/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/120706.mbx T R O U B L E D C O M P A N Y R E P O R T E R Friday, July 6, 2012, Vol. 16, No. 186 Headlines 10717 LLC: Taps Rosenberg Musso as Bankruptcy Counsel 38 STUDIOS: EDC to Go After 3rd Parties Linked With Loan Guarantee ACCENTIA BIOPHARMACEUTICALS: Registers 1.6 Million Common Shares AE BIOFUELS: AAFK Sells $400,000 Subordinated Notes to Third Eye AIRTOUCH COMMUNICATIONS: Issues $1MM Unsecured Promissory Note AMERICAN AIRLINES: To Pay $3.6MM to FMIC for Jet Fuel Depot Fire AMERICAN APPAREL: A. Chehebar & W. Mauer Elected to Board AMERICAN ORIENTAL: Pomerantz Law Files Class Action Suit AMERICAN BABY: UK Manufacturer to Cover Product-Liability Claims AMERICAN REALTY FUNDS: Posts $140,900 Net Loss in March 31 Quarter AMERICAN WEST: Wants Access to Cash Collateral Until Aug. 28 AMERICAN WEST: Resolves Construction Defect Litigation ARMAND ASSANTE: Wants to Auction 100 Acres of New York Property AURA SYSTEMS: Amends Fiscal 2012 Annual Report AUSTRALIAN-CANADIAN OIL: Posts $69,900 Net Loss in Q1 2012 BALL GROUND: Has Until Friday to Stop Operations & Vacate Lease BERNARD L. MADOFF: Court Snubs Investors' Appeal on Money Recovery BIOFUEL ENERGY: Douglas Anderson Promoted to COO BLAST ENERGY: Issues 81.8MM Shares to Extinguish $1.6MM Debt BROADWAY FINANCIAL: Sells Common Shares to Execs. for $150,000 BROWNIE'S MARINE: Posts $441,200 Net Loss in Q1 2012 CASPIAN SERVICES: Posts $3.8 Million Net Loss in March 31 Quarter CELL THERAPEUTICS: Estimates $7.2 Million Net Loss in May CHINA CEETOP.COM: Posts $238,300 Net Loss in Q1 2012 CITY NATIONAL: P. Pinkett & H. Williams Elected to Board CLARE AT WATER: OK'd to Obtain $12MM DIP Loan from Redwood Capital CLARE OAKS: Pays $15,000 to Extend Auction Deadline to Aug. 21 COMMERCETEL CORP: Posts $1.69 Million Net Loss in Q1 2012 COMMUNITY SHORES: Bruce Essex Owns 8.5% of Total Shares CONTRACT RESEARCH: Wants Until Nov. 21 to Propose Chapter 11 Plan CROATAN SURF: Plan Outline Hearing Continued Until Aug. 23 CYBERDEFENDER: Changes Name to CYDE Liquidating Co. DELTA PETROLEUM: Lays Off EVP Stanley Freedman, Other Employees DEWEY & LEBOEUF: US Trustee Tries to Block Hiring of Law Firms DEWEY & LEBOEUF: Former Partners' Panel Taps KBT&F as Counsel DYNEGY HOLDINGS: Disclosures Okayed; Confirmation Hearing Sept. 5 EAST COAST: Wins Confirmation of Reorganization Plan EASTMAN KODAK: Wins Approval of Deloitte as Tax Advisor EASTMAN KODAK: Wins Approval to Expand PwC Work EASTMAN KODAK: Files Rule 2015.3 Report as of March 31 ENERGY CONVERSION: Auction of Uni-Solar Set July 12-13 ENERGY FUTURE: James Huffines Resign from Board of Directors FIELD FAMILY: Involuntary Chapter 11 Case Summary FLETCHER INT'L: Fund Fights Bermuda Liquidation in New York FR 160: Section 341(a) Meeting Scheduled for July 26 GIBRALTAR KENTUCKY: Robert Derderian Approved as Accountant GORDIAN MEDICAL: Wants Exclusive Plan Filing Stretched to Oct. 31 GRANDPARENTS.COM INC: Posts $4.5 Million Net Loss in Q1 2012 GRANITE DELLS: Hearing on Case Dismissal Plea Set for July 27 GRANITE DELLS: Tri-City Investment Wants to File Alternative Plan GULF, COLORADO & SAN SABA: Railway Files for Chapter 11 in Austin H&M OIL: Prospect Capital Wants DIP/Cash Collateral Motions Denied H&M OIL: Court Approves Anderson Tobin as Chapter 11 Counsel HAMPTON ROADS: Anchorage Has 24.9% Ownership as of June 27 HAMPTON ROADS: Carlyle Group Hikes Stake to 24.9% HARRISBURG, PA: May Run Out of Cash by October HAWKER BEECHCRAFT: Akin Gump Approved as Committee's Legal Counsel HAWKER BEECHCRAFT: Crowe & Dunlevy OK'd as Committee's FAA Counsel HAWKER BEECHCRAFT: FTI Approved as Committee's Advisor HAWKER BEECHCRAFT: Kurtzman Carson Approved as Information Agent HOLDINGS OF EVANS: SFG Venture Wants Deal Lifting Stay Approved HOLDINGS OF EVANS: Allowed to Use Cash Collateral Until Aug. 31 HRK HOLDINGS: Port Manatee Wants to Be Paid Before Employees HUGHES TELEMATICS: Waiting Period of Proposed Merger Terminated INKSURE TECHNOLOGIES: Posts $470,000 Net Loss in Q1 2012 INNER CITY: Plan Filing Exclusivity Expires July 17 INTELLIPHARMACEUTICS: Posts $1.4-Mil. Net Loss in May 31 Quarter INTERNATIONAL TEXTILE: Authorized Series A Shares Hiked to 13MM JOHN D. OIL: Exclusive Plan Filing Period Extended to Sept. 7 LDK SOLAR: Exec. Director Y. Shao Resigns for Personal Reasons LEE'S FORD DOCK: Files for Chapter 11 in London, Ky LEHMAN BROTHERS: To Reap $1.5-Bil. From Aurora Sale LEHMAN BROTHERS: JPMorgan Fails to Strike Objection to Claim LEHMAN BROTHERS: Elliot Demands $3.2-Bil. Payment to Creditors LEHMAN BROTHERS: LBI Trustee Seeks to Sell Invicta Notes LEHMAN BROTHERS: Seeks Revision of Claims Resolution Orders LIBERTY FLAG: $272,000 Judgment Prompts Chapter 11 Filing LSP ENERGY: Withdraws Plea to Hire PA Consulting as Energy Expert M WAIKIKI: Marriott Settles With Modern Honolulu Hotel Over Plan MARIANA RETIREMENT: Counsel Says Chapter 11 Talks Started in 2011 MEDIA GENERAL: Closes $142MM Sale of Newspapers to World Media METRO TOWER: Files for Chapter 11 to Avoid Foreclosure MPG OFFICE: To Issue 724,264 Shares Under 2003 Incentive Plan MMRGLOBAL INC: Terminates Investment Agreement with Dutchess MORGAN INDUSTRIES: Files Schedules of Assets and Liabilities NEW WESTERN ENERGY: Posts $105,900 Net Loss in Q2 2012 NEWPAGE CORP: Says Lenders Not Interested in Verso's Offer NEWPAGE CORP: Court OKs Extension of PwC's Scope of Retention NEWPAGE CORP: Quinn Emanuel Approved as Panel's Conflicts Counsel PACIFIC MONARCH: July 12 Hearing on Exclusivity Extension PACIFIC MONARCH: Taps Gibson Dunn and ST&G as Bankruptcy Counsel PETTERS COMPANY: Trustee Consents to PBE's Cash Collateral Use PITTSBURGH CORNING: Court OKs League Park as Financial Advisor PITTSBURG CORNING: July 20 Hearing on DIP Loan Extension to 2015 PLC SYSTEMS: Secures $1 Million Financing from Genesis QUANTUM FUEL: D. Mazaika Named Exec. Director of Strategic Dev. RANCHER ENERGY: Seeks Court Approval of GasRock Settlement RESIDENTIAL CAPITAL: Committee Hiring Kramer Levin as Counsel RESIDENTIAL CAPITAL: Committee Proposes AlixPartners as Advisor RESIDENTIAL CAPITAL: Green Planet Sues GMAC Mortgage RESIDENTIAL CAPITAL: Residential Funding Files Schedules RG STEEL: To Abandon Sparrows Point Cleanup, Environmentalists Say RITE AID: Files Form 10-Q, Posts $28.1MM Net Loss in June 2 Qtr. ROBERTS HOTELS: Gets Final OK to Use Lender's Cash Collateral SAINT VINCENTS: Court Confirms Second Amended Chapter 11 Plan SAAB CARS: Wants to Hire Donlin Recano as Balloting Agent SB PARTNERS: Incurs $280,500 Net Loss in First Quarter SHENGDATECH INC: Plan Confirmation Hearing Scheduled for Aug. 30 STANFORD FINANCIAL: SIPC Won't Pay Defrauded Investors STOCKTON, CA: Sets Aside More Than $3MM for 1st Year in Case TALON THERAPEUTICS: Joseph Landy Discloses 92.4% Equity Stake TIBET PHARMACEUTICALS: Howard G. Smith Launches Class Suit TRIDENT MICROSYSTEMS: Wants Until Aug. 31 to Propose Ch. 11 Plan UNIVERSAL BIOENERGY: Gets Final OK to Distribute Stock Dividend VIEW SYSTEMS: Agrees to Buy ESG for 2 Million Shares VITRO SAB: Bondholders Request Ability to Seize Assets VOLKSWAGEN-SPRINGFIELD: Wants BB&T's Stay Relief Motion Denied VUZIX CORP: Borrows $619,122 from LC Capital Under Amended Pact WPCS INTERNATIONAL: Appoints C. Benton to Board of Directors * McKooL Smith Co-Founder Named 2012 "Trial Lawyer of the Year" * Kramer Levin's Wins Healthcare Services Turnaround Atlas Award * Pearson Butler Recognized by National Trial Lawyers Top 40 * BOOK REVIEW: Performance Evaluation of Hedge Funds ********* 10717 LLC: Taps Rosenberg Musso as Bankruptcy Counsel ----------------------------------------------------- 10717 LLC asks the U.S. Bankruptcy Court for the Eastern District of New York for permission to employ Rosenberg, Musso & Weiner as counsel. The Debtor desires to employ R, M & W under a general retainer because of the extensive legal services required. A retainer of $5,000 has been paid by Robert Young, president and secretary of Hewitt Associates, which owns 49% of the Debtor. To the best of the Debtor's knowledge, R, M & W represents no interest adverse to the Debtor or the estate. About 10717 LLC Brooklyn, New York-based 10717 LLC filed a Chapter 11 bankruptcy petition (Banrk. E.D.N.Y. Case No. 12-41998) on March 21, 2012. 10717 LLC says it has total assets of $14.0 million and total debts of $14.35 million. It owns 18 acres of land in the town of Thompson, Sullivan County, New York. The property secures a $1.3 million debt. Judge Jerome Feller presides over the case. The Debtor is represented by Bruce Weiner, Esq., at Rosenberg Musso & Weiner LLP, in Brooklyn. The U.S. Trustee has appointed Henry Fulton, Elizabeth Van Oss and Isiah Milian to the Official Committee of Unsecured Creditors. Charles Petri is the person who runs the day to day operations of the debtor. He is the managing member of 10717 LLC. The Official Committee of Unsecured Creditors is represented by the law office of Ira R. Abel, Esq. 38 STUDIOS: EDC to Go After 3rd Parties Linked With Loan Guarantee ------------------------------------------------------------------ Gov. Lincoln D. Chafee has announced that the R.I. Economic Development Corporation has hired Wistow & Barylick as special counsel to pursue legal action against third parties connected with the 38 Studios LLC loan guarantee, Patrick Anderson at PBN.com reports. According to PBN.com, Max Wistow said that his firm would work with the state-commissioned 38 Studios forensic audit team to search for liable third parties and try to recoup some lost taxpayer money. PBN.com states that Wistow & Barylick have been retained on a contingency basis, and will be paid 16.66% of funds recovered. PBN.com relates that Wistow & Barylick will be independent from Shechtman Halperin Savage LLP, which is representing the state in 38 Studios bankruptcy proceedings. 38 Studios LLC, a video-game developer founded by former Boston Red Sox pitcher Curt Schilling, filed for liquidation last week without attempting to reorganize. Although based in Providence, Rhode Island, the company filed the Chapter 7 petition in Delaware (Case No. 12-11743). ACCENTIA BIOPHARMACEUTICALS: Registers 1.6 Million Common Shares ---------------------------------------------------------------- Accentia Biopharmaceuticals, Inc., filed with the U.S. Securities and Exchange Commission a Form S-1 covering an aggregate of up to 1,607,148 shares of the Company's common stock, $0.001 par value per share, that may be offered from time to time by Ken Chan, Arnie Jessick, Lewis Kaufman, et al. The shares being offered by this prospectus consist of: * up to 1,071,432 shares currently held by the selling shareholders; and * up to 535,716 shares issuable upon the exercise of the common stock purchase warrants issued by the Company to the selling shareholders. The proposed maximum aggregate offering price is $369,645. This prospectus also covers any additional shares of common stock that may become issuable upon any anti-dilution adjustment pursuant to the terms of the common stock purchase warrants issued to the selling shareholders by reason of stock splits, stock dividends, and similar events. The shares and common stock purchase warrants were acquired by the selling shareholders in a private placement by the Company that closed on June 15, 2012. The selling shareholders will receive all of the proceeds from the sale of the common stock offered by this prospectus. The Company will not receive any of the proceeds from the sale of common stock by the selling shareholders, although the Company may receive proceeds from the exercise of the common stock purchase warrants by the selling shareholders, if exercised. A copy of the prospectus is available for free at: http://is.gd/vj8gH6 About Accentia Biopharmaceuticals Headquartered in Tampa, Florida, Accentia Biopharmaceuticals, Inc. (PINK: "ABPI") -- http://www.Accentia.net/-- is a biotechnology company that is developing Revimmune as a system of care for the treatment of autoimmune diseases. Through subsidiary, Biovest International, Inc., it is developing BiovaxID as a therapeutic cancer vaccine for treatment of follicular non-Hodgkin?s lymphoma (FL) and mantle cell lymphoma (MCL). Through subsidiary, Analytica International, Inc., it conducts a health economics research and consulting business, which it market to the pharmaceutical and biotechnology industries, using its operating cash flow to support its corporate administration and product development activities. Accentia BioPharmaceuticals and nine affiliates filed for Chapter 11 protection (Bankr. M.D. Fla. Lead Case No. 08-17795) on Nov. 10, 2008. Accentia emerged from bankruptcy on Nov. 17, 2012, after receiving confirmation of a reorganization plan on Nov. 2, 2010. The Company's balance sheet at March 31, 2012, showed $4.63 million in total assets, $88.97 million in total liabilities, and a $84.34 million total stockholders' deficit. Cash and cash equivalents at March 31, 2012, was $1.9 million. The Company intends to meet its cash requirements through the use of cash on hand, strategic transactions such as collaborations and licensing, short-term borrowings, and debt and equity financings. The Company's independent registered public accounting firm's report included a "going concern" qualification on the financial statements for the year ended Sept. 30, 2011, citing significant losses and working capital deficits at that date, which raised substantial doubt about the Company's ability to continue as a going concern. AE BIOFUELS: AAFK Sells $400,000 Subordinated Notes to Third Eye ---------------------------------------------------------------- Aemetis Advanced Fuels Keyes, Inc. (AAFK), a subsidiary of Aemetis, Inc., formerly known as AE Biofuels, Inc., entered into a Note Purchase Agreement with Third Eye Capital Corporation pursuant to which AAFK sold 15% Subordinated Promissory Notes in the aggregate principal amount of $400,000. The Promissory Notes are guaranteed by Aemetis and are due and payable upon the earlier of: (i) July 6, 2012; (ii) completion of an equity financing by AAFK or Aemetis in an amount of not less than $25,000,000; (iii) the completion of an Initial Public Offering by AAFK or Aemetis; (iv) the completion of a revolving credit facility upon the acquisition of an ethanol facility; or (v) after the occurrence of an Event of Default, including failure to pay interest or principal when due; breaches of note covenants; false, incorrect, misleading or incorrect representations and warranties; voluntary bankruptcy or insolvency proceedings not discharged within 60 days. A copy of the Note Purchase Agreement is available for free at: http://is.gd/F5da6U About AE Biofuels AE Biofuels, Inc. (OTC BB: AEBF) -- http://www.aebiofuels.com/-- is a biofuels company based in Cupertino, California, developing sustainable solutions to address the world's renewable energy needs. The Company is commercializing its patent-pending next- generation cellulosic ethanol technology that enables the production of biofuels from both non-food and traditional feedstocks. Its wholly-owned Universal Biofuels subsidiary built and operates a nameplate 50 million gallon per year biodiesel production facility on the east coast of India. The Company reported a net loss of $1.72 million on $1.59 million of sales for the three months ended Sept. 30, 2010, compared with a net loss of $3.78 million on $4.05 million of sales for the same period a year earlier. BDO Seidman, LLP, in San Jose, Calif., expressed substantial doubt about AE Biofuels' ability to continue as a going concern, following the Company's 2009 results. The independent auditors noted that the Company has incurred recurring losses, and has a working capital deficit and total stockholders' deficit as of December 31, 2009. The Company's balance sheet at Sept. 30, 2010, showed $20.23 million in total assets, $29.03 million in total liabilities, all current, and a stockholders' deficit of $8.80 million. The Company has not filed financial reports after filing its Form 10-Q for the quarter ended Sept. 30, 2010. AIRTOUCH COMMUNICATIONS: Issues $1MM Unsecured Promissory Note -------------------------------------------------------------- AirTouch Communications, Inc., on June 25, 2012, entered into a Note Purchase Agreement with an unaffiliated investor pursuant to which the Company issued and sold an unsecured promissory note for $1,000,000. The note is in the original principal amount of $1,000,000 and bears interest on the unpaid principal amount at the rate of 10% per annum. Upon the maturity of the note, the Company is required to pay the holder a loan fee in the amount of $100,000. All principal, interest and loan fees are due and payable on the one year anniversary of the note and may be prepaid by the Company without penalty. On the same day, the Company also entered into a consulting agreement with the note holder pursuant to which the Company agreed to issue 363,636 shares of the Company's common stock in consideration of certain consulting services to be rendered. In the event that the Company does not sell at least 100,000 units of its SmartLinX product during the first 12 months following the date of the consulting agreement, the Company shall be required to issue to the holder an additional 140,000 shares of the Company's common stock. About Airtouch Newport Beach, Calif.-based AirTouch Communications, Inc., develops and markets communication devices capable of amplifying the wireless signal as a core enabling technology platform and converging them with other services and applications for consumers based on our patent portfolio. The Company currently offers its DM1000 (cell@home) and HomeConneX(R) X1500 products through various channels, including a major U.S. carrier, and is working to bring its higher performance, lower cost next generation SmartLinX(TM) series of products to the global market. In the auditors' report accompanying the financial statements for year ended Dec. 31, 2011, Anton & Chia, LLP, in Irvine, California, expressed substantial doubt about Waxess Holdings' ability to continue as a going concern. The independent auditors noted that the Company has sustained accumulated losses from operations totaling $16 million at Dec. 31, 2011. The Company reported a net loss of $9.4 million on $326,270 of net revenue in 2011, compared with a net loss of $4.8 million on $160,441 of net revenue in 2010. The Company's balance sheet at March 31, 2012, showed $5.69 million in total assets, $1.15 million in total liabilities and $4.53 million in total stockholders' equity. AMERICAN AIRLINES: To Pay $3.6MM to FMIC for Jet Fuel Depot Fire ---------------------------------------------------------------- AMR Corp. and its affiliates and Factory Mutual Insurance Company entered into a Court-approved stipulation providing that American Airlines, Inc., is entitled to a final payment in the sum of $3,615,560 on account of all claims associated with a prepetition loss resulting from a fire at a jet fuel depot at the Miami International Airport, which caused property damage to prepaid fuel owned by American, as well as time element damage to American in the form of cancelled flights. About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. American Airlines, American Eagle and the AmericanConnection carrier serve 260 airports in more than 50 countries and territories with, on average, more than 3,300 daily flights. The combined network fleet numbers more than 900 aircraft. The Company reported a net loss of $884 million on $18.02 billion of total operating revenues for the nine months ended Sept. 30, 2011. AMR recorded a net loss of $471 million in the year 2010, a net loss of $1.5 billion in 2009, and a net loss of $2.1 billion in 2008. 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 APPAREL: A. Chehebar & W. Mauer Elected to Board --------------------------------------------------------- American Apparel, Inc., held its 2012 annual meeting of stockholders on June 28, 2012. Alberto Chehebar and William Mauer were elected to the Board of Directors, each to serve for a term of three years and until his successor is duly elected and qualified, or that director's earlier death, resignation or removal. The stockholders ratified the appointment of Marcum LLP as the Company's independent auditors for the fiscal year ending Dec. 31, 2012, and approved an amendment to the Existing Lion Warrants to: (i) extend the expiration date of the Existing Lion Warrants from Feb. 18, 2018, to Feb. 18, 2022; and (ii) reduce the exercise price thereof, as that price may be adjusted from time to time pursuant to the adjustments specified in each respective Existing Lion Warrant or the Lion Credit Agreement, by $0.25 per share in the event of the Company's failure to achieve certain specified quarterly levels of EBITDA. About American Apparel Los Angeles, Calif.-based American Apparel, Inc. (NYSE Amex: APP) -- http://www.americanapparel.com/-- is a vertically integrated manufacturer, distributor, and retailer of branded fashion basic apparel. As of September 2010, American Apparel employed over 10,000 people and operated 278 retail stores in 20 countries, including the United States, Canada, Mexico, Brazil, United Kingdom, Ireland, Austria, Belgium, France, Germany, Italy, the Netherlands, Spain, Sweden, Switzerland, Israel, Australia, Japan, South Korea and China. Amid liquidity problems and declining sales, American Apparel in early 2011 reportedly tapped law firm Skadden, Arps, Slate, Meagher & Flom and investment bank Rothschild Inc. for advice on a restructuring. In April 2011, American Apparel said it raised $14.9 million in rescue financing from a group of investors led by Canadian financier Michael Serruya and private equity firm Delavaco Capital Corp., allowing the casual clothing retailer to meet obligations to its lenders for the time being. Under the deal, the investors were buying 15.8 million shares of common stock at 90 cents apiece. The deal allows the investors to purchase additional 27.4 million shares at the same price. The Company reported a net loss of $39.31 million in 2011 and a net loss of $86.31 million in 2010. The Company's balance sheet at March 31, 2012, showed $331.38 million in total assets, $288.97 million in total liabilities and $42.41 million in total stockholders' equity. AMERICAN ORIENTAL: Pomerantz Law Files Class Action Suit -------------------------------------------------------- Pomerantz Haudek Grossman & Gross LLP has filed a federal securities class action 12-cv-05789-JAK-RZx in United States District Court, Central District of California, on behalf of all persons who purchased or otherwise acquired American Oriental Bioengineering, Inc. securities between Nov. 9, 2009 and June 15, 2012, inclusive. This securities class action seeks to recover damages caused by the Company's violations of the federal securities laws and to pursue remedies under Sec. 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder against the Company and certain of its top officials. Rachelle R. Boyle E-mail: rrboyle@pomlaw.com Tel No.: 888.476.6529 AOBI is a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of pharmaceutical and healthcare products. The Complaint alleges that, throughout the Class Period, defendants made false and/or misleading statements, as well as failed to disclose that: (1) certain of the Company's capsule products maintained chrome levels far exceeding humanly tolerable limits; (2) the Company's financial statements contained material inconsistencies; (3) the Company's internal controls over financial reporting were deficient; and (4) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times. On March 16, 2012, the Company's independent registered public accounting firm, Ernst & Young Hua Ming informed the Company's Audit Committee of certain inconsistencies in the Company's financial statements during its audit for the fiscal year 2011. On April 19, 2012, the Company disclosed that four of its five manufacturing subsidiaries were undergoing "onsite short notice inspections" by the Chinese State Food and Drug Administration after discovering thirteen types of capsule products with chrome levels far exceeding humanly tolerable limits. After being delisted by the New York Stock Exchange on May 25, 2012, the Company's common stock plummeted $0.94 or nearly 62%, to close at $0.58 when it resumed trading over the counter on May 29, 2012. On June 15, 2012, the Company disclosed that it had dismissed E&Y as its independent registered public accounting firm. In addition, the Company announced that E&Y had withdrawn its audit reports for the Company's financial statements for the years ended 2009 and 2010, after E&Y concluded that it could no longer rely on management's representations in connection with (a) its audits of the financial statements for years ended December 2009 and 2010; (b) its audit of the effectiveness of the Company's internal control over financial reporting as of December 31, 2009 and 2010; and (c) its review of the Company's unaudited interim financial statements for the quarters from September 30, 2009 through September 30, 2011. The Pomerantz Firm -- http://www.pomerantzlaw.com/-- with offices in New York and Chicago, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities. AMERICAN BABY: UK Manufacturer to Cover Product-Liability Claims ---------------------------------------------------------------- Stephanie Gleason at Bankruptcy Beat reports that U.K. manufacturer Maclaren will cover product-liability claims against American Baby Products, Inc., doing business as Maclaren USA. Maclaren said in a news release "In a cooperative effort with the bankruptcy trustee and American Baby Products' insurers, Maclaren is making arrangements to cover any money owed by American Baby Products on all product liability claims pending against the Company as of May 1, 2012, the bankruptcy claim cut-off date." According to the news release, Maclaren will cover the insurance deductibles for the product liability claims as well as "any uninsured claims where appropriate." Maclaren has also decided to start distributing its products directly, Ms. Gleason relates. Court documents show that since Maclaren ended its distribution agreement with Maclaren USA/American Baby Products, it had started distributing its products in the U.S. through a company called Maclaren NA Inc. About American Baby Products American Baby Products, Inc., doing business as Maclaren USA, filed for Chapter 7 bankruptcy (Bankr. D. Conn. Case No. 11-52541) on Dec. 29, 2011, listing under $50,000 in assets and between $10 million to $50 million in debts. American Baby Products is the U.S. unit of the high-end stroller manufacturer Maclaren. The bankruptcy filing halted seven pending lawsuits against it. The Debtor listed the parents of nine children as top unsecured creditors with unknown claim amounts. The Debtor listed its largest unsecured creditor, owed $13.1 million of the company's total $15.9 million in liabilities, as Maclaren (HK) Limited, Maclaren's Chinese subsidiary. AMERICAN REALTY FUNDS: Posts $140,900 Net Loss in March 31 Quarter ------------------------------------------------------------------ American Realty Funds Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $140,878 on $0 revenue for the three months ended March 31, 2012, compared with a net loss of $55,954 on $0 revenue for the three months ended March 31, 2011. For the nine months ended March 31, 2012, the Company reported a net loss of $213,959 on $52,387 of revenues, compared with a net loss of $133,248 on $0 revenue for the nine months ended March 31, 2011. The Company's balance sheet at March 31, 2012, showed $2,460,013 in total assets, $2,253,799 in total liabilities, and stockholders' equity of $206,214. McConnell & Jones, LLP, in Houston, Texas, expressed substantial doubt about American Realty's ability to continue as a going concern, following the Company's results for the fiscal year ended June 30, 2011. The independent auditors noted that the Company had incurred a substantial loss, had negative cash flow from operations and no revenues. A copy of the Form 10-Q is available for free at: http://is.gd/yr58t9 Bay City, Michigan-based American Realty Funds Corporation purchases, renovates and resells residential real estate in the United States. The Company typically sells its properties under a land contract to buyers who do not have sufficient cash to purchase a property outright and are unable to obtain mortgage financing from third-parties. AMERICAN WEST: Wants Access to Cash Collateral Until Aug. 28 ------------------------------------------------------------ American West Development, Inc., asks the U.S. Bankruptcy Court for the District of Nevada to approve the second stipulated agreement regarding the use of cash collateral. Pursuant to the agreement between the Debtor and its prepetition secured lenders -- California Bank & Trust, as administrative agent and lead arranger, and the lenders party thereto -- the Debtor will have access to the cash collateral until Aug. 28, 2012. A copy of the agreed budget is available for free at: http://bankrupt.com/misc/AMERICANWEST_cashcoll_2ndstipulation.pdf As reported in the Troubled Company Reporter on March 23, 2012, the Debtor is a borrower pursuant to a December 2009 term loan credit agreement among California Bank & Trust (as administrative agent and lead arranger), the lenders party thereto, and certain guarantors. The total outstanding principal debt under the Credit Agreement was $177,506,450 as of the Petition Date, along with interest, fees and charges accrued and accruing thereon and chargeable with respect thereto. The borrowings under the Credit Agreement had an initial maturity date of Oct. 6, 2011, with the potential for two additional one year extensions at the Borrowers' option. The Borrowers exercised their option for the first one year extension through Oct. 6, 2012. As security for borrowings under the Credit Agreement, the Borrowers granted the Prepetition Lenders, among other liens, a security interest in all of their personal property. The portions of the collateral that are owned by Debtor primarily consists of utility, bond and similar security deposits, general intangibles, furniture, fixtures and equipment, contract rights and the right of Debtor to receive deferred payments due from certain affiliates of Debtor, representing amounts due for lot development, unit construction and other services for which Debtor has acted as general contractor pursuant to agreements memorialized as (i) various Marketing and Administrative Services Agreements between Debtor and certain affiliated home-selling entities, and (ii) various Design-Build Agreements between Debtor, certain affiliated land-owning entities, and certain affiliated home- selling entities. As of Nov. 30, 2011, the book value of the Receivable was $78,177,097. The Debtor told the Bankruptcy Court that its ability to use cash collateral is critical to Debtor's ability to continue as a going concern during the course of this Chapter 11 case. The Debtor will use cash collateral to fund the costs of administering Debtor's estate, including, without limitation, (i) funding the operations of Debtor's business, (ii) making adequate protection payments to the Prepetition Lenders, (iii) paying expenses incurred for the administration of the Chapter 11 case, including compensation of professional fees and expenses, (iv) paying contractual obligations consistent with the final court order, and (v) repaying borrowings under any debtor-in-possession financing. Without the ability to use cash collateral, Debtor and its estate would suffer immediate and irreparable harm. On March 1, 2012, the Debtor entered with the Administrative Agent and the Prepetition Lenders into a cash collateral agreement. A copy of the cash collateral agreement, along with the budget, is available for free at: http://bankrupt.com/misc/AMERICAN_WEST_cashcoll_agreement.pdf The Debtor projected that it will need to use more than $10,800,000 of cash collateral (exclusive of its existing cash as of the Petition Date and any debtor-in-possession financing borrowings) during the first 13 weeks following the Petition Date in order to meet its operating expenses and make interest-only adequate protection payments to the Prepetition Lenders. The Initial Cash Budget is based on Debtor's internally prepared projections of home sales and development expenses -- if actual home sales and development expenses do not match projections, then Debtor's need to use cash collateral and borrow under the DIP Financing may differ from the amounts set forth in the Initial Cash Budget. In addition, Debtor estimates that it will incur approximately $1,521,000 in expenses associated with the Chapter 11 case during this same period. With this necessity in mind, Debtor negotiated the Cash Collateral Agreement with the Prepetition Lenders. As adequate protection, the Prepetition Lenders will receive: (a) monthly, on or before the first day of each month and continuing during the pendency of the Chapter 11 case, adequate protection payments made by the Debtor to the Administrative Agent for the benefit of the Prepetition Lenders in an amount equal to the highest non-default rate of interest applicable from time to time to amounts outstanding under the Credit Agreement multiplied by $49,635,000, and the automatic stay will be vacated and modified to the extent necessary to permit Debtor to make Adequate Protection Payments and the Prepetition Lenders to apply them against the Prepetition Lenders' Claims; (b) replacement liens to secure the amount of any Value Diminution, which Replacement Liens will: (i) be subject and junior only to the carve-out, liens to secure the debtor-in-possession Financing and any prior liens, (ii) attach to: (x) the Debtor Collateral and any proceeds thereof, and (y) causes of action under Chapter 5 of the Bankruptcy Code and the proceeds thereof, and any other assets of Debtor, and (iii) be in addition to the Prepetition Lenders' Claims and liens; (c) a superpriority claim against Debtor's estate, subject and junior only to the Carve-Out and any superpriority claim and lien of the DIP Financing lender. The Prepetition Lenders will consent to and not oppose the Debtor's request for approval of DIP Financing to be provided by AWH Ventures, Inc., consisting of a revolving credit facility in an amount not to exceed $10 million, and secured by (i) a first priority lien on the avoidance actions and any other previously unencumbered assets of Debtor, and (ii) a junior lien on the collateral and any other assets of Debtor that are subject to a valid and perfected lien as of the Petition Date; provided, however, that the DIP Financing will be subject to a subordination and inter-creditor agreement agreed upon by the Prepetition Lenders and the DIP Lender. The Prepetition Lenders have agreed to a carve-out for (i) all fees required to be paid to the Clerk of the Bankruptcy Court and to the Office of the U.S. Trustee, and (ii) only to the extent amounts are not available under the Cash Budget, an amount not exceeding $3 million in the aggregate, which amount may be used after the occurrence and during the continuation of an event of default, to pay the fees and expenses of professionals retained by Debtor and any Committee of Unsecured Creditors that are allowed by the Court. Upon written notice from Administrative Agent on behalf of the Prepetition Lenders, the events of default include, among other things, the (i) appointment of a Chapter 11 trustee with respect to the Chapter 11 case; (ii) appointment of an examiner with expanded powers with respect to the Chapter 11 Case; (iii) approval of a motion granting a party (other than the DIP financing lender) any lien, superpriority claim, or other administrative expense claim which is senior to or pari passu with the Prepetition Lenders' Superpriority Claim; (vii) reversal, vacatur or stay of the effectiveness of the interim court order; (viii) the interim court order being amended, supplemented or otherwise modified without the prior written consent of the Prepetition Lenders; and (ix) any use of cash collateral to make a payment. 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 $55.39 million in assets and $208.5 million in liabilities as of the Chapter 11 filing. AMERICAN WEST: Resolves Construction Defect Litigation ------------------------------------------------------ American West Development, Inc., asks the U.S. Bankruptcy Court for the District of Nevada for an order: i) approving the use of estate property for contribution to and partial satisfaction of the settlement payment; and ii) approving the settlement agreement that resolves the construction defect litigation pending in the Eighth Judicial District Court, Clark County, Nevada, and contemplates payments totaling $902,895 in the aggregate payable to the trust account of counsel for the plaintiffs. The Debtor relates that the use of estate property is pursuant to settlement agreement between American West Homes, Inc., and plaintiffs Michael D. Colford, Sr., and Dora Colford, et. al., in State Court Case No. A593923. The Debtor also seeks the Court's (i) approval of the use of the insurance policies under which Debtor is an insured, as is AWH, and the proceeds to be paid; and (ii) authorization to the extent necessary for Debtor and the parties to the settlement agreement to take the actions contemplated by the settlement agreement, which provides for the dismissal of the Colford Litigation with prejudice in consideration of the settlement payment. A full-text copy of the settlement is available for free at: http://bankrupt.com/misc/AMERICANWEST_Stipulation.pdf 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 $55.39 million in assets and $208.5 million in liabilities as of the Chapter 11 filing. ARMAND ASSANTE: Wants to Auction 100 Acres of New York Property --------------------------------------------------------------- Jacqueline Palank at Bankruptcy Beat reports that Armand Assante is seeking Chief U.S. Bankruptcy Court Judge Cecelia G. Morris' permission to sell 100 acres of his New York property through an auction in August. According to court papers, Four Square Development LLC is offering $2.25 million for the property, and rival bids would have to exceed that by at least $25,000. Court papers say that Four Square is planning to divide the property into at least 40 two- acre lots to build luxury homes. Mr. Assante owns a total of three properties on Hulsetown Road in Campbell Hall, New York. He had five mortgage notes on the properties, which his financial advisers recommended he refinance in 2005, Bankruptcy Beat relates. Mr. Assante, says the report, obtained a $1.5 million loan from Eastern Savings Bank, making required payments until January 2009. Bankruptcy Beat states that Mr. Assante expects the sale will raise enough money to satisfy the Eastern debt, and even have some left over for unsecured creditors. Judge Morris will hold a hearing on July 24 to consider the auction request, Bankruptcy Beat reports. Irish-Italian actor Armand Assante filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 11-37823) on Oct. 7, 2011, to halt the foreclosure sale of his 145-acre horse farm. Mr. Assante often plays a tough guy on film and has been nominated for several Golden Globe awards. Mr. Assante is represented by Josh Denbeaux, Esq. Mr. Assante's bankruptcy petition says he owed $12,138 to the Screen Actors' Guild's credit union, based in Burbank, California. It also said that he owes $36,574 for unpaid taxes for 2006, 2007 and 2009. AURA SYSTEMS: Amends Fiscal 2012 Annual Report ---------------------------------------------- Aura Systems, Inc., filed amendment No. 1 on Form 10-K/A to the Company's annual report on Form 10-K for the fiscal year ended Feb. 29, 2012, originally filed with the U.S. Securities and Exchange Commission on May 29, 2012. The amendment was filed to clarify certain statements appearing in the seventh paragraph of the Company's Liquidity and Capital Resources section on page 23 of the Company's Original Report, which stated that in a subsequent event occurring in April 2012, the Company raised $5 million in a private placement of units. "In April 2012 we entered into a securities purchase agreement with an accredited investor for the purchase of units with each unit consisting of (1) one share of common stock of the Company, par value $0.0001, and (2) one share purchasable under a warrant, exercisable for 60 months at an exercise price of $1.25 per share, at a purchase price of $0.76 per unit and an aggregate purchase amount of $5 million. We believe the forgoing financing agreement is valid and binding, and we currently anticipate a closing on $5 million of our offered units in the near future, however, we cannot provide any assurances at this time as to whether and closing will occur or when it will occur. Other than the above, we have not yet received commitments as to the remainder of the $10 million offering, and no assurances can be given as to if or when we will be able to raise the full amount of the offering." A copy of the amendment is available for free at: http://is.gd/QQHLxt About Aura Systems El Segundo, Calif.