/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/130529.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, May 29, 2013, Vol. 17, No. 147 Headlines 30DC INC: Delays Form 10-Q for First Quarter 5151 NORTH ORACLE: Case Summary & 5 Unsecured Creditors A&S BOOKSELLERS: Summary Judgment Bid in Nationwide Suit Rejected AGFEED INDUSTRIES: Won't be Able to File Periodic Reports AMARU INC: Amends 2011 Annual Report AMERICAN AIRLINES: Mechanics File for Election to Become Teamsters ARCAPITA BANK: Seeks Final OK for $175MM Loans from Goldman BETTER PLACE: Put Under Forced Liquidation in Israeli Court CAESARS ENTERTAINMENT: Hedge Funds Form Group, Hire Milbank CASH STORE: Incurs C$4.3 Million Net Loss in March 31 Quarter CATASYS INC: Posts $2.6 Million Net Income in First Quarter CHINA GREEN: Delays Form 10-Q for First Quarter CHINA NATURAL: Hearing on Case Dismissal Motion Set for June 20 CHINA TELETECH: Delays Form 10-Q for First Quarter CODA HOLDINGS: Government, Creditors Object in Bankruptcy COLONIAL WAREHOUSE: Court Dismisses Chapter 11 Case COMMUNITY HOME: Will Have Chapter 11 Trustee COMPREHENSIVE CARE: Delays Form 10-Q for First Quarter COTTON & WESTERN: Board Approves Plan of Reorganization CST GROUP: Can't Use Cash Collateral; Grosvenor Wins Stay Relief D & L ENERGY: Walter Haverfield Approved as Environmental Counsel DUNLAP OIL: Canyon Community Wants Cash Use Limited Until June 12 EAST COAST BROKERS: May 30 Hearing on Case Conversion or Dismissal ELBIT VISION: Yossi Ran Appointed as Chairman of the Board EMPRESAS OMAJEDE: Can Hire Charles A. Cuprill as Counsel ENOVA SYSTEMS: Delays Form 10-Q for First Quarter FIRST CONNECTICUT: June 3 Hearing on Motion to Use Cash Collateral FIRST STREET HOLDINGS: Withdraws Bid to Employ Collier Int'l FLORIDA GAMING: Delays Form 10-Q for First Quarter GGW MARKETING: Case Summary & 7 Unsecured Creditors GIBRALTAR KENTUCKY: Facing Chapter 7 Conversion GLOBAL ARENA: Delays Form 10-Q for First Quarter GLOBALSTAR INC: Amends 39.5 Million Shares Resale Prospectus GUIDED THERAPEUTICS: Incurs $1.8-Mil. Net Loss in First Quarter HUDSON & KEYSE: Former Managers Not Entitled to Fees & Expenses ICEWEB INC: Amends First Quarter Form 10-Q ID PERFUMES: Delays Form 10-Q for First Quarter IMPLANT SCIENCES: Expects to Report $5.3 Million Net Loss in Q1 INSPIREMD INC: Reimbursement Coverage for MGuard Coronary EPS INVESTORS CAPITAL: Amends List of Top Unsecured Creditors J.C. PENNEY: Incurs $348 Million Net Loss in First Quarter JAYHAWK ENERGY: Delays Form 10-Q for First Quarter JEH COMPANY: Voluntary Chapter 11 Case Summary JUMP OIL: Gets Final OK to Use Colonial Pacific Cash Collateral KEMET CORP: Number of Directors Lowered to Eight LA JOLLA: Presents Corporate Update at The MoneyShow LEAGUE NOW: Amends First Quarter Form 10-Q for Typos LEE'S FORD: Has Access to Cash Collateral Until June 10 LEE'S FORD: Asks Court to Extend Plan Filing Period Until Sept. 30 LEGENDS GAMING: June 24 Hearing to Confirm Plan LIME ENERGY: Gets NASDAQ Listing Non-Compliance Notice LUCID INC: Delays Form 10-Q for First Quarter MACCO PROPERTIES: U.S. Trustee Says Dismissal Not in Best Interest MARKETING WORLDWIDE: Posts $1.5-Mil. Net Income in March 31 Qtr. MCCLATCHY CO: Shareholders Elect 11 Directors MEG ENERGY: Moody's Assigns Ba1 Rating to New $2-Bil. Revolver MIDTOWN SCOUTS: Hearing Today on Further Access to Cash MIDTOWN SCOUTS: Proposes Hoover Slovacek as Counsel MISSION NEW ENERGY: Arbitration Proceeding vs. PTPN 111 Starts MPM TECHNOLOGIES: Delays Form 10-Q for First Quarter NAMCO LLC: Has Court's Nod to Hire AM Saccullo as Counsel NAMCO LLC: Has Court Okay to Hire Olshan Frome as Attorney NAMCO LLC: Committee Has OK to Hire Pachulski Stang as Counsel NATIONAL HOLDINGS: Posts $494,000 Net Income in March 31 Qtr. NNN PARKWAY: Can Hire Highpoint as Manager & Restructuring Officer OAK KNOLL: General Partner Loses Bid to Dismiss Chapter 11 Case OTELCO INC: Reorganization Plan Declared Effective PARK SIDE ESTATES: Hires Robinson Brog as Counsel PATRIOT COAL: Wants to Employ GT as Litigation Counsel PEER REVIEW: Delays Form 10-Q for First Quarter PIONEER CONTRACTING: Settles US Trustee's Dismissal Bid PITTSBURGH CORNING: Court Issues Final Order Confirming Plan PLAZA VILLAGE: June 3 Hearing on Motions to Dismiss Case PLAZA VILLAGE: Joseph Rodrigues Named as Patient Care Ombudsman PONCE TRUST: Wants Fully Administered Chapter 11 Case Closed POWERWAVE TECHNOLOGIES: Heritage to Co-Manage Sale of Assets PREMIER PAVING: Court OKs Stipulation for Continued Cash Access PRIMCOGENT SOLUTIONS: In Dispute With Everyone; Seeks Cash Use PRIMCOGENT SOLUTIONS: ORIX Says Fort Worth Is Improver Venue PROMMIS HOLDINGS: Committee Balks at Cash Collateral Order PURE BEAUTY: Dismissal of Chapter 11 Case Sought RAPID-AMERICAN CORP: Meeting of Creditors Scheduled for June 4 RESIDENTIAL CAPITAL: Court Dismisses "Flores" Lawsuit RG STEEL: to Sell Real Property to Go Green for $500,000 RG STEEL: Unsecured Creditors Fight Rennert, Goodwin Objections RHYTHM & HUES: Rust Consulting Approved as Noticing & Claims Agent ROCKWELL MEDICAL: Underwriters Buy Add'l 1.7MM Common Shares RODEO CREEK: Wins Approval of Key Employee Retention Plan RODEO CREEK: Committee Can Retain Armstrong Teasdale as Counsel RODEO CREEK: Panel Can Retain BDO Consulting as Financial Advisors RODEO CREEK: Sale Proceeds to Fund Chapter 11 Plan Payments ROSELAND VILLAGE: Hearing on Competing Plan Outlines on July 8 ROTECH HEALTHCARE: Creditors Panel Taps Buchanan Ingersoll ROTECH HEALTHCARE: Panel Taps Grant Thornton as Financial Advisor ROTECH HEALTHCARE: Taps Deloitte & Touche as Independent Auditors ROTECH HEALTHCARE: Young Conaway OK'd as Bankruptcy Co-Counsel SCOOTER STORE: Panel Taps Cooley and Cousins Chipman as Counsel SCOOTER STORE: May Hire Morgan Joseph as Investment Banker SCOOTER STORE: Young Conaway Approved as Bankruptcy Counsel SIERRA NEGRA: Taps Munger Chadwick as Special Utilities Counsel SIMON WORLDWIDE: Delays Form 10-Q for First Quarter SOMERSET PROPERTIES: Wins Confirmation of 2nd Amended Plan SOUTH LAKES: Pietersma & Company OK'd to Conduct Calves Sale SOUTHERN OAKS: Has Access to Cash Collateral Until October 2013 SOUTHERN OAKS: Opposes SunTrust Mortgage Stay Relief Bid SUNTECH POWER: Has Forbearance with Noteholders Until June 28 T-L BRYWOOD: Ill. Court Transfers Venue of Case to N.D. Ind. THERAPEUTICSMD INC: Named Former Johnson & Johnson Exec. to Board TLO LLC: Owners to Spar on DIP Financing at June 11 Hearing TLO LLC: Furr and Cohen Hiring Has Interim Approval TLO LLC: Taps Marcum LLP as Accountants TLO LLC: Rejecting Equifax Data License Deals & Goldberg Lease TOBACCO SQUARE: Judge Makes Further Clarifications in PCB Suit TRAFFIC CONTROL: Court Releases Epiq as Claims & Noticing Agent TRAINOR GLASS: Miriam R. Stein Authorized to Withdraw as Counsel TRI-STATE FINANCIAL: Trustee's Fees & Expenses Allowed TRI-VALLEY VINEYARDS: Can't Appeal Order Denying TRO UNITEK GLOBAL: Given Until July 31 to Refinance Debt UNIVERSAL HEALTH: Wants BankUnited to File Adversary Proceeding VANDERRA RESOURCES: Amends Plan of Liquidation VANN'S INC: Perkins Coie, Hamstreet to Split $336K Carve-Out VERTICAL COMPUTER: Delays Q1 Form 10-Q for Refinancing Issues VIGGLE INC: Had $3.3 Million in Revenue in F3Q 2013 VYSTAR CORP: Delays Filing of Annual and Periodic Reports W. O. WHITE: Case Summary & 20 Largest Unsecured Creditors WAVE SYSTEMS: Posts Financial Statements of Safend WINDSORMEADE OF WILLIAMSBURG: Court Confirms Amended Ch.11 Plan WVSV HOLDINGS: Hearing on Case Dismissal Continued to June 3 WYLDFIRE ENERGY: Lain Faulkner Approved as Accountant WYLDFIRE ENERGY: Michael McConnell Selected as Chapter 11 Trustee * Ex-AIG Chief Greenberg Moves to Toss Spitzer Suit * N.Y. Atty. Gen. Lays Out Complaints v. Wells Fargo, BofA * Mortgage Jobs Sent to India by U.S. Banks * SEC Refocuses on Accounting Fraud * Chambers USA 2013 Ranks Dorsey & Whitney Bankruptcy Lawyers * Chambers USA Ranks Sidley's Bankruptcy/Restructuring Lawyers * Chambers USA Recognizes Thompson Hine's Bankruptcy Lawyers * Upcoming Meetings, Conferences and Seminars ********* 30DC INC: Delays Form 10-Q for First Quarter -------------------------------------------- 30DC, Inc., was unable to prepare its accounting records and schedules in sufficient time to allow its accountants to complete their review of the Company's financial statements for the period ended March 31, 2013, before the required filing date for the subject Quarterly Report on Form 10-Q. The Company intends to file the subject Quarterly Report on Form 10-Q on or before the sixtieth calendar day following the prescribed due date. About 30DC Inc. New York-based 30DC, Inc., provides Internet marketing services and related training to help Internet companies in operating their businesses. It operates in two divisions, 30 Day Challenge and Immediate Edge. The Company reported a net loss of $1.44 million for the fiscal year ended June 30, 2011, following a net loss of $1.06 million in fiscal 2010. As reported in the TCR on Dec. 19, 2011, Marcum LLP, in New York, expressed substantial doubt about 30DC's ability to continue as a going concern, following the Company's results for the fiscal year ended June 30, 2011. The independent auditors noted that the Company has had recurring losses, and has a working capital and stockholders' deficiency as of June 30, 2011. The Company's balance sheet at March 31, 2012, showed $1.82 million in total assets, $2.21 million in total liabilities and a $394,450 total stockholders' deficiency. The Company said in its quarterly report for the period ending March 31, 2012, that if it is unable to raise additional capital or encounters unforeseen circumstances, it may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, issuance of additional shares of the Company's stock to settle operating liabilities which would dilute existing shareholders, curtailing its operations, suspending the pursuit of its business plan and controlling overhead expenses. The Company cannot provide any assurance that new financing will be available to it on commercially acceptable terms, if at all. These conditions raise substantial doubt about the Company's ability to continue as a going concern. 5151 NORTH ORACLE: Case Summary & 5 Unsecured Creditors ------------------------------------------------------- Debtor: 5151 North Oracle LLC, an Arizona Limited Liability Company 5151 N. Oracle Road #210 Tucson, AZ 85704 Bankruptcy Case No.: 13-08633 Chapter 11 Petition Date: May 22, 2013 Court: United States Bankruptcy Court District of Arizona (Tucson) Judge: Eileen W. Hollowell Debtor's Counsel: Jeffrey M. Neff, Esq. LAW OFFICE OF JEFFREY M. NEFF, P.C. 4568 E Camp Lowell Dr Tucson, AZ 85712 Tel: (520) 722-8030 Fax: (520) 722-8032 E-mail: Jeff@Nefflawaz.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its largest unsecured creditors, filed together with the petition, is available for free at http://bankrupt.com/misc/azb13-8633.pdf The petition was signed by Craig Courtney, member and manager. A&S BOOKSELLERS: Summary Judgment Bid in Nationwide Suit Rejected ----------------------------------------------------------------- NATIONWIDE BOOK INDUSTRIES, LLC, Plaintiff, v. A&S BOOKSELLERS, INC., et al., Defendants, Civil Action No. 11-12195 (D. Mass.), arises out of a series of purchase orders under which the Nationwide Book Industries agreed to sell more than 216,000 books to A&S Booksellers. Nationwide claims that it continued to fill orders and ship books to A&S based on repeated assurances from A&S' principal, defendant Andrew Weiss, that A&S' business was prospering and that payment to Nationwide would be made in full. It further claims that Mr. Weiss's representations were false, and were made only as a pretense to obtain additional books from the plaintiff without paying for them. Nationwide has asserted claims against A&S for breach of contract (Count I) and unfair business practices (Count II). It has also asserted a claim against Mr. Weiss for fraudulent pretense and deception, by which A&S is seeking to hold Mr. Weiss liable under Mass. Gen. Laws ch. 93A (Count III). Nationwide's claims against A&S are currently stayed following A&S's bankruptcy filing in 2012. Mr. Weiss, meanwhile, is seeking summary judgment, pursuant to Fed. R. Civ. P. 56, on Nationwide's claim against him under Chapter 93A. The plaintiff opposes the motion and urges the court to grant summary judgment in its favor, even absent a motion, pursuant to Fed. R. Civ. P. 56(f)(1). In a May 22, 2013 Memorandum of Decision and Order available at http://is.gd/OTFzwRfrom Leagle.com, Magistrate Judge Judith Gail Dein said there are genuine issues of material fact which preclude summary judgment in favor of either party. Accordingly, Mr. Weiss's motion for summary judgment is denied, and the Court declines to grant summary judgment in favor of the non-moving party under Rule 56(f)(1). A&S Booksellers, Inc., filed for Chapter 11 bankruptcy (Bankr. C.D. Cal. Case No. 12-10392) on Jan. 13, 2012. Judge Victoria S. Kaufman oversees the case. The Law Offices of Michael Jay Berger, Esq. -- michael.berger@bankruptcypower.com -- serves as the Debtor's counsel. In its petition, the Debtor estimated $100,001 to $500,000 in assets and $1 million to $10 million in debts. The petition was signed by Andrew Weiss, president. A&S Booksellers, Inc., in West Hills, California, does business as A+S Booksellers, Crown Books West Corporation, Crown Books Corporation, Kids & Design, Crown Design, Crown Kids & Design, Crown Outlet, A&S Bargain Books, Century City/Crown Books, A+S Crown Books, Super Crown & Design, Broders Books, Inc., R.I.P. Halloween, Super Crown Books Corporation, and Crown Books & Design. AGFEED INDUSTRIES: Won't be Able to File Periodic Reports --------------------------------------------------------- AgFeed Industries, Inc., was unable to file its quarterly report on Form 10-Q for the quarter ended March 31, 2013, within the prescribed time period without unreasonable effort or expense. As previously disclosed, on Jan. 31, 2012, the Company announced that its special committee of the board of directors had completed its investigation into certain accounting issues in the Company's animal nutrition and legacy farm hog operations in China. Also, as previously disclosed, the Company has been in the process of restating its unaudited financial statements for the quarters ended March 31, and June 30, 2011, its audited financial statements for the years ended Dec. 31, 2010, 2009, 2008 and 2007 and its unaudited financial statements for all quarters within those years. The audits of the Company's restated financial statements for the year ended Dec. 31, 2010, and its financial statements for the years ended Dec. 31, 2011, and 2012 must be completed before the Company can file the Form 10-Q or any of its prior delinquent annual reports on Form 10-K or quarterly reports on Form 10-Q. Because of the previously disclosed liquidity constraints that the Company faces, the Company has stopped work on the audits of the Annual Financial Statements. As a result, the Company believes it is unlikely that it will be able to file (1) the Form 10-Q, (2) its other delinquent annual reports on Form 10-K or quarterly reports on Form 10-Q, or (3) any annual reports on Form 10-K or quarterly reports on Form 10-Q that become due in the future. As previously disclosed, the Company is evaluating its strategic options, which may include the sale of all or substantially all of the Company's assets. About Agfeed Industries NASDAQ Global Market Listed AgFeed Industries is an international agribusiness with operations in the U.S. and China. AgFeed has two business lines: animal nutrition in premix, concentrates and complete feeds and hog production. In the U.S., AgFeed's hog production unit, M2P2, is a market leader in setting new standards for production efficiency and productivity. AgFeed believes the transfer of these processes, procedures and techniques will allow its new Western-style Chinese hog production units to set new standards for production in China. China is the world's largest pork market consuming 50% of global production and over 62% of total protein consumed in China is pork. Hog production in China currently enjoys income tax free status. AMARU INC: Amends 2011 Annual Report ------------------------------------ Amaru, Inc., filed with the U.S. Securities and Exchange Commission its annual report, as restated, disclosing a net loss of $2.10 million on $4,462 of revenues for the year ended Dec. 31, 2011, as compared with a net loss of $1.37 million on $4,462 of total revenue as originally reported. The Company's restated balance sheet at Dec. 31, 2011, showed $2.67 million in total assets, $3.84 million in total liabilities and a $1.16 million total stockholders' deficit. The Company previously reported $2.86 million in total assets, $3.44 million in total liabilities and a $578,709 total stockholders' deficit. A copy of the Amended Form 10-K is available for free at: http://is.gd/6gAtX5 About Amaru Inc. Singapore-based Amaru, Inc., a Nevada corporation, is in the business of broadband entertainment-on-demand, streaming via computers, television sets, PDAs (Personal Digital Assistant) and the provision of broadband services. The Company's business includes channel and program sponsorship (advertising and branding); online subscriptions, channel/portal development (digital programming services); content aggregation and syndication, broadband consulting services, broadband hosting and streaming services and E-commerce. After auditing the 2011 results, Wilson Morgan, LLP, in Irvine, California, noted that the Company has sustained accumulated losses from operations totalling $40.7 million at Dec. 31, 2011. This condition and the Company's lack of significant revenue, raise substantial doubt about the Company's ability to continue as going concern, the auditors said. Amaru reported a net loss from operations of $1.37 million in 2011, compared with a net loss from operations of $1.50 million in 2010. The Company's balance sheet at Sept. 30, 2012, showed $3.28 million in total assets, $3.08 million in total liabilities and $195,261 in total stockholders' equity. AMERICAN AIRLINES: Mechanics File for Election to Become Teamsters ------------------------------------------------------------------ International Brotherhood of Teamsters on May 28 disclosed that American Airlines mechanics and related workers filed for an election on May 28 with the National Mediation Board (NMB) as part of a months-long effort to become Teamsters. The petition for an NMB election comes on the heels of a similar move by US Airways mechanics seeking Teamster representation who filed for their election earlier this month. "Workers around the country have been under attack for years and we as American Airlines mechanics are no exception," said Bill Wheeler, a 26-year mechanic who traveled to Washington, DC for a press conference announcing the filing. "After enduring 20 years of concessions, outsourced jobs, bankruptcy, frozen pensions and an overall lack of respect, we are coming together to bring in the bargaining power of the Teamsters Union, which has the strongest record representing mechanics in our industry." "From day one, this campaign has been about our craft standing up and fighting back against the rampant outsourcing and other abuses we've seen over the years," said Jim Witt, a 24-year AA mechanic from Los Angeles. "We've had enough and [Tues]day with the Teamsters we are drawing a line in the sand. The Teamsters have the experience and power to stand up to management and restore the dignity of our profession." AA mechanics and related employees launched their campaign in June of last year to seek industry-leading representation with the Teamsters. With over 11,000 mechanics and related nationwide, the workers teamed up with the Teamsters Airline Division and the Teamsters Aviation Mechanics Coalition (TAMC) to win majority support for the union. "Today's election filing is a tremendous milestone for American Airlines mechanics who have built a powerful mechanic-led campaign for Teamster representation," said Teamsters General President James P. Hoffa. "Their determination despite the tough odds has led to this historic achievement and will lead to a strong future for mechanics and related at AA." "For too long mechanics in the airline industry have seen jobs outsourced and standards plummet, comprising maintenance quality, workers' livelihoods and the safety of the flying public," said Capt. David Bourne, Director of the Teamsters Airline Division. "This impressive campaign for Teamster representation at America Airlines represents a huge step toward reversing this trend. The Teamsters Airline Division is proud to work with these mechanics in this historic effort." American Airlines has been in bankruptcy since 2011, resulting in the downsizing of aircraft maintenance stations and furloughs targeting AA mechanics. Meanwhile, a bankruptcy judge recently approved AA's merger deal with US Airway, which will create the world's largest airline. The Teamsters represent more than 80,000 workers in the airline industry in every craft and class, including 18,000 airline mechanics and related -- more than any other union. If mechanics at AA and US Airways are successful in their Teamster drives, the Teamsters will represent more than 30,000 airline mechanics and related. Founded in 1903, the International Brotherhood of Teamsters -- http://www.teamster.org-- represents more than 1.4 million hardworking men and women in the United States, Canada and Puerto Rico. About American Airlines AMR Corp. and its subsidiaries including American Airlines, the third largest airline in the United States, filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 11-15463) in Manhattan on Nov. 29, 2011, after failing to secure cost-cutting labor agreements. AMR, previously the world's largest airline prior to mergers by other airlines, is the last of the so-called U.S. legacy airlines to seek court protection from creditors. 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. The Retiree Committee is represented by Jenner & Block LLP's Catherine L. Steege, Esq., Charles B. Sklarsky, Esq., and Marc B. Hankin, Esq. AMR and US Airways Group, Inc., on Feb. 14, 2013, announced a definitive merger agreement under which the companies will combine to create a premier global carrier, which will have an implied combined equity value of approximately $11 billion. The deal is subject to clearance by U.S. and foreign regulators and by the bankruptcy judge overseeing AMR's bankruptcy case. In April 2013, AMR filed a Chapter 11 plan of reorganization that will carry out the merger. By distributing stock in the merged airlines, the plan is designed to pay all creditors in full, with interest. 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). ARCAPITA BANK: Seeks Final OK for $175MM Loans from Goldman ----------------------------------------------------------- Arcapita Bank B.S.C.(c), et al., ask the U.S. Bankruptcy Court for the Southern District of New York to enter a final order authorizing them to obtain replacement postpetition financing on a secured and superpriority basis of up to $175 million from Goldman Sachs International. The replacement financing will to repay existing postpetition financing from Fortress Credit Corp. and to conclude the Debtors' Chapter 11 cases. The Debtors have repaid approximately $45 million of the Fortress Facility and $105 million remains outstanding. The Fortress Facility matures six months after the execution date, or June 14, 2013. At the effective date of the Debtors' Plan, the DIP Transaction will convert to an exit facility with incremental availability resulting in $350 million of total exit facility obligations. The material terms of the DIP Transaction Documents are: DIP Purchaser/Borrower: AIHL Investment Agent: Goldman Sachs or a permitted assignee or Designee DIP Participants: The Investment Agent, certain banks, other financing entities and other persons that from time to time may become party to the applicable investment agency agreement Rate: LIBOR (floor of 1.5%) + a margin of 8.25% p.a payable in cash. Fees and Expenses: AIHL will pay the reasonable out-of-pocket expenses of the Investment Agent, including expenses associated with syndication of the DIP Facility and the fees and disbursements of the Investment Agent's attorneys and advisors, as well as any taxes, arising in connection with the DIP Transaction Documents. AIHL will also pay the fees in the amounts agreed in the Fee Letter. AIHL will also pay the losses or expenses incurred by the DIP Participants as a consequence of making funds available under the DIP Facility DIP Termination Date: The DIP Facility will mature on July 31, 2013; provided that, in the event that the entry of the Confirmation Order will be delayed beyond July 31, 2013, the DIP Termination Date may be extended at AIHL's option to Sept. 30, 2013 The DIP Facility may be converted to a Murabaha exit facility, subject to the Debtors' satisfaction of certain conditions precedent and other terms. The Debtors are represented by: Michael A. Rosenthal, Esq. Craig H. Millet, Esq. Matthew J. Williams, Esq. Joshua Weisser, Esq. GIBSON, DUNN & CRUTCHER LLP 200 Park Avenue New York, NY 10166-0193 Tel: (212) 351-4000 Fax: (212) 351-4035 A copy of the Motion is available at: http://bankrupt.com/misc/arcapita.doc1157.pdf As reported in the TCR on May 20, 2013, the Bankruptcy Court approved the Debtors' entry into a commitment letter and related documents, as later amended by that certain Amendment Agreement dated May 17, 2013, with Goldman Sachs, which set forth the basic terms of the DIP Transaction as well as an exit facility with incremental availability (leading to a total of $350 million of principal exit facility obligations). A copy of the May 17, 2013 Court Order is available at: http://bankrupt.com/misc/arcapita.doc1113.pdf About Arcapita Bank Arcapita Bank B.S.C., also known as First Islamic Investment Bank B.S.C., along with affiliates, filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 12-11076) in Manhattan on March 19, 2012. The Debtors said they do not have the liquidity necessary to repay a US$1.1 billion syndicated unsecured facility when it comes due on March 28, 2012. Falcon Gas Storage Company, Inc., filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-11790) on April 30, 2012. Falcon Gas is an indirect wholly owned subsidiary of Arcapita that previously owned the natural gas storage business NorTex Gas Storage Company LLC. In early 2010, Alinda Natural Gas Storage I, L.P. (n/k/a Tide Natural Gas Storage I, L.P.), Alinda Natural Gas Storage II, L.P. (n/k/a Tide Natural Gas Storage II, L.P.) acquired the stock of NorTex from Falcon Gas for $515 million. Arcapita guaranteed certain of Falcon Gas' obligations under the NorTex Purchase Agreement. The Debtors tapped Gibson, Dunn & Crutcher LLP as bankruptcy counsel, Linklaters LLP as corporate counsel, Towers & Hamlins LLP as international counsel on Bahrain matters, Hatim S Zu'bi & Partners as Bahrain counsel, KPMG LLP as accountants, Rothschild Inc. and financial advisor, and GCG Inc. as notice and claims agent. Milbank, Tweed, Hadley & McCloy LLP represents the Official Committee of Unsecured Creditors. Houlihan Lokey Capital, Inc., serves as its financial advisor and investment banker. Founded in 1996, Arcapita is a global manager of Shari'ah- compliant alternative investments and operates as an investment bank. Arcapita is not a domestic bank licensed in the United States. Arcapita is headquartered in