/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/110913.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, September 13, 2011, Vol. 15, No. 254 Headlines 4KIDS ENTERTAINMENT: PNC Financial No Longer 5% Shareholder III TO I MARITIME: McGladrey & Pullen Raises Going Concern Doubt AE BIOFUELS: Keyes Marketing Pact Amended; CEO Has 3-Yr. Contract AEROGROW INTERNATIONAL: Posts $1.5-Mil. Net Loss in June 30 Qtr. AIG INC: Fitch Puts Rating on Three Class Debentures at Low-B AIRPLAY DIRECT: Involuntary Chapter 11 Case Summary AMBASSADORS INTERNATIONAL: Plan Disclosures Hearing on Sept. 27 ATL 2130: Case Summary & 8 Largest Unsecured Creditors BAKERSFIELD ASCENT: Case Summary & 16 Largest Unsecured Creditors BANK OF AMERICA: To Cut $5BB in Annual Costs & Slash 30T Jobs BEAR ISLAND: Plan Outline Hearing Scheduled for Oct. 5 BHI EXCHANGE: S&P Gives 'B' Corp. Credit Rating; Outlook Stable BLUE HERON: Trustee Hires CB Richard Ellis to Market 23-Acre Site BROADWAY/WORKMAN LLC: Case Summary & Largest Unsecured Creditor BUCKTOWN STATION: May Use PNC Collateral to Pay 50% of Lawyer Fees CABINET AND BATH: Case Summary & 20 Largest Unsecured Creditors CAPITOL CITY: Eight Directors Elected at Annual Meeting CAROLINA OIL: Case Summary & 19 Largest Unsecured Creditors CATHOLIC CHURCH: Insurers Ordered to Pay Share of Wilm. Settlement CB HOLDINGS: Wants Court to Extend Plan Filing Deadline to Dec. 12 CB HOLDING: Court Sets Oct. 10, 2011 Claims Bar Date CITIZENS DEVELOPMENT: Creditors Must File Claims by Sept. 30 CLAUDIO OSORIO: Auction for Miami Beach Mansion Slated for Nov. 3 COMPOSITE TECHNOLOGY: Has Deal With Committee for Weiss as CRO COMPREHENSIVE CARE: Issues $1.8MM Promissory Notes to Investors COMPREHENSIVE CARE: PNC Financial Ceases to Hold 5% Equity Stake COMPREHENSIVE CARE: Bernard Sherman Holds 9.6% Equity Stake CORNERSTONE BANCSHARES: Ten Directors Elected at Annual Meeting CRAIG WASHINGTON: U.S. Gov't May Foreclose on 3 Real Properties D & L EQUIPMENT: Dist. Ct. Says Collateral Description Sufficient DE LA ROSA: Case Summary & 8 Largest Unsecured Creditors DIGITAL REALTY: Fitch Puts Rating on $607 Million Stock at 'BB+' DYNEGY INC: Holdings Acquires Direct Ownership of Dynegy Coal ELIZABETH MITCHELL: Bankruptcy Court Won't Reopen Chapter 7 Case ENERGY EDGE: Corrects Form 10-Q; Posts $32,200 1st Qtr. Net Loss ENVIRONMENTAL SOLUTIONS: Posts $3.9 Million Net Loss in Q2 2011 EPICEPT CORP: Okayed for Primary Listing on Nasdaq OMX EVERGREEN SOLAR: Wants to Hire UBS Securities as Investment Banker EVERGREEN SOLAR: Court OKs Bingham McCutchen as Counsel EVERGREEN SOLAR: Court OKs Hilco as Marketing & Sales Agent EVERGREEN SOLAR: Court OKs Pachulski Stang as Co-Counsel EVERGREEN SOLAR: Court OKs Zolfo Cooper as Financial Advisor EXPERT ROOFING: Files for Chapter 13 Bankruptcy Protection FAIRPOINT COMMUNICATIONS: To Slash 400 Jobs in Coming Months FAIRPOINT COMMUNICATIONS: Moody's Says Reductions Credit Positive FAITH CHRISTIAN: Plan Outline Hearing Scheduled for Oct. 4 FANNIE MAE: Settlement With Regulators Said to Be Near FIREKEEPERS DEVELOPMENT: S&P Affirms 'B+' Issuer Credit Rating FOGO DE CHAO: S&P Gives 'B' Corp. Credit Rating; Outlook Stable FREDDIE MAC: Settlement With Regulators Said to Be Near GARLOCK SEALING: Seeks to Terminate DIP Financing with BoA GENTA INC: Has 429.4 Million Outstanding Common Shares GEO POINT: Posts $380,500 Net Loss in June 30 Quarter GEORGE MASON: Case Summary & 20 Largest Unsecured Creditors GIORDANO'S ENTERPRISES: Gino's Owner Plans to Bid for Assets GRAHAM PACKAGING: Suspending Filing of Reports with SEC GRAMERCY CAPITAL: Announces Settlement of $549.7MM Mezzanine Loans GREAT ATLANTIC: Shareholder Claims Execs. Hushed Faulty Finances GWINNETT PLACE: Voluntary Chapter 11 Case Summary HD SUPPLY: Incurs $101 Million Second Quarter Net Loss HD SUPPLY: Awarded $23 Million Damages in Andritz Litigation HEARUSA INC: Posts $1.8-Mil. Net Loss in Qtr. Ended July 2 HIGHER HOPE: Case Summary & 3 Largest Unsecured Creditors HOMELAND SECURITY: Forbearance From YA Global Expires Tomorrow HOVNANIAN ENTERPRISES: Moody's Cuts Corp. Family Rating to 'Caa2' HOVNANIAN ENTERPRISES: Incurs $50.9MM Net Loss in July 31 Quarter HUDSON HEALTHCARE: Proposes Settlement With Creditors ICAD INC: Gets Nasdaq Letter on Non-Compliance With Minimum Bid IL FORNAIO: S&P Gives 'B+' Corp. Credit Rating; Outlook Stable INDIANA EQUITY: Has Access to Fannie Cash Collateral Until Oct. 31 INFUSION BRANDS: Sells $1 Million Preferred Shares and Warrants INSIGHT PHARMACEUTICALS: Moody's Gives 'B2' Corp. Family Rating INT'L RARITIES: Federal Agents Raid Minneapolis Offices INTELLIGENT COMMUNICATION: Reports $2.4MM Net Income in 2nd Qtr. INTELSAT SA: Sees $725MM-$800MM 2011 Total Capital Expenditures J.C. EVANS: U.S. Trustee Appoints 7-Member Creditor's Panel JCK HOTELS: Hearing on Case Dismissal Scheduled for Sept. 15 JIREH LEASING: Voluntary Chapter 11 Case Summary JOSEPH BORGES: Ag New Mexico Has Interest in CWT Funds KEELEY AND GRABANSKI: 8th Cir. BAP Affirms Trustee Appointment LAS VEGAS MONORAIL: Bondholders Have Tentative Deal LEE ENTERPRISES: Pushes Back Due Date of $864 Million Debt LEHR CONSTRUCTION: Trustee Can Retain Davis Graber as Accountants LEHR CONSTRUCTION: Marotta Gund OK'd as Trustee's Fin'l Advisor LESARRA ATTACHED: Case Conversion Hearing Rescheduled for Sept. 28 LEXINGTON HOLDINGS: Case Summary & 13 Largest Unsecured Creditors LIONCREST TOWERS: Hearing on Wells Fargo Cash Use Continued Today LIONCREST TOWERS: Hearing on Plan Disclosures Today LOS ANGELES DODGERS: Files Schedules of Assets and Liabilities LOS ANGELES SYNDICATE: Posts $47,200 Net Loss in Second Quarter M WAIKIKI: Replaces Marriott With New Management Company MACCO PROPERTIES: Trustee Taps Sperry Van Ness as Listing Broker MADDEN CORPORATION: Case Summary & 11 Largest Unsecured Creditors MARCO POLO: Creditors Blast DIP Financing as Inside Job MARFIG ALIMENTOS: High Leverage Cues Fitch to Hold Low-B Ratings MARONDA HOMES: Can Continue Using Lenders' Cash Until Nov. 10 MERCED FALLS: Court Authorizes Aherton & Assoc. as Accountants MERCED FALLS: Hires Walter & Wilhelm as Bankruptcy Counsel MERUELO MADDUX: Former CEO, President Want $3MM in Unpaid Wages MITRAN INC: Voluntary Chapter 11 Case Summary MOHEGAN TRIBAL: Mario Kontomerkos Appointed as CFO MSR RESORT: Settlement Deal on Club Membership Agreements OK'd MSR RESORT: Miller Buckfire to Receive $2MM as Partial Settlement NEBRASKA BOOK: Committee Can Hire Lowenstein Sandler as Co-Counsel NEBRASKA BOOK: Creditors Panel Taps Mesirow Financial as Advisors NEBRASKA BOOK: Can Hire Deloitte & Touche as Independent Auditors NEBRASKA BOOK: Committee Can Hire Stevens & Lees as Co-Counsel NEW HOPE: U.S. Trustee Wants Case Converted to Ch. 7 Liquidation NEW JERSEY DEVILS: Missed Sept. 1 Loan Payment; Bankruptcy Looms NEXITY FINANCIAL: U.S. Trustee Directed to Name Chapter 7 Trustee NICHOLAS NARDUCCI: Seeks to Restructure Debts Under Bankruptcy OPTI CANADA: Alberta Court Sanctions CCAA Master Plan OTTILIO PROPERTIES: Has Until Sept. 16 to File Schedules PALISADES MEDICAL: Moody's Affirms 'Ba2' Rating on $38.5-Mil. Debt PARKWOOD HOSPITALITY: Case Summary & 20 Largest Unsec Creditors PERKINS & MARIE: Files Schedules of Assets and Liabilities PERKINS & MARIE: Lender Counsel Paul Hastings Changes Firm Name PETER BORLO: Dist. Ct. Dismisses Suit v. Navy Federal Credit Union PHILADELPHIA ORCHESTRA: Mediation on Union Matters Begins Sept. 15 PICHI'S INC: Chapter 11 Case Now Assigned to Hon. Edward A. Godoy PICHI'S INC: Charles A. Cuprill Approved as Bankruptcy Counsel PICHI'S INC: Can Hire Luis R. Carrasquillo as Financial Consultant PICHI'S INC: Taps Manuel A. Nunez for Labor Relations Matters PREMIER GOLF: Creditor Says Vance's Retention is Not Plan Related PREMIER TRAILER: DIP Loan, Cash Collateral Hearing Set for Oct. 3 PREMIER TRAILER: Wants More Time to File Schedules PRESIDENTIAL REALTY: Receives Delisting Notice From NYSE AMEX PURSELL HOLDINGS: Lawson Bank Withdraws Motion for Stay Relief QUANTUM FUEL: SPI to Buy 100% of Zephyr Shares for C$2.5 Million QUANTUM FUEL: To Offer $75 Million of Securities QUINCY MEDICAL: Can Access Cash Collateral Until November 15 RCG FOODS: Case Summary & 17 Largest Unsecured Creditors RCLC INC: Plan Confirmed; Anticipates Sept. 15 Plan Effective Date ROTECH HEALTHCARE: James Flynn Discloses 5% Equity Stake ROUND TABLE: To Hire Cooper White for Franchise Litigation ROUND TABLE: Taps Meyers Harrison as Financial Consultant SAGEFIELD LLC: Voluntary Chapter 11 Case Summary SALPARE BAY: Court Confirms Third Amended Chapter 11 Plan SBARRO INC: Wins Judge Nod to Auction Assets SEAVIEW PLACE: Court Approves Oxtal Real Estate as Appraiser SEAVIEW PLACE: Wants Secured Status of Gulf Contractors' Claim SGTB LODGINGS: Voluntary Chapter 11 Case Summary SHAMROCK-SHAMROCK: Taps The Temples Company as Lease Broker SHAMROCK-SHAMROCK INC: Kimberly Rezanka OK'd for State Litigation SHAW GROUP: Moody's Says Rating Unaffected by Westinghouse Sale SHELL KNOB: Voluntary Chapter 11 Case Summary SHER INCORPORATED: Case Summary & 5 Largest Unsecured Creditors SHILO INN: Withdraws Motions to Extend Exclusivity Periods SHILOH INN: Court Continues Disclosures Hearing to Nov. 10 SILVERLAKE LLC: Voluntary Chapter 11 Case Summary SINCLAIR BROADCAST: Inks Pact to Buy Four Points for $200 Million SMART ONLINE: Sells Add'l $500,000 Convertible Note Due 2013 SOLAR THIN: Updates Status of Business with SEC STILLWATER INVESTMENT: Case Summary & 6 Largest Unsec Creditors SUGARLEAF TIMBER: Court Approves Brennan Manna as Main Counsel SUGARLEAF TIMBER: Hires Broom Moody as Property Appraiser SUNSHINE HOSPITALITY: Case Summary & 7 Largest Unsecured Creditors SUSTAINABLE ENVIRONMENTAL: Amends WES Technology Purchase Pact SWADENER INVESTMENT: Can Borrow $225,740 to Pay Ad Valorem Taxes TEN X: Can Access Cole Taylor's Cash Collateral Until Sept. 30 TENET HEALTHCARE: BlackRock Discloses 11% Equity Stake TENNVADA HOLDINGS: Case Summary & 5 Largest Unsecured Creditors TFF INCORPORATED: Case Summary & 13 Largest Unsecured Creditors THORNBURG MORTGAGE: Bank of America Asks Court to Dismiss Suit TIEN SHAN: Case Summary & 5 Largest Unsecured Creditors TITANIUM GROUP: Posts HK$644,900 Net Loss in Fiscal Q1 TRACY BROADCASTING: Dist. Ct. Affirms Ruling Against Bank's Lien TRIPLE O: Voluntary Chapter 11 Case Summary TUBE CITY: S&P Puts 'B+' Corp. Credit Rating on Watch Positive UNI-PIXEL INC: Appoints Former Samsung Sr. VP Seong Shin as COO US FIDELIS: Creditors Sue Mepco Over $57 Million Claim USEC INC: To Hold Advisory Votes on Exec. Compensation Annually VENTANA HILLS: Court Confirms Anglo-Backed Reorganization Plan WASTE2ENERGY HOLDINGS: Executives Balk at Call for Trustee WECK CORP: Court Confirms Liquidating Plan WEST CORP: Files 7th Amendment to Form S-1 Registration Statement WHITE BIRCH: S&P Withdraws 'D' Corporate at Company's Request WOLF HOLLOW: S&P Withdraws 'CCC+' Rating on $260-Mil. Sr. Facility WOLF MOUNTAIN: Disclosure Statement Hearing Set for Sept. 14 WYSONG & MILES: Bankr. Court Rules on Reedy Fork's Cleanup Claims * Foley Adds 3 Bankruptcy Partners in San Diego * Large Companies With Insolvent Balance Sheets ********* 4KIDS ENTERTAINMENT: PNC Financial No Longer 5% Shareholder ----------------------------------------------------------- The PNC Financial Services Group, Inc., PNC Bancorp, Inc., and PNC Bank, National Association disclose that as of Sept. 1, 2011, they have ceased to beneficially own more than 5% of the common stock of 4Kids Entertainment, Inc. A copy of the Final Amendment to Schedule 13G is available at: http://is.gd/kPe6bD About 4Kids Entertainment New York-based 4Kids Entertainment, Inc., dba 4Kids, is an entertainment and media company specializing in the youth oriented market, with operations in these business segments: (i) licensing, (ii) advertising and media broadcast, and (iii) television and film production/distribution. The parent entity, 4Kids Entertainment, was organized as a New York corporation in 1970. The principal driver for filing the Chapter 11 cases is the need to protect 4Kids' most valuable asset -- its rights under an exclusive license relating to the popular Yu-Gi- Oh! ("YGO") series of animated television programs -- from efforts by the licensor, a consortium of Japanese companies, to allegedly wrongfully terminate the license and force 4Kids out of business. 4Kids Entertainment, along with affiliates, filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-11607) on April 6, 2011. Kaye Scholer LLP is the Debtors' restructuring counsel. Epiq Bankruptcy Solutions, LLC, is the Debtors' claims and notice agent. BDO Capital Advisors, LLC, is the financial advisor and investment banker. EisnerAmper LLP fka Eisner LLP serves as auditor and tax advisor. 4Kids Entertainment, Inc., disclosed $78,397,971 in assets and $86,515,395 in liabilities as of the Chapter 11 filing. On July 8, 2011, Tracy Hope Davis, the U.S. Trustee for Region 2, appointed three members to the official committee of unsecured creditors in the Chapter 11 cases. Hahn & Hessen LLP serves as counsel to the Committee. III TO I MARITIME: McGladrey & Pullen Raises Going Concern Doubt ---------------------------------------------------------------- III to I Maritime Partners Cayman I, L.P., filed on Aug. 31, 2011, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2010. McGladrey & Pullen, LLP, in Dallas, Tex., expressed substantial doubt about III to I Maritime Partners Cayman I's ability to continue as a going concern. The independent auditors noted that the Partnership has experienced significant net losses as well as negative cash flows since its inception in October 2006, and is in default of its senior loan agreement. During March 2011, the Partnership failed to make quarterly payments due under its senior loan with Nord/LB, through which we financed its anchor-handling tug supply ("AHTS") vessel acquisitions. This event was preceded by the political and financial unrest in Egypt, which exacerbated the already tight liquidity related to the issues encountered in 2010 discussed above. The situation in Egypt resulted in delayed charter payments to three of the Company's AHTS special purpose entities ("SPVs") which are engaged in charters with companies with substantial ties to Egypt. In addition, one of the AHTS SPVs owned by FLTC Fund I is also chartered to a company with ties to Egypt. The failure to make these quarterly payments constitutes an event of default under the Senior Loan. In addition to our Senior Loan with Nord/LB, the Partnership entered into the Working Capital Facility, collectively with the Senior Loan, the ("Nord/LB Loans"). Under the Senior Loan, due to the Event of Default and the cross-default provision in the Working Capital Facility, Nord/LB has the right to declare the entire amount of the Nord/LB Loans to be immediately due and payable by written notice to the Partnership. As of the date of issuance of these financial statements, Nord/LB has not notified the Partnership of any intent to accelerate the amounts outstanding under the Nord/LB Loans. The Partnership reported a net loss of $51.0 million on $63.5 million of time charter revenue for 2010, compared with a net loss of $26.9 million on $19.4 million of revenue for 2009. The Company's balance sheet at June 30, 2011, showed $652.3 million in total assets, $631.2 million in total liabilities, and stockholders' equity of $21.1 million. A copy of the Form 10-K is available at http://is.gd/97dAfk III to I Maritime Partners Cayman I, L.P., with principal executive offices in Dallas, Texas, owns and operates maritime vessels primarily serving the international offshore energy industry. The Partnership's focus is on anchor-handling tug supply ("AHTS") vessels which support offshore exploration, development and production, but it also owns a non-controlling interest in two multipurpose bulk carrier vessels. The Partnership is also authorized to engage in other activities if III to I International Maritime Solutions Cayman Inc., a Cayman Islands corporation, believes such activities will benefit the Partnership's core business of shipping operations. AE BIOFUELS: Keyes Marketing Pact Amended; CEO Has 3-Yr. Contract ----------------------------------------------------------------- AE Advanced Fuels Keyes, Inc., a wholly owned subsidiary of AE Biofuels, Inc., entered into a First Amendment to Ethanol Marketing Agreement. Under the terms of the Amendment and subject to meeting certain conditions, the AE Project Company agreed to extend the agreement to market ethanol for the AE Project Company until Aug. 31, 2013, with an automatic one-year renewal thereafter. In addition, the Marketing Fee was reduced to eight- tenths of one percent (0.8%) of the Monthly Gross Price, less Monthly Expenses. Meanwhile, effective Sept. 1, 2011, the Company entered into a three-year Employment Agreement with Eric A. McAfee in connection with his continuing responsibilities as Chief Executive Officer providing compensation of $180,000 per year. In addition, Mr. McAfee is entitled to an annual cash bonus in an amount determined by the Board of Directors based upon attainment of certain performance milestones. The Company will pay up to six months of severance and health benefits in the event Mr. McAfee is terminated without "cause". A full-text copy of the First Amendment to Ethanol Marketing Agreement is available for free at http://is.gd/xlhKFW A full-text copy of the Executive Employment Agreement is available for free at http://is.gd/xTTz22 About AE Biofuels AE Biofuels, Inc. (OTC BB: AEBF) -- http://www.aebiofuels.com/-- is a biofuels company based in Cupertino, California, developing sustainable solutions to address the world's renewable energy needs. The Company is commercializing its patent-pending next- generation cellulosic ethanol technology that enables the production of biofuels from both non-food and traditional feedstocks. Its wholly-owned Universal Biofuels subsidiary built and operates a nameplate 50 million gallon per year biodiesel production facility on the east coast of India. The Company reported a net loss of $1.72 million on $1.59 million of sales for the three months ended Sept. 30, 2010, compared with a net loss of $3.78 million on $4.05 million of sales for the same period a year earlier. BDO Seidman, LLP, in San Jose, Calif., expressed substantial doubt about AE Biofuels' ability to continue as a going concern, following the Company's 2009 results. The independent auditors noted that the Company has incurred recurring losses, and has a working capital deficit and total stockholders' deficit as of December 31, 2009. The Company's balance sheet at Sept. 30, 2010, showed $20.23 million in total assets, $29.03 million in total liabilities, all current, and a stockholders' deficit of $8.80 million. AEROGROW INTERNATIONAL: Posts $1.5-Mil. Net Loss in June 30 Qtr. ---------------------------------------------------------------- AeroGrow International, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $1.54 million on $1.48 million of product sales for the three months ended June 30, 2011, compared with a net loss of $1.73 million on $1.82 million of product sales for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $5.05 million in total assets, $8.37 million in total liabilities, and a stockholders' deficit of $3.32 million. As reported in the TCR on Aug. 30, 2011, Eide Bailly LLP, in Fargo, North Dakota, expressed substantial doubt about AeroGrow International's ability to continue as a going concern, following the Company's results for the fiscal year ended March 31, 2011. The independent auditors said the Company does not currently have sufficient liquidity to meet its anticipated working capital, debt service and other liquidity needs in the near term. A copy of the Form 10-Q is available at http://is.gd/TYTOgA Boulder, Colo.-based AeroGrow International, Inc., is a developer, marketer, direct-seller, and wholesaler of advanced indoor garden systems designed for consumer use and priced to appeal to the gardening, cooking, and healthy eating, and home and office dDor markets. AIG INC: Fitch Puts Rating on Three Class Debentures at Low-B ------------------------------------------------------------- Fitch Ratings has assigned 'BBB' ratings to American International Group, Inc.'s (AIG) $1.2 billion of 4.250% senior unsecured notes due Sept. 15, 2014 and $800 million of 4.875% senior unsecured notes due Sept. 15, 2016. Fitch has also affirmed its existing ratings on AIG and its subsidiaries. The Rating Outlooks are Stable. The ratings assigned to the newly issued senior unsecured notes are equivalent to Fitch's ratings on the company's currently outstanding senior unsecured securities. Fitch's expectation is that proceeds from the issue will be used to pay maturing senior unsecured debt that was issued for match-funded programs. The company's match funded debt programs are designed so that asset maturities should fund associated debt obligations as they mature. Fitch believes that AIG's refinancing of such matched debt highlights a current mismatch between the company's matched program assets and liabilities. The company has been reducing its matched funded spread-based lending activities and its overall leverage. However, Fitch's view is that matched-funded leverage continues to negatively impact AIG's credit-quality. At June 30, 2011, AIG's Total Financing and Commitments (TFC) ratio, a broadly defined measure of leverage, had improved to 1.5 times (x) at June 30, 2011 compared to 2.3x at year-end 2010, largely as a result of declines in the notional values of credit default swap (CDS) protection written by the company's financial products unit. However this ratio is still high compared to those of insurance company peers. AIG's debt-to-capital ratio at June 30, 2011, excluding debt issued by the company's International Lease Finance Corp. (ILFC) subsidiary and including matched funding debt, was 34%, which is relatively high for the company's current ratings. Excluding the impact of match-funded debt the ratio was 17%, which is well within Fitch's guidelines for the company's current ratings. Fitch estimates AIG's first half 2011 operating earnings-based interest coverage from the company's core life and non-life insurance operations at approximately 2.4x. Fitch views this as comparatively weak for the rating category and generally below coverage ratios generated by AIG's peers. Fitch believes that AIG's contingent liquidity risks, especially those tied to its CDS exposure and financial leverage have declined materially. As a result, Fitch believes that AIG's financial profile continues to improve and views it as evolving into one that is comparable to more traditional insurance organizations. Fitch's expectation is that this evolution will enable AIG to achieve a stand-alone Issuer Default Rating (IDR) that is consistent with the company's current ratings as the U.S. Treasury seeks to divest its majority ownership. Currently, Fitch rates the stand-alone IDR of AIG (without consideration for the U.S. Treasury ownership) at 'BBB-'. Fitch views the company's near-to-mid term challenges as improving its operating earnings, especially in light of heavy catastrophe- related losses that have reduced 2011 earning for AIG and for other global non-life insurance organizations. AIG recently filed regulatory documents aimed at enabling the company to divest its majority ownership interest in ILFC. Fitch views this favorably because it would further simplify AIG's operations and organizational structure and increase the company's ability to focus on its insurance operations. Key rating drivers that could produce revisions in Rating Outlooks to Positive or lead to upgrades in AIG's stand-alone Issuer Default Rating (IDR) or its subsidiaries' Insurer Financial Strength (IFS) ratings include: -- Enhanced underwriting profitability and reserve stability of the company's non-life insurance subsidiaries; -- Further stabilization of sales trends and profitability of the company's domestic life insurance subsidiaries; -- Material increases in risk-based capital ratios at either the domestic life insurance or the non-life insurance subsidiaries; -- Further declines in outstanding notional values of AIG Financial Products Corp.'s (AIGFP) CDS portfolio without significant liquidity or capital drains. Such a decline would most directly affect Fitch's view of AIG's stand-alone IDR; -- Further transition of AIG's capital structure and leverage to that of a more traditional insurance holding company resulting in a narrowing of the notching between insurance company ratings and holding company ratings. Under such a scenario as government support declines, per Fitch's notching criteria, the IDR of the holding company would migrate to one notch higher than the senior unsecured debt rating. Key rating drivers that could produce a revision in the Rating Outlook to Negative or lead to downgrades in AIG's stand-alone IDR or its subsidiaries' IFS rating include: -- Declines in underwriting profitability and heightened reserve volatility of the company's non-life insurance subsidiaries that Fitch views as inconsistent with that of comparably- rated peers and industry trends; -- Deterioration in the company's domestic life subsidiaries' sales or profitability trends; -- Material declines in risk-based capital ratios at either the domestic life insurance or the non-life insurance subsidiaries; -- Evidence that the company's CDS portfolio run-off is not proceeding as currently envisioned; -- A deterioration in Fitch's view of the implied rating support provided by the U.S. Treasury's interests in AIG that is not fully offset from a rating perspective by improvements in AIG's stand-alone financial profile. -- AIG's inability to further transition its capital structure and leverage to those of a more traditional insurance holding company could result in a widening of the notching between the insurance subsidiary ratings and the holding company ratings. Under such a scenario as government support declines, per Fitch's notching criteria AIG's senior unsecured debt ratings would migrate to one notch lower than the holding company IDR rating. Fitch has assigned the following ratings: American International Group, Inc. -- 4.250% senior unsecured notes due Sept. 15, 2014 'BBB'; -- 4.875% senior unsecured notes due Sept. 15, 2016 'BBB'. Fitch has affirmed the following ratings: Chartis Property Casualty Company American Home Assurance Company Chartis Casualty Company Commerce and Industry Insurance Company Granite State Insurance Company Illinois National Insurance Co. National Union Fire Insurance Company of Pittsburgh, PA; New Hampshire Insurance Company The Insurance Company of the State of Pennsylvania; Chartis Select Insurance Company Landmark Insurance Company Lexington Insurance Company AIU Insurance Company Chartis Specialty Insurance Company Chartis MEMSA Insurance Company Chartis Insurance UK Ltd. Chartis Overseas, Limited. AGC Life Insurance Company Western National Life Insurance Company SunAmerica Annuity and Life Assurance Company American General Life Insurance Company of Delaware American General Life and Accident Insurance Company American General Life Insurance Company First SunAmerica Life Insurance Company SunAmerica Life Insurance Company The United States Life Insurance Company in the City of New York The Variable Annuity Life Insurance Company -- IFS at 'A'. ASIF II Program ASIF III Program ASIF Global Financing -- Program ratings at 'A'. American International Group, Inc. -- Long-term IDR at 'BBB'; -- Senior debt at 'BBB'; -- 6.25% series A-1 junior subordinated debentures due March 15, 2087 at 'BB-'; -- 5.75% series A-2 junior subordinated debentures due March 15, 2067 at 'BB-'; -- 4.875% series A-3 junior subordinated debentures due March 15, 2067 at 'BB-'; -- 6.45% series A-4 junior subordinated debentures due June 15, 2077 at 'BB-'; -- 7.700% series A-5 junior subordinated debentures due Dec. 18, 2062 at 'BB-'; -- 8.175% series A-6 junior subordinated debentures due May 15, 2058 at 'BB-'; -- 8.00% series A-7 junior subordinated debentures due May 22, 2038 at 'BB-'; -- 8.625% series A-8 junior subordinated debentures due May 22, 2068 at 'BB-'; -- 5.67% series B-1 debentures due Feb. 15, 2041 at 'BB-' -- 5.82% series B-2 debentures due May 1, 2041 at 'BB-'; -- 5.89% series B-3 debentures due Aug. 1, 2041 at 'BB-. AIG International, Inc. -- Long-term IDR at 'BBB'; -- Senior debt at 'BBB'; -- 5.60% senior unsecured notes due July 31, 2097 at 'BBB'. AIG Life Holdings (US), Inc. -- Long-term IDR at 'BBB'; -- 7.50% senior unsecured notes due July 15, 2025 at 'BBB'; -- 6.625% senior unsecured notes due Feb. 15, 2029 at 'BBB'. American General Capital II -- 8.50% preferred securities due July 1, 2030 at 'BB-'. American General Institutional Capital A -- 7.57% capital securities due Dec. 1, 2045 at 'BB-'. American General Institutional Capital B -- 8.125% capital securities due March 15, 2046 at 'BB-'. The Rating Outlooks are Stable. AIRPLAY DIRECT: Involuntary Chapter 11 Case Summary --------------------------------------------------- Alleged Debtor: AirPlay Direct, LLC 231 Green Harbor Road, Suite #136 Old Hickory, TN 37138 Case Number: 11-08916 Type of Business: Music Promotion Involuntary Chapter 11 Petition Date: September 6, 2011 Court: Middle District of Tennessee (Nashville) Judge: George C. Paine II Petitioner's Counsel: Robert J. Welhoelter, Esq. 320 31st Avenue North, Suite A Nashville, TN 37203 Tel: (615) 760-5871 Fax: (615) 760-5873 E-mail: rjwelho@gmail.com AirPlay Direct's petitioners: Petitioner Nature of Claim Claim Amount ---------- --------------- ------------ Clifford Lee Doyal unpaid compensation $73,093 2338 Ridgeland Dr Nashville, TN 37214 Scott Welch compensation & rent $111,465 1515 Harding Place Nashville, TN 37215 Raleigh Squires unpaid compensation $24,250 2001 Anderson Road V114 Nashville, TN 37217 Sussman & Associates,PC unpaid invoices $27,721 1222 16th Avenue South 3rd Floor Nashville, TN 37212 AMBASSADORS INTERNATIONAL: Plan Disclosures Hearing on Sept. 27 --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware will convene a hearing to consider approval of the Disclosure Statement explaining the Chapter 11 Plan of Liquidation of Ambassadors International, Inc., and its debtor affiliates on September 27, 2011, at 10:00 a.m. Objections to the Disclosure Statement are due on or before September 20. The Plan is premised on the substantive consolidation of the estates with respect to the treatment of all claims solely for purposes of voting and distribution. A litigation trust will be created on the effective date. Holders of Other Secured Claims will recover 100% of their claims and are deemed to accept the Plan. Holders of Priority Claims, Intercompany Claims and Interests are deemed to reject the Plan. A full-text copy of the Disclosure Statement is available for free at http://ResearchArchives.com/t/s?76e1 About Ambassadors International Headquarters in Seattle, Washington, Ambassadors International, Inc. (NASDAQ: AMIE) -- http://www.ambassadors.com/-- operates Windstar Cruises, a three-ship fleet of luxury yachts that explore the hidden harbors and secluded coves of the world's most sought- after destinations. Carrying 148 to 312 guests, the luxurious ships of Windstar cruise to nearly 50 nations, calling at 100 ports throughout Europe, the Caribbean and the Americas. Ambassadors International Inc. and 11 affiliates sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-11002) on April 1, 2011. Kristopher M. Hansen, Esq.; Sayan Bhattacharyya, Esq.; Marianne Mortimer, Esq.; and Matthew G. Garofalo, Esq., at Stroock & Stroock & Lavan LLP, serve as the Debtors' bankruptcy counsel. Imperial Capital, LLC, is the Debtors' financial advisor. Phase Eleven Consultants, LLC, is the Debtors' claims and notice agent. The Debtors tapped Bifferato Gentilotti LLC as Delaware counsel, and Richards, Layton & Finger as bankruptcy co-counsel. The Official Committee of Unsecured Creditors tapped Kelley Drye & Warren LLP as its counsel, and Lowenstein Sandler PC as its co-counsel. The Debtors disclosed $86.4 million in total assets and $87.3 million in total debts as of Dec. 31, 2010. ATL 2130: Case Summary & 8 Largest Unsecured Creditors ------------------------------------------------------ Debtor: ATL 2130, LP 400 Arthur Godfrey Road, Suite 200 Miami Beach, FL 33140 Bankruptcy Case No.: 11-76017 Chapter 11 Petition Date: September 6, 2011 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Debtor's Counsel: Herbert C. Broadfoot, II, Esq. RAGSDALE, BEALS, SEIGLER, ET AL. 2400 International Tower 229 Peachtree Street, N.E. Atlanta, GA 30303 Tel: (404) 588-0500 Fax: (404) 523-6714 E-mail: broadfoot@rbspg.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's eight largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ganb11-76017.pdf The petition was signed by Eric D. Sheppard, limited partner. BAKERSFIELD ASCENT: Case Summary & 16 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Bakersfield Ascent SA I, LLC 11612 FM 2244, Suite 1-140 Austin, TX 78738 Bankruptcy Case No.: 11-53095 Chapter 11 Petition Date: September 2, 2011 Court: United States Bankruptcy Court Western District of Texas (San Antonio) Judge: Leif M. Clark Debtor's Counsel: James Samuel Wilkins, Esq. WILLIS & WILKINS, LLP 100 W Houston St, Suite 1275 San Antonio, TX 78205 Tel: (210) 271-9212 Fax: (210) 271-9389 E-mail: jwilkins@stic.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 16 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txwb11-53095.pdf The petition was signed by Michael S. Walker, managing member BANK OF AMERICA: To Cut $5BB in Annual Costs & Slash 30T Jobs ------------------------------------------------------------- Bank of America Corp. will cut $5 billion in annual costs by the end of 2013 and slash 30,000 jobs out of its consumer-oriented businesses. David Benoit, writing for Dow Jones Newswires, reports that Chief Executive Brian Moynihan, speaking at the Barclays Capital financial conference in New York, reiterated promises to trim excess expenses and businesses to reshape the nation's biggest bank by assets and put behind it a series of missteps. Mr. Moynihan has sold off businesses and investments and is now working on the final details of what has been dubbed "Project New BAC." According to Dow Jones, Mr. Moynihan said Monday that the planning for the first phase of Project New BAC has been completed. The bank will take the $5 billion, or about 18%, in annual expenses out of $27 billion in consumer and small banking expenses, card costs, global technology and other areas. Steve Gelsi at MarketWatch relates Phase II is scheduled to begin in October and continue through March, 2012 to address business segments not yet covered, the bank said. BEAR ISLAND: Plan Outline Hearing Scheduled for Oct. 5 ------------------------------------------------------ The U.S. Bankruptcy Court for the Eastern District of Virginia will convene a hearing on Oct. 5, 2011, at 2:00 p.m., to consider adequacy of the disclosure statement explaining Bear Island Paper Company, L.L.C.'s proposed plan of reorganization dated Aug. 24, 2011. As reported in the Troubled Company Reporter on Aug. 31, 2011, the Plan provides for the termination of the Debtor's business operations and the liquidation of its assets. The Plan provides for the payment in full to holders of Allowed Administrative Claims and Allowed Priority Claims. The Plan further provides for a recovery to holders of Allowed General Unsecured Claims. Full-text copies of the Plan and Disclosure Statement are available for free at http://ResearchArchives.com/t/s?76c0 The Confirmation Hearing is scheduled for Nov. 22, at 2:00 p.m. The deadline to file an objection to the confirmation of the Plan and to vote to accept or reject the Plan is on Nov. 14. About White Birch & Bear Island Canada-based White Birch Paper Company is the second largest newsprint producer in North America. As of Dec. 31, 2009, the White Birch Group held a 12% share of the North American newsprint market and employed roughly 1,300 individuals (the majority of which reside in Canada). Bear Island Paper Company, L.L.C., is a U.S.-based unit of White Birch. Bear Island filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Case No. 10-31202) on Feb. 24, 2010. At June 30, 2011, the Company had $141.9 million in total assets, $153.2 million in total liabilities, and a stockholders' deficit of $11.3 million. White Birch filed for bankruptcy protection under Canada's Companies' Creditors Arrangement Act, before the Superior Court for the Province of Quebec, Commercial Division, Judicial District of Montreal, Canada. White Birch and five other affiliates -- F.F. Soucy Limited Partnership; F.F. Soucy, Inc. & Partners, Limited Partnership; Papier Masson Ltee; Stadacona Limited Partnership; and Stadacona General Partner, Inc. -- also sought bankruptcy protection under Chapter 15 of the U.S. Bankruptcy Code (Bankr. E.D. Va. Case No. 10-31234). Jonathan L. Hauser, Esq., at Troutman Sanders LLP, in Virginia Beach, Virginia; and Richard M. Cieri, Esq., Christopher J. Marcus, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, serve as counsel to White Birch, as Foreign Representative. Kirkland & Ellis and Troutman Sanders also serve as Chapter 11 counsel to Bear Island. AlixPartners LLP serves as financial and restructuring advisors to Bear Island, and Lazard Freres & Co., serves as investment banker. Garden City Group is the claims and notice agent. Jason William Harbour, Esq., at Hunton & Williams LLP, in Richmond, Virginia, represents the Official Committee of Unsecured Creditors. Chief Judge Douglas O. Tice, Jr., handles the Chapter 11 and Chapter 15 cases. BHI EXCHANGE: S&P Gives 'B' Corp. Credit Rating; Outlook Stable --------------------------------------------------------------- Standard & Poor's Rating Services assigned its 'B' corporate credit rating to U.S. quick-service restaurant operator and franchisor BHI Exchange Inc. (BHI). The outlook is stable. "At the same time, we assigned our 'B' issue-level rating to the company's first-lien secured credit facility, which consists of a $190 million six-year term loan and a $25 million five-year revolving credit facility. The facility is co-issued by its subsidiary Bojangles' Restaurants Inc. The recovery rating is '3', indicating our expectation of meaningful (50% to 70%) recovery for lenders in the event of a payment default. Private- equity firm Advent International intends to use the proceeds from the term loan, along with preferred equity contribution, to acquire BHI," S&P related. "The ratings reflect our assumption that the credit metrics will remain in line with the ratings in the near term," said Standard & Poor's credit analyst Andy Sookram, "as our performance expectations and debt reduction with excess cash flows will negate incremental payment-in-kind preferred stock that we treat as debt." "We consider BHI to have a highly leveraged financial risk profile based on its high debt and the resulting thin cash flow coverage. We view the company's business risk profile as weak because of intense competition in the quick-service restaurant sector, significant geographic concentration in North Carolina and South Carolina, and exposure to volatile commodity costs." BLUE HERON: Trustee Hires CB Richard Ellis to Market 23-Acre Site ----------------------------------------------------------------- Wendy Culverwell at Portland Business Journal reports that a trustee overseeing the liquidation of Blue Heron Paper Co. hired CB Richard Ellis to market the 23-acre site to would-be buyers. Along with another Blue Heron site in neighboring West Linn, the properties could generate about $6.4 million in revenue for the Blue Heron, the Business Journal notes. For more than 100 years, the defunct Blue Heron paper mill served as a five-block barrier between Oregon City and the Willamette River. The city now has a unique opportunity to reclaim that connection, the report notes. The deadline to submit bids is on Oct. 19, 2011. About Blue Heron Oregon City, Oregon-based Blue Heron Paper Company -- http://www.blueheronpaper.com/-- produces newsprint, and high bright and heavyweight groundwood specialty printing papers. Blue Heron filed for Chapter 11 protection (Bankr. D. Ore. Case No. 09-40921) on Dec. 31, 2009. David B. Levant, Esq., at Stoel Rives LLP, in Portland, Oregon, serves as bankruptcy counsel to the Debtor. Attorneys at Barran Liebman LLP have been tapped as labor and employment counsel. The Debtor also hired Vanden Bos & Chapman, LLP, as special counsel. The Company estimated $10 million to $50 million in assets and debts as of the Chapter 11 filing. BROADWAY/WORKMAN LLC: Case Summary & Largest Unsecured Creditor --------------------------------------------------------------- Debtor: Broadway/Workman, LLC 2625 N. Broadway Los Angeles, CA 90031 Bankruptcy Case No.: 11-47977 Chapter 11 Petition Date: September 6, 2011 Court: United States Bankruptcy Court Central District Of California (Los Angeles) Judge: Richard M. Neiter Debtor's Counsel: David B. Golubchik, Esq. LEVENE NEALE BENDER RANKIN & BRILL LLP 10250 Constellation Blvd., Suite 1700 Los Angeles, CA 90067 Tel: (310) 229-1234 E-mail: dbg@lnbrb.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 In its list of 20 largest unsecured creditors, the Company placed only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Travelers Insurance Co Insurance Contract $611 CL Remmitance Center PO Box 660317 Dallas, TX 75266-0317 The petition was signed by David M. Frank, authorized agent. Affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- Covina Palms Center, LLC 11-44683 08/15/11 Star News Building L.P. 11-28697 04/29/11 York Square, LLC 11-15554 02/09/11 BUCKTOWN STATION: May Use PNC Collateral to Pay 50% of Lawyer Fees ------------------------------------------------------------------ Bucktown Station, LLC, won permission to pay one-half of the requested fees of Porter Law Network ($29,737.50), Brookweiner ($26,370.50), and Berenz ($17,600), out of the cash collateral securing obligations to PNC Bank National Association, conditional on and provided the Debtor amends its plan of reorganization to provide clarity and changes to afford necessary additional protection to PNC. PNC objected to the request, arguing that Bucktown Station's condominium project declined in value after PNC loaned funds to the Debtor in 2006. In granting the Debtor's request, Bankruptcy Judge Jack B. Schmetterer noted that the Debtor's cash flow from good tenants is stable and the Station consists of quality property not shown to be diminishing in value. The cash on hand protecting debt has improved since the Chapter 11 bankruptcy case was filed. The Debtor is asking the 50% of the fees requested be paid now. Due to rental income generated, the payments will not diminish cash on hand below the amount held when the case was filed and these amounts will be replenished out of rents collected. The Bankruptcy Court is scheduled to consider the fee applications for Oct. 4, 2011, at 11:00 a.m. A copy of Judge Schmetterer's Sept. 1 Memorandum Opinion is available at http://is.gd/MtQsmofrom Leagle.com. As reported by the Troubled Company Reporter on Aug. 22, 2011, Judge Schmetterer tossed a request by PNC to modify the automatic stay so it may proceed with a foreclosure action on the condominium building. Although the Debtor lacks equity in its property, the judge said the Debtor has proposed a plan showing a reasonable possibility of a successful reorganization if the market improves and prospective customers come back into the home market over three years. However, Judge Schmetterer conditioned the denial of the bank's request on the Debtor proposing a Plan that provides for case dismissal should specified benchmarks on tunes and amounts of sales at reasonable intervals not be met. The Debtor's proposed Plan provides for a staged sell off of the condominiums over a three-year period. The Debtor assumes that it will sell the residential condominiums for an average of $475,000 each and the retail condominium at the very end of the Plan period for $825,000. Under that Plan, the net sale proceeds will be used to repay creditors. Secured creditors and unsecured creditors with claims under $4,000 are each to receive 100% of their allowed claims, while unsecured creditors with claims over $4,000 are each to receive 3% of their allowed claims. The Debtor intends to challenge the amounts claimed by some mechanics lien creditors, so only their claims as expected to be allowed after that process are included in the Debtor's projections. The Debtor and PNC have stipulated that the claims secured by the Property total $5,771,902. However, the present value of the Property is only in a range between $4,030,000 and $4,690,000. Should the Debtor's Plan succeed and the proposed sales take place, the Debtor will have generated $7,408,225 in revenue. The Debtor projects that this will be enough to repay its creditors according to the Plan, to pay necessary expenses, and to maintain the Property throughout the Plan period. About Bucktown Station Bucktown Station is a triangle-shaped development at Western and Winnebago avenues has 15 two-and-three bedroom units, 21 indoor parking spaces and 3,000-square-feet of retail space. Bucktown Station, LLC, filed for Chapter 11 protection (Bankr. N.D. Ill. Case No. 11-02004) in Chicago on Jan. 19, 2011. Karen J. Porter, Esq., at Porter Law Firm, in Chicago, represents the Debtor. The Debtor estimated assets of $1 million to $10 million and debts of up to $50,000 in its Chapter 11 petition. The petition was signed by Bruce A. Fogelson, managing member. Counsel for secured lender PNC Bank National Association are: James M. Crowley, Esq. Francis J. Pendergast, III, Esq. John F. Sullivan, Esq. Philip J. Berenz, Esq. CROWLEY & LAMB, P.C. 350 N. LaSalle Street Chicago, IL 60610 Tel: 312.670.6900 Fax: 312.467.5926 E-mail: jcrowley@crowleylamb.com fpendergast@crowleylamb.com jsullivan@crowleylamb.com CABINET AND BATH: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Cabinet and Bath Supply Inc. 882 W. Tracker Road Nixa, MO 65714 Bankruptcy Case No.: 11-61950 Chapter 11 Petition Date: September 6, 2011 Court: United States Bankruptcy Court Western District of Missouri (Springfield) Judge: Arthur B. Federman Debtor's Counsel: David E. Schroeder, Esq. DAVID SCHROEDER LAW OFFICES, PC 1524 East Primrose St., Suite A Springfield, MO 65804-7915 Tel: (417) 890-1000 Fax: (417) 886-8563 E-mail: bk1@dschroederlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $500,001 to $1,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mowb11-61950.pdf The petition was signed by David Paris, president. CAPITOL CITY: Eight Directors Elected at Annual Meeting ------------------------------------------------------- Capitol City Bancshares, Inc., has determined that its original 8-K filed on Aug. 16, 2011, incorrectly stated that certain persons were elected to the board of directors at the Company's Annual Meeting. The Company filed an amendment to the Current Report to correct the Company's election voting results for the board of directors. Security holders elected these persons as directors of the Company: (1) George G. Andrews; (2) Charles W. Harrison; (3) Roy W. Sweat; (4) William Thomas; (5) Cordy T. Vivian; (6) Shelby R. Wilkes; (7) Tarlee W. Brown; and (8) Pratape Singh. Marian S. Jordan and John T. Harper were nominated but did not receive a majority of the votes cast and were not elected as directors of the Company. About Capitol City Atlanta, Ga.-based Capitol City Bancshares, Inc., was incorporated under the laws of the State of Georgia on April 14, 1998, for the purpose of serving as a bank holding company for Capitol City Bank and Trust Company. The Bank operates a full-service banking business and engages in a broad range of commercial banking activities, including accepting customary types of demand and timed deposits, making individual, consumer, commercial, and installment loans, money transfers, safe deposit services, and making investments in U.S. government and municipal securities. The Bank serves the residents of the City of Atlanta and Fulton, DeKalb, Chatham, Richmond and Dougherty Counties. The Company's balance sheet at June 30, 2011, showed $302.90 million in total assets, $292.57 million in total liabilities, and $10.32 million total stockholders' equity. As reported in TCR on April 26, 2011, Nichols, Cauley & Associates, LLC, in Atlanta, Georgia, expressed substantial doubt about Capitol City Bancshares' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company the Company is operating under regulatory orders to, among other items, increase capital and maintain certain levels of minimum capital. "As of Dec. 31, 2010, the Company was not in compliance with these capital requirements. In addition to its deteriorating capital position, the Company has suffered significant losses related to nonperforming assets, has experienced declining levels of liquid assets, and has significant maturities of liabilities within the next twelve months." CAROLINA OIL: Case Summary & 19 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Carolina Oil & Gas Holdings, LLC 1055 Stone House Rd. Chapin, SC 29036 Bankruptcy Case No.: 11-60083 Chapter 11 Petition Date: September 5, 2011 Court: United States Bankruptcy Court Southern District of Texas (Victoria) Judge: Jeff Bohm Debtor's Counsel: Courtney Smart Lauer, Esq. GORDON ARATA MCCOLLAM DUPLANTIS & EAGAN 1980 Post Oak Blvd., Suite 1800 Houston, Tx 77056 Tel: (713) 543-3180 Fax: (713) 333-5501 E-mail: clauer@gordonarata.com Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 19 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txsb11-60083.pdf The petition was signed by Christopher Del Rossi, chief executive officer. CATHOLIC CHURCH: Insurers Ordered to Pay Share of Wilm. Settlement ------------------------------------------------------------------ Philly.com, citing the Associated Press, reports that Judge Christopher Sontchi ordered insurance companies to pay their share of a settlement with priest sex-abuse victims that is the foundation of the Roman Catholic Diocese of Wilmington's reorganization plan. According to the report, the insurers had balked at contributing $15.4 million toward the $77 million settlement with about 150 abuse survivors until appeals filed by two priests identified by the diocese as child abusers are resolved. Judge Sontchi replied that he was "flabbergasted" that the insurers would threaten to scuttle the agreement because of a "technicality." The report notes the priests are appealing court-ordered restrictions prohibiting the diocese from using its assets to make any future payments to priests identified by the diocese as pedophiles. Under the reorganization plan, the payments are due Sept. 26. About the Diocese of Wilmington The Diocese of Wilmington covers Delaware and the Eastern Shore of Maryland and serves about 230,000 Catholics. The Delaware diocese is the seventh Roman Catholic diocese to file for Chapter 11 protection to deal with lawsuits for sexual abuse. Previous filings were by the dioceses in Spokane, Washington; Portland, Oregon; Tucson, Arizona; Davenport, Iowa, Fairbanks, Alaska; and San Diego, California. The Diocese filed for Chapter 11 protection (Bankr. D. Del. Case No. 09-13560) on Oct. 18, 2009. Attorneys at Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Diocese. The Ramaekers Group, LLC, is the financial advisor. The petition says assets range $50 million to $100 million while debts are between $100 million to $500 million. The bankruptcy filing automatically stayed eight consecutive abuse trials scheduled in Delaware scheduled to begin Oct. 19, 2009. There were 131 cases filed against the Diocese, with 30 scheduled for trial, as of the bankruptcy filing. CB HOLDINGS: Wants Court to Extend Plan Filing Deadline to Dec. 12 ------------------------------------------------------------------ CB Holding Corp. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to further extend their exclusive periods to file a Chapter 11 plan of reorganization until Dec. 12, 2011, and solicit acceptances of that plan until Feb. 8, 2012. A hearing is set for Oct. 18, 2011, at 2:00 p.m. (EDT), to consider the Debtors' request for an extension. Objections, if any, must be filed not later than 4:00 p.m. on Oct. 4, 2011. According to the Debtors, they have concentrated their efforts on the sales of their three restaurant brands and related assets. The Debtors and their professionals also devoted significant time and energy to: i) close any remaining restaurant location sales, ii) negotiate, draft, and file the Plan and Disclosure Statement and related negotiations among interested parties, iii) attend to various operational and administrative matters that have arisen during the Chapter 11 cases, iv) manage the Debtors' liquidity and other financing issues, and v) further the wind-down of the Chapter 11 cases. The Debtors assures the Court that the extension of the exclusive periods will protect their ability to obtain creditor approval of the Plan, without the deterioration and disruption of their businesses and inherent confusion and inefficiencies that could result if competing plans were filed. About CB Holding New York-based CB Holding Corp. operated 20 Charlie Brown's Steakhouse, 12 Bugaboo Creek Steak House, and seven The Office Beer Bar and Grill restaurants when it filed for bankruptcy protection. The Company closed 47 locations before filing for Chapter 11. CB Holding sold off its The Office restaurant chain and 12 Bugaboo Creek stores in separate auctions. Villa Enterprises Ltd. won the bidding for The Office chain with its $4.68 million. RRGK LLC acquired the 12 Bugaboo Creek stores for $10.05 million, more than tripling the $3.175 million first bid from an affiliate of Landry's Restaurants Inc. CB Holding and its affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 10-13683) on Nov. 17, 2010. Joel H. Leviton, Esq., Stephen J. Gordon, Esq., Richard A. Stieglitz Jr., Esq., and Maya Peleg, Esq., at Cahill Gordon & Reindel LLP, in New York; and Mark D. Collins, Esq., Christopher M. Samis, Esq., and Tyler D. Semmelman, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, assist the Debtors in their restructuring effort. The Garden City Group, Inc., is the Debtors' notice, claims and solicitation agent. Jeffrey N. Pomerantz, Esq., at Pachulski Stang Ziehl & Jones LLP, in Los Angeles; and Bradford J. Sandler, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, represent the Official Committee of Unsecured Creditors. CB Holding estimated its assets at $100 million to $500 million and debts at $50 million to $100 million. CB HOLDING: Court Sets Oct. 10, 2011 Claims Bar Date ---------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware set Oct. 10, 2011, at 4:00 p.m. (prevailing Eastern Time) as the deadline for creditors of CB Holding Corp. and its debtor- affiliates to file proofs of claim. Governmental units also have until Oct. 10, 2011, at 4:00 p.m. (prevailing Eastern Time) to file their claims. All claims against the Debtor must be submitted to: a) If sent by mail GCG, Inc Attn: CB Holding Corp., Claims Processing P.O. Box 9587 Dublin, OH 43017-4505 b) If sent by messenger or overnight courier GCG, Inc Attn: CB Holding Corp., Claims Processing P.O. Box 9587 Dublin, OH 43017-4505 GCG, Inc. Attn: CB Holding Corp., Claims Processing 5151 Blazer Parkway, Suite A Dublin, OH 43017-4887 About CB Holding New York-based CB Holding Corp. operated 20 Charlie Brown's Steakhouse, 12 Bugaboo Creek Steak House, and seven The Office Beer Bar and Grill restaurants when it filed for bankruptcy protection. The Company closed 47 locations before filing for Chapter 11. CB Holding sold off its The Office restaurant chain and 12 Bugaboo Creek stores in separate auctions. Villa Enterprises Ltd. won the bidding for The Office chain with its $4.68 million. RRGK LLC acquired the 12 Bugaboo Creek stores for $10.05 million, more than tripling the $3.175 million first bid from an affiliate of Landry's Restaurants Inc. CB Holding and its affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 10-13683) on Nov. 17, 2010. Joel H. Leviton, Esq., Stephen J. Gordon, Esq., Richard A. Stieglitz Jr., Esq., and Maya Peleg, Esq., at Cahill Gordon & Reindel LLP, in New York; and Mark D. Collins, Esq., Christopher M. Samis, Esq., and Tyler D. Semmelman, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, assist the Debtors in their restructuring effort. The Garden City Group, Inc., is the Debtors' notice, claims and solicitation agent. Jeffrey N. Pomerantz, Esq., at Pachulski Stang Ziehl & Jones LLP, in Los Angeles; and Bradford J. Sandler, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, represent the Official Committee of Unsecured Creditors. CB Holding estimated its assets at $100 million to $500 million and debts at $50 million to $100 million. CITIZENS DEVELOPMENT: Creditors Must File Claims by Sept. 30 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of California set Sept. 30, 2011, as the deadline for creditors of Citizens Development Corp. to file proofs of claim and interests, request for payment of administrative expense priority claims incurred until July 31, 2011. About Citizens Development Corp. San Marcos, California-based Citizens Development Corp., owns and operates the Lake San Marcos Resort and Country Club located in San Diego County. The Company filed a voluntary petition for relief under Chapter 11 (Bankr. S.D. Calif. Case No. 10-15142) on August 26, 2010. Ron Bender, Esq., at Levene, Neale, Bender, Yoo & Brill LLP, represents the Debtor. The Debtor estimated its assets and debts at $10 million to $50 million. Chapter 11 petitions were also filed by affiliates LSM Executive Course, LLC (Bankr. S.D. Calif. Case No. 10-07480), and LSM Hotel, LLC (Bankr. S.D. Calif. Case No. 10-13024). CLAUDIO OSORIO: Auction for Miami Beach Mansion Slated for Nov. 3 ----------------------------------------------------------------- Paul Brinkmann at the South Florida Business Journal reports that the auction of Claudio Osorio's swanky mansion, at 15 Star Island Drive, is tentatively set for Nov. 3, 2011. The actual date will be confirmed in a Sept. 14, 2011, bankruptcy court hearing. The report says recent sales of high-end homes in Miami Beach suggest there is renewed competition for such property, according to broker Jill Eber, who is representing Osorio in the sale. Mr. Osorio said he is being forced to sell the mansion in an attempt to maintain control over his estate in Chapter 11 bankruptcy. About InnoVida and Mr. Osorio Receiver Mark S. Meland, at Meland Russin & Budwick, PA, filed a Chapter 11 petition for InnoVida Holdings, LLC, fdba COEG, LLC (Bankr. S.D. Fla. Case No. 11-17702) on March 24, 2011. Separate Chapter 11 petitions were also filed for these affiliates: InnoVida MRD, LLC (Case No. 11-17704), InnoVida Services, Inc. (Case No. 11-17705), and InnoVida Southeast, LLC (Case No. 11- 17706). Peter D. Russin, Esq., at Meland Russin & Budwick, P.A., serves as bankruptcy counsel. InnoVida Holdings has under $50,000 in assets and $10 million to $50 million in debts, according to the petition. Founder Claudio Eleazar and Amarilis Osorio filed a separate Chapter 11 petition (Bankr. S.D. Fla. Case No. 11-17075) on March 17, 2011. Mr. Osorios is being accused of fraud and mismanagement. Bankruptcy Judge Robert A. Mark in Miami authorized the appointment of Mark S. Meland as trustee for InnoVida. Mr. Meland, who had been serving as a receiver for the business in the wake of the allegations against Mr. Osorio, was the one who ushered InnoVida into bankruptcy. According to DBR, the ruling paved the way for the federal bankruptcy watchdog assigned to the case to place Mark S. Meland in the role. Mr. Meland, who had been serving as a receiver for the business in the wake of the allegations against Mr. Osorio, was the one who ushered InnoVida into bankruptcy on March 24. COMPOSITE TECHNOLOGY: Has Deal With Committee for Weiss as CRO -------------------------------------------------------------- Composite Technology Corporation, et al., entered into a stipulation with the Official Committee of Unsecured Creditors to appoint Brian Weiss as the Debtors' chief restructuring officer. The Debtors clarify that Mr. Weiss will serve as part of management and will not supplant the board of directors. On Aug. 11, 2011, the Court authorized the sale of substantially all of the Debtors' assets. The sale was closed on Aug. 15, 2011. The Debtors, however, note that there are still matters that need to be addressed, including: -- evaluating and pursuing potential actions against third parties; -- collecting from the DMSE escrow account; -- evaluating claims; -- determining lien rights against various assets; -- wrapping up SEC matters; and -- preparing a plan. The Debtors assert that they need Mr. Weiss to efficiently represent the estate in the course of wind down. About Composite Technology Headquartered in Irvine, California, Composite Technology Corporation - http://www.compositetechcorp.com/-- develops, produces, markets and sells energy efficient and renewable energy products for the electrical utility industry. As of March 31, 2011, the Company has one business segment: CTC Cable Corporation. CTC Cable produces and sells ACCC(R) conductor products and related ACCC(R) hardware products. ACCC(R) conductor has been sold commercially since 2005 and is currently marketed worldwide to electrical utilities, transmission companies and transmission design/engineering firms. Composite Technology filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-15058) on April 10, 2011, with Judge Mark S. Wallace presiding over the case. The Debtor's bankruptcy case was reassigned to Judge Scott C. Clarkson on April 13, 2011. BCC Advisory Services LLC, BCC Ho1dco LLC's FINRA registered Broker/Dealer, serves as investment banker to provide exclusive equity financing services and debt financing services. Composite Technology disclosed $5,855,670 in assets and $12,395,916 in liabilities as of the Chapter 11 filing. CTC Cable Corporation (Bankr. C.D. Calif. Case No. 11-15059) and Stribog, Inc. (Bankr. C.D. Calif. Case No. 11-15065) also filed for Chapter 11 protection. The cases are jointly administered, with Composite Technology as the lead case. Paul J. Couchot, Esq., at Winthrop Couchot PC, serves as the Debtors' bankruptcy counsel. The Debtors also tapped Marsch Fischmann & Breyfogle LLP as special intellectual property approval counsel; Knobbe, Martens, Olson & Bear, LLP as special patent litigation counsel; McIntosh Group as special intellectual property counsel. Peter C. Anderson, the U.S. Trustee for Region 16, appointed five members to the official committee of unsecured creditors in the Debtor's cases. Steptoe & Johnson LLP represents the Committee. COMPREHENSIVE CARE: Issues $1.8MM Promissory Notes to Investors --------------------------------------------------------------- Comprehensive Care Corporation, on Aug. 30, 2011, entered into separate subscription agreements with investors consisting of Sherfam, Inc., and two individuals, whereby the Company issued to the investors (i) promissory notes convertible into shares of the Company's common stock with an aggregate principal amount of $1,800,000 and (ii) five-year warrants to purchase in the aggregate 900,000 shares of the Company's common stock at an initial exercise price of $0.44 per share, in exchange for the Investors' payment to the Company of an aggregate purchase price of $1,800,000. Also on Aug. 30, 2011, the Company entered into separate Addendums to each of the Promissory Notes with each of the Investors, which provided certain additional terms to the Note. The Company intends to use the proceeds for general working capital and other corporate purposes. Each Note has an 18-month term beginning on Aug. 30, 2011, and provides for interest on the outstanding principal balance at a rate of 14% per annum to be paid quarterly and in arrears. Each Note provides that the Investor holding such Note may convert the outstanding balance of the Note, along with any accrued interest, into shares of the Company's common stock at a conversion price of $0.25 per share at any time at or prior to the maturity date of the Note. At the option of applicable Investor, the maturity date of the Note held by such Investor may be extended by six months. Each Note provides that upon the occurrence of certain events, which include the Company's failure to make a timely payment and the Company's breach of a representation, warranty or covenant in the Subscription Agreement or the Note, the Investor holding such Note may require the Company to prepay the amount outstanding under the Note. In addition, each Note provides that the Company may not issue or otherwise incur additional unsecured debt that is senior to the Note. Each Warrant may be exercised in whole or in part at an initial exercise price of $0.44 per share, subject to adjustment, at any time between Aug. 30, 2011, and Aug. 30, 2016. The Warrant exercise price is subject to adjustment upon the occurrence of certain events, including, without limitation, the issuance of dividends payable in any kind of shares of capital stock of the Company, stock splits, combinations, mergers and acquisitions, reclassification and other similar events. The Company has the right to redeem each of the Warrants for an initial redemption price of $0.05 per share, subject to the adjustments described above, following any period of 20 or more consecutive trading days on which the closing price of a share of the Company's common stock has equaled or exceeded $1.00, subject to adjustments. About Comprehensive Care Tampa, Fla.-based Comprehensive Care Corporation provides managed care services in the behavioral health, substance abuse, and psychotropic pharmacy management fields. Mayer Hoffman McCann P.C., in Clearwater, Fla., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and has not generated sufficient cash flows from operations to fund its working capital requirements. The Company reported a net loss of $10.4 million on $35.2 million of revenues for 2010, compared with a net loss of $18.9 million on $14.2 million of revenues for 2009. The Company's balance sheet at June 30, 2011, showed $15.14 million in total assets, $25.09 million in total liabilities, and a $9.95 million total stockholders' deficit. COMPREHENSIVE CARE: PNC Financial Ceases to Hold 5% Equity Stake ---------------------------------------------------------------- In an amended Schedule 13G filing with the U.S. Securities and Exchange Commission, The PNC Financial Services Group, Inc., and its affiliates disclosed that as of Sept. 1, 2011, they ceased to beneficially own more than 5% of the stock of the Comprehensive Care Corporation. A full-text copy of the filing is available for free at http://is.gd/7VyN5O About Comprehensive Care Tampa, Fla.-based Comprehensive Care Corporation provides managed care services in the behavioral health, substance abuse, and psychotropic pharmacy management fields. Mayer Hoffman McCann P.C., in Clearwater, Fla., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and has not generated sufficient cash flows from operations to fund its working capital requirements. The Company reported a net loss of $10.4 million on $35.2 million of revenues for 2010, compared with a net loss of $18.9 million on $14.2 million of revenues for 2009. The Company's balance sheet at June 30, 2011, showed $15.14 million in total assets, $25.09 million in total liabilities, and a $9.95 million total stockholders' deficit. COMPREHENSIVE CARE: Bernard Sherman Holds 9.6% Equity Stake ----------------------------------------------------------- In a Schedule 13G filing with the U.S. Securities and Exchange Commission, Bernard C. Sherman and his affiliates disclosed that as of Aug. 30, 2011, they beneficially own 6,300,000 shares of common stock of Comprehensive Care Corporation representing 9.61% of the shares outstanding. A full-text copy of the filing is available for free at http://is.gd/S8fJSk About Comprehensive Care Tampa, Fla.-based Comprehensive Care Corporation provides managed care services in the behavioral health, substance abuse, and psychotropic pharmacy management fields. Mayer Hoffman McCann P.C., in Clearwater, Fla., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and has not generated sufficient cash flows from operations to fund its working capital requirements. The Company reported a net loss of $10.4 million on $35.2 million of revenues for 2010, compared with a net loss of $18.9 million on $14.2 million of revenues for 2009. The Company's balance sheet at June 30, 2011, showed $15.14 million in total assets, $25.09 million in total liabilities, and a $9.95 million total stockholders' deficit. CORNERSTONE BANCSHARES: Ten Directors Elected at Annual Meeting --------------------------------------------------------------- The 2011 Annual Shareholders Meeting of Cornerstone Bancshares, Inc., was held on April 28, 2011. Ten nominees were elected to serve on the Board of Directors for a term expiring in 2012, namely: (1) B. Kenneth Driver; (2) Karl Fillauer; (3) David G. Fussell; (4) Nathaniel F. Hughes; (5) Lawrence D. Levine; (6) Frank S. McDonald; (7) Doyce G. Payne, M.D.; (8) Wesley M. Welborn; (9) Billy O. Wiggins; and (10) Marsha Yessick. The appointment of Hazlett, Lewis & Bieter, PLLC as the Company's independent registered public accounting firm for the fiscal year ending Dec. 31, 2011, was ratified. About Cornerstone Bancshares Chattanooga, Tenn.-based Cornerstone Bancshares, Inc. is a bank holding company. Its wholly-owned subsidiary, Cornerstone Community Bank, is a Tennessee-chartered commercial bank with five full-service banking offices located in Hamilton County, Tennessee. The Company reported a net loss of $4.71 million on $25.21 million of total interest income for the year ended Dec. 31, 2010, compared with a net loss of $8.17 million on $26.31 million of total interest income during the prior year. The Company's balance sheet at June 30, 2011, showed $441.21 million in total assets, $412.35 million in total liabilities, and $28.86 million in total stockholders' equity. Consent Order The Company disclosed in 10-Q for the quarter ended June 30, 2010, that following the issuance of a written report by the Federal Deposit Insurance Corporation and the Tennessee Department of Financial Institutions concerning their joint examination of Cornerstone Community Bank in October 2009, the Bank entered a consent order with the FDIC on April 2, 2010, and a written agreement with the TDFI on April 8, 2010, each concerning areas of the Bank's operations identified in the report as warranting improvement and presenting substantially similar plans for making those improvements. The consent order and written agreement, which the Company collectively refers to as the "Action Plans", convey specific actions needed to address certain findings from the joint examination and to address the Company's current financial condition. The Action Plans contain a list of strict requirements ranging from a capital directive, which requires the Company to achieve and maintain minimum regulatory capital levels in excess of the statutory minimums to be well-capitalized, to developing a liquidity risk management and contingency funding plan, in connection with which the Company will be subject to limitations on the maximum interest rates it can pay on deposit accounts. The Action Plans also contain restrictions on future extensions of credit and requires the development of various programs and procedures to improve the Company's asset quality as well as routine reporting on its progress toward compliance with the Action Plans to the Board of Directors, the FDIC and the TDFI. As of April 2, 2010, the date of the Action Plans, the Bank was deemed to be "adequately capitalized." CRAIG WASHINGTON: U.S. Gov't May Foreclose on 3 Real Properties --------------------------------------------------------------- United States of America, v. Craig A. Washington, Sr., et al., Civil Action No. H-09-3996 (S.D. Tex.), seeks to recover taxes allegedly owed by Craig Washington, Sr. for the tax years 1988, 1989, and 1990, by foreclosing on three parcels of real property that Washington claims are owned by Washington Children's Trust Number 1. The properties are an office building at 2323 Caroline Street, Houston, Harris County, Texas; and parking lots at 1313 McIlhenny, in Houston, and at 2317 Caroline Street, in Houston, for the 2323 Caroline office building. On July 25 through July 26, 2011, the court conducted a non-jury trial in the matter. In a Sept. 6, 2011 Findings of Fact and Conclusions of Law, District Judge Gray H. Miller held that the U.S. Government may foreclose the liens upon the Washington property for the 1988 and 1989 tax years. After costs of preservation and sale, $21,728 of the proceeds of the foreclosure sale of the property at 2317 Caroline Street, $9,716 of the proceeds of the foreclosure sale of 2323 Caroline, and $4,813 of the proceeds of the foreclosure sale of 1313 McIlhenny, will be distributed first to lienholders. After costs of preservation and sale and after the funds have been distributed to the lienholders, $444,255.22 will be distributed to the United States for the 1988 taxes, penalties, statutory additions, and interest, and $66,875.47 shall be distributed to the United States for the 1989 taxes, penalties, statutory additions, and interest. A copy of Judge Miller's decision is available at http://is.gd/vOsstCfrom Leagle.com. About Craig A. Washington, Sr. Craig A. Washington, Sr., was elected to the 19th Congressional District in the City of Houston as successor to U.S. Congressman Micky Leland, who passed away in 1989. Mr. Washington remained in Congress until 1994. Before this election, Mr. Washington was a practicing lawyer with his own law firm in Houston, Texas. He discontinued the practice of law while he was in Congress because members of Congress cannot continue practicing law. However, he returned to his practice after he left Congress in late 1994 or early 1995. Mr. Washington also owned real property, including a duplex in Austin, Texas, two apartment buildings, a nightclub, and land in various locations throughout Texas, with the intention of providing for his children in the event of his untimely death. Mr. Washington filed for Chapter 11 bankruptcy on Jan. 11, 1991. Mr. Washington filed for bankruptcy with the intent to reorganize so that he could pay his tax debt. The case was later converted to a Chapter 7 proceeding. D & L EQUIPMENT: Dist. Ct. Says Collateral Description Sufficient ----------------------------------------------------------------- D & L Equipment Inc. challenges a Dec. 1, 2010 opinion and accompanying Dec. 9, 2010 order in which the Bankruptcy Court ruled that a Uniform Commercial Code financing statement filed by Wells Fargo Equipment Finance, Inc., sufficiently identified Wells Fargo's interest in the portion of the Debtor's inventory financed by Wells Fargo after it stepped into the shoes of a prior lender. The Debtor contends that the Bankruptcy Court erred, and that the financing statement relied on by Wells Fargo should be deemed effective, at best, to perfect Wells Fargo's security interest in the items financed by the prior lender, but not the items subsequently financed by Wells Fargo. On May 4, 2000, the Debtor and The CIT Group/Equipment Financing, Inc., entered into a security agreement, under which CIT agreed to provide commercial floor plan financing to the Debtor for its use in acquiring stone crushing equipment for its inventory. To secure repayment, the Debtor granted CIT a security interest in the stone crushing equipment acquired through this financing. In 2007, Wells Fargo stepped into CIT's shoes as a secured creditor when it purchased CIT's interest in the floor plan financing arrangement with the Debtor. On Oct. 17, 2007, Wells Fargo filed a UCC-3 amendment to the financing statement with the Michigan Secretary of State, identifying itself as the secured party. The collateral description, however, was not amended, but continued to reference equipment and inventory "financed by [CIT]." In a Sept. 6, 2011 Opinion and Order, Chief District Judge Gerald E. Rosen affirmed the Bankruptcy Court's ruling in all respects, saying the record in the case provides ample support for the Bankruptcy Court's conclusion that the defects in Wells Fargo's filings did not render them "seriously misleading." The case before the District Court is D & L Equipment Inc., Chapter 11, Appellant, v. Wells Fargo Equipment Finance, Inc., Appellee, Case No. 10-14965 (E.D. Mich.). A copy of Judge Rosen's decision is available at http://is.gd/OI0G81from Leagle.com. D & L Equipment Inc. owns a fleet of industrial crushing, screening and conveying equipment, and it sells and leases this equipment for use primarily in road construction and improvement. Based in Jackson, Michigan, D & L Equipment Inc. filed for Chapter 11 bankruptcy (Bankr. E.D. Mich. Case No. 10-72623) on Oct. 25, 2010. Thomas R. Morris, Esq., at Silverman & Morris, PLLC, in West Bloomfield, Michigan, serves as the Debtor's counsel. In its petition, the Debtor listed $1 million to $10 million in both assets and debts. DE LA ROSA: Case Summary & 8 Largest Unsecured Creditors -------------------------------------------------------- Debtor: De La Rosa Group, LLC 6500 Iron Horse Blvd. North Richland Hills, TX 76180 Bankruptcy Case No.: 11-45055 Chapter 11 Petition Date: September 2, 2011 Court: United States Bankruptcy Court Northern District of Texas (Ft. Worth) Judge: D. Michael Lynn Debtor's Counsel: Behrooz P. Vida, Esq. THE VIDA LAW FIRM, PLLC 3000 Central Drive Bedford, TX 76021 Tel: (817) 358-9977 Fax: (817) 358-9988 E-mail: filings@vidalawfirm.com Scheduled Assets: $805,786 Scheduled Debts: $1,392,255 A list of the Company's eight largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txnb11-45055.pdf The petition was signed by Virginia De La Rosa, manager. DIGITAL REALTY: Fitch Puts Rating on $607 Million Stock at 'BB+' ---------------------------------------------------------------- Fitch Ratings assigns a credit rating of 'BB+' to the $250 million 7% series E cumulative redeemable preferred stock issued by Digital Realty Trust, Inc. (NYSE: DLR). Net proceeds from the offering before the exercise of the underwriters' over-allotment option are expected to be contributed to the company's operating partnership, Digital Realty Trust, L.P., which will subsequently use the proceeds to repay borrowings under the company's revolving credit facility, to acquire additional properties, to fund development and redevelopment properties and for general corporate purposes. Fitch currently rates the company as follows: Digital Realty Trust, Inc. -- Issuer Default Rating (IDR) 'BBB'; -- $607.4 million preferred stock 'BB+'. Digital Realty Trust, L.P. -- IDR 'BBB'; -- $850 million unsecured revolving credit facility 'BBB'; -- $1.5 billion senior unsecured notes 'BBB'; -- $266.4 million exchangeable senior debentures 'BBB'. The Rating Outlook is Stable. DYNEGY INC: Holdings Acquires Direct Ownership of Dynegy Coal ------------------------------------------------------------- Dynegy Inc. announced that it has acquired direct ownership of Dynegy Coal Holdco, LLC (Coal Holdco), the indirect parent of the Company's subsidiary Dynegy Midwest Generation, LLC (CoalCo). As announced on Aug. 8, 2011, the Company established CoalCo as part of an internal restructuring designed to increase flexibility and optimize asset value by creating separate coal-fueled and gas- fueled power generation units, for which $1.7 billion in stand alone first lien financings were obtained. The transfer of Coal Holdco will help the Company delever its consolidated balance sheet by facilitating one or more potential transactions, which are currently under consideration by the Finance and Restructuring Committee of the Board. These potential transactions include exchanges of some or all of Dynegy Holdings' outstanding $3.5 billion in notes for new notes or cash. Those transactions may be implemented in privately-negotiated transactions or otherwise. The Company's management and Board of Directors concluded that the fair value of the acquired equity stake in Coal Holdco, after taking into account all debt obligations of CoalCo, including in particular its new $600 million, five-year senior secured term loan facility, is approximately $1.25 billion. This value was provided to Coal Holdco's former direct parent, Dynegy Gas Investments, LLC (DGI) through the Company's issuance of an undertaking to make proportionate payments at the times that Dynegy Holdings is obligated to make payments of principal and interest under its $1.1 billion of 7.75% notes due 2019 and its $175 million of 7.625% notes due 2026. The undertaking does not provide any rights or obligations with respect to any outstanding Dynegy Holdings notes, including the notes due in 2019 and 2026. Immediately after closing the transfer, the undertaking was assigned by DGI to its parent, Dynegy Holdings, for a note in the amount of $1.25 billion that matures in 2027. The undertaking provides for the reduction of the Company's obligations if it or its subsidiaries acquire or retire any of Dynegy Holdings' outstanding $3.5 billion of notes. About Dynegy Inc. Through its subsidiaries, Houston, Texas-based Dynegy Inc. (NYSE:DYN) -- http://www.dynegy.com/-- produces and sells electric energy, capacity and ancillary services in key U.S. markets. The power generation portfolio consists of approximately 12,200 megawatts of baseload, intermediate and peaking power plants fueled by a mix of natural gas, coal and fuel oil. Failed Sale The Troubled Company Reporter has chronicled Dynegy's attempts to sell itself. In August 2010, Dynegy struck a deal to be acquired by an affiliate of The Blackstone Group at $4.50 a share or roughly $4.7 billion. That offer was raised to $5.00 a share in November. Through Carl Icahn and investment fund Seneca's efforts, shareholders thumbed down both offers. In December 2010, an affiliate of Icahn commenced a tender offer to purchase all of the outstanding shares of Dynegy common stock for $5.50 per share in cash, or roughly $665 million in the aggregate. In February 2011, Icahn Enterprises L.P. terminated the proposed merger agreement with the Company after it failed to garner the required number of shareholder votes. Goldman, Sachs & Co. and Greenhill & Co., LLC, served as financial advisors and Sullivan & Cromwell LLP served as legal counsel to Dynegy on the sale efforts. Bankruptcy Warning Dynegy warned shareholders in March it might be forced into bankruptcy if it is unable to renegotiate the terms of its existing debt. The Company's balance sheet at March 31, 2011, showed $9.82 billion in total assets, $7.15 billion in total liabilities and $2.67 billion in total stockholders' equity. Ernst & Young LLP, in Houston, said Dynegy projects that it is likely that it will not be able to comply with certain debt covenants throughout 2011. "This condition and its impact on Dynegy Inc.'s liquidity raises substantial doubt about Dynegy Inc.'s ability to continue as a going concern." * * * In July 2011, Moody's downgraded Dynegy Holdings' probability of default rating to 'Ca' from 'Caa3'. "The downgrade of DHI's PDR and senior unsecured notes to Ca reflects the increased likelihood of a distressed debt exchange transaction occurring within the next several months following announcement of a corporate reorganization that seeks to modify asset ownership within DHI through the formation of several wholly-owned subsidiaries", said A.J. Sabatelle, Senior Vice President of Moody's. "Separate financing arrangements being established at these subsidiaries will have annual limits placed on the amount of cash flow that can be paid to their indirect parent, which Moody's believes raises default prospects for DHI's senior unsecured notes and the company's lease", added Mr. Sabatelle. ELIZABETH MITCHELL: Bankruptcy Court Won't Reopen Chapter 7 Case ---------------------------------------------------------------- Bankruptcy Judge Michael E. Romero rejected motions seeking reconsideration of the Court's order issued July 27, 2011, denying the Motion to Reopen Case Due to Administrative Errors and to Vacate Orders filed by Elizabeth Mitchell and the Motion to Reopen Case Due to Administrative Errors filed by Wayne Pratt. Involuntary Chapter 7 bankruptcy petitions were filed against Elizabeth Mitchell (Bankr. D. Colo. Case No. 07-10718) and Chameleon Entertainment Systems, Inc. (Bankr. D. Colo. Case No. 07-10719) on Jan. 30, 2007. The petitioning creditors, represented by attorney Lee Kutner, Esq., are Lois Alcorn, Thomas Alcorn, and David Noven. The involuntary cases were jointly administered. On Feb. 6, 2008, Mitchell's case was dismissed, and an order for relief entered in Chameleon's case following a stipulation among the parties. On June 3, 2009, Mitchell filed a Complaint for Fraud for Filing and Involuntary Petition in Bankruptcy and Fraud in the Inducement to Enter into a Settlement Agreement. On June 10, 2009, the Court entered an Order dismissing the Complaint because the bankruptcy case had been dismissed, so the Court lacked jurisdiction to hear the claims set forth in the Complaint. After the passage of nearly another 11 months, on April 23, 2010, James Heiman filed a Motion for Relief from Judgment/Order (Dismissal) Pursuant to Federal Rules of Bankruptcy Procedures 9024 and for Other Relief. The Court issued an Order denying that Motion on June 10, 2010. On Jan. 6, 2011, the Clerk of the Bankruptcy Court entered an order entitled Order Accepting Trustee's Report and Closing Case. On March 14, 2011, over three years after the original case had been dismissed, Mitchell filed a Motion to Reopen Case Due to Administrative Errors. The Petitioning Creditors objected. The Court denied the Motion to Reopen stating that the Stipulation, which included the Petitioning Creditors and Mitchell as signatory parties, provided for the functional equivalent of the abandonment or withdrawal of the involuntary petition filed by the Petitioning Creditors. No order for relief in the Mitchell involuntary action was ever entered before the entire involuntary proceeding was dismissed. As a result, no bankruptcy case was ever created to be reopened at this time. On April 6, 2011, Mitchell filed a Motion to Reopen Case Due to Administrative Errors and to Alter or Amend Judgment. The Court again denied the Motion. On June 3, 2011, Pratt filed his Motion to Reopen Case Due to Administrative Errors. In his Sept. 2, 2011 Order, Judge Romero held that the date for appealing the February 6, 2008 orders had long since passed when the Motions to Reopen were filed. Those Motions, and the current Motion to Reconsider, are really seeking either an appeal of those orders, or are seeking to present new claims based on assertions that the Settlement was the result of improper actions by the petitioning creditors and the parties' attorneys. "This Court can make no finding as to such claims. It can merely find, and does so find, that the Settlement was properly approved based on the record before the Court, and that the Movants have set forth no grounds upon which this Court can alter or amend its orders approving the settlement, dismissing the Mitchell case, entering the order for relief in the Chameleon case, or entering its succeeding orders detailed above, including the July 27, 2011 order. Therefore, the Court finds the Motion to Reconsider must be denied, and the above-captioned case will remain closed until such time as a judgment of a court of general jurisdiction may provide a basis for reopening the case," Judge Romero said. A copy of Judge Romero's request is available at http://is.gd/QDjhCCfrom Leagle.com. ENERGY EDGE: Corrects Form 10-Q; Posts $32,200 1st Qtr. Net Loss ---------------------------------------------------------------- On Aug. 22, 2011, Energy Edge Technologies Corporation filed Amendment No. 1 to its quarterly report on Form 10-Q for the three months ended June 30, 2011, to remedy an administrative error that occurred in filing the Form 10-Q such that the incorrect draft was filed. The Company reported a net loss of $32,280 on $285,922 of contract revenues for the three months ended June 30, 2011, compared with a net loss of $390,409 on $264,765 of contract revenues for the comparable period last year. The Company reported a net loss of $185,267 on $495,568 of contract revenues for the six months ended June 30, 2011, compared with a net loss of $401,098 on $576,224 of contract revenues for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $1.0 million in total assets, $834,321 in total liabilities, and stockholders' equity of $202,312. Silberstein Ungar, PLLC, in Bingham Farms, Michigan, expressed substantial doubt about Energy Edge Technologies' ability to continue as a going concern. The independent auditors noted that the Company has limited working capital, and has incurred a significant loss from operations. A copy of the Form 10-Q/A is available at http://is.gd/LVR8dv Bridgewater, N.J.-based Energy Edge Technologies Corporation provides energy engineering and services specializing in the development and implementation of advanced, turnkey projects to reduce energy losses and increase the efficiency of new and existing buildings. ENVIRONMENTAL SOLUTIONS: Posts $3.9 Million Net Loss in Q2 2011 --------------------------------------------------------------- Environmental Solutions Worldwide, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $3.89 million on $3.05 million of sales for the three months ended June 30, 2011, compared with net income of $152,067 on $3.60 million of sales for the same period last year. The Company reported a net loss of $7.02 million on $5.10 million of sales for the six months ended June 30, 2011, compared with a net loss of $5.85 million on $ million of sales for the same period of 2010. The Company's balance sheet at June 30, 2011, showed $11.35 million in total assets, $5.03 million in total liabilities, and stockholders' deficit of $6.33 million. As reported in the TCR on April 6, 2011, MSCM LLP, in Toronto, Canada, expressed substantial doubt about Environmental Solutions' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that of the Company's experience of negative cash flows from operations and its dependency upon future financing. A copy of the Form 10-Q is available at http://is.gd/nhfwJf Ontario, Canada-based Environmental Solutions Worldwide, Inc., is engaged in the design, development, manufacturing and sales of emissions technologies and emissions testing and environmental certification services with its primary focus on the North American on-road and off-road diesel retrofit market. ESW currently manufactures and markets a line of catalytic emission control and enabling technologies for a number of applications. EPICEPT CORP: Okayed for Primary Listing on Nasdaq OMX ------------------------------------------------------ EpiCept Corporation announced that Nasdaq OMX Stockholm AB has approved the Company's request for a primary listing of its common stock on the Nasdaq OMX Stockholm Exchange. The Company previously had a secondary listing on Nasdaq OMX Stockholm. EpiCept sought the change in status in recognition of the Company's large Swedish shareholder base and the historical trading volume of the Company's common stock on the Exchange. The change in status became effective Sept. 5, 2011, and does not affect the Company's short name and order book I.D. on the Exchange or the trading of its common stock on the Nasdaq Capital Market. The Company will continue to make quarterly and other regulatory filings with the Securities and Exchange Commission. EpiCept President & CEO Jack Talley commented, "We are very pleased to be awarded a primary listing on the Nasdaq OMX Stockholm Exchange. This successful action confirms our desire to more broadly meet the needs of our shareholders in Sweden and in other countries that prefer to invest in EpiCept and trade our common stock on a liquid, high quality exchange outside the United States." About EpiCept Corporation Tarrytown, N.Y.-based EpiCept Corporation (Nasdaq and Nasdaq OMX Stockholm Exchange: EPCT) -- http://www.epicept.com/-- is focused on the development and commercialization of pharmaceutical products for the treatment of cancer and pain. The Company's lead product is Ceplene(R), approved in the European Union for the remission maintenance and prevention of relapse in adult patients with Acute Myeloid Leukemia (AML) in first remission. In the United States, a pivotal trial is scheduled to commence in 2011. The Company has two other oncology drug candidates currently in clinical development that were discovered using in-house technology and have been shown to act as vascular disruption agents in a variety of solid tumors. The Company's pain portfolio includes EpiCept(TM) NP-1, a prescription topical analgesic cream in late-stage clinical development designed to provide effective long-term relief of pain associated with peripheral neuropathies. The Company reported a net loss of $15.54 million on $994,000 of revenue for the year ended Dec. 31, 2010, compared with a net loss of $38.81 million on $414,000 of revenue during the prior year. The Company's balance sheet at June 30, 2011, showed $16.84 million in total assets, $26.57 million in total liabilities, and a $9.72 million total stockholders' deficit. The Company's recurring losses from operations and the Company's stockholders' deficit raise substantial doubt about its ability to continue as a going concern and, as a result, the Company's independent registered public accounting firm, Deloitte & Touche LLP, in Parsippany, New Jersey, included an explanatory paragraph in its report on the Company's consolidated financial statements for the year ended Dec. 31, 2010, which was included in our Annual Report on Form 10-K, with respect to this uncertainty. EVERGREEN SOLAR: Wants to Hire UBS Securities as Investment Banker ------------------------------------------------------------------ Evergreen Solar, Inc., asks the U.S. Bankruptcy Court for the District of Delaware for permission to employ UBS Securities, LLC as investment banker and financial advisor. UBS will, among other things: a) advise and assist the Debtor in analyzing, structuring and negotiating the financial aspects of any "restructuring transaction"; b) advise and assist the Debtor in formulating a plan of reorganization or analyzing any proposed plan, including assisting in the plan negotiation and confirmation process, assisting in the preparation of any documents needed in this Chapter 11 case (including after any sale of substantially all the assets of the Debtor), and assisting the Debtor in connection with any restructuring transaction. c) assist the Debtor in identifying and evaluating candidates for potential sale transactions involving any assets or operations of the Debtor, including, without limitation, the Debtor's Devens facility (or equipment within the Devens facility) and certain LBIE claims, effectuated prior to, during the pendency of, or subsequent to consummation of the Chapter 11 case, including advising the Debtor in connection with negotiations and aiding in the consummation of such sale transactions including, without limitation, the preparation of offering memoranda related thereto. With respect to a sale of the LBIE claims and the Devens assets, the Debtor expects other brokers will take the lead on that marketing process, and UBS will provide any services it is well positioned to provide as reasonably requested by the other brokers or the Debtor. Steven D. Smith, global head of the restructuring group, Douglas P. Lane, managing director in the restructuring group, and David Dolezal, co-head of the alternative energy group, will be the Debtor's primary contacts and advisors for the assignment. Messrs. Smith, Lane, and Dolezal may also utilize the assistance of other UBS employees as necessary. The Debtor agreed to pay UBS pursuant to this fee structure: 1. a monthly cash advisory fee of $150,000; 2. a $4,000,000 restructuring transaction fee; and 3. reimbursement for all of UBS's reasonable out-of-pocket expenses incurred in connection with the performance of its services under the engagement letter, including reasonable fees, disbursements and other charges of UBS's legal counsel, provided that the legal counsel's fees will not exceed $25,000 for due diligence performed on the Debtor and $250,000 in the aggregate without the prior written consent of the Debtor. To the best of the Debtor's knowledge, UBS is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The Debtor set an Oct. 7 hearing on the requested employment of UBS. Objections, if any, are due Sept. 30, 2011, at 4:00 p.m. (prevailing Eastern time.) About Evergreen Solar Evergreen Solar, Inc. -- http://www.evergreensolar.com/-- develops, manufactures and markets String Ribbon solar power products using its proprietary, low-cost silicon wafer technology. The Company's patented wafer manufacturing technology uses significantly less polysilicon than conventional processes. Evergreen Solar's products provide reliable and environmentally clean electric power for residential and commercial applications globally. The Marlboro, Mass.-based Company filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 11-12590) on Aug. 15, 2011, before Judge Mary F. Walrath. The Company's balance sheet at April 2, 2011, showed $373,972,000 in assets, $455,506,000 in total liabilities, and a stockholders' deficit of $81,534,000. Ronald J. Silverman, Esq., and Scott K. Seamon, Esq., at Bingham McCutchen LLP, serve as general bankruptcy counsel to the Debtor. Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as co-counsel. Zolfo Cooper LLC is the financial advisor. Epiq Bankruptcy Solutions has been tapped as claims agent. In conjunction with the Chapter 11 filing, the Company entered into a restructuring support agreement with certain holders of more than 70% of the outstanding principal amount of the Company's 13% convertible senior secured notes. As part of the bankruptcy process the Company will undertake a marketing process and will permit all parties to bid on its assets, as a whole or in groups pursuant to 11 U.S.C. Sec. 363. An entity formed by the supporting noteholders, ES Purchaser, LLC, entered into an asset purchase agreement with the Company to serve as a "stalking-horse" and provide a "credit-bid" pursuant to the Bankruptcy Code for assets being sold. The supporting noteholders are represented by Michael S. Stainer, Esq., and Natalie E. Levine, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York. EVERGREEN SOLAR: Court OKs Bingham McCutchen as Counsel ------------------------------------------------------- Evergreen Solar, Inc., sought and obtained permission from the U.S. Bankruptcy Court for the District of Delaware to employ Bingham McCutchen LLP as lead restructuring counsel effective as of the Petition Date. Bingham McCutchen's services to the Debtor include: a. advising the Debtor with respect to its powers and duties as debtor in possession in the continued management and operation of its business and properties; b. advising and consulting on the conduct of the chapter 11 case, including all of the legal and administrative requirements of operating in chapter 11; c. attending meetings and negotiating with representatives of the creditors and other parties in interest; d. taking all necessary action to protect and preserve the Debtor's estate, including prosecuting actions on the Debtor's behalf, defending any action commenced against the Debtor and representing the Debtor's interests in negotiations concerning litigation in which the Debtor is involved, including objections to claims filed against the Debtor's estate; e. preparing all pleadings, including motions, applications, answers, orders, reports and papers necessary or otherwise beneficial to the administration of the Debtor's estate; f. representing the Debtor in connection with obtaining authorized use of cash collateral; g. advising the Debtor in connection with any potential sale of its assets or business; h. appearing before the Court and any appellate courts to represent the interests of the Debtor's estate; i. consulting with the Debtor regarding tax, environmental, employment, pension, real estate and other matters; j. taking any necessary action on behalf of the Debtor to negotiate, prepare on behalf of the Debtor and obtain approval of a Chapter 11 plan and all documents related thereto; and k. performing all other necessary or otherwise beneficial legal services for the Debtor in connection with the prosecution of the chapter 11 case, including: (i) analyzing the Debtor's leases and contracts and the assumptions, rejections or assignments thereof (ii) analyzing the validity of liens against the Debtor; and (iii) advising the Debtor on corporate and litigation matters. The Debtor will pay Bingham McCutchen according to these hourly rates, in addition to necessary out-of-pocket expenses: Partners $605 to $1,095 Of Counsel $425 to $1,085 Counsel/Associates $375 to $730 Paraprofessionals $135 to $390 Staff Attorneys $185 to $320 Ronald J. Silverman, Esq., a partner at Bingham McCutchen, assures the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. . About Evergreen Solar Evergreen Solar, Inc. -- http://www.evergreensolar.com/-- develops, manufactures and markets String Ribbon solar power products using its proprietary, low-cost silicon wafer technology. The Company's patented wafer manufacturing technology uses significantly less polysilicon than conventional processes. Evergreen Solar's products provide reliable and environmentally clean electric power for residential and commercial applications globally. The Marlboro, Mass.-based Company filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 11-12590) on Aug. 15, 2011, before Judge Mary F. Walrath. The Company's balance sheet at April 2, 2011, showed $373,972,000 in assets, $455,506,000 in total liabilities, and a stockholders' deficit of $81,534,000. Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as co-counsel. Zolfo Cooper LLC is the financial advisor. Epiq Bankruptcy Solutions has been tapped as claims agent. In conjunction with the Chapter 11 filing, the Company entered into a restructuring support agreement with certain holders of more than 70% of the outstanding principal amount of the Company's 13% convertible senior secured notes. As part of the bankruptcy process the Company will undertake a marketing process and will permit all parties to bid on its assets, as a whole or in groups pursuant to 11 U.S.C. Sec. 363. An entity formed by the supporting noteholders, ES Purchaser, LLC, entered into an asset purchase agreement with the Company to serve as a "stalking-horse" and provide a "credit-bid" pursuant to the Bankruptcy Code for assets being sold. The supporting noteholders are represented by Michael S. Stainer, Esq., and Natalie E. Levine, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York. EVERGREEN SOLAR: Court OKs Hilco as Marketing & Sales Agent ----------------------------------------------------------- Evergreen Solar, Inc., sought and obtained permission from the U.S. Bankruptcy Court for the District of Delaware to employ Hilco Industrial LLC as exclusive marketing and sales agent, effective as of the Petition Date. The Debtor needs Hilco Industrial to: * develop an advertising and marketing plan for the Debtor's assets; * implement the advertising and marketing plan as deemed necessary by Hilco to maximize net recovery on the assets; * prepare for the sale of the assets, including gathering specifications and photographs for pictorial brochures; * make the assets available for viewing by potential buyers on an appointment-only basis; * work with the Debtor for the sale of assets either through a negotiated sale or auction for cash to the highest bidder "as is," "where is," and in accordance with the terms of the AMA; * work with the Debtor to set up a mutually acceptable procedure for collecting, investing (if any), protecting and disbursing purchaser deposits and sales proceeds, in one or more accounts financial institutions reasonably acceptable to both parties, in compliance with applicable sales, use and other tax laws and regulations and with the rights of the Debtor's creditors, which account(s) may be opened with a third party escrow per a mutually agreeable escrow agreement; * submit a complete auction report to the Debtor within three weeks after the collection of funds from the auction; * coordinate the site clearance of the sold assets; and * certain additional services. Under an asset marketing agreement, Hilco Industrial will engage in the systematic marketing and sales process, consisting of the four phases or options, with the timing and approach to each phase to be mutually agreed by Hilco and the Debtor: -- Phase One: Turn-Key Sale of the Assets along with a sublease, assignment or Company purchase then sale of the Facility; -- Phases Two and Three: Private Sales/Liquidation of the Assets as complete lines and components thereof; and -- Phase Four: WebCast Auction Sale for balance of the Assets, if required. The Debtor will pay Hilco Industrial according to these plans: (a) Phase I Commission: Hilco will receive a one-time commission based on the gross proceeds from the sale of the Assets or the Facility in accordance with a schedule, in the event of a Phase 1 sale of the Assets. "Gross Proceeds" will mean the aggregate cash or non-cash consideration received by the Debtor as consideration for the Assets and sublease, assignment or Debtor purchase then sale of Facility, if applicable, and subject to the carve-outs for certain third parties and their clients. The amounts payable will be paid in a lump sum at closing for the applicable Assets. Gross Proceeds Commission to Hilco -------------- ------------------- $0 to $65,000,000 5% $65,000,001 to $75,000,000 6% $75,000,001 and over 7.5% Phase I Carveouts: Before executing the AMA, the Debtor had been in discussions with these companies regarding a potential sale or sales: AUO Solar, Sovello, and Evirotech, or any of the owned subsidiaries of these entities and any entity wholly owned by these entities created for the purpose of consummating a transaction to purchase an Asset. If any of the above listed or described companies purchases Assets, Hilco's commission will be calculated as: Gross Proceeds Commission to Hilco -------------- ------------------- $0 to $65,000,000 1.5% $65,000,001 to $75,000,000 5% (b) Phase II through IV Commission: Alternatively, in the event of sales of the Assets under Phase II & III or Phase IV, then, in total consideration of its services and obligations, subject to the rebate obligations above, Hilco will be entitled to charge and receive for its own account an industry standard gross buyer's premium in connection with the sale of the Assets of 15% for Assets that are sold or auctioned. For purposes of clarification, the Buyer's Premium is a fee charged in addition to the sale price and is paid by the buyer of the Asset or Assets. Such Buyer's Premium may be segregated from the process of collection of proceeds from the applicable buyer(s) as mutually agreed by the Parties, and Hilco will receive the Buyer's Premium amounts net of portions payable to the Debtor. The Debtor will be entitled to receive portions of the collected Buyer's Premiums in accordance with this schedule: Gross Proceeds Portion to Debtor Net to Hilco -------------- ----------------- ------------ $0.00 to $20,000,000 5% 10% $20,000,001 to $25,000,000 3% 12% $25,000,001 to $30,000,000 2% 13% $30,000,001 and over 1% 14% In the event the Facility, including the leasehold interest, is sold in Phase II through IV, Hilco will earn a fee equal to 5% of the Gross Sale Proceeds (6% to the extent there is a cooperating broker involved). For purposes hereof, "Gross Sale Proceeds" will mean the aggregate cash or non-cash consideration received by the Debtor in consideration of the Facility, including the leasehold interest. Section IV.D of the AMA will be amended to include: "The Debtor shall reimburse Hilco for all reasonable and customary expenses incurred in connection with the sale of the Facility up to $25,000, provided that, Hilco shall not incur any expenses without first obtaining the Debtor's consent." Hilco assures the Court that it is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Evergreen Solar Evergreen Solar, Inc. -- http://www.evergreensolar.com/-- develops, manufactures and markets String Ribbon solar power products using its proprietary, low-cost silicon wafer technology. The Company's patented wafer manufacturing technology uses significantly less polysilicon than conventional processes. Evergreen Solar's products provide reliable and environmentally clean electric power for residential and commercial applications globally. The Marlboro, Mass.-based Company filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 11-12590) on Aug. 15, 2011, before Judge Mary F. Walrath. The Company's balance sheet at April 2, 2011, showed $373,972,000 in assets, $455,506,000 in total liabilities, and a stockholders' deficit of $81,534,000. Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as co-counsel. Zolfo Cooper LLC is the financial advisor. Epiq Bankruptcy Solutions has been tapped as claims agent. In conjunction with the Chapter 11 filing, the Company entered into a restructuring support agreement with certain holders of more than 70% of the outstanding principal amount of the Company's 13% convertible senior secured notes. As part of the bankruptcy process the Company will undertake a marketing process and will permit all parties to bid on its assets, as a whole or in groups pursuant to 11 U.S.C. Sec. 363. An entity formed by the supporting noteholders, ES Purchaser, LLC, entered into an asset purchase agreement with the Company to serve as a "stalking-horse" and provide a "credit-bid" pursuant to the Bankruptcy Code for assets being sold. The supporting noteholders are represented by Michael S. Stainer, Esq., and Natalie E. Levine, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York. EVERGREEN SOLAR: Court OKs Pachulski Stang as Co-Counsel -------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware has granted Evergreen Solar, Inc.'s application to employ Pachulski Stang Ziehl & Jones LLP as co-counsel. Led by Laura Davis Jones, the firm will charge the Debtor's estates at hourly rates ranging from $245 to $895, About Evergreen Solar Evergreen Solar, Inc. -- http://www.evergreensolar.com/-- develops, manufactures and markets String Ribbon solar power products using its proprietary, low-cost silicon wafer technology. The Company's patented wafer manufacturing technology uses significantly less polysilicon than conventional processes. Evergreen Solar's products provide reliable and environmentally clean electric power for residential and commercial applications globally. The Marlboro, Mass.-based Company filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 11-12590) on Aug. 15, 2011, before Judge Mary F. Walrath. The Company's balance sheet at April 2, 2011, showed $373,972,000 in assets, $455,506,000 in total liabilities, and a stockholders' deficit of $81,534,000. Ronald J. Silverman, Esq., and Scott K. Seamon, Esq., at Bingham McCutchen LLP, serve as general bankruptcy counsel to the Debtor. Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as co-counsel. Zolfo Cooper LLC is the financial advisor. Epiq Bankruptcy Solutions has been tapped as claims agent. In conjunction with the Chapter 11 filing, the Company entered into a restructuring support agreement with certain holders of more than 70% of the outstanding principal amount of the Company's 13% convertible senior secured notes. As part of the bankruptcy process the Company will undertake a marketing process and will permit all parties to bid on its assets, as a whole or in groups pursuant to 11 U.S.C. Sec. 363. An entity formed by the supporting noteholders, ES Purchaser, LLC, entered into an asset purchase agreement with the Company to serve as a "stalking-horse" and provide a "credit-bid" pursuant to the Bankruptcy Code for assets being sold. The supporting noteholders are represented by Michael S. Stainer, Esq., and Natalie E. Levine, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York. EVERGREEN SOLAR: Court OKs Zolfo Cooper as Financial Advisor ------------------------------------------------------------ Evergreen Solar, Inc., sought and obtained permission from the U.S. Bankruptcy Court for the District of Delaware to employ Zolfo Cooper LLC as bankruptcy consultants and special financial advisors, effective as of the Petition Date. The Debtor needs Zolfo Cooper to perform these services: (a) advise and assist management in organizing the Debtor's resources and activities so as to effectively and efficiently plan, coordinate and manage the Chapter 11 process and communicate with customers, lenders, suppliers, employees, shareholders and other parties in interest; (b) assist management in designing and implementing programs to manage or divest assets, improve operations, reduce costs and restructure as necessary with the objective of rehabilitating the business; (c) advise the Debtor concerning interfacing with Official Committees, other constituencies and their professionals, including the preparation of financial and operating information required by such parties or the Bankruptcy Court; (d) advise and assist management in the development of a Chapter 11 Plan, including the related assumptions and rationale, along with other information to be included in the Disclosure Statement; (e) advise and assist the Debtor in forecasting, planning, controlling and other aspects of managing cash, and, if necessary, obtaining DIP or Exit financing; (f) advise the Debtor with respect to resolving disputes and otherwise managing the claims process; (g) advise and assist the Debtor in negotiating a Chapter 11 Plan with the various creditor and other constituencies; (h) as requested, render expert testimony concerning the feasibility of a Chapter 11 Plan and other matters that may arise in the case; and (i) provide other services as may be required by the Debtor. The Debtor assures the Court that Zolfo Cooper is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Evergreen Solar Evergreen Solar, Inc. -- http://www.evergreensolar.com/-- develops, manufactures and markets String Ribbon solar power products using its proprietary, low-cost silicon wafer technology. The Company's patented wafer manufacturing technology uses significantly less polysilicon than conventional processes. Evergreen Solar's products provide reliable and environmentally clean electric power for residential and commercial applications globally. The Marlboro, Mass.-based Company filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 11-12590) on Aug. 15, 2011, before Judge Mary F. Walrath. The Company's balance sheet at April 2, 2011, showed $373,972,000 in assets, $455,506,000 in total liabilities, and a stockholders' deficit of $81,534,000. Ronald J. Silverman, Esq., and Scott K. Seamon, Esq., at Bingham McCutchen LLP, serve as general bankruptcy counsel to the Debtor. Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as co-counsel. Epiq Bankruptcy Solutions has been tapped as claims agent. In conjunction with the Chapter 11 filing, the Company entered into a restructuring support agreement with certain holders of more than 70% of the outstanding principal amount of the Company's 13% convertible senior secured notes. As part of the bankruptcy process the Company will undertake a marketing process and will permit all parties to bid on its assets, as a whole or in groups pursuant to 11 U.S.C. Sec. 363. An entity formed by the supporting noteholders, ES Purchaser, LLC, entered into an asset purchase agreement with the Company to serve as a "stalking-horse" and provide a "credit-bid" pursuant to the Bankruptcy Code for assets being sold. The supporting noteholders are represented by Michael S. Stainer, Esq., and Natalie E. Levine, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York. EXPERT ROOFING: Files for Chapter 13 Bankruptcy Protection ---------------------------------------------------------- Corey Jones at the Capital-Journal reports that Jeannine Koranda, spokeswoman for the Kansas Department of Revenue, said Expert Roofing, a roofing company in Topeka, Kansas, filed for Chapter 13 bankruptcy in a Kansas City court. The report says the owner, Daniel G. Bratcher, confirmed the filing. Ms. Koranda said revenue department agents, along with Shawnee County sheriff's officers executed a tax warrant at Expert Roofing, 2730 N.E. Spring Creek Drive, and seized all assets before shuttering the business. According to the report, Ms. Koranda said her office later was notified of the bankruptcy filing. She said the agency could have contested the action, but instead released the assets back to Bratcher so the business could continue operating. She said closing a business is a last resort. Mr. Bratcher said he filed for Chapter 13 bankruptcy for the "explicit purpose" of paying off the tax debt. "We're going to set a payment plan up within the confines of the Chapter 13, and we're going to pay everything we owe the state back," he said. FAIRPOINT COMMUNICATIONS: To Slash 400 Jobs in Coming Months ------------------------------------------------------------ Rich Karpinski at Connected Planet reports that FairPoint said it plans to cut 400 jobs in the coming months. According to the report, FairPoint said the 400 job cuts will include 100 management positions. An additional 300 union employees will be affected and the company said it will follow "prescribed steps" in its collective bargaining agreement to manage that process. Severance packages will total between $7 million and $13 million, the company said. The report relates that FairPoint said it will save about $34 million in annualized operating expenses with the cuts, with the full benefit realized next year. About FairPoint Communications FairPoint Communications, Inc. (NYSE: FRP) -- http://www.fairpoint.com/-- owns and operates local exchange companies in 18 states offering advanced communications with a personal touch, including local and long distance voice, data, Internet, television and broadband services. FairPoint is traded on the New York Stock Exchange under the symbols FRP and FRP.BC. FairPoint and its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 09-16335) on Oct. 26, 2009. Rothschild Inc. is acting as financial advisor for the Company; AlixPartners, LLP, as the restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP is the Company's counsel. BMC Group is the claims and notice agent. As of June 30, 2009, FairPoint reported $3.24 billion in total assets, $321.41 million in total current liabilities, $2.91 billion in total long-term liabilities, and $1.23 million in stockholders' equity. Andrews Kurth is counsel to the Official Committee of Unsecured Creditors. Altman Vilandrie is the operational consultant to the Creditors' Committee. Verrill Dana is the Creditors' Committee's special regulatory counsel. Jeffries serves as the Creditors' Committee's financial advisor. FairPoint Communications on Jan. 24, 2011, successfully completed its balance sheet restructuring and emerged from Chapter 11. As a result of the restructuring, FairPoint has reduced its outstanding debt by approximately 64%, from approximately $2.8 billion (including interest rate swap liabilities and accrued interest) to approximately $1.0 billion. In addition, the Company has a $75 million revolving credit facility available for working capital and general corporate purposes. Existing stock in the Company was cancelled and holders did not receive any distributions. FAIRPOINT COMMUNICATIONS: Moody's Says Reductions Credit Positive ----------------------------------------------------------------- Moody's Investors Service said Fairpoint Communications Inc.'s ("Fairpoint", B2/stable) plans to reduce its workforce by 400 employees, or approximately 10% in 2011 does not immediately influence its ratings or outlook. This development however is positive for Fairpoint's credit profile as the cost savings are more aggressive than Moody's prior estimates and will meaningfully improve the company's free cash flow. The principal methodology used in this rating was Global Telecommunications Industry Methodology published in December 2010. FAITH CHRISTIAN: Plan Outline Hearing Scheduled for Oct. 4 ---------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Florida will convene a status hearing on Oct. 4, 2011, at 10:30 a.m., to consider adequacy of the amended disclosure statement explaining Faith Christian Family Church of Panama City Beach, Inc.'s plan of reorganization. As reported in the Troubled Company Reporter on Aug 9, 2011, according to the First Amended Disclosure Statement, filed on July 5, 2011, the Debtor will fund the Plan from general operations of the ministry. The ministry has also listed the parsonage for sale at a price of $4.2 million. Should the parsonage sell prior to confirmation, the Debtor will be able to pay Suntrust and all creditors in full, except for Margie Negrin Bishop (Class 14) whose claim is disputed. The secured claim of Suntrust Bank, owed $2,924,127 plus accrued interest, will be satisfied from the surrender of real property. The Debtor is proposing three options, each of which consists of the surrender of real property in full satisfaction of the debt. Allowed unsecured claims of less than $1,200 will be paid in full at no interest upon the effective date of confirmation. General unsecured claim of Suntrust for a Visa card in the approximate amount of $15,309 will be paid in full at 6% simple interest over 60 months. Equity interest holders will retain their positions as members of the not for profit corporation. A copy of the First Amended Disclosure Statement is available at: http://bankrupt.com/misc/faithchristian.1stamendedDS.pdf Based in Panama City Beach, Florida, Faith Christian Family Church of Panama City Beach Inc., dba Faith Christian Family Church, is a not for profit corporation. The church filed for Chapter 11 bankruptcy protection (Bankr. N.D. Fla. Case No. 11-50288) on May 24, 2011. The Debtor disclosed $11,339,469 in assets, and $3,361,477 in debts as of the Chapter 11 filing. Charles M. Wynn, Esq., at Charles M. Wynn Law Offices, P.A., serves as the Debtor's bankruptcy counsel. FANNIE MAE: Settlement With Regulators Said to Be Near ------------------------------------------------------ American Bankruptcy Institute reports that regulators are nearing a settlement with Fannie Mae and Freddie Mac over whether the mortgage finance giants adequately disclosed their exposure to risky subprime loans, bringing to a close a three-year investigation. About Fannie Mae Federal National Mortgage Association, aka Fannie Mae, is a government-sponsored enterprise that was chartered by U.S. Congress in 1938 to support liquidity, stability and affordability in the secondary mortgage market, where existing mortgage-related assets are purchased and sold. The Company's balance sheet at Dec. 31, 2010 showed $3.222 trillion in total assets, $3.224 trillion in total liabilities and a $2.52 billion total deficit. Fannie Mae has been under conservatorship, with the Federal Housing Finance Agency acting as conservator, since September 6, 2008. As conservator, FHFA succeeded to all rights, titles, powers and privileges of the company, and of any shareholder, officer or director of the company with respect to the company and its assets. The conservator has since delegated specified authorities to Fannie Mae's Board of Directors and has delegated to management the authority to conduct day-to-day operations. The U.S. Department of the Treasury owns Fannie Mae's senior preferred stock and a warrant to purchase 79.9% of its common stock, and Treasury has made a commitment under a senior preferred stock purchase agreement to provide Fannie with funds under specified conditions to maintain a positive net worth. FIREKEEPERS DEVELOPMENT: S&P Affirms 'B+' Issuer Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services revised its rating outlook on Battle Creek, Mich.-based FireKeepers Development Authority (FDA or the Authority), the operator of the FireKeepers Casino, to positive from stable. "We also affirmed our 'B+' issuer credit rating on the Authority," S&P said. "Our rating outlook revision to positive from stable reflects continued strong performance, despite the recent opening of additional competition in the region," said Standard & Poor's credit analyst Michael Halchak, "and our expectations for similar performance over the intermediate term, which would likely result in credit measures which support a higher rating." "Additionally, we expect that the Nottawaseppi Huron Band of the Potawatomi (the Tribe) will provide greater clarity around its longer term financial policy in the coming year," S&P said. FOGO DE CHAO: S&P Gives 'B' Corp. Credit Rating; Outlook Stable --------------------------------------------------------------- Standard & Poor's Rating Services assigned its 'B' corporate credit rating to U.S. and Brazilian restaurant operator Fogo de Chao Churrascaria Holdings LLC (Fogo). The outlook is stable. "At the same time, we assigned our 'B+' issue-level rating to the company's senior secured first-lien credit facility, which consists of a $195 million six-year term loan and a $10 million five-year revolver. The recovery rating is '2', indicating our expectation of substantial (70% to 90%) recovery for lenders in the event of a payment default," S&P related. Private-equity firm GP Investments used the proceeds from the term loan to fund the purchase of the remaining 65% ownership interest in Fogo, which was held by the company's founding members. GP Investments had originally acquired 35% ownership interest in Fogo in 2006. Accordingly, the company holds 100% of the ownership stake in Fogo. "The ratings on Fogo reflect our expectation that the company will remain substantially leveraged despite some modest earnings growth and debt paydown," said Standard & Poor's credit analyst Mariola Borysiak. "Based on our projection of credit ratios we see the company's financial risk profile as aggressive." "In addition," added Ms. Borysiak, "we consider Fogo's business risk profile vulnerable because of a very small revenue and EBITDA base, intense competition in the restaurant space, and particular susceptibility of the company's fine dining niche to economic conditions." "We view Fogo's capital structure to be aggressive. Pro forma for the transaction, leverage is about 5x at June 2011 quarter-end and EBITDA interest coverage is close to 3x." These ratios are slightly better than medians for the 'B' rating, but are in line with many similarly rated restaurant companies. FREDDIE MAC: Settlement With Regulators Said to Be Near ------------------------------------------------------- American Bankruptcy Institute reports that regulators are nearing a settlement with Fannie Mae and Freddie Mac over whether the mortgage finance giants adequately disclosed their exposure to risky subprime loans, bringing to a close a three-year investigation. About Freddie Mac Based in McLean, Virginia, the Federal Home Loan Mortgage Corporation, known as Freddie Mac (OTCBB: FMCC) -- http://www.FreddieMac.com/-- was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters. Freddie Mac is under conservatorship and is dependent upon the continued support of Treasury and the Federal Housing Finance Agency acting as conservator to continue operating its business. GARLOCK SEALING: Seeks to Terminate DIP Financing with BoA ---------------------------------------------------------- Garlock Sealing Technologies LLC and its debtor affiliates seek authority from the U.S. Bankruptcy Court for the Western District of North Carolina, Charlotte Division, to terminate certain debtor-in-possession financing arrangements with Bank of America, N.A., and enter into a cash collateral agreement. Shelley K. Abel, Esq., at Rayburn Cooper & Durham, P.A., in Charlotte, North Carolina, tells the Court that the Debtors have not needed the funds available to them under the DIP Facility, and they have not incurred any debt to BofA, with the exception of certain charges that may have accrued in connection with the Debtors' use of BofA banking products and outstanding undrawn letters of credit. As of August 30, 2011, Garlock holds cash reserves of more than $100 million, Mr. Abel says. The Debtors submit that the continued costs associated with the DIP Facility cannot be justified when there is no foreseeable need for the incursion of debt during the pendency of their bankruptcy cases given the considerable cash accumulated since the Petition Date. In order to effect full payment of the obligations in conformity with the DIP Loan Agreement's requirements for terminating the commitment, and to secure all charges that may accrue in connection the Debtor's use of DIP Lender's banking products that may arise after the DIP Financing Termination, Garlock and Garrison Litigation Management Group, Ltd., desire to execute in favor of the DIP Lender as cash collateral agreement regarding standby letter of credit and bank products. Under the Cash Collateral Agreement, Garlock and Garrison will grant to DIP Lender a lien on and security interest in the cash collateral account and all balances therein and proceeds thereof to secure all obligations under the Cash Collateral Agreement. About Garlock Sealing Headquartered in Palmyra, New York, Garlock Sealing Technologies LLC is a unit of EnPro Industries, Inc. (NYSE: NPO). For more than a century, Garlock has been helping customers efficiently seal the toughest process fluids in the most demanding applications. On June 5, 2010, Garlock filed a voluntary Chapter 11 petition (Bankr. W.D. N.C. Case No. 10-31607) in Charlotte, North Carolina, to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code. The Debtor estimated $500 million to $1 billion in assets and up to $500 million in debts as of the Petition Date. Affiliates The Anchor Packing Company and Garrison Litigation Management Group, Ltd., also filed for bankruptcy. The filing covers only Garlock operations in Palmyra, New York and Houston, Texas. Garlock Rubber Technologies, Garlock Helicoflex, Pikotek, Technetics, Garlock Europe and Garlock operations in Canada, Mexico or Australia are not affected by the filing, nor is EnPro Industries or any other EnPro operating subsidiary. Albert F. Durham, Esq., at Rayburn Cooper & Durham, P.A., represents the Debtor in its Chapter 11 effort. Garland S. Cassada, Esq., at Robinson Bradshaw & Hinson, serves as counsel for asbestos matters. The Official Committee of Asbestos Personal Injury Claimants in the Chapter 11 cases is represented by Travis W. Moon, Esq., at Hamilton Moon Stephens Steele & Martin, PLLC, in Charlotte, NC, Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, in New York, and Trevor W. Swett III, Esq., Leslie M. Kelleher, Esq., and Jeanna Rickards Koski, Esq., in Washington, D.C. 20005. Joseph W. Grier, III, the Court-appointed legal representative for future asbestos claimants, has retained A. Cotten Wright, Esq., at Grier Furr & Crisp, PA, and Richard H. Wyron, Esq., and Jonathan P. Guy, Esq., at Orrick, Herrington & Sutcliffe LLP, as his co- counsel. About 124,000 asbestos claims are pending against Garlock in stateand federal courts across the country. The Company says majority of pending asbestos actions against it is stale and dormant -- almost 110,000 or 88% were filed more than four years ago and more than 44,000 or 35% were filed more than 10 years ago. GENTA INC: Has 429.4 Million Outstanding Common Shares ------------------------------------------------------ The number of outstanding shares of Genta Incorporated common stock par value $0.001 as of Sept. 9, 2011, was 429,392,767. About Genta Incorporated Berkeley Heights, New Jersey-based Genta Incorporated (OTC BB: GNTA) -- http://www.genta.com/-- is a biopharmaceutical company engaged in pharmaceutical (drug) research and development. The Company is dedicated to the identification, development and commercialization of novel drugs for the treatment of cancer and related diseases. EisnerAmper LLP, in Edison, New Jersey, expressed substantial doubt about Genta's ability to continue as a going concern following the 2010 financial results. The independent auditors noted that of the Company's recurring losses from operations, negative cash flows from operations and current maturities of convertible notes payable. Amper, Politziner & Mattia, LLP, in Edison, New Jersey, did not include a going concern explanatory paragraph in its audit report on the Company's financial statements for fiscal 2009. The Company reported a net loss of $167.3 million on $257,000 of sales for 2010, compared with a net loss of $86.3 million on $218,000 for 2009. The Company's balance sheet at June 30, 2011, showed $6.44 million in total assets, $19.10 million in total liabilities, and a $12.65 million total stockholders' deficit. At June 30, 2011, Genta had cash and cash equivalents totaling $5.2 million, compared with $12.8 million at Dec. 31, 2010. Net cash used in operating activities during the first six months of 2011 was $7.3 million, or approximately $1.2 million per month. Bankruptcy Warning Presently, with no further financing, the Company projects that it will run out of funds during the third quarter of 2011. The Company currently does not have any additional financing in place. If the Company is unable to raise additional funds, it could be required to reduce its spending plans, reduce its workforce, license one or more of its products or technologies that it would otherwise seek to commercialize, sell certain assets, or even declare bankruptcy. The Company said there can be no assurance that it can obtain financing, if at all, or raise such additional funds, on terms acceptable to it. GEO POINT: Posts $380,500 Net Loss in June 30 Quarter ----------------------------------------------------- Geo Point Technologies, Inc., filed a Form 10-Q, reporting a net loss of $380,582 on $80,479 of revenues for the three months ended June 30, 2011, compared with a net loss of $137,432 on $15,927 of revenues for the same period ended June 30, 2010. The Company's balance sheet at June 30, 2011, showed $6.3 million in total assets, $2.9 million in total liabilities, and stockholders' equity of $3.4 million. As reported in the TCR on July 19, 2011, Hansen, Barnett & Maxwell, P.C., in Salt Lake City, expressed substantial doubt about Geo Point Technologies' ability to continue as a going concern, following the Company's results for the fiscal year ended March 31, 2011. The independent auditors noted that the Company has incurred significant losses and negative cash flows from operating activities since inception, has negative working capital and an accumulated deficit, and is dependent on additional debt or equity financing in order to continue its operations. A copy of the Form 10-Q is available at http://is.gd/O5zJF2 Salt Lake City-based Geo Technologies, Inc., owns and operates an oil refinery in Karatau, Kazakhstan, that refines crude oil into diesel fuel, gasoline, and mazut, a heating oil. GEORGE MASON: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: George Mason Citrus, Inc. 509 Lake Mirror Drive Lake Placid, FL 33852 Bankruptcy Case No.: 11-34921 Chapter 11 Petition Date: September 6, 2011 Court: United States Bankruptcy Court Southern District of Florida (West Palm Beach) Judge: Erik P. Kimball Debtor's Counsel: Kenneth S. Rappaport, Esq. RAPPAPORT OSBORNE & RAPPAPORT PL 1300 N Federal Hwy #203 Boca Raton, FL 33432 Tel: (561) 368-2200 E-mail: rappaport@kennethrappaportlawoffice.com Scheduled Assets: $1,000,000 Scheduled Debts: $5,600,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flsb11-34921.pdf The petition was signed by George P. Mason, Jr., president. GIORDANO'S ENTERPRISES: Gino's Owner Plans to Bid for Assets ------------------------------------------------------------ Becky Yerak at WGNradio.com reports that the Chicago owner of the Gino's East, Ed Debevic's and Edwardo's restaurant chains is among the parties interested in making a bid for Giordano's. The report relates that the bidding process for Giordano's has started, and Jeff Himmel whose West Loop-based Bravo Restaurants Inc. already owns pizza makers Gino's East and Edwardo's Natural Pizza as well as diner-themed Ed Debevic's, is among those taking a look at Giordano's, sources familiar with the matter said. According to the report, the chain is expected to be sold for at least $40 million. Giordano's main creditor, Fifth Third Bank, is owed $45.5 million. The report notes other interested bidders include the Apostolou family, who owned Giordano's when it went into bankruptcy court. Family patriarch John Apostolou lost control of Giordano's in the bankruptcy after he fired his previous lawyer and struck up a relationship with Marshall Home, an Arizona man who made a claim that the bankruptcy trustee said was fraudulent. John's two sons own franchises in Chicago that aren't part of the bankruptcy. About Giordano's Enterprises Chicago, Illinois-based Giordano's Enterprises, Inc., was founded in 1974 in Chicago, Illinois, by two Argentinean immigrants, Efren and Joseph Boglio. In 1988, John and Eva Apostolou purchased control of Giordano's. Although this casual dining eatery offers a broad array of fine Italian cuisine, it is primarily know for its "Chicago's World Famous Stuffed Pizza". At present, Giordano's operates six company owned stores in Chicagoland, four joint venture stores, and thirty-five franchisee locations. In addition, Giordano's operates Americana Foods, Inc., located in Mount Prospect, Illinois, that serves as the commissary for the majority of food products purchased by the Illinois locations. An affiliated real estate holding company, Randolph Partners, LP, owns 12 restaurant buildings that are leased to four of the company-owned locations, two of the joint venture locations and six of the franchisee locations. The other 33 locations are leased from third party landlords; two for the Giordano's locations, two for the joint venture locations and 29 for the franchise locations. Giordano's is the lessee and subleases the restaurant facility for 22 of the 29 franchise third party leases. JBA Equipment Finance, Inc, another affiliated entity, leases restaurant equipment packages to eight franchisee locations. Giordano's Enterprises and 26 affiliates filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Lead Case No. 11-06098) on Feb. 16, 2011. Six additional affiliates filed for Chapter 11 protection on Feb. 17, 2011. Michael L. Gesas, Esq., David A. Golin, Esq., Miriam R. Stein, Esq., and Kevin H. Morse, at Arnstein & Lehr, LLP, in Chicago, serve as the Debtors' bankruptcy counsel. Giordano's Enterprises disclosed $59,387 in assets and $45,538,574 in liabilities as of the Chapter 11 filing. Certain of the Debtors owe Fifth Third Bank not than $13,560,662, pursuant to loans and financial accommodations, and $31,927,998 under a business loan as of the Petition Date. Fifth Third has agreed to provide DIP financing of up to $35,983,563 to the Debtors. Philip V. Martino has been appointed as Chapter 11 trustee in the Debtors' bankruptcy cases, at the behest of the U.S. Trustee. Mr. Martino filed a $3,000,000 bond. GRAHAM PACKAGING: Suspending Filing of Reports with SEC ------------------------------------------------------- Graham Packaging Holdings Company filed a Form 15 notifying of its suspension of its duty under Section 15(d) to file reports required by Section 13(a) of the Securities Exchange Act of 1934 with respect to its 8 1/4% Senior Notes due 2017, 8 1/4% Senior Notes due 2018, and 9 7/8% Senior Subordinated Notes due 2014. Pursuant to Rule 12h-3, the Company is suspending reporting because there are currently less than 300 holders of record of the notes. About Graham Packaging Headquartered in York, Pennsylvania, Graham Packaging Holdings Company, -- http://www.grahampackaging.com/-- the parent company of Graham Packaging Company, L.P., is engaged in the design, manufacture and sale of customized blow molded plastic containers for the branded food and beverage, household, automotive lubricants and personal care/specialty product categories. As of the end of June 2008, the company operated 83 manufacturing facilities throughout North America, Europe and South America. The Company's balance sheet at June 30, 2011, showed $2.94 billion in total assets, $3.41 billion in total liabilities, and a $470.55 million total partners' deficit. * * * In June 2011, Fitch Ratings revised the Rating Watch status on Graham Packaging Company, L.P.'s and its subsidiary, GPC Capital Corp.'s 'B' Issuer Default Rating and the long-term debt ratings to Negative from Positive. The rating action follows Graham's announcement that the company has signed a definitive merger agreement, and an amendment thereto, under which Graham would be acquired by Reynolds Group Holdings Limited in an all-cash transaction for $25.50 per share. The transaction is valued at approximately $4.5 billion including assumed indebtedness. The deal is expected to close in the second half of this year. Fitch notes Graham's credit agreement contains triggers that allow lenders to declare an event of default and elect to declare all borrowings due and payable in the event of a party acquiring beneficial ownership. The debt indentures also contain a change of control covenant that requires the company to repurchase all outstanding notes at 101% of their principal amount plus accrued and unpaid interest. GRAMERCY CAPITAL: Announces Settlement of $549.7MM Mezzanine Loans ------------------------------------------------------------------ In a regulatory filing Thursday, Gramercy Capital Corp. discloses that on Sept. 1, 2011, it entered into a collateral transfer and settlement agreement with respect to its $549.7 million senior and junior mezzanine loans with Goldman Sachs Mortgage Company, Citicorp North America, Inc., and KBS Debt Holdings, LLC ("KBS") (collectively, the "Mezzanine Lenders"). The agreement requires the Company to transfer beneficial ownership of substantially all of the entities and properties comprising the Company's Gramercy Realty division to an affiliate of KBS in exchange for a mutual release of claims among the Company and the Mezzanine Lenders, including Realty's obligation to repay the outstanding mezzanine loan balance as well as contractual and default interest. The Company's initial transfer of approximately 317 properties to KBS occurred on Sept. 1, 2011, and the Company expects additional transfers to KBS to occur over the next several months as and when certain third-party conditions are satisfied. The settlement agreement obligates KBS to acquire from the Company any and all remaining Gramercy Realty entities and properties on Dec. 15, 2011. KBS will acquire the transferred properties under and subject to all in-place mortgage debt and other liabilities. The Company will retain 58 properties encumbered by approximately $31.8 million in first lien mortgage debt held by a Company- affiliated CDO. The agreement also provides for the Company's continued management of the transferred collateral through Dec. 31, 2013, for a fixed fee of $10.0 million annually plus reimbursement of certain costs and an incentive fee equal to a specified percentage of the excess of the equity value of the transferred collateral over a baseline valuation amount. The minimum amount of the Company's incentive fee will equal $3.5 million. The management agreement may be terminated by either party upon ninety day written notice; however any Company notice of termination cannot be effective until Dec. 31, 2011, at the earliest. Under the terms of the management agreement, the Company does not forfeit its incentive fee rights unless the Company resigns as manager or is terminated as manager for cause. With the execution of the collateral transfer and settlement agreement, the Company expects that it will complete and file its annual report on form 10-K for the fiscal year ended Dec. 31, 2010. and its quarterly reports on form 10-Q for the first and second quarters of 2011 not later than Sept. 30, 2011. A copy of the Collateral Transfer and Settlement Agreement is available at http://is.gd/ErNA7U About Gramercy Capital Gramercy Capital Corp. (NYSE: GKK) - http://www.gkk.com/-- is a self-managed integrated commercial real estate finance and property management and investment company whose Gramercy Finance division focuses on the direct origination, acquisition and portfolio management of whole loans, subordinate interests in whole loans, mezzanine loans, preferred equity, commercial mortgage-backed securities and other real estate securities, and whose Gramercy Realty division targets commercial properties leased primarily to financial institutions and affiliated users throughout the United States. The Company is headquartered in New York City and has regional investment and portfolio management offices in Jenkintown, Pennsylvania, Charlotte, North Carolina, and St. Louis, Missouri. As reported in the TCR on April 6, 2011, the Company received a notice from the NYSE indicating that it is not in compliance with the NYSE listed company manual Section 802.01E due to a delay in the filing of the Company's annual report on Form 10-K for the fiscal year ended Dec. 31, 2010. The delay arises, as previously disclosed, as a result of the continuing uncertainty regarding whether and on what terms, if any, the Company will be able to extend, modify, restructure or refinance its $240.5 million mortgage loan with Goldman Sachs Mortgage Company ("GSMC"), Citicorp North America, Inc., and SL Green Realty Corp., and its $549.7 million senior and junior mezzanine loans with KBS Debt Holdings, LLC, GSMC, Citicorp and SL Green. GREAT ATLANTIC: Shareholder Claims Execs. Hushed Faulty Finances ---------------------------------------------------------------- Roxanne Palmer at Bankruptcy Law360 reports that a shareholder of The Great Atlantic & Pacific Tea Co. Inc. filed a putative class action Friday in New Jersey federal court, accusing the company's executives of failing to disclose A&P's precarious financial situation. Named plaintiff Ricky Dudley claims A&P officers disseminated false and misleading statements that deceived investors about the condition of A&P's business, artificially inflated the company's stock price and enabled A&P to sell more than $430 million in debt on more favorable terms, according to Law360. 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. GWINNETT PLACE: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Gwinnett Place Park LLC P.O. Box 1981 Duluth, GA 30096 Bankruptcy Case No.: 11-75868 Chapter 11 Petition Date: September 5, 2011 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Debtor's Counsel: Scott B. Riddle, Esq. Suite 1530 Tower Place 3340 Peachtree Road, NE Atlanta, GA 30326 Tel: (404) 815-0164 Fax: (404) 815-0165 E-mail: sbriddle@mindspring.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Sang Kap Han, manager. HD SUPPLY: Incurs $101 Million Second Quarter Net Loss ------------------------------------------------------ HD Supply, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $101 million on $2.15 billion of net sales for the three months ended July 31, 2011, compared with a net loss of $115 million on $1.96 billion of net sales for the three months ended Aug. 1, 2010. The Company also reported a net loss of $265 million on $4.04 billion of net sales for the six months ended July 31, 2011, compared with a net loss of $317 million on $3.76 billion of net sales for the six months ended Aug. 1, 2010. The Company's balance sheet at July 31, 2011, showed $7.14 billion in total assets, $7.29 billion in total liabilities, and a $153 million total stockholders' deficit. Joe DeAngelo, CEO of HD Supply, stated, "The second quarter results marked the company's fifth consecutive quarter of sales growth and each of our business sectors [Infrastructure & Energy, Specialty Construction and Maintenance, Repair & Improvement] reported year-over-year sales growth for the quarter. During the second quarter, sales initiatives, continued focus on margin expansion and cost control resulted in the highest quarterly operating income since the second quarter of fiscal 2008." A full-text copy of the Form 10-Q is available for free at: http://is.gd/hMCT5g About HD Supply HD Supply, Inc., headquartered in Atlanta, Georgia, is one of the largest North American wholesale distributors supporting residential and non-residential construction and to a lesser extent electrical consumption and repair and remodeling. HDS also provides maintenance, repair and operations services. Its businesses are organized around three segments: Infrastructure and Energy; Maintenance, Repair & Improvement; and, Specialty Construction. HDS operates through approximately 800 locations throughout the U.S. and Canada serving contractors, government entities, maintenance professionals, home builders and professional businesses. The Company reported a net loss of $619 million on $7.47 billion of revenue for the fiscal year ended Jan. 30, 2011, compared with a net loss of $514 million on $7.42 billion of net sales for the fiscal year ended Jan. 31, 2010. * * * HD Supply carries 'Caa2' probability of default rating and corporate family rating, with negative outlook, from Moody's Investors Service, and a 'B' corporate credit rating, with negative outlook, from Standard & Poor's Ratings Services. In April 2010, when Moody's downgraded the ratings to 'Caa2' from 'Caa1', it said, "The downgrade results from Moody's views that the construction industry, the main driver of HDS' revenues, will continue to be weak for the foreseeable future, pressuring the company's ability to generate meaningful levels of earnings and free cash flow relative to its debt." HD SUPPLY: Awarded $23 Million Damages in Andritz Litigation ------------------------------------------------------------ Appleton Papers Inc. recovered approximately $23 million in damages, after deductions for related fees and litigation expenses, from a favorable judgment in a contract dispute with Andritz BMB AG and Andritz, Inc. The recovery follows a Sept. 1, 2011, decision by the Wisconsin Supreme Court denying Andritz's petition to review a March 2011 decision by the Wisconsin Court of Appeals, District III, which upheld a 2009 Outagamie County, Wisconsin, Circuit Court ruling in favor of Appleton. The claims asserted in the litigation included breach of obligations under a February 2007 agreement to perform certain engineering services which also granted Appleton an option to purchase certain equipment and services relating to an off-machine paper coating line. Appleton will use the award to pay down debt on the Company's revolving line of credit. About Appleton Papers Appleton Papers Inc. is a 100%-owned subsidiary of Paperweight Development Corp. Appleton Papers Inc. -- http://www.appletonideas.com/-- headquartered in Appleton, Wisconsin, produces carbonless, thermal, security and performance packaging products. Appleton has manufacturing operations in Wisconsin, Ohio, Pennsylvania, and Massachusetts, employs approximately 2,200 people and is 100% employee-owned. The Company's balance sheet at July 3, 2010, showed $633.02 million in total assets, $782.05 million in total liabilities, $102.52 million in redeemable common stock, a $159.39 million in accumulated deficit, and a $92.16 million accumulated other comprehensive loss. Appleton Papers carries a 'B' corporate credit rating from Standard & Poor's. HEARUSA INC: Posts $1.8-Mil. Net Loss in Qtr. Ended July 2 ---------------------------------------------------------- HearUSA, Inc., filed its Form 10-Q, reporting a net loss of $1.8 million on $20.3 million of revenues for the three months ended July 2, 2011, compared with a net loss of $1.9 million on $21.4 million of revenues for the three months ended June 26, 2010. The Company reported a net loss of $48.7 million on $41.7 million of revenues for the six months ended July 2, 2011, compared with a net loss of $4.4 million on $41.0 million of revenues for the six months ended June 26, 2010. During the first quarter ended April 2, 2011, the Company recorded an estimated $51.9 million non-cash impairment charge to write down the goodwill associated with these reporting units. The Company's balance sheet at July 2, 2011, showed $28.7 million in total assets, $56.1 million in total liabilities, and a stockholders' deficit of $27.4 million. A copy of the Form 10-Q is available at http://is.gd/t6ZNpG About HearUSA Inc. HearUSA, Inc., which sells hearing aids in 10 states, filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 11-23341) on May 16, 2011, to sell the business for $80 million to William Demant Holdings A/S. The Debtor said that assets are $65.6 million against debt of $64.7 million as of March 31, 2010. HearUSA owes $31.3 million to Siemens Hearing Instruments Inc., the principal supplier and primary secured lender. Judge Erik P. Kimball presides over the case. Brian K. Gart, Esq., Paul Steven Singerman, Esq., and Debi Evans Galler, Esq., at Berger Singerman, P.A., represent the Debtor. The Debtor has tapped Bryan Cave LLP as special counsel; Sonenshine Partners LLC, investment banker; Development Specialist Inc., restructuring advisor ans Joseph J. Luzinski as chief restructuring officer; and AlixPartners LLC, as communications consultant. Trustee Services, Inc., serves as claims and notice agent. The Official Committee of Unsecured Creditors has been appointed in the case. Robert Paul Charbonneau, Esq., and Daniel L. Gold, Esq., at Ehrenstein Charbonneau Calderin, represent the Creditors Committee. An Official Committee of Equity Security Holders has also been appointed. Mark D. Bloom, Esq., at Greenberg Traurig P.A., in Miami, Fla., represents the Equity committee as counsel. As reported in the TCR on Aug. 31, 2011, the U.S. Bankruptcy Court for the Southern District of Florida approved on Aug. 17, 2011, the sale of substantially all of the assets of the Company to Audiology Distribution, LLC, a wholly owed subsidiary of Siemens Hearing Instruments, Inc., who submitted the highest and best bid for the assets in the July 29, 2011 Section 363 auction. Pursuant to the terms of the Asset Purchase Agreement, the purchaser has agreed to purchase the acquired assets for a purchase price estimated at approximately $109 million. The purchase price is comprised of $66.8 million in cash plus certain assumed liabilities (which includes repayment or assumption of the $10 million debtor-in-possession (DIP) financing provided by the stalking horse bidder, William Demant Holdings A/S), plus the payment of cure costs for assumed contracts, and the assumption of various liabilities of the company. HIGHER HOPE: Case Summary & 3 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Higher Hope Christian Ministries, Inc. 1450 Ralph D. Abernathy Blvd. Atlanta, GA 30310 Bankruptcy Case No.: 11-75881 Chapter 11 Petition Date: September 5, 2011 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Debtor's Counsel: Gregory D. Ellis, Esq. LAMBERTH, CIFELLI, STOKES, ELLIS & NASON, P.A. 3343 Peachtree Road, NE, Suite 550 Atlanta, GA 30326-1022 Tel: (404) 262-7373 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/ganb11-75881.pdf The petition was signed by Stephen Redd, chief financial officer. HOMELAND SECURITY: Forbearance From YA Global Expires Tomorrow -------------------------------------------------------------- Homeland Security Capital Corporation, on Sept. 7, 2011, entered into the First Amendment to the Forbearance Agreement entered into by and among YA Global Investments, L.P., as lender, the Company, Homeland Security Advisory Services, Inc., Celerity Systems, Inc. and Nexus Technologies Group, Inc., pursuant to which the Lender agreed to extend the Forbearance Period by amending the definition of "Termination Date" to Sept. 14, 2011. As amended, the Forbearance Period now ends on the earlier of: (i) Sept. 14, 2011; and (ii) the occurrence of a "Termination Event," defined in the Agreement, as (i) the failure of the Company or any Guarantor to perform or comply with any term or condition of the Agreement; (b) the determination by the Lender that any warranty or representation made by the Company or any Guarantor in connection with the Agreement was false or misleading; (c) the occurrence of a materially adverse change in or to the collateral granted to the Lender under the Financing Documents or pursuant to the Agreement, as determined by the Lender in its sole and exclusive discretion; and (d) the occurrence of any default or Event of Default under the Financing Documents. A full-text copy of the First Amendment to Forbearance Agreement is available for free at http://is.gd/ksp2K1 About Homeland Security Homeland Security Capital Corporation is an international provider of specialized technology-based radiological, nuclear, environmental disaster relief and electronic security solutions to government and commercial customers. At December 31, 2009, the Company had total assets of $35,815,519 against total liabilities of $38,018,448 and Warrants Payable -- Series H Preferred Stock of $169,768. Stockholders' deficit was $2,372,697 at December 31, 2009. In March 2008, the Company entered into a stock purchase agreement with YA Global Investments, L.P. pursuant to which the Company sold to YA 10,000 shares of its Series H Convertible Preferred Stock. The Series H Stock is convertible into shares of Common Stock at an initial ratio of 33,333 shares of Common Stock for each share of Series H Stock, subject to adjustments -- including the Company's wholly owned subsidiary, Safety & Ecology Holdings Corporation, achieving certain earnings milestones, as defined, for the calendar years ending December 31, 2009 and 2008. Safety operates its business on a fiscal year ending June 30. Safety achieved the first milestone for the calendar year ending December 31, 2008. However, the second financial milestone for the calendar year ended December 31, 2009, has not been satisfied, resulting in a potential adjustment to the conversion ratio yielding approximately 56,300 shares of Common Stock for each share of Series H Stock, or approximately a potential additional 230,000,000 shares of the Company's Common Stock in the aggregate. Management is discussing with YA the possibility of a waiver or amendment of any adjustment to the Series H Stock conversion ratio, however there can be no assurances YA will waive or amend the adjustment, if any, to the Series H Stock conversion ratio. YA has not exercised its conversion rights as of February 22, 2010. In June 2009 the Company entered into an agreement YA extending the due date on its senior notes payable, and accrued interest, to YA from March 14, 2010, until October 1, 2010, for $2,500,000 and April 1, 2011, for $10,560,000. In exchange, the Company agreed to an increase in the interest rate, from 13% to 15%, on the senior notes payable and certain other debt due to YA, effective January 1, 2010, if the Company failed to secure a certain contract by March 2010. In December 2009, the Company was informed that it had been eliminated from the award process for this contract. Accordingly, the Company will begin recording interest expense at the increased rate effective Jan. 1, 2010. As reported by the TCR on Aug. 10, 2011, Homeland Security entered into a Forbearance Agreement by and among YA Global Investments, L.P., as lender, Homeland Security Advisory Services, Inc., Celerity Systems, Inc., and Nexus Technology Group, Inc., pursuant to which the Lender agreed to forbear from exercising its rights and remedies under the Financing Documents and applicable law with respect to one or more Events of Default that have occurred and are continuing as a consequence of the Company having failed to pay, when due at maturity, all outstanding principal and accrued and unpaid interest under the Company's outstanding debt with the Lender. HOVNANIAN ENTERPRISES: Moody's Cuts Corp. Family Rating to 'Caa2' ----------------------------------------------------------------- Moody's Investors Service downgraded the corporate family and probability of default ratings of Hovnanian Enterprises, Inc. to Caa2 from Caa1. In a related action, Moody's lowered the rating on Hovnanian's first lien senior secured notes to B2 from B1 and on its senior unsecured notes to Caa3 from Caa2. The rating on Hovnanian's preferred stock was affirmed at Ca, and the speculative grade liquidity assessment remained SGL-3. The outlook remains negative. RATINGS RATIONALE The downgrade reflects Hovnanian's continued operating losses, weak gross margins, very high homebuilding debt leverage, and Moody's expectation that the weakness in year-over-year revenues, deliveries, and net new contracts experienced by the company will continue for the next one to two years. In addition, the downgrades acknowledge that Hovnanian's cash balance is weakening and cash flow generation is negative as it pursues new land opportunities, which represented about $300 million of investment over the first nine months of fiscal 2011. These rating actions were taken: Corporate family rating downgraded to Caa2 from Caa1; Probability of default rating downgraded to Caa2 from Caa1; First lien senior secured notes downgraded to B2 (LGD2, 24%) from B1 (LGD2, 24%); Senior unsecured notes downgraded to Caa3 (LGD5, 78%) from Caa2 (LGD5, 78%); Preferred stock rating affirmed at Ca (LGD6, 98%); Speculative grade liquidity assessment affirmed at SGL-3; All of K. Hovnanian Enterprises' debt is guaranteed by its parent company, Hovnanian Enterprises, Inc. and its restricted operating subsidiaries. The Caa2 corporate family rating reflects Hovnanian's elevated debt leverage weak gross margins, continued operating losses, negative cash flow generation, and Moody's expectation that the conditions in the homebuilding industry over the next one to two years will provide limited opportunities for improvement in the company's operating and financial metrics. In addition, the ratings consider Hovnanian's negative net worth position, which Moody's anticipates will be further weakened by continuing operating losses and impairment charges. As a result, adjusted debt leverage, currently standing at 129%, is likely to increase further. At the same time, the ratings are supported by the company's satisfactory, albeit weakening, unrestricted current cash position of about $273 million at July 31, 2011, the lack of financial maintenance covenants, and the absence of significant debt maturities until 2015. The negative rating outlook reflects the risk that the likely benefits of the company's current operating strategy of investing in distressed lots and new community openings may transpire after its weakening cash position, lack of a revolver, and bloated capital structure place it in an untenable financial position. The ratings could be lowered further if the company were to materially deplete its cash reserves either through sharper-than- expected operating losses or through a substantial investment or other transaction. The outlook could stabilize if the company were to generate sizable amounts of operating cash flow, turn profitable on an operating basis, or receive a significant infusion of equity capital. The principal methodology used in rating Hovnanian was the Global Homebuilding Industry Methodology published in March 2009. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Established in 1959 and headquartered in Red Bank, New Jersey, Hovnanian Enterprises, Inc. designs, constructs and markets single-family detached homes and attached condominium apartments and townhouses. Revenue and consolidated net loss for the last twelve months ending April 2011 were approximately $1.2 billion and $0.3 million, respectively. HOVNANIAN ENTERPRISES: Incurs $50.9MM Net Loss in July 31 Quarter ----------------------------------------------------------------- Hovnanian Enterprises, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q reporting a net loss of $50.93 million on $285.61 million of total revenues for the three months ended July 31, 2011, compared with a net loss of $72.85 million on $380.60 million of total revenues for the same period a year ago. The Company also reported a net loss of $187.74 million on $793.28 million of total revenues for the nine months ended July 31, 2011, compared with net income of $134.70 million on $1.01 billion of total revenues for the same period during the prior year. The Company's balance sheet at July 31, 2011, showed $1.69 billion in total assets, $2.09 billion in total liabilities and a $399.35 million total deficit. A full-text copy of the Form 10-Q is available for free at: http://is.gd/AJmwau About Hovnanian Enterprises Red Bank, New Jersey-based Hovnanian Enterprises, Inc. (NYSE: HOV) -- http://www.khov.com/-- founded in 1959 by Kevork S. Hovnanian, is one of the nation's largest homebuilders with operations in Arizona, California, Delaware, Florida, Georgia, Illinois, Kentucky, Maryland, Minnesota, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and West Virginia. The Company's homes are marketed and sold under the trade names K. Hovnanian Homes, Matzel & Mumford, Brighton Homes, Parkwood Builders, Town & Country Homes, Oster Homes and CraftBuilt Homes. As the developer of K. Hovnanian's Four Seasons communities, the Company is also one of the nation's largest builders of active adult homes. * * * As reported by the TCR on April 25, 2011, Fitch Ratings has affirmed Hovnanian Enterprises, Inc.'s Issuer Default Rating (IDR) at 'CCC'. The rating for HOV is influenced by the Company's execution of its business model, land policies and geographic, price point and product line diversity. The rating also reflects the company's liquidity position, substantial debt and high leverage. In the July 5, 2011, edition of the TCR, Standard & Poor's Ratings Services lowered its corporate credit ratings on Hovnanian Enterprises Inc. and its K. Hovnanian Enterprises Inc. subsidiary to 'CCC' from 'CCC+'. "The downgrade was driven by Hovnanian's declining cash position as the company invests in land and new communities as a way to bolster gross profits," said credit analyst George Skoufis. "We also believe the housing recovery will be weaker and more protracted than we previously expected. As a result, the company will be challenged to ultimately address its highly leveraged balance sheet if it does not begin to improve profitability." HUDSON HEALTHCARE: Proposes Settlement With Creditors ----------------------------------------------------- Jarrett Renshaw at Statehouse Bureau, citing court documents, reports that Hoboken and its struggling hospital have asked a federal bankruptcy judge to approve a settlement that would give a long list of creditors -- including union pension funds, insurance carriers and software developers -- just a fraction of the millions they are owed, according to court filings. Under the proposed settlement before U.S. Bankruptcy Judge Donald Steckroth, creditors who are owed about $34.6 million from Hoboken University Medical Center would only see about $5 million from the proceeds of the pending hospital sale, or about 15 cents on the dollar. The report says, meanwhile, bondholders who financed the city's takeover of the hospital in 2007 would be repaid in full, receiving $52 million in outstanding loan payments, along with $11 million in interest that would be picked up by state taxpayers. "The whole fact that you asked nurses to take a 10 percent cut in their salaries to help save the hospital, and they agreed, and now you turn around and tell them to take 15 cents on the dollar while the bondholders get 120 percent, that's a slap in the face of the working class," the report quotes Beth Mason, a Hoboken councilwoman who opposes the sale and voted against the settlement that eventually passed the council last month, as saying. The report relates that the settlement proposal is just one of a flurry of filings since the hospital's operator, Hudson Healthcare, sought Chapter 11 bankruptcy protection last month. The creditors have asked the judge to reject the settlement and block the sale of the hospital, arguing it unfairly compensates them for their losses. They want to share in the full proceeds, not what is left over after bondholders get paid. The hospital authority, which issued the bonds and owns the hospital, contracted with Hudson Healthcare to run the facility, as required by a 2006 state law that allowed the city to buy the hospital. The report notes a hearing is scheduled for Sept. 21, 2011. If the settlement is not approved, the sale of the hospital to private investors who own the for-profit Bayonne Medical Center will fall apart and the hospital will close sometime in October, Hudson Healthcare warned in court filings. Doug Petkus, a spokesman for the hospital authority, said the bankruptcy would ensure a "fair and orderly" processing of the outstanding debts incurred by hospital. Mr. Petkus said the longer the sale is delayed, the less money will go to creditors and more to lawyers. Since July 2010 the authority has paid the law firm Lowenstein Sandler at least $1 million to handle the sale, records show. Former state attorney general Zulima Farber works for the firm and handled some of the work. About Hudson Healthcare Hudson Healthcare Inc. is the nonprofit operator of Hoboken University Medical Center in Hoboken, New Jersey. Hudson Healthcare filed for Chapter 11 protection (Bankr. D. N.J. Case No. 11-33014) in Newark on Aug. 1, 2011, estimating assets and debt of less than $50 million. Affiliate Hoboken Municipal Hospital Authority also sought Chapter 11 protection. Judge Donald H. Steckroth presides over the cases. Attorneys at Trenk, Dipasquale, Webster, et al., serve as counsel to the Debtor. Epiq Bankruptcy Solutions, LLC is the noticing and claims agent. In August 2011, the New Jersey Health Planning Board voted to recommend to the Commissioner of Health to approve the sale of Hoboken University Medical Center to HUMC Holdco, a private group that also owns Bayonne Medical Center. Holdco has pledged to maintain it as a hospital for at least seven years. The proposed transaction totals $91.7 million, including a $51.6 million cash payment to extinguish Hobokens' bond guarantee. The new owners have pledged to put $20 million in capital improvements in the hospital. ICAD INC: Gets Nasdaq Letter on Non-Compliance With Minimum Bid --------------------------------------------------------------- iCAD, Inc. received a letter from The Nasdaq Stock Market stating that for the previous 30 consecutive business days, the bid price of the Company's common stock closed below the minimum $1.00 per share requirement for continued inclusion on The Nasdaq Global Market pursuant to Nasdaq Marketplace Rule 5450(a)(1). The Nasdaq letter has no immediate effect on the listing of the Company's common stock. In accordance with Marketplace Rule 5810(c)(3)(A), iCAD will be provided with a grace period of 180 calendar days, or until March 7, 2012, to regain compliance with the Minimum Bid Price Rule. If at any time before March 7, 2012, the bid price of the Company's stock closes at $1.00 per share or more for a minimum of 10 consecutive business days, Nasdaq will notify the Company that it has achieved compliance with the Minimum Bid Price Rule. If the Company does not regain compliance with the Minimum Bid Price Rule by March 7, 2012, Nasdaq will notify the Company that its common stock will be delisted from The Nasdaq Global Market. In the event the Company receives notice that its common stock is being delisted from The Nasdaq Global Market, Nasdaq rules permit the Company to appeal any delisting determination by the Nasdaq staff to a Nasdaq Hearings Panel. Alternatively, Nasdaq may permit the Company to transfer its common stock to The Nasdaq Capital Market if it satisfies the requirements for initial inclusion set forth in Marketplace Rule 5505, except for the bid price requirement. If its application for transfer is approved, the Company would have an additional 180 calendar days to comply with the Minimum Bid Price Rule in order to remain on The Nasdaq Capital Market. About iCAD iCAD, Inc. is an industry-leading provider of advanced image analysis and workflow solutions that enable healthcare professionals to better serve patients by identifying pathologies and pinpointing the most prevalent cancers earlier. iCAD offers a comprehensive range of high-performance, upgradeable Computer- Aided Detection (CAD) systems and workflow solutions for mammography, Magnetic Resonance Imaging (MRI) and Computed Tomography (CT). iCAD recently acquired Xoft, Inc., developer of the Axxent(R) eBx(TM) electronic brachytherapy system (eBx). IL FORNAIO: S&P Gives 'B+' Corp. Credit Rating; Outlook Stable -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' corporate credit rating to Corte Madera, Calif.-based Il Fornaio (America) Corp. The outlook is stable. "At the same time, we assigned our 'BB-' issue-level rating to the company's $145 million senior secured bank credit facilities, which consist of a $15 million five-year revolver and a $130 million six-year term loan. The recovery rating is '2', indicating our expectation of substantial (70% to 90%) recovery for lenders in the event of a payment default," S&P related. "Private-equity firm Roark Capital used the proceeds from the term loan, along with proceeds from new subordinated notes (which we do not rate) and equity contribution, to fund the purchase of a majority interest in Il Fornaio," S&P said. "The ratings reflect our expectation that Il Fornaio will use excess cash flows for debt reduction, leading to enhanced credit protection measures over the intermediate term," said Standard & Poor's credit analyst Andy Sookram. "We also think that EBITDA margins will improve modestly in fiscal 2011 as cost discipline and menu initiatives help mitigate commodity cost inflation." INDIANA EQUITY: Has Access to Fannie Cash Collateral Until Oct. 31 ------------------------------------------------------------------ In a fourth interim order dated Aug. 25, 2011, the U.S. Bankruptcy Court for the Northern District of Illinois granted Indiana Equity Investments, LLC, authorization to use the rents from its properties which constitute cash collateral of Federal National Mortgage Association, until Oct. 31, 2011, in accordance with a budget. The Debtor requested the use of rent to operate its properties and provide services to its tenants. The Debtor will deposit all Rent and all other income it receives into the DIP Account maintained by Midwestern Equities, LLC, at Chase Bank, N.A., and will pay all expenses using the DIP Account. The Debtor will account for all cash collateral and provide to Fannie Mae monthly accounting of all deposits to and disbursements from the DIP Account on the 10th day of each month for the prior month. The Debtor will also account for and deposit into the DIP Account all rents and other income received by the Debtor and held by Debtor, Joseph Junkovic, Thomas Junkovic, Frano Junkovic, Maria Junkovic, or any property management company or any management employee. The Debtor is not allowed to make any expenditures related to the line items identified in the budgets as "Ownership Payroll" or Health Insurance" only as those health insurance expenditures relate to Joseph Junkovic, Thomas Junkovic, and Maria Junkovic without further order of the Court. As additional adequate protection of Fannie Mae's interests in the cash collateral, Debtor will grant Fannie Mae valid and automatically perfected first priority replacement and security interests in the DIP Account and any and all assets of the Debtor. To the extent the adequate protection is insufficient to protect Fannie Mae's interest in the cash collateral, Fannie Mae is also granted all of the other benefits and protections allowable under 11 U.S.C. Section 507(b). The date of the final hearing has not been set. As of the Petition Date, Fannie Mae asserts that the Debtor owes it no less than $8,190,878, plus interest, fees and other charges. Prior to the entry of the order, Fannie had objected to the Debtor's use of its cash collateral, citing: A. The Debtor should not be permitted to bank excess cash collateral without the payment of adequate protection payments. B. The Debtor should not be allowed to use cash collateral to fund improper expenses. C. The Debtor cannot provide adequate protection because it is unable to maintain a segregate DIP Account. In its response to this objection, Debtor says it is unable at this time to open and maintain a bank account in its own corporate name since it has been involuntarily dissolved by the State of Indiana. About Indiana Equity Based in Alsip, Illinois, Indiana Equity Investments, LLC, aka Autumnwoods Apartments and Brendonwood Apartments, owns two commercial multi-family properties located in Fort Wayne, Indiana. It filed for Chapter 11 bankruptcy (Bankr. N.D. Ill. Case No. 11-19277) on May 5, 2011. Judge Eugene R. Wedoff presides over the case. David K. Welch, Esq., Arthur Simon, Esq., and Jeffrey Dan, Esq., at Crane Heyman Simon Welch & Clar, in Chicago, serve as the Debtor's bankruptcy counsel. In its petition, the Debtor estimated $10 million to $50 million in assets and $1 million to $10 million in debts. Indiana Equity's petition was signed by Joseph Junkovic, as the manager. Mr. Junkovic commenced his own Chapter 11 case (Bankr. N.D. Ill. Case No. 10-55888) in 2010. INFUSION BRANDS: Sells $1 Million Preferred Shares and Warrants --------------------------------------------------------------- Infusion Brands International, Inc., on Sept. 1, 2011, entered into an oral agreement with a certain accredited investor to sell the Investor, subject to the filing of an amendment to the Certificate of Designation of its Series G Convertible Stock 1,000,000 shares of its Preferred Stock and Series G Warrants to purchase an aggregate of 10,000,000 shares of the Company's common stock. The purchase price of the Private Placement Securities is $1,000,000, and the funds were received from the Investor on Sept. 1, 2011. However, a stock purchase agreement and other related transaction documents are in the process of being drafted with the Investor and, accordingly, have not been executed at this time. The Private Placement Securities will be issued to the Investor upon the execution of the Transaction Documents and upon the amending of the certificate of designation of the Preferred Stock. About Infusion Brands Infusion Brands International, Inc. is a global consumer products company. Its wholly owned operating subsidiary, Infusion Brands, Inc. specializes in building and marketing profitable brands through international direct-to-consumer channels of distribution. On Dec. 16, 2010, as part of its quasi-reorganization in order to change its business model from that of an acquisition strategy to a singular operating model as a consumer products company which builds and markets brands internationally through direct-to- consumers channels of distribution, OmniReliant Holdings, Inc. entered into an agreement and plan of merger with Infusion Brands International, Inc., a Nevada corporation and the Company's wholly-owned subsidiary. Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, the Company merged with and into Infusion Brands International, Inc., solely to effect a name change of the Company. The Company's balance sheet at June 30, 2011, showed $8.32 million in total assets, $8.11 million in total liabilities, $7.29 million in redeemable preferred stock, and a $7.08 million total deficit. As reported by the TCR on April 7, 2011, Meeks International LLC, in Tampa, Florida, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant recurring losses from operations and is dependent on outside sources of financing for continuation of its operations and management is restructuring and redirecting its operating initiatives that require the use its available capital resource. INSIGHT PHARMACEUTICALS: Moody's Gives 'B2' Corp. Family Rating --------------------------------------------------------------- Moody's Investors Service assigned first-time ratings for Insight Pharmaceuticals, LLC, including a B2 Corporate Family Rating and B2 Probability of Default Rating. Moody's also assigned Ba3 ratings to the company's $20 million senior secured first lien revolving credit facility expiring in August 2016 and $255 million senior secured first lien term loan due August 2016. The rating outlook is stable. Proceeds from the first lien term loan, an unrated $145 million second lien term loan and $65 million equity infusion were used to acquire Monistat(C), a nationally distributed vaginal anti-fungal ("VAF") medicine brand from Johnson & Johnson (J&J) and to refinance existing debt. The Monistat purchase agreement also required Insight to pay J&J approximately $77.8 million in deferred performance-based payments in 2012 and 2013, which will be funded in part by $40 million in restricted cash. The majority of the deferred performance-based payments in 2012 are expected to be paid with restricted cash. RATINGS RATIONALE Insight's B2 corporate family rating reflects its high leverage, small revenue base and limited brand diversification in highly competitive over-the-counter (OTC) categories against competitors that have significantly more resources and financial flexibility. Insight's outsourced manufacturing business model generates strong profitability and positive cash flow with low capital spending requirements. The rating also reflects the execution risk associated with integrating and stabilizing acquired brands that represent the majority of the company's revenue and profit base. Finally, the rating incorporates Moody's expectation that meaningful debt reduction will be limited despite positive cash flow generation as Insight will likely pursue additional acquisitions to supplement organic growth. Pro forma for the transaction (including Moody's adjustments and treatment of the J&J performance-based deferred payments as debt), Moody's estimates debt-to-EBITDA of approximately 5.6 times for the twelve months ending June 30, 2011. Moody's stable outlook reflects Moody's expectation that revenue will grow in the low single digits driven by a significant investment in marketing and promotions for the newly acquired brands. These investments could further delay any meaningful debt reduction over the next 12 to 18 months. "Insight's strong profitability, positive cash flow (excluding the effects of acquisitions) and presence in a variety of over-the- counter (OTC) pharmaceutical sub-categories support the company's B2 credit rating," says Moody's Senior Vice President Janice Hofferber. "The company faces significant execution risk involved with integrating many of the company's major brands, including two of its largest brands, that have been acquired only within the past two years," adds Ms. Hofferber. Ratings could be downgraded should Insight's operating performance deteriorate, or should the company make a sizable debt-financed acquisition or material share repurchases such that Moody's expects debt-to-EBITDA to be sustained above 6.0 times and EBITA- to-interest expense to be sustained below 1.75 times. Ratings could be upgraded if the company is successfully able to improve its scale and product diversification while sustaining credit metrics such that debt-to-EBITDA is below 4.5 times and EBITA-to-interest expense is over 3.0 times. Ratings assigned to Insight include the following: - Corporate Family rating of B2; - Probability of Default rating of B2; - $20 million senior secured first lien revolving credit facility expiring August 2016 at Ba3 (LGD 2, 28%); and - $255 million senior secured first lien term loan due August 2016 at Ba3 (LGD 2, 28%). The rating outlook is stable. The principal methodology used in rating Insight Pharmaceuticals, LLC was the Global Packaged Goods Industry Methodology, published July 2009. Other methodologies used include Loss Given Default for Speculative Grade Issuers in the US, Canada, and EMEA, published June 2009. Headquartered in Langhorne, Pennsylvania, Insight is a marketer of a broad portfolio of branded over-the counter ("OTC") healthcare products. Key brands include e.p.t.(C), Nix(C), Sucrets(C), Anacin(C), Dermarest(C) and Bonine(C). Proforma revenue for the twelve months ended June 30, 2011 is approximately $200 million. SPC Partners IV, L.P. and Teacher's Private Capital, the private equity affiliate of the Ontario Teachers' Pension Plan represent a majority of Insight's ownership. INT'L RARITIES: Federal Agents Raid Minneapolis Offices ------------------------------------------------------- Mark Reilly, managing editor at Minneapolis / St. Paul Business Journal, reports that federal agents searched the Minneapolis offices of International Rarities Corp., seeking information into securities sales by the coin company. According to the report, the Star Tribune, which has been reporting on the sometimes-sketchy world of coin-dealing for much of the year, reported that the raid involved a $10 million funding effort that was aimed to expand International Rarities, which filed for Chapter 11 bankruptcy protection last month. International Rarities Corp., 331 2nd Av. S., Minneapolis, filed for Chapter 11 bankruptcy protection in Minneapolis (Bankr. D. Minn. Case No. 11-45512) on Aug. 19, 2011, disclosing assets of $1,353,295 and liabilities of $3,025,921. Judge Robert J. Kressel presides over the case. Thomas G. Wallrich, Esq., at Hinshaw & Culbertson LLP, represents the Debtor. INTELLIGENT COMMUNICATION: Reports $2.4MM Net Income in 2nd Qtr. ---------------------------------------------------------------- Intelligent Communication Enterprise Corporation filed its quarterly report on Form 10-Q, reporting net income of $2.4 million on $0 revenue for the three months ended June 30, 2011, compared with a net loss of $908,673 on $0 revenue for the same period last year. The Company reported net income of $1.2 million on $0 revenue for the six months ended June 30, 2011, compared with a net loss of $3.8 million on $77,389 of revenue for the same period last year. The sale of the discontinued operations resulted in a gain of $4.4 million for the three and six months ended June 30, 2011. The Company's balance sheet at June 30, 2011, showed $2.7 million in total assets, $770,536 in total liabilities, all current, and stockholders' equity of $1.9 million. Peterson Sullivan LLP, in Seattle, Washington, expressed substantial doubt about Intelligent Communication's ability to continue as a going concern, following the Company's results for 2010. The independent auditors noted that the Company has incurred losses, and has negative working capital and an accumulated deficit at Dec. 31, 2010. A copy of the Form 10-Q is available at http://is.gd/gGxF81 Based in Singapore, Intelligent Communication Enterprise Corporation (OTC BB: ICMC) -- http://www.icecorpasia.com/-- offers a range of innovative enterprise and consumer solutions over the mobile phone. ICE Corp owns and operates the ICEsync platform, which currently hosts Modizo.com the celebrity video blog and the related applications for mobile devices. Intelligent Communication Enterprise is a Pennsylvania corporation, with offices in Singapore and Malaysia. INTELSAT SA: Sees $725MM-$800MM 2011 Total Capital Expenditures --------------------------------------------------------------- Intelsat S.A. announced changes to its annual capital expenditure guidance for the three fiscal years beginning Jan. 1, 2011, and ending Dec. 31, 2013, following an Intelsat news release announcing a customer agreement resulting in two new satellite programs. The Company expects its 2011 total capital expenditures to range from $725 million to $800 million. Expected annual capital expenditure ranges for fiscal years 2012 and 2013 are $875 million to $950 million, and $375 million to $450 million, respectively. However, whether particular satellite manufacturing and launch contract milestones are met late in one year or early in another can significantly affect the timing of capital expenditure payments. During the Guidance Period, the Company also expects to receive significant customer prepayments under its service contracts. The prepayments are currently expected to range from $325 million to $375 million in 2011, $150 million to $200 million in 2012, and $75 million to $125 million in 2013. The Company has seven satellites in development that are expected to be launched during the Guidance Period. In addition to these announced programs, the Company expects to procure one additional replacement satellite during this period. By the conclusion of the Guidance Period, the Company's total station-kept transponder count is expected to increase modestly from current levels. The Company's capital expenditures guidance includes capitalized interest, but excludes capital expenditures associated with the Intelsat New Dawn satellite that was launched by the Company's Intelsat New Dawn Company, Ltd., joint venture in April of this year. About Intelsat Intelsat S.A., formerly Intelsat, Ltd., provides fixed-satellite communications services worldwide through a global communications network of 54 satellites in orbit as of Dec. 31, 2009, and ground facilities related to the satellite operations and control, and teleport services. It had US$2.5 billion in revenue in 2009. Luxembourg-based Intelsat S.A. carries 'B' issuer credit ratings from Standard & Poor's. It has 'Caa1' corporate family and probability of default ratings from Moody's Investors Service. Washington D.C.-based Intelsat Corporation, formerly known as PanAmSat Corporation, is a fully integrated subsidiary of Intelsat S.A., its indirect parent. Intelsat Corp. had US$7.70 billion in assets against US$4.86 billion in debts as of Dec. 31, 2010. The Company reported a net loss of US$507.77 million on US$2.54 billion of revenue for the year ended Dec. 31, 2010, compared with a net loss of US$782.06 million on US$2.51 billion of revenue during the prior year. The Company's balance sheet at June 30, 2011, showed $17.59 billion in total assets, $18.28 billion in total liabilities, $1.90 million in noncontrolling interest, and a $698.94 million total Intelsat S.A. shareholders' deficit. J.C. EVANS: U.S. Trustee Appoints 7-Member Creditor's Panel ----------------------------------------------------------- Roberta A. DeAngelis, United States Trustee for Region 3, under 11 U.S.C. Sec. 1102(a) and (b), appointed seven unsecured creditors to serve on the Official Committee of Unsecured Creditors of Evergreen Solar, Inc. The Creditors Committee members are: 1. Wells Fargo Bank, N.A. ATTN: James Lewis, Esq., 45 Broadway, 12th Floor, New York, NY 10006, Tel: (212) 515-5258 Fax: (866) 524-4681 2. Computershare Trust Company, NA ATTN: John M. Wahl 350 Indiana Street Suite 650, Golden CO 80401 Tel: (303) 262-0707 Fax: (303) 262-0608 3. Trishield Capital Management ATTN: Jeff Buick 230 Park Avenue, 10th Floor New York, NY 10169 Tel: (646) 867-1875 Fax: (646) 304-3195 4. Palo Alto Investors, LLC ATTN: David Horning 470 University Avenue Palo Alto, CA 94301 Tel: (650) 325-0772 Fax: (650) 325-5028 5. Capital Ventures International c/o Susquehanna International Group LLP, ATTN: Todd Silverberg 401 City Avenue Suite 220, Bala Cynwyd PA 19004, Tel: (610) 747-1724 Fax: (610) 747-2081 6. Praxair, Inc. ATTN: Jeffrey Weiss, Esq. 39 Old Ridgebury Road Danbury, CT 06810, Tel: (203) 887-2104 7. Global Telecom & Technology ATTN: Chris McKee 8484 Westpark Drive, Suite 720 McLean, VA 22102 Tel: (703) 442-5508 Fax: (709) 442-5595 About Evergreen Solar Evergreen Solar, Inc. -- http://www.evergreensolar.com/-- develops, manufactures and markets String Ribbon solar power products using its proprietary, low-cost silicon wafer technology. The Company's patented wafer manufacturing technology uses significantly less polysilicon than conventional processes. Evergreen Solar's products provide reliable and environmentally clean electric power for residential and commercial applications globally. The Marlboro, Mass.-based Company filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 11-12590) on Aug. 15, 2011, before Judge Mary F. Walrath. The Company's balance sheet at April 2, 2011, showed $373,972,000 in assets, $455,506,000 in total liabilities, and a stockholders' deficit of $81,534,000. Ronald J. Silverman, Esq., and Scott K. Seamon, Esq., at Bingham McCutchen LLP, serve as general bankruptcy counsel to the Debtor. Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as co-counsel. Zolfo Cooper LLC is the financial advisor. Epiq Bankruptcy Solutions has been tapped as claims agent. In conjunction with the Chapter 11 filing, the Company entered into a restructuring support agreement with certain holders of more than 70% of the outstanding principal amount of the Company's 13% convertible senior secured notes. As part of the bankruptcy process the Company will undertake a marketing process and will permit all parties to bid on its assets, as a whole or in groups pursuant to 11 U.S.C. Sec. 363. An entity formed by the supporting noteholders, ES Purchaser, LLC, entered into an asset purchase agreement with the Company to serve as a "stalking-horse" and provide a "credit-bid" pursuant to the Bankruptcy Code for assets being sold. The supporting noteholders are represented by Michael S. Stainer, Esq., and Natalie E. Levine, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York. JCK HOTELS: Hearing on Case Dismissal Scheduled for Sept. 15 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of California will convene a hearing on Sept. 15, 2011, at 2:00 p.m., to consider the request to dismiss the Chapter 11 case of JCK Hotels, LLC. As reported in the Troubled Company Reporter on Aug. 12, 2011, secured creditor LBUBS 2005-C2 Mira Mesa Limited Partnership has moved for the dismissal of the Debtor's case. LBUBS said that pursuant to state law and the terms of the Debtor's limited liability company operating agreement, the manager lacked the authority to initiate the bankruptcy proceeding. Additionally, the petition was filed in bad faith and is therefore subject to dismissal, according to LBUBS. About JCK Hotels, LLC JCK Hotels, LLC, fka Mira Mesa Hotels, LLC, operates the Holiday Inn Express Mira Mesa Hotel and the Comfort Suites Mira Mesa Hotel in San Diego, California. The Hotels are operated under licensing and franchise agreements with Holiday Inn Express and Comfort Suites. JCK Hotels filed for Chapter 11 bankruptcy (Bankr. S.D. Calif. Case No. 11-09428) on June 3, 2011. Judge Louise DeCarl Adler presides over the case. William M. Rathbone, Esq., and Daniel C. Silva, Esq., at Gordon & Rees LLP, in San Diego, Calif., serve as bankruptcy counsel. While no formal appraisal has been done recently, the Debtor believes the fair market value of both Hotels exceeds $18 million. The petition was signed by Charles Jung, managing member. JIREH LEASING: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Jireh Leasing, Inc. 201 Gold Street, Suite 100 Garland, TX 75042 Bankruptcy Case No.: 11-45034 Chapter 11 Petition Date: September 2, 2011 Court: United States Bankruptcy Court Northern District of Texas (Ft. Worth) Judge: Russell F. Nelms Debtor's Counsel: Clarke Viron Rogers, Esq. Jeff P. Prostok, Esq. FORSHEY & PROSTOK LLP 777 Main Street, Suite 1290 Fort Worth, TX 76102 Tel: (817) 877-4224 Fax: (817) 877-4151 E-mail: crogers@forsheyprostok.com jpp@forsheyprostok.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Paul Christopher, president. JOSEPH BORGES: Ag New Mexico Has Interest in CWT Funds ------------------------------------------------------ In the lawsuit styled as, Ag New Mexico, FCS, ACA; Ag New Mexico, FCS, PCA; and Ag New Mexico, FCS, FLCA; v. Joe Bettencourt Borges; and Maria Rocha Borges, his wife, d/b/a J&M Dairy, Adv. Proc. No. 10-01170 (Bankr. D. N.M.), Bankruptcy Judge James S. Starzynski held that all three Plaintiffs have a security interest in the funds related to The Herd Retirement Program of Cooperatives Working Together, a nationwide program that removes dairy cows from the market in order to stabilize milk prices, and that Ag New Mexico FCS PCA holds a perfected security interest in the CWT funds. Ag New Mexico FCS ACA and Ag New Mexico FCS FLCA have not made a sufficient showing that their security interests in the CWT funds are perfected. The Court also ruled that the amount of the debt owed by the Defendants to the Plaintiffs is a material fact as to Count 1 of the Complaint, and that there is genuine dispute as to the amount of such debt. As there is a dispute as to material fact regarding the amount of the debt owed, the Plaintiffs' request that the Court find that they are entitled to the CWT funds is not well taken and will be denied. A copy of the Court's Sept. 6, 2011 Memorandum Opinion is available at http://is.gd/BgG6RVfrom Leagle.com. Joseph B. Borges and Maria R. Borges, both dba J&M Dairy in Artesia, N.M., filed a joint chapter 11 petition (Bankr. D. N.M. Case No. 10-12800) on June 1, 2010, and are represented by Wiley F. James, III, Esq., at James & Haugland, PC, in El Paso, Tex. The Debtors estimated their asset and debts at less than $10 million at the time of the filing. KEELEY AND GRABANSKI: 8th Cir. BAP Affirms Trustee Appointment -------------------------------------------------------------- The U.S. Bankruptcy Appellate Panel for the Eighth Circuit affirmed the Bankruptcy Court's order appointing a trustee in Keeley and Grabanski Land Partnership's involuntary Chapter 11 case. The BAP said the interests of creditors and the estate warrant the appointment of a trustee under 11 U.S.C. Sec. 1104(a)(2). The trustworthiness of KGLP's principals has been seriously questioned; KGLP's past performance casts serious doubt on its prospects of reorganization if left under the direction of Thomas Grabanski; and the evidence suggests that the business community and creditors have lost all confidence in Thomas Grabanski's ability to manage KGLP's affairs. The appellate case is Keeley and Grabanski Land Partnership, Debtor-Appellant, v. John Keeley; Dawn Keeley; Choice Financial Group, Petitioning Creditors-Appellees, No. 11-6020 (8th Cir. BAP). A copy of the BAP's Sept. 6, 2011 decision is available at http://is.gd/RMrBZHfrom Leagle.com. About Keeley and Grabanski Thomas Grabanski, a North Dakota farmer, is mired in three separate Chapter 11 bankruptcy cases. Mr. Grabanski and his wife Mari filed a personal Chapter 11 bankruptcy petition (Bankr. D. N.D. Case No. 10-30902) on July 22, 2010. DeWayne Johnston, Esq., at Johnston Law Office, represents the Grabanskis in their Chapter 11 case. The Grabanskis estimated assets between $1 million and $10 million, and debts between $10 million and $50 million. On July 23, 2010, Mr. Grabanski signed a Chapter 11 petition for Grabanski Grain LLC (Bankr. D. N.D. Case No. 10-30924). DeWayne Johnston, Esq., also represents Grabanski Grain. The Debtor is estimated to have assets and debts of $1,000,001 to $10,000,000. Former owners in December 2010 forced the partnership Keeley & Grabanski Land Partnership in Texas into Chapter 11. John and Dawn Keely, the former owners, filed an involuntary Chapter 11 bankruptcy petition against the partnership (Bankr. D. N.D. Case No. 10-31482) on Dec. 6, 2010. Kenneth Corey-Edstrom, Esq., at Larkin Hoffman Daly & Lindgren Ltd., represents the petitioner. Keeley & Grabanski Land Partnership in Texas -- since 2009 doing business as Grabanski Land Partnership -- was formed in 2007 for Texas farming operations between farmers Thomas Grabanski and John Keeley of Grafton, N.D., and their wives. K&G Land, along with a separate farming partnership, operated more than 10,000 acres of corn and sunflowers from 2007 to 2009 in two locations in Texas near the towns of Blossom and DeKalb. In separate, related lawsuits, the Grabanskis face several "adversarial" lawsuits, filed by certain creditors. The creditors who filed suits include Crops Production Services Corp., AgCountry Farm Credit Services, and PHI Financial. LAS VEGAS MONORAIL: Bondholders Have Tentative Deal --------------------------------------------------- Tim O'Reiley at the Las Vegas Review-Journal reports that a tentative resolution of a dispute between bondholders could clear many of the remaining hurdles to the Las Vegas Monorail exiting bankruptcy. According to the report, the parties in the case will request U.S. Bankruptcy Court clearance to ask a Minnesota state court to approve a deal under which second-tier bondholders will pay $400,000 from a reserve fund to first-tier bondholders, ending a complex legal fight that has tied up the monorail case for months. All other claims the two had made on each other's money will be dropped. The report notes the first-tier bonds get that designation because they take precedence for repayment. The monorail is worth far less than the $500.2 million owed on the first-tier bonds, so the $158.7 million second-tier will be completely wiped out. However, the first-tier bonds were protected by insurance from Ambac Assurance Corp. to cover payments if the monorail defaulted. When Ambac itself wound up in receivership it triggered litigation in Minnesota, home of second-tier bond trustee U.S. Bank, over what was left. Mr. O'Reiley says a third set of uninsured bonds totaling $49.5 million is also worthless. The money from all the bonds was used 11 years ago to buy the original monorail, which ran between MGM Grand and Bally's, and then extend it north to the Sahara. He adds that, if U.S. Bankruptcy Court Judge Bruce Markell okays the bond deal, monorail attorney Gerald Gordon wrote in court papers filed Sept. 2, "the hearing to approve the (monorail reorganization) plan will be simplified, taking less time from the court and counsel." The report says that reorganization hearing is also slated for Friday. If the plan is approved, it would largely end the Chapter 11 case that began in January 2010, when bondholders took over revenues from ticket sales and dispensed what they thought was needed to keep operations going. The report relates that the monorail and the first-tier bond holders have not yet settled all their differences, said Susan Freeman, an attorney for Wells Fargo Bank, which serves as the trustee for the bondholders. She declined to specify what points remain, except to say they are in negotiation. About Las Vegas Monorail Las Vegas, Nevada-based Las Vegas Monorail Company, organized by the State of Nevada in 2000 as a nonprofit corporation, owns and manages the Las Vegas Monorail. The Monorail is a seven-stop, elevated train system that travels along a 3.9-mile route near the Las Vegas Strip. LVMC has contracted with Bombardier Transit Corporation to operate the Monorail. Though it benefits from its tax-exempt status due to being a nonprofit entity, LVMC claims to be the first privately-owned public transportation system in the nation to be funded solely by fares and advertising. LVMC says it receives no governmental financial support or subsidies. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 10-10464) on Jan. 13, 2010. Gerald M. Gordon, Esq., at Gordon Silver, assists the Company in its restructuring effort. Alvarez & Marsal North America, LLC, is the Debtor's financial advisor. Stradling Yocca Carlson & Rauth is the Debtor's special bond counsel. Jones Vargas is the Debtor's special corporate counsel. The Company disclosed $395,959,764 in assets and $769,515,450 in liabilities as of the Petition Date. In May 2010, Ambac Assurance Corp. lost its bid to stay the bankruptcy case while a district court considers whether the bankruptcy court wrongly rejected Ambac's argument that Monorail was a municipality and thus ineligible to be a Chapter 11 debtor. LEE ENTERPRISES: Pushes Back Due Date of $864 Million Debt ---------------------------------------------------------- Sarah Fenske in a blog at River Front Times reports that Lee Enterprises, parent company of the St. Louis Post-Dispatch and other newspapers, announced that the company had gotten an agreement to push back the due date on some $864 million in debt. According to the report, the deal is dependent on the Company refinancing another $175 million in debt -- and the Company indicated in an announcement that a Chapter 11 bankruptcy reorganization is not out of the question. But considering that Lee's massive debt had been due in April 2012, the news was pretty good, says Ms. Fenske. About Lee Enterprises Lee Enterprises, Inc., headquartered in Davenport, Iowa, publishes the St. Louis Post Dispatch and the Arizona Daily Star along with more than 40 other daily newspapers and about 300 weeklies. Revenue for the 12 months ended December 2010 was approximately $780 million. The Company's balance sheet at June 26, 2011, showed $1.18 billion in total assets, $1.26 billion in total liabilities, and a $75.71 million total deficit. * * * As reported by the Troubled Company Reporter on May 16, 2011, Standard & Poor's lowered its preliminary corporate credit rating on Lee to 'B-' from 'B'. The rating outlook is negative. "The downgrade is based on the company's significant near-term maturities and our belief that alternative refinancing options will likely be costly," said Standard & Poor's credit analyst Hal F. Diamond. "We withdrew our 'B' preliminary issue rating on Lee Enterprises' proposed $680 million first-lien senior secured notes due 2017 with a preliminary recovery rating of '3' (also withdrawn), indicating our expectation of meaningful (50%-70%) recovery for lenders in the event of a payment default," S&P related. As reported by the TCR on May 6, 2011, Moody's withdrew its ratings on Lee after the publisher cancelled a planned refinancing that would have included the upsizing of its first lien senior secured notes due 2017 to $680 million from $675 million, and shifting of the coupon on the $375 million senior secured notes due 2018 to a cash/PIK combination from all cash. Moody's had previously assigned Caa1 Corporate Family Rating on Lee. LEHR CONSTRUCTION: Trustee Can Retain Davis Graber as Accountants ------------------------------------------------------------------ The Hon. Sean H. Lane of the U.S. Bankruptcy Court for the Southern District of New York authorized Jonathan L. Flaxer, the Chapter 11 trustee in the case of Lehr Construction Corp., to retain Davis, Graber, Plotkzer & Ward LLP as accountants. As reported in the Troubled Company Reporter on July 22, 2011, as the trustee's accountant, DGPW will, among other things: a) prepare all necessary tax returns and any related auditing work and all ancillary services that may be required by the trustee; b) attend meetings and confer with representatives of the trustee and his counsel; and c) perform other services that the trustee may deem necessary. The trustee proposes to compensate DGPW at its customary hourly rates for services rendered. To the best of the trustee's knowledge, DGPW is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Lehr Construction New York-based Lehr Construction Corp. was founded in 1979. It specializes in interior construction and serves clients mainly throughout the New York metropolitan area. It serves as construction manager and general contractor for its clients Lehr filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 11-10723) on Feb. 21, 2011. James A. Beldner, Esq., at Cooley LLP, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. Jonathan Flaxer is the Chapter 11 Trustee for Lehr Construction. He is represented by Douglas L. Furth, Esq., at Goldenbock Eiseman Assor Bell & Peskoe LLP, in New York. Wolf Haldenstein Adler Freeman & Hertz serves as conflicts counsel to the trustee. Tracy Hope Davis, the U.S. Trustee for Region 2, appointed five creditors to serve on the Official Committee of Unsecured Creditors in the Debtor's case. LEHR CONSTRUCTION: Marotta Gund OK'd as Trustee's Fin'l Advisor --------------------------------------------------------------- The Hon. Sean H. Lane of the U.S. Bankruptcy Court for the Southern District of New York authorized Jonathan L. Flaxer, the Chapter 11 trustee in the case of Lehr Construction Corp., to retain Marotta Gund Budd & Dzera, LLC, as financial advisor. As reported in the Troubled Company Reporter on July 22, 2011, MGBD is expected to, among other things: a) assist the trustee in completing the projects, including interacting with customers, subcontractors, insurance agents, the Debtor's personnel and other parties, and analyzing the financial viability of the various projects; b) prepare a liquidation and best interests analysis in connection with trustee's preparation of a chapter 11 plan and disclosure statement for the Debtor; and c) assist the trustee with any budgets in connection with financing or other matters. MGBD's fee structure generally consists of these hourly rates: Senior Managing Directors $650 Professional Staff $200 - $550 Paraprofessionals $150 The trustee notes that MGBD is providing a 10% discount to the estate for the services rendered. However, as part of its final fee application, and solely with the prior consent of the trustee, MGBD can seek a "success fee" which such "success fee" will not exceed the discount provided by MGBD due to the reduction of MGBD's professional fees. To the best of the trustee's knowledge, MGBD is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Lehr Construction New York-based Lehr Construction Corp. was founded in 1979. It specializes in interior construction and serves clients mainly throughout the New York metropolitan area. It serves as construction manager and general contractor for its clients Lehr filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 11-10723) on Feb. 21, 2011. James A. Beldner, Esq., at Cooley LLP, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. Jonathan Flaxer is the Chapter 11 Trustee for Lehr Construction. He is represented by Douglas L. Furth, Esq., at Goldenbock Eiseman Assor Bell & Peskoe LLP, in New York. Wolf Haldenstein Adler Freeman & Hertz serves as conflicts counsel to the trustee. Tracy Hope Davis, the U.S. Trustee for Region 2, appointed five creditors to serve on the Official Committee of Unsecured Creditors in the Debtor's case. LESARRA ATTACHED: Case Conversion Hearing Rescheduled for Sept. 28 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Nevada has rescheduled the hearing to Sept. 28, 2011 at 10:00 a.m., to consider the motion to convert the Chapter 11 case of Lessara Attached Homes, L.P., to one under Chapter 7 of the Bankruptcy Code. As reported in the Troubled Company Reporter on July 22, 2011, the Debtor cited that it has no unencumbered assets left and there is no chance for a successful reorganization. Reno, Nevada-based Lesarra Attached Homes, L.P., filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 10-50808) on March 12, 2010. Stephen R. Harris, Esq., at Harris-Petroni, Ltd., in Reno, Nevada, represents the Debtor as counsel. The Company estimated its assets and liabilities at $10 million to $50 million. LEXINGTON HOLDINGS: Case Summary & 13 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Lexington Holdings One, LLC 550 West Brown Street, Unit #2W Birmingham, MI 48009 Bankruptcy Case No.: 11-52526 Chapter 11 Petition Date: September 6, 2011 Court: United States Bankruptcy Court Eastern District of Kentucky (Lexington) Debtor's Counsel: John E Davis, Esq. DAVIS AND COFFMAN, PLLC 2343 Alexandria Dr Suite 140 Lexington, KY 40504 Tel: (859) 219-3472 Fax: (859) 219-9432 E-mail: jay@davis-coffman.com Estimated Assets: $0 to $50,000 Estimated Debts: $10,000,001 to $50,000,000 A list of the Company's 13 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/kyeb11-52526.pdf The petition was signed by Kale K. Roscoe, managing member. LIONCREST TOWERS: Hearing on Wells Fargo Cash Use Continued Today ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois has continued until Sept. 13, 2011, at 10:30 a.m., the hearing to consider Lioncrest Towers LLC's request to use the cash collateral of Wells Fargo Bank to fund the Debtor's Chapter 11 case, pay suppliers and other parties. As reported in the Troubled Company Reporter on Nov. 23, 2010, Wells Fargo, asserted a senior mortgage lien and against the Debtor's residential apartment project in Richton Park, Illinois, known as Park Towers, pursuant to a senior mortgage indebtedness of $29.50 million. Wells Fargo also asserted a security interest in and lien upon, among other things, the rents being generated at the property. As adequate protection for any diminution in value of the lenders' collateral, the Debtor will grant Wells Fargo a valid, perfected, enforceable and non-avoidable first priority interest in and lien and mortgage upon all of the Debtor's assets. The Debtor will also provide the Wells Fargo any reports or other information concerning any sale or proposed sale of the Debtor's assets, well as other financial and other information concerning the business, financial affairs of the Debtor and the operation of the collateral. On the 15th day of each month, the Debtor will provide the Wells Fargo an operating statement and a weekly cash flow report. About Lioncrest Towers, LLC Lioncrest Towers, LLC, owns and operates a residential apartment project in Richton Park, Illinois, known as Park Towers. It filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 10-36805) on Aug. 17, 2010. Richard H. Fimoff, Esq., at Robbins, Salomon & Patt, Ltd., in Chicago, assists the Debtor in its restructuring effort. The Debtor estimated assets and debts at $10 million to $50 million. LIONCREST TOWERS: Hearing on Plan Disclosures Today --------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois will convene a hearing today, Sept. 13, 2011, at 10:30 a.m, to consider adequacy of the Disclosure Statement explaining Lioncrest Towers LLC's Chapter 11 Plan. As reported in the Troubled Company Reporter on Aug. 22, 2011, the Debtor's Disclosure Statement explains that, under the Debtor's Chapter 11 plan of reorganization, secured creditor Wells Fargo, owed $29.5 million, will be paid in full. It will be paid in monthly installments of interest for five years, plus four annual principal repayments of $300,000 each, with payment of the unpaid balance at the end of the fifth year. Unsecured creditors will also be paid in full in quarterly installments with interest over one year. Unsecured creditors are expected to recover $38,917 plus interest at 5%. Equity owners will receive no distribution but will retain its ownership interest. About Lioncrest Towers, LLC Lioncrest Towers, LLC, owns and operates a residential apartment project in Richton Park, Illinois, known as Park Towers. It filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 10-36805) on Aug. 17, 2010. Richard H. Fimoff, Esq., at Robbins, Salomon & Patt, Ltd., in Chicago, assists the Debtor in its restructuring effort. The Debtor estimated assets and debts at $10 million to $50 million. LOS ANGELES DODGERS: Files Schedules of Assets and Liabilities -------------------------------------------------------------- LA Real Estate LLC filed its schedules of assets and liabilities in the U.S. Bankruptcy Court for the District of Delaware, disclosing: Name of Schedule Assets Liabilities ---------------- ------------ ----------- A. Real Property $157,095,217 B. Personal Property $4,666,666 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $0 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $0 ------------ ---------- TOTAL $161,761,883 $0 Affiliates also filed schedules of assets and liabilities, disclosing Assets Liabilities ------------ ----------- Los Angeles Dodgers LLC $77,963,734 $4,695,702 LA Holdco LLC 0 0 Los Angeles Dodgers Holding Company LLC 0 0 LA Real Estate Holding Company LLC 0 0 A full-text copy of the schedules of Los Angeles Dodgers LLC is available for free at http://bankrupt.com/misc/LADLLC_losangelesdodgersllc_sal.pdf A full-text copy of the schedules of LA Real Estate LLC is available for free at http://bankrupt.com/misc/LADLLC_larealestate_sal.pdf A full-text copy of the schedules of LA Holdco LLC s available for free at http://bankrupt.com/misc/LADLLC_laholdco_sal.pdf A full-text copy of the schedules of LOS Angeles Dodgers Holding Company LLC s available for free at http://bankrupt.com/misc/LADLLC_losangelesdodgers_sal.pdf A full-text copy of the schedules of LA Real Estate Holding Company LLC s available for free at http://bankrupt.com/misc/LADLLC_larealestateholding_sal.pdf About the Los Angeles Dodgers Los Angeles Dodgers LLC operates the Los Angeles Dodgers, a professional Major League Baseball club in the Los Angeles metropolitan area. Frank McCourt, a Boston real-estate developer who unsuccessfully bid for the Boston Red Sox, bought the Dodgers from Rupert Murdoch's Fox Entertainment Group, Inc. in 2004 for $330 million. Mr. McCourt also bought the Dodgers Stadium from Fox for $100 million. Los Angeles Dodgers LLC filed for bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12010) on June 27, 2011, after MLB Commissioner Bud Selig rejected a television deal with News Corp.'s Fox Sports, leaving Mr. McCourt unable to make payroll for June 30 and July 1. Fox Sports has exclusive cable television rights for Dodgers games until the end of 2013 baseball season. Chapter 11 filings were also made for LA Real Estate LLC, an affiliated entity which owns Dodger Stadium, and three other related holding companies. The petition estimates assets of up to $500 million and debts of up to $1 billion. According to Forbes, the team is worth about $800 million, making it the third most valuable baseball team after the New York Yankees and the Boston Red Sox. Judge Kevin Gross presides over the case. Lawyers at Young, Conaway, Stargatt & Taylor and Dewey & LeBoeuf LLP serve as the Debtors' bankruptcy counsel. Epiq Bankruptcy Solutions LLC is the claims and notice agent. The LA Dodgers is the 12th sports team in North America to have sought bankruptcy protection, according to The Wall Street Journal. The reorganization is being financed with a $150 million unsecured loan from the Commissioner of Major League Baseball. The loan gives the Commissioner few of the controls lenders often demanded from bankrupt companies. LOS ANGELES SYNDICATE: Posts $47,200 Net Loss in Second Quarter --------------------------------------------------------------- Los Angeles Syndicate of Technology, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $47,275 on $30,000 of revenues for the three months ended June 30, 2011, compared with a net loss of $35,222 on $nil revenue for the same period of 2010. The Company recorded a change in unrealized depreciation of investments of $27,374 for the three months ended June 30, 2011, compared to $124 for the three months ended June 30, 2010. The Company reported net income of $2.79 million on $57,500 of revenues for the six months ended June 30, 2011, compared with a net loss of $80,464 on $nil revenue for the same period of 2010. The Company recorded a change in unrealized appreciation of investments of $2.86 million for the six months ended June 30, 2011, compared to a change in unrealized depreciation of $124 for the six months ended June 30, 2010. The Company's balance sheet at June 30, 2011, showed $11.66 million in total assets, $133,676, and net assets of $11.53 million. Paritz & Company, P.A., in Hackensack, New Jersey, expressed substantial doubt about Los Angeles Syndicate of Technology's ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 31, 2010. The independent auditors noted that the Company will need to raise capital through sales of Company stock to provide sufficient cash flow to fund the Company's operations. A copy of the Form 10-Q is available at http://is.gd/qy5zhU The Company reported net income of $5.78 million on $45,000 of revenues for 2010, compared with a net loss of $345,941 on $nil revenue for 2009. The Company recorded a change in unrealized appreciation of investments $5.85 million for 2010, compared with $6,949 for 2009. The Company's balance sheet at Dec. 31, 2010, showed $8.73 million in total assets, $2.90 million in total liabilities, and net assets of $5.83 million. A copy of the Form 10-K/A is available at http://is.gd/KfsA8O Los Angeles Syndicate of Technology, Inc., headquartered in Las Vegas, Nev., is a technology incubator that creates, builds, and invests in web and mobile technology companies. The Company develops businesses in digital media, consumer internet, and social networking, and own six companies at different stages of development. M WAIKIKI: Replaces Marriott With New Management Company -------------------------------------------------------- C. Benjamin Ford, staff writer at Gazette.net, reports that owners of a Honolulu hotel kicked out its Marriott International operators and brought in a new management company, a takeover that the Bethesda hotel said it would fight in court. According to the report, they were the latest salvos in a dispute that ignited this spring, when owner M Waikiki LLC of Honolulu sued Marriott, claiming the hotelier wasn't doing enough to promote its Edition brand, under which the Hawaiian hotel operated. "The owner and its partners raided the hotel literally under cover of night, forcibly taking over the property and threatening our employees with dismal unless they immediately agreed to a change of management," the report quotes Arne Sorenson, Marriott's president and COO, in a written statement. "We will aggressively and vigorously pursue all remedies against the owner and its partners in this illegal act." Marriott said M Waikiki still has 29 years remaining under the current management agreement with Marriott The report notes Marriott said it will seek compensation from M Waikiki for damages to the operations and reputation of the hotel, Marriott and the Edition brand. Under Marriott's management, the hotel has shown an operating loss of $6 million so far, with its occupancy rate only 29.5 percent in last year's fourth quarter, according to the suit. 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. The Company located at 12250 El Camino Real, Suite 220, filed for Chapter 11 protection (Bankr. D. Hawaii Case No. 11-02371) on Aug. 31, 2011. Judge Robert J. Faris presides over the case. Patrick J. Neligan, Esq., at Neligan Foley LLP, and Simon Klevansky, Esq., at Klevansky Piper, LLP, represent the Debtor. The Debtor listed both assets and debts of between $100 million and $500 million. MACCO PROPERTIES: Trustee Taps Sperry Van Ness as Listing Broker ---------------------------------------------------------------- Michael E. Deeba, the appointed Chapter 11 Trustee in the Chapter 11 case of Macco Properties, Inc., asks the U.S. Bankruptcy Court for the Western District of Oklahoma for permission to retain William T. Strange and Associates, LLC, doing business as Sperry Van Ness to provide professional services in the Chapter proceedings. The trustee relates that prior to bankruptcy, Sperry Van Ness had been hired to list and sale the certain property owned by Reserve Properties, LLC and Lake Villa LLC, companies owned and managed by Macco Properties, Inc. Those listing agreements expired on May 31, 2011. Sperry Van Ness will be listing broker/realtor on (i) certain real property owned by 9900 OV, LLC described as: 11 acres, Section 13, Township 12 North, Range 5 West, Canadian County, Oklahoma; and (ii) identified as Reserve on the Lake and Lake Villa located in two areas described as (1) South of NW 36th Street and West of Morgan Road and Lake Overholser; and (2) south of U.S. Highway 66 and East of John Kilpatrick Turnpike Extension in Canadian County, Oklahoma, and described as: The 129.81 acres (+/-) consisting of the Planned Unit Development known as Reserve on the Lake (93.32 acres of Section 23, Township 12 North, Range 5 West of the Indian Meridian, Canadian County, Oklahoma) and the Planned Unit Development known as Lake Villa (36.49 acres of Section 14, Township 12 North, Range 5 West Canadian County, Oklahoma). Sperry Van Ness will also: a) evaluate the property of the Debtor's estate; and b) instruct and advise the trustee as to a marketing plan for and the eventual sale of the property of the Debtor estate. To the best of the trustee's knowledge, Sperry Van Ness is a "disinterested person" as that term is defined by Section 101(14) of the Bankruptcy Code. The Chapter 11 trustee is represented by: Janice D. Loyd, Esq. James H. Bellingham, Esq. BELLINGHAM & LOYD, P.C. 620 North Robinson, Suite 207 Oklahoma City, OK 73102 Tel: (405) 235-9371 Fax: (405) 232-1003 E-mail: jdltrustee@bellinghamloyd.com jbellingham@bellinghamloyd.com About Macco Properties Oklahoma City, Oklahoma-based Macco Properties, Inc., is a real estate holding and management company which is the sole member of numerous limited liability companies. The limited liability companies own 27 real estate properties, consisting primarily of apartment complexes, and commercial office space situated in Oklahoma and Kansas. The Company filed for Chapter 11 bankruptcy protection (Bankr. W.D. Okla. Case No. 10-16682) on Nov. 2, 2010. Bobbie G. Bayless, Esq., at Bayless & Stokes, in Houston, and Michael Paul Kirschner, Esq., at Robertson & Williams, in Oklahoma City, Okla., serve as the counsel to the Debtors. The Debtor disclosed $50,823,581 in total assets, and $4,323,034 in total liabilities. The Official Unsecured Creditors' Committee is represented by Ruston C. Welch, at Welch Law Firm, P.C., in Oklahoma City, Oklahoma. As reported in the TCR on June 17, 2011, the Bankruptcy Court approved the appointment of Michael E. Deeba as the Chapter 11 trustee in the case of Macco Properties, Inc. Richard A. Weiland, the U.S. Trustee for Region 20, selected Mr. Deeba pursuant to the order directing the appointment of a Chapter 11 trustee dated May 31, 2011. Janice Loyd, Esq., represents the Chapter 11 Trustee. MADDEN CORPORATION: Case Summary & 11 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Madden Corporation dba Pams The Delivery Service dba National Messenger Service 733 W. Taft Ave. Orange, CA 92865 Bankruptcy Case No.: 11-22572 Chapter 11 Petition Date: September 6, 2011 Court: United States Bankruptcy Court Central District Of California (Santa Ana) Debtor's Counsel: Edward A. Weiss, Esq. 700 S Macduff St. Anaheim, CA 92804 Tel: (714) 952-3752 Fax: (714) 333-9362 E-mail: edweiss1@att.net Scheduled Assets: $693,271 Scheduled Debts: $1,239,903 A list of the Company's 11 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb11-22572.pdf The petition was signed by Donald L. Madden, president. MARCO POLO: Creditors Blast DIP Financing as Inside Job ------------------------------------------------------- Evan Weinberger at Bankruptcy Law360 reports that a slew of creditors on Friday blasted Marco Polo Seatrade BV's request for $4.8 million in debtor-in-possession financing in New York bankruptcy court as a textbook example of insider dealing that should be blocked. According to an opposition motion filed in Manhattan by the Royal Bank of Scotland PLC, the proposed $4.8 million postpetition financing package Marco Polo has agreed to with Futmarine BV is actually money that should be going to creditors. 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. MARFIG ALIMENTOS: High Leverage Cues Fitch to Hold Low-B Ratings ---------------------------------------------------------------- Fitch Ratings affirmed all ratings of Marfrig Alimentos S.A. and its subsidiaries. The ratings affirmed were as follows: Marfrig Alimentos S.A. -- Local currency IDR at 'B+'; -- Foreign currency IDR at 'B+'; -- National scale rating at 'BBB+(bra)'; -- BRL 300 million 3rd debentures issue (1st tranche) at 'BBB+ (bra)'; -- BRL 300 million 3rd debentures issue (2nd tranche) at 'BBB+ (bra)'. Marfrig Overseas Ltd -- Foreign currency IDR at 'B+'; -- US$375 million senior unsecured notes due 2016 at 'B+/RR4'; -- US$500 million senior unsecured notes due 2020 at 'B+/RR4'. Marfrig Holdings (Europe) B.V. -- Foreign currency IDR at 'B+'; -- US$750 million senior unsecured notes due 2018 at 'B+/RR4'; The Rating Outlook for all of the aforementioned ratings is Stable. The ratings reflect Marfrig's high leverage and negative free cash flow generation as a result of its aggressive growth strategy, and incorporate Fitch's expectation of improvement on both counts as a result of the ongoing shift towards a more conservative financial strategy and operational improvements. The ratings also take into consideration the volatility of protein prices and profit margins due to factors beyond the company's control. The ratings are supported by Marfrig's strong business position, as one of the largest producers and exporters of beef, poultry, and pork in Brazil and its increasing portfolio of processed foods (currently about 37% of revenue). The company's production base is diversified and its sales are evenly distributed between the domestic market and export sales, which give it a more diversified business profile than most of its peers. Earnings Volatility Protein prices are volatile by nature as are input costs. The company's profit margins reflect this volatility. Price and cost volatility is affected by factors beyond the company's control - domestic and international supply and demand imbalances resulting from animal disease and weather conditions, global economic growth, changes in consumption habits, and government-imposed sanitary and trade restrictions. Competitive pressures from other Brazilian or international producers and exporters also affect the company's margins. Increasing Processed Food Portfolio Mitigates Risks Fitch positively considers Marfrig's strategy of reducing pure protein exposure by increasing its share in processed food segment, which is less volatile and commands higher margins. Last year's acquisition of Keystone Foods LLC (Keystone) strengthened Marfrig's competitive position in the value-added protein products market and is consistent with the company's previous acquisition of Seara food brands. Keystone produces and distributes to food service companies in 13 countries, and has a large customer concentration with McDonald's, which represents 82% of Keystone's sales. Weak Free Cash Flow; Expected to Improve in 2012 While Marfrig's aggressive acquisition based growth strategy has been financed with a mix of debt and equity. It has led to increasing working capital requirements and resulted in negative free cash flow generation over the past few years. As the management's focus shifts from growth to improving operations, working capital management and extracting synergies from prior acquisitions, FCF is expected to strengthen and turn positive in 2012. The company is on track to achieving about BRL 200 million synergies from the integration of Seara in 2011, which partially offsets challenging conditions in the first half of 2011 due to higher raw material prices, higher labor expenses and the appreciation of the Brazilian real against the U.S. dollar. During the LTM ended June 30, 2011, Marfrig's FCF was negative BRL 2 billion mostly due to weaker results, an increase in the use of working capital and BRL 1.4 billion of capital expenditures. Both, capital expenditures and working capital needs are expected to decline in the second half of 2011 and to remain lower in 2012. High Leverage, Expected to Improve As of June 30, 2011, Marfrig's gross and net adjusted debt to EBITDA was 7.7 times (x) and 4.9x. Considering Keystone's acquisition (last September), the pro-forma gross and net leverage ratios of Marfrig are approximately 6.7x and 4.3x, respectively. Fitch projects an improvement in Marfrig's leverage ratios within the next year as a result of the more conservative financial strategy of the management and improvement in the company's performance in the second half of 2011 due to continuous efforts to cut cost via plant closures and the realization of acquisition synergies. What Would Lead to a Positive/Negative Rating Action: Marfrig's rating could be positively affected by some combination of the following: a significant decrease in leverage and sustained generation of positive FCF. A rating downgrade could be triggered by a material rise in the company's total debt credit ratios due to deteriorating operations or continues negative free cash flow generation resulting from trade restrictions or sanitary outbreaks or a general weakening of the operating environment. A debt financed acquisition, although considered unlikely by Fitch at this time, could also result in rating deterioration. MARONDA HOMES: Can Continue Using Lenders' Cash Until Nov. 10 ------------------------------------------------------------- In a second amended order dated Aug. 26, 2011, Judge Judith K. Fitzgerald of the U.S. Bankruptcy Court for the Western District of Pennsylvania granted Maronda Homes, Inc., et al., permission to continue using cash through Nov. 10, 2011, in the form of the net proceeds received upon closings of the sale of residential homes built by the Debtors. If, as of Nov. 10, 2011, the amount of cash collateral collected from closings that occur between April 18 and Nov. 10 exceeds the actual or accrued expenditures of the Debtors as authorized by the Court, the amount of that excess may be applied by the lenders to the principal loan balance then outstanding under the credit agreement. A final hearing on the motion to use cash collateral will be held on Oct. 28, 2011, at 9:00 a.m. The Lenders are: Bank of America, N.A., Wells Fargo Bank, N.A., Wachovia Bank, National Association, PNC Bank, National Association, KeyBank National Association, Huntington National Bank, Fifth Third Bank, Regions Bank, BMO Capital Markets Financing, Inc., SunTrust Bank, N.A., Compass Bank (as successor to Guaranty Bank), Compass Bank, Comerica Bank, and U.S. Bank National Association. A copy of the Second Amended Order is available at http://bankrupt.com/misc/maronda.2ndamendedccorder.pdf About Maronda Homes Maronda Homes, Inc., based in Clinton, Pennsylvania, near Pittsburgh, builds homes in Florida, Pennsylvania, Georgia and Kentucky. It filed for Chapter 11 bankruptcy protection (Bankr. W.D. Pa. Case No. 11-22418) on April 18, 2011. Joseph F. McDonough, Esq., and James G. McLean, Esq., at Manion Mcdonough & Lucas, P.C., serve as the Debtor's bankruptcy counsel. In its schedule, Maronda Homes, Inc., disclosed $83,784,549 in assets and $91,773,703 in liabilities. Affiliates Maronda Homes, Inc. of Ohio (Bankr. W.D. Pa. Case No. 11-22422) and Maronda Homes of Cincinnati, LLC (Bankr. W.D. Pa. Case No. 11-22424) simultaneously filed separate Chapter 11 petitions on April 18, 2011. MERCED FALLS: Court Authorizes Aherton & Assoc. as Accountants -------------------------------------------------------------- The Bankruptcy Court has authorized Merced Falls Ranch LLC to employ as its accountants: ATHERTON & ASSOCIATES 1140 Scenic Drive Modesto, CA 95350 Tel: 209-577-4800 Fax: 209-577-1323 Compensation will be at the "lodestar rate" for accounting services applicable at the time that services are rendered in accordance with the Ninth Circuit decision in In re Manoa Fin. Co. Monthly applications for interim compensation pursuant to Section 331 of the Bankruptcy Code will be entertained provided the accrued fees and costs exceed $5,000 net of fees incurred in connection with prior fee applications. Merced Falls Ranch LLC filed a Chapter 11 petition (Bankr. E.D. Calif. Case No. 11-19212) on Aug. 16, 2011, in Fresno, California. The Debtor disclosed assets of $100 million to $500 million and debts of $10 million to $50 million. Judge W. Richard Lee presides over the case. Walter & Wilhelm Law Group serves as the Debtor's bankruptcy counsel. The petition was signed by Stephen W. Sloan, the Debtor's member. MERCED FALLS: Hires Walter & Wilhelm as Bankruptcy Counsel ---------------------------------------------------------- Merced Falls Ranch LLC has been authorized by the Bankruptcy Court to employ Walter & Wilhelm Law Group as Chapter 11 counsel. The firm's attorney billing rates range from $200 to $420 per hour. Rates for paralegals and law clerks range from $125 to $150 per hour. Prior to the petition date, the Debtor paid the firm a $60,000 retainer. The firm drew down on the retainer, leaving $49,321. Merced Falls Ranch LLC filed a Chapter 11 petition (Bankr. E.D. Calif. Case No. 11-19212) on Aug. 16, 2011, in Fresno, California. The Debtor disclosed assets of $100 million to $500 million and debts of $10 million to $50 million. Judge W. Richard Lee presides over the case. Walter & Wilhelm Law Group serves as the Debtor's bankruptcy counsel. The petition was signed by Stephen W. Sloan, the Debtor's member. MERUELO MADDUX: Former CEO, President Want $3MM in Unpaid Wages --------------------------------------------------------------- Lisa Uhlman at Bankruptcy Law360 reports that Meruelo Maddux Properties Inc.'s former president and its ex-CEO told a California federal judge Thursday that the reorganized developer owes them more than $3 million total in unpaid wages. In similar motions for administrative claims, former President John Charles Maddux claims the company has refused to pay him $538,000 in cash bonuses and expenses, while former CEO Richard Meruelo is seeking $563,425 in bonuses and $2 million in severance payments, wages and fees, according to Law360. About Meruelo Maddux Meruelo Maddux and its affiliates filed for Chapter 11 protection (Bankr. C.D. Calif. Lead Case No. 09-13356) on March 26, 2009. John N. Tedford, IV, Esq., and Enid M. Colson, Esq., at Danning Gill, Diamond & Kollitz, LLP, in Los Angeles, represent the Debtors in their restructuring effort. The Debtors' financial condition as of Dec. 31, 2008, showed $681,769,000 in assets and $342,022,000 of debts. FTI Consulting, Inc., serves as the Debtors' financial advisors, Ernst & Young as independent auditors and tax advisors, DLA Piper LLP (US) as special securities and litigation counsel, and Waldron & Associates, Inc. as real estate appraiser. The U.S. Trustee has appointed an official committee of unsecured creditors and a separate official shareholders' committee in the case. SulmeyerKupetz, APC, serves as the Creditors Committee's counsel and Kibel Green, Inc., as its financial advisor. The equity committee has sought to retain Ron Orr & Professionals, Inc., Rodiger Law Office, and Jenner & Block as counsel, and Kibel Green, Inc. as its financial advisor. The Debtors have hired Kurtzman Carson Consultants as solicitation and balloting agent. The Debtors; Legendary Investors Group No. 1, LLC, and East West Bank; and Charlestown Capital Advisors, LLC and Hartland Asset Management Corporation have proposed rival reorganization plans in the case. In mid-January 2011, the Debtors struck a deal with the Legendary Group to drop the group's competing plan. Legendary Investors Group No. 1, LLC, is represented in the case by Jeremy V. Richards, Esq., and Jeffrey W. Dulberg, Esq., at Pachulski Stang Ziehl & Jones LLP; and Surjit P. Soni, Esq., at The Soni Law Firm. East West Bank is represented by Curtis C. Jung, Esq., and Monica H. Lin, Esq., at Jung & Yuen, LLP, and Elmer Dean Martin III, Esq. Charlestown Capital Advisors, LLC and Hartland Asset Management Corporation are represented in the case by Christopher E. Prince, Esq., Matthew A. Lesnick, Esq., and Andrew R. Cahill, Esq., at Lesnick Prince LLP. MITRAN INC: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Mitran, Inc. dba Mr. Transmission/Milex P.O. Box 5239 Beaumont, TX 77726-5239 Bankruptcy Case No.: 11-10525 Chapter 11 Petition Date: September 5, 2011 Court: United States Bankruptcy Court Eastern District of Texas (Beaumont) Debtor's Counsel: Margaret M. McClure, Esq. LAW OFFICE OF MARGARET M. MCCLURE 909 Fannin Street, Suite 3810 Houston, TX 77010 Tel: (713) 659-1333 Fax: (713) 658-0334 E-mail: margaret@mmmcclurelaw.com Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Gordon J. Ricossa, president. MOHEGAN TRIBAL: Mario Kontomerkos Appointed as CFO -------------------------------------------------- The Mohegan Tribal Gaming Authority appointed Mario C. Kontomerkos as Chief Financial Officer of the Authority, replacing Leo M. Chupaska, who has been appointed as the Vice President of Investor Relations of the Authority. Mr. Kontomerkos, age 35, was the Corporate Vice President of Finance of Penn National Gaming, Inc., from March 2010 to July 2011. Prior to that, Mr. Kontomerkos served as a senior investor at Magnetar Capital LLC, an investment management company, from July 2007 to May 2009, and was a research analyst for the gaming and lodging industries at J.P. Morgan Securities from May 2005 to May 2007. In connection with his appointment as Chief Financial Officer of the Authority, Mr. Kontomerkos entered into an employment agreement, effective Sept. 1, 2011. Mr. Kontomerkos's annual base salary under the employment agreement is $675,000, subject to an annual increase commencing Jan. 1, 2013, at the discretion of the Authority. The agreement also provides for a relocation payment of $100,000, payable on the effective date. The agreement expires on Dec. 31, 2014, subject to automatic renewal for an additional term of three years unless either party provides notice to the other on or before the 180th day prior to the end of the agreement's stated term of an intention to terminate at the stated termination date. The employment agreement provides that, if Mr. Kontomerkos is terminated for cause, or if Mr. Kontomerkos terminates his employment voluntarily, then he will not be entitled to any further compensation and, if such termination occurs within one year of the effective date of the agreement, Mr. Kontomerkos will be required to reimburse the Authority the unamortized portion of the relocation payment, amortized on a straight line basis over the one year period after the effective date. If Mr. Kontomerkos is terminated other than for cause, he will be entitled to receive his annual salary from the date of termination to the expiration date of the agreement, without regard to any renewal right after the date of termination. The employment agreement further provides that Mr. Kontomerkos may not, without prior written consent, compete with the Authority in specified states in the northeastern United States during the term of his employment and for a one-year period following termination of employment. Also, during this period, Mr. Kontomerkos may not hire or solicit other employees of the Authority or encourage any such employees to leave employment with the Authority. A full-text copy of the Employment Agreement is available for free at http://is.gd/vjwSgt About Mohegan Tribal Headquartered in Uncasville, Conn., Mohegan Tribal Gaming Authority conducts and regulates gaming activities on Tribal lands, which are federally recognized Indian tribe reservations in southeastern Connecticut. The Authority has noted that its Bank Credit Facility matures on March 9, 2012 and its 2002 Senior Subordinated Notes mature on April 1, 2012. In addition, a substantial portion of the Authority's remaining indebtedness matures over the following three fiscal years. The Authority believes that it will need to refinance all or part of its indebtedness at or prior to each maturity thereof in order to maintain sufficient resources for its operations. The Authority has engaged Blackstone Advisory Partners, L.P. to assist in its strategic planning relating to its debt maturities. The Company's balance sheet at June 30, 2011, showed $2.17 billion in total assets, $1.99 billion in total liabilities, and $176.04 million in total capital. * * * At the end of November 2010, Moody's Investors Service downgraded Mohegan Tribal Gaming Authority's Corporate Family and Probability of Default ratings to Caa2 from B3. All of MTGA's rated long-term debt was also lowered. The rating outlook is negative. The ratings downgrade reflects Moody's view that MTGA could find it difficult to refinance significant upcoming debt maturities without some impairment to bondholders given its high leverage -- debt/EBITDA is over 7 times -- limited near-term growth prospects for Mohegan Sun Casino, the likely continuation of weak consumer gaming demand trends in the Northeastern U.S., and the strong possibility of gaming in Massachusetts. The company's $675 million revolver ($527 million outstanding at Sept. 30, 2010) expires in March 2012 and its $250 million 8% senior subordinated notes mature in April 2012. Combined, these debt items account for about 50% of MTGA's total debt outstanding. MTGA has announced that it hired Blackstone Group to help deal with its capital structure issues, although no details have been made available regarding MTGA's options. Given the company's recently announced weak fiscal fourth quarter results along with the significant near- and long-term challenges previously mentioned, Moody's believes a restructuring that involves some impairment to bondholders will be considered. The negative ratings outlook reflects the relatively short time frame in which MTGA has to address what Moody's believes to be a significant capital structure issue. If MTGA is not able to refinance by March 2011 its $675 million revolver will be become current. The same holds true for the company's $250 million 8% senior subordinated notes to the extent these notes are not refinanced by April 1, 2011. MSR RESORT: Settlement Deal on Club Membership Agreements OK'd -------------------------------------------------------------- The Hon. Sean H. Lane of the Bankruptcy Court for the Southern District of New York approved MSR Resort Golf Course LLC, et al.'s settlement agreement. The terms of the settlement agreement (i) changes the terms of the membership agreements with the members of the Clubs at PGA West and the Citrus Club; and (ii) authorizes the Debtors to assume the membership agreements with the members of the Clubs at PGA West and the Citrus Club. The Annual Refund Caps for 30-Year Refunds and Death Refunds, is approved with respect to and binding upon all members; provided, however, current Resign Members (i.e., members who have given proper notice of their resignation to the applicable Club as of the date of the entry of the Order) will have 30 days to opt out of the terms providing for 50% reduction of their Resign Refunds as: a) within seven days from the entry of the Order, the Debtors will provide current Resign Members with (i) comprehensive notice that they have 30 days to opt out of the 50% reduction of their Resign Refunds and (ii) an opt-out election form, which will be accompanied by an explanatory letter from the applicable Club; b) for any current Resign Member who opts out of the 50% reduction of his or her Resign Refunds, the Debtors will, on or before the effective date of a plan either: i. assume such Resign Member's membership agreement under the terms of the pre-settlement Membership Plans, including resign list treatment that (A) allows for Resign List Ratios of up to 5-for-1 at PGA West and 4-for-1 at the Citrus Club and (B) does not count memberships outside of the same class of membership; or ii. reject such Resign Member's membership agreement and treat him or her as a holder of a claim against the applicable Debtor's estate to be paid at its present value; and c) upon the expiration of the 30-day opt-out period, the Debtors will have an additional seven days to determine whether, in their sole discretion, based on the number and amount of opt-outs, the Debtors will terminate or proceed with the Settlement Agreement. The Court also ordered that the terms of the Settlement Agreement will authorize, but not direct, the Debtors to modify the Membership Agreements and related membership plans as of Sept. 1, 2011. About MSR Resort MSR Hotels & Resorts, formerly known as CNL Hotels & Resorts Inc., owns a portfolio of eight luxury hotels with over 5,500 guest rooms, including the Arizona Biltmore Resort & Spa in Phoenix, the Ritz-Carlton in Orlando, Fla., and Hawaii's Grand Wailea Resort Hotel & Spa in Maui. On Jan. 28, 2011, CNL-AB LLC acquired the equity interests in the portfolio through a foreclosure proceeding. CNL-AB LLC is a joint venture consisting of affiliates of Paulson & Co. Inc., a joint venture affiliated with Winthrop Realty Trust, and affiliates of Capital Trust, Inc. Morgan Stanley's CNL Hotels & Resorts Inc. owned the resorts before the Jan. 28 foreclosure. Following the acquisition, five of the resorts with mortgage debt scheduled to mature on Feb. 1, 2011, were sent to Chapter 11 by the Paulson and Winthrop joint venture affiliates. MSR Resort Golf Course LLC and its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-10372) in Manhattan on Feb. 1. The resorts subject to the filings are Grand Wailea Resort and Spa, Arizona Biltmore Resort and Spa, La Quinta Resort and Club and PGA West, Doral Golf Resort and Spa, and Claremont Resort and Spa. James H.M. Sprayregen, P.C., Esq., Paul M. Basta, Esq., Edward O. Sassower, Esq., and Chad J. Husnick, Esq., at Kirkland & Ellis, LLP, serve as the Debtors' bankruptcy counsel. Houlihan Lokey Capital, Inc., is the Debtors' financial advisor. Kurtzman Carson Consultants LLC is the Debtors' claims agent. The five resorts had $2.2 billion in assets and $1.9 billion in debt as of Nov. 30, 2010, according to court filings. In its schedules, debtor MSR Resort disclosed $59,399,666 in total assets and $1,013,213,968 in total liabilities. MSR RESORT: Miller Buckfire to Receive $2MM as Partial Settlement ----------------------------------------------------------------- The Hon. Sean H. Lane of the U.S. Bankruptcy Court for the Southern District of New York approved the agreement between MSR Resort Golf Course LLC, et al., and Miller Buckfire & Co. LLC, settling the creditor's claims that they owed it for restructuring work it did before their Chapter 11 filing. The Court ordered that Miller Buckfire will be entitled to a $4,000,000 allowed, general unsecured claim that will be allocated among one or more of the Debtors. As partial satisfaction of the settlement claim, the Debtors will pay to Miller Buckfire, by wire transfer in immediately available funds, the amount of $2,000,000. A full-text copy of the order and the settlement agreement is available for free at http://bankrupt.com/misc/MSRRESORT_settlement_millerbuckfire.pdf About MSR Resort MSR Hotels & Resorts, formerly known as CNL Hotels & Resorts Inc., owns a portfolio of eight luxury hotels with over 5,500 guest rooms, including the Arizona Biltmore Resort & Spa in Phoenix, the Ritz-Carlton in Orlando, Fla., and Hawaii's Grand Wailea Resort Hotel & Spa in Maui. On Jan. 28, 2011, CNL-AB LLC acquired the equity interests in the portfolio through a foreclosure proceeding. CNL-AB LLC is a joint venture consisting of affiliates of Paulson & Co. Inc., a joint venture affiliated with Winthrop Realty Trust, and affiliates of Capital Trust, Inc. Morgan Stanley's CNL Hotels & Resorts Inc. owned the resorts before the Jan. 28 foreclosure. Following the acquisition, five of the resorts with mortgage debt scheduled to mature on Feb. 1, 2011, were sent to Chapter 11 by the Paulson and Winthrop joint venture affiliates. MSR Resort Golf Course LLC and its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-10372) in Manhattan on Feb. 1. The resorts subject to the filings are Grand Wailea Resort and Spa, Arizona Biltmore Resort and Spa, La Quinta Resort and Club and PGA West, Doral Golf Resort and Spa, and Claremont Resort and Spa. James H.M. Sprayregen, P.C., Esq., Paul M. Basta, Esq., Edward O. Sassower, Esq., and Chad J. Husnick, Esq., at Kirkland & Ellis, LLP, serve as the Debtors' bankruptcy counsel. Houlihan Lokey Capital, Inc., is the Debtors' financial advisor. Kurtzman Carson Consultants LLC is the Debtors' claims agent. The five resorts had $2.2 billion in assets and $1.9 billion in debt as of Nov. 30, 2010, according to court filings. In its schedules, debtor MSR Resort disclosed $59,399,666 in total assets and $1,013,213,968 in total liabilities. NEBRASKA BOOK: Committee Can Hire Lowenstein Sandler as Co-Counsel ------------------------------------------------------------------ The Hon. Peter J. Walsh U.S. Bankruptcy Court for the District of Delaware authorized the Official Committee of Unsecured Creditors in the Chapter 11 cases of Nebraska Book Company, Inc., et al., to retain Lowenstein Sandler PC as co-counsel. About Nebraska Book Company Lincoln, Nebraska-based Nebraska Book Company, Inc., is one of the leading providers of new and used textbooks for college students in the United States. Nebraska Book and seven affiliates filed separate Chapter 11 petitions (Bankr. D. Del. Case Nos. 11-12002 to 11-12009) on June 27, 2011. Hon. Peter J. Walsh presides over the case. lawyers at Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP, serve as the Debtors' bankruptcy counsel. The Debtors; restructuring advisors are AlixPartners LLC; the investment bankers are Rothschild, Inc.; the auditors are Deloitte & Touche LLP; and the claims agent is Kurtzman Carson Consultants LLC. As of the petition date, the Debtors had consolidated assets of $657,215,757 and debts of $563,973,688. JPMorgan Chase Bank N.A., as administrative agent for the DIP lenders, is represented by lawyers at Richards, Layton & Finger, P.A., and Simpson Thacher & Bartlett LLP. J.P. Morgan Investment Management Inc., the DIP arranger, is represented by lawyers at Bayard, P.A., and Willkie Farr & Gallagher LLP. The U.S. Trustee appointed in the Chapter 11 case of Nebraska Book Co. an official creditors' committee composed of two indenture trustees and three trade suppliers. U.S. Bank NA and Bank of New York Mellon Trust Co. NA are the indenture trustees. The trade creditors include subsidiaries of jeans maker VF Corp. and publisher Reed Elsevier Group Plc. An ad hoc committee of holders of more than 50% of the Debtors' Second Lien Notes is represented by lawyers at Brown Rudnick. An ad hoc committee of holders of the Debtors' 8.625% unsecured notes are represented by Milbank, Tweed, Hadley & McCloy LLP. NEBRASKA BOOK: Creditors Panel Taps Mesirow Financial as Advisors ----------------------------------------------------------------- The Hon. Peter J. Walsh U.S. Bankruptcy Court for the District of Delaware authorized the Official Committee of Unsecured Creditors in the Chapter 11 cases of Nebraska Book Company, Inc., et al., to retain Mesirow Financial Consulting, LLC as its financial advisors. As reported in the Troubled Company Reporter on Aug. 1, 2011, the hourly rates of Mesirow Financial's personnel are senior managing director, managing director and director at $775 to $825, senior vice president at $665 to $725, vice president at $565 to $625, senior associate at $465 to $525, associate at $285 to $395, and paraprofessional at $145 to $240. To the best of the Committee's knowledge, Mesirow Financial is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Nebraska Book Company Lincoln, Nebraska-based Nebraska Book Company, Inc., is one of the leading providers of new and used textbooks for college students in the United States. Nebraska Book and seven affiliates filed separate Chapter 11 petitions (Bankr. D. Del. Case Nos. 11-12002 to 11-12009) on June 27, 2011. Hon. Peter J. Walsh presides over the case. lawyers at Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP, serve as the Debtors' bankruptcy counsel. The Debtors; restructuring advisors are AlixPartners LLC; the investment bankers are Rothschild, Inc.; the auditors are Deloitte & Touche LLP; and the claims agent is Kurtzman Carson Consultants LLC. As of the petition date, the Debtors had consolidated assets of $657,215,757 and debts of $563,973,688. JPMorgan Chase Bank N.A., as administrative agent for the DIP lenders, is represented by lawyers at Richards, Layton & Finger, P.A., and Simpson Thacher & Bartlett LLP. J.P. Morgan Investment Management Inc., the DIP arranger, is represented by lawyers at Bayard, P.A., and Willkie Farr & Gallagher LLP. The U.S. Trustee appointed in the Chapter 11 case of Nebraska Book Co. an official creditors' committee composed of two indenture trustees and three trade suppliers. U.S. Bank NA and Bank of New York Mellon Trust Co. NA are the indenture trustees. The trade creditors include subsidiaries of jeans maker VF Corp. and publisher Reed Elsevier Group Plc. The committee selected Lowenstein Sandler LLP as lawyer. An ad hoc committee of holders of more than 50% of the Debtors' Second Lien Notes is represented by lawyers at Brown Rudnick. An ad hoc committee of holders of the Debtors' 8.625% unsecured notes are represented by Milbank, Tweed, Hadley & McCloy LLP. NEBRASKA BOOK: Can Hire Deloitte & Touche as Independent Auditors ----------------------------------------------------------------- The Hon. Peter J. Walsh U.S. Bankruptcy Court for the District of Delaware authorized Nebraska Book Company, Inc., et al., to employ Deloitte & Touche LLP as independent auditors. As reported in the Troubled Company Reporter on Sept. 1, 2011, Deloitte & Touche will perform a financial statement audit, including preparing a report, as described in PCAOB Statements on Auditing section 623.19.21 (a "Negative Assurance Report") as specified in the Engagement Letter, for the year ending March 31, 2011. In addition, the independent auditors will perform reviews of the Debtors' condensed interim financial information for each of the quarters in the year ending March 31, 2012. The Debtors agreed to pay Deloitte & Touche fees estimated to be $222,500, plus expenses. The hourly rates charged by Deloitte & Touche's professionals are: Partner, Principal, or Director $255 Senior Manager $210 Manager $190 Senior $140 Staff $115 Tax Specialists $200 Valuation Specialists $200 Deloitte & Touche provided prepetition services to the Debtors. The Debtors paid Deloitte & Touche approximately $104,500 in the 90 days prior to the Petition Date. The Debtors owed Deloitte & Touche approximately $75,000 as of the Petition Date, which amount Deloitte & Touche agrees to waive subject to and contingent upon the Court's approval of this application. An affiliate of Deloitte & Touche, Deloitte Tax LLP, has also provided prepetition tax services to the Debtors for which it is owed approximately $41,512. To the best of the Debtors' knowledge: (a) Deloitte & Touche is a "disinterested person" within the meaning of section 101(14) of the Bankruptcy Code,and does not hold or represent an interest adverse to the Debtors' estates; and (b) Deloitte & Touche has no connection to the Debtors, their creditors, or other significant parties as were identified by the Debtors and provided to Deloitte & Touche. About Nebraska Book Company Lincoln, Nebraska-based Nebraska Book Company, Inc., is one of the leading providers of new and used textbooks for college students in the United States. Nebraska Book and seven affiliates filed separate Chapter 11 petitions (Bankr. D. Del. Case Nos. 11-12002 to 11-12009) on June 27, 2011. Hon. Peter J. Walsh presides over the case. lawyers at Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP, serve as the Debtors' bankruptcy counsel. The Debtors; restructuring advisors are AlixPartners LLC; the investment bankers are Rothschild, Inc.; the auditors are Deloitte & Touche LLP; and the claims agent is Kurtzman Carson Consultants LLC. As of the Petition Date, the Debtors had consolidated assets of $657,215,757 and debts of $563,973,688. JPMorgan Chase Bank N.A., as administrative agent for the DIP lenders, is represented by lawyers at Richards, Layton & Finger, P.A., and Simpson Thacher & Bartlett LLP. J.P. Morgan Investment Management Inc., the DIP arranger, is represented by lawyers at Bayard, P.A., and Willkie Farr & Gallagher LLP. An ad hoc committee of holders of more than 50% of the Debtors' Second Lien Notes is represented by lawyers at Brown Rudnick. An ad hoc committee of holders of the Debtors' 8.625% unsecured notes are represented by Milbank, Tweed, Hadley & McCloy LLP. The Official Committee of Unsecured Creditors selected Lowenstein Sandler LLP and Stevens & Lee, P.C., as lawyers and Mesirow Financial Inc. as financial advisers. Nebraska Book has prepared a pre-packaged Chapter 11 plan that would swap some of the existing debt for new debt, cash and the new stock. NEBRASKA BOOK: Committee Can Hire Stevens & Lees as Co-Counsel -------------------------------------------------------------- The Hon. Peter J. Walsh U.S. Bankruptcy Court for the District of Delaware authorized the Official Committee of Unsecured Creditors in the Chapter 11 cases of Nebraska Book Company, Inc., et al., to retain Stevens & Lees, P.C. as co-counsel. As reported in the Troubled Company Reporter on Aug. 16, 2011, Steven & Lee as its co-counsel, will advise the Committee and represent it with respect to proposals and pleadings submitted by the Debtors or others to the Court. The firm's professionals and their compensation rates: Joseph H. Huston, Jr., shareholder $610 Maria Aprile Sawczuk, of counsel $425 Paralegal & legal Assistants $110 - $200 The Committee assured the Court that the firm is a "disinterested person" within the meaning of section 101(14) of the Bankruptcy Code. About Nebraska Book Company Lincoln, Nebraska-based Nebraska Book Company, Inc., is one of the leading providers of new and used textbooks for college students in the United States. Nebraska Book and seven affiliates filed separate Chapter 11 petitions (Bankr. D. Del. Case Nos. 11-12002 to 11-12009) on June 27, 2011. Hon. Peter J. Walsh presides over the case. Lawyers at Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP, serve as the Debtors' bankruptcy counsel. The Debtors; restructuring advisors are AlixPartners LLC; the investment bankers are Rothschild, Inc.; the auditors are Deloitte & Touche LLP; and the claims agent is Kurtzman Carson Consultants LLC. As of the petition date, the Debtors had consolidated assets of $657,215,757 and debts of $563,973,688. JPMorgan Chase Bank N.A., as administrative agent for the DIP lenders, is represented by lawyers at Richards, Layton & Finger, P.A., and Simpson Thacher & Bartlett LLP. J.P. Morgan Investment Management Inc., the DIP arranger, is represented by lawyers at Bayard, P.A., and Willkie Farr & Gallagher LLP. An ad hoc committee of holders of more than 50% of the Debtors' Second Lien Notes is represented by lawyers at Brown Rudnick. An ad hoc committee of holders of the Debtors' 8.625% unsecured notes are represented by Milbank, Tweed, Hadley & McCloy LLP. NEW HOPE: U.S. Trustee Wants Case Converted to Ch. 7 Liquidation ---------------------------------------------------------------- James Haggerty at The Times Tribune reports that Gregory Schiller, the U.S. trustee in the Chapter 11 bankruptcy of Scranton-based New Hope Personal Care Homes Inc., recently filed a motion to convert the case to Chapter 7 liquidation. According to the report, Mr. Schiller's action followed a state official's inspection revealing the presence of bed bugs and addiction-treatment patients preparing meals for residents at Pennswood Manor and an infestation of flies and a patient afflicted with an infectious skin ailment at Mountainside Manor. If the judge approves the conversion to a liquidation, Mr. Schiller wrote, the state can intervene to relocate residents of the two facilities to other licensed establishments, the report notes. U.S. Bankruptcy Judge Robert N. Opel has scheduled a hearing on the motion for Oct. 13, 2011. New Hope Personal Care Homes, Inc., formerly New Hope Home Health Care, Inc., operates Pennswood Manor on Cedar Avenue in Scranton, Pa., and Mountainside Manor in Dallas, Pa. New Hope filed a Chapter 11 petition (Bankr. M.D. Pa. Case No. 11- 04036) on June 1, 2011. The Debtor estimated assets and liabilities of $500,000 to $1 million. NEW JERSEY DEVILS: Missed Sept. 1 Loan Payment; Bankruptcy Looms ---------------------------------------------------------------- Josh Kosman, writing for The New York Post, reports that the New Jersey Devils missed its Sept. 1 loan payment, giving its lenders a breakaway chance to push the team into bankruptcy, a source with direct knowledge of the situation said. The report also said the team's financial hardships could also affect Newark's four-year-old Prudential Center, the Devils' home arena. Team-owned Devils Arena Entertainment operates the $375 million building and guarantees the Devils' loans and, therefore, is in danger of also going bankrupt. The Devils' principal owners are Jeff Vanderbeek and Ray Chambers, each of whom owns 47% of the franchise. According to the Post, Mr. Chambers, through his Brick City Hockey unit, has been trying to sell his non-controlling stake in the franchise for a year. The report further says the efforts of Mr. Chambers and Moag & Co., a Baltimore investment bank, have been unsuccessful, despite, a source said, cutting their asking price 20% to $200 million. Forbes estimated the Devils were worth $218 million, No. 11 in the league, down 2% from 2010. The team is ranked No. 25 in attendance. According to the Post, if the Devils, who along with the arena operation company, owe 15% more than the team is worth, according to Forbes, are declared bankrupt -- and one source speculates that has already happened -- lenders cannot repossess the team and force a sale for at least 180 days. The report relates the Devils' past-due loan payment of roughly $100 million is owed to a CIT-led lending group. Devils Arena Entertainment owes $180 million, the source said. Sources also told the Post the bank lenders want nothing to do with Mr. Vanderbeek, adding that they have been upset with how late they have been with financial information. The source said some lenders are already considering selling their stakes to vulture investors. The New Jersey Devils are a three-time champion in the National Hockey League. NEXITY FINANCIAL: U.S. Trustee Directed to Name Chapter 7 Trustee ----------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware directed the U.S. Trustee to appoint Chapter 7 trustee to oversee Nexity Financial Corporation's Chapter 7 bankruptcy case. As reported in the Troubled Company Reporter on June 6, 2011, the Debtor asked the Court to (i) convert its case to one under Chapter 7 of the Bankruptcy Code; and (ii) to direct the U.S. Trustee to appoint a Chapter 7 trustee. The Debtor submitted that conversion of the Chapter 11 case is appropriate given its inability to confirm the prepackaged plan. The Debtor adds that with the closing of Nexity Bank, the Debtor has no remaining ability to reorganize. Moreover, the Debtor does not believe that the value of its remaining funds is sufficient to fund the drafting and solicitation of a chapter 11 liquidating plan, or to make any distributions to creditors thereunder. About Nexity Financial Corporation Nexity Financial Corporation -- http://www.nexitybank.com/-- provides capital and support services for community banks. Its bank subsidiary, Nexity Bank, is operating under a cease and desist order issued by regulators. Birmingham, Alabama-based Nexity had net losses of $26 million in 2009 and $13 million in 2008. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 10-12293) on July 22, 2010. Drew G. Sloan, Esq.; Mark D. Collins, Esq.; and Michael Joseph Merchant, Esq., at Richards Layton & Finger, assist the Company in its restructuring effort. The Company estimated its assets and debts at $10 million to $50 million as of the Petition Date. The U.S. Trustee did not establish an Official Committee of Unsecured Creditors due to insufficient interest. NICHOLAS NARDUCCI: Seeks to Restructure Debts Under Bankruptcy -------------------------------------------------------------- Alisha A. Pina at the Providence Journal reports that City Councilman Nicholas J. Narducci Jr. is in bankruptcy proceedings, seeking to have his and his wife's debts, including their mortgage, restructured. According to the report, Mr. Narducci filed for Chapter 13 bankruptcy in February. He said Wednesday that his personal life is "nobody's business," but "I have problems just like everybody else. I'm not a rich person. I'm doing what I have to do to save my house and family." In their initial filing, the Mr. Narduccis listed debts totaling $242,731. The report says the Narduccis' combined annual income is nearly $105,000, with about $6,000 of monthly take home pay, court filings state. Nicholas Narducci's council compensation and salary from the Narragansett Bay Commission are listed as well as Valerie Narducci's wages from the Providence Water Supply Board. HSBC Finance Corp., the mortgage holder, objects to the change, stating the Narduccis have "failed to provide an appraisal" that proves $125,000 is fair market value. The land and the house, built in 1885, are assessed at $159,000. The report relates that the mortgage company also says the couple is behind nearly $31,000, including nine missed mortgage payments of $1,964, each from June 2010 to February 2011, and payments the company made to the city for taxes. The company started foreclosure in November 2010, and advertised the house to be auctioned on Valentine's Day, but the auction didn't take place. In the court filings, the Narduccis assert they are behind only $11,000 on their mortgage. Other than the mortgage, listed debts for the Narduccis include a $387 monthly car payment for their Hyundai, a $3,500 National Grid gas bill, a $300 cell-phone bill and a $6,238 bill for Kay Jewelers. Earlier filings also show the couple lost $3,500 this year to gambling. The report notes the trustee's current plan calls for the Narduccis to make $350 monthly payments to the court for 42 months. Nicholas Narducci said he is following the plan, and making the mortgage payments, while the principal modification is being considered. OPTI CANADA: Alberta Court Sanctions CCAA Master Plan ----------------------------------------------------- OPTI Canada Inc. announced Wednesday that the Court of Queen's Bench of Alberta has granted an order approving the Company's Master Plan pursuant to the Companies' Creditors Arrangement Act and the Canada Business Corporations Act. The Sanction Order was granted following a meeting of the holders of the Company's 7.875% and 8.25% senior secured notes due Dec. 15, 2014, held earlier Wednesday at which Second Lien Noteholders voted overwhelmingly in favor of a resolution to approve the Company's Master Plan. At the Noteholders' Meeting, the Master Plan was approved by a majority of Second Lien Noteholders, present in person or by proxy, who collectively hold 99.97% of the aggregate principal amount of outstanding Second Lien Notes that were voted at the meeting. The Company's Master Plan provides for the alternate implementation of either an Acquisition Plan or a Recapitalization Plan. Pursuant to the Acquisition Plan, all of the Second Lien Notes will be transferred and assigned by the Second Lien Noteholders to CNOOC International in exchange for a net cash payment of approximately US$1.179 billion, and all of the OPTI common shares held by OPTI shareholders will be transferred to CNOOC Luxembourg S.a r.l in exchange for a cash payment to such shareholders of US$0.12 per share. Under the Recapitalization Plan, OPTI would proceed with a capital reorganization in which, among other steps, the Second Lien Notes would be exchanged for new common shares of OPTI, the existing equity of OPTI would be canceled and existing shareholders would receive warrants exercisable for new common shares of OPTI. It is anticipated that the Acquisition Plan will become effective in the fourth quarter of 2011, following the receipt of all governmental and other approvals and after all other conditions to closing have been satisfied or waived. If the Acquisition Plan is not completed or is otherwise terminated, the Master Plan provides that OPTI will pursue the Recapitalization Plan. Sanction Order Following the Noteholders' Meeting, OPTI applied for and was granted the Sanction Order by the Court. The Sanction Order declares that each of the Master Plan, the Acquisition Plan and the Recapitalization Plan is approved and declared to be substantively and procedurally fair and reasonable to the Second Lien Noteholders and existing OPTI shareholders and is in the best interests of OPTI and all affected parties. The Sanction Order also authorizes and directs the Company to take all steps and actions necessary or appropriate to implement the terms of the Master Plan. About OPTI Canada OPTI Canada Inc. (TSXV: OPC) -- http://www.opticanada.com/-- is a Calgary, Alberta-based company focused on developing major oil sands projects in Canada. Its first project, the Long Lake Project, has a design capacity for 72,000 barrels per day (bbl/d), on a 100 percent basis, of SAGD (steam assisted gravity drainage) oil production integrated with an upgrading facility. The Upgrader uses the Company's proprietary OrCrude(TM) process, combined with commercially available hydrocracking and gasification. Through gasification, this configuration substantially reduces the exposure to and the need to purchase natural gas. On a 100 percent basis, the Project is designed to produce up to 58,500 bbl/d of products, primarily 39 degree API Premium Sweet Crude (PSC(TM)). Due to its premium characteristics, the Company expects PSC(TM) to sell at a price similar to West Texas Intermediate (WTI) crude oil. The Long Lake Project is a joint venture between OPTI and Nexen Inc. OPTI holds a 35 percent working interest in the joint venture. Nexen is the sole operator of the Project. On July 13, 2011, the Company announced that it had commenced a creditor protection proceeding (the CCAA Proceeding) in the Court under the CCAA. The transaction will be effected by way of a plan of reorganization, compromise and arrangement (the Master Plan) through concurrent proceedings under the Companies' Creditors Arrangement Act (the CCAA) and the Canada Business Corporations Act (the CBCA). The Company's balance sheet at June 30, 2011, showed C$3.99 billion in total assets, C$2.95 billion in total liabilities and C$1.04 billion in total equity. A full-text copy of the Company's interim financial statements is available for free at http://is.gd/eTKlF2 OTTILIO PROPERTIES: Has Until Sept. 16 to File Schedules -------------------------------------------------------- The Hon. Morris Stern of the U.S. Bankruptcy Court for the District of New Jersey extended until Sept. 16, 2011, Ottilio Properties, LLC's time to file the balance of its bankruptcy petition and schedules. Totowa, New Jersey-based Ottilio Properties, LLC, filed a Chapter 11 petition (Bankr. D.N.J. Case No. 11-34641) on Aug. 18, 2011, in Newark, New Jersey. Glenn R. Reiser, Esq., at LoFaro and Reiser, LLP, in Hackensack, New Jersey, serves as counsel to the Debtor. Ottilio Properties estimated as much as $50 million in assets and $10 million in liabilities as of the Chapter 11 filing. PALISADES MEDICAL: Moody's Affirms 'Ba2' Rating on $38.5-Mil. Debt ------------------------------------------------------------------ Moody's Investors Service has affirmed Palisades Medical Center's (PMC) Ba2 bond rating affecting $38.5 million of outstanding debt issued through the New Jersey Health Care Facilities Finance Authority (see RATED DEBT section at end of report). The outlook remains stable. SUMMARY RATING RATIONALE The affirmation of the Ba2 debt rating and stable outlook reflects Palisades' improved financial performance in fiscal year (FY) 2010 and through five months of FY 2011, growing outpatient volumes, and increase in absolute liquidity and liquidity metrics such as days cash on hand. These attributes are mitigated by Palisades' location in the highly competitive northern New Jersey market, its small size, and the upcoming reductions in Medicare and Medicaid rates for skilled nursing facilities. Historical financial performance has largely been supported by The Harborage, which is Palisades' 245-bed skilled nursing facility and part of the obligated group. STRENGTHS * Improvement in operating performance in FY 2010 with operating cash flow margin of 5.1% in FY 2010 compared to 4.7% in FY 2009; results through the first half of FY 2011 show continued improvement with operating cash flow margin of 7.8% compared to 6.6% in the comparable prior year period although Moody's notes that mid-year performance is usually higher than the full fiscal year; notwithstanding, Palisades' better performance is a departure from weaker historical performance and a key factor in Moody's revision of the outlook to stable from negative in Moody's September 2010 review * Modest increases in admissions over the last two years continuing in FY 2011 maintaining leading market share in its eight-town service area; improved outpatient volumes are driving the current 5% growth in net patient revenue growth through five months of FY 2011 over the prior year comparable period although Moody's expects revenue growth to flatten by year end given volume seasonality * Profitable nursing home, The Harborage, that is part of the obligated group and represents a high 82% of operating income for the system in FY 2010 * Improvement in unrestricted cash and investments to $32.2 million at fiscal year end (FYE) 2010, equating to improved 78 days cash on hand, and 71% cash-to-debt, up from 61 days and 57% cash-to-debt at FYE 2009 * All fixed rate debt structure with no derivates CHALLENGES * Heavy reliance on government payors at the Harborage, with Medicare (18%) and Medicaid (66%) representing a high 84% of its payor mix; upcoming state Medicaid and federal Medicare rate reductions for skilled nursing facilities will pressure future operating performance for the system requiring management to seek efficiencies to mitigate the impact * Historical flat revenue growth at Palisades largely due to the high dependence on government payors (54% Medicare and 16% Medicaid); long-standing absence of a Blue Cross contract (largest commercial payor in northern New Jersey) at PMC places further limits on revenue and volume growth * Crowded and highly competitive northern New Jersey market with many providers in the primary and secondary service area; some of the nearby Hudson County hospitals have experienced challenging financial pressures and are partnering with for- profit providers which adds uncertainty into the market * Small provider with $156 million in combined revenues and under 10,000 admission making it vulnerable to external changes and physician departures * Large defined benefit pension obligation adds to the liabilities of the system; despite modifications to the structure, the projected benefit liability remains $25 million (71% funded ratio) DETAILED CREDIT DISCUSSION LEGAL SECURITY: Gross receipts pledge of the obligated group, comprised of Palisades Medical Center (PMC) and the Harborage (Palisades General Care, Inc.), an 245-bed long term care provider on its campus. A mortgage pledge on PMC and the Harborage is also provided as bondholder security as is a fully funded debt service reserve fund. Bond covenants require 60 days cash on hand and a 1.3 times rate covenant measured annually. All tests met in FY 2010. Moody's refers to the combined entities as "Palisades" in this report. INTEREST RATE DERIVATIVES: None RECENT DEVELOPMENTS/RESULTS In FY 2010, Palisades reported a year of improved, yet modest financial performance with breakeven operating income of $243 thousand (0.2% margin after reclassifying investment income to non-operating revenue) and operating cash flow of $7.9 million (5.1% margin). This represents an improvement over the operating loss of $841 thousand (-0.5% margin) and operating cash flow of $7.3 million (4.7% margin) reported in FY 2009 and was incorporated in Moody's revision of the outlook to stable from negative in Moody's September 2010 review. The improved financial performance was driven by increased charity care subsidy from the state, improved collections and slight growth in combined inpatient admission and observation stays (0.4%) contributing to a flat 0.4% growth in total operating revenue in FY 2010 over FY 2009. Expenses declined by 1.0% due to lower salary costs from FTE reductions in FY 2010 and supply expense savings. Furthermore in FY 2010, management Profitability of the system is mainly reliant on The Harborage, the nursing home attached to PMC that is part of the obligated group. Operating income at Harborage accounts for 82% of the operating income for the system in FY 2010, which decreased from 90% in FY 2009 as operating performance at the medical center improved. Through the first five months of FY 2011 ending May 31, 2011, Palisades recorded operating income of $2.1 million (3.0% margin) and operating cash flow of $5.3 million (7.8% margin). These results are improved compared to the same period in FY 2010, when Palisades recorded a 1.5% operating margin and 6.6% operating cash flow margin. Through May 2011, total operating revenue increased 4.5% over the same period in FY 2010, while expenses only increased 3.2%. Management attributes the improved performance to an additional $1.0 million in charity care subsidy from the state for FY 2011 and increases in outpatient surgery (6.5%), emergency room visits (5.9%), and slight increase in combined inpatient admissions and observation stays (0.6%). The hospital experiences some seasonality in volumes throughout the year and Palisades is budgeting performance in FY 2011 to be slightly above results in FY 2010 with 0.7% operating margin and 5.7% operating cash flow margin evidencing the seasonality. Despite the revenue growth reported in the first five months of FY 2011, PMC faces rate reductions from government payors at The Harborage putting pressure on the system to maintain current operating performance. The nursing home receives 66% of its revenues from Medicaid and 18% from Medicare. New Jersey is reducing Medicaid reimbursement to nursing homes and Medicare has reduced reimbursement to nursing homes by a material 13% in 2011. According to management the impact of State Medicaid cuts to Harborage will be breakeven while the reduction in Medicare rates will be approximately 9% at The Harborage, and nursing home management team will adjust appropriately to the reduction in revenue. Moody's expects The Harborage will have difficulty achieving the same margins it has in the past putting more pressure on the medical center to meet budgeted margins. The system's ability to navigate this decline in revenue will be a factor in future rating reviews. With the increased cash flow in FY 2010, PMC's debt service coverage improved keeping measures in line with Moody's 2009 Ba medians. Moody's adjusted debt-to-cash flow measured 5.1 times in FY 2010 compared 6.0 times in FY 2009 (Moody's 2010 Ba median is 5.1 times) and MADS coverage measured of 2.5 times compared to 2.3 times in FY 2009 (Moody's 2010 Ba median is 2.2 times). Coverage has further improved in five-months FY 2011, with debt-to-cash of 3.6 times and MADS coverage of 3.4 times although Moody's expects these to weaken given year end seasonality and management's expectation for year end results on par with FY 2010. At FYE 2010 (December 31, 2010), absolute unrestricted cash and investments improved to $32.2 million (78 days cash on hand), a 28% increase from FYE 2009. This growth is attributable to good returns on investments, three years of lower capital spending, and improved cash collections (days in accounts receivable was 40 at FYE 2010 from 44 days at FYE 2009). However, days in accounts payable was a high 103 days at FYE 2010, very unfavorable to the 2010 Moody's national median of 58 days and artificially inflating unrestricted cash. Management reduced days in accounts payable to 95 at May 31, 2011, and unrestricted cash and investments declined to $31.8 million or 75 days cash. Moody's expects modest absolute liquidity growth in the coming years as management endeavors to bring the measure to its goal of 75 days. Cash-to-debt measured 71% at FYE 2010, an improvement from 57% at FYE 2009 and closer to the Moody's 2010 Ba median of 76%. According to management, at FYE 2010 PMC's unrestricted cash and investment was 100% liquid on a monthly basis and allocated to approximately 40% cash and fixed income, 60% equities. PMC's sponsors a defined benefit pension plan, which was closed to new participants June 1, 2006. Effective January 1, 2010 the plan was further amended to freeze benefit accruals for 18 months. This temporary freeze reduced pension expense by 40% in FY 2010 and 47% in FY 2011. As a result, funding declined by a material $2.8 million in FY 2010 to $7.0 million from $9.8 million and the expected funding for FY 2011 is $5.5 million. Despite this material change, the pension liability remains $25 million, adding to the liabilities of the system and creating negative net assets. Cash-to-comprehensive debt (including short- and long-term debt and lease and pension liability) is 48%. The current debt structure is comprised of 100% fixed rate, mitigating immediate demands on the balance sheet. Capital spending at the medical center for FY 2011 is budgeted to be $1.2 million for mostly routine capital needs. Management spent $6 million in FY 2010 on information technology and expects to receive meaningful use funding at the end of FY 2011. Despite the increase in capital spending in FY 2010, spending was well below depreciation in fiscal years 2007, 2008, and 2009. At FYE 2010, PMC's average age of plant was 19 years, well above the Moody's 2010 national average of 10.3 years. Management has no new debt plans at this time. While financial performance has improved at the system, Moody's views PMC's small size and location in the highly competitive northern New Jersey market as credit challenges. With $156 million in revenue and under 10,000 admissions, PMC maintains 30% market share in its eight-town primary service area in Hudson County. There are numerous competing providers in both Hudson and nearby Bergen County, which has begun to see consolidation and increased physician employment. Some of the Hudson County providers have struggled financially in the past but are now finding capital and for-profit partners, potentially adding competitive challenges for the PMC. Likewise, Bergen County providers are employing more physicians which could affect area physician referral patterns, management states many of the newly employed physicians continue to refer to PMC. Furthermore, outmigration to New York City providers remains a challenge. PMC is the only provider in the area affiliated with New York Presbyterian Healthcare System, and although the medical center does not receive any financial support, this relationship benefits PMC with the brand, the medical service agreements allowing expanded services at the hospital, and participation in quality studies and protocols allowing PMC to benchmark itself to New York Presbyterian Healthcare System. Outlook The stable outlook reflects Moody's expectation that financial performance in FY 2011 will be consistent with FY 2010 and should provide adequate debt service coverage and further improve balance sheet metrics. Future rating action will depend on Palisades' ability to navigate the eminent revenue pressure at The Harborage and the changing competitive market. WHAT COULD MAKE THE RATING GO UP Sustained improvement in financial performance; continued volume growth leading to material revenue and market share growth; continued improvement in liquidity and debt ratios; no changes in the competitive environment of this market WHAT COULD MAKE THE RATING GO DOWN Decline in volumes and operating performance; downturn in performance at the Harborage; decline in liquidity; additional debt without commensurate increase in cash flow and liquidity; changes in the competitive landscape that negatively impact performance KEY INDICATORS Assumptions & Adjustments: - Based on financial statements for Palisades Medical Center, Inc. and Palisades General Care, Inc. - First number reflects audit year ended December 31, 2009 - Second number reflects audit year ended December 31, 2010 - Investment returns normalized at 6% unless otherwise noted - All investment returns restated as non-operating income - Moody's excludes supplemental retirement funds from cash calculations * Inpatient admissions: 9,425; 9,434 * Total operating revenues: $155.3 million; $155.9 million * Moody's-adjusted net revenue available for debt service: $6.4 million; $7.9 million * Total debt outstanding: $44.7 million; $45.2 million * Maximum annual debt service (MADS): $4.5 million; $4.5 million * MADS Coverage with reported investment income: 2.68 times; 2.64 times * Moody's-adjusted MADS Coverage with normalized investment income: 2.26 times; 2.53 times * Debt-to-cash flow: 6.0 times; 5.1 times * Days cash on hand: 61 days; 78 days * Cash-to-debt: 57%; 71% * Operating margin: -0.5%; 0.2% * Operating cash flow margin: 4.7%; 5.1% OUTSTANDING BONDS (as of December 31, 2010) - Series 1999: $11.1 million outstanding; Ba2 - Series 2002: $27.5 million outstanding; Ba2 PARKWOOD HOSPITALITY: Case Summary & 20 Largest Unsec Creditors --------------------------------------------------------------- Debtor: Parkwood Hospitality, LLC P.O. Box 1546 Duncan, OK 73533 Bankruptcy Case No.: 11-14863 Chapter 11 Petition Date: September 2, 2011 Court: United States Bankruptcy Court Western District of Oklahoma (Oklahoma City) Judge: T.M. Weaver Debtor's Counsel: Andrew R Chilson, Esq. Robert J. Haupt, Esq. PHILLIPS MURRAH PC Corporate Tower, Thirteenth Floor 101 N Robinson Ave Oklahoma City, OK 73102 Tel: (405) 235-4100 Fax: (405) 235-4133 E-mail: archilson@phillipsmurrah.com rjhaupt@phillipsmurrah.com Scheduled Assets: $3,752,641 Scheduled Debts: $14,888,516 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/okwb11-14863.pdf The petition was signed by Jagmohan Dhillon. PERKINS & MARIE: Files Schedules of Assets and Liabilities ---------------------------------------------------------- Perkins & Marie Callender's Inc. filed its schedules of assets and liabilities, and statements of financial affairs in the U.S. Bankruptcy Court for the District of Delaware, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $850,000 B. Personal Property $232,010,752 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $113,287,295 E. Creditors Holding Unsecured Priority Claims F. Creditors Holding Unsecured Non-priority Claims $222,464,984 ------------ ------------ TOTAL $232,860,752 $335,752,279 Debtor-affiliate, Marie Callender Pie Shops Inc., also filed its schedules, disclosing $22,251,617 in assets and $325,379,057 in liabilities. A full-text copy of the schedules of Perkin & Marie is available for free at: http://bankrupt.com/misc/PERKINS&MARIE_sal.pdf A full-text copy of the schedules of Marie Callender is available for free at http://bankrupt.com/misc/PERKINS&MARIE_mariecallender_sal.pdf About Perkins & Marie Callender's Based in Memphis, Tennessee, Perkins & Marie Callender's Inc., fka The Restaurant Company, is the owner or franchiser of nearly 600 family-dining restaurants, the Perkins Restaurants and Marie Callender's. Perkins & Marie and several affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 11-11795) on June 13, 2011. Perkins & Marie disclosed $290 million in assets and $441 million in debt as of the Chapter 11 filing. Judge Kevin Gross presides over the case. Robert S. Brady, Esq., and Robert F. Poppiti, Jr., Esq., at Young, Conaway, Stargatt & Taylor, LLP; and Mitchel H. Perkiel, Esq., Hollace T. Cohen, Esq., and Brett D. Goodman, Esq., at Troutman Sanders, LLP, serve as bankruptcy counsel. The Debtors' financial advisors are Whitby, Santarlasci & Company. Their claims agent is Omni Management Group, LLC. Deloitte Tax LLPserves as tax services provider. DIP lender Wells Fargo is represented by lawyers at Paul, Hastings, Janofsky & Walker LLP. Roberta A. Deangelis, U.S. Trustee for Region 3, appointed seven unsecured creditors to serve on the Official Committee of Unsecured Creditors in the Debtors' cases. Ropes & Gray LLP represents the Committee. PERKINS & MARIE: Lender Counsel Paul Hastings Changes Firm Name --------------------------------------------------------------- Counsel for Perkins & Marie Callender's Inc.'s DIP lender Wells Fargo Capital Finance, LLC has notified parties-in-interest that it has changed its name from Paul, Hastings, Janofsky & Walker LLP to Paul Hastings LLP. About Perkins & Marie Based in Memphis, Tennessee, Perkins & Marie Callender's Inc., fka The Restaurant Company, is the owner or franchiser of nearly 600 family-dining restaurants, the Perkins Restaurants and Marie Callender's. Perkins & Marie and several affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 11-11795) on June 13, 2011. Perkins & Marie disclosed $290 million in assets and $441 million in debt as of the Chapter 11 filing. Judge Kevin Gross presides over the case. Robert S. Brady, Esq., and Robert F. Poppiti, Jr., Esq., at Young, Conaway, Stargatt & Taylor, LLP; and Mitchel H. Perkiel, Esq., Hollace T. Cohen, Esq., and Brett D. Goodman, Esq., at Troutman Sanders, LLP, serve as bankruptcy counsel. The Debtors' financial advisors are Whitby, Santarlasci & Company. Their claims agent is Omni Management Group, LLC. Deloitte Tax LLPserves as tax services provider. DIP lender Wells Fargo is represented by lawyers at Paul, Hastings, Janofsky & Walker LLP. Roberta A. Deangelis, U.S. Trustee for Region 3, appointed seven unsecured creditors to serve on the Official Committee of Unsecured Creditors in the Debtors' cases. Ropes & Gray LLP represents the Committee. PETER BORLO: Dist. Ct. Dismisses Suit v. Navy Federal Credit Union ------------------------------------------------------------------ District Judge Deborah K. Chasanow dismissed Peter A. Borlo, v. Navy Federal Credit Union, Civil Action No. DKC 11-1168 (D. Md.), at the defendant's behest. Mr. Borlo filed a complaint against Navy Federal in the Circuit Court for Montgomery County, Maryland, on Jan. 7, 2011. After service, Navy Federal timely removed to the District Court on the basis of diversity of citizenship. The complaint contains two counts: one for negligence and one for damage to credit and credit standing. A copy of Judge Chasanow's Sept. 2, 2011 Memorandum Opinion is available at http://is.gd/L3OEokfrom Leagle.com. Peter A. Borlo is a resident of Maryland. In October 2005, Mr. Borlo was hired by a company called The Manhattan Group, Inc., which was owned by Darryl S. Paxton. At some point before November 2006, Messrs. Borlo and Paxton entered into a separate business venture together. They formed a limited liability company called 12th Street Venture to acquire certain real property, refurbish and renovate it, and sell it for a profit. Mr. Paxton persuaded Borlo to take out a loan solely in Mr. Borlo's name to carry out their business plan. After purchasing the property, however, Mr. Paxton did not carry out any of their refurbishment or renovation plans. Without improvements, the property never sold, and Mr. Borlo was eventually unable to continue making payments on the loan. PHILADELPHIA ORCHESTRA: Mediation on Union Matters Begins Sept. 15 ------------------------------------------------------------------ The Hon. Eric L. Frank of the U.S. Bankruptcy Court for the Eastern District of Pennsylvania directed The Philadelphia Orchestra Association, Academy of Music of Philadelphia, Inc., and AFM Local 77, to attend a mediation before the Hon. Stephen Raslavich, chief judge. The mediation will commence at 1:00 p.m. on Sept. 15, 2011, and, if appropriate, continue until Sept. 16, 2011. The parties entered into a stipulation providing for: -- a court-annexed mediation program in connection with their efforts to reach a successor collective bargaining agreement; -- subject to the ratification by the Musicians, the collective bargaining agreement expiration date will be extended from its current expiration date of Nov. 18, 2011, to Dec. 2, 2011. -- the hearing on the petition under Section 1113 will commence during the week of Oct. 3, 2011, or not less than 14 days after the filing of the motion if it is filed later than Sept. 19, and -- the labor will not file any new unfair labor practice charges, amendments, or allegations with NLRB between the execution of the mediation agreement and the conclusion of the mediation. The Court also ordered that unless otherwise instructed by the mediator, the parties are ordered to comply with the provisions of Local Bankruptcy Rule 9019-3, including submission of a confidential mediation report by each party, which will be delivered to the mediator's chambers no later than 1:00 p.m. on Sept. 13, 2011. About the Philadelphia Orchestra The Philadelphia Orchestra -- http://www.philorch.org/-- claims to be among the world's leading orchestras. Bloomberg News says the orchestra became the first major U.S. symphony to file for bankruptcy protection, surprising the music world. Previous conductors include Fritz Scheel (1900-07), Carl Pohlig (1907-12), Leopold Stokowski (1912-41), Eugene Ormandy (1936-80), Riccardo Muti (1980-92), Wolfgang Sawallisch (1993-2003), and Christoph Eschenbach (2003-08). Charles Dutoit is currently chief conductor, and Yannick Nezet-Seguin has assumed the title of music director designate until he takes up the baton as The Philadelphia Orchestra's next music director in 2012. The Philadelphia Orchestra Association, The Academy of Music of Philadelphia, Inc., and Encore Series, Inc., filed separate Chapter 11 petitions (Bankr. E.D. Pa. Case Nos. 11-13098 to 11-13100) on April 16, 2011. Judge Eric L. Frank presides over the case. The Philadelphia Orchestra Association is being advised by Dilworth Paxson LLP, its legal counsel, and Alvarez & Marsal, its financial advisor. Curley, Hessinger & Johnsrud serves as its special counsel. In its petition, Philadelphia Orchestra estimated $10 million to $50 million in assets and debts. Encore Series, Inc., tapped EisnerAmper LLP as accountants and financial advisors. Roberta A. DeAngelis, the U.S. Trustee for Region 3, appointed seven members to the official committee of unsecured creditors in the Debtors' case. Reed Smith LLP serves as the Committee's counsel. The orchestra at the start of the Chapter 11 case said it needed relief from pension obligations, a new lease with the Kimmel Center where it performs, and a new union contract with musicians. PICHI'S INC: Chapter 11 Case Now Assigned to Hon. Edward A. Godoy ----------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Puerto Rico notified the creditors and parties-in-interest that it has reassigned to the Hon. Edward A. Godoy the Chapter 11 case of Pichi's Inc. The case was previously assigned to Hon. Mildred Caban Flores. Pichi's Inc. owns and operates the Best Western Pichi's Hotel in Guayanilla, Puerto Rico. Pichi's filed for Chapter 11 bankruptcy (Bankr. D. P.R. Case No. 11-06583) on Aug. 3, 2011. Judge Mildred Caban Flores presides over the case. Charles Alfred Cuprill, PSC Law Offices, serves as the Debtor's bankruptcy counsel. CPA Luis R. Carrasquillo & Co., P.S.C., serves as financial consultants. In its petition, the Debtor estimated US$10 million to US$50 million in both assets and debts. The petition was signed by Luis A. Emmanuelli Gonzalez, president. PICHI'S INC: Charles A. Cuprill Approved as Bankruptcy Counsel -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Puerto Rico, in a Sept. 1, 2011, order, authorized Pichi's Inc. to employ Charles A. Cuprill, PSC Law Offices as counsel. As reported in the Troubled Company Reporter on Aug. 18, 2011, the Debtor has paid the firm $22,4000 as retainer. The firm charges $350 per hour for Charles A. Cuprill-Hernandez, Esq.; $225 an hour for senior associates; $150 an hour for junior associations; and $75 for paralegals. Mr. Cuprill-Hernandez, Esq., disclosed that his firm has represented a Pichi's creditor, the Puerto Rico Tourism Development Fund in the bankruptcy case styled In re Palmas Country Club, Inc., Case No. 10-07072 (SEK). Another creditor, V. Suarez & Co., is a shareholder of Cuprill's client, Procesadora Campofresco, Inc. Notwithstanding, Mr. Cuprill-Hernandez, attested that his firm is a disinterested person as defined in Sec. 101(14) of the Bankruptcy Code. On Sept. 5, Myrna L. Ruiz-Olmo, Esq. (mruizolmo@cuprill.com) notified the Court that she has withdrawn as counsel of record to the Debtor. Attorney Charles A. Cuprill-Hernandez will continue representing Debtor in this matter. Ms. Ruiz-Olmo also requested that her name be removed from all filings and notices henceforth. About Pichi's Inc. Pichi's Inc. owns and operates the Best Western Pichi's Hotel in Guayanilla, Puerto Rico. Pichi's filed for Chapter 11 bankruptcy (Bankr. D. P.R. Case No. 11-06583) on Aug. 3, 2011. Judge Mildred Caban Flores presides over the case. Charles Alfred Cuprill, PSC Law Offices, serves as the Debtor's bankruptcy counsel. CPA Luis R. Carrasquillo & Co., P.S.C., serves as financial consultants. In its petition, the Debtor estimated US$10 million to US$50 million in both assets and debts. The petition was signed by Luis A. Emmanuelli Gonzalez, president. PICHI'S INC: Can Hire Luis R. Carrasquillo as Financial Consultant ------------------------------------------------------------------ The Hon. Mildred Caban Flores of the U.S. Bankruptcy Court for the District of Puerto Rico authorized Pichi's Inc. to employ CPA Luis R. Carrasquillo & Co., PSC as financial consultant. As reported in the Troubled Company Reporter on Aug. 18, 2011, the financial consultant will assist its management in the financial restructuring of its affairs by providing advice in strategic planning and the preparation of the Debtor's plan of reorganization, disclosure statement and business plan, and participating in the Debtor's negotiations with creditors. The Debtor has paid Carrasquillo a $20,000 retainer. The firm's partner, CPA Luis R. Carrasquillo, charges $160 an hour for his work. Senior CPA Marcelo Gutierrez charges $125 an hour. Other CPAs bill $90 to $125 an hour. Carrasquillo has acted as financial consultant in other bankruptcy cases in which Charles A. Cuprill, Esq., the Debtor's counsel, has or is representing debtors. V. Suarez & Co., a Pichi's creditor, is a shareholder of Procesadora Campofresca, Inc., a client of Carrasquillo. Notwithstanding, Carrasquillo is a disinterested person as defined in Sec. 101(14) of the Bankruptcy Code. About Pichi's Inc. Pichi's Inc. owns and operates the Best Western Pichi's Hotel in Guayanilla, Puerto Rico. Pichi's filed for Chapter 11 bankruptcy (Bankr. D. P.R. Case No. 11-06583) on Aug. 3, 2011. Judge Mildred Caban Flores presides over the case. Charles Alfred Cuprill, PSC Law Offices, serves as the Debtor's bankruptcy counsel. CPA Luis R. Carrasquillo & Co., P.S.C., serves as financial consultants. In its petition, the Debtor estimated US$10 million to US$50 million in both assets and debts. The petition was signed by Luis A. Emmanuelli Gonzalez, president. PICHI'S INC: Taps Manuel A. Nunez for Labor Relations Matters ------------------------------------------------------------- Pichi's Inc. asks the U.S. Bankruptcy Court for the District of Puerto Rico for permission to employ Manuel A. Nunez, Esq., as special counsel. The Debtor relates that prior to the Petition date, it has engaged the services of Manuel A. Nunez Law Offices as its counsel in labor law matters on an ongoing basis, including employees and union related matters, assessment and legal opinions on wage and hour issues as well as union contracts, workmen's compensation, employment issues both under local and federal labor laws, ongoing bargaining with union as to over six bargaining units and appearances on behalf of Debtor before governmental agencies for administrative investigations of non-judicial well as adjudicative nature, including the National Labor Relations Board. The firm's personnel hourly rates are: Principal Attorneys $200 Associates $175 Junior Associates $150 To the best of the Debtor's knowledge, the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: MANUEL A. NUNEZ LAW OFFICES PMB 157 No. 1357 Ave. Ashford, Suite 2 Condado, San Juan, P.R. 00907 Tel: (787) 753-6530 Fax: (787) 753-6597 E-mail: mnunez@mnlawpr.com. About Pichi's Inc. Pichi's Inc. owns and operates the Best Western Pichi's Hotel in Guayanilla, Puerto Rico. Pichi's filed for Chapter 11 bankruptcy (Bankr. D. P.R. Case No. 11-06583) on Aug. 3, 2011. Judge Mildred Caban Flores presides over the case. Charles Alfred Cuprill, PSC Law Offices, serves as the Debtor's bankruptcy counsel. CPA Luis R. Carrasquillo & Co., P.S.C., serves as financial consultants. In its petition, the Debtor estimated US$10 million to US$50 million in both assets and debts. The petition was signed by Luis A. Emmanuelli Gonzalez, president. PREMIER GOLF: Creditor Says Vance's Retention is Not Plan Related ----------------------------------------------------------------- Creditor Far East National Bank asks the U.S. Bankruptcy Court Southern District of California to deny Premier Golf Properties, LP's request to employ Lee Perry Vance of Vance and Associates as a land planning firm. As reported in the Troubled Company Reporter on Sept. 7, 2011, the firm's employment will be in connection with land planning events necessary in connection with the Debtor's (1) visual upgrades and course improvement; (2) mineral extraction (sand); (3) Wetlands mitigation credits; and (4) infrastructure and construction of land improvements in Debtor's raw land at Willow Glen side. Prior to the Debtor's filing of bankruptcy, Mr. Vance was paid for services rendered prepetition a sum aggregating $16,728. The Debtor intended to pay Mr. Vance on an hourly basis, with a retroactive effect from the May 2, 2011 Petition Date. Accordingly, Mr. Vance has accrued for the services rendered from May 2, through May 31, 2011, $3,668, and for services rendered from June 1 through June 30, 2011, $3,382. The Debtor noted that Mr. Vance has not been yet compensated for his services, until approval with retroactive effect to May 2, 2011. Mr. Vance normal and usual billing rate is $125 per hour. According to the creditor, Vance's previous and proposed continued services to the Debtor have no relationship to the Debtor's proposed plan. Rather, the creditor states, that they are in furtherance of Debtor's original and continued undisclosed real plan for the Debtor's assets, the development of high end residential properties, including for senior citizens, on a portion of Debtor's real property secured by FENB's deed of trust. The creditor notes that the Debtor does not include that real plan in its proposed First Amended Disclosure Statement or in its First Amended Plan of Reorganization. Current market conditions do not support the construction of residential development on the Debtor's property and no projection of the residential market at anytime during the proposed plan period supports such development. The proposed residential development, the creditor adds, is in violation of the current General Plan for the property and contravenes existing zoning. The Court will convene a hearing on Sept. 19, at 2:30 p.m., to consider the Debtor's request to employ Vance. Far East Bank is represented by: Richard J. Frick, Esq. Ralph Ascher, Esq. Richard Vergel de Dios, Esq. FRICK PICKETT & MCDONALD LLP 11022 Acacia Parkway, Suite D Garden Grove, CA 92840 Tel: (714) 638-4300 Fax: (714) 638-4311 E-mail: rfrick@fpmlaw.com rascher@fpmlaw.com rvergeldedios@fpmlaw.com About Premier Golf Properties, LP El Cajon, California-based, Premier Golf Properties, LP dba Cottonwood Golf Club filed for Chapter 11 protection (Bankr. S.D. Calif. Case No. 11-07388) on May 2, 2011. Peter W. Bowie is presiding the case. Jack F. Fitzmaurice, Esq., at Fitzmaurice & Demergian represents the Debtor. The Debtor estimated assets and liabilities at $10 million to $50 million. PREMIER TRAILER: DIP Loan, Cash Collateral Hearing Set for Oct. 3 ----------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware will convene a hearing on Oct. 3, 2011, at 10:00 a.m., to consider PTL Holdings LLC and Premier Trailer Leasing Inc.'s request for authorization to: -- incur postpetition secured indebtedness with priority over all secured indebtedness and with administrative superpriority; -- use of cash collateral and provide adequate protection; and -- modify the automatic stay. Objections, if any, are due by Sept. 23, 2011. The Debtors won interim authority to (a) incur postpetition, priming secured financing in the principal amount of up to $1,500,000 from Garrison Loan Agency Services LLC, as administrative agent, as an extension of the Debtors' existing working capital secured financing, without any roll-up of prepetition debt, (b) use cash collateral in which the Debtors' prepetition lenders may have an interest, and (c) provide adequate protection to the lenders. The DIP Loan proceeds may be used to (a) pay interest, costs, and expenses incurred with respect to the DIP Obligations, and (b) finance ongoing general working capital needs of the Debtors, including, but not limited to chapter 11 professional fees and expenses. The interest rate for the DIP Obligations will be the existing variable rate for Base Rate Loans under the First Lien Credit Agreement, which is currently 5.75% per annum. The DIP Loan matures (i) Oct. 7, 2011, (ii) on the failure of the Debtors to obtain a Final Order on or before the date which is 30 days after the Petition Date, (iii) the effective date of a plan of reorganization, or (iv) the occurrence of an event of default under the First Lien Credit Agreement. The DIP Obligations will secured by first priority priming liens against all assets of the Debtors and their estates pursuant to sections 364(c)(2), 364(c)(3) and 364(d)(1) of the Bankruptcy Code, subject to the carve-out and excluding avoidance actions and related proceeds. The DIP Obligations also shall be treated as superpriority administrative expense claims pursuant to section 364(c)(1) of the Bankruptcy Code. The carve-out consists of (a) quarterly fees required to be paid pursuant to 28 U.S.C. Sec. 1930(a)(6), together with interest payable thereon pursuant to applicable law and any fees payable to the Clerk of the Bankruptcy Court; (b) allowed fees and expenses of attorneys, accountants, financial advisors, consultants and other professionals employed by the Debtors and any official committees of creditors pursuant to Sections 327 and 1103 of the Bankruptcy Code accrued through the DIP Commitment Termination Date, and up to the amount of $25,000 accrued thereafter. As of the Petition Date, the Debtors had $110 million of outstanding indebtedness on a consolidated basis, consisting of (a) $83 million under a senior secured, revolving credit facility, and (b) $27 million under a second lien term loan. The First Lien Agent, on behalf of the First Lien Lenders, has consented to the Debtors' use of Cash Collateral. The First Lien Lenders are affiliates of the First Lien Agent, GOF II NON RE LO LLC, GOF II NON RE LO Series B LLC, GOF Class A and B LLC, GOF Class C LLC, Fairchild Offshore Master Fund L.P., and Fairchild Offshore Master Fund II L.P. The Debtors' ability to use Cash Collateral will end on the DIP Commitment Termination Date. The parties with an interest in the Cash Collateral are: (i) the First Lien Agent, for the benefit of the First Lien Lenders, and (ii) Fifth Street Mezzanine Partners III, L.P., as agent to the Second Lien Lenders. The Debtors believe that the value of their property that is secured by the lien of the First Lien Agent is less than the amount of the aggregate obligations owed to the First Lien Lenders and, accordingly, the Second Lien Lenders have only an unsecured claim against the Debtors' estates. The Debtors propose, however, to provide the same adequate protection to the Second Lien Lenders that is being provided to the First Lien Lenders on account of their prepetition obligations, junior in all respects to the rights, protections and claims of the First Lien Lenders, including the DIP Obligations, and without prejudice to the Debtors' rights to seek to modify the adequate protection granted to the Second Lien Lenders. About Premier Trailer Leasing Founded in 2005, PTL Holdings LLC and Premier Trailer Leasing, Inc., provide semi-trailer rentals, specializing in road-ready semi-vans and flatbeds for the mid-market segment of the transportation industry. Headquartered in Grapevine, Texas, they operate their business out of 19 branches in 15 different states in the United States. PTL Holdings and Premier sought bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12676) on Aug. 23, 2011. Brendan Linehan Shannon presides over the case. Pachulski Stang Ziehl & Jones LLP serves as the Debtors' bankruptcy counsel. Kurtzman Carson Consultants, LLC, serves as claims and noticing agent. PTL Holdings estimated $100 million to $500 million in assets and debts. The petitions were signed by Scott J. Nelson, chief executive officer. Garrison Loan Agency Services LLC, the administrative agent under the First Lien Credit Agreement, is represented by Proskauer Rose LLP. Second lien lender Fifth Street Mezzanine Partners III, L.P., is represented by Young Conaway Stargatt & Taylor LLP and Kramer Levin Naftalis & Frankel LLP. On the Petition Date, the Debtors filed a Prepackaged Plan. The primary purpose of the Plan is to effectuate the restructuring and substantial de-leveraging of the Debtors' capital structure in order to bring it into alignment with the Debtors' present and future operating prospects and to provide the Debtors with greater liquidity. The Plan gives the First Lien Lenders, owed $84 million, 100% of the equity of reorganized Premier in exchange for the discharge of obligations owed under the First Lien Credit Agreement. Holders of Second Lien Credit Agreement Claims, worth $27,100,000, and holders of general unsecured claims, worth $550,000, will get nothing. PREMIER TRAILER: Wants More Time to File Schedules -------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware will convene a hearing on Oct. 3, 2011, at 10:00 a.m., to consider PTL Holdings LLC and Premier Trailer Leasing LLC's request to: -- grant them an additional 30 days to file their schedules of assets and liabilities and statements of financial affairs beyond the automatic 30-day extension granted under Rule 1007-1(b) of the Local Rules of Bankruptcy Practice and Procedure of the U.S. Bankruptcy Court for the District of Delaware, without prejudice to the Debtors' right to seek a further extension for cause shown, -- waive the requirement to file the Schedules and Statements if the Debtors confirm their Prepackaged Joint Chapter 11 Plan of Reorganization and the Plan becomes effective prior to the expiration of the extension; and -- direct the Office of the United States Trustee not to convene a meeting of creditors or equity security holders in the Debtor's chapter 11 cases. Objections, if any, are due by Sept. 23. As reported in the Troubled Company Reporter on Sept. 1, 2011, an extension would give the Debtors a total of 60 days from the Petition Date to file their schedules and statements. Inasmuch as the Debtors anticipate that the chapter 11 cases will be of a short duration, the Debtors seek to have the deadline to file their schedules and statements extended. The Debtors do not intend to file a motion to establish a claims bar date because their proposed restructuring does not provide for the payment of any amounts to holders of general unsecured claims. About Premier Trailer Leasing Founded in 2005, PTL Holdings LLC and Premier Trailer Leasing, Inc., provide semi-trailer rentals, specializing in road-ready semi-vans and flatbeds for the mid-market segment of the transportation industry. Headquartered in Grapevine, Texas, they operate their business out of 19 branches in 15 different states in the United States. PTL Holdings and Premier sought bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12676) on Aug. 23, 2011. Brendan Linehan Shannon presides over the case. Pachulski Stang Ziehl & Jones LLP serves as the Debtors' bankruptcy counsel. Kurtzman Carson Consultants, LLC, serves as claims and noticing agent. PTL Holdings estimated $100 million to $500 million in assets and debts. The petitions were signed by Scott J. Nelson, chief executive officer. Garrison Loan Agency Services LLC, the administrative agent under the First Lien Credit Agreement, is represented by Proskauer Rose LLP. Second lien lender Fifth Street Mezzanine Partners III, L.P., is represented by Young Conaway Stargatt & Taylor LLP and Kramer Levin Naftalis & Frankel LLP. On the Petition Date, the Debtors filed a Prepackaged Plan. The primary purpose of the Plan is to effectuate the restructuring and substantial de-leveraging of the Debtors' capital structure in order to bring it into alignment with the Debtors' present and future operating prospects and to provide the Debtors with greater liquidity. The Plan gives the First Lien Lenders, owed $84 million, 100% of the equity of reorganized Premier in exchange for the discharge of obligations owed under the First Lien Credit Agreement. Holders of Second Lien Credit Agreement Claims, worth $27,100,000, and holders of general unsecured claims, worth $550,000, will get nothing. PRESIDENTIAL REALTY: Receives Delisting Notice From NYSE AMEX ------------------------------------------------------------- Presidential Realty Corporation disclosed that by letter dated September 6, 2011, it had received notice from the staff of the NYSE Amex LLC of the intent of the Exchange to strike the Class B common stock of the Company from the Exchange by filing a delisting application with the Securities and Exchange Commission (the "SEC") pursuant to Section 1009(d) of the NYSE Amex LLC Company Guide. On June 17, 2011, the Company received a letter from that Exchange that the Company is not in compliance with the Exchange's continued listing standard set forth in Section 1003(a)(iii) of the Exchange's Company Guide due to having stockholders' equity of less than $6,000,000 at March 31, 2011 and losses from continuing operations in its five most recent fiscal years ended December 31, 2010. In accordance with the Company Guide, the Company submitted a plan of compliance on July 13, 2011, and provided supplemental updates on August 4, 22 and 23, 2011. After review of the plan of compliance, the Exchange Staff stated in the Notice that the Company "does not make a reasonable demonstration in the Plan of its ability to regain compliance with Section 1003(a)(iii)." After careful consideration of its alternatives, the Company has determined not to appeal the Exchange's decision to delist its Class B common stock. Therefore, on September 13, 2011, the Exchange's determination will become final. The Exchange will then suspend trading in the Company's Class B common stock and submit an application to the SEC to strike the Company's common stock from listing on the Exchange and registration under Section 12(b) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company will then be deemed registered under Section 12(g) of the Exchange Act and will continue to file periodic and other reports pursuant to the requirements of the Exchange Act. As the Company has not entered into any strategic transaction, it intends to move forward with completing its plan of liquidation. After the Company's Class B common stock is delisted, the Company cannot predict whether any trading market, including any over-the- counter trading market, for the Company's Class B common stock will develop or be sustained. The Company's Class A common stock currently trades in the over-the-counter market under the symbol PDNLA. About Presidential Realty Presidential Realty Corporation, a real estate investment trust, is engaged principally in the ownership of income-producing real estate and in the holding of notes and mortgages secured by real estate or interests in real estate. On January 20, 2011, Presidential stockholders approved a plan of liquidation, which provides for the sale of all of the Company's assets over time and the distribution of the net proceeds of sale to the stockholders after satisfaction of the Company's liabilities. PURSELL HOLDINGS: Lawson Bank Withdraws Motion for Stay Relief -------------------------------------------------------------- Creditor Lawson Bank notified the U.S. States Bankruptcy Court for the Western District of Missouri that it has withdrawn its amended motion for relief from stay, alternative motion for adequate protection against Pursell Holdings, LLC, which was filed on May 31, 2011. As reported in the Troubled Company Reporter on July 13, 2011, Lawson Bank requested that the Court lift the automatic stay to condition the use or sale of the collateral or for adequate protection payments. Lawson Bank asserted that cause exists for termination of the automatic stay because, among other things: a. it lacks adequate protection for repayment; b. the equity in the property does not adequately protect Lawson Bank unless or until the property is sold, making liquidation of the collateral necessary to protect the creditor's debt; and c. the Debtor's failure to make its contracted monthly payments harms the subordinate and unsecured creditors by shifting any remaining equity to service the secured debt; Any delay in making payments to creditor harms the subordinate and unsecured creditors. In the alternative, Lawson Bank sought adequate protection from the Debtor in the form of the sums which have come due under the loan agreements, curing the arrearage or failed payments, monthly payments which are required under the terms of the loan documents will adequately protect the Creditor for repayment of the loan and use of its money, and for the use of the collateral after the filing of this Motion, and to compensate Creditor for the interest accruing on the debt and the depreciation of the collateral from the Debtor's use. Lawson Bank is represented by: LAW OFFICES OF JAMES A. KESSINGER, LC James A. Kessinger, Esq. 200 NW Englewood Road, Suite B Kansas City, Missouri 64118 Tel: (816) 436-0707 Fax: (816) 436-1380 About Pursell Holdings Liberty, Missouri-based Pursell Holdings, LLC, filed for Chapter 11 bankruptcy protection (Bankr. W.D. Mo. Case No. 11-40999) on March 10, 2011. Frank Wendt, Esq., Brown & Ruprecht, P.C., serves as the Debtor's bankruptcy counsel. In its schedules, the Debtor disclosed $12,204,248 in assets and $23,382,741 in debts. Affiliate Damon Pursell Construction Company filed a separate Chapter 11 petition (Bankr. W.D. Mo. Case No. 10-44965) on Sept. 15, 2010. The U.S. Trustee said that a committee under 11 U.S.C. Sec. 1102 has not been appointed because an insufficient number of persons holding unsecured claims against Pursell Holdings LLC have expressed interest in serving on a committee. The U.S. Trustee reserves the right to appoint such a committee should interest develop among the creditors. QUANTUM FUEL: SPI to Buy 100% of Zephyr Shares for C$2.5 Million ---------------------------------------------------------------- Schneider Power Inc., a wholly owned subsidiary of Quantum Fuel Systems Technologies Worldwide Inc., on Aug. 24, 2011, entered into a purchase and sale agreement with Green Breeze Energy Inc. for the purchase by SPI of 100% of the shares of Zephyr Wind Farms Limited for a purchase price of C$2,500,000. Zephyr is the owner of a 10 MW wind power generation project located in Ontario, Canada, known as the Brooke-Alvinston Wind Project. Zephyr and Samsung Heavy Industries Co., Ltd., are parties to a C$22.7 million construction loan credit facility which, subject to Samsung's consent to the transaction, will remain in place after the closing of the transaction. The proceeds of the Samsung Financing are expected to finance 100% of the Project's construction costs. The Purchase Price is payable in cash as follows: (i) C$800,000 on the Closing Date and (ii) the balance payable in four installments upon the Project's achievement of certain milestones. The Purchase Price is subject to downward adjustment not to exceed C$500,000 if the construction costs for the Project exceed CDN $7.0 million, excluding the cost of the wind turbines and certain other Project costs such as management fees, real property lease costs, refundable deposits and depreciation and amortization. SPI's payment of the Purchase Price will be secured by a pledge of all of the shares of Zephyr. At closing, SPI will provide a limited recourse guaranty to Samsung to secure Zephyr's obligations to Samsung under the Samnsung Financing. The Agreement provides that the closing must occur by Sept. 30, 2011, unless otherwise agreed by the parties. The closing is subject to the parties' satisfaction or waiver of certain closing conditions including, without limitation, approval by each party's board of directors or shareholders, as applicable, approval by and consent from the Company's senior secured lender, approval by and consent from Samsung, and no material adverse change in Zephyr's business or the Project. There can be no assurance that all of the closing conditions will be satisfied or otherwise waived. A full-text copy of the Purchase and Sale Agreement is available for free at http://is.gd/1NTeOm 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. QUANTUM FUEL: To Offer $75 Million of Securities ------------------------------------------------ Quantum Fuel Systems Technologies Worldwide, Inc., filed with the U.S. Securities and Exchange Commission a Form S-3 registration statement relating to the Company's intention to offer and sell, from time to time, common stock, warrants, and a combination thereof, with a total value of up to $75,000,000. The Company's common stock is quoted on The Nasdaq Global Market under the symbol "QTWW." The last reported sale price of the Company's common stock on Sept. 7, 2011, was $3.29 per share. Each prospectus supplement will indicate if the securities offered thereby will be listed on any securities exchange. The Company's principal executive offices are located at 17872 Cartwright Road, Irvine, California 92614. The Company's telephone number at that location is (949) 399-4500. A full-text copy of the prospectus is available for free at: http://is.gd/ptT1JJ 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. QUINCY MEDICAL: Can Access Cash Collateral Until November 15 ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Massachusetts has entered a final order granting Quincy Medical Center, Inc., et al., authorization to use the Prepetition Collateral, including Cash Collateral of the prepetition secured parties, subject to a budget. As of the petition date, the Debtors owed the prepetition secured parties in the aggregate principal amount of roughly $58,130,000, plus accrued and unpaid interest and fees, costs and expenses, charges and all obligations incurred or owing under the Indenture. As adequate protection of the interests in the Prepetition Cash Collateral, including cash collateral, the Prepetition Secured Parties are granted: -- Allowed superpriority administrative claims as provided in Section 507(b) of the Bankruptcy Code. -- As additional adequate protection for any Collateral Diminution, the Debtors will pay in cash: (i) the Indenture Trustee fees and expenses arising prior to the Petition Date; and (ii) on a current basis, the Indenture Trustee fees and expenses arising on or subsequent to the Petition Date. The Debtor's authorization to use cash collateral will cease and expire upon the earliest to occur of Nov. 15, 2011, or the occurrence of a Termination Event, a complete enumeration of which is described in Paragraph 12 of the Final Order. Upon the occurrence of a Termination Event, the exclusive time periods during which only the Debtors may file a plan and solicit acceptances thereof will terminate; provided that, the termination will be effective solely with respect to the Indenture Trustee, the Prepetition Secured Parties and the Creditors' Committee. A copy of the Final Order is available at: http://bankrupt.com/misc/quincymedical.finalccorder.pdf About Quincy Medical Center Quincy Medical Center is a 196-bed, nonprofit hospital in Quincy, Massachusetts. Quincy Medical Center, Inc. together with two affiliates, sought Chapter 11 protection (Bankr. D. Mass. Lead Case No. 11-16394) on July 1, 2011. John T. Morrier, Esq., at Casner & Edwards, LLP, in Boston, serves as counsel to the Debtors. Navigant Capital Advisor LLC and Navigant Consulting Inc. serve as financial advisors. Epiq Bankruptcy Solutions LLC is the claims, noticing, and balloting agent. Quincy disclosed assets of $73 million and liabilities of $79.4 million. Debt includes $56.4 million owing on secured bonds issued through a state health-care finance agency. There is another $2.5 million secured obligation owing to Boston Medical Center Corp. Accrued liabilities are $18.2 million. On July 12, 2011, the U.S. Trustee for the District of Massachusetts appointed the Official Committee of Unsecured Creditors. RCG FOODS: Case Summary & 17 Largest Unsecured Creditors -------------------------------------------------------- Debtor: RCG Foods of Texas, Inc. P.O. Box 186 El Paso,, TX 79942 Bankruptcy Case No.: 11-31697 Chapter 11 Petition Date: September 2, 2011 Court: United States Bankruptcy Court Western District of Texas (El Paso) Judge: H. Christopher Mott Debtor's Counsel: E.P. Bud Kirk, Esq. Terrace Gardens 600 Sunland Park Drive, Bldg 4, #400 El Paso, TX 79912 Tel: (915) 584-3773 E-mail: budkirk@aol.com Scheduled Assets: $1,529,897 Scheduled Debts: $1,868,568 A list of the Company's 17 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txwb11-31697.pdf The petition was signed by Robert Gregoire, president. RCLC INC: Plan Confirmed; Anticipates Sept. 15 Plan Effective Date ------------------------------------------------------------------ On Aug. 29, 2011, the U.S. Bankruptcy Court for the District of New Jersey confirmed the Liquidating First Amended Joint Plan of RCLC, Inc., f/k/a Ronson Corporation, RA Liquidating Corp. f/k/a/ Ronson Aviation, Inc., and RCPC Liquidating Corp. f/k/a Ronson Consumer Products Corporation under Chapter 11 of the Bankruptcy Code. Under the provisions of the Confirmation Order and the Joint Plan, the Priority Claims, the Prepetition Credit Facility Claims, the Getzler Henrich Claim, and the Other Secured Claims, as those terms are defined in the Joint Plan, have either been satisfied in full or will be satisfied in full following the confirmation of the Joint Plan. The General Unsecured Claims, under the Joint Plan will not be fully satisfied. The General Unsecured Creditors will receive pro rata distributions form each of the three estates, the General Unsecured Creditors of the Company will receive approximately 5% of the amount of their claims, the General Unsecured Creditors of RA Liquidating Corp.("RAL") will receive approximately 44% of their claims, and the General Unsecured Creditors of RCPC Liquidating Corp. ("RCPC") will receive approximately 29% of the amount of their claims. At July 31, 2011, there were 5,083,539 shares of the Company's common stock outstanding. The outstanding shares of the Company will be canceled on the effective date and equity holders of the Company, RAL and RCPC will receive no distribution under the Joint Plan for their equity interests. The effective date is expected to be no later than Sept. 15, 2011. On the effective date, the remaining assets of the Company, RAL and RCPC will be transferred to a liquidating trust for distribution in accordance with the Joint Plan. As reported in the TCR on June 8, 2011, the Court approved on March 24, the disclosure statement explaining RCLC's First Amended Joint Plan of Liquidation as containing adequate information pursuant to the Bankruptcy Code, a copy of which is available for free at http://is.gd/aFNUp9 About RCLC Inc. RCLC, Inc., formerly known as Ronson Corporation, in Woodbridge, New Jersey, historically, has been engaged principally in these businesses -- Consumer Products; and Aviation-Fixed Wing and Helicopter Services. Trenton, New Jersey-based Ronson Aviation, Inc., now known as RA Liquidating Corp., filed for Chapter 11 protection on Aug. 17, 2010 (Bankr. D. N.J. Case No. 10-35315). The Debtor estimated its assets at $10 million to $50 million and its debts at $1 million to $10 million. Affiliates RCLC, Inc. (Bankr. D. N.J. Case No. 10-35313), and RCPC Liquidating Corporation (Bankr. D. N.J. Case No. 10-35318) filed separate Chapter 11 petitions on Aug. 17, 2010, each estimating their assets at $1 million to $10 million and debts at $1 million to $10 million. The cases, along with RCLC, Inc.'s, are jointly administered, with RCLC, Inc., as the lead case. Michael D. Sirota, Esq., and David M. Bass, Esq., and Felice R. Yudkin, Esq., at Cole, Schotz, Meisel, Forman & Leonard, P.A., in Hackensack, N.J., represent the Debtors as counsel. Wilson Elser Moskowitz Edelman & Dicker LLP serves as special environmental counsel. Attorneys at Lowenstein Sandler, PC, represent the Creditors' Committee as counsel. The Company's foreign subsidiary, RCC, Inc., formerly known as Ronson Corporation of Canada Ltd., is not included in the filing. Upon the closing of the sale of the Company's Aviation Division on Oct. 15, 2010, the Company ceased to have operations, other than to effectuate its wind-down and approve its liquidation plan by the Bankruptcy Court. ROTECH HEALTHCARE: James Flynn Discloses 5% Equity Stake -------------------------------------------------------- In a Schedule 13G filing with the U.S. Securities and Exchange Commission, James E. Flynn and his affiliates disclosed that as of Aug. 31, 2011, they beneficially own 1,305,924 shares of common stock of Rotech Healthcare Inc. representing 5.05% of the shares outstanding. A full-text copy of the filing is available for free at http://is.gd/OdzQ6G About Rotech Healthcare Based in Orlando, Florida, Rotech Healthcare Inc. (NASDAQ: ROHI) -- http://www.rotech.com/-- provides home medical equipment and related products and services in the United States, with a comprehensive offering of respiratory therapy and durable home medical equipment and related services. The company provides equipment and services in 48 states through approximately 500 operating centers located primarily in non-urban markets. The Company reported a net loss of $4.20 million on $496.42 million of net revenue for the year ended Dec. 31, 2010, compared with a net loss of $21.08 million on $479.87 million of net revenue during the prior year. The Company's balance sheet at June 30, 2011, showed $289.17 million in total assets, $571.50 million in total liabilities, $4.90 million in Series A convertible redeemable preferred stock and a $287.22 million total stockholders' deficiency. * * * In October 2010, Standard & Poor's Ratings Services raised its corporate credit rating on Rotech Healthcare to 'B-' from 'CCC'. The outlook is positive. In the March 22, 2011, edition of the TCR, Standard & Poor's Ratings Services said that it raised its corporate credit rating to 'B' from 'B-' on Orlando, Fla.-based Rotech Healthcare Inc., following the completion of the company's $290 million second-lien senior secured notes offering. "The ratings on Rotech Healthcare Inc. reflect the company's weak business risk profile, incorporating Rotech's exposure to Medicare reimbursement reductions for its products and services," said Standard & Poor's credit analyst Jesse Juliano. The rating also reflects the company's highly leveraged financial risk profile. As reported by the Troubled Company Reporter on March 10, 2011, Moody's Investors Service upgraded Rotech Healthcare Inc.'s Corporate Family Rating and Probability of Default Rating to B2 from Caa1 in connection with the proposed refinancing of the company's senior subordinated notes due 2012 with a new $290 million of senior secured notes offering due 2018. The B2 Corporate Family Rating reflects Moody's expectation that the company will continue its trend of improving credit metrics through better operating performance and small strategic acquisitions. Moody's expects credit metrics to be relatively weak, albeit in line with the B2 rating with debt-to-EBITDA leverage of approximately 4.9 times at the time of the transaction. However Moody's also expects additional de- leveraging over time through EBITDA expansion and the generation of modest free cash flow. ROUND TABLE: To Hire Cooper White for Franchise Litigation ---------------------------------------------------------- Round Table Pizza, Inc., asks the U.S. Bankruptcy Court for the Northern District of California for authority to employ Cooper, White & Cooper LLP as a counsel for the special purpose of providing franchise litigation advice and representation. Robert Ebe, Esq., a member of the firms assures the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Round Table Based in Concord, California, Round Table Pizza, Inc. -- http://www.roundtablepizza.com/-- is a private, 100% employee- owned company with corporate offices based in Concord, California. Round Table is largely owned by an Employee Stock Ownership Plan, with 3,190 participants. The ESOP is designed and intended to provide a source of retirement income to Round Table's loyal, long-term employees. Round Table filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 11-41431) on Feb. 9, 2011. Judge Roger L. Efremsky presides over the case. Scott H. McNutt, Esq., at McNutt Law Group serves as the Debtor's bankruptcy counsel. The Debtors also tapped Frank, Rimerman & Co. as an auditor and accountant. Round Table disclosed $1,066,524 in assets and $35,625,649 in liabilities as of the Chapter 11 filing. The case is jointly administered with affiliates -- The Round Table Franchise Corporation, Round Table Development Company, and Round Table Pizza Nevada LLC. The official committee of unsecured creditors has tapped Brownstein Hyatt Farber Schreck, LLP as counsel. The Debtor also tapped First Bankers Trust Services, Inc. as discretionary, independent, and institutional ESOP Trustee, and Johanson Berenson LLP as an ESOP counsel. First Bankers Trust Services, Inc., was appointed as institutional trustee of the Round Table Restated Employee Stock Ownership Plan and Trust (ESOP). Johanson Berenson LLP serves as an ESOP counsel. ROUND TABLE: Taps Meyers Harrison as Financial Consultant --------------------------------------------------------- Round Table Pizza, Inc., asks the U.S. Bankruptcy Court for the Northern District of California for authority to employ Meyers, Harrison & Pia, LLC as financial consultant for First Bankers Trust Services, Inc. effective as of July 13, 2011. FBTS was appointed as the sole discretionary, independent and institutional trustee of the Round Table Restated Employee Stock Ownership Plan and Trust. The professional services that MHP will render to FBTS include, without limitation: (a) analyzing the financial implications to the Round Table Restated Employee Stock Ownership Plan and the Round Table Restated Employee Stock Ownership Trust as a result of the pending bankruptcy action and plan of reorganization of Round Table Pizza, Inc.; and (b) analyzing the current compensation arrangements with RTP's management as well as any accrued compensation balances in order to advise FBTS of alternative arrangements including the possibility of the implementation of a synthetic equity plan. MHP's fees will be based on hourly rates and will be $45,000 to $95,000 for compensation consulting and bankruptcy financial consulting and will not exceed $70,000 without first notifying FBTS. MHP will obtain prior written approval for any out-of-pocket expenses related to valuation that exceed $500 and any out-of- pocket expenses related to travel that exceed $2,500. MHP assures the Court that it is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Round Table Based in Concord, California, Round Table Pizza, Inc. -- http://www.roundtablepizza.com/-- is a private, 100% employee- owned company with corporate offices based in Concord, California. Round Table is largely owned by an Employee Stock Ownership Plan, with 3,190 participants. The ESOP is designed and intended to provide a source of retirement income to Round Table's loyal, long-term employees. Round Table filed for Chapter 11 bankruptcy protection (Bankr. N.D. Calif. Case No. 11-41431) on Feb. 9, 2011. Judge Roger L. Efremsky presides over the case. Scott H. McNutt, Esq., at McNutt Law Group serves as the Debtor's bankruptcy counsel. The Debtors also tapped Frank, Rimerman & Co. as an auditor and accountant. Round Table disclosed $1,066,524 in assets and $35,625,649 in liabilities as of the Chapter 11 filing. The case is jointly administered with affiliates -- The Round Table Franchise Corporation, Round Table Development Company, and Round Table Pizza Nevada LLC. The official committee of unsecured creditors has tapped Brownstein Hyatt Farber Schreck, LLP as counsel. The Debtor also tapped First Bankers Trust Services, Inc. as discretionary, independent, and institutional ESOP Trustee, and Johanson Berenson LLP as an ESOP counsel. First Bankers Trust Services, Inc., was appointed as institutional trustee of the Round Table Restated Employee Stock Ownership Plan and Trust (ESOP). Johanson Berenson LLP serves as an ESOP counsel. SAGEFIELD LLC: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Sagefield, LLC P.O. Box 339 Rixeyville, VA 22737 Bankruptcy Case No.: 11-16495 Chapter 11 Petition Date: September 2, 2011 Court: United States Bankruptcy Court Eastern District of Virginia (Alexandria) Judge: Brian F. Kenney Debtor's Counsel: Ronald J. Aiani, Esq. 86 East Lee St. Warrenton, VA 20186-3328 Tel: (540) 347-5295 E-mail: raiani@aianilaw.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Sharon Y. Darling, sole member. SALPARE BAY: Court Confirms Third Amended Chapter 11 Plan --------------------------------------------------------- On Aug. 15, 2011, the U.S. Bankruptcy Court for the District of Oregon confirmed Salpare Bay, LLC's Third Amended Chapter 11 Plan dated June 13, 2011, as modified at the time of the Aug. 11, 2011 confirmation hearing. The Effective Date of the Plan will occur on the 15th day after this Order is entered. Paragraph 4.5 is amended to read as follows: 4.5 Class 9 - Common Fund Claim. Class 9 is impaired. Class 9 consists solely of the claim of Stoel Rives. The holder of the allowed Class 9 Claim shall be paid as follows: (1) quarterly interest only payments at the rate of 3.25% per annum to be paid on the last day of the calendar quarter commencing with the first full quarter after the Effective Date; and (2) one-half of the balance of the Class 9 Claim on Dec. 31, 2016, and the remainder of the Class 9 Claim on Dec. 31, 2017. As reported in the TCR on June 27, 2011, the Bankruptcy Court approved on June 17, 2011, the disclosure statement explaining the Debtor's plan of reorganization. A redlined version of the Third Amended Disclosure Statement, dated June 14, 2011, is available for free at: http://ResearchArchives.com/t/s?7651 About Salpare Bay Vancouver, Washington-based Salpare Bay LLC operates a condominium. Salpare Bay filed for Chapter 11 bankruptcy protection (Bankr. D. Ore. Case No. 10-35333) on June 7, 2010. Tara J. Schleicher, Esq., at Farleigh Wada Witt, in Portland, Oregon, represents the Debtor. The Company estimated assets and debts at $10 million to $50 million. A creditors committee has not been appointed in this case. SBARRO INC: Wins Judge Nod to Auction Assets -------------------------------------------- Samuel Howard at Bankruptcy Law360 reports that U.S. Bankruptcy Judge Shelley C. Chapman on Friday cleared the way for Sbarro Inc. to auction its assets in an effort to attract a bid that brings in more than the planned debt-for-equity swap with the pizza chain's lenders. According to Law360, Judge Chapman approved the bidding procedures over objections from creditors who had lobbied for a piecemeal liquidation of the assets, allowing the bankrupt pizzeria to cast around for superior offers to the baseline sale proposed in the Chapter 11 plan. About Sbarro Inc. The Sbarro family started its business after moving to Brooklyn, New York, from Naples, Italy, in 1956. Today Sbarro is a leading, global Italian quick service restaurant concept with approximately 5,170 employees, 1,045 restaurants throughout 42 countries, and annual revenues in excess of $300 million. Sbarro Inc. sought bankruptcy protection under Chapter 11 (Bankr. S.D.N.Y. Lead Case No. 11-11527) to eliminate about $200 million in debt. The Debtor disclosed $51,537,899 in assets and $460,975,646 in liabilities as of the Chapter 11 filing. Sbarro said it has reached an agreement with all of its second- lien secured lenders and approximately 70% of its senior noteholders on the terms of a reorganization plan that will eliminate more than half of the Company's total indebtedness. Edward Sassower, Esq., and Nicole Greenblatt, Esq., at Kirkland & Ellis, LLP, serve as the Debtors' general bankruptcy counsel. Rothschild, Inc., is the Debtors' investment banker and financial advisor. PriceWaterhouseCoopers LLP is the Debtors' bankruptcy consultants. Marotta Gund Budd & Dzera, LLC, is the Debtors' special financial advisor. Curtis, Mallet-Prevost, Colt & Mosle LLP serves as the Debtors' conflicts counsel. Epiq Bankruptcy Solutions, LLC, is the Debtors' claims agent. Sard Verbinnen & Co is the Debtors' communications advisor. SEAVIEW PLACE: Court Approves Oxtal Real Estate as Appraiser ------------------------------------------------------------ The Hon. K. Rodney May of the U.S. Bankruptcy Court for the Middle District of Florida authorized Seaview Place Developers, Inc., et al., to employ Ronald A. Oxtal of Oxtal Real Estate Advisors, Inc., to provide appraisal and valuation services with respect to certain real property located in New Port Richey and Bellair, Florida. The Debtors related that the Plan contemplates, among other things, providing certain secured creditors with all or some portion of their respective collateral in full satisfaction of their allowed secured claims. This approach necessarily entails a valued (either by consent of the parties or by judicial determination) of the collateral to be provided to the respective secured creditors as the "indubitable equivalent" of their claims. Oxtal is expected to, among other things: i) assist with the evaluation and appraisal of their respective property for the purpose of determining the value of the property in connection with the motion for relief from stay filed by Premier American Bank and the Debtors' Plan and the treatment of the secured claims; and ii) provide expert testimony with respect to the valuation at or in connection with confirmation of the Debtors' Plan and other purposes in the Bankruptcy cases. The Debtors proposed to immediately pay the appraiser the requested retainer of $13,250, with $7,950 due upon submission of the reports, and the balance plus any additional actual hourly costs for consultation or research not included in the appraisal fee. The Court authorized the Debtors to pay the appraiser an initial retainer as: Company Amount ------- ------ Seaview $5,000 Gulf $5,000 Harbor $1,500 The Debtors are authorized to pay the appraiser fee from available funds, which may include proceeds from their respective approved postpetition loans. The non-debtor affiliate, Dockside at Gulf Landings, Inc. will be responsible for paying its portion of the appraisal fee in accordance with the agreement, pending further order of the Court. Following substantial completion and submission to the Debtors of the appraisal reports, an amount sufficient to pay 80% of the appraisal fee, along with 80% of any accrued hourly fees and costs will be due from the Debtors subject to these procedures: A. The appraiser will be entitled to periodically file one or more fee statements for the balance of the appraisal fees owed by each Debtor after application of the initial retainer, together with any additional hourly costs for consultation, research, or similar hourly charges not included in the appraisal fee; B. The fee statement(s) will be filed with the Court and will contain a 10 day negative notice provision in accordance with Local Rules. In the event no objections are timely filed to the fee statement, the appraiser will be authorized to apply up to 80% of the initial retainer to any due but unpaid balances, and the Debtors will thereafter be authorized to pay any remaining balance (up to 80% of such unpaid amount) to the appraiser from available funds without further Court order. About Seaview Place Developers, Inc. Clearwater Beach, Florida-based Seaview Place Developers, Inc., filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 11-05126) on March 22, 2011. According to its schedules, the Debtor disclosed $24,769,500 in total assets and $15,147,744 in total debts as of the Petition Date. SEAVIEW PLACE: Wants Secured Status of Gulf Contractors' Claim -------------------------------------------------------------- Seaview Place Developers, Inc., et al., asks the Bankruptcy Court for the Middle District of Florida to determine the secured status of any claim of Gulf Contractors, Inc., and with respect to the claim, an estimation of Gulf Contractors' interest in the Seaview Building for operational and confirmation purposes. The Debtor also request that the Court enter an order determining that Gulf Contractors has no valid lien in any of the Debtors' property and to the extent Gulf Contractors does have a lien, the value of the Seaview Building to determine Gulf Contractor's interest in same, together with any further relief the Court may deem appropriate. The Debtors relate that in connection with their development of their real property, commonly known as the Seaview Building, the Debtors retained Crimone Development Corporation as general contractor who then apparently Gulf Contractors. The Debtors obtained a bond provided by Fidelity and Deposit Company of Maryland, in connection with the development. The Debtor has completed construction of the Seaview Building. On Sept. 2, 2008, Gulf Contractors recorded a claim of lien in the Pasco County public records asserting a claim for $146,940 for unpaid labor, materials and services secured by an interest in the Seaview Building. On Dec. 5, 2008, Gulf Contractors initiated an action against Seaview and Crimone in the Circuit Court of the Sixth Judicial Circuit in and for the County of Pasco. On Dec. 17, 2008, Gulf Contractors recorded an Amended Notice of Lis Pendens in the Pasco County public records regarding the State Court Action. Gulf Contractors received notice of the Debtors' bankruptcy filing, but failed to file a timely proof of claim. The Debtors add that the bond is up for renewal on Sept. 2, 2011, which would require an expenditure of approximately $5,000 from the Debtor. About Seaview Place Developers, Inc. Clearwater Beach, Florida-based Seaview Place Developers, Inc., filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 11-05126) on March 22, 2011. According to its schedules, the Debtor disclosed $24,769,500 in total assets and $15,147,744 in total debts as of the Petition Date. SGTB LODGINGS: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: SGTB Lodgings, LLC dba La Quinta Inn 3400 Parkwood Blvd. Frisco, TX 75034 Bankruptcy Case No.: 11-42751 Chapter 11 Petition Date: September 2, 2011 Court: United States Bankruptcy Court Eastern District of Texas (Sherman) Debtor's Counsel: Arthur I. Ungerman, Esq. 8140 Walnut Hill Lane, Suite 301 Dallas, TX 75231 Tel: (972) 239-9055 Fax: (972) 239-9886 E-mail: arthur@arthurungerman.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Kanwarbir Singh Aulakh, managing member. SHAMROCK-SHAMROCK: Taps The Temples Company as Lease Broker ----------------------------------------------------------- Shamrock-Shamrock, Inc., asks the U.S. Bankruptcy Court for the Middle District of Florida for permission to employ Pollyann Martin of The Temples Company to facilitate the lease of the Debtor's real property located at 821 Nova Rd., Unit 4, Daytona Bch, Florida. Pollyann Martin, associate broker of the Temples Company, tells the Court that firm will receive a broker a commission of $1.50 per square foot to the total space leased to the national tenant (6500 square feet), or a one-time fee of $9,750. Ms. Martin assures the Court that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Ms. Martin can be reached at: 2960 Hartley Road, No. 200 Jacksonville, FL 32257 E-mail: pmartin@thetemplescompany.com About Shamrock-Shamrock Inc. Daytona Beach, Florida-based Shamrock-Shamrock Inc. owns 70 parcels of Florida real property. It filed for Chapter 11 protection (Bankr. M.D. Fla. Case No. 11-07061) on May 10, 2011. Judge Arthur B. Briskman presides over the case. The Law Offices of Mickler & Mickler serves as bankruptcy counsel. SHAMROCK-SHAMROCK INC: Kimberly Rezanka OK'd for State Litigation ----------------------------------------------------------------- The Hon. Arthur B. Briskman of the U.S. Bankruptcy Court for the Middle District of Florida authorized Shamrock-Shamrock, Inc., to employ Kimberly B. Rezanka to represent the Debtor in the pending State Court litigation related to the City of Daytona Beach, Florida. As reported in the Troubled Company Reporter on June 27, 2011, Ms. Rezanka at Dean Mead will provide legal services relating to the pending claim against the City of Daytona Beach. The representation of the Debtor is limited to the suit pending in the Circuit Court of Volusia County, Florida, related to an eminent domain/taking action filed by the Debtor against the City. The suit has been pending for 18 months and may produce a significant return for the Debtor. The funds will be used to pay unsecured creditors and future expenses or secured payment related to the chapter 11 plan of the Debtor. The principal of the Debtor, Patrick Sullivan, has agreed to pay all the fees and costs incurred in the representation of the Debtor. The compensation for the representation will comprise of attorneys fee, not to exceed $325 per hour, and all reasonable fees and costs. To the best of the Debtor's knowledge, Ms. Rezanka is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Shamrock-Shamrock Daytona Beach, Florida-based Shamrock-Shamrock Inc. owns 70 parcels of Florida real property. It filed for Chapter 11 protection (Bankr. M.D. Fla. Case No. 11-07061) on May 10, 2011. Judge Arthur B. Briskman presides over the case. The Law Offices of Mickler & Mickler serves as bankruptcy counsel. The Company scheduled assets of $12,284,976 and liabilities of $17,021,201, owing on mortgages to a variety of lenders. SHAW GROUP: Moody's Says Rating Unaffected by Westinghouse Sale --------------------------------------------------------------- Moody's Investors Service said The Shaw Group Inc.'s ("Shaw", Ba1/positive) decision to sell its 20% interest in Westinghouse back to Toshiba Corporation (Baa2/stable) is a positive credit development but does not immediately influence its ratings or outlook. The principal methodology used in rating Shaw was the Global Construction Industry Methodology published in November 2010. SHELL KNOB: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Shell Knob Commercial Group, LLC dba The Playce Jason Gilbert-Manager 15131 El Camino Real Del Mar, CA 92014 Bankruptcy Case No.: 11-30844 Chapter 11 Petition Date: September 2, 2011 Court: United States Bankruptcy Court Western District of Missouri (Joplin) Judge: Jerry W. Venters Debtor's Counsel: M. Brent Hendrix, Esq. LAW OFFICE OF M. BRENT HENDRIX 1909 E. Bennett St. Springfield, MO 65804 Tel: (417) 889-8820 Fax: (417) 889-3493 E-mail: brenthendrix@sbcglobal.net Scheduled Assets: $2,500,000 Scheduled Debts: $1,023,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Jason Gilbert, manager of Fidelis Properties, Inc., Debtor's manager. SHER INCORPORATED: Case Summary & 5 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Sher Incorporated fka Sunset Lodge 2942 Ember Drive Decatur, GA 30034 Bankruptcy Case No.: 11-75905 Chapter 11 Petition Date: September 5, 2011 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Debtor's Counsel: John C. Pennington, Esq. JOHN C. PENNINGTON, P.C. P.O. Box 275 Helen, GA 30545 Tel: (706) 878-0033 Fax: (706) 878-9916 E-mail: jcppc@windstream.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's five largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ganb11-75905.pdf The petition was signed by Sher S. Kala, CEO. SHILO INN: Withdraws Motions to Extend Exclusivity Periods ---------------------------------------------------------- Shilo Inn, Killeen, LLC, has voluntarily withdrawn its motion to extend its exclusivity periods for filing a plan of reorganization and obtaining acceptances thereof [docket entry no. 58}. In a separate motion, Shilo Inn, Diamond Bar, LLC, also voluntarily withdrew its motion to extend its exclusivity periods [docket enty no. 57]. About Shilo Inn Portland, Oregon-based Shilo Inn, Killeen, LLC, filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 10-62057) on Dec. 6, 2010. David B. Golubchik, Esq., and John-Patrick M. Fritz, Esq., at Levene Neale Bender Rankin and Brill LLP, in Los Angeles, serve as bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliate Shilo Inn, Diamond Bar, LLC (Bankr. C.D. Calif. Case No. 10-60884) filed separate Chapter 11 petition on Nov. 29, 2010. The case is jointly administered with Shilo Inn Killeen. SHILOH INN: Court Continues Disclosures Hearing to Nov. 10 ---------------------------------------------------------- On Aug. 16, 2011, the U.S. Bankruptcy Court for the Central District of California, having considered the stipulation by and between Shilo Inn, Diamond Bar, LLC, and secured creditor Cathay Bank, continued the hearing to consider the adequacy of the disclosure statement explaining Shilo Inn, Diamond Bar LLC's plan to Nov. 10, 2011, at 1:30 p.m. The parties stipulated to continue the hearing to November 10 in order to allow the Debtor and Cathay sufficient time to attempt to reach an amicable resolution of their dispute and to avoid the time and expense of filing and litigating a contested disclosure statement and plan. The hearing to consider the adequacy of Diamond Bar's disclosure statement had been scheduled for Sept. 22, 2011. About Shilo Inn Portland, Oregon-based Shilo Inn, Killeen, LLC, filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 10-62057) on Dec. 6, 2010. David B. Golubchik, Esq., and John-Patrick M. Fritz, Esq., at Levene Neale Bender Rankin and Brill LLP, in Los Angeles, serve as bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliate Shilo Inn, Diamond Bar, LLC (Bankr. C.D. Calif. Case No. 10-60884) filed separate Chapter 11 petition on Nov. 29, 2010. The case is jointly administered with Shilo Inn Killeen. SILVERLAKE LLC: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Silverlake, LLC/Silverland, LLC 2710 Garden Falls Drive Manvel, TX 77578 Bankruptcy Case No.: 11-37685 Chapter 11 Petition Date: September 5, 2011 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Marvin Isgur Debtor's Counsel: C Michael Black, Esq. LAW OFFICE OF C. MICHAEL BLACK One Sugar Creek Center Blvd., Ste 1080 Sugar Land, TX 77478 Tel: (713) 522-5999 Fax: (713) 522-2925 E-mail: cmb@cmblack-lawyer.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Kevin Ngo, managing member. SINCLAIR BROADCAST: Inks Pact to Buy Four Points for $200 Million ----------------------------------------------------------------- Sinclair Broadcast Group, Inc., on Sept. 8, 2011, entered into a definitive agreement to purchase the assets of Four Points Media Group LLC from affiliates of Cerberus Capital Management, L.P., for $200 million. Four Points owns and operates seven stations in four markets. The transaction is expected to close during the first quarter of 2012 subject to approval of the Federal Communications Commission and customary antitrust clearance. Following receipt of antitrust approval of the transaction, which is expected to occur within 30 days, the Company will provide services to the stations pursuant to a local marketing agreement. The Company expects to finance the purchase of the assets with a new term loan, a draw on its revolving line of credit, or cash on hand. About Sinclair Broadcast Based in Baltimore, Maryland, Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) -- http://www.sbgi.net/-- one of the largest and most diversified television broadcasting companies, currently owns and operates, programs or provides sales services to 58 television stations in 35 markets. The Company's television group reaches roughly 22% of U.S. television households and includes FOX, ABC, CBS, NBC, MNT, and CW affiliates. The Company's balance sheet at June 30, 2011, showed $1.49 billion in total assets, $1.63 billion in total liabilities and a $135.30 million total deficit. * * * As reported by the TCR on Feb. 24, 2011, Standard & Poor's Ratings Services raised its corporate credit rating on Hunt Valley, Md.- based TV broadcaster Sinclair Broadcast Group Inc. to 'BB-' from 'B+'. The rating outlook is stable. "The 'BB-' rating on Sinclair reflects S&P's expectation that the company could keep its lease-adjusted debt to EBITDA below historical levels throughout the election cycle, absent a reversal of economic growth, meaningful debt-financed acquisitions, or significant shareholder-favoring measures," explained Standard & Poor's credit analyst Deborah Kinzer. Moody's raised its ratings for Sinclair Broadcast Group, Inc., and subsidiary Sinclair Television Group, Inc., including the Corporate Family Rating and Probability-of-Default Rating, each to Ba3 from B1, and the ratings for individual debt instruments, concluding its review for possible upgrade as initiated on Aug. 5, 2010. Moody's also assigned a B2 (LGD 5, 87%) rating to the proposed $250 million issuance of Senior Unsecured Notes due 2018 by STG. The Speculative Grade Liquidity Rating remains unchanged at SGL-2. The rating outlook is now stable. As reported by the Troubled Company Reporter on Feb. 24, 2011, Standard & Poor's Ratings Services raised its corporate credit rating on Hunt Valley, Md.-based TV broadcaster Sinclair Broadcast Group Inc. to 'BB-' from 'B+'. The rating outlook is stable. "The 'BB-' rating on Sinclair reflects S&P's expectation that the company could keep its lease-adjusted debt to EBITDA below historical levels throughout the election cycle, absent a reversal of economic growth, meaningful debt-financed acquisitions, or significant shareholder-favoring measures," explained Standard & Poor's credit analyst Deborah Kinzer. SMART ONLINE: Sells Add'l $500,000 Convertible Note Due 2013 ------------------------------------------------------------ Smart Online, Inc., sold an additional convertible secured subordinated note due Nov. 14, 2013, in the principal amount of $500,000 to a current noteholder upon substantially the same terms and conditions as the previously issued notes sold on Nov. 14, 2007, Aug. 12, 2008, Nov. 21, 2008, Jan. 6, 2009, Feb. 24, 2009, April 3, 2009, June 2, 2009, July 16, 2009, Aug. 26, 2009, Sept. 8, 2009, Oct. 5, 2009, Oct. 9, 2009, Nov. 6, 2009, Dec. 23, 2009, Feb. 11, 2010, April 1, 2010, June 2, 2010, July 1, 2010, Aug. 13, 2010, Aug. 30, 2010, Sept. 14, 2010, Sept. 30, 2010, Nov. 9, 2010, Feb. 7, 2011, March 4, 2011, April 6, 2011, and May 4, 2011. The Company is obligated to pay interest on the New Note at an annualized rate of 8% payable in quarterly installments commencing Dec. 6, 2011. The Company is not permitted to prepay the New Note without approval of the holders of at least a majority of the aggregate principal amount of the Notes then outstanding. The Company plans to use the proceeds to meet ongoing working capital and capital spending requirements. The sale of the New Note Shares was made pursuant to an exemption from registration in reliance on Registration D promulgated under the Securities Act of 1933, as amended. About Smart Online Headquartered in Durham, North Carolina, Smart Online, Inc. (OTC BB: SOLN) -- http://www.smartonline.com/-- develops and markets software products and services targeted to small businesses that are delivered via a Software-as-a-Service (SaaS), or SaaS, model. The Company also provides Web site consulting services, primarily in the e-commerce retail industry products and services. The Company reported a net loss of $3.95 million on $1.03 million of total revenue for the year ended Dec. 31, 2010, compared with a net loss of $9.54 million on $1.42 million of total revenue during the prior year. The Company's balance sheet at June 30, 2011, showed $1.28 million in total assets, $22.34 million in total liabilities and a $21.06 million total stockholders' deficit. As reported by the TCR on April 4, 2011, Cherry, Bekaert & Holland, LLP, in Raleigh, North Carolina, noted that the Company has suffered recurring losses from operations and has a working capital deficiency as of Dec. 31, 2010. These conditions, according to the independent auditors, raise substantial doubt about the Company's ability to continue as a going concern, the auditors said. SOLAR THIN: Updates Status of Business with SEC ----------------------------------------------- Solar Thin Films, Inc., has discontinued operations with respect to the sale of turnkey factories for the production of thin film solar modules. The Company has restructured its business and is concentrating on establishing, financing, managing and syndicating solar farms as power projects both domestically and internationally. There can be no assurance that those businesses will be successful. Although the Company is required to file quarterly and annual reports with the SEC, it is delinquent in its annual report for the year ended Dec. 31, 2010, and its quarterly reports for the periods ending March 31, 2011, and June 30, 2011. Accordingly the information contained in existing SEC filings is not a fair and accurate representation of the Company's business or finances. The Company said it anticipates substantial business operations in the near future. There can be no assurance of what volume of business operations the Company will have or that those operations will be successful. The Company anticipates converting a substantial portion of its outstanding debt into equity in order to reduce its indebtedness and improve its balance sheet. Although the effect will be to issue substantial additional shares which will dilute existing shareholders' percentage ownership in the Company, management believes it is in the Company's best interests to do so to improve the overall value of the Company and its shares. However, there can be no assurance that the Company will be able to convert any of its debt or the terms upon which such debt will be converted. A default judgment was entered against the Company on June 13, 2011, in the County Court of Dallas County, Texas, in favor of Doed Corporation in the sum of $494,533. The Company anticipates that the debt underlying this judgment will be converted and that upon conversion the Company will receive a satisfaction of judgment. Legal Proceedings Four limited partners of Algatec Equity Partners, L.P., owning approximately 4.5% of the limited partnership interests of Algatec commenced an arbitration proceeding which challenged an exchange of assets between Algatec and the Company. These four limited partners also filed an application in the Supreme Court of the State of New York, Country of New York. Although the Company was not named as a party, Robert M. Rubin, the Company's President, CEO and Sole Director who is also a managing member of the general partner of Algatec, was named as a defendant. As a part of the settlement agreement resolving this matter, the Company is not proceeding with the previously proposed transaction with Algatec. The Company is defending a lawsuit commenced in the Court of Common Pleas of Bucks County Pennsylvania by James S. Molinaro against the Company and Atlantis Solar, LLC, a company it purchased from Molinaro. Molinaro alleges that the Company has failed to meet its obligations with respect to a Stock Purchase Agreement dated as of May 21, 2010, by and among Atlantis, Molinaro and the Company. Molinaro alleges that the Company has not made required capital contributions to Atlantis, as a result of which Atlantis has been unable to pay Molinaro his salary. The suit alleges lost profits of $1,500,000 and claims additional damages in excess of $33,260. The Company intends to vigorously defend such lawsuit. Officers and Directors Robert M. Rubin is currently the Company's sole Officer and Director. Other Officers and Directors disclosed in prior SEC filings tendered their resignations for various personal reasons. The Board of Directors has passed a resolution authorizing Barry Pomerantz to sign documents approved by the Board of Directors. About Solar Thin Headquartered in New York, Solar Thin Films, Inc., engages in the design, manufacture and installation of thin-film amorphous silicon ("a-Si") photovoltaic turnkey manufacturing facilities. RBSM LLP, in New York, N.Y., expressed substantial doubt about Solar Thin Films, Inc.'s ability to continue as a going concern, following the Company's 2009 results. The independent auditors noted that the Company has suffered recurring losses from operations. The Company's balance sheet at Sept. 30, 2010, showed $2.05 million in total assets, $5.40 million in total liabilities, and a stockholders' deficit of $3.35 million. STILLWATER INVESTMENT: Case Summary & 6 Largest Unsec Creditors --------------------------------------------------------------- Debtor: Stillwater Investment Group, LLC 2851 Trent Road New Bern, NC 28562 Bankruptcy Case No.: 11-06747 Chapter 11 Petition Date: September 2, 2011 Court: United States Bankruptcy Court Eastern District of North Carolina (Wilson) Judge: Stephani W. Humrickhouse Debtor's Counsel: George M. Oliver, Esq. OLIVER FRIESEN CHEEK, PLLC P.O. Box 1548 New Bern, NC 28563 Tel: (252) 633-1930 Fax: (252) 633-1950 E-mail: efile@ofc-law.com Scheduled Assets: $8,049,287 Scheduled Debts: $5,984,465 A list of the Company's six largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nceb11-06747.pdf The petition was signed by Thomas A. Bayliss, IV, managing member. SUGARLEAF TIMBER: Court Approves Brennan Manna as Main Counsel -------------------------------------------------------------- The Bankruptcy Court has authorized Sugarleaf Timber LLC to employ as its bankruptcy counsel: Robert D. Wilcox, Esq. Brian N. Krulick, Esq. BRENNAN, MANNA & DIAMOND, PL 800 W. Monroe Street Jacksonville, FL 32202 Tel: 904-366-1500 Fax: 904-366-1501 E-mail: rdwilcox@bmdpl.com bnkrulick@bmdpl.com Mr. Wilcox's hourly rate is $305. Mr. Krulick's is $205. About Sugarleaf Timber Sugarleaf Timber, LLC, in Jacksonville, Florida, filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 11-03352) on May 8, 2011. Chief Bankruptcy Judge Paul M. Glenn presides over the case. Robert D. Wilcox, Esq., at Brennan, Manna & Diamond, PL, serves as the Debtor's bankruptcy counsel. In its Schedules, the Debtor disclosed assets of $31,016,486 and liabilities of $26,781,079. The petition was signed by Victoria D. Towers, manager of Diversified Investments of Jacksonville LLC, which serves as manager to the Debtor. SUGARLEAF TIMBER: Hires Broom Moody as Property Appraiser --------------------------------------------------------- Sugarleaf Timber LLC sought and obtained authority from the U.S. Bankruptcy Court for the Middle District of Florida to employ Broom Moody Johnson & Grainger, Inc. and Farley J. Grainger, CRE, MAI as consulting property appraiser. The Debtor will pay Mr. Grainger a $300 hourly fee. Broom Moody assured the Court that it is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Sugarleaf Timber Sugarleaf Timber, LLC, in Jacksonville, Florida, filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 11-03352) on May 8, 2011. Chief Bankruptcy Judge Paul M. Glenn presides over the case. Robert D. Wilcox, Esq., at Brennan, Manna & Diamond, PL, serves as the Debtor's bankruptcy counsel. In its Schedules, the Debtor disclosed assets of $31,016,486 and liabilities of $26,781,079. The petition was signed by Victoria D. Towers, manager of Diversified Investments of Jacksonville LLC, which serves as manager to the Debtor. SUNSHINE HOSPITALITY: Case Summary & 7 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Sunshine Hospitality, LLC 411 Allenby Dr Marysville, OH 43040-9176 Bankruptcy Case No.: 11-59164 Chapter 11 Petition Date: September 2, 2011 Court: United States Bankruptcy Court Southern District of Ohio (Columbus) Judge: John E. Hoffman Jr. Debtor's Counsel: Patricia A. Kovacs, Esq. 500 Madison Ave., Suite 525 Toledo, OH 43604 Tel: (419) 241-4050 Fax: (419) 241-8726 E-mail: patricia.kovacs@bex.