TCR_Public/120809.mbx          T R O U B L E D   C O M P A N Y   R E P O R T E R

             Thursday, August 9, 2012, Vol. 16, No. 220

                            Headlines

804 CONGRESS: Subject Matter Jurisdiction Ends Upon Foreclosure
A123 SYSTEMS: Has $450MM Deal With Chinese Auto-Parts Firm
ACUNETX INC: Files for Chapter 7 Liquidation
ADELPHIA COMMS: NextEra Energy Awaits Outcome of Trial
AEROCAST INTERNATIONAL: Case Summary & Creditors List

AFCO TECHNOLOGIES: Case Summary & 20 Largest Unsecured Creditors
AHERN RENTAL: Court Extends Plan Exclusivity, Names Mediator
ALLY FINANCIAL: Files Form 10-Q, Incurs $898 Million Loss in Q2
AMARANTH INC: Voluntary Chapter 11 Case Summary
AMERICAN AIRLINES: Has Settlement With Bond Trustees

AMERICAN AIRLINES: Westinghouse Opposes N632AA Settlement
AMERICAN AIRLINES: Wants More Time to Decide on 15 Leases
AMERICAN AIRLINES: Settles With Miami-Dade County
AMERICAN AIRLINES: Seeks Court OK to Buy 11 Boeing 737 Aircraft
AMERICAN CRANE: Case Summary & 20 Largest Unsecured Creditors

AMERICAN NATURAL: Sells 7 Million Common Shares for US$420,000
ARCTIC GLACIER: S&P Assigns 'B-' Corp. Credit Rating
APPLETON PAPERS: Widens Net Loss to $48.8-Mil. in Second Quarter
BEEBE MEDICAL: Moody's Reviews 'Ba3' Rating; Direction Uncertain
BENADA ALUMINUM: Has Green Light to Pay Employees, Taxes

BERNARD L. MADOFF: Daughter In-Laws Fight 'Insider' Label
BG GROUP: Asks Justices to Review $185-Mil. Award Reversal
BICENT HOLDINGS: Wins Prepack Plan Confirmation in Three Months
BRUCE BURROW: Files for Chapter 11 Bankruptcy Protection
CAESARS ENTERTAINMENT: Widens Net Loss to $241.8MM in 2nd Quarter

CANO PETROLEUM: Plan Effective; Emerges from Bankruptcy
CASTLEGATE GARAGE: Case Summary & 20 Largest Unsecured Creditors
CATALYST PAPER: Incurs C$11.7 Million Net Loss in Second Quarter
CHINA DELIGHT: Voluntary Chapter 11 Case Summary
COLONIAL BANCGROUP: Seeks OK for $15MM Loan to Fight FDIC Claims

COMMERCIAL CABINETRY: Case Summary & 20 Largest Unsec Creditors
COMMUNITY FIRST: FRB Atlanta OKs Jon Thompson as VP and CFO
COMMUNITY HEALTH: S&P Rates New $1.25-Bil. Sr. Secured Notes 'BB'
CONNOLLY LLC: S&P Gives 'B' Corp. Credit Rating; Outlook Stable
CONVERTED ORGANICS: Has 258.8 Million Outstanding Common Shares

CORNERSTONE HEALTHCARE: S&P Assigns 'B' Corp. Credit Rating
CROSS ISLAND PLAZA: Chapter 11 Plan Filed
DAYTOP VILLAGE: Gets Short Exclusivity Extension Thru Nov. 1
DAYTOP VILLAGE: Hires Broker to Sell 4 Outpatient Facilities
DAYTOP VILLAGE: Taps Former FBI's Firm as Security Consultant

DEWEY & LEBOEUF: Sec. 341 Creditors' Meeting Next Wednesday
DEWEY & LEBOEUF: Court OKs Togut Firm as Bankruptcy Counsel
DEWEY & LEBOEUF: Dev't. Specialists OK'd as Wind Down Consultant
DEWEY & LEBOEUF: Epiq Bankruptcy OK'd as Administrative Advisor
DEWEY & LEBOEUF: Goldin Associates OK'd as Special Consultant

DEWEY & LEBOEUF: Extends Deadline for Clawback Deal to Aug. 13
DIS PARTNERS: Case Summary & 20 Largest Unsecured Creditors
DRC BUSINESS: Voluntary Chapter 11 Case Summary
DUMEK HOLDINGS: Case Summary & Largest Unsecured Creditor
DYNEGY INC: Files Form 10-Q, Incurs $1 Billion Net Loss in Q2

E-DEBIT GLOBAL: Incurs $28,900 Net Loss in Second Quarter
EASTMAN KODAK: Judge Approves Incentive Plan to 12 Top Execs
ELEGANT SURFACES: Voluntary Chapter 11 Case Summary
ENDO HEALTH: Moody's Says Share Repurchase Program Credit Neg.
ENERGY CONVERSION: Confirms 50% Liquidating Plan

EVERGREEN SOLAR: Plan Confirmed and Implemented
FAIR FINANCE: Textron Bid to Dismiss Trustee Suit Remains Pending
FANNIE MAE: In Talks With BofA Over Bad Mortgages
FRANKLIN CREDIT: Aug. 2 Established as Distribution Record Date
FREEDOM MARINE: Voluntary Chapter 11 Case Summary

FRIENDFINDER NETWORKS: Sells Shares of Holdings to Acquisition
GERALD CHAMPION: Chapter 11 Plan Wins Judge Approval
GIBSON GUITAR: Wood Importing Issue No Impact on Moody's B2 CFR
GLOBAL FOOD: Incurs $797,000 Net Loss in Second Quarter
GOLDWOOD INVESTMENT: Case Summary & Largest Unsecured Creditor

GRAHAM SLAM: Lender Takes 3 Lots; Unsecureds to Be Paid in 3 Years
GRATON ECONOMIC: S&P Rates $350MM Loan & $450MM Secured Notes 'B'
GRAYSON EXCHANGE: Case Summary & 6 Largest Unsecured Creditors
GREEK PEAK: $1.6MM FDIC Loan Allows Operations Through This Winter
GRUBB & ELLIS: Avison Young Poached Employees, BGC Says

HAMPTON ROADS: Commences $45 Million Rights Offering
HASSEN REAL ESTATE: Plan Exclusivity Extended Until Nov. 15
HEALTHCARE OF FLORENCE: E&M Consented to Cash Use
HERCULES OFFSHORE: Has $36MM Share Purchase Pact with Integradora
HOMELAND POWERSOURCE: Case Summary & 8 Largest Unsecured Creditors

HOSTESS BRANDS: Court OKs Delayed Payment of Pension Claims
IDEARC INC: Verizon Bid to Shake Fraudulent Transfer Claims Denied
INGRAM MICRO: Moody's Rates Preferred Stock Shelf '(P)Ba2'
INNOVATION VENTURES: S&P Assigns 'B-' Corp. Credit Rating
IRON MOUNTAIN: Moody's Rates $950MM Sr. Subordinated Notes 'B1'

IRON MOUNTAIN: S&P Affirms 'BB-' Corp. Credit Rating; Outlook Neg
JANLAW PROPERTIES: Voluntary Chapter 11 Case Summary
K-V PHARMACEUTICAL: Class A&B Common Stock Begin Trading
KNIGHT CAPITAL: Turned Down Rival Citadel's $500-Mil. Loan Offer
LEAGUE NOW: M. Barton Quits from Board; J. Charles Fills Vacancy

LEVEL 3: Files Form 10-Q; Incurs $62 Million Net Loss in Q2
LEVEL 3: Completes Offering of $300 Million Senior Notes
LON MORRIS: $750,000 Amegy Bank DIP Loan Approved
LORING ESTATES: Four More Kontogiannis Entities File Chapter 11
LORING ESTATES: Case Summary & Unsecured Creditors

LOWER BUCKS: BNY Appeals Court Decision Over $8 Million Claim
LUCID INC: Marcum LLP Succeeds Deloitte & Touche as Accountants
MACROSOLVE INC: Sells Illume Mobile to DecisionPoint Systems
MBS MGT: Forward Contract Given Broad Meaning for Safe Harbor
MCCLATCHY CO: Files Form 10-Q, Reports $26.9MM Net Income in Q2

MEDICAL CONNECTIONS: Signs Purchase Agreement with Trustaff
METROPLEX LUCKY: Voluntary Chapter 11 Case Summary
MF GLOBAL: ConocoPhillips Fights $205MM Clawback Bid
MF GLOBAL: Judicial Watch Sues SEC, CFTC Over MF Collapse
MMRGLOBAL INC: Reports Unregistered Sales of Equity Securities

MOMENTIVE PERFORMANCE: Amends $525.6-Mil. Common Shares Offering
MORGAN'S FOODS: James Pappas Hikes Stake to 15.8%
MRW ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors
MSR RESORT: Winthrop Realty Won't Back Paulson Chapter 11 Plan
MUSCLEPHARM CORP: Amends 84.4 Million Common Shares Offering

NAB HOLDINGS: S&P Assigns 'BB-' Corporate Credit Rating
NASSAU BROADCASTING: Seeks Extension to File Payment Plan
NAVISTAR INT'L: S&P Rates New $1-Bil. Secured Loan 'B+'
NEXTWAVE WIRELESS: Has Forbearance with Notes Holders Until 2014
NGPL PIPECO: S&P Rates $700MM Senior Secured Term Loan 'B+'

NORTEL NETWORKS: Aims to Expunge Affiliate Claims in March
NORTHERN STAR: Enters Deal With Ely Gold on Notes Acquisition
NUANCE COMMUNICATIONS: S&P Affirms 'BB-' Corporate Credit Rating
OMEGA NAVIGATION: Files 'New Value' Chapter 11 Plan
ONE CALL: Moody's Assigns 'B2' CFR/PDR; Outlook Stable

ORAGENICS INC: Randal Kirk Discloses 19.5% Equity Stake
OTOLOGICS LLC: Auction Set for Sept. 4; Sale Hearing Next Day
PEAK RESORTS: Case Summary & 20 Largest Unsecured Creditors
PEMCO WORLD: Hearing Today on Sale to Sun Capital
PEMCO WORLD: Former Employees Lodge WARN Suit Over Mass Layoffs

PEREGRINE FINANCIAL: Trustee Can Subpoena Firm's Banks
PINNACLE AIRLINES: Says Shareholders of Jeopardizing Restructuring
PINNACLE HOLDCO: S&P Gives 'B' Corp. Credit Rating; Outlook Stable
PLYMOUTH OIL: Secured Creditors Fail to Block Cash Use
PLYMOUTH OIL: Hiring BrownWinick as Bankruptcy Counsel

PLYMOUTH OIL: Sec. 341 Creditors' Meeting Set for Aug. 29
PROVIDENT COMMUNITY: Posts $143,000 Net Income in Second Quarter
PORTER BANCORP: Signs Employment Agreement with John Taylor
RAINBOW LAND: Has Court's Nod to Hire Alan R. Smith as Counsel
REOSTAR ENERGY: Judge Denies Former Execs' Bid to Shake Suit

RESIDENTIAL CAPITAL: Automatic Stay Is 'Shield,' Not 'Sword'
RESIDENTIAL CAPITAL: Judge Gonzalez's Probe to Cost Up to $36MM
RIDGE MOUNTAIN: Has OK to Hire Harris Beach as Bankruptcy Counsel
RIDGE MOUNTAIN: US Bank Wants Daniel Ford to Continue as Receiver
ROCK LAW: Case Summary & 5 Unsecured Creditors

RON M. LAWRENCE: Voluntary Chapter 11 Case Summary
ROSETTA GENOMICS: Offering 5.5 Million of Ordinary Shares
SABANA DEL PALMAR: Case Summary & 20 Largest Unsecured Creditors
SANTA YSABEL RESORT: Lender Seeks Chapter 11 Case Dismissal
SDA INC: Files Schedules of Assets and Debts

SHEA LTD: Voluntary Chapter 11 Case Summary
SIGNATURE GROUP: Company-Nominees Officially Elected to Board
SIRIUS INT'L: Fitch Affirms 'BB+' Rating on $250MM Pref. Shares
SL GREEN: S&P Gives 'B+' Rating on $100MM Series I Preferred Stock
SNK ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors

SOLYNDRA LLC: Plan Justifies Exclusivity Through August
ST. JOHN'S RIVERSIDE: S&P Raises Rating on Revenue Debt to 'B+'
STEREOTAXIS INC: Posts $2.8 Million Net Income in Second Quarter
STOCKTON, CA: Judge Powerless to Reinstate Health Benefits
STONEY'S NORTH: Bankruptcy Filing Blocks Eviction Proceeding

SUNFLOWER HOSPITALITY: Voluntary Chapter 11 Case Summary
T3 MOTION: Due Date of JMJ Financial Note Extended to August 3
TANNIN INC: Brantley & Associates OK'd for Real Estate Appraisal
TFG PROPERTIES: Case Summary & 2 Largest Unsecured Creditors
TEXAS LAND: Case Summary & 3 Largest Unsecured Creditors

THELEN LLP: Judge OKs Case Trustee's Clawback Deal With Ex-Partner
THERATECHNOLOGIES INC: Gets Minimum Bid Price Notice
TRAVELPORT HOLDINGS: Antonios Basoukeas Named Group Vice Pres.
TRI-VALLEY: In Chapter 11; DIP Lenders Require Quick Sale
TRIUS THERAPEUTICS: Incurs $14.4-Mil. Net Loss in Second Quarter

TRONOX INC: Shareholders Suit Settled Against Kerr-McGee
VERENIUM CORP: Incurs $2.5 Million Net Loss in Second Quarter
VIRANI & MANAV: Case Summary & 12 Largest Unsecured Creditors
WATSON VENTURES: Case Summary & 4 Unsecured Creditors
WHOLE FOODS: S&P Raises Corporate Credit Rating From 'BB+'

WILTON HOLDINGS: S&P Assigns 'B' Corp. Credit Rating
WINDMILL INVESTMENT: Case Summary & 4 Largest Unsecured Creditors
WOOTON GROUP: Hires M. Jonathan Hayes as Bankruptcy Counsel
WOOTON GROUP: Files Schedules of Assets and Liabilities
ZIMCAL CORPORATION: Voluntary Chapter 11 Case Summary

* Eviction Warrant Alone Doesn't Terminate Lease
* Circuit Court Clarifies Procedures for Recoupment
* Student Loan Debt Must Be Paid Like Other Claims

* Moody's Sees High Refinancing Risk for Low-Rated Debt Issuers
* Moody's Sees High Re-Default Risk After Distressed Exchanges
* Bankruptcy Filings Fall 12 Percent in July 2012

* Recent Small-Dollar & Individual Chapter 11 Filings

                             *********

804 CONGRESS: Subject Matter Jurisdiction Ends Upon Foreclosure
---------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist at Bloomberg News, reports
that a U.S. District Court in Austin, Texas, ruled that once a
bankruptcy judge modifies the automatic stay to allow foreclosure,
the bankruptcy court lacks subject matter jurisdiction after the
foreclosure sale to decide how proceeds should be distributed.

According to the report, the case involved a company in Chapter 11
where the bankruptcy court modified the so-called automatic stay
permitting the lender to sell the property through non judicial
foreclosure for more than $4 million.  After the sale was
completed, the trustee under the deed of trust claimed a 5% fee,
and the lender contended it was entitled to recover $83,000 in
attorneys' fees expended in foreclosure.  Both were based on
provisions in the deed of trust.

The report notes the bankruptcy judge reduced the deed of trust
trustee's fee and the attorneys' fee reimbursement, thus
increasing the surplus paid to the company still in Chapter 11.
The trustee under the deed of trust and the bank both appealed and
won.  U.S. District Judge Lee Yeakel in Austin ruled in his March
28 opinion that the bankruptcy court lost subject matter
jurisdiction over foreclosure sale proceeds once the sale was
completed, because the "proceeds were governed by state law."

Mr. Rochelle notes that the opinion doesn't explain why subject
matter jurisdiction ended when the property was sold nor does it
address the question of whether the bankruptcy court retained
"related-to" jurisdiction.  The opinion nonetheless may have
reached the correct result for the wrong reason.

The case is Wells Fargo Bank NA v. 804 Congress LLC (In re
804 Congress LLC), 11-360, U.S. District Court, Western District
Texas (Austin).

804 Congress, LLC, formerly doing business as 804 Congress, LP,
filed a Chapter 11 petition (Bankr. W.D. Tex. Case No. 10-12184)
on Aug. 3, 2010 in Austin.  The Debtor is represented by Stephen
W. Sather, Esq., at Barron & Newburger, P.C.  The Debtor scheduled
$7,002,265 in assets and $4,140,910 in liabilities.


A123 SYSTEMS: Has $450MM Deal With Chinese Auto-Parts Firm
----------------------------------------------------------
The Wall Street Journal's Mike Ramsey reports that Wanxiang Group
Corp., one of China's biggest parts makers, on Wednesday offered a
$450 million lifeline to A123 Systems Inc., a maker of advanced
batteries for electric vehicles that received U.S.-government
backing, saving the Company from collapse.  The deal would put
A123's lithium-ion technology and its U.S.-funded manufacturing
plant into the hands of a Company that has slowly acquired a
passel of auto assets across the Midwest.

WSJ notes Waltham, Massachusetts-based A123's recent losses and a
high-profile battery recall were a sharp reversal for a start-up
that attracted big-name investors and a $2.6 billion market value
just a few years ago.  A123 was awarded $249 million in Department
of Energy grants and has used about half so far to pay for some of
the costs of building a factory in Livonia, Michigan.  It was
among the earliest entrants in the field, opening its Michigan
battery plant in 2010, and outlining plans for a second U.S.
facility.

A123 recently announced an advance in battery chemistry that would
make its cells work in extreme hot or cold without the costly
heating and cooling gear that now adds to the price of electric
vehicles.

WSJ recounts A123 got its start with battery technology licensed
from the Massachusetts Institute of Technology and was a green-
technology favorite.  Its shares nearly doubled to above $25
within a week of its September 2009 initial public offering.

WSJ notes A123 recently warned it could run out of money due to
slower-than-expected sales of electric vehicles and manufacturing
problems, triggering a hunt for cash and new investors. Shares on
Wednesday were trading at 50 cents apiece.

WSJ relates General Electric Co., which was an early investor and
still owns about a 5% stake in A123, declined to comment.

WSJ says Wanxiang's Elgin, Illinois, U.S. operations, managed by a
son-in-law of the company's founder, has been a buyer of
distressed auto-parts makers for nearly a decade.  It formed a
joint venture that bought and turned around Driveline Systems LLC,
a Loves Park, Illinois, axle maker, and has acquired parts
operations from Dana Corp. and Ford Motor Co.

According to WSJ, Cliff Stearns (R., Fla.), who chairs the House
Energy and Commerce Committee's panel on oversight and
investigations, said on Wednesday he worried about the deal's
transfer of intellectual property.

WSJ says a White House spokeswoman declined to comment on the
Chinese firm's investment, but noted that "the company can only
use [U.S.] funding to support U.S. manufacturing facilities."

The report notes the A123's Mr. Vieau said the deal should close
in the "near term," beginning with receipt of a $25 million bridge
loan.

According to the report, if the U.S. and Chinese governments
approve the deal, A123 would get another $50 million.  With
additional commitments to purchase convertible debt and exercise
warrants, the deal could lead to a $450 million investment for an
80% ownership stake.

WSJ also notes globally, Chinese firms have disclosed more than
1,400 acquisitions since January of 2008, says researcher
Dealogic.


ACUNETX INC: Files for Chapter 7 Liquidation
--------------------------------------------
BankruptcyData.com reports that AcuNetx, doing business as
Intellinetx, Eyedynamics, Visiontex and Orthonetx) filed for
Chapter 7 protection (Bankr. N.D. Calif. Case No. 12-46436) in
Oakland.  The Company filed the case pro se.

According to documents filed with the SEC, "In March 2011, the
company computer was stolen from the company office located at
2301 W 205th St Suite 102, Torrance, California 90501. The
computer was not reported to the Torrance Police until October of
2011 upon the insistence of Chapin Hunt Jr. Prior management had
not backed-up the company's financial statements or bookkeeping
and all records were lost and had not reported the stolen
property. From 2009 to September 2011, former management had not
filed tax returns, paid the EDD or filed 10Q's and 10K's.
Corrections were made subsequent. Since 2009 AcuNetx management
had an on going concern regarding the viability of the company as
reflected in the SEC filings."

SEC filings further assert, "Management will give the Trustee the
written documentation of the mediation and the offers to merge or
purchase a portion of the company. There may be an opportunity to
convert the Chapter 7 to a Chapter 11."

Headquartered in Torrance, California, AcuNetx, Inc., together
with its subsidiaries, engages in the design, manufacture, and
marketing of diagnostic, analytical, and therapeutic devices to
the health providers, law enforcement officers, and employers in
high-risk industries.


ADELPHIA COMMS: NextEra Energy Awaits Outcome of Trial
------------------------------------------------------
In 1995 and 1996, NextEra Energy, Inc. (NEE), through an indirect
subsidiary, purchased from Adelphia Communications Corporation
(Adelphia) 1,091,524 shares of Adelphia common stock and 20,000
shares of Adelphia preferred stock (convertible into 2,358,490
shares of Adelphia common stock) for an aggregate price of
approximately $35,900,000.  On Jan. 29, 1999, Adelphia repurchased
all of these shares for $149,213,130 in cash.

In June 2004, Adelphia, Adelphia Cablevision, L.L.C. and the
Official Committee of Unsecured Creditors of Adelphia filed a
complaint against NEE and its indirect subsidiary in the U.S.
Bankruptcy Court, Southern District of New York.  The complaint
alleges that the repurchase of these shares by Adelphia was a
fraudulent transfer, in that at the time of the transaction
Adelphia (i) was insolvent or was rendered insolvent, (ii) did not
receive reasonably equivalent value in exchange for the cash it
paid, and (iii) was engaged or about to engage in a business or
transaction for which any property remaining with Adelphia had
unreasonably small capital.  The complaint seeks the recovery for
the benefit of Adelphia's bankruptcy estate of the cash paid for
the repurchased shares, plus interest from Jan. 29, 1999.

NEE has filed an answer to the complaint.  NEE believes that the
complaint is without merit because, among other reasons, Adelphia
will be unable to demonstrate that (i) Adelphia's repurchase of
shares from NEE, which repurchase was at the market value for
those shares, was not for reasonably equivalent value, (ii)
Adelphia was insolvent at the time of the repurchase, or (iii) the
repurchase left Adelphia with unreasonably small capital.  The
trial was completed in May 2012 and closing arguments were heard
in July 2012.

NextEra Energy, Inc., through its subsidiaries, engages in the
generation, transmission, distribution, and sale of electric
energy in the United States and Canada. The company is involved in
the generation of renewable energy from wind and solar projects.
It also generates electricity through natural gas, nuclear, oil
and coal, and hydro power plants.  The company serves roughly
8.9 million people through roughly 4.6 million customer accounts
in the east and lower west coasts of Florida. In addition, it
leases wholesale fiber-optic network capacity and dark fiber to
telephone, wireless, Internet, and other telecommunications
companies.

                   About Adelphia Communications

Based in Coudersport, Pennsylvania, Adelphia Communications
Corporation was once the fifth-biggest cable company.  Adelphia
served customers in 30 states and Puerto Rico, and offered analog
and digital video services, Internet access and other advanced
services over its broadband networks.

Adelphia collapsed in 2002 after disclosing that founder John
Rigas and his family owed $2.3 billion in off-balance-sheet debt
on bank loans taken jointly with the company.  Mr. Rigas is
serving 12 years in prison, and his son Timothy is serving 15
years.

Adelphia Communications and its more than 200 affiliates filed for
Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 02-41729) on
June 25, 2002.  Willkie Farr & Gallagher represented the Debtors
in their restructuring effort.  PricewaterhouseCoopers served as
the Debtors' financial advisor.  Kasowitz, Benson, Torres &
Friedman LLP and Klee, Tuchin, Bogdanoff & Stern LLP represented
the Official Committee of Unsecured Creditors.

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas-Managed Entities, were
entities that were previously held or controlled by members of the
Rigas family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision LLC.  The RME Debtors filed for Chapter 11 protection
(Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-10642) on March 31,
2006.  Their cases were jointly administered under Adelphia
Communications and its debtor-affiliates' Chapter 11 cases.

The Bankruptcy Court confirmed the Debtors' Joint Chapter 11 Plan
of Reorganization on Jan. 5, 2007.  That plan became effective on
Feb. 13, 2007.

The Adelphia Recovery Trust, a Delaware Statutory Trust, was
formed pursuant to the Plan.  The Trust holds certain litigation
claims transferred pursuant to the Plan against various third
parties and exists to prosecute the causes of action transferred
to it for the benefit of holders of Trust interests.  Lawyers at
Kasowitz, Benson, Torres & Friedman, LLP (NYC), represent the
Adelphia Recovery Trust.


AEROCAST INTERNATIONAL: Case Summary & Creditors List
-----------------------------------------------------
Debtor: Aerocast International, Inc.
        1736 South Nevada Way
        Mesa, AZ 85204

Bankruptcy Case No.: 12-17310

Chapter 11 Petition Date: August 1, 2012

Court: U.S. Bankruptcy Court
       District of Arizona (Phoenix)

Judge: Charles G. Case, II

Debtor's Counsel: J. Kent Mackinlay, Esq.
                  WARNOCK, MACKINLAY & CARMAN, PLLC
                  1019 S. Stapley Drive
                  Mesa, AZ 85204
                  Tel: (480) 898-9239
                  Fax: (480) 833-2175
                  E-mail: kent@mackinlaylawoffice.com

Estimated Assets: $100,001 to $1,000,000

Estimated Debts: $1,000,001 to $100,000,000

A copy of the Company's list of its 20 largest unsecured creditors
filed with the petition is available for free at:
http://bankrupt.com/misc/azb12-17310.pdf

The petition was signed by Robert Jamieson, Sr.


AFCO TECHNOLOGIES: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: AFCO Technologies, Inc.
        1535 Brady Blvd.
        San Antonio, TX 78237-4355

Bankruptcy Case No.: 12-52431

Chapter 11 Petition Date: August 6, 2012

Court: United States Bankruptcy Court
       Western District of Texas (San Antonio)

Judge: Ronald B. King

Debtor's Counsel: Dean William Greer, Esq.
                  2929 Mossrock, Suite 117
                  San Antonio, TX 78230
                  Tel: (210) 342-7100
                  Fax: (210) 342-3633
                  E-mail: dwgreer@sbcglobal.net

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $1,000,001 to $10,000,000

A copy of the Company's list of its 20 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/txwb12-52431.pdf

The petition was signed by Ronnie Green, president.


AHERN RENTAL: Court Extends Plan Exclusivity, Names Mediator
------------------------------------------------------------
Vertikal.net reports that U.S. Bankruptcy Court Judge Bruce
Beesley extended Ahern Rental's exclusivity period to propose a
plan until Oct. 9, 2012.  At the same time he agreed to bring in
another bankruptcy judge as a mediator between the company and the
holders of $618 million in debt.

The report notes Judge Beesley extended the Company's exclusivity
period in spite of the fact that several creditors have expressed
dissatisfaction with the progress.  Ahern had requested a three-
month extension to its exclusivity, suggesting that with time it
would be able to repay everyone in full, on the basis that the
company is performing better than expected.

The report notes Sphere Capital, an affiliate of Platinum Equity,
argued against giving Ahern more time saying that it was part of a
strategy to keep chief executive Don Ahern's majority ownership
intact.

                        About Ahern Rentals

Founded in 1953 with one location in Las Vegas, Nevada, Ahern
Rentals Inc. -- http://www.ahern.com/-- now offers rental
equipment to customers through its 74 locations in Arizona,
Arkansas, California, Colorado, Georgia, Kansas, Maryland,
Nebraska, Nevada, New Jersey, New Mexico, North Carolina, North
Dakota, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee,
Texas, Utah, Virginia and Washington.

Ahern Rentals filed a voluntary Chapter 11 petition (Bankr. D.
Nev. Case No. 11-53860) on Dec. 22, 2011, after failing to obtain
an extension of the Aug. 21, 2011 maturity of its revolving credit
facility.  Judge Bruce T. Beesley presides over the case.  Lawyers
at Gordon Silver serve as the Debtor's counsel.  The Debtor's
financial advisors are Oppenheimer & Co. and The Seaport Group.
Kurtzman Carson Consultants LLC serves as claims and notice agent.

Counsel to Bank of America, as the DIP Agent and First Lien Agent,
are Albert M. Fenster, Esq., and Marc D. Rosenberg, Esq., at Kaye
Scholer LLP, and Robert R. Kinas, Esq., at Snell & Wilmer.
Attorneys for the Majority Term Lenders are Paul Aronzon, Esq.,
and Robert Jay Moore, Esq., at Milbank, Tweed, Hadley & McCloy
LLP.  Counsel for the Majority Second Lienholder are Paul V.
Shalhoub, Esq., Joseph G. Minias, Esq., and Ana M. Alfonso, Esq.,
at Willkie Farr & Gallagher LLP.  Attorney for GE Capital is James
E. Van Horn, Esq., at McGuirewoods LLP.  Wells Fargo Bank is
represented by Andrew M. Kramer, Esq., at Otterbourg, Steindler,
Houston & Rosen, P.C.  Allan S. Brilliant, Esq., and Glenn E.
Siegel, Esq., at Dechert LLP argue for certain revolving lenders.

Attorneys for U.S. Bank National Association, as successor to
Wells Fargo Bank, as collateral agent and trustee for the benefit
of holders of the 9-1/4% Senior Secured Notes Due 2013 under the
Indenture dated Aug. 18, 2005, is Kyle Mathews, Esq., at Sheppard,
Mullin, Richter & Hampton LLP and Timothy Lukas, Esq., at Holland
& Hart.

In its schedules, the Debtor disclosed $485.8 million in assets
and $649.9 million in liabilities.

The Official Committee of Unsecured Creditors has tapped Covington
& Burling LLP as counsel, Downey Brand LLP as local counsel, and
FTI Consulting as financial advisor.


ALLY FINANCIAL: Files Form 10-Q, Incurs $898 Million Loss in Q2
---------------------------------------------------------------
Ally Financial Inc. filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $898 million on $1.71 billion of total net revenue for the
three months ended June 30, 2012, compared with net income of $113
million on $1.77 billion of total net revenue for the same period
during the prior year.

The Company reported a net loss of $588 million on $3.56 billion
of total net revenue for the six months ended June 30, 2012,
compared with net income of $259 million on $3.32 billion of total
net revenue for the same period a year ago.

The Company's balance sheet at June 30, 2012, showed $178.56
billion in total assets, $160.19 billion in total liabilities and
$18.36 billion in total equity.

A copy of the Form 10-Q is available for free at:

                          http://is.gd/BxXvnq

                         About Ally Financial

Ally Financial Inc., formerly GMAC Inc. -- http://www.ally.com/--
is one of the world's largest automotive financial services
companies.  The company offers a full suite of automotive
financing products and services in key markets around the world.
Ally's other business units include mortgage operations and
commercial finance, and the company's subsidiary, Ally Bank,
offers online retail banking products.  Ally operates as a bank
holding company.

GMAC obtained a $17 billion bailout from the U.S. government in
exchange for a 56.3% stake.  Private equity firm Cerberus Capital
Management LP keeps 14.9%, while General Motors Co. owns 6.7%.

Ally reported a net loss of $157 million in 2011, compared with
net income of $1.07 billion in 2010.  Net income was $310 million
for the three months ended March 31, 2012.

                           *     *     *

In February 2012, Fitch Ratings downgraded the long-term Issuer
Default Rating (IDR) and the senior unsecured debt rating of Ally
Financial and its subsidiaries to 'BB-' from 'BB'.  The Rating
Outlook is Negative.  The downgrade primarily reflects
deteriorating operating trends in ResCap, which has continued to
be a drag on Ally's consolidated credit profile, as well as
exposure to contingent mortgage-related rep and warranty and
litigation issues tied to ResCap, which could potentially impact
Ally's capital and liquidity levels.

As reported by the TCR on May 22, 2012, Standard & Poor's Ratings
Services revised its outlook on Ally Financial Inc. to positive
from stable.  At the same time, Standard & Poor's affirmed its
ratings, including its 'B+' long-term counterparty credit and 'C'
short-term ratings, on Ally.  "The outlook revision reflects our
view of potentially favorable implications for Ally's credit
profile arising from measures the company announced May 14, 2012,
designed to resolve issues relating to Residential Capital LLC,
Ally's troubled mortgage subsidiary," said Standard & Poor's
credit analyst Tom Connell.

In the May 28, 2012, edition of the TCR, DBRS, Inc., has placed
the ratings of Ally Financial Inc. and certain related
subsidiaries, including its Issuer and Long-Term Debt rating of BB
(low), Under Review Developing.  This rating action follows the
decision by Ally's wholly owned mortgage subsidiary, Residential
Capital, LLC (ResCap) to file a pre- packaged bankruptcy plan
under Chapter 11 of the U.S. Bankruptcy Code.


AMARANTH INC: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Amaranth, Inc.
        1329 Breamar Drive
        Carrollton, TX 75007

Bankruptcy Case No.: 12-42143

Chapter 11 Petition Date: August 6, 2012

Court: United States Bankruptcy Court
       Eastern District of Texas (Sherman)

Debtor's Counsel: Bruce E. Turner, Esq.
                  BENNETT, WESTON, LAJONE & TURNER, PC
                  1603 LBJ Freeway
                  Suite 280
                  Dallas, TX 75234
                  Tel: (972) 862-2332
                  Fax: (214) 373-2570
                  E-mail: bturner@bennettweston.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $1,000,001 to $10,000,000

The Debtor did not file a list of its largest unsecured creditors
together with its petition.

The petition was signed by Carmelita D. Dolores, president.


AMERICAN AIRLINES: Has Settlement With Bond Trustees
----------------------------------------------------
AMR Corp. and its debtor affiliates asked Judge Sean Lane of the
U.S. Bankruptcy Court for the Southern District of New York to
approve a settlement with Bank of New York Mellon and other bond
trustees.

The deal calls for the assumption of a sublease dated June 24,
1958 between the Tulsa Municipal Airport Trust and American
Airlines Inc., an AMR subsidiary.  It also requires AMR to pay
the defaults under the sublease.

American Airlines entered into the 1958 contract to lease a parcel
of ground at the Tulsa International Airport for its aircraft
maintenance base.

Payments under the sublease are applied to ground rentals for use
of the maintenance base and to debt service on the bonds issued
by the trust under an indenture it executed with BNY Mellon.  The
bonds are guaranteed by AMR.

The proposed settlement is formalized in a 14-page stipulation, a
copy of which is available without charge at:

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

A court hearing on the proposed settlement is set for Aug. 22.
Objections are due Aug. 15.

                      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 AIRLINES: Westinghouse Opposes N632AA Settlement
---------------------------------------------------------
Westinghouse Aircraft Leasing Inc. objects to American Airlines'
settlement agreement with U.S. Bank N.A. with respect to Aircraft
No. N632AA because a language in the settlement would seem to
purport that the term is binding on any third party despite not
being a party to the settlement.

Westinghouse is the owner-participant with respect to Aircraft
No. N632AA.  The lease on the Aircraft was rejected effective
Feb. 2012 and Westinghouse has filed rejection claims and other
claims related to the aircraft.

As reported in the July 30 edition of the TCR, the Debtors are
seeking approval of a settlement of claims related to six aircraft
leased by the company.  The settlement was entered into by AMR's
subsidiary American Airlines Inc., U.S. Bank N.A., and certificate
holders of loan under certain financing transactions.  The deal,
if approved, will resolve the claims of the certificate holders
and U.S. Bank, which serves as trustee under the indentures
related to the six aircraft identified by U.S. Federal Aviation
Administration Nos. N59523, N614AA, N626AA, N629AA, N632AA and
N648AA.

                      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 AIRLINES: Wants More Time to Decide on 15 Leases
---------------------------------------------------------
AMR Corp. and its affiliates ask the Court to extend the deadline
within which they may decide whether to assume or reject 15
unexpired leases of non-residential real property.  The Debtors
explain that they need the additional time to adequately address
the potential value of each lease in the context of their
restructuring efforts.

Majority of the leases are related to the Debtors' airport and
flight service operations.  A schedule of the leases is available
for free at http://bankrupt.com/misc/amr_july31leases.pdf

                      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 AIRLINES: Settles With Miami-Dade County
-------------------------------------------------
AMR Corp. and its affiliates entered into a court-approved
stipulation with Miami-Dade County, through its Aviation
Department, as owner and operator of Miami International Airport,
which stipulation provides that the Debtors will pay $26,018,100
to the County in full and final satisfaction of any existing
prepetition defaults under a prepetition agreement between the
Debtors and the County.

                      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 AIRLINES: Seeks Court OK to Buy 11 Boeing 737 Aircraft
---------------------------------------------------------------
AMR Corp. and its affiliates seek the Bankruptcy Court's
permission to purchase 11 Boeing 737-823 aircraft currently
scheduled to be delivered between September 2012 and March 2013.
The Debtors also seek authority to implement a sale and
simultaneous leaseback of the Aircraft with Next Generation
Aircraft Purchase Limited and AerCap Ireland Limited.  The Debtors
also seek the Court's permission to file the motion under seal to
protect confidential information.

                   Purchase of One Plane Approved

The Debtors meanwhile sought and obtained approval to purchase
from The Boeing Company of a Boeing 737-823 aircraft bearing U.S.
Registration No. N898NN and manufacturer's serial number 33225 on
or about August 7, 2012.  The Debtors were also authorized to
enter into certain agreements with International Lease Finance
Corporation in relation to the sale of the Aircraft and the
leaseback of the Aircraft.

                      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 CRANE: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: American Crane, Rigging and Sling Consultants, Inc.
        dba American Crane & Rigging
        aka American Crane, Rigging and Subsidiary Companies
        7495 Garth Rd.
        Beaumont, TX 77705

Bankruptcy Case No.: 12-10497

Chapter 11 Petition Date: August 6, 2012

Court: United States Bankruptcy Court
       Eastern District of Texas (Beaumont)

Debtor's Counsel: Jason R. Searcy, Esq.
                  SEARCY & SEARCY, P.C.
                  P.O. Box 3929
                  Longview, TX 75606
                  Tel: (903) 757-3399
                  E-mail: jrspc@jrsearcylaw.com

Estimated Assets: $0 to $50,000

Estimated Debts: $1,000,001 to $10,000,000

A copy of the Company's list of its 20 largest unsecured creditors
is available for free at http://bankrupt.com/misc/txeb12-10497.pdf

The petition was signed by Walter S. Lewicki, Jr., CEO.


AMERICAN NATURAL: Sells 7 Million Common Shares for US$420,000
--------------------------------------------------------------
American Natural Energy Corporation sold an aggregate of 7,000,000
shares of its common stock to four accredited investors at a price
of US$0.06 per share for total proceeds of US$420,000.  There were
no discounts or commissions paid.

The shares of common stock are not registered under the Securities
Act of 1933, as amended, or the securities laws of any state and
were issued in reliance on the exemption from registration
afforded by Section 4(2) of the Securities Act, Rule 506 of
Regulation D promulgated under the Securities Act and
corresponding provisions of state securities laws which exempt
transactions by an issuer not involving any public offering.

                      About American Natural

American Natural Energy Corporation (TSX Venture: ANR.U) is a
Tulsa, Oklahoma-based independent exploration and production
company with operations in St. Charles Parish, Louisiana.

The Company reported a net loss of $905,792 in 2011, compared with
a net loss of $2.06 million in 2010.

The Company's balance sheet at March 31, 2012, showed $17.15
million in total assets, $10.47 million in total liabilities and
$6.67 million total stockholders' equity.

In its audit report accompanying the 2011 financial statements,
MaloneBailey, LLP, in Houston, Texas, expressed substantial doubt
about the Company's ability to continue as a going concern.  The
independent auditors noted that the Company incurred a net loss in
2011 and has a working capital deficiency and an accumulated
deficit at Dec. 31, 2011.


ARCTIC GLACIER: S&P Assigns 'B-' Corp. Credit Rating
----------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-' long-term
corporate credit rating to newly formed Delaware-based Arctic
Glacier Holdings, Inc. (Arctic Glacier), an affiliate of Miami-
based H.I.G. Capital. The outlook is stable.

"Standard & Poor's also assigned its 'B' issue-level rating (one
notch above the corporate credit rating on the company), and '2'
recovery rating, to Arctic Glacier's US$25 million senior secured
revolving credit facility due 2017 and US$200 million senior
secured term loan due 2018. The recovery rating of '2' indicates
our expectation of substantial (70%-90%) recovery for creditors in
the event of default," S&P said.

"On July 27, 2012, Arctic Glacier closed on its acquisition of
substantially all of the assets of Winnipeg, Man.-based packaged
ice manufacturer Arctic Glacier Income Fund and its subsidiaries,"
said Standard & Poor's credit analyst Lori Harris. "Arctic Glacier
is a newly formed company created to acquire the above-noted
assets with the proceeds from bank and mezzanine debt issuance, as
well as an equity injection,' Ms. Harris added. Arctic Glacier
Income Fund filed for creditor protection in Canada and the U.S.
in February 2012."

"The ratings on Arctic Glacier reflect Standard & Poor's view of
the company's 'vulnerable' business risk profile and 'highly
leveraged' financial risk profile. We base our business risk
assessment on the company's narrow product portfolio, seasonality
of demand, and participation in the challenging packaged ice
industry, which is highly competitive, commoditized, fragmented,
and susceptible to unfavorable weather and economic conditions.
Partially offsetting these factors is Arctic Glacier's solid
market position in North America as the second-largest player in
the fragmented industry. We base our financial risk assessment on
the company's aggressive financial policy, including a highly
leveraged capital structure," S&P said.

"The stable outlook reflects Standard & Poor's belief that Arctic
Glacier's performance will meet our expectations in the next year,
including maintaining its solid market position and generating
positive free cash flow. We could raise the ratings if Arctic
Glacier demonstrates improvement in its operating performance
while strengthening its credit metrics, resulting in leverage
remaining below 4.5x on a sustainable basis and good covenant
cushion. We could lower the ratings if there is deterioration in
the company's operations or negative free cash flow or less than a
15% EBITDA cushion within the financial covenants," S&P said.


APPLETON PAPERS: Widens Net Loss to $48.8-Mil. in Second Quarter
----------------------------------------------------------------
Appleton Papers Inc. reported a net loss of $48.87 million on
$213.90 million of net sales for the three months ended July 1,
2012, compared with a net loss of $3.28 million on $216.58 million
of net sales for the three months ended July 3, 2011.

For the six months ended July 1, 2012, the Company reported a net
loss of $113.56 million on $433.53 million of net sales, as
compared to a net loss of $8.47 million on $434.60 million of net
sales for the six months ended July 3, 2011.

The Company's balance sheet at July 1, 2012, showed $565.45
million in total assets, $875.19 million in total liabilities and
a $309.73 million total deficit.

Mark Richards, Appleton's chairman, president and chief executive
officer, commended the company's second quarter and first half
performances.  He said strong, consistent growth of the Company's
thermal papers segment drove those achievements.  Sales of thermal
papers grew 8.6% for second quarter 2012 and 9.8% for first half
2012, respectively.  Shipments increased 3% for the second quarter
and 5% for first half 2012.

"Growth of our thermal tag, label and entertainment (TLE) business
continues to deliver strong sales and profits and led improvements
to company earnings during the first half of the year," said
Richards.

A copy of the press release is available for free at:

                        http://is.gd/QsUYaE

                       About Appleton Papers

Appleton, Wisconsin-based Appleton Papers Inc. --
http://www.appletonideas.com/-- produces carbonless, thermal,
security and performance packaging products.  Appleton has
manufacturing operations in Wisconsin, Ohio, Pennsylvania, and
Massachusetts, employs approximately 2,200 people and is 100%
employee-owned.  Appleton Papers is a 100%-owned subsidiary of
Paperweight Development Corp.

The Company reported a net loss of $2.11 million for the year
ended Dec. 31, 2011, compared with a net loss of $31.66 million
for the year ended Jan. 1, 2011.

                           *     *     *

Appleton Papers carries a 'B' corporate credit rating, with stable
outlook, from Standard & Poor's.  IT has a 'B2/LD' probability of
default rating from Moody's.


BEEBE MEDICAL: Moody's Reviews 'Ba3' Rating; Direction Uncertain
----------------------------------------------------------------
Moody's Investors Service has placed Beebe Medical Center's Ba3
bond rating on review with direction uncertain. The outstanding
bonds have exposure to a pending large class action lawsuit
against the hospital for negligence to report a former
pediatrician convicted of sexually abusing patients and ongoing
settlement negotiations with several insurance carriers over
whether insurance policies cover litigants claims. The rating
under review direction uncertain is based upon the possibility the
bond rating could be upgraded or downgraded depending on the final
executed settlement terms and total financial exposure to Beebe.

Summary Ratings Rationale

The review action is prompted by recent discussion with management
on the progress of the pending class action lawsuit in connection
with a former pediatrician with admitting privileges at the
hospital who was convicted on multiple counts of sexually abusing
patients in his practice office. Beebe has set aside approximately
$13.7 million in a contingency reserve fund that would be applied
towards a final settlement agreement. Beebe's liability could be
higher or lower depending on the final terms of the settlement.
Insurance companies are expected to pay the majority of a final
payout to victims and their families.

Despite the ongoing legal proceedings, Beebe continues to maintain
stable operations with 0.8% operating margin and 7.5% operating
cash flow margin based on unaudited FY 2012 results. Unrestricted
cash balance was $61.6 million as of June 30, 2012, equating to 85
days cash on hand and 162% cash-to- debt.

If a settlement agreement is reached within the next 90 days,
Moody's will take appropriate rating action which could include
the withdrawal, raising or lowering of the rating. Beebe could
receive a multi-notch upgrade if potential liability is capped at
or near current reserve levels.

Principal Methodology Used

The principal methodology used in this rating was Not-For-Profit
Healthcare Rating Methodology published in March 2012.


BENADA ALUMINUM: Has Green Light to Pay Employees, Taxes
--------------------------------------------------------
Penny Stacey at the USGlass News Network reports that the U.S.
Bankruptcy Court for the Middle District of Florida has issued an
order authorizing Benada Aluminum to continue operating its
business and managing its property.

The report relates, as part of the order, the company is permitted
to continue paying all of its employees and providing them with
benefits "in the ordinary course of business."

According to the report, in addition, the order allows the
Sanford, Fla.-based company to pay all of its necessary and
current expenses for operating its business, including taxes, "to
the extent that such payments are necessary to preserve the assets
or operate the business."

The report notes, as part of the agreement with the court, the
company will be required to file monthly reports with the court
and provide any information needed for the administration of the
estate.

The report says Benada's reorganization plan is due 150 days from
the date of its original Chapter 11 filing.  The company also has
requested the court's permission to name Brad Aldrich of
Transaction Data Processing Corp., as chief restructuring officer.

The report notes, additionally, the court has authorized the
company to obtain post-petition financing from Wells Fargo Bank in
the principal amount of $5 million to be borrowed on an interim
basis and $1.25 million from FTL Capital LLC.  Under the order,
Benada currently owes Wells Fargo roughly $5.7 million in debt
developed prior to the Chapter 11 filing and $2 million to FTL
Capital.

Benada was formed in 2011 to purchase assets of two aluminum
products manufacturing companies.  It purchased via 11 U.S.C. Sec.
363 the Sanford facility of Florida Extruders International (Case
No. 08-07761).  It also purchased the assets Miami, Florida-based
Benada Aluminum of Florida Inc.  The Debtor has since consolidated
operations and operates only out of its location in Sanford.

Hydro Aluminum of Linthicum, Maryland, owed about $1.4 million, is
the biggest unsecured creditor.

The Company filed for Chapter 11 protection on Aug. 1, 2012
(Bankr. M.D. Fla. Case No. 12-10518).  Judge Karen S. Jennemann
presides over the case.  R. Scott Shuker, Esq., at Latham Shuker
Eden & Beaudine LLP, represents the Debtor.  The Debtor estimated
between assets and debts of between $10 million and $50 million.


BERNARD L. MADOFF: Daughter In-Laws Fight 'Insider' Label
---------------------------------------------------------
Max Stendahl at Bankruptcy Law360 reports that the spouses of
Bernard L. Madoff's sons asked a New York federal judge Friday to
nix a $57.5 million clawback suit by the trustee recovering money
for Ponzi scheme victims, saying their marital status did not make
them "insiders" of the notorious firm.

Bankruptcy Law360 relates that Stephanie Mack, the widow of Mark
Madoff -- who committed suicide in 2010 -- and Deborah Madoff, the
ex-wife of Andrew Madoff, filed a brief disputing claims by
Bernard L. Madoff Investment Securities LLC trustee Irving 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.


BG GROUP: Asks Justices to Review $185-Mil. Award Reversal
----------------------------------------------------------
Jamie Santo at Bankruptcy Law360 reports that BG Group PLC has
told the U.S. Supreme Court that the D.C. Circuit erred in
reversing an arbitration award of more than $185 million stemming
from the British oil company's dispute with Argentina, rendering
an opinion that contravened both court precedent and national
policy.

BG Group filed a petition for writ of certiorari on July 27 in
response to the D.C. Circuit's decision that an arbitration panel
had overstepped its authority by taking on the dispute in
violation of the preconditions of a bilateral treaty, according to
Bankruptcy Law360.


BICENT HOLDINGS: Wins Prepack Plan Confirmation in Three Months
---------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist at Bloomberg News, reports
that Bicent Holdings LLC persuaded the bankruptcy judge in
Delaware to sign a confirmation order on July 31 approving the
plan that transfers ownership of the two power plants in
California to secured lenders.

According to the report, the plan was supported by holders of more
than two-thirds of the first- and second-lien debt, according to
the disclosure statement approved by the bankruptcy court.

The report relates first-lien lenders owed $178.9 million are to
receive 95% of the new stock, for a recovery estimated between
38.3% and 60.4%. Barclays Bank Plc is agent for the lenders.
Second-lien lenders, with U.S. Bank NA as agent for $128.5 million
in debt, are to have warrants for 12.5% of the new stock plus
$1.5 million cash, for an estimated recovery of 4.4%.  Holders of
mezzanine debt owed $65.2 million are to receive nothing.
Likewise, general unsecured creditors with $25.4 million in claims
are to have no recovery.

                      About Bicent Power

Bicent Holdings LLC and 12 of its affiliates sought bankruptcy
protection under Chapter 11 (Bankr. D. Del. Lead Case No.
12-11304) on April 23, 2012.  Bicent, based in Lafayette,
Colorado, owns and operates two generating facilities: Hardin, a
120-megawatt coal-fired plant about 40 miles southeast of
Billings, Montana, and San Joaquin, a 48-megawatt natural gas-
fired facility about 70 miles east of San Francisco in Lathrop,
California.

Bicent Holdings is owned by non-debtor Bicent Prime Holdings,
which is 87.1%-owned by Natural Gas Partners VIII LP, Natural Gas
Partners IX LP and NGP IX Offshore Holdings LP and 12.9%-owned by
Beowulf (Bicent) LLC.

Bicent Power LLC disclosed $7.022 million in assets and
$308 million in liabilities in its schedules.  The schedule was
filed before the June 22 deadline.

Judge Kevin Gross oversees the case.  The Debtors have tapped
Young Conaway Stargatt & Taylor, LLP as bankruptcy counsel; Moelis
& Company LLC, as financial advisor, and Paul, Weiss, Rikfind,
Wharton & Garrison LLP as corporate counsel.  Epiq Bankruptcy
Solutions LLC serves as claims and notice agent.


