fiscal 2011, we made substantial progress in the multi-year initiative to return to profitability," commented Theo Killion, chief executive officer. "The strength of our assortment, marketing and field organization position us well to navigate through the current economic environment." "This quarter represents the third consecutive quarter of positive same store sales," commented Matt Appel, chief administrative officer and chief financial officer. "Despite the headwinds imposed by volatility in commodity markets and the overall economy, our gross margin performance in the quarter and full year reflects the traction we are gaining in the marketplace." A full-text copy of the press release announcing the financial results is available for free at http://is.gd/vjKIlS About Zale Corporation Based in Dallas, Texas, Zale Corporation (NYSE: ZLC) -- http://www.zalecorp.com/-- is a specialty retailer of diamonds and other jewelry products in North America, operating approximately 1,900 retail locations throughout the United States, Canada and Puerto Rico, as well as online. Zale Corporation's brands include Zales Jewelers, Zales Outlet, Gordon's Jewelers, Peoples Jewellers, Mappins Jewellers and Piercing Pagoda. Zale also operates online at http://www.zales.com/, http://www.zalesoutlet.com/, http://www.gordonsjewelers.com/and http://www.pagoda.com/ Zale reported a net loss of $93.67 million on $1.62 billion of revenues for the year ended July 31, 2010, compared with a net loss of $166.35 million on $1.78 billion of revenues for the same period a year ago. As reported by the Troubled Company Reporter on February 10, 2010, The Deal.com's Sara Behunek reported that analysts said bankruptcy looms for Zale if it fails to restructure its debt and put in place a solid merchandising strategy. * Berger Singerman Adds Hahn & Hessen Bankruptcy Pro ---------------------------------------------------- Christopher A. Jarvinen has joined the Florida business law firm Berger Singerman as a Shareholder and member of the firm's Business Reorganization Team. He is resident in the firm's Miami office. Mr. Jarvinen was most recently a partner with Hahn & Hessen LLP in New York, and prior to that, he was an associate at Paul, Weiss, Rifkind, Wharton & Garrison LLP and the former Kronish Lieb Weiner & Hellman LLP. Jarvinen's practice focuses on corporate reorganization and creditors' rights. For over a decade, he has represented debtors, official and unofficial committees and significant creditors in complex chapter 11 corporate restructurings, chapter 15 cases and other cross-border insolvency matters, out-of-court restructurings and bankruptcy-related litigation. "We are delighted that Christopher has joined our team," said Paul Steven Singerman, Co-CEO of Berger Singerman. "In addition to bringing an extensive background in corporate reorganization, Christopher possesses a unique depth of cross-border experience with Brazil and Argentina that will be most helpful to some or our clients, as well as potential clients and to our firm's efforts to increase our visibility in matters involving the South American market." Among other professional activities, Mr. Jarvinen is a member of the executive advisory board of the Caribbean Insolvency Symposium, one of the annual flagship conferences of the American Bankruptcy Institute. He also serves on the board of editors of INTERNATIONAL CORPORATE RESCUE, the U.K.