/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/120612.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, June 12, 2012, Vol. 16, No. 162 Headlines 1POINT SOLUTIONS: Former Clients Can't Sue Bank for ERISA Fraud 261 EAST: Court Approves Corcoran Group as Leasing Agent 261 EAST: Court OKs Newhouse & Shey as Real Estate Counsel 39 SOUTH: Case Summary & 8 Largest Unsecured Creditors 4KIDS ENTERTAINMENT: Seeks to Keep Sole Control Over Case ADVANCED MEDICAL: Reports Convertible Note and Stock Issuances ADVANCED COMPUTER: Files for Chapter 11 in Puerto Rico ADVANCED COMPUTER: Case Summary & 20 Largest Unsecured Creditors ALABAMA BOATING: Case Summary & 9 Largest Unsecured Creditors ALEXANDER SRP: Plan Proposes Full Payment to Unsecured Creditors ALI INVESTMENTS: Case Summary & 4 Largest Unsecured Creditors AMERICAN AIRLINES: Reports May 2012 Revenue and Traffic AMERICAN WEST: Inks Restructuring, Settlement Deal with Bank Group ARCTIC GLACIER: Enters Binding Agreement to Sell to H.I.G. ARK OF SAFETY: Case Summary & 19 Largest Unsecured Creditors ATP OIL: Matt McCarroll Named as CEO But Subsequently Resigns AVISTAR COMMUNICATIONS: Six Directors Elected at Annual Meeting BAKERS FOOTWEAR: Annual Meeting Adjourned Until July 18 BALL GROUND: Cherokee County Seeks Stay Relief to Evict Owner BELL COPPER: Rogue River Defaults Under Secured Term Facility BERNARD L. MADOFF: Foreign Def. Cases Moved to District Court BICENT HOLDINGS: Wins Approval of Ch. 11 Disclosure Statement BONAVIA TIMBER: Court to Confirm Full Payment Plan CATALYST PAPER: Non-Binding Indication of Interest Due July 11 CBS I LLC: Files for Chapter 11 in Las Vegas CBS I LLC: Case Summary & 17 Largest Unsecured Creditors CLIFFS CLUB: Wants Exclusivity Periods Extended to October BAY FRONT: Case Summary & 20 Largest Unsecured Creditors BLUEKNIGHT ENERGY: MSDC Owns 24% Common Units, 6% Pref. Units BON-TON STORES: BlackRock Discloses 4.9% Equity Stake CHEMBULK NEW YORK: Singapore Proceedings Recognized by U.S. Court CONVERTED ORGANICS: Edward Gildea Elected to Board of Directors CRYSTAL CATHEDRAL: New Owner Renames Church CYNERGY GROUP: Voluntary Chapter 11 Case Summary DECOU LUMBER: Case Summary & 20 Largest Unsecured Creditors DELTA PETROLEUM: Plan to Accomplish Deleveraging of Balance Sheets DELTA PETROLEUM: Has Contribution Pact with Piceance & Laramie DESERT INN: Case Summary & 20 Largest Unsecured Creditors DEWEY & LEBOEUF: Lessors Object to Proposed Cash Collateral Use DEX ONE: Fails to Comply with NYSE's $1.00 Trading Price Rule DEX ONE: Atish Banerjea to Resell 100,000 Common Shares DURRANT GROUP: Court Dismisses Bankruptcy Case ENERGY CONVERSION: Adjournment Motion Denied, Procedures Approved ENERGY CONVERSION: Shareholders Withdraw Official Committee Bid ENERGY CONVERSION: Creditors Seek Plan Hearing Adjournment ENERGY CONVERSION: Summit Wants Equipment Excluded from Sale List GARY PHILLIPS: July 3 Hearing on Turnover of Cash Collateral GENON ENERGY: Moody's Corrects December 16 Ratings Release GOODMAN NETWORKS: Moody's Reviews 'B2' CFR for Downgrade GRIFFIN DEVELOPMENT: Voluntary Chapter 11 Case Summary HAWKER BEECHRAFT: Purchase Offers Won't Be Made Public HORIZON LINES: Names Sam Woodward as President and CEO HOUGHTON MIFFLIN: Taps PwC as Auditor, KMPG as Tax Consultant HOVNANIAN ENTERPRISES: Swings to $1.8MM Net Income in Fiscal Q2 HOWARD AVENUE: Case Summary & 10 Largest Unsecured Creditors INDIANAPOLIS DOWNS: Proposes Bidding Protocol INDYMAC BANCORP: Ruling Lifts Hopes of Failed Banks' Creditors INFINITY FUNDING: Case Summary & 5 Largest Unsecured Creditors INFUSYSTEM HOLDINGS: Terminates "Poison Pill" Plan INSIGHT COMMUNICATIONS: Moody's Withdraws B1 Corp. Family Rating INTELLICELL BIOSCIENCES: Signs Security Agreement with TCA IVOLUTION MEDICAL: Case Summary & 17 Largest Unsecured Creditors KH FUNDING: Third Amended Plan of Liquidation Declared Effective KHAJA BLESSING: Case Summary & 6 Largest Unsecured Creditors KMC REAL ESTATE: Non-Material Modification to 2nd Amended Plan KROLL CONTRACTORS: Case Summary & 20 Largest Unsecured Creditors LANDESK GROUP: Moody's Assigns 'B2' CFR; Outlook Stable LICHTIN/WADE LLC: Court Determines Global Mediation is Needed LICHTIN/WADE: Court Approves Hughes Pittman as Accountant M3 TECHNOLOGY: Voluntary Chapter 11 Case Summary MASTER SILICON: Suspending Filing of Reports with SEC MBAJ GROUP: Case Summary & 6 Largest Unsecured Creditors MIDWEST FAMILY: Moody's Lifts Rating on Class I Bonds to 'Ba1' MPG OFFICE: Has Agreement to Temporarily Hold 3800 Chapman Title NAVISTAR INTERNATIONAL: GAMCO Assets Discloses 4.6% Equity Stake NAVISTAR INTERNATIONAL: Carl Icahn Discloses 11.8% Equity Stake NAVISTAR INT'L: Losses Cue Fitch to Give BB Issuer Default Rating NEWPAGE CORP: Members Ratify New Four-Year Master Contract NORTHCORE TECHNOLOGIES: Announces Launch of Kuklamoo PACIFIC ALLIED: Case Summary & 2 Largest Unsecured Creditors PENINSULA HOSPITAL: Court OKs LaMonica Herbst as Trustee's Counsel PINNACLE AIRLINES: Flight 3407 Plaintiffs Want to Continue Suit PMI GROUP: Court Approves Sale of Impact Funding Certificates PNM INVESTMENTS: Case Summary & 5 Largest Unsecured Creditors REDDY ICE: Court Approves DLA Piper as Bankruptcy Counsel SAN JOSE REDEVELOPMENT: Moody's Cuts Bond Ratings to 'Ba2' SAVIENT PHARMA: Wants Creditors' Bid to Appoint Receiver Rejected SDA INC: Meeting to Form Creditors' Panel on June 13 SDA INC: Case Summary & 30 Largest Unsecured Creditors SEALY CORP: FPR Partners Discloses 8.8% Equity Stake SEITEL INC: Moody's Withdraws 'B3' Rating on $275MM Term Loan SEQUOIA PARTNERS: Gets More Time to File Amended Plan Outline SINO-FOREST: 72% of Noteholders Sign Support Agreement TALON THERAPEUTICS: Registers Add'l 1.5-Mil. Shares Under Plan TANDUS FLOORING: Moody's Upgrades CFR to 'B1'; Outlook Stable THANKS 1B: Case Summary & 14 Largest Unsecured Creditors THEMIS PROPERTIES: Case Summary & 7 Largest Unsecured Creditors TRAINOR GLASS: Wins Final Approval to Use Cash, Obtain DIP Loan TRIBUNE CO: Creditors Turn Attention to LBO Litigation UNIGENE LABORATORIES: In Talks with VPC on Debt Restructuring UNIGENE LABORATORIES: Richard Levy Discloses 46.2% Equity Stake UNI-PIXEL INC: Austin Marxe Ceases to Hold 5% Equity Stake UNITED CONTINENTAL: Pilots Hold Informational Picketing Tomorrow USEC INC: To Issue Additional 10MM Shares Under Savings Program USEC INC: Tradewinds Global Ceases to Hold 5% Equity Stake VITRO SAB: Judge Set to Rule on Bankruptcy Plan This Week WASHINGTON LOOP: Chapter 11 Liquidating Plan Wins Court Approval WASHINGTON LOOP: Court Says $23,804 is South Loop Collateral Value WESCHE JEWELERS: Case Summary & 15 Largest Unsecured Creditors WINDSOR PAVILIONS-DES: Case Summary & 5 Largest Unsec Creditors WYNN RESORTS: Fitch Affirms 'BB' LT IDR Rating; Outlook Stable ZAC THE CAT: Case Summary & 6 Largest Unsecured Creditors * Paul Hastings' M. McKinnon Moves to Greenberg Traurig * Sidley Austin Named Bankruptcy Team of the Year * Large Companies With Insolvent Balance Sheets ********* 1POINT SOLUTIONS: Former Clients Can't Sue Bank for ERISA Fraud --------------------------------------------------------------- Eric Hornbeck at Bankruptcy Law360 reports that former clients of a convicted investment adviser who bilked employee-benefits plans that he managed out of millions of dollars and his bankrupt company, 1Point Solutions LLC, can't sue Regions Bank for helping facilitate the fraud, because the bank wasn't their fiduciary, the Sixth Circuit ruled Friday. Bankruptcy Law360 says the bankruptcy trustee of third-party employee benefits administration company 1Point Solutions LLC and its owner, Barry Stokes, can't hold Regions Financial Corp.'s Regions Bank accountable for Stokes' fraud because the bank only collected fees from 1Point's accounts. Headquartered in Dickson, Tennessee, 1Point Solutions LLC's creditors filed an involuntary chapter 11 petition (Bankr. M.D. Tenn. Case No. 06-05400) on Sept. 26, 2006. John McLemore, the Chapter 11 Trustee in 1Point Solutions LLC obtained permission from the Court to substantively consolidate the Debtor's chapter 11 case with the bankruptcy case of the Debtor's founder, Barry R. Stokes. 261 EAST: Court Approves Corcoran Group as Leasing Agent -------------------------------------------------------- 261 East 78 Realty Corp. sought and obtained approval from the U.S. Bankruptcy Court to employ NRT NY LLC, dba The Corcoran Group, as leasing agent. Corcoran will "attempt to obtain satisfactory tenants to lease portion(s) of the Premises on terms to be approved by [the Debtor]," 261 East 78 Realty said in court papers. The Debtor will pay Corcoran a commission equivalent the rates in a rate schedule annexed to the parties' Exclusive Right To Lease Agreement. Payment will be deemed earned and payable upon execution of a lease agreement by both parties, and Corcoran will be paid as a priority professional expense. The Debtor believes the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About 261 East 261 East 78 Realty Corp. owns real property located at 261 East 78th Street, in New York. The premises consist of seven commercial units, three of which are currently occupied. 261 East 78 Realty filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 11-15624) on Dec. 6, 2011. The case was assigned to Judge Robert E. Gerber. Shaked & Posner serves as the Debtor's counsel. The Chapter 11 filing was precipitated by the commencement of foreclosure proceedings on the premises. The Debtor scheduled $20.2 million in assets and $18.8 million in liabilities. The petition was signed by Lee Moncho, president. 261 EAST: Court OKs Newhouse & Shey as Real Estate Counsel ---------------------------------------------------------- 261 East 78 Realty Corp. won permission from the U.S. Bankruptcy Court to employ Newhouse & Shey LLP as special real estate counsel. The Debtor needs N&S for the leasing of its premises, the completion of the construction, and the negotiation with current tenants occupying the premises regarding the payment of rent by tenants and other related matters. N&S will coordinate with Shaked & Posner, the Debtor's bankruptcy counsel. John Newhouse, Esq., attests that N&S is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. N&S will be paid according to its normal hourly rates of $400 per hour for partners and $225 to $300 per hour for associates. About 261 East 261 East 78 Realty Corp. owns real property located at 261 East 78th Street, in New York. The premises consist of seven commercial units, three of which are currently occupied. 261 East 78 Realty filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 11-15624) on Dec. 6, 2011. The case was assigned to Judge Robert E. Gerber. Shaked & Posner serves as the Debtor's counsel. The Chapter 11 filing was precipitated by the commencement of foreclosure proceedings on the premises. The Debtor scheduled $20.2 million in assets and $18.8 million in liabilities. The petition was signed by Lee Moncho, president. 39 SOUTH: Case Summary & 8 Largest Unsecured Creditors ------------------------------------------------------ Debtor: 39 South Main LLC 29 Cameo Ridge Road Monsey, NY 10952 Bankruptcy Case No.: 12-23068 Chapter 11 Petition Date: June 5, 2012 Court: U.S. Bankruptcy Court Southern District of New York (White Plains) Judge: Robert D. Drain Debtor's Counsel: Scott B. Ugell, Esq. UGELL LAW FIRM, P.C. 24 South Main Street, Suite 100 New City, NY 10956 Tel: (845) 639-7011 Fax: (845) 639-7004 E-mail: Scott@UgellLaw.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 eight largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/nysb12-23068.pdf The petition was signed by Victor Fein, senior member manager. 4KIDS ENTERTAINMENT: Seeks to Keep Sole Control Over Case --------------------------------------------------------- Marie Beaudette at Dow Jones' DBR Small Cap reports 4Kids Entertainment Inc. is seeking to keep control over its Chapter 11 case for another two months as it awaits the outcome of sale negotiations between two rival bidders for its assets. New York-based 4Kids Entertainment, Inc., dba 4Kids, is an entertainment and media company specializing in the youth oriented market, with operations in these business segments: (i) licensing, (ii) advertising and media broadcast, and (iii) television and film production/distribution. The parent entity, 4Kids Entertainment, was organized as a New York corporation in 1970. 4Kids filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code to protect its most valuable asset -- its rights under an exclusive license relating to the popular Yu-Gi-Oh! series of animated television programs -- from efforts by the licensor, a consortium of Japanese companies, to terminate the license and force 4Kids out of business. 4Kids and affiliates filed Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 11-11607) on April 6, 2011. Kaye Scholer LLP is the Debtors' restructuring counsel. Epiq Bankruptcy Solutions, LLC, is the Debtors' claims and notice agent. BDO Capital Advisors, LLC, is the financial advisor and investment banker. EisnerAmper LLP fka Eisner LLP serves as auditor and tax advisor. 4Kids Entertainment disclosed $78,397,971 in assets and $86,515,395 in liabilities as of the Chapter 11 filing. Hahn & Hessen LLP serves as counsel to the Official Committee of Unsecured Creditors. Epiq Bankruptcy Solutions LLC is the information agent for the Committee. The Consortium consists of TV Tokyo Corporation, which owns and operates a television station in Japan; ASATSU-DK Inc., a Japanese advertising company; and Nihon Ad Systems, ADK's wholly owned subsidiary. The Consortium is represented by Kyle C. Bisceglie, Esq., Michael S. Fox, Esq., Ellen V. Holloman, Esq., and Mason Barney, Esq., at Olshan Grundman Frome Rosenzweig & Wolosky LLP, in New York. In January 2012, the bankruptcy judge ruled in favor of 4Kids, deciding that the Yu-Gi-Oh! property license agreement between the Debtor and the licensor was not effectively terminated prior to the bankruptcy filing. Following the ruling, 4Kids entered into a settlement where it would receive $8 million to end the dispute over its valuable Yu-Gi-Oh! Property. ADVANCED MEDICAL: Reports Convertible Note and Stock Issuances -------------------------------------------------------------- In exchange for $55,000, Advanced Medical Isotope Corporation issued to an investor who is a director and principal stockholder of the Company a convertible note in the principal amount of $55,000 and 22,000 shares of common stock as a loan origination fee. The note bears interest at 10% per annum. The principal and interest are due and payable in full on the maturity date of May 18, 2013. At the option of the holder, the principal and interest are convertible into common stock at $0.09 per share. On May 31, 2012, in exchange for $70,000, the Company issued to the same investor a convertible note in the principal amount of $70,000 and 28,000 shares of common stock as a loan origination fee. The note bears interest at 10% per annum. The principal and interest are due and payable in full on the maturity date of May 31, 2013. At the option of the holder, the principal and interest are convertible into common stock at $0.10 per share. On May 17, 2012, in exchange for $50,000, the Company sold to one accredited investor 500,000 units for $0.10 per unit. Each unit consists of one share of common stock and a warrant to purchase .75 of one share of common stock at an exercise price of $0.25 per share, exercisable for a period of 3 years. The Company is obligated to issue to the placement agent a warrant for common shares equal to 10% of the securities issued to this investor. That warrant will have an exercise price of $0.10 per share and will be exercisable for a period of one year, or if the volume weighted average price of the common stock is less than $0.25 per share at the scheduled expiration of the warrant, the term of the warrant will be extended by another year until such later anniversary of its issuance when the stock price as so determined exceeds $0.25 per share, but not later than 5 years from the date of issuance. On June 4, 2012, the Company entered into two consulting agreements pursuant to which, in exchange for consulting services, the Company is obligated to issue to each consultant (i) a three- year warrant to purchase 600,000 shares of common stock at an exercise price of $0.09 per share; and (ii) a three-year warrant to purchase 1,000,000 shares of common stock at an exercise price of $0.25 per share. Each of the consultants has represented that it is an accredited investor. About Advanced Medical Kennewick, Washington-based Advanced Medical Isotope Corporation is engaged in the production and distribution of medical isotopes and medical isotope technologies. Medical isotopes are used in molecular imaging, therapy, and nuclear medicine to diagnose, manage and treat diseases. After auditing the financial statements for the year ended Dec. 31, 2011, HJ & Associates, LLC, in Salt Lake City, Utah, expressed substantial doubt about Advanced Medical Isotope's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses, used significant cash in support of its operating activities and, based upon current operating levels, requires additional capital or significant restructuring to sustain its operation for the foreseeable future. The Company reported a net loss of $2.7 million for 2011, compared with a net loss of $4.1 million for 2010. The Company's balance sheet at March 31, 2012, showed $969,233 in total assets, $6.43 million in total liabilities and a $5.46 million total stockholders' deficit. ADVANCED COMPUTER: Files for Chapter 11 in Puerto Rico ------------------------------------------------------ San Juan, Puerto Rico-based Advanced Computer Technology, Inc., filed a Chapter 11 petition (Bankr. D.P.R. Case No. 12-04454) in Old San Juan on June 6, 2012. The Debtor, an information system consulting firm, disclosed $10.34 million in assets and $6.176 million in liabilities in its schedules. It said software and licenses rights are worth $6.30 million. The value of its 100% ownership of Sprinter Solutions, Inc., is unknown. A copy of the schedules is available for free at: http://bankrupt.com/misc/prb12-04454.pdf ADVANCED COMPUTER: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Advanced Computer Technology (ACT), Inc. P.O. Box 195132 San Juan, PR 00919-5132 Bankruptcy Case No.: 12-04454 Chapter 11 Petition Date: June 6, 2012 Court: U.S. Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Charles Alfred Cuprill, Esq. CHARLES A CURPILL, PSC LAW OFFICE 356 Calle Fortaleza, Second Floor San Juan, PR 00901 Tel: (787) 977-0515 E-mail: cacuprill@cuprill.com Scheduled Assets: $10,338,182 Scheduled Liabilities: $6,176,472 The petition was signed by Osvaldo Karuzic, chief executive officer. Debtor's List of Its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Gomez Holdings, Inc. -- $1,500,000 P.O. Box 3450 Mayaguez, PR 00681-3450 Departamento de Hacienda de PR Payroll Taxes - $1,047,181 Bankruptcy Section (424-B) Withholdings P.O. Box 9024140 San Juan, PR 00902-4140 Allen Systems Group, Inc. Software Licenses $299,972 P.O. Box 2197 Carol Stream, IL 60132-2197 Xerox Capital Services, LLC Lease Arrears $261,692 1301 Ridgeview Drive ? 450 Lewisville, TX 75057 Sabiamed, Corp. (Intheco) Software Support $250,000 P.O. Box 6150 Services Caguas, PR 00726-6150 Golden Mile Development, S.E. Rent Arrears $240,665 A.S. Consulting, Inc. Sales Consultant $173,067 Health Trio Software and Licenses $149,320 Maintenance Rivera Reyes Law Offices Legal Services $116,487 MKA Healthcare Advisors Computer System $111,332 Support Services IBM Corporation Equipment Lease $110,761 Arrears American Express Corporate Credit Card $106,032 Paradigma LTDA Software and Licenses $77,576 Oles de Puerto Rico Inventory Purchases $61,337 Municipio de San Juan Municipal Taxes $55,426 Four Floor Management, Corp. Rent Arrears $54,313 Rafael Rosario & Associates Equipment Repairs $46,934 Services Capital Leasing Source, Corp. Equipment Repairs $46,183 Services Scherrer Hernandez & Co. Auditing Services $40,219 Kofax Software and Licenses $37,196 ALABAMA BOATING: Case Summary & 9 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Alabama Boating Center, Inc. fdba Ryan Creek Boating Center fdba Ryan Creek Acquisition, Inc. 4701 Martin St. S. Cropwell, AL 35054 Bankruptcy Case No.: 12-41077 Chapter 11 Petition Date: June 7, 2012 Court: United States Bankruptcy Court Northern District of Alabama (Anniston) Debtor's Counsel: Harvey B. Campbell, Jr., Esq. John M. Caraway, Jr. CAMPBELL AND CAMPBELL, PC P.O. Drawer 756 400 S. Court Square Talladega, AL 35161-0756 Tel: (256) 761-1858 Fax: (256) 362-5966 E-mail: hbcampbell@prodigy.net John@campbellandcampbellpc.com Scheduled Assets: $3,397,179 Scheduled Liabilities: $4,111,919 A copy of the Debtor's list of its nine largest unsecured creditors is available for free at http://bankrupt.com/misc/alnb12-41077.pdf The petition was signed by Billy Cosper, Jr., president. ALEXANDER SRP: Plan Proposes Full Payment to Unsecured Creditors ---------------------------------------------------------------- Alexander SRP Apartments, LLC, submitted to the U.S. Bankruptcy Court for the Southern District of Georgia a proposed Plan of Reorganization dated as of May 21, 2012. According to the Disclosure Statement, the Plan provides that all assets of the Debtor will automatically vest in the Reorganized Debtor on the Effective Date. Lone Star Fund's Secured Claim will be treated as fully secured under the Plan. On or before the Effective Date, the Equity Interest holders of the Debtor will invest an additional $450,000 into the Reorganized Debtor, to be applied to pay a lump sum reduction of principal in the amount of $150,000, and $300,000 towards the Construction Defect Repairs necessary as a result of the Construction Defects. Equity Interest holders will obtain a lien against the proceeds of Construction Defect Claims against third parties for the Construction Defects to the extent of their payment of the Construction Defect Repair costs. In addition, on or before the Effective Date, the Debtor will pay Lone Star all unpaid interest on the Loan at the non-default rate as of the Effective Date (expected to be approximately $144,000) from Accumulated Cash. On the Effective Date, the Reorganized Debtor will issue the New Secured Note to Lone Star in the amount due under the Loan Agreement as of that date, after application of the $150,000 principal paid by Equity Interest holders and the accrued interest payment. The New Secured Note will bear interest at an annual rate of 4% (calculated monthly) or such other rate as may be determined by the Court at the Confirmation Hearing, and will have a maturity date of two years from the date of issuance. The New Secured Note will be secured by a first priority lien on the Property, other than the proceeds of Construction Defect Claims against third parties and insurers for the third parties responsible for the Construction Defects. Allowed non-insider Unsecured Claims will be paid 100% of the Allowed Amount of the Claims, with interest accruing at an annualized rate of 5%, by the Reorganized Debtor out of the Net Cash Flow of the Property in 12 monthly pro rata payments commencing on the Effective Date of the Plan. A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/ALEXANDER_SRP_ds.pdf About Alexander SRP Apartments Alexander SRP Apartments, the owner and operator of a 232-unit apartment complex known as Odyssey Lake Apartments, located in Brunswick, Georgia, filed for Chapter 11 bankruptcy (Bankr. S.D. Ga. Case No. 12-20272) on March 5, 2012. The apartment is currently roughly 84% occupied. The Debtor said it is a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101(51B). Judge Susan D. Barrett oversees the case, taking over from Judge John S. Dalis. Robert M. Cunningham, Esq., at Hunter MacLean Exley & Dunn, PC; and Laura E. Woodson, Esq., and Robert Williamson, Esq., at Scroggins & Williamson, P.C., serve as counsel for the Debtor. In its schedules, the Debtor disclosed $23.2 million in total assets and $17.7 million in total liabilities. No committee of unsecured creditors has been appointed in the case. ALI INVESTMENTS: Case Summary & 4 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Ali Investments, LLC 3270 Waldheim Drive Port Huron, MI 48060 Bankruptcy Case No.: 12-53899 Chapter 11 Petition Date: June 6, 2012 Court: United States Bankruptcy Court Eastern District of Michigan (Detroit) Judge: Steven W. Rhodes Debtor's Counsel: David R. Heyboer, Esq. HEYBOER LAW PLC 511 Fort Street, Suite 407 Port Huron, MI 48060 Tel: (810) 982-9800 Fax: (810) 982-1148 E-mail: HFLaw@iwarp.net Schedued Assets: $600,000 Scheduled Liabilities: $1,169,192 A copy of the Debtor's list of its four largest unsecured creditors is available for free at http://bankrupt.com/misc/mieb12-53899.pdf The petition was signed by S. Akram Ali, member. AMERICAN AIRLINES: Reports May 2012 Revenue and Traffic ------------------------------------------------------- AMR Corporation, the parent company of American Airlines, Inc., today reported May 2012 consolidated revenue and traffic results for its principal subsidiary, American Airlines, Inc., and its wholly owned subsidiary, AMR Eagle Holding Corporation. May's consolidated passenger revenue per available seat mile (PRASM) increased an estimated 7.3% compared to the prior year period, driven by a strong yield environment and increased international load factors. The Company reported a May consolidated load factor of 83.5%, an increase of 0.8 points versus the same period last year. Consolidated traffic increased 0.4% year-over-year, on 0.6% lower capacity. Domestic traffic increased 1.0% and capacity increased 1.7%, resulting in a domestic load factor of 85.4%, 0.6 points lower versus the same period last year. International load factor was 82.0%, an increase of 2.6 points year-over-year. International capacity and traffic were 4.3% and 1.2 % lower year-over-year respectively. On a consolidated basis, the Company boarded 9.5 million passengers in May. 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 monthsended 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. AMR'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 WEST: Inks Restructuring, Settlement Deal with Bank Group ------------------------------------------------------------------ American West Development, Inc., notified the U.S. Bankruptcy Court for the District of Nevada that it entered into a restructuring, lock-up and settlement letter agreement dated as of Feb. 28, 2012, with California Bank & Trust (as administrative agent and lead arranger) and other lenders party to that certain term loan credit agreement dated as of Dec. 31, 2009. The agreement contemplates that: 1. The Debtor will be filing a plan of reorganization that contains provisions that permit the DIP lender to convert up to 100% ownership of the new equity interests in the reorganized Debtor upon the effective date of the proposed Plan. 2. Because the DIP lender is an affiliate of the holders of the prepetition equity interests in the Debtor and no assurance can be given that the holders of all claims impaired by the proposed Plan that are senior to the prepetition equity positions will be paid in full, the Debtor, effective upon the filing of the proposed Plan with the Bankruptcy Court, will be deemed to have abandoned or otherwise waived the exclusive right to file a plan of reorganization that the prepetition equity interest holders have the exclusive opportunity, free from competition, to obtain the new equity interests in the reorganized Debtor. About American West American West Development, Inc. -- fdba Castlebay 1, Inc., et al. -- is a homebuilder in Las Vegas, Nevada, founded on July 31, 1984. Initially, AWDI was known as CKC Corporation, but later changed its name. AWDI filed for Chapter 11 bankruptcy protection (Bankr. D. Nev. Case No. 12-12349) on March 1, 2012. Judge Mike K. Nakagawa presides over the case. Brett A. Axelrod, Esq., and Micaela Rustia Moore, Esq., at Fox Rothschild LLP, serve as AWDI's bankruptcy counsel. Nathan A. Schultz, P.C., is AWDI's conflicts counsel. AWDI hired Garden City Group as its claims and notice agent. American West disclosed $55,392,951 in assets and $208,495,200 in liabilities as of the Chapter 11 filing. ARCTIC GLACIER: Enters Binding Agreement to Sell to H.I.G. ---------------------------------------------------------- Arctic Glacier Income Fund has entered into a binding agreement to sell substantially all of its business and assets to an affiliate of H.I.G. Capital, a prominent private equity investment fund headquartered in Miami, Florida. The Purchaser submitted its proposal in accordance with Arctic Glacier's court approved Sale and Investor Solicitation Process under the Companies' Creditors Arrangement Act (Canada). Alvarez & Marsal Canada Inc., the CCAA Court-appointed monitor, recommended, after consultation with Arctic Glacier's financial advisor, TD Securities Inc., the Chief Process Supervisor and Arctic Glacier, the Qualified Bid submitted by the Purchaser as the most favorable Qualified Bid and that it should be selected. The Special Committee of Arctic Glacier's Board of Trustees accepted the Monitor's recommendation in accordance with the SISP. The Agreement and completion of the Transaction remain subject to court approval in Canada and the United States, pre-merger clearance in the United States, and the satisfaction of certain closing conditions customary in transactions of this nature, including the absence of a material adverse change in respect of Arctic Glacier. The Purchaser has arranged committed financing for the completion of the Transaction, which is expected to close by July 31, 2012. Upon completion of the Transaction, Arctic Glacier will be a financially stronger company that is well positioned for growth. The Purchaser intends to partner with senior management of Arctic Glacier to implement growth initiatives that will enhance profitability and increase the value of the business. On closing, all Arctic Glacier employees will be offered employment and the company's head office will remain in Winnipeg. The Agreement provides that the Purchaser will assume Arctic Glacier's current trade payables, its leases and certain contractual obligations. Arctic Glacier's existing secured lenders will be paid in full on closing. Arctic Glacier expects that the net proceeds of the sale will be sufficient to pay all of its remaining known creditors and may be sufficient to permit a distribution to its unit holders after all creditor claims have been proven and satisfied. The timing and amount of any distributions to be paid to creditors and unitholders cannot be determined at this time. Keith McMahon, President and CEO of Arctic Glacier, commented, "this transaction is the result of the tremendous effort and dedication of our employees who should be proud of their efforts. We look forward to working with H.I.G. to complete this sale, which we expect will put us in a strong competitive position to grow our business and strengthen our position as an industry leader in the packaged ice business." About Arctic Glacier Winnipeg, Canada-based Arctic Glacier Inc., et al., manufacture packaged ice for distribution in Canada and the United States. Philip J. Reynolds of Alvarez & Marsal Canada Inc., as monitor and foreign representative, filed Chapter 15 petitions for Arctic Glacier, et al. (Bankr. D. Del. Lead Case No. 12-10603) on Feb. 22, 2012. Bankruptcy Judge Kevin Gross presides over the case. Mr. Reynolds is represented by Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, LLP. The Debtors is estimated to have assets and debts at $100 million to $500 million. ARK OF SAFETY: Case Summary & 19 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Ark of Safety Christian Church, Inc. 9402 Marlboro Pike Upper Marlboro, MD 20772 Bankruptcy Case No.: 12-20587 Chapter 11 Petition Date: June 6, 2012 Court: United States Bankruptcy Court District of Maryland (Greenbelt) Judge: Paul Mannes Debtor's Counsel: Edward Gonzalez, Esq. EDWARD GONZALEZ PC 2405 Eye Street NW, Suite 1A Washington, DC 20037 Tel: (202) 822-4970 E-mail: eg@money-law.