/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/111215.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, December 15, 2011, Vol. 15, No. 347 Headlines 216 WEST 18: Court OKs Bryan Cave as Bankruptcy Counsel A & F SERVICE: Case Summary & 4 Largest Unsecured Creditors ACJ TRUE: Case Summary & 18 Largest Unsecured Creditors AHNO LLC: Court Confirms Exit Plan for Ambassador Hotel ALANCO TECHNOLOGIES: Posts $305,600 Net Loss in Sept. 30 Quarter AMBASSADORS INT'L: Creditors Give Up on Whippoorwill Lawsuit AS SEEN ON TV: Enters Into Contractor Agreement with Stratcon BANKS HOLDING: Court to Hear RBC Dismissal Motion on Dec. 21 BERNARD L. MADOFF: HSBC Going Up on Appeal With JPMorgan BERNARD L. MADOFF: Picard Sues Credit Suisse for $375MM BP CLOTHING: Files for Bankruptcy Protection CAPARRA HILLS: Fitch Affirms 'BB' Issuer Default Rating CB HOLDING: Charlie Brown's Seeks Fourth Exclusivity Extension CLARE AT WATER: Agrees that Escrow Agent Pay Authority Claims CLEAR CHANNEL: Board OKs Indemnification Pacts with Executives CONTINENTAL COMMON: Reorganization Plan Declared Effective CORDIA COMMUNICATIONS: U.S. Trustee Wants Examiner Appointed DEAN FOODS: Fitch Affirms Junk Rating on Senior Unsecured Debt DESERT GARDENS: U.S. Trustee Unable to Form Committee DESMARAIS ENERGY: Creditors OK Proposed Debt Restructuring DETROIT, MI: To Sell $493M Municipal Bond as State Takeover Looms DETROIT, MI: Fitch Puts 'BB-' ULTGO Bond Ratings on Watch Neg. DIPPIN' DOTS: Seeks to Employ Harpeth Capital as Broker DIPPIN' DOTS: Court OKs Farmer & Wright as Bankruptcy Counsel DALLAS ROADSTER: Voluntary Chapter 11 Case Summary DRINKS AMERICAS: Incurs $384,000 Net Loss in Oct. 31 Quarter ECO SOLAR: Case Summary & 12 Largest Unsecured Creditors EDWARD DEETS: Section 341(a) Meeting Scheduled for Jan. 27 EMPRESAS INTEREX: Hires Cuprill Law Office as Bankr. Counsel EMPRESAS INTEREX: Sec. 341 Creditors' Meeting Set for Jan. 13 FILENE'S BASEMENT: Committee Taps Richard Layton as Co-Counsel FILENE'S BASEMENT: Committee Hires Munger Tolles as Counsel FILENE'S BASEMENT: Syms Equity Committee Defends Right to Exist FIRST STREET: Wins OK to Hire Macdonald & Associates as Attorneys FORMATECH, INC: Cancer Drug Formulation Needs to be Redone FRIENDLY ICE CREAM: Section 341(a) Meeting Scheduled for Jan. 17 FRIENDLY ICE CREAM: Wells Fargo Says No Rivals Stepping Up to Bid GELT PROPERTIES: Court OKs Craig Howe as Committee's Accountants GRAND CANYON EQUITY: Buffalo Wild Wings Wins TRO for Trademark GREEN ENDEAVORS: Files Form S-8, Registers 300MM Common Shares GREEN PLANET: Amends Sept. 30 Form 10-Q to Correct "Typo" Errors HARRISBURG, PA: McKenna Long Provides Counsel to Receiver HARRISBURG, PA: Judge Declines to Reverse Dismissal Ruling HUBBARD PROPERTIES: IWA Secured Claim Paid Over 15-Year Period IEDA ENTERPRISE: Voluntary Chapter 11 Case Summary IMAGINART LLC: Case Summary & 20 Largest Unsecured Creditors INTEGRATED ENVIRONMENTAL: Engages TrueLogix to Sell EcaFlo INT'L ENVIRONMENTAL: Wants Case Reopened to Accept Sale Offer JAMES RIVER: Wellington Management Discloses 1.3% Equity Stake JAMESON INNS: Section 341(a) Meeting Continued to Jan. 12 KOREA TECHNOLOGY: Examiner Can Hire Piercy Bowler as Accountants L.A. DODGERS: Files Amended Schedules of Assets and Liabilities L.A. DODGERS: Win Right to Auction Off Television Rights LAGUARDIA ASSOCIATES: Hotel Operator Faces Involuntary Bankruptcy LAGUARDIA ASSOCIATES: Court Keen on Collecting Full Filing Fee LA VILLITA: Plan to Pay Unsec. Creditors Over 3-Year Period LEE ENTERPRISES: Hires Garden City Group as Noticing Agent LEE ENTERPRISES: Can Keep Spending as it Races to Exit Ch. 11 LENOX 126: Will Seek Confirmation of Plan at Dec. 20 Hearing MAIN AERIAL: Case Summary & 18 Largest Unsecured Creditors MAJESTIC CAPITAL: Plan Contemplates Orderly Wind-Down of Debtors MARKWEST ENERGY: Fitch Says Stake Acquisition Won't Affect Rating MERIT GROUP: Will Seek Approval of Liquidating Plan Tomorrow MIRAMAR REAL ESTATE: C. Agosto and FVP & Galindez OK'd as Auditors MULHEARN REALTORS: Case Summary & 20 Largest Unsecured Creditors NATIONAL ALARM: Case Summary & 4 Largest Unsecured Creditors NBOR CORPORATION: Involuntary Chapter 11 Case Summary NORTEL NETWORKS: Gets CCAA Extension Until April 13 NORTON PROPERTY: Case Summary & 4 Largest Unsecured Creditors ODYSSEY DP: Case Summary & 4 Largest Unsecured Creditors OXLEY DEVELOPMENT: U.S. Trustee Asks Court to Dismiss Case OXLEY DEVELOPMENT: Court OKs William Orange III as Bankr. Counsel PARADISE HOSPITALITY: Files Schedules of Assets and Liabilities PENINSULA HOSPITAL: U.S. Trustee Wants Ch. 11 Trustee to Take Over PLATINUM OIL: Court Won't Reconsider Ruling on Jicarilla Leases PLATINUM PROPERTIES: Wants Plan Filing Period Extended to April 19 PMI GROUP: U.S. Trustee Unable to Form Committee PMI GROUP: Auction Determines Credit-Default Swaps Payouts PRM SMITH: Seeks to Hire Benjamin Currence as Litigation Counsel PT ARPENI PRATAMA: Seeks Creditor Projection in the U.S. PURE BEAUTY: Creditors Have Until Jan. 13 to File Proofs of Claim QUALTEC INC: Court Approves Crowe Horwath as Accountants QUALTEC INC: Can Hire FocalPoint Securities as Investment Banker QUINCY MEDICAL: Ombudsman Wants PCO Responsibilities Discharged RADIAN GROUP: Unit Releases Delinquency Data for November RCR PLUMBING: Proposes Kurtzman Carson Consultants as Claims Agent R.E. LOANS: Court Approves Akin Gump as Committee's Counsel R.E. LOANS: Court OKs FTI as Committee's Financial Advisors R.E. LOANS: Court Approves Alixpartners as Noticing Agent REAL MEX: Court Approves Kelley Drye as Committee's Counsel REAL MEX: Court Approves Cole Schotz as Committee's Co-Counsel REPLICEL LIFE: Posts C$890,700 Net Loss in Third Quarter RIVER ROAD: Lenders' Chapter 11 Plan Declared Effective ROOMSTORE INC: Files Ch. 11 to Facilitate Reorganization Efforts SEAHAWK DRILLING: Trustee to Compromise & Settle Adv. Proceeding SIGNATURE STYLES: Will Seek Plan Confirmation at Dec. 21 Hearing SINO FOREST: To Skip Interest Payment Due Thursday SMITH CREEK: Sec. 341(a) Creditors' Meeting Set for Jan. 17 SOLYNDRA LLC: Wants Lease Decision Period Extended Until April 2 SOUTHERN MONTANA: Trustee Seeks to Hire H&B as Counsel SOUTHERN MONTANA: Trustee Wants Waller & Womack as Local Counsel SP NEWSPRINT: Section 341(a) Meeting Scheduled for Jan. 9 SPECTRAWATT INC: Unsecured Trade Creditors To Get 12% Recovery T.J.E. LLC: Case Summary & 20 Largest Unsecured Creditors TN-K ENERGY: Closes Sale Agreement with K&K for $910,000 VAN ZANT: Case Summary & 4 Largest Unsecured Creditors ULTIMATE ESCAPES: Wins Confirmation of Liquidating Plan WASHINGTON LOOP: Trustee Seeks to Retain JRS CPA as Accountants WASHINGTON LOOP: Trustee Seeks to Hire Doughlas Wilson as Broker WASHINGTON LOOP: Trustee Seeks to Retain Insider as Consultant WINDOW FACTORY: Involuntary Chapter 11 Case Summary WYSTERIA LLC: Section 341(a) Meeting Continued Until Jan. 3 XTL BIOPHARMACEUTICALS: Posts $337,000 Net Loss in Third Quarter ZIONS BANCORP: Fitch Affirms Subordinated Debt Rating at 'BB+' * U.S. Trustee Can't Conduct Nationwide Probe * Recent Small-Dollar & Individual Chapter 11 Filings ********* 216 WEST 18: Court OKs Bryan Cave as Bankruptcy Counsel ------------------------------------------------------- 216 West 18 Owner LLC, 216 West 18 Mezz LLC and 216 West 18 Holder LLC obtained the Bankruptcy Court's approval to employ Bryan Cave LLP as their attorneys. Bryan Cave received a retainer of $50,000 from the Debtors in connection with the preparation and commencement of the Chapter 11 cases, all of which has been applied against Bryan Cave's charges for prepetition services. Currently, hourly rates of partners for Bryan Cave range from $375 to $875. Hourly rates for associates and counsel range from $200 to $725. The hourly rates charged for Bryan Cave legal assistants range from $75 to $305. About 216 West 18 216 West 18 Owner LLC, 216 West 18 Mezz LLC and 216 West 18 Holder LLC own a parcel of improved real estate at 218 West 18th Street in New York. 216 West 18 Owner is wholly owned by 216 West 18 Mezz. Mezz is wholly owned by 216 West 18 Holder LLC. Holder is owned 94.2% by HAJ 18 LLC and 5.8% by JK 18 LLC. HAJ 18, wholly owned by Harry Jeremias, is the managing member of Holder. The 216 West 18 entities do not have any employees. The 216 West 18 entities, through their restructuring officer, Steven A. Carlson, filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case Nos. 11-15110 to 11-15112) on Nov. 1, 2011. In its petition, 216 West 18 Owner estimated $50 million to $100 million in both assets and debts. The Debtors filed for bankruptcy to implement a prepackaged plan of liquidation originally proposed by Atlas Capital Group LLC. The Plan provides for the transfer of the Mortgaged Property to their mortgage lender. Atlas is represented by Greenberg Traurig LLP. HAJ 18 LLC is represented by Herrick Feinstein LLP. The mortgage lender, 216 West 18 Lender, an affiliate of Fishman Holdings North America, is represented by Alston & Bird LLP. A & F SERVICE: Case Summary & 4 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: A & F Service Center, L.L.C. 1805 Blanton Mill Road Griffin, GA 30224 Bankruptcy Case No.: 11-85402 Chapter 11 Petition Date: December 7, 2011 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Judge: C. Ray Mullins Debtor's Counsel: Cameron M. McCord, Esq. JONES & WALDEN, LLC 21 Eighth Street, NE Atlanta, GA 30309 Tel: (404) 564-9300 Fax: (404) 564-9301 E-mail: cmccord@joneswalden.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 four largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ganb11-85402.pdf The petition was signed by Frank B. Flanders, manager. Affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Frank B. Flanders, Jr. 11-10364 02/01/11 ACJ TRUE: Case Summary & 18 Largest Unsecured Creditors ------------------------------------------------------- Debtor: ACJ True Grit LLC 71940 Baker Blvd. Baker, CA 92309 Bankruptcy Case No.: 11-47049 Chapter 11 Petition Date: December 8, 2011 Court: United States Bankruptcy Court Central District of California (Riverside) Debtor's Counsel: Patrick J D'Arcy, Esq. PATRICK J D'ARCY, A PROFESSIONAL LAW COR 1 Park Plaza Ste 380 Irvine, CA 92614-3524 Tel: (949) 988-7640 Fax: (949) 616-0616 E-mail: pat@patricklaw.net Scheduled Assets: $2,965,000 Scheduled Debts: $1,705,762 A list of the Company's 18 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb11-47049.pdf The petition was signed by Joni Jacobson, managing member of LLC. AHNO LLC: Court Confirms Exit Plan for Ambassador Hotel ------------------------------------------------------- Bankruptcy Judge Jerry A. Brown confirmed the Amended Chapter 11 Plan of Reorganization dated April 12, 2011, filed by AHNO, LLC, doing business as Ambassador Hotel. Judge Brown also held that all modifications to the April 12 Plan are immaterial. A copy of the Court's Dec. 12, 2011 Findings of Fact and Conclusions of Law is available at http://is.gd/cyOJqKfrom Leagle.com. Four creditors, asserting $24,487 in claims, commenced an involuntary Chapter 11 bankruptcy petition (Bankr. E.D. La. Case No. 10-10706) on March 9, 2010, against New Orleans-based AHNO LLC. The petitioning creditors are Mark Kelley, New Media Solutions, Inc., Dessus Management, and Destination Management Inc. They are represented by William E. Steffes, Esq. -- bsteffes@steffeslaw.com -- at Steffes Vingiello & McKenzie LLC as bankruptcy counsel. The Debtor is represented by Jan Marie Hayden, Esq. -- jhayden@hellerdraper.com -- at Heller Draper Patrick & Horn LLC as counsel. An order for relief was entered on May 24, 2010. ALANCO TECHNOLOGIES: Posts $305,600 Net Loss in Sept. 30 Quarter ---------------------------------------------------------------- Alanco Technologies, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $305,600 on $0 revenue for the three months ended Sept. 30, 2011, compared with a net loss of $1.3 million on $0 revenue for the three months ended Sept. 30, 2010. The Company's balance sheet at Sept. 30, 2011, showed $6.1 million in total assets, $464,000 in total current liabilities, $1.2 million in Preferred Stock - Series B Convertible, and stockholders' equity of $4.4 million. A copy of the Form 10-Q is available for free at: http://is.gd/Ln7SHp About Alanco Technologies Headquartered in Scottsdale, Arizona, Alanco Technologies, Inc. -- was, at June 30, 2011, effectively a holding company without operating entities. The Company believes that status to be temporary and has stated its objective to complete an appropriate merger (possibly a reverse merger) and again become an operating publicly traded company. The Company is currently in the process of evaluating potential transactions. In previous SEC filings, Alanco reported three business segments: Data Storage, Wireless Asset Management and RFID Technology. * * * As was discussed in the Company's Form 10-K for the year ended June 30, 2011. the Company is continuing its investigation of various possible business combinations. "However, there is no assurance that we will be able to arrange or consummate a successful business combination which would allow us to continue as a going concern." AMBASSADORS INT'L: Creditors Give Up on Whippoorwill Lawsuit ------------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the former owner of Windstar Cruises won't be emerging from Chapter 11. According to the report, the case will be dismissed or converted to a liquidation in Chapter 7 following a settlement with secured creditor Whippoorwill Associates Inc. Windstar's three luxury sailing yachts were sold to Anschutz Corp. for $35 million in cash. Mr. Rochelle recounts that the official committee of unsecured creditors had sued Whippoorwill, contending it controlled Windstar, fabricated the basis for an otherwise unnecessary Chapter 11 filing, and arranged the sale so the price would be enough to cover the debt it was owed plus counsel fees, "but not a dollar more." The report relates that under the settlement, Whippoorwill will provide $500,000 toward payment of professional fees. Whippoorwill will release claims against the company and in return will receive a release of claims and dismissal of the committee's lawsuit. The settlement will come up for approval on Jan. 4 in U.S. Bankruptcy Court in Delaware. The company, Mr. Rochelle relates, admitted there was insufficient cash remaining to pay outstanding professionals' bills, let alone fund continuation of the lawsuit against Whippoorwill. The settlement precludes Whippoorwill from objecting to the payment of lawyers' and other professionals' fees. According to Mr. Rochelle, the settlement resulted in part from Whippoorwill's contention that lawyers already received more in fees than was permitted in the loan documents carving out $2.4 million for professionals. Whippoorwill took the position that the professionals were liable to disgorge some of what they were paid so the funds could be used to discharge debt owing to the lender. 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. AS SEEN ON TV: Enters Into Contractor Agreement with Stratcon ------------------------------------------------------------- As Seen On TV, Inc., through its wholly owned subsidiary, TV Goods, Inc., entered into an independent contractor agreement with Stratcon Partners, LLC, pursuant to which Stratcon has agreed to provide the Company consulting and advisory services, including, but not limited to business marketing, management, budgeting, financial analysis, and investor and press relations. Under the agreement, Stratcon is also required to establish and maintain executive facilities and a business presence in New York City for the Company. The agreement is for an initial term of two years and may be terminated by either party upon written notice. In consideration of providing the services, Stratcon will receive $12,500 per month. In addition, the Company has agreed to issue Stratcon an aggregate of 500,000 shares of restricted common stock, those shares vesting over a period of two years from the Effective Date in four equal traunches. The closing price of the Company's common stock as reported on the OTC Markets on the Effective Date was $1.00. The Company has agreed to provide Stratcon rent reimbursement up to $2,500 per month for the New York office. About As Seen on TV Clearwater, Fla.-based As Seen On TV, Inc., is a direct response marketing company. The Company identifies, develops, and markets consumer products. The Company's strategy employs three primary channels: Direct Response Television (Infomercials), Television Shopping Networks and Retail Outlets. The Company's balance sheet at Sept. 30, 2011, showed $3.5 million in total assets, $13.9 million in total current liabilities, and a stockholders' deficit of $10.4 million. EisnerAmper LLP, in Edison, New Jersey, expressed substantial doubt about H&H Imports' 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 of the Company's recurring losses from operations and negative cash flows from operations. BANKS HOLDING: Court to Hear RBC Dismissal Motion on Dec. 21 ------------------------------------------------------------ Royal Bank of Canada asks the U.S. Bankruptcy Court for the Western District of North Carolina to convert Banks Holding Company, L.P.'s Chapter 11 case to one under Chapter 7 of the Bankruptcy Code or, alternatively, dismiss the case for cause, pursuant to 11 U.S.C. Section 1112(b). The Court will consider the motion at a hearing on Dec. 21, 2011, at 9:30 a.m. RBC is the holder of a debt instrument executed by the Debtor on or about July 19, 2007, in the original principal amount of $500,000. The Note is secured by a Pledge and Security Agreement for account number xxxx-xxxx-2634. RBC tells the Court that pursuant to the Chapter 11 Operating Order entered on March 21, 2011, the Debtor was to file its Plan of Reorganization on or before July 16, 2011, but, to date, had not filed its Plan. Counsel for Royal Bank of Canada may be reached at: David M. Warren, Esq. POYNER SPRUILL LLP Post Office Box 1801 Raleigh, NC 27602-1801 Tel: (919) 783-6400 Burnsville, North Carolina-based Banks Holding Company, L.P., filed for Chapter 11 bankruptcy protection (Bankr. W.D. N.C. Case No. 11-10258) on March 18, 2011. The Debtor's principal is Randy Banks. In its schedules, the Debtor disclosed $28,047,029 in total assets and $7,385,010 in liabilities. Edward C. Hay, Jr., Esq., at Pitts, Hay & Hugenschmidt, P.A., serves as the Debtor's bankruptcy counsel. BERNARD L. MADOFF: HSBC Going Up on Appeal With JPMorgan -------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that HSBC Holdings Plc can join JPMorgan Chase & Co. and UBS AG in appeals of decisions dismissing most of the lawsuits brought by the trustee liquidating Bernard L. Madoff Investment Securities Inc., a judge ruled. According to the report, U.S. District Judge Jed Rakoff insinuated that he may not permit an appeal at this time of his dismissal of the better part of the Madoff trustee's $1 billion suit against Fred Wilpon and the owners of the New York Mets baseball club. The report relates that in July, Rakoff dismissed most of the Madoff trustee's $9 billion suit against London-based HSBC. In November, U.S. District Judge Colleen McMahon dismissed most of the trustee's $19 billion suit against New York-based JPMorgan. She also threw out most of the suit against UBS. According to the report, the two judges dismissed the suits on the same grounds. The judges accepted the banks' arguments that the claims underlying the trustee's suits could only be brought by individual Madoff creditors, not by the trustee. Mr. Rochelle notes that Irving Picard, the Madoff trustee, couldn't appeal immediately because neither judge dismissed all of the lawsuits. To remedy the bar to appeal, McMahon previously entered a separate final judgment in the JPMorgan case, allowing Mr. Picard to appeal to a U.S. Court of Appeals. At the request of HSBC, Judge Rakoff did the same by entering a final judgment of dismissal so Mr. Picard can appeal. Although HSBC had won dismissal, it wanted to have its case heard at the same time as JPMorgan's in the appeals court. It "makes sense" to have the appeals together because there is no "immediately pending" trial on the remaining claims against HSBC, Jude Rakoff said in handwritten comments in the order, according to the report. Judge Rakoff, the report relates, said the HSBC case lacked "other factors that might lead the court to deny such relief" with regard to Mr. Picard's suit against Mr. Wilpon and the Mets owners. When Rakoff knocked out about $700 million of the $1 billion in claims, he scheduled a jury trial for the Wilpon case in March. Judge Rakoff said that he's still considering whether to allow an appeal from his decision that Mr. Picard can only sue to recover fictitious profits that customers took out within two years of the Madoff firm's bankruptcy. Mr. Picard wanted to go back six years in disgorging bogus profits. Mr. Picard argued in papers to Rakoff that he should allow an immediate appeal because another district judge disagreed with Rakoff's conclusion that suits can only look back two years. Until there is a resolution of the question, hundreds of suits by the trustee against customers are in limbo. The HSBC suit in U.S. District Court is Picard v. HSBC Bank Plc, 11-763, U.S. District Court, Southern District of New York (Manhattan). The UBS suit in district court is Picard v. UBS AG, 11-04213, in the same court. The JPMorgan lawsuit in district court is Picard v. JPMorgan Chase & Co., 11-00913, in the same court. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.) As of July 15, 2011, a total of US$6.88 billion in claims by investors has been allowed, with US$794.9 million to be paid by the Securities Investor Protection Corp. Investors are expected to receive additional distributions from money recovered by Mr. Picard from lawsuits or settlements. Mr. Picard has filed 1,000 lawsuits seeking $100 billion from banks such as HSBC Holdings Plc and JPMorgan Chase & Co. The trustee has seen more than $28 billion of his claims tossed by district judges. BERNARD L. MADOFF: Picard Sues Credit Suisse for $375MM ------------------------------------------------------- Irving Picard, the bankruptcy trustee for Bernard L. Madoff's estate, filed a lawsuit late Monday in U.S. Bankruptcy Court for the Southern District of New York to recover $375 million from Credit Suisse Group AG and affiliates. Katy Stech, writing for Dow Jones' Daily Bankruptcy Review, reports Mr. Picard is accusing the bank of harboring money that belongs to the estate of Mr. Madoff's collapsed investment firm. Most of that money flowed to the bank through Fairfield Sentry Ltd., the biggest feeder of investor funds into Mr. Madoff's Ponzi scheme, according to the lawsuit. Other money went through Kingate Global, the lawsuit said. "While we are still reviewing the complaint, there is no allegation that [Credit Suisse] did anything wrong," Credit Suisse spokesman Steven Vames wrote in an e-mail, according to DBR. "This is simply another of the numerous claims the trustee has filed in an attempt to claw back further funds." Fairfield and Kingate are in liquidation proceedings. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.) As of July 15, 2011, a total of US$6.88 billion in claims by investors has been allowed, with US$794.9 million to be paid by the Securities Investor Protection Corp. Investors are expected to receive additional distributions from money recovered by Mr. Picard from lawsuits or settlements. Mr. Picard has filed 1,000 lawsuits seeking $100 billion from banks such as HSBC Holdings Plc and JPMorgan Chase & Co. The trustee has seen more than $28 billion of his claims tossed by district judges. BP CLOTHING: Files for Bankruptcy Protection -------------------------------------------- BP Clothing LLC filed for bankruptcy protection after weak sales forced it to abandon its licenses to sell Baby Phat and Fabulosity clothing lines. BP Clothing -- which sells women's apparel products in Walmart and other retailers and through site http://www.babyphat.com/-- estimated assets and debts of up to $100 million in its Chapter 11 petition (Bankr. S.D.N.Y. Case No. 11-15696). Kevin Weber, executive vice president and chief financial officer for BP Clothing, says that in recent years, due to a downturn in the economy and weakened consumer spending, the Debtor has been forced to terminate certain of "Baby Phat" licenses. The Debtor's business now primarily consists of selling inventory directly to Walmart under the Susie Rose trademark. BP Clothing, which has 42 employees, had gross revenue of $89 million in fiscal year ended 2010. Gross profit was $24.9 million during the period. Currently, the Debtor's main asset is its Susie Rose trademark. The sale of Susie Rose apparel inventory to Walmart comprises the bulk of the Debtor's ongoing business. In addition, the Debtor also has granted a license to a third party, SME Consolidated, to manufacture and sell bags under the Susie Rose trademark. The Debtor receives royalties in the aggregate of 5% on net sales under this license agreement. The Debtor is highly leveraged, with a total of $93.94 million in prepetition financial debt, as of Nov. 30, 2011. The Debtor seeks to effectuate a proposed restructuring that will substantially reduce debt and enhance the Debtor's liquidity, as well as solidify the Debtor's long-term growth prospects and operating potential. The Debtor intends to emerge from bankruptcy quickly, and hopes to maintain a viable and competitive business going forward. The Debtor has negotiated a "plan support agreement" with lenders. Under the agreement, the lenders will support the plan if certain milestone deadlines are achieved. Under the Plan, debt to senior lenders will be converted to stock of the reorganized company. Holders of general unsecured claims and interest holders won't receive anything. CAPARRA HILLS: Fitch Affirms 'BB' Issuer Default Rating ------------------------------------------------------- Fitch Ratings has affirmed Caparra Hills, Inc.'s (Caparra Hills). 'BB' Issuer Default Rating (IDR), Fitch has also affirmed the company's US$59.3 million secured bonds rating at 'BBB-'. The secured bonds are payable solely from payments made to The Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority (AFICA) by Caparra Hills. AFICA serves solely as an issuing conduit for local qualified borrowers for purpose of issuing bonds pursuant a trust agreement between AFICA and a trustee. The secured bonds are not guaranteed by AFICA, do not constitute a charge against the general credit of AFICA, and do not constitute an indebtedness of the Commonwealth of Puerto Rico or any of its political subdivisions. The Rating Outlook is Stable. The ratings reflect the stable cash flow generated by the company's lease portfolio, which passes the vast majority of its operating expenses on to its tenants. Caparra Hills' properties have relatively low vacancy rates and solid collateral values backing its secured debt. The ratings are also supported by the company's manageable debt maturity schedule, adequate cash position of US$5.7 million and stable EBITDA margins of over 60% during the last five years ended Sept. 30, 2011, which result in adequate debt service coverage ratios. Also factored in the ratings is Caparra Hills' capacity to generate consistently positive free cash flow (FCF) with an average FCF margins around 19% during the last four years ended September 2011. The 'BBB-' rating for the secured bonds positively incorporates the collateral support included in the transaction structure as the payments of the bonds are secured by a first mortgage on the company's real estate properties and an assignment of leases. In addition, the ratings consider as part of the transaction structure the inclusion of a debt-service reserve fund permanently covering an equivalent of 18-month debt service related to the secured bonds, by the end of September 2011 the total amount in the reserve fund was USD7 million. The Stable Outlook reflects Caparra Hills' consistent and stable operating performance and its track record of maintaining positive free cash flow, stable leverage and solid liquidity during the last several years. Fitch would consider a negative rating action if deterioration in the company's financial profile occurs, leading to weaker credit metrics resulting from declining revenues coupled with significant distributed dividends and increasing vacancy rates that would move the company's capital structure away from the levels Fitch understands to be compatible with the rating category assigned. Stable and Predictable Results: The ratings incorporate Caparra Hills' stable revenues stream from its lease portfolio and adequate credit profile of its main tenants. The lease revenues are predominately fixed in nature and also provide for the pass-through of ongoing maintenance and operating expenses for Caparra Hills' properties, which lowers business risk. The company's lease portfolio has an adequate maturity profile with staggered expirations of 17.2% and 6.7% of its rental income expiring in the next 12 and 24 months, respectively. About 10.8% of Caparra Hills' rental income contracts have expiration dates over the next 24-48 months, while 66.4% of the portfolio expires beyond 48 months. Caparra Hills' revenues structure is mostly based on fixed rent, which represent about of 60% total revenues, making the company's revenues very predictable. The other significant component in Caparra Hills' revenue structure is tenant reimbursements, which represent about of 25% of total revenues, covering costs associated with property management and taxes. Incorporated in the ratings is the company's tenant concentration risk. Caparra Hills' five most important anchor tenants are University of Phoenix, Banco Santander, General Electric Consumer Fin., United Surety & Indemnity Co, and Kimberly Clark Corp. These tenants generate annual revenues of about US$6.2 million and represent approximately 60% of the company's total annual rent revenues. Due to challenging operating environment during the last three years, Caparra Hills' vacancy rates have deteriorated as it increased from 4% to 8.6% during the last two years ended in September 2011. Solid Liquidity Expected to Continue: Caparra Hills' liquidity position is solid resulting from its capacity to consistently generate positive cash flow from operations (CFFO) and its good credit access. During the last three years, Caparra Hills' CFFO reached an annual average of US$3.6 million. By the end of September 2011, Caparra Hills' cash position was US$5.7 million. In addition, the company maintains a debt service reserve fund of approximately US$7 million covering 18 months of debt service. Excluding the reserve fund, the company's maintains liquidity that represents approximately 51% of Caparra Hills' LTM revenue (US$11.3 million) and 4.5 times (x) the company's short-term debt (US$1.3 million) by the end of September 2011. In addition, Caparra Hills maintains US$1 million available in unused committed bank credit facility. The ratings incorporate the view that Caparra Hills will maintain a solid liquidity, with a cash position above 30% the company's revenue and more than 2x its short-term debt on a consistent basis. A Positive Free Cash Flow Business: The ratings factor in a continued trend in the company's free cash flow, which has been positive during the last five years. For the LTM period ended September 2011, FYE June 2010, and FYE June 2009, Caparra Hills' free cash flow was positive reaching levels of US$2.3 million; US$2.2 million; and, US$ 2.0 million, respectively. Caparra Hills' free cash flow is expected to continue to be positive during the next following years due to the company's stable cash flow from operations, low level of capital expenditures (approximately US$0.3 million per year), and level of dividends of approximately in the US$0.8 million to US$1.5 million range that Caparra Hills is planning to distribute per year. Factored into the ratings is the view that Caparra Hills does not plan to execute any major investments that could place additional pressure in its cash flow. Adequate Leverage, Manageable Debt Schedule A Positive: By the end of September 2011, Caparra Hills' total debt was US$59.3 million. This compares to US$50.7 million by the end of June 2010. The increase in the company's total debt reflects the proceeds the company took to implement the reserve fund of US$7 million during the debt refinancing completed early this year. By the end of September 2011, Caparra Hills' debt was composed entirely by US$59.3 million secured bonds. The company does not maintain any off-balance debt associated with operating leases obligations. Caparra Hills' EBITDA margin was 63% by the end of September 2011, which has been in line with the company's average EBITDA margin for the last three years (2010-2008) of 62%. Caparra Hills' net leverage, as measured by net debt/EBITDA, was 7.6x by the end of September 2011, higher than the levels of 5.8x at the end of June 2010. Considering the reserve fund, the company's adjusted leverage is estimated at 6.6x. The ratings incorporate the expectation that Caparra Hills' net leverage will remain stable. Positively factored into the ratings is Caparra Hills' manageable debt maturity schedule. The company faces debt principal payments of US$1.3 million, US$1.3 million, and US$1.4 million during FY2012, FY2013, and FY2014, respectively. Main Credit Concerns: The ratings are constrained by the negative business environment and the concentration risk affecting Caparra Hills' operations. The ratings incorporate the negative business environment affecting the economy of Puerto Rico, which has been in recession since the fourth quarter of FY 2006. Additionally, the ratings factor the concentration risk in Caparra Hills' operations related to three contiguous properties, which limits the company's diversification and growth strategies. Further, Caparra Hills' operations are highly dependent from its main tenants, with five tenants representing approximately 60% of the company's total revenues. The concentration risk is counter balanced by the adequate credit profile of Caparra Hills' main tenants and the company's good track-record of maintaining positive FCF and solid liquidity. Negatively incorporated in the ratings is Caparra Hills' high dividend payout ratio. During the last five years, ended in fiscal 2011, Caparra Hills has distributed more than US$4.6 million in dividends, and the company expects to maintain a dividend payout ratio of approximately 60% to 80% over its excess of cash flow for the next years. Caparra Hills conducts its operations in Puerto Rico, which Fitch views as a positive in terms of enforceability of the company's secured debt in the event of default. The relationship between the United States and Puerto Rico is referred to as commonwealth status. Puerto Rico's constitutional status is that of a territory of the United States, and, pursuant to the territorial clause of the U.S. Constitution, the ultimate source of power over Puerto Rico is the U.S. Congress. CB HOLDING: Charlie Brown's Seeks Fourth Exclusivity Extension -------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that although the former operator of Charlie Brown's Steakhouse restaurants said the end of the case "is near," the company is seeking a fourth extension of the exclusive right to propose a liquidating Chapter 11 plan. If approved by the bankruptcy judge in Delaware at a Dec. 21 hearing, the new exclusivity deadline will be pushed out by three months to Feb. 8. The report relates that the liquidating Chapter 11 plan was filed in August. The hearing for approval of the explanatory disclosure statement is now on the calendar for Dec. 21, after several postponements. The company completed sales of the three branches of the business between April and July. The plan is designed to distribute proceeds according to the priorities in bankruptcy law. 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 and its affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 10-13683) on Nov. 17, 2010. After filing for Chapter 11, CB Holding sold 20 Charlie Brown's locations for $9.5 million. The 12 remaining Bugaboo Creek stores realized $10.05 million while the seven The Office Restaurants produced $4.675 million. 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. At the outset of the Chapter 11 case, the lenders were owed $70.2 million. CLARE AT WATER: Agrees that Escrow Agent Pay Authority Claims ------------------------------------------------------------- The Clare at Water Tower asks the U.S. Bankruptcy Court for the Northern District of Illinois to approve a stipulation providing that a certain indemnity escrow fund is not property of the Debtor's bankruptcy estate. The stipulation was entered among Illinois Finance Authority and The Bank of New York Mellon Trust Company, N.A., as escrow agent. The Debtor relates that on July 15, 2010, in connection with the issuance of certain tax-exempt bonds, the Authority, the Debtor, and the escrow agent entered into the Indemnification Escrow Agreement. The parties' execution of the Indemnification Escrow Agreement was a condition precedent to the Authority's issuance of the "Series 2010 Bonds" and provided for the establishment of a $750,000 "Indemnity Escrow Fund" as security for the indemnification obligations of the Debtor to the Authority under a Loan Agreement dated as of July 1, 2010 related to the Series 2010 Bonds. The Indemnity Escrow Fund/Account, which is under the sole control and dominion of the escrow agent, is available for payment of claims asserted by the Authority and certain "Authority Indemnified Parties" for indemnification and reimbursement of reasonable costs and expenses, including reasonable counsel fees. To date, the Authority has submitted to the escrow agent several claims for reimbursement of attorneys' fees from the Indemnity Escrow Fund in accordance with the terms of the Indemnification Escrow Agreement. The Authority, the Debtor and the escrow agent agree that the Indemnity Escrow Fund is a true escrow and therefore not property of the Debtor's bankruptcy estate even though the Debtor has a contingent interest in the funds. Out of an abundance of caution, however, and to ensure that any interested party has an opportunity to assess the nature of the escrow, the escrow agent has requested that the Authority file the motion for entry of the Agreed Order prior to payment of the Authority's indemnification claims. The Authority is represented by: Steven B. Towbin, Esq. Gordon E. Gouveia, Esq. SHAW GUSSIS FISHMAN GLANTZ WOLFSON & TOWBIN LLC 321 North Clark Street, Suite 800 Chicago, IL 60654 Tel: (312) 541-0151 Fax: (312) 980-3888 E-mail: stowbin@shawgussis.com ggouveia@shawgussis.com About The Clare at Water Tower The Clare at Water Tower is an upscale 334-unit high-rise continuing-care retirement community in Chicago, Illinois. The project is only 42% occupied because the target population either hasn't been able to sell homes or lacks sufficient cash to make required deposits as the result declining investments following the recession. The facility is a 53-story building on land rented from Loyola University of Chicago. The facility is managed and developed by a unit of the Franciscan Sisters of Chicago, who invested more than $14 million. The project opened in December 2008. Residents must make partially refundable deposits ranging from $263,000 to $1.2 million. Monthly fees are an additional $2,700 to $5,500. The Clare filed for Chapter 11 protection (Bankr. N.D. Ill. Case No. 11-46151) on Nov. 14, 2011, after defaulting on $229 million in tax-exempt bond financing used to build the project. Judge Susan Pierson Sonderby presides over the case. Matthew M. Murphy, Esq., at DLA Piper LLP, serves as the Debtor's counsel. Epiq Bankruptcy Solutions serves as claims and noticing agent. In its petition, the Debtor estimated $100 million to $500 million in assets and debts. The petition was signed by Judy Amiano, president. Counsel to Redwood Capital Investments LLC as DIP Lender are Mark A. Berkoff, Esq., and Nicholas M. Miller, Esq., at Neal Gerber & Eisenberg LLP. Bond Trustee, The Bank of New York Mellon Trust Company, is represented by Clifton R. Jessup, Jr., Esq., at Greenberg Traurig. Counsel to Bank of America, N.A., the Debtor's prepetition lender, is Brian I. Swett, Esq., at Winston & Strawn LLP. Counsel for the majority fixed rate bonds is Nathan F. Coco, Esq., at McDermott Will & Emery LLP. Loyola, the Debtor's landlord, is represented by Timothy R. Casey, Esq., at Drinker Biddle & Reath LLP. The United States Trustee in Chicago appointed seven members to the official committee of unsecured creditors. CLEAR CHANNEL: Board OKs Indemnification Pacts with Executives -------------------------------------------------------------- The Board of Directors of Clear Channel Outdoor Holdings, Inc., an indirect subsidiary of Clear Channel Communications, Inc., approved the Company entering into Indemnification Agreements with Thomas W. Casey, the Company's Executive Vice President and Chief Financial Officer and a member of the Company's Office of the Chief Executive Officer, and Robert H. Walls, Jr., the Company's Executive Vice President, General Counsel and Secretary and a member of the Company's Office of the Chief Executive Officer. Messrs. Casey and Walls also serve as Executive Vice President and Chief Financial Officer and Executive Vice President, General Counsel and Secretary, respectively, of the Company's indirect parent entities, CC Media Holdings, Inc., and Clear Channel Communications, Inc. The Indemnification Agreements provide substantially the same benefits as provided to the Company's affiliate directors under the previously disclosed Affiliate Director Indemnification Agreements. The Indemnification Agreements provide that the Company will indemnify and hold harmless each person subject to an Indemnification Agreement to the fullest extent permitted by applicable law from and against all losses, costs, liabilities, judgments, penalties, fines, expenses and other matters that may result or arise in connection with such Indemnified Party serving in his or her capacity as an officer of the Company or serving at the request of the Company as a director, officer, employee, fiduciary or agent of another entity. The Indemnification Agreements further provide that, upon an Indemnified Party's request, the Company will advance expenses to the Indemnified Party to the fullest extent permitted by applicable law. Pursuant to the Indemnification Agreements, an Indemnified Party is presumed to be entitled to indemnification and the Company has the burden of proving otherwise. The Indemnification Agreements also require the Company to maintain in full force and effect liability insurance on the terms described in the respective Indemnification Agreements. If indemnification under the Indemnification Agreements is unavailable to an Indemnified Party for any reason, the Company, in lieu of indemnifying the Indemnified Party, will contribute to any amounts incurred by the Indemnified Party in connection with any claim relating to an indemnifiable event in such proportion as is deemed fair and reasonable in light of all of the circumstances to reflect the relative benefits received or relative fault of the parties in connection with such event. About CC Media and Clear Channel San Antonio, Tex.