-based bi-monthly, global journal providing value to practitioners on a wide range of international corporate rescue and insolvency issues. Mr. Jarvinen is also a co-founder of the Turnaround Management Association - Brazil (TMA-Brazil) and serves as its appointed ambassador to the TMA in the United States. Mr. Jarvinen is a graduate of Boston College Law School, has obtained degrees from Brown, Harvard, and Yale universities and the graduate business school of the Funda‡ao Getulio Vargas located in Sao Paulo, Brazil and has also attended Columbia University. He is admitted to practice in Florida, New York, and Massachusetts and before the federal courts located in the First, Second and Eleventh Circuits. Berger Singerman is a Florida business law firm with more than 60 attorneys working out of offices in Boca Raton, Fort Lauderdale, Miami and Tallahassee. Members of the firm have expertise in all areas of commercial law, including banking, creditors' rights, business reorganization, bankruptcy, corporate & securities, dispute resolution and litigation, white collar crime, real estate, environmental and land use, health care, tax, estate planning, and probate. * BOND PRICING -- For The Week From Aug. 29 to Sept. 2, 2011 ------------------------------------------------------------ Company Coupon Maturity Bid Price ------- ------ -------- --------- ACARS-GM 8.10 6/15/2024 1.00 AHERN RENTALS 9.25 8/15/2013 40.40 AMBAC INC 5.95 12/5/2035 14.25 AMBAC INC 6.15 2/7/2087 1.48 AMBAC INC 7.50 5/1/2023 10.00 AMBAC INC 9.38 8/1/2011 10.00 AMBAC INC 9.50 2/15/2021 14.13 AMER GENL FIN 8.10 9/15/2011 99.00 APU-CALL09/11 7.13 5/20/2016 104.00 BANK NEW ENGLAND 8.75 4/1/1999 14.00 BANK NEW ENGLAND 9.88 9/15/1999 14.00 BANKUNITED FINL 6.37 5/17/2012 7.10 BLOCKBUSTER INC 11.75 10/1/2014 3.75 C-CALL09/11 5.50 11/15/2029 100.00 CAPITAL ONE FINL 5.70 9/15/2011 100.00 CAPMARK FINL GRP 5.88 5/10/2012 56.50 CIRCUS & ELDORAD 10.13 3/1/2012 80.90 CONAGRA INC 6.75 9/15/2011 100.17 DECODE GENETICS 3.50 4/15/2011 0.50 DIRECTBUY HLDG 12.00 2/1/2017 34.00 DIRECTBUY HLDG 12.00 2/1/2017 35.00 DUNE ENERGY INC 10.50 6/1/2012 60.49 EDDIE BAUER HLDG 5.25 4/1/2014 5.63 ENERGY CONVERS 3.00 6/15/2013 46.00 EVERGREEN SOLAR 4.00 7/15/2013 6.10 EVERGREEN SOLAR 4.00 7/15/2020 13.00 EVERGREEN SOLAR 13.00 4/15/2015 59.75 FAIRPOINT COMMUN 13.13 4/2/2018 1.25 FREDDIE MAC 2.18 2/19/2014 104.11 GLB AVTN HLDG IN 14.00 8/15/2013 65.00 GLOBALSTAR INC 5.75 4/1/2028 59.75 GREAT ATLA & PAC 6.75 12/15/2012 21.00 HARRY & DAVID OP 9.00 3/1/2013 2.00 HAWKER BEECHCRAF 8.50 4/1/2015 45.75 HAWKER BEECHCRAF 9.75 4/1/2017 