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/raid1/www/Hosts/bankrupt/TCR_Public/130123.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, January 23, 2013, Vol. 17, No. 22 Headlines 22ND CENTURY: Obtains $2.5 Million From Securities Sale 360 GLOBAL: Files 2010 Quarterly Reports as Required by Plan 501 GRANT: June 11, 2013 Fixed as Governmental Claims Bar Date AEMETIS INC: Idles Corn Ethanol Production Plant in Calif. ALPHA PARTNERS: Case Summary & 2 Unsecured Creditors AMERICAN AIRLINES: Courtroom Victory Knocks Down Aircraft Debt AMERICAN AIRLINES: Former Pilot Seeks Stay Relief to Pursue Appeal AMERICAN AIRLINES: Inks New Codeshare Deal With Qatar Airways AMERICAN AIRLINES: Names J. Snook as Sr. VP of Customer Service APPLESEED'S INTERMEDIATE: Golden Gate Said to Ink $75MM Deal ARMAND PROPERTIES: Owner of Puerta Del Sol Files Bankruptcy ATP OIL: Court OKs Diamond McCarthy as Equity Committee Counsel ATP OIL: Equity Committee Wins OK for Gordian as Financial Advisor ATP OIL: Amends Schedules of Assets and Liabilities BEALL CORP: Obtains Secured Financing to Pay Insurance Premiums BENADA ALUMINUM: Feb. 6 Combined Hearing on Plan Set BIG M: To Try Selling Stores as Going Concern BION ENVIRONMENTAL: Presents at Noble Financial Conference BLACK CROW: Consummates Plan Year After Confirmation CARL'S PATIO: Files for Chapter 11 to Sell to Insiders CARL'S PATIO: Has $3.7-Mil. of DIP Financing From Fifth Third CARL'S PATIO: Proposes Epiq as Claims and Notice Agent CARL'S PATIO: Case Summary & 20 Largest Unsecured Creditors CHRIST HOSPITAL: Employs George Popko as Liquidating Officer CHURCH STREET HEALTH: Schedules March 6 Confirmation CLINICA REAL: Court Approves Mahaffy as Special Counsel CLINICA REAL: Stay Lifted for State Court Litigation to Proceed COMMUNITY FINANCIAL: Sagus Financial Discloses 9% Equity Stake CONQUEST SANTA FE: Has Access to Cash Collateral Until Jan. 31 CONQUEST SANTA FE: Wins OK for Mesch Clark as Counsel CONQUEST SANTA FE: Taps Walcott & Henry for Litigation CRYOPORT INC: Westcliff Capital Lowers Equity Stake to 4.2% DESERT OASIS: Wells Fargo Plan Appeal Dismissed DUNE ENERGY: Highbridge, et al, to Resell 18.7MM Common Shares EAGLE POINT: Court Approves Brown Chudleigh as Appraiser EDUCATION HOLDINGS: Files Chapter 11 With Prepackaged Plan EDUCATION HOLDINGS: Proposes $7-Million of DIP Financing EDUCATION HOLDINGS: To Limit Equity Transfers to Protect NOLs EDUCATION HOLDINGS: Case Summary & 15 Top Unsecured Creditors ELEPHANT TALK: Signs SDN Contract in Latin American Market EMISPHERE TECHNOLOGIES: Inks 3-Year Contract With CFO M. Garone EVANS OIL: Court Converts Case to Chapter 7 FLINTKOTE COMPANY: Plan Confirmed, ITCAN Objection Junked FTLL ROBOVAULT: Case Trustee Can Hire Forensic Accountants FTLL ROBOVAULT: Man, Claims to Represent Pope, Taken Into Custody GEOKINETICS INC: Avista Capital Discloses 38.5% Equity Stake GREYSTONE LOGISTICS: Reports $2,600 Net Income in Nov. 30 Qtr. HAROLD BUNTING: E.D. Mich. Court Rules in Unpaid Lawyer's Appeal HAWKER BEECHCRAFT: Pension Deals Pending with Bankruptcy Judge HOOKUP LLC: Bankrupt Tenant's Chairman Cited for Civil Contempt JD TOOL: Court Rejects Chapter 7 Trustee's Case Dismissal Bid KAREN W. FORD: Court Rejects Bid for Contempt Against Wells Fargo LA JOLLA: To Present at Next Week's Orlando World MoneyShow LEGAL iGAMING: Equity Holders Lose Appeal Over Asset Sale LEHMAN BROTHERS: Seeks $291MM Reserve for US Air, Essex Claims LEHMAN BROTHERS: Automatic Stay Extended for 50+ Lawsuits LEHMAN BROTHERS: Subpoenas Still Being Served to Banks LEHMAN BROTHERS: Opposes Traxis Bid to Re-Issue Checks LEHMAN BROTHERS: Court OKs Deloitte, et al., Final Fee Requests LIBERTY HARBOR: Plan Filing Exclusivity Extended to Feb. 21 LLS AMERICA: District Court to Hear 17 Avoidance Actions LOCAL SERVICE: Zoning Dispute Won't Proceed as Class Action LYON WORKSPACE: Proposes March 21 Auction for Assets LYON WORKSPACE: Soliciting Going-Concern Offers for Assets LYON WORKSPACE: Has $22.3-Million of DIP Financing MARKET STREET: Plan of Reorganization Declared Effective MMRGLOBAL INC: Stresses Accomplishments in Letter to Shareholders MONTANA ELECTRIC: Accord Permits Yellowstone to Quit Coop MOORE FREIGHT: Lender Agrees to Use of Cash Collateral MUSCLEPHARM CORP: Files Certificate of Designation of Pref. Stock NEDAK ETHANOL: Defaults Under Loans, Winding Down Operations NEW ENGLAND COMPOUNDING: Bankruptcy Filing Stays Slatton Suit NEW ENGLAND COMPOUNDING: Thusday Hearing on Trustee Appointment NEW ENGLAND COMPOUNDING: Brown Rudnick Represents Creditors NNN 3500: Hiring Darvy Mack Cohan as Counsel NNN LENOX: Section 341(a) Meeting Set for April 1 NORTHAMPTON GENERATING: Plan Hearing Continued Until Jan. 29 PENNFIELD CORP: Cargill's $9.8MM Tops Auction; Price Rose $1.3MM PIPELINE DATA: Has Access to Cash Collateral Until Feb. 26 PLC SYSTEMS: Inks Amendment and Waiver to GCP Securities Pact RAHA LAKES: Creditors Have Until Feb. 28 to File Proofs of Claim RAINBOW LAND: To Present Plan for Confirmation on March 11 RICHARD W. HOYLE: U.S. Trustee Wins Chapter 7 Conversion RITZ CAMERA: In Chapter 7 Liquidation Effective Jan. 15 ROTECH HEALTHCARE: Amends Current Report to Add Documents SAVE MOST: Wins Approval to Use Cash Collateral SENTINEL MANAGEMENT: Safe-Harbor Case Heads for Court of Appeals SEQUENOM INC: Assumes Commercial Office Lease from eBioscience SHAMROCK-HOSTMARK: Cash Collateral Use Hearing Tomorrow STABLEWOOD SPRINGS: SRS to Charge $20,000 Per Month for CRO Role STABLEWOOD SPRINGS: Wins Interim Approval for Cash Use STABLEWOOD SPRINGS: Sec. 341(a) Meeting Continued to Jan. 24 STAGE PRESENCE: Court Rules in Breach of Contract Suit STAMP FARMS: Can Access Up to $1.8-Mil. of WF Cash Collateral STAR BUFFET: Exits Chapter 11 Bankruptcy Protection STR HOLDINGS: Loses Key Customer; Reviews Strategic Alternatives THERMOENERGY CORP: Amends 63.8MM Shares Resale Prospectus VIVARO CORP: Creditors Have Until Feb. 1 to File Proofs of Claim VIVARO CORP: Section 341(a) Meeting Now Set for Jan. 28 W.R. GRACE: R. Ted Weschler Discloses 4.97% Stake W.R. GRACE: Sealed Air Continues to Monitor Grace Bankruptcy W25 LLC: Creditors Have Until Feb. 13 to File Proofs of Claim W25 LCC: Section 341(a) Meeting Adjourned to Jan. 28 WILLIAM M. FOSTER: Wilmington Plantation Dispute Goes to Trial WOUND MANAGEMENT: Ordered to Pay $20,000 Penalty in Civil Action * Home Ownership Through LLC Means Loss of Exemption * Likely Pick to Head SEC Is Veteran Prosecutor and Litigator * Calpers Buy-Hold Strategy Recoups $95 Billion Recession Loss * Upcoming Meetings, Conferences and Seminars ********* 22ND CENTURY: Obtains $2.5 Million From Securities Sale ------------------------------------------------------- 22nd Century Group, Inc., on Jan. 11, 2013, entered into and closed the transactions described in a Securities Purchase Agreement with certain accredited investors, whereby the Company sold 2,500 shares of its newly created Series A-1 10% Convertible Preferred Stock and a 5-year Series A warrant for an aggregate purchase price of $2,500,000. The Company intends to use the proceeds from this Transaction for the payment of certain financial obligations and for working capital and other general corporate purposes. The shares of Series A-1 Preferred Stock are convertible into a total of 4,166,666 shares of the Company's common stock at a conversion price of $0.60 per share, subject to future adjustments. The Series A Warrant allows the Purchasers the right to acquire up to an additional 4,166,666 shares of the Company's common stock at an exercise price of approximately $0.72 per share. The Series A Warrant also allows for such warrant to be exercised on a cashless basis. The Company also granted the Purchasers, in the form of a Series B warrant, a one-year overallotment option to purchase up to an additional aggregate of 2,083,334 shares of the Company's common stock at a price of $0.60 per share. The Series B Warrant may not be exercised on a cashless basis except only in certain limited circumstances. In the event the Purchasers exercise, in whole or in part the overallotment option, then the Purchasers will have the right to exercise on a pro rata basis the portion of the Series C warrant issued to the Purchasers to acquire up to an additional aggregate of 2,083,334 shares of the Company's common stock at an exercise price of approximately $0.72 per share. The Series C Warrant allows for such warrant to be exercised on a cashless basis. The Company has also agreed, pursuant to the terms of the Purchase Agreement and a Registration Rights Agreement entered into by the Company and the Purchasers as part of this Transaction, to file a registration statement to register under the Securities Act of 1933, as amended, the shares of Company common stock that are issuable under each of the above-described Series A-1 Preferred Stock, the Series A Warrant, the Series B Warrant and the Series C Warrant. As a requirement of this Transaction, the directors, officers and a 5% stockholder of the Company were required by the Purchasers to sign a lock-up agreement which restricts all those persons from selling virtually all of the securities of the Company owned by each such person for the period of time from the closing of this Transaction until the date which is two months after the effective date of the registration statement under which the shares of Company common stock underlying the securities sold to the Purchasers are registered under the Securities Act. As a further requirement of this Transaction, the Purchasers required the Company to obtain from certain specified investors in the Company an additional lock-up agreement which restricts all those persons from selling certain securities of the Company owned by each such person for the period of time from the closing of this Transaction until the date which is two months after the effective date of the registration statement under which the shares of Company common stock underlying the securities sold to the Purchasers are registered under the Securities Act. The Company paid Chardan Capital Markets LLC a commission equal to (i) 10% of the cash received by the Company from the Purchasers in this Transaction and (ii) 416,666 shares of restricted stock. In the event the Purchasers exercise for cash any of the warrants issued to the Purchasers in this Transaction, then the Company will also pay an additional cash commission to Chardan Capital Markets LLC equal to 8% of any such additional cash amounts received by the Company. A copy of the Form 8-K is available at http://is.gd/QnUwpc About 22nd Century Clarence, New York-based 22nd Century Group, Inc., through its wholly-owned subsidiary, 22nd Century Ltd, is a plant biotechnology company using technology that allows for the level of nicotine and other nicotinic alkaloids (e.g., nornicotine, anatabine and anabasine) in tobacco plants to be decreased or increased through genetic engineering and plant breeding. Freed Maxick CPAs, PC, in Buffalo, New York, expressed substantial doubt about 22nd Century Group's ability to continue as a going concern following the financial results for the year ended Dec. 31, 2011. The independent auditors noted that the Company has suffered recurring losses from operations and, as of Dec. 31, 2011, has negative working capital of $1.9 million and a shareholders' deficit of $1.2 million. "Additional financing will be required during 2012 in order to satisfy existing current obligations and finance working capital needs, as well as additional losses from operations that are expected in 2012." The Company incurred a net loss of $1.34 million in 2011, compared with a net loss of $1.42 million in 2010. The Company's balance sheet at Dec. 31, 2011, showed $2.39 million in total assets, $3.60 million in total liabilities, and a stockholders' deficit of $1.21 million. 360 GLOBAL: Files 2010 Quarterly Reports as Required by Plan ------------------------------------------------------------ 360 Global Investments filed with the U.S. Securities and Exchange Commission its quarterly reports for the 1st, 2nd and 3rd quarters of 2010. The Company reported a net loss of $37,500 on $0 of revenue for the three months ended March 30, 2010, compared with a net loss of $37,500 on $0 of revenue for the same period during the prior year. A copy of the Q1 2010 Form 10-Q is available at: http://is.gd/l9CZ0C For the three months ended June 30, 2012, the Company reported a net loss of $37,500 on $0 of revenue, compared with a net loss of $37,500 on $0 of revenue for the same quarter during the previous year. A copy of the Q2 2010 Form 10-Q is available at: http://is.gd/ceOHym The Company also reported a net loss of $112,500 on $0 of revenue for the nine months ended Sept. 30, 2010, compared with a net loss of $112,500 on $0 of revenue for the same period during the preceding year. The Company's balance sheet at Sept. 30, 2010, showed $0 in total assets, $262,500 in total liabilities and a $262,500 total stockholders' deficit. A copy of the Q3 2010 Form 10-Q is available at: http://is.gd/dGBRg4 On Dec. 12, 2008, 360 Global's Disclosure Statement and Plan of Reorganization was confirmed by United States Bankruptcy Court for the District of Nevada. As described in this Global Plan, the Company's business plan is made up of two activities. First, undertaking the administrative, accounting, SEC related, and all other work necessary to prepare and file updated financial statements and annual and quarterly reports with the SEC and any other governmental organizations, in order to re-establish Reorganized Global as a fully reporting public company and re-list its common stock on a nationally recognized stock exchange or market quotation system. In order to accomplish this goal, Reorganized Global's plan is to complete the following SEC filings (among other filings and reports), which Reorganized Global will complete as soon as practical taking into account the general economic climate: 10Q for the 3rd quarter of 2010 10K annual report and audit for the year ended December 31, 2010 10Q for the 1st quarter of 2011 10Q for the 2nd quarter of 2011 10Q for the 3rd quarter of 2011 10K annual report and audit for the year ended December 31, 2011 10Q for the 1st quarter of 2012 10Q for the 2nd quarter of 2012 10Q for the 3rd quarter of 2012 10K annual report and audit for the year ended December 31, 2012 The second activity is to conduct the appropriate search, perform the necessary analysis, negotiate a price and structure, plan the financing, and raise the necessary capital to acquire an operating business or effect a merger or acquisition, or capital stock exchange, asset acquisition, or other similar business combination with an operating business. The subsequent 2009 global recession caused delays in the first and second activities. About 360 Global 360 Global Investments, formerly 360 Global Wine Company, is a publicly traded investment holding company that has invested in a number of diverse business activities and that has targeted a number of industries for future investment. 360 Global is domiciled in the state of Nevada and its corporate headquarters are located in Los Angeles, Calif. 360 Global Wine Company, Inc., filed for Chapter 11 protection (Bankr. D. Nev. Case No. 07-50205) on March 7, 2007. 501 GRANT: June 11, 2013 Fixed as Governmental Claims Bar Date -------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California established June 11, 2013, as the deadline for any governmental units to file proofs of claim against 501 Grant Street & Union Trust Building. The Court has order the Debtor to file a chapter 11 plan and disclosure statement by April 12. About 501 Grant Street & Union Trust Building An involuntary Chapter 11 bankruptcy petition was filed against 501 Grant Street Partners LLC, based in Woodland Hills, California (Bankr. C.D. Calif. Case No. 12-20066) on Nov. 14, 2012. The petitioning creditors are Allied Barton Security Services LLC, owed $960 for security services; Cost Company LP, $5,900 owed for masonry work; and MSA Systems Integration Inc., owed $2,401 for unpaid invoice. Malhar S. Pagay, Esq., at Pachulski Stang Ziehl & Jones LLP, represents the petitioning creditors. 501 Grant Street Partners owns the Union Trust Building in downtown Pittsburgh, Pennsylvania. It sought Chapter 11 protection (Bankr. W.D. Pa. Case No. 12-23890) on Aug. 3, 2012, to avert a sheriff sale of the building set for Aug. 6. The August petition estimated under $50,000 in both assets and debts. Roger M. Bould, Esq., at Keevican Weiss Bauerle & Hirsch, LLC, represented 501 Grant Street as counsel. In November, U.S. Bankruptcy Judge Judith K. Fitzgerald dismissed 501 Grant Street Partners' Chapter 11 petition, paving for the sheriff sale of the Union Trust Building on Jan. 7, 2013. The order for relief from the involuntary case was signed on Dec. 13, 2012. SA Challenger Inc., which acquired interest in the building's mortgage by U.S. Bank, is seeking to foreclose on the property. SA Challenger is seeking to collect $41.4 million. Earlier in November, at the lender's request, Judge Ward appointed the real estate firm CBRE to serve as receiver for the building, overseeing its operation and management until the sheriff sale takes place. AEMETIS INC: Idles Corn Ethanol Production Plant in Calif. ---------------------------------------------------------- Aemetis, Inc., took the strategic step to idle corn grinding and ethanol production activities at its Keyes, California, plant due to the current unfavorable market conditions for corn ethanol production while it undertakes efforts expected to result in the restart of the plant as an advanced biofuel producer. This action is in keeping with the Company's plan to move to advanced biofuel feedstocks and inputs using a recently approved milo/biogas EPA pathway for a significant portion of its operational capacity. About Aemetis Headquartered in Cupertino, California, Aemetis, formerly AE Biofuels Inc., is an advanced fuels and renewable chemicals company. Aemetis owns and operates a 55 million gallon renewable fuels plant in California; and owns and operates a 50 million gallon capacity renewable chemicals and advanced fuels production facility on the east coast of India. Aemetis operates a research and development laboratory at the Maryland Biotech Center, and holds four granted patents and ten pending patents on its Z- microbe and related technology for the production of renewable fuels and chemicals. For additional information about Aemetis, please visit www.aemetis.com. Aemetis disclosed a net loss of $18.29 million for the year ended Dec. 31, 2011, compared with a net loss of $8.56 million during the prior year. The Company's balance sheet at Sept. 30, 2012, showed $98.84 million in total assets, $87.46 million in total liabilities and $11.37 million in total stockholders' equity. ALPHA PARTNERS: Case Summary & 2 Unsecured Creditors ---------------------------------------------------- Debtor: Alpha Partners, Ltd. 13702 Gamma Road Dallas, TX 75244 Bankruptcy Case No.: 13-30266 Chapter 11 Petition Date: January 21, 2013 Court: U.S. Bankruptcy Court Northern District of Texas (Dallas) Judge: Barbara J. Houser About the Debtor: The Debtor filed a bare-bones Chapter 11 petition. Debtor's Counsel: Mark A. Castillo, Esq. CURTIS CASTILLO, P.C. 901 Main Street, Suite 6515 Dallas, TX 75202 Tel: (214) 752-2222 Fax: (214) 752-0709 E-mail: mcastillo@curtislaw.net Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by James T. Maxwell, limited partner and director/officer of ZVN, Inc., general partner. The Debtor's list of its top unsecured creditors contains only two entries: Entity Nature of Claim Claim Amount ------ --------------- ------------ Lincoln General Insurance Company Tortious Inference $16,500,000 c/o William N. Radford Claim THOMPSON, COE, COUSINS & IRONS, LLP 700 N. Pearl Street, 25th Floor Dallas, TX 75201-2832 Frost Bank Loan $0 fka Frost National Bank 100 W. Houston San Antonio, TX 78205 AMERICAN AIRLINES: Courtroom Victory Knocks Down Aircraft Debt -------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the courtroom victory AMR Corp. won over some aircraft debt holders last week knocked several dollars off the price of bonds in trading on Jan. 18. The failure of the bonds to fall all the way to par might be interpreted as an indication that some holders believe there is a chance of success on appeal. According to the report, U.S. Bankruptcy Judge Sean H. Lane ruled last week that holders of three issues of aircraft financing bonds aren't entitled to so-called make-whole premiums although the debt will be repaid before maturity. Were the make-whole applicable, the parent of American Airlines Inc. had previously said it would be obliged to repay 155% of the $425 million owing on 10.375% first-lien bonds due 2021. The bonds, also known as the 2009-1 EETCs, last traded before Judge Lane's decision for 108 cents on the dollar, to yield 8.830%, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The bonds traded down to 103.5 at 12:09 p.m. on Jan. 18, recovering to 107 at 2:30 p.m. The $682.2 million in 8.625% pass-through certificates due 2021 dropped and didn't recover. Last traded before Judge Lane's opinion at 108.25 to yield 7.455, they fell at 12:27 p.m. on Jan. 18 to 103.35 and a yield of 8.133. The $174.2 million in 13% first-lien secured notes due 2016 sold before the decision at 107. They fetched 103.75 in a 1:36 p.m. trade on Jan. 18. The report notes that Judge Lane's opinion was part of a ruling to approve $1.5 billion in new aircraft financings to generate cash for repaying the existing debt. The bonds being paid off carry interest two to three times higher than AMR expects to pay by issuance of new secured debt. 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. AMR has yet to decide whether it will reorganize as a standalone airline or merge with US Airways Group Inc. 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: Former Pilot Seeks Stay Relief to Pursue Appeal ------------------------------------------------------------------ Lawrence Meadows, former American Airlines pilot, asked the U.S. Bankruptcy Court in Manhattan to lift the automatic stay to allow an appeals court to rule on his appeal. The former pilot appealed the dismissal of his case by a lower court, where he sought payment of long-term disability benefits for the period December 2007 to December 2011 under the airline's 2004 pilot retirement plan. In court papers, Mr. Meadows said the company did not offer evidence that any ruling by the appeals court will determine which benefit plan applies to him. The former pilot also said the company did not offer evidence that the pending American Pilots' Association grievance of February 2012 will determine his employment status. 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: Inks New Codeshare Deal With Qatar Airways ------------------------------------------------------------- American Airlines has signed an agreement with Doha, Qatar-based Qatar Airways, one of the world's fastest-growing airlines and a Skytrax 5-Star rated carrier, to codeshare on each other's flights providing new growth opportunities for American in the Middle East and for Qatar in the United States. Following government approvals the new codeshare agreement will offer customers more seamless choices by allowing the two airlines to work together to improve flight schedules and connection times. "Our extensive codeshare relationship with Qatar Airways will provide our customers with easy, premium access when traveling to and from the Middle East and beyond," said Kurt Stache, American's Vice President -- Strategic Alliances. "This new codeshare relationship with Qatar is another example of how American is focused on building its global network through closer coordination with its alliance partners around the world." The agreement with Qatar will include codesharing on nonstop flights between the U.S. and Doha, flights connecting at the carriers' European gateways such as Paris and London, and flights to cities in the U.S. and beyond Doha. Additionally, members of the American Airlines AAdvantage(R) program will be able to earn miles on the codeshare flights operated by Qatar Airways, providing another valuable benefit of the relationship. Customers can begin booking travel on codeshare flights as early as Feb. 10, 2013 for travel beginning Feb. 26, 2013. In October 2012, Qatar was invited to join the oneworld(R) alliance. Qatar is the first of the three major carriers in the Gulf to join a global airline alliance. Its addition will add 15 destinations and three countries to the oneworld map. Qatar currently serves 120 destinations in 70 countries in the Middle East, Europe, Africa, North and South America, Asia and Australia. From its Doha hub, it offers more than 1,100 weekly flights, including service to 17 cities throughout the Middle East. 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: Names J. Snook as Sr. VP of Customer Service --------------------------------------------------------------- American Airlines thanks Craig S. Kreeger, for his more than 25 years of service to the company while announcing that Jonathan D. Snook, American's Vice President -- Operations Planning and Performance, will assume Kreeger's role as Senior Vice President -- Customer Service, managing all aspects of the customer experience -- from reservations and airport operations to inflight service and baggage handling. "Craig has always been a driving force at American -- bringing innovation and transformation to so many parts of our airline for more than 25 years," said Tom Horton, American's Chairman and Chief Executive Officer. "Most recently, Craig aligned and consolidated a global team focused on improving the customer experience throughout all areas of travel. On behalf of the people of American, I thank Craig for his vision and dedication, and wish him the best as he returns to London to become Chief Executive at Virgin Atlantic." Jon Snook replaces Kreeger as American's Senior Vice President -- Customer Service. Snook is a native of Manchester, England where he began his career at American as an airport agent, progressing quickly into a variety of leadership roles in international and domestic airport operations, Reservations, Sales, and International Planning. He also served as Senior Vice President -- Customer Service for American Eagle between 2004 and 2010. For the past three years, Snook has served as American's Vice President -- Operations Planning and Performance. "Jon is a steadfast advocate for our customers and our people, and he has helped improve the company's operational performance and dependability to some of the best levels in years," said Horton. "Equally important, Jon embodies the people leadership and collaboration skills consistent with the new American. I look forward to seeing Jon take our company to new heights by finding fresh and innovative ways to put our customers at the center of all that we do every day." In his role as Vice President -- Operations Planning and Performance, Snook had responsibility for the airline's System Operations Control (SOC) Center, as well as crew scheduling, airline dependability and operations engineering. The SOC is known as the central nerve center of American's flight activities throughout the world -- monitoring and directing the operations of the airline's 2,500 daily departures. 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). APPLESEED'S INTERMEDIATE: Golden Gate Said to Ink $75MM Deal ------------------------------------------------------------ Affiliates of Golden Gate Capital Corp. paid $75 million to settle a fraudulent-transfer lawsuit stemming from the April 2007 leveraged buyout of Orchard Brands Corp., Bloomberg News reported, citing a person with knowledge of the settlement. The report recounts that the suit was brought originally in bankruptcy court by a trust created for creditors of Orchard Brands. The suit alleged that private-equity investor Golden Gate was the mastermind of an LBO that left Orchard insolvent from $500 million in new secured debt and a $310 million dividend paid to the investors along with completion of the acquisition. The creditors, according to the report, gained leverage for settlement when U.S. District Judge Joseph E. Irenas took the suit out of bankruptcy court and ruled in March that San Francisco- based Golden Gate wasn't entitled to dismissal of the complaint. Judge Irenas said that the facts laid out in the complaint, taken at face value, made good claims for fraudulent transfer, of types known as constructive and intentionally fraudulent. According to the report, the settlement was completed in late December. The existence of the settlement, without terms, is shown on court records. The settlement eventually will result in a distribution in the low 30% range to low 40%, the person said. The numbers could change significantly, the person said. Part of the settlement will be shared with the company which financed the lawsuit. Bill Rochelle, the bankruptcy columnist for Bloomberg News, notes that the decision by Judge Irenas was important because he ruled that a $310 million dividend wasn't protected by the so-called safe harbor in Section 546(e) of the U.S. Bankruptcy Code. The lawsuit is Michaelson v. Farmer, (In re Appleseed's Intermediate Holdings LLC), 11-807, U.S. District Court, District of Delaware (Wilmington). About Appleseed's Intermediate Based in Beverly, Massachusetts, Appleseed's Intermediate Holdings LLC, aka Appleseed's Intermediate Holdings, Inc., aka Orchard Brands sells clothing to people 55 and older. Orchard Brands has 17 brands including Appleseed's, Draper's & Damon's, Gold Violin, Haband and Norm Thompson. It publishes catalogs and has stores under its Appleseed's and Draper's & Damon's brands. It has annual sales of about $1 billion and earnings before interest, taxes, depreciation and amortization are about $50 million. Appleseed's is owned by Golden Gate Capital Corp., which also holds stakes in retailers Express Inc., Eddie Bauer Holdings Inc. and Zale Corp. Appleseed's Intermediate and its affiliates filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case No. 11-10160) on Jan. 19, 2011. Appleseed's Intermediate estimated assets at $100 million to $500 million and debts at $500 million to $1 billion in its Chapter 11 petition. Richard M. Cieri, Esq., Joshua A. Sussberg, Esq., at Brian E. Schartz, at Kirkland & Ellis LLP, serve as the Debtors' bankruptcy counsel. Domenic E. Pacitti, Esq., at Klehr Harrison Harvey Branzburg LLP, serves as local counsel to the Debtors. Moelis & Company LLC is the Debtors' investment banker and financial advisor. Alvarez & Marshal North America, LLC, is the Debtors' restructuring advisor. Pricewaterhousecoopers LLP is the Debtors' independent auditor. Kurtzman Carson Consultants LLC is the notice, claims and balloting agent. Jay R. Indyke, Esq., Cathy Hershcopf, Esq., Brent Weisenberg, Esq., and Richelle Kalnit, Esq., at Cooley LLP, in New York, and Robert K. Malone, Esq., Michael P Pompeo, Esq., and Howard A Cohen, Esq., at Drinker Biddle & Reath LLP, in Wilmington, Delaware, represent the Official Committee of Unsecured Creditors. The Orchard Brands subsidiaries implemented their reorganization plan after obtaining confirmation of the plan on April 14, 2011. While reducing debt by $420 million, the plan created a creditors' trust. ARMAND PROPERTIES: Owner of Puerta Del Sol Files Bankruptcy ----------------------------------------------------------- Paul Brinkmann, writing for South Florida Business Journal, reports that the owner of the Puerta Del Sol retail center in the Goulds area, Armand Properties I, has filed for Chapter 11 bankruptcy in Miami. Armand Properties I declared between $10 million and $50 million in debts on its bankruptcy petition. Tanveer Hasan signed the petition as the company's president. Joel Aresty, Esq., of North Miami, serves as Armand's counsel. The report recounts that in June 2012, Wells Fargo Bank moved to foreclose on Armand Properties. At the time, tenants included Family Dollar and Church's Chicken. Th report relates the 39,659-square-foot retail center, built in 2009, sits on 3.55 acres at 22041 S. Dixie Highway. The mortgage was last modified in 2008 at $5.4 million by Wachovia Bank, which was later acquired by Wells Fargo. Francisco Armada, Esq., in Miami represented Wells Fargo in the foreclosure suit. ATP OIL: Court OKs Diamond McCarthy as Equity Committee Counsel --------------------------------------------------------------- The Official Committee of Equity Security Holders in the Chapter 11 case of ATP Oil & Gas Corp. has obtained permission from the Hon. Marvin Isgur of the U.S. Bankruptcy Court for the Southern District of Texas to retain Diamond McCarthy LLP as counsel, effective as of Nov. 12, 2012. Diamond McCarthy will, among other things, assist and advise the Equity Committee in its negotiations and consultations with the Debtor, creditors and parties in interest relative to the administration of the Chapter 11 case. About ATP Oil Houston, Tex.-based ATP Oil & Gas Corporation is an international offshore oil and gas development and production company focused in the Gulf of Mexico, Mediterranean Sea and North Sea. ATP Oil & Gas filed a Chapter 11 petition (Bankr. S.D. Tex. Case No. 12-36187) on Aug. 17, 2012. Attorneys at Mayer Brown LLP, serve as bankruptcy counsel. Munsch Hardt Kopf & Harr, P.C., is the conflicts counsel. Opportune LLP is the financial advisor and Jefferies & Company is the investment banker. Kurtzman Carson Consultants LLC is the claims and notice agent. Filings with the Bankruptcy Court and claims information are available at http://www.kccllc.net/atpog ATP disclosed assets of $3.6 billion and $3.5 billion of liabilities as of March 31, 2012. Debt includes $365 million on a first-lien loan where Credit Suisse AG serves as agent. There is $1.5 billion on second-lien notes with Bank of New York Mellon Trust Co. as agent. ATP's other debt includes $35 million on convertible notes and $23.4 million owing to third parties for their shares of production revenue. Trade suppliers have claims for $147 million, ATP said in a court filing. An official committee of unsecured creditors has been appointed in the case. Evan R. Fleck, Esq., at Milbank, Tweed, Hadley & McCloy, in New York, represents the Creditors Committee as counsel. ATP OIL: Equity Committee Wins OK for Gordian as Financial Advisor ------------------------------------------------------------------ The Hon. Marvin Isgur of the U.S. Bankruptcy Court for the Southern District of Texas has granted the Official Committee of Equity Security Holders in the Chapter 11 case of ATP Oil & Gas Corp. authorization to retain Gordian Group, LLC, as financial advisors and investment banker, effective Nov. 12, 2012. Gordian Group will, among other things, review and analyze the Debtor's business, operations and financial condition and advise the Equity Committee on the findings. About ATP Oil Houston, Tex.-based ATP Oil & Gas Corporation is an international offshore oil and gas development and production company focused in the Gulf of Mexico, Mediterranean Sea and North Sea. ATP Oil & Gas filed a Chapter 11 petition (Bankr. S.D. Tex. Case No. 12-36187) on Aug. 17, 2012. Attorneys at Mayer Brown LLP, serve as bankruptcy counsel. Munsch Hardt Kopf & Harr, P.C., is the conflicts counsel. Opportune LLP is the financial advisor and Jefferies & Company is the investment banker. Kurtzman Carson Consultants LLC is the claims and notice agent. Filings with the Bankruptcy Court and claims information are available at http://www.kccllc.net/atpog ATP disclosed assets of $3.6 billion and $3.5 billion of liabilities as of March 31, 2012. Debt includes $365 million on a first-lien loan where Credit Suisse AG serves as agent. There is $1.5 billion on second-lien notes with Bank of New York Mellon Trust Co. as agent. ATP's other debt includes $35 million on convertible notes and $23.4 million owing to third parties for their shares of production revenue. Trade suppliers have claims for $147 million, ATP said in a court filing. An official committee of unsecured creditors has been appointed in the case. Evan R. Fleck, Esq., at Milbank, Tweed, Hadley & McCloy, in New York, represents the Creditors Committee as counsel. ATP OIL: Amends Schedules of Assets and Liabilities --------------------------------------------------- ATP Oil & Gas Corporation filed with the U.S. Bankruptcy Court for the Southern District of Texas an amendment of its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property N/A B. Personal Property $2,964,975,932 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $2,032,708,051 E. Creditors Holding Unsecured Priority Claims $9,921 F. Creditors Holding Unsecured Non-priority Claims $754,946,327 ----------- ----------- TOTAL $2,964,975,932 $2,787,664,300 The Debtor disclosed $3,249,576,978 in total assets and $2,278,831,445 in total liabilities in a prior iteration of the schedules. A copy of the amended schedules is available for free at: http://bankrupt.com/misc/ATP_OIL_sal_amended.pdf About ATP Oil Houston, Tex.