/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/120223.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, February 23, 2012, Vol. 16, No. 53 Headlines 3POWER ENERGY: Incurs $865,000 Net Loss in Fiscal 3rd Quarter 261 EAST 78: Taps Georgoulis as Counsel to Object to MBF Claim 4KIDS ENTERTAINMENT: Nanthala Capital Owns 5.796% of Common Stock ALROSE KING: Liquidating Plan Disclosures Hearing on March 15 AMBAC FINANCIAL: AAC Postpones Hearing on Suit vs. Hercules AMERICAN AIRLINES: Opposes Plea to Dismiss Chapter 11 Case AMERICAN AIRLINES: Rothschild as Advisor Has Interim Order AMERICAN AIRLINES: Interim Order on Perella Hiring Entered AMERICAN AIRLINES: Morgan Application Has Hearing Feb. 29 AMERICAN AIRLINES: Objections to McKinsey Hiring Due Feb. 24 AMERICAN AIRLINES: SkyWorks as Aircraft Advisor Has Interim Order ARCHSTONE APARTMENTS: Zell's Equity Raises Bid to $1.5-Bil. AXESSTEL INC: Has $1.1-Mil. Profit; But Going Concern Doubt Raised BANKS HOLDING: RBC Fails in Bid to Dismiss or Convert Case BERTHEL GROWTH: Court Orders Termination of SBIC Receivership BOZEL S.A.: Plan of Liquidation Declared Effective B.R.H. CONSULTANTS: Case Summary & 18 Largest Unsecured Creditors BURBANK LANDING: Case Summary & 18 Largest Unsecured Creditors CABI SMA: Can Incur $700,000 Unsecured Financing from Affiliates CABI SMA: Plan Confirmation Hearing Scheduled for April 4 CABRINI MEDICAL: Doctors' Summary Judgment Motions Denied CARBON RESOURCES: Court Dismisses Chapter 11 Case CAUCEDO INVESTMENTS: Fitch Withdraws 'BB-' Rating on Sr. Notes CDC CORP: CDC Software Sale Set for March 16 Auction CELL THERAPEUTICS: EMA Issues Positive Opinion on Pixuvri CLEAR CHANNEL: Cuts Net Loss to $302.1 Million in 2011 COATES INTERNATIONAL: Hires ATG as Investor Relations Firm CONVERTED ORGANICS: Board OKs 1-for-500 Reverse Stock Split CHURCH STREET: Case Summary & 20 Largest Unsecured Creditors CUI GLOBAL: Effects 1-for-30 Reverse Common Stock Split DESERT GARDENS: NAI Horizon and Dan A. Paulus OK'd as Appraisers DESERT GARDENS: Has Until April 30 to Access Cash Collateral DJSP ENTERPRISES: DAL Group Amends Forbearance Pact with BA Note DOE MOUNTAIN INVESTMENTS: Creditors Plan Outline Hearing Feb. 28 DYNEGY INC: Altai Capital Discloses 5.1% Equity Stake EASTMAN KODAK: Application to Tap Linklaters as Foreign Counsel EASTMAN KODAK: Wins Approval for KCC as Administrative Agent EASTMAN KODAK: Creditors Committee Has Milbank as Lead Counsel EASTMAN KODAK: Wins Nod to Reject Kodak Theatre Sponsorship EDIETS.COM INC: Appoints Thomas Connerty as President and CEO ELEPHANT & CASTLE: Wants to Employ Verdolino & Lowey as Accountant ENER1 INC: Has Final OK to Obtain $20MM DIP Facility From Bzinfin ENERGY CONVERSION: March 14 Hearing on Cash Collateral Use ENERGY CONVERSION: Taps Honigman Miller as Bankruptcy Counsel ENERGY CONVERSION: Covington & Burling Tapped as Special Counsel ENERGY CONVERSION: Hires Kurtzman Carson as Claims Agent ENERGY CONVERSION: Wants Schedules Filing Deadline Extended ENERGY CONVERSION: Will Not File Form 10-Q for Dec. 31 Quarter ENERGY CONVERSION: Will Not Appeal Delisting Notice from Nasdaq ENERGY FUTURE: Incurs $1.9 Billion Net Loss in 2011 EPIC ENERGY: Whitebox Advisors Owns 35% of Epic Capital Common EVERGREEN ENERGY: Libra Advisors Owns 12.1% of Common Stock FILENE'S BASEMENT: Creditors Committee Taps Abacus as Advisor FILENE'S BASEMENT: Taps Cushman & Wakefield Real Estate Advisor FILENE'S BASEMENT: Equity Committee Taps Houlihan as Advisor FILENE'S BASEMENT: Can Employ Rothschild as Financial Advisor FIRST DATA: Seeks to Amend Senior Credit Facilities FOREVER CONSTRUCTION: Plan Outline Hearing Continued to March 22 GAME TRADING: Todd Hayes Resigns as President and CEO GOLDEN TEMPLE: Case Summary & 11 Largest Unsecured Creditors GENERAL MARITIME: Committee Objects to Oaktree Releases in Plan GREENMAN TECHNOLOGIES: Incurs $1.1-Mil. Net Loss in Dec. 31 Qtr. GREENMAN TECHNOLOGIES: Incurs $6.8-Mil. Net Loss in Fiscal 2011 GRUBB & ELLIS: Meeting to Form Creditors' Panel on Feb. 24 GRUBB & ELLIS: Case Summary & 50 Largest Unsecured Creditors GSC GROUP: Judge Formally Approves Black Diamond's Plan HAMPTON ROADS: Douglas Glenn Appointed President and CEO HCA HOLDINGS: Thomas Frist Discloses 62.2% Equity Stake HEARUSA INC: Projects $39.7 Million for Common Stockholders HEIDTMAN MINING: Court Orders Dismissal of Bankruptcy Case HOSTESS BRANDS: Rivals Oppose Ending Ties to Pension Funds IDEARC INC: High Court Declines to Hear Investors' Ch. 11 Appeal IMAGEWARE SYSTEMS: Patterson McBaine Holds 14.7% Equity Stake IMAGEWARE SYSTEMS: Patterson McBaine Discloses 14.7% Equity Stake INNER CITY: Judge Approves $180-Mil. Sale Over US Objection INTEGRATED FREIGHT: Seaside 88 Discloses 9.9% Equity Stake J.C. PENNNY: Fitch Lowers Issuer Default Rating to 'BB+' KINGBURY CORP: Wants to Hire GA Keen as Real Estate Advisor KM ASSOCIATES: Hires Gianola Barnum as Bankruptcy Counsel KM ASSOCIATES: Taps CFO Strategies for Accounting Services KM ASSOCIATES: Cash Access Facing Challenge from Banks LEE ENTERPRISES: Regains Compliance With NYSE Share Price Standard LEHMAN BROTHERS: U.S. Bank Opposes Claim Transfer LEHMAN BROTHERS: HSBC Bank to Return $52-Mil. to Debtor LEHMAN BROTHERS: Asks 2nd Cir. to Block Intervention in Dante Case LEHMAN BROTHERS: Dist. Judge Sends Suit vs. Fund to State Court LEHMAN BROTHERS: Principal Life Wants to Set Off $13.6-Mil. LEHMAN BROTHERS: Seeks to Block Ex-Employee's Affirmative Claims LEHMAN BROTHERS: LBI Lease Decision Period Expires June 4 LEHR CONSTRUCTION: Trustee Taps Solomon for N.J. Litigation LYMAN LUMBER: Obtains Court OK to Hire Eau Claire as Realtor MARC BARNES: Response to Claim Objection Waives Service Defect MEDICAL INTERNATIONAL: Incurs $235,000 Net Loss in Dec. 31 Qtr. MF GLOBAL: Ch. 11 Trustee Asks for March Extension of Schedules MF GLOBAL: Outten & Golden Named Counsel in Warn Class Suit MG GLOBAL: Status Report on Physical Assets Raises Questions MF GLOBAL: Ch. 11 Trustee Proposes Morrison Foerster as Counsel MF GLOBAL: Ch. 11 Trustee Proposes Kasowitz as Conflicts Counsel MF GLOBAL: Ch. 11 Trustee Proposes Pepper Hamilton as Tax Counsel MFJT LLC: Hearing on Case Dismissal Continued Until March 16 MFJT LLC: Plan Outline Hearing Continued until March 16 MGM RESORTS: CityCenter Closes $240MM Sr. Secured Notes Offering MID MICHIGAN CRUSHING: Files Schedules of Assets and Liabilities MOHEGAN TRIBAL: Amends Employment Pacts with Presidents and CEOs MOHEGAN TRIBAL: Early Tender Offer Period Expires MPG OFFICE: Inks Letter Agreement with Christopher Norton MT. VERMONT: Auction for Baltimore City Property Today MW GROUP: Can Use BOA Cash Collateral on a Final Basis NATIVE WHOLESALE: Violi Firm OK'd on Regulatory Compliance Matters NATIVE WHOLESALE: Taps Eberle Berlin to Handle Idaho Actions NAVISTAR INTERNATIONAL: Stockholders OK Board Declassification NEBRASKA BOOK: Posts $18.7 Million Net Loss in Fiscal 3rd Quarter NEDAK ETHANOL: TNDK Holds 34.2% of Common Membership Units NEUROLOGIX INC: Hires GRP Inc. as Financial Advisor NEW ENGLAND BUILDING: Hearing Today on Cash Collateral Use NEW ENGLAND BUILDING: Sec. 341 Creditors Meeting on March 20 NEW ENGLAND BUILDING: Taps Pierce Atwood as Special Counsel NEW ENGLAND BUILDING: Hires Windsor Assoc. as Financial Advisors NEWPAGE CORP: Meets Unified Opposition to New Bonus Program NEXTWAVE WIRELESS: Solus Alternative Holds 9.9% Equity Stake OILSANDS QUEST: To Pay Bonuses to Keep Execs. While Under CCAA OILSANDS QUEST: Gets Court OK for C$3.75-Mil. DIP Financing ORLEANS HOMEBUILDERS: Dimensional Ceases to Hold 5% Equity Stake OVERLAND STORAGE: Amends 5 Million Common Stock Prospectus OVERLAND STORAGE: Jon Gruber Discloses 7.3% Equity Stake PHILADELPHIA ORCHESTRA: Wants Plan Filing Exclusivity Until May 11 PINNACLE AIRLINES: FMR LLC Discloses 14.6% Equity Stake PINNACLE AIRLINES: Wayne King Discloses 3.2% Equity Stake QUALTEQ INC: BofA Wins Bid to Transfer Case Venue to Chicago RANCHER ENERGY: Posts $334,400 Net Loss in Dec. 31 Quarter ROSELAND VILLAGE: Plan Outline Hearing Continued Until March 6 SEAHAWK DRILLING: Chilton Investment Ceases to Own Common Stock SEAHAWK DRILLING: Lonestar Capital Ceases to Own Common Stock SNOKIST GROWERS: Signs $42.5 Million Sale to Truitt Brothers STANFORD FINANCIAL: SIPC Opposes Taking Over Ponzi Liquidation T3 MOTION: Bruce Nelson Named Independent Director TANNIN, INC.: Case Summary & 8 Largest Unsecured Creditors TRIAD GUARANTY: Incurs $60.9 Million Net Loss in Dec. 31 Qtr. TRIBUNE CO: Has Paid $230.7-Mil. to Advisors in Bankruptcy TRIBUNE CO: Hearing on Supplemental Disclosures on March 23 TRIBUNE CO: Parties File Brief on Allocation Disputes UNISYS CORP: Fairpointe Capital Discloses 10.27% Equity Stake VEGAS INC: Files Schedules of Assets and Liabilities WASTE2ENERGY HOLDINGS: Chapter 11 Trustee Taps Foreign Counsel WASTE2ENERGY HOLDINGS: Cole Schotz OK'd as Ch.11 Trustee's Counsel WESTLAND PARCEL: Withdraws 7th Stipulation for Cash Collateral Use WINCOPIA FARMS: Has Until March 16 to Challenge Dismissal Bid WJO INC: Hearing on Continued Access to Cash Set for Feb. 29 WJO INC: Re-engages Ciardi Ciardi as Reorganization Counsel WPCS INTERNATIONAL: First Wilshire Discloses 6.6% Equity Stake YELLOWSTONE MOUNTAIN: 9th Cir. Affirms Rejection of Membership * Moody's: Liquidity Stress Index Nears Record-Low * Recent Small-Dollar & Individual Chapter 11 Filings ********* 3POWER ENERGY: Incurs $865,000 Net Loss in Fiscal 3rd Quarter ------------------------------------------------------------- 3Power Energy Group, Inc., filed with the U.S. Securities and Exchange Commission a Form 10-Q reporting a net loss of $864,793 on $0 of sales for the three months ended Dec. 31, 2011, compared with a net loss of $157,841 on $0 of sales for the same period during the prior year. The Company reported a net loss of $2.50 million on $491,092 of sales for the nine months ended Dec. 31, 2011, compared with net income of $183,360 on $3.55 million of sales for the same period a year ago. The Company's balance sheet at Dec. 31, 2011, showed $4.35 million in total assets, $3.35 million in total liabilities, all current, and $1 million in stockholders' equity. "The Company has incurred operating losses in the last two years, and that the Company is dependent upon the management's ability to develop profitable operations. These factors among others may raise substantial doubt about the Company's ability to continue as a going concern which may make it more difficult to obtain future financing," the Company said in the Form 10-Q. A full-text copy of the Form 10-Q is available for free at: http://is.gd/V2Fqv7 About 3Power Energy 3Power Energy Group Inc. was incorporated in Nevada in December 2002. On March 30, 2011, the Company changed its name from Prime Sun Power Inc. to 3Power Energy and increased its authorized share capital to 300,000,000 shares. The Company plans to pursue a business model producing renewable generated electrical power and other alternative energies. On May 13, 2011, the Company acquired 100% of the issued and outstanding common stock of Seawind Energy Limited, in exchange for the issuance of 40,000,000 restricted shares of the Company's common stock. The acquisition was accounted for as a reverse merger and, accordingly, the Company is the legal survivor and Seawind Energy is the accounting survivor. 261 EAST 78: Taps Georgoulis as Counsel to Object to MBF Claim -------------------------------------------------------------- 261 East 78 Realty Corp. seeks permission from the U.S. Bankruptcy Court for the Southern District of New York to employ Georgoulis & Associates, PLLC, as its litigation counsel for the purpose of objecting to MB Financial Bank N.A.'s claim and disputing its standing as a secured creditor. The Debtor's Chapter 11 filing was precipitated by the commencement of foreclosure proceedings on a real property located at 261 East 78th Street, New York, New York 10075. The Debtor has, at all times, disputed that its primary secured lender, MB Financial Bank, is the true owner or holder of the notes which formed the basis for its foreclosure proceeding and therefore, has no standing to file a claim in this court. The Debtor asserts it was never afforded an opportunity to argue this issue in State Court. On Feb. 9, 2012, MB Financial filed a proof of claim as a secured creditor in the amount of $17,674,827. Chris Georgoulis, Esq., began representing the Debtor in 2009. More significantly, he defended the Debtor in the State Court foreclosure proceeding for well over 2 years. The Debtor does not deem the fact that Mr. Georgoulis is an unsecured creditor in the Chapter 11 case to cause him to be conflicted. In fact, the Debtor maintains, the legal fees were incurred in defending the Debtor in a foreclosure proceeding brought by MB Financial. The Debtor will pay Georgoulis at its normal hourly rates of $475 per hour for Partners and $225 to $360 per hour for associates. To the best of the Debtor's knowledge, other than Mr. Georgoulis being an unsecured creditor in the case, Georgoulis does not represent or hold any interest adverse to the Debtor or its estate with respect to the matters on which it is going to be employed. About 261 East 261 East 78 Realty Corp. owns real property located at 261 East 78th Street, in New York. The premises consist of seven commercial units, three of which are currently occupied. 261 East 78 Realty filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 11-15624) on Dec. 6, 2011. Judge Robert E. Gerber presides over the case. The Chapter 11 filing was precipitated by the commencement of foreclosure proceedings on the premises. The Debtor scheduled $20,211,417 in assets and $18,757,664 in liabilities. The petition was signed by Lee Moncho, president. 4KIDS ENTERTAINMENT: Nanthala Capital Owns 5.796% of Common Stock ----------------------------------------------------------------- Nantahala Capital Management, LLC, discloses in a Schedule 13D/A filing that as of Feb. 15, 2012, it may be the beneficial owner of 719,315 shares representing 5.796% of the Common Stock of 4Kids Entertainment, Inc. A copy of the Schedule 13D/A is available for free at http://is.gd/X9c5hr About 4Kids Entertainment New York-based 4Kids Entertainment, Inc., dba 4Kids, is an entertainment and media company specializing in the youth oriented market, with operations in these business segments: (i) licensing, (ii) advertising and media broadcast, and (iii) television and film production/distribution. The parent entity, 4Kids Entertainment, was organized as a New York corporation in 1970. 4Kids filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code to protect its most valuable asset -- its rights under an exclusive license relating to the popular Yu-Gi-Oh! series of animated television programs -- from efforts by the licensor, a consortium of Japanese companies, to terminate the license and force 4Kids out of business. 4Kids and affiliates filed Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 11-11607) on April 6, 2011. Kaye Scholer LLP is the Debtors' restructuring counsel. Epiq Bankruptcy Solutions, LLC, is the Debtors' claims and notice agent. BDO Capital Advisors, LLC, is the financial advisor and investment banker. EisnerAmper LLP fka Eisner LLP serves as auditor and tax advisor. 4Kids Entertainment disclosed $78,397,971 in assets and $86,515,395 in liabilities as of the Chapter 11 filing. Hahn & Hessen LLP serves as counsel to the Official Committee of Unsecured Creditors. Epiq Bankruptcy Solutions LLC as its information agent for the Committee. The Consortium consists of TV Tokyo Corporation, which owns and operates a television station in Japan; ASATSU-DK Inc., a Japanese advertising company; and Nihon Ad Systems, ADK's wholly owned subsidiary. The Consortium is represented by Kyle C. Bisceglie, Esq., Michael S. Fox, Esq., Ellen V. Holloman, Esq., and Mason Barney, Esq., at Olshan Grundman Frome Rosenzweig & Wolosky LLP, in New York. In January 2012, the bankruptcy judge ruled in favor of 4Kids, deciding that the Yu-Gi-Oh! property license agreement between the Debtor and the licensor was not effectively terminated prior to the bankruptcy filing. The second phase of the trial to determine the damages payable to 4Kids Entertainment arising from the purported termination of the show's licensing agreement has not been scheduled but is expected to start as early as first quarter of 2012. In light of the Yu-Gi-Oh dispute, 4Kids in January sought and obtained an extension of the exclusive period to propose a Chapter 11 plan. ALROSE KING: Liquidating Plan Disclosures Hearing on March 15 ------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of New York will convene a hearing on March 15, 2012 at 10:00 a.m. to consider approval of the Disclosure Statement explaining the Chapter 11 plan of Alrose King David LLC. Objections to the adequacy of the information in the Disclosure Statement are due March 7, 2012. As reported in the Troubled Company Reporter on Nov. 10 2012, Alrose King David has filed a Chapter 1 Plan of Liquidation that contemplates the sale of the assets of the Debtor, excluding cash on hand and causes of action, at a public auction on a date no less than 30 days but no greater than 40 days following the Effective Date. The sale proceeds, if any, will be distributed by the Liquidation Trustee in accordance with the terms of the Plan. The funds to be utilized to make Cash payments under the Plan have been and/or will be generated from, among other things, (i) Cash on hand, (ii) the proceeds of the Sale, (iii) contributions by Alrose Allegria LLC due on the Effective Date towards the GUC Distribution Fund, (iii) contributions by Brooklyn Federal Savings Bank, N.A. (BFSB) towards the payment of Professional Fees Claims and, if deemed to be the Prevailing Bidder, the payment by BFSB in full of the Real Property Tax Claims, and (v) the proceeds of the liquidation of the remaining Estate Assets. Alrose Allegria LLC is an affiliate of the Debtor and the sponsor of the Plan. On the Sale Date, the (a) Debtor will cease all operations and (b) administration of the Plan will become the general responsibility of the Liquidation Trustee. Class Claim Status Voting Rights ----- ----- ------ ------------- 1 Real Property Tax Claims Unimpaired Deemed to Accept 2 Priority Tax Claims Unimpaired Deemed to Accept 3 BFSB Secured Claim Impaired Entitled to Vote 4 Other Secured Claims Impaired Entitled to Vote 5 General Unsecured Claims Impaired Entitled to Vote 6 Insider Unsecured Claims Impaired Entitled to Vote 7 Membership Interests Impaired Deemed to Reject The allowed BFSB Secured Claim in Class 3 will be paid the proceeds of the sale of the assets of the Debtor. To the extent that BFSB's Credit Bid, if any, is the Prevailing Bid for the Sale Assets, then BFSB will receive the Sale Assets in full and final satisfaction of the Allowed BFSB Secured Claim. Each Holder of an Allowed Other Secured Claims in Class 4 will be paid by the Liquidation Trustee the amount of his Allowed Other Secured Claim, in Cash, from the Distribution Fund, provided that in no event will the Holder of the Allowed Other Secured Claim receive more than the value of the Collateral securing his Claim. To the extent that the value of the Collateral securing any Allowed Other Secured Claim is less than the amount of the Claim, the undersecured portion will be deemed a Deficiency Claim and treated as a General Unsecured Claim in Class 5. After the payment of any Allowed, or reserving in full for all Disputed, Real Property Tax Claims, BFSB Secured Claim, Other Secured Claims, Administrative Claims, Professional Fee Claims, Priority Tax Claims and Priority Claims, each in accordance with the provisions of the Plan, each Holder of an Allowed Class 5 General Unsecured Claim will receive, in full and final satisfaction of its claims, its Pro Rata share of proceeds from the GUC Distribution Fund. With respect to an Allowed General Unsecured Claim of BFSB that is a Deficiency Claim, BFSB will be deemed to have waived its right to receive a distribution on such Deficiency Claim as of the Sale Date. As of the Effective Date, all issued and outstanding Membership Interests in Class 7 will be canceled and no consideration will be paid or delivered with respect thereto. A copy of the Debtor's Plan of Liquidation is available for free at http://bankrupt.com/misc/alroseking.dkt80.pdf About Alrose King Alrose King David LLC is a special entity established by the Alrose Group to own the 143-room, beachfront hotel property called the Allegria Hotel & Spa in Long Beach, Long Island. Alrose King David filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.Y. Case No. 11-75361) in Brooklyn on July 28, 2011. Judge Dorothy Eisenberg presides over the case. Patrick T. Collins, Esq., at Farrell Fritz, P.C., serves as bankruptcy counsel. The petition was signed by Allen Rosenberg, managing member. In its schedules, the Debtor disclosed $25,000,000 in assets and $38,616,617 in liabilities as of the Petition Date. The Official Consolidated Committee of Unsecured Creditors has tapped Lamonica Herbst & Maniscalso LLP as attorneys. AMBAC FINANCIAL: AAC Postpones Hearing on Suit vs. Hercules ----------------------------------------------------------- The city of Hercules and Ambac Assurance Corporation agreed to postpone a Feb. 21 hearing to allow more time to settle a $4.1 million lawsuit out of court, according to city manager Steven Duran, Laila Kearney of www.HerculesPatch.com reported. The hearing has been moved to Feb. 28, 2012, but the parties have agreed to ask the court to delay the hearing until March 6, Mr. Duran wrote in a weekly report obtained by Ms. Kearney. AAC previously filed the lawsuit seeking the turnover by the City of all $4.1 million in tax increments collected in December or getting the court to freeze the funds. Court Commissioner Judith A. Sanders denied AAC's request and rescheduled the Feb. 21 hearing instead. "The basic problem is that the agency has no money and its fund balance is negative, even with the approximately $4.1 million in tax increment income received in December," Mr. Duran said, the report cited. "The city's pooled cash can simply no longer afford to subsidize the Redevelopment Agency. To do so at this juncture would leave the city's general fund balance insufficient to continue operations." About Ambac Financial Ambac Financial Group, Inc., headquartered in New York City, is a holding company whose affiliates provided financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac Financial filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-15973) in Manhattan on Nov. 8, 2010. Ambac said it will continue to operate in the ordinary course of business as "debtor- in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. Ambac's bond insurance unit, Ambac Assurance Corp., did not file for bankruptcy. AAC is being restructured by state regulators in Wisconsin. AAC is domiciled in Wisconsin and regulated by the Office of the Commissioner of Insurance of the State of Wisconsin. The parent company is not regulated by the OCI. Ambac's consolidated balance sheet -- which includes non-debtor Ambac Assurance Corp -- showed US$30.05 billion in total assets, US$31.47 billion in total liabilities, and a US$1.42 billion stockholders' deficit, at June 30, 2010. On an unconsolidated basis, Ambac said in a court filing that it has assets of (US$394.5 million) and total liabilities of US$1.6826 billion as of June 30, 2010. Bank of New York Mellon Corp., as trustee to seven different types of notes, is listed as the largest unsecured creditor, with claims totaling about US$1.62 billion. Peter A. Ivanick, Esq., Allison H. Weiss, Esq., and Todd L. Padnos, Esq., at Dewey & LeBoeuf LLP, serve as the Debtor's bankruptcy counsel. The Blackstone Group LP is the Debtor's financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. KPMG LLP is tax consultant to the Debtor. Anthony Princi, Esq., Gary S. Lee, Esq., and Brett H. Miller, Esq., at Morrison & Foerster LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Lazard Freres & Co. LLC is the Committee's financial advisor. Ambac Financial disclosed Feb. 16 that, in order to give it additional time to negotiate a final settlement of its dispute with the Department of the Treasury -- Internal Revenue Service, the voting deadline relating to the Second Amended Plan of Reorganization of Ambac Financial dated Sept. 30, 2011 has been extended to Feb. 29, 2012 at 5:00 p.m. (prevailing Pacific Time) and the Plan objection deadline has been extended to Feb. 29, 2012 at 4:00 p.m. The Bankruptcy Court hearing relating to the confirmation of the Plan remains scheduled for March 13, 2012. Bankruptcy Creditors' Service, Inc., publishes Ambac Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Ambac Financial Group and the restructuring proceedings of Ambac Assurance Corp. (http://bankrupt.com/newsstand/or 215/945- 7000). AMERICAN AIRLINES: Opposes Plea to Dismiss Chapter 11 Case ---------------------------------------------------------- AMR Corp., the parent of American Airlines Inc., asked the U.S. Bankruptcy Court for the Southern District of New York to deny the proposed dismissal of its bankruptcy petition. Earlier, Vern Englert, an AMR shareholder, wrote a letter to Judge Sean Lane asking for the dismissal of the company's petition for bankruptcy protection. Citing reports that AMR has a cash reserve position at $4 billion, Mr. Englert said the company failed to prove that it is in "dire financial straits sufficient to warrant its bankruptcy filing." Mr. Englert also complained that AMR did not call for a vote among its shareholders for a reverse stock split, which enabled the company to "recapitalize and effectively restructure its overall debt situation." The company, he said, did not also provide evidence "proving a restructuring effort via negotiation with creditors." AMR lawyer, Stephen Karotkin, Esq., at Weil Gotshal Manges LLP, in New York, said Mr. Englert failed to establish cause for dismissal of the bankruptcy cases. He pointed out that Mr. Englert only made "cursory, unsubstantiated allegations" regarding the company's management, financial condition and other matters which, the lawyer said, are irrelevant. "Mr. Englert's dissatisfaction, as claimed, may be understandable but it is not a basis for dismissal of the Chapter 11 cases," Mr. Karotkin said in court papers. "The Chapter 11 cases were commenced in conformity with applicable law and principles." About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. American Airlines, American Eagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights. The combined network fleet numbers more than 900 aircraft. The Company reported a net loss of $884 million on $18.02 billion of total operating revenues for the nine months ended Sept. 30, 2011. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. The Company's balance sheet at Sept. 30, 2011, showed $24.72 billion in total assets, $29.55 billion in total liabilities, and a $4.83 billion stockholders' deficit. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, are on board as special counsel. Rothschild Inc., is the financial advisor. Garden City Group Inc. is the claims and notice agent. Jack Butler, John Lyons, Felecia Perlman and Jay Goffman at Skadden, Arps, Slate, Meagher & Flom LLP entered their appearance as proposed counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings on Dec. 9, 2011. The Committee has selected Togut, Segal & Segal LLP as co-counsel for conflicts and other matters; Moelis & Company LLC as its investment banker, and Mesirow Financial Consulting, LLC as its financial advisor. Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by AMR Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN AIRLINES: Rothschild as Advisor Has Interim Order ---------------------------------------------------------- The Court approved, on an interim basis, AMR Corp. and its affiliates' application to employ Rothschild Inc. as their financial advisor, nunc pro tunc to the Petition Date. The Court will consider final approval of the Debtors' Application on February 29, 2012. Objections are due no later than Feb. 24. Before the Final Hearing and pending further order of the Court, no compensation or expense reimbursement will be paid by the Debtors to Rothschild. Rothschild, which advised the Debtors before they sought bankruptcy protection, is expected to provide these services: (1) identifying or initiating potential restructuring transactions; (2) reviewing and analyzing the Debtors' assets and their operating and financial strategies; (3) reviewing and analyzing the Debtors' business plans and financial projections; (4) evaluating the Debtors' debt capacity in light of their projected cash flows and assisting in determining the appropriate capital structure for the Debtors; (5) assisting the Debtors and their other professionals in reviewing the terms of any proposed restructuring transaction and in evaluating alternative proposals for a restructuring transaction; (6) determining a range of values for the Debtors and any securities that they offer or propose to offer in connection with a restructuring transaction; (7) reviewing and analyzing any proposals the Debtors receive from third parties in connection with a restructuring transaction; (8) providing advice to the Debtors with respect to, and attending, meetings of their Board of Directors, creditor groups, official constituencies and other interested parties; and (9) participating in hearings and providing testimony with respect to the issues related to any proposed plan. Rothschild will be paid a monthly advisory fee of $200,000 and will be reimbursed for its expenses. The firm will also receive a sum of $15 million when either a bankruptcy plan or restructuring transaction is approved, so-called new capital fees of 1% to 3% of the amount raised, and fee credits. In court papers, David Resnick, chairman of Rothschild's Global Financing Advisory, disclosed that his firm does not hold or represent interest adverse to the Debtors or their estates, and that the firm is a "disinterested person" under Section 101(14) of the Bankruptcy Code. According to The Wall Street Journal, the Debtors paid Rothschild almost $1.6 million in advisory fees in the six months prior to their bankruptcy filing. The Journal added that a retention letter, dated Oct. 17, prompted the payment by the Debtors of a $400,000 retainer and $290,000 in fees to the firm. About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. American Airlines, American Eagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights. The combined network fleet numbers more than 900 aircraft. The Company reported a net loss of $884 million on $18.02 billion of total operating revenues for the nine months ended Sept. 30, 2011. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. The Company's balance sheet at Sept. 30, 2011, showed $24.72 billion in total assets, $29.55 billion in total liabilities, and a $4.83 billion stockholders' deficit. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, are on board as special counsel. Rothschild Inc., is the financial advisor. Garden City Group Inc. is the claims and notice agent. Jack Butler, John Lyons, Felecia Perlman and Jay Goffman at Skadden, Arps, Slate, Meagher & Flom LLP entered their appearance as proposed counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings on Dec. 9, 2011. The Committee has selected Togut, Segal & Segal LLP as co-counsel for conflicts and other matters; Moelis & Company LLC as its investment banker, and Mesirow Financial Consulting, LLC as its financial advisor. Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by AMR Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN AIRLINES: Interim Order on Perella Hiring Entered ---------------------------------------------------------- The Bankruptcy Court entered an interim order authorizing the employment of Perella Weinberg Partners LP as the Debtors' financial advisor, nunc pro tunc to the Petition Date. The Court will consider final approval of the Debtors' Application on February 29, 2012. Objections are due no later than Feb. 24. Before the Final Hearing and pending further order of the Court, no compensation or expense reimbursement will be paid by the Debtors to Perella. The Debtors have sought approval to hire Perella Weinberg as a financial adviser and investment banker, with a promise of $6.5 million in fees for the firm when either a bankruptcy plan is approved or the sale of almost all of their assets is completed. The firm, which will also get a monthly fee of $225,000 and reimbursed expenses, will provide labor-related restructuring services. These services include a review and analysis of available strategic alternatives with respect to the Debtors' labor agreements, pension and other post-retirement plans, among other things. Randall White, associate general counsel of AMR Corp., said the services to be provided by Perella will be "appropriately directed" by the Debtors to avoid duplication of services. Earlier, the Debtors also proposed to employ Rothschild Inc. as a financial adviser and investment banker. Rothschild, however, will only provide capital structure-related restructuring advice. Adam Verost, managing director of Perella Weinberg Partners LP, disclosed in a declaration that his firm does not hold or represent interest adverse to the Debtors and their estates. About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. American Airlines, American Eagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights. The combined network fleet numbers more than 900 aircraft. The Company reported a net loss of $884 million on $18.02 billion of total operating revenues for the nine months ended Sept. 30, 2011. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. The Company's balance sheet at Sept. 30, 2011, showed $24.72 billion in total assets, $29.55 billion in total liabilities, and a $4.83 billion stockholders' deficit. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, are on board as special counsel. Rothschild Inc., is the financial advisor. Garden City Group Inc. is the claims and notice agent. Jack Butler, John Lyons, Felecia Perlman and Jay Goffman at Skadden, Arps, Slate, Meagher & Flom LLP entered their appearance as proposed counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings on Dec. 9, 2011. The Committee has selected Togut, Segal & Segal LLP as co-counsel for conflicts and other matters; Moelis & Company LLC as its investment banker, and Mesirow Financial Consulting, LLC as its financial advisor. Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by AMR Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN AIRLINES: Morgan Application Has Hearing Feb. 29 --------------------------------------------------------- The Bankruptcy Court entered an interim order authorizing American Airlines Inc. and its affiliates' employment of Morgan Lewis & Bockius LLP as the Debtors' special counsel, nunc pro tunc to the Petition Date. The Court will consider final approval of the Debtors' Application on February 29, 2012. Objections are due no later than Feb. 24. Before the Final Hearing and pending further order of the Court, no compensation or expense reimbursement will be paid by the Debtors to Morgan. In court papers, Thomas Reinert Jr., Esq., at Morgan, Lewis & Bockius LLP, in Washington, D.C., disclosed additional connections with landlords in matters unrelated to the Debtors' bankruptcy cases. Mr. Reinert disclosed that the firm currently represents or represented recently these landlords: (1) Center Operating Company, L.P. (2) City of Philadelphia Aviation (3) City of San Jose (4) County of Sacramento (5) DFW Airport (6) Mitsubishi Logistics Corp. (7) MPC Holdings (8) Northwest Airlines, Inc. (9) Port Authority of NY & NJ (10) Port of Portland (11) Publix N.V. (12) Rolls Royce Inc. (13) Texas A&M University (14) The Continental Group (15) United Airlines, Inc. (16) US Airways, Inc. Morgan Lewis also represents the John S. and James L. Knight Foundation where Albert Ibarguen, one of the Debtors' directors, serves as chief executive officer and president, according to the lawyer. "Such relationships do not represent an interest adverse to the Debtors or their estates with respect to the matters on which Morgan Lewis is to be employed," Mr. Reinert said. The Debtors tapped the firm to provide services with respect to collective bargaining and other labor-related negotiations with their pilots, flight attendants and other union-represented employee groups. Morgan Lewis won't handle the preparation and presentation of any motion under Section 1113 or 1114 of the Bankruptcy Code, which will be handled by Paul Hastings LLP. The firm will also provide services with respect to labor and employment claims in arbitration and litigation involving the Debtors. The Debtors proposed to pay Morgan Lewis its hourly rates for services rendered, and reimburse the firm of its expenses. Its hourly rates range from $428 to $900 for partners; $460 to $505 for counsel; $255 to $495 for associates; and $128 to $270 for legal assistants. Thomas Reinert Jr., Esq., a member of Morgan Lewis & Bockius LLP, disclosed that the firm does not represent any adverse interest to the Debtors. Mr. Reinert may be reached at: Thomas Reinert, Jr., Esq. MORGAN LEWIS & BOCKIUS LLP 1111 Pennsylvania Avenue, NW Washington, D.C. 20004-2541 Tel: (202) 739-3000 Fax: (202) 739-3001 E-mail: treinert@morganlewis.com About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. American Airlines, American Eagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights. The combined network fleet numbers more than 900 aircraft. The Company reported a net loss of $884 million on $18.02 billion of total operating revenues for the nine months ended Sept. 30, 2011. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. The Company's balance sheet at Sept. 30, 2011, showed $24.72 billion in total assets, $29.55 billion in total liabilities, and a $4.83 billion stockholders' deficit. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, are on board as special counsel. Rothschild Inc., is the financial advisor. Garden City Group Inc. is the claims and notice agent. Jack Butler, John Lyons, Felecia Perlman and Jay Goffman at Skadden, Arps, Slate, Meagher & Flom LLP entered their appearance as proposed counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings on Dec. 9, 2011. The Committee has selected Togut, Segal & Segal LLP as co-counsel for conflicts and other matters; Moelis & Company LLC as its investment banker, and Mesirow Financial Consulting, LLC as its financial advisor. Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by AMR Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN AIRLINES: Objections to McKinsey Hiring Due Feb. 24 ------------------------------------------------------------ Judge Sean Lane approved, on an interim basis, the Debtors' application to employ McKinsey Recovery & Transformation Services U.S., LLC, McKinsey & Company, Inc. United States, and McKinsey & Company, Inc. Japan as their management consultants, nunc pro tunc to December 12, 2011. The Court will consider final approval of the Debtors' Application on February 29, 2012. Objections are due no later than Feb. 24. Before the Final Hearing and pending further order of the Court, no compensation or expense reimbursement will be paid by the Debtors to McKinsey. Pursuant to an agreement with the Debtors, the services of McKinsey Recovery, McKinsey & Co. Inc., and its Japan-based office will be provided in three phases. Business plan support and adaptation services will be provided during the first two phases. During the initial phase, the firms will work with the Debtors' senior management team to evaluate their five-year business plan. The business plan will be adapted by the firms during the second phase to reflect changes in economic climate and other conditions. During the final phase, the firms will assist the Debtors in responding to inquiries from the Official Committee of Unsecured Creditors, suppliers, unions, and other third parties on specifics of the business plan. The firms will be paid on an hourly basis and will be reimbursed of their expenses. The hourly rates of the firms' professionals are: Professionals Hourly Rates ------------- ------------ Practice Leader $750-$985 Executive Vice President $650-$750 Senior Vice President $500-$650 Manager $450-$500 Senior Associate $350-$450 Associate $300-$350 Analyst $200-$300 Paraprofessional $100-$175 The Debtors also agreed to indemnify the firms for any liability that may result in connection with their employment. Seth Goldstrom, a director and a practice leader at McKinsey Recovery, disclosed in court papers that the firms do not hold or represent interest adverse to the Debtors' estates. About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. American Airlines, American Eagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights. The combined network fleet numbers more than 900 aircraft. The Company reported a net loss of $884 million on $18.02 billion of total operating revenues for the nine months ended Sept. 30, 2011. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. The Company's balance sheet at Sept. 30, 2011, showed $24.72 billion in total assets, $29.55 billion in total liabilities, and a $4.83 billion stockholders' deficit. Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the Debtors. Paul Hastings LLP and Debevoise & Plimpton LLP Groom Law Group, Chartered, are on board as special counsel. Rothschild Inc., is the financial advisor. Garden City Group Inc. is the claims and notice agent. Jack Butler, John Lyons, Felecia Perlman and Jay Goffman at Skadden, Arps, Slate, Meagher & Flom LLP entered their appearance as proposed counsel to the Official Committee of Unsecured Creditors in AMR's chapter 11 proceedings on Dec. 9, 2011. The Committee has selected Togut, Segal & Segal LLP as co-counsel for conflicts and other matters; Moelis & Company LLC as its investment banker, and Mesirow Financial Consulting, LLC as its financial advisor. Bankruptcy Creditors' Service, Inc., publishes AMERICAN AIRLINES BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by AMR Corp. and its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN AIRLINES: SkyWorks as Aircraft Advisor Has Interim Order ----------------------------------------------------------------- Judge Sean Lane entered an interim order authorizing the employment of SkyWorks Capital, LLC as the Debtors' aircraft restructuring advisor, nunc pro tunc to the Petition Date. The Court will consider final approval of the Debtors' Application on February 29, 2012. Objections are due no later than Feb. 24. Before the Final Hearing and pending further order of the Court, no compensation or expense reimbursement will be paid by the Debtors to SkyWorks. The company tapped the firm to provide services in connection with the restructuring of its secured debt and lease obligations with respect to its aircraft. SkyWorks will also provide other consulting services including assisting American Airlines in arranging a sale or leaseback financing, in completing transactions that involve a sale of aircraft, and in reviewing and negotiating claims with creditors. The firm will get a restructuring fee of $445,000 for each of the first 15 months during the pendency of American Airlines' bankruptcy case, and $100,000 for each month thereafter. The firm will also receive fees for its other consulting services, and reimbursed expenses. SkyWorks does not hold or represent any interest adverse to American Airlines or its estate, according to a declaration by its managing director, Matthew Landess. ARCHSTONE APARTMENTS: Zell's Equity Raises Bid to $1.5-Bil. ---------------------------------------------------------- Kaitlin Ugolik at Bankruptcy Law360 reports that multifamily real estate developer Equity Residential said it has upped its bid for half of Bank of America Corp. and Barclays PLC's 53 percent stake in apartment company Archstone to nearly $1.5 billion as Lehman Brothers Holdings Inc. prepares to take control of the company. The increased bid, up from about $1.3 billion, is part of a deal Equity has reached with the banks that extends its deadline for buying their stake in Archstone to April 19, according to Law360. The parties reached a deal to extend Equity Residential's option to buy a stake in competitor Archstone by 60 days, according to a press release Monday and people familiar with the terms of the deal. About Archstone Archstone considers itself a national leader in apartment investment, development and operations. The company's portfolio is concentrated in many of the most desirable neighborhoods in and around Washington, D.C., Los Angeles, San Diego, San Francisco, New York, Seattle and Boston. As of September 30, 2010, the company owned or had an ownership position in 441 communities located in the United States and Europe, representing 81,613 units, including units under construction. AXESSTEL INC: Has $1.1-Mil. Profit; But Going Concern Doubt Raised ------------------------------------------------------------------ Axesstel, Inc., filed with the U.S. Securities and Exchange Commission a Form 10-K reporting net income of $1.09 million on $54.12 million of revenue for the year ended Dec. 31, 2011, compared with a net loss of $6.31 million on $45.43 million of revenue during the prior year. The Company's balance sheet at Dec. 31, 2011, showed $11.49 million in total assets, $23.12 million in total liabilities, all current, and an $11.63 million total stockholders' deficit. The Company's independent auditors expressed substantial doubt about the Company's ability to continue as a going concern following the Company's 2011 results. Gumbiner Savett Inc., in Santa Monica, Calif., noted that although the Company generated net income in 2011, the Company has historically incurred substantial losses from operations and the Company may not have sufficient working capital or outside financing available to meet its planned operating activities over the next twelve months. Additionally, there is uncertainty as to the impact that the worldwide economic downturn may have on the Company's operations. A full-text copy of the Form 10-K is available for free at: http://is.gd/DOlss0 About Axesstel, Inc. San Diego, Calif.-based Axesstel, Inc. (OTC BB: AXST) -- http://www.axesstel.com/-- is a provider of fixed wireless voice and broadband access solutions for the worldwide telecommunications market. BANKS HOLDING: RBC Fails in Bid to Dismiss or Convert Case ---------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of North Carolina denied Royal Bank of Canada' motion to dismiss or convert the Chapter 11 case of Banks Holding Company, L.P. RBC is the holder of a debt instrument executed by the Debtor on 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. In its motion, RBC told 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. The Debtor informed the Court that the parties have agreed to an extension until March 1, 2012, for the Debtor to submit a proposed plan. In its ruling, the Court indicated it will enter an order extending the time for the Debtor to file its Disclosure Statement and Plan of Reorganization soon after March 1, 2012. The Court also ordered the Debtor to continue to make postpetition adequate protection payments to RBC. The Debtor is also ordered to make additional payment of $15,629.23 to replace RBC's equity cushion loss. 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. BERTHEL GROWTH: Court Orders Termination of SBIC Receivership ------------------------------------------------------------- Berthel Growth & Income Trust I previously reported that on Jan. 7, 2009, the U.S. District Court for the Northern District of Iowa entered a Consent Order and Judgment by which the Court appointed the United States Small Business Administration as the receiver for Berthel SBIC. Berthel SBIC, LLC, is a wholly-owned subsidiary of the Company. On Feb. 13, 2012, the Court: (i) approves the Third and Final Receiver's Report for the Period Jan. 1, 2011, through Dec. 19, 2011; (ii) approves every act, transaction, receipt and disbursement reported in the Final Receiver's Report; (iii) orders the termination of the Berthel SBIC receivership; (iv) discharges all claims against and obligations of the receivership estate, the Receiver and Berthel SBIC; (v) lifts the stay and injunction imposed by paragraph 7 of the Receivership Order; (vi) discharges the SBA as Receiver; (vii) discharges and releases the SBA, its employees, officers, agents, contractors, attorneys and any other person who acted on behalf of the Receiver against any and all claims, obligations, and liabilities arising from the activities, management or operation of Berthel SBIC, the receivership or the receivership estate; and (viii) unconditionally transfers control of Berthel SBIC to the Company. A copy of the Final Receiver's Report is available for free at: http://is.gd/7y5aN2 About Berthel Growth Based in Marion, Iowa, Berthel Growth & Income Trust I was a Delaware business trust that has elected to be treated as a business development company under the Investment Company Act of 1940. The trust's Registration Statement was declared effective June 21, 1995, at which time the trust began offering Shares of Beneficial Interest. The underwriting period was completed on June 21, 1997, with a total of $10,541,000 raised. The trust is a closed-end management investment company intended as a long-term investment and not as a trading vehicle. At Sept. 30, 2008, the Trust had $2,760,919 in total assets and $9,565,186 in total liquidation. BOZEL S.A.: Plan of Liquidation Declared Effective -------------------------------------------------- BOZEL, S.A., et al., notified the U.S. Bankruptcy Court for the Southern District of New York, creditors and parties-in-interest that the Effective Date of the Amended Joint Plan of Liquidation proposed by Official Committee of Unsecured Creditors occurred on Feb. 10, 2012. The Court confirmed the Plan on Feb. 9. The Debtor filed an Amended Disclosure Statement for the Amended Joint Chapter 11 Plan of Liquidation dated Dec. 27, 2011, which is the product of the effort by the Debtors, after negotiation with the Committee, to develop a plan that will enable creditors to receive the maximum recovery possible in this case with the consent of the impaired classes. The Plan reflects a series of compromises and agreements made between the Debtors and the Committee on behalf of the unsecured creditors of the Debtors. Under the Plan, administrative claims, priority tax claims and fee claims will have full recovery of their claims. Bozel S.A.'s General Unsecured Creditors will recover up to 1.65% of their claims, while Bozel, LLC's General unsecured Creditors will recover up to 0.82% of their claims. Holders of Prepetition Date Intercompany claims, Equity Interests in Bosel Sa and Bozel, LLC will have no recovery. The Plan will be funded from the Bozel S.A. assets and the Bozel, LLC assets. A full-text copy of the Amended Disclosure Statement is available for free at http://bankrupt.com/misc/BOZEL_SA_ds_amended.pdf About Bozel S.A. Bozel S.A. is a company limited by shares (a 'societe anonyme"or ('s.A.") organized under the Grand Duchy of Luxembourg, and registered with the Luxembourg Trade and Companies Register under the number B107769. Bozel is a holding company which, at the time of its Chapter 11 filing, owned substantially all of the stock in Bozel Mineracao, S.A. (organized in Brazil) ("Bozel Brazil") and Bozel Europe S.A.S. (organized in France) ("Bozel Europe"), and continues to own Bozel, LLC (organized in the state of Florida). Prior to the sale of Bozel Brazil and Bozel Europe to Japan Metals & Chemicals, Co., Ltd. ("JMC"), Bozel S.A., through its three operating subsidiaries on three continents, was a worldwide leader in the sale of calcium silicon ("CaSi"). Immediately preceding its filing for bankruptcy protection, Bozel S.A. sold over 40% of the world's CaSi powder output. Bozel Brazil produces primarily CaSi and cored wire, which is an industry-preferred ingredient in the production of high quality steel and steel alloys. Bozel Europe produces primarily cored wire. Bozel, LLC, formerly marketed and distributed in the United States the products produced by Bozel Brazil. Bozel S.A. is the sole member and manager of Bozel, LLC. Bozel sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 10-11802) on April 6, 2010. In its amended schedules, Bozel disclosed US$41,134,010 in assets and US$47,365,036 in liabilities. Bozel, LLC, filed a separate petition for Chapter 11 (Bankr. S.D.N.Y. Case No. 11-10033) on Jan. 10, 2011. Allen G. Kadish, Esq., and Kaitlin R. Walsh, Esq., at Greenberg Traurig, LLP, in New York, and Mark D. Bloom Esq., at Greenberg Traurig, LLP, in Miami, represent the Debtors as counsel. The two cases are jointly administered under Case No. 10-11802. B.R.H. CONSULTANTS: Case Summary & 18 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: B.R.H. Consultants, Inc. 7170 Burbank Drive Baton Rouge, LA 70820 Bankruptcy Case No.: 12-10193 Chapter 11 Petition Date: February 20, 2012 Court: U.S. Bankruptcy Court Middle District of Louisiana (Baton Rouge) Debtor's Counsel: James M. Herpin, Esq. STEFFES VINGIELLO & MCKENZIE, LLC 200 Government Street, Suite 200 Baton Rouge, LA 70802 Tel: (225) 346-1600 Fax: (225) 346-1616 E-mail: bankr@herpindegeneres.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Brent Steven Honor�, vice president. Debtor's List of Its 18 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Massey Services -- $7,049,245 P.O. Box 547668 Orlando, FL 32854 Gulf Coast Bank and Trust Company, -- $2,700,000 Inc. 200 St. Charles Street New Orleans, LA 70130 BankcorpSouth -- $200,000 2910 West Jackson Street Tupelo, MS 38801 Capital One Bank, N.A. -- $125,000 Daenen Henderson & Co. -- $7,887 Daenen Henderson & Co. -- $3,672 Carnival Master Card -- $0 Southwest Card -- $0 M&S Water -- $0 Baton Rouge Water & Sewer Co. -- $0 Charter Communications of LA -- $0 Cobridge Communications -- $0 Point Coupee Parish Utilities -- $0 Cox Communications -- $0 Allied Waste -- $0 Gulf Coast Office -- $0 M&S Water -- $0 Massey Services -- $0 BURBANK LANDING: Case Summary & 18 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Burbank Landing Properties, LLC 7170 Burbank Drive Baton Rouge, LA 70820 Bankruptcy Case No.: 12-10191 Chapter 11 Petition Date: February 20, 2012 Court: U.S. Bankruptcy Court Middle District of Louisiana (Baton Rouge) Debtor's Counsel: James M. Herpin, Esq. STEFFES VINGIELLO & MCKENZIE, LLC 200 Government Street, Suite 200 Baton Rouge, LA 70802 Tel: (225) 346-1600 Fax: (225) 346-1616 E-mail: bankr@herpindegeneres.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Brent Steven Honor�, member. Debtor's List of Its 18 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Massey Services -- $7,049,245 P.O. Box 547668 Orlando, FL 32854 Gulf Coast Bank and Trust Company, -- $2,700,000 Inc. 200 St. Charles Street New Orleans, LA 70130 BankcorpSouth -- $200,000 2910 West Jackson Street Tupelo, MS 38801 Capital One Bank, N.A. -- $125,000 Daenen Henderson & Co. -- $7,887 Daenen Henderson & Co. -- $3,672 Carnival Master Card -- $0 Southwest Card -- $0 M&S Water -- $0 Baton Rouge Water & Sewer Co. -- $0 Charter Communications of LA -- $0 Cobridge Communications -- $0 Point Coupee Parish Utilities -- $0 Cox Communications -- $0 Allied Waste -- $0 Gulf Coast Office -- $0 M&S Water -- $0 Massey Services -- $0 CABI SMA: Can Incur $700,000 Unsecured Financing from Affiliates ---------------------------------------------------------------- The Hon. Jay Cristol of the U.S. Bankruptcy Court for the Southern District of Florida issued an order granting, in part, CABI SMA Tower I, LLLP's request to obtain postpetition unsecured financing. As reported in the Troubled Company Reporter on Jan. 31, 2012, the Debtor requested authorization to obtain $700,000 in financing on an administrative priority basis from its affiliates Cabi Holdings, Inc. and Cabi Developers, LLC. The Debtor would use the money to fund actual and necessary administrative expenses that have been or likely will be incurred by the Debtor or on its behalf. The Court, in response to the objection filed by secured creditor Brickell Central, LLC, ordered that the loan will be made solely on a subordinated basis and will be junior in priority to all general unsecured claims and any deficiency claim that may be asserted by Brickell. Brickell Central is a creditor with respect to more than $30.5 million in note obligations owed by the Debtor. The Court also ordered that the lenders will be entitled to an allowed administrative claim for all amounts actually disbursed under the loan and accrued interest thereon. As reported in the TCR on Dec. 27, 2011, the terms of the proposed DIP financing include: A. Interest Rate: 6-month LIBOR plus 100 basis points (simple interest, payable at maturity, adjusted on the last business day of each calendar quarter) B. Maturity: Unless extended by the Lenders in writing, upon the first to occur of (a) the Effective Date of a Confirmed Plan of Reorganization, or (b) the dismissal or conversion of the Debtor's bankruptcy case. C. Fees: None D. Disbursements: Funds to be disbursed upon request; interest to accrue from disbursement date(s) G. Prepayment: Authorized in whole or in part without penalty. About Cabi SMA Tower I Based in Miami, Florida, Cabi SMA Tower I, LLLP -- fka Cabi SMA Retail 1, LLC; Cabi SMA, LLLP; Cabi SMA Tower 2, LLC; Cabi SMA Tower 2, LLLP; Capital at Brickell; Cabi SMA Retail 2, LLLP; Cabi SMA Retail 2, LLC; Cabi SMA Tower 1, LLC; and Cabi SMA Retail I, LLLP -- owns multiple vacant parcels around South Miami Avenue and S.W. 14th Street in Miami, Florida. It acquired the parcels to develop residential, hotel, and retail space, including a condominium development. The parcels are being managed by Cabi Developers, LLC pursuant to a management agreement. Cabi SMA Tower I filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 10-49009) on Dec. 28, 2010. Mindy A. Mora, Esq., and Tara V. Trevorrow, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, in Miami, serve as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliates Cabi Downtown, LLC (Bankr. S.D. Fla. Case No. 09-27168) and Cabi New River LLC (Bankr. S.D. Fla. Case No. 10-49013) filed separate Chapter 11 petitions. No creditor's committee has been appointed in Cabi SMA Tower I, LLLP's Chapter 11 case. CABI SMA: Plan Confirmation Hearing Scheduled for April 4 --------------------------------------------------------- The Hon. Jay Cristol of the U.S. Bankruptcy Court for the Southern District of Florida will convene a hearing on April 4, 2012, at 2:00 p.m., to consider the confirmation of CABI SMA Tower I, LLLP's Chapter 11 Plan. Ballots accepting or rejecting the Plan and objections, if any, to the Plan are due March 21. The Plan Proponent has until March 30, to file a proponent's report and confirmation affidavit. Under the Plan, general unsecured creditors will recover 15% of their claims, while existing equity interest holders will recover nothing. The Plan is premised upon the funding of (i) up to $4,870,000 on the Effective Date in order to consummate the Plan, and (ii) shortfalls, if any, from additional equity contributions by Newco or development financing by Newco. The Plan Investors will make the Equity Contribution and the Development Financing via a newly formed limited liability company, Teca Group Investments LLC. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/CABI_SMA_3rdrevisedds.pdf The Court has continued until Feb. 28, at 3:00 p.m., the hearing to consider the Debtor's request for an extension in its exclusive period to solicit acceptances for the proposed Chapter 11 Plan. About Cabi SMA Tower I Based in Miami, Florida, Cabi SMA Tower I, LLLP -- fka Cabi SMA Retail 1, LLC; Cabi SMA, LLLP; Cabi SMA Tower 2, LLC; Cabi SMA Tower 2, LLLP; Capital at Brickell; Cabi SMA Retail 2, LLLP; Cabi SMA Retail 2, LLC; Cabi SMA Tower 1, LLC; and Cabi SMA Retail I, LLLP -- owns multiple vacant parcels around South Miami Avenue and S.W. 14th Street in Miami, Florida. It acquired the parcels to develop residential, hotel, and retail space, including a condominium development. The parcels are being managed by Cabi Developers, LLC pursuant to a management agreement. Cabi SMA Tower I filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 10-49009) on Dec. 28, 2010. Mindy A. Mora, Esq., and Tara V. Trevorrow, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, in Miami, serve as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliates Cabi Downtown, LLC (Bankr. S.D. Fla. Case No. 09-27168) and Cabi New River LLC (Bankr. S.D. Fla. Case No. 10-49013) filed separate Chapter 11 petitions. No creditor's committee has been appointed in Cabi SMA Tower I, LLLP's Chapter 11 case. CABRINI MEDICAL: Doctors' Summary Judgment Motions Denied --------------------------------------------------------- Bankruptcy Judge Arthur J. Gonzalez denied motions for summary judgment filed in two consolidated adversary proceedings concerning a dispute between Cabrini Medical Center and three retired doctors formerly employed by Cabrini, as well as the widow of a fourth doctor. The adversary proceedings concern certain deferred compensation agreements that were entered into separately by Cabrini with each of the formerly employed doctors, prior to their retirement. The dispute concerns whether the funds subject to each deferred compensation agreement is property of the debtor's estate or whether it is excluded or exempted from the debtor's estate under sections 541(b)(7) and 547(d) of the Bankruptcy Code. Judge Gonzalez said that, with respect to the agreements, there are factual disputes concerning whether they meet the ERISA standards for a funded plan or whether the plans are unfunded. Moreover, even if a trust were created, there are factual issues concerning whether the plans, nevertheless, are unfunded "top hat" plans. The cases are: (1) CABRINI MEDICAL CENTER, Plaintiff, v. GUIDO PADULA, DILVA SALVIONI, ANGELO TARANTA, AND MANNUCCIO MANNUCCI, Defendants Adv. Proc. No. 11-02261 (Bankr. S.D.N.Y.); and (2) MANNUCCIO MANNUCCI, GUIDO PADULA, DILVA SALVIONI, AND ANGELO TARANTA, Plaintiffs, v. CABRINI MEDICAL CENTER, Defendant, Adv. Proc. No. 11-02407 (Bankr. S.D.N.Y.). A copy of the Court's Feb. 16, 2012 Opinion is available at http://is.gd/Uyvl4nfrom Leagle.com. About Cabrini Medical Center Cabrini Medical Center was an operator of an acute care voluntary hospital on East 19th Street in Manhattan. The facility ceased operating as a hospital in March 2008. The Company sought Chapter 11 protection (Bankr. S.D.N.Y. Case No. 09-14398) on July 9, 2009. Frank A. Oswald, Esq., at Togut, Segal & Segal LLP represented the Debtor. The Company estimated its assets at $50 million to $100 million, and its debts at $100 million to $500 million, at the time of the filing. Memorial Sloan-Kettering Cancer Center purchased the Debtor's facility for $83.1 million in 2010. In April 2011, Cabrini obtained approval of its Chapter 11 plan. Frank Oswald, Esq., said unsecured creditors were projected to recover between 17% and 24%. Mr. Oswald said the outcome was rewarding considering the hospital only had $200,000 in cash when the bankruptcy began. The disclosure statement said unsecured claims ultimately should total $60 million to $80 million. CARBON RESOURCES: Court Dismisses Chapter 11 Case ------------------------------------------------- Judge Robert H. Jacobvitz of the U.S. Bankruptcy Court for the District of New Mexico entered an order dismissing the Chapter 11 case of Carbon Resources, LLC. As reported in the Troubled Company Reporter on Jan. 25, 2012, Carbon Resources requested dismissal because: -- the Debtor's principal secured creditor, PCM Venture II, LLC, has been paid in full as a condition of sale of the principal assets of the Debtor; -- the Debtor is able to resolve its debts owing to the remaining creditors without the assistance of the Court; -- the Debtor has filed all operating reports required to be filed; and -- the Debtor anticipates paying all fees due to be paid the United States Trustee. About Carbon Resources LLC Sandia Park, New Mexico-based Carbon Resources LLC, a Nevada limited liability company, owned a leasehold interest in an approximately 5,060 acre coal lease near Scofield, Utah. The Company filed for Chapter 11 bankruptcy protection (Bankr. N.M. Case No. 10-16104) on Dec. 10, 2010. M.J. Keefe, Esq., at Gilpin & Keefe, PC, and the law firm of James M. LaGanke P.L.L.C., serve as the Debtor's bankruptcy counsel. In its schedules, the Debtor disclosed $22,210,696 in assets and $5,416,004 in liabilities as of the Petition Date. CAUCEDO INVESTMENTS: Fitch Withdraws 'BB-' Rating on Sr. Notes -------------------------------------------------------------- Fitch Ratings has withdrawn its 'BB-(exp)' rating on Caucedo Investments Inc.'s (CII) US$180 million Senior Notes. CII has informed Fitch that the note issuance will not proceed. CDC CORP: CDC Software Sale Set for March 16 Auction ---------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that CDC Corp. will hold an auction on March 16 to learn if anyone will top the bid of about $250 million for the company's 87% interest in CDC Software Corp. The report relates that under sale procedures approved last week by the U.S. Bankruptcy Court in Atlanta, competing bids are due initially on March 9. A hearing to approve the sale will take place March 20. The first bid at auction will be made by an affiliate of Vista Equity Holdings. CDC said the sale should be sufficient to pay all claims, including a $67 million judgment and $5 million owing to trade suppliers, plus professional fees. When the sale was first announced Feb. 7, CDC doubled in price to close at $3.05. On Feb. 21, CDC fell 3 cents to $3.63 in over- the-counter trading. About CDC Corp Based in Atlanta, CDC Corp. (Nasdaq: CHINA) -- http://www.cdccorporation.net/-- is the parent company of CDC Software (Nasdaq: CDCS). CDC Software is based dually in Shanghai, China, and Atlanta and produces enterprise software applications, IT consulting services, outsourced applications development and IT staffing. The company's owners include Asia Pacific Online Ltd., Xinhua News Agency and Evolution Capital Management. CDC Corporation, doing business as Chinadotcom, filed a Chapter 11 petition (Bankr. N.D. Ga. Case No. 11-79079) on Oct. 4, 2011. James C. Cifelli, Esq., at Lamberth, Cifelli, Stokes & Stout, PA, in Atlanta, Georgia, serves as counsel. Moelis & Company LLC serves as its financial advisor and investment banker. Marcus A. Watson at Finley Colmer and Company serves as chief restructuring officer. The Debtor estimated assets and debts at $100 million to $500 million as of the Chapter 11 filing. The Official Committee of Equity Security Holders of CDC Corporation is represented by Troutman Sanders. The Committee tapped Morgan Joseph TriArtisan LLC as its financial advisor. CELL THERAPEUTICS: EMA Issues Positive Opinion on Pixuvri --------------------------------------------------------- Cell Therapeutics, Inc., announced that Pixuvri (pixantrone dimaleate) has been granted a positive opinion for conditional approval from the European Medicines Agency's Committee for Medicinal Products for Human Use. Based on the CHMP's recommendation, CTI expects that a conditional marketing authorization for Pixuvri should be granted by the European Commission within the next few months. CHMP recommended Pixuvri for conditional approval as monotherapy for the treatment of adult patients with multiple relapsed or refractory aggressive non- Hodgkin B-cell lymphomas. If the CHMP's recommendation is formally adopted by the European Commission, Pixuvri would be approved for marketing in the 27 countries that are members of the E.U., as well as the European Economic Area. The decision by the European Commission is typically issued approximately two to three months after the CHMP opinion and generally follows the recommendation from the CHMP. If the opinion is confirmed by the European Commission, Pixuvri would be the first drug approved for patients in this setting. "We are very pleased with the CHMP's positive recommendation recognizing the clinical benefit of Pixuvri in addressing a significant unmet medical need for patients with multiple relapsed or refractory aggressive B-cell NHL, and we believe that Pixuvri will add an important treatment option for physicians and provide a meaningful impact on patients," stated James A. Bianco, CEO of CTI. "There are currently no proven effective therapies for these advanced NHL patients. Our goal for this late stage patient population is to control disease progression and symptoms as a cure is no longer an option. We are encouraged by the PFS noted in the PIX301 study and the opportunity this agent provides in treating this difficult to treat group of patients," said Bertrand Coiffier, M.D., Ph.D., Professor of Hematology at the Department of Hematology, Hospices Civils de Lyon and the University Lyon 1 in Lyon, France. Similar to accelerated approval regulations in the United States, conditional marketing authorizations are granted to medicinal products with a positive benefit/risk assessment that address unmet medical needs and whose availability would result in a significant public health benefit. A conditional marketing authorization is renewable annually. Under the provisions of the conditional marketing authorization for Pixuvri, CTI will be required to complete a post-marketing study aimed at confirming the clinical benefit previously observed. The CHMP has accepted PIX306, CTI's ongoing randomized controlled phase 3 clinical trial, which compares Pixuvri-rituximab to gemcitabine-rituximab in 2nd line patients with aggressive B-cell NHL who failed front-line CHOP-R and who are not eligible for autologous stem cell transplant or as 3rd or 4th line therapy in aggressive B-cell NHL. As a condition of approval, CTI has agreed to have available the PIX306 clinical trial results by June 2015. About Cell Therapeutics Headquartered in Seattle, Washington, Cell Therapeutics, Inc. (NASDAQ and MTA: CTIC) -- http://www.CellTherapeutics.com/-- is a bi4opharmaceutical company committed to developing an integrated portfolio of oncology products aimed at making cancer more treatable. The Company reported a net loss of $82.64 million on $319,000 of revenue for the 12 months ended Dec. 31, 2010, compared with a net loss of $82.64 million on $80,000 of total revenue during the same period in 2009. The Company also reported a net loss attributable to CTI of $53.39 million on $0 of revenue for the nine months ended Sept. 30, 2011, compared with a net loss attributable to CTI of $62.92 million on $319,000 of total revenues for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $62.85 million in total assets, $33.89 million in total liabilities, $13.46 million in common stock purchase warrants, and $15.49 million total shareholders' equity. Marcum LLP, in San Francisco, Calif., expressed substantial doubt about the Company's ability to continue as a going concern in its audit reports for the financial statements for 2009 and 2010. The independent auditors noted that the Company has incurred losses since its inception, and has a working capital deficiency of approximately $14.2 million at Dec. 31, 2010. Bankruptcy Warning The Company has incurred losses since inception and expect to generate losses for the next few years primarily due to research and development costs for Pixuvri, OPAXIO, tosedostat, brostallicin and bisplatinates. If the Company receives approval of Pixuvri by the European Medicines Agency or the Food and Drug Administration, the Company would anticipate additional commercial expenses associated with Pixuvri operations. Accordingly, the Company will need to raise additional funds and is currently exploring alternative sources of equity or debt financing. The Company may seek to raise such capital through public or private equity financings, partnerships, joint ventures, disposition of assets, debt financings or restructurings, bank borrowings or other sources of financing. However, additional funding may not be available on favorable terms or at all. If additional funds are raised by issuing equity securities, substantial dilution to existing shareholders may result. If the Company fails to obtain additional capital when needed, the Company may be required to delay, scale back, or eliminate some or all of its research and development programs and may be forced to cease operations, liquidate its assets and possibly seek bankruptcy protection. CLEAR CHANNEL: Cuts Net Loss to $302.1 Million in 2011 ------------------------------------------------------ Clear Channel Communications, Inc., reported a net loss of $302.09 million on $6.16 billion of revenue in 2011, compared with a net loss of $479.08 million on $5.86 billion of revenue in 2010. The Company had a net loss of $4.03 billion on $5.55 billion of revenue in 2009. The Company reported a net loss of $43.02 million on $1.65 billion of revenue for the three months ended Dec. 31, 2011, compared with a net loss of $62.66 million on $1.63 billion of revenue for the same period a year ago. The Company's balance sheet at Dec. 31, 2011, showed $16.54 billion in total assets, $24.01 billion in total liabilities and a $7.47 billion total member's deficit. "We are pleased with our business performance in the quarter and throughout 2011," Chief Executive Officer Bob Pittman said. "In the last year, we have made great strides: putting our leadership team and strategic plans in place, strengthening our relationships with consumers globally and developing new strategies to better serve our advertising and marketing partners. I believe we are well positioned for new successes in 2012, as we continue working toward realizing the full potential of our businesses. We are continuing to build on the strengths of our national radio and digital content platform, including iHeartRadio, and further developing and executing new strategies for our outdoor businesses around the world, especially our unique digital products." Bankruptcy Warning The Company said its ability to restructure or refinance its debt will depend on the condition of the capital markets and the Company's financial condition at that time. Any refinancing of the Company's debt could be at higher interest rates and increase the Company's debt service obligations and may require it to comply with more onerous covenants, which could further restrict its business operations. The terms of existing or future debt instruments may restrict the Company from adopting some of these alternatives. These alternative measures may not be successful and may not permit the Company to meet its scheduled debt service obligations. If the Company cannot make scheduled payments on its indebtedness, it will be in default under one or more of its debt agreements and, as a result the Company could be forced into bankruptcy or liquidation. A full-text copy of the Form 10-K is available for free at: http://is.gd/28EhiQ About CC Media and Clear Channel San Antonio, Texas-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. * * * As reported by the Troubled Company Reporter on Dec. 16, 2011, Standard & Poor's revised its rating outlook on CC Media Holdings Inc., and Clear Channel, which S&P views on consolidated basis, to negative from positive. "We affirmed our ratings on the company, including the corporate credit rating of 'CCC+'," S&P said. "The outlook revision reflects our view that softening ad demand and global economic uncertainty could slow the pace of revenue growth at CC Media over the intermediate term, heightening refinancing risk around its 2014 and 2016 debt maturities," explained Standard & Poor's credit analyst Michael Altberg. "The 'CCC+' corporate credit rating reflects the risks surrounding the longer-term viability of the company's capital structure in particular, refinancing risk relating to sizable secured and unsecured debt maturities in 2014 ($2.9 billion) and 2016 ($12.3 billion). We view CC Media's financial risk profile as 'highly leveraged' (based on our criteria), given the company's significant refinancing risk, very slim EBITDA coverage of interest expense, and minimal discretionary cash flow compared to its debt burden. In our view, the company has a 'fair' business risk profile, because of its position as the largest U.S. radio and global outdoor advertising operator," S&P said. COATES INTERNATIONAL: Hires ATG as Investor Relations Firm ---------------------------------------------------------- Coates International, Ltd., reported that effective Feb. 13, 2012, it engaged the investor relations firm of ATG, Inc. The Company entered into a non-exclusive Investor Relations Services Agreement with ATG Inc., a firm that specializes in assisting public companies to improve investor relations. The primary objective of these services will be to increase awareness about the Company and its business plan in the investor and business community. The term of the Agreement is for six months and may be canceled by either party for any reason upon 30 days' prior notice. Pursuant to the Agreement, ATG will assist the Company, as requested, by providing various services including, but not limited to: 1. Dissemination of news about the Company to a targeted audience in the investor and business community. 2. Distribution of news about the Company to market makers, financial media, selected internet stock pages/threads and the OTC analyst community. 3. Dissemination of newsworthy items and press releases to known contacts at selected newspapers, magazines. 4. Assistance with strategic planning and promotional marketing. 5. Introductions to criteria-specific Broker-Dealers and Market Makers. As compensation for its services, the Company will pay ATG $50,000 per month. Management stated: "We are very pleased to be entering into this new business relationship and anticipate increased interest in our Company and improved liquidity for our current and future shareholders." About Coates International Based in Wall Township, N.J., Coates International, Ltd. (OTC BB: COTE) -- http://www.coatesengine.com/-- was incorporated on August 31, 1988, for the purpose of researching, patenting and manufacturing technology associated with a spherical rotary valve system for internal combustion engines. This technology was developed over a period of 15 years by Mr. George J. Coates, who is the President and Chairman of the Board of the Company. The Coates Spherical Rotary Valve System (CSRV) represents a revolutionary departure from the conventional poppet valve. It changes the means of delivering the air and fuel mixture to the firing chamber of an internal combustion engine and of expelling the exhaust produced when the mixture ignites. The Company reported a net loss of $1.05 million on $159,000 of sales for the year ended Dec. 31, 2010, compared with a net loss of $806,756 on $0 of sales during the prior year. The Company reported a net loss of $1.89 million on $125,000 of sales for the nine months ended Sept. 30, 2011, compared with a net loss of $546,762 on $0 of sales for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $2.85 million in total assets, $3.91 million in total liabilities, and a $1.06 million total stockholders' deficiency. Meyler & Company, LLC, in Middletown, New Jersey, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company continues to have negative cash flows from operations, recurring losses from operations, and a stockholders' deficiency. CONVERTED ORGANICS: Board OKs 1-for-500 Reverse Stock Split ----------------------------------------------------------- Converted Organics Inc. announced the results of its Special Meeting of Shareholders at its office in Boston, MA. Shareholders at the meeting authorized the Board to implement a reverse stock split and authorized the Board to have the discretion to abandon the reverse stock split. "The Company is pleased with the results of today's Special Meeting of Shareholders," said Edward J. Gildea, President and CEO of Converted Organics. "We appreciate the support shown by our shareholders and look forward to the remainder of the year as we continue to develop our existing lines of clean technology businesses and pursue available growth opportunities." Following the Special Meeting of Shareholders, the Board of Directors held a meeting at which they voted in favor of a 1-for- 500 reverse split of the Company's stock. The Company has notified FINRA and expects the split to be effective within the next two weeks. About Converted Organics Boston, Mass.-based Converted Organics Inc. utilizes innovative clean technologies to establish and operate environmentally friendly businesses. Converted Organics currently operates in three business areas, namely organic fertilizer, industrial wastewater treatment and vertical farming. The Company reported a net loss of $8.9 million on $2.8 million of revenues for the nine months ended Sept. 30, 2011, compared with a net loss of $31.6 million on $2.8 million of revenues for the same period last year. The Company's balance sheet at Sept. 30, 2011, showed $17.2 million in total assets, $11.9 million in total liabilities, and stockholders' equity of $5.3 million. As reported in the TCR on April 7, 2011, CCR LLP, in Glastonbury, Connecticut, expressed substantial doubt about Converted Organics' ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 31, 2010. The independent auditors noted that the Company has an accumulated deficit at Dec. 31, 2010, and has suffered significant net losses and negative cash flows from operations. CHURCH STREET: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Church Street Health Management, LLC fdba Sanus Holdings, LLC FORBA Holdings, LLC 618 Church Street, Suite 520 Nashville, TN 37219 Bankruptcy Case No.: 12-01573 Chapter 11 Petition Date: February 20, 2012 About the Debtor: Church Street provides management services to 67 low-income dental centers. The Debtor told the bankruptcy judge at the first day hearing that a group led by Garrison Investment Group has agreed to be the stalking horse bidder at a bankruptcy auction for the assets. Court: U.S. Bankruptcy Court Middle District of Tennessee (Nashville) Judge: Keith M. Lundin Debtor's Counsel: John Charles Tishler, Esq. WALLER LANSDEN DORTCH & DAVIS, LLP 511 Union Street, Suite 2700 Nashville, TN 37219 Tel: (615) 850-8756 Fax: (615) 244-6804 E-mail: john.tishler@wallerlaw.com Debtor?s Financial and Restructuring Advisors: ALVAREZ & MARSHAL HEALTHCARE INDUSTRY GROUP, LLC Estimated Assets: $100,000,001 to $500,000,000 Estimated Debts: $100,000,001 to $500,000,000 The petition was signed by Tore Nelson, chief executive officer. Debtor's List of Its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ National Association of Settlement $10,714,233 Medicaid Fraud Control Units 2030 M. Street NW, 8th Floor Washington, DC 20036 Medicaid Fraud Control Unit of Settlement $991,496 Massachusetts Office of Attorney General One Ashburton Place Boston, MA 02108 MCBH Church Square LLC Lease Guarantee $888,195 2701 N. Charles Street, Suite 404 Baltimore, MD 21218 Michael Lindley Severance Obligation $859,955 857 Curtiswood Lane Nashville, TN 37204 Medicaid Fraud Control Unit Settlement $841,364 Of Colorado Office of the Attorney General 1525 Sherman Street, 2nd Floor Denver, CO 80203 Medicaid Fraud Control Unit Settlement $685,799 of Ohio Office of the Attorney General 150 East Gay Street, 17th Floor Columbus, OH 43215 Alfred Smith Severance Obligation $674,546 1652 Jacobs Drive Gallatin, TN 37066 Medicaid Fraud Control Unit Settlement $644,276 Of South Carolina Office of the Attorney General P.O. Box 11549 Columbia, SC 29211-1549 Henry Schein Inc. Trade Debt $568,478 Dept CH 10241 Palatine, IL 60055-0241 Shary Retail Ltd. Lease Guaranty $542,125 P.O. Box 924133 Houston, TX 77292-4133 Medicaid Fraud Control Unit Settlement $485,361 Of Oklahoma Office of the Attorney General 313 NE 21st Street Oklahoma City, OK 73105 Medicaid Fraud Control Unit Settlement $475,969 of Indiana Office of the Attorney General 8005 Castleway Drive Indianapolis, IN 46250-1946 Medicaid Fraud Control Unit Settlement $431,334 of New York Office of the Attorney General 120 Broadway, 13th Floor New York, NY 10271 Medicaid Fraud Control Unit Settlement $394,545 of Georgia Office of the Attorney General 2100 East Exchange Place Building One, Suite 200 Tucker, GA 30084 Medicaid Fraud Control Unit Settlement $376,661 of Maryland Office of the Attorney General 200 St. Paul Place, 18th Floor Baltimore, MD 21202 Medicaid Fraud Control Unit Settlement $356,388 of Kansas Office of the Attorney General 120 SW 10th Avenue, 2nd Floor Topeka, KS 66612-1597 Habi Ltd. Lease Guarantee $326,162 P.O. Box 887 Holland, OH 43528 Medicaid Fraud Control Unit Settlement $312,206 Of Virginia Office of the Attorney General 900 E. Main Street, 5th Floor Richmond, VA 23219 Shearman & Sterling LLP Trade Debt $310,700 525 Market Street San Francisco, CA 94105-2723 Medicaid Fraud Control Unit Settlement $249,058 CUI GLOBAL: Effects 1-for-30 Reverse Common Stock Split ------------------------------------------------------- The issued and outstanding shares of CUI Global, Inc.'s $0.001 par value common stock reverse split at a ratio of one for thirty (1:30) as an element of the Company's process of 'up-listing" its shares to The Nasdaq Stock Market under the trading symbol "CUI" which up-listing to Nasdaq becomes effective Feb. 17, 2012. No fractional shares will be issued as a result of the reverse split. If the number of "pre-split" common shares is not evenly divisible by the ratio number, the "pre-split" shares will round up to the next number that is divisible by the ratio number. The number of authorized common stock will remain unaffected and the par value will remain at $0.001 per share. The Company's Form S-1 registration statement became effective at 5:30 p.m. on Feb. 14, 2012. About CUI Global Tualatin, Ore.-based CUI Global, Inc., formerly known as Waytronx, Inc., is a platform company dedicated to maximizing shareholder value through the acquisition, development and commercialization of new, innovative technologies. The Company reported a net loss of $7.5 million on $40.9 million of revenues for 2010, compared with a net loss of $16.0 million on $28.9 million of revenues for 2009. The Company also reported consolidated net profit of $177,961 on $30.14 million of total revenue for the nine months ended Sept. 30, 2011, compared with a consolidated net loss of $3.41 million on $26.28 million of total revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $32.78 million in total assets, $20.07 million in total liabilities, and $12.70 million in total stockholders' equity. As reported by the TCR on April 8, 2011, Webb & Company, in Boynton Beach, Florida, expressed substantial doubt about CUI Global's ability to continue as a going concern. The independent auditors noted that the Company has a net loss of $7,015,896, a working capital deficiency of $675,936 and an accumulated deficit of $73,596,738 at Dec. 31, 2010. DESERT GARDENS: NAI Horizon and Dan A. Paulus OK'd as Appraisers ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Arizona authorized Desert Gardens IV LLC, to employ NAI Horizon Valuation services Group, LLC, and president Dan A. Paulus, MAI, as appraisers. As reported in the Troubled Company Reporter on Feb. 20, 2012, NAI will provide the Debtor two written reports on the market values of the real properties known as Desert Gardens Apartments and Desert Gardens Apartments II located on 13517 and 13621 (respectively) W. Glendale Avenue in Glendale, Arizona. NAI's legal advisors will assist the Debtor in the course of the Chapter 11 case, including but not limited to producing credible reports which satisfy the Uniform Standards of Professional Appraisal Practice guidelines. NAI's fee for the appraisal was $10,000 which was paid prepetition. NAI will also provide consultation, deposition, courtroom testimony and related preparation on the Debtor's behalf from any litigation or related inquiries based on a professional fee of $325 per hour separate and in addition to the appraisal reports fee. To the best of the Debtor's knowledge, NAI doe not represent any other entity having an adverse interest in connection with the cases. 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. DESERT GARDENS: Has Until April 30 to Access Cash Collateral ------------------------------------------------------------ The Hon. Eileen W. Hollowell of the U.S. Bankruptcy Court for the District of Arizona issued a second stipulated interim order authorizing Desert Gardens IV, LLC's continued use of cash collateral until April 30, 2012. The stipulation was entered between the Debtor and US Bank National Association, as trustee, successor in interest to Bank of America, National Association, as trustee, successor by merger to LaSalle Bank National Association, as Trustee, for the registered holders of Bear Stearns Commercial Mortgage Securities Inc., Commercial Mortgage Pass-Through Certificates, Series 2007-PWR15. As reported in the Troubled Company Reporter on Dec. 26, 2011, all security deposits made by any tenants of the Debtor at the property -- a certain real property located at 13517 and 13621 West Glendale Avenue, Glendale, Arizona, together with all easements, rights, privileges, structures, improvements, leases, rents, furniture, fixtures, and other personal property pertaining to or affixed there -- postpetition will comprise cash collateral. As adequate protection for any diminution in value of the lenders' collateral, the Debtors will grant US Bank replacement liens, superpriority administrative expense claim status, subject to carve out on certain fees. Pursuant to the stipulation: -- In addition to the monthly payments, the Debtor will make a payment of $379 with the regularly scheduled February 2012 payment to the lender; and -- The second stipulation can be further extended by the parties in writing without further order of the Bankruptcy Court, and lender may agree, in its sole and absolute discretion, to the use of cash collateral for non-Budgeted items by separate written agreement authorizing the use. 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. DJSP ENTERPRISES: DAL Group Amends Forbearance Pact with BA Note ---------------------------------------------------------------- DAL Group, LLC, a subsidiary of DJSP Enterprises, Inc., and DAL's subsidiary, DJS Processing, LLC, the Law Offices of David J. Stern, P.A., and BA Note Acquisition LLC, entered into an amendment to the Forbearance Agreement dated Dec. 30, 2011. The Amendment, among other matters, amends the related Assignment of the Proceeds of Collateral Cases to revise the calculation of the net proceeds from the Law Offices' collection cases required to be paid to DAL and DJS. Kerry S. Propper, a member of the Board of Directors of the Company, owns a non-controlling interest in Lender. An affiliate of David J. Stern, the former Chairman, President and Chief Executive Officer of the Company, owns a non-controlling interest in Lender. A full-text copy of the Amendment is available for free at: http://is.gd/1IVioU Effective Feb. 10, 2012, the Company accepted the resignation of Juan Ruiz as a member of the Board of Directors of the Company and the Board of Managers of DAL. Mr. Ruiz resigned his positions with the Company and DAL to focus on his other business interests. About DJSP Enterprises Based in Plantation, Florida, DJSP Enterprises, Inc. (Nasdaq: DJSP, DJSPW, DJSPU) provides a wide range of processing services in connection with mortgages, mortgage defaults, title searches and abstracts, REO (bank-owned) properties, loan modifications, title insurance, loss mitigation, bankruptcy, related litigation and other services. Its principal customer is The Law Offices of David J. Stern, P.A. It has additional operations in Louisville, Kentucky and San Juan, Puerto Rico. Its U.S. operations are supported by a scalable, low-cost back office operation in Manila, the Philippines, that provides data entry and document preparation support for its U.S. operations. As reported in the Jan. 20, 2011 edition of the TCR, DAL Group, LLC, a subsidiary of DJSP Enterprises, has obtained waivers on notes held by these parties for payments due through April 1, 2011: Amount of Note -------------- Law Offices of David J. Stern, P.A. $47,869,000 Chardan Capital, LLC, $1,000,000 Chardan Capital Markets, LLC $250,000 Kerry S. Propper $1,500,000 The waivers were sought by DAL as it develops and implements plans to restructure its ongoing operations to reflect its significantly reduced revenues and operations and the other changes. DAL did not make the interest payments due Jan. 3, 2011 for (i) unsecured term notes in the aggregate principal amount of $1,600,000 (ii) and a $500,000 term note issued by Cornix Management, LLC. DAL is seeking waivers from the holders of the unsecured notes and Cornix of principal and interest payments otherwise due under these notes, and the default interest rates under these notes, through April 1, 2011. DAL has entered into a forbearance agreement with BA Note Acquisition, LLC, pursuant to which BNA has agreed to forbear from taking action on a $5.5-million line of credit until March 9, 2011. DOE MOUNTAIN INVESTMENTS: Creditors Plan Outline Hearing Feb. 28 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of South Carolina has scheduled the hearing on Feb. 28, 2012, at 9:30 a.m., on the disclosure statement in support of the joint plan of liquidation filed by creditors C5-MFB Properties LLC and Billy L. Amick for debtors Doe Mountain Investments, LLC, and Doe Mountain Development Group, Inc. As reported in the Troubled Company Reporter on Feb. 9, 2012, creditors C5-MFB Properties LLC and Billy L. Amick has filed a joint plan of liquidation for Doe Mountain Investments, LLC, and Doe Mountain Development Group, Inc., dated Jan. 20, 2012. Under the joint plan of liquidation, administrative claims, priority tax claims and priority non-tax claims are unimpaired and will be paid on the effective date or when the claims become allowed. The classes and treatment of claims against Doe Mountain Investments are: A. Class 1 (Claims of C5-MFB) will be paid in full on the latter of the closing date or the effective date. C5-MFB will retain its lien securing the allowed secured claims until all distributions have been made. The deficiency claim of C5-MFB is waived. B. Class 4 (Unsecured claims) will receive cash on the later of the closing date, or the effective date, or the claim becomes allowed. C. Class 5 (Claims of Equity Interests) will receive their pro rata share of the proceeds of the purchase price allocated to Doe Investments after payment of unclassified claims, C5-MFB claims and unsecured claims. Classes 2 and 3 and intentionally omitted under the plan for Doe Investments. The classes and treatment of claims against Doe Mountain Development are: A. Class 1 (Claims of C5-MFB) will be paid in full on the latter of the closing date or the effective date. C5-MFB will retain its lien securing the allowed secured claims until all distributions have been made. The deficiency claim of C5-MFB is waived. B. Class 2 (Claims of Amick) will be paid the settlement payment in full on the later of the closing date and the effective date. Amick will retain its lien securing the allowed secured claims until all distributions have been made. The deficiency claim of Amick is waived. C. Class 3 (Secured Claim of Clear Creek Construction) will receive $96,395.45 in full satisfaction of the claim on the later of the closing date and the effective date. Clear Creek will retain its lien securing the allowed secured claims until all distributions have been made. The deficiency claim of Clear Creek is waived. D. Class 4 (Unsecured claims) will receive cash will on the later of the closing date, or the effective date, or the claim becomes allowed. E. Class 5 (Claims of Equity Interests) will receive their pro rata share of the proceeds of the purchase price allocated to Doe Investments after payment of unclassified claims, C5-MFB claims and unsecured claims. C5-MFB Properties LLC is represented by: D. Allen Grumbine, Esq. WOMBLE CARLYLE SANDRIDGE & RICE LLP 550 South Main St., Suite 400 Greenville, S.C. 29603 Billy L. Amick is represented by: John A. Walker Jr. Walker & Walker P.C. Knoxville, Tennessee 37901 A copy of the Plan of Liquidation is represented by: http://bankrupt.com/misc/DOE_MOUNTAIN_ds.pdf About Doe Mountain Investments Doe Mountain Investments LLC of Greenville, South Carolina, filed for Chapter 11 bankruptcy (Bankr. D.S.C. Lead Case No. 11-05275) on Aug. 24, 2011. Randy A. Skinner, Esq., at Skinner Law Firm, LLC, serves as the Debtors' counsel. Doe Mountain Investments estimated assets at $10 million to $50 million and debts at $1 million to $10 million. Doe Mountain Investments' affiliate, Doe Mountain Development Group, Inc., filed separate Chapter 11 petitions on the same day. Doe Mountain Development posted assets of $22,001,249 and debts of $6,595,473. DYNEGY INC: Altai Capital Discloses 5.1% Equity Stake ----------------------------------------------------- Altai Capital Management, L.P., and its affiliates filed with the U.S. Securities and Exchange Commission a Schedule 13G disclosing that, as of Dec. 31, 2011, they beneficially own 6,313,432 shares of common stock of Dynegy Inc. representing 5.1% of the shares outstanding. A full-text copy of the filing is available for free at http://is.gd/Sk286d About Dynegy Inc. Through its subsidiaries, Houston, Texas-based Dynegy Inc. (NYSE: DYN) -- http://www.dynegy.com/-- produces and sells electric energy, capacity and ancillary services in key U.S. markets. The power generation portfolio consists of approximately 12,200 megawatts of baseload, intermediate and peaking power plants fueled by a mix of natural gas, coal and fuel oil. In August, Dynegy implemented an internal restructuring that created two units, one owning eight primarily natural gas-fired power generation facilities and another owning six coal-fired plants. Dynegy missed a $43.8 million interest payment Nov. 1, 2011, and said it was discussing options for managing its debt load with certain bondholders. Dynegy Holdings LLC and four other affiliates of Dynegy Inc. sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-38111) Nov. 7 to implement an agreement with a group of investors holding more than $1.4 billion of senior notes issued by Dynegy's direct wholly-owned subsidiary, Dynegy Holdings, regarding a framework for the consensual restructuring of more than $4.0 billion of obligations owed by DH. If this restructuring support agreement is successfully implemented, it will significantly reduce the amount of debt on the Company's consolidated balance sheet. Dynegy Holdings disclosed assets of $13.77 billion and debt of $6.18 billion, while Roseton LLC and Dynegy Danskammer LLC each estimated $100 million to $500 million in assets and debt. Dynegy Holdings and its affiliated debtor-entities are represented in the Chapter 11 proceedings by Sidley Austin LLP as their reorganization counsel. Dynegy and its other subsidiaries are represented by White & Case LLP, who is also special counsel to the Debtor Entities with respect to the Roseton and Danskammer lease rejection issues. Dynegy was advised by Lazard Freres & Co. LLC and the Debtor Entities' financial advisor is FTI Consulting. The Official Committee of Unsecured Creditors has tapped Akin Gump Strauss Hauer & Feld LLP as counsel nunc pro tunc to November 16, 2011. Bankruptcy Creditors' Service, Inc., publishes DYNEGY BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Dynegy Inc. (http://bankrupt.com/newsstand/or 215/945-7000) EASTMAN KODAK: Application to Tap Linklaters as Foreign Counsel --------------------------------------------------------------- Eastman Kodak Co. and its affiliates seek the Court's authority to employ Linklaters LLP as their special foreign counsel nunc pro tunc to the Petition Date. As foreign counsel, Linklaters will: (a) advise the Debtors and assist general bankruptcy counsel with regard to the Debtors' foreign branches and non-U.S. subsidiaries, including without limitation, subsidiaries in Europe, the Middle East, Asia and Latin America; (b) advise the Debtors and assist general bankruptcy counsel with regard to cross-border issues implicating laws of foreign jurisdictions, including local laws applicable to the Debtors' foreign branches and non-U.S. subsidiaries, including without limitation those throughout Europe, the Middle East, Asia and Latin America; (c) advise the Debtors and assist general bankruptcy counsel with regard to issues arising with the foreign branches and non-U.S. subsidiaries as a consequence of the Debtors' Chapter 11 cases; (d) advise the Debtors and assist general bankruptcy counsel with respect to the consideration of the positions of the foreign branches and non-U.S. subsidiaries and any interaction and influence on the Debtors' Chapter 11 cases, including without limitation local laws throughout Europe, the Middle East, Asia and Latin America applicable in the context of insolvency, bankruptcy, restructuring, directors' duties, corporate laws and general commercial and finance issues arising in respect of operation of the global business; (e) advise the Debtors and assist general bankruptcy counsel with respect to English law pension issues; (f) advise the Debtors and assist general bankruptcy counsel with respect to liquidity and financing issues affecting the foreign branches and non-U.S. subsidiaries; (g) advise the Debtors and assist general bankruptcy counsel with respect to asset disposition issues and asset maintenance and enhancement issues outside of the U.S.; (h) advise the Debtors and assist general bankruptcy counsel in formulating and drafting any disclosure statement accompanying any plan of reorganization with respect to foreign law issues and the Debtors' foreign branches and non-U.S. subsidiaries; (i) organize and coordinate the matters in conjunction with Linklaters' teams throughout Europe, the Middle East and Asia and local counsel where Linklaters does not have the relevant local foreign law expertise or geographical coverage; (j) attend meetings with third parties and participate in negotiations; (k) appear before the Bankruptcy Court, any district or appellate courts, and the U.S. Trustee; (l) perform the full range of services; and (m) provide other services as the Debtors may request provided that those services do not rise to the level of "conducting the case" and are not duplicative of the services provided by general bankruptcy counsel. For timekeepers in the London office, the applicable hourly rates in the Chapter 11 proceedings, subject to periodic adjustments to reflect economic and other conditions, plus applicable Value Added Tax, if any, are: Partners GBP670 to GBP775 Counsels GBP600 Managing Associates GBP510 to GBP570 Associates GBP300 to GBP480 Trainee Solicitors GBP200 to GBP290 Paralegals GBP120 to GBP200 Linklaters will also be reimbursed for any necessary out-of-pocket expenses. Rebecca L. Jarvis, Esq., a partner at Linklaters LLP, assures the Court that her firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors or their estates with respect to the matters on which Linklaters is to be employed. Ms. Jarvis discloses that Linklaters received a $350,000 retainer as security for its fees and disbursements. A portion of the Retainer has been applied to outstanding balances existing as of the Petition Date. The Retainer has not been fully exhausted since received and Linklaters intends to apply the Retainer to any outstanding amounts related to the period prior to the Petition Date that were not processed through Linklaters' billing system as of the Petition Date, Ms. Jarvis tells the Court. About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, voluntarily filed for Chapter 11 reorganization (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. are not included in the filing and will continue to operate as usual. The Company, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. In recent years, Kodak has been working to transform itself from a business primarily based on film and consumer photography to a smaller business with a digital growth strategy focused on the commercialization of proprietary digital imaging and printing technologies. Having invested significantly in research and development for over a century, Kodak has a vast portfolio of patents. In 1975, Kodak scientists invented the first digital camera. Kodak then went on to develop a vast collection of patented technologies to enhance digital image capture and processing, technologies that are used in virtually every modern digital camera, smartphone and tablet, as well as numerous other devices. Kodak has 8,900 patent and trademark registrations and applications in the United States, as well as 13,100 foreign patents and trademark registrations or pending registration in roughly 160 countries. Kodak disclosed $5.10 billion in assets and $6.75 billion in liabilities as of Sept. 30, 2011. The net book value of all assets located outside the United States as of Dec. 31, 2011 is $13.5 million. Kodak says it has "significant" legacy liabilities, which include $1.2 billion in non-U.S. pension liabilities, $1.3 billion of Other Post-Employment Benefit ("OPEB") liabilities and roughly $100 million in environmental liabilities. Kodak has outstanding funded debt in an aggregate amount of roughly $1.6 billion, consisting primarily of roughly: (a) $100 million outstanding under the first lien revolving credit facility plus an additional $96 million in face amount of outstanding letters of credit; (b) $750 million in principal amount of second lien secured notes; (c) $400 million in principal amount of convertible notes; and (d) $283 million in principal amount of other senior unsecured debt. Kodak also has roughly $425 million in outstanding trade debt. Kodak sought bankruptcy protection amid near-term liquidity issues brought about by steeper-than-expected declines in Kodak's historically profitable traditional businesses, and cash flow from the licensing and sale of intellectual property being delayed due to litigation tactics employed by a small number of infringing technology companies with strong balance sheets and an awareness of Kodak's liquidity challenges. Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtor. FTI Consulting, Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is the investment banker. Kurtzman Carson Consultants LLC is the claims agent. A group of second lien lenders are represented by Akin Gump Strauss Hauer & Feld LLP. Bankruptcy Creditors' Service, Inc., publishes EASTMAN KODAK BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Eastman Kodak and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). EASTMAN KODAK: Wins Approval for KCC as Administrative Agent ------------------------------------------------------------ Eastman Kodak Co. and its affiliates sought and obtained the Court's authority to employ Kurtzman Carson Consultants LLC as administrative agent nunc pro tunc to the Petition Date. KCC will provide, among other things, these administrative services in connection with the Chapter 11 cases, if and to the extent requested by the Debtors: (a) Assist with the preparation of the Debtors' Schedules of assets and liabilities and statements of financial affairs by inputting and formatting data provided by the Debtors and their professionals; (b) Assist with discrete aspects of the Debtors' claim reconciliation process, such as inputting and formatting data provided by the Debtors; (c) Tabulate votes and perform subscription services as may be requested or required in connection with any and all plans filed by the Debtors and provide ballot reports and related balloting and tabulation services to the Debtors and their professionals; (d) Manage any distribution pursuant to a confirmed plan prior to the effective date of such plan; and (e) Perform other administrative services as may be requested by the Debtors that are not otherwise allowed under the order approving the Section 156(c) Application. Albert Kass, Vice President of Corporate Restructuring Services of KCC, assures the Court that his firm neither holds nor represents any interest adverse to the Debtors' estates and that it is a "disinterested person," as the term is defined in Section 101(14) of the Bankruptcy Code. KCC will receive a $25,000 retainer that will be applied against any fees incurred prior to the Petition Date. About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, voluntarily filed for Chapter 11 reorganization (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. are not included in the filing and will continue to operate as usual. The Company, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. In recent years, Kodak has been working to transform itself from a business primarily based on film and consumer photography to a smaller business with a digital growth strategy focused on the commercialization of proprietary digital imaging and printing technologies. Having invested significantly in research and development for over a century, Kodak has a vast portfolio of patents. In 1975, Kodak scientists invented the first digital camera. Kodak then went on to develop a vast collection of patented technologies to enhance digital image capture and processing, technologies that are used in virtually every modern digital camera, smartphone and tablet, as well as numerous other devices. Kodak has 8,900 patent and trademark registrations and applications in the United States, as well as 13,100 foreign patents and trademark registrations or pending registration in roughly 160 countries. Kodak disclosed $5.10 billion in assets and $6.75 billion in liabilities as of Sept. 30, 2011. The net book value of all assets located outside the United States as of Dec. 31, 2011 is $13.5 million. Kodak says it has "significant" legacy liabilities, which include $1.2 billion in non-U.S. pension liabilities, $1.3 billion of Other Post-Employment Benefit ("OPEB") liabilities and roughly $100 million in environmental liabilities. Kodak has outstanding funded debt in an aggregate amount of roughly $1.6 billion, consisting primarily of roughly: (a) $100 million outstanding under the first lien revolving credit facility plus an additional $96 million in face amount of outstanding letters of credit; (b) $750 million in principal amount of second lien secured notes; (c) $400 million in principal amount of convertible notes; and (d) $283 million in principal amount of other senior unsecured debt. Kodak also has roughly $425 million in outstanding trade debt. Kodak sought bankruptcy protection amid near-term liquidity issues brought about by steeper-than-expected declines in Kodak's historically profitable traditional businesses, and cash flow from the licensing and sale of intellectual property being delayed due to litigation tactics employed by a small number of infringing technology companies with strong balance sheets and an awareness of Kodak's liquidity challenges. Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtor. FTI Consulting, Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is the investment banker. Kurtzman Carson Consultants LLC is the claims agent. A group of second lien lenders are represented by Akin Gump Strauss Hauer & Feld LLP. Bankruptcy Creditors' Service, Inc., publishes EASTMAN KODAK BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Eastman Kodak and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). EASTMAN KODAK: Creditors Committee Has Milbank as Lead Counsel -------------------------------------------------------------- The Official Committee of Unsecured Creditors in Eastman Kodak's cases proposes to retain Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel. The firm may be reached at: Dennis F. Dunne, Esq. Tyson M. Lomazow, Esq. Brian Kinney, Esq. MILBANK, TWEED, HADLEY & McCLOY LLP 1 Chase Manhattan Plaza New York, NY 10005 Tel: (212) 530-5000 Fax: (212) 530-5219 E-mail: ddunne@milbank.com tlomazow@milbank.com bkinney@milbank.com About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, voluntarily filed for Chapter 11 reorganization (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. are not included in the filing and will continue to operate as usual. The Company, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. In recent years, Kodak has been working to transform itself from a business primarily based on film and consumer photography to a smaller business with a digital growth strategy focused on the commercialization of proprietary digital imaging and printing technologies. Having invested significantly in research and development for over a century, Kodak has a vast portfolio of patents. In 1975, Kodak scientists invented the first digital camera. Kodak then went on to develop a vast collection of patented technologies to enhance digital image capture and processing, technologies that are used in virtually every modern digital camera, smartphone and tablet, as well as numerous other devices. Kodak has 8,900 patent and trademark registrations and applications in the United States, as well as 13,100 foreign patents and trademark registrations or pending registration in roughly 160 countries. Kodak disclosed $5.10 billion in assets and $6.75 billion in liabilities as of Sept. 30, 2011. The net book value of all assets located outside the United States as of Dec. 31, 2011 is $13.5 million. Kodak says it has "significant" legacy liabilities, which include $1.2 billion in non-U.S. pension liabilities, $1.3 billion of Other Post-Employment Benefit ("OPEB") liabilities and roughly $100 million in environmental liabilities. Kodak has outstanding funded debt in an aggregate amount of roughly $1.6 billion, consisting primarily of roughly: (a) $100 million outstanding under the first lien revolving credit facility plus an additional $96 million in face amount of outstanding letters of credit; (b) $750 million in principal amount of second lien secured notes; (c) $400 million in principal amount of convertible notes; and (d) $283 million in principal amount of other senior unsecured debt. Kodak also has roughly $425 million in outstanding trade debt. Kodak sought bankruptcy protection amid near-term liquidity issues brought about by steeper-than-expected declines in Kodak's historically profitable traditional businesses, and cash flow from the licensing and sale of intellectual property being delayed due to litigation tactics employed by a small number of infringing technology companies with strong balance sheets and an awareness of Kodak's liquidity challenges. Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtor. FTI Consulting, Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is the investment banker. Kurtzman Carson Consultants LLC is the claims agent. A group of second lien lenders are represented by Akin Gump Strauss Hauer & Feld LLP. Bankruptcy Creditors' Service, Inc., publishes EASTMAN KODAK BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Eastman Kodak and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). EASTMAN KODAK: Wins Nod to Reject Kodak Theatre Sponsorship ----------------------------------------------------------- Eastman Kodak Co. sought the Bankruptcy Court's authority to reject an agreement that provides them naming rights in the entertainment complex commonly known as the "Kodak Theatre." According to report,s U.S. Bankruptcy Judge Allan Gropper in Manhattan approved a request Feb. 16 by the company to end the Kodak Theatre sponsorship agreement to save money as it restructures. The approval comes less than two weeks before the film industry's Oscar awards show, set for Feb. 26. Specifically, the Debtors sought to reject the Sponsorship Agreement, dated October 5, 2000, with CIM/H&M Media L.P., as successor-in-interest to TrizecHahn Hollywood LLC, effective as of January 31, 2012. Eastman Kodak entered into the 20-year contract with TrizecHahn Hollywood LLC in 2000 to get naming rights to the Kodak Theatre, which hosts the annual Academy Awards show. The contract was assumed by CIM/H&H last year, which requires Eastman Kodak to pay approximately $72 million dollars over 20 years for the exclusive naming rights to the Kodak Theatre. The Debtors said in court papers that any continued expense in maintaining the Contract and attempting to market the Contract would likely outweigh, if not eclipse, any benefit in attempting to identify a potential acquirer of the Contract, and unnecessarily deplete assets of their estates to the detriment of their creditors. The proposed rejection of the contract drew flak from CIM/H&H, saying Eastman Kodak should not be allowed to give up naming rights to the Kodak Theatre. CIM/H&H said the sponsorship agreement is not an "executory contract" and that backing out of the contract is "not only legally impermissible but practically impossible." CIM/H&H said it is "too late" for Eastman Kodak to back out in light of the 2012 Oscars, which will be held less than three weeks away. "Disassociating the Kodak name from the theater before the Academy Awards show, the major event, is not practically feasible," CIM/H&H said in court papers. Randy Bernstein, president and chief executive officer of Premier Partnerships, agreed that it "would be impossible to disassociate the Kodak name with the Kodak Theater overnight." "For 12 years, the CIM and its predecessors worked with Kodak to engrain the Kodak Theatre name into the public's mind," Mr. Bernstein said in a declaration in support of CIM/H&H's objection. "They have due regard for the interest of their creditor body, and they just don't want to pay this money for the next nine years," Judge Gropper said at a court hearing, according to Bloomberg News. CIM is represented by: Thomas Leanse, Esq. Jessica Mickelsen, Esq. KATTEN MUCHIN ROSENMAN LLP 2029 Century Park East, Suite 2600 Los Angeles, CA 90067-3012 E-mail: thomas.leanse@kattenlaw.com jessica.mickelsen@kattenlaw.com About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, voluntarily filed for Chapter 11 reorganization (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. are not included in the filing and will continue to operate as usual. The Company, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. In recent years, Kodak has been working to transform itself from a business primarily based on film and consumer photography to a smaller business with a digital growth strategy focused on the commercialization of proprietary digital imaging and printing technologies. Having invested significantly in research and development for over a century, Kodak has a vast portfolio of patents. In 1975, Kodak scientists invented the first digital camera. Kodak then went on to develop a vast collection of patented technologies to enhance digital image capture and processing, technologies that are used in virtually every modern digital camera, smartphone and tablet, as well as numerous other devices. Kodak has 8,900 patent and trademark registrations and applications in the United States, as well as 13,100 foreign patents and trademark registrations or pending registration in roughly 160 countries. Kodak disclosed $5.10 billion in assets and $6.75 billion in liabilities as of Sept. 30, 2011. The net book value of all assets located outside the United States as of Dec. 31, 2011 is $13.5 million. Kodak says it has "significant" legacy liabilities, which include $1.2 billion in non-U.S. pension liabilities, $1.3 billion of Other Post-Employment Benefit ("OPEB") liabilities and roughly $100 million in environmental liabilities. Kodak has outstanding funded debt in an aggregate amount of roughly $1.6 billion, consisting primarily of roughly: (a) $100 million outstanding under the first lien revolving credit facility plus an additional $96 million in face amount of outstanding letters of credit; (b) $750 million in principal amount of second lien secured notes; (c) $400 million in principal amount of convertible notes; and (d) $283 million in principal amount of other senior unsecured debt. Kodak also has roughly $425 million in outstanding trade debt. Kodak sought bankruptcy protection amid near-term liquidity issues brought about by steeper-than-expected declines in Kodak's historically profitable traditional businesses, and cash flow from the licensing and sale of intellectual property being delayed due to litigation tactics employed by a small number of infringing technology companies with strong balance sheets and an awareness of Kodak's liquidity challenges. Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtor. FTI Consulting, Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is the investment banker. Kurtzman Carson Consultants LLC is the claims agent. A group of second lien lenders are represented by Akin Gump Strauss Hauer & Feld LLP. Bankruptcy Creditors' Service, Inc., publishes EASTMAN KODAK BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Eastman Kodak and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). EDIETS.COM INC: Appoints Thomas Connerty as President and CEO ------------------------------------------------------------- eDiets.com, Inc., announced that Thomas Connerty, a member of the Board of Directors since April 2011, will assume the position of President and Chief Executive Officer. The Company also announced the resignation of President and Chief Executive Officer Kevin McGrath, effective immediately. Mr. McGrath will continue to serve as an advisor to the Company until March 1, 2012, to assist with transition matters. "On behalf of the Board of Directors, we want to thank Kevin for his contributions to eDiets," said Kevin Richardson, the Company's Chairman. "For the past three years, Kevin has led the Company through an unusually challenging environment, and we wish him well in his future endeavors." Mr. Richardson continued, "We are fortunate to have a qualified and experienced successor within our Board. Tom brings a deep background in the health and wellness industry and direct response marketing and we look forward to working with him in his new role." Mr. Connerty, 49, has over 25 years of expertise in direct response marketing with leading consumer branded companies. He formerly held a number of senior positions with NutriSystem, Inc, including Chief Marketing Officer from November 2004 to May 2008, Executive Vice President from April 2005 to May 2008 and Executive Vice President of Program Development from July 2006 to May 2008. From 1999 to 2004, Mr. Connerty served as Vice President of Marketing at the Nautilus Group, where he played a key role in building the Bowflex division into one of the most profitable and recognizable names in the direct response home fitness market. Prior to Nautilus, Mr. Connerty served as the Vice President of Broadcast for the Home Shopping Network. Tom Connerty said, "I look forward to working with our team to address the challenges ahead and profitably grow the business. eDiets offers consumers safe and cost effective solutions to achieve their weight loss goals, and I am excited to lead the Company as we expand our reach and maximize brand potential. Both the Board and our entire management team are committed to significantly enhancing the value of eDiets for all our stakeholders." "My time at eDiets has been challenging, yet rewarding," said Kevin McGrath. "We have significantly improved the cost structure and focus of all aspects of the business. The last piece of the equation is to continue to ramp sales for meal delivery. I can think of no one with more relevant skills in this regard than my successor, Tom Connerty. I wish him all the success in the world." On Feb. 15, 2012, Prides Capital Fund I, L.P., the majority stockholder in eDiets.com, Inc., issued an unconditional guarantee of certain Company payment obligations to Paymentech, LLC, the Company's credit card payments processor. The maximum amount of Company indebtedness guaranteed by Prides is $260,000. Also as of Feb. 15, 2012, the Company entered into a letter agreement with Prides pursuant to which the Company undertook certain obligations in consideration of the Guarantee. Among other things, the Letter Agreement obligates the Company to pay Prides (i) an annual credit support fee equal to 10% of the maximum amount of Company indebtedness guaranteed by Prides under the Guarantee and (ii) a monthly credit support fee equal to 0.4167% of the maximum amount of Company indebtedness guaranteed by Prides under the Guarantee. The Company's obligations under the Letter Agreement will terminate upon expiration or termination of the Guarantee. About eDiets eDiets.com, Inc. is a leading provider of personalized nutrition, fitness and weight-loss programs. eDiets currently features its award-winning, fresh-prepared diet meal delivery service as one of the more than 20 popular diet plans sold directly to members on its flagship site, http://www.eDiets.com eDiets.com reported a net loss of $43.3 million on $23.4 million of revenues for 2010, compared with a net loss of $12.1 million on $18.1 million of revenues for 2009. The Company also reported a net loss of $2.73 million on $17.42 million of total revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $42.01 million on $16.46 million of total revenue for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $3.96 million in total assets, $4.27 million in total liabilities, and a $314,000 total stockholders' deficit. Ernst & Young LLP, in Boca Raton, Florida, expressed substantial doubt about eDiets.com's ability to continue as a going concern. The independent auditors noted that the Company has incurred recurring operating losses and has a working capital deficiency. The Company said that in light of the results of its operations, management has and intends to continue to evaluate various possibilities, including raising additional capital through the issuance of common or preferred stock, securities convertible into common stock, or secured or unsecured debt, selling one or more lines of business, or all or a portion of the Company's assets, entering into a business combination, reducing or eliminating operations, liquidating assets, or seeking relief through a filing under the U.S. Bankruptcy Code. ELEPHANT & CASTLE: Wants to Employ Verdolino & Lowey as Accountant ------------------------------------------------------------------ Massachusetts Elephant & Castle Group, Inc., asks the Court for entry of an order authorizing the employment of Verdolino & Lowey, P.C., to provide tax, accounting and other services necessary for the winding down of the Debtors' businesses. Due to the closing of the sale of the assets of the Debtors other than Repechage Investments Limited (RIL), the focus of the bankruptcy case of the Debtors has turned towards accomplishing an efficient wind-down of the estate. Currently, the non-RIL Debtors are preparing a form of liquidating plan which they anticipate filing to accomplish their exit from chapter 11. As a result, the non-RIL Debtors anticipate that the role of their financial advisor Phoenix Management will diminish and that they will no longer require the services of Wolf & Company. Instead, the non-RIL Debtors anticipate the benefits of hiring Verdolino & Lowey as the plan currently being drafted contemplates that firm's ultimate involvement in winding up the estates and the non-RIL Debtors would benefit from accelerating that involvement so that necessary tasks can be accomplished efficiently and effectively. The professional services which Verdolino & Lowey will render include, but are not limited to, the following: a) reconciling the non-RIL Debtors' various cash accounts; b) closing the non-RIL Debtors' monthly books; c) working with and reporting to the non-RIL Debtors' counsel; d) preparing the monthly operating reports required by the Office of the United States Trustee; e) recording and paying vendors and other bills; f) causing all meals, payroll, income and other tax returns to be filed and paid; g) preparing monthly and YTD balance sheets and profit and loss statements; h) reconciling proofs of claim filed against the non-RIL Debtors; i) providing any remaining tax services that are necessary; j) assisting to terminate the non-RIL Debtors' existing 401(k) plan; k) acting as Escrow Agent as successor to PMCM 2, LLC, an affiliate of Phoenix Management; and l) any and all other duties required by the Debtors, the Committee, U.S. Trustee and/or by the Court. Verdolino & Lowey's rate for work of this nature currently ranges from $80 to $405. These hourly rates are subject to periodic adjustments to reflect economic and other conditions. Verdolino & Lowey submits that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Massachusetts Elephant & Castle Group Boston-based Massachusetts Elephant & Castle Group and its affiliates operates 21 British-style restaurant pubs in the U.S. and Canada. The chain, with 10 locations in the U.S., generated revenue of $47.5 million in 2010, throwing off $3.9 million of earnings before interest, taxes, depreciation, amortization, and foreign exchange gains or losses. Elephant & Castle filed for Chapter 11 protection (Bankr. D. Mass. Lead Case No. 11-16155) on June 28, 2011. Bankruptcy Judge Henry J. Boroff presides over the case. Repechage Investments' estimated assets and debts at $10 million to $50 million. Other Debtors' estimated assets and debts at $0 to $10 million. Eckert Seamans Chein & Mellott, LLC, represent the Debtors as counsel and BellMark Partners, LLC as financial advisor. Epiq Bankruptcy Solutions, LLC as claims, noticing and balloting agent. Phoenix Management serves as the Company's Chief Restructuring Advisor. FTI Consulting, Inc., is the Official Committee of Unsecured Creditors' financial advisors. Goulston & Storrs, P.C., is the Committee's counsel. ENER1 INC: Has Final OK to Obtain $20MM DIP Facility From Bzinfin ----------------------------------------------------------------- On Feb. 16, 2012, the U.S. Bankruptcy Court for the Southern District of New York granted Ener1, Inc. final authorization to obtain up to $20 million in Debtor-in-Possession Revolving Loan Facility from Bzinfin S.A. As a result of the Bankruptcy Court's related Order, the entire $20 million of the DIP Facility is available to the Company, subject to the terms and conditions of the DIP Facility and the order of the Bankruptcy Court. As of Feb. 17, 2012, the Company has borrowed approximately $13 million under the DIP Facility. Bzinfin S.A., as lender and agent, has agreed to provide a revolving facility not to exceed $20 million, pursuant to the terms of the DIP Loan Agreement dated Jan. 27, 2012. Borrowings under the DIP Loan Agreement bear interest at LIBOR plus 7% per annum and mature 90 days after the Petition Date, except that borrowings may be required to be repaid earlier in the case of an event of default under the DIP Loan Agreement. A portion of the borrowings under the DIP loan will be used to repay the $6.5 million outstanding under the Bridge Loan Agreement dated as of Nov. 16, 2011. In addition to being a lender under the Bridge Loan Agreement, Bzinfin is an affiliate of the Company by virtue of being the beneficial owner, directly and indirectly through its wholly-owned subsidiary, Ener1 Group, Inc., of approximately 41% of the Company's outstanding common stock as of Sept. 14, 2011. Bzinfin is also the lender under a Line of Credit Agreement with the Company, under which $11.4 million in aggregate principal amount and accrued and unpaid interest was outstanding as of Sept. 12, 2011. Bzinfin is controlled by Boris Zingarevich, who is a director of Ener1. About Ener1 Ener1 Inc. (OTC: HEVV) -- http://www.ener1.com/-- is a New York- based developer of compact, lithium-ion-powered energy storage solutions for applications in the electric utility, transportation and industrial electronics markets. It has three business lines: EnerDel, an 80.5% owned subsidiary, which is 19.5% owned by Delphi, develops Li-ion batteries, battery packs and components such as Li-ion battery electrodes and lithium electronic controllers for lithium battery packs; EnerFuel develops fuel cell products and services; and NanoEner develops technologies, materials and equipment for nano-manufacturing. Ener1, which received a $118 million U.S. Energy Department grant to make electric-car batteries, filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 12-10299) on Jan. 26, 2012, to implement a prepackaged plan of reorganization. The Plan has been unanimously accepted by all of Ener1's impaired creditors. Under its restructuring, the Debtor will reduce funded debt from $91 million to $46 million, under a plan where debt holders will receive newly issued debt and equity. The plan provides for a restructuring of the Company's long-term debt and the infusion of up to $81 million of equity funding. Of the $81 million, $50 million will be provided periodically by Bzinfin S.A. over a period of 24 months following the effective date of the plan. Bzinfin and other parties will invest their pro rata share of up to $31 million through the purchase of preferred stock from time to time through 2013 to 2015. The claims of Ener1's general unsecured creditors will be unimpaired and paid by the Company under the restructuring plan. All of the Company's existing common stock will be cancelled, the long-term debt holders will be receiving a combination of cash, a new term loan and new common stock in exchange for their claims, and new preferred stock will be issued to the provider of the post-petition and exit funding. Suppliers to the Company will be paid under normal terms for goods and services provided after the Chapter 11 filing date. Ener1 will seek approval of the prepackaged reorganization plan at Feb. 27 confirmation hearing. Judge Martin Glenn oversees the case. Reed Smith LLP is Ener1's legal adviser and its financial adviser is Houlihan Lokey Capital Inc. The Garden City Group serves as its claims and noticing agent. In its petition, Ener1 estimated $73,900,000 in assets and $90,538,529 in liabilities. The petition was signed by Alex Sorokin, interim chief executive officer. Bzinfin, S.A., is represented in the case by Andrew E. Balog, Esq., and John H. Bae, Esq., at Greenberg Traurig, LLP. Counsel to Goldman Sachs Palmetto State Credit Fund, L.P., and Liberty Harbor Special Investments, LLC, are Gary Holtzer, Esq., and Ronit Berkovich, Esq., at Weil, Gotshal & Manges LLP. ENERGY CONVERSION: March 14 Hearing on Cash Collateral Use ---------------------------------------------------------- Energy Conversion Devices, Inc., and United Solar Ovonic LLC will return to the Bankruptcy Court March 14, 2012 at 12:00 noon for a final hearing on their request to use cash collateral. In order to avoid immediate and irreparable harm, USO on Feb. 17 won interim authority to use cash collateral of ECD up to a maximum of $4,000,000, through the date of the final hearing on the Motion. ECD is granted a replacement lien on USO's postpetition cash, negotiable instruments, documents of title, securities, deposit accounts or other cash equivalents and related proceeds equal in priority and validity to ECD's prepetition lien on USO's cash collateral. To avoid immediate and irreparable harm, ECD may make advances to USO of up to $636,000 through the date of the Final Hearing. ECD is authorized to fund USO postpetition on an administrative expense basis, with a priority under 11 U.S.C. Sec. 503(b)(1). The Interim Cash Collateral Order also provides that USO may advance up to $110,000 to its foreign subsidiaries through the date of the Final Hearing. USO has foreign subsidiaries in Canada, Mexico, Italy, Germany, France and Spain for which it provides some funding and for which the subsidiaries maintain foreign bank accounts. ECD has said it is aware that there might be disputes between the ECD estate and the USO estate on interdebtor issues, such as the proper characterization of ECD's advances to USO, whether ECD's claim against USO should be equitably subordinated, whether there should be substantive consolidation of the Debtors' estates and potentially other issues. ECD has advanced roughly $800 million to USO since 2003. At present, ECD and USO reflect that these advances were loans from ECD to USO, and debts owed by USO to ECD. At other times, these advances from ECD to USO have been treated on the Debtors' books as capital contributions from ECD to USO. Since ECD and USO have historically published consolidated financial statements, the separate accounting for the transaction is not reflected in historical published financial statements. The roughly $800 million obligation consists of between $300 million to $400 million advanced to fund capital expenditures, between $300 to $400 million advanced to fund losses at USO and between $60 million to $70 million in accrued interest. As of Dec. 19, 2011, ECD and USO entered into a $5,000,000 secured Line of Credit Agreement to be used to fund USO's working capital requirements. The obligations under the Line of Credit Agreement are secured by a security interest in certain of USO's working capital assets, including without limitation, accounts, inventory and other receivables. As of the Petition Date, the outstanding balance under the Line of Credit Agreement is the full limit under the line of credit, $5,000,000. ECD consented to USO's use of cash collateral without validation of its lien or priority. ECD has said any dispute will be resolved by a consensual plan of reorganization. About Energy Conversion Devices Energy Conversion Devices, Inc., and United Solar Ovonic LLC filed for Chapter 11 bankruptcy (Bankr. E.D. Mich. Case Nos. 12-43166 and 12-_____) on Feb. 14, 2012. Judge Thomas J. Tucker presides over the case. Honigman Miller Schwartz and Cohn LLP serves as the Debtors' counsel. Covington & Burling serves as special counsel. Kurtzman Carson Consultants serves as claims and noticing agent. The petition was signed by William Christopher Andrews, chief financial officer and executive vice president. ECD and USO consider themselves leaders in material science and renewable energy technologies, with a proven track record of successfully commercializing their technology innovations. ECD is a publicly traded company listed on the NASDAQ Global Select Market under the ticker symbol "ENER." ECD is primarily a holding company that operates, through its subsidiaries, businesses involving: (i) the manufacture and sale of flexible, lightweight thin-film photovoltaic products through its wholly owned subsidiary USO; and (ii) the installation and servicing of PV systems through its wholly owned subsidiary Solar Integrated Technologies, Inc. SIT has initiated a chapter 7 proceeding (Bankr. E.D. Mich. Case No. 12-_____) that is not jointly administered with ECD and USO's Chapter 11 cases. A multitude of industry, market and Debtors-specific factors converged to force the Debtors to initiate the Chapter 11 cases, including (i) explosive growth in manufacturing capacity of competing solar products around the world, particularly low-cost commodity PV products, which has caused a precipitous decline in PV product pricing; (ii) substantial disruptions in key European markets due to abrupt reductions in solar incentives, which have eroded underlying PV system economics; (iii) contraction of available credit for the Debtors' customers for financing PV projects; (iv) the Debtors' overleveraged balance sheet driven principally by ECD's unsecured notes due in June 2013, which are impairing the Debtors' financial flexibility and going-concern credibility; (v) legacy costs that were incurred under industry conditions that have changed dramatically and are now unnecessary and burdensome to the business, and (vi) uncertain financing to invest in technology and product improvements that are critical to retaining and expanding the Debtors' competitiveness. The Debtors initiated the Chapter 11 Cases to maximize value for its creditors by attracting new capital through a sale of all or substantially all of the assets of USO and ECD's other assets. ENERGY CONVERSION: Taps Honigman Miller as Bankruptcy Counsel ------------------------------------------------------------- Energy Conversion Devices, Inc., and United Solar Ovonic LLC seek Bankruptcy Court authority to employ Honigman Miller Schwartz and Cohn LLP as their general bankruptcy counsel in connection with their Chapter 11 cases. Honigman has represented ECD and USO on a variety of corporate and other matters for more than 10 years. The Debtors believe Honigman is able to represent them in their Chapter 11 cases in a most efficient and timely manner. ECD is aware that there might be disputes between the ECD estate and the USO estate on interdebtor issues, such as the proper characterization of ECD's advances to USO, whether ECD's claim against USO should be equitably subordinated, whether there should be substantive consolidation of the Debtors' estates and potentially other issues. ECD has advanced roughly $800 million to USO since 2003. As of Dec. 19, 2011, ECD and USO also entered into a $5,000,000 secured Line of Credit Agreement to be used to fund USO's working capital requirements. The obligations under the Line of Credit Agreement are secured by a security interest in certain of USO's working capital assets, including without limitation, accounts, inventory and other receivables. As of the Petition Date, the outstanding ECD said any dispute will be resolved by a consensual reorganization plan. Aware of the potential for disputes on these issues, ECD and Honigman have agreed that, if there are actual disputes among the Debtors' estates regarding the proper characterization of the advances from ECD to USO or other issues, Honigman will not represent any of the Debtors in such disputes. Instead, special counsel or the unsecured creditors committees of each estate will handle such disputes. With agreement of the parties and the Court, Honigman could serve as a resource by producing documentation and attempting to facilitate consensual resolutions of the disputes. Judy B. Calton, Esq., a partner at Honigman, attests that neither Honigman, nor any of its partner or associate, has any connection with the Debtors, their creditors, any party in interest, their attorneys or accountants, the United States Trustee or the employees of the Unites States Trustee. She may be reached at: Judy B. Calton, Esq., HONIGMAN MILLER SCHWARTZ AND COHN LLP 2290 First National Building 660 Woodward Avenue Detroit, MI 48226 Tel: 313-465-7344 E-mail: jcalton@honigman.com An affidavit filed by Honigman with the Court indicates that: -- the Debtors' known bondholders and indenture trustee include (a) Angelo, Gordon; (b) Wolverine Asset Management; and (c) Bank of New York Mellon Trust Co.; And -- Plante & Moran PLLC is serving as financial advisors to the Debtors. Deloitte Tax LLP provides tax services to the Debtors. Alix Partners is serving as financial advisors to the Debtor. Honigman's current standard hourly rates are $210 to $770 for partners, $210 to $300 for associates, and $135 to $245 for legal assistants. The professionals at Honigman who are expected to work on the representation of the Debtors and their standard hourly rates include: Robert B. Weiss (partner) $650 Donald J. Kunz (partner) $565 Judy B. Calton (partner) $560 Gregory R. Schermerhorn (partner) $400 Aaron M. Silver (partner) $375 Daniel N. Adams (associate) $290 Amy Floraday (associate) $225 Kelsey Switzer (associate) $225 LeeAnn Provenzano (legal assistant) $200 On Oct. 19, 2011, Honigman received a $200,000 retainer to cover fees and expenses after that date, but received payment of its ongoing fees and expenses to a certain extent after that date while continuing to hold the retainer. As a result, Honigman holds a retainer of $38,836.13 for services to be rendered in the Debtors' Chapter 11 cases and as an advance against expenses incurred. Any other payments Honigman received in the 90 days before the Petition Date were in the ordinary course of business. About Energy Conversion Devices Energy Conversion Devices, Inc., and United Solar Ovonic LLC filed for Chapter 11 bankruptcy (Bankr. E.D. Mich. Case Nos. 12-43166 and 12-_____) on Feb. 14, 2012. Judge Thomas J. Tucker presides over the case. Covington & Burling serves as special counsel. Kurtzman Carson Consultants serves as claims and noticing agent. The petition was signed by William Christopher Andrews, chief financial officer and executive vice president. ECD and USO consider themselves leaders in material science and renewable energy technologies, with a proven track record of successfully commercializing their technology innovations. ECD is a publicly traded company listed on the NASDAQ Global Select Market under the ticker symbol "ENER." ECD is primarily a holding company that operates, through its subsidiaries, businesses involving: (i) the manufacture and sale of flexible, lightweight thin-film photovoltaic products through its wholly owned subsidiary USO; and (ii) the installation and servicing of PV systems through its wholly owned subsidiary Solar Integrated Technologies, Inc. SIT has initiated a chapter 7 proceeding (Bankr. E.D. Mich. Case No. 12-_____) that is not jointly administered with ECD and USO's Chapter 11 cases. A multitude of industry, market and Debtors-specific factors converged to force the Debtors to initiate the Chapter 11 cases, including (i) explosive growth in manufacturing capacity of competing solar products around the world, particularly low-cost commodity PV products, which has caused a precipitous decline in PV product pricing; (ii) substantial disruptions in key European markets due to abrupt reductions in solar incentives, which have eroded underlying PV system economics; (iii) contraction of available credit for the Debtors' customers for financing PV projects; (iv) the Debtors' overleveraged balance sheet driven principally by ECD's unsecured notes due in June 2013, which are impairing the Debtors' financial flexibility and going-concern credibility; (v) legacy costs that were incurred under industry conditions that have changed dramatically and are now unnecessary and burdensome to the business, and (vi) uncertain financing to invest in technology and product improvements that are critical to retaining and expanding the Debtors' competitiveness. The Debtors initiated the Chapter 11 Cases to maximize value for its creditors by attracting new capital through a sale of all or substantially all of the assets of USO and ECD's other assets. ENERGY CONVERSION: Covington & Burling Tapped as Special Counsel ---------------------------------------------------------------- Energy Conversion Devices, Inc., and United Solar Ovonic LLC seek authority from the Bankruptcy Court to employ Covington & Burling LLP as special counsel. Covington has represented the Debtors since 2007 in a wide spectrum of matters. Since 2007, Covington has maintained a dedicated core group of attorneys that have worked closely with the Debtors, each other, and the Debtors' other attorneys and professionals, to provide coordinated, non-duplicative legal services for all assigned matters. Covington has served as counsel to the Debtors on many significant corporate transactions and has advised the Debtors with respect to a variety of matters, including: (a) financing transactions and securities offerings; (b) mergers and acquisitions and divestiture transactions; (c) securities law disclosure and other compliance matters; (d) tax advice; (e) corporate governance matters; (f) employee benefits and executive compensation matters; (g) intellectual property matters; (h) regulatory advice; and (i) restructuring planning. The Debtors will employ Covington to, among others: (i) assist in the potential disposition of assets and other complex commercial transactions; and (ii) provide legal advice regarding securities law compliance, corporate governance, tax, employee benefits, intellectual property and regulatory compliance. ECD is aware that there might be disputes between the ECD estate and the USO estate on interdebtor issues, such as the proper characterization of ECD's advances to USO, whether ECD's claim against USO should be equitably subordinated, whether there should be substantive consolidation of the Debtors' estates and potentially other issues. ECD has advanced roughly $800 million to USO since 2003. As of Dec. 19, 2011, ECD and USO also entered into a $5,000,000 secured Line of Credit Agreement to be used to fund USO's working capital requirements. The obligations under the Line of Credit Agreement are secured by a security interest in certain of USO's working capital assets, including without limitation, accounts, inventory and other receivables. As of the Petition Date, the outstanding ECD said any dispute will be resolved by a consensual reorganization plan. Aware of the potential for disputes on these issues, ECD and Honigman Miller Schwartz and Cohn LLP, its general bankruptcy counsel, have agreed that, if there are actual disputes among the Debtors' estates regarding the proper characterization of the advances from ECD to USO or other issues, Honigman will not represent any of the Debtors in such disputes. Instead, special counsel or the unsecured creditors' committees of each estate will handle such disputes. Covington has stated its desire and willingness to act in this case and render the necessary professional services as attorneys for the Debtors. W. Andrew Jack, Esq., a partner at Covington, attests that his firm neither holds nor represents interests adverse to the Debtors with respect to the matters for which it will be retained. Mr. Jack may be reached at: W. Andrew Jack, Esq. COVINGTON & BURLING LLP 1201 Pennsylvania Avenue, NW Washington, DC 20004-2401 Tel: 202-662-5232 E-mail: ajack@cov.com The current hourly rates charged by Covington for its services to be provided on an hourly basis, are: Partners $600 to $965 per hour Counsel $600 to $965 per hour Associates $280 to $595 per hour Paraprofessionals $200 to $360 per hour On Oct. 19, 2011, Covington received a retainer of $100,000 as a prepayment for services to be rendered or expenses to be incurred. Covington received payment of its ongoing post-retainer prepetition fees and expenses while continuing to hold the retainer. As a result, Covington holds a retainer of $100,000 for services to be rendered in the Debtors' chapter 11 cases and as an advance against expenses incurred. About Energy Conversion Devices Energy Conversion Devices, Inc., and United Solar Ovonic LLC filed for Chapter 11 bankruptcy (Bankr. E.D. Mich. Case Nos. 12-43166 and 12-_____) on Feb. 14, 2012. Judge Thomas J. Tucker presides over the case. Honigman Miller Schwartz and Cohn LLP serves as the Debtors' counsel. Kurtzman Carson Consultants serves as claims and noticing agent. The petition was signed by William Christopher Andrews, chief financial officer and executive vice president. ECD and USO consider themselves leaders in material science and renewable energy technologies, with a proven track record of successfully commercializing their technology innovations. ECD is a publicly traded company listed on the NASDAQ Global Select Market under the ticker symbol "ENER." ECD is primarily a holding company that operates, through its subsidiaries, businesses involving: (i) the manufacture and sale of flexible, lightweight thin-film photovoltaic products through its wholly owned subsidiary USO; and (ii) the installation and servicing of PV systems through its wholly owned subsidiary Solar Integrated Technologies, Inc. SIT has initiated a chapter 7 proceeding (Bankr. E.D. Mich. Case No. 12-_____) that is not jointly administered with ECD and USO's Chapter 11 cases. A multitude of industry, market and Debtors-specific factors converged to force the Debtors to initiate the Chapter 11 cases, including (i) explosive growth in manufacturing capacity of competing solar products around the world, particularly low-cost commodity PV products, which has caused a precipitous decline in PV product pricing; (ii) substantial disruptions in key European markets due to abrupt reductions in solar incentives, which have eroded underlying PV system economics; (iii) contraction of available credit for the Debtors' customers for financing PV projects; (iv) the Debtors' overleveraged balance sheet driven principally by ECD's unsecured notes due in June 2013, which are impairing the Debtors' financial flexibility and going-concern credibility; (v) legacy costs that were incurred under industry conditions that have changed dramatically and are now unnecessary and burdensome to the business, and (vi) uncertain financing to invest in technology and product improvements that are critical to retaining and expanding the Debtors' competitiveness. The Debtors initiated the Chapter 11 Cases to maximize value for its creditors by attracting new capital through a sale of all or substantially all of the assets of USO and ECD's other assets. ENERGY CONVERSION: Hires Kurtzman Carson as Claims Agent -------------------------------------------------------- Energy Conversion Devices, Inc., and United Solar Ovonic LLC have identified hundreds of entities or persons to which notice must be given for various purposes, making utilization of an outside claims and noticing agent appropriate in their cases. Noticing and receiving, docketing and maintaining proofs of claim would impose heavy administrative and other burdens upon the Court and the Office of the Clerk of the United States Bankruptcy Court for the Eastern District of Michigan. Preparing and serving the notices on all such creditors and parties in interest and docketing and maintaining the large number of proofs of claim that may be filed in the cases would strain the resources of the Clerk's Office. In this regard, the Debtors seek Court authority to employ Kurtzman Carson Consultants LLC as Claims, Noticing and Balloting Agent. The Debtors said that if KCC is not engaged, then they may have to divert substantial manpower to, or employ other professionals to, among other tasks, manage the claims process and implement the plan solicitation process. Under the parties' engagement agreement, KCC is to receive a $40,000 retainer. Albert Kass, Vice President of Corporate Restructuring Services of KCC, attests that the officers and employees of KCC (a) do not have any material adverse connection with the Debtors, the Debtors' creditors or any other party in interest or their attorneys and accountants, the United States Trustee or any person employed in the office of the United States Trustee; and (b) do not hold or represent an interest materially adverse to the Debtors' estates. Moreover, KCC is a "disinterested person" as that term is defined in section 101(14) of the Bankruptcy Code, as modified by section 1107(b) of the Bankruptcy Code. About Energy Conversion Devices Energy Conversion Devices, Inc., and United Solar Ovonic LLC filed for Chapter 11 bankruptcy (Bankr. E.D. Mich. Case Nos. 12-43166 and 12-_____) on Feb. 14, 2012. Judge Thomas J. Tucker presides over the case. Honigman Miller Schwartz and Cohn LLP serves as the Debtors' counsel. Covington & Burling serves as special counsel. The petition was signed by William Christopher Andrews, chief financial officer and executive vice president. ECD and USO consider themselves leaders in material science and renewable energy technologies, with a proven track record of successfully commercializing their technology innovations. ECD is a publicly traded company listed on the NASDAQ Global Select Market under the ticker symbol "ENER." ECD is primarily a holding company that operates, through its subsidiaries, businesses involving: (i) the manufacture and sale of flexible, lightweight thin-film photovoltaic products through its wholly owned subsidiary USO; and (ii) the installation and servicing of PV systems through its wholly owned subsidiary Solar Integrated Technologies, Inc. SIT has initiated a chapter 7 proceeding (Bankr. E.D. Mich. Case No. 12-_____) that is not jointly administered with ECD and USO's Chapter 11 cases. A multitude of industry, market and Debtors-specific factors converged to force the Debtors to initiate the Chapter 11 cases, including (i) explosive growth in manufacturing capacity of competing solar products around the world, particularly low-cost commodity PV products, which has caused a precipitous decline in PV product pricing; (ii) substantial disruptions in key European markets due to abrupt reductions in solar incentives, which have eroded underlying PV system economics; (iii) contraction of available credit for the Debtors' customers for financing PV projects; (iv) the Debtors' overleveraged balance sheet driven principally by ECD's unsecured notes due in June 2013, which are impairing the Debtors' financial flexibility and going-concern credibility; (v) legacy costs that were incurred under industry conditions that have changed dramatically and are now unnecessary and burdensome to the business, and (vi) uncertain financing to invest in technology and product improvements that are critical to retaining and expanding the Debtors' competitiveness. The Debtors initiated the Chapter 11 Cases to maximize value for its creditors by attracting new capital through a sale of all or substantially all of the assets of USO and ECD's other assets. ENERGY CONVERSION: Wants Schedules Filing Deadline Extended ----------------------------------------------------------- Energy Conversion Devices, Inc., and United Solar Ovonic LLC ask the Bankruptcy Court for more time to file their (a) schedules of assets and liabilities, current income and expenditures, and executory contracts and unexpired leases; (b) statement of financial affairs; and (c) list of equity security holders. Pursuant to Bankruptcy Rule 1007(b) and (c), a chapter 11 debtor is required to file with the court its Schedules and Statements within 14 days after the Petition Date. The Debtors want that deadline extended through March 15, 2012, without prejudice to their right to seek further extensions if necessary. The Debtors said they have roughly 4,983 potential creditors, including current and former employees. Further, the conduct and operation of the Debtors? business operations require the Debtors to maintain voluminous books and records and complex accounting systems. About Energy Conversion Devices Energy Conversion Devices, Inc., and United Solar Ovonic LLC filed for Chapter 11 bankruptcy (Bankr. E.D. Mich. Case Nos. 12-43166 and 12-_____) on Feb. 14, 2012. Judge Thomas J. Tucker presides over the case. Honigman Miller Schwartz and Cohn LLP serves as the Debtors' counsel. Covington & Burling serves as special counsel. Kurtzman Carson Consultants serves as claims and noticing agent. The petition was signed by William Christopher Andrews, chief financial officer and executive vice president. ECD and USO consider themselves leaders in material science and renewable energy technologies, with a proven track record of successfully commercializing their technology innovations. ECD is a publicly traded company listed on the NASDAQ Global Select Market under the ticker symbol "ENER." ECD is primarily a holding company that operates, through its subsidiaries, businesses involving: (i) the manufacture and sale of flexible, lightweight thin-film photovoltaic products through its wholly owned subsidiary USO; and (ii) the installation and servicing of PV systems through its wholly owned subsidiary Solar Integrated Technologies, Inc. SIT has initiated a chapter 7 proceeding (Bankr. E.D. Mich. Case No. 12-_____) that is not jointly administered with ECD and USO's Chapter 11 cases. A multitude of industry, market and Debtors-specific factors converged to force the Debtors to initiate the Chapter 11 cases, including (i) explosive growth in manufacturing capacity of competing solar products around the world, particularly low-cost commodity PV products, which has caused a precipitous decline in PV product pricing; (ii) substantial disruptions in key European markets due to abrupt reductions in solar incentives, which have eroded underlying PV system economics; (iii) contraction of available credit for the Debtors' customers for financing PV projects; (iv) the Debtors' overleveraged balance sheet driven principally by ECD's unsecured notes due in June 2013, which are impairing the Debtors' financial flexibility and going-concern credibility; (v) legacy costs that were incurred under industry conditions that have changed dramatically and are now unnecessary and burdensome to the business, and (vi) uncertain financing to invest in technology and product improvements that are critical to retaining and expanding the Debtors' competitiveness. The Debtors initiated the Chapter 11 Cases to maximize value for its creditors by attracting new capital through a sale of all or substantially all of the assets of USO and ECD's other assets. ENERGY CONVERSION: Will Not File Form 10-Q for Dec. 31 Quarter -------------------------------------------------------------- As reported in the TCR on Feb. 15, 2012, Energy Conversion Devices, Inc., voluntarily filed a petition for relief under the provisions of Chapter 11 of Title 11 of the United States Bankruptcy Code. The Company has devoted its limited available financial and accounting resources to prepare for the bankruptcy filing and the related sale process of its majority owned subsidiary, Ovonic Battery Company, Inc. As a result of these efforts, as well as the Company's efforts to preserve cash, the Company has not been able to close its books and records, finalize its operating results and prepare its financial statements for the quarter ended Dec. 31, 2011. For these reasons, the Company will not file its Report on Form 10-Q for the quarter ended Dec. 31, 2011. The Company intends to make such disclosures as are required in the bankruptcy process. Anticipated Revenues for Fiscal Second Quarter For the quarter ended Dec. 31, 2011, the Company generated consolidated revenues of approximately $20 million and shipped approximately 11 megawatts. The Company continued to operate at unsustainable levels, resulting in substantial losses and a continued decline in cash balances. With the proceeds from the OBC Transaction (which closed after quarter end), ECD presently has approximately $145 million in unrestricted cash and short-term investments. The Company has determined that its current financial position is insufficient to sustain the current operating environment and make the necessary investments for the future of the business, without restructuring through the bankruptcy process. However, current cash is anticipated to be sufficient for expected operations during the Chapter 11 proceeding, and therefore the Company is not expected to require third-party debtor-in-possession financing. Fiscal First Quarter Results The Company reported a net loss of $56.1 million on $22.0 million of revenues for the first quarter ended Sept. 30, 2011, compared with a net loss of $13.5 million on $65.3 million of revenues for the same period ended Sept. 30, 2010. The Company's balance sheet at Sept. 30, 2011, showed $318.4 million in total assets, $349.0 million in total liabilities, and a stockholders' deficit of $30.6 million About Energy Conversion Devices Energy Conversion Devices -- http://energyconversiondevices.com/- - has a renowned 51 year history since its formation in Detroit, Michigan and has been a pioneer in materials science and renewable energy technology development. The company has been awarded over 500 U.S. patents and international counterparts for its achievements. ECD's United Solar wholly owned subsidiary has been a global leader in building-integrated and rooftop photovoltaics for over 25 years. The company manufactures, sells and installs thin-film solar laminates that convert sunlight to clean, renewable energy using proprietary technology. Energy Conversion Devices filed for Chapter 11 relief (Bankr. E.D. Mich. Case No. 12-43166) on Feb. 14, 2012. Judge Thomas J. Tucker presides over the case. Aaron M. Silver, Esq., Judy B. Calton, Esq., and Robert B. Weiss, Esq., at Honigman Miller Schwartz & Cohn LLP, in Detroit, Michigan, represent the Debtor as counsel. The Debtor Listed assets and debts of between $100 million and $500 million as of the petition date. The petition was signed by William Christopher Andrews, chief financial officer and executive vice president. Affiliate United Solar Ovonic LLC filed a separate Chapter 11 petition on the same day (Bankr. E.D. Mich. Case No. 12-43167). Affiliate Solar Integrated Technologies, Inc., filed a petition for relief under Chapter 7 of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 12-43169. ENERGY CONVERSION: Will Not Appeal Delisting Notice from Nasdaq --------------------------------------------------------------- On Feb. 15, 2012, Energy Conversion Devices, Inc., received a deficiency letter from The NASDAQ Stock Market notifying the Company that in accordance with Listing Rules 5101, 5110(b), and IM-5101-1, the staff of the NASDAQ has determined that the Company's securities will be delisted from The Nasdaq Stock Market. The NASDAQ staff reached its decision under Nasdaq Listing Rules 5101, 5110(b), and IM-5101-1 following the Company's announcement that the Company and its wholly owned operating subsidiary United Solar Ovonic LLC voluntarily filed petitions for relief under the provisions of Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of Michigan. Given this continued listing requirement, the early status of the Chapter 11 Cases and the demands the Chapter 11 Cases have posed on the Company's resources, the Company does not plan to appeal the Staff's determination to delist the Company's common stock. Accordingly, trading of the Company's common stock will be suspended at the opening of business on Feb. 24, 2012, and a Form 25-NSE will be filed with the Securities and Exchange Commission, which will remove the Company's securities from listing and registration on The Nasdaq Stock Market. After the Company's common stock is delisted by NASDAQ, it may trade on the OTC Bulletin Board (?OTC BB?) or the Pink OTC Markets Inc. (the ?Pink Sheets?), but only if a market maker applies to quote the Company's common stock. About Energy Conversion Devices Energy Conversion Devices -- http://energyconversiondevices.com/- - has a renowned 51 year history since its formation in Detroit, Michigan and has been a pioneer in materials science and renewable energy technology development. The company has been awarded over 500 U.S. patents and international counterparts for its achievements. ECD's United Solar wholly owned subsidiary has been a global leader in building-integrated and rooftop photovoltaics for over 25 years. The company manufactures, sells and installs thin-film solar laminates that convert sunlight to clean, renewable energy using proprietary technology. Energy Conversion Devices filed for Chapter 11 relief (Bankr. E.D. Mich. Case No. 12-43166) on Feb. 14, 2012. Judge Thomas J. Tucker presides over the case. Aaron M. Silver, Esq., Judy B. Calton, Esq., and Robert B. Weiss, Esq., at Honigman Miller Schwartz & Cohn LLP, in Detroit, Michigan, represent the Debtor as counsel. The Debtor Listed assets and debts of between $100 million and $500 million as of the petition date. The petition was signed by William Christopher Andrews, chief financial officer and executive vice president. Affiliate United Solar Ovonic LLC filed a separate Chapter 11 petition on the same day (Bankr. E.D. Mich. Case No. 12-43167). Affiliate Solar Integrated Technologies, Inc., filed a petition for relief under Chapter 7 of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 12-43169. ENERGY FUTURE: Incurs $1.9 Billion Net Loss in 2011 --------------------------------------------------- Energy Future Holdings Corp. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K disclosing a net loss of $1.91 billion on $7.04 billion of operating revenues for the year ended Dec. 31, 2011, compared with a net loss of $2.81 billion on $8.23 billion of operating revenues during the prior year. The Company's balance sheet at Dec. 31, 2011, showed $44.07 billion in total assets, $51.83 billion in total liabilities and a $7.75 billion total deficit. "Our company delivered a solid year of operational and financial performance in 2011, while dealing with severe winter and summer weather," said John Young, CEO, EFH. "We had solid performance from our generation fleet, improved customer care in retail markets, and made significant progress in improving our balance sheet. Providing safe and reliable power to customers in a growing Texas will remain our focus in 2012." A full-text copy of the Form 10-K is available for free at: http://is.gd/cFqLtT About Energy Future Energy Future Holdings Corp., formerly known as TXU Corp., is a privately held diversified energy holding company with a portfolio of competitive and regulated energy businesses in Texas. Oncor, an 80%-owned entity within the EFH group, is the largest regulated transmission and distribution utility in Texas. The Company delivers electricity to roughly three million delivery points in and around Dallas-Fort Worth. EFH Corp. was created in October 2007 in a $45 billion leverage buyout of Texas power company TXU in a deal led by private-equity companies Kohlberg Kravis Roberts & Co. and TPG Inc. * * * In April 2011, Moody's Investors Service affirmed the 'Caa2' Corporate Family Rating, 'Caa3' Probability of Default Rating and SGL-4 Speculative Grade Liquidity Ratings of EFH. Outlook is stable. EFH's Caa2 CFR and Caa3 PDR reflect a financially distressed company with limited financial flexibility; its capital structure appears to be untenable, calling into question the sustainability of the business model; and there is no expectation for any meaningful debt reduction over the next few years, beyond scheduled amortizations. At the end of February 2011, Fitch Ratings it does not expect to take any immediate rating action on EFH's Texas Competitive Electric Holdings Company LLC or their affiliates based on recent default allegations from lender Aurelius. EFH carries a 'CCC' corporate rating, with negative outlook, from Fitch. EPIC ENERGY: Whitebox Advisors Owns 35% of Epic Capital Common -------------------------------------------------------------- Whitebox Advisors, LLC, disclose that as of Dec. 31, 2011, it, acting as an investment adviser to its client, is deemed to beneficially own 28,952,442 shares representing 35% of Epic Capital Group Inc.'s Common stock. A copy of the Schedule 13G/A is available for free at: http://is.gd/ufGzdk About Epic Energy The Woodlands, Texas-based Epic Energy Resources, Inc. (OTC BB: EPCC) -- http://www.1Epic.com/-- is an integrated energy services company. Epic provides business and operations consulting; engineering, procurement, and construction management; production operations & maintenance; specialized training, operating manuals, data management and data integration focused primarily on the upstream, midstream and downstream energy infrastructure. The Company filed for Chapter 11 relief (Bankr. D. Colo. Case No. 11-15521) on March 18, 2011. Judge Michael E. Romero presides over the case. Kathryn Guild Foley, Esq., and Lee M. Kutner, Esq., at Kutner Miller Brinen, P.C., represent the Debtor as counsel. When it filed for bankruptcy the Debtor listed $1,000,000 to $10,000,000 in assets and debts. Affiliate Epic Integrated Services, Inc., filed a separate petition for Chapter 11 (Bankr. D. Colo. Case No. 11-15523) on March 18, 2011. EVERGREEN ENERGY: Libra Advisors Owns 12.1% of Common Stock ----------------------------------------------------------- Libra Advisors, LLC, et al., disclose that as of Dec. 31, 2011, they may be deemed to beneficially own shares of Evergreen Energy Inc.'s common stock: No. of Shares Percentage Ownership ------------- -------------------- Libra Advisors, LLC 3,821,763 12.1% Libra Associates, LLC 3,821,763 12.1% Libra Fund, L.P. 3,401,442 10.9% Libra Fund II S.a r.l. 2,251,407 7.5% Libra Fund S.a r.l. 2,251,407 7.5% Ranjan Tandon 3,821,763 12.1% The shares reported herein are held in the accounts of private investment funds, including, Libra Fund, L.P. and Libra Fund II (Luxembourg) S.a.r.l., the investments of which are managed by Libra Advisors, LLC and/or Libra Associates, LLC, each of which Ranjan Tandon is the managing member. A copy of the Schedule 13G/A is available for free at: http://is.gd/WqQtyC Denver, Colo.-based Evergreen Energy Inc. -- http://www.evgenergy.com/-- offers environmental solutions for energy production and generation industries, primarily through its patented clean coal technology, K-Fuel(R). On Jan. 23, 2012, Evergreen Energy, Inc., and nine of its subsidiaries filed a voluntary petition for relief under Chapter 7 of the United States Bankruptcy Code (Bankr. D. Del. Case Nos. 12- 10289 to 12-10298). Effective as of the date of the Bankruptcy Filing, a Chapter 7 trustee assumed control of the Company. The assets of the Company will be liquidated in accordance with the Code. FILENE'S BASEMENT: Creditors Committee Taps Abacus as Advisor ------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized the Official Committee of Unsecured Creditors in the bankruptcy case of Filene's Basement, LLC, et al., to retain Abacus Advisors Group LLC as its real estate and asset liquidation consultants effective as of Dec. 8, 2011. Abacus will, among other things: (a) monitor the conduct and results of store closing sales, and specifically, the expense budgets and actual expenses associated with selling the Debtors' inventory and furniture, fixtures, and equipment; (b) review all proposals that have been or will be received by the Debtors for the purchase of the Debtors' business or assets; and (c) assist in the negotiations with landlords, mortgagees and other relevant parties in the sale, assignment or termination of leases or owned properties. To the best of the Committee's knowledge Abacus is a "disinterested person" as that term is defined in section 101(14) of the Bankruptcy Code. The current hourly rates for Abacus are: Classification Standard Hourly Rates -------------- --------------------- Managing Directors $550 - $700 Executive Managers $400 - $500 Associates $300 - $375 Clerical Staff $150 - $250 Abacus will also be entitled to seek a value added fee of up to 10% of all incremental benefits to the Debtors' estates, or incremental savings to the Debtors' estates, achieved through the efforts of Abacus, that value added fee to be agreed to by the Committee and Abacus. That value added fee will be subject to review and approval of the Court in accordance with the provisions of Section 330 of the Bankruptcy Code. Consistent with the firm's policy with respect to its other clients, Abacus will continue to charge for reimbursement of actual and necessary expenses incurred in rendering services to the Committee. About Syms Corp. 