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 19 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/mdb12-20587.pdf The petition was signed by Brandi Calhoun, executive administrator. ATP OIL: Matt McCarroll Named as CEO But Subsequently Resigns ------------------------------------------------------------- ATP Oil & Gas Corporation announced that Mr. Matt McCarroll has joined the Company as Chief Executive Officer. ATP Chairman T. Paul Bulmahn stated, "We are very pleased to add Matt to our leadership team. His successful and proven talent in offshore property development is an asset to ATP. His experience in the offshore Gulf of Mexico will be invaluable to moving forward our Clipper and Telemark properties in addition to our international properties. Matt's commitment to ATP has already been shown by his purchase today of 1,000,000 shares of our common stock directly from ATP at market price." Mr. McCarroll replaced Mr. Bulmahn as CEO. Mr. Bulmahn continues to serve as Chairman and also in the newly created position of Executive Chairman of ATP. However, on June 7, 2012, the Company said it was unable to reach a mutually agreeable employment agreement with Mr. McCarroll and effective June 7 he has submitted his resignation. In conjunction with his resignation, the previously announced purchase of shares from the company by Mr. McCarroll was rescinded. Annual Meeting Results On June 1, 2012, the Company held its 2012 annual meeting of shareholders. The shareholders elected Burt A. Adams, Arthur H. Dilly and Brent M. Longnecker as Class III directors and ratified the appointment of PriceWaterhouseCoopers LLP as independent auditors of the Company for fiscal year ending Dec. 31, 2012. All three nominated directors were elected to serve for terms of three years. About ATP Oil Houston, Tex.-based ATP Oil & Gas Corporation is an international offshore oil and gas development and production company focused in the Gulf of Mexico, Mediterranean Sea and North Sea. The Company trades publicly as ATPG on the NASDAQ Global Select Market. The Company's balance sheet at March 31, 2012, showed $3.63 billion in total assets, $3.48 billion in total liabilities, $115.81 million in redeemable noncontrolling interest, $71.18 million in 8% convertible perpetual preferred stock, and a $34.44 million total shareholders' deficit. * * * As reported by the TCR on May 9, 2012, Moody's Investors Service affirmed ATP's Caa2 Corporate Family Rating. The Caa2 Corporate Family Rating reflects ATP's small production and cash flow base, low drilling risk diversification, high proportion of proved undeveloped reserves and short PD (proved developed) reserve life, extremely high leverage and chronic liquidity challenges. AVISTAR COMMUNICATIONS: Six Directors Elected at Annual Meeting --------------------------------------------------------------- Avistar Communications Corporation held its annual meeting of stockholders on June 6, 2012. At annual meeting, stockholders elected the six directors, namely: (1) Gerald J. Burnett, (2) William L. Campbell, (3) Craig F. Heimark, (4) Stephen Heinrichs, (5) Robert M. Metcalfe?and (6) Robert F. Kirk. Each director will serve until the next annual meeting of stockholders or in each case until his successor is duly elected and qualified. Additionally, the stockholders voted to ratify the appointment of Burr Pilger Mayer, Inc., as the Company's independent registered public accounting firm for the fiscal year ending Dec. 31, 2012. 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. The Company's balance sheet at March 31, 2012, showed $3.25 million in total assets, $17.31 million in total liabilities and a $14.05 million total stockholders' deficit. BAKERS FOOTWEAR: Annual Meeting Adjourned Until July 18 ------------------------------------------------------- Bakers Footwear Group, Inc., commenced its annual meeting of shareholders on June 7, 2012, as previously scheduled. No business was able to be validly conducted at the annual meeting due to the lack of a requisite quorum. The requisite quorum is reached when a majority of outstanding shares of the common stock as of the record date entitled to vote on the subject matter is represented either in person or by proxy at the annual meeting. To permit additional time to receive shareholder votes on Proposal I (Election of Directors) and Proposal II (Ratification of Ernst & Young, LLP, as the Company's independent registered public accounting firm for fiscal year 2012), the annual meeting was adjourned until Wednesday, July 18, 2012, at 11 a.m. (central daylight time) and scheduled to reconvene at that time at the Company's offices located at 2815 Scott Avenue, St. Louis, Missouri, 63103. About Bakers Footwear St. Louis, Mo.-based Bakers Footwear Group, Inc. (OTC BB: BKRS.OB) is a national, mall-based, specialty retailer of distinctive footwear and accessories for young women. The Company's merchandise includes private label and national brand dress, casual and sport shoes, boots, sandals and accessories. The Company currently operates 231 stores nationwide. Bakers' stores focus on women between the ages of 16 and 35. Wild Pair stores offer fashion-forward footwear to both women and men between the ages of 17 and 29. The Company reported a net loss of $10.95 million for the year ended Jan. 28, 2012, a net loss of $9.29 million for the year ended Jan. 29, 2011, and a net loss of $9.08 million for the year ended Jan. 30, 2010. After auditing the Company's financial results for fiscal 2012, Ernst & Young LLP, in St. Louis, Missouri, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred substantial losses from operations in recent years and has a significant working capital deficiency. The Company reported a net loss of $10.95 million on $185.09 million of net sales for the 52 weeks ended Jan. 28, 2012, compared with a net loss of $9.29 million on $185.62 million of net sales for the 52 weeks ended Jan. 29, 2011. The Company's balance sheet at Jan. 28, 2012, showed $41.71 million in total asset, $58.32 million in total liabilities and a $16.61 million shareholders' deficit. Bankruptcy Warning The Company said in the Form 10-K for the year ended Jan. 28, 2012, that if it does not achieve its updated business plan and its margin improvement and cost reduction plan, or if the Company were to incur significant unplanned cash outlays, it would become necessary for the Company to quickly seek additional sources of liquidity, or to find additional cost cutting measures. Any future financing would be subject to the Company's financial results, market conditions and the consent of the Company's lenders. The Company may not be able to obtain additional financing or it may only be able to obtain such financing on terms that are substantially dilutive to the Company's current shareholders and that may further restrict the Company's business activities. If the Company cannot obtain needed financing, its operations may be materially negatively impacted and the Company may be forced into bankruptcy or to cease operations. BALL GROUND: Cherokee County Seeks Stay Relief to Evict Owner ------------------------------------------------------------- Kristal Dixon at Cherokee Tribune reports that Cherokee County attorney Angie Davis said the county was planning to file a motion asking the U.S. Bankruptcy Court for the Northern District of Georgia to remove the stay granted to Ball Ground Recycling when the company filed for Chapter 11 protection. Removing the stay, she said, would be the first step in allowing the county to evict Ball Ground Recycling owner Jimmy Bobo from the property he leases from the county. The report notes the county is mainly focused on removing Mr. Bobo from the property and determining what assets Mr. Bobo has that could be used to repay the debt he owes the county are two items. The report relates Mr. Bobo said in an e-mail that at present he did not want to comment on the situation and was focusing on the business and a reorganization path that would make the project work for the county. According to the report, the bankruptcy filing came just days before the county planned to force the owner off the property if he did not pay some of the money owed to Cherokee County for bond payments. The report says the Cherokee County Board of Commissioners and the Resource Recovery Development Authority approved an eviction notice for the company, which ordered the company to get off the property it leases in Ball Ground by May 29 or start paying the county at least a partial payment weekly of $15,000 to delay eviction. Based in Canton, Georgia, Ball Ground Recycling, LLC, filed for Chapter 11 protection (Bankr. N.D. Ga. Case No. 12-63101) on May 25, 2012. Judge Margaret Murphy presides over the case. Herbert C. Broadfoot, II, Esq., at Ragsdale, Beals, Seigler, Patterson & Gray, LLP, represents the Debtor. The Debtor estimated both assets and debts of between $10 million and $50 million. BELL COPPER: Rogue River Defaults Under Secured Term Facility ------------------------------------------------------------- Bell Copper Corporation discloses that events of default have occurred under the secured term credit facility provided to Rogue River Resources Corp. the Company's wholly-owned subsidiary, by Macquarie Bank Limited and related agreements. The events of default include the incurrence of trade indebtedness in excess of the limit specified under the Credit Facility, failure to obtain the required permits relating to iron ore activities on the Company's La Balsa project and failure to deliver a bankable feasibility study in respect of the La Balsa project within the time limits specified under the Credit Facility. The Credit Facility is secured by a charge over the Company's La Balsa project. As a result of the foregoing events of default, Macquarie may give notice to Rogue River declaring the amounts owing under the Credit Facility to be forthwith due and payable. The Company has not received such notice as of the date of this news release. The Company intends to pursue good faith efforts to negotiate with Macquarie a mutually satisfactory resolution with respect to the events of default. The Company is also currently in discussions with a number of interested parties regarding potential strategic transactions with respect to the La Balsa property, and continues to evaluate strategic opportunities regarding the Company's other assets. About Bell Copper Bell Copper is a public company with a focus on copper exploration, development and production in North America. The Company has an extensive portfolio of exploration and development projects located in two of North America's premier copper producing regions: Mexico and Arizona. BERNARD L. MADOFF: Foreign Def. Cases Moved to District Court ------------------------------------------------------------- Amanda Bransford at Bankruptcy Law360 reports that Merrill Lynch International, HSBC Bank PLC and other parties sued by the trustee liquidating the Madoff estate won a temporary withdrawal of their cases from New York bankruptcy court on Thursday and a hearing to determine whether the trustee can recover from foreign recipients of Madoff transfers. Bankruptcy Law360 relates that U.S. District Judge Jed Rakoff signed off on an order moving 60 cases against foreign defendants from bankruptcy court to the U.S. District Court for the Southern District of New York. 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.) The SIPA Trustee has said that as of March 31, 2012, through prepetition litigation and other settlements, he has successfully recovered, or reached agreements to recover, more than $9 billion -- over 50% of the principal lost in the Ponzi scheme by those who filed claims -- for the benefit of all customers of BLMIS. The liquidation has so far has cost the Securities Investor Protection Corp. $1.3 billion, including $791 million to pay a portion of customers' claims. Mr. Picard has so far made only one distribution in October of $325 million for 1,232 customer accounts. Uncertainty created by the appeals has limited Mr. Picard's ability to distribute recovered funds. Outstanding appeals include the $5 billion Picower settlement and the $1.025 billion settlement. BICENT HOLDINGS: Wins Approval of Ch. 11 Disclosure Statement ------------------------------------------------------------- Jamie Santo at Bankruptcy Law360 reports that Bicent Holdings LLC won approval on Friday for an amended disclosure statement, allowing the Company to begin soliciting votes for its Chapter 11 reorganization plan. Bankruptcy Law360 relates that Centennial Energy Holdings Inc. and Lea Power Partners LLC lodged objections last week to the original statement, claiming it failed to supply vital information to unsecured creditors. Bicent filed the amended disclosure statement on Thursday, and U.S. Bankruptcy Judge Kevin Gross agreed to sign off the revised version, according to Bankruptcy Law360. About Bicent Power Bicent Holdings LLC and 12 of its affiliates sought bankruptcy protection under Chapter 11 (Bankr. D. Del. Lead Case No. 12-11304) on April 23, 2012. Bicent, based in Lafayette, Colorado, owns and operates two generating facilities: Hardin, a 120-megawatt coal-fired plant about 40 miles southeast of Billings, Montana, and San Joaquin, a 48-megawatt natural gas- fired facility about 70 miles east of San Francisco in Lathrop, California. Bicent Holdings is owned by non-debtor Bicent Prime Holdings, which is 87.1%-owned by Natural Gas Partners VIII LP, Natural Gas Partners IX LP and NGP IX Offshore Holdings LP and 12.9 percent- owned by Beowulf (Bicent) LLC. In their petitions, Bicent Holdings estimated under $50,000 in assets and $50 million to $100 million in debts. Bicent Power estimated $100,000 to $500,000 in assets and $500 million to $1 billion in debts. The petitions were signed by Christopher L. Ryan, chief financial officer. Judge Kevin Gross oversees the case. The Debtors have tapped Young Conaway Stargatt & Taylor, LLP as bankruptcy counsel; Moelis & Company LLC, as financial advisor, and Paul, Weiss, Rikfind, Wharton & Garrison LLP as corporate counsel. Epiq Bankruptcy Solutions LLC serves as claims and notice agent. The plan is supported by holders of more than two-thirds of the first- and second-lien debt, according to the disclosure statement. Under the Plan, among other things: holders of mezzanine debt owed $65.2 million are to receive nothing. Likewise, general unsecured creditors are slated for no recovery. BONAVIA TIMBER: Court to Confirm Full Payment Plan -------------------------------------------------- The U.S. Bankruptcy Court for the District of Oregon, according to a May 31, 2012 confirmation hearing minutes, ordered that counsel for Bonavia Timber Company LLC, et al., submit a stipulated confirmation order and stipulated order relating to the two objections. The Court also ordered, pursuant to a stipulation, that creditor Third Eye withdraw its motion to dismiss. The Debtors and Third Eye have reached a stipulation resolving matters between the parties. The Debtors' First Amended Joint Plan of Reorganization dated May 30, 2012, provides for the payment in full of all Allowed Claims. The Reorganized Debtor will fund payments to its Creditors and otherwise satisfy its Plan obligations from available Cash, from continuing operations, and, as more fully set forth below, from the sale or finance of certain of Debtor's assets. On the Effective Date, the Debtors will pay to Third Eye (or, with respect to the South Ganger Sale and in the event Third Eye exercises its right to credit bid pursuant to Section 7.6 of the Plan, offset against Third Eye's Class 2 Claim) an amount equal to the sum of (a) the net sales proceeds from the South Ganger Sale (which net sales proceeds will not be less than $1.50 million), plus (b) the net loan proceeds from the Equitable Loan (which net loan proceeds will not be less than $4.40 million). Upon the closing of the South Ganger Sale and the payment of the net sales proceeds to Third Eye, Third Eye will release its lien on the South Ganger Property. Each holder of an Allowed Class 3 Claim will be paid in Cash the full amount of its Class 3 Claim no later than six months after the Effective Date, with interest from the Petition Date at the Federal Judgment Rate. Existing Interests in Debtor will be preserved. However, until all Allowed Claims have been paid in full, Reorganized Debtor will not repurchase any stock or membership interests or make or pay any distributions or dividends to its owners on account of their stock or membership interests, except for tax distributions necessary to meet income tax obligations arising from income attributable to Debtor or Reorganized Debtor. A full-text copy of the First Amended Plan is available for free at http://bankrupt.com/misc/BONAVIA_TIMBER_plan_1amended.pdf A full-text copy of the Second Amended Disclosure Statement is available for free at: http://bankrupt.com/misc/BONAVIATIMBER_ds_2amended.pdf About Bonavia Timber Portland, Oregon-based Bonavia Timber Company LLC, fdba Pacific Northwest Tree Farms LLC, filed for Chapter 11 bankruptcy (Bankr. D. Ore. Case No. 11-39459) on Nov. 1, 2011. The case has been reassigned to Judge Randall L. Dunn from Judge Trish M. Brown. Albert N. Kennedy, Esq., and Michael W. Fletcher, Esq., at Tonkon Torp, serve as the Debtor's counsel. In its petition, the Debtor estimated assets of $10 million to $50 million. CATALYST PAPER: Non-Binding Indication of Interest Due July 11 -------------------------------------------------------------- Catalyst Paper disclosed that a number of parties have expressed interest in participating in the court-approved sale and investor solicitation procedures (SISP). Potential bidders were required to submit certain information and an executed confidentiality agreement to Catalyst Paper by June 6, 2012. The material submitted will be considered when determining the parties that will move to the next stage of the SISP process. Parties proceeding to the next stage must submit a non-binding indication of interest by 5:00 pm (PST) on July 11, 2012. 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. CBS I LLC: Files for Chapter 11 in Las Vegas -------------------------------------------- CBS I, LLC, filed a bare-bones Chapter 11 petition in Las Vegas on June 7, 2012. CBS I, a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101(51B), disclosed $19.36 million in assets and $19.42 million in liabilities. The Debtor owns a Class A office building located at 10100 W. Charleston Blvd., in Las Vegas. The building is valued at $19 million and secures a $16.39 million debt to U.S. Bank National Association. A copy of the schedules filed with the petition is available at http://bankrupt.com/misc/nvb12-16833.pdf Zachariah Larson, Esq., at Marquis Aurbach Coffing, in Las Vegas, serves as counsel. A meeting under 11 U.S.C. Sec. 341(a) is set for July 12 at 1:00 p.m. CBS I LLC: Case Summary & 17 Largest Unsecured Creditors -------------------------------------------------------- Debtor: CBS I, LLC 3275 S. Jones Boulevard, #105 Las Vegas, NV 89146 Bankruptcy Case No.: 12-16833 Chapter 11 Petition Date: June 7, 2012 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Mike K. Nakagawa Debtor's Counsel: Zachariah Larson, Esq. MARQUIS AURBACH COFFING 10001 Park Run Drive Las Vegas, NV 89145 Tel: (702) 382-1170 Fax: (702) 382-1169 E-mail: cshurtliff@maclaw.com Scheduled Assets: $19,356,448 Scheduled Liabilities: $19,422,805 The petition was signed by Jeff Susa, manager. Debtor's List of Its 17 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Breslin Family Trust Member Loan $732,732 5525 Polaris Avenue, #B Las Vegas, NV 89118 Jeff Susa Member Loan $732,732 3275 S. Jones Boulevard, #105 Las Vegas, NV 89146 M&J Corrigan Family Trust Member Loan $732,732 10100 W. Charleston Boulevard, #110 Las Vegas, NV 89145 S&L Corrigan Family Trust Member Loan $732,732 10100 W. Charleston Boulevard, #110 Las Vegas, NV 89145 CenturyLink Business Expenses $172 City of Las Vegas Semi Annual Special $42,726 Assessments Bailey Kennedy Attorney Fees $30,933 ISS Facility Services ? Sanitors Business Expenses $14,007 NV Energy Business Expenses $10,405 Property Maintenance Services, Business Expenses $1,800 Inc. LMS Building Services Business Expenses $643 J & J Services Business Expenses $300 Interiorscapes, Inc. Business Expenses $250 ADT Business Expenses $210 Terminix Business Expenses $77 Cox Communications Business Expenses $65 Nevada Illumination, Inc. Business Expenses $59 CLIFFS CLUB: Wants Exclusivity Periods Extended to October ---------------------------------------------------------- Marie Beaudette at Dow Jones' DBR Small Cap reports that Cliffs Club & Hospitality Group Inc. is seeking to keep exclusive control over its Chapter 11 case through Oct. 1 as it works to win court approval of a plan that would hand control of the company to an investor consortium headed up by Carlile Group. Units of The Cliffs Communities, led by The Cliffs Club & Hospitality Group, Inc., doing business as The Cliffs Golf & Country Club, along with 10 affiliates, sought Chapter 11 protection (Bankr. D. S.C. Lead Case No. 12-01220) on Feb. 28, 2012. The Cliffs has eight premier, private master-planned residential communities, each to have its own world-class golf course. Approximately 3,734 lots have been sold. There are currently 1,385 finished homes, with 63 under construction. The properties for sale are owned by non-debtor DevCo entities. The Feb. 28 Debtors operate the exclusive membership clubs for golf, tennis, wellness and social activities at The Cliffs' communities in North and South Carolina. The clubs have 2,280 members, and there are 766 resigned members with refundable deposits totaling $37 million. The Debtors do not own the golf courses -- they only own or lease all the "core amenities" for the operation of the golf courses. Another affiliate, Keowee Falls Investment Group, LLC, filed a Chapter 11 petition (Bankr. D. S.C. Case No. 12-01399) in Spartanburg, South Carolina, on March 2, 2012. Travelers Rest- based Keowee Falls estimated at least $100 million in assets and liabilities of up to $50 million. BAY FRONT: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Bay Front Marina & Yacht Basin, LLC dba Bay Front Grill 96 Bryant Road Waretown, NJ 08758 Bankruptcy Case No.: 12-24675 Chapter 11 Petition Date: June 7, 2012 Court: United States Bankruptcy Court District of New Jersey (Trenton) Judge: Michael B. Kaplan Debtor's Counsel: David L. Bruck, Esq. GREENBAUM, ROWE, SMITH & DAVIS LLP P.O. Box 5600 Woodbridge, NJ 07095 Tel: (732) 549-5600 Fax: (732) 549-1881 E-mail: bankruptcy@greenbaumlaw.com Scheduled Assets: $1,211,000 Scheduled Liabilities: $886,079 A copy of the Company's list of its 20 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/njb12-24675.pdf The petition was signed by Keith Boyce, member. BLUEKNIGHT ENERGY: MSDC Owns 24% Common Units, 6% Pref. Units ------------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, MSDC Management, L.P., and MSD Torchlight Partners, L.P., disclosed that, as of May 31, 2012, they beneficially own 1,935,842 series A preferred units of Blueknight Energy Partners, L.P., representing 6.4% of the shares outstanding. A copy of the filing is available for free at: http://is.gd/cbacXN In a separate amended Schedule 13D filing, MSDC Management, L.P., and MSD Torchlight Partners, L.P., disclosed that, as of May 31, 2012, they beneficially own 5,512,786 common units representing 24.3% of the shares outstanding. A copy of the filing is available for free at http://is.gd/nXKiwW About Blueknight Energy Blueknight Energy Partners, L.P. (Pink Sheets: BKEP) -- http://www.bkep.com/-- provides integrated terminalling, storage, processing, gathering and transportation services for companies engaged in the production, distribution and marketing of crude oil and asphalt product. It provides services for the customers, and its only inventory consists of pipeline linefill and tank bottoms necessary to operate the assets. It has three operating segments: crude oil terminalling and storage services, crude oil gathering and transportation services, and asphalt services. The Company's balance sheet at Dec. 31, 2011, showed $304.75 million in total assets, $246.95 million in total liabilities, and $57.79 million in total partners' capital. * * * This concludes the Troubled Company Reporter's coverage of Blueknight until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. BON-TON STORES: BlackRock Discloses 4.9% Equity Stake ----------------------------------------------------- In an amended Schedule 13G filing with the U.S. Securities and Exchange Commission, BlackRock, Inc., disclosed that, as of May 31, 2012, it beneficially owns 844,953 shares of common stock of Bon-Ton Stores Inc. representing 4.98% of the shares outstanding. A copy of the filing is available for free at: http://is.gd/oFnqHY About Bon-Ton Stores The Bon-Ton Stores, Inc., with corporate headquarters in York, Pennsylvania and Milwaukee, Wisconsin, operates 276 department stores, which includes 11 furniture galleries, in 23 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner's, Boston Store, Carson Pirie Scott, Elder-Beerman, Herberger's and Younkers nameplates and, in the Detroit, Michigan area, under the Parisian nameplate. * * * In January 2012, Moody's Investors Service lowered The Bon-Ton Stores's corporate family and probability of default ratings. The rating outlook remains negative. "The downgrade of the Probability of Default Rating to Caa1 from B3 reflects the company's continued negative trends and sales and operating earnings" said Moody's Vice President Scott Tuhy. In early January 2012, Bon-Ton announced that comparable store sales for December declined by 0.7% and that its year-to-date comparable store sales decreased 2.8%. The company also lowered earning guidance, and it now expects EBITDA for fiscal 2011 will be in the range of $170-175 million, implying a low 20% decline in EBITDA in Q4 2011 compared to the prior years' fourth quarter. CHEMBULK NEW YORK: Singapore Proceedings Recognized by U.S. Court ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York recognized the foreign proceedings of Chembulk New York Pte Ltd., et al. The Court also ordered that the Republic of Singapore is the center of main interests of the Foreign Debtors, and accordingly the Singapore Proceeding is a "foreign main proceeding" pursuant to Section 1502(4) of the Bankruptcy Code. Cosimo Borrelli, as foreign representative of the Debtors in foreign proceedings, is also entitled to the discretionary relief expressly set forth in section 1521(a) and (b) of the Bankruptcy Code. About Chembulk New York Singapore-based PT Berlian Laju Tanker Tbk filed Chapter 15 bankruptcy petitions in New York for subsidiaries (Bankr. S.D.N.Y. Lead Case No. 12-11007) on March 14, 2012, to prevent creditors from seizing the company's vessels when they call on U.S. ports. Cosimo Borrelli, recently appointed vice president for restructuring for PT Berlian, signed the Chapter 15 petitions for Chembulk New York Pte Ltd and 12 other entities. The Berlian group operates 72 vessels, of which 50 are owned. In January, the Berlian Group violated covenants under a $685 million loan agreement. Creditors took steps to arrest certain vessels operated by companies in the Berlian Group. In order to prevent ship arrests and other collection efforts, the Berlian Group initiated proceedings in the High Court of the Republic of Singapore on March 12, 2012. The Singapore court entered orders prohibiting for three months any arrest of vessels or collection effort. The Berlian Group filed the Chapter 15 petitions to obtain entry of an order enjoining creditors from seizing vessels that are at port in the United States. The Debtors do not have assets in the U.S. other than the transitory basis vessels that are in the U.S. CONVERTED ORGANICS: Edward Gildea Elected to Board of Directors --------------------------------------------------------------- Converted Organics Inc. announced the results of its annual meeting of shareholders held on June 8, 2012. At the annual meeting, shareholders: * elected Edward Gildea to the Board of Directors; * ratified the appointment of MFA, LLP, as the Company's independent public accountant; * authorized the Board of Directors to implement a reverse stock split; * authorized the Board to abandon the reverse split; and * authorized the Company to amend its Certificate of Incorporation to increase the number of authorized shares of common stock from 500,000,000 to 1,000,000,000. "The Company is pleased with the results of today's Annual Meeting of Shareholders," said Edward J. Gildea, President and CEO of Converted Organics. "We appreciate the support shown by our shareholders." About Converted Organics Boston, Mass.-based Converted Organics Inc. utilizes innovative clean technologies to establish and operate environmentally friendly businesses. Converted Organics currently operates in three business areas, namely organic fertilizer, industrial wastewater treatment and vertical farming. After auditing the 2011 results, Moody, Famiglietti & Andronico, LLP, noted that the Company has suffered recurring losses and negative cash flows from operations and has an accumulated deficit that raises substantial doubt about its ability to continue as a going concern. Converted Organics reported a net loss of $17.98 million in 2011, compared with a net loss of $47.81 million in 2010. The Company's balance sheet at March 31, 2012, showed $7.18 million in total assets, $6.81 million in total liabilities and $367,679 in total stockholders' equity. CRYSTAL CATHEDRAL: New Owner Renames Church ------------------------------------------- NewsCore reports that Southern California's Crystal Cathedral was renamed Christ Cathedral by Roman Catholic Diocese of Orange, which acquired the cathedral for $57.6 million in February 2012. Crystal Cathedral Ministries is a Southern California-based megachurch founded by television evangelist Robert Schuller. The church, known for its television show "The Hour of Power." Mr. Schuller retired from his role as senior pastor of Crystal Cathedral in 2006. His daughter Sheila Schuller Coleman has been senior pastor since July 2009. Contributions declined 24% in 2009, in part on account of "unsettled leadership." Crystal Cathedral filed for Chapter 11 bankruptcy protection (Bankr. C.D. Calif. 10-24771) on Oct. 18, 2010. The Debtor disclosed $72,872,165 in assets and $48,460,826 in liabilities as of the Chapter 11 filing. Marc J. Winthrop, Esq., at Winthrop Couchot P.C. represents the Debtor. Todd C. Ringstad, Esq., at Ringstad & Sanders, LLP, represents the Official Committee of Unsecured Creditors. In November 2011, Crystal Cathedral won Court permission to sell its property to the Roman Catholic Diocese of Orange for $57.5 million. The Diocese beat a rival bid from Chapman University. The sale agreement provides that the congregation will have three years to find new premises. Chapman University, the secular bidder, was the preferred buyer as far as the church members are concerned, because Chapman would allow the ministry to continue to use the main buildings on the premises. It also offered the option of allowing church administrators to buy the property back at a later point. Chapman raised its bid to $59 million, but the Crystal Cathedral board still chose the Diocese. CYNERGY GROUP: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Cynergy Group, LLC 2393 S. Bateman Avenue Irwindale, CA 91010 Bankruptcy Case No.: 12-29748 Chapter 11 Petition Date: June 6, 2012 Court: United States Bankruptcy Court Central District of California (Los Angeles) Debtor's Counsel: Mette H. Kurth, Esq. ARENT FOX LLP 555 W Fifth St 48th Flr Los Angeles, CA 90013 Tel: (213) 629-7400 Fax: (213) 629-7401 E-mail: kurth.mette@arentfox.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by John S.M. Chang, managing member. DECOU LUMBER: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: DeCou Lumber Company, Inc. 8965 El Camino Real Atascadero, CA 93422 Bankruptcy Case No.: 12-12217 Chapter 11 Petition Date: June 5, 2012 Court: U.S. Bankruptcy Court Central District of California (Santa Barbara) Debtor's Counsel: Peter Susi, Esq. SUSI & GURA, A PROFESSIONAL CORP 7 W. Figueroa, 2nd Floor Santa Barbara, CA 93101-3191 Tel: (805) 965-1011 Fax: (805) 965-7351 E-mail: cheryl@susigura.