-based ATP Oil & Gas Corporation is an international offshore oil and gas development and production company focused in the Gulf of Mexico, Mediterranean Sea and North Sea. ATP Oil & Gas filed a Chapter 11 petition (Bankr. S.D. Tex. Case No. 12-36187) on Aug. 17, 2012. Attorneys at Mayer Brown LLP, serve as bankruptcy counsel. Munsch Hardt Kopf & Harr, P.C., is the conflicts counsel. Opportune LLP is the financial advisor and Jefferies & Company is the investment banker. Kurtzman Carson Consultants LLC is the claims and notice agent. Filings with the Bankruptcy Court and claims information are available at http://www.kccllc.net/atpog ATP disclosed assets of $3.6 billion and $3.5 billion of liabilities as of March 31, 2012. Debt includes $365 million on a first-lien loan where Credit Suisse AG serves as agent. There is $1.5 billion on second-lien notes with Bank of New York Mellon Trust Co. as agent. ATP's other debt includes $35 million on convertible notes and $23.4 million owing to third parties for their shares of production revenue. Trade suppliers have claims for $147 million, ATP said in a court filing. An official committee of unsecured creditors has been appointed in the case. Evan R. Fleck, Esq., at Milbank, Tweed, Hadley & McCloy, in New York, represents the Creditors Committee as counsel. BEALL CORP: Obtains Secured Financing to Pay Insurance Premiums --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Oregon authorized debtor Beall Corporation to obtain postpetition financing from Imperial Credit Corporation to finance the payment of premiums to be paid upon Debtor's insurance policies. The Debtor is authorized to grant Imperial a first priority security interest in the Policies including: (1) all money that is or may become due under the financing agreement because of a loss under the policies that reduces unearned premiums; (2) any return of premiums or unearned premiums under the policies; and (3) any dividends that may become due debtor in connection with the policies. In the event that returned or unearned premiums or other amounts due under the policies are insufficient to pay the total amount owing by Debtor to Imperial, any remaining amount owing to Imperial, including reasonable attorneys' fees and costs, will be an allowed claim in the Debtor's case with priority as an administrative expense pursuant to Section 503(b)(1) of the Bankruptcy Code. The lien granted to Imperial in connection with the policies will be senior to any security interests and/or liens in the Policies granted to any other secured creditors in the Debtor's case. About Beall Corp. Portland, Oregon-based Beall Corporation, a manufacturer of lightweight, efficient, and durable tanker trucks, trailers and related products, filed a Chapter 11 bankruptcy petition (Bankr. D. Ore. Case No. 12-37291) on Sept. 24, 2012, estimating at least $10 million in assets and liabilities. Founded in 1905, Beall has four factories and nine sale branches across the U.S. The Debtor has 285 employees, with an average weekly payroll of $300,000. Judge Elizabeth L. Perris presides over the case. The Debtor has tapped Tonkon Torp LLP as counsel. The Debtor disclosed $14,015,232 in assets and $28,791,683 in liabilities as of the Chapter 11 filing. Robert D. Miller Jr., the U.S. Trustee for Region 18, appointed six members to the official committee of unsecured creditors. Ball Janik LLP represents the Committee. BENADA ALUMINUM: Feb. 6 Combined Hearing on Plan Set ---------------------------------------------------- The U.S. Bankruptcy Court for the Middle District of Florida will convene a combined hearing to consider confirmation of Benada Aluminum Products LLC's Reorganization Plan dated Nov. 29, 2012, and approval of the explanatory Disclosure Statement at hearing on Feb. 6, 2013 at 10:15 a.m. The bankruptcy judge earlier gave conditional approval to the Disclosure Statement. Creditors and other parties in interest will file with the clerk their written acceptances or rejections of the plan (ballots) no later than seven days before the date of the Confirmation Hearing, which date will also be the last day for the filing of objections to disclosure or confirmation. In accordance with Local Bankruptcy Rule 3018?1, the Debtor will file a ballot tabulation no later than four days before the date of the Confirmation Hearing. As reported in the TCR on Dec. 27, 2012, under the Plan, holders of allowed secured claims (except FTL Capital) will retain their respective liens on the Debtor's real and personal property and be paid in full, with interest, over a period of up to five years, as the case may be. Holders of allowed secured tax claims will retain their statutory liens on the Debtor's personal and real property and will be paid in full, with interest accruing at the Statutory Rate (as defined in the Plan), over a period of five years from the Petition Date. Holders of allowed general unsecured claims will be paid 100% of their allowed claims with interest, based on monthly payments of $20,000, but may also receive additional quarterly payments equal to 40% of the Debtor's quarterly EBITDA. Membership Interests will be wiped out and re-vested 100% with FTL Capital, in exchange for the extinguishment of its Allowed Secured Claim (Pre-Petition). A copy of the disclosure statement is available for free at: http://bankrupt.com/misc/BENADA_ALUMINUM_ds.pdf About Benada Benada Aluminum Products LLC 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. 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 disclosed $22,009,272 in assets and $11,698,426 in liabilities as of the Chapter 11 filing. Wells Fargo is represented by Michael Demont, Esq., and Jay Smith, Esq., at Smith Hulsey & Busey, in Jacksonville, Florida. FTL Capital is represented by Christopher J. Lawhorn, Esq., at Bryan Cave LLP in St. Louis, Missouri. Triton Capital Partners Ltd. serves as exclusive financial advisor and investment banker with respect to providing assistance with turnaround management. The Debtor was authorized by the bankruptcy judge at a Sept. 25, hearing to sell an aluminum extrusion press for $2.9 million to Tubelite Inc. BIG M: To Try Selling Stores as Going Concern --------------------------------------------- Big M Inc., the operator of 129 women's clothing stores in eight states under the names Annie sez, Mandee and Afaze, will attempt to sell the business as a going concern, according to Jay Indyke, whose firm Cooley LLP was selected last week to represent the official creditors' committee, Bloomberg News reported. Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that a hearing is scheduled on Jan. 24 in U.S. Bankruptcy Court in Newark, New Jersey, for final approval of $13.2 million in secured financing. The judge gave interim approval for the loan earlier this month. About Big M Totowa, New Jersey-based Big M, Inc., owner of Mandee, Annie sez, and Afazxe Stores, filed a Chapter 11 petition (Bankr. D.N.J. Case No. 13-10233) on Jan. 6, 2013 with Salus Capital Partners, LLC, funding the Chapter 11 effort. The Mandee brand is a juniors fashion retailer with 84 stores in Illinois and along the East Coast. Annie sez is a discount department-store retailer for women with 35 stores. Afaze is 10- store jewelry and accessory chain. Kenneth A. Rosen, Esq., at Lowenstein Sandler LLP, in Roseland, serves as counsel to the Debtor. The Debtor estimated up to $100 million in both assets and liabilities. BION ENVIRONMENTAL: Presents at Noble Financial Conference ---------------------------------------------------------- Craig Scott, Bion Environmental Technologies, Inc.'s Vice President - Capital Markets, was slated to present at "NINE" - Noble Financial Capital Markets' Ninth Annual Equity Conference at the Hard Rock Hotel in Hollywood, Florida, on Jan. 22. At the time of the presentation, a live audio and high-definition video webcast of Bion's presentation and a copy of the presentation materials will be available on the Company's Web site, http://www.biontech.com/, or through the Noble Financial Web sites: http://www.noblefcm.com/, or http://www.nobleresearch.com/NINE/home.htm The webcast and presentation will also be archived on Bion's Website for 90 days following the event. About Bion Environmental Bion Environmental Technologies Inc.'s patented and proprietary technology provides a comprehensive environmental solution to a significant source of pollution in US agriculture, large scale livestock facilities known as Confined Animal Feeding Operations. Bion's technology produces substantial reductions of nutrient releases (primarily nitrogen and phosphorus) to both water and air (including ammonia, which is subsequently re-deposited to the ground) from livestock waste streams based upon the Company's operations and research to date (and third party peer review). The Company reported a net loss applicable to the Company's common stockholders of $7.35 million on $0 of revenue for the year ended June 30, 2012, compared with a net loss applicable to the Company's common stockholders of $7.54 million on $0 of revenue for the same period during the prior year. The Company's balance sheet at Sept. 30, 2012, showed $8.26 million in total assets, $9.72 million in total liabilities, $19,900 million in Series B Redeemable Convertible Preferred stock, and a $1.47 million total deficit. GHP Horwath, P.C., in Denver, Colorado, issued a "going concern" qualification on the consolidated financial statements for the fiscal year ended June 30, 2012. The independent auditors noted that the Company has not generated revenue and has suffered recurring losses from operations which raise substantial doubt about its ability to continue as a going concern. BLACK CROW: Consummates Plan Year After Confirmation ---------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that although Black Crow Media Group LLC needed a year, the closely held owner of 22 radio stations implemented the Chapter 11 reorganization plan on Jan. 1 that the bankruptcy court in Jacksonville, Florida, had approved by signing a confirmation order more than a year ago. In December 2011, the Bankruptcy Court confirmed the Debtor's Chapter 11 reorganization plan. The Plan was revised in November 2011 to incorporate a settlement approved in August where Paul C. Stone purchased the claim of secured lender General Electric Capital Corp. Along with the purchase, Black Crow agreed that Mr. Stone has a $20 million secured claim and a $19 million unsecured claim. The Plan called for Mr. Stone to make a $2 million loan upon confirmation in exchange for 80% of the economic rights and 49% of the equity. During the next year, his equity interest would increase to 80%. The Plan also provided for priority tax claims to be paid over five years. General unsecured creditors with $20.7 million in claims were in line to receive $130,000 collectively, for a projected recovery not exceeding 1%. About Black Crow Daytona Beach, Florida-based Black Crow Media Group, LLC, owns and operates 17 FM and 5 AM radio stations in Daytona Beach, Live Oak, Valdosta, Huntsville, Alabama, and Jackson, Tennessee. Black Crow filed for Chapter 11 protection two days before a hearing in U.S. district court where GECC was seeking appointment of a receiver following default on term loans and a revolving credit. GECC was owed $38.9 million at the outset of the reorganization. The Company filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 10-00172) on Jan. 11, 2010. The Company's affiliates -- Black Crow Media, LLC, et al. -- also filed separate Chapter 11 petitions. H. Jason Gold, Esq., Valerie P. Morrison, Esq., and Dylan G. Trache, Esq., at Wiley Rein LLP, in McLean, Virginia, serve as the Debtors' counsel. Mariane L. Dorris, Esq., and R. Scott Shuker, Esq., at Latham, Shuker, Eden & Beaudine, LLP, have been tapped as co-counsel. Protiviti Inc. is the Debtors' financial advisor. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. Brian G. Rich, Esq., and Douglas Bates, Esq., at Berger Singerman, P.A., represent the Official Committee of Unsecured Creditors. Black Crow disclosed $14,661,198 in assets and $48,830,319 in liabilities as of the Chapter 11 filing. CARL'S PATIO: Files for Chapter 11 to Sell to Insiders ------------------------------------------------------ Carl's Patio, Inc., a merchandiser of upscale outdoor furniture and accessories in the U.S., sought Chapter 11 protection (Bankr. D. Del. 13-10102) on Jan. 21, 2013, and immediately announced a deal to sell the business to a company formed by the existing owner. Carl's Patio and its debtor-affiliates are in the process of completing an extensive marketing process for the sale of their business. The Debtors have entered into a stalking horse agreement with a potential purchaser, an affiliate of Weinberg Capital Group, an Ohio-based private investment firm. The Debtors are facing severe liquidity issues as a result of, among other things: (i) a recent downturn in target markets, in part due to general economic uncertainty and volatility in financial markets, (ii) increased costs, (iii) increasing inventory and merchandising challenges, (iv) increased competition and (v) over commitment to direct imports requiring long lead times for new inventory. As a result, the Debtors have been unable to meet various financial and other covenants with their secured lender and do not have the liquidity needed to meet ongoing payment and operating obligations. The Debtors have been on a cash on delivery, cash in advance of delivery, or cash upon order basis with suppliers since August 2012. Pretax net income was $912,324 on net sales of $34.3 million in fiscal year 2011. Through Nov. 30, 2012, the Debtors generated a net loss of $1.8 million on net sales of $29.9 million, a 5.6% decline in sales. Carl's Patio estimated total assets and total debts of $10 million to $50 million. The Debtor owes $2.19 million on a secured revolver, and $3.01 million on a term loan from Fifth Third. The Debtor also has $600,000 of subordinated debt. Deal With Insiders In August 2012, the Debtors reached out to large unsecured creditors in an attempt to negotiate an out-of-court restructuring. But the creditor group did not support the Debtors' efforts. Accordingly, the Debtor opted to market the assets. Carl's Patio Acquisition LLC, an entity formed by Weinberg Capital Group, has agreed to purchase virtually all of the Debtors' assets for $4,150,000, absent higher and better offers. Weinberg Capital is partially owned by Ronald E. Weinberg. Mr. Weinberg is a former director of the Debtors and an entity that he partially owns, WBG Partners V, LLC, is the sole shareholder of the Debtors. Mr. Weinberg resigned from all positions within the Debtors' corporate structure effective Dec. 18, 2012. In addition, Paul Otowchits, the Debtors' COO, is an investor in the purchaser. The purchaser has submitted a deposit in the amount of 15% of the purchase price. The Debtors have filed a motion seeking approval of the bid procedures and bid protections for the stalking horse bidder. The Debtors seek an early February hearing on the motion. The proposed procedures provide for an opportunity for other interested parties to perform necessary diligence and submit qualified bids. The Debtors contemplate this timeline: Event Date ----- ---- Bidding Procedures Hearing 14 Days of the Petition Date Deadline for Competing Bids 3 Days before the sale Hearing Auction Date 2 Days before the sale hearing Sale Hearing 45 Days of the Petition Date Pursuant to their Asset Purchase Agreement, the stalking horse may terminate the APA if an order approving the sale has not been entered by March 8. The Debtor has agreed to reimburse the purchaser for reasonable expenses in an amount not to exceed $95,000. Underperforming Stores The Debtors historically operated retail stores in California and Florida. Prepetition, the Debtors closed and exited five underperforming retail locations in California and four locations in Florida. The Debtors filed a motion to reject the leases associated with these closed locations. The Debtors are also rejecting a contract between Debtor Carl's Patio West, Inc. and Innovative Delivery Systems, Inc. About Carl's Patio Founded in 1993, Carl's Patio claims to be a leading retailer of upscale outdoor furniture and accessories. The company operates 10 retail locations and a warehouse in South Florida. The company has 68 employees. The company leases all its locations and do not own any real property. CARL'S PATIO: Has $3.7-Mil. of DIP Financing From Fifth Third ------------------------------------------------------------- Carl's Patio, Inc., and its affiliates seek interim and final orders allowing them to obtain DIP financing from its existing lender, Fifth Third Bank. Fifth Third has agreed to provide a line of credit facility in an aggregate amount of $3,701,902, of which $1,516,008 will be available upon entry of an interim approval of the Dip financing. The DIP facility will mature on March 8, 2013. Interest rate would be LIBOR Rate plus 6% per annum. The financing fee to Fifth Third is $55,000. The DIP facility contains sale milestones. * a Feb. 4, 2013 deadline to obtain approval of the bidding procedures; * a March 4, 2013 deadline to obtain approval of the sale of the assets; * a March 8, 2012 deadline to close the sale. The Debtors will seek final approval of the DIP Credit Agreement, including a lien on avoidance actions and a release and waiver of certain rights in favor of Fifth Third that are conditions precedent to further draws on the DIP Credit Agreement, at a subsequent final hearing. Absent the financing provided for in the DIP Credit Agreement, the Debtors will soon not be able to meet their direct operating expenses and would face the prospect of a complete cessation of operations. Fifth Third will have the right to "credit bid" the amount of its claims during any sale of substantially all of the Debtors' assets. The Debtors will be permitted to use cash collateral. The Debtors will grant Fifth Third replacement liens and superpriority claims as adequate protection. About Carl's Patio Founded in 1993, Carl's Patio claims to be a leading retailer of upscale outdoor furniture and accessories. The company operates 10 retail locations and a warehouse in South Florida. The company has 68 employees. The company leases all its locations and do not own any real property. Carl's Patio, Inc. and its affiliates sought Chapter 11 protection (Bankr. D. Del. 13-10102) on Jan. 21, 2013, and immediately conveyed plans to sell the business to Weinberg Capital, absent higher and better offers. Carl's Patio estimated total assets and total debts of $10 million to $50 million. The Debtor owes $2.19 million on a secured revolver, and $3.01 million on a term loan from Fifth Third. The Debtor also has $600,000 of subordinated debt. CARL'S PATIO: Proposes Epiq as Claims and Notice Agent ------------------------------------------------------ Carl's Patio, Inc., and its affiliates seek Court approval to hire Epiq Bankruptcy Solutions, LLC as claims and noticing agent to assume full responsibility for the distribution of notices and maintenance, processing and docketing of proofs of claim in the Chapter 11 cases. The Debtors have not yet filed their schedules of assets and liabilities but anticipate that there will be in excess of 200 entities to be noticed. The Debtors reviewed engagement proposals from two other claims agents to ensure a competitive process. Epiq will charge the Debtor at rates comparable to those charged by other providers of similar services: Position Discounted Rate -------- --------------- Clerical $30 to $45 Case Manager $60 to $95 IT/ Programming $70 to $135 Senior Case Manager / Consultant $100 to $140 Senior Consultant $160 to $195 For its noticing services, Epiq wil charge $50 per 1,000 e-mails, and $0.10 per page for facsimile noticing. For database maintenance, the firm will charge $0.10 per record per month, with fees for the first three months waived. About Carl's Patio Founded in 1993, Carl's Patio claims to be a leading retailer of upscale outdoor furniture and accessories. The company operates 10 retail locations and a warehouse in South Florida. The company has 68 employees. The company leases all its locations and do not own any real property. Carl's Patio, Inc. and its affiliates sought Chapter 11 protection (Bankr. D. Del. 13-10102) on Jan. 21, 2013, and immediately conveyed plans to sell the business to Weinberg Capital, absent higher and better offers. Carl's Patio estimated total assets and total debts of $10 million to $50 million. The Debtor owes $2.19 million on a secured revolver, and $3.01 million on a term loan from Fifth Third. The Debtor also has $600,000 of subordinated debt. CARL'S PATIO: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Lead Debtor: Carl's Patio, Inc. 301 Camino Gardens Boulevard, Suite # 101 Boca Raton, FL 33432 Bankruptcy Case No.: 13-10102 Chapter 11 Petition Date: January 21, 2013 Court: U.S. Bankruptcy Court District of Delaware (Delaware) Affiliates that simultaneously filed for Chapter 11: Debtor Case No. ------ -------- Carl's Patio West, Inc. 13-10103 Terrace 436, Inc. 13-10104 About the Debtor: Founded in 1993, Carl's Patio claims to be a leading retailer of upscale outdoor furniture and accessories. The company operates 10 retail locations and a warehouse in South Florida. The company has 68 employees. The company leases all its locations and do not own any real property. Debtors' Counsel: Charlene D. Davis, Esq. BAYARD, P.A. 222 Delaware Avenue, Suite 900 P.O. Box 25130 Wilmington, DE 19899 Tel: (302) 655-5000 Fax: (302) 658-6395 E-mail: bankserve@bayardlaw.com - and ? Justin R. Alberto, Esq. BAYARD, P.A. 222 Delaware Avenue, Suite 900 P.O. Box 25130 Wilmington, DE 19899 Tel: (302) 429-4226 Fax: (302) 658-6395 E-mail: jalberto@bayardlaw.com Debtors' Financial Advisor: ALLIANCE MANAGEMENT Debtors' Claims and Noticing Agent: EPIQ BANKRUPTCY SOLUTIONS, LLC Lead Debtor's Estimated Assets: $10,000,001 to $50,000,000 Lead Debtor's Estimated Debts: $10,000,001 to $50,000,000 The petitions were signed by Jason Katz, authorized representative, secretary and treasurer. Carl's Patio, Inc., et al.'s Consolidated List of Their 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Woodard Trade Debt $2,168,380 3401 W. Trinity Boulevard Grand Prairie, TX 75050 Jeff Baker Executory Contract - $950,000 6810 North State Road 7 Consulting Coconut Creek, FL 33073 Weinberg Bell Subordinate Loan $699,649 5005 Rockside Road, Suite 110 Cleveland, OH 44131 Carls Furniture, Inc. Seller Financing $500,000 6810 North State Road 7 Note Coconut Creek, FL 33073 Lloyd/Flanders Trade Debt $444,746 3010 Tenth Street P.O. Box 550 Menominee, MI 49858 Woodard Landgrave Trade Debt $440,669 401 W. Trinity Boulevard Grand Prairie, TX 75050 Krebs, LLC Landlord $183,001 Internal Revenue Service Taxes $154,943 Kohrman Jackson & Krantz Professional Services $140,214 Les Jardins Trade Debt $106,123 Agio Trade Debt $83,827 Brown Jordan Trade Debt $82,311 Tigers Global Logistics Executory Contract - $77,391 Delivery Rogers Cushions R31 Trade Debt $62,718 Howard Wershbale & Co. Professional Services $54,825 Galtech Trade Debt $53,865 Gloster Trade Debt $51,588 Agoura Design Landlord $48,363 Design Center of the Americas Landlord $47,767 Century Patio Trade Debt $45,347 CHRIST HOSPITAL: Employs George Popko as Liquidating Officer ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of New Jersey has authorized Christ Hospital to employ George Popko as liquidating officer to the Debtor, nunc pro tunc to Oct. 4, 2012. Mr. Popko, who will be paid $225 per hour, has agreed to: 1. coordinate the Debtor's advisors and professionals in acting on behalf of the Debtor and be authorized to sign documents on behalf of the Debtor. 2. assist with preparation with the preparation and completion of certain external reporting requirements of the Debtor to file on a timely basis, including, without limitation, Medicare and Medicaid Cost Reports; State of N.J. Cost filings; Federal and State Tax filings; Pension Filings; and other reports as needed by the Debtor. 3. assist as directed by the Debtor in the preparation of financial statements, and financial reports as needed. 4. assist the Debtor in negotiations with its creditors, as requested. 5. act as a liaison between the board of trustees or the executive committee of the Debtor, and various parties in interest, including, without limitation, legal counsel, financial advisors, experts, the bankruptcy court, and other parties-in-interest. About Christ Hospital Christ Hospital filed for Chapter 11 bankruptcy (Bankr. D. N.J. Case No. 12-12906) on Feb. 6, 2012. Christ Hospital, founded in 1872 by an Episcopalian priest, is a 367-bed acute care hospital located in Jersey City, New Jersey at 176 Palisade Avenue, serving the community of Hudson County. The Debtor is well-known for its broad range of services from primary angioplasty for cardiac patients to intensity modulated radiation therapy for those battling cancer. Christ Hospital is the only facility in Hudson County to offer IMRT therapy, which is the most significant breakthrough in cancer treatment in recent years. Christ Hospital filed for Chapter 11 after an attempt to sell the assets fell through. Judge Morris Stern presides over the case. Lawyers at Porzio, Bromberg & Newman, P.C., serve as the Debtor's counsel. Alvarez & Marsal North America LLC serves as financial advisor. Logan & Company Inc. serves as the Debtor's claim and noticing agent. The Health Professional and Allied Employees AFT/AFI-CIO is represented in the case by Mitchell Malzberg, Esq., at Mitnick & Malzberg P.C. Attorneys at Sills, Cummis & Gross, P.C., represent the Official Committee of Unsecured Creditors. CHURCH STREET HEALTH: Schedules March 6 Confirmation ---------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Church Street Health Management LLC scheduled a confirmation hearing on March 6 for approval of a liquidating Chapter 11 plan. According to the report, the disclosure statement approved last week by the U.S. Bankruptcy Court in Nashville, Tennessee, tells most creditors they will recover less than 1% on their claims. The plan, the report relates, is designed to provide a framework for former patients to recover from insurance coverage should there be a settlement in class-action suits. The provider of malpractice insurance is denying responsibility for covering the claims. The Debtor's dental care business was sold to existing first-lien lenders in exchange for $25 million in debt. About Church Street Church Street Health Management, LLC, which provided management services for 67 dental practices in 22 states, filed a Chapter 11 petition (Bankr. M.D. Tenn. Case No. 12-01573) in Nashville, Tennessee, on Feb. 20, 2012. The following day, four affiliates, Small Smiles Holding Company, LLC, Forba NY, LLC, EEHC, Inc., and Forba Services, LLC, filed their Chapter 11 petitions (Case Nos. 12-01574 to 12-01577). As of the Petition Date, the Debtors' assets have book value of $895 million, with debt totaling $303 million. There is about $131.5 million owing on first-lien obligations, plus $25.6 million on a second-lien obligation. There is an additional $152 million on three subordinated debts. The company's finances are structured to comply with Islamic Shariah financing regulations. In the Chapter 11 cases, the Debtors have engaged Waller Lansden Dortch & Davis, LLP as bankruptcy counsel, and Alvarez & Marsal Healthcare Industry Group, LLC, as financial and restructuring advisor. Martin McGahan, a managing director at A&M, will serve as chief restructuring officer of Church Street. Morgan Joseph TriArtisan, LLC, is the investment banker. Garden City Group is the claims and notice agent. Garrison Investment Group is providing funding for the Chapter 11 case. The credit agreement will provide the Debtor with up to an aggregate principal amount of $12 million in a revolving credit facility. Church Street Health Management LLC changed its name as a result of the sale of the business to existing first-lien lenders in exchange for $25 million in debt. The new name for the company in Chapter 11 is CS DIP LLC. The U.S. Trustee for Region 8 removed two creditors from the Official Unsecured Creditors Committee. Through the sale of assets approved by the Court, these two members no longer have debts against the Debtors. The Committee tapped Gilbert LLP as special insurance and mass tort counsel. CLINICA REAL: Court Approves Mahaffy as Special Counsel ------------------------------------------------------- Keith Michael Stone sought and obtained approval from the U.S. Bankruptcy Court to employ Mahaffy Law Firm as special counsel to represent the Debtor in matters pertaining to lawsuits filed in Maricopa County, Arizona by State Farm Automobile Insurance and State Farm Fire. Keith Michael Stone attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. Steven C. Mahaffy's fees are $295 per hour. The firm's rates are: Professional Rates ------------ ----- Attorneys $250/hr Senior Attorneys $290/hr Paralegal $60-90/hr About Clinica Real Clinica Real, LLC, dba Clinica Real Rehabilitation & Chiropractic, filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 12-20451) in Phoenix, Arizona, on Sept. 13, 2012. Clinica Real, doing business as Clinica Real Rehabilitation & Chiropractic, disclosed $10.5 million in assets and $29.8 million in liabilities. The Debtor has no real property. Its largest asset is an unliquidated claim against State Farm Mutual Automobile Insurance Co. and State Farm Fire & Casualty Co., which the Debtor valued at $9.75 million. Most of the claims against the Debtor are unsecured. State Farm has an unsecured claim of $29 million, which the Debtor says is disputed. Judge Sarah Sharer Curley presides over the case. Mark J. Giunta, Esq., serves as the Debtor's counsel. The petition was signed by Keith M. Stone, member. Keith Michael Stone filed a separate Chapter 11 petition (Bankr. D. Ariz. Case No. 12-20452) on Sept. 13, 2012. Mr. Stone is represented by Cindy L. Greene, Esq., at Carmichael & Powell, P.C., in Phoenix, Arizona. The cases are jointly administered under Case No. 12-20451. CLINICA REAL: Stay Lifted for State Court Litigation to Proceed --------------------------------------------------------------- The Hon. Redfield T. Baum of the U.S. Bankruptcy Court for the District of Arizona lifted the automatic stay in the Chapter 11 cases of Clinica Real, LLC, and Keith Michael Stone, to solely allow a state court litigation to proceed to trial no earlier than Sept. 4, 2013. The Court order was in connection to State Farm Mutual Automobile Insurance Company and State Farm Fire & Casualty Company's motion (I) dismissing the cases for cause, or (II) in the alternative, for abstention, dismissing or suspending proceedings, and/or (III) granting relief from the automatic stay to allow state court litigation to proceed. Additionally, State Farm and the Debtors must (i) participate in a one-day mediation prior to May 1, 2013, with the costs of the mediator to be split evenly between the parties, and (ii) confer and agree on the mediator for the mediation; if State Farm and the Debtors cannot agree on the mediator, the parties must notify the Court promptly, and the Court will appoint a mediator. About Clinica Real Clinica Real, LLC, dba Clinica Real Rehabilitation & Chiropractic, filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 12-20451) in Phoenix, Arizona, on Sept. 13, 2012. Clinica Real, doing business as Clinica Real Rehabilitation & Chiropractic, disclosed $10.5 million in assets and $29.8 million in liabilities. The Debtor has no real property. Its largest asset is an unliquidated claim against State Farm Mutual Automobile Insurance Co. and State Farm Fire & Casualty Co., which the Debtor valued at $9.75 million. Most of the claims against the Debtor are unsecured. State Farm has an unsecured claim of $29 million, which the Debtor says is disputed. Judge Sarah Sharer Curley presides over the case. Mark J. Giunta, Esq., serves as the Debtor's counsel. The petition was signed by Keith M. Stone, member. The U.S. Trustee has not appointed an official committee. COMMUNITY FINANCIAL: Sagus Financial Discloses 9% Equity Stake -------------------------------------------------------------- In a Schedule 13G filing with the U.S. Securities and Exchange Commission, Sagus Financial Fund, LP, and its affiliates disclosed that, as of Jan. 18, 2013, they beneficially own 500,000 shares of common stock of Community Financial Shares, Inc., representing 9% of the shares outstanding. A copy of the filing is available for free at http://is.gd/l9r7Za About Community Financial Glen Ellyn, Illinois-based Community Financial Shares, Inc., is a registered bank holding company. The operations of the Company and its banking subsidiary consist primarily of those financial activities common to the commercial banking industry. All of the operating income of the Company is attributable to its wholly- owned banking subsidiary, Community Bank-Wheaton/Glen Ellyn. BKD, LLP, in Indianapolis, Indiana, issued a going concern qualification on the consolidated financial statements for the year ended Dec. 31, 2011. The independent auditors noted that the Company has suffered recurring losses from operations and is undercapitalized. The Company reported a net loss of $11.01 million on net interest income (before provision for loan losses) of $10.77 million in 2011, compared with a net loss of $4.57 million on net interest income (before provision for loan losses) of $10.40 million in 2010. The Company's balance sheet at Sept. 30, 2012, showed $334.17 million in total assets, $328.69 million in total liabilities and $5.48 million in total shareholders' equity. CONQUEST SANTA FE: Has Access to Cash Collateral Until Jan. 31 -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Arizona authorized Conquest Santa Fe, LLC, in a second interim order, to use cash collateral of LPP Mortgage, Ltd., to pay ordinary and necessary, postpetition expenses in the ordinary course of operating its business, through and including Jan. 31, 2013. As adequate protection, LPP is is granted replacement liens in all property acquired and owned by the Debtor on and after the Petition Date. A continued hearing on the Debtor's use of cash collateral will be held on Jan. 29, 2013, at 9:30 a.m. Conquest Santa Fe, LLC, filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 12-24937) in Tucson, Arizona, Nov. 16, 2012, estimating at least $10 million in assets and liabilities. Judge Eileen W. Hollowell presides over the case. Frederick J. Petersen, Esq., and Lowell E. Rothschild, Esq., at Mesch, Clark & Rothschild, P.C., serve as counsel to the Debtor. CONQUEST SANTA FE: Wins OK for Mesch Clark as Counsel ----------------------------------------------------- The U.S. Bankruptcy Court for the District of Arizona authorized Conquest Santa Fe, L.L.C., to employ Mesch, Clark & Rothschild, P.C., as its attorneys. MC&R will render these services: a. To give the Debtor legal advice with respect to its power and duties in the continued operation and management of its properties. b. To take necessary action to recover certain property and money owed to the Debtor, if necessary. c. To represent the Debtor in litigation. d. To prepare on behalf of the Debtor, the necessary applications, answers, complaints, orders, reports, disclosure statement, plan of reorganization, motions, and other legal papers. e. To perform all other legal services that the Debtor deems necessary. The hourly rates of MC&R attorneys and staff who may work on this case and their hourly rates are: Lowell E. Rothschild, Esq. $550 Scott H. Gan, Esq. $450 Frederick J. Petersen, Esq. $425 Partners $300 to $550 Associates $175 to $295 Paralegals $180 Legal Assistants $85 to $115 Law Clerks $100 MC&R does not represent any other entity having an adverse interest in connection with the Debtor's case. About Conquest Santa Fe Conquest Santa Fe, LLC, filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 12-24937) in Tucson, Arizona, Nov. 16, 2012, estimating at least $10 million in assets and liabilities. Judge Eileen W. Hollowell presides over the case. CONQUEST SANTA FE: Taps Walcott & Henry for Litigation ------------------------------------------------------ The U.S. Bankruptcy Court for the District of Arizona authorized Conquest Santa Fe, L.L.C., to employ Walcott & Henry, P.C., as special counsel to the Debtor in pending litigation in the United States District Court of New Mexico, LLP Mortgage, Ltd. v. Conquest Santa Fe, L.L.C., et al., Case No. 12-CV-00260. No compensation will be paid to Walcott & Henry, without application to and approval by the Bankruptcy Court after notice and an opportunity for a hearing. W&H attorneys and staff who may work on the New Mexico Litigation and their hourly rates are: Donald A. Walcott, Esq. $250 Charles V. Henry, Esq. $200 About Conquest Santa Fe Conquest Santa Fe, LLC, filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 12-24937) in Tucson, Arizona, Nov. 16, 2012, estimating at least $10 million in assets and liabilities. Judge Eileen W. Hollowell presides over the case. Frederick J. Petersen, Esq., and Lowell E. Rothschild, Esq., at Mesch, Clark & Rothschild, P.C., serve as counsel to the Debtor. CRYOPORT INC: Westcliff Capital Lowers Equity Stake to 4.2% ----------------------------------------------------------- In an amended Schedule 13G filing with the U.S. Securities and Exchange Commission, Westcliff Capital Management, LLC, and Richard S. Spencer III disclosed that, as of Dec. 31, 2012, they beneficially own 1,642,857 shares of common stock of CryoPort, Inc., representing 4.17% of the shares outstanding. Westcliff Capital previously reported beneficial ownership of 2,956,736 common shares or a 9.99% equity stake as of Dec. 31, 2011. A copy of the amended filing is available for free at: http://is.gd/937FYm About Cryoport Lake Forest, Calif.