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 estimated $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: Taps Cushman & Wakefield Real Estate Advisor --------------------------------------------------------------- The Bankruptcy Court authorized Filene's Basement, LLC, et al., to employ Cushman & Wakefield Securities, Inc., as real estate financial advisor and Cushman & Wakefield, Inc., as exclusive real estate broker with respect to Syms Corp.'s owned real property and broker leased properties, nunc pro tunc to the Petition Date. The Court overruled the objections raised by the Official Committee of Unsecured Creditors and the Official Committee of Syms Corp. Equity Security Holders. The Debtors are authorized and directed to pay Cushman Broker all Leasing and Subleasing Transaction Fees upon signing of the particular lease or sublease or upon the closing of the lease termination, as applicable, and to pay all Sale Transaction Fees at closing directly from the proceeds of the applicable Transaction. Cushman Securities and Cushman Broker are not required to file interim or final fee applications pursuant to Sections 330 and 331 of the Bankruptcy Code or keep time records in connection with their services under the Engagement Letters. The Debtors will be bound by the indemnification, contribution, reimbursement, exculpation and other provisions of the Engagement Letters and will indemnify and hold harmless Cushman and the other parties entitled to indemnification in accordance with the Engagement Letters during the pendency of the Chapter 11 cases. About Syms Corp. 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 estimated $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: Equity Committee Taps Houlihan as Advisor ------------------------------------------------------------ The Official Committee of Syms Corp. Equity Security Holders of Filene's Basement, LLC, et al., seeks permission from the Bankruptcy Court to retain Houlihan Lokey Capital, Inc., nunc pro tunc to Jan. 30, 2012, as its financial advisor and investment banker. Under the terms of the Engagement Agreement, Houlihan Lokey will, among other things: (a) analyze business plans and forecasts of the Debtors; (b) evaluate the assets and liabilities of the Debtors; (c) assess the financial issues and options concerning (i) the development or sale of all or any portion of the Debtors' assets, equity or other interests, either in whole or in part, and (ii) any Debtor- or Committee-sponsored chapter 11 plans of reorganization or liquidation or any other chapter 11 plans; (d) analyze and review the financial and operating statements of the Debtors; and (e) assist in the determination of an appropriate capital structure for the Debtors. Houlihan Lokey will be paid a nonrefundable monthly cash fee of $100,000. Houlihan Lokey will be paid $1 million upon confirmation by the Bankruptcy Court of any Chapter 11 plan of reorganization or liquidation or any sale of all or substantially all of the assets of the Debtors. Houlihan Lokey will be paid a fee equal to the sum of (a) 3% of the Aggregate Equity Holder Recoveries, if any, greater than $125 million up to and including $175 million plus (b) 5% of the Aggregate Equity Holder Recoveries greater than $175 million. The Incentive Fee will be earned and payable upon the earlier to occur of (a) the date of receipt of any distributions by the Equity Holders, and (b) the effective date of a Plan. In addition, Houlihan Lokey will be reimbursed for its reasonable out-of-pocket expenses incurred from time to time in connection with its services under the Engagement Agreement. The Engagement Letter provides that the Debtors will (i) indemnify and hold harmless Houlihan Lokey and its affiliates, and their respective past, present and future directors, officers, shareholders, partners, members, employees, agents, representatives, advisors, subcontractors and controlling persons to the fullest extent lawful, from and against any and all losses, claims, damages or liabilities except to the extent of any loss, claim, damage or liability which is finally judicially determined to have resulted from the willful misconduct, bad faith, fraud or gross negligence. To the best of the Equity Committee's knowledge, Houlihan Lokey is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. About Syms Corp. 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 estimated $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: Can Employ Rothschild as Financial Advisor ------------------------------------------------------------- The Bankruptcy Court authorized Filene's Basement, LLC, et al., to employ Rothschild Inc. as their financial advisor and investment banker. Rothschild will be paid $150,000 in lieu of its monthly fees due from the Petition Date through Jan. 31, 2012; provided that the $150,000 currently held by Rothschild on the Debtors' account will be applied to this payment. Rothschild will be entitled to a report fee of $250,000 payable upon delivery of an analysis of potential plans of reorganization or liquidation, reasonably satisfactory to the Debtors. Rothschild's first Transaction Fee will be $1,200,000, payable upon the effective date of a plan of reorganization or plan of liquidation in these Chapter 11 cases. Rothschild will be entitled to a new capital fee equal to: (i) 1% of the face amount of any senior secured debt raised including, without limitation, any debtor-in-possession financing raised; (ii) 2% of the face amount of any junior secured debt raised; (iii) 3% of the face amount of any senior or subordinated unsecured debt raised; and (iv) 5% of any equity capital, or capital convertible into equity, raised, payable upon the closing of the transaction by which the new capital is committed. Rothschild is entitled to reimbursement by the Debtors for reasonable expenses incurred. The Debtors will indemnify and hold harmless Rothschild pursuant to the Engagement Letter. About Syms Corp. 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 estimated $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 DATA: Seeks to Amend Senior Credit Facilities --------------------------------------------------- First Data Corporation intends to seek amendments to its senior secured credit facilities to, among other things, (i) convert all or a portion of the Company's existing term loans maturing September 2014 under the Company's senior secured term loan facility into new dollar- and euro-denominated extended tranches of term loans, maturing March 2017, (ii) provide for certain increases in the Company's ability to incur indebtedness pursuant to the incremental facility option under its senior secured credit facilities and (iii) effect certain other changes as provided for in the definitive documentation for the amendments. The effectiveness of the amendments is subject to certain conditions, including, among other things, (w) the Company's obtaining consent of (A) the lenders holding a majority of the commitments and loans outstanding under the senior secured credit facilities and (B) each lender holding 2014 Term Loans that agrees to be subject to the Term Loan Extension and (y) within 90 days of the date of the initial effectiveness of the amendment agreement, the Company having issued senior secured notes in an amount to be determined, the net cash proceeds of which will have been used to prepay a portion of eligible 2017 Term Loans. The Company expects that these amendments will provide it with more flexibility to address its debt maturities and that the amendments are an important step in enhancing its financial flexibility and continued access to long-term funding. Although the Company believes that its plans, intentions and expectations are reasonable, the Company cannot assure that it will achieve or realize these plans, intentions or expectations. About First Data Based in Atlanta, Georgia, First Data Corporation, with over $10 billion of revenue for the 12 months ended June 30, 2010, provides commerce and payment solutions for financial institutions, merchants, and other organizations worldwide. The Company reported a net loss of $336.10 million in 2011 and a net loss of $846.90 million in 2010. The Company's balance sheet at Dec. 31, 2011, showed $40.27 billion in total assets, $36.80 billion in total liabilities and $3.40 billion in total equity. * * * The Company's carries a 'B3' corporate family rating, with a stable outlook, from Moody's Investors Service, a 'B' corporate credit rating, with stable outlook, from Standard & Poor's, and a 'B' long-term issuer default rating from Fitch Ratings. Standard & Poor's Ratings Services in December 2010 assigned its 'B-' issue rating with a '5' recovery rating to First Data Corp.'s (B/Stable/--) $2 billion of 8.25% second-lien cash-pay notes due 2021, $1 billion $8.75% second-lien pay-in-kind-toggle notes due 2022, and $3 billion 12.625% unsecured cash-pay notes due 2021. The '5' recovery rating indicates lenders can expect modest (10%- 30%) recovery in the event of payment default. Under S&P's default analysis, there is insufficient collateral to fully cover First Data's first-lien debt. As a result, the remaining value of the company (generated by non-U.S. assets and not pledged) would be shared pari passu among the uncovered portion of first-lien debt, new second-lien debt, and new and existing unsecured debt. FOREVER CONSTRUCTION: Plan Outline Hearing Continued to March 22 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois has continued until March 22, 2012, at 10:30 a.m., the combined hearing to consider adequacy of Disclosure Statement and Confirmation of the Plan of Reorganization, amended twice as of Feb. 8, 2012. The Plan provides for distributions to the holders of Allowed Claims from funds realized from the continued operation of the Debtor's business as well as from existing cash deposits. Under the plan Classes 1, 2, 3, 4, will be paid principal and interest on secured debt at non-default rate of interest, pursuant to existing loan documentation, or as modified or renewed by agreement. Properties securing Classes 5, 6 and 7 claims will be surrendered in full satisfaction of claim. Class 9 Security Deposits will be paid in the ordinary course of business. The allowed general unsecured claims will share pro rata in payments made on a quarterly basis over five years, without interest. Class 11 Shareholders will retain their ownership interest in exchange for a new value contribution of $2,500. A full-text copy of the Second Amended Disclosure Statement is available for free at: http://bankrupt.com/misc/FOREVER_CONSTRUCTION_ds_2ndamended.pdf About Forever Construction Waukegan, Illinois-based Forever Construction, Inc., is the owner and operator of several multi-tenant residential properties located in or near Waukegan, Illinois. The Debtor filed for Chapter 11 protection (Bankr. N.D. Ill. Case No. 10-33276) on July 27, 2010. Joel A. Schechter, Esq., assists the Debtor in its restructuring effort. The Debtor tapped Jon P. Morgan of InTerra Realty as its real estate sales agent. The Debtor estimated assets and debts at $10 million to $50 million in its Chapter 11 petition. No creditors committee has been appointed in the case. The Debtor's Plan provides for distributions to the holders of allowed claims from funds realized from the continued operation of the Debtor's business as well as from existing cash deposits. GAME TRADING: Todd Hayes Resigns as President and CEO ----------------------------------------------------- On Feb. 7, 2012, Todd Hays resigned as President, Chief Executive Officer and Director of Game Trading Technologies, Inc., and Gamers Factory, Inc., effective Feb. 7, 2012. There was no disagreement or dispute between Mr. Hays and the companies which led to his resignation. On Feb. 8, 2012, the Companies filed their proposed plan of reorganization and motion to establish bidding procedures for and sale of substantially all of the companies' assets. Pursuant to the sale and bid procedures motion, the companies seek to sell, subject to higher and better offers and bankruptcy Court approval, substantially all of their assets to two stalking horse bidders, DK Trading Partners, LLC, and Mantomi Sales, LLC, respectively. Mantomi Sales, LLC, is 100% owned by Mr. Hays. Pursuant to the Mantomi Sales, LLC asset purchase agreement, (i) Mr. Hays was required to resign as President and Chief Executive Officer of the companies on or before the execution of the Mantomi APA; (ii) the companies' Chief Restructuring Officer may employ Mr. Hays as an independent consultant to the companies in matters unrelated to the sale; and (iii) nothing in the Mantomi APA constitutes or will be deemed a breach of the employment agreement between Mr. Hays and the companies. Game Trading Technologies Inc. fka City Language Exchange, Inc. (OTC BB: GMTD) filed for Chapter 11 protection (Bankr. D. Md. Lead Case No. 12-11519) on Jan. 30, 2012. James Edward Van Horn, Jr., Esq., at McGuirewoods LLP, represents the Debtor. When it filed for bankruptcy, Game Trading listed $0 to $50,000 in assets and $1,000,000 to $10 million in debts. Affiliate Gamers Factory, Inc., filed a separate petition for Chapter 11 relief (Bankr. D. Md. Case No. 12-11522) on the same day. GOLDEN TEMPLE: Case Summary & 11 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Golden Temple Management, LLC 950 International Way Springfield, OR 97477 Bankruptcy Case No.: 12-60536 Chapter 11 Petition Date: February 18, 2012 Court: U.S. Bankruptcy Court District of Oregon Judge: Thomas M. Renn Debtor's Counsel: John D. Albert, Esq. ALBERT & TWEET, LLP P.O. Box 968 Salem, OR 97308 Tel: (503) 585-2056 E-mail: darlene@albertandtweet.com Scheduled Assets: $49,077,498 Scheduled Liabilities: $10,434,000 The petition was signed by Kartar Singh Khalsa, manager. Debtor's List of Its 11 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Hearthside Food Solutions, LLC Claim to holdback $9,800,000 1901 Butterfield Road, Suite 530 funds Downers Grove, IL 60515 Perkins Coie Legal Services $78,000 1120 NW Couch Street, 10th Floor Portland, OR 97209 Harrang Long Gary Rudnick PC Provision of Legal $6,000 380 E. 10th Avenue, Suite 300 Services Eugene, OR 97401 Avtar Hari Singh Khalsa Claims Unknown Guru Raj Kaur Khalsa Claims Unknown Guru Sangat Kaur Khalsa Claims Unknown Gurutej Singh Khalsa Claims Unknown Sardarni Guru Amrit Kaur Khalsa Claims Unknown Sikh Dharma International Claims Unknown Special Interest ? Trust Potential Class of Unknown Beneficiaries Claimants State of Oregon Claims Unknown GENERAL MARITIME: Committee Objects to Oaktree Releases in Plan --------------------------------------------------------------- General Maritime Corp. creditors' committee is opposing approval of the disclosure statement explaining the Company's Chapter 11 plan. Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the Creditors Committee claims that the company's proposed reorganization plan is "patently unconfirmable." The hearing to approve the explanatory disclosure statement is set for Feb. 28. The Company filed a proposed Chapter 11 plan on Jan. 31 to implement an agreement reached prepetition with affiliates of Oaktree Capital Management LP, the leader of a group of lenders on three credits totaling more than $1 billion. The Oaktree group is to invest $175 million while converting secured debt to equity. The Plan contemplates a $61.25 million rights offering where holders of general unsecured claims will have the opportunity to purchase up to 17.5% of the new equity of the reorganized Company. A copy of the related Disclosure Statement is available for free at http://is.gd/suIUVd According to the Bloomberg report, the committee's principal objection is to releases contained in the plan that would preclude creditors from suing third parties, such as Oaktree. The committee says the claims aren't covered by the lenders' liens and represent what may be unsecured creditors only hope for recovery. The committee lays out an argument that bankruptcy law prohibits giving releases to third parties under the circumstances. About General Maritime New York-based General Maritime Corporation, through its subsidiaries, provides international transportation services of seaborne crude oil and petroleum products. The Company's fleet is comprised of VLCC, Suezmax, Aframax, Panamax and product carrier vessels. The fleet consisted of 30 owned vessels and three chartered vessels. The company generates substantially all of its revenues by chartering its fleet to third-party customers. The largest customers include major international oil companies, oil producers, and oil traders such as BP, Chevron Corporation, CITGO Petroleum Corp., ConocoPhillips, Exxon Mobil Corporation, Hess Corporation, Lukoil Oil Company, Stena AB, and Trafigura. General Maritime and 56 subsidiaries filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 11-15285) on Nov. 17, 2011. Douglas Mannal, Esq., and Adam C. Rogoff, Esq., at Kramer Levin Naftalis & Frankel LLP, in New York, serve as counsel to the Debtors. Moelis & Company is the financial advisor. Garden City Group Inc. is the claims and notice agent. Prepetition, General Maritime reached agreements with its key senior lenders, including its bank group, led by Nordea Bank Finland plc, New York Branch as administrative agent, as well as affiliates of Oaktree Capital Management, L.P., on the terms of a restructuring. Under terms of the agreements, Oaktree will provide a $175 million new equity investment in General Maritime and convert its prepetition secured debt to equity. In conjunction with the filing, General Maritime has received a commitment for up to $100 million in new DIP financing from a group of lenders led by Nordea as administrative agent. Counsel for Nordea, as the DIP Agent and the Senior Agent, are Thomas E. Lauria, Esq., and Scott Greissman, Esq., at White & Case LLP. Counsel for Oaktree Capital Management, the Junior Agent, are Edward Sassower, Esq., and Brian Schartz, Esq., at Kirkland & Ellis, LLP. The Official Committee of Unsecured Creditors appointed in the case has retained lawyers at Jones Day as Chapter 11 counsel. Jones Day previously represented an ad hoc group of holders of the 12% Senior Notes due 2017 issued by General Maritime Corp. This representation began Sept. 20, 2011, and concluded Nov. 29, 2011, with the agreement of all members of the Noteholders Committee. The Creditors Committee also tapped Lowenstein Sandler PC as special conflicts counsel. The Noteholders Committee consisted of Capital Research and Management Company, J.P. Morgan Investment Management, Inc., J.P. Morgan Securities LLC, Stone Harbor Investment Partners LP and Third Avenue Focused Credit Fund. The Creditors Committee is comprised of Bank of New York Mellon Corporate Trust, Stone Harbor Investment Partners, Delos Investment Management, and Ultramar Agencia Maritima Ltda. GenMar filed a a proposed Chapter 11 plan on Jan. 31 to implement an agreement worked out before the Nov. 17 bankruptcy filing with affiliates of Oaktree Capital Management LP. The Oaktree group, lenders on three credits totaling more than $1 billion, are to invest $175 million while converting secured debt to equity. In addition, there is to be a $61.3 million rights offering where creditors can purchase new stock. The Company intends to seek confirmation of the Plan by April 2012. GREENMAN TECHNOLOGIES: Incurs $1.1-Mil. Net Loss in Dec. 31 Qtr. ---------------------------------------------------------------- GreenMan Technologies, Inc., filed with the U.S. Securities and Exchange Commission a Form 10-Q reporting a net loss of $1.14 million on $396,017 of net sales for the three months ended Dec. 31, 2011, compared with a net loss of $1.48 million on $360,202 of net sales for the same period during the prior year. The Company reported a net loss of $5.02 million on $2.86 million of net sales for the nine months ended June 30, 2011, compared with a net loss of $4.45 million on $998,000 of net sales for the same period during the prior year. The Company's balance sheet at Dec. 31, 2011, showed $3.68 million in total assets, $7.03 million in total liabilities, and a $3.34 million total stockholders' deficit. As of Dec. 31, 2011, the Company had $403,036 in cash, cash equivalents and restricted certificates of deposit and a working capital deficiency of $2,866,852. The Company's molded rubber products business has historically been the source of substantially all of its revenue and cash flow over the past three fiscal years and the Company has incurred substantial losses from operations over those fiscal years. For fiscal 2010, the Company's independent auditors expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has continued to incur substantial losses from operations, has not generated positive cash flows and has insufficient liquidity to fund its ongoing operations. A full-text copy of the Form 10-Q is available for free at: http://is.gd/pLrVYs About Greenman Technologies Lynnfield, Mass.-based GreenMan Technologies, Inc. (OTC QB: GMTI) through its two alternative energy subsidiaries, American Power Group, Inc. ("APG") and APG International, Inc. ("APGI"), provides a cost-effective patented dual fuel conversion technology for diesel engines and diesel generators. GREENMAN TECHNOLOGIES: Incurs $6.8-Mil. Net Loss in Fiscal 2011 --------------------------------------------------------------- GreenMan Technologies, Inc., filed with the U.S. Securities and Exchange Commission a Form 10-K reporting a net loss of $6.81 million on $1.76 million of net sales for the year ended Sept. 30, 2011, compared with a net loss of $5.64 million on $332,533 of net sales a year ago. The Company's balance sheet at Sept. 30, 2011, showed $3.78 million in total assets, $6.86 million in total liabilities and a $3.07 million total stockholders' deficit. For Fiscal 2011, the Company's independent auditors expressed substantial doubt about the Company's ability to continue as a going concern. Schechter Dokken Kanter Andrews & Selcer, Ltd., in Minneapolis, Minnesota, noted in its report that the Company has continued to incur substantial losses from operations, has not generated positive cash flows and has insufficient liquidity to fund its ongoing operations. A full-text copy of the Form 10-K is available for free at: http://is.gd/A7QWzh About Greenman Technologies Lynnfield, Mass.-based GreenMan Technologies, Inc. (OTC QB: GMTI) through its two alternative energy subsidiaries, American Power Group, Inc. ("APG") and APG International, Inc. ("APGI"), provides a cost-effective patented dual fuel conversion technology for diesel engines and diesel generators. GRUBB & ELLIS: Meeting to Form Creditors' Panel on Feb. 24 ---------------------------------------------------------- Roberta A. DeAngelis, United States Trustee for Region 3, will hold an organizational meeting on Feb. 24, 2012, at 10:00 a.m. in the bankruptcy case of Grubb & Ellis. The meeting will be held at: Office of the United States Trustee 80 Broad St., 4th Floor New York, NY 10004 The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' cases. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. About Grubb & Ellis Grubb & Ellis -- http://www.grubb-ellis.com/-- is one of the nation's largest commercial real estate services firms, providing transaction services, property management, facilities management and valuation services through more than 100 company-owned and affiliate offices. The Company employs over 3,000 professionals and conducts business through over 90 company-owned and affiliate locations throughout the United States, and, through a network of non-debtor-affiliates, throughout the world. The company completed about 12,000 sale and lease transactions last year and manages more than 250 million square feet of property. Grubb & Ellis Co., along with affiliates, filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 12-10685) on Feb. 2012, with a deal to sell its assets to BGC Partners Inc. The Debtor is seeking expedited sale as it faces $30 million in debt that matures on March 1 and insufficient cash to make it through the first quarter of 2012. BGC Partners, owner of large commercial real estate service firm Newmark Knight Frank, has agreed to provide a loan of as much as $4.8 million to Grubb & Ellis to keep it operating during the bankruptcy process. The Debtors have engaged Togut, Segal & Segal, LLP as general bankruptcy counsel, Zuckerman Gore Brandeis & Crossman, LLP, as general corporate counsel, and Alvarez & Marsal Holdings, LLC, as financial advisor in the Chapter 11 case. Kurtzman Carson Consultants is the claims and notice agent. The sale to BGC is subject to higher and better offers at an auction. The Debtor proposes a March 9 deadline for preliminary bids, a March 19 deadline for binding bids, an auction on March 31, 2012, and a sale hearing on March 23, 2012. Pursuant to the term sheet signed by the parties, BGC will buy the assets for $30.02 million consisting of a credit bid and the amounts drawn under the DIP facility. GRUBB & ELLIS: Case Summary & 50 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Grubb & Ellis Company 1177 Avenue of the Americas New York, NY 10036 Bankruptcy Case No.: 12-10685 Affiliates that simultaneously filed Chapter 11 petitions: Debtor Case No. ------ -------- Grubb & Ellis New York, Inc. 12-10684 Grubb & Ellis Affiliates, Inc. 12-10686 Grubb & Ellis of Arizona, Inc. 12-10687 Grubb & Ellis of Michigan, Inc. 12-10688 Grubb & Ellis of Nevada, Inc. 12-10689 Grubb & Ellis Consulting Services Company 12-10690 Grubb & Ellis Capital Corporation 12-10691 Grubb & Ellis Equity Advisors, LLC 12-10692 Grubb & Ellis Landauer Valuation Advisory Services, LLC 12-10693 GBE Alesco Corp. 12-10694 Grubb & Ellis Securities, Inc. 12-10695 Las Vegas Commercial Brokerage, LLC 12-10696 Grubb & Ellis Management Services, Inc. 12-10697 Grubb & Ellis Management Services of Michigan, Inc. 12-10698 Grubb & Ellis Apartment REIT Advisor, LLC 12-10699 Grubb & Ellis Healthcare REIT II Advisor, LLC 12-10700 Chapter 11 Petition Date: February 20, 2012 Court: U.S. Bankruptcy Court Southern District of New York (Manhattan) About the Debtors: Grubb & Ellis -- http://www.grubb-ellis.com/-- is one of the nation's largest commercial real estate services firms, providing transaction services, property management, facilities management and valuation services through more than 100 company-owned and affiliate offices. The Company employs over 3,000 professionals. Debtors' Counsel: Frank A. Oswald, Esq. TOGUT, SEGAL & SEGAL LLP One Penn Plaza New York, NY 10119 Tel: (212) 594-5000 E-mail: frankoswald@teamtogut.com Debtors' General Corporate Counsel: ZUKERMAN GORE BRANDEIS & CROSSMAN, LLP Debtors' Investment Banker: ALVAREZ & MARSAL NORTH AMERICA, LLC Debtors' Financial Advisor: ALVAREZ & MARSAL SECURITIES, LLC Debtors' Claims Agent: KURTZMAN CARSON CONSULTANTS Total Assets: $150.16 million as of Dec. 31, 2011 Total Liabilities: $167.2 million as of Dec. 31, 2011. The petitions were signed by Michael J. Rispoli, executive vice president/chief financial officer. Consolidated List of 50 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ U.S. Bank National Association Unsecured $32,126,063 633 W. Fifth Street, 24th Floor Noteholder Los Angeles, CA 90071 NNN Realty Advisors Inc. Note Payable $5,051,896 1551 North Tustin Avenue, Suite 200 Santa Ana, CA 92705 Jenner & Block, LLP Legal Services $2,372,736 353 North Clark Street Chicago, IL 60654-3456 Bruce McNair Former Employee $1,725,000 8121 Rayburn Road Bethesda, MD 20817 Costar Realty Informations, Inc. Trade $1,073,365 1331 L. Street NW Washington, D.C. 20005-4101 BankDirect Capital Finance Insurance Finance $908,255 P.O. Box 660448 Dallas, TX 75266-0448 William Morris Former Employee $875,000 1511 Seasons Drive Park City, UT 84060 Blue Cross/Blue Shield Employee Benefits $666,648 300 East Randolph Street Chicago, IL 60601 FBR Capital Markets Corp. Consulting $602,388 1001 19th Street N Arlington, VA 22209 Logistics Management Institute Trade $501,257 2000 Corporate Ridge McLean, VA 22102-7805 IBM Credit LLC Trade $426,533 4111 Northside Parkway Atlanta, GA 30327 Manhattan Software, Inc. Trade $422,275 425 Fortune Boulevard, Suite 200 Milford, MA 01757 Manchester Grand Hyatt San Diego Trade $386,633 One Market Place San Diego, CA 92101 CDW Direct, LLC Trade $378,691 P.O. Box 75723 Chicago, IL 60675-5723 Glendon B. Esnard Former Employee $376,389 1430 Newporter Way Newport Beach, CA 92660 Keesal, Young, Logan Legal Services $368,212 400 Ocean Gate Long Beach, CA 90801 Munger, Toiles, & Olson Legal Services $366,138 355 South Grand Avenue, 35th Floor Los Angeles, CA 90071 Ernst & Young, LLP Consulting $363,000 1811 Von Karman Avenue, Suite 1000 Irvine, CA 92612-1007 The Ritz?Carlton, Laguna Niguel Trade $360,490 One Ritz-Carlton Drive Dana Point, CA 92629 RR Donnelley Trade $281,183 3075 Highland Parkway Downers Grove, IL 60515 HIG Capital Trade $275,000 1450 Brickell Avenue, 31st Floor Miami, FL 33131 Steven R. Morgan Independent $270,980 300 Ledgemon Court Contractor Atlanta, GA 30342 Mitchell Millowitz Employee $262,215 6169 NW 124 Drive Coral Springs, FL 33076 Bart Pucci Independent $245,890 125 17th Street Contractor Santa Monica, CA 90402 Greenberg Traurig LLP Legal Services $244,805 Philip Giunta Former Employee $241,232 Verizon Communications Customer $239,974 David Squire Independent $230,000 Contractor Bradford Fletcher Independent $230,000 Contractor James Arket Independent $220,909 Contractor Brett Richard Diamond Independent $204,469 Contractor John Clark Independent $200,000 Contractor Robert Anthony Lundin Independent $200,000 Contractor William Travis Former Employee $200,000 Joshua Hartman Former Employee $200,000 Steven L. Roth Employee $194,541 John T. Kerrigan Independent $194,132 Contractor Miller, Canfielf, Paddock, Stone Legal Services $189,817 Michael Kammerling Independent $183,952 Contractor Orange County Printing Company Trade $180,655 Medco Employee Benefits $175,000 Chon C. Kantikovit Independent $168,162 Contractor Parker, Poe, Adams & Bernstein Legal Services $159,252 Jerry Igra Independent $152,945 Contractor Scott A. Read Independent $151,510 Contractor Joel D. Simmons Employee $150,000 Craig J. Scheuerle Independent $143,172 Contractor Workday, Inc. Trade $142,418 CB Richard Ellis Trade $141,519 Charles D. Dilks Former Employee $140,848 GSC GROUP: Judge Formally Approves Black Diamond's Plan ------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Black Diamond Capital Finance LLC won the signature of the bankruptcy judge on a Feb. 17 confirmation order approving the bankruptcy reorganization plan for GSC Group Inc. Unsecured creditors and preferred shareholders, the only groups entitled to vote, were almost unanimous in support. Black Diamond's plan resulted from a settlement with GSC's Chapter 11 trustee. As reported by The Troubled Company Reporter on Jan. 24, 2012, the Fourth Amended BDCM Plan provides for the continued operation of the Debtors' existing investment management business. BDCM maintained that its plan is a more preferable and value-preserving alternative to the GSC Chapter 11 Trustee's Modified Joint Plan of Liquidation. The BDCM Plan offers all unsecured creditors three recovery options: (1) a fast cash payout; (2) a partial cash payment close to the Effective Date plus a delayed cash payout from the proceeds of the Liquidating Trust; or (3) shares of Reorganized GSC Group Series B Preferred Stock and shares of Reorganized GSC Group Convertible Class B Common Stock, which will comprise between 33% and 49%, at BDCM's discretion, of the Reorganized GSC Group Common Stock with 24.9% of the voting rights. The BDCM Plan also provides that Preferred Equity Interest holders will receive shares of Reorganized GSC Group's Class A Common Stock equal to between 51% and 67%, at BDCM's discretion, of the total GSC Common Stock, while the Trustee Plan does not provide any recovery for the interest holders. A clean version of the BDCM 4th Amended Disclosure Statement dated Jan. 12, 2012, is available for free at: http://bankrupt.com/misc/GSCGrp_DS4thAmdJan12.PDF In a Dec. 20 stipulation, the Chapter 11 Trustee agreed to support the BDCM Plan, and adjourned seeking confirmation of its own Plan to allow BDCM to pursue confirmation of the BDCM Plan provided that BDCM consummates its Plan by Mar. 31, 2012. In return, BDCM has provided the Chapter 11 Trustee with $1 million to satisfy allowed Chapter 11 professional fees and agreed to provide $4 million in escrow funds for the Reorganized Debtors to use to satisfy any "Straddle Tax" (i.e., any income tax liability required to be paid had the Effective Date occurred on or before Dec. 31, 2011). About GSC Group Florham Park, New Jersey-based GSC Group, Inc. -- http://www.gsc.com/-- was a private equity firm that specialized in mezzanine and fund of fund investments. Originally named Greenwich Street Capital Partners Inc. when it was a subsidiary of Travelers Group Inc., GSC became independent in 1998 and at one time had $28 billion of assets under management. Market reverses, termination of some funds, and withdrawal of customers' investments reduced funds under management at the time of bankruptcy to $8.4 billion. GSC Group, Inc., filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 10-14653) on Aug. 31, 2010. Michael B. Solow, Esq., at Kaye Scholer LLP, served as the Debtor's bankruptcy counsel. Epiq Bankruptcy Solutions, LLC, is the Debtor's notice and claims agent. Capstone Advisory Group LLC served as the Debtor's financial advisor. The Debtor estimated its assets at $1 million to $10 million and debts at $100 million to $500 million as of the Chapter 11 filing. Since Jan. 7, 2011, the Debtors have been operated by James L. Garrity Jr., as Chapter 11 trustee for the Debtors. The Chapter 11 trustee tapped Shearman & Sterling LLP as his counsel, and Togut, Segal & Segal LLP as his conflicts counsel. No committee of unsecured creditors has been appointed in the case. Adam Goldberg, Esq., and Douglas Bacon, Esq., at Latham & Watkins, represent Black Diamond Capital Management, LLC, as counsel. Patrick J. Nash, Jr., Esq. and Paul Wierbicki, Esq. of Kirkland & Ellis LLP serve as counsel to Black Diamond Capital Management, LLC. HAMPTON ROADS: Douglas Glenn Appointed President and CEO -------------------------------------------------------- Douglas J. Glenn was named President and Chief Executive Officer of Hampton Roads Bankshares, Inc., and of its wholly owned subsidiary, The Bank of Hampton Roads. Mr. Glenn has been serving as interim President and Chief Executive Officer of the Company since August 2011. Mr. Glenn, 45, has been a director of the Company since 2006. He was appointed Executive Vice President and General Counsel of the Company and the Bank in 2007. He added the responsibilities of Chief Operating Officer of the Company in February 2009 and became interim President and Chief Executive Officer in August 2011. He stepped down as General Counsel in January 2012. Prior to joining the Company, Mr. Glenn practiced law at Pender & Coward, P.C. in Virginia Beach, Virginia. In connection with this appointment, Mr. Glenn entered into an Amended and Restated Employment Agreement with the Company and the Bank on Feb. 13, 2012. The Restated Agreement provides that Mr. Glenn's employment with the Company and the Bank is at-will and that he is entitled to 90 days prior notice of termination of his employment. Mr. Glenn will receive an initial base salary of $550,000 will be eligible for annual salary increases at the discretion of the boards of directors of the Company and the Bank. Under the Restated Agreement Mr. Glenn is also entitled to participate in the Company's employee and director benefit plans and programs for which he is or will be eligible and certain fringe benefits. Mr. Glenn will not be entitled to any change of control or severance benefits. The Restated Agreement provides that Mr. Glenn will receive annual restricted stock grants equal to 50% of his average base salary in the year of the grant. The restricted stock will vest on the later of (i) two years from the date of the grant, (ii) the date the Company is no longer subject to the executive compensation and corporate governance requirements of Section 111(b) of the Emergency Economic and Stabilization Act of 2008, as amended or (iii) the date the Company is no longer subject to the Written Agreement by and among the Company, The Bank of Hampton Roads, the Federal Reserve Bank of Richmond and the Virginia Bureau of Financial Institutions. Any shares of restricted stock that vest shall not be transferable except as permitted by EESA and the regulations thereunder. The Restated Agreement also provides that Mr. Glenn's existing Supplemental Retirement Agreement with the Bank is amended to state that the maximum aggregate amount he will be entitled to receive under the SERP is the lesser of $600,000 or the amount he is otherwise entitled to under the SERP. The Restated Agreement indemnifies Mr. Glenn to the fullest extent of applicable law for any matter relating to his affiliation with the Company or the Bank, unless Mr. Glenn is terminated for cause, as such term is defined in the Restated Agreement, and the relevant claim arises out of the matter for which he was terminated. About Hampton Roads Bankshares Hampton Roads Bankshares, Inc. (NASDAQ: HMPR) -- http://www.hamptonroadsbanksharesinc.com/-- is a bank holding company that was formed in 2001 and is headquartered in Norfolk, Virginia. The Company's primary subsidiaries are Bank of Hampton Roads, which opened for business in 1987, and Shore Bank, which opened in 1961. Currently, Bank of Hampton Roads operates twenty- eight banking offices in the Hampton Roads region of southeastern Virginia and twenty-four offices in Virginia and North Carolina doing business as Gateway Bank & Trust Co. Shore Bank serves the Eastern Shore of Maryland and Virginia through eight banking offices and fifteen ATMs. Effective June 17, 2010, the Company and its banking subsidiary, Bank of Hampton Roads ("BOHR"), entered into a written agreement with the Federal Reserve Bank of Richmond and the Bureau of Financial Institutions of the Virginia State Corporation Commission. The Company's other banking subsidiary, Shore Bank, is not a party to the Written Agreement. Under the terms of the Written Agreement, among other things, BOHR agreed to develop and submit for approval plans to (a) strengthen board oversight of management and BOHR's operations, (b) strengthen credit risk management policies, (c) improve BOHR's position with respect to loans, relationships, or other assets in excess of $2.5 million which are now, or may in the future become, past due more than 90 days, are on BOHR's problem loan list, or adversely classified in any report of examination of BOHR, (d) review and revise, as appropriate, current policy and maintain sound processes for determining, documenting, and recording an adequate allowance for loan and lease losses, (e) improve management of BOHR's liquidity position and funds management policies, (f) provide contingency planning that accounts for adverse scenarios and identifies and quantifies available sources of liquidity for each scenario, (g) reduce the Bank's reliance on brokered deposits, and (h) improve BOHR's earnings and overall condition. The Company said in its Form 10-Q for the Sept. 30, 2010 quarter that due to its financial results, the substantial uncertainty throughout the U.S. banking industry, and the Written Agreement the Company and BOHR have entered into, doubts existed regarding the Company's ability to continue as a going concern through the second quarter of 2010. However, management believes this concern has been mitigated by the initial closing of the Private Placement that occurred on Sept. 30, 2010. The 2010 results did not include a going concern qualification from Yount Hyde. The Company's balance sheet at Sept. 30, 2011, showed $2.43 billion in total assets, $2.30 billion in total liabilities, and $135.67 million in total shareholders' equity. The Company reported a net loss of $98 million on $100.79 million in interest income for the year ended Dec. 31, 2011, compared with a net loss of $210.35 million on $122.19 million in interest income during the prior year. HCA HOLDINGS: Thomas Frist Discloses 62.2% Equity Stake ------------------------------------------------------- In an amended Schedule 13G filing with the U.S. Securities and Exchange Commission, Thomas F. Frist, Jr., and his affiliates disclosed that, as of Dec. 31, 2011, they beneficially own 271,348,910 shares of common stock of HCA Holdings, Inc., representing 62.2% of the shares outstanding. The calculation of the percentage is based on 436,557,300 shares of voting common stock outstanding as of Oct. 31, 2011, as reported in the HCA Holdings Quarterly Report on Form 10-Q for the period ended Sept. 30, 2011, as filed with the Securities and Exchange Commission on Nov. 9, 2011. Hercules Holding II, LLC, held 271,348,910 Shares as of Dec. 31, 2011. The units of Hercules are held by a private investor group, including affiliates of each of Bain Capital Investors, LLC, Kohlberg Kravis Roberts & Co. L.P. and affiliates of Dr. Thomas F. Frist, Jr., the founder of the Company, all of whom are parties to the limited liability company agreement of Hercules. A full-text copy of the amended filing is available at: http://is.gd/ynmOGy About HCA Inc. Headquartered in Nashville, Tennessee, HCA is the nation's largest acute care hospital company with 162 hospitals and 104 freestanding surgery centers (including eight hospitals and eight freestanding surgery centers that are accounted for using the equity method) as of Sept. 30, 2010. For the 12 months ended Sept. 30, 2010, the company recognized revenue in excess of $30 billion. HCA Holdings' balance sheet as of Dec. 31, 2011, showed $26.89 billion in total assets, $33.91 billion in total liabilities, and a $7.01 billion in total deficit. * * * In May 2011, Moody's Investors Service upgraded the Corporate Family and Probability of Default Ratings of HCA Inc. (HCA) to B1 from B2. "The upgrade of HCA's rating reflects the considerable progress the company has made in improving financial metrics and managing the company's maturity profile since the November 2006 LBO," said Dean Diaz, a Moody's Senior Credit Officer. "While the funding of distributions to shareholders at the end of 2010 increased debt levels, the growth in EBITDA and debt repayment since the LBO have improved leverage metrics considerably from the high levels seen just after the company went private," continued Diaz. As reported by the Troubled Company Reporter on March 14, 2011, Moody's Investors Service commented that the completion of the IPO by HCA Holdings, Inc., has no immediate impact on the company's B2 Corporate Family Rating. The outlook for the ratings remains positive. While Moody's believes that the completion of the IPO is a credit positive since proceeds are expected to be used to repay outstanding debt, the estimated $2.6 billion of proceeds to the company won't meaningfully reduce HCA's $28.2 billion debt load. In the March 16, 2011, edition of the TCR, Fitch Ratings has upgraded its ratings for HCA Inc. and HCA Holdings Inc., including the companies' Issuer Default Ratings which were upgraded to 'B+' from 'B'. The Rating Outlook is revised to Stable from Positive. The ratings apply to approximately $28.2 billion in debt outstanding at Dec. 31, 2010. Fitch noted that HCA has made significant progress in reducing debt leverage since it was taken private in 2006 in a LBO which added $17 billion to the company's debt balance; at Dec. 31, 2006, immediately post the LBO, debt-to- EBITDA was 6.7x. Most of the reduction in debt leverage over the past four years was accomplished through growth in EBITDA, which Fitch calculates has expanded by $1.7 billion or 40% to $5.9 billion for 2010 versus $4.2 billion in 2006. Although the company did not undertake a significant organizational restructuring post the LBO, management has nevertheless been successful in growing EBITDA and significantly expanding discretionary free cash flow (FCF). Fitch believes this was accomplished through various operational initiatives, including expansion of profitable service lines and the divestiture of some under performing hospitals, as well as the generally resilient operating trend of the for-profit hospital industry during the recent economic recession despite the pressure of increased levels of uncompensated care and generally weak organic patient volume trends. HEARUSA INC: Projects $39.7 Million for Common Stockholders ----------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that HearUSA Inc. filed a liquidating Chapter 11 plan last week that would pay creditors in full. No creditors are entitled to vote because all are paid in full. After paying $4.6 million to secured and unsecured creditors, $42 million will remain for the equity. After $2.33 million for preferred shareholders, $39.7 million will remain for common equity, the disclosure statement says. The disclosure statement estimates the distribution for each share at $1.02. The business was purchased by Siemens Hearing Instruments Inc., the principal supplier and primary secured lender. When the results of the auction were disclosed, the stock quickly rose to about 90 cents a share, after trading in the vicinity of 40 cents during bankruptcy. On Feb. 21, the stock closed at 96 cents, up 1 cent in over-the-counter trading. The disclosure statement includes a projection showing $53.8 million in available cash. Costs of the Chapter 11 case will consume about $6.6 million. To avoid the expense of vote solicitation, HearUSA intends to treat equity as voting "no" and approving the plan by use of the so-called cramdown process, where the liquidation can be approved by proving shareholders will receive more than they would if the case was converted to liquidation in Chapter 7 bankruptcy. About HearUSA Inc. HearUSA, Inc., which sells hearing aids in 10 states, filed for Chapter 11 bankruptcy protection (Bankr. S.D. Fla. Case No. 11-23341) on May 16, 2011, to sell the business for $80 million to William Demant Holdings A/S. The Debtor said that assets are $65.6 million against debt of $64.7 million as of March 31, 2010. HearUSA owes $31.3 million to Siemens Hearing Instruments Inc., the principal supplier and primary secured lender. Judge Erik P. Kimball presides over the case. Brian K. Gart, Esq., Paul Steven Singerman, Esq., and Debi Evans Galler, Esq., at Berger Singerman, P.A., represent the Debtor. The Debtor has tapped Bryan Cave LLP as special counsel; Sonenshine Partners LLC, investment banker; Development Specialist Inc., restructuring advisor ans Joseph J. Luzinski as chief restructuring officer; and AlixPartners LLC, as communications consultant. Trustee Services, Inc., serves as claims and notice agent. The Official Committee of Unsecured Creditors has been appointed in the case. Robert Paul Charbonneau, Esq., and Daniel L. Gold, Esq., at Ehrenstein Charbonneau Calderin, represent the Creditors Committee. An Official Committee of Equity Security Holders has also been appointed. Mark D. Bloom, Esq., at Greenberg Traurig P.A., in Miami, Fla., represents the Equity committee as counsel. The U.S. Bankruptcy Court approved on Aug. 17, 2011, the sale of substantially all of the assets of the Company to Audiology Distribution, LLC, a wholly owed subsidiary of Siemens Hearing Instruments, Inc., which submitted the highest and best bid for the assets in the July 29, 2011 auction pursuant to 11 U.S.C. Section 363. The purchase price is estimated to be roughly $109 million and comprised of $66.8 million in cash plus certain assumed liabilities -- which includes repayment or assumption of the $10 million DIP financing provided by the stalking horse bidder, William Demant Holdings A/S -- plus the payment of cure costs for assumed contracts, and the assumption of various liabilities of the company. On Sept. 9, 2011, the sale closed. In connection with the closing of the transactions contemplated by the Asset Purchase Agreement, on Sept. 13, 2011, the Company filed a Certificate of Amendment to its Restated Certificate of Incorporation with the Delaware Secretary of State in order to change its name to "HUSA Liquidating Corporation". The Certificate of Amendment was effective on the date of filing. HEIDTMAN MINING: Court Orders Dismissal of Bankruptcy Case ---------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Arkansas dismissed the Chapter 11 case of Heidtman Mining, LLC. The Court authorized the Debtor to pay: (i) any unpaid U.S. Trustee fees, (ii) Ohio Holdings and R&R Holdings, (iii) any remaining unpaid administrative expenses, and (iv) counsel for the Debtor sums owed for professional fees and expenses to the extent of remaining estate funds. As reported in the Troubled Company Reporter on Jan. 31, 2012, Heidtman Mining asked the Court to dismiss its Chapter 11 case as the assets in the case have been -- or are in the process of being -- fully distributed per prior court orders and nothing remains for the estate to administer. The Debtor sold substantially all of its assets -- its Arkansas coal mine -- and has distributed the bulk of the sale proceeds to creditors. The bulk of distributions to creditors were to secured creditors holding secured claims against the coal mine assets, to repay debtor-in-possession funding, to pay for the costs, including cure costs, of assuming various contracts related to the mining assets, to priority employee claims, and for administrative costs. With the final distributions, no assets will remain undistributed and the case can be dismissed. Since the coal mine sale, the Debtor has not operated as a business and there exists nothing to reorganize at this juncture. About Heidtman Mining Toledo, Ohio-based Heidtman Mining, LLC, filed for Chapter 11 bankruptcy (Bankr. W.D. Ark. Case No. 09-72912) on June 12, 2009. George H. Tarpley, Esq., Marcus Jermaine Watson, Esq., at Cox Smith Matthews Incorporated; and Mark W. Hodge, Esq., at Chisenhall, Nesturd & Julian, represent the Debtor in its restructuring efforts. The Debtor estimated $10 million to $50 million in assets and $50 million to $100 million in debts in its bankruptcy petition. HOSTESS BRANDS: Rivals Oppose Ending Ties to Pension Funds ---------------------------------------------------------- The Teamsters and bakery workers' unions are gaining support in their effort to stop Hostess Brands Inc. from dropping their multi-employer pension plans. Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that near the end of last week, four of Hostess's competitors, 10 union pension funds, a bakery industry association, and an association of multi-employer pension funds all filed papers proclaiming the inequity that would result from allowing the baker of Wonder bread to withdraw from pension plans. The objections describe the unfairness that would result from thrusting liability for underfunded pension obligations on the shoulders of those who remain contributing to the plans. Competitor Bimbo Bakeries USA Inc. previously filed papers arguing that Hostess shouldn't be permitted to "foist" on other bakers the "very same liability that they complain was unfairly imposed upon them and precludes their ability to survive." Teamsters union members voted to give leadership the ability to call a strike. As reported by the Troubled Company Reporter on Jan. 23, 2012, a trial is set to begin March 5, 2012, on the company's bid to terminate existing pensions and retiree benefits. Hostess Brands intends to reject collective bargaining agreements with the International Brotherhood of Teamsters and the Bakery, Confectionary, Tobacco Workers and Grain Millers International Union, and modify certain retiree benefit obligations, pursuant to Sections 1113(c) and 1114(g) of the Bankruptcy Code. The IBT and BCT collectively employ roughly 92% of the Debtors' union workforce. About Hostess Brands Founded in 1930, Irving, Texas-based Hostess Brands Inc., is known for iconic brands such as Butternut, Ding Dongs, Dolly Madison, Drake's, Home Pride, Ho Hos, Hostess, Merita, Nature's Pride, Twinkies and Wonder. Hostess has 36 bakeries, 565 distribution centers and 570 outlets in 49 states. Hostess filed for Chapter 11 bankruptcy protection early morning on Jan. 11, 2011 (Bankr. S.D.N.Y. Case Nos. 12-22051 through 12-22056) in White Plains, New York. Debtor-affiliates that filed separate Chapter 11 petition are IBC Sales Corporation, IBC Trucking LLC, IBC Services LLC, Interstate Brands Corporation, and MCF Legacy Inc. Hostess Brands disclosed assets of $982 million and liabilities of $1.43 billion as of Dec. 10, 2011. Debt includes $860 million on four loan agreements. Trade suppliers are owed as much as $60 million. The bankruptcy filing was made two years after predecessors Interstate Bakeries Corp. and its affiliates emerged from bankruptcy (Bankr. W.D. Mo. Case No. 04-45814). Ripplewood Holding LLC, after providing $130 million to finance the plan, obtained control of IBC's business following the prior reorganization. Hostess Brands is privately held. The new owners pursued new Chapter 11 cases to escape from what they called "uncompetitive and unsustainable" union contracts, pension plans, and health benefit programs. In 2011, Hostess retained Houlihan Lokey to explore sales of its smaller assets and individual brands. Houlihan Lokey oversaw the sale of Mrs. Cubbison's to Sugar Foods Corporation for $12 million, but was unable to sell any of Hostess' core assets. Judge Robert D. Drain oversees the case. Hostess has hired Jones Day as bankruptcy counsel; Stinson Morrison Hecker LLP as general corporate counsel and conflicts counsel; Perella Weinberg Partners LP as investment bankers, FTI Consulting, Inc. to provide an interim treasurer and additional personnel for the Debtors, and Kurtzman Carson Consultants LLC as administrative agent. Matthew Feldman, Esq., at Willkie Farr & Gallagher, and Harry Wilson, the head of turnaround and restructuring firm MAEVA Advisors, are representing the Teamsters union. Attorneys for The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union and Bakery & Confectionery Union & Industry International Pension Fund are Jeffrey R. Freund, Esq., at Bredhoff & Kaiser, P.L.L.C.; and Ancela R. Nastasi, Esq., David A. Rosenzweig, Esq., and Camisha L. Simmons, Esq., at Fulbright & Jaworski L.L.P. An official committee of unsecured creditors has been appointed in the case. The committee selected New York law firm Kramer Levin Naftalis & Frankel LLP as its counsel. Tom Mayer and Ken Eckstein will head up the legal team for the committee. The bankruptcy judge on Feb. 3 gave Hostess Brands final authority for $75 million in secured financing. IDEARC INC: High Court Declines to Hear Investors' Ch. 11 Appeal ---------------------------------------------------------------- Amanda Bransford at Bankruptcy Law360 reports that the U.S. Supreme Court on Tuesday declined to hear a group of investors' appeal of a bankruptcy court's confirmation of Verizon Communications Inc. spinoff Idearc Inc.'s reorganization plan, which they claim deprived them of their rightful ownership in the reorganized company. According to Law360, the high court denied the certiorari petition of the Spencer Ad Hoc Equity Committee, a group of prebankruptcy shareholders who contend their ownership in the reorganized corporation SuperMedia Inc. was unlawfully canceled by the Chapter 11 plan. About Idearc Inc. Headquartered in D/FW Airport, Texas, Idearc, Inc., now known as SuperMedia Inc., is the second largest U.S. yellow pages publisher. Idearc was spun off from Verizon Communications, Inc. Idearc and its affiliates filed for Chapter 11 protection on March 31, 2009 (Bankr. N.D. Tex. Lead Case No. 09-31828). The Debtors' financial condition as of Dec. 31, 2008, showed total assets of $1,815,000,000 and total debts of $9,515,000,000. Toby L. Gerber, Esq., at Fulbright & Jaworski, LLP, represented the Debtors in their restructuring efforts. The Debtors tapped Moelis & Company as their investment banker; Kurtzman Carson Consultants LLC as their claims agent. William T. Neary, the United States Trustee for Region 6, appointed six creditors to serve on the official committee of unsecured creditors. The Committee selected Mark Milbank, Tweed, Hadley & McCloy LLP, as counsel, and Haynes and Boone, LLP, co- counsel. Idearc completed its debt restructuring and its plan of reorganization became effective as of Dec. 31, 2009. In connection with its emergence from bankruptcy, Idearc changed its name to SuperMedia Inc. Under its reorganization, Idearc reduced its total debt from more than $9 billion to $2.75 billion of secured bank debt. Less than two years since leaving bankruptcy protection, SuperMedia remains in quandary. Early in October 2011, Moody's Investors Service slashed its corporate family rating for SuperMedia to Caa1 from B3 prior. The downgrade reflects Moody's belief that revenues will continue to decline at a double digit rate for the foreseeable future, leading to a steady decline in free cash flow. SuperMedia's sales were down 17% for the second quarter of 2011 in a generally improving advertising sector. Moody's ratings outlook for SuperMedia remains negative. While SuperMedia is attempting to transition the business away from its reliance on print advertising through development of online and mobile directory service applications, Moody's is increasingly concerned that the company will not be able to make this change quickly enough to stabilize the revenue base over the intermediate term. Further, the high fixed cost nature of SuperMedia's business could lead to steep margin compression, notwithstanding continued aggressive cost management. IMAGEWARE SYSTEMS: Patterson McBaine Holds 14.7% Equity Stake ------------------------------------------------------------- In an amended Schedule 13G filing with the U.S. Securities and Exchange Commission, Patterson J. McBaine and his affiliates disclosed that, as of Dec. 31, 2011, they beneficially own 9,975,599 shares of common stock of ImageWare Systems, Inc., representing 14.7% of the shares outstanding. A full-text copy of the filing is available for free at http://is.gd/rR4rzj About ImageWare Systems Headquartered in San Diego, California, ImageWare Systems, Inc. is a leader in the emerging market for software-based identity management solutions, providing biometric, secure credential, law enforcement and enterprise authorization. Its "flagship" product is the IWS Biometric Engine. Scalable for small city business or worldwide deployment, the Company's biometric engine is a multi- biometric platform that is hardware and algorithm independent, enabling the enrollment and management of unlimited population sizes. The Company's identification products are used to manage and issue secure credentials, including national IDs, passports, driver licenses, smart cards and access control credentials. Its law enforcement products provide law enforcement with integrated mug shot, fingerprint LiveScan and investigative capabilities. The Company also provides comprehensive authentication security software. The Company's balance sheet at Sept. 30, 2011, showed $4.23 million in total assets, $20 million in total liabilities and a $15.76 million total shareholders' deficit. IMAGEWARE SYSTEMS: Patterson McBaine Discloses 14.7% Equity Stake ----------------------------------------------------------------- In an amended Schedule 13G filed with the U.S. Securities and Exchange Commission, Patterson J. McBaine and his affiliates disclosed that, as of Dec. 31, 2011, they beneficially own 9,975,599 shares of common stock of Imageware Systems representing 14.7% of the shares outstanding. A full-text copy of the filing is available for free at http://is.gd/swTky1 About ImageWare Systems Headquartered in San Diego, California, ImageWare Systems, Inc. is a leader in the emerging market for software-based identity management solutions, providing biometric, secure credential, law enforcement and enterprise authorization. Its "flagship" product is the IWS Biometric Engine. Scalable for small city business or worldwide deployment, the Company's biometric engine is a multi- biometric platform that is hardware and algorithm independent, enabling the enrollment and management of unlimited population sizes. The Company's identification products are used to manage and issue secure credentials, including national IDs, passports, driver licenses, smart cards and access control credentials. Its law enforcement products provide law enforcement with integrated mug shot, fingerprint LiveScan and investigative capabilities. The Company also provides comprehensive authentication security software. The Company's balance sheet at Sept. 30, 2011, showed $4.23 million in total assets, $20 million in total liabilities, and a $15.76 million total shareholders' deficit. The Company incurred a net loss of $5.05 million in 2010 and a net loss of $12.63 million during the prior year. INNER CITY: Judge Approves $180-Mil. Sale Over US Objection ----------------------------------------------------------- Lisa Uhlman at Bankruptcy Law360 reports U.S. Bankruptcy Judge Shelley C. Chapman on Tuesday approved Inner City Media Corp.'s plan to sell itself for $180 million to creditors including billionaire Ron Burkle, overruling the U.S. government's objection that the plan constituted an attempt to dodge $31 million in taxes. Judge Chapman heard arguments from both sides at a sale hearing during which Inner City Media, which runs a number of radio stations aimed at serving black communities, stressed that a Section 363 sale was the only viable option, Law360 relates. About Inner City Media Corp. On Aug. 23, 2011, affiliates of Yucaipa and CF ICBC LLC, Fortress Credit Funding I L.P., and Drawbridge Special Opportunities Fund Ltd., signed involuntary Chapter 11 petitions for Inner City Media Corp. and its affiliates (Bankr. S.D.N.Y. Case Nos. 11-13967 to 11-13979) to collect on a $254 million debt. The Petitioning Creditors are party to the senior secured credit Facility pursuant to which they (or their predecessors in interest) extended $197 million in loans to the Alleged Debtors to be used for general corporate purposes. More than two years ago, the Alleged Debtors defaulted under the Senior Secured Credit Facility, and in any event the entire amount of principal and accrued and unpaid interest and fees became immediately due and payable on Feb. 13, 2010. Inner City Media's affiliates subject to the involuntary Chapter 11 are ICBC Broadcast Holdings, Inc., Inner-City Broadcasting Corporation of Berkeley, ICBC Broadcast Holdings-CA, Inc., ICBC- NY, L.L.C., ICBC Broadcast Holdings-NY, Inc., Urban Radio, L.L.C., Urban Radio I, L.L.C., Urban Radio II, L.L.C., Urban Radio III, L.L.C., Urban Radio IV, L.L.C., Urban Radio of Mississippi, L.L.C., and Urban Radio of South Carolina, L.L.C. Judge Shelley C. Chapman granted each of Inner City Media Corporation and its debtor affiliates relief under Chapter 11 of the United States Code. The decision came after considering the involuntary petitions, and the Debtors' answer to involuntary petitions and consent to entry of order for relief and reservation of rights. Attorneys for Yucaipa Corporate Initiatives Fund II, L.P. and Yucaipa Corporate Initiatives (Parallel) Fund II, L.P. are John J. Rapisardi, Esq., and Scott J. Greenberg, Esq., at Cadwalader, Wickersham & Taft LLP. Attorneys for CF ICBC LLC, Fortress Credit Funding I L.P., and Drawbridge Special Opportunities Fund Ltd. are Adam C. Harris, Esq., and Meghan Breen, Esq., at Schulte Roth & Zabel LLP. Akin Gump Strauss Hauer & Feld LLP serves as the Debtors' counsel. Rothschild Inc. serves as the Debtors' financial advisors and investment bankers. GCG Inc. serves as the Debtors' claims agent. 