Bahrain and is regulated under an Islamic wholesale banking license issued by the Central Bank of Bahrain. The Arcapita Group employs 268 people and has offices in Atlanta, London, Hong Kong and Singapore in addition to its Bahrain headquarters. The Arcapita Group's principal activities include investing on its own account and providing investment opportunities to third-party investors in conformity with Islamic Shari'ah rules and principles. The Arcapita Group had roughly US$7 billion in assets under management. On a consolidated basis, the Arcapita Group owns assets valued at roughly US$3.06 billion and has liabilities of roughly US$2.55 billion. The Debtors owe US$96.7 million under two secured facilities made available by Standard Chartered Bank. Arcapita explored out-of-court restructuring scenarios but was unable to achieve 100% lender consent required to effectuate the terms of an out-of-court restructuring. Subsequent to the Chapter 11 filing, Arcapita Investment Holdings Limited, a wholly owned Debtor subsidiary of Arcapita in the Cayman Islands, issued a summons seeking ancillary relief from the Grand Court of the Cayman Islands with a view to facilitating the Chapter 11 cases. AIHL sought the appointment of Zolfo Cooper as provisional liquidator. On Feb. 8, 2013, the Debtors filed with the Bankruptcy Court a disclosure statement in support of their Joint Plan of Reorganization, dated Feb. 8, 2013. The Plan contemplates, among others, the entry of the Debtors into a $185 million Murabaha exit facility that will allow the Debtors to wind down their businesses and assets for the benefit of all creditors and stakeholders. On April 25, 2013, the Debtors filed their Second Amended Joint Plan of Reorganization. On April 26, 2013, the Court approved the related disclosure statement. A copy of the Second Amended Disclosure Statement is available at: http://bankrupt.com/misc/arcapta.doc1038.pdf A hearing is scheduled for consideration of the Plan on June 11, 2013. BETTER PLACE: Put Under Forced Liquidation in Israeli Court ----------------------------------------------------------- Better Place, Inc. lost a stunning $459 million in 2012, while bringing in only $6.9 million in Sales -- the now bankrupt clean energy startup's private Financial Statements released on May 28 by private company research firm PrivCo reveal. Better Place is an electric vehicle charging station start-up that had raised over $900 Million in investor funding, and has now collapsed into forced liquidation in an Israeli District Court. Exclusive Better Place Inc. financial statements released by PrivCo disclose for the first time the extent of Better Place Inc.'s stunning losses, against its meager sales of just $6.9 million in 2012 while losing the shocking sum of $459 million to achieve those sales: http://www.privco.com/better-place-forced- into-liquidation-after-cash-runs-out Better Place Inc. recently raised funding at a valuation of $2.25 billion (the startup's peak valuation) in November 2011. PrivCo CEO and Corporate Lawyer Sam Hamadeh, Esq. said on May 28 in a statement: "The sheer size of Better Place's more than $900 million in losses -- and the inchoate, near non-existent nature of its underlying business, with $6.9 Million in Sales in 2012 and $0 in 2011 -- shock one's conscience." Better Place Inc.'s 2012 & 2011 Financial Statements released exclusively by PrivCo, the financial data provider on privately held companies: http://www.privco.com/better-place-forced-into-liquidation-after- cash-runs-out ISRAELI BANKRUPTCY LAWS VERY PRO-CREDITOR, BUT FEW ASSETS LEFT v. $915 MILLION OF LIABILITIES "The Israeli insolvency process is based on the Companies Ordinance 5743-1983, the Companies Regulations 5477-1987, and the Bankruptcy Ordinance of 1980," said PrivCo CEO and corporate attorney Sam Hamadeh, Esq., an expert on corporate restructurings. "Because Better Place has little chance for a 'Reorganization' under Israeli bankruptcy law (similar to a company Chapter 11 reorganization in the U.S.), it was forced into Liquidation in the Lod District Court in Israel on Sunday, a process initiated by a major shareholder. Under Israeli corporate bankruptcy law, the State Receiver -- who represents the Government -- acts as the official custodian of Better Place's assets. The State Receiver also appoints a temporary liquidator, the final decision of which PrivCo expects shortly." LITTLE CHANCE OF A REORGANIZATION FOR BETTER PLACE: NO "DEBTOR-IN- POSSESSION" FINANCING UNDER ISRAELI LAW Mr. Hamadeh explains: "Unlike U.S. Bankruptcy Law, under Israeli bankruptcy law there is no automatic seniority for lenders to the distressed company while it attempts to operate while in bankruptcy, known as 'debtor-in-possession' financing (which in the U.S. has first claims over pre-bankruptcy lenders). As a result, a reorganization similar to a U.S. Chapter 11 process is nearly impossible. So Better Place has no access to capital and will likely be forced to liquidate." Under Sunday's Israeli Liquidation Petition, Better Place listed assets of $9.5M, supplier liabilities of $40M, and cumulative losses of $812M. PrivCo infographic of the Israeli corporate bankruptcy process: http://www.privco.com/exhibit/df0e09d6f25a15a815563df9827f48fa?pop up=1 To view privately-held BETTER PLACE INC.'s Income Statements and Balance Sheets released by PrivCo: http://www.privco.com/private-company/better-place-inc About PrivCo PrivCo is a provider of private company financial data and independent research on over 210,000 private companies and 80,000 private company deals, including private company mergers & acquisitions, private equity, venture capitals, LBOs, and IPOs. CAESARS ENTERTAINMENT: Hedge Funds Form Group, Hire Milbank ----------------------------------------------------------- Emily Glazer and Alexandra Berzon, writing for The Wall Street Journal, report that hedge funds, including Brigade Capital Management LLC, Third Point LLC, Silver Point Capital LP and Omega Advisors Inc., are starting to form an ad hoc committee and want to begin negotiating with Caesars Entertainment Corp.'s owners, Apollo Global Management LLC and TPG, people familiar with the situation said. Paulson & Co. is also an owner. The hedge funds hold chunks of Caesars debt and hope to renegotiate loan terms with the casino giant. The WSJ report relates the lenders' efforts to organize themselves is the latest in what some credit analysts believe will be a series of restructuring discussions around some of Caesars's $24 billion debt load. Analysts have long said that Caesars's debt load is unsustainable despite continuing efforts from the company to push off a reckoning. Of concern to the hedge funds is $4.6 billion of debt held at a Caesars subsidiary that is coming due February 2015. How Caesars handles that debt could affect the rest of the company's financial security, analysts have said, according to the report. Sources told WSJ the group, while not yet formalized, has retained law firm Milbank, Tweed, Hadley & McCloy LLP. They are also in early talks with at least one investment bank though no official engagement letter has been signed yet, they added. The report relates people familiar with the matter said the hedge funds are concerned that Caesars may not be able to refinance that debt when it comes due, and want to explore alternatives for addressing the obligations. Still, the hedge funds may not be able to wield much power. So far, they haven't had formal discussions with Caesars's owners, these people said. WSJ notes that Fitch Ratings, in a report released last week, estimated that the operating company has enough cash to last through around 2016, provided the company fulfills certain actions. The report also says Caesars recently announced that it would spin off some of its growth businesses -- including online gambling ventures and some new casino projects -- into a separate entity with the majority owned by Caesars. The transaction is expected to raise around $500 million to $1.2 billion in fresh funds. CASH STORE: Incurs C$4.3 Million Net Loss in March 31 Quarter ------------------------------------------------------------- The Cash Store Financial Services Inc. reported a net loss and comprehensive loss of C$4.28 million on C$46.65 million of revenue for the three months ended March 31, 2013, as compared with a net loss and comprehensive loss of C$41.16 million on C$42.08 million of revenue for the same period a year ago. For the six months ended March 31, 2013, the Company incurred a net loss and comprehensive loss of $5.98 million on $96.16 million of revenue, as compared with a net loss and comprehensive loss of $40.20 million on $87.93 million of revenue for the same period during the prior year. The Company's balance sheet at March 31, 2013, showed C$192.04 million in total assets, C$163.99 million in total liabilities and C$28.05 million in shareholders' equity. A copy of the Report is available for free at: http://is.gd/8dljIf About Cash Store Financial Cash Store Financial is the only lender and broker of short-term advances and provider of other financial services in Canada that is listed on the Toronto Stock Exchange (TSX: CSF). Cash Store Financial also trades on the New York Stock Exchange (NYSE: CSFS). Cash Store Financial operates 512 branches across Canada under the banners "Cash Store Financial" and "Instaloans". Cash Store Financial also operates 25 branches in the United Kingdom. Cash Store Financial is a Canadian corporation that is not affiliated with Cottonwood Financial Ltd. or the outlets Cottonwood Financial Ltd. operates in the United States under the name "Cash Store". Cash Store Financial does not do business under the name "Cash Store" in the United States and does not own or provide any consumer lending services in the United States. * * * As reported in the Feb. 8, 2013 edition of the TCR, Standard & Poor's Ratings Services lowered its issuer credit rating on Cash Store Financial (CSF) to 'CCC+' from 'B-'. The outlook is negative. "The downgrades follow a proposal by the payday loan registrar in Ontario to revoke CSF's payday lending licenses and CSF's announcement that it has discontinued its payday loan product in the region," said Standard & Poor's credit analyst Igor Koyfman. The company's businesses in Ontario, which account for approximately one-third of its store count, will begin offering a new line of credit product to its customers. S&P believes this is to offset the loss of its payday lending product; however, this is a relatively new product, and S&P believes that it will be challenging for the company to replace its lost earnings from the payday loan product. S&P also believe that the registrar's proposal could lead to similar actions in other territories. CATASYS INC: Posts $2.6 Million Net Income in First Quarter ----------------------------------------------------------- Catasys, Inc., reported net income of $2.61 million on $135,000 of total revenues for the three months ended March 31, 2013, as compared with a net loss of $3.37 million on $93,000 of total revenues for the same period during the prior year. "I am pleased that we continue to show improved financial growth, and equally important, continue to grow our client base of insurance companies," commented Rick Anderson, president and COO. "We believe that this expansion will lead to continued financial growth. The signing of our first national insurer was an important milestone and, we believe, is a signpost of things ahead. "While health plans are under increasing pressure to reduce costs -- and healthcare reform intensifies that pressure -- we expect to continue to play a small but significant role in helping insurers to manage costs by delivering >50 percent cost reduction in total healthcare costs for health plan members who have enrolled in our program," Anderson concluded. About Catasys Inc. Based in Los Angeles, California, Hythiam, Inc., n/k/a Catasys, Inc., is a healthcare services management company, providing through its Catasys(R) subsidiary specialized behavioral health management services for substance abuse to health plans. Catasys disclosed a net loss of $11.64 million on $541,000 of total revenues for the 12 months ended Dec. 31, 2012, as compared with a net loss of $8.12 million on $267,000 of total revenues in 2011. The Company's balance sheet at Dec. 31, 2012, showed $4.93 million in total assets, $18.69 million in total liabilities and a $13.75 million total stockholders' deficit. Rose, Snyder & Jacobs LLP, in Encino, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has incurred significant operating losses and negative cash flows from operations during the year ended Dec. 31, 2012, which raise substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning "As of March 28, 2013, we had a balance of approximately $1.6 million cash on hand. We had working capital deficit of approximately $376,000 at December 31, 2012 and have continued to deplete our cash position subsequent to December 31, 2012. We have incurred significant net losses and negative operating cash flows since our inception. We could continue to incur negative cash flows and net losses for the next twelve months. Our current cash burn rate is approximately $450,000 per month, excluding non- current accrued liability payments. We expect our current cash resources to cover expenses into July 2013, however delays in cash collections, revenue, or unforeseen expenditures could impact this estimate. We are in need to obtain additional capital and while we are currently in discussions with our existing shareholders regarding additional financing there is no assurance that additional capital can be raised in an amount which is sufficient for us or on terms favorable to our stockholders, if at all. If we do not obtain additional capital, there is a significant doubt as to whether we can continue to operate as a going concern and we will need to curtail or cease operations or seek bankruptcy relief. If we discontinue operations, we may not have sufficient funds to pay any amounts to stockholders." CHINA GREEN: Delays Form 10-Q for First Quarter ----------------------------------------------- China Green Creative, Inc., said it is in the process of preparing its consolidated financial statements as of and for the three months ended March 31, 2013. The process of compiling and disseminating the information required to be included in its Form 10-Q interim report for the three months ended March 31, 2013, as well as the completion of the required review of the Company's financial information, was not completed by May 15, 2013, without incurring undue hardship and expense. The Company undertakes the responsibility to file that quarterly report no later than five calendar days after its original due date. The Company recorded a net loss of approximately $177,275 for the three months ended March 31, 2013, as compared to a net income of $47,899 for the same period in 2012. The decrease in net income was mainly attributable to the reduction in operation revenue and the increase in general administrative expenses. About China Green China Green Creative, Inc., located in Shenzhen, Guangdong Province, People's Republic of China, is principally engaged in the distribution of consumer goods and electronic products in the PRC. China Green disclosed net income of $635,873 on $6.87 million of revenues for the year ended Dec. 31, 2012, as compared with a net loss of $344,901 on $1.92 million of revenue during the prior year. The Company's balance sheet at Dec. 31, 2012, showed $6.35 million in total assets, $8.06 million in total liabilities and a $1.71 million total stockholders' deficit. Madsen & Associates CPA's, Inc., in Salt Lake City, Utah, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company does not have the necessary working capital to service its debt and for its planned activity, which raises substantial doubt about its ability to continue as a going concern. CHINA NATURAL: Hearing on Case Dismissal Motion Set for June 20 --------------------------------------------------------------- U.S. Bankruptcy Court for the Southern District of New York has set for June 20, 2013, at 2:00 p.m. (Eastern) the hearing on China Natural Gas, Inc.'s motion for dismissal of the involuntary bankruptcy petition signed by Abax Lotus Ltd., Abax Nai Xin A Ltd., and Lake Street Fund LP. Louis T. DeLucia, Esq., an attorney at Schiff Hardin LLP, counsel for alleged debtor China Natural, avers that the petitioning creditors fail to meet the requisite number of creditors to file an involuntary petition, and that the petition was filed in "bad faith" and for an improper purpose. The Debtor is urging the Court to throw out the involuntary Chapter 11 proceedings, saying the filing was part of a director's effort to gain control of the company. The Debtor says that Xiang Dong Yang, who owns Abax Lotus and Abax Nai, had expressed interest in taking the publicly traded company private before the two Abax entities. Mr. DeLucia states that all of the debt allegedly held by the Petitioning Creditors was issued as one Global Note to Abax Lotus, pursuant to an Indenture issued in 2008, and for which Deutsche Bank serves as trustee. According to Mr. DeLucia, Abax Nai and Lake Street purport to hold the debt under the Indenture only by virtue of alleged assignments of the original Global Note debt from Abax Lotus subsequent to the issuance of the original note. "Although the Petitioning Creditors filed certain declarations pursuant to Rule 1003(a) of the Federal Rules of Bankruptcy Procedure, those declarations are in conflict with certain material SEC filings executed by Director Yang in his capacity as a member of the Alleged Debtor's board of directors, and then filed by the Alleged Debtor. Thus, a factual issue exists as to the ownership of the Alleged Claims asserted by the Petitioning Creditors -- a dispute unresolved by simple declarations filed by the Petitioning Creditors," Mr. DeLucia states. Interested parties have until June 6, 2013, at 5:00 p.m. (Eastern) to file an objection to the Alleged Debtor's motion for dismissal of its involuntary bankruptcy case. Attorneys for China Natural can be reached at: SCHIFF HARDIN LLP Louis T. DeLucia, Esq. Alyson M. Fiedler, Esq. 666 Fifth Avenue, 17th Floor New York, NY 10103 Tel: (212) 753-5000 Fax: (212) 753-5044 E-mail: ldelucia@schiffhardin.com afiedler@schiffhardin.com About China Natural Headquartered in Xi'an, Shaanxi Province, P.R.C., China Natural Gas, Inc., was incorporated in the State of Delaware on March 31, 1999. The Company through its wholly owned subsidiaries and variable interest entity, Xi';an Xilan Natural Gas Co., Ltd., and subsidiaries of its VIE, which are located in Hong Kong, Shaanxi Province, Henan Province and Hubei Province in the People's Republic of China ("PRC"), engages in sales and distribution of natural gas and gasoline to commercial, industrial and residential customers through fueling stations and pipelines, construction of pipeline networks, installation of natural gas fittings and parts for end-users, and conversions of gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles at 0ptmobile conversion sites. On Feb. 8, 2013, an involuntary petition for bankruptcy was filed against the Company by three of the Company's creditors, Abax Lotus Ltd., Abax Nai Xin A Ltd., and Lake Street Fund LP (Bankr. S.D.N.Y. Case No. 13-10419). The Petitioners claimed that they have debts totaling $42,218,956.88 as a result of the Company's failure to make payments on the 5% Guaranteed Senior Notes issued in 2008. The Company says it intends to oppose the motion. Adam P. Strochak, Esq., at Weil, Gotshal & Manges, LLP, in Washington, D.C., represents the Petitioners as counsel. CHINA TELETECH: Delays Form 10-Q for First Quarter -------------------------------------------------- China Teletech Holding Inc. was unable to file its quarterly report on Form 10-Q for the quarter ended March 31, 2013, by the May 15, 2013, filing date applicable to smaller reporting companies due to a delay experienced by the Company in completing its financial statements and other disclosures in the Quarterly Report. As a result, the Company is still in the process of compiling required information to complete the Quarterly Report and its independent registered public accounting firm requires additional time to complete its review of the financial statements for the quarter ended March 31, 2013, to be incorporated in the Quarterly Report. The Company anticipates that it will file the Quarterly Report no later than the fifth calendar day following the prescribed filing date. About China Teletech Tallahassee, Fla.-based China Teletech Holding, Inc., is a national distributor of prepaid calling cards and integrated mobile phone handsets and a provider of mobile handset value-added services. The Company is an independent qualified corporation that serves as one of the principal distributors of China Telecom, China Unicom, and China Mobile products in Guangzhou City. On June 30, 2012, the Company strategically sold its wholly-owned subsidiary, Guangzhou Global Telecommunication Company Limited ("GGT"), to a third party. GGT was engaged in the trading and distribution of cellular phones and accessories, prepaid calling cards, and rechargeable store-value cards. China Teletech disclosed net income of US$53,542 on US$26.62 million of sales for the year ended Dec. 31, 2012, as compared with a net loss of US$348,124 on US$18.84 million of sales for the year ended Dec. 31, 2011. The Company's balance sheet at Dec. 31, 2012, showed US$2.16 million in total assets, US$1.96 million in total liabilities and US$197,475 in total stockholders' equity. WWC, P.C., in San Mateo, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has incurred substantial losses which raise substantial doubt about its ability to continue as a going concern. CODA HOLDINGS: Government, Creditors Object in Bankruptcy --------------------------------------------------------- Randall Chase, writing for the Associated Press, reported that attorneys for the federal government and unsecured creditors have filed objections to electric car maker CODA Holdings' bankruptcy plans. According to the report, court papers argue that CODA's bankruptcy financing and sale plans unfairly benefit a group of debtors seeking to acquire the company. Lenders led by a Fortress Investment Group affiliate are proposing a credit bid of $25 million to take over the company, the report said. In a credit bid, a lender uses debt it is owed to buy a company's assets, rather than cash. Other objections involve concerns about obligations of the new owners to adhere to federal environmental and vehicle safety laws, and proposed bonuses for top executives and directors at Los Angeles-based CODA, the report related. COLONIAL WAREHOUSE: Court Dismisses Chapter 11 Case --------------------------------------------------- German American Capital Corporation, acting by and through servicer Situs Holdings LLC, won dismissal of the Chapter 11 case of Colonial Warehouse LLC. German American sought dismissal or, in the alternative, conversion of the Debtor's case to chapter 7. Bankruptcy Judge David R. Duncan opted to dismiss, pursuant to a May 21, 2013 Order available at http://is.gd/MWG17Rfrom Leagle.com. Colonial Warehouse LLC filed for Chapter 11 bankruptcy (Bankr. D. S.C. Case No. 13-00662) on Feb. 1, 2013. It owns a certain piece of real property located at 1107-15 Shop Road, Columbia, South Carolina, which has a 258,000 square foot warehouse on it. This is the only real property listed on the Debtor's schedules. R. Geoffrey Levy, Esq., at Levy Law Firm, LLC, serves as counsel to Colonial Warehouse. In its petition, the Debtor estimated under $50,000 in assets and between $1 million to $10 million in debts. The petition was signed by William Maxwell Gregg, sole member. Mr. Gregg also filed a chapter 11 petition (Bankr. D. S.C. Case No. 13-00665) on Feb. 1, 2013. Mr. Gregg has a 100% ownership interest in the Debtor. The Debtor obtained a loan in the original principal amount of $3,900,000 from Branch Banking and Trust Company of South Carolina f/k/a Branch Banking and Trust Company evidenced by a promissory note dated December 16, 2005. Note 1 is secured by, among other things, the Debtor's real property. The Debtor obtained a second loan from BB&T in the original principal amount of $370,500 evidenced by a promissory note dated October 27, 2006. Note 2 is secured by, among other things, Debtor's real property, and encompasses the $3,900,000 that is the subject of Note 1 and increases the total principal amount due on both loans to $4,270,500. The mortgages securing notes 1 and 2 were assigned to German American pursuant to an assignment agreement dated March 29, 2011. The Debtor obtained a third loan in the original principal amount of $480,000 from BB&T evidenced by a promissory note dated August 22, 2008. Note 3 is secured by different real property than that securing Notes 1 and 2. The mortgage securing Note 3 was assigned to German American pursuant to an assignment agreement dated March 29, 2011. All three loans are in default due to the Debtor's failure to pay the outstanding balance on each of them when they matured by their terms on August 22, 2010. German American instituted a civil action related to Notes 1 and 2 in the Court of Common Pleas for Richland County, South Carolina on February 17, 2011, seeking a money judgment and decree of foreclosure. On November 19, 2012, the Court of Common Pleas entered an Order of Judgment and Decree of Foreclosure granting German American a decree of foreclosure of the mortgages securing Notes 1 and 2 and a joint and several money judgment against the Debtor and Mr. Gregg, who had personally guaranteed both loans, for the amounts due under Notes 1 and 2. After extended discussions with counsel for the Debtor in an effort to resolve the Foreclosure Order 1 short of a foreclosure sale, German American scheduled sale auctions on January 7, 2013, and February 4, 2013. BB&T instituted a civil action related to Note 3 in the Court of Common Pleas for Richland County, South Carolina on February 17, 2011, seeking a money judgment and decree of foreclosure. On November 19, 2012, the Court of Common Pleas entered an Order of Judgment and Decree of Foreclosure granting German American a decree of foreclosure of the mortgage securing Note 3 and a joint and several money judgment against the Debtor and Mr. Gregg, who had personally guaranteed Note 3, for the amounts due under Note 3. After extended discussions with counsel for Debtor in an effort to resolve Foreclosure Order 2 short of a foreclosure sale, German American scheduled foreclosure sale auctions on January 7, 2013, and February 4, 2013. The Debtor filed its bankruptcy petition on February 1, the last business day before the February 4th foreclosure sale. The only business the Debtor currently conducts is leasing parking spaces on the real property to individuals during the University of South Carolina's college football season. On its statement of financial affairs, the Debtor indicates the parking business generated $40,957.18 of income during 2011. Mr. Gregg testified at the hearing that he did not place the money generated by the parking business in 2012 in the Debtor's accounts but rather placed it in his personal account. In Mr. Gregg's April 5, 2013 periodic report regarding value, operations and profitability of entities in which he holds a substantial or controlling interest filed in his personal case, Mr. Gregg estimates the parking income as $30,000 per year before expenses. Mr. Gregg