/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/120423.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, April 23, 2012, Vol. 16, No. 112 Headlines 22ND CENTURY GROUP: Freed Maxick Raises Going Concern Doubt ACCO BRANDS: Fitch Affirms LT Issuer Default Ratings at 'BB' AE BIOFUELS: Third Eye Agrees to Purchase Additional $1MM Notes AES CORP: Fitch Raises Issuer Default Rating to 'BB-' ALEC NAMAN: Case Summary & 20 Largest Unsecured Creditors AMERICAN AIRLINES: 3 Unions Support Merger With US Airways AMERICAN AIRLINES: AE FAs Closely Watching Potential Merger AMERICAN AIRLINES: Fort Worth & Dallas Chamber Worried on Merger AMERICAN BIO: Sherb & Co. Raises Going Concern Doubt AVION POINT: Court Converts Case to Chapter 7 AVISTAR COMMUNICATIONS: Incurs $1.4 Million Net Loss in Q1 BAUSCH & LOMB: Moody's Rates New Secured Credit Facilities 'B1' BERNARD L. MADOFF: Trustee Sues to Halt Lawsuit in Luxembourg BROWNIE'S MARINE: Wesley Armstrong Resigns from Board BUFFETS INC: Amends Schedules of Assets and Liabilities BUILDERS FIRSTSOURCE: Posts $19.2 Million Net Income in Q1 CAESARS ENTERTAINMENT: Board OKs 231,918 Option Grant to CEO CARILLON PLACE: Case Summary & 20 Largest Unsecured Creditors CATALYST PAPER: Obtains June 30 Extension of CCAA Stay Order CENTRAL FEDERAL: Board Declares 1-for-5 Reverse Stock Split CENTRAL FEDERAL: Plans to Restructure Terms of Rights Offering CHINA CEETOP.COM: Clement C.W. Chan Raises Going Concern Doubt CHINA GREEN ENERGY: PKF Raises Going Concern Doubt CHINA SHENGHUO: Gets Deficiency Notice From NYSE Amex CHINA MARKETING: Child Van Wagoner Raises Going Concern Doubt CICERO INC: Chairman John Steffens Holds 42.6% Equity Stake CIRCLE ENTERTAINMENT: Bryan Bloom Reappointed as Director CONDOR INSURANCE: Official, Lawyer Are Liable for $314 Million CONSTELLATION BRANDS: Fitch Raises Issuer Default Rating to 'BB+' CRET RESTORATION: Hearing on Case Dismissal Bid Reset for May 1 CYBERDEFENDER CORP: John Combias Ceases to Hold 5% Equity Stake CYBRDI INC: KCCW Accountancy Raises Going Concern Doubt DELTA PETROLEUM: Brower Piven Starts Class Suit for Share Buyers DEWEY & LEBOEUF: Said To Be In Talks With Greenberg on Merger DEX MEDIA WEST: Bank Debt Trades at 36% Off in Secondary Market DEX ONE: Closes Tender offer for 12% / 14% Sr. Subordinated Notes DISCOVER FINANCIAL: Moody's Issues Summary Credit Opinion DOMINION RESOURCES: Moody's Issues Summary Credit Opinion ENOVA SYSTEMS: Gets NYSE Amex Exchange Non-Compliance Notice FARLAP DEVELOPMENT: Case Summary & 9 Largest Unsecured Creditors FIFTH SEASON INT'L: Marcum Bernstein Raises Going Concern Doubt FIRSTFED FINANCIAL: FDIC Objects to First Amended Ch. 11 Plan FNBH BANCORP: BDO USA Raises Going Concern Doubt FORT LEE FEDERAL: Closed; Alma Bank Assumes All Deposits GATEWAY VENTURES: Case Summary & 5 Largest Unsecured Creditors GENERAL MOTORS: New GM Not Required to Honor Extended Warranties GENWORTH FINANCIAL: Moody's Issues Summary Credit Opinion GETTY PETROLEUM: Judge Confirms Bionol Clearfield' $240MM Win GRUBB & ELLIS: Stipulation With Committee and BCG Approved GUIDED THERAPEUTICS: Appoints Linda Rosenstock to Board HANMI FINANCIAL: Reports $7.3 Million Net Income in First Quarter HAWKER BEECHCRAFT: Bank Debt Trades at 46% Off in Secondary Market HD SUPPLY: Messrs. Holt & Bernasek Quit; V. Amin Named to Board HD SUPPLY: Consummates Refinancing Transactions HERCULES OFFSHORE: Files Fleet Status Report as of April 19 HIGH PLAINS: Eide Bailly Raises Going Concern Doubt HOSTESS BRANDS: Teamsters Committed to Deal Before May 1 Ruling HOWELL DEVELOPMENT: Case Summary & 9 Largest Unsecured Creditors HUB INTERNATIONAL: Moody's Affirms 'B3' CFR; Outlook Stable HWI GLOBAL: Suspending Filing of Reports with SEC IMAGEWARE SYSTEMS: Registers Add'l 2-Mil. Shares Under Award Plan IMPERIAL PETROLEUM: Enters Into Joint Venture with Peak Concepts INFINITY ENERGY: Closes Transactions with Amegy and Off-Shore INTEGRITY INSURANCE: Court Backs $35-Mil. Asbestos Claim Denial INTELLICELL BIOSCIENCES: Incurs $32.8 Million Net Loss in 2011 INTELLICELL BIOSCIENCES: Has License Agreement with Regen Medical INTERLEUKIN GENETICS: Draws $1.3-Mil. Under Pyxis Credit Facility INTERNATIONAL HOME: Files for Chapter 11 in Puerto Rico INTERNATIONAL HOME: Case Summary & 20 Largest Unsecured Creditors IPALCO ENTERPRISES: Fitch Cuts Issuer Default Rating to 'BB+' J. MOSS: Voluntary Chapter 11 Case Summary JEFFERSON COUNTY: Ala. Counties, Cities Can File Bankruptcy JETSTAR PARTNERS: Files Schedules of Assets and Liabilities JETSTAR PARTNERS: Hires Bell Nunnally as Counsel KAISER DEVELOPMENT: Case Summary & 2 Largest Unsecured Creditors LEAGUE NOW: Harris Rattray Raises Going Concern Doubt LEVEL 3: Subsidiary Provides Full Guarantee to 8.625% Notes LEVEL 3: To Exchange $900MM 8.625% Senior Notes for New Notes LEVI STRAUSS: Starbucks CFO Troy Alstead Appointed to Board MANAUSA HOLDINGS: Case Summary & 13 Largest Unsecured Creditors MARIANA RETIREMENT FUND: Unidentified Creditors Seek Dismissal MC2 CAPITAL: Court Permits Panel to Hire Olson as General Counsel MEDIA GENERAL: Incurs $34.4 Million Net Loss in First Quarter MIT HOLDING: Swings to $1.3 Million Net Loss in 2011 MOUNTAIN NATIONAL: Names J. Friddell as CEO, M. Brown as Pres. MMRGLOBAL INC: Has $15 Million Investment Agreement with Granite NAVARRE INDUSTRIES: Case Summary & 20 Largest Unsecured Creditors NEWPAGE CORP: Noteholders Object to Panel's Claims Validity Probe NORTEL NETWORKS: Judge Taps Mediator for Retiree Welfare Dispute NORTHCORE TECHNOLOGIES: Inks New Agreement with Trinity O&G LEASING: Expands Scope of YoungWilliams Employment OILSANDS QUEST: Christopher Hopkins Resigns From Board PETROEXPORT LTD: Judge Won't Dismiss $35-Mil. Suits PHARMOS CORPORATION: Reports $576,300 Net Loss in Q1 2012 PJ FINANCE: Confirmation Hearing on Joint Plan Adjourned to May 8 PLATINUM STUDIOS: Adam Post Resigns from Board of Directors PRECISION OPTICS: Receives $1 Million Order for Endoscopes PROSPECT MEDICAL: Moody's Upgrades CFR to 'B2'; Outlook Stable REDDY ICE: Reaches $1-Mil. Deal in Shareholders' Cartel Suit REGENCY CENTERS: Fitch Affirms Preferred Stock Rating at 'BB+' REGENCY ENERGY: Fitch Rates Series A Preferreds at 'B+' RESIDENTIAL CAPITAL: Non-Payment Cues Fitch to Cut IDR to 'C' RITE AID: Jean Coutu Discloses 24.8% Equity Stake ROBERTS HOTELS: Spartanburg's Clarion Hotel Owner in Chapter 11 ROBERTS HOTELS: Voluntary Chapter 11 Case Summary ROC FINANCE: Moody's Confirms 'B3' CFR; Outlook Stable ROCK POINTE: Status Quo on Use of DMARC Cash Until Hearing Set ROOMSTORE INC: Court Approves BDO USA as Auditor ROSETTA GENOMICS: Receives Key European Patent on Oncology ROTHSTEIN ROSENFELDT: Lexington Wants $10-Mil. Pay Order Amended SABRA HEALTH: Moody's Upgrades CFR to 'B1'; Outlook Stable SANOHO DEVELOPMENT: Condo Developer Files in San Fernando Valley SANOHO DEVELOPMENT: Case Summary & 12 Largest Unsecured Creditors SEQUENOM INC: MaterniT21 PLUS Covered Under MultiPlan Agreement SIGMA LABS: Pritchett Siler Raises Going Concern Doubt SKINNY NUTRITIONAL: Issues Add'l 46 Million Shares to Ironridge SLM CORPORATION: Moody's Issues Summary Credit Opinion SOLYNDRA LLC: No Creditors Object to Longer Exclusivity SOUPMAN INC: Posts $741,100 Net Loss in Feb. 29 Quarter SOUTHERN OAKS: Files Cash Collateral Budget for Q1 2012 SPX ANALYTICS: Files for Chapter 11 in Milwaukee STARLIGHT INVESTMENTS: To Sell Modigene & WaferGen Shares STERLING INFOSYSTEMS: Moody's Says Acquisition No Impact on CFR SYLAMORE VALLEY: Files for Chapter 9 in Batesville, Arkansas SYLAMORE VALLEY: Chapter 9 Case Summary TAHITIAN INN: Case Summary & 17 Largest Unsecured Creditors TARGETED MEDICAL: EFP Rotenberg Raises Going Concern Doubt TIMMINCO LIMITED: To Proceed With April 24 Auction TRAFFIC CONTROL: Files for Chapter 11 to Sell Assets TRAFFIC CONTROL: Case Summary & 30 Largest Unsecured Creditors TRANS ENERGY: Presented at IPAA Oil and Gas Investment Symposium TRANSALTA CORP: Moody's Reviews '(P)Ba1' Rating for Downgrade TRI-VALLEY CORP: Brown Accountancy Raises Going Concern Doubt TRIBUNE CO: Bank Debt Trades at 33% Off in Secondary Market TRIMURTI INVESTMENTS: Wants to Use Rental Income in 4 Properties TW & COMPANY: Security Guard Provider Files for Chapter 11 TW & COMPANY: Case Summary & 20 Largest Unsecured Creditors TXU CORP: Bank Debt Trades at 47% Off in Secondary Market TXU CORP: Bank Debt Trades at 43% Off in Secondary Market UNITED BANCSHARES: McGladrey & Pullen Raises Going Concern Doubt UNIVERSITY GENERAL: Moss Krusick Raises Going Concern Doubt US FIDELIS: Settles WARN Suit for $1.4 Million USEC INC: Hires Consultants to Review Organizational Structure VHGI HOLDINGS: Pritchett Siler Raises Going Concern Doubt VIRGINIA TOOLS: Case Summary & 20 Largest Unsecured Creditors VOICE ASSIST: Mantyla McReynolds Raises Going Concern Doubt WEST CORP: Reports $34 Million Net Income in First Quarter WILLIAM LYON: Has 321 New Home Orders for First Quarter ZHONG WEN: Bongiovanni & Associates Raises Going Concern Doubt * Posner Discusses Psuedo-Conflict Among Circuit Courts * Sheriff Isn't Required to Check Bankruptcy Filings * New Jersey Bank Hikes Year's Failures to 17 * S&P Global Default Tally at 28 as of April 19 * Moody's Says E&S Insurers Challenged by 2011 Catastrophe Losses * Moody's Says Pharma Sector on Neg. Outlook Over Patent Cliffs * Moskowitz Among Law360's Top Bankruptcy Attorneys Under 40 * Senate Passes Bill to Head Off Shortage of Bankruptcy Judges * BOND PRICING -- For Week From April 16 to 20, 2012 ********* 22ND CENTURY GROUP: Freed Maxick Raises Going Concern Doubt ----------------------------------------------------------- 22nd Century Group, Inc., filed on April 16, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. Freed Maxick CPAs, PC), in Buffalo, New York, expressed substantial doubt about 22nd Century Group's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and, as of Dec. 31, 2011, has negative working capital of $1.9 million and a shareholders' deficit of $1.2 million. "Additional financing will be required during 2012 in order to satisfy existing current obligations and finance working capital needs, as well as additional losses from operations that are expected in 2012." The Company reported a net loss of $1.34 million on $1.01 million of revenues for 2011, compared with a net loss of $1.42 million on $49,784 of revenue for 2010. The Company's balance sheet at Dec. 31, 2011, showed $2.39 million in total assets, $3.60 million in total liabilities, and a stockholders' deficit of $1.21 million. A copy of the Form 10-K is available for free at: http://is.gd/ihQsGY Clarence, New York-based 22nd Century Group, Inc., through its wholly-owned subsidiary, 22nd Century Ltd, is a plant biotechnology company using technology that allows for the level of nicotine and other nicotinic alkaloids (e.g., nornicotine, anatabine and anabasine) in tobacco plants to be decreased or increased through genetic engineering and plant breeding. ACCO BRANDS: Fitch Affirms LT Issuer Default Ratings at 'BB' ------------------------------------------------------------ In conjunction with ACCO Brands Corporation's approximately $1.1 billion acquisition of MeadWestvaco Corporation's Consumer and Office Products business (Mead C&OP), the company obtained a $1.020 million credit agreement. The purchase price is comprised of approximately $675 million in ACCO shares and $460 in cash. Fitch affirms the 'BB' IDR for ACCO and the ratings on existing debt as follows: ACCO Brands Corporation Long-term Issuer Default Ratings (IDR) at 'BB'; $425 million 10.625% senior secured notes due March 2015 at 'BB+'; $175 million senior secured ABL facility due September 2013 at 'BB+'; $246 million 7.625% subordinated notes due August 2015 at 'BB-'; In addition, Fitch assigns ratings to the new Credit Agreement Commitments with the following obligors as follows: ACCO Brands Corporation $200 million US$ senior secured revolving credit commitment due 2017 at 'BB+'; $50 million multicurrency senior secured revolving credit commitment due 2017 at 'BB+' (ACCO Brands Canada, Inc. is also an obligor under this facility); $95 million US$ senior secured Term Loan A Commitment due 2017 at 'BB+'; $450 million US$ senior secured Term Loan B Commitment due 2019 at 'BB+'. Monaco SpinCo, Inc. $190 million US$ secured Term Loan A commitment due 2017 at 'BB+'; $500 million senior unsecured note due in 2020 at 'BB'. ACCO Brands Canada, Inc. $35 million Canadian $ secured Term Loan A commitment due in 2017 at 'BB+'. At Dec. 30, 2011, ACCO had $669 million of debt. The ratings of the existing facilities which encompass the $246 million subordinated debt, $425 million note and $175 million ABL are likely to be withdrawn on or near the acquisition closing date. The new commitments can be terminated if the acquisition does not close by August 2012. Encompassed within the $1,020B bank facility are three term loans totaling $770 million and $250 million for two revolving credit facilities. The bank facilities will be secured by a first-priority lien on substantially all assets. They also have a maximum leverage covenant of 4.5 times (x) and a minimum interest covenant of 3x. Both become more restrictive over time. The transaction is expected to close during the second quarter after shareholder approval and other customary items. A shareholder meeting date is set for April 23, 2012. Additionally, ACCO is issuing a 10-year, $500 million senior unsecured note with Monaco SpinCo Inc., a wholly owned subsidiary of ACCO as obligor. After the merger, the note will be guaranteed by ACCO and its subsidiaries with ACCO a co-issuer. The proceeds of the $500 million notes along with $770 million in bank term loans will be used to fund the $460 million payment to MeadWestvaco Corporation, refinance the $425 million, 10.625% senior secured notes due March 2015, and redeem the $246 million, 7.625% senior subordinated notes due August 2015 along with related fees. On April 16, 2012, ACCO launched a cash tender offer and consent solicitation for the $425 million senior secured notes which will expire on May 11, 2012. Fitch expects to withdraw ratings on the asset-based lending facility loan facility (ABL) and would withdraw and/or reduce the amount of outstanding on the $425 million senior secured notes and the $246 million subordinated note depending on the tender and redemption. Fitch had previously indicated in its press release of Jan. 30, 2012 that it expected to rate the company's proposed senior secured credit facilities 'BB+'. Fitch again affirms ACCO's 'BB' IDR and the 'BB+' rating on the senior secured facilities. The Outlook is Stable. The ratings and Outlook reflect Fitch's expectation that ACCO will successfully complete its merger with Mead C&OP. Mead C&OP is a leading provider of school, office and time management products in North America and Brazil. The combined entity will benefit from greater scale, a stronger business profile, increased profitability and greater cash flow. Rating Rationale: Fitch views the transaction as highly positive. The combined company is estimated to generate revenues in excess of $2 billion and EBITDA of approximately $300 million. ACCO estimates cost savings of $20 million annually by 2014. There is a minimal overlap in the companies' products mix and, more important, Mead C&OP has a larger presence in the consumer retail channel, which is complementary to ACCO's strength in the commercial channel. Another benefit of the merger is greater geographic diversification as the combined entity will generate 12% of its sales from Latin America and double ACCO's size in Canada. Mead C&OP's higher margins and lower operating earnings volatility reduces the business risk of the combined entities. Fitch expects credit protection measures to improve following the merger. The strong profitability of Mead C&OP, the equity component of the purchase price and refinancing of ACCO's high- coupon senior secured notes will enhance the combined company's credit profile. Total debt to operating EBITDA is estimated to be approximately 3.7x and EBITDA to interest near 4.0x. The combined entity is estimated to be able to produce $100 million of free cash flow annually. If the transaction is not completed, Fitch will review the ratings to ensure they appropriately reflect the cash flow profile and business risk of ACCO on a standalone basis. Ratings Drivers: The office supply industry is in a slow secular decline, with revenues, operating earnings and cash flow highly correlated to the business cycle and corporate spending. Expenditures for office supply products fall during recessionary periods as these items are considered discretionary. ACCO experienced revenues declines of approximately 20% in 2008 and 2009 mainly attributed to the U.S. recession; however, the company was able to maintain EBITDA margins and even increase them in 2009. In addition, laptop computers, digital pads and smart phones have diminished the need for certain paper-based products. Cash flow can be seasonal, and periodic heightened competition from private label products can exacerbate pressure on earnings and cash flows. Although the combined entity will have greater diversification it will be exposed to these elements, which place a limitation on the ratings to low investment grade. ACCO's credit ratings are further limited by its position as a consolidator in the industry as this growth strategy may lead to periodic increases in its leverage. Current plans to reduce debt when the Mead C&OP transaction is executed will provide the company with greater financial flexibility to make future acquisitions. As a result, Fitch does not anticipate significant improvement in the company's credit measures beyond the near-to- intermediate term. Although ACCO is likely to seek accretive acquisitions and structure them with a minimal impact on its credit profile, such deals are at best opportunistic. As the company is focus on deploying FCF for growth, Fitch does not expect the firm to engage in either share repurchases or dividends as they would weaken its credit profile. However, a large debt financed acquisition without concrete measures to reduce debt meaningfully below 4.0x will likely lead to a negative rating action. Recent Operating Performance and Credit Statistics: In 2011 ACCO's sales increased 3% due to foreign exchange translation with volume declines of 2% offset by positive pricing of 2%. EBITDA and EBITDA margins were flat at $155 million and 11.7% respectively. Funds from operations adjusted leverage has been trending downward for a number of years to 5.1x in 2011 as the result of a combination of debt reduction and increased profits. Leverage will increase this year as the acquisition related debt is added without a full year of Mead C&OP's profit and cash flows. Free cash flow improved to $48 million from $41 million in 2010 given less working capital usage. Fitch expects marked improvement in free cash flow in 2013 when a full year of Mead C&OP's strong cash generation is added to ACCO's consolidated results. AE BIOFUELS: Third Eye Agrees to Purchase Additional $1MM Notes --------------------------------------------------------------- Aemetis Advanced Fuels Keyes, Inc., a subsidiary of Aemetis, Inc., formerly known as AE Biofuels, Inc., entered into Amendment No. 6 to the Note Purchase Agreement with Third Eye Capital Corporation as Agent. Pursuant to the Sixth Amendment, Agent agreed to purchase additional Notes in the original principal amount of $1,000,000. The Company agreed to pay an amendment fee to the Agent of $75,000 in cash and issue 340,000 shares of common stock of Aemetis, Inc. As of March 31, 2012, the principal balance and all accrued and unpaid interest and fees outstanding on the Note was $5,973,750 and the accrued and unpaid Revenue Participation was $6,937,999. Concurrently with the Amendment No. 6 to the Note Purchase Agreement dated as of April 13, 2012, AAFK entered into a Limited Waiver to the Note Purchase Agreement and Limited Waiver to the Note and Warrant Purchase Agreement pursuant to which Third Eye Capital Corporation and Third Eye Capital Credit Opportunities Fund - ABL Opportunities Fund waived certain 2012 defaults and financial covenants. In exchange for the Limited Waivers, the Company issued 650,000 shares of common stock of Aemetis, Inc. On April 13, 2012, Third Eye Capital Corporation, as agent, entered into the Sixth Amendment pursuant to which Purchaser purchased an additional $1,000,000 of Senior Secured Term Notes on the same terms and conditions provided for in the Note Purchase Agreement dated as of Oct. 18, 2010, as subsequently amended of Aemetis Advanced Fuels Keyes, Inc., a subsidiary of Aemetis, Inc. About AE Biofuels AE Biofuels, Inc. (OTC BB: AEBF) -- http://www.aebiofuels.com/-- is a biofuels company based in Cupertino, California, developing sustainable solutions to address the world's renewable energy needs. The Company is commercializing its patent-pending next- generation cellulosic ethanol technology that enables the production of biofuels from both non-food and traditional feedstocks. Its wholly-owned Universal Biofuels subsidiary built and operates a nameplate 50 million gallon per year biodiesel production facility on the east coast of India. The Company reported a net loss of $1.72 million on $1.59 million of sales for the three months ended Sept. 30, 2010, compared with a net loss of $3.78 million on $4.05 million of sales for the same period a year earlier. BDO Seidman, LLP, in San Jose, Calif., expressed substantial doubt about AE Biofuels' ability to continue as a going concern, following the Company's 2009 results. The independent auditors noted that the Company has incurred recurring losses, and has a working capital deficit and total stockholders' deficit as of December 31, 2009. The Company's balance sheet at Sept. 30, 2010, showed $20.23 million in total assets, $29.03 million in total liabilities, all current, and a stockholders' deficit of $8.80 million. The Company has not filed financial reports after filing its Form 10-Q for the quarter ended Sept. 30, 2010. AES CORP: Fitch Raises Issuer Default Rating to 'BB-' ----------------------------------------------------- Fitch Ratings has upgraded the Issuer Default Rating (IDR) of AES Corporation (AES) by one notch to 'BB-' from 'B+' and affirmed the short-term IDR at 'B'. There is no change in debt instrument ratings. Fitch has affirmed AES' senior secured debt at 'BB+' and unsecured debt at 'BB'. Fitch has also affirmed the 'B+' rating for the trust preferred stock issued by AES Trust III. The Rating Outlook is Stable. The one-notch upgrade in AES' IDR is driven by a reduction in the company's business risk profile with a shift in management strategy towards reducing geographic scope, selling non-core assets, cutting corporate overhead, and pursuing growth in key markets driven by long-term contractual generation assets. The acquisition of DPL Inc. (DPL; rated with an IDR of 'BB+' by Fitch), completed in November 2011, is supportive of AES business profile, since it increases the contribution of stable regulated earnings in the overall portfolio mix. The ratings of AES Corporation reflect dividend support from subsidiaries that are predominantly engaged in regulated utility operations and contracted power generation. The distribution from the competitive businesses is expected to decline in proportion with DPL's acquisition, reducing AES' exposure to electricity and fuel commodity price risks. AES' rating is restricted by a high degree of leverage, subordination of parent level debt to the non- recourse project debt and a large reliance on dividends from subsidiaries in emerging markets. Under its new CEO, AES has hastened its exit from non-core markets. The company has completed several non-core asset sales since September 2011 that have provided over $760 million of proceeds. AES' goal is to generate up to $2 billion of proceeds from asset sales in the medium term. Management plans to concentrate new capital investments across fewer countries to reduce the complexity of a worldwide portfolio and to lower overhead costs. AES expects to focus on its market position in Chile, the U.S., and Brazil, and pursue growth in markets such as Turkey and Southeast Asia. As a result, the proportional gross margin from core markets is expected to climb to 80%-90% over the next few years as compared to 65%-75% currently, which is positive for the overall business risk profile. Management expects to use the proceeds from sale of assets to pay down debt, return capital to shareholders via share buybacks and dividend increases, and invest in growth projects. AES has a somewhat unique corporate profile and structure and Fitch analyzes AES as a holding company with a portfolio of assets and investments. Financially, this represents a deconsolidated approach with respect to AES' cash flows and debt levels. Fitch uses parent operating cash flows (POCF), a non-GAAP measure, with its emphasis on dividends received, to analyze AES' credit metrics. This approach, similar to the method used by AES' lenders in financial covenants, recognizes that the subsidiaries are encumbered by individual debt that is structurally superior to the debt of the corporate parent. The residual subsidiary cash flow available for upstream dividends and distributions has greater volatility than the direct cash flow of the operating subsidiaries, and may be subject to payment restrictions under subsidiary debt covenants, corporate by-laws, or national laws. Fitch expects 2012 POCF to benefit from the integration of DPL, which would improve parent leverage metrics. In addition to DPL's acquisition, AES commissioned more than 2,000 megawatts (MW) of new, contracted power capacity in Chile, Panama, Bulgaria, and the U.S. in 2011 that will add to cash flow in 2012. AES has over 2,300 MW of generation capacity under construction that is expected to come online over 2012-2015. Fitch expects POCF over 2012-15 to benefit from the growth in AES' contracted generation portfolio, most notably in Latin America. However, Fitch expects the increase in POCF to be tempered by projected weakness in AES' U.S. Utilities portfolio. Fitch expects distributions from IPALCO Enterprises, AES' wholly owned subsidiary, to be muted over this time period due to significant capex needed to bring its predominantly coal-fired generation portfolio into compliance with emission rules. In addition, the distributions from DPL are expected to weaken due to margin pressure from low wholesale power prices and intense retail competitive activity. Fitch expects AES to generate between $500 million-$550 million of annual parent free cash flow over 2012-15 before including asset sales and return of capital. Fitch expects parent free cash flow to improve in 2016. Fitch has not assumed any paydown of parent level debt in its forecasts as it is likely that debt reduction may be conducted at the subsidiary level. Any parent level debt reduction will provide upside to Fitch's forecasted credit metrics. Management recently announced a plan to initiate common dividends in the third quarter of 2012 at the annual rate of $120 million. Fitch views the dividend announcement as a neutral credit factor, as it is in line with the higher assurance of a core amount of future cash flow from utility and contracted sources. In its forecasts, Fitch assumes that AES returns capital to shareholders as permissible within its restricted payment limitations. As of Dec. 31, 2011, the aggregate amount of share buybacks and dividends was limited by debt covenants to approximately $483 million. The basket grows at the rate of 30% of POCF adjusted for corporate overheads, parent cash interest, and taxes. Fitch has not assumed any reinvestment of parent free cash flow in growth projects. As a result, cash starts to build up on the balance sheet beginning 2013. Fitch expects AES' debt-to-POCF ratio over 2012-15 to trend closer toward the lower end of management's targeted range of 4.5 times (x)-5.5x. These metrics are consistent with Fitch's guideline metrics for a 'BB-' rated issuer. The net debt to POCF falls to 3.8x by 2015 as cash builds up on the balance sheet in Fitch's forecasts. The affirmation of AES' debt instruments, senior secured at 'BB+', senior unsecured at 'BB' and trust preferred at 'B+', reflects Fitch's typical notching uplift applied to the capital structure for issuers with IDRs in the 'BB' category per Fitch's criteria report 'Recovery Ratings and Notching Criteria For Utilities,' dated Aug. 12, 2011. 'BB' category credits are accorded a generic capital structure uplift based on Fitch's expectations of higher than average recoveries for regulated assets over the course of a business cycle. AES' mix of businesses, which include both regulated and non-regulated assets as well as investments in non- developed countries, weighs on the notching uplift accorded. Fitch performs a bespoke analysis for issuers with IDRs in the 'B' category which weighs recovery valuations more heavily in instrument rating assignments since 'B' category credits have an elevated probability of default than 'BB' IDR category or higher issuers. As a result, prior to the upgrade of AES' IDR, the debt instruments carries a Recovery Rating (RR). The Stable Outlook reflects ample liquidity and manageable debt maturities over the forecast period. The Outlook also reflects Fitch's view that utilities and contracted generation continue to derive a significant portion of the POCF (greater than 80% over the forecast period). It is Fitch's expectation that management pursues a balance capital allocation policy of debt paydown and investment in new projects aside from return of capital to shareholders using parent-level free cash flows, return of capital from the projects, and sale of proposed non-core assets. What Could Trigger a Rating Action Strong Subsidiary Performance: Positive rating actions could be driven by improving credit metrics from management exceeding its target for subsidiary distributions and/or a decrease in parent debt. Consistent reduction in overall portfolio business risk is also supportive of future improvement in credit ratings. Aggressive Financial Strategy: Fitch believes that negative rating actions would likely coincide with adoption of a more aggressive financial strategy, such as a leveraging transaction to fund merger and acquisition activity or outsized return of capital to shareholders. Reduced Subsidiary Dividends: A material decline in subsidiary dividends due to operational drivers or restrictions imposed by foreign governments could also lead to adverse rating actions. Fitch upgrades the following ratings with a Stable Outlook: AES Long-term IDR to 'BB-' from 'B+'. Fitch affirms the following ratings with a Stable Outlook and removes the RRs: AES Senior Secured debt at 'BB+'; Senior Unsecured debt at 'BB'; Short-term IDR at 'B'. AES Trust III Trust Preferred at 'B+' ALEC NAMAN: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Alec Naman Catering, Inc. dba Naman's Catering Naman's at Stankey fdba Naman's Middlebay Cafe Naman's at Magnolia Ballroom 1909 Brookdale Drive West Mobile, AL 36618-1194 Bankruptcy Case No.: 12-01357 Chapter 11 Petition Date: April 18, 2012 Court: U.S. Bankruptcy Court Southern District of Alabama (Mobile) Debtor's Counsel: Irvin Grodsky, Esq. IRVIN GRODSKY, P.C. P.O. BOX 3123 Mobile, AL 36652-3123 Tel: (251) 433-3657 E-mail: igpc@irvingrodskypc.com Estimated Assets: $50,001 to $100,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/alsb12-01357.pdf The petition was signed by Elias M. Naman, II, president. AMERICAN AIRLINES: 3 Unions Support Merger With US Airways ---------------------------------------------------------- The Transport Workers Union (TWU), the Association of Professional Flight Attendants (APFA) and the Allied Pilots Association (APA) issued the following joint statement: "On behalf of nearly 55,000 American Airlines front-line employees--including the 17,000 members of the Association of Professional Flight Attendants, the 10,000 members of the Allied Pilots Association and the 26,000 members of the Transport Workers Union--we are pleased to confirm our support of a possible merger between our airline and US Airways. We have reached agreements on terms sheets for collective bargaining agreements that would govern the American Airlines employees of the merged airline with US Airways. "This significant step represents our shared recognition that a merger between American Airlines and US Airways is the best strategy and fastest option to complete the restructuring of American Airlines, enabling it to exit the Chapter 11 bankruptcy process and restore American Airlines to a preeminent position in the airline industry. "As envisioned, a merger of US Airways and American Airlines provides the best path for all constituencies, including employees of both American Airlines and US Airways. The contemplated merger would be based on growth, preserve at least 6,200 American Airlines jobs that would be furloughed under the company's standalone strategy, and provide employees of both American and US Airways with competitive, industry-standard compensation and benefits. Over the long term, the combined new airline would support greater job security and advancement opportunities for both American Airlines' and US Airways' employees that are far superior to those available to employees at either airline on a stand-alone basis. Importantly, by avoiding a lengthy and contentious 1113 process, the new carrier would be able to emerge from bankruptcy more quickly. "A merger would create a foundation to establish American Airlines as a vigorous competitor of the two larger network carriers and the industry at large. Customers of both airlines and air travelers in general will benefit greatly from a viable third network carrier and significantly enhanced travel choices." Allied Pilots Association Founded in 1963, the Allied Pilots Association--the largest independent pilot union in the United States--is headquartered in Fort Worth, Texas. APA represents the 10,000 pilots of American Airlines, including 649 pilots not yet offered recall from furlough. The furloughs began shortly after the Sept. 11, 2001 attacks. Also, several hundred American Airlines pilots are on full-time military leave of absence serving in the armed forces. Association of Professional Flight Attendants Founded in 1977, the Association of Professional Flight Attendants (APFA) is the largest independent Flight Attendant union in the nation. It represents 17,000 Flight Attendants at American Airlines. APFA Members live in almost every state of the nation and serve millions of Americans as they travel the nation and the world. In 2003, APFA played a major role in keeping American Airlines solvent and out of bankruptcy by giving back an employee bailout of $340 million in annual salary and benefits, for a total of over $2 billion and counting. APFA had been in negotiations with American for almost four years when the carrier filed for chapter 11-bankruptcy protection on November 29, 2011. Laura Glading is serving in her second four-year term as president of the union. Transport Workers Union The Transport Workers Union of America (TWU) represents 200,000 workers and retirees, primarily in commercial aviation, public transportation and passenger railroads. Included in the union's membership are 26,000 workers at American Airlines. TWU represents seven work groups at American Airlines including Fleet Service, Aviation Maintenance Technicians (aircraft mechanics), Stock Clerks, Dispatchers, Ground School Instructors, Flight Simulator Technicians and Facility Maintenance Mechanics, TWU also represents Dispatchers at US Airways. The union is an affiliate of the AFL-CIO. 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, Esq., John Lyons, Esq., Felecia Perlman, Esq., and Jay Goffman, Esq., 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 AIRLINES: AE FAs Closely Watching Potential Merger ----------------------------------------------------------- Robert Barrow, president of the Association of Flight Attendants- CWA, AFL-CIO (AFA) at American Eagle, issued the following statement on the bankruptcy negotiations and a potential merger: "We continue to negotiate with American Eagle management to reach an agreement rather than a court imposed settlement. We are focused on job security and a better future for American Eagle Flight Attendants. We welcome innovative solutions that would fully recognize the contributions of American Eagle Flight Attendants, much like the divestiture that was planned prior to the bankruptcy. Not long ago, that plan promised job security and greater opportunity for the dedicated workers at American Eagle. "We are paying close attention to any potential merger. AFA is committed to protecting American Eagle Flight Attendants, ensuring the success of our airline, and working swiftly through this process. The potential merger announcement does not change AFA's continued work to vigorously oppose unnecessary concessions. We will ensure Flight Attendants play an integral role in the reshaping and rebuilding of American Eagle. "American Eagle Flight Attendants have contributed to a profitable airline. It is only due to a poor business plan executed by the management of our parent company that American Eagle Flight Attendants are facing the onerous process of Chapter 11. It is a travesty that American management is seeking to abrogate the contracts of mainline American Airlines workers, which led to support from those workers' unions for an unsolicited bid from US Airways to buy American. Management has an opportunity to reach an agreement with a different outcome at American Eagle. "AFA experts are fully engaged in protecting our rights in this bankruptcy and in any potential merger or divestiture. As members of AFA, American Eagle Flight Attendants remain proud of the contributions we make daily to the airline. Along with our fellow front-line workers, we will continue our work as safety professionals and stand together to push back against any efforts to minimize our contributions." The Association of Flight Attendants is the world's largest Flight Attendant union. Focused 100 percent on Flight Attendant issues, AFA has been the leader in advancing the Flight Attendant profession for over 65 years. Serving as the voice for Flight Attendants in the workplace, in the aviation industry, in the media and on Capitol Hill, AFA has transformed the Flight Attendant profession by raising wages, benefits and working conditions. Nearly 60,000 Flight Attendants at 21 airlines come together to form AFA, part of the 700,000-member strong Communications Workers of America (CWA), AFL-CIO. 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, Esq., John Lyons, Esq., Felecia Perlman, Esq., and Jay Goffman, Esq., 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 AIRLINES: Fort Worth & Dallas Chamber Worried on Merger ---------------------------------------------------------------- The Fort Worth Chamber and Dallas Regional Chamber -- the two largest Chambers in the region -- held full board meetings, and the subject of American Airlines was discussed. Following those meetings, Fort Worth Chamber President and CEO Bill Thornton and Dallas Regional Chamber President and CEO Amb. James C. Oberwetter wish to speak as a single voice on the subject: "We are greatly concerned by the potential impact that American's union employees' support of U.S. Airways' intentions could have on both the bankruptcy proceedings and the local economy, and are opposed to any mergers prior to American exiting bankruptcy. While it may seem to some that this is an option, it's actually a damaging distraction that will disrupt American's thoughtful process already in place to preserve the most jobs in Dallas/Fort Worth, and the state of Texas, both now and once American has exited bankruptcy. American Airlines' brand equity stands alone. Aviation is a legacy industry in our region, and American's headquarters in Fort Worth and presence at DFW Airport brings international recognition to North Texas. The company has provided jobs for generations of residents who live in communities all across the region. In addition, American Airlines has benefited dozens of communities with charitable contributions. A merger risks losing all that, and more. The best outlook for all American employees is for the airline to remain independent and headquartered in North Texas. We urge the creditors and unions working with American to not be distracted by the efforts of other carriers to disrupt the proceedings. Allow the bankruptcy process to run its course. American's management has the exclusive right to submit a plan of reorganization until late September. Completing this essential step is in the best interests of American's employees, creditors, Fort Worth, Dallas and all the communities served by American Airlines." About the Fort Worth Chamber The Fort Worth Chamber of Commerce, with more than 2,000 member businesses, is the largest chamber in the Tarrant County, Texas area. About the Dallas Regional Chamber The Dallas Regional Chamber is the area's leading membership- driven business organization committed to promoting economic prosperity by leading economic development, driving improvements in public education, influencing public policy, and catalyzing and advocating for regional partnerships. 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, Esq., John Lyons, Esq., Felecia Perlman, Esq., and Jay Goffman, Esq., 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 BIO: Sherb & Co. Raises Going Concern Doubt ---------------------------------------------------- American Bio Medica Corporation filed on April 16, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. Sherb & Co., LLP, in New York, N.Y., expressed substantial doubt about American Bio's ability to continue as a going concern. The independent auditors noted that the Company has incurred recurring operating losses and will have to obtain additional financing and or refinance certain debts maturing in 2012. The Company reported a net loss of $345,000 on $9.27 million of revenues for 2011, compared with a net loss of $750,000 on $10.42 million of revenues for 2010. The Company's balance sheet at Dec. 31, 2011, showed $5.64 million in total assets, $3.27 million in total liabilities, and stockholders' equity of $2.37 million. A copy of the Form 10-K is available for free at: http://is.gd/b4nQ11 Kinderhook, New York-based American Bio Medica Corporation develops, manufactures and sells immunoassay tests, primarily for the immediate, point of collection testing ("POCT") for drugs of abuse ("DOA") in urine and oral fluids. In addition to the manufacture and sale of DOA testing products, the Company provides bulk test strip contract manufacturing services for other POCT companies. AVION POINT: Court Converts Case to Chapter 7 --------------------------------------------- The U.S. Bankrupcy Court converted the Chapter 11 cases of Avion Point West, LLC, and Orlando Country Aviation Services, Inc., to a liquidation under Chapter 7 of the Bankruptcy Code. As reported in the Troubled Company Reporter on April 5, 2012, the Debtors asked the Court to dismiss their Chapter 11 cases, explaining that: a. their plan is dependent upon the sale of Avion Point West LLC's property to the City of Apopka; b. there has been little or no progress towards a sale; and c. accordingly, their plan cannot be confirmed. The Court was scheduled to convene a combined hearing on April 4, 2012, to consider adequacy of the Disclosure Statement and the confirmation of the Debtors' Amended Plan of Reorganization dated Jan. 30, 2012. Under the Plan, the Debtors were to (i) continue to work with the City of Apopka for the sale of the Avion property and the development of the Orlando Apopka Airport for 12 months after consummation; and (ii) if the sale to the City of Apopka does not close within 12 months after the Effective Date, the property of both OCA and Avion will be sold at auction. Each allowed secured claim will have the right to credit bid according to their priority on the relevant property. A full-text copy of the Amended Disclosure Statement is available for free at http://bankrupt.com/misc/AVION_POINT_ds_amended.pdf About Avion Point West Based in Longwood, Florida, Avion Point West LLC and its affiliate, Orlando Country Aviation Services Inc., filed for Chapter 11 bankruptcy protection (Bank. M.D. Fla. Case Nos. 11-10364 and 11-10365) on July 8, 2011. Judge Karen S. Jennemann presides over the Debtors' cases. Frank M. Wolff, Esq., at Wolff Hill McFarlin & Herron PA, represents the Debtor. In its schedules, the Debtor disclosed $18,075,314 in total assets and $9,238,057 in total debts. The petitions were signed by James PA Thompson, the managing member. Mr. Thompson is the developer of Orlando Apopka Airport in northwest Orange County. During the past decade, Mr. Thompson has transformed Orlando Apopka Airport, on U.S. Highway 441 between Plymouth and Zellwood, from an old airfield called Orlando Country Airport into a complex of hangar condominiums whose owners now control the facility. AVISTAR COMMUNICATIONS: Incurs $1.4 Million Net Loss in Q1 ---------------------------------------------------------- Avistar Communications Corporation reported a net loss of $1.44 million on $2.49 million of total revenue for the three months ended March 31, 2012, compared with a net loss of $2.42 million on $1.39 million of total revenue for the same period a year ago. The Company's balance sheet at March 31, 2012, showed $3.26 million in total assets, $17.31 million in total liabilities, and a $14.05 million total stockholders' deficit. Bob Kirk, CEO of Avistar, said, "Over the past few years, leading research firms have forecasted significant growth within the key markets on which Avistar focuses. Specifically, Frost & Sullivan has forecasted that the Unified Communications (UC) market would grow from 2.1 million users in 2009 to 33.6 million users in 2014. In addition, Gartner has forecasted that the virtual desktop infrastructure (VDI) market would grow from $1.5 billion in 2009 to $65.7 billion in 2014, with close to 75 million devices in use during this time. With Avistar's strategy focused both on the opportunities within, and the intersection of, each of these market segments, we are seeing the quality and quantity of clients and partners that are emerging from these market segments increase. Our agreement with Citrix, our growing relationships with many other leading technology partners and the increased number of our enterprise clients are all evidence of this." A copy of the press release is available for free at: http://is.gd/VYnt2k About Avistar Communications Headquartered in San Mateo, California, Avistar Communications Corporation (Nasdaq: AVSR) -- http://www.avistar.com/-- holds a portfolio of 80 patents for inventions in video and network technology and licenses IP to videoconferencing, rich-media services, public networking and related industries. Current licensees include Sony Corporation, Sony Computer Entertainment Inc. (SCEI), Polycom Inc., Tandberg ASA, Radvision Ltd. and Emblaze-VCON. The Company reported a net loss of $6.43 million in 2011, compared with net income of $4.45 million during the prior year. BAUSCH & LOMB: Moody's Rates New Secured Credit Facilities 'B1' --------------------------------------------------------------- Moody's Investors Service assigned B1 ratings to Bausch & Lomb Incorporated's new secured bank credit facilities and affirmed the company's existing ratings including its B2 Corporate Family Rating and Probability of Default Rating and its SGL-2 speculative grade liquidity rating. Ratings are subject to Moody's review of final documentation. The rating outlook is stable. Bausch's existing US and European bank facility ratings are expected to be withdrawn at the close of this transaction. Ratings assigned: Bausch & Lomb, Incorporated B1, LGD3, 39% new $2.028 Billion US Senior Secured Term Loan B1, LGD3, 39% new $500 Million US Senior Secured Revolver B1, LGD3, 39%, new $350-Mil. Senior Secured Delayed Draw Term Loan Bausch & Lomb, B.V. B1, LGD3, 39% new $600 Million European Senior Secured Term Loan Ratings affirmed: Bausch & Lomb, Incorporated B2 Corporate Family Rating B2 Probability of Default Rating Caa1, LGD6, 91% Senior Unsecured Notes SGL-2 Speculative Grade Liquidity Rating Ratings Rationale "Although debt levels will rise with this bank debt refinancing, Bausch is in a better position to deleverage with stronger core sales as well as potential benefits from recent acquisitions," said Diana Lee, a Moody's Senior Credit Officer. A portion of proceeds from these new bank facilities will be used to help finance planned transactions including the acquisition of ISTA Pharmaceuticals and the exercise of an option to acquire all outstanding remaining shares of Technolas Perfect Vision (TPV). Bausch's B2 Corporate Family Rating reflects the company's high leverage and weak credit metrics, which both improved following the 2007 LBO, but will initially deteriorate following a new bank offering. Based on recent performance, without synergies, debt/EBITDA is expected to increase by about one and a half turns after including incremental debt. Moody's expects metrics to again improve as Bausch benefits from new acquisitions and better performance in existing product areas. The ratings also reflect large competitors in the eyecare space including Alcon (Novartis), AMO (Abbott) and Vistakon (J&J). That said, Bausch benefits from relatively large size and scale compared to other "B" rated issuers, as well as solid brand equity and geographic diversity. The stable outlook reflects Moody's expectations that the company will continue to achieve at least moderate overall growth rates, and improved cash flow and EBITDA, which will help reduce leverage. The ratings could be upgraded if growth rates, profitability and cash flow improve and, along with prudent financial policies, Bausch can sustain debt/EBITDA under 5.0 times and FCF/debt above 5.0%. The ratings could be downgraded if growth rates decline, if free cash flow is negative or if leverage does not improve. Any material debt-financed acquisitions or litigation payouts resulting in weaker liquidity or debt/EBITDA sustained at levels above 6.0x could support a downgrade. The SGL-2 speculative grade liquidity rating reflects good liquidity, supported by expectations of cash flow that is likely to cover operating needs, the presence of a moderate-sized $500 million senior secured revolver and sufficient cushion under a new net leverage covenant. The principal methodology used in rating Bausch & Lomb was the Global Medical Products and Device Industry Methodology published in October 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Headquartered in Rochester, New York, Bausch & Lomb Incorporated is a leading worldwide provider of eye care products, including contact lens, lens care, ophthalmic pharmaceuticals, and surgical products. Bausch & Lomb was acquired by Warburg Pincus, a private equity firm in October 2007. BERNARD L. MADOFF: Trustee Sues to Halt Lawsuit in Luxembourg ------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the trustee for Bernard L. Madoff Investment Securities Inc. filed a lawsuit April 19 in bankruptcy court in New York to prevent an investor in a Madoff feeder fund from suing him in a court in Luxembourg. According to the report, the dispute involves the liquidators for Access Management Luxembourg SA, who were sued in the District Court of Luxembourg by the liquidators of Luxalpha SICA V. The Luxalpha liquidators contend their investors weren't aware that investments with Access were turned over to Madoff. The Access liquidators filed what's known as a third-party complaint against Madoff to recover what could be billions in damages owing to Luxalpha, according to papers filed in bankruptcy court by Irving Picard, the Madoff trustee. The report relates Mr. Picard wants the bankruptcy judge in New York to enjoin the Access liquidators by compelling them to stop the suit in Luxembourg against the Madoff firm. Mr. Picard says the so-called automatic stay in U.S. bankruptcy law extends to actions taken anywhere in the world. Mr. Rochelle recounts that Mr. Picard sued Access in November 2010 along with other defendants. The suit was removed to the district court, with some claims dismissed against some of the defendants. The new lawsuit is Picard v. Access Management Luxembourg SA (In re Bernard L. Madoff Investment Securities LLC), 12-01563, U.S. Bankruptcy Court, Southern District of New York (Manhattan). About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.) As of Feb. 17, 2012 and in the 38 months since his appointment, the SIPA Trustee has recovered or entered into agreements to recover more than $9 billion, representing roughly 52% of the roughly $17.3 billion in principal estimated to have been lost in the Ponzi scheme by BLMIS customers who filed claims. The recoveries exceed prior restitution efforts related to Ponzi schemes both in terms of dollar value and percentage of stolen funds recovered. Pro rata distributions from the Customer Fund to BLMIS customers whose claims have been allowed by the SIPA Trustee totaled $325.7 million. Mr. Picard has filed 1,000 lawsuits seeking $100 billion from banks such as HSBC Holdings Plc and JPMorgan Chase & Co. The trustee has seen more than $28 billion of his claims tossed by district judges. BROWNIE'S MARINE: Wesley Armstrong Resigns from Board ----------------------------------------------------- Wesley Armstrong advised Brownie's Marine Group, Inc., that he was resigning from serving as a member of the Company's board of directors effective April 18, 2012. Mr. Armstrong's resignation was not the result of any disagreement with the Company on any matters relating to the Company's operations, policies or practices. About Brownie's Marine Brownie's Marine Group, Inc. (OTC BB: BWMG) -- http://www.brownismarinegroup.com/-- designs, tests, manufactures and distributes recreational hookah diving, yacht based scuba air compressor and nitrox generation systems, and scuba and water safety products. BWMG sells its products both on a wholesale and retail basis, and does so from its headquarters and manufacturing facility in Fort Lauderdale, Florida. The Company reported a net loss of $3.77 million in 2011, compared with a net loss of $1.18 million in 2010. The Company's balance sheet at Dec. 31, 2011, showed $1.97 million in total assets, $2.74 million in total liabilities and a $762,401 total stockholders' deficit. For 2011, L.L. Bradford & Company, LLC, in Las Vegas, Nevada, noted that the Company has a working capital deficiency and recurring losses and will need to secure new financing or additional capital in order to pay its obligations, all of which raise substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning According to the Form 10-K for the period ended Dec. 31, 2011, if the Company fails to raise additional funds when needed, or do not have sufficient cash flows from sales, the Company may be required to scale back or cease operations, liquidate its assets and possibly seek bankruptcy protection. BUFFETS INC: Amends Schedules of Assets and Liabilities ------------------------------------------------------- Buffets, Inc., filed with the U.S. Bankruptcy Court for the District of Delaware amended schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $384,810,974 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $300,152,157 E. Creditors Holding Unsecured Priority Claims $148,921 F. Creditors Holding Unsecured Non-priority Claims $53,224,180 ----------- ----------- TOTAL $384,810,974 $353,525,258 As reported in the Troubled Company Reporter on March 14, 2012, Buffets previously disclosed $384,810,974 in assets and $353,498,404 in liabilities. Debtor-affiliate OCB Restaurant Company, LLC, also filed its amended schedules disclosing: Company Assets Liabilities ------- ------ ----------- OCB Restaurant Company, LLC $79,229,064 $349,369,683 Full-text copies of the amended schedules are available for free at: http://bankrupt.com/misc/BUFFETS_buffetsincsal.pdf http://bankrupt.com/misc/BUFFETS_ocbsal.