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 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/cacb12-12217.pdf The petition was signed by Jerry W. DeCou, IV, president. DELTA PETROLEUM: Plan to Accomplish Deleveraging of Balance Sheets ------------------------------------------------------------------ Delta Petroleum Corporation, et al., submitted to the U.S. Bankruptcy Court for the District of Delaware a proposed Plan of Reorganization dated June 4, 2012. The Debtors will begin soliciting votes on the Plan following approval of the adequacy of the information in the Disclosure Statement. According to the Disclosure Statement, the Plan accomplishes a significant deleveraging of the Debtors' balance sheets through Reorganized Delta's membership in the Joint Venture Company, which was formed earlier by the Plan Sponsor, and through the cash payment drawn from the JV Company Credit Facility. As a result of these transactions, the Debtors will have a significantly reduced amount of debt following consummation of the Plan, and Reorganized Delta will become the owner of 33.34% of the membership interests in the Joint Venture Company. The holders of Noteholder Claims and the holders of General Unsecured Claims (other than those who elect to be "cashed out" at fifteen cents on the dollar) will receive their Pro Rata share of 100% of the New Common Stock of Reorganized Delta or such other treatment as may be agreed upon by the Reorganized Debtors and the Holder of such Allowed General Unsecured Claim and approved by the Bankruptcy Court. All Existing Delta Equity Interests will be canceled and the holders thereof will receive no value under the Plan. All of the Debtors' other creditors will retain their rights unimpaired by the consummation of the Plan. The Debtors maintain that commencement of the Plan maximizes value for the benefit of their stakeholders. The Debtors believe that through the Plan, holders of Allowed Claims will obtain a substantially greater recovery from the Estates of the Debtors than the recovery they would receive if the Debtors filed petitions under chapter 7 of the Bankruptcy Code. So long as either Class 4 or 5 (Noteholder Claims or General Unsecured Claims) votes in favor of the Plan, the Debtors intend to seek consummation of the Plan as quickly as possible. If one of Class 4 or Class 5 does not accept the Plan, the Debtors intend to seek confirmation under the "cram down" provisions of section 1129 of the Bankruptcy Code. The Debtors propose this treatment under the Plan: Class Claims and Interest Treatment ----- ------------------- --------- Class 1 DIP Facility Claims Paid in Full Class 3 Other Secured Claims Paid in Full Class 4 General Unsecured Claims Cash equal to 15% of claim amount or Pro Rata Share of the New Common Stock of Reorganized Delta Class 5 Noteholder Claims Pro Rata Share of the New Common Stock of Reorganized Delta Class 6 Intercompany Claims No Recovery Class 7 Existing Delta Equity No Recovery Interests Class 8 Securities Litigation Claims No Recovery Class 9 Intercompany Equity Interests Reinstated A full-text copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/DELTA_PETROLEUM_ds.pdf 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' 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. The U.S. Trustee told the bankruptcy judge that there was insufficient interest from creditors to form an official committee of unsecured creditors. Laramie Energy II LLC has been approved by the Court to serve as the sponsor for Delta's reorganization plan. DELTA PETROLEUM: Has Contribution Pact with Piceance & Laramie -------------------------------------------------------------- Delta Petroleum Corporation entered into a Contribution Agreement with Piceance Energy, LLC, and Laramie Energy II, LLC, pursuant to which, at closing, each of the Company and Laramie will contribute their assets, with certain exceptions, located in or pertaining to Mesa and Garfield Counties, Colorado, in exchange for 33.34% and 66.66%, respectively, of the membership interests in Piceance Energy. The assets to be contributed by the Company to Piceance Energy constitute substantially all of the assets of the Company. In addition, the Company and Laramie will each receive cash payments at the closing of the transaction of $75 million and $25 million, respectively, which will be paid from a draw against a credit facility in favor of Piceance Energy that will be secured by the contributed assets and the Company's and Laramie's membership interests in Piceance Energy. The cash payments are subject to adjustment at closing based on title and environmental defects, and subject to further adjustment post-closing based on a final settlement statement to be agreed upon between the Company and Laramie. The Contribution Agreement includes customary representations, warranties, covenants and indemnities by the parties. Each party's obligation to close the Contribution Agreement is conditioned upon, among other things: (i) the accuracy of the parties' representations and warranties as of the closing; (ii) the parties' performance, in all material respects, of their covenants and obligations; (iii) the absence of any material adverse effect; (iv) the absence of any law or order prohibiting the consummation of the transaction; (v) the occurrence of certain events by certain dates in connection with the Company's currently pending voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware; (vi) title and environmental defect adjustments being below certain thresholds; and (vii) the entry into an agreement between the Company and Piceance Energy pursuant to which the Company retains the economic benefit of the 5% working interest in certain wells contributed to Piceance Energy. Subject to satisfaction of the closing conditions, the transaction is expected to occur on or before Aug. 31, 2012. The effective date of the closing will be July 31, 2012, and all proceeds and certain customary operational costs and expenses attributable to the contributed assets will be apportioned between the parties according to that date. A copy of the Contribution Agreement is available for free at: http://is.gd/pLd9BC 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' 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. The U.S. Trustee told the bankruptcy judge that there was insufficient interest from creditors to form an official committee of unsecured creditors. Laramie Energy II LLC has been approved by the Court to serve as the sponsor for Delta's reorganization plan. DESERT INN: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Desert Inn Management Company, Ltd. 344 East Desert Inn Road Las Vegas, NV 89109 Bankruptcy Case No.: 12-16719 Chapter 11 Petition Date: June 5, 2012 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Linda B. Riegle Debtor's Counsel: Talitha B. Gray, Esq. GORDON & SILVER, LTD. 3960 Howard Hughes Parkway, 9th Floor Las Vegas, NV 89169 Tel: (702) 796-5555 E-mail: athalrose@gordonsilver.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 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/nvb12-16719.pdf The petition was signed by Michael S. Talbott, manager. DEWEY & LEBOEUF: Lessors Object to Proposed Cash Collateral Use --------------------------------------------------------------- Sara Randazzo at Connecticut Law Tribune reports a group of office equipment lessors are opposing Dewey & LeBoeuf's proposed use of cash collateral to fund its Chapter 11 bankruptcy, arguing that the approval of such an arrangement unfairly favors secured creditors and leaves unsecured creditors with little recourse if their bills are not paid. According to the report, the objections -- which also include a claim that the Dewey estate has already sold some of the property owned by the lessors -- suggest that things could get contentious at a hearing scheduled for June 13 at which Manhattan Bankruptcy Judge Martin Glenn will consider Dewey's final motion requesting the use of its cash collateral. The bankrupt firm's estate has proposed a budget of $8.6 million to fund the first three weeks of its wind-down. The money would come from cash used as collateral to offset money owed to JPMorgan Chase and a group of hedge funds. The report relates unsecured creditors argue that the cash belongs to more than just those parties, and that using it will leave others that have asserted claims in the bankruptcy unprotected. One of the lessors raising objections, Fidelity National Capital -- which does business as Winthrop Capital -- said in its motion filed Wednesday that it has had a contract with Dewey dating back to 2003, when it was still LeBoeuf, Lamb, Greene & MacRae. The report notes Winthrop entered into 10 equipment leases with Dewey, assigning the rights to many of those agreements to other entities, including CIT Finance, Fifth Third Bank, MassMutual Asset Finance, Banc of America Leasing & Capital, and SunTrust Leasing Corporation. Fifth Third Bank and Banc of America have also filed objections with the court. The report, citing court documents, says Winthrop is owed $6.7 million by the Dewey estate for the lease it controls, which says Dewey largely stopped paying its bills after March of this year. Winthrop and the other companies leased property to Dewey offices worldwide, including furniture, computer equipment, printers, fixtures, and telephone systems. Winthrop's filing says that even though the company still owns all of the property it leased to the firm over the years, Dewey sold off or reassigned property to other law firms in the weeks leading up to its bankruptcy, according to the report. The report says the proceeds from those sales include: $680,079 from Dechert for an office lease and equipment in Dubai and Tbilisi, Georgia; $6 million from Greenberg Traurig for, among other things, property and equipment in Poland; $4.1 million from Morgan, Lewis & Bockius for property and equipment in Russia and Kazakhstan; and an unspecified amount in Italy, where former Dewey partners have started their own firm in Dewey's former offices. The report adds Winthrop argues that any money related to its property that came from those sales should not qualify as cash collateral, but instead should be used to help repay Winthrop's debts. Fifth Third's motion, supported by Banc of America, also argues that any proceeds from the sale of the leased property, as well as any insurance proceeds related to the property, be excluded from the cash collateral. The report says there has been some confusion so far in the bankruptcy proceeding as to where the equipment lessors stand on Dewey's list of creditors. In its own log of the parties to which it owes money, Dewey lists Winthrop, SunTrust, and US Bancorp Equipment Finance -- another equipment lessor not involved in the recent motions -- as secured creditors with claims totaling more than $45 million. But Winthrop has argued that it should be considered an unsecured creditor, and in fact, the company is among three vendors selected by the U.S. trustee's office to serve on the official committee of unsecured creditors, which will represent the interests of all creditors asserting claims in the bankruptcy. About Dewey & LeBoeuf New York-based law firm Dewey & LeBoeuf LLP sought Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 12-12321) to complete the wind-down of its operations. The firm had struggled with high debt and partner defections. Dewey disclosed debt of $245 million and assets of $193 million in its chapter 11 filing late evening on May 29, 2012. Dewey & LeBoeuf was formed by the 2007 merger of Dewey Ballantine LLP and LeBoeuf, Lamb, Greene & MacRae LLP. At its peak, Dewey employed about 2,000 people with 1,300 lawyers in 25 offices across the globe. When it filed for bankruptcy, only 150 employees were left to complete the wind-down of the business. Dewey's offices in Hong Kong and Beijing are being wound down. The partners of the separate partnership in England are in process of winding down the business in London and Paris, and administration proceedings in England were commenced May 28. All lawyers in the Madrid and Brussels offices have departed. Nearly all of the lawyers and staff of the Frankfurt office have departed, and the remaining personnel are preparing for the closure. The firm's office in Sao Paulo, Brazil, is being prepared for closure and the liquidation of the firm's local affiliate. The partners of the firm in the Johannesburg office, South Africa, are planning to wind down the practice. The firm's ownership interest in its practice in Warsaw, Poland, was sold to the firm of Greenberg Traurig PA on May 11 for $6 million. The Pension benefit Guaranty Corp. took $2 million of the proceeds as part of a settlement. Judge Martin Glenn oversees the case. Albert Togut, Esq., at Togut, Segal & Segal LLP, represents the Debtor. Epiq Bankruptcy Solutions LLC serves as claims and notice agent. The petition was signed by Jonathan A. Mitchell, chief restructuring officer. JPMorgan Chase Bank, N.A., as Revolver Agent on behalf of the lenders under the Revolver Agreement, hired Kramer Levin Naftalis & Frankel LLP. JPMorgan, as Collateral Agent for the Revolver Lenders and the Noteholders, hired FTI Consulting and Gulf Atlantic Capital, as financial advisors. The Noteholders hired Bingham McCutchen LLP as counsel. The U.S. Trustee formed two committees -- one to represent unsecured creditors and the second to represent former Dewey partners. The creditors committee hired Brown Rudnick LLP led by Edward S. Weisfelner, Esq., as counsel. DEX ONE: Fails to Comply with NYSE's $1.00 Trading Price Rule ------------------------------------------------------------- Dex One Corporation received notification from the New York Stock Exchange that its average closing share price over a consecutive 30 trading-day period fell below the NYSE's minimum continued listing standard of $1.00 per share. Under NYSE rules, Dex One has until its next annual meeting of stockholders in May 2013 to satisfy the average share price requirement. Dex One has notified the NYSE that it will take steps to cure this deficiency within the prescribed timeframe. Until then, the Company's shares will continue to be listed and traded on the NYSE, subject to compliance with other NYSE continued listing standards. 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 March 31, 2012, showed $3.14 billion in total assets, $3.09 billion in total liabilities and $48.87 million in total shareholders' equity. * * * As reported 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. DEX ONE: Atish Banerjea to Resell 100,000 Common Shares ------------------------------------------------------- Dex One Corporation filed with the U.S. Securities and Exchange Commission a Form S-8 relating to the resale, from time to time, of up to 100,000 shares of the Company's common stock, $0.001 par value per share, by Atish Banerjea, senior vice president and chief technology officer. The selling stockholder acquired those shares pursuant to grants made under (i) a stand-alone restricted stock award agreement, dated Jan. 18, 2011, by and between Dex One Corporation and Atish Banerjea and (ii) a stand-alone nonqualified stock option agreement, dated Jan. 18, 2011, by and between Dex One Corporation and Atish Banerjea. The Company will not receive any proceeds from sales of the shares of the Company's common stock covered by this prospectus by the selling stockholder. Shares of the Company's common stock are listed on the New York Stock Exchange under the symbol "DEXO." On June 1, 2012, the last reported sale price of the Company's common stock was $0.92 per share. A copy of the filing is available for free at http://is.gd/cEbvMc 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 March 31, 2012, showed $3.14 billion in total assets, $3.09 billion in total liabilities and $48.87 million in total shareholders' equity. * * * As reported 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. DURRANT GROUP: Court Dismisses Bankruptcy Case ---------------------------------------------- Thonline.com reports that a federal court dismissed the Durrant Group's petition for bankruptcy last month, allowing creditors to pursue collection activities against the firm, which closed in April 2012. According to the report, two months ago, negotiations with potential buyers fell through, and the company closed the doors of its four remaining operations sites. Based in Dubuque, Iowa, The Durrant Group Inc., dba Durrant Media Five, is one of Iowa's largest architectural/engineering firms. The Company filed for Chapter 11 protection (Bankr. N.D. Iowa Case No. 12-00110) on Jan. 26, 2012. Judge Paul J. Kilburg presides over the case. Joseph A. Peiffer, Esq., at Day Rettig Peiffer, P.C., represents the Debtor. The Debtor estimated both assets and debts of between $1 million and $10 million. ENERGY CONVERSION: Adjournment Motion Denied, Procedures Approved ----------------------------------------------------------------- BankruptcyData.com reports that the U.S. Bankruptcy Court denied the motion filed by Energy Conversion Devices' official committee of unsecured creditors seeking to adjourn solicitation of voting on the Debtors' Second Amended Plan of Liquidation and terminate the Debtors' exclusive period for filing a Chapter 11 plan. BankruptcyData.com says the Court separately approved the Debtors' solicitation procedures for their Chapter 11 plan and scheduled a July 18, 2012 confirmation hearing. About Energy Conversion Energy Conversion Devices -- http://energyconversiondevices.com/ -- has a renowned 51 year history since its formation in Detroit, Michigan and has been a pioneer in materials science and renewable energy technology development. The company has been awarded over 500 U.S. patents and international counterparts for its achievements. ECD's United Solar wholly owned subsidiary has been a global leader in building-integrated and rooftop photovoltaics for over 25 years. The company manufactures, sells and installs thin-film solar laminates that convert sunlight to clean, renewable energy using proprietary technology. ECD filed for Chapter 11 protection (Bankr. E.D. Mich. Case No. 12-43166) on Feb. 14, 2012. Judge Thomas J. Tucker presides over the case. Aaron M. Silver, Esq., Judy B. Calton, Esq., and Robert B. Weiss, Esq., at Honigman Miller Schwartz & Cohn LLP, in Detroit, Michigan, represent the Debtor as counsel. The Debtor estimated assets and debts of between $100 million and $500 million as of the petition date. The petition was signed by William Christopher Andrews, chief financial officer and executive vice president. Affiliate United Solar Ovonic LLC filed a separate Chapter 11 petition on the same day (Bankr. E.D. Mich. Case No. 12-43167). Affiliate Solar Integrated Technologies, Inc., filed a petition for relief under Chapter 7 of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 12-43169). ENERGY CONVERSION: Shareholders Withdraw Official Committee Bid --------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Michigan authorized The Ad Hoc Shareholders Committee to withdraw its motion for the appointment of an Official Equity Committee in the Chapter 11 cases of Energy Conversion Devices, Inc., and United Solar Ovonic LLC. The scheduled June 6, 2012 hearing to consider the motion was canceled. About Energy Conversion Energy Conversion Devices -- http://energyconversiondevices.com/ -- has a renowned 51 year history since its formation in Detroit, Michigan and has been a pioneer in materials science and renewable energy technology development. The company has been awarded over 500 U.S. patents and international counterparts for its achievements. ECD's United Solar wholly owned subsidiary has been a global leader in building-integrated and rooftop photovoltaics for over 25 years. The company manufactures, sells and installs thin-film solar laminates that convert sunlight to clean, renewable energy using proprietary technology. ECD filed for Chapter 11 protection (Bankr. E.D. Mich. Case No. 12-43166) on Feb. 14, 2012. Judge Thomas J. Tucker presides over the case. Aaron M. Silver, Esq., Judy B. Calton, Esq., and Robert B. Weiss, Esq., at Honigman Miller Schwartz & Cohn LLP, in Detroit, Michigan, represent the Debtor as counsel. The Debtor estimated assets and debts of between $100 million and $500 million as of the petition date. The petition was signed by William Christopher Andrews, chief financial officer and executive vice president. Affiliate United Solar Ovonic LLC filed a separate Chapter 11 petition on the same day (Bankr. E.D. Mich. Case No. 12-43167). Affiliate Solar Integrated Technologies, Inc., filed a petition for relief under Chapter 7 of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 12-43169). ENERGY CONVERSION: Creditors Seek Plan Hearing Adjournment ---------------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 cases of Energy Conversion Devices, Inc., and United Solar Ovonic LLC., asks the U.S. Bankruptcy Court for the Eastern District of Michigan to use its discretion to postpone the solicitation date to June 22, 2012, reschedule the confirmation hearing and the voting and plan objection deadlines in relation to the Debtors' First Amended Joint Plan of Liquidation. The confirmation hearing is set for June 27, 2012. Objections, if any, are due June 22. According to the Creditors Committee, though the case is nearing its final stages, there are still several contingencies which need to be resolved in order for the Committee or its ECD and USO Sub- Committees to be able to recommend whether its constituents must vote in favor of the Debtors' Amended Plan. First, the Bar Date has not yet passed. Furthermore the sale of the Debtors' solar business is being liquidated with a final auction occurring before the end of June, absent a private sale before that date. The Committee notes that once the Committee and the other parties in the case know both the extent of the claims and the value of the solar assets, the Committee and the Sub-Committees will be better able to determine whether to recommend that creditors vote in favor of the Amended Plan, which provides for substantive consolidation of the estates, or potentially, if allowed by this Court, an alternative separate liquidation plan either solicited simultaneously with the Amended Plan or solicited separately thereafter. About Energy Conversion Energy Conversion Devices -- http://energyconversiondevices.com/ -- has a renowned 51 year history since its formation in Detroit, Michigan and has been a pioneer in materials science and renewable energy technology development. The company has been awarded over 500 U.S. patents and international counterparts for its achievements. ECD's United Solar wholly owned subsidiary has been a global leader in building-integrated and rooftop photovoltaics for over 25 years. The company manufactures, sells and installs thin-film solar laminates that convert sunlight to clean, renewable energy using proprietary technology. ECD filed for Chapter 11 protection (Bankr. E.D. Mich. Case No. 12-43166) on Feb. 14, 2012. Judge Thomas J. Tucker presides over the case. Aaron M. Silver, Esq., Judy B. Calton, Esq., and Robert B. Weiss, Esq., at Honigman Miller Schwartz & Cohn LLP, in Detroit, Michigan, represent the Debtor as counsel. The Debtor estimated assets and debts of between $100 million and $500 million as of the petition date. The petition was signed by William Christopher Andrews, chief financial officer and executive vice president. Affiliate United Solar Ovonic LLC filed a separate Chapter 11 petition on the same day (Bankr. E.D. Mich. Case No. 12-43167). Affiliate Solar Integrated Technologies, Inc., filed a petition for relief under Chapter 7 of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 12-43169). ENERGY CONVERSION: Summit Wants Equipment Excluded from Sale List ----------------------------------------------------------------- Summit Funding Group, asks the U.S. Bankruptcy Court for the Eastern District of Michigan to deny Energy Conversion Devices, Inc., and United Solar Ovonic LLC's motion to authorize the sale of substantially all of the Debtors' equipment. Summit Funding relates that it is the owner of certain Dell and other computer equipment. Pursuant to Lease Agreement No. 2380, Summit Funding leased the equipment to the Debtor on Aug. 14, 2008, for a term to begin on Sept. 30, 2008, and terminating 36 months thereafter on Sept. 30, 2011. A financing statement was filed with the State of Michigan Secretary of State memorializing the lease on Aug. 27, 2008. On July 30, 2011, the Debtor served notice to terminate the lease and requested buyout pricing and pricing for one further year of leasing. Summit Funding requests that the sale be prohibited unless or until the equipment hereinbefore named is deleted from the sale. As reported in the Troubled Company Reporter on June 4, 2012, the Debtors requested for the Court to authorize the sale of substantially all of the machinery and equipment located at the Debtors' remaining facilities: 1. 3800 Lapeer Road, Auburn Hills, Michigan; 2. 10 Clark Road, Battle Creek, Michigan; 3. 1 and 2 Solar Parkway, Greenville, Michigan; 4. Calle Veccinal 8755 Colonia El Tecolote, Tijuana, MX; and 5. 1100 and 1104 Maple Road, Troy, Michigan. The Debtor did not identify stalking-horse bidders for the assets. In order to maximize the value of the Debtors' machinery and equipment, the Debtors have retained auctioneers with experience in solar industry and large chapter 11 bankruptcy proceedings to conduct auctions of the Debtors' machinery and equipment. The Debtors and auctioneers are in the process of taking inventory of the equipment. The Debtors will show final catalog of the equipment no later than five days before the first day bidding begins at the auction. The Debtors propose this timeline for the auction: June 19 - 21: Online/onsite auction sale for the Equipment located at Calle Veccinal 8755 Colonia El Tecolote, Tijuana, MX (the Mexican Facility) and at www.hilcoind.com/sales June 26 - 28: Online/onsite auction sale for the remainder of the equipment at the facilities, excluding the Mexican Facility, and at www.hilcoind.com/sales About Energy Conversion Energy Conversion Devices -- http://energyconversiondevices.com/ -- has a renowned 51 year history since its formation in Detroit, Michigan and has been a pioneer in materials science and renewable energy technology development. The company has been awarded over 500 U.S. patents and international counterparts for its achievements. ECD's United Solar wholly owned subsidiary has been a global leader in building-integrated and rooftop photovoltaics for over 25 years. The company manufactures, sells and installs thin-film solar laminates that convert sunlight to clean, renewable energy using proprietary technology. ECD filed for Chapter 11 protection (Bankr. E.D. Mich. Case No. 12-43166) on Feb. 14, 2012. Judge Thomas J. Tucker presides over the case. Aaron M. Silver, Esq., Judy B. Calton, Esq., and Robert B. Weiss, Esq., at Honigman Miller Schwartz & Cohn LLP, in Detroit, Michigan, represent the Debtor as counsel. The Debtor estimated assets and debts of between $100 million and $500 million as of the petition date. The petition was signed by William Christopher Andrews, chief financial officer and executive vice president. Affiliate United Solar Ovonic LLC filed a separate Chapter 11 petition on the same day (Bankr. E.D. Mich. Case No. 12-43167). Affiliate Solar Integrated Technologies, Inc., filed a petition for relief under Chapter 7 of the Bankruptcy Code (Bankr. E.D. Mich. Case No. 12-43169). GARY PHILLIPS: July 3 Hearing on Turnover of Cash Collateral ------------------------------------------------------------ Regions Bank asks the U.S. Bankruptcy Court for the Eastern District of Tennessee to direct Gary Phillips Construction, LLC, to turnover of cash collateral, and disburse of sale proceeds. According to Regions Bank, pursuant to its Deed of Trust and Assignment of Rents, the Bank has liens on multiple parcels of real property, well as the Debtor's cash collateral. On Oct. 24, 2011, the Court granted Regions Bank's request for relief of automatic stays, for adequate protection, and to prohibit or condition use of the cash collateral. Regions Bank asserts that prior to obtaining relief from the stay, certain real properties that were encumbered by the Bank's Deed of Trust were sold, including 421 Brookside Drive, Elizabethton, Tennessee and 482 Grovemont Place, Piney Flats, Tennessee. The foregoing sales produced excess proceeds of $4,286 and $74,099, respectively, with said amounts being paid into cash collateral rather than to the Bank; however, said amounts remain impressed with the Bank's lien given that each parcel secures all of the Debtor's obligations to the Bank. The Bank relates that the foregoing amounts represent the proceeds of the sale of the Bank's collateral. The Bank requests for the disbursement of funds in the Debtor's possession that are attributable to, or proceeds from the sale of Regions' collateral properties, plus interest, including all amounts attributable to the sales because of the Debtor's failure to submit a Plan, the lack of any real prospect for a successful reorganization, and the Debtor's declining operating account balance. At the behest of Gary Phillips Construction, LLC, the U.S. Bankruptcy Court for the Eastern District of Tennessee continued until July 3, 2012, at 9 a.m., the hearing to consider Gary Phillips' response to Regions Bank's motion for turnover of cash collateral and disbursement of sale proceeds. A June 5 hearing on the Debtor's continued access to the cash collateral was held and an agreed order will be tendered. Previously, the Debtor requested for authorization to use property in the nature of cash collateral. As adequate protection from any diminution in value of the lenders' collateral, the Debtor will grant Bank of Tennessee, Citizens Bank, Commercial Bank, First Bank & Trust, Regions Bank, Tri-Summit Bank, TruPoint Bank, and Probuild Company, LLC, replacement liens in all assets of the estate. About Gary Phillips Construction Piney Flats, Tennessee-based Gary Phillips Construction, LLC, filed for Chapter 11 bankruptcy protection (Bankr. E.D. Tenn. Case No. 10-53097) on Dec. 3, 2010. Fred M. Leonard, Esq. -- fredmleonard@earthlink.net -- in Bristol, Tennessee, serves as the Debtor's counsel. The Debtor tapped Wayne Turbyfield as accountant. The Debtor tapped the law firm of Bearfield & Associates as special counsel. The Court denied the application to employ Crye-Leike Realtors as realtor. In its schedules, the Debtor disclosed $13,255,698 in assets and $7,614,399 in liabilities as of the Petition Date. Daniel M. McDermott, the U.S. Trustee for Region 8, appointed six creditors to serve on an Official Committee of Unsecured Creditors in the Debtor's case. Dean B. Farmer, Esq., at Hodges, Doughty & Carson, PLLC, serves as the committee's counsel. GENON ENERGY: Moody's Corrects December 16 Ratings Release ---------------------------------------------------------- Moody's Investors Service issued a correction to the December 16, 2011 ratings release of Genon Energy, Inc. Moody's has affirmed the ratings of Genon Energy, Inc. (GEN, B2 Corporate Family Rating, B2 Senior Secured Bank Credit Facility, B3 Senior Unsecured, SGL-1) and its subsidiaries GenOn Americas Generation, LLC (GENAG, B3 Senior Unsecured) and GenOn Mid- Atlantic, LLC (GENMA, Ba1 Senior Secured) and has revised their outlooks to negative from stable. Concurrently, Moody's has placed the Ba1 senior secured rating of GenOn REMA, LLC (GREMA) under review for possible downgrade. "Low gas prices combined with upcoming environmental regulations will create headwinds for the GenOn family and will have a disproportionate impact on GREMA, as a substantial portion of GREMA's coal-fired power generation fleet is unscrubbed," said Bill Hunter, VP and Senior Analyst. "GEN's strong liquidity will be an important support for its ratings during the lean years of CSAPR". GEN's B2 Corporate Family Rating is based on a diversified portfolio of power plants, a meaningful percentage of hedged and contracted revenues, an apparently successful merger integration, and strong liquidity combined with the stated importance of liquidity to senior management, balanced against high leverage, dependence on coal fired power plants in PJM for a majority of cash flows, volatile power prices that appear on a downward trend due to the impact of shale gas, and an expectation of decreasing generation revenues due to increasingly stringent environmental regulation. The Cross State Air Pollution Rules (CSAPR) are expected to substantially decrease generation revenues at GEN (and especially GREMA) starting in 2012, in part due to GEN's stated strategy of banking 2012 and 2013 credits for sale/use in 2014, when emissions allocations will decrease and monetary penalties for non- compliance will be much higher. Since CSAPR will not