TCR_Public/120317.mbx          T R O U B L E D   C O M P A N Y   R E P O R T E R

             Saturday, March 17, 2012, Vol. 16, No. 76

                            Headlines

ALEXANDER GALLO: Ends December With $2.65-Mil. Cash
AMERICAN AIRLINES: Has $234 Million Net Loss in January
AMERICAN LASER: Ends December With $2.23 Million Cash
BLOCKBUSTER INC: Debtor Had $37.3 Million Cash at Dec. 31
BUFFETS INC: Projects $575-Mil. in Disbursements in 6.5 Months

CARITAS HEALTH: Had $18.84 Million Cash at Dec. 31
EMIVEST AEROSPACE: Posts $445,100 Net Loss in December 2011
EVERGREEN SOLAR: Has $161.57MM Net Loss in 4 Weeks Ended Dec. 31
FRANCISCAN COMMUNITIES: Has $433,000 Net Loss in December 2011
GSC GROUP: Ends December With $14.7 Million Cash

HOSTESS BRANDS: Reports $1.78 Million Operating Loss in January
HUDSON HEALTHCARE: Ends December 2011 With $271,400 Cash
HUSSEY COPPER: Debtor Has $2-Mil. Profit in November





                            *********


ALEXANDER GALLO: Ends December With $2.65-Mil. Cash
---------------------------------------------------
AGH Liquidating LLC had total receipts of $50,600 and
disbursements totaling $3.00 million during the month of
December 2011.  As a result it ended the month with $2.65 million
cash.

A copy of the operating report is available for free at:

           http://bankrupt.com/misc/AGH_Dec2011_MOR.pdf

                      About Alexander Gallo

Marietta, Georgia-based Alexander Gallo Holdings LLC --
http://www.alexandergalloholdings.com-- is the largest full
service, IT-enabled court reporting and litigation support
services company in the United States.  AGH offers court
reporting, litigation support, trial software and other similar
services and has the only true national footprint in its market,
with roughly 55 offices located throughout the United States, and
a preferred provider network which serves as an extension of
Alexander Gallo's geographic reach.  Founded in 1999 by Alexander
J. Gallo, a former court reporter, AGH has made 18 acquisitions
since 2003.  Mr. Gallo has remained as CEO.

AGH, along with affiliates, filed for Chapter 11 protection
(Bankr. S.D.N.Y. Lead Case No. 11-14220) on Sept. 7, 2011.
Alexander Gallo will sell the business via 11 U.S.C. Sec. 363 to
Bayside Capital Inc., which had acquired $22 million in second-
lien debt.  The price wasn't disclosed.

Alexander Gallo disclosed assets of $208 million and debt totaling
$258 million as of June 30, 2011.  Liabilities include $47 million
on a first-lien revolving credit and term loan where Wells Fargo
Bank NA is agent.  In addition to the second-lien debt held by
Bayside, there is $33 million in junior unsecured subordinated
notes owing to Harvest Equity Partners LLC plus another
$148 million in junior unsecured subordinated notes owing to
insider Gallo Holdings LLC.  As reported in the Troubled Company
Reporter on Nov. 1, 2011, the Alexander Gallo disclosed
$41,981,048 in assets and $259,153,046 in liabilities as of the
Chapter 11 filing.

Bayside is providing $20 million in financing for the Chapter 11
effort.  The new loan will have a first priority lien on
unencumbered assets and a lien behind the first-lien debt.

Bankruptcy Judge Allan J. Gropper presides over the case.  Thomas
R. Califano, Esq., Jeremy R. Johnson, Esq., Esq., and Daniel G.
Egan, Esq., at DLA Piper LLP (US), in New York, serve as the
Debtors' general counsel.  Squire, Sanders & Demsey (US) LLP
serves as the Debtor's corporate counsel.  The Debtors' financial
advisor is Gordian Group, LLC.  Marc L. Pfefferle, a partner at
Carl Marks Advisory Group LLC, serves as the Debtors' chief
restructuring advisor.  Kurtzman Carson Consultants LLC serves as
the Debtor's claims agent.  KPMG LLP serves as their auditors to
provide auditing, tax compliance and tax consulting services.

In December 2011, an affiliate of Bayside Capital, Inc., completed
the acquisition of Alexander Gallo's assets.  The Debtor was
renamed to AGH Liquidating, LLC following the sale.