BRUCE BURROW: Files for Chapter 11 Bankruptcy Protection
--------------------------------------------------------
The Associated Press reports that Jonesboro, Arkansas developer
Bruce Burrow filed for Chapter 11 bankruptcy on July 30, 2012,
listing $10 million to $50 million in assets and, and $50 million
and $100 million in debts.

Incomplete documents are due Aug. 14.

The report relates Mr. Burrow, who developed the Mall at Turtle
Creek in Jonesboro, lists 20 unsecured creditors and all of them
are banks.  The banks have filed claims totaling $53 million
against Burrow.

The report notes Mr. Burrow told Arkansas Business that when the
economy went down he was left with too much vacant space.  Several
lenders filed foreclosure papers prior to the bankruptcy filing.


CAESARS ENTERTAINMENT: Widens Net Loss to $241.8MM in 2nd Quarter
-----------------------------------------------------------------
Caesars Entertainment Corporation reported a net loss of $241.8
million on $2.16 billion of net revenues for the quarter ended
June 30, 2012, compared with a net loss of $153.1 million on
$2.16 billion of net revenues for the same quarter a year ago.

The Company reported a net loss of $522.9 million on $4.37 billion
of net revenues for the six months ended June 30, 2012, compared
with a net loss of $297.9 million on $4.27 billion of net revenues
for the same period during the prior year.

The Company's balance sheet at June 30, 2012, showed $28.03
billion in total assets, $27.43 billion in total liabilities and
$607.2 million in total equity.

"After a strong first quarter, difficult economic conditions led
to lower visitation in several regions, impacting our core
operating results in the second quarter," said Gary Loveman,
Caesars Entertainment Corporation's chairman, chief executive
officer and president.  "While the economy may continue to pose
challenges, we remain focused on controlling costs, investing in
growth opportunities and our core brands and strengthening our
capital structure.

"We made significant progress during the quarter in expanding our
domestic distribution," Loveman said.  "Our alliance with Rock
Gaming LLC opened Ohio's first casino, Horseshoe Cleveland, and is
ahead of schedule on construction of Horseshoe Cincinnati, which
is expected to open early next year.  Horseshoe Cleveland has
drawn larger than expected crowds and enrolled more than 50,000
new members in our Total Rewards loyalty-program during the
quarter."

A copy of the press release is available for free at:

                         http://is.gd/ddVdD0

                      About Caesars Entertainment

Caesars Entertainment Corp., formerly Harrah's Entertainment Inc.
--http://www.caesars.com/-- is one of the world's largest casino
companies, with annual revenue of $4.2 billion, 20 properties on
three continents, more than 25,000 hotel rooms, two million square
feet of casino space and 50,000 employees.  Caesars casino resorts
operate under the Caesars, Bally's, Flamingo, Grand Casinos,
Hilton and Paris brand names.  The Company has its corporate
headquarters in Las Vegas.

Harrah's announced its re-branding to Caesar's on mid-November
2010.

The Company reported a net loss of $666.70 million in 2011, and a
net loss of $823.30 million in 2010.

                           *     *     *

As reported by the TCR on March 28, 2012, Moody's Investors
Service upgraded Caesars Entertainment Corp's Corporate Family
Rating (CFR) and Probability of Default Rating both to Caa1 from
Caa2.  The upgrade of Caesars' ratings reflects very good
liquidity, an improving operating outlook for gaming in a number
of the company's largest markets that is expected to drive
earnings growth, the completion of a bank amendment that resulted
in the extension of debt maturities to 2018 from 2015, and the
public listing of the company's equity that increases financial
flexibility by providing it with another potential source of
capital. The upgrade of the SGL rating reflects minimal debt
maturities over the next few years, significant cash balances
(approximately $900 million at December 31, 2011) and revolver
availability that will be more than sufficient to fund the
company's cash interest and capital spending needs.


CANO PETROLEUM: Plan Effective; Emerges from Bankruptcy
-------------------------------------------------------
BankruptcyData.com reports that Cano Petroleum's Second Amended
Plan of Reorganization became effective, and the Company emerged
from Chapter 11 protection.  The Court confirmed the Plan on
July 16, 2012, concurrently approving the Company's stock purchase
agreement with NBI Services.

As reported in the Troubled Company Reporter on Aug. 1, 2012, the
Bankruptcy Court entered an order approving and confirming the
Second Amended Joint Plan of Reorganization of Cano Petroleum,
Inc., and its subsidiaries and approving the Stock Purchase
Agreement, dated as of March 7, 2012, by and among NBI Services,
Inc., and the Debtors, and authorizing the consummation of the
transaction contemplated thereby.  A copy of the Plan as confirmed
is available for free at http://is.gd/h2kwJf

                         About Cano Petroleum

Cano Petroleum, Inc. (NYSE Amex: CFW), an independent Texas-
based energy producer with properties in the mid-continent region
of the United States, filed for Chapter 11 bankruptcy (Bank. N.D.
Tex. Lead Case No. 12-31549) on March 7, 2012.  Other affiliates
also sought bankruptcy protection: Cano Petro of New Mexico,
Ladder Companies, Inc., Square One Energy, Inc., Tri-Flow, Inc.,
W.O. Energy of Nevada, Inc., W.O. Operating Company, Ltd., W.O.
Production Company, Ltd., and WO Energy, Inc.  The cases are
jointly administered.

The Debtors filed for bankruptcy to pursue a sale under a joint
plan of reorganization filed on the petition date.  Cano Petroleum
have entered into a Stalking Horse Stock Purchase Agreement with
NBI Services Inc., pursuant to which NBI would purchase all of the
shares of common stock that would be issued by Reorganized Cano
under the Plan for $47.5 million.  The deal is subject to higher
and better offers and a possible auction.

The petitions were filed by James R. Latimer, III, chief executive
officer.  Judge Barbara J. Houser oversees the case.  The Debtors
are represented by lawyers at Thompson & Knight LLP, in Dallas
Texas.

Cano Petroleum's consolidated balance sheet at Sept. 30, 2011,
showed $63.37 million in total assets, $116.25 million in total
liabilities, and a $52.88 million total stockholders' deficit.  In
schedules filed with the Court, Cano Petroleum disclosed
$1.16 million in assets and $82.5 million in liabilities.

Union Bank of California, the administrative agent and issuing
lender under the Debtors' prepetition senior credit facility; and
UnionBanCal Equities, Inc., the administrative agent and issuing
lender, under the junior credit facility, are represented by:
William A. "Trey" Wood III, Esq., at Bracewell & Giuliani LLP.


CASTLEGATE GARAGE: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Castlegate Garage Door Service, Inc.
        4611 E. 46th Avenue
        Denver, CO 80216-3233

Bankruptcy Case No.: 12-26389

Chapter 11 Petition Date: August 6, 2012

Court: United States Bankruptcy Court
       District of Colorado (Denver)

Judge: Sidney B. Brooks

Debtor's Counsel: Jeffrey Weinman, Esq.
                  WEINMAN & ASSOCIATES, P.C.
                  730 17th St., Ste. 240
                  Denver, CO 80202
                  Tel: (303) 572-1010
                  Fax: (303) 572-1011
                  E-mail: jweinman@epitrustee.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $1,000,001 to $10,000,000

A copy of the Company's list of its 20 largest unsecured creditors
is available for free at http://bankrupt.com/misc/cob12-26389.pdf

The petition was signed by Mark Burns, president.


CATALYST PAPER: Incurs C$11.7 Million Net Loss in Second Quarter
----------------------------------------------------------------
Catalyst Paper Inc. filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
attributable to the Company of C$11.7 million on C$312.8 million
of sales for the three months ended June 30, 2012, compared with a
net loss attributable to the Company of C$47.7 million on C$297.8
million of sales for the same period a year ago.

The Company reported net loss attributable to the Company of
C$37.3 million on C$628.6 million of sales for the six months
ended June 30, 2012, compared with a net loss attributable to the
Company of $60.3 million on C$601.4 million of sales for the same
period during the prior year.

The Company's balance sheet at June 30, 2012, showed C$730.7
million in total assets, C$1.38 billion in total liabilities and a
C$653.9 million shareholders' deficiency.

A copy of the Form 10-Q is available for free at:

                        http://is.gd/NUFh5z

Headquartered in Richmond, British Columbia, Catalyst Paper
Corporation is largest producer of mechanical printing papers in
western North America.  It also produces NBSK pulp which is
marketed primarily in Asia.  Its business is comprised of three
business segments: specialty printing papers; newsprint; and pulp.
The Company operates four paper mills, three of which are located
in British Columbia (B.C.) in Crofton, Port Alberni, and Powell
River, and one in Snowflake, Arizona, which produces 100%
recycled-content paper.

On Jan. 31, 2012, Catalyst Paper Corporation and certain of its
subsidiaries obtained an Initial Order from the Supreme Court of
British Columbia (the Court) under the Companies' Creditors
Arrangement Act (CCAA).  The Company applied for recognition of
the Initial Order under Chapter 15 of title 11 of the U.S.
Bankruptcy Code.  The Company entered into a Debtor-In-Possession
(DIP) Credit Agreement, pursuant to which a DIP Credit Facility of
approximately $175 million was confirmed by the Court.

On June 14, 2012, the company announced a second amended plan of
arrangement after receiving consent from a requisite number of
holders of 2016 Notes to move forward to a vote.  The second
amended plan of arrangement included proposed changes regarding
the compromise of certain extended health benefits, modifications
to the salaried pension plan and application for additional
solvency deficit funding relief.

On June 25, 2012, the Company announced that it had received the
necessary creditor approval for the second amended plan of
arrangement.  Approval of more than 99% of secured and unsecured
creditors was received.  The Company also received confirmation of
regulatory approval by provincial order in council of the proposed
modifications to the salaried pension plan and the application for
additional funding relief.

The Court sanctioned the second amended plan of arrangement on
June 28, 2012, and the U.S. Bankruptcy Court in Delaware confirmed
the plan under the Chapter 15 process in a confirmation hearing on
July 27, 2012.

The British Columbia Supreme Court has approved an extension of
the Company's CCAA protection to Sept. 30, 2012.  Implementation
of the second amended plan of arrangement is conditional on the
Company securing a new asset-based loan facility (ABL Facility)
and/or other exit loan facility.  This condition must be met
before the Company can exit the CCAA process.


CHINA DELIGHT: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: China Delight, Inc.
        dba Lao Ching Hing Shanghai Resturant
        668 North 44th Street, Suite 112
        Phoenix, AZ 85008

Bankruptcy Case No.: 12-17292

Chapter 11 Petition Date: August 1, 2012

Court: U.S. Bankruptcy Court
       District of Arizona (Phoenix)

Judge: George B. Nielsen, Jr.

Debtor's Counsel: J. Kent Mackinlay, Esq.
                  WARNOCK, MACKINLAY & CARMAN, PLLC
                  1019 S. Stapley Drive
                  Mesa, AZ 85204
                  Tel: (480) 898-9239
                  Fax: (480) 833-2175
                  E-mail: kent@mackinlaylawoffice.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $1,000,001 to $10,000,000

The Company did not file a list of creditors together with its
petition.

The petition was signed by Margarita Truong, president.


COLONIAL BANCGROUP: Seeks OK for $15MM Loan to Fight FDIC Claims
----------------------------------------------------------------
Daniel Wilson at Bankruptcy Law360 reports that Colonial BancGroup
Inc. asked an Alabama bankruptcy court Wednesday to approve a
$15 million financing agreement with three hedge funds, which the
defunct bank holding company will partly use to fund a $610
million dispute with the Federal Deposit Insurance Corp. over tax
refund and securities claims.

Colonial needs the funding after an Alabama federal court in
January vacated a bankruptcy court order allowing the bank access
to disputed accounts, according to its motion to approve the term
loans.

                    About The Colonial BancGroup

Headquartered in Montgomery, Alabama, The Colonial BancGroup,
Inc., (NYSE: CNB) owned Colonial Bank, N.A, its banking
subsidiary.  Colonial Bank -- http://www.colonialbank.com/--
operated 354 branches in Florida, Alabama, Georgia, Nevada and
Texas with over $26 billion in assets.  On Aug. 14, 2009, Colonial
Bank was seized by regulators and the Federal Deposit Insurance
Corporation was named receiver.  The FDIC sold most of the assets
to Branch Banking and Trust, Winston-Salem, North Carolina.  BB&T
acquired $22 billion in assets and assumed $20 billion in deposits
of the Bank.

The Colonial BancGroup filed for Chapter 11 bankruptcy protection
(Bankr. M.D. Ala. Case No. 09-32303) on Aug. 25, 2009.  W. Clark
Watson, Esq., at Balch & Bingham LLP, and Rufus T. Dorsey IV,
Esq., at Parker Hudson Rainer & Dobbs LLP, serve as counsel to the
Debtor.  The Debtor disclosed $45 million in total assets and $380
million in total liabilities as of the Petition Date.

In September 2009, an Official Committee of Unsecured Creditors
was formed consisting of three members, Fine Geddie & Associates,
The Bank of New York Trust Company, N.A., and U.S. Bank National
Association.  Burr & Forman LLP and Schulte Roth & Zabel LLP serve
as co-counsel for the Committee.

Colonial Brokerage, a wholly owned subsidiary of Colonial
BancGroup, filed for Chapter 7 protection with the U.S. Bankruptcy
Court in the Middle District of Alabama in June 2010.  Susan S.
DePaola serves as Chapter 7 trustee.

In June 2011, the Bankruptcy Court confirmed Colonial BancGroup's
revised Chapter 11 liquidation plan over the FDIC's objection.
Kevin O'Halloran was appointed as Plan trustee.  He has tapped
Quinn Emanuel Urquhart & Sullivan LLP to serve special litigation
and conflicts counsel.


COMMERCIAL CABINETRY: Case Summary & 20 Largest Unsec Creditors
---------------------------------------------------------------
Debtor: Commercial Cabinetry of Georgia, LLC
        800 Progress Center Avenue
        Lawrenceville, GA 30043

Bankruptcy Case No.: 12-69782

Chapter 11 Petition Date: August 6, 2012

Court: United States Bankruptcy Court
       Northern District of Georgia (Atlanta)

Debtor's Counsel: Jerry A. Daniels, Esq.
                  JERRY A. DANIELS, LLC
                  Suite 300
                  390 W. Crogan Street
                  Lawrenceville, GA 30046
                  Tel: (770) 962-4070
                  Fax: (770) 513-8462
                  E-mail: jerry@danielstaylor.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $1,000,001 to $10,000,000

A copy of the Company's list of its 20 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/ganb12-69782.pdf

The petition was signed by Matthew Beaudry, co-owner.


COMMUNITY FIRST: FRB Atlanta OKs Jon Thompson as VP and CFO
-----------------------------------------------------------
Community First, Inc., sought and obtained required regulatory
approval from the Federal Reserve Bank of Atlanta regarding the
appointment of Jon Thompson as Vice President and Chief Financial
Officer of the Company.  Following confirmation from the FRB
Atlanta that it would not object to that appointment, the board of
directors of the Company appointed Mr. Thompson to the position of
Vice President and Chief Financial Officer of the Company
effective as of Aug. 1, 2012.

                       About Community First

Columbia, Tennessee-based Community First, Inc., is a registered
bank holding company under the Bank Holding Company Act of 1956,
as amended, and became so upon the acquisition of all the voting
shares of Community First Bank & Trust on Aug. 30, 2002.  An
application for the bank holding company was approved by the
Federal Reserve Bank of Atlanta (the "FRB") on Aug. 6, 2002.  The
Company was incorporated under the laws of the State of Tennessee
as a Tennessee corporation on April 9, 2002.

After auditing the Company's 2011 results, Crowe Horwath LLP, in
Brentwood, Tennessee, expressed substantial doubt about Community
First's ability to continue as a going concern.  The independent
auditors noted that the Company's bank subsidiary, Community First
Bank & Trust, is not in compliance with a regulatory enforcement
action issued by its primary federal regulator requiring, among
other things, a minimum Tier 1 Leverage capital ratio at the Bank
of not less than 8.5%, a minimum Tier 1 capital to risk-weighted
assets ratio of not less than 10.0% and a minimum Total capital to
risk-weighted assets ratio of not less than 12.0%.  "The Bank's
Tier 1 Leverage capital ratio was 4.92%, its Tier 1 capital to
risk-weighted assets ratio was 7.22% and its Total-capital to risk
weighted assets ratio was 8.51% at Dec. 31, 2011.  Continued
failure to comply with the regulatory enforcement action may
result in additional adverse regulatory action."

The Company reported a net loss of $15.0 million on $19.6 million
of net interest income (before provision for loan losses) in 2011,
compared with a net loss of  $18.2 million on $21.0 million of net
interest income (before provision for loan losses) in 2010.  Total
non-interest income was $3.4 million for 2011, compared with
$4.7 million for 2010.

The Company's balance sheet at March 31, 2012, showed
$583.77 million in total assets, $572.78 million in total
liabilities, and $10.99 million in total shareholders' equity.


COMMUNITY HEALTH: S&P Rates New $1.25-Bil. Sr. Secured Notes 'BB'
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned ratings to the
proposed $1.25 billion senior secured notes due 2018 to be
borrowed by CHS/Community Health Systems Inc., a wholly owned
subsidiary of Franklin, Tennessee-based Community Health Systems
Inc.

"We rated the notes 'BB' (two notches higher than the 'B+'
corporate credit rating on the company) with a recovery rating of
'1', indicating our expectation of very high (90% to 100%)
recovery for lenders in the event of a payment default. The
company will use the proceeds of this new issue to repay a portion
of the term loan B that matures in 2014," S&P said.

"The corporate credit rating on Community Health is 'B+' and
remains unchanged, as does the stable rating outlook. The rating
reflects our assessment of the company's business risk profile as
'fair' (according to our criteria), because of its large,
relatively diversified portfolio of hospitals that helps the
company manage uncertain reimbursement and spread local market
risk over many markets. The rating is also based on our view of
the company's financial risk profile as 'highly leveraged,'
reflected in our expectation that the current debt to EBITDA level
of about 5.3x, will remain largely unchanged. This viewpoint
includes our belief that Community Health will use its cash flow
to fund acquisitions and not repay debt. We believe acquisitions
will remain a key strategy to increase earnings, particularly as a
difficult reimbursement environment and relatively flat patient
volume trends (adjusted for outpatient visits) continue to
pressure profitability," S&P said.

RATINGS LIST

Community Health Systems Inc.
Corporate credit rating                          B+/Stable/--

New Rating

CHS/Community Health Systems Inc.
Senior Secured
   $1.25B notes due 2018                          BB
     Recovery rating                              1


CONNOLLY LLC: S&P Gives 'B' Corp. Credit Rating; Outlook Stable
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' corporate
credit rating to Atlanta-based Connolly LLC. The outlook is
stable.

"At the same time, we assigned our 'B' issue-level rating to
Connolly's proposed $30 million senior secured revolving credit
facility and $240 million senior secured first-lien loan. The
recovery rating is '3', reflecting our expectations of meaningful
(50%-70%) recovery for lenders in case of a payment default," S&P
said.

"We also assigned our 'CCC+' issue-level rating to the company's
$130 million senior secured second-lien term loan. The recovery
rating is '6', reflecting our expectations of negligible (0%-10%)
recovery for lenders in case of a payment default," S&P said.

"The ratings on Connolly reflect our view that the company has a
'highly leveraged' financial profile," S&P said.

"Our financial risk assessment incorporates our view that,
following the leveraged buyout, the debt burden will remain high
and the sponsor will likely influence financial governance," said
Standard & Poor's credit analyst Nalini Saxena.

"We view the company's financial policy as aggressive and
acquisitions as likely in the future. Further, the company has
weak asset protection," S&P said.

"Because of recent growth trends, we expect Connolly's credit
measures will improve moderately over the next 12 months, but
remain weak and in line with our indicative ratios for a 'highly
leveraged' financial risk descriptor (adjusted leverage above 5x
and a funds from operations to total debt ratio below 12%).
Connolly LLC is a private company and does not publicly disclose
its financials," S&P said.

"After the transaction, the sponsor will hold significant majority
ownership of the company and control the board; the Connolly
family will retain a partial ownership interest," S&P said.


CONVERTED ORGANICS: Has 258.8 Million Outstanding Common Shares
---------------------------------------------------------------
As previously disclosed on Jan. 3, 2012, Converted Organics
entered into an agreement with an institutional investor whereby
the Company agreed to sell to the investor 12 senior secured
convertible notes.  The initial January Note was issued on Jan. 3,
2012, in an original principal amount of $247,500.  The remaining
eleven January Notes will each have an original principal amount
of up to $237,600.  Each January Note matures eight months after
issuance.  The total face value of the twelve notes under this
agreement will be $2,861,100, assuming each note is sold for the
full face value, to the investor, of which there is no assurance.
The January Notes are convertible into shares of the Company's
common stock at a conversion price equal to 80% of lowest bid
price of the Company's common stock on the date of conversion.
Also, as previously reported on March 12, 2012, the Company
entered into an agreement with two investors, pursuant to which
the Company agreed to effect an additional closing under the
Jan. 12, 2012, convertible note in which the Company issued the
buyers new notes having an aggregate original principal amount of
$550,000.  As of July 27, 2012, the total principal outstanding on
these notes was $1,805,160.

As of Aug. 3, 2012, the principal amount of the Notes has declined
to $1,760,160.  From July 30, 2012, until Aug. 3, 2012, a total of
$45,000 in principal had been converted into 22,595,500 shares of
common stock.  Since the issuance of the Original Note and the
addtional closing, a total of $242,500 in principal has been
converted into 78,349,676 shares of common stock.  The Note
holders are accredited investors and the shares of common stock
were issued in reliance on Section 3(a)(9) under the Securities
Act of 1933, as amended.

As of Aug. 3, 2012, the Company had 258,880,148 shares of common
stock outstanding.

                    About Converted Organics

Boston, Mass.-based Converted Organics Inc. utilizes innovative
clean technologies to establish and operate environmentally
friendly businesses.  Converted Organics currently operates in
three business areas, namely organic fertilizer, industrial
wastewater treatment and vertical farming.

After auditing the 2011 results, Moody, Famiglietti & Andronico,
LLP, noted that the Company has suffered recurring losses and
negative cash flows from operations and has an accumulated deficit
that raises substantial doubt about its ability to continue as a
going concern.

Converted Organics reported a net loss of $17.98 million in 2011,
compared with a net loss of $47.81 million in 2010.

The Company's balance sheet at March 31, 2012, showed $7.18
million in total assets, $6.81 million in total liabilities and
$367,679 in total stockholders' equity.


CORNERSTONE HEALTHCARE: S&P Assigns 'B' Corp. Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' corporate
credit rating to Dallas, Texas-based Cornerstone Healthcare Group
Holding Inc. Our rating outlook on the company is stable.

"We also assigned the company's $150 million term loan credit
facility due 2015 our issue-level rating of 'B' (the same our 'B'
corporate credit rating) with a recovery rating of '3', indicating
our expectation of meaningful (50% to 70%) recovery for lenders in
the event of a payment default," said Standard & Poor's credit
analyst David Peknay.

"The ratings reflect our assessment of Cornerstone's business risk
profile as 'vulnerable' and the financial risk profile as
'aggressive,' according to our criteria. We expect Cornerstone to
remain subject to significant reimbursement risk, particularly
from the government, because Medicare provides about three-
quarters of the company's total revenues. While Medicare spending
for long-term acute care hospitals (LTACs) will rise by 1.9% in
2012, we expect rates to be reduced by a three-year phase-in of a
3.75% budget neutrality adjustment. We expect Cornerstone to
counteract this rate cut by trying to increase its commercial
insurance patient base and pursue higher commercial insurance
contract rates. We expect Cornerstone's total revenue to increase
by about 10% in 2012. We expect small, single-digit increases in
both patient days and rates to drive an estimated 4% organic
growth rate supplemented by about 5% additional beds because of
acquisitions. Possible acquisition activity could drive a revenue
increase of over 30% in 2013. We expect Cornerstone's EBITDA
margin at the end of 2012 to be about 20%," S&P said.


CROSS ISLAND PLAZA: Chapter 11 Plan Filed
-----------------------------------------
Cross Island Plaza, Inc. and Block 12892 Realty Corp. have a
proposed Chapter 11 plan that promises to provide U.S. Bank
National Association, as trustee on a secured promissory note,
full payment for its $26 million secured claim from the proceeds
of the sale of the Debtors' property or rental fees.  DLJ Mortgage
Capital Inc. will have an allowed claim of $48.3 million and will
have valid liens but payment for the claim will be contingent on
assets held by the distribution agent after the distribution
pursuant to the carve-out and holders of priority claims and U.S.
Bank.  Holders of general unsecured claims will split with what's
left with the disbursing agent after administrative expenses and
secured creditors are paid.  Holders of equity interests won't
receive anything.  Equity holders are deemed to reject the Plan.
A redlined-copy of the Disclosure Statement, as amended June 21,
2012, is available for free at:

     http://bankrupt.com/misc/Cross_Island_DS_062112.pdf

                     About Cross Island Plaza

Rosedale, New York-based Cross Island Plaza, Inc., and affiliate
Block 1892 Realty Corp. filed Chapter 11 petitions (Bankr.
E.D.N.Y. Case Nos. 12-42491 and 12-42493) on April 4, 2012.

Cross Island claims to be a Single Asset Real Estate as defined
in 11 U.S.C. Sec. 101 (51B), estimating assets and debts of
$10 million to $50 million.

CIP owns and operates an office building and parking lot known as
"One Cross Island Plaza" in Rosedale.  The property consists of
three floors and a lower level which is occupied by roughly 100
tenants.  Block owns an additional parking lot in close proximity
to the One Cross Island Plaza, and has entered into a ground lease
with CIP to provide additional parking space for two tenants of
Cross Island.

Judge Nancy Hershey Lord presides over the cases.  Adam L. Rosen,
Esq., at Silverman Acampora LLP, serves as the Debtors' counsel.
The petition was signed by Chloe Henning, authorized
representative.


DAYTOP VILLAGE: Gets Short Exclusivity Extension Thru Nov. 1
------------------------------------------------------------
The U.S. Bankruptcy Court granted Daytop Village Foundation
Incorporated and Daytop Village Inc. an extension of their
exclusive period to file a chapter 11 plan through and including
Nov. 1, 2012, and their exclusive period to solicit acceptances on
that plan through Dec. 31, 2012.   The extensions are without
prejudice to the Debtors' right to seek further extensions "for
cause" should the circumstances so warrant.

Absent the extension, the Debtors' exclusive plan filing period
was to expire Aug. 3 and the solicitation period Oct. 2.  The
Debtors requested for a 120-day extension of those dates.

The Official Committee of Unsecured Creditors appointed in the
case objected to a longer exclusivity extension, saying the
Debtors are losing money at a rate of $1 million per month and
have not yet presented a strategy for stemming these losses.  The
Committee noted that on the Petition Date, the possibility for a
100% distribution to unsecured creditors was a very real prospect.
Since the Petition Date, the Debtors are continuing to sustain
losses and are eroding expectations regarding creditor recoveries.

The Debtors have advised the Committee that they will submit a
Business Plan to the Committee in the month of August 2012.

The Committee believes that the Court should extend the Deadlines
for no more than 60 days each.  This extension will provide the
Debtors with sufficient time to submit the Business Plan and for
the Committee and all interest parties to review it.

The Committee suggested that the Court extend the Plan Exclusivity
Deadline through Oct. 2 and the Solicitation Exclusivity Deadline
through Dec. 3.

The Debtors argued there is no basis for the Committee's
unrealistic "expectations regarding creditor recoveries," nor
should continued losses by the Debtors in the short term come as a
surprise to anyone, particularly the Committee, whose financial
advisor has had access to all relevant financial information about
the Debtors in this regard.  In any event, the Debtors continued,
the Committee has inaccurately portrayed the extent of such
losses.  The Debtors pointed out that since the Petition Date they
have made progress in reducing expenses, including cutting payroll
and related costs.  Moreover, as a result of the Debtors'
extensive efforts to re-market and sell their former headquarters
building and negotiate with their pre-petition contract vendee,
the Debtors increased the value of their combined assets by
roughly $6 million, which would not have been possible had the
Debtors not commenced their chapter 11 cases and instead sold that
building pursuant to a pre-petition sales contract.

The Debtors said that, through the efforts of management and their
restructuring professionals, they are actively crafting a business
plan that will form the basis for their exit from bankruptcy with
a sustainable revenue stream and a rationalized cost structure.
They anticipate completing the business plan within roughly 45 to
60 days.  Only thereafter will they be in a position to formulate
a plan of reorganization, the Debtors said.

                      Committee Professionals

The five-member Creditors Committee was appointed on April 17 and
comprises:

        1. Morgan Fuel & Heating Co., Inc.
           d/b/a "Bottini Fuel"
           2785 West Main Street
           Wappingers Falls, NY 12590
           Attn: Mark J. Bottini, Secretary
           Tel: (845) 297-5580
           Fax: (845) 297-5465

        2. Millin Associates LLC
           521 Chestnut Street
           Cedarhurst, NY 11516
           Attn: Shlomo Weiss, Chief Executive Officer
           Tel: (516) 374-4530
           Fax: (516) 374-8613

        3. Chem Rx Pharmacy Services, LLC
           750 Park Place
           Long Beach, NY 11561
           Tel: (516) 889-8770 ext. 110
           Fax: (516) 889-8732
           Attn: Michael S. Schildt, Credit Manager

        4. Bendiner & Schlesinger Inc.
           140 58th Street
           Brooklyn, NY 11220
           Tel: (212) 254-2300
           Attn: Peter Stein, Executive Vice President

        5. K.J.L. Realty Company
           147-17 Jamaica Avenue
           Jamaica, NY 11435
           Attn: Peter Kulka, Vice President
           Tel: (718) 297-1049
           Fax: (718) 297-2403

Bendinger & Schlesinger, Inc., is the chair of the Committee.

The Committee has won Court authority to retain Robinson Brog
Leinwand Greene Genovese & Gluck P.C. as bankruptcy counsel; and
Alvarez & Marsal Healthcare Industry Group LLC as financial
advisor.

Robinson Brog's hourly rates are:

   Professional                        Rates
   ------------                        -----
   Partners                         $400 - $600
   Contract Partners/of Counsel     $400 - $550
   Associates                       $275 - $400
   Paralegals/legal assistants      $150 - $275

A&M's billing rates are:

   Professional                        Rates
   ------------                        -----
   Managing Directors               $625 - $850
   Directors                        $450 - $625
   Analysts/Associates              $225 - $450

The hourly billing rates will be discounted by 25% provided
however, A&M will be entitled to recover the portion of the
discount on the basis of a favorable distribution payable by the
reorganized Debtors to general unsecured creditors:

              GUC Recovery
     -------------------------------     A&M Discount
        Greater Than      Up to           Recapture
     ----------------  -------------     ------------
             0         Less than 85%        None
            85%        Less than 90%         50%
            90%        Less than 95%         75%
            95%        Less than 100%        90%
           100%        Not Applicable      112.5%

A&M will also be reimbursed for out-of-pocket expenses.

                        About Daytop Village

Daytop Village Foundation Incorporated, along with affiliate
Daytop Village Inc., filed a Chapter 11 petition (Bankr. S.D.N.Y.
Case No. 12-11436) on April 5, 2012, in Manhattan.

In 1963, Father William O'Brien and Dr. Alexander Bassin founded
the Daytop Lodge, a substance abuse treatment facility, in Staten
Island.  Today, Daytop is the third largest substance abuse agency
operating in the State of New York and the only substance abuse
agency operating world-wide under a contract with the Unites
States State Department.  It provides family-oriented substance
abuse treatment for adults and adolescents. Through six
residential facilities and eight outreach clinics in New York,
Daytop offers individual treatment plans by providing professional
counseling, medical, social and spiritual attention.

Judge Shelley C. Chapman presides over the Chapter 11 cases.
Lowenstein Sandler PC is the Debtors' counsel.  Epiq Bankruptcy
Solutions, LLC, is the claims and notice agent.  The Debtors'
Restructuring and Management Officer is Marotta Gund Budd Dezera
LLC.  The petition was signed by Michael Dailey, chief executive
officer.

Daytop Village Inc., as of Jan. 31, 2012 has $8.68 million in
assets and $45.03 million of liabilities.  DVF has $42.20 million
in assets and $32.00 million in liabilities as of Jan. 31, 2012.

Island Funding II, the DIP lender, is represented by Paul R.
DeFilippo, Esq., at Wollmuth Maher & Deutsch LLP.  Counsel to the
prepetition lender Signature Bank is Stephen D. Brodie, Esq., at
Herrick Feinstein LLP; and Joshua I. Divack, Esq., at Hahn &
Hessen LLP.  Counsel to the prepetition lender Hudson Valley Bank
is James P. Blose, Esq., at Griffin Coogan Blose & Sulzer P.C.

Eric M. Huebscher was appointed Patient Care Ombudsman in the
case.


DAYTOP VILLAGE: Hires Broker to Sell 4 Outpatient Facilities
------------------------------------------------------------
Daytop Village Foundation Incorporated and Daytop Village, Inc.,
seek Court permission to hire Massey Knakal Realty of Manhattan
LLC as real estate broker to DVF effective as of July 30, 2012.

The Debtors currently operate various residential treatment
centers and outpatient facilities.  The Debtors, together with
their CRO and professional advisors, are currently in the process
of developing a business plan for operating on a going forward
basis.  The Debtors have preliminarily identified four properties
owned by DVF and currently leased by DVF to Daytop Village for use
as outpatient facilities which may be candidates to be sold: (i)
401 State Street (Brooklyn, NY); (ii) 2614-2616 Halperin Avenue
(Bronx, NY); (iii) 316 Beach 65th Street (Queens, NY); and (iv)
1915 Forest Avenue (Staten Island, NY).

MKR will assist the Debtors regarding the marketing and sale
process with respect to the Properties.

The Debtors also have won Court permission to employ GA Keen
Realty Advisors, LLC as special real estate advisor.

To the extent that DVF makes a final determination to enter into a
sales contract with respect to any of the Properties, there is a
statutory process wherein the Debtors may request that the
facility licenses granted by OASAS with respect to each of the
Properties be transferred to a neighboring leased facility.

MKR will be paid by commission in connection with a sale of each
Property, computed as:

     Portion of Purchase Price          Commission With
     for Sale of Each of                Respect to Such Portion
     the Properties                     of Purchase Price
     -------------------------          -----------------------
     Up to $2 million                              5%
     Greater than $2 million and
        up to $3.5 million                         4%
     Greater than $3.5 million                     1.5%

Any Commission will be due and payable (i) to MKR whether the sale
is effectuated by MKR, DVF or another broker, and (ii) only as,
if, and when title passes.  Furthermore, to the extent MKR is
successful in procuring the sale of three or more of the
Properties, the Commission schedule will be:

     Portion of Purchase Price          Commission With
     for Sale of Each of                Respect to Such Portion
     the Properties                     of Purchase Price
     -------------------------          -----------------------
     Up to $2 million                              4.5%
     Greater than $2 million and
        up to $3.5 million                         3.5%
     Greater than $3.5 million                     1%

The Commission will be earned and payable only upon and at the
transfer of title for any of the Properties, and will be payable
solely from the proceeds of the sale.  No Commission or other
compensation will be deemed earned or payable to MKR unless and
until a sale contract satisfactory to DVF is executed, approved by
the Court, the sale closes, and the purchaser pays the full
purchase price for any of the Properties.

MKR is a diversified real estate company, representing owners in
the sale, retail lease and/or financing of their properties.  With
over 100 employees, four offices and thorough coverage of the five
boroughs of New York City, Westchester County, Long Island and New
Jersey, MKR dominates the New York metropolitan area's property
transaction marketplace.  For over two decades, MKR has focused
exclusively on the New York metropolitan area, building strong
relationships within the neighborhoods it represents and
developing an extensive database of customers that includes all of
the major investors, institutions, agencies and individuals that
are active in real estate in the area.  Since 1998, MKR's real
estate agents have closed over 4,200 transactions having an
aggregate market value in excess of $15 billion.

The Court approved the GA Keen hiring in May 2012.  GA Keen
provides appraisal services to the Debtors, including:

   (a) reviewing 10 appraisals of the Debtors prepared with
       respect to real property identified by the Debtors;

   (b) preparing and being available to provide oral testimony
       regarding the appraisals;

   (c) appraising additional Debtor-owned real properties;

   (d) preparing oral and (at the Debtors' request) written
       appraisal report containing the conclusions of the
       additional appraisals; and

   (e) providing additional services that the Debtors will
       request, including litigation support, preparation,
       deposition, court time and travel time.

GA Keen's compensation will include (a) a $17,000 flat fee for the
10 appraisal review services; (b) a fee of between $4,000 and
$8,000 for each of the additional appraisals and (c) $400 per hour
for the additional services, plus reasonable and customary
expenses.

GA Keen's Mark P. Naughton attests that the firm is a
"disinterested person" as the term is defined in Section 101(14)
of the Bankruptcy Code.

                           Other Hirings

The Debtors also have obtained Court authority to employ
Lowenstein Sandler PC as counsel.  Lowenstein was first retained
to represent the Debtors in early March 2012.  On March 13, 2012,
the Debtors paid Lowenstein $25,000 for services rendered and to
be rendered in the future.  On March 16, 2012, the Debtors paid
Lowenstein $125,000 as an additional retainer for future services.
Further, on March 21, 2012, the Debtors paid Lowenstein $125,000
as an additional retainer for future services, and on April 5,
2012, the Debtors paid an additional $32,000 retainer to
Lowenstein, for a total of $307,000.

Lowenstein's current hourly rates are:

      Members of the Firm                 $435 - $895
      Senior Counsel (generally 10
         or more years experience)        $390 - $660
      Counsel                             $350 - $630
      Associates (generally less than
         6 years experience)              $250 - $470
      Paralegals and Legal
         Assistants                       $145 - $245

The Debtors also were given permission to employ Marotta Gund Budd
& Dzerra LLC as crisis managers and designate the firm's Stephen
Marotta as Chief Restructuring Officer and Neil Peritz as
Assistant Chief Restructuring Officer.

Marotta Gund provides various services to the Debtors, including:

   (a) supervising management in organizing the Debtors' resources
and activates so as to effectively plan, coordinate and manage the
chapter 11 process and communicate with customers, lenders,
suppliers, employees, shareholders and other parties in interest.

   (b) supervising management in designing and implementing
programs to manage or divest assets, improve operations, reduce
costs and restructure as necessary with the objective of
rehabilitating the business; and

   (c) interfacing with official committees, other constituencies
and their professionals, including the preparation of financial
and operating information required b such parties and/or the
Bankruptcy Court.

Marotta Gund's fee structure consists of a fixed monthly fee of
$125,000.  Since the firm is not being employed as professional
under Section 327 of the Bankruptcy Code, it will not submit fee
applications.  The firm's fees and expenses will be treated as
administrative expenses of the Debtors' estates.

Marotta Gund attests it is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code.

                       About Daytop Village

Daytop Village Foundation Incorporated, along with affiliate
Daytop Village Inc., filed a Chapter 11 petition (Bankr. S.D.N.Y.
Case No. 12-11436) on April 5, 2012, in Manhattan.

In 1963, Father William O'Brien and Dr. Alexander Bassin founded
the Daytop Lodge, a substance abuse treatment facility, in Staten
Island.  Today, Daytop is the third largest substance abuse agency
operating in the State of New York and the only substance abuse
agency operating world-wide under a contract with the Unites
States State Department.  It provides family-oriented substance
abuse treatment for adults and adolescents. Through six
residential facilities and eight outreach clinics in New York,
Daytop offers individual treatment plans by providing professional
counseling, medical, social and spiritual attention.

Judge Shelley C. Chapman presides over the Chapter 11 cases.
Lowenstein Sandler PC is the Debtors' counsel.  Epiq Bankruptcy
Solutions, LLC, is the claims and notice agent.  The Debtors'
Restructuring and Management Officer is Marotta Gund Budd Dezera
LLC.  The petition was signed by Michael Dailey, chief executive
officer.

Daytop Village Inc., as of Jan. 31, 2012 has $8.68 million in
assets and $45.03 million of liabilities.  DVF has $42.20 million
in assets and $32.00 million in liabilities as of Jan. 31, 2012.

Island Funding II, the DIP lender, is represented by Paul R.
DeFilippo, Esq., at Wollmuth Maher & Deutsch LLP.  Counsel to the
prepetition lender Signature Bank is Stephen D. Brodie, Esq., at
Herrick Feinstein LLP; and Joshua I. Divack, Esq., at Hahn &
Hessen LLP.  Counsel to the prepetition lender Hudson Valley Bank
is James P. Blose, Esq., at Griffin Coogan Blose & Sulzer P.C.

The Official Committee of Unsecured Creditors was formed April 17,
2012.  Bendinger & Schlesinger, Inc., is the chair of the
Committee.  Alvarez & Marsal Healthcare Industry Group LLC is the
Committee's financial advisor.  Robinson Brog Leinwand Greene
Genovese & Gluck P.C. is the Committee's counsel.

Eric M. Huebscher was appointed Patient Care Ombudsman in the
case.


DAYTOP VILLAGE: Taps Former FBI's Firm as Security Consultant
-------------------------------------------------------------
Daytop Village Foundation Incorporated and Daytop Village, Inc.,
ask the Court for authority to enter into a security consulting
agreement with Global Risk & Investigative Diligence, LLC,
effective as of July 27, 2012.

In light of the (i) nature of the Daytop's business involving
residential client treatment facilities; and (ii) Daytop's acute
interest in providing for the continued safety of its patients,
employees and others in contact with the Debtors' Facilities,
Daytop seeks to enter the Agreement with GRID and to have GRID
provide consulting services to Daytop as a security and incident
reporting/management advisor.  GRID has begun the process of
evaluating and seeking to enhance where necessary the security and
incident management capabilities of the Debtors' Facilities, and
will make recommendations to Daytop once their evaluation is
complete.

GRID is a full-service security, crisis management and
investigative consulting firm led by Pasquale J. D'Amuro, the
former third-highest ranking member of the FBI, who served as
Executive Assistant Director for Counter Terrorism and Counter
Intelligence and as Assistant Director in Charge of New York.  The
Debtors noted that GRID's employees possess decades of experience
in security assessment and planning, emergency preparedness and
crisis management, intelligence gathering and investigations.

Pursuant to the Agreement, GRID will, inter alia, provide two
phases of advice: (i) an assessment of Daytop's security and
incident reporting/management system and presentation of findings,
observations and recommendations to Daytop to enhance, where
necessary, overall physical security and incident reporting
management -- Phase I; and (ii) assisting Daytop in the
development and implementation of the Approved Recommendations --
Phase II.

GRID will be compensated hourly for its services provided in Phase
I, at this pricing schedule:

     (i) Principal Manager -- $450 per hour;
    (ii) Senior Consultant -- $350 per hour; and
   (iii) Consultant -- $250 per hour.

GRID will also be reimbursed for all business and travel related
expenses reasonably and necessarily incurred in the performance of
the engagement and approved in advance by the Debtors.  GRID
estimates that its fees for Phase I will be roughly $45,000 (plus
expenses).

The scope and cost of Phase II will be determined based on the
results of Phase I and the Approved Recommendations. GRID will
submit an estimated fee schedule upon completion of Phase I and
will only commence work with respect to Phase II with the advance
written approval of Daytop.

                       About Daytop Village

Daytop Village Foundation Incorporated, along with affiliate
Daytop Village Inc., filed a Chapter 11 petition (Bankr. S.D.N.Y.
Case No. 12-11436) on April 5, 2012, in Manhattan.

In 1963, Father William O'Brien and Dr. Alexander Bassin founded
the Daytop Lodge, a substance abuse treatment facility, in Staten
Island.  Today, Daytop is the third largest substance abuse agency
operating in the State of New York and the only substance abuse
agency operating world-wide under a contract with the Unites
States State Department.  It provides family-oriented substance
abuse treatment for adults and adolescents. Through six
residential facilities and eight outreach clinics in New York,
Daytop offers individual treatment plans by providing professional
counseling, medical, social and spiritual attention.

Judge Shelley C. Chapman presides over the Chapter 11 cases.
Lowenstein Sandler PC is the Debtors' counsel.  Epiq Bankruptcy
Solutions, LLC, is the claims and notice agent.  The Debtors'
Restructuring and Management Officer is Marotta Gund Budd Dezera
LLC.  The petition was signed by Michael Dailey, chief executive
officer.

Daytop Village Inc., as of Jan. 31, 2012 has $8.68 million in
assets and $45.03 million of liabilities.  DVF has $42.20 million
in assets and $32.00 million in liabilities as of Jan. 31, 2012.

Island Funding II, the DIP lender, is represented by Paul R.
DeFilippo, Esq., at Wollmuth Maher & Deutsch LLP.  Counsel to the
prepetition lender Signature Bank is Stephen D. Brodie, Esq., at
Herrick Feinstein LLP; and Joshua I. Divack, Esq., at Hahn &
Hessen LLP.  Counsel to the prepetition lender Hudson Valley Bank
is James P. Blose, Esq., at Griffin Coogan Blose & Sulzer P.C.

The Official Committee of Unsecured Creditors was formed April 17,
2012.  Bendinger & Schlesinger, Inc., is the chair of the
Committee.  Alvarez & Marsal Healthcare Industry Group LLC is the
Committee's financial advisor.  Robinson Brog Leinwand Greene
Genovese & Gluck P.C. is the Committee's counsel.

Eric M. Huebscher was appointed Patient Care Ombudsman in the
case.


DEWEY & LEBOEUF: Sec. 341 Creditors' Meeting Next Wednesday
-----------------------------------------------------------
The U.S. Trustee for Region 2 will hold a meeting of creditors
pursuant to Section 341 of the Bankruptcy Code in the Chapter 11
case of Dewey & LeBoeuf on Aug. 15, 2012, at 1:00 p.m. (ET) at 80
Broad Street, 4th Floor, New York.

There are also Hearings scheduled in the case for Aug. 23, 2012 at
10:00 a.m. (ET) and Sept. 20, 2012 at 10:00 a.m. (ET).

                      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 US$245
million and assets of US$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
US$6 million.  The Pension benefit Guaranty Corp. took US$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 Former Partners hired Tracy L. Klestadt, Esq., and
Sean C. Southard, Esq., at Klestadt & Winters, LLP, as counsel.

U.S. Bankruptcy Judge Martin Glenn on July 31 approved Dewey's
request to extend its funding deadline, which would have July 31,
to Aug. 15.


DEWEY & LEBOEUF: Court OKs Togut Firm as Bankruptcy Counsel
-----------------------------------------------------------
The Hon. Martin Glenn U.S. Bankruptcy Court for the Southern
District of New York authorized Dewey & Leboeuf LLP to employ
Togut, Segal & Segal LLP as counsel.

Albert Togut, a member of the Togut Firm, assures the Court that
the firm is a "disinterested person" as the term is defined in
Section 101(14) of the Bankruptcy Code.

                      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 US$245
million and assets of US$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
US$6 million.  The Pension benefit Guaranty Corp. took US$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 Former Partners hired Tracy L. Klestadt, Esq., and
Sean C. Southard, Esq., at Klestadt & Winters, LLP, as counsel.

U.S. Bankruptcy Judge Martin Glenn on July 31 approved Dewey's
request to extend its funding deadline, which would have July 31,
to Aug. 15.


DEWEY & LEBOEUF: Dev't. Specialists OK'd as Wind Down Consultant
----------------------------------------------------------------
The Hon. Martin Glenn U.S. Bankruptcy Court for the Southern
District of New York, in an amended order, authorized Dewey &
Leboeuf LLP to employ Development Specialists Inc., as wind down
consultant.

DSI is expected to:

   a) familiarize itself with the Debtor's operations, assets and
      liabilities and the proceedings in the Debtor's chapter 11
      case relating to DSI's functions as wind down consultant;

   b) assist in implementing strategic and tactical courses of
      action during the Debtor's wind down relating to vacating
      office spaces, negotiating with lessors, and resolving
      issues relating to client files and records and leased
      property;

   c) coordinate with the chief restructuring officer, the
      Debtor's proposed bankruptcy counsel and Wind-Down Committee
      with respect to the foregoing; and

   d) assist, if necessary, in negotiations with parties-in-
      interest and their representatives with respect to the
      foregoing.

To the best of the Debtor's knowledge, DSI is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.

                      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 US$245
million and assets of US$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
US$6 million.  The Pension benefit Guaranty Corp. took US$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 Former Partners hired Tracy L. Klestadt, Esq., and
Sean C. Southard, Esq., at Klestadt & Winters, LLP, as counsel.

U.S. Bankruptcy Judge Martin Glenn on July 31 approved Dewey's
request to extend its funding deadline, which would have July 31,
to Aug. 15.


DEWEY & LEBOEUF: Epiq Bankruptcy OK'd as Administrative Advisor
---------------------------------------------------------------
The Hon. Martin Glenn U.S. Bankruptcy Court for the Southern
District of New York, in an amended order, authorized Dewey &
Leboeuf LLP to employ Epiq Bankruptcy Solutions, LLC as
administrative advisor.

Epiq related that it will use its best efforts to avoid any
duplication of services provided by any of the Debtor's other
retained professionals in the Chapter 11 case.

James Katchadurian, executive vice president at Epiq, assures the
Court that Epiq is a "disinterested" as that term is defined in
Section 101(14) of the Bankruptcy Code.

                      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 US$245
million and assets of US$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
US$6 million.  The Pension benefit Guaranty Corp. took US$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 Former Partners hired Tracy L. Klestadt, Esq., and
Sean C. Southard, Esq., at Klestadt & Winters, LLP, as counsel.

U.S. Bankruptcy Judge Martin Glenn on July 31 approved Dewey's
request to extend its funding deadline, which would have July 31,
to Aug. 15.


DEWEY & LEBOEUF: Goldin Associates OK'd as Special Consultant
-------------------------------------------------------------
The Hon. Martin Glenn U.S. Bankruptcy Court for the Southern
District of New York authorized Dewey & Leboeuf LLP to employ
Goldin Associates, LLC as special consultant.

David Pauker, executive managing director of the Goldin Firm,
assures the Court that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.

                      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 US$245
million and assets of US$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
US$6 million.  The Pension benefit Guaranty Corp. took US$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 Former Partners hired Tracy L. Klestadt, Esq., and
Sean C. Southard, Esq., at Klestadt & Winters, LLP, as counsel.

U.S. Bankruptcy Judge Martin Glenn on July 31 approved Dewey's
request to extend its funding deadline, which would have July 31,
to Aug. 15.


DEWEY & LEBOEUF: Extends Deadline for Clawback Deal to Aug. 13
--------------------------------------------------------------
Carolina Bolado at Bankruptcy Law360 reports that the Dewey &
LeBoeuf LLP trustee on Monday extended the deadline for partners
to agree to a proposed $90.4 million settlement that would resolve
potential clawback litigation, as the details of the deal continue
to be debated.

Bankruptcy Law360 relates that the Dewey estate pushed the
deadline ? which had already been extended from July 24 to Aug. 7
? to Aug. 13, according to sources familiar with the matter.

                        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 US$245
million and assets of US$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
US$6 million.  The Pension benefit Guaranty Corp. took US$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 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.


DIS PARTNERS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: DIS Partners, LLC, a Nevada limited liability company
        6020 Cornerstone Court West, Suite 200
        San Diego, CA 92121

Bankruptcy Case No.: 12-10821

Chapter 11 Petition Date: August 1, 2012

Court: U.S. Bankruptcy Court
       Southern District of California (San Diego)

Judge: Peter W. Bowie

Debtor's Counsel: L. Scott Keehn, Esq.
                  KEEHN LAW GROUP, APC
                  401 B Street, Suite 1470
                  San Diego, CA 92101
                  Tel: (619) 400-2200
                  E-mail: scottk@keehnlaw.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $1,000,001 to $10,000,000

A copy of the Company's list of its 20 largest unsecured creditors
filed with the petition is available for free at:
http://bankrupt.com/misc/casb12-10821.pdf

The petition was signed by Jacob Carroll, designated member.