prevent plants from bidding into capacity markets, it is not by itself expected to cause significant retirements. Unlike CSAPR, the Hazardous Air Pollutants Maximum Available Technology rules (HAPs- MACT), currently expected to be finalized in December, 2011 with effectiveness in January, 2015, would require compliance through controls rather than purchase of emissions. As currently drafted, the rules would cover not only mercury and heavy metals, but also hydrochloric acid and micro-particulate emissions, which would likely make CSAPR allowances of little value once the HAPs-MACT rules are fully effective. Moody's currently estimates that most of GEN's un-scrubbed coal capacity will be retired upon effectiveness of the HAPs-MACT rules. It is possible that higher capacity prices for GEN's remaining plants may offset consolidated capacity and generation revenue reductions related to closed units. However, for GREMA, Moody's estimates the retirements would represent about 68% of its coal capacity and 36% of its total capacity, so Moody's would expect a reduction in GREMA's capacity revenues post-HAPs-MACT. GENMA, by contrast, has invested over $1.5 billion in environmental upgrades over the past decade, and it is expected to continue its position as the group's main cash flow driver. Moody's review of GREMA will focus on how decreased cash flow generation and possible plant retirements might alter the effective priority of claims for GREMA's senior secured debt relative to other debt in the GenOn family in Moody's loss given default (LGD) analysis. The lease debt at GENMA and the lease debt at GREMA have historically been viewed as similar, as both benefit from relatively strong structural elements, including a cash distribution test and liens on certain collateral. Moody's had viewed some of the factors that drove differences in their respective cash flows in recent years as potentially temporary, including cyclically low power prices and East-West PJM pricing differentials. By contrast, the expected plant retirements at GREMA due to CSAPR and HAPs-MACT appear likely to cause a permanent change in collateral valuations that could be the catalyst for a possible multi-notch downgrade at GREMA. The negative outlooks for GEN, GENMA and GENAG reflect the impact of shale gas on power prices and the potential for a long-term compression of coal fired generators' gross margins, while acknowledging that GEN has prepared itself to withstand a multi- year period of low power prices by husbanding its liquidity and reducing costs, and that GENMA's fleet is relatively well positioned in terms of location and environmental compliance. Ratings Placed Under Review for Downgrade: Issuer: GenOn REMA, LLC Senior Secured: Ba1, LGD -- 15% Outlook: RUR-Down Ratings Affirmed with Revised Outlook: Issuer: Genon Energy, Inc. Corporate Family Rating: B2 Probability of Default Rating: B2 Speculative Grade Liquidity Rating: SGL-1 Senior Secured Bank Facility: B2 Senior Unsecured: B3 Outlook: Revised to Negative from Stable Issuer: GenOn Americas Generation, LLC Senior Unsecured: B3 Outlook: Revised to Negative from Stable Issuer: GenOn Mid-Atlantic, LLC Senior Secured: Ba1, LGD 2 -- 15% Outlook: Revised to Negative from Stable LGD Ratings Assigned/Adjusted: Issuer: Genon Energy, Inc. Senior Secured Bank Facility: Assigned LGD 3 -- 45% Senior Unsecured: Adjusted to LGD 5 -- 73% from LGD 4 -- 69% Issuer: GenOn Americas Generation, LLC Senior Unsecured: Adjusted to LGD 5 -- 73% from LGD 5 -- 86% Outlook: Revised to Negative from Stable In light of the negative outlook at GEN and the review for possible downgrade at GREMA, limited prospects exists for GEN's ratings to be upgraded in the intermediate term. Longer-term, GEN's ratings could be upgraded if there were a material improvement in forward capacity prices and/or energy prices (and especially the dark spread) that could be locked in, such that CFO pre-WC/Debt would be expected to exceed 10% and FCF/Debt would be expected to be flat or positive on a sustainable basis. GEN's ratings could be downgraded if environmental regulations were to materially increase/accelerate Capex or expected plant shutdowns, if the liquidity cushion were materially eroded or management were to change its policy of maintaining a robust cushion. In addition, ratings could be downgraded if Moody's expectation of sustained cash flows were to change (for instance from decreases in forward power/capacity prices), such that CFO pre-WC/Debt would be expected to be lower than 5% and FCF/Debt would be expected to be negative 10% or worse on a sustained basis. GenOn Energy Inc., based in Houston, Texas, is a US merchant power holding company that was formed in December, 2010 from the merger of Mirant Corporation and Reliant Resources Inc. The principal methodology used in these ratings was Unregulated Utilities and Power Companies published in August 2009. GOODMAN NETWORKS: Moody's Reviews 'B2' CFR for Downgrade -------------------------------------------------------- Moody's Investors Service has placed the ratings of Goodman Networks Inc. on review for downgrade as the company's delayed filing of fiscal year 2011 and Q1 2012 financial results may trigger an event of default under its credit agreement. The review is based on Moody's concerns that an extended period to resolve the issue could impair its negotiations with its creditors to extend waivers of the technical default it has been operating under. Moody's expects Goodman to resolve its audit restatement issues over the next three months and anticipates concluding the review within that timeframe. Issuer: Goodman Networks, Inc. On Review for Possible Downgrade: Probability of Default Rating, Placed on Review for Possible Downgrade, currently B2 Corporate Family Rating, Placed on Review for Possible Downgrade, currently B2 US$225M 12.125% Senior Secured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently B2 Outlook Actions: Outlook, Changed To Rating Under Review From Stable Ratings Rationale Goodman's B2 corporate family rating considers the relatively high business risks associated with the small scale of its business of providing outsourced engineering and infrastructure services primarily to large communications and technology companies in the US. The rating also reflects Goodman's significant customer concentration, key-man and project execution risks, and exposure to the capital expenditure cycles of its customers, which are represented largely by AT&T and Alcatel-Lucent. In addition, as outsourcing of services forms an integral component of the company's revenue base, Goodman needs to deliver more cost effective alternatives than its larger and better capitalized customers can perform in-house. Moody's also notes that the delay in new contract wins and slow down in AT&T capital spending also elevate leverage in the near term which further pressures the ratings. These risks are offset by Goodman's recent contract wins from other carriers such as Sprint and Windstream which will allow the company to diversify its revenues away from AT&T and Alcatel- Lucent. In addition, Goodman has been generating greater than anticipated free cash flow as the company decides whether to proceed with its Jupiter 2 project with Alcatel-Lucent which would have been cash flow consuming during the first few years of the contract. Moody's review will focus on the timeframe and resolution for Goodman to address its audit issues and internal control items addressed by its previous accountants. The delay in the filing of the fiscal year 2011 results is due to audit restatement disputes between its former auditor, BKD and current auditor KPMG, regarding categorizing about $5 million in earnings in 2010 vs. 2011. The waiver of event of default that the company has obtained from its revolving credit facility lenders is set to expire on June 15, 2012 and the company is in the process of negotiating an extension of the waiver. Should the company fail to extend the waiver, it will not be able to gain access the revolver. Moody's recognizes that the company's ample cash balances at the end of the first quarter 2012 provides near-term liquidity, but given the high working capital swings in its operations, maintaining the revolver availability is critical to support the credit and the rating. The indenture regulating the existing $225 million senior secured notes also treats the delay of filings as an event of default if holders of at least 25% of the aggregate principal amount decide to call it a default. Moody's could lower Goodman's ratings if the company fails to obtain the necessary waiver or prevent its bondholders from declaring an event of default due to the delay in delivery of the financial statements. Ratings could also come under downward pressure should adjusted Debt/ EBITDA be sustained at around 4.5x, and the company's liquidity is strained such that its revolving credit facility is largely drawn for extended periods. The ratings could be confirmed if Goodman is able to resolve its audit problems over the next three months and obtain an extension of the waiver from its creditors. The principal methodology used in rating Goodman Networks, Inc was the Global Business & Consumer Service Industry Methodology published in October 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Goodman Networks Inc., headquartered in Plano, TX, is a technological service provider to wireless and wireline carriers throughout the United States. Goodman provides cell site builds, upgrades, and professional services to maintain and improve existing networks. The Company's primary customer is AT&T, and Goodman executes projects for AT&T in seven major markets. GRIFFIN DEVELOPMENT: Voluntary Chapter 11 Case Summary ------------------------------------------------------ Debtor: Griffin Development, LLC 11100 Astronaut Blvd. Orlando, FL 32837 Bankruptcy Case No.: 12-07732 Chapter 11 Petition Date: June 6, 2012 Court: United States Bankruptcy Court Middle District of Florida (Orlando) Debtor's Counsel: Kenneth D. Herron, Jr., Esq. WOLFF, HILL, MCFARLIN & HERRON, P.A. 1851 West Colonial Drive Orlando, FL 32804 Tel: (407) 648-0058 Fax: (407) 648-0681 E-mail: kherron@whmh.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Kathryn Peters, managing member. HAWKER BEECHRAFT: Purchase Offers Won't Be Made Public ------------------------------------------------------ Molly McMillin at the Wichita Eagle reports parties interested in bidding on Hawker Beechcraft had until last week to submit the documentation on their bids. According to the report, the bids will not be made public as part of the company's Chapter 11 bankruptcy filing. Hawker Beechcraft spokeswoman Nicole Alexander said she did not have more information to provide. The report relates several companies have been rumored as interested in portions of Hawker Beechcraft's business. In April, Scott Donnelly, Textron chairman and CEO, told analysts that his company is keeping an eye on Hawker Beechcraft. An executive for Brazil-based Embraer also has expressed interest. It's not known whether either company has submitted a bid. The report notes Hawker expects to emerge from bankruptcy by the end of the year as an independent company. About Hawker Beechcraft Hawker Beechcraft Inc., a designer and manufacturer of light and medium-sized jet, turboprop and piston aircraft, filed for Chapter 11 reorganization together with 17 affiliates (Bankr. S.D.N.Y. Lead Case No. 12-11873) on May 3, 2012, having already negotiated a plan that eliminates $2.5 billion in debt and $125 million of annual cash interest expense. The plan, to be filed by June 30, will give 81.9% of the new stock to holders of $1.83 billion of secured debt, while 18.9% of the new shares are for unsecured creditors. The proposal has support from 68% of secured creditors and holders of 72.5% of the senior unsecured notes. Hawker is 49%-owned by affiliates of Goldman Sachs Group Inc. and 49%-owned by Onex Corp. 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. Other claims include pensions underfunded by $493 million. Hawker's legal representative is Kirkland & Ellis LLP, its financial advisor is Perella Weinberg Partners LP and its restructuring advisor is Alvarez & Marsal. Epiq Bankruptcy Solutions LLC is the claims and notice agent. Sidley Austin LLP serves as legal counsel and Houlihan Lokey Howard & Zukin Capital Inc. serves as financial advisor to the DIP Agent and the Prepetition Agent. Wachtell, Lipton, Rosen & Katz represents an ad hoc committee of senior secured prepetition lenders holding 70% of the loans. Milbank, Tweed, Hadley & McCloy LLP represents an ad hoc committee of holders of the 8.500% Senior Fixed Rate Notes due 2015 and 8.875%/9.625% Senior PIK Election Notes due 2015 issued by Hawker Beechcraft Acquisition Company LLC and Hawker Beechcraft Notes Company. The members of the Ad Hoc Committee -- GSO Capital Partners, L.P. and Tennenbaum Capital Partners, LLC -- hold claims or manage accounts that hold claims against the Debtors' estates arising from the purchase of the Senior Notes. Deutsche Bank National Trust Company, the indenture trustee for senior fixed rate notes and the senior PIK-election notes, is represented by Foley & Lardner LLP. An Official Committee of Unsecured Creditors appointed in the case has selected Daniel H. Golden, Esq., and the law firm of Akin Gump Strauss Hauer & Feld LLP as legal counsel. HORIZON LINES: Names Sam Woodward as President and CEO ------------------------------------------------------ Horizon Lines, Inc., announced that Samuel A. Woodward has joined the company as President and Chief Executive Officer and has been appointed to the Company's Board of Directors, effective June 7, 2012. Mr. Woodward succeeds Stephen H. Fraser, who has served as interim President and CEO since March 2011, and who will also step down from the Company's Board of Directors, effective June 7, 2012. "We are delighted that Sam has chosen to join Horizon Lines as President and CEO," said Jeffrey A. Brodsky, Chairman of the Board of Directors. "Sam brings extensive transportation and logistics experience, and is known for his leadership abilities as a business strategist focused on operational transformation and excellence. He has a strong track record of success in a career that has spanned multiple companies over more than 30 years. Sam's proven leadership abilities will be an asset to management and the Board, as Horizon Lines moves forward in the years ahead. "We also want to thank Stephen for his leadership of Horizon Lines as interim President and CEO over the past 15 months," Mr. Brodsky said. "Stephen successfully shepherded Horizon through a very challenging period. We wish Stephen well in his future endeavors and we are confident this transition will be a seamless one for our customers and other stakeholders." Mr. Woodward, 63, joins Horizon Lines from Traffic Tech Inc., an international freight forwarder, where he held several executive leadership roles. He also served as a managing director of Bengur Bryan & Co., a middle market investment bank, where since 2008 he headed the firm's Transportation and Business Process Outsourcing Practice. From 2004 to 2008, Mr. Woodward was Chairman, President and CEO of Gemini Air Cargo, Inc. Prior to Gemini, Mr. Woodward was president of SAW Investment Services, his own investment firm, where he oversaw investment and management services in the U.S. freight- and logistics-based technology markets. From 1994 to 1999, Mr. Woodward served at YRC Worldwide as Senior Vice President, Operations and Planning, managing operations and strategy of the Company's portfolio of transportation and logistics companies. "I look forward to working with the many talented and dedicated associates and stakeholders of Horizon Lines, as we move forward to grow the business in our three core trade lanes," Mr. Woodward said. Pursuant to the employment agreement, Mr. Woodward will serve as President and CEO until June 30, 2015. The Agreement provides that Mr. Woodward will receive an annual base salary of $600,000, subject to periodic increases as determined by the Board. For 2012, Mr. Woodward will receive a cash bonus of no less than $200,000, even if the goals established by the Board are not met. The 2012 bonus may be up to 133% of the amount of base salary paid to Mr. Woodward during 2012 if Company financial performance meets or exceeds certain goals that the Board has established. In later years, Mr. Woodward will be eligible to receive a performance bonus of less than the 100% target and up to 133% of the amount of his annual base salary depending upon whether performance targets established by the Board or the Compensation Committee of the Board for that year have been partially met, met, or exceeded. Mr. Woodward will also receive 3,000,000 equity incentive awards. One half of the equity incentive awards will vest if Mr. Woodward remains in continuous employment with the Company on the vesting dates determined by the Board. The other half of the equity incentive awards will vest at various times during the term of the Agreement if Mr. Woodward remains in continuous employment with the Company and certain performance goals established by the Board or the Compensation Committee have been met. Departure of President and CEO Stephen H. Fraser stepped down as Interim President and Chief Executive Officer of the Company, effective as of June 7, 2012. Mr. Fraser also resigned from the Board effective as of June 7, 2012. Mr. Fraser will remain an employee through June 12, 2012, to support the leadership transition. All 1,224 shares of Mr. Fraser's unvested, restricted stock became fully vested in connection with his resignation from the Board. On June 7, 2012, the Company entered into a Consulting Agreement with Mr. Fraser, whereby the Company will retain Mr. Fraser as a consultant effective June 12, 2012, for a period of one year. Mr. Fraser will provide the consulting services requested by the Company and will be paid $525 per hour for those consulting services. Annual Stockholder Meeting Results At the Company's 2012 annual meeting, shareholders elected Mr. Brodsky, Kurt M. Cellar and David N. Weinstein Class I Directors, and ratified the appointment of Ernst & Young, LLP, as the Company's independent registered public accounting firm for the fiscal year ending Dec. 23, 2012. Additionally, shareholders provided a non-binding advisory vote approving the compensation paid to the Company's named executive officers. About Horizon Lines Charlotte, N.C.-based Horizon Lines, Inc. (NYSE: HRZ) is the nation's leading domestic ocean shipping and integrated logistics company. The Company owns or leases a fleet of 20 U.S.-flag containerships and operates five port terminals linking the continental United States with Alaska, Hawaii, Guam, Micronesia and Puerto Rico. The Company provides express trans-Pacific service between the U.S. West Coast and the ports of Ningbo and Shanghai in China, manages a domestic and overseas service partner network and provides integrated, reliable and cost competitive logistics solutions. Horizon Lines reported a net loss of $229.41 million in 2011, a net loss of $57.97 million in 2010, and a net loss of $31.27 million in 2009. Refinancing The Company was not in compliance with the maximum senior secured leverage ratio and the minimum interest coverage ratio under its Senior Credit Facility at the close of its third fiscal quarter ended Sept. 25, 2011. Non-compliance with these financial covenants constituted an event of default, which could have resulted in acceleration of the maturity. None of the indebtedness under the Senior Credit Facility or Notes was accelerated prior to the completion of a comprehensive refinancing on Oct. 5, 2011. The Senior Credit Facility and 99.3% of the 4.25% Convertible Senior Notes were repaid as part of the refinancing. In addition, as a result of the completion of the refinancing, the short-term obligations under the Senior Credit Facility, the Notes and the Bridge Loan have been classified as long-term debt. As a result of the efforts to refinance the Company's debt and the 2011 amendments to the Senior Credit Facility, the Company paid $17.3 million in financing costs and recorded a loss on modification of debt of $0.6 million during 2011. The Company's balance sheet at March 25, 2012, showed $640.74 million in total assets, $828.54 million in total liabilities, and a $187.79 million total stockholders' deficiency. * * * As reported by the TCR on Aug. 26, 2011, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Horizon Lines Inc. to 'SD' from 'CCC'. The rating action on Horizon Lines follow the company's decision to defer the interest payment on its $330 million senior convertible notes due August 2012, exercising the 30-day grace period. "Under our criteria, we view failure to make an interest payment within five business days after the due date for payment a default, regardless of the length of the grace period contained in an indenture," said Standard & Poor's credit analyst Funmi Afonja. HOUGHTON MIFFLIN: Taps PwC as Auditor, KMPG as Tax Consultant ------------------------------------------------------------- BankruptcyData.com reports that Houghton Mifflin Harcourt Publishing filed with the U.S. Bankruptcy Court motions to retain: * PricewaterhouseCoopers (Contact: Gregory T. Grobstein) as independent auditor and accounting advisor for a fixed fee of $100,000; and * KPMG (Contact: William W. Potter) as tax compliance and tax consultant at these hourly rates: partner at $513 to $700, managing director at $510 to $644, senior manager/director at $435 to $618, manager at $369 to $537, senior associate at $240 to $455, associate at $225 to $260 and paraprofessional at $99 to $179. About Houghton Mifflin Houghton Mifflin Harcourt Publishers Inc., headquartered in Boston, Massachusetts, is one of the three largest U.S. education publishers focusing on the K-12 market with roughly $1.3 billion of revenue for fiscal year ended December 2011. Houghton Mifflin Harcourt and its affiliates filed a prepackaged Chapter 11 reorganization (Bankr. S.D.N.Y. Lead Case No. 12-12171) on May 21, 2012. Paul, Weiss, Rifkind, Wharton & Garrison LLP has been tapped as bankruptcy counsel. Blackstone Advisory Services, LP, is the financial advisor. Kurtzman Carson Consultants LLC is the claims and notice agent. The Debtor disclosed assets of $2.68 billion and debt totaling $3.535 billion as of the Chapter 11 filing. HOVNANIAN ENTERPRISES: Swings to $1.8MM Net Income in Fiscal Q2 --------------------------------------------------------------- Hovnanian Enterprises, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $1.80 million on $341.69 million of total revenues for the three months ended April 30, 2012, compared with a net loss of $72.66 million on $255.09 million of total revenues for the same period during the prior year. The Company reported a net loss of $16.46 million on $611.29 million of total revenues for the six months ended April 30, 2012, compared with a net loss of $136.81 million on $507.66 million of total revenues for the same period a year ago. The Company's balance sheet at April 30, 2012, showed $1.51 billion in total assets, $1.97 billion in total liabilities, and a $454.78 million total deficit. A copy of the Form 10-Q is available for free at: http://is.gd/7YUmdK About Hovnanian Enterprises Red Bank, New Jersey-based Hovnanian Enterprises, Inc. (NYSE: HOV) -- http://www.khov.com/-- founded in 1959 by Kevork S. Hovnanian, is one of the nation's largest homebuilders with operations in Arizona, California, Delaware, Florida, Georgia, Illinois, Kentucky, Maryland, Minnesota, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and West Virginia. The Company's homes are marketed and sold under the trade names K. Hovnanian Homes, Matzel & Mumford, Brighton Homes, Parkwood Builders, Town & Country Homes, Oster Homes and CraftBuilt Homes. As the developer of K. Hovnanian's Four Seasons communities, the Company is also one of the nation's largest builders of active adult homes. The Company reported a net loss of $286.08 million on $1.13 billion of total revenue for the fiscal year ended Oct. 31, 2011, compared with net income of $2.58 million on $1.37 billion of total revenues during the prior year. * * * As reported by the TCR on Nov. 4, 2011, Fitch Ratings has lowered the Issuer Default Rating (IDR) of Hovnanian Enterprises, Inc., (NYSE: HOV) to Restricted Default (RD) from 'CCC'. The downgrade reflects Fitch's view that the debt exchange of certain of Hovnanian's existing senior unsecured notes for new senior secured notes is a distressed debt exchange under Fitch's 'Distressed Debt Exchange Criteria', published Aug. 12, 2011. Fitch anticipates adjusting the company's IDR to the appropriate level to reflect the new capital structure within the next 14 days. In the Nov. 7, 2011, edition of the TCR, Standard & Poor's Ratings Services raised its corporate credit rating on Hovnanian Enterprises Inc. (Hovnanian) to 'CCC-' from 'SD' (selective default). "We also raised our ratings on the company's 10.625% senior secured notes due 2016 to 'CCC-' from 'CC' and senior unsecured notes to 'CC' from 'D'. The '3' recovery rating on the senior secured notes and the '6' recovery rating on the senior unsecured notes remain unchanged," S&P stated. "These rating actions follow our reassessment of Hovnanian's business and financial risk profile following the completion of the company's debt exchange offer, in which the company exchanged $195 million of its seven series of senior unsecured notes for $141.8 million 5% senior secured notes due 2021 and $53.2 million 2% senior secured notes due 2021," said credit analyst George Skoufis. "Our rating on Hovnanian reflects the company's highly leveraged financial risk profile, a less-than-adequate liquidity position, and very weak credit metrics." As reported by the TCR on Sept. 13, 2011, Moody's Investors Service downgraded the corporate family and probability of default ratings of Hovnanian Enterprises, Inc. to Caa2 from Caa1. The downgrade reflects Hovnanian's continued operating losses, weak gross margins, very high homebuilding debt leverage, and Moody's expectation that the weakness in year-over-year revenues, deliveries, and net new contracts experienced by the company will continue for the next one to two years. In addition, the downgrades acknowledge that Hovnanian's cash balance is weakening and cash flow generation is negative as it pursues new land opportunities, which represented about $300 million of investment over the first nine months of fiscal 2011. HOWARD AVENUE: Case Summary & 10 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Howard Avenue Station, LLC 303 S. Melville Ave. Tampa, FL 33606 Bankruptcy Case No.: 12-08821 Chapter 11 Petition Date: June 6, 2012 Court: United States Bankruptcy Court Middle District of Florida (Tampa) Judge: Catherine Peek McEwen Debtor's Counsel: W. Bart Meacham, Esq. 308 East Plymouth Street Tampa, FL 33603-5957 Tel: (813) 223-6334 Fax: (813) 425-6969 E-mail: wbartmeacham@yahoo.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtor's list of its 10 largest unsecured creditors is available for free at http://bankrupt.com/misc/flmb12-08821.pdf The petition was signed by Thomas Ortiz, managing member. INDIANAPOLIS DOWNS: Proposes Bidding Protocol --------------------------------------------- Indianapolis Downs LLC has filed procedures for an auction of the company as it continues to pursue a possible sale alongside its restructuring plan. The Debtorsm, according to BankruptcyData.com, said they are pursuing this process simultaneously with a confirmation process for the Plan in order to avoid delaying the recapitalization if an acceptable sale transaction cannot be completed. BankruptcyData.com discloses that the Court scheduled a June 21, 2012 hearing on the matter. About Indianapolis Downs Indianapolis Downs LLC operates Indiana Live -- http://www.indianalivecasino.com/-- a combined race track and casino at a state-of-the-art 283 acre Shelbyville, Indiana site. It also operates two satellite wagering facilities in Evansville and Clarksville, Indiana. Total revenue for 2010 was $270 million, representing an 8.7% increase in 2009. The casino captured 53% of the Indianapolis market share. In July 2001, Indianapolis Downs was granted a permit to conduct a horse track operation in Shelvyville, Indiana, and started operating the track in 2002. It was granted permission to operate the casino at the racetrack operation in May 2007. The casino began operations in July 2010. Indianapolis Downs and subsidiary, Indianapolis Downs Capital Corp., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 11-11046) in Wilmington, Delaware, on April 7, 2011. Indianapolis Downs estimated $500 million to $1 billion in assets and up to $500 million in debt as of the Chapter 11 filing. According to a court filing, the Debtor owes $98,125,000 on a first lien debt. It also owes $375 million on secured notes and $72.6 million on subordinated notes. Matthew L. Hinker, Esq., Scott D. Cousins, Esq., and Victoria Watson Counihan, Esq., at Greenberg Traurig, LLP in Wilmington, Delaware, have been tapped as counsel to the Debtors. Christopher A. Ward, Esq., at Polsinelli Shughart PC, in Wilmington, Delaware, is the conflicts counsel. Lazard Freres & Co. LLC is the investment banker. Bose Mckinney & Evans LLP and Bose Public Affairs Group LLC serve as special counsel. Kobi Partners, LLC, is the restructuring services provider. Epiq Bankruptcy Solutions is the claims and notice agent. INDYMAC BANCORP: Ruling Lifts Hopes of Failed Banks' Creditors -------------------------------------------------------------- Patrick Fitzgerald at Dow Jones' Daily Bankruptcy Review reports that a recent federal court decision in favor of the trustee of failed IndyMac Bancorp Inc. in his fight with the Federal Deposit Insurance Corp. over disputed tax refunds could lift the hopes of creditors of other dead banks around the country. Based in Pasadena, California, IndyMac Bancorp Inc. (NYSE:IMB) -- http://www.indymacbank.com/-- is the holding company for IndyMac Bank FSB, a hybrid thrift/mortgage bank that originated mortgages in all 50 states of the United States. Through its hybrid thrift- mortgage bank business model, IndyMac designed, manufactured, and distributing cost-efficient financing for the acquisition, development, and improvement of single-family homes. IndyMac also provided financing secured by single-family homes to facilitate consumers' personal financial goals and strategically invests in single-family mortgage-related assets. On July 11, 2008, the Office of Thrift Supervision closed IndyMac Bank and appointed FDIC as the bank's receiver. Thacher Proffitt & Wood LLP was engaged as counsel to the FDIC. Indymac Bancorp filed for Chapter 7 bankruptcy protection on July 31, 2008 (Bankr. C.D.Calif., Case No. 08-21752). Representing the Debtor are Dean G. Rallis, Jr., Esq., and John C. Weitnauer, Esq. Bloomberg noted that Indymac had about $32.01 billion in assets as of July 11, 2008. In court documents, IndyMac disclosed estimated assets of $50 million to $100 million and estimated debts of $100 million to $500 million. INFINITY FUNDING: Case Summary & 5 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Infinity Funding Corporation 6930 Atlantic Avenue Bell Gardens, CA 90201 Tel: (562) 735-0828 Bankruptcy Case No.: 12-29664 Chapter 11 Petition Date: June 5, 2012 Court: U.S. Bankruptcy Court Central District of California (Los Angeles) Judge: Thomas B. Donovan Debtor's Counsel: Steven Ibarra, Esq. LAW OFFICES OF STEVEN IBARRA 6518 Greenleaf Avenue, Suite 28 Whittier, CA 90601 Tel: (562) 735-0828 Fax: (714) 580-0948 E-mail: sibarra@ibarralaw.com Scheduled Assets: $501,000 Scheduled Liabilities: $1,075,000 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/cacb12-29664.pdf The petition was signed by Vijay B. Patel, president. INFUSYSTEM HOLDINGS: Terminates "Poison Pill" Plan -------------------------------------------------- InfuSystem Holdings, Inc., had formally amended the Company's stockholder rights plan to accelerate the final expiration date of the associated purchase rights issued in the plan. The Company entered into the Rights Agreement with Computershare Shareowner Services LLC, formerly known as Mellon Investor Services, LLC, dated as of Nov. 10, 2010, pursuant to the authority granted to the Board in Section 27 of the Rights Agreement. This amendment effectively terminates the stockholder rights plan, typically