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. In its schedules Buffets Inc. disclosed $384,810,974 in assets and $353,498,404 in liabilities. 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. BUILDERS FIRSTSOURCE: Posts $19.2 Million Net Income in Q1 ---------------------------------------------------------- Builders FirstSource, Inc., reported $19.18 million on $219.38 million of sales for the three months ended March 31, 2012, compared with a net loss of $21.25 million on $162.82 million of sales for the same period a year ago. The Company's balance sheet at March 31 2012, showed $495.31 million in total assets, $412.87 million in total liabilities and $82.44 million in total stockholders' equity. "Sales for the first quarter of 2012 were $219.4 million, an increase of 34.7 percent when compared to the first quarter of 2011. This marks our third consecutive quarter with year-over- year sales growth greater than 20 percent," said Builders FirstSource Chief Executive Floyd Sherman. "Our sales growth continues to outpace construction activity as actual U.S. single- family housing starts were up only 16.8 percent compared to the same quarter last year and U.S. single-family units under construction actually decreased 5.0 percent over the same period. Commodity lumber prices for the current quarter were, on average, relatively consistent with those during the first quarter of 2011. When combined, these factors indicate we continue to achieve significant market share gains." A copy of the press release is available for free at: http://is.gd/B9PhAr About Builders FirstSource Headquartered in Dallas, Texas, Builders FirstSource Inc. -- http://www.bldr.com/-- supplies and manufactures building products for residential new construction. The Company operates in 9 states, principally in the southern and eastern United States, and has 55 distribution centers and 51 manufacturing facilities, many of which are located on the same premises as its distribution facilities. Builders FirstSource reported a net loss of $95.51 million on $700.34 million of sales for the year ended Dec. 31, 2010, compared with a net loss of $61.85 million on $677.88 million of sales during the prior year. The Company also reported a net loss of $48.29 million for the nine months ended Sept. 30, 2011. * * * Builders FirstSource Inc. carries 'CCC+' issuer credit ratings, with negative outlook, from Standard & Poor's. S&P affirmed the ratings in April 2011. "The ratings affirmation reflects our belief that Builders FirstSource will likely continue to generate negative free cash flow over the upcoming year, given the ongoing weakness in new residential housing markets. While the company's liquidity position, which we currently view as adequate, is likely to somewhat improve due to the increased cash balances following the planned refinancing and the extended maturity of its revolving credit facility, it will likely continue to rely primarily on its cash balances to meet its interest and operating obligations until total housing starts improve at least 35% from 2010's level. If housing starts were to remain at its recent historically low levels, we believe the proposed refinancing would allow Builders FirstSource to fund its anticipated cash shortfall for approximately two years. The ratings also reflect what Standard & Poor's Ratings Services considers to be the company's vulnerable business profile given its significant exposure to highly cyclical new residential construction markets and its narrow end-market focus and geographic scope," S&P elaborated. In April 2011, Moody's Investors Service assigned 'Caa2' corporate family rating and probability of default ratings to Builders FirstSource. Moody's said the 'Caa2' Corporate Family Rating results from very weak operating performance due to ongoing pressures in the residential new construction end market, the primary driver of BLDR's revenues. Although some areas within BLDR's primary geographic markets of North Carolina and South Carolina may have some pockets of strength, overall, Moody's does not expect substantial improvement in new housing starts in 2011 relative to 2010. The company's products are highly price sensitive to competition and ongoing market conditions, making it difficult for it to pass on substantial price increases. It is also exposed to fluctuating costs associated with lumber, its major raw material, adding to earnings volatility. For 2010, adjusted operating margins are inadequate at negative 7.6% and free cash flow-to-debt is insufficient at negative 15.3% (adjusted per Moody's methodology). The company's inability to generate positive earnings will result in very weak credit metrics for the foreseeable future and will require cash to fund operating shortfalls. CAESARS ENTERTAINMENT: Board OKs 231,918 Option Grant to CEO ------------------------------------------------------------ Caesars Entertainment Corporation was acquired by affiliates of Apollo Global Management, LLC, and affiliates of TPG Capital, LP, on Jan. 28, 2008. As part of the Acquisition, on Jan. 27, 2008, the Company entered into that certain Rollover Option Agreement with Gary Loveman, the Company's Chairman of the Board, Chief Executive Officer and President. Pursuant to the Rollover Agreement, Mr. Loveman agreed to not cash out in the Acquisition an option to purchase common stock of the Company, but instead convert that option into the right to purchase 133,133 shares of common stock of the Company at an exercise price of $25.00 per share. In February 2012, the Company effected a 1.742-for-one split of its common stock which adjusted the number of shares and exercise price under the Rollover Agreement, and therefore the Rollover Agreement currently allows Mr. Loveman to purchase 231,918 shares of the Company's common stock at an exercise price of $14.35 per share. The option to purchase common stock pursuant to the Rollover Agreement is fully vested. The Rollover Agreement has an expiration date of June 17, 2012. On April 16, 2012, the Human Resources Committee of the Board of Directors of the Company approved the award of an option to purchase of 231,918 shares of common stock pursuant to the Company's 2012 Performance Incentive Plan to replace the option to purchase common stock under the Rollover Agreement. Pursuant to the terms of the Plan, the exercise price under the Option Grant is $14.35, which is greater than the closing price of the Company's common stock of $13.83 per share on the NASDAQ Global Market Reporting System on April 16, 2012. The Option Grant is fully vested, and has an expiration date of April 16, 2022. In addition, Mr. Loveman and the Company agreed to terminate the Rollover Agreement as of April 16, 2012. The HRC determined to award Mr. Loveman the Option Grant in order to allow him more time to realize the value of the options under the Rollover Agreement. About Caesars Entertainment Caesars Entertainment Corp., formerly Harrah's Entertainment Inc. --http://www.caesars.com/-- is one of the world's largest casino companies, with annual revenue of $4.2 billion, 20 properties on three continents, more than 25,000 hotel rooms, two million square feet of casino space and 50,000 employees. Caesars casino resorts operate under the Caesars, Bally's, Flamingo, Grand Casinos, Hilton and Paris brand names. The Company has its corporate headquarters in Las Vegas. Harrah's announced its re-branding to Caesar's on mid-November 2010. The Company reported a net loss of $666.70 million in 2011, and a net loss of $823.30 million in 2010. The Company's balance sheet at Dec. 31, 2011, showed $28.51 billion in total assets, $27.46 billion in total liabilities, and $1.05 billion in total stockholders' equity. * * * As reported by the TCR on March 28, 2012, Moody's Investors Service upgraded Caesars Entertainment Corp's Corporate Family Rating (CFR) and Probability of Default Rating both to Caa1 from Caa2. The report says the upgrade of Caesars' ratings reflects very good liquidity, an improving operating outlook for gaming in a number of the company's largest markets that is expected to drive earnings growth, the completion of a bank amendment that resulted in the extension of debt maturities to 2018 from 2015, and the public listing of the company's equity that increases financial flexibility by providing it with another potential source of capital. CARILLON PLACE: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Carillon Place, Ltd. fdba Creative Choice Homes XII, Ltd. 8895 North Military Trail, Suite 101B Palm Beach Gardens, FL 33410 Bankruptcy Case No.: 12-19398 Chapter 11 Petition Date: April 18, 2012 Court: U.S. Bankruptcy Court Southern District of Florida (West Palm Beach) Judge: Erik P. Kimball Debtor's Counsel: Eric A. Rosen, Esq. ROSEN & WINIG, P.A. 2925 PGA Boulevard, #100 Palm Beach Gardens, FL 33410 Tel: (561) 799-6040 Fax: (561) 799-4047 E-mail: erosen@rosenwinig.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/flsb12-19398.pdf The petition was signed by Evan Williams, president, Carillon Place, Inc., general partner. CATALYST PAPER: Obtains June 30 Extension of CCAA Stay Order ------------------------------------------------------------ Catalyst Paper has obtained an order from the Supreme Court of British Columbia extending its protection under the Companies' Creditors Arrangement Act to June 30, 2012. This extension will provide the company with additional time to pursue restructuring alternatives including the previously announced plan of compromise and arrangement which is to be considered at creditors' meetings to be held on May 2, 2012. "We have been working with all parties to complete our exit from CCAA in the most effective manner and continue to make progress," said Kevin J. Clarke, President and Chief Executive Officer. "In the meantime, our production, sales and service team is fully focused on maintaining operational commitments with the same care and attention as always." The company's debtor-in possession (DIP) financing continues to be available to the company and, combined with the company's operating revenue, is expected to continue to provide sufficient liquidity to meeting ongoing obligations to employees and suppliers and ensure that normal operations continue during the restructuring process. About Catalyst Paper Catalyst Paper Corp. -- http://www.catalystpaper.com/-- manufactures diverse specialty mechanical printing papers, newsprint and pulp. Its customers include retailers, publishers and commercial printers in North America, Latin America, the Pacific Rim and Europe. With four mills, located in British Columbia and Arizona, Catalyst has a combined annual production capacity of 1.9 million tons. The Company is headquartered in Richmond, British Columbia, Canada and its common shares trade on the Toronto Stock Exchange under the symbol CTL. Catalyst on Dec. 15, 2011, deferred a US$21 million interest payment on its outstanding 11.00% Senior Secured Notes due 2016 and Class B 11.00% Senior Secured Notes due 2016 due on Dec. 15, 2011. Catalyst said it was reviewing alternatives to address its capital structures and it is currently in discussions with noteholders. Perella Weinberg Partners served as the financial advisor. In early January 2012, Catalyst entered into a restructuring agreement, which will see its bondholders taking control of the company and includes an exchange of debt for equity. The agreement said it would slash the company's debt by C$315.4 million ($311 million) and reduce its cash interest expenses. Catalyst also said it will continue to "operate and satisfy" its obligations to customers, trade creditors, employees and retirees in the ordinary course of business during the restructuring process. On Jan. 17, 2012, Catalyst applied for and received an initial court order under the Canada Business Corporations Act (CBCA) to commence a consensual restructuring process with its noteholders. Affiliate Catalyst Paper Holdings Inc., filed for creditor protection under Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 12-10219) on the same day and sought recognition of the Canadian proceedings. Catalyst joins a line of paper producers that have succumbed to higher costs, increased competition from Asia and Europe, and falling demand as more advertisers and readers move online. In 2011, Cerberus Capital-backed NewPage Corp. filed for bankruptcy protection, followed by SP Newsprint Co., owned by newsprint magnate and fine art collector Peter Brant. In December, Wausau Paper said it will close its Brokaw mill in Wisconsin, cut 450 jobs and exit its print and color business. The Supreme Court of British Columbia granted Catalyst creditor protection under the CCAA until April 30, 2012. As of Dec. 31, 2011, the Company had C$737.6 million in total assets and C$1.35 million in total liabilities. CENTRAL FEDERAL: Board Declares 1-for-5 Reverse Stock Split ----------------------------------------------------------- Central Federal Corporation, the parent company of CFBank, announced that the Board of Directors has declared a one-for-five reverse stock split, effective May 4, 2012, in accordance with the authority granted to the Board by stockholders on Oct. 20, 2011. In exchange for every five shares of Central Federal Corporation common stock currently owned, stockholders will receive one new share of Central Federal Corporation common stock. The purpose of the reverse stock split is to increase the likelihood that the Company can remain eligible to have its common stock listed on Nasdaq by raising the bid price of the Company's common stock to a level well above the $1.00 per share minimum. On July 13, 2011, the Company had received notice from Nasdaq that it did not comply with the minimum bid price requirement for continued listing on The Nasdaq Capital Market because the bid price for its common stock had fallen below $1.00 per share for the 30 consecutive business days prior to the date of that notice. On Jan. 10, 2012, it was advised that The Nasdaq Stock Market had determined that the Company was eligible for an additional 180 day calendar period, until July 9, 2012, to regain compliance with the minimum closing bid price requirement for continued listing. To regain compliance, the closing bid price of the Company's common shares must meet or exceed $1.00 per share for at least ten consecutive business days prior to July 9, 2012. About Central Federal Fairlawn, Ohio-based Central Federal Corporation (Nasdaq: CFBK) is the holding company for CFBank, a federally chartered savings association formed in Ohio in 1892. CFBank has four full-service banking offices in Fairlawn, Calcutta, Wellsville and Worthington, Ohio. Central Federal's balance sheet at Sept. 30, 2011, showed $265.4 million in total assets, $254.0 million in total liabilities, and stockholders' equity of $11.4 million. Regulatory Matters On May 25, 2011, Central Federal Corporation and CFBank each consented to the issuance of an Order to Cease and Desist (the Holding Company Order and the CFBank Order, respectively, and collectively, the Orders) by the Office of Thrift Supervision (OTS), the primary regulator of the Holding Company and CFBank at the time the Orders were issued. The Holding Company Order required it, among other things, to: (i) submit by June 30, 2011, a capital plan to regulators that establishes a minimum tangible capital ratio commensurate with the Holding Company's consolidated risk profile, reduces the risk from current debt levels and addresses the Holding Company's cash flow needs; (ii) not pay cash dividends, redeem stock or make any other capital distributions without prior regulatory approval; (iii) not pay interest or principal on any debt or increase any Holding Company debt or guarantee the debt of any entity without prior regulatory approval; (iv) obtain prior regulatory approval for changes in directors and senior executive officers; and (v) not enter into any new contractual arrangement related to compensation or benefits with any director or senior executive officer without prior notification to regulators. The CFBank Order required CFBank to have by Sept. 30, 2011, and maintain thereafter, 8% Tier 1 (Core) Capital to adjusted total assets and 12% Total Capital to risk weighted assets. CFBank will not be considered well-capitalized as long as it is subject to individual minimum capital requirements. CFBank did not comply with the higher capital ratio requirements by the Sept. 30, 2011 required date. CENTRAL FEDERAL: Plans to Restructure Terms of Rights Offering -------------------------------------------------------------- Central Federal Corporation, the parent company of CFBank, announced that the Board of Directors has determined to restructure the terms of its rights offering. The Company intends to re-file an amended Registration Statement with the SEC which will simplify the terms of the rights offering and public offering and update the Company's financial information. As soon as the Company completes the registration process, the Company will send stockholders a revised prospectus and related materials. Eloise L. Mackus, CEO, commented, "We thank you for your patience as we work to recapitalize Central Federal Corporation." As reported by the TCR on March 9, 2012, Central Federal filed with the SEC a free writing prospectus relating to the offering of up to 30 million shares of common stock of the Company. The offer is expected to have net proceeds of $21.3 million to $28.4 million. About Central Federal Fairlawn, Ohio-based Central Federal Corporation (Nasdaq: CFBK) is the holding company for CFBank, a federally chartered savings association formed in Ohio in 1892. CFBank has four full-service banking offices in Fairlawn, Calcutta, Wellsville and Worthington, Ohio. Central Federal's balance sheet at Sept. 30, 2011, showed $265.4 million in total assets, $254.0 million in total liabilities, and stockholders' equity of $11.4 million. Regulatory Matters On May 25, 2011, Central Federal Corporation and CFBank each consented to the issuance of an Order to Cease and Desist (the Holding Company Order and the CFBank Order, respectively, and collectively, the Orders) by the Office of Thrift Supervision (OTS), the primary regulator of the Holding Company and CFBank at the time the Orders were issued. The Holding Company Order required it, among other things, to: (i) submit by June 30, 2011, a capital plan to regulators that establishes a minimum tangible capital ratio commensurate with the Holding Company's consolidated risk profile, reduces the risk from current debt levels and addresses the Holding Company's cash flow needs; (ii) not pay cash dividends, redeem stock or make any other capital distributions without prior regulatory approval; (iii) not pay interest or principal on any debt or increase any Holding Company debt or guarantee the debt of any entity without prior regulatory approval; (iv) obtain prior regulatory approval for changes in directors and senior executive officers; and (v) not enter into any new contractual arrangement related to compensation or benefits with any director or senior executive officer without prior notification to regulators. The CFBank Order required CFBank to have by Sept. 30, 2011, and maintain thereafter, 8% Tier 1 (Core) Capital to adjusted total assets and 12% Total Capital to risk weighted assets. CFBank will not be considered well-capitalized as long as it is subject to individual minimum capital requirements. CFBank did not comply with the higher capital ratio requirements by the Sept. 30, 2011 required date. CHINA CEETOP.COM: Clement C.W. Chan Raises Going Concern Doubt -------------------------------------------------------------- China Ceetop.com, Inc., filed on April 16, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. Clement C. W. Chan & Co., in Hong Kong, expressed substantial doubt about China Ceetop.com's ability to continue as a going concern. The independent auditors noted that the Company incurred a net loss of $1.65 million for the year ended Dec. 31, 2011, and has an accumulated deficit of $4.32 million at Dec. 31, 2011. The Company reported a net loss of $1.65 million on $12.86 million of sales for 2011, compared with a net loss of $1.59 million on $14.77 million of sales for 2010. The Company's balance sheet at Dec. 31, 2011, showed $1.27 million in total assets, $338,281 in total current liabilities, and stockholders' equity of $931,500. A copy of the Form 10-K is available for free at: http://is.gd/N5ZeKf Shenzhen, China-based China Ceetop.com, Inc., an Oregon-registered corporation, is a leading Business-to-Consumer ("B2C") e-commerce company. The Company owns and operates the online platform: http://www.ceetop.com/ The Company mainly focuses on selling Computers / Communications/Consumer ("3C") products online and providing a trading information platform for both buyers and sellers as software as a service ("SaaS"). The Company carries a wide range of products in assorted categories, including mainstream digital products, home appliances, kitchen appliances, personal care, and lifestyle products, etc. under well-known international and Chinese brands. CHINA GREEN ENERGY: PKF Raises Going Concern Doubt -------------------------------------------------- China Green Energy Industries, Inc., filed on April 16, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. PKF, in San Diego, Calif., expressed substantial doubt about China Green Energy's ability to continue as a going concern. The independent auditors noted that the Company has experienced negative cash flows from operations and is dependent upon future financing in order to meet its planned operating activities. The Company reported a net loss of $2.31 million on $24.91 million of revenues for 2011, compared with net income of $4.14 million on $28.59 million of revenues for 2010. The Company's balance sheet at Dec. 31, 2011, showed $50.12 million in total assets, $46.40 million in total current liabilities, and stockholders' equity of $3.72 million. A copy of the Form 10-K is available for free at: http://is.gd/xTtH8S Located in Changzhou City, Jiangsu Province, China, China Green Energy Industries, Inc., manufactures and distributes clean technology-based consumer products, including light electric vehicles, or LEVs, and cryogen-free refrigerators. The Company also manufactures and distributes network and High-Definition Multimedia Interface, or HDMI, cables. CHINA SHENGHUO: Gets Deficiency Notice From NYSE Amex ----------------------------------------------------- China Shenghuo Pharmaceutical Holdings, Inc. disclosed that on April 17, 2012, it received a deficiency letter from the NYSE Amex LLC stating that the Company has resolved the continued listing deficiency with respect to Section 1003(a)(i) of the AMEX's Company Guide (the "Company Guide") referenced in AMEX's letter dated September 22, 2010. However, as a result of the Company sustaining losses which are so substantial in relation to its overall operations or its existing financial resources, or its financial condition has become so impaired that it appears questionable, in the opinion of AMEX, as to whether such issuer will be able to continue operations and/or meet its obligations as they mature, the Company is no longer in compliance with Section 1003(a)(iv) of the Company Guide. The Deficiency Letter states that, in order to maintain its AMEX listing, the Company must submit a plan of compliance by May 1, 2012, advising AMEX how it intends to regain compliance with Section 1003(a)(iv) of the Company Guide by July 2, 2012. If the Company does not submit such a plan or if the plan is not accepted by AMEX, the Company would be subject to delisting procedures as set forth in Section 1010 and part 12 of the Company Guide. In view of, among other things, the belief of the Board of Directors that under the Company's current circumstances, it is not reasonably practicable for the Company to establish and implement a plan of compliance that would satisfy AMEX's continued listing requirements, the substantial financial burden on the Company as a result of its status as a U.S. public company, the Company's inability to raise capital in the United States and the minimal benefits derived from being a U.S. public company, the Board of Directors of the Company determined on April 19, 2012 that it is in the best interest of the Company to voluntarily delist the Company's common stock from AMEX and deregister its shares with U.S. Securities & Exchange Commission (the "SEC"). In connection therewith, the Company notified AMEX on April 20, 2012 of the Company's intention to file a Form 25 - Notification of Removal from Listing and/or Registration under Section 12(b) of the Securities Exchange Act of 1934, with the SEC on or about April 30, 2012. It is expected that the delisting will take effect on or about May 10, 2012. Accordingly, the Company expects that the last day of trading of its common stock on AMEX will be on or about May 10, 2012. On the effective date of the delisting, the Company plans to file a Form 15 with the SEC to suspend its duty to file reports under Section 15(d) of the Exchange Act. Upon filing of the Form 15, the Company's obligation to file certain reports with the SEC, including reports on Forms 10-K, 10-Q and 8-K, will immediately be suspended. After the Company has filed the Form 15, its common stock is anticipated to be available for trading on the OTC Pink Sheets, although there can be no assurances that any trading market for the Company's securities will exist, and the liquidity of such trading market may be very limited. About China Shenghuo Located in Kunming National Economy & Technology Developing District, China, China Shenghuo Pharmaceutical Holdings, Inc., was incorporated in the State of Delaware on May 24, 2005. The Company is primarily engaged in the research, development, manufacture, and marketing of pharmaceutical, nutritional supplement and cosmetic products. Almost all of the Company's products are derived from the medicinal herb Panax notoginseng, also known as Sanqi, Sanchi or Tienchi. Panax notoginseng is a greyish-brown or greyish-yellow plant that only grows in a few geographic locations on earth, one of which is Yunnan Province in southwest China, where the Company's operations are located. The main root of Panax notoginseng is cylindrically shaped and is most commonly one-to-six centimeters long and one-to-four centimeters in diameter. Panax notoginseng saponins (PNS), the active ingredient in Panax notoginseng, is extracted from the plant using high-tech equipment and in accord with Good Manufacturing Practice ("GMP") standards. The Company's main product, Xuesaitong Soft Capsules, accounted for approximately 84.5% of the Company's sales for the year ended Dec. 31, 2011. CHINA MARKETING: Child Van Wagoner Raises Going Concern Doubt ------------------------------------------------------------- China Marketing Media Holdings, Inc., filed on April 16, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. Child Van Wagoner & Bradshaw, PLLC, in Salt Lake City, Utah, expressed substantial doubt about China Marketing's ability to continue as a going concern. The independent auditors noted that the Company has cash flow constraints and has suffered a large loss from operations. The Company reported a net loss of $6.76 million on $12.86 million of revenue for 2011, compared with net income of $4.34 million on $14.18 million of revenue for 2010. The Company's balance sheet at Dec. 31, 2011, showed $18.09 million in total assets, $3.13 million in total liabilities, and stockholders' equity of $14.96 million. A copy of the Form 10-K is available for free at: http://is.gd/SpFa6k Located in Beijing, China, China Marketing Media Holdings, Inc., was originally organized under the laws of the State of Texas on Oct. 29, 1999, under the name Brazos Strategies, Inc. It changed its name to Infolife, Inc., on July 16, 2003 and finally to China Marketing Media Holdings, Inc., on Feb. 7, 2006. China Marketing is a holding company and has no operations other than administrative matters and the ownership of its direct and indirect operating subsidiaries. Through its indirect Chinese subsidiaries, it is engaged in the business of selling magazines and advertising space in its magazines, providing sales and marketing consulting services and online sales of various consumer products. All of the Company's operations, assets, personnel, officers and directors are located in China. Currently, it publishes China Marketing magazine in China. CICERO INC: Chairman John Steffens Holds 42.6% Equity Stake ----------------------------------------------------------- Cicero Inc. agreed with (i) certain lenders of short and long term notes, including certain directors and significant shareholders of the Company, to convert $3,576,515 of principal and interest into 23,843,433 shares of the Company's common stock; and (ii) certain holders of the Company's Series B Preferred Stock, including certain directors and significant shareholders of the Company, to convert $264,800 of accrued Series B dividends into 1,765,329 shares of the Company's common stock. These amounts were converted at a price of $0.15 per share of common stock. As a result, the number of the Company's shares of common stock beneficially owned by John L. Steffens, the Company's Chairman of the Board, increased to 28,315,481 shares, and Mr. Steffen's overall all percentage of beneficial ownership of the Company's common stock increased from 24.4% to 42.6%. About Cicero Inc. Cary, N.C.-based Cicero, Inc., provides business integration software solutions and also provides technical support, training and consulting services as part of its commitment to providing customers with industry-leading solutions. The Company focuses on the customer experience management market with emphasis on desktop integration and business process automation with its Cicero XM(TM) products. Cicero XM enables the flow of data between different applications, regardless of the type and source of the application, eliminating redundant entry and costly mistakes. The Company has extended the maturity dates of several debt obligations that were due in 2011 to 2012, to assist with liquidity and may attempt to extend these maturities again if necessary. Despite the recent additions of several new clients, the Company continues to struggle to gain additional sources of liquidity on terms that are acceptable to the Company. The Company reported a net loss of $2.97 million in 2011, compared with a net loss of $459,000 in 2010. The Company's balance sheet at Dec. 31, 2011, showed $5.04 million in total assets, $14.66 million in total liabilities, and a $9.62 million total stockholders' deficit. CIRCLE ENTERTAINMENT: Bryan Bloom Reappointed as Director --------------------------------------------------------- The Huff Alternative Fund, as the holder of Circle Entertainment Inc.'s single share of outstanding Non-Voting Designated Preferred Stock, reappointed Bryan Bloom to serve as its director designee on the Company's Board of Directors in accordance with its rights under the Certificate of Designation for the Non-Voting Preferred Stock to fill the vacancy created by Huff on April 8, 2010, when it removed Mr. Bloom as its director designee. Accordingly, as of April 16, 2012, the number of directors on the Board has been increased from six to seven directors and Bryan Bloom has become a director. In accordance with the terms of the Non-Voting Designated Preferred Stock, at the written request of Huff, the Board is required to appoint Mr. Bloom to serve on each committee of the Board to the extent permissible under the applicable rules and regulations of the Securities and Exchange Commission or The NASDAQ Global Market, or applicable law. The Board has not received any that written request from Huff to appoint Mr. Bloom to serve on any committees of the Board. Mr. Bloom served as Huff's director designee on the Company's Board of Directors from May 13, 2008, until his aforesaid removal by Huff on April 8, 2010, and has served as counsel of W.R. Huff Asset Management Co. and its affiliates for the past eighteen years. He is a Trustee of the Adelphia Recovery Trust, was previously a director of CKx, Inc., and serves on the board of several private companies. About Circle Entertainment Circle Entertainment Inc. (CEXE.PK), formerly FX Real Estate and Entertainment Inc., owns 17.72 contiguous acres of land located at the southeast corner of Las Vegas Boulevard and Harmon Avenue in Las Vegas, Nevada. The Las Vegas Property is currently occupied by a motel and several commercial and retail tenants with a mix of short and long-term leases. On June 23, 2009, as a result of the default under the first mortgage loan, the first lien lenders had a receiver appointed to take control of the property. The Company is headquartered in New York City. The Company's Las Vegas subsidiary filed for Chapter 11 bankruptcy on April 21, 2010, and a plan of liquidation or reorganization will eventually be implemented under which the Company will surrender ownership of the Las Vegas Property. Under such a plan, it is extremely unlikely the Company will receive any material interest or benefit. The Company's balance sheet at Dec. 31, 2011, showed $6.20 million in total assets, $12.08 million in total liabilities, and a $5.87 million stockholders' deficit. L.L. Bradford & Company, LLC, in Las Vegas, Nevada, expressed substantial doubt about the Company's ability to continue as a going concern following the 2011 financial results. The independent auditors noted that the Company has limited available cash, has a working capital deficiency and will need to secure new financing or additional capital in order to pay its obligations. CONDOR INSURANCE: Official, Lawyer Are Liable for $314 Million -------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that a U.S. bankruptcy judge in Gulfport, Mississippi ruled that a former asset manager and a lawyer for Condor Insurance Ltd. are liable for $314.3 million. The liquidators sued Byron Tyghe Williams, the asset manager, and T. Alan Owen, a former lawyer, in November 2007. According to the report, U.S. Bankruptcy Judge Neil P. Olack found the former asset manager and the lawyer were liable in an opinion on April 11 because there were no disputes about the facts. They were held liable in part because some of their papers were submitted too late and without an excuse for tardiness. Judge Olack said the two assisted in transferring the bulk of Condor's assets just before bankruptcy when the company was insolvent or almost so. The two were held liable under Nevis law for dishonest assistance. The report notes that the suits in the bankruptcy court were made possible by a March 2010 ruling from the U.S. Court of Appeals in New Orleans. The appeals court ruled the foreign representatives from Nevis were entitled to bring fraudulent transfer suits in the Chapter 15 case based on foreign law without initiating a separate Chapter 7 or 11 case in the U.S. The case is Fogerty v. Condor Guaranty Inc. (In re Condor Insurance Ltd.), 07-05049, U.S. Bankruptcy Court, Southern District of Mississippi (Gulfport). The appeals court case was Fogerty v. Petroquest Resource Inc. (In re Condor Insurance Ltd.), 09-60193, U.S. Court of Appeals for the Fifth Circuit (New Orleans). About Condor Insurance Liquidators filed a petition for Chapter 15 protection on behalf of Condor Insurance Limited (Bankr. S.D. Miss. Case No. 07-51045) on July 26, 2007. Condor, an insurance company, was undergoing liquidation on the island of Nevis under proceedings akin to Chapter 7 in the U.S. The U.S. bankruptcy judge in March 2010 recognized the proceedings in Nevis as the "foreign main proceeding," which automatically halted creditor actions in the U.S. CONSTELLATION BRANDS: Fitch Raises Issuer Default Rating to 'BB+' ----------------------------------------------------------------- Fitch Ratings has upgraded the Issuer Default Rating (IDR) and debt ratings for Constellation Brands, Inc. (STZ) as follows: Constellation Brands, Inc. Long-term IDR upgraded to 'BB+' from 'BB'; Secured bank credit facility upgraded to 'BB+' from 'BB'; Senior unsecured notes upgraded to 'BB+' from 'BB'. The Rating Outlook is revised to Stable. This rating action affects approximately $3.1 billion of debt at Feb. 29, 2012. Additionally, Fitch has assigned a 'BB+' rating to the $600 million 6% notes due 2022 recently issued by STZ. The upgrade reflects STZ's significant free cash flow (FCF), reduced debt levels and largely internally funded share repurchases. STZ's ratings and outlook reflect the company's leading global market positions and well-known portfolio of wine, spirits and beer brands. The ratings balance the general stability of the company's operations, good operating margins and consistent free cash flow generation with its acquisitive nature and leverage, which has been declining. Fitch does not anticipate further upgrades to STZ's ratings at this point. Management would have to commit to and achieve investment grade metrics. Negative rating actions are possible if a significant and ongoing deterioration in operating results occur or the company engages in large debt financed acquisitions and/or share repurchases. A downgrade could also occur if Grupo Modelo (Modelo) unexpectedly terminates the Crown Imports JV and STZ fails to materially reduce debt during the three year termination period. The company generates a substantial amount of FCF as evidenced by its averaging over $450 million in FCF annually the past five years. Fitch believes STZ's expectation of producing between $425 million and $475 million in FCF in fiscal 2013 is very achievable. STZ has used a combination of FCF and divestitures to reduce debt to $3.1 billion from a peak of almost $5.3 billion at May 31, 2008. While Fitch does not anticipate further debt reduction, current debt levels are consistent with a 'BB+' rating given current operating earnings. STZ share repurchase program is expected to be largely funded by FCF. STZ recently announced a $1 billion share repurchase program that will be completed over the next two years. The program will commence after STZ completes its previous $500 million program under which the company had $86 million remaining at fiscal 2012 year end. Given STZ's share repurchase plans and expected FCF, Fitch sees debt levels flat to growing very modestly. STZ's North American shipment volume decreased 0.8% for the fiscal year ended Feb. 29, 2012 due to an overlap of the 2011 distributor inventory build as part of the company's U.S. distributor consolidation. Fitch anticipates wine category growth in calendar 2012 will be in the low single digits and expects STZ's volume growth to be in line with industry. Crown Imports had a good year with its depletions growing mid-single digits and domestic category depletion continuing to decline in the low single digits. Fitch forecasts 2012 U.S. beer category growth will be flat to down low single digits and expects Crown Imports volume to grow in the low single digits. Fitch believes this will translate into modest operating income growth and stable credit metrics. Credit measures for STZ are within Fitch's expectations. For the period ended Feb. 29, 2012, total debt to operating EBITDA plus equity income was 3.4 times (x), flat compared to the prior period. STZ has a stated leverage target range of 3x to 4x. Fitch includes the equity income from STZ's interest in the Crown Imports LLC JV in its leverage calculation since cash distributions are roughly equivalent and STZ exercises a considerable amount of control of Crown Imports LLC. Fitch estimates Funds Flow from Operations (FFO) Adjusted Leverage was 3.1x at Feb. 29, 2012, down from 4.0x, due in part to the favorable tax treatment from the sale of Australian and UK wine business. Operating EBITDA plus Equity Income to Interest Expense was 5.1x at Feb. 29, 2012, up from 4.8x for fiscal 2011. STZ's liquidity remains adequate. As of Nov. 30, 2011, the company had a liquidity position of $446.6 million including $390.8 million of availability under its revolving credit facility and $55.8 million of cash and equivalents. At Feb. 29, 2012, the company had $85.8 million of cash and equivalents. The company is facing substantially higher, but manageable maturities in fiscal 2013, 2014, and 2015 of $314.1 million, $314.1 million, and $599.7 million respectively. The company has largely addressed the next two years of maturities which are term loan payments with its $600 million issuance of senior unsecured notes. Modelo has the right to terminate the Crown Imports JV and import Modelo brands on its own starting in 2017 if Modelo informs STZ of its intent to terminate by the end of 2013. Otherwise the Crown Imports JV automatically renews for 10 more years. If Modelo terminates and utilizes another importer, STZ is entitled to 8x one year's EBIT of STZ's share of Crown Imports JV. Fitch does not expect Modelo to terminate the Crown Imports JV given the Modelo brands' strong performance. If Modelo does terminate the JV, Fitch expects STZ to be able to reduce debt with the three years of EBIT plus the potential 8x STZ's share of one year of Crown Imports JV's EBIT. Fitch believes the security of the credit facility, being equity in subsidiaries rather than hard assets, is relatively weak and therefore has chosen not to distinguish between the secured credit facility rating and the senior unsecured notes rating at the 'BB' level. STZ's capital structure does not provide an advantage structurally to any one issue. STZ is the issuer of all the company's notes outstanding and the borrower under its credit agreements for its facilities. CRET RESTORATION: Hearing on Case Dismissal Bid Reset for May 1 --------------------------------------------------------------- The hearing on a motion to dismiss the bankruptcy case of CRET Restoration, Inc. is re-scheduled for May 1, 2012, at 10:30 a.m. at Courtroom 3-C, Greenbelt. The hearing was previously set on April 4, 2012, at 2:30 p.m. at the same venue. CRET Restoration Inc., based in Fort Washington, Maryland, was placed in involuntary Chapter 11 bankruptcy (Bankr. D. Md. Case No. 12-10648) by creditors M. Evelyn Jones, A Powell Management LLC, CDM Associates Inc., and NKB Investment Group on Jan. 13, 2012. Judge Wendelin I. Lipp presides over the case. CYBERDEFENDER CORP: John Combias Ceases to Hold 5% Equity Stake --------------------------------------------------------------- In an amended Schedule 13G filing with the U.S. Securities and Exchange Commission, John A. Combias disclosed that, as of Dec. 31, 2011, he beneficially owns 125,000 shares of common stock of CyberDefender Corporation representing 0.44% based upon 28,624,302 shares of the Company's common stock outstanding. As reported by the TCR on Feb. 22, 2012, Mr. Combias reported beneficial ownership of 1,758,823 common shares or 6.14% equity stake. A copy of the amended filing is available for free at: http://is.gd/k4xhbI About CyberDefender Los Angeles, Calif.