AMERICAN AIRLINES: Has $234 Million Net Loss in January
-------------------------------------------------------

                    AMR Corporation, et al.
               Condensed Consolidated Balance Sheet
                     As of January 31, 2012

ASSETS
Current Assets
Cash                                              $347,000,000
Short-term investments                           3,793,000,000
Restricted cash and short-term investments         768,000,000
Receivables, net                                 1,050,000,000
Inventories, net                                   604,000,000
Fuel derivative contracts                          108,000,000
Other current assets                               357,000,000
                                             ------------------
                                                  7,027,000,000
Equipment and property
Flight equipment, net                           11,031,000,000
Other equipment and property, net                2,123,000,000
Purchase deposits for flight equipment             735,000,000
                                             ------------------
                                                 13,889,000,000
Equipment and property under capital leases
Flight equipment, net                              320,000,000
Other equipment and property, net                   71,000,000
                                             ------------------
                                                    391,000,000

International slots and route authorities           708,000,000
Domestic slots and airport operating and gate
lease rights, less accumulated amortization, net   183,000,000
Other assets                                      1,931,000,000
                                             ------------------
TOTAL ASSETS                                     $24,129,000,000
                                             ==================

Liabilities and stockholders' equity (deficit)
Current liabilities
Accounts payable                                $1,124,000,000
Accrued liabilities                              1,881,000,000
Air traffic liability                            4,326,000,000
Current maturities of long-term debt             1,485,000,000
Current obligations under capital leases            38,000,000
                                             ------------------
Total current liabilities                        8,854,000,000

Long-term debt, less current maturities          6,625,000,000
Obligations under capital leases, less
current obligations                                289,000,000
Pension and postretirement benefits              9,249,000,000
Other liabilities, deferred gains and deferred
credits                                          1,582,000,000

Liabilities subject to compromise                 4,839,000,000

Stockholders' Equity
Preferred stock                                              -
Common stock                                       341,000,000
Additional paid-in capital                       4,466,000,000
Treasury stock                                    (367,000,000)
Accumulated other comprehensive income (loss)   (3,929,000,000)
Accumulated deficit                             (7,820,000,000)
                                             ------------------
                                                 (7,309,000,000)
                                             ------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY      $24,129,000,000
                                             ==================

                     AMR Corporation, et al.
                Consolidated Statement of Operations
                 Month Ended January 31, 2012

Revenues
Passenger - American Airlines                   $1,543,000,000
          - Regional Affiliates                     218,000,000
Cargo                                               50,000,000
Other revenues                                     221,000,000
                                             ------------------
Total operating revenues                         2,032,000,000

Expenses
Aircraft fuel                                      704,000,000
Wages, salaries and benefits                       601,000,000
Other rentals and landing fees                     121,000,000
Maintenance, materials and repairs                 106,000,000
Depreciation and amortization                       87,000,000
Commissions, booking fees and credit card expense   99,000,000
Aircraft rentals                                    47,000,000
Food service                                        42,000,000
Other operating expenses                           230,000,000
                                             ------------------
                                                  2,037,000,000
                                             ------------------
Operating income (loss)                              (5,000,000)

Other income (expense)
Interest income                                      2,000,000
Interest expense                                   (62,000,000)
Interest capitalized                                 4,000,000
Miscellaneous - net                                 (3,000,000)
                                             ------------------
                                                    (59,000,000)
                                            ------------------
Income (loss) before reorganization items           (64,000,000)

Reorganization items, net                          (170,000,000)
                                             ------------------
Income (loss) before income taxes                  (234,000,000)
Income tax                                                    -
                                             ------------------
Net Income (Loss)                                 ($234,000,000)
                                             ==================

                     AMR Corporation, et al.
                Condensed Consolidated Statement of Cash Flows
                    Month Ended January 31, 2012

Net cash provided by (used for) Operating
Activities                                        $331,000,000

Cash flow from investing activities:
Capital expenditures, including aircraft lease
deposits                                           (52,000,000)
Net (increase) decrease in short-term investments  (75,000,000)
Net (increase) decrease in restricted cash and
short-term investments                             (30,000,000)
Proceeds from sale of equipment and property                 -
                                             ------------------
Net cash used for investing activities            (157,000,000)