-based CC Media Holdings, Inc. (OTC BB: CCMO) -- http://www.ccmediaholdings.com/-- is the parent company of Clear Channel Communications, Inc. CC Media Holdings is a global media and entertainment company specializing in mobile and on- demand entertainment and information services for local communities and premier opportunities for advertisers. The Company's businesses include radio and outdoor displays. CC Media has three reportable business segments: Radio Broadcasting; Americas Outdoor Advertising; and International Outdoor Advertising. Approximately half of CC Media's revenue is generated from its Radio Broadcasting segment. The Company reported a net loss of $462.8 million on $5.866 billion of revenue for the fiscal year ended Dec. 31, 2010, compared with a net loss of $4.049 billion on $5.552 billion of revenue for the fiscal year ended Dec. 31, 2009. The Company also reported a net loss of $259.06 million on $4.50 billion of revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $416.42 million on $4.23 billion of revenue for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $16.51 billion in total assets, $23.96 billion in total liabilities and a $7.45 billion total member's deficit. * * * CC Media Holdings carries 'CCC+' issuer credit ratings from Standard & Poor's. Clear Channel Carries a 'Caa2' corporate family rating from Moody's Investors Service and an issuer default rating of 'CCC' from Fitch Ratings. Fitch said in November 2010, that its ratings concerns center on the company's highly leveraged capital structure, with significant maturities in 2014 and 2016; the considerable interest burden that pressures free cash flow generation; technological threats and secular pressures in radio broadcasting; and the company's exposure to cyclical advertising revenue. The ratings are supported by the company's leading position in both the outdoor and radio industries, as well as the positive fundamentals and digital opportunities in the outdoor advertising space. In February 2011, Standard & Poor's affirmed it 'CCC+' corporate credit rating and positive outlook on CC Media Holdings and operating subsidiary Clear Channel, which S&P views on a consolidated basis. S&P said the 'CCC+' corporate credit rating on CC Media Holdings Inc. reflects the risks surrounding the longer-term viability of the company's capital structure--in particular, refinancing risk relating to sizable secured debt maturities in 2014 ($3.2 billion pro forma for the transaction) and 2016 ($10.4 billion). In S&P's view, the company has a satisfactory business risk profile, due to its position as the largest radio and global outdoor advertising operator, its good geographic and market diversity, and moderate long-term growth prospects at the outdoor business. S&P views the financial risk profile as highly leveraged, given the company's significant refinancing risk, roughly break-even EBITDA coverage of interest expense, and slim discretionary cash flow. CONTINENTAL COMMON: Reorganization Plan Declared Effective ---------------------------------------------------------- Continental Common, Inc., notified the U.S. Bankruptcy Court for the Northern District of Texas that the Effective Date of its Second Amended Joint Plan of Reorganization occurred on Dec. 1, 2011. On Oct. 6, 2011, the Court entered an order confirming the Plan filed by the Debtor, and PNC Bank, N.A., dated Oct. 4, 2011. As reported in the Troubled Company Reporter on Oct. 24, 2011, under the Joint Plan, the Reorganized Debtor will seek to market and sell each of the Properties under the direction of a third party real estate broker, provided that the remaining unpaid portion of any allowed secured claim for which the property being sold serves as Collateral will be paid in full at the time and all obligations under this Plan are satisfied in full. The proceeds will first be used to pay in full any allowed secured claim for which the property serves as collateral, including the allowed secured claims of PNC and any Taxing Authority holding a Lien in the Property. Upon the full satisfaction of any allowed secured claims holding a Lien in the property, any remaining proceeds will be distributed equally among Classes 1 through 9, subject to the subordination of the Claims of Transcontinental Realty Investors, Inc. (TCI), and Continental Common Lease Inc. to those of PNC. The Reorganized Debtor will use Net Cash Flow, funds received from TCI, funds on deposit in the Debtor's various debtor-in-possession bank accounts, collections of accounts receivable owed as of the Confirmation Date, funding from TCI, its designee, or any other entity, proceeds from sales or refinancing of the Properties, and any additional monies obtained by the Debtor, to fund the distributions required under the Plan to Classes 1, 2, 3, 5, 6, 7, 8, and 9. Distributions to Class 4 Claimants will be funded by Gross Revenue, funds received from TCI, funds on deposit in the Debtor's various debtor-in-possession bank accounts, collections of accounts receivable owed as of the Confirmation Date, funding from TCI, its designee, or any other entity, insurance loss proceeds or payments, any award or other payment made by any governmental unit or authority in conjunction with the exercise or any right of eminent domain or condemnation, any proceeds from any sale, refinancing, exchange, or other disposition of the Properties, any payments made on account of any easements or access rights granted by the Debtor which are not material to the operation of the Property, and any additional monies obtained by the Debtor. A full-text copy of the Second Amended Joint Plan Of Reorganization, dated Oct. 4, 2011, is available for free at: http://bankrupt.com/misc/CONTINENTALCOMMON_2ndamendedplan.pdf About Continental Common Dallas, Texas-based Continental Common, Inc., has primary assets consisting of various real estate holdings in multiple states. The Company filed for Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 10-37542) on Oct. 28, 2010. Melissa S. Hayward, Esq., at Franklin Skierski Lovall Hayward LLP, represents the Debtor. The Company disclosed $29,250,424 in assets and $25,150,836 in liabilities. The U.S. Trustee has not appointed creditors' committee or examiner in the case. CORDIA COMMUNICATIONS: U.S. Trustee Wants Examiner Appointed ------------------------------------------------------------ Donald F. Walton, U.S. Trustee for Region 21, asks the U.S. Bankruptcy Court for the Middle District of Florida to appoint an examiner in the Chapter 11 case of Cordia Communications Corp., et al. According to the U.S. Trustee, the Debtors have elected not to pursue estate assets potentially totaling in excess of $38,000,000. These assets consist of debts owed to the Debtors by related entities, potential fraudulent transfers from the Debtors to related entities and potential preference payments from the Debtors to related entities. Unless the estate pursues these assets, unsecured creditors will receive little or no distribution. The U.S. Trustee explains that the appointment of an examiner is necessary to determine whether these assets can be collected for the benefit of unsecured creditors. U.S. Trustee asserts that its intervention is necessary because Debtors' unsecured creditors are mostly taxing authorities, which serve the public interest and are ineligible to sit on a creditors' committee. The U.S. Trustee notes that the grand total of debts owed by non- debtor insiders to the Debtors and transfers from the Debtors to non-debtor insiders within 90 days is approximately $38,534,067. This amount exceeds the amount of assets available to creditors through the liquidation of Debtors' assets. The Debtors will sell or have sold substantially all of their assets to Birch Communications, Inc. pursuant to the Court's orders dated July 14, 2011 and Oct. 11, 2011. The UST estimates that, after executory contracts with Verizon and others are cured, the net proceeds of the sales will at best be approximately $3.5 million to $4.5 million. Finally, the U.S. Trustee states that the appointment of an examiner would be of assistance to the Court in the Thermo Credit litigation, which seeks substantive consolidation of the Debtors and non-debtor insiders. About Cordia Communications Cordia Corporation -- through its operating subsidiaries, Cordia Communications Corp., CordiaIP Corp., My Tel Co, Inc., Northstar Telecom, Inc., Cordia Prepaid Corp., and Cordia International Corp. -- offers business, residential, and wholesale customers local and long distance telecommunications services in more than 60 countries utilizing traditional wireline and Voice over Internet Protocol -- VoIP -- technologies. CCC holds licenses to operate in 28 states throughout the contiguous United States, and CCCVA is licensed in Virginia. Winter Garden, Florida-based Cordia Communications Corp., along with affiliates, filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Lead Case No. 11-06493) on May 1, 2011. The Debtor estimated its assets and debts at $10 million to $50 million. Scott L. Baena, Esq., at Bilzin Sumberg Baena Price & Axelrod LLP, serves as the Debtors' bankruptcy counsel. Source Capital Group, Inc., serves as investment banker. Development Specialists, Inc., is providing restructuring and management services, including Joseph J. Luzinski as chief restructuring officer. Bingham McCutchen LLP as special telecommunications counsel. Cordia Communications Inc. was authorized in July 2011 to sell the business to Birch Communications Inc. For Birch to take over a contract with Verizon Communications Inc., Verizon must be paid $4.4 million, according to the order approving the sale. DEAN FOODS: Fitch Affirms Junk Rating on Senior Unsecured Debt -------------------------------------------------------------- Fitch Ratings has affirmed the ratings of Dean Foods Company (Dean; NYSE: DF) and Dean Holding Company. The ratings are as follows: Dean Foods Company (Parent) -- Issuer Default Rating (IDR) at 'B'; -- Bank credit facility at 'BB-/RR2'; -- Senior unsecured debt at 'CCC/RR6'. Dean Holding Company (Operating Subsidiary) -- IDR at 'B'; -- Senior unsecured debt at 'CCC/RR6'. The Rating Outlook is Stable. At Sept. 30, 2011, Dean had approximately $3.9 billion of total debt. Dean's ratings reflect the firm's high financial leverage, the commodity nature of the dairy industry, and the stabilizing but lowered profitability in a challenging fluid milk operating environment. These negatives are partially mitigated by Dean's leading market share, national distribution capabilities, and the strong growth profile of the firm's WhiteWave-Alpro (WhiteWave) business. WhiteWave, which represented 16% and 25% of sales and operating income excluding corporate expenses and restructuring charges, respectively, in 2010, includes the Horizon Organic, Silk, Alpro, and International Delight brands. Fresh Dairy Direct-Morningstar (FDD-Morningstar), which includes fluid milk, ice cream and other cultured dairy products, represented the remaining 84% and 75%, respectively. Cash flow from operations (CFO), which has averaged $564 million annually since 2007, enables Dean to adequately satisfy working capital needs, capital expenditure requirements, and near-term debt obligations. However, lower profitability in FDD-Morningstar has adversely affected this cash flow. Retailer discounting of private-label milk and high raw milk prices has resulted in significant operating income and cash flow declines since 2009. The discounting, which was enabled by wholesale price concessions, caused branded to private-label price gaps to increase and also negatively affected profitability. Fitch expects Dean to generate materially lower CFO in 2011 at approximately $400 million but believes CFO can increase to about $450 million for 2012 as retailer pricing has become more rational, branded to private- label price gaps have narrowed, and working capital should benefit from near-term declines in raw milk costs. Operating profit for FDD-Morningstar is down 17% to $322 million for the nine months ended Sept. 30, 2011, after declining 33% to $504 million in 2010. Segment operating margin was 3.9% for the most recent nine-month period versus 5.2% in the comparable period last year. During the quarter ended Sept. 30, 2011, Dean booked a preliminary $1.6 billion after-tax non-cash impairment charge against goodwill associated with FDD-Morningstar. The accounting adjustment did not negatively affect room under Dean's financial maintenance covenants discussed below. Fitch views the write-down as confirmation of the permanent step-down in FDD-Morningstar's profitability which had already been factored into ratings. In contrast to FDD-Morningstar, growth prospects for WhiteWave remain favorable due to growing consumer demand for organic and plant-based alternatives to traditional dairy products and Dean's focus on cost management. For the nine-month period ended Sept. 30, 2011, operating income in this segment grew 20% to $142 million, after increasing 27.6% in 2010 to $166 million. Segment operating margin was 9.1% for the most recent nine-month period versus 8.4% in the comparable period last year. Fitch believes that the worst is behind for Dean's fresh dairy business due to more rational retail pricing and, as mentioned previously, moderate near-term declines in raw milk costs. Dean is also on track to complete its $300 million multi-year cost reduction program in Fresh Dairy Direct by Dec. 31, 2011 and remains focused on driving costs out of its operations. Nonetheless, Fitch recognizes that continued volume declines could put downward pressure on wholesale milk prices and cause additional margin compression for FDD-Morningstar. Negative rating actions would occur if declines in operating income and cash flow reaccelerate on a sequential quarterly basis or total debt-to-operating income increases towards 6.0 time (x). A Positive Outlook and subsequent upgrade to Dean's ratings would be warranted if operating performance exceeds Fitch's expectations, as discussed below. Total debt-to-operating income below 5.0x and improved operating fundamentals for the FDD- Morningstar business would trigger such actions. Dean's credit statistics are appropriate for its ratings. For the latest 12-month (LTM) period ended Sept. 30, 2011, total debt-to- operating EBITDA was 5.3x, funds from operations (FFO) adjusted leverage was 5.9x, and operating EBITDA-to-gross interest expense was 2.8x. Fitch is conservatively forecasting total debt-to- operating EBITDA near the current LTM ratio for 2011 and 5.0x in 2012 as Dean uses FCF for debt reduction. Fitch's projections assume relatively flat operating income in 2012, due to potentially competitive wholesale pricing in fluid milk, and moderate debt reduction. Dean generated $55.9 million of FCF during the LTM period. CFO and FCF for 2011 have been negatively affected by the impact of increased commodity costs on working capital requirements and $30 million of cash payments associated with legal settlements. Fitch expects Dean to generate at least $100 million of FCF in 2012 as CFO benefits from lower working capital requirements and capital expenditures remain elevated due to capacity constraints at WhiteWave. Fitch views Dean's liquidity as adequate. At Sept. 30, 2011, Dean had $1.6 billion of liquidity which included $107.7 million of cash, $1.3 billion of revolver availability and $215 million of borrowing capacity under its receivables-backed facility. The company's $1.5 billion revolver has two tranches of which $225 million expires on April 2, 2012 and $1.3 billion is due on April 2, 2014. Fitch does not expect Dean to renew its 2012 tranche as the larger 2014 tranche along with the firm's $600 million receivables-backed facility provide more than enough liquidity. The on-balance sheet receivables-backed facility matures on Sept. 25, 2013. Scheduled maturities of long-term debt at Sept. 30, 2011 included $194.7 million, $616.7 million, and $992.1 million, respectively, in 2012, 2013, and 2014. These obligations consist mainly of term-loan amortization and outstanding balances on the company's receivables-back facility which becomes due in 2013 as mentioned previously. Fitch expects Dean to satisfy 2012 maturities with internally generated cash flow and, if necessary, modest borrowings under its revolver. Dean is likely to extend maturities by refinancing its credit facilities in 2013. Dean's financial maintenance covenants include maximum total and senior secured leverage ratios. Leverage per terms of the credit agreement is generally lower than that used by Fitch, as the covenant excludes up to $100 million of unrestricted cash and adjusts for charges and other non-recurring items. Dean's total leverage covenant is currently 5.75x but steps down to 5.5x on March 31, 2012, 5.25x on March 31, 2013, and 4.5x on Sept. 30, 2013. The senior secured leverage restriction of 4.25x steps down to 3.75x on March 31, 2012, and to 3.5x on March 31, 2013. Dean is also bound by a minimum interest coverage requirement of 2.5x. The ratio steps up to 2.75x on March 31, 2012 and 3.0x on March 31, 2013. EBITDA headroom under Dean's financial maintenance covenants has improved through 2011 due mainly to debt reduction, and remains adequate. At Dec. 30, 2010, Dean had less than 10% headroom under its leverage covenants. However, at Sept. 30, 2011, Dean had approximately 15% cushion under its total leverage covenant, 16% under its senior secured leverage requirement, and 21% under its interest coverage requirement. Fitch recognizes that Dean's covenants become more restrictive in 2012 but expects the firm's cushion to remain adequate as operating income stabilizes and FCF is used for debt reduction. While an event of default is not anticipated, the 'RR2' rating on Dean's secured debt reflects Fitch's view that recovery prospects for these obligations would be superior or range from 71%-90% in a distressed situation. The firm's credit facilities are secured by a perfected security interest in all of the assets of Dean and its subsidiary guarantors. With over 70% of Dean's $3.9 billion of total debt being secured, Fitch believes little value would remain for unsecured bondholders if Dean were to restructure its capital structure under a bankruptcy filing. As such this debt is assigned a Recovery Rating of 'RR6' indicating 10% or less recovery in a distressed situation. Fitch's analysis assumes all unsecured debt would have an equal claim on any residual value as notes of parent and holding company are equally ranked per terms of indentures. However, Dean Holding Co.'s (Operating Co.) $128.7 million 6.9% notes due Oct. 15, 2017 do not benefit from the same parental or subsidiary guarantees as notes issued by Dean Food Co. (Parent). Dean Food Co.'s $498.9 million 7% senior unsecured notes due June 1, 2016 and $400 million of 9.75% senior unsecured notes due Dec. 15, 2018 are guaranteed by substantially all of Dean's wholly-owned subsidiaries other than those for its receivables securitization program. DESERT GARDENS: U.S. Trustee Unable to Form Committee ----------------------------------------------------- The United States Trustee said that an official committee under 11 U.S.C. Sec. 1102 has not been appointed in the bankruptcy case of Desert Gardens IV LLC because an insufficient number of persons holding unsecured claims against the Debtor have expressed interest in serving on a committee. The U.S. Trustee reserves the right to appoint such a committee should interest developed among the creditors. About Desert Gardens IV Desert Gardens IV LLC, owner of a 532-unit Desert Gardens apartments in Glendale, Arizona, filed for Chapter 11 protection to halt foreclosure that was set for Nov. 14. The project has two 31-story towers, one built in 1983 and the other in 2003. U.S. Bank, the secured lender, is owed $26.3 million. The property is estimated to be worth $16 million. Desert Gardens IV filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 11-31061) on Nov. 4, 2011, in Phoenix. Jennings, Strouss & Salmon, P.L.C., serves as the Debtor's counsel. Sierra Consulting Group, LLC, is the financial advisor. The Debtor disclosed $16,138,707 in assets and $27,141,725 in liabilities in its schedules. DESMARAIS ENERGY: Creditors OK Proposed Debt Restructuring ---------------------------------------------------------- Desmarais Energy Corporation said Dec. 12 that the unsecured creditors of Desmarais have overwhelming approved Desmarais' previously announced proposal under the Bankruptcy and Insolvency Act (Canada) to restructure its debts, which approval was secured at a meeting of unsecured creditors held on Dec. 8, 2011. In addition, the Court of Queen's Bench of the Province of Alberta has approved the Proposal on Dec. 9, 2011. Pursuant to the Proposal, approximately $2,072,920 of unsecured debt of Desmarais (the "Settled Debt") will be satisfied by way of issuance of common shares of the Corporation at a deemed issue price of $0.08 per share. Approximately $407,000 of the Settled Debt represents claims that were assigned to arm's length third parties under the Proposal for total cash proceeds of $40,000 and then satisfied under the Proposal by way of issuance of Common Shares to such arm's length third parties. A total of approximately 25,911,500 Common Shares are expected to be issued by Desmarais under the Proposal in satisfaction of the Settled Debt. The Settled Debt includes the settlement of the amount of approximately $616,000 owing to the Corporation's secured creditor, 323 Holdings Ltd., being a corporation controlled by Mr. Doug Robinson, a director of the Corporation. This settlement reduces the aggregate secured debt owing by Desmarais to 323 to approximately $2,000,000. All payments of consideration under the Proposal, including the issuance of Common Shares, are subject to the withholding, and payment by Desmarais, of a 5% statutory levy payable to the Office of the Superintendent of Bankruptcy. Pursuant to the Proposal, creditors of Desmarais who have had some or all of their claims against Desmarais disallowed, in whole or in part, have a period of 15 days from December 9, 2011 during which they may dispute any such disallowance. If, after resolving any such disputed claims, the Corporation is indebted to the holders of such claims, the Corporation expects to issue additional Common Shares under the Proposal at a deemed issue price of $0.08 per share, to settle such claims. Accordingly, the Corporation expects to issue all Common Shares under the Proposal, including the Common Shares issuable in satisfaction of the Settled Debt, subsequent to the expiry of such 15 day period, expected to be on or about the first week of January 2012. As previously announced, Mr. Long has agreed to resign as President and Chief Executive Officer of the Corporation effective Dec. 31, 2011. All amounts currently owing by the Corporation to Mr. Long in respect of his employment with Desmarais, in the amount of $100,000, have been settled in the Proposal. Mr. Long is expected to continue to serve as a director of the Corporation subsequent to his resignation as an officer. Mr. Doug Robinson, the current Chairman of the Corporation, will assume the position of President and Chief Executive Officer on an interim basis at such time. As reported in the Troubled Company Reporter on Sept. 28, 2011, Desmarais Energy Corporation said that it has filed with the Office of the Superintendent of Bankruptcy a Notice of Intention to File a Proposal under the Bankruptcy and Insolvency Act (Canada). As a consequence of such filing, any and all recourses of creditors are stayed for an initial period of 30 days. Desmarais said it had taken this action in light of recent enforcement actions taken by its largest unsecured creditor, whereby that creditor has seized Desmarais' cash balances, leaving Desmarais unable to meet its day to day obligations as they come due. Although this enforcement action and the underlying claim of the unsecured creditor are disputed by Desmarais, the Company has taken this action under the BIA as the most expeditious and economical manner of addressing the interests of its creditors and allowing it to carry on its operations. The trustee named in the notice of intention is Hardie & Kelly Inc., of Calgary, Alberta. About Desmarais Energy Based in Calgary, Canada, Desmarais Energy Corporation is a junior oil and gas exploration and production company, engages in the exploration, development, production, and acquisition of oil and gas reserves in western Canada. DETROIT, MI: To Sell $493M Municipal Bond as State Takeover Looms ----------------------------------------------------------------- Dow Jones' Daily Bankruptcy Review reports that Detroit is likely to have to pay dearly this week to sell $493 million of water and sewer debt in the municipal bond market, just as Governor Rick Snyder is deciding whether to appoint an independent receiver to take over the city's finances. As reported in yesterday's edition of the TCR, the state of Michigan on Dec. 6 commenced 30-day preliminary financial review, which may lead to a takeover of Detroit. Detroit's mayor, Dave Bing, says the city will run out of cash in April 2012. Legislation known as Public Act 4 (PA4) allows the state to appoint an emergency manager for failing local governments and school districts. When an emergency manager is appointed, the authority of elected officials is suspended and the manager assumes control of public contracts, city assets, staff, pay and benefits. On Dec. 1, Michigan governor Rick Snyder appointed an emergency manager to the city of Flint. DETROIT, MI: Fitch Puts 'BB-' ULTGO Bond Ratings on Watch Neg. -------------------------------------------------------------- In the course of routine surveillance, Fitch Ratings places the following ratings for Detroit, MI on Rating Watch Negative: -- Approximately $553 million unlimited tax general obligation (ULTGO) bonds rated 'BB-' -- Approximately $486 million limited tax general obligation (LTGO) bonds rated 'B+' -- Approximately $1.5 billion pension obligation certificates series 2005-A issued through the Detroit Retirement Systems Funding Trust (MI) and 2006 A and B rated 'BB-'. As reflected in the 'BB-' ULTGO rating, Fitch believes Detroit's financial and economic struggles will continue if not intensify. The Mayor has stated his opposition to the installation of an emergency manager pursuant to Act 4, but has also indicated he believes this action may be necessary if labor unions are not willing to make concessions. State officials are reportedly considering revisions to Act 4. The Mayor has also raised the possibility or the city's filing for bankruptcy under Chapter 9 of the Code. Fitch views even discussion of bankruptcy to be quite troubling. Implementation the an emergency manager is also problematic given the movement to suspend and eventually repeal Act 4 and the likelihood that it would trigger a swap termination payment now valued at slightly over $400 million. Agreements with counterparties regarding interest rate swaps on the city's pension obligation certificates were modified to limit the city's exposure to large near-term termination payments in most scenarios. However, there are limited events that would trigger termination, including the imposition of an emergency manager. The Rating Watch Negative reflects this risk, and Fitch's belief that the city would be unable to fund the termination payment from current resources. A sizable general fund operating deficit in fiscal 2009, added to an already negative fund balance position, led to a large accumulated unreserved general fund deficit of $330 million, or a very high 23.6% of spending. Fiscal 2010 would have ended with a $71 million shortfall and an increased accumulated deficit were it not for the issuance of $249 million in deficit bonds to be repaid over 25 years. The bonds were designed to eliminate the accumulated deficit and the need for annual short-term cash flow borrowing for the next several years. However, operating results were more negative than expected, due primarily to revenue shortfalls. The general fund accumulated deficit at fiscal 2010 year-end stood at $91.1 million, with an unreserved balance of negative $155 million or 12.2% of spending. City officials estimate that fiscal 2011 ended with another, although smaller, operating deficit of $40 million-$45 million and an accumulated unreserved fund balance deficit of about $200 million, as revenues are again expected to fall somewhat short of budgeted expectations. In recent fiscal years, audited results have habitually been more negative than projections indicated, so Fitch is concerned that results for fiscal 2011 could be even weaker than expected. The fiscal 2012 budget was balanced but included what Fitch believed to be aggressive revenue assumptions, particularly regarding income taxes. Just four months into the fiscal year, the city forecast a $44 million cash deficit for June 30, 2012, as compared to an original forecast of a $55 million surplus. This indicates the current budget gap is about $100 million. The cash forecast assumes a number of risks, and does not take into account the 1,000 layoffs for which the Mayor sent out notices earlier this month. However, even if the gap were completely filled, which appears optimistic without further action, the ending accumulated deficit would remain extremely high. In addition to the 1,000 layoffs, the Mayor has asked workers to accept concessions including 10% salary reductions and increased contributions to health care and pension funds. The Mayor is also requesting that retirees accept a reduction in benefits. So far only limited concessions have been achieved. Fitch believes that relying on these measures for meaningful budget savings is not realistic at this time. The city council has proposed its own plan, which calls for 2,300 layoffs, but the council does not have the authority to implement it. Fitch believes this is an example of the contentious working relationship between the Mayor and city council, as were the fiscal 2011 and 2012 budget cycles, in both of which the budget was adopted through a city council override of the Mayor's veto. Fitch views this disharmony especially negatively given the acute need for constructive budgetary solutions. The city has developed a five-year Deficit Elimination Plan (DEP) which addresses projected increasing out-year budget gaps with a combination of revenue initiatives, largely focused on improving income tax collections, as well as spending reductions focused on pension and medical costs. Fitch believes that some of the assumptions in the DEP are optimistic and alternatives appear limited. The DEP does not take effect until approved by the state. Economic indicators continue to be exceptionally weak, including an unemployment rate of 20.6% in September 2011, down slightly from 21.4% in September 2010. The improvement in the unemployment rate resulted from the 2.1% decline in the labor force, as employment declined by 1.1% year-over-year. However, the number of jobs in the metro area grew by 1.5% through September 2011 compared to the same period in 2010. 2010 census data showed a surprisingly large drop in population to 713,777, a 25% decline from the 2000 census. The city administration is focused on identifying blighted areas and consolidating residents into more sustainable neighborhoods. Prospects for economic growth appear minimal, although the manufacturing sector is showing some job gains. Debt levels are exceptionally high as compared to Detroit's weak market value of property; overall debt is over 18% of market value. The debt burden is somewhat less dramatic relative to population but still high at $6,397 per capita -- an increase from prior figures due to the incorporation of the lower 2010 census population. Debt service comprised an elevated 17.5% of fiscal 2010 general and debt service fund spending. Concerns about the high debt load, while significant, are somewhat tempered by the sound funded ratios for both of the city's pension programs as a result of issuance of the pension obligation certificates (POCs). However, funded ratios have eroded somewhat in recent years, leading to increasing pension payments as well as a heavy debt service load on the POCs. The unfunded liability for other post-employment benefits (OPEB) when last calculated (June 30, 2009) was about the same size as overall debt. The city funds its OPEB obligation on a pay-as-you- go basis, which equates to about one-half of the annual required contribution on an actuarial basis. DIPPIN' DOTS: Seeks to Employ Harpeth Capital as Broker ------------------------------------------------------- Dippin' Dots, Inc., asks the U.S. Bankruptcy Court for the Western District of Kentucky for permission to employ Harpeth Capital, LLC, as its business broker. It is the Debtor's intent to propose a Plan of Reorganization for the treatment and disposition of all property and obligations within its estate. Harpeth Capital will: (a) familiarize itself to the extent it deems appropriate with the business, operations, properties, financial condition and prospects of the Debtor; (b) assist the Debtor in preparing an information package for distribution by Harpeth Capital to potential buyers describing the Debtor and its respective business, operations, financial condition and prospects; (c) contact and interact with prospective buyers, including advising and assisting in the course of managing requests for additional information and coordinating and conducting management meetings with interested parties; (d) advise and assist in the course of evaluation of term sheets and negotiation of the Transaction and will participate directly in those negotiations; (e) provide other financial advisory and investment banking services, as appropriate, that may be required to assist the Debtor, with the Transaction; and (f) advise and assist the Debtor in negotiating any asset purchase agreements or similar documents or conduct a court approved auction under Sections 363 and 365 of the Bankruptcy Code. As compensation for Harpeth Capital's services, the Debtor will pay: -- a non-refundable, cash retainer fee of $10,000 due upon approval of Harpeth Capital's application with the Bankruptcy Court; plus -- upon the close of a Transaction, a cash success fee equal to 3.5% of the Aggregate Consideration or capital raised, subject to a minimum cash success fee of $250,000, due and payable simultaneous with the closing of the Transaction. To the best of the Debtor's knowledge, Harpeth Capital is a "disinterested party" pursuant to Section 101(14) of the Bankruptcy Code. About Dippin' Dots Founded in 1988 by microbiologist Curt Jones, Dippin' Dots Inc. manufactures quirky and colorful ice cream beads, which are flash frozen using liquid nitrogen. It owns a 120,000-square-foot plant in Kentucky that can produce more than 25,000 gallons of frozen dots a day. It has about 140 Dippin' Dots retail locations, which are mostly controlled by franchisees, and agreements with 9,952 small vendors who sell the ice cream at fairs, festivals and sports games. Dippin' Dots isn't sold in grocery stores because of its extreme cooling requirements. Dippin' Dots filed a Chapter 11 petition (Bankr. W. D. Ky Case No. 11-51077) on Nov. 3, 2011 in Paducah, Kentucky. Judge Thomas H. Fulton presides over the case. Farmer & Wright, PLLC, represents the Debtor as Chapter 11 counsel. The Debtor disclosed $20,233,130 in assets and up to $20,233,130 in debts. The petition was signed by Curt Jones, president. Regions Bank, the Debtor's secured lender, is represented by Brian H. Meldrum, Esq., at Stites & Harbison PLLC. DIPPIN' DOTS: Court OKs Farmer & Wright as Bankruptcy Counsel ------------------------------------------------------------- The Bankruptcy Court authorized Dippin' Dots, Inc., to employ Todd A. Farmer and Samuel J. Wright, with Farmer & Wright, PLLC, as Chapter 11 counsel. The Debtor will pay $225 per hour for Mr. Farmer and $205 per hour for Mr. Wright. Paralegal time will be billed at $85 per hour. The firm's other professionals who may provide services in the case are Stephanie B. Rumfelt, Paralegal; and Melody N. Roberts, Paralegal. The attorneys have been paid $75,000 as a general retainer (plus $1,046 in filing fees). Counsel is also holding $25,000 in its escrow account which the Debtor believes will be used for the retention of other professionals in this case upon approval by the Court. The firm can be reached at: Todd A. Farmer, Esq. FARMER & WRIGHT, PLLC 329 N. 5th Street P.O. Box 7766 Paducah, KY 42002-7766 Tel: (270) 443-4431 Fax: (270) 443-4631 E-mail: todd@sfk-law.com About Dippin' Dots Founded in 1988 by microbiologist Curt Jones, Dippin' Dots Inc. manufactures quirky and colorful ice cream beads, which are flash frozen using liquid nitrogen. It owns a 120,000-square-foot plant in Kentucky that can produce more than 25,000 gallons of frozen dots a day. It has about 140 Dippin' Dots retail locations, which are mostly controlled by franchisees, and agreements with 9,952 small vendors who sell the ice cream at fairs, festivals and sports games. Dippin' Dots isn't sold in grocery stores because of its extreme cooling requirements. Dippin' Dots filed a Chapter 11 petition (Bankr. W. D. Ky Case No. 11-51077) on Nov. 3, 2011 in Paducah, Kentucky. Judge Thomas H. Fulton presides over the case. Farmer & Wright, PLLC, represents the Debtor as Chapter 11 counsel. The Debtor disclosed $20,233,130 in assets and up to $20,233,130 in debts. The petition was signed by Curt Jones, president. Regions Bank, the Debtor's secured lender, is represented by Brian H. Meldrum, Esq., at Stites & Harbison PLLC. DALLAS ROADSTER: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Dallas Roadster, Limited 825 Avenue K Plano, TX 75074 Bankruptcy Case No.: 11-43725 Chapter 11 Petition Date: December 12, 2011 Court: United States Bankruptcy Court Eastern District of Texas (Sherman) Judge: Brenda T. Rhoades Debtor's Counsel: Robert T. DeMarco, Esq. DEMARCO-MITCHELL, PLLC 1255 West 15th St., 805 Plano, TX 75075 Tel: (972) 578-1400 Fax: (972) 346-6791 E-mail: robert@demarcomitchell.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $1,000,001 to $10,000,000 The petition was signed by Bahman Khobahy, president of IEDA, Inc., general partner. The Debtor did not file its list of largest unsecured creditors when it filed its petition. DRINKS AMERICAS: Incurs $384,000 Net Loss in Oct. 31 Quarter ------------------------------------------------------------ Drinks Americas Holdings, Ltd., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q, reporting a net loss of $384,203 on $1.27 million of net sales for the three months ended Oct. 31, 2011, compared with a net loss of $850,415 on $143,642 of net sales for the same period a year ago. The Company also reported a net loss of $730,471 on $1.41 million of net sales for the six months ended Oct. 31, 2011, compared with a net loss of $1.74 million on $245,898 of net sales for the same period during the prior year. The Company's balance sheet at Oct. 31, 2011, showed $2.52 million in total assets, $5.35 million in total liabilities, and a $2.83 million total stockholders' deficiency. A full-text copy of the Form 10-Q is available for free at: http://is.gd/cwG3oj About Drinks Americas Headquartered in Wilton, Conn., Drinks Americas Holdings, Ltd. -- http://www.drinksamericas.com/-- through its majority-owned subsidiaries, Drinks Americas, Inc., Drinks Global, LLC, D.T. Drinks, LLC, and Olifant U.S.A Inc., imports, distributes and markets unique premium wine and spirits and alcoholic beverages associated with icon entertainers, celebrities and destinations, to beverage wholesalers throughout the United States. The Company reported a net loss of $4.58 million on $497,453 of net sales for the year ended April 30, 2011, compared with a net loss of $5.61 million on $890,380 of net sales during the prior year. Bernstein & Pinchuk, in New York, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant losses from operations since its inception and has a working capital deficiency. ECO SOLAR: Case Summary & 12 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Eco Solar, Inc 2101 47th St. Sarasota, FL 34234 Bankruptcy Case No.: 11-22419 Chapter 11 Petition Date: December 7, 2011 Court: United States Bankruptcy Court Middle District of Florida (Tampa) Debtor's Counsel: David W Steen, Esq. DAVID W STEEN PA 13902 North Dale Mabry Highway, Suite 110 Tampa, FL 33618 Tel: (813) 251-3000 Fax: (813) 251-3100 E-mail: dwsteen@dsteenpa.com Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 12 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flmb11-22419.pdf The petition was signed by Peter Laughlin, president. EDWARD DEETS: Section 341(a) Meeting Scheduled for Jan. 27 ---------------------------------------------------------- The U.S. Trustee for Region 3 will convene a meeting of creditors of Edward Deets Holding Company, Inc., on Jan. 27, 2012, at 10:00 a.m. The meeting will be held at Wm J Nealon Fed Bldg/US Courthouse, room to be determined, Washington & Linden Streets, Scranton, Pennsylvania. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Mountain Top, Pa.