-based Aura Systems, Inc., designs, assembles, tests and sells its proprietary and patented Axial Flux induction machine known as the AuraGen(R) for industrial and commercial applications and VIPER for military applications. Aura Systems reported a net loss of $14.15 million on $3.33 million of net revenues for the year ended Feb. 29, 2012, compared with a net loss of $11.19 million on $3.43 million of net revenues for the year ended Feb. 28, 2011. The Company's balance sheet at Feb. 29, 2012, showed $4.13 million in total assets, $15.73 million in total liabilities and a $11.60 million total stockholders' deficit. Kabani & Company, Inc., issued a "going concern" qualification on the financial statements for the fiscal year ended Feb. 29, 2012. The independent auditors noted that the Company has historically incurred substantial losses from operations, and may not have sufficient working capital or outside financing available to meet its planned operating activities over the next twelve months which conditions raise substantial doubt about the Company's ability to continue as a going concern. AUSTRALIAN-CANADIAN OIL: Posts $69,900 Net Loss in Q1 2012 ---------------------------------------------------------- Australian-Canadian Oil Royalties Ltd. filed its quarterly report on Form 10-Q, reporting a net loss of US$69,878 on US$19,781 of oil and gas revenues for the three months ended March 31, 2012, compared with a net loss of US$40,971 on US$33,100 of oil and gas revenues for the same period last year. The Company's balance sheet at March 31, 2012, showed US$10.85 million in total assets, US$3.62 million in total current liabilities, and stockholders' equity of US$7.23 million. As reported in the TCR on April 16, 2012, KWCO, P.C., in Odessa, Texas, expressed substantial doubt about Australian-Canadian Oil Royalties' ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 31, 2011. The independent auditors noted that the Company has suffered recurring losses from operations and has limited capital resources. A copy of the Form 10-Q is available for free at: http://is.gd/nEqS9d Cisco, Texas-based Australian-Canadian Oil Royalties Ltd. was incorporated in British Columbia, Canada, in April of 1997. The business of ACOR during 2011 was to work on its existing Working Interest projects as well as study the oil and gas exploration acreage available in Australia in basins that demonstrate a high probability of success with the maximum rate of return for dollars invested. BALL GROUND: Has Until Friday to Stop Operations & Vacate Lease --------------------------------------------------------------- Kristal Dixon at Cherokee Tribune reports that Ball Ground Recycling has until July 6, 212, to cease operations and vacate property it leases from Cherokee County. According to the report, Judge Margaret H. Murphy of the U.S. Bankruptcy Court for the Northern District of Georgia signed a consent order, fulfilling a request from the county and the Resource Recovery Development Authority to lift the automatic stay imposed by the company's Chapter 11 bankruptcy filing. The report says the motion also orders the company's owner Jimmy Bobo to turn over keys to the property and any other software and documents relating to operating the business. Mr. Bobo said the stay was lifted through a negotiated agreement between Ball Ground Recycling and the county. The report adds County Attorney Angela Davis added the county will "continue to seek re-payment of the debt through the bankruptcy process." The consent order also terminates the RRDA's lease agreement with Ball Ground Recycling, which has come under scrutiny from some members in the public. The report says County Manager Jerry Cooper said the county is still in the process of finding an operator to take over the site. About Ball Ground Based in Canton, Georgia, Ball Ground Recycling LLC, a wood recycling company, filed for Chapter 11 protection (Bankr. N.D. Ga. Case No. 12-63101) on May 25, 2012. Judge Margaret Murphy presides over the case. The Debtor estimated both assets and debts of between $10 million and $50 million. BERNARD L. MADOFF: Court Snubs Investors' Appeal on Money Recovery ------------------------------------------------------------------ Andrew Seidman and Brent Kendall at The Wall Street Journal report that the U.S. Supreme Court refused on July 2 to consider an appeal from a group of Bernard Madoff investors who sought to challenge trustee Irving Picard's decision to allow claims from victims based on how much they lost in principal deposits, not how much they lost in the profits Mr. Madoff fabricated. The investors, according to WSJ, wanted to recover all the money listed on their last account statements in 2008. Relying on customers' last account statements would have been flawed because they reflected securities transactions that could never have occurred, as well as securities that the customers had not in fact paid for with real dollars, WSJ relates, citing Mr. Picard. 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. BIOFUEL ENERGY: Douglas Anderson Promoted to COO ------------------------------------------------ Douglas M. Anderson, BioFuel Energy Corp.'s Executive Vice President, Operations, has been promoted to the additional role of Chief Operating Officer, effective immediately. No other terms of Mr. Anderson's employment have changed. About Biofuel Energy Denver, Colo.-based BioFuel Energy Corp. (Nasdaq: BIOF) -- http://www.bfenergy.com/-- aims to become a leading ethanol producer in the United States by acquiring, developing, owning and operating ethanol production facilities. It currently has two 115 million gallons per year ethanol plants in the Midwestern corn belt. The Company reported a net loss of $10.36 million in 2011, compared with a net loss of $25.22 million during the prior year. The Company's balance sheet at March 31, 2012, showed $286.61 million in total assets, $197.36 million in total liabilities and a $89.25 million in total equity. Bankruptcy Warning According to the Form 10-K for the year ended Dec. 31 2011, commodity margins have narrowed since the end of 2011 and, should current commodity margins continue for an extended period of time, the Company may not generate sufficient cash flow from operations to both service its debt and operate the Company's plants. The Company is required to make, under the terms of its Senior Debt Facility, quarterly principal payments in a minimum amount of $3,150,000, plus accrued interest. The Company cannot predict when or if crush spreads will fluctuate again or if the current commodity margins will improve or worsen. If crush spreads were to remain at current levels for an extended period of time, the Company may expend all of its sources of liquidity, in which event the Company would not be able to pay principal and interest on its debt. Any inability to pay principal and interest on the Company's debt would lead to an event of default under its Senior Debt Facility, which, in the absence of forbearance, debt service abeyance or other accommodations from the Company's lenders, could require the Company to seek relief through a filing under the U.S. Bankruptcy Code. BLAST ENERGY: Issues 81.8MM Shares to Extinguish $1.6MM Debt ------------------------------------------------------------ Blast Energy Services, Inc., on June 26, 2012, provided Berg McAfee Companies, LLC, and Clyde Berg, an individual, notice of its intent to exercise its rights under the BMC Debt Conversion Agreement. Blast Energy on Jan. 13, 2012, entered into an Agreement and Plan of Reorganization with Blast Acquisition Corp., a newly formed wholly-owned Nevada subsidiary of the Company, and Pacific Energy Development Corp., pursuant to which MergerCo will be merged with and into PEDCO, with PEDCO being the surviving entity and becoming a wholly-owned subsidiary of the Company. In connection with the Merger Agreement, the Company entered into other agreements, including the Debt Conversion Agreement with BMC and Clyde. The Company had previously entered into: (1) a Secured Promissory Note Agreement, dated Feb. 27, 2008, as amended on Jan. 5, 2011, with BMC in the aggregate principal amount of $1,120,000; and (2) a Promissory Note, dated May 19, 2011, with Berg in the aggregate principal amount of $100,000. On June 27, 2012, all amounts of principal and accrued interest under the Notes, which totaled $1,636,253, were extinguished in connection with the issuance of shares of common stock in the Company. The shares were issued at a conversion price of $0.02 per share of common stock as provided for in the Debt Conversion Agreement, and represent 49% of the total outstanding shares of common stock of the Company. As a result of the issuance of 81,812,650 shares of common stock, Eric A. McAfee now beneficially owns 94,954,184 shares of common stock of Company, or 57% of the Company's outstanding common stock. Clyde Berg now beneficially owns 100,501,086 shares of common stock of the Company, or 60% of the Company's outstanding common stock. Collectively, Mr. McAfee and Mr. Berg own 67% of the Company's outstanding common stock. In anticipation of the submission to the Company's stockholders for a vote in connection with the approval of the Merger Agreement, the approval of the amended and restated certificate of formation and the amended and restated certificate of designations, the Board of Directors has called a special meeting of shareholders of the Company. The Special Meeting has been scheduled for July 27, 2012. The record date for the Special Meeting has been set as the close of business on June 27, 2012. About Blast Energy Houston, Texas-based Blast Energy Services, Inc., is seeking to become an independent oil and gas producer with additional revenue potential from its applied fluid jetting technology. The Company plans to grow operations initially through the acquisition of oil producing properties and then eventually, to acquire oil and gas properties where its applied fluid jetting process could be used to increase the field production volumes and value of the properties in which it owns an interest. In the auditors' report accompanying the financial statements for year ended Dec. 31, 2011, GBH CPAs, PC, in Houston, Texas, expressed substantial doubt about Blast Energy Services' ability to continue as a going concern. The independent auditors noted that Blast incurred a loss from continuing operations for 2011, and has an accumulated deficit at Dec. 31, 2011. The Company reported a net loss of $4.14 million for 2011, compared with a net loss of $1.51 million for 2010. The Company's balance sheet at March 31, 2012, showed $1.86 million in total assets, $3.98 million in total liabilities and a $2.11 million total stockholders' deficit. BROADWAY FINANCIAL: Sells Common Shares to Execs. for $150,000 -------------------------------------------------------------- Broadway Financial Corporation entered into individual stock purchase agreements on July 2, 2012, with certain of its directors and with its President and Chief Executive Officer providing for purchases by those persons of the Corporation's common stock at a per share purchase price of $1.30, in each case paid in cash on July 2, 2012. The Company sold an aggregate of 115,386 shares of common stock for an aggregate purchase price of $150,000. About Broadway Financial Los Angeles, Calif.-based Broadway Financial Corporation was incorporated under Delaware law in 1995 for the purpose of acquiring and holding all of the outstanding capital stock of Broadway Federal Savings and Loan Association as part of the Bank's conversion from a federally chartered mutual savings association to a federally chartered stock savings bank. In connection with the conversion, the Bank's name was changed to Broadway Federal Bank, f.s.b. The conversion was completed, and the Bank became a wholly owned subsidiary of the Company, in January 1996. The Company is currently regulated by the Board of Governors of the Federal Reserve System ("FRB"). The Bank is currently regulated by the Office of the Comptroller of the Currency ("OCC") and the Federal Deposit Insurance Corporation ("FDIC"). Crowe Horwath LLP, in Costa Mesa, California, issued a "going concern" qualification on the financial statements for the year ended Dec. 31, 2011. The independent auditors noted that the Company has a tax sharing liability to its consolidated subsidiary that exceeds its available cash. The liability will be settled pursuant to the tax sharing agreement on or before April 2, 2012, at which point the Company will run out of operating cash. "In addition, the Company is in default under the terms of a $5 million line of credit with another financial institution lender. Finally, the Company has sustained recurring operating losses mainly caused by elevated levels of loan losses, and as discussed in Note 15, the Company and its Bank subsidiary, Broadway Federal Bank are both under formal regulatory agreements." The Company's balance sheet at March 31, 2012, showed $413.38 million in total assets, $390.59 million in total liabilities and $22.79 million in total stockholders' equity. BROWNIE'S MARINE: Posts $441,200 Net Loss in Q1 2012 ---------------------------------------------------- Brownie's Marine Group, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $441,201 on $608,126 of revenues for the three months ended March 31, 2012, compared with a net loss of $273,404 on $362,900 of revenues for the comparable period last year. The Company's balance sheet at March 31, 2012, showed $1.94 million in total assets, $2.70 million in total liabilities, and a stockholders' deficit of $757,489. As reported in the TCR on April 2, 2012, L.L. Bradford & Company, LLC, in Las Vegas, Nevada, expressed substantial doubt about Brownie's Marine Group's ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 31, 2011. The independent auditors noted that the Company has a working capital deficiency and recurring losses and will need to secure new financing or additional capital in order to pay its obligations. A copy of the Form 10-Q is available for free at: http://is.gd/9n0xvm Brownie's Marine Group, Inc., does business through its wholly owned subsidiary, Trebor Industries, Inc., d/b/a Brownie's Third Lung, a Florida corporation. The Company designs, tests, manufactures and distributes recreational hookah diving, yacht based scuba air compressor and nitrox generation systems, and scuba and water safety products. BWMG sells its products both on a wholesale and retail basis, and does so from its headquarters and manufacturing facility in Fort Lauderdale, Florida. The Company's common stock is quoted on the OTC BB under the symbol "BWMG". The Company's website is www.browniesmarinegroup.com. CASPIAN SERVICES: Posts $3.8 Million Net Loss in March 31 Quarter ----------------------------------------------------------------- Caspian Services, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $3.76 million on $4.39 million of revenues for the three months ended March 31, 2012, compared with a net loss of $2.14 million on $10.97 million of revenues for the three months ended March 31, 2011. For the six months ended March 31, 2012, the Company reported a net loss of $8.26 million on $12.62 million of revenues, compared with a net loss of $3.65 million on $26.14 million of revenues for the six months ended March 31, 2011. The Company's balance sheet at March 31, 2012, showed $92.96 million in total assets, $82.30 million in total liabilities, and stockholders equity of $10.66 million. "The ability of the Company to continue as a going concern is dependent upon, among other things, the Company's ability to reach agreement with EBRD to restructure the EBRD financing agreements and successfully close the Loan Restructuring Agreement or to repay its debt obligations by obtaining additional financing or selling business segments or assets," the Company said in the filing. "Uncertainty as to the outcome of these factors raises substantial doubt about the Company?s ability to continue as a going concern. A copy of the Form 10-Q is available for free at: http://is.gd/Jy3q78 Hansen, Barnett & Maxwell, P.C., in Salt Lake City, Utah, expressed substantial doubt about Caspian Services' ability to continue as a going concern, following the Company's results for the fiscal year ended Sept. 30, 2011. The independent auditors noted that a Company creditor has indicated that it believes the Company may be in violation of certain covenants of certain substantial financing agreements. "The financing agreements have acceleration right features that, in the event of default allow for the loan and accrued interest to become immediately due and payable. As a result of this uncertainty, the Company has included the note payable and all accrued interest as current liabilities at Sept. 30, 2011. At Sept. 30, 2011, the Company had negative working capital of $50,454,000. Uncertainty as to the outcome of these factors raises substantial doubt about the Company's ability to continue as a going concern." About Caspian Services Salt Lake City, Utah-based Caspian Services, Inc.'s business consists of three major business segments: Vessel Operations -- Vessel operations consist of chartering a fleet of shallow draft offshore support vessels to customers performing oil and gas exploration activities in the Kazakhstan Sector of the North Caspian Sea. Geophysical Services -- Geophysical services consist of providing seismic data acquisition services to oil and gas companies operating both onshore in Kazakhstan and offshore in the Kazakhstan sector of the North Caspian Sea and the adjacent transition zone. Marine Base Services -- Marine Base Services consists of operating a marine base located at the Port of Bautino on the North Caspian Sea. CELL THERAPEUTICS: Estimates $7.2 Million Net Loss in May --------------------------------------------------------- Cell Therapeutics, Inc., provided information pursuant to a request from the Italian securities regulatory authority, CONSOB, pursuant to Article 114, Section 5 of the Unified Financial Act, that the Company issue at the end of each month a press release providing a monthly update of certain information relating to the Company's management and financial situation. The Company estimated a net loss attributable to common shareholders of US$7.23 million on US$0 of net revenue for the month ended May 31, 2012, compared with a net loss attributable to common shareholders of US$5.15 million on US$0 of net revenue during the prior month. Estimated research and development expenses were $2.3 million for the month of April 2012 and $2.5 million for the month of May 2012. NASDAQ Noncompliance Notice On June 29, 2012, the Company received a notice from The NASDAQ Stock Market indicating that for 30 consecutive business days the closing bid price of the Company's common stock was below the minimum $1.00 per share requirement for continued listing of the Company's common stock on The NASDAQ Capital Market under NASDAQ Listing Rule 5550(a)(2). This notification has no immediate effect on the listing of or the ability to trade the Company's common stock on The NASDAQ Capital Market. NASDAQ Listing Rule 5810(c)(3)(A) provides the Company with a grace period of 180 calendar days, or until Dec. 26, 2012, to regain compliance. The Company will achieve compliance if the closing bid price of the Company's common stock is $1.00 per share or more for a minimum of 10 consecutive business days before Dec. 26, 2012. About Cell Therapeutics Headquartered in Seattle, Washington, Cell Therapeutics, Inc. (NASDAQ and MTA: CTIC) -- http://www.CellTherapeutics.com/-- is a biopharmaceutical company committed to developing an integrated portfolio of oncology products aimed at making cancer more treatable. Cell Therapeutics reported a net loss attributable to CTI of $62.36 million in 2011, compared with a net loss attributable to CTI of $82.64 million in 2010. The Company's balance sheet at March 31, 2012, showed $44.15 million in total assets, $18.50 million in total liabilities $13.46 million in common stock purchase warrants, and $12.18 million in total shareholders' equity. Going Concern Doubt Raised The report of Marcum LLP, in San Francisco, Calif., dated March 8, 2012, expressed an unqualified opinion, with an explanatory paragraph as to the uncertainty regarding the Company's ability to continue as a going concern. The Company's available cash and cash equivalents are $47.1 million as of Dec. 31, 2011. The Company's total current liabilities were $17.8 million as of Dec. 31, 2011. The Company does not expect that it will have sufficient cash to fund its planned operations beyond the second quarter of 2012, which raises substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning The Form 10-K for the year ended Dec. 31, 2011, noted that if the Company receives approval of Pixuvri by the EMA or the FDA, it would anticipate significant additional commercial expenses associated with Pixuvri operations. Accordingly, the Company will need to raise additional funds and are currently exploring alternative sources of equity or debt financing. The Company may seek to raise that capital through public or private equity financings, partnerships, joint ventures, disposition of assets, debt financings or restructurings, bank borrowings or other sources of financing. However, the Company has a limited number of authorized shares of common stock available for issuance and additional funding may not be available on favorable terms or at all. If additional funds are raised by issuing equity securities, substantial dilution to existing shareholders may result. If the Company fails to obtain additional capital when needed, it may be required to delay, scale back, or eliminate some or all of its research and development programs and may be forced to cease operations, liquidate its assets and possibly seek bankruptcy protection. CHINA CEETOP.COM: Posts $238,300 Net Loss in Q1 2012 ---------------------------------------------------- China Ceetop.com, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $238,299 on $1.31 million of sales for the three months ended March 31, 2012, compared with a net loss of $393,458 on $3.45 million of sales for the same period last year. The Company's balance sheet at March 31, 2012, showed $1.23 million in total assets, $457,858 in total current liabilities, and stockholders' equity of $776,737. As reported in the TCR on April 23, 2012, Clement C. W. Chan & Co., in Hong Kong, expressed substantial doubt about China Ceetop.com's ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 31, 2011. The independent auditors noted that the Company incurred a net loss of $1.65 million for the year ended Dec. 31, 2011, and has an accumulated deficit of $4.32 million at Dec. 31, 2011. A copy of the Form 10-Q is available for free at: http://is.gd/ty2Z7g Shenzhen, China-based China Ceetop.com, Inc., an Oregon-registered corporation, is a leading Business-to-Consumer ("B2C") e-commerce company. The Company owns and operates the online platform http://www.ceetop.com/ The Company mainly focuses on selling Computers/ Communications/Consumer roducts online and providing a trading information platform for both buyers and sellers as software as a service. The Company carries a wide range of products in assorted categories, including mainstream digital products, home appliances, kitchen appliances, personal care, and lifestyle products, etc. under well-known international and Chinese brands. CITY NATIONAL: P. Pinkett & H. Williams Elected to Board -------------------------------------------------------- City National Bancshares Corporaion held its annual meeting of shareholders at which the shareholders voted for the (i) election of Preston D. Pinkett, III and H. O'Neil Williams to serve until the Company's 2015 Annual Meeting of Shareholders, (ii) approval of the Company's executive compensation in a non-binding advisory vote; and (iii) ratification of the appointment of KPMG LLP as the Company's independent registered public accounting firm for the 2012 fiscal year ending Dec. 31, 2012. About City National Bancshares Newark, New Jersey-based City National Bancshares Corporation is a New Jersey corporation incorporated on Jan. 10, 1983. City National Bank, a wholly-owned subsidiary of CNBC, is a national banking association chartered in 1973 under the laws of the United States of America and has one subsidiary, City National Investments, Inc., an investment company which holds, maintains and manages investment assets for CNB. CNB provides a wide range of retail and commercial banking services through its retail branch network, although the primary focus is on establishing commercial and municipal relationships. The Company reported a net loss of $3.67 million in 2011, a net loss of $7.45 million in 2010, and a net loss of $7.82 million in 2009. The Company's balance sheet at Dec. 31, 2011, showed $358.44 million in total assets, $338.67 million in total liabilities and $19.77 million in total stockholders' equity. KPMG LLP, in Short Hills, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the period ended Dec. 31, 2011. The independent auditors noted that the Company has suffered recurring losses from operations and has entered into a consent order with the Office of the Comptroller of the Currency that raise substantial doubt about its ability to continue as a going concern. CLARE AT WATER: OK'd to Obtain $12MM DIP Loan from Redwood Capital ------------------------------------------------------------------ The Hon. Timothy A. Barnes of the U.S. Bankruptcy Court for the Northern District of New York, in an amended final order, authorized The Clare at Water Tower to: -- obtain postpetition financing in the form of a multiple draw term loan made available to the Debtor in a principal amount of up to $12,000,000 from Redwood Capital Investments, LLC or its assignee; -- use cash collateral; and -- grant the lender superpriority claims and first priority senior to any prepetition or postpetition liens, subject to carve out on certain expenses. The Court also ordered that in accordance with the Debtor's Fifth Amended Plan of Reorganization, the lender will be paid in cash at closing from the proceeds of the asset sale. As reported in the Troubled Company Reporter on Jan. 13, 2012, on Dec. 21, 2011, the Court entered a final order authorizing the Debtor to obtain up to $12,000,000 in postpetition financing on a senior secured superpriority basis from Redwood Capital, or its designee. The DIP Facility maturity terminates by May 11, 2012, and requires the Debtor to pursue a sale of its assets. About The Clare at Water Tower The Clare at Water Tower is an upscale 334-unit high-rise continuing-care retirement community in Chicago, Illinois. The project is only 42% occupied because the target population either hasn't been able to sell homes or lacks sufficient cash to make required deposits as the result declining investments following the recession. The facility is a 53-story building on land rented from Loyola University of Chicago. The facility is managed and developed by a unit of the Franciscan Sisters of Chicago, who invested more than $14 million. The project opened in December 2008. Residents must make partially refundable deposits ranging from $263,000 to $1.2 million. Monthly fees are an additional $2,700 to $5,500. The Clare filed for Chapter 11 protection (Bankr. N.D. Ill. Case No. 11-46151) on Nov. 14, 2011, after defaulting on $229 million in tax-exempt bond financing used to build the project. Matthew M. Murphy, Esq., at DLA Piper LLP, serves as the Debtor's counsel. Houlihan Lokey Capital, Inc., as its investment banker and financial advisor. Deloitte Financial Advisory Services LLP serves as restructuring advisor. Epiq Bankruptcy Solutions serves as claims and noticing agent. The Debtor, in its amended schedules, disclosed $56.8 million in assets and $321.7 million in liabilities. The petition was signed by Judy Amiano, president. The Official Committee of Unsecured Creditors proposed to retain SNR Denton US LLP as counsel. The Committee also tapped FTI Consulting, Inc., as its financial advisor. CLARE OAKS: Pays $15,000 to Extend Auction Deadline to Aug. 21 -------------------------------------------------------------- Clare Oaks asks the U.S. Bankruptcy Court for the Northern District of Illinois to approve a fourth amendment to its senior secured superpriority debtor-in-possession loan agreement. The Debtor has agreed to pay a fee of $15,000 to the DIP Lender for the amendment. The bank and the Master Trustee have consented to the proposed amendments to the budget and the final order. Pursuant to the amendment, the Debtor agrees to market and sell substantially all of their assets, in consultation with their advisors, and to meet these milestones, among other things: (i) if applicable, by Aug. 21, 2012, the Debtor will have conducted an auction for the purchase of all or substantially all of the Debtor's assets; (ii) not later than Aug. 23, 2012, the Court will have held a hearing to approve the sale of Debtor's assets to the stalking horse bidder or other bidder making a higher and better offer for the assets; (iii) the Debtor will close the sale of all or substantially all of the Debtor's assets by Sept. 30, 2012. On June 13, the Court approved the Third Amendment to senior secured superpriority debtor-in-possession loan agreement. That amendment extended the loan maturity to Aug. 31, and extended the deadline to conduct an auction by Aug. 14. A full-text copy of the amendment is available for free at: http://bankrupt.com/misc/ClareOaks_DIPLoan_amendment.pdf About Clare Oaks Clare Oaks, an Illinois not-for-profit corporation organized under section 501(c)(3) of the Internal Revenue Code, operates a namesake continuing care retirement community in Bartlett, Illinois. Its members are the Sisters of St. Joseph of the Third Order of St. Francis, a Roman Catholic religious institute, who are elected and serving as the members of the Central Board of the Congregation. Clare Oaks is managed by CRSA/LCS Management LLC, an affiliate of Life Care Services LLC. Clare Oaks filed for Chapter 11 bankruptcy (Bankr. N.D. Ill. Case No. 11-48903) on Dec. 5, 2011. Judge Pamela S. Hollis presides over the case. David R. Doyle, Esq., George R. Mesires, Esq., and Patrick F. Ross, Esq., at Ungaretti & Harris LLP, in Chicago, serve as the Debtor's counsel. North Shores Consulting serves as the Debtor's operations consultant. Continuum Development Services and Alvarez & Marsal Healthcare Industry Group LLC serve as advisors. Alvarez & Marsal's Paul Rundell serves as the Chief Restructuring Officer. Sheila King Marketing + Public Relations serves as communications advisors. CliftonLarsonAllen is the Debtor's accountants. B.C. Ziegler and Company is the Debtor's proposed investment banker and financial advisor. In its petition, Clare Oaks estimated $100 million to $500 million in assets and debts. The petition was signed by Michael D. Hovde, Jr., president. Attorneys at Neal Wolf & Associates, LLC, represent the Official Committee of Unsecured Creditors as counsel. Wells Fargo, as master trustee and bond trustee, is represented by Daniel S. Bleck, Esq., and Charles W. Azano, Esq., at Mintz Levin Cohen Ferris Glovsky and Popeo PC; and Robert M. Fishman, Esq., and Allen J. Guon, Esq., at Shaw Gussis Fishman Glantz Wolfson & Towbin LLC. Sovereign Bank, the letters of credit issuer, is represented by John R. Weiss, Esq., at Duane Morris LLP. Senior Care Development LLC, the DIP Lender, is represented by William S. Fish, Jr., Esq., and Sarah M. Lombard, Esq., at Hinckley Allen & Snyder LLP. COMMERCETEL CORP: Posts $1.69 Million Net Loss in Q1 2012 --------------------------------------------------------- CommerceTel Corporation filed its quarterly report on Form 10-Q, reporting a net loss of $1.69 million on $1.01 million of revenues for the three months ended March 31, 2012, compared with a net loss of $1.31 million on $140,638 of revenues for the comparable period in 2011. The Company's balance sheet at March 31, 2012, showed $4.57 million in total assets, $9.19 million in total liabilities, and a stockholders' deficit of $4.62 million. M&K CPAs, PLLC, in Houston, Texas, expressed substantial doubt about CommerceTel Corporation's ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 31, 2011. The independent auditors noted that the Company has incurred recurring operating losses and negative cash flows from operations and is dependent on additional financing to fund operations. A copy of the Form 10-Q is available for free at: http://is.gd/6i2y3h CommerceTel Corporation, headquartered in Chandler, Ariz., is a provider of technology that enables major brands and enterprises to engage consumers via their mobile phone. COMMUNITY SHORES: Bruce Essex Owns 8.5% of Total Shares ------------------------------------------------------- In a Schedule 13G filing with the U.S. Securities and Exchange Commission, Bruce J. Essex, Jr., disclosed that, as of June 25, 2012, he beneficially owns 125,250 shares of common stock of Community Shores Bank Corporation which represents 8.5% of the shares outstanding. Mr. Essex is the President and Chief Executive Officer of Port City. A copy of the filing is available at: http://is.gd/OacfI3 About Community Shores Muskegon, Mich.-based Community Shores Bank Corporation, organized in 1998, is a Michigan corporation and a bank holding company. The Company owns all of the common stock of Community Shores Bank. The Bank was organized and commenced operations in January 1999 as a Michigan chartered bank with depository accounts insured by the FDIC to the extent permitted by law. The Bank provides a full range of commercial and consumer banking services primarily in the communities of Muskegon County and Northern Ottawa County. After auditing the 2011 results, Crowe Horwath LLP, in Grand Rapids, Michigan, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant recurring operating losses, is in default of its notes payable collateralized by the stock of its wholly-owned bank subsidiary, and the subsidiary bank is undercapitalized and is not in compliance with revised minimum regulatory capital requirements under a formal regulatory agreement which has imposed limitations on certain operations. The Company reported a net loss of $2.46 million in 2011, compared with a net loss of $8.88 million in 2010. The Company's balance sheet at March 31, 2012, showed $219.42 million in total assets, $220.94 million in total liabilities, and a $1.52 million total shareholders' deficit. CONTRACT RESEARCH: Wants Until Nov. 21 to Propose Chapter 11 Plan ----------------------------------------------------------------- Contract Research Solutions, Inc., et al., ask the U.S. Bankruptcy Court for the District of Delaware to extend their exclusive periods to file and solicit acceptances for the proposed chapter 11 Plan until Nov. 21, 2012, and Jan. 20, 2013, respectively. According to the Debtors, cause exists to extend the exclusive periods, because, among other things: 1. the Chapter 11 cases are large and complex; 2. the Debtors need additional time to negotiate and prepare adequate information; and 3. the cases have been pending for less than three months. The Debtors relate that allowing other parties to propose competing plans could potentially undo their progress relating to the Global Settlement with the prepetition secured lenders and the Committee in support of the sale and providing for the orderly wind down. As reported in the Troubled Company Reporter on June 22, 2012, Cetero Research disclosed the completion of a major milestone in its reorganization efforts. Following the company filing for reorganization under Chapter 11 and the U.S. District Bankruptcy Court's approval of the sale of Cetero to its investor group, led by Freeport Financial, the sale of the company was finalized on June 20. The Debtors set a hearing on Aug. 8, at 11 a.m. (ET). Objections, if any, are due July 11, at 4 p.m. About Cetero Contract Research Solutions Inc., doing business as Cetero, a provider of early-phase clinical research services for pharmaceutical and biotechnology firms, filed a Chapter 11 petition (Bankr. D. Del. Case No. 12-11004) on March 26, 2012. Cetero's 19 affiliates also sought bankruptcy protection (Bankr. D. Del. Case Nos. 12-11005 to 12-11023). Cetero plans to sell the business, including their rights to pursue avoidance actions, to first-lien secured lenders in exchange for $50 million in debt, absent higher and better offers. Cetero has filed a motion seeking approval of procedures that will govern the bidding and auction. The first-lien lenders have formed entities that will acquire the business -- CSRI Holdings LLC, as U.S. Purchaser, and 0935867 B.C. Ltd and 0935870 B.C. Ltd, as Canadian Purchasers. Together, they will serve as stalking horse bidders and have offered to exchange $50 million in secured debt and assume $30 million in liabilities to buy the assets. First lien lenders are also providing a $15 million loan to finance the Chapter 11 effort. Assets are $205 million, with debt total $248 million. There is $185 million in debt for borrowed money, including $116 million on a first-lien term loan and revolving credit. The second-lien loan is $25 million. Second-lien lenders have agreed to the sale. Freeport Financial LLC serves as the sole lead arranger and bookrunner, and as U.S. administrative agent and collateral agent under the first lien facility. Bank of Montreal serves as the Canadian agent. Freeport is also the agent under the second lien facility. Judge Kevin Gross oversees the case. Lawyers at Young Conaway Stargatt & Taylor, LLP, and Paul Hastings LLP serve as the Debtors' counsel. Stikeman Elliott LLP serves as Canadian counsel. Carl Marks Advisory Group LLC serves as restructuring advisor. Epiq Bankruptcy Solutions serves as claims and notice agent. The petitions were signed by Michael T. Murren, CFO. The first lien lenders and the stalking horse buyers are represented by Peter Knight, Esq., at Latham & Watkings, LLP; and Wael Rostom, Esq., at McMillan LLP. Roberta A. Deangelis, U.S. Trustee for Region 3 appointed three persons to the Official Committee of Unsecured Creditors in the Chapter 11 cases of Contract Research. CROATAN SURF: Plan Outline Hearing Continued Until Aug. 23 ---------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of North Carolina has continued until Aug. 23, 2012, at 10 a.m., the hearing to consider adequacy of the Disclosure Statement explaining Croatan Surf Club, LLC's Second Amended Chapter 11 Plan. According to the Disclosure Statement, unsecured creditors holding claims will be paid in full as set forth in the Plan. A copy of the Second Amended Disclosure Statement is available for free at http://bankrupt.com/misc/CroatanSurf_AmendedDS.pdf Croatan Surf Club, LLC owns a 36-unit condominium complex in Kill Devil Hills, North Carolina. It filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.C. Case No. 11-00194) on Jan. 10, 2011. Walter L. Hinson, Esq., at Hinson & Rhyne, P.A., in Wilson, N.C., serve as counsel to the Debtor. Kevin J. Silverang, Esq., and Philip S. Rosenzweig, Esq., at Silverang & Donohoe, LLC, in St. Davids, Pa., serve as co-counsel to the Debtor. No creditors committee has been formed in the case. In its schedules, the Debtor disclosed $26,151,718 in assets and $19,350,000 in liabilities. CYBERDEFENDER: Changes Name to CYDE Liquidating Co. --------------------------------------------------- The Hon. Brendan L. Shannon of the Bankruptcy Court for the District of Delaware has approved motion of CyberDefender Corporation to change its name to CYDE Liquidating Co. As reported in the Troubled Company Reporter on May 31, 2012, CyberDefender obtained authority to sell the business to GR Match LLC for $12 million in debt and $250,000 cash. There were no competing bids, so an auction was canceled. The buyer will also cure the Debtor's obligation to Oracle America Inc., successor-in- interest to RightNow Technologies Inc. About CyberDefender Los Angeles, Calif.