-based CyberDefender Corporation is a provider of remote LiveTech services and security and computer optimization software and to the consumer and small business market. The Company's mission is to bring to market advanced solutions to protect computer users against Internet viruses, spyware, identity theft and related security threats. The Company reported a net loss of $17.58 million on $39.88 million of total net revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $31.21 million on $31.93 million of total net revenue for the same period a year ago. In regulatory filings, the Company disclosed $7.96 million in total assets, $42.54 million in total liabilities, and a $34.58 million total stockholders' deficit, as of Sept. 30, 2011. CyberDefender Corporation filed for Chapter 11 protection (Bankr. D. Del. Case No. 12-10633) on Feb. 23, 2012. The Company, which estimated up to $10 million in assets and up to $50 million in liabilities as of the Chapter 11 filing, concurrently announced that it has entered into an asset purchase agreement with GR Match, an affiliate of Guthy-Renker, to sell substantially all of its assets to GR Match. GR Match has committed to provide up to $4.6 million in debtor-in- possession financing. XRoads Solutions Group, LLC serves as financial advisor to the Company and Pachulski Stang Ziehl & Jones LLP (James E. O'Neill) serves as bankruptcy counsel. As reported by the TCR on April 4, 2012, CyberDefender won approval to move ahead with a bankruptcy auction of its business. The Company has entered into an asset purchase agreement to sell substantially all assets to GR Match, an affiliate of Guthy- Renker, absent higher and better offers. CYBRDI INC: KCCW Accountancy Raises Going Concern Doubt ------------------------------------------------------- Cybrdi, Inc., filed on April 16, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. KCCW Accountancy Corp., in Diamond Bar, California, expressed substantial doubt about Cybrdi's ability to continue as a going concern. The independent auditors noted that the Company has incurred recurring losses, accumulated deficit, and working capital deficit at Dec. 31, 2011, and 2010. The Company reported a net loss of $347,000 on $546,000 of revenues for 2011, compared with a net loss of $538,700 on $819,700 of revenues for 2010. The Company's balance sheet at Dec. 31, 2011, showed $10.91 million in total assets, $5.81 million in total liabilities, and stockholders' equity of $5.10 million. A copy of the Form 10-K is available for free at: http://is.gd/EDvgvq Cybrdi, Inc., located in Xi'an, Shaanxi, People's Republic of China, is holding company incorporated with 80% equity in Chaoying Biotech, which is engaged in biotechnology manufacturing, and research and development. Through Chaoying Biotech, Cybrdi also controls SD Chaoying, a cultural and entertainment company, which is also developing a casino. DELTA PETROLEUM: Brower Piven Starts Class Suit for Share Buyers ---------------------------------------------------------------- Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the U.S. District Court for the District of Colorado on behalf of purchasers of the publicly traded securities of Delta Petroleum, Inc. during the period between Nov. 9, 2010 and Nov. 9, 2011, inclusive. If you have suffered a net loss for all transactions in Delta Petroleum, Inc. publicly traded securities during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at http://www.browerpiven.comby email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 60 years. No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than June 18, 2012 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff. The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that the Company was not adequately reserving for its dry hole costs and impairments, causing its financial results to be materially misstated, that Delta's unproductive assets would hinder its ability to find a buyer for itself or its assets as the value of the Company's assets was less than the value of its aggregate debt, and that the Company had significant exposure to liquidity concerns. According to the complaint, after, on Nov. 9, 2011, Delta announced a net loss of $429.4 million for the quarter ended Sept. 30, 2011 due mostly to costs associated with drilling dry holes and announced that the Company had not received any offers to purchase the Company or its assets, and as a result, Delta would be forced to restructure its indebtedness and, should it be unsuccessful in achieving a transaction or transactions addressing the Company's liquidity, seek protection under Chapter 11 of the U.S. Bankruptcy Code, the value of Delta shares declined significantly. Also according to the complaint, on Dec. 16, 2011, Delta announced that it, along with its affiliates, had filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class. About Delta Petroleum Delta Petroleum Corporation (NASDAQ: DPTR) is an independent oil and gas company engaged primarily in the exploration for, and the acquisition, development, production, and sale of, natural gas and crude oil. Natural gas comprises over 90% of Delta's production services. The core area of its operations is the Rocky Mountain Region of the United States, where the majority of the proved reserves, production and long-term growth prospects are located. Delta and seven of its subsidiaries sought Chapter 11 bankruptcy protection (Bankr. D. Del. Case Nos. 11-14006 to 11-14013, inclusive) on Dec. 16, 2011, roughly six weeks before the Jan. 31, 2012 scheduled maturity of its $38.5 million secured credit facility with Macquarie Bank Limited and after several months of unsuccessful attempts to sell the business. Delta disclosed $375,498,248 in assets and $310,679,157 in liabilities, which also include $152,187,500 in outstanding obligations on account of the 7% senior unsecured notes issued in March 2005 with US Bank National Association indenture trustee; and $115,527,083 in outstanding obligations on account of 3-3/4% Senior Convertible Notes due 2037 issued in April 2007. In its amended schedules, the Delta Petroleum disclosed $373,836,358 in assets and $312,864,788 in liabilities. W. Peter Beardsley, Esq., Christopher Gartman, Esq., Kathryn A. Coleman, Esq., and Ashley J. Laurie, Esq., at Hughes Hubbard & Reed LLP, in New York, N.Y., represent the Debtors as counsel. Derek C. Abbott, Esq., Ann C. Cordo, Esq., and Chad A. Fights, Esq., at Morris, Nichols, Arsht & Tunnel LLP, in Wilmington, Del., represent the Debtors as co-counsel. Conway Mackenzie is the Debtors's restructuring advisor. Evercore Group L.L.C. is the financial advisor and investment banker. The Debtors selected Epiq Bankruptcy Solutions, LLC as claims and noticing agent. The petition was signed by Carl E. Lakey, chief executive officer and president. Delta will hold an auction for the business on March 26, 2012. No buyer is under contract. There is $57.5 million in financing for the Chapter 11 effort. The U.S. Trustee told the bankruptcy judge that there was insufficient interest from creditors to form an official committee of unsecured creditors. DEWEY & LEBOEUF: Said To Be In Talks With Greenberg on Merger ------------------------------------------------------------- Dow Jones Newswires' Jennifer Smith and The Wall Street Journal's Mike Spector report that according to a person familiar with the matter New York law firm Dewey & LeBoeuf LLP is in preliminary talks with rival firm Greenberg Traurig LLP about a possible transaction. The report notes Dewey acknowledged Friday that it is considering merging with another firm, among other options. Leaders at Dewey, which is struggling to manage a heavy debt load amid an exodus of partners, said in a firmwide memo that it was considering "various paths," without giving specific details, accordin got the report. "At this point, nothing is definitive," they wrote. The report notes the firm's comments followed a report in The Wall Street Journal that said Dewey is considering a novel rescue plan that would involve a prearranged bankruptcy as a way of shedding liabilities before a sale. The firm noted the Journal report in an internal memo and didn't dispute that it was considering seeking bankruptcy protection. "We are not going to comment on every rumor and bit of speculation that is put forward," a firm spokesman said, according to the report. Greenberg has had "preliminary discussions relating to lawyers at Dewey LeBoeuf" but no commitments have been made, said a spokeswoman at that firm, the report relates. Dewey & LeBoeuf became one of the largest in New York five years ago when Dewey Ballantine LLP, which was founded in 1909, merged with LeBoeuf, Lamb, Greene & MacRae, which began in 1929. The report recounts merged firm pursued an ambitious plan to become one of the elite Wall Street firms. It recruited lawyers with big books of business, partly using compensation promises made to some lawyers that became increasingly difficult to meet over time. Greenberg was founded in Miami and has more than 1,700 lawyers. According to the report, a merger through bankruptcy is an unusual move for law firms, particularly of this size. The report notes law firms usually used bankruptcy just to shut down, until late last year when a South Florida law firm that specialized in real- estate law, Ruden McClosky, used the bankruptcy process to clinch a $7.8 million cash-and-debt sale to a new owner. According to the report, legal consultant Peter Zeughauser said opening Dewey's books to a prospective suitor is risky because then the other firm learns which lawyers are pulling in the most money and how much they get paid. That makes it easier to cherry- pick the most valuable assets, and, if talks collapse, "causes further loss of confidence in the firm's future," Mr. Zeughauser said. "The suitor holds all the cards." The report also notes Bill Brennan, a principal with the legal consulting firm Altman Weil Inc. said, "A bankruptcy is better for the people in the firm -- the partners, associates and support staff, if the firm survives." He added,,"But it's unlikely that their clients will be willing to stay with a law firm that declared bankruptcy." DEX MEDIA WEST: Bank Debt Trades at 36% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Dex Media West LLC is a borrower traded in the secondary market at 63.50 cents-on- the-dollar during the week ended Friday, April 20, 2012, an increase of 0.33 percentage points from the previous week, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 450 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 24, 2014, and carries Moody's Caa3 rating and Standard & Poor's D rating. The loan is one of the biggest gainers and losers among 170 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About R.H. Donnelley & Dex Media Based in Cary, North Carolina, R.H. Donnelley Corp., fka The Dun & Bradstreet Corp. (NYSE: RHD) -- http://www.rhdonnelley.com/-- publishes and distributes print and online directories in the U.S. It offers print directory advertising products, such as yellow pages and white pages directories. R.H. Donnelley Inc., Dex Media, Inc., and Local Launch, Inc., are the company's only direct wholly owned subsidiaries. Dex Media East LLC is a publisher of the official yellow pages and white pages directories for Qwest Communications International Inc. in the states, where Qwest is the primary incumbent local exchange carrier, such as Colorado, Iowa, Minnesota, Nebraska, New Mexico, North Dakota and South Dakota. R.H. Donnelley Corp. and 19 of its affiliates, including Dex Media East LLC, Dex Media West LLC and Dex Media, Inc., filed for Chapter 11 protection (Bank. D. Del. Case No. 09-11833 through 09- 11852) on May 28, 2009, after missing a $55 million interest payment on its senior unsecured notes. James F. Conlan, Esq., Larry J. Nyhan, Esq., Jeffrey C. Steen, Esq., Jeffrey E. Bjork, Esq., and Peter K. Booth, Esq., at Sidley Austin LLP, in Chicago, represented the Debtors in their restructuring efforts. Edmon L. Morton, Esq., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP, in Wilmington, Delaware, served as the Debtors' local counsel. The Debtors' financial advisor was Deloitte Financial Advisory Services LLP while its investment banker was Lazard Freres & Co. LLC. The Garden City Group, Inc., served as claims and noticing agent. The Official Committee of Unsecured Creditors tapped Ropes & Gray LLP as its counsel, Cozen O'Connor as Delaware bankruptcy co-counsel, J.H. Cohn LLP as its financial advisor and forensic accountant, and The Blackstone Group, LP, as its financial and restructuring advisor. The Debtors emerged from Chapter 11 bankruptcy proceedings at the end of January 2010. DEX ONE: Closes Tender offer for 12% / 14% Sr. Subordinated Notes ----------------------------------------------------------------- Dex One Corporation has accepted for purchase approximately $98 million in principal amount of its approximately $311 million aggregate outstanding principal amount of 12% / 14% Senior Subordinated Notes due 2017 that were validly tendered and not validly withdrawn pursuant to its previously announced cash tender offer for the Notes. The Tender Offer was made pursuant to the Offer to Purchase dated March 20, 2012, and the related Letter of Transmittal. The Tender Offer expired at 9:00 a.m. New York City time, on April 19, 2012. The total consideration paid by the company for Notes accepted for purchase was $270 per $1,000 aggregate principal amount of those Notes plus an amount in cash in lieu of the accrued and unpaid interest on those Notes, calculated at a rate of 12% per annum on the aggregate principal amount of such Notes from March 31, 2012, to, but not including, April 19, 2012. Houlihan Lokey acted as dealer manager for the Tender Offer. Questions regarding the Tender Offer may be directed to the Liability Management Group of Houlihan Lokey at (212) 497-7864. About Dex One Dex One, headquartered in Cary, North Carolina, is a local business marketing services company that includes print directories and online voice and mobile search. Revenue was approximately $1.1 billion for the LTM period ended Sept. 30, 2010. R.H. Donnelley Corp. and 19 of its affiliates, including Dex Media East LLC, Dex Media West LLC and Dex Media Inc., filed for Chapter 11 protection on May 28, 2009 (Bank. D. Del. Case No. 09- 11833 through 09-11852). They emerged from bankruptcy on Jan. 29, 2010. On the Effective Date and in connection with its emergence from Chapter 11, RHD was renamed Dex One Corporation. Dex One reported a net loss of $518.96 million in 2011 compared with a net loss of $923.59 million for the eleven months ended Dec. 31, 2010. The Company's balance sheet at Dec. 31, 2011, showed $3.46 billion in total assets, $3.47 billion in total liabilities, and a $9.86 million total shareholders' deficit. * * * In the April 2, 2012, edition of the TCR, Moody's Investors Service has downgraded the corporate family rating (CFR) for Dex One Corporation's to Caa3 from B3 based on Moody's view that a debt restructuring is inevitable. Moody's has also changed Dex's Probability of Default Rating (PDR) to Ca/LD from B3 following the company's purchase of about $142 million of par value bank debt for about $70 million in cash. The Caa3 rating also reflects Moody's view that additional exchanges at a discount are likely in the future since the company amended its bank covenants to make it possible to repurchase additional bank debt on the open market through the end of 2013. As reported by the TCR on April 4, 2012, Standard & Poor's Ratings Services raised its corporate credit rating on Cary, N.C.-based Dex One Corp. and related entities to 'CCC' from 'SD' (selective default). "The upgrade reflects our assessment of the company's credit profile after the completion of the subpar repurchase transaction in light of upcoming maturities, future subpar repurchases, and our expectation of a continued week operating outlook," explained Standard & Poor's credit analyst Chris Valentine. DISCOVER FINANCIAL: Moody's Issues Summary Credit Opinion --------------------------------------------------------- Moody's Investors Service issued a summary credit opinion on Discover Financial Services and includes certain regulatory disclosures regarding its ratings. The release does not constitute any change in Moody's ratings or rating rationale for Discover Financial Services. Moody's current ratings on Discover Financial Services are: Senior Unsecured (domestic currency) ratings of Ba1 Senior Unsecured Shelf (domestic currency) ratings of (P)Ba1 Subordinate Shelf (domestic currency) ratings of (P)Ba2 Preferred Shelf (domestic currency) ratings of (P)Ba3 Preferred shelf -- PS2 (domestic currency) ratings of (P)B1 RATING RATIONALE DFS' ratings reflect the company's improved financial profile including increased profitability, stronger capital metrics, satisfactory liquidity, and solid franchise in US Card Issuing. The ratings also takes into account the challenges inherent in DFS' continuing build out of its direct banking platform, as well as its announced capital deployment initiatives and potential effects on key capital metrics. Rating Outlook The rating outlook is stable. What Could Change the Rating - Up Moody's is monitoring the development of DFS's direct banking platform, including growth rates, deposit customer retention, asset quality, and profitability. In Moody's view it will take time to fully develop these initiatives -- and to assess their success -- and the company may encounter challenges particularly given the parlous economic environment. Prudent management of these non-card segments, in combination with continued satisfactory consolidated capital, liquidity, and profitability, could lead to upward adjustment of the ratings. What Could Change the Rating - Down Significant weakening of core profitability, key capital metrics including Tier 1 Leverage and TCE/RWA, and liquidity profile. The methodologies used in this rating were Bank Financial Strength Ratings: Global Methodology published in February 2007 and Incorporation of Joint-Default Analysis into Moody's Bank Ratings: Global Methodology published in March 2012. DOMINION RESOURCES: Moody's Issues Summary Credit Opinion --------------------------------------------------------- Moody's Investors Service issued a summary credit opinion on Dominion Resources Inc. and includes certain regulatory disclosures regarding its ratings. The release does not constitute any change in Moody's ratings, outlook or rating rationale for Dominion Resources Inc. and its affiliates. Moody's current ratings on Dominion Resources Inc. and its affiliates are: Dominion Resources Inc. Senior Unsecured domestic currency ratings of Baa2 Junior Subordinate domestic currency ratings of Baa3 Senior Unsec. Shelf domestic currency ratings of (P)Baa2 Junior Subord. Shelf domestic currency ratings of (P)Baa3 Pref. Shelf domestic currency ratings of (P)Ba1 Commercial Paper ratings of P-2 BACKED Senior Unsecured domestic currency ratings of Baa2 BACKED Pref. Stock domestic currency ratings of Baa3 Consolidated Natural Gas Company BACKED Senior Unsecured domestic currency ratings of Baa2 Virginia Electric and Power Company Senior Unsecured domestic currency ratings of A3 Senior Unsecured MTN domestic currency ratings of (P)A3 LT Issuer Rating ratings of A3 Pref. Stock ratings of Baa2 Pref. Stock domestic currency ratings of Baa2 Senior Secured Shelf domestic currency ratings of (P)A1 Senior Unsec. Shelf domestic currency ratings of (P)A3 Junior Subord. Shelf domestic currency ratings of (P)Baa1 Commercial Paper domestic currency ratings of P-2 BACKED Senior Unsecured domestic currency ratings of A3 BACKED LT IRB/PC domestic currency ratings of A3 BACKED Short Term IRB domestic currency ratings of VMIG 2 BACKED Other Short Term domestic currency ratings of VMIG 2 Panda-Rosemary Funding Corporation BACKED Senior Unsecured domestic currency ratings of A3 Dominion Resources Capital Trust I BACKED Pref. Stock domestic currency ratings of Baa3 Dominion Resources Capital Trust III BACKED Pref. Stock domestic currency ratings of Baa3 Dominion Resources Capital Trust IV BACKED Pref. Shelf domestic currency ratings of (P)Baa3 Ratings Rationale Dominion's Baa2 senior unsecured rating is supported by the diversity of its operations and the stability of cash flow from VEPCO and certain other regulated operations, coupled with Moody's expectations that about three quarters of total capital expenditures will be directed toward regulated businesses over the next three years and that financial metrics, which have generally been appropriate to the rating category, will remain reasonably well positioned. These factors are balanced against the potential drag on earnings and cash flow of lower power prices (which affect the unhedged portion of the merchant portfolio), an expectation of considerable negative free cash flow caused by a large capex program and a sizeable dividend, and a substantial portion of consolidated debt at the holding company (about 40%). Rating Outlook Dominion's stable rating outlook primarily reflects Moody's expectation that any changes to the company's business mix will be in the direction of more regulated cash flows as the company focuses primarily on its regulated investment opportunities, and a stable regulatory environment for its principal subsidiary VEPCO. The stable outlook also reflects Moody's expectation that Dominion will produce key financial credit metrics which are commensurate with the Baa2 ratings category, including producing CFO pre- W/C/Debt in the mid-to-high-teens range and CFO pre-W/C - Dividends/Debt in the low-to-mid teens range. What Could Change the Rating - Up A rating upgrade appears unlikely over the near to intermediate- term horizon, primarily due to Moody's view that Dominion's capital expenditure program, in conjunction with its dividend payout, will most likely keep its key cash flow and capitalization metrics in the mid-Baa range. Nevertheless, should Dominion produce materially higher financial credit metrics, such that CFO pre-W/C/Debt were in the low 20% range and CFO pre-W/C - Dividends/Debt were in the mid-to-high teens range for a sustained period, the ratings could be upgraded. A material decrease in the overall business risk profile, for instance by a divestiture of the more volatile non-regulated generation business, could somewhat decrease the financial metrics threshold for an upgrade. What Could Change the Rating - Down Dominion's ratings could be downgraded if there were a material weakening of its consolidated financial metrics (for instance if CFO Pre-WC/Debt were in the low-to-mid teens range or CFO pre-W/C - Dividends/Debt were below 12% for a sustained period of time), a deterioration in the liquidity profile (for instance from unexpectedly large swings in the collateral required for its hedging program), a failure to finance the capital expenditure program with an appropriate mix of debt and equity, or an unexpectedly more contentious regulatory environment at VEPCO. The principal methodology used in these ratings was Regulated Electric and Gas Utilities published in August 2009. ENOVA SYSTEMS: Gets NYSE Amex Exchange Non-Compliance Notice ------------------------------------------------------------ Enova Systems Inc. disclosed that on April 17, 2012, it received notice from the NYSE Amex LLC indicating that the Company is not in compliance with one of the Exchange's continued listing standards as set forth in Part 10 of the Exchange's Company Guide, and the Company has therefore become subject to the procedures and requirements of Section 1009 of the Company Guide. Specifically, the Company is not in compliance with Section 1003(a) (iii) with stockholders' equity of less than $6,000,000 and losses from continuing operations and/or net losses in five consecutive fiscal years. As is the Exchange's policy, Enova has been afforded the opportunity to submit a plan of compliance to the Exchange by May 17, 2012 addressing how the Company intends to regain compliance with the continued listing standards of the Company Guide within a maximum of 18 months. The Company is taking steps to prepare and submit such a plan to the Exchange on or before May 17, 2012. If the plan is accepted but the Company is not in compliance with the continued listing standards of the Company Guide by October 15, 2013 or if the Company is not making progress consistent with the plan during the Plan Period, the Company would become subject to delisting procedures in accordance with Section 1010 and Part 12 of the Company Guide. Torrance, California-based Enova Systems, Inc., develops, designs and produces proprietary, power train systems and related components for electric and hybrid electric buses and medium and heavy duty commercial vehicles. FARLAP DEVELOPMENT: Case Summary & 9 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Farlap Development Corporation 2 Cowdray Park Drive Greenwich, CT 06831 Bankruptcy Case No.: 12-50710 Chapter 11 Petition Date: April 18, 2012 Court: U.S. Bankruptcy Court District of Connecticut (Bridgeport) Judge: Alan H.W. Shiff Debtor's Counsel: Matthew K. Beatman, Esq. ZEISLER AND ZEISLER, P.C. 558 Clinton Avenue P.O. Box 3186 Bridgeport, CT 06605 Tel: (203) 368-4234 E-mail: MBeatman@zeislaw.com Estimated Assets: $0 to $50,000 Estimated Debts: $10,000,001 to $50,000,000 A copy of the Company's list of its nine largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/ctb12-50710.pdf The petition was signed by Corey Kupersmith, president. FIFTH SEASON INT'L: Marcum Bernstein Raises Going Concern Doubt --------------------------------------------------------------- Fifth Season International, Inc., filed on April 16, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. Marcum Bernstein & Pinchuk LLP, in New York, expressed substantial doubt about Fifth Season's ability to continue as a going concern. The independent auditors noted that the Company has a significant working capital deficiency. "[A]s of Dec. 31, 2011, the Company is not in compliance with its loan covenant in connection with its loan with China Construction Bank," the independent auditors said. The Company reported net income of $88,326 on $198.73 million of revenues for 2011, compared with net income of $9.05 million on $55.97 million of revenues for 2010. The Company's balance sheet at Dec. 31, 2011, showed $229.06 million in total assets, $185.88 million in total liabilities, and stockholders' equity of $43.18 million. A copy of the Form 10-K is available for free at: http://is.gd/nKpTlL Located in Shenzhen, People's Republic of China, Fifth Season International, Inc., is engaged in the investment, assignment, and leasing of commercial properties, in the operation of department stores, and in the wholesale of goods in China. FIRSTFED FINANCIAL: FDIC Objects to First Amended Ch. 11 Plan ------------------------------------------------------------- BankruptcyData.com reports that the FDIC filed with the U.S. Bankruptcy Court an objection to the Disclosure Statement for the First Amended Chapter 11 Plan of Reorganization proposed by HoldCo Advisors. The FDIC stated, "The Disclosure Statement provides no information about Holdco, the entity or entities for which it allegedly acts as "manager," or the type and value of the claims against the Debtor's estate that they allegedly hold. It is unclear from the Disclosure Statement that Holdco even has standing to be heard in this bankruptcy case, much less to propose a plan of reorganization in which it will exercise such total unreviewable control over post-reorganization events "in its sole and absolute discretion" (a phrase that is repeated no fewer than eleven times in the Disclosure Statement)." As reported in the Troubled Company Reporter on March 28, 2012, FirstFed Financial creditor Holdco Advisors filed with the U.S. Bankruptcy Court a First Amended Chapter 11 Plan of Reorganization and related Disclosure Statement. "The Plan provides for the reorganization of the Debtor and for Holders of certain Allowed Claims to receive equity in the Reorganized Debtor, with the option to be elected by each Holder of General Unsecured Claims to receive instead a 'cash out' right of payment and/or a security that results in cash from certain of the Debtor's assets, including Cash held by the Debtor as of the Effective Date. In order to effectuate the Distributions, the Plan provides that all of the assets of the Debtor's Estate (including Causes of Action not expressly released under the Plan) shall vest in the Reorganized Debtor and then, where applicable, be distributed pursuant to the Plan....the Reorganized Debtor shall continue to operate the Debtor's business as a going concern in the real estate and financial services sectors, and will pursue litigation, including litigation with the FDIC, and make Distributions under the Plan," according to the Disclosure Statement obtained by BankruptcyData.com. About FirstFed Financial Irvine, Calif.-based FirstFed Financial Corp. is the bank holding company for First Federal Bank of California and its subsidiaries. The Bank was closed by federal regulators on Dec. 18, 2009. FirstFed Financial Corp. filed for Chapter 11 protection (Bankr. C.D. Calif. Case No. 10-10150) on Jan. 6, 2010. Jon L. Dalberg, Esq., at Landau Gottfried & Berger LLP, represents the Debtor in its restructuring effort. Garden City Group is the claims and notice agent. The Debtor disclosed assets at $1 million and $10 million, and debts at $100 million and $500 million. The Debtor's exclusive period to propose a plan expired in January 2011. The Debtor has proposed a Plan of Liquidation, which proposes an orderly liquidation of the Debtor's estate. As previously reported by the TCR on Feb. 16, 2012, Holdco Advisors L.P., submitted to the Bankruptcy Court a proposed Plan of Reorganization and explanatory Disclosure Statement for Firstfed Financial Corp. FNBH BANCORP: BDO USA Raises Going Concern Doubt ------------------------------------------------ FNBH Bancorp, Inc., filed on April 16, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. BDO USA, LLP, in Grand Rapids, Michigan, expressed substantial doubt about FNBH Bancorp's ability to continue as a going concern. The independent auditors noted that Corporation's subsidiary bank is significantly undercapitalized under regulatory capital guidelines and, during 2009, the Bank entered into a consent order regulatory enforcement action with its primary regulator, the Office of the Comptroller of the Currency. "The consent order requires management to take a number of actions, including, among other things, increasing and maintaining its capital levels at amounts in excess of the Bank's current capital levels. The Bank has not yet met the higher capital requirements and is therefore not in compliance with the consent order." The Company reported a net loss of $3.57 million on $11.12 million of net interest income (before provision for loan losses) for 2011, compared with a net loss of $3.89 million on $11.73 million of net interest income (before provision for loan losses) for 2010. The Company's balance sheet at Dec. 31, 2011, showed $292.08 million in total assets, $285.47 million in total liabilities, and stockholders' equity of $6.61 million. A copy of the Form 10-K is available for free at: http://is.gd/OmA6hR Howell, Michigan-based FNBH Bancorp, Inc., is a one-bank holding company, which owns all of the outstanding capital stock of First National Bank in Howell. The Bank was originally organized in 1934 as a national banking association. As of Dec. 31, 2011, the Bank had approximately 85 full-time and part-time employees. The Bank serves primarily five communities, Howell, Brighton, Green Oak Township, Hartland, and Fowlerville, all of which are located in Livingston County. FORT LEE FEDERAL: Closed; Alma Bank Assumes All Deposits -------------------------------------------------------- Fort Lee Federal Savings Bank, FSB, of Fort Lee, N.J., was closed on Friday, April 20, 2012, by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Alma Bank of Astoria, N.Y., to assume all of the deposits of Fort Lee Federal Savings Bank, FSB. The sole branch of Fort Lee Federal Savings Bank, FSB, will reopen during normal business hours as a branch of Alma Bank. Depositors of Fort Lee Federal Savings Bank, FSB, will automatically become depositors of Alma Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Fort Lee Federal Savings Bank, FSB, should continue to use their existing branch until they receive notice from Alma Bank that it has completed systems changes to allow other Alma Bank branches to process their accounts as well. As of Dec. 31, 2011, Fort Lee Federal Savings Bank, FSB had around $51.9 million in total assets and $50.7 million in total deposits. Alma Bank will pay the FDIC a premium of 1.85 percent to assume all of the deposits of Fort Lee Federal Savings Bank, FSB. In addition to assuming all of the deposits of the failed bank, Alma Bank agreed to purchase around $15.7 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition. Customers with questions about the transaction should call the FDIC toll-free at 1-800-430-8098. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/fortlee.html The FDIC estimates that the cost to the Deposit Insurance Fund will be $14.0 million. Compared to other alternatives, Alma Bank's acquisition was the least costly resolution for the FDIC's DIF. Fort Lee Federal Savings Bank, FSB, is the seventeenth FDIC- insured institution to fail in the nation this year, and the first in New Jersey. The last FDIC-insured institution closed in the state was First State Bank, Cranford, on Oct. 14, 2011. GATEWAY VENTURES: Case Summary & 5 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Gateway Ventures, LLC 15165 Ventura Boulevard, Suite 140 Sherman Oaks, CA 91403 Bankruptcy Case No.: 12-11583 Chapter 11 Petition Date: April 18, 2012 Court: U.S. Bankruptcy Court Southern District of New York (Manhattan) Judge: Robert E. Gerber Debtor's Counsel: Mark K. Lindenberg, Esq. GOLDBERG, SCUDIERI & LINDENBERG, P.C. 45 West 45th Street, Suite 1401 New York, NY 10036 Tel: (212) 921-1600 Fax: (212) 840-3941 E-mail: bankruptcynotice@gslblaw.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its five largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/nysb12-11583.pdf The petition was signed by Daniel Shalom, president. GENERAL MOTORS: New GM Not Required to Honor Extended Warranties ---------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that General Motors Co., the formal name for the company that purchased the business of General Motors Corp., isn't liable to honor extended warranties for some Saturn vehicles that resulted from a class-action settlement before bankruptcy. The report recounts that the dispute involved some Saturns for model years 2002 through 2005 which allegedly have defective transmissions. Old GM had extended the warranties to 75,000 miles from 36,000 miles. A class-action lawsuit was filed later and settled with old GM's agreement to extend the warranties to 125,000 miles and pay $4.4 million for the class plaintiffs' attorneys' fees. The class-suit settlement had been court- approved, although not final, when old GM filed for Chapter 11 bankruptcy. New GM sued in bankruptcy court and prevailed after trial when U.S. Bankruptcy Judge Robert E. Gerber ruled April 17 that liability under the class settlement didn't pass to new GM through the bankruptcy sale. According to the report, Judge Gerber said it was the intent of old and new GM that the buyer would only take on "those liabilities that were commercially necessary to the success of new GM." Although the sale agreement wasn't dispositive on its own, Judge Gerber concluded that new GM didn't assume liability under the settlement. The lawsuit is Castillo v. General Motors Co., 09-00509, U.S. Bankruptcy Court, Southern District of New York (Manhattan). About General Motors With its global headquarters in Detroit, Michigan, General Motors Company (NYSE:GM, TSX: GMM) -- http://www.gm.com/-- is one of the world's largest automakers, traces its roots back to 1908. GM employs 208,000 people in every major region of the world and does business in more than 120 countries. GM and its strategic partners produce cars and trucks in 30 countries, and sell and service these vehicles through the following brands: Baojun, Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall, and Wuling. GM's largest national market is China, followed by the United States, Brazil, the United Kingdom, Germany, Canada, and Italy. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Co. was formed to acquire the operations of General Motors Corp. through a sale under 11 U.S.C. Sec. 363 following Old GM's bankruptcy filing. The U.S. government once owned as much as 60.8% stake in New GM on account of the financing it provided to the bankrupt entity. The deal was closed July 10, 2009, and Old GM changed its name to Motors Liquidation Co. On Nov. 1, 2011, Moody's Investors Service raised New GM's Corporate Family Rating and Probability of Default Rating to Ba1 from Ba2, and its secured credit facility rating to Baa2 from Baa3. Moody's also raised the Corporate Family Rating of GM's financial services subsidiary -- GM Financial -- to Ba3 from B1. On Oct. 7, 2011, Fitch Ratings upgraded the Issuer Default Ratings of New GM, General Motors Holdings LLC, and General Motors Financial Company Inc., to 'BB' from 'BB-'. On Oct. 3, 2011, Standard & Poor's Ratings Services raised its corporate credit rating on New GM to 'BB+' from 'BB-'; and revised the rating outlook to stable from positive. "We also raised our issue-level rating on GM's debt to 'BBB' from 'BB+'; the recovery rating remains at '1'," S&P said. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 09-50026) on June 1, 2009. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq.,and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Garden City Group is the claims and notice agent of the Debtors. The U.S. Trustee appointed an Official Committee of Unsecured Creditors and a separate Official Committee of Unsecured Creditors Holding Asbestos-Related Claims. Lawyers at Kramer Levin Naftalis & Frankel LLP served as bankruptcy counsel to the Creditors Committee. Attorneys at Butzel Long served as counsel on supplier contract matters. FTI Consulting Inc. served as financial advisors to the Creditors Committee. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represented the Asbestos Committee. Legal Analysis Systems, Inc., served as asbestos valuation analyst. The Bankruptcy Court entered an order confirming the Debtors' Second Amended Joint Chapter 11 Plan on March 29, 2011. The Plan was declared effect on March 31. GENWORTH FINANCIAL: Moody's Issues Summary Credit Opinion --------------------------------------------------------- Moody's Investors Service issued a summary credit opinion on Genworth Financial, Inc. and includes certain regulatory disclosures regarding its ratings. This release does not constitute any change in Moody's ratings or rating rationale for Genworth Financial, Inc.. Moody's current ratings on Genworth Financial, Inc. are: Senior Unsecured (domestic currency) ratings of Baa3 Junior Subordinate (domestic currency) ratings of Ba1(hyb) Senior Unsecured Shelf (domestic currency) ratings of (P)Baa3 Subordinate Shelf (domestic currency) ratings of (P)Ba1 Preferred Shelf (domestic currency) ratings of (P)Ba2 Commercial Paper (domestic currency) ratings of P-3 Rating Rationale Genworth Financial, Inc. (Genworth, NYSE:GNW, senior debt at Baa3/negative outlook), is an insurance and financial services holding company focused on providing products and services to meet the investment, protection, home ownership, retirement and independent consumer lifestyle needs. Through its life insurance operating subsidiaries Genworth is a leading provider of individual LTC insurance sold in the U.S., and has historically held solid positions in term life insurance and income annuities. Genworth is also a multinational provider of mortgage insurance (MI) with a material position in the U.S., and leading positions in a number of international markets, including Canada and Australia. Genworth's Baa3 senior debt rating is 4 notches lower than the A2 insurance financial strength (IFS) rating of the company's lead life insurance companies. The notching differential between the main life insurance operating entities and the holding company is greater than the standard 3 notches, a reflection of the lower rating of the MI company. Rating Outlook The ratings of Genworth and its insurance subsidiaries currently have negative outlooks. What to Watch for: - Management actions to improve market / book value that could disadvantage creditors; - Earnings in U.S. Mortgage Insurance business; - Ability to get rate increases on legacy block of long-term care (LTC). What Could Change the Rating - Up Given the negative outlook, it is unlikely there would be an upgrade over the near term. The following could result in a change in outlook to stable: 1) Losses and capital requirements of the stress case scenario for the U.S. MI operations are determined to have a modest impact on the group; 2) Elimination of downward ratings pressure on the company's lead life companies (see Genworth Life Insurance Group credit opinion for specific rating drivers); 3) Return on Capital of 4% or more. What Could Change the Rating - Down - Downgrade of the financial strength ratings of the company's lead operating mortgage and/or life companies; - Adjusted financial leverage exceeding 30% and earnings coverage falling below 2x on a sustained basis. The methodologies used in this rating were Moody's Global Rating Methodology for Life Insurers published in May 2010, and Moody's Global Rating Methodology for the Mortgage Insurance Industry published in February 2007. GETTY PETROLEUM: Judge Confirms Bionol Clearfield' $240MM Win ------------------------------------------------------------- Peg Brickley at Dow Jones' DBR Small Cap reports that a judge in New York confirmed Bionol Clearfield LLC's $230 million win over Getty Petroleum Marketing in a contest over who was at fault for a failed deal that ultimately sent both companies into bankruptcy. About Getty Petroleum A remnant of J. Paul Getty's oil empire, Getty Petroleum Marketing markets gasolines, hydraulic fluids, and lubricating oils through a network of gas stations owned and operated by franchise holders. A former subsidiary of Russian oil giant LUKOIL, the company operates in the Mid-Atlantic and Northeastern US states. Getty Petroleum Marketing's primary asset is the more than 800 gas stations in the Mid-Atlantic states which are located on properties owned by Getty Realty. After scaling back the company's operations to cut debt, in 2011 LUKOIL sold Getty Petroleum Marketing to investment firm Cambridge Petroleum Holding for an undisclosed price. Getty Petroleum and three affiliates filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case Nos. 11-15606 to 11-15609) on Dec. 5, 2011. Judge Shelley C. Chapman presides over the case. Loring I. Fenton, Esq., John H. Bae, Esq., Kaitlin R. Walsh, Esq., and Michael J. Schrader, Esq., at Greenberg Traurig, LLP, in New York, N.Y., serve as Debtors' counsel. Ross, Rosenthal & Company, LLP, serves as accountants for the Debtors. Getty Petroleum Marketing, Inc., disclosed $46,592,263 in assets and $316,829,444 in liabilities as of the Petition Date. The petition was signed by Bjorn Q. Aaserod, chief executive officer and chairman of the board. The Official Committee of Unsecured Creditors is represented by Wilmer Cutler Pickering Hale and Dorr LLP. Alvarez & Marsal North America, LLC, serves as the Committee's financial advisors. GRUBB & ELLIS: Stipulation With Committee and BCG Approved ---------------------------------------------------------- Judge Martin Glenn approved a Stipulation and Settlement Agreement dated March 21, 2012, among Grubb & Ellis Company, the Committee of Unsecured Creditors and BGC Partners, Inc. Under the Agreement, the Debtors and BGC will enter into a Second Amended and Restated Asset Purchase Agreement. The parties acknowledge that time is of the essence with respect to the Sale Transaction. The Committee agreed to support the sale of the Debtors assets to BGC and the Debtors' DIP financing agreement with BGC. About Grubb & Ellis Grubb & Ellis Company -- http://www.grubb-ellis.com/-- is a commercial real estate services and property management company with more than 3,000 employees conducting throughout the United States and the world. It is one of the oldest and most recognized brands in the industry. Grubb & Ellis and 16 affiliates filed for Chapter 11 bankrutpcy (Bankr. S.D.N.Y. Lead Case No. 12-10685) on Feb. 21, 2012, to sell almost all its assets to BGC Partners Inc. The Santa Ana, California-based company disclosed $150.16 million in assets and $167.2 million in liabilities as of Dec. 31, 2011. Judge Martin Glenn presides over the case. 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. BGC Partners, Inc., and its affiliate, BGC Note Acquisition Co., L.P., the DIP lender and Prepetition Secured Lender, are represented in the case by Emanuel C. Grillo, Esq., at Goodwin Procter LLP. On March 27, 2012, the Court approved the sale to BCG. An auction was cancelled after no rival bids were submitted. Pursuant to the term sheet signed by the parties, BGC would acquire the assets for $30.02 million, consisting of a credit bid the full principal amount outstanding under the (i) $30 million credit agreement dated April 15, 2011, with BGC Note, (ii) the amounts drawn under the $4.8 million facility, and (iii) the cure amounts due to counterparties. BGC would also pay $16 million in cash because the sale was approved by the March 27 deadline. Otherwise, the cash component would have been $14 million. Approval of the sale was simplified when BGC settled with unsecured creditors by increasing their recovery. Several parties in interest have taken an appeal from the sale order. GUIDED THERAPEUTICS: Appoints Linda Rosenstock to Board ------------------------------------------------------- Guided Therapeutics, Inc., appointed Linda Rosenstock, M.D., M.P.H., to it Board of Directors. The addition of Dr. Rosenstock increases the size of the Company's board to seven. She will stand for election at the Company's Annual Stockholder's Meeting scheduled for June 15, 2012. "Dr. Rosenstock is recognized both nationally and internationally as an expert in the field of occupational and environmental health and has a particular interest in women's healthcare," said Ron Allen, Chairman of the Guided Therapeutics Board of Directors. "We are delighted she has accepted an invitation to serve on our Board and look forward to her future contributions, as we seek to introduce our patented biophotonic technology around the world and ultimately improve the early detection of diseases like cervical and esophageal cancer." Dr. Linda Rosenstock, 61, is Dean of the University of California, Los Angeles (UCLA) Fielding School of Public Health. She holds appointments as Professor of Medicine and Environmental Health Sciences and is a recognized authority in broad areas of public health and science policy Before coming to UCLA in 2000, Dr. Rosenstock served as Director of the National Institute for Occupational Safety and Health (NIOSH) for nearly seven years. As Director of NIOSH, Dr. Rosenstock led the only federal agency with a mandate to undertake research and prevention activities in occupational safety and health. During her tenure, she was instrumental in creating the National Occupational Research Agenda, a framework for guiding occupational safety and health research and in expanding the agency's responsibilities. In recognition of her efforts, Dr. Rosenstock received the Presidential Distinguished Executive Rank Award, the highest executive service award in the government and was also the James P. Keogh Award Winner for 2011, in appreciation of a lifetime of extraordinary leadership in occupational health and safety. Dr. Rosenstock received her M.D. and M.P.H. from The Johns Hopkins University. She conducted her advanced training at the University of Washington, where she was Chief Resident in Primary Care Internal Medicine and a Robert Wood Johnson Clinical Scholar. Internationally, Dr. Rosenstock has been active in teaching and research in many developing countries and has served as an advisor to the World Health Organization. Dr. Rosenstock also chaired the United Auto Workers/General Motors Occupational Health Advisory Board. She is an Honorary Fellow of the Royal College of Physicians and an elected member of the National Academy of Sciences' Institute of Medicine, where she has served as a member of their Board on Health Sciences Policy and Chair pf the Committee for Preventive Services for Women. In January, 2011, she was appointed by President Barrack Obama to the Advisory Group on Prevention, Health Promotion and Integrative and Public Health. About Guided Therapeutics Guided Therapeutics, Inc. (OTC BB and OTC QB: GTHP) -- http://www.guidedinc.com/-- is developing a rapid and painless test for the early detection of disease that leads to cervical cancer. The technology is designed to provide an objective result at the point of care, thereby improving the management of cervical disease. Unlike Pap and HPV tests, the device does not require a painful tissue sample and results are known immediately. GT has also entered into a partnership with Konica Minolta Opto to develop a non-invasive test for Barrett's Esophagus using the LightTouch technology platform. The Company reported a net loss of $6.64 million in 2011, compared with a net loss of $2.84 million in 2010. The Company's balance sheet at Dec. 31, 2011, showed $4.31 million in total assets, $2.73 million in total liabilities and $1.57 million in total stockholders' equity. In its report on the Company's 2011 Form 10-K, UHY LLP, in Sterling Heights, Michigan, noted that the Company's recurring losses from operations and accumulated deficit raise substantial doubt about its ability to continue as a going concern. Bankruptcy Warning According to the Form 10-K for the year ended Dec. 31, 2011, the Company's capital-raising efforts are ongoing. If sufficient capital cannot be raised during the fourth quarter of 2012, the Company has plans to curtail operations by reducing discretionary spending and staffing levels, and attempting to operate by only pursuing activities for which it has external financial support, such as under the Konica Minolta development agreement and additional NCI or other grant funding. However, there can be no assurance that such external financial support will be sufficient to maintain even limited operations or that the Company will be able to raise additional funds on acceptable terms, or at all. In that a case, the Company might be required to enter into unfavorable agreements or, if that is not possible, be unable to continue operations, and to the extent practicable, liquidate or file for bankruptcy protection. HANMI FINANCIAL: Reports $7.3 Million Net Income in First Quarter ----------------------------------------------------------------- Hanmi Financial Corporation reported net income of $7.34 million on $30.29 million of total interest and dividend income for the three months ended March 31, 2012, compared with net income of $10.43 million on $33.87 million of total interest and dividend income for the same period a year ago. The Company's balance sheet at March 31, 2011, showed $2.77 billion in total assets, $2.47 billion in total liabilities and $293.71 million in total stockholders' equity. "As we celebrate our thirtieth anniversary, we are making progress, step by step, on the business plans that we crafted last year. We are very pleased with the increases in total assets, loans and deposits this quarter after several years of deleveraging our balance sheet. The improved operating platform we are implementing should provide further benefits and revenue growth into the future," said Jay S. Yoo, President and Chief Executive Officer. "In the first quarter of 2012, we launched the "Hanmi Neighbor Volunteer Service Program," to serve our community's youth, healthcare, and education groups. We believe this program can be a great opportunity for us to return the support we have received from our customers and our community and to further build relationships in the area." A copy of the press release is available for free at: http://is.gd/cGANrQ About Hanmi Financial Headquartered in Los Angeles, California, Hanmi Financial Corp. (Nasdaq: HAFC) -- http://www.hanmi.com/-- is the holding company for Hanmi Bank, a state chartered bank with headquarters located at 3660 Wilshire Boulevard, Penthouse Suite A, in Los Angeles. Hanmi Bank provides services to the multi-ethnic communities of California, with 27 full-service offices in Los Angeles, Orange, San Bernardino, San Francisco, Santa Clara and San Diego counties, and a loan production office in Washington State. Going Concern At Dec. 31, 2011, the Bank had a tangible stockholders' equity to total tangible assets ratio of 12.48 percent. Accordingly, the Company is in compliance with the Final Order. Pursuant to the Written Agreement, the Company is also required to increase, and is required to maintain, sufficient capital at the Company and at the Bank that is satisfactory to the Federal Reserve Bank. Should the Company's asset quality erode and require significant additional provision for credit losses, resulting in consistent net operating losses at the Bank, the Company's capital levels will decline and the Company will need to raise capital to satisfy its agreements with the regulators and any future regulatory orders or agreements the Company may be subject to. The Bank is subject to additional regulatory oversight as a result of a formal regulatory enforcement action issued by the Federal Reserve Bank and the California Department of Financial Institutions. On Nov. 2, 2009, the members of the Board of Directors of the Bank consented to the issuance of the Final Order from the California Department Financial Institutions. On the same date, the Company and the Bank entered into the Written Agreement with the Federal Reserve Bank. Under the terms of the Final Order and the Written Agreement, the Bank is required to implement certain corrective and remedial measures under strict time frames. HAWKER BEECHCRAFT: Bank Debt Trades at 46% Off in Secondary Market ------------------------------------------------------------------ Participations in a syndicated loan under which Hawker Beechcraft is a borrower traded in the secondary market at 64.14 cents-on- the-dollar during the week ended Friday, April 20, 2012, a drop of 2.43 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on March 26, 2014, and carries Moody's Caa3 rating and Standard & Poor's D rating. The loan is one of the biggest gainers and losers among 170 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Hawker Beechcraft Hawker Beechcraft Acquisition Company, LLC, headquartered in Wichita, Kansas, manufactures business jets, turboprops and piston aircraft for corporations, governments and individuals worldwide. Hawker Beechcraft reported a net loss of $631.90 million on $2.43 billion of sales in 2011, compared with a net loss of $304.30 million on $2.80 billion of sales in 2010. The Company's balance sheet at Dec. 31, 2011, showed $2.77 billion in total assets, $3.73 billion in total liabilities, and a $956.90 million total deficit. Going Concern According to the Form 10-K for the year ended Dec. 31, 2011, management concluded there is substantial doubt about the Company's ability to continue as a going concern. The Company determined not to pay its interest obligations under the Notes on April 2, 2012, and anticipate an inability to pay interest on the Notes on future interest payment dates. Furthermore, the Company will be required to repay or refinance its Senior Secured Credit Facilities and the Senior Tranche Advance prior to the repayment of the Notes and the Company will be required to repay or refinance the Senior Notes prior to the repayment of the Senior Subordinated Notes. The Company has suffered recurring operating losses resulting in a significant net shareholder's deficit that raises substantial doubt about its ability to continue as a going concern. The Company is operating under a forbearance agreement with its lenders which defers interest payment obligations and provides relief from loan covenants through June 29, 2012. Due to the fact that the Company has recurring negative cash flows from operations and recurring losses from operations, the Company will need to seek additional financing. There is substantial doubt that the Company will be able to obtain additional equity or debt financing on favorable terms, or at all, in order to have sufficient liquidity to meet its cash requirements for the next twelve months. Bankruptcy Warning As of Dec. 31, 2011, the Company was