-based CryoPort, Inc. (OTC BB: CYRX) provides comprehensive solutions for frozen cold chain logistics, primarily in the life science industries. Its solutions afford new and reliable alternatives to currently existing products and services utilized for bio-pharmaceuticals and biologics, including in-vitro fertilization, cell lines, vaccines, tissue and other commodities requiring a reliable frozen solution. As reported in the TCR on June 29, 2012, KMJ Corbin & Company LLP, in Costa Mesa, California, expressed substantial doubt about CryoPort's ability to continue as a going concern. The independent auditors noted that the Company has incurred recurring operating losses and has had negative cash flows from operations since inception. "Although the Company has working capital of $4,024,120 and cash & cash equivalents of $4,617,535 at March 31, 2012, management has estimated that cash on hand, which include proceeds from the offering received in the fourth quarter of fiscal 2012, will only be sufficient to allow the Company to continue its operations only into the fourth quarter of fiscal 2013. These matters raise substantial doubt about the Company's ability to continue as a going concern." The Company's balance sheet at Sept. 30, 2012, showed $2.8 million in total assets, $2.0 million in total liabilities, and stockholders' equity of $776,493. DESERT OASIS: Wells Fargo Plan Appeal Dismissed ----------------------------------------------- Nevada District Judge Miranda M. Du dismissed an appeal by Wells Fargo seeking to overturn Bankruptcy Judge Bruce A. Markell's order confirming Desert Oasis Apartments LLC's Chapter 11 Plan of Reorganization. Judge Du said the appeal is moot. On July 27, 2012, Desert Oasis refinanced its property and paid off the amount owed to Wells Fargo and left in escrow the disputed amount claimed by Wells Fargo, pending the District Court's determination of a separate challenge to another order issued by Judge Markell. Judge Du also denied Desert Oasis' request for costs. The appeal is, CT INVESTMENT MANAGEMENT CO., LLC, Appellant, v. DESERT OASIS APARTMENTS, LLC and TOM GONZALES, Appellees, Case No. 2:12-cv-00370-MMD-VPC (D. Nev.). A copy of Judge Du's Jan. 17, 2013 Order is available at http://is.gd/W7tkN7from Leagle.com. About Desert Oasis Apartments Desert Oasis Apartments LLC owns a garden-style apartment complex situated across the boulevard from the Mandalay Bay Resort. The apartment complex is valued at least $6,500,000. Secured creditor Wells Fargo set a trustee's sale on the apartment complex for May 11, 2011, but Desert Oasis sought bankruptcy protection (Bankr. D. Nev. Case No. 11-17208) the day before the sale. Lenard E. Schwartzer, Esq., at Schwartzer & McPherson Law Firm, serves as the Debtor's bankruptcy counsel. The Company disclosed $18,067,242 in assets and $20,291,316 in liabilities as of the Chapter 11 filing. DUNE ENERGY: Highbridge, et al, to Resell 18.7MM Common Shares -------------------------------------------------------------- Dune Energy, Inc., filed with the U.S. Securities and Exchange Commission a Form S-1 registration statement relating to the resale of up to 18,749,997 shares of common stock, par value $0.001 per share, of Dune Energy, Inc., offered by Simplon Partners, L.P., Highbridge International, LLC, West Face Long Term Opportunities Global Master L.P., et al. The selling stockholders will pay commissions or discounts to underwriters, brokers or dealers in amounts to be negotiated prior to the sale. The Company will not receive any of the proceeds from the sale of the common stock offered by the selling stockholders. The Company's common stock is traded on the OTC Bulletin Board under the symbol "DUNR." On Jan. 15, 2013, the closing price of the Company's common stock on the bulletin board was $1.64. A copy of the prospectus is available for free at: http://is.gd/CSgShY About Dune Energy Dune Energy, Inc. (NYSE AMEX: DNE) -- http://www.duneenergy.com/ -- is an independent energy company based in Houston, Texas. Since May 2004, the Company has been engaged in the exploration, development, acquisition and exploitation of natural gas and crude oil properties, with interests along the Louisiana/Texas Gulf Coast. The Company's properties cover over 90,000 gross acres across 27 producing oil and natural gas fields. The Company reported a net loss of $60.41 million in 2011, compared with a net loss of $75.53 million in 2010. The Company's balance sheet at Sept. 30, 2012, showed $241.08 million in total assets, $118.88 million in total liabilities and $122.19 million in total stockholders' equity. * * * As reported by the TCR on Dec. 27, 2011, Standard & Poor's Ratings Services lowered its corporate credit rating on Dune Energy Inc. to 'SD' (selective default) from 'CC'. "The rating actions follow the company's announcement that it has completed the exchange offer for its 10.5% senior notes due 2012, which we consider a distressed exchange and tantamount to a default," said Standard & Poor's credit analyst Stephen Scovotti. "Holders of $297 million of principle amount of the senior secured notes exchanged their 10.5% senior secured notes for common stock, which in the aggregate constitute 97.0% of Dune's common stock post-restructuring, and approximately $49.5 million of newly issued floating rate senior secured notes due 2016. We consider the completion of such an exchange to be a distressed exchange and, as such, tantamount to a default under our criteria." In the Jan. 2, 2012, edition of the TCR, Moody's Investors Service revised Dune Energy, Inc.'s Probability of Default Rating (PDR) to Caa3/LD from Ca following the closing of the debt exchange offer of the company's 10.5% secured notes. Simultaneously, Moody's upgraded the Corporate Family Rating (CFR) to Caa3 reflecting Dune's less onerous post-exchange capital structure and affirmed the Ca rating on the secured notes. The revision of the PDR reflects Moody's view that the exchange transaction constitutes a distressed exchange. Moody's will remove the LD (limited default) designation in two days, change the PDR to Caa3, and withdraw all ratings. EAGLE POINT: Court Approves Brown Chudleigh as Appraiser -------------------------------------------------------- Critchell Galpin and Eagle Point Developments LLC sought and obtained approval from the U.S. Bankruptcy Court to employ Greg Schuler and Brown, Chudleigh, Schuler, Myers & Associates as appraisers, to assist the Debtors in determining the value of certain assets of the Galpin estate. The firm, among other things, will provide these services: a. appraise certain real estate assets that are collateral for a loan by South Valley Bank & Trust; b. appraise certain real estate assets that are collateral for a loan by Washington Federal Savings & Loan Association; and c. testify, as necessary, regarding (i) the appraisal of US Bank collateral already performed by BCSM and (ii) the appraisals of South Valley Bank & Trust collateral and Washington Federal Savings & Loan Association collateral to be performed by BCSM. The total anticipated cost of the appraisals is $10,250. For hearing preparation and testimony, Mr. Schuler and/or other BCSM members would be paid $175 (for preparation) and $200 per hour (for testimony). The Debtor attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About Eagle Point Developments Eagle Point Developments, in Medford, Oregon, developed the Eagle Point Golf Course, which was built in 1996. Eagle Point filed for Chapter 11 bankruptcy (Bankr. D. Ore. Case No. 12-60353) on Feb. 1, 2012. Judge Thomas M. Renn oversees the case, taking over from Judge Frank R. Alley III. Sussman Shank LLP serves as bankruptcy attorneys. The petition was signed by Arthur Critchell Galpin, managing member. Eagle Point's case is jointly administered with Mr. Galpin's personal bankruptcy case (Bankr. D. Ore. Case No. 12-60362), which is the lead case. In schedules, Mr. Galpin disclosed total assets of $35.7 million and total liabilities of $51.7 million. EDUCATION HOLDINGS: Files Chapter 11 With Prepackaged Plan ---------------------------------------------------------- Education Holdings 1, Inc., just three years after acquiring using borrowed funds the Penn Foster distance career schools for $170 million, sought Chapter 11 protection (Bankr. D. Del. Case No. 13-10101) with a bankruptcy-exit plan negotiated with major debt holders. The Debtor said that, if confirmed, its prepackaged plan of reorganization will right-size its liabilities with future earnings and put the company in a position to grow and develop its underlying business. The Debtor said that agreements reached under the Plan allow the general unsecured creditors to remain unimpaired. The Debtor on the first day of the case filed a motion asking the Bankruptcy Code to schedule a combined hearing on the Plan and the Disclosure Statement in March. The Debtor presented this time- table: Date ---- Voting Record Date 01/01/2013 Commencement of Solicitation 01/09/2013 Voting Deadline 01/17/2013 at 5 p.m. Petition Date 01/21/2013 Notice Record Date 01/22/2013 Publication Deadline 02/01/2013 Objection Deadline 02/28/2013 Reply Deadline 03/05/2013 Confirmation Hearing 03/07/2013 Road to Bankruptcy "The Debtor's decision to commence a Chapter 11 reorganization case was based largely on its current highly leveraged capital structure coupled with recent operating losses in connection with the company's former business, all during the heart of a global economic downturn," Christian G. Kasper, CRO of the Debtor, explains. "Over the past several years, the company has significantly restructured its operations, expanded certain business lines and invested in systems, and infrastructure. These investments and restructuring costs, along with the decrease in the Debtor's business beginning in late 20120 and rising interest costs resulting from the Debtor's highly leveraged capital structure after the Penn Foster Acquisition, have contributed to net losses for the Company of $136.1 million, $51.7 million and $12.4 million for the years 2011, 2010 and 2009, respectively." With the assistance of financial advisors, Alvarez & Marsal North America, LLC, and counsel, DLA Piper (US), the company determined that right-sizing its balance sheet through negotiations with stakeholders is the best alternative. Prepetition, the Debtor solicited votes on the Plan and has obtained unanimous approval by all four voting classes: senior secured claims (Class 1), second lien facility claims (Class 3), senior notes claims (Class 4), and junior notes claims (Class 5). The Prepackaged Plan The primary purpose of the Plan is to effectuate a restructuring of the Debtor's current capital structure in order to align it with the Debtors' operating prospects and provide the Debtor with adequate liquidity. The claims and interests will be treated as follows: Claims/ Class Interests Treatment ----- --------- --------- 1 Senior Secured Claims ($36.3 million Outstanding) Impaired - The senior secured credit agreement will be amended and restated in its entirety by a $36 million exit facility agreement. Recovery: 100% 2 Priority Claims Unimpaired - Claimholders will receive ash equal to the amount of the claim. Recovery: 100% 3 Second Lien Facility Claims ($7 million) Impaired - Second lien claimants will receive $7 million of new second lien notes. Recovery: 100% 4 Senior Notes Claims ($69.4 million plus interest and fees) Impaired - Noteholders will receive 100% of the new senior subordinated notes, new preferred stock with face value of $40 million, and 30% of the new common stock. Recovery: 75.4% 5 Junior Notes Claims ($43.1 million plus interest plus fees) Impaired - Holders of the junior notes will receive 70% of the new common stock. Recovery: Less than 1% 6 General Unsecured Claims Unimpaired - General unsecured creditors will be paid in full in cash. Recovery: 100% 7 Section 510(b) Claims Impaired. Holders won't receive any distributions. Recovery: 0% 8 Old Equity Interests Impaired. Shareholders won't receive anything, and the existing equity interests will be cancelled. Recovery: 0% A copy of the Prepackaged Plan is available for free at: http://bankrupt.com/misc/EH_Prepack_Plan.pdf A copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/EH_Prepack_DS.pdf Settled Suit Andrew Harris, writing for Bloomberg News, noted that Education Holdings 1 Inc., filed for bankruptcy protection only a month after settling a fraud lawsuit with the U.S. Bloomberg recalled that the U.S. Justice Department on Dec. 20 announced the settlement of a suit filed against the company in May in Manhattan federal court. The U.S. claimed that Princeton Review received tens of millions of dollars in federal funds for tutoring services to New York City school children that it didn't provide. The U.S. said the settlement amount is as much as $10 million. Bloomberg noted that the company listed Bain Capital Venture Fund LP of Boston as its biggest equity security holder, with 9.7%; while Falcon Investment Advisors LLC and Sankaty Advisors LLC are the biggest unsecured creditors, with each owed $56.3 million. Liabilities to the Justice Department are "undetermined," according to the filing, Bloomberg said. About the Debtor Education Holdings 1, Inc., is a holding company that through its Penn Foster division, operates the oldest and one of the largest distance career schools in the world - generating over 150,000 new enrollments annually for its accredited, career-focused, online degree and vocational programs in the U.S., Canada and over 150 other countries in the world. Penn Foster Education Group, Inc. nor Penn Foster Inc. are not included in the Chapter 11 filings. In March 2012, Education Holdings sold its higher education readiness (HER) division, including the name and brand the Princeton Review, to an affiliate of Charlesbank Capital Partners. EDUCATION HOLDINGS: Proposes $7-Million of DIP Financing -------------------------------------------------------- Education Holdings 1, Inc., seeks approval from the Bankruptcy Court to use cash collateral and enter into a senior secured superpriority debtor-in-possession credit agreement, dated Jan. 21, 2013, with General Electric Capital Corporation, as administrative agent and collateral agent, and other participating prepetition senior secured lenders. Pursuant to the DIP agreement, the Debtor may borrow certain postpetition funds under a revolving credit facility in an aggregate principal amount not to exceed $7 million. The lenders have agreed to make available up to $4 million of DIP financing to the Debtor prior to final approval of the DIP financing. Proceeds will be used to both fund the restructuring costs for the Debtor as well as fund the operations of Penn Foster, Inc. All DIP obligations will mature 90 days following the Petition Date. The Debtor is required to obtain a combined order approving the Plan and the Disclosure Statement within 60 days after the Petition Date, and have the effective date of the Plan occur within 90 days following the Petition Date. The Debtor first engaged in negotiations with the prepetition noteholders but the noteholders indicated that they would not consent to being primed. As adequate protection for any diminution in value of their collateral, the senior secured lenders will receive, among other things, current payment of interest ad the non-default contract rate, and payment of out-of-pocket fees. Junior lenders will receive payment of out-of-pocket fees and replacement liens. About Education Holdings 1 Education Holdings 1, Inc., is a holding company that through its Penn Foster division, operates the oldest and one of the largest distance career schools in the world - generating over 150,000 new enrollments annually for its accredited, career-focused, online degree and vocational programs in the U.S., Canada and over 150 other countries in the world. In March 2012, Education Holdings sold its higher education readiness (HER) division, including the name and brand the Princeton Review, to an affiliate of Charlesbank Capital Partners. Education Holdings, just three years after acquiring using borrowed funds the Penn Foster distance career schools for $170 million, sought Chapter 11 protection (Bankr. D. Del. Case No. 13- 10101) on Jan. 21, 2013, with a bankruptcy-exit plan negotiated with major debt holders. Penn Foster Education Group Inc., nor Penn Foster Inc., are not included in the Chapter 11 filings. EDUCATION HOLDINGS: To Limit Equity Transfers to Protect NOLs ------------------------------------------------------------- Education Holdings 1, Inc., seeks Bankruptcy Court approval to establish notification and hearing procedures that must be satisfied before certain shareholders may make transfers of, or claims of worthlessness with respect to, equity securities in order to protect the value of the Debtors' net operating tax loss carryforwards. The Debtor expects to report consolidated NOL carryforwards for U.S. federal income tax purposes of $192 million. After accounting for a cancellation of indebtedness income reduction, the Debtor anticipates that it will have remaining NOL, tax carryforwards and possible other tax attributes in an estimated amount of $120 million. The Debtor says that unrestricted trading of shares could adversely affect the Debtor's NOLs if (a) too many 5% or greater blocks of stock are created, or (b) too many shares are added to or sold from those blocks. The proposed procedures will allow the Debtor to closely monitor transfers of the stock. Under the proposed rules, any person who is or becomes a substantial shareholder (holding 4.5% of the shares) must file a declaration of such status. Substantial shareholders are required to write a declaration of any intended transfer of shares. The Debtor estimates that it has 56,578,542 shares of its stock issued and outstanding as of Dec. 31, 2012, with five 5% or more shareholders holding the stock. About Education Holdings 1 Education Holdings 1, Inc., is a holding company that through its Penn Foster division, operates the oldest and one of the largest distance career schools in the world - generating over 150,000 new enrollments annually for its accredited, career-focused, online degree and vocational programs in the U.S., Canada and over 150 other countries in the world. In March 2012, Education Holdings sold its higher education readiness (HER) division, including the name and brand the Princeton Review, to an affiliate of Charlesbank Capital Partners. Education Holdings, just three years after acquiring using borrowed funds the Penn Foster distance career schools for $170 million, sought Chapter 11 protection (Bankr. D. Del. Case No. 13- 10101) on Jan. 21, 2013, with a bankruptcy-exit plan negotiated with major debt holders. Penn Foster Education Group, Inc. nor Penn Foster Inc. are not included in the Chapter 11 filings. EDUCATION HOLDINGS: Case Summary & 15 Top Unsecured Creditors ------------------------------------------------------------- Chapter 11 Debtor: Education Holdings 1, Inc. aka The Princeton Review, Inc. 111 Speen Street Framingham, MA 01701 Bankruptcy Case No.: 13-10101 Chapter 11 Petition Date: January 21, 2013 Court: U.S. Bankruptcy Court District of Delaware Debtor's Counsel: Gregg M. Galardi, Esq. DLA PIPER LLP 919 N. Market Street, 15th floor Wilmington, DE 19801 Tel: 212-335-4640 Fax: 212-884-8680 - and - Stuart M. Brown, Esq. DLA PIPER LLP (US) 919 N. Market Street, Suite 1500 Wilmington, DE 19801 Tel: 302-468-5640 Fax: 302-778-7913 Email: stuart.brown@dlapiper.com Debtor's Financial Advisors: ALVAREZ & MARSAL NORTH AMERICA, LLC Debtor's Claims Agent: GARDEN CITY GROUP, INC., GCG, INC. Attn: Craig Johnson 1985 Marcus Avenue, Suite 200 Lake Success, NY 11042 Tel: 631-470-5000 Represented by: Jeffrey S. Stein THE GARDEN CITY GROUP, INC. 1985 Marcus Avenue, Suite 200 Lake Success, NY 11042 Tel: 631-470-6834 Fax: 631-940-6554 Email: PACERTeam@gardencitygroup.com DIP Lender: GENERAL ELECTRIC CORPORATION Administrative Agent Estimated Assets: $100,000,001 to $500,000,000 Estimated Debts: $100,000,001 to $500,000,000 The petition was signed by Christian G. Kasper, Chief Restructuring Officer. List of Debtor's 15 Largest Unsecured Creditors: Creditor Nature of Claim Claim Amount -------- --------------- ------------ Falcon Investment Advisors LLC Senior & Junior $56,250,000 Attn: John Schnabel - Partner Sub Debt 600 Lexington Ave. New York, NY 10280 Tel: 212-300-0206 Fax: 212-300-0299 E-mail: jschnabel@falconinvestments.com Sankaty Advisors LLC Senior & Junior $56,250,000 Attn: Laki Nomicos - Operating Partner 111 Huntington Ave Boston, MA 02199 Tel: 617-516-2000 Fax: 617-516-2710 George Ross Litigation Undetermined 3587 North Pershing Ave. San Bernardino, CA 92405 Tel: 323-422-2758 ITC Copiers Contractual Undetermined Attn: Daniel Sims - President Obligation 1070 North Batavia #547 Orange, CA 92867 Tel: 714-979-2679 New York Department of Education Litigation Undetermined Attn: Stacey Reeves - Chief Administrator NYC Department of Education 65 Court Street Brooklyn, NY 11201 Tel: 718-935-3280 Fax: 718-935-2726 E-mail: sreeves5@schools.nyc.gov Robinsonday LLC Litigation Undetermined Attn: Peter R. Ginsberg - Counsel Ginsberg and Burgos PLLC 12 East 49th Street New York, NY 10017 Fax: 646-355-0202 E-mail: pginsberg@prglaw.com The Rector, Church-Wardens Lease Undetermined And Vestrymen of Trinity Church in the City of New York Attn: Jason Pizer - Executive Vice President 75 Varick Street New York, NY 10013 Tel: 212-602-0800 Fax: 212-602-0877 United States - Department of Justice Litigation Undetermined Attn: Preet Bharara - U.S. Attorney for the Southern District of New York 86 Chamber Street, 3rd Floor New York, NY 10007 Tel: 212-637-2728 Fax: 212-637-2786 E-mail: preet.bharara@usdoj.gov Goodwin Procter Accounts Payable $65,000 Attn: John Mutkoski - Partner E-mail: jmutkoski@goodwinprocter.com PricewaterhouseCoopers LLP Accounts Payable $15,538 Attn: Bob Moritz-President/CEO E-mail: bobmoritz@us.pwc.com Frontier Communications Accrued Liability $10,708 E*Trade Accounts Payable $8,750 Attn: Sam Houston -- Account Representative E-mail: outsourcing@etrade.com Skadden Arps Slate Meagher & Flom LLP Accounts Payable $6,376 Attn: Earle Yaffa - Managing Partner E-mail: earle.yaffa@skadden.com Harbortown Ports LLC Accounts Payable $5,405 Concur Technologies Inc. Accounts Payable $4,159 ELEPHANT TALK: Signs SDN Contract in Latin American Market ---------------------------------------------------------- Elephant Talk Communications, Corp., has signed a contract to implement the Company's proprietary Software Defined Network platform for an established mobile operator in a major Latin America market. The mobile outsourcing platform will have a capacity for 10 million SIMs. The Company expects the initial migration of approximately one million existing Latin American mobile subscribers to Elephant Talk's proprietary SDN platform to begin in mid-2013. The migration is expected to take several months. Subscribers on Elephant Talk's SDN platform will generate recurring revenue on a per subscriber per month basis. Software Defined Networks are the most efficient way to handle the increasing demands from mobile operators, from small mobile operators to networks carrying tens of millions of SIMs. Elephant Talk, a leader in the development of SDNs, expects an increasing number of mobile networks to convert to these platforms over the next few years. "The Latin American mobile telecom market has been a focus for Elephant Talk. We worked very hard to enter this market," stated Steven van der Velden, Chairman and CEO of Elephant Talk. "Our efforts have been rewarded with the signing of a multi-year contract. We are very proud that our SDN technology was chosen at the completion of a very competitive process." In addition to announcing the Latin American contract, Elephant Talk released preliminary 4Q12 and 2012 results. Preliminary 4Q12 results: - Mobile and Security revenue was approximately $3.4 million, a year-over-year increase of about 76.7% - Mobile and Security revenue accounted for an estimated 51% of total revenue in the fourth quarter, up from 44% and 23% of total revenue in 3Q12 and 4Q11, respectively - Gross Margin (revenue minus cost of services), a non-GAAP measure, increased approximately 69% to about $2.5 million for the fourth quarter representing about 37% of total revenue. Gross Margin for 4Q11 was $1.5 million, accounting for 18% of total revenue Preliminary 2012 results: - Mobile and Security revenue for 2012 almost doubled to approximately $11.5 million from $5.8 million in 2011 - Gross Margin (revenue minus cost of services), a non-GAAP measure, increased approximately 132% to about $8.2 million and represented around 28% of total revenue. Gross Margin for 2011 was $3.5 million accounting for 11% of total revenue Elephant Talk expects to report complete 2012 financial results in March 2013. "We are pleased with Elephant Talk's preliminary fourth quarter mobile and security revenue," stated Steven van der Velden. "The Company remains on track to achieve its first month of positive operational cash flow in early 2013, excluding non-cash expenses and capital expenditures." On Jan. 17, 2013, Steven van der Velden, president and chief executive officer and director of the Company and Patrick Carroll, the chief executive officer of ValidSoft Ltd., the Company's cloud transaction security subsidiary, held a presentation at the 15th Annual Needham & Company Growth Conference in New York City. A copy of the presentation is available at http://is.gd/YPbpHi About Elephant Talk Lutz, Fla.-based Elephant Talk Communications, Inc. (OTC BB: ETAK) -- http://www.elephanttalk.com/-- is an international provider of business software and services to the telecommunications and financial services industry. Elephant Talk reported a net loss of $25.31 million in 2011, a net loss of $92.48 million in 2010, and a net loss of $17.29 million in 2009. The Company reported a net loss of $10.99 million for the six months ended June 30, 2012. The Company's balance sheet at Sept. 30, 2012, showed $42.56 million in total assets, $18.18 million in total liabilities and $24.37 million in total stockholders' equity. EMISPHERE TECHNOLOGIES: Inks 3-Year Contract With CFO M. Garone --------------------------------------------------------------- Emisphere Technologies, Inc., entered into an employment agreement with Michael R. Garone, the Company's vice president, chief financial officer and corporate secretary, effective Jan. 14, 2013. The initial term of the Employment Agreement is three years, and the agreement will automatically renew for additional one-year terms unless either party provides notice of non-renewal to the other party at least six months prior to the commencement of any renewal terms. The Employment Agreement provides for an annual base salary of $265,000, with eligibility to receive an annual bonus of up to $79,500. Pursuant to the Employment Agreement, Mr. Garone received a qualified stock option to purchase up to 40,000 shares of the Company's common stock in accordance with the Company's 2007 Stock Award and Incentive Plan. A copy of the Employment Agreement is available at: http://is.gd/zQlWoO About Emisphere Cedar Knolls, N.J.-based Emisphere Technologies, Inc., is a biopharmaceutical company that focuses on a unique and improved delivery of therapeutic molecules or nutritional supplements using its Eligen(R) Technology. These molecules are currently available or are under development. The Company's balance sheet at Sept. 30, 2012, showed $1.29 million in total assets, $68.14 million in total liabilities and a $66.85 million total stockholders' deficit. McGladrey and Pullen, LLP, in New York City, expressed substantial doubt about Emisphere's ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 31, 2011. The independent auditors noted that the Company has suffered recurring losses from operations and its total liabilities exceed its total assets. EVANS OIL: Court Converts Case to Chapter 7 ------------------------------------------- The U.S. Bankruptcy Court has approved the motion filed by Philip V. Martino, Chapter 11 Trustee of Evans Oil Company LLC, aka Evans Oil Co LLC, to convert the Debtor's Chapter 11 case to liquidation in Chapter 7. All orders authorizing the Debtor to manage individual financial affairs or to continue to do business are rescinded. All committees appointed pursuant to 11 U.S.C Section 1102, if any, are dissolved. All pending hearings in the general case are not cancelled and will proceed as scheduled. Naples, Florida-based Evans Oil Company LLC, aka Evans Oil Co LLC, distributes bulk oil, gas, diesel and lubricant products. Evans Oil, together with affiliates, filed for Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Lead Case No. 11-01515) on Jan. 30, 2011. Attorneys at Hahn Loeser & Parks LLP served as bankruptcy counsel to the Debtors. Garden City Group Inc. acted the claims and notice agent. The Parkland Group Inc. served as restructuring advisor. Evans Oil estimated assets and debts at $10 million to $50 million as of the Chapter 11 filing. In late 2011, Evans Oil attempted to exit bankruptcy under a Chapter 11 reorganization plan. The Debtor proposed that, after the plan effective date, the Reorganized Debtors would be managed by Randy M. Long, the Debtors' sole member and manager, at the direction of the Plan's equity sponsor. In consideration of the investment, the interests in the Reorganized Debtors would be issued solely to the Equity Sponsor. The Plan did not contemplate Mr. Long or any prepetition holder of equity retaining any equity in the Reorganized Debtors. Under the Plan, Fifth Third Plan's secured claim -- to the extent determined at a "valuation motion -- would be unimpaired. Fifth Third's deficiency claim and general unsecured claims would share in an "unsecured creditor distribution pool" of $116,000 on a pro rata basis. A copy of the Disclosure Statement and the Amended Plan is available for free at http://bankrupt.com/misc/evansoil.dkt474.pdf Early in 2012, the Debtor, however, decided to sell the business. A July 2012 report by naplesnews.com indicated that at least three bidders have emerged for the Debtor's assets: Daniel DeMarco, attorney representing Evans Oil, said his client is supporting Florida Petroleum Company LLC, which presented an all-cash offer; Lender Fifth Third Bank backed Atlas Oil Co., headquartered in Michigan; the bank was also financing the bid; and Avfuel, a fuel distributor in the Midwest, and represented by Fort Lauderdale, Fla. attorney, Alan Perlman, also expressed interest. Soneet Kapila was appointed to facilitate the asset sale. In August 2012, the Court authorized, on a final basis, the sale of Evans Oil's assets to Florida Petroleum, the highest and best bidder. Early in 2012, Fifth Third Bank also attempted but failed to replace management with a Chapter 11 trustee. In November 2012, the Court decided to appoint Philip V. Martino as Chapter 11 trustee. FLINTKOTE COMPANY: Plan Confirmed, ITCAN Objection Junked --------------------------------------------------------- Delaware Bankruptcy Judge Judith Fitzgerald has confirmed the Amended Joint Plan of Reorganization of The Flintkote Company and Flintkote Mines Limited, supported by the Official Committee of Asbestos Personal Injury Claimants and the Future Claimants' Representative, after having found that the Plan complies with Sections 1129 and 524(g) in all respects. Judge Fitzgerald also recommended that the U.S. District Court for the District of Delaware affirm confirmation of the Plan and the Sec. 524(g) injunction. Confirmation hearings were held on October 25 and 26, 2010, and continued on September 12, 13, and 19, 2011. Post-trial briefing was completed on January 20, 2012. The Court heard closing arguments on March 28, 2012, after which it accepted supplemental briefing on the issue of whether Flintkote may formally abandon its alter ego claim in the Plan. The supplemental briefing was completed on May 15, 2012, making the matter ripe for disposition. The only unresolved objections to Plan confirmation are lodged by Imperial Tobacco Canada Limited. From 1917 until 1987, Flintkote was primarily in the business of manufacturing, processing, and distributing building materials. Between the 1930s and the 1980s, a wide variety of those materials contained asbestos. Flintkote was acquired by Genstar Corporation in 1979. In 1986, Genstar was acquired by ITCAN. Flintkote remained an indirect, wholly-owned subsidiary of ITCAN until 2003, when ITCAN transferred Flintkote's stock to a charitable trust. ITCAN argues first that it is a creditor, and thus by definition a "party in interest" with standing to object to confirmation. Secondly, ITCAN argues that even if it is not a creditor of the estate it is still a "party in interest" because the Plan impairs various rights and defenses it has with respect to both Flintkote and individual asbestos plaintiffs in the Dividend Recovery Litigation, which was filed by Flintkote against ITCAN for fraudulent conveyance, wrongful dividen, breach of fiduciary duty, recission and other related theories, arising in connection with ITCAN's alleged hostile takeover of Flintkote. Judge Fitzgerald, in a memorandum dated Dec. 21, 2012, made these rulings: (a) To the extent that ITCAN may have a claim in the future against Flintkote related to alter ego liability, that claim is speculative and cannot confer "party in interest" standing to object to plan confirmation. The the injury in fact must be "actual and imminent," and here the injury is far from imminent. (b) ITCAN has denied throughout the entire bankruptcy case that it is Flintkote's alter ego and has stated several times that even if it is found to be Flintkote's alter ego, it will not pay anything to asbestos victims because, as a Canadian company with its assets in Canada, no judgment would be enforceable against it. The mere unlikely possibility of ITCAN holding a claim against Flintkote by virtue of eventually compensating an asbestos plaintiff for Flintkote's actions on an alter ego theory is too remote to constitute an "injury in fact" for purposes of constitutional standing and/or "party in interest" standing under Sec. 1109(b). (c) Nothing in the Plan imposes tort liability on ITCAN. Regardless of whether or not the Plan is confirmed, individual asbestos victims may still bring alter ego claims against ITCAN in the tort system as Sec. 524(g) does not protect non-debtor entities unless, pursuant to Sec. 524(g)(4), those entities qualify and contribute to the funding of the trust, which ITCAN elected not to do in the case. (d) With respect to ITCAN's objections that its rights are impaired by the Plan because Flintkote shares certain insurance assets with ITCAN's subsidiary, Genstar, the TDP under the Plan is not the source of insurance depletion. A copy of Judge Fitzgerald's Memorandum is available at http://is.gd/L3XvOVfrom Leagle.com. About The Flintkote Company Headquartered in San Francisco, California, The Flintkote Company is engaged in the business of manufacturing, processing and distributing building materials. Flintkote Mines Limited is a subsidiary of Flintkote Company and is engaged in the mining of base-precious metals. The Flintkote Company filed for Chapter 11 protection (Bankr. D. Del. Case No. 04-11300) on April 30, 2004. Flintkote Mines Limited filed for Chapter 11 relief (Bankr. D. Del. Case No. 04-12440) on Aug. 25, 2004. Kevin T. Lantry, Esq., Jeffrey E. Bjork, Esq., Dennis M. Twomey, Esq., Jeremy E. Rosenthal, Esq., and Christina M. Craige, Esq., at Sidley Austin, LLP, in Los Angeles; James E. O'Neill, Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Del., represent the Debtors in their restructuring efforts. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, in New York, N.Y.; Peter Van N. Lockwood, Esq., Ronald E. Reinsel, Esq., at Caplin & Drysdale, Chartered, in Washington, D.C.; and Philip E. Milch, Esq., at Campbell & Levine, LLC, in Wilmington, Del., represent the Asbestos Claimants Committee as counsel. When Flintkote Company filed for protection from its creditors, it estimated more than $100 million each in assets and debts. When Flintkote Mines Limited filed for protection from its creditors, it estimated assets of $1 million to $50 million, and debts of more than $100 million. FTLL ROBOVAULT: Case Trustee Can Hire Forensic Accountants ---------------------------------------------------------- Barry E. Mukamal, the Chapter 11 Trustee of FTLL RoboVault LLC, aka Robo, sought and obtained Bankruptcy Court approval to employ Marcum LLP as forensic accountants. The Chapter 11 Trustee, who was named in November, said he needs Marcum to render these professional services: a. preparation of estate tax returns; b. attendance at meetings with the Debtor, its creditors, the attorneys of such parties, with federal, state, and local tax authorities, if requested; and c. assist the Trustee in the substantial accounting functions necessary to administer the estate. Mr. Mukamal attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. Based in Fort Lauderdale, Florida, FTLL RoboVault LLC, aka Robo Vault, filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 12-33090) on Sept. 27, 2012. Developer Marvin Chaney signed Chapter 11 petitions for Robo Vault and affiliate Off Broward Storage. The companies own modern storage warehouses in Fort Lauderdale. The petition scheduled $18,665,069 in assets and $21,528,776 in liabilities. The U.S. Trustee for Region 21 notified the U.S. Bankruptcy Court for the Southern District of Florida that until further notice, it will not appoint a committee of creditors pursuant to Section 1102 of the Bankruptcy Code. Bankruptcy Judge Raymond B. Ray initially presided over the case. On Nov. 19, the case was transferred to Judge John K. Olson. Lawrence B. Wrenn, Esq., served as the Debtor's counsel. In November, Donald F. Walton, the U.S. Trustee for Region 21, sought and obtained approval from the U.S. Bankruptcy Court to appoint Barry E. Mukamal as Chapter 11 Trustee. The initial bond was fixed in the amount of $100,000. Following the Chapter 11 Trustee's appointment, Mr. Wren voluntarily dismissed himself in the Debtor's bankruptcy case. FTLL ROBOVAULT: Man, Claims to Represent Pope, Taken Into Custody ----------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that a bankruptcy judge in Florida had an individual named James McBride taken into custody by U.S. Marshals after he appeared in court, said he represented Pope Benedict XVI, asserted that the bankruptcy court was engaged in war crimes, and claimed to represent the Court of Chancery, Divine Province, with jurisdiction superior to federal courts. According to the report, U.S. Bankruptcy Judge John K. Olson in Fort Lauderdale had marshals take Mr. McBride into custody for a few hours after the judge became "reasonably apprehensive" there could be "physical violence." In his five-page ruling on Jan. 17 Judge Olson referred the matter to the U.S. Attorney "for possible prosecution for criminal contempt," in part because McBride told a Chapter 11 trustee for a company named FTLL Robovault LLC to turn over possession of the bankrupt's property. Judge Olson also recommended that a district judge subject Mr. McBride to a psychological examination and determine "appropriate sanctions to be imposed." Mr. Rochelle notes that Judge Olson has experience imposing sanctions on those who misbehave. He had a lawyer suspended from practice in bankruptcy court for 60 days on account of "disrespectful and impertinent" attacks on the court. The suspension was upheld in October by the U.S. Court of Appeals in Atlanta. About FTLL RoboVault Based in Fort Lauderdale, Florida, FTLL RoboVault LLC, aka Robo Vault, filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 12-33090) on Sept. 27, 2012. Developer Marvin Chaney signed Chapter 11 petitions for Robo Vault and affiliate Off Broward Storage. The companies own modern storage warehouses in Fort Lauderdale. The petition scheduled $18,665,069 in assets and $21,528,776 in liabilities. The U.S. Trustee for Region 21 notified the U.S. Bankruptcy Court for the Southern District of Florida that until further notice, it will not appoint a committee of creditors pursuant to Section 1102 of the Bankruptcy Code. Bankruptcy Judge Raymond B. Ray initially presided over the case. On Nov. 19, the case was transferred to Judge John K. Olson. Lawrence B. Wrenn, Esq., served as the Debtor's counsel. In November, Donald F. Walton, the U.S. Trustee for Region 21, sought and obtained approval from the U.S. Bankruptcy Court to appoint Barry E. Mukamal as Chapter 11 Trustee. Following the Chapter 11 Trustee's appointment, Mr. Wren voluntarily dismissed himself in the Debtor's bankruptcy case. GEOKINETICS INC: Avista Capital Discloses 38.5% Equity Stake ------------------------------------------------------------ In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Avista Capital Partners GP, LLC, and its affiliates disclosed that, as of Jan. 15, 2013, they beneficially own 10,097,859 shares of common stock of Geokinetics, Inc., representing 38.5% of the shares outstanding. A copy of the filing is available for free at http://is.gd/enQOBD About Geokinetics Inc. Headquartered in Houston, Texas, Geokinetics Inc., a Delaware corporation founded in 1980, is provides seismic data acquisition, processing and integrated reservoir geosciences services, and land, transition zone and shallow water OBC environment geophysical services. These geophysical services include acquisition of 2D, 3D, time-lapse 4D and multi-component seismic data surveys, data processing and integrated reservoir geosciences services for customers in the oil and natural gas industry, which include national oil companies, major international oil companies and independent oil and gas exploration and production companies worldwide. The Company's balance sheet at Sept. 30, 2012, showed $415.71 million in total assets, $590.79 million in total liabilities, $90.72 million in mezzanine equity, and a $265.80 million total stockholders' deficit. * * * In the Oct. 5, 2011, edition of the TCR, Moody's Investors Service downgraded Geokinetics Holdings, Inc.'s (Geokinetics) Corporate Family Rating (CFR) and Probability of Default Rating (PDR) to Caa2 from B3. "The downgrade to Caa2 is driven by Geokinetics' lower than expected margins in its international markets, constrained liquidity and weak leverage metrics," commented Andrew Brooks, Moody's Vice-President. "The negative outlook highlights the company's continuing tight liquidity and weak financial metrics even in an improved oil and gas operating environment." As reported by the TCR on Oct. 3, 2011, Standard & Poor's Ratings Services lowered its corporate credit and senior secured ratings on Geokinetics Holdings Inc. (Geokinetics) to 'CCC+' from 'B-'. The rating action reflects uncertainty surrounding the costs, damage to reputation, and effect on operations following a liftboat accident in the Southern Gulf of Mexico that led to four fatalities, including two Geokinetics employees and two subcontractors. GREYSTONE LOGISTICS: Reports $2,600 Net Income in Nov. 30 Qtr. -------------------------------------------------------------- Greystone Logistics, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income available to common stockholders of $2,603 on $5.06 million of sales for the three months ended Nov. 30, 2012, compared with net income available to common stockholders of $237,248 on $6.21 million of sales for the same period a year ago. For the six months ended Nov. 30, 2012, the Company reported net income available to common stockholders of $834,608 on $12.18 million of sales, compared with net income available to common stockholders of $623,934 on $11.99 million of sales for the same period during the prior year. Greystone reported net income of $2.49 million for the year ended May 31, 2012, compared with a net loss of $847,204 during the prior fiscal year. The Company's balance sheet at Nov. 30, 2012, showed $12.48 million in total assets, $18.02 million in total liabilities and a $5.53 million total deficit. A copy of the Form 10-Q is available for free at: http://is.gd/0bt6Ac About Greystone Logistics Tulsa, Okla.-based Greystone Logistics, Inc. (OTC BB: GLGI.OB - News) -- http://www.greystonelogistics.com/-- manufactures and sells plastic pallets through its wholly owned subsidiary, Greystone Manufacturing, LLC. Greystone sells its pallets through direct sales and a network of independent contractor distributors. Greystone also sells its pallets and pallet leasing services to certain large customers direct through its President, Senior Vice President of Sales and Marketing and other employees. HAROLD BUNTING: E.D. Mich. Court Rules in Unpaid Lawyer's Appeal ---------------------------------------------------------------- About 12 years ago, Virginia Kozlowski (at the time, Mrs. Bunting) sought a divorce from her husband, Harold Bunting, in Michigan state court. Trial on division of the marital estate began in 2002. Mr. Bunting has been challenging the division ever since. He took five appeals to Michigan's court of appeals. When it seemed that he had exhausted his litigation resources, he found a willing proxy to continue the fight -- his lawyer Stuart Sandweiss. Mr. Sandweiss, who held a judgment against Mr. Bunting for unpaid attorney fees, initiated an involuntary Chapter 7 bankruptcy proceeding against Mr. Bunting. From the outset of the bankruptcy litigation, however, Mr. Sandweiss acknowledged that he was "going to put the interest of my client [the Debtor] ahead of the interest of my law firm." Mr. Bunting's principal interest was reducing the amount awarded to Ms. Kozlowski pursuant to the judgment of divorce. In furtherance of that interest, Mr. Sandweiss filed a number of objections to Ms. Kozlowski's claim. The bankruptcy court overruled the objections. Mr. Sandweiss appeals. In last week's ruling, District Judge Thomas L. Ludington in Bay City, Mich., affirmed the bankruptcy court judgment. "This divorce case has now spanned more than 12 years. The Debtor took five appeals to the Michigan Court of Appeals. And, when it seemed that he had exhausted his litigation resources, he found a willing proxy to attempt to continue to express his dissatisfaction with the amount awarded to his former spouse. The bankruptcy court properly declined to perpetuate this attempt. Its decisions should be affirmed," the judge said. Mr. Bunting filed a Chapter 11 petition (Bankr. E.D. Mich. Case No. 03-22751) in 2003. In the Debtor's bankruptcy schedules, he calculated his total assets as $450,319 plus an "unknown" amount in real property. He calculated his total liabilities as $1,057,433 to $57,433 in secured and unsecured claims to various creditors, plus a $1 million secured claim to the Sandweiss firm that, the Debtor dryly observed, arose "allegedly through a divorce proceeding." At the Debtor's behest, the Court dismissed the Chapter 11 petition on March 3, 2006. Sandweiss filed an involuntary Chapter 7 petition against the Debtor (Bankr. E.D. Mich. Case No. 07-20864) on April 5, 2007. Ms. Kozlowski filed a motion on May 21, 2007, in the bankruptcy court to appoint an interim trustee. The court granted the motion. On Dec. 7, 2007, the court denied a motion to convert the case from Chapter 7 to Chapter 11. The case before the District Court is, SANDWEISS LAW CENTER, P.C., Appellant, v. VIRGINIA KOZLOWSKI, Appellee, RANDALL L. FRANK, Interested Party, Case No. 12-10472 (E.D. Mich.). A copy of the Court's Jan. 15, 2013 Opinion and Order is available at http://is.gd/CpKVAffrom Leagle.com. HAWKER BEECHCRAFT: Pension Deals Pending with Bankruptcy Judge -------------------------------------------------------------- Molly McMillin, writing for The Wichita Eagle, reported that a U.S. bankruptcy judge reserved judgment in a hearing regarding the future of Hawker Beechcraft's three pension plans, while a settlement has been reached with an ad hoc retiree committee of salaried employees. The report related that the small group opposed the Pension Benefit Guaranty Corp.'s takeover of its plan, saying their benefits would be substantially reduced if the judge approved the takeover. That's because they receive benefits that are above the PBGC's caps on how much a retiree can collect in a year, Ms. McMillin noted. Details of the settlement are expected to be available as early as Friday, the report said. The report related that ad hoc committee is made up of nine or 10 retirees but the settlement covers about 70 former salaried employees whose benefits would be reduced under PBGC caps, the company said. Other groups of retirees' monthly benefits wouldn't be reduced by the change because their benefits fall below the caps, the report noted. Hawker Beechcraft, the report said, has asked the court to terminate the salaried and base retirement income plan and for the PBGC, rather than the company, to pay benefits to vested participants. Hourly workers represented by the Machinists union reached agreement with the company regarding their retirement income plan earlier in the process, the report recounted. Under the agreement, accruals were to be frozen at the end of 2012, and a new Retirement Income Savings Plan was to be created and continue to operate after Hawker Beechcraft emerges from bankruptcy, which the company expects to do in late February. The report said Judge Stuart Bernstein plans to rule this week on the pensions in a hearing next week. Judge Bernstein wanted to make sure retirees in the ad hoc group knew the details of the settlement and had time to file an objection if desired before he ruled, the report said, citing the company. "Judge Bernstein gave no indication that he did not support the proposed global settlement between the Company, the PBGC and the IAM (the Machinists)," Nicole Alexander, a Hawker Beechcraft spokeswoman, told The Wichita Eagle in an e-mailed statement. "He declined to rule today because he wanted the Company to provide notice of the additional proposed settlement with the Ad Hoc Retiree Committee to other affected Salaried Plan participants and provide an opportunity for those parties to respond by the time of our next hearing on Jan. 24, 2013." In its court filing, members of the retiree group opposed what it called unequal treatment for the company's salaried and hourly retirees, the report said. The group noted that Hawker Beechcraft is not seeking to terminate the retirement income plan for hourly workers represented by the union, while seeking termination of two plans for salaried employees, the report added. "Since the debtors (Hawker Beechcraft) are preserving the hourly plan, they are not permitted to terminate the salaried plan," the report said, citing the group's filing. The PBGC is a federal agency that administers pension plans for companies that cannot meet their financial obligations to retirees. The agency pays the benefits, but with caps, when an employer is no longer able to pay. The report recalled that the agency and Hawker Beechcraft agreed in principle in August for the PBGC to take over administration of the two plans, subject to court approval. If the plans are terminated, the agency assumes the assets and liabilities, takes over as the trustee and pays the benefits, the report said. Hawker Beechcraft's three pension plans have $769 million in assets to cover $1.4 billion in anticipated obligations, the company has said in prior filings, the report added. About Hawker Beechcraft Hawker Beechcraft Acquisition Company, LLC, headquartered in Wichita, Kansas, manufactures business jets, turboprops and piston aircraft for corporations, governments and individuals worldwide. Hawker Beechcraft reported a net loss of $631.90 million on $2.43 billion of sales in 2011, compared with a net loss of $304.30 million on $2.80 billion of sales in 2010. Hawker Beechcraft Inc. and 17 affiliates filed for Chapter 11 reorganization (Bankr. S.D.N.Y. Lead Case No. 12-11873) on May 3, 2012, having already negotiated a plan that eliminates $2.5 billion in debt and $125 million of annual cash interest expense. The plan will give 81.9% of the new stock to holders of $1.83 billion of secured debt, while 18.9% of the new shares are for unsecured creditors. The proposal has support from 68% of secured creditors and holders of 72.5% of the senior unsecured notes. Hawker is 49%-owned by affiliates of Goldman Sachs Group Inc. and 49%-owned by Onex Corp. The Company's balance sheet at Dec. 31, 2011, showed $2.77 billion in total assets, $3.73 billion in total liabilities and a $956.90 million total deficit. Other claims include pensions underfunded by $493 million. Hawker's legal representative is Kirkland & Ellis LLP, its financial advisor is Perella Weinberg Partners LP and its restructuring advisor is Alvarez & Marsal. Epiq Bankruptcy Solutions LLC is the claims and notice agent. Sidley Austin LLP serves as legal counsel and Houlihan Lokey Howard & Zukin Capital Inc. serves as financial advisor to the DIP Agent and the Prepetition Agent. Wachtell, Lipton, Rosen & Katz represents an ad hoc committee of senior secured prepetition lenders holding 70% of the loans. Milbank, Tweed, Hadley & McCloy LLP represents an ad hoc committee of holders of the 8.500% Senior Fixed Rate Notes due 2015 and 8.875%/9.625% Senior PIK Election Notes due 2015 issued by Hawker Beechcraft Acquisition Company LLC and Hawker Beechcraft Notes Company. The members of the Ad Hoc Committee -- GSO Capital Partners, L.P. and Tennenbaum Capital Partners, LLC -- hold claims or manage accounts that hold claims against the Debtors' estates arising from the purchase of the Senior Notes. Deutsche Bank National Trust Company, the indenture trustee for senior fixed rate notes and the senior PIK-election notes, is represented by Foley & Lardner LLP. An Official Committee of Unsecured Creditors appointed in the case has selected Daniel H. Golden, Esq., and the law firm of Akin Gump Strauss Hauer & Feld LLP as legal counsel. HOOKUP LLC: Bankrupt Tenant's Chairman Cited for Civil Contempt --------------------------------------------------------------- At the behest of Hookup, L.L.C., Bankruptcy Judge Kevin R. Huennekens cited Joseph F. Guthrie, the Chairman of Warehouse Stores, Inc., in his individual capacity, for civil contempt and directed him to pay $30,000. Hookup is a debtor in a Chapter 11 case. Warehouse is in liquidation proceedings under Chapter 7. From June 1, 2011, through Sept. 5, 2011, Hookup and Warehouse entered into a series of lease agreements under which Warehouse agreed to lease roughly 50% of Hookup's property in Richmond, Virginia, to operate its retail business, in exchange for a minimum of $7,000 base rent per month. Warehouse refused to make any of the rental payments that came due after Hookup filed for bankruptcy, contending that Hookup's alleged pre-petition default entitled Warehouse to withhold the payment of rent. Nevertheless, Warehouse continued to use and occupy the leased premises. On Oct. 15, 2012, the Court overseeing Hookup's case issued a Memorandum Opinion and entered an Order, (1) finding that Warehouse had intentionally violated the automatic stay by unilaterally withholding rent and (2) granting Hookup's motion for sanctions pursuant to 11 U.S.C. Sec. 362(k). The Court scheduled a hearing for Nov. 7 to determine the appropriate measure of damages to be awarded against Warehouse. Seven days prior to the Nov. 7 Hearing, and unbeknownst to Hookup or to counsel for Warehouse, Mr. Guthrie entered into a letter agreement whereunder Warehouse agreed to sell to Sky Nate Property Management, LLC, all of the assets of Warehouse for a total of $150,000. Per the terms of the Letter Agreement, Warehouse received a $75,000 non-refundable deposit on Nov. 1, 2012. Sky Nate paid the remaining $75,000 by wire transfer to the account of Warehouse on Nov. 14. The sales transaction between Warehouse and Sky Nate was not disclosed to the Court at the Nov. 7 Hearing. On the contrary, Mr. Guthrie appeared at the Nov. 7 Hearing and testified that Warehouse had no money with which it could pay future rent. In spite of the fact that Warehouse had over $35,000 in its bank account as of the date of the Nov. 7 Hearing and in spite of the fact that Warehouse was anticipating the receipt of an additional $75,000 within the next two weeks, Mr. Guthrie allowed Warehouse's counsel to make multiple representations to the Court that Warehouse lacked the ability to pay any damage award the Court might make. An initial hearing on Hookup's Motion for Civil Contempt was held Dec. 18, 2012. The Court continued that hearing to Jan. 8, 2013, to allow Warehouse, its counsel, and Mr. Guthrie the opportunity to appear and participate. Immediately prior to the Jan. 8 Hearing, Warehouse filed its own voluntary petition for relief under Chapter 7 of the Bankruptcy Code. According to Judge Huennekens, as a result of the commencement of the bankruptcy case, Warehouse is entitled to the protection afforded by the automatic stay of 11 U.S.C. Sec. 362. As Warehouse is now under the direct control and supervision of the interim trustee, no further need exists for injunctive relief against it. Upon Hookup's request, the Court deferred the Hearing on the Motion as to Warehouse and proceeded as to Mr. Guthrie only. Despite receiving notice of the Hearing, Mr. Guthrie neither appeared nor retained counsel to appear on his behalf at the Jan. 8 Hearing. Although Counsel for Warehouse advised the Court that he did not represent Mr. Guthrie, Counsel for Warehouse did proceed to actively participate at the Hearing on Mr. Guthrie's behalf. At the conclusion of the Hearing, the Court granted Hookup's Motion as to Mr. Guthrie and imposed sanctions against him. According to Judge Huennekens, Mr. Guthrie's intentional misrepresentations at the Nov. 7 Hearing constituted misbehavior amounting to an obstruction of justice. A copy of the Court's Jan. 15, 2013 Memorandum Opinion is available at http://is.gd/5TAa0Mfrom Leagle.com. Warehouse Stores, Inc. filed a Chapter 7 petition (Bankr. E.D. Va. Case No. 13-30100) early in January 2013. Warehouse is a Virginia corporation, whose primary business is the sale of furniture, fixtures, decorations, art, jewelry, and antique collectibles to retail customers and public dealers. Bruce Matson has been appointed interim trustee in the case. Hookup, L.L.C., filed a voluntary Chapter 11 petition (Bankr. E.D. Va. Case No. 12-33202) on May 23, 2012. Hookup is a Virginia limited liability company, whose sole asset is a parcel of real estate and improvements located thereon at 1500 Chamberlayne Avenue, Richmond, Virginia. The improvements on the Property consist of a 54,000-square-foot commercial warehouse. Judge Kevin R. Huennekens oversees Hookup's case. David K. Spiro, Esq., at Hirschler Fleischer, represents Hookup as counsel. The Company scheduled $1,800,100 in assets and $1,481,883 in liabilities. A list of Hookup's four largest unsecured creditors is available for free at http://bankrupt.com/misc/vaeb12-33202.pdf The petition was signed by Robert J. Rogers, managing member. JD TOOL: Court Rejects Chapter 7 Trustee's Case Dismissal Bid ------------------------------------------------------------- The Chapter 7 Trustee of JD Tool Inc., failed to persuade a bankruptcy judge to dismiss the Debtor's case. Saying the Debtor's case is a "no-asset case", the Chapter 7 Trustee asserts the case was filed for the sole purpose of shifting the burden of preparing and filing the Debtor's final tax returns from the Debtor's principals to him and that, because the estate is insolvent, he must not only use his own funds to pay an accountant to prepare the returns, he is exposed to personal liability for any resulting tax or penalty for failing to file the returns. Bankruptcy Judge Arthur B. Federman, however, held that the Debtor filed the case for reasons other than merely shifting the duty of filing the returns to the Trustee and that, while the Trustee may be obligated to file tax returns on behalf of the Debtor, he is not exposed to personal liability for taxes in this case. "The Trustee's Motion to Dismiss is denied, without prejudice to its being refiled if the Internal Revenue Service determines that the Trustee is exposed to personal liability for taxes in this case," the judge said. According to the Debtor's Statement of Financial Affairs, the Debtor ceased doing business in July 2012. It filed a voluntary Chapter 7 bankruptcy case (Bankr. W.D. Mo. Case No. 12-61421) on July 31, 2012, and Fred Charles Moon was appointed Chapter 7 Trustee. After conducting a Meeting of Creditors under 11 U.S.C. Sec. 341, the Trustee determined that there are no assets or claims which will produce any money to pay for the costs and expenses of administration or which will produce a significant dividend for creditors of this estate. The Trustee has filed a Report of No Distribution and has abandoned all of the Debtor's assets. A copy of the Court's Jan. 16, 2013 Order is available at http://is.gd/xuFIN0from Leagle.com. KAREN W. FORD: Court Rejects Bid for Contempt Against Wells Fargo ----------------------------------------------------------------- Bankruptcy Judge Peter J. McNiff denied the request of Karen W. Ford to direct Wells Fargo Bank to show cause or cite the bank for contempt for violating the automatic stay by commencing proceedings in the District Court for the Ninth Judicial District for the State of Wyoming seeking to (1) foreclose on the property of Flat Creek Capital, LLC, and, (2) have a receiver appointed to administer Flat Creek's rental income. Ms. Ford owns a 75% membership interest in Flat Creek and is its managing member. Ms. Ford in 1990 loaned Flat Creek the amount of $200,000 which was evidenced by a Promissory Note. In 2010, she replaced the 1990 Note with a new Note in the amount of $217,000. Ms. Ford and her spouse, Glenn Ford defaulted on several notes they had entered into with Wells Fargo. Wells Fargo initiated an action in the United States District Court -- District of Wyoming on the personal guaranties that the Fords had granted to Wells Fargo on the notes. On Nov. 2, 2011, the Federal Court entered a judgment in favor of Wells Fargo and against the Fords in the amount of $2,161,203. Wells Fargo was aware of the debt Flat Creek owed the Debtor. Wells Fargo recorded the Judgment as a foreign judgment in the State of Wyoming District Court located in Teton County, Wyoming and proceeded to collect by obtaining a Writ of Garnishment in State Court and serving Flat Creek in November 2011. Flat Creek, by and through its managing member, the Debtor, filed its Garnishee's Answer to Writ of Garnishment in December 2011. Ms. Ford filed her Chapter 11 bankruptcy petition (Bankr. D. Wyo. Case No. 12-20094) and schedules on Feb. 10, 2012. On March 7, 2012, Wells Fargo filed a complaint in State Court against Flat Creek seeking to foreclose on the mortgages securing notes with Welts Fargo. According to Judge McNiff, the Debtor's note was set off against the Debtor's obligation to Flat Creek, and the note was satisfied and mortgage terminated at the time Flat Creek answered the Writ of Garnishment on Dec. 8, 2011. As the Debtor did not file her Chapter 11 bankruptcy petition and schedules until Feb. 10, 2012, the mortgage was not property of the estate on the date the bankruptcy case was commenced. As the mortgage was not property of the bankruptcy estate, Wells Fargo did not violate the automatic stay. A copy of Judge McNiff's Jan. 16, 2013 Opinion is available at http://is.gd/Rx8T8Ufrom Leagle.com. LA JOLLA: To Present at Next Week's Orlando World MoneyShow ----------------------------------------------------------- La Jolla Pharmaceutical Company announced that George F. Tidmarsh, MD, PhD, president and chief executive officer, will be presenting at the 2013 Orlando World MoneyShow on Jan. 31, 2013, at 3:00 p.m. eastern time. The presentation can be viewed via live webcast by registering with MoneyShow.com. The 2013 Orlando World MoneyShow runs from January 30 to Feb. 2, 2013, at the Gaylord Palms Resort and Convention Center in Kissimmee, Florida. More information about the conference can be found at http://www.moneyshow.com. About La Jolla Pharmaceutical San Diego, Calif.-based La Jolla Pharmaceutical Company (OTC BB: LJPC) -- http://www.ljpc.com/-- is a biopharmaceutical company that has historically focused on the development and testing of Riquent as a treatment for Lupus nephritis. La Jolla reported a net loss of $11.54 million in 2011, compared with a net loss of $3.76 million in 2010. The Company's balance sheet at Sept. 30, 2012, showed $3.40 million in total assets, $12.93 million in total liabilities, all current, $5.80 million in Series C-1 redeemable convertible preferred stock, and a $15.33 million total stockholders' deficit. After auditing the 2011 results, BDO USA, LLP, in San Diego, California, 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, has an accumulated deficit of $439.6 million and a stockholders' deficit of $15.6 million as of Dec. 31, 2011, and has no current source of revenues. LEGAL iGAMING: Equity Holders Lose Appeal Over Asset Sale --------------------------------------------------------- Legal iGaming Inc. won dismissal of an appeal initiated by a group of the company's shareholders from a bankruptcy court order approving the company's sale of assets. Nevada District Judge Miranda M. Du said the appeal is equitably moot as a plan of reorganization has been confirmed and declared effective in the case. Judge Du said the appellants have not fully pursued their rights by seeking a stay pending appeal to prevent implementation of the Confirmation Order. The asset sale was approved by the Court, the parties closed on the transaction, the money was paid, and the funds distributed to the company's creditors. Reversing these transactions would not be simple, Judge Du said. A reversal of the approval of the bankruptcy plan at this point would "knock the props out" from underneath the plan. The sale of the assets was essential to the reorganization plan. Reversing the transaction would not only disturb the reorganization plan, but would require a complete restart of the bankruptcy proceedings. The equity holders brought the appeal before the District Court and the Bankruptcy Appellate Panel. Because the issues in both appeals are essentially the same, the BAP referred the original appeal pending before it to the District Court. Judge Du said the BAP appeal is also dismissed. The appeal is, EQUITY HOLDERS, v. LEGAL iGAMING, INC., a Nevada Corporation, Appellee, Case No. 2:12-cv-00047-MMD-GWF (D. Nev.). A copy of the Court's Jan. 16, 2013 Order is available at http://is.gd/ZhElePfrom Leagle.com. Las Vegas, Nevada-based Legal iGaming, Inc., c/o Sklar Williams, filed for Chapter 11 bankruptcy (Bankr. D. Nev. Case No. 11-12771) on Feb. 28, 2011. Judge Bruce T. Beesley oversees the case. Samuel A. Schwartz, Esq. -- sam@schwartzlawyers.com -- at The Schwartz Law Firm, represents the Debtor as counsel. The Debtor scheduled $2,622,876 in assets and $187,348 in liabilities. A list of the Company's five largest unsecured creditors is available for free at http://bankrupt.com/misc/nvb11-12771.pdf The petition was signed by Wayne Krygier, president, treasurer, secretary, director. On Aug. 17, 2011, the Court approved the sale of the Debtor's assets. The Bankruptcy Court confirmed the Debtor's Chapter 11 reorganization plan on Feb. 27, 2012. The Debtor entered the Notice of Entry of the Confirmation Order the next day, and 14 days after that, having received no notice of appeal of the Confirmation Order, distributed the funds from the sale. LEHMAN BROTHERS: Seeks $291MM Reserve for US Air, Essex Claims -------------------------------------------------------------- Lehman Brothers Holdings Inc. asked Judge James Peck of the U.S. Bankruptcy Court for the Southern District of New York to approve a $91.2 million reserve for US Airways Inc.'s claim and $200 million reserve for Essex Equity Holdings USA LLC's claim. The move is part of the company's effort to implement its $65 billion payout plan, which the Bankruptcy Court approved in December 2011. US Airways filed a $564.7 million claim against Lehman while Essex filed a $1.2 billion claim. Both claims stemmed from the securities they bought through former employees of Lehman's brokerage. Lehman previously challenged the filing of those claims, saying it should not be held liable for claims that arise from deals involving groups or companies that did not file for bankruptcy protection. US Airways continues to prosecute its $564.7 million claim against Lehman although the Financial Industry Regulatory Authority has already issued a decision that the airline only sustained about $15 million in damages. Meanwhile, the U.S. regulators has already denied Essex's claim against the Lehman employees who sold the securities. A similar claim, which Essex filed in the Lehman brokerage's liquidation proceeding, has not yet been decided by the bankruptcy court. Lehman lawyer, Robert Lemons, Esq., at Weil Gotshal & Manges LLP, in New York, said the proposed $291.2 million reserve, if approved, would enable the company to address the claims in an "economical and efficient manner, without diminishing distributions and unfairly prejudicing [Lehman's] other creditors." A court hearing is set for January 30. Objections are due by January 23. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. The Chapter 11 plan for the Lehman companies other than the broker was confirmed in December 2011. Lehman made its first payment of $22.5 billion to creditors in April 2012 and a second payment of $10.2 billion on Oct. 1. A third distribution is set for around March 30, 2013. The brokerage is yet to make a first distribution to non-customers. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-700) LEHMAN BROTHERS: Automatic Stay Extended for 50+ Lawsuits --------------------------------------------------------- The U.S. Bankruptcy Court in Manhattan extended the automatic stay to more than 50 lawsuits involving Lehman Brothers Holdings Inc. until entry of an order granting the company's request for another six-month stay. Lehman, along with the unsecured creditors' litigation committee, previously proposed to extend the stay to July 20, 2013, saying the extension would allow the company to settle the lawsuits. The stay, which will expire on January 20, 2013, went into effect in the latter part of October 2010. Lehman filed the lawsuits in 2010 to recover funds from more than 200 pre-bankruptcy transactions involving the company. The hearing to consider the request has been moved from January 16 to January 30. Objections are due by January 23. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. The Chapter 11 plan for the Lehman companies other than the broker was confirmed in December 2011. Lehman made its first payment of $22.5 billion to creditors in April 2012 and a second payment of $10.2 billion on Oct. 1. A third distribution is set for around March 30, 2013. The brokerage is yet to make a first distribution to non-customers. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-700) LEHMAN BROTHERS: Subpoenas Still Being Served to Banks ------------------------------------------------------ BNP Paribas and 23 other companies were served with subpoenas to force them to turn over certain documents to Lehman Brothers Holdings Inc.'s legal counsel Weil Gotshal & Manges LLP. A subpoena is also out against Puerto Rico Public Finance Corp., which is required to turn over documents to New York-based law firm Jones Day. Lehman Brothers served the subpoenas during the period December 12, 2012 to January 15, 2013, in accordance with an earlier order issued by the U.S. Bankruptcy Court in Manhattan. The court order dated November 23, 2009, authorized the company to investigate those who had been involved in various Lehman transactions. Any document and information collected from the investigation will be used for evaluating the company's financial status. Meanwhile, the company withdrew the subpoenas it issued against AXA Fund Management SA, Bank Sarasin & Co. Ltd., Canyon Value Realization MAC 18 Ltd., CFIP Master Fund Ltd., Crow Point Utility & Telecommunications Master Fund Ltd., GPC LXIV LLC, Halbis US Credit Alpha Master Fund Ltd., Harlan Investment Limited, Oppenheimer Distressed Opportunities LP, Rothorn Fund Limited, and certain ClearBridge companies. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. The Chapter 11 plan for the Lehman companies other than the broker was confirmed in December 2011. Lehman made its first payment of $22.5 billion to creditors in April 2012 and a second payment of $10.2 billion on Oct. 1. A third distribution is set for around March 30, 2013. The brokerage is yet to make a first distribution to non-customers. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-700) LEHMAN BROTHERS: Opposes Traxis Bid to Re-Issue Checks ------------------------------------------------------ Lehman Brothers Holdings Inc. asked the U.S. Bankruptcy Court in Manhattan to deny the request of Traxis Fund LP and Traxis Emerging Market Opportunities Fund LP to compel the company to reissue distribution checks to the funds. The checks in the amount of $175,948 were allegedly issued to the funds in early 2012 but they were neither received by the funds nor returned to Epiq Systems as undeliverable, according to court papers. Epiq, Lehman's claims agent, allegedly turned down an earlier request from the funds to reissue the checks since it is not allowed under Lehman's Chapter 11 plan. Lehman lawyer, Garrett Fail, Esq., at Weil Gotshal & Manges LLP, in New York, said the funds' request for reissuance of the checks is "explicitly discharged and forever barred from assertion" by the company's bankruptcy plan. "The plan provides that the amount now claimed by Traxis irrevocably reverted to the respective Chapter 11 estates to be distributed to all creditors in accordance with the plan, technically including to Traxis on account of its future distributions," he said. Mr. Fail further said that the plan "granted no discretion or flexibility" to Lehman to honor the funds' request. Traxis lawyer John Ashmead, Esq., at Seward & Kissel LLP, in New York, said the funds' failure to timely request the reissuance of the checks is the result of "excusable neglect" "Traxis should not be penalized for circumstances beyond its control, particularly where the delay is so incredibly short and the potential impact on other creditors and the administration of the debtors' estates so utterly negligible," Mr. Ashmead said in court papers. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. The Chapter 11 plan for the Lehman companies other than the broker was confirmed in December 2011. Lehman made its first payment of $22.5 billion to creditors in April 2012 and a second payment of $10.2 billion on Oct. 1. A third distribution is set for around March 30, 2013. The brokerage is yet to make a first distribution to non-customers. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-700) LEHMAN BROTHERS: Court OKs Deloitte, et al., Final Fee Requests --------------------------------------------------------------- The U.S. Bankruptcy Court in Manhattan approved the applications for final allowance of fees and reimbursement of expenses of these bankruptcy professionals hired in connection with Lehman Brothers Holdings Inc.'s Chapter 11 case: Professional Period Fees Expenses ------------ ------ -------- -------- Deloitte Tax LLP 09/15/08 to $923,015 $0 03/06/12 Epiq Bankruptcy Solutions 09/01/11 to $1,157,292 $46,125 12/06/11 Kleyr Grasso Associes 09/15/08 to $1,121,962 $0 03/06/12 Houlihan Lokey Howard & 09/15/08 to $28,266,666 $50,432 Zukin Capital Inc. 03/06/12 About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008 (Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. The Chapter 11 plan for the Lehman companies other than the broker was confirmed in December 2011. Lehman made its first payment of $22.5 billion to creditors in April 2012 and a second payment of $10.2 billion on Oct. 1. A third distribution is set for around March 30, 2013. The brokerage is yet to make a first distribution to non-customers. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. (http://bankrupt.com/newsstand/or 215/945-700) LIBERTY HARBOR: Plan Filing Exclusivity Extended to Feb. 21 ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of New Jersey, in a bridge order, extended Liberty Harbor Holding, LLC's exclusive periods to propose a plan of reorganization until Feb. 21, 2013, and solicit acceptances for that plan until April 22, 2013. The Debtors related that the super storm Sandy has caused massive flooding and damage on their property under construction. There were also several pleadings filed by alleged creditors seeking, among other things, relief from the automatic stay in order to pursue a state court appeal, well as permission to file a late proof of claim. According to the Debtors, they have begun the preparation of a plan and disclosure statement. The preparation of these documents requires consideration of certain structural, tax, funding and other concerns. The Debtors wish to assure that the disclosure statement contains accurate and adequate information, to allow all creditors entitled to vote to cast an informed ballot. About Liberty Harbor Jersey City, New Jersey-based Liberty Harbor Holding, LLC, along with two affiliates, sought Chapter 11 protection (Banrk. D. N.J. Lead Case No. 12-19958) in Newark on April 17, 2012. Each of the Debtors is solely owned by Peter Mocco. Liberty, as of April 16, 2012, had total assets of $350.08 million, comprising of $350 million of land, $75,000 in accounts receivable and $458 cash. The Debtor says that it has $3.62 million of debt, consisting of accounts payable of $73,500 and unsecured non-priority claims of $3,540,000. The Debtor's real property consists of Block 60, Jersey City, NJ 100% ownership Lots 60, 70, 69.26, 61, 62, 63, 64, 65, 25H, 26A, 26B, 27B, 27D. Affiliates that filed separate petitions are: Liberty Harbor II Urban Renewal Co., LLC (Case No. 12-19961) and Liberty Harbor North, Inc. (Case No. 12-19964). The three cases are administratively consolidated. Judge Novalyn L. Winfield presides over the case. Wasserman, Jurista & Stolz, P.C. srves as insolvency counsel and Scarpone & Vargo as special litigation counsel. The petition was signed by Peter Mocco, managing member. Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed three creditors to the Official Committee of Unsecured Creditors in the Chapter 11 cases of the Debtor. LLS AMERICA: District Court to Hear 17 Avoidance Actions -------------------------------------------------------- At the behest of Bruce P. Kriegman, the court-appointed Chapter 11 Trustee for LLS America LLC, Chief District Judge Rosanna Malouf Peterson withdraw the bankruptcy court reference of various adversary proceedings the trustee initiated to avoid preferential or fraudulent transfers. According to the adversary complaint, LLS allegedly engaged in a "Ponzi" scheme by accepting loans from various parties and using later loans to repay with interest the earlier lenders. The defendants named in the complaint are all alleged to have lent money to LLS and received a return with interest of their funds. The complaint asserts that the payments made by LLS to the lender- defendants constituted fraudulent transfers and that such transfers should be avoided and returned to the bankruptcy estate to be distributed through the bankruptcy process. The Chapter 11 Trustee seeks the withdrawal of the District Court's automatic referral of the case to the bankruptcy court. The basis for withdrawal is born out of the Court's granting of withdrawal motions filed by defendants in other adversary actions. In light of the uncertainty surrounding the bankruptcy court's jurisdiction, the Chapter 11 Trustee asserts that the District Court should withdraw reference as to the trial and allow the bankruptcy court to proceed on pre-trial matters. The Defendants filed no opposition. According to Judge Peterson, all unresolved substantive or evidentiary issues that may foreseeably arise during trial will be addressed by motions in limine to be filed and served on or before March 8, 2013. Responses shall be filed and served on or before March 15. Such motions will be addressed and resolved at the pretrial conference. A joint Pretrial Order must be filed in the district court by March 28. Trial briefs and requested voir dire must be filed in the district court and served by March 28. Prior to March 28, 2013, the parties must confer regarding jury instructions. By March 28, the parties must jointly file in the district court a complete set of jury instructions that contain copies of each instruction on which the parties agree and copies of each instruction that is disputed (i.e., a copy of each party's proposed version, if any, of an instruction on which they do not agree). By March 28, each party must file in the district court and serve a legal memorandum addressing any objections the party has regarding any instructions proposed by any other party. The party proposing a disputed instruction may file a memorandum responding to any other party's objections, but must do so on or before March 28. An in-person pretrial conference will be held on April 9, 2013, at 9:00 a.m. in district court in Spokane, Washington. The jury trial shall commence on April 22, at 9:00 a.m. in district court in Spokane. The defendants to those lawsuits are: * Andrew Stack and Elisabeth Stack; * Karen Falk; * Frank Gyenizse and Beverly Gyenizse; * Janet McDonald; * Enrique Torres; * Cindy Wetmore; * Pacifica Ventures Inc.; * John Schneider et al.; * Joanna Walton and Ralph Wilton * Stephen Briscoe; * Maria Szalay; * Hellen Jordan and Karen Miller; * William Janvary and Claire Janvary; * Cliff Yarbrough et al.; * Dean Stack; * Bradley Lucy and Nicolle Romani; and * William Douglas and Carol Douglas A copy of one of the District Court's Jan. 16-dated Orders is available at http://is.gd/2Q6Bcmfrom Leagle.com. About Little Loan Shoppe LLS America LLC, doing business as Little Loan Shoppe, operated an online payday loan business. Affiliate Team Spirit America provided the manpower, management and equipment for Little Loan Shoppe. The companies are among a multitude of Canadian and American business entities owned and operated by Doris E. Nelson, a/k/a Dee Nelson, a/k/a Dee Foster. Investors claimed Ms. Nelson operated a Ponzi scheme. Ms. Nelson allegedly told investors they could earn as much as 60% on money her companies used to make payday loans to consumers. American and Canadian investors bought notes worth US$29 million and another C$26,000,000. However, the investors received no payments after March 2009. One investor group placed a related company, LLS-A LLC, into bankruptcy in July 10, 2009. LLS America LLC filed for bankruptcy (Bankr. D. Nev. Case No. 09-23021) on July 21, 2009, before Judge Linda B. Riegle. Gregory E. Garman, Esq., at Gordon Silver, served as the Debtor's counsel. In its petition, the Debtor disclosed $2,661,584 in assets and $24,013,837 in debts. The petition was signed by Ralph Gamble, CEO of the Company. The case was subsequently moved to Washington state (Bankr. E.D. Wash. Case No. 09-06194). Charles Hall was appointed as examiner in the case. LOCAL SERVICE: Zoning Dispute Won't Proceed as Class Action ----------------------------------------------------------- District Judge Lewis T. Babcock denied the Motion for Class Certification Pursuant to Rule 23, Fed. R. Civ. P., filed by plaintiffs in the lawsuit, ONYX PROPERTIES LLC, a Colorado Limited Liability Company; EMERALD PROPERTIES, LLC, a Colorado Limited Liability Company; VALLEY BANK AND TRUST, a Colorado State Bank; PAUL NAFTEL, an individual; SHAUNA NAFTEL, an individual; and The Estate of LOCAL SERVICE CORPORATION by and through its Chapter 11 Bankruptcy Trustee, SIMON E. RODRIGUEZ, Plaintiffs, v. BOARD OF COUNTY COMMISSIONERS OF ELBERT COUNTY, Defendant; and KENNETH G. ROHRBACH, KAREN L. ROHRBACH, PAUL K. ROHRBACH, and COMPOST EXPRESS, INC., a Colorado corporation, Plaintiffs, v. BOARD OF COUNTY COMMISSIONERS OF ELBERT COUNTY, in its official capacity, Defendant, Civil Case No. 10-cv-01482-LTB-KLM, Consolidated w/11- cv-02321-RPM-MJW (D. Colo.). The Plaintiffs owned large tracts of property in Elbert County, Colorado, that they sought to divide into 35-acre parcels for development and sale in 2004 to 2006. The Plaintiffs filed the lawsuit against the Board of County Commissioners in June 2010, assert that the BOCC violated their constitutional rights to due process by improperly enacting and subsequently enforcing illegal or non-existent zoning regulations, and related zoning map, against them and other property owners in Elbert County. The Plaintiffs raise individual claims under 42 U.S.C. Sec. 1983 for the loss of their individual property rights without due process of law. They also assert class claims under Sec. 1983 against the BOCC seeking damages and injunctive relief. Judge Babcock ruled that the proposed class is not sufficiently cohesive to warrant adjudication by representation. A copy of the Court's Jan. 17, 2013 Memorandum Opinion and Order is available at http://is.gd/s7iMnjfrom Leagle.com. Local Service Corporation filed for Chapter 11 bankruptcy (Bankr. D. Colo. Case No. 08-15543) on April 25, 2008. In June 2010, the U.S. Trustee's Office appointed Simon Rodriguez as the Chapter 11 trustee for the LSC estate. John D. Watson, who held stock interests in LSC, is a debtor in a separate Chapter 7 case. Jeffrey A. Weinman was appointed as the Chapter 7 trustee for Mr. Watson's bankruptcy estate (Bankr. D. Colo. Case No. 07-21077) in February 2008. Mr. Weinman became the sole board member of LSC, elected himself President, and was authorized to make decisions for LSC. LYON WORKSPACE: Proposes March 21 Auction for Assets ---------------------------------------------------- Lyon Workspace Products, L.L.C., and its affiliates have not yet signed a contract with a buyer to open the auction for the assets. Nonetheless, the Debtors seek to pursue the sale process on an expedited schedule in order to maximize value and ensure a successful result in the Chapter 11 Cases. The Debtors will appear before Judge Janet S. Baer on Jan. 23 at 9:30 a.m. to seek approval of proposed bid procedures in connection with the sale of substantially all of their assets. The Debtors propose this timeline: Event Date ----- ---- Submission of initial bids for potential stalking horse bidders March 7, 2013 Submission of bids for some or All of the assets March 14, 2013 Auction for assets March 21, 2013 Sale Objection Deadline March 28, 2013 Sale Hearing April 4, 2013. The Debtors said its precarious cash position and the terms of its DIP financing facility require that the Sale occur on the proposed timeline. The Debtors believe that every day spent in Chapter 11 increases the risk of business loss and value deterioration. Moreover, the Debtors believe that the value of the operating business will be maximized through a going-concern sale and not through a restructuring of the Debtors' debts and equity. The Debtors seek allowance of the right to designate a stalking horse bidder, subject to the Court's approval, if, in their sound business judgment, an appropriate stalking horse bidder can be identified from the qualified bidders who submit bids prior to the preliminary bid deadline. The Debtors will have the option to sell the assets in a single lot or in several lots based on whichever bid or combination of bids for all the purchased assets will maximize value to their estates. The Debtors reserve the right to file and seek confirmation of a liquidating plan of reorganization pursuant to Section 1123 of the Bankruptcy Code. The Debtors said that no known potential bidder for the assets is an insider. About Lyon Workspace Lyon Workspace Products, L.L.C. and seven affiliates sought Chapter 11 protection (Bankr. N.D. Ill. Lead Case No. 13-2100) on Jan. 19, 2012. Lyon Workspace -- http://www.lyonworkspace.com/-- is a manufacturer and supplier of locker and storage products. It has 400 full-time employees, 53% of whom are salaried employees. The weekly payroll is $200,000. Eight percent of the employees are members of the Local Union No. 1636 of the United Steelworkers of America, A.F.L.-C.I.O. Attorneys at Perkins Coie LLP serve as counsel to the Debtors. Kurtzman Carson Consultants LLC is the claims and notice agent. LYON WORKSPACE: Soliciting Going-Concern Offers for Assets ---------------------------------------------------------- Lyon Workspace Products, L.L.C., the Illinois-based company that manufactures lockers, workspaces and other top-quality storage solutions, filed for Chapter 11 reorganization on Jan. 19, 2013. Lyon intends to solicit offers for the sale of substantially all of its assets on a going-concern basis under Section 363 of the United States Bankruptcy Code. Lyon has over 100 years of experience in manufacturing and selling a range of high quality fabricated steel storage and workspace products -- including lockers, shelving and storage racks, modular drawer cabinets, ergonomic workplace furniture, and other storage cabinets. It is a leading manufacturer of steel lockers for school, athletic, business, club and industrial applications. Lyon's products are marketed nationwide through a network of industrial distributors, dealers and catalogs. Its customers include Fortune 1000 companies, U.S. government agencies, schools and medical institutions. Lyon also markets its products directly to school districts and general contractors for school construction and renovation Facing high labor costs and rising commodity costs, Lyon has successfully navigated a competitive environment over the last ten years, but has recently been unable to meet its operational needs with its available line of credit. Lyon and its secured lenders have determined that the best solution for Lyon and all of its creditors is to offer the company for sale on a going-concern basis. Lyon believes that there is significant value in its products, its facility, its brand names and its customer goodwill. By offering its business for sale on a going-concern basis, Lyon believes it can the maximize value of these assets for its estate and creditors and preserve as many jobs for its employees as possible. In fact, Lyon believes that the company is in a position to grow revenues and profitability significantly in a reasonable timeframe. Bidding procedures for the Company and terms of a sale are subject to approval by the Bankruptcy Court. The Preliminary Bid Deadline for potential bidders is March 7, 2013. Lyon has set up an online data room for qualified parties interested in pursuing this opportunity. Inquiries should be directed to Lyon's financial advisors, Robert Wanat at (773) 724- 2082 or r.wanat@focusmg.com and Tim Pruban at (773) 724-2082 or t.pruban@focusmg.com or its counsel Daniel A. Zazove of Perkins Coie at (312) 324-8604 or dzazove@perkinscoie.com Lyon Workspace -- http://www.lyonworkspace.com/-- has 400 full- time employees, 53% of whom are salaried employees. The weekly payroll is $200,000. Eight percent of the employees are members of the Local Union No. 1636 of the United Steelworkers of America, A.F.L.-C.I.O. Lyon Workspace estimated at least $10 million in assets and liabilities. LYON WORKSPACE: Has $22.3-Million of DIP Financing -------------------------------------------------- Lyon Workspace Products, L.L.C., and its affiliates seek approval from the Bankruptcy Court to obtain postpetition financing and use cash collateral. The Debtors have arranged DIP financing up to the aggregate principal amount of $22,327,344 from Capital One Leverage Finance Corp., Cole Taylor Bank or one of their affiliates Capitol One is the existing secured lender and is owed $18.2 million under prepetition loans. The DIP facility will have priority over any and all administrative expenses, subject to a carve-out, and will be secured by a perfected first priority security interest upon all unencumbered property of the Debtor. The DIP Lender will receive a lien on bankruptcy-related causes of action, including but not limited to all causes of action under chapter 5 of the Bankruptcy Code, including Sections 544 through 550 and ? 553 or other applicable law, but only in the circumstance that the aggregate debt is in excess of the prepetition debt. The Debtors believe that this provision is appropriate because it only takes effect if the size of the DIP loan is greater than the post-petition collateral (excluding the bankruptcy causes of action) and liens on avoidance actions are required to adequately protect the DIP Lender's loan. There will be a $25,000 cap on costs and expenses used by the Committee's professionals to investigate and make a challenge to the validity, perfection and amount of the DIP Lender's prepetition liens. The DIP lenders will have a right to credit bid with respect to any bulk or piecemeal sale of all or any portion of the assets. A hearing to consider interim approval of the DIP financing is scheduled for Jan. 23. The Debtors contemplate a final hearing in February 2013. About Lyon Workspace Lyon Workspace Products, L.L.C. and seven affiliates sought Chapter 11 protection (Bankr. N.D. Ill. Lead Case No. 13-2100) on Jan. 19, 2012. Lyon Workspace -- http://www.lyonworkspace.com/-- is a manufacturer and supplier of locker and storage products. It has 400 full-time employees, 53% of whom are salaried employees. The weekly payroll is $200,000. Eight percent of the employees are members of the Local Union No. 1636 of the United Steelworkers of America, A.F.L.-C.I.O. Attorneys at Perkins Coie LLP serve as counsel to the Debtors. Kurtzman Carson Consultants LLC is the claims and notice agent. MARKET STREET: Plan of Reorganization Declared Effective -------------------------------------------------------- Market Street Properties, LLC, notified the U.S. Bankruptcy Court for the Eastern District of Louisiana that the effective date of its Fourth Amended Plan of Reorganization with Immaterial Modifications as of Oct. 18, 2012, occurred on Nov. 16, 2012. The Plan, which was confirmed on Oct. 24, 2012, provides that the first two mortgages, totaling about $13.1 million, are to be paid in full with debt maturing in a year. There will be no payments in the meantime. Unsecured creditors with $17.2 million in claims are to divide $100,000. About Market Street Properties Market Street Properties, L.L.C., the owner of seven acres on the riverfront in New Orleans, filed for Chapter 11 bankruptcy (Bankr. E.D. La. Case No. 09-14172) on Dec. 23, 2009, represented by Christopher T. Caplinger, Esq., Joseph Patrick Briggett, Esq., and Stewart F. Peck, Esq., at Lugenbuhl Wheaton Peck Rankin & Hubbard, in New Orleans. Cupkovic Architecture LLC serves as the Debtor's architect; and Patrick J. Gros, CPA, as accountant. James E. Fitzmorris, Jr., serves as political consultant and advisor. The Company disclosed $52,404,026 in assets and $26,848,596 in liabilities as of the Chapter 11 filing. An official committee of unsecured creditors has not been appointed in the Debtor's case. MMRGLOBAL INC: Stresses Accomplishments in Letter to Shareholders ----------------------------------------------------------------- MMRGlobal, Inc., released a letter to the Company's shareholders from Robert H. Lorsch, the chairman and chief executive officer of the Company, highlighting the Company's accomplishments in the prior year and sharing its plans for the current year. Dear MMRF Shareholders: MMRGlobal Management would like to take this opportunity to highlight some of its accomplishments from 2012 and to share our plans for 2013. The Company now owns seven U.S. patents and has nearly 400 claims focused on the digital transmission of medical records, including Personal Health Records (PHRs). The Company also has additional U.S. patent applications pending, which include numerous continuation applications. Internationally, the Company has issued patents and pending applications in countries of commercial interest such as Australia, Singapore, New Zealand, Mexico, Canada, Hong Kong, Japan, South Korea, Israel, and European nations. MMR has met with significant success in our early licensing efforts based on a five-plus year industry-wide awareness of the Company's intellectual property and its relevance to the market. In 2013, the Company will aggressively pursue infringement claims and plans on commencing litigation starting this month against companies in healthcare, retail and other markets. Over the last month, we have entered into licensing agreements with EMR vendors, a laboratory reporting services vendor, a document management systems vendor providing services to more than 750 hospitals and a Personal Health Record provider. We believe that this trend will continue. Based on government regulations and the breadth of its patent portfolio, MMR is well positioned to monetize its intellectual property given requirements under the law pertaining to HIPAA, the HITECH Act and Meaningful Use Stages 2 and 3. The Company believes hospitals, healthcare professionals and certain vendors responding to the current needs of the market will need licenses from the Company, or they could infringe upon MMR's portfolio of intellectual property. The Company also anticipates receiving the next portion of milestone payments under its $13,000,000 license agreement with a biotech company as originally filed in a Form 8-K with the SEC on December 21, 2010. Globally, the Company will continue to exploit its biotech IP and will retain experts in 2013 to help monetize its patents, patient samples and other IP. On September 27, 2012, the Company announced the signing of an agreement with our Australian licensee, VisiInc PLC, incorporated in the Company's third quarter filing as Exhibit 10.1. The Agreement calls for the sale of more than 1,000 MMRPro systems through a large reseller of medical products and services to healthcare professionals. As of September 30, 2012, we had delivered the first 25 MMRPro systems. Since that time, the Company is continuing scheduled deliveries. MMRPro will be bundled with other Visi products and marketed as VISI MMRPro, which is being sold through the Seagate VAR and OEM channels including the Burkhart Dental channel. Last week, MMR participated in a demonstration of Connected Health in the Alcatel-Lucent and ng Connect Partners booth at the International Consumer Electronics Show. During the show, MMR demonstrated its role as the untethered PHR to wellness solutions. The Company has been working with Alcatel-Lucent's Connected Hospital Sales team using MMR's MyMedicalRecords.com PHR and portal for patients and physicians to receive and store medical records created by Telemedicine and Telehealth systems. We plan on deploying these services with licensees and customers this year. As part of our Telemedicine and Telehealth initiatives, and following MMR's attendance at the Verizon and Alcatel-Lucent Annual Healthcare and Life Science Symposium last November 13-14, we are continuing active discussions with Verizon and other wireless carriers and plan on announcing strategic relationships in 2013. The Company is also investing in building numerous wireless interfaces to our Personal Health Record and MMRPro professional services. The growth in Telemedicine will also fuel the value of the Company's IP. Because Telemedicine portals require connectivity to the patient, this gives MMR the opportunity to increase revenue by offering a combined Alcatel-Lucent platform with MMR's patented PHR through organizations and employers with direct connection to the doctor and wellness management tools. The Company is also beginning to see a trend towards providing Personal Health Records for animals. Through relationships with Pets Best Insurance, horse owners and Dancing Paws, which I founded, we intend to sell our PHR into the five billion dollar U.S. pet market. We also believe that there are a number of veterinarian IT systems providers that also infringe on the Company's patents and which we also plan on pursuing. In 2012, we introduced the first Prepaid Personal Health Record card designed for distribution in retail. This year, consumers will be able to purchase cards nationwide. In 2012, MMR also entered into agreements to distribute personal health records to seniors through home health care agencies, retirement communities, associations, and assisted living centers. Additionally, with the passage of the Medicare 30-Day Readmission Rule, the Company expects to expand that initiative working with providers and nursing associations. In April, our Chinese Joint Venture partner, Unis-Tongue, began integrating a Chinese language version of our MyMedicalRecords.com PHR in hospitals in Henan Province. Henan Province alone has over 100 million residents. In 2012, MMR also received numerous patents in Mexico. As a result, Mexico now represents an important licensing and business opportunity. Hector V. Barreto, a former member of MMRGlobal's Board of Directors who chairs the Company's Board of Advisors, is assisting MMR in Mexico. Hector spent five years as Administrator of the U.S. Small Business Administration and currently serves as Chairman of The Latino Coalition. He also received the "Aguila Azteca" award, which is the highest recognition bestowed by Mexico to a citizen of another country. This year, the Company is planning to increase its visibility in Washington D.C., providing a voice to the value of using stimulus monies to fund an untethered Personal Health Record for all Americans from the point-of-view of a small business enterprise. Meetings with members of the Congressional Science Committee overseeing health IT matters are being scheduled at this time. On behalf of MMRGlobal and its employees, may I wish you, your family and friends the happiest, healthiest and most prosperous year as we look forward to a great 2013. Sincerely, Robert H. Lorsch, MMRGlobal Chairman and CEO Follow me on Twitter at BobLorschTweets 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 Sept. 30, 2012, showed $2.02 million in total assets, $8.48 million in total liabilities, and a $6.45 million total stockholders' deficit. MONTANA ELECTRIC: Accord Permits Yellowstone to Quit Coop --------------------------------------------------------- Richard Ecke, writing for Great Falls (Mont.) Tribune, reports that Yellowstone Valley Electric, the largest customer of Southern Montana Electric Generation and Transmission Cooperative, will quit the group under a settlement with the umbrella co-op's trustee. A settlement between Yellowstone Valley and Lee Freeman, appointed trustee for Southern Montana, was filed late Friday with the federal bankruptcy court. The report relates the terms of the settlement include a $2.5 million payment by Yellowstone Valley to the bankruptcy estate, and an agreement that Yellowstone Valley will turn over to Southern Montana 11 megawatts of low-cost federal power it buys from the Western Area Power Administration, and retain 9 megawatts out of a total of 20 megawatts it is to receive from WAPA through 2020. According to the report, the departure of Yellowstone Valley Electric as of April 30 would mean the loss of more than 40% of the power load of the Billings-based Southern Montana Electric Generation and Transmission Cooperative. The report also relates the city of Great Falls also wants to leave the Cooperative, but the city's prospects remained unclear despite Yellowstone Valley's success last week. Representatives from the city and Southern Montana have held mediation sessions, but no settlement was reached. Most of the city's customers quit buying electricity from Electric City Power after the city and Southern Montana, its wholesale power supplier, raised rates sharply in 2011. The report also relates Mr. Freeman has until Feb. 15 to provide details about his reorganization plan for Southern Montana. Mr. Freeman said he wants to continue the co-op for up to 10 more years to help the group pay off some of its debts. The group faces more than $400 million in claims with just a few assets, including a power plant worth that may be worth less than $40 million. Southern Montana also pledged power contracts of five of its members to obtain $85 million in loans to build the Highwood Generating Station east of Great Falls. Mr. Freeman on Jan. 8 asked the bankruptcy court for permission to hire MR Valuation Consulting of Colts Neck, N.J., at an initial cost of $15,000 to appraise the power plant. About Southern Montana Electric Based in Billings, Montana, Southern Montana Electric Generation and Transmission Cooperative, Inc., was formed to serve five other electric cooperatives. The city of Great Falls later joined as the sixth member. Including the city, the co-op serves a population of 122,000. In addition to Great Falls, the service area includes suburbs of Billings, Montana. Southern Montana filed for Chapter 11 bankruptcy (Bankr. D. Mont. Case No. 11-62031) on Oct. 21, 2011. Southern Montana estimated assets of $100 million to $500 million and estimated debts of $100 million to $500 million. Timothy Gregori signed the petition as general manager. Malcolm H. Goodrich, Esq., at Goodrich Law Firm, P.C., in Billings, Montana, serves as the Debtor's counsel. After filing for reorganization in October, the co-op agreed to a request for appointment of a Chapter 11 trustee. Lee A. Freeman was appointed as the Chapter 11 trustee in December 2011. He is represented by Joseph V. Womack, Esq., at Waller & Womack, and John Cardinal Parks, Esq., Bart B. Burnett, Esq., Robert M. Horowitz, Esq., and Kevin S. Neiman, Esq., at Horowitz & Burnett, P.C. MOORE FREIGHT: Lender Agrees to Use of Cash Collateral ------------------------------------------------------ The U.S. Bankruptcy Court for the Middle District of Tennessee signed an agreed order that allows debtors Moore Freight Service, Inc., et al., to use cash collateral provided that it provide adequate protection payments to Webster Capital Finance, Inc., formerly known as Center Capital Corporation. Prepetition, the Debtor failed to make the requisite monthly payments due to secured creditor Webster under a certain master loan agreement and loan schedules. Webster Capital and the Debtor desire to settle all disputes related to the motion for relief from the automatic stay or in the alternative adequate protection. The parties agreed that, among other things: 1. The automatic stay will remain in place and effective in the Debtor's case related to the collateral, provided that the Debtor complies with its obligations. 2. As adequate protection for the Debtor's continuing use of the collateral, the Debtor will pay via wire transfer to Webster Capital $10,900 per month, due on or before the 15th of each month and continuing until the parties negotiate acceptable treatment of Webster Capital's secured claim under a plan of reorganization. 3. The Debtor will maintain the proper insurance coverage on the collateral. 4. The Debtor will market assets identified under the Loan Schedule No. 2 collateral for a commercially reasonably sale. 5. At the time as the Loan Schedule No. 2 collateral is sold, assigned and transferred the Debtor's monthly adequate protection payments to Webster Capital will be reduced to $10,150 per month, due on or before the 15th of each month and continuing until the parties negotiate acceptable treatment of Webster Capital's secured claim under a plan of reorganization. 6. All monthly adequate protection payments required to be paid to Webster Capital under the order will be made via ACH payment to Webster Capital. 