-based CyberDefender Corporation provides remote LiveTech services and security and computer optimization software to the consumer and small business market. The Company's mission is to bring to market advanced solutions to protect computer users against Internet viruses, spyware, identity theft and related security threats. In regulatory filings, the Company disclosed $7.96 million in total assets, $42.54 million in total liabilities, and a $34.58 million total stockholders' deficit, as of Sept. 30, 2011. CyberDefender filed for Chapter 11 protection (Bankr. D. Del. Case No. 12-10633) on Feb. 23, 2012. The Company entered into an asset purchase agreement with GR Match LLC, an affiliate of Guthy- Renker, to sell substantially all of its assets as a going concern to GR Match, the senior secured lender. The buyer committed to provide up to $4.6 million in debtor-in-possession financing. XRoads Solutions Group, LLC serves as financial advisor to the Company and Pachulski Stang Ziehl & Jones LLP (James E. O'Neill) serves as bankruptcy counsel. An official committee of unsecured creditors has been appointed in the case. DELTA PETROLEUM: Lays Off EVP Stanley Freedman, Other Employees --------------------------------------------------------------- In connection with its ongoing Chapter 11 proceedings, Delta Petroleum Corporation implemented a reduction in force of certain of its employees and officers, which included Stanley F. Freedman, the Company's then acting Executive Vice President, General Counsel and Secretary. 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. Laramie Energy II LLC has been approved by the Court to serve as the sponsor for Delta's reorganization plan. Roberta A. Deangelis, U.S. Trustee for Region 3, appointed three creditors to serve on the Official Committee of Unsecured Creditors in the Chapter 11 cases of Delta Petroleum. DEWEY & LEBOEUF: US Trustee Tries to Block Hiring of Law Firms -------------------------------------------------------------- Erin Geiger Smith at Reuters reports that Hope Davis, the U.S. Trustee in the Dewey & LeBoeuf bankruptcy case, objected on Friday to the retention of law firms Proskauer Rose LLP and Keightley & Ashner LLP to advise on claims brought by the Debtor's largest unsecured creditor, the U.S. Pension Benefit Guaranty Corporation. The Trustee argued that the case does not "warrant the need for two law firms to perform what appear to be the same services," Reuters relates. According to Reuters, the Trustee also questioned whether Proskauer has conflicts in representing the Debtor. Reuters states that the Trustee also objected to the hiring of public relations consultants Sitrick and Company. According to the report, the Trustee said that the Debtor is in the process of winding down and that it had "failed to demonstrate the necessity of hiring a public relations firm in a liquidation case." 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. The Former Partners hired Tracy L. Klestadt, Esq., and Sean C. Southard, Esq., at Klestadt & Winters, LLP, as counsel. Dewey & LeBoeuf has won Court authority to use lenders' cash collateral through July 31, 2012. DEWEY & LEBOEUF: Former Partners' Panel Taps KBT&F as Counsel ------------------------------------------------------------- The Official Committee of Former Partners in the Chapter 11 cases of Dewey & Leboeuf LLP, asks the U.S. Bankruptcy Court for the Southern District of New York for permission to retain Kasowitz, Benson, Torres & Friedman LLP as its counsel, effective nunc pro tunc to June 4, 2012. On May 31, 2012, the Office of the U.S. Trustee appointed (i) the Former Partners' Committee and (ii) the Official Committee of Unsecured Creditors. The members of the Former Partners' Committee are David P. Bicks, Cameron F. MacRae, John S. Kinzey and John P. Campo. KBT&F will, among other things: a. provide the Former Partners' Committee with legal advice with respect to its rights, duties and powers as an official committee appointed under section 1102 of the Bankruptcy Code; b. assist the Former Partners' Committee in investigating the acts, conduct, assets, liabilities and financial condition of the Debtor; and c. take all necessary actions to protect and to preserve the interests of the Former Partners' Committee and the interests of those represented by the committee during the administration of the case, including, as applicable and necessary, prosecuting and defending actions on behalf of the estate, to the extent standing is sought by the Former Partners' Committee and granted by the Court. KBT&F's hourly rates charged to bankruptcy and nonbankruptcy clients are: Partners $540 - $1,155 Special Counsel $535 - $840 Associates $290 - $675 Staff Attorneys $235 - $445 Paralegals $150 - $275 To the best of the Former Partners' Committee's knowledge, KBT&F does not represent any entity having an adverse interest in connection with the Chapter 11 case. The Committee set a hearing on July 9, at 3 p.m. (Eastern Time) for the application. 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. The Former Partners hired Tracy L. Klestadt, Esq., and Sean C. Southard, Esq., at Klestadt & Winters, LLP, as counsel. Dewey & LeBoeuf has won Court authority to use lenders' cash collateral through July 31, 2012. DYNEGY HOLDINGS: Disclosures Okayed; Confirmation Hearing Sept. 5 ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York, Poughkeepsie Division, has approved the disclosure statement for Dynegy Holdings LLC's (DH) modified third amended plan of reorganization proposed by DH and Dynegy Inc., as well as the procedures for soliciting formal creditor votes on the amended plan of reorganization. Approval of the disclosure statement allows DH to begin soliciting formal creditor votes on the amended plan of reorganization. The deadline for voting on and for objecting to the modified third amended plan of reorganization is Aug. 24, 2012. The plan is subject to confirmation by the U.S. Bankruptcy Court and the confirmation hearing is scheduled for Sept. 5, 2012. "This approval is a significant step forward for the Company and firmly places us on track for a fall emergence. We are looking forward to completing the restructuring work and dedicating our focus exclusively to running the business, executing on our strategy and building value for all our stakeholders," said Robert C. Flexon, President and Chief Executive Officer of both Dynegy and DH. About Dynegy Inc. Through its subsidiaries, Houston, Texas-based Dynegy Inc. (NYSE: DYN) -- http://www.dynegy.com/-- produces and sells electric energy, capacity and ancillary services in key U.S. markets. The power generation portfolio consists of approximately 12,200 megawatts of baseload, intermediate and peaking power plants fueled by a mix of natural gas, coal and fuel oil. In August, Dynegy implemented an internal restructuring that created two units, one owning eight primarily natural gas-fired power generation facilities and another owning six coal-fired plants. Dynegy missed a $43.8 million interest payment Nov. 1, 2011, and said it was discussing options for managing its debt load with certain bondholders. Dynegy Holdings LLC and four other affiliates of Dynegy Inc. sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-38111) Nov. 7 to implement an agreement with a group of investors holding more than $1.4 billion of senior notes issued by Dynegy's direct wholly-owned subsidiary, Dynegy Holdings, regarding a framework for the consensual restructuring of more than $4.0 billion of obligations owed by DH. If this restructuring support agreement is successfully implemented, it will significantly reduce the amount of debt on the Company's consolidated balance sheet. Dynegy Holdings disclosed assets of $13.77 billion and debt of $6.18 billion, while Roseton LLC and Dynegy Danskammer LLC each estimated $100 million to $500 million in assets and debt. Dynegy Holdings and its affiliated debtor-entities are represented in the Chapter 11 proceedings by Sidley Austin LLP as their reorganization counsel. Dynegy and its other subsidiaries are represented by White & Case LLP, who is also special counsel to the Debtor Entities with respect to the Roseton and Danskammer lease rejection issues. Dynegy was advised by Lazard Freres & Co. LLC and the Debtor Entities' financial advisor is FTI Consulting. The Official Committee of Unsecured Creditors has tapped Akin Gump Strauss Hauer & Feld LLP as counsel nunc pro tunc to November 16, 2011. EAST COAST: Wins Confirmation of Reorganization Plan ---------------------------------------------------- The Hon. Randy D. Doub of the U.S. Bankruptcy Court for the Eastern District of North Carolina confirmed East Coast Development II, LLC's Plan of Reorganization, as twice amended. On April 20, 2012 the Debtor filed an amendment and restatement of Exhibits A, B, and C to the Disclosure Statement. A full-text copy of the amendment is available for free at: http://bankrupt.com/misc/EAST_COAST_ds_amended.pdf As reported in the Troubled Company Reporter on Aug. 18, 2011, Administrative costs and expenses in Class 1 will be paid in cash and in full within 10 days from the Effective Date of the Plan. Ad Valorem Taxes in Class 2 will be paid in full in quarterly payments over a period of five years from the Petition Date. The Debtor is aware of no claims in Class 3. Unsecured priority tax claims and secured tax claims, if any, will be paid in full in quarterly installments over a period not exceeding five (5) years from the Petition Date. Secured Claimants in Classes 4, 5, 6, 7 and 8 will be paid over time. Please refer to the Plan for the method of payment for each creditor belonging to Classes 4 through 8. The approximate total of general unsecured claims and known deficiency claims in Class 9 is $1,517,698. Of this amount, $359,932 is owed to James A. McFarland, Jr., $155,000 is disputed (Cindy York, Esq.), and $208,825.13 is contingent (Ruth Mazurek), leaving $793,940 in undisputed, non-insider unsecured claims. The Debtor will pay allowed general unsecured claims in full in quarterly installments of $39,697, commencing the earlier of January 15, April 15, July 15, or Oct. 15 following 60 days after the Effective Date and will continue quarterly thereafter for five (5) years. All payments to this class will be distributed pro rata. James A. McFarland, Jr., the sole member of the Debtor, will retain his ownership interest upon confirmation of the Debtor's Plan. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/eastcoastdevt.plan.pdf Plan Confirmation Objections First Bank, as successor-in-interest to Cooperative Bank, opposed confirmation of the Plan. It complains, among other things, of the deadline to complete foreclosure within 120 days after the Effective Date and to file a deficiency claim within 180 days after the Effective Date. The U.S. Bankruptcy Administrator for the Eastern District of North Carolina said that the Disclosure Statement is deficient. It says the document fails to explain why the unsecured class dividend has been amended from a 100% distribution to a $25,000 distribution. Wells Fargo Bank, N.A., successor by merger to Wachovia Bank, National Association, withdrew a request for relief from the automatic stay. About East Coast Development II Wilmington, North Carolina-based East Coast Development II, LLC, dba 100 Block of Market Street, LLC, is in the business of renting real property located in Onslow County, New Hanover County, Guilford County, Wake County, Brunswick County, North Carolina, and Greenville County, Charleston County, and Richland County, South Carolina. East Coast filed for Chapter 11 bankruptcy protection (Bankr. E.D. N.C. Case No. 11-02792) on April 8, 2011. Amy M. Currin, Esq., and Trawick H. Stubbs, Jr., Esq., at Stubbs & Perdue, P.A., serve as bankruptcy counsel. Laurie R. Brown, CPA, serves as accountant. Keith Saieed of Blue Sky Services Real Estate serves as broker for the sale of the Debtor's properties. The Debtor disclosed $24,792,275 in assets and $12,172,815 in liabilities as of the Chapter 11 filing. The U.S. Trustee has not yet appointed a creditors committee in the Debtor's case. The U.S. Trustee reserves the right to appoint such a committee should interest developed among the creditors. EASTMAN KODAK: Wins Approval of Deloitte as Tax Advisor ------------------------------------------------------- Eastman Kodak Co. and its affiliated debtors obtained approval of an application to employ Deloitte Tax LLP as their tax adviser. As tax adviser, the firm will be tasked to review existing global organizational and tax entity structure. Deloitte Tax will also analyze Eastman Kodak's entity rationalization pertaining to local country tax laws, meet with management regarding the rationalization, among other services. Eastman Kodak will pay Deloitte on an hourly basis and reimburse the firm for its expenses. The firm's hourly rates are: Personnel Hourly Rates --------- ------------ Partner/Principal/Director $651-$875 Senior Manager $564-$693 Manager $494-$609 Senior $375-$483 Staff $210-$280 In a declaration, Robert Bentley, at Deloitte Tax, disclosed that the firm does not hold interest adverse to Eastman Kodak or its affiliated debtors. About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. were not included in the filing and are expected to continue to operate as usual. Kodak, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. Kodak sought bankruptcy protection amid near-term liquidity issues brought about by steeper-than-expected declines in Kodak's historically profitable traditional businesses, and cash flow from the licensing and sale of intellectual property being delayed due to litigation tactics employed by a small number of infringing technology companies with strong balance sheets and an awareness of Kodak's liquidity challenges. In recent years, Kodak has been working to transform itself from a business primarily based on film and consumer photography to a smaller business with a digital growth strategy focused on the commercialization of proprietary digital imaging and printing technologies. Kodak has 8,900 patent and trademark registrations and applications in the United States, as well as 13,100 foreign patents and trademark registrations or pending registration in roughly 160 countries. Kodak disclosed $5.10 billion in assets and $6.75 billion in liabilities as of Sept. 30, 2011. The net book value of all assets located outside the United States as of Dec. 31, 2011 is $13.5 million. Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtors. FTI Consulting, Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is the investment banker. Kurtzman Carson Consultants LLC is the claims agent. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel. Michael S. Stamer, Esq., David H. Botter, Esq., and Abid Qureshi, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the Unofficial Second Lien Noteholders Committee. Robert J. Stark, Esq., Andrew Dash, Esq., and Neal A. D'Amato, Esq., at Brown Rudnick LLP, represent Greywolf Capital Partners II; Greywolf Capital Overseas Master Fund; Richard Katz, Kenneth S. Grossman; and Paul Martin. EASTMAN KODAK: Wins Approval to Expand PwC Work ----------------------------------------------- Eastman Kodak Co. obtained approval of a supplemental application to expand the scope of PricewaterhouseCoopers LLP's services. If approved, PwC would provide audit services with respect to the company's consolidated financial statements as of December 31, 2012. The firm would also review Eastman Kodak's unaudited consolidated quarterly financial information for each of the first three quarters in the year ending December 31, 2012, before its quarterly report is filed. The hourly rates that will be charged by PwC professionals for the additional services are: Personnel Hourly Rates --------- ------------ National Office $838 Assurance/Tax/Risk Assurance Partner $690 Director $479 Senior Manager $413 Manager $287 Senior Associate $221 Associate $144 PwC will also be reimbursed for any expenses incurred in connection with those services. About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. were not included in the filing and are expected to continue to operate as usual. Kodak, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. Kodak sought bankruptcy protection amid near-term liquidity issues brought about by steeper-than-expected declines in Kodak's historically profitable traditional businesses, and cash flow from the licensing and sale of intellectual property being delayed due to litigation tactics employed by a small number of infringing technology companies with strong balance sheets and an awareness of Kodak's liquidity challenges. In recent years, Kodak has been working to transform itself from a business primarily based on film and consumer photography to a smaller business with a digital growth strategy focused on the commercialization of proprietary digital imaging and printing technologies. Kodak has 8,900 patent and trademark registrations and applications in the United States, as well as 13,100 foreign patents and trademark registrations or pending registration in roughly 160 countries. Kodak disclosed $5.10 billion in assets and $6.75 billion in liabilities as of Sept. 30, 2011. The net book value of all assets located outside the United States as of Dec. 31, 2011 is $13.5 million. Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtors. FTI Consulting, Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is the investment banker. Kurtzman Carson Consultants LLC is the claims agent. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel. Michael S. Stamer, Esq., David H. Botter, Esq., and Abid Qureshi, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the Unofficial Second Lien Noteholders Committee. Robert J. Stark, Esq., Andrew Dash, Esq., and Neal A. D'Amato, Esq., at Brown Rudnick LLP, represent Greywolf Capital Partners II; Greywolf Capital Overseas Master Fund; Richard Katz, Kenneth S. Grossman; and Paul Martin. EASTMAN KODAK: Files Rule 2015.3 Report as of March 31 ------------------------------------------------------ Eastman Kodak Co. and its affiliated debtors filed a report as of March 31, 2012 on the value, operations and profitability of those entities in which the estate holds a substantial or controlling interest. The report contains a valuation estimate for non-debtor entities as of a date not more than two years prior to June 21, 2012, and a description of the valuation method used. The report also contains a balance sheet and other financial statements including a statement of changes in shareholders' or partners' equity for the period covered for each non-debtor entity, and a list of all active entities of the company. Eastman Kodak filed the report pursuant to Bankruptcy Rule 2015.3. A copy of the report is available without charge at http://bankrupt.com/misc/Kodak_ReportBR033112.pdf About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. were not included in the filing and are expected to continue to operate as usual. Kodak, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. Kodak sought bankruptcy protection amid near-term liquidity issues brought about by steeper-than-expected declines in Kodak's historically profitable traditional businesses, and cash flow from the licensing and sale of intellectual property being delayed due to litigation tactics employed by a small number of infringing technology companies with strong balance sheets and an awareness of Kodak's liquidity challenges. In recent years, Kodak has been working to transform itself from a business primarily based on film and consumer photography to a smaller business with a digital growth strategy focused on the commercialization of proprietary digital imaging and printing technologies. Kodak has 8,900 patent and trademark registrations and applications in the United States, as well as 13,100 foreign patents and trademark registrations or pending registration in roughly 160 countries. Kodak disclosed $5.10 billion in assets and $6.75 billion in liabilities as of Sept. 30, 2011. The net book value of all assets located outside the United States as of Dec. 31, 2011 is $13.5 million. Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtors. FTI Consulting, Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is the investment banker. Kurtzman Carson Consultants LLC is the claims agent. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel. Michael S. Stamer, Esq., David H. Botter, Esq., and Abid Qureshi, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the Unofficial Second Lien Noteholders Committee. Robert J. Stark, Esq., Andrew Dash, Esq., and Neal A. D'Amato, Esq., at Brown Rudnick LLP, represent Greywolf Capital Partners II; Greywolf Capital Overseas Master Fund; Richard Katz, Kenneth S. Grossman; and Paul Martin. ENERGY CONVERSION: Auction of Uni-Solar Set July 12-13 ------------------------------------------------------ Solar-related finished goods of Uni-Solar, a wholly owned subsidiary of Energy Conversion Devices, Inc., a developer of materials science and renewable energy technologies, will be sold by global online auction on July 12-13 pending authorization by the United States Bankruptcy Court, Case #12-43167. The auction will be conducted in partnership by Hilco Industrial, Heritage Global Partners, Maynard's and Van Aker Associates. The sales will be made in various piecemeal configurations. The live global online auction begins July 12 at 7:00 a.m. EDT. Lots will start to close at 10:00 a.m. EDT on July 13. Bidders will have the opportunity to purchase remaining Uni-Solar finished goods inventory, including approximately: -- 7 MW of ePVL enhanced photovoltaic laminates; -- 2 MW of PVL photovoltaic laminates; -- 4 MW of other laminates; -- 11 MW of solar cells. Uni-Solar's state-of-the-industry solar laminates feature a light, flexible and durable design that provides total energy production. Significant worldwide demand is expected for the remaining finished goods inventory of enhanced, Uni-Solar(C) brand thin-film photovoltaic laminates, photovoltaic and other laminates, in addition to solar cells and other related assets. 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). An official committee of unsecured creditors has been appointed in the case. Foley and Lardner, LLP represents the Committee. Scouler & Company, LLC, serves as financial advisor. A group of shareholders had asked a bankruptcy judge to allow it to form an official committee with lawyers and expenses paid for by the company. The company had estimated in court papers that it was worth $986 million, based on nearly $800 million of investment in the manufacturing unit. The Debtors disclosed that they had canceled the auction of the going concern sale of USO and discontinued the court-approved sale process because of the failure to receive an acceptable qualified bid by the bid deadline. Quarton Partners, the companies' investment banker, is continuing to work with prospective buyers on alternative transactions. In addition, the companies have retained auction services provider Hilco Industrial to prepare for an orderly sale of the companies' assets. ENERGY FUTURE: James Huffines Resign from Board of Directors ------------------------------------------------------------ James R. Huffines notified Energy Future Holdings Corp. of his resignation, effective immediately, from the board of directors of EFH Corp. and each board of directors or managers of EFH Corp.'s subsidiaries on which he served as a director or manager. About Energy Future Energy Future Holdings Corp., formerly known as TXU Corp., is a privately held diversified energy holding company with a portfolio of competitive and regulated energy businesses in Texas. Oncor, an 80%-owned entity within the EFH group, is the largest regulated transmission and distribution utility in Texas. The Company delivers electricity to roughly three million delivery points in and around Dallas-Fort Worth. EFH Corp. was created in October 2007 in a $45 billion leverage buyout of Texas power company TXU in a deal led by private-equity companies Kohlberg Kravis Roberts & Co. and TPG Inc. The Company's balance sheet at Dec. 31, 2011, showed $44.07 billion in total assets, $51.83 billion in total liabilities, and a $7.75 billion total deficit. Energy Future had a net loss of $1.91 billion on $7.04 billion of operating revenues for the year ended Dec. 31, 2011, compared with a net loss of $2.81 billion on $8.23 billion of operating revenues during the prior year. * * * In late January 2012, Moody's Investors Service changed the rating outlook for Energy Future Holdings Corp. (EFH) and its subsidiaries to negative from stable. Moody's affirmed EFH's Caa2 Corporate Family Rating (CFR), Caa3 Probability of Default Rating (PDR), SGL-4 Speculative Grade Liquidity Rating and the Baa1 senior secured rating for Oncor. EFH's Caa2 CFR and Caa3 PDR reflect a financially distressed company with limited flexibility. EFH's capital structure is complex and, in our opinion, untenable which calls into question the sustainability of the business model and expected duration of the liquidity reserves. FIELD FAMILY: Involuntary Chapter 11 Case Summary ------------------------------------------------- Alleged Debtor: Field Family Associates, LLC aka Hampton Inn - JFK 150 S. Warner Road, Suite 260 King of Prussia, PA 19406 Case Number: 12-16331 Involuntary Chapter 11 Petition Date: July 2, 2012 Court: Eastern District of Pennsylvania (Philadelphia) Judge: Stephen Raslavich Petitioner's Counsel: Pro Se Creditors who signed the petition: Petitioner Nature of Claim Claim Amount ---------- --------------- ------------ Ollie Cherniahivsky & Architectural $9,272 Assoc. Services 1022 Spruce St Philadelphia, PA 19107 T&L Cleaning, Inc. Housekeeping $34,778 22 Hillvale Rd. Services Syosset, NY 11791 Kanch USA Inc. Products/Services $2,474 304 Park Avenue South, 11th Floor New York, NY 10010 Leon's Supply, Inc. Services $2,564 P.O. Box 220374 Brooklyn, NY 11222 Penn Glass $506 84-06 Liberty Avenue Ozone Park, NY 11417 FLETCHER INT'L: Fund Fights Bermuda Liquidation in New York ----------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that a master fund named Fletcher International Ltd. is giving a New York bankruptcy judge an opportunity to decide whether hedge funds that incorporate abroad can use U.S. Bankruptcy Court to stop investors when they seek liquidation in places like Bermuda or the Cayman Islands. According to the report, Fletcher International describes itself as a master fund in a structure including feeder funds. Incorporated in Bermuda, Fletcher International says it's run out of New York. Money invested in the feeder funds in turn was invested in illiquid and complex investments made by the master fund, Fletcher International said after filing a Chapter 11 petition. Fletcher International intends to use the New York bankruptcy to stop an attempted liquidation in Bermuda. Mr. Rochelle relates that Fletcher International explained in court filings how investors in feeder funds sought redemption of their investments and initiated liquidations in the Cayman Islands of two companies that are the indirect owners of most of Fletcher International. Fletcher International is appealing the initiation of the liquidations in the Caymans. The Cayman liquidators, the report adds, are now seeking the liquidation of Fletcher International in Bermuda. After filing under Chapter 11, Fletcher International started a lawsuit in bankruptcy court on July 2 asking U.S. Bankruptcy Judge Robert E. Gerber to enjoin the Cayman liquidators from moving ahead with the attempted liquidation in Bermuda. Fletcher International contends that the liquidators lack the knowledge or experience to liquidate complex investments. About Fletcher International Fletcher International, Ltd., filed a bare-bones Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-12796) on June 29, 2012, in Manhattan. The Bermuda exempted company estimated assets and debts of $10 million to $50 million. The bankruptcy documents were signed by its president and director, Floyd Saunders. David R. Hurst, Esq., at Young Conaway Stargatt & Taylor, LLP, in New York, serves as counsel. Fletcher International Ltd. is managed by the investment firm of Alphonse "Buddy" Fletcher Jr. Fletcher Asset Management was founded in 1991. During its initial four years, FAM operated as a broker dealer trading various debt and equity securities and making long-term equity investments. Then, in 1995, FAM began creating and managing a family of private investment funds. The Debtor is a master fund in the Fletcher Fund structure. As a master fund, it engages in proprietary trading of various financial instruments, including complex, long-term, illiquid investments. The Debtor is directly owned by Fletcher Income Arbitrage Fund and Fletcher International Inc., which own roughly 83% and 17% of the Debtor's common shares, respectively. Arbitrage's direct parent entities are Fletcher Fixed Income Alpha Fund and FIA Leveraged Fund, both of which are incorporated in the Cayman Islands and are subject to liquidation proceedings in that jurisdiction, and which own roughly 76% and 22% of Arbitrage's common stock, respectively. The Debtor currently has a single subsidiary, The Aesop Fund Ltd. FR 160: Section 341(a) Meeting Scheduled for July 26 ---------------------------------------------------- The U.S. Trustee for Region 18 will convene a meeting of creditors in the Chapter 11 cases of FR 160 LLC. The meeting will be held at the U.S. Trustee Meeting Room, 230 N. First Avenue, Suite 102, Phoenix, Arizona. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. FR 160 LLC filed a bare-bones Chapter 11 petition (Bankr. D. Ariz. Case No. 12-13116) in Phoenix on June 12, 2012. Flagstaff, Arizona-based FR 160 claims to be a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101(51B) and estimated assets of up to $50 million and debts of up to $100 million. According to the case docket, the list of creditors must be uploaded within seven days, otherwise the case may be dismissed without further notice. GIBRALTAR KENTUCKY: Robert Derderian Approved as Accountant ----------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida approved Gibraltar Kentucky Development, LLC's amended motion to employ Robert Derderian of Lazzara & Company, P.C., as accountant. A full-text copy of the May 29 amended application is available for free at: http://bankrupt.com/misc/GIBRALTARKENTUCKY-accountant.pdf As reported in the Troubled Company Reporter on June 6, 2012, the Debtor requires the services of an accountant to perform ordinary and necessary accounting services required in the administration of the estate. The Debtor proposes to employ the accountant on a general retainer. To the best of the Debtor's knowledge, the accountant does not hold or represent any interest adverse to the Debtor or the estate, and is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. About Gibraltar Kentucky Development Gibraltar Kentucky Development, LLC, filed a Chapter 11 bankruptcy petition (Bankr. S.D. Fla. Case No. 12-13289) on Feb. 10, 2012, in West Palm Beach, Florida. Palm Beach Gardens-based Gibraltar Kentucky says that it is not a small business debtor under 11 U.S.C. Sec. 101(51D). Documents attached to the petition indicate that McCaugh Energy LLC owns 42.15% of the "fee simple" securities. According to the Web site http://www.gibraltarenergygroup.com/ Gibraltar Kentucky is part of the Gibraltar Energy Group. The various companies of the group are involved with the drilling, development and production of oil and gas, as well as, the sale of coal and timber. Offices are in Michigan and Florida and investments are in Michigan and Kentucky. Judge Erik P. Kimball presides over the case. David L. Merrill, Esq., at Talarchyk Merrill, LLC, serves as the Debtor's counsel. The Debtor disclosed $175,395,449 in assets and $1,193,516 in liabilities as of the Chapter 11 filing. The petition was signed by Bill Boyd, as manager. Steven R. Turner, Trustee for Region 21, has informed the Court that, until further notice, he will not appoint a committee of creditors. GORDIAN MEDICAL: Wants Exclusive Plan Filing Stretched to Oct. 31 ----------------------------------------------------------------- Gordian Medical, Inc., dba American Medical Technologies, seeks a 130-day extension of its exclusive plan filing period and exclusive solicitation period. The Debtor's Exclusive Plan Filing Period was set to expire June 23, 2012 and Exclusive Solicitation Period will expire Aug. 22. The Debtor seeks to extend the Exclusive Periods to Oct. 31 and Dec. 31, respectively. The Debtor submits that an extension of the Exclusive Periods will facilitate its ability to reach a resolution, whether by agreement or through litigation, of its dispute with The Centers for Medicare & Medicaid Services pertaining to CMS's refusal to pay for certain wound dressings sold by the Debtor to residents of nursing home facilities and the related withholding from the Debtor of certain Medicare payments, which payments account for a substantial amount of the Debtor's revenue. Although the Debtor has been attempting to negotiate a resolution of the issues with CMS, no such resolution has yet been achieved, therefore, the Debtor will not be in a position to file a plan within the original 120 day exclusive plan filing period. About Gordian Medical Gordian Medical, Inc., dba American Medical Technologies, filed a Chapter 11 petition (Bankr. C.D. Calif. Case No. 12-12339) in Santa Ana, California, on Feb. 24, 2012, after Medicare refunds were halted. The Debtor estimated assets and debts of up to $50 million. It has $4.3 million in cash and $31.1 million in receivables due from Medicare. Irvine, California-based Gordian Medical provides supplies and services to treat serious wounds. The company has active relationships with and serves patients in more than 4,000 nursing facilities in 49 states with the heaviest concentration of the nursing homes being in the south and southeast sections of the United States. Judge Mark S. Wallace oversees the case. Pachulski Stang Ziehl & Jones LLP serves as the Debtor's counsel. GlassRatner Advisory & Capital Group LLC serves as the Debtor's financial advisor. The U.S. Trustee appointed five members to the Official Committee of Unsecured Creditors. The Committee is represented by Landau Gottfried & Berger LLP. GRANDPARENTS.COM INC: Posts $4.5 Million Net Loss in Q1 2012 ------------------------------------------------------------ Grandparents.com, Inc.,, formerly NorWesTech, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $4.51 million on $66,794 of revenue for the three months ended March 31, 2012, compared with a net loss of $706,279 on $122,995 of revenue for the same period of 2011. The Company's balance sheet at March 31, 2012, showed $8.75 million in total assets, $2.10 million in total liabilities, and stockholders' equity of $6.65 million. "The Company has incurred a net loss of approximately $4.5 million and used approximately $1.0 million in cash for operating activities during the three-months ended March 31, 2012," the Company said in the filing. "Without additional capital from existing or outside investors or further financing, the Company's ability to continue to implement its business plan may be limited. These conditions raise substantial doubt about the Company's ability to continue as a going concern." A copy of the Form 10-Q is available for free at: http://is.gd/y2Dxl6 Based in New York, N.Y., Grandparents.com, Inc., together with its consolidated subsidiaries, is a family-oriented social media company that through its website, www.grandparents.com, serves the age 50+ demographic market. The website offers activities, discussion groups, expert advice and newsletters that enrich the lives of grandparents by providing tools to foster connections among grandparents, parents, and grandchildren. GRANITE DELLS: Hearing on Case Dismissal Plea Set for July 27 ------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Arizona will convene a hearing on July 27, 2012, at 9 a.m., to consider the motion to dismiss the Chapter 11 case of Granite Dells Ranch Holdings, LLC. Arizona Eco Development LLC requested for the dismissal of the Debtor's case because: 1. the Debtor has failed to file a single operating report as required by Local Bankruptcy Rule 2015-1(a); 2. the Debtor failed to file its disclosure statement by June 11, 2012 deadline; and 