not in compliance with the covenants under its Senior Secured Credit Facilities and had $0.3 million for additional borrowings under its Revolving Credit Facility. As a result, the Company must rely on revenues from its business to meet its payment obligations under its indebtedness. The Company determined not to pay its interest obligations under the Notes on April 2, 2012, and anticipate an inability to pay interest on the Notes on future interest payment dates. Furthermore, the Company will be required to repay or refinance its Senior Secured Credit Facilities and the Senior Tranche Advance prior to the repayment of the Notes and the Company will be required to repay or refinance the Senior Notes prior to the repayment of the Senior Subordinated Notes. If the Company was unable to make payments or refinance its debt or obtain new financing under these circumstances, it would have to consider other options, such as: (a) sales of assets; (b) sales of equity; (c) negotiations with its lenders to restructure the applicable debt; or (d) seeking protection under chapter 11 of the U.S. Bankruptcy Code. * * * As reported by the Troubled Company Reporter on April 10, 2012, Moody's Investors Service has downgraded ratings of Hawker Beechcraft Acquisition, including the probability of default rating to Ca from Caa3. Concurrently, a limited default ("LD") designation has been assigned because Moody's believes that the company deferred bank debt interest that was due March 30. Credit facility forbearance until June 29, 2012 has been arranged for the interest deferral, financial covenant and other breaches. The LD designation will remain in place until resolution of the deferred interest payment emerges. HD SUPPLY: Messrs. Holt & Bernasek Quit; V. Amin Named to Board --------------------------------------------------------------- Allan Holt, a board of directors appointee of The Carlyle Group, resigned from HD Supply, Inc.'s board of directors and Brian Bernasek, also a Carlyle appointee, resigned from the Company's Audit Committee (but remained as a member of the Company's board of directors, compensation committee, and executive committee). Pursuant to a stockholders agreement between HDS Investment Holding, Inc., the Company's parent company, its equity sponsors and their affiliates, and other stockholders of HDS Investment Holding, Inc., Carlyle, is entitled to appoint three members of the Company's board of directors and one member of the Company's Audit Committee. Effective April 17, 2012, Carlyle appointed Mr. Vipul Amin to fill the respective vacancies created by Mr. Holt's resignation from the Company's board of directors and Mr. Bernasek's resignation from the Company's Audit Committee. Mr. Amin will also serve as the Chair of the Audit Committee. Mr. Amin, age 35, is a Principal with Carlyle's U.S. Buyout group, focusing primarily on buyouts, privatizations and strategic minority investments throughout the U.S. in the industrial and transportation sector. Since joining Carlyle in 2000, Mr. Amin has been actively involved in various Carlyle portfolio companies, including PQ Corporation and HD Supply currently. In addition, Mr. Amin was a member of the transaction team that executed Carlyle's investments in each of John Maneely Company and Rexnord Corporation. Prior to joining Carlyle, Mr. Amin was employed with Bowles Hollowell Connor and Co. Mr. Amin received an M.B.A. from Harvard University and an A.B. in philosophy from Duke University. About HD Supply HD Supply, Inc., headquartered in Atlanta, Georgia, is one of the largest North American wholesale distributors supporting residential and non-residential construction and to a lesser extent electrical consumption and repair and remodeling. HDS also provides maintenance, repair and operations services. Its businesses are organized around three segments: Infrastructure and Energy; Maintenance, Repair & Improvement; and, Specialty Construction. HDS operates through approximately 800 locations throughout the U.S. and Canada serving contractors, government entities, maintenance professionals, home builders and professional businesses. The Company reported a net loss of $543 million for the year ended Jan. 29, 2012, a net loss of $619 million for the year ended Jan. 30, 2011, and a net loss of $514 million on $6.94 billion of net sales for the year ended Jan. 31, 2010. The Company's balance sheet at Jan. 29, 2012, showed $6.73 billion in total assets, $7.16 billion in total liabilities, and a $428 million total stockholders' deficit. * * * HD Supply carries 'Caa2' probability of default rating and corporate family rating, with negative outlook, from Moody's Investors Service, and a 'B' corporate credit rating, with negative outlook, from Standard & Poor's Ratings Services. In April 2010, when Moody's downgraded the ratings to 'Caa2' from 'Caa1', it said, "The downgrade results from Moody's views that the construction industry, the main driver of HDS' revenues, will continue to be weak for the foreseeable future, pressuring the company's ability to generate meaningful levels of earnings and free cash flow relative to its debt." HD SUPPLY: Consummates Refinancing Transactions ----------------------------------------------- HD Supply, Inc., on April 12, 2012, consummated the following transactions in connection with the refinancing of the senior portion of its capital structure: * the issuance of $950 million of its 8.125% Senior Secured First Priority Notes due 2019; * the issuance of $675 million of its 11% Senior Secured Second Priority Notes due 2020; * the issuance of approximately $757 million of its 14.875% Senior Notes due 2020; * entry into a new senior ABL facility providing for senior secured revolving loans and letters of credit of up to a maximum aggregate principal amount of $1.5 billion; and * entry into a new senior term facility providing for term loans in an aggregate principal amount of $1 billion. The proceeds of the First Priority Notes, the Second Priority Notes, the Senior Notes, the Senior ABL Facility and the Senior Term Facility were used to (i) repay all amounts outstanding under the Existing Senior Secured Credit Facility, (ii) repay all amounts outstanding under the Existing ABL Credit Facility, (iii) repurchase all remaining outstanding Old Senior Notes and (iv) pay related fees and expenses. A copy of the Form 8-K is available for free at: http://is.gd/UV3tHm About HD Supply HD Supply, Inc., headquartered in Atlanta, Georgia, is one of the largest North American wholesale distributors supporting residential and non-residential construction and to a lesser extent electrical consumption and repair and remodeling. HDS also provides maintenance, repair and operations services. Its businesses are organized around three segments: Infrastructure and Energy; Maintenance, Repair & Improvement; and, Specialty Construction. HDS operates through approximately 800 locations throughout the U.S. and Canada serving contractors, government entities, maintenance professionals, home builders and professional businesses. The Company reported a net loss of $543 million for the year ended Jan. 29, 2012, a net loss of $619 million for the year ended Jan. 30, 2011, and a net loss of $514 million on $6.94 billion of net sales for the year ended Jan. 31, 2010. The Company's balance sheet at Jan. 29, 2012, showed $6.73 billion in total assets, $7.16 billion in total liabilities, and a $428 million total stockholders' deficit. * * * HD Supply carries 'Caa2' probability of default rating and corporate family rating, with negative outlook, from Moody's Investors Service, and a 'B' corporate credit rating, with negative outlook, from Standard & Poor's Ratings Services. In April 2010, when Moody's downgraded the ratings to 'Caa2' from 'Caa1', it said, "The downgrade results from Moody's views that the construction industry, the main driver of HDS' revenues, will continue to be weak for the foreseeable future, pressuring the company's ability to generate meaningful levels of earnings and free cash flow relative to its debt." HERCULES OFFSHORE: Files Fleet Status Report as of April 19 ----------------------------------------------------------- Hercules Offshore, Inc., posted on its Web site at http://www.herculesoffshore.com/a report entitled "Hercules Offshore Fleet Status Report". The Fleet Status Report includes the Hercules Offshore Rig Fleet Status (as of April 19, 2012), which contains information for each of the Company's drilling rigs, including contract dayrate and duration. The Fleet Status Report also includes the Hercules Offshore Liftboat Fleet Status Report, which contains information by liftboat class for March 2012, including revenue per day and operating days. A copy of the Status Report is available for free at: http://is.gd/9h4rEB About Hercules Offshore Hercules Offshore Inc. (NASDAQ: HERO) -- http://www.herculesoffshore.com/-- provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry in the United States, Gulf of Mexico and internationally. The Company provides these services to integrated energy companies, independent oil and natural gas operators and national oil companies. The Company operates in six business segments: Domestic Offshore, International Offshore, Inland, Domestic Liftboats, International Liftboats and Delta Towing. The Company reported a net loss of $76.12 million in 2011, a net loss of $134.59 million in 2010, and a net loss of $91.73 million in 2009. The Company's balance sheet at Dec. 31, 2011, showed $2 billion in total assets, $1.09 billion in total liabilities, and $908.55 million in stockholders' equity. * * * The Troubled Company Reported said on March 23, 2012, that Moody's Investors Service upgraded Hercules Offshore, Inc. Corporate Family Rating (CFR) and Probability of Default Rating (PDR) to B3 from Caa1 contingent upon the completion of its recently announced recapitalization plan. Hercules' B3 CFR reflects its jackup fleet, which consists primarily of standard specification rigs with an average age of about 30 years. Its rigs are geographically concentrated in the Gulf of Mexico (GoM), a market that experienced a slow-down after the Macondo well incident. However, over the last year a pick-up in permitting and activity levels in the GoM, has led to higher dayrates. For Hercules, the improving market conditions have stabilized its cash flow from operations, which are expected continue to improve for at least the next 18 to 24 months as old contracts roll into new contracts with higher dayrates. These improving market conditions support the decision to upgrade Hercules' CFR at this time. As reported by the TCR on Jan. 23, 2012, Standard & Poor's Ratings Services revised its outlook on Houston-based Hercules Offshore Inc. to stable from negative and affirmed its 'B-' corporate credit rating on the company. "The rating on the company's senior secured credit facility remains 'B-' (the same as the corporate credit rating on the company) with a recovery rating of '3', indicating our expectation of a meaningful (50% to 70%) recovery in the event of payment default," S&P said. "Our ratings on Hercules reflect its participation in the highly volatile and competitive shallow-water drilling and marine services segments of the oil and gas industry. The ratings also incorporate our expectation that day rates and utilization for the company's jack-up rigs in the U.S. Gulf of Mexico will remain robust throughout 2012. Moreover, we expect the company's domestic offshore operations will provide the majority of EBITDA generation in 2012, since its international offshore segment will perform more weakly compared with 2011 due to lower contract renewal day rates reflecting current market conditions. The ratings also incorporate the company's geographic and product diversification (provided by the its liftboat segments) and adequate liquidity, as well as the risks associated with the Securities and Exchange Commission's investigation into possible violations of securities law, including possible violations of the Foreign Corrupt Practices Act. The company is also the subject of a review by the U.S. Department of Justice (DOJ)," S&P said. HIGH PLAINS: Eide Bailly Raises Going Concern Doubt --------------------------------------------------- High Plains Gas, Inc., filed on April 16, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. Eide Bailly LLP, in Greenwood Village, Colorado, expressed substantial doubt about High Plains Gas' ability to continue as a going concern. The independent auditors noted that of the Company's significant operating losses. The Company reported a net loss of $57.48 million on $17.15 million of revenues for 2011, compared with a net loss of $5.48 million on $2.61 million of revenues for 2010. The Company's balance sheet at Dec. 31, 2011, showed $31.60 million in total assets, $40.60 million in total liabilities, and a stockholders' deficit of $9.00 million. A copy of the Form 10-K is available for free at: http://is.gd/C2iUU2 Houston, Texas-based High Plains Gas, Inc., is a provider of goods and services to regional end markets serving the energy industry. It produces natural gas in the Powder River Basin located in Northeast Wyoming. It provides construction and repair and maintenance services primarily to the energy and energy related industries mainly located in Wyoming and North Dakota. HOSTESS BRANDS: Teamsters Committed to Deal Before May 1 Ruling --------------------------------------------------------------- The Teamsters Union remains ready and willing to resume negotiations with Hostess Brands Inc. executives in an attempt to save the company following the agreement in bankruptcy court Friday that a decision would not be handed down before May 1. "We want to try to save Hostess and workers' jobs," said Teamsters General Secretary-Treasurer Ken Hall. "We want an agreement. And we remain ready and willing, as we have all along, to negotiate in good faith. We hope the company, which has been dragging its feet and engaging in regressive bargaining, is finally serious too." However, while key developments were occurring in bankruptcy court yesterday, Hostess CEO Greg Rayburn was engaged in a FOX News media blitz in an attempt to malign Hostess workers and their promised pensions, blaming them for the company's demise. Those very workers have sacrificed time and again to save the company while executives plundered it, giving themselves raises of up to 240 percent before declaring bankruptcy and halting payments to workers' pension plans." The company has a disturbing habit of trying to negotiate through the media and play the blame game, pointing fingers at its own workers instead of taking responsibility for mismanagement and looting," Hall said. Hostess workers have already taken cuts in pay and benefits totaling $110 million. The Teamsters' most recent proposal contains $150 million more a year in further savings." Where has all the money gone? The sad truth is that after all these sacrifices, Hostess has refused to make any payments into its own workers' pension plans since August," Hall said."Hostess telling pension plans how to operate is like a deadbeat dad giving parenting advice," Hall said. "This is not the way to come to an agreement. It is time for Hostess executives to realize that the only way to get an agreement is to keep their negotiating dates and meet directly with the union." The Teamsters Union maintains that any agreement must contain equality of sacrifice among all employees - union, non-union, management and executives. Also, there must be some structural changes to the company to help ensure that executives do not keep squandering the money that workers continue to give back in concessions. Those savings cannot continue to be siphoned off by executives in the form of big raises. The money must go back into the company to strengthen it and to make it operate more efficiently and effectively, to ensure it does not declare bankruptcy a third time. Founded in 1903, the International Brotherhood of Teamsters represents more than 1.4 million hard-working men and women in the United States, Canada and Puerto Rico including more than 7,500 employees of Hostess Brands, Inc. 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 head the legal team for the committee. HOWELL DEVELOPMENT: Case Summary & 9 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Howell Development Associates LLC 605 Pere Marquette Howell, MI 48855 Bankruptcy Case No.: 12-31665 Chapter 11 Petition Date: April 18, 2012 Court: U.S. Bankruptcy Court Eastern District of Michigan (Flint) Judge: Daniel S. Opperman Debtor's Counsel: Robert N. Bassel, Esq. P.O. Box T Clinton, MI 49236 Tel: (248) 677-1234 Fax: (248) 369-4749 E-mail: bbassel@gmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its nine largest unsecured creditors is available for free at: http://bankrupt.com/misc/mieb12-31665.pdf The petition was signed by Rex G. Lanyi, manager. HUB INTERNATIONAL: Moody's Affirms 'B3' CFR; Outlook Stable ----------------------------------------------------------- Moody's Investors Service has affirmed the ratings of Hub International Limited (Hub -- corporate family rating B3, probability of default rating B3) following the company's announcement that it is syndicating amendments and extensions of its senior secured credit facilities. The facilities to be amended and extended include senior secured term loans (rated B1), a US senior secured revolving credit facility (rated B1) and a Canadian senior secured revolving credit facility (not rated). The rating outlook for Hub is stable. Ratings Rationale "The proposed amendments are credit positive," said Bruce Ballentine, Moody's lead analyst for Hub, "as the company is extending maturity dates on a significant portion of its debt." For the proposed extensions to be fully effective, Hub must also refinance or repay specified amounts of its unsecured borrowings, namely its senior unsecured notes due December 2014 and its subordinated notes due June 2015, ahead of their respective maturity dates. Moody's believes that Hub has access to various funding sources and can meet these conditions. Hub's ratings reflect its solid market position in North American insurance brokerage, good diversification across products and geographic areas, and favorable operating margins. These strengths are tempered by the company's high financial leverage and limited fixed charge coverage since its leveraged buyout in 2007. Other challenges include the relatively soft, but improving, market for commercial property & casualty insurance and the weak economic recovery. The rating agency expects that Hub will continue to pursue a combination of organic growth and acquisitions. The acquisition strategy carries integration and contingent risks (e.g., exposure to errors and omissions), although Hub has a favorable track record in assimilating small and mid-sized brokers. Hub's adjusted debt-to-EBITDA ratio was 7.0x in 2011, based on Moody's methodology (which often differs from company or covenant calculations), while the adjusted (EBITDA - capex) coverage of interest was 1.7x. The leverage is somewhat high for Hub's rating category, but this is mitigated by the company's strong market presence and healthy operating margins. Factors that could lead to an upgrade of Hub's ratings include: (i) adjusted (EBITDA - capex) coverage of interest exceeding 2x, (ii) adjusted free-cash-flow-to-debt ratio exceeding 5%, and (iii) adjusted debt-to-EBITDA ratio below 5.5x. Factors that could lead to a rating downgrade include: (i) adjusted (EBITDA - capex) coverage of interest below 1.2x, (ii) adjusted free-cash-flow-to-debt ratio below 2%, or (iii) adjusted debt-to-EBITDA ratio above 8x. Moody's has assigned the following ratings (and loss given default (LGD) assessments) to the proposed amended and extended facilities: Senior secured revolving credit facility B1 (LGD2, 27%); Senior secured term loan B1 (LGD2, 27%); Incremental senior secured term loan B1 (LGD2, 27%). Moody's has affirmed the following ratings (and revised LGD assessments): Corporate family rating at B3; Probability of default rating at B3; Secured revolving credit facility due June 2013 at B1 (to LGD2, 27% from LGD2, 26%); Senior secured term loans due June 2014 at B1 (to LGD2, 27% from LGD2, 26%); Senior unsecured notes due December 2014 at Caa1 (to LGD5, 72% from LGD5, 71%); Subordinated notes due June 2015 at Caa2 (LGD6, 90%). The principal methodology used in this rating was Moody's Global Rating Methodology for Insurance Brokers and Service Companies published in February 2012. Hub, based in Chicago, Illinois, is a major North American insurance brokerage firm providing a variety of property and casualty, life and health, employee benefits and risk management products and services through offices located in the US, Canada and South America. The company generated total revenue of $876 million and net income of $7 million in 2011. Shareholders' equity was $539 million as of December 31, 2011. HWI GLOBAL: Suspending Filing of Reports with SEC ------------------------------------------------- HWI Global, Inc., filed a Form 15 notifying of its suspension of its duty under Section 15(d) to file reports required by Section 13(a) of the Securities Exchange Act of 1934 with respect to its common stock. Pursuant to Rule 12h-3, the Company is suspending reporting because there are currently less than 300 holders of record of the common shares. There were only 159 holders of the common shares as of April 18, 2012. About HWI Global HWI Global, Inc., headquartered in Pittsburgh, Pa., is a turnkey provider of cleanroom systems; designing, engineering, manufacturing, installing and servicing principal component systems for advanced cleanrooms. For the nine months ended Sept. 30, 2011, the Company has reported a net loss of $885,409 on $2.8 million of contract revenues earned, compared with net income of $4,326 on $2.7 million of contract revenues earned for the same period last year. The Company's balance sheet at Sept. 30, 2011, showed $1.1 million in total assets, $2.6 million in total current liabilities, and a stockholders' deficit of $1.5 million. As reported in the TCR on May 3, 2011, MaloneBailey, LLP, in Houston, expressed substantial doubt about IVT Software (now known as HWI Global)'s ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 31, 2010. The independent auditors noted that the Company has suffered recurring losses from operations. IMAGEWARE SYSTEMS: Registers Add'l 2-Mil. Shares Under Award Plan ----------------------------------------------------------------- Imageware Systems, Inc., filed with the U.S. Securities and Exchange Commission a Form S-8 registering additional 2.15 million shares of common stock issuable under the Company's Amended and Restated 1999 Stock Award Plan. The proposed maximum aggregate offering price is $2.47 million. A copy of the prospectus is available for free at http://is.gd/5BZZLb 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 reported a net loss of $3.18 million in 2011, compared with a net loss of $5.05 million in 2010. The Company's balance sheet at Dec. 31, 2011, showed $10.78 million in total assets, $16.49 million in total liabilities and a $5.71 million total shareholders' deficit. IMPERIAL PETROLEUM: Enters Into Joint Venture with Peak Concepts ---------------------------------------------------------------- Imperial Petroleum, Inc., provided update on its oil sands joint venture and business prospects. The Company's wholly-owned subsidiaries, Arrakis Oil Recovery, LLC, and Imperial Chemical Company executed a joint venture agreement to complete development of the Company's initial oil sand project in Kentucky. The Company organized a new entity named MidAmerica Oil Sands, LLC, to manage the joint venture on behalf of the Company and its joint venture partner, Peak Oil Sands LLC, a subsidiary of Peak Concepts, LLC. Peak has extensive experience in the development of oil and natural gas drilling ventures throughout the United States. Under the terms of the joint venture, Peak will provide $750,000 in development capital to complete the installation of facilities in Kentucky. The Company will provide a sublicense of its technology, access to SANDKLENE 950 chemical and its oil sand processing unit with a rated capacity at 1,000 barrels of oil per day. Peak and the Company will each own 50% of the joint venture proceeds from approximately 500 acres of oil sand acreage containing an estimated 10 million barrels of recoverable heavy oil, based on estimates compiled by public sources. Two other oil sand related activities will affect the Company in the near future. First, an oil sand mining venture using the Arrakis technology is proceeding as planned in a county adjacent to the Company's acreage in Kentucky and may become operational first. Site preparation is nearly completed to begin utilizing the first of two units, each rated at 1,000 barrels of oil per day, that are designated for the proposed operation. Imperial Chemical will provide SANDKLENE 950 to the operator of the project. Second, the Company has a royalty interest in proposed operations using the Arrakis technology in Canada and several other countries outside of the United States. Oil sand units are under construction in Canada for deployment there under the agreement that the Company completed last year. The timing of that deployment remains uncertain at this time. "Jeffrey Wilson, President of the Company, "We intend to move forward as quickly as possible to establish our own oil sand operations in Kentucky under the Peak joint venture, however we will likely obtain the benefit of the installation of the two units north of our acreage in Kentucky as that operation is using the Arrakis technology for its operations and we will be selling them chemical. We will continue to pursue other joint venture projects in Kentucky and elsewhere to utilize the oil sand technology for the benefit of the Company." A copy of the Joint Venture Agreement is available for free at: http://is.gd/yr4atx About Imperial Petroleum Headquartered in Evansville, Ind., Imperial Petroleum Inc. (OTC BB: IPMN) operates as a diversified energy and mineral mining company in the United States. Its oil and natural gas properties include the Coquille Bay field located in Plaqumines Parish, Louisiana; the Haynesville field located in Claiborne and Webster Parishes in north Louisiana; the Bastian Bay field located in Plaquemines parish, Louisiana; LulingField located in Guadalupe county, Texas; and the Shrewsbury field in Grayson County and the Claymour field in Todd County, western Kentucky. As reported by the TCR on June 24, 2011, the Company anticipates its current working capital will not be sufficient to meet its required capital expenditures and that the Company will be required to either access additional borrowings from its lender or access outside capital. Currently the Company projects it will require non-discretionary capital expenditures of approximately US$500,000 in the next fiscal year to re-establish and maintain economic levels of production at Coquille Bay. Without access to such capital for non-discretionary projects, the Company's production may be significantly curtailed or shut in and jeopardize its leases. Weaver Martin & Samyn, LLC, in Kansas City Missouri, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and is dependent upon obtaining debt financing for funds to meet its cash requirements. The Company's balance sheet at Oct. 31, 2011, showed $20.64 million in total assets, $20.02 million in total liabilities and $617,446 in total stockholders' equity. INFINITY ENERGY: Closes Transactions with Amegy and Off-Shore ------------------------------------------------------------- Infinity Energy Resources, Inc., on April 13, 2012, closed transactions with Amegy Bank, NA, and Off-Shore Finance, LLC. On Feb. 28, 2012, the Company had entered into definitive agreements with Amegy and Off-Shore relating to outstanding debt and other obligations it owed to them. At the closing, in conversion, exchange and payment in full of all debt and other obligations the Company owed to Amegy, the Company issued 130,000 shares of Series A Preferred Stock and 2,000,000 shares of common stock to Amegy, which also agreed to cancel a warrant exercisable to purchase 968,000 shares of common stock that the Company issued to it in February 2011. Also at the closing, the Company issued Off-Shore 15,016 shares of Series B Preferred Stock in conversion, exchange and payment in full of all debt and other obligations it owed to Off-Shore. The Series A Preferred and Series B Preferred are referred to as the "Series Preferred." As a result of the transactions with Amegy and Off-Shore, the Company cancelled debt, accrued interest and fees, and the derivative liability recorded relative to the Amegy warrant, all of which totaled $21,322,922 at December 31, 2011. The Company will record these transactions in the second quarter of 2012. The Series Preferred accrue a 6% dividend per annum and are convertible into common stock at a price of $6.50 per share. The Series Preferred automatically convert into common stock if the average of the closing prices of the common stock for 30 consecutive trading days equals at least $7.50 per share. The Company has the right to redeem the Series Preferred at any point for an amount equal to their issue price of $100 per share plus all accrued and unpaid dividends, subject to the holders' right to convert the Series Preferred into common stock and provided that the Series A Preferred is redeemed prior to the redemption of any of the Series B Preferred. In connection with the transactions, the Company filed a Certificate of Designations of Series A Preferred and Series B Preferred in the State of Delaware on March 22, 2012. A copy of the Form 8-K is available for free at: http://is.gd/oFxCsu About Infinity Energy Overland Park, Kansas-based Infinity Energy Resources, Inc., and its subsidiaries, are engaged in the acquisition and exploration of oil and gas properties offshore Nicaragua in the Caribbean Sea. The Company reported a net loss of $3.53 million in 2011, compared with a net loss of $3.77 million in 2010. The Company's balance sheet at Dec. 31, 2011, showed $4.55 million in total assets, $31.33 million in total liabilities, and a $26.77 million total stockholders' deficit. For 2011, Ehrhardt Keefe Steiner & Hottman PC, in Denver, Colorado, noted that the Company has suffered recurring losses and has a significant working capital deficit, which raises substantial doubt about its ability to continue as a going concern. INTEGRITY INSURANCE: Court Backs $35-Mil. Asbestos Claim Denial --------------------------------------------------------------- Martin Bricketto at Bankruptcy Law360 reports that a New Jersey appeals court ruled Wednesday that Integrity Insurance Co.'s liquidator properly exercised his discretion in denying recovery to a class of more than 30,000 members with a $35 million contingent claim over alleged asbestos injuries. INTELLICELL BIOSCIENCES: Incurs $32.8 Million Net Loss in 2011 -------------------------------------------------------------- Intellicell Biosciences, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $32.84 million on $99,192 of revenue for the year ended Dec. 31, 2011. The Company reported a net loss of $454,988 on $164,095 of revenue for the period from Aug. 13, 2010, through Dec. 31, 2010. The Company's balance sheet at Dec. 31, 2011, showed $1.41 million in total assets, $19.15 million in total liabilities and a $17.73 million total stockholders' deficit. For 2011, Rosen Seymour Shapss Martin & Company LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has experienced significant losses resulting in a working capital deficiency and shareholders' deficit. A copy of the Form 10-K is available for free at: http://is.gd/b9CzHP About Intellicell Biosciences Intellicell BioSciences, Inc., headquartered in New York, N.Y., was formed on Aug. 13, 2010, under the name "Regen Biosciences, Inc." as a pioneering regenerative medicine company to develop and commercialize regenerative medical technologies in large markets with unmet clinical needs. On Feb. 17, 2011, the company changed its name from "Regen Biosciences, Inc." to "IntelliCell BioSciences Inc". To date, IntelliCell has developed proprietary technologies that allow for the efficient and reproducible separation of stromal vascular fraction (branded "IntelliCell(TM)") containing adipose stem cells that can be performed in tissue processing centers and in doctors' offices. INTELLICELL BIOSCIENCES: Has License Agreement with Regen Medical ----------------------------------------------------------------- Intellicell Biosciences, Inc., entered into a technology license and administrative services agreement with Regen Medical P.C., the medical practice which is owned by, and through which, the Company's Chief Executive Officer, Dr. Steven Victor. Regen Medical engages in the practice of cosmetic dermatology. Pursuant to the Agreement, the Company, among other things: (i) granted Regen Medical the non-exclusive and non-assignable license to utilize the Company's proprietary process and technology for its patients; (ii) granted Regen Medical a license to use a laboratory which can be used by Regen Medical for use of the Company's proprietary process; and (iii) was appointed as the exclusive manager and administrator of Regen Medical's operations which relates to the implementation of the Company's proprietary process as well as Regen Medical's cosmetic dermatology practice; and (iv) was appointed the sole provider of non-medical managerial, administrative and business functions for Regen Medical's cosmetic dermatology practice. The Agreement is effective as of April 16, 2012, and will continue until April 16, 2017. In consideration for the services to be provided under the Agreement, Regen Medical will pay the Company: (i) an annual administrative fee of $600,000, payable in equal monthly installments during the term of the term of the agreement; (ii) an annual technology license fee of $120,000, payable in equal monthly installments during the term of the term of the agreement, for the use of our proprietary process; and (iii) a processing fee of $1,000 for each tissue processing case that utilizes our proprietary process. The Company will also be entitled to a an annual performance fee during the term of either (i) $150,000, in the event total income to Regen Medical exceeds $5,500,000 or (ii) $200,000, in the event that total income to Regen Medical exceeds $7,000,000. A copy of the Agreement is available for free at: http://is.gd/pq2yvo About Intellicell Biosciences Intellicell BioSciences, Inc., headquartered in New York, N.Y., was formed on Aug. 13, 2010, under the name "Regen Biosciences, Inc." as a pioneering regenerative medicine company to develop and commercialize regenerative medical technologies in large markets with unmet clinical needs. On Feb. 17, 2011, the company changed its name from "Regen Biosciences, Inc." to "IntelliCell BioSciences Inc". To date, IntelliCell has developed proprietary technologies that allow for the efficient and reproducible separation of stromal vascular fraction (branded "IntelliCell(TM)") containing adipose stem cells that can be performed in tissue processing centers and in doctors' offices. The Company's balance sheet at Sept. 30, 2011, showed $1.0 million in total assets, $21.2 million in total current liabilities, and a stockholders' deficit of $20.2 million. "The Company has incurred losses since inception resulting in an accumulated deficit of $20.1 million and a working capital deficit of $21.0 million as of Sept. 30, 2011, respectively, however, if the non-cash expense related to the Company's derivative liability is excluded the accumulated deficit amounted to $3.1 million and working capital deficit amounted to $3.7 million, respectively,? the Company said in the filing. "Further losses are anticipated in the continued development of its business, raising substantial doubt about the Company's ability to continue as a going concern." INTERLEUKIN GENETICS: Draws $1.3-Mil. Under Pyxis Credit Facility ----------------------------------------------------------------- Interleukin Genetics, Inc., elected to draw down the remaining $1,316,255 available under the Company's existing convertible credit facility with its majority stockholder Pyxis Innovations Inc., an affiliate of Alticor Inc., and issued a convertible promissory note to Pyxis in that amount. The credit facility is in the aggregate amount of $14,316,255 and in the form of a note purchase agreement, entered into by the Company and Pyxis on Oct. 23, 2002, as amended. Prior to the April 13, 2012, draw down, on June 10, 2008, the Company drew down $4,000,000, on May 29, 2009, the Company drew down $1,000,000, on Nov. 9, 2009, the Company drew down $2,000,000, on Feb. 1, 2010, the Company drew down $2,000,000, on Sept. 30, 2010, the Company drew down $2,000,000, and on Nov. 9, 2011, the Company drew down $2,000,000 under this credit facility. The note bears interest at a variable rate equal to the "prime rate" and the interest is payable quarterly. Prior to the maturity date, any portion or the entire outstanding principal and any accrued but unpaid interest under the note is convertible at Pyxis's election into shares of the Company's common stock at a price of $5.6783 per share. As of the date the note was issued, the note was convertible into an aggregate of 231,804 shares of the Company's common stock. After taking into account the April 13, 2012, draw down, the Company has no remaining availability to borrow under the credit facility and the aggregate principal amount of $14,316,255, plus interest, is due and payable in full on June 30, 2012. About Interleukin Waltham, Mass.-based Interleukin Genetics, Inc., is a personalized health company that develops unique genetic tests to provide information to better manage health and specific health risks. For the year ended Dec. 31, 2011, Grant Thornton LLP, in Boston, Massachusetts, expressed substantial doubt about Interleukin Genetics' ability to continue as a going concern. The independent auditors noted that the Company incurred a net loss of $5.02 million during the year ended Dec. 31, 2011, and, as of that date, the Company's current liabilities exceeded its current assets by $12.27 million and its total liabilities exceeded total assets by $11.4 million. The Company reported a net loss of $5.0 million on $2.9 million of revenue for 2011, compared with a net loss of $6.0 million on $2.0 million of revenue for 2010. The Company's balance sheet at Dec. 31, 2011, showed $3.0 million in total assets, $14.4 million in total liabilities, and a stockholders' deficit of $11.4 million. INTERNATIONAL HOME: Files for Chapter 11 in Puerto Rico ------------------------------------------------------- International Home Products, Inc., filed a Chapter 11 petition (Bankr. D. P.R. Case No. 12-02997) in Old San Juan, Puerto Rico, on April 19, 2012. The Debtor has tapped Carmen D. Conde Torres as counsel. Ms. Torres is charging $300 per hour for her services. Paralegal and associates of Ms. Torres' firm will bill the Debtor $150 to $275 per hour. International Home -- http://www.ollaslifetime.com/-- is a Hato Rey, Puerto Rico-based privately held retailer of house-ware. The Debtor disclosed $66.16 million in assets and $43.35 million in liabilities. It projects that funds will be available for distribution to unsecured creditors. The Debtor owns commercial and other real property in Puerto Rico and Florida valued at an aggregate of $17 million. The Debtor has also interests in Keyman insurance policies worth $6.5 million and accounts receivables totaling $40 million. Secured debt total $17 million. The statement of financial affairs say that the Debtor generated income of $15.98 million in 2010, $10.6 million in 2011 and $2 million for the period Jan. 1 to April 18, 2012. The president and Treasurer A. Berti Foti received compensation of $388,000 in 2011. A copy of the schedules and statement attached to the petition is available for free at http://bankrupt.com/misc/prb12-02997.pdf INTERNATIONAL HOME: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: International Home Products, Inc. Bda. Buena Vista 167 Quisqueya Hato Rey, PR 00917 Bankruptcy Case No.: 12-02997 Chapter 11 Petition Date: April 19, 2012 Court: U.S. Bankruptcy Court District of Puerto Rico (Old San Juan) About the Debtor: International Home -- http://www.ollaslifetime.com/-- is a Hato Rey, Puerto Rico-based privately held retailer of house-ware. Debtor's Counsel: Carmen D. Conde Torres, Esq. 254 San Jose Street, 5th Floor SAN JUAN, PR 00901-1523 Tel: (787) 729-2900 Fax: (787) 729-2203 E-mail: notices@condelaw.com Scheduled Assets: $66,155,798 Scheduled Liabilities: $43,350,031 The petition was signed by Andrew Bert Foti, president. Debtor's List of Its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ First Bank -- $23,190,450 P.O. Box 9146 San Juan, PR 00908-0146 Regalware, Inc. -- $932,354 P.O. Box 395 Kewaskum, WI 53040-0395 Arteaga Arteaga -- $249,285 P.O. Box 70336 San Juan, PR 00936-8336 IPFS Corporation -- $57,588 Rivera Tulla & Ferrer -- $52,648 AEE -- $39,418 Triple-S Salud -- $30,000 Encore 1994, LLC -- $26,000 Securitas Security Services -- $13,913 Of PR, Inc. ADP Covina -- $10,914 Transworld Systems, Inc. -- $10,621 De Lage Landen -- $9,410 AT&T Mobility -- $7,703 Islandwide Logistics -- $6,950 Imex Zone Logistics, Inc. -- $6,350 Postal Center Caribbean, Inc. -- $6,207 Axesa Servicios de Informacion -- $5,426 Aquino, de Cordova Alfaro & Co. -- $4,952 Nutri-Stahl, USA Inc. -- $4,812 Manuel Porro-Vizcarra -- $4,410 IPALCO ENTERPRISES: Fitch Cuts Issuer Default Rating to 'BB+' ------------------------------------------------------------- Fitch Ratings has downgraded the Issuer Default Rating (IDR) of IPALCO Enterprises to 'BB+' from 'BBB-' and downgraded the instrument rating of IPALCO's senior secured notes by one notch to 'BB+' from 'BBB-'. In addition, Fitch has affirmed the IDR of Indianapolis Power & Light (IPL), IPALCO's wholly owned subsidiary, at 'BBB-' as well as affirmed IPL's security ratings. Approximately $1.8 billion of outstanding debt is affected by these rating actions. The Rating Outlook is Stable. IPALCO is a holding company with no tangible assets except IPL stock and is a subsidiary of highly leveraged parent, AES Corporation (AES, rated with an IDR of 'BB-', Outlook Stable, by Fitch). IPALCO's ratings reflect its highly leveraged capital structure and the sole support it receives from the upstream distributions from IPL. The ratings of IPALCO and IPL are linked, as both depend upon the cash flows of IPL. The IDRs of both entities consider the combined leverage, which consists of approximately $1 billion of debt at IPL and $800 million of debt at IPALCO. The ratings of IPALCO and IPL are not tightly linked to the IDR of the ultimate parent, AES. The one-notch downgrade to IPALCO's IDR reflects Fitch's expectation of weakening credit metrics at the consolidated entity primarily due to significant levels of capital spending for environmental compliance at IPL. In order to comply with the Environmental Protection Agency's (EPA) Mercury and Air Toxics Standards (MATS), IPL has publically stated that it may need to spend between $500 million-$900 million over 2012-16. In its rating case, Fitch has assumed that the environmental expenditures will be toward the midpoint of this range. Fitch has further assumed that IPL finances this expenditure at 55% debt/45% equity, consistent with its current and historical levels of capital structure, leading to an increase in debt at the consolidated entity and pressure on the credit metrics. In Fitch's projection, the equity contribution to finance the incremental capex is generated by a reduction in upstream distribution to IPALCO as well as equity infusion from AES, the ultimate parent. Fitch notes the enhanced financial flexibility at AES to provide equity support to IPALCO. IPL owns approximately 3,600 megawatts (MW) of generation assets, of which 79% is coal-fired. The five largest and most economical units are Harding 7 and Petersburg 1, 2, 3, and 4, which represent aggregate nameplate capacity of greater than 2,300 MW, or more than 80% of IPL's total coal-generation fleet. To comply with MATS, IPL is considering incremental investments for those units, such as installing fabric filters (baghouses) and/or active carbon injection to control mercury, upgrading existing electrostatic precipitators on Petersburg 3 and 4 units, and replacing wet ash ponds with dry ash disposal. The remaining six units are relatively small (less than 120 MW each), and have been identified by Fitch as candidates for retirement. Fitch's current forecasts do not incorporate any capital expenditures for replacement capacity that might be needed in the 2016 timeframe. All environment compliance expenditures are likely to be recoverable in customers' rates. Indiana Senate Bill 29 established the Environment Compliance Cost Recovery Adjustment (ECCRA) mechanism, which allows for full recovery of environmental projects and expenditures relating to controlling air emissions. Indiana Senate Bill 251, which became law in May 2011, applies to the costs incurred to comply with other federal mandates, including EPA regulations of emissions other than air emissions, such as costs relating to EPA regulations of cooling water intakes or ash disposal. Filings for ECCRA are made every six months. As a result, Fitch expects timely recovery on the environment expenditures without a requirement of a base rate application. Hence, Fitch forecasts the decline in credit metrics at IPALCO to be temporary over 2012-2015 and expects credit metrics to recover by 2016. Fitch also expects pressure on credit metrics from lower wholesale power pricing environment at IPL, continued tepid growth in retail sales, a rise in operating costs including pension expenses and the need for higher pension contributions over the next few years. IPL has not had a formal base rate case since 1996, but has managed to earn attractive return on equity (ROE) with ongoing adjustments for fuel and environmental expenses. Given the adequacy of IPL's earned ROE, Fitch does not foresee an IPL rate case filing in the next two years. Fitch's forecast anticipates erosion in IPL's ROE by 2014-2015 that would warrant a base rate application. Fitch expects the consolidated funds flow from operations (FFO) to total debt to decline to 8%-10% levels by 2014 before recovering to 14%-15% by 2016. Fitch expects the total debt to EBITDA ratio to peak at approximately 5.0 times (x) before declining to 4.0x- 4.5x by 2016. The forecasted range of credit metrics in 2016 is consistent with Fitch's guideline ratios for a 'BB+' issuer. Fitch has notched IPL's IDR one level above that of IPALCO. There is no longer any explicit regulatory ring-fencing between IPL and IPALCO. However, IPL's credit benefits from moderately protective covenants in IPL's financings. IPL's mortgage bonds limit the amount of dividends to IPALCO to the amount of retained earnings, and its credit facility has a covenant that permits payment of distributions to IPALCO only if the debt to capital is no greater than 65%. The terms of IPALCO's $800 million notes provide a modest degree of separation between IPALCO and AES. IPALCO's total debt is limited to $1 billion (versus $800 million currently outstanding). The ratio of IPALCO's EBITDA to interest must exceed 2.5x, and debt cannot exceed 67% of total capitalization on an adjusted basis to make a distribution or intercompany loan to its parent, according to IPALCO's articles of incorporation. Changing the articles of incorporation would require shareholder approval by AES, IPALCO board approval, and filing the revision with the secretary of state. IPALCO and IPL maintain separate identity from AES, and do not mingle their cash with that of AES. Fitch does not maintain a close linkage between the ratings of AES and those of IPALCO and IPL, but any material weakening of the credit of AES could adversely affect Fitch's ratings of IPALCO and IPL. Fitch notes that IPL's individual leverage based on cash flow measures is low relative to Fitch guidelines for the 'BBB-' IDR, and credit ratios are robust and can withstand significant deterioration within the existing rating category. Fitch anticipates IPL's FFO to debt ratio to weaken to 16%-17% by 2014 before recovering to more than 20% by 2016. Similarly, the debt to EBITDA is projected to peak at approximately 3.0x, before declining to 2.5x. IPL's forecasted credit metrics in 2016 are consistent with Fitch benchmarks for companies with IDRs in the range of 'A' to 'BBB+'. IPL's current ratings are constrained by the additional leverage at IPALCO and the need for a high proportion of IPL's earnings to be upstreamed to IPALCO as dividends to support IPALCO debt. IPL benefits from the stable regulatory and business environment in Indiana. IPL has minimal commodity price exposure due to a regulatory pass-through mechanism that allows the utility to recover fuel and purchased power costs on a timely basis. As mentioned, IPL is also able to recover investments to bring its coal-fired power plants into environmental compliance using a rate-tracker mechanism. The customer base is stable and well diversified and volumetric risk is mitigated by a block retail rate structure. What Could Trigger a Rating Action Ratings Upgrade Unlikely: Positive rating actions are unlikely for several years during a period of rising capex and external financing needs. Increased Leverage: If IPALCO does not have access to equity sources and relies on debt to fund future environmental capex, the ratings for IPALCO and IPL could decline. Cash Flow Could Decline: Rising expenses not subject to tracker adjustments or sales declines would reduce cash flow at IPL. This would place greater pressure on the upstream dividends and credit ratios of IPALCO due to the additional leverage. A delay in rate case filing or lack of adequate rate relief could also materially weaken the credit metrics as compared to Fitch's current forecasts. Adverse Regulatory Developments: Any change that reduces the likelihood of timely recovery of the costs of fuel, purchased power, or environmental compliance, or imputes less than a full income tax rate to IPL would adversely affect ratings of IPALCO and IPL. Higher than Anticipated Capex: Capital expenditures in excess of Fitch's current forecasts could accentuate the stress that the combined entity will undergo over the next three years. Fitch has not factored in any additional capex at IPL related to potential new generation or repowering of existing coal-fired capacity. Fitch has assumed that the capacity lost due to any potential retirements of smaller coal units can be replaced initially with power purchase agreements. Fitch downgrades the following with a Stable Outlook: IPALCO Enterprises, Inc. Long-term IDR to 'BB+' from 'BBB-'; Senior secured debt to 'BB+' from 'BBB-'. Fitch affirms the following with a Stable Outlook: Indianapolis Power & Light Co. Long-term IDR at 'BBB-'; Senior secured debt at 'BBB+'; Secured pollution control revenue bonds at 'BBB+'; Unsecured pollution control revenue bonds at 'BBB'; Preferred stock at 'BB+'. J. MOSS: Voluntary Chapter 11 Case Summary ------------------------------------------ Debtor: J. Moss Investments, Inc. P.O. Box 280 Zapata, TX 78076-0280 Bankruptcy Case No.: 12-50105 Chapter 11 Petition Date: April 18, 2012 Court: U.S. Bankruptcy Court Southern District of Texas (Laredo) Judge: David R. Jones Debtor's Counsel: Patricia Baron Tomasco, Esq. JACKSON WALKER LLP 100 Congress Avenue, Suite 1100 Austin, TX 78701 Tel: (512) 236-2076 Fax: (512) 691-4438 E-mail: ptomasco@jw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Darren Kolbe, president. JEFFERSON COUNTY: Ala. Counties, Cities Can File Bankruptcy ----------------------------------------------------------- Katy Stech at Dow Jones' Daily Bankruptcy Review reports that Alabama's top court ruled that the state's struggling cities and counties have the power to file for Chapter 9 bankruptcy protection, a decision that largely frees the state's most populous metropolitan area to move ahead with its five-month-old bankruptcy case. About Jefferson County Jefferson County has its seat in Birmingham, Alabama. It has a population of 660,000. Jefferson County filed a bankruptcy petition under Chapter 9 (Bankr. N.D. Ala. Case No. 11-05736) on Nov. 9, 2011, after an agreement among elected officials and investors to refinance $3.1 billion in sewer bonds fell apart. John S. Young Jr. LLC was appointed as receiver by Alabama Circuit Court Judge Albert Johnson in September 2010. Jefferson County's bankruptcy represents the largest municipal debt adjustment of all time. The county said that long-term debt is $4.23 billion, including about $3.1 billion in defaulted sewer bonds where the debt holders can look only to the sewer system for payment. The county said it would use the bankruptcy court to put a value on the sewer system, in the process fixing the amount bondholders should be paid through Chapter 9. Judge Thomas B. Bennett presides over the Chapter 9 case. Lawyers at Bradley Arant Boult Cummings LLP and Klee, Tuchin, Bogdanoff & Stern LLP, led by Kenneth Klee, represent the Debtor as counsel. Kurtzman Carson Consultants LLC serves as claims and noticing agent. Jefferson estimated more than $1 billion in assets. The petition was signed by David Carrington, president. The bankruptcy judge in January 2012 ruled that the state court- appointed receiver for the sewer system largely lost control as a result of the bankruptcy. Before deciding whether Jefferson County is eligible for Chapter 9, the bankruptcy judge will allow the Alabama Supreme Court to decide whether sewer warrants are the equivalent of "funding or refunding bonds" required under state law before a municipality can be in bankruptcy. U.S. District Judge Thomas B. Bennett ruled in March 2012 that Jefferson County is eligible under state law to pursue a debt restructuring under Chapter 9. Holders of more than $3 billion in defaulted sewer debt had challenged the county's right to be in Chapter 9. JETSTAR PARTNERS: Files Schedules of Assets and Liabilities ----------------------------------------------------------- Jetstar Partners Ltd. filed with the Bankruptcy Court for the Northern District of Texas its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $10,000,000 B. Personal Property $1,435,476 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $7,612,047 E. Creditors Holding Unsecured Priority Claims $206,753 F. Creditors Holding Unsecured Non-priority Claims $41,559 ----------- ----------- TOTAL $11,435,476 $7,860,399 A full text copy of the company's scheduled of assets and liabilities is available free at: http://bankrupt.com/misc/JETSTAR_PARTNERS_sal.pdf About Jetstar Partners Jetstar Partners, Ltd., was formed on Oct. 14, 1999, for the purpose of owning and developing real property in Dallas County, Texas. Jetstar owns and operates certain real property in Irving, Dallas County. Collinternational IV, Inc., a Texas corporation, is the sole general partner of Jetstar. Jetstar Partners, Ltd., filed a bare-bones Chapter 11 petition (Bankr. N.D. Tex. Case No. 12-31444) on March 5, 2012. The partnership estimated assets of $10 million to $50 million and debts of up to $10 million. Judge Harlin DeWayne Hale oversees the case. The Debtor is represented by Jeffrey Erler, Esq., Cynthia W. Cole, Esq., and Nicole M. Eason, Esq., at Bell Nunnally & Martin LLP. JETSTAR PARTNERS: Hires Bell Nunnally as Counsel ------------------------------------------------ Jetstar Partners Ltd. asks permission from the U.S. Bankruptcy Court to employ Bell Nunnally & Martin LLP as counsel to provide, among others, these services: (a) advise the Debtor of its rights, powers, and duties as debtor and debtor-inpossession; (b) take all necessary actions to protect and preserve the estate of the Debtor, including the prosecution of actions on the Debtor's behalf, the defense of actions commenced against the Debtor, the negotiation of disputes in which the Debtor is involved and the preparation of objections to claims filed against the estate; and (c) prepare on behalf of the Debtor, as debtor-in-possession, all necessary motions, applications, answers, orders, reports, and papers in connection with the administration of the estate. Jeffrey Erler, Esq., a partner at Bell Nunnally, attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The Firm's rates are: Personnel Position Rate --------- -------- ---- Jeffrey R. Erler Partner $410 per hour Cynthia W. Cole Sr. Counsel $375 per hour Nicole M Eason Associate $255 per hour Cynthia Bunker Paralegal $155 per hour About Jetstar Partners Jetstar Partners, Ltd., was formed on Oct. 14, 1999, for the purpose of owning and developing real property in Dallas County, Texas. Jetstar owns and operates certain real property in Irving, Dallas County. Collinternational IV, Inc., a Texas corporation, is the sole general partner of Jetstar. Jetstar Partners, Ltd., filed a bare-bones Chapter 11 petition (Bankr. N.D. Tex. Case No. 12-31444) on March 5, 2012. The partnership estimated assets of $10 million to $50 million and debts of up to $10 million. Judge Harlin DeWayne Hale oversees the case. KAISER DEVELOPMENT: Case Summary & 2 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Kaiser Development Corporation 3975 Lakefield Court, Suite 112 Suwanee, GA 30024 Bankruptcy Case No.: 12-21468 Chapter 11 Petition Date: April 18, 2012 Court: U.S. Bankruptcy Court Northern District of Georgia (Gainesville) Debtor's Counsel: Evan M. Altman, Esq. 8325 Dunwoody Place, Building 2 Atlanta, GA 30350-3307 Tel: (770) 394-6466 Fax: (678) 405-1903 E-mail: evan.altman@laslawgroup.