-based Edward Deets Holding Company, Inc., filed for Chapter 11 bankruptcy (Bankr. M.D. Pa. Case No. 11-06869) on Oct. 6, 2011. The Debtor estimated assets of $10 million to $50 million and estimated debts of $1 million to $10 million. The petition was signed by Edward Deets, president. EMPRESAS INTEREX: Hires Cuprill Law Office as Bankr. Counsel ------------------------------------------------------------ Empresas Interex Inc. said it is not sufficiently familiar with the law to be able to plan and conduct its bankruptcy proceedings without competent legal counsel. Accordingly, Empresas Interex seeks Bankruptcy Court permission to hire as counsel: Charles Alfred Cuprill, Esq. CHARLES A CURPILL, PSC LAW OFFICE 356 Calle Fortaleza, Second Floor San Juan, PR 00901 Tel: (787) 977-0515 E-mail: ccuprill@cuprill.com The Debtor proposes to pay Charles A. Cuprill-Hernandez, Esq., $350 per hour; senior associates $225; junior associates $150; and paralegals $85. The Debtor will also reimburse the firm for actual necessary expenses. The Debtor has provided the firm $15,000 as retainer. Mr. Cuprill-Hernandez attests that his firm is a "disinterested person" as defined in 11 U.S.C. Sec. 101(14). San Juan, Puerto Rico-based Empresas Interex Inc. filed for Chapter 11 bankruptcy (Bankr. D. P.R. Case No. 11-10475) on Dec. 7, 2011. Bankruptcy Judge Mildred Caban Flores presides over the case. Empresas Interex scheduled $10,372,712 in assets and $9,668,801 in debts. The petition was signed by Hector Alvarez, president. EMPRESAS INTEREX: Sec. 341 Creditors' Meeting Set for Jan. 13 ------------------------------------------------------------- The United States Trustee in San Juan, Puerto Rico, will hold a meeting of creditors in the Chapter 11 case of Empresas Interex Inc. pursuant to Sec. 341(a) of the Bankruptcy Code on Jan. 13, 2012, at 2:00 p.m. at 341 Meeting Room, Ochoa Building, 500 Tanca Street, First Floor, San Juan. Proofs of claim are due April 12, 2012. Government proofs of Claim are due by June 9, 2012. San Juan, Puerto Rico-based Empresas Interex Inc. filed for Chapter 11 bankruptcy (Bankr. D. P.R. Case No. 11-10475) on Dec. 7, 2011. Bankruptcy Judge Mildred Caban Flores presides over the case. Charles Alfred Cuprill PSC Law Office serves as the Debtor's counsel. Empresas Interex scheduled $10,372,712 in assets and $9,668,801 in liabilities. The petition was signed by Hector Alvarez, president. FILENE'S BASEMENT: Committee Taps Richard Layton as Co-Counsel -------------------------------------------------------------- The Official Committee of Unsecured Creditors of the Chapter 11 cases of Filene's Basement, LLC, et al., asks the U.S. Bankruptcy Court for the District of Delaware for permission to retain Richards, Layton & Finger, P.A., as co-counsel to the Committee nunc pro tunc to Nov. 8, 2011. As the Committee's co-counsel, the firm will, among other things: a) advise the Committee of its rights, powers and duties in the Chapter 11 cases; b) assist and advise the Committee in its consultations with the Debtors relative to the administration of these chapter 11 cases; c) assist the Committee in analyzing the claims of the Debtors' creditors and in negotiating with such creditors; d) assist with the Committee's investigation of the acts, conduct, assets, liabilities and financial condition of the Debtors and of the operation of the Debtors' businesses; and e) assist the Committee in its analysis of, and negotiations with, the Debtors or their creditors concerning matters related to, among other things, the term of any plan or plans of reorganization or liquidation or any section 363 sale. The Committee proposes to pay RL&F its customary hourly rates as set forth in the affidavit of Michael J. Merchant. The Committee assures the Court that the firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About Filene's Basement Massachusetts-based Filene's Basement, also called The Basement, is the oldest off-price retailer in the United States. The Basement focuses on high-end goods and is known for its distinctive, low-technology automatic markdown system. Filene's Basement first filed for Chapter 11 bankruptcy protection in August 1999. Filene's Basement was bought by a predecessor of Retail Ventures, Inc., the following year. Retail Ventures in April 2009 transferred the unit to Buxbaum. Filene's Basement, Inc. and its affiliates filed for Chapter 22 (Bankr. D. Del. Case No. 09-11525) on May 4, 2009, represented by lawyers at Pachulski Stang Ziehl & Jones LLP. Epiq Bankruptcy Solutions serves as claims and notice agent. The Debtors listed $50 million to $100 million in assets and $100 million to $500 million in debts. The 2009 Debtor was formally renamed FB Liquidating Estate, following the sale of all of its assets to Syms Corp. in June 2009. Pursuant to the Liquidating Plan confirmed in January 2010, secured creditors in the Chapter 11 case have been paid in full, and holders of priority, administrative and convenience class claims have received 100% of their allowed claims. As reported by the Troubled Company Reporter on Dec. 20, 2010, Alan Cohen, Chairman of Abacus Advisors LLC and Chief Restructuring Officer for FB Liquidating Estate disclosed that a second distribution of dividend checks to Filene's unsecured creditors amounting to 12.5% of approved claims has been made, bringing the cumulative distributions on unsecured claims to 62.5%. On Nov. 2, 2011, Syms Corp. placed itself, Filene's Basement and two other units in Chapter 11 bankruptcy (Bankr. D. Del. Case Nos. 11-13511 to 11-13514) after a failed bid to sell the business. The two units are Syms Clothing Inc. and Syms Advertising Inc. Judge Kevin J. Carey presides over the case. Lawyers at Skadden Arps Slate Meagher & Flom LLP serve as the Debtors' counsel. The Debtors tapped Rothschild Inc. as investment banker and Cushman and Wakefield Securities, Inc., as real estate financial advisors. Syms shuttered its namesake and Filene's Basement outlets upon the bankruptcy filing and tapped a joint venture of Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC to run the going-out-of-business sales. The sale may continue until Jan. 31, 2012. Filene's Basement estimated $1 million to $10 million in assets and $50 million to $100 million in debts. The petitions were signed by Gary Binkoski, authorized representative of Filene's Basement. The official committee of unsecured creditors appointed in the 2011 case has retained Hahn & Hessen LLP as legal counsel. Holders of equity in Syms Corp. pushed for an official shareholders' committee and separation of the Syms and Filene's Basement bankruptcy estates. Gordon Brothers and Hilco are represented by Goulston & Storrs, P.C. and Ashby & Geddes, P.A. FILENE'S BASEMENT: Committee Hires Munger Tolles as Counsel ----------------------------------------------------------- The Official Committee of Unsecured Creditors of the Chapter 11 cases of Filene's Basement, LLC, et al., asks the U.S. Bankruptcy Court for the District of Delaware for permission to retain Munger, Tolles & Olson LLP as counsel to the Committee, nunc pro tunc to Nov. 15, 2011. The professional services MTO would provide to the Committee include but are not limited to: * to provide legal advice and assistance to the Committee concerning the administration of the Chapter 11 cases; * to consult with, aid, and advise the Committee with respect to the investigation of the acts, conduct, assets, liabilities, and financial condition of the Debtors, the operations of the Debtors' businesses, and any other matter relevant to the cases or the formulation of a plan of liquidation or reorganization; * to advise the Committee of its fiduciary duties and responsibilities to Syms' equity security holders and to direct necessary communication with same; * to evaluate and potentially pursue claims against parties; * represent the Committee's interest in any hearings before this Court and communicate with the Committee regarding the issues raised, as well as the decisions of the Court; * to review and analyze all applications, motions, pleadings, orders, statements of operation, and schedules filed with the Court by the Debtors or third parties or other matters filed in the Debtors' cases, advise the Committee as to their propriety, and, after consultation with the Committee, take appropriate action; and * assist the Committee in preparing applications, motions, and orders in support of positions taken by the Committee, as well as prepare witnesses ad review documents in this regard. MTO will charge for services rendered to the Committee in accordance with MTO's hourly rates in effect at the times services are rendered. The hourly rates for the MTO attorneys and paraprofessionals anticipated to render services to the Committee range from $620 to $925 for partners, $325 to $575 for associates, and $65 to $230 for paraprofessionals. These hourly rates are adjusted periodically to reflect the advancing experience, capabilities, and seniority of its professionals as well as general economic factors. MTO currently expects to adjust its rates effective as of Jan. 1, 2012. In addition, MTO will seek reimbursement for actual and necessary expenses incurred in connection with its representation of the Committee. To the best of the Committee's knowledge, MTO does not hold or represent any interest materially adverse to the Debtor or the Debtor's estate, and that MTO is a "disinterested person" as that term is defined in section 101(14) of the Bankruptcy Code. About Filene's Basement Massachusetts-based Filene's Basement, also called The Basement, is the oldest off-price retailer in the United States. The Basement focuses on high-end goods and is known for its distinctive, low-technology automatic markdown system. Filene's Basement first filed for Chapter 11 bankruptcy protection in August 1999. Filene's Basement was bought by a predecessor of Retail Ventures, Inc., the following year. Retail Ventures in April 2009 transferred the unit to Buxbaum. Filene's Basement, Inc. and its affiliates filed for Chapter 22 (Bankr. D. Del. Case No. 09-11525) on May 4, 2009, represented by lawyers at Pachulski Stang Ziehl & Jones LLP. Epiq Bankruptcy Solutions serves as claims and notice agent. The Debtors listed $50 million to $100 million in assets and $100 million to $500 million in debts. The 2009 Debtor was formally renamed FB Liquidating Estate, following the sale of all of its assets to Syms Corp. in June 2009. Pursuant to the Liquidating Plan confirmed in January 2010, secured creditors in the Chapter 11 case have been paid in full, and holders of priority, administrative and convenience class claims have received 100% of their allowed claims. As reported by the Troubled Company Reporter on Dec. 20, 2010, Alan Cohen, Chairman of Abacus Advisors LLC and Chief Restructuring Officer for FB Liquidating Estate disclosed that a second distribution of dividend checks to Filene's unsecured creditors amounting to 12.5% of approved claims has been made, bringing the cumulative distributions on unsecured claims to 62.5%. On Nov. 2, 2011, Syms Corp. placed itself, Filene's Basement and two other units in Chapter 11 bankruptcy (Bankr. D. Del. Case Nos. 11-13511 to 11-13514) after a failed bid to sell the business. The two units are Syms Clothing Inc. and Syms Advertising Inc. Judge Kevin J. Carey presides over the case. Lawyers at Skadden Arps Slate Meagher & Flom LLP serve as the Debtors' counsel. The Debtors tapped Rothschild Inc. as investment banker and Cushman and Wakefield Securities, Inc., as real estate financial advisors. Syms shuttered its namesake and Filene's Basement outlets upon the bankruptcy filing and tapped a joint venture of Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC to run the going-out-of-business sales. The sale may continue until Jan. 31, 2012. Filene's Basement estimated $1 million to $10 million in assets and $50 million to $100 million in debts. The petitions were signed by Gary Binkoski, authorized representative of Filene's Basement. The official committee of unsecured creditors appointed in the 2011 case has retained Hahn & Hessen LLP as legal counsel. Holders of equity in Syms Corp. pushed for an official shareholders' committee and separation of the Syms and Filene's Basement bankruptcy estates. Gordon Brothers and Hilco are represented by Goulston & Storrs, P.C. and Ashby & Geddes, P.A. FILENE'S BASEMENT: Syms Equity Committee Defends Right to Exist --------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the official shareholders' committee for Syms Corp. and subsidiary Filene's Basement LLC predictably is opposing a motion by the creditors' committee to disband the equity panel. The U.S. Trustee, who appointed the equity committee, is also opposed. The report relates that in court papers, the shareholders' committee said their interests aren't adequately represented because management is "hopelessly conflicted and have a long history of antagonism" toward minority shareholders. The shareholders, according to the report, say an equity committee is justified because Syms is solvent, even if Filene's may have insufficient assets to fully pay its separate debts. The equity committee and the U.S. Trustee also argue that there was no abuse of discretion when the U.S. Trustee took it upon herself to appoint the additional official committee. According to the report, the shareholders likewise oppose the idea of placing a cap on their committee's professionals' fees. They say equity holders ultimately will pay the cost for everyone's professionals, including the creditors' committee's lawyers. There's a "current short-squeeze going on in connection with the Syms stock," David Tawil, co-founder and portfolio manager at Maglan Capital, said in an e-mail, according to the report. To justify the price, the real estate must be worth $200 million, which he said is "unlikely." Tawil said he's betting on a decline in the shares. The day of bankruptcy, the shares closed at $9.72, up 27% from the previous day. The stock slumped to $7.90 on Nov. 14 and has risen since then. About Filene's Basement Massachusetts-based Filene's Basement, also called The Basement, is the oldest off-price retailer in the United States. The Basement focuses on high-end goods and is known for its distinctive, low-technology automatic markdown system. Filene's Basement first filed for Chapter 11 bankruptcy protection in August 1999. Filene's Basement was bought by a predecessor of Retail Ventures, Inc., the following year. Retail Ventures in April 2009 transferred the unit to Buxbaum. Filene's Basement, Inc. and its affiliates filed for Chapter 22 (Bankr. D. Del. Case No. 09-11525) on May 4, 2009, represented by lawyers at Pachulski Stang Ziehl & Jones LLP. Epiq Bankruptcy Solutions serves as claims and notice agent. The Debtors listed $50 million to $100 million in assets and $100 million to $500 million in debts. The 2009 Debtor was formally renamed FB Liquidating Estate, following the sale of all of its assets to Syms Corp. in June 2009. Pursuant to the Liquidating Plan confirmed in January 2010, secured creditors in the Chapter 11 case have been paid in full, and holders of priority, administrative and convenience class claims have received 100% of their allowed claims. As reported by the Troubled Company Reporter on Dec. 20, 2010, Alan Cohen, Chairman of Abacus Advisors LLC and Chief Restructuring Officer for FB Liquidating Estate disclosed that a second distribution of dividend checks to Filene's unsecured creditors amounting to 12.5% of approved claims has been made, bringing the cumulative distributions on unsecured claims to 62.5%. On Nov. 2, 2011, Syms Corp. placed itself, Filene's Basement and two other units in Chapter 11 bankruptcy (Bankr. D. Del. Case Nos. 11-13511 to 11-13514) after a failed bid to sell the business. The two units are Syms Clothing Inc. and Syms Advertising Inc. Judge Kevin J. Carey presides over the case. Lawyers at Skadden Arps Slate Meagher & Flom LLP serve as the Debtors' counsel. The Debtors tapped Rothschild Inc. as investment banker and Cushman and Wakefield Securities, Inc., as real estate financial advisors. Syms shuttered its namesake and Filene's Basement outlets upon the bankruptcy filing and tapped a joint venture of Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC to run the going-out-of-business sales. The sale may continue until Jan. 31, 2012. Filene's Basement estimated $1 million to $10 million in assets and $50 million to $100 million in debts. The petitions were signed by Gary Binkoski, authorized representative of Filene's Basement. The official committee of unsecured creditors appointed in the 2011 case has retained Hahn & Hessen LLP as legal counsel. Holders of equity in Syms Corp. pushed for an official shareholders' committee and separation of the Syms and Filene's Basement bankruptcy estates. Gordon Brothers and Hilco are represented by Goulston & Storrs, P.C. and Ashby & Geddes, P.A. FIRST STREET: Wins OK to Hire Macdonald & Associates as Attorneys ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of California authorized First Street Holdings NV, LLC, et al., to employ Macdonald & Associates as their attorneys. The firm will assist the Debtors in plan formulation, preparing schedules and statement of financial affairs, reviewing monthly operating reports, responding to creditor inquiries, litigating potential claims by or against third parties, assisting it with sales of assets, together with any and all services usually performed by debtors' counsel in a chapter 11 case. About First Street First Street Holdings NV, LLC, filed for Chapter 11 bankruptcy (Bankr. N.D. Calif. Case No. 11-49300) on Aug. 30, 2011, before Judge Roger L. Efremsky. Iain A. Macdonald, Esq., at MacDonald and Associates, serves as the Debtor's bankruptcy counsel. In its schedules, the Debtor disclosed $81,962,460 in assets and $80,409,199 in liabilities. FORMATECH, INC: Cancer Drug Formulation Needs to be Redone ---------------------------------------------------------- Cellceutix Corporation provided an update on the development of Kevetrin(TM), the Company's flagship anti-cancer compound. The U.S. Food and Drug Administration has reviewed the Investigational New Drug (IND) application for Kevetrin(TM) and advised that the batch formulation is needed to be redone as a result of the ceasing of operations at Formatech, the company that produced the filled vials. Formatech filed for bankruptcy shortly before the IND filing. Cellceutix management has already identified an alternative formulation site with production planned for January 2012. Additionally, Cellceutix has been approached by the Pioneer Valley Life Sciences Institute, a Baystate Medical Center/University of Massachusetts Amherst Research Partnership, to collaborate on an innovative research project on Kevetrin(TM). The Institute wishes to investigate Kevetrin's antitumor activity related to risk factor aging and, as such, Cellceutix has initiated a major study in collaboration with the Institute. Kevetrin(TM) has potent antitumor activity in several wild type and mutant p53 human tumor xenografts. It is well established that aging is a major risk factor for tumorigenesis. As mitochondrial function declines with age, it provides survival advantages to cancer cells. In mitochondrial respiration- deficient cells, p53 levels are reduced to undetectable levels. Since Kevetrin has been shown to be very effective in wild and mutant p53 tumors, it is highly desirable and important to understand Kevetrin's role in antitumor activity in the context of age-related mitochondrial dysfunction. This study will provide vital insight and may have a considerable impact on the treatment of tumors associated with mitochondrial dysfunction due to aging. Dr. Nagendra Yadava, a leader in mitochondrial disease and aging, in the Department of Biology at University of Massachusetts Amherst, will initially head the research. "We have already moved quickly towards manufacturing a new batch of Kevetrin(TM) for the clinical trials," commented Leo Ehrlich, CEO of Cellceutix. "It's a bit of a disappointment that was completely out of our hands. In the grand picture, the remanufacturing will only set us back a short time that we will use to focus on other aspects of development of Kevetrin(TM) and our other compounds. We have been approached recently by several major universities wanting to research Kevetrin and anticipate more of these joint efforts to be coming in the near term as we continue to associate ourselves with the biggest names in the oncology arena." Cellceutix Corporation -- http://www.cellceutix.com/-- is a preclinical cancer, anti-inflammatory and autism drug developer. Formatech, Inc., filed a Chapter 11 petition (Bankr. D. Mass. Case No. 11-43424) on Aug. 12, 2011 in Worcester, Massachusetts, Barry C. Richmond, Esq. at Law Office of Barry C. Richmond, in Worcester, serves as counsel to the Debtor. The Debtor estimated up to $1,000,000 in assets and up to $10,000,000 in liabilities. The petition was signed by Indu S. Javeri, president. FRIENDLY ICE CREAM: Section 341(a) Meeting Scheduled for Jan. 17 ---------------------------------------------------------------- The U.S. Trustee for Region 3 will convene a meeting of creditors of Friendly Ice Cream Corp. on Jan. 17, 2012, at 1:30 p.m. The meeting will be held at J. Caleb Boggs Federal Building, 844 King Street, 2nd Floor, Room 2112, Wilmington, Delaware. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. About Friendly Ice Cream Friendly Ice Cream Corp. -- http://www.friendlys.com/-- the owner and franchiser of 490 full-service, family-oriented restaurants and provider of ice cream products in the Eastern United States, filed for Chapter 11 reorganization together with four affiliates (Bankr. D. Del. Lead Case No. 11-13167) on Oct. 5, 2011, to sell the business mostly in exchange for debt to Sundae Group Holdings II LLC, a unit of Sun Capital Partners Inc. The existing owner and holder of the Debtors' second-lien debt are also affiliates of Sun Capital. Friendly's, based in Wilbraham, Massachusetts, also announced the closing of 63 stores, leaving about 424 operating. Franchise operators have about 230 of the locations. Judge Kevin Gross oversees the case. James A. Stempel, Esq., Ross M. Kwasteniet, Esq., and Jeffrey D. Pawlitz, Esq., at Kirkland & Ellis LLP; and Laura Davis Jones, Esq., Timothy P. Cairns, Esq., and Kathleen P. Makowski, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as the Debtors' bankruptcy counsel. Zolfo Cooper serves as the Debtors' financial advisors. In its petition, Friendly Ice Cream Corp. estimated $100 million to $500 million in assets and debts. The petitions were signed by Steven C. Sanchioni, executive vice president, chief financial officer, treasurer, and assistant secretary. Sundae Group Holdings proposes to pay about $120 million for the business. The price includes enough cash to pay first-lien debt and an amount of cash for unsecured creditors to be negotiated with the official creditors' committee. Aside from cash, Sun Capital will make a credit bid from the $267.7 million in second- lien, pay-in-kind notes. The bid from Sun Capital is subject to higher and better offers at an auction. Under the proposed time-line, bids would be due Nov. 24, followed by an auction on Dec. 1. A competing bid must be at least $122.6 million in cash. Friendly's is one of two companies under Sun Capital's portfolio to file for bankruptcy in a span of two days. Mexican-food chain Real Mex, which operates restaurants such as Chevys, filed in Delaware bankruptcy court on Oct. 3, 2011. On Oct. 12, 2011, the U.S. Trustee appointed the Committee. The Committee currently consists of seven members. The Committee selected Akin Gump Straus Hauer & Feld LLP and Blank Rome LLP to serve as co-counsel to the Committee, and FTI Consulting to serve as the Committee's financial advisor. FRIENDLY ICE CREAM: Wells Fargo Says No Rivals Stepping Up to Bid ----------------------------------------------------------------- Dow Jones' DBR Small Cap reports that the agent for lenders to Friendly Ice Cream Corp. says there's no point in letting the fight over a credit bid for the chain's assets play out since no other purchaser has yet stepped up to challenge the stalking horse. About Friendly Ice Cream Friendly Ice Cream Corp. -- http://www.friendlys.com/-- the owner and franchiser of 490 full-service, family-oriented restaurants and provider of ice cream products in the Eastern United States, filed for Chapter 11 reorganization together with four affiliates (Bankr. D. Del. Lead Case No. 11-13167) on Oct. 5, 2011, to sell the business mostly in exchange for debt to Sundae Group Holdings II LLC, a unit of Sun Capital Partners Inc. The existing owner and holder of the Debtors' second-lien debt are also affiliates of Sun Capital. Friendly's, based in Wilbraham, Massachusetts, also announced the closing of 63 stores, leaving about 424 operating. Franchise operators have about 230 of the locations. Judge Kevin Gross oversees the case. James A. Stempel, Esq., Ross M. Kwasteniet, Esq., and Jeffrey D. Pawlitz, Esq., at Kirkland & Ellis LLP; and Laura Davis Jones, Esq., Timothy P. Cairns, Esq., and Kathleen P. Makowski, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as the Debtors' bankruptcy counsel. Zolfo Cooper serves as the Debtors' financial advisors. In its petition, Friendly Ice Cream Corp. estimated $100 million to $500 million in assets and debts. The petitions were signed by Steven C. Sanchioni, executive vice president, chief financial officer, treasurer, and assistant secretary. Sundae Group Holdings proposes to pay about $120 million for the business. The price includes enough cash to pay first-lien debt and an amount of cash for unsecured creditors to be negotiated with the official creditors' committee. Aside from cash, Sun Capital will make a credit bid from the $267.7 million in second- lien, pay-in-kind notes. The bid from Sun Capital is subject to higher and better offers at an auction. Under the proposed time-line, bids would be due Nov. 24, followed by an auction on Dec. 1. A competing bid must be at least $122.6 million in cash. Friendly's is one of two companies under Sun Capital's portfolio to file for bankruptcy in a span of two days. Mexican-food chain Real Mex, which operates restaurants such as Chevys, filed in Delaware bankruptcy court on Oct. 3, 2011. On Oct. 12, 2011, the U.S. Trustee appointed the Committee. The Committee currently consists of seven members. The Committee selected Akin Gump Straus Hauer & Feld LLP and Blank Rome LLP to serve as co-counsel to the Committee, and FTI Consulting to serve as the Committee's financial advisor. GELT PROPERTIES: Court OKs Craig Howe as Committee's Accountants ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Pennsylvania authorized the Official Committee of Unsecured Creditors of Gelt Properties LLC and Gelt Financial Corporation to retain Craig Howe, CPA, and Howe, Keller & Hunter, P.C., as its accountants. Craig Howe will: (a) examine the books and records of the Debtors; (b) assist the Committee in its investigation of the acts, conduct, assets, liabilities, and financial condition of the Debtors, and the operation of Debtors' business. (c) conduct a preference analysis and fraudulent conveyance analysis; and (d) perform all other accounting and financial services which may be necessary in these proceedings. The hourly rates of the Craig Howe's professionals are: Partners $250 Staff $175 Administrative $100 The firm will be reimbursed for all actual expenses incurred in the performance of accounting services. To the best of the Committee's knowledge, neither Craig Howe nor his firm holds or represents an interest adverse to the estate with respect to the matter on which they will be employed. About Gelt Properties Based in Huntington Valley, Pennsylvania, Gelt Properties, LLC, and affiliate Gelt Financial Corporation borrow money from traditional lenders and make loans to commercial borrowers. They also acquire and manage real estate. Gelt Properties and Gelt Financial filed for (Bankr. E.D. Pa. Case Nos. 11-15826 and 11- 15826) on July 25, 2011. Judge Magdeline D. Coleman presides over the cases. Albert A. Ciardi, III, Esq., Jennifer E. Cranston, Esq., and Thomas Daniel Bielli, Esq., at Ciardi Ciardi & Astin, P.C., in Philadelphia, Pa., serve as the Debtors' bankruptcy counsel. The petitions were signed by Uri Shoham, the Debtors' chief financial officer. The Debtors' other professionals include: Eisenberg, Gold & Cettei P.C. as its special counsel to provide proper legal counsel to the Debtors with regard to defending against certain actions, Cohen and Forman as their special counsel to advise them upon all matters which may arise or which may be incident to the bankruptcy proceedings. Gelt Properties disclosed $4,727,090 in assets and $4,842,792 in liabilities as of the Chapter 11 filing. Its affiliate, Gelt Financial, has filed its schedules disclosing $20,340,725 in assets and $17,050,558 in liabilities as of the Chapter 11 filing. On Sept. 15, 2011, a committee of unsecured creditors was appointed. Schoff McCabe, P.C. represents the Committee. GRAND CANYON EQUITY: Buffalo Wild Wings Wins TRO for Trademark -------------------------------------------------------------- Buffalo Wild Wings International, Inc., sought and obtained a temporary restraining order and preliminary injunction to stop franchisees of its Buffalo Wild Wings restaurants from infringing on its trademarks. Buffalo Wild Wings sued three franchisees, along with a related entity and four individual guarantors, alleging infringement and breach of the terms of the parties' franchise agreements by continuing to use its trademarks, trade names, slogans, symbols, etc., and its system of doing business after their franchise agreements have terminated. BWW also obtained an order compelling the Defendants to de-identify with the BWW brand. The case is Buffalo Wild Wings International, Inc., v. Grand Canyon Equity Partners, LLC, GCEP-Goodyear, LLC, GCEP-Surprise, LLC, GCEP-Scottsdale, LLC, David Agado, Richard Folmar, Michael Merriman, and Ceasar Perez, Civ. No. 11-3287 (D. Minn.). BWW entered into a Franchise Agreement with Grand Canyon Equity Partners in January 2004 for a restaurant located in Phoenix, Arizona. BWW entered into another Franchise Agreement with GCEP- Goodyear in March 2006 for a restaurant in Goodyear, Arizona, and one with GCEP-Surprise in October 2007 for a restaurant in Surprise, Arizona. The individual defendants are parties to the action as guarantors of the Franchise Agreements. GCEP-Goodyear and GCEP-Surprise defaulted on the Agreements by failing to pay a third-party vendor as well as royalties and advertising fees they owed. BWW terminated the Franchise Agreements with respect to the Goodyear and Surprise restaurants on May 26, 2011. BWW also informed GCEP-Goodyear and GCEP- Surprise in the termination notice of its intent to enforce the post-termination obligations set forth in the Franchise Agreements. These obligations include de-identifying the interior and exterior of the restaurant to eliminate identification as a BWW franchise and removing all of BWW's marks. Following the termination of the Goodyear and Surprise Franchise Agreements, BWW and the GCEP entities commenced negotiations regarding the closure of the three restaurants. The Defendants wanted time to sell their interests in the restaurants, and BWW agreed to allow them to continue operating for a limited time while attempting to sell in order to preserve brand goodwill and avoid interruption of service. On July 29, 2011, BWW and Defendants executed a Limited Reinstatement Agreement that reinstated the Franchise Agreements through Oct. 20. However, the Defendants were unable to reach an agreement with any potential purchasers and even after Oct. 20, they continued using the BWW marks. While the Limited Reinstatement Agreement was in effect, GCEP- Goodyear, GCEP-Scottsdale and GCEP-Surprise filed for Chapter 11 bankruptcy (Bankr. D. Ariz. Case Nos. 11-22546, 11-22547 and 11- 22550) on Aug. 5, 2011. Judge James M. Marlar presided over the case. Kevin C. McCoy, Esq. -- kmccoy@kelly-mccoy.com -- served as the Debtors' counsel. Each of the Debtors estimated $50,001 to $100,000 in assets and $1 million to $10 million in debts. BWW then sued the Debtors in bankruptcy court to halt the use of the trademarks. BWW also sought temporary and preliminary injunctive relief. However, before that motion was resolved, the attorney representing the GCEP entities in the bankruptcy case withdrew, and the case was dismissed on Nov. 4. BWW, whose principal place of business is in Minnesota, then commenced a lawsuit in Minnesota District Court on Nov. 8 and moved for a temporary restraining order and preliminary injunction. The initial hearing on its Motion was cancelled after the District Court learned that at least some of the GCEP Defendants had filed for bankruptcy again, this time in the Southern District of Texas. GCEP-Goodyear LLC -- aka GCEP-Scottsdale LLC, GCEP Surprise LLC, and GCEP -- filed a Chapter 11 petitin (Bankr. S.D. Tex. Case No. 11-20662) in Corpus Christi on Nov. 8, 2011. The case was assigned to Judge Richard S. Schmidt. Mariana Garza, Esq. -- mariana@marianagarzalaw.com -- served as the Debtor's counsel. GCEP-Goodyear estimated under $50,000 in assets and $1 million to $10 million in debts. The petition was signed by David R. Agado, managing member. The November bankruptcy proceeding was voluntarily dismissed, however, and the parties are proceeding to litigate in the Minnesota action. A copy of District Judge Richard H. Kyle's Dec. 9, 2011 Memorandum Opinion and Order is available at http://is.gd/JMD6c7from Leagle.com. Buffalo Wild Wings International is represented in the lawsuit by: Kerry L. Bundy, Esq. Christopher J.L. Diedrich FAEGRE & BENSON LLP 2200 Wells Fargo Center 90 South Seventh Street Minneapolis, MN 55402-3901 Tel: 612-766-7994 E-mail: kbundy@faegre.com cdiedrich@faegre.com Grand Canyon Equity Partners, LLC, GCEP-Goodyear, LLC, GCEP- Surprise, LLC, GCEP-Scottsdale, LLC, David Agado, and Richard Folmar are represented by: Ronald K. Gardner, Jr., Esq. J. Mark Dady, Esq. DADY & GARDNER. P.A. 5100 IDS Center 80 South Eighth Street Minneapolis, MN 55402 E-mail: mdady@dadygardner.com GREEN ENDEAVORS: Files Form S-8, Registers 300MM Common Shares -------------------------------------------------------------- Green Endeavors, Inc., filed with the U.S. Securities and Exchange Commission a Form S-8 registration statement registering 300,000,000 shares of common stock issuable under The 2011 Benefit Plan of Green Endeavors, Inc. The proposed maximum offering price is $150,000. A full-text copy of the prospectus is available for free at http://is.gd/krGKnQ About Green Endeavors Salt Lake City, Utah-based Green Endeavors, Inc., runs two hair care salons that feature Aveda(TM) products for retail sale. The Company also reported a net loss of $112,799 on $2.05 million of total revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $187,586 on $1.60 million of total revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $1.06 million in total assets, $4.37 million in total liabilities and a $3.31 million total stockholders' deficit. Green had a net loss for the nine months ended Sept. 30, 2011, of $112,799 and negative working capital of $1,209,264, which raises substantial doubt about the Green's ability to continue as a going concern. Green's ability to continue as a going concern is contingent upon the successful completion of additional financing arrangements and its ability to successfully fulfill its business plan. Management plans to attempt to raise additional funds to finance the operating and capital requirements of Green through a combination of equity and debt financings. While Green is making its best efforts to achieve the above plans, there is no assurance that any such activity will generate funds that will be sufficient for operations. As reported by the TCR on April 1, 2011, Madsen & Associates CPA', Inc., in Salt Lake City, Utah, expressed substantial doubt about the Company's ability to continue as a going concern. The accountants noted that the Company will need additional working capital for its planned activity and to service its debt. GREEN PLANET: Amends Sept. 30 Form 10-Q to Correct "Typo" Errors ---------------------------------------------------------------- As reported previously in the TCR, Green Planet Group, Inc., reported net income of $17.6 million on $6.3 million of sales for the three months ended Sept. 30, 2011, compared with a net loss of $2.9 million on $10.3 million of sales for the three months ended Sept. 30, 2010. For the six months ended Sept. 30, 2011, the Company has net income of $15.9 million on $15.4 million of sales, compared with a net loss of $4.8 million on $20.3 million of sales for the six months ended Sept. 30, 2010. The Company's balance sheet at Sept. 30, 2011, showed $3.9 million in total assets, $21.0 million in total liabilities, and a stockholders' deficit of $17.1 million. On Nov. 23, 2011, the Company filed Amendment No. 1 to its Quarterly Report on Form 10-Q for the three months ended Sept. 30, 2011, as filed on Nov. 21, 2011, to correct typographical errors, as follows: Page 3 - Condensed Consolidated Balance Sheets: (a) To correct the amount of "Accounts receivable, net of allowance for doubtful accounts" under the column for March 31, 2011, from $3,019,691 to $3,019,692; (b) To correct the amount of "Total Current Assets" under the column for Sept. 30, 2011, from $2,234,267 to $2,324,267; and (c) To correct the amount of "Accumulated deficit" under the column for Sept. 30, 2011, from ($35,828,304) to ($35,828,303); Page 4 - Condensed Consolidated Statements of Operations - To correct the amount of "Depreciation and amortization" under Operating Expenses, under the column for "For the three months ended Sept. 30, 2011" from $36,187 to $35,187; Page 5 - Condensed Consolidated Statements of Stockholders' Equity/(Deficit) - To remove the $15,883,831 from the column entitled "Accumulated Deficit"inadvertently inserted under the line entitled "Shares issued for interest payments;" Page 6 - Condensed Consolidated Statements of Cash Flows: (a) To correct the amount of "Amortization of debt discount and consulting contracts" under the column "For the six months ended Sept. 30, 2010" from ($52,296) to ($52,294); (b) To correct the amount of "Gain on deconsolidation" under the column "For the six months ended Sept. 30, 2011" from $18,472,331 to (18,472,331); (c) To correct the amount of "Other assets" under the column "For the six months ended Sept. 30, 2010" from $45,289 to $45,288; (d) To correct the amount of "Accrued liabilities" under the column "For the six months ended Sept. 30, 2010" from $4,123,297 to $4,252,869; (e) To correct the amount of "Cash provided (used) by operating activities" under the column "For the six months ended Sept. 30, 2010" from $106,882 to $236,424; and (f) Under the section entitled "Non-Cash Activities," to correct the descriptions for the first four transactions to read as follows: "Common Stock issued for services, payable and interest," "Common Stock issued for services, payable and interest (par value)," "Additional paid-in capital for services, payable and interest" and "Net non-cash stock activities related to services, payable and interest;" Page 8 - In the table summarizing the effects on Sept. 30, 2011 Condensed Consolidated Balance Sheet of the deconsolidation of the two entities effective Aug. 18, 2011 - To correct the amount reflected for "Gain from deconsolidation of bankruptcy subsidiaries" from $18,471,331 to $18,472,331; Page 17 - Note 9 - Income Taxes: (a) In the first paragraph, to correct the amount of the recorded valuation allowance from "approximately $17,200,000" to "approximately $17,100,000;" and (b) In the second paragraph, to correct the amount of net operating loss carry forwards from "approximately $42,100,000" to "approximately $41,700,000;" Page 26 - In the table relating to segment information for the three months ended Sept. 30, 2011 - To correct the amount of the line "Gain from deconsolidation" under the column entitled "Staffing" and under the column entitled "Consolidated" from $17,605,037 to $18,472,331; Page 29 - In the section entitled "RESULTS OF OPERATIONS:" (a) To correct the first paragraph to reflect that the "following table sets forth our results of operations for the three and six months ended Sept. 30, 2011, and 2010" instead of only for the three months ended Sept. 30, 2011, and 2010; and (b) In the table relating to the Results of Operations for the three and six months ended Sept. 30, 2011, to correct the percentage amount on the lines for "INCOME/(LOSS) BEFORE INCOME TAXES" and "NET INCOME/(LOSS)" under the column "For the three months ended Sept. 30, 2011" from 281.2% to 281.1%. A copy of the Form 10-Q/A is available for free at: http://is.gd/pjy2YP About Green Planet Scottsdale, Ariz.