3. Cavan Management Services, L.L.C., Granite Dells Ranch Holdings, LLC's purported managing member, is insolvent and is incapable of managing the Debtor. About Granite Dells Ranch Holdings Scottsdale, Arizona-based Granite Dells Ranch Holdings LLC filed a bare-bones Chapter 11 petition (Bankr. D. Ariz. Case No. 12-04962) in Phoenix on March 13, 2012. Judge Redfield T. Baum PCT Sr. oversees the case. The Debtor is represented by Alan A. Meda, Esq., at Stinson Morrison Hecker LLP. The Debtor disclosed $2.22 million in assets and $157 million in liabilities as of the Chapter 11 filing. Cavan Management Services, LLC is the Debtor's manager. David Cavan, member of the firm, signed the Chapter 11 petition. Arizona ECO Development LLC, which acquired a $83.2 million 2006 loan by the Debtor, is represented by Snell & Wilmer L.L.P. The resolution authorizing the Debtor's bankruptcy filing says the Company is commencing legal actions against Stuart Swanson, AED, and related entities relating to the purchase by Mr. Swanson of a promissory note payable by the Company to the parties that sold a certain property to the Company. According to Law 360, AED sued Granite Dells on March 6 asking the Arizona court to appoint a receiver. Arizona ECO is foreclosing on a secured loan backed by 15,000 acres of Arizona land. The United States Trustee said that an official committee has not been appointed in the bankruptcy case of Granite Dells because an insufficient number of unsecured creditors have expressed interest in serving on a committee. GRANITE DELLS: Tri-City Investment Wants to File Alternative Plan ----------------------------------------------------------------- Tri-City Investment & Development, LLC, asks the U.S. Bankruptcy Court for the District of Arizona for authorization to file a plan of reorganization and terminate any exclusivity in whole or in part of Granite Dells Ranch Holdings, LLC. Tri-City is an equity security holder in the Debtor, owning 39.25% of the members' interest of the Company. According to Tri-City, it has communicated with the Debtor in hope of formulating a mutually agreeable Plan but has not succeeded in its effort. Tri-City requests for the opportunity to solicit votes for a competing plan based on the allegations of improper expenditures within the Debtor's operations -- the current management has incurred debt a substantial portion of which was used to pay management fees and insider compensation. About Granite Dells Ranch Holdings Scottsdale, Arizona-based Granite Dells Ranch Holdings LLC filed a bare-bones Chapter 11 petition (Bankr. D. Ariz. Case No. 12-04962) in Phoenix on March 13, 2012. Judge Redfield T. Baum PCT Sr. oversees the case. The Debtor is represented by Alan A. Meda, Esq., at Stinson Morrison Hecker LLP. The Debtor disclosed $2.22 million in assets and $157 million in liabilities as of the Chapter 11 filing. Cavan Management Services, LLC is the Debtor's manager. David Cavan, member of the firm, signed the Chapter 11 petition. Arizona ECO Development LLC, which acquired a $83.2 million 2006 loan by the Debtor, is represented by Snell & Wilmer L.L.P. The resolution authorizing the Debtor's bankruptcy filing says the Company is commencing legal actions against Stuart Swanson, AED, and related entities relating to the purchase by Mr. Swanson of a promissory note payable by the Company to the parties that sold a certain property to the Company. According to Law 360, AED sued Granite Dells on March 6 asking the Arizona court to appoint a receiver. Arizona ECO is foreclosing on a secured loan backed by 15,000 acres of Arizona land. The United States Trustee said that an official committee has not been appointed in the bankruptcy case of Granite Dells because an insufficient number of unsecured creditors have expressed interest in serving on a committee. GULF, COLORADO & SAN SABA: Railway Files for Chapter 11 in Austin ----------------------------------------------------------------- Brady, Texas-based Gulf, Colorado & San Saba Railway Corporation, owner of a railroad in San Saba, Mills, McCulloch and Lampasas Counties, filed a Chapter 11 petition (Bankr. W.D. Tex. Case No. 12-11531) in Austin on July 3, 2012. The Debtor estimated assets of $10 million to $50 million and liabilities of up to $10 million. Frances A. Smith, Esq., at Shackelford Melton & McKinley, in Dallas, serves as counsel. Ian T. Peck, Esq., at Abigail Ottmers, Esq., at Haynes and Boone, LLP -- ian.peck@haynesboone.com and abigail.ottmers@haynesboone.com -- as counsel to BNSF Railway Company, have filed a notice of appearance in the Chapter 11 case. H&M OIL: Prospect Capital Wants DIP/Cash Collateral Motions Denied ------------------------------------------------------------------ Prospect Capital Corporation, a secured lender owed $88.8 million, asks the U.S. Bankruptcy Court for the Northern District of Texas to (i) deny H&M Oil and Gas, LLC's motion to obtain postpetition financing and use cash collateral. The Debtor is seeking to incur $5,075,000 in postpetition DIP financing from Scattered Corporation. The Debtor is seeking to use cash collateral and DIP loan proceeds to fund its ongoing drilling obligations and day-to-day operations. Prospect previously failed in its effort to replace management with a Chapter 11 trustee. Leon A. Greenblatt is the director and manager of the Debtor. In the new motion, Prospect says the Debtor has been negotiating a consensual resolution of the DIP Motion. "It appears, however, that the Debtor/ Scattered has not been negotiating in good faith. Mr. Greenblatt, through his control of Scattered, is causing the Debtor (also controlled by Mr. Greenblatt) to reject Prospect's offer for the consensual use of cash collateral. The offer provides for adequate protection to which Prospect is entitled under law," Prospect tells the Court. "Mr. Greenblatt's refusal to allow the Debtor to come to a consensual agreement appears to be motivated to further Mr. Greenblatt's goal of minimizing borrowings from Scattered under the proposed DIP loan, which is subordinated to Prospect's claims and liens." Prospect is represented by: Timothy A. Davidson II, Esq. Joseph P. Rovira, Esq. ANDREWS KURTH LLP 600 Travis, Suite 4200 Houston, TX 77002 Tel: (713) 220-4200 Fax: (713) 220-4285 E-mail: taddavidson@andrewskurth.com joseph.rovira@andrewskurth.com About H&M Oil H&M Oil & Gas, LLC, filed a bare-bones Chapter 11 petition (Bankr. N.D. Tex. Case No. 12-32785) in its hometown Dallas on April 30, 2012. Another entity, Anglo-American Petroleum Corp. (Case No. 12-32786) simultaneously filed for Chapter 11. Each of the Debtors estimated assets and debts of $50 million to $100 million. H&M Oil & Gas is an oil and gas production and development company. H&M, through its operating company, H&M Resources LLC, is focused on developing its leases in the Permian basin and Texas panhandle. Dallas, Texas-based Anglo-American Petroleum -- http://www.angloamericanpetroleum.com/-- is the holding corporation for H&M Oil. Judge Barbara J. Houser presides over the case. The Debtors are represented by Keith William Harvey, Esq., at Anderson Tobin PLLC, in Dallas. Prospect Capital Corporation, the Debtors' lone secured creditor, is represented in the case by Timothy A. Davidson II, Esq., and Joseph P. Rovira, Esq., at Andrews Kurth LLP. H&M OIL: Court Approves Anderson Tobin as Chapter 11 Counsel ------------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Texas, according to H&M Oil and Gas, LLC, and Anglo-American Petroleum Corporation authorized the Debtors to employ Anderson Tobin, PLLC as counsel. As reported in the Troubled Company Reporter on May 23, 2012, the Debtors said complex questions and issues potentially will arise in the case, and the Debtors will need to quickly and efficiently respond thereto or take the appropriate action during the Chapter 11 process. Due to the breadth of practice disciplines and expertise within Anderson Tobin, the Debtors believe that the firm has the ability to ably assist the Debtors in the cases. To the best of Debtors' knowledge and belief, Anderson Tobin and its professionals neither hold nor represent any interest adverse to the Debtors in connection with the Chapter 11 cases, and Anderson Tobin is a "disinterested person," as such term is defined in Sec. 101(14) of the Bankruptcy Code. The Debtors propose to pay the firm at its customary hourly rates. The firm's personnel who will primarily work on the case are: (i) Keith W. Harvey, Esq.; (b) Aaron Z. Tobin, Esq.; and Kendal B. Reed. About H&M Oil H&M Oil & Gas, LLC, filed a bare-bones Chapter 11 petition (Bankr. N.D. Tex. Case No. 12-32785) in its hometown Dallas on April 30, 2012. Another entity, Anglo-American Petroleum Corp. (Case No. 12-32786) simultaneously filed for Chapter 11. Each of the Debtors estimated assets and debts of $50 million to $100 million. H&M Oil & Gas is an oil and gas production and development company. H&M, through its operating company, H&M Resources LLC, is focused on developing its leases in the Permian basin and Texas panhandle. Dallas, Texas-based Anglo-American Petroleum -- http://www.angloamericanpetroleum.com/-- is the holding corporation for H&M Oil. Judge Barbara J. Houser presides over the case. The Debtors are represented by Keith William Harvey, Esq., at Anderson Tobin PLLC, in Dallas. Prospect Capital Corporation, the Debtors' lone secured creditor, is represented in the case by Timothy A. Davidson II, Esq., and Joseph P. Rovira, Esq., at Andrews Kurth LLP. HAMPTON ROADS: Anchorage Has 24.9% Ownership as of June 27 ---------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Anchorage Advisors Management, LLC, and its affiliates disclosed that, as of June 27, 2012, they beneficially own 26,391,439 shares of common stock of Hampton Roads Bankshres, Inc., representing 24.9% based upon 105,990,594 common shares currently outstanding as of June 27, 2012. Anchorage Advisors previously reported beneficial ownership of 196,543,825 common shares or a 23.1% equity stake as of Dec. 30, 2010. A copy of the amended filing is available for free at: http://is.gd/Yx2GhY About Hampton Roads Bankshares Hampton Roads Bankshares, Inc. (NASDAQ: HMPR) -- http://www.hamptonroadsbanksharesinc.com/-- is a bank holding company that was formed in 2001 and is headquartered in Norfolk, Virginia. The Company's primary subsidiaries are Bank of Hampton Roads, which opened for business in 1987, and Shore Bank, which opened in 1961. Currently, Bank of Hampton Roads operates twenty- eight banking offices in the Hampton Roads region of southeastern Virginia and twenty-four offices in Virginia and North Carolina doing business as Gateway Bank & Trust Co. Shore Bank serves the Eastern Shore of Maryland and Virginia through eight banking offices and fifteen ATMs. Effective June 17, 2010, the Company and its banking subsidiary, Bank of Hampton Roads ("BOHR"), entered into a written agreement with the Federal Reserve Bank of Richmond and the Bureau of Financial Institutions of the Virginia State Corporation Commission. The Company's other banking subsidiary, Shore Bank, is not a party to the Written Agreement. Under the terms of the Written Agreement, among other things, BOHR agreed to develop and submit for approval plans to (a) strengthen board oversight of management and BOHR's operations, (b) strengthen credit risk management policies, (c) improve BOHR's position with respect to loans, relationships, or other assets in excess of $2.5 million which are now, or may in the future become, past due more than 90 days, are on BOHR's problem loan list, or adversely classified in any report of examination of BOHR, (d) review and revise, as appropriate, current policy and maintain sound processes for determining, documenting, and recording an adequate allowance for loan and lease losses, (e) improve management of BOHR's liquidity position and funds management policies, (f) provide contingency planning that accounts for adverse scenarios and identifies and quantifies available sources of liquidity for each scenario, (g) reduce the Bank's reliance on brokered deposits, and (h) improve BOHR's earnings and overall condition. The Company reported a net loss of $98 million in 2011, compared with a net loss of $210.35 million in 2010. The Company's balance sheet at March 31, 2012, showed $2.13 billion in total assets, $2.02 billion in total liabilities and $105.29 million in total shareholders' equity. HAMPTON ROADS: Carlyle Group Hikes Stake to 24.9% ------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Carlyle Group Management L.L.C. and its affiliates disclosed that as of June 27, 2012, they beneficially own 26,391,440 shares of common stock of Hampton Roads Bankshares, Inc., representing 24.9% of the shares outstanding. Pursuant to the terms of the Standby Purchase Agreement, dated as of May 21, 2012, among the Company, Carlyle Financial Services Harbor, L.P., and the other Investors, Carlyle acquired, for an aggregate purchase price of $12,964,523, 18,520,747 shares of the Company's Common Stock. A copy of the amended filing is available for free at http://is.gd/yUCcjg About Hampton Roads Bankshares Hampton Roads Bankshares, Inc. (NASDAQ: HMPR) -- http://www.hamptonroadsbanksharesinc.com/-- is a bank holding company that was formed in 2001 and is headquartered in Norfolk, Virginia. The Company's primary subsidiaries are Bank of Hampton Roads, which opened for business in 1987, and Shore Bank, which opened in 1961. Currently, Bank of Hampton Roads operates twenty- eight banking offices in the Hampton Roads region of southeastern Virginia and twenty-four offices in Virginia and North Carolina doing business as Gateway Bank & Trust Co. Shore Bank serves the Eastern Shore of Maryland and Virginia through eight banking offices and fifteen ATMs. Effective June 17, 2010, the Company and its banking subsidiary, Bank of Hampton Roads ("BOHR"), entered into a written agreement with the Federal Reserve Bank of Richmond and the Bureau of Financial Institutions of the Virginia State Corporation Commission. The Company's other banking subsidiary, Shore Bank, is not a party to the Written Agreement. Under the terms of the Written Agreement, among other things, BOHR agreed to develop and submit for approval plans to (a) strengthen board oversight of management and BOHR's operations, (b) strengthen credit risk management policies, (c) improve BOHR's position with respect to loans, relationships, or other assets in excess of $2.5 million which are now, or may in the future become, past due more than 90 days, are on BOHR's problem loan list, or adversely classified in any report of examination of BOHR, (d) review and revise, as appropriate, current policy and maintain sound processes for determining, documenting, and recording an adequate allowance for loan and lease losses, (e) improve management of BOHR's liquidity position and funds management policies, (f) provide contingency planning that accounts for adverse scenarios and identifies and quantifies available sources of liquidity for each scenario, (g) reduce the Bank's reliance on brokered deposits, and (h) improve BOHR's earnings and overall condition. The Company reported a net loss of $98 million in 2011, compared with a net loss of $210.35 million in 2010. The Company's balance sheet at March 31, 2012, showed $2.13 billion in total assets, $2.02 billion in total liabilities and $105.29 million in total shareholders' equity. HARRISBURG, PA: May Run Out of Cash by October ---------------------------------------------- Nick Malawskey at The Patriot-News reports that a financial analysis of Harrisburg's structural deficit shows the city may run out of cash by October. City Receiver William Lynch said in a court update that as of June the city had $5.5 million in the bank. Most of Harrisburg's taxes are collected at the beginning of the year, The Patriot-News relates. That fund, says The Patriot-News, will slowly be depleted over the next few months. According to the report, Harrisburg started deficit spending in April. An analysis by the Pennsylvania Economy League shows that Harrisburg's coffers may be short more than $3.8 million by year- end, the report states. The analysis, the report says, assumes that Harrisburg will make a $3.9 million debt payment in September, and does not account for any additional revenue raised by an increase to Harrisburg's Earned Income Tax. The Patriot-News reports that Harrisburg has started to slow payments to outside vendors and going forward may carry a past-due balance of $4 million on its books. According to The Patriot-News, the receiver's office said it is continuing with the sale of the incinerator and the lease of the parking garages and the water system. The Patriot-News states that money from those deals will be used to pay down the more than $317 million debt it incurred as a result of a failed retrofit of the city incinerator. The Lancaster Solid Waste Authority and Cambridge Project Development are in contention to bid on the incinerator, says The Patriot-News. About Harrisburg, Pennsylvania The city of Harrisburg, in Pennsylvania, is coping with debt related to a failed revamp of an incinerator. The city is $65 million in default on $242 million owing on bonds sold to finance an incinerator that converts trash to energy. The Harrisburg city council voted 4-3 on Oct. 11, 2011, to authorize the filing of a Chapter 9 municipal bankruptcy (Bankr. M.D. Pa. Case No. 11-06938). The city claims to be insolvent, unable to pay its debt and in imminent danger of having tax revenue seized by holders of defaulted bonds. Judge Mary D. France presided over the Chapter 9 case. Mark D. Schwartz, Esq. and David A. Gradwohl, Esq., served as Harrisburg's counsel. The petition estimated $100 million to $500 million in assets and debts. Susan Wilson, the city's chairperson on Budget and Finance, signed the petition. Harrisburg said in court papers it is in imminent jeopardy through six pending legal actions by creditors with respect to a number of outstanding bond issues relating to the Harrisburg Materials, Energy, Recycling and Recovery Facilities, which processes waste into steam and electrical energy. The owner and operator of the incinerator is The Harrisburg Authority, which is unable to pay the bond issues. The city is the primary guarantor under each bond issue. The lawsuits were filed by Dauphin County, where Harrisburg is located, Joseph and Jacalyn Lahr, TD Bank N.A., and Covanta Harrisburg Inc. The Commonwealth of Pennsylvania, the County of Dauphin, and Harrisburg city mayor Linda D. Thompson and other creditors and interested parties objected to the Chapter 9 petition. The state later adopted a new law allowing the governor to appoint a receiver. Kenneth W. Lee, Esq., Christopher E. Fisher, Esq., Beverly Weiss Manne, Esq., and Michael A. Shiner, Esq., at Tucker Arensberg, P.C., represented Mayor Thompson in the Chapter 9 case. Counsel to the Commonwealth of Pennsylvania was Neal D. Colton, Esq., Jeffrey G. Weil, Esq., Eric L. Scherling, Esq., at Cozen O'Connor. In November 2011, the Bankruptcy Judge dismissed the Chapter 9 case because (1) the City Council did not have the authority under the Optional Third Class City Charter Law and the Third Class City Code to commence a bankruptcy case on behalf of Harrisburg and (2) the City was not specifically authorized under state law to be a debtor under Chapter 9 as required by 11 U.S.C. Sec. 109(c)(2). Dismissal of the Chapter 9 petition was upheld in a U.S. District Court. That same month, the state governor appointed David Unkovic as receiver for Harrisburg. Mr. Unkovic is represented by the Municipal Recovery & Restructuring group of McKenna Long & Aldridge LLP, led by Keith Mason, Esq., co-chair of the group. Mr. Unkovic resigned as receiver March 30, 2012. HAWKER BEECHCRAFT: Akin Gump Approved as Committee's Legal Counsel ------------------------------------------------------------------ The Hon. Stuart M. Bernstein of the U.S. Bankruptcy Court for the Southern District of New York authorized the Official Committee of Unsecured Creditors in the Chapter 11 cases of Hawker Beechcraft, Inc., to retain the law firm of Akin Gump Strauss Hauer & Feld LLP as its legal counsel. The firm's personnel who will work in the case are: (a) Daniel H. Golden, Esq.; (b) David H. Botter, Esq.; and Alexis Freeman, Esq. 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 Beechcraft disclosed assets of $1,831,097 plus undetermined amounts, and liabilities of $1,704,736,958 plus undetermined amounts. 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. The Committee tapped FTI Consulting, Inc., as its financial advisor. HAWKER BEECHCRAFT: Crowe & Dunlevy OK'd as Committee's FAA Counsel ------------------------------------------------------------------ The Hon. Stuart M. Bernstein of the U.S. Bankruptcy Court for the Southern District of New York authorized the Official Committee of Unsecured Creditors in the Chapter 11 cases of Hawker Beechcraft, Inc., to retain Crowe & Dunlevy, P.C. as its special federal aviation administration counsel. As reported in the Troubled Company Reporter on June 22, 2012, the Committee related that the Debtors own 164 aircraft which are registered with the FAA. Federal law requires filing with the FAA to perfect any liens that burden the Debtors' aircraft. According to the Committee, C&D has previously represented two of the Debtors, Hawker Beechcraft Corporation and HBC, LLC, in connection with FAA registration matters. That representation was concluded and C&D has no ongoing representation of any of the Debtors or any other connections with the Debtors. The firm is not owed any fees by any of the Debtors for this prior representation. C&D is expected to, among other things: a) examine title and record status of aircraft, aircraft engines, aircraft propellers and spare parts locations; b) review and analyze bills of sale, applications, affidavits and instruments recorded with the FAA Aircraft Registry; and c) issue opinions with respect to aircraft title and registration, encumbrances of record with the FAA with respect to aircraft, aircraft engines, aircraft propellers and spare parts locations, the recordability of instruments filed with the FAA and the perfection of instruments filed with the FAA. The hourly rates of C&D's personnel are: Shareholders and Directors $250 - $535 Of Counsel $230 - $475 Associates $190 - $235 Paraprofessionals $105 - $197 C&D attorneys having primary responsibility for providing services to the Committee and their hourly rates are: Preston G. Gaddis, II, director $450 Judy Hamilton Morse, director $345 J. Robert Kalsu, director $300 William E. Van Egmond, associate $260 Julia Stein Dittberner, associate $200 Dianna J. Mysinger, paralegal $160 Michelle Long, paralegal $135 Amy Kreimer, paralegal $145 Paula K. McWherter, paralegal $145 Matthew D. McBride, paralegal $140 Donna K. Hinkle, paralegal $135 Kelly Wood, Int'l Registry Specialist $105 Preston G. Gaddis, II, of counsel attorney and a director in the Oklahoma City Office of C&D, assures the Court that C&D does not represent and does not hold any interest adverse to the Debtors' estates or their creditors in the matters upon which C&D is to be engaged. 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 Beechcraft disclosed assets of $1,831,097 plus undetermined amounts, and liabilities of $1,704,736,958 plus undetermined amounts. 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. The Committee tapped FTI Consulting, Inc., as its financial advisor. HAWKER BEECHCRAFT: FTI Approved as Committee's Advisor ------------------------------------------------------ The Hon. Stuart M. Bernstein of the U.S. Bankruptcy Court for the Southern District of New York authorized the Official Committee of Unsecured Creditors in the Chapter 11 cases of Hawker Beechcraft, Inc., to retain FTI Consulting, Inc., together with its wholly owned subsidiaries, agents, independent contractors and employees, as its financial advisor. As reported in the Troubled Company Reporter on June 20, 2012, FTI is expected to, among other things: a) assist in the review of financial related disclosures required by the Court, including the schedules of assets and liabilities, the statement of financial affairs and monthly operating reports; and b) assist with the assessment and monitoring of the Debtors' short term cash flow, liquidity and operating results. FTI will paid on payment on a fixed monthly basis of $200,000 and a completion fee of $1,000,000, plus reimbursement of actual and necessary expenses incurred by FTI, including legal fees related to the application and future fee applications as approved by the Court. In connection with the provision of services, FTI will retain the Arvai Group as an independent contractor, pursuant to a letter of engagement by and between the Arvai Group and FTI. The Arvai Group will provide aviation consulting services to the Committee. In accordance with the Arvai Engagement Letter, the Arvai Group will seek payment for compensation on an hourly basis, plus reimbursement of actual and necessary expenses incurred. FTI will pay the Arvai Group's Hourly Fees from the Monthly Fixed Fee and will seek reimbursement of the Expenses from the Debtors as part of the FTI fee application process. To the best of the Committee's knowledge, FTI is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. 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 Beechcraft disclosed assets of $1,831,097 plus undetermined amounts, and liabilities of $1,704,736,958 plus undetermined amounts. 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. The Committee tapped FTI Consulting, Inc., as its financial advisor. HAWKER BEECHCRAFT: Kurtzman Carson Approved as Information Agent ---------------------------------------------------------------- The Hon. Stuart M. Bernstein of the U.S. Bankruptcy Court for the Southern District of New York authorized the Official Committee of Unsecured Creditors in the Chapter 11 cases of Hawker Beechcraft, Inc., to retain Kurtzman Carson Consultants LLC, as information agent. The Court also ordered that the Committee, its professionals and its members and their respective agents, representatives, advisors and counsel will not be required, absent entry of an order of the Court, to disseminate information to unsecured creditors developed independently or that is or becomes available to the Committee from a source other than the Debtors, which information is non- public in nature, including, but not limited to, any recommendations or reports to Committee members prepared by Akin Gump Strauss Hauer & Feld LLP or FTI Consulting, Inc. KCC is authorized to, among other things: a) establish and maintain the Committee Website; b) distribute updates regarding the Chapter 11 cases; and c) establish and maintain a toll-free telephone number and electronic mail address for creditors to submit questions and comments. 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 Beechcraft disclosed assets of $1,831,097 plus undetermined amounts, and liabilities of $1,704,736,958 plus undetermined amounts. 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. The Committee tapped FTI Consulting, Inc., as its financial advisor. HOLDINGS OF EVANS: SFG Venture Wants Deal Lifting Stay Approved --------------------------------------------------------------- SFG Venture LLC, asks the U.S. Bankruptcy Court for the Southern District of Georgia for relief of stay in the Chapter 11 cases of Holdings of Evans, LLC. The Debtor is obligated to SFG, as assignee, under a Promissory Note dated Nov. 14, 2008, in the original principal amount of $6,196,200, as modified from time to time. According to SFG, pursuant to a stipulation reached with the Debtor, the amount of SFG's allowed claim is no longer controverted by the Debtor. Further, SFG's liens and security interests are deemed legal, valid, binding, enforceable, perfected, and unavoidable upon and against the Debtor and all other parties in interest, excluding a trustee appointed under Chapter 7 of the Bankruptcy Code. SFG notes that, among other things: (i) the Debtor has determined that the bankruptcy estate does not have any equity in the property; (ii) the case has been pending for more than 8 months; and (iii) the Debtor has been unable to identify any source of alternative financing. The Debtor and SFG have agreed to the terms of the proposed order consenting to the stay relief which: 1) modifies the automatic stay to allow SFG to advertise a foreclosure sale of the property by Sept. 4, 2012, or thereafter; and 2) terminates the automatic stay to allow SFG to foreclose on the property -- all or substantially all of the Debtor's real and personal property, including the real property -- in the event that (i) the Debtor cannot (1) obtain Court approval of and consummate a Section 363 sale of substantially all of the Debtor's assets, or (2) confirm and consummate a Chapter 11 plan of reorganization; and (ii) the Debtor cannot obtain court approval of a release of all claims that the Debtor, the Debtor's bankruptcy estate, and the guarantors may have against SFG either through a confirmed plan of reorganization or a 9019 settlement motion, all prior to the close of business on Aug. 27, 2012. About Holdings of Evans Martinez, Georgia-based Holdings of Evans LLC, dba Candlewood Suites, owns an improved real property located at 156 Classic Road in Athens, Georgia, and is engaged in the business of operating a hotel commonly known as Candlewood Suites. Holdings of Evans filed for Chapter 11 bankruptcy (Bankr. S.D. Ga. Case No. 11-11756) on Sept. 2, 2011. Judge Samuel L. Kay presides over the case. Shepard Plunkett Hamilton Boudreaux LLC serves as the Debtor's Chapter 11 counsel. The Debtor disclosed $11,115,538 in assets and $6,784,463 in liabilities as of the Chapter 11 filing. The petition was signed by GB Sharma, managing member. HOLDINGS OF EVANS: Allowed to Use Cash Collateral Until Aug. 31 --------------------------------------------------------------- The Hon. Susan D. Barrett of the U.S. Bankruptcy Court for the Southern District of Georgia, in an interim order, authorized Holdings of Evans LLC's continued use of the cash collateral until Aug. 31, 2012, or on the occurrence of a termination event. The Court will hold a final hearing on the relief on Aug. 24. The Debtor would use the cash collateral, including collections from rents, accounts receivables, and other cash and income generated from the operation of the Debtor's business to continue its business operation. About Holdings of Evans Martinez, Georgia-based Holdings of Evans LLC, dba Candlewood Suites, owns an improved real property located at 156 Classic Road in Athens, Georgia, and is engaged in the business of operating a hotel commonly known as Candlewood Suites. Holdings of Evans filed for Chapter 11 bankruptcy (Bankr. S.D. Ga. Case No. 11-11756) on Sept. 2, 2011. Judge Samuel L. Kay presides over the case. Shepard Plunkett Hamilton Boudreaux LLC serves as the Debtor's Chapter 11 counsel. The Debtor disclosed $11,115,538 in assets and $6,784,463 in liabilities as of the Chapter 11 filing. The petition was signed by GB Sharma, managing member. HRK HOLDINGS: Port Manatee Wants to Be Paid Before Employees ------------------------------------------------------------ Josh Salman at Bradenton Herald reports that Port Manatee was among 60 creditors expected to attend a hearing slated for July 2, 2012, in U.S. Bankruptcy Court in Tampa, Florida, to argue they should be paid before the employees of HRK Holdings LLC. According to the report, the emergency hearing is the first formal step in HRK's Chapter 11 bankruptcy case, sprung largely by expenses associated with gypsum stack liner leaks last year at the company's Piney Point facility in Palmetto, Florida. HRK is seeking to pay two weeks' worth of back salaries and benefits to 15 unnamed employees totaling $42,000 before its remaining assets are split among creditors. According to the report, some stakeholders suspect those wages are earmarked for HRK CEO Jordan Levy and other high-ranking company officials -- a request they plan to fight if true. The report notes the Company's liability is estimated to total upwards of $50 million, including about $20 million of debt to Regions Bank. According to the report, the Manatee County Port Authority has been pursuing financial damages from HRK for its role in the dredging of Berth 12, which had months of delays due to leaks in the pipes and storage sites that housed the dredged material at Piney Point, a former phosphate facility owned by HRK. The project was completed in October, but while dredging was under way last May, the storage liners at Piney Point sprung leaks into Bishop Harbor. The report notes the port now is paying a $3.28 million settlement to the Michigan dredging contractor that filed suit over the added expenses. The port has been aggressively seeking repayment from HRK for its responsibility. Attorneys representing the port at the Bradenton law firm Lewis. The report says a court trustee will decide what creditors receive a payment and how much. The report further says HRK also has a pending lawsuit against the engineers, consultants and contractors that designed and installed the liner system. The company plans to continue service to customers and tenants until the bankruptcy case is resolved. About HRK Holdings Based in Palmetto, Florida, HRK Holdings LLC owns real property in Manatee County that accommodates a phosphogypsum stack system, a portion of which is used as an alternate disposal area for the management of dredge materials pursuant to a contract with Port Manatee and as authorized under an administrative agreement with the Florida Department of Environmental Protection. The Company and its affiliate, HRK Industries, LLC, filed for Chapter 11 protection (Bankr. M.D. Fla. Case Nos. 12-09868 and 12-09869) on June 27, 2012. Barbara A. Hart, Esq., at Stichter, Riedel, Blain & Prosser, P.A., represents the Debtors. HRK Holdings estimated both assets and debts of between $10 million and $50 million. The petitions were signed by William F. Harley, III, managing member. HUGHES TELEMATICS: Waiting Period of Proposed Merger Terminated --------------------------------------------------------------- HUGHES Telematics, Inc., and Verizon Communications Inc. were orally informed of early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, for the proposed acquisition by merger of the Company by Verizon Telematics Inc., a wholly-owned subsidiary of Verizon. Early termination or expiration of the waiting period under the HSR Act is one of the conditions to the obligations of the Company and Verizon to effect the Merger. About HUGHES Telematics Atlanta, Ga.-based HUGHES Telematics, Inc. is a telematics services company that provides a suite of real-time voice and data communications services and applications for use in vehicles and is developing additional applications for use within and outside of the automotive industry. HUGHES reported a net loss of $85.35 million in 2011, a net loss of $89.56 million in 2010, and a net loss of $163.66 million in 2009. The Company's balance sheet at March 31, 2012, showed $110.18 million in total assets, $211.81 million in total liabilities, and a $101.62 million total stockholders' deficit. In its report on the Company's 2011 financial results, PricewaterhouseCoopers LLP, in Atlanta, Georgia, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred recurring losses from operations and has a net capital deficiency. INKSURE TECHNOLOGIES: Posts $470,000 Net Loss in Q1 2012 -------------------------------------------------------- InkSure Technologies Inc. filed its quarterly report on Form 10-Q, reporting a net loss of $470,000 on $209,000 of revenues for the three months ended March 31, 2012, compared with a net loss of $248,000 on $868,000 of revenues for the corresponding period of 2011. The Company's balance sheet at March 31, 2012, showed $2.05 million in total assets, $747,000 in total liabilities, and stockholders' equity of $1.30 million. "The Company has sustained significant operating losses in recent periods, which has resulted in a significant reduction in its cash reserves." the Company said in the filing. "As reflected in the accompanying financial statements the Company's operations for the three months ended March 31, 2012, resulted in a net loss of $470,000 and negative cash flows from operation activities of $421,000. The Company believes that it will continue to experience losses and increased negative working capital and negative cash flows in the near future and will not be able to return to positive cash flow before it requires additional cash in the near term. The Company may experience difficulties accessing the equity and debt markets and raising such capital, and there can be no assurance that the Company will be able to raise such additional capital on favorable terms or at all. If additional funds are raised through the issuance of equity securities, the Company's existing stockholders will experience significant further dilution." "As a result of the foregoing factors, there is substantial doubt about the Company's ability to continue as a going concern." A copy of the Form 10-Q is available for free at: http://is.gd/NN2DE6 New York, N.Y.