agreed during his testimony at the hearing that the approximate monthly debt service on the amount owed to German American would be greater than $30,000. Aside from the parking business, Mr. Gregg testified no other business has been conducted on the real property since 2009 or 2010, and the Debtor has had no employees since 2010 or 2011. Mr. Gregg testified that after winding down the previous business in 2009 or 2010, he intended to go into the solar engine business and that he had been trying to start this business for four and a half years, but there was a problem purchasing a necessary patent. He also stated that the Debtor would be in the solar business if it could ever get the patent and that negotiations to obtain the patent had been ongoing for four and a half to five years. When asked whether there was hope for the solar business, Mr. Gregg testified his partner felt like there was hope. Alternatively, Mr. Gregg indicated he planned to build student housing on the real property but does not have financing for construction in place or building permits. He testified a pro- forma with pictures of the building and a feasibility study had been prepared, but no documents were introduced into evidence. Additionally, he stated he had a written commitment for a $60 million land lease, but it lapsed, meaning, he agreed, it is not currently in existence. When asked whether he had a construction loan, Mr. Gregg indicated he would not be able to obtain a loan while he was in bankruptcy so he was doing everything he could to get out of bankruptcy. The Debtor introduced an appraisal into evidence at the hearing that valued the real property at $9.1 million. The Debtor indicates on its amended schedule A that its real property was sold at a tax sale in December 2012. German American filed proofs of claim totaling $6,166,043. The Debtor's other major asset is a trade name it values at $2,500,000 on its schedule B. German American is the only secured creditor listed on the Debtor's schedule D, and its claim is listed at $4,200,451. On schedule E, the Debtor lists a $33,000 unsecured priority claim for the Internal Revenue Service and a $112,672 unsecured priority claim for property taxes owed to Richland County. The Debtor lists no unsecured nonpriority claims on schedule F. COMMUNITY HOME: Will Have Chapter 11 Trustee -------------------------------------------- At the behest of secured creditors Edwards Family Partnership LP (EFP) and Beher Holdings Trust (BHT), the Bankruptcy Court directed the appointment of a Chapter 11 trustee for Community Home Financial Services, Inc. Jim F. Spencer, Jr., Esq., at Watkins & Eager PLLC, representing the secured creditors, tells the Court that EFP and BHT have invested tens of millions of dollars in thousands of mortgage loans managed by Community Home Financial Services. The transactions are structured two ways: 1) by BHT/EFP lendingmoney to CHFS enabling CHFS to purchase mortgage loan portfolios upon which CHFS granted BHT/EFP a perfected security interest; and 2) by BHT/EFP directly purchasing mortgage loan portfolios under joint venture agreements with CHFS. In both scenarios, CHFS serviced the mortgages and collected the monthly payments from mortgagor borrowers. Under the loan documents and the joint venture agreements, Mr. Spencer states that CHFS was required to forward the mortgage proceeds to BHT/EFP; however, CHFS failed to do so. Specifically, beginning in January 2011, CHFS withheld millions of dollars from BHT and EFP which necessitated BHT and EFP filing an emergency motion to appoint a receiver for CHFS. On May 23, 2102, after two days of trial before U.S. District Judge Carlton Reeves, at which Butch Dickson, the principal of CHFS testified that he had taken millions of dollars in loan payments from both the loan transaction and the joint ventures and diverted the payments for other purposes, CHFS filed bankruptcy. Post bankruptcy, Mr. Spencer argues that CHFS has demonstrated it cannot be trusted to run its business as a debtor in possession. It continues to play "hide the ball" with its collections on the loans it is servicing on a post petition basis. It has failed to explain what happened to thousands of dollars it had two days before bankruptcy, which the district court enjoined it from spending. More importantly, CHFS is servicing loans without a license, which is prohibited by Mississippi law. Mr. Spencer argues a trustee is necessary to protect the assets of the estate from further dissipation, and that a trustee is in the best interest of all creditors. Mr. Spencer notes the Debtor's current management is the same management that operated CHFS on a pre-petition basis. Its management has engaged in pre- and post- petition misconduct which justifies the appointment of a Chapter 11 trustee. Mr. Spencer submits that CHFS's pre-petition misconduct alone justifies the appointment of a trustee. CHFS admits it has diverted $2.3 million of BHT and EFP's cash collateral to insiders, most of which was diverted less than 10 days prior to filing this bankruptcy case. CHFS describes this diversion of funds as "loans;" however, competent management does not divert funds from its creditor and make loans to insiders at a time when it has been sued by that creditor for non-payment of promissory notes totaling in excess of $18 million. Competent management does not make "loans" to insiders two days before a scheduled trial on a motion to appoint a receiver over the company. Post- petition, CHFS has not compiled with this Court's interim order that was designed to protect not only CHFS's single largest creditor but all other creditors. When considered together, Mr. Spencer says, they demonstrate that the appointment of a Chapter 11 trustee is required. Community Home Financial Services, Inc., filed a Chapter 11 petition (Bankr. S.D. Miss. Case No. 12-01703) on May 23, 2012. Community Home Financial is a specialty finance company located in Jackson, Mississippi, providing contractors with financing for their customers. CHFS operates from one central location providing financing through its dealer network throughout 25 states, Alabama, Delaware, and Tennessee. The Debtor scheduled $44,890,581 in total assets and $30,270,271 in total liabilities. Judge Edward Ellington presides over the case. COMPREHENSIVE CARE: Delays Form 10-Q for First Quarter ------------------------------------------------------ Comprehensive Care Corporation requires additional time to finalize the financial statements to be included in the Form 10-Q. As a result, the Company was not able to file its Form 10-Q, which will be filed as soon as possible and in no event later than the fifth calendar day following the latest prescribed due date for that report. The Company anticipates a significant reduction in the Company's total operating revenues due to the previously announced expiration of the Company's major Puerto Rico contract. The Company also anticipates a significant reduction in total expenses in response to the aforementioned Puerto Rico contract expiration. As a result, the Company anticipates a net loss for the quarter ended March 31, 2013, compared to net income the Company reported for the quarter ended March 31, 2012. However the Company is not able to quantify the amount of the net loss pending the completion of the Company's quarterly financial review. About Comprehensive Care Tampa, Fla.-based Comprehensive Care Corporation provides managed care services in the behavioral health, substance abuse, and psychotropic pharmacy management fields. Comprehensive Care disclosed a net loss attributable to common stockholders of $6.99 million in 2012, as compared with a net loss attributable to common stockholders of $14.08 million in 2011. The Company's balance sheet at Dec. 31, 2012, showed $6.12 million in total assets, $29.06 million in total liabilities and a $22.94 million total stockholders' deficiency. Mayer Hoffman McCann P.C., in Clearwater, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has suffered recurring losses from operations and has not generated sufficient cash flows from operations to fund its working capital requirements. This raises substantial doubt about the Company's ability to continue as a going concern. COTTON & WESTERN: Board Approves Plan of Reorganization ------------------------------------------------------- Cotton & Western Mining, Inc. announced effective May 23, 2013, that the Board and the majority shareholders of Cotton & Western Mining, Inc. have approved a Plan of Reorganization. The primary considerations behind the Plan were/are as follows: The sole revenue generating asset of CWRN (pinksheets:CWRN) consists of a wholly owned foreign (Mexican) operating Subsidiary, Panamerican Minerals Ventures S.A. de C.V.(PMV), which was held in trust for CWRN and its shareholders by Robert L. Cotton and Sharon Vasquez. Due to a severe lack of Operating Capital, PMV was forced to cease mining operations in October of 2012, and had amassed unpaid debts in excess of $2.0 Million USD. Furthermore, PMV is a Defendant in various legal proceedings in Mexico, the loss of any of which would force PMV to declare bankruptcy. In all, PMV required on the order of $5.0 Million USD in financing in order to allow it to resume operations. As CWRN was/ is unable to provide this financing, and in order to preserve any value for CWRN's Shareholders, the Board believed it had to act immediately. After careful consideration of all the options open to it, the Board of CWRN has adopted a Plan of Reorganization under which it spins off, pro rata to shareholders, a newly formed subsidiary, Kiliwa Mining Group, US, Inc. (KMG) which will hold the stock of the Mexican subsidiary mining Company Panamerican Minerals S.A. de C.V. This will be accomplished via a dividend consisting of the shares of the wholly owned subsidiary KMG, pro rata, issued to all of the shareholders of CWRN, as of an effective date within 60 days hereof, on a 1 KMG share for each 1,000 CWRN shares basis, as part of the Plan of Reorganization on a record date to be determined in accordance with Notice requirements of CUSIP, DTC, and FINRA. Said KMG shares shall be held, in trust, by the Escrow Agent (transfer agent) pending effectiveness of a registration statement under the Securities Act of 1933. The Board's actions have already resulted in sufficient financial relief having been extended to allow PMV to avoid bankruptcy and the loss of its equipment, while retiring a significant portion of its outstanding payables. Furthermore, on May 19, 2013, PMV successfully shipped 68,069 Tons of Iron Ore from Ensenada aboard a Panamax Bulker (a first for Baja California minerals), of which 45,000 Tons were that material previously sold but quarantined by the Customs authorities and only recently released, plus 23,000 Tons of other inventory. The Board believes that their actions will allow sufficient capitalization to allow sustainable operations under KMG's new management team. Please note that neither Robert Cotton nor Sharon Vazquez is associated with the project any longer, nor do either of them either own or control any shares of any of the aforementioned entities. The Bylaws of the Corporation have also been amended to add the following provisions: a) Pursuant to NRS 78.378, the Corporation hereby declares that the application of the "Acquisition of a Controlling Interest" provisions of Nevada Revised Statutes 78.378 to 78.3793, inclusive, do not apply to the corporation or to the acquisition of controlling interest in the corporation; and b) Further, pursuant to NRS 78.434(3), the Corporation hereby elects not to be governed by the "Interested Stockholders" provisions of Nevada Revised Statutes 78.411 to 78.444, inclusive. Cotton & Western Mining, Inc. -- http://www.cottonwestern.com-- is an iron ore mining company, engages in the production and sale of iron ore. It provides raw crude iron ore products to Asia Pacific Steel Manufacturing Sector. Cotton & Western Mining, Inc. is headquartered in Richmond, Texas with an additional office in Mexico. CST GROUP: Can't Use Cash Collateral; Grosvenor Wins Stay Relief ---------------------------------------------------------------- Chief Bankruptcy Judge Howard R. Tallman denied CST Group Inc.'s request to use cash collateral absent consent of Grosvenor Enterprises Inc., which holds a security interest in all of the Debtor's assets, including its cash. Instead, Judge Tallman granted the motions filed by GEI (i) for relief from the automatic stay and (2) to prohibit the Debtor's use of property including cash collateral. On Sept. 1, 2011, CST Group purchased the assets of Greenfields Sports Bar, Inc. Prior to the sale, Greenfields Sports Bar, Inc., operated a pool hall and sports bar located in Lakewood, Colorado. The Debtor has continued the operation of the business. Subsequent to the sale, because Greenfields Sports Bar, Inc., sold its name as part of the transaction, it changed its corporate name to Grosvenor Enterprises, Inc. The Debtor paid a purchase price of $302,000 for the business assets in the form of a $90,000 cash down payment and a promissory note -- now payable to GEI -- in the face amount of $212,000. The Note carries interest at a variable rate of 3% over prime. Payments are amortized over 10 years but the Note is payable in full in 5 years. The current non-default monthly payment is just over $2,700. The Note is secured by a security agreement granting GEI a lien on all of the Debtor's tangible and intangible assets. The Note is also personally guaranteed by the Debtor's three owners, Shawn McKelvy, Timothy Mitchell and Charles Williamson. Mr. McKelvy and Mr. Mitchell are actively involved in the business. Mr. Williamson continues to be an owner but is no longer involved in management of the business. As part of the sale transaction, the Debtor assumed the lease of the retail space that houses Greenfields. In order to induce the landlord to allow the assumption, GEI's principal, Todd Grosvenor, personally guaranteed payments on the lease for two years following the assumption. The principal amount of the Note includes $12,000, payable at the rate of $500 per month without interest. That amount is intended as compensation for Todd Grosvenor's personal guarantee and is a part of the debt subject to GEI's lien. On March 15, 2013, GEI filed its Motion for Relief from Stay and its Cash Collateral Motion. Proofs of claim filed in the case reveal substantial claims by taxing authorities. Colorado Department of Revenue has filed a secured tax claim of $17,893.33 on account of unpaid sales taxes from June through December 2012. The Internal Revenue Service has filed a claim in the total amount of $72,106.79. Its claim includes a secured claim for $44,287.75 on account of unpaid social security withholding and a priority unsecured claim of $25,170.57 on account of unpaid social security withholding and federal unemployment taxes. The remaining $2,648.47 general unsecured claim is for penalties. The Debtor's principals admit to a lack of experience in the operation of a business and claim to have gotten bad guidance from advisors that led to their problems, at least in part. The Debtor has put together a budget and a plan worksheet. Taken at face value, the budget shows the Debtor's revenues exceeding expenses by $5,292.00 monthly. The Debtor would fund its plan with that excess. The plan would pay the tax claims in full over 5 years; it would pay GEI the value of its collateral as a secured claim, amortized over 5 years at 4.5% interest; and it would pay the remainder of GEI's claim as unsecured. On its schedules, the Debtor valued GEI's collateral at $94,421.14. GEI's expert witness valued the Debtor's equipment at $38,994.50. That figure represents an auction value for the equipment only and does not account for GEI's security interest in food inventory, liquor inventory, or intellectual property. Post-petition operations have been unprofitable. In February 2013, the business showed an operating loss of $12,529.00. In March 2013, the business showed an operating loss of $29,953.00. No taxes have been remitted to taxing authorities post-petition. The February operating report shows new total tax liability accruals of $8,762.98; for March, the operating report shows new tax accruals for the month of $16,762.00. In approximately one and one-half months of post-petition operations the Debtor has incurred over $25,000 of new unpaid tax liability. The losses reflected in the Debtor's operating reports were sustained while making no payment to the Debtor's secured creditor. The evidence before the Court is that the Debtor is losing money in its monthly operations and it has been unable to pay its post- petition tax obligations. The Debtor has used GEI's cash collateral without seeking GEI's consent or leave of Court. Notwithstanding its use of GEI's cash collateral, the Debtor has not even been able to pay its normal operating expenses because it is continuing to accrue unpaid tax liabilities. Under the circumstances of this case, with the Debtor's current management in place, GEI's interest in its collateral continues to decline. Absent GEI's consent, the Debtor's continued use of GEI's cash collateral cannot be justified. The Debtor argues that it has offered adequate protection to GEI in the form of periodic payments in the amount of $2,600 per month. But the Court has found the Debtor's offer of adequate protection to be illusory because the preponderance of the evidence persuades the Court that the Debtor lacks the ability to make the promised adequate protection payment to GEI. "This case highlights the tension between the desire of the bankruptcy courts to afford a reasonable opportunity to a debtor to reorganize its affairs under the Bankruptcy Code and the necessity to insure that the interest of the business's secured creditors are not eroded during that reorganization process," Judge Tallman said. The Court notes that GEI holds a security interest in all of the Debtor's assets. The primary tangible asset is the Debtor's business equipment. That equipment includes generally kitchen and bar equipment, bar stools, tables and chairs, pool tables and poker tables. The evidence in this case is that the auction value of the Debtor's equipment is approximately $38,994.50. GEI's evidence is that the principal balance due on its Note is just over $185,000.00 and that the last payment received on that obligation was in November of 2012. GEI is undersecured and, thus, not protected by an equity cushion. A copy of the Court's May 22, 2013 Order is available at http://is.gd/A1e69efrom Leagle.com. CST Group, Inc., dba Greenfields Sports Bar, Inc., commenced chapter 11 proceedings (Bankr. D. Colo. Case No. 13-11894) on February 12, 2013, listing under $1 million in both assets and liabilities. Aaron J. Conrardy, Esq., at Sender Wasserman Wadsworth, P.C., represents the Debtor. D & L ENERGY: Walter Haverfield Approved as Environmental Counsel ----------------------------------------------------------------- The Bankruptcy Court authorized D & L Energy, Inc., et al., to employ Michael A. Cyphert and the law firm of Walter|Haverfield LLP as special counsel. As reported by the Troubled Company Reporter on April 30, 2013, Walter Haverfield will represent the Debtors in matters unrelated to the pending bankruptcies and specifically for environmental law issues and matters stemming therefrom. The firm will, among other things, advise and represent the Debtors with respect to general environmental law issues that may arise with respect to Debtors' oil and natural gas business, including but not limited to issues involving the federal and state environmental protection agencies and the Ohio Department of Natural Resources (the "ODNR"). The Debtors have agreed to pay Michael Cyphert of Walter Haverfield $420 per hour. To the best of the Debtors' knowledge, Walter Haverfield is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About D&L Energy D & L Energy has been involved in a number of joint ventures and limited partnerships that drill, own, and operate conventional oil and gas wells throughout Northeast Ohio and Northwest Pennsylvania. D&L has also been involved in the drilling, construction, operation and ownership of saltwater injection wells in the State of Ohio. D&L has also been involved in marketing and selling the "deep rights" to its oil and gas leases. In early 2013, the then-principal of D&L, Ben Lupo, was accused of violating the U.S. Clean Water Act by allegedly instructing agents/employees of a separate entity to dump waste water in an improper manner. As a result of Mr. Lupo's alleged actions, the Debtors were forced to incur substantial clean up costs. D & L Energy, based in Youngstown, Ohio, and affiliate Petroflow, Inc., filed for Chapter 11 bankruptcy (Bankr. N.D. Ohio Lead Case No. 13-40813) on April 16, 2013. Judge Kay Woods oversees the case. Kathryn A. Belfance, Esq., at Roderick Linton Belfance, LLP, serves as the Debtors' counsel, and Walter Haverfield, LLP, is the environmental counsel. The Debtor disclosed $41,015,677 in assets and $6,185,158 in liabilities as of the Chapter 11 filing. Daniel M. McDermott, U.S. Trustee for Region 9, appointed seven creditors to serve in the Official Committee of Unsecured Creditors. The Committee tapped Squire Sanders (US) LLP as its legal counsel. DUNLAP OIL: Canyon Community Wants Cash Use Limited Until June 12 ----------------------------------------------------------------- Secured creditor and party-in-interest Canyon Community Bank, N.A., asks the Bankruptcy Court to limit Dunlap Oil Company, Inc., et al.'s use of cash collateral until June 12, 2013. The Debtors is seeking Court permission to use cash collateral pending the final confirmation hearing to commence on June 12. The Debtors stated that various interested parties are adequately protected in the case through replacement liens granted under the prior cash collateral orders. According to CCB, it agreed to the Debtors' continued use of cash collateral until the hearing on confirmation of the Debtors' plan, which is scheduled for June 12 - 13, 2013. CCB agreed to the use of cash collateral with these limitations: 1) the Debtors will not use cash collateral to pay legal or other professional expenses; and 2) in all other respects, the Debtors' use of cash collateral will conform strictly to the budget attached to their motion. CCB adds that any requests for additional extensions of the Debtors' authority to use cash collateral must be considered on a month to month basis. About Dunlap Oil Company and Quail Hollow Inn Dunlap Oil Company, Inc., and Quail Hollow Inn, LLC, sought Chapter 11 protection (Bankr. D. Ariz. Case No. 12-23252 and 12-23256) on Oct. 24, 2012. Founded in 1958, Dunlap Oil is a Willcox, Arizona-based operator of 14 gasoline services stations. QOH owns the 89-room outside corridor Best Western Plus Quail Hollow hotel in Willcox. The two companies are owned and operated by the Dunlap family. Judge James M. Marlar presides over the case. John R. Clemency, Esq., and Lindsi M. Weber, Esq., at Gallagher & Kennedy, P.A., serve as the Debtors' counsel. Peritus Commercial Finance LLC serves as financial advisor. Quail Hollow Inn also hired Sally M. Darcy of McEvoy Daniels & Darcy P.C. for the limited purpose of handling any claims, issues, and/or disputes between QHI and Best Western International, Inc. The Debtors' lead counsel, Gallagher & Kennedy, P.A., has a conflict precluding its representation of the Debtor in matters relating to Best Western. QOH declared assets of at least $1 million and debts exceeding $10 million. DOC estimated assets and debts of $10 million to $50 million. The petitions were signed by Theodore Dunlap, president. Ilene J. Lashinsky, the U.S. Trustee for Region 14, has appointed three creditors to serve on an Official Committee of Unsecured Creditor for the Chapter 11 bankruptcy case of Dunlap Oil Company. The Committee tapped Nussbaum Gillis & Dinner, P.C. as its counsel. Pineda Grantor Trust II, successor-in-interest to Compass Bank, is represented by Steven N. Berger, Esq., and Bradley D. Pack, Esq., at Engelman Berger, P.C. Canyon Community Bank NA is represented by Pat P. Lopez III, Esq., Rebecca K. O'Brien, Esq., and Jeffrey G. Baxter, Esq., at Rusing Lopez & Lizardi, P.L.L.C. EAST COAST BROKERS: May 30 Hearing on Case Conversion or Dismissal ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Middle District of Florida continued until May 30, 2013, at 10 a.m., the hearing to consider the motion to dismiss or convert the Chapter 11 case of East Coast Brokers & Packers, Inc., et al., to one under Chapter 7 of the Bankruptcy Code. Guy G. Gebhardt, the Acting U.S. Trustee for Region 21, by and through Denise E. Barnett, requested that the Court enters an order dismissing the cases, or in the alternative, converting the cases based on Debtors' failure to provide proof of insurance coverage on substantial amount of the Debtors' real and personal property and other matters. In a separate docket entry, a June 24 hearing at 9:30 a.m. has been set to consider the motion to appoint a Chapter 11 trustee, or in the alternative, to dismiss case. As reported by the Troubled Company Reporter on May 9, 2013, MLIC Asset Holdings LLC and MLIC CB Holdings LLC have asked the Bankruptcy Court to appoint a Chapter 11 trustee, or dismiss the Debtors' cases. According to the MLIC entities, the Debtors, among other things, had mishandled the potential rents from employees, failed to pay taxes, failed to maintain insurance, has inadequate security regarding the Debtors' personal and real property, and delayed the filing of schedules and reports required under the Bankruptcy Code. About East Coast Brokers & Packers East Coast Brokers & Packers, Inc., along with four related entities, sought Chapter 11 protection (Bankr. M.D. Fla. Case No. 13-02894) in Tampa, Florida, on March 6, 2013. East Coast Brokers & Packers disclosed $12,663,307 in assets and $75,181,975 in liabilities as of the Chapter 11 filing. Scott A. Stichter, Esq., at Stichter, Riedel, Blain & Prosser, in Tampa, serves as counsel to the Debtors. According to the docket, the Chapter 11 plan and disclosure statement are due July 5, 2013. ELBIT VISION: Yossi Ran Appointed as Chairman of the Board ---------------------------------------------------------- http://www.sec.gov/Archives/edgar/data/1011664/000117184313002099/ newsrelease.htm Elbit Vision Systems Ltd. announced that Mr. David Hanuka has resigned from the Company's board of directors and will be replaced by Mr. Yossi Ran, who was elected to the board at a meeting of the shareholders' of the Company, held on April 28, 2013. "It has been a privilege to serve EVS, for the last few years," Mr. Hanuka said. "Now as EVS successfully completed its 'turn around', it is time for me to focus on other opportunities. With its robust and innovative technology, the Company is now well positioned as a leader in its field, and has made progress in developing its Far-Eastern markets, which I believe will make a real contribution to its revenues." Mr. Ran, the incoming Chairman of the Board, stated: "On behalf of the Company's board of directors and the whole EVS family, I would like to thank Mr. Hanuka for his contribution to the Company." Mr. Ran added, "I agreed to return to the Company after a break of several years, since being familiar with the technology and its unique advantages in the fabric industry and recognizing the capabilities of this dedicated and professional team, I believe that EVS is in the right place at the right time for achieving market-leader status. The company's product range will enable its customer to be competitive and cost effective in the global world market." Mr Ran has held senior posts at Elbit Systems and Elron Electronic Industries Ltd., and has served on the boards of directors of several Israeli and overseas companies, including, as the chairman of Plasan-Sasa Ltd. (2000-2007) and of Cabiran (1991) Ltd. (2007- 2011). Mr. Ran also served as the CEO of the Company between the years 1998-2000. About Elbit Vision Based in Caesarea, Israel, Elbit Vision Systems Ltd. (OTC BB: EVSNF.OB) offers a broad portfolio of automatic State-of-the-Art Visual Inspection Systems for both in-line and off-line applications, and process monitoring systems used to improve product quality, safety, and increase production efficiency. For the 12 months ended Dec. 31, 2012, the Company reported income of US$824,000 on US$6.70 million of revenue, as compared with income of US$1.08 million on US$5.64 million of revenue a year ago. The Company's balance sheet at Dec. 31, 2012, showed US$4.20 million in total assets, US$4.48 million in total liabilities and a US$274,000 total shareholders' deficiency. EMPRESAS OMAJEDE: Can Hire Charles A. Cuprill as Counsel -------------------------------------------------------- Empresas Omajede sought and obtained approval from the U.S. Bankruptcy Court to employ Charles A. Cuprill, P.S.C., Law Offices, as counsel. The Debtor said it is not sufficiently familiar with the law to be able to plan and conduct the proceedings without competent legal counsel. Cuprill is a disinterested entity as defined in 11 U.S.C. Sec. 101(14). The Debtor tapped the firm on the basis of a $15,000 retainer, against which the firm will bill on the basis of $350 per hour, plus expenses, for worked performed by Charles A. Cuprill- Hernandez, Esq., $225 per hour for any senior associate, $150 per hour for junior associates, $85 for paralegals, upon application and approval of the Court. About Empresas Omajede Inc. Empresas Omajede Inc., filed a Chapter 11 petition (Bankr. D.P.R. Case No. 12-10113) in Old San Juan, Puerto Rico, on Dec. 21, 2012. Patricia I. Varela, Esq., and the law firm of Charles A. Cuprill, PSC, serve as counsel. Nelson E. Galarza serves as financial advisor. The Debtor disclosed $16,718,614 in assets and $4,935,883 in liabilities in its schedules. The Debtor is a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101(51B) with principal assets located at La Ectronica Building, 1608 Bori St., in San Juan, Puerto Rico. ENOVA SYSTEMS: Delays Form 10-Q for First Quarter ------------------------------------------------- Enova Systems, Inc., was unable to compile certain information required to prepare a complete filing of its quarterly report for the period ended March 31, 2013. As a result, the Company was unable to file its Form 10-Q in a timely manner without unreasonable effort or expense. The Company expects to file its Quarterly Report on Form 10-Q within the extended period. About Enova Systems Torrance, Calif.