Cash flow from financing activities:
Payments on long-term debt and capital lease
obligations                                       (110,000,000)
Proceeds from:
Issuance of debt                                             -
Sale leaseback transactions                                  -
Other                                                        -
                                             ------------------
                                                   (110,000,000)
                                             ------------------
Net increase (decrease) in cash                      64,000,000
Cash at beginning of period                         283,000,000
                                             ------------------
Cash at end of period                              $347,000,000
                                             ==================

                      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 serve as counsel to the
Official Committee of Unsecured Creditors in AMR's chapter 11
proceedings.  Togut, Segal & Segal LLP is the co-counsel for
conflicts and other matters; Moelis & Company LLC is the
investment banker, and Mesirow Financial Consulting, LLC, is the
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 LASER: Ends December With $2.23 Million Cash
-----------------------------------------------------
ALC Holdings LLC disclosed that it had total cash receipts of
$3.69 million and disbursements of $8.86 million in the period
Dec. 8 to 31, 2011.  Cash at the end of the month was
$2.23 million.

A copy of the operating report is available at:

           http://bankrupt.com/misc/ALC_Dec2011_MOR.pdf

                        About ALC Holdings

Farmington Hills, Michigan-based ALC Holdings LLC dba American
Laser Centers, and American Laser Skincare, provides laser hair
removal treatments.

The Company and its affiliates filed for Chapter 11 protection
(Bankr. D. Del. Lead Case No. 11-13853) on Dec. 8, 2011.
Bankruptcy Judge Mary F. Walrath presides over the case.  Landis
Rath & Cobb LLP represents the Debtors in their restructuring
efforts.  BMC Group Inc. serves as claims agent; SSG Capital
Advisors, LLC serves as financial advisors; and Traverse, LLC
serves as restructuring crisis manager.   MBC Consulting and
Melanie B. Cox serve as interim chief executive officer.  Qorval
and Eric Glassman serve as restructuring consultant.

The Debtors disclosed total assets of $80.4 million and total
liabilities including $40.3 million owing on a first-lien debt,
$51 million in subordinated notes, and $17.9 million is owing to
trade suppliers, as of Oct. 31, 2011.  American Laser Centers of
California LLC disclosed $20,988,454 in assets and $99,951,866 in
liabilities as of the Chapter 11 filing.  ALC Holdings LLC
disclosed $14,662 in assets and $93,744,094 in liabilities.

The Official Committee of Unsecured Creditors has tapped Herrick,
Feinstein LLP as bankruptcy counsel; Ashby & Geddes, P.A. as
Delaware counsel; and J.H. Cohn LLP as its financial advisor.

American Laser Centers on Feb. 6, 2012, disclosed that it has
completed a sale of substantially all of its assets to private
equity investment firm Versa Capital Management, LLC.  The company
received Court approval of the sale on Jan. 31.  Private equity
lender Versa Capital is paying $39.5 million.  A planned auction
failed to turn up additional bids.


BLOCKBUSTER INC: Debtor Had $37.3 Million Cash at Dec. 31
---------------------------------------------------------
BB Liquidating Inc., formerly Blockbuster Inc., prior to the
bankruptcy sale of its assets, disclosed a net loss of $400,000 on
$0 revenue in December 2011.  BB disclosed $37.3 million in cash
at Dec. 31, 2011.  At the end of the month, the Debtor had
$44.8 million in assets and $1.356 billion in liabilities, of
which $1.352 billion is subject to compromise.

A copy of the operating report filed with the Bankruptcy Court is
available for free at:

        http://bankrupt.com/misc/Blockbuster_MOR_Dec2011.pdf

                    About Blockbuster Inc.

Blockbuster Inc., the movie rental chain with a library of
more than 125,000 titles, along with 12 U.S. affiliates,
initiated Chapter 11 bankruptcy proceedings with a pre-arranged
reorganization plan in Manhattan (Bankr. S.D.N.Y. Case No.
10-14997) on Sept. 23, 2010.  It disclosed assets of $1 billion
and debts of $1.4 billion at the time of the filing.

Martin A. Sosland, Esq., and Stephen Karotkin, Esq., at Weil,
Gotshal & Manges, serve as counsel to the U.S. Debtors.
Rothschild Inc. is the financial advisor.  Alvarez & Marsal is the
restructuring advisor with A&M managing director Jeffery J.
Stegenga as chief restructuring officer.  Kurtzman Carson
Consultants LLC is the claims and notice agent.  The Official
Committee of Unsecured Creditors retained Cooley LLP as its
counsel.