referred to as a "poison pill." Under the terms of the amendment, the purchase rights expired at the close of business on June 8, 2012, rather than in November 2020 as in the original rights agreement. "This step further affirms the Board's commitment to transparent communication and strong shareholder governance practices, and was not made in connection with any proposed or expected transaction," stated Ryan Morris, Executive Chairman. About InfuSystem Holdings InfuSystem Holdings, Inc., operates through operating subsidiaries, including InfuSystem, Inc., and First Biomedical, Inc. InfuSystem provides infusion pumps and related services. InfuSystem provides services to hospitals, oncology practices and facilities and other alternate site healthcare providers. Headquartered in Madison Heights, Michigan, InfuSystem delivers local, field-based customer support, and also operates pump service and repair Centers of Excellence in Michigan, Kansas, California, and Ontario, Canada. After auditing the Company's 2011 financial statements, Deloitte & Touche LLP, in Detroit, Michigan, said that the possibility of a change in the majority representation of the Board and consequent event of default under the Credit Facility, which would allow the lenders to cause the debt of $24.0 million to become immediately due and payable, raises substantial doubt about the Company's ability to continue as a going concern. The Company reported a net loss of $45.44 million in 2011, compared with a net loss of $1.85 million in 2010. The Company's balance sheet at March 31, 2012, showed $75.63 million in total assets, $36.09 million in total liabilities and $39.53 million in total stockholders' equity. INSIGHT COMMUNICATIONS: Moody's Withdraws B1 Corp. Family Rating ---------------------------------------------------------------- Moody's Investors Service has withdrawn all ratings of Insight Communications Company, Inc. (Insight) and Insight Midwest Holdings, LLC (Insight Midwest), a wholly-owned subsidiary of Insight, following the redemption of all rated debt. The following ratings and outlook were withdrawn: Insight Communications Company, Inc Corporate Family Rating, previously B1 Probability of Default Rating, previously B1 $495 million Senior Unsecured Notes due 2018, previously B3, LGD5, 89% Insight Midwest Holdings, LLC $250 million Senior Secured Revolver due 2014, previously Ba3, LGD3, 37% $215 million Senior Secured Term Loan A due 2013, previously Ba3, LGD3, 37% $1.2 billion Senior Secured Term Loan B due 2014, previously Ba3, LGD3, 37% Outlook, previously Ratings under Review Ratings Rationale On February 29, 2012, Time Warner Cable Inc. (Baa2, Stable) completed its acquisition of Insight Communications Company, Inc and its subsidiaries and repaid $1.164 billion outstanding debt under Insight Midwest's senior secured credit facility. TWC also redeemed $495 million senior unsecured notes due 2018 under Insight post acquisition. All ratings of Insight and its subsidiary have been withdrawn since the company has no rated debt outstanding. The principal methodology used in rating Insight was the Global Cable Television Industry Methodology published in July 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 New York, NY, Insight offers video, high-speed Internet and voice telephony services to residential and business customers in the United States, with approximately 777,000 customer relationships (including 673,000 residential video subscribers) in the three contiguous states of Kentucky, Indiana and Ohio. Its annual revenue was approximately $1.1 billion. On February 29, 2012, TWC completed its acquisition of Insight, which has become a direct wholly owned subsidiary of TWC. INTELLICELL BIOSCIENCES: Signs Security Agreement with TCA ---------------------------------------------------------- Intellicell Biosciences, Inc., entered into a security agreement with TCA Global Credit Master Fund, LP, a Cayman Islands limited partnership, related to a $500,000 convertible promissory note issued by the Company in favor of TCA. The Security Agreement grants to TCA a continuing, first priority security interest in all of the Company's assets, wheresoever located and whether now existing or hereafter arising or acquired. The maturity date of the Convertible Note is June 7, 2013, and the Convertible Note bears interest at a rate of 12% per annum. The Convertible Note is convertible into shares of the Company's common stock, par value $0.001 per share at a price equal to 95% of the average of the lowest daily volume weighted average price of the Common Stock during the five trading days immediately prior to the date of conversion. The Convertible Note may be prepaid in whole or in part at the Company's option without penalty. A copy of the Convertible Note is available for free at: http://is.gd/m5mXbb 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 March 31, 2012, showed $3.51 million in total assets, $21.97 million in total liabilities, and a $18.46 million total stockholders' deficit. The Company has incurred losses since inception resulting in an accumulated deficit of $43,079,590 and a working capital deficit of $3,811,024 as of March 31, 2012, respectively. However, if the non-cash expense related to the Company's change in fair value of derivative liability and stock based compensation is excluded then the accumulated deficit amounted to $4,121,538. 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. IVOLUTION MEDICAL: Case Summary & 17 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Ivolution Medical Systems California, LLC 12 Oval Drive Islandia, NY 11749 Bankruptcy Case No.: 12-16823 Chapter 11 Petition Date: June 7, 2012 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Linda B. Riegle Debtor's Counsel: Kelly J. Brinkman, Esq. GOOLD PATTERSON ALES & DAY 4496 S. Pecos Road Las Vegas, NV 89121 Tel: (702) 436-2600 Fax: (702) 436-2650 E-mail: kbrinkman@gooldpatterson.com Estimated Assets: $50,001 to $100,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtor's list of its 17 largest unsecured creditors is available for free at http://bankrupt.com/misc/njb12-24675.pdf The petition was signed by Craig Cohen, CEO of iVolution Medical Systems, Inc., sole member. KH FUNDING: Third Amended Plan of Liquidation Declared Effective ---------------------------------------------------------------- KH Funding Company notified the U.S. Bankruptcy Court for the District of Maryland that the Effective Date of the Third Amended Joint Plan of Liquidation occurred on May 1, 2012. On April 17, 2012, the Court entered an order confirming the PLan proposed by the Debtor and the Official Committee of Unsecured Creditors. The Third Amended Plan calls for the liquidation of substantially all of the Debtor's assets including, but not limited to, the collection or sale of loans, negotiation and entry into loan modifications or agreements, sale of real property, and any other action that the Plan Administrator may deem necessary and appropriate to maximize the value of and return on the Debtor's assets. Under the Plan, among other things: -- each holder of an Allowed Class 9 Claim will receive in respect of the claim its Pro Rata distribution of the liquidated assets of the estate after the payment or reserve for Administrative Claims, Priority Tax Claims, Priority Claims, Secured Claims, and Plan Expenses; and -- Class 8 Claims The Series 4 Note Claims, to the extent they are Allowed Claims, will be Allowed General Unsecured Claims and will receive pari passu with Allowed Class 7 Claims and Allowed Class 9 Claims a Pro Rata distribution of the liquidated assets of the estate after the payment or reserve for Administrative Claims, Priority Tax Claims, Priority Claims, Secured Claims, and Plan Expenses; A full-text copy of the Third Amended Plan is available for free at http://bankrupt.com/misc/KHFUNDING_plan_3amended.pdf About KH Funding Company Silver Spring, Maryland-based KH Funding Company is a Maryland corporation whose business activities consisted primarily of originating, acquiring, and servicing mortgage loans. Specifically, KH Funding originated commercial real estate mortgage loans and investment property residential mortgage loans and also purchased residential first and second mortgage loans from other lenders. These lending activities have been concentrated primarily in the greater Washington, D.C. and Baltimore areas. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Md. Case No. 10-37371) on Dec. 3, 2010. Lawrence Coppel, Esq., at Gordon Feinblatt Rothman Hoffberger & Hollander, LLC, in Baltimore, Maryland, serves as the Debtor's bankruptcy counsel. The Debtor estimated its assets and debts at $10 million to $50 million. W. Clarkson McDow, Jr., United States Trustee for Region 4, appointed seven creditors to serve on the Official Committee of Unsecured Creditors. The Committee is represented by Bradford J. Sandler, Esq., at Pachulski Stang Ziehl & Jones LLP, and lawyers at McGuireWoods LLP as co-counsel. The Committee has tapped BDO Consulting, a division of BDO USA, LLP, as its financial advisor. The Troubled Company Reporter on Oct. 3, 2011, outlined the terms of the Joint Liquidation Plan filed by KH Funding and the Committee. The Plan provides that the Debtor's assets will be liquidated in an orderly manner, including sales of real property owned by the Debtor. KHAJA BLESSING: Case Summary & 6 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Khaja Blessing 1001 LLC 3501 Old Winter Garden Road Orlando, FL 32805 Bankruptcy Case No.: 12-07703 Chapter 11 Petition Date: June 5, 2012 Court: U.S. Bankruptcy Court Middle District of Florida (Orlando) Debtor's Counsel: Linda Kay Yerger, Esq. YERGER / TYLER, P.A. 1570 Shadowlawn Drive Naples, FL 34104 Tel: (239) 732-5555 Fax: (239) 262-2590 E-mail: lkyerger@embarqmail.com Scheduled Assets: $953,500 Scheduled Liabilities: $2,344,438 A copy of the Company's list of its six largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/flmb12-07703.pdf The petition was signed by Mohammed S. Islam, president. KMC REAL ESTATE: Non-Material Modification to 2nd Amended Plan -------------------------------------------------------------- KMC Real Estate Investors LLC, filed with the U.S. Bankruptcy Court for the Southern District of Indiana a non-material modification to the Debtor's Second Amended Plan of Reorganization. The modification includes, among other things, the injunctions set forth in the Article X will be automatically terminated without notice, demand or further relief from the Bankruptcy Court in the event that the Debtor or Kentuckian Medical Center, LLC (i) fails to make payment due to the enjoined party under its respective Plan within 30 days of the date that such payment becomes due; (ii) has its bankruptcy case converted to a case under any other chapter of the Bankruptcy Code; (iii) ceases daily business operations for any reason other than emergency, natural disaster or act of God; (iv) the collateral securing the respective secured creditors claim, if any, is not covered by normal and customary insurance for property of the like condition and kind of a period of 14 continuous days or more. A full-text copy of the Plan modification is available for free at http://bankrupt.com/misc/KMCREALESTATE_planmodification.pdf About KMC Real Estate Investors Clarksville, Indiana-based KMC Real Estate Investors LLC owns certain real property located in Clark County, Indiana, commonly known as 4601 Medical Plaza Way, Clarksville, Indiana. The Company filed for Chapter 11 bankruptcy protection (Bankr. S.D. Ind. Case No. 11-90930) on April 1, 2011. Gary Lynn Hostetler, Esq., and Courtney Elaine Chilcote, Esq., at Hostetler & Kowalik, P.C., in Indianapolis, Indiana, serve as the Debtor's bankruptcy counsel. The Debtor disclosed it has undetermined assets and $24.8 million in liabilities as of the Chapter 11 filing. Affiliate Kentuckiana Medical Center, LLC, previously sought Chapter 11 protection (Bankr. S.D. Ind. Case No. 10-93039) on Sept. 9, 2010. The Bankruptcy Court granted RL BB Financial relief from stay on the Debtor's assets. The relief from stay is effective on July 25, 2011, at the close of business. KROLL CONTRACTORS: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Kroll Contractors, Inc 2333 W. University Drive, Suite 101 Tempe, AZ 85821 Bankruptcy Case No.: 12-12679 Chapter 11 Petition Date: June 6, 2012 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: Charles G. Case II Debtor's Counsel: Lawrence D. Hirsch, Esq. DECONCINI MCDONALD YETWIN & LACY, PC 7310 N 16th St #330 Phoenix, AZ 85020 Tel: (602) 282-0472 Fax: (602) 282-0520 E-mail: lhirsch@dmylphx.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 together with the petition is available for free at http://bankrupt.com/misc/azb12-12679.pdf The petition was signed by Bernard Kroll, president. LANDESK GROUP: Moody's Assigns 'B2' CFR; Outlook Stable ------------------------------------------------------- Moody's Investors Service assigned a B2 corporate family rating to first time issuer LANDesk Group, Inc as well as B2 ratings to its proposed senior secured debt facilities. The debt, along with cash on hand is being used to finance the acquisition of Wavelink Corporation and refinance existing debt. Private equity firm, Thoma Bravo and associated funds are the current owners of LANDesk. The ratings outlook is stable. Rating Rationale LANDesk's B2 corporate family rating reflect the company's relatively small size relative to its infrastructure & security software peers, moderate organic growth prospects and minimal operating history as a stand-alone company. Closing leverage is moderate for the B2 rating category at approximately 4.5x debt to EBITDA on a Moody's adjusted basis pro forma for the acquisition. Relative to B2 rated software peers, however, the small scale, short standalone history and private equity ownership result in the rating falling in the B2 category. The ratings also consider the company's strong niche position providing PC and mobile management and end point security software solutions to enterprises and a relatively high proportion of recurring revenues. While LANDesk's primary products face competition from larger companies including Symantec, BMC and Microsoft, the company has continued to grow its main Systems Management product at low single digit rates (slightly below average 7% growth rate experienced by the overall management software tools market). The Wavelink acquisition will allow LANDesk to strengthen its higher growth end point security and mobile device management platform which will contribute approximately 25% to overall revenue of the combined companies. While Moody's expects LANDesk will keep leverage below 5.25x even after considering future acquisitions, significant debt financed acquisitions or equity distributions could result in downward rating pressure. If the company demonstrates a commitment to maintain leverage below 4x, while maintaining its competitive position, the ratings could be upgraded. The following ratings were assigned: Corporate family rating: B2 Probability of default: B3 $15 million senior secured revolver due 2017, B2, LGD3 (34%) $205 million senior secured term loan due 2018, B2, LGD3 (34%) Ratings outlook: stable Ratings on the proposed debt instruments were determined in conjunction with Moody's Loss Given Default Methodology and reflect the instruments' respective position in the capital structure. The principal methodology used in this rating was Moody's Global Software Methodology published in May 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non- Financial Companies in the U.S., Canada and EMEA, published June 2009. LANDesk Software, headquartered in South Jordan, UT, is a provider of IT management tools and end point security solutions. LICHTIN/WADE LLC: Court Determines Global Mediation is Needed ------------------------------------------------------------- The Hon. Randy D. Doub of the Eastern District of North Carolina directed Lichtin/Wade LLC and secured creditor, ERGS II, LLC, undergo a mediated settlement conference, which will be concluded by July 8, 2012. The Court determined that a global mediation is in the best interest of the bankruptcy estate of the Debtor; the secured creditor; the Bankruptcy Administrator; and the unsecured creditors. The Court also ordered that, among other things: -- time for completion of the mediation may be extended at the discretion of the mediator; -- the parties have the right to select their own mediator by agreement; -- if the parties agree upon the selection of a mediator, the Debtor will file with the Court a notice indicating the name, address, and telephone number of the mediator selected, the rate of compensation of the mediator, and including a statement that the mediator and the parties have agreed upon the selection and rate of compensation; -- in the event a mediator is appointed by the Court, the mediator will be compensated at the rate of $200 per hour for time spent in the mediated settlement conference, to be billed in quarter hour segments. An additional flat fee of $125 will be paid to any court appointed mediator to offset administrative costs; -- the mediator will be responsible for reserving a place and making arrangements for the conference and for giving timely notice of the conference to all attorneys, unrepresented parties and other persons and entities required to attend; and -- the mediator will submit a Report of Mediator to the Court which indicates the results of the conference within two weeks of the conclusion of the conference or upon the receipt of a copy of a written settlement agreement, whichever first occurs. About Lichtin/Wade Lichtin/Wade LLC filed for Chapter 11 bankruptcy (Bankr. E.D.N.C. Case No. 12-00845) on Feb. 2, 2012. Lichtin/Wade, based in Wake County, North Carolina, owns and operates an office park known as the Offices at Wade, comprised of two Class A office buildings and vacant land approved for additional office buildings. The buildings are known as Wade I and Wade. Each building is over 90% leased, with only three vacant spaces remaining between the two buildings. Judge Randy D. Doub presides over the case. Trawick H. Stubbs, Jr., Esq., and Laurie B. Biggs, Esq., at Stubbs & Perdue, P.A., serve as the Debtor's counsel. The Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Harold S. Lichtin, president of Lichtin Corporation, the Debtor's manager. LICHTIN/WADE: Court Approves Hughes Pittman as Accountant --------------------------------------------------------- Lichtin/Wade LLC sought and obtained permission from the U.S. Bankruptcy Court to employ A. Kent Pittman, CPA of Hughes, Pittman & Gupton LLP as accountant. HP&G was owed $14,915 for pre-petition services rendered to the Debtor. The firm agreed to waive this pre-petition balance in order to represent the Debtor's estate. HP&G is charging the Debtor a $5,000 flat fee for the preparation for the 2011 federal and NC partnership income tax returns. The firm attests that it is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Lichtin/Wade Lichtin/Wade LLC filed for Chapter 11 bankruptcy (Bankr. E.D.N.C. Case No. 12-00845) on Feb. 2, 2012. Lichtin/Wade, based in Wake County, North Carolina, owns and operates an office park known as the Offices at Wade, comprised of two Class A office buildings and vacant land approved for additional office buildings. The buildings are known as Wade I and Wade. Each building is over 90% leased, with only three vacant spaces remaining between the two buildings. Judge Randy D. Doub presides over the case. Trawick H. Stubbs, Jr., Esq., and Laurie B. Biggs, Esq., at Stubbs & Perdue, P.A., serve as the Debtor's counsel. The Debtor estimated $10 million to $50 million in assets and debts. The petition was signed by Harold S. Lichtin, president of Lichtin Corporation, the Debtor's manager. M3 TECHNOLOGY: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: M3 Technology Incorporated aka M3 Technology, Inc. aka M3 Technology 10375 Richmond Ave. Suite 380 Houston, TX 77042 Bankruptcy Case No.: 12-34444 Chapter 11 Petition Date: June 7, 2012 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: David R. Jones Debtor's Counsel: H Miles Cohn, Esq. SHEINESS, SCOTT, GROSSMAN & COHN, LLP 1001 McKinney, Ste 1400 Houston, TX 77002 Tel: (713) 374-7020 Fax: (713) 374-7049 E-mail: mcohn@hou-law.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 The Debtor did not file a list of its largest unsecured creditors together with its petition. The petition was signed by Lei Wu, vice president. MASTER SILICON: Suspending Filing of Reports with SEC ----------------------------------------------------- Master Silicon Carbide Industries, 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, par value $0.001 per share. Pursuant to Rule 12g-4, the Company is suspending reporting because there are currently less than 500 holders of record of the common shares. There were only 47 holders of the common shares as of June 7, 2012. About Master Silicon Located in Lakeville, Connecticut, Master Silicon Carbide Industries, Inc., through its indirectly wholly-owned operating subsidiary Yili Master Carborundum Production Co., Ltd. ("Yili China"), manufactures and sells in China mostly high quality "green" silicon carbide and some lower-quality "black" silicon carbide, a non-metallic compound that is widely used in industries such as semiconductors, solar energy, ceramics, abrasives and optoelectronics. Child, Van Wagoner & Bradshaw, PLLC, in Salt Lake City, Utah, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2011, citing cash flow constraints, accumulated deficit, and recurring losses from operations, which raised substantial doubt about the Company's ability to continue as a going concern. The Company reported a net loss of $3.14 million of $15.94 million of revenues for 2011, compared with net income of $232,979 on $12.95 million of revenues for 2010. The Company's balance sheet at March 31, 2012, showed US$26.91 million in total assets, US$11.07 million in total liabilities, USUS$10 million in redeemable preferres stock-A, US$10 million in redeemable preferred stock-B, and a US$4.16 million total stockholders' deficit. MBAJ GROUP: Case Summary & 6 Largest Unsecured Creditors -------------------------------------------------------- Debtor: MBAJ Group, LLC 557 Westfield Rd Noblesville, IN 46060 Bankruptcy Case No.: 12-06689 Chapter 11 Petition Date: June 5, 2012 Court: U.S. Bankruptcy Court Southern District of Indiana (Indianapolis) Judge: James K. Coachys Debtor's Counsel: KC Cohen, Esq. KC COHEN, LAWYER, PC 151 N. Delaware Street, Suite 1104 Indianapolis, IN 46204 Tel: (317) 715-1845 Fax: (317) 916-0406 E-mail: kc@esoft-legal.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 six largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/insb12-06689.pdf The petition was signed by Michael L. Jones, president. MIDWEST FAMILY: Moody's Lifts Rating on Class I Bonds to 'Ba1' -------------------------------------------------------------- Moody's Investors Service has upgraded to Baa2 from Baa3 Class I; Ba2 from Ba3 Class II; B2 from B3 Class III; & B2 from B3 Class IV ratings on Midwest Family Housing LLC Military Housing Taxable Revenue Bonds (Navy Midwest Housing Privatization Project) 2006 Series A (collectively the "Bonds") based on the 2011 audited financial information for the project which shows improving financial position for the project. Rating Rationale The upgrade is based on strong 2011 audited financial information for the project which shows an increased asset to debt ratio for all classes of debt as well good occupancy rates for the project. The outlook on the ratings is stable. Strengths: - Strong financial performance, demonstrated by debt service coverage ratios of 3.17x on Class I; 2.03x on Class II; 1.53x on Class III; & 1.15x on Class IV (per the 2011 audited financials) that exceed underwriting standards on all classes, provides sufficient margins of protection against adverse economic conditions. - The overall occupancy rate has remained consistently stable at 93%. - Received BAH increases for the last three years although the FY2012 increase was flat at 0.13%. - Experienced ownership and management team. Challenges: - Construction completion continues to be highly dependent on the sale of several parcels of land. - The debt service reserve fund on the Class I, II and III Bonds is funded by a surety bond from CIFG which is currently unrated. In the event of rental income shortfall and insufficient moneys in operating reserve accounts, bondholders would rely on the credit strength of CIFG for debt service payment. Outlook The outlook is stable given the solid financial performance of the project. What Could Change The Rating Up - Continued improvement of the debt service coverage ratio What Could Change The Rating Down - Significant decline in BAH or occupancy levels that results in a decline in debt service coverage Principal Methodology Used The principal methodology used in this rating was Global Housing Projects published in July 2010. MPG OFFICE: Has Agreement to Temporarily Hold 3800 Chapman Title ---------------------------------------------------------------- MPG Office Trust, Inc., and the special servicer for 3800 Chapman, a property located in Central Orange County, entered into an agreement dated as of June 6, 2012. Pursuant to this agreement, the Company will temporarily remain the title holder of the asset until 3800 Chapman is transferred to another party or there is a completed foreclosure, with a definitive outside date of Dec. 31, 2012, at which time the Company will cease to own the asset. The Company is not obligated to pay any amounts and is not subject to any liability or obligation in connection with its exit from the asset, other than to cooperate in the sale or other disposition. Pursuant to this agreement, the Company is released of nearly all potential claims under the loan documents, except for certain environmental claims and other very limited potential claims that the Company considers immaterial. Also pursuant to this agreement, the Company received a release of all claims under the guaranty of partial payment related to the loan in return for payment by the Company of $2 million. About MPG Office Trust MPG Office Trust, Inc., fka Maguire Properties Inc. -- http://www.mpgoffice.com/-- is the largest owner and operator of Class A office properties in the Los Angeles central business district and is primarily focused on owning and operating high- quality office properties in the Southern California market. MPG Office Trust is a full-service real estate company with substantial in-house expertise and resources in property management, marketing, leasing, acquisitions, development and financing. The Company has been focused on reducing debt, eliminating repayment and debt service guarantees, extending debt maturities and disposing of properties with negative cash flow. The first phase of the Company's restructuring efforts is substantially complete and resulted in the resolution of 18 assets, relieving the Company of approximately $2.0 billion of debt obligations and potential guaranties of approximately $150 million. The Company reported net income of $98.22 million in 2011, compared with a net loss of $197.93 million in 2010. The Company's balance sheet at March 31, 2012, showed $2.19 billion in total assets, $3.11 billion in total liabilities, and a $913.35 million total deficit. NAVISTAR INTERNATIONAL: GAMCO Assets Discloses 4.6% Equity Stake ---------------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, GAMCO Asset Management, Inc., and its affiliates disclosed that, as of June 7, 2012, they beneficially own 3,154,935 shares of common stock of Navistar International Corporation representing 4.60% of the shares outstanding. GAMCO previously reported beneficial ownership of 2,523,677 common shares or a 3.65% equity stake as of Jan. 20, 2012. A copy of the amended filing is available for free at: http://is.gd/bgK5c1 About Navistar International Navistar International Corporation (NYSE: NAV) -- http://www.Navistar.com/-- is a holding company whose subsidiaries and affiliates subsidiaries produce International(R) brand commercial and military trucks, MaxxForce(R) brand diesel engines, IC Bus(TM) brand school and commercial buses, Monaco RV brands of recreational vehicles, and Workhorse(R) brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company also provides truck and diesel engine parts and service. Another affiliate offers financing services. The Company's balance sheet at Jan. 31, 2012, showed $11.50 billion in total assets, $11.69 billion in total liabilities, and a $195 million total stockholders' deficit. * * * Navistar has a 'BB-/Stable/--' corporate credit rating from Standard & Poor's and a 'B1' Corporate Family Rating and Probability of Default Rating from Moody's Investors Service. Moody's said in summary credit opinion at the end of April 2012 that the B1 Corporate Family Rating of Navistar International reflects the company's highly competitive position in the North American medium and heavy duty truck markets, and the continuing recovery in demand. It also reflects the progress Navistar continues to make in implementing a strategy that should reduce its vulnerability to cyclical downturns and strengthen returns. The key elements of this strategy include: expanding its scale and operating efficiencies by offering a full line of medium and heavy-duty trucks equipped with Navistar engines; building its position in international truck and engine markets through alliance and joint ventures; and, strengthening its domestic dealer network. NAVISTAR INTERNATIONAL: Carl Icahn Discloses 11.8% Equity Stake --------------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Carl C. Icahn and his affiliates disclosed that, as of June 7, 2012, they beneficially own 8,134,626 shares of common stock of Navistar International Corporation representing 11.87% of the shares outstanding. Mr. Icahn previously reported beneficial ownership of 7,251,426 common shares or a 9.99% equity stake as of Nov. 2, 2011. A copy of the amended filing is available for free at: http://is.gd/80z5yv About Navistar International Navistar International Corporation (NYSE: NAV) -- http://www.Navistar.com/-- is a holding company whose subsidiaries and affiliates subsidiaries produce International(R) brand commercial and military trucks, MaxxForce(R) brand diesel engines, IC Bus(TM) brand school and commercial buses, Monaco RV brands of recreational vehicles, and Workhorse(R) brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company also provides truck and diesel engine parts and service. Another affiliate offers financing services. The Company's balance sheet at Jan. 31, 2012, showed $11.50 billion in total assets, $11.69 billion in total liabilities, and a $195 million total stockholders' deficit. * * * Navistar has a 'BB-/Stable/--' corporate credit rating from Standard & Poor's and a 'B1' Corporate Family Rating and Probability of Default Rating from Moody's Investors Service. Moody's said in summary credit opinion at the end of April 2012 that the B1 Corporate Family Rating of Navistar International reflects the company's highly competitive position in the North American medium and heavy duty truck markets, and the continuing recovery in demand. It also reflects the progress Navistar continues to make in implementing a strategy that should reduce its vulnerability to cyclical downturns and strengthen returns. The key elements of this strategy include: expanding its scale and operating efficiencies by offering a full line of medium and heavy-duty trucks equipped with Navistar engines; building its position in international truck and engine markets through alliance and joint ventures; and, strengthening its domestic dealer network. NAVISTAR INT'L: Losses Cue Fitch to Give BB Issuer Default Rating ----------------------------------------------------------------- Fitch Ratings has placed the 'BB' IDR for Navistar International Corporation (NAV) and Navistar Financial Corporation (NFC) on Rating Watch Negative. A full rating list is shown below. The Negative Rating Watch reflects: -- Concerns about recent losses; -- NAV's future financial performance; and -- Its competitive position in medium and heavy duty truck markets. Warranty costs associated with new engines were higher than expected during the first half of fiscal 2012. In addition, engine certification by the Environmental Protection Agency (EPA) pertaining to NAV's