-based Enova Systems, Inc., engages in the development, design and production of proprietary, power train systems and related components for electric and hybrid electric buses and medium and heavy duty commercial vehicles. In its audit report on the consolidated financial statements for the year ended Dec. 31, 2012, PMB Helin Donovan, LLP, in San Francisco, California, expressed substantial doubt about Enova Systems' ability to continue as a going concern, citing the Company's significant recurring losses and accumulated deficit. The Company reported a net loss of $8.2 million on $1.1 million of revenues in 2012, compared with a net loss of $7.0 million on $6.6 million of revenues in 2011. The Company's balance sheet at Dec. 31, 2012, showed $3.1 million in total assets, $5.7 million in total liabilities, and a stockholders' deficit of $2.6 million. FIRST CONNECTICUT: June 3 Hearing on Motion to Use Cash Collateral ------------------------------------------------------------------ The U.S. Bankruptcy Court for the District of New Jersey will convene a hearing on June 3, 2013, at 10 a.m., to consider First Connecticut Holding Group, LLC IV's motion for use of cash collateral. First Connecticut Holding Group, L.L.C. IV filed a Chapter 11 petition (Bankr. D.N.J. Case No. 13-13090) on Feb. 15, 2013, in Newark, New Jersey. Lorraine Mocco signed the petition as managing member. The Debtor's scheduled assets were $12,287,218 and scheduled liabilities were $68,655,579. Judge Donald H. Steckroth presides over the case. Donald W. Clarke at Wasserman, Jurista & Stolz, P.C., represents the Debtor. FIRST STREET HOLDINGS: Withdraws Bid to Employ Collier Int'l ------------------------------------------------------------ First Street Holdings NV, LLC, et al., have withdrawn a motion to employ Collier International as real estate broker. As reported by the Troubled Company Reporter on March 22, 2013, the Debtors seek to tap Colliers to assist in the sale of the Debtors' interest with respect to real property located at the Northwest corner of First Street and Mission Street, San Francisco, California with the common addresses: 50 First Street, 62 First Street, 78 First Street, 88 First Street, and 512, 516 and 526 Mission Street, San Francisco, California. The Broker was to be paid a commission of 0.5% of the gross sales price of the First and Mission Project, whether it is sold with or without the involvement of another licensed real estate broker as procuring agent of the purchaser. The Debtors said in court papers that Colliers and its brokers and agents are disinterested persons within the meaning of Bankruptcy Code Sections 101(24) and 327. About First Street Holdings NV First Street Holdings NV, LLC, and Lydian SF Holdings, LLC, filed for Chapter 11 bankruptcy (Bankr. N.D. Calif. Case Nos. 11-49300 and 11-49301) on Aug. 30, 2011, before Judge Roger L. Efremsky. Debtor-affiliates 78 First Street, LLC, 88 First Street LLC, 518 Mission, LLC, First/Jessie LLC, JP Capital, LLC, Peninsula Towers LLC, and Sixty-Two First Street LLC (Bankr. N.D. Calif. Case Nos. 11-70224, 11-70228,, 11-70229, 11-70231, 11-70232, 11-70233 and 11-70234) filed for Chapter 11 bankruptcy on Sept. 23, 2011. Colliers Parrish International Inc. serves as appraiser to value certain real properties and other assets held by the Debtors. The cases are jointly administered under Lead Case No. 11-49300. Investor David Choo is associated with CMR Capital, LLC, the manager of the Debtors. Debtors First Street Holdings NV, LLC, Lydian SF Holdings, LLC, 78 First Street, LLC, 88 First Street, LLC, 518 Mission, LLC, First/Jessie, LLC, Sixty-two First Street, LLC, Peninsula Towers, LLC, and JP Capital, LLC; and David Choo, individually, filed a combined joint plan and disclosure statement with the Bankruptcy Court. The Joint Plan, dated Nov. 29, 2011, provided for the payment of all of their secured, administrative, priority and general unsecured claims in full. Interests in the Debtors would be retained without modification. In December 2011, the bankruptcy court held that the First Street Parties had not proven that they had a reasonable possibility of an effective reorganization within a reasonable time. The court noted the proposed plan likely qualified as a negative amortization plan, which would be difficult to confirm under the best of circumstances. The court also noted that the Properties as of the time of the hearing did not generate enough monthly rents to pay monthly operating expenses and property taxes. The court also doubted that the First Street Parties could raise sufficient plan funding, as they had proposed, by renting out additional available space in the buildings on the Properties. FLORIDA GAMING: Delays Form 10-Q for First Quarter -------------------------------------------------- Florida Gaming Corporation was not able to file its quarterly report on Form 10-Q for the period ended March 31, 2013, within the prescribed deadline. Florida Gaming's management and auditors are completing their review of financial and other information, and they anticipate that they will complete the review and filing within the five day period. About Florida Gaming Florida Gaming Corporation operates live Jai Alai games at frontons in Ft. Pierce, and Miami, Florida through its Florida Gaming Centers, Inc. subsidiary. The Company also conducts intertrack wagering (ITW) on jai alai, horse racing and dog racing from its facilities. Poker is played at the Miami and Ft. Pierce Jai-Alai, and dominoes are played at the Miami Jai-Alai. In addition, the Company operates Tara Club Estates, Inc., a residential real estate development located near Atlanta in Walton County, Georgia. Approximately 46.2% of the Company's common stock is controlled by the Company's Chairman and CEO either directly or beneficially through his ownership of Freedom Holding, Inc. The Company is based in Miami, Florida. Florida Gaming disclosed a net loss of $22.69 million in 2012, as compared with a net loss of $21.76 million in 2011. The Company's balance sheet at Dec. 31, 2012, showed $75.09 million in total assets, $125.48 million in total liabilities and $50.39 million total stockholders' deficiency. Morrison, Brown, Argiz & Farra, LLC, in Miami, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has experienced recurring losses from operations, cash flow deficiencies, and is in default of certain credit facilities, all of which raise substantial doubt about its ability to continue as a going concern. GGW MARKETING: Case Summary & 7 Unsecured Creditors --------------------------------------------------- Debtor: GGW Marketing, LLC c/o GGW Brands, LLC, as manager & member Attn: R. Todd Neilson, ch. 11 trustee 10940 Wilshire Boulevard, Suite 1000 Los Angeles, CA 90024 Bankruptcy Case No.: 13-23452 Chapter 11 Petition Date: May 22, 2013 Court: United States Bankruptcy Court Central District Of California (Los Angeles) Debtor's Counsel: Martin R. Barash, Esq. Matthew Heyn, Esq. KLEE, TUCHIN, BOGDANOFF AND STERN, LLP 1999 Avenue of the Stars, 39rd Floor Los Angeles, CA 90067 Tel: (310) 407-4000 Fax: (310) 407-9090 E-mail: mbarash@ktbslaw.com mheyn@ktbslaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 A copy of the Company's list of its seven largest unsecured creditors is available for free at http://bankrupt.com/misc/cacb13-23452.pdf The petition was signed by R. Todd Neilson, Chapter 11 Trustee for GGW Brands, LLC, as manager and member. Affiliates that previously sought Chapter 11 protection: Petition Debtor Case No. Date ------ -------- ---- GGW Brands, LLC 13-15130 02/27/13 GGW Direct, LLC 13-15130 02/27/13 GGW Events, LLC 13-15130 02/27/13 GIBRALTAR KENTUCKY: Facing Chapter 7 Conversion ----------------------------------------------- The Hon. Erik P. Kimball of the U.S. Bankruptcy Court for the Southern District of Florida in April denied Gibraltar Kentucky Development LLC's motion for partial relief from an order on the motion to convert the Debtor's Chapter 11 case. In this relation, the Court ordered that: -- on April 26, 2013, the Debtor's counsel, David L. Merrill, was to file a notice with the Court stating that he is holding in his attorney trust account the sum of $275,000 pursuant to the order on the motion to convert and the extension order; and -- if Mr. Merrill failed to timely file the notice, the Court will find that there is a continuing loss to the estate and the absence of a reasonable likelihood of rehabilitation of the Debtor, and, without further notice or hearing, the Court will enter an order granting the motion to convert the case to one under Chapter 7. According to the Debtor's case docket, the Debtor's counsel filed on April 26 a certification of funds held in trust. Objections to the Debtor's motion were filed by Guy Lindley; Frances Lindley; Kentucky Central Energy Partners, LLC; Kentucky Central Energy Partners; B&G Energy; and Sun Kentucky Central Energy Co. About Gibraltar Kentucky Gibraltar Kentucky Development, LLC, filed a Chapter 11 bankruptcy petition (Bankr. S.D. Fla. Case No. 12-13289) on Feb. 10, 2012, in West Palm Beach, Florida. Palm Beach Gardens-based Gibraltar Kentucky says that it is not a small business debtor under 11 U.S.C. Sec. 101(51D). Documents attached to the petition indicate that McCaugh Energy LLC owns 42.15% of the "fee simple" securities. The Chapter 11 case was converted to one under Chapter 7. According to the Web site http://www.gibraltarenergygroup.com/ Gibraltar Kentucky is part of the Gibraltar Energy Group. The various companies of the group are involved with the drilling, development and production of oil and gas, as well as, the sale of coal and timber. Offices are in Michigan and Florida and investments are in Michigan and Kentucky. Judge Erik P. Kimball presides over the case. The Debtor disclosed $175,395,449 in assets and $1,193,516 in liabilities as of the Chapter 11 filing. The petition was signed by Bill Boyd, as manager. Steven R. Turner, Trustee for Region 21, has informed the Court that, until further notice, he will not appoint a committee of creditors. GLOBAL ARENA: Delays Form 10-Q for First Quarter ------------------------------------------------ Global Arena Holding, Inc., was not able to timely complete its financial statements for the three months ended March 31, 2013, to electronically file the required Form 10-Q. About Global Arena New York, N.Y.-based Global Arena Holding, Inc., formerly Global Arena Holding Subsidiary Corp., was formed in February 2009, in the state of Delaware. The Company is a financial services firm that services the financial community through its subsidiaries as follows: Global Arena Investment Management LLC provides investment advisory services to its clients. GAIM is registered with the Securities and Exchange Commission as an investment advisor and clears all of its business through Fidelity Advisors, its correspondent broker. Global Arena Commodities Corp. provides commodities brokerage services and earns commissions. Global Arena Trading Advisors, LLC provides futures advisory services and earns fees. GATA is registered with the National Futures Association (NFA) as a commodities trading advisor. Lillybell Entertainment, LLC provides finance services to the entertainment industry. Global Arena disclosed a net loss attributable to common stockholders of $2.44 million in 2012, as compared with a net loss attributable to common stockholders of $2.75 million in 2011. The Company's balance sheet at Dec. 31, 2012, showed $1.28 million in total assets, $3.14 million in total liabilities and a $1.86 million total stockholders' deficiency. Wei, Wei & Co., LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has suffered recurring losses since inception, experiences a deficiency of cash flow from operations and has a stockholders' deficiency. These conditions raise substantial doubt about the Company's ability to continue as a going concern. GLOBALSTAR INC: Amends 39.5 Million Shares Resale Prospectus ------------------------------------------------------------ Globalstar, Inc., has amended its registration statement filed with the U.S. Securities and Exchange Commission relating to the disposition from time to time of up to 39,500,000 shares of the Company's voting common stock, which are held or may be held by Terrapin Opportunity, L.P. The Company is not selling any common stock under this prospectus and will not receive any of the proceeds from the sale of shares by Terrapin. The Company's common stock is quoted on the OTCQB under the symbol "GSAT." The last reported sale price of the Company's common stock on the OTCQB on May 13, 2013, was $0.36 per share. A copy of the amended prospectus is available for free at: http://is.gd/3sl3HK About Globalstar Covington, Louisiana-based Globalstar Inc. provides mobile satellite voice and data services. Globalstar offers these services to commercial and recreational users in more than 120 countries around the world. The Company's products include mobile and fixed satellite telephones, simplex and duplex satellite data modems and flexible service packages. GUIDED THERAPEUTICS: Incurs $1.8-Mil. Net Loss in First Quarter --------------------------------------------------------------- Guided Therapeutics, Inc., reported a net loss of $1.81 million on $167,000 of contract and grant revenue for the three months ended March 31, 2013, as compared with a net loss of $1.01 million on $718,000 of contract and grant revenue for the same period during the prior year. Cash on hand at March 31, 2013, was approximately $1.1 million, as compared to approximately $1.0 million at Dec. 31, 2012. During the first quarter of 2013, the Company received approximately $1.65 million from warrant exercises. Management believes that the Company's anticipated future sales, as well as other funds from partnerships and grants, should be sufficient to support existing operations through the second quarter of 2013. The Company has historically sought additional funding from a variety of sources and will continue to do so. "While we await a response from the FDA regarding LuViva, we continue to actively promote the product in key international markets," said Mark L. Faupel, Ph.D., chief executive officer and president of Guided Therapeutics. "Following a major medical meeting in the United Kingdom, where LuViva was presented by a key opinion leader to 400 top gynecology health professionals, this week we are supporting our distributor in Turkey at a six-country Mediterranean congress. Next month, we will be in Canada at an important scientific meeting supporting our distributor there. After having recently received review board approval, we are expected to begin Canadian marketing clinical studies that are sponsored in part by the National Cancer Institute." A copy of the press release is available for free at: http://is.gd/N3LPbL Exhibits Guided Therapeutics has amended its quarterly report on Form 10-Q for the quarterly period ended March 31, 2013, filed with the Securities and Exchange Commission on May 14, 2013, solely to file Exhibit 10.1 ("Termination Agreement re: Spectroscopic Technology Development Collaboration") which was inadvertently omitted from the initial filing. No other changes have been made to the Form 10-Q. A copy of the Exhibit is available for free at http://is.gd/WvVad7 About Guided Therapeutics Guided Therapeutics, Inc. (OTC BB and OTC QB: GTHP) -- http://www.guidedinc.com/-- is developing a rapid and painless test for the early detection of disease that leads to cervical cancer. The technology is designed to provide an objective result at the point of care, thereby improving the management of cervical disease. Unlike Pap and HPV tests, the device does not require a painful tissue sample and results are known immediately. GT has also entered into a partnership with Konica Minolta Opto to develop a non-invasive test for Barrett's Esophagus using the LightTouch technology platform. Guided Therapeutics disclosed a net loss of $4.35 million on $3.33 million of contract and grant revenue for the year ended Dec. 31, 2012, as compared with a net loss of $6.64 million on $3.59 million of contract and grant revenue in 2011. UHY LLP, in Sterling Heights, Michigan, issued a "going concern" qualification on the Company's consolidated financial statements for the year ended Dec. 31, 2012, citing recurring losses from operations and accumulated deficit that raise substantial doubt about its ability to continue as a going concern. The Company's balance sheet at March 31, 2013, showed $3.58 million in total assets, $1.72 million in total liabilities, and $1.86 million in total stockholders' equity. Bankruptcy Warning "The Company's capital-raising efforts are ongoing. If sufficient capital cannot be raised during the second quarter of 2013, the Company has plans to curtail operations by reducing discretionary spending and staffing levels, and attempting to operate by only pursuing activities for which it has external financial support, such as under the Konica Minolta license agreement and additional NCI, NHI or other grant funding. However, there can be no assurance that such external financial support will be sufficient to maintain even limited operations or that the Company will be able to raise additional funds on acceptable terms, or at all. In such a case, the Company might be required to enter into unfavorable agreements or, if that is not possible, be unable to continue operations, and to the extent practicable, liquidate and/or file for bankruptcy protection," according to the Company's quarterly report for the period ended March 31, 2013. HUDSON & KEYSE: Former Managers Not Entitled to Fees & Expenses --------------------------------------------------------------- An Ohio district court denied a motion seeking an order to require Hudson & Keyse LLC's Chapter 7 Trustee to advance fees and expenses incurred by the Debtor's former management committee members. Hudson & Keyse was in the business of debt buying/collecting. Pursuant to a 2009 Operating Agreement, a management committee had full authority to control the affairs of the company. The company filed for bankruptcy under Chapter 7 on Sept. 7, 2010. Waldemar J. Wojcik was appointed as trustee. The complaint captioned WALDEMAR J. WOJCIK, as Chapter 7 Trustee of Hudson & Keyse, LLC v. HUDSON FUNDING LLC, ET AL., Case No. 1:12CV2960 (N.D. Ohio), seeks to avoid and recover transfers made to the Defendants as well as other amounts. The Complaint also seeks to recover damages from George Anthony Skestos, George A. Skestos, Ellen Hardymon, John F. Havens, and D. Scott Clarke, who comprised the H&K Management Committee for alleged violations of fiduciary duty. The Complaint further alleges that in August to September 2009, the Debtor sold debt receivables to Hudson Funding LLC for the same amount it purchased the receivables from HSBC. Because Funding could not legally collect debts, the Debtor and Funding entered into a collection agreement where the Debtor agreed to perform collection work for the benefit of Funding. In January 2013, the Individual Defendants sought an advancement of fees and expenses saying that it is required under the Operating Agreement. On review, District Judge Christopher A. Boyko found that the Individual Defendants all resigned approximately one year prior to the Debtor's bankruptcy filing and that the Operating Agreement and Collection Agreements were all prepetition agreements that did not involve the bankruptcy estate. Thus, the judge opined, the Defendants cannot claim that the contractual obligation to advance fees and indemnify arose from a transaction with the bankruptcy estate nor did these obligations provide a benefit to the bankruptcy estate. Furthermore, the Defendants have failed to meet their burden to show their claims for advancement of fees and indemnification by a preponderance of evidence, Judge Boyko added. A copy of Judge Boyko's May 13, 2013 Opinion and Order is available at http://is.gd/cpxWCgfrom Leagle.com. ICEWEB INC: Amends First Quarter Form 10-Q ------------------------------------------ IceWEB, Inc., filed its quarterly report on Form 10-Q for the period ended March 31, 2013, with the U.S. Securities and Exchange Commission on May 15, 2013. The Original Filing inadvertently included the certifications filed or furnished pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 as part of the body of the report instead as separate exhibits. The Company is filing Amendment No. 1 to the Form 10-Q for the period ended March 31, 2013, to correct this ministerial error. A copy of the Amended Form 10-Q is available for free at: http://is.gd/GqZruw About IceWEB Sterling, Va.