DRC BUSINESS: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: DRC Business, Inc.
        10907 White Oak Ridge
        Houston, TX 77095

Bankruptcy Case No.: 12-35818

Chapter 11 Petition Date: August 6, 2012

Court: United States Bankruptcy Court
       Southern District of Texas (Houston)

Judge: Karen K. Brown

Debtor's Counsel: Barbara Mincey Rogers, Esq.
                  ROGERS & ANDERSON, PLLC
                  1415 North Loop West
                  Ste 1020
                  Houston, TX 77008
                  Tel: (713) 868-4411
                  Fax: (713) 868-4413
                  E-mail: brogers@ralaw.net

Scheduled Assets: $430,000

Scheduled Liabilities: $1,141,251

The Debtor did not file a list of its largest unsecured creditors
together with its petition.

The petition was signed by Randeep Singh, president.


DUMEK HOLDINGS: Case Summary & Largest Unsecured Creditor
---------------------------------------------------------
Debtor: Dumek Holdings Inc.
        5042 Wilshire Blvd #237
        Los Angeles, CA 90036

Bankruptcy Case No.: 12-36894

Chapter 11 Petition Date: August 6, 2012

Court: United States Bankruptcy Court
       Central District Of California (Los Angeles)

Judge: Vincent P. Zurzolo

Debtor's Counsel: Chukwudum N. Emenike, Esq.
                  5042 Wilshire Blvd Ste 237
                  Los Angeles, CA 90036
                  Tel: (213) 487-0190
                  Fax: (213) 487-7415

Scheduled Assets: $1,200,000

Scheduled Liabilities: $1,795,000

In its list of 20 largest unsecured creditors, the Company placed
only one entry:

Entity                   Nature of Claim        Claim Amount
------                   ---------------        ------------
Ronald Gillaspie          Contract               $235,000
14701 Bruce St.
Bellflower, CA 90706

The petition was signed by Chukwudum N. Emenike, president.


DYNEGY INC: Files Form 10-Q, Incurs $1 Billion Net Loss in Q2
--------------------------------------------------------------
Dynegy Inc. filed with the U.S. Securities and Exchange Commission
its quarterly report on Form 10-Q disclosing a net loss of $1.06
billion on $53 million of revenue for the three months ended
June 30, 2012, compared with a net loss of $116 million on $326
million of revenue for the same period during the prior year.

The Company reported a net loss of $1.12 billion on $230 million
of revenue for the six months ended June 30, 2012, compared with a
net loss of $193 million on $831 million of revenue for the same
period a year ago.

The Company's balance sheet at June 30, 2012, showed $119 million
in total assets, $121 million in total liabilities and a $2
million total stockholders' deficit.

"While the restructuring and corporate reorganization activities
have added significant complexity to the Company's financial
results, the bottom line for the quarter is our Gas segment
continues to achieve record run times helping to offset the impact
that lower natural gas prices are continuing to have on our Coal
segment results," said Robert C. Flexon, Dynegy President and
Chief Executive Officer.  "Furthermore, our commercial operations
team remained focused on managing the portfolio's exposure to
commodity price fluctuations, the legacy derivative liability
positions, and also successfully achieving new long-term
agreements for coal transportation to our facilities."

A copy of the Form 10-Q is available for free at:

                       http://is.gd/02MkBr

                          About Dynegy

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.

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, 2011, 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.

Dynegy Inc. on July 6, 2012, filed a voluntary petition to
reorganize under Chapter 11 (Bankr. S.D.N.Y. Case No. 12-36728) to
effectuate a merger with Dynegy Holdings, pursuant to Holdings'
Chapter 11 plan.

A settlement, which has already been approved by the bankruptcy
court, provides for Dynegy Inc. and Holdings to merge and for the
administrative claim granted to Dynegy Inc. in the Holdings
Chapter 11 case to be transferred out of Dynegy Inc. for the
benefit of its shareholders.

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.  The financial advisor is FTI Consulting.

The Official Committee of Unsecured Creditors in Holdings' cases
has tapped Akin Gump Strauss Hauer & Feld LLP as counsel.

Dynegy Inc. is represented by White & Case LLP and advised by
Lazard Freres & Co. LLC.


E-DEBIT GLOBAL: Incurs $28,900 Net Loss in Second Quarter
---------------------------------------------------------
E-Debit Global Corporation filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
a net loss of $28,947 on $609,025 of total revenue for the three
months ended June 30, 2012, compared with a net loss of $284,376
on $869,400 of total revenues for the same period a year ago.

The Company reported a net loss of $337,023 on $1.21 million of
total revenue for the six months ended June 30, 2012, compared
with a net loss of $513,427 on $1.67 million of total revenue for
the same period during the prior year.

The Company's balance sheet at June 30, 2012, showed $1.46 million
in total assets, $3.13 million in total liabilities and a $1.66
million total stockholders' deficit.

A copy of the Form 10-Q is available for free at:

                        http://is.gd/ept2MD

                  About E-Debit Global Corporation

E-Debit Global Corporation (WSHE) is a financial holding company
in Canada at the forefront of debit, credit and online computer
banking.  Currently, the Company has established a strong presence
in the privately owned Canadian banking sector including Automated
Banking Machines (ABM), Point of Sale Machines (POS), Online
Computer Banking (OCB) and E-Commerce Transaction security and
payment.  E-Debit maintains and services a national ABM network
across Canada and is a full participating member of the Canadian
INTERAC Banking System.

Following the 2011 results, Schumacher & Associates, Inc., in
Littleton, Colorado, noted that the Company has incurred net
losses for the years ended Dec. 31, 2011, and 2010, and had a
working capital deficit and a stockholders' deficit at Dec. 31,
2011, and 2010, which raise substantial doubt about its ability to
continue as a going concern.

The Company reported a net loss of $1.09 million in 2011, compared
with a net loss of $1.15 million in 2010.


EASTMAN KODAK: Judge Approves Incentive Plan to 12 Top Execs
------------------------------------------------------------
Lisa Uhlman at Bankruptcy Law360 reports that U.S. Bankruptcy
Judge Allan L. Gropper approved Eastman Kodak Co.'s requests
Monday to extend a 10-year-old incentive plan to 12 top executives
who were cut out following its bankruptcy filing, and to pay one
insider a bonus of up to $1.5 million.

                      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.


ELEGANT SURFACES: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Elegant Surfaces
        a California corporation
        551 Carnegie Street
        Manteca, CA 95337

Bankruptcy Case No.: 12-34409

Chapter 11 Petition Date: August 8, 2012

Court: United States Bankruptcy Court
       Eastern District of California (Sacramento)

Judge: Michael S. McManus

Debtor's Counsel: David C. Johnston, Esq.
                  JOHNSTON & JOHNSTON LAW CORP.
                  627 13th Street, Suite E
                  Modesto, CA 95354
                  Tel: (209) 579-1150

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $1,000,001 to $10,000,000

The Debtor did not file a list of its largest unsecured creditors
together with its petition.

The petition was signed by John Polimeno, president.


ENDO HEALTH: Moody's Says Share Repurchase Program Credit Neg.
--------------------------------------------------------------
Moody's Investors Service commented that the new share repurchase
authorization of Endo Health Solutions Inc. is credit negative.
However, there is currently no effect on Endo's ratings. Endo is
rated Ba2 (Corporate Family Rating) with a negative rating
outlook.

"The extent to which Endo's share repurchase program is credit
negative will depend on whether or not the company continues to
buy back stock at the higher pace seen during 1Q2012 and 2Q2012,"
stated Michael Levesque, Moody's Senior Vice President.

The principal methodology used in rating Endo Health Solutions
Inc. was the Global Pharmaceuticals Industry Methodology published
in October 2009.


ENERGY CONVERSION: Confirms 50% Liquidating Plan
------------------------------------------------
Bill Rochelle, the bankruptcy columnist at Bloomberg News, reports
that although Energy Conversion Devices Inc. and operating
subsidiary United Solar Ovonic LLC were unable to sell the
business as a going concern, the Chapter 11 case wasn't a wipeout
for unsecured creditors because the company came to bankruptcy
court in February with $145 million of unrestricted cash and
short-term investments.

According to the report, last week, the U.S. Bankruptcy Court in
Detroit signed a confirmation order approving a reorganization
plan where unsecured creditors with up to $337 million in claims
were told they could expect a recovery between 50.1% and 59.3%.
The plan creates a trust to sell remaining assets and distribute
proceeds in the order of priority laid out in bankruptcy law.  A
liquidation analysis attached to the disclosure statement showed
cash of $139.5 million.  When other assets are liquidated, the
company projected total proceeds would be $182 million to $196
million.  After expenses and claims of higher priority are paid,
the disclosure statement predicted that $168.7 million to $182.2
million would remain for unsecured creditors.

                     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 canceled an auction to sell USO as a going concern and
discontinued the court-approved sale process after failing to
receive an acceptable qualified bid by the bid deadline.  Quarton
Partners served as the companies' investment banker.  The Debtors
also hired auction services provider Hilco Industrial to prepare
for an orderly sale of the companies' assets.


EVERGREEN SOLAR: Plan Confirmed and Implemented
-----------------------------------------------
Bill Rochelle, the bankruptcy columnist at Bloomberg News, reports
that creditors of Evergreen Solar Inc. are receiving distributions
under the Chapter 11 plan resulting from a settlement between
secured noteholders and the unsecured creditors' committee.  The
settlement was approved by the bankruptcy court in March.

The report relates the settlement gave Evergreen $1.3 million and
some of the stock in the Chinese manufacturing subsidiary.
Unsecured creditors are receiving some of the subsidiary's stock
plus $50,000 cash and the ability to bring specified lawsuits.
The settlement gave the secured noteholders a deficiency claim of
$108.3 million plus an agreement that noteholders won't
participate in the recovery by unsecured creditors until they take
home 1%.

The report relates the disclosure statement told unsecured
creditors with an estimated $233 million in claims how they can
expect to recover less than 1%.  The disclosure statement revealed
that about $2.8 million would be used to pay professionals for
their work in the Chapter 11 case.

The Bloomberg report disclosed the bankruptcy court signed a
confirmation order on July 13 approving the plan.  The plan was
implemented on July 16.

                     About Evergreen Solar

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

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

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

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

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

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

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

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


FAIR FINANCE: Textron Bid to Dismiss Trustee Suit Remains Pending
-----------------------------------------------------------------
A motion to dismiss filed by Textron Inc.'s subsidiary Textron
Financial Corporation against a complaint filed by the Chapter 7
Trustee for Fair Finance Company, according to Textron's Form
10-Q filing with the U.S. Securities and Exchange Commission for
the quarterly period ended June 30, 2012.

On Feb. 7, 2012, a lawsuit was filed in the United States
Bankruptcy Court, Northern District of Ohio, Eastern Division
(Akron) by Brian A. Bash, Chapter 7 Trustee for Fair Finance
Company against TFC, Fortress Credit Corp. and Fair Facility I
LLC.  TFC provided a revolving line of credit of up to $17.5
million to Fair Finance Company from 2002 through 2007.  The
complaint alleges numerous counts against TFC, as Fair Finance
Company's working capital lender, including receipt of fraudulent
transfers and assisting in fraud perpetrated on Fair Finance
investors.  The Trustee seeks avoidance and recovery of alleged
fraudulent transfers in the amount of $316 million as well as
damages of $223 million on the other claims.  The Trustee also
seeks trebled damages on all claims under Ohio law.

Textron said, "We intend to vigorously defend this lawsuit, and on
April 20, 2012, TFC moved to dismiss all claims in the complaint.
That motion is still pending.  An estimate of a range of possible
loss cannot be made at this time due to the early stage of the
litigation."

Textron Inc. operates in the aircraft, defense, industrial, and
finance businesses worldwide.

                        About Fair Finance

Akron, Ohio-based investment company Fair Finance Co. was closed
following a November 2009 raid by the U.S. Federal Bureau of
Investigation.  Fair Finance's owner, Indiana businessman Timothy
S. Durham, a Republican political contributor whose holdings
include National Lampoon Inc., has been targeted in lawsuits and
investigations over claims he funded a luxurious lifestyle with
the proceeds of a Ponzi scheme.

Three creditors -- Nick Spada, Jacques Dunaway, and Robert Ripley
-- filed on Feb. 8, 2010, a petition to send Fair Finance to
Chapter 7 liquidation (Bankr. N.D. Oh. Case No. 10-50494).  David
Mucklow, Esq., serves as counsel to the petitioners.  Brian Bash
was appointed bankruptcy trustee.

A motion to appoint a trustee filed by the petitioning creditors
said that Mr. Durham and co-owner James Cochran took $176 million
in loans transferred from the investment fund into Fair Holdings
LLC and DC Investments LLC.  They used the money to fund
$220 million in other loans, according to the filing.


FANNIE MAE: In Talks With BofA Over Bad Mortgages
-------------------------------------------------
American Bankruptcy Institute, citing Reuters, reports that Bank
of America Corp. is in talks with Fannie Mae to resolve a dispute
over bad mortgages that the government-controlled entity wants the
No. 2 U.S. bank to buy back.

                           About Fannie Mae

Federal National Mortgage Association, aka Fannie Mae, is a
government-sponsored enterprise that was chartered by U.S.
Congress in 1938 to support liquidity, stability and affordability
in the secondary mortgage market, where existing mortgage-related
assets are purchased and sold.

Fannie Mae has been under conservatorship, with the Federal
Housing Finance Agency acting as conservator, since September 6,
2008.  As conservator, FHFA succeeded to all rights, titles,
powers and privileges of the company, and of any shareholder,
officer or director of the company with respect to the company and
its assets.  The conservator has since delegated specified
authorities to Fannie Mae's Board of Directors and has delegated
to management the authority to conduct day-to-day operations.

The U.S. Department of the Treasury owns Fannie Mae's senior
preferred stock and a warrant to purchase 79.9% of its common
stock, and Treasury has made a commitment under a senior preferred
stock purchase agreement to provide Fannie with funds under
specified conditions to maintain a positive net worth.

Fannie Mae reporte a net loss of $16.85 billion in 2011, a net
loss of $14.01 billion in 2010, and a net loss of $72.02 billion
in 2009.


FRANKLIN CREDIT: Aug. 2 Established as Distribution Record Date
---------------------------------------------------------------
The First Amended Prepackaged Plan of Reorganization of Franklin
Credit Holding Corporation, dated July 3, 2012, was amended and
confirmed by the Confirmation Order entered on July 18, 2012, in
Case No. 12-24411 (DHS), which is the voluntary case commenced by
the Company, under Chapter 11 of the Bankruptcy Code, in the
United States Bankruptcy Court for the District of New Jersey.

Upon the expiration of the time to file an appeal of the
Confirmation Order under the Federal Rules of Bankruptcy
Procedure, the Confirmation Order became a final order of the
Bankruptcy Court on Aug. 2, 2012, and, pursuant to the Prepackaged
Plan, Aug. 2, 2012, was established as the record date.

Pursuant to the Prepackaged Plan, shareholders of the common stock
of the Company as of the Record Date are entitled to receive their
respective pro rata shares of the Company's 80% interest in
Franklin Credit Management Corporation, a national mortgage
servicer.  The Effective Date of the Prepackaged Plan is
anticipated to be on or about Aug. 9, 2012.  On the Effective
Date, the Company's common shares of FCMC are expected to be
distributed to the record holders of the common stock of the
Company as of the Record Date, and all conditions precedent to the
effectiveness of the Prepackaged Plan are expected to have been
satisfied or waived.  The FCMC common stock so distributed will be
in the form of legended securities that may not be offered or sold
in the public marketplace until the effectiveness of a Form 10
Registration Statement to be filed by FCMC, which FCMC anticipates
filing in the next several days, with the Commission pursuant to
the Securities Exchange Act of 1934, as amended, or under an
applicable exemption from registration requirements.  The Company
anticipates the Form 10 Registration Statement to be filed by FCMC
will be effective, subject to the approval, review and comments of
the Commission, within sixty to ninety days of filing.

On Aug. 2, 2012, to further implement the Prepackaged Plan:

   * FCMC executed a promissory note in the amount of $1,109,000
     payable over a period of five years at an interest rate of
     3.25% per annum.  The proceeds received by the Company from
     the cash payment and Note will be used to pay the expenses of
     the liquidation manager, allowed administrative claims to the
     extent not otherwise paid, the distributions to holders of
     allowed claims and the additional costs of winding down the
     Debtor and the estate under the Prepackaged Plan.

   * Thomas J. Axon, the Chairman, President and a shareholder of
     the Company and FCMC, entered into a continuing and
     unconditional guaranty of payment agreement in favor of the
     Company to guarantee (i) the payment of all sums due under
     the Note; and (ii) the performance of all terms, conditions
     and covenants set forth in the Note.  The guaranty of payment
     includes interest on all obligations of FCMC under the Note
     without regard to whether FCMC is relieved of the obligation
     to pay that interest under the Bankruptcy Code or other
     similar statute.
      
   * Following notice to parties-in-interest and approval by the
     Bankruptcy Court, the Company entered into an agreement with
     Kevin P. Gildea, EVP, chief legal officer and Secretary of
     the Company and FCMC, who, without compensation and without
     any personal liability for any of the obligations of the
     Company, will succeed to the rights and obligations of the
     Company and will, pursuant to the Prepackaged Plan, serve as
     Liquidation Manager until the liquidation and distribution of
     the assets of the Company's bankruptcy estate and books,
     records and files required to be retained under applicable
     law are stored.  The Company, under the control of the
     Liquidation Manager, will not engage in, at any time, the
     conduct of any trade or business other than the distribution
     and liquidation of the assets of the Company's bankruptcy
     estate.

                        About Franklin Credit

Franklin Credit Holding Corporation (OTC BB: FCMC)
-- http://www.franklincredit.com/-- is a specialty consumer
finance company primarily engaged in the servicing and resolution
of performing, re-performing and nonperforming residential
mortgage loans, including specialized loan recovery servicing, and
in the analysis, pricing, due diligence and acquisition of
residential mortgage portfolios for third parties.  The Company's
executive, administrative and operations offices are located in
Jersey City, N.J.

Franklin Credit Holding Corporation filed a Chapter 11 bankruptcy
petition (Bankr. D. N.J. Case No. 12-24411) in Newark, New Jersey,
on June 4, 2012.  Franklin Credit also filed a prepackaged plan.
The Debtor is seeking a combined hearing on the plan and the
explanatory disclosure statement.

Judge Donald H. Steckroth presides over the case.  Lawyers at
McCarter & English, LLP, serves as the Debtor's counsel.

In its petition, the Debtor estimated $1 million to $10 million in
assets and $500 million to $1 billion in debts.  In a recent
regulatory filing with the U.S. Securities and Exchange
Commission, Franklin Credit Holding's balance sheet at March 31,
2012, showed $29.02 million in total assets, $874.02 million in
total liabilities, and a $845 million total stockholders' deficit.
The petition was signed by Paul Colasono, executive vice president
and chief financial officer.

The Plan provides for the liquidation of its assets -- the
ownership of 80% of the stock in non-debtor Franklin Credit
Mortgage Corp. -- with the proceeds or the fair market value of
the assets being distributed in accordance with the Bankruptcy
Code.  The fair market value of FCMC will be distributed through
the payment of $250,000 in cash on the effective date of the Plan
and an aggregate $1.11 million over a period of five years,
evidenced by a promissory note guaranteed by Thomas J. Axon, the
chairman and president of the Debtor and FCMC, and the owner of
20% of the common shares of FCMC, and 45.2% of the common shares
of the Debtor.  The payments will be made by FCMC, and will be the
primary source of cash for distributions contemplated by the Plan.
IN exchange for the payment by FCMC, the Debtor's interests in the
stock of FCMC will be distributed, pro-rata, to holders of allowed
interests.

The Plan provides for payment in full of allowed priority non-tax
claims.  The secured claims of the legacy lenders totaling
$820.6 million will be unaltered by the Plan.  Huntington National
Bank and Huntington Finance LLC will release the Debtor from any
obligations in connection with their secured claims of $4.7
million.  Holders of general unsecured claims estimated to total
$1.9 million will receive their pro rata share of the proceeds of
the liquidation of the remaining assets.

The Court has established July 18, 2012, as the hearing on the
adequacy of the Disclosure Statement.

The Debtor filed a First Amended Prepackaged Plan of
Reorganization that proposes to change, among other things, the
proposed record date to identify stockholders for a proposed
distribution of a pro rata share of the Company's 80% interest in
its mortgage servicing subsidiary, Franklin Credit Management
Corporation.  The Debtor now proposes the record date to be a date
after a confirmation order has been entered by the Bankruptcy
Court.  The Debtor also proposes to exclude liability to the
Securities and Exchange Commission from the releases proposed to
be granted in favor of non-debtors.  The Debtor asks the Court to
approve those modifications as non-material without the need for
further solicitation of votes to accept or reject the Prepackaged
Plan.


FREEDOM MARINE: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Freedom Marine Finance, LLC
        7169 NW 71 Ter
        Parkland, FL 33067

Bankruptcy Case No.: 12-28653

Chapter 11 Petition Date: August 1, 2012

Court: U.S. Bankruptcy Court
       Southern District of Florida (Fort Lauderdale)

Judge: John K. Olson

Debtor's Counsel: Sherri B. Simpson, Esq.
                  LAW OFFICES OF SHERRI B. SIMPSON, P.A.
                  644 SE 5 Avenue
                  Ft. Lauderdale, FL 33301
                  Tel: (954) 524-4141
                  Fax: (954) 763-5117
                  E-mail: sbsecf@gmail.com

Scheduled Assets: $3,500,000

Scheduled Liabilities: $209,485

The Company's list of its largest unsecured creditors filed with
the petition does not contain any entry.

The petition was signed by Todd Littlejohn, manager.


FRIENDFINDER NETWORKS: Sells Shares of Holdings to Acquisition
--------------------------------------------------------------
FriendFinder Networks Inc. sold all of the shares, par value $0.01
per share, of JGC Holdings Limited, a direct and wholly-owned
subsidiary of the Company, to JGC Acquisition LLC.  JGC Holdings
owns the operations of JigoCity.  JCG Acquisition is an entity
controlled by Anthony R. Bobulinski, the former owner of JigoCity.

The Company sold the Shares for cash consideration in the amount
of $1.00 and cancellation of warrants exercisable into 4,111,400
shares of common stock of the Company with exercise prices ranging
from $7.00-$18.00 per share out of the warrants exercisable into
6,436,851 shares originally issued when the Company acquired the
operations of JigoCity.  Additionally, the Company will reimburse
Purchaser up to an aggregate amount of $2.16 million for
legitimate business expenses of the Purchaser or JGC for the time
period from July 2012 through June 2013.  The Purchaser has agreed
to indemnify and hold harmless the Company and its affiliates in
certain circumstances.  As part of the sale transaction, 500,000
shares of common stock of the Company previously issued in
connection with the Company's acquisition of JigoCity will remain
in escrow until no later than Dec. 31, 2012, to secure a guaranty
by Global Investment Ventures, LLC, an entity wholly-owned by Mr.
Bobulinski, of Purchaser's indemnification obligations.

In connection with the sale of the Shares, the parties terminated,
effective Aug. 1, 2012, the Equity Put Agreement, entered into by
and among the Company, the shareholders named therein and Mr.
Bobulinski as the representative previously entered into in
connection with the Company's acquisition of JigoCity.  The Equity
Put Agreement gave the shareholders a put right with respect to
the shares of common stock and warrants of the Company issued to
them in connection with the acquisition of JigoCity under certain
circumstances.  The Company did not incur any penalty as a result
of the early termination of the Equity Put Agreement.

                  About FriendFinder Networks Inc.

FriendFinder Networks (formerly Penthouse Media Group) owns and
operates a variety of social networking Web sites, including
FriendFinder.com, AdultFriendFinder.com, Amigos.com, and
AsiaFriendFinder.com.  All total, its Web sites are offered in 12
languages to users in some 170 countries.  The company also
publishes the venerable adult magazine PENTHOUSE, and produces
adult video content and related images.  The Company is based in
Boca Raton, Florida.

Friendfinder's balance sheet at March 31, 2012, showed $475.34
million in total assets, $624.96 million in total liabilities and
a $149.62 million total stockholders' deficiency.

                          *     *      *

As reported by the TCR on April 9, 2012, Standard & Poor's Ratings
Services lowered its rating on Boca Raton, Fla.-based FriendFinder
Networks Inc. to 'CCC+' from 'B-'.

"The rating actions reflect the company's declining paid
subscriptions and the likelihood that operating results will
remain weak over the near term," said Standard & Poor's credit
analyst Daniel Haines.  "In addition, we believe that the company
will face difficulty refinancing significant debt maturities due
in 2013. We expect that continued economic headwinds and negative
business momentum will remain a drag on results."


GERALD CHAMPION: Chapter 11 Plan Wins Judge Approval
----------------------------------------------------
Jamie Santo at Bankruptcy Law360 reports that Gerald Champion
Regional Medical Center won approval of its Chapter 11
reorganization Tuesday as a New Mexico judge signed off on a plan
that removes the danger of lingering malpractice suits and enables
the Alamogordo, N.M., hospital to leave the court's protection in
good financial health.

Otero County Hospital Association, Inc., dba Gerald Champion
Regional Medical Center -- http:/www.gcrmc.com/ -- is a not-for-
profit 99-bed acute care facility located in Alamogordo, N.M.  It
filed for Chapter 11 bankruptcy (Bankr. N.M. Case No. 11-11-13686)
on Aug. 16, 2011.  Craig H. Averch, Esq., and Ronald Kevin
Gorsich, Esq., at White & Case, LLP, as well as John D. Wheeler &
Associates, PC, represent the Debtor.


GIBSON GUITAR: Wood Importing Issue No Impact on Moody's B2 CFR
---------------------------------------------------------------
The settlement of the illegal wood importing issue is a credit
positive, but not enough to move the rating or outlook according
to Moody's. On August 5, 2012, the U.S. Department of Justice
reported that Gibson Guitar Corporation agreed to pay a fine for
sourcing exotic wood from Madagascar that may have violated
certain laws of that country. Gibson will pay a civil fine of
$300,000 penalty to settle and end the investigation that it
violated the Lacey Act, which prohibits the acquisition of plant
products that are protected in other countries.

In 2011, Gibson was accused of illegally importing ebony from
Madagascar and India, as well as rosewood from India. In addition
to the $300,000 penalty, Gibson will also have to make a
"community service payment" of $50,000 to the U.S. National Fish
and Wildlife Foundation to promote conservation and development of
tree species used in making musical instruments.

Ratings Rationale

Gibson's B2 Corporate Family Rating reflects its relatively small
scale with proforma revenue under $550 million, the volatility in
earnings and cash flow and corporate governance concerns. Gibson's
significant customer concentration with Guitar Center also
constrains the rating. Gibson's prominent market share in guitars,
good and improving credit metrics, strong brand recognition and
diversification within guitars and related music areas supports
the rating. Moody's believes stronger credit metrics are necessary
to balance Gibson's small scale and Moody's corporate governance
concerns. Being geographically diversified helps the rating, but
having material exposure to Europe is a risk. The company's good
liquidity profile benefits the rating as does the potential for
additional strategic acquisitions.

The positive outlook reflects Moody's view that Gibson's recent
operating performance and credit metric improvements will continue
absent a macroeconomic shock and that its corporate governance
structure will further stabilize. The outlook also incorporates
Moody's expectation that the company will integrate both its
recent acquisitions (Stanton Group and Onkyo Corporation) without
any significant difficulties and that it will maintain a good
liquidity profile. Moody's expectation of debt reduction with free
cash flow is reflected in the outlook.

The principal methodologies used in this rating were Global
Consumer Durables published in October 2010. Other methodologies
used include Loss Given Default for Speculative-Grade Non-
Financial Companies in the U.S., Canada and EMEA published in June
2009.

Headquartered in Nashville, Tennessee, Gibson Guitar Corp.
primarily manufactures and markets acoustic and electric guitars
under the Gibson and Epiphone brand names and pianos under the
Baldwin brand name. The company also sells other stringed
instruments and instruments related accessories such as
amplifiers, speakers, and picks/straps. Reported revenue for the
twelve months ended March 27, 2012 approximated $360 million, but
proforma revenue was around $525 million.


GLOBAL FOOD: Incurs $797,000 Net Loss in Second Quarter
-------------------------------------------------------
Global Food Technologies, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing a
net loss of $796,659 on $36,540 of revenue for the three months
ended June 30, 2012, compared with a net loss of $899,162 on
$11,872 of revenue for the same period during the prior year.

The Company reported a net loss of $1.45 million on $66,276 of
revenue for the six months ended June 30, 2012, compared with a
net loss of $1.89 million on $101,438 of revenue for the same
period during the  prior year.

The Company's balance sheet at June 30, 2012, showed $1.07 million
in total assets, $4.31 million in total liabilities, all current,
and a $3.23 million total stockholders' deficit.

A copy of the Form 10-Q is available for free at:

                        http://is.gd/D0fzov

                        About Global Food

Headquartered in Hanford, California, Global Food Technologies,
Inc., is a life sciences company focused on food safety processes
for the food processing industry by using its proprietary
scientific processes to substantially increase the shelf life of
commercially packaged seafood and to make those products safer for
human consumption.  The Company has developed a process using its
technology called the "iPuraT Food Processing System".  The System
is installed in processor factories in foreign countries with the
product currently sold in the United States.

Global Food reported a net loss of $3.68 million in 2011, compared
with a net loss of $3.74 million in 2010.

Following the 2011 results, Squar, Milner, Peterson, Miranda &
Williamson, LLP, in Newport Beach, California, expressed
substantial doubt about the Company's ability to continue as a
going concern.  The independent auditors noted the Company has an
accumulated deficit of approximately $68,000,000 at Dec. 31, 2011,
has negative cash flow from operations of approximately $2,800,000
for the year ended Dec. 31, 2011, and has negative working capital
at Dec. 31, 2011.  The Company's ability to continue operations is
predicated on its ability to raise additional capital and,
ultimately, to achieve profitability.


GOLDWOOD INVESTMENT: Case Summary & Largest Unsecured Creditor
--------------------------------------------------------------
Debtor: Goldwood Investment, LLC
        c/o Peter K. Ng
        1118 Harry Hines Blvd., Ste. 140
        Dallas, TX 75229

Bankruptcy Case No.: 12-35136

Chapter 11 Petition Date: August 6, 2012

Court: United States Bankruptcy Court
       Northern District of Texas (Dallas)

Judge: Barbara J. Houser

Debtor's Counsel: Pro Se

Estimated Assets: $0 to $50,000

Estimated Debts: $1,000,001 to $10,000,000

In its list of 20 largest unsecured creditors, the Company placed
only one entry:

Entity                   Nature of Claim        Claim Amount
------                   ---------------        ------------
Peter Ng                  Loan                   $400,000
11181 Harry Hines Blvd
Suite 140
Dallas, TX 75229

The petition was signed by Peter Kimseng Ng, manager.


GRAHAM SLAM: Lender Takes 3 Lots; Unsecureds to Be Paid in 3 Years
------------------------------------------------------------------
Graham Slam, LLC, has a confirmed Chapter 11 Plan that was
unanimously accepted by creditors and interest holders.  The Plan
contemplates that:

    * Secured creditor Garrison Commercial Funding VII, LLC, will
      (i) receive titles to Lots 2, 3 and 14 in the Graham
      Shopping Center, (ii) retain its lien on Lot 1, and upon the
      sale of Lot 1, will receive 50% of the net proceeds, in full
      satisfaction of its secured claims.

    * Pierce County will retain the liens securing its real
      property tax claims and will receive deferred cash payments
      in the form of equal monthly payments that would fully
      amortize the real property tax claims over a period of 10
      years, plus a balloon payment paid in cash on or before the
      fifth anniversary of the confirmation date in the amount of
      the total unpaid balance.  Pierce County will be entitled to
      statutory interest on its claim pursuant to RCW 84.56.020
      and 11 U.S.C. Sec. 511(a).

    * Unsecured creditors will receive on the sixth month
      anniversary of the Effective Date, the first of 6 equal
      semi-annual payments in an amount equal to 16.667% of their
      allowed claims, with a final payment to be made on the third
      anniversary of the Effective Date.  They will not receive
      interest on their allowed claims.

    * Interest holders are impaired but they will retain their
      interests in the Reorganized Debtor.  The Reorganized Debtor
      will not make and distributions to any members during any
      period when the Reorganized Debtor is in default under the
      terms on the plan in making monthly distributions to the
      holders of allowed claims.

Judge Brian D. Lynch confirmed the Plan on July 12 after Garrison
changed its rejecting ballots to accepting ballots following
changes to the treatment of its claims.  The confirmation order
says that as a result, the Plan has been unanimously accepted by
holders of all claims and interests.

A copy of the Second Amended Plan is available at:

           http://bankrupt.com/misc/Graham_Slam_2nd_DS.pdf

                           About Graham Slam

Graham Slam, LLC, owns 12 commercial lots located in the Graham
Shopping Center on Meridian Avenue East in Pierce County,
Washington, valued together by the Debtor at $13.4 million; three
of the lots have buildings and improvements and the rest are
undeveloped and vacant.

Graham Slam filed for Chapter 11 bankruptcy (Bankr. N.D.
Calif. Case No. 11-49300) on Oct. 20, 2011.  Judge Brian D. Lynch
oversees the case.  The Debtor disclosed assets of $13,483,263 and
liabilities of $12,890,039.  The Debtor tapped Richard G. Birinyi,
Esq., at Schwabe Williamson & Wyatt P.C., in Seattle, as its
bankruptcy counsel.  The petition was signed by Brent C.
Nicholson, managing member.


GRATON ECONOMIC: S&P Rates $350MM Loan & $450MM Secured Notes 'B'
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned Rohnert Park, Calif.-
based Graton Economic Development Authority its 'B' preliminary
issuer rating. The preliminary rating outlook is stable. The
Authority is a wholly owned unincorporated instrumentality of the
Federated Indians of Graton Rancheria (the Tribe).

"At the same time, we assigned the Authority's proposed $350
million senior secured term loan due 2018 and $450 million in
senior secured notes due 2019 our 'B' preliminary issue-level
rating (the same as our preliminary issuer credit rating). The
proposed senior secured term loan and senior secured notes are
pari passu. The Authority also intends to raise a $25 million
priority revolving credit facility, which we will not rate.
Additionally, pro forma for the transaction, the Authority will
have $75 million outstanding in a management loan (manager loan),
which is held by a subsidiary of Station Casinos LLC and will be
subordinated to the senior secured notes and senior secured term
loan," S&P said.

"We do not assign recovery ratings to Native American debt issues,
because there are sufficient uncertainties surrounding the
exercise of creditor rights against a sovereign nation, including
whether the Bankruptcy Code would apply, whether a U.S. court
would ultimately be the appropriate venue to settle such a matter,
and to what extent a creditor would be able to enforce any
judgment against the sovereign nation," S&P said.

"Our preliminary ratings are subject to our review of final
documentation," S&P said.

"Our preliminary 'B' issuer credit rating on the Authority
reflects our assessment of its business risk profile as 'weak' and
our assessment of its financial risk profile as 'highly
leveraged,' according to our criteria," S&P said.

"Our business risk profile assessment of weak reflects the
vulnerability of new gaming projects to uncertain demand and
difficulties managing initial costs, which can lead to poor
profitability during the first several months of operations," said
Standard & Poor's credit analyst Michael Halchak, "as well as the
Authority's reliance on a single asset to meet debt service needs.
These risks are somewhat mitigated by our expectation for the
property to be the highest asset quality in proximity to the San
Francisco market, a somewhat protected market position, and an
experienced property manager in Station. However, although there
are approximately 2.1 million adults within a 60-minute drive of
the property, we see some risk in the fact that the adult
population within 30 minutes of the property is approximately
354,000 people."


GRAYSON EXCHANGE: Case Summary & 6 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Grayson Exchange, LLC
        942 Little Darby LN
        Suwanee, GA 30024

Bankruptcy Case No.: 12-69510

Chapter 11 Petition Date: August 6, 2012

Court: United States Bankruptcy Court
       Northern District of Georgia (Atlanta)

Judge: Barbara Ellis-Monro

Debtor's Counsel: Leslie M. Pineyro, Esq.
                  JONES AND WALDEN, LLC
                  21 Eighth Street, NE
                  Atlanta, GA 30309
                  Tel: (404) 564-9300
                  Fax: (404) 564-9301
                  E-mail: lpineyro@joneswalden.com

Scheduled Assets: $2,001,839

Scheduled Liabilities: $3,086,550

A copy of the Company's list of its six largest unsecured
creditors filed together with the petition is available for free
at http://bankrupt.com/misc/ganb12-69510.pdf

The petition was signed by Young Ju Oh Hall, manager.


GREEK PEAK: $1.6MM FDIC Loan Allows Operations Through This Winter
------------------------------------------------------------------
Jeff Platsky at pressconnects.com reports U.S. Sen. Charles
Schumer (D-N.Y.) said the $1.6 million in emergency loans provided
by the Federal Deposit Insurance Corp. to ski resort operator
Greek Peak will allow the Cortland County, N.Y., attraction to
continue operating through this winter, averting an immediate
crisis.  However, Sen. Schumer said a more permanent solution is
necessary.

According to the report, Sen. Schumer has been lobbying the FDIC
to assure at least the immediate future of the resort, which
employs as many as 1,000 people during the winter season.

The report notes federal regulators seized Greek Peak's primary
lender, Tennessee Commerce Bank, in January.  Resort managers have
been unable to secure alternative financing for the $35 million in
outstanding loans it had from the defunct bank.  Without
assurances of alternative financing, the long-term future of Greek
Peak is uncertain.


GRUBB & ELLIS: Avison Young Poached Employees, BGC Says
-------------------------------------------------------
Scott Flaherty at Bankruptcy Law360 reports that BGC Partners
Inc., which recently acquired Grubb & Ellis Co., sued Canadian
rival Avison Young Inc. in New York state court Wednesday,
alleging it engaged in an illegal scheme to poach Grubb employees
and steal its business.

Bankruptcy Law360 relates that BGC said that Avison Young and its
CEO Mark Rose, who served as Grubb's CEO until late-2007, had
carried out an aggressive U.S. recruiting plan that illicitly
targeted Grubb's employees, inducing them to break contracts and
conceal "business opportunities."

                        About Grubb & Ellis

Grubb & Ellis Company -- http://www.grubb-ellis.com/-- is a
commercial real estate services and property management company
with more than 3,000 employees conducting throughout the United
States and the world.  It is one of the oldest and most recognized
brands in the industry.

Grubb & Ellis and 16 affiliates filed for Chapter 11 bankrutpcy
(Bankr. S.D.N.Y. Lead Case No. 12-10685) on Feb. 21, 2012, to sell
almost all its assets to BGC Partners Inc.  The Santa Ana,
California-based company disclosed $150.16 million in assets and
$167.2 million in liabilities as of Dec. 31, 2011.

Judge Martin Glenn presides over the case.  The Debtors have
engaged Togut, Segal & Segal, LLP as general bankruptcy counsel,
Zuckerman Gore Brandeis & Crossman, LLP, as general corporate
counsel, and Alvarez & Marsal Holdings, LLC, as financial advisor
in the Chapter 11 case.  Kurtzman Carson Consultants is the claims
and notice agent.

BGC Partners, Inc., and its affiliate, BGC Note Acquisition Co.,
L.P., the DIP lender and Prepetition Secured Lender, are
represented in the case by Emanuel C. Grillo, Esq., at Goodwin
Procter LLP.

On March 27, 2012, the Court approved the sale to BCG.  An auction
was cancelled after no rival bids were submitted.  Pursuant to the
term sheet signed by the parties, BGC would acquire the assets for
$30.02 million, consisting of a credit bid the full principal
amount outstanding under the (i) $30 million credit agreement
dated April 15, 2011, with BGC Note, (ii) the amounts drawn under
the $4.8 million facility, and (iii) the cure amounts due to
counterparties.  BGC would also pay $16 million in cash because
the sale was approved by the March 27 deadline.  Otherwise, the
cash component would have been $14 million.

Approval of the sale was simplified when BGC settled with
unsecured creditors by increasing their recovery.

Several parties in interest have taken an appeal from the sale
order.


HAMPTON ROADS: Commences $45 Million Rights Offering
----------------------------------------------------
Hampton Roads Bankshares, Inc., the holding company for The Bank
of Hampton Roads and Shore Bank, announced the commencement of its
previously disclosed $45 million rights offering.  In the Rights
Offering, shareholders who owned common shares of the Company as
of 5:00 p.m., New York City time, on May 31, 2012, will receive at
no charge a non-transferable right to purchase newly-issued common
shares.

The Company will issue up to 64,285,715 common shares in the
Rights Offering at a price of $0.70 per share.  For each share of
the Company's common stock owned on the record date, an eligible
shareholder will be entitled to exercise a basic subscription
right to buy 1.8600 shares of the Company's common stock at the
subscription price and, if all of the shareholder's basic
subscription rights are exercised, an additional subscription
right to buy 2.0667 shares of the Company's common stock at the
subscription price.

The Rights Offering will expire at 5:00 p.m. New York City time on
Sept. 5, 2012.

In connection with the Rights Offering, the Company has entered
into a Standby Purchase Agreement with the following entities or
their affiliates or managed funds: The Carlyle Group L.P.,
Anchorage Capital Group, L.L.C., and CapGen Capital Group VI LP.
The Standby Purchase Agreement provides that the Investors will
not exercise their basic subscription rights and instead will
purchase from the Company, at the subscription price, a portion of
the shares, if any, up to an aggregate of 53,518,176 shares, not
subscribed for in the Rights Offering.

The Company plans to use the proceeds of the Rights Offering for
general corporate purposes, which will include, but not be limited
to, making capital contributions to its subsidiary banks.

                   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.


HASSEN REAL ESTATE: Plan Exclusivity Extended Until Nov. 15
-----------------------------------------------------------
The bankruptcy judge has approved a stipulation extending until
Nov. 15, 2012, the exclusive period for Hassen Real Estate
Partnership and affiliate Eastland Tower to solicit acceptances
for their First Amended Joint Chapter 11 Plan of Reorganization
dated Jan. 18, 2012.  The stipulation also provides that the
hearing on the disclosure statement is postponed until Sept. 13,
2012.  The Debtors' access to cash collateral is also extended
until Sept. 13, according to the stipulation, which was signed by
the Debtors and lenders CSMC 2006-C5 Azusa Avenue Limited
Partnership and CSMC 2006-C5 Barranca Street Limited Partnership.
The parties have already entered nine stipulations continuing the
hearing on certain issues and granting the Debtors access to cash
collateral.  The prior stipulation gave the Debtors exclusivity
until Sept. 7 and access to cash until Aug. 7.

           About Hassen Real Estate and Eastland Tower

Hassen Real Estate Partnership and affiliate Eastland Tower
Partnership are each engaged in the business of commercial real
estate development and operation in West Covina, California.  HREP
owns and operates a retail/office center known as the West Covina
Village Shopping Center, while ETP owns and operates an office
tower known as the Wells Fargo Bank Tower.

HREP filed for Chapter 11 bankruptcy protection (Bankr. C.D.
Calif. Case No. 11-25499) on April 10, 2011.  Christine M. Pajak,
Esq., and Marina Fineman, Esq., and Theodore B. Stolman, Esq., at
Stutman, Treister & Glatt Professional Corporation, in Los
Angeles, serve as the Debtor's bankruptcy counsel.  The Debtor
estimated its assets and debts at $10 million to $50 million.

ETP (Bankr. C.D. Calif. Case No. 11-25500) simultaneously filed a
separate Chapter 11 petition.


HEALTHCARE OF FLORENCE: E&M Consented to Cash Use
-------------------------------------------------
Healthcare of Florence, LLC, has been allowed to use cash
collateral of E&M Hospital Investments, LLC, in order to maintain
operations of its hospital.  E&M, owed $2,602,577 (not including
legal fees and costs) with prepetition collateral of a value of
around $3,175,000, initially opposed access to its cash
collateral.  Following hearings on May 30, June 7 and June 12 the
judge on June 13 entered a final order authorizing the use of cash
collateral.  According to the order, E&M is awarded adequate
protection in the form of post-petition receivables for the
Debtor's use without E&M's consent of $121,000 of prepetition
receivables.  For the use of cash collateral postpetition, E&M
will have first priority lien and perfected replacement lien upon
all assets of the Debtor postpetition.  E&M permitted the use of
cash collateral totaling $334,000 until June 13.

                   About Healthcare of Florence

Healthcare of Florence, LLC, filed a bare-bones Chapter 11
petition (Bankr. D. Ariz. Case No. 12-08547) in Tucson, Arizona,
on April 23, 2012.  Healthcare of Florence, LLC --
http://www.florencecommunityhealthcare.com-- owns and operates a
full-service community hospital in Florence, Arizona.  The Debtor
disclosed $42.2 million in assets and $39.0 million in liabilities
as of the Chapter 11 filing.

Judge James M. Marlar presides over the case.  James F. Kahn P.C.
serves as the Debtor's counsel.  The petition was signed by Edward
McEachern, CEO of Initiatives Healthcare, LLC, manager of debtor.


HERCULES OFFSHORE: Has $36MM Share Purchase Pact with Integradora
-----------------------------------------------------------------
Hercules Offshore, Inc.'s wholly owned subsidiaries, THE Offshore
Drilling Company, THE Onshore Drilling Company, TODCO Mexico Inc.
and Servicios TODCO S. de R.L. de C.V., entered into a share
purchase agreement with Integradora de Servicios Petroleros Oro
Negro, S.A.P.I. de C.V.  Pursuant to the Purchase Agreement,
Sellers will sell to Buyer all of the issued and outstanding
capital stock of TMI and the equity interests in Servicios for
aggregate consideration of approximately $36 million, consisting
of a base purchase price of $28 million, as adjusted for net
working capital as of the closing.  TMI's current business is the
operation of one rig, Platform Rig 3, that is providing drilling
services to Petróleos Mexicanos, or PEMEX, in the offshore Gulf of
Mexico under a long-term contract.  Servicios' current business is
providing personnel to TMI in connection with the operation of Rig
3.  As a result of this transaction, the Company will no longer
own any platform rigs and will no longer have operations in
Mexico.  The net book value of Rig 3 is approximately $8.2
million.

The transaction is expected to close in the third quarter of 2012,
subject to customary closing conditions, including obtaining any
necessary approvals required under the Mexican antitrust laws and
Buyer securing funding necessary to complete the acquisition.  The
Purchase Agreement contains customary representations and
warranties, covenants and indemnification provisions.

                      About Hercules Offshore

Hercules Offshore Inc. (NASDAQ: HERO) --
http://www.herculesoffshore.com/-- provides shallow-water
drilling and marine services to the oil and natural gas
exploration and production industry in the United States, Gulf of
Mexico and internationally.  The Company provides these services
to integrated energy companies, independent oil and natural gas
operators and national oil companies.  The Company operates in six
business segments: Domestic Offshore, International Offshore,
Inland, Domestic Liftboats, International Liftboats and Delta
Towing.

The Company reported a net loss of $76.12 million in 2011, a
net loss of $134.59 million in 2010, and a net loss of
$91.73 million in 2009.

The Company's balance sheet at June 30, 2012, showed $2.04 billion
in total assets, $1.13 billion in total liabilities and $913.21
million in stockholders' equity.

                           *     *     *

The Troubled Company Reporter said on March 23, 2012, that
Moody's Investors Service upgraded Hercules Offshore, Inc.,
Corporate Family Rating (CFR) and Probability of Default Rating
(PDR) to B3 from Caa1 contingent upon the completion of its
recently announced recapitalization plan.

Hercules' B3 CFR reflects its jackup fleet, which consists
primarily of standard specification rigs with an average age of
about 30 years.  Its rigs are geographically concentrated in the
Gulf of Mexico (GoM), a market that experienced a slow-down after
the Macondo well incident.  However, over the last year a pick-up
in permitting and activity levels in the GoM, has led to higher
dayrates.  For Hercules, the improving market conditions have
stabilized its cash flow from operations, which are expected
continue to improve for at least the next 18 to 24 months as old
contracts roll into new contracts with higher dayrates.  These
improving market conditions support the decision to upgrade
Hercules' CFR at this time.

As reported by the TCR on Jan. 23, 2012, Standard & Poor's Ratings
Services revised its outlook on Houston-based Hercules Offshore
Inc. to stable from negative and affirmed its 'B-' corporate
credit rating on the company.  "The rating on the company's senior
secured credit facility remains 'B-' (the same as the corporate
credit rating on the company) with a recovery rating of '3',
indicating our expectation of a meaningful (50% to 70%) recovery
in the event of payment default," S&P said.

"Our ratings on Hercules reflect its participation in the highly
volatile and competitive shallow-water drilling and marine
services segments of the oil and gas industry. The ratings also
incorporate our expectation that day rates and utilization for the
company's jack-up rigs in the U.S. Gulf of Mexico will remain
robust throughout 2012. Moreover, we expect the company's domestic
offshore operations will provide the majority of EBITDA generation
in 2012, since its international offshore segment will perform
more weakly compared with 2011 due to lower contract renewal day
rates reflecting current market conditions. The ratings also
incorporate the company's geographic and product diversification
(provided by the its liftboat segments) and adequate liquidity, as
well as the risks associated with the Securities and Exchange
Commission's investigation into possible violations of securities
law, including possible violations of the Foreign Corrupt
Practices Act. The company is also the subject of a review by the
U.S. Department of Justice (DOJ)," S&P said.


HOMELAND POWERSOURCE: Case Summary & 8 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: Homeland PowerSource Production Company, LLC
        1320 S. University Dr., Suite 806
        Fort Worth, TX 76107

Bankruptcy Case No.: 12-44496

Chapter 11 Petition Date: August 6, 2012

Court: United States Bankruptcy Court
       Northern District of Texas (Ft. Worth)

Judge: D. Michael Lynn

Debtor's Counsel: Mark Joseph Petrocchi, Esq.
                  GRIFFITH, JAY & MICHEL, LLP
                  2200 Forest Park Blvd.
                  Ft. Worth, TX 76110
                  Tel: (817) 926-2500
                  Fax: (817) 926-2505
                  E-mail: mpetrocchi@lawgjm.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $100,001 to $500,000

A copy of the Company's list of its eight largest unsecured
creditors is available for free at
http://bankrupt.com/misc/txnb12-44496.pdf

The petition was signed by Valencia Wescott, sole member.


HOSTESS BRANDS: Court OKs Delayed Payment of Pension Claims
-----------------------------------------------------------
Rachel Feintzeig at Dow Jones' Daily Bankruptcy Review reports
that a bankruptcy judge affirmed that Hostess Brands Inc. doesn't
immediately have to dole out payments to pension funds that had
previously won high-ranking claims in the bankruptcy case.

                       About Hostess Brands

Founded in 1930, Irving, Texas-based Hostess Brands Inc., is known
for iconic brands such as Butternut, Ding Dongs, Dolly Madison,
Drake's, Home Pride, Ho Hos, Hostess, Merita, Nature's Pride,
Twinkies and Wonder.  Hostess has 36 bakeries, 565 distribution
centers and 570 outlets in 49 states.