EGR-only nitrogen oxide emissions continues to be delayed. Connected to these concerns is NAV's market share, which has not returned to higher levels as expected. Debt/EBITDA has increased materially from a level of 2.4x at Oct. 31, 2011 and could remain elevated compared to recent levels. NAV's financial performance typically improves in the second half of its fiscal year. However, Fitch believes NAV will be challenged to achieve profitability for the full year absent a material turnaround in warranty costs and prompt engine certification by the EPA. Margins have also declined due to the recent product mix. This includes a higher proportion of heavy duty trucks and sales to large customers that generate lower margins than other revenue types. Liquidity is adequate, but could become a concern for NAV if: -- Performance doesn't improve; or -- If temporary cash requirements, such as higher working capital requirements for used-truck inventories, do not reverse. Other concerns include: -- Lower military revenue and execution risks related to expansion in overseas markets; -- Discussions with the EPA; and -- The realignment and integration of certain truck and engine operations. NAV has large pension obligations which were underfunded by $1.8 billion (approximately 57% funded) at the end of 2011. NAV expects to contribute $190 million to the plans in 2012. Potential positive developments that could mitigate rating concerns include: -- Indications that quality has improved on recently produced engines; -- Future profitable sales of used trucks which would reduce inventories; and -- EPA engine certification. Due to NFC's close operating relationship and importance to the parent, its ratings are directly linked to those of the ultimate parent. The relationship is governed by the Master Intercompany Agreement. There is a requirement referenced in the NFC credit agreement requiring Navistar, Inc. or NAV to own 100% of NFC's equity at all times. NFC's financial performance is generally in line with Fitch's expectations. Fitch expects to resolve the Negative Rating Watch in the near term following a meeting with management and further review of NAV's performance and plans. Fitch's ratings cover approximately $2 billion of debt at NAV and $2.5 billion of outstanding debt at its Financial Services segment, the majority of which is at NFC, as of April 30, 2012. Fitch has placed the following ratings for NAV and NFC on Rating Watch Negative: Navistar International Corporation -- Long-term IDR 'BB'; -- Senior unsecured notes 'BB'; -- Senior subordinated notes 'B+'. Cook County, Illinois -- Recovery zone revenue facility bonds (Navistar International Corporation Project) series 2010 'BB'; Illinois Finance Authority (IFA) -- Recovery zone revenue facility bonds (Navistar International Corporation Project) series 2010 'BB'; Navistar Financial Corporation -- Long-term IDR 'BB'. -- Senior unsecured bank credit facilities 'BB'. NEWPAGE CORP: Members Ratify New Four-Year Master Contract ---------------------------------------------------------- The United Steelworkers disclosed that its members at NewPage Corp. have ratified a new four-year Master Contract that will bring added protection to 4,500 workers and help the company emerge from Chapter 11 bankruptcy as a stable employer in the coated paper sector of the paper industry. The new master agreement covers employees at NewPage paper facilities in Kentucky, Maine, Maryland, Michigan and Wisconsin. It sets corporate-wide economic terms for wages, pensions, health insurance and sickness and accident benefits, and gives workers additional security in the event any facilities are sold again in the future. NewPage, an Ohio-based maker of coated papers, voluntarily filed for Chapter 11 bankruptcy reorganization Sept. 7, along with certain of its subsidiaries, six years after being bought by Cerberus Capital Management LP. "The resulting deal restructures collective bargaining agreements in a fair manner, and also provides our members with enhanced security for the future, while providing a period of stability to the new company that emerges from bankruptcy to improve, invest and grow the business," said USW District 2 Director Michael Bolton, who chairs the USW NewPage Council of Local Unions. "We could not be more proud of the commitment our local leaders made to the process, their members and the community. The efforts of all of the local unions involved strengthen the long-term future of our mills and all of the stakeholders," said USW International Vice President Jon Geenen, who oversees the union's paper sector. The master agreement will be effective upon court approval and NewPage's emergence from bankruptcy reorganization. In locations where old agreements have expired, the new pact will take effect immediately. The USW represents 850,000 members in the United States, Canada and the Caribbean. It is the largest private sector union in North America, representing workers in a wide range of industries including metals, mining, rubber, paper and forestry, glass, oil refining, plus office, technical and service workers in health care, university and public sector. About NewPage Group 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. NewPage owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia, Canada. NewPage Group, NewPage Holding, NewPage, and certain of their U.S. subsidiaries commenced Chapter 11 voluntary cases (Bankr. D. Del. Case Nos. 11-12804 through 11-12817) on Sept. 7, 2011. Its subsidiary, Consolidated Water Power Company, is not a part of the Chapter 11 proceedings. Separately, on Sept. 6, 2011, its Canadian subsidiary, NewPage Port Hawkesbury Corp., brought a motion before the Supreme Court of Nova Scotia to commence proceedings to seek creditor protection under the Companies' Creditors Arrangement Act of Canada. NPPH is under the jurisdiction of the Canadian court and the court- appointed Monitor, Ernst & Young in the CCAA Proceedings. Initial orders were issued by the Supreme Court of Nova Scotia on Sept. 9, 2011 commencing the CCAA Proceedings and approving a settlement and transition agreement transferring certain current assets to NewPage against a settlement payment of $25 million and in exchange for being relieved of all liability associated with NPPH. On Sept. 16, 2011, production ceased at NPPH. Martin J. Bienenstock, Esq., Judy G.Z. Liu, Esq., and Philip M. Abelson, Esq., Dewey & LeBoeuf LLP, in New York, serve as counsel in the Chapter 11 case. 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. The Official Committee of Unsecured Creditors 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. NORTHCORE TECHNOLOGIES: Announces Launch of Kuklamoo ---------------------------------------------------- Northcore Technologies Inc. announced the launch of the latest member of its group of portfolio companies, Kuklamoo. Kuklamoo is a family information Web destination and national deal site. Its goal is to provide young families with relevant, current, lifestyle information and access to specially curated, high-value deals with savings averaging between 30 and 90 percent. The informational section of the property includes valuable information from a team of well known mom-authors. The articles are thought provoking, contemporary and fully searchable. It is a key objective of the Kuklamoo team to expand upon this component of the Web presence and provide an even broader range of information on a more varied list of topics. The growth opportunity for a family focused daily commerce site is significant, with it currently representing only a small portion of the overall segment sales of over $3 billion dollars annually. The market has taken notice of this potential, with family focussed daily deal site Zulily recently raising $43 million dollars at pricing structure which values the company at over $700 million dollars. "The launch of Kuklamoo is great news for Northcore and our shareholders," said Amit Monga, CEO of Northcore Technologies. "We believe that the family deal segment has been underserved and offers great potential for growth. Stakeholders can expect some exciting developments around our new property in the near term." 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 March 31, 2012, showed C$3.96 million in total assets, C$903,000 in total liabilities and C$3.06 million in total shareholders' equity. PACIFIC ALLIED: Case Summary & 2 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Pacific Allied Development, LLC 9050 Telegraph Road Ste 101 Downey, CA 90240 Bankruptcy Case No.: 12-29995 Chapter 11 Petition Date: June 7, 2012 Court: United States Bankruptcy Court Central District of California (Los Angeles) Judge: Neil W. Bason Debtor's Counsel: Lewis R. Landau, Esq. DYKEMA GOSSETT, LLP 23564 Calabasas Rd., Ste 104 Calabasas, CA 91302 Tel: (888) 822-4340 Fax: (888) 822-4340 E-mail: LLandau@Dykema.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 together with the petition is available for free at http://bankrupt.com/misc/cacb12-29995.pdf The petition was signed by Tony Abboud, president/manager. PENINSULA HOSPITAL: Court OKs LaMonica Herbst as Trustee's Counsel ------------------------------------------------------------------ Lori Lapin Jones, the chapter 11 trustee in the bankruptcy case of Peninsula Hospital Center, sought and obtained approval from the U.S. Bankruptcy Court to employ LaMonica Herbst & Maniscalco LLP as her counsel. The firm's rates are: Professional Rates ------------ ----- Paraprofessional $100-150 Associates $300-400 Partners $400-425 The Chapter 11 Trustee also has tapped Garfunkel Wild, P.C. as her special health care, regulatory, corporate, finance and litigation counsel. Gary F. Herbst, Esq., a partner of LH&M, attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Peninsula Hospital Wayne S. Dodakian, Vinod Sinha, and Shannon Gerardi filed an involuntary Chapter 11 bankruptcy protection against Peninsula Hospital Center -- http://www.peninsulahospital.org/-- (Bankr. E.D.N.Y. Case No. 11-47056) on Aug. 16, 2011. Judge Elizabeth S. Stong presides over the case. Marilyn Cowhey Macron, Esq., at Macron & Cowhey, represents the petitioners. Peninsula Hospital Center and Peninsula General Nursing Home Corp., employed Alvarez & Marsal Healthcare Industry Group, LLC, as financial advisors. The Hospital employed Abrams Fensterman, et al., as their attorneys. Nixon Peabody served as their special counsel; GCG, Inc., serves as claims and noticing agent. Judge Stong appointed Daniel T. McMurray at Focus Management Group as patient care ombudsman. Neubert, Pepe & Monteith P.C. serves as PCO's counsel. Richard J. McCord was appointed by the Court as examiner. His task was to conduct an investigation of the Debtors' relationship and transactions with Revival Home Health Care, Revival Acquisitions Group LLC, Revival Funding Co. LLC, and any affiliates. Certilman Balin, & Hyman, LLP, which counts Mr. McCord as one of the firm's members, served as counsel for the Examiner. CBIZ Accounting, Tax & Advisory of New York, LLC and CBIZ, Inc., serve as financial advisors for the Official Committee of Unsecured Creditors. Robert M. Hirsh, Esq., at Arent Fox LLP, in New York, N.Y., represents the Committee as counsel. PINNACLE AIRLINES: Flight 3407 Plaintiffs Want to Continue Suit --------------------------------------------------------------- The Flight 3407 Plaintiffs, by and through their counsel, Hodgson Russ LLP, ask the U.S. Bankruptcy Court for the Southern District of New York to terminate the automatic stay in the Chapter 11 cases of Pinnacle Airlines Corp., et al., so as to allow the Plaintiffs to continue prosecution of their claims against Pinnacle and Debtor Colgan Inc. in the Western District of New York and New York Supreme Court. The Flight 3407 Plaintiffs further request that the Court require the Debtors to assign any interests in the Insurance Policy resulting from the Colgan Crash to the Flight 3407 pursuant to section 105(a), and that the Debtors cooperate with them in an effort to obtain an appropriate determination that the Flight 3407 claims are fully insured. On Feb. 12, 2009, Continental Airlines Flight 3407, operated by Debtor Colgan crashed into a residential neighborhood near Clarence Center, New York, killing all 49 people on board, well as one person on the ground. Since that date, the estates of the victims have been engaged in litigation with Debtors Colgan and Pinnacle Airlines, Corp. The Debtors' insurer, Global Aerospace, Inc., has defended these cases. Due to the Debtors' bankruptcy filing and the imposition of the automatic stay, however, the remaining Plaintiffs are prevented from continuing their lawsuits against the Debtors, even though their claims are more than likely fully the responsibility of Global. Without relief from the automatic stay, the Plaintiffs face an indefinite delay in litigating their claim. The Plaintiffs set a June 27, 2012, hearing at 9:45 a.m. (prevailing Eastern Time). Objections, if any, are due June 24, at 5 p.m. About Pinnacle Airlines Pinnacle Airlines Corp. (NASDAQ: PNCL) -- http://www.pncl.com/-- a $1 billion airline holding company with 7,800 employees, is the parent company of Pinnacle Airlines, Inc.; Mesaba Aviation, Inc.; and Colgan Air, Inc. Flying as Delta Connection, United Express and US Airways Express, Pinnacle Airlines Corp. operating subsidiaries operate 199 regional jets and 80 turboprops on more than 1,540 daily flights to 188 cities and towns in the United States, Canada, Mexico and Belize. Corporate offices are located in Memphis, Tenn., and hub operations are located at 11 major U.S. airports. Pinnacle Airlines Inc. and its affiliates, including Colgan Air, Mesaba Aviation Inc., Pinnacle Airlines Corp., and Pinnacle East Coast Operations Inc. filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Lead Case No. 12-11343) on April 1, 2012. Judge Robert E. Gerber presides over the case. Lawyers at Davis Polk & Wardwell LLP, and Akin Gump Strauss Hauer & Feld LLP serve as the Debtors' counsel. Barclays Capital and Seabury Group LLC serve as the Debtors' financial advisors. Epiq Systems - Bankruptcy Solutions serves as the claims and noticing agent. The petition was signed by John Spanjers, executive vice president and chief operating officer. Pinnacle Airlines' balance sheet at Sept. 30, 2011, showed $1.53 billion in total assets, $1.42 billion in total liabilities and $112.31 million in total stockholders' equity. Delta Air Lines, Inc., the Debtors' major customer and post- petition lender, is represented by David R. Seligman, Esq., at Kirkland & Ellis LLP. A seven-member official committee of unsecured creditors has been appointed in the case. The Committee selected Goodrich Corporation as its chairperson. The Committee tapped Morrison & Foerster LLP as its counsel. Imperial Capital, LLC, serves as the Committee's financial advisors. PMI GROUP: Court Approves Sale of Impact Funding Certificates ------------------------------------------------------------- BankruptcyData.com reports that the U.S. Bankruptcy Court approved PMI Group's motion to sell Impact Funding LLC Commercial Mortgage Pass Through Certificates Series 2001-A to Cantor Fitzgerald for 100% of the face value of the notes. BankruptcyData.com previously reported that the Debtor's original motion was for approval to sell the certificates to Safeco Insurance Company of America for 82% of its face value, or approximately $1.5 million, subject to higher bids. About The PMI Group Del.-based The PMI Group, Inc., is an insurance holding company whose stock had, until Oct. 21, 2011, been publicly-traded on the New York Stock Exchange. Through its principal regulated subsidiary, PMI Mortgage Insurance Co., and its affiliated companies, the Debtor provides residential mortgage insurance in the United States. The PMI Group filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 11-13730) on Nov. 23, 2011. In its schedules, the Debtor disclosed $167,963,354 in assets and $770,362,195 in liabilities. Stephen Smith signed the petition as chairman, chief executive officer, president and chief operating officer. The Debtor said in the filing that it does not have the financial resources to pay the outstanding principal amount of the 4.50% Convertible Senior Notes, 6.000% Senior Notes and the 6.625% Senior Notes if those amounts were to become due and payable. The Debtor is represented by James L. Patton, Esq., Pauline K. Morgan, Esq., Kara Hammond Coyle, Esq., and Joseph M. Barry, Esq., at Young Conaway Stargatt & Taylor LLP. The Official Committee of Unsecured Creditors appointed in the case retained Morrison & Foerster LLP and Womble Carlyle Sandridge & Rice, LLP, as bankruptcy co-counsel. Peter J. Solomon Company serves as the Committee's financial advisor. PNM INVESTMENTS: Case Summary & 5 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: PNM Investments, Inc. 3452 Worthington Oaks Drive Orange Park, FL 32065 Bankruptcy Case No.: 12-70734 Chapter 11 Petition Date: June 6, 2012 Court: United States Bankruptcy Court Middle District of Georgia (Valdosta) Debtor's Counsel: William Orson Woodall, Esq. WOODALL AND WOODALL P.O. Box 3335 1003 Patterson Street Valdosta, GA 31604 Tel: (229) 247-1211 Fax: (229) 247-1636 E-mail: will@orsonwoodall.com Scheduled Assets: $1,624,923 Scheduled Liabilities: $2,395,760 A copy of the Company's list of its five largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/gamb12-70734.pdf The petition was signed by Paul N. Miranda, president. REDDY ICE: Court Approves DLA Piper as Bankruptcy Counsel --------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas authorized Reddy Ice Holdings, Inc., and Reddy Ice Corporation to employ DLA Piper LLP (US) as bankruptcy counsel, effective as of the Petition Date. As reported in the Troubled Company Reporter on May 2, 2012, DLA Piper is expected to, among other things, prepare and negotiate on the Debtors' behalf plan(s) of reorganization, disclosure statement(s), and all related agreements and documents, and take any necessary action on behalf of the Debtors to obtain confirmation of the plan(s), for these hourly rates: Partners $555 - $1,075 Counsel $285 - $740 Associates $330 - $665 Paraprofessionals $105 - $280 The restructuring attorney leading the DLA Piper engagement in the Chapter 11 cases is Gregg M. Galardi, Esq., whose present hourly rate is $945. Mr. Galardi attests to the Court that DLA Piper is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. 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. A hearing to approve the Disclosure Statement and confirm the Plan has been set for May 18, 2012. Judge Stacey G. Jernigan presides over the case. Reddy Ice's 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. The U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division confirmed the first amended joint plan of reorganization of the Company and its direct subsidiary, Reddy Ice Corporation. As reported in the Troubled Company Reporter on June 5, 2012, Reddy Ice Holdings announced that its Plan is now effective, and the Company has emerged from Chapter 11 protection. The Company is now majority-owned by affiliates of Centerbridge Partners. SAN JOSE REDEVELOPMENT: Moody's Cuts Bond Ratings to 'Ba2' -------------------------------------------------------------- Moody's Investors Service has downgraded the ratings of San Jose Redevelopment Agency Merged Project Area tax allocation bonds. The extent of the downgrades depends on each bond series' specific pledged revenues -- whether housing or non-housing -- and how the debt service reserve requirement is met. The Agency's non-housing tax allocation bonds with cash funded debt service reserves or reserves that are met with sureties from investment grade providers have been downgraded to Ba2 from Baa2. These include: Series 1993, Series 1997, Series 2003, Series 2004, Series 2005A, Series 2006C, Series 2008A, and Series 2008B, which total approximately $1.08 billion in total outstanding debt. The Agency's non-housing tax allocation bonds with debt service reserve requirements met with below investment grade surety policies have been downgraded to Ba3 from Baa3. These include: Series 1999, Series 2002, Series 2005 B, Series 2006 A, Series 2006 B Series 2006 D and Series 2007, which total approximately $670 million in total outstanding debt. Bonds benefitting from the pledge of low-and-moderate income housing tax increment revenues have been downgraded to Baa2 from A3. All ratings remain under review for possible downgrade. Ratings Rationale The downgrade of the non-housing bonds reflects the potential default indicated by the notice filed by the City of San Jose on June 4 2012. According to the notice, the potential default has arisen as a result of the Santa Clara county's notification of its intent to withhold of approximately $20 million in former tax increment revenue on June 1. This could lead to a default as the "Successor Agency" for San Jose's redevelopment agency will have insufficient funds for full debt service payments due on August 1, 2012. The Successor Agency is disputing the actions of the county. A default is not inevitable and several paths remain open for a resolution in time to prevent a debt service shortfall. The city of San Jose, as the Successor Agency, has requested that the State Controller to review Santa Clara County's action. Failing that, the city would likely pursue legal action to resolve the matter. There also remains the possibility of a negotiated resolution between the county and the successor agency, which would address the immediate cash flow needs of the Successor Agency caused by the county's intent to withhold the property tax receipts. And finally, while the city has no obligation to do so, given the relatively modest size of the potential shortfall, the City of San Jose could use its own resources to avoid a default. All of the non-housing senior bonds benefit from a Bond Reserve Requirement which is met by either by a cash funded reserve or a surety. Although each outstanding series benefits only from its own debt service reserve, the aggregate amount of such reserves is approximately $180 million, compared to annual debt service of approximately $133 million. The downgrade of the housing tax allolcation bonds reflects the added uncertainty brought about by the county's decision to withhold property tax increment. While the Successor Agency does not expect a shortfall for the housing TABs, and sufficient fund are available for payment of debt service on August 1, 2012, the successor agency's overall shortfall of funds may adversely impact the cash flow for repayment of the housing TABs. Key Credit Strengths -- Very large project area tax base spanning most of downtown San Jose -- Very large total and incremental Assessed Value (AV) -- Incremental to total AV ratio is very high -- Largest tax payers are well known successful firms -- Signs of improving economy, including lower unemployment and higher sales tax receipts Key Credit Weaknesses -- Santa Clara County Auditor's decision to withhold property tax increment from the Successor Agency may cause a near-term cash shortfall for repayment of non housing bonds. -- For non-housing bonds, very narrow debt service coverage levels due to high leverage and AV declines in 2011 and 2012 -- High tax payer concentration -- Most debt service reserves are non-cash sureties The ratings remain under review for a possible downgrade, along with all other rated tax allocation bonds in the state, reflecting the uncertainties and cash flow risks inherent in implementing the new redevelopment agency dissolution law. The principal methodology used in this rating was Moody's Analytic Approach To Rating California Tax Allocation Bonds published in December 2003. SAVIENT PHARMA: Wants Creditors' Bid to Appoint Receiver Rejected ----------------------------------------------------------------- Lance Duroni at Bankruptcy Law360 reports that Savient Pharmaceuticals Inc. asked a Delaware judge on Friday to reject a bid by creditors to appoint a receiver for the struggling drugmaker, calling it a ploy to force bankruptcy even though Savient is not in default on its debt. On May 1, San Diego-based Tang Capital Partners LP sued the drugmaker?s board in Delaware Chancery Court to get a receiver to liquidate the company's assets, and other creditors soon joined in the complaint. They allege Savient management is burning through cash at an alarming rate, the report adds. About Savient Pharmaceuticals Savient Pharmaceuticals, Inc. is a specialty biopharmaceutical company focused on developing KRYSTEXXA(TM) (pegloticase) for the treatment of chronic gout in adult patients refractory to conventional therapy. Savient also manufactures and supplies Oxandrin(R) (oxandrolone tablets, USP) CIII in the U.S. SDA INC: Meeting to Form Creditors' Panel on June 13 ---------------------------------------------------- Roberta A. DeAngelis, United States Trustee for Region 3, will hold an organizational meeting on June 13, 2012, at 10:00 a.m. in the bankruptcy cases of Route 10 Associates, Inc., SDA, Inc., and Wayne Philadelphia Associates, Inc. The meeting will be held at: United States Trustee's Office One Newark Center 1085 Raymond Blvd. 14th Floor, Room 1401 Newark, NJ 07102 The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' cases. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. 155 Route 10 Associates, Inc., SDA, Inc., and Wayne Philadelphia Associates, Inc., sought Chapter 11 protection (Bankr. D. N.J. Case Nos. 12-24414 to 12-24416) on June 5, 2012, in Newark, New Jersey. SDA INC: Case Summary & 30 Largest Unsecured Creditors ------------------------------------------------------ Debtor: SDA, Inc. dba R&S Strauss Strauss Auto Strauss Discount Auto fdba Autobacs Strauss Inc. 7C Brick Plant Road South River, NJ 08882 Bankruptcy Case No.: 12-24415 Affiliates that simultaneously filed separate Chapter 11 petitions: Entity Case No. ------ -------- 155 Route 10 Associates, Inc. 12-24414 Wayne Philadelphia Associates, Inc. 12-24416 Chapter 11 Petition Date: June 5, 2012 About the Debtors: SDA is a regional retailer of after-market automotive parts and accessories and operator of automotive service centers and owns commercial real estate located in Wayne, New Jersey. Subsidiaries Route 10 Associates and Wayne Philadelphia own commercial real estate located in East Hanover and Wayne, respectively. Court: U.S. Bankruptcy Court District of New Jersey (Newark) Judge: Novalyn L. Winfield Debtors' Counsel: Kenneth Rosen, Esq. LOWENSTEIN SANDLER PC 65 Livingston Avenue Roseland, NJ 07068 Tel: (973) 597-2500 E-mail: krosen@lowenstein.com Debtors' Financial Advisor: PRICEWATERHOUSE COOPERS LLP Lead Debtor's Estimated Assets: $10,000,001 to $50,000,000 Lead Debtor's Estimated Debts: $10,000,001 to $50,000,000 The petitions were signed by Joseph Catalano, president. Previous Chapter 11 filings by related entities: Entity Case No. Petition Date ------ -------- ------------- Autobacs Strauss, Inc. 09-10358 02/04/09 Autobacs U.S.A., Inc. 09-10898 02/04/09 1945 Route 23 Associates, Inc. 06-17474 08/10/06 R&S Parts and Service Inc. 06-17475 08/10/06 June 5 Debtors' Consolidated List of Their 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Cooper Tire & Rubber Company Trade Debt $1,413,502 Credit Department 701 Lima Avenue Findlay, OH 45840 BP Lubricants USA Inc. Trade Debt $517,802 12276 Collections Center Drive Chicago, IL 60693 Local 888-Health Fund Contract $291,771 160 East Union Avenue East Rutherford, NJ 07073 Plyon Manufacturing Corp. Trade Debt $260,561 P.O. Box 2001 Reliable Parkway Chicago, IL 60686 Local 108 Health Fund Contract $164,595 Kumho Tire USA Inc. Trade Debt $129,088 First Insurance Funding Corp. Contract $121,596 Freshpond Road Centre L.P. Lease $113,996 Young Advertising Inc. Trade Debt $109,608 McGuiness Realty Inc. Lease $96,535 Prime Lube Inc. Trade Debt $83,565 Ed DiBenedetto Lease $76,062 Heritage Old Bridge LLC Trade Debt $74,898 Philips Automotive Lighting Trade Debt $70,546 Parts Authority Trade Debt $69,296 Plaza Realty Lease $68,269 Fram Group/Prestone Antifreeze Trade Debt $67,252 Honeywell Inc. Friction-Global Trade Debt $65,868 East Penn Manufacturing Co. Trade Debt $64,265 Hillside Avenue Partners Lease $60,785 J & I Realty Associates, LLC Lease $59,421 Dominick Tozzo Lease $59,300 Kimstrauss 184, Inc. Lease $57,782 Jersey City VF L.L.C. Trade Debt $56,807 Roselle Plaza Management Lease $53,806 North Fork Bank Trust Account $53,442 Servit Quality System Service Contract $53,248 Saini Group, L.L.C. Lease $52,583 AJC Services Co., LLC Lease $50,050 Exide Technologies Reg Trade Debt $49,688 SEALY CORP: FPR Partners Discloses 8.8% Equity Stake ---------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, FPR Partners, LLC, disclosed that, as of May 31, 2012, it beneficially owns 8,855,065 shares of common stock of Sealy Corporation representing 8.8% of the shares outstanding. A copy of the filing is available for free at: http://is.gd/Nq25aZ About Sealy Corp. Trinity, North Carolina-based Sealy Corp. (NYSE: ZZ) -- http://www.sealy.com/-- is the largest bedding manufacturer in the world with sales of $1.5 billion in fiscal 2008. The Company manufactures and markets a broad range of mattresses and foundations under the Sealy(R), Sealy Posturepedic(R), including SpringFree(TM), PurEmbrace(TM) and TrueForm(R); Stearns & Foster(R), and Bassett(R) brands. Sealy operates 25 plants in North America, and has the largest market share and highest consumer awareness of any bedding brand on the continent. In the United States, Sealy sells its products to approximately 3,000 customers with more than 7,000 retail outlets. The Company reported a net loss of $9.88 million for the 12 months ended Nov. 27, 2011, and a net loss of $13.74 million during the prior year. The Company reported a net loss of $15.20 million for the three months ended Nov. 27, 2011. The Company's balance sheet at Feb. 26, 2012, showed $936.26 million in total assets, $999.50 million in total liabilities, and a $63.24 million total stockholders' deficit. * * * Sealy carries 'B' local and issuer credit ratings, with stable outlook, from Standard & Poor's. SEITEL INC: Moody's Withdraws 'B3' Rating on $275MM Term Loan ------------------------------------------------------------- Moody's Investors Service withdrew the B3 rating on Seitel, Inc.'s previously contemplated offering of a $275 million secured term loan facility as Seitel has discontinued marketing the transaction. Seitel's B3 Corporate Family Rating, B3 Probability of Default Rating and the Caa1 rating on its existing $275 million 9.75% senior unsecured notes remained unchanged. The outlook is stable. The principal methodology used in rating Seitel was the Global Oilfield Services 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. Seitel, Inc. is a Houston, Texas based provider of seismic data and related services to the oil and gas industry in North America. SEQUOIA PARTNERS: Gets More Time to File Amended Plan Outline ------------------------------------------------------------- The Hon. Frank R. Alley of the U.S. Bankruptcy Court for the District of Oregon granted Sequoia Partners, LLC and Sequoia Village, LLC a 90-day extension from the April 23, 2012, deadline to file an amended disclosure statement. As reported in the Troubled Company Reporter on May 24, 2012, the Debtors relate that the extension will allow SP to obtain a loan from the proposed purchaser of SP's real property, U.S. Capital Corporation. The parties needed additional time to finalize the terms of a $30,000 loan in order to allow SP to obtain an appraisal of its property in furtherance of an anticipated offer by USCC to purchase SP's real property. The Debtors note that an appraisal is required for the offer from USCC and for valuation of the secured claims in the case. Additionally, under the development alternative set forth in the Plan, SP must obtain a loan of approximately $5 million (the Development Loan). The Debtors may obtain the Development Loan from an entity to be established by Chris Williams through Kennedy Funding Financial, LLC located in New Jersey. The Chapter 11 Plan As reported in the Troubled Company Reporter on Feb. 6, 2012, the Debors filed a joint disclosure statement in support of their reorganization plan dated Jan. 9, 2012. This Plan provides for the Sale of the Property to the Purchaser free and clear of liens and encumbrances for an estimated price of $9.4 million, which will pay all of the Creditors' Allowed Claims. The Sale of the Property must