-based IceWEB, Inc., manufactures and markets purpose-built appliances, network and cloud-attached storage solutions and delivers on-line cloud computing application services. The Company's customer base includes U.S. government agencies, enterprise companies, and small to medium sized businesses (SMB). D'Arelli Pruzansky, P.A., in Boca Raton, Florida, expressed substantial doubt about IceWEB's ability to continue as a going concern. The independent auditors noted that the Company had net losses of $6,485,048 for the year ended Sept. 30, 2012. The Company reported a net loss of $6.5 million on $2.6 million of sales in fiscal 2012, compared with a net loss of $4.7 million on $2.7 million of sales in fiscal 2011. The Company's balance sheet at Dec. 31, 2012, showed $1.78 million in total assets, $3.46 million in total liabilities and a $1.68 million total stockholders' deficit. ID PERFUMES: Delays Form 10-Q for First Quarter ----------------------------------------------- ID Perfumes, Inc., said it requires additional time to prepare and review the quarterly report for the period ended March 31, 2013. That delay could not be eliminated by the Company without unreasonable effort and expense. In accordance with Rule 12b-25 of the Securities Exchange Act of 1934, the Company will file its Form 10-Q no later than five calendar day following the prescribed due date. About ID Perfumes ID Perfumes, Inc., manufactures, markets, and distributes fragrances and fragrance related products. The company produces and distributes its fragrance products under license agreements with Selena Gomez and Adam Levine. ID Perfumes, Inc., sells it products to department stores, perfumeries, specialty retailers, mass-market retailers, and the United States and international wholesalers and distributors. It primarily has operations in the United States, Latin America, and Canada. The company was formerly known as Adrenalina and changed its name to ID Perfumes, Inc., in February 2013. ID Perfumes, Inc., was founded in 2004 and is headquartered in Hallandale Beach, Florida. Goldstein Schechter Koch, P.A., in Coral Gables, Florida, expressed substantial doubt about Adrenalina's ability to continue as a going concern. The independent auditors noted that the Company incurred a net loss of approximately $12,000,000 and $5,300,000 in 2008 and 2007. Additionally, the Company has an accumulated deficit of approximately $20,900,000 and $8,908,000 at Dec. 31, 2008, and 2007, and is currently unable to generate sufficient cash flow to fund current operations. The Company reported a net loss of $12.01 million in 2008, compared with a net loss of $5.26 million in 2007. The Company's balance sheet at Dec. 31, 2008, showed $10.09 million in total assets, $10.90 million in total liabilities, and a stockholders' deficit of $810,752. IMPLANT SCIENCES: Expects to Report $5.3 Million Net Loss in Q1 --------------------------------------------------------------- Implant Sciences Corporation has completed its review and preparation of the financial statements and footnotes to be contained in its quarterly report on Form 10-Q for the period ended March 31, 2013, which has been reviewed by the Company's independent registered public accounting firm. However, due to technical issues, the Company was unable, without unreasonable effort and expense, to prepare its filing so as to include the Interactive Data Files formatted in XBRL ("Extensible Business Reporting Language") with tagging of the notes to the condensed consolidated financial statements as required by Rule 405 of Regulation S-T. The Company expects to file its Form 10-Q within the prescribed period. The Company anticipates reporting net loss of approximately $5,339,000 on revenues of approximately $1,262,000 for the three months ended March 31, 2013, as compared to a net loss of $3,890,000 on revenues of approximately $686,000 for the corresponding prior year period. For the nine months ended March 31, 2013, the Company anticipates reporting a net loss of approximately $21,810,000 on revenues of approximately $9,615,000 as compared to a net loss of approximately $10,252,000 on revenues of approximately $2,854,000. About Implant Sciences Implant Sciences Corporation (OBB: IMSC.OB) -- http://www.implantsciences.com/-- develops, manufactures and sells sensors and systems for the security, safety and defense (SS&D) industries. Marcum LLP, in Boston, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2012. The independent auditors noted that the Company has had recurring net losses and continues to experience negative cash flows from operations. As of Sept. 25, 2012, the Company's principal obligation to its primary lender was $33,429,000 with accrued interest of $3,146,000. The Company is required to repay all borrowings and accrued interest to this lender on March 31, 2013. These conditions raise substantial doubt about its ability to continue as a going concern. Bankruptcy Warning "Despite our current sales, expense and cash flow projections and $3,562,000 in cash available from our line of credit with DMRJ at December 31, 2012, we will require additional capital in the third quarter of fiscal 2013 to fund operations and continue the development, commercialization and marketing of our products. Our failure to achieve our projections and/or obtain sufficient additional capital on acceptable terms would have a material adverse effect on our liquidity and operations and could require us to file for protection under bankruptcy laws," the Company said in its quarterly report for the period ended Dec. 31, 2012. For the nine months ended March 31, 2013, the Company incurred a net loss of $21.81 million on $9.61 million of revenues, as compared with a net loss of $10.25 million on $2.85 million of revenues for the same period a year ago. The Company's balance sheet at March 31, 2013, showed $5.39 million in total assets, $46.50 million in total liabilities and a $41.11 million total stockholders' deficit. INSPIREMD INC: Reimbursement Coverage for MGuard Coronary EPS ------------------------------------------------------------- InspireMD, Inc., received reimbursement approval for the MGuardTM Coronary Embolic Protection Stent (EPS) from UNIMED, Brazil's largest private health care insurer. Alan Milinazzo, InspireMD's President and CEO said, "Reimbursement in Brazil is a significant achievement that should enable us to expand our presence globally and further penetrate this important market of over 195 million citizens. We are pleased that UNIMED is recognizing MGuard's clinical value in preventing unstable plaque and clots from breaking away and causing further trauma in acute heart attack patients." According to the Brazilian Society of Interventional Cardiology (SBHCI), of the approximately 30,000 Brazilians treated for acute heart attacks each year, roughly one-third experience ST-segment elevation on ECG (STEMI) and require Primary PCI. "This is the first step in a process that is expected to eventually enable doctors to treat patients with acute coronary syndromes, particularly those with acute myocardial infarction who may be at a high risk of distal embolization, with this innovative EPS system that has shown improved procedural outcomes," said Prof. Dr. Alexandre A. Abizaid, Director of Interventional Cardiology at Institute Dante Pazzanese in Sao Paulo, Brazil. UNIMED is the largest cooperative medical system both in Brazil and globally, providing private health insurance to more than 18 million Brazilians. With 38 percent of the Brazilian health plan market, UNIMED has more than 109,000 physicians and 3,097 hospitals in its network, according to Brazil's National Health Insurance Agency (ANS). About InspireMD InspireMD, Inc., was organized in the State of Delaware on Feb. 29, 2008, as Saguaro Resources, Inc., to engage in the acquisition, exploration and development of natural resource properties. On March 28, 2011, the Company changed its name from "Saguaro Resources, Inc." to "InspireMD, Inc." Headquartered in Tel Aviv, Israel, InspireMD, Inc., is a medical device company focusing on the development and commercialization of its proprietary stent platform technology, Mguard. MGuard provides embolic protection in stenting procedures by placing a micron mesh sleeve over a stent. The Company's initial products are marketed for use mainly in patients with acute coronary syndromes, notably acute myocardial infarction (heart attack) and saphenous vein graft coronary interventions (bypass surgery). InspireMD reported a net loss of US$17.59 million on US$5.35 million of revenue for the year ended June 30, 2012, compared with a net loss of US$6.17 million on US$4.67 million of revenue during the prior year. The Company's balance sheet at March 31, 2013, showed $9.79 million in total assets, $13.20 million in total liabilities, and a $3.40 million total capital deficiency. Kesselman & Kesselman, in Tel Aviv, Israel, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2012. The independent auditors noted that the Company has had recurring losses, negative cash flows from operating activities and has significant future commitments that raise substantial doubt about its ability to continue as a going concern. The Company said the following statement in its quarterly report for the period ended Dec. 31, 2012: "The Company has had recurring losses and negative cash flows from operating activities and has significant future commitments. For the six months ended December 31, 2012, the Company had losses of approximately $9.4 million and negative cash flows from operating activities of approximately $5.8 million. The Company's management believes that its financial resources as of December 31, 2012 should enable it to continue funding the negative cash flows from operating activities through the three months ended September 30, 2013. Furthermore, commencing October 2013, the Company's senior secured convertible debentures (the "2012 Convertible Debentures") are subject to a non-contingent redemption option that could require the Company to make a payment of $13.3 million, including accrued interest. Since the Company expects to continue incurring negative cash flows from operations and in light of the cash requirement in connection with the 2012 Convertible Debentures, there is substantial doubt about the Company's ability to continue operating as a going concern. These financial statements include no adjustments of the values of assets and liabilities and the classification thereof, if any, that will apply if the Company is unable to continue operating as a going concern." INVESTORS CAPITAL: Amends List of Top Unsecured Creditors --------------------------------------------------------- Investors Capital Partners II LP submitted to the Court an amended list identifying its 20 largest unsecured creditors. Creditors with the three largest claims are: Entity Nature of Claim Claim Amount ------ --------------- ------------ Investors Capital Fund $688,010 Services II, LLC 138 Wilson Pike Circle Brentwood, TN 37027 Nancy S. Hiatt $181,294 Flood, Bumstead, McCready & McCarthy c/o Ms. Mary Ann McCeady P O Box 331549 Nashville, TN 37203 Andrew L. May $110,644 309 Walnut Dr. Nashville, TN 37205 A copy of the creditors' list is available for free at http://is.gd/z2q7ll About Investors Capital Brentwood, Tennessee-based Investors Capital Partners II, LP and two affiliates sought Chapter 11 protection (Bankr. W.D. Ky. Case Nos. 12-11575 to 11677) in Bowling Green, Kentucky, on Dec. 19, 2012. ICP II estimated assets of at least $10 million and liabilities of less than $10 million. It owns a 35-acre commercial development near Glasgow, Kentucky. The ICP II property is home to a Marquee Cinema, Dollar Tree, and Aaron's Rents and also consists of seven parcels of undeveloped land. Debtor-affiliate Investors Capital Partners I, LP owns multiple parcels of undeveloped land near Nolensville, Tennessee. Investors Land Partners II, LP owns partially developed land, consisting of six adjoining parcels of real property, near Nashville, Tennessee. In court filings, the Debtors said their lenders have attempted to foreclose against the Debtors' assets, and the Debtors have been unable to reach agreements with their lenders that would allow the Debtors to reorganize their debts in an orderly manner; thus, the Debtors have little option except for the development of a joint plan to reorganize operations and restructure debts for the benefit of all creditors and parties in interest. J.C. PENNEY: Incurs $348 Million Net Loss in First Quarter ---------------------------------------------------------- J. C. Penney Company, Inc., reported a net loss of $348 million on $2.63 billion of total net sales for the three months ended May 4, 2013, as compared with a net loss of $163 million on $3.15 billion of total net sales for the three months ended April 28, 2012. The Company's balance sheet at May 4, 2013, showed $10.37 billion in total assets, $7.50 billion in total liabilities and $2.86 billion in stockholders' equity. Myron E. (Mike) Ullman, III, chief executive officer of jcpenney said, "Our objective is to put jcpenney back on a path to profitable growth. To achieve this, over the past five weeks we have taken critical steps to stabilize the business, including improving our balance sheet and ensuring we have our senior leadership in place. With that accomplished, together our team is focused on developing and executing strategies to enable us to reconnect with our customer and improve traffic and sales, while operating with strong financial discipline." Ullman continued, "We are looking forward, not back, and undertaking initiatives to ensure we have a successful future. We are intensely focused on renewing customer excitement and loyalty through a combination of new attractions and long-beloved brands, with a promotional cadence that customers can appreciate and count on. There is a good deal of work ahead, but by listening to our customers and providing the shopping experience they want, we are confident we will deliver for them and improve performance for the benefit of our suppliers, associates and shareholders." A copy of the press release is available for free at: http://is.gd/VqoQse About J.C. Penney Plano, Texas-based J.C. Penney Company, Inc. is one of the U.S.'s largest department store operators with about 1,100 locations in the United States and Puerto Rico. J.C. Penney disclosed a net loss of $985 million in 2012, as compared with a net loss of $152 million in 2011. * * * As reported by the TCR on May 2, 2013, Moody's Investors Service downgraded the long term ratings of J.C. Penney Company, Inc., including its Corporate Family Rating to Caa1 from B3. The downgrade follows JCP's announcement that it had entered into a commitment letter with Goldman Sachs under which Goldman Sachs has committed to provide a $1.75 billion senior secured term loan. Early in March 2013, Standard & Poor's Ratings Services lowered its corporate credit rating on Penney to 'CCC+' from 'B-'. The outlook is negative. At the same time, S&P lowered the issue- level rating on the company's unsecured debt to 'CCC+' from 'B-' and maintained its '3' recovery rating on this debt, indicating S&P's expectation of meaningful (50% to 70%) recovery for debtholders in the event of a payment default. "The downgrade reflects the performance erosion that has accelerated throughout the previous year and seems likely to persist over the next 12 months," explained Standard & Poor's credit analyst David Kuntz. At the same time, Fitch Ratings downgraded the Company's Issuer Default Ratings to 'B-' from 'B'. The Rating Outlook is Negative. The rating downgrades reflect Fitch's concerns that there is a lack of visibility in terms of the Company's ability to stabilize its business in 2013 and beyond after a precipitous decline in revenues leading to negative EBITDA of $270 million in 2012. Penney, Fitch said, will need to tap into additional funding to cover a projected FCF shortfall of $1.3 billion to $1.5 billion in 2013, which could begin to strain its existing sources of liquidity. In February 2013, Penney received a notice of default from a law firm representing more than 50% of its 7.4% Debentures due 2037. The Company has filed a lawsuit in Delaware Chancery Court seeking to block efforts by the bondholder group to declare a default on the 2037 bonds. Penney also asked lawyers at Brown Rudnick LLP to identify the investors they represent. In March 2013, Penney received a letter from bondholders withdrawing and rescinding the Notice of Default. On April 12, 2013, Penney borrowed $850 million out of its $1.85 billion committed revolving credit facility with JPMorgan Chase Bank, N.A., as Administrative Agent, and Wells Fargo Bank, National Association, as LC Agent. Penney said the move was to enhance the Company's financial flexibility and position. JAYHAWK ENERGY: Delays Form 10-Q for First Quarter -------------------------------------------------- Jayhawk Energy, Inc., said its Form 10-Q for the quarter ended March 31, 2013, could not be filed within the prescribed time period due to additional time required to prepare and complete that document. About JayHawk Energy Coeur d'Alene, Idaho-based JayHawk Energy, Inc., is an early stage oil and gas company. The Company's immediate business plan is to focus its efforts on further developing the as yet undeveloped acreage in Southeast Kansas and to expand its oil production on its Crosby (f/k/a Candak), North Dakota properties. Following the financial results for the fiscal year ended Sept. 30, 2012, DeCoria, Maichel and Teague, P.S., in Spokane, Washington, expressed substantial doubt about JayHawk Energy's ability to continue as a going concern, noting that the Company has incurred substantial losses, has negative working capital and has an accumulated deficit. The Company reported a net loss of $4.3 million on $663,229 of total revenue in fiscal 2012 as compared to a net loss of $4.3 million on $363,122 of total revenue in fiscal 2011. The Company's balance sheet at Dec. 31, 2012, showed $1.09 million in total assets, $2.64 million in total liabilities and a $1.55 million total stockholders' deficit. JEH COMPANY: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: JEH Company 2550 Highway 287 N Mansfield, TX 76063-4830 Bankruptcy Case No.: 13-42397 Chapter 11 Petition Date: May 22, 2013 Court: United States Bankruptcy Court Northern District of Texas (Ft. Worth) Judge: Russell F. Nelms Debtors' Counsel: Mark Joseph Petrocchi, Esq. GRIFFITH, JAY & MICHEL, LLP 2200 Forest Park Blvd. Ft. Worth, TX 76110 Tel: (817) 926-2500 Fax: (817) 926-2505 E-mail: mpetrocchi@lawgjm.com 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 James E. Helzer, president. The Debtors did not file its list of their largest unsecured creditors together with the petitions. Affiliate that simultaneously sought Chapter 11 protection: Debtor Case No. ------ -------- JEH Stallion Station, Inc. 13-42398 Assets: $500,001 to $1,000,000 Debts: $1,000,001 to $10,000,000 JEH Leasing Company, Inc. 13-42399 Assets: $500,001 to $1,000,000 Debts: $1,000,001 to $10,000,000 JUMP OIL: Gets Final OK to Use Colonial Pacific Cash Collateral --------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Missouri, last month authorized, on a final basis, Jump Oil Company, Inc.'s continued use of cash collateral which prepetition lender Colonial Pacific Leasing Corporation asserts an interest. As adequate protection from any diminution in value of the lender's collateral, the Debtor will grant Colonial Pacific replacement liens on all of the Debtor's present and after acquired property, and a superpriority administrative expense claim status. Pursuant to the agreement, if the Debtor fails to comply with any of the terms and conditions of the agreed final order, Colonial Pacific may serve upon the Debtor a notice of termination of consent to use of cash collateral. About Jump Oil Company Jump Oil Company owns 42 parcels of real property throughout the state of Missouri, on which gas and service stations are operated by various third-party lessees pursuant to lease agreements with Debtor. The gas stations are Phillips 66 branded stations, pursuant to a branding and licensing agreement. Jump Oil Company filed a Chapter 11 petition (Bankr. E.D.Mo.) on Feb. 14, 2013, in St. Louis, Missouri to sell its gas stations pursuant to 11 U.S.C. Sec. 363. The Debtor disclosed $17,603,456 in assets and $26,276,060 in liabilities as of the Chapter 11 filing. The Debtor has tapped Goldstein & Pressman, P.C. as counsel; HNWC as financial consultants; Matrix Private Equities, Inc. as financial advisor; Mariea Sigmund & Browning, LLC as special counsel; and Wolff & Taylor, PC as accountants. The Debtor's combined indebtedness as of the Petition Date, both secured and unsecured, is $22.5 million. Colonial Pacific Leasing Station is owed $17.9 million secured by a perfected security interest and liens 37 of the gas stations. CRE Venture 2011-1, LLC is owed $716,000 allegedly secured by three of the Debtor's sites. Lindell Bank is owed $347,000 allegedly secured by interest in two of the Debtor's sites. KEMET CORP: Number of Directors Lowered to Eight ------------------------------------------------ Mr. Joseph D. Swann, who is one of nine current directors of KEMET Corporation, informed the Company's Board of Directors on May 11, 2013, that he does not plan to stand for re-election at the Company's Annual Meeting of Stockholders, which is scheduled to occur on July 25, 2013. As a result, the Board has elected to reduce the size of the Company's Board from nine to eight directors, effective immediately following the Annual Meeting. Mr. Swann's decision not to stand for re-election is not the result of any disagreement with the Company, and he will continue to serve as a director through the Annual Meeting. About KEMET KEMET, based in Greenville, South Carolina, is a manufacturer and supplier of passive electronic components, specializing in tantalum, multilayer ceramic, film, solid aluminum, electrolytic, and paper capacitors. KEMET generated revenues of $851 million for the latest 12 months ended Dec. 31, 2012. KEMET's common stock is listed on the NYSE under the symbol "KEM." The Company's balance sheet at Dec. 31, 2012, showed $926.34 million in total assets, $622.52 million in total liabilities and $303.81 million in total stockholders' equity. * * * As reported by the TCR on March 26, 2013, Moody's Investors Service downgraded KEMET Corp.'s Corporate Family Rating to Caa1 from B2 and the Probability of Default Rating to Caa1-PD from B2- PD based on Moody's expectation that KEMET's liquidity will be pressured by maturing liabilities and negative free cash flow due to the interest burden and continued operating losses at the Film and Electrolytic segment. KEMET carries a 'B+' corporate credit rating from Standard & Poor's Ratings Services. LA JOLLA: Presents Corporate Update at The MoneyShow ---------------------------------------------------- La Jolla Pharmaceutical Company announced that George Tidmarsh, M.D., Ph.D., president and chief executive officer presented at the MoneyShow, Caesars Palace in Las Vegas Nevada. The presentation was available to attendees and via live webcast at MoneyShow.com. As part of the presentation, Dr. Tidmarsh presented detailed data on GCS-100 and its positive effect on eGFR in previous clinical studies. Also, new information about the focus and direction of La Jolla for 2013 was presented. A video of the webcasted presentation is available on MoneyShow.com. La Jolla expects to release further data from the recently completed Phase 1 clinical trial in the coming weeks. "Our retrospective analysis of renal function data from previous GCS-100 clinical trials provides solid support for our current program using GCS-100 for the treatment of Chronic Kidney Disease. This analysis shows that many patients who started treatment with reduced renal function experienced a significant improvement on GCS-100 treatment," said George Tidmarsh, M.D., Ph.D., president and chief executive officer of La Jolla. "While not all patients showed an improvement, many of those that did experienced a major improvement. We hope that this effect is confirmed in our upcoming Phase 2 trial." About La Jolla Pharmaceutical San Diego, Cal.-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. 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. For the 12 months ended Dec. 31, 2012, the Company incurred a net loss of $7.73 million, as compared with a net loss of $11.54 million for the 12 months ended Dec. 31, 2011. The Company's balance sheet at March 31, 2013, showed $2.81 million in total assets, $271,000 in total liabilities, all current, and $2.54 million in total stockholders' equity. LEAGUE NOW: Amends First Quarter Form 10-Q for Typos ---------------------------------------------------- League Now Holdings Corporation has amended its quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2013, as filed with the Securities and Exchange Commission on May 15, 2013, solely to correct a typographical error on the cover page of the Form 10-Q, to check the box marked "Yes" (instead of the box marked "No") with respect to whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to that filing requirements for the past 90 days. A copy of the Amended Form 10-Q is available for free at http://is.gd/mp9pfQ About League Now Brecksville, Ohio-based League Now Holdings Corporation, through its subsidiary, Infiniti Systems Group, Inc., provides technology integration services to businesses in the midwestern United States. League Now Holdings disclosed a net loss of $359,365 on $3.72 million of revenue for the 12 months ended Dec. 31, 2012, as compared with a net loss of $112,868 on $3.65 million of revenue for the 12 months ended Dec. 31, 2011. The Company's balance sheet at Dec. 31, 2012, showed $1.41 million in total assets and $1.77 million in total liabilities. Harris F. Rattray CPA, in Pembroke Pines, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has incurred accumulated net losses of $566,540 and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. LEE'S FORD: Has Access to Cash Collateral Until June 10 ------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Kentucky has authorized Lee's Ford Dock, Inc., et al., to continue using Branch Banking & Trust Company's cash collateral until June 10, 2013. The Debtors may continue to use cash collateral during the period from May 11, 2013, through June 10, 2013 to pay those items designated in the budget, a copy of which is available for free at http://bankrupt.com/misc/LEES_FORD_cashcollbudget.pdf As adequate protection for the use of BB&T's cash collateral, the Debtors agreed to make a monthly adequate protection payment to BB&T of $15,000 by the 18th day of May. As with the Debtors' adequate protection payments for July to December 2012 and January to April 2013, the Debtors' timely payment of this monthly adequate protection payment towards BB&T's senior lien will serve to adequately protect the interests of the U.S. Small Business Administration's junior lien. A final hearing on the Debtors' access to cash collateral will be held on June 14, 2013, at 10:00 a.m. (ET). About Lee's Ford Lee's Ford Dock Inc., Hamilton Brokerage LLC, Hamilton Capital LLC, Lee's Ford Hotels LLC, Lee's Ford Woods LLC, and Top Shelf Marine Sales Inc., filed for Chapter 11 bankruptcy (Bankr. E.D. Ky. Case Nos. 12-60818 to 12-60823) on July 4, 2008. The Debtors collectively operate as "Lee's Ford Resort & Marina" -- http://www.leesfordmarina.com/-- which consists of a boat dock, lodging facilities, the Harbor Restaurant & Tavern, a retail store, and a boat brokerage business and Web site located at http://www.buyaboat.neton Lake Cumberland in Nancy, Kentucky. Hamilton Brokerage LLC and Hamilton Capital LLC are not actively involved in the Debtors' operations, but are holding companies set up as part of the structure of the original purchase transactions which began in 2003. The Debtors' revenues were adversely impacted by the lowering of the water level of Lake Cumberland in January 2007 to allow for repairs to Wolf Creek Dam. The Debtors were forced to incur extraordinary costs to relocate the Dock and related facilities in accordance with the new water level. DelCotto Law Group PLLC serves as the Debtors' counsel. The Debtor disclosed $21,225,899 in assets and $13,339,745 in liabilities as of the Chapter 11 filing. The petition was signed by James D. Hamilton, president. Mr. Hamilton has been designated as the individual responsible for performing the duties of the Debtors. The U.S. Trustee has said an official committee has not been appointed in the bankruptcy case of Lee's Ford Dock Inc. because an insufficient number of persons holding unsecured claims against the Debtor have expressed interest in serving on a committee. The U.S. Trustee reserves the right to appoint a committee should interest developed among the creditors. LEE'S FORD: Asks Court to Extend Plan Filing Period Until Sept. 30 ------------------------------------------------------------------ Lee's Ford Dock, Inc., et al., ask the U.S. Bankruptcy Court for the Eastern District of Kentucky to extend the exclusivity periods within which the Debtors may: (i) file their plan and disclosure statement, up to Sept. 30, 2013, and (ii) solicit acceptances of their plan, up to Nov. 29, 2013. Amelia Martin Adams, Esq., an attorney at Delcotto Law Group, PLLC, the counsel for the Debtor, says that the Debtors' bankruptcy proceedings involve sizeable and complex business operations, and the Debtors have made progress since entering Chapter 11. The Debtors first circulated a draft plan and disclosure statement to their major secured lenders and the U.S. Army Corps of Engineers in October 2012. Since then, Branch Banking & Trust Company requested and was allowed to complete a full audit of the Debtors' books and records in late 2012 and early 2013. Additionally, since December 2012, per the request of the U.S. Small Business Administration, the Debtors have engaged in multiple discussions with business consultants selected by the SBA to evaluate the Debtors' operations and potential for reorganization. The Debtors have also been in communication with the Corps regarding potential terms for assumption of the Corps Lease through a consensual plan. Ms. Adams says that the Debtors revised their initial draft plan and disclosure statement to incorporate comments received from BB&T, the SBA, and the Corps through these discussions, and they circulated revised drafts to these parties on April 9, 2013, for further review and comment. "To date, the Debtors have received only preliminary comments from two of these three parties and anticipate receiving comments from the third in the near future," Ms. Adams states. Debtor Lee's Ford Dock, according to Ms. Adams, continues to pursue the Corps Claim and is working to respond to the Corps' requests for additional information. The Corps has indicated that Lee's Ford Dock should not expect to receive a response to the Corps Claim prior to Aug. 23, 2013. The requested exclusivity extensions will allow time for the Debtors to submit additional information to the Corps, for the Corps to consider the information and issue its decision on the Corps Claim, and for the Debtors to formulate their Chapter 11 plan in accordance with the decision. The Debtors are also represented by Laura Day DelCotto, Esq., an attorney at Delcotto Law Group, PLLC. About Lee's Ford Lee's Ford Dock Inc., Hamilton Brokerage