-based Green Planet Group, Inc., is a specialty energy conservation chemical company that produces and supplies technologies to the global transportation, industrial and consumer markets. These technologies include gasoline, oil and diesel additives for engines and other transportation-related fluids and industrial lubricants. The Company also operates an industrial staffing and employment business by providing employees to the light industrial, medical, aviation maintenance and IT industries on a national basis. * * * As reported in the TCR on July 21, 2011, Semple, Marchal & Cooper, LLP, in Phoenix, Ariz., said that Green Planet Group's significant operating losses and negative working capital raise substantial doubt about its ability to continue as a going concern. HARRISBURG, PA: McKenna Long Provides Counsel to Receiver --------------------------------------------------------- The Municipal Recovery & Restructuring group of McKenna Long & Aldridge LLP is representing Pennsylvania Governor Tom Corbett's Commonwealth Court-appointed Receiver for the City of Harrisburg, former Pennsylvania Department of Community and Economic Development (DCED) Chief Counsel David Unkovic. A team of legal, policy and financial leaders in the firm's Municipal Recovery & Restructuring group are providing counsel to Unkovic who is tasked with developing and submitting a fiscal recovery plan to the Commonwealth Court, DCED Secretary, Harrisburg City Council and Mayor of Harrisburg. "The breadth and depth of our political experience combined with our legal and financial restructuring knowledge provides us with a unique understanding of the issues faced by municipalities," said Keith Mason, co-chair of the MLA Municipal Recovery & Restructuring group. "Our team is well positioned to provide the comprehensive counsel that is critical to the fiscal recovery plan being developed by Mr. Unkovic for the City of Harrisburg." Mason, a former White House Deputy Assistant and Deputy Director for Intergovernmental Affairs to President Bill Clinton, has provided counsel on business strategy, legal and public policy issues to business leaders and public officials for 25 years. "The financial issues faced by municipalities in distress situations are similar to those faced by businesses," said Thurbert Baker, MLA partner and former attorney general for the State of Georgia. "However, municipalities are presented with a set of complex political issues that are not seen in most corporate restructurings," added Baker, who handles matters related to corporate compliance and investigations and is a former chair of the National Association of Attorneys General. Baker is working with forensic consultants hired by the Harrisburg Authority to review the financings of its incinerator, the Harrisburg Resource Recovery Facility, for possible recovery and other legal actions. MLA Municipal Recovery & Restructuring group co-chair Mark Kaufman, a 38-year veteran of judicial and non-judicial financial restructurings, is also advising Unkovic on the development of Harrisburg's fiscal recovery plan. Kaufman is the author of the firm's "Municipal Recovery & Restructuring Chapter 9 Guide" and "10 Considerations for Financially-Distressed Local Governments and Public Authorities" written for local government officials. His practice is exclusively devoted to debt restructurings and also to advising financially-distressed municipalities, special purpose districts and related government entities. About MLA Municipal Recovery The MLA Municipal Recovery & Restructuring group -- http://www.mckennalong.com/practices-municipal-recovery.html/-- includes more than 40 legal, policy and financial leaders such as former members of Congress, a governor, mayors, federal agency counsel, and chiefs of staff. The group's lawyers are noted for their work in public finance, bankruptcy, restructuring, insolvency, tax, public policy, public-private partnerships, employee benefits and labor, government contracting, government affairs and governance. The MLA Municipal Recovery & Restructuring group advises public sector clients to achieve a consensual resolution of their financial concerns without litigation and only resorting to a Chapter 9 bankruptcy when absolutely necessary. About McKenna Long & Aldridge LLP McKenna Long & Aldridge LLP -- http://www.mckennalong.com/-- is an international law firm with 475 attorneys and public policy advisors. The firm provides business solutions in the areas of public policy, government contracts, environment and energy regulations, climate change, project finance, and litigation. About Harrisburg, Pennsylvania The city of Harrisburg, in Pennsylvania, is coping with debt related to a failed revamp of an incinerator. The city is $65 million in default on $242 million owing on bonds sold to finance an incinerator that converts trash to energy. Four members of the City Council of Harrisburg on Oct. 11, 2011, authorized the filing of a Chapter 9 bankruptcy petition (Bankr. M.D. Pa. Case No. 11-06938) by the City of Harrisburg. Judge Mary D. France presides over the case. Mark D. Schwartz, Esq. -- markschwartz6814@gmail.com -- and David A. Gradwohl, Esq., serve as counsel. The petition estimated $100 million to $500 million in assets and debts. Susan Wilson, the city's chairperson on Budget and Finance, signed the petition. The city council voted 4-3 on Oct. 11, 2011, to authorize the Chapter 9 municipal bankruptcy filing. The city claims to be insolvent, unable to pay its debt and in imminent danger of having tax revenue seized by holders of defaulted bonds. The city said in court papers it is in imminent jeopardy through six pending legal actions by creditors with respect to a number of outstanding bond issues relating to the Harrisburg Materials, Energy, Recycling and Recovery Facilities, which processes waste into steam and electrical energy. The owner and operator of the incinerator is The Harrisburg Authority, which is unable to pay the bond issues. The city is the primary guarantor under each bond issue. The lawsuits were filed by Dauphin County, where Harrisburg is located, Joseph and Jacalyn Lahr, TD Bank N.A., and Covanta Harrisburg Inc. Two days after the Chapter 9 filing on Oct. 11, the state of Pennsylvania filed a motion to dismiss the case as being unauthorized. Later, the state adopted a new law allowing the governor to appoint a receiver who may join those seeking dismissal. Harrisburg Mayor Linda D. Thompson and the state of Pennsylvania have objected to the bankruptcy filing. Mayor Thompson is represented in the case by Kenneth W. Lee, Esq., Christopher E. Fisher, Esq., Beverly Weiss Manne, Esq., and Michael A. Shiner, Esq., at Tucker Arensberg, P.C. Counsel to the Commonwealth of Pennsylvania are Neal D. Colton, Esq., Jeffrey G. Weil, Esq., Eric L. Scherling, Esq., at Cozen O'Connor. The governor of Pennsylvania selected an individual to serve as receiver and take over the city. HARRISBURG, PA: Judge Declines to Reverse Dismissal Ruling ---------------------------------------------------------- Katy Stech, writing for Dow Jones' Daily Bankruptcy Review, reports that Judge Mary D. France has denied the request of the Harrisburg city council to revive the city's Chapter 9 bankruptcy case, ruling that the group appealed her decision three days after the deadline. In her ruling filed Tuesday afternoon, Judge France pointed out that city councilors waited until Saturday to challenge her ruling, missing the court's two-week deadline by three days. Judge France dismissed the case verbally at a hearing on Nov. 23, saying she wanted to render her decision swiftly to ease confusion that had ensued over the city's operations. She didn't file a written explanation of her decision until Dec. 5 -- a milestone, DBR relates, that City Council attorney Mark Schwartz, Esq., mistakenly thought began the two-week window to appeal the 30-page ruling. According to DBR, the Court said the attorney's "misunderstanding of the time limits for filing an appeal does establish a basis for relief." She said, "Inadvertence, ignorance of the applicable rules, or mistake in construing the rules does not constitute excusable neglect." About Harrisburg, Pennsylvania The city of Harrisburg, in Pennsylvania, is coping with debt related to a failed revamp of an incinerator. The city is $65 million in default on $242 million owing on bonds sold to finance an incinerator that converts trash to energy. Four members of the City Council of Harrisburg on Oct. 11, 2011, authorized the filing of a Chapter 9 bankruptcy petition (Bankr. M.D. Pa. Case No. 11-06938) by the City of Harrisburg. Judge Mary D. France presides over the case. Mark D. Schwartz, Esq. -- markschwartz6814@gmail.com -- and David A. Gradwohl, Esq., serve as counsel. The petition estimated $100 million to $500 million in assets and debts. Susan Wilson, the city's chairperson on Budget and Finance, signed the petition. The city council voted 4-3 on Oct. 11, 2011, to authorize the Chapter 9 municipal bankruptcy filing. The city claims to be insolvent, unable to pay its debt and in imminent danger of having tax revenue seized by holders of defaulted bonds. The city said in court papers it is in imminent jeopardy through six pending legal actions by creditors with respect to a number of outstanding bond issues relating to the Harrisburg Materials, Energy, Recycling and Recovery Facilities, which processes waste into steam and electrical energy. The owner and operator of the incinerator is The Harrisburg Authority, which is unable to pay the bond issues. The city is the primary guarantor under each bond issue. The lawsuits were filed by Dauphin County, where Harrisburg is located, Joseph and Jacalyn Lahr, TD Bank N.A., and Covanta Harrisburg Inc. The Commonwealth of Pennsylvania, the County of Dauphin, and Harrisburg city mayor Linda D. Thompson and other creditors and interested parties objected to the petition. The state later adopted a new law allowing the governor to appoint a receiver. Mayor Thompson is represented in the case by Kenneth W. Lee, Esq., Christopher E. Fisher, Esq., Beverly Weiss Manne, Esq., and Michael A. Shiner, Esq., at Tucker Arensberg, P.C. Counsel to the Commonwealth of Pennsylvania are Neal D. Colton, Esq., Jeffrey G. Weil, Esq., Eric L. Scherling, Esq., at Cozen O'Connor. Late in November 2011, the Bankruptcy Judge dismissed the Chapter 9 case because (1) the City Council did not have the authority under the Optional Third Class City Charter Law and the Third Class City Code to commence a bankruptcy case on behalf of Harrisburg and (2) the City was not specifically authorized under state law to be a debtor under Chapter 9 as required by 11 U.S.C. Sec. 109(c)(2). HUBBARD PROPERTIES: IWA Secured Claim Paid Over 15-Year Period -------------------------------------------------------------- Hubbard Properties, LLC, has filed an Amended Disclosure Statement in connection with its Amended Plan of Reorganization dated as of Nov. 15, 2011. A hearing to consider the adequacy of the Disclosure Statement is scheduled for Dec. 20, 2011, at 11:00 a.m. The Plan provides that the property of the Debtor's Estate, together with any property of the Debtor that is not property of its Estate and that is not specifically disposed of or abandoned pursuant to the Plan, will revest in the Debtor on the Effective Date. The Plan segregates the various claims and interests in the Debtor into 8 Classes. Class 1 Unsecured Priority Claims (Estimated at $10,000) Class 2 Secured Tax Claim of Pinellas County Tax Collector Class 3 IWA Secured Claim (Amount estimated between $15,000,000 and $19,000,000 based on possible valuation of collateral) Class 4(A) Secured Claim of Butterfield (Estimated at $15,000) Class 4(B) Secured Claim of Nagasti (Estimated at $15,000) Class 5 Administrative Convenience Claims (Estimated at $5,000) Class 6 General Unsecured Claims (Non-Affiliated General Unsecured Claims estimated at approximately $1,200,000) Class 7 IWA Deficiency Claims (Estimated at range of $3,000,000 - $7,500,000 prior to setoff, offset, objection, or counterclaim) Class 8 Equity Interests Classes 1, 2 and 8 are Unimpaired. Classes 3, 4(A), 4(B), 5, 6 and 7 are Impaired and Entitled to Vote. The Class 2 Allowed Secured Tax Claims of the Pinellas County Tax Collector for real and tangible personal property taxes for 2011 will be paid on or before March 31, 2012. The Class 3 IWA Secured Claim will be satisfied through the Debtor's delivery of the IWA Note A and IWA Note B on the Effective Date. The IWA Note A will provide for monthly payments of interest only for the first 60 months following the Effective Date. Unless the Holder of the IWA Claim makes an 1111(b) election, on the 5th Anniversary Date, any outstanding principal balance remaining on the IWA Note B will be added to the outstanding principal balance of the IWA Note A and the entire cumulative balance will be paid through monthly payments of principal and interest thereafter based on a 25-year amortization schedule with a balloon payment of all principal and accrued interest due on the tenth Anniversary Date. The IWA Note B will provide for (i) monthly payments of interest only for the 60 months following the Effective Date, plus any Excess Cash Flow payments made within 20 days of the first through 5th Anniversary Dates, which will be credited to reduce the principal amount of IWA Note B. Unless the Holder of the IWA Claim makes an 1111(b) election, on the 5th Anniversary Date, the entire outstanding principal balance of IWA Note B will be added to the principal balance of IWA Note A and paid as provided above. Holders of Allowed Class 6 Unsecured Claims (excluding Holders of Allowed Class 6 Unsecured Claims that are Affiliates of the Debtor) will receive a payment within 10 Business Days of the Effective Date of 8% of such Holder's Allowed Class 6 Unsecured Claim. Within 30 days of the Debtor's receipt of the BP Claim Proceeds, the Holders of Allowed Class 6 Claims will receive an additional distribution equal to such Holder's Pro-Rata share of 40% of the BP Claim Proceeds. In the event that IWA does not make the IWA Election, any IWA Deficiency Claim will be paid in annual installments equal to the Excess Cash Flow Payment with the first payment to be made on the 6th Anniversary Date of the Effective and continuing on the Anniversary Date of each succeeding year until the earlier of (a) the date that the Allowed IWA Deficiency Claim is paid in full or (b) June 30, 2021. All existing Equity Interests in the Debtor will be canceled as of the Effective Date and new membership interests representing one hundred percent (100%) of the membership interests in the Reorganized Debtor will be issued to persons or entities that provided the Exit Funding. A copy of the amended disclosure statement is available for free at http://bankrupt.com/misc/hubbardproperties.amendedDS.pdf About Hubbard Properties Hubbard Properties owns and operates a retail and entertainment complex, located in Madeira Beach, Florida, commonly known as the John's Pass Boardwalk. Investors Warranty of America, Inc. (IWA) claims that it is owed $28,404,980 secured by a mortgage on the Property and an assignment of rents and related security interests. Hubbard Properties, LLC, filed for Chapter 11 protection (Bankr. M.D. Fla. Case No. 11-01274) in Tampa, Florida, on Jan. 27, 2011. David S. Jennis, Esq., and James Allen McPheeters, Esq., at Jennis & Bowen, P.L., in Tampa, Fla., serve as bankruptcy counsel. The Debtor also tapped Bacon & Bacon, P.A., as special counsel; Tony Buzbee and The Buzbee Law Firm as special counsel in connection with the assessment and recovery of the Debtor's BP oil spill claim, Van Middlesworth and Company, P.A., as accountant; and Claims Strategies Group, LLC, as claim consultant. The law firm of Hill, Ward and Henderson, P.A., represents the Official Committee of Unsecured Creditors as counsel. In its amended schedules, the Debtor disclosed $12,572,058 in assets and $23,849,378 in liabilities. IEDA ENTERPRISE: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: IEDA Enterprise, Inc. dba Dallas Roadster 825 Avenue K Plano, TX 75074 Bankruptcy Case No.: 11-43726 Chapter 11 Petition Date: December 12, 2011 Court: United States Bankruptcy Court Eastern District of Texas (Sherman) Judge: Brenda T. Rhoades Debtor's Counsel: Robert T. DeMarco, Esq. DEMARCO-MITCHELL, PLLC 1255 West 15th St., 805 Plano, TX 75075 Tel: (972) 578-1400 Fax: (972) 346-6791 E-mail: robert@demarcomitchell.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $1,000,001 to $10,000,000 The petition was signed by Bahman Khobahy, president. The Debtor did not file its list of largest unsecured creditors when it filed its petition. IMAGINART LLC: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Imaginart, LLC aka Imaginart Publishing dba Elite Art Events a Nevada limited liability company 26439 Ranch Parkway South, #105 Lake Forest, CA 92630 Bankruptcy Case No.: 11-26785 Chapter 11 Petition Date: December 7, 2011 Court: United States Bankruptcy Court Central District Of California (Santa Ana) Judge: Erithe A. Smith Debtor's Counsel: Michael G Spector, Esq. LAW OFFICES OF MICHAEL G. SPECTOR 2677 N Main St Ste 800 Santa Ana, CA 92705 Tel: (714) 835-3130 Fax: (714) 558-7435 E-mail: mgspector@aol.com Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb11-26785.pdf The petition was signed by Ernest Lewis, managing member. INTEGRATED ENVIRONMENTAL: Engages TrueLogix to Sell EcaFlo ---------------------------------------------------------- Integrated Environmental Technologies, Ltd., announced: * a change in strategic focus from selling capital equipment to selling consumable products; * the establishment of a new Utah production facility, which is the first in a planned network of nationwide facilities to produce and distribute EcaFlo solutions; * the engagement of a sales management organization to organize, build and manage a network of independent sales representatives to directly sell EcaFlo solutions to commercial and industrial customers; and * the receipt of initial purchase orders for EcaFlo solutions, the delivery of which are scheduled to begin later this month. The Company's adoption of the new sales and marketing strategy focuses on the sale of EcaFlo solutions directly to industrial and commercial users. While the Company will continue to lease EcaFlo equipment to certain customers, its primary focus will be on the sale of EcaFlo solutions to the hospital, janitorial and sanitation and food processing markets. The Company intends to establish several manufacturing sites located throughout the United States where the EcaFlo solutions will be produced using the Company's proprietary EcaFlo equipment. The Company currently manufactures EcaFlo solutions in Little River, South Carolina and has established manufacturing capabilities in Salt Lake City, Utah. In connection with this strategy, the Company has engaged TrueLogix, LLC, to provide sales management services to the Company and to develop a national sales network. TrueLogix's principals have over 50 years of domestic and international experience in the sales and marketing of various household goods and janitorial and sanitation products and in establishing and managing independent sales representative networks. The Company and TrueLogix have recruited several independent sales representatives and are in the process of finalizing the contracts with the respective sales representatives. In addition, the Company has secured its first purchase orders from customers for EcaFlo solutions. The Company is required to pay TrueLogix a monthly service fee that is contingent upon the amount of commissionable sales generated during a given month, as defined in the Agreement. In addition, the Company issued warrants to purchase an aggregate of 2,000,000 shares of the Company's common stock to TrueLogix and certain of its principals. David R. LaVance, Chairman, President and Chief Executive Officer of Integrated, commented, "Over the past several months, our management team has extensively reviewed the Company's products and market opportunities. In our discussions with potential customers, we were repeatedly told that they would prefer to buy our EcaFlo solutions rather than make a capital investment in the EcaFlo equipment. It became evident that, while our EcaFlo equipment is a high quality product, the biggest opportunity for the Company is in the distribution and sale of our EcaFlo solutions. We believe there is a substantial market opportunity for our environmentally friendly disinfectant, EcaFlo Anolyte, which destroys superbugs and other harmful bacteria and viruses without toxic residue, in the hospital, janitorial, sanitation and food processing markets. We are excited about our relationship with TrueLogix and believe their sales and marketing experience will be a great asset to the Company as we implement our new sales and marketing strategy." Howard B. Gee, a principal of TrueLogix, observed "Based on my conversations with several potential customers, I believe there is a tremendous market opportunity for EcaFlo Anolyte, which we believe is an effective, non-toxic and cost competitive alternative to bleach and other disinfecting solutions. In a time when the public wants greener, effective disinfectants, we see EcaFlo Anolyte having significant market appeal. We believe that Integrated's proprietary EcaFlo equipment provides a distinct advantage because it can produce solutions in a reliable and consistent manner." The Company continues to work with Benchmark Performance Group, Inc., and Benchmark's affiliate, Red Oak Water Transfer, Inc., both wholly-owned subsidiaries of Rockwater Energy Solutions, Inc., on the deployment of EcaFlo Anolyte in the water transfer operations supporting hydraulic fracturing of oil and gas. EcaFlo Anolyte is EPA-registered for oil and gas applications and can be used as a biocide to treat produced, make-up and flow-back water associated with hydraulic fracturing of oil and gas. Mr. LaVance commented "We believe that introducing EcaFlo Anolyte into the water delivery process for oil and gas sites is a cost effective way for production companies to deliver an effective biocide that will kill the various bacteria that create significant problems in the hydraulic fracturing and production process. With all of the recent concerns about the potential environmental impact of the various chemicals used in hydraulic fracturing, we believe that EcaFlo Anolyte provides a compelling alternative to traditional biocides and that a large market opportunity exists." About Integrated Environmental Little River, S.C.-based Integrated Environmental Technologies, Ltd., through its wholly-owned subsidiary I.E.T., Inc., designs, manufactures, and sells EcaFlo(R) equipment, which utilizes the Electro-Chemical Activation process to generate environmentally responsible EcaFlo(R) solutions - anolyte and catholyte - for use in managing and controlling bacteria, fungi, viruses and other unwanted microorganisms in an effective and economically beneficial manner over a variety of commercial and industrial applications. The Company's balance sheet at June 30, 2010, showed $1,293,820 in total assets, $988,674 in total current liabilities, and $305,146 in stockholders' equity. Following the Company's annual results for 2009, Weaver & Martin LLC, in Kansas City, Mo., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company's ability to continue as a going concern is dependent upon obtaining additional sources of capital or borrowings. In the Form 10-Q, the Company acknowledges that as a result of its deficiency in working capital at December 31, 2009 and June 30, 2010, its auditors expressed substantial doubt about its ability to continue as a going concern. The Company says its ability to continue as a going concern is dependent upon attaining profitable operations. INT'L ENVIRONMENTAL: Wants Case Reopened to Accept Sale Offer ------------------------------------------------------------- International Environmental Solutions Corporation asks the U.S. Bankruptcy Court for the Central District of California to reopen the Chapter 11 case, and allow it to cure the defect and file the List of Equity Security Holders. On Dec. 1, 2011, the Court dismissed the Debtor's case without the 180 day restriction, to the behest of shareholder Steven Thompson. Mr. Thompson has asked that the Court dismiss and expunge, nullify and void the Bankruptcy Case explaining that the sale of a valuable equipment "The Crown Jewels" would be detrimental to the Debtor. The Debtor relates that it filed these motions on Nov. 18, 2011: 1. motion to sell 40-TPD unit and related equipment and 125- TPD; sell 8-TPD unit; to authorize to accept a back up offer; to authorize the Debtor or the buyer to remove the equipment under reasonable business conditions; 2. motion to reject the lease to sale and security agreement with Green Gas, LLC, as an executory contract; remove the Debtor's 40-TOD unit and related equipment from The Green Gas, LLC Facility under reasonable business conditions; and 3. motion for order limiting scope of notice. The hearing on the motions was set for Dec. 13. The Debtor explains that it has received an offer to purchase its assets for several million dollars on the condition that the sale close by the end of the year. Moreover, according to the Debtor, to require it to refile the case and refile its motions will cause a substantial hardships to the Debtor and other parties-in-interest. The Debtor promised that if the motion is granted it will file a List of Equity Security Holders About International Environmental Solutions Menifee, California-based International Environmental Solutions, filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11- 44755) on Nov. 11, 2011. Judge Wayne E. Johnson presides over the case. Howard S. Levine, Esq. -- howard@cypressllp.com -- at Cypress LLP, serves as the Debtor's counsel. The Debtors disclosed $28,128,636 in assets and $11,173,895 in liabilities. The petition was signed by Gary Allen, president. JAMES RIVER: Wellington Management Discloses 1.3% Equity Stake -------------------------------------------------------------- In an amended Schedule 13G filing with the U.S. Securities and Exchange Commission, Wellington Management Company, LLP, disclosed that, as of Nov. 30, 2011, it beneficially owns 476,638 shares of common stock of James River Coal Company representing 1.34% of the shares outstanding. As previously reported by the TCR on April 13, 2011, Wellington Management disclosed beneficial ownership of 3,919,238 shares of common stock or 11.32% equity stake. A full-text copy of the amended Schedule 13G is available for free at http://is.gd/NRru7e About James River Headquartered in Richmond, Virginia, James River Coal Company (NasdaqGM: JRCC) -- http://www.jamesrivercoal.com/-- mines, processes and sells bituminous steam and industrial-grade coal primarily to electric utility companies and industrial customers. The company's mining operations are managed through six operating subsidiaries located throughout eastern Kentucky and in southern Indiana. The Company's balance sheet at Sept. 30, 2011, showed $1.38 billion in total assets, $929.56 million in total liabilities, and $451.26 million in total shareholders' equity. * * * James River carries a 'B' corporate credit rating from Standard & Poor's Ratings Services, and 'B3' corporate family rating from Moody's Investors Service. As reported by the TCR on March 25, 2011, Moody's Investors Service upgraded James River Coal Company's Corporate Family Rating to 'B3' from 'Caa2'. The rating upgrade reflects post- acquisition potential for significant increase in JRCC's metallurgical coal production, increase in operational diversity within Central Appalachia, and greater access to export markets. The S&P corporate rating was upgraded from 'B-' in March 2011. "The upgrade reflects S&P's view that the IRP acquisition provides James River Coal exposure to the attractive metallurgical coal market," said Standard & Poor's credit analyst Fred Ferraro. "The acquisition also adds management experience in overseas marketing, and expands the company's reserve life. Furthermore, S&P expects that it will be funded in a way that is consistent with the current capital structure so as to maintain the current credit metrics." JAMESON INNS: Section 341(a) Meeting Continued to Jan. 12 --------------------------------------------------------- The U.S. Trustee for Region 3 will continue a meeting of creditors of JER/Jameson MEZZ Borrower II, LLC, et. al., on Jan. 12, 2012, at 1:00 p.m. The meeting will be held at U. S. Federal Bldg.; 844 King Street, Room 5209, Wilmington, Delaware. The meeting was originally set on Dec. 6, 2011. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. About Jameson Inns Founded in 1987, Jameson is a chain of 103 small, budget hotels operating under the Jameson brand in the Southeast and Midwest. The Jameson properties are operated under the names Jameson Inn and Signature Inn. The hotels are based in Smyrna, Georgia. The chain was taken private in a 2006 buyout by JER Partners, a unit of real-estate investor J.E. Robert Cos. JER then put $330 million of debt on the chain to finance the buyout. At the top of the list is a $175 million mortgage loan with Wells Fargo Bank NA serving as special servicer. There are four tranches of mezzanine loans, each for $40 million. The collateral for each of the Mezz Loans is the equity interest in the entity or entities immediately below the borrower of each Mezz Loan. All of the mezzanine loans matured in August. JER/Jameson NC Properties LP and JER/Jameson Properties LLC are borrowers under the loan with Wells Fargo. The mortgage loan is secured by mortgages on hotel properties. The first set of foreclosure sales were set for Nov. 1, 2011. The Mortgage Borrowers have not sought bankruptcy protection. Colony Capital affiliates, CDCF JIH Funding LLC and ColFin JIH Funding LLC, hold the first and second mezzanine loans. The First Mezz Loan is secured by a pledge of JER/Jameson Mezz Borrower I LLC's 100% interest in the Mortgage Borrowers. Prior to the maturity default, the Colony JIH Lenders purchased the Second Mezz Loan from a previous holder. The Second Mezz Loan is secured by a pledge of JER/Jameson Mezz Borrower II's 100% membership interest in the First Mezz Borrower. Gramercy Warehouse Funding I LLC and Gramercy Loan Services LLC hold a controlling participation interest in the Third Mezz and Fourth Mezz Loans. JER Investors Trust Inc. holds the remaining participation interests in the Third Mezz and Fourth Mezz Loans. JER/Jameson Holdco LLC, an affiliate of the Mortgage Borrowers, owns the 100% equity interest in the Fourth Mezz Borrower. Gramercy took over its mezzanine borrower in August. JER/Jameson Mezz Borrower II LLC filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 11-13338) on Oct. 18, 2011, to prevent foreclosure by Colony. The Chapter 11 filing had the effect of preventing Colony from wiping out Gramercy's interest. Seven days later, JER/Jameson Mezz Borrower I LLC filed for bankruptcy (Bankr. D. Del. Case No. 11-13392) on Oct. 25, 2011. Judge Mary F. Walrath presides over the case. Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, serves as counsel to both Debtors. Epiq Bankruptcy Solutions, LLC, serves as its noticing, claims and balloting agent, and Houlihan Lokey Howard & Zukin Capital Inc. serves as its investment banker. Each of the Debtors estimated $100 million to $500 million in assets and $10 million to $50 million in debts. The petitions were signed by James L. Gregory, vice president. Colony specializes in real estate and has roughly $34 billion of assets under management. Colony is represented in the case by Pauline K. Morgan, Esq., John T. Dorsey, Esq., Margaret Whiteman Greecher, Esq., and Patrick A. Jackson, Esq., at Young Conaway Stargatt & Taylor LLP; and Lindsee P. Granfield, Esq., Sean A. O'Neil, Esq., and Jane VanLare, Esq., at Cleary Gottlieb Steen & Hamilton LLP. KOREA TECHNOLOGY: Examiner Can Hire Piercy Bowler as Accountants ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Utah authorized Mark D. Hashimoto, in his capacity as examiner in the bankruptcy case of Korea Technology Industry America, Inc., et al., to retain Piercy Bowler Taylor & Kern as his accountants and financial advisors. Piercy Bowler will charge the Debtors for services on an hourly basis. The hourly rate of Piercy Bowler's staff accountant, who will be assisting in the case, is $120 to $270. About Korea Technology Korea Technology Industry America, Inc., is a subsidiary of Seoul- based Korea Technology Industry Co. that tried to squeeze crude oil from Utah's sandy ridges. Korea Technology Industry America, Uintah Basin Resources LLC, and Crown Asphalt Ridge L.L.C., filed separate Chapter 11 bankruptcy petitions (Bankr. D. Utah Case Nos. 11-32259, 11-32261, and 11-32264) on Aug. 22, 2011. The cases are jointly administered under KTIA's case. Steven J. McCardell, Esq., and Kenneth L. Cannon II, Esq., at Durham Jones & Pinegar, in Salt Lake City, serve as the Debtors' counsel. The Debtors disclosed US$35,246,360 in assets and US$38,751,528 in debts. Richard A. Wieland, the United States Trustee for Region 19, has appointed three members to the Official Committee of Unsecured Creditors. L.A. DODGERS: Files Amended Schedules of Assets and Liabilities ------------------------------------------------------------- Los Angeles Dodgers LLC filed amended 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 $246,059 B. Personal Property $77,717,675 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $150,000 E. Creditors Holding Unsecured Priority Claims $1,000 F. Creditors Holding Unsecured Non-priority Claims $5,639,487 ------------ ---------- TOTAL $77,963,734 $5,790,487 About 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. In its schedules, the LA Dodgers baseball club disclosed $77,963,734 in assets and $4,695,702 in liabilities. LA Real Estate LLC disclosed $161,761,883 in assets and $0 in liabilities. 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. Public relations specialist Kekst and Company has been hired for crisis support. Covington & Burling LLP serves as special counsel. An official committee of unsecured creditors has been appointed in the case. The panel has tapped Lazard Freres & Co. as financial adviser and investment banker, and Morrison & Foerster LLP and Pinckney, Harris & Weidinger, LLC as counsel. The LA Dodgers is the 12th sports team in North America to have Journal. sought bankruptcy protection, according to The Wall Street 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. L.A. DODGERS: Win Right to Auction Off Television Rights -------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the Los Angeles Dodgers came out on top at the end of a two-day hearing when the U.S. Bankruptcy Judge in Delaware said that he will allow the team to auction off future television broadcasting rights. Fox Entertainment Group Inc. had opposed the request. Fox's contract precludes the club from negotiating with anyone else until November 2012. Fox's witness said broadcasting rights are worth $100 million. According to the Bloomberg report, the judge said he will issue a written opinion in a day or two. Fox said it will appeal. Fox argued unsuccessfully that soliciting other offers now is precluded by the so-called right of first negotiation in the current television contract that continues through the 2013 season. The first negotiation right on its face would prevent the Dodgers from conducting talks with anyone else until late 2012. Then, another provision in the Fox contract would kick in, giving the incumbent a limited right of first refusal. The report relates that Fox took the position that soliciting other bids, even with court authorization, amounts to a breach of the existing contract that can't be cured even if the Dodgers eventually drop the idea of selling television rights to someone else. The Dodgers' lawyer told the judge yesterday that any damages won't be "material." Mr. Rochelle notes that Fox previously scheduled a Dec. 27 hearing on a motion to dismiss the Dodgers' Chapter 11 case. The motion has less chance of success now that the judge is allowing an early television-rights sale. At the same Dec. 27 hearing, the team will seek approval of a settlement with the commissioner of Major League Baseball which requires selling the club by April 30. About 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. In its schedules, the LA Dodgers baseball club disclosed $77,963,734 in assets and $4,695,702 in liabilities. LA Real Estate LLC disclosed $161,761,883 in assets and $0 in liabilities. 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. Public relations specialist Kekst and Company has been hired for crisis support. Covington & Burling LLP serves as special counsel. An official committee of unsecured creditors has been appointed in the case. The panel has tapped Lazard Freres & Co. as financial adviser and investment banker, and Morrison & Foerster LLP and Pinckney, Harris & Weidinger, LLC as counsel. The LA Dodgers is the 12th sports team in North America to have sought bankruptcy protection. 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. LAGUARDIA ASSOCIATES: Hotel Operator Faces Involuntary Bankruptcy ----------------------------------------------------------------- LaGuardia Associates, L.P., owner and operator of the LaGuardia Plaza Hotel, formerly known as LaGuardia Crowne Plaza Hotel, has been placed in involuntary Chapter 11 bankruptcy by three trade creditors, allegedly holding roughly $171,000 in debt. The involuntary petition was filed Dec. 6. Judge Stephen Raslavich will handle the case, replacing Judge Jean K. FitzSimon. C-III Asset Management LLC has filed an emergency motion with the Court pursuant to 11 U.S.C. Section 543(d) to excuse a receiver from compliance with Section 543(a)-(b), which requires the custodian of a debtor's property to turn over that property to the bankruptcy estate. ECBM, Landmark Food Corp. and Penn Glass filed an involuntary Chapter 11 petition (Bankr. E.D. Pa. Case No. 11-19334) against King of Prussia, Pennsylvania-based LaGuardia Associates L.P. on Dec. 6, 2011. The petitioning creditors are represented by: Ashely M. Chan, Esq. HANGLEY ARONCHICK SEGAL & PUDLIN One Logan Square, 27th Floor Philadelphia, PA 19103 Tel: (215) 496-7050 E-mail: achan@hangley.com This is the second bankruptcy for LaGuardia Associates. The company and its debtor-affiliate, Field Hotel Associates LP, sought Chapter 11 protection (Bankr. E.D. Pa. Case No. 04-34514) on Oct. 29, 2004. Martin J. Weis, Esq., at Dilworth Paxon LLP, represented the Debtors as counsel in the 2004 case. Ashely M. Chan, Esq., and Myron Alvin Bloom, Esq., at Hangley Aronchick Segal & Pudlin, represented the Official Committee of Unsecured Creditors. In its 2004 petition, LaGuardia Associates estimated assets and debts of $10 million to $50 million. In March 2007, the Bankruptcy Court confirmed the Third Amended Chapter 11 Liquidation Plan filed by U.S. Bank National Association, as successor in interest to SunTrust Bank, for Field Hotel Associates. A copy of the Disclosure Statement is available at http://www.researcharchives.com/bin/download?id=070123221629 LAGUARDIA ASSOCIATES: Court Keen on Collecting Full Filing Fee -------------------------------------------------------------- The Bankruptcy Court set -- but later cancelled -- a Dec. 22 hearing wherein it would require the creditors that placed LaGuardia Associates, L.P., in bankruptcy to show cause why the involuntary Chapter 11 case should not be dismissed for failure to pay the remaining balance of the filing fee in the amount of $7 due Dec. 6. The Notice of Hearing to Show Cause was posted on the case docket Dec. 9, three days after the filing of the petition. The hearing was cancelled Dec. 12 upon payment of the $7 balance. The petitioning creditors paid a filing fee of $1,039 when they filed the petition, according to information on the case docket. About LaGuardia Associates ECBM, Landmark Food Corp. and Penn Glass filed an involuntary Chapter 11 petition (Bankr. E.D. Pa. Case No. 11-19334) against King of Prussia, Pennsylvania-based LaGuardia Associates L.P. on Dec. 6, 2011. LaGuardia Associates owns and operates the LaGuardia Plaza Hotel, formerly known as LaGuardia Crowne Plaza Hotel. The petitioning creditors alleged holding roughly $171,000 in debt. Judge Stephen Raslavich oversees the case, replacing Judge Jean K. FitzSimon. The petitioning creditors are represented by Ashely M. Chan, Esq., at Hangley Aronchick Segal & Pudlin. This is the second bankruptcy for LaGuardia Associates. The company and its debtor-affiliate, Field Hotel Associates LP, sought Chapter 11 protection (Bankr. E.D. Pa. Case No. 04-34514) on Oct. 29, 2004. Martin J. Weis, Esq., at Dilworth Paxon LLP, represented the Debtors as counsel in the 2004 case. Ashely M. Chan, Esq., and Myron Alvin Bloom, Esq., at Hangley Aronchick Segal & Pudlin, represented the Official Committee of Unsecured Creditors. In its 2004 petition, LaGuardia Associates estimated assets and debts of $10 million to $50 million. In March 2007, the Bankruptcy Court confirmed the Third Amended Chapter 11 Liquidation Plan filed by U.S. Bank National Association, as successor in interest to SunTrust Bank, for Field Hotel Associates. A copy of the Disclosure Statement is available at http://www.researcharchives.com/bin/download?id=070123221629 LA VILLITA: Plan to Pay Unsec. Creditors Over 3-Year Period ----------------------------------------------------------- On Nov. 18, 2011, United States Chief Bankruptcy Judge conditionally approved the disclosure statement explaining La Villita Motor Inns, J.V.'s proposed Plan of Reorganization. The Plan proposes to pay the Lender in accordance with the Loan Modification Agreement. The Plan proposes to pay the holders of General Unsecured Claims over a period of not more than three (3) years from the Effective Date. All Cash necessary for the Reorganized Debtor to make payments pursuant to the Plan will be obtained from the Debtor's existing Cash Balances, the Subordinated Loan and the operations of the Debtor or Reorganized Debtor. The Plan contemplates that the Tranche A Loan due to the Lender will mature on Jan. 1, 2015. The Debtor intends to refinance the Tranche A Loan on or before such date. Equity Interests will retain their Equity Interests in the Debtor as they existed on the Petition Date. On or before the Effective Date, the holder of Equity Interests will provide the Subordinated Loan which will be used to pay down the Tranche A Loan and pay to ORIX the Loan Modification Fee (as defined in the Term Sheet). Insider Claims will be converted to equity on the Effective Date in full and final satisfaction, discharge, and release of the Insider Claims. Classification Summary The Plan segregates the various Claims against the Debtor and Interests in the Debtor into 5 Classes: Class 1. Priority Secured Tax Claims Class 2. Lender Secured Claim Class 3. General Unsecured Claims Class 4. Insider Claims Class 5. Equity Interests In this case, only holders of Claims in Classes 2, 3 and 4 are impaired, or possibly impaired, by the Plan and entitled to vote to accept or reject the Plan. Claims in Classes 1 and 5 are unimpaired by the Plan, and the holders thereof are conclusively presumed to have accepted the Plan. General Unsecured Claims will receive 100% of their total Allowed Class 3 Claim which will be paid in equal monthly installments commencing on the later to occur of the first day of the month following 30 days after the Effective Date, and continuing on the same day of each successive month thereafter, until paid in full. The Debtor believes that there is at most $95,212 in valid General Unsecured Claims, although proofs of claim for General Unsecured Claims totaling $306,901 have been filed in the Debtor's case. On or before the Effective Date, the Fixed Rate Note to the Lender will be amended and restated pursuant to that certain loan modification agreement (the "Loan Modification Agreement") which, among other things, bifurcates the Note into two loan tranches -- the Tranche A Loan $[8,183,81] and the Tranche B Loan $[1,436,318]. The Tranche A Loan and the Tranche B Loan will be payable pursuant to the terms set forth in the Note, as modified by the Loan Modification Agreement, and have a Maturity Date of Jan. 1, 2015. In the event all outstanding amounts under the Tranche A Loan are paid in full on or before the Maturity Date, then the outstanding amounts under the Tranche B Loan will be deemed discharged and released. A copy of the Amended Disclosure statement for Debtor's First Amended Plan of Reorganization is available for free at: http://bankrupt.com/misc/lavillita.dkt188.pdf About La Villita Motor Inns JV San Antonio, Texas-based La Villita Motor Inns JV is a joint venture, formed on or about April 14, 1980, that owns and operates a hotel located at 100 La Villita in San Antonio, Texas, known as the Riverwalk Plaza Hotel. It filed for Chapter 11 bankruptcy protection (Bankr. Case No. 10-54864) on Dec. 17, 2010. The Debtor estimated assets at $10 million to $50 million and debts at $1 million to $10 million. The Debtor's original bankruptcy counsel was Oppenheimer, Blend, Harrison & Tate, Inc. that subsequently merged with Strasburger & Price, L.L.P. ORIX filed a motion seeking to disqualify Debtor?s counsel following the merger and the Bankruptcy Court granted ORIX's motion by order entered on Sept. 29, 2011. Hohmann, Taube & Summers, L.L.P., replaced OBHT as counsel. LEE ENTERPRISES: Hires Garden City Group as Noticing Agent ---------------------------------------------------------- Lee Enterprises Inc. and its debtor-affiliates seek Bankruptcy Court permission to hire The Garden City Group Inc. as its noticing and balloting agent. The Debtors need GCG to assist, among others, with balloting in connection with the prepackaged Chapter 11 plan filed together with the petition. Prior to commencing its chapter 11 cases, the Company solicited and obtained acceptances from its lenders and noteholders in favor of the Amended Joint Prepackaged Plan of Reorganization, dated Dec. 2, 2011. The Company will be seeking the Bankruptcy Court's approval to conduct a hearing on or about Jan. 23, 2012 to, among other things, confirm the Plan. On Nov. 7, the Debtors commenced solicitation of Plan votes from holders of claims under the Debtors' prepetition credit agreement. On Dec. 3, the Debtors solicited votes from holders of claims under the so-called Pulitzer Notes. The solicitation concluded Dec. 9. As of the voting deadline, 100% of the holders of Prepetition Credit Agreement Claims, totaling $827.9 million, had voted to accept the Plan, and 100% of the Holders of Pulitzer Notes, holding $133.8 million of claims, accepted the Plan. In total, the plan deals with $1 billion of debt that otherwise would mature in April. Lee Enterprises expects to emerge from bankruptcy within 60 days. The Debtors have made advance payments to GCG of $80,000 pre- bankruptcy. GCG's Emily S. Gottlieb attests that her firm does not have nay connections with the Debtors, their creditors, or any other party in interest in the case, and is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. 