close on the date on or before 180 days after the Effective Date. The Allowed Claims will be paid within 30 days after the close of the Sale. A portion of the Sale Proceeds will go to the Allowed Claims of the Sequoia Village Case Creditors from payments to be made to South Valley Bank to compensate Village for the South Valley Bank Lawsuit claims asserted by Sequoia Partners and Village against South Valley. The portion of the Sequoia Village Property securing the South Valley Village Claim will be reconveyed to South Valley Bank in complete satisfaction of the claim. The balance of the Sequoia Village Property will be reconveyed to Southern Oregon Development in complete satisfaction of its Secured Claim. The personal property securing the Commercial Equipment Claim (Class 18) will be reconveyed to Commercial Equipment in complete satisfaction of its Secured Claim. If the Sale does not close on or before the Sale Deadline, then the Plan provides that the Debtor will obtain a Development Loan of $5 million from Pebble Beach to develop the Golf Course to begin Golf Course operations and create an environment to sell Lots in the Project and to then refinance the Golf Course. The sale proceeds from the First Lots will provide funds to implement the Plan's repayment structure and further develop the Project, including the Villa Lots. The Plan provides for payment in full of Allowed Administrative Expenses within 30 days after the funding of the Development Loan. The Plan provides for payment of Josephine County's Allowed Secured Claim against Sequoia Partners for real property taxes (Class 2) at an estimated amount of $750,000, with a significant payment within 30 days after the funding of the Development Loan, but in any event, no later than five years from the Petition Date. The Development Loan will be secured by a trust deed on the Golf Course Lots, which will require that RRM release the RRM Blanket Trust Deed and the RRM Original Trust Deeds. From the sale of each lot out of the First Quad, which are anticipated to sell for $110,000 to $175,000 each, the proceeds will be distributed in the following order: (a) the Allowed Secured Claim estimated to be $30,000 to Rogue River Mortgage (RRM) if an RRM Lot is sold; the Allowed Secured Claim estimated to be $40,000 to South Valley Bank if an Estate lot is sold; and the Allowed Secured Claim estimated to be $30,000 to Hillebrand PRR if a Hillebrand PRR lot is sold; (b) $50,000 to the Lender; (c) the balance to the Debtor for further development of the Project to generate additional lot sales. A copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/SEQUOIA_PARTNERS_ds.pdf About Sequoia Partners, LLC Grants Pass, Oregon-based Sequoia Partners, LLC, filed for Chapter 11 bankruptcy protection (Bankr. D. Ore. Case No. 10-67547) on Dec. 29, 2010. Tara J. Schleicher, Esq., at Farleigh Wada Witt Attorneys, serves as the Debtor's bankruptcy counsel. Beowulf Consulting, LLC, serves as accountant. CPM Real Estate Services, Inc., serves as loan broker. The Debtor estimated assets at $50 million to $100 million and debts at $10 million to $50 million. Robert D. Miller, Jr., U.S. Trustee for Region 18, appointed five members to the official committee of unsecured creditors. The Committee tapped Douglas R. Schultz and Cassie K. Jones and the law firm of Gleaves Swearingen Potter & Scott LLP as its counsel. SINO-FOREST: 72% of Noteholders Sign Support Agreement ------------------------------------------------------ Sino-Forest Corporation disclosed that holders of approximately 72% of the aggregate principal amount of the Company's outstanding notes have agreed to be parties to the restructuring support agreement entered into by, among others, the Company and an ad hoc committee of its noteholders on March 30, 2012, which provides for the material terms of a transaction which would involve either a sale of the Company to a third party or a restructuring under which the noteholders would acquire substantially all of the assets of the Company, including the shares of all of its direct subsidiaries which own, directly or indirectly, all of the business operations of the Company. On March 30, 2012, the Company announced that it had reached agreement with the Ad Hoc Committee on the material terms of the Transaction. On March 30, 2012, the members of the Ad Hoc Committee, who hold approximately 40% of the aggregate principal amount of the Company's 5% Convertible Senior Notes due 2013, 10.25% Guaranteed Senior Notes due 2014, 4.25% Convertible Senior Notes due 2016 and 6.25% Guaranteed Senior Notes due 2017 executed the Support Agreement in which they agreed to support and vote for the Transaction. As announced on March 30, 2012, the Company continued to solicit additional Noteholder support for the Transaction and all Noteholders who wished to become "Consenting Noteholders" and participate in the Early Consent Consideration (as defined in the Support Agreement) were invited and permitted to do so until the early consent deadline of May 15, 2012. Noteholders holding in aggregate approximately 72% of the principal amount of the Notes, and representing over 66.67% of the principal amount of each of the four series of Notes, have now agreed to be parties to the Support Agreement. About Sino-Forest Corp. Sino-Forest Corporation -- http://www.sinoforest.com/-- is a commercial forest plantation operator in China. Its principal businesses include the ownership and management of tree plantations, the sale of standing timber and wood logs, and the complementary manufacturing of downstream engineered-wood products. Sino-Forest also holds a majority interest in Greenheart Group Limited, a Hong-Kong listed investment holding company with assets in Suriname (South America) and New Zealand and involved in sustainable harvesting, processing and sales of its logs and lumber to China and other markets around the world. Sino-Forest's common shares have been listed on the Toronto Stock Exchange under the symbol TRE since 1995. Sino-Forest Corporation on March 30, 2012, obtained an initial order from the Ontario Superior Court of Justice for creditor protection pursuant to the provisions of the Companies' Creditors Arrangement Act. Under the terms of the Order, FTI Consulting Canada Inc. will serve as the Court-appointed Monitor under the CCAA process and will assist the Company in implementing its restructuring plan. Gowling Lafleur Henderson LLP is acting as legal counsel to the Monitor. During the CCAA process, Sino-Forest expects its normal day-to- day operations to continue without interruption. The Company has not planned any layoffs and all trade payables are expected to remain unaffected by the CCAA proceedings. TALON THERAPEUTICS: Registers Add'l 1.5-Mil. Shares Under Plan -------------------------------------------------------------- Talon Therapeutics, Inc., filed with the U.S. Securities and Exchange Commission a Form S-8 to register 1,500,000 additional shares of common stock for issuance under the Company's 2010 Equity Incentive Plan, as amended, thus increasing the total number of shares registered for issuance under the Plan from 8,500,000 to 10,000,000. A copy of the filing is available for free at http://is.gd/jtqUGj About Talon Therapeutics Formerly known as Hana Biosciences, Inc., Talon Therapeutics Inc. (TLON.OB.) -- http://www.talontx.com/-- is a biopharmaceutical company dedicated to developing and commercializing new, differentiated cancer therapies designed to improve and enable current standards of care. The company's lead product candidate, Marqibo, potentially treats acute lymphoblastic leukemia and lymphomas. The Company has additional pipeline opportunities some of which, like Marqibo, improve delivery and enhance the therapeutic benefits of well characterized, proven chemotherapies and enable high potency dosing without increased toxicity. Effective Dec. 1, 2010, Hana Biosciences Inc. changed its name to Talon Therapeutics Inc. The name change was effected by merging Talon Therapeutics, Inc., a wholly-owned subsidiary of the Company, with and into the Company, with the Company as the surviving corporation in the merger. The Company reported a net loss of $18.82 million for the year ended Dec. 31, 2011, compared with a net loss of $25.98 million during the prior year. The Company's balance sheet at March 31, 2012, showed $7.77 million in total assets, $62.23 million in total liabilities, $34.66 million in redeemable convertible preferred stock, and a $89.13 million total stockholders' deficit. BDO USA, LLP, in San Jose, California, issued a "going concern" qualification on the financial statements for the year ended Dec. 31, 2011, citing recurring losses from operations and net capital deficiency that raise substantial doubt about the Company's ability to continue as a going concern. TANDUS FLOORING: Moody's Upgrades CFR to 'B1'; Outlook Stable ------------------------------------------------------------- Moody's Investors Service upgraded Tandus Flooring, Inc.'s Corporate Family Rating ("CFR") to B1 from B2, affirmed the B2 rating on its senior secured term loan, and revised the rating outlook to stable from positive. The upgrade reflects debt reduction and expectations for continued improvement in operating performance. Upgraded: Issuer: Tandus Flooring, Inc. Corporate Family Rating, to B1 from B2 Probability of Default Rating, to B1 from B2 Affirmed: Senior secured term loan due May 2014 to B2 (LGD4, 61%) from B2 (LGD4, 57%) Outlook, stable (revised from positive) Ratings Rationale "Debt reduction and expectations for continued improvement in operating results have improved Tandus' credit quality," said Moody's Analyst Ben Nelson. The company repaid approximately $30 million of debt during the first quarter, including $20 million of its term loan, resulting in pro forma financial leverage in the mid 3 times Debt/EBITDA range and interest coverage of about 4 times EBIT/Interest. Moody's expects modest near-term improvement in revenue and EBITDA, but substantive incremental improvement in credit metrics would require the company to apply free cash flow to debt reduction. The B1 CFR is principally constrained by small size and event risk associated with private equity ownership. The rating also reflects the highly competitive and cyclical nature of the carpet business, geographic concentration, some exposure to price fluctuations of petroleum-based raw materials, and Moody's view that challenging macroeconomic conditions could limit improvement in overall end market demand. The rating considers favorably the company's end market diversity, operating margin stability relative to rated peers in the manufacturing industry, and good liquidity position. The stable rating outlook assumes the company will continue to generate free cash flow and maintain a good liquidity position. A rating upgrade is unlikely over the intermediate term due to small size and event risk associated with private equity ownership. Conversely, the rating could be pressured if Moody's expected financial leverage in excess of 4.5 times, interest coverage below 3 times, or free cash flow of less than 5% of debt. Deteriorating liquidity, shareholder-friendly activities, or a failure to address upcoming debt maturities in 2014 could also have negative rating implications. The principal methodology used in rating Tandus was the Global Manufacturing Industry Methodology published in December 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Tandus is a leading manufacturer of vinyl-backed floor covering products, including six-foot roll carpet, modular carpet tile and high-style broadloom carpets. The company is a wholly-owned subsidiary of Tandus Group, Inc, whose capital stock is majority owned by funds managed by Oaktree Capital Management, LLC, through the OCM Principal Opportunities Fund II, L.P. and BancAmerica Capital Investors II, L.P. The company's revenues for the last twelve months ending January 28, 2012 were approximately $340 million. THANKS 1B: Case Summary & 14 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Thanks 1B LLC aka Brite Bar aka Velour 297 10th Avenue New York, NY 10001 Bankruptcy Case No.: 12-12460 Chapter 11 Petition Date: June 6, 2012 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Judge: James M. Peck Debtor's Counsel: Bobby H. J. Kim, Esq. 130 Beekman St., #5B New York, NY 10038 Tel: (917) 593-1566 Estimated Assets: $100,001 to $500,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its 14 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/nysb12-12460.pdf The petition was signed by Anthony Piazza, managing member. THEMIS PROPERTIES: Case Summary & 7 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Themis Properties, LLC 2557 Danielle Lane Lexington, KY 40509 Bankruptcy Case No.: 12-51522 Chapter 11 Petition Date: June 7, 2012 Court: United States Bankruptcy Court Eastern District of Kentucky (Lexington) Debtor's Counsel: E David Marshall, Esq. MARSHALL LAW OFFICE 120 North Upper Street Lexington, KY 40507 Tel: (859) 253-0708 E-mail: edavidm@iglou.com Scheduled Assets: $829,700 Scheduled Liabilities: $1,078,104 A copy of the Company's list of its seven largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/kyeb12-51522.pdf The petition was signed by Gary D. Roland, managing member. TRAINOR GLASS: Wins Final Approval to Use Cash, Obtain DIP Loan --------------------------------------------------------------- Trainor Glass Company obtained final approval from the U.S. Bankruptcy Court to use certain cash collateral, incur postpetition debt, and grant adequate protection and provide security and other relief to lender First Midwest Bank. First Midwest is authorized to collect upon, covert to cash and enforce checks, drafts, instruments and other forms of payment coming into its possession or control which constitute Aggregate Collateral or proceeds thereof. The Debtor is authorized to incur up to $300,000 in postpetition loans from First Midwest Bank. The Postpetition Debt will bear interest at a per annum rate of 9%. About Trainor Glass Trainor Glass Company, doing business as Trainor Modular Walls, Trainor Solar, and Trainor Florida, filed for Chapter 11 bankruptcy (Bankr. N.D. Ill. Case No. 12-09458) on March 9, 2012. Trainor was founded in 1953 by Robert J. Trainor Sr. to pursue a residential glass business in Chicago, Illinois. Trainor's business model was focused on quality fabrication, design, engineering, and installation of glass products and framing systems in virtually every architectural application, including (a) new construction, (b) green-building solutions, (c) building rehabilitation, (d) storefronts and entrances, (e) tenant interiors, and (f) custom-specialty work. The Hon. Carol A. Doyle oversees the Chapter 11 case. David A. Golin, Esq., Michael L. Gesas, Esq., and Kevin H. Morse, Esq., at Arnstein & Lehr LLP, serve as the Debtor's counsel. High Ridge Partners, Inc., serves as its financial consultant. The Debtor scheduled $14,276,745 in assets and $64,840,672 in liabilities. A three-member official committee of unsecured creditors has been appointed in the case. The committee retained Sugar Felsenthal Grais & Hammer LLP as counsel. TRIBUNE CO: Creditors Turn Attention to LBO Litigation ------------------------------------------------------ Peg Brickley at Dow Jones' Daily Bankruptcy Review reports that as Tribune Co. closes in on confirmation of its Chapter 11 plan, attention has turned to the litigation over the failed leveraged buyout that drove the media company to bankruptcy more than three years ago. 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) UNIGENE LABORATORIES: In Talks with VPC on Debt Restructuring ------------------------------------------------------------- Unigene Laboratories, Inc., is currently engaged in discussions with Victory Park Capital Advisors, LLC, and certain of its affiliates relating to a potential restructuring of the Company's indebtedness under its existing convertible notes with VPC, which may include the Company's issuance of additional convertible notes or other securities to one or more VPC funds. There are no current agreements or arrangements with respect to any of the foregoing, nor can there be any assurance that any of the foregoing will occur. About Unigene Unigene Laboratories, Inc. OTCBB: UGNE) -- http://www.unigene.com/ -- is a biopharmaceutical company focusing on the oral and nasal delivery of large-market peptide drugs. Unigene reported a net loss of $17.92 million in 2011, a net loss of $27.86 million in 2010, and a net loss of $13.38 million in 2009. The Company's balance sheet at March 31, 2012, showed $14.07 million in total assets, $74.83 million in total liabilities and a $60.75 million total stockholders' deficit. Grant Thornton LLP, in New York, 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 incurred a net loss of $17,900,000 during the year ended Dec. 31, 2011, and, as of that date, has an accumulated deficit of approximately $189,000,000 and the Company's total liabilities exceeded total assets by $55,138,000. UNIGENE LABORATORIES: Richard Levy Discloses 46.2% Equity Stake --------------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Richard Levy and his affliates disclosed that, as of May 29, 2012, they beneficially own 74,057,369 shares of common stock of Unigene Laboratories, Inc., representing 46.2% of the shares outstanding. Mr. Levy previously reported beneficial ownership of 66,182,698 common shares or a 44.2% equity stake as of June 30, 2011. A copy of the amended filing is available for free at: http://is.gd/58kZef About Unigene Unigene Laboratories, Inc. OTCBB: UGNE) -- http://www.unigene.com/ -- is a biopharmaceutical company focusing on the oral and nasal delivery of large-market peptide drugs. Unigene reported a net loss of $17.92 million in 2011, a net loss of $27.86 million in 2010, and a net loss of $13.38 million in 2009. The Company's balance sheet at March 31, 2012, showed $14.07 million in total assets, $74.83 million in total liabilities and a $60.75 million total stockholders' deficit. Grant Thornton LLP, in New York, 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 incurred a net loss of $17,900,000 during the year ended Dec. 31, 2011, and, as of that date, has an accumulated deficit of approximately $189,000,000 and the Company's total liabilities exceeded total assets by $55,138,000. UNI-PIXEL INC: Austin Marxe Ceases to Hold 5% Equity Stake ---------------------------------------------------------- In an amended Schedule 13g filing with the U.S. Securities and Exchange Commission, Austin W. Marxe and David M. Greenhouse disclosed that, as of May 31, 2012, they beneficially own 345,347 shares of common stock of Uni-Pixel, Inc., representing 4.8% of the shares outstanding. Mr. Marxe previously reported beneficial ownership of 495,439 common shares or a 7% equity stake as of Dec. 31, 2011. A copy of the amended filing is available for free at: http://is.gd/2OSq1k About Uni-Pixel Inc. The Woodlands, Tex.-based Uni-Pixel, Inc. (OTC BB: UNXL) -- http://www.unipixel.com/-- is a production stage company delivering its Clearly Superior(TM) Performance Engineered Films to the Lighting & Display, Solar and Flexible Electronics market segments. The Company reported a net loss of $8.57 million in 2011 and a net loss of $3.82 million in 2010. The Company's balance sheet at March 31, 2012, showed $6.97 million in total assets, $101,694 in total liabilities, and $6.87 million in total shareholders' equity. UNITED CONTINENTAL: Pilots Hold Informational Picketing Tomorrow ---------------------------------------------------------------- United and Continental Airlines pilots, represented by the Air Line Pilots Association, Int'l (ALPA) will be conducting informational picketing at the site of the United Continental Holdings annual shareholders meeting on Tuesday, June 12, 2012 to mark the passing of a second year without a new contract and to alert management, shareholders, passengers and the media that it is time to complete the end-game negotiations now underway with the Company. If the Company cannot comply with the agreed-upon June 15 deadline to reach an agreement on a Joint Collective Bargaining Agreement, the pilots of United and Continental call on the National Mediation Board to grant our request for a release from mediation. Who: United Airlines pilots, Continental Airlines pilots, pilots from other ALPA carriers. What: Informational picketing at the site of the annual shareholders meeting, Crowne Plaza Hotel, 1605 Broadway, New York, N.Y. When: Tuesday, June 12, 2012 8 a.m. to conclusion of shareholders meeting 9 a.m. (shareholders meeting start time) 7:45 a.m. to 9 a.m., Capt. Jay Heppner, chairman of the United pilots union chapter of the Air Line Pilots Association, Int'l, and Capt. Jay Pierce, chairman of the Continental pilots union chapter of the Air Line Pilots Association, Int'l, will be available for onsite interviews at the picket line. Other spokespersons will be available for media interviews. Where: Crowne Plaza Hotel 1605 Broadway, New York, N.Y. Why: We are more than two years past the merger announcement between United and Continental Airlines and we still don't have a Joint Collective Bargaining Agreement. United and Continental pilots contract amendable dates are 12/31/2009 and 12/31/2008, respectively. United management often uses the refrain, "Fresh Start," referring to the company's venture through bankruptcy and the consummation of the United/Continental merger. The pilots, whose sacrifices and professionalism made this merger possible, have been waiting for their "fresh start' for nearly a decade. United and Continental pilots continue living and operating under bankruptcy- era and concessionary contracts. Airlines are a service industry and its employees must be recognized if the product is going to be well received. United must respect the leadership role of its pilots and that begins at the bargaining table. The pilots of United and Continental call on United management to honor the June 15 deadline in reaching an agreement on a JCBA. About United Continental United Continental Holdings, Inc. (NYSE: UAL) -- http://www.UnitedContinentalHoldings.com/-- is the holding company for both United Airlines and Continental Airlines. Together with United Express, Continental Express and Continental Connection, the airlines operate a total of 5,800 flights a day to 371 airports throughout the Americas, Europe and Asia from their hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York, San Francisco, Tokyo and Washington, D.C. United Air Lines, UAL Corp. and their affiliates filed for Chapter 11 protection (Bankr. N.D. Ill. Case No. 02-8191) on Dec. 9, 2002. Kirkland & Ellis represented the Debtors in their restructuring efforts. Sonnenschein Nath & Rosenthal LLP, nka SNR Denton, represented the Official Committee of Unsecured Creditors. Judge Eugene R. Wedoff confirmed a reorganization plan for UAL on Jan. 20, 2006. The Company emerged from bankruptcy on Feb. 1, 2006. United Continental carries 'B2' corporate family and probability of default ratings, with stable outlook, from Moody's, 'B' issuer credit ratings, with stable outlook, from Standard & Poor's, and 'B' issuer default rating from Fitch. Fitch upgraded United Continental's IDR from 'B-' to 'B' in September 2011, citing, "The upgrade follows a year of significant debt reduction and strong free cash flow (FCF) generation since the closing of the United-Continental merger on Oct. 1, 2010. In the face of heavy fuel cost pressure during the first half of 2011, UAL has consistently reported industry-leading revenue per available seat mile (RASM) growth while funding heavy debt maturities out of internally generated cash flow. USEC INC: To Issue Additional 10MM Shares Under Savings Program --------------------------------------------------------------- USEC Inc. filed with the U.S. Securities and Exchange Commission a Form S-8 to register an additional 10,000,000 shares of its common stock which may be offered and sold to participants under the USEC Savings Program. The proposed maximum aggregate offering price is $7.1 million. A copy of the filing is available for free at: http://is.gd/60odno 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. USEC INC: Tradewinds Global Ceases to Hold 5% Equity Stake ---------------------------------------------------------- In an amended Schedule 13G filing with the U.S. Securities and Exchange Commission, Tradewinds Global Investors, LLC, disclosed that, as of May 31, 2012, it beneficially owns 4,568,835 shares of common stock of USEC Inc. representing 3.61% of the shares outstanding. Tradewinds previously reported beneficial ownership of 7,439,861 common shares or a 6.1% equity stake as of Dec. 31, 2011. A copy of the amended filing is available for free at: http://is.gd/wVQKST 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. VITRO SAB: Judge Set to Rule on Bankruptcy Plan This Week --------------------------------------------------------- According to American Bankruptcy Institute, Bloomberg News reported that Vitro SAB is set to learn this week whether it can enforce its Mexican bankruptcy plan in the U.S. after the glassmaker clashed with bondholders in court over the plan. About Vitro SAB Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV: VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global glass producer, serving the construction and automotive glass markets and glass containers needs of the food, beverage, wine, liquor, cosmetics and pharmaceutical industries. Vitro is the largest manufacturer of glass containers and flat glass in Mexico, with consolidated net sales in 2009 of MXN23,991 million (US$1.837 billion). Vitro defaulted on its debt in 2009, and sought to restructure around US$1.5 billion in debt, including US$1.2 billion in notes. Vitro launched an offer to buy back or swap US$1.2 billion in debt from bondholders. The tender offer would be consummated with a bankruptcy filing in Mexico and Chapter 15 filing in the United States. Vitro said noteholders would recover as much as 73% by exchanging existing debt for cash, new debt or convertible bonds. Concurso Mercantil & Chapter 15 Proceedings Vitro SAB on Dec. 13, 2010, filed its voluntary petition for a pre-packaged Concurso Plan in the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon, commencing its voluntary concurso mercantil proceedings -- the Mexican equivalent of a prepackaged Chapter 11 reorganization. Vitro SAB also commenced parallel proceedings under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan on Dec. 13, 2010, to seek U.S. recognition and deference to its bankruptcy proceedings in Mexico. Early in January 2011, the Mexican Court dismissed the Concurso Mercantil proceedings. But an appellate court in Mexico reinstated the reorganization in April 2011. Following the reinstatement, Vitro SAB on April 14, 2011, re-filed a petition for recognition of its Mexican reorganization in U.S. Bankruptcy Court in Manhattan (Bankr. S.D.N.Y. Case No. 11- 11754). The Vitro parent received sufficient acceptances of its reorganization by using the US$1.9 billion in debt owing to subsidiaries to vote down opposition by bondholders. The holders of US$1.2 billion in defaulted bonds opposed the Mexican reorganization plan because shareholders could retain ownership while bondholders aren't being paid in full. Vitro announced in March 2012 that it has implemented the reorganization plan approved by a judge in Monterrey, Mexico. In the present Chapter 15 case, the Debtor seeks to block any creditor suits in the U.S. pending the reorganization in Mexico. Chapter 11 Proceedings A group of noteholders opposed the exchange -- namely Knighthead Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc., Davidson Kempner Distressed Opportunities Fund LP, and Brookville Horizons Fund, L.P. Together, they held US$75 million, or approximately 6% of the outstanding bond debt. The Noteholder group commenced involuntary bankruptcy cases under Chapter 11 of the U.S. Bankruptcy Code against Vitro Asset Corp. (Bankr. N.D. Tex. Case No. 10-47470) and 15 other affiliates on Nov. 17, 2010. Vitro engaged Susman Godfrey, L.L.P. as U.S. special litigation counsel to analyze the potential rights that Vitro may exercise in the United States against the ad hoc group of dissident bondholders and its advisors. A larger group of noteholders, known as the Ad Hoc Group of Vitro Noteholders -- comprised of holders, or investment advisors to holders, which represent approximately US$650 million of the Senior Notes due 2012, 2013 and 2017 issued by Vitro -- was not among the Chapter 11 petitioners, although the group has expressed concerns over the exchange offer. The group says the exchange offer exposes Noteholders who consent to potential adverse consequences that have not been disclosed by Vitro. The group is represented by John Cunningham, Esq., and Richard Kebrdle, Esq. at White & Case LLP. A bankruptcy judge in Fort Worth, Texas, denied involuntary Chapter 11 petitions filed against four U.S. subsidiaries. On April 6, 2011, Vitro SAB agreed to put Vitro units -- Vitro America LLC and three other U.S. subsidiaries -- that were subject to the involuntary petitions into voluntary Chapter 11. The Texas Court on April 21 denied involuntary petitions against the eight U.S. subsidiaries that didn't consent to being in Chapter 11. Kurtzman Carson Consultants is the claims and notice agent to Vitro America, et al. Alvarez & Marsal North America LLC, is the Debtors' operations and financial advisor. The official committee of unsecured creditors appointed in the Chapter 11 cases of Vitro America, et al., has selected Sarah Link Schultz, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Dallas, Texas, and Michael S. Stamer, Esq., Abid Qureshi, Esq., and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York, as counsel. Blackstone Advisory Partners L.P. serves as financial advisor to the Committee. The U.S. Vitro companies sold their assets to American Glass Enterprises LLC, an affiliate of Sun Capital Partners Inc., for US$55 million. U.S. subsidiaries of Vitro SAB are having their cases converted to liquidations in Chapter 7, court records in January 2012 show. In December, the U.S. Trustee in Dallas filed a motion to convert the subsidiaries' cases to liquidations in Chapter 7. The Justice Department's bankruptcy watchdog said US$5.1 million in bills were run up in bankruptcy and hadn't been paid. WASHINGTON LOOP: Chapter 11 Liquidating Plan Wins Court Approval ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida confirmed the Liquidating Plan proposed by the Chapter 11 trustee for Washington Loop, LLC, Westpoints Investment Partners VIII, LLC, dated as of Feb. 23, 2012, as amended. According to the Amended Disclosure Statement, the Liquidated Debtors will fund all distributions required under the Plan from the proceeds from the sale of the Property pursuant to the Plan, including the carve-out to be paid by the purchaser. Under the Plan: Class 1A and 1B -- Priority Claims: The Allowed Priority Claims will be paid, consistent with the Allowed Amount of the claim, on the Effective Date or as soon as practicable thereafter from the Proceeds resulting from the sale of the Property or by the buyer of the Property. Class 2A and 2B -- Secured Claim of Charlotte County Tax Collector and Tax Lien Certificate Holders (if any): The Allowed Secured Claim of the Charlotte County Tax Collector or of any Tax Lien Certificate Holders will be paid by the purchaser of the Property, consistent with the Allowed Amount of such claim, or the amount as may be reflected on the face of the tax lien certificate, which will constitute its Allowed Claim amount, over five years. Class 3A, 3B and 3C -- Secured claim of Mortgage Holders: Creditors will each be paid to the extent of their credit bid on the Effective Date or as soon as practicable thereafter by and through the purchase of the Property, which will serve as a payment of the indubitable equivalent the bid amount of such Allowed Secured Claims. Class 4A and 4B -- Secured Claims of Personal Property Lien Holders: The purchaser of the Property will continue to make contract payments to Credential Leasing Corporation for the duration of the agreement between the Debtors and Credential Leasing Corporation. -- Wells Fargo will be entitled to recover its collateral pursuant to an agreed Order granting relief from the automatic stay, effective immediately upon entry or as directed by the Court. Class 5 -- Non-Insider