38.00 HCP INC 5.95 9/15/2011 100.00 HORIZON LINES 4.25 8/15/2012 70.05 LEHMAN BROS HLDG 3.00 10/28/2012 25.13 LEHMAN BROS HLDG 3.00 11/17/2012 24.25 LEHMAN BROS HLDG 4.70 3/6/2013 21.00 LEHMAN BROS HLDG 4.80 2/27/2013 25.50 LEHMAN BROS HLDG 4.80 3/13/2014 24.00 LEHMAN BROS HLDG 5.00 1/22/2013 25.75 LEHMAN BROS HLDG 5.00 2/11/2013 23.50 LEHMAN BROS HLDG 5.00 3/27/2013 21.50 LEHMAN BROS HLDG 5.00 8/3/2014 25.30 LEHMAN BROS HLDG 5.00 8/5/2015 22.00 LEHMAN BROS HLDG 5.10 1/28/2013 21.63 LEHMAN BROS HLDG 5.15 2/4/2015 25.00 LEHMAN BROS HLDG 5.25 2/6/2012 23.00 LEHMAN BROS HLDG 5.25 1/30/2014 24.25 LEHMAN BROS HLDG 5.25 2/11/2015 25.25 LEHMAN BROS HLDG 5.50 4/4/2016 23.00 LEHMAN BROS HLDG 5.50 2/19/2018 21.63 LEHMAN BROS HLDG 5.55 2/11/2018 21.63 LEHMAN BROS HLDG 5.63 1/24/2013 26.00 LEHMAN BROS HLDG 5.70 1/28/2018 22.13 LEHMAN BROS HLDG 5.75 5/17/2013 24.00 LEHMAN BROS HLDG 5.88 11/15/2017 22.50 LEHMAN BROS HLDG 6.00 7/19/2012 24.50 LEHMAN BROS HLDG 6.00 2/12/2018 21.50 LEHMAN BROS HLDG 6.20 9/26/2014 23.00 LEHMAN BROS HLDG 6.63 1/18/2012 22.50 LEHMAN BROS HLDG 7.00 6/26/2015 23.50 LEHMAN BROS HLDG 7.00 12/18/2015 25.63 LEHMAN BROS HLDG 7.00 4/16/2019 19.00 LEHMAN BROS HLDG 8.05 1/15/2019 20.80 LEHMAN BROS HLDG 8.50 8/1/2015 23.00 LEHMAN BROS HLDG 8.50 6/15/2022 22.38 LEHMAN BROS HLDG 8.80 3/1/2015 24.50 LEHMAN BROS HLDG 9.00 3/7/2023 19.78 LEHMAN BROS HLDG 9.50 1/30/2023 22.63 LEHMAN BROS HLDG 9.50 2/27/2023 21.25 LEHMAN BROS HLDG 10.00 3/13/2023 25.13 LEHMAN BROS HLDG 10.38 5/24/2024 23.50 LEHMAN BROS HLDG 11.00 6/22/2022 23.50 LEHMAN BROS HLDG 11.00 7/18/2022 24.50 LEHMAN BROS HLDG 11.00 3/17/2028 25.50 LEHMAN BROS HLDG 11.50 9/26/2022 21.50 LEHMAN BROS HLDG 18.00 7/14/2023 25.75 LEHMAN BROS INC 7.50 8/1/2026 15.00 LIFEPT VILGE 8.50 3/19/2013 49.50 LOCAL INSIGHT 11.00 12/1/2017 2.25 MAJESTIC STAR 9.75 1/15/2011 18.00 MCMORAN EXPLORAT 5.25 10/6/2011 100.89 MCMORAN EXPLORAT 5.25 10/6/2011 96.61 MDT-CALL09/11 1.25 9/15/2021 99.00 MGIC INVT CORP 5.63 9/15/2011 99.50 MOHEGAN TRIBAL 8.00 4/1/2012 75.25 NEBRASKA BOOK CO 8.63 3/15/2012 61.25 NEBRASKA BOOK CO 10.00 12/1/2011 93.30 NEWPAGE CORP 10.00 5/1/2012 12.00 NEWPAGE CORP 12.00 5/1/2013 1.50 PMI CAPITAL I 8.31 2/1/2027 9.00 PMI GROUP INC 6.00 9/15/2016 26.50 RASER TECH INC 8.00 4/1/2013 29.76 RESTAURANT CO 10.00 10/1/2013 10.00 RIVER ROCK ENT 9.75 11/1/2011 80.20 S0-CALL09/11 5.50 12/15/2028 99.61 SBARRO INC 10.38 2/1/2015 6.80 SO-CALL09/11 5.40 3/1/2033 100.20 TEXAS COMP/TCEH 7.00 3/15/2013 29.00 TEXAS COMP/TCEH 10.25 11/1/2015 37.88 THORNBURG MTG 8.00 5/15/2013 12.00 TIMES MIRROR CO 7.25 3/1/2013 44.90 TOUSA INC 9.00 7/1/2010 15.00 TRICO MARINE 3.00 1/15/2027 1.25 TRICO MARINE SER 8.13 2/1/2013 4.00 VIRGIN RIVER CAS 9.00 1/15/2012 51.00 WCI COMMUNITIES 4.00 8/5/2023 1.57 WESCO INTL 1.75 11/15/2026 89.00 WILLIAM LYON INC 7.50 2/15/2014 23.10 WILLIAM LYON INC 10.75 4/1/2013 27.00 WILLIAM LYONS 7.63 12/15/2012 24.25 WINDERMERE BAPT 7.70 5/15/2012 18.00 ********* 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 ***