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 weekly newspapers and specialty publications in 23 states. Revenue for the 12 months ended December 2010 was $780 million. The Company has 6,200 employees, with 4,650 working full-time. The Company's balance sheet at Sept. 25, 2011, showed $1.2 billion in total assets and $1.3 billion in total liabilities. Operating loss was $103.3 million for fiscal year ended Sept. 25, 2011, on revenue of $756.1 million. Lee Enterprises and certain of its affiliates filed for chapter 11 (Bankr. D. Del. Lead Case No. 11-13918) on Dec. 12, 2011. Attorneys at Sidley Austin LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtors. LEE ENTERPRISES: Can Keep Spending as it Races to Exit Ch. 11 ------------------------------------------------------------- Dow Jones' Daily Bankruptcy Review reports that Lee Enterprises Inc. won court permission to keep paying its bills as it speeds toward a refinancing of nearly $1 billion in debt. 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 weekly newspapers and specialty publications in 23 states. Revenue for the 12 months ended December 2010 was $780 million. The Company has 6,200 employees, with 4,650 working full-time. The Company's balance sheet at Sept. 25, 2011, showed $1.2 billion in total assets and $1.3 billion in total liabilities. Operating loss was $103.3 million for fiscal year ended Sept. 25, 2011, on revenue of $756.1 million. Lee Enterprises and certain of its affiliates filed for chapter 11 (Bankr. D. Del. Lead Case No. 11-13918) on Dec. 12, 2011. Attorneys at Sidley Austin LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtors. LENOX 126: Will Seek Confirmation of Plan at Dec. 20 Hearing ------------------------------------------------------------ Lenox 126 Realty LLC has filed a Third Amended Disclosure Statement in support of its Plan of Reorganization that provides for the sale of the Debtor's real property located at 101 West 126th Street, a/k/a 321 Lenox Avenue, New York, New York. Effective Date Plan payments, including payment of administration claims, will be made from the proceeds of the sale of the Property. Under the Plan, the Mortgagee has agreed to cause $250,000 of the sale proceeds that would otherwise be paid towards satisfaction of its Secured Claim to be distributed to general unsecured creditors under the Plan, and has agreed to waive its right to any distribution as an unsecured creditor in order to enhance distributions to the other general unsecured creditors. This Disclosure Statement was approved by the bankruptcy court on Nov. 10, 2011. The Court has fixed Dec. 13, 2011, as the deadline for the submission of votes to accept or reject the Plan. The Debtor will seek approval of the Plan at a confirmation hearing on Dec. 20, 2011, at 2:00 p.m. Objections to confirmation of the Plan must be filed no later than Dec. 13, 2011. Griffon Heights LLC Class 2 Claim totals approximately $11,826,049 as of the Filing Date. Treatment: Payment of available cash up to Allowed Amount of Class 2 Claim, after payment of administration claims, Class 1 Claims, Class 3 Claims, and $250,000 to be allocated to Class 4 payments. General Unsecured Claims Claims in Class 4 total approximately $6,327,449. Claims include (a) Griffon Heights LLC $3,142,449 mortgage deficiency claim, (b) 31 Rockaway LLC $2,500,000 unpaid note, (c) insider claims of Calabrese Investors LLC in the amount of $600,000 and Lorenzo Deluca, Esq. in the amount of $45,000 and (d) various vendor claims in the amount of approximately $40,000. Treatment: Each Holder of a General Unsecured Claim will be paid its pro-rata share of a (a) $250,000 minimum distribution fund to be carved out from the Mortgagee's distribution as a Class 2 Claimant, and (b) its pro-rata share of litigation proceeds in connection with the prosecution of claims against third parties. Equity Interests in Class 5 will be paid such amount as may be available, if any, after payment of all senior classes of Claims under the Plan. The Debtor estimates no distribution to Equity Interests. A copy of the third amended disclosure statement is available for free at http://bankrupt.com/misc/lenox126.3rdamendedDS.pdf About Lenox 126 Realty Lenox 126 Realty LLC owns a parcel of real property located at 101 West 126th Street, a/k/a 321 Lenox Avenue, New York, New York. The Property is a 6 story apartment building with 32 residential units, 2 commercial units, and 2 cell towers. The Company filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 11-12275) on May 12, 2011. Mark Frankel, Esq., at Backenroth Frankel & Krinsky, LLP, in New York, represents the Debtor as counsel. In its schedules, Lenox 126 Realty disclosed $10,377,689 in assets and $14,718,905 in liabilities as of Chapter 11 filing. Judge Sean H. Lane presides over the case. No committee has been appointed to date in this case. MAIN AERIAL: Case Summary & 18 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Main Aerial Photography, Inc. 2432 West Peoria Avenue, Suite # 1345 Phoenix, AZ 85029 Bankruptcy Case No.: 11-33518 Chapter 11 Petition Date: December 8, 2011 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: Sarah Sharer Curley Debtor's Counsel: Charles M. Leftwich, Esq. LEFTWICH & ASSOCIATES, PLLC 3816 North 7th Street Phoenix, AZ 85014 Tel: (602) 266-8080 Fax: (602) 266-8097 E-mail: charles.leftwich@gmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 18 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb11-33518.pdf The petition was signed by James Douglas Main, owner. MAJESTIC CAPITAL: Plan Contemplates Orderly Wind-Down of Debtors ---------------------------------------------------------------- Majestic Capital, Ltd., et al., have submitted a proposed disclosure statement with respect to the Debtors' Joint Plan of Liquidation dated Nov. 18, 2011, that is designed to facilitate the orderly wind=down of the Debtors and their two non-debtor insurance company affiliates. The wind-down will be implemented by the establishment of 6 Liquidating Trusts (one for each of the six jointly administered Debtors), and the appointment of a Liquidating Trustee to, among other things, liquidate the Assets of each Liquidating Trust, resolve disputed claims, and distribute funds to Allowed Claim Holders. The Debtors believe that the wind-down may take several years to finalize, partly because of the numerous disputed and unliquidated claims asserted against the Debtors. Approximately 2,300 proofs of claim have been filed against the Debtors, asserting claims in an aggregate nominal amount of more than $1 billion. Many of these claims are duplicative or derivative, and appear to be substantially overstated, according to Majestic Capital. All Classes except Class 1 (Priority Claims) and Class 4 (Interests) are impaired and may vote on the Plan. Classes 1 and 4 are deemed to have accepted the Plan. Priority Claims in Class 1 will be paid in full from any Net Liquidating Trust Proceeds upon the later of the Effective Date or the date that the Claim becomes an Allowed Claim. Class 4 Interests will retain their Interests under the Plan, provided that the Class 4 Interests will not receive any distribution unless and until Allowed Class 3 Claims are paid in full. Class 2 consists of all Allowed Secured Claims against the Debtors. The Holders of Class 2 Claims will receive, at the sole option of the Liquidating Trustee, one of the following: (a) the return of the Collateral securing the Secured Claim; (b) Payment of the net proceeds from the liquidation of the collateral securing the Allowed Secured Claim, after deduction for costs of sale; (c) The reinstatement of the debt constituting the Secured Claim in accordance with Section 1124(2) of the Bankruptcy Code; (d) Treatment as is agreed upon in writing between the Liquidating Trustee and the Holder of the Secured Claim; (e) Treatment as determined by the Bankruptcy Court. Class 3 consists of all Allowed Non-priority Unsecured Claims against the Debtors. Each Holder of an Allowed Class 3 Claim will receive its Pro Rata share of the Net Liquidating Trust Proceeds of the Liquidating Trust of the respective Debtor against which it holds an Allowed Claim, after reduction for the Distribution Reserve. The initial distribution date will be made on the Distribution Date or such other date as the Liquidating Trustee will determine. Subsequent distributions will be made to the extent funds become available in accordance with the Plan and the applicable Liquidating Trust Agreement. A copy of the proposed disclosure statement, dated as of Nov. 18, 2011, is available for free at: http://bankrupt.com/misc/majesticcapital.dkt184.pdf About Majestic Capital Headquartered in Poughkeepsie, New York City, Majestic Capital, Ltd., formerly known as CRM Holdings Ltd., has two wholly owned subsidiaries, Majestic USA and Twin Bridges, a Bermuda-based reinsurance company. Twin Bridges and Majestic Insurance, a downstream subsidiary of Majestic USA are the two principal insurance companies. The Company filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 11-36225) on April 29, 2011. Affiliates also sought Chapter 11 protection (Bankr. S.D.N.Y. Case Nos. 11-36221 - 11-36234) on April 29, 2011. The Debtors retained Murphy & King, P.C. ("M&K") as their general bankruptcy counsel and Genova & Malin ("G&M") as their local counsel. The Debtors tapped Michelman & Robinson, LLP, as special counsel, and Day Seckler, LLP, as accountants and financial advisors. The Debtor disclosed $436,191,000 in assets and $421,757,000 in liabilities as of Dec. 31, 2010. Bruce F. Smith, Esq., and Steven C. Reingold, Esq., at Jager Smith P.C., represent the Official Committee of Unsecured Creditors. The Committee has also tapped J.H. Cohn LLP as its financial advisors. MARKWEST ENERGY: Fitch Says Stake Acquisition Won't Affect Rating ----------------------------------------------------------------- Fitch Ratings anticipates that MarkWest Energy Partners, L.P.'s (MarkWest) announced acquisition of the remaining stake in MarkWest Liberty Midstream & Resources, LLC (Liberty) will not impact the company's current ratings. Under the proposed transaction, MarkWest will acquire the remaining 49% stake in the project which is currently owned by The Energy & Minerals Group (EMG). MarkWest will pay EMG $1 billion in cash and issue 19.95 million class B shares for the transaction. The Liberty joint venture (JV) began in 2009 and provides midstream services in the Marcellus. Significant production growth has increased volumes for Liberty. Midstream infrastructure will continue to expand to meet growing demand. Transaction Financing: Fitch views the transaction financing as favorable from a credit perspective. In addition to paying $1 billion of cash, MarkWest is paying with class B units which will not receive distributions until converted to common units on a one-for-one basis. Beginning July 1, 2013, 20% of the class B units convert per year. Fitch believes the timing of the conversions will match with expected increases in distributable cash flows (DCF) which will benefit the coverage ratio. MarkWest is currently offering 8 million common units plus an overallotment of 1.2 million units. Net proceeds will bring additional cash to MarkWest's balance sheet. Fitch expects the company to use cash and available capacity on the bank facility for $1 billion cash component of the transaction financing. Fixed Fee Contracts: The 100% ownership of Liberty will increase MarkWest's fixed fee cash flows. At the end of the third quarter of 2011, 38% of contracts were fixed fee and in 2012 the company expects those contracts to increase to 45% to 50%. The increase of fixed fee contracts is favorably viewed from a credit perspective. New Joint Venture: MarkWest also plans to form a new JV with EMG to build operations in the Utica. Details of the planned JV are expected in January 2012 and Fitch anticipates that planned capital expenditures will increase from current forecasts as a result. Capital Expenditures: Excluding $230 million for the Langley acquisition, MarkWest forecasts capital expenditures in the range of $445 million to $470 million in spending in 2011. The revised 2012 forecast is $900 million to $1.3 billion, up from the $600 million to $700 million. The increase is largely attributed to 100% interest in Liberty. The Utica JV spending is not included in the revised 2012 estimate. Fitch anticipates debt and equity will be raised to help fund the projects. Leverage: At the end of the third quarter of 2011, debt to adjusted EBITDA was 3.6 times (x). Adjusted for the November 2011 $700 million debt offering which refinanced $330 million of maturing bonds, it was 4.5x on a pro forma basis. Fitch anticipates that leverage should fall below 4.0x by the end of 2012. MarkWest's financing strategy for the large capital expenditure program may ultimately result in leverage which differs from Fitch's expectations. Hedging: The company uses a proxy hedging strategy which is exposed to a periodic breakdown in the correlation between crude oil and natural gas liquids (NGL) prices. At the end of the third quarter 2011, 70% of its contracts were hedged for 2012, approximately 50% for 2013, and 20% for 2014. As of the end of the third quarter 2011, the hedging program reduced the latest 12 months (LTM) net operating margin exposed to commodity prices to 25% while 33% was from hedged positions and 42% of net operating margin was from fee based contracts. Fitch expects to see MarkWest continue to manage commodity exposure by rolling in new hedges. Fitch currently rates MarkWest as follows: -- Long-term Issuer Default Rating (IDR), 'BB'; -- Senior secured revolving credit facility, 'BB+'; -- Senior unsecured debt, 'BB' MERIT GROUP: Will Seek Approval of Liquidating Plan Tomorrow ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of South Carolina has approved the disclosure statement accompanying the Joint Amended Chapter 11 Plan of Liquidation of The Merit Group Inc., et al., and the Official Committee of Unsecured Creditors, dated Nov. 1, 2011. The Confirmation will be held on Dec. 16, 2011, at 9:30 a.m. Substantially all of the assets of the Debtors were sold to MG Distribution, LLC, in July 2011. The proceeds from the Sale and the proceeds from the prosecution of certain Causes of Action are the sources of funding for distributions under the Plan. The Regions Bank Settlement provides that $5.75 million would be made available to the Debtors' Estates to administer a plan and make distributions to creditors in accordance with the Bankruptcy Code. The Bankruptcy Court approved the Regions Bank Settlement as part of the Sale Order. Under the Plan, holders of Priority Tax Claims and Non-Tax Priority Claims will be paid in full. Holders of Secured Claims will be paid in full or receive the collateral securing their claim. Holders of Convenience Claims will receive 10% of the amount of such holder's Allowed Convenience Claim. Under the Plan, holders of Allowed Senior Unsecured Claims (Excluding Convenience Claims) will receive pro rata distributions of the proceeds from the Sale after payment of or reserve for Administrative Claims, Priority Tax Claims, Non-Tax Priority Claims, Secured Claims, Convenience Claims, and Plan Expenses. Pursuant to the Regions Bank Settlement, Regions Bank is not entitled to receive any further distribution after Closing as a holder of an Administrative Claim or Secured Claim but, instead, will share in the Plan distributions with other general, non- priority unsecured claims. Under the Plan and Regions Bank Settlement, Regions Bank will receive an initial distribution (on account of the Allowed Regions Deficiency Claim and the aggregate claims of the Subordinated Creditors-i.e., Stonehenge Opportunity Fund II, L.P., E. Fort Wolfe, Jr., Caleb C. Fort and Valspar Corporation) only after Distributions aggregating 10% of the principal amount of all Class 3 (Convenience Claims) and Class 4 (Senior Unsecured Claims) have been made. Thereafter, Regions Bank will receive a true-up of its Subordinated Distribution and then may participate in future Distributions to Claims in Class 4 on a Pro Rata basis. If Regions Bank is paid in full on account of its Regions Deficiency Claim then the Subordinated Creditors will be authorized to participate in future Distributions to Claims in Class 4 on a Pro Rata basis based upon the relative amount of all Senior Unsecured Claims in Class 4 and the Subordinated Claims at the time of each such Distribution and subsequent distributions to Subordinated Creditors will be made directly to each Subordinated Creditor. No distributions are anticipated to be made on account of Interests under the Plan. Classification Summary The Plan segregates the various claims against the Debtors and Interests into six (6) classes: Class 1: Secured Claims Unimpaired. Holders of Class 1 Claims are deemed to accept the Plan. Class 2: Non-Tax Priority Unimpaired. Holders of Class 2 Claims Claims are deemed to accept the Plan. Class 3: Convenience Claims Impaired. Holders of Class 3 Claims are entitled to vote to accept or reject the Plan. Class 4: Senior Unsecured Impaired. Holders of Class 4 Claims Claims are entitled to vote to accept or reject the Plan. Class 5: Regions Deficiency Impaired. Holders of Class 5 Claims Claim and are entitled to vote to accept or Subordinated reject the Plan. Claims Class 6: Interests Impaired. Holders of Class 6 Interests are entitled to vote to accept or reject the Plan. A copy of the disclosure statement accompanying the Joint Amended Chapter 11 Plan of Liquidation of the Debtors and the Official Committee of Unsecured Creditors, dated Nov. 1, 2011, is available for free at http://bankrupt.com/misc/meritgroup.dkt571.pdf About The Merit Group Based in Spartanburg, South Carolina, The Merit Group Inc., formerly Lancaster Distributing Company, serves as one of the leading paint sundries distributors in the United States. Its markets also include Mexico, the Caribbean Islands, Central America and South America. Merit Group filed for Chapter 11 bankruptcy protection (Bankr. D. S.C. Lead Case No. 11-03216) on May 17, 2011. Judge Helen E. Burris presides over the case. Michael M. Beal, Esq., Elizabeth (Lisa) J. Philp, Esq., Robin C. Stanton, Esq., and Michael H. Weaver, Esq., at McNair Law Firm PA, represent the Debtors. The Debtors selected Kurtzman Carson Consultants LLC as their claims agent; and Morgan Joseph TriArtisan LLC, investment banker, and Alvarez & Marsal North America, LLC, as financial advisors. Merit Group disclosed 7,004,048 in assets and $66,609,946 in liabilities as of the Chapter 11 filing. DIP Lender Regions Bank is represented by lawyers at Nexsen Pruet Jacobs & Pollard and Parker, Hudson, Rainer & Dobbs, LLP. The U.S. Trustee has named seven members to the Official Committee of Unsecured Creditors. The Committee is represented by Cole, Schotz, Meisel, Forman & Leonard, P.A. The Committee tapped McCarthy Law Firm LLC as co-counsel, J.H. Cohn LLP as its financial advisor. On July 29, 2011, the Debtors consummated the sale of substantially all of their assets to MG Distribution, LLC. The Merit Group changed its name to TMG Liquidation Company following the sale. MG Distribution LLC bought the business for $44 million. MIRAMAR REAL ESTATE: C. Agosto and FVP & Galindez OK'd as Auditors ------------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Puerto Rico authorized Miramar Real Estate Management Inc. to employ FPV & Galindez, CPAs, PSC, and its principal, Marcos A. Claudio Agosto, as its external auditors and restructuring advisors. The Debtor asserts that services are required in its reorganization process in the areas of Plan Development, Liquidation Analysis, Claims Administration, Feasibility, Negotiations, Investment, Financing and other matters. Miramar wishes to retain Mr. Agosto and FPV as its external auditors and insolvency and restructuring advisors, in the exercise of their powers and duties, on all financial matters pertaining to the reorganization in its Chapter 11 proceedings. FPV has served as external auditors for the Debtor and Debtor's stockholder since Dec. 31, 2005. Mr. Agosto assures the Court that his firm is a disinterested party within the meaning of Sections 101(3) and 327 of the Bankruptcy Code. San Juan, Puerto Rico-based Miramar Real Estate Management Inc. filed for Chapter 11 bankruptcy protection (Bankr. D. P.R. Case No. 11-01786) on March 2, 2011. Fausto D. Godreau Zayas, Esq., at Latimer, Biaggi, Rachid & Godreau, LLP, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at US$100 million to US$500 million. MULHEARN REALTORS: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Mulhearn Realtors, Inc. dba Pridential California Realty 18000 Studerbaker Road, Suite 205 Cerritos, CA 90703 Bankruptcy Case No.: 11-59917 Chapter 11 Petition Date: December 7, 2011 Court: United States Bankruptcy Court Central District of California (Los Angeles) Judge: Barry Russell Debtor's Counsel: Mark R. Campbell, Esq. MARK CAMPBELL LAW 300 S Harbor Blvd Ste 700 Anaheim, CA 92805 Tel: (714) 224-0270 Fax: (714) 224-0275 E-mail: mcampbell@markcampbelllaw.com Estimated Assets: $50,001 to $100,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb11-59917.pdf The petition was signed by Bruce T. Mulhearn, president. Affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Bruce T. Mulhearn 11-59911 12/07/11 NATIONAL ALARM: Case Summary & 4 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: National Alarm Funding Corporation 915 W. Fotthill Blvd. St. 505 Claremont, Ca 91711 Bankruptcy Case No.: 11-60037 Chapter 11 Petition Date: December 8, 2011 Court: United States Bankruptcy Court Central District of California (Los Angeles) Judge: Ellen Carroll Debtor's Counsel: Gino Pietro, Esq. PIETRO & ASSOCIATES 1605 E. 4th Sy #250 Santa Ana, Ca 92701 Tel: (714) 542-5004 Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's four largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb11-60037.pdf The petition was signed by Leon Draper, vice president. NBOR CORPORATION: Involuntary Chapter 11 Case Summary ----------------------------------------------------- Alleged Debtor: NBOR Corporation aka Interact Corporation c/o Denny Jaeger 6120 Valley View Road Oakland, CA 94611 Case Number: 11-72855 Involuntary Chapter 11 Petition Date: December 9, 2011 Court: Northern District of California (Oakland) Judge: William J. Lafferty Petitioner's Counsel: Randy Michelson, Esq. MICHELSON LAW GROUP 100 Pine St, #2450 San Francisco, CA 94111 Tel: (415) 512-8600 Fax: (415) 512-8601 E-mail:randy.michelson@michelsonlawgroup.com NBOR Corporation's petitioner: Petitioner Nature of Claim Claim Amount ---------- --------------- ------------ Mako Strategies, Inc. consulting services $200,000 P.O. Box 222980 Carmel, CA 93922 NORTEL NETWORKS: Gets CCAA Extension Until April 13 --------------------------------------------------- Nortel Networks Corporation said its principal operating subsidiary Nortel Networks Limited and its other Canadian subsidiaries that filed for creditor protection under the Companies' Creditors Arrangement Act (CCAA) have obtained an order from the Ontario Superior Court of Justice (Canadian Court) further extending, to April 13, 2012, the stay of proceedings that was previously granted by the Canadian Court. The purpose of the stay of proceedings is to provide stability to the Nortel companies to continue with the wind down of operations and other significant work toward the development of a plan of arrangement under CCAA and conclusion of the creditor protection proceedings. The materials filed in the CCAA proceedings are available on the Restructuring Document Centre of Ernst & Young Inc. (the Monitor) at http://documentcentre.eycan.com/Pages/Main.aspx?SID=89&Redirect=1 or by contacting the Monitor directly at 1-866-942-7177. Management Changes In light of the milestones met to date and the focus of the remaining work, John Doolittle, Senior Vice-President Corporate Services & Chief Financial Officer, and the Board of Directors, have jointly determined that it is an appropriate point for Mr Doolittle to step down from his position and to depart from the Company on Dec. 16, 2011. Effective Dec. 17, 2011, Allan Bifield will assume the role of Senior Vice-President Corporate Services & Chief Financial Officer of the Company and NNL. Mr Bifield has been the Chief Financial Officer and Senior Vice-President for the Nortel Business Services organization since 2010, and previously held various positions in the Finance organization of the Company for over 25 years. About Nortel Networks Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/-- was once North America's largest communications equipment provider. It has sold most of the businesses while in bankruptcy. Nortel Networks Corp., Nortel Networks Inc., and other affiliated corporations in Canada sought insolvency protection under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice (Commercial List). Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. The Monitor sought recognition of the CCAA Proceedings in the U.S. by filing a bankruptcy petition under Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 09-10164). Mary Caloway,Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's counsel. Nortel Networks Inc. and 14 affiliates filed separate Chapter 11 petitions (Bankr. D. Del. Case No. 09-10138) on Jan. 14, 2009. Judge Kevin Gross presides over the case. James L. Bromley, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, and Christopher M. Samis, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, represent the Official Committee of Unsecured Creditors. Certain of Nortel's European subsidiaries also made consequential filings for creditor protection. On May 28, 2009, at the request of the Administrators, the Commercial Court of Versailles, France ordered the commencement of secondary proceedings in respect of Nortel Networks S.A. On June 8, 2009, Nortel Networks UK Limited filed petitions in this Court for recognition of the English Proceedings as foreign main proceedings under chapter 15 of the Bankruptcy Code. Nortel Networks divested off key assets while in Chapter 11. Nortel has raised $3.2 billion by selling its operations as it prepares to wind up a two-year liquidation due to insolvency. In June 2011, Nortel added US$4.5 billion to its cash pile after agreeing to sell its remaining patent portfolio to Rockstar Bidco LP, a consortium consisting of Apple Inc., EMC Corporation, Telefonaktiebolaget LM Ericsson, Microsoft Corp., Research In Motion Limited, and Sony Corporation. The consortium defeated a $900 million stalking horse bid by Google Inc. at an auction. The deal closed in July. Nortel Networks has filed a proposed plan of liquidation in the U.S. Bankruptcy Court. The Plan generally provides for full payment on secured claims with other distributions going in accordance with the priorities in bankruptcy law. NORTON PROPERTY: Case Summary & 4 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Norton Property Management Services LLC 255 South Leland Norton Way San Bernardino, CA 92408 Bankruptcy Case No.: 11-47001 Chapter 11 Petition Date: December 7, 2011 Court: United States Bankruptcy Court Central District Of California (Riverside) Judge: Scott C. Clarkson Debtor's Counsel: C John M Melissinos, Esq. RUTTER HOBBS & DAVIDOFF INCORPORATED 1901 Avenue of the Stars Ste 1700 Los Angeles, Ca 90067 Tel: (310) 286-1700 Fax: (310) 286-1728 E-mail: jmelissinos@rutterhobbs.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $500,001 to $1,000,000 A list of the Company's four largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/cacb11-47001.pdf The petition was signed by T. Milford Harrison, manager. ODYSSEY DP: Case Summary & 4 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Odyssey DP III, LLC dba Secured Storage 500 S. Florida Ave., Suite 700 Lakeland, FL 33801 Bankruptcy Case No.: 11-22314 Chapter 11 Petition Date: December 6, 2011 Court: United States Bankruptcy Court Middle District of Florida (Tampa) Judge: Catherine Peek McEwen Debtor's Counsel: Edward J. Peterson, III, Esq. STICHTER, RIEDEL, BLAIN & PROSSER, PA 110 East Madison Street, Suite 200 Tampa, FL 33602 Tel: (813) 229-0144 Fax: (813) 229-1811 E-mail: epeterson@srbp.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the list of four largest unsecured creditors is available for free at http://bankrupt.com/misc/flmb11-22314.pdf The petition was signed by Benjamin D.E. Falk, CFO OC DIP, LLC, manager. Debtor-affiliates that previously filed separate Chapter 11 petitions include Century/AG-Avondale, LLC, Odyssey Properties III, LLC, Century (III) DP III, LLC, Odyssey (III) DP III, LLC, Odyssey (VI) Commercial DP I, LLC, and Odyssey (III) DP IX, LLC. OXLEY DEVELOPMENT: U.S. Trustee Asks Court to Dismiss Case ---------------------------------------------------------- Donald F. Walton, United States Trustee for Region 21, asks the U.S. Bankruptcy Court for the Southern District of Georgia to dismiss the Chapter 11 case of Oxley Development Company, Inc., or in the alternative convert the case to one under Chapter 7. The U.S. Trustee stated that the Debtor has not provided certain information and documents requested by the U.S. Trustee, did not attend the Initial Debtor Interview scheduled by the U.S. Trustee, and did not attend the section 341 meeting of creditors scheduled by the Court, which circumstances constitute cause for conversion or dismissal pursuant to 11 U.S.C. Sections 1112(b)(4)(C) and (H). Oxley Development Company, LLC, based in Kingsland, Georgia, filed for Chapter 11 bankruptcy (Bankr. S.D. Ga. Case No. 11-21338) on Oct. 31, 2011. In its petition, the Debtor scheduled assets of $125,700,000 and debts of $61,289,500. The petition was signed by Carl M. Drury, III, managing member. William S. Orange, III, Attorney at Law, is the Debtor's Chapter 11 counsel. OXLEY DEVELOPMENT: Court OKs William Orange III as Bankr. Counsel ----------------------------------------------------------------- Oxley Development Company LLC obtained permission from the Bankruptcy Court to employ William S. Orange, III, Attorney at Law, as its Chapter 11 counsel. The Debtor has agreed to pay Mr. Orange at a rate of $300 per hour and has deposited in his trust account $8,961 as retainer. Oxley Development Company, LLC, based in Kingsland, Georgia, filed for Chapter 11 bankruptcy (Bankr. S.D. Ga. Case No. 11-21338) on Oct. 31, 2011. In its petition, the Debtor scheduled assets of $125,700,000 and debts of $61,289,500. The petition was signed by Carl M. Drury, III, managing member. William S. Orange, III, Attorney at Law, is the Debtor's Chapter 11 counsel. PARADISE HOSPITALITY: Files Schedules of Assets and Liabilities --------------------------------------------------------------- Paradise Hospitality, Inc., filed with the U.S. Bankruptcy Court for the Central District of California its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $14,000,000 B. Personal Property $1,628,687 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $16,511,662 E. Creditors Holding Unsecured Priority Claims $449,714 F. Creditors Holding Unsecured Non-priority Claims $4,468,957 ----------- ----------- TOTAL $15,628,687 $21,430,333 About Paradise Hospitality Based in Fullerton, California, Paradise Hospitality, Inc., owns a hotel located in Toledo, Ohio and a retail shopping center in El Dorado, Arkansas. The Debtor currently manages and operates the Hotel. Haydn Cutler company currently manages the Retail Center. The Company filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-24847) on Oct. 26, 2011, about three weeks after it lost the right to use the Crowne Plaza for its hotel. For now, the hotel has been renamed Plaza Hotel Downtown Toledo. Judge Erithe A. Smith presides over the case. Sam S. Oh, Esq. -- sam.oh@limruger.com -- at Lim, Ruger & Kim, LLP, serves as the Debtor's counsel. In its petition, the Debtor estimated assts and debts of $10 million to $50 million. The petition was signed by the Debtor's president, Dae In Kim, a Korean businessman who lives in southern California. PENINSULA HOSPITAL: U.S. Trustee Wants Ch. 11 Trustee to Take Over ------------------------------------------------------------------ Tracy Hope Davis, the U.S. Trustee for Region 2, asks the U.S. Bankruptcy Court for the Eastern District of New York for an order directing the appointment of: i) a Chapter 11 Trustee in the bankruptcy cases of Peninsula Hospital Center and Peninsula General Nursing Home Corp., or, in the alternative, ii) an examiner in the cases. According to the U.S. Trustee, the appointment of an independent fiduciary is in the interests of creditors and other parties in interest. The U.S. Trustee has questioned the possible conflicts of the Debtors' management and the lack of a viable reorganization strategy. Based upon recent disclosures, it is apparent that the Debtors lack independent leadership, which is preventing the Debtors from making any meaningful progress towards reorganization. In the alternative, the U.S. Trustee seeks the appointment of an examiner pursuant to Section 1104(c)(1) to investigate: i) the Debtors' prepetition relationship and transactions with the Revival entities; 2) whether the Debtors' proposed postpetition transaction with Revival and Revival Funding is in the best interests of creditors and the estate; and 3) whether the Debtors' current management and members of the boards of directors can properly manage the Debtors and exercise their respective duties under the Bankruptcy Code and applicable non-bankruptcy law. About Peninsula Hospital Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an involuntary Chapter 11 bankruptcy protection against Peninsula Hospital Center -- http://www.peninsulahospital.org/-- (Bankr. E.D.N.Y. Case No. 11-47056) on Aug. 16, 2011. Judge Elizabeth S. Stong presides over the case. Marilyn Cowhey Macron, Esq., Macron & Cowhey, represents the petitioners. Peninsula Hospital Center and Peninsula General Nursing Home Corp., employed Alvarez & Marsal Healthcare Industry Group, LLC, as financial advisors. The Hospital employed Abrams Fensterman et al. as their attorneys. Nixon Peabody serves as their special counsel; GCG, Inc., serves as claims and noticing agent. Judge Stong appointed Daniel T. McMurray at Focus Management Group as patient care ombudsman. Neubert, Pepe & Monteith P.C. serves as PCO's counsel. Tracy Hope Davis, the U.S. Trustee for Region 2, appointed five unsecured creditors to serve on the Official Committee of Unsecured Creditors of Peninsula Hospital Center. CBIZ Accounting, Tax & Advisory of New York, LLC and CBIZ, Inc., serves as financial advisors for the Committee. PLATINUM OIL: Court Won't Reconsider Ruling on Jicarilla Leases --------------------------------------------------------------- Bankruptcy Judge Robert H. Jacobvitz declined a request by Platinum Oil Properties LLC to revisit its Memorandum Opinion and Order Denying Cross-Motions for Summary Judgment pursuant to Rule 9023 of the Federal Rules of Bankruptcy Procedure, which incorporates Rule 59 of the Federal Rules of Civil Procedure. The Memorandum Opinion and Order determined, among other things, that the confirmed plan of reorganization in the Golden Oil Company, Inc. bankruptcy case did not provide for a transfer of operating rights and working interests to Platinum. Platinum primarily argues that the Court erred by excluding evidence under the parol evidence rule that would establish that Platinum -- not the McKay- Lotspeich-Group -- was the intended transferee of the Operating Rights and Working Interests under the Golden Oil Plan. Platinum also asserts that the Court erred as a matter of law in determining that the Jicarilla Apache Nation can modify provisions of the Jicarilla Leases governing assignment and in concluding that the Department of the Interior did not approve the transfer of Operating Rights and Working Interests to Platinum. The Court disagrees with Platinum's arguments. A copy of the Court's Dec. 12, 2011 Order is available at http://is.gd/gMuXGlfrom Leagle.com. Roger Jones, Esq. Austin L. McMullen, Esq. BRADLEY ARANT BOULT CUMMINGS LLP Roundabout Plaza 1600 Division Street, Suite 700 Nashville, TN 37203 Tel: 615-252-2307 Fax: 615-252-6307 E-mail: rjones@babc.com amcmullen@babc.com Robert J. Labate, Esq. -- robert.labate@hklaw.com -- at Holland & Knight LLP, represents Jicarilla Apache Nation. Golden Oil Company filed a Chapter 11 petition (Bankr. S.D. Tex. Case No. 03-36974) on Aug. 12, 2003. Platinum Oil Properties, LLC, filed for Chapter 11 bankruptcy (Bankr. D. N.M. Case No. 09-10832) on March 2, 2009. Platinum asserts lessee or other interests in two oil and gas leases: Oil and Gas Mining Leases-Tribal Indian Lands, under which The Jicarilla Apache Tribe of Indians. Platinum's interests in or pertaining to the Leases, if any, comprise substantially all of the assets of the estate. The Nation challenged the inclusion of the operating rights and working interests as part of Platinum's estate. Platinum asserted that the lease rights and interests had been assigned, pursuant to Golden Oil's confirmed bankruptcy plan, to a group that later formed Platinum Oil. PLATINUM PROPERTIES: Wants Plan Filing Period Extended to April 19 ------------------------------------------------------------------ Platinum Properties, LLC, and PPV, LLC, ask the U.S. Bankruptcy Court for the Southern District of Indiana to extend for an additional 120 days their exclusive periods to file and solicit acceptances for their proposed plan of reorganization, up to and including April 19, 2012, and June 20, 2012, respectively. Absent this second extension, the Debtors' exclusive filing period and exclusive solicitation period will expire on Dec. 21, 2011, and Feb. 21, 2012, respectively. The Debtors tell the Court that they require additional time to develop and evaluate expressions of interest in additional sales transactions or other settlements with their creditors. Further, the Debtors are currently in negotiations with certain creditors to engage in one or more transactions that could result in a mutually agreeable resolution for one or both of the Chapter 11 Cases. About Platinum Properties and PPV LLC Indianapolis, Indiana-based Platinum Properties, LLC, is a residential real estate developer. Platinum acquires land, designs the projects, obtains zoning and other approvals, and constructs roads, drainage, utilities, and other infrastructure of residential subdivisions. Platinum then sells the finished, platted lots. Platinum also has an ownership interest in several special purpose entities that in turn own, operate and manage individual projects. PPV LLC is a joint venture between Platinum and a non-debtor entity, Pittman Partners, Inc., each of whom hold an equity interest in PPV. PPV owned four projects directly and owns 100% of the membership interest of Sweet Charity Estates, LLC. Platinum Properties and PPV LLC filed for Chapter 11 protection (Bankr. S.D. Ind. Case Nos. 11-05140 and 11-05141) on April 25, 2011. Lawyers at Baker & Daniels LLP, in Indianapolis, Indiana, serve as the Debtors' bankruptcy counsel. Platinum Properties disclosed $14,624,722 in assets and $181,990,960 in liabilities as of the Chapter 11 filing. The U.S Trustee has not yet appointed a creditors committee in the Debtor's case. The U.S. Trustee reserves the right to appoint such a committee should interest developed among the creditors. PMI GROUP: U.S. Trustee Unable to Form Committee ------------------------------------------------ The United States Trustee said that an official committee under 11 U.S.C. Sec. 1102 has not been appointed in the bankruptcy case of The PMI Group, Inc., because an insufficient number of persons holding unsecured claims against the Debtor have expressed interest in serving on a committee. The U.S. Trustee reserves the right to appoint such a committee should interest developed among the creditors. About PMI Group Del.