Hostess filed for Chapter 11 bankruptcy protection early morning
on Jan. 11, 2011 (Bankr. S.D.N.Y. Case Nos. 12-22051 through
12-22056) in White Plains, New York.  Debtor-affiliates that filed
separate Chapter 11 petition are IBC Sales Corporation, IBC
Trucking LLC, IBC Services LLC, Interstate Brands Corporation, and
MCF Legacy Inc.  Hostess Brands disclosed assets of $982 million
and liabilities of $1.43 billion as of Dec. 10, 2011.  Debt
includes $860 million on four loan agreements.  Trade suppliers
are owed as much as $60 million.

The bankruptcy filing was made two years after predecessors
Interstate Bakeries Corp. and its affiliates emerged from
bankruptcy (Bankr. W.D. Mo. Case No. 04-45814).  Ripplewood
Holding LLC, after providing $130 million to finance the plan,
obtained control of IBC's business following the prior
reorganization.  Hostess Brands is privately held.  The new owners
pursued new Chapter 11 cases to escape from what they called
"uncompetitive and unsustainable" union contracts, pension plans,
and health benefit programs.

In 2011, Hostess retained Houlihan Lokey to explore sales of its
smaller assets and individual brands.  Houlihan Lokey oversaw the
sale of Mrs. Cubbison's to Sugar Foods Corporation for
$12 million, but was unable to sell any of Hostess' core assets.
Judge Robert D. Drain oversees the case.  Hostess has hired Jones
Day as bankruptcy counsel; Stinson Morrison Hecker LLP as general
corporate counsel and conflicts counsel; Perella Weinberg Partners
LP as investment bankers, FTI Consulting, Inc. to provide an
interim treasurer and additional personnel for the Debtors, and
Kurtzman Carson Consultants LLC as administrative agent.

Matthew Feldman, Esq., at Willkie Farr & Gallagher, and Harry
Wilson, the head of turnaround and restructuring firm MAEVA
Advisors, are representing the Teamsters union.

Attorneys for The Bakery, Confectionery, Tobacco Workers and Grain
Millers International Union and Bakery & Confectionery Union &
Industry International Pension Fund are Jeffrey R. Freund, Esq.,
at Bredhoff & Kaiser, P.L.L.C.; and Ancela R. Nastasi, Esq., David
A. Rosenzweig, Esq., and Camisha L. Simmons, Esq., at Fulbright &
Jaworski L.L.P.

An official committee of unsecured creditors has been appointed in
the case.  The committee selected New York law firm Kramer Levin
Naftalis & Frankel LLP as its counsel. Tom Mayer and Ken Eckstein
head the legal team for the committee.


IDEARC INC: Verizon Bid to Shake Fraudulent Transfer Claims Denied
------------------------------------------------------------------
Liz Hoffman at Bankruptcy Law360 reports that a Texas federal
judge on Monday denied Verizon Communications Inc.'s bid to shake
four fraudulent transfer claims brought by U.S. Bank NA related to
the $9.9 billion spinoff in 2009 of Idearc Inc., which later filed
for bankruptcy under the weight of Verizon's flagging Yellow Pages
business.

Bankruptcy Law360 relates that Verizon was seeking summary
judgment on four of the 11 causes of action that remain in the
case, brought by U.S. Bank, acting as trustee for the Idearc
estate.

                         About Idearc Inc.

Headquartered in D/FW Airport, Texas, Idearc, Inc., now known as
SuperMedia Inc., is the second largest U.S. yellow pages
publisher.  Idearc was spun off from Verizon Communications, Inc.

Idearc and its affiliates filed for Chapter 11 protection on
March 31, 2009 (Bankr. N.D. Tex. Lead Case No. 09-31828).  The
Debtors' financial condition as of Dec. 31, 2008, showed total
assets of $1,815,000,000 and total debts of $9,515,000,000.
Toby L. Gerber, Esq., at Fulbright & Jaworski, LLP, represented
the Debtors in their restructuring efforts.  The Debtors tapped
Moelis & Company as their investment banker; Kurtzman Carson
Consultants LLC as their claims agent.

William T. Neary, the United States Trustee for Region 6,
appointed six creditors to serve on the official committee of
unsecured creditors.  The Committee selected Mark Milbank, Tweed,
Hadley & McCloy LLP, as counsel, and Haynes and Boone, LLP, co-
counsel.

Idearc completed its debt restructuring and its plan of
reorganization became effective as of Dec. 31, 2009.  In
connection with its emergence from bankruptcy, Idearc changed its
name to SuperMedia Inc.  Under its reorganization, Idearc reduced
its total debt from more than $9 billion to $2.75 billion of
secured bank debt.

Less than two years since leaving bankruptcy protection,
SuperMedia remains in quandary.  Early in October 2011, Moody's
Investors Service slashed its corporate family rating for
SuperMedia to Caa1 from B3 prior.  The downgrade reflects Moody's
belief that revenues will continue to decline at a double digit
rate for the foreseeable future, leading to a steady decline in
free cash flow.  SuperMedia's sales were down 17% for the second
quarter of 2011 in a generally improving advertising sector.
Moody's ratings outlook for SuperMedia remains negative.

While SuperMedia is attempting to transition the business away
from its reliance on print advertising through development of
online and mobile directory service applications, Moody's is
increasingly concerned that the company will not be able to make
this change quickly enough to stabilize the revenue base over the
intermediate term. Further, the high fixed cost nature of
SuperMedia's business could lead to steep margin compression,
notwithstanding continued aggressive cost management.


INGRAM MICRO: Moody's Rates Preferred Stock Shelf '(P)Ba2'
----------------------------------------------------------
Moody's Investors Service assigned a Baa3 rating to Ingram Micro,
Inc.'s proposed $300 million senior unsecured notes and affirmed
Ingram Micro's Baa3 rating. The rating outlook remains stable. The
company intends to use the net proceeds for general corporate
purposes, which may include funding a portion of its pending $840
million acquisition of Brightpoint, Inc.

Ratings Rationale

The Baa3 rating reflects Ingram Micro's position as the largest
broad-based technology distributor, with the expectation of
continued solid operating performance in its core North American
markets (about 42% of revenue), as well as in the higher growth
regions of Asia-Pacific and Latin America. The rating also
recognizes Ingram Micro's improving product and services mix,
expanding presence in higher margin adjacent segments (e.g., data
capture/point of sale, fee-for-service logistics, mobility and
enterprise technology) and efforts to streamline the cost
structure.

The acquisition, which is expected to close by the end of the
year, furthers Ingram Micro's credit positive strategic
initiatives to expand its presence in the higher-growth mobility
and higher-margin logistics, repair and refurbishment businesses.
Moody's expects the Brightpoint acquisition to bring new customer
and supplier relationships to Ingram Micro, strengthen its
presence with existing clients and vendors, and expand its
portfolio of mobility products, particularly in media tablets and
smartphones. Although pro forma leverage will increase from the
current debt-to-EBITDA ratio of 1.6x (which reflects Moody's
adjustments) to approximately 1.8x, it will remain well under
Moody's upper threshold of 2.5x for its rating.

However, Moodys' notes that Ingram Micro has significant
international accounts payable balances at its foreign
subsidiaries, which are deemed structurally senior to the general
unsecured debt at the parent company. Should Ingram Micro's credit
profile deteriorate or the proportion of unsupported/unguaranteed
parent debt relative to the international trade payables changes,
the rating of the unsecured notes may be notched down from the
current Baa3 level.

The stable outlook reflects Moody's expectations that Ingram
Micro's vendor/customer relationships will remain relatively
steady, adjusted operating margins will stay within a range of
1.3% to 1.6% (on average) and retained cash flow to debt (Moody's
adjusted) will remain at or above 25%. Additionally, the stable
outlook reflects Moody's expectation that Ingram Micro will
maintain leverage at or below 2.5x (Moody's adjusted), fund share
buybacks and acquisitions within the cash generating capabilities
of the business and maintain cash balances in a range of at least
$300 to $500 million.

Rating assigned:

  $300 Million Senior Unsecured Notes -- Baa3

Ratings affirmed:

  Long-Term Senior Unsecured Rating -- Baa3

  $300 Million Senior Global Notes due 2017 -- Baa3

  Senior Notes/Preferred Stock Shelf Registration --
  (P)Baa3/(P)Ba2

The assigned rating is subject to review of final documentation
and no material change in the terms and conditions of the
transaction as advised to Moody's. Ingram Micro intends to use the
debt offering proceeds for general corporate purposes, which may
include funding a portion of the BrightPoint acquisition..

The last rating action was on August 16, 2010 when Moody's
assigned a Baa3 rating to Ingram Micro's $300 Million new senior
notes.

The principal methodologies used in rating Ingram Micro was Global
Distribution and Supply Chain Services published in November 2011.

Ingram Micro, headquartered in Santa Ana, California, is the
largest global information technology (IT) wholesale distributor
providing sales, marketing, and supply chain solutions for the IT
industry worldwide. The company offers various IT products,
including peripherals, systems, networking, software, logistic
services, consumer electronics, and more recently data capture,
point-of-sale (POS), and high-end home technology products.


INNOVATION VENTURES: S&P Assigns 'B-' Corp. Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-' corporate
credit rating to Farmington Hills, Mich.-based Innovation Ventures
LLC. The outlook is stable.

"We also assigned a 'B-' issue-level rating to the company's $450
million senior secured notes due 2019. The notes will be issued
under Rule 144a with registration rights. The recovery rating on
this debt is '3', indicating our expectation for meaningful (50%
to 70%) recovery in the event of a payment default. The company
has increased the amount of debt issuance -- it had previously
proposed $400 million in new debt," S&P said.

"The company will use one-half of the proceeds to build a
manufacturing plant and support new product development, and the
remaining half will fund international expansion and acquisitions,
which are currently unspecified," S&P said.

"The ratings on Innovation Ventures reflect our view that it has a
'highly leveraged' financial risk profile. The company's very
aggressive financial policy and that Innovation Ventures'
ownership is highly concentrated with the founder and CEO
constrain our financial risk assessment. Directly and indirectly
he controls a supermajority of the equity capital and has the
primary discretion over financial policy decisions," S&P said.

"The outlook is stable. We expect Innovation Ventures' operating
performance and key credit measures to be relatively steady
following the proposed notes issuance," said Standard & Poor's
credit analyst Nalini Saxena.

"We could consider a downgrade if the company were to engage in an
even more aggressive financial policy, specifically debt-financed
shareholder dividends to the detriment of reinvesting in the
longer term growth of the business. Given the company's product
concentration, in the event of negative publicity -- perhaps
coupled with a product recall -- and a resulting compromise of
operational performance (including an EBITDA decline of more than
30%), we could also consider a downgrade," S&P said.

"Although less likely over the next 12 months, we could consider
an upgrade if the company were to strengthen its financial
profile, specifically its governance, through the institution of a
board of directors such that policy decisions would no longer be
limited to the sole discretion of one party," S&P said.


IRON MOUNTAIN: Moody's Rates $950MM Sr. Subordinated Notes 'B1'
---------------------------------------------------------------
Moody's Investors Service assigned a B1 rating to $950 million of
senior subordinated notes offered by Iron Mountain Incorporated.
No other ratings were impacted, including Iron Mountain's Ba3
Corporate Family Rating ("CFR") and SGL-3 Speculative Grade
Liquidity Rating. The ratings outlook remains negative.

Proceeds from the new notes due 2024 will be used to: (i) repay
the $318 million 6.625% notes due 2016, (ii) repay the $200
million 8.75% notes due 2018, (iii) pay fees and expenses,
including premiums, (iv) pay down the $268 million outstanding
balance on the revolver, and (v) add approximately $143 million of
cash to the balance sheet to fund upcoming REIT conversion costs
and for general corporate purposes.

Rating assigned to Iron Mountain Incorporated (and Loss Given
Default assessment):

Proposed $950 million senior subordinated notes due 2024, B1
(LGD4, 63%)

Existing ratings of Iron Mountain Incorporated (and LGD
assessments):

Corporate Family Rating, Ba3

Probability of Default Rating, Ba3

Speculative Grade Liquidity Rating, SGL-3

Senior subordinated shelf expiring 2013, (P)B1

GBP150 million 7.25% senior subordinated notes due 2014, B1 (LGD4,
to 63% from 64%)

$318 million 6.625% senior subordinated notes due 2016, B1 (LGD4,
to 63% from 64%) -- rating to be withdrawn upon closing

$200 million 8.75% senior subordinated notes due 2018, B1 (LGD4,
to 63% from 64%) -- rating to be withdrawn upon closing

EUR 225 million 6.75% senior subordinated notes due 2018, B1
(LGD4, to 63% from 64%)

$400 million 7.75% senior subordinated notes due 2019, B1 (LGD4,
to 63% from 64%)

$300 million 8% senior subordinated notes due 2020, B1 (LGD4, to
63% from 64%)

$548 million 8.375% senior subordinated notes due 2021, B1 (LGD4,
to 63% from 64%)

Existing rating of Iron Mountain Nova Scotia Funding Company (and
LGD assessment):

C$175 million 7.5% senior subordinated notes due 2017, B1 (LGD4,
to 63% from 64%)

Existing rating of Iron Mountain Information Management, Inc. (and
LGD assessment):

$725 million senior secured revolver due 2016, Baa3 (LGD1, to 7%
from 8%)

$500 million senior secured term loan A due 2016, Baa3 (LGD1, to
7% from 8%)

Ratings Rationale

The transaction adds approximately $430 million of funded debt to
the balance sheet, which was anticipated as part of the REIT
conversion process. While interest expense and cash flow will be
impacted by the incremental interest burden, the refinancing will
improve Iron Mountain's debt maturity schedule and liquidity
profile upon closing. Nonetheless, Moody's expects that the excess
cash balance will be depleted and a portion of the $725 million
revolver will be tapped over the next twelve months to fund
special dividends, tax recapture payments, and other one-time
conversion costs related to the REIT process. Revolver
availability may be further reduced by diminishing covenant
cushion on the fixed charge coverage ratio. A proposed amendment
to the credit facility will allow for certain REIT special charges
to be excluded from the calculation of fixed charges. However,
Moody's expects cushion under the 1.2 times fixed charge covenant
to become modest in the second half of 2013 due primarily to
rising interest expense.

"Part of Iron Mountain's long-term plan as a REIT is to lower
financial leverage, which could be credit positive if executed,"
stated Moody's analyst Suzanne Wingo.

The Ba3 CFR reflects Iron Mountain's large and recurring revenue
base, which is diversified geographically and by customer. Its
well-established brand and considerable market share in North
America has enabled pricing power and a consolidated EBITDA margin
of about 30%. However, the document storage business faces secular
pressures stemming from the gradual shift away from paper towards
electronic media. In mature markets in particular, Moody's
believes it may become increasingly difficult for Iron Mountain to
offset volume weakness with price increases.

The negative outlook reflects near-term liquidity constraints
resulting from the high cash costs necessary to convert to a REIT.
Additionally, the outlook considers the uncertainties in financial
policies and capital structure going forward should the REIT
conversion not be approved. The outlook could be raised to stable
if the REIT conversion becomes more certain and if Iron Mountain
improves its liquidity profile. The issuance of equity to reduce
financial leverage could also have a positive impact on the
ratings. The ratings could eventually be upgraded if the company
achieves its operational goals in the international business while
maintaining at least modestly positive consolidated revenue
growth, such that financial leverage can be sustained below 4
times on a Moody's adjusted basis. Conversely, the ratings could
be lowered if the REIT conversion is unsuccessful and changes in
financial policy are expected to cause financial leverage to reach
5 times on a sustained basis.

The principal methodology used in rating Iron Mountain
Incorporated was the Global Business & Consumer Service Industry
Methodology published in October 2010. Other methodologies used
include Loss Given Default for Speculative-Grade Non-Financial
Companies in the U.S., Canada and EMEA published in June 2009.

Headquartered in Boston, Massachusetts, Iron Mountain is an
international provider of information storage and related
services. Annual revenues are approximately $3 billion.


IRON MOUNTAIN: S&P Affirms 'BB-' Corp. Credit Rating; Outlook Neg
-----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed all of its ratings on
Boston-based information storage company Iron Mountain Inc.,
including the 'BB-' corporate credit rating. "At the same time, we
removed all ratings from CreditWatch, where they were placed with
negative implications on June 7, 2012. The rating outlook is
negative," S&P said.

"In addition, we assigned a 'B+' rating to the company's proposed
$950 million senior subordinated notes with a recovery rating of
'5', indicating our expectation of modest (10% to 30%) recovery
for lenders in the event of a payment default. The company is
expected to use the proceeds of the notes to redeem its 8.75%
notes due 2018, to call its 6.625% notes due 2016, to repay
borrowings under its revolving credit facility, and for general
corporate purposes, including covering costs related to its
planned conversion to a Real Estate Investment Trust(REIT)," S&P
said.

"We removed the ratings from CreditWatch with negative
implications because the proposed amendment will improve the
company's margin of compliance with its fixed-charge covenant,"
explained Standard & Poor's credit analyst Tulip Lim.

"The rating on Iron Mountain reflects Standard & Poor's view that
the company's financial risk profile is 'aggressive' (based on our
criteria), a function of its still-high leverage, relative capital
intensity, and its increased shareholder return orientation. Our
business profile assessment on the company is 'fair,' reflecting
our view that Iron Mountain's business benefits from its market
leadership and a strong base of recurring revenue," S&P said.

"However," added Ms. Lim, "we believe that the company's revenue
will decline somewhat because of unfavorable foreign exchange
rates and paper prices as well as both pressure on the core
storage business from migration to digital storage and the
sluggish economy."

"The negative outlook reflects our expectation that leverage will
increase as a result of costs related to the REIT conversion. We
could lower the ratings if leverage rises materially or if we
conclude that business and financial flexibility will decrease if
the company converts to a REIT," S&P said.

"We could revise our outlook to stable if the company decides not
to pursue the REIT conversion and financial policy does not become
more aggressive, or if we conclude that business and financial
flexibility will not be materially reduced if the company converts
to a REIT."


JANLAW PROPERTIES: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Janlaw Properties, Inc.
        5353 Alpha Road, Suite 200
        Dallas, TX 75240

Bankruptcy Case No.: 12-42102

Chapter 11 Petition Date: August 6, 2012

Court: United States Bankruptcy Court
       Eastern District of Texas (Sherman)

Judge: Brenda T. Rhoades

Debtor's Counsel: Joyce W. Lindauer, Esq.
                  8140 Walnut Hill Lane
                  Suite 301
                  Dallas, TX 75231
                  Tel: (972) 503-4033
                  Fax: (972) 503-4034
                  E-mail: courts@joycelindauer.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $500,001 to $1,000,000

The Debtor did not file a list of its largest unsecured creditors
together with its petition.

The petition was signed by Harold Baeck, president.

Affiliate that filed separate Chapter 11 petition:

                                                 Petition
   Debtor                              Case No.     Date
   ------                              --------     ----
Zimcal Corp.                           12-42104   08/06/12


K-V PHARMACEUTICAL: Class A&B Common Stock Begin Trading
--------------------------------------------------------
K-V Pharmaceutical Company disclosed that its Class A and Class B
common shares have begun trading on the OTCQB Marketplace.

The Company's Class A and Class B common shares are trading on the
OTCQB Marketplace under the symbols "KVPHA" and "KVPHB,"
respectively.

The transition to the OTCQB Marketplace comes after the Company's
Class A and Class B common shares were suspended, pending
delisting, from the NYSE as a result of the Company's voluntary
filing for protection under Chapter 11 of the U.S. bankruptcy Code
on Aug. 4, 2012.

                  About K-V Pharmaceutical Company

KV Pharmaceutical Company (NYSE: KVa/KVb) --
http://www.kvpharmaceutical.com/-- is a fully integrated
specialty pharmaceutical company that develops, manufactures,
markets, and acquires technology-distinguished branded and
generic/non-branded prescription pharmaceutical products.  The
Company markets its technology distinguished products through
ETHEX Corporation, a subsidiary that competes with branded
products, and Ther-Rx Corporation, the company's branded drug
subsidiary.

K-V Pharmaceutical Company and certain domestic subsidiaries on
Aug. 4 filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Lead
Case No. 12-13346, under K-V Discovery Solutions Inc.) to
restructure their financial obligations.

K-V has retained the services of Willkie Farr & Gallagher LLP as
bankruptcy counsel, Williams & Connolly LLP as special litigation
counsel, and SNR Denton as special litigation counsel.  In
addition, K-V has retained Jefferies & Co., Inc., as financial
advisor and investment banker.  Epiq Bankruptcy Solutions LLC is
the claims and notice agent.

K-V Pharmaceutical said it continues to operate during the
reorganization.


KNIGHT CAPITAL: Turned Down Rival Citadel's $500-Mil. Loan Offer
----------------------------------------------------------------
The Wall Street Journal's Telis Demos and Jenny Strasburg report
that people familiar with the discussions said Citadel LLC made a
$500 million loan offer to competitor Knight Capital Group Inc. on
Sunday, hours before Knight finalized a $400 million
recapitalization by a group of investors.

The sources told WSJ that the Citadel offer, which was considered
and discussed by Knight's board, was for a $500 million loan to
Knight in exchange for a controlling stake in Knight's currencies
trading platform Hotspot FX, plus a minority stake in the company
of less than 20%.  It followed an earlier offer on Friday, which
Knight also reviewed, they said.

The sources told WSJ the Citadel offer represented the potential
for lesser dilution to existing Knight shareholders, by giving
Citadel the right to as much as a 20% stake in the company, far
less than the 73% stake anticipated in the investor group's deal.

According to WSJ, the people familiar with Knight's thinking said
Knight and its advisers believed there wasn't enough time to
complete Citadel's deal.  Further, the sources said, the Knight
board and advisers viewed the Citadel terms as onerous for
shareholders and the company, which not only would have had to
repay the loan, but also surrender control of Hotspot, a "crown
jewel" asset. The board also disagreed with Citadel's valuation of
Hotspot, the people said.

According to the report, some people familiar with Knight's
thinking said that by Sunday, the board was in the late stages of
considering a deal to sell $400 million in convertible securities
to a group of investors, including customer TD Ameritrade Holding
Corp., private-equity firm Blackstone Group LP, and trading firm
Getco LLC.  The board ultimately decided to back that deal.

WSJ reports a spokeswoman for Knight said: "Knight explored a wide
range of alternatives. After a thorough review, Knight determined
that the $400 million equity investment was the best and only
alternative for the company and its shareholders."

Jacob Bunge, Anupreeta Das and Telis Demos reported earlier that
Knight reached an agreement with investors for a $400 million
lifeline after a glitch cost the trading firm $440 million last
week.  Knight agreed to a $400 million rescue plan that would help
fill a $440 million hole left by a trading glitch last week.

The Securities and Exchange Commission said it is investigating
the incident.

WSJ relates the group of six investors include investment bank
Jefferies Group Inc., Blackstone, TD Ameritrade, and Knight rival
Getco, took effective control, getting securities representing
potential ownership of about 73% of the company.  Jefferies will
become Knight's largest shareholder, having put up about $100
million of the rescue package.

WSJ also reports J.P. Morgan Chase on Monday allowed Knight to
draw $200 million on a credit line.

                      About Knight Capital

Knight Capital Group (NYSE Euronext: KCG) --
http://www.knight.com/-- is a global financial services firm that
provides access to the capital markets across multiple asset
classes to a broad network of clients, including broker-dealers,
institutions and corporations.  Knight is headquartered in Jersey
City, N.J. with a global presence across the Americas, Europe, and
the Asia Pacific regions.

At the start of trading on Aug. 1, Knight Capital m installed a
trading software to push itself onto a new trading platform that
the New York Stock Exchange opened that day.  But when Knight's
new system went live, the firm "experienced a human error and/or a
technology malfunction related to its installation of trading
software."  The error caused Knight to place unauthorized offers
to buy and sell shares of big American companies, driving up the
volume of trading and causing a stir among traders and exchanges.
The orders affected the shares of 148 companies, including Ford
Motor, RadioShack and American Airlines, sending the markets into
upheaval.  Knight had to sell the stocks that it accidentally
bought, prompting a $440 million pre-tax loss, the firm announced
Aug. 2.

Knight Capital averted collapse after announcing Aug. 6 that it
has arranged $400 million in equity financing with Wall Street
firms including Jefferies Group, Inc., which conceived and
structured the investment, as well as Blackstone, GETCO LLC,
Stephens, Stifel Financial Corp. and TD Ameritrade Holding
Corporation.

Knight has said that the software that led to the Aug. 1 trading
issue has been removed from the company's systems. The New York
Stock Exchange nonetheless said Aug. 7 said it "temporarily"
reassigned the firm's market-making responsibilities for more than
600 securities to Getco, the high-speed trading firm that also
invested in Knight.


LEAGUE NOW: M. Barton Quits from Board; J. Charles Fills Vacancy
----------------------------------------------------------------
Mario Barton resigned from the board of directors of League Now
Holdings Corporation on Aug. 3, 2012.  In his letter of
resignation, Mr. Barton did not indicate that there were any
disagreements between himself and the Company's board of directors
regarding the Company's operations, policies or practices.

Also on Aug. 3, 2012, Mr. Joe Charles, the Company's President was
elected to the Company's board of directors to fill the vacancy
created by the resignation of Mr. Barton.

Joe Charles was appointed President of the Company's wholly-owned
subsidiary, Infiniti Systems Group in July 2012.  Prior joining
the Company, Mr. Charles was President of JLC Services, Inc., in
Akron, Ohio.  He was responsible for all of that Company's sales
and operations, including software design, service and support.

From 2000-2002,  Mr. Charles was the Vice President of ISG's
Infrastructure Division, responsible for all sales, marketing and
delivery to clients.  Prior to that Mr. Charles was President of
Sigma Design, Inc., an International Architecture Computer Aided
Design Software firm in Boston Massachusetts.  Mr. Charles started
his career founding Northeast CAD Systems a national Computer
Aided Design and Drafting software reseller and services firm in
Cleveland, Ohio.

Mr. Charles has a bachelor's degree in computer sciences and
business management from Kent State University.

Mr. Charles does not have a family relationship with any director
or executive officer of the Company, nor with any of its
affiliates, nor are there any arrangements or understandings
between him and any other person with respect to his election to
the board of directors.

                          About League Now

Brecksville, Ohio-based League Now Holdings Corporation, through
its subsidiary, Infiniti Systems Group, Inc., provides technology
integration services to businesses in the midwestern United
States.

The Company's balance sheet at March 31, 2012, showed
$1.25 million in total assets, $1.40 million in total liabilities,
and a stockholders' deficit of $151,668.

As reported in the TCR on April 23, 2012, Harris F. Rattray CPA,
in Pembroke Pines, Florida, expressed substantial doubt about
League Now's ability to continue as a going concern, following the
Company's results for the fiscal year ended Dec. 31, 2011.  The
independent auditor noted that the Company has incurred
accumulated net losses of $207,200 and needs to raise
additional funds to meet its obligations and sustain its
operations.


LEVEL 3: Files Form 10-Q; Incurs $62 Million Net Loss in Q2
-----------------------------------------------------------
Level 3 Communications, Inc., filed with the U.S. Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing
a net loss of $62 million on $1.58 billion of revenue for the
three months ended June 30, 2012, compared with a net loss of $181
million on $913 million of revenue for the same period a year ago.

The Company reported a net loss of $200 million on $3.17 billion
of revenue for the six months ended June 30, 2012, compared with a
net loss of $386 million on $1.82 billion of revenue for the same
period during the prior year.

The Company's balance sheet at June 30, 2012, showed $12.94
billion in total assets, $11.73 billion in total liabilities and
$1.21 billion in total stockholders' equity.

A copy of the Form 10-Q is available for free at:

                       http://is.gd/0Q2m9q

                  About Level 3 Communications

Headquartered in Broomfield, Colorado, Level 3 Communications,
Inc., is a publicly traded international communications company
with one of the world's largest communications and Internet
backbones.

The Company reported a net loss of $756 million in 2011, a net
loss of $622 million in 2010, and a net loss of $618 million in
2009.

                          *     *     *

As reported by the TCR on April 2, 2012, Fitch Ratings upgraded
Level-3 Communications' Issuer Default Rating to 'B' from 'B-' on
Oct. 4, 2011, and assigned a Positive Outlook.  The rating action
followed LVLT's announcement that the company closed on its
previously announced agreement to acquire Global Crossing Limited
(GLBC) in a tax-free, stock-for-stock transaction.

In the July 20, 2012, edition of the TCR, Moody's Investors
Service affirmed Level 3 Communications, Inc.'s corporate family
and probability of default ratings at B3.  The company's B3
ratings are based on expectations that net synergies from the
recently closed acquisition of Global Crossing Ltd. will reduce
expenses sufficiently such that Level 3 will be modestly cash flow
positive (on a sustained basis) by late 2013.

Level 3 carries a 'B-' corporate credit rating from Standard &
Poor's Ratings Services.


LEVEL 3: Completes Offering of $300 Million Senior Notes
--------------------------------------------------------
Level 3 Communications, Inc., has completed its previously
announced offering of $300 million aggregate principal amount of
its 8.875% Senior Notes due 2019 in a private offering to
"qualified institutional buyers," as defined in Rule 144A under
the Securities Act of 1933, as amended, and non-U.S. persons
outside the United States under Regulation S under the Securities
Act of 1933.

On Aug. 1, 2012, Level 3 entered into an indenture with The Bank
of New York Mellon Trust Company, N.A., as trustee, in connection
with Level 3's issuance of $300,000,000 Senior Notes.  A copy of
the Indenture is available for free at http://is.gd/VhBLdE

The notes will mature on June 1, 2019.  The net proceeds from the
offering of the notes will be used for general corporate purposes,
including the potential repurchase, redemption, repayment or
refinancing of Level 3 Communications, Inc.'s and its
subsidiaries' existing indebtedness from time to time.

The notes are not registered under the Securities Act of 1933 or
any state securities laws and, unless so registered, may not be
offered or sold except pursuant to an applicable exemption from
the registration requirements of the Securities Act of 1933 and
applicable state securities laws.

                    About Level 3 Communications

Headquartered in Broomfield, Colorado, Level 3 Communications,
Inc., is a publicly traded international communications company
with one of the world's largest communications and Internet
backbones.

The Company reported a net loss of $756 million in 2011, a net
loss of $622 million in 2010, and a net loss of $618 million in
2009.

The Company's balance sheet at June 30, 2012, showed $12.94
billion in total assets, $11.73 billion in total liabilities and
$1.21 billion in total stockholders' equity.

                          *     *     *

As reported by the TCR on April 2, 2012, Fitch Ratings upgraded
Level-3 Communications' Issuer Default Rating to 'B' from 'B-' on
Oct. 4, 2011, and assigned a Positive Outlook.  The rating action
followed LVLT's announcement that the company closed on its
previously announced agreement to acquire Global Crossing Limited
(GLBC) in a tax-free, stock-for-stock transaction.

In the July 20, 2012, edition of the TCR, Moody's Investors
Service affirmed Level 3 Communications, Inc.'s corporate family
and probability of default ratings at B3.  The company's B3
ratings are based on expectations that net synergies from the
recently closed acquisition of Global Crossing Ltd. will reduce
expenses sufficiently such that Level 3 will be modestly cash flow
positive (on a sustained basis) by late 2013.

Level 3 carries a 'B-' corporate credit rating from Standard &
Poor's Ratings Services.


LON MORRIS: $750,000 Amegy Bank DIP Loan Approved
-------------------------------------------------
Lon Morris College obtained an order allowing it to obtain up to
$750,000 of DIP financing from Amegy Bank National Association.
The $750,000 loan includes the $250,000 funded prepetition.  Amegy
is already owed the principal of $2.12 million for loans made to
the Debtor prepetition secured by assets of the Debtor.  The Final
DIP order entered July 24 also authorized the Debtor to use cash
that constitutes as Amegy's cash collateral.

                     About Lon Morris College

Lon Morris College was founded in 1854 as a not-for-profit
religiously affiliated two-year degree granting institution.  Over
the past 158 years, the College has impacted the lives of
countless members of the local Jacksonville community in Texas.

Lon Morris College filed a Chapter 11 petition (Bankr. E.D. Tex.
Case No. 12-60557) in Tyler, on July 2, 2012, after lacking enough
endowments to pay teachers, vendors and creditors.  In May 2012,
the Debtor missed two payrolls and vendor payables, utilities, and
long term debt were also past due.  From a headcount of 1,070 in
2010, enrolments have been down to 547 in 2012.  The president of
the College has resigned, as have members of the board of
trustees.

Judge Bill Parker oversees the case.  Bridgepoint Consulting LLC's
Dawn Ragan took over management of the College as chief
restructuring officer.  Attorneys at McKool Smith P.C., and Webb
and Associates serve as counsel to the Debtor.

According to its books, on April 30, 2012, the College had roughly
$35 million in assets, including $11 million in endowments and
restricted funds, and $18 million in funded debt and $2 million in
trade and other liabilities.

Amegy Bank is represented in the case by James Matthew Vaughn,
Esq., at Porter Hedges LLP.


LORING ESTATES: Four More Kontogiannis Entities File Chapter 11
---------------------------------------------------------------
Long Island real estate developer Thomas Kontogiannis on Aug. 7
filed in bankruptcy court in Brooklyn (Bankr. E.D.N.Y.) Chapter 11
petitions for four entities:

      Debtor                        Case No.
      ------                        --------
    Loring Estates LLC              12-45757
    Edgewater Development, Inc.     12-45759
    Group Kappa Corp.               12-45761
    Plaza Real Estate Holding Inc   12-45764

Each of the Debtors disclosed debt of $48.27 million to DLJ
Mortgage Capital, Inc., on a bank loan.

The Chapter 11 petitions say the entities are related to Halifax
Group.   Halifax Group LLC filed a bare-bones Chapter 11 petition
(Bankr. E.D.N.Y. Case No. 12-45736) on Aug. 6, 2012.  Gregory
Holland, as president, signed Halifax's Chapter 11 petition.
Halifax owns properties in Brooklyn.

In October 2011, the U.S. District Court in Brooklyn sentenced Mr.
Kontogiannis to 9 years imprisonment for leading a mortgage fraud
conspiracy resulting in more than $98 million in losses.

The U.S. attorney for New York's Eastern District said Mr.
Kontogiannis defrauded Washington Mutual Bank and DLJ Mortgage
Capital, a subsidiary of Credit Suisse, in connection with his
development of two tracts of land in Brooklyn and Queens.  He
purchased and subdivided Loring Estates, located in East New York,
Brooklyn, and Edgewater Development, located in College Point,
Queens, and then staged sales of the properties financed by
mortgage loans to straw buyers.  Mr. Kontogiannis directed others
to prepare false loan files to create the appearance that the
straw buyers were creditworthy homeowners.  The mortgages were
supported by fraudulent appraisals depicting finished homes, when
the buildings had yet to be built or had fictional addresses, and
the mortgage files contained fraudulent title abstract reports and
other documentation designed to indicate that the seller, a
Kontogiannis-controlled entity, had clear title to convey and that
the lender's interest was protected by title insurance.

U.S. Attorney Loretta Lynch said the loans were financed by
lenders controlled by Mr. Kontogiannis, including InterAmerican
Mortgage Corp., later known as CIP Mortgage Corp. and Coastal
Capital Corp.  After the loans were closed, Mr. Kontogiannis
ensured that the mortgages and deeds were not recorded, thereby
permitting him to "sell" the same property repeatedly.
Eventually, Mr. Kontogiannis sold the loans to WAMU or DLJ.

In an effort to conceal the multiple sales of the same properties,
Mr. Kontogiannis changed the addresses of properties located in
East New York, Brooklyn, to addresses in neighboring Howard Beach,
Queens. In addition, he directed others to make monthly payments
on the mortgages, ensuring that none of the mortgages became
delinquent. The payments ceased in 2007, with roughly $98 million
in principal outstanding on the fraudulent mortgages, Ms. Lynch
said.

Mr. Kontogiannis was previously jailed for previously jailed for
laundering bribes to a California congressman.


LORING ESTATES: Case Summary & Unsecured Creditors
--------------------------------------------------
Debtor: Loring Estates LLC
        One Cross Island Plaza Suite LL6
        Rosedale, NY 11422

Bankruptcy Case No.: 12-45757

Chapter 11 Petition Date: August 7, 2012

Court: United States Bankruptcy Court
       Eastern District of New York (Brooklyn)

Judge: Nancy Hershey Lord

Debtor's Counsel: Narissa A. Joseph, Esq.
                  LAW OFFICE OF NARISSA JOSEPH
                  277 Broadway, Suite 501
                  New York, NY 10007
                  Tel: (212) 233-3060
                  Fax: (212) 608-0304
                  E-mail: njosephlaw@aol.com

Scheduled Assets: $9,300,000

Scheduled Liabilities: $53,090,698

Affiliates that simultaneously filed for Chapter 11:

  Debtor                        Case No.
  ------                        --------
Edgewater Development, Inc.     12-45759
   Assets: $10,000,001 to $50,000,000
   Debts: $50,000,001 to $100,000,000
Group Kappa Corp.               12-45761
   Assets: $1,000,001 to $10,000,000
   Debts: $0 to $50,000
Plaza Real Estate Holding Inc   12-45764
   Assets: $1,000,001 to $10,000,000
   Debts: $10,000,001 to $50,000,000

The petitions were signed by Thomas Kontogiannis, president.

A. Loring Estates' List of 19 Unsecured Creditors:

Entity                   Nature of Claim        Claim Amount
------                   ---------------        ------------
DLJ                       --                     $48,267,204
Hahn & Hessen
488 Madison Avenue
New York, NY 10022

CNS Construction Mgt,Inc. --                     $2,566,940
CANUSA Construction
Mgt,Inc
13333 Brooklville
Plaza, NY 11422

Canusa Realty Corp        --                     $2,096,554

Toffales Insurance        --                     $40,400
Agency

Tuffles Insurance Co.     --                     $22,775

Moseson Associates        --                     $21,000

Con Edison                --                     $15,075

Thermal Tech Doors Inc.   --                     $15,000

Leonard J. Strandberg &   --                     $14,327
Associates

Master Plumbing           --                     $8,431

Con Edison 1              --                     $6,836

Nyc Water Board           --                     $5,625

National Grid 1           --                     $3,965

Nyc Department of         --                     $3,100
Buildings

NYC Department of         --                     $2,034
Environmental Protection

Bisset Nursery Corp.      --                     $985

Con Edison                --                     $261

Clearview Abstract        --                     $125

Coastal Capital           --                     $57


B. Edgewater Development's List of 14 Unsecured Creditors:

Entity                   Nature of Claim        Claim Amount
------                   ---------------        ------------
DLJ Hahn & Hessen         Bank loan              $48,267,204
488 Madison Avenue
NY, NY 10022

Stoute Street Funding     Bank loan              $257,000
1200 17th Street
Denver, CO 80202

Florence Corp             --                     $70,568
1647 East Jericho
Turnpike
Huntington, NY 11743-5711

M G Systems Inc.          --                     $32,000

Tuffanies Insurance       Bank loan              $22,775
Company

Feldman Lumber            --                     $18,937

All Standard Corp.        --                     $9,868

Marjam Supply Co.         --                     $4,199

Raw Equipment Corp.       --                     $4,018

Standard Funding Corp.    Bank loan              $3,831

Standard Funding Corp.    Bank loan              $3,831

Con Edison                --                     $3,135

Almar Supplies Inc.       --                     $2,008

Four Suns Fuel Oil        --                     $350
Co. Inc.


C. Group Kappa's Largest Unsecured Creditor:

Entity                   Nature of Claim        Claim Amount
------                   ---------------        ------------
New York Dept of Finance                         $11,868
345 Adam Street, 3rd Floor
Brooklyn, NY 11201


D. Plaza Real's List of Six Unsecured Creditors:

Entity                   Nature of Claim        Claim Amount
------                   ---------------        ------------
DLJ Hahn & Hessen         Bank loan              $48,267,204
488 Madison Avenue
NY, NY 10022

Master Plumbling and      Bank loan              $17,632
Heating
25-18 50th Street
Woodside, NY 11377

Con Edison                Bank loan              $11,101
4 Irving Place
Room 1875-S
New York, NY 10003

Cooper, Paroff,           Bank loan              $10,425
Cooper & Cook

National Grid             Trade debt             $8,134

My Carpet                 Bank loan              $4,172


LOWER BUCKS: BNY Appeals Court Decision Over $8 Million Claim
-------------------------------------------------------------
Matt Fair at Bankruptcy Law360 reports that BNY Mellon Trust Co.,
an indenture trustee representing bondholders owed money for a
$36 million renovation project at a suburban Philadelphia
hospital, asked a federal judge on Friday to overturn a bankruptcy
court?s decision shooting down a disputed $8.1 million payment to
the creditors.

Lower Bucks Hospital is a non-profit hospital based in Bristol,
Pennsylvania.  The Hospital is licensed to operate 183 beds.
Together with affiliates Advanced Primary Care Physicians and
Lower Bucks Health Enterprises, Inc., Lower Bucks owns a 36-acre
campus with several medical facilities.  The Hospital's emergency
room serves 30,000 patients annually.  For the fiscal year ending
June 30, 2009, Lower Bucks had $114 million in consolidated
revenues.

The Hospital filed for Chapter 11 bankruptcy protection (Bankr.
E.D. Pa. Case No. 10-10239) on Jan. 13, 2010.  The Hospital's
affiliates -- Lower Bucks Health Enterprises, Inc, and Advanced
Primary Care Physicians -- also filed Chapter 11 petitions.
Jeffrey C. Hampton, Esq., and Adam H. Isenberg, at Saul Ewing LLP,
in Philadelphia, assist the Hospital in its restructuring effort.
Donlin, Recano & Company, Inc., is the Hospital's claims and
notice agent.  The Debtors tapped Zelenkofske Axelrod LLC for tax
preparation services.  The Hospital estimated assets and
liabilities at $50 million to $100 million.

Regina Stango Kelbon, Esq., at Blank Rome LLP, in Philadelphia,
represents the Official Committee of Unsecured Creditors as
counsel.

The Bankruptcy Court confirmed the hospital operator's Chapter 11
plan in December 2011.  It emerged from bankruptcy in January
2012.  The Plan is centered around a settlement of the litigation
between LBH and The Bank of New York Mellon Trust Company, N.A, as
bond trustee, regarding several issues, including whether the Bond
Trustee, on behalf of the holders of bonds, holds a secured claim
against LBH, as opposed to a claim that is secured.  General
unsecured creditors were to realize 18.5% recovery; bondholders
were to get 35% recovery.


LUCID INC: Marcum LLP Succeeds Deloitte & Touche as Accountants
---------------------------------------------------------------
Lucid, Inc., as approved by the Audit Committee of its Board of
Directors, dismissed Deloitte & Touche LLP as the Company's
independent registered accounting firm.  On Aug. 2, 2012, the
Company engaged Marcum LLP as its new independent registered
accounting firm.  D&T has served as the Company's independent
registered accounting firm since 2008.

D&T's audit report on the consolidated financial statements of the
Company for the years ended Dec. 31, 2011, and 2010 expressed an
unqualified opinion and included an explanatory paragraph relating
to substantial doubt regarding the Company's ability to continue
as a going concern.  During the years ended Dec. 31, 2011, and
2010, and the subsequent interim period through July 30, 2012,
there were no disagreements with D&T on any matter of accounting
principles or practices, financial statement disclosures, or
auditing scope or procedures, which disagreement, if not resolved
to the satisfaction of D&T, would have caused D&T to make
reference to the subject matter of disagreements in connection
with its reports.

During the years ended Dec. 31, 2011 and 2010, and the subsequent
interim period through Aug. 2, 2012, neither the Company, nor
anyone on its behalf, consulted Marcum regarding either (i) the
application of accounting principles to a specified transaction,
either completed or proposed; or the type of audit opinion that
might be rendered on the Company's financial statements, and no
written report or oral advice was provided to the Company that
Marcum concluded was an important factor considered by the Company
in reaching a decision as to an accounting, auditing, or financial
reporting issue; or (ii) any matter that was either the subject of
a disagreement or a reportable event.

                          About Lucid Inc.

Rochester, N.Y.-based Lucid, Inc., is a medical device company
that designs, manufactures and sells non-invasive cellular imaging
devices that assist physicians in the early detection of disease.
The Company's VivaScope(R) platform produces rapid noninvasive,
high-resolution cellular images for subsequent diagnostic review
by physicians, pathologists and other diagnostic readers.

The Company's balance sheet at March 31, 2012, showed
$2.82 million in total assets, $5.91 million in total liabilities,
and a stockholders' deficit of $3.09 million.

As reported in the TCR on April 9, 2012, Deloitte & Touche LLP, in
Rochester, New York, expressed substantial doubt about Lucid'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 of the Company's recurring losses from
operations, deficit in equity, and projected need to raise
additional capital to fund operations.


MACROSOLVE INC: Sells Illume Mobile to DecisionPoint Systems
------------------------------------------------------------
MacroSolve, Inc., has sold the assets of its Illume Mobile
business unit, which develops and delivers mobile applications, to
DecisionPoint Systems, Inc., a leading provider of enterprise
mobility and RFID solutions, effective July 31, 2012.

MacroSolve sold the Illume Mobile assets to DecisionPoint for
$250,000 in cash and approximately $750,000 of DecisionPoint
stock, and an agreement by DecisionPoint to pay ongoing patent
royalties on current and future sales of apps based upon
MacroSolve's patent No. 7,822,816.  In addition, MacroSolve may
earn up to an additional $500,000 in cash upon certain net revenue
milestones being reached by DecisionPoint relating to the Illume
Mobile assets.

As a result of this sale, MacroSolve will own approximately 8% of
DecisionPoint common stock on the date of closing.  DecisionPoint
has expressed that it will continue to operate the Illume Mobile
assets and retain the majority of its employees in Tulsa, Oklahoma
where MacroSolve is headquartered.

The combination of the Illume Moble app development and sales
skill sets with the large existing base of DecisionPoint customers
and DecisionPoint's ability to reach into the Fortune 1000
enterprise customer base creates a strong synergistic opportunity
for future value for both companies.

"The sale of Illume Mobile enabled MacroSolve to spin off cash
flow dilutive operations while maintaining the Company's focus on
patent enforcement and licensing, both of which have proven to
generate high margin revenues for MacroSolve," stated MacroSolve
CFO, Kendall Carpenter.  "We believe owning a nearly 8 percent
stake in DecisionPoint is an asset that has growth potential.
Through this sale, we are bringing to Tulsa a world-class employer
in DecisionPoint, which will use Tulsa as one of its main
operating centers."

Jim McGill, executive vice chairman of MacroSolve commented,
"MacroSolve's shareholders will benefit from increasing value of
DecisionPoint stock as well as ongoing monetization of
MacroSolve's intellectual property. DecisionPoint has the
resources to execute larger enterprise level contracts for mobile
apps based upon our technology.  This positions us to continue to
benefit from this transaction long term.  We will also look for
additional partners with which to further monetize our
intellectual property.  By focusing on intellectual property and
patent enforcement, we enhance MacroSolve's capacity for building
shareholder value with a business model that offers low
operational expenses with strong cash flows and higher operating
margins.  Our patent is truly foundational to the mobile apps
marketplace and we believe we will continue to unlock its value."

As of March 31, 2012, MacroSolve had nineteen legal proceedings
open against 34 alleged infringers of its patent No. 7,822,816.
The Company has already settled with prejudice pursuant to a
settlement agreement with 21 companies it had previously filed
against.

A copy of the Asset Purchase Agreement is available at:

                        http://is.gd/UIJrpl

                       Top Executives Resign

On Aug. 1, 2012, Steve Signoff resigned for personal reasons,
effective immediately, as President and Chief Executive Officer of
the Company.  In submitting his resignation, Mr. Signoff did not
express any disagreement with the Company on any matter relating
to the Company's operations, policies or practices. Mr. Signoff
remains as a director of the Company.

On Aug. 1, 2012, Randy Ritter resigned for personal reasons,
effective immediately, as Chief Operating Officer of the Company.
In submitting his resignation, Mr. Ritter did not express any
disagreement with the Company on any matter relating to the
Company's operations, policies or practices.

                       About MacroSolve, Inc.

Tulsa, Okla.-based MacroSolve, Inc. (OTC BB: MCVE)
-- http://www.macrosolve.com/-- is a technology and services
company that develops mobile solutions for businesses and
government.  A mobile solution is typically the combination of
mobile handheld devices, wireless connectivity, and software that
streamlines business operations resulting in improved efficiencies
and cost savings.

The Company reported a net loss of $2.53 million in 2011, compared
with a net loss of $1.92 million during the prior year.

The Company's balance sheet at March 31, 2012, showed $2.58
million in total assets, $3.18 million in total liabilities and a
$598,195 total stockholders' deficit.

In its report on the Company's 2011 financial results, Hood Sutton
Robinson & Freeman CPAs, P.C., in Tulsa, Oklahoma, expressed
substantial doubt about the Company's ability to continue as a
going concern.  The independent auditors noted that the Company
has suffered recurring losses from operations and has a net
capital deficiency.


MBS MGT: Forward Contract Given Broad Meaning for Safe Harbor
-------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist at Bloomberg News, reports
that Chief Judge Edith H. Jones ruled on Aug. 2 for the U.S. Court
of Appeals in New Orleans that a contract for supplying
electricity to several apartment projects for two years is a
"forward contract," thus making late payments immune from attack
as a preference under the so-called safe harbor contained in
Section 546(e) of the Bankruptcy Code.

The report relates Judge Jones upheld rulings from both the
bankruptcy court and the district court.  The bankruptcy trustee
sued to recover $156,000 in late payments that otherwise qualified
as a preference.  On appeal, the trustee contended the contract
wasn't a "forward contract" because it specified neither a
particular amount of electricity nor a delivery date.  Judge Jones
rejected the argument, saying the safe harbor statute contains no
such requirements for status as a forward contract.

The case is Lightfoot v. MX Energy Electricity Inc. (In re MBS
Management Services Inc.), 11-30553, U.S. 5th Circuit Court of
Appeals.

                       About MBS Management

Metairie, Louisiana-based MBS Management Services Inc. and its
affiliates broker and manage multifamily properties.  MBS
Management provides the real estate debtors with leasing,
maintenance coordination, on-site and regional management.
In most instances, MBS Management has engaged Gray Star or Lincoln
Property Company to handle the property management for the Real
Estate Debtors.

MBS Management and its affiliates filed for chapter 11 bankruptcy
on Nov. 5, 2007 (Bankr. E.D. La. Lead Case No. 07-12151).  Tristan
E. Manthey, Esq., Jan Marie Hayden, Esq., and Douglas S. Draper,
Esq. at Heller, Draper, Hayden, Patrick & Horn and Patrick S.
Garrity, Esq., and William E. Steffes, Esq., at Steffes Vingiello
& McKenzie LLC, represent the Debtors in their restructuring
efforts.  The Debtors disclosed to the Court $12,299,366 in total
assets and $9,461,174 in total debts.

MBS-South Point Apartments, an affiliate of the Debtor that owns a
128-unit apartment in Desoto, Texas, filed for Chapter 11
protection on Nov. 19, 2007 (Bankr. E.D. La. Case No. 07-12283).
MBS-The Trails Ltd. and MBS-Fox Chase Ltd., affiliates of the
Debtor, filed separate chapter 11 petition on Dec. 4, 2007 (Bankr.
N.D. Tex. Case Nos. 07-45430 and 07-45431, respectively).  These
affiliates estimated assets and debts between $1 million and
$10 million when they filed for bankruptcy.

Following confirmation of the Chapter 11 Plan, MBS transferred all
rights to avoid preferential or fraudulent conveyances to a
litigation trust for prosecution.  Claude Lightfoot was named
Trustee of the MBS Unsecured Creditors' Trust.


MCCLATCHY CO: Files Form 10-Q, Reports $26.9MM Net Income in Q2
---------------------------------------------------------------
The McClatchy Company filed with the U.S. Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing net income
of $26.86 million on $299.29 million of net revenues for the three
months ended June 24, 2012, compared with net income of $4.94
million on $314.25 million of net revenues for the three months
ended June 26, 2011.