In April 2011, Blockbuster conducted a bankruptcy court-sanctioned
auction for all the assets.  Dish Network Corp. won with an offer
having a gross value of $320 million.  The Debtor was renamed to
BB Liquidating Inc. following closing of the sale.


BUFFETS INC: Projects $575-Mil. in Disbursements in 6.5 Months
--------------------------------------------------------------
Buffets Inc. filed with the bankruptcy court its initial operating
report, which shows a 26-week cash flow forecast.  The Debtor
projects that for the 26-week ended July 25, 2012, cash receipts
will total $610 million while operating disbursements will total
$574.8 million.  During the period, it expects to pay a total of
$16.8 million in professional fees.

A copy of the document is available free of charge at:

       http://bankrupt.com/misc/Buffets_Forecast_Jul2012.pdf


                        About Buffets Inc.

Buffets Inc., the nation's largest steak-buffet restaurant
company, operates 494 restaurants in 38 states, comprised of 483
steak-buffet restaurants and 11 Tahoe Joe's Famous Steakhouse(R)
restaurants, and franchises 3 steak-buffet restaurants in two
states. The restaurants are principally operated under the Old
Country Buffet(R), HomeTown(R) Buffet, Ryan's(R) and Fire
Mountain(R) brands.  Buffets employs 28,000 team members and
serves 140 million customers annually.

Buffets Inc. and all of its subsidiaries filed Chapter 11
petitions (Bankr. D. Del. Lead Case No. 12-10237) on Jan. 18,
2012, after it reached a restructuring support agreement with 83%
of its lenders to eliminate virtually all of the Company's roughly
$245 million of outstanding debt.  The Debtors are seeking to
reject leases for 83 underperforming restaurants.

Buffets had 626 restaurants when it began its prior bankruptcy
case (Bankr. D. Del. Case Nos. 08-10141 to 08-10158).  It emerged
from bankruptcy in April 2009.

Higher gasoline and energy costs, along with a decline in guest
count, have hampered the Debtors' ability to service their long-
term debt and caused a liquidity strain, forcing the Company to
return to Chapter 11 bankruptcy.

In the new Chapter 11 case, Buffets Inc.'s legal advisors are
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Young, Conaway,
Stargatt & Taylor, LLP.  The Company's financial advisor is
Moelis, Inc.  Epiq Bankruptcy Solutions LLC serves as claims,
noticing and balloting agent.

An ad hoc committee of secured lenders is represented by Willkie
Far & Gallagher LLP and Blank Rome LLP as counsel and Conway, Del
Genio, Gries & Co. as financial advisors.  Credit Suisse, as DIP
Agent and Prepetition First Lien Agent, is represented by Skadden
Arps Slate Meagher & Flom as counsel.

The U.S. Trustee has appointed a 5-member Official Committee of
Unsecured Creditors in the Debtors' cases.


CARITAS HEALTH: Had $18.84 Million Cash at Dec. 31
--------------------------------------------------
Caritas Health Care Inc. at Dec. 31, 2011, had cash of
$18.7 million and ended the month with an additional $126,900.
Cash sales of $410,800 during the month were able to cover
$283,900 in disbursements, including $71,300 in professional fees.

A copy of the document is available for free at:

http://bankrupt.com/misc/Caritas_MOR_Dec2011.pdf

                    About Caritas Health Care

Caritas Health Care Inc. was the owner of Mary Immaculate Hospital
and St. John's Queens Hospital.  Caritas, created by Wyckoff
Heights Medical Center, purchased the two hospitals in a
bankruptcy sale in early 2007 from St. Vincent Catholic Medical
Centers of New York.  St. John's has 227 generate acute-care beds
while Mary Immaculate has 189.

Caritas Health Care, Inc., and eight of its affiliates sought
chapter 11 protection (Bankr. E.D.N.Y., Case No. 09-40901) on
Feb. 6, 2009.  Jeffrey W. Levitan, Esq., and Adam T. Berkowitz,
Esq., at Proskauer Rose, LLP, represent the Debtors.  Martin G.
Bunin, Esq., and Craig E. Freeman, Esq., at Alston & Bird LLP,
represent the official committee of unsecured creditors.

Caritas sold the hospitals to Joshua Guttman in November 2009 for
$17.7 million.