-based The PMI Group, Inc., is an insurance holding company whose stock had, until Oct. 21, 2011, been publicly-traded on the New York Stock Exchange. Through its principal regulated subsidiary, PMI Mortgage Insurance Co., and its affiliated companies, the Debtor provides residential mortgage insurance in the United States. The PMI Group filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 11-13730) on Nov. 23, 2011. The Debtor had total assets of $225 million and total debts of $736 million. Stephen Smith signed the petition as chairman, chief executive officer, president and chief operating officer. The Debtor said in the filing that it does not have the financial resources to pay the outstanding principal amount of the 4.50% Convertible Senior Notes, 6.000% Senior Notes and the 6.625% Senior Notes if those amounts were to become due and payable. PMI GROUP: Auction Determines Credit-Default Swaps Payouts ---------------------------------------------------------- Dow Jones' Daily Bankruptcy Review reports that the second round of a two-part auction to settle credit-default-swap protection tied to residential-mortgage insurer PMI Group Inc. generated a final price for the company's debt of 16.5 cents on the dollar Tuesday, meaning CDS buyers will receive 83.5 cents back for every dollar of protection they purchased. About PMI Group Walnut Creek, Calif.-based The PMI Group, Inc., through its subsidiary, PMI Mortgage Insurance Co. and its affiliated companies, provides residential mortgage insurance in the United States. PMI posted a consolidated net loss of $134.8 million and $261.6 million for the second quarter and first six months of 2011, respectively, compared to net losses of $150.6 million and $307.5 million for the corresponding periods in 2010. In August 2011, Moody's Investors Service lowered the insurance financial strength rating of PMI Mortgage Insurance Co. to Caa1, from B3 following Arizona State Insurance Department's order placing the company under regulatory supervision. PMI's rating is under review for possible downgrade. Moody's noted that the Arizona Department of Insurance's order placed PMI and PMI Insurance Co. (unrated) under regulatory supervision and required that they stop writing new commitments immediately. PRM SMITH: Seeks to Hire Benjamin Currence as Litigation Counsel ---------------------------------------------------------------- PRM Smith Bay, LLC, seeks permission from the U.S. Bankruptcy Court for the Northern District of Texas to employ Benjamin A. Currence, Esq., as its litigation counsel. On Feb. 2, 2010, FirstBank Puerto Rico filed a foreclosure action in the United States District Court of the Virgin Islands, Division of St. Thomas and St. John, Case No. 10-00015. On July 27, 2011, the Debtor's Plan of Reorganization was withdrawn by the Debtor to avoid the costs associated with a protracted confirmation fight with FirstBank concerning its objections to the Debtor's proposed Plan. On Aug. 11, 2011, FirstBank filed a motion in the Foreclosure Action to reopen the docket. At the time of FirstBank's motion, the Debtor was not represented by counsel in the Foreclosure Action. The Debtor seeks to engage Mr. Currence to represent it in the Foreclosure Action, including filing a notice of appearance, answer and counterclaims, and any other filings necessary to defend the Debtor in the Foreclosure Action. Mr. Currence seeks to receive an initial retainer of $2,500 at the inception of the engagement. The retainer and any additional fees and expenses will be paid by a non-debtor affiliate of the Debtor, PR Global Hotel Ventures, LLC. To the best of the Debtor's knowledge, Mr. Currence does not hold an interest adverse to the Debtor or to the Debtor's estate with respect to matters upon which he is to be engaged. About PRM Smith Bay Chicago, Illinois-based PRM Smith Bay, LLC, aka PRM Smith Bay, LLP, was formed in May 2004 for the purpose of holding an undeveloped 7.5 acre parcel of land on St. Thomas in the United States Virgin Islands known as Cabes Point. PRM Realty Group, LLC, is the 100% owner and manager of the Debtor. The Debtor filed for Chapter 11 bankruptcy protection (Bankr. N.D. Tex. Case No. 11-30444) on Jan. 20, 2011. Gerrit M. Pronske, Esq., Rakhee V. Patel, Esq., and Melanie P. Goolsby, Esq., at Pronske & Patel, P.C., in Dallas, serve as the Debtor's bankruptcy counsel. In its schedules, the Debtor disclosed $13,031,162 in assets and $6,781,074 in liabilities as of the petition date. Affiliates Bon Secour Partners, LLC (Bankr. N.D. Tex. Case No. 09-37580), PRS II, LLC (Bankr. N.D. Tex. Case No. 09-31436), PRM Realty Group, LLC (Bankr. N.D. Tex. Case No. 10-30241), PMP II, LLC (Bankr. N.D. Tex. Case No. 10-30252), Maluhia Development Group, LLC (Bankr. N.D. Tex. Case No. 10-30475), Maluhia One, LLC (Bankr. N.D. Tex. Case No. 10-30987), Maluhia Eight, LLC (Bankr. N.D. Tex. Case No. 10-30986), Maluhia Nine, LLC (Bankr. N.D. Tex. Case No. 10-30988), Long Bay Partners, LLC (Bankr. N.D. Tex. Case No. 10-35124), PRM Development, LLC (Bankr. N.D. Tex. Case No. 10- 35547), Little Hans Lollik Holdings, LLP (Bankr. N.D. Tex. Case No. 10-36159), and Hans Lollick Land Company, Limited (Bankr. N.D. Tex. Case No. 10-36161) filed separate Chapter 11 petitions. PT ARPENI PRATAMA: Seeks Creditor Projection in the U.S. -------------------------------------------------------- PT Arpeni Pratama Ocean Line Tbk filed for bankruptcy protection in the U.S. in an effort to block a group of dissident note holders from torpedoing its debt restructuring in its home country. Fida Unidjaja, as foreign representative, estimated $500 million to $1 billion in assets and liabilities in his bankruptcy petition under Chapter 15 (Bankr. S.D.N.Y. Case No. 11-15691) for PT Arpeni. PT Arpeni Pratama Ocean Line Tbk -- http://www.apol.co.id/-- is Indonesia's leading diversified shipping company, owning and operating the largest fleet of Indonesian flagged dry bulk vessels. Arpeni operates a fleet of general-purpose specialist, such as their tweendecker MV Alas, which is designed to transport dry cargoes such as plywood and agricultural products. As of June 30, 2011, Arpeni operated 77 wholly-owned vessels and two vessels under long term charters. PT Arpeni is seeking U.S. court recognition of its proceeding before the Commercial Court at the Central Jakarta District Court as a foreign main proceeding. PT Bank Central Asia Tbk., an unsecured lender, commenced the Jakarta proceeding on Aug. 5, 2011, which Arpeni voluntarily joined. On Aug. 24, 2011, the Jakarta Court issued a temporary suspension of debt payment decision, effectively staying actions on claims against the Foreign Debtor for an initial period of 45 days. Throughout the proceeding, Arpeni remained in possession of and continued its business while it restructured its debt. Unidjaja explained, "The current global economic downturn caused a substantial decrease in freight rates and transportation volume, compounded by an increase in credit risk and defaults on trade receivables. Arpeni experienced a significant deterioration in its international and domestic market as conditions in the maritime shipping industry in general deteriorated significantly commencing in the fourth quarter of 2008 and continuing through 2011. The difficult market conditions in the maritime shipping industry have had a material adverse effect on Arpeni's business and financial performance." On Dec. 9, 2009, Arpeni announced an informal payment moratorium with certain of its creditors pursuant to which Arpeni ceased making payments of interest or principal. The trustee under the indenture with respect to the U.S. Notes on Sept. 6, 2011, had accelerated the U.S. Notes and demanded performance by the Debtor of its obligations as guarantor under the U.S. Notes Indenture. In the Jakarta proceeding, the Debtor sought and obtained approval of a composition plan from the requisite percentage of its creditors participating in the plan pursuant to Indonesian bankruptcy law. In particular, the Composition Plan was approved by approximately 95% of the Debtor's secured creditors and 80% of the Debtor's unsecured creditors, in each case present and voting at a hearing before the Indonesian Court on Nov. 1, 2011 and holding claims that had been verified for inclusion in the Foreign Proceeding. As provided in the Composition Plan as embodied in the Settlement Agreement, on Nov. 18, 2011, Arpeni launched an exchange offer and tender offer. The Debtor filed a Chapter 15 petition to stop the commencement of actions within the United States under the U.S. Notes Indenture or disrupt the Foreign Debtor's restructuring efforts by seeking to circumvent the Composition Plan and Foreign Proceeding, in derogation of the rights of the Foreign Debtor's other creditors. PURE BEAUTY: Creditors Have Until Jan. 13 to File Proofs of Claim ----------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware has established Jan. 13, 2012, at 4:00 p.m. (prevailing Eastern Time), as the deadline for any person or entity to file proofs of claim against Pure Beauty Salons & Boutiques, Inc., et al. The Court also set April 2, 2012, at 4:00 p.m., as the Governmental Bar Date. All proofs of claim must be submitted in person, by courier service, by hand delivery, or by mail, at these addresses: If by first-class mail: Pure Beauty Salons & Boutiques, Inc. Claims Processing Center c/o Epiq Bankruptcy Solutions, LLC FDR Station P.O. Box 5283 New York, NY 10150-5283 If by hand delivery or overnight mail: Pure Beauty Salons & Boutiques, Inc. Claims Processing Center c/o Epiq Bankruptcy Solutions, LLC 757 Third Avenue, 3rd Floor New York, NY 10017 About Pure Beauty Pure Beauty Salons & Boutiques, Inc., and its affiliated company BeautyFirst Franchise Corp., operate a chain of hair care and beauty supply stores under the trade names Trade Secret, Beauty Express, BeautyFirst, PureBeauty, and Winston's Barber Shop. Pure Beauty Salons & Boutiques, Inc. operates and/or owns 436 stores and BeautyFirst Franchise Corp. has agreements with 13 franchisees that operate 22 BeautyFirst and 7 Trade Secret Stores. Pure Beauty Salons & Boutiques, Inc., is back in Chapter 11 after having been sold out of Chapter 11 last year. The prior case was dismissed after the sale was completed. The previous case was In re Trade Secret Inc., 10-12153, in the same court. Pure Beauty Salons filed for bankruptcy (Bankr. D. Del. Case No. 11-13159) on Oct. 4, 2011. Affiliate BeautyFirst Franchise Corp. filed a separate petition (Bankr. D. Del. Case No. 11-13160). Joseph M. Barry, Esq., Kenneth J. Enos, Esq., and Ryan M. Bartley, Esq., at at Young Conaway Stargatt & Taylor, LLP, serve as the Debtors' counsel. The Debtors' investment banker is SSG Capital Advisors' J. Scott Victor -- jsvictor@ssgca.com The Debtors' notice, claims solicitation, and balloting agent is Epiq Bankruptcy Solutions. In its schedules, Pure Beauty Salons disclosed $36,444,963 in assets and $55,215,590 in liabilities as of the Petition Date. In its schedules, BeautyFirst Franchise disclosed $1,716,985 in assets and $36,761,086 in liabilities as of the Petition Date. The Debtors owe $15 million to vendors and landlords. The petition was signed by Brian Luborsky, chief executive officer. Attorneys at Pachulski Stang Ziehl & Jones LLP represent the Official Committee of Unsecured Creditors. Secured lender Regis Corp. is represented in the case by Michael L. Meyer, Esq., at Ravich Meyer Kirkman McGrath Nauman & Tansey P.A., and Kathleen M. Miller, Esq., at Smith Katzenstein & Furlow LLP. QUALTEC INC: Court Approves Crowe Horwath as Accountants -------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized Qualtec, Inc., et al., to employ Crowe Horwath LLP as their accountants and tax advisors nunc pro tunc to Nov. 3, 2011. The Crowe Horwath will, among other things: (a) compile annual and month-end balance sheets and related statements of income for year ending Dec. 31, 2011, and issue accountant's reports thereon in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants; (b) provide audit services for the Debtors in 2011 and for year then ending; (c) review the Debtors' unaudited financial information; and (d) provide general tax consulting services. Bradford R. Dooley & Associates' involvement in the services will be limited to the services it has historically provided to the Debtors through Nov. 3, 2011, and any additional services necessary to effectuate the transition to Crowe Horwath. Once the transition is completed, the Debtors will no longer retain Dooley' services and Crowe & Horwath will solely provide accounting and tax services going forward. The principal professionals at Crowe Horwath designated to represent the Debtors and their current hourly rates are: John Grivetti, Partner $400 Dennis Kalten, Senior Manager $310 Eric Hanson, Senior Manager $285 The Debtors will reimburse Crowe Horwath for all other out-of- pocket expenses it incurred in connection with its engagement. The Debtors will pay to Crowe Horwath a $30,000 postpetition retainer to be held in trust and applied to fees and expenses as approved by the Court. To the best of the Debtors' knowledge, Crowe Horwath is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About QualTeq Inc. South Plainfield, New Jersey-based QualTeq, Inc., engages in the design, manufacture, and personalization of plastic cards in the United States. The company manufactures magnetic, contact, and dual interface smart cards. Qualteq Inc. and 17 affiliated companies filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12572) on Aug. 14, 2011. Eric Michael Sutty, Esq., and Jeffrey M. Schlerf, Esq., at Fox Rothschild LLP, serve as local counsel to the Debtors. K&L Gates LLP is the general bankruptcy counsel. Scouler & Company is the restructuring advisors. QualTeq estimated assets of up to $50 million and debts of up to $100 million as of the Chapter 11 filing. Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed four unsecured creditors to serve on the Official Committee of Unsecured Creditors. QUALTEC INC: Can Hire FocalPoint Securities as Investment Banker ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized Qualtec, Inc., et al., to employ FocalPoint Securities, LLC, as their investment banker in connection with raising financing in one or more transactions. Pursuant to the Engagement Letter, FocalPoint will: (a) familiarize itself with the business, operations, assets, financial condition, and prospects of the Debtors; (b) evaluate the Debtors' debt capacity in light of their projected cash flows and assist in the determination of an appropriate capital structure for the company; (c) advise the Debtors in analyzing their strategic alternatives and structuring and effecting financial aspects of any Transaction; (d) design the appropriate process to effect and initiate any Transaction including an analysis of the various alternatives and, if appropriate, the lenders and investors to be contacted for the Transaction; (e) prepare any appropriate financial models, financial analysis, or offering materials necessary to initiate and effect any Transaction including those to be provided to Investors in conjunction with any Transaction; (f) as appropriate, solicit interest from Investors in any Transaction; (g) assist the Debtors and their other professionals in reviewing and evaluating the terms of any proposed Transaction and, if directed, negotiate the terms thereof; (h) advise the Debtors on the risks and benefits of considering a Transaction with respect to the Company's intermediate and long-term business prospects; (i) assist or participate in negotiations with parties-in- interest, including any current or prospective creditors of, holders of equity in, or claimants against the Debtors or their respective representative in connection with a Transaction; (j) advise the Debtors with respect to, and attend, meetings of Debtors' Board of Directors and their committees, creditor groups, official constituencies and other interested parties, as necessary; and (k) as appropriate, provide relevant testimony with respect to any Transaction. FocalPoint will be compensated for its services via a monthly advisory fee of $50,000, as well as financing fee which will be paid to FocalPoint upon the closing of any financing and which will be calculated as follows: * 2% of the gross amount of funded or committed indebtedness that (x) is secured by a first lien, (y) is secured by a second or more junior lien, (z) is unsecured or subordinated; and * 5% of the gross amount of any funded or committed preferred common equity, convertible or otherwise equity-linked securities or obligations. The Debtors will reimburse FocalPoint for out-of-pocket expenses including, but not limited to, postage and shipping charges, telephone, facsimiles, printing and travel. To the best of the Debtors' knowledge, FocalPoint is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About QualTeq Inc. South Plainfield, New Jersey-based QualTeq, Inc., engages in the design, manufacture, and personalization of plastic cards in the United States. The company manufactures magnetic, contact, and dual interface smart cards. Qualteq Inc. and 17 affiliated companies filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12572) on Aug. 14, 2011. Eric Michael Sutty, Esq., and Jeffrey M. Schlerf, Esq., at Fox Rothschild LLP, serve as local counsel to the Debtors. K&L Gates LLP is the general bankruptcy counsel. Scouler & Company is the restructuring advisors. QualTeq estimated assets of up to $50 million and debts of up to $100 million as of the Chapter 11 filing. Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed four unsecured creditors to serve on the Official Committee of Unsecured Creditors. QUINCY MEDICAL: Ombudsman Wants PCO Responsibilities Discharged --------------------------------------------------------------- Suzanne Koenig, the patient care ombudsman appointed in the Chapter 11 cases of Quincy Medical Center, Inc., QMC ED Physicians, Inc., and Quincy Physician Corporation, asks the U.S. Bankruptcy Court for the District of Massachusetts to discharge her of her responsibilities as patient care ombudsman. The PCO relates that in accordance with the order outlining her responsibilities, the ombudsman was to perform her functions only until the assets of the Debtor were sold. That sale occurred on Sept. 30, 2011 and, out of an abundance of caution, the ombudsman seeks to make clear that she has further obligations under her appointment. The PCO continues that on Nov. 22, 2011, the Court entered an order confirming the Debtor's Joint Plan of Liquidation. As part of the confirmed Plan, the Debtors, the Creditors' Committee, the Liquidating Trustee and others were exculpated and released from certain claims. The PCO is represented by: David B. Madoff, Esq. MADOFF & KHOURY LLP 124 Washington Street, Suite 202 Foxborough, MA 02035 Tel: (508) 543-0040 E-mail: madoff@mandkllp.com 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. Counsel to the Creditors' Committee is Jeffrey D. Sternklar, Esq., at Duane Morris LLP, in Boston, Massachusetts. Deloitte Financial Advisory Services LLC is the financial advisor to the Creditors' Committee. Quincy sold its hospital facility to Steward Health Care System LLC, in October 2011 for $52.4 million, not enough for full payment to secured bondholders owed $56.5 million. The bonds were issued through a state health-care finance agency. Nonetheless, $562,500 -- not subject to bondholders' deficiency claims -- was set aside for unsecured creditors with claims estimated to total between $6 million and $7 million. The disclosure statement estimated unsecured creditors would recover about 8.4%. RADIAN GROUP: Unit Releases Delinquency Data for November --------------------------------------------------------- Radian Guaranty Inc., the mortgage insurance subsidiary of Radian Group Inc., released data for primary mortgage insurance delinquencies for November 2011. November 2011 ------------- Primary New Insurance Written ($ in billions) $2.18 Beginning Primary Delinquent Inventory (# of loans) 110,614 ---------------------------------------------------- ------------- Plus: New Delinquencies 8,013 ---------------------------------------------------- ------------- Less: Cures (6,245) ---------------------------------------------------- ------------- Less: Paids (including those charged to a deductible or captive) (1,482) ---------------------------------------------------- ------------- Less: Rescissions and Denials (542) ---------------------------------------------------- ------------- Ending Primary Delinquent Inventory (# of loans) 110,358 ---------------------------------------------------- ------------- Radian Group Inc. is a U.S.-based holding company that owns a mortgage insurance platform comprised of Radian Guaranty, Radian Insurance and Radian Mortgage Assurance, and financial guaranty insurance company Radian Asset. The group also has investments in other financial services entities. As of September 30, 2011, Radian Group had $7.25 billion in total assets and $1.29 billion in shareholder's equity. Moody's commented that the downgrade of Radian Group's senior debt rating reflects Radian's constrained holding company liquidity and the potential for additional contribution of holding company resources to support its mortgage insurance business. * * * As reported in the Troubled Company Reporter on Nov. 25, 2011, Moody's Investors Service has downgraded Radian Group's senior debt rating to 'Caa1', from 'B3', and placed it on review for possible further downgrade. RCR PLUMBING: Proposes Kurtzman Carson Consultants as Claims Agent ------------------------------------------------------------------ RCR Plumbing and Mechanical, Inc., asks the U.S. Bankruptcy Court for the Central District of California for authorization to amend the terms of retention of Kurtzman Carson Consultants, LLC. The Debtor relates that it was authorized to employ KCC to serve as noticing agent and to provide consulting services. The original scope of employment did not include retention of KCC as claims agent. The Debtor seeks authorization to amend KCC's employment to include serving as claims agent, or provide services including, but not limited to, handling and processing claims and setting up the claims register, however, KCC's additional duties will not include any claims acknowledging services. The Debtor will pay KCC's invoice on a monthly basis. In the event total fees and expenses are expected to exceed $10,000 in any single month, KCC may require advance payment from the Debtor due and payable upon demand and prior to performance of services. KCC will receive a $5,000 retainer as security for payment obligations. To the best of the Debtor's knowledge, KCC is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Court. About RCR Plumbing Founded in 1977, Riverside, California-based RCR Plumbing and Mechanical Inc. is one of the largest plumbing subcontractors in the West Coast. In 1999, RCR Plumbing was acquired by American Plumbing and Mechanical Inc. On Oct. 13, 2003, AMPAM and its affiliated entities, including RCR Plumbing, filed for Chapter 11 bankruptcy (Bankr. W.D. Tex. Lead Case No. 03-55789) in San Antonio. Pursuant to a plan of reorganization, RCR Plumbing received a discharge of any liability arising from contracts completed prior to Aug. 2, 2004, the date the plan was confirmed. The plan disaggregated RCR Plumbing from AMPAM. RCR Plumbing filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-41853) on Oct. 12, 2011. RCR Plumbing blamed a weak construction market and increased insurance costs. Judge Wayne E. Johnson oversees the case. Evan D. Smiley, Esq., and Kyra E. Andrassy, Esq. -- esmiley@wgllp.com and kandrassy@wgllp.com -- at Weiland, Golden, Smiley et al., serve as the Debtor's counsel. Sidley Austin LLP as its special labor and employment counsel BSW & Associates as financial advisor. Kurtzman Carson Consultants LLC serves as noticing agent. In its petition, RCR Plumbing estimated $10 million to $50 million in assets and debts. The petition was signed by Robert C. Richey, president/CEO. The Official Committee of Unsecured Creditors tapped Venable LLP as its counsel. R.E. LOANS: Court Approves Akin Gump as Committee's Counsel ----------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas authorized the Official Committee of Note Holders in the bankruptcy case of R.E. Loans, LLC, et al., to retain Akin Gump Strauss Hauer & Feld LLP as its counsel. The Committee selected Akin Gump because the firm possesses extensive knowledge and expertise in the areas of law relevant to the chapter 11 cases, including bankruptcy, reorganization, litigation, distressed real estate and commercial issues. As counsel, Akin Gump will: (a) advise the Committee with respect to its rights, duties and powers in the Chapter 11 cases; (b) assist and advise the Committee in its consultations with the Debtors and other parties-in-interest relative to the administration of the Debtors' chapter 11 cases; (c) assist the Committee in analyzing the claims of the Debtors' creditors and the Debtors' capital structure and in negotiating with holders of claims and equity interests; (d) assist the Committee in its investigation of the acts, conduct, assets, liabilities and financial condition of the Debtors and of the operation of the Debtors' businesses; (e) assist the Committee in its analysis of, and negotiations with, the Debtors or any third party concerning matters related to, among other things, the assumption or rejection of certain leases of non-residential real property and executory contracts, asset dispositions, financing of other transactions and the terms of one or more plans of reorganization for the Debtors and accompanying disclosure statements and related plan documents; (f) assist and advise the Committee as to its communications with note holders regarding significant matters in these chapter 11 cases; (g) represent the Committee at all hearings and other proceedings before the Bankruptcy Court and other courts; (h) review and analyze applications, orders, statements of operations and schedules filed with the Court and advise the Committee as to their propriety, and to the extent deemed appropriate by the Committee support, join or object thereto; (i) assist the Committee in preparing pleadings and applications as may be necessary in furtherance of the Committee's interests and objectives, including without limitation, motions, memoranda, complaints, adversary complaints, objections or comments in connection with any of the foregoing; (j) assist the Committee in its review and analysis of the Debtors' various commercial agreements; (k) investigate and analyze any claims against the Debtors' officers, directors, and non-debtor affiliates; and (l) perform other legal services as may be required or are otherwise deemed to be in the interests of the Committee in accordance with the Committee's powers and duties as set forth in the Bankruptcy Code, Bankruptcy Rules or other applicable law. The Committee proposes that the Debtors pay Akin Gump in accordance with the firm's ordinary and customary hourly rates. Akin Gump attorneys expected to have primary responsibility for providing services to the Committee and their hourly rates are: Attorney Rate -------- ---- Charles R. Gibbs $840 Michael P. Cooley $660 Michael Haynes $520 Machir Stull $360 Charles R. Gibbs, Esq. at Akin Gump Strauss Hauer & Feld LLP, in Dallas, Texas, assures the Court that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About R.E. Loans R.E. Loans LLC was, for many years, in the business of providing financing to home builders and developers of real property. R.E. Future LLC and Capital Salvage own the real property obtained following foreclosure proceedings initiated by R.E. Loans against its borrowers. R.E. Loans is the sole shareholder of Capital Salvage and the sole member of R.E. Future. B-4 Partners LLC is the sole member of R.E. Loans. As a result of the multiple defaults by R.E. Loans' borrowers, R.E. Loans has transitioned from being a lender to becoming a property management company. Lafayette, California-based R.E. Loans, R.E. Future and Capital Salvage filed for Chapter 11 bankruptcy (Bankr. N.D. Tex. Case Nos. 11-35865, 11-35868 and 11-35869) on Sept. 13, 2011. Judge Barbara J. Houser presides over the case. Stutman, Treister & Glatt and Gardere, Wynne and Sewell, represent the Debtors as counsel. James A. Weissenborn at Mackinac serves as R.E. Loans' chief restructuring officer. The Debtors tapped Hines Smith Carder as their litigation and outside general counsel. The Debtors tapped Alixpartners, LLP as noticing agent. R.E. Loans disclosed $713,622,015 in assets and $886,002,786 in liabilities as of the Chapter 11 filing. William T. Neary, the U.S. Trustee for Region 6, appointed 12 members to the Official Committee of Noteholders of R.E. Loans LLC. R.E. LOANS: Court OKs FTI as Committee's Financial Advisors ----------------------------------------------------------- The Official Committee of Note Holders in the bankruptcy cases of R.E. Loan, LLC, et al., obtained permission from the U.S. Bankruptcy Court for the Northern District of Texas to retain FTI Consulting, Inc., as its financial advisors. The Committee asserts that the services of a financial advisor are necessary and appropriate to enable it to evaluate the complex financial and economic issues raised by the Debtors' reorganization proceedings and to effectively fulfill its statutory duties. As financial advisor, FTI Consulting will: (a) assist and advice the Committee with respect to the Debtors' property management, development and disposition strategies; (b) assist in the evaluation, negotiation or replacement of the Debtors' proposed debtor-in-possession financing facility including, but not limited to, preparation for hearings regarding the use of cash collateral and DIP financing; (c) assist in the review or preparation of information and analysis necessary for the confirmation of a plan in the Debtors' Chapter 11 cases; (d) assist in the evaluation and analysis of insider transactions and avoidance actions, including fraudulent conveyances and preferential transfers; (e) provide litigation advisory services with respect to accounting and tax matters, along with testimony on case related issues as required by the Committee; (f) assist regarding the identification of areas of potential cost savings, including overhead and operating expense reductions and efficiency improvements; (g) assist in the review of financial information distributed by the Debtors to Committee, including, but not limited to, tax returns, audited financial statements, cash flow projections and budgets, cash receipts and disbursement analysis, analysis of various asset and liability accounts, and analysis of proposed transactions for which Court approval is sought; (h) assist the Committee in the review of financial related disclosures required by the Court, including the Schedules of Assets and Liabilities, the Statements of Financial Affairs and Monthly Operating Reports; and (i) render other general business consulting or other assistance as the Committee or its counsel may deem necessary that are consistent with the role of a financial advisor and not duplicative of services provided by other professionals. The Committee and FTI Consulting agreed to a fixed rate of $100,000 per month, plus reimbursement of actual and necessary expenses. To the extent FTI Consulting is called upon to provide expert testimony, including property valuation, or forensic and litigation consulting services, the firm's standard hourly rates will apply. The firm will charge the Debtors' estates at these rates: (a) Assistance in the determination of value of owned real estate property and real estate property that is serving as collateral for loans made by the Debtors to third-party borrowers, and testimony related to such: Senior Managing Directors $780-$895 Directors/Managing Directors $560-$745 Consultants/Senior Consultants $280-$530 Administrative/Paraprofessionals $115-$230 (b) Forensic investigation and testimony related to potential fraudulent activity or misappropriation of funds by current or prior management of the Debtors: Senior Managing Directors $565-$750 Directors/Managing Directors $400-$575 Consultants/Senior Consultants $230-$375 Administrative/Paraprofessionals $160-$250 Additionally, FTI will be entitled to an incentive fee payable on the earlier of (i) consummation of a chapter 11 plan of reorganization or liquidation, or (ii) a sale, transfer, or other disposition of all or a substantial portion of the assets of the Debtors in one or more transactions. Albert S. Conly, senior managing director with FTI Consulting, assures the Court that his firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About R.E. Loans R.E. Loans LLC was, for many years, in the business of providing financing to home builders and developers of real property. R.E. Future LLC and Capital Salvage own the real property obtained following foreclosure proceedings initiated by R.E. Loans against its borrowers. R.E. Loans is the sole shareholder of Capital Salvage and the sole member of R.E. Future. B-4 Partners LLC is the sole member of R.E. Loans. As a result of the multiple defaults by R.E. Loans' borrowers, R.E. Loans has transitioned from being a lender to becoming a property management company. Lafayette, California-based R.E. Loans, R.E. Future and Capital Salvage filed for Chapter 11 bankruptcy (Bankr. N.D. Tex. Case Nos. 11-35865, 11-35868 and 11-35869) on Sept. 13, 2011. Judge Barbara J. Houser presides over the case. Stutman, Treister & Glatt and Gardere, Wynne and Sewell, represent the Debtors as counsel. James A. Weissenborn at Mackinac serves as R.E. Loans' chief restructuring officer. The Debtors tapped Hines Smith Carder as their litigation and outside general counsel. The Debtors tapped Alixpartners, LLP as noticing agent. R.E. Loans disclosed $713,622,015 in assets and $886,002,786 in liabilities as of the Chapter 11 filing. William T. Neary, the U.S. Trustee for Region 6, appointed 12 members to the Official Committee of Noteholders of R.E. Loans LLC. R.E. LOANS: Court Approves Alixpartners as Noticing Agent --------------------------------------------------------- The U.S. Bankruptcy Court for the District of Texas authorized R.E. Loans LLC, R.E. Loans, R.E. Future and Capital Salvage to employ Alixpartners, LLP, as their noticing agent. The firm will, among other things: -- assist with developing the complete notice database system to inform all potential creditors as to the filing of the case and the bar date notice -- process and mail all notices including the initial bankruptcy notices and bar date notices and -- receive and process all proofs of claim and maintain the claims register. The firm's hourly rates are: Personnel Rates --------- ----- Clerical $32-$48 Project Specialist $60-$100 Case Manager $104-$148 IT Program Consultant $112-$152 Consultant $152-$180 Senior Consultant $200-$236 About R.E. Loans R.E. Loans LLC was, for many years, in the business of providing financing to home builders and developers of real property. R.E. Future LLC and Capital Salvage own the real property obtained following foreclosure proceedings initiated by R.E. Loans against its borrowers. R.E. Loans is the sole shareholder of Capital Salvage and the sole member of R.E. Future. B-4 Partners LLC is the sole member of R.E. Loans. As a result of the multiple defaults by R.E. Loans' borrowers, R.E. Loans has transitioned from being a lender to becoming a property management company. Lafayette, California-based R.E. Loans, R.E. Future and Capital Salvage filed for Chapter 11 bankruptcy (Bankr. N.D. Tex. Case Nos. 11-35865, 11-35868 and 11-35869) on Sept. 13, 2011. Judge Barbara J. Houser presides over the case. Stutman, Treister & Glatt and Gardere, Wynne and Sewell, represent the Debtors as counsel. James A. Weissenborn at Mackinac serves as R.E. Loans' chief restructuring officer. The Debtors tapped Hines Smith Carder as their litigation and outside general counsel. The Debtors tapped Alixpartners, LLP as noticing agent. R.E. Loans disclosed $713,622,015 in assets and $886,002,786 in liabilities as of the Chapter 11 filing. William T. Neary, the U.S. Trustee for Region 6, appointed 12 members to the Official Committee of Noteholders of R.E. Loans LLC. REAL MEX: Court Approves Kelley Drye as Committee's Counsel ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware approved the retention of Kelley Drye & Warren LLP as counsel to the Official Committee of Unsecured Creditors of Real Mex Restaurants, Inc., et al. Kelley Drye's hourly rates are: Partner $480 to $850 Counsel $450 to $600 Associate $305 to $580 Paraprofessional $100 to $275 About Real Mex Based in Cypress, California, Real Mex Restaurants, Inc., owns and operates restaurants, primarily through its major subsidiaries El Torito Restaurants, Inc., Chevys Restaurants, LLC, and Acapulco Restaurants, Inc. It has 178 restaurants, with 149 in California. There are also 30 franchised locations. It acquired Chevys Inc. for $90 million through confirmation of Chevy's Chapter 11 plan in 2004. Real Mex Restaurants and 16 of its affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case Nos. 11-13122 to 11-13138) on Oct. 4, 2011. Judge Brendan Linehan Shannon oversees the case. Judge Peter Walsh was initially assigned to the case. The Debtors are represented by Mark Shinderman, Esq., Fred Neufeld, Esq., and Haig M. Maghakian, Esq., at MILBANK, TWEED, HADLEY & McCLOY LLP; and Laura Davis Jones, Esq., and Curtis A. Helm, Esq., at PACHULSKI STANG ZIEHL & JONES LLP as counsel. The Debtors' financial advisors are Imperial Capital, LLC. The Debtors' claims, noticing, soliciting and balloting agent is Epiq Bankruptcy Solutions, LLC. Assets are $272.2 million while debt totals $250 million, according to the Chapter 11 petition. The petitions were signed by Richard P. Dutkiewiez, chief financial officer and executive vice president. Counsel to GE Capital Corp., the DIP Agent and the Prepetition First Lien Secured Agent, are Jeffrey G. Moran, Esq., and Peter P. Knight, Esq., at LATHAM & WATKINS LLP; and Kurt F. Gwynne, Esq., at REED SMITH LLP as counsel. Counsel to the Prepetition Secured Second Lien Trustee are Mark F. Hebbeln, Esq., and Harold L. Kaplan, Esq., at FOLEY & LARDNER LLP. Counsel to the Majority Prepetition Second Lien Secured Noteholders are Adam C. Harris, Esq., and David M. Hillman, Esq., at SCHULTE ROTH & ZABEL LLP; and Russell C. Silberglied, Esq., at RICHARDS LAYTON & FINGER. Z Capital Management LLC, which holds nearly 70% of the Opco term loan, is represented by Derek C. Abbott, Esq., and Chad A. Fights, Esq., at MORRIS NICHOLS ARSHT & TUNNELL LLP; and Lee R. Bogdanoff, Esq., and Whitman L. Holt, Esq., at KLEE TUCHIN BOGDANOFF & STERN LLP. REAL MEX: Court Approves Cole Schotz as Committee's Co-Counsel -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized the Official Committee of Unsecured Creditors in the bankruptcy case of Real Mex Restaurants Inc., et al., to retain Cole, Schotz, Meisel, Forman & Leonard P.A. as its co-counsel. Cole Schotz' current hourly rates are: Member and Special Counsel $340 to $775 Associate $210 to $425 Paralegal $160 to $245 About Real Mex Based in Cypress, California, Real Mex Restaurants, Inc., owns and operates restaurants, primarily through its major subsidiaries El Torito Restaurants, Inc., Chevys Restaurants, LLC, and Acapulco Restaurants, Inc. It has 178 restaurants, with 149 in California. There are also 30 franchised locations. It acquired Chevys Inc. for $90 million through confirmation of Chevy's Chapter 11 plan in 2004. Real Mex Restaurants and 16 of its affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case Nos. 11-13122 to 11-13138) on Oct. 4, 2011. Judge Brendan Linehan Shannon oversees the case. Judge Peter Walsh was initially assigned to the case. The Debtors are represented by Mark Shinderman, Esq., Fred Neufeld, Esq., and Haig M. Maghakian, Esq., at MILBANK, TWEED, HADLEY & McCLOY LLP; and Laura Davis Jones, Esq., and Curtis A. Helm, Esq., at PACHULSKI STANG ZIEHL & JONES LLP as counsel. The Debtors' financial advisors are Imperial Capital, LLC. The Debtors' claims, noticing, soliciting and balloting agent is Epiq Bankruptcy Solutions, LLC. Assets are $272.2 million while debt totals $250 million, according to the Chapter 11 petition. The petitions were signed by Richard P. Dutkiewiez, chief financial officer and executive vice president. Counsel to GE Capital Corp., the DIP Agent and the Prepetition First Lien Secured Agent, are Jeffrey G. Moran, Esq., and Peter P. Knight, Esq., at LATHAM & WATKINS LLP; and Kurt F. Gwynne, Esq., at REED SMITH LLP as counsel. Counsel to the Prepetition Secured Second Lien Trustee are Mark F. Hebbeln, Esq., and Harold L. Kaplan, Esq., at FOLEY & LARDNER LLP. Counsel to the Majority Prepetition Second Lien Secured Noteholders are Adam C. Harris, Esq., and David M. Hillman, Esq., at SCHULTE ROTH & ZABEL LLP; and Russell C. Silberglied, Esq., at RICHARDS LAYTON & FINGER. Z Capital Management LLC, which holds nearly 70% of the Opco term loan, is represented by Derek C. Abbott, Esq., and Chad A. Fights, Esq., at MORRIS NICHOLS ARSHT & TUNNELL LLP; and Lee R. Bogdanoff, Esq., and Whitman L. Holt, Esq., at KLEE TUCHIN BOGDANOFF & STERN LLP. REPLICEL LIFE: Posts C$890,700 Net Loss in Third Quarter -------------------------------------------------------- RepliCel Life Sciences Inc., formerly Newcastle Resources Ltd., reported a net loss of C$890,773 for the third quarter ended Sept. 30, 2011, compared with a net loss of C$286,011 for the same period of 2010. For the nine months ended Sept. 30, 2011, the Company had a net loss of C$2.9 million, compared with a net loss of C$971,694 for the same period last year. The Company had no revenue from operations during the nine months ended Sept. 30, 2011, and 2010. The Company's balance sheet at Sept. 30, 2011, showed C$1.3 million in total assets, C$267,025 in total current liabilities, and shareholders equity of $1.0 million. "At Sept. 30, 2011, the Company is still in the research stage, and has accumulated losses of $5,819,710 since its inception and expects to incur further losses in the development of its business, which casts significant doubt about the Company's ability to continue as a going concern,"the Company said in the filing. A copy