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 Inner City Media because an insufficient number of persons holding unsecured claims against the Debtor has expressed interest in serving on a committee. INTEGRATED FREIGHT: Seaside 88 Discloses 9.9% Equity Stake ---------------------------------------------------------- Seaside 88, LP, Seaside 88 Advisors, LLC, and William J. Ritger jointly filed with the U.S. Securities and Exchange Commission a Schedule 13G disclosing that, as of Jan. 26, 2012, they beneficially own 3,943,261 shares of common stock of Integrated Freight Corporation representing 9.9% of the shares outstanding. A full-text copy of the filing is available at http://is.gd/fhwYFE About Integrated Freight Integrated Freight Corporation, formerly PlanGraphics, Inc., (OTC BB: IFCR) -- http://www.integrated-freight.com/-- is a Sarasota, Florida headquartered motor freight company providing long-haul, regional and local service to its customers. The Company specializes in dry freight, refrigerated freight and haz-waste truckload services, operating primarily in well-established traffic lanes in the upper mid-West, Texas, California and the Atlantic seaboard. IFCR was formed for the purpose of acquiring and consolidating operating motor freight companies. On Aug. 19, 2010, at a special stockholders' meeting the Company approved a reverse stock split, a relocation of its State of Incorporation to Florida and a change of its name to Integrated Freight Corporation. The Company's name change and State of Incorporation have been approved and are effective as of Aug. 18, 2010. The reverse stock split has been approved but is not effective as of the date of this filing. The Company ended fiscal 2011 with a net loss of $7.76 million on $18.82 million of revenue and fiscal 2010 with a net loss of $3.14 million on $17.33 million of revenue. Sherb & Co., LLP, in Boca Raton, Florida, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses and has a negative working capital position and a stockholders' deficit. The Company's balance sheet at June 30, 2011, showed $21.44 million in total assets, $28.02 million in total liabilities, and a $6.57 million total stockholders' deficit. J.C. PENNNY: Fitch Lowers Issuer Default Rating to 'BB+' -------------------------------------------------------- Fitch Ratings has downgraded its Issuer Default Ratings (IDR) on J.C. Penney Co., Inc. and J.C. Penney Corporation, Inc. to 'BB+' from 'BBB-'. In addition, Fitch has downgraded J.C. Penney Corporation, Inc.'s senior secured bank credit facility and senior unsecured notes and debentures by a notch. The Rating Outlook is Stable. The ratings reflect significant execution risk for J.C. Penney over the next 12 -18 months as the company rolls out its new pricing and promotional strategy and addresses fundamental areas such as merchandising, costs, and investments in its store base. Fitch views many aspects of the new strategy as strategically sound and believes the company should be able to take costs out of the system to fund increased investments. However, the jury remains out on whether consumers will buy into the new pricing structure and whether or not the company can turn around faltering sales and sustainably improve the profitability of its business. Fitch assumes that the top line could contract in the high-single digit range in 2012 as J.C. Penney moves towards a more everyday low value strategy with significantly reduced promotions, a marked departure from the industry's high-low promotional strategy. In addition, sales could be disrupted by clearing out any excess merchandise as the company continues to adjust inventory levels and by remodeling activity related to rolling out the 'store- within-a-store' initiative at the beginning of 2H'12. As a result, free cash flow in 2012 is expected to be negative, and leverage is expected to be in the 3.7 times (x) to 4.3x range, which would no longer be reflective of a low investment grade rating. For 2013, if sales trends continue to be negative, leverage could remain in this range. However, if the top line starts to stabilize and gains positive traction, there is strong potential for leverage to start trending down to the low 3.0x or even the high 2.0x, at which point Fitch would consider a positive movement in the ratings or Outlook. Things are likely to get worse over the near term, and the top line could contract in the high single-digit range in 2012, with the first half of the year expected to be worse than the second half. Assuming the gross margin in 2012 is flat to 2011 levels (estimated at around 37% of sales excluding any one time charges, the lowest level over the last decade, versus an average of 39% between 2005 and 2010) and selling, general and administrative expense (SG&A) is down 6% in dollars (similar to 2011), leverage is expected to increase to the low 4.0x range from 3.7x expected for 2011. This assumes incremental debt of approximately $300 million (see liquidity section) which the company could potentially issue as it refinances the $230 million of debt maturing in August 2011. 2013: A TURNAROUND OR A TURN FOR THE WORSE? For 2013, several scenarios could play out depending on where the top line starts settling out and whether gross margin returns to the historical average of around 39%. Leverage could be around 4.0x if: -- Sales remain pressured and comparable store sales (comps) are in the negative mid-single digits; -- Gross margins remain flat to 2011 levels (around 37%); -- SG&A is down another 6-7%, assuming the company can realize targeted cost savings. This scenario could play out if the new pricing and promotional strategy does not result in client retention and J.C. Penney continues to lose share. Conversely, leverage would be close to 3.2-3.3x if comps stabilize and Fitch assumes no change in other assumptions. Should gross margins return to the 39% average, leverage could potentially trend to below 3.0x. This upside scenario could play out if the new merchandising initiatives prove successful, aided by the improved store environment from significant upcoming capital investments. 2011 RESULTS INDICATE J.C. PENNEY'S IS HOLDING SHARE Using the low end of the company's 2011 earnings per share (EPS) guidance provided in early January, Fitch assumes comps were essentially flat for the year, with total top line contraction of 3%. While a flat comp is disappointing, J.C. Penney's performance would be similar to Kohl's which reported a comp of 0.5% for 2011. At an estimated $17.3 billion, J.C. Penney's revenues would be down 13% from peak levels of $19.9 billion in 2006, although market shares are relatively flat at around 9.2% (using NAICS codes for department store industry sales). As such, J.C. Penney has muddled along and held on to share even as Kohl's has added about $3.2 billion in sales over the same time period. (Macy's sales are down modestly by approximately $600 million.) SG&A A REAL OPPORTUNITY TO TAKE OUT EXCESS COSTS & FUND INVESTMENTS Fitch views the $900 million targeted for gross SG&A reduction for 2013 as achievable. SG&A excluding non-cash pension expense is down only 4% since 2006 (with all of the decline attributable to 2011) even as sales have declined over 13% from peak levels, and the expense structure is bloated relative to its key competitors such as Kohl's and Macy's. Fitch expects a third of the cost reductions could come in 2012 and the remainder would be realized in 2013. CAPEX: COMMITMENT TO REINVEST APPROPRIATELY SHOULD BE POSITIVE LONGER TERM The savings from cost reduction are expected to fund increased and much needed capital investments. J.C. Penney expects 2012 capex to be around $800 million and potentially higher in 2013-2014. While the company has not shared its plans for 2013 and beyond, Fitch expects capex could reach north of $1 billion and potentially return to 2006-2007 levels of $1.2-1.3 billion as the company undertakes significant remodeling of its entire store base. LIQUIDITY POSITION: ADEQUATE OVERALL WITH ADDITIONAL REVOLVER CAPACITY & POTENTIAL INCREMENTAL DEBT IN 2012 Fitch expects J.C. Penney to end 2011 with a cash position of approximately $1.3 billion versus $2.6 billion in 2010. The decline reflects $900 million in share buybacks in early 2011, cash restructuring charges, the decline in EBITDA and $330 million of cash investments in the Liz Claiborne brand and an equity investment in Martha Stewart Living Omnimedia, Inc. Free cash flow could be potentially negative in 2012 by $200-300 million depending on the magnitude of sales decline. J.C. Penney's liquidity is supported by a senior secured revolving bank credit facility which was recently upsized to $1.5 billion and matures in April 2016. Fitch does not anticipate J.C. Penney drawing on the facility for seasonal working capital needs in 2012. The facility is secured by inventory and receivables with borrowings now subject to a borrowing base and as such, financial covenants based on leverage and coverage have been removed providing company with more flexibility to execute its plan. The company is now subject to a springing covenant of maintaining a fixed charge coverage of 1.0-1.1x if availability falls below a certain threshold or the company undertakes certain actions such as making restricted payments. Given the company's desire to maintain strong liquidity and the strong capital markets, Fitch expects J.C. Penney to refinance its August 2012 debt maturity of $230 million, and Fitch would not be surprised to see the company upsize and potentially issue up $500 million in total debt. The company's next debt maturity of $200 million is in 2015. J.C. Penney's pension fund remains well funded, and Fitch does not expect the company will need to make any cash contributions in 2012 and 2013. Fitch has downgraded the following ratings: J.C. Penney Co., Inc. -- IDR to 'BB+' from 'BBB-'. J.C. Penney Corporation, Inc. -- IDR to 'BB+' from 'BBB-'; -- $1.5 billion senior secured bank credit facility to 'BBB-' from 'BBB'; -- $3.1 billion senior unsecured notes and debentures to 'BB+' from 'BBB-'. The Rating Outlook is Stable. KINGBURY CORP: Wants to Hire GA Keen as Real Estate Advisor ----------------------------------------------------------- Kingsbury Corporation and its affiliates seek the Bankruptcy Court's permission to employ GA Keen Realty Advisors, LLC, as their real estate advisor in connection with the marketing and sale of real property owned by Kingsbury and located at 80 Laurel Street, Keene, New Hampshire 03431. Given the potential of approximately $2 million in equity in the Real Property, the Debtors have determined that the sale of the Real Property remains in the best interests of their estate and their creditors. To the best of the Debtors' knowledge, neither GA Keen, generally, nor any of that firm's professionals, specifically, has any connection with, or any interest adverse to, Kingsbury, Donson Group, Ltd. or Ventura Industries, LLC, creditors of those debtors, any other party-in-interest, or the Office of the United States Trustee in Manchester, New Hampshire. Under the Retention Agreement, GA Keen is entitled to receive: (1) a Transactional Fee in the amount of 5% of the Gross Proceeds resulting from the sale of the Real Property; or (2) a Credit Bid Fee/Withdrawal of the Property Fee in the amount of $40,000 in the event of a successful credit bid, or the Real Property is removed from GA Keen's scope of services. All reasonable out-of-pocket costs and expenses incurred by GA Keen in connection with the performance of the services will be borne by GA Keen, but Kingsbury will be responsible for costs associated with marketing the Real Property as well as all out-of- pocket due diligence costs and expenses. About Kingsbury Corp. Kingsbury Corp. -- http://www.kingsburycorp.com/-- makes and assembles machine systems. Kingsbury Corporation and affiliate Ventura Industries, LLC, filed Chapter 11 petition (Bankr. D. N.H. Case Nos. 11-13671 and 11-13687) on Sept. 30, 2011. Jennifer Rood, Esq., and Robert J. Keach, Esq., at Berstein, Shur, Sawyer & Nelson, serve as counsel to the Debtors. Donnelly Penman & Partners serves as its investment banker. In its schedules, the Debtor disclosed $10,134,679 in assets, and $24,534,973 in liabilities as of the petition date. William K. Harrington, the U.S. Trustee for Region 1, appointed five members to serve on the Official Committee of Unsecured Creditors of Kingsbury Corporation. KM ASSOCIATES: Hires Gianola Barnum as Bankruptcy Counsel --------------------------------------------------------- KM Associates, LLC, said it requires the services of counsel to ensure its compliance with applicable provisions of the Bankruptcy Code, the Bankruptcy Rules, and other applicable statutes and procedural constraints, and to maximize the likelihood of a successful reorganization. In this regard, the Debtor seeks Bankruptcy Court authority to employ Gianola, Barnum, Wigal & London, L.C. as counsel. The Firm proposes to charge fees based upon its prevailing hourly guideline rates which are set at $250 for the Firm?s attorneys. David M. Jecklin, Esq., a member at Gianola, attests that the Firm is not connected with the Debtor, its other attorneys, accountants, or creditors; and represents no other party in interest and that it neither represents nor holds any interest adverse to the Debtor or the estate and that the employment of the Firm would be in the best interest of the estate. About KM Associates KM Associates, LLC, filed a Chapter 11 bankruptcy petition (Bankr. S.D. W.Va. Case No. 12-bk-20041) on Jan. 30, 2012. The petition was signed by Donald S. Simpson, managing member. The Debtor, a Single Asset Real Estate under 11 U.S.C. Sec. 101 (51B), disclosed assets of $17.3 million and liabilities of $26.5 million. Bank lenders The CNB Bank, Standard Bank PaSB First United Bank & Trust, Progressive Bank, N.A., Citizens Bank of West Virginia, Inc. and Farmers and Merchants Bank of Western Pennsylvania, National Association, are represented by Arthur M. Standish, Esq., and Kristian J. Jamieson, Esq. -- art.standish@steptoe-johnson.com and kristian.jamieson@steptoe-johnson.com -- at Steptoe & Johnson PLLC. KM ASSOCIATES: Taps CFO Strategies for Accounting Services ---------------------------------------------------------- KM Associates, LLC, has filed an Application to Employ Brian Riffle as its accountants. The Debtor said it requires the service of accountants to ensure its compliance with applicable provisions of the Bankruptcy Code, the Bankruptcy Rules, with regard to financial reporting and accounting, and to maximize the likelihood of a successful reorganization. The Debtor desires to employ Brian Riffle of CFO Strategies, at 838 Hurton Street, Johnstown, Pennsylvania, for these purposes. The Firm proposes to charge fees based upon its prevailing hourly guideline rates which are set at $125 for the Accountant. Mr. Riffle attests that the Firm is not connected with the Debtor, its other attorneys, accountants, or creditors; and neither represents nor holds any interest adverse to the Debtor or the estate. The Troubled Company Reporter on Feb. 20, 2012, reported that the Debtor also has sought Court authorization to employ Deborah L. Herbert, CPA of Herbert CPA & Associates, PC, as accountant. About KM Associates KM Associates, LLC, filed a Chapter 11 bankruptcy petition (Bankr. S.D. W.Va. Case No. 12-bk-20041) on Jan. 30, 2012. The petition was signed by Donald S. Simpson, managing member. The Debtor, a Single Asset Real Estate under 11 U.S.C. Sec. 101 (51B), disclosed assets of $17.3 million and liabilities of $26.5 million. Bank lenders The CNB Bank, Standard Bank PaSB First United Bank & Trust, Progressive Bank, N.A., Citizens Bank of West Virginia, Inc. and Farmers and Merchants Bank of Western Pennsylvania, National Association, are represented by Arthur M. Standish, Esq., and Kristian J. Jamieson, Esq., at Steptoe & Johnson PLLC. KM ASSOCIATES: Cash Access Facing Challenge from Banks ------------------------------------------------------ KM Associates, LLC, returned to the Bankruptcy Court Wednesday, Feb. 22, to seek interim approval of its request to use cash collateral where it is facing a challenge from its bank lenders. The Debtor's major source of funds with which to operate is from rental income from leased property of the Shops at Kanawha Mall located at 5707 MacCorkle Ave., Charleston, West Virginia. As of Jan. 30, 2012, Debtor's major assets had an approximate value of $17,000,000. The Debtor said Thistle Financial Group, LLC, Citizens National Bank, CNB Bank, First United Bank & Trust, Merchants National Bank of Kittanning, Progressive Bank, NA, and Standard Bank PaSB currently hold perfected security interests in the form of a Deed of Trusts on the real estate located in the Shops at Kanawha Mall. The Debtor had said if it is unable to use the cash balance on hand at the commencement of its case and the proceeds received during the case, it would be forced to terminate its operations. Since the filing of the petition, Debtor has only paid its obligations in a manner consistent with operating in the ordinary cause of business. As reported by the Troubled Company Reporter on Feb. 20, 2012, The CNB Bank, Standard Bank PaSB First United Bank & Trust, Progressive Bank, N.A., Citizens Bank of West Virginia, Inc. and Farmers and Merchants Bank of Western Pennsylvania, National Association, are asking the Court to prohibit the Debtor's use of cash collateral. The lenders said the rental payments constitute "cash collateral" and they do not consent to the use of cash collateral. On July 20, 2007, KM Associates executed and delivered to Thistle Financial Group, as agent for the benefit of CNB Bank, Standard Bank PaSB, First United Bank & Trust, Progressive Bank N.A., Citizens National Bank, and Merchants National Bank of Kittaning, six construction and term loan promissory notes totaling $17,134,420. Pursuant to a forbearance agreement dated July 31, 2011, KM Associates acknowledged its defaults in the payment of the Indebtedness and its violation of certain covenants contained in the loan documents associated with the Notes and agreed to make monthly principal reduction payments in addition to regulator monthly instalment payments on the Indebtedness, beginning Aug. 1, 2011, with a final payment of all outstanding principal, accrued and unpaid interest and fees due on Oct. 31, 2011. KM Associates defaulted on its obligations under the Forbearance Agreement, and as of Jan. 31, 2012, remained indebted to the Lenders for $24,336,494. As a result of KM Associate's defaults under the terms of the Forbearance Agreement, the Lenders proceeded with foreclosure preparations relative to the Real Estate, with a sale having been set pursuant to the terms of the first priority Deed of Trust for Jan. 31, 2012. On Dec. 16, 2011, as a result of KM Associate's defaults under the Notes and the Forbearance Agreement, the Lenders began notifying tenants of the Real Estate that they were enforcing their rights under the Assignment of Rents and requested that the tenants re- direct rent payments to a lockbox account maintained with CNB Bank. The Debtor has repeatedly interfered with the Lenders right to receive the rents derived from the Real Estate by retaining rent payments that had been sent directly to the Debtor for the month of January 2012 and by contacting tenants directly to request that they not comply with the Lenders instructions, despite the Debtor's awareness that the Lenders notified tenants on Dec. 16, 2011 to re-direct rent payments to the account maintained with CNB Bank. About KM Associates KM Associates, LLC, filed a Chapter 11 bankruptcy petition (Bankr. S.D. W.Va. Case No. 12-bk-20041) on Jan. 30, 2012. The petition was signed by Donald S. Simpson, managing member. The Debtor, a Single Asset Real Estate under 11 U.S.C. Sec. 101 (51B), disclosed assets of $17.3 million and liabilities of $26.5 million. Bank lenders The CNB Bank, Standard Bank PaSB First United Bank & Trust, Progressive Bank, N.A., Citizens Bank of West Virginia, Inc. and Farmers and Merchants Bank of Western Pennsylvania, National Association, are represented by Arthur M. Standish, Esq., and Kristian J. Jamieson, Esq., at Steptoe & Johnson PLLC. LEE ENTERPRISES: Regains Compliance With NYSE Share Price Standard ------------------------------------------------------------------ Lee Enterprises, Incorporated has received notification that it has returned to compliance with the New York Stock Exchange's share price standard. In a letter dated Feb. 17, 2012, the NYSE confirmed that Lee is again in compliance with its standard requiring listed companies to maintain an average closing price of at least $1.00 per share over 30 consecutive days of trading. Mary Junck, Lee chairman and chief executive officer, said: "As we expected, investor sentiment has improved with the implementation of our refinancing agreements on January 30. We appreciate the confidence of our stockholders as we advance our many initiatives to drive revenue, build even larger audiences and resume overall growth." Carl Schmidt, Lee vice president, chief financial officer and treasurer, said the company still has approximately one year remaining under an approved plan, subject to ongoing oversight, for returning to compliance with an NYSE standard requiring market capitalization of not less than $50 million over 30 consecutive days of trading. As of Feb. 17, 2012, with approximately 51.7 million shares outstanding and a closing price of $1.13 per share, Lee's market capitalization totaled $58.4 million. Schmidt said that if the company's average market capitalization remains in excess of $50 million, the NYSE will consider granting a return to compliance in February 2013, or possibly sooner, based on market capitalization over at least two consecutive quarterly monitoring periods. About Lee Enterprises Lee Enterprises, Incorporated, 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. Lee Enterprises and certain of its affiliates filed for Chapter 11 (Bankr. D. Del. Lead Case No. 11-13918) on Dec. 12, 2011, with a prepackaged plan of reorganization. The Debtor selected Sidley Austin LLP as its general reorganization and bankruptcy counsel, and Young Conaway Stargatt & Taylor LLP as co-counsel; The Blackstone Group as Financial and Asset Management Consultant; and The Debtor disclosed total assets of $1.15 billion and total liabilities of $1.25 billion at Sept. 25, 2011. Deutsche Bank Trust Company Americas, as DIP Agent and Prepetition Agent, is represented in the Debtors' cases by Sandeep "Sandy" Qusba, Esq., and Terry Sanders, Esq., at Simpson Thacher & Bartlett LLP. Certain Holders of Prepetition Credit Agreement Claims, Goldman Sachs Lending Partners LLC, Mutual Quest Fund, Monarch Master Funding Ltd, Mudrick Distressed Opportunity Fund Global, LP and Blackwell Partners, LLC have committed to acquire up to a maximum amount of $166.25 million of loans under a New Second Lien Term Loan Facility pursuant to the Reorganization Plan. This commitment also includes the potential payment of up to $10 million as backstop cash to Reorganized Lee Enterprises to acquire the loans. The Initial Backstop Lenders are represented by Matthew S. Barr, Esq., and Brian Kinney, Esq., at Milbank, Tweed, Hadley & McCloy LLP. On Jan. 23, 2012, Lee Enterprises, et al., won confirmation of a second version of their prepackaged Chapter 11 plan of reorganization. Lee Enterprises Inc. declared its prepackaged plan of reorganization effective on Jan. 30, 2012. * * * This concludes the Troubled Company Reporter's coverage of Lee Enterprises, Incorporated, until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. LEHMAN BROTHERS: U.S. Bank Opposes Claim Transfer ------------------------------------------------- U.S. Bank National Association, as trustee for the Emeralds, Series 2006-1 Trust, was appointed under the Series Trust Agreement between Lehman Brothers Inc., as Depositor, and the Trustee for the Emeralds, Series 2006-1 Certificates. The Trustee entered into an interest rate swap under a Master Agreement between the Trust and Lehman Brothers Special Finance Inc., the Schedule to Master Agreement, a Guarantee of Lehman Brothers Holdings Inc. and the Interest Rate Swap Confirmation. After LBHI and LBSF commenced their Chapter 11 cases, the Trustee terminated the IRS Transaction by Notice of Early Termination on September 22, 2008, designating September 23, 2008, as the early termination date. In September 2009, the Trustee filed Claim No. 30985 against LBSF under the Trust Agreements and the IRS Transaction for certain fees, expenses and unliquidated amounts relating to the bankruptcy filings of LBSF and LBHI and the termination of the IRS Transaction. On January 9, 2012, Jerome Keating and Robert Franz unilaterally, and without authorization from the Trustee, filed separately a notice to transfer the Claim, Laura E. Appleby, Esq., at Chapman and Cutler LLP, in New York -- appleby@chapman.com -- contends, on behalf of U.S. Bank. She argues that the Trustee disputes the authority of Messrs. Keating and Franz to transfer the Claim without consent or authorization from the Trustee. Ms. Appleby asserts that the Trustee filed the Claim on behalf of the Trust, and while beneficial holders of the Certificates may receive the benefits of the filing, the Claim belongs to the Trust. She adds that the Trustee does not even know whether the Alleged Transferees are, in fact, Certificateholders for they failed to evince proper beneficial ownership of the Certificates by providing the Trustee with a Certificate of Beneficial Interest. Hence, the Trustee asks the Court to reject the attempted Claim Transfer and to reaffirm that the claim is property of the Trust. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: HSBC Bank to Return $52-Mil. to Debtor ------------------------------------------------------- HSBC Bank Plc will return about $52 million to Lehman Brothers Holdings Inc. in the latest stage of a transfer of collateral, Bloomberg News reported. The bank originally held about $450 million of Lehman assets in Eurodollar accounts, some of which are offset by its claims against the company. A copy of the agreement governing the turnover of funds can be accessed at http://bankrupt.com/misc/LBHI_StipHSBCFunds.pdf About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Asks 2nd Cir. to Block Intervention in Dante Case ------------------------------------------------------------------ Lehman Brothers Special Financing Inc. asked the Second Circuit to block continued efforts by liquidators of Lehman Brothers Australia Ltd. and noteholders to intervene in a lawsuit involving the so-called Dante program, BankruptcyLaw360 reported. Early last year, the U.S. Bankruptcy Court in Manhattan did not allow the Dante noteholders and the liquidators to intervene in one of more than 50 lawsuits LBSF brought based on a stay order halting those lawsuits. Last month, the bankruptcy court also overruled an objection by LB Australia's liquidators to another six-month stay on the lawsuits. The liquidators filed an objection out of concern that the lawsuits would be delayed further by another extension of the stay, according to court filings. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Dist. Judge Sends Suit vs. Fund to State Court --------------------------------------------------------------- A district judge in Illinois sent back a lawsuit by an investor against Lehman Brothers Real Estate Fund III LP to state court for lack of sufficient connection to the Lehman parent's bankruptcy, according to a January 30 report by Bloomberg News. Investors sued the fund in state court in Illinois, saying they were duped into investing by a false and misleading private placement memorandum. The Lehman fund, which isn't in bankruptcy, removed the suit to federal court in New York, saying it was "related to" Lehman Brothers Holdings Inc.'s bankruptcy. The investors filed a motion to remand the suit to state court while the fund sought to transfer the suit to New York. The fund argued there was connection with the Lehman bankruptcy because LBHI purchased the insurance policy that would pay the investors' claims. However, Judge Rebecca Pallmeyer of the U.S. District Court for the Northern District of Illinois, Eastern Division, did not find sufficient connection, saying that although the policy could be considered property of LBHI's bankrupt estate, proceeds of that policy were not. The district judge also said "it is not clear" that LBHI would become liable to pay a judgment if insurance coverage were insufficient or exhausted. For lack of sufficient connection with bankruptcy, Judge Pallmeyer said there was no bankruptcy jurisdiction and sent the case back to state court, Bloomberg News reported. The lawsuit is Mazzolin v. Lehman Brothers Real Estate Fund III LP, 11-953, U.S. District Court, Northern District Illinois (Chicago). Separately, another district judge rejected an attempt by former Lehman investors to move their $640 million fraud case against the company's real estate and private equity affiliates back to New York state court, Law360 reported. Judge Barbara Jones for the U.S. District Court for the Southern District of New York denied a motion to remand by a group of Lehman investors led by Virginia resident Barbara Fried, ruling that two of the seventeen counts in the case fall under federal jurisdiction. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Principal Life Wants to Set Off $13.6-Mil. ----------------------------------------------------------- Principal Life Insurance Company has filed a motion to lift the automatic stay so that it could set off more than $13.6 million it owes to Lehman Brothers Special Financing Inc. against the company's debt to the insurance firm. Principal Life owes $13,637,229 to the Lehman unit while the latter owes $34,163,288 to the Iowa-based insurance firm. The insurance firm is also seeking a court ruling allowing its net claim in the sum of $20,526,059 as a Class 4A claim against LBSF and a Class 9A claim against Lehman Brothers Holding Inc. under their Chapter 11 plan. Principal Life's claim stemmed from an agreement with LBSF connected with the issuance of commercial paper notes by a special purpose entity sponsored by the Lehman unit. LBSF's obligations under the deal were guaranteed by its parent. The hearing on the motion is set for March 21, 2012. Objections are due by March 14, 2012. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: Seeks to Block Ex-Employee's Affirmative Claims ---------------------------------------------------------------- A lawyer for Lehman Brothers Holdings Inc. has filed court papers to block a former employee from prosecuting "affirmative claims" against the company in an arbitration case pending before the Financial Industry Regulatory Authority. Phillip Walsh, a former employee of Lehman's brokerage firm, previously sought a court ruling determining that the automatic stay does not prevent him from prosecuting his counter-claim against the company. Mr. Walsh, who said he was summarily terminated after the brokerage firm was put under liquidation in 2008, filed a counter-claim in response to the arbitration case, accusing Lehman of concealing its financial status in the months leading up to its bankruptcy. Lehman's lawyer, Richard Krasnow, Esq., at Weil Gotshal & Manges LLP, in New York, said the former employee did not comply with the court-approved procedures for filing claims and is barred from prosecuting assertive claims against Lehman. Mr. Krasnow, however, said they are open to the lifting of the stay to allow Mr. Walsh "to assert defenses and defensive counterclaims." Lehman Brothers is also opposing a bid by Jason Taylor, a former investment representative of Lehman's brokerage, to assert affirmative claims. Taylor previously asked the U.S. Bankruptcy Court for the Southern District of New York to issue an order determining that the automatic stay does not prevent him from prosecuting a counter-claim against the company. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHMAN BROTHERS: LBI Lease Decision Period Expires June 4 --------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York extended to June 4, 2012, the deadline for Lehman Brothers Inc.'s trustee to assume, assign or reject the brokerage's executory contracts and unexpired leases. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Additional units, Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC, sought for bankruptcy protection in December 2009 or more than a year after LBHI and its other affiliates filed their bankruptcy cases. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court has approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) LEHR CONSTRUCTION: Trustee Taps Solomon for N.J. Litigation ----------------------------------------------------------- Jonathan L. Flaxer, as Chapter 11 trustee for the estate of Lehr Construction Corp., asks the Court for entry of an order authorizing the retention of Law Offices of Moshie Solomon, P.C., as special counsel to the Trustee. As counsel, the Solomon Firm will represent the Trustee as New Jersey counsel in the New Jersey Litigation. The Solomon Firm Law will coordinate with the Trustee's general counsel, Galenbock Eiseman Assox Bell & Peskoe LLP, to avoid duplication of effort. Douglas L. Furth, Esq., of Galenbock Eiseman Assox Bell & Peskoe LLP, tells the Court that it is necessary fox the Trustee to retain New Jersey counsel. The Trustee has selected the Solomon Firm to represent him as New Jersey counsel in litigation captioned Lehr Construction Corp. v. Kathy S. Chatterton, et al., Case Adv. No. 08-02502 (NLW), which the Debtor commenced in the United States Bankruptcy Court for the District of New Jersey prior to the Petition Date. The Chatterton Litigation is an asset of the Estate that the Trustee intends to prosecute for the benefit of the Estate and its creditors. The New Jersey Litigation is bankruptcy-related litigation that is related to a Chapter 7 case captioned In re T2, Inc. Case No. 06-20572 (NLW) that is also pending in the New Jersey Bankruptcy Court. Moshie Solomon, Esq., has the necessary background and experience to provide effective local counsel representation in the New Jersey Litigation. He is admitted as an attorney-at-law of the State of New Jersey and is admitted to practice before the United States District Court far the District of New Jersey. Mr. Solomon is an experienced bankruptcy practitioner who concentrates his practice in bankruptcy, civil litigation, and general corporate matters. He has experience representing trustees in Chapter 7 and Chapter 11 cases. To the best of the Trustee's knowledge, the Solomon Firm does not have any connection with, or any interest adverse to, the Debtor, its creditors, any other party in interest or their respective attorneys and accountants. About Lehr Construction New York-based Lehr Construction Corp. was founded in 1979. It specializes in interior construction and serves clients mainly throughout the New York metropolitan area. It serves as construction manager and general contractor for its clients Lehr filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 11-10723) on Feb. 21, 2011. James A. Beldner, Esq., at Cooley LLP, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. Jonathan Flaxer is the Chapter 11 Trustee for Lehr Construction. He is represented by Douglas L. Furth, Esq., at Goldenbock Eiseman Assor Bell & Peskoe LLP, in New York. Wolf Haldenstein Adler Freeman & Hertz serves as conflicts counsel to the trustee. Tracy Hope Davis, the U.S. Trustee for Region 2, appointed five creditors to serve on the Official Committee of Unsecured Creditors in the Debtor's case. LYMAN LUMBER: Obtains Court OK to Hire Eau Claire as Realtor ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Minnesota authorized Lyman Holding Company, et al, to employ Eau Claire Realty, Inc., to represent or assist them in marketing, locating a buyer for, and negotiating the sale of real property located at Lot 34, Shorewood Heights, City of Eau Claire, Wisconsin. The Debtors agreed to the terms of a listing agreement with ECR on Jan. 23, 2012. Under the listing agreement, ECR will receive a 6% commission from the sale, of which 40% may be paid to a buyer's agent. About Lyman Lumber Lyman Lumber Company sells building supplies, such as framing beams, roofing materials, siding and drywall to residential builders. The 113-year old company and several affiliates sought Chapter 11 petition (Bankr. D. Minn. Lead Case No. 11-45190) on Aug. 4, 2011. Judge Dennis O'Brien presides over the cases. Lyman Lumber estimated $50 million to $100 million in assets and $100 million to $500 million in debts. The petition was signed by James E. Hurd, president and chief executive officer. The affiliates that filed for Chapter 11 are: Lyman Holding Company; Automated Building Components, Inc.; Building Material Wholesalers; Carpentry Contractors Corp.; Construction Mortgage Investors Co.; Lyman Development Co.; Lyman Lumber of Wisconsin, Inc.; Lyman properties LLC; Mid-America Cedar, Inc.; Woodinville Lumber, Inc.; and Woodinville Construction Services LLC. Cynthia A. Moyer, Esq., Douglas W. Kassebaum, Esq., James L. Baillie, Esq., and Sarah M. Gibbs, Esq., at Fredrikson & Bryon, P.A., serve as bankruptcy counsel. BGA Management, LLC d/b/a Alliance Management, developed and executed a sale process and marketing strategy for the Debtors' assets. The Official Committee of Unsecured Creditors of Lyman Lumber Company tapped Fafinsky, Mark & Johnson, P.A., as its counsel. Alliance Management is the financial and turnaround consultant. When they filed for bankruptcy, the Debtors had in hand a term sheet with SP Asset Management, LLC, a unit of Steel Partners Holdings L.P., to serve as stalking horse bidder for the assets of the Debtors. New York City-based Steel Partners is a diversified holding company that owns and operates businesses in a variety of industries. MARC BARNES: Response to Claim Objection Waives Service Defect -------------------------------------------------------------- Marc S. and Anne M. Barnes did not serve their First Omnibus Objection to Claims on FDIC-insured banks in the manner required by Fed. R. Bankr. P. 7004(h). However, Bankruptcy Judge S. Martin Teel, Jr., said Baltimore County Savings Bank, FSB, waived the defect in service when it filed a response to the First Omnibus Objection to Claims. In a Feb. 16, 2012 Memorandum Decision and Order available at http://is.gd/s3tLJyfrom Leagle.com, Judge Teel directed the Debtors to serve their First Omnibus Objection to Claims on FDIC-insured banks other than Baltimore County Savings Bank in the manner required by Fed. R. Bankr. P. 7004(h) by March 1, 2012. A list of FDIC-insured banks is available at http://www3.fdic.gov/idasp/ About Marc Barnes and Okie Dokie Marc S. and Anne M. Barnes filed for Chapter 11 bankruptcy (Bankr. D. D.C. Case No. 10-00743) on July 26, 2010, to ward off creditors of his Love and the Park at 14th nightclubs in Washington D.C. and ensure the pending sale of Love, a four-story mega club, goes off without a hitch. Okie Dokie Inc., the corporate entity, also filed for Chapter 11 bankruptcy protection (Bankr. D. D.C. Case No. 10-00747). Judge S. Martin Teel, Jr. presides over the case. Kim Yvette Johnson, Esq., in Laurel, Maryland, serves as bankruptcy counsel. In its Chapter 11 petition, Park said it has up to $50,000 in assets and between $1 million and $10 million in debts. Okie Dokie, Mr. Barnes and Love estimated $1 million to $10 million in assets and debts. MEDICAL INTERNATIONAL: Incurs $235,000 Net Loss in Dec. 31 Qtr. --------------------------------------------------------------- Medical International Technology, Inc., filed with the U.S. Securities and Exchange Commission a Form 10-Q reporting a net loss of $235,153 on $74,836 of sales for the three months ended Dec. 31, 2011, compared with a net loss of $71,587 on $65,185 of sales for the same period during the prior year. The Company reported a net loss of US$643,439 on US$437,378 of revenues for fiscal 2011, compared with a net loss of US$751,109 on US$510,893 of revenues for fiscal 2010. The Company's balance sheet at Dec. 31, 2011, showed $918,706 in total assets, $1.78 million in total liabilities and a $863,031 total stockholders' deficit. PS Stephenson & Co., P.C., in Wharton, Texas, expressed substantial doubt about Medical International Technology's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and has a working capital deficiency. A full-text copy of the Form 10-Q is available for free at: http://is.gd/z6yCs8 About Medical International Montreal, Canada-based Medical International Technology, Inc., specializes in production, marketing and the sale of needle-free jet injector products designed for humans and animals, for single and mass injections. MF GLOBAL: Ch. 11 Trustee Asks for March Extension of Schedules --------------------------------------------------------------- Louis J. Freeh, the Chapter 11 Trustee for the bankruptcy cases of MF Global Holdings Ltd. and its affiliates, is asking Judge Martin Glenn to extend until March 19 the deadline to file their schedules of assets and liabilities and statements of financial affairs. Judge Glenn previously extended the deadline for the Chapter 11 Trustee to file the Debtors' schedules of assets and liabilities and statements of financial affairs to February 17. The Chapter 11 Trustee asked for further extension of the February 17 deadline explaining to the Court that some of the Schedules and Statements are maintained by the SIPA Trustee and the administrator of the proceedings of the affiliates in the United Kingdom and that each of them has competing duties that occasionally take priority over the gathering and release of information for and to the Debtors' estates. About MF Global New York-based MF Global (NYSE: MF) -- http://www.mfglobal.com/ -- is one of the world's leading brokers of commodities and listed derivatives. MF Global provides access to more than 70 exchanges around the world. The firm is also one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11- 15059 and 11-5058) on Oct. 31, 2011, after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. It is easily the largest bankruptcy filing so far this year. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. MFGH's subsidiaries MF Global Capital LLC, MF Global FX Clear LLC and MF Global Market Services, LLC filed for bankruptcy protection on December 19, 2011. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. Seven directors of MF Global Holdings resigned from their posts on Nov. 28, 2011. U.S. regulators are investigating about $633 million missing from MF Global customer accounts, a person briefed on the matter said Nov. 3, according to Bloomberg News. The New York Stock Exchange has removed MFGI securities from listing. Bankruptcy Creditors' Service, Inc., publishes MF GLOBAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by MF Global Holdings and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) MF GLOBAL: Outten & Golden Named Counsel in Warn Class Suit ----------------------------------------------------------- Judge Martin Glenn appointed Outten & Golden, LLP, as interim counsel in a consolidated class action filed by former MF Global workers asserting claims under the federal Worker Adjustment and Retraining Notification Act and the New York State Workers Adjustment Retraining Act. Judge Glenn also dismissed as duplicative the WARN Act action captioned Greene v. MF Global Holdings Ltd, Adv. Proc. No. 11- 02921, filed by Harwood Feffer LLP on Dec. 1, 2011. The consolidated WARN Act class actions are: (1) Abruzzo v. MF Global Holdings Ltd, Adv. Proc. No. 11-02882, filed by Lankenau & Miller, LLP and The Gardner Firm, P.C.; (2) Sivova v. MF Global Holdings Ltd, Adv. Proc. No. 11-02881, filed by Outten & Golden LLP; and (3) Thielmann v. MF Global Finance USA, Inc., Adv. Proc. No. 11-02880 was filed by Klehr, Harrison, Harvey, Branzburg, LLP. Counsel for the Thielmann Action sought the dismissal of the Greene Action complaining that the suit is a copycat complaint that adds nothing to the earlier filed Thielmann Action. In appointing Outten & Golden as interim counsel, Judge Glenn said administrative and judicial efficiency is best served by appointing only one law firm as interim counsel. Judge Glenn also noted that while all firms representing the plaintiffs in each action are capable, Outten & Golden was the first to file a complaint against the Debtors. A full-text copy of the memorandum of opinion and order dated Jan. 30, 2012 is available for free at: http://bankrupt.com/misc/MFGlobal_Jan30MemoOpinion.pdf About MF Global New York-based MF Global (NYSE: MF) -- http://www.mfglobal.com/ -- is one of the world's leading brokers of commodities and listed derivatives. MF Global provides access to more than 70 exchanges around the world. The firm is also one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11- 15059 and 11-5058) on Oct. 31, 2011, after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. It is easily the largest bankruptcy filing so far this year. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. MFGH's subsidiaries MF Global Capital LLC, MF Global FX Clear LLC and MF Global Market Services, LLC filed for bankruptcy protection on December 19, 2011. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. Seven directors of MF Global Holdings resigned from their posts on Nov. 28, 2011. U.S. regulators are investigating about $633 million missing from MF Global customer accounts, a person briefed on the matter said Nov. 3, according to Bloomberg News. The New York Stock Exchange has removed MFGI securities from listing. Bankruptcy Creditors' Service, Inc., publishes MF GLOBAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by MF Global Holdings and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) MG GLOBAL: Status Report on Physical Assets Raises Questions ------------------------------------------------------------ Counsel to the SIPA Trustee, James B. Kobak, Esq., at Hughes Hubbard & Reed LLP, in New York, informed the Court that the SIPA Trustee received 12 customer responses to its Jan. 23 Order directing MF Global Inc. customer, or their representatives, claiming property in the form of physical assets to provide written evidence of any physical property that the customer contends has not been accounted for by the SIPA Trustee with respect to the quantity and type of physical property held. Physical assets include warehouse receipts, precious metal certificates, shipping certificates, and other certificates or other documents of title. According to Mr. Kobak, the responses simply sought confirmation of the amount and type of Physicals held by the SIPA Trustee on their behalf. He said 10 of the responses noted that the number and type of Physicals held by the SIPA Trustee was consistent with the customer's records. The remaining two Customers, he said, do not meet the criteria regarding the potential discrepancies in the amount or type of Physicals as contemplated by the Jan. 23 Order. One customer, Daria Fane, challenged the valuation of her total account value and seeks that the Physicals not be liquidated until the parties can reach agreement. Mr. Kobak explained that the methodology used to calculate the amount required to be deposited was uniform among all customers; that Ms. Fane was provided with the various amounts used in the calculations; and, as with all other similarly situated customers, her rights to dispute anything about the SIPA Trustee's treatment of this property is reserved for the expedited claims process. Another customer, Paul Hamann, contended that warehouse receipts should be treated as "securities," presumably under the SIPA. Upon consultation with Mr. Hamann, he agreed that his issue is best suited to be raised after the determination of his customer claim, according to Mr. Kobak. Mr. Kobak told Judge Glenn that the issues raised by Ms. Fane and Mr. Hamann would be more appropriately addressed through the claims process. He noted that there had been several pre- existing investigations into potential discrepancies between the number and type of Physicals held by the SIPA Trustee for MFGI's former customers. Each of these pre-existing investigations centered around a customer's pre-SIPA liquidation request to MFGI to have their Physicals transferred from MFGI, he related. Upon investigation, the SIPA Trustee was able to confirm whether or not those requests had been processed by MFGI pre-SIPA liquidation and reflected on the books and records of MFGI, he said. There is now no discrepancy between the number and type of Physicals currently being held by the SIPA Trustee, he insisted. Status Report MF Global Bankruptcy News, Issue No. 10, reported that the SIPA Trustee apprised the Court on the status of the bulk transfer of certificates of title and warehouse receipts that were held by MFGI for its commodities customers at the time of its liquidation per the Court's Dec. 9, 2011 instructions. Based on the review of MFGI's books and records, at the time of MFGI's liquidation, 151 of MFGI' s commodities customers' accounts held 1,616 individual Physical Assets, primarily precious metal certificates (gold, silver, copper and the like) and agricultural commodities (soybean oil, soybeans, rice, etc.). The value of the Physical Assets changes based on the underlying prices of the Physical Assets, but the estimated value of the Physicals is in the range of $100 to $130 million. Counsel to the SIPA Trustee, James B. Kobak, Esq., at Hughes Hubbard & Reed LLP, in New York, discloses that on December 2, 2011, the SIPA Trustee's counsel held a telephonic conference to inform attorneys representing Physicals' holders that the SIPA Trustee had sought the Court's permission to include the Physicals as part of the third bulk transfer and discussed the implementation impediments. To resolve objections, the SIPA Trustee offered more information on the request to transfer Physicals along with the cash assets. The Court authorized the SIPA Trustee to proceed with the third bulk transfer. On December 19, 2011, the SIPA Trustee's counsel held a telephonic conference with certain attorneys for Physicals holders to discuss the mechanisms for the transfers of Physicals in the third bulk transfer. The options are: (1) The customer could deposit the difference in cash with the SIPA Trustee; (2) The customer could opt to liquidate all of the customer's Physicals and receive the bulk transfer distribution entirely in cash; (3) The customer could select which Physicals to liquidate to bring the value of the remaining Physicals under the 72% threshold and receive the remaining Physicals (plus cash) in the customer's bulk transfer distribution; additionally, rather than have the SIPA Trustee directly liquidate the Physicals, the customer could receive Physicals -- on a one -- day restricted basis -- to deliver them for sale and the proceeds would be returned to the SIPA Trustee for ultimate distribution; and (4) The customer could negotiate with a receiving FCM to post the Difference the customer would be required to provide on the customer's behalf and likely encumber the Physicals upon transfer until the loan is repaid. With respect to the fourth option, Vincent Schmeltz, Esq., at Barnes & Thornburg LLP, in Chicago, Illinois, counsel for certain Physical holders, proposed that he could speak to several FCMs and see if any would consider taking all such similarly situated customers en masse. By e-mail and Web site posting on January 11, 2012, the SIPA Trustee alerted all customers to the four options and explained that he would liquidate their Physicals after January 31, 2012, and make bulk transfer distributions of their true up amount following this liquidation. As of January 12, 2012, 1,112 of the 1,616 Physicals have been transferred via bulk transfer to receiving FCMs or delivered to receiving FCMs on a restricted basis to make delivery against the customers' outstanding obligations to sell them, with the proceeds returned to MFGI for pro rata bulk transfer back to the customer, Mr. Kobak discloses. These 1,112 Physicals were held in 37 of the 151 affected accounts, he notes. For the remaining 504 Physicals (associated with 114 accounts), the total value of the Physicals exceeds 72% of the accounts' combined net liquidating value, he states. The SIPA Trustee will work diligently to implement the customers' chosen option, Mr. Kobak adds. About MF Global New York-based MF Global (NYSE: MF) -- http://www.mfglobal.com/ -- is one of the world's leading brokers of commodities and listed derivatives. MF Global provides access to more than 70 exchanges around the world. The firm is also one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11- 15059 and 11-5058) on Oct. 31, 2011, after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. It is easily the largest bankruptcy filing so far this year. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. MFGH's subsidiaries MF Global Capital LLC, MF Global FX Clear LLC and MF Global Market Services, LLC filed for bankruptcy protection on December 19, 2011. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. Seven directors of MF Global Holdings resigned from their posts on Nov. 28, 2011. U.S. regulators are investigating about $633 million missing from MF Global customer accounts, a person briefed on the matter said Nov. 3, according to Bloomberg News. The New York Stock Exchange has removed MFGI securities from listing. Bankruptcy Creditors' Service, Inc., publishes MF GLOBAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by MF Global Holdings and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) MF GLOBAL: Ch. 11 Trustee Proposes Morrison Foerster as Counsel --------------------------------------------------------------- Louis J. Freeh, the Chapter 11 Trustee for the bankruptcy cases of MF Global Holdings Ltd. and its affiliates, seeks the Court's permission to employ Morrison & Foerster LLP as his counsel, nunc pro tunc to November 28, 2011. As the Chapter 11 Trustee's counsel, Morrison & Foerster will: (a) advise the Chapter 11 Trustee with respect to his powers and duties as Trustee and in the continued management and operation of the businesses and properties of the Debtors; (b) attend meetings and negotiating with creditors and parties-in-interest; (c) advise the Chapter 11 Trustee in connection with any sale of assets in these Chapter 11 cases; (d) take all necessary action to protect and preserve the Debtors' estates, including prosecuting actions on behalf of the Chapter 11 Trustee and the Debtors, defending any action commenced against the Chapter 11 Trustee or the Debtors, and representing the Debtors' interests in negotiations concerning all litigation in which the Debtors are involved, including, but not limited to, objections to claims filed against the Debtors; (e) prepare all motions, applications, answers, orders, reports, and papers necessary to the administration of the Debtors' Chapter 11 cases; (f) appear before the Court, any appellate courts, and the U.S. Trustee for Region 2 and protect the interests of the Debtors before those courts and the U.S. Trustee; (g) perform other necessary legal services to the Chapter 11 Trustee in connection with the Debtors' Chapter 11 cases, including (i) analyzing the Debtors' leases and executory contracts and the assumption or assignment thereof, (ii) analyzing the validity of liens against the Debtors, and (iii) advising on corporate, litigation, and other legal matters; and (h) take all steps necessary and appropriate to bring the Debtors' Chapter 11 cases to conclusion. Morrison & Foerster will be paid its professionals' customary hourly rates, less a discount of 10%. The professionals' current hourly rates are: Title Rate per Hour ----- ------------- Partners $695 to $1,125 Of Counsel $550 to $950 Associates $380 to $685 Paraprofessionals $185 to $360 The specific professionals expected to have primary responsibility in this engagement and their hourly rates prior to the 10% discount are: Name/Title Rate per Hour ---------- ------------- Brett H. Miller, Esq. $975 Partner Lorenzo Marinuzzi, Esq. $865 Partner lmarinuzzi@mofo.com Melissa A. Hager, Esq. $735 Of Counsel mhager@mofo.com Vincent J. Novak, Esq. $640 Associate vnovak@mofo.com John A. Pintarelli, Esq. $655 Associate jpintarelli@mofo.com Erica J. Richards, Esq. $595 Associate erichards@mofo.com William M. Hildbold, Esq. $445 Associate whildbold@mofo.com Melissa M. Crespo, Esq. $380 Associate Laura Guido $280 Paraprofessional Morrison Foerster will also be reimbursed for expenses incurred. Brett H. Miller, Esq., a partner at Morrison & Foerster LLP, in New York, relates that his firm represents certain entities in matters unrelated to the Debtors' Chapter 11 cases, a schedule of which is available for free at: http://misc/bankrupt.com/misc/MFGlobal_MorrisonClients.pdf Mr. Miller further notes that Morrison & Foerster separately represents JPMorgan Chase, Bank of America and UBS in connection with matters unrelated to these Chapter 11 cases. In order to avoid any actual or apparent conflict of interest on the part of Morrison & Foerster, the Chapter 11 Trustee, by application filed on the same date as the Application, is seeking to retain Pepper Hamilton as special conflicts counsel to represent the Chapter 11 Trustee, among other things, in all matters concerning those parties. In 2008, the Chapter 11 Trustee retained Morrison & Foerster to assist in his role as the court-appointed examiner in the SemCrude, L.P. et al., Chapter 11 case. Morrison & Foerster's representation of the Chapter 11 Trustee in the SemCrude case. Morrison & Foerster will not represent the Chapter 11 Trustee or any of the Debtors in an adversary proceeding or other litigation against any client of Morrison & Foerster without obtaining appropriate waivers where necessary or appropriate, Mr. Miller says. Moreover, Morrison & Foerster will not represent any client in any matter involving the Chapter 11 Trustee, the Debtors or these Chapter 11 cases while retained as the Chapter 11 Trustee's counsel, he assures the Court. Despite those disclosures, Morrison & Foerster is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About MF Global New York-based MF Global (NYSE: MF) -- http://www.mfglobal.com/ -- is one of the world's leading brokers of commodities and listed derivatives. MF Global provides access to more than 70 exchanges around the world. The firm is also one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11- 15059 and 11-5058) on Oct. 31, 2011, after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. It is easily the largest bankruptcy filing so far this year. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. MFGH's subsidiaries MF Global Capital LLC, MF Global FX Clear LLC and MF Global Market Services, LLC filed for bankruptcy protection on December 19, 2011. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. Seven directors of MF Global Holdings resigned from their posts on Nov. 28, 2011. U.S. regulators are investigating about $633 million missing from MF Global customer accounts, a person briefed on the matter said Nov. 3, according to Bloomberg News. The New York Stock Exchange has removed MFGI securities from listing. Bankruptcy Creditors' Service, Inc., publishes MF GLOBAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by MF Global Holdings and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) MF GLOBAL: Ch. 11 Trustee Proposes Kasowitz as Conflicts Counsel ---------------------------------------------------------------- Louis J. Freeh, the Chapter 11 Trustee for the bankruptcy cases of MF Global Holdings Ltd. and its affiliates, and the Debtors jointly seek the Court's permission to employ Kasowitz, Benson, Torres & Friedman LLP as conflict counsel and special investigative counsel, nunc pro tunc to November 3, 2011 to March 31, 2012. Kasowitz Benson will represent and advise the Chapter 11 Trustee in connection with certain formal and informal investigative matters and the transition of those matters to the Chapter 11 Trustee and his counsel at Freeh Sporkin & Sullivan. Kasowitz Benson will assist the Chapter 11 Trustee to analyze, investigate, defend, cooperate with and respond to certain formal and informal investigation matters that have been commenced or may be commenced against the Debtors. Because of the Debtors' quick and sudden collapse, they have received numerous subpoenas or information requests from various governmental agencies like the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission requiring the preservation, collection and review of voluminous data and documents in the possession, custody or control of the Debtors. Due to the commencement of a SIPA proceeding relating to the Debtors' affiliate, MF Global Inc. and the appointment of a SIPA trustee for that entity, numerous issues have arisen regarding the obligations and responsibilities between and among the entities concerning the ownership, control and preservation of the relevant documents and data as well as the need to respond to information requests and a subpoena from the SIPA Trustee. The Debtors sought the advice and assistance of Kasowitz Benson in connection with the Representative Matters because the Debtors' primary bankruptcy counsel, Skadden, Arps, Slate, Meagher & Flom LLP, was unable to represent the Chapter 11 Debtors in such matters because of actual or potential conflicts of interest. The principal Kasowitz Benson attorneys designated to represent the Debtors and their current standard hourly rates are: Name/Title Rate per Hour ---------- ------------- Marc E. Kasowitz, Esq. $1,100 Partner mkasowitz@kasowitz.com David S. Rosner, Esq. $875 Partner drosner@kasowitz.com Daniel J. Fetterman, Esq. $850 Partner dfetterman@kasowitz.com Aaron H. Marks, Esq. $800 Partner amarks@kasowitz.com David J. Mark, Esq. $800 Of Counsel dmark@kasowitz.com Jeffrey R. Gleit, Esq. $640 Partner jgleit@kasowitz.com Emilie Cooper, Esq. $435 Associate ecooper@kasowitz.com The billing rates of Kasowitz Benson professionals are: Title Rate per Hour ----- ------------- Partners $550 to $1,100 Special Counsel $525 to $800 Associates $250 to $675 Staff Attorneys $235 to $390 Paralegals $135 to $225 The firm will also be reimbursed for expenses incurred. David S. Rosner, Esq., at Kasowitz, Benson, Torres & Friedman LLP, in New York, discloses that his firm has represented, currently represents, and may represent in matters totally unrelated to the Debtors, a schedule of which is available for free at: http://misc/bankrupt.com/misc/MFGlobal_KasowitzClients.pdf To the extent issues may arise that would cause the Debtors or the Chapter 11 Trustee to be adverse to the entities or any other client of Kasowitz Benson so that it would not be appropriate for the firm to represent the Debtors or Chapter 11 Trustee with respect to the matters, the firm will inform the Chapter 11 Trustee. Mr. Rosner assures the Court that Kasowitz Benson has not represented, does not represent, and will not represent any of such foregoing entities in matters directly related to the Debtors or the Chapter 11 cases. For those reasons, Kasowitz Benson is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code, Mr. Rosner maintains. About MF Global New York-based MF Global (NYSE: MF) -- http://www.mfglobal.com/ -- is one of the world's leading brokers of commodities and listed derivatives. MF Global provides access to more than 70 exchanges around the world. The firm is also one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11- 15059 and 11-5058) on Oct. 31, 2011, after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. It is easily the largest bankruptcy filing so far this year. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. MFGH's subsidiaries MF Global Capital LLC, MF Global FX Clear LLC and MF Global Market Services, LLC filed for bankruptcy protection on December 19, 2011. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. Seven directors of MF Global Holdings resigned from their posts on Nov. 28, 2011. U.S. regulators are investigating about $633 million missing from MF Global customer accounts, a person briefed on the matter said Nov. 3, according to Bloomberg News. The New York Stock Exchange has removed MFGI securities from listing. Bankruptcy Creditors' Service, Inc., publishes MF GLOBAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by MF Global Holdings and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) MF GLOBAL: Ch. 11 Trustee Proposes Pepper Hamilton as Tax Counsel ---------------------------------------------------------------- Louis J. Freeh, the Chapter 11 Trustee for the bankruptcy cases of MF Global Holdings Ltd. and its affiliates, seeks the Court's permission to employ Pepper Hamilton LLP, as his special counsel, nunc pro tunc to November 28, 2011. As the Chapter 11 Trustee's special counsel, Pepper Hamilton will render these services relating to: (a) Tax issues including: tax audits and refunds; affiliates (including off-shore captive insurance company); and employee benefit issues related to tax and Employee Retirement Income Security Act matters; and insurance matters affecting the Debtors' estates including off-shore captive insurance company, directors and officers insurance and errors and omissions insurance; (b) WARN Act Litigation matters captioned Green et al. v. MF Global Holdings Ltd., Adv. Case No. 11-0291 (MG) and Thielmann et al. v. MF Global Holdings Ltd. et al., Adv. Case No. 11-2880 (MG) and insurance litigation related to insurance claims, defenses and indemnities; (c) Advice regarding miscellaneous real estate issues involving leases, furniture, fixture and equipment relating to the Debtors' relocation and employment issues affecting the operation of the remaining business of the Debtors' estates; (d) Any matters as to which Morrison & Foerster LLP has a conflict involving JPMorgan Chase, Bank of America or UBS, A.G. and their affiliates; (e) Appearing before the Court and representing the Chapter 11 Trustee's interests with respect to those matters for which Pepper has been engaged; and (f) Performing all other necessary legal services and providing all other necessary legal advice to the Chapter 11 Trustee in connection with those matters for which Pepper Hamilton has been engaged. The principal professionals at Pepper Hamilton who are expected to have primary responsibility in this engagement are: Name/Title Rate per Hour ---------- ------------- Joseph Del Raso, Esq. $850 Partner delrasoj@pepperlaw.com David B. Stratton, Esq. $700 Partner strattond@pepperlaw.com David M. Fournier, Esq. $620 Partner fournierd@pepperlaw.com Joan Arnold, Esq. $760 Partner arnoldj@pepperlaw.com Kevin Johnson, Esq. $575 Partner johnsonkm@pepperlaw.com Charles Leasure, Esq. $615 Of Counsel leasurec@pepperlaw.com Evelyn J. Meltzer, Esq. $405 Of Counsel meltzere@pepperlaw.com John H. Schanne, II, Esq. $310 Associate schannej@pepperlaw.com Christopher Lano $215 Paralegal Pepper Hamilton's representation of the Chapter 11 Trustee may require the active participation of additional professionals whose customary hourly rates are: Title Rate per Hour ----- ------------- Partner and Counsel $380 to $825 Associates $240 to $435 Paraprofessionals $75 to $215 Pepper Hamilton will also be reimbursed for expenses incurred. David B. Stratton, Esq., a partner of Pepper Hamilton and co- chair of the firm's Corporate Restructuring and Bankruptcy Practice Group, in New York, discloses that his firm represented and may represent these entities in matters unrelated to the Debtors' Chapter 11 cases, a schedule of which is available for free at: http://misc/bankrupt.com/misc/MFGlobal_PepperHamiltonClients.pdf In addition, Mr. Stratton discloses: * Attorneys at Pepper Hamilton have advised Olympic Steel, Inc. in connection with certain forward contracts purchased through MF Global UK Limited. MF Global UK is in administration in England and Morrison & Foerster, and not Pepper Hamilton, will be advising the Chapter 11 Trustee with respect to any matters regarding MF Global UK, its administration, and Olympic Steel. At the request of the U.S. Trustee for Region 2, Pepper Hamilton has built an informational screen pursuant to which those attorneys representing Olympic Steel will not represent the Chapter 11 Trustee and will not have access to any files concerning Pepper Hamilton's representation of the Chapter 11 Trustee. * AIG affiliates provide insurance coverage to Pepper Hamilton's clients and in that connection sometimes are the party paying Pepper Hamilton's bills. * Pepper Hamilton represents JP Morgan Chase Bank, N.A. as part of a group of creditors in the Dow Corning's Chapter 11 proceeding pursuant to a written prospective conflict waiver that permits Pepper Hamilton to be directly adverse to JPMC in all other matters. * Pepper Hamilton assisted ePlus Technology Inc. in preparing a reclamation demand against MF Global Inc. but is not continuing to represent ePlus Technology Inc. with respect to that matter. * Pepper Hamilton is able to be adverse to all UBS entities. Despite those disclosures, Mr. Stratton insists that Pepper Hamilton is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. About MF Global New York-based MF Global (NYSE: MF) -- http://www.mfglobal.com/ -- is one of the world's leading brokers of commodities and listed derivatives. MF Global provides access to more than 70 exchanges around the world. The firm is also one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11- 15059 and 11-5058) on Oct. 31, 2011, after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. It is easily the largest bankruptcy filing so far this year. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. MFGH's subsidiaries MF Global Capital LLC, MF Global FX Clear LLC and MF Global Market Services, LLC filed for bankruptcy protection on December 19, 2011. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. Seven directors of MF Global Holdings resigned from their posts on Nov. 28, 2011. U.S. regulators are investigating about $633 million missing from MF Global customer accounts, a person briefed on the matter said Nov. 3, according to Bloomberg News. The New York Stock Exchange has removed MFGI securities from listing. Bankruptcy Creditors' Service, Inc., publishes MF GLOBAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by MF Global Holdings and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) MFJT LLC: Hearing on Case Dismissal Continued Until March 16 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Illinois has continued until March 16, 2012, at 9:30 a.m., the hearing to consider the motion to dismiss MFJT LLC's Chapter 11 case. Lender BACM 2007-3 ALSIP Complex, LLC asked the Court to dismiss or, in the alternative, modify the automatic stay to allow the lender to foreclose on the Debtor's properties. According to the lender, the Debtor, among other things, filed the case in bad faith. The lender is represented by: Timothy W. Brink, Esq. James R. Irving, Esq. Oksana Koltko, Esq. 203 North LaSalle Street, Suite 1900 Chicago, IL 60601 Tel: (312) 368-4000 Fax: (312) 236-7516 E-mail: timothy.brink@dlapiper.com jim.irving@dlapiper.com oksana.koltko@dlapiper.com About MFJT, LLC Alsip, Illinois-based MFJT, LLC -- dba Somerset Park Apartments and Somerset II - is the owner and operator of two separate residential projects in Alsip and Merrinette Park, Illinois, commonly known as Somerset Park Apartments and Somerset II. The Company filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 11-11819) on March 22, 2011. Arthur G. Simon, Esq., David K. Welch, Esq., and Jeffrey C. Dan, Esq., at Crane Heyman Simon Welch & Clar, in Chicago, serve as the Debtor's bankruptcy counsel. The Debtor proposes to employ Tailwind Services, LLC as its financial advisor. The Debtor disclosed $16,137,365 in assets and $17,952,853 in liabilities as of the Chapter 11 filing. MFJT LLC: Plan Outline Hearing Continued until March 16 ------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois has continued until March 16, 2012, at 9:30 a.m., the hearing to consider the confirmation of MFJT LLC's Modified Chapter 11 Plan. Ballots accepting or rejecting the Plan are due March 5. Discovery Cutoff is also set for March 5. Exhibit List due by March 7. Objections, if any, to the Plan are due March 13. The Witness List is due by March 7. The Plan filed on Dec. 19, 2011 is premised upon substantive consolidation of the Debtors for all purposes related to the Plan, including for purposes of voting, confirmation, distribution to creditors, and administration. A copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/MFJT_LLC_ds_1stamended.pdf About MFJT, LLC Alsip, Illinois-based MFJT, LLC -- dba Somerset Park Apartments and Somerset II - is the owner and operator of two separate residential projects in Alsip and Merrinette Park, Illinois, commonly known as Somerset Park Apartments and Somerset II. The Company filed for Chapter 11 bankruptcy protection (Bankr. N.D. Ill. Case No. 11-11819) on March 22, 2011. Arthur G. Simon, Esq., David K. Welch, Esq., and Jeffrey C. Dan, Esq., at Crane Heyman Simon Welch & Clar, in Chicago, serve as the Debtor's bankruptcy counsel. The Debtor proposes to employ Tailwind Services, LLC as its financial advisor. The Debtor disclosed $16,137,365 in assets and $17,952,853 in liabilities as of the Chapter 11 filing. MGM RESORTS: CityCenter Closes $240MM Sr. Secured Notes Offering ---------------------------------------------------------------- CityCenter Holdings, LLC, and CityCenter Finance Corp. have completed their issuance of $240 million in aggregate principal amount of senior secured first lien notes in a private placement. The notes were priced at 104.75% of par and are additional notes constituting a part of the same series as the $900 million in aggregate principal amount of 7.625% senior secured first lien notes due 2016 issued on Jan. 21, 2011. CityCenter will use the net proceeds from the offering, together with cash from its balance sheet, to repay $300 million of the outstanding borrowings under its $375 million senior credit facility. The notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to any U.S. persons absent registration under the Securities Act, or pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The notes were offered only to "qualified institutional buyers" under Rule 144A of the Securities Act or, outside the United States, to persons other than "U.S. persons" in compliance with Regulation S under the Securities Act. About MGM Resorts MGM Resorts International (NYSE: MGM) -- http://www.mgmresorts.com/-- has significant holdings in gaming, hospitality and entertainment, owns and operates 15 properties located in Nevada, Mississippi and Michigan, and has 50% investments in four other properties in Nevada, Illinois and Macau. The Company reported net income of $3.25 billion on $5.55 billion of revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $1.29 billion on $4.58 billion of revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $27.85 billion in total assets, $17.91 billion in total liabilities and $9.94 billion in total stockholders' equity. Bankruptcy Warning Any default under the senior credit facility or the indentures governing the Company's other debt could adversely affect its growth, its financial condition, its results of operations and its ability to make payments on its debt, and could force the Company to seek protection under the bankruptcy laws. * * * As reported by the TCR on Nov. 14, 2011, Standard & Poor's Ratings Services raised its corporate credit rating on MGM Resorts International to 'B-' from 'CCC+'. "The rating upgrade reflects MGM's solid performance thus far in 2011, and our expectation that MGM will continue benefitting from improving performance trends on the Las Vegas Strip, particularly on the lodging side of the business," said Standard & Poor's credit analyst Ben Bubeck. "MGM maintains weak credit measures, including operating lease-adjusted debt to wholly owned EBITDA of over 11x and EBITDA coverage of interest of just 1.0x. Still, we believe recent strong performance trends are reducing refinancing risk in the company's intermediate- term debt maturities, and expect credit measures to continue to gradually improve modestly in 2012." In the Nov. 21, 2011, edition of the TCR, Moody's Investors Service upgraded MGM Resorts International's Corporate Family and Probability of Default ratings to B2, its senior secured rating to Ba2, and its senior unsecured notes to B3. MGM has an SGL-3 Speculative Grade. The B2 rating reflects Moody's view that continued earnings improvement at MGM's 51% owned Macau joint venture increases the likelihood of a dividend distribution that would help improve the company's liquidity profile. The B2 Corporate Family Rating also reflects Moody's view that positive lodging trends in Las Vegas will continue through 2012 and will help improve MGM's leverage and coverage metrics modestly. MID MICHIGAN CRUSHING: Files Schedules of Assets and Liabilities ---------------------------------------------------------------- Mid Michigan Crushing & Recycling LLC filed with the U.S. Bankruptcy Court for the Eastern District of Michigan its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $1,013,435 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $63,340 E. Creditors Holding Unsecured Priority Claims $775,665 F. Creditors Holding Unsecured Non-priority Claims $50,213 ----------- ----------- TOTAL $1,013,435 $952,558 A copy of Mid Michigan Crushing & Recycling LLC's schedules is available for free at: http://bankrupt.com/misc/MID_MICHIGAN_sal.pdf Mid Michigan Crushing & Recycling LLC is headquartered in Fenton, Michigan. It filed for Chapter 11 bankruptcy (Bankr. E.D. Mich. Case No. 11-35834) on Dec. 29, 2011. Judge Daniel S. Opperman presides over the case. Nikayela D. Lockett, Esq., at The Lockett Law Firm, P.C., serves as the Debtor's bankruptcy counsel. MOHEGAN TRIBAL: Amends Employment Pacts with Presidents and CEOs ---------------------------------------------------------------- The Mohegan Tribal Gaming Authority executed amended employment agreements with Mitchell Grossinger Etess, President and Chief Executive Officer of the Authority, and Jeffrey E. Hartmann, President and Chief Executive Officer of Mohegan Sun. These agreements amend and restate the previous employment agreements with each executive. The terms of the agreements commenced as of Jan. 1, 2012, and expire on June 30, 2015, with base annual salaries of $1,361,904 and $1,285,565, respectively, subject to increases to $1,402,762 and $1,324,133, respectively, effective July 1, 2012. The agreements contain automatic renewals for an additional three year term unless either party provides notice to the other on or before one year prior to the end of their agreement's stated term of an intention to terminate at the stated termination date. Each employment agreement provides that if the employee is terminated for cause or if the employee voluntarily terminates his employment, then the employee will not be entitled to any further compensation. About Mohegan Tribal Gaming Authority Mohegan Tribal Gaming Authority -- http://www.mtga.com/-- is an instrumentality of the Mohegan Tribe of Indians of Connecticut, or the Tribe, a federally-recognized Indian tribe with an approximately 507-acre reservation situated in Southeastern Connecticut, adjacent to Uncasville, Connecticut. The Authority has been granted the exclusive authority to conduct and regulate gaming activities on the existing reservation of the Tribe, including the operation of Mohegan Sun, a gaming and entertainment complex located on a 185-acre site on the Tribe's reservation. Through its subsidiary, Downs Racing, L.P., the Authority also owns and operates Mohegan Sun at Pocono Downs, a gaming and entertainment facility located on a 400-acre site in Plains Township, Pennsylvania, and several off-track wagering facilities located elsewhere in Pennsylvania. The Authority's balance sheet at Sept. 30, 2011, showed $2.2 billion in total assets, $2.0 billion in total liabilities and $198.7 million total capital. PricewaterhouseCoopers LLP, in Hartford, Connecticut, expressed substantial doubt about the Authority's ability to continue as a going concern. The independent auditors noted that of the Authority's total debt of $1.6 billion as of Sept. 30, 2011, $811.1 million matures within the next twelve months, including $535.0 million outstanding under the Authority's Bank Credit Facility which matures on March 9, 2012, and the Authority's $250.0 million 2002 8% Senior Subordinated Notes which mature on April 1, 2012. In addition, a substantial amount of the Authority's other outstanding indebtedness matures over the following three fiscal years. MOHEGAN TRIBAL: Early Tender Offer Period Expires ------------------------------------------------- The Mohegan Tribal Gaming Authority has extended the early tender period in its private exchange offers and consent solicitations until 5:00 p.m., New York City time, on Feb. 22, 2012, the expiration date for the exchange offers and consent solicitations. As previously announced, the Authority is offering to exchange any and all of its outstanding notes held by eligible holders for new notes in a private exchange offer which includes a solicitation of consents to certain amendments to the old notes and the indentures governing the old notes. The early tender date was previously scheduled for 5:00 p.m., New York City time, on Feb. 17, 2012. As of the previous early tender date, old notes had been tendered into the exchange offers in amounts sufficient to satisfy the minimum tender condition with respect to the old second lien notes and the old 2014 notes and old 2015 notes, in the aggregate, but not with respect to the old 2012 notes and old 2013 notes, in the aggregate. As of the previous early tender date, approximately 99.9% of the old second lien notes, approximately 83.6% of the old 2012 and old 2013 notes, in the aggregate, and approximately 91.8% of the old 2014 and old 2015 notes, in the aggregate, had been tendered into the exchange offers. The exchange offers were launched on Jan. 24, 2012, and all other terms of the exchange offers remain unchanged from the terms announced at launch. Withdrawal rights for old notes and the related consents tendered into the exchange offers expired at 5:00 p.m., New York City time, on Feb. 6, 2012, as scheduled, and there will be no withdrawal rights for the remainder of the exchange offers. A full-text copy of the press release is available for free at: http://is.gd/QEMCg8 About Mohegan Tribal Gaming Authority Mohegan Tribal Gaming Authority -- http://www.mtga.com/-- is an instrumentality of the Mohegan Tribe of Indians of Connecticut, or the Tribe, a federally-recognized Indian tribe with an approximately 507-acre reservation situated in Southeastern Connecticut, adjacent to Uncasville, Connecticut. The Authority has been granted the exclusive authority to conduct and regulate gaming activities on the existing reservation of the Tribe, including the operation of Mohegan Sun, a gaming and entertainment complex located on a 185-acre site on the Tribe's reservation. Through its subsidiary, Downs Racing, L.P., the Authority also owns and operates Mohegan Sun at Pocono Downs, a gaming and entertainment facility located on a 400-acre site in Plains Township, Pennsylvania, and several off-track wagering facilities located elsewhere in Pennsylvania. The Authority's balance sheet at Sept. 30, 2011, showed $2.2 billion in total assets, $2.0 billion in total liabilities and $198.7 million total capital. PricewaterhouseCoopers LLP, in Hartford, Connecticut, expressed substantial doubt about the Authority's ability to continue as a going concern. The independent auditors noted that of the Authority's total debt of $1.6 billion as of Sept. 30, 2011, $811.1 million matures within the next twelve months, including $535.0 million outstanding under the Authority's Bank Credit Facility which matures on March 9, 2012, and the Authority's $250.0 million 2002 8% Senior Subordinated Notes which mature on April 1, 2012. In addition, a substantial amount of the Authority's other outstanding indebtedness matures over the following three fiscal years. MPG OFFICE: Inks Letter Agreement with Christopher Norton --------------------------------------------------------- MPG Office Trust, Inc., and MPG Office, L.P., entered into an Employment Agreement with Christopher Norton, the Company's Senior Vice President, Transactions, which supersedes and replaces Mr. Norton's prior employment letter agreement with the Company, dated March 1, 2011. Mr. Norton's Employment Agreement has a term commencing on Feb. 14, 2012, and ending on Dec. 31, 2014, subject to automatic renewals for successive one-year periods unless either party provides notice of its intention not to renew the Employment Agreement not less than 60 days prior to the expiration of the then-current term. The Employment Agreement provides for an annual base salary of $275,000. Mr. Norton is eligible for annual cash performance bonuses under the Company's incentive bonus plan. The amount of his annual bonus, if any, will be at the discretion of the Compensation Committee of the Company's board of directors. The Employment Agreement provides that if Mr. Norton's employment is terminated by the Company without cause, and subject to his execution and non-revocation of a general release of claims, he will receive the following severance payments and benefits: * A lump-sum cash payment equal to the aggregate amount of (i) any unpaid prior year annual bonus, (ii) 100% of the sum of his annual base salary in effect on the date of termination plus the annual bonus earned by him for the most recently completed fiscal year of the Company preceding the termination, and (iii) a prorated annual bonus for the year in which the termination occurs; and * Certain health insurance benefits at the Company's expense for up to 18 months. Mr. Norton's Employment Agreement contains confidentiality provisions that apply indefinitely and non-solicitation provisions that apply during the term of his Employment Agreement and for a one-year period thereafter. Effective as of Feb. 14, 2012, the Company and Jonathan Abrams, the Company's Executive Vice President, General Counsel and Secretary, entered into an amendment to Mr. Abrams' amended and restated employment letter agreement, dated Dec. 31, 2008. The effect of the Amendment was to: * Reflect the change in Mr. Abrams' title to Executive Vice President from Senior Vice President, which occurred previously on Dec. 19, 2011; * Provide that Mr. Abrams' employment with the Company will be for a fixed term, ending on Dec. 31, 2014, subject to automatic renewals for successive one-year periods unless either party provides notice of its intention not to renew the employment letter not less than 60 days prior to the expiration of the then-current term. Prior to the Amendment, Mr. Abrams' amended and restated employment letter agreement provided for at-will employment, and was not for a fixed period; * Reflect Mr. Abrams' current annual base salary of $300,000, which was previously established by the Company as of July 1, 2009; and * Provide that if Mr. Abrams' employment is terminated by the Company without cause, and subject to his execution and non- revocation of a general release of claims, he will receive the following severance payments and benefits: (a) A lump-sum cash payment equal to the aggregate amount of (i) any unpaid prior year annual bonus, (ii) 100% of the sum of his annual base salary in effect on the date of termination plus the annual bonus earned by him for the most recently completed fiscal year of the Company preceding the termination, and (iii) a prorated annual bonus for the year in which the termination occurs; and (b) certain health insurance benefits at the Company's expense for up to 18 months. Prior to the Amendment, Mr. Abrams' amended and restated employment letter agreement provided for severance in the form of a lump-sum cash payment equal to 100% of the sum of his then- current annual base salary plus his then-current target bonus. The terms of Mr. Abrams' amended and restated employment letter agreement otherwise remain unchanged. About MPG Office Trust MPG Office Trust, Inc., fka Maguire Properties Inc. -- http://www.mpgoffice.com/-- is the largest owner and operator of Class A office properties in the Los Angeles central business district and is primarily focused on owning and operating high- quality office properties in the Southern California market. MPG Office Trust is a full-service real estate company with substantial in-house expertise and resources in property management, marketing, leasing, acquisitions, development and financing. The Company has been focused on reducing debt, eliminating repayment and debt service guarantees, extending debt maturities and disposing of properties with negative cash flow. The first phase of the Company's restructuring efforts is substantially complete and resulted in the resolution of 18 assets, relieving the Company of approximately $2.0 billion of debt obligations and potential guaranties of approximately $150 million. The Company reported a net loss of $197.94 million on $406.89 million of total revenue for the year ended Dec. 31 2010, compared with a net loss of $869.72 million on $423.84 million of total revenue during the prior year. The Company also reported net income of $129.05 million on $249.64 million of total revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $45.79 million on $258.53 million of total revenue for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $2.30 billion in total assets, $3.20 billion in total liabilities and a $903.10 million total deficit. MT. VERMONT: Auction for Baltimore City Property Today ------------------------------------------------------ Judge David E. Rice of the U.S. Bankruptcy Court for the District of Maryland rescheduled to Feb. 23, 2012, the auction of 27 parcels of real property located in Baltimore City owned by Mt. Vernon Properties, LLC. The Auction will be held at 11:00 a.m. at the offices of Alex Cooper Auctioneers, Inc., 908 York Road, Townson, Maryland 21204. The order came after Carrollton Bank, City National Bank, Fannie Mae, First Mariner Bank and Colombo Bank, and Mt. Vernon submitted with the Court a stipulation and consent order which settles the parties dispute. The Debtor previously obtained Court permission to sell the Property on Dec. 7, 2011, and scheduled Jan. 23, 2012, as the auction date. As previously reported by the TCR on Jan. 30, 2012, Mt. Vernon asked the Court to dismiss its Chapter 11 case asserting that moving forward with the sale will leave no funds available for distribution to unsecured creditors. On Jan. 9, 2012, Fannie Mae asked the Court to strike the Debtor's Sale Motion withdrawal. The Court will conduct a sale hearing for approval of the High Bids, whether cash bids or credit bids, on Feb. 27, 2012, at 3:00 p.m. About Mt. Vernon Properties Mt. Vernon Properties, LLC, based in Baltimore, Maryland, is the owner of many parcels of real property located in Baltimore City that the Debtor operates as multi-family rental properties. The Company filed for Chapter 11 bankruptcy (Bankr. D. Md. Case No. 11-24801) on July 18, 2011. Judge David E. Rice presides over the case. Aryeh E. Stein, Esq. -- astein@meridianlawfirm.com -- at Meridian Law LLC, in Baltimore, serves as bankruptcy counsel. The Debtor disclosed $10,237,448 in assets and $15,064,059 in liabilities as of the Chapter 11 filing. The petition was signed by Ronald Persaud, managing member of Mt. Vernon Properties II LLC, the Debtor's sole member. MW GROUP: Can Use BOA Cash Collateral on a Final Basis ------------------------------------------------------ Judge Laura T. Beyer of the U.S. Bankruptcy Court for the Western District of North Carolina has authorized MW Group, LLC, on a final basis, to use the cash collateral of Bank of America, N.A., as successor-in-interest to LaSalle Bank National Association, pursuant to the terms of the budget. In addition to the existing rights and interests of BOA in the Cash Collateral and for the purpose of attempting to provide adequate protection for the interests of BOA, BOA will have a continuing lien and security interest in all postpetition assets of the Debtor, to the same extent, type and priority as BOA has in the Pre-Petition Collateral. In addition to the Post-Petition Security Interests, BOA is granted a super-priority administrative claim under Sections 503(b)(1), 507(a), and 507(b) of the Bankruptcy Code. As adequate protection, the Debtor agrees to pay BOA principal and interest at the non-default rate of interest as set forth in the Budget. A copy of the cash collateral order is available for free at: http://bankrupt.com/misc/MWGROUP_cashcoll_finalorder.pdf Prior to the Petition Date, the Debtor and BOA entered into, among other things, these loan and collateral documents: (a) Loan Agreement dated as of June 1, 2003; (b) a Note, dated as of June 1, 2003, in the principal amount of $6.25 million; (c) a Deed of Trust covering its apartments known as Weyland and Weyland II, located in Charlotte, Mecklenburg County, North Carolina, and securing the Note dated as of June 1, 2003; (d) an Assignment of Rents and Leases further securing the Note as of June 1, 2003; and (e) Assignment of Plans, Permits and Contracts dated as of June 1, 2003, from the Debtor to LaSalle; The Debtor defaulted under the Note and Deed of Trust by failing to pay the entire outstanding balance due under the Note upon maturity of the Note. As of the Petition Date, BOA contends the principal and interest amount due from Debtor is $5.64 million, plus additional fees, costs, and expenses. On March 3, 2011, BOA instituted a foreclosure action in the North Carolina Superior Court, Mecklenburg County, Case No. 2011-SP- 2031. The foreclosure sale subsequently was held on Oct. 14, 2011, at which time, BOA bid in the full amount of its debt. The Debtor sought authorization to use the Cash Collateral in order to preserve and maintain the Property. The Debtor asserted that the proposed use of Cash Collateral is necessary for the continued operation of its business. About MW Group Charlotte, N. Car.-based MW Group, LLC, filed for Chapter 11 bankruptcy (Bankr. W.D.N.C. Case No. 11-32674) on Oct. 21, 2011. The Debtor scheduled assets of $10.32 million and liabilities of $8.42 million. Donald R. James signed the petition as manager. The Debtor's assets consist of 36.5 acres of vacant land, 48 condo units for rent, and 200 apartments known as Weyland and Weyland II, located in Charlotte, Mecklenburg County, North Carolina. The Debtor is represented by Christine L. Myatt, Esq., at Nexsen Pruet, PLLC, in Greensboro, North Carolina. No official committee of unsecured creditors has been appointed in the case. NATIVE WHOLESALE: Violi Firm OK'd on Regulatory Compliance Matters ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Western District of New York authorized Native Wholesale Supply Company to employ the law offices of Leonard Violi, LLC, as its special counsel. As reported in the U.S. Bankruptcy Court for the Troubled Company Reporter on Nov. 29, 2011, as special counsel, the Violi Firm will: (a) provide all necessary information to general counsel for the Debtor; (b) assist, if necessary, in negotiating and preparing on behalf of the Debtor of a plan of reorganization and all related documents; (c) assist general bankruptcy counsel, if necessary, as needed, in connection with the Chapter 11 case; and (d) perform legal services for the Debtor unrelated to the bankruptcy, such as ongoing regulatory compliance matters. The Debtor will pay Violi Firm to render professional services as well as with respect to all other matters it has traditionally worked on for a flat monthly fee of $10,000. Leonard Violi, Esq., assures the Court that his firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code, as modified by Section 1107(b). About Native Wholesale Native Wholesale Supply Company is engaged in the business of importing cigarettes and other tobacco products from Canada and selling them within the United States. It purchases the products from Grand River Enterprises Six Nations, Ltd., a Canadian corporation and the Debtor's only secured creditor. Native is an entity organized under the Sac and Fox Nation and has its principal place of business at 10955 Logan Road in Perrysburg, New York. Native filed for Chapter 11 bankruptcy (Bankr. W.D.N.Y. Case No. 11-14009) on Nov. 21, 2011. The Chapter 11 filing was triggered to resolve an ongoing dispute with the United States government regarding up to $43 million in assessments made by the government against the Debtor pursuant to the Fair and Equitable Tobacco Reform Act of 2004 and the Tobacco Transition Payment Program and to restructure the terms of payment of any obligation determined to be owing by the Debtor to the U.S. under the Disputed Assessment. The issues pertaining to the Disputed Assessment resulted in two lawsuits, subsequently consolidated, now pending in the Federal District Court. Robert J. Feldman, Esq., and Janet G. Burhyte, Esq., at Gross, Shuman, Brizdle & Gilfillan, P.C., in Buffalo, N.Y., represent the Debtor as counseil The Company disclosed $30,022,315 in assets and $70,590,564 in liabilities as of the Chapter 11 filing. NATIVE WHOLESALE: Taps Eberle Berlin to Handle Idaho Actions ------------------------------------------------------------ Native Wholesale Supply Company asks the U.S. Bankruptcy Court for the Western District of New York for permission to employ Eberle, Berlin, Kading, Turnbow & McKlveen, Chartered as special counsel. The Eberle Firm represents the Debtor in two actions pending in the State of Idaho. The Eberle Firm has also been counsel to the Debtor on all matters involving the Idaho Actions since their initiation in 2008. The Eberle Firm will: -- be the Debtor's special counsel with respect to all mattes pertaining to the Idaho Actions; and -- assist the general bankruptcy counsel as needed. The services of the eberle Firm under a general retainer are necessary to enable the ebtor to execute faithfully its duties as debtor-in-possession. To the best of the Debtor's knowledge, the partners and associates of the Eberle Firm do not have any connection with the debtor, its creditors, or any other party-in-interest, or its respective attorneys. About Native Wholesale Native Wholesale Supply Company is engaged in the business of importing cigarettes and other tobacco products from Canada and selling them within the United States. It purchases the products from Grand River Enterprises Six Nations, Ltd., a Canadian corporation and the Debtor's only secured creditor. Native is an entity organized under the Sac and Fox Nation and has its principal place of business at 10955 Logan Road in Perrysburg, New York. Native filed for Chapter 11 bankruptcy (Bankr. W.D.N.Y. Case No. 11-14009) on Nov. 21, 2011. The Chapter 11 filing was triggered to resolve an ongoing dispute with the United States government regarding up to $43 million in assessments made by the government against the Debtor pursuant to the Fair and Equitable Tobacco Reform Act of 2004 and the Tobacco Transition Payment Program and to restructure the terms of payment of any obligation determined to be owing by the Debtor to the U.S. under the Disputed Assessment. The issues pertaining to the Disputed Assessment resulted in two lawsuits, subsequently consolidated, now pending in the Federal District Court. Robert J. Feldman, Esq., and Janet G. Burhyte, Esq., at Gross, Shuman, Brizdle & Gilfillan, P.C., in Buffalo, N.Y., represent the Debtor as counsel. The Company disclosed $30,022,315 in assets and $70,590,564 in liabilities as of the Chapter 11 filing. No trustee, examiner or creditors' committee has been appointed in the case. NAVISTAR INTERNATIONAL: Stockholders OK Board Declassification -------------------------------------------------------------- Navistar International Corporation held its annual meeting of stockholders on Feb. 21, 2012. The Company's stockholders approved an amendment to the Company's Restated Certificate of Incorporation to declassify the Board of Directors. David D. Harrison, Steven J. Klinger and Michael N. Hammes were elected to the Board to serve a one-year term expiring at the 2013 Annual Meeting of the Stockholders and until their successors are duly elected and qualified. The Company's stockholders approved the ratification of the selection of KPMG LLP as the Company's independent registered public accounting firm for the fiscal year ending Oct. 31, 2012, and approved the advisory vote on executive compensation. The remaining directors who did not stand for election at the Annual Meeting and whose terms of office as directors continued after that meeting are Eugenio Clariond, Diane H. Gulyas, Stanley A. McChrystal, James H. Keyes, John D. Correnti, Daniel C. Ustian and Dennis D. Williams. About Navistar International Navistar International Corporation (NYSE: NAV) -- http://www.Navistar.com/-- is a holding company whose subsidiaries and affiliates subsidiaries produce International(R) brand commercial and military trucks, MaxxForce(R) brand diesel engines, IC Bus(TM) brand school and commercial buses, Monaco RV brands of recreational vehicles, and Workhorse(R) brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company also provides truck and diesel engine parts and service. Another affiliate offers financing services. The Company's balance sheet as of Oct. 31, 2011, showed $12.29 billion in total assets, $12.26 billion in total liabilities, $5 million in redeemable equity securities, and $23 million in total stockholders' equity. * * * Navistar has a 'BB-/Stable/--' corporate credit rating from Standard & Poor's and a 'B1' Corporate Family Rating and Probability of Default Rating from Moody's Investors Service. Moody's said in October 2010 that Navistar's B1 rating could improve if the North American truck market remains on track for a sustained recovery into 2011, and Navistar's operational initiatives to moderate its vulnerability to the truck cycle show evidence of taking hold. NEBRASKA BOOK: Posts $18.7 Million Net Loss in Fiscal 3rd Quarter ----------------------------------------------------------------- NBC Acquisition filed its quarterly report on Form 10-Q, reporting a net loss of $18.7 million on $76.4 million of revenues for the three months ended Dec. 31, 2011, compared with a net loss of $16.3 million on $69.2 million of revenues for the three months ended Dec. 31, 2010. Costs directly attributable to the Chapter 11 proceedings were $5.3 million for the quarter ended Dec. 31, 2011, and primarily are advisor fees related to the Chapter 11 proceedings. Reorganization items include $1.1 million associated with modifications to the DIP Credit Agreement. Interest expense, net for the quarter ended Dec. 31, 2011, decreased $4.2 million to $8.6 million from $12.8 million for the quarter ended Dec. 31, 2010, primarily due to a $5.9 million decrease in interest on the Pre-Petition Senior Subordinated Notes and Pre-Petition Senior Discount Notes as a result of ceasing to pay and record interest at the Petition Date. This decrease was partially offset by a $2.6 million increase in interest for the DIP Term Loan Facility, which was issued subsequent to the Petition Date. Income tax benefit for the quarter ended Dec. 31, 2011, was $3.5 million compared to $9.8 million for the quarter ended Dec. 31, 2010. For the nine months ended Dec. 31, 2011, the Company has reported a net loss of $134.1 million on $382.2 million of revenues, compared with a net loss of $12.5 million on $414.4 million of revenues for the nine months ended Dec. 31, 2010. The Company's balance sheet at Dec. 31, 2011, showed $517.8 million in total assets, $691.2 million in total liabilities, $14.1 million of Series A redeemable preferred stock, and a stockholders' deficit of $187.5 million. A copy of the Form 10-Q is available for free at: http://is.gd/P5zQ9g About Nebraska Book Lincoln, Nebraska-based Nebraska Book Company, Inc., is one of the leading providers of new and used textbooks for college students in the United States. Nebraska Book and seven affiliates filed separate Chapter 11 petitions (Bankr. D. Del. Case Nos. 11-12002 to 11-12009) on June 27, 2011. Hon. Peter J. Walsh presides over the case. Lawyers at Kirkland & Ellis LLP and Pachulski Stang Ziehl & Jones LLP, serve as the Debtors' bankruptcy counsel. The Debtors; restructuring advisors are AlixPartners LLC; the investment bankers are Rothschild, Inc.; the auditors are Deloitte & Touche LLP; and the claims agent is Kurtzman Carson Consultants LLC. As of the Petition Date, the Debtors had consolidated assets of $657,215,757 and debts of $563,973,688. JPMorgan Chase Bank N.A., as administrative agent for the DIP lenders, is represented by lawyers at Richards, Layton & Finger, P.A., and Simpson Thacher & Bartlett LLP. J.P. Morgan Investment Management Inc., the DIP arranger, is represented by lawyers at Bayard, P.A., and Willkie Farr & Gallagher LLP. An ad hoc committee of holders of more than 50% of the Debtors' Second Lien Notes is represented by lawyers at Brown Rudnick. An ad hoc committee of holders of the Debtors' 8.625% unsecured notes are represented by Milbank, Tweed, Hadley & McCloy LLP. The Official Committee of Unsecured Creditors selected Lowenstein Sandler LLP and Stevens & Lee, P.C., as lawyers and Mesirow Financial Inc. as financial advisers. Nebraska Book has been unable to confirm a pre-packaged Chapter 11 plan that would have swapped some of the existing debt for new debt, cash and the new stock, due to an inability to secure $250 million in exit financing. NEDAK ETHANOL: TNDK Holds 34.2% of Common Membership Units ---------------------------------------------------------- In a Schedule 13D filing with the U.S. Securities and Exchange Commission, TNDK, LLC, disclosed that, as of Dec. 31, 2011, it beneficially owns 6,000 Common Membership Units of NEDAK Ethanol, LLC, representing 34.2% of the units outstanding. On Dec. 30, 2011, the Company entered into a Letter Agreement with TNDK pursuant to which TNDK agreed to invest $5,000,000 in the Company as part of the Company's private offering of up to 1,500 Class B Preferred Membership Units at $10,000 per unit. The investment by the Reporting Person was subject to certain conditions which were satisfied by the Company on Dec. 31, 2011. In connection with the closing of the Class B Offering, the Company issued to the Reporting Person 500 Class B Units at a price of $10,000 per unit for an aggregate purchase price of $5,000,000. The purchase price was financed with borrowings from Tenaska Energy, Inc., and Tenaska Energy Holdings, LLC, affiliates of the Reporting Person. Pursuant to the Company's Fifth Amended and Restated Operating Agreement, the Class B Units issued to the Reporting Person as part of the Class B Offering are convertible into Common Units at a conversion rate of 12 Common Units for each one Class B Unit. Pursuant to the terms of the Company's Operating Agreement, and as a result of the acquisition of the Class B Units, the Reporting Person has the right to appoint two persons to serve as members of the Company's Board of Directors. A full-text copy of the Schedule is available for free at: http://is.gd/pGFEne About NEDAK Ethanol Atkinson, Neb.-based NEDAK Ethanol, LLC -- http://www.nedakethanol.com/-- operates a 44 million gallon per year ethanol plant in Atkinson, Nebraska, and produces and sells fuel ethanol and distillers grains, a co-product of the ethanol production process. Sales of ethanol and distillers grains began in January 2009. The Company reported a net loss of $2.08 million on $94.77 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $9.23 million on $67.53 million of revenue during the prior year. The Company reported a net loss of $3.56 million on $114.10 million of revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $3.61 million on $66.82 million of revenue for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $80.94 million in total assets, $50.97 million in total liabilities, all current, and $29.96 million in total members' equity. As reported by the TCR on April 7, 2011, McGladrey & Pullen, LLP, in Sioux Falls, South Dakota, expressed substantial doubt about the Company's ability to continue as a going concern following the Company's 2010 results. The independent auditors noted that there is uncertainty as to the Company's ability to cure credit agreement defaults and, therefore, to secure additional funds needed to fund ongoing operations. Bankruptcy Warning The Company entered into the following agreements with AgCountry Farm Credit Services, FLCA, regarding the Company's senior secured credit facility for the provision of construction and permanent debt financing for our ethanol plant: a Master Credit Agreement dated Feb. 14, 2007, and several supplements including the Seventh Supplement and Forbearance agreement to the Master Credit Agreement effective Feb. 1, 2011. As of Sept. 30, 2011, the Company had $34,000,008 outstanding under the Facility. The Company is actively negotiating with the Lender to convert the construction financing to operating lines and to modify the loan covenants to reflect current industry economics. These negotiations have taken a considerable amount of time due to the number of lenders involved, the Company's overall liquidity and the interests of a diverse group of stakeholders. The Company cannot predict whether the Lender will agree to modify any of those covenants, but the Company does expect a resolution soon. To the extent the Company is unable to modify those covenants, it may not be possible to meet them unless the commodities markets the Company operates in move in favorable directions. Until the Company is able to comply with the covenants under the Loan Agreements, the Lender may take a variety of actions, including immediately accelerating the repayment of all outstanding debt under the Loan Agreements. Such acceleration could entitle the Lender to liquidate all of the Company's assets, and would likely lead to the Company's bankruptcy, reorganization or winding up of its affairs. NEUROLOGIX INC: Hires GRP Inc. as Financial Advisor --------------------------------------------------- Neurologix, Inc., entered into a limited engagement agreement with Global Resource Partners, Inc., with services commencing retroactively from Feb. 10, 2012. Under the terms of the Agreement, GRP Inc. will provide to the Company, on a non-exclusive basis, consulting and financial advisory services on a month-to-month basis, terminable upon five days written notice. GRP, Inc., will, among other things, provide consulting services similar in nature and scope to that of the Company's Acting Chief Financial Officer, assist the Company in preparing financial models and other similar confidential information schedules, and assist the Company with its capital sourcing objectives. GRP, Inc., will receive a reduced fee of $10,000 per month. GRP, Inc., and the Company agree to indemnify and hold each other harmless from and against any and all losses, claims, damages or liabilities to which either party may become subject to under any statute or the common law or otherwise arising out of the subject matter of the Agreement, unless those losses result from such party's recklessness or gross negligence. About Neurologix, Inc. Fort Lee, N.J.