Caritas filed a proposed Chapter 11 liquidating plan after the
sales of substantially all assets were completed.  Under the plan,
holders of unsecured creditors are expected to recover between 1%
and 3%.  Holders of the existing stock won't receive anything.
The plan has yet to be confirmed by the bankruptcy court.


EMIVEST AEROSPACE: Posts $445,100 Net Loss in December 2011
-----------------------------------------------------------
Emivest Aerospace Corp. had a net loss of $445,100 on $0 revenue
during the month ended Dec. 31, 2011.  Net loss since the Petition
Date has reached $84.4 million.

Emivest had $106,300 in cash at the start of the month and at
month's end had $72,171 after administrative expenses of $37,300.
Professional fees during the period were only $39,800, raising
total fees paid since the Chapter 11 filing to $3.50 million.  As
of Dec. 31, Emivest had total assets of $291,700 and total
liabilities of $82.7 million.

A copy of the operating report is available at:

          http://bankrupt.com/misc/Emivest_MOR_Dec2011.pdf

                     About Emivest Aerospace

Emivest Aerospace Corporation -- http://www.sj30jet.com/-- is a
U.S.-based aircraft manufacturing company and a subsidiary of
Emirates Investment & Development PSC.  Emivest Aerospace
Corporation produces the SJ30 light jet.

Emivest Aerospace Corporation filed for Chapter 11 protection
(Bankr. D. Del. Case No. 10-13391) on Oct. 20, 2010.  Emivest
disclosed $80,700,232 in assets and $77,333,546 in liabilities as
of the Chapter 11 filing.

Daniel B. Butz, Esq., at Morris, Nichols, Arsht & Tunnell LLP, in
Wilmington, Delaware, serves as counsel to the Debtor.  Morgan
Joseph & Co. Inc. is the financial advisor to the Debtor.  The
Debtor also hired DLA Piper LLP (US) as special counsel to assist
in the marketing of its assets.  Attorneys at Pachulski Stang
Ziehl & Jones LLP serve as counsel to the Official Committee of
Unsecured Creditors.  Deloitte Financial Services LLP is the
Committee's financial advisor.


EVERGREEN SOLAR: Has $161.57MM Net Loss in 4 Weeks Ended Dec. 31
----------------------------------------------------------------
Evergreen Solar Inc.'s monthly operating report for the period
Nov. 27 to Dec. 31, 2011, says that net loss was $161.57 million
on $4.12 million of revenue.  Total reorganization expenses
consisting of a $152.55 million [loss] on sale of assets and
$4.94 million in professional fees contributed to the net loss.
Net loss before reorganization expenses was $9.00 million.  The
Debtor disclosed $66.18 million in assets and $361.38 million in
liabilities as of Dec. 31, 2011.

A copy of the operating report is available for free at:

        http://bankrupt.com/misc/Evergreen_Dec2011_MOR.pdf

                       About Evergreen Solar

Evergreen Solar, Inc. -- http://www.evergreensolar.com/--
developed, manufactured and marketed String Ribbon solar power
products using its proprietary, low-cost silicon wafer technology.

The Marlboro, Mass.-based Company filed for Chapter 11 bankruptcy
(Bankr. D. Del. Case No. 11-12590) on Aug. 15, 2011, before Judge
Mary F. Walrath.  The Company's balance sheet at April 2, 2011,
showed $373,972,000 in assets, $455,506,000 in total liabilities,
and a stockholders' deficit of $81,534,000.

Ronald J. Silverman, Esq., and Scott K. Seamon, Esq., at Bingham
McCutchen LLP, serve as general bankruptcy counsel to the Debtor.
Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski
Stang Ziehl & Jones LLP, serve as co-counsel.  Hilco Industrial
LLC serves as exclusive marketing and sales agent.  Klehr Harrison
Harvey Branzburg serves as special conflicts counsel.  Zolfo
Cooper LLC is the financial advisor.  UBS Securities, LLC, serves
as investment banker.  Epiq Bankruptcy Solutions has been tapped
as claims agent.

In conjunction with the Chapter 11 filing, the Company entered
into a restructuring support agreement with certain holders of
more than 70% of the outstanding principal amount of the Company's
13% convertible senior secured notes.  As part of the bankruptcy
process the Company will undertake a marketing process and will
permit all parties to bid on its assets, as a whole or in groups
pursuant to 11 U.S.C. Sec. 363.  An entity formed by the
supporting noteholders, ES Purchaser, LLC, entered into an asset
purchase agreement with the Company to serve as a 'stalking-horse"
and provide a "credit-bid" pursuant to the Bankruptcy Code for
assets being sold.