-based InkSure Technologies Inc. specializes in comprehensive security solutions, designed to protect branded products and documents from counterfeiting, fraud, and diversion. INNER CITY: Plan Filing Exclusivity Expires July 17 --------------------------------------------------- The Hon. Shelley C. Chapman for the U.S. Bankruptcy Court for the Southern District of New York, in an ex parte bridge order, extended Inner City Media Corp., et al.'s exclusive period to file a proposed Chapter 11 Plan until such time as the Court has entered a final order on the Debtors' request for exclusivity extensions. The Debtors' exclusive filing and solicitation period will expire on July 5, and Nov. 2, 2012, respectively. Out of an abundance of caution, the Debtors requested for an extension of their exclusive periods to preserve all of their options in case the sale transactions cannot be consummated or cannot be consummated on a timely basis. The Debtors explained that while they believe that the sale transactions approved by the Court represent the best way to maximize the value of the Debtors' assets, the Debtors cannot know with certainty if the sale transactions will obtain the requisite regulatory approval from the Federal Communications Commission, let alone before the expiration of the current exclusive periods. The motion is scheduled to be heard by the Court on July 17, 2012, at 10 a.m. About Inner City On Aug. 23, 2011, affiliates of Yucaipa and CF ICBC LLC, Fortress Credit Funding I L.P., and Drawbridge Special Opportunities Fund Ltd., signed involuntary Chapter 11 petitions for Inner City Media Corp. and its affiliates (Bankr. S.D.N.Y. Case Nos. 11-13967 to 11-13979) to collect on a $254 million debt. The Petitioning Creditors are party to the senior secured credit Facility pursuant to which they (or their predecessors in interest) extended $197 million in loans to the Alleged Debtors to be used for general corporate purposes. More than two years ago, the Alleged Debtors defaulted under the Senior Secured Credit Facility, and in any event the entire amount of principal and accrued and unpaid interest and fees became immediately due and payable on Feb. 13, 2010. Inner City Media's affiliates subject to the involuntary Chapter 11 are ICBC Broadcast Holdings, Inc., Inner-City Broadcasting Corporation of Berkeley, ICBC Broadcast Holdings-CA, Inc., ICBC- NY, L.L.C., ICBC Broadcast Holdings-NY, Inc., Urban Radio, L.L.C., Urban Radio I, L.L.C., Urban Radio II, L.L.C., Urban Radio III, L.L.C., Urban Radio IV, L.L.C., Urban Radio of Mississippi, L.L.C., and Urban Radio of South Carolina, L.L.C. Judge Shelley C. Chapman granted each of Inner City Media Corporation and its debtor affiliates relief under Chapter 11 of the United States Code. The decision came after considering the involuntary petitions, and the Debtors' answer to involuntary petitions and consent to entry of order for relief and reservation of rights. Attorneys for Yucaipa Corporate Initiatives Fund II, L.P. and Yucaipa Corporate Initiatives (Parallel) Fund II, L.P. are John J. Rapisardi, Esq., and Scott J. Greenberg, Esq., at Cadwalader, Wickersham & Taft LLP. Attorneys for CF ICBC LLC, Fortress Credit Funding I L.P., and Drawbridge Special Opportunities Fund Ltd. are Adam C. Harris, Esq., and Meghan Breen, Esq., at Schulte Roth & Zabel LLP. Akin Gump Strauss Hauer & Feld LLP serves as the Debtors' counsel. Rothschild Inc. serves as the Debtors' financial advisors and investment bankers. GCG Inc. serves as the Debtors' claims agent. The United States Trustee said that an official committee under 11 U.S.C. Sec. 1102 has not been appointed in the bankruptcy case of Inner City Media because an insufficient number of persons holding unsecured claims against the Debtor has expressed interest in serving on a committee. INTELLIPHARMACEUTICS: Posts $1.4-Mil. Net Loss in May 31 Quarter ---------------------------------------------------------------- Intellipharmaceutics International Inc. reported a net loss of $1.36 million on $0 revenue for the three months ended May 31, 2012, compared with a net loss of $1.97 million on $0 revenue for the three months ended May 31, 2011. For the six months ended May 31, 2012, the Company reported a net loss of $3.29 million on $107,091 of revenue, compared with a net loss of $4.69 million on $0 revenue for the six months ended May 31, 2011. The Company's balance sheet at May 31, 2012, showed $6.91 million in total assets, $7.26 million in total liabilities, and a stockholders' deficit of $346,055. As reported in the TCR on Feb. 17, 2012, Deloitte & Touche LLP, in Toronto, expressed substantial doubt about Intellipharmaceutics' ability to continue as a going concern, following the Company's results for the fiscal year ended Nov. 30, 2011. The independent auditors noted that of the Company's recurring losses from operations and stockholders' capital deficiency. A copy of the condensed unaudited interim consolidated financial statements is available for free at http://is.gd/UfEgzm A copy of the 2012 Second Quarter Management Discussion and Analysis is available for free at http://is.gd/eB2eS6 About Intellipharmaceutics International Based in Toronto, Canada, Intellipharmaceutics International Inc. (Nasdaq: IPCI) (TSX: I) -- http://www.intellipharmaceutics.com/-- is a pharmaceutical company specializing in the research, development and manufacture of novel and generic controlled- release and targeted-release oral solid dosage drugs. The Company's patented Hypermatrix(TM) technology is a multidimensional controlled-release drug delivery platform that can be applied to the efficient development of a wide range of existing and new pharmaceuticals. Based on this technology, Intellipharmaceutics has a pipeline of product candidates in various stages of development, including six ANDAs under review by the FDA, in therapeutic areas that include neurology, cardiovascular, gastrointestinal tract, diabetes, pain and infection. INTERNATIONAL TEXTILE: Authorized Series A Shares Hiked to 13MM --------------------------------------------------------------- International Textile Group, Inc., filed with the Secretary of State of the State of Delaware a Certificate of Increase relating to its Series A Convertible Preferred Stock. The Certificate, which was effective upon filing, increased the total number of authorized shares of the Company's existing Series A Convertible Preferred Stock from 12,000,000 to 13,000,000 shares. All other terms of the Series A Convertible Preferred Stock remain as currently in effect. About International Textile International Textile Group, Inc., is a global, diversified textile manufacturer headquartered in Greensboro, North Carolina, with current operations principally in the United States, China, Mexico, and Vietnam. ITG's long-term focus includes the realization of the benefits of its global expansion, including reaching full production at ITG facilities in China and Vietnam, and continuing to seek other strategic growth opportunities. The Company reported a net loss of $69.43 million in 2011, compared with a net loss of $46.30 million in 2010. The Company's balance sheet at March 31, 2012, showed $432.77 million in total assets, $630.60 million in total liabilities and a $197.82 million total stockholders' deficit. JOHN D. OIL: Exclusive Plan Filing Period Extended to Sept. 7 ------------------------------------------------------------- The Hon. Thomas P. Agresti of the U.S. Bankruptcy Court for the Western District of Pennsylvania extended the exclusive right of John D. Oil and Gas Company to file a Chapter 11 plan and disclosure statement by 120 days through Sept. 7, 2012; and the exclusive period to obtain acceptance of the plan by 120 days through Nov. 6, 2012. Affiliate Oz Gas has certain oil and gas leaseholds containing approximately 8,000 acres containing both shallow and deep drilling and production rights. Oz Gas owns both the deep and shallow rights through the Leases, but Oz Gas is in the business of exploring, drilling, and managing shallow wells for the production of natural gas and oil. The deep rights have substantial value and those rights are not currently utilized by its operations. Since Oz Gas is able to sell those deep rights without affecting is own operations, a sale of the Subject Interests will provide an undeniable benefit to the Bankruptcy estate. The Debtor's largest creditor and the Committee agree that the proposed sale is the Debtor's best chance to maximize the value of its leasehold interests and achieve a confirmable plan of reorganization. As reported in the Troubled Company Reporter on June 1, 2012, Oz Gas has spent considerable time to seek an offer to sell certain deep drilling rights in the Leases. A meaningful Chapter 11 plan cannot be proposed until the Oz Gas has had sufficient opportunity to propose and consummate a sale of its deep drilling rights. In addition to the sale of certain drilling rights, the Debtor requires additional time to liquidate certain pledged stock. The pledged stock is expected to be liquidated, and will therefore reduce the RBS debt. The sale of the pledged stock and the drilling rights will have substantial effect on the secured debt owed to RBS and a meaningful plan or reorganization cannot be proposed until the remaining RBS debt is determined. About John D. Oil, Great Plains Exploration and Oz Gas Mentor, Ohio-based John D. Oil & Gas Co., is in the business of acquiring, exploring, developing, and producing oil and natural gas in Northeast Ohio. The Company has 58 producing wells. The Company also has one self storage facility located in Painesville, Ohio. The self-storage facility is operated through a partnership agreement between Liberty Self-Stor Ltd. and the Company. John D. Oil's affiliated entities -- Oz Gas, LTD. and Great Plains Exploration LLC -- filed voluntary Chapter 11 petitions (Bankr. W.D. Pa. Case Nos. 12-10057 and 12-10059) on Jan. 11, 2012. Two days later, John D. Oil filed its own Chapter 11 petition (Bankr. W.D. Pa. Case No. 12-10063). On Nov. 21, 2011, at the request of the lender RBS Citizens, N.A., dba Charter One, a receiver was appointed for all three corporate Debtors, in the United States District Court for the Northern District of Ohio at case No. 11-cv-2089-CAB. District Judge Christopher A. Boyko issued an order appointing Mark E. Dottore as receiver. The Receivership Order was appealed to the Sixth Circuit Court of Appeals on Dec. 19, 2011 and the appeal is currently pending. Judge Thomas P. Agresti oversees the Chapter 11 cases. Robert S. Bernstein, Esq., at Bernstein Law Firm P.C., serves as counsel to the Debtors. Each of Great Plains and Oz Gas estimated $10 million to $50 million in assets and debts. John D. Oil's balance sheet at Sept. 30, 2011, showed $8.12 million in total assets, $12.92 million in total liabilities and a $4.79 million total deficit. The petitions were signed by Richard M. Osborne, CEO. The United States Trustee said a committee under 11 U.S.C. Sec. 1102 has not been appointed because no unsecured creditor responded to the U.S. Trustee's communication for service on the committee. LDK SOLAR: Exec. Director Y. Shao Resigns for Personal Reasons -------------------------------------------------------------- LDK Solar Co., Ltd., announced that Mr. Yonggang Shao, an Executive Director and Executive Vice President of Corporate Strategy at LDK Solar, resigned for personal reasons, effective June 30, 2012. Effective immediately, Mr. Shao will serve as Chairman Peng's consultant under a new agreement. The resignation of Mr. Shao does not affect the composition of the Audit, Compensation or Nominating and Corporate Governance Committees of LDK Solar's Board. Mr. Xiaofeng Peng, Chairman and CEO of LDK Solar, stated: "We are grateful to Yonggang Shao for his valuable service during his tenure with the company. We wish him well in his future endeavors. I am confident that Mr. Shao will continue to contribute his expertise to LDK Solar as he switches his role to the Chairman's consultant going forward." About LDK Solar LDK Solar Co., Ltd. -- http://www.ldksolar.com-- based in Hi-Tech Industrial Park, Xinyu City, Jiangxi Province, People's Republic of China, is a vertically integrated manufacturer of photovoltaic products, including high-quality and low-cost polysilicon, solar wafers, cells, modules, systems, power projects and solutions. LDK Solar was incorporated in the Cayman Islands on May 1, 2006, by LDK New Energy, a British Virgin Islands company wholly owned by Xiaofeng Peng, LDK's founder, chairman and chief executive officer, to acquire all of the equity interests in Jiangxi LDK Solar from Suzhou Liouxin Industry Co., Ltd., and Liouxin Industrial Limited. KPMG in Hong Kong, China, said in a May 15, 2012, audit report there is substantial doubt on the ability of LDK Solar Co., Ltd. to continue as a going concern. According to KPMG, LDK Solar has a net working capital deficit and is restricted to incur additional debt as it has not met a financial covenant ratio under a long-term debt agreement as of Dec. 31, 2011. These conditions raise substantial doubt about the Group's ability to continue as a going concern. The Company's balance sheet at March 31, 2012, showed US$6.63 billion in total assets, US$5.96 billion in total liabilities, US$228.21 million in redeemable non-controlling interests and US$447.32 million in total equity. LEE'S FORD DOCK: Files for Chapter 11 in London, Ky --------------------------------------------------- Lee's Ford Dock, Inc., filed a bare-bones Chapter 11 petition (Bankr. E.D. Ky. Case No. 12-60818) in London, Kentucky, estimating assets and liabilities of up to $50 million. The Debtor is represented by Laura Day DelCotto, Esq., at DelCotto Law Group PLLC, in Lexington. Lee's Ford Dock owns the Lee's Ford Resort Marina -- http://www.leesfordmarina.com/-- a recreational marina resort on Lake Cumberland, 3 miles from Somerset, Kentucky. The resort offers world class lodging, lake-front cottages as well as houseboat and vacation rentals. James D. Hamilton, as president, signed the Chapter 11 petition. He may be reached at (606) 636-6426 ext. 234 or jd@leesfordmarina.com LEHMAN BROTHERS: To Reap $1.5-Bil. From Aurora Sale --------------------------------------------------- Lehman Brothers Holdings Inc. said it has sold the assets of its subsidiary, Aurora Bank FSB, to Nationstar Mortgage Holdings Inc. Aurora's $63.7 billion worth of residential mortgage servicing rights has been sold to Nationstar, a company owned by Fortress Investment Group LLC. The deal, which the company said could yield "significant recovery value" for its creditors, also called for the sale of the servicing facility in Scottsbluff, Nebraska, and the transfer of leases of the facilities in Indianapolis and Littleton, Colorado. The sale of Aurora's assets could earn about $1.5 billion for Lehman creditors, according to a report by The Financial Times. Lehman had initially hoped to sell Aurora whole but it eventually decided to break-up the business and sell it off in parts instead. Aurora's commercial mortgage rights were sold to Ocwen Financial while customer deposits were transferred to New York Community Bank, The Financial Times reported. Doug Lambert, managing director of turnaround firm Alvarez & Marsal, said the deal helped Lehman avoid a "potentially costly government resolution" of Aurora and another multi-billion subsidiary, Woodlands Commercial Bank. Shortly after Lehman filed for bankruptcy in 2008, the banks were at risk of being seized and placed into receivership by the Federal Deposit Insurance Corp. The company injected additional cash and liquidity after determining that rescuing the banks and preparing them for a sale would yield more value for creditors. "During the past three and a half years, we successfully oversaw management of the two banks' resolution processes, restoring regulatory capital which allowed the time necessary for the overall financial markets to recover from the economic downturn, averting enormous liability to the Lehman estate," Mr. Lambert said in a statement. Jay Bray, chief executive officer of Nationstar, said the acquisition represents "another exciting milestone in Nationstar's history." "We remain focused on our performance-based servicing model that provides exceptional service and the benefit of Nationstar's extensive resources to help customers achieve and preserve Homeownership," he said in a statement. After the acquisition, Nationstar has grown its servicing book to $177 billion which represents about one million customers, according to Mr. Bray. Aurora will continue to operate and comply with a so-called consent order, which requires the bank to hire independent firms to review its foreclosures. The bank is one of the 14 mortgage servicing companies currently under the consent order from regulators for their foreclosure practices, The Financial Times reported. Fortress' Nationstar Mortgage LLC, meanwhile, is the stalking horse bidder for Residential Capital's mortgage origination and servicing businesses. A full-text copy of the Amended and Restated Asset Purchase Agreement between Nationstar and ResCap, et al., dated June 28, 2012, is available for free at http://bankrupt.com/misc/rescap_june28apa.pdf RESIDENTIAL CAPITAL BANKRUPTCY NEWS tracks the Chapter 11 proceeding undertaken by affiliates of Residential Capital LLC and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. Lehman is set to make its first payment to creditors under its $65 billion payout plan on April 17, 2012. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-700) LEHMAN BROTHERS: JPMorgan Fails to Strike Objection to Claim ------------------------------------------------------------ Judge James Peck of the U.S. Bankruptcy Court in Manhattan denied a motion by JPMorgan Chase & Co. to strike objections to its claims against Lehman Brothers Holdings Inc. Earlier, Lehman and a committee of unsecured creditors proposed to reduce the bank's $6 billion in claims. In response, asked the bankruptcy judge to allow its claims, arguing it acted "in conformity with reasonable commercial practices." JPMorgan filed claims against Lehman and its brokerage in connection with the bank's role as triparty repo custodian during the week of September 15, 2008, when Lehman filed for bankruptcy protection and was negotiating a sale of the brokerage to Barclays Plc. The claims stemmed from the alleged $6.3 billion deficiency following the sale of collateral pledged by the brokerage to secure its debt related to JPMorgan's role as repo custodian. In a July 3 decision, the bankruptcy judge said allowing Lehman and the committee "to continue advancing all points raised in the objection" and to present evidence in support of their objection is "appropriate and does not prejudice JPMorgan." "Granting the motion would not yield any measurable savings of time and expense or help to resolve other issues in dispute," Judge Peck said. He said denial of the motion is procedural and is not an indicator of how the bankruptcy court will decide the "substantive points" raised by JPMorgan. JPMorgan Chase Bank, N.A., asserts that the new arguments made by Lehman Brothers Holdings Inc. and the Official Committee of Unsecured Creditors compound the errors in their Objection. "The Court-approved settlement among JPMorgan, Barclays, and the LBI Trustee in the December Settlement Agreement conferred a benefit on LBHI by paying down the Deficiency Claim by almost $2 billion more than it might have been satisfied absent the settlement. Yet the Objectors simply ignore this pay-down and now contend in their response that the Deficiency Claim should be reduced again by the same amount. Their position is baseless." "Additionally, the Objectors assert that LBI and LBHI are relieved of their contractual obligations to repay JPMorgan's clearance-related advances because JPMorgan received consideration from Barclays in a settlement between JPMorgan and Barclays. Their position again lacks any basis in law or logic: Lehman has made no double payment to JPMorgan; Lehman contributed nothing to the settlement; and the settlement in no way diminished the Lehman estates. Moreover, although there is no reason to believe that JPMorgan will ever recover more than what it is owed on its clearance-related claims, any conceivable "excess" payment would come solely from Barclays, not from Lehman. Lehman has never been at risk of paying more than 100% of what it owes JPMorgan -- and it never will be," JPMorgan pointed out. "Lehman's attempt to defeat JPMorgan's claim for interest is also untenable. Section 506(b) of the Bankruptcy Code establishes a right to postpetition interest, which the Supreme Court has repeatedly declared is "unqualified." The only way to re-write the statute to include the Objectors' so-called "equitable considerations" is to ignore both the express language of Section 506(b) and the Supreme Court's clear mandate. Far from offering any justification for taking that extraordinary step, the Objectors would have the Court declare that postpetition interest must always be denied to a bank or other creditor secured by cash whenever the creditor can invest that cash. They cite no authority whatever for this entirely unprecedented and unwarranted rule," JPMorgan adds. Emil A. Kleinhaus, Esq., a partner at the law firm of Wachtell, Lipton, Rosen & Katz, filed a Supplemental Declaration in Support of JPMorgan Chase Bank, N.A.'s Motion to Strike. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. Lehman is set to make its first payment to creditors under its $65 billion payout plan on April 17, 2012. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-700) LEHMAN BROTHERS: Elliot Demands $3.2-Bil. Payment to Creditors -------------------------------------------------------------- Elliott Management Corp. demanded that the trustee liquidating Lehman Brothers Holdings Inc.'s brokerage make an initial payment of $3.2 billion to creditors, Bloomberg News reported. Elliott, a hedge fund client of the Lehman brokerage, wants the biggest possible payout promptly after the trustee has sold securities owned by the brokerage, the report said. Peter Truell, an Elliott spokesman, would not say how much the hedge fund firm is claiming from the brokerage, Bloomberg reported. Shortly after Lehman filed for bankruptcy protection, the trustee transferred 110,000 mostly retail Lehman accounts containing $90 billion in assets largely to Barclays. Elliott and other customers, however, "were not fortunate enough to participate in that process," the hedge fund said. Elliot said the trustee could pay almost 26 cents on the dollar of allowed claims totaling $12.2 billion, while still reserving enough money for disputed claims. A 26% payout by the brokerage would dwarf Lehman parent's first distribution of 2 cents on the dollar to 6 cents excluding subordinated claims, the hedge fund said. Jake Sargent, Lehman trustee's spokesman, said the "remaining claims are few in number and relate to Lehman affiliates, large banks and hedge funds," and that the trustee is "urgently addressing the significant hurdles that stand in the way" of paying them, Bloomberg News reported. The trustee had said in December that he planned to start paying the Lehman brokerage's remaining customers soon from available assets of $18.3 billion. He did not say how much money customers can expect only that his goal was to make "a significant" payment, Bloomberg News reported. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. Lehman is set to make its first payment to creditors under its $65 billion payout plan on April 17, 2012. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-700) LEHMAN BROTHERS: LBI Trustee Seeks to Sell Invicta Notes -------------------------------------------------------- James W. Giddens, as trustee for the liquidation of Lehman Brothers Inc. under the Securities Investor Protection Act, asks the Court to approve a repurchase agreement governing the repurchase by Invicta Capital LLC of $65 million of Invicta Subordinated Deferrable Interest Floating Rate Notes due 2036, Series B, held by LBI. The LBI Trustee intends to sell the Invicta Notes to Invicta for $56,875,000. The Trustee has determined that the proposed transaction is in the best interest of the estate, its customers and creditors. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. Lehman is set to make its first payment to creditors under its $65 billion payout plan on April 17, 2012. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-700) LEHMAN BROTHERS: Seeks Revision of Claims Resolution Orders ----------------------------------------------------------- Lehman Brothers Holdings Inc. asked Judge James Peck to revise six of his previous orders, which approved a mechanism for resolving claims filed in its bankruptcy case. The court orders remain operative and important in the implementation of Lehman's Chapter 11 plan but require revision in light of the change in status of the committee representing the company's unsecured creditors. Under the bankruptcy plan, the unsecured creditors committee was dissolved "for all purposes" other than implementation of the plan through the date of the initial payment to creditors. The plan, however, permits the involvement of the group's subcommittees in resolving derivatives-related claims and other lawsuits. Earlier, the subcommittees and Lehman reached an agreement concerning the former's participation in the settlement of those lawsuits. Lehman said the bankruptcy judge's prior orders must be revised to reflect the terms of those agreements. The proposed changes to the court orders are detailed in the proposed order, a copy of which is available for free at http://bankrupt.com/misc/LBHI_PropOrderReviseOrders.pdf A court hearing is scheduled for July 18. Objections are due by July 11. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. Lehman is set to make its first payment to creditors under its $65 billion payout plan on April 17, 2012. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on Sept. 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on Sept. 16. Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33 billion) in liabilities in its petition. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-700) LIBERTY FLAG: $272,000 Judgment Prompts Chapter 11 Filing --------------------------------------------------------- Liberty Flag & Specialty Co., Inc., a flag supplier in southwestern Wisconsin, sought Chapter 11 bankruptcy protection (Bankr. W.D. Wis. Case No. 12-13672) on June 25, 2012, listing assets of less than $50,000 against debts of $500,000 to $1 million. Craig E. Stevenson, Esq., at Krekeler Strother, S.C., serves as the Debtor's counsel. A copy of the bankruptcy petition is available at no charge at http://bankrupt.com/misc/wiwb12-13672.pdf Katy Stech at Bankruptcy Beat reports that the Debtor immediately sought court permission to spend the money that it had promised to set aside for its lender, Community First Bank, to continue its operations. Rick Romell at the Journal Sentinel reports that Liberty Flag's largest unsecured creditor is Eder Flag Manufacturing Co., which has said it supplied millions of dollars worth of goods to Liberty since 1984. According to the report, the long relationship began to fray in 2010, when Liberty started to fall behind on payments and some of its checks bounced, Eder Flag said in a lawsuit in Milwaukee County Circuit Court. The Journal Sentinel report notes Eder Flag filed the action last September. On June 20, the Oak Creek company won a $272,000 judgment against Liberty, which failed to appear in court for a scheduled hearing. The Journal Sentinel report adds the Chapter 11 case is the second in less than a year involving Liberty partners David J. Gonzalez - - who started selling flags door to door 30 years ago -- and his wife Kathleen. Last November, the Gonzalezes' Mountain Faith Church Inc., Lake Delton, also filed for bankruptcy protection from creditors. The Journal Sentinel report says, similar to the latest case, that filing came about two weeks after a lender, BMO Harris Bank, won an $856,000 foreclosure judgment connected to mortgages on the church property. Saying the church went into bankruptcy only to forestall foreclosure, the bank successfully asked that the case be dismissed. According to the report, within a week of the dismissal, however, the bank and church reached an agreement on the foreclosure action, and the $856,000 judgment was vacated, online court records show. David Gonzalez is pastor of Mountain Faith Church. The report says a document filed by the church in bankruptcy court lists David and Kathleen Gonzalez each as a 50% shareholder in Mountain Faith Church Inc. The Gonzalezes, however, have turned to a donation Web site, Gofundme.com, in hopes of raising $500,000. On a page titled "Help Save Liberty Flag & Spec. Co.," Mr. Gonzalez said foreign competition and tight credit have hurt the business. LSP ENERGY: Withdraws Plea to Hire PA Consulting as Energy Expert ----------------------------------------------------------------- LSP Energy Limited Partnership, et al., through Whiteford Taylor Preston LLC, notifies the U.S. Bankruptcy Court for the District of Delaware that it has withdrawn its application to employ PA Consulting Group, Inc., as independent energy expert advisor, nunc pro tunc to April 1, 2012. As reported in the Troubled Company Reporter on June 11, 2012, the Debtor proposed to hire PA Consulting to, among other things, provide on-going support to the Debtors, in their current and ongoing capacities, through activities like assessing the mark-to- market of certain power off-take agreements. About LSP Energy LSP Energy Limited Partnership, LSP Energy, Inc., LSP Batesville Holding, LLC, and LSP Batesville Funding Corporation filed separate Chapter 11 bankruptcy petitions (Bankr. D. Del. Lead Case No. 12-10460) on Feb. 10, 2012. LSP owns and operates an electric generation facility located in Batesville, Mississippi. The Facility consists of three gas-fired combined cycle electric generators with a total generating capacity of roughly 837 megawatts and is electrically interconnected into the Entergy and Tennessee Valley Authority transmission systems. LSP's principal assets are the Facility and the 58-acre parcel of real property on which it is located, as well as its rights under a tolling agreements. LSP filed bankruptcy to complete an orderly sale of its assets or the ownership interests of LSP Holding in LSP, LSP Energy and LSP Funding for the benefit of all stakeholders. The remaining three Debtors filed bankruptcy due to their relationship as affiliates of LSP and their ultimate obligations on a significant portion of LSP's secured bond debt. The Debtors also suffered losses due to a mechanical failure of a combustion turbine at their facility and resultant business interruption. LSP Energy is the general partner of LSP. LSP Holding is the limited partner of LSP and the 100% equity holder of LSP Energy and LSP Funding. LSP Funding is a co-obligor on the Debtors' bond debt, and each of LSP Energy and LSP Holding has pledged their equity interests in LSP and LSP Funding as collateral for the bond debt. No statutorily authorized creditors' committee has yet been appointed in the Debtors' cases by the United States Trustee. Judge Mary F. Walrath oversees the case. Lawyers at Whiteford Taylor & Preston LLC serve as the Debtors' counsel. M WAIKIKI: Marriott Settles With Modern Honolulu Hotel Over Plan ---------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that owners of the 353-room Modern Honolulu hotel reached a settlement with Marriott International Inc. that may result in approval of a newly revised reorganization plan as soon as July 10, when the confirmation hearing resumes. The report recounts that the hotel and Marriott, the former manager of the property, have been embroiled in lawsuits since before the Chapter 11 reorganization began in August 2011 and have filed competing reorganization plans. According to the report, the settlement agreement calls for a cash payment to Marriott no later than July 30 in satisfaction of its secured and unsecured claims. The amount of the payment isn't disclosed in court filings. In return for the cash, Marriott is withdrawing its opposition to the hotel's plan that was revised this week to comport with the settlement. The settlement, Mr. Rochelle points out, may have been the indirect result of a ruling by the bankruptcy judge about a month ago that $18.5 million was owing to Marriott as a result of termination of the contract for management of the property. Marriott called the ruling a "significant victory," even though it originally was seeking $72 million. The report notes that U.S. Bankruptcy Judge Robert J. Faris in Honolulu hadn't yet ruled on whether the hotel would have claims of its own for the manager's breach or failure to perform properly. The trial or estimation of the owners' claims was taking place this month. The owner's plan calls for paying unsecured creditors in full, with interest. The plan allows the Davidson Family Trust from Incline Village, Nevada, to retain ownership in return for a $32.2 million cash contribution, plus the amount necessary to pay the Marriott settlement. About M Waikiki M Waikiki owns the Modern Honolulu, a world-class, luxury hotel property located close to Waikiki Beach in Hawaii. The hotel is being managed by Modern Management Services LLC, an affiliate of Aqua Hotels and Resorts. M Waikiki is a Hawaii limited liability company with its principal place of business located in San Diego, California. It is a special purpose entity, having roughly 75 indirect investors, which was formed to acquire the Hotel. The Company filed for Chapter 11 protection (Bankr. D. Hawaii Case No. 11-02371) on Aug. 31, 2011. Judge Robert J. Faris presides over the case. Patrick J. Neligan, Esq., and James P. Muenker, Esq., at Neligan Foley LLP, in Dallas, Tex.; Simon Klevansky, Esq., at Klevansky Piper, LLP, in Honolulu, Hawaii, are the attorneys to the Debtor. Bickel & Brewer serves as special litigation counsel. The Debtor tapped XRoads Solutions Group, LLC, and Xroads Case Management Services, LLC, as its financial and restructuring advisor. The Debtor disclosed $216,116,142 in assets and $135,085,843 in liabilities as of the Chapter 11 filing. Modern Management is represented by Christopher J. Muzzi, Esq., at Moseley Biehl Tsugawa Lau & Muzzi LLC. Marriott Hotel Services, which used to provide management services, is represented by Susan Tius, Esq., at Rush Moore LLP LLP, and Carren B. Shulman, Esq., at Sheppard Mullin Richter & Hampton LLP. James A. Wagner, Esq., and Chuck C. Choi, Esq., at Wagner Choi & Verbrugge, in Honolulu, serve as bankruptcy counsel for the Creditors' Committee. MARIANA RETIREMENT: Counsel Says Chapter 11 Talks Started in 2011 ----------------------------------------------------------------- Ferdie de la Torre, reporter at Saipan Tribune, notes the counsel for the NMI Retirement Fund has disclosed that the Chapter 11 bankruptcy filing was already being talked about with the Fund's outside counsel, Braddock Huesman, Esq., since September 2011. The report saysthe filing surprised many CNMI government officials and lawmakers as well as Fund retirees and members. According to the report, attorney Jeremy B. Coffey, one of the partners for the law firm Brown Rudnick LLP, said the Fund turned its consideration to restructuring its obligations through a proceeding under Chapter 11 of the Bankruptcy Code after exploring and exhausting all other options. Mr. Coffey said the Fund then contacted their law firm in Boston in September 2011 to discuss the implications of a potential Chapter 11 filing. The report adds the Fund has repeatedly announced that its assets will be depleted by July 2014. The report relates Mr. Coffey said given the many unusual aspects of the Fund and its obligations, the prospect of a Chapter 11 filing raised numerous novel, complex issues to be considered. He said their law firm researched relevant issues and participated in many conference calls with the Fund and its outside counsel, Mr. Huesman. Mr. Coffey claimed that between September 2011 and March 2012, their law firm provided the Fund services with an approximate value of $187,000 yet they did not charge the Fund for these services. Once the Fund made the decision to pursue Chapter 11 petition, Mr. Coffey said, their law firm and the Fund agreed on a discounted rate structure. Under the agreement, Mr. Coffey said, their attorneys whose hourly rates range from $325 to $955, would all be filled at a flat "blended rate" of $475 per hour. About NMI Retirement Fund The Northern Mariana Islands Retirement Fund -- http://www.nmiretirement.com/-- is a public corporation of the Commonwealth of the Northern Mariana Islands that receives and invests retirement contributions and pays certain benefits to or on account of certain retirees of the Commonwealth government, their survivors, and certain disabled persons. The Fund, through its administrator Richard Villagomez, filed a Chapter 11 bankruptcy petition in the U.S. District Court for the Northern District of Mariana Islands in Saipan (Case No. 12-00003) on April 17, 2012. The Fund is represented by Brown Rudnick LLP and the Law Office of Braddock J. Huesman, LLC. The Fund said in court papers that the Chapter 11 filing was precipitated by the discrepancy between the Debtor's current ability to pay benefits to beneficiaries and the Debtor's current obligations to those same beneficiaries. The Fund said it would exhaust its cash by July 2014. It has been unable to collect a $325 million judgment against the islands' government, and the commonwealth decided to reduce contributions toward workers' pensions. As a result of continuous underfunding, which necessitated withdrawing from its portfolio to cover funding shortfalls, the value of the Fund's assets has fallen from $353,475,412 in 2009 to its current level of $268,448,997, the Debtor's counsel has said. The counsel also said the Fund is subject to liabilities (both current and actuarial) totaling about $911 million. An official committee of unsecured creditors, consisting of Fund members, has been appointed in the case. U.S. Bankruptcy Judge Robert J. Faris held a hearing on June 1, 2012, where he said from the bench that the fund isn't eligible for Chapter 11 because it's an agent of the commonwealth government. The judge, however, said he won't formally dismiss the case until July or August. MEDIA GENERAL: Closes $142MM Sale of Newspapers to World Media -------------------------------------------------------------- Media General, Inc., completed the sale of all of its newspapers, with the exception of its group of newspapers in and around Tampa, Florida, to World Media Enterprises Inc. for $142 million in cash subject to adjustment for working capital and other items. The Company retained the previously frozen pension assets and liabilities and post-retirement obligations related to employees of the businesses that were sold. The newspapers purchased by World Media include 63 daily and weekly titles in Virginia, North Carolina, South Carolina and Alabama. The Company expects to record an after-tax loss on the sale of newspapers to World Media in the range of $105-115 million in the second quarter of 2012. After transaction fees and the repayment of funds drawn on the revolving credit facility, the Company intends to use the net proceeds from the newspaper sale to offer to repay on a pro rata basis the existing senior secured notes and its term loan at par with no prepayment penalty. A copy of the Form 8-K disclosure is available for free at: http://is.gd/BrLwRb About Media General Richmond, Virginia-based Media General Inc. (NYSE: MEG) -- http://www.mediageneral.com/-- is an independent communications company with interests in newspapers, television stations and interactive media in the United States. The Company reported a net loss of $74.32 million for the fiscal year ended Dec. 25, 2011, a net loss of $22.64 million for the fiscal year ended Dec. 26, 2010, and a net loss of $35.76 million for the fiscal year ended Dec. 27, 2009. The Company's balance sheet at March 25, 2012, showed $1.04 billion in total assets, $1.04 billion in total liabilities, and $17,000 in total stockholders' equity. * * * As reported by the Troubled Company Reporter on April 12, 2012, Moody's Investors Service downgraded, among other things, Media General's Corporate Family Rating (CFR) and Probability of Default Rating (PDR) to Caa1 from B3, concluding the review for downgrade initiated on Feb. 13, 2012. The downgrade reflects the significant increase in interest expense associated with the company's credit facility amend and extend transaction and an assumed issuance of at least $225 million of new notes, which will result in limited free cash flow generation and constrain Media General's capacity to reduce its very high leverage. The weak free cash flow and high leverage create vulnerability to changes in the company's highly cyclical revenue and EBITDA generation. In the May 23, 2012, edition of the TCR, Standard & Poor's Ratings Services placed its 'CCC+' corporate credit rating on Richmond, Va.