LLC, Hamilton Capital LLC, Lee's Ford Hotels LLC, Lee's Ford Woods LLC, and Top Shelf Marine Sales Inc., filed for Chapter 11 bankruptcy (Bankr. E.D. Ky. Case Nos. 12-60818 to 12-60823) on July 4, 2008. The Debtors collectively operate as "Lee's Ford Resort & Marina" -- http://www.leesfordmarina.com/-- which consists of a boat dock, lodging facilities, the Harbor Restaurant & Tavern, a retail store, and a boat brokerage business and Web site located at http://www.buyaboat.neton Lake Cumberland in Nancy, Kentucky. Hamilton Brokerage LLC and Hamilton Capital LLC are not actively involved in the Debtors' operations, but are holding companies set up as part of the structure of the original purchase transactions which began in 2003. The Debtors' revenues were adversely impacted by the lowering of the water level of Lake Cumberland in January 2007 to allow for repairs to Wolf Creek Dam. The Debtors were forced to incur extraordinary costs to relocate the Dock and related facilities in accordance with the new water level. DelCotto Law Group PLLC serves as the Debtors' counsel. The Debtor disclosed $21,225,899 in assets and $13,339,745 in liabilities as of the Chapter 11 filing. The petition was signed by James D. Hamilton, president. Mr. Hamilton has been designated as the individual responsible for performing the duties of the Debtors. The U.S. Trustee has said an official committee has not been appointed in the bankruptcy case of Lee's Ford Dock Inc. because an insufficient number of persons holding unsecured claims against the Debtor have expressed interest in serving on a committee. The U.S. Trustee reserves the right to appoint a committee should interest developed among the creditors. LEGENDS GAMING: June 24 Hearing to Confirm Plan ----------------------------------------------- The Hon. Stephen V. Callaway of the U.S. Bankruptcy Court has approved the adequacy of the Disclosure Statement explaining Louisiana Riverboat Gaming Partnership, et al.'s Chapter 11 Plan, amended as of May 13, 2013. The Court will convene a hearing on June 24, to consider the confirmation of the Plan. Objections, if any, are due June 17, at 5:00 p.m. Written ballots accepting or rejecting the Plan are due June 17. Ballots will be tabulated by the voting agent and certification of ballots will be prepared and filed with the Court by June 20. As reported in the Troubled Company Reporter on May 16, 2013, Bill Rochelle, the bankruptcy columnist for Bloomberg News, reported that the revised reorganization plan will give ownership to first-lien lenders owed $181.2 million. For holders of $215.2 million in unsecured claims, there will be a recovery of 0.02 percent from sharing $40,000 made available by secured lenders, although only if the class votes in favor of the plan. The plan gives the senior secured lenders a new $80 million first-lien term loan on emergence from bankruptcy. Once gaming regulators give lenders permission to become owners, they will be able to exercise options to assume stock ownership at a nominal price. The approved disclosure statement shows senior lenders with a 46 percent recovery. The second-lien claim of $116.3 million will be treated as an entirely unsecured claim and placed in a class of unsecured creditors that will also include the deficiency claim of the first-lien lenders. A copy of the Amended Disclosure Statement is available for free at http://bankrupt.com/misc/LOUISIANA_RIVERBOAT_amendedds.pdf About Legends Gaming Legends Gaming LLC, owns gaming facilities located in Bossier City, Louisiana, and Vicksburg, Mississippi, operating under the DiamondJack's trade name. Legends Gaming LLC, and five related entities, including Louisiana Riverboat Gaming Partnership, filed Chapter 11 petitions (Bankr. W.D. La. Case No. 12-12013) in Shreveport, Indiana, on July 31, 2012, to sell the business for $125 million to Global Gaming Solutions LLC, absent higher and better offers. Legends Gaming acquired the business from Isle of Capri Casinos Inc., in 2006 for $240 million. After breaching covenant with lenders, the Debtors in March 2008 sought Chapter 11 protection, jointly administered under Louisiana Gaming Partnership (Case No. 08-10824). The Debtors emerged from bankruptcy in September 2009 and retained ownership and operation of two "DiamondJacks" hotels and casinos in Bossier City and Vicksburg. The Plan restructured $162.1 million owed to the first lien lenders and $75 million owed to secured lien lenders, which would be paid in full, with interest, over time. The Debtors' properties comprise 60,000 square feet of gaming space with 1,913 slot machines, 48 table games and 693 hotel rooms. Revenues in fiscal 2011 were $99.8 million in Louisiana and $39.7 million in Mississippi. As of July 31, 2012, first lien lenders are owed $181.2 million and second lien lenders are owed $114.7 million. Louisiana Riverboat Gaming Partnership disclosed $104,846,159 in assets and $298,298,911 in liabilities as of the Chapter 11 filing. William H. Patrick, III, Esq., and Tristan E. Manthey, Esq., at Heller, Draper, Patrick & Horn, L.L.C., serve as counsel to the Debtors. Sea Port Group Securities LLC is the financial advisor. Kurtzman Carson Consultants LLC serves as claims and notice agent. The Debtors tapped Jenner & Block LLP as special counsel. The casinos were to have been sold to an affiliate of the Chickasaw Nation for $125 million until the buyer pulled out. They are now in litigation. LIME ENERGY: Gets NASDAQ Listing Non-Compliance Notice ------------------------------------------------------ Lime Energy Co. on May 28 disclosed that on May 22, 2013, it received a letter from The NASDAQ Stock Market LLC notifying it that it was not in compliance with NASDAQ Listing Rule 5250(c)(1) because it had not yet filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 and that the Additional Deficiency served as an additional basis for delisting the Company's common stock from the NASDAQ Stock Market. That letter also formally notified the Company the Panel would consider the Additional Deficiency in their decision regarding the Company's continued listing on the NASDAQ Stock Market. The Company expects to present its views with respect to the Additional Deficiency no later than May 29, 2013. As previously disclosed, the Company received a notice from the NASDAQ Listing Qualifications Staff on January 9, 2013 regarding the Company's failure to satisfy NASDAQ Listing Rule 5250(c)(1) because it had not filed its Quarterly Reports on Form 10-Q for the periods ended June 30, and September 30, 2012, and that as a result its common stock was subject to delisting from the NASDAQ Stock Market. The Company requested a hearing before the NASDAQ Hearings Panel to review the listing determination and to request that the Panel grant it additional time to regain compliance. The hearing was held on February 21, 2013. On March 6, 2013, the Panel notified the Company's that it had agreed to grant its request for continued listing of its common stock on the NASDAQ Stock Market, subject to certain conditions, including the condition that on or before August 9, 2013, the Company shall file its Form 10-Q for the quarter ended March 31, 2013. The Company expects that it will file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 on or before July 31, 2013. The Company also expects that it will file restated financial information for the years ended December 31, 2008, December 31, 2009, December 3, 2010 and December 31, 2011 and for the quarter ended March 31, 2012 on or before June 30, 2013. As previously disclosed, the Company's Audit Committee has determined that the Company's consolidated financial statements for the Affected Periods could not be relied on. The Company also expects that it will file its Annual Report on Form 10-K for the year ended December 31, 2012 and its financial statements for the quarters ended June 30, 2012 and September 30, 2012 on or before June 30, 2013. Headquartered in Huntersville, North Carolina, Lime Energy Co. -- http://www.lime-energy.com-- is engaged in planning and delivering clean energy solutions that assist its clients in their energy efficiency and renewable energy goals. The Company's solutions include energy efficient lighting upgrades, energy efficient mechanical and electrical retrofit and upgrade services, water conservation, building weatherization, on-site generation and renewable energy project development and implementation. The Company provides energy solutions across a range of facilities, from high-rise office buildings, distribution facilities, manufacturing plants, retail sites, multi-tenant residential buildings, mixed use complexes, hospitals, colleges and universities, government sites to small, single tenant facilities. LUCID INC: Delays Form 10-Q for First Quarter --------------------------------------------- Lucid, Inc., was unable to file its quarterly report on Form 10-Q for the period ended March 31, 2013, by the May 15, 2013, filing date applicable to smaller reporting companies. The Company anticipates that it will be able file the 2013 First Quarter Report no later than the fifth calendar day following the prescribed filing date. About Lucid Inc. Rochester, N.Y.-based Lucid, Inc., is a medical device company that designs, manufactures and sells non-invasive cellular imaging devices that assist physicians in the early detection of disease. The Company's VivaScope(R) platform produces rapid noninvasive, high-resolution cellular images for subsequent diagnostic review by physicians, pathologists and other diagnostic readers. The Company's balance sheet at Sept. 30, 2012, showed $2.80 million in total assets, $10.13 million in total liabilities, and a $7.32 million total stockholders' deficit. As reported in the TCR on April 9, 2012, Deloitte & Touche LLP, in Rochester, New York, expressed substantial doubt about Lucid's ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 31, 2011. The independent auditors noted that of the Company's recurring losses from operations, deficit in equity, and projected need to raise additional capital to fund operations. MACCO PROPERTIES: U.S. Trustee Says Dismissal Not in Best Interest ------------------------------------------------------------------ Richard A. Wieland, U.S. Trustee for Region 20, asks the Bankruptcy Court to deny Jennifer Price's motion to dismiss the Chapter 11 case of certain of Macco Properties' affiliates. Ms. Price has requested that the case of JU Villa Del Mar Apartments LLC and SEP Riverpark Plaza LLC be dismissed on certain terms and conditions, generally the payment in full of all creditors' (secured or unsecured) claims (prepetition or postpetition) and administrative expense claims. The U.S. Trustee relates that it would not be in the best interests of creditors and would be a waste of resources for the cases to be dismissed without resolution of all claims. The U.S. Trustee notes that Ms. Price, the Chapter 11 trustee Michael Deeba, and creditors/claimants have been attempting to quantify the exact dollar amount of each claim to be paid. The claims are to be paid via the closing agent in conjunction with the pending sale of the Chapter 11 trustee's membership interests in Riverpark and in the related case of JU Villa Del Mar Apartments, LLC. About Macco Properties Oklahoma City, Oklahoma-based Macco Properties, Inc., is a property management company that is the sole or controlling member and/or manager of numerous multi-family residential rental units in Oklahoma City, Oklahoma, Wichita, Kansas, and Dallas, Texas, and several and commercial business properties in Oklahoma City, Oklahoma, and Holbrook, Arizona. Macco Properties filed for Chapter 11 bankruptcy protection (Bankr. W.D. Okla. Case No. 10-16682) on Nov. 2, 2010. The Debtor disclosed $50,823,581 in total assets, and $4,323,034 in total liabilities. Affiliated entities also sought bankruptcy protection: NV Brooks Apartm ents, LLC (10-16503); JU Villa Del Mar Apartments, LLC and (10-16842); and SEP Riverpark Plaza, LLC (10-16832). SEP Riverpark Plaza owns or controls The Riverpark Apartments, a multi-family apartment complex located in Wichita, Kansas. Receivership Services Corp., a division of the Martens Cos., serves as property manager for the six Wichita apartment complexes caught up in the bankruptcy of Macco Properties of Oklahoma City. On May 31, 2011, an Order was entered appointing Michael E. Deeba as the Chapter 11 Trustee for Macco Properties. He is represented by Christopher T. Stein, of counsel to the firm of Bellingham & Loyd, P.C. Grubb & Ellis/Martens Commercial Group LLC acts as the Chapter 11 Trustee's exclusive listing broker/realtor for properties. The Official Unsecured Creditors' Committee is represented by Ruston C. Welch, at Welch Law Firm, P.C., in Oklahoma City. MARKETING WORLDWIDE: Posts $1.5-Mil. Net Income in March 31 Qtr. ---------------------------------------------------------------- Marketing Worldwide Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $1.46 million on $240,181 of revenue for the three months ended March 31, 2013, as compared with net income of $874,947 on $174,558 of revenue for the same period during the prior year. For the six months ended March 31, 2013, the Company incurred net income of $5.51 million on $434,155 of revenue, as compared with a net loss of $1.18 million on $398,147 of revenue for the same period a year ago. Marketing Worldwide incurred a net loss of $11.11 million for the year ended Sept. 30, 2012, compared with a net loss of $2.27 million during the prior year. The Company's balance sheet at March 31, 2013, showed $1.15 million in total assets, $10.01 million in total liabilities and a $8.85 million total deficiency. A copy of the Form 10-Q is available for free at: http://is.gd/vvn1ZB About Marketing Worldwide Based in Howell, Michigan, Marketing Worldwide Corporation operates through the holding company structure and conducts its business operations through its wholly owned subsidiaries Colortek, Inc., and Marketing Worldwide, LLC. Marketing Worldwide, LLC, is a complete design, manufacturer and fulfillment business providing accessories for the customization of vehicles and delivers its products to large global automobile manufacturers and certain Vehicle Processing Centers primarily in North America. MWW operates in a 23,000 square foot leased building in Howell Michigan. Colortek, Inc., is a Class A Original Equipment painting facility and operates in a 46,000 square foot owned building in Baroda, which is in South Western Michigan. MWW invested approximately $2 million into this paint facility and expects the majority of its future growth to come from this business. RBSM, LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2012. The independent auditors noted that the Company has generated negative cash flows from operating activities, experienced recurring net operating losses, is in default of certain loan covenants, and is dependent on securing additional equity and debt financing to support its business efforts which factors raise substantial doubt about the Company's ability to continue as a going concern. MCCLATCHY CO: Shareholders Elect 11 Directors --------------------------------------------- The McClatchy Company held its annual meeting of shareholders on May 14, 2013, to vote on the election of directors and the ratification of Deloitte & Touche LLP as the Company's independent auditors for 2013. The Company's shareholders elected these directors: Class A common stock -------------------- Elizabeth Ballantine Kathleen Foley Feldstein Clyde Ostler Class B common stock -------------------- Leroy Barnes, Jr. Molly Maloney Evangelisti Brown McClatchy Maloney William B. McClatchy Kevin S. McClatchy Theodore R. Mitchell Frederick R. Ruiz Patrick J. Talamantes The shareholders also approved the ratification of Deloitte & Touche as the Company's independent auditors for 2013. About The McClatchy Company Sacramento, Cal.-based The McClatchy Company (NYSE: MNI) -- http://www.mcclatchy.com/-- is the third largest newspaper company in the United States, publishing 30 daily newspapers, 43 non-dailies, and direct marketing and direct mail operations. McClatchy also operates leading local Web sites in each of its markets which extend its audience reach. The Web sites offer users comprehensive news and information, advertising, e-commerce and other services. Together with its newspapers and direct marketing products, these interactive operations make McClatchy the leading local media company in each of its premium high growth markets. McClatchy-owned newspapers include The Miami Herald, The Sacramento Bee, the Fort Worth Star-Telegram, The Kansas City Star, The Charlotte Observer, and The News & Observer (Raleigh). The McClatchy incurred a net loss of $144,000 in 2012, as compared with net income of $54.38 million in 2011. The Company's balance sheet at March 31, 2013, showed $2.84 billion in total assets, $2.81 billion in total liabilities, and $32.83 million in stockholders' equity. * * * McClatchy carries a 'Caa1' corporate family rating from Moody's Investors Service. In May 2011, Moody's changed the rating outlook from stable to positive following the company's announcement that it closed on the sale of land in Miami for $236 million. The outlook change reflects Moody's expectation that McClatchy will utilize the net proceeds to reduce debt, including its underfunded pension position, which will reduce leverage by approximately half a turn and lower required contributions to the pension plan over the next few years. McClatchy Co. carries a 'B-' Corporate Credit Rating from Standard & Poor's Ratings Services. MEG ENERGY: Moody's Assigns Ba1 Rating to New $2-Bil. Revolver -------------------------------------------------------------- Moody's Investors Service assigned a Ba1 rating to MEG Energy Corp.'s $2 billion senior secured revolving credit facility due May 2018. The Ba3 Corporate Family Rating, Ba3-PD Probability of Default Rating, Ba1 senior secured term loan rating and B1 senior unsecured notes rating were affirmed. The Speculative Grade Liquidity rating of SGL-2 was affirmed and the outlook remained stable. Assignments: Issuer: MEG Energy Corp. $2 billion Senior Secured Bank Revolving Credit Facility, Assigned Ba1 $2 billion Senior Secured Bank Revolving Credit Facility, Assigned a range of LGD2, 27 % Affirmations: Issuer: MEG Energy Corp. Probability of Default Rating, Affirmed Ba3-PD Corporate Family Rating, Affirmed Ba3 Senior Secured Bank Term Loan Credit Facility Mar 31, 2020, Affirmed Ba1 Senior Unsecured Regular Bond/Debenture Mar 15, 2021, Affirmed B1 Senior Unsecured Regular Bond/Debenture Jan 30, 2023, Affirmed B1 Withdrawals: Issuer: MEG Energy Corp. $1 billion Senior Secured Bank Credit Facility Mar 1, 2017, Withdrawn, previously rated Ba1 $1 billion Senior Secured Bank Credit Facility Mar 1, 2017, Withdrawn, previously rated a range of LGD2, 22 % Ratings Rationale MEG's Ba3 CFR reflects a very high current debt level (over $90,000 debt to production), the execution risk of constructing and ramping up Phase 2B to targeted levels through 2014, a relatively small current production base (under 30,000 bbls/day net of royalties), and exposure to volatile light/heavy differentials, as it produces bitumen. However, the rating also reflects MEG's significant cash position, which, along with cash flow, will enable MEG to complete Phase 2B in mid-to-late 2013 as well as advance its infill well project. Moody's expects 75,000bbls/d of total production in the first half of 2015 from Phases 1, 2, 2B and the infill wells. The rating also considers MEG's substantial reserves and land position in key productive areas of the Athabasca oil sands region, all of which will be developed using steam-assisted gravity drainage (SAGD) techniques, and are amongst best-in-class SAGD assets as evidenced by a favorable steam oil ratio (SOR) of 2.4. The company also benefits from 50% ownership of the Access pipeline. In accordance with Moody's Loss Given Default (LGD) Methodology, the $2 billion secured revolver and the $1 billion secured term loan, which rank pari passu, are rated Ba1, two notches above the Ba3 CFR, reflecting the cushion provided by lower ranking unsecured notes. The $800 million and $750 million senior unsecured notes are rated B1, one notch below the CFR. For the unsecured notes rating, Moody's has overridden the LGD Methodology outcome of B2, which is driven by the substantial increase in the revolver to $2 billion and the priority claim this represents. The override reflects Moody's belief that MEG's next significant utilization of debt capital will be in the form of unsecured notes, which, coupled with minimal revolver utilization, would bring the notes rating back to the assigned rating of B1. The SGL-2 speculative grade liquidity rating reflects MEG's good liquidity. As of March 31, 2013 MEG had C$1.8 billion of cash and short-term investments. Combined with an undrawn $2 billion revolver, which matures in 2018, MEG will have ample liquidity to cover negative free cash flow of about C$1.9 billion through to mid-2014 as Phase 2B and the infill wells are being completed and production ramps up. MEG has no financial covenants and good sources of alternate liquidity through its ability to monetize non-core assets or potentially joint venture their 100%-owned properties at Christina Lake or Surmont. The stable outlook considers MEG's successful achievement of production in excess of design capacity at Phases 1 and 2, its large cash position and 100% ownership of a large base of long- lived bitumen reserves. The rating could be considered for upgrade if production is sustainable at 75,000 boe/day and the capital required to develop Phase 3A and Surmont is funded with a reasonable mix of cash flow, debt and equity, and E&P debt to production appears poised to decline towards $35,000 /boe and debt to PD reserves is on a declining trend. The ratings could be downgraded if it becomes apparent that MEG is unable to achieve 75,000 boe/day of production in 2015, if the operating economics of production deteriorate, or if it appears that leverage metrics will not improve from current levels. The principal methodology used in this rating was Global Independent Exploration and Production Industry published in December 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. MEG is a Calgary, Alberta based publicly-held SAGD oil sands development and operating company. MIDTOWN SCOUTS: Hearing Today on Further Access to Cash ------------------------------------------------------- Midtown Scouts Square Property, LP, which sought bankruptcy protection early this month, will ask the bankruptcy judge at a hearing on May 29 at 3 p.m. for approval of its $1 million of DIP financing and for further approval to use cash collateral. Midtown Scouts, which owns two commercial properties located in Midtown Houston, Texas, is using cash collateral to fund operations while it formulates a Chapter 11 plan. The first property is a mixed use 36,000 square-foot two-story office/restaurant building originally constructed in 1975, while the second property is a 104,000 square foot eight-story parking garage with ground floor retail space, both in Bagby Street, in Houston. Rental income from the two properties is currently insufficient to fund operations. The Debtor's motion discloses that the Debtor's limited partner will provide an unsecured DIP financing of up to $1 million to cover the projected shortfall of funds. The DIP financing will be allowed as an administrative expense pursuant to 11 U.S.C. Sec. 503(b)(1). The DIP financing will bear interest of 7% per annum and will mature on Dec. 31, 2013. The DIP lender is Atul Lucky Chopra, M.D., according to the promissory note. Judge Karen K. Brown's interim cash collateral order entered mid- May notes that the non-opposition of Richey Family Limited Partnership, Todd Richey and L.E. Richey to the Court order will not serve as any waiver related to the right or ability of the Richeys to later address the prepetition or postpetition conduct of the Debtors. The interim cash order allowed the Debtor to use cash collateral to pay the expenses shown on the budget, with up to a 10% total variance of budgeted accounts. The Bank of Houston and Mercantile Capital Corp are granted replacement liens on all of the Debtor's accounts receivable and rents acquired after the bankruptcy filing. The Debtor is required to make monthly payments of principal and interest of $30,300 to Bank of Houston until June 4, 2015, to pay off loans used to renovate the building and build the parking garage. The Debtor owes Mercantile $3.35 million in principal for loans provided for the renovation of the office building. The Debtor sought bankruptcy after the interim loan from Mercantile matured in January 2012 and the Debtor due to pending litigation was unable to convert the loan from a construction loan to a permanent loan that would result in a 20-year debenture guaranteed by the SBA at 4% interest. The Debtor also blamed substantially infrastructure work performed by the City of Houston on Bagby Street, which substantially limited the Debtors' access to the properties. Midtown Scouts Square Property, LP, and an affiliate, sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 13-32920) on May 9, 2013. The petitions were signed by Erich Mundinger as president of general partner. Judge Karen K. Brown presides over the case. MSS Property estimated assets and debts of at least $10 million. Hoover Slovacek, LLP, serves as the Debtors' counsel. MIDTOWN SCOUTS: Proposes Hoover Slovacek as Counsel --------------------------------------------------- Midtown Scouts Square Property, LP, and Midtown Scouts Square, LLC are seeking approval to employ Edward L. Rothberg, Esq., and Hoover Slovacek LLP as counsel. The Debtors seek to retain Hoover Slovacek to provide legal advice and services with respect to the cases, the Debtors' powers and duties as debtors in possession, and the continued operation of the Debtors' business and management of the Debtors' property. Current hourly billing rates for Hoover Slovacek are: Professional Rates ------------ ----- Edward L. Rothberg $400 Annie Catmull $320 Melissa Haselden $280 T. Josh Judd $260 Mazelle Krasoff $185 Legal Assistants/Paralegals $80 About Midtown Scouts Square Midtown Scouts Square Property, LP, and affiliate Midtown Scouts Square, LLC, own two commercial properties located in Midtown Houston, Texas. The first property is a mixed use 36,000 square- foot two-story office/restaurant building originally constructed in 1975, while the second property is a 104,000 square foot eight- story parking garage with ground floor retail space, both in Bagby Street, in Houston. The two entities sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 13-32920) on May 9, 2013. The petitions were signed by Erich Mundinger as president of general partner. Judge Karen K. Brown presides over the case. MSS Property estimated assets and debts of at least $10 million. Hoover Slovacek, LLP, serves as the Debtor's counsel. MISSION NEW ENERGY: Arbitration Proceeding vs. PTPN 111 Starts -------------------------------------------------------------- Mission NewEnergy Limited said that the Indonesian Arbitration Board (BANI) has officially registered the request for arbitration by Mission's 85 percent owned subsidiary, Oleovest Pte Ltd. In doing so, BANI has accepted that it has jurisdiction in hearing the dispute over the Indonesian Oleochemical joint venture project between Oleovest and the state-owned plantation company, PT Perkebunan Nusantara 111 and that the arbitration proceeding has been formally initiated. Meanwhile, Mission NewEnergy said that its winding up petition against KNM Process Systems Sdn Bhd has been struck out by the court. The Company has instructed its solicitors to file an appeal against the decision. About Mission NewEnergy Based in Subiaco, Western Australia, Mission New Energy Limited is a producer of biodiesel that integrates sustainable biodiesel feedstock cultivation, biodiesel production and wholesale biodiesel distribution focused on the government mandated markets of the United States and Europe. The Company is not operating its biodiesel refining segment. The refineries are being held in care and maintenance either awaiting a return to positive operating conditions or the sale of assets. The Company has materially diminished its Jatropha contract farming operation and the company is now focused on divesting the remaining Indian assets. The Company intends to cease all Indian operations. Grant Thornton Audit Pty Ltd, in Perth, Australia, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company incurred operating cash outflows of A$4.9 million during the year ended June 30, 2012, and, as of that date, the consolidated entity's total liabilities exceeded its total assets by A$24.4 million. The Company's consolidated balance sheet at Dec. 31, 2012, showed $7.05 million in total assets, $27.29 million in total liabilities and a $20.24 million net deficit. MPM TECHNOLOGIES: Delays Form 10-Q for First Quarter ---------------------------------------------------- MPM Technologies Inc. notified the U.S. Securities and Exchange Commission that it needs additional time to prepare financial statement from the Company's accounting data. As a result, the Company was not able to file its quarterly report on Form 10-Q for the period ended March 31, 2013. About MPM Technologies Headquartered in Parsippany, N.J., MPM Technologies Inc. (OTC BB: MPML) -- http://www.mpmtech.com/-- operates through its three wholly owned subsidiaries: AirPol Inc., NuPower Inc. and MPM Mining Inc. During the year ended Dec. 31, 2007, AirPol was the only revenue generating entity. AirPol operates in the air pollution control industry. It sells air pollution control systems to companies in the United States and worldwide. The company through its wholly owned subsidiary NuPower is engaged in the development and commercialization of a waste-to-energy process known as Skygas. These efforts are through NuPower's participation in NuPower Partnership, in which MPM has a 58.21% partnership interest. NuPower Partnership owns 85% of the Skygas Venture. In addition to its partnership interest through NuPower Inc., MPM also owns 15% of the Venture. The Company's balance sheet at Sept. 30, 2010, showed $1.17 million in total assets, $15.32 million in total liabilities, all current, and a stockholders' deficit of $14.15 million. The Company recorded a net loss of $1.56 million for 2009 from a net loss of $1.72 million for 2008. The Company has not filed its periodic reports after the quarterly report ending Sept. 30, 2010. NAMCO LLC: Has Court's Nod to Hire AM Saccullo as Counsel --------------------------------------------------------- NAMCO LLC sought and obtained authorization from the Hon. Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware to employ A.M. Saccullo Legal, LLC, as counsel for the Debtor, nunc pro tunc to the Petition Date. AMSL will, among other things, take necessary action to protect and preserve the estate of the Debtor, including the prosecution of actions on the Debtor's behalf, the defense of any actions commenced against the Debtor, the negotiation of disputes in which the Debtor is involved, and the preparation of objections to claims filed against the Debtor's estate, at these hourly rates: Anthony M. Saccullo, Member $350 Thomas H. Kovach, Special Counsel $350 To the best of the Debtor's knowledge, AMSL is a disinterested person within the meaning of Sec. 101(14) of the Bankruptcy Code. By separate application, the Debtor has also sought to retain Olshan Frome Wolosky LLP as co-counsel in the case. AMSL will work with Olshan Frome to ensure that duplication of efforts between professionals is minimized in this case. About Namco Manchester, Connecticut-based Namco, LLC, is a 37-store retailer of swimming pools and accessories owned 50-50 by Garmark Partners II LLC and J.H. Whitney & Co. It filed a petition for Chapter 11 protection (Bankr. D. Del. Case No. 13-10610) on March 24, 2013, in Wilmington. Judge Peter J. Walsh presides over the case. Epiq Bankruptcy Solutions, LLC, is the Debtor's claims and noticing agent. Clear Thinking Group, LLC, serves as the Debtor's restructuring agent. In its Petition, the Debtor estimated its assets and debts at between $10 million to $50 million each. The Petition was signed by Lee Diercks, chief restructuring officer. Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed seven members to the Official Committee of Unsecured Creditors. The reorganization of the Debtor is being financed with a $16 million loan provided by Salus Capital Partners LLC, owed $9.3 million on a prepetition revolving credit. NAMCO LLC: Has Court Okay to Hire Olshan Frome as Attorney ---------------------------------------------------------- NAMCO LLC sought and obtained permission from the Hon. Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware to employ Olshan Frome Wolosky LLP as attorneys, nunc pro tunc to the Petition Date. Olshan Frome will, among other things, advise and assist the Debtor in negotiations or communications with the Debtor's customers, equity holders and other stakeholders, and government regulatory bodies, and advise the Debtor in connection with the formulation, negotiation and promulgation of a Chapter 11 plan or plans, and related transactional documents, at these hourly rates: Michael S. Fox $670 Jordanna L. Nadritch $550 Jonathan T. Koevary $490 Partners $425 to $760 Of Counsel $510 to $970 Associates $290 to $525 Paraprofessionals $160 to $270 To the best of the Debtor's knowledge, Olshan Frome is a disinterested person within the meaning of Sec. 101(14) of the Bankruptcy Code. By separate application, the Debtor has also sought to retain A.M. Saccullo Legal, LLC, as co-counsel in this case. AMSL will work with Olshan to ensure that duplication of efforts between professionals is minimized in this case. About Namco Manchester, Connecticut-based Namco, LLC, is a 37-store retailer of swimming pools and accessories owned 50-50 by Garmark Partners II LLC and J.H. Whitney & Co. It filed a petition for Chapter 11 protection (Bankr. D. Del. Case No. 13-10610) on March 24, 2013, in Wilmington. Judge Peter J. Walsh presides over the case. Epiq Bankruptcy Solutions, LLC, is the Debtor's claims and noticing agent. Clear Thinking Group, LLC, serves as the Debtor's restructuring agent. In its Petition, the Debtor estimated its assets and debts at between $10 million to $50 million each. The Petition was signed by Lee Diercks, chief restructuring officer. Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed seven members to the Official Committee of Unsecured Creditors. The reorganization of the Debtor is being financed with a $16 million loan provided by Salus Capital Partners LLC, owed $9.3 million on a prepetition revolving credit. NAMCO LLC: Committee Has OK to Hire Pachulski Stang as Counsel --------------------------------------------------------------- The Official Committee of Unsecured Creditors in the bankruptcy case of NAMCO LLC sought and obtained authorization from the Hon. Peter J. Walsh of the U.S. Bankruptcy Court for the District of Delaware to employ Pachulski Stang Ziehi & Jones LLP as counsel, nunc pro tunc to April 4, 2013. Pachulski Stang will, among other things, assist, advise and represent the Committee in analyzing the Debtor's assets and liabilities, investigating the extent and validity of liens and participating in and reviewing any proposed asset sales, any asset dispositions, financing arrangements and cash collateral stipulations or proceedings, at these hourly rates: Robert J. Feinstein $975 Bradford J. Sandier $750 Peter J. Keane $425 Lynzy McGee $295 To the best of the Committee's knowledge, Pachulski Stang is a disinterested person within the meaning of Sec. 101(14) of the Bankruptcy Code. About Namco Manchester, Connecticut-based Namco, LLC, is a 37-store retailer of swimming pools and accessories owned 50-50 by Garmark Partners II LLC and J.H. Whitney & Co. It filed a petition for Chapter 11 protection (Bankr. D. Del. Case No. 13-10610) on March 24, 2013, in Wilmington. Judge Peter J. Walsh presides over the case. Anthony M. Saccullo, Esq., at A.M. Saccullo Legal, LLC, and Thomas H. Kovach, Esq., at Thorp Reed & Armstrong, LLP, serve as the Debtor's counsel. Olshan Frome & Wolosky, LLP, is the Debtor' general bankruptcy counsel. Epiq Bankruptcy Solutions, LLC, is the Debtor's claims and noticing agent. Clear Thinking Group, LLC, serves as the Debtor's restructuring agent. In its Petition, the Debtor estimated its assets and debts at between $10 million to $50 million each. The Petition was signed by Lee Diercks, chief restructuring officer. Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed seven members to the Official Committee of Unsecured Creditors. The reorganization of the Debtor is being financed with a $16 million loan provided by Salus Capital Partners LLC, owed $9.3 million on a prepetition revolving credit. NATIONAL HOLDINGS: Posts $494,000 Net Income in March 31 Qtr. ------------------------------------------------------------- National Holdings Corporation reported net income of $494,000 on $32.94 million of total revenues for the three months ended March 31, 2013, as compared with a net loss of $1.76 million on $33.21 million of total revenues for the same period during the prior year. For the six months ended March 31, 2013, the Company reported net income of $454,000 on $59.39 million of total revenues, as compared with a net loss of $2.76 million on $58.60 million of total revenues for the same period a year ago. The Company's balance sheet at March 31, 2013, showed $23.85 million in total assets, $12.88 million in total liabilities and $10.97 million in total stockholders' equity. Mark D. Klein, National Holdings' chief executive officer and co- executive chairman, commented, "Over the past nine months, we have implemented a series of initiatives designed to focus our revenue mix on higher margin offerings, reduce costs, return to profitability and strengthen our capital and reporting structures. We are now seeing significant improvements in all of these key areas, with additional benefits to be realized in the coming quarters. Our improving results are a testament to the Company's success managing costs and streamlining operations. We expect to actively evaluate opportunities to expand into new products, broaden our business platform and increase our established brokerage force." A copy of the press release is available for free at: http://is.gd/u50wcX About National Holdings New York, N.Y.-based National Holdings Corporation is a financial services organization, operating primarily through its wholly owned subsidiaries, National Securities Corporation, Finance Investments, Inc., and EquityStation, Inc. The Broker-Dealer Subsidiaries conduct a national securities brokerage business through their main offices in New York, New York, Boca Raton, Florida, and Seattle, Washington. The Company incurred a net loss of $1.93 million for the year ended Sept. 30, 2012, compared with a net loss of $4.71 million during the prior year. Sherb & Co., LLP, in Boca Raton, Florida, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2012. The independent auditors noted that the Company has incurred significant losses and has a working capital deficit as of Sept. 30, 2012, that raise substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning "Our independent public accounting firm has issued an opinion on our consolidated financial statements that states that the consolidated financial statements were prepared assuming we will continue as a going concern and further states that our recurring losses from operations, stockholders' deficit and inability to generate sufficient cash flow to meet our obligations and sustain our operations raise substantial doubt about our ability to continue as a going concern. Our future is dependent on our ability to sustain profitability and obtain additional financing. If we fail to do so for any reason, we would not be able to continue as a going concern and could potentially be forced to seek relief through a filing under the U.S. Bankruptcy Code." NNN PARKWAY: Can Hire Highpoint as Manager & Restructuring Officer ------------------------------------------------------------------ NNN Parkway 400 26 LLC sought and obtained approval from the U.S. Bankruptcy Court to employ Highpoint Management Solutions LLC as manager and the firm's President Maubeen M. Aliniazee as restructuring officer. The firm, will among other things, provide these services: a. assist the Debtor with the coordination of resources related to the reorganization of the Debtor's assets and liabilities; b. assist in the preparation of information for distribution to creditors and other, including bit not limited to, schedules and statements of affairs, debtor-in-possession operating reports, budgets, cash receipts and disbursement analysis, analysis of various assets and liability accounts, and analysis of proposed transactions for which Court approval is sought; and c. attend meetings and assist in discussions with creditors, banks, the Lender, any official committee(s) appointed in the chapter 11 case, the U.S. Trustee, other-parties-in-interest and professionals hired by the same. Highpoint will be paid a $25,000 flat fee. Maubeen M. Aliniazee attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About NNN Parkway 400 NNN Parkway 400 26, LLC, filed a bare-bones Chapter 11 petition (Bankr. C.D. Cal. Case No. 12-24593) in Santa Ana, California, on Dec. 31, 2012. Dana Point, California-based NNN Parkway estimated assets and debts of $10 million to $50 million. David A. Lee, Esq., at Weiland, Golden, Smiley, Wang Ekvall, & Strok, LLP and Christine E. Baur represent the Debtor as counsel. OAK KNOLL: General Partner Loses Bid to Dismiss Chapter 11 Case --------------------------------------------------------------- Maine District Judge George Z. Singal denied the plaintiff's Motion to Withdraw Reference and both parties' Joint Request for Oral Argument in the case, ROSA W. SCARCELLI, Plaintiff v. OAK KNOLL ASSOCIATES LP, Defendant, Case No. 2:13-mc-62-GZS (D. Maine). Via the motion, Ms. Scarcelli seeks to withdraw the entirety of Oak Knoll's chapter 11 case. Ms. Scarcelli asserts that upon withdrawal she will then file a motion to dismiss. Ms. Scarcelli maintains a tripartite relationship with Oak Knoll Associates LP, which owns a subsidized 42-unit apartment project in Norwalk, Connecticut. Ms. Scarcelli is (1) a general partner of the Debtor, (2) a majority owner of two companies that have ongoing contracts with the Debtor, and (3) a beneficiary of the Promenade Trust, which is the sole limited partner and 100 percent equity owner of the Debtor. Ms. Scarcelli also obtained a default judgment against Pamela Gleichman, the Managing General Partner of Oak Knoll last year in a case before the District Court titled: Scarcelli v. Gleichman, et al., D. Me. Case no. 2:12-cv-72-GZS. As part of that default judgment, the Court enjoined Ms. Gleichman from taking certain actions with respect to Oak Knoll. Ms. Scarcelli argues that this default judgment serves as a basis for dismissing Oak Knoll's bankruptcy petition and that the District Court is best positioned to decide this issue given its involvement in entering the default judgment. According to Judge Singal, "considering all of the relevant factors and the entire procedural history that culminated in the entry of the default judgment in the Gleichman case, the Court declines to find cause for withdrawing the reference of the pending bankruptcy petition. Rather, on the record presented, the Court readily concludes that allowing the petition to proceed before the Bankruptcy Court best promotes the goals of uniformity and judicial economy and will best preserve the resources of all involved parties. The Court believes that its prior written orders in the Gleichman case are readily reviewed by the Bankruptcy Court. Given its experience and expertise with all of the core issues presented, the Bankruptcy Court is best positioned to determine what impact, if any, the prior 2012 default judgment has on the pending Oak Knoll petition, including whether the petition should be dismissed." With respect to the request for oral argument, the Court has determined in an exercise of its discretion that the pending motion may be resolved on the written submissions and that scheduling oral argument would not serve the ends of justice because it would further delay resolution of the pending motion. A copy of the District Court's May 21, 2013 Order is available at http://is.gd/8m2Pcufrom Leagle.com. Oak Knoll Associates, L.P., in Portland, Maine, filed for Chapter 11 bankruptcy (Bankr. D. Maine Case No. 13-20205) on March 18, 2013. Richard P. Olson, Esq., at Perkins Olson, P.A., serves as counsel. The Debtor scheduled assets of $6,700,000 and liabilities of $3,529,350. OTELCO INC: Reorganization Plan Declared Effective -------------------------------------------------- BankruptcyData reported that according to documents filed with the U.S. Securities and Exchange Commission, Otelco's Joint Prepackaged Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The Court confirmed the Plan on May 6, 2013. As previously reported, the Plan provides for the following: each holder of the senior secured term loan claims shall receive its pro rata share of (i) term loan obligations of the Company under the new senior secured credit facility of not more than $142 million, maturing on April 30, 2016; (ii) a cash payment of no less than $20 million and (iii) the new Class B common stock representing 7.5% of the total economic and voting interest in reorganized Otelco. In addition, the Plan calls for reinstatement of allowed senior secured revolving loan claims, as amended, with availability of up to $5 million, pursuant to the new senior secured credit facility agreement and each holder of the Company's outstanding subordinated notes to receive a pro rata share of the new Class A common stock. The Plan further provides for reinstatement of allowed general unsecured claims in full, provided, that, if holders of Class 5 subordinated notes claims vote to reject the Plan, holders of allowed general unsecured claims shall receive a cash payment equal to 40.5% of the allowed amount of such general unsecured claim. Finally, the Plan calls for cancellation of all of the Company's existing equity interests. Also, in the effective date, the following directors ceased to serve on the Company's board of directors: William Bak, Robert E. Guth and William F. Reddersen; and the number of directors of the Company was fixed at seven. The board now consists of Norman C. Frost, Howard J. Haug, Stephen P. McCall, Andrew Meyers, Brian A. Ross, Gary L. Sugarman and Michael D. Weaver, the Company's president and C.E.O. About Otelco Inc. Oneonta, Alabama-based Otelco Inc. operates eleven rural local exchange carriers ("RLECs") serving subscribers in north central Alabama, central Maine, western Massachusetts, central Missouri, western Vermont and southern West Virginia. On March 24, 2013, the Company and each of its direct and indirect subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 13- 10593) in order to effectuate their prepackaged Chapter 11 plan of reorganization -- a plan that already has been accepted by 100% of the Company's senior lenders, as well as holders of over 96% in dollar amount of Otelco's senior subordinated notes who cast ballots. Otelco's restructuring plan will strengthen the Company by deleveraging its balance sheet and reducing its overall indebtedness by approximately $135 million. The Company's restructuring counsel is Willkie Farr & Gallagher LLP and its financial advisor is Evercore Partners. The restructuring counsel for the administrative agent for the senior lenders is King & Spalding LLP and its financial advisor is FTI Consulting. On May 6, 2013, the Bankruptcy Court entered an order confirming the Plan. PARK SIDE ESTATES: Hires Robinson Brog as Counsel ------------------------------------------------- Park Side Estates LLC asks the U.S. Bankruptcy Court for permission to employ Robinson Brog Leinwand Greene & Gluck P.C. as counsel. A. Mitchell Green, Esq., attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm will received five payments totaling $21,213. About Park Side Estates Monsey, New York-based Park Side Estates, LLC, sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 13-22198) in White Plains on Feb. 7, 2013, estimating assets and liabilities in excess of $10 million. The Debtor owns the real property located at 143-159 Classon Avenue, Brooklyn, New York, improved by two buildings with 37 residential units, commercial units and parking. It said that its principal asset is located at 143-159 Classon Avenue, in Brooklyn. The Debtor sought bankruptcy to trigger the automatic stay to stop the auction. The petition was signed by Moshe Junger as managing member. Robinson Brog Leinwand Greene Genovese & Gluck, P.C., serves as the Debtor's counsel. The Debtor estimated assets and debts of at least $10 million as of the Petition Date. Judge Robert D. Drain presides over the case. PATRIOT COAL: Wants to Employ GT as Litigation Counsel ------------------------------------------------------ Patriot Coal Corporation and its subsidiaries ask the U.S. Bankruptcy Court for the Southern District of New York for authorization to employ Greenberg Traurig, LLP, nunc pro tunc to May 1, 2013, as special litigation counsel. Greenberg Traurig will render, among others, these professional services: a. prepare, on behalf of the Debtors, all necessary and appropriate motions, proposed orders, other pleadings, notices and other documents in connection with certain federal black lung litigation; b. advise and assist the Debtors in connection with any settlements concerning the federal black lung litigation; and c. perform all other necessary or appropriate legal services. To the best of the Debtors' knowledge, information and belief, other than in connection with these chapter 11 cases and in prior representations of the Debtors, Greenberg Traurig does not represent or hold any interest adverse to the Debtors or to the estates with respect to the Retained Matters on which Greenberg Traurig is to be employed, except for de minimis amounts owed by the Debtors for prepetition services rendered by Greenberg Traurig totaling approximately $58,251. The range of hourly rates for any Greenberg Traurig professional working on any federal black lung litigation matter for the Debtors is $305 per hour, or less. About Patriot Coal St. Louis-based Patriot Coal Corporation (NYSE: PCX) is a producer and marketer of coal in the eastern United States, with 13 active mining complexes in Appalachia and the Illinois Basin. The Company ships to domestic and international electricity generators, industrial users and metallurgical coal customers, and controls roughly 1.9 billion tons of proven and probable coal reserves. Patriot Coal and nearly 100 affiliates filed voluntary Chapter 11 petitions in U.S. bankruptcy court in Manhattan (Bankr. S.D.N.Y. Lead Case No. 12-12900) on July 9, 2012. Patriot said it had $3.57 billion of assets and $3.07 billion of debts, and has arranged $802 million of financing to continue operations during the reorganization. Davis Polk & Wardwell LLP is serving as legal advisor, Blackstone Advisory Partners LP is serving as financial advisor, and AP Services, LLC is providing interim management services to Patriot in connection with the reorganization. Ted Stenger, a Managing Director at AlixPartners LLP, the parent company of AP Services, has been named Chief Restructuring Officer of Patriot, reporting to the Chairman and CEO. GCG, Inc. serves as claims and noticing agent. The U.S. Trustee appointed a seven-member creditors committee. Kramer Levin Naftalis& Frankel LLP serves as its counsel. HoulihanLokey Capital, Inc., serves as its financial advisor and investment banker. Epiq Bankruptcy Solutions, LLC, serves as its information agent. On Nov. 27, 2012, the New York bankruptcy judge moved Patriot's bankruptcy case to St. Louis. The order formally sending the reorganization to Missouri was signed December 19 by the bankruptcy judge. The New York Judge in a Jan. 23, 2013 order denied motions to transfer the venue to the U.S. Bankruptcy Court for the Southern District of West Virginia. PEER REVIEW: Delays Form 10-Q for First Quarter ----------------------------------------------- Peer Review Mediation and Arbitration, Inc., was not able to timely complete its financial statements on Form 10-Q for the period ended March 31, 2013. About Peer Review Deerfield Beach, Fla.-based Peer Review Mediation and Arbitration, Inc., was incorporated in the State of Florida on April 16, 2001. The Company provides peer review services and expertise to law firms, medical practitioners, insurance companies, hospitals and other organizations in regard to personal injury, professional liability and quality review. The Company's balance sheet at Sept. 30, 2012, showed $1.8 million in total assets, $5.9 million in total liabilities, and a stockholders' deficit of $4.1 million. As reported in the TCR on Aug. 6, 2012, Peter Messineo, CPA, in Palm Harbor, Fla., expressed substantial doubt about Peer Review's ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 31, 2011. Mr. Messineo noted that the Company has recurring losses from operations, a working capital deficit, negative cash flows from operations and a stockholders' deficit. PIONEER CONTRACTING: Settles US Trustee's Dismissal Bid ------------------------------------------------------- The U.S. Trustee moved to convert the Chapter 11 case of Pioneer Contracting Company, Inc., to chapter 7 or to dismiss the case, for cause. The Debtor opposed the relief. The U.S. Trustee filed an amended motion on May 22, 2013. The Debtor and the U.S. Trustee have agreed to terms to resolve the amended motion. They agree that: 1. The Debtor will cure delinquency in monthly reporting by June 30, 2013 (reports through May 2013 will be filed by that date); 2. The Debtor will maintain timely filing of monthly reports thereafter; 3. The Debtor will file a plan and disclosure statement (or a case-dispositive motion) by Dec. 31, 2013. 