The supporting noteholders are represented by Michael S. Stainer,
Esq., and Natalie E. Levine, Esq., at Akin Gump Strauss Hauer &
Feld LLP, in New York.

An official committee of unsecured creditors has retained Pepper
Hamilton and Kramer Levin Naftalis & Frankel as counsel.  The
Committee tapped Garden City Group as communications services
agent.

Evergreen Solar is at least the fourth solar company to seek court
protection from creditors since August 2011.  Other solar firms
are start-up Spectrawatt Inc., which also filed in August,
Solyndra Inc., which filed early in September, and Stirling Energy
Systems Inc., which filed for Chapter 7 bankruptcy late in
September.

Evergreen sold the assets piecemeal in three auctions.  Max Era
Properties Ltd. from Hong Kong paid $6 million cash and $3.2
million in stock of China Private Equity Investment Holdings
Ltd. for the company name, intellectual property, and wafermaking
assets.  Kimball Holdings LLC paid $3.8 million for solar panel
inventory while the secured lenders exchanged $21.5 million of
their $165 million claim for a $171 million claim against Lehman
Brothers Holdings Inc.  Max Era and Sovello AG bought equipment
and machinery located at the Debtor's Devens, Massachusetts
facility for $8.9 million.


FRANCISCAN COMMUNITIES: Has $433,000 Net Loss in December 2011
--------------------------------------------------------------
Franciscan Communities St. Mary of the Woods, Inc., disclosed that
it had a net loss of $433,000 on $636,000 of net revenue for the
month ended Dec. 31, 2011.  Net loss has reached $650,000 since
the Chapter 11 filing.  As of Dec 31, 2011, assets total $24.32
million against postpetition liabilities of $14.73 million and
secured liabilities of $34.83 million.  A copy of the operating
report is available at:
http://bankrupt.com/misc/StMary_Dec2011_MOR.pdf

Net loss in November was $217,000 on $186,500 of revenue.  A copy
of the MOR is available at:
http://bankrupt.com/misc/StMary_Nov2011_MOR.pdf

                   About Franciscan Communities

Illinois-based Franciscan Communities St. Mary of the Woods, Inc.,
owns and operates a senior living community in Avon, Ohio.  The
not-for-profit community is owned and managed by the Franciscan
Sisters of Chicago Service Corp.

Franciscan Communities St. Mary of the Woods filed for Chapter 11
bankruptcy (Bankr. N.D. Ohio Case No. 11-19865) on Nov. 21, 2011,
after it failed to negotiate an out-of-court workout with holders
of tax-free bonds.  Judge Jessica E. Price Smith oversees the
case.  The Debtor disclosed assets of $36 million and debt
totaling $48 million as of the Chapter 11 filing.  In its
schedules, the Debtor disclosed $22,314,854 in assets and
$49,555,487 in liabilities.

The Debtor is represented by Heather Lennox, Esq., Carl E.
Black, Esq., and Daniel M. Syphard, Esq., at Jones Day, as
bankruptcy counsel.  The Garden City Group, Inc., is the claims
and noticing agent.  The Debtor tapped Deloitte Financial Advisory
Services LLP as restructuring advisor, and Houlihan Lokey Capital,
Inc., as its investment banker.

The U.S. Trustee appointed Beverly Laubert as patient care
ombudsman.

Franciscan Sisters of Chicago, the sole member of the Debtor, is
providing $4.5 million in DIP loans.  The DIP Lender is
represented by George Mesires, Esq., and Daniel P. Strzalka, Esq.,
at Ungaretti & Harris LLP.  The Bank of New York Mellon Trust
Company, N.A., the bond trustee, is represented by Bruce H. White,
Esq., and Clifton R. Jessup, Esq., at Greenberg Traurig LLP. Wells
Fargo Bank, N.A., as Master Trustee, is represented by Daniel S.
Bleck, Esq., at Mintz, Levin, Cohn, Ferris, Glovsky and Popeo,
P.C., and John R. Weiss, Esq., at Duane Morris LLP.  Sovereign
Bank, provider of the Debtor's letter of credit facility, is also
represented by John R. Weiss, Esq., at Duane Morris LLP.