The Company reported net income of $24.77 million on $587.59
million of net revenues for the six months ended June 24, 2012,
compared with net income of $2.98 million on $617.98 million of
net revenues for the six months ended June 26, 2011.

The Company's balance sheet at June 24, 2012, showed $2.92 billion
in total assets, $2.72 billion in total liabilities and $202.40
million in stockholders' equity.

A copy of the Form 10-Q is available for free at:

                        http://is.gd/72hHqD

                    About The McClatchy Company

Sacramento, Calif.-based The McClatchy Company  (NYSE: MNI)
-- http://www.mcclatchy.com/-- is the third largest newspaper
company in the United States, publishing 30 daily newspapers, 43
non-dailies, and direct marketing and direct mail operations.
McClatchy also operates leading local websites in each of its
markets which extend its audience reach.  The websites offer users
comprehensive news and information, advertising, e-commerce and
other services.  Together with its newspapers and direct marketing
products, these interactive operations make McClatchy the leading
local media company in each of its premium high growth markets.
McClatchy-owned newspapers include The Miami Herald, The
Sacramento Bee, the Fort Worth Star-Telegram, The Kansas City
Star, The Charlotte Observer, and The News & Observer (Raleigh).

                           *     *     *

McClatchy carries a 'Caa1' corporate family rating from Moody's
Investors Service.  In May 2011, Moody's changed the rating
outlook from stable to positive following the company's
announcement that it closed on the sale of land in Miami for
$236 million.  The outlook change reflects Moody's expectation
that McClatchy will utilize the net proceeds to reduce debt,
including its underfunded pension position, which will reduce
leverage by approximately half a turn and lower required
contributions to the pension plan over the next few years.


MEDICAL CONNECTIONS: Signs Purchase Agreement with Trustaff
-----------------------------------------------------------
Medical Connections Holdings, Inc., and its wholly owned
subsidiary, Medical Connections, Inc., executed an Asset Purchase
and Sale Agreement with Trustaff Medical Connections, LLC, an Ohio
limited liability company, whereby Trustaff agreed to purchase
substantially all of the assets of MCI, the Company's sole
operating subsidiary.

The purchase price for the assets was $825,000 plus 90% of MCI's
outstanding accounts receivable balance which at the date of
closing totaled $854,928.  The purchase price for the assets,
which included an additional $7,525 in prepaids, totaled
$1,687,453.  At Closing, the Purchase Price was delivered to Cors
& Basset, LLC.  The Escrow Agent was obligated to deduct from the
Purchase Price all outstanding Medical Connections liabilities and
pay those liabilities on behalf of Medical Connections.  These
liabilities included:

    (a) Payment of approximately $449,027 to Paragon Financial
        Group, Inc., representing payment in full of MCI's
        outstanding line of credit with Paragon Financial Group.

    (b) Payment of approximately $242,406 related to accounts
        payable, professional fees and related expenses.

Additionally, the Company had existing expenses related to
accounts payable, notes payable, accrued and other related
expenses totaling $644,250 that were paid in full with proceeds.
As a result, the net proceeds received from the sale of the assets
were approximately $351,770, of which $120,000 will be held in
escrow pursuant to the terms of an Escrow Agreement dated as of
July 31, 2012, by and between Trustaff, MCI, the Company and the
Escrow Agent.  The Escrow Agreement will terminate Jan. 31, 2013,
if the amount of funds remaining in escrow is less than the
remaining claims against the MCI and the Company.  The Agreement
and the transactions contemplated thereby were approved by the
Company's Board of Directors and majority shareholders owning
73.83% of the Company's total voting power effective as of
July 26, 2012.

Also in connection with the sale of the Assets, Trustaff entered
into an assignment of lease with its Landlord, BRE/BOCA Corporate
Center LLC.  It is anticipated that Trustaff and BRE will enter
into a new leasehold agreement.  However, until the parties enter
into a new lease, if Trustaff defaults on the leasehold
obligation, MCI will be liable for any default.

In addition, the Company's current officers, Anthony Nicolosi,
Brian Neill and Jeffrey Rosenfeld executed Non-Competition
Agreements which prevents each of them from engaging directly or
indirectly in any business competitive with the business being
conducted by MCI anywhere in the United States, whether as an
owner, director, officer, member, shareholder, employee, agent or
consultant for a period of up to five years after the Closing
Date.

With the sale of the assets of MCI, the Company will have no
operations.  The Company's officers, Anthony Nicolosi and Brian
Neill intend to use the net proceeds to explore other business
opportunities.  Their investigation will not be limited to any
specific business or industry.  The Company may also seek to
acquire a foreign or domestic private company which seeks to take
advantage of a reporting company with a class of securities
registered under the Securities Exchange Act of 1934.

With the execution of the Agreement, Jeffrey Rosenfeld tendered
his resignation as the Company's chief executive officer and
director and entered into a separation and release agreement with
the Company.  There was no disagreement with the Company's other
officers or directors in connection with the Company?s operations
or the execution of the Agreement.

Concurrent with the delivery of his resignation, Mr. Rosenfeld
agreed to tender all Series C preferred shares owned by Mr.
Rosenfeld to the Company for cancellation as well as one million
outstanding common stock options representing all common stock
options owned by Rosenfeld.

A copy of the Asset Purchase Agreement is available at:

                        http://is.gd/Suj7a3

                     About Medical Connections

Boca Raton, Fla.-based Medical Connections Holdings, Inc., is a
healthcare staffing company which provides staffing services for
allied professionals and nurses to the Company's clients on a
national basis.

In its audit report for the 2011 financial statements, De Meo,
Young, McGrath, in Boca Raton, Florida, noted that the Company's
dependence on outside financing, lack of sufficient working
capital, and recurring losses from consolidated operations raise
substantial doubt about the Company's ability to continue as a
going concern.

The Company reported a net loss of $3.71 million on $6.65 million
of revenue in 2011, compared with a net loss of $7.78 million on
$7.80 million of revenue in 2010.

The Company's balance sheet at March 31, 2012, showed
$1.81 million in total assets, $929,532 in total liabilities and
$887,834 in total stockholders' equity.


METROPLEX LUCKY: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Metroplex Lucky Star, LLC
        1301 Coit Road
        Plano, TX 75075

Bankruptcy Case No.: 12-42149

Chapter 11 Petition Date: August 6, 2012

Court: United States Bankruptcy Court
       Eastern District of Texas (Sherman)

Debtor's Counsel: Joyce W. Lindauer, Esq.
                  8140 Walnut Hill Lane
                  Suite 301
                  Dallas, TX 75231
                  Tel: (972) 503-4033
                  Fax: (972) 503-4034
                  E-mail: courts@joycelindauer.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $1,000,001 to $10,000,000

The Debtor did not file a list of its largest unsecured creditors
together with its petition.

The petition was signed by Mulaw W. Alemayehu, manager.


MF GLOBAL: ConocoPhillips Fights $205MM Clawback Bid
----------------------------------------------------
Sindhu Sundar at Bankruptcy Law360 reports that ConocoPhillips Co.
on Friday argued that its dispute with MF Global Inc.?s bankruptcy
trustee over his treatment of $205 million in letters of credit
the company had secured for the now-collapsed brokerage should be
moved to federal court because it involves an unusual
interpretation of a federal agency rule.

                          About MF Global

New York-based MF Global (NYSE: MF) -- http://www.mfglobal.com/--
was one of the world's leading brokers of commodities and listed
derivatives.  MF Global provided access to more than 70 exchanges
around the world.  The firm was also one of 22 primary dealers
authorized to trade U.S. government securities with the Federal
Reserve Bank of New York.  MF Global's roots go back nearly 230
years to a sugar brokerage on the banks of the Thames River in
London.

MF Global Holdings Ltd. and MF Global Finance USA Inc. filed
voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15059
and 11-5058) on Oct. 31, 2011, after a planned sale to Interactive
Brokers Group collapsed.

As of Sept. 30, 2011, MF Global had $41,046,594,000 in total
assets and $39,683,915,000 in total liabilities.

Judge Honorable Martin Glenn presides over the Chapter 11 case.
J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric
Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve
as bankruptcy counsel.  The Garden City Group, Inc., serves as
claims and noticing agent.  The petition was signed by Bradley I.
Abelow, Executive Vice President and Chief Executive Officer of MF
Global Finance USA Inc.

Louis J. Freeh was named the Chapter 11 Trustee for the
bankruptcy cases of MF Global Holdings Ltd. and its affiliates.
The Chapter 11 Trustee tapped (i) Freeh Sporkin & Sullivan LLP,
as investigative counsel; (ii) FTI Consulting Inc., as
restructuring advisors; (iii) Morrison & Foerster LLP, as
bankruptcy counsel; and (iv) Pepper Hamilton as special counsel.

An Official Committee of Unsecured Creditors has been appointed in
the case.  The Committee has retained Capstone Advisory Group LLC
as financial advisor.

The Securities Investor Protection Corporation commenced
liquidation proceedings against MF Global Inc. to protect
customers.  James W. Giddens was appointed as trustee pursuant to
the Securities Investor Protection Act.  He is a partner at Hughes
Hubbard & Reed LLP in New York.

Jon Corzine, the former New Jersey governor and co-CEO of
Goldman Sachs Group Inc., stepped down as chairman and chief
executive officer of MF Global just days after the bankruptcy
filing.


MF GLOBAL: Judicial Watch Sues SEC, CFTC Over MF Collapse
---------------------------------------------------------
Judicial Watch, the public interest group that investigates and
fights government corruption, disclosed that on July 18, 2012, it
filed a Freedom of Information Act (FOIA) lawsuit (vern mckinley
v. commodity futures trading commission and securities and
exchange commission (no. 1:12-cv-01176) against the Securities and
Exchange Commission and the Commodity Futures Trading Commission
seeking records related to internal discussions involving the
bankrupt company MF Global Holdings Ltd.  Judicial Watch's FOIA
lawsuit, filed on behalf of Vern McKinley, focuses specifically on
an Oct. 31, 2011, meeting of the Treasury Department's Financial
Stability Oversight Council, during which MF Global was reportedly
discussed.  McKinley is a former employee of the Board of
Governors of the Federal Reserve and the Federal Deposit Insurance
Corporation and author of Financing Failure: A Century of
Bailouts.

Judicial Watch seeks the following records from both the SEC and
the CFTC pursuant to the original April 24, 2012, FOIA requests
copies of any and all records concerning this update of MF Global,
the discussion of the implications for the broader financial
system, and any follow up contact and discussions on public
statements.  Such records include, but are not limited to,
detailed meeting minutes, meeting notes, supporting memoranda,
communications, and electronic messages and attachments.

The CFTC acknowledged receiving the FOIA request on April 25,
2012, and was required to issue a final response by May 23, 2012.

To date, the CFTC has failed to respond to the request in
accordance with FOIA law.

The SEC acknowledged receiving the FOIA request on April 25, 2012,
and was required to issue a final response by May 23, 2012.  To
date, the SEC has failed to respond to the request in accordance
with FOIA law. (The SEC indicated in an interim response on May
18, 2012, that it had uncovered a two-page document responsive to
Judicial Watch's request, but withheld the document in full.)

The FSOC was established under the Dodd-Frank Wall Street Reform
and Consumer Protection Act. The Council is charged with
"identifying threats to the financial stability of the United
States; promoting market discipline; and responding to emerging
risks to the stability of the United States financial system."

Per Reuter's, on Oct. 31, 2011, the FSOC held a conference call to
discuss MF Global Holdings Ltd. the same day the company filed for
bankruptcy: "The Financial Stability Oversight Council, which is
headed by the Treasury Department, received 'a series of oral
reports' from the Securities and Exchange Commission, the
Commodity Futures Trading Commission and the Federal Reserve, the
official said.  No other details of the call were provided."

Judicial Watch and Mr. McKinley have been sharply critical of the
FSOC for failing to anticipate the MF Global meltdown in
accordance with its congressional mandate.

MF Global was forced to file bankruptcy after what has been
described as "one of the most egregious violations of trust on
Wall Street." The company allegedly stole $1.6 billion from
customer accounts in an attempt to cover the company's losses and
lied to bondholders about the financial condition of the company.
Former U.S. Senator and New Jersey Governor John Corzine was
forced to resign as CEO for MF Global for his alleged role in the
improprieties at the company.

"The FSOC is yet another expensive bureaucratic boondoggle that
has failed to provide the financial stability and oversight
promised by its congressional mandate.  The American people
deserve to know the truth about what FSOC officials knew about the
epic failure of MF Global and when they knew it.  But once again,
the Obama administration refuses to provide basic information
related to its 'oversight' of the private sector," stated Judicial
Watch President Tom Fitton.

Judicial Watch has launched a comprehensive investigation to
determine under what legal authorities and lawful rationales the
federal government initiated the Wall Street bailouts and has
filed a number of lawsuits on behalf of Mr. McKinley.  More
information is available in Judicial Watch President Tom Fitton's
new national and New York Times bestselling book, "The Corruption
Chronicles."

                         About MF Global

New York-based MF Global (NYSE: MF) -- http://www.mfglobal.com/--
was one of the world's leading brokers of commodities and listed
derivatives.  MF Global provided access to more than 70 exchanges
around the world.  The firm was also one of 22 primary dealers
authorized to trade U.S. government securities with the Federal
Reserve Bank of New York.  MF Global's roots go back nearly 230
years to a sugar brokerage on the banks of the Thames River in
London.

MF Global Holdings Ltd. and MF Global Finance USA Inc. filed
voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15059
and 11-5058) on Oct. 31, 2011, after a planned sale to Interactive
Brokers Group collapsed.

As of Sept. 30, 2011, MF Global had $41,046,594,000 in total
assets and $39,683,915,000 in total liabilities.

Judge Honorable Martin Glenn presides over the Chapter 11 case.
J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric
Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve
as bankruptcy counsel.  The Garden City Group, Inc., serves as
claims and noticing agent.  The petition was signed by Bradley I.
Abelow, Executive Vice President and Chief Executive Officer of MF
Global Finance USA Inc.

Louis J. Freeh was named the Chapter 11 Trustee for the
bankruptcy cases of MF Global Holdings Ltd. and its affiliates.
The Chapter 11 Trustee tapped (i) Freeh Sporkin & Sullivan LLP,
as investigative counsel; (ii) FTI Consulting Inc., as
restructuring advisors; (iii) Morrison & Foerster LLP, as
bankruptcy counsel; and (iv) Pepper Hamilton as special counsel.

An Official Committee of Unsecured Creditors has been appointed in
the case.  The Committee has retained Capstone Advisory Group LLC
as financial advisor.

The Securities Investor Protection Corporation commenced
liquidation proceedings against MF Global Inc. to protect
customers.  James W. Giddens was appointed as trustee pursuant to
the Securities Investor Protection Act.  He is a partner at Hughes
Hubbard & Reed LLP in New York.

Jon Corzine, the former New Jersey governor and co-CEO of
Goldman Sachs Group Inc., stepped down as chairman and chief
executive officer of MF Global just days after the bankruptcy
filing.


MMRGLOBAL INC: Reports Unregistered Sales of Equity Securities
--------------------------------------------------------------
As part of an amendment and renewal of five different convertible
notes with principal amounts of $150,000, $150,000, $150,000,
$156,436, and $157,422, that were outstanding and had or were
about to mature by the end of July, MMRGlobal, Inc., granted two
different related parties five different warrants to purchase a
total of 2,269,308 shares of the Company's common stock at a price
of $0.02 per share and amended the terms of the convertible notes
to extend the maturity date, recalculate the conversion prices
based on the current market prices to a price of $0.0166 per
share, and a set the trigger price for automatic conversion to
$0.08.  The warrants vest immediately and expire five years from
the date of issuance.  The amended convertible notes mature in six
months.

On July 30, 2012, as part of an amendment to the Line of Credit
Agreement with The RHL Group to increase the credit line from
$3,000,000 to $4,500,000 under the Seventh Amended and Restated
Secured Promissory Note the Board of Directors approved granting
The RHL Group the right to convert, at any time following the date
of the Amended Note, up to an aggregate of $500,000 in outstanding
principal of the Credit Facility into shares of the Company's
Common Stock at a conversion price of $0.02 per share.

On July 30, 2012, in consideration for guarantees the Company
issued a warrant to the RHL Group to purchase 3,055,432 shares of
the Company's common stock at an exercise price of $0.02 per
share.  The warrant was fully vested as of July 31, 2012, and
expires on July 31, 2017.

On July 30, 2012, the Company granted 2,180,000 shares of common
stock at $0.02 per share to two different related-parties as an
incentive and consideration for promissory notes totaling
$250,771.

On July 19, 2012, the Company granted a vendor 1,850,000 shares of
the Company's common stock at a price of $0.02 per share for past
and future services rendered.

On July 1, 2012, the Company granted a vendor 187,500 shares of
its common stock at a price of $0.08 per share for services
rendered as a reduction to accounts payable.

On June 27, 2012, and July 10, 2012, the Company entered into two
different Convertible Promissory Notes with two different
unrelated third-parties for principal amounts totaling $50,000.
The Notes bear interest at a rate of 6% per annum payable in cash
or shares of common stock or a combination of cash and shares of
common stock.  The decision whether to pay the interest in cash,
shares of common stock or combination of both will be at the
Company's sole discretion.  At any time from and after the
earliest to occur of (i) the approval of the stockholder's of the
Company of the increase in the authorized shares of the Company's
common stock from 650,000,000 to 950,000,000, which has already
occured; or (ii) the availability of sufficient unreserved shares,
the Company will be entitled to convert any portion of the
outstanding and unpaid conversion amount into fully paid and non-
assessable shares of common stock.  If the Company were to elect
to convert those Notes, it will issue a total of 2,500,000 shares.

On June 27, 2012, the Company granted a vendor 1,002,997 shares of
the Company's common stock at a price of $0.02 for commissions
under an on-going commission relationship.

The Company generally used the proceeds of the sales of securities
for repayment of indebtedness, working capital and other general
corporate purposes.

                          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.


MOMENTIVE PERFORMANCE: Amends $525.6-Mil. Common Shares Offering
----------------------------------------------------------------
Momentive Performance Materials Inc. filed with the U.S.
Securities and Exchange Commission amendment no. 3 to Form S-1
covering resales by holders of the 9.0% Second-Priority Springing
Lien Notes due 2021 issued by Momentive Performance Materials Inc.
on Nov. 5, 2010.

The Notes mature on Jan. 15, 2021.  Interest on the Notes is
payable in cash at a rate of 9.0% per annum, from the issue date
or from the most recent date to which interest has been paid or
provided for, payable semiannually to holders of record at the
close of business on January 1 or July 1 immediately preceding the
interest payment date on January 15 and July 15 of each year.

At any time prior to Jan. 15, 2016, Momentive may redeem, in whole
or in part, the Notes at a price equal to 100% of the principal
amount of the Notes redeemed plus accrued and unpaid interest and
additional interest, if any, to the redemption date and a "make-
whole" premium.  Thereafter, Momentive may redeem the Notes, in
whole or in part, at the redemption prices set forth in this
prospectus.  In addition, at any time and from time to time on or
prior to Jan. 15, 2014, Momentive may redeem up to 35% of the
aggregate principal amount of Notes with the net cash proceeds
from certain equity offerings at the redemption price of 109% of
the principal amount of the Notes redeemed plus accrued and unpaid
interest and additional interest, if any, to the redemption date.

The Company has not applied, and does not intend to apply, for
listing of the Notes on any national securities exchange or
automated quotation system.

Momentive will not receive any proceeds from the resale of the
Notes.

A copy of the amended prospectus is available for free at:

                        http://is.gd/BedsCG

                    About Momentive Performance

Momentive Performance Materials, Inc., is a producer of silicones
and silicone derivatives, and is engaged in the development and
manufacture of products derived from quartz and specialty
ceramics.  As of Dec. 31, 2008, the Company had 25 production
sites located worldwide, which allows it to produce the majority
of its products locally in the Americas, Europe and Asia.
Momentive's customers include companies in industries, such as
Procter & Gamble, 3M, Goodyear, Unilever, Saint Gobain, Motorola,
L'Oreal, BASF, The Home Depot and Lowe's.

The Company had a net loss of $140 million in 2011, following a
net loss of $63 million in 2010.  Net loss in 2009 was
$42 million.

The Company's balance sheet at March 31, 2012, showed
$3.07 billion in total assets, $3.90 billion in total liabilities,
and a $832 million total deficit.

                           *     *     *

As reported by the TCR on May 14, 2012, Moody's Investors Service
lowered Momentive Performance Materials Inc.'s Corporate Family
Rating (CFR) and Probability of Default Rating (PDR) to Caa1 from
B3.  The action follows the company's weak first quarter results
and expectations for a slower than expected recovery in volumes in
2012.

In the May 25, 2012, edition of the TCR, Standard & Poor's Ratings
Services raised its rating on Momentive Performance Materials and
its subsidiaries' senior secured credit facilities to 'B+' from
'B'.

"The ratings on MPM reflect the company's 'highly leveraged'
financial profile and what we deem to be a 'fair' business risk
profile," said Standard & Poor's credit analyst Cynthia Werneth.


MORGAN'S FOODS: James Pappas Hikes Stake to 15.8%
-------------------------------------------------
In an amended Schedule 13D filing with the U.S. Securities and
Exchange Commission, James C. Pappas and his affiliates disclosed
that, as of Aug. 2, 2012, they beneficially own 462,858 shares of
common stock of Morgan's Foods, Inc., representing 15.8% of the
shares outstanding.  Mr. Pappas previously reported beneficial
ownership of 368,825 common shares or a 12.6% equity stake as of
Feb. 20, 2012.  A copy of the amended filing is available for free
at http://is.gd/FYAqs0

                       About Morgan's Foods

Cleveland, Ohio-based Morgan's Foods, Inc., which was formed in
1925, operates through wholly-owned subsidiaries KFC restaurants
under franchises from KFC Corporation, Taco Bell restaurants under
franchises from Taco Bell Corporation, Pizza Hut Express
restaurants under licenses from Pizza Hut Corporation and an A&W
restaurant under a license from A&W Restaurants, Inc.

As of May 20, 2011, the Company operates 56 KFC restaurants,
5 Taco Bell restaurants, 10 KFC/Taco Bell "2n1's" under franchises
from KFC Corporation and franchises from Taco Bell Corporation,
3 Taco Bell/Pizza Hut Express "2n1's" under franchises from Taco
Bell Corporation and licenses from Pizza Hut Corporation,
1 KFC/Pizza Hut Express "2n1" under a franchise from KFC
Corporation and a license from Pizza Hut Corporation and 1 KFC/A&W
"2n1" operated under a franchise from KFC Corporation and a
license from A&W Restaurants, Inc.

The Company reported a net loss of $1.68 million for the year
ended Feb. 26, 2012, compared with a net loss of $988,000 for the
year ended Feb. 27, 2011.

The Company's balance sheet at May 20, 2012, showed $53.51 million
in total assets, $54.51 million in total liabilities and a $1
million total shareholders' deficit.


MRW ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: MRW Enterprises, LLC
        2545 Ivy Street E
        Cumming, GA 30041

Bankruptcy Case No.: 12-22753

Chapter 11 Petition Date: August 6, 2012

Court: United States Bankruptcy Court
       Northern District of Georgia (Gainesville)

Debtor's Counsel: J. Robert Williamson, Esq.
                  SCROGGINS AND WILLIAMSON
                  1500 Candler Building
                  127 Peachtree Street, N.E.
                  Atlanta, GA 30303
                  Tel: (404) 893-3880
                  E-mail: rwilliamson@swlawfirm.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $1,000,001 to $10,000,000

A copy of the Company's list of its 20 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/ganb12-22753.pdf

The petition was signed by Jeff A. Woodman, member.


MSR RESORT: Winthrop Realty Won't Back Paulson Chapter 11 Plan
--------------------------------------------------------------
Patrick Fitzgerald at Dow Jones' Daily Bankruptcy Review reports
that Michael Ashner's Winthrop Realty Trust, which teamed with
John Paulson's hedge fund company, Paulson & Co., to take over a
group of iconic resorts a year and half ago, isn't supporting a
Paulson-backed plan to bring the luxury properties out of
bankruptcy.

                         About MSR Resort

MSR Hotels & Resorts, formerly known as CNL Hotels & Resorts Inc.,
owns a portfolio of eight luxury hotels with over 5,500 guest
rooms, including the Arizona Biltmore Resort & Spa in Phoenix, the
Ritz-Carlton in Orlando, Fla., and Hawaii's Grand Wailea Resort
Hotel & Spa in Maui.

On Jan. 28, 2011, CNL-AB LLC acquired the equity interests in the
portfolio through a foreclosure proceeding.  CNL-AB LLC is a joint
venture consisting of affiliates of Paulson & Co. Inc., a joint
venture affiliated with Winthrop Realty Trust, and affiliates of
Capital Trust, Inc.

Morgan Stanley's CNL Hotels & Resorts Inc. owned the resorts
before the Jan. 28 foreclosure.

Following the acquisition, five of the resorts with mortgage debt
scheduled to mature on Feb. 1, 2011, were sent to Chapter 11
bankruptcy by the Paulson and Winthrop joint venture affiliates.
MSR Resort Golf Course LLC and its affiliates filed for Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 11-10372) in Manhattan
on Feb. 1, 2011.  The resorts subject to the filings are Grand
Wailea Resort and Spa, Arizona Biltmore Resort and Spa, La Quinta
Resort and Club and PGA West, Doral Golf Resort and Spa, and
Claremont Resort and Spa.

James H.M. Sprayregen, P.C., Esq., Paul M. Basta, Esq., Edward O.
Sassower, Esq., and Chad J. Husnick, Esq., at Kirkland & Ellis,
LLP, serve as the Debtors' bankruptcy counsel.  Houlihan Lokey
Capital, Inc., is the Debtors' financial advisor.  Kurtzman Carson
Consultants LLC is the Debtors' claims agent.

The five resorts had $2.2 billion in assets and $1.9 billion in
debt as of Nov. 30, 2010, according to court filings.  In its
schedules, debtor MSR Resort disclosed $59,399,666 in total assets
and $1,013,213,968 in total liabilities.

The resorts have agreement with lenders allowing the companies to
remain in Chapter 11 at least until September 2012.

The Official Committee of Unsecured Creditors is represented by
Martin G. Bunin, Esq., and Craig E. Freeman, Esq., at Alston &
Bird LLP, in New York.


MUSCLEPHARM CORP: Amends 84.4 Million Common Shares Offering
------------------------------------------------------------
Musclepharm Corporation filed with the U.S. Securities and
Exchange Commission a post-effective amendment no. 1 to the Form
S-1 relating to the resale of 84,400,000 Shares of the Company's
common stock, par value $0.001 per share, by Southridge Partners
II, LP, Bleu Ridge Consultants, Inc., TSX Ventures, LLC, et al.,
including (i) 10,000,000 Put Shares that the Company will put to
Southridge pursuant to the Equity Purchase Agreement, (ii)
42,000,000 Purchase Shares, and (iii) 32,400,000 Warrant Shares.

The Equity Purchase Agreement provides that Southridge is
committed, at the Company's sole option, to purchase up to
$10,000,000 of the Company's common stock.  The Company may draw
on the facility from time to time, as and when the Company
determines appropriate in accordance with the terms and conditions
of the Equity Purchase Agreement.

The Company will not receive any proceeds from the sale of the
Shares.  However, the Company will receive proceeds from the sale
of its Put Shares under the Equity Purchase Agreement.  The
proceeds will be used for working capital or general corporate
purposes.  The Company will bear all costs associated with the
registration of the Shares under the Securities Act.

The Company's common stock is quoted on the OTCBB under the symbol
"MSLP.OB."  The Shares registered hereunder are being offered for
sale by the Selling Security Holders at prices established on the
OTCBB during the term of this offering.  On Aug. 3, 2012, the
closing bid price of the Company's common stock was $0.01 per
share.

A copy of the amended prospectus is available for free at:

                        http://is.gd/etvWD2

                         About MusclePharm

Headquartered in Denver, Colorado, MusclePharm Corporation
(OTC BB: MSLP) -- http://www.muslepharm.com/-- is a healthy life-
style company that develops and manufactures a full line of
National Science Foundation approved nutritional supplements that
are 100% free of banned substances.  MusclePharm is sold in over
120 countries and available in over 5,000 U.S. retail outlets,
including GNC and Vitamin Shoppe.  MusclePharm products are also
sold in over 100 online stores, including bodybuilding.com,
Amazon.com and Vitacost.com.

In the auditors' report accompanying the consolidated financial
statements for the year ended Dec. 31, 2011, Berman & Company,
P.A., in Boca Raton, Florida, expressed substantial doubt about
the Company's ability to continue as a going concern.  The
independent auditors noted that the Company has a net loss of
$23,280,950 and net cash used in operations of $5,801,761 for the
year ended Dec. 31, 2011; and has a working capital deficit of
$13,693,267, and a stockholders' deficit of $12,971,212 at Dec.
31, 2011.

The Company's balance sheet at March 31, 2012, showed
$7.55 million in total assets, $24.76 million in total
liabilities, and a $17.21 million total stockholders' deficit.

The Company's restated statement of operations reflects a net loss
of $23.28 million in 2011, compared with a net loss of
$19.56 million in 2010.


NAB HOLDINGS: S&P Assigns 'BB-' Corporate Credit Rating
-------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' corporate
credit rating to Troy, Mich.-based NAB Holdings LLC, the indirect
parent of the primary operating company North American Bancard
LLC. The outlook is stable.

"At the same time, we assigned our 'BB+' issue-level rating and
'1' recovery rating to the company's proposed $160 million first-
lien senior secured credit facility, consisting of a $10 million
revolver and $150 million term loan. The '1' recovery rating
indicates our expectation for very high (90%-100%) recovery in the
event of a payment default," S&P said.

"Our ratings on NAB reflect its 'weak' business risk profile due
to modest scale and market position in a highly competitive
industry, and its 'significant' financial risk profile," S&P said.

"However," said Standard & Poor's credit analyst Alfred
Bonfantini, "the company has a strong growth trajectory, supported
by good secular growth trends, consistent profitability, and
positive free cash flow."

"Our outlook on NAB is stable, supported by the company's strong
revenue growth trends, consistent profit margins, and positive
free operating cash flow even through the recent recession, and
leverage currently low for the rating. The company's modest
position in the highly competitive payments processing industry
and its lack of a track record of managing the business with
material amounts of debt in the capital structure limit a possible
upgrade over the near term," S&P said.

"We could lower the rating to 'B+' if leverage is sustained at or
above 4x as a result of additional debt-funded dividends or
acquisitions, or increased competition leading to higher merchant
attrition and pricing pressure and a drop in margins of over 500
basis points," S&P said.


NASSAU BROADCASTING: Seeks Extension to File Payment Plan
---------------------------------------------------------
Marie Beaudette at Dow Jones' DBR Small Cap reports that Nassau
Broadcasting Corp. is seeking a 60-day extension to file a
creditor-repayment plan as it awaits regulatory approval to sell
its 49 radio stations.

                     About Nassau Broadcasting

Nassau Broadcasting Partners LP is a radio-station owner and
operator.  Three secured lenders -- affiliates of Goldman Sachs
Group Inc., Fortress Investment Group LLC and P.E. Capital LLC --
filed involuntary Chapter 7 bankruptcy petitions (Bankr. D. Del.
Case No. 11-12934) on Sept. 15, 2011, against Nassau Broadcasting
Partners LP, the owner of 45 radio stations in the northeastern
U.S.  The lender group said in court papers that they are owed
$83.8 million secured by all of Nassau's property.  Involuntary
petitions were also filed against three affiliates of Nassau,
which is based in Princeton, New Jersey.  The lenders said the
stations aren't worth enough to pay them in full.

Nassau Broadcasting in October won a Delaware bankruptcy court's
blessing to convert its involuntary Chapter 7 bankruptcy --
pressed by creditors including Goldman Sachs Lending Partners LLC
-- to a proceeding on its own terms in Chapter 11.


NAVISTAR INT'L: S&P Rates New $1-Bil. Secured Loan 'B+'
-------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' issue rating
to Navistar Inc.'s proposed $1 billion secured loan, due 2017. The
issue rating is one notch above the Navistar International Corp.
(Navistar) corporate credit rating of 'B'. "The recovery rating on
this issue is '2', indicating that we expect substantial (70%-90%)
recovery in the event of default. Navistar Inc. is a core
subsidiary of Navistar, comprising its domestic and Canadian
operations. Furthermore, Navistar guarantees the new debt issue,"
S&P said.

"At the same time, we lowered our ratings on Navistar's unsecured
debt to 'CCC+' from 'B'. We revised the unsecured debt recovery
rating to '6' from '4', reflecting the additional priority claims
represented by the new secured issue and our expectation of
negligible (0%-10%) recovery in the event of payment default," S&P
said.

"The corporate credit rating on the Illinois-based truck maker
reflects, among other things, challenges in revamping its product
line, following the environmental Protection Agency's rejection of
its proprietary engine technology; slowing industry and military
demand; and Navistar's substantial debt burden, including large
underfunded postretirement obligations," S&P said.

"On the other hand, Navistar's arrangement to provide Cummins Inc.
(A/Stable/--) engines and emissions control components represents
a significant first step toward continuance of operations. The new
issue will provide more than $700 million net financing, which is
meaningful to assure liquidity during the upcoming critical
quarters," S&P said.

RATINGS LIST

Navistar International Corp.
Corporate Credit Rating          B/Negative/--

Downgraded
                                  To          From
Navistar International Corp.
Unsecured                        CCC+        B
  Recovery Rating                 6           4

New Rating

Navistar Inc.
$1 bil. secured loan due 2017    B+
  Recovery Rating                 2


NEXTWAVE WIRELESS: Has Forbearance with Notes Holders Until 2014
----------------------------------------------------------------
Nextwave Wireless Inc. and its wholly owned subsidiary NextWave
Wireless LLC, and certain subsidiary guarantors entered into a
Forbearance Agreement with:

    (i) the holders of the Company's Senior Secured Notes due
        2012;

   (ii) the holders of the Company's Senior-Subordinated Secured
        Second Lien Notes due 2013 issued under the Second Lien
        Subordinated Note Purchase Agreement, dated as of Oct. 19,
        2008, as amended; and

  (iii) the Third Lien Holders issued under the Third Lien
        Subordinated Exchange Note Exchange Agreement, dated as of
        Oct. 19, 2008, as amended.

Pursuant to the Forbearance Agreement, each Holder has agreed, and
directed The Bank of New York Mellon, as collateral agent under
each of the Note Agreements, to temporarily forbear from
exercising their respective rights and remedies in connection with
potential defaults and events of default that may occur prior to
the Forbearance Termination Date.  The occurrence of any "Event of
Default" under the Note Agreements would, in the absence of the
Forbearance Agreement, entitle the Holders to accrue additional
default interest at a rate of 2% per annum, to accelerate the
maturity of each respective series of Notes upon notice from the
Holders of at least 51% of the outstanding principal amount of
those series and to take action to foreclose on NextWave's
wireless spectrum assets, or the stock of NextWave's subsidiaries
which own such wireless spectrum.  If the Forbearance Agreement is
terminated without completion of the contemplated transactions,
the Holders reserve the right to accrue default interest
retroactively for the term of the Forbearance Agreement, and will
have the right to pursue all remedies under the Note Purchase
Agreements.

The Forbearance Agreement will terminate on the earlier of (i) the
Company's merger with AT&T Inc. (ii) 60 days after the termination
of the Merger Agreement and (iii) Jan. 31, 2014.

A copy of the Forbearance Agreement is available for free at:

                        http://is.gd/kre2q4

                      About Nextwave Wireless

NextWave Wireless Inc. (PINK: WAVE) is a holding company for
holding company for a significant wireless spectrum portfolio.
Its continuing operations are focused on the management of ikts
wireless spectrum interests.  Total domestic spectrum holdings
consist of approximately 3.9 billion MHz POPs.  Its international
spectrum included in continuing operations include 2.3 GHz
licenses in Canada with 15 million POPs covered by 30 MHz of
spectrum.
The Company disclosed total assets of $457.139 million, total
current liabilities of $1,064.058 million, deferred income tax
liabilities of $84.148 million and long-term obligations, net of
current portion of $14.854 million, and total stockholders'
deficit of $705.921 million.

In its report on the Company's annual report for year ended
Dec. 31, 2011, Ernst & Young, said, "The Company has incurred
recurring operating losses and has a working capital
deficiency, primarily comprised of the current portion of long
term obligations of $142.0 million at December 31, 2011 that is
associated with the maturity dates of its debt.  The Company
currently does not have the ability to repay this debt at
maturity. These conditions raise substantial doubt about the
Company's ability to continue as a going concern."


NGPL PIPECO: S&P Rates $700MM Senior Secured Term Loan 'B+'
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' issue-level
rating and '3' recovery rating to U.S. natural gas pipeline
company NGPL PipeCo LLC's $700 million senior secured term loan
due 2017. The '3' recovery rating indicates that lenders can
expect meaningful (50% to 70%) recovery if a payment default
occurs. NGPL used net proceeds to partly fund a tender offer for
$1.25 billion of debt maturing in December 2012.

"Our corporate credit rating on NGPL is 'B+', and the outlook is
stable," S&P said.

RATING LIST

NGPL PipeCo LLC
Corporate Credit Rating              B+/Stable/--

New Rating

NGPL PipeCo LLC
Senior Secured Term Loan Due 2017    B+
   Recovery Rating                    3


NORTEL NETWORKS: Aims to Expunge Affiliate Claims in March
----------------------------------------------------------
Bill Rochelle, the bankruptcy columnist at Bloomberg News, reports
that Nortel Networks Inc. is proposing a schedule where the
bankruptcy judge in Delaware could hold a hearing in March and
dismiss about $2.45 billion in claims filed by U.K. affiliates.

According to the report, the proposal, for presentation to the
bankruptcy court at an Aug. 22 hearing, is an upshot from a
62-page opinion in March by U.S. Bankruptcy Judge Kevin Gross who
concluded that Nortel was entitled to dismissal of 30 claims for
breach of fiduciary duty out of 85 claims filed by foreign
affiliates.

The report relates Nortel was unsuccessful at having the judge
throw out every claim filed by the company's European affiliates.
Ultimate resolution of the remaining claims will determine how $9
billion cash will be distributed.

The report notes Nortel is proposing that Judge Gross allow fact
investigations at this time only with regard to so-called
fiduciary duty-dependent claims and tracing-dependent claims.

Mr. Rochelle notes that if Judge Gross adopts Nortel's proposal,
the judge could be holding a hearing in March 2013 on a so-called
summary judgment motion where the company would argue that most of
the remaining claims can be knocked out without a trial.

According to the report, Nortel contends that the litigation
schedule advocated by the foreign affiliates wouldn't have factual
investigations ending until August 2013.  The company wants
discovery halted on other claims by the affiliates.

The report relates that in addition to sorting out the
intercompany claims, there also must be agreement or court
decisions to devise a formula dividing sale proceeds among the
Nortel companies in the U.S., Canada, and abroad.

                       About Nortel Networks

Nortel Networks Inc. and 14 affiliates filed separate Chapter 11
petitions (Bankr. D. Del. Case No. 09-10138) on Jan. 14, 2009.
Judge Kevin Gross presides over the case.  James L. Bromley, Esq.,
at Cleary Gottlieb Steen & Hamilton, LLP, in New York, serves as
general bankruptcy counsel; Derek C. Abbott, Esq., at Morris
Nichols Arsht & Tunnell LLP, in Wilmington, serves as Delaware
counsel.  The Chapter 11 Debtors' other professionals are Lazard
Freres & Co. LLC as financial advisors; and Epiq Bankruptcy
Solutions LLC as claims and notice agent.

The Office of the United States Trustee for the District of
Delaware has appointed an Official Committee of Unsecured
Creditors in respect of the Debtors, and an ad hoc group of
bondholders has been organized.

Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Feld LLP, in
New York, and Christopher M. Samis, Esq., at Richards, Layton &
Finger, P.A., in Wilmington, Delaware, represent the Official
Committee of Unsecured Creditors.

The Official Committee of Retired Employees and the Official
Committee of Long-Term Disability Participants tapped Alvarez &
Marsal Healthcare Industry Group as financial advisor.  The
Retiree Committee is represented by McCarter & English LLP as
Delaware counsel, and Togut Segal & Segal serves as the Retiree
Committee.  The Committee retained Alvarez & Marsal Healthcare
Industry Group as financial advisor, and Kurtzman Carson
Consultants LLC as its communications agent.

Certain of Nortel's European subsidiaries also made consequential
filings for creditor protection.  On May 28, 2009, at the request
of the Administrators, the Commercial Court of Versailles, France
ordered the commencement of secondary proceedings in respect of
Nortel Networks S.A.  On June 8, 2009, Nortel Networks UK Limited
filed petitions in this Court for recognition of the English
Proceedings as foreign main proceedings under chapter 15 of the
Bankruptcy Code.

Nortel has collected almost $9 billion for distribution to
creditors. Of the total, US$4.5 billion came from the sale of
Nortel's patent portfolio to Rockstar Bidco, a consortium
consisting of Apple Inc., EMC Corporation, Telefonaktiebolaget LM
Ericsson, Microsoft Corp., Research In Motion Limited, and Sony
Corporation.  The consortium defeated a $900 million stalking
horse bid by Google Inc. at an auction.  The deal closed in July
2011.

Nortel Networks has filed a proposed plan of liquidation in the
U.S. Bankruptcy Court.  The Plan generally provides for full
payment on secured claims with other distributions going in
accordance with the priorities in bankruptcy law.


NORTHERN STAR: Enters Deal With Ely Gold on Notes Acquisition
-------------------------------------------------------------
Ely Gold & Minerals Inc. had entered into two separate amending
agreements providing for completion of its initial acquisition of
outstanding Senior Secured Notes issued by Northern Star Mining
Corp. to occur ten business days following the date on which title
to the NSM assets is vested in the Note holders by Court Order.

The purpose of the amendments was to ensure that Ely Gold would
receive an interest in the NSM assets in the first instance rather
than an interest in the Notes.

The bankruptcy proceedings are taking much longer than
anticipated, and market conditions have changed in the interim.

Accordingly, Ely Gold has notified the Note holders that while it
remains interested in acquiring an interest in the NSM assets, it
will be necessary to discuss new terms at such time as the
bankruptcy proceedings are concluded and the Note holders are in a
position to deal with the NSM assets.

Ely Gold cannot state with certainty when such proceedings will be
concluded or whether the Note holders will agree to new terms
which are more favorable to Ely Gold than the previously
negotiated terms.

As reported in the Troubled Company Reporter on Feb. 1, 2011,
Deloitte & Touche Inc. was appointed trustee in the bankruptcy of
Northern Star Mining Corp.  NSM and its subsidiary, Jake Resources
Ltd., did not seek a further extension of the period in which to
file a proposal under the Bankruptcy and Insolvency Act (Canada),
which expired on January 24.  As a consequence, NSM and Jake
Resources were deemed to have filed assignments in bankruptcy, and
NSM's officers and directors have resigned.


NUANCE COMMUNICATIONS: S&P Affirms 'BB-' Corporate Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' corporate
credit rating on Burlington, Mass.-based Nuance Communications
Inc. The outlook is stable.

"At the same time, we assigned our issue-level rating of 'BB-' to
the company's newly issued $600 million senior unsecured notes due
2020 with a recovery rating of '3', indicating expectations for
meaningful (50%-70%) recovery in the event of a payment default,"
S&P said.

"We also affirmed our 'BB+' rating on the company's first-lien
credit facilities, keeping the '1' recovery rating unchanged,
reflecting our expectation for very high (90%-100%) recovery in
the event of a payment default," said Standard & Poor's credit
analyst David Tsui.

"We expect Nuance to keep increasing EBITDA through its successful
integration of acquisitions; this growth strategy will not be a
detriment to credit quality at current levels. Our ratings reflect
Nuance's highly acquisitive growth strategy and its 'significant'
financial risk profile. Partly offsetting is its leading presence
in the voice and language solutions market, a significant level of
recurring revenues, a diverse customer base, and its track record
of organic growth, and successful integrations of acquisitions as
ratings support. We view its business risk profile as 'fair,'" S&P
said.


OMEGA NAVIGATION: Files 'New Value' Chapter 11 Plan
---------------------------------------------------
Bill Rochelle, the bankruptcy columnist at Bloomberg News, reports
that Omega Navigation Petroleum tanker owner Omega Navigation
Enterprises Inc. filed a proposed reorganization plan at the end
of last week where the current owner will make a new investment
and share ownership with junior secured lenders, if they too make
new contributions.

According to the report, there will be a hearing on Sept. 4 in
U.S. Bankruptcy Court in Houston for approval of the disclosure
statement explaining the Chapter 11 plan.  Omega is tentatively
scheduling an Oct. 15 confirmation hearing for approval of the
plan.

The report relates the plan will be funded in part with a new
investment of about $2.5 million by an entity related to George
Kassiotis, the company's chief executive.  In return, his company
will receive all the new stock.  Junior secured lenders, owed some
$36.2 million, may participate in a rights offering to buy one-
third of the new stock at the same cost per share as Mr.
Kassiotis.  The $242.7 million owed to senior secured lenders will
be rolled over into new secured debt maturing in October 2017.
The lenders must also agree to provide $7.5 million in a new
working capital facility.  General unsecured creditors will
receive 10% in three installments over one year.  Unsecured
creditors must vote in favor of the plan as a class and
individually to receive the payment.  Existing stock will be
extinguished.

                      About Omega Navigation

Athens, Greece-based Omega Navigation Enterprises Inc. and
affiliates, owner and operator of tankers carrying refined
petroleum products, filed for Chapter 11 protection (Bankr. S.D.
Tex. Lead Case No. 11-35926) on July 8, 2011, in Houston, Texas in
the United States.

Omega is an international provider of marine transportation
services focusing on seaborne transportation of refined petroleum
products.  The Debtors disclosed assets of US$527.6 million and
debt totaling US$359.5 million.  Together, the Debtors wholly own
a fleet of eight high-specification product tankers, with each
vessel owned by a separate debtor entity.

Judge Karen K. Brown presides over the case.  Bracewell &
Giuliani LLP serves as counsel to the Debtors.  Jefferies &
Company, Inc., is the financial advisor and investment banker.

The Official Committee of Unsecured Creditors has tapped Winston
& Strawn as local counsel; Jager Smith as lead counsel; and First
International as financial advisor.


ONE CALL: Moody's Assigns 'B2' CFR/PDR; Outlook Stable
------------------------------------------------------
Moody's Investors Service has assigned a Corporate Family Rating
of B2 to One Call Medical Inc. in conjunction with its acquisition
of MSC Care Management. Moody's assigned a Ba3 rating to the $465
million senior secured credit facility. The proposed credit
facility, together with a new $210 million unsecured term loan
(not rated) and cash equity from Odyssey Investment Partners, GSO
Capital and management will be used to fund the acquisition and
repay One Call's existing debt. The outlook is stable.

Moody's assigned the following ratings:

Corporate Family Rating, B2

Probability of Default Rating, B2

$50 million senior secured revolver expiring 2018, Ba3 (LGD2, 28%)

$415 million senior secured term loan due 2018, Ba3 (LGD2, 28%)

The outlook is stable.

Ratings Rationale

One Call's B2 Corporate Family Rating reflects the company's
modest absolute size based on revenue, high financial leverage,
and integration risks associated with the large acquisition of MSC
and the potential for future acquisitions. The B2 also
incorporates the company's concentration of revenues with its
largest customers and the relatively low profit margins.

The B2 is supported by the company's leading positions within
niche sub segments of the worker's compensation market and modest
regulatory or reimbursement risk. Despite its concentration by top
customers, the company is well-diversified by state. Moody's views
the combination of One Call and MSC as strategically sound and
believe the combined company has strong organic growth prospects.
Further, despite high leverage Moody's expects the company to
generate positive free cash flow.

If the two companies are integrated without disruption and EBITDA
grows such that adjusted debt to EBITDA is sustained below 4.5
times and free cash flow to debt is sustained above 8%, Moody's
could upgrade the ratings. An upgrade would also require the
company to engage in a conservative acquisition strategy that does
not lead to material integration risks or increases to leverage.

Moody's could downgrade the ratings if leverage fails to decline
below 6.0 times within the first 12-24 months following the
transaction or if Moody's expects free cash flow to debt to be
negligible in relation to the company's debt. Aggressive
acquisition or shareholder dividends or merger disruption could
also lead to a downgrade.

The principal methodology used in rating One Call Medical, Inc was
the Global Business & Consumer Service Industry Rating Methodology
published in October 2010. Other methodologies used include Loss
Given Default for Speculative-Grade Non-Financial Companies in the
U.S., Canada and EMEA published in June 2009.

Based in Parsippany, NJ, One Call Medical, Inc. provides cost
containment services related to workers' compensation claims,
acting as an intermediary between healthcare providers, payors and
patients. One Call reduces medical costs of workers' compensation
claims by negotiating lower rates with network-based providers,
reducing unnecessary spend through utilization management and
handling certain administrative aspects of workers' compensation
medical claims. One Call is a leader in network services within
the diagnostic imaging, transportation and translation (T&T) and
dental segments. One Call is acquiring MSC Care Management
("MSC"), based in Jacksonville, FL, which provides similar
services within the equipment & device management ("EDM"), home
health ("HH"), surgical implants, and T&T segments. Customers
include insurance companies, third-party administrators (TPAs) and
self-insured employers. One Call Medical is owned by Odyssey
Investment Partners, LLC. The combined company will have annual
revenues of approximately $680 million.


ORAGENICS INC: Randal Kirk Discloses 19.5% Equity Stake
-------------------------------------------------------
In an amended Schedule 13D filing with the U.S. Securities and
Exchange Commission, Randal J. Kirk disclosed that, as of July 31,
2012, he beneficially owns 5,249,980 shares of common stock of
Oragenics, Inc., representing 19.5% of the shares outstanding.
Intrexon Corporation beneficially owns 4,392,425 common shares
representing 16.3% equity stake.  A copy of the filing is
available for free at http://is.gd/dM1kB9

                       About Oragenics Inc.

Tampa, Fla.-based Oragenics, Inc. -- http://www.oragenics.com/--
is a biopharmaceutical company focused primarily on oral health
products and novel antibiotics.  Within oral health, Oragenics is
developing its pharmaceutical product candidate, SMaRT Replacement
Therapy, and also commercializing its oral probiotic product,
ProBiora3.  Within antibiotics, Oragenics is developing a
pharmaceutical candidate, MU1140-S and intends to use its
patented, novel organic chemistry platform to create additional
antibiotics for therapeutic use.

In its audit report for the 2011 financial statements, Mayer
Hoffman McCann P.C., in Clearwater, Florida, expressed substantial
doubt about the Company's ability to continue as a going concern.
The independent auditors noted that the Company has incurred
recurring operating losses, negative operating cash flows and has
an accumulated deficit.

The Company reported a net loss of $7.67 million in 2011, compared
with a net loss of $7.80 million in 2010.

The Company's balance sheet at March 31, 2012, showed
$1.94 million in total assets, $2.25 million in total liabilities,
and a $314,253 total shareholders' deficit.