-based Neurologix, Inc. (OTC Bulletin Board: NRGX) -- http://www.neurologix.net/-- is a clinical-stage biotechnology company dedicated to the discovery, development, and commercialization of gene transfer therapies for serious disorders of the brain and the central nervous system. The Company's current programs address such conditions as Parkinson's disease, epilepsy, depression and Huntington's disease, all of which are large markets not adequately served by current therapeutic options. The Company reported a net loss of $10.16 million on $0 of revenue for the year ended Dec. 31, 2010, compared with a net loss of $13.46 million on $0 of revenue during the prior year. The Company's balance sheet at June 30, 2011, showed $4.96 million in total assets, $13.62 million in total liabilities, and a $8.66 million total stockholders' deficit. BDO USA, LLP, in New York, raised substantial doubt about the Company's ability to continue as a going concern. BDO noted that the Company has suffered recurring losses from operations, expects to incur future losses for the foreseeable future and has deficiencies in working capital and capital. NEW ENGLAND BUILDING: Hearing Today on Cash Collateral Use ---------------------------------------------------------- New England Building Materials, LLC, will return to the Bankruptcy Court today, Feb. 23, for another hearing on its request to use cash collateral. On Feb. 17, the Debtor obtained a preliminary interim order authorizing it to use cash collateral and obtain credit. Pursuant to that order, the Debtor is authorized to expend up to a total of $300,000 to pay necessary expenses in accordance with a budget. None of the funds, however, will be expended to fund professional fees or prepetition insurance premiums. The Feb. 17 Order permits the Debtor to borrow from TD Bank N.A. up to the maximum amount of $300,000. Secured creditors TD Bank, Richard I. Thompson, Timothy O. White Revocable Trust, Emery G. Olcott, Richard A. Molyneux Revocable Trust and Seaboard International Forest Products LLC are the only creditors that claim a lien or other interest in the Debtor?s cash collateral. In order for the Debtor to continue in operation, and maximize the value of its cash collateral and of its business for the benefit of its creditors, including the Secured Creditors, the Debtor said it needs to use cash to meet payroll and generally to meet ordinary and necessary business expenses. The Debtor said it will suffer immediate and irreparable injury if it is not immediately permitted to use cash collateral and borrow additional funds. The Debtor will provide adequate protection to the Secured Creditors on account of its use of cash collateral by granting the Secured Creditors replacement liens in assets of the Debtor acquired after the Filing Date through to Feb. 23, 2012, such replacement liens to be in amounts equal to the amount of cash collateral actually used by the Debtor and to the extent of the liens of Secured Creditors in the cash collateral of the Debtor as of the Filing Date. Prior to the Petition Date, the Debtor entered into a loan arrangement with TD Bank, and the Lender provided pre-petition financial accommodations to the Debtor as evidenced by a Loan and Security Agreement dated May 27, 2010, as amended. Pursuant to the Line of Credit, the Debtor granted Lender a security interest in certain business assets. The maximum amount funds available to the Debtor under the Line of Credit is the lesser of (x) $7,500,000, and (y) 75% of eligible accounts receivable, plus and up to 60% of eligible inventory, less reserves and amounts posted in letters of credit. As of the bankruptcy filing date, the principal balance due and owing by the Debtor under the Line of Credit was $4,446,351. In its motion, the Debtor requested authority to use cash collateral through to and including May 31, 2012. As of the Filing Date, the total value of the Debtor?s cash collateral is $7,117,581. As of the Filing Date, the balance outstanding on the Line of Credit represents roughly 62% of the value of the Debtor?s cash collateral. The Debtor is projecting that through May 31, 2012, it will have liquidated unprofitable operations, and the assets that served these operations; it will have satisfied a substantial amount of the secured claims of TD Bank, and it will have restructured its business into a viable business entity that will be in a position to propose, fund and consummate a plan of reorganization for the benefit of all creditors of the estate. Through this process, the Debtor is projecting that the outstanding balance on the Line of Credit as of May 31, 2012, will be roughly 48% of the value of cash collateral, a substantial reduction from the 62% level that exists on the Filing Date. TD Banknorth may be reached through: Joshua R. Dow, Esq. PEARCE & DOW, LLC Two Monument Square, 9th Floor P.O. Box 108 Portland, ME 04112-0108 E-mail: jdow@piercedow.com About New England Building Materials Based in Sanford, Maine, New England Building Materials LLC, fka Lavalley Lumber Company LLC and Poole Brothers, filed for Chapter 11 bankruptcy (Bankr. D. Maine Case No. 12-20109) on Feb. 14, 2012. New England Building Materials is engaged in the business of manufacturing and selling, at wholesale, Eastern White Pine lumber and related products. It was also engaged in the business of selling lumber products at retail, through outlets in Maine and Massachusetts, although, as of the bankruptcy filing date, it has made the determination to cease retail activities. Chief Judge James B. Haines Jr. presides over the case. Lawyers at Marcus, Clegg & Mistretta, P.A., serve as the Debtor's counsel. Windsor Associates LLC serves as financial advisors. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Richard I. Thompson, chief financial officer. NEW ENGLAND BUILDING: Sec. 341 Creditors Meeting on March 20 ------------------------------------------------------------ The U.S. Trustee in Portland, Maine, will convene a meeting of creditors pursuant to 11 U.S.C. Sec. 341(a) in the Chapter 11 case of New England Building Materials LLC, on March 20, 2012, at 10:00 a.m. at U.S. Trustee's Room 302, Portland. Governmental units have 180 days from date of filing of the case or the date of conversion to file a proof of claim. Proofs of claim for all other creditors are due by June 18, 2012. About New England Building Materials Based in Sanford, Maine, New England Building Materials LLC, fka Lavalley Lumber Company LLC and Poole Brothers, filed for Chapter 11 bankruptcy (Bankr. D. Maine Case No. 12-20109) on Feb. 14, 2012. New England Building Materials is engaged in the business of manufacturing and selling, at wholesale, Eastern White Pine lumber and related products. It was also engaged in the business of selling lumber products at retail, through outlets in Maine and Massachusetts, although, as of the bankruptcy filing date, it has made the determination to cease retail activities. Chief Judge James B. Haines Jr. presides over the case. Lawyers at Marcus, Clegg & Mistretta, P.A., serve as the Debtor's counsel. Windsor Associates LLC serves as financial advisors. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Richard I. Thompson, chief financial officer. NEW ENGLAND BUILDING: Taps Pierce Atwood as Special Counsel ----------------------------------------------------------- New England Building Materials, LLC, said it requires legal representation as to certain, discrete legal matters. More specifically, the Debtor requires counsel regarding the documentation and closing of certain contemplated post-petition assets sales that the Debtor anticipates will be necessary in order to successfully reorganize. In this regard, the Debtor seeks Bankruptcy Court permission to hire Pierce Atwood LLP as special legal counsel. Pierce Atwood has historically represented the Debtor with relation to all its corporate legal work in general and its various purchases and sales of assets in particular. The hourly rate charged by the Pierce Atwood attorneys will vary between $250 per hour and $420 per hour. If a paralegal is utilized, he or she will bill at $140 per hour. The hourly rates of attorneys at Pierce Atwood who will work on this engagement are: a. Attorney Coggeshall: $420/hour; b. Michael Anderson: $250/hour; and c. Jana Magnuson: $260/hour. Bruce A. Coggeshall, Esq., of counsel at Pierce Atwood -- bcoggeshall@pierceatwood.com -- attests that his firm does not hold or represent an interest adverse to the estate. Mr. Coggeshall said Pierce Atwood is owed $37,260 by the Debtor for legal services rendered prior to the Petition Date; this claim is unsecured. Mr. Coggeshall said the firm does not believe that the Pre-Petition Claim constitutes an interest adverse to the Debtor with respect to the matters on which the firm is to be employed. About New England Building Materials Based in Sanford, Maine, New England Building Materials LLC, fka Lavalley Lumber Company LLC and Poole Brothers, filed for Chapter 11 bankruptcy (Bankr. D. Maine Case No. 12-20109) on Feb. 14, 2012. New England Building Materials is engaged in the business of manufacturing and selling, at wholesale, Eastern White Pine lumber and related products. It was also engaged in the business of selling lumber products at retail, through outlets in Maine and Massachusetts, although, as of the bankruptcy filing date, it has made the determination to cease retail activities. Chief Judge James B. Haines Jr. presides over the case. Lawyers at Marcus, Clegg & Mistretta, P.A., serve as the Debtor's counsel. Windsor Associates LLC serves as financial advisors. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Richard I. Thompson, chief financial officer. NEW ENGLAND BUILDING: Hires Windsor Assoc. as Financial Advisors ---------------------------------------------------------------- New England Building Materials, LLC, seeks Bankruptcy Court permission to hire Windsor Associates, LLC and John C. Thibodeau -- windsor@maine.rr.com -- as financial advisors. Windsor had, prior to the filing of the Petition Date, served as financial consultants to the Debtor. Mr. Thibodeau attests that Windsor is disinterested and does not have an adverse interest to the Debtor's estate. Windsor maintains a $13,818.75 retainer for post-petition services to be rendered to the Debtor. With respect to fees and expenses incurred post-petition, the Debtor proposes to pay to Windsor its customary hourly rates. About New England Building Materials Based in Sanford, Maine, New England Building Materials LLC, fka Lavalley Lumber Company LLC and Poole Brothers, filed for Chapter 11 bankruptcy (Bankr. D. Maine Case No. 12-20109) on Feb. 14, 2012. New England Building Materials is engaged in the business of manufacturing and selling, at wholesale, Eastern White Pine lumber and related products. It was also engaged in the business of selling lumber products at retail, through outlets in Maine and Massachusetts, although, as of the bankruptcy filing date, it has made the determination to cease retail activities. Chief Judge James B. Haines Jr. presides over the case. Lawyers at Marcus, Clegg & Mistretta, P.A., serve as the Debtor's counsel. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Richard I. Thompson, chief financial officer. NEWPAGE CORP: Meets Unified Opposition to New Bonus Program ----------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that NewPage Corp. will face unified opposition at a hearing today, Feb. 23, from the official creditors' committee, an ad hoc group of holders of secured notes, and the U.S. Trustee. They are all against bankruptcy court approval of a bonus program that could pay as much as $17.2 million to 15 top executives. NewPage characterized the new bonus program as offering incentive bonuses because payments are keyed to meeting targets for cash flow, cost reductions, and improvements in worker safety. If approved, the new program would run until the end of 2012. The U.S. Trustee and the committee nonetheless argue that the proposal is a disguised retention bonus program. The committee says that the cash-flow target is so low that qualifying for the bonuses would simultaneously result in violating a covenant under the loan agreement financing the reorganization. The secured noteholders and the committee fault the program for providing no incentive for a prompt emergence from bankruptcy. The bankruptcy court, with blessing from the committee, previously approved a short-term bonus program that would pay as much as $6 million for a year ended in June. About NewPage Corp. Headquartered in Miamisburg, Ohio, NewPage Corporation was the leading producer of printing and specialty papers in North America, based on production capacity, with $3.6 billion in net sales for the year ended Dec. 31, 2010. The company's product portfolio is the broadest in North America and includes coated freesheet, coated groundwood, supercalendered, newsprint and specialty papers. These papers are used for corporate collateral, commercial printing, magazines, catalogs, books, coupons, inserts, newspapers, packaging applications and direct mail advertising. NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia, Canada. These mills have a total annual production capacity of roughly 4.1 million tons of paper, including roughly 2.9 million tons of coated paper, roughly 1.0 million tons of uncoated paper and roughly 200,000 tons of specialty paper. NewPage, along with affiliates, filed Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12804) on Sept. 7, 2011. Martin J. Bienenstock, Esq., Judy G.Z. Liu, Esq., and Philip M. Abelson, Esq., Dewey & Leboeuf LLP, in New York, serve as counsel. Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, serves as co-counsel. Lazard Freres & Co. LLC is the investment banker, and FTI Consulting Inc. is the financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. In its balance sheet, the Debtors disclosed $3.4 billion in assets and $4.2 billion in total liabilities as of June 30, 2011. At an organizational meeting of creditors held on Sept. 21, 2011, the Committee selected Paul Hastings LLP as its bankruptcy counsel and Young Conaway Stargatt & Taylor, LLP to act as its Delaware and conflicts counsel. NewPage prevailed over most objections from the official creditors' committee and won agreement from the bankruptcy judge on final approval of $600 million in secured financing. Moody's Investors Service assigned a Ba2 rating to the $350 million first-out revolving debtor-in-possession credit facility and a B2 rating to the $250 million second-out debtor-in- possession term loan for NewPage. NEXTWAVE WIRELESS: Solus Alternative Holds 9.9% Equity Stake ------------------------------------------------------------ In an amended Schedule 13G filing with the U.S. Securities and Exchange Commission, Solus Alternative Asset Management LP and its affiliates disclosed that, as of Dec. 31, 2011, they beneficially own 2,511,569 shares of common stock of Nextwave Wireless Inc. representing 9.99% of the shares outstanding. A full-text copy of the filing is available for free at http://is.gd/sgU2GB As of Dec. 31, 2011, the Funds managed on a discretionary basis by the Reporting Persons had the right to receive or the power to direct the receipt of dividends or the proceeds from the sale of the common stock. One such account, SOLA LTD, had the right to receive or the power to direct the receipt of dividends or the proceeds from the sale of more than 5% of the Common Stock. About NextWave Wireless San Diego, Calif.-based NextWave Wireless Inc. (OTC QB: WAVE) -- http://www.nextwave.com/-- is a wireless technology company that manages and maintains worldwide wireless spectrum licenses. Bankruptcy Warning The Company's current cash reserves are not sufficient to meet its payment obligations under its secured notes at their current maturity dates. Additionally, the Company will not be able to consummate sales of its wireless spectrum assets yielding sufficient proceeds to retire this indebtedness at the current scheduled maturity dates. If the Company is unable to extend maturity beyond 2011, or identify and successfully implement alternative financing to repay the Senior Notes and Second Lien Notes, the holders of the Company's secured notes could proceed against the assets pledged to collateralize these obligations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Insufficient capital to repay the Company's debt at maturity would significantly restrict its ability to operate and could cause the Company to seek relief through a filing in the United States Bankruptcy Court. Any alternative financing or maturity extension of the Company's secured notes may be costly to obtain, and could involve the issuance of equity securities that could cause significant dilution to the Company's existing stockholders and potentially limit the Company's net operating loss carry forwards. Going Concern Doubt As reported in the TCR on March 23, 2011, Ernst & Young LLP, in San Diego, Calif., expressed substantial doubt about NextWave Wireless'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 has a working capital deficiency, primarily comprised of the current portion of long term obligations of $784.6 million at Jan. 1, 2011, that is associated with the maturity of its debt. "The Company currently does not have the ability to repay this debt at maturity." OILSANDS QUEST: To Pay Bonuses to Keep Execs. While Under CCAA -------------------------------------------------------------- Effective Feb. 13, 2012, Oilsands Quest Inc. entered into three separate and essentially identical Retention Agreements with Annie Lamoureux, Vice President and Controller, Simon Raven, Vice President, Exploration and Development, and Garth Wong, President and Chief Executive Officer of the Company. To encourage the executives to continue their service with the Company during the Companies' Creditors Arrangement Act process, which was commended on Nov. 29, 2011, the Agreements provide for the payment of a retention bonus of 50% of the respective executive's base salary at Jan. 1, 2012, less statutory deductions. Pursuant to the Agreements, the payment of the Retention Bonus will be made in two parts, one payment comprising fifty percent of the Retention Bonus will be made within one month of the earlier of the exit from the CCAA process, as approved by the Alberta Court of Queen's Bench, or Dec. 31, 2012 or June 30, 2012. The second payment, comprising the remaining balance of the Retention Bonus, is to be made within one month of the earlier of the Target Date or Dec. 31, 2012. If the Target Date occurs prior to June 30, 2012, the Executives will not be eligible for the second payment. About Oilsands Quest Oilsands Quest Inc. -- http://www.oilsandsquest.com/-- is exploring and developing oil sands permits and licenses, located in Saskatchewan and Alberta, and developing Saskatchewan's first commercial oil sands discovery. The Company reported a net loss of US$10.3 million for the six months ended Oct. 31, 2011, compared with a net loss of US$25.1 million for the six months ended Oct. 31, 2010. The Company's balance sheet at Oct. 31, 2011, showed US$156.6 million in total assets, US$33.3 million in total liabilities, and stockholders' equity of US$123.3 million. As at Oct. 31, 2011, the Company had a deficit accumulated during the development phase of US$721.7 million. * * * On Nov. 29, 2011, the Company and certain of its subsidiaries voluntarily commenced proceedings under the CCAA obtaining an Initial Order from the Court of Queen's Bench of Alberta (the "Court"), in In re Oilsands Quest, Inc., et al., Case No. 1101- 16110. The CCAA Proceedings were initiated by: Oilsands Quest, Oilsands Quest Sask Inc., Township Petroleum Corporation, Stripper Energy Services, Inc., 1291329 Alberta, Ltd., and Oilsands Quest Technology, Inc. (collectively, the "Oilsands Entities"). Under the Initial Order, Ernst & Young, Inc., was appointed by the Court to monitor the business and affairs of the Oilsands Entities and creditors are stayed for a period of 30 days while the Oilsands Entities explore financing and restructuring alternatives and develop a comprehensive restructuring plan. The Plan must be approved by any affected shareholders and the Court in order to be implemented. Neither of Oilsands' other subsidiaries, 1259882 Alberta, Ltd., and Western Petrochemical Corp., have filed for creditor protection. Oilsands Quest requested and obtained an extension of the order providing creditor protection under the Companies' Creditors Arrangement Act (Canada), which was to expire Feb. 17, 2012. Creditor protection under the CCAA will now expire May 18, 2012, unless further extended as required and approved by the Court. OILSANDS QUEST: Gets Court OK for C$3.75-Mil. DIP Financing ----------------------------------------------------------- Oilsands Quest Inc. has received Court approval of its previously- announced DIP financing and its request to extend creditor protection. Court approval of the announced sale of the Company's Eagles Nest asset has been delayed, because a second party has come forward with a substantially higher offer for the asset. The Alberta Court of Queen's Bench approved Oilsands Quest's debtor-in-possession financing of CDN$3.75 million, to fund ongoing operating costs and other expenses while the Company is under creditor protection. Advances under the DIP facility are now available to the Company. Oilsands Quest also requested and obtained an extension of the order providing creditor protection under the Companies' Creditors Arrangement Act, which was to expire Feb. 17, 2012. Creditor protection under the CCAA will now expire May 18, 2012, unless further extended as required and approved by the Court. Oilsands Quest previously stated that it would request Court approval for the sale of its Eagles Nest property to an unrelated third party for CDN$4.4 million. However, on Feb. 15, 2012, the Company received an additional offer to purchase the Eagles Nest property from another third party. Under this new offer, the buyer would pay CDN$6 million for the asset, with a non-refundable deposit of CDN$400,000. In light of the late offer, the Court delayed its decision on the asset sale until Feb. 22, 2012, to allow time for the new offer to be evaluated fully and for any additional prospective bidders to come forward. Oilsands Quest continues to operate under the protection of CCAA with the assistance of a Court-appointed monitor. The Company's common shares remain suspended from trading until either a delisting occurs or until the NYSE permits the resumption of trading. About Oilsands Quest Oilsands Quest Inc. -- http://www.oilsandsquest.com/-- is exploring and developing oil sands permits and licences, located in Saskatchewan and Alberta, and developing Saskatchewan's first commercial oil sands discovery. ORLEANS HOMEBUILDERS: Dimensional Ceases to Hold 5% Equity Stake ---------------------------------------------------------------- Dimensional Fund Advisors LP filed an amended Schedule 13G with the U.S. Securities and Exchange Commission disclosing that, as of Dec. 31, 2011, it beneficially owns 76,000 shares of common stock of Orleans Homebuilders Inc. representing 0.4% of the shares outstanding. A full-text copy of the filing is available for free at http://is.gd/wGYvZ5 About Orleans Homebuilders Orleans Homebuilders, Inc. -- aka FPA Corporation, OHB, Parker & Lancaster, Masterpiece Homes, Realen Homes and Orleans -- develops, builds and markets high-quality single-family homes, townhouses and condominiums. From its headquarters in suburban Philadelphia, the Company serves a broad customer base including first-time, move-up, luxury, empty-nester and active adult homebuyers. The Company currently operates in these 11 distinct markets: Southeastern Pennsylvania; Central and Southern New Jersey; Orange County, New York; Charlotte, Raleigh and Greensboro, North Carolina; Richmond and Tidewater, Virginia; Chicago, Illinois; and Orlando, Florida. The Company's Charlotte, North Carolina operations also include adjacent counties in South Carolina. Orleans Homebuilders employs approximately 300 people. The Company filed for Chapter 11 bankruptcy protection on March 1, 2010 (Bankr. D. Del. Case No. 10-10684). Cahill Gordon & Reindell LLP is the Debtor's bankruptcy and restructuring counsel. Curtis S. Miller, Esq., and Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell, are the Debtor's Delaware and restructuring counsel. Blank Rome LLP is the Debtor's special corporate counsel. Garden City Group Inc. is the Debtor's claims and notice agent. Gerard S. Catalanello, Esq., and James J. Vincequerra, Esq., at Duane Morris LLP, in New York; Lawrence J. Kotler, at Duane Morris LLP, in Philadelphia, Pennsylvania; and Richard W. Riley, Esq., and Sommer L. Ross, Esq., at Duane Morris LLP, in Wilmington, Delaware, serve as counsel to the Official Committee of Unsecured Creditors. The Company estimated assets and debts at $100 million to $500 million as of the Petition Date. Orleans Homebuilders, Inc., in February 2011 completed its financial reorganization and emerged from Chapter 11 protection as a newly reorganized company. Orleans emerged with $160 million in new financing, including a $30 million revolving credit facility. * * * As reported in the Troubled Company Reporter on Feb. 18, 2011, Standard & Poor's Ratings Services raised its corporate credit rating on Orleans Homebuilders Inc. to 'B-' from 'D' and assigned a 'B-' issue-level rating to the company's $130 million secured term loan. S&P also assigned a '3' recovery rating on the secured term loan, indicating its expectation for a meaningful (50%-70%) recovery in the event of a payment default. The outlook is stable. OVERLAND STORAGE: Amends 5 Million Common Stock Prospectus ---------------------------------------------------------- Overland Storage, Inc., filed with the U.S. Securities and Exchange Commission Amendment No. 2 to Form S-3 relating to the offer and sell up to an aggregate of 5,000,000 shares of the Company's common stock from time to time in one or more offerings and in amounts, at prices and on terms that the Company will determine at the time of the offering. The Company will provide the specific terms of the shares of its common stock, including their offering price and the methods by which the Company will sell the shares of its common stock, in supplements to this prospectus. The Company may offer and sell the shares of its common stock on an immediate, continuous or delayed basis directly to investors or through underwriters, dealers or agents, or through a combination of these methods. If the Company uses agents, underwriters or dealers to sell any shares of its common stock, the Company will name them and describe their compensation in the applicable prospectus supplement. The Company's common stock is traded on The NASDAQ Capital Market under the symbol "OVRL". On Feb. 16, 2012, the last reported sale price for the Company's common stock on The NASDAQ Capital Market was $2.04 per share. Any shares of the Company's common stock sold pursuant to a prospectus supplement will be listed on The NASDAQ Capital Market. A full-text copy of the amended prospectus is available at: http://is.gd/eGk1vq About Overland Storage San Diego, Calif.-based Overland Storage, Inc. (Nasdaq: OVRL) -- http://www.overlandstorage.com/-- is a global provider of unified data management and data protection solutions designed to enable small and medium enterprises (SMEs), corporate departments and small and medium businesses (SMBs) to anticipate and respond to change. The Company reported a net loss of $14.50 million on $70.19 million of net revenue for the fiscal year ended June 30, 2011, compared with a net loss of $12.96 million on $77.66 million of net revenue during the prior fiscal year. Moss Adams LLP, in San Diego, California, noted that the Company's recurring losses and negative operating cash flows raise substantial doubt about the Company's ability to continue as a going concern. OVERLAND STORAGE: Jon Gruber Discloses 7.3% Equity Stake -------------------------------------------------------- In an amended Schedule 13G filing with the U.S. Securities and Exchange Commission, Jon D. Gruber and his affiliates disclosed that, as of Dec. 31, 2011, they beneficially own 1,713,000 shares of common stock of Overland Storage representing 7.3% of the shares outstanding. A full-text copy of the filing is available for free at http://is.gd/t4czkx About Overland Storage San Diego, Calif.-based Overland Storage, Inc. (Nasdaq: OVRL) -- http://www.overlandstorage.com/-- is a global provider of unified data management and data protection solutions designed to enable small and medium enterprises (SMEs), corporate departments and small and medium businesses (SMBs) to anticipate and respond to change. The Company reported a net loss of $14.50 million on $70.19 million of net revenue for the fiscal year ended June 30, 2011, compared with a net loss of $12.96 million on $77.66 million of net revenue during the prior fiscal year. Moss Adams LLP, in San Diego, California, noted that the Company's recurring losses and negative operating cash flows raise substantial doubt about the Company's ability to continue as a going concern. PHILADELPHIA ORCHESTRA: Wants Plan Filing Exclusivity Until May 11 ------------------------------------------------------------------ The Philadelphia Orchestra Association and the Academy of Music of Philadelphia, Inc., ask the Bankruptcy Court for entry of an order extending the exclusive periods to file a chapter 11 plan of reorganization for approximately 90 days, through and including May 11, 2012, and the time to solicit acceptances of the plan through and including July 10, 2012. Anne M. Aaronson, Esq., at Dilworth Paxson LLP notes that the Debtors operating a world renowned orchestra and performance venue, and there are myriad large and complex issues that must be addressed by the Debtors in these Chapter 11 Cases. The Debtors have focused substantial time and effort on stabilizing operations, fundraising, negotiating with significant creditors, and ensuring a smooth transition into chapter 11. The Debtors have also spent considerable time on employee-related issues, including employee benefits and pension issues and the Debtors' union contracts, which involved intense and lengthy negotiations. Ms. Aaronson submits that the Debtors have made a great deal of progress in these Chapter 11 Cases, including negotiating a settlement agreement with Peter Nero and the Philly Pops and a new collective bargaining agreement with the American Federation of Musicians, Local 77. Additionally, since the Petition Date, the Debtors have managed their organizations in very difficult economic times while also attending to the heightened requirements of the bankruptcy process. The Debtors are not seeking this extension to delay administration of their Chapter 11 Cases or to exert pressure on their creditors. About Philadelphia Orchestra The Philadelphia Orchestra -- http://www.philorch.org/-- claims to be among the world's leading orchestras. Bloomberg News says the orchestra became the first major U.S. symphony to file for bankruptcy protection, surprising the music world. Previous conductors include Fritz Scheel (1900-07), Carl Pohlig (1907-12), Leopold Stokowski (1912-41), Eugene Ormandy (1936-80), Riccardo Muti (1980-92), Wolfgang Sawallisch (1993-2003), and Christoph Eschenbach (2003-08). Charles Dutoit is currently chief conductor, and Yannick Nezet-Seguin has assumed the title of music director designate until he takes up the baton as The Philadelphia Orchestra's next music director in 2012. The Philadelphia Orchestra Association, Academy of Music of Philadelphia, Inc., and Encore Series, Inc., filed separate Chapter 11 petitions (Bankr. E.D. Pa. Case Nos. 11-13098 to 11-13100) on April 16, 2011. Judge Eric L. Frank presides over the case. The Philadelphia Orchestra Association is being advised by Dilworth Paxson LLP, its legal counsel, and Alvarez & Marsal, its financial advisor. Curley, Hessinger & Johnsrud serves as its special counsel. Philadelphia Orchestra disclosed $15,950,020 in assets and $704,033 in liabilities as of the Chapter 11 filing. Encore Series, Inc., tapped EisnerAmper LLP as accountants and financial advisors. Roberta A. DeAngelis, the U.S. Trustee for Region 3, appointed seven members to the official committee of unsecured creditors in the Debtors' case. Reed Smith LLP serves as the Committee's counsel. The orchestra postpetition signed a new contract with musicians and authority to terminate the existing musicians' pension plan. PINNACLE AIRLINES: FMR LLC Discloses 14.6% Equity Stake ------------------------------------------------------- In an amended Schedule 13G filing with the U.S. Securities and Exchange Commission on Feb. 13, 2012, FMR LLC and Edward C. Johnson 3d disclosed that they beneficially own 2,803,674 shares of common stock of Pinnacle Airlines Corp representing 14.658% of the shares outstanding. A full-text copy of the filing is available for free at http://is.gd/9YmaWw About Pinnacle Airlines Corp. Pinnacle Airlines Corp. (NASDAQ: PNCL) -- http://www.pncl.com/-- a $1 billion airline holding company with 7,800 employees, is the parent company of Pinnacle Airlines, Inc.; Mesaba Aviation, Inc.; and Colgan Air, Inc. Flying as Delta Connection, United Express and US Airways Express, Pinnacle Airlines Corp. operating subsidiaries operate 199 regional jets and 80 turboprops on more than 1,540 daily flights to 188 cities and towns in the United States, Canada, Mexico and Belize. Corporate offices are located in Memphis, Tenn., and hub operations are located at 11 major U.S. airports. The Company reported $8.81 million on $938.05 million of total operating revenue for the nine months ended Sept. 30, 2011, compared with net income of $17.02 million on $729.13 million of total operating revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $1.53 billion in total assets, $1.42 billion in total liabilities and $112.31 million in total stockholders' equity. PINNACLE AIRLINES: Wayne King Discloses 3.2% Equity Stake --------------------------------------------------------- In an amended Schedule 13G filing with the U.S. Securities and Exchange Commission, Wayne King and his affiliates disclosed that, as of Feb. 16, 2012, they beneficially own 618,664 shares of common stock of Pinnacle Airlines Corp. representing 3.23% of the shares outstanding. A full-text copy of the Schedule is available for free at http://is.gd/grCSUs About Pinnacle Airlines Corp. Pinnacle Airlines Corp. (NASDAQ: PNCL) -- http://www.pncl.com/-- a $1 billion airline holding company with 7,800 employees, is the parent company of Pinnacle Airlines, Inc.; Mesaba Aviation, Inc.; and Colgan Air, Inc. Flying as Delta Connection, United Express and US Airways Express, Pinnacle Airlines Corp. operating subsidiaries operate 199 regional jets and 80 turboprops on more than 1,540 daily flights to 188 cities and towns in the United States, Canada, Mexico and Belize. Corporate offices are located in Memphis, Tenn., and hub operations are located at 11 major U.S. airports. The Company reported $8.81 million on $938.05 million of total operating revenue for the nine months ended Sept. 30, 2011, compared with net income of $17.02 million on $729.13 million of total operating revenue for the same period a year ago. The Company's balance sheet at Sept. 30, 2011, showed $1.53 billion in total assets, $1.42 billion in total liabilities and $112.31 million in total stockholders' equity. QUALTEQ INC: BofA Wins Bid to Transfer Case Venue to Chicago ------------------------------------------------------------ Bankruptcy Judge Kevin J. Carey in Delaware granted the request of Bank of America, N.A., to transfer the venue of the Chapter 11 cases of Qualteq, Inc., d/b/a VCT New Jersey, Inc., and its debtor-affiliates to the U.S. Bankruptcy Court for the Northern District of Illinois. Brenda Helms, Chapter 7 Trustee for the Estate of Pethinaidu Veluchamy and Parameswari Veluchamy, filed a joinder to the request. The Debtors, Sterling National Bank, and Plami, S.A. de C.V. objected to the venue transfer. Although the members of the Official Committee of Unsecured Creditors are geographically located closer to Chicago, Illinois than Wilmington, Delaware, the Committee also opposes BofA's motion to transfer venue and wants venue to remain in Delaware. Judge Carey, however, pointed to various facts that warrant transfer of the case, including, among others: -- Of the 5,258 creditors, only 10 are listed with addresses in Delaware, while 2,394 (or approximately 45.5%) are listed with addresses in Illinois and the remaining (approximately 55.5% are listed with addresses outside of Illinois; -- 77% of the total amount of the Debtors' outstanding scheduled indebtedness is payable to creditors scheduled with addresses in Illinois; -- The Debtors have disclosed $132.8 million in total debt, $103.1 million of which is owed to Illinois creditors; -- The Debtors have disclosed $99.8 million in secured debt, $76.1 million of which is owed to Illinois creditors. The Debtors also have disclosed $34 million in unsecured debt, $26.9 million of which is owed to Illinois creditors; -- All of the Debtors except Qualteq are Illinois entities and are headquartered in Illinois; -- The Debtors operate nine domestic facilities, including seven in Illinois, one in Iowa, and one in New Jersey. None of the Debtors' businesses are operated out of facilities located in Delaware; and -- 82% of the Debtors' assets (including real and personal property) are located in Illinois. None of the Debtors' assets are located in Delaware. Judge Carey also pointed out that, as evidenced by the Monthly Fee Statements filed by EisnerAmper LLP, as accountants and financial advisors to the Committee, for the period from August 29, 2011 through October 31, 2011, EisnerAmper professionals traveled an aggregate 49.7 hours to Chicago to review the Debtors' records and conduct 75 hours of on-site analysis regarding the Debtors' Chicago-based operations. During the same period, EisnerAmper professionals spent 2 hours reviewing records and analyzing operations at Qualteq's New Jersey Facility (approximately 2.6% of all on-site work conducted). On Jan. 18, 2012, the Debtors filed a Disclosure Statement for their Amended Joint Plan of Reorganization. A hearing on the Disclosure Statement is scheduled for March 27, 2012. According to Bill Rochelle, bankruptcy columnist at Bloomberg News, the plan proposes to pay unsecured creditors in full with interest over 10 years. Existing secured debt would be refinanced under the plan. Current suppliers will be paid in full six months after the plan becomes effective. Other unsecured creditors won't begin to receive their payments until after current suppliers are fully paid. The plan allows existing shareholders to retain ownership. A copy of Judge Carey's Feb. 16, 2012 Memorandum and Order is available at http://is.gd/vcCy2Gfrom Leagle.com. 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. Eisneramper LLP is the accountants and financial advisors. Scouler & Company is the restructuring advisors. Lowenstein Sandler PC is counsel to the Committee. Avadamma LLC disclosed $38,491,767 in assets and $36,190,943 in liabilities as of the Petition Date. Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed four unsecured creditors to serve on the Official Committee of Unsecured Creditors. RANCHER ENERGY: Posts $334,400 Net Loss in Dec. 31 Quarter ---------------------------------------------------------- Rancher Energy Corp. reported a net loss of $334,496 on $0 revenue for the three months ended Dec. 31, 2011, compared with a net loss of $1.4 million on $0 revenue for the same period ended Dec. 31, 2010. For the nine months ended Dec. 31, 2011, the Company has reported a net loss of $923,574 on $nil revenue as compared to a net loss of $4.4 million on $nil revenue for the same period ended Dec. 31, 2010. The Company's balance sheet at Dec. 31, 2011, showed $5.9 million in total assets, $2.4 million in total liabilities, and stockholders' equity of $3.5 million. The Company expects to file its second amended proposed plan of reorganization, and the disclosure statement for the proposed plan of reorganization with the Court before the end of the Company's 2012 fiscal year-end (March 31, 2012). A copy of the Form 10-Q is available for free at: http://is.gd/M0wRb5 About Rancher Energy Denver, Colorado-based Rancher Energy Corp. (OTC BB: RNCHQ) -- http://www.rancherenergy.com/-- is an independent energy company that explores for and develops produces, and markets oil and gas in North America. Through March 2011, the Company operated four oil fields in the Powder River Basin, Wyoming. Effective March 1, 2011, the Company sold all of its oil and gas properties, which has allowed it to eliminate the majority of its debt and also provide financial resources during its continuing reorganization. The Company was formerly known as Metalex Resources, Inc., and changed its name to Rancher Energy Corp. in 2006. Rancher Energy Corp. was incorporated in the State of Nevada on Feb. 4, 2004. Rancher Energy filed for Chapter 11 bankruptcy protection on Oct. 28, 2009 (Bankr. D. Colo. Case No. 09-32943). Herbert A. Delap, Esq., who has an office in Denver, Colorado, assists the Debtor in its restructuring effort. In its petition, the Company estimated assets and debts of between $10 million and $50 million each. As reported in the TCR on March 25, 2011, the Company delivered to the Bankruptcy Court a first amended Chapter 11 plan of reorganization, and first amended disclosure statement explaining that plan. The Company sold substantially all of its assets effective March 1, 2011. ROSELAND VILLAGE: Plan Outline Hearing Continued Until March 6 -------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Virginia has continued until March 6, 2012, at 12:00 p.m., the hearing to consider adequacy of Disclosure Statement explaining G.B.S. Holding, Ltd., and Roseland Village, LLC's proposed Plan of Reorganization. As reported in the Troubled Company Reporter on Nov. 11, 2011, the Debtors proposed to develop the property and pay all creditors the principal balance owed to them, plus interest at market rates, over a five-year period. As a backstop, the Debtors are proposing to sell or allow a secured creditor to foreclose on the property that serves as its collateral if payments are not made or commenced to the satisfaction of the secured creditor at the end of the fifth year from the Effective Date. Based on the Debtors' calculations, if Roseland is developed as they plan, there are sufficient assets to pay all of their creditors 100% of the obligations owed to them. Funding for the initial phase of development of infrastructure will be sourced from deposits from a national builder and, if necessary, loans from private equity sources. Partnerships with various municipal agencies and private investors can also be developed to fund key components of the project's infrastructure. Roseland Village owes its secured creditors approximately $20,782,634. Unsecured Claims without priority total $490,107.61. Included in this amount is $422,987 owed to insiders. On the other hand, GBS owes its secured creditors' Creditors in the approximate amount of $23,079,101.56. Unsecured Claims without priority total $1,243,068.37. Included in this amount is $1,122,660.11 owed to insiders. Equity Holders in both Roseland Village and GBS will maintain the same equity interest that they had in the Debtors prior to the filing of the Chapter 11 Petition. The equity holders will only receive a distribution if all non-insider creditors receive all the payments that are set forth in the Plan. A copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/roselandvillage.dkt69.pdf About GBS Holding Based in Midlothian, Virginia, G.B.S. Holding, Ltd., filed for Chapter 11 (Bankr. E.D. Va. Case No. 11-33708) on June 3, 2011. Chief Judge Douglas O. Tice Jr. presides over the case. DurretteCrump PLC serves as the Debtor's bankruptcy counsel. In its petition, the Debtor estimated assets of $50 million to $100 million and debts $10 million to $50 million. The petition was signed by George B. Sowers, Jr., president, who serves as the Debtor's designee pursuant to a court order. Affiliate Roseland Village, LLC, filed for Chapter 11 (Bankr. E.D. Va. Case No. 11-30223) on Jan. 13, 2011. G.B.S. Holding, Ltd., owns 50% of Roseland Village, LLC. DurretteCrump also represents Roseland Village. Roseland Village and GBS jointly own 1,288+/- acres adjoining each other that are jointly part of a larger assemblage of land, known as Roseland, which has been given approval from Chesterfield County as a Master Planned Development consisting of more than 1.5 million square feet of commercial space and more than 5,600 housing units. Roseland consists of 29 separate parcels that were acquired over a nine-year period. The property is located south of Route 288 at its intersection with Woolridge Road. Development of the assembled parcel will take place in some cases without regard to the property lines of the original 29 parcels that comprise the land titled to GBS and Roseland Village. SEAHAWK DRILLING: Chilton Investment Ceases to Own Common Stock --------------------------------------------------------------- Chilton Investment Company, LLC, discloses that as of Dec. 31, 2011, it has has ceased to be the beneficial owner of any shares of Seahawk Drillingm Inc.'s $0.01 par value Common Stock. A copy of the Schedule 13G/A is available for free at: http://is.gd/k1kmHl 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. SEAHAWK DRILLING: Lonestar Capital Ceases to Own Common Stock ------------------------------------------------------------- Lonestar Capital Management LLC, et al., disclose that as of Dec. 31, 2011, they have ceased to own any shares of Seahawk Drilling, Inc.'s $0.01 par value common stock. A copy of the Schedule 13G/A is available for free at: http://is.gd/UfIUY6 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. SNOKIST GROWERS: Signs $42.5 Million Sale to Truitt Brothers ------------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Snokist Growers has an agreement to sell the business for $42.5 million to Truitt Brothers Inc. Snokist is proposing that the bankruptcy court require other bids by March 14. The auction would take place in the courtroom at a proposed hearing on March 16 for approval of the sale. According to the report, Truitt's offer includes $5.2 million cash plus assumption of liabilities. In addition, the buyer will pay as much as $3 million more depending on future profits. Snokist project having $12.5 million cash after the sale is completed, including cash already generated from the sale of inventory. Snokist projects that the sale to Truitt "would likely pay all" creditors in full. The report notes that Del Monte Corp. also made an offer to buy the business. Since Del Monte wouldn't acquire the inventory and Snokist didn't have financing to sell the remaining finished product, the Truitt offer was "more favorable," according to Alex Cereste, a turnaround manager not involved in the case. About Snokist Growers Headquartered in Yakima, Washington Snokist Growers -- http://www.snokist.com/-- is a century-old cooperative of fruit growers. Snokist provides fresh and processed pears, apples, cherries, plums, and nectarines. Snokist Growers filed for Chapter 11 bankruptcy (Bankr. E.D. Wash. Case No. 11-05868) on Dec. 7, 2011, with plans to liquidate after sales couldn't recover from allegations that it violated food- safety rules. Judge Frank L. Kurtz presides over the case. Lawyers at Bailey & Busey LLC serve as the Debtor's counsel. In its petition, the Debtor scheduled $69,567,846 in assets and $73,392,906 in liabilities. The petition was signed by Jim Davis, president. Counsel for lender Rabo AgriFinance, as agent for itself and KeyBank, is James Ray Streinz, Esq. -- rays@mcewengisvold.com -- at McEwen Gisvold, LLP. Counsel for KeyBank National Association is Bruce W. Leaverton, Esq., at Lane Powell, P.C., in Seattle. Robert D. Miller Jr., the United States Trustee for Region 14, appointed three unsecured creditors to serve on the Official Committee of Unsecured Creditors of Snokist Growers. The Committee is represented by Metiner G. Kimel, Esq., at Kimel Law Offices. STANFORD FINANCIAL: SIPC Opposes Taking Over Ponzi Liquidation -------------------------------------------------------------- Investors in the R. Allen Stanford Ponzi scheme aren't entitled to have their claims paid by the Securities Investor Protection Corp., according to the brief filed last week by the SIPC in U.S. District Court in Washington, Bloomberg News bankruptcy columnist Bill Rochelle reported. According to the report, the filing was in opposition to an effort by the Securities and Exchange Commission to force SIPC to pay Stanford's defrauded customers up to the limits contained in the Securities Investor Protection Act. Mr. Rochelle recounts that the SEC started the lawsuit in December aimed at forcing SIPC to take over the liquidation of Stanford's brokerage, Stanford Group Co. In response to SIPC's papers, the SEC can file another set of pleadings on Feb. 23. U.S. District Robert L. Wilkins in Washington will hold a conference on March 5 where he will have an opportunity to rule whether the Stanford liquidation belongs under SIPC's wing. SIPC argued in last week's filing that its fund can't be used to pay Stanford's victims because the fraud involved certificates of deposit issued by a bank in Antigua, not by a broker in the U.S. that's a member of SIPC. SIPC make a technical argument that there are no "customers" because no one gave money or securities to a broker for the purpose of safekeeping or sale. Rather, SIPC said that the defrauded investors sent their money to the bank in Antigua and received physical possession of certificates of deposit. Thus, the Stanford broker was never in possession of anyone's cash or securities. If Wilkins decides that the SIPC fund should be used to pay victims in part, the case will move to a district court in Texas that will preside over what would then be a SIPC liquidation. The case is Securities and Exchange Commission v. Securities Investor Protection Corp., 11-mc-00678, U.S. District Court, District of Columbia (Washington). About Stanford International Bank Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. On Feb. 16, 2009, the United States District Court for the Northern District of Texas, Dallas Division, signed an order appointing Ralph Janvey as receiver for all the assets and records of Stanford International Bank, Ltd., Stanford Group Company, Stanford Capital Management, LLC, Robert Allen Stanford, James M. Davis and Laura Pendergest-Holt and of all entities they own or control. The February 16 order, as amended March 12, 2009, directs the Receiver to, among other things, take control and possession of and to operate the Receivership Estate, and to perform all acts necessary to conserve, hold, manage and preserve the value of the Receivership Estate. The U.S. Securities and Exchange Commission, on Feb. 17, charged before the U.S. District Court in Dallas, Texas, Mr. Stanford and three of his companies for orchestrating a fraudulent, multi- billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. A criminal case was pursued against him in June before the U.S. District Court in Houston, Texas. Mr. Stanford pleaded not guilty to 21 charges of multi-billion dollar fraud, money-laundering and obstruction of justice. Assistant Attorney General Lanny Breuer, as cited by Agence France-Presse News, said in a 57-page indictment that Mr. Stanford could face up to 250 years in prison if convicted on all charges. Mr. Stanford surrendered to U.S. authorities after a warrant was issued for his arrest on the criminal charges. The criminal case is U.S. v. Stanford, H-09-342, U.S. District Court, Southern District of Texas (Houston). The civil case is SEC v. Stanford International Bank, 3:09-cv-00298-N, U.S. District Court, Northern District of Texas (Dallas). T3 MOTION: Bruce Nelson Named Independent Director -------------------------------------------------- The Board of Directors of T3 Motion, Inc., appointed Bruce K. Nelson to serve as an independent director as defined in Rule 10A- 3(b)(1) of the Securities Exchange Act of 1934, as amended, for a term of one year. Mr. Nelson will also serve as the Chairman of the Company's Audit Committee. The Board of Directors determined that Mr. Nelson possesses accounting or related financial management experience that qualifies him as financially sophisticated within the meaning of Section 803B of the NYSE Amex LLC Company Guide and that he is an "audit committee financial expert" as defined by the rules and regulations of the Securities and Exchange Commission. Pursuant to a one year agreement with the Company, Mr. Nelson will receive, subject to the approval of the Company's Compensation Committee, a cash fee of $20,000 for his service on the Board of Directors and an additional cash fee of $5,000 for his service on the Audit Committee. Upon execution of his agreement, Mr. Nelson was awarded a 5-year option to purchase up to 25,000 shares of common stock of the Company at an exercise price equal to the fair market value of the common stock of the Company on the date of the grant, such option vesting in full on the first anniversary of the date of the grant. The Company will also reimburse Mr. Nelson for expenses related to his attending meetings of the Board of Directors, meetings of the Audit Committee, executive sessions and shareholder meetings. Mr. Nelson, 57, served as Executive Vice President and Chief Financial Officer of Global Clean Energy Holdings, Inc., from 2007 through 2011. Before joining Global Clean Energy Holdings, Inc., he also served as Chief Financial Officer of US Modular, a private technology company located in Irvine, California. From 2002 through February 2007, Mr. Nelson served as Chief Financial Officer of netGuru, Inc., a NASDAQ-listed global software and IT service company. Mr. Nelson served as a U.S. Naval Officer for six years after graduating from the University of Southern California, majoring in finance. Mr. Nelson holds a MBA degree from Bryant University in Smithfield, Rhode Island. He has also served on the board of directors of a commercial bank, a NASDAQ- listed technology company, and a privately held specialty hospital. About T3 Motion Costa Mesa, Calif.-based T3 Motion, Inc., develops and manufactures T3 Series vehicles, which are electric three-wheel stand-up vehicles that are directly targeted to the public safety and private security markets. The Company has incurred significant operating losses and has used substantial amounts of working capital in its operations since its inception. The Company has an accumulated deficit of $50.7 million as of June 30, 2011, and has a net loss of $1.3 million and used cash in operations of $3.9 million for the six months ended June 30, 2011. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company reported a net loss of $8.32 million on $4.68 million of net revenues for the year ended Dec. 31, 2010, compared with a net loss of $6.70 million on $4.64 million of net revenues during the prior year. The Company also reported a net loss of $2.51 million on $4.21 million of net revenues for the nine months ended Sept. 30, 2011, compared with a net loss of $4.39 million on $3.62 million of net revenues for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $8.10 million in total assets, $3.08 million in total liabilities and $5.01 million in total stockholders' equity. TANNIN, INC.: Case Summary & 8 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Tannin, Inc. P.O. Box 1010 Orange Beach, AL 36561 Bankruptcy Case No.: 12-00593 Chapter 11 Petition Date: February 20, 2012 Court: U.S. Bankruptcy Court Southern District of Alabama (Mobile) Debtor's Counsel: Alexandra K. Garrett, Esq. SILVER, VOIT & THOMPSON 4317-A Midmost Drive Mobile, AL 36609 Tel: (251) 343-0800 Fax: (251) 343-0862 E-mail: agarrett@silvervoit.com - and ? Lawrence B. Voit, Esq. SILVER, VOIT & THOMPSON 4317-A Midmost Drive Mobile, AL 36609-5507 Tel: (251) 343-0800 E-mail: lvoit@silvervoit.com Scheduled Assets: $54,396,740 Scheduled Liabilities: $2,379,421 The petition was signed by George A. Gounares, president. Debtor's List of Its Eight Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Kelley Ouzts -- $111,572 16 Market Street Orange Beach, AL 36561 First Federal Bank -- $56,650 1300 McFarland Boulevard, N.E. Tuscaloosa, AL 35404 Cabaniss, Johnston -- $50,000 63 Royal Street S. Mobile, AL 36602 Baldwin County Revenue Commissioner-- $13,625 Martin Copeland -- $4,300 Cherry Bekaert Holland -- $4,140 RBC -- $2,980 Wilkins Miller Hieronymus -- $350 TRIAD GUARANTY: Incurs $60.9 Million Net Loss in Dec. 31 Qtr. ------------------------------------------------------------- Triad Guaranty Inc. reported a net loss of $60.93 million on $57.18 million of total revenues for the three months ended Dec. 31, 2011, compared with net income of $26.76 million on $48.68 million of total revenues for the same period during the prior year. The Company reported a net loss of $107.76 million on $207.38 million of total revenues for the twelve months ended Dec. 31, 2011, compared with net income of $132.09 million on $254.72 million of total revenues a year ago. Triad Guaranty's balance sheet at Dec. 31, 2011, showed $896.22 million in total assets, $1.59 billion in total liabilities and a $703.57 million stockholders' deficit. Ken Jones, President and CEO, said, "Stubbornly high unemployment, tight credit and depressed home prices have prevented any meaningful recovery in the housing market, which continues to negatively impact our financial results. During the fourth quarter of 2011, we increased the frequency factors utilized in our reserve calculation, which added approximately $30 million to the loss for the quarter. As necessary, we make refinements to our reserve estimate each quarter to reflect actual experience. Risk in default continued to decline during the fourth quarter, but at a slower rate than we experienced during the previous five quarters. Settled claims declined 14% from the third quarter while cures and newly reported defaults remained essentially flat during the 2011 fourth quarter. Persistency, the key driver of our earned premiums, remained at elevated levels compared to historical norms as many borrowers are finding it very difficult to sell their homes." A full-text copy of the press release is available for free at: http://is.gd/ufOKnq About Triad Guaranty Winston-Salem, N.C-based Triad Guaranty Inc. (OTC BB: TGIC) -- http://www.triadguaranty.com/-- is a holding company that historically provided private mortgage insurance coverage in the United States through its wholly-owned subsidiary, Triad Guaranty Insurance Corporation. TGIC is a nationwide mortgage insurer pursuing a run-off of its existing in-force book of business. Ernst & Young LLP expressed substantial doubt about the Company's ability to continue as a going concern. The Company is operating the business in run-off under Corrective Orders with the Illinois Department of Insurance and has reported a stockholders' deficiency in assets at Dec. 31, 2010. Bankruptcy Warning A deficit in assets occurs when recorded liabilities exceed recorded assets in financial statements prepared under GAAP. A deficiency in policyholders' surplus occurs when recorded liabilities exceed recorded assets in financial statements prepared under SAP. A deficit in assets at any particular point in time under GAAP is not necessarily a measure of insolvency. However, the Company believes that if Triad were to report a deficiency in policyholders' surplus under SAP for an extended period of time, Illinois law may require the Department to seek receivership of Triad, which could compel TGI to institute a proceeding seeking relief from creditors under U.S. bankruptcy laws, or otherwise consider dissolution of the Company. The second Corrective Order was designed in part to help Triad maintain its policyholders' surplus. The Company has prepared its financial statements on a going concern basis under GAAP, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. However, there is substantial doubt as to the Company's ability to continue as a going concern. This uncertainty is based on, among other things, the possible failure of Triad to comply with the provisions of the Corrective Orders and the Company's ability to generate enough income over the term of the remaining run-off to overcome its $630.9 million deficit in assets at Sept. 30, 2011. TRIBUNE CO: Has Paid $230.7-Mil. to Advisors in Bankruptcy ---------------------------------------------------------- Tribune Co. and its debtor affiliates made payments totaling $230,760,575 to bankruptcy professionals since their bankruptcy filing in December 2008, according to a December 2011 monthly operating report filed with the Court. For the period November 21, 2011 to December 25, 2011, the Debtors paid $11,001,404 in fees and expenses to Sidley Austin LLP and scores of restructuring advisors. Tribune also posted a net income of $62,068,000 for the period November 21, 2011 to December 25, 2011, compared to $43,342,000 million for the period ended November 22, 2010 to December 26, 2010. In late January, Chicago Tribune has offered a buyout package to newsroom staff to cut employees. Crain's Chicago Business notes that the company is searching other revenue streams to offset a decline in print advertising and readership in the past several years. To that end, Chicago Tribune is launching a literary section called Printers Row that will be sold separately to the paper's subscribers for $99 per year and to nonsubscribers for $149, the report noted. Douglas Baird, a professor at the University of Chicago Law School, notes that the overhang of bankruptcy could make it more difficult to boost profits because top talent is often reluctant to join a company in bankruptcy proceedings, Crain's Chicago Business relayed. Indeed, Tribune management is likely to be revamped following the designation of a new board, the report said. The board members will be selected in conjunction with the approval of a reorganization plan, the report added. About Tribune Co. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 08-13141) on Dec. 8, 2008. The Debtors proposed Sidley Austin LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North America LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to the Official Committee of Unsecured Creditors. AlixPartners LLP is the Committee's financial advisor. Landis Rath Moelis & Company serves as the Committee's investment banker. Thomas G. Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the Committee in connection with the lawsuit filed against former officers and shareholders for the 2007 LBO of Tribune. Protracted negotiations and mediation efforts and numerous proposed plans of reorganization filed by Tribune Co. and competing creditor groups have delayed Tribune's emergence from bankruptcy. Many of the disputes among creditors center on the 2007 leveraged buyout fraudulence conveyance claims, the resolution of which is a key issue in the bankruptcy case. The bankruptcy court has scheduled a May 16 hearing on Tribune's plan. Tribune CRO Don Liebentritt said it is possible the media company could emerge late in the third quarter of 2012. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TRIBUNE CO: Hearing on Supplemental Disclosures on March 23 ----------------------------------------------------------- Tribune Company and its debtor affiliates; the Official Committee of Unsecured Creditors; Oaktree Capital Management, L.P.; Angelo, Gordon & Co., L.P.; and JPMorgan Chase Bank, N.A. submitted to Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware a modified Third Amended Joint Plan of Reorganization and accompanying supplemental disclosure document, as modified on February 20, 2012. On December 29, 2011, the Court issued an opinion and related order that clarified and modified certain aspects of the October 31, 2011 opinion denying confirmation of the Competing Plans. On January 24, 2012, Judge Carey established deadlines for the (i) resolution of the Allocation Disputes and (ii) consideration of the DCL Plan Proponents' Supplemental Disclosure Document, Solicitation Procedures Motion and the Third Amended Joint Plan. The Third Amended Plan contains modifications that conform to the Confirmation Opinion, as modified by the Reconsideration Opinion, and miscellaneous provisions. Other Parent Claim Allocation Matter The Third Amended Plan provides that holders of claims will receive the same distributions as those provided under the Second Amended Plan of Reorganization subject to any further adjustments necessary to reflect the adjudication or resolution of the Allocation Disputes. Pursuant to the Allocation Dispute Protocol under the Third Amended Plan, the Court will determine: (1) Whether and to what extent the Distributions under Article III of the Third Amended Plan or the priority of distributions from the Creditors' Trust must be adjusted in order for the distributions under the Third Amended Plan to satisfy the applicable requirements of the Bankruptcy Code in connection with assertions that any category of Other Parent Claims should or should not be entitled to benefit from the PHONES Subordination Provisions and the EGI-TRB LLC Subordination Provisions; (2) the distributions under the Third Amended Plan will be modified to reflect such a determination or resolution; and (3) certain other Allocation Disputes may be adjudicated or resolved at or in connection with an Allocation Dispute hearing scheduled for March 5, 2012, and subject to confirmation of a Chapter 11 Plan. Tribune Chief Restructuring Officer Donald J. Liebentritt notes that the adjudication or resolution of the Other Parent Claim Allocation Matter may potentially impact to whom approximately $30.8 million (if Low PHONES) or $37.6 million (if High PHONES) will be distributed under the Third Amended Plan. The DCL Plan Proponents prepared a table summarizing how these amounts would potentially be distributed if the Bankruptcy Court was to determine that (i) all of the Other Parent Claims are entitled to receive the benefit of the PHONES Subordination Provisions and the EGI-TRB Subordination Provisions and (ii) none of the Other Parent Claims are entitled to receive the benefit of the PHONES Subordination Provisions or the EGI-TRB Subordination Provisions: Third Only Amended Senior Noteholders (In thousands) Plan Benefit ------- ------------------ Low High PHONES PHONES -------- --------- Allowed Amount of PHONES Notes Claims N/A $760,881 $1,196,823 Senior Noteholder Claims $431,041 $461,016 $467,800 Other Parent Claims - Retirees $37,843 $25,611 $22,920 Other Parent Claims - Trade & Other $3,169 $2,145 $1,920 Other Parent Claims - Swap Claim $54,403 $36,818 $32,950 In order to fully and fairly resolve any issues relating to or implicated by the Other Parent Claim Allocation Matter, those issues will be adjudicated or resolved pursuant to the Allocation Dispute Protocol. In the event (a) the Court was to determine that all of the Other Parent Claims constitute "Senior Indebtedness" and "Senior Obligations," and (b) the Litigation Trust was to recover gross proceeds ranging between $0 and $750 million, then the Holders of Senior Noteholder Claims and Other Parent Claims would potentially receive these distributions under the Third Amended Plan: * projected distributions to holders of each of Senior Noteholder Claims, Retiree Claims and General Unsecured Trade Claims would equal to (a) 33.6% in the event the Litigation Trust was to recover no gross proceeds, (b) approximately 46.6% in the event the Litigation Trust was to recover $250 million of gross proceeds, (c) approximately 58.2% in the event the Litigation Trust was to recover $500 million of gross proceeds, and (d) approximately 69.8% in the event the Litigation Trust were to recover $750 million of gross proceeds; and * projected distributions to the Holders of the Swap Claim would equal approximately 36.0% in the event the Litigation Trust was to recover no gross proceeds, $250 million of gross proceeds, $500 million of gross proceeds, or $750 million of gross proceeds. If (a) the Court was to determine that (i) none of the Other Parent Claims constitute "Senior Indebtedness," or "Senior Obligations" and (ii) the PHONES are Allowed in the amount of $1,196,823, and (b) the Litigation Trust was to recover gross proceeds ranging between $0 and $750 million, then the Holders of Senior Noteholder Claims and Other Parent Claims would potentially receive these distributions under the Third Amended Plan: Litigation Trust % Recovery --------------------------- $0 $250-Mil. $500-Mil. $750-Mil. ----- --------- --------- --------- Senior Noteholder Claims 36.5% 50.0% 62.2% 74.3% Swap Claim 21.8% 21.8% 21.8% 21.8% Retiree Claims 19.4% 25.8% 31.5% 37.3% General Unsecured Trade Claims 19.4% 25.8% 31.5% 37.3% A full-text copy of the Subordination Allocation is available for free at: http://bankrupt.com/misc/Tribune_AmSubordinationAllocation.pdf After the Court has issued a decision on the Allocation Disputes that are relevant for purposes of determining that the distributions made under the Third Amended Plan, the DCL Proponents will file and serve on the Parties and affected Holders of Claims a notice setting forth all adjustments to the Article III Distributions resulting from the resolution of the Allocation Disputes, unless resolution of the Allocation Disputes does not result in any adjustment to Article III Distributions. In other modifications, the Third Amended Plan provides that the effect of the releases under the Third Amended Plan is to preclude third parties (including, without limitation, the Creditors' Committee, any other estate representative and individual creditors that are not deemed to have given a release under Section 11.2 of the Third Amended Plan) from asserting, on behalf of the Debtors' estates or otherwise, any Released Claims. The Third Amended Plan also incorporated a language in its Bar Order finding that each Plaintiff is hereby enjoined and restrained from seeking relief or collecting judgments against any Non-Settling Defendants in any manner that fails to conform to the terms of this Bar Order, including, without limitation, the proportionate judgment reduction provision set forth herein. Miscellaneous Provisions of Plan A. Distribution to MSCS The Third Amended Plan clarifies that, with respect to distributions to be made to Holders of Senior Noteholder Claims under the Third Amended Plan, Reorganized Tribune will (a) withhold the amount of any consideration allocable to the Senior Noteholder Claims held by Morgan Stanley Capital Services Inc. and its affiliates, including, without limitation, Morgan Stanley & Co., Inc. and (b) hold that amount in a reserve pending a determination of the allowance of MSCS's Senior Noteholder Claims and MSCS's entitlement to those distributions. B. Participation in the Step Two/Disgorgement Settlement The Third Amended Plan provides that any of the Step Two Arrangers and current or former Senior Lenders or Bridge Lenders that elected to participate in the Step Two/Disgorgement Settlement will be deemed to have elected to participate in the Step Two/Disgorgement Settlement in connection with the Third Amended Plan. Any Potential Step Two Disgorgement Defendant that did not elect to participate in the Step Two/Disgorgement Settlement can still do so on or before the Confirmation Hearing or a later date as may be agreed to by the Step Two Arrangers. C. Retention of Litigation Trust Valuation Expert The Third Amended Plan has been modified to clarify that the Debtors will retain a valuation expert to determine and provide to the Debtors an initial estimated fair market value of all Litigation Trust Assets to be transferred to the Litigation Trust. In the Confirmation Opinion, the Court found persuasive Lazard's January 2011 Reorganized Value Analysis and concluded that "the Debtors' Total Distributable Value is . . . $7.019 billion." Accordingly, the Debtors are updating the Court-approved valuation of $7.019 billion to reflect the impact on value of developments since completion of the January 2011 Reorganized Value Analysis, Mr. Liebentritt says. However, the Debtors are still completing the valuation update. The DCL Proponents expect to provide additional disclosure regarding such update before the hearing on the Supplemental Disclosure Document. Full-text copies of the Feb. 20 DCL Plan and Supplemental Disclosure Document are available for free at: http://bankrupt.com/misc/Tribune_Feb20DCLPlan.pdf http://bankrupt.com/misc/Tribune_Feb20DCLDS.pdf Blacklined copies of the DCL Plan and Supplemental Disclosure Document are available for free at: http://bankrupt.com/misc/Tribune_Feb20DCLPlan_blacklined.pdf http://bankrupt.com/misc/Tribune_Feb20DCLDS_blacklined.pdf Supplemental Disclosure Doc Hearing on March 23 Judge Carey scheduled for March 23, 2012, the hearing to consider approval of the Solicitation Procedures Motion, including approval of the Supplemental Disclosure Document. Parties have until March 9, 2012 to file any objections to the Solicitation Procedures Motion. About Tribune Co. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 08-13141) on Dec. 8, 2008. The Debtors proposed Sidley Austin LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North America LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to the Official Committee of Unsecured Creditors. AlixPartners LLP is the Committee's financial advisor. Landis Rath Moelis & Company serves as the Committee's investment banker. Thomas G. Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the Committee in connection with the lawsuit filed against former officers and shareholders for the 2007 LBO of Tribune. Protracted negotiations and mediation efforts and numerous proposed plans of reorganization filed by Tribune Co. and competing creditor groups have delayed Tribune's emergence from bankruptcy. Many of the disputes among creditors center on the 2007 leveraged buyout fraudulence conveyance claims, the resolution of which is a key issue in the bankruptcy case. The bankruptcy court has scheduled a May 16 hearing on Tribune's plan. Tribune CRO Don Liebentritt said it is possible the media company could emerge late in the third quarter of 2012. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TRIBUNE CO: Parties File Brief on Allocation Disputes ----------------------------------------------------- Tribune Company and other parties-in-interest in its bankruptcy case submitted to Judge Carey preliminary statements regarding allocation disputes. A. DCL Plan Proponents On behalf of the Debtors, James F. Conlan, Esq., at Sidley Austin LLP, in Chicago, Illinois, says the Debtors currently do not intend to take positions as to the merits of any of the Allocation Disputes. The Debtors believe the Allocation Disputes are essentially intercreditor disputes. He relates that the Allocation Disputes are being resolved in conjunction with confirmation of the Third Amended DCL Plan. The Debtors are, however, prepared to present evidence relevant to the adjudication of the Allocation Disputes concerning these matters: (A) Amount of the PHONES Notes Claims. The Debtors have information regarding "the Allowed amount of the PHONES Notes Claims" and are prepared to submit testimony regarding the bases for the calculations of both the low and high PHONES Notes Claims amounts set forth in the Recovery Chart referenced in the Allocation Disputes Order. The Debtors are also prepared to present evidence or testimony as to why the Debtors have used the low PHONES Notes Claims amount in their postpetition financial statements. Any such testimony would be presented by Brian Whittman of Alvarez & Marsal. (B) Other Parent Claims. The Debtors have relevant information regarding the history, nature, and amounts of the claims of Retirees and of the claims of other general unsecured creditors of Tribune that are included in the category of Other Parent Claims. Indeed, Wilmington Trust Company has served interrogatories on the Debtors seeking some of this information. In response to that discovery, the Debtors have indicated that they will provide responsive information and are prepared to present testimony regarding the amounts of those claims. The Debtors are also prepared to present testimony as to the history and nature of the claims included in the Other Parent Claims whose holders may not file Preliminary Statements or Opening Briefs. Any such testimony would be presented by Mr. Whittman. (C) Recovery Chart. It is likely that the Recovery Chart will be relevant, Mr. Conlan says. Because Mr. Whittman prepared the chart, the Debtors are prepared to present him as a witness to explain it and to answer any questions pertaining thereto. The Debtors reserve the right to submit a response brief and to present evidence and testimony responding to facts or issues raised in the Opening Briefs filed pursuant to the Allocation Disputes Order. The Official Committee of Unsecured Creditors asserts that neither the Article III Distributions nor the priority of distributions from the Creditors' Trust and the Litigation Trust must be adjusted for the distributions under the Plan to satisfy the applicable requirements of the Bankruptcy Code. The Creditors' Committee believes that the receipt by the holders of Other Parent Claims of initial distributions in percentage recoveries that is equal to or higher than those received by the Senior Noteholders does not result in unfair discrimination against the Senior Noteholders. In connection, the Creditors' Committee circulated to the parties a draft chart setting forth the financial effect of the PHONES Notes and EGI-TRB LLC Notes subordination and turnover provisions on initial distributions under the Plan. The Creditors' Committee expects to provide the parties with additional charts setting forth the effect of the Subordination Provisions on creditor recoveries base. In the event that the Parties agree to the validity and admissibility of the subordination scenario recovery charts, the Creditors' Committee would rely solely on those subordination scenario recovery charts for its position on the allocation disputes, and would not call any trial witnesses. Oaktree Capital Management, L.P., on behalf of certain investment funds and accounts it manages, asserts that the Swap Claim is entitled to the benefits of the subordination provisions in the PHONES Notes Indenture. Oaktree also believes that the beneficiaries of the subordination provisions of the PHONES Notes Indenture are entitled to receive postpetition interest prior to the Holders of PHONES Notes Claims receiving payment on their Claims. Oaktree intends to rely upon the testimony of (a) Brian Whittman; and (b) any witnesses that may be required to authenticate or admit into evidence the exhibits offered in support of these positions. Oaktree is represented by: Bruce Bennett, Esq. James O. Johnston, Esq. Joshua M. Mester, Esq. DEWEY & LEBOEUF LLP 333 S. Grand Ave., Suite 2600 Los Angeles, CA 90017 Tel: (231) 621-6000 E-mail: bbennett@dl.com jjohnston@deweyleboeuf.com jmester@dl.com B. Noteholders Aurelius Capital Management, LP, and Law Debenture Trust Company of New York, as successor indenture trustee under the March 19, 1996 Indenture; filed similar preliminary statements in connection with the Allocation Disputes. On behalf of Aurelius, Daniel H. Golden, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, avers that all of the consideration provided by the Senior Lenders, Bridge Lenders, and Settling Step Two Payees with respect to the Plan Settlement is subject to the subordination provisions of the PHONES Notes Indenture and the subordination agreement governing the EGI-TRB LLC Notes. Thus, all such consideration must be turned over by the holders of PHONES Notes and the EGI-TRB LLC Notes to the holders of "Senior Indebtedness" and "Senior Obligations," he asserts. Mr. Golden further notes that Other Parent Claims do not constitute "Senior Indebtedness," as defined by the PHONES Notes Indenture and the EGI-TRB Notes Subordination Agreement. Allowing Other Parent Claims to receive distributions under the Plan or from the Creditors' Trust or the Litigation Trust breaches the contractual rights of the Senior Noteholders, violates the Bankruptcy Code, or results in unfair discrimination against the Senior Noteholders, Mr. Golden asserts. Beneficiaries of the subordination provisions of the PHONES Notes Indenture and the EGI-TRB LLC Notes Subordination Agreement are not entitled to receive postpetition interest prior to the Holders of PHONES Notes Claims receiving payment in full in respect of their allowed prepetition Claims, Mr. Golden asserts. To the extent the prepetition Claims of the beneficiaries of the subordination provisions of the PHONES Notes Indenture and the Holders of PHONES Notes Claims are paid in full, any subsequent recoveries or distributions to such Claimants in respect of additional interest will be paid on a pro rata basis, he adds. Deutsche Bank Trust Company Americas, successor trustee under a March 1, 1992 indenture, a January 30, 1995 indenture and a January 1, 1997 indenture; David Kempner Capital Management LLC; and Brigade Capital Management, LLC, separately join in Law Debenture's preliminary statement. The joinders say they did not intend to call any witnesses during the Allocation Disputes Hearing. Wilmington Trust Company, in its capacity as successor indenture trustee for the PHONES Notes, asserts that the allowed amount of the PHONES Notes Claims should be $1,184,941,949, plus unpaid interest that accrued before the Petition Date. The PHONES Notes are senior in right of payment to the EGI-TRB LLC Notes, the Indenture Trustee insists. Counsel to WTC, Robert J. Stark, Esq., at Brown Rudnick LLP, in New York, asserts that each of the Senior Lenders, Bridge Lenders and Settling Step Two Payees is settling claims and causes of action that exist under Chapter 5 of the Bankruptcy Code. That being said, settlement proceeds from Chapter 5 avoidance actions are not subject to subordination under the PHONES Notes Indenture, he contends. Pending final adjudication of WTC's appeal from the Reconsideration Opinion, Article III Distributions should be reserved, he states. WTC reserves the right to amend, restate or otherwise supplement the positions taken herein. Wilmington Trust does not intend to call any trial witnesses at this time, but reserves the right to do so after receipt of the parties' preliminary statements, discovery responses, answers to interrogatories and briefing in connection with the Allocation Disputes. C. EGI-TRB Counsel to EGI-TRB LLC, David J. Bradford, Esq., at Jenner & Block LLP, in Chicago, Illinois, insists that the EGI-TRB Subordination Agreement does not apply to all of the consideration given with respect to the Plan Settlement and EGI- TRB should share in the Plan Settlement proceeds at least on a parity with other unsecured parent company creditors. More importantly, EGI-TRB's claims are subordinated only as to distributions of "assets of the Company," however, the Court already has held that the PHONES Notes are subordinated as to all distributions, regardless whether made from "assets of the Company" or another source, he points out. EGI-TRB will rely on Richard E. Mikels, at Mintz Levin Cohn Glovsky and Popeo, P.C., as expert witness and Mr. Whitmann or Dennis Twomey from Alvarez & Marsal. EGI-RB reserves the right to call additional witnesses responsive to witnesses identified by other parties. D. Barclays Barclays Bank PLC and Waterstone Capital Management LP, in their capacity as exchange claims holders, ask the Court that all claims arising from the PHONES Notes be allowed in the full face amount of the PHONES as set forth in the proof of claim of the PHONES Trustee. They also reserve the right to amend, modify or otherwise supplement this position statement. The Exchange Claims Holders do not intend to call any trial witnesses at this time, but reserve the right to do so after receipt of the other parties' position statements or briefs in connection with the Allocation Disputes. E. TM Retirees About 200 former employees and directors of The Times Mirror Company state that their claims constitute "Senior Indebtedness," or "Senior Obligations." The TM Retirees expect to call Susan P. Bell, formerly Director, Executive Compensation and Benefits of Times Mirror, as a witness with respect to the Allocation Disputes. The TM Retirees have also sought the production of documents from Aurelius, WTC, Law Debenture, EGI, the Debtors and the Creditors' Committee and reserve the right to identify and rely upon such other and further documents as may be produced during discovery. * * * Opening briefs and response briefs with respect to the Allocation Disputes are required to be filed on or before February 24, and March 2, 2012. A hearing on the Allocation Disputes will commence on March 5, 2012. About Tribune Co. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection (Bankr. D. Del. Lead Case No. 08-13141) on Dec. 8, 2008. The Debtors proposed Sidley Austin LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North America LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Chadbourne & Parke LLP and Landis Rath LLP serve as co-counsel to the Official Committee of Unsecured Creditors. AlixPartners LLP is the Committee's financial advisor. Landis Rath Moelis & Company serves as the Committee's investment banker. Thomas G. Macauley, Esq., at Zuckerman Spaeder LLP, in Wilmington, Delaware, represents the Committee in connection with the lawsuit filed against former officers and shareholders for the 2007 LBO of Tribune. Protracted negotiations and mediation efforts and numerous proposed plans of reorganization filed by Tribune Co. and competing creditor groups have delayed Tribune's emergence from bankruptcy. Many of the disputes among creditors center on the 2007 leveraged buyout fraudulence conveyance claims, the resolution of which is a key issue in the bankruptcy case. The bankruptcy court has scheduled a May 16 hearing on Tribune's plan. Tribune CRO Don Liebentritt said it is possible the media company could emerge late in the third quarter of 2012. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) UNISYS CORP: Fairpointe Capital Discloses 10.27% Equity Stake ------------------------------------------------------------- Fairpointe Capital LLC filed with the U.S. Securities and Exchange Commission an amended Schedule 13G disclosing that, as of Jan. 31, 2012, it beneficially owns 4,455,086 shares of common stock of Unisys Corporation representing 10.27% of the shares outstanding. As previously reported by the TCR on Feb. 14, 2012, Fairpointe disclosed beneficial ownership of 4,156,118 common shares. A full-text copy of the amended filing is available for free at: http://is.gd/nLj0HU About Unisys Corp. Based in Blue Bell, Pennsylvania, Unisys Corporation (NYSE: UIS) -- http://www.unisys.com/-- provides a portfolio of IT services, software, and technology that solves critical problems for clients. With more than 26,000 employees, Unisys serves commercial organizations and government agencies throughout the world. The Company's balance sheet at Dec. 31, 2011, showed $2.61 billion in total assets, $3.92 billion in total liabilities and a $1.31 billion total stockholders' deficit. * * * As reported by the Troubled Company Reporter on Feb. 24, 2011, Moody's Investors Service has affirmed Unisys' B1 corporate family rating and all other ratings, and also changed the rating outlook to positive from stable. This outlook change follows the announcement by Unisys of plans to issue mandatory convertible preferred stock, redeem secured notes, and tender for additional bonds which Moody' estimates will reduce secured debt by up to $390 million. Upon completion of the transactions, the loss given default assessments will be revised based on the remaining debt balances. In the May 5, 2011 edition of the TCR, Standard & Poor's Ratings Services raised its corporate credit rating on Blue Bell, Pa.- based Unisys Corp. to 'BB-' from 'B+', and removed the ratings from CreditWatch, where they were placed with positive implications on Feb. 22, 2011. "The upgrade reflects Unisys' improved financial profile following the recent debt redemptions," said Standard & Poor's credit analyst Martha Toll-Reed, "and adequate liquidity, which provides some capacity at the current rating for potential earnings volatility." "The ratings reflect our view that Unisys' improved financial profile and consistently positive annual free cash flow will provide sufficient cushion in the near term to mitigate the potential for ongoing revenue declines and operating performance volatility," added Ms. Toll- Reed. As reported by the TCR on Oct. 18, 2011, Fitch Ratings has affirmed and withdrawn the 'BB-' long-term Issuer Default Rating of Unisys Corporation. Fitch has decided to discontinue the rating, which is uncompensated. VEGAS INC: Files Schedules of Assets and Liabilities ---------------------------------------------------- Vegas Inc. filed with the U.S. Bankruptcy Court for the District of Eastern District of Michigan its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $167,855 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $120,937 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $194,046 ----------- ----------- TOTAL $167,855 $314,983 A copy of Vegas Inc.'s schedules is available for free at: http://bankrupt.com/misc/VEGAS_INC_sal.pdf Detroit-based Vegas Inc., aka Vegas Liquor, filed for Chapter 11 bankruptcy (Bankr. E.D. Mich. Case No. 12-40572) on Jan. 11, 2012. Judge Steven W. Rhodes presides over the case. Donald C. Darnell, Esq., at Darnell PLLC in Dexter, Michigan, serves as the Debtor's counsel. The petition was signed by Mark Thuwaini, president. WASTE2ENERGY HOLDINGS: Chapter 11 Trustee Taps Foreign Counsel -------------------------------------------------------------- Wayne P. Weitz, Chapter 11 Trustee for Waste2Energy Holdings, Inc., seeks to employ Appleby LLC as his special foreign counsel, nunc pro tunc to Jan. 25, 2012. As special foreign counsel, Appleby will provide legal advice and assist the Trustee with: (a) corporate governance issues relating to the Isle of Man subsidiaries; (b) potentially initiating a proceeding in the Isle of Man seeking recognition of the Chapter 11 cases and the Trustee; and (c) taking all other actions with respect to matters relating to the Isle of Man. The customary and proposed hourly rates to be charged by Appleby for the individuals expected to be directly involved in representing the Chapter 11 Trustee are: Partners/Senior Counsel GBP440 Senior Associates GBP350 Associates GBP265 Trainees GBP200 To the best of the Trustee's knowledge, Appleby does not represent or hold any interest adverse to the Debtor or its estate. About Waste2Energy Holdings Greenville, S.C.-based Waste2Energy Holdings, Inc. (Pink Sheets: WTEZ) -- http://www.waste2energy.com/-- is a "cleantech" technology company that designs, builds, installs and sells waste to energy plants that generate "Renewable Green Power" converting biomass or other solid waste streams traditionally destined for landfills into clean renewable energy. The Company's balance sheet at June 30, 2010, showed $3.4 million in total assets, $11.7 million in total liabilities, and a stockholders' deficit of $8.3 million. On Aug. 8, 2011, four creditors filed an involuntary Chapter 11 petition against Waste2Energy Holdings (Bankr. D. Del. Case No. 11-12504). Judge Kevin J. Carey presides over the case. The petitioning creditors, allegedly owed $3.2 million in the aggregate, are represented by Frederick B. Rosner, Esq., at The Rosner Law Group, LLC. On Sept. 21, 2011, the Court entered an order effectively converting the case from an involuntary to voluntary chapter 11 proceeding. On Oct. 4, 2011, Wayne P. Weitz was appointed Chapter 11 trustee. Cole, Schotz, Meisel, Forman & Leonard, P.A., is the Trustee's bankruptcy counsel. WASTE2ENERGY HOLDINGS: Cole Schotz OK'd as Ch.11 Trustee's Counsel ------------------------------------------------------------------ Wayne P. Weitz, Chapter 11 Trustee for Waste2Energy Holdings, Inc., obtained permission from the Bankruptcy Court to employ Cole, Schotz, Meisel, Forman & Leonard, P.A., as bankruptcy counsel. As the Chapter 11 Trustee's bankruptcy counsel, the firm, will among other things: a) advise the Trustee with respect to his rights and duties as Chapter 11 Trustee; b) appear on behalf of the Trustee in proceedings and hearings in the Court to represent and protect the interests of the Trustee and the Debtor's estate; c) assist in the Trustee's investigation of the acts, conducts, assets, liabilities and financial condition of the Debtor and any other matters relevant to the case or the formulation and negotiation of a plan of reorganization or liquidation; and d) prepare on behalf of the Trustee any necessary motions, applications, orders, reports, responses, statements of investigation and other legal papers, along with the Debtor's schedules and statement of financial affairs. Cole Schotz will charge for its legal services on an hourly basis in accordance with its ordinary and customary hourly rates. The firm will also seek reimbursement of actual and necessary out-of- pocket expenses. The current rates of Cole Schotz members, associates and paralegals are: Members and Special Counsel $340 to $775 per hour Associates $210 to $425 per hour Paralegals $160 to $240 per hour The current rates of Cole Schotz members, associates and paralegals expected to perform significant work in the case are: Laurence May, Member $700 per hour Jill B. Bienstock, Associate $275 per hour Therese Scheuer, Associate $285 per hour Pauline Ratkowiak, Paralegal $230 per hour Frances Pisano, Paralegal $240 per hour About Waste2Energy Holdings Greenville, S.C.-based Waste2Energy Holdings, Inc. (Pink Sheets: WTEZ) -- http://www.waste2energy.com/-- is a "cleantech" technology company that designs, builds, installs and sells waste to energy plants that generate "Renewable Green Power" converting biomass or other solid waste streams traditionally destined for landfills into clean renewable energy. The Company's balance sheet at June 30, 2010, showed $3.4 million in total assets, $11.7 million in total liabilities, and a stockholders' deficit of $8.3 million. On Aug. 8, 2011, four creditors filed an involuntary Chapter 11 petition against Waste2Energy Holdings (Bankr. D. Del. Case No. 11-12504). Judge Kevin J. Carey presides over the case. The petitioning creditors, allegedly owed $3.2 million in the aggregate, are represented by Frederick B. Rosner, Esq., at The Rosner Law Group, LLC. On Sept. 21, 2011, the Court entered an order effectively converting the case from an involuntary to voluntary chapter 11 proceeding. On Oct. 4, 2011, Wayne P. Weitz was appointed Chapter 11 trustee. Cole, Schotz, Meisel, Forman & Leonard, P.A., is the Trustee's bankruptcy counsel. WESTLAND PARCEL: Withdraws 7th Stipulation for Cash Collateral Use ------------------------------------------------------------------ Westland Parcel J Partners, LLC, notified on Feb. 3, 2012, the U.S. Bankruptcy Court for the Central District of California that it has withdrawn the seventh stipulation authorizing the use of cash collateral on an interim basis. As reported in the Troubled Company Reporter on Jan. 24, 2012, the Debtor won Court approval for continued access to cash collateral of Pacific Western Bank through Jan. 31, 2012. The Court's ruling came upon the Debtor's 7th stipulation with Pacific Western, through the bank's counsel, T. Courtney Dubar. About Westland Parcel J Partners Long Beach, California-based Westland Parcel J Partners, LLC, filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. Case No. 10-58987) on Nov. 15, 2010. Jeffrey S Shinbrot, Esq., at The Shinbrot Firm, assists the Debtor in its restructuring effort. Kallman & Co., LLC, serves as its certified public accountants. AG Commercial serves as its leasing broker. The Debtor estimated its assets and debts at $10 million to $50 million. Affiliate David William Neary (Bankr. C.D. Calif. Case No. 10- 39802) filed separate Chapter 11 petition on July 20, 2010. WINCOPIA FARMS: Has Until March 16 to Challenge Dismissal Bid ------------------------------------------------------------- Bankruptcy Judge David E. Rice signed off on a stipulation and consent order between Wincopia Farms LP and the U.S. Trustee for the District of Maryland, Baltimore Division, extending Wincopia's time to respond to the U.S. Trustee's Renewed Motion to Convert to Chapter 7 or Dismiss the Debtor's case. The Motion is premised on the Debtor's failure to pay $1,943.15 in quarterly fees owed to the U.S. Trustee and a failure to file monthly operating reports on a current basis. Pursuant to the Stipulation, Wincopia has made a substantial payment toward the quarterly fee arrearage and made a commitment that it would catch up on delinquent monthly operating reports through the month of December 2011, by Feb. 15, 2012. The U.S. Trustee has agreed to give the Debtor a 30-day extension of time within which to respond to the Motion such that any response would be due on or before March 19, 2012. A copy of the Stipulation and Consent Order dated Feb. 16 is available at http://is.gd/0Ms6aHfrom Leagle.com. Based in Laurel, Maryland, Wincopia Farms, L.P. -- http://wincopiafarmsinc.com/-- is an agricultural supplier. It filed for Chapter 11 bankruptcy (Bankr. D. Md. Case No. 07-15899) on June 28, 2007. Judge James F. Schneider presides over the case. Alan M. Grochal, Esq., at Tydings & Rosenberg LLP serves as the Debtor's counsel. In its petition, the Debtor estimated $1 million to $100 million in both assets and debts. WJO INC: Hearing on Continued Access to Cash Set for Feb. 29 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Eastern District of Pennsylvania has continued until Feb. 29, 2012, at 9:30 a.m., the hearing on WJO Inc.'s request for continued access to the cash collateral. As reported in the Troubled Company Reporter on Jan. 24, 2012, as adequate protection from diminution in value of the lender's collateral, the Debtor's prepetition lender is granted valid and perfected replacement liens in all of the Debtor's assets. About WJO Inc. Bristol, Pennsylvania-based WJO, Inc., operates six family practices located in Newtown, Bristol, Bensalem, Bustleton, South Philadelphia, and Bethlehem, Pennsylvania and consists of Board Certified Osteopathic Physicians specializing in Family Medicine. Prior to the petition date, and to allow the Company to restructure effectively, HyperOx Inc., HyperOx I, LP, HyperOx III, LP, and East Coast TMR, Inc., were merged into WJO. WJO filed for Chapter 11 bankruptcy protection (Bankr. E.D. Pa. Case No. 10-19894) on Nov. 15, 2010. The Debtor disclosed $19,923,802 in assets and $6,805,255 in liabilities as of the Chapter 11 filing. Holly Elizabeth Smith, Esq., and Thomas Daniel Bielli, Esq., at Ciardi Ciardi & Astin, P.C., serve as the Debtor's bankruptcy counsel. Pond Lehocky Stern Giordano serves as the Debtor's special counsel to represent it in worker's compensation proceedings pertaining to the Therapeutic Magnetic Resonance treatments. Patrick Yun serves as the Debtor's financial advisor. Attorneys at Keifer & Tsarouhis LLP serve as counsel to the official committee of unsecured creditors. ParenteBeard LLC serves as the Committee's accountant and financial advisor. The United States Trustee has appointed David Knowlton as patient care ombudsman in the case. The Ombudsman is represented in the case by Karen Lee Turner, Esq., at Eckert Seamans Cherin & Mellott, LLC, as counsel. Tristate Capital Bank, the cash collateral lender, is represented in the case by lawyers at Benesch Friedlander Coplan & Aronoff LLP. WJO INC: Re-engages Ciardi Ciardi as Reorganization Counsel ----------------------------------------------------------- WJO, Inc., asks the U.S. Bankruptcy Court for the Eastern District of Pennsylvania for permission to employ Ciardi Ciardi & Astin as counsel nunc pro tunc Jan. 16, 2012. Ciardi Ciardi was previously counsel for the Debtor. The firm withdrew as counsel and was replaced by O'Keily Ernst Bielli & Wallen, LLC. O'Keilly has withdrawn as counsel for the Debtor effective Jan. 19, 2012. The Debtor has re-engaged the services of Ciardi Ciardi as its counsel. To the best of the Debtor's knowledge, Ciardi Ciardi is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Albert A. Ciardi, III, Esq. Jennifer E. Cranston, Esq. Daniel S. Siedman, Esq. CIARDI CIARDI & ASTIN One Commerce Square, Suite 1930 2005 Market Street Philadelphia, PA 19103 Tel: (215) 557-3550 Fax: (215) 557-3551 E-mails: dsiedman@ciardilaw.com About WJO Inc. Bristol, Pennsylvania-based WJO, Inc., operates six family practices located in Newtown, Bristol, Bensalem, Bustleton, South Philadelphia, and Bethlehem, Pennsylvania and consists of Board Certified Osteopathic Physicians specializing in Family Medicine. Prior to the petition date, and to allow the Company to restructure effectively, HyperOx Inc., HyperOx I, LP, HyperOx III, LP, and East Coast TMR, Inc., were merged into WJO. WJO filed for Chapter 11 bankruptcy protection (Bankr. E.D. Pa. Case No. 10-19894) on Nov. 15, 2010. The Debtor disclosed $19,923,802 in assets and $6,805,255 in liabilities as of the Chapter 11 filing. Holly Elizabeth Smith, Esq., and Thomas Daniel Bielli, Esq., at Ciardi Ciardi & Astin, P.C., serve as the Debtor's bankruptcy counsel. Pond Lehocky Stern Giordano serves as the Debtor's special counsel to represent it in worker's compensation proceedings pertaining to the Therapeutic Magnetic Resonance treatments. Patrick Yun serves as the Debtor's financial advisor. Attorneys at Keifer & Tsarouhis LLP serve as counsel to the official committee of unsecured creditors. ParenteBeard LLC serves as the Committee's accountant and financial advisor. The United States Trustee has appointed David Knowlton as patient care ombudsman in the case. The Ombudsman is represented in the case by Karen Lee Turner, Esq., at Eckert Seamans Cherin & Mellott, LLC, as counsel. Tristate Capital Bank, the cash collateral lender, is represented in the case by lawyers at Benesch Friedlander Coplan & Aronoff LLP. WPCS INTERNATIONAL: First Wilshire Discloses 6.6% Equity Stake -------------------------------------------------------------- In a Schedule 13G filing with the U.S. Securities and Exchange Commission, First Wilshire Securities Management, Inc., disclosed that, as of Dec. 31, 2011, it beneficially owns 477,928 shares of common stock of WPCS International Inc. representing 6.6% of the shares outstanding. A full-text copy of the filing is available for free at http://is.gd/DYJOmq About WPCS International Exton, Pennsylvania-based WPCS International Incorporated provides design-build engineering services that focus on the implementation requirements of communications infrastructure. The Company provides its engineering capabilities including wireless communication, specialty construction and electrical power to the public services, healthcare, energy and corporate enterprise markets worldwide. The Company's balance sheet at Oct. 31, 2011, showed $51.88 million in total assets, $27.17 million in total liabilities and $24.70 million in total equity. As reported by the TCR on Dec. 8, 2011, WPCS International and its United Stated based subsidiaries, previously entered into a loan agreement, dated April 10, 2007, as extended, modified and amended several times, with Bank of America, N.A. The Company is seeking alternative debt financing and has conducted discussions with other senior lenders to replace the Loan Agreement. The Company may not be successful in obtaining alternative debt financing or additional financing sources may not be available on acceptable terms. If the Company is required to repay the Loan Agreement, the Company has sufficient working capital to repay the outstanding borrowings. YELLOWSTONE MOUNTAIN: 9th Cir. Affirms Rejection of Membership -------------------------------------------------------------- The U.S. Court of Appeals for the Ninth Circuit said the bankruptcy court did not violate the terms of Yellowstone Mountain Club LLC's Chapter1 11 plan when the lower court affirmed the Debtors' rejection of Robert Sumpter's resident membership agreement in the private ski and golf community in Big Sky, Montana. Mr. Sumpter contends that, under the terms of the Debtors' Second Amended Plan of Reorganization, the Debtors were obligated to assume his agreement. The Ninth Circuit, however, noted that the Plan expressly provided that all executory contracts were deemed rejected except those contracts that were (1) previously assumed by the Debtors pursuant to an order of the bankruptcy court; (2) the subject of a motion to assume filed by the Debtors; (3) assumed obligations on the Contract Schedule; or (4) assumed obligations listed in the Member Assumption Schedule. Mr. Sumpter's membership did not fall into any of these four categories. The Ninth Circuit said the rejection was an appropriate exercise of business judgment because Mr. Sumpter's membership agreement was non-standard, in that it relieved him of any obligation to pay dues in addition to other benefits. The appellate case is ROBERT SUMPTER, Appellant, v. YELLOWSTONE MOUNTAIN CLUB, LLC; CEW CH YMC ACQUISITION, LLC, Appellees, UNITED STATES TRUSTEE, GREAT FALLS, Trustee-Appellee, No. 10-36066 (9th Cir.). The appellate panel consists of Circuit Judges Mary M. Schroeder, Arthur Lawrence Alarcon, and Ronald M. Gould. A copy of the Ninth Circuit's Feb. 16, 2012 Memorandum is available at http://is.gd/d0kwd0from Leagle.com. * Moody's: Liquidity Stress Index Nears Record-Low -------------------------------------------------- Moody's Liquidity-Stress Index (LSI) is on pace to decline for the second consecutive month with a mid-February 4.0% reading placing it at a six-month low, according to the rating agency's latest SGL Monitor. "The declining Liquidity-Stress Index for the U.S. and Canada reflects both a decrease in the number of companies with the lowest SGL-4 rating as well as the favorable effects of modest economic growth and improved credit market conditions," said John Puchalla, Moody's Vice President -- Senior Credit Officer. "Companies are still able to proactively address liquidity issues." Speculative-grade liquidity (SGL) rating downgrades continue to outnumber upgrades, although the gap is small and the rate of downgrades is lower than in the second half of 2011, says Moody's. An SGL rating is an assessment of a speculative-grade company's intrinsic liquidity position over the coming 12-15 months. Moody's Covenant Stress Index (MCSI) also appeared to decline during the first half of February, with the low reading of 2.8% ? from 2.9% at the end of January ? indicating covenant headroom remains manageable for most companies. Like the LSI, the MCSI remains near historic lows. It's above the near-record low of 1.8% posted in July and August 2011 but far below the March 2009 record high of 17.3%. The index measures the extent to which speculative-grade companies are likely to default or have already defaulted on covenants, and rises when covenant cushion appears to decrease. * Recent Small-Dollar & Individual Chapter 11 Filings ----------------------------------------------------- In Re Terence Quinn O'Neil aka Terry O'Neil Bankr. D. Conn. Case No. 12-50192 Chapter 11 Petition filed February 2, 2012 filed pro se In Re Tecton Corporation Bankr. M.D. Fla. Case No. 12-01564 Chapter 11 Petition filed February 2, 2012 See http://bankrupt.com/misc/flmb12-01564.pdf represented by: Diane J. Harrison, Esq. E-Mail: diane@harrisonlawpa.com In Re Ben Withers, Inc. Bankr. N.D. Fla. Case No. 12-40051 Chapter 11 Petition filed February 2, 2012 See http://bankrupt.com/misc/flnb12-40051.pdf represented by: Robert C. Bruner, Esq. E-Mail: RobertCBruner@hotmail.com In Re Vienna Town Square, LLC Bankr. E.D. Mich. Case No. 12-42274 Chapter 11 Petition filed February 2, 2012 See http://bankrupt.com/misc/mieb12-42274p.pdf See http://bankrupt.com/misc/mieb12-42274c.pdf represented by: Elias Xenos, Esq. E-Mail: etx@XenosLawFirm.Com In Re Margate Bachi, LLC Bankr. N.D. Texas Case No. 12-40602 Chapter 11 Petition filed February 2, 2012 See http://bankrupt.com/misc/txnb12-40602.pdf represented by: Lanny E. Perkins, Esq. E-Mail: lperkinsfilings@yahoo.com In Re Whispering Pines Cemetery, LLC Bankr. S.D. Ala. Case No. 12-00369 Chapter 11 Petition filed February 3, 2012 See http://bankrupt.com/misc/alsb12-00369.pdf represented by: Michael B. Smith, Esq. E-Mail: smi067@aol.com In Re Woodridge Holdings, Inc. dba Jackson Moving and Storage Bankr. N.D. Ill. Case No. 12-03905 Chapter 11 Petition filed February 3, 2012 See http://bankrupt.com/misc/ilnb12-03905.pdf represented by: Joel A. Schechter, Esq. Law Offices Of Joel Schechter E-Mail: joelschechter@covad.net In Re 14 Emerson Street LLC Bankr. D. Mass. Case No. 12-10882 Chapter 11 Petition filed February 3, 2012 filed pro se See http://bankrupt.com/misc/mab12-10882.pdf In Re The Game Room Home Store, Inc. Bankr. E.D. N.C. Case No. 12-00902 Chapter 11 Petition filed February 3, 2012 See http://bankrupt.com/misc/nceb12-00902.pdf represented by: J.M. Cook, Esq. E-Mail: J.M.Cook@jmcookesq.com In Re Triple J Communications LLC Bankr. N.D. Ohio Case No. 12-30345 Chapter 11 Petition filed February 3, 2012 See http://bankrupt.com/misc/ohnb12-30345.pdf represented by: Randy Lee Reeves, Esq. E-Mail: ecf@reeveslpa.com In Re J.E.D. Services, Inc. Bankr. W.D. Pa. Case No. 12-20526 Chapter 11 Petition filed February 3, 2012 See http://bankrupt.com/misc/pawb12-20526.pdf represented by: Jason J. Mazzei, Esq. Mazzei & Associates E-Mail: ecf@debt-be-gone.com In Re Alfred Velarde Bankr. E.D. Va. Case No. 12-10703 Chapter 11 Petition filed February 4, 2012 In Re Ayami Fortunes, LLC Bankr. C.D. Calif. Case No. 12-12885 Chapter 11 Petition filed February 5, 2012 See http://bankrupt.com/misc/cacb12-12885.pdf represented by: Paul Mammarella, Esq. Law Office of Paul Mammarella E-Mail: mlaw714@live.com In Re Victor Garcia Bankr. C.D. Calif. Case No. 12-14150 Chapter 11 Petition filed February 5, 2012 In Re Antonio Martinez Bankr. D. Ariz. Case No. 12-02022 Chapter 11 Petition filed February 6, 2012 In Re Grant Griffiths Bankr. D. Ariz. Case No. 12-02064 Chapter 11 Petition filed February 6, 2012 In Re CDG Materials, Inc. Bankr. C.D. Calif. Case No. 12-12935 Chapter 11 Petition filed February 6, 2012 See http://bankrupt.com/misc/cacb12-12935.pdf represented by: Michael Jay Berger, Esq. E-Mail: michael.berger@bankruptcypower.com In Re Goldenpark, LLC Bankr. C.D. Calif. Case No. 12-14292 Chapter 11 Petition filed February 6, 2012 See http://bankrupt.com/misc/cacb12-14292.pdf represented by: Michael Jay Berger, Esq. E-Mail: michael.berger@bankruptcypower.com In Re Willie Anderson Bankr. C.D. Calif. Case No. 12-14189 Chapter 11 Petition filed February 6, 2012 In Re Jackie Lopez Bankr. N.D. Calif. Case No. 12-41085 Chapter 11 Petition filed February 6, 2012 In Re Joel Wismer Bankr. S.D. Calif. Case No. 12-01583 Chapter 11 Petition filed February 6, 2012 In Re Southwest Mobility, Inc. dba Scooter Mobility Center Bankr. M.D. Fla. Case No. 12-00649 Chapter 11 Petition filed February 6, 2012 See http://bankrupt.com/misc/flmb12-00649.pdf represented by: Jason A. Burgess, Esq. The Law Offices of Jason A. Burgess, LLC E-Mail: jason@jasonaburgess.com In Re Raymond Parker Bankr. M.D. Ga. Case No. 12-10178 Chapter 11 Petition filed February 6, 2012 In Re 21ST Century Enterprises, Inc. Bankr. N.D. Ga. Case No. 12-53212 Chapter 11 Petition filed February 6, 2012 See http://bankrupt.com/misc/ganb12-53212.pdf represented by: David Jean Couch, Esq. Peachtree Law Group, P.A. E-Mail: djcouch@djclaw.net In Re American Floor Consultants & Installations Incorporated Bankr. N.D. Ga. Case No. 12-53016 Chapter 11 Petition filed February 6, 2012 See http://bankrupt.com/misc/ganb12-53016.pdf represented by: Melvin Robinson, Esq. In Re Estate of Niki Julias Tranakos Bankr. N.D. Ga. Case No. 12-53063 Chapter 11 Petition filed February 6, 2012 filed pro se In Re James Jones Bankr. N.D. Ga. Case No. 12-40347 Chapter 11 Petition filed February 6, 2012 In Re Jerry Barron Bankr. N.D. Ga. Case No. 12-20406 Chapter 11 Petition filed February 6, 2012 In Re Larry Franklin Bankr. N.D. Ga. Case No. 12-20404 Chapter 11 Petition filed February 6, 2012 In Re Masharn Wilson Bankr. N.D. Ga. Case No. 12-52850 Chapter 11 Petition filed February 6, 2012 In Re Midtown Dental Services, Inc. Bankr. N.D. Ga. Case No. 12-53210 Chapter 11 Petition filed February 6, 2012 See http://bankrupt.com/misc/ganb12-53210.pdf represented by: Sims W. Gordon, Jr., Esq. The Gordon Law Firm PC E-Mail: atllaw06@gordonlawpc.com In Re Valtierra Family Trust Bankr. N.D. Ga. Case No. 12-52912 Chapter 11 Petition filed February 6, 2012 filed pro se In Re George Joyner Bankr. S.D. Ga. Case No. 12-40264 Chapter 11 Petition filed February 6, 2012 In Re Seung Kim Bankr. S.D. Ga. Case No. 12-20140 Chapter 11 Petition filed February 6, 2012 In Re ALE Enterprises, LLC dba House of Tire & Wheels dba Used Tire Depot dba HTW Motorsports Bankr. E.D. La. Case No. 12-10325 Chapter 11 Petition filed February 6, 2012 See http://bankrupt.com/misc/laeb12-10325p.pdf See http://bankrupt.com/misc/laeb12-10325c.pdf represented by: Darryl T. Landwehr, Esq. E-Mail: dtlandwehr@aol.com In Re Michael DeCroteau Bankr. D. Mass. Case No. 12-10946 Chapter 11 Petition filed February 6, 2012 In Re Margaret Charles Bankr. D. Nev. Case No. 12-11320 Chapter 11 Petition filed February 6, 2012 In Re Thurman Kemp Bankr. D. Nev. Case No. 12-11311 Chapter 11 Petition filed February 6, 2012 In Re D.A.M. Realty Corp Bankr. D. N.J. Case No. 12-12871 Chapter 11 Petition filed February 6, 2012 See http://bankrupt.com/misc/njb12-12871.pdf represented by: Barry W. Frost, Esq. Teich Groh E-Mail: bfrost@teichgroh.com In Re Rite Ride Transportation Corp. Bankr. D. N.J. Case No. 12-12863 Chapter 11 Petition filed February 6, 2012 See http://bankrupt.com/misc/njb12-12863.pdf represented by: Leonard S. Singer, Esq. Zazella & Singer E-Mail: zandsattys@aol.com In Re J.B. Flex, Inc. dba Take 5 Bar And Grill Bankr. S.D. Ohio Case No. 12-10526 Chapter 11 Petition filed February 6, 2012 See http://bankrupt.com/misc/ohsb12-10526.pdf represented by: Philomena S Ashdown, Esq. E-Mail: psashdown@strausstroy.com In Re Domenico Centofanti Bankr. E.D. Pa. Case No. 12-11076 Chapter 11 Petition filed February 6, 2012 In Re Gemini Restaurant Group, Inc. Bankr. E.D. Pa. Case No. 12-11059 Chapter 11 Petition filed February 6, 2012 See http://bankrupt.com/misc/paeb12-11059.pdf represented by: Jon M. Adelstein, Esq. E-Mail: jma@tradenet.net In Re Joe Grasso Bankr. E.D. Pa. Case No. 12-11063 Chapter 11 Petition filed February 6, 2012 In Re Edward Shearer Bankr. W.D. Pa. Case No. 12-70102 Chapter 11 Petition filed February 6, 2012 In Re Hixenbaugh Convalescent Home, Inc. Bankr. W.D. Pa. Case No. 12-20558 Chapter 11 Petition filed February 6, 2012 See http://bankrupt.com/misc/pawb12-20558p.pdf See http://bankrupt.com/misc/pawb12-20558c.pdf represented by: Donald R. Calaiaro, Esq. Calaiaro & Corbett, P.C. E-Mail: dcalaiaro@calaiarocorbett.com In Re DET Management, LLC Bankr. E.D. Texas Case No. 12-40302 Chapter 11 Petition filed February 6, 2012 See http://bankrupt.com/misc/txeb12-40302.pdf represented by: Eric A. Liepins, Esq. E-Mail: eric@ealpc.com In Re Aulakh & Randhawa Investments, Inc. Bankr. N.D. Texas Case No. 12-40771 Chapter 11 Petition filed February 6, 2012 See http://bankrupt.com/misc/txnb12-40771.pdf represented by: Eric A. Liepins, Esq. Eric A. Liepins, P.C. E-Mail: eric@ealpc.com In Re Dream Music Productions, LLC dba Dreamworld Music, LLC Bankr. N.D. Texas Case No. 12-40760 Chapter 11 Petition filed February 6, 2012 See http://bankrupt.com/misc/txnb12-40760.pdf represented by: Eric A. Liepins, Esq. Eric A. Liepins, P.C. E-Mail: eric@ealpc.com In Re G & M Mortgage Solutions, LLC Bankr. N.D. Texas Case No. 12-40788 Chapter 11 Petition filed February 6, 2012 See http://bankrupt.com/misc/txnb12-40788.pdf represented by: Eric A. Liepins, Esq. Eric A. Liepins, P.C. E-Mail: eric@ealpc.com In Re Mark Rodriguez Bankr. N.D. Texas Case No. 12-40694 Chapter 11 Petition filed February 6, 2012 In Re Prabhjot, Inc. dba Americas Best Value Inn Bankr. N.D. Texas Case No. 12-10037 Chapter 11 Petition filed February 6, 2012 See http://bankrupt.com/misc/txnb12-10037.pdf represented by: Charles Dick Harris, Esq. Law Office of Dick Harris, PC E-Mail: dharris_law_firm@swbell.net In Re Abhijot, Inc. dba Americas Best Value Inn Bankr. N.D. Texas Case No. 12-10038 Chapter 11 Petition filed February 6, 2012 See http://bankrupt.com/misc/txnb12-10038.pdf represented by: Charles Dick Harris, Esq. Law Office of Dick Harris, PC E-Mail: dharris_law_firm@swbell.net In Re Olga Ulloa Bankr. N.D. Texas Case No. 12-30756 Chapter 11 Petition filed February 6, 2012 In Re DLM of Houston Investment Group, L.L.C. Bankr. S.D. Texas Case No. 12-31052 Chapter 11 Petition filed February 6, 2012 See http://bankrupt.com/misc/txsb12-31052.pdf represented by: Thomas Baker Greene, III, Esq. Law Office of Thomas B. Greene III E-Mail: tbgreeneiii@msn.com In Re Preferred Lone Star Properties, LLC Bankr. S.D. Texas Case No. 12-80069 Chapter 11 Petition filed February 6, 2012 See http://bankrupt.com/misc/txsb12-80069.pdf represented by: Kimberly Anne Bartley, Esq. Waldron & Schneider, L.L.P. E-Mail: kbartley@ws-law.com In Re Richard Wilkinson Bankr. S.D. Texas Case No. 12-30936 Chapter 11 Petition filed February 6, 2012 In Re Timothy Zastrow Bankr. W.D. Wis. Case No. 12-10596 Chapter 11 Petition filed February 6, 2012 ********* 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 2012. 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 ***