The Official Committee of Unsecured Creditors in the
Chapter 11 cases of the Debtor is represented by McDonald Hopkins
LLC as counsel.


GSC GROUP: Ends December With $14.7 Million Cash
------------------------------------------------
In their monthly operating report for December 2011, GSCP, LLC,
GSCP Group, Inc., GSC Active Partners, Inc., GSCP (NJ), Inc., GSCP
(NJ) Holdings, L.P., and GSC Secondary Interest Fund had no income
or expense transactions for the month.

GSCP (NJ), L.P., reported a net loss of $740,000 on $153,800 of
revenue for the month.  Professional fees paid totaled $1.49
million.  GSCP (NJ) had total cash of $14.66 million at the end of
the month.

A copy of the December 2011 monthly operating report is available
for free at http://bankrupt.com/misc/GSC_Dec2011_MOR.pdf

                         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.

The Chapter 11 trustee completed the sale of business in July 2011
and filed a liquidating Chapter 11 plan and explanatory disclosure
statement in late August.  The bankruptcy court authorized the
trustee to sell the business to Black Diamond Capital Finance LLC,
as agent for the secured lenders.  Proceeds were used to pay
secured claims.  The price paid by the lenders' agent was designed
for full payment on $256.8 million in secured claims, with
$18.6 million cash left over.  Black Diamond bought most assets
with a $224 million credit bid, a $6.7 million note, $5 million
cash, and debt assumption.  A minority group of secured lenders
filed an appeal from the order allowing the sale.  Through a suit
in state court, the minority lenders failed to halt Black Diamond
from completing the sale.

The Chapter 11 Trustee and Black Diamond have filed rival
repayment plans for GSC Group.  As reported in the TCR on Dec. 16,
2011, Hilary Russ at Bankruptcy Law360 related that the Chapter 11
trustee for GSC Group, Inc., reached a handshake deal on Dec. 13,
2011, ending a bitter dispute with Black Diamond that delayed a
$235 million asset sale.

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.


HOSTESS BRANDS: Reports $1.78 Million Operating Loss in January
---------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Hostess Brands Inc. reported a $1.78 million
operating loss for a month ended Feb. 4 on net sales of
$187.4 million.  The monthly operating report filed in bankruptcy
court said that earnings before interests, taxes, depreciation and
amortization in the month was $7.3 million.  Contributing to the
operating loss was $6.6 million in reorganization expenses and
$2.4 million in depreciation.  The net loss in part resulted from
$2.6 million of interest expense.

                      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.  The day following the Jan.
11 Chapter 11 filing, Hostess had secured interim approval for a
$35 million loan.


HUDSON HEALTHCARE: Ends December 2011 With $271,400 Cash
--------------------------------------------------------
Hudson Healthcare Inc. disclosed total receipts of $917,500 and
disbursements of $939,300 during December 2011.  The company ended
the month with $271,400 following a negative net cash flow of
$21,700.  During the month, net loss was $198 on $579,800 of net
revenue.  Payments to bankruptcy professionals totaled $145,200.

A copy of the operating report is available at:

          http://bankrupt.com/misc/Hudson_Dec2011_MOR.pdf

In the prior month, cash receipts were $4.20 million and
disbursements totaled $4.20 million.

A copy of the November MOR is available at:

          http://bankrupt.com/misc/Hudson_Nov2011_MOR.pdf

                      About Hudson Healthcare

Hudson Healthcare Inc. is a non-for-profit corporation formed
under the laws of the State of New Jersey.  Until the sale of
Hoboken University Medical Center by the Hoboken Municipal
Hospital Authority, the Debtor owned and managed the day-today
operations of the Hospital on the Authority's behalf pursuant to a
Manager Agreement dated Feb. 1, 2007.  Other than certain contract
rights, other intangibles, and approximately 12 vehicles, the
Debtor did not own any Hospital assets.

Hudson Healthcare filed for Chapter 11 protection (Bankr. D. N.J.
Case No. 11-33014) in Newark on Aug. 1, 2011, estimating assets
and debt of less than $50 million.  Affiliate Hoboken Municipal
Hospital Authority also sought Chapter 11 protection.