-headquartered Media General Inc., along with its 'CCC+' issue- level rating on the company's senior secured notes, on CreditWatch with positive implications. "The CreditWatch placement is based on Media General's agreement to sell the majority of its newspaper assets to BH Media Group, a subsidiary of Berkshire Hathaway Inc. The CreditWatch also reflects the announcement that the company will refinance its existing bank debt due in March 2013. It expects to close the refinancing transaction next week and the newspaper sale by June 25, 2012," S&P said. METRO TOWER: Files for Chapter 11 to Avoid Foreclosure ------------------------------------------------------ Brandon Carpenter at Connect Amarillo reports that Metro Tower Fund LLC, which owns the Barfield Building at 600 S. Polk St., has filed Chapter 11 bankruptcy protection. According to the report, the Company's building was set to be auctioned off in a sheriff's sale because of a foreclosure in the amount of $320,000 made by the LT Barfield, LLC., that has a lien on the build. Managing Partner Todd Harmon said he plans on to hang on the property. The property is a prime spot at the corner of Polk & 6th Avenue. The report says Metro Tower and Mr. Harmon have made repeated attempts to restore the building. But have suffered financial collapses and judgments made against the company. LT Barfield, LLC is owned in part by partners Joe Bob McCartt, Alan Rhodes, James W. Wester, Pedro Cunha and Kathy Cornett along with others. The report notes Metro Tower estimated project cost was $7 million. Potter-Randall appraisal district lists the value of the Barfield at $228,395. MPG OFFICE: To Issue 724,264 Shares Under 2003 Incentive Plan ------------------------------------------------------------- MPG Office Trust, Inc., filed with the U.S. Securities and Exchange Commission a Form S-8 registering 724,264 shares of common stock issuable under the Company's Second Amended and Restated 2003 Incentive Award Plan. The proposed maximum aggregate offering price is $1.45 million. A copy of the filing is available for free at http://is.gd/MTpV2R 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. MMRGLOBAL INC: Terminates Investment Agreement with Dutchess ------------------------------------------------------------ MMRGlobal, Inc., signed a notice of cancellation for the purposes of terminating the Investment Agreement, dated Sept. 15, 2009, by and between MMRGlobal and Dutchess Opportunity Fund, II, LP f/k/a Dutchess Equity Fund, LP. The notice was given pursuant to Section 9 of the Investment Agreement, which allows termination of the Agreement upon written notice from the Company to Dutchess. Pursuant to Section 9, the Company requested to terminate the Investment Agreement effective at 5:00pm EST on June 27, 2012. The notice of cancellation was received by Dutchess on June 28, 2012. The Company will not incur any early termination fees in connection with the termination of the Investment Agreement. About MMRGlobal Los Angeles, Calif.-based MMR Global, Inc. (OTC BB: MMRF) -- http://www.mmrglobal.com/-- through its wholly-owned operating subsidiary, MyMedicalRecords, Inc., provides secure and easy-to- use online Personal Health Records (PHRs) and electronic safe deposit box storage solutions, serving consumers, healthcare professionals, employers, insurance companies, financial institutions, and professional organizations and affinity groups. In the auditors' report accompanying the financial statements for year ended Dec. 31, 2011, Rose, Snyder & Jacobs LLP, in Encino, California, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant operating losses and negative cash flows from operations during the years ended Dec. 31, 2011, and 2010. The Company reported a net loss of $8.88 million in 2011, compared with a net loss of $17.90 million in 2010. The Company reported a net loss of $10.3 million in 2009. The Company's balance sheet at March 31, 2012, showed $1.90 million in total assets, $7.96 million in total liabilities, and a $6.05 million stockholders' deficit. MORGAN INDUSTRIES: Files Schedules of Assets and Liabilities ------------------------------------------------------------ Morgan Industries Corporation filed with the U.S. Bankruptcy Court for the District of New Jersey its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $10,939,834 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $13,352,453 E. Creditors Holding Unsecured Priority Claims $7,313 F. Creditors Holding Unsecured Non-priority Claims $13,792,984 ----------- ----------- TOTAL $$10,939,834 $27,152,750 A full-text copy of the schedules are available for free at: http://bankrupt.com/misc/MORGAN_INDUSTRIES_sal.pdf About Morgan Industries Morgan Industries Corporation, along with affiliates, sought Chapter 11 protection (Bankr. D. N.J. Lead Case No. 12-21156) in Trenton, New Jersey, on April 30, 2012. Affiliates that filed separate bankruptcy petitions are Hunter Composite Technologies Corporation; Hunter Marine Corporation; Luhrs Corporation; Mainship Corporation; Ovation Yachts Corporation; Salisbury 10 Acres, L.L.C.; Salisbury 20 Acres, L.L.C.; and Silverton Marine Corporation. The Debtors, through their trade name the Luhrs Marine Group, produce and sell recreational powerboats and sailboats under the iconic brand names of Silverton, Ovation, Luhrs, Mainship, and Hunter Marine. In 2010, Silverton, Mainship and Luhrs, collectively, held roughly 5.3% of the U.S. market for fiberglass, in-board engine powerboats greater than 27 feet in length. Additionally, Hunter Marine was the largest manufacturer of sailboats in the U.S., accounting for an estimated 32% of new sailboat registrations in 2010, making it the sixth consecutive year Hunter Marine represented roughly 30% of all new sailboat registrations in the U.S. The Debtors have a network of 90 dealers in the U.S. and 80 dealers in 40 other countries. Judge Michael B. Kaplan oversees the case. Robert Hirsh, Esq., and George Angelich, Esq., at Arent Fox LLP serve as bankruptcy general counsel to the Debtors; Capstone Advisory Group, LLC, acts as financial advisors; Katz, Kane & Co. as investment bankers; and Donlin Recano & Company, Inc. as claims agent. In their petition, the Debtors disclosed $53 million in total assets and $80 million in total liabilities. The petitions were signed by John T. Peterson, treasurer. Stuart M. Brown, Esq., at DLA Piper LLP (US), represents primary lender Bank of America N.A. The Official Committee of Unsecured Creditors is represented by Lowenstein Sandler PC. NEW WESTERN ENERGY: Posts $105,900 Net Loss in Q2 2012 ------------------------------------------------------ New Western Energy Corp. filed its quarterly report on Form 10-Q, reporting a net loss of $105,893 on $36,479 of revenues for the three months ended March 31, 2012, compared with a net loss of $77,756 on no revenues for the same period last year. The Company's balance sheet at March 31, 2012, showed $1,166,617 in total assets, $320,327 in total liabilities, and stockholders' equity of $846,290. Salberg & Company, P.A., in Boca Raton, Florida, expressed substantial doubt about New Western Energy's ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 31, 2011. The independent auditors noted that the Company has a net loss and net cash used in operating activities in 2011 of $378,453 and $328,965, respectively, and has working capital deficit and an accumulated deficit of $109,669 and $1,415,600, respectively at Dec. 31, 2011. A copy of the Form 10-Q is available for free at: http://is.gd/eteO8w Irvine, Calif.-based New Western Energy Corporation is an oil and gas and mineral exploration and production company with current projects located in Kansa, Oklahoma and Texas. The Company's principal business is in the acquisition, exploration and development of, and production from oil, gas and mineral properties. NEWPAGE CORP: Says Lenders Not Interested in Verso's Offer ---------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that NewPage Corp. said in a July 3 statement that its first-lien lenders don't support an acquisition by Verso Paper Corp., the second-largest coated paper maker in the U.S. Consequently, NewPage said it "does not anticipate further discussions" regarding the $1.425 billion offer Verso made to first-lien creditors. The report relates that at a hearing in June, the bankruptcy court granted NewPage an extension until Sept. 1 of the exclusive right to propose a reorganization plan. About NewPage Corp Headquartered in Miamisburg, Ohio, NewPage Corporation was the leading producer of printing and specialty papers in North America, based on production capacity, with $3.6 billion in net sales for the year ended Dec. 31, 2010. 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. NewPage originally engaged Dewey & LeBoeuf LLP as general bankruptcy counsel. In May 2012, Dewey dissolved and commenced its own Chapter 11 case. Dewey's restructuring group led by Martin J. Bienenstock, Esq., Judy G.Z. Liu, Esq., and Philip M. Abelson, Esq., moved to Proskauer Rose LLP. In June, NewPage sought to hire Proskauer as replacement counsel. NewPage is also represented by Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, 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, NewPage 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 CORP: Court OKs Extension of PwC's Scope of Retention ------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized NewPage Corporation, et al., to expand the scope of PriceWaterhouseCoopers LLP's employment in relation to the audit of the Debtors' 2012 financials. As reported in the Troubled Company Reporter on May 25, 2012, on Nov. 9, 2011, the Court issued an order approving PwC's employment. On Dec. 20, the Court entered an amended order reflecting certain language that was erroneously omitted from the retention order. The Debtors anticipated that they will incur fees of approximately $1,226,500 in respect of the additional services. The estimate does not include certain non-recurring audit work that will be required in conjunction with the (i) debtor-in-possession procedures, including design of nd testing the operating effectiveness of management's control over liabilities subject to compromise balances, charges recorded in the reorganization line item, etc; (ii) procedures associated with emerging from bankruptcy; (iii) accounting and auditing matters which may arise from non-routine events, transactions, and activities. Fees arising from non-recurring audit work are estimated to be approximately $100,000 if the Debtors do not emerge from the Chapter 11 cases in 2012, and approximately $1,175,000 if they do emerge from the Chapter 11 cases in 2012. A full-text copy of the additional terms of PwC's employment is available for free at: http://bankrupt.com/misc/NEWPAGECORPORATION_pwc.pdf About NewPage Corp Headquartered in Miamisburg, Ohio, NewPage Corporation was the leading producer of printing and specialty papers in North America, based on production capacity, with $3.6 billion in net sales for the year ended Dec. 31, 2010. 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. NewPage originally engaged Dewey & LeBoeuf LLP as general bankruptcy counsel. In May 2012, Dewey dissolved and commenced its own Chapter 11 case. Dewey's restructuring group led by Martin J. Bienenstock, Esq., Judy G.Z. Liu, Esq., and Philip M. Abelson, Esq., moved to Proskauer Rose LLP. In June, NewPage sought to hire Proskauer as replacement counsel. NewPage is also represented by Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, 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, NewPage 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 CORP: Quinn Emanuel Approved as Panel's Conflicts Counsel ----------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized the Official Committee of Unsecured Creditors in the Chapter 11 cases of Newpage Corporation, et al., to retain Quinn Emanuel Urquhart & Sullivan, LLP, as its conflicts counsel. As reported in the Troubled Company Reporter on May 25, 2012, Quinn Emanuel will represent the Committee in matters in which the Committee's primary counsel, Paul Hastings has a conflict. The hourly rates of Quinn Emanuel's personnel are: Partners $810 - $1,075 Attorneys/Counsel $320 - $900 Legal Assistants $290 - $350 To the best of the Committee's knowledge, Quinn Emanuel does not hold or represent any interest adverse to the estate. About NewPage Corp Headquartered in Miamisburg, Ohio, NewPage Corporation was the leading producer of printing and specialty papers in North America, based on production capacity, with $3.6 billion in net sales for the year ended Dec. 31, 2010. 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. NewPage originally engaged Dewey & LeBoeuf LLP as general bankruptcy counsel. In May 2012, Dewey dissolved and commenced its own Chapter 11 case. Dewey's restructuring group led by Martin J. Bienenstock, Esq., Judy G.Z. Liu, Esq., and Philip M. Abelson, Esq., moved to Proskauer Rose LLP. In June, NewPage sought to hire Proskauer as replacement counsel. NewPage is also represented by Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, 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, NewPage 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. PACIFIC MONARCH: July 12 Hearing on Exclusivity Extension --------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California will convene a hearing on July 12, 2012, at 10 a.m., to consider Pacific Monarch Resorts, Inc., et al.'s request for exclusivity extensions. The Debtors requested that the Court extend its exclusive periods to file and solicit acceptances for the proposed chapter 11 plan until July 30, and Oct. 25, respectively. The Debtors explained that they needed additional time to fully resolve certain unsettled issues in connection with their chapter 11 plan. Some of the issues include (i) transition services; and (ii) complex Mexican and US tax and regulatory laws, and must be addressed by multiple parties involved prior to their final resolution. Moreover, the Debtors believe it is in the best interests of the Debtors' estates to obtain comments from certain key parties-in- interest prior to the filing of any plan. About Pacific Monarch Pacific Monarch Resorts, Inc., and its affiliated debtors operate a "timeshare business" business. The Debtors filed voluntary Chapter 11 petitions (Bankr. C.D. Calif. Lead Case No. 11-24720) on Oct. 24, 2011, disclosing $100 million to $500 million in both assets and debts. The affiliated debtors are Vacation Interval Realty Inc., Vacation Marketing Group Inc., MGV Cabo LLC, Desarrollo Cabo Azul, S. de R.L. de C.V., and Operadora MGVM S. de R.L. de C.V. Based in Laguna Hills, California, Pacific Monarch and its affiliates generate revenue primarily from the sale and financing of "vacation ownership points" in a timeshare program commonly known and marketed as "Monarch Grand Vacations," a multi-location vacation timeshare program that establishes a uniform plan for the development, ownership, use and enjoyment of specified resort accommodations for the benefit of its members. MGV is a nonprofit mutual benefit corporation whose members are timeshare owners, and it is administered by a board of directors elected by MGV members. As of the Petition Date, MGV owned Resort Accommodations within these resorts: Palm Canyon Resort (Palm Springs), Riviera Oaks Resort & Racquet Club (Ramona), Riviera Beach & Spa Resort - Phases I and II (Dana Point), Riviera Shores Beach (Dana Point), Cedar Breaks Lodge (Brian Head), Tahoe Seasons Resort (South Lake Tahoe), Desert Isle of Palm Springs (Palm Springs), the Cancun Resort (Las Vegas), and the Cabo Azul Resort (Los Cabos, Mexico). Future Vacation Accommodations are currently in the pre- development stage in Kona, Hawaii and Las Vegas, Nevada. Additionally, the Cabo Azul Resort has construction in progress on two buildings. The Pacific Monarch entities do not include the entities that actually own the timeshare properties that have been dedicated to use by the purchasers of timeshare points. The trusts that own the properties are not liable for the Pacific Monarch entities' obligations. MGV is not a debtor. Judge Erithe A. Smith presides over the jointly administered cases. Lawyers at Stutman, Treister & Glatt PC, in Los Angeles, serve as counsel to the Debtors. The petition was signed by Mark D. Post, chief executive officer and director. Houlihan Lokey Capital, Inc., serves as investment baker to the Debtors. Raymond J. Gaskill, Esq., represents the Debtors as special timeshare counsel. Greenberg, Whitcombe & Takeuchi, LLP, serves as the Debtors' special counsel for employment and labor matters. Lesley, Thomas, Schwarz & Postma, Inc., serves as the Debtors' tax and vacation ownership points accountants. White & Case LLP is the Debtors' special tax counsel. Attorneys at Brinkman Portillo Ronk, PC, serve as counsel to the Official Committee of Unsecured Creditors. Creditor Ikon Financial Services is represented by Christine R. Etheridge. Creditor California Bank & Trust is represented in the case by Michael G. Fletcher at Frandzel Robins Bloom & Csato, L.C. Marshall F. Goldberg, Esq. at Glass & Goldberg argues for creditor Fifth Third Bank. Creditor The Macerich Company is represented by Brian D. Huben, Esq. at Katten Muchin Rosenman LLP. Interested Party DPM Acquisition is represented by Joshua D. Wayser, Esq. at Katten Muchin Rosenman LLP. PACIFIC MONARCH: Taps Gibson Dunn and ST&G as Bankruptcy Counsel ----------------------------------------------------------------- Pacific Monarch Resorts, Inc., et al., ask the U.S. Bankruptcy Court for the Central District of California for permission to employ Gibson, Dunn & Crutcher, LLP, jointly with Stutman, Treister & Glatt P.C., as their general reorganization counsel. The Debtors relate that on May 24, 2012, Jeffrey C. Krause joined Gibson Dunn's Los Angeles office as partner in the firm's Business Restructuring and Reorganization Practice Group. Prior to joining Gibson Dunn, Mr. Krause was a senior shareholder of ST&G, the Debtors' general reorganization counsel. Given Mr. Krause's integral role in the cases, the Debtors seek to employ Gibson Dunn as joint general reorganization counsel with ST&G. Subject to Court's approval, Mr. Krause will continue to coordinate workflows among Gibson and ST&G to avoid duplication of their respective services. Gibson Dunns' legal fees are at varying rates ranging from $395 to $1,075 for attorneys. To the best of the Debtors' knowledge, Gibson Dunn is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Pacific Monarch Pacific Monarch Resorts, Inc., and its affiliated debtors operate a "timeshare business" business. The Debtors filed voluntary Chapter 11 petitions (Bankr. C.D. Calif. Lead Case No. 11-24720) on Oct. 24, 2011, disclosing $100 million to $500 million in both assets and debts. The affiliated debtors are Vacation Interval Realty Inc., Vacation Marketing Group Inc., MGV Cabo LLC, Desarrollo Cabo Azul, S. de R.L. de C.V., and Operadora MGVM S. de R.L. de C.V. Based in Laguna Hills, California, Pacific Monarch and its affiliates generate revenue primarily from the sale and financing of "vacation ownership points" in a timeshare program commonly known and marketed as "Monarch Grand Vacations," a multi-location vacation timeshare program that establishes a uniform plan for the development, ownership, use and enjoyment of specified resort accommodations for the benefit of its members. MGV is a nonprofit mutual benefit corporation whose members are timeshare owners, and it is administered by a board of directors elected by MGV members. As of the Petition Date, MGV owned Resort Accommodations within these resorts: Palm Canyon Resort (Palm Springs), Riviera Oaks Resort & Racquet Club (Ramona), Riviera Beach & Spa Resort - Phases I and II (Dana Point), Riviera Shores Beach (Dana Point), Cedar Breaks Lodge (Brian Head), Tahoe Seasons Resort (South Lake Tahoe), Desert Isle of Palm Springs (Palm Springs), the Cancun Resort (Las Vegas), and the Cabo Azul Resort (Los Cabos, Mexico). Future Vacation Accommodations are currently in the pre- development stage in Kona, Hawaii and Las Vegas, Nevada. Additionally, the Cabo Azul Resort has construction in progress on two buildings. The Pacific Monarch entities do not include the entities that actually own the timeshare properties that have been dedicated to use by the purchasers of timeshare points. The trusts that own the properties are not liable for the Pacific Monarch entities' obligations. MGV is not a debtor. Judge Erithe A. Smith presides over the jointly administered cases. Lawyers at Stutman, Treister & Glatt PC, in Los Angeles, serve as counsel to the Debtors. The petition was signed by Mark D. Post, chief executive officer and director. Houlihan Lokey Capital, Inc., serves as investment baker to the Debtors. Raymond J. Gaskill, Esq., represents the Debtors as special timeshare counsel. Greenberg, Whitcombe & Takeuchi, LLP, serves as the Debtors' special counsel for employment and labor matters. Lesley, Thomas, Schwarz & Postma, Inc., serves as the Debtors' tax and vacation ownership points accountants. White & Case LLP is the Debtors' special tax counsel. Attorneys at Brinkman Portillo Ronk, PC, serve as counsel to the Official Committee of Unsecured Creditors. Creditor Ikon Financial Services is represented by Christine R. Etheridge. Creditor California Bank & Trust is represented in the case by Michael G. Fletcher at Frandzel Robins Bloom & Csato, L.C. Marshall F. Goldberg, Esq. at Glass & Goldberg argues for creditor Fifth Third Bank. Creditor The Macerich Company is represented by Brian D. Huben, Esq. at Katten Muchin Rosenman LLP. Interested Party DPM Acquisition is represented by Joshua D. Wayser, Esq. at Katten Muchin Rosenman LLP. PETTERS COMPANY: Trustee Consents to PBE's Cash Collateral Use -------------------------------------------------------------- The Hon. Gregory F. Kishel of the U.S. Bankruptcy Court for the District of Minnesota authorized Douglas Kelley, the duly appointed Chapter 11 trustee for Petters Company, Inc., et. al., to consent to the use of cash collateral by the Chapter 7 trustee of PBE Corporation, fka Polaroid Corp., et al., until Dec. 31, 2012, subject to the terms agreed upon by the PCI Debtors and the PBE Chapter 7 Trustee and memorialized in a cash collateral agreement. As reported in the Troubled Company Reporter on Jan. 25, 2012, John R. Stoebner, Chapter 7 Bankruptcy Trustee of PBE Corp. and its debtor-affiliates in the bankruptcy proceeding at Docket No. 08-46617 also pending in the District of Minnesota, has sought approval of a proposed budget and for authorization for the use of cash collateral in which PCI has an interest. The PBE Chapter 7 Trustee has represented that the cash collateral is necessary for him to perform his statutory duties in the first half of 2012. The PBE Chapter 7 Trustee expects the expenses in the first half of [2012] to include expenses incurred in preparation and filing of 2011 tax returns, retention of data and related knowledgeable individuals, 2011 payroll and human resources reporting, claims reconciliation and retention of former employees of the Debtor to assist in verifying filed claims, treasury wind-down, everyday accounting, budgeting and forecasting in order to manage the cash in the estate, estate management, finalizing sale of estate assets, professional fees and costs incurred in connection of evaluation and resolution of existing and prospective existing matters and adversary proceedings. Douglas Kelley, as Chapter 11 trustee of the PCI Debtors, believes that the PBE Chapter 7 Trustee will only use the amount of cash collateral that is necessary to avoid immediate and irreparable harm to the PBE Debtors' estates. The PBE Debtors will provide adequate protection to the PCI Debtors by granting replacement liens. The Troubled Company Reporter previously reported PBE is subject to specified obligations that are owed and secured to PCI, among others, in an amount in excess of $40 million in the aggregate, under note and loan documents executed by Thomas J. Petters on behalf of Polaroid-affiliated entities. About Petters Company, Inc. Based in Minnetonka, Minn., Petters Group Worldwide LLC is a collection of some 20 companies, most of which make and market consumer products. It also works with existing brands through licensing agreements to further extend those brands into new product lines and markets. Holdings include Fingerhut (consumer products via its catalog and Web site), SoniqCast (maker of portable, WiFi MP3 devices), leading instant film and camera company Polaroid (purchased for $426 million in 2005), Sun Country Airlines (acquired in 2006), and Enable Holdings (online marketplace and auction for consumers and manufacturers' overstock inventory). Founder and chairman Tom Petters formed the company in 1988. Petters Company, Inc., is the financing and capital-raising unit of Petters Group Worldwide. Thomas Petters, the founder and former CEO of Petters Group, has been indicted and a criminal proceeding against him is proceeding in the U.S. District Court for the District of Minnesota. Petters Company, Petters Group Worldwide and eight other affiliates filed separate petitions for Chapter 11 protection (Bankr. D. Minn. Lead Case No. 08-45257) on Oct. 11, 2008. In its petition, Petters Company estimated its debts at $500 million and $1 billion. Parent Petters Group Worldwide estimated its debts at not more than $50,000. Fruth, Jamison & Elsass, PLLC, represents Douglas Kelley, the duly appointed Chapter 11 Trustee of Petters Company, Inc., et al. The trustee tapped Haynes and Boone, LLP as special counsel, and Martin J. McKinley as his financial advisor. Petters Aviation, LLC, and affiliates MN Airlines, LLC, doing business as Sun Country Airlines, Inc., and MN Airline Holdings, Inc., filed separate petitions for Chapter 11 bankruptcy protection (Bankr. D. Minn. Case Nos. 08-45136, 08-35197 and 08-35198) on Oct. 6, 2008. Petters Aviation is a wholly owned unit of Thomas Petters Inc. and owner of MN Airline Holdings, Sun Country's parent company. PITTSBURGH CORNING: Court OKs League Park as Financial Advisor -------------------------------------------------------------- The Hon. Judith K. Fitzgerald of the U.S. Bankruptcy Court for the Western District of Pennsylvania authorized Pittsburgh Corning Corporation to employ to employ League Park Advisors as its financial advisor to provide strategic advice related to its business operations. League Park will serve as an outside financial advisor to help the Debtor in identifying and implementing steps to improve its core business well as providing advice and assistance with regard to potential sales or acquisitions of assets or business units. The Debtor proposes to engage League Park for a limited period at a fee that will not exceed $100,000 without further Court approval. The Debtor relates that it employs Deloitte and Touche to provide various accounting services, and League Park will in no way duplicate those services. To the best of the Debtor's knowledge, League Park is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Pittsburgh Corning The Debtor produces architectural glass block at its Pennsylvania plant, and Foamglas(R) insulation at its plants in Missouri and Texas. Pittsburgh Corning Corporation filed for Chapter 11 bankruptcy protection (Bankr. W.D. Pa. Case No. 00-22876) on April 16, 2000, to address numerous claims alleging personal injury from exposure to asbestos. At the time of the bankruptcy filing, there were about 11,800 claims pending against the Company in state court lawsuits alleging various theories of liability based on exposure to Pittsburgh Corning's asbestos products and typically requesting monetary damages in excess of $1 million per claim. The Hon. Judith K. Fitzgerald presides over the case. Reed Smith LLP serves as counsel and Deloitte & Touche LLP as accountants to the Debtor. The United States Trustee appointed a Committee of Unsecured Trade Creditors on April 28, 2000. The Bankruptcy Court authorized the retention of Leech, Tishman, Fuscaldo & Lampl, LLC, as counsel to the Committee of Unsecured Trade Creditors, and Pascarella & Wiker, LLP, as financial advisor. The U.S. Trustee also appointed a Committee of Asbestos Creditors on April 28, 2000. The Bankruptcy Court authorized the retention of these professionals by the Committee of Asbestos Creditors: (i) Caplin & Drysdale, Chartered as Committee Counsel; (ii) Campbell & Levine as local counsel; (iii) Anderson Kill & Olick, P.C. as special insurance counsel; (iv) Legal Analysis Systems, Inc., as Asbestos-Related Bodily Injury Consultant; (v) defunct firm, L. Tersigni Consulting, P.C. as financial advisor, and (vi) Professor Elizabeth Warren, as a consultant to Caplin & Drysdale, Chartered. On Feb. 16, 2001, the Court approved the appointment of Lawrence Fitzpatrick as the Future Claimants' Representative. The Bankruptcy Court authorized the retention of Meyer, Unkovic & Scott LLP as his counsel, Young Conaway Stargatt & Taylor, LLP as his special counsel, and Analysis, Research and Planning Corporation as his claims consultant. In 2003, a plan of reorganization was agreed to by various parties-in-interest, but, on Dec. 21, 2006, the Bankruptcy Court issued an order denying the confirmation of that plan, citing that the plan was too broad in addressing independent asbestos claims that were not associated with Pittsburgh Corning. On Jan. 29, 2009, an amended plan of reorganization (the Amended PCC Plan) -- which addressed the issues raised by the Court when it denied confirmation of the 2003 Plan -- was filed with the Bankruptcy Court. As reported by the TCR on April 25, 2012, Pittsburgh Corning Corp., a joint venture between Corning Inc. and PPG Industries Inc., filed another amendment to its reorganization plan designed to wrap up a Chapter 11 begun 12 years ago. According to the report, a hearing to consider the new plan is scheduled for June 21. PITTSBURG CORNING: July 20 Hearing on DIP Loan Extension to 2015 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Pennsylvania will consider on July 20, 2012, at 1 p.m., the eighth amendment of debtor-in-possession credit agreement between Pittsburgh Corning Corporation and PNC Bank, National Association. The Debtor has requested that the Court authorize: i) the eighth amendment to the DIP credit agreement; (ii) borrow money and seek other financial accommodations from the lender pursuant to the DIP facility as amended; (iii) continue the liens, security interests and mortgages in the property of the estate granted to the lender, to secure payment of the foregoing borrowings by, and financial accommodations made to, the Debtor, and (iv) continue the lender's administrative priority claims, for such borrowings and financing accommodations. On Jan. 24, 1992, the Debtor executed and delivered to the lender an Amended and Restated Credit Agreement, pursuant to which the lender agreed to make loans and other financial accommodations to the Debtor. The Debtor would use the loan to fund its operating expenses and other costs. In consideration for the lender's consent to the use its cash collateral, the Debtor granted the lender certain rights and protections, including (1) a replacement lien on all property of the Debtor and its estate; (2) an administrative priority claim. The DIP Facility has been amended as necessary to extend the term and to make certain other minor adjustments. The term of DIP Facility currently extends to June 30, 2013. Pursuant to the eighth amendment, among other things: -- the term of the DIP Facility will be extended to June 30, 2015; -- the Debtor will pay a facility fee of $15,000 for the extension of the DIP Facility; and -- if the Debtor exits bankruptcy prior to July 1, 2013, the $15,000 facility fee will be credited to fees associated with any post-bankruptcy credit agreement entered into by reorganized PCC and the lender, and if the Debtor exits bankruptcy after July 1, 2013, but before July 1, 2014, and reorganized PCC enters into a post-bankruptcy credit agreement with the lender, $7,500 will be credited to such fees. A full-text copy of the amendment is available for free at http://bankrupt.com/misc/PITTSBURGH_creditagreement_Amendment.pdf About Pittsburgh Corning Pittsburgh Corning Corporation filed for Chapter 11 bankruptcy protection (Bankr. W.D. Pa. Case No. 00-22876) on April 16, 2000, to address numerous claims alleging personal injury from exposure to asbestos. At the time of the bankruptcy filing, there were about 11,800 claims pending against the Company in state court lawsuits alleging various theories of liability based on exposure to Pittsburgh Corning's asbestos products and typically requesting monetary damages in excess of $1 million per claim. The Hon. Judith K. Fitzgerald presides over the case. Reed Smith LLP serves as counsel and Deloitte & Touche LLP as accountants to the Debtor. The United States Trustee appointed a Committee of Unsecured Trade Creditors on April 28, 2000. The Bankruptcy Court authorized the retention of Leech, Tishman, Fuscaldo & Lampl, LLC, as counsel to the Committee of Unsecured Trade Creditors, and Pascarella & Wiker, LLP, as financial advisor. The U.S. Trustee also appointed a Committee of Asbestos Creditors on April 28, 2000. The Bankruptcy Court authorized the retention of these professionals by the Committee of Asbestos Creditors: (i) Caplin & Drysdale, Chartered as Committee Counsel; (ii) Campbell & Levine as local counsel; (iii) Anderson Kill & Olick, P.C. as special insurance counsel; (iv) Legal Analysis Systems, Inc., as Asbestos-Related Bodily Injury Consultant; (v) defunct firm, L. Tersigni Consulting, P.C. as financial advisor, and (vi) Professor Elizabeth Warren, as a consultant to Caplin & Drysdale, Chartered. On Feb. 16, 2001, the Court approved the appointment of Lawrence Fitzpatrick as the Future Claimants' Representative. The Bankruptcy Court authorized the retention of Meyer, Unkovic & Scott LLP as his counsel, Young Conaway Stargatt & Taylor, LLP as his special counsel, and Analysis, Research and Planning Corporation as his claims consultant. In 2003, a plan of reorganization was agreed to by various parties-in-interest, but, on Dec. 21, 2006, the Bankruptcy Court issued an order denying the confirmation of that plan, citing that the plan was too broad in addressing independent asbestos claims that were not associated with Pittsburgh Corning. On Jan. 29, 2009, an amended plan of reorganization (the Amended PCC Plan) -- which addressed the issues raised by the Court when it denied confirmation of the 2003 Plan -- was filed with the Bankruptcy Court. As reported by the TCR on April 25, 2012, Pittsburgh Corning Corp., a joint venture between Corning Inc. and PPG Industries Inc., filed another amendment to its reorganization plan designed to wrap up a Chapter 11 begun 12 years ago. According to the report, a hearing to consider the new plan is scheduled for June 21. PLC SYSTEMS: Secures $1 Million Financing from Genesis ------------------------------------------------------ PLC Systems Inc. has completed an additional round of financing with an affiliate of Genesis Capital Advisors LLC. These funds will enable PLC to continue its U.S. clinical trials for its RenalGuard program, as well as continue to expand its distribution of RenalGuard internationally. PLC has received $1 million of the additional funding, and anticipates securing two additional payments of $500,000 each over the next six months through the sale of Senior Secured Convertible Notes and Warrants. The Senior Secured Convertible Notes contain the same conversion terms and the Warrants contain the same exercise prices as those provided in the initial $4 million financing in February 2011. Under the financing agreement, PLC has issued Genesis 5% Senior Secured Convertible Notes that mature three years from date of issuance, Warrants offering 100% coverage that can be exercised within five years from issuance and additional Warrants to purchase up to an additional 10,000,000 shares of common stock at an exercise price of $.25 per share. This funding is in addition to Genesis' original $4 million financing in February 2011 and includes monies that had been available to PLC based upon meeting certain operational milestones, or at the investor's discretion. Mark R. Tauscher, president and chief executive officer of PLC Systems Inc., stated, "We greatly appreciate the vote of confidence from Genesis in providing this additional funding, which will enable us to make more concerted progress both with our U.S. clinical trial as well as in seeking to generate more substantial sales internationally with our expanded network of distributors. All the scientific data we have seen thus far, from investigator-sponsored clinical trials and other industry data, convince us that RenalGuard addresses a significant currently unmet need to reduce the risk of contrast induced nephropathy (CIN) among at-risk patients undergoing cardiac catheterization and similar procedures. Making substantial headway with our U.S. clinical trial is a primary goal for PLC, since our ability to demonstrate RenalGuard's efficacy in combating contrast-induced nephropathy (CIN) in the U.S. is essential to enabling the product to reach the large U.S. market. We are delighted with today's news, and look forward to sharing our progress as we move ahead." Ethan Benovitz, Managing Member of Genesis, said, "We, too, are convinced that PLC's RenalGuard brings a dramatically new and easy technology to bear on an important medical need - one where the patient base is growing continually. We have fully assessed both the market and the technology, and we're very pleased to have the opportunity to help bring this important and potentially life- saving solution to more doctors and patients around the world. We increased our investment in PLC at this time in light of the company's significant progress since our original investment more than a year ago." RenalGuard, PLC's proprietary product, is currently being marketed in the European Union and additional countries around the world. Two independent investigator-sponsored clinical trials of RenalGuard's safety and efficacy in reducing the rate of CIN in at-risk patients, compared with conventional alternatives, have been conducted and demonstrated in Europe with significant reductions in the rates of CIN being shown in the RenalGuard treatment groups; other investigator-sponsored studies are underway assessing longer-term efficacy rates and other aspects. About PLC Systems Milford, Massachusetts-based PLC Systems Inc. is a medical device company specializing in innovative technologies for the cardiac and vascular markets. The Company's key strategic growth initiative is its newest marketable product, RenalGuard(R). RenalGuard is designed to reduce the potentially toxic effects that contrast media can have on the kidneys when it is administered to patients during certain medical imaging procedures. Following the 2011 financial results, McGladrey & Pullen, LLP, in Boston, Massachusetts, expressed substantial doubt about PLC Systems' ability to continue as a going concern. The independent auditors noted that the Company