of the Form 6-K is available for free at: http://is.gd/cjyOIz A copy of the condensed consolidated interim financial statements for the three and nine months ended Sept. 30, is available for free at http://is.gd/AdR4I6 Headquartered in Vancouver, Canada, RepliCel Life Sciences Inc. has developed RepliCel(TM), a natural hair cell replication technology that has the potential to become the world's first, minimally invasive solution for androgenetic alopecia (pattern baldness) and general hair loss in men and women. RepliCel(TM) is based on autologous cell implantation technology that replicates a patient's hair cells from their own healthy hair follicles and, when reintroduced into areas of hair loss, the Company hopes to initiate natural hair regeneration. Patents for the technology have been issued by the European Union and Australia and are pending in other major international jurisdictions. RIVER ROAD: Lenders' Chapter 11 Plan Declared Effective ------------------------------------------------------- River Road Hotel Partners, LLC, et al., notifies the U.S. Bankruptcy Court for the Northern District of Illinois that the Effective Date of the Lenders' Fourth Amended Joint Chapter 11 Plan dated June 24, 2011, occurred on Nov. 23, 2011. On July 7, 2011, the Court confirmed the lenders' Plan, as amended by the First Addendum to Lenders' Fourth Amended Joint Chapter 11 Plan. As reported in the Troubled Company Reporter on July 11, 2011, the approved plan will give ownership in exchange for $162 million in debt. The lender would waive its deficiency claim on taking title through the plan. About River Road Hotel River Road Hotel Partners, LLC, developed and manages the InterContinental Hotel Chicago O'Hare located in Rosemont, Illinois. Affiliate RadLAX Gateway Hotel LLC owns the Radisson hotel at Los Angeles International Airport. Both are ultimately controlled owned by Harp Group. River Road and its affiliates filed Chapter 11 in Chicago, Illinois (Bankr. N.D. Ill. Lead Case No. 09-30029) on Aug. 17, 2009. Based in Oak Brook, Illinois, River Road estimated assets of as much as $100 million and debt of as much as $500 million in its Chapter 11 petition. River Road disclosed $0 in assets and $14,400,000 in liabilities as of the Chapter 11 filing. Terrence O'Brien & Co. serves as the Debtors' appraiser, and Madigan & Getzendanner as serves as the Debtors' special counsel. RadLAX and its affiliates filed a separate chapter 11 petition (Bankr. N.D. Ill. Case No 09-30047), estimating assets at $50 million to $100 million. David M. Neff, Esq., at Perkins Coie LLP, serves as counsel to the River Road and RadLAX debtors. The two cases, however, are not jointly administered. The Official Committee of Unsecured Creditors is represented by Stephen T. Bobo and Ann E. Pille at Reed Smith LLP. Adam A. Lewis, Esq., and Norman S. Rosenbaum, Esq., of Morrison Foerster LLP of San Francisco, California; and John W. Costello, Esq., and Mary E. Olson, Esq., of Wildman, Harrold, Allen & Dixon LLP of Chicago, Illinois, represent Amalgamated Bank. John Sieger, Esq., and Andrew L. Wool, Esq., of Katten Muchin Rosenman LLP represent U.S. Bank. ROOMSTORE INC: Files Ch. 11 to Facilitate Reorganization Efforts ---------------------------------------------------------------- RoomStore, Inc. discloses a voluntary chapter 11 petition, filed in Richmond, Virginia on Dec. 12, 2011. RoomStore filed for reorganization as a continuation of efforts to improve its business plan. RoomStore has also secured a commitment from its current lender, Wells Fargo Bank, for a $14 million Debtor-In- Possession credit facility. The restructuring process will facilitate RoomStore's financial and operational plans, which are designed to restore the Company to long-term financial health. The decision to file for re-organization comes after newly appointed Chief Executive Officer, Stephen Giordano, took the helm on Nov. 14, 2011. A veteran industry leader with over thirty years in the furniture business, Giordano was brought in to execute the reorganization and turnaround of the business. The board of directors also named Steve Gidumal of Virtus Capital, as the company's new Chairman of the Board. The new board consists of Giordano, Gidumal and furniture industry expert Ron Kaplan. "RoomStore is a viable and recognizable brand that is an established leader in the home furnishings industry. Our dedication to providing our customers with excellent value in home furnishings will provide a strong foundation as we grow and improve during restructuring," says Giordano. RoomStore has engaged Lowenstein Sandler PC and Kaplan & Frank, PLC as counsel and periodic updates on the reorganization will be made available. RoomStore currently has 63 stores and will continue to operate its stores in the ordinary course of business while completing its restructuring, and will also retain its interest in Mattress Discounters Group, LLC. Not First Time Dow Jones' DBR Small Cap reports that RoomStore Inc. filed for Chapter 11 protection with plans to get leaner, but it's not the furniture and bedding retailer's first brush with bankruptcy. According to a separate DBR Small Cap report, RoomStore Inc. filed for Chapter 11 bankruptcy protection with the goal of restructuring. Headquartered in Atlanta, Georgia, Rhodes, Inc., sells brand-name residential furniture to middle- and upper-middle-income customers through 63 stores located in 11 southern and Midwestern states). The Company and two of its debtor-affiliates filed for chapter 11 protection on Nov. 4, 2004 (Bankr. N.D. Ga. Case No. 04-78434). Paul K. Ferdinands, Esq., and Sarah Robinson Borders, Esq., at King & Spalding represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they estimated more than $50 million in total debts. RoomStore offers a wide selection of professionally coordinated home furnishings in complete room packages at value-oriented prices. RoomStore operates 65 stores located in Pennsylvania, Maryland, Virginia, North Carolina, South Carolina and Texas. The Company emerged from bankruptcy in June 2005, independent from its parent, Heilig-Meyers Company. About RoomStore RoomStore, Inc. -- http://www.roomstore.com/-- was started in 1992 by several members of the Levitz family in Dallas, Texas. A leader in the home furnishing industry, it currently operates 63 retail stores in the states of Alabama, Florida, Maryland, North Carolina, Pennsylvania, South Carolina, Texas, and Virginia. RoomStore is a 65% shareholder in Mattress Discounters Group, LLC ("MDG"). Its MDG segment operates 79 bedding stores in the states of Alabama, Virginia, Maryland, the District of Columbia, and Delaware. RoomStore Inc. again filed for Chapter 11 protection (Bankr. E.D. Va. Case No. 11-37790) on Dec. 12, 2011. The Company said it is in the process of evaluating and securing debtor-in-possession financing. SEAHAWK DRILLING: Trustee to Compromise & Settle Adv. Proceeding ---------------------------------------------------------------- On Dec. 13, 2011, the Liquidating Trustee of the Liquidating Trust of Seahawk Drilling, Inc. and its affiliated debtors, together with certain Seahawk Mexican subsidiaries on the one hand, and Pride International, Inc., together with Pride Deepwater USA, Inc., Pride Offshore International LLC, Pride North America LLC, Pride South Pacific LLC, Pride Tennessee LLC and Pride Wisconsin LLC on the other hand, jointly filed the Emergency Joint Motion of Liquidating Trustee and Pride International, Inc. to Compromise and Settle Adversary Proceeding and Objections to Claims of Pride International, Inc. [Claim Nos. 368, 371] [Docket No. 1679] (the "Motion") in the confirmed chapter 11 bankruptcy case In re Seahawk Drilling, Inc., et al., Case No. 11-20089 in the United States Bankruptcy Court for the Southern District of Texas, Corpus Christi Division. The Bankruptcy Court has scheduled a hearing on the Motion on Dec. 22, 2011, at 2:00 p.m. (Central) at the United States Bankruptcy Court, 1133 North Shoreline, 2nd Floor, Corpus Christi, Texas 78401. The Court has set a deadline for filing and service of any objections to the Motion of Tuesday, Dec. 20, 2011, at 4:00 p.m. (Central). About Seahawk Drilling Houston, Texas-based Seahawk Drilling, Inc., engages in a jackup rig business in the United States, Gulf of Mexico, and offshore Mexico. It offers rigs and drilling crews on a day rate contractual basis. The Company and several affiliates filed for Chapter 11 bankruptcy protection (Bankr. S.D. Tex. Lead Case No. 11-20089) on Feb. 11, 2011. Berry D. Spears, Esq., and Jonathan C. Bolton, Esq., at Fullbright & Jaworkski L.L.P., in Houston, serve as the Debtors' bankruptcy counsel. Shelby A. Jordan, Esq., and Nathaniel Peter Holzer, Esq. at Jordan, Hyden, Womble, Culbreth & Holzer, P.C., in Corpus Christi, Texas, serve as the Debtors' co-counsel. Alvarez and Marsal North America, LLC, is the Debtors' restructuring advisor. Simmons & Company International is the Debtors' transaction advisor. Kurtzman Carson Consultants LLC is the Debtors' claims agent. Judy A. Robbins, U.S. Trustee for Region 7, appointed three creditors to serve on an Official Committee of Unsecured Creditors of Seahawk Drilling Inc. and its debtor-affiliates. Heller, Draper, Hayden, Patrick & Horn, L.L.C., represents the creditors committee. In its amended schedules, Seahawk Drilling disclosed $208,190,199 in assets and $438,458,460 in liabilities as of the petition date. Seahawk filed for Chapter 11 protection to complete the sale of all assets to Hercules Offshore, Inc. As reported by the Troubled Company Reporter on April 11, 2011, the Bankruptcy Court approved an Asset Purchase Agreement between Hercules Offshore and its wholly owned subsidiary, SD Drilling LLC, and Seahawk Drilling, pursuant to which Seahawk agreed to sell to Hercules, and Hercules agreed to acquire from Seahawk, all 20 of Sellers' jackup rigs and related assets, accounts receivable and cash and certain liabilities of Sellers in a transaction pursuant to Section 363 of the U.S. Bankruptcy Code. The deal was valued at about $176 million when it received court approval. The purchase price for the acquisition will be funded by the issuance of roughly 22.3 million shares of Hercules Offshore common stock and cash consideration of $25 million, which will be used primarily to pay off Seahawk's Debtor-in-Possession loan. The number of shares of Hercules Offshore common stock to be issued will be proportionally reduced at closing, based on a fixed price of $3.36 per share, if the outstanding amount of the DIP loan exceeds $25 million, with the total cash consideration not to exceed $45 million. The deal closed on April 27, 2011. SIGNATURE STYLES: Will Seek Plan Confirmation at Dec. 21 Hearing ---------------------------------------------------------------- Debtors Signature Styles, LLC, and Signature Styles Gift Cards, LLC, and their the Official Committee of Unsecured Creditors have filed a disclosure statement in support of their Joint Plan of Liquidation of the Debtors, dated Nov. 18, 2011. The hearing to consider the adequacy of the Disclosure Statement and Confirmation of the Joint Plan of Liquidation is scheduled for Dec. 21, 2011, at 12:00 p.m. Objections to the Plan are due by Dec. 15, 2011. The Plan is the culmination of the Debtors' bankruptcy cases, in which the Debtors sold substantially all of their assets to Artemiss, LLC, an affiliate of their prepetition secured lenders and equity holder, Patriarch Partners, LLC. The sale was consummated only after the Committee agreed not to oppose the sale to the Purchaser on the condition that, among other things, the Purchaser increased the purchase price for the Debtors' Assets by providing $2 million in cash, agreed to fund any ordinary course administrative obligations of the Debtors, agreed to waive all Chapter 5 causes of action it acquired against the Debtors' creditors, paid all cure amounts on account of assumed contracts, and waived any and all of its claims against the Debtors. Under the plan, allowed (i) gift card claims are classified as priority claims (Class II), which will be paid in full and (ii) merchandise credit claims are classified as general unsecured claims (Class III), which will receive their pro share of distributable cash (projected to provide for a distribution of approximately 8-10%). There will be no recovery for holders of equity interests (Class IV) until all allowed claims are paid in full. At this time, it is not expected that holders of equity interests will receive any distributions on account of their equity interests. Classification Summary The Plan segregates the various claims against the Debtors and Interests in the Debtors into four (4) Classes. Classes I and II are Unimpaired and Deemed to Accept the Plan. Class III is Impaired and Entitled to Vote. Class IV is Impaired and Deemed to Reject the Plan. Class I. Secured Claims (Estimated at $0 - $100,000). Class I will receive (a) Cash in an amount equal to such Allowed Secured Claim, including any interest, or (b) the collateral securing its allowed Secured Claim and any interest. Class II.A. Priority Claims (Estimated at $0 -$275,000). Class II.A will be paid in full without postpetition interest. Class II.B. Gift Card Claims (Estimated at $60,000 - $70,000). Class II.B will be paid in full. Class III.A. General Unsecured Claims (Estimated at $11,000,000 - $14,000,000. Class III.A will receive its pro rata share (if any) of Distributable Cash. Estimated Recovery is 8-10%. Class III.B. Merchandise Credit Claims (Estimated at $550,000 - $650,000. Class III.B will receive its pro rata share (if any) of Distributable Cash. Estimated Recovery is 8-10%. Class IV. Equity Interests. Class IV will be canceled effective as of the Effective Date. A copy of the Disclosure Statement dated as of Nov. 18, 2011, is available for free at: http://bankrupt.com/misc/signaturestyles.nov18ds.pdf About Signature Styles Signature Styles LLC, owner of the Spiegel catalog, filed a Chapter 11 petition (Bankr. D. Del. Case No. 11-11733) on June 6, 2011, along with a deal to sell the business to affiliates of the current owners and lenders. New York-based Signature Styles, which filed for bankruptcy together with its affiliates, disclosed assets of $48.6 million and debt of $867.6 million. It purchased the Spiegel business for $21.7 million at a foreclosure sale in June 2009. Christopher A. Ward, Esq., at Polsinelli Shughart PC, in Wilmington, Delaware, serves as counsel to the Debtor. Western Reserve Partners LLC serves as investment bankers. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. Signature Styles completed the bankruptcy sale of the Spiegel catalogue business to the secured lender on Sept. 12, 2011. The business was purchased by a fund associated with Patriarch Partners LLC, the owner and lender through affiliated funds. The contract with Patriarch was negotiated before the Chapter 11 filing. The Patriarch fund paid $2 million cash and assumed specified liabilities, including $30 million outstanding on a term loan and revolving credit. No trustee or examiner has been appointed in the Chapter 11 cases. On June 17, 2011, the U.S. Trustee appointed an official committee of unsecured creditors in the Debtors' cases. SINO FOREST: To Skip Interest Payment Due Thursday -------------------------------------------------- Dow Jones' Daily Bankruptcy Review reports that Sino-Forest Corp. said a final report on the forest company's accounting practices and its third-quarter results won't be completed on time, and that executives are considering a host of options for the company, including selling some or all of its businesses. Sino-Forest is a holding company listed in Toronto, Canada. It is engaged in forestry ownership and plantation management in China as well as the sale of timber, wood logs and other wood products in that country. SMITH CREEK: Sec. 341(a) Creditors' Meeting Set for Jan. 17 ----------------------------------------------------------- The United States Trustee in Houston, Texas, will convene a Meeting of Creditors in the Chapter 11 case of Smith Creek Partners, LP, pursuant to Sec. 341(a) of the Bankruptcy Code on Jan. 17, 2012, at 10:00 a.m. at Houston, 515 Rusk Suite 3401. Proofs of claim are due April 16, 2012. Houston-Texas-based Smith Creek Partners LP filed for Chapter 11 bankruptcy (Bankr. S.D. Tex. Case No. 11-40495) on Dec. 7, 2011. Judge Jeff Bohm presides over the case. Richard L. Fuqua, II, Esq. -- fuqua@fuquakeim.com -- at Fuqua & Associates, PC, serves as the Debtor's counsel. Smith Creek estimated $10 million to $50 million in assets and $1 million to $10 million in debts. The petition was signed by Stephen R. Fincher, president of Linchpin Investments, Inc., Smith Creek's general partner. SOLYNDRA LLC: Wants Lease Decision Period Extended Until April 2 ---------------------------------------------------------------- Solyndra LLC, et al., ask the U.S. Bankruptcy Court for the District of Delaware to extend until April 2, 2012, the deadline to assume or reject unexpired leases of nonresidential real property. Absent the extension, the Debtors' time to decide on leases will expire on Jan. 3, 2012 The Debtors relate that it has engaged its efforts to effectuate a sale of its business to a turnkey buyer who will acquire all or substantially all of the assets used in the Debtors' business. The Debtors believe that a a turnkey sale will provide the best chance for the Debtors to maximize the value of its assets and to reemploy certain of the employees who were terminated prior to the commencement of the cases. While no acceptable turnkey sale bid was received by the bid deadline, parties continue to express interest in acquiring Solyndra's assets on a turnkey basis. Accordingly, Solyndra, in consultation with its key creditor constituencies, determine that an extension of the date and deadlines for the turnkey sale hearing was necessary and appropriate. Pursuant to the continued sale hearing notice, the Debtors continued (i) the bid deadline to Jan. 17, 2012, at 4:00 p.m. (prevailing Pacific Time); (ii) the auction date for the turnkey sale to Jan. 19, 2012, at 10:00 a.m.; (iii) the objection deadline to the turnkey sale motion to Jan. 20, at 12:00 p.m.; (iv) the turnkey sale hearing to Jan. 23, at 1:30 a.m. Accordingly, the Debtors believe that the prudent approach is to allow parties to conduct additional due diligence with respect to the continued turnkey sale hearing. The Debtors set a Dec. 21, hearing at 11:30 a.m. on the requested extension in the lease decision period. About Solyndra LLC Founded in 2005, Solyndra LLC is a U.S. manufacturer of solar photovoltaic solar power systems specifically designed for large commercial and industrial rooftops and for certain shaded agriculture applications. The Company had 968 full time employees and 211 temporary employees. Solyndra has sold more than 500,000 of its panels since 2008 and generated cumulative sales of over $250 million. Fremont, California-based Solyndra and affiliate 360 Degree Solar Holdings Inc. sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12799) on Sept. 6, 2011. Solyndra is at least the third solar company to seek court protection from creditors since August 2011. Solyndra owed secured lenders $783.8 million, including $527.8 million to the U.S. government pursuant to a federal loan guarantee, and held assets valued at $859 million as of the Petition date. The U.S. Federal Financing Bank, owned by the U.S. Treasury Department, is the Company's biggest lender. In the Chapter 11 cases, the Debtors are pursuing a two-pronged strategy to effectuate either a sale of their business to a "turnkey" buyer who may acquire substantially all of Solyndra's assets or, if the Debtors are unable to identify any such potential buyers, an orderly liquidation of the Debtors' assets for the benefit of their creditors. Judge Mary F. Walrath presides over the Debtors' cases. The Debtors are represented by Pachulski Stang Ziehl & Jones LLP as legal adviser. AlixPartners LLP serves as noticing claims and balloting agent. Imperial Capital LLC serves as the company's investment banker and financial adviser. The Debtors also tapped former Massachusetts Governor William F. Weld, now with the law firm McDermott Will & Emery, to represent the company in government investigations and related litigation. BDO Consulting, a division of BDO USA, LLP, as financial advisor and BDO Capital Advisors, LLC, serves as investment banker for the creditors' panel. No trustee or examiner has been appointed in the case. Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed seven unsecured creditors to serve on the Official Committee of Unsecured Creditors of Solyndra LLC. The Committee has tapped Blank Rome LLP as counsel. Solyndra is at least the fourth solar company to seek court protection from creditors since August 2011. Other solar firms are Evergreen Solar and start-up Spectrawatt Inc., both of which filed in August, and Stirling Energy Systems Inc., which filed for Chapter 7 bankruptcy late in September. SOUTHERN MONTANA: Trustee Seeks to Hire H&B as Counsel ------------------------------------------------------ Lee A. Freeman, in his capacity as duly appointed and acting Chapter 11 Trustee in the bankruptcy case of Southern Montana Electric Generation and Transmission Cooperative, Inc., seeks permission from the U.S. Bankruptcy Court for the District of Montana to retain Horowitz & Burnett, P.C., as his counsel. As counsel, Horowitz & Burnett will: (a) provide legal advise to the Trustee with respect to his powers and duties and the continued management of the Debtor's business operations; (b) advise the Trustee with respect to his responsibilities in complying with the U.S. Trustee's Operating Guidelines and Reporting Requirements and with the rules of the Court; (c) prepare motions, pleadings, orders, applications, complaints, and other legal documents necessary in the administration of the case; (d) analyze claims and causes of action of the Debtor and object to claims and commence and prosecute adversary proceedings, as necessary, in the administration of the case; (e) represent the Trustee in negotiations with the Debtors' creditors to prepare a plan of reorganization or other exit plan, and prepare and prosecute same; and (f) otherwise protect the interests of the Trustee in all matters pending before the Court. The current hourly rates for the attorneys and paralegals who may be expected to work on this case are: John Cardinal Parks $450/hour Bart B. Burnett $425/hour Robert M. Horowitz $425/hour Kevin S. Neiman $310/hour Debra Howell $90/hour Trulee Hoy $90/hour Horowitz & Burnett will also seek for reimbursement of expenses it incurred in connection with its services. To the best of the Trustee's knowledge, Horowitz & Burnett is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Robert M. Horowitz Horowitz & Burnett, P.C. 1660 Lincoln Street, Suite 1900 Denver, CO 80264 Tel: 303-996-8600 Fax: 303-996-8636 Email: bhorowitz@hblegal.net About Southern Montana Electric Based in Billings, Montana, Southern Montana Electric Generation And Transmission Cooperative, Inc., was formed to serve five other electric cooperatives. The city of Great Falls later joined as the sixth member. Including the city, the co-op serves a population of 122,000. In addition to Great Falls, the service area includes suburbs of Billings, Montana. Southern Montana filed for Chapter 11 bankruptcy (Bankr. D. Mont. Case No. 11-62031) on Oct. 21, 2011. Southern Montana estimated assets of $100 million to $500 million and estimated debts of $100 million to $500 million. Timothy Gregori signed the petition as general manager. Jon E. Doak, Esq., at Doak & Associates, P.C., in Billings, Montana, serves as the Debtor's counsel. Standard & Poor's Ratings Services in October lowered its issuer credit rating on SME to 'CC' from 'BBB', and placed the rating on CreditWatch with developing implications. These actions follow the cooperative's Oct. 21 bankruptcy filing under Chapter 11 of the U.S. Bankruptcy Code. According to SME, the filing was in response to failure on the part of some of its members to honor contractual obligations, including payment to the cooperative for services. SOUTHERN MONTANA: Trustee Wants Waller & Womack as Local Counsel ---------------------------------------------------------------- Lee A. Freeman, in his capacity as duly appointed and acting Chapter 11 Trustee in the bankruptcy case of Southern Montana Electric Generation and Transmission Cooperative, Inc., seeks permission from the U.S. Bankruptcy Court for the District of Montana to retain Waller & Womack, P.C., as local counsel, with the law firm of Horowitz & Burnett, P.C., to act as primary bankruptcy counsel. The professional services that Waller & Womack is to render include providing legal advise to the Trustee and the law firm of Horowitz & Burnett with respect to all aspects of the Chapter 11 bankruptcy proceeding. The Trustee agreed that Joseph V. Womack will be paid $300 per hour plus reimbursement for costs he incurred. To be best knowledge of the Trustee, Waller & Womack is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Joseph V. Womack Waller & Womack, P.C. Suite 805 US Bank Building 303 North Broadway Billings, MT 59101 Tel: (406)252-7200 Fax: (406)252-4266 Email: jwomack@jvwlaw.com About Southern Montana Electric Based in Billings, Montana, Southern Montana Electric Generation And Transmission Cooperative, Inc., was formed to serve five other electric cooperatives. The city of Great Falls later joined as the sixth member. Including the city, the co-op serves a population of 122,000. In addition to Great Falls, the service area includes suburbs of Billings, Montana. Southern Montana filed for Chapter 11 bankruptcy (Bankr. D. Mont. Case No. 11-62031) on Oct. 21, 2011. Southern Montana estimated assets of $100 million to $500 million and estimated debts of $100 million to $500 million. Timothy Gregori signed the petition as general manager. Jon E. Doak, Esq., at Doak & Associates, P.C., in Billings, Montana, serves as the Debtor's counsel. Standard & Poor's Ratings Services in October lowered its issuer credit rating on SME to 'CC' from 'BBB', and placed the rating on CreditWatch with developing implications. These actions follow the cooperative's Oct. 21 bankruptcy filing under Chapter 11 of the U.S. Bankruptcy Code. According to SME, the filing was in response to failure on the part of some of its members to honor contractual obligations, including payment to the cooperative for services. SP NEWSPRINT: Section 341(a) Meeting Scheduled for Jan. 9 --------------------------------------------------------- The U.S. Trustee for Region 3 will convene a meeting of creditors of SP Newsprint Holdings LLC on Jan. 3, 2012, at 9:00 a.m. The meeting will be held at J. Caleb Boggs Federal Building, 844 N. King Street, 5th Floor, Room 5209, Wilmington, Delaware. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. About SP Newsprint Greenwich, Conn.-based SP Newsprint Holdings LLC -- aka Bulldog Acquisition I LLC, Bulldog Acquisition II LLC, Publishers Papers, Southeastern Paper Recycling and SP Newsprint Merger LLC -- and three affiliates, SP Newsprint Co. LLC, SP Recycling Corporation and SEP Technologies L.L.C, filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 11-13649) on Nov. 15, 2011. SP Newsprint Holdings LLC is a newsprint company controlled by polo-playing mogul Peter Brant. It is one of the largest producers of newsprint in North America. SP Recycling Corporation, a Georgia corporation and the Debtors' other operating company, was established in 1980 as a means for SP to secure a ready supply of recycled fiber, a key raw material for its newsprint. SP Newsprint is the second Brant-owned newsprint company to tumble into bankruptcy proceedings in recent years. Current and former affiliated entities are Bear Island Paper Company, L.L.C., Brant Industries, Inc., F.F. Soucy, Inc., Soucy Partners Newsprint, Inc., White Birch Paper Company. Judge Christopher S. Sontchi presides over the case. Joel H. Levitin, Esq., Maya Peleg, Esq., and Richard A. Stieglitz Jr., Esq., at Cahill Gordon & Reindel LLP serve as the Debtors' lead counsel. Lee E. Kaufman, Esq., and Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., serve as the Debtors' Delaware counsel. AlixPartners LLP serves as the Debtors' financial advisors and The Garden City Group Inc. serves as the Debtors' claims and noticing agent. In its petition, SP Newsprint Holdings estimated $100 million to $500 million in assets and debts. The petitions were signed by Edward D. Sherrick, executive vice president and chief financial officer. Counsel for GECC as Pre-Petition Agent are Richard A. Levy, Esq., and David Hammerman, Esq., at Latham & Watkins LLP; and Kurt F. Gwynne, Esq., at Reed Smith LLP. Counsel to Avenue Investments LP are John Bessonette, Esq., and Douglas Mannal, Esq., at Kramer Levin Naftalis & Frankel LLP. SPECTRAWATT INC: Unsecured Trade Creditors To Get 12% Recovery -------------------------------------------------------------- SpectraWatt Inc. has filed a disclosure statement in connection with the Debtor's Chapter 11 Plan of Liquidation dated Nov. 4, 2011. The Plan contemplates the transfer of all of the Debtor's assets into a Liquidating Trust for distribution to holders of Allowed Claims by the Liquidating Trustee The Plan incorporates an agreement between the Debtor and the Series A-1 Noteholders, pursuant to which the Series A-1 Noteholders have permitted the Debtor to reserve certain proceeds from the Debtor's sale* of substantially all of its physical assets, as approved by the Bankruptcy Court on Oct. 7, 2011, and to use those proceeds to satisfy certain claims, as provided in the Plan. *In an auction held Sept. 28, 2011, Canadian Solar, Inc., acquired all capital equipment of SpectraWatt, Inc., for $4.945 million. Further, the Series A-1 Noteholders have agreed that if the class of general unsecured trade creditors vote in favor of the Plan, the Series A-1 Noteholders will provide a recovery to holders of Allowed General Unsecured Trade Claims equal to the percentage recovery that the Series A-1 Noteholders have received on account of their Secured Claims. Such recovery is estimated to be approximately 12%. The Series A-1 Noteholders have further agreed that if the class of general unsecured trade creditors (Class 6) votes in favor of the Plan, the Series A-1 Noteholders will waive their substantial deficiency claims, and the Debtor has agreed to waive its right to pursue (or transfer to the Liquidating Trust) any Avoidance Actions in that event. Additionally, the Series A-1 Noteholders have agreed to fund a wind-down reserve in an amount not less than $50,000 in order fund the costs of winding down the Debtor's estate. Under the Plan, Class 1 (Allowed Series A-1 Noteholder Secured Claims), Class 2 (Allowed Crystalox Secured Claim), Class 3 (Allowed SUMCO Secured Claim), Class 6 (Allowed General Unsecured Trade Claims), and Class 7 (Allowed Series A-1 Noteholder Deficiency Claims) are Impaired and Entitled to Vote. Votes will not be solicited from holders of Claims in Class 4 (Allowed Other Secured Claims) and Class 5 (Allowed Priority Non- Tax Claims, which Classes are Unimpaired under the Plan. All Interests in Class 8 will be deemed canceled and extinguished without any further action of any party. A copy of the disclosure statement with respect to the Debtor's Plan of Liquidation, dated Nov. 4, 2011, is available for free at: http://bankrupt.com/misc/spectrawatt.dkt99.pdf About SpectraWatt Inc. Based in Hopewell Junction, New York, SpectraWatt Inc. was spun off from Intel in June 2008 and raised $50 million through a sale of preferred stock to its former parent and other investors including Goldman Sachs Group Inc.'s Cogentrix Energy LLC, PCG Clean Energy and Berlin-based solar panel maker Solon SE. The Company has also issued about $36.7 million in senior secured convertible notes. The Company has a manufacturing facility in Hopewell Junction designed to generate over 200 megawatts of production per year. The plant began operations in January 2010 with an initial capacity of only 30 megawatts per year. The Company began winding down its affairs late last year after encountering setbacks and shut down the lone manufacturing facility in March, and fired all its workers. SpectraWatt filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 11-37366) on Aug. 19, 2011, in Poughkeepsie, New York. SpectraWatt estimated as much as $50 million in both debt and assets as of the Chapter 11 filing. Mark W. Wege, Esq., and Eric M. English, Esq., at King & Spalding LLP, in Houston, Texas, and Scott I. Davidson, Esq., at King & Spalding LLP, in New York, represent the Debtor as counsel. T.J.E. LLC: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: T.J.E., LLC 154 Westford Hill Road Ashford, CT 06278 Bankruptcy Case No.: 11-23443 Chapter 11 Petition Date: December 8, 2011 Court: United States Bankruptcy Court District of Connecticut (Hartford) Judge: Albert S. Dabrowski Debtor's Counsel: Benjamin R. Plourd, Esq. Patrick W. Boatman, Esq. LAW OFFICES OF PATRICK W. BOATMAN LLC 111 Founders Plaza, Suite 1000 East Hartford, CT 06108 Tel: (860) 291-9061 Fax: (860) 291-9073 E-mail: bplourd@boatmanlaw.com pboatman@boatmanlaw.com Scheduled Assets: $1,743,525 Scheduled Debts: $2,827,764 A list of the Company's 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ctb11-23443.pdf The petition was signed by Jeffrey Love, managing member. TN-K ENERGY: Closes Sale Agreement with K&K for $910,000 -------------------------------------------------------- TN-K Energy Group Inc., on Nov. 14, 2011, entered into a contract for sale of oil & gas leasehold estate with King's Oil, LLC, and K & K Acquisitions, LLC. On Dec. 6, 2011, the Company closed on this transaction pursuant to which the Company sold its working interest in the Charles and Lynda Anderson lease in Clinton County, Kentucky, including all well equipment, tanks, pumps, and related equipment, to K & K Acquisitions, LLC, for an aggregate cash purchase price of $910,000. Pursuant to the terms of the agreement entered into between the company, King's Oil, LLC, and the purchaser, the Company assigned its working interest in the lease subject to the following: * the Company retained a 5% interest in the lease, a 5% interest in certain specific wells and a 10% interest in certain additional wells, which will increase to 10% interest in the lease and a 10% interest in all wells at such time as the purchaser has recouped $850,000 of the purchase price; and * the Company agreed to pay or cause to the 20% working interest owners to pay 36.5% of the completion and/or plugging costs on two certain wells. The Company presently expects to continue to be the operators of this lease. The Company paid legal expenses of $10,000 and a finder's fee to a third party of $50,000 in this transaction. The Company used $510,500 of the proceeds to satisfy in full Guaranteed Contract entered into in September 2010 with King's Oil, LLC related to this lease. The Company is using the balance of the proceeds for working capital. About TN-K Energy Crossville, Tenn.-based TN-K Energy Group, Inc., an independent oil exploration and production company, engaged in acquiring oil leases and exploring and developing crude oil reserves and production in the Appalachian basin. The Company also reported net income before taxes of $1.88 million on $846,065 of revenue for the nine months ended Sept. 30, 2011, compared with net income before taxes of $3.41 million on $652,834 of revenue for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $2.93 million in total assets, $7.81 million in total liabilities and a $4.88 million total stockholders' deficit. As reported in the TCR on April 26, 2011, Sherb & Co., LLP, in New York City, expressed substantial doubt about TN-K Energy's ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company has incurred recurring operating losses and will have to obtain additional financing to sustain operations. VAN ZANT: Case Summary & 4 Largest Unsecured Creditors ------------------------------------------------------ Debtor: Van Zant, LLC 80 Brookside Drive Greenwich, CT 06831 Bankruptcy Case No.: 11-52419 Chapter 11 Petition Date: December 7, 2011 Court: United States Bankruptcy Court District of Connecticut (Bridgeport) Judge: Alan H.W. Shiff Debtor's Counsel: Joseph J. Romanello, Esq. ROMANELLO LAW FIRM 57 North Street, Ste. 304 Danbury, CT 06810 Tel: (203) 205-0891 E-mail: jjr@romanellolawfirm.com Scheduled Assets: $960,000 Scheduled Debts: $1,361,000 A list of the Company's four largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/ctb11-52419.pdf The petition was signed by Joseph Gega, member. ULTIMATE ESCAPES: Wins Confirmation of Liquidating Plan ------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Ultimate Escapes Inc. won approval of a liquidating Chapter 11 plan on Dec. 8. In signing the confirmation order, the bankruptcy judge in Delaware said the plan was supported by an overwhelming vote, even though unsecured creditors with $126 million in claims are slated to recover 4 percent at most. Mr. Rochelle relates that the assets were sold last year to several buyers. Secured lender CapitalSource Finance LLC purchased most in exchange for $52.7 million in secured debt. Laurence Development LP bought 10 properties for $14.3 million cash. One property went for $1.8 million cash and another for $1.9 million. About Ultimate Escapes Ultimate Escapes, Inc. -- http://www.ultimateescapes.com/-- was a luxury destination club that sold club memberships offering members reservation rights to use its vacation properties, subject to the rules of the club member's Club Membership Agreement. The Company's properties are located in various resort locations throughout the world. Kissimmee, Florida-based Ultimate Escapes Holdings, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 10-12915) on Sept. 20, 2010. Affiliates Ultimate Resort, LLC; Ultimate Operations, LLC; Ultimate Resort Holdings, LLC; Ultimate Escapes, Inc. (fka Secure America Acquisition Corporation); P & J Partners, LLC; UE Holdco, LLC; UE Member, LLC, et al., filed separate Chapter 11 petitions. Scott D. Cousins, Esq., Sandra G. M. Selzer, Esq., and Nancy A. Mitchell, Esq., at Greenberg Traurig LLP, assist the Debtors in their restructuring efforts. CRG Partners Group LLC is the Debtors' chief restructuring officer. BMC Group Inc. is the Company's claims and notice agent. Christopher A. Ward, Esq., Shanti M. Katona, Esq., and Peter W. Ito, Esq., at Polsinelli Shughart PC, represent the Creditors Committee. Ultimate Escapes estimated assets at $10 million to $50 million and debts at $100 million to $500 million as of the Petition Date. WASHINGTON LOOP: Trustee Seeks to Retain JRS CPA as Accountants --------------------------------------------------------------- Louis X. Amato, in his capacity as Chapter 11 Trustee in the bankruptcy case of Washington Loop, LLC, seeks permission from the U.S. Bankruptcy Court for the Middle District of Florida to retain Joseph R. Schortz, C.P.A, PLLC, as accountants. JRS CPA will, among other things: (1) compile the annual and month-end balance sheets and the related statements of income, retained earnings, and cash flows, or any other court requested reports of the Debtor for the year 2011 and issue an accountant's report thereon in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants; (2) prepare the federal income tax return with supporting schedules; (3) prepare the state tangible personal property tax return; and (4) prepare any bookkeeping entries that are necessary in connection with preparation of the income tax returns. The firm's hourly rates are: Engagement Manager $230 Senior Associate $170 Associate $140 Bookkeeper $100 The Trustee believes that although JRS CPA has performed accounting services for the Debtor in the past, JRS CPA does not hold any interest that are adverse to the Debtor or the Debtor's estate. About Washington Loop Punta Gorda, Florida-based Washington Loop, LLC, operates an aggregate mine in Charlotte County, Florida. The Company owns two parcels of real property and improvements -- the Loop Property and the Mirror Lakes Property -- which, together, comprise roughly 474 adjoining acres in Punta Gorda, Charlotte County. The Company filed for Chapter 11 bankruptcy protection on March 31, 2011 (Bankr. M.D. Fla. Case No. 11-06053). Judge Jeffery P. Hopkins presides over the case. Steven M. Berman, Esq., and Hugo S. deBeaubien, Esq., at Shumaker, Loop & Kendrick, LLP, in Tampa, Fla., represent the Debtor as counsel. The Debtor disclosed $45,098,259 in assets and $19,703,694 in liabilities as of the Chapter 11 filing. The Debtor was dismissed from a prior Chapter 11 case (Case No. 10-27981) by order of the Court entered on March 17, 2011. In the prior Chapter 11 case, the Debtor's Schedule F, as filed under penalty of perjury, listed some 34 general unsecured creditors totaling claims of $1,953,354. All Schedule F debts were listed as non-contingent, liquidated, and undisputed. The Debtor now declares that all Schedule F debts are unliquidated. These schedules were filed no less than two weeks after the dismissal of the prior Chapter 11 case, and only six weeks after the Debtor filed its Schedule F in that case. Don Walton, the United States Trustee for Region 21, and Charles A. Robinson Living Trust, creditor and interest holder against Washington Loop, filed separate requests to convert the Debtor's 2011 Chapter 11 reorganization case to Chapter 7 liquidation. Washington Loop filed with the Court a Chapter 11 plan and an explanatory disclosure statement on Aug. 18, 2011. The Troubled Company Reporter published a summary of the Plan in its Sept. 6, 2011 edition. The Plan is a reorganization plan accomplished through the continuation of the Debtor's primary business: the mining of the 750-acre property in Punta Gorda, Florida. The Debtor seeks to accomplish payment under the Plan primarily from the proceeds of the sale of mining materials and or the refinance of the Washington Loop Property. The Plan proposes to pay secured creditors -- ROBBIE, Mirror Lakes V, Mike Treworgy and Wells Fargo Equip Finance -- the present value of their claim at a market interest rate over an 84-month period through net income generated from the mining operation and through a sale or refinance of the Washington Loop Property. The Effective Date of the proposed Plan is Dec. 15, 2011. The first payment due under the plan is Jan. 15, 2012. Allowed Class 8 General