Attorneys at Trenk, DiPasquale, Webster, Della Fera & Sodono,
P.C., in West Orange, N.J., serve as counsel to the Debtor.
Daniel T. McMurray, the patient care ombudsman, has tapped
Neubert, Pepe & Monteith, P.C., as his counsel effective Aug. 25,
2011.  The Official Committee of Unsecured Creditors of Hudson
Healthcare has retained Sills Cummis & Gross P.C., in Newark,
N.J., as its counsel, nunc pro tunc to Aug. 12, 2011.  JH Cohn LLP
serves as Financial Advisor to the Committee.  Epiq Bankruptcy
Solutions, LLC, is the Claims and Noticing Agent and Solicitation
Agent.


HUSSEY COPPER: Debtor Has $2-Mil. Profit in November
----------------------------------------------------
HCL Liquidating, formerly Hussey Copper Ltd., disclosed net
earnings of $2.00 million on $7.16 million of revenue during the
month ended Nov. 30, 2011.  Restructuring costs during the period
was $1.3 million.  The Debtor had total assets of $87.76 million
and current liabilities of $8.36 million and total secured debt of
$49.78 million as of Nov. 30, 2011.

A copy of the operating report is available at:

           http://bankrupt.com/misc/Hussey_HCL_Nov2011_MOR.pdf

On a stand-alone basis, Hussey Copper Corp. had $809,000 in assets
and $2,000 in liabilities as of Nov. 30, 2011.  The Debtor had $0
net earnings following $30,000 in revenue and $30,000 in operating
costs during the month of November.

Copies of the November 2011 operating reports filed by affiliates
Cougar Metals Inc., and Hussey Exports Ltd., Hussey Copper Corp.
are available at:

http://bankrupt.com/misc/Hussey_Cougar_Nov2011_MOR.pdf
http://bankrupt.com/misc/Hussey_Exports_Nov2011_MOR.pdf
http://bankrupt.com/misc/Hussey_Nov2011_MOR.pdf
http://bankrupt.com/misc/Hussey_OA_Nov2011_MOR.pdf
http://bankrupt.com/misc/Hussey_Orbie_Nov2011_MOR.pdf

                       About Hussey Copper

Hussey Copper Corp., based in Leetsdale, Pennsylvania, is one of
the leading manufacturers of copper products in the United States.
Hussey Copper was founded in Pittsburgh in 1848.  The Company and
its affiliates, which operate one manufacturing facility in
Leetsdale and two facilities in Eminence, Kentucky, manufacture "a
wide range of value-added copper products and copper-nickel
products.  The Company has more than 500 full-time employees.

Hussey Copper Corp. filed a Chapter 11 petition (Bankr D. Del.
Case No. 11-13010) on Sept. 27, 2011, with a deal to sell
substantially all assets.  Five other affiliates also filed
separate petitions (Case Nos. 11-13012 to 11-13016). Hussey
Copper Ltd. estimated $100 million to $500 million in assets and
debts.  Hussey Copper Corp. estimated up to $50,000 in assets and
up to $100 million in debts.

Mark Minuti, Esq., at Saul Ewing LLP, serves as counsel to the
Debtors.  Donlin Recano & Company Inc. is the claims and notice
agent.  The Debtors tapped Winter Harbor, LLC in substitution for
Huron Consulting Services LLC.

An official creditors' committee has been appointed in the case.
The panel selected Lowenstein Sandler PC as counsel.  The panel
selected FTI Consulting, Inc. as restructuring and financial
advisor.

The stalking horse bidder, KHC Acquisitions LLC, a unit of Kataman
Metals LLC, is represented in the case by David D. Watson, Esq.,
and Scott Opincar, Esq., at McDonald Hopkins LLC, in Cleveland.

Counsel to PNC Bank NA, as lender, issuer and agent for the
Debtors' secured lenders, are Lawrence F. Flick II, Esq., Blank
Rome LLP, in New York, and, Regina Stango Kelbon, Esq., at Blank
Rome LLP, in Wilmington.

The Hon. Brendan L. Shannon of the U.S. Bankruptcy Court for the
District of Delaware approved the name change of Hussey Copper
Corp. et al., to HCL Liquidation Ltd.  US private equity firm
Patriarch Partners officially acquired Hussey Copper on Dec. 16,
2011.  The buyout firm of distressed debt mogul Lynn Tilton
acquired Hussey Copper for $107.8 million in a nine-hour, 34-round
auction.


                          *********

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 Peter Chapman
at 240/629-3300.

                  *** End of Transmission ***