                         Bankruptcy Warning

The Company said in its annual report for the year ended Dec. 31,
2011, that its loan agreement with the Koski Family Limited
Partnership matures in three years and select material assets of
the Company relating to or connected with its ProBiora3, SMaRT
Replacement Therapy, MU1140 and LPT3-04 technologies have been
pledged as collateral to secure the Company's borrowings under the
Loan Agreement.  This secured indebtedness could impede the
Company from raising the additional equity or debt capital the
Company needs to continue its operations even though the amount
borrowed under the Loan Agreement automatically converts into
equity upon a qualified equity financing of at least $5 million.
The Company's ability to repay the loan will depend largely upon
the Company's future operating performance and the Company cannot
assure that its business will generate sufficient cash flow or
that the Company will be able to raise the additional capital
necessary to repay the loan.  If the Company is unable to generate
sufficient cash flow or are otherwise unable to raise the funds
necessary to repay the loan when it becomes due, the KFLP could
institute foreclosure proceedings against the Company's material
intellectual property assets and the Company could be forced into
bankruptcy or liquidation.


OTOLOGICS LLC: Auction Set for Sept. 4; Sale Hearing Next Day
-------------------------------------------------------------
Otologics, L.L.C., can move forward with the planned sale of its
assets after the Bankruptcy Court approved procedures that will
govern the sale and bidding.

The Debtor and Cochlear Limited have already executed an Asset
Purchase Agreement where, subject to Court approval and potential
higher and better bids, Cochlear will purchase the sale assets for
roughly $14.0 million payable by a combination of credit bids and
cash.

Before the Petition Date, the Debtor borrowed funds on a secured
basis from Cochlear and a group of 11 noteholders.  The Debtor
owes Cochlear $10.30 million plus fees and expenses.  The Debtor
owes a total of $1.91 million to the noteholders.

Competing bids are due Aug. 30.  The auction is set for Sept. 4 at
2:30 p.m. (Central time), at the offices of the Debtor's counsel,
Thompson Coburn LLP, in St. Louis, Missouri.

A hearing to consider a sale of the Purchased Assets and the
assumption and assignment of designated contracts will be held
Sept. 5 at 1:00 p.m.

Objections to the sale are due Aug. 28.  Any party in interest
that wishes to object to the validity and priority of Cochlear's
liens and security interests in the collateral securing Cochlear's
pre-bankruptcy loan must file an objection by Aug. 27.

The Court also approved -- on an interim basis -- the payment to
Cochlear of an amount equal to $500,000 in cash as break-up fee in
the event the Debtor closes a deal with another party, leaving
open the opportunity for any party to object to the allowance of
the Break-Up Fee.  Objections to the Break-Up Fee are due Aug. 14
and will be tackled at a hearing the next day.

No objection to approval of the Bidding Procedures was made prior
to or at the Hearing by any party to the case.

                          About Otologics

Otologics, L.L.C., filed a Chapter 11 petition (Bankr. E.D. Mo.
Case No. 12-47045) in St. Louis on July 23, 2012, intending to
sell its assets to Cochlear Limited.

Otologics was founded in 1996 to acquire ceratin implantable
hearing device technology from Storz Instrument Co, and further
develop and test such technology for future commercial
marketability.  The Debtor's first product, the semi-implantable
MET (middle ear implant) has received the CE Mark and is currently
being sold in Europe.  In October 2006, the Debtor completed the
European clinical trial for its second product, the fully
implantable CARINA middle ear implant, and received the CE Mark,
authorizing European sales. In the United States, the CARINA fully
implantable device is currently in Phase II clinical trials.

The Debtor's proprietary technology is protected with roughly
40 U.S. patents, 17 pending applications, and 46 proposed
applications.  The Debtor also has roughly 11 issued patents and
18 pending patent applications in various international
jurisdictions.  The patents cover hearing implant systems,
actuators, electrical stimulation and implanted microphones.  The
Debtor owns or has exclusive, worldwide licenses to these patents
and applications, many of which cover the design and manufacture
of its products.

Cochlear is a global participant in the hearing impaired device
industry. It is publicly traded on the Australian Stock exchange
and has over 2,500 employees.

Bankruptcy Judge Charles E. Rendlen III oversees the case.
Otologics is represented in the case by Thompson Coburn LLP as
lead bankruptcy counsel, and Roberts & Olivia LLP as special
counsel.

Otologics estimated under $50 million in both assets and debts.
The petition was signed by Jose H. Bedoya, chief executive
officer.


PEAK RESORTS: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Lead Debtor: Peak Resorts, Inc.
             dba Greek PeakMountain Resort
             2000 NYS Route 392
             Cortland, NY 13045

Bankruptcy Case No.: 12-31471

Affiliates that simultaneously filed for Chapter 11:

        Debtor                        Case No.
        ------                        --------
Hope Lake Investors LLC               12-31472
V.R.P.D. II, L.P.                     12-31473
REDI, LLC                             12-31475
ARK Enterprises, Inc.                 12-31476

Chapter 11 Petition Date: August 1, 2012

Court: U.S. Bankruptcy Court
       Northern District of New York (Syracuse)

About the Debtors: Peak Resorts owns 888.5 acres of real estate,
                   including the "Greek Peak Mountain Resort", a
                   four season resort development located in
                   Virgil, New York.  The 888.5-acre property is
                   located 8 miles from Cortland, New York and has
                   the largest day trip area in Central New York
                   state.  An affiliate, REDI LLC, owns 402.7
                   acres of adjacent property.  Another affiliate,
                   Hope Lake Investors, LLC, owns the Hope Lake
                   Lodge & Cascades Indoor Water Park, a 151-room


                   hotel and resort facility in Virgil, Cortland
                   County.   The Debtors have a total of 264
                   employees.

Debtors' Counsel: Lee E. Woodard, Esq.
                  HARRIS BEACH PLLC
                  333 West Washington Street, Suite 200
                  Syracuse, NY 13202
                  Tel: (315) 423-7100
                  Fax: (315) 422-9331
                  E-mail: bkemail@harrisbeach.com

                         - and ?

                  Wendy A. Kinsella, Esq.
                  HARRIS BEACH PLLC
                  333 West Washington Street, Suite 200
                  Syracuse, NY 13202
                  Tel: (315) 423-7100
                  Fax: (315) 422-9331
                  E-mail: bkemail@harrisbeach.com

                   Scheduled Assets         Scheduled Liabilities
                   ----------------         ---------------------
Hope Lake             $27,180,635                $48,800,528
Peak Resorts          $12,991,230                $26,558,438
REDI, LLC              $1,298,401                 $3,851,808

The petitions were signed by Allen R. Kryger, president.

A. Peak Resorts' List of Its 20 Largest Unsecured Creditors:

        Entity                     Nature of Claim    Claim Amount
        ------                     ---------------    ------------
FDIC ? The Fes. Deposit Insurance  --                  $10,000,000
Corp.
1251 Avenue of the Americas
New York, NY 10020-1104

FDIC ? The Fes. Deposit Insurance  --                   $3,318,248
Corp.
1251 Avenue of the Americas
New York, NY 10020-1104

MFC Real Estate, LLC               --                   $1,800,000
7 World Trade Center
250 Greenwich Street
New York, NY 10007

Abisch Family Ltd. Partnership     --                     $350,000
19 Lisa Lane
Ithaca, NY 14850

Gray Ledge Enterprises, Inc.       --                     $343,601
3387 Southern Pine Way
Syracuse, NY 13215

Gray Ledge Enterprises             --                     $343,331
109 Harbor Street
Syracuse, NY 13204

The Rossignol Group                --                     $285,817
1413 Center Drive
Park City, UT 84098

FDIC ? The Fed. Deposit Insurance  --                     $189,444
Corp.

Rossignol Ski Company              --                     $152,729

American Express                   --                     $116,854

J&H Equipment Corp.                --                     $110,500

National Grid                      --                     $106,708

TAG Mechanical Systems, Inc.       --                     $100,574

LEC, Inc.                          --                      $82,114

Edward Joy Electric, LLC           --                      $69,286

Carpets Wholesale Inc.             --                      $42,524

Mountain Uniforms                  --                      $33,376

CDW Direct, LLC                    --                      $32,432

Friedman Electric Supply           --                      $31,763

Arcadia Village Master HOA         --                      $28,199


B. Hope Lake Investors' List of Its 20 Largest Unsecured
Creditors:

        Entity                     Nature of Claim    Claim Amount
        ------                     ---------------    ------------
Peak Resorts Inc.                  --                  $6,353,177
2000 NYS Route 392
Cortland, NY 13045

FDIC ? The Fed. Deposit Ins. Corp. --                  $4,469,349
1251 Avenue of the Americas
New York, NY 10020-1104

Manufacturers & Traders Trust      --                   $3,400,000
Company
One M&T Plaza
Buffalo, NY 14240

Metro Funding                      --                   $1,800,000
1 Kalisa Way, Suite 310
Paramus, NJ 07652

VRPD II, LP                        --                   $1,000,000
661 South Hurtsbourne Parkway
Louisville, KY 40222

Emerald Hospitality                --                     $292,805
7261 Engle Road, Suite 306
Middleburg Heights, OH 44130

FDIC ? The Fed. Deposit Ins. Corp. --                     $225,944

Corning Natural Gas Corp.          --                     $161,381

FDIC ? The Fed. Deposit Ins. Corp. --                     $140,600

Ally (formerly GMAC)               --                     $136,028

Greek Peak Resort                  --                     $135,063

American Locker                    --                      $84,246

Empire Natural Gas Corp.           --                      $84,000

New Value, Inc.                    --                      $75,000

National Grid ? 8009 Acct          --                      $70,951

Gerharz Equipment Inc.             --                      $64,033

National Grid 49007                --                      $63,138

Town of Virgil/Lodge               --                      $59,706

Verizon Credit Inc.                --                      $48,485

Shamrock Construction              --                      $47,500

C. REDI, LLC's List of Its 12 Largest Unsecured Creditors:

        Entity                     Nature of Claim    Claim Amount
        ------                     ---------------    ------------
Metro Funding Corp.                --                     $686,684
One Kalisa Way
Paramus, NJ 07652

FDIC ? The Fed. Deposit Ins. Corp. --                     $686,684
1251 Avenue of the Americas
New York, NY 10020-1104

Dr. Dominic Colarusso, Jr.         --                      $45,500
138 North Third Street
Olean, NY 14760

G. Terry Thomas                    --                      $45,500
28 Mayflower Drive
Rochester, NY 14618

Town of Virgil Tax Collector       --                      $24,007

School Tax Collector               --                      $23,785

Greek Peak Resort                  --                       $7,503

J & H Equipment Corp.              --                       $6,249

Defresne-Henry, Inc.               --                       $2,738

Tom Hatfield, CPA                  --                       $1,750

Stockwin Surveying                 --                       $1,025

Hope Lake Investors                --                           $1


PEMCO WORLD: Hearing Today on Sale to Sun Capital
-------------------------------------------------
Bill Rochelle, the bankruptcy columnist at Bloomberg News, reports
that secured lender Sun Capital Partners Inc. likely will end up
buying Pemco World Air Services Inc. because the court-approved
sale to an affiliate of VT Systems Inc. fell through.

There will be a hearing Aug. 9 in U.S. Bankruptcy Court in
Delaware for approval of the sale to Sun Capital in exchange for
pre-bankruptcy secured debt and debt financing the Chapter 11
effort.  The report relates Boca Raton, Florida-based Sun Capital
will leave behind enough cash to wind down the bankruptcy case,
with any excess being refunded to the buyer.  The bankruptcy court
approved a sale June for $41.9 million cash, after VT Systems came
out ahead of Sun Capital at auction.

The report notes that, when the original buyer couldn't complete
the acquisition by the appointed date, the contract was cancelled,
Pemco said in a statement.  Sun Capital's offer to swap debt for
ownership had been selected as the backup bid after the conclusion
of the auction.

According to the report, the Court-authorized procedures allowed
approval of a sale on the backup bid to proceed quickly.  Prior to
the auction, the official creditors' committee negotiated the
settlement with Sun Capital.  The lender guaranteed that no less
than $1 million would be available for unsecured creditors after
claims with higher priority and expenses of the Chapter 11 case
were paid.

According to the report, a Sun Capital affiliate acquired the
$31.8 million senior secured debt from Merrill Lynch Credit
Products LLC and is also the holder of a $5.6 million subordinated
secured loan.  In addition, Sun Capital is providing $6 million in
financing for the Chapter 11 effort.

The Bloomberg report disclosed Sun Capital agreed as part of the
settlement that it won't receive a distribution on account of the
subordinated secured loan.

                  About Pemco World Air Services

Headquartered in Tampa, Florida Pemco World Air Services --
http://www.pemcoair.com/-- performs large jet MRO services, and
has operations in Dothan, AL (military MRO and commercial
modification), Cincinnati/Northern Kentucky (regional aircraft
MRO), and partner operations in Asia.

Pemco filed a Chapter 11 bankruptcy petition (Bankr. D. Del. Case
No. 12-10799) on March 5, 2012.  Young Conaway Stargatt & Taylor,
LLP has been tapped as general bankruptcy counsel; Kirkland &
Ellis LLP as special counsel for tax and employee benefits issues;
AlixPartners, LLP as financial advisor; Bayshore Partners, LLC as
investment banker; and Epiq Bankruptcy Solutions LLC as notice and
claims agent.

On March 14, 2012, the U.S. Trustee appointed an official
committee of unsecured creditors.

On April 13, 2012, Sun Aviation Services LLC (Bankr. D. Del. Case
No. 12-11242) filed its own Chapter 11 bankruptcy petition.  Sun
Aviation owns 85.08% of the stock of Pemco debtor-affiliate WAS
Aviation Services Holding Corp., which in turn owns 100% of the
stock of debtor WAS Aviation Services Inc., which itself owns 100%
of the stock of Pemco World Air Services Inc.  Pemco also owes Sun
Aviation $5.6 million.  As a result, Sun Aviation is seeking
separate counsel.  However, Sun Aviation obtained an order jointly
administering its case with those of the Pemco debtors.

On June 15 the bankruptcy court approved sale of Pemco's business
for $41.9 million cash to an affiliate of VT Systems Inc. from
Alexandria, Virginia.  Boca Raton, Florida-based Sun Capital was
under contract to make the first bid at auction for the provider
of heavy maintenance and repair services for commercial jet
aircraft.


PEMCO WORLD: Former Employees Lodge WARN Suit Over Mass Layoffs
---------------------------------------------------------------
Megan Leonhardt at Bankruptcy Law360 reports that former employees
sued Pemco World Air Services Inc. in Delaware on Friday, claiming
the commercial aircraft maintenance firm unlawfully failed to give
almost 500 employees enough notice of planned mass layoffs at its
Florida facility.

Lodged as an adversary case in Pemco?s bankruptcy pending in
Delaware, Ethan Willock claimed that the company violated the
federal Worker Adjustment and Retraining Notification Act, which
required businesses to notify workers at least 60 days in advance
of potential employee layoffs, according to Bankruptcy Law360.

                 About Pemco World Air Services

Headquartered in Tampa, Florida Pemco World Air Services --
http://www.pemcoair.com/-- performs large jet MRO services, and
has operations in Dothan, AL (military MRO and commercial
modification), Cincinnati/Northern Kentucky (regional aircraft
MRO), and partner operations in Asia.

Pemco filed a Chapter 11 bankruptcy petition (Bankr. D. Del. Case
No. 12-10799) on March 5, 2012.  Young Conaway Stargatt & Taylor,
LLP has been tapped as general bankruptcy counsel; Kirkland &
Ellis LLP as special counsel for tax and employee benefits issues;
AlixPartners, LLP as financial advisor; Bayshore Partners, LLC as
investment banker; and Epiq Bankruptcy Solutions LLC as notice and
claims agent.

On March 14, 2012, the U.S. Trustee appointed an official
committee of unsecured creditors.

On April 13, 2012, Sun Aviation Services LLC (Bankr. D. Del. Case
No. 12-11242) filed its own Chapter 11 bankruptcy petition.  Sun
Aviation owns 85.08% of the stock of Pemco debtor-affiliate WAS
Aviation Services Holding Corp., which in turn owns 100% of the
stock of debtor WAS Aviation Services Inc., which itself owns 100%
of the stock of Pemco World Air Services Inc.  Pemco also owes Sun
Aviation $5.6 million.  As a result, Sun Aviation is seeking
separate counsel.  However, Sun Aviation obtained an order jointly
administering its case with those of the Pemco debtors.

On June 15, 2012, the bankruptcy court approved sale of Pemco's
business for $41.9 million cash to an affiliate of VT Systems Inc.
from Alexandria, Virginia.  Boca Raton, Florida-based Sun Capital
was under contract to make the first bid at auction for the
provider of heavy maintenance and repair services for commercial
jet aircraft.


PEREGRINE FINANCIAL: Trustee Can Subpoena Firm's Banks
------------------------------------------------------
Jacob Bunge at Dow Jones' Daily Bankruptcy Review reports that a
federal judge on Aug. 7, 2012 cleared the way for a trustee to
seek financial records from banks used by Peregrine Financial
Group Inc., as investigators sift the collapsed brokerage's
finances.

Carolina Bolado at Bankruptcy Law360 reports that JPMorgan Chase
Bank NA objected to the Peregrine Financial Group Inc. liquidating
trustee's proposed subpoenas in his search for potentially
fraudulent transfers among the bank records of the embattled
brokerage.

Peregrine trustee Ira Bodenstein asked U.S. Bankruptcy Judge Carol
A. Doyle on July 31 for permission to subpoena Peregrine financial
records from at least 10 banks, including JPMorgan, Bank of New
York Mellon Corp., Morgan Stanley & Co. Inc. and Goldman Sachs &
Co.

                     About Peregrine Financial

Peregrine Financial Group Inc. filed to liquidate under Chapter 7
of the U.S. Bankruptcy Code (Bankr. N.D. Ill. Case No. 12-27488)
on July 10, 2012, disclosing between $500 million and $1 billion
of assets, and between $100 million and $500 million of
liabilities.

Earlier that day, at the behest of the U.S. Commodity Futures
Trading Commission, a U.S. district judge appointed a receiver and
froze the firm's assets.  The firm put itself into bankruptcy
liquidation in Chicago later the same day.  The CFTC had sued
Peregrine, saying that more than $200 million of supposedly
segregated customer funds had been "misappropriated."  The CFTC
case is U.S. Commodity Futures Trading Commission v. Peregrine
Financial Group Inc., 12-cv-5383, U.S. District Court, Northern
District of Illinois (Chicago).

Peregrine's Chief Executive Russell R. Wasendorf Sr.
unsuccessfully attempted suicide outside a firm office in Cedar
Falls, Iowa, on July 9.

The bankruptcy petition was signed in his place by Russell R.
Wasendorf Jr., the firm's chief operating officer. The resolution
stated that Wasendorf Jr. was given a power of attorney on July 3
to exercise if Wasendorf Sr. became incapacitated.

Peregrine Financial Group Inc. is the regulated unit of the
brokerage PFGBest.

At a quickly-convened hearing on July 13, the bankruptcy judge
authorized the Chapter 7 trustee to operate Peregrine's business
on a "limited basis" through Sept. 13.


PINNACLE AIRLINES: Says Shareholders of Jeopardizing Restructuring
------------------------------------------------------------------
Jacqueline Palank at Dow Jones' Daily Bankruptcy Review reports
that Pinnacle accuses shareholders of jeopardizing restructuring.

Pinnacle Airlines Corp. is accusing hedge fund and shareholder
Meson Capital Partners LP of putting its reorganization at risk in
order to squeeze value out of shares that are expected to be
worthless.

                      About Pinnacle Airlines

Pinnacle Airlines Corp. (NASDAQ: PNCL) -- http://www.pncl.com/--
a $1 billion airline holding company with 7,800 employees, is the
parent company of Pinnacle Airlines, Inc.; Mesaba Aviation, Inc.;
and Colgan Air, Inc.  Flying as Delta Connection, United Express
and US Airways Express, Pinnacle Airlines Corp. operating
subsidiaries operate 199 regional jets and 80 turboprops on more
than 1,540 daily flights to 188 cities and towns in the United
States, Canada, Mexico and Belize.  Corporate offices are located
in Memphis, Tenn., and hub operations are located at 11 major U.S.
airports.

Pinnacle Airlines Inc. and its affiliates, including Colgan Air,
Mesaba Aviation Inc., Pinnacle Airlines Corp., and Pinnacle East
Coast Operations Inc. filed for Chapter 11 bankruptcy (Bankr.
S.D.N.Y. Lead Case No. 12-11343) on April 1, 2012.

Judge Robert E. Gerber presides over the case.  Lawyers at Davis
Polk & Wardwell LLP, and Akin Gump Strauss Hauer & Feld LLP serve
as the Debtors' counsel.  Barclays Capital and Seabury Group LLC
serve as the Debtors' financial advisors.  Epiq Systems -
Bankruptcy Solutions serves as the claims and noticing agent.  The
petition was signed by John Spanjers, executive vice president and
chief operating officer.

Pinnacle Airlines' balance sheet at Sept. 30, 2011, showed $1.53
billion in total assets, $1.42 billion in total liabilities and
$112.31 million in total stockholders' equity.  Debtor-affiliate
Colgan Air, Inc. disclosed $574,482,867 in assets and $479,708,060
in liabilities as of the Chapter 11 filing.

Delta Air Lines, Inc., the Debtors' major customer and post-
petition lender, is represented by David R. Seligman, Esq., at
Kirkland & Ellis LLP.

A seven-member official committee of unsecured creditors has been
appointed in the case.   The Committee selected Goodrich
Corporation as its chairperson.  The Committee tapped Morrison &
Foerster LLP as its counsel.


PINNACLE HOLDCO: S&P Gives 'B' Corp. Credit Rating; Outlook Stable
------------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' corporate
credit rating to Luxembourg-based Pinnacle Holdco S.a.r.l. The
outlook is stable.

"We also assigned a 'B+' issue-level rating with a recovery rating
of '2' to the company's $40 million senior secured revolving
credit facility and $305 million first-lien term loan. In
addition, we assigned a 'CCC+' issue-level rating with a recovery
rating of '6' to Pinnacle's $135 million second-lien term loan.
The '2' recovery rating indicates expectations for substantial
(70% to 90%) recovery of principal in the event of a payment
default by the borrower and the '6' recovery rating indicates
expectations for negligible (0% to 10%) recovery," S&P said.

"Standard & Poor's ratings on Pinnacle, parent company of the
group of companies that composed Paradigm Ltd. prior to its
acquisition by Apax Partners and JMI Equity in June 2012, reflect
the company's 'weak' business profile, characterized by its
position in a fairly narrow segment of the exploration and
production (E&P) market and its 'highly leveraged' financial
profile. Offsetting some of these issues is the critical role the
company's products play in the E&P process, a strong and rising
position in its segment, and a highly recurring revenue base," S&P
said.

"Pinnacle is a provider of software solutions for the worldwide
oil and gas E&P industry. The industry uses Pinnacle's products to
accurately and cost-effectively locate and optimally produce oil
and gas, with over 700 customers worldwide including majors,
independents, national oil companies, universities, and research
institutes. Core services include interpretation and modeling
products, seismic processing and imaging, and reservoir
characterization. The company has over 3,000 active contracts and
15,000 seats. Revenues are geographically diversified, in line
with the E&P industry. Its products target and are used by
geophysicists and others in the evaluation of E&P potential. The
company offers an integrated suite of products -- on Linux- and
most recently Windows-based platforms, representing the
culmination of 10 years and a significant amount of research and
development (R&D) spending. In addition, the company has made
acquisitions to further complement its own offerings," S&P said.

"We view the company's business profile as weak, reflecting its
significant market position in a relatively small market,
competing with several major and long-established players with
greater financial and product resources," said Standard & Poor's
credit analyst Jacob Schlanger. "However, this is partly offset by
its suite of integrated software products that spans the full E&P
cycle, an emphasis on establishing relationships with new
geoscientists and engineers, and a significant patent portfolio.
The company's relationship strategy creates a growing base of
future users and enables them to increase penetration of existing
customers."

"Our stable rating outlook reflects Ceridian's modest near-term
debt maturities, the eased leverage covenant put in , which
provides sufficient headroom over the near term, and the company's
significant base of recurring revenues. We expect revenue to
slowly grow in conjunction with the economic recovery,
introduction of new offerings, and expansion into new markets.
Liquidity is ample enough to handle near-term maturities. However,
the highly leveraged capital structure limits a possible upgrade,"
S&P said.

"Although the company has addressed the 2014 maturity wall, we
could lower our ratings as the company approaches the 2015
maturity wall and there are no plans in place to restructure or
repay the debt, or if covenant headroom drops to less than 10%,"
S&P said.


PLYMOUTH OIL: Secured Creditors Fail to Block Cash Use
------------------------------------------------------
Plymouth Oil Company, L.L.C., won bankruptcy court permission, on
an emergency basis, to use the cash collateral of its secured
creditors through a final hearing on Sept. 11.

Plymouth Oil will use the cash collateral that secures its
prepetition obligations to Ryan Lake, Steve Vande Brake, Arlon
Sandbulte, Dirk Dorn, Iowa Corn Opportunities, LLC, Iowa Prairie
Bank, Iowa Corn Processors, L.C., and FWS Industrial Projects, USA
Inc. to fund, among other things:

     (a) the maintenance and preservation of its assets;

     (b) the continued operation of its business, including
         employee expenses, current tax obligations and insurance
         expenses; and

     (c) professional fees and the United States Trustee fees.

The Debtors propose to grant the Secured Creditors adequate
protection for the use of Cash Collateral in the form of (i)
replacement liens and (ii) adequate protection claims.  The
Replacement Liens and the Adequate Protection Claims, however,
will:

     (i) be subject and subordinate to valid, properly-perfected
         liens on the Debtor's assets as of the Petition Date and
         the carve-out for fees payable to the U.S. Trustee and
         bankruptcy court clerk; and fees and expenses of
         attorneys (not to exceed $25,000), employed in the
         Debtor's case from July 23, 2012 to Sept. 11, 2012, to
         the extent allowed by the Bankruptcy Court; and

    (ii) not extend to avoidance actions under Chapter 5 of the
         Bankruptcy Code, or related proceeds as well as any
         products provided by C&N Ethanol Marketing, LLC, to the
         Debtor pursuant to the Feedstock Supply, Off-Take, and
         Merchandising Agreement between C&N and the Debtor.

The Court heard the Debtor's request to use Cash Collateral at
hearings on July 31 and Aug. 1.

The Secured Creditors tried to block the Debtor's request, saying
the Debtor has shown no ability to restructure its obligations in
a way that it can meet debt service.  The Creditors categorically
object to a "carve out" of their collateral for attorney fees or
trustee fees.  The Creditors said they most likely have little or
no equity cushion and the proposed carve-out, absent strong
evidence of an equity cushion, further diminishes their position.

The Secured Creditors said their interest in the Cash Collateral
arise from five separate blanket security agreements signed by the
Debtor -- one in favor of each of the Creditors -- and appropriate
UCC financing statements filed with the appropriate offices.

The Secured Creditors said the Debtor owes them $9.25 million in
the aggregate, including interest and other charges, instead of
the $8.3 million alleged by the Debtor in its court filings.  They
said the Debtor has paid very little to the Creditors so far this
year, and interest continues to accrue on the debt.  The Loans
matured in 2010.  For the last 2 years, Debtor has been attempting
to find replacement loans or capital with which to refinance or
pay the Creditors, but it has been unable to do so, in part at
least because the Debtor has never been able to earn a profit.

Certain of the Creditors were former board members of the Debtor.
They resigned once it became clear that they would need to
litigate against Plymouth to collect their loans.

According to the Secured Creditors, "the Debtor lost $2.5 million
in 2011 and another $1 million in the first half of this year.
The Debtor has never been unable to meet its debt service, or
anything reasonably close.  Plain and simple, the Debtor is close
to failing."

The Debtor warned in court papers the "estate will be immediately
and irreparably harmed if this Emergency Order is not entered."

The Secured Creditors also said Plymouth Oil's current assets --
from which it gets its cash collateral -- are dropping in value.
Its current assets (inventory, accounts receivable and cash)
started their long downward slide in 2011. From a high of $1.1
million in mid-2011, they dropped more than $200,000 that year.
Starting in January, they dropped another $120,000 during the
first six months of this year.

The Secured Creditors said the value of the Debtor's assets is
unknown.  The Debtor lists its property, plant and equipment at
about $16 million, but that is simply historical cost basis, less
depreciation. Because the plant is somewhat unique and has never
been profitable, its value will be difficult to determine, they
said.  Neither side has a recent appraisal. It should not be
assumed that the plant is worth more than the debt against it.
There is no meaningful evidence of an "equity cushion".

The secured creditors Arlon Sandbulte, Ryan Lake, Dirk Dorn,
Steven Vande Brake, and Iowa Corn Opportunities, LLC, are
represented by:

          T. Randall Wright, Esq.
          Brandon R. Tomjack, Esq.
          Eric J. Adams, Esq.
          BAIRD HOLM LLP
          1500 Woodmen Tower
          1700 Farnam Street
          Omaha, NE 68102-2068
          Tel: 402-344-0500
          Fax: 402-344-0588
          E-mail: rwright@bairdholm.com
                  btomjack@bairdholm.com
                  eadams@bairdholm.com

                         About Plymouth Oil

Plymouth Oil Company, LLC, filed a bare-bones Chapter 11 petition
(Bankr. N.D. Iowa Case No. 12-01403) in Sioux City on July 23,
2012.  The Debtor estimated assets and debts of $10 million to
$50 million.

Plymouth Oil -- http://www.plymouthoil.com-- has a $30 million
extraction plant located at 22058 K-42 Merrill, Iowa, directly
across from the new Plymouth Energy Ethanol Plant.

Founded by local investors, Plymouth Oil started operations in
February 2010 purchasing raw corn germ and refining this material
into de-oiled germ meal and kosher food-grade cooking oil.  The
plant has the capability of pumping out 90 tons of corn oil each
day and about 300 tons of DCGM (defatted corn germ meal) daily,
which is used for hog, poultry and dairy feed.

Bankruptcy Judge Thad J. Collins presides over the case.  Bradley
R. Kruse, Esq., at Brown Winick Graves Gross Baskerville &
Schoenebaum, P.L.C., serves as the Debtor's counsel.  The petition
was signed by David P. Hoffman, president.


PLYMOUTH OIL: Hiring BrownWinick as Bankruptcy Counsel
------------------------------------------------------
Plymouth Oil Company, L.L.C., seeks Bankruptcy Court permission to
employ Bradley R. Kruse of the law firm of Brown, Winick, Graves,
Gross, Baskerville and Schoenebaum, P.L.C. as its general
reorganization counsel.

Mr. Kruse will act as lead counsel; he will utilize other
BrownWinick attorneys and paralegals when appropriate.

Mr. Kruse attests that BrownWinick, including the attorneys
employed by it, is a disinterested person, represents or holds no
interest adverse to the interest of the estate with respect to the
matters on which it is to be employed, represents no other entity
in connection with this case, has represented no other entity in
connection with this case and has no connection with the debtor
(except that it represented the Debtor in various legal matters
pre-petition), any creditor (except that it previously represented
creditor Port Neal Welding Co. Inc. on matters wholly unrelated to
this bankruptcy case), or any other party in interest (except that
it previously represented Randall Kroese and Jon Bjornstad, who
both own a minority membership interest in Plymouth Oil Company,
LLC, and currently represents Kroese & Kroese, an accounting firm
owned in part by Randall Kroese, on matters wholly unrelated to
this bankruptcy case), or their attorneys or accountants, or the
United States trustee, or any person employed in the office of the
United States trustee.

The Debtor paid the Firm $20,000 on July 23, 2012, as a retainer
to guaranty payment of services.  The Debtor and the Firm agreed
that the Firm should be paid $12,949.75 from this retainer for
previously unbilled pre-petition legal services and reimbursement
of pre-petition expenses and costs advanced, related to Debtor's
financial difficulties, the possibilities of reorganizing and
bankruptcy options. The balance of the prepetition retainer in the
amount of $7,050.25 has been placed in the Firm's Client Trust
Account, and will be applied to postpetition attorney fees and
costs incurred, after application to and upon approval by the
Bankruptcy Court.

Plymouth Oil Company, LLC, filed a bare-bones Chapter 11 petition
(Bankr. N.D. Iowa Case No. 12-01403) in Sioux City on July 23,
2012.  The Debtor estimated assets and debts of $10 million to
$50 million.

Plymouth Oil -- http://www.plymouthoil.com-- has a $30 million
extraction plant located at 22058 K-42 Merrill, Iowa, directly
across from the new Plymouth Energy Ethanol Plant.

Founded by local investors, Plymouth Oil started operations in
February 2010 purchasing raw corn germ and refining this material
into de-oiled germ meal and kosher food-grade cooking oil.  The
plant has the capability of pumping out 90 tons of corn oil each
day and about 300 tons of DCGM (defatted corn germ meal) daily,
which is used for hog, poultry and dairy feed.

Bankruptcy Judge Thad J. Collins presides over the case.  Bradley
R. Kruse, Esq., at Brown Winick Graves Gross Baskerville &
Schoenebaum, P.L.C., serves as the Debtor's counsel.  The petition
was signed by David P. Hoffman, president.

Secured creditors Arlon Sandbulte, Ryan Lake, Dirk Dorn, Steven
Vande Brake, and Iowa Corn Opportunities, LLC, are represented by
lawyers at Baird Holm LLP in Omaha, Nebraska.


PLYMOUTH OIL: Sec. 341 Creditors' Meeting Set for Aug. 29
---------------------------------------------------------
The U.S. Trustee for the Northern District of Iowa will convene a
Meeting of Creditors under 11 U.S.C. Sec. 341(a) in the Chapter 11
case of Plymouth Oil Company, LLC, on Aug. 29, 2012, at 10:00 a.m.
at Sioux City 341 Meeting Room.

Plymouth Oil Company, LLC, filed a bare-bones Chapter 11 petition
(Bankr. N.D. Iowa Case No. 12-01403) in Sioux City on July 23,
2012.  The Debtor estimated assets and debts of $10 million to
$50 million.

Plymouth Oil -- http://www.plymouthoil.com-- has a $30 million
extraction plant located at 22058 K-42 Merrill, Iowa, directly
across from the new Plymouth Energy Ethanol Plant.

Founded by local investors, Plymouth Oil started operations in
February 2010 purchasing raw corn germ and refining this material
into de-oiled germ meal and kosher food-grade cooking oil.  The
plant has the capability of pumping out 90 tons of corn oil each
day and about 300 tons of DCGM (defatted corn germ meal) daily,
which is used for hog, poultry and dairy feed.

Bankruptcy Judge Thad J. Collins presides over the case.  Bradley
R. Kruse, Esq., at Brown Winick Graves Gross Baskerville &
Schoenebaum, P.L.C., serves as the Debtor's counsel.  The petition
was signed by David P. Hoffman, president.

Secured creditors Arlon Sandbulte, Ryan Lake, Dirk Dorn, Steven
Vande Brake, and Iowa Corn Opportunities, LLC, are represented by
lawyers at Baird Holm LLP in Omaha, Nebraska.


PROVIDENT COMMUNITY: Posts $143,000 Net Income in Second Quarter
----------------------------------------------------------------
Provident Community Bancshares, Inc., reported net income of
$143,000 on $1.81 million of net interest income for the three
months ended June 30, 2012, compared with net income of $8,000 on
$2.30 million of net interest income for the same period during
the prior year.

The Company reported net income of $59,000 on $3.76 million of net
interest income for the six months ended June 30, 2012, compared
with net income of $119,000 on $4.28 million of net interest
income for the same period a year ago.

Dwight V. Neese, President and CEO, said "During the second
quarter, our financial performance improved, but was still
affected by the continued decline in real estate values in the
markets we serve.  The increase in our loan loss provision in the
second quarter was necessary to cover valuation issues on
commercial real estate loans.  Our results reflect the positive
outcome of proactive measures that were taken earlier to address
uncertain market conditions.  As a result, our capital ratios
increased and higher underwriting standards and a profitable core
banking operation contributed to an improved quarter.  We continue
to take a very conservative approach on all aspects of managing
our loan portfolio, especially collateral valuations.  While we
realize the financial sector has more challenges ahead, we believe
the actions we have taken over the past several years in dealing
with risk management systems, loan review systems and technology
improvements have prepared us to deal with whatever issues are yet
to come.  We also believe that we have aggressively identified and
dealt with our problem loans and believe that the steps that we
have taken will enable us to better manage our loan portfolio."

A copy of the press release is available for free at:

                        http://is.gd/vZO3gd

                     About Provident Community

Rock Hill, South Carolina-based Provident Community Bancshares,
Inc., is the bank holding company for Provident Community Bank,
N.A. (the "Bank").  Provident Community Bancshares has no material
assets or liabilities other than its investment in the Bank.
Provident Community Bancshares' business activity primarily
consists of directing the activities of the Bank.

The Bank's operations are conducted through its main office in
Rock Hill, South Carolina and seven full-service banking centers,
all of which are located in the upstate area of South Carolina.
The Bank is regulated by the Office of the Comptroller of the
Currency (the "OCC"), is a member of the Federal Home Loan Bank of
Atlanta (the "FHLB") and its deposits are insured up to applicable
limits by the Federal Deposit Insurance Corporation (the "FDIC").
Provident Community Bancshares is subject to regulation by the
Federal Reserve Board (the "FRB").

The Company reported a net loss of $190,000 on net interest income
of $8.5 million for 2011, compared with a net loss of $13.8
million on net interest income of $8.4 million for 2010.  Total
non-interest income was $3.3 million for 2011, as compared to $3.5
million for 2010.

The Company's balance sheet at March 31, 2012, showed $375.39
million in total assets, $363.61 million in total liabilities and
$11.78 million in total shareholders' equity.

                           Consent Order

On Dec. 21, 2010, Provident Community Bank, N.A. entered into a
stipulation and consent to the issuance of a consent order with
the Office of the Comptroller of the Currency.

At Dec. 31, 2011, the Bank met each of the capital requirements
required by regulations, but was not in compliance with the
capital requirements imposed by the OCC in its Consent order.

The Bank is required by the consent order to maintain Tier 1
capital at least equal to 8% of adjusted total assets and total
capital of at least 12% of risk-weighted assets.  However, so long
as the Bank is subject to the enforcement action executed with the
OCC on Dec. 21, 2010, it will not be deemed to be well-capitalized
even if it maintains the minimum capital ratios to be well-
capitalized.  At Dec. 31, 2011, the Bank did not meet the higher
capital requirements required by the consent order and is
evaluating alternatives to increase capital.


PORTER BANCORP: Signs Employment Agreement with John Taylor
-----------------------------------------------------------
John T. Taylor entered into an employment agreement with Porter
Bancorp, Inc., and PBI Bank, effective Aug. 2, 2012, to serve as
President and CEO of PBI Bank and President of Porter Bancorp.
Mr. Taylor will also be appointed to the board of directors of
Porter Bancorp and PBI Bank, pending regulatory approval.

Mr. Taylor's Employment Agreement has a term of 3 years.

Mr. Taylor's initial base salary is $375,000 per year and may be
increased from time to time in those amounts as the boards of
directors of the Company and the Bank may determine, but may not
be decreased without his express written consent.  No increase in
the base salary is expected to occur during the first two years of
the agreement.

On the effective date, the Company granted a restricted stock
award to Mr. Taylor which has a grant date value equal to one-
third of his projected total compensation for 2012.

A copy of the Employment Agreement is available for free at:

                        http://is.gd/CAFpN2

                        About Porter Bancorp

Porter Bancorp, Inc., is a bank holding company headquartered in
Louisville, Kentucky.  Through its wholly-owned subsidiary PBI
Bank, the Company operates 18 full-service banking offices in
twelve counties in Kentucky.

Crowe Horwath, LLP, in Louisville, Kentucky, audited Porter
Bancorp's financial statements for 2011.  The independent auditors
said that the Company has incurred substantial losses in 2011,
largely as a result of asset impairments.  "In addition, the
Company's bank subsidiary is not in compliance with a regulatory
enforcement order issued by its primary federal regulator
requiring, among other things, increased minimum regulatory
capital ratios. Additional significant asset impairments or
continued failure to comply with the regulatory enforcement order
may result in additional adverse regulatory action."

The Company reported a net loss of $107.31 million in 2011,
compared with a net loss of $4.38 million in 2010.

The Company's balance sheet at June 30, 2012, showed $1.33 billion
in total assets, $1.25 billion in total liabilities and $81.50
million in stockholders' equity.


RAINBOW LAND: Has Court's Nod to Hire Alan R. Smith as Counsel
--------------------------------------------------------------
Rainbow Land & Cattle Company, LLC, sought and obtained
authorization from the Hon. Bruce A. Markell of the U.S.
Bankruptcy Court for the District of Nevada to employ the Law
Offices of Alan R. Smith as bankruptcy counsel.

The firm will, among other things, negotiate, prepare and file a
plan or plans of reorganization and disclosure statements in
connection with the plans, and otherwise promote the financial
rehabilitation of the Debtor at these hourly rates:

      Alan R. Smith                             $500
      John J. Gezelin, Contract Attorney        $350
      Holly E. Estes, Associate Attorney        $300
      Peggy L. Turk, Paraprofessional           $205
      Debra L. Goss, Paraprofessional           $150
      Other Paraprofessional Services           $105

The principal of the Debtor, John Houston, paid into the Debtor
the sum of $25,000 for the payment of attorneys' fees to the firm.
The funds were deposited in the business account of the Debtor,
and the Debtor subsequently wrote a check to the firm for $25,000,
which was paid pre-petition.

Alan R. Smith, Esq., a member at the Firm, attested that the Firm
is a "disinterested person" as the term is defined in Section
101(14) of the Bankruptcy Code.

                         About Rainbow Land

Rainbow Land & Cattle Company, LLC, owns 466 undeveloped acres of
real property located in Caliente, Nevada, along with 133 acre fee
of water rights.

Rainbow Land filed a Chapter 11 petition (Bankr. D. Nev. Case No.
12-14009) on April 4, 2012.  It scheduled $15.43 million in assets
and $2.50 million in liabilities.  The Debtor owns land and water
rights in Caliente with a combined value of $15.4 million.  The
properties secure $2.4 million of debt.

Judge Bruce A. Markell presides over the case.  The petition
was signed by John H. Huston, managing member.


REOSTAR ENERGY: Judge Denies Former Execs' Bid to Shake Suit
------------------------------------------------------------
Max Stendahl at Bankruptcy Law360 reports that U.S. District Judge
John McBryde on Friday refused to dismiss ReoStar Energy Corp.'s
suit alleging its former CEO and finance chief breached a contract
by selling an $11.2 million debt at a steep discount to a creditor
who then pushed the firm into bankruptcy.
Bankruptcy Law360 says Judge McBryde denied a May 29 motion by
Mark Zouvas and Scott Allen to dismiss claims for breach of
contract, breach of fiduciary duty and negligence.

                         About ReoStar Energy

Fort Worth, Texas-based ReoStar Energy Corporation is engaged in
the exploration, development and acquisition of oil and gas
properties, primarily located in the state of Texas.  The Company
owns roughly 9,000 acres of leasehold, which include 5,000 acres
of exploratory and developmental prospects as well as 4,000 acres
of enhanced oil recovery prospects.  ReoStar filed for Chapter 11
bankruptcy protection (Bankr. N.D. Tex. Case No. 10-47176) on
Nov. 1, 2010.

Bankruptcy Judge D. Michael Lynn presides over the case.  Bruce W.
Akerly, Esq., and Arthur A. Stewart, Esq., at Cantey Hanger LLP,
in Dallas, represent the Debtors in their restructuring efforts.
Greenberg Taurig, LLP, serves as special corporate/securities
counsel.  Reostar Energy disclosed $15.3 million in assets and
$16.4 million in liabilities.

ReoStar Energy's bankruptcy case is jointly administered with
ReoStar Gathering, Inc., ReoStar Leasing, Inc., and ReoStar
Operating, Inc.  ReoStar Energy is the lead case.

No trustee was appointed in the Debtors' cases.  On Jan. 10, 2011,
Michael McConnell was appointed as Chapter 11 examiner.

ReoStar filed for bankruptcy a few weeks after BT and MK Energy
and Commodities LLC, a Delaware Limited Liability Corporation
comprised of two members, BancTrust International, Inc., and MK
Oil Ventures LLC, accelerated a Union Bank note and issued a
foreclosure notice.  BTMK acquired full interest in ReoStar's $25
million line of credit from Union Bank.  Earlier in 2010, BT and
MK Capital expressed interested in investing in ReoStar and in
acquiring the line of credit for that purpose.  Roughly
$10.8 million of the Union Bank loan were then outstanding, and
Union Bank assigned the loan to BTMK for roughly $5.4 million.


RESIDENTIAL CAPITAL: Automatic Stay Is 'Shield,' Not 'Sword'
------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist at Bloomberg News, reports
that Aurora Bank FSB won't be permitted to go ahead with several
lawsuits in California state courts seeking $1.4 million in
damages from Residential Capital LLC.

According to the report, U.S. Bankruptcy Judge Martin Glenn wrote
a 13-page opinion Aug. 7 telling Rescap that he won't allow the
so-called automatic bankruptcy stay "to be used both as a sword
and a shield."

The disputes between Aurora and Rescap date to 2009 when Rescap
filed foreclosure suits and Aurora counterclaimed, contending
Rescap improperly transferred mortgages Aurora was servicing.
While Judge Glenn won't permit Aurora to proceed with the suits to
obtain money judgments, he won't allow Rescap to move ahead with
its part of the suits seeking so-called declaratory judgments.
Judge Glenn said that Aurora's claims, even if upheld, would only
give rise to general unsecured claims not covered by insurance.
Distracting Rescap's management with the lawsuits would interfere
with progress of the Chapter 11 effort, Judge Glenn said.

The report notes Judge Glenn previously allowed about two-thirds
of lawsuits against Rescap to go ahead despite the bankruptcy stay
that automatically halts lawsuits against a company when it files
a Chapter 11 petition.  The suits that may proceed include those
to resolve title disputes and defenses to foreclosures.

                     About Residential Capital

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.

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.

ResCap is selling its mortgage origination and servicing
businesses and its legacy portfolio, consisting mainly of mortgage
loans and other residual financial assets.  At the onset of the
bankruptcy case, ResCap struck a deal with Nationstar Mortgage LLC
for the mortgage origination and servicing businesses, and with
Ally Financial for the legacy portfolio.  Together, the asset
sales are expected to generate roughly $4 billion in proceeds.

According to Bloomberg News, following a hearing in June, the
bankruptcy judge scheduled auctions for Oct. 23.  A hearing to
approve the sales was set for Nov. 5.  Fortress Investment Group
LLC will make the first bid for the mortgage-servicing business,
while Berkshire Hathaway Inc. will serve as stalking-horse bidder
for the remaining portfolio of mortgages.

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: Judge Gonzalez's Probe to Cost Up to $36MM
---------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist at Bloomberg News, reports
that Arthur J. Gonzalez, who was appointed on July 3 as examiner
for Residential Capital LLC, said in a court filing that his
investigation will cost $29 million to $36 million.

According to the report, Mr. Gonzalez said it's "realistic" to
expect that his report will be filed in early February.  Mr.
Gonzalez retired as a bankruptcy judge in New York on March 1.
His investigation will cover ResCap and its parent, nonbankrupt
Ally Financial Inc.  As examiner, Mr. Gonzalez will utilize the
law firm Chadbourne & Park LLP along with Mesirow Financial
Consulting LLC as financial advisers.

The report relates U.S. Bankruptcy Judge Martin Glenn formally
called for an examiner in June and later directed Gonzalez to
investigate Ally and Cerberus Capital Management LP, ResCap's
proposed sale and reorganization plan, the role of ResCap's board,
alternatives to ResCap's proposals, claims against officers and
directors, claims ResCap proposes to release, and the value of the
releases.

The report notes Judge Glenn said in June that creditors won't be
permitted to vote on a ResCap reorganization plan until the
examiner's report is completed.

The $473.4 million of ResCap senior unsecured notes due April 2013
last traded Aug. 6 for 24 cents on the dollar, according to Trace,
the bond-price reporting system of the Financial Industry
Regulatory Authority.  The $2.1 billion in third-lien 9.625%
secured notes due 2015 last traded on Aug. 2 for 99.5 cents on the
dollar, Trace reported.

                     About Residential Capital

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.

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.

ResCap is selling its mortgage origination and servicing
businesses and its legacy portfolio, consisting mainly of mortgage
loans and other residual financial assets.  At the onset of the
bankruptcy case, ResCap struck a deal with Nationstar Mortgage LLC
for the mortgage origination and servicing businesses, and with
Ally Financial for the legacy portfolio.  Together, the asset
sales are expected to generate roughly $4 billion in proceeds.

According to Bloomberg News, following a hearing in June, the
bankruptcy judge scheduled auctions for Oct. 23.  A hearing to
approve the sales was set for Nov. 5.  Fortress Investment Group
LLC will make the first bid for the mortgage-servicing business,
while Berkshire Hathaway Inc. will serve as stalking-horse bidder
for the remaining portfolio of mortgages.

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).


RIDGE MOUNTAIN: Has OK to Hire Harris Beach as Bankruptcy Counsel
-----------------------------------------------------------------
The Hon. Margaret Cangilos-Ruiz of the U.S. Bankruptcy Court for
the Northern District of New York granted Ridge Mountain LLC
permission to employ Harris Beach PLLC as its Chapter 11 counsel.

As reported by the Troubled Company Reporter on June 13, 2012, the
attorneys likely to work on the case and their normal hourly rates
are:

          Lee W. Woodard, Esq.         $375
          David M. Capriotti, Esq.     $375
          Wendy A. Kinsella, Esq.      $375
          Kevin W. Tompsett, Esq.      $310
          Kelly C. Griffith, Esq.      $275
          Paralegals                   $125

                       About Ridge Mountain

Ridge Mountain LLC filed a Chapter 11 petition (Bankr. N.D.N.Y.
Case No. 12-31090) in Syracuse on June 4, 2012.  Ridge Mountain
operates that Mountain Brook Apartments in Chattanooga, Tennessee,
and the Ridgemont Apartments in Red Bank, Tennessee.  Ridge
Mountain disclosed $16.5 million in assets and $23.6 million in
liabilities.  The apartment secures a $22 million debt to U.S.
Bank, N.A.

Judge Margaret M. Cangilos-Ruiz presides over the case.  The
petition was signed by Patrick Phelan, president of First Salina
Prop., managing member.


RIDGE MOUNTAIN: US Bank Wants Daniel Ford to Continue as Receiver
-----------------------------------------------------------------
Lender U.S. Bank, National Association, asks the U.S. Bankruptcy
Court for the Northern District of New York to enter an order
authorizing Daniel Ford, a Senior Vice President/Director of
Property Management for Freeman Webb Incorporated, to continue
as receiver of the Ridge Mountain, LLC mortgaged property:
(a) Mountain Brook Apartments, 280 unit multi-family residential
apartment building located in Chattanooga, Tennessee; and
(b) Ridgemont Apartments, 226 unit multi-family residential
apartment building located in Red Bank, Tennessee.

The Lender is the successor in interest to Bank of America,
National Association, successor by merger to LaSalle Bank National
Association, as trustee for the registered holders of J.P. Morgan
Chase Commercial Mortgage Securities Corp., Commercial Mortgage
Pass-Through Certificates, Series 2004-CIBC9.  Prior to the
Petition Date, the Debtor executed that certain Promissory Note A,
dated May 1, 2004, payable to CIBC, Inc., in the original
principal amount of $16.925 million and that certain Promissory
Note B, dated May 7, 2004, payable to CIBC, in the original
principal amount of $1.075 million.  The Notes are secured by a
Deed of Trust, Assignment of Leases and Rents and Security
Agreement, dated May 7, 2004, executed by the Debtor in favor of
First American Title Insurance Company, as Trustee, for the
benefit of the original lender, evidencing a lien on the Mortgaged
Property.