has sustained recurring net losses and negative cash flows from continuing operations. The Company reported a net loss of $5.76 million for 2011, compared with a net loss of $505,000 for 2010. The Company's balance sheet at March 31, 2012, showed $2.55 million in total assets, $13.21 million in total liabilities and a $10.66 million total stockholders' deficit. QUANTUM FUEL: D. Mazaika Named Exec. Director of Strategic Dev. --------------------------------------------------------------- David Mazaika was appointed to serve as Quantum Fuel Systems Technologies Worldwide, Inc.'s Executive Director of Strategic Development. Mr. Mazaika will report directly to the Company's Chief Executive Officer. Prior to his appointment as Executive Director of Strategic Development, Mr. Mazaika served as the Company's Chief Operating Officer since December 2008. Also effective June 27, 2012, Mark Arold, age 48, was appointed to serve as Vice President of the Company's Drive Systems business unit. Mr. Arold has been with the Company since 2002 and had served as the Company's Director of Drive Systems Engineering since 2006. Mr. Arold received a Bachelor of Science in Mechanical Engineering degree and a Master of Science in Mechanical Engineering degree from Pennsyvania State University. On June 29, 2012, Thorin Southworth, age 37, commenced employment with the Company as its Corporate Controller. From August 2011 to June 2012, Mr. Southworth served as a division controller at Synchronous Aerospace Group. From May 2006 to August 2011, Mr. Southworth served in various capacities in the Company's accounting and finance group including as Assistant Controller. Mr. Southworth holds a Bachelor of Arts degree in accounting and finance from Pacific Lutheran University. About Quantum Fuel Based in Irvine, California, Quantum Fuel Systems Technologies Worldwide, Inc., is a fully integrated alternative energy company and considers itself a leader in the development and production of advanced clean propulsion systems and renewable energy generation systems and services. Quantum Fuel reported a net loss attributable to stockholders of $38.49 million on $24.47 million of total revenue for the eight months ended Dec. 31, 2011, compared with a net loss attributable to stockholders of $6.52 million on $10.51 million of total revenue for the same period a year ago. The Company reported a net loss of $11.03 million for the year ended April 30, 2011, following a net loss of $46.29 million during the prior year. The Company's balance sheet at March 31, 2012, showed $51.54 million in total assets, $17.48 million in total liabilities, and $34.06 million in total stockholders' equity. Haskell & White LLP, the Company's independent registered public accounting firm for the Transition Period ended Dec. 31, 2011, has included an explanatory paragraph in their opinion that accompanies the Company's audited consolidated financial statements as of and for the eight months ended Dec. 31, 2011, indicating that the Company's current liquidity position raises substantial doubt about its ability to continue as a going concern. If the Company is unable to further improve its liquidity position, the Company may not be able to continue as a going concern. RANCHER ENERGY: Seeks Court Approval of GasRock Settlement ---------------------------------------------------------- Rancher Energy Corporation asks the Bankruptcy Court to approve its settlement agreement with GasRock Capital LLC and Linc Energy to resolve the adversary proceeding against GasRock. On Feb. 12, 2010, the Company filed an adversary proceeding in the Bankruptcy Court against GasRock Capital LLC, Case No. 10-01173- MER. The complaint seeks to recover the 10% net profits interest conveyed to GasRock in connection with the Eighth Amendment to the Term Credit Agreement and the additional 1% overriding royalty interest conveyed to the Lender in October 2008 in connection with an extension of the short term note. The primary basis of the complaint is that the Lender gave less than fair equivalent value for the conveyances at a time when the Company was insolvent, or when the conveyances left the Company with insufficient capital. In other words, the Company has claimed that the value of the conveyances was in excess of a reasonable fee for the extensions, and, as a result, the conveyances were "constructively fraudulent" under both applicable Bankruptcy law and the Uniform Fraudulent Transfers Act. In addition, the Company has challenged the conveyance of the NPI and the 1% ORRI, together with the original 2% ORRI conveyed to Lender when its loan was first made, on the grounds that they should be characterized as security interests and not outright transfers of title. The Bankruptcy Court has granted GasRock's motion to dismiss these claims. The Company has also claimed that the conveyances rendered the Loan usurious under Texas law. Furthermore, the Company has sought to have the NPI and 1% ORRI avoided as preferences under Section 547 of the Bankruptcy Code and to equitably subordinate the Lender's claim. If the settlement is approved, the Company will: (a) receive the disputed NPI, which the Company must convey to Linc Energy; (b) release all claims to the funds held in escrow pursuant to the terms of the sale of substantially all of its assets to Linc Energy; (c) receive from Linc Energy $525,000 plus all of Rancher's litigation costs due under the Litigation Agreement with Linc Energy; (d) dismiss the adversary proceeding against GasRock with prejudice; and (e) will be released from GasRock's claim for attorneys' fees and costs that GasRock asserts it is owed for defending itself in the adversary proceeding. About Rancher Energy Denver, Colorado-based Rancher Energy Corp. (OTC BB: RNCHQ) -- http://www.rancherenergy.com/-- explores for and develops produces, and markets oil and gas in North America. Through March 2011, the Company operated four oil fields in the Powder River Basin, Wyoming. The Company was formerly known as Metalex Resources, Inc., and changed its name to Rancher Energy Corp. in 2006. Rancher Energy filed for Chapter 11 bankruptcy protection (Bankr. D. Colo. Case No. 09-32943) on Oct. 28, 2009. In its petition, the Company estimated assets and debts of between $10 million and $50 million each. The Debtor is represented by Michael J. Guyerson, Esq. and Christian C. Onsager, Esq., at Onsager, Staelin & Guyerson, LLC. The Company sold substantially all of its assets effective March 1, 2011, to Linc Energy Petroleum (Wyoming), Inc. in exchange for $20 million cash plus other potential future consideration up to $825,000, and subject to other adjustments. The deal was approved Feb. 24, 2011. RESIDENTIAL CAPITAL: Committee Hiring Kramer Levin as Counsel ------------------------------------------------------------- The Official Committee of Unsecured Creditors in Residential Capital's bankruptcy cases seeks the Court's authority to retain Kramer Levin Naftalis & Frankel LLP as its counsel, nunc pro tunc to May 16, 2012. As counsel, Kramer Levin will render legal services as the Creditors Committee may consider desirable to discharge its responsibilities and further the interests of its constituents in the cases. Kramer Levin will also assist, advise and represent the Creditors Committee with respect to, among other things, the administration of the cases and the exercise of oversight with respect to the Debtors' affairs. Kramer Levin will be paid on an hourly basis and reimburse the firm for its expenses. The firm's hourly rates are: Personnel Hourly Rates --------- ------------ Partners $675 - $1,025 Counsel $725 - $1,065 Special Counsel $700 - $780 Associates $375 - $765 Legal Assistants $180 - $310 Kenneth H. Eckstein, Esq., an attorney at law at Kramer Levin, attests that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. A hearing on the application will be held on July 13, 2012. Objections are due on July 6. About ResCap Residential Capital LLC, the unprofitable mortgage subsidiary of Ally Financial Inc., filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012. Neither Ally Financial nor Ally Bank is included in the bankruptcy filings. ResCap, one of the country's largest mortgage originators and servicers, was sent to Chapter 11 with 50 subsidiaries amid "continuing industry challenges, rising litigation costs and claims, and regulatory uncertainty," according to a company statement. ResCap disclosed $15.68 billion in assets and $15.28 billion in liabilities as of March 31, 2012. ResCap is selling its mortgage origination and servicing businesses to Nationstar Mortgage LLC, and its legacy portfolio, consisting mainly of mortgage loans and other residual financial assets, to Ally Financial. Together, the asset sales are expected to generate approximately $4 billion in proceeds. Centerview Partners LLC and FTI Consulting are acting as financial advisers to ResCap. Morrison & Foerster LLP is acting as legal adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is the conflicts counsel. Rubenstein Associates, Inc., is the public relations consultants to the Company in the Chapter 11 case. Morrison Cohen LLP is advising ResCap's independent directors. Kurtzman Carson Consultants LLP is the claims and notice agent. Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves as counsel to Ally Financial. Bankruptcy Creditors' Service, Inc., publishes RESIDENTIAL CAPITAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Residential Capital LLC and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). RESIDENTIAL CAPITAL: Committee Proposes AlixPartners as Advisor --------------------------------------------------------------- The Official Committee of Unsecured Creditors in Residential Capital's bankruptcy cases seeks the Court's authority to retain AlixPartners, LLP, as its financial advisor, nunc pro tunc to May 21, 2012. As financial advisor, AlixPartners will, among other things, advise and assist the Creditors Committee in its review and investigation of (i) intercompany transactions and selected other prepetition transactions, and (ii) preference payments, fraudulent conveyances and other causes of action that the Debtors' bankruptcy estates may hold against third parties. AlixPartners will be paid on an hourly basis and reimburse the firm for its expenses. The firm's hourly rates are: Personnel Hourly Rates --------- ------------ Managing Directors $815 - $970 Directors $620 - $760 Vice Presidents $455 - $555 Associates $305 - $405 Analysts $270 - $300 Paraprofessionals $205 - $225 Harvey R. Kelly, a Managing Director with AlixPartners, attests that AlixPartners is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About ResCap Residential Capital LLC, the unprofitable mortgage subsidiary of Ally Financial Inc., filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012. Neither Ally Financial nor Ally Bank is included in the bankruptcy filings. ResCap, one of the country's largest mortgage originators and servicers, was sent to Chapter 11 with 50 subsidiaries amid "continuing industry challenges, rising litigation costs and claims, and regulatory uncertainty," according to a company statement. ResCap disclosed $15.68 billion in assets and $15.28 billion in liabilities as of March 31, 2012. ResCap is selling its mortgage origination and servicing businesses to Nationstar Mortgage LLC, and its legacy portfolio, consisting mainly of mortgage loans and other residual financial assets, to Ally Financial. Together, the asset sales are expected to generate approximately $4 billion in proceeds. Centerview Partners LLC and FTI Consulting are acting as financial advisers to ResCap. Morrison & Foerster LLP is acting as legal adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is the conflicts counsel. Rubenstein Associates, Inc., is the public relations consultants to the Company in the Chapter 11 case. Morrison Cohen LLP is advising ResCap's independent directors. Kurtzman Carson Consultants LLP is the claims and notice agent. Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves as counsel to Ally Financial. Bankruptcy Creditors' Service, Inc., publishes RESIDENTIAL CAPITAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Residential Capital LLC and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). RESIDENTIAL CAPITAL: Green Planet Sues GMAC Mortgage ---------------------------------------------------- Green Planet Servicing, LLC, filed a complaint against GMAC Mortgage, LLC, seeking a declaratory judgment determining that a residential mortgage loan servicing agreement between them was both materially breached by GMAC and terminated by Green Planet before the Petition Date. Green Planet said it filed the complaint because, despite the prepetition termination of the contract between the parties, GMAC continues to treat the contract as if it were in full force and effect, brining harm and detriment to Green Planet. Green Planet added that GMAC intends to "assume" and assign" the contract to a third-party purchaser through the Chapter 11 cases. Green Planet asserted that GMAC lost its right to sub-service a pool of 30,000 residential mortgages with a total principal balance of $5.2 billion. Green Planet also filed a separate motion seeking modification of the automatic stay to effectuate the prepetition termination of the same servicing agreement, or, alternatively, allow the postpetition termination of the agreement. About ResCap Residential Capital LLC, the unprofitable mortgage subsidiary of Ally Financial Inc., filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012. Neither Ally Financial nor Ally Bank is included in the bankruptcy filings. ResCap, one of the country's largest mortgage originators and servicers, was sent to Chapter 11 with 50 subsidiaries amid "continuing industry challenges, rising litigation costs and claims, and regulatory uncertainty," according to a company statement. ResCap disclosed $15.68 billion in assets and $15.28 billion in liabilities as of March 31, 2012. ResCap is selling its mortgage origination and servicing businesses to Nationstar Mortgage LLC, and its legacy portfolio, consisting mainly of mortgage loans and other residual financial assets, to Ally Financial. Together, the asset sales are expected to generate approximately $4 billion in proceeds. Centerview Partners LLC and FTI Consulting are acting as financial advisers to ResCap. Morrison & Foerster LLP is acting as legal adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is the conflicts counsel. Rubenstein Associates, Inc., is the public relations consultants to the Company in the Chapter 11 case. Morrison Cohen LLP is advising ResCap's independent directors. Kurtzman Carson Consultants LLP is the claims and notice agent. Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves as counsel to Ally Financial. Bankruptcy Creditors' Service, Inc., publishes RESIDENTIAL CAPITAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Residential Capital LLC and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). RESIDENTIAL CAPITAL: Residential Funding Files Schedules -------------------------------------------------------- Debtor Residential Funding Company, LLC, disclosed in its schedules of assets and liabilities that it had $3,781,491,928 in assets consisting of $13,157,557 in real property and $3,768,334,370 in personal property, and $2,460,480,369 in liabilities consisting of $1,128,264,150 owed to creditors holding secured claims, $151,125 owed to creditors holding unsecured priority claims and $1,332,065,093 owed to creditors holding unsecured non-priority claims. Full-text copies of Residential Funding's Schedules are available for free at http://bankrupt.com/misc/rfc_july2sal.pdf Residential Funding also disclosed in its statement of financial affairs that it obtained income from operation of its business for the two-year period preceding the Petition Date: Income from Net Revenue Continuing Operations Time Period ----------- --------------------- ----------- $113,061,330 $94,299,432 01/01/12-05/13/12 $5,091,575 ($187,809,931) Year 2011 $421,781,860 $391,066,758 Year 2010 For income other than from operation of its business obtained for the two-year period preceding the Petition, Residential Funding disclosed: Income from Net Revenue Continuing Operations Time Period ----------- --------------------- ----------- ($8,372,133) $15,786,688 01/01/12-05/13/12 ($40,364,867) $779,688,116 Year 2010 $78,115,421 $0 Year 2011 A full-text copy of Residential Funding's Statement is available for free at http://bankrupt.com/misc/rfc_july2sofa.pdf About ResCap Residential Capital LLC, the unprofitable mortgage subsidiary of Ally Financial Inc., filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012. Neither Ally Financial nor Ally Bank is included in the bankruptcy filings. ResCap, one of the country's largest mortgage originators and servicers, was sent to Chapter 11 with 50 subsidiaries amid "continuing industry challenges, rising litigation costs and claims, and regulatory uncertainty," according to a company statement. ResCap disclosed $15.68 billion in assets and $15.28 billion in liabilities as of March 31, 2012. ResCap is selling its mortgage origination and servicing businesses to Nationstar Mortgage LLC, and its legacy portfolio, consisting mainly of mortgage loans and other residual financial assets, to Ally Financial. Together, the asset sales are expected to generate approximately $4 billion in proceeds. Centerview Partners LLC and FTI Consulting are acting as financial advisers to ResCap. Morrison & Foerster LLP is acting as legal adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is the conflicts counsel. Rubenstein Associates, Inc., is the public relations consultants to the Company in the Chapter 11 case. Morrison Cohen LLP is advising ResCap's independent directors. Kurtzman Carson Consultants LLP is the claims and notice agent. Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves as counsel to Ally Financial. Bankruptcy Creditors' Service, Inc., publishes RESIDENTIAL CAPITAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Residential Capital LLC and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). RG STEEL: To Abandon Sparrows Point Cleanup, Environmentalists Say ------------------------------------------------------------------ Environmentalists are worried that RG Steel Wheeling LLC will use its bankruptcy to abandon the cleanup of the Sparrows Point site in eastern Maryland, Chuck Bennett at the New York Post reports. NY Post relates that the Debtor assumed some $650 million in environmental liabilities, which include ongoing treatment of groundwater contaminated with benzene and naphthalene, both considered carcinogens. According to NY Post, RG Steel chief administrative officer David Pryzbylski said that it was poor market conditions that led to the bankruptcy filing, and that all environmental obligations will be honored. "I don't think Sparrow Point poses any immediate threat to public health or safety. We are in full compliance with all environmental commitments," NY Post quoted Mr. Pryzbylski as saying. About RG Steel RG Steel LLC -- http://www.rg-steel.com/-- is the United States' fourth-largest flat-rolled steel producer with annual steelmaking capacity of 7.5 million tons. It was formed in March 2011 following the purchase of three steel facilities located in Sparrows Point, Maryland; Wheeling, West Virginia and Warren, Ohio, from entities related to Severstal US Holdings LLC. RG Steel also owns finishing facilities in Yorkville and Martins Ferry, Ohio. It also owns Wheeling Corrugating Company and has a 50% ownership in Mountain State Carbon and Ohio Coatings Company. RG Steel along with affiliates, including WP Steel Venture LLC, sought bankruptcy protection (Bankr. D. Del. Lead Case No. 12- 11661) on May 31, 2012, to pursue a sale of the business. The bankruptcy was precipitated by liquidity shortfall and a dispute with Mountain State Carbon, LLC, and a Severstal affiliate, that restricted the shipment of coke used in the steel production process. The Debtors estimated assets and debts in excess of $1 billion as of the Chapter 11 filing. The Debtors owe (i) $440 million, including $16.9 million in outstanding letters of credit, to senior lenders led by Wells Fargo Capital Finance, LLC, as administrative agent, (ii) $218.7 million to junior lenders, led by Cerberus Business Finance, LLC, as agent, (iii) $130.5 million on account of a subordinated promissory note issued by majority owner The Renco Group, Inc., and (iv) $100 million on a secured promissory note issued by Severstal. Judge Kevin J. Carey presides over the case. The Debtors are represented in the case by Robert J. Dehney, Esq., and Erin R. Fay, Esq., at Morris, Nichols, Arsht & Tunnell LLP, and Matthew A. Feldman, Esq., Shaunna D. Jones, Esq., Weston T. Eguchi, Esq., at Willkie Farr & Gallagher LLP, represent the Debtors. Conway MacKenzie, Inc., serves as the Debtors' financial advisor and The Seaport Group serves as lead investment banker. Donald MacKenzie of Conway MacKenzie, Inc., as CRO. Kurtzman Carson Consultants LLC is the claims and notice agent. Wells Fargo Capital Finance LLC, as Administrative Agent, is represented by Jonathan N. Helfat, Esq., and Daniel F. Fiorillo, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C.; and Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachuiski Stang Ziehi & Jones LLP. Renco Group is represented by lawyers at Cadwalader, Wickersham & Taft LLP. An official committee of unsecured creditors has been appointed in the case. RITE AID: Files Form 10-Q, Posts $28.1MM Net Loss in June 2 Qtr. ---------------------------------------------------------------- Rite Aid Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $28.08 million on $6.46 billion of revenue for the 13 week period ended June 2, 2012, compared with a net loss of $63.08 million on $6.39 billion of revenue for the 13 week period ended May 28, 2011. The Company's balance sheet at June 2, 2012, showed $7.07 billion in total assets, $9.68 billion in total liabilities and a $2.61 billion total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/HVTP9s About Rite Aid Corp. Drugstore chain Rite Aid Corporation (NYSE: RAD) -- http://www.riteaid.com/-- based in Camp Hill, Pennsylvania, has more than 4,700 stores in 31 states and the District of Columbia and fiscal 2010 annual revenues of $25.7 billion. Rite Aid reported a net loss of $368.57 million for the fiscal year ended March 3, 2012, a net loss of $555.42 million for the year ended Feb. 26, 2011, and a net loss of $506.67 million for the year ended Feb. 27, 2010. * * * In February 2012, S&P affirmed Rite Aid's 'B-' corporate credit rating. During that time, Moody's Investors Service also affirmed its Caa2 Corporate Family Rating, Caa2 Probability of Default Rating, and SGL-3 Speculative Grade Liquidity rating. "The ratings reflect our expectation that Camp Hill, Pa.-based retail drugstore chain Rite Aid Corp.'s financial risk profile will remain 'highly leveraged', despite improving sales trends, due to its significant debt," said Standard & Poor's credit analyst Ana Lai. Moody's said in February that Rite Aid's Caa2 Corporate Family Rating reflects its weak credit metrics and unsustainable capital structure with debt to EBITDA of 8.8 times and EBITA to interest expense of 0.8 times. Although Moody's believes that Rite Aid earnings will benefit from Walgreen's dispute with Express Scripts as well as from the strong generic pipeline, Moody's anticipates that lower reimbursement rates will offset some of this positive earnings pressure. Thus, Moody's forecasts that Rite Aid's credit metrics will remain weak. In addition, Rite Aid faces a tradeoff between the need to address its sizable 2014 and 2015 debt maturities against the likelihood that any refinancing will be at a higher interest rate. Should Rite Aid successfully refinance its 2014 and 2015 debt maturities, its borrowing costs will likely increase further weakening Rite Aid's interest coverage. Consequently, Moody's is concerned that Rite Aid may choose to voluntarily restructure its debt over the medium term. ROBERTS HOTELS: Gets Final OK to Use Lender's Cash Collateral ------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Missouri authorized, on a final basis, Roberts Hotels Houston, L.L.C., et al.'s continued use of the Debtor's cash on hand, together with all proceeds and products of any of the Debtor's assets. The collateral secures the Debtor's obligation to Bank of America, N.A., under that certain Term Loan Agreement dated as of June 6, 2007, as amended by that certain First Amendment to Loan Agreement dated as of Aug. 5, 2011. The Court ordered that the cash collateral may be used on Debtor's behalf by DATX Associates, LLC, the manager of the hotel owned by Debtor located in Dallas, Texas, solely to pay ordinary prepetition wages and postpetition ordinary and necessary costs of operating the Dallas Hotel, as determined by DATX Associates. As adequate protection from any diminution in value of the lender's collateral, the Debtor will grant the lender replacement liens in all currently owned and hereafter acquired assets or properties of the Debtor and its estate. About Roberts Hotels Hotel portfolios owned by St. Louis, Mo.-based Roberts Cos. have filed separate Chapter 11 bankruptcy petitions. The hotels are among those involved in a lawsuit Bank of America filed against Roberts Cos. in April 2012. BofA alleges Roberts Cos. defaulted on a loan to renovate six hotels it owns outside of Missouri and owes more than $34 million. The hotels are located in Tampa, Atlanta, Dallas, Houston, Shreveport, La., and Spartanburg, S.C. Roberts Hotels Dallas LLC, which operates as a Courtyard by Marriott at 2383 Stemmons Trail in Dallas, filed for Chapter 11 bankruptcy (Bankr. E.D. Mo. Case No. 12-45017) on May 23, 2012, listing $1 million to $10 million in assets, and $10 million to $50 million in debts. Roberts Hotels Atlanta LLC, dba Clarion Hotel Atlanta, filed for Chapter 11 (Bankr. E.D. Mo. Case No. 12-44493) on May 9, 2012, listing $1 million to $10 million in assets, and $10 million to $50 million in debts. Roberts Hotels Shreveport LLC, also under the Clarion flag, sought Chapter 11 bankruptcy protection (Bankr. E.D. Mo. Case No. 12- 44495) on May 9, listing between $1 million and $10 million in assets and between $10 million and $50 million in debts. Roberts Hotels Spartanburg LLC, which owns the Clarion Hotel, formerly named Radisson Hotel & Suites Spartanburg, filed a Chapter 11 petition (Bankr. E.D. Mo. Case No. 12-43756) on April 19, 2012. It scheduled $3,028,820 in assets and $34,775,209 in debts. Roberts Hotels Houston LLC, dba Holiday Inn Houston, filed for Chapter 11 (Bankr. E.D. Mo. Case No. 12-43590) on April 16, 2012, listing under $50,000 in assets and up to $50 million in debts. Roberts Hotels Tampa LLC, which owns the Comfort Inn hotel at 820 East Busch Blvd. in Tampa, filed for Chapter 11 Bankr. E.D. Mo. Case No. 12-44391) on May 7, estimating assets between $1 million and $10 million and debts between $10 million and $50 million. A. Thomas DeWoskin, Esq., at Danna McKitrick, PC, serves as the Debtors' counsel. The petitions were signed by Mike Kirtley, chief operating officer. On Dec. 15, 2011, Roberts Hotels Jackson LLC, which owns Roberts Walthall Hotel, filed for Chapter 11 protection (Bankr. S.D. Miss. Case No. 11-04341), estimating both assets and debts of between $1 million and $10 million. John D. Moore, P.A., represents the Debtor. The cases are jointly administered. SAINT VINCENTS: Court Confirms Second Amended Chapter 11 Plan ------------------------------------------------------------- The Hon. Cecelia G. Morris of the U.S. Bankruptcy Court for the Southern District of New York confirmed Saint Vincents Catholic Medical Centers of New York, et al.'s Second Amended Chapter 11 Plan, dated June 21, 2012. The Second Amended Plan approves and implements the terms of certain settlement agreements. The settlement by and among the Debtors and with statutory committee resolves potential disputes over the allocation of Sale Proceeds among the Debtors' estates and the validity, amount and treatment of all intercompany claims. Under the Plan, each holder of an allowed secured claim will receive the collateral securing the allowed secured claim. Holders of general unsecured claims will receive a pro rata share of the proceeds from an unsecured claims fund. A full-text copy of the Second Amended Plan is available for free at http://bankrupt.com/misc/SAINT_VINCENTS_ds_2amended.pdf About Saint Vincents Saint Vincents Catholic Medical Centers of New York, doing business as St. Vincent Catholic Medical Centers -- http://www.svcmc.org/-- was anchored by St. Vincent's Hospital Manhattan, an academic medical center located in Greenwich Village and the only emergency room on the Westside of Manhattan from Midtown to Tribeca, St. Vincent's Westchester, a behavioral health hospital in Westchester County, and continuing care services that include two skilled nursing facilities in Brooklyn, another on Staten Island, a hospice, and a home health agency serving the Metropolitan New York area. Saint Vincent Catholic Medical Centers of New York and six of its affiliates first filed for Chapter 11 protection on July 5, 2005 (Bankr. S.D.N.Y. Case Nos. 05-14945 through 05-14951). St. Vincents Catholic Medical Centers returned to bankruptcy court by filing another Chapter 11 petition (Bankr. S.D.N.Y. Case No. 10-11963) on April 14, 2010. The Debtor estimated assets of $348 million against debts totaling $1.09 billion in the new petition. Although the hospitals emerged from the prior reorganization in July 2007 with a Chapter 11 plan said to have "a realistic chance" of paying all creditors in full, the bankruptcy left the medical center with more than $1 billion in debt. The new filing occurred after a $64 million operating loss in 2009 and the last potential buyer terminated discussions for taking over the flagship hospital. Adam C. Rogoff, Esq., and Kenneth H. Eckstein, Esq., at Kramer Levin Naftalis & Frankel LLP, represent the Debtor in its Chapter 11 effort. SAAB CARS: Wants to Hire Donlin Recano as Balloting Agent --------------------------------------------------------- Saab Cars North America, Inc., asks the U.S. Bankruptcy Court for the District of Delaware for permission to employ Donlin, Recano & Company, Inc., as balloting agent. As reported in the Troubled Company Reporter on, March 23, 2012, DRC has been retained to provide claims and noticing agent services to the Debtors. As balloting agent, DRC will: 1) assist with, among other things, solicitation, balloting and tabulation and calculation of votes, well as preparing any appropriate reports, as required in furtherance of confirmation of plan(s) of reorganization; 2) generate an official ballot certification and testifying, if necessary, in support of the ballot tabulation results; and 3) in connection with the balloting services, handle requests for documents from parties-in-interest, including, if applicable, brokerage firms and bank back-offices and institutional holders. To the best of the Debtor's knowledge, DRC is a "disinterested persons" as that term is defined in Section 101(14) of the Bankruptcy Code. A hearing on July 10, 2012 at 11 a.m. (EDT) has been scheduled. About Saab Cars N.A. More than 40 U.S.-based Saab dealerships have signed an involuntary chapter 11 bankruptcy petition for Saab Cars North America, Inc., (Bankr. D. Del. Case No. 12-10344) on Jan. 30, 2012. The petitioners, represented by Wilk Auslander LLP, assert claims totaling $1.2 million on account of "unpaid warranty and incentive reimbursement and related obligations" and/or "parts and warranty reimbursement." Leonard A. Bellavia, Esq., at Bellavia Gentile & Associates, in New York, signed the Chapter 11 petition on behalf of the dealers. Donlin, Recano & Company, Inc. (DRC), has been retained to provide claims and noticing agent services to Saab Cars North America, Inc. in its Chapter 11 case. The dealers want the vehicle inventory and the parts business to be sold, free of liens from Ally Financial Inc. and Caterpillar Inc., and "to have an appropriate forum to address the claims of the dealers," Leonard A. Bellavia said in an e-mail to Bloomberg News. Saab Cars N.A. is the U.S. sales and distribution unit of Swedish car maker Saab Automobile AB. Saab Cars N.A. named in December an outside administrator, McTevia & Associates, to run the company as part of a plan to avoid immediate liquidation following its parent company's bankruptcy filing. Saab Automobile AB is a Swedish car manufacturer owned by Dutch automobile manufacturer Swedish Automobile NV, formerly Spyker Cars NV. Saab Automobile AB, Saab Automobile Tools AB and Saab Powertain AB filed for bankruptcy on Dec. 19, 2011, after running out of cash. On Feb. 24, 2012, the Court, inconsideration of the petition filed on Jan. 30, 2012, granted Saab Cars North America, Inc., relief under Chapter 11 of the Bankruptcy Code. On March 9, 2012, the U.S. Trustee formed an official Committee of Unsecured Creditors and appointed these members: Peter Mueller Inc., IFS Vehicle Distributors, Countryside Volkwagen, Saab of North Olmstead, Saab of Bedford, Whitcomb Motors Inc., and Delaware Motor Sales, Inc. The Committee tapped Wilk Auslander LLP as general bankruptcy counsel, and Polsinelli Shughart as its Delaware counsel. SB PARTNERS: Incurs $280,500 Net Loss in First Quarter ------------------------------------------------------ SB Partners filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $280,521 on $639,952 of total revenues for the three months ended March 31, 2012, compared with a net loss of $192,214 on $662,536 of total revenues for the same period during the prior year. SB Partners reported a net loss of $1.02 million in 2011, a net loss of $623,117 in 2010, and a net loss of $23.60 million in 2009. The Company's balance sheet at March 31, 2012, showed $18.22 million in total assets, $21.19 million in total liabilities and a $2.97 million total partners' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/iSVUL4 About SB Partners Milford, Conn.