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its two largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/ganb12-21468.pdf The petition was signed by Ray Kaiser, president. LEAGUE NOW: Harris Rattray Raises Going Concern Doubt ----------------------------------------------------- League Now Holdings Corporation filed on April 16, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. Harris F. Rattray CPA, in Pembroke Pines, Florida, expressed substantial doubt about League Now's ability to continue as a going concern. The independent auditor noted that the Company has incurred accumulated net losses of $207,200 and needs to raise additional funds to meet its obligations and sustain its operations. The Company reported net profit of $65,400 on $9,800 of revenues for 2011, compared with net income of $1,132 on $64,000 of revenues for 2010. Results for 2011 include other income-debt forgiven of $80,600. The Company's balance sheet at Dec. 31, 2011, showed $1.21 million in total assets, $1.30 million in total liabilities, and a stockholders' deficit of $85,400. A copy of the Form 10-K is available for free at: http://is.gd/F2w5HH Brecksville, Ohio-based League Now Holdings Corporation, through its subsidiary, Infiniti Systems Group, Inc., provides technology integration services to businesses in the midwestern United States. LEVEL 3: Subsidiary Provides Full Guarantee to 8.625% Notes ----------------------------------------------------------- Level 3 Financing, Inc., a wholly owned subsidiary of Level 3 Communications, Inc., entered into a Supplemental Indenture, dated as of April 18, 2012, to the Indenture, dated as of Jan. 13, 2012, among Parent, as guarantor, Level 3 Financing, as issuer and The Bank of New York Mellon Trust Company, N.A., as trustee, relating to Level 3 Financing's 8.625% Senior Notes due 2020. The Guarantee Supplemental Indenture was entered into among Level 3 Financing, Level 3 Communications, LLC, a wholly owned subsidiary of Parent, and the Trustee. Pursuant to the Guarantee Supplemental Indenture, Level 3 LLC has provided an unconditional, unsecured guaranty of the Notes. The Guarantee Supplemental Indenture is available for free at http://is.gd/nrej7D On April 18, 2012, Level 3 Financing entered into an additional Supplemental Indenture, dated as of April 18, 2012, to the Indenture. The Subordination Supplemental Indenture was entered into among Level 3 Financing, Parent, Level 3 LLC and the Trustee. Pursuant to the Subordination Supplemental Indenture, the unconditional, unsecured guaranty of Level 3 LLC of the Notes is subordinated in any bankruptcy, liquidation or winding up proceeding of Level 3 LLC to all obligations of Level 3 LLC under the Level 3 Financing Amended and Restated Credit Agreement, dated as of March 13, 2007. The Subordination Supplemental Indenture is available for free at http://is.gd/FrbkCp About Level 3 Communications Headquartered in Broomfield, Colorado, Level 3 Communications, Inc., is a publicly traded international communications company with one of the world's largest communications and Internet backbones. The Company reported a net loss of $756 million in 2011, a net loss of $622 million in 2010, and a net loss of $618 million in 2009. The Company's balance sheet at Dec. 31, 2011, showed $13.18 billion in total assets, $11.99 billion in total liabilities, and $1.19 billion in total stockholders' equity. * * * Level 3 Communications carries a 'Caa1' corporate family rating, and 'Caa2' probability of default rating, with negative outlook from Moody's, a 'B-' issuer default rating from Fitch, and 'B-' long term issuer credit ratings from Standard & Poor's. LEVEL 3: To Exchange $900MM 8.625% Senior Notes for New Notes ------------------------------------------------------------- Level 3 Financing, Inc., is offering to exchange up to $900,000,000 principal amount of its 8.625% Senior Notes due 2020 which have been registered under the Securities Act of 1933 for any and all of its outstanding unregistered 8.625% Senior Notes due 2020 guaranteed by Level 3 Communications, Inc., and Level 3 Communications, LLC. The terms of the new notes are substantially identical to the terms of the original notes that were issued on Jan. 13, 2012, except that the new notes will be registered under the Securities Act, will not contain any legend restricting their transfer, registration rights or provisions for special interest and will bear different CUSIP numbers. There is no established trading market for the new notes, and neither the Issuer nor Level 3 Communications, Inc., intends to apply for listing of the new notes on any securities exchange. The original notes are, and the new notes will be, fully and unconditionally and jointly and severally guaranteed on an unsubordinated unsecured basis by Level 3 Communications, Inc., and Level 3 Communications, LLC. None of the Issuer, Level 3 Communications, Inc. or Level 3 Communications, LLC, will receive any proceeds from issuance of the new notes in the exchange offer. A copy of the Form S-4 is available for free at: http://is.gd/aK3xhK About Level 3 Communications Headquartered in Broomfield, Colorado, Level 3 Communications, Inc., is a publicly traded international communications company with one of the world's largest communications and Internet backbones. The Company reported a net loss of $756 million in 2011, a net loss of $622 million in 2010, and a net loss of $618 million in 2009. The Company's balance sheet at Dec. 31, 2011, showed $13.18 billion in total assets, $11.99 billion in total liabilities, and $1.19 billion in total stockholders' equity. * * * Level 3 Communications carries a 'Caa1' corporate family rating, and 'Caa2' probability of default rating, with negative outlook from Moody's, a 'B-' issuer default rating from Fitch, and 'B-' long term issuer credit ratings from Standard & Poor's. LEVI STRAUSS: Starbucks CFO Troy Alstead Appointed to Board ----------------------------------------------------------- Levi Strauss & Co. (LS&Co.) has elected Troy Alstead to its Board of Directors effective immediately, expanding its Board to ten members. He is currently chief financial officer and chief administrative officer of Starbucks Corporation. "Troy Alstead is a highly respected business leader whose experience and skill set complement the strategic direction of Levi Strauss & Co.," said Stephen C. Neal, Chairman of Levi Strauss & Co. "His extensive financial and operational expertise, as well as his extensive experience building brands in international markets, will be invaluable to our Board of Directors as we continue a course to accelerate growth and profitability on a global scale." Mr. Alstead joined Starbucks Corporation in 1992 and has held several leadership roles at the company, both domestic and international. He was one of the original members of the Starbucks International team, contributing to the development of the international business from the beginning. He later led the company's business in Europe, Middle East, and Africa. He served as senior vice president, Global Finance and Business Operations from August 2007 to April 2008 and held the position of chief operating officer, Starbucks Greater China from April 2008 to October 2008. Mr. Alstead was named chief financial officer and chief administrative officer in November 2008. Before joining Starbucks, Mr. Alstead worked for several years in various finance, accounting, and auditing roles, domestically and internationally, for NCR Corporation and Egghead Software. He holds a Bachelor of Arts from the University of Washington. Mr. Alstead is a frequent volunteer in the Greater Seattle Community and in 2012, he was recognized as CFO of the year by the Puget Sound Business Journal. "I've worn Levi's jeans my entire life and I am honored to join the Levi Strauss & Co. board of directors," said Mr. Alstead. "Around the world, the Levi's and the Dockers brands are recognized for their quality and unique craftsmanship and the company is known for its commitment to profits through principles. I look forward to working with the board of directors to help drive long-term profitable growth and shareholder value while staying true to its core values." About Levi Strauss & Co. Headquartered in San Francisco, California, Levi Strauss & Co. -- http://www.levistrauss.com/-- is one of the world's leading branded apparel companies. The Company designs and markets jeans, casual and dress pants, tops, jackets and related accessories, for men, women and children under the Levi's(R), Dockers(R) and Signature by Levi Strauss & Co.(TM). The Company markets its products in three geographic regions: Americas, Europe, and Asia Pacific. The Company's balance sheet at Feb. 26, 2012, showed $3.21 billion in total assets, $3.30 billion in total liabilities, $6.20 million in temporary equity, and a $96.49 million total stockholders' deficit. * * * The Company carries a 'B+' corporate credit rating from Standard & Poor's, a 'B1' corporate family rating from Moody's Investors Service and a 'B+' issuer default rating from Fitch Ratings. As reported by the TCR on March 24, 2011, Fitch Ratings downgraded its Issuer Default Rating on Levi Strauss & Co. to 'B+' from 'BB-'. The downgrade of the IDR reflects Levi's soft operating trends and margin compression, continued high financial leverage, and Fitch's expectation that Levi's financial profile will not show meaningful improvement in the next one to two years. MANAUSA HOLDINGS: Case Summary & 13 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Manausa Holdings, LLC 1140 Capital Circle SE, Suite 2 Tallahassee, FL 32301 Bankruptcy Case No.: 12-40249 Chapter 11 Petition Date: April 18, 2012 Court: U.S. Bankruptcy Court Northern District of Florida (Tallahassee) Debtor's Counsel: Brian G. Rich, Esq. BERGER SINGERMAN LLP 125 S. Gadsden Street, Suite 300 Tallahassee, FL 32301 Tel: (850) 561-3010 Fax: (850) 561-3013 E-mail: brich@bergersingerman.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its 13 largest unsecured creditors is available for free at: http://bankrupt.com/misc/flnb12-40249.pdf The petition was signed by Joseph P. Manausa, manager. MARIANA RETIREMENT FUND: Unidentified Creditors Seek Dismissal -------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that creditors identifying themselves as Jane Roe and John Doe filed a motion asking the bankruptcy judge to dismiss the Chapter 11 case of the Northern Mariana Islands Retirement Fund. According to the report, the creditors say the fund isn't eligible for bankruptcy because it isn't a "person" as defined in the Bankruptcy Code. Instead, it's an agency of the Commonwealth of the Northern Mariana Islands. As an arm of the government, it can't be in bankruptcy, the creditors contend. The report relates that the first hearing was held April 20, with U.S. Bankruptcy Judge Robert L. Faris from Honolulu presiding. Judge Faris was assigned when the U.S. district judge in Saipan removed herself from the case because her husband could be a beneficiary of the fund. The fund had filed a motion for permission to continue paying benefits for 60 days. Judge Faris deferred consideration of the motion because "other arrangements have been made to continue payments for 60 days," court records show. About Northern Mariana Northern Mariana Islands Retirement Fund -- http://www.nmiretirement.com/-- is a public corporation of the Commonwealth of the Northern Mariana Islands that receives and invests retirement contributions and pays certain benefits to or on account of certain retirees of the Commonwealth government, their survivors, and certain disabled persons. The Fund, through its administrator Richard Villagomez, filed a Chapter 11 bankruptcy petition in the U.S. District Court for the Northern District of Mariana Islands in Saipan (Case No. 12-00003) on April 17, 2012. The Fund is represented by Brown Rudnick LLP and the Law Office of Braddock J. Huesman, LLC. The Fund said in court papers that the Chapter 11 filing was precipitated by the discrepancy between the Debtor's current ability to pay benefits to beneficiaries and the Debtor's current obligations to those same beneficiaries. The Fund said it would exhaust its cash by July 2014. It has been unable to collect a $325 million judgment against the islands' government, and the commonwealth decided to reduce contributions toward workers' pensions. MC2 CAPITAL: Court Permits Panel to Hire Olson as General Counsel ----------------------------------------------------------------- MC2 Capital Partners LLC's Official Committee of Unsecured Creditors sought and obtained approval to retain the Law Office of Steven M. Olson as its general counsel. Steven M. Olson, Esq., attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. MC2 Capital Partners, LLC, based in San Rafael, California, filed for Chapter 11 bankruptcy (Bankr. N.D. Calif. Case No. 11-14366) on Dec. 1, 2011. Judge Alan Jaroslovsky presides over the case. In its petition, the Debtor estimated $10 million to $50 million in assets and $50 million to $100 million in debts. The Debtor's Manager is Monahan Pacific Corporation. Thomas Monahan -- an officer and director of Monahan Pacific Corporation and the holder of 95% of the LLC equity interests in the Debtor -- signed the petition. He has been appointed as responsible individual for the Debtor. MEDIA GENERAL: Incurs $34.4 Million Net Loss in First Quarter ------------------------------------------------------------- Media General, Inc., reported a net loss of $34.42 million on $149.51 million of total revenues for the 13 weeks ending March 25, 2012, compared with a net loss of $25.80 million on $148.94 million of total revenues for the 13 weeks ended March 27, 2011. The Company's balance sheet at March 25, 2012, showed $1.04 billion in total assets, $1.04 billion in total liabilities and $17,000 in stockholders' equity. "The operating improvement is primarily the result of increased profits at our Broadcast television stations, as they generated 12 percent revenue growth from increased Political revenues and higher retransmission fees. Broadcast platform cash flow margin increased from 25 percent last year to 32 percent this year. Print cash flow increased nearly 30 percent, as our newspapers offset revenue decreases with expense reductions and we realized a significant benefit from the reengineering we implemented at The Tampa Tribune in late 2011. Total company operating costs, excluding impairment, decreased 4.5 percent, as a result of our continued aggressive cost management," said Marshall N. Morton, president and chief executive officer. "All of our geographic markets generated profit improvements over last year." A copy of the press release is available for free at: http://is.gd/CsOxRN About Media General Richmond, Virginia-based Media General Inc. (NYSE: MEG) -- http://www.mediageneral.com/-- is an independent communications company with interests in newspapers, television stations and interactive media in the United States. The Company operates in three business segments: Publishing, Broadcast and Interactive Media. The Company owns 25 daily newspapers and more than 150 other publications, as well as 23 television stations. The Company also operates more than 75 online enterprises. In March 2008, the Company completed the purchase of DealTaker.com, an online social shopping portal. The Company reported a net loss of $74.32 million for the fiscal year ended Dec. 25, 2011, a net loss of $22.64 million for the fiscal year ended Dec. 26, 2010, and a net loss of $35.76 million for the fiscal year ended Dec. 27, 2009. * * * As reported by the TCR on April 12, 2012, Moody's Investors Service downgraded, among other things, Media General, Inc.'s Corporate Family Rating (CFR) and Probability of Default Rating (PDR) to Caa1 from B3, concluding the review for downgrade initiated on Feb. 13, 2012. The downgrade reflects the significant increase in interest expense associated with the company's credit facility amend and extend transaction and an assumed issuance of at least $225 million of new notes, which will result in limited free cash flow generation and constrain Media General's capacity to reduce its very high leverage. The weak free cash flow and high leverage create vulnerability to changes in the company's highly cyclical revenue and EBITDA generation. MIT HOLDING: Swings to $1.3 Million Net Loss in 2011 ---------------------------------------------------- MIT Holding, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $1.32 million on $5.93 million of sales and services rendered in 2011, compared with net income of $78,832 on $7.08 million of sales and services rendered in 2010. The Company's balance sheet at Dec. 31, 2011, showed $1.43 million in total assets, $3.84 million in total liabilities and a $2.41 million total stockholders' deficiency. The Company said in the Form 10-K that its inability to achieve sufficient increases on its revenues has created a liquidity challenge that raises doubt about the Company's ability to continue as a going concern. A copy of the Form 10-K is available for free at: http://is.gd/RFpjR7 About MIT Holding Savannah, Ga.-based MIT Holding, Inc. (OTC BB: MITD) -- http://www.mitholdinginc.com/-- distributes wholesale pharmaceuticals, administers intravenous infusions, operates an ambulatory center where therapies are administered and sells and rents home medical equipment. MOUNTAIN NATIONAL: Names J. Friddell as CEO, M. Brown as Pres. -------------------------------------------------------------- In connection with Dwight B. Grizzell's retirement as President and Chief Executive Officer of Mountain National Bancshares, Inc., on April 19, 2012, James S. Friddell was appointed as Chief Executive Officer of the Company and as a member of the Board of Directors of the Company to be effective April 19, 2012. Under Tennessee law, Mr. Friddell's term as a director of the Company will expire at the Company's next Annual Meeting of Shareholders expected to be held in July 2012, and the Company expects the Board will nominate Mr. Friddell for election to the Board at the Annual Meeting in the class of directors with a term to expire at the Company's Annual Meeting of Shareholders to be held in 2015. Mr. Friddell, age 62, has over 30 years of banking experience as well as regulatory experience gleaned from being a former employee of the Federal Deposit Insurance Corporation. Mr. Friddell has been Executive Vice President and Chief Credit Officer of Mountain National Bank, a wholly-owned subsidiary of the Company, since April 2009 and prior to that time served as a Senior Lending Officer with Mountain Commerce Bank since 2006. The Board believes that Mr. Friddell's extensive banking experience and the experience he will have managing the day to day operations of the Company's business as the Company's Chief Executive Officer will provide the Board with knowledge and insight into the Company's operations and will make him a valuable member of the Board. On April 19, 2012, Michael L. Brown was appointed as President of the Company and as a member of the Board of Directors of the Company to be effective April 19, 2012. Under Tennessee law, Mr. Brown's term as a director of the Company will expire at the Annual Meeting, and the Company expects the Board will nominate Mr. Brown for election to the Board at the Annual Meeting in the class of directors with a term to expire at the Company's Annual Meeting of Shareholders to be held in 2015. Mr. Brown, age 52, has served as Executive Vice President -- Chief Operating Officer of the Company and the Bank since the Company's inception in 2002 and with the Bank since 1998. Prior to joining the Bank, Mr. Brown served as a Senior Vice President of First National Bank of Gatlinburg from 1995 to 1997, which later was acquired by BankFirst where he continued to serve in that capacity until joining the Bank in 1998. Mr. Brown has a combined banking career spanning 30 years, beginning with First Federal Savings Bank in Maryville, Tennessee in 1981. The Board believes that Mr. Brown's extensive banking experience and the experience he will have managing the day to day operations of the Company's business as the Company's President will provide the Board with knowledge and insight into the Company's operations and will make him a valuable member of the Board. Bank Critically Undercapitalized On April 13, 2012, the Bank was notified by the Office of the Comptroller of the Currency that, as of April 11, 2012, the Bank was considered "critically undercapitalized" for purposes of Prompt Corrective Action. The Bank was designated as being "critically undercapitalized as a result of its tangible equity capital ratio falling below 2% as stated in the Bank's amended Report of Condition and Income filed with the federal regulators on April 11, 2012. As a result of it being "critically undercapitalized" for PCA purposes, the Bank remains obligated to submit a capital restoration plan acceptable to the OCC, which plan will be required to be guaranteed by the Company. Furthermore, the Bank is prohibited, without the approval of the OCC, from: (i) entering into any material transaction other than in the usual course of business, including any investment, expansion, acquisition, sale of assets, or other similar action with respect to which the Bank is required to provide notice to the OCC; (ii) extending any credit for any highly leveraged transactions as defined in 12 C.F.R. Section 325.2(i); (iii) amending the Bank's charter or bylaws, except to the extent necessary to carry out any other requirement of law, regulation, or order; (iv) making any material change in accounting methods; (v) engaging in any covered transaction as defined in Section 23A(b) of the Federal Reserve Act (12 U.S.C. Section 371c(b)); (vi) paying excessive compensation or bonuses; and (vii) paying interest on new or renewed liabilities at a rate that would increase the Bank's weighted average cost of funds to a level significantly exceeding the prevailing rates of interest on insured deposits in the Bank's normal market areas. The Bank also remains subject to regulatory restrictions prohibiting the acceptance, renewal or rolling over of brokered deposits. Under the Federal Deposit Insurance Act, depository institutions that are "critically undercapitalized" can be placed into conservatorship or receivership within 90 days of becoming critically undercapitalized, unless they raise sufficient capital, merge with another financial institution or the FDIC determines and documents that "other action" would better achieve the purposes of the PCA capital requirements. The Company and the Bank are diligently continuing to work to evaluate and pursue strategic alternatives. There can be no assurance that the Company or the Bank will be successful in obtaining outside additional capital or merging with or being acquired by another company within any regulatory imposed time frame. The Bank remains a member of the FDIC, and deposits at the Bank remain insured by the FDIC up to the legal maximum insurance limit -- currently $250,000 per depositor, per deposit category. The Bank's customer service staff can help depositors with any questions about the mechanics of FDIC deposit insurance. About Mountain National Mountain National is a bank holding company registered with the Board of Governors of the Federal Reserve System under the Bank Holding Company Act of 1956, as amended. The Company provides a full range of banking services through its banking subsidiary, Mountain National Bank. The Company conducts its banking activities from its main office located in Sevierville, Tennessee and through eight additional branch offices in Sevier County, Tennessee, as well as a regional headquarters and two branch offices in Blount County, Tennessee. The Company's balance sheet at June 30, 2011, showed $521.40 million in total assets, $509.90 million in total liabilities, and stockholders equity of $11.50 million. The Company and its principal subsidiary, Mountain National Bank, are subject to various regulatory capital requirements administered by the federal banking agencies. In February 2010, the Bank agreed to an Office of the Comptroller of the Currency ("OCC") minimum capital requirement ("IMCR") to maintain a minimum Tier 1 capital to average assets ratio of 9% and a minimum total capital to risk-weighted assets ratio of 13%. The Bank had 4.61% of Tier 1 capital to average assets and 7.69% of total risk-based capital to risk-weighted assets ratio at June 30, 2011, and was therefore not in compliance with the IMCR. As a result, the OCC may bring additional enforcement actions, including a consent order or a capital directive, against the Bank. Based upon its capital levels at June 30, 2011, the Bank's capital shortfall was approximately $23,374,000 for the Tier 1 capital to average assets requirement and approximately $20,342,000 for the total capital to risk-weighted assets requirement. MMRGLOBAL INC: Has $15 Million Investment Agreement with Granite ---------------------------------------------------------------- MMRGlobal, Inc., has entered into a Continuous Investment Agreement for up to $15,000,000 with Granite State Capital, LLC. The Granite Agreement will replace the Company's existing financing agreement with Dutchess Opportunity Fund, II, L.P., at a 5% discount to market as compared to 6% under the Dutchess agreement.? MMR will use funds available under the terms of the Agreement as needed for general corporate purposes, sales and marketing expenses in support of the continued expansion of its global healthcare technology solutions for the healthcare industry. MMR may not receive proceeds from the Agreement until a registration statement has been declared effective by the Securities and Exchange Commission. In addition, the Agreement requires MMR to file the Registration Statement with the SEC by May 7, 2012, although MMR is working diligently to file the Registration statement as soon as possible. The Company plans to file a Current Report on Form 8-K with the SEC disclosing the material terms of the Agreement and attaching a copy the Agreement no later than April 20, 2012. A copy of the Agreement is available for free at: http://is.gd/XcKmkA About MMRGlobal Los Angeles, Calif.-based MMR Global, Inc. (OTC BB: MMRF) -- http://www.mmrglobal.com/-- through its wholly-owned operating subsidiary, MyMedicalRecords, Inc., provides secure and easy-to- use online Personal Health Records (PHRs) and electronic safe deposit box storage solutions, serving consumers, healthcare professionals, employers, insurance companies, financial institutions, and professional organizations and affinity groups. The Company reported a net loss of $8.88 million in 2011, compared with a net loss of $17.90 million in 2010. The Company reported a net loss of $10.3 million in 2009. The Company's balance sheet at Dec. 31, 2011, showed $2.22 million in total assets, $7.51 million in total liabilities, and a $5.28 million total stockholders' deficit. For 2011, Rose, Snyder & Jacobs LLP, in Encino, California, expressed substantial doubt about the Company's ability to continue as a going concern. The auditor issued going concern qualification in the 2010 and 2011 financial statements. The independent auditors noted that the Company has incurred significant operating losses and negative cash flows from operations during the years ended Dec. 31, 2011, and 2010. NAVARRE INDUSTRIES: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Navarre Industries Inc. 10384 Navarre Road SW Navarre, OH 44662 Bankruptcy Case No.: 12-61113 Chapter 11 Petition Date: April 18, 2012 Court: U.S. Bankruptcy Court Northern District of Ohio (Canton) Judge: Russ Kendig About the Debtor: According to http://www.navarreindustries.com/, the Debtor is a manufacturer of aluminum extrusions for the petroleum, lighting, medical and sign industries. Debtor's Counsel: Anthony J. DeGirolamo, Esq. 116 Cleveland Avenue, N.W., Suite 307 Canton, OH 44702 Tel: (330) 588-9700 Fax: (330) 588-9713 E-mail: ajdlaw@sbcglobal.net Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/ohnb12-61113.pdf The petition was signed by Paul E. Miller, president. NEWPAGE CORP: Noteholders Object to Panel's Claims Validity Probe ----------------------------------------------------------------- BankruptcyData.com reports that Ad hoc first lien noteholders, who separately hold some of the 11.375% Senior Secured Notes due 2014 issued by NewPage, filed with the U.S. Bankruptcy Court an objection to the official committee of unsecured creditors' motion for an order extending period to (A) challenge validity, enforceability, perfection, and extent of first lien notes, obligations, and liens and (B) assert claims and causes of action against first lien notes parties and granting related relief. The noteholders assert, "The Committee's investigation has continued for seven months, consumed millions of dollars in legal fees incurred by more than fifteen law firms, and caused the more than a dozen subjects of its investigation to produce over 1,000,000 pages of documents. Enough is enough. The time has come for the Committee to either acknowledge that it has no legally cognizable claims to pursue, or seek standing from this Court to commence an adversary proceeding with respect to whatever claims it thinks it might have." 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. NORTEL NETWORKS: Judge Taps Mediator for Retiree Welfare Dispute ---------------------------------------------------------------- Lance Duroni at Bankruptcy Law360 reports that U.S. Bankruptcy Judge Kevin Gross on April 18 appointed a mediator to break the standoff over Nortel Networks Inc.'s bid to terminate benefits for its retirees and disabled employees, one of the few issues holding up the defunct telecom's $9 billion liquidation. At a court hearing in Wilmington, Del., Judge Gross appointed Cravath Swaine & Moore LLP's Richard Levin as the mediator, a choice agreed to by Nortel and the two committees representing 3300 retirees and 240 disabled employees receiving benefits, according to Law360. About Nortel Networks Nortel Networks (OTC BB: NRTLQ) -- http://www.nortel.com/-- was once North America's largest communications equipment provider. It has sold most of the businesses while in bankruptcy. Nortel Networks Corp., Nortel Networks Inc., and other affiliated corporations in Canada sought insolvency protection under the Companies' Creditors Arrangement Act in the Ontario Superior Court of Justice (Commercial List). Ernst & Young was appointed to serve as monitor and foreign representative of the Canadian Nortel Group. The Monitor sought recognition of the CCAA Proceedings in the U.S. by filing a bankruptcy petition under Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 09-10164). Mary Caloway,Esq., and Peter James Duhig, Esq., at Buchanan Ingersoll & Rooney PC, in Wilmington, Delaware, serves as the Chapter 15 petitioner's counsel. Nortel Networks Inc. and 14 affiliates filed separate Chapter 11 petitions (Bankr. D. Del. Case No. 09-10138) on Jan. 14, 2009. Judge Kevin Gross presides over the case. James L. Bromley, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as general bankruptcy counsel; Derek C. Abbott, Esq., at Morris Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware counsel. The Chapter 11 Debtors' other professionals are Lazard Freres & Co. LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims and notice agent. The Office of the United States Trustee for the District of Delaware has appointed an Official Committee of Unsecured Creditors in respect of the Debtors, and an ad hoc group of bondholders has been organized. Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, and Christopher M. Samis, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, represent the Official Committee of Unsecured Creditors. The Official Committee of Retired Employees and the Official Committee of Long-Term Disability Participants tapped Alvarez & Marsal Healthcare Industry Group as financial advisor. The Retiree Committee is represented by McCarter & English LLP as Delaware counsel, and Togut Segal & Segal serves as the Retiree Committee. The Committee retained Alvarez & Marsal Healthcare Industry Group as financial advisor, and Kurtzman Carson Consultants LLC as its communications agent. Certain of Nortel's European subsidiaries also made consequential filings for creditor protection. On May 28, 2009, at the request of the Administrators, the Commercial Court of Versailles, France ordered the commencement of secondary proceedings in respect of Nortel Networks S.A. On June 8, 2009, Nortel Networks UK Limited filed petitions in this Court for recognition of the English Proceedings as foreign main proceedings under chapter 15 of the Bankruptcy Code. Nortel has collected almost $9 billion for distribution to creditors. Of the total, US$4.5 billion came from the sale of Nortel's patent portfolio to Rockstar Bidco, a consortium consisting of Apple Inc., EMC Corporation, Telefonaktiebolaget LM Ericsson, Microsoft Corp., Research In Motion Limited, and Sony Corporation. The consortium defeated a $900 million stalking horse bid by Google Inc. at an auction. The deal closed in July 2011. Nortel Networks has filed a proposed plan of liquidation in the U.S. Bankruptcy Court. The Plan generally provides for full payment on secured claims with other distributions going in accordance with the priorities in bankruptcy law. NORTHCORE TECHNOLOGIES: Inks New Agreement with Trinity ------------------------------------------------------- Northcore Technologies Inc. signed a new customer contract through its wholly owned subsidiary, Envision Online Media Inc. As previously announced, Northcore has acquired Envision, an Ottawa based software development company and Microsoft Partner. The customer, Trinity Development Group Inc., has played a prominent role in the development of new format shopping centres across Canada. Since 1992, when it was established, Trinity has developed over 22 million square feet of retail space. The Envision Online team will deliver a comprehensive content management system allowing Trinity to better interact with its stakeholders. "I had let our shareholders know that we anticipated big things from Todd Jamieson and his team at Envision," said Amit Monga, CEO of Northcore Technologies. "This latest signing demonstrates the type of momentum that we expect to persist. We will continue to expand our collective footprint and are pleased to welcome Trinity to our growing list of clients." About Northcore Toronto, Ontario-based Northcore Technologies Inc. (TSX: NTI; OTC BB: NTLNF) -- http://www.northcore.com/-- provides a Working Capital Engine(TM) that helps organizations source, manage, appraise and sell their capital equipment. Northcore offers its software solutions and support services to a growing number of customers in a variety of sectors including financial services, manufacturing, oil and gas and government. Northcore owns 50% of GE Asset Manager, LLC, a joint business venture with GE. Together, the companies work with leading organizations around the world to help them liberate more capital value from their assets. The Company reported a loss and comprehensive loss of C$3.93 million in 2011, compared with a loss and comprehensive loss of C$3.03 million in 2010. The Company's balance sheet at Dec. 31, 2011, showed C$2.91 million in total assets, C$415,000 in total liabilities and C$2.49 million in total shareholders' equity. O&G LEASING: Expands Scope of YoungWilliams Employment ------------------------------------------------------ The Hon. Edward Ellington of the U.S. Bankruptcy Court for the Southern District of Mississippi has authorized O&G Leasing, LLC, and its affiliates to expand the scope of employment of YoungWilliams, P.A. Specifically, YoungWilliams will be approved as special counsel to provide representation to the Debtors in pending litigation and on other matters as may be requested by the Debtors. As reported in the Troubled Company Reporter on April 19, 2011, the Hon. Edward Ellington of the U.S. Bankruptcy Court for the Southern District of Mississippi granted Debtors O&G Leasing LLC and Performance Drilling Company LLC authority to employ YoungWilliams as general and corporate counsel. Robert L. Holladay, Jr., Esq., a shareholder at the firm, attests that his firm does not represent or hold any interest adverse to the Debtors or in connection with the cases and does not have connections with the Debtors, creditors, any other party in interest, its attorneys and accountants, the United States Trustee, or any person employed in the office of the United States Trustee which would prevent employment of YoungWilliams by the Debtor. The YoungWilliams attorneys expected to provide the primary representation to the Debtors are E. Stephen Williams, who has been retained by the Debtors at the hourly rate of $240 per hour, and Robert L. Holladay, Jr., who has been retained by the Debtor at the hourly rate of $175 per hour. YoungWilliams has served as attorneys for the Debtors and certain of the Debtors' affiliated companies relating to the business segment (petroleum drilling) since 2006. The firm currently represents Performance Drilling Company, LLC in the prosecution of its claims against Odyssey Petroleum Corp. (US), Case No. 10-01482-NPO, before the Bankruptcy Court. The compensation paid to YoungWilliams by the Debtors within one year before the petition date for services and reimbursement of expenses -- including prepayment of filing fees -- aggregated roughly $183,992. The firm also has received from the Debtors a $6,891 retainer, which is being held in the firm's trust account. About O&G Leasing Jackson, Mississippi-based O&G Leasing, LLC, was formed in 2006 to acquire and construct land drilling rigs that it would lease to its wholly owned subsidiary, Performance Drilling Company, LLC. Performance was formed to provide contract drilling services for ArkLaTex (Arkansas, Louisiana and Eastern Texas) region, as well as Alabama, Florida, Mississippi and Oklahoma. The Company filed for Chapter 11 bankruptcy protection (Bankr. S.D. Miss. Case No. 10-01851) on May 21, 2010. Douglas C. Noble, Esq., at McCraney Montagnet & Quin, PLLC, assists the Company in its restructuring effort. The Company estimated $10 million to $50 million in assets and $50 million to $100 million in liabilities. On the same day, Performance Drilling Company, LLC, filed for Chapter 11 bankruptcy protection. Performance Drilling estimated assets and debts of between $1 million to $10 million each. The Debtors' cases have been jointly administered. OILSANDS QUEST: Christopher Hopkins Resigns From Board ------------------------------------------------------ Oilsands Quest Inc. disclosed that Christopher Hopkins has elected to resign from the Oilsands Quest Board of Directors for personal reasons. "As the founder of Oilsands Quest and our chief executive officer for several years, Mr. Hopkins had an indelible impact on the Company," said Ron Blakely, Chairman of the Oilsands Quest Board of Directors. "He remains a major shareholder who is keenly interested in the future of Oilsands Quest. We thank him for his years of service and wish him well." 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. Under the Initial Order, Ernst & Young, Inc., was appointed by the Court to monitor the business and affairs of the Oilsands Entities. Neither of Oilsands' other subsidiaries, 1259882 Alberta, Ltd., and Western Petrochemical Corp., have filed for creditor protection. Oilsands Quest obtained a May 18, 2012 extension of the order providing creditor protection under the Companies' Creditors Arrangement Act (Canada). PETROEXPORT LTD: Judge Won't Dismiss $35-Mil. Suits --------------------------------------------------- Eric Hornbeck at Bankruptcy Law360 reports that Judge Barabara R. Kapnick refused Wednesday to dismiss a pair of lawsuits over allegations that hedge fund Platinum Partners Value Arbitrage Fund bankrupted Petroexport Ltd. when it pulled out of a $35 million crude oil refining agreement, saying too many factual issues were still in play. On June 11, 2010, the Grand Court of the Cayman Islands entered an order that voluntarily winds up the operations of Petroexport Limited. The company's liquidator is: Roy Bailey c/o Lynden John Ernst & Young Ltd 62 Forum Lane, Camana Bay P.O. Box 510, Grand Cayman KY1-1106 Cayman Islands Telephone: (345) 814 8915 Facsimile: (345) 949 8529 E-mail: Lynden.John@ky.ey.com PHARMOS CORPORATION: Reports $576,300 Net Loss in Q1 2012 --------------------------------------------------------- Pharmos Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $576,305 for the three months ended March 31, 2012, compared with a net loss of $603,127 for the same period of 2011. Pharmos generated zero revenue for both periods. The Company's balance sheet at March 31, 2012, showed $1.15 million in total assets, $1.34 million in total liabilities, and a stockholders' deficit of $188,799. Friedman LLP, in ast Hanover, New Jersey, expressed substantial doubt about Pharmos' ability to continue as a going concern, following the Company's results for 2011. The independent auditors noted that the Company has suffered recurring losses from operations, has significant 2012 cash flow commitments in connection with its current proof-of-concept clinical trial, and its ability to continue as a going concern is ultimately dependent on achieving a collaboration agreement or raising additional capital in 2012. A copy of the Form 10-Q is available for free at: http://is.gd/QM61zV Iselin, N.J.-based Pharmos Corporation is a biopharmaceutical company that discovers and develops novel therapeutics to treat a range of metabolic and nervous system disorders, including gout, disorders of the brain-gut axis (e.g., Irritable Bowel Syndrome), pain/inflammation, and autoimmune disorders. PJ FINANCE: Confirmation Hearing on Joint Plan Adjourned to May 8 ----------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware has adjourned the Confirmation Hearing to May 8, 2012, at 1:00 p.m., to consider the First Amended Joint Plan of Reorganization filed by PJ Finance Company, LLC, and the Committee of Unsecured Creditors. As reported in the Troubled Company Reporter on Sept. 22, 2011, the plan was co-proposed by the Debtor and the committee. The Debtor, which owns 9,500 apartment units in 32 projects, has been jousting since the case began with secured lender Torchlight Loan Services LLC. The Plan provides for these terms: * The plan is to be financed with a fresh $10 million investment by the owners. * Torchlight has two alternatives: (A) Torchlight can elect to keep the full amount of a $370 million secured claim on the properties. The new debt would start off paying 3.5% interest and mature in 2019. In that event, unsecured creditors would split up $5 million cash to cover $10 million in claims. (B) Torchlight can elect to have a new secured debt equal to whatever value the judge assigns to the collateral. The new secured debt would start off paying 3% interest and mature in 2022. In that case, unsecured creditors would receive $4 million cash, and Torchlight would receive a new unsecured note for 40% of its estimated $165 million deficiency claim. The 40% is to represent the same distribution received by unsecured creditors. About PJ Finance Chicago, Illinois-based PJ Finance Company, LLC, owns apartment communities in the states of Arizona, Florida, Georgia, Tennessee and Texas. PJ Finance owns or holds ownership interests in 32 apartment communities that collectively have more than 9,500 rentable units. It has 20 apartment locations in Texas, and the remaining 12 in Arizona, Florida, Georgia and Tennessee. The day- to-day operations of the portfolio are managed by a third party, WestCorp Management Group One, Inc. PJ Finance and various affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-10688) on March 7, 2011. Matthew L. Hinker, Esq., at Greenberg Traurig, LLP, in Wilmington, Delaware; and Michelle E. Marino, Esq., and Stuart M. Brown, Esq., at DLA Piper LLP (US), in Wilmington, Delaware, serve as bankruptcy counsel. Ernst & Young LLP serves as the Debtors' independent auditors. Kurtzman Carson Consultants, LLC, is the Debtors' claims and notice agent. An official committee of unsecured creditors has been named in the case. Christopher A. Jarvinen, Esq., Janine M. Cerbone, Esq., Joseph Orbach, Esq., and Mark T. Power, Esq., at Hahn & Hessen LLP, in New York, N.Y. represent the committee as lead counsel. Kimberly A. Brown, Esq., Matthew B. McGuire, Esq., and Richard Scott Cobb, Esq., at Landis Rath & Cobb, in Wilmington, Del., serve as the Committee's local counsel. The Debtors estimated total assets of at least $275 million (estimated value of portfolio securing loan to Bank of America) and total debts of at least $479 million ($475 million owed to BofA, $4.4 million trade debt). PLATINUM STUDIOS: Adam Post Resigns from Board of Directors ----------------------------------------------------------- The Board of Directors of Platinum Studios, Inc., accepted the resignation of Adam Post from his position on the Company's Board of Directors. The resignation of Mr. Post was not the result of any disagreements, of any kind, with the Company. About Platinum Studios Los Angeles, Calif.