Prior to the Petition Date, the Debtor was in default under the
terms of the Notes and Deed of Trust.  The Debtor's defaults
included:

      a. failure to pay when due the entirety of incurred utility
         charges which are incurred, which in turn resulted in
         certain essential services, including water service,
         being discontinued to certain portions of the Mortgaged
         Property;

      b. failure to pay taxes which had become due, which in turn
         resulted in multiple tax liens being attached to the
         Mortgaged Property;

      c. failure to repair fire damage to a portion of the
         property at Mountain Brook Apartments, and based on its
         failure to maintain the improvements in a manner that
         they are structurally sound, in good repair and free of
         defects in materials and workmanship; and

      e. failure of the improvements to comply with and remain in
         compliance with all applicable statutes, rules,
         regulations and private covenants relating to the
         ownership, construction, use or operation of the
         property, including all applicable health, fire and
         building codes.

In September 2010, the Chancery Court for Hamilton County,
Tennessee Eleventh Judicial District, appointed, at the behest of
the Lender, Mr. Ford as the Receiver.  The State Court directed
that all rents and other proceeds from the Mortgaged Property due
on Oct. 1, 2010, were to be delivered to and held by the Receiver
pending further order of the State Court.

Subsequent to his appointment, the Receiver issued his initial
reports dated Oct. 18, 2010, and Nov. 1, 2010.  In his initial
reports, the Receiver validated the Lender's assertions as to the
deplorable, and in some cases dangerous, conditions that existed
at the Mortgaged Property due to the Debtor's gross mismanagement.
By contrast, the condition of the Mortgaged Property has
significantly improved under the Receiver's possession and
management, such that the Receiver's continued management and
control over the Mortgaged Property is in the best interests of
the creditors of this estate.

The Lender also seeks the issuance of court order, (a) excusing
the Receiver from compliance with Sections 543(a) and (b) of the
Bankruptcy Code, (b) authorizing the Receiver to continue to
collect cash, rents and other proceeds from the operation of the
Mortgaged Property, which amounts constitute the "cash collateral"
of the Lender, and to disburse the funds in the normal course to
the extent required to operate and maintain the Mortgaged
Property, and (c) granting the Lender such other and further
relief as is just and proper.

The Lender is represented by:

      Douglas K. Clarke, Esq.
      Steven E. Fox, Esq.
      Brett J. Nizzo, Esq.
      RIEMER & BRAUNSTEIN LLP
      Times Square Tower
      Seven Times Square, Suite 2506
      New York, NY 10036
      Tel: (212) 789-3100
      E-mail: dclarke@riemerlaw.com
              sfox@riemerlaw.com
              bnizzo@riemerlaw.com

                         About Ridge Mountain

Ridge Mountain LLC filed a Chapter 11 petition (Bankr. N.D.N.Y.
Case No. 12-31090) in Syracuse on June 4, 2012.  Ridge Mountain
operates that Mountain Brook Apartments in Chattanooga, Tennessee,
and the Ridgemont Apartments in Red Bank, Tennessee.  Ridge
Mountain disclosed $16.5 million in assets and $23.6 million in
liabilities.  The apartment secures a $22 million debt to U.S.
Bank, N.A.

Judge Margaret M. Cangilos-Ruiz presides over the case.  Lee E.
Woodard, Esq., at Harris Beach PLLC, serves as the Debtor's
counsel.  The petition was signed by Patrick Phelan, president of
First Salina Prop., managing member.


ROCK LAW: Case Summary & 5 Unsecured Creditors
----------------------------------------------
Debtor: The Rock Law Group, P.A.
        1760 Fennell Street
        Orlando, FL 32751

Bankruptcy Case No.: 12-10536

Chapter 11 Petition Date: August 1, 2012

Court: U.S. Bankruptcy Court
       Middle District of Florida (Orlando)

Debtor's Counsel: Christopher C. Todd, Esq.
                  MCINTYRE, PANZARELLA, THANASIDES, ET AL
                  400 N. Ashley Drive, Suite 1500
                  Tampa, FL 33602
                  Tel: (813) 899-6059
                  Fax: (813) 899-6069
                  E-mail: chris@mcintyrefirm.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $1,000,001 to $10,000,000

The Company's list of its five unsecured creditors is available
for free at http://bankrupt.com/misc/flmb12-10536.pdf

The petition was signed by Andrew P. Rock, Esq., president.


RON M. LAWRENCE: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Ron M. Lawrence, Inc.
        3164 Cushman Circle, SW
        Suite B-2
        Atlanta, GA 30311

Bankruptcy Case No.: 12-69566

Chapter 11 Petition Date: August 6, 2012

Court: United States Bankruptcy Court
       Northern District of Georgia (Atlanta)

Judge: C. Ray Mullins

Debtor's Counsel: Angelyn M. Wright, Esq.
                  THE WRIGHT LAW OFFICE, P.C.
                  160 Clairemont Avenue - Ste. 200
                  P.O. Box 2890
                  Decatur, GA 30031-2890
                  Tel: (404) 373-9933
                  E-mail: twlopc@earthlink.net

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $1,000,001 to $10,000,000

The Debtor did not file a list of its largest unsecured creditors
together with its petition.

The petition was signed by Ronald M. Lawrence, president.


ROSETTA GENOMICS: Offering 5.5 Million of Ordinary Shares
---------------------------------------------------------
Rosetta Genomics Ltd. announced the pricing of an underwritten
public offering of 5,500,000 ordinary shares at a public offering
price of $5.00 per share.  The gross proceeds to Rosetta from this
offering are expected to be approximately $27.5 million, before
deducting underwriting discounts and commissions and other
offering expenses payable by Rosetta.  The offering is expected to
close on or about Aug. 8, 2012, subject to the satisfaction of
customary closing conditions.  In addition, Rosetta has granted
the underwriter a 45-day option to purchase up to 825,000
additional ordinary shares to cover over-allotments, if any.

Rosetta plans to use the net proceeds from the offering primarily
to fund its operations and for other general corporate purposes,
including, but not limited to, repayment or refinancing of future
indebtedness or other corporate borrowings, working capital,
intellectual property protection and enforcement, capital
expenditures, investments, acquisitions or collaborations,
research and development and product development.

Aegis Capital Corp. is acting as the sole book-running manager for
the offering.

A registration statement on Form F-1 relating to the shares was
filed with the Securities and Exchange Commission and was declared
effective on Aug. 2, 2012.

A copy of the Underwriting Agreement is available for free at:

                        http://is.gd/CBIgBh

                           About Rosetta

Located in Rehovot, Israel, Rosetta Genomics Ltd. is seeking to
develop and commercialize new diagnostic tests based on a recently
discovered group of genes known as microRNAs.  MicroRNAs are
naturally expressed, or produced, using instructions encoded in
DNA and are believed to play an important role in normal function
and in various pathologies.  The Company has established a CLIA-
certified laboratory in Philadelphia, which enables the Company to
develop, validate and commercialize its own diagnostic tests
applying its microRNA technology.

In its auditors' report for the 2011 financial statements, Kost
Forer Gabbay & Kasierer, in Tel-Aviv, Israel, expressed
substantial doubt about Rosetta Genomics' ability to continue as a
going concern.  The independent auditors noted that the Company
has incurred recurring operating losses and generated negative
cash flows from operating activities in each of the three years in
the period ended Dec. 31, 2011.

The Company reported a net loss after discontinued operations of
$8.83 million on $103,000 of revenues for 2011, compared with a
net loss after discontinued operations of $14.76 million on
$279,000 of revenues for 2010.

The Company's balance sheet at Dec. 31, 2011, showed $2.04 million
in total assets, $2.40 million in total liabilities, and a
stockholders' deficit of $356,000.

                         Bankruptcy Warning

The Company said in its annual report for the year ended Dec. 31,
2011, "We have used substantial funds to discover, develop and
protect our microRNA tests and technologies and will require
substantial additional funds to continue our operations.  Based on
our current operations, our existing funds, including the proceeds
from the January 2012 debt financing, will only be sufficient to
fund operations until late May, 2012.  We intend to seek funding
through collaborative arrangements and public or private equity
offerings and debt financings.  Additional funds may not be
available to us when needed on acceptable terms, or at all.  In
addition, the terms of any financing may adversely affect the
holdings or the rights of our existing shareholders.  For example,
if we raise additional funds by issuing equity securities, further
dilution to our then-existing shareholders may result.  Debt
financing, if available, may involve restrictive covenants that
could limit our flexibility in conducting future business
activities.  If we are unable to obtain funding on a timely basis,
we may be required to significantly curtail one or more of our
research or development programs.  We also could be required to
seek funds through arrangements with collaborators or others that
may require us to relinquish rights to some of our technologies,
tests or products in development or approved tests or products
that we would otherwise pursue on our own.  Our failure to raise
capital when needed will materially harm our business, financial
condition and results of operations, and may require us to seek
protection under the bankruptcy laws of Israel and the United
States."


SABANA DEL PALMAR: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Sabana Del Palmar, Inc.
        dba Project Name: Mirabella Village & Club
        250 West Main, PR 2
        Intersection PR 871
        Sierra Bayamon Hato Tejas
        Bayamon, PR 00957

Bankruptcy Case No.: 12-06177

Chapter 11 Petition Date: August 5, 2012

Court: United States Bankruptcy Court
       District of Puerto Rico (Old San Juan)

Debtor's Counsel: Carmen D Conde Torres, Esq.
                  C.CONDE & ASSOC.
                  254 San Jose Street
                  5th Floor
                  San Juan, PR 00901-1523
                  Tel: (787) 729-2900
                  Fax: (787) 729-2203
                  E-mail: notices@condelaw.com

Scheduled Assets: $262,415

Scheduled Liabilities: $49,594,964

A copy of the Company's list of its 20 largest unsecured creditors
filed together with the petition is available for free at
http://bankrupt.com/misc/prb12-06177.pdf

The petition was signed by Michael J. Scarfia, president.


SANTA YSABEL RESORT: Lender Seeks Chapter 11 Case Dismissal
-----------------------------------------------------------
Yavapai-Apache Nation, Santa Ysabel Resort and Casino's biggest
lender, is asking the bankruptcy judge in San Diego, Calif., to
dismiss the Chapter 11 filing by the Iipay Nation of Santa Ysabel
on grounds that tribes and some of the tribal businesses they own
don't qualify for bankruptcy relief.

In the bankruptcy petition, the casino described itself as an
unincorporated company owned by the Iipay Nation of Santa Ysabel,
a federally recognized tribe in Arizona.

Katy Stech, writing for Dow Jones Newswires, recounts that the
Yavapai-Apache Nation lent the casino $7 million and later bought
the casino's debt from J.P. Morgan Chase.   Santa Ysabel Casino
had borrowed $26 million from JPMorgan to build a 37,000-square
foot casino and a hotel.  The tribe couldn't afford to pay for
building materials and the hotel was never constructed, according
to court papers.  The casino opened in 2007 with poker tables and
about 350 slot machines.  Santa Ysabel Casino fell behind on loan
payments, and the Yavapai-Apache Nation won a $9 million tribal
court judgment in February.

There's a hearing on the dismissal motion on Sept. 4

Bill Rochelle, the bankruptcy columnist at Bloomberg News, reports
that in the motion to dismiss, the Apaches contend that it's
actually the Iipay tribe that's in bankruptcy and that an Indian
tribe is a governmental unit not eligible for bankruptcy.  In
support of dismissal, the Apaches cite an opinion by the U.S.
Court of Appeals in San Francisco saying that a tribe is a
governmental unit.  The Apaches argue that the casino isn't a
separately incorporated entity and thus can't file bankruptcy.
According to Dow Jones, the Santa Ysabel casino is about to test
the notion that Native American enterprises aren't eligible for
protection under U.S. bankruptcy law.  Dow Jones notes Native
American tribes are considered sovereign nations, and the
unincorporated businesses that they own aren't listed among the
entities that qualify for Chapter 11 protection, though bankruptcy
experts can't be sure that court protection is out of reach
without any case law to back it up.

"It isn't really clear that the tribe or a tribal instrumentality
can be a debtor in bankruptcy," said attorney Aaron Harkins, Esq.,
a partner at Faegre Baker Daniels LLP's tribal and restructuring
practices, according to Dow Jones.  "The prevailing view in the
industry is that they aren't."

Dow Jones reports that casino attorney Ron Bender said the Iipay
Nation's constitution gives the tribe's chairman the power to put
tribal businesses into bankruptcy. He said the case raises issues
that are "novel, complex, and of an unusual nature due to the
involvement of gaming laws, Indian gaming laws, Indian tribal law,
and federal Indian laws."

According to Dow Jones, Mr. Bender described the dismissal request
as part of the lender's effort to "destroy the debtor and cause a
shutdown of the debtor's casino," which employs 120 people. Mr.
Bender was unavailable to comment further.

Dow Jones relates a spokeswoman for the Yavapai-Apache referred
questions to the tribe's bankruptcy attorneys, who weren't
available for immediate comment.

Dow Jones notes Santa Ysabel's filing has rattled some of the
major lenders to Native American tribes.  Since the economic
downturn, some banks have begrudgingly restructured at least $1.7
billion worth of lending agreements with tribes that couldn't
afford debt payments on their gambling operations, according to a
report from Fitch Ratings.  Even though tribal casinos suffered
during the economic downturn, they have opted not to enter the
uncertain and expensive Chapter 11 process. Analysts have said
that out-of-court restructurings so far have rendered fair
results.  Creditors also have also been unwilling to test the
bankruptcy waters, scared off by the uncertainty over how the
bankruptcy law could come into conflict with tribal law.

Dow Jones recounts an Alaska Native corporation filed for
bankruptcy protection after the Exxon Valdez oil spill in 1989
hurt its fishing operations, and the tribally chartered Si Tanka
University in South Dakota filed in 2008.  Their eligibility to
seek creditor protection was never questioned by the courts or
creditors.  WSJ also relates the Sault Ste. Marie Tribe of
Chippewa Indians put its Greektown Casino in Detroit under
bankruptcy protection in 2008, but the case didn't raise eyebrows
because the casino itself wasn't located on tribal land.

               About Santa Ysabel Resort and Casino

Santa Ysabel Resort & Casino -- http://www.santaysabelcasino.com/
-- operates a casino located off of Highway 79 in North San Diego
County overlooking Lake Henshaw on tribal Indian reservation land
in Santa Ysabel, California.  The Casino is housed in a one-story,
37,000 square-foot building with 349 class III slot machines, four
poker tables, six table games, and a restaurant and bar with 200-
person seating capacity.  The Casino employs roughly 120 people
and is the largest employer in Santa Ysabel.  The Casino is owned
by the Iipay Nation of Santa Ysabel, formerly known as the Santa
Ysabel Band of Mission (Diegueno) Indians, a federally recognized
Indian tribe.  The Casino is operated pursuant to the Indian
Gaming Regulatory Act under title 25 of the United States Code.

The Casino was funded with a primary loan from JP Morgan in the
amount of roughly $26,000,000 and a secondary loan from the
Yavapai Apache Nation in the amount of $7,000,000.  In 2009 the
YAN purchased the JP Morgan Debt.  The Casino also has $1.3
million in unsecured trade debt.

The Iipay Nation of Santa Ysabel, a federally recognized Indian
Tribe, filed a resolution authorizing the Chapter 11 bankruptcy
filing of Santa Ysabel Resort and Casino (Bankr. S.D. Calif. Case
No. 12-09415) in San Diego on July 2, 2012.  The Debtor estimated
assets of up to $50 million and liabilities of up to $100 million.

Judge Hon. Peter W. Bowie presides over the case.  Ron Bender,
Esq., at Levene, Neale, Bender, Yoo & Brill LLP, in Los Angeles,
serves as counsel.  Virgil Perez, the Santa Ysabel tribal
Chairman, signed the Chapter 11 petition.


SDA INC: Files Schedules of Assets and Debts
--------------------------------------------
SDA, Inc., 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                $2,000,000
  B. Personal Property           $12,488,882
  C. Property Claimed as
     Exempt
  D. Creditors Holding
     Secured Claims                               $13,160,750
  E. Creditors Holding
     Unsecured Priority
     Claims                                          $689,198
  F. Creditors Holding
     Unsecured Non-priority
     Claims                                        $9,411,316
                                  -----------     -----------
        TOTAL                     $14,488,882     $23,261,264

A full text copy of the schedules of assets and liabilities is
available for free at http://bankrupt.com/misc/SDA_INC_sal.pdf

                   About Strauss Discount Auto

155 Route 10 Associates, Inc., SDA, Inc., and Wayne Philadelphia
Associates, Inc., sought Chapter 11 protection (Bankr. D.N.J. Case
Nos. 12-24414 to 12-24416) on June 5, 2012, in Newark, New Jersey.

SDA is a regional retailer of after-market automotive parts and
accessories and operator of automotive service centers and owns
commercial real estate located in Wayne, New Jersey.  Subsidiaries
Route 10 Associates and Wayne Philadelphia own commercial real
estate located in East Hanover and Wayne, respectively.

The Debtors ceased operations before its filed for bankruptcy in
June 5, 2012.

This is the fourth bankruptcy filing by the Strauss Discount Auto
business.  SDA's capital structure, for the most part, was formed
in late 2010 when SDA's predecessor, Autobacs Strauss, Inc.,
reorganized under Chapter 11 (Bankr. D. Del. Case No. 09-10358).
Autobacs Strauss Inc.'s plan of reorganization was confirmed on
Sept. 15, 2010, and became effective on Oct. 6, 2010.

Strauss had 111 stores in 1998, when it first filed for
bankruptcy.

Bankruptcy Judge Novalyn L. Winfield presides over the 2012
bankruptcy.  Kenneth Rosen, Esq., at Lowenstein Sandler PC, serves
as the Debtors' counsel.  PricewaterhouseCoopers LLP serves as
financial advisors.  SDA estimated $10 million to $50 million in
both assets and debts.  The petitions were signed by Joseph
Catalano, president.


SHEA LTD: Voluntary Chapter 11 Case Summary
-------------------------------------------
Debtor: Shea, Ltd.
        217 Conquest Blvd.
        Edinburg, TX 78539

Bankruptcy Case No.: 12-70471

Chapter 11 Petition Date: August 6, 2012

Court: United States Bankruptcy Court
       Southern District of Texas (McAllen)

Judge: Richard S. Schmidt

Debtor's Counsel: Richard L Fuqua, II, Esq.
                  FUQUA & ASSOCIATES, PC
                  5005 Riverway, Ste. 250
                  Houston, TX 77056
                  Tel: (713) 960-0277
                  E-mail: fuqua@fuquakeim.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $1,000,001 to $10,000,000

The Debtor did not file a list of its largest unsecured creditors
together with its petition.

The petition was signed by Hector Casas, trustee of Shea
Management Trust, general partner.


SIGNATURE GROUP: Company-Nominees Officially Elected to Board
-------------------------------------------------------------
Signature Group Holdings, Inc. disclosed that IVS Associates,
Inc., the independent inspector of election for the Company's
annual meeting of stockholders held on July 24, 2012, has
tabulated and certified the voting results for the Annual Meeting.
As confirmed by these final results, the stockholders have elected
all five of the company's director nominees - G. Christopher
Colville, John Koral, Patrick E. Lamb, Craig F. Noell and Philip
G. Tinkler - to the company's board of directors.

Craig Noell, Chief Executive Officer of Signature, said, "We are
pleased that our stockholders recognized the progress we have made
and supported our experienced and qualified director nominees.

The newly elected Board is committed to continuing to execute the
Company's current business plan for growth and to enhance value
for our stockholders."

The Company also reported that the final results confirmed that
stockholders voted to approve an amendment to the Amended and
Restated Signature Group Holdings, Inc. 2006 Performance Incentive
Plan that increased the authorized number of shares of company
common stock that may be issued under the Incentive Plan; ratified
the appointment of Squar, Milner, Peterson, Miranda & Williamson,
LLP as the Company's independent registered public accounting
firm; and approved the adjournment of the Annual Meeting to a
later date or dates, if necessary, to permit further solicitation
of proxies to approve an amendment to the Company's Amended and
Restated Articles of Incorporation to increase the authorized
number of shares of Company common stock.  The tabulation of
stockholder votes for the proposal to approve an amendment to the
Amended and Restated Articles of Incorporation to increase in the
authorized shares of company common stock has not been finalized,
since the Annual Meeting was adjourned to a later date with
respect to this proposal.

                       About Signature Group

Signature Group Holdings, Inc. --
http://www.signaturegroupholdings.com/-- is a diversified0
business and financial services enterprise with principal
activities in industrial distribution and special situations debt.
Signature has significant capital resources and is actively
seeking acquisitions as well as growth opportunities for its
existing businesses.  The Company was formerly a $9 billion in
assets industrial bank and financial services business that
reorganized during a two year bankruptcy period. The
reorganization provided for Signature to maintain Federal net
operating loss tax carryforwards in excess of $850 million.

Fremont General Corp. filed for Chapter 11 protection (Bankr. C.D.
Calif. Case No. 08-13421) on June 18, 2008.  Robert W. Jones,
Esq., and J. Maxwell Tucker, Esq., at Patton Boggs LLP, Theodore
Stolman, Esq., Scott H. Yun, Esq., and Whitman L. Holt, Esq., at
Stutman Treister & Glatt, represented the Debtor as counsel.
Kurtzman Carson Consultants LLC was the Debtor's noticing agent
and claims processor.  Lee R. Bogdanoff, Esq., Jonathan S.
Shenson, Esq., and Brian M. Metcalf, at Klee, Tuchin, Bogdanoff &
Stern LLP, represented the Official Committee of Unsecured
Creditors as counsel.  Fremont's formal schedules showed
$330,036,435 in total assets and $326,560,878 in total debts.

Fremont General emerged from bankruptcy and filed Amended and
Restated Articles of Incorporation with the Secretary of State of
Nevada on June 11, 2010, which, among other things, changed the
Debtor's name to Signature Group Holdings, Inc.

Signature's plan of reorganization became effective on June 11,
2010.  The name change also took effect as of that date.


SIRIUS INT'L: Fitch Affirms 'BB+' Rating on $250MM Pref. Shares
---------------------------------------------------------------
Fitch Ratings has affirmed all Issuer Default Ratings (IDRs), debt
and Insurer Financial Strength (IFS) ratings for White Mountains
Insurance Group, Ltd. (White Mountains) and its holding company
subsidiaries and property/casualty insurance subsidiaries,
including OneBeacon Insurance Group, Ltd.'s subsidiaries
(OneBeacon; 75.2% ownership by White Mountains) and Sirius
International Insurance Group, Ltd.'s subsidiaries (Sirius Group;
100% ownership by White Mountains).  The Rating Outlook is Stable.

Fitch's rating rationale for the affirmation of White Mountains'
ratings reflects the company's low financial and operating
leverage, opportunistic business approach and favorable financial
flexibility.  The ratings also reflect anticipated challenges in
the overall competitive, but generally improving property/casualty
market rate environment, and sizable levels of run-off reserves
and asbestos and environmental (A&E) exposure that have the
potential for adverse reserve development.

White Mountains posted net income of $120 million through the
first six months of 2012, improved from a $17 million net loss for
the comparable prior year period due to reduced catastrophe losses
thus far in 2012.  The company posted sizable net income of $768
million for full year 2011, driven by a $678 million gain on the
sale of Esurance and Answer Financial to The Allstate Corporation
in October 2011.

OneBeacon posted favorable GAAP combined ratios of 94% for the
first six months of 2012 and 96% for full year 2011.  Sirius Group
posted a GAAP combined ratio of 83% for the first six months of
2012.  This is improved from 100% for full year 2011, which saw 24
points of catastrophe losses driven by the Japanese earthquake and
tsunami, the New Zealand earthquakes, floods in Thailand, and
severe weather and tornados in the Midwestern U.S.

White Mountains' financial leverage ratio continues to be modest
at 13.6% at June 30, 2012 and 12.7% at Dec. 31, 2011.  This is
down from 16.3% at Dec. 31, 2010 due to $150 million in
repurchases of OneBeacon's outstanding debt in 2011 and a 3% net
increase in White Mountains' adjusted common shareholders' equity
since year-end 2010, as strong net income has been partially
offset by increased common share repurchases.

White Mountains utilizes a conservative amount of operating
leverage with net premiums written to total shareholders' equity
of 0.42x in 2011, which is down considerably from recent years as
premiums have declined almost 50% since 2006 following the recent
sale of businesses, while total equity has declined only 8%.

Fitch's ratings reflect White Mountains' disciplined underwriting
and operating strategy as the company continually evaluates the
best use of its financial resources and actively manages and
deploys its capital opportunistically.  This strategy includes
selling those businesses that either do not fit within the core
operations of the company or have value to other companies/buyers
as entities or renewal rights in excess of White Mountains'
assessment of their value.

White Mountains' sale transactions over the last several years
have freed up capital that previously supported the business
writings, providing financial flexibility that the company can use
to support additional business writings, investment opportunities,
debt reduction, dividends, or share repurchases.  However, Fitch
expects that White Mountains will continue to maintain a level of
insurance company capitalization that is consistent with the
current ratings.

Key rating triggers that could lead to an upgrade include
improvement in operating results in line with higher rated peers,
overall flat to favorable loss reserve development, debt-to-total
capital maintained below 20%, run rate operating earnings-based
interest and preferred dividend coverage of at least 5x, continued
strong capitalization of the insurance subsidiaries and increased
stability in longer term strategic operations and results.

Key rating triggers that could lead to a downgrade include
significant adverse loss reserve development, future earnings that
are significantly below industry levels, sizable deterioration in
insurance subsidiary capitalization, debt-to-total capital
maintained above 30% and additional A&E losses for OneBeacon
significantly above the remaining $198 million available limit
under the $2.5 billion National Indemnity Company cover.

Fitch affirms the following ratings with a Stable Outlook:

White Mountains Insurance Group, Ltd.

  -- IDR at 'BBB+'.

OneBeacon U.S. Holdings, Inc.

  -- IDR at 'BBB+';
  -- $270 million 5.875% due May 15, 2013 at 'BBB'.

Sirius International Group, Ltd.

  -- IDR at 'BBB+';
  -- $400 million 6.375% due March 20, 2017 at 'BBB';
  -- $250 million perpetual non-cumulative preference shares at
     'BB+'.

OneBeacon Insurance Group and Their Members:
Atlantic Specialty Insurance Company
Camden Fire Insurance Association (The)
Employers' Fire Insurance Company (The)
Essentia Insurance Company
Homeland Insurance Company of New York
Northern Assurance Company of America (The)
OneBeacon America Insurance Company
OneBeacon Insurance Company
OneBeacon Midwest Insurance Company
Pennsylvania General Insurance Company
Traders & General Insurance Company

  -- IFS at 'A'.

Sirius International Insurance Corporation
Sirius America Insurance Company

  -- IFS at 'A-'.


SL GREEN: S&P Gives 'B+' Rating on $100MM Series I Preferred Stock
------------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' rating to the
proposed $100 million series I cumulative redeemable preferred
stock issued by SL Green Realty Corp. The company indicated that
it intends to use net proceeds from the offering for general
corporate purposes, including redeeming shares of its (higher-
coupon) series C preferred stock, which would marginally improve
fixed-charge coverage (FCC) measures, and/or to repay outstanding
debt.

"Standard & Poor's 'BB+' corporate credit rating and stable
outlook on SL Green Realty Corp. and its operating subsidiaries,
SL Green Operating Partnership L.P. and Reckson Operating
Partnership L.P. (collectively, SL Green), reflect a well-
positioned office portfolio that should continue to outperform its
markets in terms of occupancy. Management's asset recycling
activity continues to improve portfolio asset quality; however,
the company's portfolio maintains considerable geographic and
financial services-related tenant concentrations. SL Green's debt
service and FCC measures are somewhat low, although this is partly
due to the company replacing a portion of its short-term debt with
more costly longer-term capital (including common equity) over the
prior year. We consider the company's financial profile as
'significant' and its business profile as 'satisfactory'. We
anticipate deleveraging in 2012, along with incremental revenue
from recent opportunistic investments (with low current yield), to
support FCC improvement this year," S&P said.

RATING LIST
SL Green Realty Corp.   Rating
Corporate credit        BB+/Stable/--

RATING ASSIGNED
SL Green Realty Corp.   Rating
$100 mil. pfd stock     B+


SNK ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: SNK Enterprises, Inc.
        dba Country Hearth Inn
        3886 Biggin Church Road North
        Jacksonville, FL 32224

Bankruptcy Case No.: 12-05073

Chapter 11 Petition Date: August 1, 2012

Court: U.S. Bankruptcy Court
       Middle District of Florida (Jacksonville)

Debtor's Counsel: Brett A. Mearkle, Esq.
                  LAW OFFICE OF BRETT A. MEARKLE, P.A.
                  8777 San Jose Boulevard, Suite 801
                  Jacksonville, FL 32217
                  Tel: (904) 352-1342
                  Fax: (904) 352-1814
                  E-mail: bmearkle@mearklelaw.com

Scheduled Assets: $1,218,284

Scheduled Liabilities: $2,871,446

A copy of the Company's list of its 20 largest unsecured creditors
is available for free at http://bankrupt.com/misc/flmb12-05073.pdf

The petition was signed by Narendra Naik, managing member.


SOLYNDRA LLC: Plan Justifies Exclusivity Through August
-------------------------------------------------------
Bill Rochelle, the bankruptcy columnist at Bloomberg News, reports
that Solyndra LLC, the liquidated solar panel maker partially
funded by the U.S. Energy Department, was given an extension until
Aug. 31 of the exclusive right to propose a Chapter 11 plan.

According to the report, Solyndra filed a liquidating plan at the
end of July.  The U.S. Bankruptcy Court in Delaware scheduled a
hearing on Sept. 7 for approval of the explanatory disclosure
statement.  The plan is based on settlements with the creditors'
committee, workers who were fired without the required 60 days'
notice, and secured lenders.  The plan will pay from 2.5% to 6% to
unsecured creditors of Solyndra with claims totaling as much as
$120 million.  Unsecured creditors with $27 million in claims
against the holding company are projected to have a 3% dividend.
So-called Tranche A lenders, with $69.7 million in claims, are
projected for a 50% to 100% recovery.  Tranche B lenders, owed
$142.8 million, could receive nothing.  In the most favorable
case, their recovery would be 17%.  Tranche D lenders with $385
million in claims and Tranche E lenders owed $186.6 are likely to
receive nothing.

                        About Solyndra LLC

Founded in 2005, Solyndra LLC was a U.S. manufacturer of solar
photovoltaic solar power systems specifically designed for large
commercial and industrial rooftops and for certain shaded
agriculture applications.  The Company had 968 full time employees
and 211 temporary employees.  Solyndra has sold more than 500,000
of its panels since 2008 and generated cumulative sales of over
$250 million.

Fremont, California-based Solyndra and affiliate 360 Degree Solar
Holdings Inc. sought Chapter 11 bankruptcy protection (Bankr. D.
Del. Lead Case No. 11-12799) on Sept. 6, 2011.  Solyndra is at
least the third solar company to seek court protection from
creditors since August 2011.

Judge Mary F. Walrath presides over the Debtors' cases.  The
Debtors are represented by Pachulski Stang Ziehl & Jones LLP as
legal adviser.  AlixPartners LLP serves as noticing claims and
balloting agent.  Imperial Capital LLC serves as the company's
investment banker and financial adviser.  The Debtors also tapped
former Massachusetts Governor William F. Weld, now with the law
firm McDermott Will & Emery, to represent the company in
government investigations and related litigation.  BDO Consulting,
a division of BDO USA, LLP, as financial advisor and BDO Capital
Advisors, LLC, serves as investment banker for the creditors'
panel.

The Official Committee of Unsecured Creditors of Solyndra LLC has
tapped Blank Rome LLP as counsel and BDO Consulting as financial
advisors.

In October 2011, the Debtors hired Berkeley Research Group, LLC,
and designated R. Todd Neilson as Chief Restructuring Officer.

Solyndra owed secured lenders $783.8 million, including
$527.8 million to the U.S. government pursuant to a federal loan
guarantee, and held assets valued at $859 million as of the
Petition date.  The U.S. Federal Financing Bank, owned by the U.S.
Treasury Department, is the Company's biggest lender.

When they filed for Chapter 11, the Debtors pursued a two-pronged
strategy to effectuate either a sale of their business to a
"turnkey" buyer who may acquire substantially all of Solyndra's
assets or, if the Debtors were unable to identify any potential
buyers, an orderly liquidation of the assets for the benefit of
their creditors.

Solyndra did not receive acceptable offers to buy the business as
a going concern.  Two auctions late last year brought in a total
of $8 million.  A three-day auction in February generated another
$3.8 million.  An auction in June generated $1.79 million from the
sale of 7,200 lots of equipment.


ST. JOHN'S RIVERSIDE: S&P Raises Rating on Revenue Debt to 'B+'
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its rating on Yonkers
Industrial Development Agency, N.Y.'s revenue debt, issued for St.
John's Riverside Hospital (SJRH), one notch to 'B+' from
'B'. The outlook is positive.

"The upgrade and positive outlook reflect Standard & Poor's
assessment of the hospital's measurable improvement in operations
in fiscal 2011 that generated, what Standard & Poor's considers,
solid coverage, driven by increasing volume and improved, though
still weak, liquidity. The rating actions also reflect the rating
service's view of the hospital's improved operations over the past
two-and-a-half years compared with previous periods despite some
softness in the current year compared to the past year's, in
Standard & Poor's opinion, very strong performance.  Standard &
Poor's believes the continued strength in SJRH's operations will
allow for sustained cash flow improvement; in addition, the rating
service expects liquidity over the next several years to continue
to improve," S&P said.

"We believe the hospital will likely sustain its recently
demonstrated positive operations over the next two years, allowing
for continued liquidity improvement. We also believe management's
renewed commitment to maintaining this improvement, evidenced by
several current expense initiatives at the hospital, will likely
continue to help strengthen operations," said Standard & Poor's
credit analyst Margaret McNamara. "A higher rating is possible
over the two-year outlook period if management can maintain the
current operating performance with margins at about 4% and if
management were to continue to generate, what we consider, strong
cash flow that allows for continued liquidity improvement,
specifically days' cash on hand in excess of 50 days'. A lower
rating or stable outlook, however, could occur if liquidity were
to decrease to levels similar to fiscal 2010 or if volume were to
decrease, resulting in operational deterioration."

More specifically, the rating reflects Standard & Poor's opinion
of the hospital's:

- Improved operating and profit margins at 6.59% and 6.76% in
   fiscal 2011 compared with 2.09% and 2.39% in fiscal 2010;

- Improved debt service coverage due to improved cash flow;

- Improved balance sheet metrics, measured by days' cash on
   hand, which increased to 41 days' in fiscal 2011 from 24 days'
   in fiscal 2010; and

- Large and stable admission base that has grown consistently
   over the past four years but now appears to be stabilizing.

"Despite SJRH's improvement in operations and liquidity in fiscal
2011 and through the second quarter of fiscal 2012, ended June 30,
2012, the balance sheet, which remains, in the rating service's
opinion, weak -- evidenced by SJRH's limited liquidity, very high
average age of plant, and pension plan with a funded status of 65%
at fiscal year-end 2011 -- currently precludes a higher rating,"
S&P said.

"A gross receipts pledge of St. John's and a mortgage on the
facility secure the bonds," S&P said.


STEREOTAXIS INC: Posts $2.8 Million Net Income in Second Quarter
----------------------------------------------------------------
Stereotaxis, Inc., reported net income of $2.80 million on $10.51
million of total revenue for the three months ended June 30, 2012,
compared with a net loss of $9.69 million on $11.60 million of
total revenue for the same period a year ago.

The Company reported a net loss of $3 million on $22.79 million of
total revenue for the six months ended June 30, 2012, compared
with a net loss of $19.24 million on $21.82 million of total
revenue for the same period during the prior year.

The Company's balance sheet at June 30, 2012, showed $36.61
million in total assets, $50.09 million in total liabilities and a
$13.47 million total stockholders' deficit.

"In the second quarter, we generated two new Niobe ES orders and
upgraded 22 customer sites, bringing the total upgrade
installations to 41 in the first half of the year and surpassing
our milestone," said Michael P. Kaminski, president and chief
executive officer of Stereotaxis.  "Clinical adoption at Niobe ES
sites strengthened as utilization rose 28% during the first half
of 2012, compared to the year ago period.  Overall, the pipeline
of interest in our Epoch Solution robotic system grew stronger and
we are encouraged by our steady progress in driving the system
into the existing customer base."

A copy of the press release is available for free at:

                        http://is.gd/Bx7P4O

                         About Stereotaxis

Based in St. Louis, Mo., Stereotaxis, Inc., designs, manufactures
and markets the Epoch Solution, which is an advanced remote
robotic navigation system for use in a hospital's interventional
surgical suite, or "interventional lab", that the Company believes
revolutionizes the treatment of arrhythmias and coronary artery
disease by enabling enhanced safety, efficiency and efficacy for
catheter-based, or interventional, procedures.

For the year ended Dec. 31, 2011, Ernst & Young LLP, in St. Louis,
Missouri, expressed substantial doubt about Stereotaxis' ability
to continue as a going concern.  The independent auditors noted
that the Company has incurred recurring operating losses and has a
working capital deficiency.

The Company reported a net loss of $32.0 million for 2011,
compared with a net loss of $19.9 million for 2010.


STOCKTON, CA: Judge Powerless to Reinstate Health Benefits
----------------------------------------------------------
Bill Rochelle, the bankruptcy columnist at Bloomberg News, reports
that the bankruptcy judge handling the municipal bankruptcy for
Stockton, California, ruled Aug. 6 that he lacks power to force
the city to reinstate retiree health benefits.   Instead, retirees
must file claims, participate in the bankruptcy and receive
distributions to which they are entitled under a municipal debt
adjustment plan, the judge said.

The report relates that an association of retirees filed suit in
bankruptcy court on July 10, asking U.S. Bankruptcy Judge
Christopher M. Klein to force the city to reinstate health
benefits.  The city had decided to reduce or eliminate retiree
health benefits in connection with its Chapter 9 filing.  The
report notes the retirees argued that they have vested contractual
rights to health coverage protected by both the federal and
California constitutions.

According to the report, Judge Klein in a 40-page opinion filed
Aug. 6 disagreed with the retirees' contentions.  Dismissing the
retirees' lawsuit, Judge Klein relied on Section 904 of the U.S.
Bankruptcy Code, which prohibits the bankruptcy court from
interfering with the property or revenue of a municipality in
bankruptcy.  Judge Klein explained how the provision was added to
bankruptcy law as a protection against intrusions into state
sovereignty.  Judge Klein said he was powerless to compel
reinstatement of health benefits even though it "may lead to
tragic consequences." according to the report.

The report relates the judge explained how the retirees aren't
left empty handed.  Retirees are entitled to file claims for lost
benefits, vote for or against any plan the city proposes,
participate in the Chapter 9 process, and receive distributions
provided under whatever plan is ultimately approved, the judge
said.

The report notes Judge Klein pointed out that Section 1114 of the
Bankruptcy Code isn't applicable in Chapter 9 cases.  That
provision prohibits a company in Chapter 11 reorganization from
reducing retiree benefits without first undergoing an extensive
court litigation process.

                     About Stockton, California

The City of Stockton, California, filed a Chapter 9 petition
(Bankr. E.D. Calif. Case No. 12-32118) in Sacramento on June 28,
2012, becoming the largest city to seek creditor protection in
U.S. history.  The city was forced to file for bankruptcy after
talks with bondholders and labor unions failed.  Stockton
estimated more than $1 billion in assets and in excess of $500
million in liabilities.

The city, with a population of about 300,000, identified the
California Public Employees Retirement System as the largest
unsecured creditor with a claim of $147.5 million for unfunded
pension costs.  In second place is Wells Fargo Bank NA as trustee
for $124.3 million in pension obligation bonds.  The list of
largest creditors includes $119.2 million owing on four other
series of bonds.

The city is being represented by Marc A. Levinson, Esq., at
Orrick, Herrington & Sutcliffe LLP.  The petition was signed by
Robert Deis, city manager.

Mr. Levinson also represented the city of Vallejo, Calif. in its
2008 bankruptcy.  Vallejo filed for protection under Chapter 9
(Bankr. E.D. Calif. Case No. 08-26813) on May 23, 2008, estimating
$500 million to $1 billion in assets and $100 million to $500
million in debts in its petition.  In August 2011, Vallejo was
given green light to exit the municipal reorganization.   The
Vallejo Chapter 9 plan restructures $50 million of publicly held
debt secured by leases on public buildings.  Although the Plan
doesn't affect pensions, it adjusts the claims and benefits of
current and former city employees.  Bankruptcy Judge Michael
McManus released Vallejo from bankruptcy on Nov. 1, 2011.


STONEY'S NORTH: Bankruptcy Filing Blocks Eviction Proceeding
------------------------------------------------------------
Steve Green at Vegas Inc. reports that Stoney's North Forty LLC
has filed for Chapter 11 bankruptcy protection to block eviction
proceedings.

North Forty owns a barbecue restaurant and saloon in northwest Las
Vegas, Nevada.  The report says the company is associated with the
Stoney's Rockin' Country bars on Las Vegas Boulevard South and in
Evansville, Indiana, though they're not part of the bankruptcy
proceedings.

According to the report, the Company was hit with an eviction
lawsuit in Las Vegas Justice Court on July 13 by Centennial Center
LLC, its landlord for the premises at 5990 Centennial Center Blvd.

The report relates Christopher Lowden, one of the managers of
North Forty, said in a court declaration that the business fell
behind on rental payments because the downturn in the Las Vegas
economy caused a "significant decrease in business revenue."

The report, citing court documents, says North Forty didn't
immediately disclose detailed financial information.  It did say
Centennial Center is owed more than $600,000 and that its
estimated liabilities top $1 million.

The report says the Company's assets are valued at between
$100,000 and $500,000.


SUNFLOWER HOSPITALITY: Voluntary Chapter 11 Case Summary
--------------------------------------------------------
Debtor: Sunflower Hospitality, LLC
        dba LaQuinta Inns & Suites
        55899 Twenty Nine Palms Hwy.
        Yucca Valley, CA 92284

Bankruptcy Case No.: 12-35102

Chapter 11 Petition Date: August 6, 2012

Court: United States Bankruptcy Court
       Northern District of Texas (Dallas)

Judge: Stacey G. Jernigan

Debtor's Counsel: Arthur I. Ungerman, Esq.
                  One Glen Lakes Tower
                  8140 Walnut Hill Ln., No. 301
                  Dallas, TX 75231
                  Tel: (972) 239-9055
                  Fax: (972) 239-9886
                  E-mail: arthur@arthurungerman.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $1,000,001 to $10,000,000

The Debtor did not file a list of its largest unsecured creditors
together with its petition.

The petition was signed by Avtar Gadria, managing member.


T3 MOTION: Due Date of JMJ Financial Note Extended to August 3
--------------------------------------------------------------
T3 Motion, Inc., and JMJ Financial entered into an amendment which
extended the due date of the $275,000 Note until Aug. 3, 2012.

T3 Motion entered into a Securities Purchase Agreement with
JMJ Financial on July 10 2012.  In connection with the Purchase
Agreement, the Company and JMJ also entered into a Secured
Promissory Note Agreement and a Security Agreement.  Pursuant to
the terms and subject to the conditions set forth in the Purchase
Agreement, JMJ provided a senior secured bridge loan to the
Company in the aggregate principal amount of $275,000.  The Note
was originally due 21 days following receipt of the net proceeds,
or July 31, 2012.

                          About T3 Motion

Costa Mesa, Calif.-based T3 Motion, Inc., develops and
manufactures T3 Series vehicles, which are electric three-wheel
stand-up vehicles that are directly targeted to the public safety
and private security markets.

After auditing the 2011 results, KMJ Corbin & Company LLP, in
Costa Mesa, 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 has had negative cash flows from operations since
inception, and at Dec. 31, 2011, has an accumulated deficit of
$54.9 million.

The Company reported a net loss of $5.50 million in 2011, compared
with a net loss of $8.32 million in 2010.

The Company's balance sheet at March 31, 2012, showed $3.37
million in total assets, $2.47 million in total liabilities and
$903,439 in total stockholders' equity.


TANNIN INC: Brantley & Associates OK'd for Real Estate Appraisal
----------------------------------------------------------------
Tannin, Inc., obtained authorization from the U.S. Bankruptcy
Court for the Southern District of Alabama to employ Brantley &
Associates to provide real property appraisal services to the
Debtor during its reorganization.

As reported by the Troubled Company Reporter on June 26, 2012,
Brantley & Associates will perform appraisal on the Debtor's
several real property, including approximately 21-acre parcel of
unimproved real property and two lots which are mortgaged to
Vision Bank.  The Debtor's Plan of Reorganization proposes to
convey the 21-acre parcel of property to mortgage Vision Bank to
the secured creditor in satisfaction of its debt.

                        About Tannin Inc.

Orange Beach, Alabama-based Tannin, Inc. owned West 21 Acres, an
approximately 21-acre parcel of undeveloped real property located
on the west side of the Village of Tannin, which is subject to the
first priority mortgage lien of Vision Bank.

Tannin Inc. filed for Chapter 11 protection (Bankr. S.D. Ala. Case
No. 12-00593) on Feb. 20, 2012.  Alexandra K. Garrett, Esq., and
Lawrence B. Voit, Esq., at Silver, Voit & Thompson represents the
Debtor in its restructuring effort.  The Debtor has scheduled
assets of $54,396,740 and scheduled liabilities at $2,379,421.


TFG PROPERTIES: Case Summary & 2 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: TFG Properties, LLC
        13849 Park Center Road
        Herndon, VA 20171

Bankruptcy Case No.: 12-14788

Chapter 11 Petition Date: August 6, 2012

Court: United States Bankruptcy Court
       Eastern District of Virginia (Alexandria)

Judge: Robert G. Mayer

Debtor's Counsel: Nathan A. Fisher, Esq.
                  3977 Chain Bridge Road, #2
                  Fairfax, VA 22030
                  Tel: (703) 691-1642
                  Fax: (703) 691-0192
                  E-mail: Fbarsad@cs.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $1,000,001 to $10,000,000

A copy of the Company's list of its two largest unsecured
creditors filed together with the petition is available for free
at http://bankrupt.com/misc/vaeb12-14788.pdf

The petition was signed by Carlo Puller, managing member.


TEXAS LAND: Case Summary & 3 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Texas Land & Realty, LLC
        3534 Fairmount
        Dallas, TX 75219

Bankruptcy Case No.: 12-35120

Chapter 11 Petition Date: August 6, 2012

Court: United States Bankruptcy Court
       Northern District of Texas (Dallas)

Judge: Stacey G. Jernigan

Debtor's Counsel: Michael Wiss, Esq.
                  MICHAEL J WISS AND ASSOCIATES
                  11882 Greenville Ave.
                  Suite 111, Box 11
                  Dallas, TX 75243
                  Tel: (972) 889-9050
                  Fax: (972) 889-1175
                  E-mail: mjwiss@hotmail.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $500,001 to $1,000,000

A copy of the Company's list of three unsecured creditors is
available for free at http://bankrupt.com/misc/txnb12-35120.pdf

The petition was signed by Dale Foster, member.


THELEN LLP: Judge OKs Case Trustee's Clawback Deal With Ex-Partner
------------------------------------------------------------------
Maria Chutchian at Bankruptcy Law360 reports that U.S. Bankruptcy
Judge Allan L. Gropper on Tuesday signed off on the latest
settlement between Thelen LLP's Chapter 7 trustee and a former
partner, resolving claims surrounding the attorney's compensation
in the years the firm was nearing its end.

Thelen LLP, formerly known as Thelen Reid Brown Raysman & Steiner
-- http://thelen.com/-- is a bicoastal American law firm in
process of dissolution.  It was formed as a product between two
mergers between California and New York-based law firms, mostly
recently in 2006.  Its headcount peaked at roughly 600 attorneys
in 2006, and had 500 early in 2008, with offices in eight cities
in the United States, England and China.

In October 2008, Thelen's remaining partners voted to dissolve the
firm.  As reported by the Troubled Company Reporter on Sept. 22,
2009, Thelen LLP filed for Chapter 7 protection.  The filing was
expected due to the timing of a writ of attachment filed by one of
Thelen's landlords, entitling the landlord to $25 million of the
Company's assets.  The landlord won approval for that writ in June
2009, but Thelen could void the writ by filing for bankruptcy
within 90 days of that court ruling.  Thelen, according to AM Law
Daily, has repaid most of its debt to its lending banks.


THERATECHNOLOGIES INC: Gets Minimum Bid Price Notice
----------------------------------------------------
Theratechnologies Inc. disclosed that it received a letter from
the listing qualifications department staff of the NASDAQ Stock
Market LLC (NASDAQ) on Aug. 7, 2012 notifying Theratechnologies
that, for the last 30 consecutive business days, the bid price of
its common shares had closed below $1.00 per share, the minimum
closing bid price required by the continued listing requirements
set forth in NASDAQ Listing Rule 5450(a) (1).

Pursuant to NASDAQ Listing Rule 5810(c) (3) (A), Theratechnologies
has 180 calendar days, or until Feb. 4, 2013, to regain compliance
with the minimum bid price requirement.  If at any time before
this date Theratechnologies' common shares have a closing bid
price of $1.00 or more for a minimum of 10 consecutive business
days, NASDAQ staff will notify Theratechnologies that it has
regained compliance.

As a result, the notice has no effect at this time on the listing
of Theratechnologies' common shares on the NASDAQ Global Market,
which will continue to trade under the symbol "THER".

If Theratechnologies does not regain compliance with NASDAQ
Listing Rule 5450(a)(1) by Feb. 4, 2013, Theratechnologies may be
eligible for more time if it submits an application to transfer
its securities to the NASDAQ Capital Market.  Following submission
of the application, Theratechnologies may be eligible for an
additional 180-day period to regain compliance with the minimum
bid price requirement if it meets the continued listing
requirement for market value of publicly held shares and all other
initial listing standards, with the exception of the bid price
requirement, for the NASDAQ Capital Market and provides notice of
its intention to cure the deficiency during the second compliance
period.

Should NASDAQ conclude that Theratechnologies will not be able to
cure the deficiency, NASDAQ will provide notice that its
securities will be subject to delisting.  Alternatively,
Theratechnologies may appeal NASDAQ's decision to a Listing
Qualifications Panel.

Theratechnologies intends to monitor the bid price for its common
shares between now and Feb. 4, 2013, and will assess all its
available options under the circumstances during this period.

Theratechnologies (CA:TH) -- http://www.theratech.com/-- is a
specialty pharmaceutical company that discovers and develops
innovative therapeutic peptide products, with an emphasis on
growth-hormone releasing factor peptides.


TRAVELPORT HOLDINGS: Antonios Basoukeas Named Group Vice Pres.
--------------------------------------------------------------
Travelprt Limited's Board of Directors appointed Antonios (Tony)
Basoukeas as the Company's Group Vice President and Group
Financial Controller.

Mr. Basoukeas joined Travelport in January 2009 and has served as
Head of Financial Planning, Reporting and Commercial Finance.
Prior to joining Travelport, Mr. Basoukeas served in various roles
with General Electric Corporation since 1990, including the role
of Chief Financial Officer of GE SeaCo, the container leasing part
of General Electric.  Prior to General Electric, Mr. Basoukeas
held positions with Del Monte Corporation and KMPG Peat Marwick,
where he obtained his Certified Public Accounting accreditation.

                     About Travelport Holdings

Travelport Holdings is the direct parent of Travelport Limited, is
a broad-based business services company and a leading provider of
critical transaction processing solutions to companies operating
in the global travel industry.  With a presence in 160 countries
and approximately 3,500 employees, Travelport is comprised of the
global distribution system (GDS) business, which includes the
Galileo and Worldspan brands and its Airline IT Solutions
business, which hosts mission critical applications and provides
business and data analysis solutions for major airlines.