-based SB Partners is a New York limited partnership engaged in acquiring, operating and holding for investment a varying portfolio of real estate interests. As of June 30, 2010, the partnership owns an industrial flex property in Maple Grove, Minnesota and warehouse distribution centers in Lino Lakes, Minnesota and Naperville, Illinois. The Company has a 30% interest in Sentinel Omaha, LLC. Sentinel Omaha is a real estate investment company which currently owns 24 multifamily properties and 1 industrial property in 17 markets. Sentinel Omaha is an affiliate of the partnership's general partner. SHENGDATECH INC: Plan Confirmation Hearing Scheduled for Aug. 30 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Nevada will convene a hearing on Aug. 30, 2012, at 10 a.m., to consider the confirmation of Shengdatech, Inc.'s First Amended Plan of Reorganization dated June 20, 2012. Objections, if any, are due Aug. 16, at 4 p.m. Ballots accepting or rejecting the Plan are due Aug. 16. The Court also set Aug. 2, at 4 p.m., as the deadline for filing of claims estimation motions. On June 25, the Court approved the Disclosure Statement as containing adequate information in accordance with Section 1125 of the Bankruptcy Code. According to the Amended Disclosure Statement, the Plan terms include: Class 1: Other Priority Claims, and Class 2: Secured Claims will receive full payment on account of their allowed claims. General Unsecured Claims will receive greater than 1% on account of their allowed claims. Class 4: Noteholders' Securities Claims, and Class 5: Shareholders' Securities Claims will receive 0% or greater on account of their allowed claims. A full-text copy of the Amended Disclosure Statement is available for free at: http://bankrupt.com/misc/SHENGDATECH_INC_ds_1amended.pdf About ShengdaTech Headquartered in Shanghai, China, ShengdaTech, Inc., makes nano precipitated calcium carbonate for the tire industry. ShengdaTech converts limestone into nano-precipitated calcium carbonate (NPCC) using its proprietary and patent-protected technology. NPCC products are increasingly used in tires, paper, paints, building materials, and other chemical products. In addition to its broad customer base in China, the Company currently exports to Singapore, Thailand, South Korea, Malaysia, India, Latvia and Italy. ShengdaTech sought Chapter 11 bankruptcy protection from creditors (Bankr. D. Nev. Case No. 11-52649) on Aug. 19, 2011, in Reno, Nevada, in the United States. The Shanghai-China based company said in its bankruptcy filing it would fire all of its officers and restructure to try to recover from an accounting scandal. The Company disclosed US$295.4 million in assets and US$180.9 million in debt as of Sept. 30, 2011. The Company's legal representative in its Chapter 11 case is Greenberg Traurig, LLP. On Aug. 23, 2011, the Court entered an interim order confirming the Board of Directors Special Committee's appointment of Michael Kang as the Debtor's chief restructuring officer. Alvarez & Marsal North America, LLC, is the Company's chief restructuring officer. As reported in by the Troubled Company Reporter on Sept. 7, 2011, the United States Trustee appointed AG Ofcon, LLC, The Bank of New York, Mellon (in its role as indenture trustee for bondholders), and Zazove Associates, LLC, to serve on the Official Committee of Unsecured Creditors of ShengdaTech, Inc. Hogan Lovells US serves as counsel for ShengdaTech's official committee of unsecured creditors. The Plan provides for the wind-down of the Debtor's affairs and the Distribution of the Debtor's remaining assets to Creditors. STANFORD FINANCIAL: SIPC Won't Pay Defrauded Investors ------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that a U.S. district judge in Washington ruled that investors defrauded in the R. Allen Stanford Ponzi scheme won't have their claims paid by the Securities Investor Protection Corp. According to the report, the Securities and Exchange Commission started the equivalent of a lawsuit in December aimed at forcing SIPC to take over the liquidation of Stanford's brokerage firm, Stanford Group Co. Had the SEC prevailed, SIPC would have been required to cover customers' claims of as much as $500,000 each. The report relates that U.S. District Judge Robert L. Wilkins ruled against the SEC in an 18-page opinion on July 3. Instead of being paid fully or wholly in a liquidation funded by SIPC, investors in the $7 billion fraud will be repaid from recoveries in a receivership pending in a federal court in Texas. SIPC, the report discloses, argued successfully that its fund can't be used to pay Stanford's victims because the fraud involved certificates of deposit issued by a bank in Antigua, not by a broker in the U.S. that's a member of SIPC. According to the report, Judge Wilkins also agreed there is no SIPC coverage since there were no "customers" who gave money or securities to the Stanford broker for the purpose of safekeeping or sale. The money all went directly to the bank, the judge said. Although Judge Wilkins said he was "truly sympathetic to the plight" of Stanford investors, he also said the SEC was advocating an "extraordinarily broad" interpretation of the governing statute that "would unreasonably contort the statutory language." Judge Wilkins pointed out that the SEC made an about-face in the Stanford case. For the prior 30 years, Wilkins said, the SEC interpreted the Securities Investor Protection Act to mean that clients of introducing brokers aren't "customers." The judge made technical rulings as well, Mr. Rochelle points out. The judge said that the SEC needed to show by a "preponderance of the evidence" that SIPC was required to take over the liquidation. Even if the lesser standard of "probable cause" applied, the SEC also would lose, Judge Wilkins ruled. The case is Securities and Exchange Commission v. Securities Investor Protection Corp., 11-mc-00678, U.S. District Court, District of Columbia (Washington). About Stanford International Bank Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. On Feb. 16, 2009, the United States District Court for the Northern District of Texas, Dallas Division, signed an order appointing Ralph Janvey as receiver for all the assets and records of Stanford International Bank, Ltd., Stanford Group Company, Stanford Capital Management, LLC, Robert Allen Stanford, James M. Davis and Laura Pendergest-Holt and of all entities they own or control. The February 16 order, as amended March 12, 2009, directs the Receiver to, among other things, take control and possession of and to operate the Receivership Estate, and to perform all acts necessary to conserve, hold, manage and preserve the value of the Receivership Estate. STOCKTON, CA: Sets Aside More Than $3MM for 1st Year in Case ------------------------------------------------------------ Steven Church at Bloomberg News reports that Stockton city council members have set aside more than $3 million for the first year of a bankruptcy court fight with bondholders and labor unions over how to divide a smaller budget. Citing Joe Rose, an attorney for the city's biggest labor union, Bloomberg states that during talks in the months leading up to the bankruptcy, bondholders "were grossly unhappy with the city's proposal". According to Bloomberg, Wells Fargo spokesperson Elise Wilkinson said in an e-mail the day Stockton filed bankruptcy that the bank "expects to take an active role in the bankruptcy proceedings." Ms. Wilkinson said that Wells Fargo didn't lend the city any money, and that "all our efforts in the bankruptcy proceedings will be directed toward achieving a recovery for the holders of Stockton bonds." Court papers show that Stockton owed $124.3 million to Wells Fargo (WFC) Bank NA and $107 million to Wells Fargo. In court papers, Stockton named California Public Employees' Retirement System, or Calpers, as its biggest unsecured creditor. Stockton owed Calpers $147.5 million. Bloomberg relates that the attorneys for the city will appear in the U.S. Bankruptcy Court for the Eastern District of California on July 6 for the initial hearing in the case. Stockton, California, is now the largest city to seek bankruptcy protection in U.S. history. Stockton filed a Chapter 9 petition (Bankr. E.D. Calif. Case No. 12-32118) in Sacramento on Thursday, estimating more than $1 billion in assets and in excess of $500 million in liabilities. The city is being represented in bankruptcy court by Orrick, Herrington & Sutcliffe LLP, a San Francisco-based law firm with five offices in California, including Sacramento. TALON THERAPEUTICS: Joseph Landy Discloses 92.4% Equity Stake ------------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Joseph P. Landy and his affiliates disclosed that, as of July 3, 2012, they beneficially own 264,321,291+ shares of common stock of Talon Therapeutics, Inc., which represents 92.4% of the shares outstanding. Mr. Landy previously reported beneficial ownership of 263,171,568 common shares or a 92.3% equity stake as of April 5, 2012. A copy of the amended filing is available for free at: http://is.gd/LaGgbV 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. TIBET PHARMACEUTICALS: Howard G. Smith Launches Class Suit ---------------------------------------------------------- Law Offices of Howard G. Smith disclosed that a class action lawsuit has been filed in the United States District Court for the District Court of the Virgin Islands on behalf of all persons or entities who purchased or otherwise acquired the common stock of Tibet Pharmaceuticals, Inc. pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with the Company's Initial Public Offering, including all those who purchased Tibet stock after Dec. 28, 2010. Tibet focuses on the research, development, manufacturing, marketing and selling of modernized traditional Tibetan medicines in China. The Complaint asserts violations of the federal securities laws against Tibet, its officers and directors, and underwriters of the IPO for issuing allegedly inaccurate statements of material fact about the Company's financial and business condition, which ultimately caused trading of Tibet's stock to be halted and delisted by the NASDAQ, causing investors to lose nearly their entire investment. The Complaint alleges that defendants misrepresented and failed to disclose the Company's material internal control deficiencies, which rendered the Registration Statement and Prospectus materially false and misleading. Howard G. Smith, Esquire Law Offices of Howard G. Smith 3070 Bristol Pike Suite 112, Bensalem Pennsylvania 19020 Tel: 215-638-4847 E-mail: howardsmith@howardsmithlaw.com TRIDENT MICROSYSTEMS: Wants Until Aug. 31 to Propose Ch. 11 Plan ---------------------------------------------------------------- Trident Microsystems, Inc., et al., ask the U.S. Bankruptcy Court for the District of Delaware to extend their exclusive periods to file an solicit acceptances for the proposed chapter 11 plan until Aug. 31, 2012, and Oct. 30, 2012. The Debtors filed the motion before the exclusive plan filing period was set to expire on July 2. The Debtors explained that the extension requested will allow them to proceed with the preparation and submission of a confirmable chapter 11 plan. The Debtors further expect to be able to file the plan by early August 2012. The Debtors note that they working with their advisors and the Official Committee of Unsecured Creditors and the Committee of Trident Microsystems, Inc. Equity Security Holders' professionals to evaluate certain intercompany claims between TMI and TMFE. According to the Debtors, these claims are likely to have a significant impact on the classification and potential recovery of the Debtors' various parties in interest under any plan of liquidation. A hearing on Aug. 20 at 1 p.m. (EDT) has been set. Objections, if any, are due July 23, at 4 p.m. About Trident Microsystems Sunnyvale, California-based Trident Microsystems, Inc., currently designs, develops, and markets integrated circuits and related software for processing, displaying, and transmitting high quality audio, graphics, and images in home consumer electronics applications such as digital TVs, PC-TV, and analog TVs, and set- top boxes. The Company has research and development facilities in Beijing and Shanghai, China; Freiburg, Germany; Eindhoven and Nijmegen, The Netherlands; Belfast, United Kingdom; Bangalore and Hyderabad, India; Austin, Texas; and Sunnyvale, California. The Company has sales offices in Seoul, South Korea; Tokyo, Japan; Hong Kong and Shenzhen, China; Taipei, Taiwan; San Diego, California; Mumbai, India; and Suresnes, France. The Company also has operations facilities in Taipei and Kaoshiung, Taiwan; and Hong Kong, China. Trident Microsystems and its Cayman subsidiary, Trident Microsystems (Far East) Ltd. filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 12-10069) on Jan. 4, 2011. Trident said it expects to shortly file for protection in the Cayman Islands. Judge Christopher S. Sontchi presides over the case. Lawyers at DLA Piper LLP (US) serve as the Debtors' counsel. FTI Consulting, Inc., is the financial advisor. Union Square Advisors LLC serves as the Debtors' investment banker. PricewaterhouseCoopers LLP serves as the Debtors' tax advisor and independent auditor. Kurtzman Carson Consultants is the claims and notice agent. Trident had $310 million in assets and $39.6 million in liabilities as of Oct. 31, 2011. The petition was signed by David L. Teichmann, executive VP, general counsel & corporate secretary. UNIVERSAL BIOENERGY: Gets Final OK to Distribute Stock Dividend --------------------------------------------------------------- Universal Bioenergy, Inc., on June 6, 2012, passed a new Resolution to distribute a common stock dividend to its shareholders on a 10 for 2 basis. The Company received the final notification and confirmation from FINRA on June 29, 2012, announcing the final approval to distribute the common stock dividend to the Company's shareholders. The final notification is posted on FINRA's, OTC Bulletin Board Web site at www.otcbb.com, under the tab "Daily List", and the "Headlines By Date", 2012 Daily List Index for dividends for June 29, 2012. The Company will issue two shares of common stock for every 10 shares of common stock held by the shareholders of record in accordance with the following information and time frames; (a) Declaration Date: June 6, 2012 - Date the Board of Directors formally authorized the dividend. (b) Ex-Dividend Date: July 11, 2012 - The ex-dividend date is set by FINRA. (c) Record Date: July 13, 2012 - The dividend will be distributed only to registered "shareholders of record" on or before this date. (d) Payment Date: July 20, 2012 - Final date of payment or distribution of the dividend to the shareholders of record. (e) Freely tradable shares will be issued to all shareholders holding free trading shares as of the Record Date, e.g., shares held by CEDE as nominee. These shares will be issued in a hard certificate form without a legend. (f) Restricted shares in a hard certificate, (with a legend), will be issued to all shareholders with restricted shares as of the Record Date. (g) Shares in hard certificate form (with a legend), will be issued to all banks, stock brokerage houses and clearing agents. (h) No fractional shares will be issued for this dividend. All dividends will be rounded up to the nearest whole number of shares when fractional shares occur. No cash payments will be made for any fractional shares. The processing of the stock dividend should be completed by the transfer agent within 2 to 3 days after the Payment Date. The transfer agent is duly authorized to process the stock dividend and it has all of the instructions to distribute the shares. All freely tradable shares will be distributed, to the shareholders nominee such as a bank, broker dealer or the Depository Trust Company (DTC) through its partnership nominee CEDE & Company, for distribution to the broker dealers, who will deposit them into the accounts of the beneficial shareholders. Restricted shares will be issued in a hard certificate form and sent via certified mail to all shareholders with restricted shares as of the record date. In the event the DTC "Chill" is lifted prior to the dividend "Payment Date" of July 20, 2012, the Company would elect to have the stock distributed to these respective parties electronically via DWAC, if possible. The payment of a dividend in stock instead of cash helps the Company to maintain its cash and still reward the Company's shareholders with a dividend. Some shareholders may view this action as a potential for dilution and a devaluation of their shares, however the Company believes there are many valuable benefits to the Company's shareholders. The Company's shareholders will receive an immediate 20% increase in the quantity of the shares they own and a 20% return on their investment. The Company feels this will reward its loyal shareholders for their ongoing support, and to give them a greater stake in the Company. About Universal Bioenergy Universal Bioenergy Inc., is an alternative energy company headquartered in Irvine, California. The Company's new strategic direction is to develop and market a diverse product line of alternative and natural energy products including, natural gas, solar, biofuels, wind, wave, tidal, and green technology products. After auditing the 2011 results, Bongiovanni & Associates, CPA'S, in Cornelius, North Carolina, noted that the Company has suffered recurring operating losses, has an accumulated deficit, has negative working capital, and has yet to generate an internal cash flow that raises substantial doubt about its ability to continue as a going concern. The Company reported a net loss of $2.11 million in 2011, compared with a net loss of $2 million in 2010. The Company's balance sheet at March 31, 2012, showed $5.23 million in total assets, $4.38 million in total liabilities, and $850,781 in total stockholders' equity. VIEW SYSTEMS: Agrees to Buy ESG for 2 Million Shares ---------------------------------------------------- View Systems, Inc., entered into an asset purchase agreement with Essential Security Group of Toledo, Ohio, on June 1, 2012. ESG is an installer of the Company's View Scan units. The Company agreed to purchase all assets and liabilities of ESG for payment of two million shares of Company common stock to ESG's two principal shareholders with one million shares being due at closing and the balance due upon ESG's attainment of certain performance goals. ESG's principal shareholders, John P. Rademaker and David Loyer, will execute employment agreements and non-competition agreements with the Company as a condition of closing. Closing is scheduled for June 8, 2012. On June 28, 2012, the parties to asset purchase agreement executed an amendment to the agreement. The amendment imposes a floating closing date subject to completion of the Seller's delivery of required pre-closing items and the Company's completion of its due diligence inquiry of the Seller. The amendment also requires the Seller to obtain an audit of its financial statements and an audit opinion satisfactory to the Company. A copy of the Purchase Agreement is available for free at: http://is.gd/aD9qnM A copy of the Amended Agreement is available for free at: http://is.gd/9TR4Kg About View Systems Baltimore, Md.-based View Systems, Inc., develops, produces and markets computer software and hardware systems for security and surveillance applications. The Company reported a net loss of $368,329 on $576,735 of net revenues for the nine months ended Sept. 30, 2011, compared with a net loss of $294,065 on $722,042 of net revenues for the same period during the prior year. The Company's balance sheet at Sept. 30, 2011, showed $1.48 million in total assets, $1.82 million in total liabilities, and a $339,294 total stockholders' deficit. As reported in the TCR on March 15, 2011, Robert L. White & Associates, Inc., in Cincinnati, Ohio, expressed substantial doubt about View Systems' ability to continue as a going concern, following the Company's 2010 results. The independent auditors noted that the Company had a net loss of $513,353 for the year ended Dec. 31, 2010, and has an accumulated deficit of $22,837,787 at Dec. 31, 2010. VITRO SAB: Bondholders Request Ability to Seize Assets ------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Vitro SAB bondholders will have won the war with the Mexican glassmaker if they are allowed to begin seizing assets before the U.S. Court of Appeals rules on whether a bankruptcy judge was correct in concluding that the Mexican reorganization plan shouldn't be enforced in the U.S. The report recounts that in June, a bankruptcy judge in Dallas wrote an opinion saying that Vitro's Mexican reorganization plan was "manifestly contrary" to U.S. law and public policy because it reduced the liability of subsidiaries on $1.2 billion in defaulted bonds, even though the Vitro parent alone was in bankruptcy. Vitro appealed to the U.S. Court of Appeals in New Orleans. The bankruptcy judge, the report relates, told Vitro to obtain a stay pending appeal from the circuit court if the company wanted to stop bondholders from seizing assets after June. According to the report, the bondholders filed papers this week in the appeals court arguing against an injunction. The bondholders contend they should be permitted to begin seizing assets immediately because the company and its subsidiaries "evaded payment for over three years, during which time Vitro has engaged in a pattern of transferring assets and other schemes to shirk its obligations." Laying out the facts, the bondholders characterize Vitro as having concocted an "illicit scheme" to "manufacture claims" so the subsidiaries "could vote in the Mexican proceeding to eliminate their own guaranties." Elsewhere in this week's brief, the bondholders contend they "had no opportunity in the Mexican proceeding to take discovery, present witnesses, or cross-examine opposing witnesses." To be awarded a stay pending appeal, Vitro must show "irreparable harm" will result. The bondholders argue that debt collection doesn't constitute irreparable harm, else "federal courts would be issuing injunctions against ordinary debt collection activities on a daily basis." If Vitro wants a prohibition against seizing assets in the U.S. even though the Mexican bankruptcy was rejected, the bondholders told the appeals court that Vitro should post a bond or put the subsidiaries into their own bankruptcies. The bondholders state that they are offered a 40 percent recovery in the Mexican bankruptcy, even though Vitro's shareholders are retaining ownership worth $500 million. The appeal in the Circuit Court is Vitro SAB de CV v. Ad Hoc Group of Vitro Noteholders (In re Vitro SAB de CV), 12-10689, U.S. Court of Appeals for the Fifth Circuit (New Orleans). The suit in bankruptcy court where the judge decided not to enforce the Mexican reorganization in the U.S. is Vitro SAB de CV v. ACP Master Ltd. (In re Vitro SAB de CV), 12-03027, U.S. Bankruptcy Court, Northern District of Texas (Dallas). The bondholders' previous appeal in the circuit court is Ad Hoc Group of Vitro Noteholders v. Vitro SAB de CV (In re Vitro SAB de CV), 11-11239, U.S. Court of Appeals for the Fifth Circuit (New Orleans). 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. On June 13, 2012, U.S. Bankruptcy Judge Harlin "Cooter" Hale in Dallas entered a ruling that precluded Vitro from enforcing its Mexican reorganization plan in the U.S. The judge ruled that the Mexican reorganization was "manifestly contrary" to U.S. public policy because it bars the bondholders from holding Vitro operating subsidiaries liable to pay on their guarantees of the bonds. The Mexican plan reduced the debt of subsidiaries on $1.2 billion in defaulted bonds even though they weren't in bankruptcy in any country. VOLKSWAGEN-SPRINGFIELD: Wants BB&T's Stay Relief Motion Denied -------------------------------------------------------------- Volkswagen-Springfield, Inc., asks the U.S. Bankruptcy Court for the Eastern District of Virginia to deny Branch Banking and Trust Company's motion for relief from stay. BB&T is the Debtor's primary prepetition lender. BB&T, in its motion, asserted that its position is secured by substantially all of the assets of the Debtor well as non-Debtor assets of the Debtor's principal. BB&T claims that it is owed $18 million exclusive of professional fees and expenses. According to the Debtor, (i) BB&T is adequately protected and there is no cause to grant relief from the stay; and (ii) the Debtor has equity in the collateral property and the collateral property is necessary for an effective reorganization. About Volkswagen-Springfield Springfield, Virginia-based Volkswagen-Springfield, Inc., filed a Chapter 11 petition (Bankr. E.D. Va. Case No. 12-12905) in Alexandria on May 7, 2012. The Debtor operates one of the largest Volkswagen franchised dealerships in the Mid-Atlantic region. The Debtor estimated assets and debts of $10 million to $50 million as of the Chapter 11 filing. Judge Robert G. Mayer oversees the case. The Debtor is represented by Dylan G. Trache, Esq., and John T. Farnum, Esq., at Wiley Rein LLP, in McLean, Virginia. Pursuant to recent default notices, Branch Banking and Trust Company has asserted that it is owed $19.6 million. Jonathan L. Hauser, Esq., at Troutman Sanders LLP, represents BB&T. No creditors' committee has yet been appointed in the case. VUZIX CORP: Borrows $619,122 from LC Capital Under Amended Pact --------------------------------------------------------------- Vuzix Corporation entered into an Amended and Restated Convertible Loan and Security Agreement with LC Capital Master Fund Ltd., pursuant to which the LC Capital loaned the Company $619,122. The Loan Agreement is an amendment and restatement of a Convertible Loan and Security Agreement between the Lender and the Company dated as of Dec. 23, 2010, which was filed with the Commission on Form 8-K on Dec. 30, 2010. The Loan is an amendment, restatement, renewal, extension and modification of the remaining principal balance and interest thereon of the loan made by the Lender to the Company pursuant to the Original Loan Agreement. The Loan bears interest at an annual rate of 13.5% per annum, payable monthly commencing July 15, 2012. The principal of the Loan is payable in 12 equal monthly installments of $51,593.50 each beginning on Oct. 15, 2012. Concurrently with the making of the Loan, the Company entered into an Asset Purchase Agreement with TDG Acquisition Company, which was filed with the Commission on Form 8-K on June 22, 2012. The Company may receive certain earn out payments pursuant to the APA and, if it does, the Company is required to pay 40% of all amount so received in prepayment of the Loans. The principal balance of, and unpaid accrued interest on, the Loan are convertible into shares of the $.001 par value common stock of the Company at a conversion price of $0.09965 per share, subject to adjustment. The Company previously issued to the Lender a Warrant to purchase up to 40,000,000 shares of Common Stock at an exercise price of $0.09965 per share, subject to adjustment. That Warrant expires on Dec. 23, 2014. The maximum number of shares of Common Stock that the Lender can acquire upon conversion of the Note and exercise of the Warrant is 46,517,695, subject to adjustment. The Lender has certain registration rights, and Registrant has certain registration obligations, as set forth in the Original Loan Agreement . The Company has granted the Lender a security interest in substantially all the assets of Registrant as security for the Loan. The Lender has agreed to subordinate its security interest in accounts receivable and inventory to a security interest granted by the Company to a bank or other institutional provider of lines of credit, of not more than $2,000,000. In connection with the execution of the Loan Agreement, the Promissory Note and Security Agreement between the Company and the Lender dated May 18, 2012, were terminated. Concurrently with the execution and delivery of the Loan Agreement, the Company executed and delivered to the Lender its Convertible Promissory Note dated June 15, 2012, in the principal amount of $619,122. A copy of the Amended Loan Agreement is available for free at: http://is.gd/hYGJ2C About Vuzix Corp. Rochester, New York-based Vuzix Corporation (TSX-V: VZX) OTC BB: VUZI) -- http://www.vuzix.com/-- is a supplier of Video Eyewear products in the defense, consumer and media & entertainment markets. The Company reported a net loss of $3.87 million in 2011, a net loss of $4.55 million in 2010, and a net loss of $3.25 million in 2009. The Company's balance sheet at Dec. 31, 2011, showed $5.81 million in total assets, $12.64 million in total liabilities, and a $6.82 million total stockholders' deficit. After auditing the 2011 annual report, EFP Rotenberg, LLP, in Rochester, New York, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred substantial losses from operations in recent years. In addition, the Company is dependent on its various debt and compensation agreements to fund its working capital needs. And while there are no financial covenants with which the Company must comply with, these debts are past due in some cases. Bankruptcy Warning The Company said in its 2011 annual report that its future viability is dependent on its ability to execute these plans successfully. If the Company fails to do so for any reason, the Company would not have adequate liquidity to fund its operations, would not be able to continue as a going concern and could be forced to seek relief through a filing under U.S. Bankruptcy Code. WPCS INTERNATIONAL: Appoints C. Benton to Board of Directors ------------------------------------------------------------ WPCS International Incorporated has announced the appointment of Charles F. Benton as a director effective July 1, 2012. Mr. Benton has over thirty years of experience in finance, operations and business development with major corporations. Currently, he directs the distribution services and supply chain for Charming Shoppes, Inc., which is a leading national specialty retailer of women's apparel operating 1,832 retail stores in 48 states. Mr. Benton also worked twenty years for Consolidated Rail Corporation (CONRAIL) where he was responsible for finance, operations and business development. He is a graduate of St. Joseph's University with a degree in accounting. He resides in Wynnewood, Pennsylvania. Andrew Hidalgo, Chairman and CEO of WPCS International Incorporated commented, "We are very pleased to have Charlie join our board of directors. Throughout his career at Charming Shoppes and CONRAIL, he has been a significant contributor to the growth and cost efficiency of each company. Here at WPCS, his leadership and vision will be a valuable asset in the areas of business development and financial reporting. I look forward to his involvement as we continue to focus on building shareholder value." About WPCS International Exton, Pennsylvania-based WPCS International Incorporated provides design-build engineering services that focus on the implementation requirements of communications infrastructure. The Company provides its engineering capabilities including wireless communication, specialty construction and electrical power to the public services, healthcare, energy and corporate enterprise markets worldwide. As reported by the TCR on Dec. 8, 2011, WPCS International and its United Stated based subsidiaries, previously entered into a loan agreement, dated April 10, 2007, as extended, modified and amended several times, with Bank of America, N.A. The Company is seeking alternative debt financing and has conducted discussions with other senior lenders to replace the Loan Agreement. The Company may not be successful in obtaining alternative debt financing or additional financing sources may not be available on acceptable terms. If the Company is required to repay the Loan Agreement, the Company has sufficient working capital to repay the outstanding borrowings. The Company reported a net loss attributable to WPCS of $12.02 million for the nine months ended Jan. 31, 2012, compared with a net loss attributable to WPCS of $9.80 million for the same period during the prior year. The Company's balance sheet at Jan. 31, 2012, showed $37.69 million in total assets, $23.21 million in total liabilities, and $14.48 million in total equity. * McKooL Smith Co-Founder Named 2012 "Trial Lawyer of the Year" --------------------------------------------------------------- Mike McKool, co-Founder and Chairman of McKool Smith, has been named the 2012 "Trial Lawyer of the Year" by the Dallas Bar Association (DBA). Mr. McKool will receive the award during the DBA's annual Bench Bar Conference in Horseshoe Bay, Texas, on Sept. 27-29, 2012. The prestigious award is presented annually to a DBA member who best exemplifies the principles of the legal profession and who has achieved extraordinary success in the courtroom. "Mike McKool is an excellent trial lawyer," said Paul K. Stafford, President of the Dallas Bar Association. "[He is] an example of all that is good in our profession--inquisitive by nature, committed to excellence, effective, and ethical in and out of the courtroom." Mr. McKool has earned a national reputation for rigorous case preparation and superlative trial skills. During his legal career of more than 30 years, he has secured billions of dollars in verdicts and settlements for clients. Since founding McKool Smith in 1991, his leadership and courtroom achievements have helped the firm grow from an 11-attorney litigation boutique in Dallas to a national litigation powerhouse with 175 trial lawyers. He is consistently recognized as one of the top litigators in the country by leading legal publications, including The Legal 500, Lawdragon, and Chambers USA, where he is ranked as a leading national trial lawyer and "Band 1" in commercial litigation and intellectual property litigation. He is also ranked as a "Band 1" patent litigator in the United States by Chambers Global. Mr. McKool is a Fellow of the American College of Trial Lawyers, a member of the Advisory Council of the Federal Circuit, and serves on the Advisory Board for the "Patent Case Management Judicial Guide," used by federal district judges. With more than 170 trial lawyers across offices in Austin, Dallas, Houston, Los Angeles, Marshall, New York, Silicon Valley, and Washington, DC, McKool Smith has established a reputation as one of America's leading trial firms. The firm has won more National Law Journal and VerdictSearch "Top 100 Verdicts" over the last five years than any other law firm. McKool Smith represents leading clients across a broad range of practice areas, including complex commercial litigation, intellectual property, bankruptcy, and white collar defense. * Kramer Levin's Wins Healthcare Services Turnaround Atlas Award ---------------------------------------------------------------- Kramer Levin Naftalis & Frankel received a Turnaround Atlas Award Tuesday night for the firm's work as debtor's counsel for Saint Vincent Catholic Medical Centers of New York. The complex bankruptcy transaction was named "Healthcare Services Turnaround of the Year" at the annual awards gala in Chicago. The Saint Vincent's Chapter 11 plan, which the U.S. Bankruptcy Court for the Southern District of New York confirmed, provides for a 100 percent recovery for administrative, priority creditors and secured lenders, and a substantial recovery by the employees and pensioners. Saint Vincent's successfully consummated several going-concern sales of its healthcare services, preserving critical patient care needs in the communities served by the hospital system. During the case, the Saint Vincent's management and legal team negotiated a $260 million sale of the Manhattan Hospital campus with the Rudin Family, which includes a requirement for opening a new comprehensive care center, including a precedent-setting free-standing emergency department, by North Shore-LIJ hospital. The Kramer Levin team was led by partners Kenneth H. Eckstein and Adam C. Rogoff. The team also included partner P. Bradley O'Neill, special counsel Gregory G. Plotko and associate Anupama Yerramalli. Kramer Levin worked on the matter with Grant Thornton LLP, which provided the interim management team led by Mark E.Toney and Steven Korf. The Global M&A Network presents the annual turnaround awards to honor top performances from the distressed M&A, restructurings, reorganizations and the turnaround communities, worldwide. Kramer Levin also was honored with the "Chapter 11 Reorganization Deal of the Year" (Large Markets) award for the firm's representation of Capmark Financial Group Inc. In addition, the St. Vincent's transaction previously won M&A Advisor's 6th Annual Turnaround Awards for "Turnaround Community Impact Deal of the Year" and "Healthcare/Life Sciences Deal of the Year." Kramer Levin Naftalis & Frankel LLP -- http://www.kramerlevin.com -- is a full-service law firm with offices in New York, Silicon Valley and Paris. The firm represents Global 1000 and emerging growth companies, institutions and individuals, across a broad range of industries. * Pearson Butler Recognized by National Trial Lawyers Top 40 ------------------------------------------------------------ Matthew Kober, a personal injury lawyer in Utah, received an invitation for national membership into The National Trial Lawyers: Top 40 Under 40. In addition, Mr. Kober completed all necessary requirements to be certified as a Motor Vehicle Occupant Injury Specialist by the Personal Injury Training Institute. "Matthew Kober is the only lawyer in Utah we are aware of to hold both of these achievements. We are very proud that Matthew is being recognized nationally for his legal ability," said attorney Jeff Butler, founding partner at Pearson Butler, PLLC. "The combination of advanced personal injury training and his litigation experience makes Matthew one of the best personal injury lawyers in Utah and we are grateful that he is part of the firm." The advanced certificate awarded by the Personal Injury Training Institute has only been awarded to three other attorneys in the State of Utah. Qualification for this certificate requires extensive training and allows Matthew to have a unique understanding of what types of injuries happen in an auto accident. "I have been involved in personal injury since 1985 as a physician, client, expert witness, and instructor. I created PITI to assist professionals to better serve those that hire them," said Dr. Jeffrey A. States, director of the Personal Injury Training Institute. "I strongly recommend those injured in car accidents to seek help only from doctors and lawyers with advanced training in this specific industry. Make the choice to choose the best in personal injury." The Top 40 Under 40 award is in invitation-only award that is extended exclusively to trial lawyers who exemplify superior qualifications, trial results, and leadership as a young trial lawyer. This award distinguishes Matthew as a top personal injury attorney who is not afraid to take cases to trial when necessary and force the insurance companies to make fair settlement offers. "Matthew Kober strives to improve his practice as a personal injury lawyer in Utah, as evidenced by his willingness to get certified by the Personal Injury Training Institute," adds attorney Jeff Butler. "The personal injury law practice continues to change; and Matthew's training helps him find additional ways to advocate for his clients." Mr. Kober practices with the law firm of Pearson Butler, PLLC, in South Jordan, Utah. His practice areas include helping victims in auto accidents, truck accidents, bicycle accidents, slip and falls, dog bites, and wrongful death, among others. The law firm of Pearson Butler, PLLC, has expanded to 11 attorneys who practice in a variety of areas: bankruptcy law, including Chapter 7, Chapter 11, and Chapter 13 filings; real estate, including commercial work out and residential short sale assistance; family law, including adoption, divorce and custody matters; criminal law, including DUI and felony matters; estate planning, including wills and living trusts; business law, including corporations law, entity formation, contract enforcement, and business wind down; and civil litigation, handling a variety of litigation matters. Pearson Butler, PLLC, has law offices in the Salt Lake City metro area of South Jordan and in Layton, Utah. * BOOK REVIEW: Performance Evaluation of Hedge Funds ---------------------------------------------------- Edited by Greg N. Gregoriou, Fabrice Rouah, and Komlan Sedzro Publisher: Beard Books Hardcover: 203 pages Listprice: $59.95 Review by Henry Berry Hedge funds can be traced back to 1949 when Alfred Winslow Jones formed the first one to "hedge" his investments in the stock market by betting that some stocks would go up and others down. However, it has only been within the past decade that hedge funds have exploded in growth. The rise of global markets and the uncertainties that have arisen from the valuation of different currencies have given a boost to hedge funds. In 1998, there were approximately 3,500 hedge funds, managing capital of about $150 billion. By mid-2006, 9,000 hedge funds were managing $1.2 trillion in assets. Despite their growing prominence in the investment community, hedge funds are only vaguely understood by most people. Performance Evaluation of Hedge Funds addresses this shortcoming. The book describes the structure, workings, purpose, and goals of hedge funds. While hedge funds are loosely defined as "funds with no rules," the editors define these funds more usefully as "privately pooled investments, usually structured as a partnership between the fund managers and the investors." The authors then expand upon this definition by explaining what sorts of investments hedge funds are, the work of the managers, and the reasons investors join a hedge fund and what they are looking for in doing so. For example, hedge funds are characterized as an "important avenue for investors opting to diversify their traditional portfolios and better control risk" -- an apt characterization considering their tremendous growth over the last decade. The qualifications to join a hedge fund generally include a net worth in excess of $1 million; thus, funds are for high net-worth individuals and institutional investors such as foundations, life insurance companies, endowments, and investment banks. However, there are many individuals with net worths below $1 million that take part in hedge funds by pooling funds in financial entities that are then eligible for a hedge fund. This book discusses why hedge funds have become "notorious as speculating vehicles," in part because of highly publicized incidents, both pro and con. For example, George Soros made $1 billion in 1992 by betting against the British pound. Conversely, the hedge fund Long-Term Capital Management (LTCP) imploded in 1998, with losses totalling $4.6 billion. Nonetheless, these are the exceptions rather than the rule, and the editors offer statistics, studies, and other research showing that the "volatility of hedge funds is closer to that of bonds than mutual funds or equities." After clarifying what hedge funds are and are not, the book explains how to analyze hedge fund performance and select a successful hedge fund. It is here that the book has its greatest utility, and the text is supplemented with graphs, tables, and formulas. The analysis makes one thing clear: for some investors, hedge funds are an investment worth considering. Most have a demonstrable record of investment performance and the risk is low, contrary to common perception. Investors who have the necessary capital to invest in a hedge fund or readers who aspire to join that select club will want to absorb the research, information, analyses, commentary, and guidance of this unique book. Greg N. Gregoriou teaches at U. S. and Canadian universities and does research for large corporations. Fabrice Rouah also teaches at the university level and does financial research. Komlan Sedzro is a professor of finance at the University of Quebec and an advisor to the Montreal Derivatives Exchange. ********* 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 ***