7. In the event that the Debtor defaults under any obligations and then fails to cure such default within 10 days thereafter, Webster Capital may file with the Bankruptcy Court an "Affidavit of Default," and relief from the automatic stay will immediately and without further need for further pleading, action, or order enter with respect to the collateral. About Moore Freight Service and G.R.E.A.T. Logistics Moore Freight Service, Inc. and G.R.E.A.T. Logistics Inc. sought Chapter 11 protection (Bankr. M.D. Tenn. Case Nos. 12-08921 and 12-08923) in Nashville on Sept. 28, 2012. Moore Freight is a freight service company specializing in flat gas transportation. Founded in 2001, Moore is the largest commercial flat glass logistics firm in the U.S. It operates in the U.S., Canada and Mexico. GLI does not have any operations other than the limited, occasional freight brokerage services currently provided to Moore Freight. Bankruptcy Judge Keith M. Lundin oversees the cases. Attorneys at Harwell Howard Hyne Gabbert & Manner PC serve as counsel. LTC Advisory Services LLC serves as the Debtor's financial advisors. Moore Freight estimated assets and debts of $10 million to $50 million. CEO Dan R. Moore signed the petitions. Counsel for the Debtor's pre-bankruptcy and DIP lender, Marquette Transportation Finance, Inc., are Linda W. Knight, Esq., at Gullett, Sanford, Robinson & Martin, PLLC; and Thomas J. Lallier, Esq., at Foley & Mansfield PLLP. MUSCLEPHARM CORP: Files Certificate of Designation of Pref. Stock ---------------------------------------------------------------- MusclePharm Corporation filed with the Nevada Secretary of State a Certificate of Designation of the Series D Convertible Preferred Stock, which created the series of preferred stock. The Series D Preferred Stock ranks, with respect to dividend rights and rights on liquidation, dissolution and winding-up of the affairs of the Company, equal to the common stock and junior to each other class or series of the Company's capital stock, the terms of which expressly provide that such other class or series ranks senior to the Series D Preferred Stock as to dividends or upon liquidation, dissolution and winding-up, or as to any other right or preference. The Series D Preferred Stock votes together with the common stock on an as-converted basis, but not in excess of the conversion limitations. Except as otherwise required by law, the holders of shares of Series D Preferred Stock vote together with the holders of common stock on all matters and not as a separate class. A copy of the Certificate of Designation is available at: http://is.gd/bzFBPs 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. The Company reported a net loss of $23.28 million in 2011, compared with a net loss of $19.56 million in 2010. The Company's balance sheet at Sept. 30, 2012, showed $7.81 million in total assets, $15.10 million in total liabilities, and a $7.29 million total stockholders' deficit. 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. NEDAK ETHANOL: Defaults Under Loans, Winding Down Operations ------------------------------------------------------------ NEDAK Ethanol, LLC, is in default under its loan agreements with both its senior lender, AgCountry Farm Credit Services, FLCA, and its tax increment financing lender, Arbor Bank, and both the Senior Lender and the TIF lender have accelerated the repayment of all amounts due under the respective loan agreements and informed the Company that they intend to exercise their remedies under the respective loan agreements and take those actions as deemed necessary or desirable to protect their interest in the collateral which includes all or substantially all of the assets of the Company. As previously disclosed, the trustee for the Senior Lender has exercised its right to foreclose on the trust property pursuant to the Deed of Trust, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement, as amended, which secures the indebtedness under the Senior Lender loan documents and has initiated foreclosure proceedings to sell the trust property at a sheriff's sale scheduled for 2:00 p.m. on Jan. 22, 2013, inside the front door of the Holt County Courthouse in O'Neil, Nebraska. In addition, the Senior Lender has served the Company with a Notice of Public Sale - Personal Property Collateral relating to certain property of the Company pledged by the Company to the Senior Lender under one or more security agreements, including, without limitation, the Security Agreement dated Feb. 14, 2007, between the Company and the Senior Lender. The property to be sold includes all personal and fixture property, including, without limitation, inventory, equipment, instruments (including notes), letter-of-credit rights, deposit accounts, securities and other investment property, commercial tort claims, contract rights or rights to the payment of money, and all general intangibles, including, without limitation, patents, trademarks, trade names, copyrights, software, customer lists, goodwill, leases, leasehold interests, license, permits and agreements of any kind or nature whatsoever. The Company expects that upon completion of the foreclosure proceedings, there will not be any monies or assets available to distribute to its members or creditors other than the Senior Lender and that the Company will not be in a position to resume operations. A copy of the Notice of Sale is available for free at: http://is.gd/HTjLd3 About NEDAK Ethanol Atkinson, Neb.-based NEDAK Ethanol, LLC -- http://www.nedakethanol.com/-- operates a 44 million gallon per year ethanol plant in Atkinson, Nebraska, and produces and sells fuel ethanol and distillers grains, a co-product of the ethanol production process. Sales of ethanol and distillers grains began in January 2009. NEDAK Ethanol reported a net loss of $781,940 on $152.11 million of revenue in 2011, compared with a net loss of $2.08 million on $94.77 million of revenue in 2010. The Company's balance sheet at March 31, 2012, showed $73.42 million in total assets, $33.68 million in total liabilities, $10.80 million in preferred units Class B, and $28.93 million in total members' equity. Amends Agreement with AgCountry In February 2007, the Company entered into a master credit agreement with AgCountry Farm Credit Services FCA regarding a senior secured credit facility. As of Dec. 31, 2010, and throughout 2011, the Company was in violation of several loan covenants required under the original credit agreement and therefore, the Company was in default under the credit agreement. However, the Company entered into a forbearance agreement with AgCountry which remained effective until June 30, 2011. This default resulted in all debt under the original credit agreement being classified as current liabilities effective as of Dec. 31, 2010. The loan covenants under the original credit agreement included requirements for minimum working capital of $6,000,000, minimum current ratio of 1.20:1.00, minimum tangible net worth of $41,000,000, minimum owners' equity ratio of 50%, and a minimum fixed charge coverage ratio of 1.25:1.00, and also included restrictions on distributions and capital expenditures. On Dec. 31, 2011, the Company and AgCountry entered into an amended and restated master credit agreement pursuant to which the parties agreed to restructure and re-document the loans and other credit facilities provided by AgCountry. Under the amended agreement, the Company is required to make level monthly principal payments of $356,164 through Feb. 1, 2018. Beginning on Sept. 30, 2012, and the last day of the first, second, and third quarters thereafter, the Senior Lender will make a 100% cash flow sweep of the Company's operating cash balances in excess of $3,600,000 to be applied to the principal balance. In addition, the Company is required to make monthly interest payments at the one month LIBOR plus 5.5%, but not less than 6.0%. The interest rate was 6.0% as of Dec. 31, 2011. In addition to the monthly scheduled payments, the Company made a special principal payment in the amount of $7,105,272 on Dec. 31, 2011. As of Dec. 31, 2011, and 2010, the Company had $26,000,000 and $38,026,321 outstanding on the loan, respectively. NEW ENGLAND COMPOUNDING: Bankruptcy Filing Stays Slatton Suit ------------------------------------------------------------- Magistrate Judge John S. Bryant in Nashville, Tenn., stayed the proceedings in the lawsuit, JOHN JAY SLATTON, et al., Plaintiffs, v. NEW ENGLAND COMPOUNDING PHARMACY, INC., Defendant, No. 3:12- 1224 (M.D. Tenn.), in view of the defendant's Chapter 11 filing. The Court also cancelled an initial case management conference scheduled for Jan. 28, 2013, in the lawsuit. A copy of the Court's Jan. 17, 2013 Order is available at http://is.gd/cxFuWu from Leagle.com. About New England Compounding New England Compounding Pharmacy Inc., filed a Chapter 11 petition (Bankr. D. Mass. Case No. 12-19882) in Boston on Dec. 21, 2012. Judge Henry J. Boroff oversees the case. Daniel C. Cohn, Esq., at Murtha Cullina LLP, serves as counsel. Verdolino & Lowey, P.C. is the financial advisor. The Debtor estimated assets and liabilities of at least $1 million. The Debtor owns and operates the New England Compounding Center is located in Framingham, Mass. The company said at the outset of bankruptcy that it would work with creditors and insurance companies to structure a Chapter 11 plan dealing with personal injury claims. The outbreak linked to the pharmacy has killed 39 people and sickened 656 in 19 states, though no illnesses have been reported in Massachusetts. In October, the company recalled all its products, not just those associated with the meningitis outbreak. The petition was signed by Keith D. Lowey, director and chief restructuring officer. NEW ENGLAND COMPOUNDING: Thusday Hearing on Trustee Appointment --------------------------------------------------------------- The Associated Press reports a hearing is scheduled Thursday in U.S. Bankruptcy Court in Springfield, Mass., on the request of U.S. Trustee William Harrington to appoint an independent trustee to oversee the bankruptcy proceedings of the New England Compounding Center, which has been linked to a fungal meningitis outbreak that's killed 44 and sickened more than 600. Mr. Harrington requested for a Chapter 11 trustee, citing reasons including the firm's "gross incompetence" and a purported conflict of interest involving the accountant the firm chose to lead it through bankruptcy. The company opposes the request, saying it would hinder progress toward establishing the fund. About New England Compounding New England Compounding Pharmacy Inc., filed a Chapter 11 petition (Bankr. D. Mass. Case No. 12-19882) in Boston on Dec. 21, 2012. Judge Henry J. Boroff oversees the case. Daniel C. Cohn, Esq., at Murtha Cullina LLP, serves as counsel. Verdolino & Lowey, P.C. is the financial advisor. The Debtor estimated assets and liabilities of at least $1 million. The Debtor owns and operates the New England Compounding Center is located in Framingham, Mass. The company said at the outset of bankruptcy that it would work with creditors and insurance companies to structure a Chapter 11 plan dealing with personal injury claims. The outbreak linked to the pharmacy has killed 39 people and sickened 656 in 19 states, though no illnesses have been reported in Massachusetts. In October, the company recalled all its products, not just those associated with the meningitis outbreak. The petition was signed by Keith D. Lowey, director and chief restructuring officer. NEW ENGLAND COMPOUNDING: Brown Rudnick Represents Creditors ----------------------------------------------------------- New England Compounding Center (NECC), the Massachusetts compounding pharmacy at the center of the nation's deadly fungal meningitis outbreak, revealed in bankruptcy court filings late on Friday, January 18 that since December 2011 it had paid more than $21 million to NECC's four primary owners, Barry Cadden, Gregory Conigliaro, Carla Conigliaro and Lisa Conigliaro-Cadden, and other NECC insiders. Details of these insider transfers can be found in the court filings. See US Bankruptcy Court Case 12-19882, Doc 68, Filed 01/18/13, Document Pages 166 of 208. Brown Rudnick LLP on Friday was selected to represent the Official Committee of Unsecured Creditors in the bankruptcy of NECC, including the victims who received injections of tainted steroids traced to NECC. The Committee and Brown Rudnick are examining information concerning money transfers to insiders and considering the appropriate legal responses. A hearing is scheduled for Thursday, January 24 at the U.S. Bankruptcy Court in Springfield, Massachusetts as to whether the Court should order an independent trustee to replace NECC's board of directors. "NECC has shown a shocking disregard for safety measures that should have been followed in its facility after failing inspection after inspection for years," said William R. Baldiga, a partner at Brown Rudnick representing the Creditor Committee. "The company was operating under unsafe conditions, yet clearly had the funds to ensure its compliance with all appropriate regulations to protect the health and well being of patients to be injected with its products." "The Committee's statutory duty is to help ensure that the property of the estate is protected, taken under control of the estate and made available to victims and creditors with claims against the company," commented Brown Rudnick partner David Molton, who also represents the Committee. Mr. Molton continued, "It is disturbing that significant amounts of company property were taken by insiders during the same period when they were permitting abhorrent conditions at the company that ultimately led to the injury and death of innocents." "We may still be at the tip of the iceberg in terms of the number of victims who will become ill or die as result of receiving injections of the tainted material," say Anne Andrews of Andrews & Thornton, Irvine, Calif. and Harry Roth of Cohen Placitella & Roth PC, Philadelphia, PA, Co-Chairs of the Official Committee of Unsecured Creditors. "New victims are emerging who instead of coming down with meningitis, have developed fungal abscesses that are almost impossible to treat. Tragically, many individuals have yet to realize they have been sickened with an abscess, and have yet to be diagnosed. The bankruptcy process will help to identify these now silent victims so they too can be treated fairly in this process. The vast medical complications of this tragedy have yet to be fully understood as the number of victims mount." To date, the outbreak has already killed 44 people and sickened 678, according to the U.S. Centers for Disease Control and Prevention. More than 14,000 people have been exposed to the drugs, which are injected to ease back pain. The Members of the Official Committee of Unsecured Creditors are: -- Anne Andrews, Esq. of Andrews & Thornton, representing Katrina Eldreth (co-chair of the Committee) -- Harry Roth, Esq./Michael Coren, Esq. of Cohen Placitella & Roth PC, representing Meghan A. Handy (co-chair of the Committee) -- Marc Lipton, Esq. of Lipton Law, representing Brenda Bonsale -- Tom Sobol, Esq. of Hagens Berman Sobol Shapiro LLP, representing Robert Cole -- Terry Dawes, Esq. of Fieger Law, representing Victor Davis -- Melvin Wright, Esq. representing Kathleen Distler -- Greg Skikos, Esq. of Skikos Crawford Skikos, representing Danny Swartzell -- Michael D. Galligan, Esq. of Galligan Newman, representing Bertram Walker Bryant, Jr. -- Honor Heath, Esq. representing NStar Electric Company About New England Compounding New England Compounding Pharmacy Inc., filed a Chapter 11 petition (Bankr. D. Mass. Case No. 12-19882) in Boston on Dec. 21, 2012. Daniel C. Cohn, Esq., at Murtha Cullina LLP, serves as counsel. Verdolino & Lowey, P.C. is the financial advisor. The Debtor estimated assets and liabilities of at least $1 million. The Debtor owns and operates the New England Compounding Center is located in Framingham, Mass. The company said at the outset of bankruptcy that it would work with creditors and insurance companies to structure a Chapter 11 plan dealing with personal injury claims. The outbreak linked to the pharmacy has killed 39 people and sickened 656 in 19 states, though no illnesses have been reported in Massachusetts. In October, the company recalled all its products, not just those associated with the meningitis outbreak. NNN 3500: Hiring Darvy Mack Cohan as Counsel -------------------------------------------- NNN 3500 Maple 26, LLC, asks the U.S. Bankruptcy Court for the Central District of California for authorization to employ Darvy Mack Cohan, Esq., as its counsel. Mr. Cohan says he has no connection with the Debtor, creditors or any other party-in-interest, their respective attorneys or accountants, the United States Trustee or any person employed by the office of the U.S. Trustee, and has no adverse interest to that of the Debtor. Mr. Cohan will be compensated for professional services at an hourly rate of $400. Paralegal services will be billed at $125 Per hour. In the event Mr. Cohan, due to conflict of scheduling, must employ an associate attorney to provide such services, the Debtor has agreed to compensate such associate attorney at $250 per hour. NNN 3500 Maple 26, LLC, based in Costa Mesa, Calif., filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 12-23718) on Nov. 30, 2012. Judge Scott C. Clarkson presides over the case. In its schedules, the Debtor disclosed $45,563,241 in total assets and $46,658,593 in total liabilities. NNN LENOX: Section 341(a) Meeting Set for April 1 ------------------------------------------------- The U.S. Trustee for Region 10 will convene a meeting of creditors in NNN Lenox Park 9, LLC's Chapter 11 case on Jan. 30, 2013, at 1 p.m. The meeting will be held at Room 115 Federal Building, New Albany, New York. Objections, if any to dischargeability are due by April 1, according to the notice of the meeting. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This meeting of creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. About NNN Lenox New Albany, Indiana-based NNN Lenox Park 9, LLC, owns the undivided 2.795% tenant in common interest in two four-story office buildings located at 3175 Lenox Park Drive & 6625 Lenox Park Drive, Memphis, Shelby County, Tennessee. The Lenox Park Buildings A & B contain 193,029 square footage of office space and 853 surface parking spaces in adjoining parking. NNN Lenox filed a Chapter 11 petition (Bankr. S.D. Ind. Case No. 12-92686) in New Albany, Indiana, on Dec. 4, 2012, on the eve of a non-judicial foreclosure of the Property in Memphis, Shelby County, Tennessee. The Debtor, a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101(51B), estimated at least $10 million in assets and liabilities. Judge Basil H. Lorch, III, presides over the case. Mubeen Aliniazee, president of Highpoint Management Solutions, LLC, has been named the restructuring officer. Jeffrey M. Hester, Esq., at Tucker Hester, LLC, in Indianapolis, serves as counsel to the Debtor. NORTHAMPTON GENERATING: Plan Hearing Continued Until Jan. 29 ------------------------------------------------------------ The U.S. Bankruptcy Court for the Western District of North Carolina continued until Jan. 29, 2013, the hearing to consider confirmation of Northampton Generating Company, L.P.'s Plan of Reorganization. The Court earlier entered an ex parte order conditionally approving Disclosure Statement. According to the Disclosure Statement dated Dec. 21, 2012, the Plan provides for: -- the continued operation and growth of the Debtor's energy generating operations; -- the cancellation of existing equity interests and the issuance of new equity interests; -- an equity infusion by the beneficial owners which will provide additional liquidity to the Debtor; and -- payments to certain creditors. The estimated recoveries by creditors and interest holders under the Plan are: Claims Amount of Estimated Claim Recovery ------ ---------- --------- Senior Bond Claims $73,441,496 68% Junior Bond Claims $21,788,749 2% Claim of Horwith $1,500,000 100% Leasing Co., Inc. and Frank and Geraldine Horwith Convenience Class $58,000 100% Claims General Unsecured Claims $0 0% Debtor Subsidiary Claims $680,000 100% Intercompany Claims $2,937,000 100% Affiliate Service Claims and Affiliate Administrative Claims $29,840,000 8% Partnership Interests 0% Interests in Debtor Subsidiaries 100% Under the Plan, on the Effective Date, the reinvesting beneficial owner will fund to the Debtor to fund investments in the Reorganized Debtor of $10,000,000 which amount will be sufficient to fund the costs and expenses of the Plan and will provide the Reorganized Companies cash on hand, after accounting for payments made or reserved on the Effective Date, in an amount of not less than the sum of (i) $3,500,000 plus, (ii) a "Horwith Deferral Amount". A copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/NORTHAMPTON_GENERATING_ds.pdf About Northampton Generating Northampton Generating Co. LP is the owner of a 112 megawatt electric generating plant in Northampton, Pennsylvania. The plant is fueled with waste products, including waste coal, fiber waste, and tires. The power is sold under a long-term agreement to an affiliate of FirstEnergy Corp. Northampton Generating filed for Chapter 11 bankruptcy (Bankr. W.D.N.C. Case No. 11-33095) on Dec. 5, 2011. Hillary B. Crabtree, Esq., and Luis Manuel Lluberas, Esq., at Moore & Van Allen PLLC, in Charlotte, N.C., serve as counsel to the Debtors. Houlihan Lokey Capital, Inc., is the financial advisor. The Debtor disclosed $205,049,256 in assets and $121,515,045 in liabilities as of the Chapter 11 filing. No request for the appointment of a trustee or examiner has been made, and no statutory committee or trustee has been appointed in the case. PENNFIELD CORP: Cargill's $9.8MM Tops Auction; Price Rose $1.3MM ---------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Cargill Inc., the largest closely owned company in the U.S., won the right to purchase animal feed producer Pennfield Corp. at an auction and sale-approval hearing conducted last week in U.S. Bankruptcy Court in Philadelphia. The report notes that although the price rose $1.3 million at auction, the $9.8 million cash from Cargill won't match the $15.6 million Pennfield would have received if the first court-approved sale hadn't fallen through. Pennfield declared original purchaser Carlisle Advisors LLC in default on Dec. 19 under a contract approved in November. Nine days later, Pennfield had Cargill under contract. There was "competitive bidding" at the Jan. 17 hearing, Cargill spokesman Tim Loesch said in a telephone interview. Cargill made the opening bid of $8.5 million. About Pennfield Corporation Pennfield Corporation and Pennfield Transport Company filed a Chapter 11 petition (Bankr. E.D. Pa. Case No. 12-19430 and 12-19431) on Oct. 3, 2012, in Philadelphia. Founded in 1919, Pennfield is a Lancaster, Pennsylvania-based manufacturer of bulf and bagged feeds for dairy, equine and other commercial and backyard livestock. The company owns and operates three production mills located in Mount Joy, Martinsburg, and South Montrose, in Pennsylvania. The Debtors filed for bankruptcy to sell their assets to Carlisle Advisors, LLC, subject to higher and bettr offers. Carlisle has also agreed to provide a $2.0 million DIP Loan. Judge Bruce I. Fox presides over the case. Attorneys at Maschmeyer Karalis P.C., in Philadelphia, serve as the Debtors' bankruptcy counsel. Skadden, Arps, Slate, Meagher & Flom LLP is the special counsel. Groom Law Group, Chartered, is the employee benefits counsel. AEG Partners LLC is the financial advisor. Lakeshore Food Advisors, LLC, is the investment banker. Pennfield filed official lists showing assets of $7.2 million and liabilities totaling $26.1 million, including $11.3 million in secured claims. Debt includes $10 million owing to secured lender Fulton Bank NA. PIPELINE DATA: Has Access to Cash Collateral Until Feb. 26 ---------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware has already entered four interim orders allowing debtors Pipeline Data, Inc., et al., to use the cash collateral of Camofi Master LDC, as collateral agent, and other senior lender parties, through and including Feb. 26, 2013. The Debtors are indebted to the senior lenders in the aggregate principal amount of $42.1 million, plus $26.8 million outstanding thereunder on account of accrued and unpaid interest, default interest, fees and other obligations. A subsequent hearing on the use of cash collateral will be held on Feb. 26, 2013, at 1:00 p.m. Objections must be filed not later than 4:00 p.m. on Feb. 19. A copy of the Fourth Interim Order dated Jan. 17, 2013, is available at: http://bankrupt.com/misc/pipelinedata.fourthinterimorder.pdf About Pipeline Data Pipeline Data Inc., a processor of debit and credit cards for smaller retailers, filed a Chapter 11 petition (Bankr. D. Del. Case No. 12-13123) on Nov. 19, 2012, in Delaware with plans for selling the business as a going concern. Alpharetta, Georgia-based Pipeline Data provides credit and debit card payment processing services to approximately 15,000 merchants. The Company has 36 employees. Attorneys at Whiteford Taylor Preston LLC, in Wilmington, Delaware, and Kirkland & Ellis L.L.P. serve as counsel. AlixPartners L.L.P. is the financial advisor. Dragonfly Capital Partners L.L.C. is the investment banker. The Debtor estimated assets of $1 million to $10 million and debts of $50 million to $100 million. Pipeline, which sought bankruptcy together with affiliates, owes $66.6 million in principal and interest to first-lien creditors who have liens on all assets. In its schedules, Pipeline Data disclosed $4,491,699 in total assets and $61,595,942 in total liabilities. Ten (10) affiliates of the Debtor filed separate petitions for Chapter 11 (Bankr. D. Del. Case Nos. 12-13124 to 12-13131; Case No. 12-13133 and 12-13134). The cases are jointly administered under Case No. 12-13123). PLC SYSTEMS: Inks Amendment and Waiver to GCP Securities Pact ------------------------------------------------------------- PLC Systems Inc. has entered into an Amendment and Waiver to Securities Purchase Agreement (dated Jan. 16, 2013), with GCP IV LLC, which amends the Securities Purchase Agreement dated as of Feb. 22, 2011, by and between the Company and the Investor, as amended. In accordance with the Agreement, the Company has (i) issued and sold to the Investor, and the Investor has purchased from the Company, an aggregate of $250,000 in principal amount of 5% Senior Secured Convertible Debentures of the Company, and (ii) the Company has issued to the Investor warrants to purchase up to 2.5 million shares of the Company's common stock at an initial exercise price of $0.15 per share. The Debentures bear interest at a rate of 5% per annum, payable quarterly, and mature on Jan. 16, 2016. The Debentures provide that the Investor will have the option at any time prior to the repayment of the Debenture Amount to convert any portion of the Debenture Amount outstanding into fully-paid and non-assessable restricted shares of common stock of the Company, at an initial conversion price of $0.10 per share. All obligations under the Debentures and the Purchase Agreement are secured by a security interest in all assets of the Company and its subsidiaries and all those obligations are guaranteed jointly and severally by the Company's subsidiaries. The Warrants provide the Investor with the right to purchase fully-paid and non-assessable restricted shares of common stock of the Company. The term of the Warrants is five years and the Warrants may be exercised by cash payment or, if there is no effective registration statement registering the shares underlying the Warrants, through cashless exercise by the surrender of warrant shares having a value equal to the exercise price of the portion of the warrants being exercised. In connection with arranging this financing with the Investor, the Company is obligated to pay Natixis Bleichroeder, LLC, $20,000. A copy of the Amendment and Waiver is available at: http://is.gd/BaoBmc About PLC Systems Milford, Massachusetts-based PLC Systems Inc. is a medical device company specializing in innovative technologies for the cardiac and vascular markets. The Company's key strategic growth initiative is its newest marketable product, RenalGuard(R). RenalGuard is designed to reduce the potentially toxic effects that contrast media can have on the kidneys when it is administered to patients during certain medical imaging procedures. Following the 2011 financial results, McGladrey & Pullen, LLP, in Boston, Massachusetts, expressed substantial doubt about PLC Systems' ability to continue as a going concern. The independent auditors noted that the Company has sustained recurring net losses and negative cash flows from continuing operations. The Company reported a net loss of $5.76 million for 2011, compared with a net loss of $505,000 for 2010. The Company's balance sheet at Sept. 30, 2012, showed $1.79 million in total assets, $16.85 million in total liabilities and a $15.06 million total stockholders' deficit. RAHA LAKES: Creditors Have Until Feb. 28 to File Proofs of Claim ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California established Feb. 28, 2013, as the deadline for any individual or entity to file proofs of claim against Raha Lakes and Mehr in Los Angeles. About Raha Lakes Raha Lakes Enterprises, LLC, filed a Chapter 11 petition (Bankr. C.D. Calif. Case No. 12-43422) on Oct. 3, 2012, in Los Angeles. Raha Lakes, a single-asset real estate company, estimated assets of at least $10 million and debt of at least $1 million. The company's principal asset is at 900 South San Pedro Street in Los Angeles. Raha Lakes estimated $10 million to $50 million in assets, and $1 million to $10 million in debts. The petition was signed by Kayhan Shakib, managing member. Mehr in Los Angeles Enterprises, LLC, filed a bare-bones Chapter 11 petition (Bankr. C.D. Calif. Case No. 12-43589) on Oct. 4, 2012, estimating assets of at least $10 million and liabilities of at least $1 million. The petition was signed by Yadollah Shakib, managing member. Judge Ernest M. Robles presides over the cases. The Debtors are represented by Michael S. Kogan, Esq., at Kogan Law Firm APC. John Choi, Esq., at Kim Park Choi, in Los Angeles, represents secured creditor San Pedro Investment, LLC, as counsel. RAINBOW LAND: To Present Plan for Confirmation on March 11 ---------------------------------------------------------- The U.S. Bankruptcy Court for the District of Nevada last month approved the disclosure statement explaining Rainbow Land & Cattle Company, LLC's Chapter 11 Plan of Reorganization. These deadlines were set by the Court: Plan Objection Deadline -- Feb. 22, 2013 Replies to Plan Objections -- March 1, 2013 Voting Deadline -- Feb. 22, 2013 Ballot Summary -- March 4, 2013. The hearing to consider confirmation of the Plan, as amended, will be held on March 11, 2013, at 9:30 a.m. The Debtor intends to sell or refinance its property prior to the expiration of a deferral period of three years. Postpetition and during the Deferral Period, interest, attorneys' fees and other charges will continue to accrue on the Zions Bank and Heise Loans. The Amended Plan designates four classes of claims. The Zions Bank allowed secured claim (Class 1) in the amount of $1,319,909 and the F. Heise Land & Livestock Company allowed secured claim (Class 2) of $809,092 will be paid in full in cash no later than the conclusion of the Deferral Period. Allowed unsecured claims (Class 3) will be paid on or before the conclusion of the Deferral Period. Holders of membership interests (Class 4) will retain their interests in the Reorganized Debtor, but will receive no distribution until Classes 1 through 3 are paid in full. A copy of the Amended Disclosures is available at: http://bankrupt.com/misc/rainbowland.doc93.pdf About Rainbow Land Rainbow Land & Cattle Company, LLC, is the owner of approximately 466 acres of undeveloped real property located in Caliente, Nevada, and approximately 133 acre feet of water appurtenant to the property. The Property was financed by Zions First National Bank at the time of the purchase. 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 approximately 579.48 undeveloped acres of real property located in Caliente, Nevada, along with 466.79 acre feet of water rights. The Debtor is owned by John Huston, 45.2381%; Jan J. Cole, 45.2381%; and Clarence Burr, 9.52381%. Judge Bruce A. Markell presides over the case. The Law Offices of Alan R. Smith serves as bankruptcy counsel. The petition was signed by John H. Huston, managing member. The Debtor's plan proposes to defer payments to Zions Bank, other secured creditors, and unsecured creditors for three years or earlier if a refinancing or sale of its property is obtained. Smith Larsen & Wixom represents Zions Bank as counsel. RICHARD W. HOYLE: U.S. Trustee Wins Chapter 7 Conversion -------------------------------------------------------- Bankruptcy Judge Terry L. Myers converted the Chapter 11 case of Richard W. Hoyle to a liquidation under Chapter 7 of the Bankruptcy Code; and rejected confirmation of Mr. Hoyle's Plan of Reorganization. The U.S. Trustee sought dismissal or, in the alternative, conversion of the case. The U.S. Trustee and the Idaho State Board of Land Commissioners acting by and through the Idaho Department of Lands, objected to confirmation of the Debtor's Third Amended Plan. The U.S. Trustee contends the Debtor failed to obey the Court's Feb. 16, 2012, order requiring the Debtor to amend his schedules, disclosure statement and plan. The U.S. Trustee also asserts the Debtor failed to timely and accurately satisfy all financial reporting requirements. A copy of the Court's Jan. 17, 2013 Memorandum of Decision is available at http://is.gd/yKcDLwfrom Leagle.com. Richard W. Hoyle, a real estate investor and developer with some 30 years of experience, filed a voluntary Chapter 11 petition (Bankr. D. Idaho Case No. 10-01484) on May 17, 2010. Although he is married, his wife did not join his petition or file her own. The Debtor's business, a sole proprietorship operated under the assumed business name Hoyle Investment, has focused on developing land and renovating properties to sell, with additional income from rentals of those properties. Most of his real estate properties are located in Valley County, Idaho, although he also owns property in Ada County, Idaho and Malheur County, Oregon. The Debtor has continued to market real estate and operate his rental properties as a debtor in possession. The Debtor is also the sole member of three limited liability companies: (1) Brundage Inn, LLC, (2) Villa Verona, LLC, and (3) Brundage, LLC. Brundage Inn, LLC, owns and operates a hotel in McCall, Idaho. He also previously owned and rented out cabins (the Brundage Bungalows) and leased out a restaurant building located on a parcel adjacent to the hotel until it sold the restaurant. Villa Verona, LLC, owns and has attempted to develop two riverfront parcels in Ada County. Brundage, LLC, consists of a property management company that is not currently operating. None of the three limited liability companies have filed bankruptcy. The Debtor has continued acting as the managing member of the Brundage Inn, LLC, and Villa Verona, LLC. RITZ CAMERA: In Chapter 7 Liquidation Effective Jan. 15 ------------------------------------------------------- The Hon. Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware converted the Chapter 11 cases of Ritz Camera & Image, L.L.C., et al., to those under Chapter 7 of the Bankruptcy Code. effective Jan. 15, 2013. As reported in the TCR on Dec. 27, 2012, the Debtors said that the going out of business sale concluded on Oct. 31, 2012, at which time the Debtors ceased all ongoing business operations other than those necessary and appropriate for the wind-up of their affairs and the pursuit efforts to liquidate the remaining assets of the Debtors' estates. The proceeds of the GOB sales and sales relating to certain of the Debtors' other assets have been used, among other things, to fund the Debtors' operations during the postpetition period and to pay down the obligations to the Debtors' secured lender, Crystal Financial LLC. The Debtors related that due to the illiquid nature of their remaining assets -- a warehouse located in Topeka, Kansas and certain substantial and complex litigation claims -- they have determined that the best interest of all creditors will be best served by converting the cases. The Debtors said the Chapter 7 trustee may complete the orderly liquidation of the remaining assets to maximize recoveries while reducing the continuing costs of the administration of the estates. About Ritz Camera Beltsville, Maryland-based Ritz Camera & Image LLC -- http://www.ritzcamera.com-- sold digital cameras and accessories, and electronic products. It sought Chapter 11 protection (Bankr. D. Del. Case No. 12-11868) on June 22, 2012, to close unprofitable stores. Ritz claims to be the largest camera and image chain the U.S., operating 265 camera stores in 34 states as well as an Internet business. When it filed for bankruptcy, Ritz Camera intended to shut 128 locations and cut its staff in half. Included in the closing are 10 locations in Maryland and 4 in Virginia. Affiliate Ritz Interactive Inc., owner e-commerce Web sites that include RitzCamera.com and BoatersWorld.com, also filed for bankruptcy. RCI's predecessor, Ritz Camera Centers, Inc., sought Chapter 11 protection (Bankr. D. Del. Case No. 09-10617) on Feb. 22, 2009. Ritz generated $40 million by selling all 129 Boater's World Marine Centers. A group that included the company's chief executive officer, David Ritz, formed Ritz Camera & Image to buy at least 163 of the remaining 375 camera stores. The group paid $16.25 million in cash and a $7.8 million note. Later, Ritz sold a $4 million account receivable for $1.5 million to an owner of the company that owed the debt. In the 2009 petition, Ritz disclosed total assets of $277 million and total debts of $172.1 million. Lawyers at Cole, Schotz, Meisel, Forman & Leonard, P.A., served as bankruptcy counsel. Thomas & Libowitz, P.A., served as the Debtor's special corporate counsel and conflicts counsel. Marc S. Seinsweig, at FTI Consulting, Inc., served as the Debtor's chief restructuring officer. Kurtzman Carson Consultants LLC acted as claims and noticing agent. Attorneys at Cooley Godward Kronish LLP and Bifferato LLC represented the official committee of unsecured creditors as counsel. In April 2010, the Court approved a liquidating Chapter 11 plan proposed by the company and the official creditor's committee. Under the Plan, unsecured creditors were to recover 4% to 14% of their claims. Ritz Camera disclosed $43,692,961 in assets and $49,147,316 in liabilities as of the Chapter 11 filing. The Debtors owe not less than $16.32 million for term and revolving loans provided by secured lenders led by Crystal Finance LLC, as administrative agent. Attorneys at Cole, Schotz, Meisel, Forman & Leonard, P.A., serve as bankruptcy counsel. Kurtzman Carson Consultants LLC is the claims agent. WeinsweigAdvisors LLC's Marc Weinsweig has been appointed as Ritz's CRO. Mark L. Desgrosseilliers, Esq., and Ericka F. Johnson, Esq., at Womble Carlyle Sandridge & Rice, LLP, represent liquidators Gordon Brothers Retail Partners LLC and Hilco Merchant Resources LLC. Crystal Finance, the DIP lender, is represented by Morgan, Lewis & Bockius and Young Conaway Stargatt & Taylor LLP. Roberta A. DeAngelis, U.S. Trustee for Region 3, pursuant to Section 1102(a)(1) of the Bankruptcy Code, appointed six persons to Official Committee of Unsecured Creditors. ROTECH HEALTHCARE: Amends Current Report to Add Documents --------------------------------------------------------- Rotech Healthcare Inc. previously filed an amendment to its current report on Form 8-K/A, amending its current report on Form 8-K originally filed on Dec. 21, 2012, to include Exhibit 10.1 to the Original Report. The Company filed a second amendment to the Original Report to include in the Exhibit certain ancillary documents in connection with a confidential treatment request that the Company is submitting with respect to certain matters in the Exhibit. No other changes have been made to the Original Report or the Form 8-K/A. On Dec. 21, 2012, the Company entered into a new term loan credit agreement with Silver Point Finance, LLC, as administrative agent thereunder and SPCP Group, LLC (an affiliate of Silver Point Finance, LLC), as initial lender thereunder relating to a term loan credit facility in an aggregate principal amount of $25 million. Pursuant to the Credit Agreement, the Company borrowed $23.5 million of the Facility on Dec. 21, 2012. The remaining $1.5 million portion of the Facility that is not borrowed at such time may be borrowed on or before Jan. 1, 2014, so long as certain limited conditions as set forth in the Credit Agreement are satisfied. The Facility replaces and repays commitments and loans under the Company's Credit Agreement, dated as of March 17, 2011, and, assuming the Company will borrow $1.5 million under the Delayed Draw Facility, increases available liquidity in the Company by approximately $15 million. In addition to repaying amounts outstanding under the 2011 Credit Agreement and fees and expenses associated with the Facility, the proceeds of the Facility should provide the Company with additional flexibility to address anticipated competitive changes and opportunities in the industry and working capital needs supporting the Company's business plans. The loans under the Facility will mature on April 30, 2015. The Credit Agreement does not require any amortization payments in respect of the loans and the entire principal amount is due at maturity. All borrowings under the Facility participate in a first priority security interest in substantially all of the Company's and the subsidiary guarantor's assets with the Company's $230 million in aggregate principal amount of 10.75% senior secured notes due Oct. 15, 2015. Amounts under the Facility bear interest at (i) the LIBOR Rate plus 10.0% per annum or, at the Company's option, (ii) a fluctuating rate plus 9.0% per annum. Interest is payable monthly. The default rate under the Facility is 3.0% per annum above the otherwise applicable interest rate. A "ticking" fee on the commitments in respect of the Delayed Draw Facility in an amount equal to 500 basis points per annum will begin accruing from March 31, 2013, to the Delayed Draw Termination Date and will be due and payable in cash on a monthly basis. To the extent the Company or any of its restricted subsidiaries obtain net cash proceeds from the incurrence of indebtedness not permitted to be incurred pursuant to the Credit Agreement, issuances of equity by the Company, asset sales or insurance/condemnation events, mandatory prepayments of the loans will be required, subject to exceptions set forth in the Credit Agreement. Those mandatory prepayments and any voluntary prepayments are subject to a premium of (i) 6.0% in the case of a prepayment made on or prior to Dec. 31, 2013, (or 4.5%, if such prepayment is made in connection with a change in control) and (ii) 3.0% in the case of a prepayment made on or after Jan. 1, 2014, through and including Dec. 31, 2014. Prepayments made on or after Jan. 1, 2015, are not subject to a premium. Any commitment reductions in respect of the Delayed Draw Facility after March 31, 2013, are subject to a premium of 6%. A copy of the Exhibit is available for free at: http://is.gd/t6GQ5K About Rotech Healthcare Based in Orlando, Florida, Rotech Healthcare Inc. (NASDAQ: ROHI) -- http://www.rotech.com/-- provides home medical equipment and related products and services in the United States, with a comprehensive offering of respiratory therapy and durable home medical equipment and related services. The company provides equipment and services in 48 states through approximately 500 operating centers located primarily in non-urban markets. The Company reported a net loss of $14.76 million in 2011, a net loss of $4.20 million in 2010, and a net loss of $21.08 million in 2009. The Company's balance sheet at Sept. 30, 2012, showed $255.76 million in total assets, $601.98 million in total liabilities and a $346.22 million total stockholders' deficiency. Bankruptcy Warning "In the event that we lack the ability to generate adequate cash to support our ongoing operations, we may need to access the financial markets by seeking additional debt or equity financing. As disclosed in our Risk Factors, there may be uncertainty surrounding our ability to access capital in the marketplace. The Company may be unable to secure the $15.0 million in additional financing permitted to it under the Indentures for our Senior Secured Notes and our Senior Second Lien Notes or to refinance its indebtedness on commercially reasonable terms, in which case it would need to identify alternative options to address its current and prospective credit situation, such as a sale of the Company or other strategic transaction, or a transformative transaction, such as a possible restructuring or reorganization of the Company's operations which could include filing for bankruptcy protection," the Company said in its quarterly report for the period ended Sept. 30, 2012. * * * As reported by the TCR on Aug. 21, 2012, Standard & Poor's Ratings Services lowered its rating on Orlando, Fla.-based Rotech Healthcare Inc. to 'CCC-' from 'B'. "The ratings reflect Rotech's highly leveraged financial risk profile, dominated by its weak liquidity position, high debt burden and overall sensitivity of credit metrics to the uncertain reimbursement environment," said Standard & Poor's credit analyst Tahira Wright. In the Aug. 30, 2012, edition of the TCR, Moody's Investors Service downgraded Rotech Healthcare, Inc.'s Corporate Family Rating to Caa3 from B3 and Probability of Default Rating to Caa3 from B2. This rating action is based on Moody's expectation that Rotech's liquidity and credit metrics -- which are already weak -- will deteriorate further over the next few quarters. Moody's expects continued top-line pressure from Medicare reimbursement cuts in 2013. SAVE MOST: Wins Approval to Use Cash Collateral ----------------------------------------------- The U.S. Bankruptcy Court for the Central District of California authorized Save Most Desert Rancho, Ltd. to use any and all alleged cash collateral collected postpetition. The Debtor owns multi-tenant office buildings located at 23272 Mill Creek Drive, Laguna Hills, California and 200 South Main St., Corona, California. The properties are managed by Foremost Business Parks, an entity which is associated with the Debtor. The Debtor, in its motion requested for authorization to make expenditures in amounts not to exceed 115% of the aggregate amounts contained in the budget to pay the reasonable and normal operating expenses of the properties. Any expenditure in excess of that amount will require the written approval of the holder of the first deeds of trust, namely JPMorgan Chase Bank, N.A., and San Diego County Credit Union, or further order of the Court after appropriate notice. As adequate protection from any diminution in value of the lenders' collateral, the Debtor will grant Chase and SDCCU replacement liens in the Debtor's postpetition rent collected from the properties, to the same extent, validity, and priority as any lien held by Chase and SDCCU as of the Petition Date. In this relation, on Nov. 28, 2012, the Debtor entered into a stipulation with SDCCU regarding the use of cash collateral until Jan. 31, 2013. As adequate protection for the Debtor's use of cash collateral well as the imposition of the automatic stay, the Debtor will grant the SDCCU replacement liens upon and security interests in all of Debtor's postpetition revenue collected from the property, to the same extent, validity, and priority as any lien held by Lender as of the Petition Date. Previously, secured creditor JPMorgan Chase, in its objection to the Debtor's motion, stated that, among other things: 1. the Debtor must be required to make monthly adequate protection payments to JPMorgan equal to the full monthly mortgage payment; 2. cash collateral must not be used to pay management fees of employee salaries; and 3. cash collateral must not be used to pay administrative and overhead expenses of the Debtor. JPMorgan also requested that the Court limit any authority to use JPMorgan's cash collateral to ordinary and necessary operating expenses of the property, minus the proposed management fee and employee salaries, and ensure that JPMorgan is adequately protected for the use. JPMorgan is holder of a claim secured by a first priority deed of trust on the subject property, including a 58 unit office building, located at 23272-72 Mill Creek Rd., Laguna Hills, California, owned by the Debtor, About Save Most Desert Rancho Save Most Desert Rancho, Ltd., filed a bare-bones Chapter 11 petition (Bankr. C.D. Calif. Case No. 12-23173) in Santa Ana, California on Nov. 15. The Laguna Hills-based company disclosed $10,134,997 in assets and $14,874,770 in liabilities as of the Chapter 11 filing. The petition was signed by Charles Kaminskas for Brighton Park, LP, general partner. Michael G. Spector, Esq., in Santa Ana, Calif., represents the Debtor as counsel. SENTINEL MANAGEMENT: Safe-Harbor Case Heads for Court of Appeals --------------------------------------------------------------- Reuters reported that INTL FCStone said on Jan. 18 it will appeal a federal court ruling ordering it to return $15.6 million to the trustee overseeing the bankruptcy of Sentinel Management Group. FCStone, a New York-based commodities brokerage with many farmers for clients, had to return the funds to the trustee because a distribution to former Sentinel clients was unfair, U.S. District Judge James Zagel ruled, Reuters recalled. Judge Zagel ordered FCStone to post an $8 million cash deposit with the U.S. Circuit Court for the Northern District of Illinois pending a judgment in the appeal, Reuters noted. Reuters related that Sentinel managed investments for clients, including FCStone, until it collapsed in 2007, when prosecutors say that executives moved customer money out of protected accounts to be used as collateral for loans to Sentinel's own trading operations. Two former Sentinel executives were charged in 2012 with defrauding customers out of more than $500 million before the futures brokerage failed, Reuters pointed out. Futures brokers are required to keep customers' funds in dedicated accounts to protect them from being used for anything other than client business, according to Reuters. FCStone received about 70 percent of the money it had invested with Sentinel, while other clients only got about 35 percent of their money, according to the trustee, Reuters said. If it loses the appeal, FCStone estimates its pre-tax loss at $4 million and $6 million, Reuters added. Since Sentinel failed, brokerages MF Global and Peregrine Financial Group went bankrupt in 2011 and 2012, respectively, after misusing customer money, Reuters noted. The bankruptcies have shaken confidence in the futures industry, Reuters said. Safe-Harbor Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the U.S. Court of Appeals in Chicago will be deciding whether the so-called safe harbor under Section 546(e) of the U.S. Bankruptcy Court is absolute or if there are loopholes. The outcome will determine the breadth of immunity from lawsuits given to traders in securities by the Bankruptcy Code. Mr. Rochelle notes that the lawsuit with FCStone was a test case to govern similar suits by the Sentinel trustee. The trustee contends that payments were fraudulent transfers before bankruptcy or unauthorized if they occurred after bankruptcy. In a 53-page opinion on Jan. 4, U.S. District Judge James B. Zagel found it "inconceivable that Congress intended for the safe harbor provisions to apply to the circumstances of this case." He said that allowing a failing broker to make an "eleventh hour" decision about who's paid "would fly in the face of justice and do nothing to advance any plausible Congressional purpose." The case is Grede v. FCStone LLC, 09-136, U.S. District Court, Northern District of Illinois (Chicago). About Sentinel Management Based in Northbrook, Illinois, Sentinel Management Group Inc. -- http://www.sentinelmgi.com/-- was a full service firm offering a variety of security solutions. The Company filed a voluntary Chapter 11 petition (Bankr. N.D. Ill. Case No. 07-14987) on Aug. 17, 2007. Ronald Barliant, Esq., Randall Klein, Esq., and Kathryn A. Pamenter, Esq., at Goldberg, Kohn, Bell & Black Rosenbloom & Moritz, Ltd., represented the Debtor. Lawyers at Quinn, Emanuel Urquhart Oliver & Hedges, LLP, represented the Official Committee of Unsecured Creditors. When the Debtor sought bankruptcy protection, it estimated assets and debts of more than $100 million. On Aug. 28, 2007, the Court approved Frederick Grede as the Debtor's Chapter 11 Trustee. Marc I. Fenton, Esq., at DLA Piper US LLP, and Vincent E. Lazar, Esq, at Jenner & Block LLP, represent the Chapter 11 Trustee. The Court confirmed the Fourth Amended Chapter 11 Plan of Liquidation for Sentinel on Dec. 15, 2008, which created a Liquidation Trust. The Plan became effective Dec. 17, 2008, and Mr. Grede was appointed Liquidation Trustee. SEQUENOM INC: Assumes Commercial Office Lease from eBioscience -------------------------------------------------------------- Sequenom, Inc., entered into an Assignment and Assumption of Lease and Novation with eBioscience, Inc., pursuant to which the Company acquired all of eBioscience's rights and obligations under that certain Office Lease dated April 27, 2009, between BMR-10240 Science Center Drive LLC, as landlord and successor-in-interest to TC Torrey Pines, LLC, and eBioscience, including the right to occupy approximately 49,347 square feet of commercial office and laboratory space located in San Diego, California. The initial term of the Lease will expire in July 2015. Pursuant to the terms of the Lease, the Company's basic rent will be $123,861 per month through June 30, 2013, $127,315 per month thereafter through June 30, 2014, and $129,783 per month for the remainder of the Lease. In addition, the Company has the option to extend the Lease for an additional five-year term, which would commence upon the expiration of the initial term. In the event the Company chooses to extend the term of the Lease, the minimum monthly rent payable for that additional term will be 95% of the then-prevailing market rate. Under the terms of the Lease, the Company is required to maintain certain levels of insurance and are required to indemnify the Landlord for losses incurred that are related to the Company's use or occupancy of the property. Pursuant to the Assumption Agreement, the Company also acquired rights to the prepaid rents and security deposit held by the Landlord, which those amounts will be reimbursed by the Company. About Sequenom Sequenom, Inc. (NASDAQ: SQNM) -- http://www.sequenom.com/-- is a life sciences company committed to improving healthcare through revolutionary genetic analysis solutions. Sequenom develops innovative technology, products and diagnostic tests that target and serve discovery and clinical research, and molecular diagnostics markets. The company was founded in 1994 and is headquartered in San Diego, California. The Company reported a net loss of $74.15 million in 2011, a net loss of $120.84 million in 2010, and a net loss of $71.01 million in 2009. The Company's balance sheet at Sept. 30, 2012, showed $264.18 million in total assets, $188.60 million in total liabilities and $75.58 million in total stockholders' equity. SHAMROCK-HOSTMARK: Cash Collateral Use Hearing Tomorrow ------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois has continued the hearing on Shamrock-Hostmark Princeton Hotel, LLC's continued use of cash collateral to Jan. 24, 2013, at 10:30 a.m. The Debtor owns the DoubleTree by Hilton Hotel Princeton hotel located in Princeton, New Jersey. General Electric Capital Corporation has a lien on substantially all of the Debtor's assets, including all cash generated by the Hotel's operation. The Bankruptcy Court previously issued interim orders authorizing the Debtor's use of cash collateral. About Shamrock-Hostmark Schaumburg, Ill.-based Shamrock-Hostmark Princeton Hotel, LLC, filed for Chapter 11 protection (Bank. N.D. Ill. Case No. 12-25860) on June 27, 2012. William Gingrich signed the petition as vice president-CFO, of Hostmark Hospitality Group. Shamrock- Hostmark Princeton Hotel disclosed $522,413 in assets and $15,457,812 in liabilities as of the Chapter 11 filing. Judge Jacqueline P. Cox presides over the case. Shamrock-Hostmark Andover and four affiliates are units of investment fund Shamrock-Hostmark Hotel Fund that own hotels. Shamrock-Hostmark Princeton owns the DoubleTree by Hilton Hotel Princeton located in Princeton, New Jersey. Shamrock-Hostmark Texas owns Crowne Plaza Hotel in San Antonio, TX. Shamrock- Hostmark Palm owns Embassy Suites Palm Desert in Palm Desert, CA. Shamrock-Hostmark Andover owns the Wyndham Boston Andover in Andover, MA. Shamrock-Hostmark Tampa owns the DoubleTree by Hilton Hotel Tampa Airport - Westshore in Tampa, FL. The Debtors are represented by David M. Neff, Esq., at Perkins Coie LLP, in Chicago, Illinois. STABLEWOOD SPRINGS: SRS to Charge $20,000 Per Month for CRO Role ---------------------------------------------------------------- Stablewood Springs Resort, LP, and affiliate Stablewood Springs Resort Operations, LLC, asked the Bankruptcy Court for approval to hire the firm of SRS Ventures LLC as financial consultant and the firm's Scott R. Sanders as chief restructuring officer. The CRO may be reached at: Scott R. Sanders SRS VENTURES, LLC 3004 Philfall St. Houston, TX 77098 Tel: 713-521-1818 E-mail: srs@sevanllc.com. SRS has served as financial advisor for the Debtors since Oct. 7, 2008. The Debtors have determined that it is in the best interest of their estates and creditors to continue the professional services of SRS postpetition. The duties to be completed by SRS include assisting the Debtors with cash management and cash flow reporting process, managing the Debtors' purchasing process and plan, and managing the Debtors' efforts to obtain DIP financing. Mr. Sanders will be the only employee of SRS who will provide services to the Debtors in connection with their Chapter 11 cases. He will be compensated $20,000 per calendar month and will receive an incentive equal to $50,000 upon confirmation of a plan of reorganization. Mr. Sanders graduated with honors from The University of Arizona and has 14 yeas of business experience, including 6 years as director for Alvarez & Marsal. Creditors J.A. Van Hessen and Axys Capital Total Return Fund, LLC have filed objections to the application. About Stablewood Springs Resort Stablewood Springs Resort, LP, owner of a high-end resort destination encompassing 140 acres of a 543-acre private ranch in the Texas hill country near Hunt, filed a bare-bones Chapter 11 petition (Bankr. W.D. Tex. Case No. 12-53887) in San Antonio on Dec. 17, 2012. The Debtor disclosed assets of $11.15 million and liabilities of $22.8 million as of Nov. 30, 2012. Liabilities include $10.4 million in secured debt and $9.3 million of disputed secured debt. STABLEWOOD SPRINGS: Wins Interim Approval for Cash Use ------------------------------------------------------ Bankruptcy Judge Ronald B. King signed at the end of December and mid-January agreed interim orders authorizing Stablewood Springs Resort, LP, and affiliate Stablewood Springs Resort Operations, LLC to incur postpetition senior secured superpriority indebtedness and use cash collateral. The Debtor has arranged DIP financing from Alliance Prime Associates in the amount of $850,000. The DIP lender agreed to provide $95,000 in funding under the first interim order and an additional $40,000 pursuant to the second interim order. The Debtor intends to grant the DIP lender first priority liens and security interests and superpriortiy claims. The Debtors' secured lenders, Axys Capital Total Return Fund, LLC and Paul J.A. "Lex" van Hessen have agreed to allow the Debtors to use cash collateral on the interim. The parties agreed that the Debtors won't be permitted to sell any fractional interests in their villas or the Private Residence Club without the prior consent of Axys and van Hessen. The first interim order was signed following a hearing on Dec. 21 while the second order was signed following the Jan. 11 hearing. A final hearing on the DIP financing will be held on Jan. 25, 2013 at 10:00 a.m. Objections were due Jan. 22. About Stablewood Springs Resort Stablewood Springs Resort, LP, owner of a high-end resort destination encompassing 140 acres of a 543-acre private ranch in the Texas hill country near Hunt, filed a bare-bones Chapter 11 petition (Bankr. W.D. Tex. Case No. 12-53887) in San Antonio on Dec. 17, 2012. The Debtor disclosed assets of $11.15 million and liabilities of $22.8 million as of Nov. 30, 2012. Liabilities include $10.4 million in secured debt and $9.3 million of disputed secured debt. STABLEWOOD SPRINGS: Sec. 341(a) Meeting Continued to Jan. 24 ------------------------------------------------------------ There's a meeting of creditors in the Chapter 11 cases of Stablewood Springs Resort, LP, and affiliate Stablewood Springs Resort Operations, LLC, on Jan. 24, 2013, at 3:00 p.m. The meeting was originally slated for Jan. 14, 2013. Proofs of claim are due April 15, 2013, according to the notice of the meeting. The meeting, which is required under Section 341(a) of the Bankruptcy Code, offers creditors a one-time opportunity to examine a bankrupt company's representative under oath about its financial affairs and operations that would be of interest to the general body of creditors. About Stablewood Springs Resort Stablewood Springs Resort, LP, owner of a high-end resort destination encompassing 140 acres of a 543-acre private ranch in the Texas hill country near Hunt, filed a bare-bones Chapter 11 petition (Bankr. W.D. Tex. Case No. 12-53887) in San Antonio on Dec. 17, 2012. The Debtor disclosed assets of $11.15 million and liabilities of $22.8 million as of Nov. 30, 2012. Liabilities include $10.4 million in secured debt and $9.3 million of disputed secured debt. STAGE PRESENCE: Court Rules in Breach of Contract Suit ------------------------------------------------------ STAGE PRESENCE, INC., Plaintiff, v. GENEVE INTERNATIONAL TRUST, RONALD L. BARTHOLOMEW, and STEPHEN MENNER, Defendants, Adv. Proc. No. 12-01561 (Bankr. S.D.N.Y.), involves the defendants' alleged failure to fund a television production undertaken by the plaintiff. Stage Presence, Inc., filed an initial complaint against the Defendants on April 16, 2012, claiming breach of contract and fraud and seeking to recover $2,204,145. The Defendants moved to dismiss the complaint for failure to state a claim and lack of personal jurisdiction over Geneve. The Court held in an oral decision on Aug. 6, 2012, that (i) the complaint failed to adequately plead either a contract or fraud claim and (ii) the record did not contain sufficient evidence to allow the Court to decide whether there was personal jurisdiction over the Defendants; but (iii) the Plaintiff would have leave to amend. On Sept. 20, 2012, Stage Presence filed an Amended Complaint which appended a three-page contract entitled "Television Production Loan Agreement". The Defendants move to dismiss the Amended Complaint on these grounds: (1) there is no personal jurisdiction over Geneve; (2) the Amended Complaint does not adequately plead a contract claim; (3) the fraud claim is not pled with particularity as required by Fed.R.Bankr.P. 7009, incorporating F. R. Civ. P. 9(b); and (4) if the contract relied on by the Plaintiff is enforceable and sufficiently pled, it contains a "mandatory" arbitration clause. The Court held a hearing on the motion to dismiss on Dec. 14. In last week's decision, Bankruptcy Judge Allan L. Gropper granted the motion to dismiss is granted only to the extent of dismissing the Amended Complaint against Menner. The motion to dismiss the contract claim against Geneve is denied, as is the motion to dismiss the fraud claims against Bartholomew. The Court said Geneve may move to refer the contract claim against it to arbitration. A copy of the Court's Jan. 17, 2013 Memorandum of Opinion and Order is available at The Law Office of David Wims in Brooklyn, NY, represents Stage Presence, Inc., in the lawsuit. Edward E. Neiger, Esq., and Dina Gielchinsky, Esq., at ASK LLP, represent Geneve International Trust, Ronald L. Bartholomew, and Stephen Menner. Stage Presence Inc. filed a Chapter 11 bankruptcy petition (Bankr. S.D.N.Y. Case No. 12-10525) on Feb. 9, 2012. The bankruptcy filing was necessitated by Stage Presence's inability to pay production and labor costs, as well as travel and legal expenses incurred in connection with a TV production called "An Evening of Grace: A Concert for the Children", which was filmed in Washington, D.C. in April 2010 and aired on the TV channel BET/Centric in May 2010. Judge Allan L. Gropper oversees the case. According to the petition, Joel M. Shafferman, Esq., at Shafferman & Feldman, LLP, serves as the Debtor's counsel. The Debtor scheduled $2,309,486 in assets and $1,373,349 in liabilities. A list of the Company's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/nysb12-10525.pdf The petition was signed by Allen Newman, president. STAMP FARMS: Can Access Up to $1.8-Mil. of WF Cash Collateral ------------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Michigan in mid-December entered an order authorizing Stamp Farms, L.L.C., et al., on an interim basis, to use cash collateral of Wells Fargo Bank, National Association, not to exceed $1,803,229 in the aggregate. As adequate protection, Wells Fargo is granted a security interest in and lien on all present and future property of the Estates, with the exception of the avoidance and other causes of action arising under or preserved pursuant to Chapter 5 of the Code and the related proceeds. Wells Fargo is also granted a superpriority claim under 11 U.S.C. Section 507(b), subject only the Carve-Out for United States Trustee Fees and Professional Fees. In connection with this second interim order authorizing access to cash, the Debtors stipulate and agree that Wells Fargo is the holder of a claim as of the Petition Date against the Debtors in the approximate sum of $63.4 million consisting of borrowings of $60.8 million, accrued interest of $245,000, obligations relating to ISDA swap confirmations of $2.32 million, obligations relating to corporate credit cards of $8,600, plus all other costs, fees and obligations owing. According to papers filed with the Court on Dec. 4, 2012, the Debtors need to use cash collateral to pay for the costs of winding up their 2012 farming operations, collecting and maintaining the security of their farm equipment and stored grain, including the costs of employees and consultants to perform such functions and to pursue potential sales of the Debtors' assets and business operations and other efforts to liquidate the assets of the Debtors in an orderly manner to maximize value for creditors. The Debtors also sought authorization to obtain DIP financing which Wells Fargo has agreed to provide to the extent the Debtors do not have adequate Cash Collateral to pay expenditures as contemplated by the Budget. Advances under the DIP Financing Facility will be secured by a lien on all assets of the Debtors' estates. Wells Fargo will be entitled to a superpriority administrative expense claim under Section 507(b) of the Bankruptcy Code for all such advances. Daniel M. McDermott, United States Trustee for Region 9, objected to the Debtor's motion, citing, among other things: 1. No schedules or statement of financial affairs have been filed. 2. There are four distinct bankruptcy cases with four distinct bankruptcy estates. 3. The motion includes one budget, rather than a budget for each Debtor. It is therefore impossible to tell which Debtor requires what funds for what purposes. 4. There is no breakdown in the budget or motion to indicate how much cash collateral each Debtor has on hand. This again makes it impossible to determine the need for use of cash collateral or for post-petition financing. About Stamp Farms Stamp Farms, L.L.C., and three affiliates sought Chapter 11 protection (Bankr. W.D. Mich. Lead Case No. 12-10410) on Nov. 30, 2012, in Grand Rapids, Michigan. Stamp Farms began in 1968 with its purchase of 168 acres of farmland in Decatur, Michigan. The family was also heavily involved in the swine industry, operating a 500 sow swine operation until 1995. In 1997, Mike Stamp took over operations of Stamp Farms' 1500 acres and has grown the farm operation to cover 20,000+ acres across six southwestern Michigan counties. Debtor Stamp Farms sells its grain to Northstar Grain, L.L.C., solely owned by Mike Stamp, which conducts a grain elevator business on land it owns and leases and upon which buildings, grain storage bins, grain loading and related equipment and rail spurs are located. Stamp Farms estimated at least $10 million in assets and at least $50 million in liabilities in its bare-bones petition. Mr. Stamp also filed a Chapter 11 petition (Case No. 12-10430). Judge Scott W. Dales oversees the case. The Debtor has hired the law firm of Varnum LLP as counsel. STAR BUFFET: Exits Chapter 11 Bankruptcy Protection --------------------------------------------------- Star Buffet, Inc. on Jan. 22 disclosed that it has exited from Chapter 11 bankruptcy protection effective Jan. 17, 2013. The United States Bankruptcy Court for the District of Arizona on Dec. 17, 2012, entered an order confirming the Second Amended Joint Plan of Reorganization. In accordance with the court order, the Plan became effective and the Company formally exited the bankruptcy proceedings. About Star Buffet Star Buffet, Inc. is a multi-concept restaurant operator. As of January 22, 2013, Star Buffet, Inc. through its subsidiaries, operated seven 4B's restaurants, five JB's restaurants, three K- BOB'S Steakhouses, three Barnhill's Buffet restaurants, two Western Sizzlin restaurants, two JJ North's Country Buffet restaurants, two Pecos Diamond Steakhouses, one Casa Bonita Mexican theme restaurant, one BuddyFreddys restaurant and one Bar- H Steakhouse. Based in Arizona, Star Buffet, Inc. filed for Chapter 11 protection (Bankr. D. Ariz. Case No. 11-27518) on Sept. 28, 2011. Judge George B. Nielsen Jr. presides over the case. S. Cary Forrester, Esq., at Forrester & Worth, PLLC, represents the Debtor. The Debtor estimated both assets and debts of between $1 million and $10 million. Summit Family Restaurants Inc. filed a voluntary petition for reorganization under Chapter 11 on Sept. 29, 2011. The cases are being jointly administered. None of the Company's other subsidiaries were included in the bankruptcy filing. STR HOLDINGS: Loses Key Customer; Reviews Strategic Alternatives ---------------------------------------------------------------- STR Holdings, Inc. believes that First Solar, Inc., a long- standing customer, will terminate its relationship with the Company in 2013. Though the exact timing remains uncertain, the Company expects that First Solar will begin a transition away from STR in the first quarter of 2013, completely cutting over to a new supplier during the course of the next few months. As previously disclosed, First Solar is STR's largest customer and such loss is likely to have a material adverse effect on the business and financial results of the Company. Sales to First Solar during 2012 were approximately $39 million. Robert S. Yorgensen, President & Chief Executive Officer commented, "We have enjoyed a very long and prosperous relationship with First Solar. Their loyalty over the years is a testament to our value as a reliable supplier of excellent quality products and service, for which First Solar honored us with their Top Supplier Award just over a year ago." Mr. Yorgensen continued, "We have had no claim for defective product from First Solar, nor have we had any returns, and the product we have been supplying for years has been according to specification. Unfortunately, I cannot elaborate on their decision to work with another supplier at this time. On a more positive note, we have recently added three new customers in China, two of which have qualified and ordered our next-generation encapsulants. While this new work won't make up for the loss of First Solar's business in the short- term, we believe it represents very important progress toward increasing our share of the burgeoning Chinese market." The Company will continue its comprehensive review of its cost structure, and expects to cease manufacturing operations at its East Windsor, Connecticut facility by the end of the first quarter of 2013, and make significant headcount reductions throughout the organization. The Company is assessing its long-lived assets for impairment and expects to incur significant restructuring charges in 2013. The Company will communicate its restructuring plan in more detail at a later date. The Company plans to service its North American customer base from its production facilities in Spain and Malaysia. Joseph C. Radziewicz, Vice President & Chief Financial Officer, said, "While the loss of First Solar as a customer is certainly an unfortunate development for STR, we have already taken swift action to reduce our costs, which will help to preserve our strong balance sheet as well as our options going forward." Separately and unrelated to the loss of First Solar as a customer, the Company engaged UBS Investment Bank as its financial advisor in December 2012 to assist the Board of Directors with a review of the Company's strategic alternatives. As of December 31, 2012, the Company had $81.9 million of cash and no debt. About STR Holdings, Inc. STR Holdings, Inc. -- http://www.strholdings.com-- is a global provider of high quality solar encapsulants to the photovoltaic module industry. THERMOENERGY CORP: Amends 63.8MM Shares Resale Prospectus --------------------------------------------------------- ThermoEnergy Corporation filed with the U.S. Securities and Exchange Commission amendment no.2 to the Form S-1 registration statement relating to the resale of up to 63,856,250 shares of Common Stock, par value $0.001 per share, of the Company that may be sold from time to time by George M. Abraham, Cary G. Bullock, Dawson James Securities, Inc., et al. The Company will not receive any proceeds from the sale of the Common Stock by the selling stockholders. The selling stockholders may, from time to time, sell, transfer or otherwise dispose of any or all of their shares of Common Stock or interests in shares of Common Stock on any market or trading facility on which the Company's shares are traded or in private transactions. These dispositions may be at fixed prices, at prevailing market prices at the time of sale, at prices related to the prevailing market price, at varying prices determined at the time of sale, or at negotiated prices. No underwriter or other person has been engaged to facilitate the sale of shares of the Company's Common Stock in this offering. The Company is paying the cost of registering the shares covered by this prospectus as well as various related expenses. The selling stockholders are responsible for all discounts, selling commission and other costs related to the offer and sale of their shares. The Company's Common Stock is currently traded on the Over-the- Counter Bulletin Board under the symbol "TMEN.OB." On Jan. 11, 2013, the last reported sale price of the Company's Common Stock on the OTCBB was $0.07 per share. A copy of the amended prospectus is available at: http://is.gd/5SPTys About ThermoEnergy Corporation Little Rock, Ark.