Travelport also owns approximately 48% of Orbitz Worldwide (NYSE:
OWW), a leading global online travel company.  Travelport is a
private company owned by The Blackstone Group, One Equity
Partners, Technology Crossover Ventures, and Travelport
management.

Travelport Holdings Limited is a holding company with no direct
operations.  Its principal assets are the direct and indirect
equity interests it holds in its subsidiaries, including
Travelport Limited.

The Company's balance sheet at Dec. 31, 2011, showed $3.34 billion
in total assets, $4.30 billion in total liabilities, and a
$957 million total deficit.

                          *     *     *

As reported by the TCR on Oct. 10, 2011, Standard & Poor's Ratings
Services lowered its long-term corporate credit ratings on travel
services provider Travelport Holdings Limited (Travelport
Holdings) and indirect subsidiary Travelport LLC (Travelport) to
'SD' (selective default) from 'CC'.

The downgrades follow the implementation of a capital
restructuring, which was necessary because of the Travelport
group's high leverage, weak liquidity, and the upcoming maturity
of its $693 million (as of end-June 2011) PIK loan in March 2012.
"According to our criteria, we view this restructuring as a
distressed exchange and tantamount to a default (see 'Rating
Implications Of Exchange Offers And Similar Restructurings,
Update,' published May 12, 2009, on RatingsDirect on the Global
Credit Portal)," S&P related.


TRI-VALLEY: In Chapter 11; DIP Lenders Require Quick Sale
---------------------------------------------------------
Tri-Valley Corporation and three affiliates filed Chapter 11
bankruptcy petitions (Bankr. D. Del. Lead Case No. 12-12291) on
Aug. 7 with funding from lenders that require a prompt sale of the
business.

The Company has received a debtor-in-possession financing
commitment of $11,048,078 by its senior secured lender George T.
Gamble 1991 Trust, of which $3,850,000 represents new credit
availability, to support the Debtors' business operations during
the Chapter 11 cases.  According to the motion filed with the
bankruptcy court seeking approval of the DIP financing, the loans
will mature Nov. 15, 2012 or earlier if milestones are not
achieved.  The Debtors are required to:

   * file a motion for approval of the auction procedures within 5
     days following the Petition Date;

   * obtain approval of the auction procedures within 30 days of
     the Petition Date;

   * conduct the auction within 75 days of the Petition Date;

   * obtain approval of the sale within 80 days of the Petition
     Date; and

   * close the sale of the assets within 90 days of the Petition
     Date

Tri-Valley already owes Gamble $7,198,079 for secured loans
provided prepetition.  The Debtors also owe $527,800 under an
unsecured promissory note issued to Gary D. Borgna and related
entities.  The Debtors estimate that the total unsecured debt,
including the note, is $9.4 million

                  Bankruptcy Sale Best Option

Maston N. Cunningham, president and CEO of Tri-Valley, said in a
court filing that the Debtors have sought Chapter 11 protection
due to insufficient cash flow from operations, disputes concerning
the Opus Partnership, and an investigation by the U.S. Securities
and Exchange Commission.

The Company reported net losses of $8.7 million and $11.7 million
in 2010 and 2011.

The company said in a statement announcing the bankruptcy filing
that during the month of June 2012, the Company worked with FTI
Consulting, Inc., the Company's financial advisor, to evaluate
cash flows and assess its liquidity.  In June and early July, the
Company, representatives of the Gamble Trust and the Opus Special
Committee ("OSC"), met to discuss potential solutions to the
Debtors' pressing need for capital and the strategic alternatives
available under present circumstances.

After further consultation with the Gamble Trust, the OSC and
their respective advisors prior to the filing date, the Company
concluded that the only feasible way to repay creditors and
generate a substantial return to Opus investors was to seek to
sell substantially all of the Debtors' assets, including those at
Pleasant Valley and Claflin, in a competitive sale process under
Section 363 of the Bankruptcy Code.  The Debtors intend to propose
a Chapter 11 plan that simultaneously (i) resolves the outstanding
claims between Opus, and Tri-Valley and TVOG, and (ii) distributes
the expected proceeds of sale fairly and equitably.

Mr. Cunningham said, "Uncertainties surrounding, among other
things, the outstanding alleged claims by Opus and the ongoing
inquiry by the staff of the Securities and Exchange Commission,
have made the Company unattractive for the significant additional
funding that would have been required to avoid the bankruptcy
process and continue exploring strategic alternatives.  We expect
that a robust sale process for our oil, gas and mineral assets,
and for Opus' oil and gas assets, will produce a substantial
recovery for Tri-Valley creditors and for investors in the Opus
partnership."

The Debtors have filed a series of motions with the Bankruptcy
Court to assure the continuity and stability of operating their
respective businesses, including the payment of wages and the
continuation of benefit programs.  The Company expects operations
to continue as usual throughout this process.

The Company believes that there may not be any value for Tri-
Valley stockholders resulting from the bankruptcy process, given,
among other things, the priority of claims of the Company's
secured and unsecured creditors and the resolution of the
outstanding alleged claims between Opus, Tri-Valley and TVOG.

                     Sale Motion and Plan

While not filed as part of the first day motions, the Debtors
intend to file pleadings within five days of the Petition Date
seeking to establish procedures for a sale of substantially all
assets, including those related to Pleasant Valley and Claflin.
Within the next 30 days, the Debtors further intend topropsoe a
Chapter 11 plan for distribution of the proceeds generated by the
sale.

                       About Tri-Valley

Tri-Valley Corporation (OTQCB: TVLY) --
http://www.tri-valleycorp.com/-- explores for and produces oil
and natural gas in California and has two exploration-stage gold
properties in Alaska.

K&L Gates LLP serves as bankruptcy counsel.  Attorneys at Landis
Rath & Cobb LLP serve as Delaware and conflicts counsel.  The
Debtors have tapped Epiq Bankruptcy Solutions, LLC, as claims
agent.


TRIUS THERAPEUTICS: Incurs $14.4-Mil. Net Loss in Second Quarter
----------------------------------------------------------------
Trius Therapeutics, Inc., reported a net loss of $14.41 million on
$6.22 million of total revenues for the three months ended
June 30, 2012, compared with a net loss of $9.98 million on $2.85
million of total revenues for the same period a year ago.

The Company reported a net loss of $22.01 million on $16.05
million of total revenues for the six months ended June 30, 2012,
compared with a net loss of $20.05 million on $5.57 million of
total revenues for the the same period during the prior year.

The Company's balance sheet at June 30, 2012, showed $94.76
million in total assets, $16.56 million in total liabilities and
$78.20 million in total stockholders' equity.

A copy of the press release is available for free at:

                       http://is.gd/Cqa3ph

                     About Trius Therapeutics

San Diego, Calif.-based Trius Therapeutics, Inc. (Nasdaq: TSRX) --
http://www.triusrx.com/-- is a biopharmaceutical company focused
on the discovery, development and commercialization of innovative
antibiotics for serious, life-threatening infections.  The
Company's first product candidate, torezolid phosphate, is an IV
and orally administered second generation oxazolidinone being
developed for the treatment of serious gram-positive infections,
including those caused by MRSA.  In addition to the company's
torezolid phosphate clinical program, it is currently conducting
two preclinical programs using its proprietary discovery platform
to develop antibiotics to treat infections caused by gram-negative
bacteria.

In the Form 10-K for the year ended Dec. 31, 2011, the Company
said it has incurred losses since its inception and it anticipates
that it will continue to incur losses for the foreseeable future.
As of December 31, 2011, the Company had an accumulated deficit of
$95.4 million.  The Company has funded, and plan to continue to
fund, its operations from the sale of securities, through research
funding and from collaboration and license payments, including
payments under the Bayer collaboration.  However, the Company has
generated no revenues from product sales to date.

The Company reported a net loss of $18.25 million in 2011, a net
loss of $23.86 million in 2010, and a net loss of
$22.68 million in 2009.


TRONOX INC: Shareholders Suit Settled Against Kerr-McGee
--------------------------------------------------------
Tronox Inc. shareholders are asking a New York federal judge to
grant preliminary approval of a settlement of a multidistrict
litigation against Kerr-McGee Corp. and its former auditor Ernst &
Young LLP

According to Bankruptcy Law360, the deal would require a
$2 million payment by Ernst & Young and a $35 million payment by
Kerr-McGee, its parent company Anadarko Petroleum Corp. and
several former executives.

Bill Rochelle, the bankruptcy columnist at Bloomberg News, reports
that filed in 2009, the shareholders' suit alleged that Tronox
Inc. shareholders were defrauded when the company was spun off in
2005 from then-parent Kerr-McGee, which was later acquired by
Anadarko.

The Bloomberg report disclosed the shareholder suit is separate
from the lawsuit currently on trial in U.S. Bankruptcy Court in
Manhattan, where Tronox and the U.S. government are attempting to
prove that Kerr-McGee should be held liable for billions of
dollars in environmental liabilities.

A recess in the trial to permit settlement talks failed.  The
trial recommenced in late July. Kerr-McGee is now presenting
witnesses in defense.  The bankruptcy judge is trying the case
without a jury.

The lawsuit in district court being settled is In re Tronox Inc.
Securities Litigation, 09-cv-6220, U.S. District Court, Southern
District of New York (Manhattan).  The lawsuit in bankruptcy court
is Tronox Inc. v. Anadarko Petroleum Corp. (In re Tronox Inc.),
09-1198, U.S. Bankruptcy Court, Southern District of New York
(Manhattan).

                       About Tronox Inc.

Tronox Inc., aka New-Co Chemical, Inc., and 14 other affiliates
filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 09-
10156) on Jan. 13, 2009, before Hon. Allan L. Gropper.  Richard M.
Cieri, Esq., Jonathan S. Henes, Esq., and Colin M. Adams, Esq., at
Kirkland & Ellis LLP in New York, represented the Debtors.  The
Debtors also tapped Togut, Segal & Segal LLP as conflicts counsel;
Rothschild Inc. as investment bankers; Alvarez & Marsal North
America LLC, as restructuring consultants; and Kurtzman Carson
Consultants served as notice and claims agent.

An official committee of unsecured creditors and an official
committee of equity security holders were appointed in the cases.
The Creditors Committee retained Paul, Weiss, Rifkind, Wharton &
Garrison LLP as counsel.

Until Sept. 30, 2008, Tronox was publicly traded on the New
York Stock Exchange under the symbols TRX and TRX.B.  Since then,
Tronox has traded on the Over the Counter Bulletin Board under the
symbols TROX.A.PK and TROX.B.PK.  As of Dec. 31, 2008, Tronox
had 19,107,367 outstanding shares of class A common stock and
22,889,431 outstanding shares of class B common stock.

On Nov. 17, 2010, the Bankruptcy Court confirmed the Debtors'
First Amended Joint Plan of Reorganization under Chapter 11 of the
Bankruptcy Code, dated Nov. 5, 2010.  Under the Plan, Tronox
reorganized around its existing operating businesses, including
its facilities at Oklahoma City, Oklahoma; Hamilton, Mississippi;
Henderson, Nevada; Botlek, The Netherlands and Kwinana, Australia.


VERENIUM CORP: Incurs $2.5 Million Net Loss in Second Quarter
-------------------------------------------------------------
Verenium Corporation reported a net loss attributable to the
Company of $2.47 million on $15.69 million of total revenue for
the three months ended June 30, 2012, compared with a net loss
attributable to the Company of $1.46 million on $15.13 million of
total revenue for the same period during the prior year.

The Company reported net income attributable to the Company of
$27.64 million on $32.92 million of total revenue for the six
months ended June 30, 2012, compared with net income attributable
to the Company of $2.34 million on $28.53 million of total revenue
for the same period a year ago.

The Company's balance sheet at June 30, 2012, showed $52.31
million in total assets, $13.83 million in total liabilities and
$38.47 million in stockholders' equity.

"The first half of the year proved to be an important turning
point for Verenium," said James Levine, President & Chief
Executive Officer at Verenium.  "With the recent move into our new
facility completed and our debt repaid, we are focused on growing
our business through the sales of our current marketed products,
developing our product pipeline, and establishing future
collaborations and partnerships."

A copy of the press release is available for free at:

                     http://is.gd/pBqMMc

                  About Verenium Corporation

Cambridge, Mass.-based Verenium Corporation (NASDAQ: VRNM) --
http://www.verenium.com/-- is a pioneer in the development and
commercialization of high-performance enzymes for use in
industrial processes.  Verenium currently sells enzymes developed
using its R&D capabilities to industrial customers globally for
use in markets including biofuels, animal health and oil seed
processing.

The Company reported net income of $5.12 million in 2011 compared
with a net loss of $5.35 million in 2010.

                           Going Concern

The Company had a loss from operations of $6.5 million for year
ended Dec. 31, 2011, and had an accumulated deficit of $600.8
million as of Dec. 31, 2011.  The holders of the 2007 Notes have
the right to require the Company to purchase the 2007 Notes for a
total cash amount equal to $34.9 million on April 2, 2012, plus
accrued and unpaid interest to that date.  The Company expects the
holders of the 2007 Notes to exercise this right and, based on the
Company's current cash resources and 2012 operating plan, the
Company's existing cash resources will not be sufficient to meet
the cash requirements to fund the Company's required repurchase of
the 2007 Notes, planned operating expenses, capital expenditures
and working capital requirements without additional sources of
cash.

If the Company is unable to fund the repurchase of the 2007 Notes
when required or otherwise raise additional capital, the Company
will need to defer, reduce or eliminate significant planned
expenditures, restructure or significantly curtail the Company?s
operations, sell some or all its assets, file for bankruptcy or
cease operations.

To the extent the Company restructures rather than repurchases all
or any portion of the 2007 Notes, the Company may issue common
shares or other convertible debt for the 2007 Notes that are
restructured, which would result in substantial dilution to the
Company's equityholders.  There can be no assurance that the
Company will be able to obtain any sources of financing on
acceptable terms, or at all.

These factors raise substantial doubt about the Company's ability
to continue as a going concern.


VIRANI & MANAV: Case Summary & 12 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Virani & Manav LLC
        a Texas Limited Liability Company
        dba Knights Inn
        9638 Plainfield Street
        Houston, TX 77036

Bankruptcy Case No.: 12-35882

Chapter 11 Petition Date: August 6, 2012

Court: United States Bankruptcy Court
       Southern District of Texas (Houston)

Judge: Karen K. Brown

Debtor's Counsel: Karen R. Emmott, Esq.
                  4615 Southwest Freeway
                  Suite 500
                  Houston, TX 77027
                  Tel: (713) 739-0008
                  Fax: (713) 481-6262
                  E-mail: karen.emmott@sbcglobal.net

Scheduled Assets: $1,200,000

Scheduled Liabilities: $2,289,529

A copy of the Company's list of its 12 largest unsecured creditors
is available for free at http://bankrupt.com/misc/txsb12-35882.pdf

The petition was signed by Rajan Patel, managing member.


WATSON VENTURES: Case Summary & 4 Unsecured Creditors
-----------------------------------------------------
Debtor: Watson Ventures, LLC
        3185 Longview Drive
        Sacramento, CA 95821

Bankruptcy Case No.: 12-34203

Chapter 11 Petition Date: August 1, 2012

Court: U.S. Bankruptcy Court
       Eastern District of California (Sacramento)

Judge: Christopher M. Klein

Debtor's Counsel: W. Steven Shumway, Esq.
                  2140 Professional Drive, #240
                  Roseville, CA 95661
                  Tel: (916) 789-8821

Scheduled Assets: $1,358,600

Scheduled Liabilities: $2,364,995

A copy of the Company's list of its four unsecured creditors filed
with the petition is available for free at:
http://bankrupt.com/misc/caeb12-34203.pdf

The petition was signed by Greg Watson, managing member.


WHOLE FOODS: S&P Raises Corporate Credit Rating From 'BB+'
----------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating on Austin, Texas-based Whole Foods Market Inc. to 'BBB-'
from 'BB+'. The outlook is stable.

"The rating action comes after Whole Foods' strong operating
trends. Its EBITDA growth over the past year of about 21% has been
somewhat better than we anticipated and has enhanced credit
protection measures meaningfully," S&P said.

"Given our operating forecast, we anticipate further improvement,"
said Standard & Poor's credit analyst Charles Pinson-Rose.
"Moreover, the company has generated significant discretionary
cash flow, and it now has sizable excess cash. With expected
capital expenditures and likely dividend payments, we foresee
Whole Foods generating further excess cash in the future."

"The rating on Whole Foods reflects our assessment of its business
risk as 'satisfactory,' which incorporates the company's strong
position as the leader in the organic and natural food retailing
sector, and our expectation that it will continue to outperform
traditional grocery stores in the near and intermediate term. We
also revised our assessment of Whole Foods' financial risk to
'intermediate' from 'significant.' This is based on the company's
strong cash flow generation and forecasted credit ratios," S&P
said.

"The company's third-quarter results were slightly better than our
expectations and meaningfully better than traditional grocery
stores. Although we expect tepid economic expansion and sustained
high unemployment, we believe such conditions will not inhibit
performance at Whole Foods, since the natural and organic segment
industry is growing considerably faster than the food retail
industry as a whole. Furthermore, the company's pricing,
promotional, and merchandising strategies have driven transactions
and customer loyalty. Consequently, we believe the company is now
less vulnerable to downturns in consumer spending," S&P said.

"Our stable rating outlook on Whole Foods incorporates our
expectations that the overall sales and profit growth trends
should be strong in the near term. Nonetheless, we expect credit
ratios to remain appropriate for our current financial risk
assessment and rating category," S&P said.

"If the company performs better than we anticipate, we would
consider a higher rating. For example, if debt to EBITDA was in
the low-2x area and FFO/debt was in the 30% range, we may consider
a higher rating. We estimate this could occur in 2013 if EBITDA
grew around 27%-29% and would track toward $1.4 billion, while
operating lease commitments only grew 7%-8%. However, we would
want to be sure that the company's financial policies would be
such that future capital allocations would ensure that the company
maintains credit ratios near those levels and liquidity remained
adequate," S&P said.

"Given the company's performance trends, we do not consider a
downgrade as likely in the near term. However, we may consider a
lower rating if the company adopts more aggressive financial
policies and adds funded debt to finance returns to shareholder or
acquisitions. However, we do not view either as likely. If
leverage rises above 3x, we may consider a lower rating. With
our estimated profitability and debt levels at the end of 2012,
Whole Foods could increase debt by $500 million and be near that
threshold," S&P said.


WILTON HOLDINGS: S&P Assigns 'B' Corp. Credit Rating
----------------------------------------------------
Standard & Poor's Ratings Services ssigned its 'B' corporate
credit rating to Woodridge, Ill.-based Wilton Holdings Inc. "At
the same time, we assigned our 'B' issue-level rating to primary
operating company subsidiary Wilton Brands LLC's proposed $400
million senior secured term loan due 2019. The recovery rating
is '3', indicating our expectation that lenders would receive
meaningful (50% to 70%) recovery in the event of payment default.
For analytical purposes, we view Wilton and its other holding
companies, including Cupcake Holdings LLC (Cupcake - not rated)
and its operating subsidiaries, including Wilton Brands LLC, as
one economic entity. The transaction is expected to close before
Sept. 1, 2012. Our ratings are based on preliminary terms and
documentation and could change based on final documents," S&P
said.

The rating outlook is stable. The amount of adjusted debt pro
forma for the proposed refinancing is about $1 billion.

"The ratings on Wilton Holdings Inc. reflect our view that the
company's financial risk profile is 'highly leveraged' and that
the business risk profile is 'vulnerable.' Wilton's highly
leveraged financial risk profile reflects its weak credit metrics
and our belief that it has an aggressive financial policy," said
Standard & Poor's credit analyst Stephanie Harter. "The company is
proposing to refinance its currently highly leveraged capital
structure with new debt consisting of a $125 million asset-based
lending (ABL) revolver due 2017 (not rated), a $400 million senior
secured term loan due 2019, and $340 million of unsecured
subordinated holding company debt due 2020 (to be issued at Wilton
Sub Holdings Inc. - not rated). Wilton's vulnerable business risk
profile reflects our view that the company participates in a
competitive and highly fragmented industry, which has low
barriers-to-entry and a narrow product and customer focus. We
believe the company's products are also vulnerable to changes in
consumer tastes and cutbacks in discretionary spending."

"Wilton is very highly leveraged and will remain so after the
refinancing. Pro forma for the refinancing and the last 12 months
June 30, 2012 adjusted EBITDA, we estimate leverage to be very
high at about 8x. Our leverage calculation includes the preferred
equity units for Wilton's owners, which we treat as 100% debt in
our financial ratios. These units are held at holding company
parent, Cupcake Holdings LLC, which is largely owned and
controlled by financial sponsor TowerBrook Capital Partners. We
generally view the paid-in-kind (PIK) feature and the lack of a
maturity date for these units as ineligible for 'equity-content'
in this context because we view the deferability of payments
feature to be most beneficial when that flexibility is reserved
for periods of financial distress. Excluding the preferred equity
units, we estimate total leverage under the proposed capital
structure would still be high at about 6x, including holding
company subordinated debt. We expect leverage to improve only
slightly over the next 12 months as the company is not subject to
a full-years' worth of debt amortization, and we expect minimal
adjusted EBITDA growth in 2012. The company could use excess cash
for debt prepayment beyond the requirements under the proposed
credit agreement, acquisitions, or further product development. We
understand that the proposed credit agreement would restrict
dividend payments. Cash flow protection measures are also very
weak, with our estimate of pro forma adjusted funds from
operations (FFO) to adjusted total debt of about 7% at closing.
Excluding the preferred equity units, FFO to adjusted total debt
would be just under 10% at closing. These pro forma metrics, both
including and excluding the preferred equity units, are within
ranges for our indicative ratios of a highly leveraged financial
risk profile of greater than 5x leverage and FFO-to-adjusted total
debt of less than 12%. Given the company's significant debt
burden, we expect cash flow protection measures to only improve
slowly over the next one to two years absent debt prepayment," S&P
said.

"Wilton, with $675 million of total 2011 sales, is estimated to be
the largest food and paper crafting company in the highly
fragmented $30 billion crafts industry. Wilton Enterprises, the
cake decorating division, accounts for about two-thirds of sales,
with EK Success Brands, the crafts business, accounting for the
remaining one-third of revenues. Wilton's products are sold under
brands such as Wilton, Copco, EK Success, K&Company, Jolee's and
through licensing agreements. The company holds a leading share in
the niche cake decorating and bakeware categories, as well as in
numerous arts and crafts categories. Although the company does not
compete against other large players, it is our opinion that
barriers to market entry are low, characterized by low capital
expenditures requirements, which could lead to ongoing pressure
from private label entrants. We believe the company's narrow
product focus leaves it vulnerable to changes in consumer tastes.
In addition, Wilton is exposed to customer concentration as its
top 10 customers accounted for nearly 70% of 2011 net sales. Given
the high level of customer concentration, we believe the loss of
any key customer would be detrimental to Wilton's operations," S&P
said.

"While we believe that Wilton's products exhibit strong demand,
including its online and in-person classroom educational programs,
we view the company's products as discretionary purchases and
subject to changes in consumer tastes as well as the overall
economy's performance. However, sales have grown steadily during
the past several quarters after experiencing further pressure from
the end of 2010 into 2011, and the company's emergence from
default following a restructuring in October 2009. Despite these
headwinds, the company has managed to maintain double-digit EBITDA
margins during the past several quarters. We expect that EBITDA
margins could erode in the near term despite the company's ability
to increase its prices to help offset higher costs for fuel,
plastics, and sugar. We believe that the company is acquisitive
and is also seeking to increase its international operations.
Although expanding its product offerings and geographical
footprint would provide Wilton with good growth prospects, the
costs associated with these opportunities could negatively affect
margins," S&P said.

S&P expects Wilton's adjusted credit measures to decline slightly
over 2012 as the PIK accretion on the holding company subordinated
debt and preferred equity will outpace any debt amortization on
the term loan. However, S&P expects credit metrics to improve in
2013 as the company uses excess cash flow to prepay debt.  S&P's
base-case scenario assumptions include:

- Low-single-digit revenue growth from a full-year contribution
   from increased shelf space at existing customers, new
   products, and further entry into the grocery store channel;

- Margins to remain near current levels;

- No acquisitions over the next 12 months; and

- Term loan debt reduction from free operating cash flow (FOCF)
   over the next 12 to 18 months; we estimate the company's FOCF
   to be more than $40 million and $50 million for 2012 and 2013.

"Based on these assumptions, we estimate credit measures will
increase slightly to just below 9x at fiscal year end 2012 due to
PIK accretion outpacing term loan debt amortization. We also
estimate FFO-to-total adjusted debt of about 4% at fiscal year-end
2012. We expect these measures to improve over 2013 to approaching
8x and 4.5%, respectively, from term loan debt repayment," S&P
said.

"The stable outlook reflects our expectation that the company will
maintain its strong market positions and improved operating
performance during the near term despite the current weak economic
environment. In addition, in order to maintain current ratings
with a stable outlook, we expect the company to slowly reduce
leverage during the next 12 months. We could consider a downgrade
if the company's operating results weaken due to declines in
consumer spending, from constrained liquidity, or if covenant
cushion under the new credit agreement falls below 15%. For this
to occur, we estimate adjusted EBITDA would need to decline more
than 15% (assuming debt levels do not significantly change from
pro forma levels). An upgrade is not likely during the next year,
given the company's highly leveraged capital structure," S&P said.


WINDMILL INVESTMENT: Case Summary & 4 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Windmill Investment Group, Inc.
        402 E. Amman Road
        Bulverde, TX 78163

Bankruptcy Case No.: 12-52430

Chapter 11 Petition Date: August 6, 2012

Court: United States Bankruptcy Court
       Western District of Texas (San Antonio)

Judge: Leif M. Clark

Debtor's Counsel: Dean William Greer, Esq.
                  2929 Mossrock, Suite 117
                  San Antonio, TX 78230
                  Tel: (210) 342-7100
                  Fax: (210) 342-3633
                  E-mail: dwgreer@sbcglobal.net

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $1,000,001 to $10,000,000

A copy of the Company's list of its four largest unsecured
creditors filed together with the petition is available for free
at http://bankrupt.com/misc/txwb12-52430.pdf

The petition was signed by Walter C. Windsor, president.


WOOTON GROUP: Hires M. Jonathan Hayes as Bankruptcy Counsel
-----------------------------------------------------------
Wooton Group, LLC, asks for permission from the U.S. Bankruptcy
Court to employ M. Jonathan Hayes as its general bankruptcy
counsel.

The firm will provide various services, including:

   a. preparation of the schedules and the additional forms
      required to begin the bankruptcy case;

   b. advice and assistance regarding compliance with the
      requirements of the United States Trustee; and

   c. advice regarding matters of bankruptcy law, including the
      rights and remedies of the Debtor in regard to its assets
      and with respect to the claims of creditors.

The firm's hourly rates are:

  Professional                      Rates
  ------------                      -----
  M. Jonathan Hayes             $385 per hour
  Roksana Moradi                $265 per hour
  Carolyn Afari                 $165 per hour

M. Jonathan Hayes, Esq., a partner at the firm, attests that the
firm is a "disinterested person" as the term is defined in Section
101(14) of the Bankruptcy Code.

                        About Wooton Group

Beverly Hills, California-based Wooton Group LLC owns properties
in Stockton and Fresno, California.  Wooton Group filed a bare-
bones Chapter 11 petition (Bankr. C.D. Calif. Case No. 12-31323)
in Los Angeles on June 19, 2012.  The Debtor estimated assets of
up to $50 million and liabilities of up to $10 million.


WOOTON GROUP: Files Schedules of Assets and Liabilities
-------------------------------------------------------
Wooton Group, LLC, filed with the Bankruptcy Court for the Central
District of California its schedules of assets and liabilities,
disclosing:

     Name of Schedule              Assets         Liabilities
     ----------------            -----------      -----------
  A. Real Property               $10,500,000
  B. Personal Property                  $961
  C. Property Claimed as
     Exempt
  D. Creditors Holding
     Secured Claims                                $7,186,885
  E. Creditors Holding
     Unsecured Priority
     Claims                                                $0
  F. Creditors Holding
     Unsecured Non-priority
     Claims                                           $37,491
                                 -----------      -----------
        TOTAL                    $10,500,961       $7,227,376

                        About Wooton Group

Beverly Hills, California-based Wooton Group LLC owns properties
in Stockton and Fresno, California.  Wooton Group filed a bare-
bones Chapter 11 petition (Bankr. C.D. Calif. Case No. 12-31323)
in Los Angeles on June 19, 2012.  The Debtor estimated assets of
up to $50 million and liabilities of up to $10 million.  The Law
Office of M Jonathan Hayes, in Northridge, serves as counsel.


ZIMCAL CORPORATION: Voluntary Chapter 11 Case Summary
-----------------------------------------------------
Debtor: Zimcal Corporation
        5353 Alpha Road, Suite 200
        Dallas, TX 75240

Bankruptcy Case No.: 12-42104

Chapter 11 Petition Date: August 6, 2012

Court: United States Bankruptcy Court
       Eastern District of Texas (Sherman)

Judge: Brenda T. Rhoades

Debtor's Counsel: Joyce W. Lindauer, Esq.
                  8140 Walnut Hill Lane
                  Suite 301
                  Dallas, TX 75231
                  Tel: (972) 503-4033
                  Fax: (972) 503-4034
                  E-mail: courts@joycelindauer.com

Estimated Assets: $1,000,001 to $10,000,000

Estimated Debts: $500,001 to $1,000,000

The Debtor did not file a list of its largest unsecured creditors
together with its petition.

The petition was signed by Harold Baeck, president.

Affiliate that filed separate Chapter 11 petition:

                                                 Petition
   Debtor                              Case No.     Date
   ------                              --------     ----
Janlaw Properties, Inc.                12-42102   08/06/12


* Eviction Warrant Alone Doesn't Terminate Lease
------------------------------------------------
Bill Rochelle, the bankruptcy columnist at Bloomberg News, reports
that the U.S. Court of Appeals in Manhattan ruled on Aug. 2 that
if a landlord obtains a warrant of eviction and the warrant wasn't
carried out before bankruptcy, the lease hadn't expired under New
York law.

According to the report, concluding that the lease hadn't expired
satisfied one of the requirements entitling the landlord to a
claim for rent accruing during the bankruptcy case before the
eviction warrant was executed, Circuit Judge Guido Calabresi ruled
for the three judge panel, in overturning rulings by the
bankruptcy court and the district court.  Both lower courts
believed that the eviction warrant by itself terminated the lease.

The report relates Judge Calabresi said the case turned on Section
749(3) of the New York Real Property Actions & Proceedings Law,
which says that an eviction warrant terminates the landlord-tenant
relationship.  However, the section also says that the court has
power to vacate the eviction warrant before execution.  Judge
Calabresi concluded that the ability to vacate the warrant gives
the tenant a "residual interest in the lease" until execution.
Consequently, the lease hadn't expired, he said.

Mr. Rochelle notes that finding that the lease hadn't expired
didn't answer the question of whether the landlord was entitled to
post-bankruptcy rent.  The judge sent the case back to bankruptcy
court for a determination of whether the lease nonetheless should
be deemed to have been rejected, thus cutting off the landlord's
right to payment of rent under Section 365(d)(3).

The Bloomberg report disclosed Judge Calabresi said the issue
hadn't been briefed or argued.  Before deciding the novel issue,
Judge Calabresi said he wanted the "bankruptcy court' specialized
knowledge."  The case is Super Nova 330 LLC v. Gazes, 11-1773,
U.S. 2nd Circuit Court of Appeals (Manhattan).


* Circuit Court Clarifies Procedures for Recoupment
---------------------------------------------------
Bill Rochelle, the bankruptcy columnist at Bloomberg News, reports
that the U.S. Court of Appeals in St. Louis ruled Aug. 3 that
there is no separate "balancing-of-the-equities" test in deciding
whether a creditor is entitled to invoke the recoupment doctrine.
According to the report, the opinion by Circuit Judge Duane Benton
coincides with a 2005 case from the U.S. Court of Appeals in
Boston reaching the same result.  The case involved an individual
eligible for disability payments from both Social Security and a
private insurance policy.  The case is Terry v. Standard Insurance
Co. (In re Terry), 11-2582, U.S. 8th Circuit Court of Appeals (St.
Louis).


* Student Loan Debt Must Be Paid Like Other Claims
--------------------------------------------------
Bill Rochelle, the bankruptcy columnist at Bloomberg News, reports
that U.S. District Judge Leonie M. Brinkema in Alexandria,
Virginia, ruled on Aug. 1 that student loan debt must be paid like
other claims paying a larger percentage of unsecured debt on a
nondischargeable student loan amounts to unfair discrimination
barring confirmation of a Chapter 13 plan.  The case is Gorman v.
Birts (In re Birts), 12-427, U.S. District Court Eastern District
Virginia (Alexandria).


* Moody's Sees High Refinancing Risk for Low-Rated Debt Issuers
---------------------------------------------------------------
The 2012-2016 debt maturities of the 25 companies rated B3 with a
negative outlook or lower identified in Moody's January refunding
report total around $74 billion, as of May 31. That's down
slightly from $81 billion reported in January (which reflected
debt maturities as of November 15, 2011), says Moody's Investors
Service in a new special comment "Refinancing Risk Remains High
for Large US Debt Issuers With Weak Ratings."

The decrease in maturities primarily reflects the withdrawal from
the current list of two companies that filed for bankruptcy
protection this year. Without these companies, the maturities as
of May were little changed from November.

The report is not the current list of the largest debt issuers
rated B3 or lower. Rather it is an update of the 25 largest debt
issuers identified in Moody's January report.

Of the 25 companies identified in January, two - Houghton Mifflin
and Hawker Beechcraft - filed for bankruptcy protection, five
received an credit-rating upgrade, two received a two-notch
downgrade and one, R.H. Donnelly, had a three-notch downgrade in
connection with a distressed exchange in March 2012. In addition,
seven companies had rating-outlook changes, with the majority
being positive moves.

"We believe sovereign-debt problems in Europe and the threat of
global economic contagion represent some of the biggest
refinancing risks and could disrupt both lending appetite and
bond-market access just when high-yield companies need market
access," said Kevin Cassidy, a Moody's Senior Credit Officer and
author of the report

Only six companies had less debt in May than in November. Only one
company still has a 2012 maturity, but 10 companies will have to
address 2013 maturities. "That some companies haven't taken
advantage of the favorable market conditions and refinanced beyond
2016 may present an increasing liquidity risk given growing global
economic uncertainties," noted Cassidy.

"We believe many of these companies will need to restructure their
debt, especially if their capital structures are untenable and if
business fundamentals do not improve," Cassidy said.

The largest B3 negative or lower debt issuers are Clear Channel
Communications with more than $14 billion of debt due over the
next four years, Texas Competitive Electric Holdings with almost
$13 billion and Caesars Entertainment with over $9 billion due.


* Moody's Sees High Re-Default Risk After Distressed Exchanges
--------------------------------------------------------------
Historical evidence shows that the risk of re-default tends to
remain high after sovereign distressed exchanges, Moody's
Investors Service says in a new report that analyzes the modern
history of sovereign bond defaults and the haircuts imposed on
investors.

The new report, entitled "Sovereign Defaults Series: Investor
Losses in Modern-Era Sovereign Bond Restructurings," is available
on http://www.moodys.com/

"Thirty-seven percent of the 30 sovereign debt exchanges since
1997 were followed by further default events," explains Elena
Duggar, Moody's Group Credit Officer for Sovereign Risk and author
of the report. "These high rates of re-default after a distressed
exchange in the sovereign sector are similar to the experience in
the global corporate sector and explain why ratings often remain
low, in the Caa-C rating range, following distressed exchanges."

Since 1997, there have been 30 distressed exchanges on sovereign
bonds, by 22 sovereign issuers. Moody's new report pinpoints four
key findings:

(1) The average haircut experienced by investors in sovereign
restructurings was 47%, comparable to the average loss experienced
in the global corporate sector. The standard deviation around the
average was large at 26%, with losses varying from 5% to 95%.

(2) Sovereign bond defaults typically started as a missed payment
and involved a sequence of default events before being resolved
via a distressed exchange. When the initial debt exchanges were
small in relation to total debt, they were followed by further
exchanges of private or official debt, even when haircuts in the
initial exchange were large.

(3) Maturity extension was a much more common feature of
restructurings than imposing nominal haircuts on the principal:
the terms of the restructurings for all but one exchange included
maturity extension, 81% involved reduction in interest rates,
while 48% involved haircuts on the principal.

(4) The loss experienced in sovereign bond restructurings was
somewhat correlated with the country's debt-to-GDP ratio. In
addition, losses have depended on the economic conditions in each
country at the time of default, the features of the bond
contracts, and on the dynamics of the debt-restructuring
negotiations.


* Bankruptcy Filings Fall 12 Percent in July 2012
-------------------------------------------------
American Bankruptcy Institute reports that total bankruptcy
filings in the United States for July 2012 decreased 12 percent
compared to the previous year, according to data provided by Epiq
Systems, Inc.


* Recent Small-Dollar & Individual Chapter 11 Filings
-----------------------------------------------------

In re Next Level FP LLC
   Bankr. D. Ariz. Case No. 12-17086
     Chapter 11 Petition filed July 31, 2012
         Filed as Pro Se

In re Jeffery Khoner
   Bankr. D. Ariz. Case No. 12-17113
      Chapter 11 Petition filed July 31, 2012

In re Jerry Strebig
   Bankr. D. Ariz. Case No. 12-17151
      Chapter 11 Petition filed July 31, 2012

In re Alfred Valverde
   Bankr. N.D. Calif. Case No. 12-46359
      Chapter 11 Petition filed July 31, 2012

In re Raymond Jackson
   Bankr. N.D. Calif. Case No. 12-55661
      Chapter 11 Petition filed July 31, 2012

In re New London Transmissions Corp.
        dba Aamco Transmissions
            New London Transmissions
   Bankr. D. Conn. Case No. 12-21864
     Chapter 11 Petition filed July 31, 2012
         See http://bankrupt.com/misc/ctb12-21864.pdf
         represented by: Peter L. Ressler, Esq.
                         GROOB RESSLER & MULQUEEN
                         E-mail: ressmul@yahoo.com

In re Edward Quinlisk
   Bankr. N.D. Ill. Case No. 12-30587
      Chapter 11 Petition filed July 31, 2012

In re Tarheel Forming Company, Inc.
        dba Tarheel Form and Rebar
   Bankr. E.D.N.C. Case No. 12-05495
     Chapter 11 Petition filed July 31, 2012
         See http://bankrupt.com/misc/nceb12-05495.pdf
         represented by: Danny Bradford, Esq.
                         PAUL D. BRADFORD, PLLC
                         E-mail: dbradford@bradford-law.com

In re Tanaroji Ventures, LLC
   Bankr. E.D.N.C. Case No. 12-05496
     Chapter 11 Petition filed July 31, 2012
         See http://bankrupt.com/misc/nceb12-05496.pdf
         represented by: William P. Janvier, Esq.
                         JANVIER LAW FIRM, PLLC
                         E-mail: bill@janvierlaw.com

In re Top Floor, LLC
   Bankr. E.D.N.C. Case No. 12-05523
     Chapter 11 Petition filed July 31, 2012
         See http://bankrupt.com/misc/nceb12-05523.pdf
         represented by: William P. Janvier, Esq.
                         JANVIER LAW FIRM, PLLC
                         E-mail: bill@janvierlaw.com

In re Eduardo Ruberte Huertas
   Bankr. D.P.R. Case No. 12-06040
      Chapter 11 Petition filed July 31, 2012

In re MM Interests LLC
   Bankr. E.D. Tex. Case No. 12-10476
     Chapter 11 Petition filed July 31, 2012
         See http://bankrupt.com/misc/txeb12-10476p.pdf
         See http://bankrupt.com/misc/txeb12-10476c.pdf
         represented by: Tagnia Fontana Clark
                         MAIDA LAW FIRM, P.C.
                         E-mail: maidalawfirm@gt.rr.com

In re Kilpatrick, Luster & Co. CPA, PLLC
        aka Kilpatrick & Co., CPA, PLLC
   Bankr. D. Ariz. Case No. 12-17264
     Chapter 11 Petition filed August 1, 2012
         See http://bankrupt.com/misc/azb12-17264.pdf
         represented by: Harold E. Campbell, Esq.
                         Campbell & Coombs, P.C.
                         E-mail: heciii@haroldcampbell.com

In re Ralph Hernandez
   Bankr. C.D. Calif. Case No. 12-28015
      Chapter 11 Petition filed August 1, 2012

In re Robert Jimerson
   Bankr. M.D. Fla. Case No. 12-11907
      Chapter 11 Petition filed August 1, 2012

In re In The Zone Health and Fitness, LLC
   Bankr. N.D. Ill. Case No. 12-30769
     Chapter 11 Petition filed August 1, 2012
         See http://bankrupt.com/misc/ilnb12-30769.pdf
         represented by: Mark L Radtke, Esq.
                         Shaw Gussis Fishman Glantz, etal
                         E-mail: mradtke@shawgussis.com

In re Play Soccer Chicago LLC
        dba Sports Zone
   Bankr. N.D. Ill. Case No. 12-30760
     Chapter 11 Petition filed August 1, 2012
         See http://bankrupt.com/misc/ilnb12-30760.pdf
         represented by: Mark L Radtke, Esq.
                         Shaw Gussis Fishman Glantz, etal
                         E-mail: mradtke@shawgussis.com

In re Tap in Cafe LLC
        dba Warehouse Event Center
   Bankr. N.D. Ill. Case No. 12-30764
     Chapter 11 Petition filed August 1, 2012
         See http://bankrupt.com/misc/ilnb12-30764.pdf
         represented by: Mark L Radtke, Esq.
                         Shaw Gussis Fishman Glantz, etal
                         E-mail: mradtke@shawgussis.com

In re Melba Schwegmann Brown
   Bankr. E.D. La. Case No. 12-12300
      Chapter 11 Petition filed August 1, 2012

In re Arvinder Bahal
   Bankr. D. Mass. Case No. 12-16460
      Chapter 11 Petition filed August 1, 2012

In re Lifeline, Inc.
   Bankr. D. Md. Case No. 12-24222
     Chapter 11 Petition filed August 1, 2012
         See http://bankrupt.com/misc/mdb12-24222.pdf
         represented by: Jeffrey M. Sirody, Esq.
                         Sirody, Freiman & Associates, P.C.
                         E-mail: smeyers5@hotmail.com

In re Myownbiz, LLC
   Bankr. D. Md. Case No. 12-24234
     Chapter 11 Petition filed August 1, 2012
         See http://bankrupt.com/misc/mdb12-24234.pdf
         represented by: Terry Morris, Esq.
                         Morris Palerm, LLC
                         E-mail: tmorris@morrispalerm.com

In re Randy Brown Landscape, Inc.
        aka Randy Brown Landscaping, Inc.
   Bankr. E.D. Mich. Case No. 12-57853
     Chapter 11 Petition filed August 1, 2012
         See http://bankrupt.com/misc/mieb12-57853p.pdf
         See http://bankrupt.com/misc/mieb12-57853c.pdf
         represented by: Kimberly Ross Clayson, Esq.
                         Schneider Miller, PC
                         E-mail: kclayson@schneidermiller.com

In re Chad Messersmith
   Bankr. D. Nebr. Case No. 12-41670
      Chapter 11 Petition filed August 1, 2012

In re Risk Assessment & Management, Inc.
   Bankr. D. Nebr. Case No. 12-41671
     Chapter 11 Petition filed August 1, 2012
         See http://bankrupt.com/misc/neb12-41671p.pdf
         See http://bankrupt.com/misc/neb12-41671c.pdf
         represented by: Galen E. Stehlik, Esq.
                         Lauritsen, Brownell, Brostrom, Stehlik
                         E-mail: galens@lauritsenlaw.com

In re Louis Pinto
   Bankr. D. Nev. Case No. 12-19009
      Chapter 11 Petition filed August 1, 2012

In re Nostrand Wines & Liq Nostrand Wines & Liquors Inc.
   Bankr. E.D.N.Y. Case No. 12-45649
     Chapter 11 Petition filed August 1, 2012
         See http://bankrupt.com/misc/nyeb12-45649.pdf
         represented by: Morse Geller, Esq.
                         Law Office of Morse Geller
                         E-mail: mgadv1@aol.com

In re Driton LLC
        dba Nino's Restaurant
   Bankr. S.D.N.Y. Case No. 12-13304
     Chapter 11 Petition filed August 1, 2012
         See http://bankrupt.com/misc/nysb12-13304.pdf
         represented by: Salvatore J. Liga, Esq.
                         The Liga Law Group, P.C.
                         E-mail: sliga@ligalaw.com

   In re 301 E. 47th St. Rest. Corp.
           dba Nino's Positano
      Bankr. S.D.N.Y. Case No. 12-13305
        Chapter 11 Petition filed August 1, 2012
            See http://bankrupt.com/misc/nysb12-13305.pdf
            Represented by: Salvatore J. Liga, Esq.
                            The Liga Law Group, P.C.
                            E-mail: sliga@ligalaw.com

   In re Arta LLC
      Bankr. S.D.N.Y. Case No. 12-13306
        Chapter 11 Petition filed August 1, 2012

   In re Ninos Tribeca Restaurant Ltd
      Bankr. S.D.N.Y. Case No. 12-13307
        Chapter 11 Petition filed August 1, 2012

In re DSK, Inc.
   Bankr. E.D.N.C. Case No. 12-05595
     Chapter 11 Petition filed August 1, 2012
         See http://bankrupt.com/misc/nceb12-05595.pdf
         represented by: Travis Sasser, Esq.
                         Sasser Law Firm
                         E-mail: tsasser@carybankruptcy.com

In re Herb Vest
   Bankr. E.D. Tex. Case No. 12-42062
      Chapter 11 Petition filed August 1, 2012

In re E Eiseman
   Bankr. E.D. Wis. Case No. 12-31537
      Chapter 11 Petition filed August 1, 2012


In re Landmark Fund I, LLC
   Bankr. C.D. Calif. Case No. 12-36746
     Chapter 11 Petition filed August 3, 2012
         See http://bankrupt.com/misc/cacb12-36746p.pdf
         See http://bankrupt.com/misc/cacb12-36746c.pdf
         represented by: Art Hoomiratana, Esq.
                         Law Office of Art Hoomiratana

In re G&G Construction USA, Inc.
   Bankr. D. Del. Case No. 12-12276
     Chapter 11 Petition filed August 3, 2012
         See http://bankrupt.com/misc/deb12-12276.pdf
         represented by: John D. McLaughlin, Jr., Esq.
                         Ciardi Ciardi & Astin
                         E-mail: jmclaughlin@ciardilaw.com

In re Carl D. Jones
        and Sara A. Jones
   Bankr. S.D. Ga. Case No. 12-60436
      Chapter 11 Petition filed August 3, 2012

In re Touched By An Angel Healthcare, Inc.
   Bankr. S.D. Ga. Case No. 12-11370
     Chapter 11 Petition filed August 3, 2012
         See http://bankrupt.com/misc/gasb12-11370p.pdf
         See http://bankrupt.com/misc/gasb12-11370c.pdf
         represented by: James T. Wilson, Jr., Esq.
                         E-mail: brooke@jtwilsonlaw.com

In re William Murphy
   Bankr. M.D. Fla. Case No. 12-10636
      Chapter 11 Petition filed August 3, 2012

In re Builders Steel Supply, Inc.
   Bankr. D. Md. Case No. 12-24372
     Chapter 11 Petition filed August 3, 2012
         See http://bankrupt.com/misc/mdb12-24372.pdf
         represented by:  Richard H. Gins, Esq.
                         The Law Office of Richard H. Gins, LLC
                         E-mail: richard@ginslaw.com

In re Krishna Investments, LLC
   Bankr. W.D. Mo. Case No. 12-43223
     Chapter 11 Petition filed August 3, 2012
         See http://bankrupt.com/misc/mowb12-43223.pdf
         represented by: Erlene W. Krigel, Esq.
                         Krigel & Krigel, P.C.
                         E-mail: ekrigel@krigelandkrigel.com

In re MGP Investments, LLC
   Bankr. W.D. Mo. Case No. 12-43222
     Chapter 11 Petition filed August 3, 2012
         See http://bankrupt.com/misc/mowb12-43222.pdf
         represented by: Erlene W. Krigel, Esq.
                         Krigel & Krigel, P.C.
                         E-mail: ekrigel@krigelandkrigel.com

In re Safe Shot, LLC
   Bankr. D. Nev. Case No. 12-51836
     Chapter 11 Petition filed August 3, 2012
         See http://bankrupt.com/misc/nvb12-51836.pdf
         represented by: Gloria M. Petroni, Esq.
                         Petroni & Nichols, Ltd.
                         E-mail: topgun@renolaw.biz

In re Valeriy Romanchenko
   Bankr. D. Nev. Case No. 12-19089
      Chapter 11 Petition filed August 3, 2012

In re Joseph Treanor
   Bankr. D.N.J. Case No. 12-29392
      Chapter 11 Petition filed August 3, 2012

In re Wee Love, Inc.
   Bankr. D.N.J. Case No. 12-29414
     Chapter 11 Petition filed August 3, 2012
         See http://bankrupt.com/misc/njb12-29414.pdf
         represented by: Ellen M. McDowell, Esq.
                         McDowell Riga Posternock, P.C.
                         E-mail: emcdowell@mrpattorneys.com

In re Secretary Auto Repair, Inc.
        aka Mr. Auto Sales
   Bankr. S.D.N.Y. Case No. 12-13322
     Chapter 11 Petition filed August 3, 2012
         See http://bankrupt.com/misc/nysb12-13322.pdf
         represented by: Nestor Rosado, Esq.
                         E-mail: neslaw2@msn.com

In re 501 Grant Street Partners, LLC
   Bankr. W.D. Pa. Case No. 12-23890
     Chapter 11 Petition filed August 3, 2012
         See http://bankrupt.com/misc/pawb12-23890p.pdf
         See http://bankrupt.com/misc/pawb12-23890c.pdf
         represented by: Roger M. Bould, Esq.
                         Keevican Weiss Bauerle & Hirsch, LLC
                         E-mail: rbould@kwbhlaw.com

In re Terri Blumling
   Bankr. W.D. Pa. Case No. 12-23888
      Chapter 11 Petition filed August 3, 2012

In re Jose Pizarro Rohena
   Bankr. D.P.R. Case No. 12-06156
      Chapter 11 Petition filed August 3, 2012

In re Benji's Special Educational Academy
        aka Theaola Robinson
   Bankr. S.D. Tex. Case No. 12-35722
     Chapter 11 Petition filed August 3, 2012
         See http://bankrupt.com/misc/txsb12-35722.pdf
         Filed pro se

In re Gayle Hughes
   Bankr. W.D. Wash. Case No. 12-45424
      Chapter 11 Petition filed August 3, 2012

In re Ryden Hazelhurst Marine, LLC
   Bankr. W.D. Wis. Case No. 12-14439
     Chapter 11 Petition filed August 3, 2012
         See http://bankrupt.com/misc/wiwb12-14439.pdf
         represented by: James T. Runyon, Esq.
                         Runyon Law Offices, LLC
                         E-mail: jtrunyon@runyonlawoffices.com

In re Pete Enterprises, Inc.
   Bankr. N.D. Ohio Case No. 12-15744
     Chapter 11 Petition filed August 4, 2012
         See http://bankrupt.com/misc/ohnb12-15744.pdf
         represented by: Richard H. Nemeth, Esq.
                         Nemeth & Barrett, LLC
                         E-mail: rnemeth@ohbklaw.com



                            *********

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.


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