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's seven largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ohsb11-59164.pdf The petition was signed by Gurjeet Kaur. SUSTAINABLE ENVIRONMENTAL: Amends WES Technology Purchase Pact -------------------------------------------------------------- Sustainable Environmental Technologies Corporation and its subsidiary SET IP Holdings LLC, and World Environmental Solutions Pty Ltd. entered into an amendment to a Technology Purchase Agreement and its ancillary agreements between the parties, whereby SET Corp purchased certain technology from WES. Pursuant to the terms of the Amendment: (i) SET Corp's option to purchase 3% of the capital stock of WES has been canceled; (ii) WES' warrant to purchase 5,000,000 shares of SET Corp's common stock at a price of $0.35 per share has been canceled; (iii) WES' $200,000 convertible secured promissory note (convertible at $0.35 per hare of SET Corp common stock) issued by SET Corp, and all security interest granted thereunder, has been canceled; (iv) SET Corp's ownership of 12% of the capital stock of WES has been canceled; (v) SET Corp's payment to WES upon certain terms of WES' successful installation and sale of a MultiGen unit has been reduced to 3,750,000 shares of SET Corp common stock; (vi) the maximum share issuance by SET Corp to WES based on WES royalties paid to SET Corp for certain WES sales of MultiGen units has been reduced to 5,000,000 shares of SET Corp common stock; (vii) any shares of SET Corp common stock issued to WES pursuant to the Agreement, as amended, shall be restricted from transfer for one year from the date of issuance; (viii) SET Corp maximum royalty obligation to WES for SET Corp sales of MultiGen units has been reduced to $500,000; (ix) WES will pay SET Corp a royalty of 10% of gross revenues for WES sales of MultiGen units; (x) WES and SET Corp shall split 75/25 certain fees paid to WES in connection with agency for sales of MultiGen units outside of Australia; and (xi) the parties have covenanted to use their best efforts in regards to maintaining distributor status for sourcing components for the Multigen units. A full-text copy of the Amendment to Technology Purchase Agreement is available for free at http://is.gd/yHexBz About Sustainable Environmental Upland, Calif.-based Sustainable Environmental Technologies Corporation (formerly RG Global Lifestyles, Inc.) offers water and wastewater treatment engineering and construction services. The Company's balance sheet at June 30, 2011, showed $3.39 million in total assets, $3.50 million in total liabilities and a $101,562 total stockholders' deficit. During the quarter ended Dec. 31, 2010, the Company incurred an operating loss from continuing operations before income taxes of $265,464. As of Dec. 31, 2010, the Company had a working capital deficit of approximately $2.3 million. "These conditions raise substantial doubt about the Company's ability to continue as a going concern," the Company said in the filing. SWADENER INVESTMENT: Can Borrow $225,740 to Pay Ad Valorem Taxes ---------------------------------------------------------------- On Aug. 16, 2011, U.S. Bankruptcy Court for the Northern District of Oklahoma granted Swadener Investment Properties, LLC, permission to borrow the sum of $225,740.23 or that amount to pay the 2007, 2008, 2009, and 23010 ad valorem taxes owed to the Tulsa County Treasurer so that the Debtor's lease with Witt Properties, Inc., can be assumed. The Debtor is a party to a long term lease agreement with Witt concerning the real estate upon which the Debtor's 19-story commercial building located at 5810 E. Skelly Drive, in Tulsa, Okla, is located. The Debtor's interest in the commercial building and the lease is referred to as the "Remington Tower." The term "Remington Tower" does not include Witt's interest therein. Valley National Bank will (a) receive an administrative claim with priority over any or all administrative expenses of the kind specified in 11 U.S.C. Sections 503(b) or 507(b) in the event a plan of reorganization is not confirmed, (b) receive a lien as to the net cash attributable to the commercial buildings in which it has a mortgage in the event a plan of reorganization is not confirmed or this case is converted to Chapter 7, and (c) be secured by the additional amount loaned on the mortgage already in place against SIP's leasehold interest in the Remington Tower. The liens and claims granted to Valley National Bank will be subject and subordinate to payment of quarterly U.S. Trustee Fees. No liens will attach to Witt's interest in Remington Tower. As reported in the TCR on Aug. 30, 2011, the Debtor asked the Bankruptcy for authority to incur post-petition and super-priority indebtedness from Valley National Bank of up to $212,517.61, to pay the 2007, 2008, and 2009 ad valorem taxes owed to the Tulsa County Treasurer. About Swadener Investment Tulsa, Oklahoma-based Swadener Investment Properties, LLC, owns and operates four (4) commmercial office buildings and a retail shopping Center. The Company filed for Chapter 11 bankruptcy protection (Bank. N.D. Okla. Case No. 11-10322) on Feb. 18, 2011. Scott P. Kirtley, Esq., at Riggs, Abney, Neal, Turpen, Orbison, & Lewis, in Tulsa, Okla., serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliate Pecan Properties, Inc. (Bankr. N.D. Okla. Case No. 11- 10323) filed a separate Chapter 11 petition. TEN X: Can Access Cole Taylor's Cash Collateral Until Sept. 30 -------------------------------------------------------------- In a second interim order dated Aug. 31, 2011, the U.S. Bankruptcy Court granted Ten X Capital Partners III, LLC (Series B) permission to use cash collateral through Sept. 30, 2011, solely to the extent necessary to meet its monthly expenses and make the "Adequate Protection Payments" to the Cole Taylor Bank "the "Secured Creditor") as set forth in a budget. The Debtor is granted a replacement lien in all of Debtor's assets to the extent of the Debtor's use of the cash collateral and any diminution of the value of the Secured Creditor's interest in the Debtor's assets. The Replacement Liens will be subject to the prepetition liens of the Secured Creditor in the Debtor's assets. A further hearing is set for Sept. 29, 2011, at 10:00 a.m. As reported previously, Cole Taylor asserts claims against the Debtor, which as of May 3, 2011, totaled $6,434,850 with interest accruing from May 3, 2011, at the rate of $2,257.43 per day plus fees and costs. Cole Taylor asserts that its claims are secured by first mortgages on the Debtor's real estate commonly known as 601 W. Polk St., Chicago, IL 60607. Cole Taylor further asserts that it holds a lien on all of the rental revenue and receipts generated by the Real Estate by operation of the assignment of rents it holds. About Ten X Capital Partners Ten X Capital Partners III, LLC (Series B) operates an industrial real property located at 601 W. Polk Street, Chicago, Illinois, as a telecom hotel and storage facility. Ten X Capital Partners III, LLC (Series B) filed a voluntary Chapter 11 petition (Bankr. N.D. Ill. Case No. 11-27294) on June 30, 2011. Judge John H. Squires presides over the case. The Debtor is represented by Chester H. Foster, Jr., Esq., at Foster & Smith. In its petition, the Debtor estimated $10 million to $50 million in assets, and $1 million to $10 million in debts. The petition was signed by John W. Branch, manager of RM Advisors, LLC. TENET HEALTHCARE: BlackRock Discloses 11% Equity Stake ------------------------------------------------------ In an amended Schedule 13G filing with the U.S. Securities and Exchange Commission, BlackRock, Inc., disclosed that as of Aug. 31, 2011, it beneficially owns 52,349,296 shares of common stock of Tenet Healthcare Corp. representing 11.05% of the shares outstanding. As of July 26, 2011, there were 473,554,717 shares of the Company's common stock, $0.05 par value, outstanding. A full-text copy of the filing is available for free at: http://is.gd/uaY6T9 About Tenet Healthcare Dallas, Texas-based Tenet Healthcare Corporation (NYSE: THC) -- http://www.tenethealth.com/-- is a health care services company whose subsidiaries and affiliates own and operate acute care hospitals, ambulatory surgery centers and diagnostic imaging centers. The Company's balance sheet at June 30, 2011, showed $8.43 billion in total assets, $6.54 billion in total liabilities, $16 million in redeemable noncontrolling interests in equity of consolidated subsidiaries and $1.87 billion in total equity. * * * As reported by the TCR on Aug. 5, 2010, Moody's Investors Service affirmed its 'B2' corporate family rating for Tenet. The rating reflects Moody's expectation that the Company will likely see positive free cash flow for the full year ending Dec. 31, 2010, as operating results continue to improve and litigation settlement payments end in the third quarter. However, the ratings also consider the significant headwinds facing the company, and the sector as a whole, with respect to increasing bad debt expense, weak volume trends and changes in mix as commercial volumes decline. S&P's corporate credit rating on Tenet is 'B' and remains unchanged. The ratings agency noted that while the Company has experience recent successes to date of a multiyear turnaround effort, the Company has a still-weak business risk profile and high financial leverage. Fitch Ratings has issued its Recovery Rating review of the U.S. Healthcare sector. This review includes an analysis of valuation multiples, EBITDA discounts applied, and detailed recovery worksheets for issuers with a Fitch Issuer Default Rating of 'B+' or lower in this sector. Fitch Ratings has placed Tenet Healthcare Corp.'s ratings on Rating Watch Positive. Tenet's existing ratings are Issuer Default Rating 'B-'; Secured bank facility 'BB-/RR1'; Senior secured notes 'BB-/RR1'; Senior unsecured notes 'B/RR3. The ratings apply to approximately $4.3 billion of debt outstanding as of Sept. 30, 2010. TENNVADA HOLDINGS: Case Summary & 5 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Tennvada Holdings 1, LLC 3311 S. Rainbow Boulevard, Suite 209 Las Vegas, NV 89146 Bankruptcy Case No.: 11-24135 Chapter 11 Petition Date: September 2, 2011 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Linda B. Riegle Debtor's Counsel: Timothy P. Thomas, Esq. LAW OFFICES OF TIMOTHY P. THOMAS, LLC 8670 W. Cheyenne Ave. #120 Las Vegas, NV 89129 Tel: (702) 227-0011 Fax: (702) 227-0015 E-mail: TTHOMAS@TTHOMASLAW.COM Scheduled Assets: $1,000,000 Scheduled Debts: $3,271,345 A list of the Company's five largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nvb11-24135.pdf The petition was signed by William Dyer. Debtor-affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- 325 Paso Holdings 10-34204 12/30/10 Integrated Financial Associates, Inc. 11-13537 03/14/11 Isleton Land Holdings, LP 11-12552 02/25/11 Ranches Holdings, LLC 11-13006 03/04/11 TFF INCORPORATED: Case Summary & 13 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: TFF Incorporated 1381 Red Oak Trail Fairview, TX 75069 Bankruptcy Case No.: 11-42752 Chapter 11 Petition Date: September 2, 2011 Court: United States Bankruptcy Court Eastern District of Texas (Sherman) Debtor's Counsel: Joyce W. Lindauer, Esq. 8140 Walnut Hill Lane, Suite 301 Dallas, TX 75231 Tel: (972) 503-4033 Fax: (972) 503-4034 E-mail: courts@joycelindauer.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 13 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txeb11-42752.pdf The petition was signed by Paul Tanner, Jr., treasurer. THORNBURG MORTGAGE: Bank of America Asks Court to Dismiss Suit -------------------------------------------------------------- Linda Sandler, writing for Bloomberg News, reports that Bank of America Corp. asked a judge to dismiss a lawsuit against it and Countrywide Home Loans Inc. filed by defunct Thornburg Mortgage, saying the trustee liquidating the firm failed "to state a claim," according to a court filing. Trustee Joel Sher filed eight lawsuits in bankruptcy court in Baltimore in April, seeking money from JPMorgan Chase & Co. and other banks. The lawsuit is styled as, JOEL I. SHER, CHAPTER 11 TRUSTEE for TMST, Inc. f/k/a Thornburg Mortgage, Inc., and ZUNI INVESTORS, LLC, v. COUNTRYWIDE HOME LOANS, INC. and BANK OF AMERICA CORPORATION, Adv. Proc. No. 11-00337 (Bankr. D. Md.). Attorneys for Zuni Investors are David J. Grais, Esq., Mark B. Holton, Esq., and Leanne M. Wilson, Esq. -- dgrais@graisellsworth.com mholton@graisellsworth.com and lwilson@graisellsworth.com -- at Grais & Ellsworth LLP, in New York. Attorneys for Bank of America Corporation are Jonathan Rosenberg, Esq., and William J. Sushon -- jrosenberg@omm.com and wsushon@omm.com -- O'Melveny & Myers LLP in New York. Attorneys for Countrywide Home Loans, Inc., are Lawrence D. Coppel, Esq. -- lcoppel@gfrlaw.com -- at Gordon, Feinblatt, Rothman, Hoffberger & Hollander LLC in Baltimore, Maryland; Joseph F. Yenouskas, Esq. -- jyenouskas@goodwinprocter.com -- at Goodwin Procter LLP, in Washington DC; and Brian E. Pastuszenski, Esq., John J. Falvey, Jr., Esq., and Matthew G. Lindenbaum, Esq. -- bpastuszenski@goodwinprocter.com jfalvey@goodwinproctor.com and mlindenbaum@goodwinproctor.com -- at Goodwin Procter in Boston, Massachusetts. As reported by the Troubled Company Reporter on May 3, 2011, the TMST Trustee sued Wall Street banks for $2.2 billion, alleging they engaged in series of "collusive" and "predatory" schemes that eventually drove Thornburg into bankruptcy. The defendants include: * J.P. Morgan Chase & Co., * Citigroup Inc., * Goldman Sachs Group Inc., * Bank of America, * Countrywide Home Loans, * subsidiaries of Barclays PLC, * Credit Suisse Group, * Royal Bank of Scotland Group PLC, and * UBS AG In the suit against BofA and Countrywide, the Trustee contends Countrywide misrepresented the nature of hundreds of home loans securitized and sold to Thornburg in 2006; and that Bank of America, now Countrywide's parent, has "engaged in an elaborate corporate shell game" intended to shed Countrywide's liabilities. The Trustee is asking the bankruptcy judge overseeing the Thornburg case to force the bank to repurchase the loans. About Thornburg Mortgage Based in Santa Fe, New Mexico, Thornburg Mortgage Inc. (NYSE: TMA) -- http://www.thornburgmortgage.com/-- was a single-family residential mortgage lender focused principally on prime and super-prime borrowers seeking jumbo and super-jumbo adjustable rate mortgages. It originated, acquired, and retained investments in adjustable and variable rate mortgage assets. Its ARM assets comprised of purchased ARM assets and ARM loans, including traditional ARM assets and hybrid ARM assets. Thornburg Mortgage and its four affiliates filed for Chapter 11 bankruptcy (Bankr. D. Md. Lead Case No. 09-17787) on May 1, 2009. Thornburg changed its name to TMST, Inc. Judge Duncan W. Keir is handling the case. David E. Rice, Esq., at Venable LLP, in Baltimore, Maryland, served as counsel to Thornburg Mortgage. Orrick, Herrington & Sutcliffe LLP served as special counsel. Jim Murray, and David Hilty, at Houlihan Lokey Howard & Zukin Capital, Inc., served as investment banker and financial advisor. Protiviti Inc. served as financial advisory services. KPMG LLP served as the tax consultant. Epiq Systems, Inc., serves claims and noticing agent. Thornburg disclosed total assets of $24.4 billion and total debts of $24.7 billion, as of Jan. 31, 2009. On Oct. 28, 2009, the Court approved the appointment of Joel I. Sher as the Chapter 11 Trustee for the Company, TMST Acquisition Subsidiary, Inc., TMST Home Loans, Inc., and TMST Hedging Strategies, Inc. He is represented by Shapiro Sher Guinot & Sandler. TIEN SHAN: Case Summary & 5 Largest Unsecured Creditors ------------------------------------------------------- Debtor: Tien Shan, Inc. aka Dairy Ashford Mobil 3151 S. Dairy Ashford St. Houston, TX 77082 Bankruptcy Case No.: 11-37546 Chapter 11 Petition Date: September 2, 2011 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Letitia Z. Paul Debtor's Counsel: Matthew Hoffman, Esq. LAW OFFICES OF MATTHEW HOFFMAN, P.C. 2777 Allen Parkway, Suite 1000 Houston, TX 77019 Tel: (713) 654-9990 Fax: (713) 654-0038 E-mail: mhecf@aol.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 five largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/txsb11-37546.pdf The petition was signed by Alper T. Karaali, shareholder, director and officer. TITANIUM GROUP: Posts HK$644,900 Net Loss in Fiscal Q1 ------------------------------------------------------ Titanium Group Limited filed its quarterly report on Form 10-Q, reporting a net loss of HK$644,990 on HK$11.9 million of revenue for the three months ended June 30, 2011, compared with a net loss of HK$2.0 million on HK$4,804 of revenue for the same period of 2010. The Company reported a net loss of HK$2.1 million on HK$17.0 million of revenue for the six months ended June 30, 2011, compared with a net loss of HK$3.0 million on HK$9,608 of revenue for the same period last year. For the six months ended June 30, 2011, the Group incurred a net loss of HK$2,081,929 resulting in an accumulated deficit of HK$22,932,850 and a working capital deficit of HK$3,384,475 at that date. "The continuation of the Group as a going concern through June 30, 2012, is dependent upon the continuing financial support from its stockholders," the Company said in the filing. "Management believes, the existing stockholders will provide the additional cash to meet with the Company's obligations as they become due." "These factors raise substantial doubt about the Group's ability to continue as a going concern." A copy of the Form 10-Q is available at http://is.gd/HHCMu7 Titanium Group Limited, through its subsidiaries, mainly engages in the manufacture and sales of electric wire products in the PRC, with its principal place of business in Shenzhen City, the PRC. TRACY BROADCASTING: Dist. Ct. Affirms Ruling Against Bank's Lien ---------------------------------------------------------------- Chief District Judge Wiley Y. Daniel upheld a bankruptcy court decision that Valley Bank and Trust Co. does not have a security interest in Tracy Broadcasting Corporation's Federal Communications Commission broadcast license or any proceeds derived from a further transfer of the License pursuant to 11 U.S.C. Sec. 552(a). Valley Bank appealed the lower court's decision, asserting that the Bankruptcy Court's Order errs in four major respects: (1) the Debtor's private right to accept compensation for a transfer of its broadcast License is a "general intangible" in which Valley Bank perfected a security interest, thus, Sec. 552(a) is no bar to enforcing Valley Bank's security interest if the Chapter 11 Trustee sells the License postpetition; (2) the Bankruptcy Court's Order confuses Sec. 552(a) with Sec. 552(b); (3) the Bankruptcy Court's Order errs in assuming the FCC's clear approval of security interests taken in a broadcast licensee's private right to accept compensation for the transfer of its broadcast license; and (4) the Bankruptcy Court's Order errs in mentioning, but not fully rejecting, case authority "that fail[s] to recognize FCC approval for security interests in private rights associated with FCC licenses and refuse[s] to enforce such security interest on that basis." "I am not persuaded by Valley Bank's arguments," Judge Daniel said in a Sept. 1, 2011 Amended Order, a copy of which is available at http://is.gd/DS3dI2from Leagle.com. The case before the District Court is styled as, Valley Bank and Trust Co., Appellant, v. Spectrum Scan, LLC and Joli A. Lofstedt, Chapter 11 Trustee, Appellees, Civil Action No. 10-cv-02522-WYD (D. Colo.). Tracy Broadcasting Corporation, based in Brighton, Colo., sought Chapter 11 protection (Bankr. D. Colo. Case No. 09-27059) on Aug. 19, 2009, and is represented by Cynthia T. Kennedy, Esq., at Kennedy Law Firm in Lafayette, Colo. At the time of the filing, the Debtor estimated its assets and debts at less than $10 million. On Feb. 16, 2010, the Bankruptcy Court entered an order appointing Joli A. Lofstedt as Chapter 11 trustee of the Debtor's estate. TRIPLE O: Voluntary Chapter 11 Case Summary ------------------------------------------- Debtor: Triple O Enterprises, Ltd. 6358 Pinemont Dr. Houston, TX 77092 Bankruptcy Case No.: 11-37645 Chapter 11 Petition Date: September 5, 2011 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Marvin Isgur Debtor's Counsel: Reese W. Baker, Esq. BAKER & ASSOCIATES 5151 Katy Freeway, Suite 200 Houston, TX 77007 Tel: (713) 869-9200 Fax: (713) 869-9100 E-mail: courtdocs@bakerassociates.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Patricia Oakes, authorized agent. TUBE CITY: S&P Puts 'B+' Corp. Credit Rating on Watch Positive -------------------------------------------------------------- Standard & Poor's Ratings Services placed all of its ratings on Glassport, Pa.-based Tube City IMS Corp., including the 'B+' corporate credit rating, on CreditWatch with positive implications. The CreditWatch listing indicates that there is a 50% chance of an upgrade on completion of the review. "The positive implication of the CreditWatch listing reflects our expectation that the steel service provider's operating performance this year will be better than we previously expected," said Standard & Poor's credit analyst Maurice Austin. The moderate recovery in steel production and greater industry capacity utilization -- now more than 75% -- factor into the raised expectations. Standard & Poor's expects to resolve the CreditWatch within the next several weeks. Any upgrade would likely be limited to one notch. "In resolving the CreditWatch listing, we will evaluate the company's prospects for sustaining its recent operating improvements," Mr. Austin said. "We will also consider the company's financial and operating strategies, financial policies, and our outlook for market conditions." UNI-PIXEL INC: Appoints Former Samsung Sr. VP Seong Shin as COO --------------------------------------------------------------- UniPixel, Inc., has appointed former Samsung Electronics senior vice president, Seong Peter Shin, as its new chief operating officer. Mr. Shin brings to UniPixel more than 30 years of experience in IP and business development, engineering and business management, global marketing and sales, and research and design. His background includes LCD panel technology and fabrication, process and architecture development, OEM/ODM product development for display and notebook systems, and major application device launches. "UniPixel has established a tremendous foundation of advanced performance film technology with broad applications across a number of industries," commented Mr. Shin. "In particular, UniPixel's breakthrough UniBoss technology provides for a more transparent, sensitive, and power efficient touchscreen, thereby overcoming several major hurdles faced by today's device makers. UniBoss' design and proprietary manufacturing process can also dramatically lower material costs and production time, while generating higher yields. Its complex micro-structure capability, along with the recent breakthrough in double-sided production, opens the door to even greater market opportunities. I am excited and proud to join the UniPixel team at this pivotal point in the company's development." Reed Killion, UniPixel's president and CEO, commented: "We are very pleased to welcome Peter to our executive management team as our new COO. Peter's extensive background and accomplishments in the technology sector include many industry firsts for electronic products, processes and components. His knowledge of display and photonics markets and the processes involved align perfectly with our Performance Engineered Films platform, production processes and products. Peter's cross-disciplinary skill set also offers strong synergistic advantages to our executive management team, board of directors and employees. We have developed a culture of innovation here at UniPixel, and Peter not only complements this culture, but brings a very strong track record of execution and success." Mr. Shin had previously held numerous senior management positions at Samsung Electronics Co., lastly serving as a senior vice president of research and development, where he led breakthroughs in new display technology, nano imprinting technology, roll-to- roll process architecture, flexible display development with low temperature process, and low power consumption/high color gamut devices. He was responsible for developing Samsung's next generation panel technology and LED backlight systems, and was noted for innovations such as reducing the number of panel production steps. Earlier in his career at Samsung, he was vice president of strategic marketing and sales, where he led Samsung's $3 billion NB LCD Panel business, selling to major customers like Dell, HP, IBM, Apple, Acer, Gateway, Toshiba, Sony, NEC, Fujitsu, and Siemens. He was responsible for introducing new products, and he maintained the highest profit in the history of Samsung's LCD business among all product groups. He also previously served as the vice president of Samsung's notebook LCD panel development team, where he optimized gate IC integration, color filter on array, for thin & light, high color gamut/high resolution, and low power consumption. More recently, Mr. Shin helped guide Glonet Systems, a marketer and manufacturer of networking equipment, in the development of its new TCON IC technology, helping to create design flexibility and adoption of its high-speed interface application. Before Samsung Electronics, Mr. Shin was founder, president and CEO of Photonage, a developer and manufacturer of a high speed, zero-EMI interface. Prior to Photonage, Mr. Shin served as vice president of the computer technology center at Samsung Information Systems America, where he was responsible for portable systems R&D, from concept to new technology, as well as related business development. Mr. Shin also previously served as a director of engineering at Texas Instruments' PPP division, as well as served in an executive capacity with a successful Silicon Valley startup and mobile system R&D center. Mr. Shin earned his Bachelor of Science in Electrical Engineering from Seoul National University, and his Master of Science in Electrical Engineering from San Jose State University. About Uni-Pixel Inc. The Woodlands, Tex.-based Uni-Pixel, Inc. (OTC BB: UNXL) -- http://www.unipixel.com/-- is a production stage company delivering its Clearly Superior(TM) Performance Engineered Films to the Lighting & Display, Solar and Flexible Electronics market segments. The Company reported a net loss of $3.81 million on $243,519 of thin film revenue for the year ended Dec. 31, 2010, compared with a net loss of $5.37 million on $0 of thin film revenue during the prior year. The Company's balance sheet at June 30, 2011, showed $10.93 million in total assets, $64,742 in total liabilities and $10.86 million total shareholders' equity. PMB Helin Donovan, LLP, in Houston, expressed substantial doubt about the Company's ability to continue as a going concern, following the Company's 2009 results. The independent auditors noted that the Company has sustained losses and negative cash flows from operations since inception. US FIDELIS: Creditors Sue Mepco Over $57 Million Claim ------------------------------------------------------ Martin Bricketto at Bankruptcy Law360 reports that unsecured creditors of U.S. Fidelis Inc. sued Mepco Finance Corp. in Missouri bankruptcy court on Tuesday to disallow a $57 million claim against the Company's estate, arguing that Mepco should have known about the company's alleged false marketing and refund abuses. "Mepco should not be permitted to stand above the fray, pointing its finger at all of the players in the industry and placing the blame on them," the Official Committee of Unsecured Creditors for U.S. Fidelis Inc. said in its 64-page complaint, according to Law360. 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. USEC INC: To Hold Advisory Votes on Exec. Compensation Annually --------------------------------------------------------------- At USEC Inc.'s 2011 annual meeting of shareholders held on April 28, 2011, a majority of the shares cast voted, on an advisory basis, to hold future advisory (non-binding) votes on executive compensation on an annual basis. After consideration of the shareholder voting results, the Company has determined that future advisory (non-binding) votes on executive compensation will occur annually until the Company decides to hold the next advisory vote on the frequency of advisory votes on executive compensation. About USEC Inc. Headquartered in Bethesda, Maryland, USEC Inc. (NYSE: USU) -- http://www.usec.com/-- supplies enriched uranium fuel for commercial nuclear power plants. The Company's balance sheet at June 30, 2011, showed $4.12 billion in total assets, $2.80 billion in total liabilities and $1.32 billion in stockholders' equity. * * * USEC Inc. carries 'Caa1' corporate and probability of default ratings, with "developing" outlook, from Moody's, and 'CCC+' long term foreign issuer credit rating and 'CCC-' long term local issuer credit rating, with outlook "developing", from Standard & Poor's. In May 2010, S&P said that its rating and outlook on USEC Inc. are not affected by the announcement that Toshiba Corp. and Babcock & Wilcox Investment Co., an affiliate of The Babcock & Wilcox Co., have signed a definitive investment agreement for $200 million with USEC. VENTANA HILLS: Court Confirms Anglo-Backed Reorganization Plan -------------------------------------------------------------- The Hon. Pamela S. Hollis of the U.S. Bankruptcy Court for the Northern District of Illinois confirmed the Plan of Reorganization proposed by Ventana Hills Associates, Ltd., et al., and Anglo Irish Bank Corporation Limited dated July 20, 2011. Anglo Irish is the Debtors' secured creditor and holds a first mortgage lien on the Debtors' apartment complex and substantially all of the Debtors' assets. On July 20, the Debtors and Anglo Irish submitted a stipulation and agreement in support of the confirmation of the joint Plan. Among other things, the parties agree that: 1. the joint Plan supersedes and replaces in all purposes herein both the Debtors' Third Amended Plan and Anglo's First Amended Plan; 2. to the extent necessary, both the Debtors and Anglo withdraw prior plan and objections to the prior plan; 3. the Joint Plan is the result of good faith, arms-length negotiations between the Debtor, Ivan Djurin and Anglo; 4. the Anglo settlement requires, among other things: -- the proposed joint Plans in both case and Berkeley Manor Apartments, L.P. case be confirmed; -- the obligations of the Reorganized Debtors to anglo in each case be cross collateralized and cross-defaulted; and -- the Reorganized Debtors and Dyurin be jointly and severally liable for portion the indebtedness of 2241 Elkhorn, LLC and the 5650 North Sheridan Corporation to Anglo, which will be secured by the assets of the Reorganized Debtors. The Plan generally contemplates the continuation of the Debtors' business, with payment in full, including interest on all allowed claims, through an extension of the maturity of the Debtors' secured institutional debt, the payment of the Debtors' real estate tax debts and the installment payment of the Debtors' unsecured debt. The Plan, although containing certain terms different from the terms of the Debtors' prior Plan does not adversely alter the treatment of any impaired class of claims who voted in favor of the Debtors' prior Plan. A full-text copy of the July 20 Plan is available for free at http://bankrupt.com/misc/VENTANAHILLS_plan.pdf About Ventana Hills Ventana Hills Associates, Ltd., is the owner and operator of a residential apartment project located in Pittsburgh, Pennsylvania, known as "Ventana Hills Apartments. Ventana Hills Apartments was constructed in 2002 as a rental apartment community, in two phases, and was purchased by the Debtor in 2004 for $50,000. Ventana Hills Associates and affiliate Ventana Hills Phase II, L.P., filed for Chapter 11 bankruptcy (Bankr. N.D. Ill. Case No. 09-41755) on Nov. 3, 2009. The Debtors each estimated assets of and debts of $50 million to $100 million in their respective petitions. Richard H. Fimoff, Esq., at Robbins, Salomon & Patt Ltd., in Chicago, Illinois, represent the Debtor. WASTE2ENERGY HOLDINGS: Executives Balk at Call for Trustee ---------------------------------------------------------- Dow Jones' DBR Small Cap reports that top executives at Waste2Energy Holdings Inc. rejected a call by creditors to force them out, arguing that only they possess the expertise to get the struggling company's first major project off the ground in Scotland and overhaul the South Carolina-based recycler's finances. Greenville, S.C.-based Waste2Energy Holdings, Inc. (Pink Sheets: WTEZ) -- http://www.waste2energy.com/-- is a "cleantech" technology company that designs, builds, installs and sells waste to energy plants that generate "Renewable Green Power" converting biomass or other solid waste streams traditionally destined for landfills into clean renewable energy. The Company incurred a net loss from continuing operations of $4.0 million and used $1.8 million of cash in continuing operations for the three months ended June 30, 2010. At June 30, 2010, the Company had a working capital deficit of $8.8 million and a $34.5 million accumulated deficit. The Company's balance sheet at June 30, 2010, showed $3.4 million in total assets, $11.7 million in total liabilities, and a stockholders' deficit of $8.3 million. As reported in the Troubled Company Reporter on July 19, 2010, Marcum LLP, in New York, expressed substantial doubt Waste2Energy Holdings' ability to continue as a going concern, following its results for the fiscal year ended March 31, 2010. The independent auditors noted that the Company has incurred a significant loss from continuing operations of $11.7 million and used cash of $5.2 million for continuing operations which resulted in an accumulated deficit of $30.4 million and a working capital deficiency of $6.6 million as of March 31, 2010. Default As reported in the TCR on Feb. 2, 2011, the Company has not paid approximately $276,000 of interest due on the of the Company's 12% Senior Convertible Debentures (the "Debentures") due on Jan. 1, 2011, and as of Jan. 8, 2011, an additional Event of Default under the Debentures has occurred on outstanding debentures having an aggregate principal balance of $5,830,400 and an Event of Default has occurred on outstanding Debentures having an aggregate principal balance of $4,227,500. WECK CORP: Court Confirms Liquidating Plan ------------------------------------------ On Aug. 24, 2011, the U.S. Bankruptcy Court for the Southern District of New York confirmed the first amended joint plan of liquidation proposed by The Wweck Corporation, et al., and the official committee of unsecured creditors. A copy of the confirmation order is available at: http://bankrupt.com/misc/weck.confirmationorder.aug24.pdf As reported in the Troubled Company Reporter on April 18, the Plan will facilitate the liquidation of the Debtors' estates and the distribution of their remaining assets -- principally cash -- to holders of allowed claims. Under the Plan, among other things, holders of unsecured claims are expected to recover between 3% and 7% of their allowed claim. Each holder will receive its pro rata distribution of the liquidated assets of the estates after the payment of the administrative claims, priority claims, secured claims and plan expenses. Equity interest will be deemed canceled. The TCR reported on June 9 that the Debtors filed an amended Plan and Disclosure Statement. A full-text copy of the First Amended Plan, dated May 23, 2011, is available for free at: http://ResearchArchives.com/t/s?7631 About The Weck Corporation The Weck Corporation filed for Chapter 11 bankruptcy protection on August 13, 2010 (Bankr. S.D.N.Y. Case No. 10-14349). Mark T. Power, Esq., at Hahn & Hessen LLP, assists the Debtor in its restructuring effort. The Debtor estimated its assets and debts at $10 million to $50 million as of the Petition Date. Affiliates Weck Chelsea, LLC (Bankr. S.D.N.Y. Case No. 10-14353), Gracious Home.com, LLC (Bankr. S.D.N.Y. Case No. 10-14351), and West Weck, LLC (Bankr. S.D.N.Y. Case No. 10-14350) filed separate Chapter 11 petitions on Aug. 13, 2010. WEST CORP: Files 7th Amendment to Form S-1 Registration Statement ----------------------------------------------------------------- West Corporation filed with the U.S. Securities and Exchange Commission Amendment No.7 to Form S-1 registration statement relating to the public offering of an unspecified shares of common stock of West Corporation. No public market for the Company's common stock has existed since its recapitalization in 2006. The Company has applied to list its common stock on the Nasdaq Global Select Market under the symbol "WSTC." A full-text copy of the filing is available for free at: http://is.gd/pJeIkL About West Corporation Founded in 1986 and headquartered in Omaha, Nebraska, West Corporation -- http://www.west.com/-- provides outsourced communication solutions to many of the world's largest companies, organizations and government agencies. West Corporation has a team of 41,000 employees based in North America, Europe and Asia. The Company reported net income of $60.30 million on $2.39 billion of revenue for the year ended Dec. 31, 2010, compared with net income of $90.97 million on $2.38 billion of revenue during the prior year. The Company's balance sheet at June 30, 2011, showed $3.23 billion in total assets, $4.18 billion in total liabilities, $1.59 billion in Class L common stock, and a $2.54 billion total stockholders' deficit. * * * West Corp. carries a 'B2' corporate rating from Moody's and 'B+' corporate rating from Standard & Poor's. Moody's Investors Service upgraded the ratings on West Corporation's existing senior secured term loan to Ba3 from B1 and the rating on $650 million of existing senior notes due 2014 to B3 from Caa1 upon the closing of its recent refinancing transactions. Concurrently, Moody's affirmed all other credit ratings including the B2 Corporate Family Rating and B2 Probability of Default Rating. The rating outlook is stable. Standard & Poor's Ratings Services assigned Omaha, Neb.-based business process outsourcer West Corp.'s proposed $650 million senior unsecured notes due 2019 its 'B' issue-level rating (one notch lower than the 'B+' corporate credit rating on the company). The recovery rating on this debt is '5', indicating S&P's expectation of modest (10% to 30%) recovery in the event of a payment default. The company will use proceeds from the proposed transaction and some cash on the balance sheet to redeem its $650 million 9.5% senior notes due 2014. WHITE BIRCH: S&P Withdraws 'D' Corporate at Company's Request ------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'D' corporate credit rating on U.S.-based White Birch Paper Co. at the company's request. White Birch filed for protection under Chapter 11 in the U.S. Bankruptcy Court and under the Companies' Creditors Arrangement Act in Canada on Feb. 24, 2010. White Birch continues to be in negotiations related to the closing of the sale of its assets to Black Diamond Capital Management, according to court filings in the company's Chapter 11 proceedings. White Birch is the second-largest newsprint producer in North America behind AbitibiBowater Inc. (B+/Stable/--), which emerged from bankruptcy protection in December 2010. WOLF HOLLOW: S&P Withdraws 'CCC+' Rating on $260-Mil. Sr. Facility ------------------------------------------------------------------ Standard & Poor's Ratings Services withdrew its 'CCC+' rating on Wolf Hollow I L.P.'s $260 million senior secured bank facility and its 'CCC' rating on the company's $110 million second-lien term loan. The rating action follows the completion of Exelon Corp.'s purchase of the project and payment of all outstanding debt. Ratings List Ratings Withdrawn To From Wolf Hollow I L.P. First-lien senior secured NR CCC+/Watch Pos Recovery rating NR 1 Second-lien senior secured NR CCC/Watch Pos Recovery rating NR 1 WOLF MOUNTAIN: Disclosure Statement Hearing Set for Sept. 14 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Central District of California, Los Angeles Division, will convene a hearing to consider approval of the disclosure statement explaining the Chapter 11 Plan of Reorganization of Wolf Mountain Resorts, LC, on September 14, 2011, at 9:30 a.m. The Plan provides that (1) on the Effective Date the Debtor will make distributions to holders of certain claims, and (2) the Reorganized Debtor will make certain payments going forward. Holders of General Unsecured Claims will receive payments in Cash or will retain all legal, equitable, and contractual rights to which the Claims entitles the holder and may prosecute the Claim. The Debtor, according to court papers, is confident of the Reorganized Debtor's ability to make all required Plan payments because (1) Canyon Mountain Partners, LLC, has committed to funding the Reorganized Debtor with Cash and debtor-in-possession financing (convertible to equity on the Effective Date) and (2) ASC Utah, Inc., is required to make a rent payment of approximately $3,000,000 by September 15, 2011, and annual rent payments thereafter. The Debtor says that if ASC refuses to make the rent payment due on September 15, 2011, and the Court determines that ASC is not required to make the rent payments pending resolution of the appellate litigation, the Debtor will not have the ability to make the required Effective Date Plan payments and the Plan cannot be confirmed unless extensively modified. With respect to post-Confirmation payments, assuming that ASC timely makes all rent payments due and payable, the primary risk is that the ASC Judgment is upheld on appeal and one or more entities asserting Development Litigation Claims obtains a sizable judgment that is upheld on appeal, and the amount of the judgment exceeds the Reorganized Debtor's available Cash. In that event, the Plan provides the Reorganized Debtor 18 months to refinance or sell its properties to satisfy the judgments. Based on the Debtor's estimate of the value of the Debtor's assets and projection of Allowed Claims, the Debtor believes it is highly unlikely that the Debtor will not be able to satisfy all Allowed Claims in full. A full-text copy of the Disclosure Statement is available for free at http://ResearchArchives.com/t/s?76e2 About Wolf Mountain Resorts Wolf Mountain Resorts, L.C., based in Los Angeles, California, filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-30162) on May 9, 2011. Judge Peter Carroll presides over the case. Mark S. Horoupian, Esq., at SulmeyerKupetz, serves as bankruptcy counsel. Wolf Mountain Resorts estimated that both its assets and debts measure between $100 million and $500 million. WYSONG & MILES: Bankr. Court Rules on Reedy Fork's Cleanup Claims ----------------------------------------------------------------- Bankruptcy Judge William L. Stocks sustained Wysong & Miles Company's objections to environmental cleanup and indemnification claims of Reedy Fork Investments, LLC and Pennston Corporation and disallowed those claims except for a $229,113.70 portion for certain fees and costs. Reedy Fork and Pennston filed claims on account of contamination of 1, 1, 1-trichloroethane, a chlorinated solvent, of their property as a result of the Debtor's operations. The Claimants' property is located immediately to the east of the Debtor's property. A copy of Judge Stock's Sept. 6, 2011 Memorandum Opinion is available at http://is.gd/uX7Oddfrom Leagle.com. Wysong & Miles Company's operations have historically concentrated on the manufacture of industrial metal forming machines. It owns an industrial facility several miles northeast of Greensboro, North Carolina, along the U.S. Highway 29 corridor. It previously conducted its manufacturing operations at the facility, and continues to occupy the facility even though manufacturing operations are no longer conducted at the facility. Wysong & Miles filed for Chapter 11 bankruptcy (Bankr. M.D.N.C. Case No. 04-10005) on Jan. 4, 2004. The filing was precipitated by product liability litigation pursued by plaintiffs alleging injury during the use of equipment manufactured by the Debtor. The Debtor obtained confirmation of an Amended Plan of Reorganization on March 23, 2005. * Foley Adds 3 Bankruptcy Partners in San Diego ----------------------------------------------- Lisa Uhlman at Bankruptcy Law360 reports that Foley & Lardner LLP on Friday announced that three new partners had joined its San Diego bankruptcy and business reorganizations practice from Duane Morris LLP. Law360 relates that Christopher Celentino, Mikel R. Bistrow and Kathryn M.S. Catherwood, who were all members of Duane Morris' business reorganization and financial restructuring group, joined the firm's bankruptcy group, which the firm says is one of the largest and most prestigious in the country. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Share- Total Total Holders' Working Assets Liabilities Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------ ----------- ------- ANOORAQ RESOURCE ARQ SJ 1,016.8 (119.1) 20.8 AUTOZONE INC AZO US 5,884.9 (1,119.5) (655.3) LORILLARD INC LO US 2,498.0 (831.0) 904.0 MEAD JOHNSON MJN US 2,526.1 (184.5) 652.4 CLOROX CO CLX US 4,163.0 (86.0) (86.0) DUN & BRADSTREET DNB US 1,767.1 (567.8) (483.7) WEIGHT WATCHERS WTW US 1,104.5 (542.4) (274.4) TAUBMAN CENTERS TCO US 2,495.4 (426.8) - DIRECTV-A DTV US 19,177.0 (1,399.0) 1,270.0 SUN COMMUNITIES SUI US 1,322.8 (65.4) - VERISK ANALYTI-A VRSK US 1,408.1 (144.4) (216.1) AMC NETWORKS-A AMCX US 2,110.5 (1,099.4) 514.7 MOODY'S CORP MCO US 2,744.6 (16.6) 691.1 VERISIGN INC VRSN US 1,795.6 (4.2) 873.4 CHOICE HOTELS CHH US 441.3 (27.9) 6.5 DOMINO'S PIZZA DPZ US 487.0 (1,171.4) 167.9 GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5 DISH NETWORK-A DISH US 12,827.7 (92.6) 2,164.2 IPCS INC IPCS US 559.2 (33.0) 72.1 FRANCESCAS HOLDI FRAN US 69.7 (0.1) 22.8 THERAVANCE THRX US 303.1 (37.5) 253.4 VECTOR GROUP LTD VGR US 941.2 (50.1) 257.6 HCA HOLDINGS INC HCA US 23,877.0 (7,534.0) 2,613.0 DISH NETWORK-A EOT GR 12,827.7 (92.6) 2,164.2 MAINSTREET EQUIT MEQ CN 475.2 (10.5) - RURAL/METRO CORP RURL US 303.7 (92.1) 72.4 SALLY BEAUTY HOL SBH US 1,725.5 (260.7) 429.3 OTELCO INC-IDS OTT-U CN 317.0 (8.6) 21.8 OTELCO INC-IDS OTT US 317.0 (8.6) 21.8 AMERISTAR CASINO ASCA US 2,067.1 (121.9) (40.8) CABLEVISION SY-A CVC US 6,975.1 (5,439.8) (703.4) UNISYS CORP UIS US 2,642.9 (661.8) 374.7 PROTECTION ONE PONE US 562.9 (61.8) (7.6) CHENIERE ENERGY CQP US 1,726.6 (559.0) 22.7 RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4) SKULLCANDY INC SKUL US 108.5 (12.5) 33.2 INCYTE CORP INCY US 416.7 (136.3) 281.3 CHEFS WAREHOUSE CHEF US 95.8 (45.1) 6.9 BOSTON PIZZA R-U BPF-U CN 146.1 (101.0) 1.3 NATIONAL CINEMED NCMI US 817.6 (329.8) 62.2 CARBONITE INC CARB US 42.6 (11.4) (18.2) JUST ENERGY GROU JE CN 1,471.5 (208.2) (299.7) REGAL ENTERTAI-A RGC US 2,367.9 (538.3) (72.9) REVLON INC-A REV US 1,100.0 (677.5) 144.6 WORLD COLOR PRES WC CN 2,641.5 (1,735.9) 479.2 FREESCALE SEMICO FSL US 4,583.0 (4,401.0) 1,329.0 WORLD COLOR PRES WCPSF US 2,641.5 (1,735.9) 479.2 WORLD COLOR PRES WC/U CN 2,641.5 (1,735.9) 479.2 QUALITY DISTRIBU QLTY US 279.4 (113.4) 47.2 ECOSYNTHETIX INC ECO CN 45.2 (346.7) 32.2 CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1) WARNER MUSIC GRO WMG US 3,583.0 (289.0) (630.0) AMER AXLE & MFG AXL US 2,195.4 (357.9) 50.1 TOWN SPORTS INTE CLUB US 450.6 (4.3) (35.4) SINCLAIR BROAD-A SBGI US 1,497.3 (135.3) 69.0 BLUEKNIGHT ENERG BKEP US 327.4 (45.5) (90.0) RSC HOLDINGS INC RRR US 2,949.6 (59.2) (205.0) ALASKA COMM SYS ALSK US 615.6 (37.7) 20.4 PRIMEDIA INC PRM US 208.0 (91.7) 3.6 CHENIERE ENERGY LNG US 2,619.8 (430.3) (103.2) EXELIXIS INC EXEL US 454.2 (81.8) 90.2 QWEST COMMUNICAT Q US 16,849.0 (1,560.0) (2,828.0) MERITOR INC MTOR US 2,838.0 (963.0) 226.0 NPS PHARM INC NPSP US 253.3 (27.3) 201.5 PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9) NEXSTAR BROADC-A NXST US 558.0 (183.4) 35.4 PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9) CC MEDIA-A CCMO US 16,882.1 (7,270.0) 1,501.0 MORGANS HOTEL GR MHGC US 604.4 (51.3) 112.0 PDL BIOPHARMA IN PDLI US 284.3 (293.5) (4.6) PALM INC PALM US 1,007.2 (6.2) 141.7 ACCO BRANDS CORP ABD US 1,135.8 (28.3) 339.3 SINCLAIR BROAD-A SBTA GR 1,497.3 (135.3) 69.0 VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3) LIZ CLAIBORNE LIZ US 1,247.3 (211.1) (52.7) GLG PARTNERS INC GLG US 400.0 (285.6) 156.9 GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9 HUGHES TELEMATIC HUTC US 100.6 (94.9) (28.3) SMART TECHNOL-A SMT US 574.8 (17.3) 194.3 SMART TECHNOL-A SMA CN 574.8 (17.3) 194.3 RAPTOR PHARMACEU RPTP US 20.5 (14.6) (21.4) ABSOLUTE SOFTWRE ABT CN 116.7 (13.2) (2.9) GENCORP INC GY US 987.3 (161.1) 94.3 CENVEO INC CVO US 1,410.8 (330.1) 223.4 ISTA PHARMACEUTI ISTA US 135.7 (66.5) 10.4 HOVNANIAN ENT-B HOVVB US 1,697.8 (399.4) 1,028.2 CANADIAN SATEL-A XSR CN 174.4 (29.8) (55.9) DENNY'S CORP DENN US 286.7 (99.5) (39.9) AMR CORP AMR US 25,787.0 (4,509.0) (1,769.0) MANNKIND CORP MNKD US 228.4 (245.4) 5.3 EASTMAN KODAK EK US 5,334.0 (1,419.0) 842.0 CINCINNATI BELL CBB US 2,658.5 (633.6) 30.5 VONAGE HOLDINGS VG US 235.9 (75.0) (65.6) ********* 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 ***