-based ThermoEnergy Corporation is a clean technologies company engaged in the worldwide development of advanced municipal and industrial wastewater treatment systems and carbon reducing clean energy technologies. After auditing the 2011 results, Grant Thornton LLP, in Boston, Massachusetts, 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 for the year ended Dec. 31, 2011, and, as of that date, the Company's current liabilities exceeded its current assets by $3,387,000 and its total liabilities exceeded its total assets by $4,603,000. The Company reported a net loss of $17.38 million in 2011, compared with a net loss of $14.85 million during the prior year. The Company's balance sheet at Sept. 30, 2012, showed $3.85 million in total assets, $13.06 million in total liabilities, and a $9.21 million total stockholders' deficiency. VIVARO CORP: Creditors Have Until Feb. 1 to File Proofs of Claim ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York established Feb. 1, 2013, as the deadline for any individual or entity to file proofs of claim against Vivaro Corp. The Feb. 1 deadline excludes governmental units. Governmental units have until March 3, 2013, at 5 p.m. to file their claims. About Vivaro Corp. Vivaro Corp., which specializes in the sale of international calling cards in the U.S., filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-13810) on Sept. 5, 2012, together with six other related companies, including Kare Distribution Inc. The Debtor is represented by Frederick E. Schmidt, Esq., at Hanh V. Huynh, Esq., at Herrick, Feinstein LLP. Garden City Group Inc. is the claims and notice agent. The Debtor will put its assets on the auction block next month. Tracy Hope Davis, the U.S. Trustee for Region 2, appointed five members to the official committee of unsecured creditors. VIVARO CORP: Section 341(a) Meeting Now Set for Jan. 28 ------------------------------------------------------- The U.S. Trustee for Region 2, in an amended notice, will convene a meeting of creditors on Jan. 28, 2013, in the Chapter 11 case of Vivaro Corporation. Creditors are advised to check with the U.S. Trustee for location. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. About Vivaro Corp. Vivaro Corp., which specializes in the sale of international calling cards in the U.S., filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-13810) on Sept. 5, 2012, together with six other related companies, including Kare Distribution Inc. The Debtor is represented by Frederick E. Schmidt, Esq., at Hanh V. Huynh, Esq., at Herrick, Feinstein LLP. Garden City Group Inc. is the claims and notice agent. The Debtor will put its assets on the auction block next month. Tracy Hope Davis, the U.S. Trustee for Region 2, appointed five members to the official committee of unsecured creditors. W.R. GRACE: R. Ted Weschler Discloses 4.97% Stake ------------------------------------------------- In an amended Schedule 13D filed with the U.S. Securities and Exchange Commission on December 21, 2012, R. Ted Weschler, managing member of Peninsula Capital Advisors LLC, disclosed that he beneficially owns 4.97% of the shares of common stock of W.R. Grace & Co. According to the filing, there were 75,313,364 shares of common stock issued and outstanding as of October 31, 2012. Based on such information, Mr. Weschler reports beneficial ownership of 3,740,902 shares of common stock, representing 4.97% of the common stock outstanding. Mr. Weschler has the sole power to vote or direct the vote of 3,740,902 shares of common stock; has the shared power to vote or direct the vote of 0 shares of common stock; has sole power to dispose or direct the disposition of 3,740,902 shares of common stock; and has shared power to dispose or direct the disposition of 0 shares of common stock. There were no transactions in the common stock Mr. Weschler during the 60 days prior to December 21, 2012, according to the filing. Mr. Weschler has ceased to be the beneficial owner of greater than 5% of the outstanding shares of common stock as a result of an increase in the outstanding number of shares of common stock, the filing said. About W.R. Grace Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally. The company and its debtor-affiliates filed for chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. W.R. Grace obtained confirmation of a plan co-proposed with the Official Committee of Asbestos Personal Injury Claimants, the Official Committee of Equity Security Holders, and the Asbestos Future Claimants Representative. The Chapter 11 plan is built around an April 2008 settlement for all present and future asbestos personal injury claims, and a subsequent settlement for asbestos property damage claims. Implementation of the Plan has been held up by appeals in District Court from various parties, including a group of prepetition bank lenders and the Official Committee of Unsecured Creditors. District Judge Ronald Buckwalter on Jan. 31, 2012, entered an order affirming the bankruptcy court's confirmation of W.R. Grace & Co. and its debtor affiliates' Plan of Reorganization. Bankruptcy Judge Judith Fitzgerald had approved the Plan on Jan. 31, 2011. On April 20, 2012, the company filed a motion with the Bankruptcy Court to approve definitive agreements among itself, co-proponents of the Plan, BNSF railroad, several insurance companies and the representatives of Libby asbestos personal injury claimants, to settle objections to the Plan. Pursuant to the agreements, the Libby claimants and BNSF would forego any further appeals to the Plan. Bankruptcy Creditors' Service, Inc., publishes W.R. Grace Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) W.R. GRACE: Sealed Air Continues to Monitor Grace Bankruptcy ------------------------------------------------------------ On March 31, 1998, Sealed Air Corporation completed a multi-step transaction involving W. R. Grace & Co. which brought the Cryovac packaging business and the former Sealed Air Corporation's business under the common ownership of the Company. As part of that transaction, Grace and its subsidiaries retained all liabilities arising out of their operations before the Cryovac transaction (including asbestos-related liabilities), other than liabilities relating to Cryovac's operations, and agreed to indemnify the Company with respect to such retained liabilities. Since 2000, the Company has been served with a number of lawsuits alleging that, as a result of the Cryovac transaction, the Company is responsible for the alleged asbestos liabilities of Grace and its subsidiaries. While they vary, these suits all appear to allege that the transfer of the Cryovac business was a fraudulent transfer or gave rise to successor liability. On April 2, 2001, Grace and certain of its subsidiaries filed for Chapter 11 relief in the U.S. Bankruptcy Court for the District of Delaware. In connection with Grace's Chapter 11 case, the Bankruptcy Court issued orders dated May 3, 2001 and January 22, 2002, staying all asbestos actions against the Company. However, the official committees appointed to represent asbestos claimants in Grace's Chapter 11 case (the "Committees") received the court's permission to pursue fraudulent transfer and other claims against the Company and its subsidiary Cryovac, Inc. based upon the Cryovac transaction. This proceeding was brought in the U.S. District Court for the District of Delaware (the "District Court") (Adv. No. 02-02210). Sealed Air states: "On November 27, 2002, we reached an agreement in principle with the Committees to resolve the fraudulent transfer proceeding and all current and future asbestos-related claims made against us and our affiliates in connection with the Cryovac transaction. The Settlement agreement will also resolve the fraudulent transfer claims and successor liability claims, as well as indemnification claims by Fresenius Medical Care Holdings, Inc. and affiliated companies in connection with the Cryovac transaction. The parties to the agreement in principle signed the definitive Settlement agreement as of November 10, 2003 consistent with the terms of the agreement in principle. On June 27, 2005, the Bankruptcy Court signed an order approving the definitive Settlement agreement. Although Grace is not a party to the Settlement agreement, under the terms of the order, Grace is directed to comply with the Settlement agreement subject to limited exceptions. On September 19, 2008, Grace, the Official Committee of Asbestos Personal Injury Claimants, the Asbestos PI Future Claimants' Representative, and the Official Committee of Equity Security Holders (the "Equity Committee") filed, as co- proponents, a plan of reorganization (as filed and amended from time to time, the "PI Settlement Plan") and several exhibits and associated documents, including a disclosure statement (as filed and amended from time to time, the "PI Settlement Disclosure Statement"), with the Bankruptcy Court. As filed, the PI Settlement Plan would provide for the establishment of two asbestos trusts under Section 524(g) of the United States Bankruptcy Code to which present and future asbestos-related claims would be channeled. The PI Settlement Plan also contemplates that the terms of our definitive Settlement agreement will be incorporated into the PI Settlement Plan and that we will pay the amount contemplated by that agreement. On January 31, 2011, the Bankruptcy Court entered a memorandum opinion (the "Bankruptcy Court Opinion") overruling certain objections to the PI Settlement Plan. On the same date, the Bankruptcy Court entered an order regarding confirmation of the PI Settlement Plan (the "Bankruptcy Court Confirmation Order"). As entered on January 31, 2011, the Bankruptcy Court Confirmation Order contained recommended findings of fact and conclusions of law, and recommended that the District Court approve the Confirmation Order, and that the District Court confirm the PI Settlement Plan and issue a channeling injunction under Section 524(g) of the Bankruptcy Code. Thereafter, on February 15, 2011, the Bankruptcy Court issued an order clarifying the Bankruptcy Court Opinion and the Bankruptcy Court Confirmation Order (the "Clarifying Order"). Among other things, the Clarifying Order provided that any references in the Bankruptcy Court Opinion and the Bankruptcy Court Confirmation Order to a recommendation that the District Court confirm the PI Settlement Plan were thereby amended to make clear that the PI Settlement Plan was confirmed and that the Bankruptcy Court was requesting that the District Court issue and affirm the Confirmation Order including the injunction under Section 524(g) of the Bankruptcy Code. On March 11, 2011, the Bankruptcy Court entered an order granting in part and denying in part a motion to reconsider the Bankruptcy Court Opinion filed by BNSF Railway Company (the "March 11 Order"). Among other things, the March 11 Order amended the Bankruptcy Court Opinion to clarify certain matters relating to objections to the PI Settlement Plan filed by BNSF. "Various parties appealed or otherwise challenged the Bankruptcy Court Opinion and the Bankruptcy Court Confirmation Order, including without limitation with respect to issues relating to releases and injunctions contained in the PI Settlement Plan. "On January 30, 2012, the District Court issued a memorandum opinion (the "Original District Court Opinion") and confirmation order (the "Original District Court Confirmation Order") overruling all objections to the PI Settlement Plan and confirming the PI Settlement Plan in its entirety (including the issuance of the injunction under Section 524(g) of the Bankruptcy Code). On February 3, 2012, Garlock Sealing Technologies LLC ("Garlock") filed a motion (the "Garlock Reargument Motion") with the District Court requesting that the District Court grant reargument, rehearing, or otherwise amend the Original District Court Opinion and the Original District Court Confirmation Order insofar as they overruled Garlock's objections to the PI Settlement Plan. On February 13, 2012, the Company, Cryovac, and Fresenius Medical Care Holdings, Inc. filed a joint motion (the "Sealed Air/Fresenius Motion") with the District Court. The Sealed Air/Fresenius Motion did not seek to disturb confirmation of the PI Settlement Plan but requested that the District Court amend and clarify certain matters in the Original District Court Opinion and the Original District Court Confirmation Order. Also on February 13, 2012, Grace and the other proponents of the PI Settlement Plan filed a motion (the "Plan Proponents' Motion") with the District Court requesting certain of the same amendments and clarifications sought by the Sealed Air/Fresenius Motion. On February 27, 2012, certain asbestos claimants known as the "Libby Claimants" filed a response to the Sealed Air/Fresenius Motion and the Plan Proponents' Motion (the "Libby Response"). The Libby Response did not oppose the Sealed Air/Fresenius Motion or the Plan Proponents' Motion but indicated, among other things, that: (a) the Libby Claimants had reached a settlement in principle of their objections to the PI Settlement Plan but that this settlement had not become effective and (b) the Libby Claimants reserved their rights with respect to the PI Settlement Plan pending the effectiveness of the Libby Claimants' settlement. On April 20, 2012, as part of a more global settlement, Grace filed a motion with the Bankruptcy Court seeking, among other things, approval of settlements with the Libby Claimants and BNSF. The settlements with the Libby Claimants and BNSF were approved by order of the Bankruptcy Court dated June 6, 2012. Thereafter, the appeals of the Libby Claimants and BNSF with respect to the PI Settlement Plan were dismissed by orders of the United States Court of Appeals for the Third Circuit (the "Third Circuit Court of Appeals") dated September 24, 2012 and October 4, 2012. The District Court held a hearing on May 8, 2012, to consider the Garlock Reargument Motion. On May 29, 2012, Anderson Memorial Hospital ("Anderson Memorial") filed a motion seeking relief from, and reconsideration of, the Original District Court Opinion and the Original District Court Confirmation Order (the "Anderson Relief Motion"). In the Anderson Relief Motion, Anderson Memorial argued that a May 18, 2012, decision by the Third Circuit Court of Appeals in a case called Wright v. Owens-Corning undermined the District Court's conclusion that (a) the PI Settlement Plan was feasible and (b) the asbestos property damage injunction and trust included in the PI Settlement Plan were appropriate. Objections to the Anderson Relief Motion were filed by Grace and the other proponents of the PI Settlement Plan, and by the representative of future asbestos property damage claimants appointed in the Grace bankruptcy proceedings. On June 11, 2012, the District Court entered a consolidated order granting the Sealed Air/Fresenius Motion, the Plan Proponents' Motion, and the Garlock Reargument Motion, and providing for amendments to the Original District Court Opinion and the Original District Court Confirmation Order. Although the Consolidated Order granted the Garlock Reargument Motion, it did not constitute the District Court's agreement with Garlock's objections to the PI Settlement Plan, which the District Court continued to overrule. Also on June 11, 2012, the District Court entered an amended memorandum opinion and confirmation order overruling all objections to the PI Settlement Plan, reflecting amendments described in the Consolidated Order, and confirming the PI Settlement Plan in its entirety (including the issuance of the injunction under Section 524(g) of the Bankruptcy Code). Thereafter, on July 23, 2012, the District Court issued a memorandum opinion and an order denying the Anderson Relief Motion. Parties have appealed the Amended District Court Opinion and the Amended District Court Confirmation Order to the Third Circuit Court of Appeals. "If it becomes effective, the PI Settlement Plan may implement the terms of the Settlement agreement, but there can be no assurance that this will be the case notwithstanding the confirmation of the PI Settlement Plan by the Bankruptcy Court and the District Court. The terms of the PI Settlement Plan remain subject to amendment. Moreover, the PI Settlement Plan is subject to the satisfaction of a number of conditions which are more fully set forth in the PI Settlement Plan and include, without limitation, the availability of exit financing and the approval of the PI Settlement Plan becoming final and no longer subject to appeal. Parties have appealed the Amended District Court Confirmation Order to the Third Circuit Court of Appeals or otherwise challenged the Amended District Court Opinion and the Amended District Court Confirmation Order. Matters relating to the PI Settlement Plan, the Bankruptcy and Amended District Court Opinions, and the Bankruptcy and Amended District Court Confirmation Orders may be subject to further appeal, challenge, and proceedings before the District Court, the Third Circuit Court of Appeals, or other courts. Parties have designated various issues to be considered in challenging the PI Settlement Plan, the Bankruptcy and Amended District Court Opinions, or the Bankruptcy and Amended District Court Confirmation Orders, including, without limitation, issues relating to releases and injunctions contained in the PI Settlement Plan. "Although Grace publicly indicated its intent to seek to emerge from bankruptcy before the appeals are fully and finally resolved, it subsequently indicated that it was not able to receive the necessary consents and waivers to do so, including from the Company. Grace has further indicated that, with an appeals process before the Third Circuit Court of Appeals, its target date to emerge from bankruptcy is the fourth quarter of 2013; however, there can be no assurance that this timing for emergence will be correct. Consistent with our Settlement agreement, we are prepared to pay the Settlement amount directly to the asbestos trusts to be established under section 524(g) of the Bankruptcy Code once the conditions of the Settlement agreement are fully satisfied. Among those conditions is that approval of an appropriate Grace bankruptcy plan -- containing all releases, injunctions, and protections required by the Settlement agreement -- be final and not subject to any appeal. Given the pending appeals (which include, without limitation, challenges to the injunctions and releases in the PI Settlement Plan), the condition that approval of the PI Settlement Plan be final and not subject to any appeal has not been satisfied at this time. The Company has not waived this, or any other, condition of the Settlement agreement nor can there be any assurance that each of the parties whose consent or waiver is required for Grace to emerge from bankruptcy while the appeals are pending will provide such consent or waiver. "While the Bankruptcy Court and the District Court have confirmed the PI Settlement Plan, we do not know whether or when the Third Circuit Court of Appeals will affirm the Amended District Court Confirmation Order or the Amended District Court Opinion, whether or when the Bankruptcy and Amended District Court Opinions or the Bankruptcy and Amended District Court Confirmation Orders will become final and no longer subject to appeal, or whether or when a final plan of reorganization (whether the PI Settlement Plan or another plan of reorganization) will become effective. Assuming that a final plan of reorganization (whether the PI Settlement Plan or another plan of reorganization) is confirmed by the Bankruptcy Court and the District Court, and does become effective, we do not know whether the final plan of reorganization will be consistent with the terms of the Settlement agreement or if the other conditions to our obligation to pay the Settlement agreement amount will be met. If these conditions are not satisfied or not waived by us, we will not be obligated to pay the amount contemplated by the Settlement agreement. However, if we do not pay the Settlement agreement amount, we and our affiliates will not be released from the various claims against us. We will continue to review and monitor the progress of the Grace bankruptcy proceedings (including appeals and other proceedings relating to the PI Settlement Plan, the Bankruptcy and Amended District Court Opinions, and the Bankruptcy and Amended District Court Confirmation Orders), as well as any amendments or changes to the PI Settlement Plan or to Bankruptcy and Amended District Court Opinions and Confirmation Orders, to verify compliance with the Settlement agreement. "If the Settlement agreement does not become effective, either because Grace fails to emerge from bankruptcy or because Grace does not emerge from bankruptcy with a plan of reorganization that is consistent with the terms of the Settlement agreement, then we and our affiliates will not be released from the various asbestos-related, fraudulent transfer, successor liability, and indemnification claims made against us and our affiliates, and all of these claims would remain pending and would have to be resolved through other means, such as through agreement on alternative settlement terms or trials. In that case, we could face liabilities that are significantly different from our obligations under the Settlement agreement. We cannot estimate at this time what those differences or their magnitude may be. In the event these liabilities are materially larger than the current existing obligations, they could have a material adverse effect on our consolidated financial condition or results of operations." No further updates were reported in the Company's Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarterly period ended September 30, 2012. Sealed Air Corporation is engaged in food safety and security, facility hygiene and product protection. The Company serves a range of end markets including food and beverage processing, food service, retail, health care and industrial, commercial and consumer applications. About W.R. Grace Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally. The company and its debtor-affiliates filed for chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, P.C., Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Scott Baena, Esq., and Jay M. Sakalo, Esq., at Bilzin Sumberg Baena Price & Axelrod, LLP, to represent it. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel, LLP, represents the Official Committee of Equity Security Holders. W.R. Grace obtained confirmation of a plan co-proposed with the Official Committee of Asbestos Personal Injury Claimants, the Official Committee of Equity Security Holders, and the Asbestos Future Claimants Representative. The Chapter 11 plan is built around an April 2008 settlement for all present and future asbestos personal injury claims, and a subsequent settlement for asbestos property damage claims. Implementation of the Plan has been held up by appeals in District Court from various parties, including a group of prepetition bank lenders and the Official Committee of Unsecured Creditors. District Judge Ronald Buckwalter on Jan. 31, 2012, entered an order affirming the bankruptcy court's confirmation of W.R. Grace & Co. and its debtor affiliates' Plan of Reorganization. Bankruptcy Judge Judith Fitzgerald had approved the Plan on Jan. 31, 2011. On April 20, 2012, the company filed a motion with the Bankruptcy Court to approve definitive agreements among itself, co-proponents of the Plan, BNSF railroad, several insurance companies and the representatives of Libby asbestos personal injury claimants, to settle objections to the Plan. Pursuant to the agreements, the Libby claimants and BNSF would forego any further appeals to the Plan. Bankruptcy Creditors' Service, Inc., publishes W.R. Grace Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by W.R. Grace, W.R. Grace Co. - Conn. and their affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) W25 LLC: Creditors Have Until Feb. 13 to File Proofs of Claim ------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York, in a revised order, established Feb. 13, 2013, as the deadline for any individual or entity to file proofs of claim against W25 LLC. W25 LLC filed a bare-bones Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-14526) in Manhattan on Nov. 6, 2012. Avrum J. Rosen, Esq., at The Law Offices of Avrum J. Rosen, PLLC, in Huntington, New York, serves as counsel. The Debtor disclosed $44,001,000 in assets and $48,756,419 in liabilities as of the Chapter 11 filing. W25 LCC: Section 341(a) Meeting Adjourned to Jan. 28 ---------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York adjourned to Jan. 28, 2013, at 2:30 p.m., the meeting of creditors in the Chapter 11 case of W25 LLC. The meeting has also been moved to 26 Federal Plaza New York City from 80 Broad Street New York City. The meeting was previously scheduled for Jan. 7. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This meeting of creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. W25 LLC filed a bare-bones Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-14526) in Manhattan on Nov. 6, 2012. Avrum J. Rosen, Esq., at The Law Offices of Avrum J. Rosen, PLLC, in Huntington, New York, serves as counsel. The Debtor disclosed $44,001,000 in assets and $48,756,419 in liabilities as of the Chapter 11 filing. WILLIAM M. FOSTER: Wilmington Plantation Dispute Goes to Trial -------------------------------------------------------------- Bankruptcy Judge Susan D. Barrett denied cross motions for summary judgment on William M. Foster, Jr.'s Objection to the Claim of Wilmington Plantation, LLC, saying "material question of fact remains". The dispute centers around the creation and development of Wilmington Plantation Condominium on Wilmington Island located in Chatham County, Georgia and the ownership of various portions of the property. Wilmington Plantation Condominium contains approximately 19.846 acres which can be conceptually divided into two areas of land. In the center of the 19.846 acres is a multi- story old historic hotel building containing developed condominium units previously sold by the Debtor. Surrounding the center property is about 10 acres of undeveloped land. The surrounding land is at the heart of the dispute. Under the condominium declaration, the Debtor purportedly placed the entire 19.846 acres into the condominium which purported caused him to be unable to properly convey title to the property Wilmington Plantation. On May 16, 2011, Wilmington Plantation filed a proof of claim in the Debtor's bankruptcy case the amount of $21,138,884. A copy of the Court's Jan. 16, 2013 Opinion and Order is available at http://is.gd/AVO1hDfrom Leagle.com. William M. Foster, Jr., filed for chapter 11 bankruptcy relief (Bankr. S.D. Ga. Case No. 11-30021) on Jan. 19, 2011. WOUND MANAGEMENT: Ordered to Pay $20,000 Penalty in Civil Action ---------------------------------------------------------------- Wound Management Technologies, Inc., has been permanently enjoined from violations of Section 17(a) of the Securities Act and Section 10(b) of the Securities Exchange Act involving the payment of undisclosed compensation to investment advisors, managers, trustees, or any associated person or the manipulation of the price or volume of any security. The final judgment was delivered by the United States District Court for the Southern District of Florida. The Company must also pay a civil penalty of $20,000 within 14 days of the judgment. The final judgment resolved claims against the Company and its former CEO, Scott Haire, in the Securities and Exchange Commission's civil enforcement action based upon actions alleged to have been taken in 2009. About Wound Management Fort Worth, Texas-based Wound Management Technologies, Inc., markets and sells the patented CellerateRX(R) product in the expanding advanced wound care market; particularly with respect to diabetic wound applications. Pritchett, Siler & Hardy, P.C., in Salt Lake City, Utah, expressed substantial doubt about Wound Management's ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 31, 2011. The independent auditors noted that the Company has incurred substantial losses and has a working capital deficit. The Company's balance sheet at Sept. 30, 2012, showed $2.76 million in total assets, $6.36 million in total liabilities and a $3.60 million deficit. * Home Ownership Through LLC Means Loss of Exemption ---------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that owning a home through a limited liability company may carry advantages, although LLC ownership can become a disadvantage in bankruptcy. The report recounts that a woman owned a home. Before bankruptcy, she transferred ownership to an LLC of which she was the only member. The LLC wasn't liable on the mortgage. The woman remained liable to pay the mortgage. In Chapter 7 bankruptcy, the woman claimed a $21,000 Ohio homestead exemption in the home. According to the report, the bankruptcy court denied the exemption, and the Bankruptcy Appellate Panel for the Sixth Circuit agreed in a Jan. 18 opinion by U.S. Bankruptcy Judge C. Kathryn Preston. The result turned on Ohio exemption law, Judge Preston said. The Ohio statute confers the homestead exemption on "one parcel or item of real or personal property" used as a residence. Judge Preston held that the Ohio Supreme Court would rule that ownership of an LLC isn't equivalent to ownership of real estate. Consequently, there could be no exemption. The case is In re Breece, 12-8018, U.S. Bankruptcy Appellate Panel for the Sixth Circuit (Cincinnati). * Likely Pick to Head SEC Is Veteran Prosecutor and Litigator ------------------------------------------------------------- Jessica Holzer and Scott Patterson, writing for The Wall Street Journal, reported that, for the first time, a former prosecutor appears poised to be nominated as the nation's top securities regulator. Mary Jo White, who made her name pursuing terrorists, mobsters and white-collar criminals as a federal prosecutor in New York, is the Obama administration's likely pick to lead the Securities and Exchange Commission, WSJ said, citing people familiar with the administration's search. WSJ pointed out that the post has recently been occupied by career regulators, a politician, an investment banker and a top securities lawyer. Although Ms. White made her name as a prosecutor in the high- profile district that includes Manhattan, for the past decade she has worked as an attorney at the law firm Debevoise & Plimpton LLP, where she oversees the litigation practice, WSJ related. At Debevoise, she advised a number of large securities firms that are regulated by the SEC, a person familiar with the matter said, according to WSJ. She also defended Bank of America Corp.'s former chief executive, Kenneth Lewis, against civil securities-fraud litigation and helped Morgan Stanley vet John Mack when it was getting ready to name him chief executive in 2005, the report further pointed out. As an Obama administration appointee, Ms. White would be barred for two years from working on matters involving her former employer or any clients she had during the two years before her appointment, WSJ said. The pledge would prevent her from meeting with her old law firm or former clients unless other parties are present. WSJ said some SEC observers are concerned that little is known about Ms. White's views on agency policy matters, including a raft of rules related to the Dodd-Frank financial overhaul and the 2012 JOBS Act, which eases access to capital for hedge funds and small businesses. * Calpers Buy-Hold Strategy Recoups $95 Billion Recession Loss -------------------------------------------------------------- Michael B. Marois, writing for Bloomberg News, reported that the California Public Employees' Retirement System is poised to top a record $260 billion in assets, the market value it held before the global financial crisis wiped out more than a third of its wealth, by sticking with a strategy of buy-and-hold. The largest U.S. public pension, with half of its money in publicly traded equities, was worth $253.2 billion on Jan. 17, or about 97 percent of the pre-recession high set in October 2007, Bloomberg said. The fund returned 13 percent in 2012, about the same gain as the Standard & Poor's 500-stock index achieved, according to the report. "A lot of the improvements in portfolio returns is simply reflective of the return of the market," Chief Investment Officer Joe Dear said in an interview with Bloomberg. "But there is still an important lesson there, which is that when the crisis was full on, we didn't drastically reduce our equity exposure." Calpers isn't alone in nearing previous high marks, Bloomberg noted. The 100 largest public pensions in the U.S. had $2.9 trillion in assets in the fourth quarter of 2007, Bloomberg added, citing U.S. Census Bureau data. That dropped to $2 trillion in 2009 and rebounded to almost $2.8 trillion as of Sept. 30, the report added. The median funded status of state pensions, meaning how much money a system has in order to pay its obligations, fell to 72 percent in 2011 from 83 percent in 2007, according to data compiled by Bloomberg. Even with its gains, the Sacramento-based pension is still short $87 billion, or about 26 percent, of meeting its long-term commitments, and has had to ask the state and struggling cities to contribute more, the report said. One municipality, San Bernardino, sought bankruptcy protection, saying it can't afford to pay $13 million it owes to Calpers, the report noted. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Jan. 24-25, 2013 AMERICAN BANKRUPTCY INSTITUTE Rocky Mountain Bankruptcy Conference Four Seasons Hotel Denver, Denver, Colo. Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 7-9, 2013 AMERICAN BANKRUPTCY INSTITUTE Caribbean Involvency Symposium Eden Roc Renaissance, Miami Beach, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 17-19, 2013 AMERICAN BANKRUPTCY INSTITUTE Advanced Consumer Bankruptcy Practice Institute Charles Evans Whittaker Courthouse, Kansas City, Mo. Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 20-22, 2013 AMERICAN BANKRUPTCY INSTITUTE VALCON Four Seasons Las Vegas, Las Vegas, Nev. Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/ Apr. 18-21, 2013 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ June 13-16, 2013 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Mich. Contact: 1-703-739-0800; http://www.abiworld.org/ July 11-13, 2013 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ July 18-21, 2013 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 8-10, 2013 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 22-24, 2013 AMERICAN BANKRUPTCY INSTITUTE Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nev. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ Nov. 1, 2013 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Atlanta Marriott Marquis, Atlanta, Ga. Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 25, 2013 BEARD GROUP, INC. 20th Annual Distressed Investing Conference The Helmsley Park Lane Hotel, New York, N.Y. Contact: 240-629-3300 or http://bankrupt.com/ Dec. 5-7, 2013 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Terranea Resort, Rancho Palos Verdes, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ The Meetings, Conferences and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. Last Updated: Dec. 10, 2012 ********* 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., Washington, D.C., USA. Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, Carmel Paderog, Meriam Fernandez, 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 2013. 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 $975 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-241-8200. *** End of Transmission ***