Unsecured Claims will receive 100% of their allowed claim on or before the 84th month following the Effective Date. A full-text copy of the Disclosure Statement is available for free at http://ResearchArchives.com/t/s?76c8 On Sept. 19, 2011, the Court appointed of Louis X. Amato as Chapter 11 trustee, which is represented by Shumaker, Loop & Kendrick, LLP. WASHINGTON LOOP: Trustee Seeks to Hire Doughlas Wilson as Broker ---------------------------------------------------------------- Louis X. Amato, in his capacity as Chapter 11 Trustee for Washington Loop, LLC, seeks permission from the U.S. Bankruptcy Court for the Middle District of Florida to retain Douglas Wilson Companies as broker nunc pro tunc to Dec. 1, 2011. Mr. Amato seeks to employ Douglas Wilson as broker for the purpose of facilitating the sale of the Debtor's assets, including the critical tasks of marketing the assets and managing the bids of interested buyers. The Debtor's Assets consist primarily of a 474 acre silica mine and related personal property located at Punta Gorda, Florida. Pursuant to the Marketing Proposal, Douglas Wilson would receive, as compensation for its services as broker, a commission in the amount of 1.5% of the total consideration from any sale in an amount of more than $30,000,000. Douglas Wilson would also require payment in the amount of $5,000 to cover the costs of an outside mine consultant. Any additional costs incurred by the outside consultant would be paid by Douglas Wilson from its commission. To the best of the Trustee's knowledge, Douglas Wilson is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Washington Loop Punta Gorda, Florida-based Washington Loop, LLC, operates an aggregate mine in Charlotte County, Florida. The Company owns two parcels of real property and improvements -- the Loop Property and the Mirror Lakes Property -- which, together, comprise roughly 474 adjoining acres in Punta Gorda, Charlotte County. The Company filed for Chapter 11 bankruptcy protection on March 31, 2011 (Bankr. M.D. Fla. Case No. 11-06053). Judge Jeffery P. Hopkins presides over the case. Steven M. Berman, Esq., and Hugo S. deBeaubien, Esq., at Shumaker, Loop & Kendrick, LLP, in Tampa, Fla., represent the Debtor as counsel. The Debtor disclosed $45,098,259 in assets and $19,703,694 in liabilities as of the Chapter 11 filing. The Debtor was dismissed from a prior Chapter 11 case (Case No. 10-27981) by order of the Court entered on March 17, 2011. In the prior Chapter 11 case, the Debtor's Schedule F, as filed under penalty of perjury, listed some 34 general unsecured creditors totaling claims of $1,953,354. All Schedule F debts were listed as non-contingent, liquidated, and undisputed. The Debtor now declares that all Schedule F debts are unliquidated. These schedules were filed no less than two weeks after the dismissal of the prior Chapter 11 case, and only six weeks after the Debtor filed its Schedule F in that case. Don Walton, the United States Trustee for Region 21, and Charles A. Robinson Living Trust, creditor and interest holder against Washington Loop, filed separate requests to convert the Debtor's 2011 Chapter 11 reorganization case to Chapter 7 liquidation. Washington Loop filed with the Court a Chapter 11 plan and an explanatory disclosure statement on Aug. 18, 2011. The Troubled Company Reporter published a summary of the Plan in its Sept. 6, 2011 edition. The Plan is a reorganization plan accomplished through the continuation of the Debtor's primary business: the mining of the 750-acre property in Punta Gorda, Florida. The Debtor seeks to accomplish payment under the Plan primarily from the proceeds of the sale of mining materials and or the refinance of the Washington Loop Property. The Plan proposes to pay secured creditors -- ROBBIE, Mirror Lakes V, Mike Treworgy and Wells Fargo Equip Finance -- the present value of their claim at a market interest rate over an 84-month period through net income generated from the mining operation and through a sale or refinance of the Washington Loop Property. The Effective Date of the proposed Plan is Dec. 15, 2011. The first payment due under the plan is Jan. 15, 2012. Allowed Class 8 General Unsecured Claims will receive 100% of their allowed claim on or before the 84th month following the Effective Date. A full-text copy of the Disclosure Statement is available for free at http://ResearchArchives.com/t/s?76c8 On Sept. 19, 2011, the Court appointed of Louis X. Amato as Chapter 11 trustee, which is represented by Shumaker, Loop & Kendrick, LLP. WASHINGTON LOOP: Trustee Seeks to Retain Insider as Consultant -------------------------------------------------------------- Louis X. Amato, in his capacity as Chapter 11 Trustee for Washington Loop, LLC, seeks permission from the U.S. Bankruptcy Court for the Middle District of Florida to retain Lovina Lehr as consultant nunc pro tunc to Oct. 1, 2011. Ms. Lehr is a principal of the Debtor and was primarily responsible for overseeing and managing the Debtor's operations from before the Petition Date through Sept. 18, 2011. The Trustee believes that the value of Ms. Lehr's services to be rendered to the Debtor as a consultant is approximately $3,000 per month. About Washington Loop Punta Gorda, Florida-based Washington Loop, LLC, operates an aggregate mine in Charlotte County, Florida. The Company owns two parcels of real property and improvements -- the Loop Property and the Mirror Lakes Property -- which, together, comprise roughly 474 adjoining acres in Punta Gorda, Charlotte County. The Company filed for Chapter 11 bankruptcy protection on March 31, 2011 (Bankr. M.D. Fla. Case No. 11-06053). Judge Jeffery P. Hopkins presides over the case. Steven M. Berman, Esq., and Hugo S. deBeaubien, Esq., at Shumaker, Loop & Kendrick, LLP, in Tampa, Fla., represent the Debtor as counsel. The Debtor disclosed $45,098,259 in assets and $19,703,694 in liabilities as of the Chapter 11 filing. The Debtor was dismissed from a prior Chapter 11 case (Case No. 10-27981) by order of the Court entered on March 17, 2011. In the prior Chapter 11 case, the Debtor's Schedule F, as filed under penalty of perjury, listed some 34 general unsecured creditors totaling claims of $1,953,354. All Schedule F debts were listed as non-contingent, liquidated, and undisputed. The Debtor now declares that all Schedule F debts are unliquidated. These schedules were filed no less than two weeks after the dismissal of the prior Chapter 11 case, and only six weeks after the Debtor filed its Schedule F in that case. Don Walton, the United States Trustee for Region 21, and Charles A. Robinson Living Trust, creditor and interest holder against Washington Loop, filed separate requests to convert the Debtor's 2011 Chapter 11 reorganization case to Chapter 7 liquidation. Washington Loop filed with the Court a Chapter 11 plan and an explanatory disclosure statement on Aug. 18, 2011. The Troubled Company Reporter published a summary of the Plan in its Sept. 6, 2011 edition. The Plan is a reorganization plan accomplished through the continuation of the Debtor's primary business: the mining of the 750-acre property in Punta Gorda, Florida. The Debtor seeks to accomplish payment under the Plan primarily from the proceeds of the sale of mining materials and or the refinance of the Washington Loop Property. The Plan proposes to pay secured creditors -- ROBBIE, Mirror Lakes V, Mike Treworgy and Wells Fargo Equip Finance -- the present value of their claim at a market interest rate over an 84-month period through net income generated from the mining operation and through a sale or refinance of the Washington Loop Property. The Effective Date of the proposed Plan is Dec. 15, 2011. The first payment due under the plan is Jan. 15, 2012. Allowed Class 8 General Unsecured Claims will receive 100% of their allowed claim on or before the 84th month following the Effective Date. A full-text copy of the Disclosure Statement is available for free at http://ResearchArchives.com/t/s?76c8 On Sept. 19, 2011, the Court appointed of Louis X. Amato as Chapter 11 trustee, which is represented by Shumaker, Loop & Kendrick, LLP. WINDOW FACTORY: Involuntary Chapter 11 Case Summary --------------------------------------------------- Alleged Debtor: The Window Factory, Inc. 9323 Activity Road, Suite C San Diego, CA 92126 Case Number: 11-19842 Involuntary Chapter 11 Petition Date: December 8, 2011 Court: Southern District of California (San Diego) Judge: Laura S. Taylor Petitioners' Counsel: Jeffrey D. Schreiber, Esq. THE SCHREIBER LAW FIRM 2635 Camino Del Rio South, Suite 301 San Diego, CA 92108 Tel: (619) 269-8600 E-mail: jschreiber@msn.com Chapter 11 petitioners: Petitioner Nature of Claim Claim Amount ---------- --------------- ------------ American Integrity manufactured windows $393,734 Corp. supplied to Debtor P.O. Box 999 Apple Valley, CA 92307 Ajit Ahooja consulting for $10,675 10531 Commons Drive accounting services # 170 San Diego, CA 92127 Herde Computer computer network $4,500 Services repairs 2830 Echo Valley Road Jamul, CA 91935 WYSTERIA LLC: Section 341(a) Meeting Continued Until Jan. 3 ----------------------------------------------------------- The U.S. Trustee for Region 17 has continued the first meeting of creditors in the Chapter 11 case of Wysteria, LLC from Dec. 27, 2011, until Jan. 3, 2012, at 9:00 a.m. The meeting will be held at 235 Pine Street, Suite 850, San Francisco, California. The meeting was initially scheduled for Dec. 27, 2011. Wysteria, LLC, filed for Chapter 11 bankruptcy (Bankr. N.D. Calif. Case No. 11-34171) on Nov. 18, 2011. The Company estimated assets of $10 million to $50 million and estimated debts of $10 million to $50 million. The petition was signed by Stephen H. Kendrick, as manager. Judge Dennis Montali presides the case. The Debtor is represented by Joel K. Belway, Esq., at the Law Offices of Joel K. Belway. XTL BIOPHARMACEUTICALS: Posts $337,000 Net Loss in Third Quarter ---------------------------------------------------------------- In a Form 6-K filed with the U.S. Securities and Exchange Commission on Nov. 25, 2011, XTL Biopharmaceuticals Ltd. attached an English translation (from Hebrew) of the Company's interim financial statements for the three months ended Sept. 30, 2011, as submitted on the Tel Aviv Stock Exchange. The Company reported a net loss of US$337,000 for the three months ended Sept. 30, 2011, compared with a net loss of US$290,000 for the same period of 2010. The Company reported a net loss of US$919,000 for the nine months ended Sept. 30, 2011, compared with a net loss of US$942,000 for the same period last year. The Company has no revenues from operations at this stage and funds its operations from its own capital and from external sources by way of issuing equity instruments. The Company's balance sheet at Sept. 30, 2011, showed US$4.4 million in total assets, US$643,000 in total liabilities, and stockholders' equity of US$3.7 million. As reported in the TCR on April 6, 2011, Kesselman & Kesselman, in Tel-Aviv, Israel, expressed substantial doubt about XTL Biopharmaceuticals' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that during the period ended on Dec. 31, 2010, the Company had a loss in the amount of $1.3 million and a negative cash flow from operating activities of $735,000. A copy of the Form 6-K is available for free at: http://is.gd/rEKi97 Herzliya, Israel-based XTL Biopharmaceuticals Ltd. is engaged in the development of therapeutics, among others, for the treatment of unmet medical needs, improvement of existing medical treatment and business development in the medical realm. The Company was incorporated under the Israeli Companies Ordinance on March 9, 1993. The Company owns 100% of Xtepo Ltd. and owns 100% of a U.S. company, XTL Biopharmaceuticals Inc., which was incorporated in 1999 under the laws of the State of Delaware. The Company is in the planning and preparation stages for implementing Phase 2 clinical trial of rHuEPO drug designed to treat cancer patients with multiple myeloma. Further, the Company has certain milestone rights in the development of treatment for hepatitis C ("DOS") from Presidio Pharmaceuticals Inc. ("Presidio"), a U.S. biotechnology company. ZIONS BANCORP: Fitch Affirms Subordinated Debt Rating at 'BB+' -------------------------------------------------------------- Fitch Ratings has affirmed the long- and short-term Issuer Default Ratings (IDRs) for Zions Bancorporation (ZION) at 'BBB-/F3'. The Rating Outlook is Stable. Fitch's rating action is supported by the continued improvement in ZION's asset quality metrics. ZION's non-performing assets (NPAs) as a percentage of gross loans plus other real estate owned (OREO) was 4.88% as of Sept. 30, 2011, down from 5.44% at June 30, 2011, and 5.81% at March 31, 2011. Additionally, the absolute dollar amount of NPAs has declined to $1.8 billion at Sept. 30, 2011 from $2.36 billion at year-end (YE) 2010. Similarly, ZION's net-charge-offs (NCOs) have declined over the course of the year, and as of the quarter ending Sept. 30, 2011 amounted to 1.11% on an annualized basis. Fitch believes ZION's reserve remains adequate at 3.13% of gross loans as of Sept. 30, 2011. The rating action is also supported by ZION's return to profitability in 2011, after the company had reported losses throughout 2009 and 2010. While Fitch notes that the majority of this profitability was due to reserve releases, it would further expects that future profit growth will largely be predicated on ZION's ability to meaningfully and measurably grow loans over time, as future benefit from potential reserve releases should be more modest. Fitch continues to view ZION's approach to managing capital as somewhat aggressive. The company's tangible common equity (TCE) ratio was 6.89% as of Sept. 30, 2011, down modestly from 6.98% at YE2010. However, Fitch further notes that ZION's capital ratios remain adequate for its present rating level, even though ratios remain slightly lower than those of some similarly rated entities. Fitch believes that ZION's existing capital ratios combined with the better asset quality performance and improved profitability support a Stable Rating Outlook. Even with this viewpoint, Fitch notes that unlike some large regional bank peers who have progressed much more quickly in the wake of the credit crisis, ZION still has a number of challenges ahead of it as it continues to work to repair its business. Fitch notes that these challenges have already been incorporated into the company's current ratings. Fitch believes ZION will look to repay its $1.4 billion of TARP shares to the U.S. Treasury at some point in 2012. Given that ZION is classified as a CapPR bank, and therefore subject to stress tests from the Federal Reserve in early 2012. Fitch does not expect the company to try repay its TARP shares until some point in 2012. ZION will also continue to deal with its problematic bank and insurance company TRUPs CDO portfolio. On balance, current trends of paydowns and prepayments have been favorable, and performance of these securities is further supported by the maintenance of the company's total return swap with Deutsche Bank. Fitch would also note that ZION continues to have an outsize exposure to commercial real estate (CRE). In Fitch's view, performance to date of these portfolios has been satisfactory. However, given that historically CRE losses have tended to lag an economic recovery, Fitch continues to view this exposure cautiously, particularly given ZION's exposure to some of the more troubled western state economies. Given the challenges detailed above, Fitch considers that ZION's ratings are comfortably situated at the current levels. Longer term, however, ZION's ratings could be positively impacted if it is able to work down its problem assets to sustainable levels, continue to deal with its CDO portfolio, eventually repay TARP, and improve core profitability through meaningful and measured loan growth. Moreover, this would need to occur against the backdrop of enhancing capital ratios to at least its peer group averages. With $51 billion in assets, ZION operates eight separately branded bank charters doing business in 10 western states. Fitch has affirmed the following ratings: Zions Bancorporation -- Long-term Issuer Default Rating (IDR) at 'BBB-'; -- Short-term IDR at 'F3'; -- Viability at 'bbb-'; -- Commercial paper at 'F3'; -- Senior unsecured debt at 'BBB-'; -- Subordinated debt at 'BB+'; -- Preferred stock to 'BB'; -- Individual at 'C'; -- FDIC guaranteed long-term debt at 'AAA'; -- FDIC guaranteed short-term debt at 'F1+'; -- Support at '5'; -- Support Floor at 'NF'. Zions First National Bank Amegy Bank, NA California Bank & Trust Nevada State Bank National Bank of Arizona Vectra Bank Colorado, NA The Commerce Bank of Oregon The Commerce Bank of Washington -- Long-term IDR at 'BBB-'; -- Long-term deposits at 'BBB'; -- Viability at 'bbb-' -- Short-term IDR at 'F3'. -- Individual at 'C'; -- Short-term deposits at 'F2'; -- Support at '5'; -- Support Floor at 'NF'. Zions Institutional Capital Trust A -- Preferred stock at 'BB'. The Rating Outlook is Stable. * U.S. Trustee Can't Conduct Nationwide Probe --------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that although the U.S. Trustee has the right to conduct an investigation into how a bank lender dealt with a bankrupt, the U.S. Trustee doesn't have the right to use a single bankruptcy case to investigate a bank's conduct with other borrowers, U.S. District Judge Robert C. Jones in Reno, Nevada, ruled on Dec. 7. Judge Jones concluded in his 10-page opinion that investigations under Rule 2004 of the Federal Rules of Bankruptcy Procedure are "limited to the debtor-creditor relationship." The rule, he said in reversing the bankruptcy court, "does not permit a party in interest to conduct a nationwide investigation into policies, procedures and conduct unrelated to the bankruptcy case at hand." The case is Bank of America NA v. Landis, 11-1338, U.S. Bankruptcy Court, District of Nevada (Reno). * Recent Small-Dollar & Individual Chapter 11 Filings ----------------------------------------------------- In Re 232 Second Holdings, LLC Bankr. D. N.J. Case No. 11-44018 Chapter 11 Petition filed November 29, 2011 See http://bankrupt.com/misc/njb11-44018.pdf represented by: Timothy P. Neumann, Esq. Broege, Neumann, Fischer & Shaver E-mail: tneumann@bnfsbankruptcy.com In Re 20-24 WALL STREET ASSOCIATES, LLC Bankr. E.D.N.Y. Case No. 11-50008 Chapter 11 Petition filed November 29, 2011 See http://bankrupt.com/misc/nyeb11-50008.pdf represented by: Edward E. Neiger, Esq. Neiger LLP E-mail: eneiger@neigerllp.com In Re Tash, Inc. Bankr. W.D. Okla. Case No. 11-16424 Chapter 11 Petition filed November 29, 2011 See http://bankrupt.com/misc/okwb11-16424.pdf represented by: Gary L. Morrissey, Esq. E-mail: g.morrissey@yahoo.com In Re J.E.D. Services, Inc. Bankr. W.D. Pa. Case No. 11-27201 Chapter 11 Petition filed November 29, 2011 See http://bankrupt.com/misc/pawb11-27201.pdf represented by: Jason J. Mazzei, Esq. Mazzei & Associates E-mail: ecf@debt-be-gone.com In Re FRALEX Corp. aka Alexfra Corp aka Text Zone Libreria Bankr. D. Puerto Rico Case No. 11-10185 Chapter 11 Petition filed November 29, 2011 See http://bankrupt.com/misc/prb11-10185.pdf represented by: Jacqueline Hernandez Santiago, Esq. E-mail: quiebras1@gmail.com In Re Alves Productions, Inc. Bankr. D. R.I. Case No. 11-14464 Chapter 11 Petition filed November 29, 2011 See http://bankrupt.com/misc/rib11-14464.pdf represented by: Peter J. Furness, Esq. Sinapi Formisano & Co E-mail: pjf@sfclaw.com In Re Tokyohana, Inc. dba Tokyohana Grill & Sushi Barw Bankr. S.D. Texas Case No. 11-39942 Chapter 11 Petition filed November 29, 2011 See http://bankrupt.com/misc/txsb11-39942.pdf represented by: Margaret Maxwell McClure, Esq. E-mail: margaret@mmmcclurelaw.com In Re Kerry Lynn London Enterprises LLC Bankr. W.D. Wash. Case No. 11-49257 Chapter 11 Petition filed November 29, 2011 See http://bankrupt.com/misc/wawb11-49257.pdf represented by: Jessica M. Jensen, Esq. Jessica Jensen Law, PS E-mail: jessica@jessicajensenlaw.com In Re Homematic On-Line Inc. Bankr. D. N.J. Case No. 11-44107 Chapter 11 Petition filed November 30, 2011 represented by: Nicholas Khoudary, Esq. E-mail: NKhoudary@aol.com In Re Preskel Specialty Foods Inc. aka Fratellis Market Place Bankr. E.D.N.Y. Case No. 11-50045 Chapter 11 Petition filed November 30, 2011 See http://bankrupt.com/misc/nyeb11-50045.pdf represented by: Nestor Rosado, Esq. Law Office of Nestor Rosado PC E-mail: neslaw2@msn.com In Re J & J Builder Contractor, Inc. Bankr. D. Puerto Rico Case No. 11-10235 Chapter 11 Petition filed November 30, 2011 See http://bankrupt.com/misc/prb11-10235.pdf represented by: Antonio I Hernandez Santiago, Esq. Antonio I Hernandez Santiago Law Of E-mail: ahernandezlaw@yahoo.com In Re Harbor Lights Development LLC Bankr. W.D. Wash. Case No. 11-23795 Chapter 11 Petition filed November 30, 2011 See http://bankrupt.com/misc/wawb11-23795.pdf represented by: Larry B. Feinstein, Esq. Vortman & Feinstein E-mail: feinstein2010@gmail.com In Re DIZ, L.L.C. dba D'Arcy McGee's Irish Restaurant and Pub Bankr. D. Ariz. Case No. 11-33020 Chapter 11 Petition filed December 1, 2011 See http://bankrupt.com/misc/azb11-33020.pdf represented by: Daniel P. Collins, Esq. Collins, May, Potenza, Baran & Gillespie E-mail: dcollins@cmpbglaw.com In Re Inspirations Group Home, LLC Bankr. D. Ariz. Case No. 11-33009 Chapter 11 Petition filed December 1, 2011 See http://bankrupt.com/misc/azb11-33009.pdf represented by: James Portman Webster, Esq. James Portman Webster, PLLC E-mail: jim@jpwlegal.com In Re Athena Gianakakos Bankr. C.D. Calif. Case No. 11-26534 Chapter 11 Petition filed December 1, 2011 In Re Emad & Katerina Moawad Dental Corporation dba Alegria Dental Center Bankr. C.D. Calif. Case No. 11-59290 Chapter 11 Petition filed December 1, 2011 See http://bankrupt.com/misc/cacb11-59290.pdf represented by: John D. Monte, Esq. E-mail: johnmontelaw@gmail.com In Re Erlinda Koo Bankr. C.D. Calif. Case No. 11-59180 Chapter 11 Petition filed December 1, 2011 In Re Gary Leavitt Bankr. C.D. Calif. Case No. 11-46514 Chapter 11 Petition filed December 1, 2011 In Re Leona Williams Bankr. C.D. Calif. Case No. 11-46513 Chapter 11 Petition filed December 1, 2011 In Re Gilberto Ledesma Bankr. S.D. Calif. Case No. 11-19597 Chapter 11 Petition filed December 1, 2011 In Re A.B.C. Landclearing and Development, LLC Bankr. M.D. Fla. Case No. 11-18041 Chapter 11 Petition filed December 1, 2011 See http://bankrupt.com/misc/flmb11-18041.pdf represented by: Michael A. Paasch, Esq. Mateer & Harbert PA E-mail: mpaasch@mateerharbert.com In Re Elias Yaman Bankr. M.D. Fla. Case No. 11-22147 Chapter 11 Petition filed December 1, 2011 In Re Terry Booker Bankr. N.D. Fla. Case No. 11-50631 Chapter 11 Petition filed December 1, 2011 In Re Gregory Elliott Bankr. N.D. Ill. Case No. 11-48511 Chapter 11 Petition filed December 1, 2011 In Re Midwest Direct Mailers, L.L.C. Bankr. N.D. Ill. Case No. 11-48614 Chapter 11 Petition filed December 1, 2011 See http://bankrupt.com/misc/ilnb11-48614.pdf represented by: Richard N Golding, Esq. The Golding Law Offices, P.C. E-mail: rgolding@goldinglaw.net In Re Sportsman's Hall, LLC dba Sportsman's Hall Roller Skating Rink Bankr. D. Md. Case No. 11-33527 Chapter 11 Petition filed December 1, 2011 See http://bankrupt.com/misc/mdb11-33527.pdf represented by: Edward M. Miller, Esq. Miller and Miller, LLP E-mail: mmllplawyers@verizon.net In Re Badran Investment, LLC Bankr. E.D. Mich. Case No. 11-70820 Chapter 11 Petition filed December 1, 2011 See http://bankrupt.com/misc/mieb11-70820.pdf represented by: Robert N. Bassel, Esq. E-mail: bbassel@gmail.com In Re East Holly Oil, Inc. Bankr. E.D. Mich. Case No. 11-70821 Chapter 11 Petition filed December 1, 2011 See http://bankrupt.com/misc/mieb11-70821.pdf represented by: Robert N. Bassel, Esq. E-mail: bbassel@gmail.com In Re S & V Investment, LLC Bankr. E.D. Mich. Case No. 11-70805 Chapter 11 Petition filed December 1, 2011 See http://bankrupt.com/misc/mieb11-70805p.pdf See http://bankrupt.com/misc/mieb11-70805c.pdf represented by: Michael A. Greiner, Esq. Financial Law Group, P.C. E-mail: mike@financiallawgroup.com In Re Anthony Desmoni Bankr. D. Nev. Case No. 11-28643 Chapter 11 Petition filed December 1, 2011 In Re Jacques Magloire Bankr. D. N.J. Case No. 11-44469 Chapter 11 Petition filed December 1, 2011 In Re 656 Myrtle Avenue Realty Corp. Bankr. E.D.N.Y. Case No. 11-50122 Chapter 11 Petition filed December 1, 2011 See http://bankrupt.com/misc/nyeb11-50122.pdf represented by: Barry N. Frank, Esq. Abraham Frank and Associates PC E-mail: abfra@optonline.net In Re Kathy & Tania, Inc. aka Kathy & Tanya, Inc. Bankr. E.D.N.Y. Case No. 11-50124 Chapter 11 Petition filed December 1, 2011 See http://bankrupt.com/misc/nyeb11-50124.pdf represented by: Barry N. Frank, Esq. Abraham Frank and Associates PC E-mail: abfra@optonline.net In Re Wanda Brooks Bankr. W.D. N.C. Case No. 11-11167 Chapter 11 Petition filed December 1, 2011 In Re Ruben Aponte-Negron Bankr. D. Puerto Rico Case No. 11-10371 Chapter 11 Petition filed December 1, 2011 In Re 441 Express, LLC Bankr. W.D. Tenn. Case No. 11-13613 Chapter 11 Petition filed December 1, 2011 See http://bankrupt.com/misc/tnwb11-13613.pdf represented by: Michael T. Tabor, Esq. Regional Bankruptcy Center of SE PA E-mail: marissav@bellsouth.net In Re Lawrence Mealer Bankr. N.D. Texas Case No. 11-37520 Chapter 11 Petition filed December 1, 2011 In Re Resolution Systems, Inc. Bankr. D. Utah Case No. 11-37085 Chapter 11 Petition filed December 1, 2011 filed pro se In Re Cambridge Development LLC Bankr. S.D. W.Va. Case No. 11-30737 Chapter 11 Petition filed December 1, 2011 See http://bankrupt.com/misc/wvsb11-30737.pdf represented by: Joe M. Supple, Esq. Seifert Law Office E-mail: supplelawoffice@yahoo.com In Re Prospect Street Homes LLC Bankr. W.D. Wash. Case No. 11-23903 Chapter 11 Petition filed December 1, 2011 See http://bankrupt.com/misc/wawb11-23903.pdf represented by: Sten E. Sorby, Esq. Law Office of Sten E. Sorby E-mail: sten@stensorbylaw.com In Re Glen Curtis, Inc. Bankr. D. Ariz. Case No. 11-33109 Chapter 11 Petition filed December 2, 2011 See http://bankrupt.com/misc/azb11-33109.pdf represented by: Scott H. Gan, Esq. Mesch, Clark & Rothschild, P.C. E-mail: ecfbk@mcrazlaw.com In Re Glen Curtis Development, Inc. Bankr. D. Ariz. Case No. 11-33112 Chapter 11 Petition filed December 2, 2011 See http://bankrupt.com/misc/azb11-33112.pdf represented by: Scott H. Gan, Esq. Mesch, Clark & Rothschild, P.C. E-mail: ecfbk@mcrazlaw.com In Re John Cork Bankr. D. Ariz. Case No. 11-33110 Chapter 11 Petition filed December 2, 2011 In Re Melvin Roberts Bankr. D. Ariz. Case No. 11-33100 Chapter 11 Petition filed December 2, 2011 In Re Tim Bean Bankr. W.D. Ark. Case No. 11-75310 Chapter 11 Petition filed December 2, 2011 In Re Clutchnet Corporation Bankr. C.D. Calif. Case No. 11-59339 Chapter 11 Petition filed December 2, 2011 See http://bankrupt.com/misc/cacb11-59339.pdf represented by: William G. Cort, Esq. E-mail: williamcortcsc@gmail.com In Re Korinth Enterprises Incorporated Bankr. C.D. Calif. Case No. 11-23918 Chapter 11 Petition filed December 2, 2011 See http://bankrupt.com/misc/cacb11-23918.pdf represented by: R Grace Rodriguez, Esq. E-mail: ecf@lorgr.com In Re Pamela McDonald Bankr. C.D. Calif. Case No. 11-26564 Chapter 11 Petition filed December 2, 2011 In Re Steve Zarougian Bankr. C.D. Calif. Case No. 11-59298 Chapter 11 Petition filed December 2, 2011 In Re Dominic DePalma Bankr. E.D. Calif. Case No. 11-94146 Chapter 11 Petition filed December 2, 2011 In Re Julie Yarbrough-Langford Bankr. N.D. Calif. Case No. 11-72693 Chapter 11 Petition filed December 2, 2011 In Re Maria Tolosa-Sison Bankr. N.D. Calif. Case No. 11-34331 Chapter 11 Petition filed December 2, 2011 In Re Reynaldo Guinto Bankr. N.D. Calif. Case No. 11-72672 Chapter 11 Petition filed December 2, 2011 In Re Robert Alarcon Bankr. N.D. Calif. Case No. 11-61100 Chapter 11 Petition filed December 2, 2011 In Re Taikun Investments, Inc. dba Vine Cottage Bankr. S.D. Calif. Case No. 11-19638 Chapter 11 Petition filed December 2, 2011 See http://bankrupt.com/misc/casb11-19638.pdf represented by: Quintin G. Shammam, Esq. E-mail: Quintin@shammamlaw.com In Re Richard Haisfield Bankr. M.D. Fla. Case No. 11-08765 Chapter 11 Petition filed December 2, 2011 In Re Sunrise Royal Plaza LLC Bankr. S.D. Fla. Case No. 11-43290 Chapter 11 Petition filed December 2, 2011 See http://bankrupt.com/misc/flsb11-43290.pdf represented by: Joel M. Aresty, Esq. Mateer & Harbert PA E-mail: aresty@mac.com In Re Jain Properties LLC Bankr. N.D. Ga. Case No. 11-84320 Chapter 11 Petition filed December 2, 2011 filed pro se In Re LaBruzzo Enterprises, LLC Bankr. N.D. Ga. Case No. 11-13956 Chapter 11 Petition filed December 2, 2011 See http://bankrupt.com/misc/ganb11-13956.pdf represented by: H. Matthew Horne, Esq. Rosenzweig, Jones, Horne & Griffis, P.C. E-mail: matt@newnanlaw.com In Re Pine Forest Associates, LP Bankr. N.D. Ga. Case No. 11-44019 Chapter 11 Petition filed December 2, 2011 filed pro se In Re Thankful Missionary Baptist Church Bankr. S.D. Ga. Case No. 11-12432 Chapter 11 Petition filed December 2, 2011 See http://bankrupt.com/misc/gasb11-12432.pdf represented by: Evita A. Paschall, Esq. E-mail: fopaschall@paschallpc.com In Re Robin Melancon Bankr. M.D. La. Case No. 11-11888 Chapter 11 Petition filed December 2, 2011 In Re HPCH, LLC Bankr. D. Nev. Case No. 11-28681 Chapter 11 Petition filed December 2, 2011 See http://bankrupt.com/misc/nvb11-28681p.pdf See http://bankrupt.com/misc/nvb11-28681c.pdf represented by: P Sterling Kerr, Esq. Law Offices Of P. Sterling Kerr E-mail: psklaw@aol.com In Re Kaveh Ghafouria Bankr. D. Nev. Case No. 11-28668 Chapter 11 Petition filed December 2, 2011 In Re Total Touch-Up, Inc. Bankr. D. Nev. Case No. 11-53698 Chapter 11 Petition filed December 2, 2011 filed pro se In Re Christopher Street, L.P. dba 50 Christopher Street, L.P. Bankr. D. N.J. Case No. 11-44630 Chapter 11 Petition filed December 2, 2011 See http://bankrupt.com/misc/njb11-44630.pdf represented by: John F. Bracaglia, Jr., Esq. Cohn, Bracaglia & Gropper E-mail: lbrokaw@cbglawyers.com In Re Dingman Data Systems, Ltd. Bankr. E.D.N.Y. Case No. 11-78457 Chapter 11 Petition filed December 2, 2011 See http://bankrupt.com/misc/nyeb11-78457.pdf represented by: Daniel W Nieroda, Jr., Esq. Nieroda & Nieroda, P.C. E-mail: nycounsl@optonline.net In Re 6 North Street Corp. Bankr. S.D.N.Y. Case No. 11-24356 Chapter 11 Petition filed December 2, 2011 See http://bankrupt.com/misc/nysb11-24356.pdf represented by: Marc A. Pergament, Esq. Weinberg, Gross & Pergament, LLP E-mail: mpergament@wgplaw.com In Re Amos Green Optics, Inc. Bankr. E.D. Pa. Case No. 11-19225 Chapter 11 Petition filed December 2, 2011 See http://bankrupt.com/misc/paeb11-19225p.pdf See http://bankrupt.com/misc/paeb11-19225c.pdf represented by: Roger V. Ashodian, Esq. Regional Bankruptcy Center of SE PA E-mail: rashodian@schollashodian.com In Re Gonzalo Quesada Franco Bankr. D. Puerto Rico Case No. 11-10403 Chapter 11 Petition filed December 2, 2011 In Re Jackie Giddy Bankr. E.D. Tenn. Case No. 11-16670 Chapter 11 Petition filed December 2, 2011 In Re Dalene White Bankr. W.D. Texas Case No. 11-54140 Chapter 11 Petition filed December 2, 2011 In Re Rulon Huntsman Bankr. D. Utah Case No. 11-37153 Chapter 11 Petition filed December 2, 2011 In Re Steven Maynard Bankr. W.D. Wash. Case No. 11-23943 Chapter 11 Petition filed December 2, 2011 In Re Whitetail Woods, LLC Bankr. E.D. Wis. Case No. 11-37946 Chapter 11 Petition filed December 2, 2011 See http://bankrupt.com/misc/wieb11-37946.pdf represented by: Joseph W. Seifert, Esq. Seifert Law Office E-mail: seifert38@gmail.com In Re Walter Robinson Post No 450 The American Legion Bankr. W.D. Pa. Case No. 11-27318 Chapter 11 Petition filed December 3, 2011 See http://bankrupt.com/misc/pawb11-27318.pdf represented by: Stephen J. Jurman, Esq. E-mail: stephen@jurmanlaw.com In Re Jorge Olivera Bankr. W.D. Texas Case No. 11-32379 Chapter 11 Petition filed December 3, 2011 In Re Ahmer Syed Bankr. C.D. Calif. Case No. 11-59499 Chapter 11 Petition filed December 4, 2011 In Re Laarni Omingo Bankr. C.D. Calif. Case No. 11-26624 Chapter 11 Petition filed December 4, 2011 In Re Lester Park Bankr. D. Ariz. Case No. 11-33174 Chapter 11 Petition filed December 5, 2011 In Re Joseph Mackay Bankr. C.D. Calif. Case No. 11-26637 Chapter 11 Petition filed December 5, 2011 In Re Warren Gerosa Bankr. C.D. Calif. Case No. 11-59639 Chapter 11 Petition filed December 5, 2011 In Re Victor Galvan Bankr. N.D. Calif. Case No. 11-72728 Chapter 11 Petition filed December 5, 2011 In Re Miller & Son Personal Care Home, Inc. Bankr. M.D. Ga. Case No. 11-53863 Chapter 11 Petition filed December 5, 2011 See http://bankrupt.com/misc/gamb11-53863.pdf represented by: Austin E. Carter, Esq. Stone and Baxter, LLP E-mail: acarter@stoneandbaxter.com In Re Stephen Putnal Bankr. M.D. Ga. Case No. 11-53874 Chapter 11 Petition filed December 5, 2011 In Re 2939 Snapfinger Road, LLC Bankr. N.D. Ga. Case No. 11-84651 Chapter 11 Petition filed December 5, 2011 See http://bankrupt.com/misc/ganb11-84651.pdf represented by: Martha A. Miller, Esq. Martha A. Miller, P.C. E-mail: mmiller@rbspg.com In Re Annie Webb Bankr. N.D. Ga. Case No. 11-84898 Chapter 11 Petition filed December 5, 2011 In Re Big Beast Transit Inc. Bankr. N.D. Ga. Case No. 11-84677 Chapter 11 Petition filed December 5, 2011 See http://bankrupt.com/misc/ganb11-84677.pdf represented by: Dorna Jenkins Taylor, Esq. Taylor & Associates, LLC E-mail: dorna.taylor@taylorattorneys.com In Re Jerry Nicholson Bankr. N.D. Ga. Case No. 11-24980 Chapter 11 Petition filed December 5, 2011 In Re Kevin Kenerly Bankr. N.D. Ga. Case No. 11-84731 Chapter 11 Petition filed December 5, 2011 In Re The Global Empowerment Center, Inc. fdba Victory House Evangelistic Temple Bankr. N.D. Ga. Case No. 11-84934 Chapter 11 Petition filed December 5, 2011 filed pro se In Re Young Hong Bankr. N.D. Ga. Case No. 11-84991 Chapter 11 Petition filed December 5, 2011 In Re Felice Romanzi Bankr. N.D. Ill. Case No. 11-48822 Chapter 11 Petition filed December 5, 2011 In Re Randy Corbin Bankr. N.D. Ill. Case No. 11-48948 Chapter 11 Petition filed December 5, 2011 In Re Steven Block Bankr. W.D. Ky. Case No. 11-35812 Chapter 11 Petition filed December 5, 2011 In Re Carlos Gutierrez Bankr. D. Mass. Case No. 11-45043 Chapter 11 Petition filed December 5, 2011 In Re Internaltional Business Solutions & Development, LLC Bankr. D. Mass. Case No. 11-21305 Chapter 11 Petition filed December 5, 2011 See http://bankrupt.com/misc/mab11-21305.pdf represented by: Laird J. Heal, Esq. E-mail: lairdheal@lh-law-office.com In Re Radiance Medspa Richmar Plaza, Limited Liability Company Bankr. D. Nev. Case No. 11-28713 Chapter 11 Petition filed December 5, 2011 See http://bankrupt.com/misc/nvb11-28713.pdf represented by: Steven J. Szostek, Esq. E-mail: szostek@cox.net In Re 1206-1208 East Grand Street Corp. Bankr. D. N.J. Case No. 11-44761 Chapter 11 Petition filed December 5, 2011 See http://bankrupt.com/misc/njb11-44761.pdf represented by: Antonio R. Espinosa, Esq. Andril & Espinosa, LLC E-mail: andrilespinosa@aol.com In Re Irma Alvarez Bankr. D. N.J. Case No. 11-44743 Chapter 11 Petition filed December 5, 2011 In Re Laurie Munn Bankr. E.D.N.Y. Case No. 11-78529 Chapter 11 Petition filed December 5, 2011 In Re Dinorah Torres Bankr. S.D.N.Y. Case No. 11-15618 Chapter 11 Petition filed December 5, 2011 In Re James Snider Bankr. M.D. Tenn. Case No. 11-12052 Chapter 11 Petition filed December 5, 2011 In Re Highway 82 / Fannin Joint Venture Bankr. E.D. Texas Case No. 11-43658 Chapter 11 Petition filed December 5, 2011 See http://bankrupt.com/misc/txeb11-43658.pdf represented by: Dennis Olson, Esq. E-mail: denniso@dallas-law.com In Re Billboard Services, Inc. Bankr. N.D. Texas Case No. 11-37712 Chapter 11 Petition filed December 5, 2011 filed pro se In Re Holy Tabernacle Church International, Inc. dba Holy Tabernacle Church International Bankr. N.D. Texas Case No. 11-37699 Chapter 11 Petition filed December 5, 2011 See http://bankrupt.com/misc/txnb11-37699.pdf represented by: Marilyn D. Garner, Esq. Law Offices of Marilyn D. Garner E-mail: mgarner@marilyndgarner.net In Re McCowan-Johnson Mansion Bankr. N.D. Texas Case No. 11-37715 Chapter 11 Petition filed December 5, 2011 filed pro se In Re Randal Manus Bankr. N.D. Texas Case No. 11-46823 Chapter 11 Petition filed December 5, 2011 In Re Tony Pham Bankr. N.D. Texas Case No. 11-37696 Chapter 11 Petition filed December 5, 2011 In Re Uyoma III, LLC Bankr. N.D. Texas Case No. 11-37725 Chapter 11 Petition filed December 5, 2011 See http://bankrupt.com/misc/txnb11-37725.pdf represented by: Eric A. Liepins, Esq. Eric A. Liepins, P.C. E-mail: eric@ealpc.com In Re Cesar Rodriguez Bankr. S.D. Texas Case No. 11-40244 Chapter 11 Petition filed December 5, 2011 In Re Community Chapels of Houston, Inc. dba Community Chapel Funeral Home Bankr. S.D. Texas Case No. 11-40308 Chapter 11 Petition filed December 5, 2011 filed pro se In Re Guillermo Rojano Bankr. S.D. Texas Case No. 11-70825 Chapter 11 Petition filed December 5, 2011 In Re JCP Properties, LTD Bankr. S.D. Texas Case No. 11-70827 Chapter 11 Petition filed December 5, 2011 See http://bankrupt.com/misc/txsb11-70827.pdf represented by: Antonio Villeda, Esq. E-mail: avilleda@mybusinesslawyer.net In Re Jesus Tavarez Bankr. S.D. Texas Case No. 11-40345 Chapter 11 Petition filed December 5, 2011 In Re Jorge Rojano Bankr. S.D. Texas Case No. 11-70828 Chapter 11 Petition filed December 5, 2011 In Re The Jarvis Adventure Building LLC dba The Jarvis Adventure Inc. Bankr. S.D. Texas Case No. 11-40231 Chapter 11 Petition filed December 5, 2011 filed pro se In Re The Jarvis Adventure Inc. John D Jarvis Bankr. S.D. Texas Case No. 11-40236 Chapter 11 Petition filed December 5, 2011 filed pro se In Re George Eastes Mary Eastes Bankr. W.D. Texas Case No. 11-12964 Chapter 11 Petition filed December 5, 2011 In Re Ludgate Investments, Inc. Bankr. W.D. Texas Case No. 11-32402 Chapter 11 Petition filed December 5, 2011 See http://bankrupt.com/misc/txwb11-32402.pdf represented by: Omar Maynez, Esq. Watson & Maynez, P.C. E-mail: watsonandmaynez@gmail.com In Re Robert Harbison Cynthia Harbison Bankr. W.D. Texas Case No. 11-12976 Chapter 11 Petition filed December 5, 2011 In Re Shiloh Family Medicine, PC Bankr. E.D. Va. Case No. 11-18674 Chapter 11 Petition filed December 5, 2011 See http://bankrupt.com/misc/vaeb11-18674.pdf represented by: Dawn C. Stewart, Esq. The Stewart Law Firm, PLLC E-mail: dstewart@thestewartlawfirm.com In Re D&J Towing LLC Bankr. W.D. Wis. Case No. 11-17301 Chapter 11 Petition filed December 5, 2011 See http://bankrupt.com/misc/wiwb11-17301.pdf represented by: David R. Westrick, Esq. The Stewart Law Firm, PLLC E-mail: jane@rogerswestricklawoffice.com In Re Richard Eberle Bankr. W.D. Wis. Case No. 11-17297 Chapter 11 Petition filed December 5, 2011 In Re Neal Jones Bankr. D. Ariz. Case No. 11-33313 Chapter 11 Petition filed December 6, 2011 In Re William Berry Bankr. E.D. Ark. Case No. 11-17744 Chapter 11 Petition filed December 6, 2011 In Re Carolyn Cooper Bankr. C.D. Calif. Case No. 11-59672 Chapter 11 Petition filed December 6, 2011 In Re Mehrdad Safari Bankr. C.D. Calif. Case No. 11-26743 Chapter 11 Petition filed December 6, 2011 In Re Samuel Esworthy Bankr. C.D. Calif. Case No. 11-24042 Chapter 11 Petition filed December 6, 2011 In Re DBN, LLC dba Daybreak Nurseries Bankr. D. Conn. Case No. 11-52414 Chapter 11 Petition filed December 6, 2011 See http://bankrupt.com/misc/ctb11-52414.pdf represented by: Stephen P. Wright, Esq. Harlow, Adams, and Friedman E-mail: spw@quidproquo.com In Re Jeff Sage Bankr. M.D. Fla. Case No. 11-08833 Chapter 11 Petition filed December 6, 2011 In Re I.B. Logging, Inc. Bankr. M.D. Fla. Case No. 11-08827 Chapter 11 Petition filed December 6, 2011 See http://bankrupt.com/misc/flmb11-08827.pdf represented by: Nancy A Draughon, Esq. Law Office of Nancy Akel Draughon, P.A. E-mail: court@northfloridabankruptcy.com In Re Daniel Bernard Bankr. S.D. Fla. Case No. 11-43508 Chapter 11 Petition filed December 6, 2011 In Re 219 Panola Rd & 180 Middleton Dr. Land Trust Bankr. N.D. Ga. Case No. 11-85148 Chapter 11 Petition filed December 6, 2011 filed pro se In Re 2701 Hedgerow Drive, NE, Marietta, GA 30066 Land Trust Bankr. N.D. Ga. Case No. 11-85159 Chapter 11 Petition filed December 6, 2011 filed pro se In Re 3675 Charlotte Drive Land Trust Bankr. N.D. Ga. Case No. 11-85224 Chapter 11 Petition filed December 6, 2011 filed pro se In Re Mamadou Sylla Bankr. N.D. Ga. Case No. 11-85181 Chapter 11 Petition filed December 6, 2011 In Re Realty Mortgage Investments LLC Bankr. N.D. Ga. Case No. 11-85090 Chapter 11 Petition filed December 6, 2011 See http://bankrupt.com/misc/ganb11-85090.pdf represented by: Philip Estes Johns, Esq. Johns & Johns, LLC E-mail: johnslaw@comcast.net In Re Hustead Dental Associates, P.A. aka Hustead Dental and Orthodontic Associates, P.A. Bankr. D. Md. Case No. 11-33774 Chapter 11 Petition filed December 6, 2011 See http://bankrupt.com/misc/mdb11-33774.pdf represented by: James Greenan, Esq. McNamee, Hosea, et. al. E-mail: jgreenan@mhlawyers.com In Re Patrick Hoyte JoAnn Kennedy-Hoyte Bankr. D. Md. Case No. 11-33780 Chapter 11 Petition filed December 6, 2011 In Re Avery Goldberg Bankr. E.D.N.Y. Case No. 11-78533 Chapter 11 Petition filed December 6, 2011 In Re San Sebastian X Ray Corp. Bankr. D. Puerto Rico Case No. 11-10441 Chapter 11 Petition filed December 6, 2011 See http://bankrupt.com/misc/prb11-10441.pdf represented by: Gloria M. Justiniano Irizarry, Esq. Justiniano's Law Office E-mail: gloriae55amg@yahoo.com In Re Sorento Homes, Inc. aka Sorento Construction & Development Bankr. S.D. Texas Case No. 11-40402 Chapter 11 Petition filed December 6, 2011 See http://bankrupt.com/misc/txsb11-40402.pdf represented by: Calvin C. Braun, Esq. Orlando & Braun LLP E-mail: calvinbraun@orlandobraun.com In Re B-Town Burgers LLC Bankr. W.D. Wash. Case No. 11-24038 Chapter 11 Petition filed December 6, 2011 filed pro se In Re Storkersen Inc. aka Tor Storkersen Bankr. W.D. Wash. Case No. 11-24050 Chapter 11 Petition filed December 6, 2011 filed pro se In Re Timothy Cummings Bankr. W.D. Wis. Case No. 11-17330 Chapter 11 Petition filed December 6, 2011 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers" public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors" Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2011. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***