-based Platinum Studios, Inc., controls a library consisting of more than 5,000 characters and is engaged principally as a comics-based entertainment company adapting characters and storylines for production in film, television, publishing and all other media. The Company reported a net loss of $9.94 million on $2.27 million of revenue for the year ended Dec. 31, 2010, compared with a net loss of $3.38 million on $292,940 of revenue during the prior year. The Company also reported a net loss of $13.83 million on $10.47 million of net revenue for the nine months ended Sept. 30, 2011, compared with a net loss of $1.70 million on $2.24 million of net revenue for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $1.75 million in total assets, $29.70 million in total liabilities, all current, and a $27.94 million total shareholders' deficit. The Company is also delinquent in payment of $116,308 for payroll taxes as of Sept. 30, 2011, and in default of certain of its short term notes payable including it $4,916,665 note payable to Standard Chartered Bank. These matters raise substantial doubt about the Company's ability to continue as a going concern. As reported by the TCR on April 21, 2011, HJ Associates & Consultants, LLP, in Salt Lake City, Utah, expressed substantial doubt about the Company's ability to continue as a going concern, following the 2010 financial results. The independent auditors noted that the Company has suffered recurring losses from operations which have resulted in an accumulated deficit. PRECISION OPTICS: Receives $1 Million Order for Endoscopes ---------------------------------------------------------- Precision Optics Corporation, Inc., accepted an order from a customer to purchase endoscopes for a total purchase amount of $1,032,000. The purchase order is contingent upon execution of a supply agreement to specify, among other items, the delivery schedule of the products, and demonstration that the endoscopes meet the customer's requirements. The Company is responsible for all testing and validation of the products. About Precision Optics Headquartered in Gardner, Massachusetts, Precision Optics Corporation, Inc., has been a developer and manufacturer of advanced optical instruments since 1982. The Company designs and produces high-quality micro-optics, medical instruments and other advanced optical systems. The Company's medical instrumentation line includes laparoscopes, arthroscopes and endocouplers and a world-class product line of 3-D endoscopes for use in minimally invasive surgical procedures. The Company reported a net loss of $1.05 million for the fiscal year ended June 30, 2011, compared with a net loss of $660,882 in the preceding year. Precision Optics' balance sheet at Dec. 31, 2011, showed $1.67 million in total assets, $501,023 in total liabilities, all current, and $1.17 million in total stockholders' equity. As reported in the TCR on Sept. 27, 2010, Stowe & Degon LLC, in Westborough, Mass., expressed substantial doubt about Precision Optics' ability to continue as a going concern, following the Company's results for the fiscal year ended June 30, 2010. The independent auditors noted that the Company has suffered recurring net losses and negative cash flows from operations. PROSPECT MEDICAL: Moody's Upgrades CFR to 'B2'; Outlook Stable -------------------------------------------------------------- Moody's Investors Service upgraded the Corporate Family and Probability of Default Ratings of Prospect Medical Holdings, Inc. to B2 from B3. Moody's also assigned a B2 (LGD 4, 52%) rating to the company's proposed offering of $325 million of senior secured notes due 2019. Moody's understands that the proceeds of the note offering will be used to redeem the company's 12.75% senior secured notes due 2014 and the company's outstanding preferred stock. Moody's will withdraw the ratings on the 12.75% notes following the closing of the transaction. The outlook for the ratings is stable. "The upgrade of Prospect's rating reflects the simplification of the company's capital structure and strengthened liquidity profile as near term maturities at an operating subsidiary are addressed," said Dean Diaz, a Moody's Senior Credit Officer. "However, Prospect's increase in debt to fund the redemption of preferred equity limits the benefits of eliminating higher cost debt," continued Diaz. Following is a summary of Moody's rating actions. Ratings assigned: $325 million senior secured notes due 2019, B2 (LGD 4, 52%) Ratings upgraded: 12.75% senior secured notes due 2014, to B2 (LGD 3, 44%) from B3 (LGD 3, 44%) (to be withdrawn at close of the transaction) Corporate Family Rating, to B2 from B3 Probability of Default Rating, to B2 from B3 Ratings Rationale Prospect's B2 Corporate Family Rating reflects Moody's expectation that the company will actively pursue acquisitions to add scale and diversification. However, Moody's still expects the company to have a relatively small revenue base when compared to other rated for-profit hospital operators. Additionally, Prospect's operations will continue to be dominated by its concentration in Southern California and its reliance on the California Medicaid program as a source of revenue. However, the ratings also reflect Moody's expectation that the company will continue to see improvement in operating results at its existing facilities. Additionally, while the company could use debt to fund acquisitions, leverage should remain relatively modest at under 4.0 times. The stable rating outlook reflects Moody's expectation that the company can continue to improve the operations of its hospitals and medical groups and grow revenue and EBITDA. The outlook also incorporates Moody's expectation that the company will maintain a disciplined approach to increasing its debt load as it extends its reach from the Southern California marketplace through acquisitions. A meaningful increase in leverage, either from a debt financed acquisition or shareholder initiatives that was expected to result in sustained leverage above 5.0 times could result in a downgrade of the ratings. Additionally, if liquidity was to weaken or cash flow was expected to be negative for a sustained period, Moody's could downgrade the ratings. Given the continued significant concentration risk, this could result from an adverse development in the local market that is expected to materially impact volumes or pricing. In order to upgrade the rating, Moody's would have to see evidence that the company can grow its revenue base and diversify away from its reliance on the Southern California market and dependence on the California Medicaid program while maintaining conservative leverage metrics. Given the smaller scale and concentration, Moody's would expect to see financial metrics that would allow the company to absorb negative events at the higher rating level prior to an upgrade. The principal methodology used in rating Prospect was the Global Healthcare Service Providers Industry Methodology published in December 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Prospect owns and operates five hospitals in the greater Los Angeles area as well as two in San Antonio, Texas, and manages the provision of healthcare services for HMO enrollees in Southern California through its network of specialist and primary care physicians. Prospect recognized revenue of approximately $580 million in the twelve months ended December 31, 2011. REDDY ICE: Reaches $1-Mil. Deal in Shareholders' Cartel Suit ------------------------------------------------------------ Amanda Bransford at Bankruptcy Law360 reports that Reddy Ice Holdings Inc. has reached a tentative $1 million settlement in Michigan federal court with shareholders who claim the company's attempt to control the packaged ice market artificially inflated stock prices and led to a criminal probe. Reddy Ice said the shareholders had agreed to settle after the company's counsel told them the company was filing for Chapter 11, and would seek an order disallowing the class action they brought when their stock plummeted, according to Law360. About Reddy Ice Reddy Ice Holdings Inc. and wholly owned subsidiary Reddy Ice Corp. manufacture and distribute packaged ice in the United States. As of Dec. 31, 2011, the Company had assets totaling $434 million and total liabilities of $531 million. The bulk of the liabilities were total debt outstanding of $471.5 million. Reddy Holdings and Reddy Corp. on April 12, 2012, filed voluntary Chapter 11 bankruptcy petitions (Bankr. N.D. Tex. Case Nos. 12- 32349 and 12-32350) together with a plan of reorganization and accompanying disclosure statement to complete a previously announced plan to strengthen its balance sheet and ensure strong financial footing for the future. As part of the restructuring, Reddy Ice seeks to pursue a strategic acquisition of all or substantially all of the businesses and assets of Arctic Glacier Income Fund and its subsidiaries, including Arctic Glacier Inc., a major producer, marketer and distributor of packaged ice in North America. Arctic Glacier on Feb. 22, 2012, filed for protection under the Companies' Creditors Arrangement Act in Canada and Chapter 15 of the Bankruptcy Code in the United States. Arctic is seeking sale or investment proposals from qualified bidders. Reddy Ice's Plan provides for the restructuring of the Company's obligations with respect to $300 million of First Lien Notes; $139.4 million of Second Lien Notes; and $11.7 million of Discount Notes. If the Plan is approved, all Second Lien Notes will be exchanged and will be retired and cancelled and all Discount Notes will be cancelled. Reddy Ice said the Plan has the support of a majority of its lenders and major creditors, led by Centerbridge Capital Partners II, L.P. Entities entitled to vote on the Plan have until May 9, 2012, to cast their ballot. The Debtors have asked the Court to hold a combined hearing to approve the Disclosure Statement and confirm the Plan no later than May 18, 2012. Judge Stacey G. Jernigan presides over the case. Reddy Ice's legal advisor on the restructuring is DLA Piper LLP (US) and its financial advisors are Jefferies & Company, Inc. and FTI Consulting, Inc. Kurtzman Carson Consultants serves as claims and notice agent. Centerbridge Partners is represented by Jonathan S. Zinman, Esq., Joshua A. Sussberg, Esq., James H.M. Sprayregen, Esq., and Anup Sathy, Esq., at Kirkland & Ellis. Macquarie Bank Limited is represented by Sarah Hiltz Seewer, Esq., and David R. Seligman, Esq., also at Kirkland & Ellis. The ad hoc group of First Lien and Second Lien Noteholders is represented by Joshua Andrew Feltman, Esq., at Wachtell Lipton Rosen & Katz. Wells Fargo Bank, National Association, serves as First Lien and Second Lien Agent. REGENCY CENTERS: Fitch Affirms Preferred Stock Rating at 'BB+' -------------------------------------------------------------- Fitch Ratings has affirmed the following credit ratings for Regency Centers Corp. (NYSE: REG) and its operating partnership, Regency Centers, L.P., (collectively, REG): Regency Centers Corporation - Issuer Default rating (IDR) at 'BBB'; - Preferred stock at 'BB+'. Regency Centers, L.P. - IDR at 'BBB'; - Unsecured revolving facility at 'BBB'; - Senior unsecured notes at 'BBB'. In addition, Fitch has assigned a 'BBB' rating to the company's $250 million senior unsecured term loan. The Rating Outlook is Stable. The rating affirmations center on leverage and fixed charge coverage metrics which have stabilized at levels appropriate for the current rating. Absent any major deleveraging initiatives, Fitch expects REG to maintain credit metrics within a range appropriate for the 'BBB' IDR. Pro rata leverage, measured as net debt divided by recurring operating EBITDA was 6.4 times (x) as of Dec. 31, 2011. This ratio is down from 6.7x as of Dec. 31, 2010. In addition, REG's pro-rata fixed-charge coverage ratio (defined as recurring operating EBITDA less straight-line rents, leasing commissions and tenant and building improvements, divided by total interest incurred and preferred stock dividends) was 1.9x for the year ended Dec. 31, 2011, unchanged from 2010. Fitch views REG's property portfolio profile, financial statement credit statistics, debt maturities, and liquidity position based on combining the company's wholly-owned properties and its pro rata share of co-investment partnerships, to analyze the company as if each of the co-investment partnerships was dissolved via distribution in kind. Several of REG's co-investment partnerships provide for unilateral dissolution. Most of these co-investment partnerships provide for a distribution in kind in the event of a dissolution, whereby the company and its limited partner unwind the partnership by distributing the underlying properties (and related property-level debt, if any) to each partner based on each partner's respective ownership percentage in the partnership. Further, REG has actively supported its co-investment partnerships in the past by raising common equity primarily used to repay or refinance its share of secured debt, demonstrating financial support of the partnerships. Fitch views REG's joint venture platform positively as it provides broader market insights, incremental fee and property income, as well as risk-taking opportunities that the company may not want to effect on a wholly-owned basis. REG has also reduced leverage in its joint ventures to levels consistent with leverage on the consolidated portfolio, primarily through follow-on common equity offerings. Same-store property performance showed signs of recovery in 2011. Although REG suffered a negative 10.4% roll-down on all new leases, all renewals were higher by 1.5% resulting in an overall leasing spread of negative 1.7%. Spaces which were vacant for less than 12 months had an overall leasing spread improvement of 1.2%; new leases rolled down 0.5% and renewal leases improved by 1.5% during 2011. Same-store occupancy increased to 93.8% as of Dec. 31, 2011, up 100 basis points from a year earlier, resulting in same-store year-over-year net operating income (NOI) decreasing 0.6% in 2011, but up 0.1% without including termination fees. Fitch expects that same-property NOI will grow in the low single digits in 2012, 2013 and 2014. This modest growth is the result of expected improvements in renewal and new lease rates and occupancy. REG's community and neighborhood shopping center portfolio reflects moderate geographic and anchor tenant concentrations. Sixty-one percent of its annualized base rent is derived from properties located within the states of California, Florida, Texas, and Virginia. The company's lease expiration schedule is manageable, with no year representing more than 12% of expiring pro rata minimum base rent. Although REG's five largest tenants by annual base rents represent in aggregate nearly 16.1% of annual base rents, this tenant concentration is offset by the fact that Fitch rates three of the top five tenants as investment grade. The company's five largest tenants are Publix Super Markets Inc. (4.4%), The Kroger Co. (4.2%; Fitch IDR of 'BBB' with a Stable Outlook), Safeway Inc. (3.7%, IDR of 'BBB-' with a Stable Outlook), Supervalu Inc. (2.2%, IDR of 'B' with a Negative Outlook), and CVS Caremark Corporation (1.6%, IDR of 'BBB+' with a Stable Outlook). While REG has established itself as a developer with a national platform, the company's development activities contain certain inherent risks. However, REG's net cost of properties in development totaled only 4% of its gross undepreciated assets as of Dec. 31, 2011, which is down significantly from 11% and 23% in 2009 and 2010, respectively. This is reflective of an overall de- risking of the company's strategy since the downturn. REG has a manageable debt maturity schedule, with no year accounting for more than 21% of total maturing debt. This laddering enhances the company's liquidity profile. For the period Jan. 1, 2012 to Dec. 31, 2013, REG's sources of liquidity (cash, availability under its unsecured revolving credit facility and projected retained cash flows from operating activities after dividends) exceed uses of liquidity (pro rata debt maturities and amortization and projected capital expenditures and development) by 1.2x. Under a scenario whereby 80% of REG's pro rata secured debt is refinanced with new secured debt, liquidity coverage improves to 1.5x. The company has demonstrated strong access to the common equity, unsecured and secured debt and preferred stock markets, mitigating near-term refinance risk. In addition, the company has good contingent liquidity in the form of a sizeable unencumbered asset pool. Using an 8.0% capitalization rate, the implied value of unencumbered assets covered net unsecured debt by 2.3x, which is adequate for the 'BBB' rating, and the company's unsecured debt covenants do not restrict REG's financial flexibility. The two-notch differential between REG's IDR and its preferred stock rating is consistent with Fitch's criteria for corporate entities with a 'BBB' IDR. Based on Fitch's criteria report, 'Treatment and Notching of Hybrids in Nonfinancial Corporate and REIT Credit Analysis' dated Dec. 15, 2011, available on Fitch's website at 'www.fitchratings.com', the company's cumulative redeemable preferred stock is deeply subordinated and has loss absorption elements that would likely result in poor recoveries in the event of a corporate default. The Stable Outlook is based on mildly strengthening retail fundamentals, Fitch's expectation that leverage and coverage will remain relatively unchanged or improve modestly compared with current levels and that REG will maintain adequate liquidity. The following factors may have a positive impact on REG's ratings and/or Outlook: -- Total pro rata leverage sustaining below 5.5x for several quarters (pro rata leverage was 6.4x as of Dec. 31, 2011); -- Fixed charge coverage sustaining above 2.3x for several quarters (pro rata coverage was 1.9x for the year ended Dec. 31, 2011). The following factors may have a negative impact on REG's ratings and/or Outlook: -- Leverage sustaining above 7.0x for several quarters; -- Fixed charge coverage sustaining below 1.8x for several quarters; -- A liquidity shortfall (REG had a base case liquidity coverage ratio of 1.2x as of Dec. 31, 2011). REGENCY ENERGY: Fitch Rates Series A Preferreds at 'B+' ------------------------------------------------------- Fitch Ratings assigns the following ratings to Regency Energy Partners, LP (RGP): Initial Issuer Default Rating (IDR) 'BB'; Senior unsecured notes 'BB'; Revolving credit facility 'BB+'; Series A Preferreds 'B+'. The rating Outlook is Stable. The ratings reflect the fixed fee nature of RGP's operations, the quality and diversity of its portfolio of midstream assets, relatively high leverage, weak distribution coverage metrics and its affiliation with its general partner Energy Transfer Equity, LP (ETE; Long-Term IDR 'BB-'; Stable Outlook by Fitch). The ratings consider that RGP is in the midst of a significant capital spending program which will see the company spend over $1 billion in growth cap-ex through 2013 and weigh on leverage metrics in the near-to-medium term. These growth investments are primarily focused on fee-based or revenue-assured assets which should help lower RGP's exposure to changes in commodity prices. Additionally, Fitch expects RGP's leverage metrics will improve as it benefits from the earnings and cash flow associated with joint venture and organic projects as they are completed and begin operation. The ratings consider the following: Fixed Fee Cash Flow Profile: RGP has over 80% of its gross margin supported by fixed fee type contracts which largely insulate it from direct changes in commodity prices. This translates to fairly predictable earnings and cash flow for the partnership. Additionally, RGP tries to layer on hedges to further lower open commodity price exposure. Geographic and Business Segment Diversity: RGP has a diverse set of midstream assets which allow it to offer fully integrated midstream services to producers. Its assets are located in and around growing production basins that are liquids rich and should continue to provide significant organic growth opportunities. High Leverage/Improving Metrics: As a result of RGP's rapid growth over the past several years its leverage is high with Debt/Adjusted EBITDA for 2011 of 4.98 times (x) based on Fitch calculations. Somewhat offsetting this high leverage is lower relative commodity price exposure due to the fixed fee focus of its business and the expectation that as its growth projects are completed RGP, rising EBITDA will improve these metrics. Based on Fitch's calculations for Debt/Adjusted EBITDA, which excludes equity in earnings but includes dividends from unconsolidated affiliates, Fitch expects RGP's 2012 Debt/Adj. EBITDA of roughly 4.6 times (x) improving to closer to 4.1x by 2013 as growth projects are completed. Large Capital Spending Plan: RGP has a significant capital expenditure program, with forecasted capital spending of over $1 billion for 2012 and 2013. RGP's large scale spending will weigh on metrics through 2013 prior to construction being completed and cash flows coming on line. Fitch expects RGP to fund its spending with a balance of debt and equity. Tight Distribution Coverage: Fitch expects RGP's distribution coverage to be just under 1.0x for 2012, improving to 1.1x in 2013. Fitch prefers to see distribution coverage in excess 1.0x, as the cash retention can provide a financial cushion in a downturn, and help fund growth spending and or debt reduction. Volumetric Exposure: As typical with gas processor and midstream companies volumetric risk can be a concern, particularly in a declining rig count environment. However, production and volumes have largely held up or increased in RGP's operating basins, which Fitch expects to continue given the gas from these areas, like the Permian and Eagle Ford basins, tends to have a high hydrocarbon composition or is tied to oil production which should remain strong in given current NGL and oil economics. JV/Structural Subordination: RGP is the owner of several joint venture (JV) interests some of which have external debt. RGP is structurally subordinate to the cash operating and debt service need s of these JVs and reliant on JV distributions to fund its capital spending and its own distributions. General Partner Relationship: While Fitch's ratings are largely reflective of RGP's credit profile on a stand-alone basis, they do consider RGP's relationship with ETE the owner of its general partner interest. ETE's general partner interest gives it significant control over the MLP's operations, including most major strategic decisions such as investment plans, distributions, and management of daily operations. The relationship has also provided opportunities that might otherwise be unavailable to RGP, such as RGP's acquisitions of MidContinent Express Pipeline (MEP; IDR: 'BBB'; Stable Outlook) and LDH Energy Assets Holdings, from and with another ETE affiliate, Energy Transfer Partners, LP (ETP; IDR: 'BBB-'; Negative Outlook) and its participation in its LoneStar JV with ETP. Liquidity is adequate and access to capital markets has not been an issue for RGP which successfully completed a $310 million equity offering in March 2012. As of Dec. 31, 2011, RGP had $549 million in availability under its $900 million revolver which matures in 2014. RGP's revolving credit facility contains financial covenants requiring it to maintain debt to consolidated EBITDA ratio less than 5.25x, consolidated EBITDA to consolidated interest expense ratio greater than 2.75x and a secured debt to consolidated EBITDA ratio less than 3x. RGP is in compliance with all of its covenants. Catalysts for Positive Rating Action Include: Sustained improvement in leverage metrics; Successful execution of growth plan and continued metric improvement Fitch would likely consider a positive rating action as Debt/Adj. EBITDA moves closer towards and below 4.0x and distribution coverage remains above 1.0x, provided RGP's 80%+ fee based margin profile and hedging practices stay consistent with current practices. Catalysts for a Negative Rating Action include: Continued large-scale capital expenditure program funded by higher than expected debt borrowings; An increase in gross margin sensitivity to changes in commodity prices; Significant and prolonged decline in demand/prices for NGLs, crude and natural gas; Aggressive growth of distributions at RGP. Fitch assigns the following ratings: Long-Term IDR 'BB' Senior Secured Revolver 'BB+' Senior Unsecured Notes 'BB' Series A Preferred Units 'B+' Note: In its Master Limited Partnership analysis, Fitch typically adjusts EBITDA to exclude nonrecurring extraordinary items, and noncash mark-to-market earnings. Adjusted EBITDA excludes equity in earnings and includes dividends from unconsolidated affiliates. RESIDENTIAL CAPITAL: Non-Payment Cues Fitch to Cut IDR to 'C' ------------------------------------------------------------- Fitch Ratings has downgraded the long-term Issuer Default Rating (IDR) of Residential Capital LLC (ResCap) to 'C' from 'CCC'. In addition, Fitch has placed the 'BB-' long-term IDR and senior unsecured debt rating of Ally Financial Inc. (Ally) and its subsidiaries on Rating Watch Negative. The downgrade of ResCap's IDR follows its decision to not make a scheduled interest payment on $473 million of senior unsecured notes due in 2013. Although ResCap has a 30 day grace period under the note's indenture, Fitch believes that missing the scheduled interest payment has increased the risk of default. In addition to the missed interest payment, ResCap continues to face upcoming principal debt maturities including $338 million of senior debt notes due between May and June 2012, and $1 billion under Ally's secured credit facility due on May 14, 2012. Absent support from Ally, Fitch believes that ResCap is not likely to be able to meet these scheduled debt maturities, which could result in a potential bankruptcy or debt restructuring. Fitch has placed Ally's 'BB-' long-term IDR and senior unsecured debt ratings on Rating Watch Negative because of the potential negative implications for Ally if its subsidiary, ResCap, is placed into bankruptcy. Fitch believes that Ally may be more vulnerable to limitations in its access to unsecured funding given its own 2012 debt maturities. While over the long-term Ally creditors could ultimately benefit from an orderly ResCap resolution, near-term complications that could arise from a potential ResCap bankruptcy proceeding, including litigation risk or legal challenges, elevate the risk of a potential Ally downgrade. In the coming weeks, Fitch will monitor ResCap's ability and willingness to meet its financial obligations and the implications on its parent, Ally. In the event ResCap defaults on its obligations or restructures its debt, Fitch would downgrade ResCap's rating to 'D' or 'RD' depending on the specifics of bankruptcy or restructuring. If Ally faces challenges refinancing its own debt obligations or has reduced access to the unsecured debt markets as a result of potential complications arising from a ResCap resolution, Fitch could consider lowering Ally's ratings. Established in 1919, Ally operates one of the world's largest automotive finance companies in the U.S., Canada and 15 other countries. With approximately $184 billion in assets as of Dec. 31, 2011, Ally operates as a bank holding company. ResCap is an indirect wholly owned subsidiary of Ally. Through its originations and servicing business, ResCap originates, purchases, and services residential mortgage loans. As of Dec. 31, 2011, ResCap had a total servicing book of $382 billion, making it the fifth largest servicer in the U.S. Fitch has taken the following rating actions on ResCap: --Long-term IDR downgraded to 'C' from 'CCC'; --Short-term IDR affirmed at 'C'; --Senior unsecured affirmed at 'C/RR6'; --Short-term debt affirmed at 'C'. The ratings on Ally's subsidiaries principally reflect the irrevocable and unconditional guarantee from Ally Financial. Fitch places the following ratings of Ally on Rating Watch Negative: Ally Financial Inc. Long-term IDR 'BB-'; Senior unsecured 'BB-'; Viability rating 'bb-'; Perpetual preferred securities, series A 'CCC'. GMAC Capital Trust I Trust preferred securities, series 2 'B-'. GMAC International Finance B.V. Long-term IDR 'BB-'; Senior unsecured 'BB-'. GMAC Bank GmbH Long-term IDR 'BB-'; Senior unsecured 'BB-'. Ally Credit Canada Limited Long-term IDR 'BB-'; Senior unsecured 'BB-'. GMAC Financial Services NZ Limited Long-term IDR 'BB-'. GMAC Australia LLC Long-term IDR 'BB-'. Fitch has affirmed the following ratings of Ally: Ally Financial Inc. Short-term IDR at 'B' Short-term debt at 'B'; Support at '5'; Support Floor at 'NF', Long-term FDIC guaranteed debt at 'AAA'; GMAC International Finance B.V. Short-term IDR at 'B'; Short-term debt at 'B'. GMAC Bank GmbH Short-term IDR at 'B'; Short-term debt at 'B'. Ally Credit Canada Limited Short-term IDR at 'B'; Short-term debt at 'B'. GMAC Financial Services NZ Limited Short-term IDR at 'B'; Short-term debt at 'B'. GMAC Australia LLC Short-term IDR at 'B'; Short-term debt at 'B'. GMAC (U.K.) plc Short-term IDR at 'B'; Short-term debt at 'B'. RITE AID: Jean Coutu Discloses 24.8% Equity Stake ------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, The Jean Coutu Group (PJC) Inc. and its affiliates disclosed that, as of April 17, 2012, they beneficially own 223,201,162 shares of common stock of Rite Aid Corporation representing 24.8% based on 898,454,487 shares of the Company's common stock outstanding as of Dec. 14, 2011, as reported in Company's Form 10-Q for the quarterly period ended Nov. 26, 2011. As reported by the TCR on July 12, 2011, Jean Coutu and its affiliates reported beneficial ownership of 238,725,262 common shares or 26.8% equity stake. A copy of the amended filing is available for free at: http://is.gd/ACa1I0 About Rite Aid Corp. Drugstore chain Rite Aid Corporation (NYSE: RAD) -- http://www.riteaid.com/-- based in Camp Hill, Pennsylvania, has more than 4,700 stores in 31 states and the District of Columbia and fiscal 2010 annual revenues of $25.7 billion. The Company reported a net loss of $368.57 million on $26.12 billion of revenue for the 53 weeks ended March 3, 2012, compared with a net loss of $555.42 million on $25.21 billion of revenue for the 52 weeks ended Feb. 26, 2011. The Company's balance sheet at March 3, 2012, showed $7.36 billion in total assets, $9.95 billion in total liabilities and a $2.58 billion total stockholders' deficit. * * * In February 2012, S&P affirmed Rite Aid's 'B-' corporate credit rating. During that time, Moody's Investors Service also affirmed its Caa2 Corporate Family Rating, Caa2 Probability of Default Rating, and SGL-3 Speculative Grade Liquidity rating. "The ratings reflect our expectation that Camp Hill, Pa.-based retail drugstore chain Rite Aid Corp.'s financial risk profile will remain 'highly leveraged', despite improving sales trends, due to its significant debt," said Standard & Poor's credit analyst Ana Lai. Moody's said, Rite Aid's Caa2 Corporate Family Rating reflects its weak credit metrics and unsustainable capital structure with debt to EBITDA of 8.8 times and EBITA to interest expense of 0.8 times. Although Moody's believes that Rite Aid earnings will benefit from Walgreen's dispute with Express Scripts as well as from the strong generic pipeline, Moody's anticipates that lower reimbursement rates will offset some of this positive earnings pressure. Thus, Moody's forecasts that Rite Aid's credit metrics will remain weak. In addition, Rite Aid faces a tradeoff between the need to address its sizable 2014 and 2015 debt maturities against the likelihood that any refinancing will be at a higher interest rate. Should Rite Aid successfully refinance its 2014 and 2015 debt maturities, its borrowing costs will likely increase further weakening Rite Aid's interest coverage. Consequently, Moody's is concerned that Rite Aid may choose to voluntarily restructure its debt over the medium term. ROBERTS HOTELS: Spartanburg's Clarion Hotel Owner in Chapter 11 --------------------------------------------------------------- Roberts Hotels Spartanburg, LLC, filed a bare-bones Chapter 11 petition (Bankr. E.D. Mo. Case No. 12-43756) in its hometown in St. Louis, Missouri on April 19, 2012. The Debtor estimated assets of up to $50 million and debts of up to $10 million. The Debtor said in its petition that the principal asset is located at 9027 Fair Forest Road, in Spartanburg, South Carolina. That is the address of Clarion Hotel, A Roberts Hotel, formerly named Radisson Hotel & Suites Spartanburg, according to listings from TripAdvisor.com. According to the case docket, the schedules of assets and liabilities, the statement of financial affairs and other incomplete filings are due May 3, 2012. The Debtor is required to file its Chapter 11 plan and an explanatory disclosure statement by Aug. 17, 2012. The Debtor is represented by A. Thomas DeWoskin, Esq., at Danna McKitrick, PC, in St. Louis. ROBERTS HOTELS: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Roberts Hotels Spartanburg, LLC 1408 North Kingshighway, Suite 300 Saint Louis, MO 63113 Bankruptcy Case No.: 12-43756 Chapter 11 Petition Date: April 19, 2012 Court: U.S. Bankruptcy Court Eastern District of Missouri (St. Louis) Judge: Barry S. Schermer Debtor's Counsel: A. Thomas DeWoskin, Esq. DANNA MCKITRICK, P.C. 7701 Forsyth, Suite 800 St. Louis, MO 63105 Tel: (314) 726-1000 E-mail: tdewoskin@dmfirm.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Michael Kirtley, chief operating officer. ROC FINANCE: Moody's Confirms 'B3' CFR; Outlook Stable ------------------------------------------------------ Moody's Investors Service confirmed the ratings of ROC Finance LLC, including its B3 corporate family and probability of default ratings. At the same time, the Ba3 ratings on ROC's bank debt and Caa1 rating on its second lien notes were confirmed. The rating outlook is stable. This confirmation concludes the rating review initiated on February 1, 2012 following ROC's announcement that a section of flooring in its Horseshoe Cincinnati casino, under construction, collapsed on January 27, 2012. Additionally, in the month preceding this announcement, ROC reported a construction incident at its Cleveland casino's parking garage, and the Ohio Casino Control Commission (OCCC) announced that it was delaying the opening of Horseshoe Cleveland casino project and the Toledo casino project (not related to ROC). The confirmation of ROC's B3 Corporate Family Rating (CFR) reflects Moody's expectation that the construction incidents and the licensing delay will not have a significant negative effect on the budget and timing of completion of both the Cleveland and Cincinnati projects. Specifically, costs associated with the construction incidents will be covered by insurance (the company has a small deductible) and within the available contingency. The OCCC delayed the opening of Horseshoe Cleveland, which is now scheduled to open on May 14, 2012. Moody's does not expect this delay will materially affect the Cleveland budget or pro forma earnings and cash flow. The garage is expected to be completed in time for the opening of the casino. Moody's notes that the competing racinos in northeast Ohio are not likely to open until 2013, later than expected when ratings were first assigned, thereby increasing the probability ROC can meet its earnings plan. The following ratings are confirmed: Corporate Family Rating at B3 Probability of Default Rating at B3 $25 million senior secured revolver expiring 2016 at Ba3 (LGD 2, 23%) $150 million senior secured term loan due 2017 at Ba3 (LGD 2, 23%) $125 million senior secured delayed draw term loan due 2017 at Ba3 (LGD 2, 23%) $380 million 12.125% second lien notes due 2018 at Caa1 (LGD 5, 78%) Ratings Rationale ROC Finance LLC's B3 CFR continues to reflect the company's construction and ramp-up risk in a new gaming jurisdiction, reliance on completion of the Cleveland casino to help fund development of the Cincinnati casino, and legislative and regulatory risks in Ohio. The ratings reflect Moody's view that the operating experience of the project manager, Caesars Entertainment Corporation (Caa1/stable), its established database of potential gaming customers that are members of Caesars' Total Rewards gaming loyalty program, and the market profile of both Cleveland and Cincinnati will enable each casino to reach the projected level of profitability. Additionally, the project has adequate liquidity to support completion and ramp-up. Moody's expects debt/EBITDA by year-end 2013 when both casinos are open to range between 5.0 times to 5.5 times and EBITDA to interest to be between 1.5 times to 1.9 times (unchanged from Moody's previous publication). ROC faces risks associated with cost-over runs and timely completion. The project budget contemplates cash flow from the Cleveland casino will help fund approximately $70 million of development costs which adds to the risk profile of the project. Moody's believes the population density and favorable demographics of both Cleveland and Cincinnati's primary market area will enable each casino to meet its targeted rate of return. The budget contains an 18 month interest reserve and a $40 million contingency (used in part for planned Cleveland land purchases, but largely available) and a $25 million completion guaranty (unused at this time). Additionally, ROC has obtained a $25 million first lien revolver that can be utilized to support unexpected contingencies. The stable rating outlook reflects Moody's expectation that ROC has sufficient funds to complete construction and ramp-up of Horseshoe Cleveland and Horseshoe Cincinnati and that the casinos can earn a reasonable return on investment such that at year-end 2013 debt to EBITDA will range between 5.0 times to 5.5 times. Ratings could be lowered if the project experiences cost over-runs or construction delays. Ratings could also be downgraded if Horseshoe Cleveland is unable to achieve EBITDA in 2012 of between $60 million to $70 million. Ratings improvement is limited at this time given the need to complete construction and ramp-up of two full scale casinos. However, if it appears that the Cleveland facility can generate EBITDA above $75 million in 2012 and the Cincinnati facility is on time and on budget, the ratings could be considered for an upgrade. The principal methodology used in rating ROC Finance LLC was the Global Gaming Industry Methodology published in December 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. ROC Finance, LLC is indirectly owned by Rock Ohio Caesars LLC. Rock Ohio Caesars LLC is a joint venture between Caesars Entertainment Corporation and Rock Ohio Ventures LLC. The principal investor in Rock Ohio Ventures LLC is Dan Gilbert, chairman and founder of Quicken Loans and majority owner of the Cleveland Cavaliers NBA franchise. Through various subsidiaries, ROC is developing two casinos located in Cleveland and Cincinnati, Ohio. The two properties will be managed by affiliates of Caesars and will be branded Horseshoe Cleveland and Horseshoe Cincinnati. Horseshoe Cleveland is to be located in the first fMoody's floors of the Higbee Building located near Quicken Loans Arena. The casino will feature 96,000 square feet of gaming space, 2,100 slots, 65 table games, an approximate 30 table World Series of Poker room and various restaurant venues. Horseshoe Cincinnati is to be located in downtown Cincinnati and will feature 100,000 square feet of gaming space, 2,300 slots, 73 table games, a 31 table World Series of Poker room and various dining options. ROCK POINTE: Status Quo on Use of DMARC Cash Until Hearing Set -------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Washington has ordered that to maintain the status quo until entry of a final order by the Court regarding adequate protection payments is entered, all Cash Collateral in Rock Pointe Holdings Company, LLC's case will be used, expended and disbursed in accordance with such practices as the Receiver and Black Realty Management, Inc., the Receiver's Agent, have followed from until a date has been confirmed for the final hearing on cash collateral, in operating, managing and leasing the Property;, provided, however, that: (a) The Receiver and BRMI will pay to DMARC 2006-CD2 Corporate Center LLC $292,000 as adequate protection payments commencing on Dec. 15, 2011, and on or before the 15th of each month thereafter pending a final hearing and order on adequate protection; (b) the Receiver and BRMI will retain all unexpended funds not otherwise disbursed in accordance with this Second Interim Order or as required pursuant to the 543 Order (referring to the Jan. 19, 2012 Second Interim Order Excusing Compliance with 11 U.S.C. Section 543) in the operational bank account; and (c) The Receiver and BRMI are directed to pay pursuant to 11 U.S.C. Section 1930(a)(6) the U.S. Trustee's regularly occurring fee on a quarterly basis as an ordinary course expense of the Receivership case. The Court further ordered that: * To the extent that any Cash Collateral should come into the Debtor's possession, Debtor will immediately deliver the same to the Receiver. * The Receiver and BRMI are authorized to maintain and use the existing pre-petition operating account at Sterling Savings under account No. XXXXX3078 for the receipt and disbursement of all prepetition and postpetition Cash Collateral. * DMARC is granted a postpetition security interest and lien in all real and personal property acquired by Debtor or the Receiver after the date of the Petition. * This Second Interim Order will remain effective until a final hearing on use of cash collateral and adequate protection payments for April 5 and 6, 2012, or further Court order. DMARC claims to hold a first, valid and existing security interest in the Debtor's property and all rents, income and revenues related to the same. A copy of the Second Interim Cash Collateral Order is available for free at http://bankrupt.com/misc/rockpointe.doc80.pdf DMARC's counsel can be reached at: Christine Kosydar, Esq. John E. Glowney, Esq. STOEL RIVES LLP 900 SW 5th Avenue, Suite 2600 Portland, OR 97204 Tel: (503) 224-3380 Fax: (503) 220-2480 E-mail: cakosydar@stoel.com jeglowney@stoel.com About Rock Pointe Rock Pointe Holdings Company LLC owns the Rock Pointe Corporate Center in Spokane, Washington. The Company filed for Chapter 11 protection (Bankr. E.D. Wash. Case No.11-05811) on Dec. 2, 2011, halting a foreclosure effort by creditors owed more than $65 million. Rock Pointe's commercial office complex in north Spokane includes four buildings with more than 560,000 square feet of space. It was sold by its developer, Walt Worthy, to Prium Cos. LLC, of Tacoma, in 2005. Brett L. Wittner, Esq., at Kent & Wittner PS, represents the Debtor. The Debtor estimated both assets and debts of between $50 million and $100 million. The United States Trustee said an official committee under 11 U.S.C. Sec. 1102 has not been appointed in the bankruptcy case of Rock Pointe Holdings Company because an insufficient number of persons holding unsecured claims against the Debtor have expressed interest in serving on a committee. ROOMSTORE INC: Court Approves BDO USA as Auditor ------------------------------------------------ RoomStore, Inc., sought and obtained approval from the U.S. Bankruptcy Court to employ BDO USA LLP as auditor. The compensation structure to which the Debtor and BDO agreed are: 1. $139,000 for the audit of the Feb. 29, 2012 annual report; 2. $25,000 for each quarterly review; and 3. $75,000 for the audit of the emergence balance sheet. The firm's rates are: Personnel Rates --------- ----- Partner $300-$450 Manager/Senior Manager $175-$275 Senior $145-$175 Staff $110-$145 Chris Craven attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About RoomStore Inc. Richmond, Virginia-based RoomStore, Inc., operates retail furniture stores and offers home furnishings through Furniture.com, a provider of Internet-based sales opportunities for regional furniture retailers. RoomStore was founded in 1992 in Dallas, Texas, with four retail furniture stores. With more than $300 million in net sales for its fiscal year ending 2010, RoomStore was one of the 30 largest furniture retailers in the United States. RoomStore filed for Chapter 11 bankruptcy (Bankr. E.D. Va. Case No. 11-37790) on Dec. 12, 2011, following store-closing sales at four of its retail stores, located in Hoover, Alabama; Fayetteville, North Carolina; Tallahassee, Florida; and Baltimore, Maryland. When it filed for bankruptcy, the Company operated a chain of 64 retail furniture stores, including both large-format stores and clearance centers in eight states: Pennsylvania, Maryland, Virginia, North Carolina, South Carolina, Florida, Alabama, and Texas. It also had five warehouses and distribution centers located in Maryland, North Carolina, and Texas that service the Retail Stores. RoomStore also owns 65% of Mattress Discounters Group LLC, which operates 83 mattress stores (as of Aug. 31, 2011) in the states of Delaware, Maryland and Virginia and in the District of Columbia. RoomStore acquired the Mattress Discounters stake after it filed its second bankruptcy in 2008. Mattress Discounters sought Chapter 11 relief on Sept. 10, 2008 (Bankr. D. Md. Case Nos. 08-21642 and 08-21644). It filed the first Chapter 11 bankruptcy on Oct. 23, 2002 (Bankr. D. Md. Case No. 02-22330), and emerged on March 14, 2003. Judge Douglas O. Tice, Jr., presides over RoomStore's case. Lawyers at Lowenstein Sandler PC and Kaplan & Frank, PLC serve as the Debtor's bankruptcy counsel. FTI Consulting, Inc., serves as the Debtor's financial advisors and consultants. RoomStore's balance sheet at Aug. 31, 2011, showed $70.4 million in total assets, $60.3 million in total liabilities, and stockholders' equity of $10.1 million. The petition was signed by Stephen Girodano, president and chief executive officer. Liquidator Hilco Merchant Resources, Inc., is represented in the case by Gregg M. Galardi, Esq., at DLA Piper LLP (US); and Robert S. Westermann, Esq., and Sheila de la Cruz, Esq., at Hirschler Fleischer, P.C. The U.S. Trustee for Region 4 named seven members to the official committee of unsecured creditors in the case. ROSETTA GENOMICS: Receives Key European Patent on Oncology ---------------------------------------------------------- Rosetta Genomics, Ltd., received a grant from the European Patent Office for a patent claiming the use of miR-34a for the preparation of pharmaceuticals for treating p53-negative cancers. The issued claims cover a core element of Rosetta Genomics' microRNA technology in the development of cancer therapeutics associated with p53-negative cancers. The patent is jointly owned with Yeda, the technology transfer company of the Weizmann Institute of Science in Rehovot, Israel. The p53 protein is a sequence-specific transcription factor that functions as a major tumor suppressor in mammals. Inactivation of the tumor-suppressor function of p53 is one of the most frequent genetic alterations in human cancer, and close to half of all human tumors carry p53 gene mutations within their cells. The invention covered by this new patent discloses the finding that miR-34a, which is a direct transcriptional target of p53, possesses anti-proliferative and pro-apoptotic activities, thereby contributing to the tumor suppressor effects of activated p53. Overexpression of miR-34a exerts anti-proliferative effects and promotes cell death, whereas inactivation of miR-34a attenuates p53-mediated cell death. Thus, miR-34a is a direct transcriptional target of p53, which may mediate some of the biological effects of this tumor suppressor. Perturbation of miR- 34a expression may thus contribute to tumorigenesis. Commenting on the clinical utility for such a potential microRNA- based therapeutic, Moshe Oren, Department of Molecular Cell Biology, Weizmann Institute of Science and a lead researcher of this work, said, "p53 is a major player in many cancers, and our new findings regarding the role of miR-34a in exerting its effects, has major therapeutic implications. One can envision a therapeutic based on mimicking mir-34a, in p53-negative cancers, thus overcoming part of the negative effects of missing this important tumor suppressor." Commenting on the European patent allowance, Kenneth A. Berlin, President and Chief Executive Officer of Rosetta Genomics, said, "We are delighted to add this European patent to our growing worldwide intellectual property portfolio. This patent is important as it protects key elements of our microRNA technology to develop treatments for a variety of cancers. These claims provide significant protection for our proprietary technology, create formidable barriers to entry for any would-be competitors and offer multiple opportunities for potential drug development partnerships. "Rosetta Genomics has pioneered the development of microRNA technology. We believe we have the earliest and broadest patents and patent applications related to composition of matter on microRNAs. This provides us with the widest access to the Sanger database, which is a key differentiating factor of our technology. This new patent is important for protecting our global leadership position in microRNA technology and resulting diagnostic and therapeutic products," added Mr. Berlin. About Rosetta Located in Rehovot, Israel, Rosetta Genomics Ltd. is seeking to develop and commercialize new diagnostic tests based on a recently discovered group of genes known as microRNAs. MicroRNAs are naturally expressed, or produced, using instructions encoded in DNA and are believed to play an important role in normal function and in various pathologies. The Company has established a CLIA- certified laboratory in Philadelphia, which enables the Company to develop, validate and commercialize its own diagnostic tests applying its microRNA technology. For the year ended Dec. 31, 2011, Kost Forer Gabbay & Kasierer, in Tel-Aviv, Israel, expressed substantial doubt about Rosetta Genomics' ability to continue as a going concern. The independent auditors noted that the Company has incurred recurring operating losses and generated negative cash flows from operating activities in each of the three years in the period ended Dec. 31, 2011. The Company reported a net loss after discontinued operations of $8.83 million on $103,000 of revenues for 2011, compared with a net loss after discontinued operations of $14.76 million on $279,000 of revenues for 2010. The Company's balance sheet at Dec. 31, 2011, showed $2.04 million in total assets, $2.40 million in total liabilities, and a stockholders' deficit of $356,000. "We have used substantial funds to discover, develop and protect our microRNA tests and technologies and will require substantial additional funds to continue our operations. Based on our current operations, our existing funds, including the proceeds from the January 2012 debt financing, will only be sufficient to fund operations until late May, 2012. We intend to seek funding through collaborative arrangements and public or private equity offerings and debt financings. Additional funds may not be available to us when needed on acceptable terms, or at all. In addition, the terms of any financing may adversely affect the holdings or the rights of our existing shareholders. For example, if we raise additional funds by issuing equity securities, further dilution to our then-existing shareholders may result. Debt financing, if available, may involve restrictive covenants that could limit our flexibility in conducting future business activities. If we are unable to obtain funding on a timely basis, we may be required to significantly curtail one or more of our research or development programs. We also could be required to seek funds through arrangements with collaborators or others that may require us to relinquish rights to some of our technologies, tests or products in development or approved tests or products that we would otherwise pursue on our own. Our failure to raise capital when needed will materially harm our business, financial condition and results of operations, and may require us to seek protection under the bankruptcy laws of Israel and the United States. ROTHSTEIN ROSENFELDT: Lexington Wants $10-Mil. Pay Order Amended ---------------------------------------------------------------- Zach Winnick at Bankruptcy Law360 reports that Lexington Insurance Co. asked a Florida bankruptcy judge April 17 to amend his order that it pay $10 million to settle claims against convicted Ponzi schemer Scott Rothstein's accountants, saying ambiguities could leave it vulnerable to double-payment in resolving claims related to Rothstein's $1.2 billion scheme. Law360 relates that attorneys for Lexington, the liability insurer for accounting firm Berenfeld Spritzer Shechter & Sheer LLP, filed a motion asking U.S. Bankruptcy Judge Raymond B. Ray to clarify his April 9 order requiring it to pay $10 million to Razorback