Unsecured Creditors of Washington Loop, LLC, and Westpoints Investment Partners VIII, LLC: Non-Insider Unsecured Creditors holding Non-Insider Allowed Claims will receive a pro rata distribution from the $50,000 fund to be paid by the purchaser of the Property. Class 6 -- Unsecured Claims of Insiders and Affiliates of the Debtors of Washington Loop and Westpoints: Unsecured Creditors who are Insiders or Affiliates of the Debtors will receive no distribution on account of their Unsecured Claims. Class 7 -- Equity Security Holders: Lehr, M. Beaudoin and D. Beaudoin will transfer their Equity Security Interests in Washington Loop to the Robinson Group in exchange for: i) payment by the Robinson Group of $30,000 to Lovina Lehr and $100,000 to DMF Bait Company, and ii) the Robinson Group's covenant not to sue either Lovina Lehr, Daniel Beaudoin or Michael Beaudoin. A full-text copy of the Amended Disclosure Statement is available for free at: http://bankrupt.com/misc/WASHINGTON_LOOP_ds_amended.pdf About Washington Loop Punta Gorda, Florida-based Washington Loop, LLC, operates an aggregate mine in Charlotte County, Florida. The Company owns two parcels of real property and improvements -- the Loop Property and the Mirror Lakes Property -- which, together, comprise roughly 474 adjoining acres in Punta Gorda, Charlotte County. The Company filed for Chapter 11 bankruptcy protection on March 31, 2011 (Bankr. M.D. Fla. Case No. 11-06053). Judge Jeffery P. Hopkins presides over the case. Steven M. Berman, Esq., and Hugo S. deBeaubien, Esq., at Shumaker, Loop & Kendrick, LLP, in Tampa, Fla., represent the Debtor as counsel. The Debtor disclosed $45,098,259 in assets and $19,703,694 in liabilities as of the Chapter 11 filing. The Debtor was dismissed from a prior Chapter 11 case (Case No. 10-27981) by order of the Court entered on March 17, 2011. In the prior Chapter 11 case, the Debtor's Schedule F, as filed under penalty of perjury, listed some 34 general unsecured creditors totaling claims of $1,953,354. All Schedule F debts were listed as non-contingent, liquidated, and undisputed. The Debtor now declares that all Schedule F debts are unliquidated. These schedules were filed no less than two weeks after the dismissal of the prior Chapter 11 case, and only six weeks after the Debtor filed its Schedule F in that case. Don Walton, the United States Trustee for Region 21, and Charles A. Robinson Living Trust, creditor and interest holder against Washington Loop, filed separate requests to convert the Debtor's 2011 Chapter 11 reorganization case to Chapter 7 liquidation. On Sept. 19, 2011, the Court appointed of Louis X. Amato as Chapter 11 trustee, which is represented by Shumaker, Loop & Kendrick, LLP. The trustee tapped Rock Enterprises, Inc., as engineering consultant, Joseph R. Schortz, C.P.A, PLLC, as accountants, Douglas Wilson Companies as broker, and Lovina Lehr as consultant. No committee has been appointed in either of the Debtors' cases. WASHINGTON LOOP: Court Says $23,804 is South Loop Collateral Value ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Middle District of Florida determined that the value of the collateral of South Loop, LLC in Washington Loop, LLC, and Westpoints Investment Partners VIII, LLC's property is $23,804 as of April 12, 2012. Washington Loop owns approximately 282 adjoining acres of real property and improvements thereon in Punta Gorda, Charlotte County, Florida. Westpoints is a Florida limited liability company which owns approximately 219 acres of real property immediately adjacent to the Loop Property. Westpoints was purchased outright by Washington Loop in May 2008. South Loop asserts an interest on the sub-parcels of the Debtors' property having Charlotte County, Florida Parcel. Pursuant to its Proofs of Claim, South Loop asserts a balance due to it from the Debtors in the amount of $439,920, of which $35,532 is purportedly secured by the South Loop Parcels. The Court also ordered that notwithstanding the valuation pursuant to the Order, South Loop will be entitled to net proceeds in the amount of $100,000 from the sale of the collateral which took place on April 13, 2012. About Washington Loop Punta Gorda, Florida-based Washington Loop, LLC, operates an aggregate mine in Charlotte County, Florida. The Company owns two parcels of real property and improvements -- the Loop Property and the Mirror Lakes Property -- which, together, comprise roughly 474 adjoining acres in Punta Gorda, Charlotte County. The Company filed for Chapter 11 bankruptcy protection on March 31, 2011 (Bankr. M.D. Fla. Case No. 11-06053). Judge Jeffery P. Hopkins presides over the case. Steven M. Berman, Esq., and Hugo S. deBeaubien, Esq., at Shumaker, Loop & Kendrick, LLP, in Tampa, Fla., represent the Debtor as counsel. The Debtor disclosed $45,098,259 in assets and $19,703,694 in liabilities as of the Chapter 11 filing. The Debtor was dismissed from a prior Chapter 11 case (Case No. 10-27981) by order of the Court entered on March 17, 2011. In the prior Chapter 11 case, the Debtor's Schedule F, as filed under penalty of perjury, listed some 34 general unsecured creditors totaling claims of $1,953,354. All Schedule F debts were listed as non-contingent, liquidated, and undisputed. The Debtor now declares that all Schedule F debts are unliquidated. These schedules were filed no less than two weeks after the dismissal of the prior Chapter 11 case, and only six weeks after the Debtor filed its Schedule F in that case. Don Walton, the United States Trustee for Region 21, and Charles A. Robinson Living Trust, creditor and interest holder against Washington Loop, filed separate requests to convert the Debtor's 2011 Chapter 11 reorganization case to Chapter 7 liquidation. On Sept. 19, 2011, the Court appointed of Louis X. Amato as Chapter 11 trustee, which is represented by Shumaker, Loop & Kendrick, LLP. The trustee tapped Rock Enterprises, Inc., as engineering consultant, Joseph R. Schortz, C.P.A, PLLC, as accountants, Douglas Wilson Companies as broker, and Lovina Lehr as consultant. No committee has been appointed in either of the Debtors' cases. WESCHE JEWELERS: Case Summary & 15 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Wesche Jewelers of Brevard, LLC dba Wesche Jewelers 8145 N Wickham Road Viera, FL 32940 Bankruptcy Case No.: 12-07757 Chapter 11 Petition Date: June 6, 2012 Court: United States Bankruptcy Court Middle District of Florida (Orlando) Debtor's Counsel: R Scott Shuker, Esq. LATHAM SHUKER EDEN & BEAUDINE LLP P.O. Box 3353 Orlando, FL 32802 Tel: (407) 481-5800 Fax: (407) 481-5801 E-mail: bankruptcynotice@lseblaw.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 15 largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/flmb12-07757.pdf The petition was signed by Holly Wesche, member/manager. Affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- San Maro Center, LLC 12-7346 05/30/12 WINDSOR PAVILIONS-DES: Case Summary & 5 Largest Unsec Creditors --------------------------------------------------------------- Debtor: Windsor Pavilions-Des, LLC 2701 East Camelback Rd Suite #175 Phoenix, AZ 85016 Bankruptcy Case No.: 12-12716 Chapter 11 Petition Date: June 7, 2012 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: Sarah Sharer Curley Debtor's Counsel: Edwin B. Stanley, Esq. SIMBRO & STANLEY, PLC 8767 East Via De Commercio #103 Scottsdale, AZ 85258-3374 Tel: (480) 607-0780 Fax: (480) 907-2950 E-mail: bstanley@simbroandstanley.com Scheduled Assets: $4,000,897 Scheduled Liabilities: $2,741,050 A copy of the Company's list of its five largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb12-12716.pdf The petition was signed by Douglas J. Edgelow, manager. WYNN RESORTS: Fitch Affirms 'BB' LT IDR Rating; Outlook Stable -------------------------------------------------------------- Fitch Ratings assigns a 'BBB-' to the Wynn Resorts (Macau), S.A. proposed $1.5 billion senior secured credit facility. Fitch also affirms the following ratings IDRs for the entities listed below: Wynn Resorts (Macau), S.A. (Wynn Macau), -- Long-term IDR at 'BB'; -- Outstanding credit facility at 'BBB-'. Wynn Las Vegas LLC (Wynn Las Vegas), and -- Long-term IDR at 'BB'; -- Credit facility at 'BB+'; -- First mortgage notes at 'BB+'. Wynn Resorts, Ltd (Wynn Resorts; collectively Wynn). -- Long-term IDR at 'BB'. The Rating Outlook is Stable. The Macau facility will consist of a $1 billion revolver maturing 2018 and a $500 million term loan also maturing in 2018 ($250 million will be due in 2017). There will also be a $1 billion accordion option. Proceeds will be used to partially fund Wynn's Cotai project, which is budgeted at $3.5 billion - $4.0 billion, and to refinance $440 million outstanding (as of March 31, 2012) on the Wynn Macau's existing credit facility. The ratings take into account the increase in the cost estimate for the Cotai project, which could open by early 2016. The company's previous preliminary guidance for the project cost was up to $3 billion. Wynn Macau is currently generating annual discretionary free cash flow (FCF) of roughly $1 billion. Fitch calculates Wynn Macau has excess cash (net of cage/operational cash) of more than $400 million. As a result, Wynn Macau maintains significant financial flexibility and has the ability to largely fund the project with internally generated funds. However, that is not Fitch's expectation. Macau Credit Facility Rating The 'BBB-' rating assigned to the proposed Macau credit facility incorporates Fitch's view that the secured facility is well overcollateralized. This is supported by modest leverage expectations through the development, limitations on secured debt issuance, an attractive supply/demand outlook over the next few years, and high barriers to entry in the market. The proposed facility covenants will largely limit total potential secured debt to the credit facility capacity of $2.5 billion, including the $1 billion accordion option. The 'BBB-' rating currently incorporates Wynn Macau's sufficient financial flexibility to fund the project. There is also tolerance within the rating for the accordion to be funded. Additional potential secured debt meaningfully beyond $2.5 billion could pressure the rating. The Macau credit facility's two-notch rating differential relative to the 'BB' IDR reflects Fitch's soft cap for Macau based issuers and the rating cap of 'BBB-' for secured debt instruments of issuers with IDRs in the 'BB' category (see the criteria reports referenced below). Prospective lenders should note Clause 12 of the Cotai land concession contract (filed on May 12, 2012 as an 8-K). The clause stipulates that the mortgage on leasing rights of the Cotai land could only be granted to institutions with head offices or branches in Macau. The land concession contract for the Peninsula parcel does not have this requirement. IDR and Linkage Considerations The 'BB' IDR continues to incorporate Wynn's high quality assets and solid market position in attractive markets; historically prudent balance sheet management; solid consolidated financial profile, and rating linkage between the stronger Macau subsidiary and the weaker Las Vegas subsidiary. As of March 31, 2012, Fitch calculates gross leverage (total debt/EBITDA) of 4.2x on a consolidated basis and adjusted for the Macau minority interest. Fitch views this as a solid figure for the 'BB' IDR given the company's business risks. Fitch's current base case reflects consolidated gross leverage peaking in the mid- 5x range through the Cotai development. The rating linkage is supported by Wynn's ability and demonstrated willingness to upstream funds from Wynn Macau to the parent as well as Wynn Las Vegas' strategic importance to Wynn Macau and the parent. In 2009-2010 Wynn Resorts contributed $463 million to Wynn Las Vegas. Wynn Resorts collects royalty fees from Wynn Macau, which were $156 million in the LTM period ending March 31, 2012 relative to about $20 million of cash based corporate expenses and roughly $40 million of anticipated interest due annually on the $1.9 billion promissory note related to the Okada share redemption. The new Macau credit facility will permit Wynn Macau to pay dividends as long as the subsidiary is compliant with the net leverage maintenance covenant. This starts at 3.75x, steps-up to 5.00x by 2016 and then starts to step-down in 2017 following the Cotai project opening. Fitch projects ample cushion relative to covenant levels through the Cotai development. Under a stress scenario in which conditions deteriorate such that intercompany support becomes questionable, Fitch may view the ratings on a standalone basis. Such stress would likely be commensurate with the IDR migrating towards the 'B' category. During the Cotai development cycle, intercompany support has the potential to become more strained. However, Fitch's base case incorporates the Las Vegas entity to be solidly free cash flow positive over the next several years and there are no maturities at the Las Vegas subsidiary until 2017. Macau Outlook Fitch is revising its 2012 base case forecast for Macau revenue growth to 15% from the 20% indicated in Fitch's 2012 Gaming Outlook (published in December 2011). The 15% growth rate incorporates Fitch's more cautious view with respect to the slowdown in China and a slower than expected gaming revenue growth in May of 7.3%. In March, Fitch's sovereign team revised its 2012 GDP forecast for China to 8.0% from 8.2%. YTD gaming revenue growth of 21.4% through May remains slightly above Fitch's initial forecast. The May slowdown was in part due to a tough comp to May 2011 due to the Golden Week in May 2011 having seven days versus three days in 2012 and a very strong opening of Galaxy Macau in May 2011. Table hold also had an impact. The slowdown was more skewed towards the VIP business, which is believed to be more susceptible to general macro trends in China. However, the VIP slowdown is not being attributed by the Macau gaming operators to credit or liquidity tightening in China. Fitch expects revenue growth at Wynn Macau to trend below Fitch's 15% growth estimate for the market with some cannibalization expected from the opening of Cotai Central, which partially opened in April with 393 table games (including 156 VIP tables) and 1,860 rooms. Another 200 tables are expected to come online by September 2012. In Fitch's base case, Wynn Macau's 2012 property level EBITDA is roughly $1.26 billion. Net of management fees and corporate expenses, EBITDA is closer to $1.07 billion. Maintenance capital expenditures are estimated at roughly $65 million. Interest expense could be in the $50 million-$100 million range largely depending on how Wynn funds its Cotai project. This should leave roughly $900 million - $1 billion in FCF to be split between funding the Cotai project and paying dividends. Longer-term, Fitch believes gaming authorities in the Chinese- administered territory will remain focused on careful management of supply, as the cap on table games through 2013 limits additional capacity beyond Las Vegas Sands Corp.'s Cotai Central. The government has targeted a table growth rate after the cap of 3% annually. The authorities' commitment to manage market growth primarily through supply regulation, as opposed to travel restrictions, is a positive for incumbent gaming operators' profitability, free cash flow generation potential, and credit quality. Although gaming revenue growth in Macau continues to decelerate from extraordinary levels, new supply additions will be constrained until 2015-2016. Wynn's Cotai property could be the first opening in this next round of market supply growth, but the timing of other potential projects is uncertain at this time. Las Vegas Outlook Fitch remains positive on the Las Vegas Strip recovery. In its December outlook report, Fitch forecasted mid-single digit gaming revenue growth for 2012 (up 5.2% YTD through March) and 2% visitation growth (up 3.6% YTD). Increased convention mix and minimal new room supply should bode well for RevPAR growth. The citywide ADR is up 3.6% YTD while occupancy is up 50 basis points to 82.8%. Wynn Las Vegas'debt/EBITDA gross leverage is at 8.15x taking into account $3.1 billion of debt as of March 31, 2012 and an LTM EBITDA of $380 million (after corporate expense). Pro forma interest expense is approximately $218 million and assuming $60 million for maintenance capex, pro forma FCF is around $100 million. Fitch calculates actual LTM FCF through March 31, 2012 was $157 million. Wynn Las Vegas' liquidity is solid with approximately $705 million of cash (net of $35 million cage cash estimated by Fitch) and $84 million available on the revolver. There are no maturities until 2017 ($500 million of 7.875% first-mortgage notes). The $100 million undrawn revolver matures in 2015. The Las Vegas first mortgage notes are notched up by one from the IDR. Fitch limits the notching to +1 due to the high leverage at the subsidiary in excess of 8x, with all of the debt secured. The notes' security is also conditional and could be removed by the issuer if there is no other secured debt at the Las Vegas subsidiary. Following the first mortgage note issuance in March, the only other secured debt in the capital structure is an undrawn $100 million revolver. Balance Sheet Management and Cash Balances Management has a demonstrated history of conservative balance sheet management. Since its initial IPO in 2002, Wynn completed five secondary equity issuances from 2004-2009 in the U.S., raising nearly $1.9 billion, while also raising an additional $1.9 billion in its 2009 Hong Kong IPO of its Macau subsidiary. During the 2008-2009 U.S. recession, Wynn aggressively improved its balance sheet by extending maturities when possible. Wynn maintained solid capital market access, and issued equity without near-term needs. Unlike some other U.S. operators, Wynn maintained a robust liquidity profile and funded projects early in the development cycle (Encore at Wynn Las Vegas opened in Dec. 2008, while Encore at Wynn Macau opened in Apr. 2010). Fitch believes that in an economic downturn scenario, Wynn Resorts would pull back on the amount of cash it pulls from Wynn Macau through special dividends and management/royalty fees, if needed. As of March 31, 2012, Fitch calculates that Wynn maintained sizable cash balances of roughly $1.5 billion in excess cash (excluding estimated cage/operation cash), consisting of $386 million at Wynn Resorts, around $700 million at Wynn Las Vegas and roughly $430 million at Wynn Macau. Drivers of Future Rating Actions An upgrade of the 'BB' linked IDR is unlikely over the near-term, due to the following primary factors: -- Increased budget of the Cotai project; -- Okada dispute overhang; -- Development risk of the Cotai project (GMP contract is not yet completed) -- Uncertain timing of competitive supply growth in Macau; -- Uncertain impact of developing gaming markets including Vietnam and the Philippines; -- Potential for increased regional market competition over the medium-term, including Japan, South Korea, and Taiwan, and/or -- Still-fragile state of the U.S. economic recovery. The following rating drivers can potentially place negative pressure on the ratings and/or Outlook: -- A significant economic dislocation in China caused by a real estate correction and/or credit market disruptions; -- Wynn developing another project in conjunction with Cotai. Fitch believes that Wynn would be interested to develop in Florida, Japan or Taiwan if any of these jurisdictions approve large scale casino resorts; -- Chinese government enforces stricter restrictions on visitation to Macau by the Chinese nationals, or takes other measures to slow growth; -- U.S. economic recovery stalls or begins to point to a double- dip recession, although that scenario is not currently in Fitch's base case, and/or -- Greater than expected shareholder friendly actions. If one or more of these drivers were to materialize, Fitch believes that Wynn's IDR and credit profile has the ability to remain firmly in the 'BB' category. Current consolidated gross leverage (4.2x based on LTM EBITDA net of minority interest expense) and coverage levels (in the 4.0x-5.0x range on pro forma basis) are solid for the 'BB' IDR relative to Wynn's business risks. Fitch forecasts that the company can maintain solid credit protection measures and ample liquidity through the Cotai development. With respect to the Macau credit facility rating, the following factors could pressure the ratings: -- A significant increase in the projected potential secured debt levels, -- If any of the Asia-specific rating factors noted above result in a greater-than-expected adverse impact to the value of Wynn Macau's assets, -- If the 'BB' IDR was downgraded, Fitch would likely downgrade the Macau credit facility rating accordingly. ZAC THE CAT: Case Summary & 6 Largest Unsecured Creditors --------------------------------------------------------- Debtor: ZAC The Cat, LLC 2921 E Ft Lowell Rd #205 Tucson, AZ 85716 Bankruptcy Case No.: 12-12572 Chapter 11 Petition Date: June 6, 2012 Court: United States Bankruptcy Court District of Arizona (Tucson) Judge: Eileen W. Hollowell Debtor's Counsel: Eric Slocum Sparks, Esq. ERIC SLOCUM SPARKS PC 110 S Church Ave #2270 Tucson, AZ 85701 Tel: (520) 623-8330 Fax: (520) 623-9157 E-mail: law@ericslocumsparkspc.com Scheduled Assets: $788,500 Scheduled Liabilities: $1,748,400 A copy of the Company's list of its six largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/azb12-12572.pdf The petition was signed by Carl Weinstein, trustee. * Paul Hastings' M. McKinnon Moves to Greenberg Traurig ------------------------------------------------------- Michael McKinnon has joined the Orange County office of international law firm Greenberg Traurig, LLP as a shareholder in the Corporate and Securities practice. He has more than 15 years of experience assisting clients with mergers and acquisitions, joint ventures, equity and debt financings and corporate and securities laws. McKinnon joins from the Orange County office of Paul Hastings where he was a partner. McKinnon has handled large transactions in the healthcare industry and represented numerous life sciences companies and private equity sponsors in their acquisitions and sales of various health care providers, including diagnostic imaging providers, PPO networks, diabetic supply businesses, clinical trial companies, home health companies and urgent care centers. He has handled acquisitions for one of the largest Clinical Research Organizations (CRO) in the U.S. and led the joint venture efforts for a large $4 billion multi-facility integrated healthcare delivery system in the Western U.S. "In an industry as rapidly changing and dynamic as healthcare, it's important for us to continue to grow this practice area with key strategic additions of the highest caliber," said Matt Gorson, President of Greenberg Traurig. "Michael is one such addition. His deep experience in the financing and transactional side of the healthcare business will complement our existing platform and also help to further expand our services to a wide variety of healthcare clients." "We are delighted to welcome Michael to the firm," said Raymond Lee, managing shareholder of the Orange County office. "He is a top-tier corporate lawyer with unparalleled experience and market knowledge of both the healthcare and private equity sectors, which will further strengthen our well established corporate practice in California and nationally." McKinnon serves as outside general counsel for several life sciences companies, including medical device firms and large health systems. McKinnon will be collaborating with the firm's Corporate and Securities and Pharmaceutical, Medical Devices & Health Care Litigation attorneys in the firm's California offices, as well as attorneys throughout the firm. McKinnon previously served as in-house counsel for Apria Healthcare and InSight Health Services Corp., both in Irvine, Calif., with primary responsibility for the companies' acquisitions, joint ventures and securities matters. A frequent author on healthcare and corporate issues, McKinnon is also a member of the American Health Lawyers Association. He received his J.D., cum laude, from Pepperdine University and his B.S. from Cornell University. McKinnon's announcement comes on the heels of several key additions in recent months in Greenberg Traurig's California offices: Rick Tache, a prominent intellectual property attorney joined the Orange County office; longtime bankruptcy and financial restructurings attorney Howard Steinberg joined its Los Angeles office; and Ginger Heyman Pigott, a litigator in the Pharmaceutical, Medical Device & Health Care Litigation practice group, joined the Los Angeles office. Comprised of more than 350 lawyers in more than 30 offices, Greenberg Traurig's Corporate and Securities/M&A Practice provides advice and services to companies and entrepreneurs throughout the Americas, Europe, the Middle East and Asia. Greenberg Traurig's Pharmaceutical, Medical Device & Health Care Litigation Practice Group has more than 100 attorneys. Greenberg Traurig has more than 200 attorneys in California. In addition to Orange County, the firm has offices in Los Angeles, San Francisco, Sacramento and Silicon Valley. About Greenberg Traurig Greenberg Traurig, LLP -- http://www.gtlaw.com/-- is an international, full-service law firm with approximately 1800 attorneys serving clients from 35 offices in the United States, Latin America, Europe, the Middle East and Asia. * Sidley Austin Named Bankruptcy Team of the Year ------------------------------------------------- Sidley Austin LLP was named Bankruptcy Team of the Year for the United States by Chambers & Partners at an awards ceremony held on June 7. The Chambers USA Awards for Excellence are based on research for the 2012 edition of Chambers USA: America's Leading Lawyers for Business. The Chambers USA Awards for Excellence recognize a law firm's pre- eminence in key practice areas. They also recognize notable achievements over the past 12 months including outstanding work, impressive strategic growth and excellence in client service. James Conlan, Co-Chairman of Sidley's firmwide Corporate Reorganization and Bankruptcy practice, said, "We are honored to be recognized by Chambers as having a leading position in the field of optimizing the balance sheets of companies and sovereigns, particularly in these extraordinary times, and we are privileged to have been nominated with the other very fine practices that were among the finalists." The other finalists were Weil, Gotshal & Manges, Kirkland & Ellis, Latham & Watkins, Jones Day and Morrison & Foerster. Co-Chairman Larry Nyhan added, "The Bankruptcy group is indebted to the many diverse practices at Sidley that contributed to our receipt of this prized recognition." Sidley's Corporate Reorganization and Bankruptcy practice is among the largest corporate restructuring groups in the world. The group has more than 80 lawyers located in the firm's Chicago, Frankfurt, Hong Kong, London, Los Angeles and New York offices, plus an additional 60 lawyers from various other practice groups within the firm providing significant support in their respective disciplines. Sidley's larger, public and more recent engagements include lead debtor counsel to Dynegy Holdings, Tribune Companies, Smurfit Stone Container, Lee Enterprises, RH Donnelley, Neenah Foundry Company, Merisant, Owens Corning, Federal-Mogul and the Flintkote Company. Sidley Austin LLP is one of the premier full-service law firms, with approximately 1700 lawyers practicing in 18 U.S. and international cities, including Beijing, Brussels, Frankfurt, Geneva, Hong Kong, London, Shanghai, Singapore, Sydney and Tokyo. This year, Sidley celebrates 30 years in Asia. Repeating its performance in the inaugural 2010 survey, Sidley received the most first-tier national rankings of any U.S. law firm in the 2011/12 U.S.News -- Best Lawyers "Best Law Firms" survey. Sidley was also named the U.S.News -- Best Lawyers "Law Firm of the Year" in both Corporate Law and Securities Regulation in the 2011/12 survey (the first year of such designations). BTI, a Boston-based research and consulting firm, has named Sidley as one of only three firms to have been in the top ten of the BTI Client Service rankings every year since the inception of those rankings in 2001, and as number one in three of those years. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Share- Total Total Holders' Working Assets Equity Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------ -------- ------- ABSOLUTE SOFTWRE ABT CN 127.2 (3.2) 14.0 ACCO BRANDS CORP ACCO US 1,044.9 (68.3) 311.8 AMC NETWORKS-A AMCX US 2,125.8 (1,004.9) 506.4 AMER AXLE & MFG AXL US 2,502.3 (376.4) 264.6 AMER RESTAUR-LP ICTPU US 33.5 (4.0) (6.2) AMERISTAR CASINO ASCA US 2,026.3 (45.8) (13.5) ARRAY BIOPHARMA ARRY US 120.0 (78.8) 28.4 ATLATSA RESOURCE ATL SJ 920.8 (233.7) 20.0 AUTOZONE INC AZO US 6,148.9 (1,416.8) (623.1) BAZAARVOICE INC BV US 46.8 (15.4) (18.2) BOSTON PIZZA R-U BPF-U CN 166.1 (91.7) (1.5) CABLEVISION SY-A CVC US 7,088.5 (5,609.6) (218.0) CAPMARK FINANCIA CPMK US 20,085.1 (933.1) - CARMIKE CINEMAS CKEC US 420.8 (1.9) (26.1) CC MEDIA-A CCMO US 16,489.3 (7,802.6) 1,550.1 CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1) CHENIERE ENERGY CQP US 1,762.3 (574.9) 31.7 CHOICE HOTELS CHH US 443.2 (26.2) 2.1 CIENA CORP CIEN US 1,918.3 (21.1) 918.6 CINCINNATI BELL CBB US 2,657.9 (701.3) (42.6) CLOROX CO CLX US 4,386.0 (106.0) (689.0) CROWN HOLDINGS I CCK US 7,178.0 (82.0) 731.0 DEAN FOODS CO DF US 5,758.6 (52.7) 296.0 DELTA AIR LI DAL US 44,189.0 (1,011.0) (5,347.0) DENNY'S CORP DENN US 336.2 (2.6) (16.3) DIRECTV-A DTV US 21,912.0 (3,377.0) 1,210.0 DISH NETWORK-A DISH US 12,409.5 (55.6) 778.4 DISH NETWORK-A EOT GR 12,409.5 (55.6) 778.4 DOMINO'S PIZZA DPZ US 601.3 (1,365.7) 58.8 DUN & BRADSTREET DNB US 1,903.8 (628.3) (261.0) EDGEN GROUP INC EDG US 555.6 (154.7) 267.4 FIESTA RESTAURAN FRGI US 364.8 (3.2) (9.0) FIFTH & PACIFIC FNP US 796.8 (161.9) 9.7 FREESCALE SEMICO FSL US 3,371.0 (4,472.0) 1,444.0 GENCORP INC GY US 931.2 (189.7) 108.9 GLG PARTNERS INC GLG US 400.0 (285.6) 156.9 GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9 GOLD RESERVE INC GRZ CN 78.3 (25.8) 56.9 GOLD RESERVE INC GRZ US 78.3 (25.8) 56.9 GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5 HCA HOLDINGS INC HCA US 27,139.0 (7,324.0) 1,667.0 HUGHES TELEMATIC HUTC US 94.0 (111.8) (39.0) HUGHES TELEMATIC HUTCU US 94.0 (111.8) (39.0) INCYTE CORP INCY US 293.6 (248.9) 133.9 IPCS INC IPCS US 559.2 (33.0) 72.1 ISTA PHARMACEUTI ISTA US 124.7 (64.8) 2.2 JUST ENERGY GROU JE CN 1,644.4 (394.5) (338.4) JUST ENERGY GROU JE US 1,644.4 (394.5) (338.4) LIVEWIRE ERGOGEN LVVV US 0.1 (0.7) (0.7) LORILLARD INC LO US 3,351.0 (1,666.0) 919.0 MARRIOTT INTL-A MAR US 6,171.0 (848.0) (1,442.0) MEAD JOHNSON MJN US 2,866.7 (28.5) 635.2 MERITOR INC MTOR US 2,565.0 (945.0) 193.0 MERRIMACK PHARMA MACK US 64.4 (43.6) 21.0 MONEYGRAM INTERN MGI US 5,136.2 (92.5) (16.2) NATIONAL CINEMED NCMI US 788.5 (347.4) 102.6 NAVISTAR INTL NAV US 11,503.0 (190.0) 2,238.0 NEXSTAR BROADC-A NXST US 578.2 (179.9) 34.5 NOVADAQ TECHNOLO NDQ CN 23.5 (3.9) 7.5 NPS PHARM INC NPSP US 183.3 (54.4) 130.0 NYMOX PHARMACEUT NYMX US 6.4 (5.2) 2.9 ODYSSEY MARINE OMEX US 21.9 (14.2) (13.9) OMEROS CORP OMER US 21.1 (12.7) 1.0 ORGANOVO HOLDING ONVO US 0.0 (0.1) (0.1) PALM INC PALM US 1,007.2 (6.2) 141.7 PDL BIOPHARMA IN PDLI US 235.0 (243.8) 56.6 PEER REVIEW MEDI PRVW US 1.4 (3.4) (3.8) PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9) PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9) PRIMEDIA INC PRM US 208.0 (91.7) 3.6 PROOFPOINT INC PFPT US 64.7 (29.1) (33.7) PROTECTION ONE PONE US 562.9 (61.8) (7.6) QUALITY DISTRIBU QLTY US 330.8 (67.6) 54.5 REGAL ENTERTAI-A RGC US 2,307.0 (552.6) 46.5 RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4) REVLON INC-A REV US 1,156.7 (679.6) 184.9 REXNORD CORP RXN US 3,290.9 (80.8) 551.0 RURAL/METRO CORP RURL US 303.7 (92.1) 72.4 SALLY BEAUTY HOL SBH US 1,789.9 (69.2) 478.8 SINCLAIR BROAD-A SBGI US 1,771.2 (87.2) 3.9 SPLUNK INC SPLK US 82.2 (0.7) 1.1 TAUBMAN CENTERS TCO US 3,096.4 (275.8) - THRESHOLD PHARMA THLD US 89.7 (77.4) 72.8 UNISYS CORP UIS US 2,455.6 (1,240.4) 430.5 VECTOR GROUP LTD VGR US 886.1 (132.7) 145.6 VERISIGN INC VRSN US 1,882.8 (71.3) 831.1 VERISK ANALYTI-A VRSK US 1,892.0 (10.3) (147.7) VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3) WEIGHT WATCHERS WTW US 1,176.1 (1,856.8) (1,057.9) ********* 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 ***