Investors LLC. About Rothstein Rosenfeldt Scott Rothstein, co-founder of law firm Rothstein Rosenfeldt Adler PA -- http://www.rra-law.com/-- has been suspected of running a $1.2 billion Ponzi scheme. U.S. authorities claimed in a civil forfeiture lawsuit filed November 9, 2009, that Mr. Rothstein, the firm's former chief executive officer, sold investments in non- existent legal settlements. Mr. Rothstein pleaded guilty to five counts of conspiracy and wire fraud on January 27, 2010. Creditors of Rothstein Rosenfeldt Adler signed a petition sending the Florida law firm to bankruptcy (Bankr. S.D. Fla. Case No. 09-34791). The petitioners include Bonnie Barnett, who says she lost $500,000 in legal settlement investments; Aran Development, Inc., which said it lost $345,000 in investments; and trade creditor Universal Legal, identified as a recruitment firm, which said it is owed $7,800. The creditors alleged being owed money invested in lawsuit settlements. Herbert M. Stettin, the state-court appointed receiver for Rothstein Rosenfeldt, was officially carried over as the Chapter 11 trustee in the involuntary bankruptcy case. On June 10, 2010, Mr. Rothstein was sentenced to 50 years in prison. SABRA HEALTH: Moody's Upgrades CFR to 'B1'; Outlook Stable ---------------------------------------------------------- Moody's Investors Service has upgraded the senior unsecured rating of Sabra Health Care Limited Partnership to B1 from B2 and the corporate family rating of Sabra Health Care REIT, Inc. to B1 from B2. The outlook is stable. The ratings upgrade reflects the healthcare REIT's growth, improved tenant diversification, and maintenance of sound credit metrics. The stable outlook reflects Moody's expectation that Sabra will not experience a decline in rents as a result of the recent cut to skilled nursing facility (SNF) Medicare rates. Moody's also anticipates that Sabra will continue to execute on its strategic growth and diversification, while maintaining modest leverage. Ratings Rationale Moody's notes that Sabra has executed significant growth since its November 2010 separation from Sun Healthcare Group (B1 corporate family rating, stable). The REIT completed $212 million of acquisitions in 2011, which reduced its tenant concentration with Sun to 76% of revenues for 4Q11, down from 100% at the REIT's inception. Sabra has since announced another $40 million of transactions completed during 1Q12. Moody's expects the REIT will remain an active acquirer and, thus, reduce its exposure to Sun further. Sabra has sufficient capacity to fund continued growth, with a $200 million secured credit facility (the REIT had $42M of cash and $0 drawn on its revolver as of 4Q11) and no significant debt maturities until 2015. Moody's also notes that the REIT's modest leverage profile (debt plus preferred stock comprised 45% of gross assets as of 4Q11) is an additional credit positive supporting its rating. Sabra's key credit challenges remain its small size, early stage of growth, and still high tenant concentration with Sun Healthcare Group. The REIT's asset type concentration in SNFs is also a key credit concern as this sector is highly regulated and dependent on government reimbursements through Medicare and Medicaid. SNF Medicare rates were cut 11% effective 10/01/2011, which presents substantial challenges for operators including Sun Healthcare. Moody's believes that Sabra's lease with Sun remains secure as it is backed by a corporate guarantee and consolidated coverage (EBITDAR/Rent) across all of Sun's leased properties is expected to approximate 1.5x for 2012 (based on Sun's public guidance issued in January 2012). Although, Moody's notes that coverage on the Sabra owned properties is lower and the possibility of further rate cuts remains a key risk for SNF operators and, thus, their landlords. Positively, Moody's notes that Sabra's strong fixed charge coverage (2.9x for 4Q11) and sound liquidity provide cushion for the REIT's cash flows amidst the uncertain outlook. Moody's indicated that a rating upgrade would likely reflect increased size (gross assets closer to $1.2 billion), reduced tenant concentration (largest tenant less than 50% of revenues), maintenance of fixed charge coverage above 2.5x and Net Debt/EBITDA below 6x on a sustained basis. Sound property coverage ratios across all significant leases would also be necessary for a ratings upgrade. Negative rating pressure would likely result from sustained, substantial deterioration in EBITDAR coverage ratios, fixed charge coverage below 2.2x on a sustained basis, or material increases in secured debt, which could create subordination and pressure on the senior unsecured debt rating. Moody's last rating action for Sabra Health Care REIT was on October 15, 2010 when first-time ratings were assigned with a stable outlook. Sabra Health Care REIT, Inc. (Nasdaq:SBRA) is a self-managed real estate investment trust that, through its subsidiaries, owns and invests in real estate serving the healthcare industry. Sabra leases properties to tenants and operators throughout 24 states in the U.S. As of March 30, 2012, and after giving effect to Sabra's acquisition of the Pennsylvania Subacute Portfolio, Sabra's investment portfolio consisted of 78 skilled nursing facilities, ten combined skilled nursing, assisted living and independent living facilities, six assisted living facilities, two mental health facilities, one independent living facility, one continuing care retirement community, one acute care hospital and one mezzanine loan investment. The principal methodology used in this rating was Global Rating Methodology for REITs and Other Commercial Property Firms published in July 2010. SANOHO DEVELOPMENT: Condo Developer Files in San Fernando Valley ---------------------------------------------------------------- Sanoho Development, LLC, filed a Chapter 11 petition (Bankr. C.D. Calif. Case No. 12-13701) in San Fernando Valley, California, on April 20, 2012. The Debtor, a developer of condominium buildings, disclosed assets of $14.8 million and debts of $16.4 million as of bankruptcy filing date. The Debtor has $10.0 million of secured debt. The Debtor owns (i) 14 units of a 28-unit condominium building located at 4232 N. Satsuma Ave., North Hollywood, California, which property is worth $5.4 million, and (ii) a condominium building located at 11312 Huston Street, North Hollywood, California, consisting of 14 units, which property is worth $5.4 million. In its schedules, the Debtor says that it has a claim, worth $4 million, on account of a lender liability against IMH Secured Loan Fund, LLC, and its successors. The Debtor is represented by Jerome Bennett Friedman, Esq., at Friedman Law Group, P.C., in Los Angeles. SANOHO DEVELOPMENT: Case Summary & 12 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Sanoho Development, LLC 5737 Kanan Road #317 Agoura Hills, CA 91301 Bankruptcy Case No.: 12-13701 Chapter 11 Petition Date: April 20, 2012 Court: U.S. Bankruptcy Court Central District of California (San Fernando Valley) Judge: Alan M. Ahart Debtor's Counsel: Jerome Bennett Friedman, Esq. FRIEDMAN LAW GROUP, P.C. 1900 Avenue of the Stars, 11th Floor Los Angeles, CA 90067-4409 Tel: (310) 552-8210 Fax: (310) 733-5442 E-mail: jfriedman@jbflawfirm.com Scheduled Assets: $14,821,298 Scheduled Liabilities: $16,449,596 The petition was signed by Lynn Metrow, managing member. Debtor's List of Its 12 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Kay Beckwith Loan $150,000 27804 Rainier Road Castaic, CA 91384 Los Angeles County Tax Collector -- $85,000 225 North Hill Street Los Angeles, CA 90012 Richard Hart -- $54,000 969 Edgewater Boulevard, #139 Foster City, CA 94404 Satsuma Homeowners Association -- $50,000 Clear Path Construction -- $31,000 Trust Electric dba MGA Electric -- $30,000 T & U Roofing -- $7,400 DHS Associates -- $6,000 TRE Elevator -- $4,500 Majestic Ironworks -- $4,000 Unique Indoor Comfort -- $2,000 JP Daoust -- $850 SEQUENOM INC: MaterniT21 PLUS Covered Under MultiPlan Agreement --------------------------------------------------------------- Sequenom Center for Molecular Medicine, LLC, Sequenom, Inc.'s wholly-owned subsidiary, entered into an amendment to its MPI Participating Ancillary Agreement with MultiPlan, Inc., dated May 1, 2010. The Amendment amends the MultiPlan Agreement to provide, among other things, that Sequenom CMM's MaterniT21 PLUS laboratory-developed test is a covered service under the MultiPlan Agreement, subject to certain conditions. About Sequenom Sequenom, Inc. (NASDAQ: SQNM) -- http://www.sequenom.com/-- is a life sciences company committed to improving healthcare through revolutionary genetic analysis solutions. Sequenom develops innovative technology, products and diagnostic tests that target and serve discovery and clinical research, and molecular diagnostics markets. The company was founded in 1994 and is headquartered in San Diego, California. The Company reported a net loss of $74.15 million on $55.90 million of total revenues in 2011, a net loss of $120.84 million on $47.46 million of total revenues in 2010, and a net loss of $71.01 million on $37.86 million of total revenues in 2009. The Company's balance sheet at Dec. 31, 2011, showed $135.54 million in total assets, $44.16 million in total liabilities and $91.38 million in total stockholders' equity. SIGMA LABS: Pritchett Siler Raises Going Concern Doubt ------------------------------------------------------ Sigma Labs, Inc., filed on April 16, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. Pritchett, Siler & Hardy, P.C., in Salt Lake City, Utah, expressed substantial doubt about Sigma Labs' ability to continue as a going concern. The independent auditors noted that Sigma Labs was only recently formed and has not yet achieved profitable operations. The Company reported a net loss of $910,000 on $797,000 of revenues for 2011, compared with a net loss of $422,000 on $498,500 of revenues for 2010. The Company's balance sheet at Dec. 31, 2011, showed $1.27 million in total assets, $174,700 in total liabilities, and stockholders' equity of $1.10 million. A copy of the Form 10-K is available for free at: http://is.gd/WmOFU0 Santa Fe, New Mexico-based Sigma Labs, Inc., specializes in the development and commercialization of novel and unique manufacturing and materials technologies. Since its inception, the Company has generated revenues primarily from consulting services it provides to third parties. SKINNY NUTRITIONAL: Issues Add'l 46 Million Shares to Ironridge --------------------------------------------------------------- Skinny Nutritional Corp., on Jan. 27, 2012, filed a current report on Form 8-K reporting that it had issued an aggregate of 65,100,000 shares of the Company's common stock, par value $0.001 per share, to Ironridge Global IV, Ltd., in settlement of $1,255,231 in bona fide accounts payable of the Company. As previously reported, the Initial Shares were issued pursuant to an Order for Approval of Stipulation for Settlement of Claims between the Company and Ironridge, in settlement of the Accounts Payable which had been purchased by Ironridge from certain creditors. In addition, as previously reported, the Order provides that for every ten million shares of the Company's Common Stock that trade during the a defined calculation period, or if at any time during that period a daily VWAP is below 80% of the closing price on the day before the issuance date, the Company will immediately issue additional shares, subject to a 9.99% beneficial ownership limitation specified in the Order. Accordingly, pursuant to the adjustment mechanism specified in the Order, on April 17, 2012, the Company issued an additional 46,000,000 shares of Common Stock to Ironridge. The Additional Issuance was exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 3(a)(10) thereof, as an issuance of securities in exchange for bona fide outstanding claims, where the terms and conditions of such issuance are approved by a court after a hearing upon the fairness of those terms and conditions. As previously reported, on Jan. 9, 2012, the Company's Board of Directors approved the accelerated vesting of an aggregate of 3,575,000 options previously granted by the Company under its 2009 Equity Incentive Compensation Plan, including an aggregate of 1,500,000 options held by each of the Company's Chief Executive Officer and Chief Financial Officer. In addition, on that date the Company's Board of Directors approved the issuance of a total of 2,860,000 restricted shares of common stock to certain employees, including the Company's Chief Executive Officer and Chief Financial Officer, subject to the execution by the Company and the covered employees of agreements consenting to the cancellation of certain common stock purchase options in consideration of the receipt of such restricted shares of common stock. The total number of options covered by this arrangement is 3,575,000 employee stock options which were previously granted by the Company under its 2009 Equity Incentive Compensation Plan. The transaction was completed as of April 17, 2012, and as of that date, each of the Company's Chief Executive Officer and its Chief Financial Officer received 1,200,000 restricted shares of common stock in consideration of the surrender of 1,500,000 options. About Skinny Nutritional Bala Cynwyd, Pa.-based Skinny Nutritional Corp. (OTC BB: SKNY.OB) -- http://www.SkinnyWater.com/-- has developed and is marketing a line of enhanced waters, all branded with the name "Skinny Water" that are marketed and distributed primarily to calorie and weight conscious consumers. The Company reported a net loss of $7.66 million in 2011, compared with a net loss of $6.91 million in 2010. The Company's balance sheet at Dec. 31, 2011, showed $2.27 million in total assets, $4.01 million in total liabilities, all current, and a $1.73 million stockholders' deficit. For 2011, Marcum LLP, in Bala Cynwyd, Pennsylvania, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company had a working capital deficiency of $3,165,596, an accumulated deficit of $45,492,945, stockholders' deficit of $1,736,400 and no cash on hand. The Company had net losses of $7,665,855 and $6,914,269 for the years ended Dec. 31, 2011, and 2010, respectively. Additionally, the Company is currently in arrears under its obligation for the purchase of trademarks. Under the agreement, the seller of the trademarks may choose to exercise their legal rights against the Company's assets, which includes the trademarks. SLM CORPORATION: Moody's Issues Summary Credit Opinion ------------------------------------------------------ Moody's Investors Service issued a summary credit opinion on SLM Corporation and includes certain regulatory disclosures regarding its ratings. The release does not constitute any change in Moody's ratings or rating rationale for SLM Corporation. Moody's current ratings on SLM Corporation are: Long Term Corporate Family Ratings (domestic currency) ratings of Ba1 Senior Unsecured (domestic and foreign currency) ratings of Ba1 Senior Unsecured MTN Program (domestic currency) ratings of (P)Ba1 Preferred Stock (domestic currency) ratings of Ba3 (hyb) Preferred Stock Non-cumulative (domestic currency) ratings of Ba3 (hyb) Senior Unsecured Shelf (domestic currency) ratings of (P)Ba1 Subordinate Shelf (domestic currency) ratings of (P)Ba2 Preferred Shelf (domestic currency) ratings of (P)Ba3 Preferred shelf -- PS2 (domestic currency) ratings of (P)Ba3 Commercial Paper ratings of NP RATING RATIONALE SLM has made progress in improving its operating performance, as improving private student loan origination volumes, improved asset quality, and continued operating expense containment have led to improved core profitability. SLM has also maintained satisfactory liquidity and financial flexibility and has made progress in transitioning the government student loan business to a servicing- based model from the previous FFELP lending model. On the other hand SLM is still in the process of a long-term, significant transition in the company's business model, as earnings and cash flow from large legacy run-off portfolios of FFELP and private student loans need to be replaced by income from "growth businesses" composed of Sallie Mae Bank (ongoing private student loan originations) and fee-based businesses including loan servicing. This necessarily entails risks that are opaque as the company encounters challenges to its plans. Rating Outlook The rating outlook is stable. What Could Change the Rating - Up As noted, SLM is undergoing a long-term, significant transition in the company's business model. This necessarily entails risks that are opaque as the company encounters challenges to its plans. Therefore, Moody's expects that there will be limited upward rating pressure on the company for some time. Key ratings drivers would be sustained robust earnings contributions from growth businesses; continued improvement of capital and cash flow coverage metrics; improvement of unrestricted liquidity in relation to next-24-months unsecured debt maturities; and continued improvement of asset quality in the form of lower delinquencies and charge-offs. What Could Change the Rating - Down Negative pressure on the ratings could develop if the business model transition results in cash flow generation, and therefore additional sources of unrestricted liquidity, that underperform Moody's expectations and provide less robust financial flexibility in relation to unsecured debt obligations. Additionally, if capital and cash flow coverage metrics weaken, this could put negative pressure on the rating. The principal methodology used in this rating was Finance Company Global Rating Methodology published in March 2012. SOLYNDRA LLC: No Creditors Object to Longer Exclusivity ------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that creditors of Solyndra LLC are evidently satisfied with the progress of the Chapter 11 liquidation of the defunct solar-panel maker that was partly financed by the U.S. government. No one objected to an extension of the company's exclusive right to propose a plan, allowing the bankruptcy judge in Delaware to sign an order on April 18 pushing exclusivity out by three months to July 2. About Solyndra LLC Founded in 2005, Solyndra LLC was a U.S. manufacturer of solar photovoltaic solar power systems specifically designed for large commercial and industrial rooftops and for certain shaded agriculture applications. The Company had 968 full time employees and 211 temporary employees. Solyndra has sold more than 500,000 of its panels since 2008 and generated cumulative sales of over $250 million. Fremont, California-based Solyndra and affiliate 360 Degree Solar Holdings Inc. sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-12799) on Sept. 6, 2011. Solyndra is at least the third solar company to seek court protection from creditors since August 2011. Judge Mary F. Walrath presides over the Debtors' cases. The Debtors are represented by Pachulski Stang Ziehl & Jones LLP as legal adviser. AlixPartners LLP serves as noticing claims and balloting agent. Imperial Capital LLC serves as the company's investment banker and financial adviser. The Debtors also tapped former Massachusetts Governor William F. Weld, now with the law firm McDermott Will & Emery, to represent the company in government investigations and related litigation. BDO Consulting, a division of BDO USA, LLP, as financial advisor and BDO Capital Advisors, LLC, serves as investment banker for the creditors' panel. Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed seven unsecured creditors to serve on the Official Committee of Unsecured Creditors of Solyndra LLC. The Committee has tapped Blank Rome LLP as counsel. In October 2011, the Debtors hired Berkeley Research Group, LLC, and designated R. Todd Neilson as Chief Restructuring Officer. Solyndra is at least the fourth solar company to seek court protection from creditors since August 2011. Other solar firms are Evergreen Solar and start-up Spectrawatt Inc., both of which filed in August, and Stirling Energy Systems Inc., which filed for Chapter 7 bankruptcy late in September. Solyndra owed secured lenders $783.8 million, including $527.8 million to the U.S. government pursuant to a federal loan guarantee, and held assets valued at $859 million as of the Petition date. The U.S. Federal Financing Bank, owned by the U.S. Treasury Department, is the Company's biggest lender. When they filed for Chapter 11, the Debtors pursued a two-pronged strategy to effectuate either a sale of their business to a "turnkey" buyer who may acquire substantially all of Solyndra's assets or, if the Debtors were unable to identify any potential buyers, an orderly liquidation of the assets for the benefit of their creditors. Solyndra did not receive acceptable offers to buy the business as a going concern. Two auctions late last year brought in a total of $8 million. A three-day auction in February generated another $3.8 million. SOUPMAN INC: Posts $741,100 Net Loss in Feb. 29 Quarter ------------------------------------------------------- Soupman, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $741,000 on $559,400 of sales for the three months ended Feb. 29, 2012, compared with a net loss of $2.47 million on $383,400 of sales for the three months ended Feb. 28, 2011. The Company reported a net loss of $1.98 million on $943,310 of sales for the six months ended Feb. 29, 2012, compared with a net loss of $2.49 million on $383,400 of sales for the six months ended Feb. 28, 2011. The Company's balance sheet at Feb. 29, 2012, showed $1.30 million in total assets, $7.18 million in total liabilities, and a stockholders' deficit of $5.88 million. Berman & Company, P.A., in Boca Raton, Florida, expressed substantial doubt about Soupman's ability to continue as a going concern, following the Company's results for the fiscal year ended Aug. 31, 2011. The independent auditors noted that the Company has a net loss of $6.21 million and net cash used in operations of $2.11 million for the year ended Aug. 31, 2011; and has a working capital deficit of $5.47 million, and a stockholders' deficit of $4.68 million at Aug. 31, 2011. A copy of the Form 10-Q is available for free at: http://is.gd/VoC8Se Staten Island, New York-based Soupman, Inc., currently manufactures and sells soup to grocery chains and other outlets and to its franchised restaurants under the brand name "The Original Soupman". SOUTHERN OAKS: Files Cash Collateral Budget for Q1 2012 ------------------------------------------------------- Southern Oaks of Oklahoma, LLC, has filed with the U.S. Bankruptcy Court for the Western District of Oklahoma the cash collateral budget for the first three months of 2012. A copy of the cash collateral budget is available for free at: http://bankrupt.com/misc/SOUTHERN_OAKS_budget.pdf As reported in the Troubled Company Reporter on April 5, 2012, Southern Oaks of Oklahoma obtained final approval from Bankruptcy Judge Niles Jackson to use cash collateral and provide adequate protection to secured creditors InterBank, Quail Creek Bank, and First Enterprise Bank. As reported by the TCR on Feb. 13, 2012, the Debtor sought the Court's permission to use cash collateral and provide adequate protection to secured creditors, including InterBank, formerly known as Union Bank and Rose Rock Bank, QCB, Kirkpatrick Bank, Suntrust Mortgage, Inc., and Onewest Bank FSB, formerly IndyMac, as a result of loans to the Debtor. The Debtor wanted to use the collateral to pay expenses in accordance with a proposed three- month budget through April 2012. The Debtor's properties have been mortgaged to the secured creditors. According to papers filed by the Debtor, Quail Creek Bank has a mortgage on 28 single family residences, 1 duplex and 1 commercial property owned by the Debtor. The properties have a market value of $1,739,364. Quail Creek is owed part of $3,654,238, which is secured by 37 other properties. About Southern Oaks Southern Oaks of Oklahoma, LLC, filed for Chapter 11 bankruptcy (Bankr. W.D. Okla. Case No. 12-10356) on Jan. 31, 2012. Judge Niles L. Jackson presides over the case. Ruston C. Welch, Esq., at Welch Law Firm P.C., serves as the Debtor's counsel. It scheduled $14,788,414 in assets and $15,352,022 in liabilities. The petition was signed by Stacy Murry, manager of MBR. Affiliates that filed separate Chapter 11 petitions are Charlemagne of Oklahoma, LLC (Bankr. W.D. Okla. Case No. 10-13382) on July 2, 2010; and Brookshire Place, LLC (Bankr. W.D. Okla. Case No. 11-10717) on Feb. 23, 2011. Southern Oaks owns a 126-unit apartment complex in south Oklahoma City, 115 single family residences, 10 residential duplexes and 4 commercial properties in the Oklahoma City Metro area and a 100 unit apartment complex in Pryor, Oklahoma. Southern Oaks operates the non-apartment Properties by and through an affiliate property management company, Houses For Rent of OKC LLC, who advertises, leases, collects rents, pays expenses, provides equipment, labor and materials for maintenance, repairs and make ready services. On Jan. 12 and 27, 2012, the Debtor's ownership and operation of the Properties was consolidated by the merger of various affiliate entities with the Debtor being the surviving entity. Those entities are Southern Oaks Of Oklahoma, LLC; Quail 12, LLC; Quail 13, LLC; 1609 N.W. 47th, LLC; 2233 S.W. 29th, LLC; 400 S.W. 28th, LLC; South Robinson, LLC; 9 on S.E. 27th, LLC; Southside 10, LLC; QCB 08, LLC; and Prairie Village of Oklahoma, LLC. SPX ANALYTICS: Files for Chapter 11 in Milwaukee ------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that SPX Analytics LLC, a high-frequency stock trader, filed for Chapter 11 protection (Bankr. E.D. Wis. Case No. 12- 25297) on April 17 in Milwaukee, its hometown, saying assets and debt are both less than $10 million. SPX said it uses "proprietary mathematical algorithm software" to predict movements in stock prices. Stock positions are usually closed out by the end of the trading day, according to court papers. Trading is done mostly on the New York Stock Exchange and Bovespa, the Brazilian stock exchange. Trades are carried out through Stock USA Execution Services Inc., which agreed to continue providing margin credit during bankruptcy. STARLIGHT INVESTMENTS: To Sell Modigene & WaferGen Shares --------------------------------------------------------- Melvyn J. Carter, John A.G. Alexander and Robin H. Davis of Carter Backer Winter LLP, in their capacity as joint liquidators of Starlight Investments Limited (in administrative receivership and liquidation), ask the U.S. Bankruptcy Court in Manhattan: (i) for authority to act on the Debtor's behalf to freely sell certain shares or exercise certain warrants of Modigene, Inc., owned by the Debtor, and freely sell certain shares or exercise certain warrants of WaferGen Bio-systems, Inc., owned by the Debtor, free and clear of liens or encumbrances, pursuant to 11 U.S.C. Sections 363 and 1520, in connection with the creditors' voluntary liquidation of the Debtor pending in the United Kingdom; (ii) to permit Source Capital Group, Inc., to process the sale or exercise of the Stock; and (iii) to waive the stay of Rule 6004(h) of the Federal Rules of Bankruptcy Procedure with respect to the proposed sale or exercise of the Stock. Modigene changed its name to PROLOR Biotech, Inc., on June 10, 2009 following approval at its annual general meeting on May 21, 2009. On June 12, 2009, and in connection with the name change, Modigene shares began trading on the American Stock Exchange under the symbol PBTH. Starlight Investments is a company registered in the England and Wales. On July 15, 2008, James J. (Shay) Bannon, Mark J. Shaw and Toby S. Underwood were appointed as joint administrative receivers of Starlight Investments by Norwich Union Mortgage Finance Limited, pursuant to a deed of legal charge between Starlight Investments and Norwich, dated Aug. 30, 2002. Norwich officially changed its name to Aviva Commercial Finance Limited by its shareholders passing a special resolution (75% majority) pursuant to section 28 of the Companies Act of 1985, a UK statute. On Dec. 30, 2010, Toby S. Underwood ceased to act as an administrative receiver of Starlight Investments, leaving James J. (Shay) Bannon and Mark J. Shaw as the joint administrative receivers of Starlight Investments. The Receivership Appointment coincided with enforcement action being taken by Norwich in relation to Starlight Investments' group. On April 30, 2009, Starlight Investments was placed into creditors' voluntary liquidation by a special resolution (75% majority) of Starlight Investments' shareholders under section 378(2) of the Companies Act and section 84(1)(b) of the Insolvency Act of 1986, and the Petitioners were appointed as Joint Liquidators following resolutions of the Debtor's shareholders, under section 100 of the Insolvency Act, and of the Debtors' creditors, under section 98 of the Insolvency Act. The Joint Liquidators have filed a notice of appointment of liquidator with the Registrar of Companies for England and Wales, pursuant to section 109(1) of the Insolvency Act. The Liquidators of Starlight Investments filed a Chapter 15 petition (Bankr. S.D.N.Y. Case No. 12-11566) on April 16, 2012, seeking recognition of the UK Proceeding as a "foreign main proceeding" as defined in Bankruptcy Code section 1502(4) and seeking other necessary relief in support of the UK Proceeding. Judge Stuart M. Bernstein presides over the Chapter 15 case. Timothy W. Walsh, Esq., at DLA Piper LLP (US), in New York, serves as counsel of the foreign representative. The Debtor is estimated to have assets of US$100 million to US$500 million and debts of US$500 million to US$1 billion. The Stock is among the Debtor's last remaining property to be liquidated in connection with the UK Proceeding. The Stock consists of 200,000 shares of Modigene common stock, a warrant to purchase 50,000 shares of Modigene common stock, 200,000 shares of WaferGen common stock and a warrant to purchase 60,000 share of WaferGen common stock. Shares of Modigene trade publicly on the American Stock Exchange under the symbol PBTH and shares of WaferGen trade publicly on the Over-the-Counter Bulletin Board under the symbol WGBS. As required by section 4(2) of the Securities Act of 1933, as amended, 15 U.S.C. Sections 77a et seq., the Modigene Stock was issued to the Debtor in a private placement transaction, pursuant to a subscription agreement entered into between the Debtor and Modigene, dated May 30, 2007. The WaferGen Stock was issued to the Debtor in a private placement transaction, also in compliance with section 4(2) of the Securities Act, pursuant to a subscription agreement entered into between the Debtor and WaferGen, dated May 30, 2007. The Stock has been held exclusively by the Debtor in the United Kingdom since May 30, 2007. STERLING INFOSYSTEMS: Moody's Says Acquisition No Impact on CFR --------------------------------------------------------------- Moody's Investors Service said that Sterling Infosystems, Inc.'s acquisition of Canadian employment screening company Checkwell Solutions Corporation does not immediately impact Sterling's B2 Corporate Family Rating and stable rating outlook. Sterling Infosystems, Inc. provides pre and post-employment verification services including criminal background checks, prior employment, and other screening services. Sterling is privately held with approximately $205 million of pro forma annual revenue. SYLAMORE VALLEY: Files for Chapter 9 in Batesville, Arkansas ------------------------------------------------------------ The Sylamore Valley Water Association Public Facilities Board of Izard County, Arkansas, filed a bare-bones Chapter 9 bankruptcy petition (Barnk. E.D. Ark. Case No. 12-bk-12309) in Batesville, Arkansas, on April 19, 2012. The Debtor, which claims to be a "municipality" eligible to file under Chapter 9, estimated assets and debts of $1 million to $10 million. The Debtor is represented by Stephen L. Gershner, Esq., at Davidson Law Firm, in Little Rock, Arkansas. SYLAMORE VALLEY: Chapter 9 Case Summary --------------------------------------- Debtor: Sylamore Valley Water Association Public Facilities Board of Izard County, Arkansas HC 72, Box 210 Mountain View, AR 72560 Bankruptcy Case No.: 12-12309 Chapter 9 Petition Date: April 19, 2012 Court: U.S. Bankruptcy Court Eastern District of Arkansas (Batesville) Debtor's Counsel: Stephen L. Gershner, Esq. DAVIDSON LAW FIRM P.O. Box 1300 Little Rock, AR 72203-1300 Tel: (501) 374-9977 E-mail: slg@dlf-ar.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company did not file a list of creditors together with its petition. The petition was signed by Phil Wesson, chairman. TAHITIAN INN: Case Summary & 17 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Tahitian Inn, LLC 601 S. Dale Mabry Highway Tampa, FL 33609-3994 Bankruptcy Case No.: 12-05834 Chapter 11 Petition Date: April 18, 2012 Court: U.S. Bankruptcy Court Middle District of Florida (Tampa) Judge: Caryl E. Delano Debtor's Counsel: Scott A. Underwood, Esq. FOWLER WHITE BOGGS P.A. P.O. Box 1438 Tampa, FL 33601 Tel: (813) 228-7411 Fax: (813) 229-8313 E-mail: Scott.Underwood@fowlerwhite.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its 17 largest unsecured creditors is available for free at: http://bankrupt.com/misc/flmb12-05834.pdf The petition was signed by Joseph C. Pupello, president of Dale Mabry Investments, Inc., sole managing member. TARGETED MEDICAL: EFP Rotenberg Raises Going Concern Doubt ---------------------------------------------------------- Targeted Medical Pharma, Inc. filed on April 16, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. EFP Rotenberg, LLP, in Rochester, New York, expressed substantial doubt about Targeted Medical's ability to continue as a going concern. The independent auditors noted that the Company has losses for the year ended Dec. 31, 2011, totaling $4.18 million as well as accumulated deficit amounting to $4.49 million. "Further the Company appears to have inadequate cash and cash equivalents of [$147,000] as of Dec. 31, 2011, to cover projected operating costs for the next 12 months." The Company reported a net loss of $4.17 million on $8.81 million of revenues for 2011, compared with net income of $3.25 million on $7.62 million of revenues for 2010. The Company's balance sheet at Dec. 31, 2011, showed $8.78 million in total assets, $8.57 million in total liabilities, and stockholders' equity of $214,305. A copy of the Form 10-K is available for free at: http://is.gd/1Za1kR Los Angeles, Calif.-based Targeted Medical Pharma, Inc., is a specialty pharmaceutical company that develops and sells a line of patented prescription medical food products through a network of distributors and directly to physicians who dispense medical foods and other pharmaceutical products through their office practices. TIMMINCO LIMITED: To Proceed With April 24 Auction -------------------------------------------------- Timminco Limited and its wholly-owned subsidiary Becancour Silicon Inc. provided an update on the Company's marketing process in respect of the sale of its business and assets, in connection with the proceedings commenced by the Company under the Companies' Creditors Arrangement Act on Jan. 3, 2012 in the Ontario Superior Court of Justice. Timminco received a number of irrevocable and binding Phase II Bids, which were submitted April 19 in accordance with the Bidding Procedures. The Company has determined, in consultation with the Monitor, that there is more than one Qualified Phase II Bid (other than the Stalking Horse Agreement). Accordingly, the Company will proceed with the Auction, which is scheduled to commence at 10:00 am on April 24, 2012, in accordance with the Bidding Procedures. The Bidding Procedures, as well as details of the marketing process and other information about the CCAA Proceedings are available on the Monitor's Web site, at: http://cfcanada.fticonsulting.com/timminco/ The Company has also received notice from the Ontario Securities Commission that a temporary cease trade order has been issued, prohibiting all trading in Timminco common shares, due to the Company's failure to file certain continuous disclosure materials in connection with its 2011 annual financial statements, which have not been prepared. The Company expects that the order will become permanent following a hearing scheduled to be held on April 30, 2012. About Timminco Timminco produces silicon metal for the chemical (silicones), aluminum and electronics/solar industries, through its 51%-owned production partnership with Dow Corning, known as Quebec Silicon. Timminco is also a producer of solar grade silicon, using its proprietary technology for purifying silicon metal, for the solar photovoltaic energy industry, through Timminco Solar, a division of its wholly owned subsidiary Becancour Silicon. Timminco Limited and its wholly-owned subsidiary, Becancour Silicon Inc. on Jan. 2, 2012, commenced proceedings under the Companies' Creditors Arrangement Act. Pursuant to the initial order, FTI Consulting Canada Inc. has been appointed as monitor in the CCAA proceedings. TRAFFIC CONTROL: Files for Chapter 11 to Sell Assets ---------------------------------------------------- Traffic Control and Safety Corporation and six subsidiaries filed Chapter 11 petitions (Bankr. D. Del. Lead Case No. 12-11287) on April 20, 2012. TCSC is the largest independent provider of safety services and products in California and Hawaii. Formed by Marwit Capital Partners II, L.P., in June 2007, TCSC has 430 full-time employees and serves state and local agencies, public works organizations, general contractors, the motion picture industry, and provide services at special events. Greg Grosch, CEO of the Debtors, attributed the Debtors' woes to certain challenges, including the global recession, postponed repairs of existing infrastructure by state and local governments, and a decline in residential and commercial construction. The Debtors also blamed accounting deficiencies and inadequate operational processes at two subsidiary Debtors. TCSC estimated assets of up to $50 million and debts of up to $100 million as of the Chapter 11 filing. As of the Petition Date, Fifth Street Finance Corp. and other lenders are owed (i) $13.5 million under revolving loans and $5 million under a term loan secured by a first priority security interest in the Debtors' assets, and (ii) $36.0 million under second lien notes. The Debtor also owes $13.4 million under unsecured subordinated notes issued to Fifth Street and other lenders. The Debtors received notices of default from the lenders in January 2012. The largest unsecured creditors are listed as Fifth Street ($5.76 million) and Marwit Capital ($4.94 million). First Day Motions The Debtors on the Petition Date filed customary first day motions, including proposals to (i) set rules for payment of professionals, (ii) pay sales and use taxes and employee wages, (iii) use cash collateral, and (iv) obtain $12.5 million of DIP financing, of which $3 million will be available on the interim, (iv) hire bankruptcy professionals. The Debtors also filed a motion to commence a sale process for substantially all assets. Moreover, the Debtors filed a motion to assume its lease agreement with Enterprise Rent-A-Car Company LLC. Enterprise provides specialized vehicles that are necessary for the Debtors' operations. The first day hearing is scheduled for April 23, at 1:00 p.m. Judge Kevin J. Carey is presiding. Bidding Procedures The Debtors have filed a proposal to conduct an auction where Statewide Holdings, Inc., an entity formed by the second lien lenders, would be stalking horse bidder. Under the proposal, absent higher and better offers, the Debtors will sell substantially all assets to the stalking horse bidder in exchange for (i) the assumption of $18.5 million of first lien debt, (ii) payment of all claims entitled to administrative priority under 11 U.S.C. Sec. 503(b)(9) and other claims in the aggregate of $2.5 million and (iii) payment of $500,000 in cash to fund administrative expenses not funded by the DIP loan. The credit bid on account of the junior debt is $20 million and the first lien debt, and the DIP loan obligations to be assumed by the buyer are expected to total $26 million. The stalking horse bidder has also agreed to (i) offer employment to substantially all of the Debtors' employees, (ii) maintain and assume the Debtors' liabilities under collective bargaining agreements, and (iii) assume many of the Debtors' executory contracts and unexpired leases. Assets to be conveyed to the buyer include rights to avoidance or recovery actions under the Bankruptcy Code. The stalking horse bidder will seek reimbursement of up to $500,000 in expenses if the sale agreement is terminated. The Debtors say that other parties may make competitive bids during the 90-day postpetition sale process. Potential bidders are required to submit initial bids in excess of $49.5 million. Under the proposed procedures, initial bids are due July 13, 2012. If qualified bids are received, an auction will be conducted not later than July 17, 2012, at the offices of Young Conaway Stargatt & Taylor, LLP, in Delaware. The proposed rules provide that a successful bidder and a back-up bidder will be selected at the auction. The Debtors are requesting a sale hearing to take place July 26, 2012. Retained Professionals The Debtors have filed applications to employ (i) Latham & Watkins LLP as bankruptcy counsel, (ii) Young Conaway Stargatt & Taylor LLP as Delaware counsel,(ii) Broadway Advisors, LLC as financial advisors, and (iii) Epiq Bankruptcy Solutions LLC as the claims and notice agent. Sec. 341 Meeting Pursuant to Section 341 of the Bankruptcy Code, the U.S. Trustee has scheduled a meeting of creditors to be held at 1:30 p.m. (ET), on May 30, 2012 at J. Caleb Boggs Federal Building, 2nd Floor, Room 2112, Wilmington, Delaware 19801. TRAFFIC CONTROL: Case Summary & 30 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Traffic Control and Safety Corporation 4000 Westerly Place, Suite 100 Newport Beach, CA 92660 Bankruptcy Case No.: 12-11287 Affiliates that simultaneously filed Chapter 11 petitions: Debtor Case No. ------ -------- Safety Systems, Hawaii, Inc. 12-11288 Statewide Safety & Signs, Inc. 12-11289 Traffic Solutions, Inc. 12-11290 American Barricade, Inc. 12-11292 Flash Safety Co., Inc. 12-11293 Toomey Industries, Inc. 12-11294 Chapter 11 Petition Date: April 20, 2012 Court: U.S. Bankruptcy Court District of Delaware (Delaware) Judge: Kevin J. Carey Debtors' Delaware Counsel: Kara Hammond Coyle, Esq. YOUNG CONAWAY STARGATT & TAYLOR LLP Rodney Square 1000 North King Street Wilmington, DE 19801 Tel: (302) 571-6600 E-mail: bankfilings@ycst.com - and ? Michael R. Nestor, Esq. YOUNG CONAWAY STARGATT & TAYLOR LLP The Brandywine Building 1000 West Street, 17th Floor P.O. Box 391 Wilmington, DE 19899 Tel: (302) 571-6600 Fax: (302) 571-1253 E-mail: bankfilings@ycst.com Debtors' Bankruptcy Counsel: Peter Gilhuly, Esq. Ted Austin Dillman, Esq. LATHAM & WATKINS 355 South Grand Avenue Los Angeles, CA 90071-1560 http://www.lw.com/ Tel: (213) 485-1234 Fax: (213) 891-8763 Debtors' Financial Advisors: BROADWAY ADVISORS, LLC Debtors' Claims/Noticing Agent: EPIQ BANKRUPTCY SOLUTIONS, LLC Lead Debtor's Estimated Assets: $10,000,001 to $50,000,000 Lead Debtor's Estimated Debts: $50,000,001 to $100,000,000 The petition was signed by Greg Grosch, chief executive officer. Debtors' Consolidated List of Their 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Fifth Street Capital Lendor $5,760,510 10 Bank Street, 12th Floor White Plains, NY 10606 Marwit Capital Lendor $4,941,024 100 Bayview Circle, Suite 550 Newport Beach, CA 92660 Cuna Mutual Life Insurance Lendor $1,807,693 5910 Mineral Point Road Madison, WI 53705 SPP Capital Partners Lendor $867,691 330 Madison Avenue, 28th Floor New York, NY 10173 Structural & Steel Products Trade $727,676 1320 South University Drive, Suite 701 Fort Worth, TX 76107 Guardian Fall Trade $207,439 Traffic Devices, Inc. Trade $169,228 Barrier Systems Inc. Trade $145,691 Sperian Fall Protect Trade $105,531 Namasco Corporation Trade $67,220 Flint Trading Inc. Trade $57,139 JBC Safety Trade $51,858 Graco Inc. Trade $49,563 3M Co. Szg 1992 Trade $45,019 Spill Control, Inc. Trade $41,063 Solar Tech Products Trade $40,192 Off the Wall Products LLC Trade $32,758 Bent Manufacturing Trade $29,578 Wanco Inc. Trade $21,974 Pexco, LLC ? Tacoma Trade $21,932 M.L. Kishigo Trade $19,811 CDW Direct, LLC Trade $19,033 Protective Industrial Products Trade $18,706 Kenco Corporation Trade $17,958 Fay Investments Landlord $17,472 Tapco Trade $14,810 Zumar Industries, Inc. Trade $14,714 Phoenix Pacific Trade $11,660 Takeform Architectural Graphic Trade $11,639 Leeward Electric Inc. Trade $11,453 TRANS ENERGY: Presented at IPAA Oil and Gas Investment Symposium --------------------------------------------------------------- Trans Energy, Inc., on April 18, 2012, presented at the IPAA Oil and Gas Investment Symposium at the Sheraton New York Hotel and Towers in New York City. Speaking on behalf of Trans Energy were John G. Corp, president, and Stephen P. Lucado, director. The presentation focused on the Company's development efforts in Marcellus Shale, specifically in Marion, Marshall, Tyler and Wetzel counties in Northern West Virginia. The presentation covered the following topics: * General information about Trans Energy, Inc. * Discussion of drilling results * Production history and future drilling plans * Wet gas economics * SEC Reserves * Debt financing - Credit Agreement * Other information A summary of the presentation made at the IPAA Symposium is available for free at http://is.gd/Mtcr2F About Trans Energy St. Mary's, West Virginia-based Trans Energy, Inc. (OTC BB: TENG) -- http://www.transenergyinc.com/-- is an independent energy company engaged in the acquisition, exploration, development, exploitation and production of oil and natural gas. Its operations are presently focused in the State of West Virginia. The Company's balance sheet at Dec. 31, 2011, showed $58.22 million in total assets, $30.78 million in total liabilities and $27.44 million in total stockholders' equity. For 2011, Maloney + Novotny, LLC, in Cleveland, Ohio, noted that the Company has generated significant losses from operations and has a working capital deficit of $18,362,177 at Dec. 31, 2011, which together raises substantial doubt about the Company's ability to continue as a going concern. TRANSALTA CORP: Moody's Reviews '(P)Ba1' Rating for Downgrade ------------------------------------------------------------- Moody's Investors Service placed TransAlta Corporation's ratings under review for possible downgrade. The review follows analysis of the December, 2011 financial statements and consideration of the potential impact that the Sundance 1 & 2 arbitration decision could have on TransAlta's financial metrics. TransAlta's rating outlook was revised to negative from stable in December 2010 on concern that TransAlta's financial profile which was weakened by the 2009 acquisition of Canadian Hydro Developers (KHD) would not strengthen to a level consistent with its Baa2 rating within 12-18 months. Ratings Rationale The review, which affects (TransAlta's) Baa2 senior unsecured, (P)Baa2 senior unsecured shelf and (P)Ba1 preferred shelf ratings, will assess results for the first six months and will focus on the company's cash flow, capital expenditure and dividend expectations for 2012 and 2013. In addition, the review will incorporate the pending Sundance 1 & 2 arbitration decision which is expected around mid-year. Despite a 13% improvement in EBITDA for 2011 that largely reflected a $102 million contribution from TransAlta's energy trading operation, improvement in TransAlta's financial metrics has been modest. CFO pre-WC interest coverage at 4.3x (4.2x in 2010) and CFO pre-WC to Debt of 17.9% (17.0% in 2010) did not meet Moody's expectation of interest coverage in the high 4x range and CFO pre-WC to Debt closer to 25%. For 2012, Moody's expectation is that interest coverage will remain below 4.5x and CFO pre-WC to Debt will improve but will be at the lower end of the 20-25% range. While these expected results will continue the improving trend and be within TransAlta's targeted range, these metrics are more consistent with the Baa3 rating category based on Moody's Unregulated Utilities and Power Companies methodology. Furthermore, improving financial metrics could be compromised with a negative outcome to the Sundance 1 & 2 arbitration. In Dec 2010, TransAlta shut down Sundance coal-fueled units 1 & 2 and declared force majeure as per the power purchase agreement (PPA) that runs to 2017. Subsequently, in Feb 2011 TransAlta issued a notice of termination for destruction, having assessed that it would not be economically viable to repair the facility. The owner of the PPA has disputed TransAlta's determination and, as per the PPA, the dispute will be heard by an arbitration panel with the binding and non-appealable decision expected mid-2012. While Moody's is not in a position to predict the outcome, Moody's estimate is that a negative arbitration ruling for TransAlta could cost the company as much as $500 million and, if financed with debt, would, most likely, negate the expected modest improvement in the company's credit metrics for 2012. Moody's notes that TransAlta continues to have good liquidity. Moody's estimates that TransAlta will generate funds from operations in 2012 of approximately $800-900 million and after dividends and reinvestment under its dividend reinvestment and share purchase program, capital expenditures and debt maturities, the funding requirement will be about $300 million. At December 31, 2011, TransAlta had committed and undrawn availability of about $930 million under credit facilities totaling about $2,040 million. Additionally, in early 2012 TransAlta enhanced its dividend reinvestment program with the expectation that this will significantly increase new capital raised under the program and be a positive factor influencing the company's financial metrics. The principal methodology used in this rating was Unregulated Utilities and Power Companies published in August 2009. TransAlta is a wholesale power generation and energy marketing company headquartered in Calgary and with operations in western Canada (57%), eastern Canada (15%), north-western USA (24%) and Australia (4%). Producing approximately 8,400MW across 75 facilities, TransAlta's generation capacity is predominantly coal (52%) and gas (21%) fueled , with renewable sources aggregating about 26% of generation capacity. TRI-VALLEY CORP: Brown Accountancy Raises Going Concern Doubt ------------------------------------------------------------- Tri-Valley Corporation filed on April 16, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. Brown Accountancy Corporation, in Bakersfield, California, expressed substantial doubt about Tri-Valley's ability to continue as a going concern. The independent auditors noted that Tri- Valley has incurred a net loss from operations for the year ended Dec. 31, 2011, and has a retained earnings deficit as of Dec. 31, 2011. The Company reported a net loss of $11.68 million on $2.62 million of revenues for 2011, compared with a net loss of $8.66 million on $1.86 million of revenues for 2010. The Company's balance sheet at Dec. 31, 2011, showed $18.65 million in total assets, $14.26 million in total liabilities, and stockholders' equity of $4.39 million. A copy of the Form 10-K is available for free at: http://is.gd/95cMyT Bakersfield, Calif.-based Tri-Valley Corporation is a crude oil and natural gas exploitation, development and production company engaged in locating and developing hydrocarbon resources in California. The Company is also engaged in early-stage exploration of precious minerals in Alaska. TRIBUNE CO: Bank Debt Trades at 33% Off in Secondary Market ----------------------------------------------------------- Participations in a syndicated loan under which Tribune Co. is a borrower traded in the secondary market at 67.35 cents-on-the- dollar during the week ended Friday, April 20, 2012, an increase of 2.13 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on May 17, 2014. The loan is one of the biggest gainers and losers among 170 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. 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) TRIMURTI INVESTMENTS: Wants to Use Rental Income in 4 Properties ---------------------------------------------------------------- Trimurti Investments Inc. filed with the Bankruptcy Court several motions seeking authority to use cash collateral and provide adequate protection to its prepetition lenders. The Debtor said it may be forced to halt operations absent cash collateral use. The cash collateral consists of funds on hand and funds to be received from the Debtor's collection of rents from various commercial lease agreements. Trimurti acquired its properties through mortgage financing with a number of institutional lenders before the national real estate crash in late 2008. The Debtor said Fifth Third Bank may assert an interest in the rents received from the tenant at the Debtor's property in Riverwatch, in Jacksonville, Florida. The Debtor estimates it owes Fifth Third $8.2 million as of the petiton date. The Debtor said it will require the use of $62,355 of Fifth Third's collateral to continue maintaining the Riverwatch property for the next four weeks from the petition date. The Debtor expects significant rental income from the Apopka Property at the next payment cycle in May. The Debtor said the property will generate roughly $142,000 in rental income that will cover expenses and help generate a cash reserve over the four-week period. The Debtor said BankFirst may assert an interest in the rents received from the tenant at the Debtor's property in Apopka, Florida. The Debtor estimates it owes BankFIRST $1.930 million as of the petiton date. The Debtor said it will require the use of $1.25 million of BankFIRST's collateral to continue maintaining the Apopka property for the next four weeks from the petition date. The Debtor expects significant rental income from the Apopka Property at the next payment cycle in May. The property will generate roughly $9,300 in rental income that will cover expenses and help generate a cash reserve over the four-week period. According to the Debtor, Commerce National Bank & Trust may assert an interest in the rents received from the tenant at the Debtor's property in Metrowest Blvd., in Orlando, Florida. The Debtor estimates it owes CNBT $764,000 as of the petiton date. The Debtor said it will require the use of $2,925 of CNBT's collateral to continue maintaining the Metrowest property for the next four weeks from the petition date. The Debtor expects significant rental income from the Metrowest Property at the next payment cycle in May. The Metrowest property will generate roughly $6,735 in rental income that will cover expenses and help generate a cash reserve over the four-week period. The Debtor said the Independent Bankers Bank of Florida may assert an interest in the rents received from the tenant at the Debtor's property in Orange Blossom Trail, in Orlando, Florida. The Debtor estimates it owes IBB $4.53 million as of the petiton date. The Debtor said it will require the use of $1,605 of IBB's collateral to continue maintaining the OBT property for the next four weeks from the petition date. The Debtor expects significant rental income from the OBT Property at the next payment cycle in May. The OBT property will generate roughly $31,574 in rental income that will cover expenses and help generate a cash reserve over the four-week period. As a result of the 2008 crisis, nearly all of the Debtor's properties are now underwater. As the Debtor's real estate values have dropped, so have its rental rates. Furthermore, the Debtor has been unable to find suitable tenants for its vacant properties that would enable the Debtor to service the debt associated with the properties and otherwise enable the business to cash flow. The rents the Debtor receives from current tenants barely cover, or in some cases do not cover, required debt service payments for all the Debtor's properties. About Trimurti Investments Orlando, Florida-based Trimurti Investments Inc. acquires, develops and holds commercial real property located in Jacksonville, Orlando, and Apopka. Trimurti leases its properties out to long-term commercial tenants. Trimurti has acquired and currently holds nine commercial properties, five of which are currently leased to long-term tenants. Pragatiben Patel, who resides in the United Kingdom, owns 100% of Trimurti Investments. Trimurti Investments filed for Chapter 11 bankruptcy (Bankr. M.D. Fla. Case No. 12-05071) on April 17, 2012. Justin M. Luna, Esq., and Christopher R. Thompson, Esq., at Latham, Shuker, Eden & Beaudine, LLP. In its petition, the Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Suketu Patel, vice president. TW & COMPANY: Security Guard Provider Files for Chapter 11 ---------------------------------------------------------- TW & Co., a provider of security-guard services for the federal government, filed a Chapter 11 petition (Bankr. D. Md. Case No. 12-17363) on April 18 in Greenbelt, Maryland. Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the company was forced to file for Chapter 11 to secure $1 million needed to avoid missing payroll due April 20. Chenega Integrated Systems LLC, a subcontractor, is willing to provide $1 million in financing to cover the April 20 payroll, according to court papers. Based in Lanham, Maryland, TW said that customers include the U.S. Army and Air Force, the Department of Homeland Security and the General Services Administration. The Debtor disclosed assets of $7.4 million and debt of $13 million. Other than a $750,000 tax lien in favor of the Internal Revenue Service, there is no secured debt, TW said in a court filing. TW & COMPANY: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: TW & Company, Inc. 4355 Nicole Drive Lanham, MD 20706 Bankruptcy Case No.: 12-17363 Chapter 11 Petition Date: April 18, 2012 Court: U.S. Bankruptcy Court District of Maryland (Greenbelt) Judge: Wendelin I. Lipp About the Debtor: TW is a Lanham, Maryland-based provider of security-guard services for the federal government. Debtor's Counsel: James Greenan, Esq. MCNAMEE, HOSEA, ET. AL. 6411 Ivy Lane, Suite 200 Greenbelt, MD 20770 Tel: (301) 441-2420 E-mail: jgreenan@mhlawyers.com Scheduled Assets: $7,368,802 Scheduled Liabilities: $12,985,324 A copy of the Company's list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/mdb12-17363.pdf The petition was signed by Tanya Walker, president. TXU CORP: Bank Debt Trades at 47% Off in Secondary Market --------------------------------------------------------- Participations in a syndicated loan under which TXU Corp., now known as Energy Future Holdings Corp., is a borrower traded in the secondary market at 53.08 cents-on-the-dollar during the week ended Friday, April 20, 2012, a drop of 0.67 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 450 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 10, 2017, and carries Moody's B2 rating and Standard & Poor's CCC rating. The loan is one of the biggest gainers and losers among 170 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. 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. 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. Energy Future had 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. * * * Energy Future carries 'Caa2' corporate family rating and 'Caa3' probability of default rating from Moody's Investors Services. Moody affirmed the ratings at the end of January 2012 and said that EFH's Caa2 CFR and Caa3 PDR reflect a financially distressed company with limited flexibility. EFH's capital structure is complex and, in our opinion, untenable which calls into question the sustainability of the business model and expected duration of the liquidity reserves. Moody's in January changed the rating outlook for Energy Future to negative from stable. The change in rating outlook to negative from stable reflects a sustained period of low natural gas prices which will depress EFH's cash flow generating prospects and could result in further large goodwill impairments. Moody's also sees declining volumes and an increase in operating costs and capital investment needs. These higher costs and investments are influenced, in part, by increased regulatory requirements that apply primarily to EFH's coal generation assets. TXU CORP: Bank Debt Trades at 43% Off in Secondary Market --------------------------------------------------------- Participations in a syndicated loan under which TXU Corp., nowknown as Energy Future Holdings Corp., is a borrower traded in the secondary market at 56.61 cents-on-the-dollar during the week ended Friday, April 20, 2012, a drop of 2.46 percentage points from the previous week according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. The Company pays 350 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 10, 2014, and carries Standard & Poor's CCC rating. The loan is one of the biggest gainers and losers among 170 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. 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. 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. Energy Future had 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. * * * Energy Future carries 'Caa2' corporate family rating and 'Caa3' probability of default rating from Moody's Investors Services. Moody affirmed the ratings at the end of January 2012 and said that EFH's Caa2 CFR and Caa3 PDR reflect a financially distressed company with limited flexibility. EFH's capital structure is complex and, in our opinion, untenable which calls into question the sustainability of the business model and expected duration of the liquidity reserves. Moody's in January changed the rating outlook for Energy Future to negative from stable. The change in rating outlook to negative from stable reflects a sustained period of low natural gas prices which will depress EFH's cash flow generating prospects and could result in further large goodwill impairments. Moody's also sees declining volumes and an increase in operating costs and capital investment needs. These higher costs and investments are influenced, in part, by increased regulatory requirements that apply primarily to EFH's coal generation assets. UNITED BANCSHARES: McGladrey & Pullen Raises Going Concern Doubt ---------------------------------------------------------------- United Bancshares, Inc., filed on April 16, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. McGladrey & Pullen, LLP, in Blue Bell, Pennsylvania, expressed substantial doubt about United Bancshares' ability to continue as a going concern. The independent auditors noted that the Company's and the Bank's regulatory capital amounts and ratios are below the required levels stipulated with Consent Orders between the Company and its regulators. "Failure to meet the capital requirements exposes the Company to regulatory sanctions that may include restrictions on operations and growth, mandatory asset disposition, and seizure of the Bank." The Company reported a net loss of $1.03 million on $3.07 million of net interest income (before provision for loan losses) for 2011, compared with a net loss of $1.23 million on $3.09 million of net interest income (before provision for loan losses) for 2010. The Company's balance sheet at Dec. 31, 2011, showed $77.02 million in total assets, $71.76 million in total liabilities, and stockholders' equity of $5.26 million. A copy of the Form 10-K is available for free at: http://is.gd/hMa3Sq Located in Philadelphia, Pennsylvania, United Bancshares, Inc., is an African American controlled and managed bank holding company for United Bank of Philadelphia, a commercial bank chartered in 1992 by the Commonwealth of Pennsylvania, Department of Banking. UNIVERSITY GENERAL: Moss Krusick Raises Going Concern Doubt ----------------------------------------------------------- University General Health System, Inc., filed on April 16, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. Moss, Krusick & Associates, LLC, in Winter Park, Florida, expressed substantial doubt about University General's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses and negative operating cash flows, and has negative working capital. The Company reported a net loss of $2.38 million on $72.51 million of revenues for 2011, compared with a net loss of $1.71 million on $56.13 million of revenues for 2010. The Company's balance sheet at Dec. 31, 2011, showed $114.67 million in total assets, $115.08 million in total liabilities, and a stockholders' deficit of $407,469. A copy of the Form 10-K is available for free at: http://is.gd/4tPtmr University General Health System, Inc., located in Houston, Texas, is a diversified, integrated multi-specialty health care provider that delivers concierge physician- and patient-oriented services. UGHS currently operateS one hospital and two ambulatory surgical centers in the Houston area. It also owns a revenue management company, a hospitality service provider and facility management company, three senior living facilities and manages six senior living facilities. US FIDELIS: Settles WARN Suit for $1.4 Million ---------------------------------------------- Jamie Santo at Bankruptcy Law360 reports that a Missouri bankruptcy court on April 18 reportedly approved a proposed settlement between now-defunct U.S. Fidelis and the more than 500 former employees who joined in a WARN Act class action after being let go in 2010 by the vehicle service contract provider. The class action brought by plaintiff Sharon Szymankski claims employees at the company's facility in Wentzville, Mo., were not given the appropriate warning required by the Worker Adjustment and Retraining Notification Act of 1988 before being laid off. About US Fidelis Wentzville, Missouri-based US Fidelis, Inc., was a marketer of vehicle service contracts developed by independent and unrelated companies. It stopped writing new business in December 2009. The Company filed for Chapter 11 bankruptcy protection (Bankr. E.D. Mo. Case No. 10-41902) on March 1, 2010. Brian T. Fenimore, Esq., Crystanna V. Cox, Esq., James Moloney, Esq, at Lathrop & Gage L.C., in Kansas City, Mo.; and Laura Toledo, Esq., at Lathrop & Gage, in Clayton, Mo., assist the Debtor in its restructuring effort. According to the schedules, the Company had assets of $74,386,836, and total debts of $25,770,655 as of the petition date. Allison E. Graves, Esq., Brian Wade Hockett, Esq., and David A. Warfield, Esq., at Thompson Coburn LLP, in St. Louis, Mo., represent the Official Unsecured Creditors Committee. USEC INC: Hires Consultants to Review Organizational Structure -------------------------------------------------------------- In light of the challenges and transitions facing USEC Inc.'s business, the Company has initiated an internal review of its organizational structure and engaged a management consulting firm to support this review. The Company expects this review will result in a significantly smaller workforce over time. On April 2, 2012, the Company announced the elimination of two senior officer positions and additional actions to align the organization with the current business are expected during 2012. The Company believes that maintaining the skills, knowledge and experience of the current senior management team and other key employees will be crucial as the Company faces significant business challenges and transitions in 2012. As a result, on April 13, 2012, the Compensation Committee of the Board of Directors of USEC approved changes to the executive compensation program for 2012 for the Company's named executive officers identified in its proxy statemen and other executives. These changes are designed to keep management focused on critical short- term goals and to provide for retention of key employees. The changes are also designed to maintain a similar level of total compensation opportunity for these executives as in 2011 and not to increase their total compensation opportunity. The changes are: * Revised the annual incentive program to provide that annual incentive performance goals for 2012 will be comprised entirely of individual performance measures due to the difficulty in establishing corporate quantitative goals for 2012; * Terminated the current three-year performance-based cash incentive program under the Company's 2009 Equity Incentive Plan and replaced it with a performance-based quarterly cash incentive program with increased retentive features for the Company's named executive officers and certain other key employees; and * Reduced the target value of the restricted stock portion of the long-term incentive program under the Company's 2009 Equity Incentive Plan and shifted that value to the quarterly cash incentive to make the annualized value of the quarterly cash incentive equal in value to the target annual cash incentive. A copy of the Form 8-K is available for free at: http://is.gd/3QX8KB About USEC Inc. Headquartered in Bethesda, Maryland, USEC Inc. (NYSE: USU) -- http://www.usec.com/-- supplies enriched uranium fuel for commercial nuclear power plants. The Company reported a net loss of $540.70 million in 2011, compared with net income of $7.50 million in 2010. The Company's balance sheet at Dec. 31, 2011, showed $3.54 billion in total assets, $2.79 billion in total liabilities and $752.40 million in total stockholders' equity. * * * USEC Inc. carries 'Caa1' corporate and probability of default ratings, with "developing" outlook, from Moody's, and 'CCC+' long term foreign issuer credit rating and 'CCC-' long term local issuer credit rating, with outlook "developing", from Standard & Poor's. In May 2010, S&P said that its rating and outlook on USEC Inc. are not affected by the announcement that Toshiba Corp. and Babcock & Wilcox Investment Co., an affiliate of The Babcock & Wilcox Co., have signed a definitive investment agreement for $200 million with USEC. VHGI HOLDINGS: Pritchett Siler Raises Going Concern Doubt --------------------------------------------------------- VHGI Holdings, Inc., filed on April 16, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. Pritchett, Siler & Hardy, P.C., in Salt Lake City, Utah, expressed substantial doubt about VHGI Holdings' ability to continue as a going concern. The independent auditors noted that the Company has incurred substantial losses and has a working capital deficit. The Company reported a net loss of $5.43 million on $499,600 of revenues for 2011, compared with a net loss of $1.67 million on $482,300 of revenues for 2010. The Company's balance sheet at Dec. 31, 2011, showed $7.22 million in total assets, $9.12 million in total liabilities, and a stockholders' deficit of $1.90 million. A copy of the Form 10-K is available for free at: http://is.gd/vt4jZJ Fort Worth, Tex.-based VHGI Holdings, Inc., is a holding company with revenue streams from the following business segments: (a) precious metals (b) oil and gas (c) coal and (d) medical technology. VIRGINIA TOOLS: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Virginia Tools & Home Hardware, Inc. dba Fischer Hardware 6129 Backlick Road Springfield, VA 22150 FAIRFAX-VA Bankruptcy Case No.: 12-12478 Chapter 11 Petition Date: April 18, 2012 Court: U.S. Bankruptcy Court Eastern District of Virginia (Alexandria) Judge: Robert G. Mayer Debtor's Counsel: Derek K. Prosser, Esq. TYLER, BARTL, RAMSDELL & COUNTS, PLC 300 N. Washington Street, Suite 202 Alexandria, VA 22314 Tel: (703) 842-0538 E-mail: dprosser@tbrclaw.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/vaeb12-12478.pdf The petition was signed by Roy F. Ewers, owner. VOICE ASSIST: Mantyla McReynolds Raises Going Concern Doubt ----------------------------------------------------------- Voice Assist, Inc., filed on April 16, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. Mantyla McReynolds LLC, in Salt Lake City, Utah, expressed substantial doubt about Voice Assist's ability to continue as a going concern. The independent auditors noted that the Company has working capital deficits and has incurred losses from operations and negative operating cash flows during the years ended Dec. 31, 2011, and 2010. The Company reported a net loss of $10.24 million on $872,010 of revenues for 2011, compared with a net loss of $1.30 million on $1.26 million of revenues for 2010. The Company's balance sheet at Dec. 31, 2011, showed $1.09 million in total assets, $2.92 million in total liabilities, and a stockholders' deficit of $1.83 million. A copy of the Form 10-K is available for free at: http://is.gd/xQcFki Lake Forest, Calif.-based Voice Assist, Inc., operates a cloud- based speech recognition platform that supports speech recognition based enterprise services such as Customer Relationship Management (CRM), field force automation, as well as direct-to-enterprise services such as virtual assistants that unify communications and direct-to-consumer "safe driving" services that allow SMS, email, and social media messaging through a single personal phone number. WEST CORP: Reports $34 Million Net Income in First Quarter ---------------------------------------------------------- West Corporation reported net income of $34.04 million on $639.06 million of revenue for the three months ended March 31, 2012, compared with net income of $34.58 million on $610.81 million of revenue for the same period a year ago. The Company's balance sheet at March 31, 2012, showed $3.36 billion in total assets, $4.22 billion in total liabilities and a $853.52 million stockholders' deficit. At March 31, 2012, the Company had cash and cash equivalents totaling $97.9 million and working capital of $225.7 million. A copy of the press release is available for free at: http://is.gd/SzTDaB About West Corporation Founded in 1986 and headquartered in Omaha, Nebraska, West Corporation -- http://www.west.com/-- provides outsourced communication solutions to many of the world's largest companies, organizations and government agencies. West Corporation has a team of 41,000 employees based in North America, Europe and Asia. Bankruptcy Warning In its annual report for the year ended Dec. 31, 2011, the Company said that if it cannot make scheduled payments on its debt, it will be in default and, as a result: -- its debt holders could declare all outstanding principal and interest to be due and payable; -- the lenders under its senior secured credit facilities could terminate their commitments to lend the Company money and foreclose against the assets securing the Company's borrowings; and -- it could be forced into bankruptcy or liquidation. As of Dec. 31, 2011, the Company had a negative net worth of $896.4 million. The Company's negative net worth primarily resulted from the incurrence of indebtedness to finance its recapitalization in 2006. * * * West Corp. carries a 'B2' corporate rating from Moody's and 'B+' corporate rating from Standard & Poor's. Moody's Investors Service upgraded the ratings on West Corporation's existing senior secured term loan to Ba3 from B1 and the rating on $650 million of existing senior notes due 2014 to B3 from Caa1 upon the closing of its recent refinancing transactions. Concurrently, Moody's affirmed all other credit ratings including the B2 Corporate Family Rating and B2 Probability of Default Rating. The rating outlook is stable. Standard & Poor's Ratings Services assigned Omaha, Neb.-based business process outsourcer West Corp.'s proposed $650 million senior unsecured notes due 2019 its 'B' issue-level rating (one notch lower than the 'B+' corporate credit rating on the company). The recovery rating on this debt is '5', indicating S&P's expectation of modest (10% to 30%) recovery in the event of a payment default. The company will use proceeds from the proposed transaction and some cash on the balance sheet to redeem its $650 million 9.5% senior notes due 2014. WILLIAM LYON: Has 321 New Home Orders for First Quarter ------------------------------------------------------- William Lyon Homes announced preliminary new home orders, closings and backlog information for the three months ended March 31, 2012. New home orders for the three months ended March 31, 2012, were 321, an increase of 89% as compared to 170 for the three months ended March 31, 2011. This is the first quarter the Company reported over 300 orders since the 2nd quarter of 2008. Each of the Company's divisions reported an increase over the previous year, with Southern California up 20%, Northern California up 12%, Arizona up 297% and Nevada up 186%. The Company's cancellation rate for the three months ended March 31, 2012 was 9%, compared to 15% for the same period a year ago. The Company's number of new home orders per average sales location increased to 16.9 for the three months ended March 31, 2012, as compared to 9.0 for the three months end March 31, 2011. Chief Executive Officer General William Lyon commented, "With the recapitalization now complete we have entered the spring selling season with great momentum and are focused on executing our business plan and delivering value to our homeowners, business partners, and shareholders. The spring selling season is off to a great start and I would like to thank all of our employees for their tireless effort in helping position our company to remain a leader in the homebuilding industry for years to come." President and Chief Operating Officer Bill H. Lyon commented, "We finalized the reorganization with a cash balance 35% higher than the disclosure statement projection, due to our efficient use of cash and ability to continue to deliver homes to our customers during the reorganization. This provides us with the liquidity to continue to reinvest in new land and to profitably grow our business." The average number of sales locations for the three months ended March 31, 2012, and 2011 remained consistent at 19 locations. "Our sales activity has significantly exceeded our business plan. As a result of the strong activity, we are reducing incentives, selectively increasing prices, and we now expect to open new communities sooner than initially expected. Furthermore, the new capital invested in the Company through the recapitalization has greatly strengthened the Company's balance sheet and put us in a position to profitably grow our business and increase community count," said Executive Vice President Matthew R. Zaist. The number of homes closed for the three months ended March 31, 2012, increased 15% to 128 homes from 111 homes for the three months ended March 31, 2011. Chief Financial Officer Colin T. Severn commented, "Our closings exceeded the disclosure statement projection for the same period by over 30% and our orders by over 45%. In addition, we are pleased that we were able to exceed our projected pricing on these closings by over 30%. We are in the process of engaging a third party consulting firm to finalize our fresh start accounting in conjunction with the reorganization and look forward to providing more detailed financial results when that process is complete." The Company's backlog of homes sold but not closed was 332 at March 31, 2012, an increase of 132% as compared to 143 at March 31, 2011, and an increase of 139% as compared to 139 at Dec. 31, 2011. The Company's dollar amount of backlog of homes sold but not closed as of March 31, 2012, was $79.4 million, an increase of 46% from $54.3 million as of March 31, 2011, and an increase of 171% as compared to $29.3 at Dec. 31, 2011. A copy of the press release is available for free at: http://is.gd/QTY9Nz About William Lyon Homes Based in Newport Beach, California, William Lyon Homes and its subsidiaries -- http://www.lyonhomes.com/-- are primarily engaged in designing, constructing and selling single family detached and attached homes in California, Arizona and Nevada. William Lyon Homes and its affiliates commenced a prepackaged Chapter 11 reorganization (Bankr. D. Del. Lead Case No. 11-14019) on Dec. 19, 2011. William Lyon had been pursuing an out-of-court restructuring since January. The reorganization plan, announced in November, will reduce debt on borrowed money from $510 million to $328 million. The Debtors intend to obtain approval of the bankruptcy plan at a hearing beginning Feb. 10, 2012. The Chapter 11 plan already has been accepted by 97% in amount and 93% in number of senior unsecured notes. The Plan exchanges the notes for equity and generates $85 million in new cash. Holders owed $300 million on senior unsecured notes are to exchange the debt for $75 million in new secured notes plus 28.5% of the common equity. The Lyon family will invest $25 million in return for 20% of the common stock and warrants for another 9.1%. Senior secured lenders led by ColFin WLH Funding LLC, an affiliate of real-estate finance and investment company Colony Financial Inc., would receive a new $235 million 10.25% three-year secured note for existing secured claim of at least $206 million in principal. There will be a rights offering to buy $10 million in common stock and $50 million in convertible preferred stock, representing 51.5% of the new equity. A noteholder has agreed to buy any of the offering that isn't purchased. The company didn't make a $7.5 million interest payment payable Oct. 1, 2011, on $138.8 million in 10.75% senior notes due 2013. William Lyon expects to pay its remaining creditors in full, including vendors and other general unsecured creditors. Judge Christopher S. Sontchi presides over the case. Lawyers at Pachulski Stang Ziehl & Jones LLP serve as the Debtors' counsel. Lawyers at Irell & Manella LLP serve as their special counsel. Alvarez & Marsal North America LLC serves as the Debtors' financial advisors. Kurtzman Carson Consultants, LLC, serves as the Debtors' claims and notice agent. The petition says assets are $593.5 million with debt totaling $606.6 million as of Sept. 30, 2011. Counsel to the Backstop Investors are Matthew K. Kelsey, Esq., and J. Eric Wise, Esq., at Gibson, Dunn & Crutcher LLP. Counsel to the Ad Hoc Noteholders Group are Mark Shinderman, Esq., and Neil Wertlieb, Esq., at Milbank, Tweed, Hadley & McCloy LLP. Delaware Counsel to the Ad Hoc Noteholders Group is Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell LLP. The Prepetition Agent and the Prepetition Secured Lenders are represented by David P. Simonds, Esq., at Akin Gump Strauss Hauer & Feld LLP and David Stratton, Esq., at Pepper Hamilton LLP. The Prepetition Lenders also have hired FTI Consulting Inc. as advisors. No creditors committee has yet been appointed by the Office of the U.S. Trustee. William Lyon Homes emerged from its voluntary pre-packaged chapter 11 reorganization with the effectiveness of its plan of reorganization having occurred on February 25. The U.S. Bankruptcy Court confirmed the Company's pre-packaged plan of reorganization on February 10th, just 53 days after its plan and related petitions were filed. As reported by the TCR on April 9, 2012, Standard & Poor's Ratings Services withdrew its 'D' corporate credit rating on William Lyon Homes. "We withdrew our ratings on William Lyon and its rated debt after the company emerged from bankruptcy and exchanged previously rated securities for new, unrated secured notes and equity," said credit analyst Matthew Lynam. ZHONG WEN: Bongiovanni & Associates Raises Going Concern Doubt -------------------------------------------------------------- Zhong Wen International Holding Co, Ltd., filed on April 16, 2012, its annual report on Form 10-K for the fiscal year ended Dec. 31, 2011. Bongiovanni & Associates, CPA's, in Cornelius, North Carolina, expressed substantial doubt about Zhong Wen's ability to continue as a going concern. The independent auditors noted that the Company has suffered losses from operations and has a net capital deficiency as of Dec. 31, 2011. The Company reported a net loss of $27,200 on $314,000 of revenue for 2011, compared with a net loss of $130,000 on $54,200 of revenue for 2010. The Company's balance sheet at Dec. 31, 2011, showed $1.42 million in total assets, $1.54 million in total liabilities, and a stockholders' deficit of $117,500. A copy of the Form 10-K is available for free at: http://is.gd/2S9Kjq Located in Qingzhou, Shandong, People's Republic of China, Zhong Wen International Holding Co., Ltd., is in the business of equipment products procurement for the construction industry, and project consultation for construction projects. * Posner Discusses Psuedo-Conflict Among Circuit Courts ------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that U.S. Circuit Judge Richard A. Posner in Chicago laid out a judicial philosophy about pseudo-conflicts among the circuit courts in a case with facts seldom seen in bankruptcy court. According to the report, the case involved a man given a life sentence for almost killing his ex-wife. Judge Posner began the opinion by explaining how "after beating her with a baseball bat he sealed her in a garbage can filled with snow and left it (and therefore her) in an unheated storage facility, causing severe frost-bite." After the man filed for bankruptcy, a $3.4 million judgment from state court was ruled not discharged in his bankruptcy. The imprisoned former husband appealed and lost in Judge Posner's April 18 opinion. Mr. Rochelle relates that Judge Posner reflected on how the federal circuit courts "are all over the lot in defining" what constitutes debt for a willful and malicious injury not discharged under Section 523(a)(6) of the Bankruptcy Code. Surveying the varying verbal formulations from the appeals courts, Judge Posner said it was a "pseudo-conflict among the circuits" where "different legal definitions of the same statutory language probably don't generate different outcomes." "Each circuit seems content to go its own way, without attempting to reconcile its verbal formulas with those of the other circuits," Judge Posner said, according to the report. Synthesizing the varying rules, Judge Posner said that "all courts would agree" that a willful and malicious injury "is one that the injurer inflicted knowing he had no legal justification and either desiring to inflict the injury or knowing it was highly likely to result." Judge Posner, the report continues, ruled that the entire state- court judgment remained valid regardless of bankruptcy, including awards for punitive damages and loss of consortium because they were "derivative from the injury that the debtor committed intentionally." He ended the opinion reflecting on how bankruptcy is intended to give a fresh start to an honest debtor. "An honest but unfortunate debtor Larsen is not," Judge Posner said. The case is Nicolai v. Larsen, 11-1256, U.S. Court of Appeals for the Seventh Circuit (Chicago). * Sheriff Isn't Required to Check Bankruptcy Filings ---------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that U.S. District Judge Virginia M. Kendall in Chicago ruled on April 16 that if a sheriff evicts someone who filed bankruptcy, the sheriff is protected from a lawsuit for damages by the state's sovereign immunity under the 11th Amendment to the Constitution. The case is Giljen v. Dart, 11-5581, U.S. District Court, Northern District of Illinois (Chicago). * New Jersey Bank Hikes Year's Failures to 17 --------------------------------------------- Fort Lee Federal Savings Bank, FSB, Fort Lee, New Jersey, was closed Friday by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Alma Bank, Astoria, New York, to assume all of the deposits of Fort Lee Federal Savings Bank, FSB. As of December 31, 2011, Fort Lee Federal Savings Bank, FSB had approximately $51.9 million in total assets and $50.7 million in total deposits. Alma Bank will pay the FDIC a premium of 1.85 percent to assume all of the deposits of Fort Lee Federal Savings Bank, FSB. In addition to assuming all of the deposits of the failed bank, Alma Bank agreed to purchase approximately $15.7 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $14.0 million. Compared to other alternatives, Alma Bank's acquisition was the least costly resolution for the FDIC's DIF. Fort Lee Federal Savings Bank, FSB is the seventeenth FDIC-insured institution to fail in the nation this year, and the first in New Jersey. The last FDIC-insured institution closed in the state was First State Bank, Cranford, on October 14, 2011. 2012 Failed Banks List The FDIC was appointed as receiver for the closed banks. To protect the depositors, the FDIC entered into a purchase and assumption agreement with various banks that agreed to assume the deposits of most of the closed banks. The FDIC also entered into loss-share transactions on assets bought by the banks. For this year, the failed banks are: Loss-Share Transaction Party FDIC Cost Assets of Bank That Assumed to Insurance Closed Bank Deposits & Bought Fund Closed Bank (millions) Certain Assets (millions) ----------- ----------- ----------------- ------------ Fort Lee Federal $51.9 Alma Bank $14.0 Fidelity Bank $818.2 The Huntington Nat'l $92.8 Covenant Bank $95.7 Stearns Bank, N.A. $31.5 Premier Bank $268.7 Int'l Bank of Chi. $64.1 Covenant Bank $95.7 Stearns Bank, N.A. $31.5 New City Bank $71.2 [No Acquirer] $17.4 Global Commerce Bank $143.7 Metro City Bank $17.9 Home Savings of Amer. $434.1 [No Acquirer] $38.8 Central Bank of Georgia $278.9 Ameris Bank $67.5 Charter National Bank $93.9 Barrington Bank $17.4 SCB Bank $182.6 First Merchants Bank $33.9 Tennessee Commerce $1,185.0 Republic Bank & Trust $416.8 First Guaranty Bank $377.9 CenterState Bank $82.0 BankEast $272.6 U.S. Bank N.A. $75.6 Patriot Bank $111.3 First Resource Bank $32.6 The First State Bank $416.8 Hamilton State Bank $416.8 Central Florida $79.1 CenterState Bank $24.4 American Eagle $19.6 Capital Bank, N.A. $3.2 In 2011 there were 92 failed banks, compared with 157 in 2010, 140 in 2009 and just 25 for 2008. A complete list of banks that failed since 2000 is available at: http://www.fdic.gov/bank/individual/failed/banklist.html 813 Banks in Problem List The FDIC's Quarterly Banking Profile for Dec. 31, 2011, says that The number of institutions on the FDIC's "Problem List" declined from 844 to 813 during the quarter, and total assets of "problem" institutions fell from $339 billion to $319.4 billion. The number of institutions in the "problem list" has decreased for the third consecutive quarter. The FDIC defines "problem" institutions as those with financial, operational or managerial weaknesses that threaten their viability. The deposit insurance fund, which protects customer holdings up to $250,000 per account in the event of a failure, saw its balance increase in the fourth quarter to $9.2 billion (unaudited) from $7.8 billion in the third quarter, the eighth consecutive quarterly increase. Problem Institutions Failed Institutions -------------------- ------------------- Year Number Assets (Mil) Number Assets (Mil) ---- ------ ------------ ------ ------------ 2011 813 $319,432 92 $34,923 2010 884 $390,017 157 $92,085 2009 702 $402,800 140 $169,700 2008 252 $159,405 25 $371,945 2007 76 $22,189 3 $2,615 2006 50 $8,265 0 $0 2005 52 $6,607 0 $0 2004 80 $28,250 4 $170 Federal regulators assign a composite rating to each financial institution, based upon an evaluation of financial and operational criteria. The rating is based on a scale of 1 to 5 in ascending order of supervisory concern. "Problem" institutions are those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. Depending upon the degree of risk and supervisory concern, they are rated either a "4" or "5." The number and assets of "problem" institutions are based on FDIC composite ratings. Prior to March 31, 2008, for institutions whose primary federal regulator was the OTS, the OTS composite rating was used. * S&P Global Default Tally at 28 as of April 19 ----------------------------------------------- Two rating actions pushed Standard & Poor's 2012 global corporate default tally to 28 issuers, said an article published April 19 by Standard & Poor's Global Fixed Income Research, titled "Global Corporate Default Update (April 12 - 18, 2012)." On April 12, 2012, Standard & Poor's Ratings Services lowered its ratings on Dallas-based Reddy Ice Holdings Inc. to 'D', after the company announced that it has voluntarily filed for relief under Chapter 11 of the U.S. Bankruptcy Code and has secured commitments for $70 million in debtor-in-possession financing from Macquarie Bank Ltd. On April 18, 2012, Standard & Poor's lowered its long- and short- term issuer credit ratings on Residential Capital LLC (ResCap) to 'SD' (selective default). ResCap, the troubled mortgage subsidiary of Ally Financial Inc., failed to make a scheduled interest payment on its senior unsecured notes, which will mature in April 2013, opting instead to use the 30-day grace period that the debt's indenture allows. Of the total defaulters this year, 18 were based in the U.S., five in the emerging markets, three in Europe, and two in the other developed region (Australia, Canada, Japan, and New Zealand). In comparison, last year, only 11 issuers--six based in the U.S., two in New Zealand, one in Europe, one in Canada, and one in the emerging markets--defaulted during the same period (through April 18). "So far this year, missed payments accounted for 11 defaults, bankruptcy filings accounted for six, distressed exchanges were responsible for four, and four defaulters were confidential," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research. "Of the remaining defaults, one was the result of a notice of acceleration by the issuer's lender, one was due to the company's placement under regulatory supervision, and the last was due to a judicial organization filing." * Moody's Says E&S Insurers Challenged by 2011 Catastrophe Losses ----------------------------------------------------------------- Pure-play excess and surplus lines (E&S) insurers' product innovation, underwriting discipline and risk-management practices have helped them navigate the property and casualty cycle while maintaining good profitability and strong balance sheets, Moody's Investors Service says in a new report. Nevertheless, the sector faces challenges from high catastrophe exposures and low interest rates. "Collectively E&S companies reported an underwriting loss in 2011 due to the high level of catastrophes," says Moody's analyst and author of the report Enrico Leo in reference to last year's earthquakes, tsunami, floods and severe storms. In light of their exposure and risk management prioritization, E&S insurers have responded by raising rates, tightening underwriting standards, purchasing additional reinsurance, and in some cases reducing line sizes. But E&S pricing is stabilizing and beginning to improve in some business lines, Leo says, particularly for catastrophe-exposed property risks. Companies' limited appetite for retaining risks at inadequate rates and strong underwriting discipline have served them well over time, he says. "As pricing gains traction and standard carriers shed poorly performing accounts, E&S insurers' revenue and profitability metrics will improve, notwithstanding significant competition, low interest rates and still-difficult economic conditions." Given current challenges, E&S insurers are expected to continue to generate top-line growth through product innovation and development, with new products launched over the past few years including cyber liability coverage, environmental liability and renewable energy liability. At the same time, low stock valuations will limit M&A activity. Business combinations in the wholesale broker distribution channel are expected to affect E&S companies' revenue, as the leading wholesalers can provide meaningful business volumes. Expense ratios are generally higher for E&S carriers than they are for standard property and casualty insurers in part because E&S carriers use wholesale distribution channels, though their loss ratios have tended to be lower over time. New regulations in some states are negatively affecting E&S insurers, however. In the past two years fMoody's states have passed laws that define construction defects as commercial general liabilities. "Such laws affect the freedom of policy form traditionally enjoyed by E&S companies," Mr. Leo says, "and the recent change in law could open up existing policies to potentially larger claims." The report is titled "U.S. Excess and Surplus Lines Insurance: Sector Profile". * Moody's Says Pharma Sector on Neg. Outlook Over Patent Cliffs --------------------------------------------------------------- The outlook for the global pharmaceutical industry remains negative as any potential revenue over the next 12-18 months is likely to be offset by losses from the upcoming expiries of major patents (known as 'the patent cliff'), according to a new industry report by Moody's Investors Service. Moody's expects a number of rated players' earnings to shrink as newly launched drugs and other growth areas (such as consumer healthcare and generics) will not be sufficient to offset the financial losses from patent expiries. The rating agency anticipates that Eli Lilly and Company (A2 stable), Bristol-Myers Squibb (A2 stable) and AstraZeneca (A1 stable) will see the largest decline in revenues and profits because these companies have the steepest patent cliffs and are expected to only mitigate the related impact to a limited extent. The new report is entitled "Global Pharmaceutical Industry: Outlook remains negative as patent cliff pressures are set to peak in 2012 ". As a result of the upcoming patent cliff, Moody's projects that the aggregate EBITDA of rated branded pharmaceutical companies will decline by around 2%-3% in 2012. The rating agency expects the negative pressure on earnings to bottom out in 2012 and that the industry will return to positive earnings' growth in 2013. AstraZeneca, Novartis AG (Aa2 negative) and Takeda Pharmaceutical Company Limited (Aa3 stable) have stepped up cost-cutting initiatives in response to the approaching patent cliff or to extract synergies following an M&A transaction notes Moody's. Moodys's also expects healthcare reforms globally to result in a negative sales impact in the low-to-mid-single digit percentages in 2012, but most companies will be able to offset these losses through cost-cutting initiatives and diversification into more dynamic emerging markets. In contrast, Moody's outlook for rated generic companies -- Mylan Inc. (Ba2 stable), Teva Pharmaceutical Industries Ltd (A3 stable) and Watson Pharmaceuticals, Inc. (Baa3 positive) -- is more positive than for most branded drug companies, as they stand to benefit from the market opportunities presented by the upcoming patent cliff on large-selling drugs. Moody's expects biosimilars (copies of biotech drugs) to present a growth opportunity for the generic industry post 2015, with the US Food and Drug Administration making progress towards the implementation of a regulatory pathway for biosimilars. In Europe, the European Medicines Agency is expected to issue final guidelines for biosimilars containing monoclonal antibodies, which are more complex biotech drugs, but also some of the largest- selling. * Moskowitz Among Law360's Top Bankruptcy Attorneys Under 40 ------------------------------------------------------------ Lance Duroni at Bankruptcy Law360 reports that whether helping to stave off liquidation for debtors like Frontier Airlines Inc. or guiding financial giants through the bankruptcy fallout from leveraged buyouts gone wrong, Davis Polk & Wardwell LLP's Elliot Moskowitz has proven to be a deft negotiator with polished litigation skills, earning him a spot among Law360's top bankruptcy attorneys under 40. According to Law360, Mr. Moskowitz, 36, a 2001 graduate of Columbia Law School, has spent his entire career with Davis Polk, paying big dividends in the firm's bread-and-butter bankruptcy practice representing major financial institutions. * Senate Passes Bill to Head Off Shortage of Bankruptcy Judges -------------------------------------------------------------- Jacqueline Palank at Dow Jones' Daily Bankruptcy Review reports that a bipartisan bill that aims to head off a widespread shortage of bankruptcy judges by extending nearly 30 temporary judgeships passed the Senate and could go before President Barack Obama soon, the bill's sponsor said. * BOND PRICING -- For Week From April 16 to 20, 2012 ---------------------------------------------------- Company Coupon Maturity Bid Price ------- ------ -------- --------- AMBAC INC 9.375 8/1/2011 16.250 AMBAC INC 9.500 2/15/2021 17.250 AMBAC INC 7.500 5/1/2023 17.001 AMBAC INC 6.150 2/7/2087 0.250 AES EASTERN ENER 9.000 1/2/2017 24.000 AGY HOLDING COR 11.000 11/15/2014 36.000 AHERN RENTALS 9.250 8/15/2013 61.250 ALION SCIENCE 10.250 2/1/2015 49.500 AMER GENL FIN 5.200 5/15/2012 97.000 AMR CORP 9.000 8/1/2012 42.000 AM AIRLN PT TRST 10.180 1/2/2013 67.000 AM AIRLN PT TRST 9.730 9/29/2014 30.750 AMR CORP 6.250 10/15/2014 49.500 AM AIRLN PT TRST 7.379 5/23/2016 31.000 A123 SYSTEMS INC 3.750 4/15/2016 30.250 MAINST-CALL05/12 8.900 12/1/2027 100.750 BROADVIEW NETWRK 11.375 9/1/2012 85.800 BLOCKBUSTER INC 11.750 10/1/2014 1.688 C-CALL05/12 5.700 5/15/2024 100.700 CHRCH CAP FNDING 6.600 5/15/2013 25.000 DELTA AIR 1992B1 9.375 9/11/2017 26.625 DELTA AIR 1993A1 9.875 4/30/2049 19.260 DIRECTBUY HLDG 12.000 2/1/2017 16.875 DIRECTBUY HLDG 12.000 2/1/2017 23.000 DUNE ENERGY INC 10.500 6/1/2012 93.500 EASTMAN KODAK CO 7.250 11/15/2013 30.250 EASTMAN KODAK CO 7.000 4/1/2017 31.000 EASTMAN KODAK CO 9.950 7/1/2018 27.251 ENERGY CONVERS 3.000 6/15/2013 48.000 EVERGREEN SOLAR 13.000 4/15/2015 50.000 FIRST METRO 6.900 1/15/2019 15.000 GLB AVTN HLDG IN 14.000 8/15/2013 32.500 GMX RESOURCES 5.000 2/1/2013 73.936 GMX RESOURCES 5.000 2/1/2013 77.000 GLOBALSTAR INC 5.750 4/1/2028 55.500 HAWKER BEECHCRAF 8.500 4/1/2015 15.200 HAWKER BEECHCRAF 8.875 4/1/2015 12.000 HAWKER BEECHCRAF 9.750 4/1/2017 3.000 HOS-CALL04/12 6.125 12/1/2014 100.650 JBPOIN-CALL05/12 8.750 3/15/2014 100.000 KV PHARM 12.000 3/15/2015 55.000 QUICKSILVER RES 1.875 11/1/2024 97.703 LEHMAN BROS HLDG 0.250 9/6/2012 22.000 LEHMAN BROS HLDG 1.000 9/7/2012 22.000 LEHMAN BROS HLDG 0.250 12/8/2012 22.000 LEHMAN BROS HLDG 0.250 12/8/2012 22.000 LEHMAN BROS HLDG 1.000 12/9/2012 22.000 LEHMAN BROS HLDG 1.500 3/29/2013 22.000 LEHMAN BROS HLDG 1.000 10/17/2013 22.000 LEHMAN BROS HLDG 0.250 12/12/2013 22.000 LEHMAN BROS HLDG 0.250 1/26/2014 22.000 LEHMAN BROS HLDG 1.250 2/6/2014 22.000 LEHMAN BROS HLDG 1.000 3/29/2014 22.000 LEHMAN BROS HLDG 1.000 8/17/2014 22.000 LEHMAN BROS HLDG 1.000 8/17/2014 22.000 LEHMAN BROS INC 7.500 8/1/2026 10.250 LIFECARE HOLDING 9.250 8/15/2013 68.936 MASHANTUCKET PEQ 8.500 11/15/2015 10.300 MF GLOBAL LTD 9.000 6/20/2038 37.250 MANNKIND CORP 3.750 12/15/2013 54.500 NETWORK EQUIPMNT 7.250 5/15/2014 40.000 PMI GROUP INC 6.000 9/15/2016 21.901 PMI CAPITAL I 8.309 2/1/2027 0.500 PENSON WORLDWIDE 8.000 6/1/2014 32.142 POWERWAVE TECH 3.875 10/1/2027 33.458 POWERWAVE TECH 3.875 10/1/2027 31.500 REDDY ICE HLDNGS 10.500 11/1/2012 56.000 REDDY ICE CORP 13.250 11/1/2015 29.000 REAL MEX RESTAUR 14.000 1/1/2013 46.000 RESIDENTIAL CAP 6.500 4/17/2013 33.500 RESIDENTIAL CAP 6.875 6/30/2015 47.470 THORNBURG MTG 8.000 5/15/2013 6.000 TOUSA INC 9.000 7/1/2010 20.000 TOUSA INC 9.000 7/1/2010 21.000 TRAVELPORT LLC 11.875 9/1/2016 32.500 TRAVELPORT LLC 11.875 9/1/2016 33.000 TIMES MIRROR CO 7.250 3/1/2013 40.000 TRIBUNE CO 5.250 8/15/2015 35.750 TRICO MARINE 3.000 1/15/2027 0.750 TRICO MARINE 3.000 1/15/2027 0.031 TERRESTAR NETWOR 6.500 6/15/2014 10.000 TEXAS COMP/TCEH 7.000 3/15/2013 15.000 TEXAS COMP/TCEH 10.250 11/1/2015 21.250 TEXAS COMP/TCEH 10.250 11/1/2015 20.875 TEXAS COMP/TCEH 10.250 11/1/2015 21.500 TEXAS COMP/TCEH 15.000 4/1/2021 30.000 USEC INC 3.000 10/1/2014 40.500 VENTURE HLDGS 11.000 6/1/2007 4.750 VENTURE HLDGS 12.000 6/1/2009 5.000 VERSO PAPER 11.500 7/1/2014 106.000 WESTERN EXPRESS 12.500 4/15/2015 56.000 ********* 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, Ivy B. Magdadaro, 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 ***