4. The Debtor will maintain timely payment of fees under 28 U.S.C. Sec. 1930(a)(6). Failure of the Debtor to comply with the agreement will, upon certification by the U.S. Trustee, result in a rescheduling of a hearing to consider the conversion or dismissal, for cause. Maryland Bankruptcy Judge David E. Rice signed off on the parties' Stipulation and Consent Order on May 23, a copy of which is available at http://is.gd/OmS5ihfrom Leagle.com. Pioneer Contracting Co., Inc., filed for Chapter 11 bankruptcy (Bankr. D. Md. Case No. 12-24480) on Aug. 6, 2012, listing under $1 million in both assets and debts, and represented by Tate Russack, Esq. -- tate@russacklaw.com -- at Russack Associates, LLC. PITTSBURGH CORNING: Court Issues Final Order Confirming Plan ------------------------------------------------------------ PPG Industries on May 28 disclosed that the United States Bankruptcy Court for the Western District of Pennsylvania issued a revised opinion and final order confirming the current Pittsburgh Corning plan of reorganization. The court previously issued an opinion and interim order confirming the plan of reorganization on May 16, 2013. PPG and Corning Incorporated are each 50 percent shareholders of Pittsburgh Corning, which filed for Chapter 11 bankruptcy protection in 2000. Under the terms of the current plan, which includes the PPG asbestos settlement arrangement, all current and future personal injury claims against PPG relating to exposure to asbestos- containing products manufactured, distributed or sold by Pittsburgh Corning will be channeled to a trust for resolution. The final confirmation order will be subject to a customary appeals process and, if the confirmation order is upheld and all conditions are met, the plan of reorganization would become effective. Under the plan of reorganization, PPG and its participating insurers are to make their initial payments to the trust 30 business days after the plan becomes effective and all conditions to funding have been met. Under the PPG settlement arrangement, PPG's obligation to the trust consists of cash payments totaling approximately $825 million to be made according to a fixed payment schedule over a period ending in 2023, about 1.4 million shares of PPG stock or cash equivalent, and surrendering its shares in Pittsburgh Corning and Pittsburgh Corning Europe. At March 31, 2013, PPG's accrued liability related to the settlement arrangement, including the pre-tax present value of the cash payments, totaled approximately $800 million of which approximately $550 million was the current portion. In addition to PPG's obligation to the trust, the company's participating historical insurance carriers are to make cash payments to the trust of approximately $1.7 billion in a series of payments ending in 2027. About PPG Industries PPG Industries (NYSE:PPG) -- http://www.ppg.com-- is a coatings and specialty products company. Founded in 1883, PPG has global headquarters in Pittsburgh and operates in nearly 70 countries around the world. Sales in 2012 were $15.2 billion. About Pittsburgh Corning Pittsburgh Corning Corporation filed for Chapter 11 bankruptcy protection (Bankr. W.D. Pa. Case No. 00-22876) on April 16, 2000, to address numerous claims alleging personal injury from exposure to asbestos. At the time of the bankruptcy filing, there were about 11,800 claims pending against the Company in state court lawsuits alleging various theories of liability based on exposure to Pittsburgh Corning's asbestos products and typically requesting monetary damages in excess of $1 million per claim. The Hon. Judith K. Fitzgerald presides over the case. Reed Smith LLP serves as counsel and Deloitte &Touche LLP as accountants to the Debtor. The United States Trustee appointed a Committee of Unsecured Trade Creditors on April 28, 2000. The Bankruptcy Court authorized the retention of Leech, Tishman, Fuscaldo&Lampl, LLC, as counsel to the Committee of Unsecured Trade Creditors, and Pascarella& Wiker, LLP, as financial advisor. The U.S. Trustee also appointed a Committee of Asbestos Creditors on April 28, 2000. The Bankruptcy Court authorized the retention of these professionals by the Committee of Asbestos Creditors: (i) Caplin&Drysdale, Chartered as Committee Counsel; (ii) Campbell & Levine as local counsel; (iii) Anderson Kill &Olick, P.C. as special insurance counsel; (iv) Legal Analysis Systems, Inc., as Asbestos-Related Bodily Injury Consultant; (v) defunct firm, L. Tersigni Consulting, P.C. as financial advisor, and (vi) Professor Elizabeth Warren, as a consultant to Caplin&Drysdale, Chartered. On Feb. 16, 2001, the Court approved the appointment of Lawrence Fitzpatrick as the Future Claimants' Representative. The Bankruptcy Court authorized the retention of Meyer, Unkovic& Scott LLP as his counsel, Young Conaway Stargatt& Taylor, LLP, as his special counsel, and Analysis, Research and Planning Corporation as his claims consultant. In 2003, a plan of reorganization was agreed to by various parties-in-interest, but, on Dec. 21, 2006, the Bankruptcy Court issued an order denying the confirmation of that plan, citing that the plan was too broad in addressing independent asbestos claims that were not associated with Pittsburgh Corning. On Jan. 29, 2009, an amended plan of reorganization (the Amended PCC Plan) -- which addressed the issues raised by the Court when it denied confirmation of the 2003 Plan -- was filed with the Bankruptcy Court. As reported by the TCR on April 25, 2012, Pittsburgh Corning Corp., a joint venture between Corning Inc. and PPG Industries Inc., filed another amendment to its reorganization plan designed to wrap up a Chapter 11 begun 12 years ago. The Company's balance sheet at Sept. 30, 2012, showed $29.41 billion in total assets, $7.52 billion in total liabilities and $21.88 billion in total equity. PLAZA VILLAGE: June 3 Hearing on Motions to Dismiss Case -------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of California will convene a hearing on June 3, 2013, at 2 p.m., to consider motions to dismiss the Chapter 11 case of Plaza Village Senior Living, LLC. The Court granted an ex parte motion for order consolidating the hearing dates on the motions to dismiss cases. As reported by the Troubled Company Reporter on May 20, 2013, the Debtor sought dismissal of the case because it has been able to resolve the financial difficulty outside of the Bankruptcy Court and it has the support of the creditors for dismissal. On April 29, Pacific Horizon Mortgage Investors I, LLC -- the only unsecured creditor who is a non-insider -- requested dismissal of the Debtor's case, stating that: 1. Darryl Clubb, the Debtor's managing member, did not have the authority to file the case; and 2. the case was filed in bad faith. Philip J. Giacinti, Jr., Esq., represented PHM. About Plaza Village Senior Living, LLC Plaza Village Senior Living, LLC, filed a Chapter 11 petition (Bankr. S.D. Cal. Case No. 13-02723) on March 19, 2013. Darryl Clubb signed the petition as managing member. The Debtor scheduled assets of $11,533,346 and scheduled liabilities of $15,751,246. The Law Offices of Andrew H. Griffin, III, serves as the Debtor's counsel. On March 27, 2013, the bankruptcy case was transferred to the calendar of Bankruptcy Judge Peter W. Bowie for all further matters and hearing. Tiffany L. Carroll, Acting U.S. Trustee for Region 15, was unable to appoint an official committee of unsecured creditors. PLAZA VILLAGE: Joseph Rodrigues Named as Patient Care Ombudsman --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of California last month approved the appointment as patient care ombudsman for Plaza Villa Senior Living, LLC, of: Joseph Rodrigues State Long-Term Care Ombudsman 1300 National Drive, Suite 200 Sacramento, CA 95834 The Court directed Timothy L. Carroll, acting U.S. Trustee for Region 15, to appoint an ombudsman. About Plaza Village Senior Living Plaza Village Senior Living, LLC, filed a Chapter 11 petition (Bankr. S.D. Cal. Case No. 13-02723) on March 19, 2013. Darryl Clubb signed the petition as managing member. The Debtor scheduled assets of $11,533,346 and scheduled liabilities of $15,751,246. Andrew H. Griffin, III, Esq., of Law Offices of Andrew H. Griffin, III, serves as the Debtor's counsel. On March 27, the bankruptcy case was transferred to the calendar of Bankruptcy Judge Peter W. Bowie for all further matters and hearings. Tiffany L. Carroll, Acting U.S. Trustee for Region 15, informed the Court that no committee of unsecured creditors has been appointed because sufficient indications of willingness to serve on the committee have not been received from eligible persons. PONCE TRUST: Wants Fully Administered Chapter 11 Case Closed ------------------------------------------------------------ Southern District Of Florida Ponce Trust, LLC, asked the U.S. Bankruptcy Court for the Southern District of Florida to enter a final decree and close its fully administered case. On Dec. 26, 2012, the Court confirmed the Third Amended Plan, as revised. The plan provided for a 100% dividend to creditors in Class 4(b). The deposit required by the Plan has been distributed and all matters to be completed upon the Effective Date of the confirmed Plan have been fulfilled or completed. There are no pending adversary proceedings or contested matters which would affect the substantial consummation of the case. As reported in the Troubled Company Reporter on Feb. 18, 2013, the Third Amended dated Dec. 14, 2012, proposes to pay creditors from four sources: (1) cash flow received from rent revenue; (2) the sale to C&T Charters, Inc., (3) condominium sales and (4) the approximately $200,000 to $250,000 New Value Contribution from the Debtor's current equity holders. About Ponce Trust Ponce Trust LLC, the developer and owner of the luxury residential condominium development known as 1300 Ponce, in Coral Gables, Florida, filed for Chapter 11 bankruptcy (S.D. Fla. Case No. 12-14247) on Feb. 22, 2012. Judge Robert A. Mark presides over the case. Andrea L. Rigali, Esq., Joel L. Tabas, Esq., and Mark S. Roher, Esq., at Tabas, Freedman, Soloff, Miller & Brown, P.A., serve as the Debtor's counsel. The petition was signed by Luis Lamar, vice president and manager. Ponce Trust sought Chapter 11 because of (a) the declining real estate market, (b) its inability to reduce condominium prices in response to changing market conditions, and (c) its inability, due to circumstances beyond the Debtor's control, to renew, repay, or refinance its secured mortgage debt owed to MUNB Loan Holdings, LLC, which matured in 2011. Prior to the Petition Date, MUNB initiated a foreclosure action against the Property in the Circuit Court of the 11th Judicial Circuit in and for Miami-Dade County, Florida. On July 21, 2011, the State Court entered an Order Appointing Receiver, which inter alia appointed Jeremy S. Larkin as receiver. Mr. Larkin is the President of NAI Miami Commercial Real Estate Services, Worldwide. 1300 Ponce contains 125 residential condominium units. As of the bankruptcy filing date, the Debtor has a remaining inventory of about 83 units and rented about 40 of those units. The Debtor intends to market the remaining Condominium Units for both sale and rental. The Debtor disclosed $22,734,532 in assets and $46,999,376 in liabilities as of the Chapter 11 filing. The residential condominium unit is worth $19 million. MUNB is owed $37.3 million. 1300 Ponce Holdings LLC, assignee of MUNB, is represented by Carlton Fields, P.A. The Court confirmed the Third Amended Chapter 11 Plan on Dec. 26, 2012. Joel L. Tabas named as disbursing agent. Status hearing scheduled for March 14, 2013 at 2 p.m. Under the Plan, 300 Ponce Holdings, which made an election under 11 U.S.C. Sec. 1111(b) to have one secured claim in the amount of $38,174,090, will be paid a stream of payments equal to or greater than its total claim from unit sales revenues and rental income. Unsecured creditors will be paid in monthly installments over seven years in graduated payments through the life of the Plan starting in November 2017. In April 2012, the U.S. Trustee said an official committee of unsecured creditors has not been appointed. POWERWAVE TECHNOLOGIES: Heritage to Co-Manage Sale of Assets ------------------------------------------------------------ Heritage Global Partners, and its parent company Counsel RB Capital, in conjunction with Maynards Industries Ltd., New Mill Capital LLC, and The Branford Group, on May 28 disclosed that they will jointly manage a series of sales for the complete turnkey wireless network infrastructure and related capital assets of Powerwave Technologies Inc. Powerwave designs, manufactures, and markets a comprehensive suite of wireless technologies and is a global supplier of end-to-end wireless solutions for wireless communications networks. Together, the companies acquired Powerwave's assets following its Chapter 11 bankruptcy at an original asset acquisition cost of approximately $100 million. A series of global online auctions will be hosted and managed by Heritage, complete details and event dates to follow at http://www.hgpauction.com/ "Together with our valued partners we will be conducting a series of sales of Powerwave's state-of-the-industry wireless network and capital assets. The upcoming auctions include an unprecedented offering of capital assets and will be the year's largest sale of Test and Measurement equipment, by far. We believe our combined global presence and familiarity with the marketplace, paired with our expert industry knowledge, will attract significant interest from worldwide buyers," stated Ross Dove, Managing Partner of Heritage Global Partners. "We are anticipating very strong demand from buyers worldwide as the upcoming sales represent a unique opportunity to acquire a wealth of high quality assets, including base station antennas, tower mounted amplifiers (TMA), filters, furnishings, tooling, wireless inventory and equipment, and much more. We look forward to working together to maximize the ultimate value of Powerwave's assets," stated Matthew DelGuidice, VP of Maynards US Operations. Led by auction industry pioneers Ross and Kirk Dove, Heritage Global Partners is one of the leading worldwide asset advisory and auction services firms, assisting companies with buying and selling assets. HGP specializes in asset brokerage, inspection, and valuations, industrial equipment and real estate auctions, and much more. About Powerwave Technologies Powerwave Technologies Inc. (NASDAQ: PWAV) filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 13-10134) on Jan. 28, 2013. Powerwave Technologies, headquartered in Santa Ana, Cal., is a global supplier of end-to-end wireless solutions for wireless communications networks. The Company has historically sold the majority of its product solutions to the commercial wireless infrastructure industry. The Company's balance sheet at Sept. 30, 2012, showed $213.45 million in total assets, $396.05 million in total liabilities and a $182.59 million total shareholders' deficit. Aside from a $35 million secured debt to P-Wave Holdings LLC, the Debtor owes $150 million in principal under 3.875% convertible subordinated notes and $106 million in principal under 2.5% convertible senior subordinated notes where Deutsche Bank Trust Company Americas is the indenture trustee. In addition, as of the Petition Date, the Debtor estimates that between $15 and $25 million is outstanding to its vendors. The Debtor is represented by attorneys at Proskauer Rose LLP and Potter Anderson & Corroon LLP. Prepetition secured lender, P-Wave Holdings LLC, is represented by Martin A. Sosland, Esq., and Joseph H. Smolinsky, Esq., at Weil Gotshal & Manges LLP; and Mark D. Collins, Esq., and John H. Knight, Esq., at Richards Layton & Finger. The Official Committee of Unsecured Creditors has retained Sidley Austin LLP; Young Conaway Stargatt & Taylor LLP; and Zolfo Cooper, LLC. PREMIER PAVING: Court OKs Stipulation for Continued Cash Access --------------------------------------------------------------- The Bankruptcy Court approved a stipulation authorizing Premier Paving, Inc.'s continued access to cash collateral pursuant to a final cash collateral agreement. As reported by the Troubled Company Reporter on March 21, 2013, the Debtor sought court authorization to use cash collateral in order to pay necessary operating expenses. Wells Fargo Bank, N.A., which asserts claims of $6.5 million for loans provided prepetition, may have a secured lien position on the Debtor's funds and revenues that constitute cash collateral. In a court filing dated April 1, 2013, the Debtor said that since September 2012, the Debtor and Wells Fargo consented to the continued use of cash collateral on a monthly basis, pursuant to the nearly identical terms and budget of the stipulation of cash collateral use with the previous agreement expiring April 1. About Premier Paving Denver, Colorado-based Premier Paving Inc. -- http://www.premierpavinginc.com/-- operates a full-service highway construction company, which services include paving, grading and milling, geo-textiles, trucking, traffic control and quality control. Premier Paving also owns and operates an asphalt plant. Premier Paving filed for Chapter 11 bankruptcy (Bankr. D. Colo. Case No. 12-16445) on April 2, 2012. Judge Michael E. Romero presides over the case. Lee M. Kutner, Esq., at Kutner Miller Brinen, P.C., serves as the Debtor's counsel. In its petition, the Debtor estimated up to $50 million in assets and debts. The petition was signed by David Goold, treasurer. The Official Unsecured Creditors Committee is represented by Onsager, Staelin & Guyerson, LLC. The secured lender, Wells Fargo Bank N.A., is represented by Douglas W. Brown, Esq., at Brown, Berardini & Dunning P.C. The Debtor filed its Plan, along with its Disclosure Statement, on Oct. 31, 2012. Early in December, the Debtor won Court permission to employ Pinnacle Real Estate Advisors LLC to provide professional broker services related to the sale of certain of the Debtor's real estate assets. PRIMCOGENT SOLUTIONS: In Dispute With Everyone; Seeks Cash Use -------------------------------------------------------------- Before seeking bankruptcy, Primcogent Solutions LLC says the sole supplier of its products, Erchonia Corporation, terminated their exclusive distribution agreement, its secured lender seized its bank account, and the prior exclusive North American distributor of Erchonia's products misled it into buying the business less than two years ago. Primcogent Solutions has sought Chapter 11 protection as a "last resort" and is now asking the bankruptcy court for various relief, including use of cash collateral of secured lender ORIX Ventures, LLC, an injunction against Erchonia's "wrongful actions and conduct" against the Debtor, and declaratory relief that, among other things, the Erchonia agreements have not been terminated. The Debtor estimates that if it is able to use cash collateral, and if Erchonia is enjoined from continuing to breach its obligations under the agreements and damage the Debtor's business with its tortious actions, the Debtor would have more than sufficient cash flow to "service" the secured loan obligations to ORIX through monthly payments, in cash, of postpetition interest. The interest payments, along with replacement liens, will serve as adequate protection to ORIX. The Debtor says there's still interest from investors notwithstanding wrongful conduct by Erchonia and the secured lender. During the period preceding the Petition Date, the Debtor engaged in regular negotiations with potential investors interested in financing the Debtor's operations or otherwise making an investment in the Debtor's business. As recently as May 12, 2013, the Debtor received a term sheet from a well-known and well- financed institutional investor which provided for $5 million of financing and payment of all amounts allegedly owed to Erchonia under the Erchonia agreements. The Debtor has had a number of other indications of interest and discussions with potential investors prior to the Petition Date. Adversary Proceedings The Debtor has commenced Adversary Proceeding No. 13-04053 against Erchonia to enjoin Erchonia from continuing to breach its obligations under the agreements and to obtain a declaratory judgment that Erchonia breached the agreements prior to termination, and that the unilateral termination of the agreement is invalid. A copy of the complaint is available for free at: http://bankrupt.com/misc/Primcogent_vs._Erchonia_Complaint.pdf The Debtor has also commenced an adversary proceeding against Santa Barbara Medical Innovations, LLC, seeking a declaration that SBMI's conduct when it sold the business to the Debtor in 2011 was fraudulent, malicious, and resulted in harm to the Debtor. The Debtor claims that during sale negotiations, SBMI made materially false representations to the Debtor including, but not limited to, misrepresenting (i) the number of Zerona Body Lasers being rented by customers, (ii) SBMI's relationship with its customers, including the level of returns by customers of the Zerona Body Lasers, (iii) the revenues being generated by the Zerona Body Lasers, including recurring revenues from rentals, and (iv) the valuation of SBMI resulting from such cash flows. The Debtor says SBMI's breaches and fraudulent conduct have caused the Debtor millions of dollars in damages and ultimately resulted in the Debtor seeking the protective relief of the Court's jurisdiction under chapter 11 of the Bankruptcy Code. A copy of the complaint is available for free at: http://bankrupt.com/misc/Primcogent_vs_SBMI_Complaint.pdf Erchonia Wants to Sell Products to Others Erchonia has filed a motion asking the Court for an order determining that the automatic stay does not apply or, alternatively, granting it relief from the automatic stay provisions of the Bankruptcy Code pursuant to 11 U.S.C. Sec. 362 (d)(1), in either case, with respect to Erchonia's activities in selling its products and protecting its intellectual property rights. "PrimCogent did not cure its monetary defaults and did not meet its required sales quotas. Accordingly, Erchonia proceeded with its contractual rights to terminate the Debtor's contractual rights. That termination was completed weeks prior to the filing of this proceeding. There is no reason for the stay to remain in place," Erchonia said. $45 Million Business The Debtor's books and records reflect total assets of roughly $50 million and total liabilities of roughly $26 million, as of April 30, 2013. As of the bankruptcy filing, the Debtor was indebted and liable to ORIX for $11 million. The Debtor is also liable for roughly $4,050,000 in subordinated notes, as well as $7 million in pre- petition trade debt to vendors, suppliers and other trade creditors. The Debtor relates that on a valuation performed at the time of the 2011 acquisition, the Debtor's products, if the Debtor's rights in such products under the Erchonia agreements are preserved, would have an estimated value of roughly $45 million. At a minimum, based on the foregoing valuation, the value of the Debtor's products remaining in its warehouse would have an estimated value of roughly $20 million. About Primcogent Solutions Primcogent Solutions, LLC, is a supplier and distributor of medical equipment and services in North America. Primcogent operates as the exclusive North American (and, through its European subsidiaries, Western European) seller or distributor of equipment manufactured by Erchonia Corporation, pursuant to exclusive license and supply agreements. Products sold include Erchonia's non-invasive body-contouring laser technology trademarked under the name Zerona(R), including the Zerona Body Laser. Primcogent was formed in late 2011 following the acquisition of the business of Santa Barbara Medical Innovations LLC for $18 million. Although the Erchonia agreement gave Primcogent perpetual rights to sell Erchonia products, Erchonia declared in March 2013 that the agreement has been terminated due to Primcogent's alleged failure to perform and starting that time stopped servicing Primcogent's products. Primcogent, on the other hand, claims Erchonia has committed fraud, breached the agreement and tortiously interfered with Primcogent's business. Primcogent cites, among other things, Erchonia's failure to obtain FDA clearance of Lunula, a laser technology used to treat or cure toe fungus. Primcogent also claims ORIX, its secured lender, is working in concert with Erchonia. A default in the Erchonia agreement triggered a cross-default in the credit agreement, and the secured lender has already seized control of Primcogent's cash account and is attempting to control warehouse inventory. Primcogent filed a bare-bones Chapter 11 petition (Bankr. N.D. Tex. Case No. 13-42368) in Ft. Worth, Texas, on May 20, 2013. The petition was signed by David Boris, chairman of board of managers of managing member. The Debtor estimated assets of at least $50 million and debts of at least $10 million. Judge Michael Lynn presides over the case. Jason Napoleon Thelen, Esq.,at Andrews Kurth, LLP, serves as the Debtor's counsel. ORIX is represented by: Robert W. Jones, Esq. Brian Smith, Esq. PATTON BOGGS, LLP 2000 McKinney Avenue, Suite 1700 Dallas, TX 75201 Tel: (214) 758-1500 Fax: (214) 758-1550 Erchonia is represented by: Ira M. Schwartz, Esq. Lawrence D. Hirsh, Esq. DECONCINI McDONALD YETWIN & LACY, P.C. 7310 North 16th Street, Suite 330 Phoenix, AZ 85020 Tel: 602-282-0500 Fax: 602-282-0520 - and - J. Michael Sutherland, Esq. Lisa M. Lucas, Esq. CARRINGTON, COLEMAN, SLOMAN & BLUMENTHAL, LLP 901 Main St., Suite 5500 Dallas, TX 75202 Tel: 214-855-3000 Fax: 214-855-1333 PRIMCOGENT SOLUTIONS: ORIX Says Fort Worth Is Improver Venue ------------------------------------------------------------ ORIX Ventures, LLC, wants the bankruptcy case of Primcogent Solutions, LLC, transferred from the Fort Worth Division to the Dallas Division. ORIX notes the Debtor's court filings indicate an address of 55520 LBJ Freeway, Suite 800, in Dallas. ORIX also points out that the Debtor's principal assets are located in a warehouse in Dallas County, Texas, and the Debtor does not have any material property within other counties. On the Petition Date, the Debtor owed outstanding secured obligations to ORIX, which obligations are secured by liens on substantially all of the Debtor's personal property, including its inventory and accounts receivable. About Primcogent Solutions Primcogent Solutions, LLC, is a supplier and distributor of medical equipment and services in North America. Primcogent operates as the exclusive North American (and, through its European subsidiaries, Western European) seller or distributor of equipment manufactured by Erchonia Corporation, pursuant to exclusive license and supply agreements. Products sold include Erchonia's non-invasive body-contouring laser technology trademarked under the name Zerona(R), including the Zerona Body Laser. Primcogent was formed in late 2011 following the acquisition of the business of Santa Barbara Medical Innovations LLC for $18 million. Although the Erchonia agreement gave Primcogent perpetual rights to sell Erchonia products, Erchonia declared in March 2013 that the agreement has been terminated due to Primcogent's alleged failure to perform and starting that time stopped servicing Primcogent's products. Primcogent, on the other hand, claims Erchonia has committed fraud, breached the agreement and tortiously interfered with Primcogent's business. Primcogent cites, among other things, Erchonia's failure to obtain FDA clearance of Lunula, a laser technology used to treat or cure toe fungus. Primcogent also claims ORIX, its secured lender, is working in concert with Erchonia. A default in the Erchonia agreement triggered a cross-default in the credit agreement, and the secured lender has already seized control of Primcogent's cash account and is attempting to control warehouse inventory. Primcogent filed a bare-bones Chapter 11 petition (Bankr. N.D. Tex. Case No. 13-42368) in Ft. Worth, Texas, on May 20, 2013. The petition was signed by David Boris, chairman of board of managers of managing member. The Debtor estimated assets of at least $50 million and debts of at least $10 million. Judge Michael Lynn presides over the case. Jason Napoleon Thelen, Esq.,at Andrews Kurth, LLP, serves as the Debtor's counsel. ORIX is represented by Robert W. Jones, Esq., and Brian Smith, Esq., at Patton Boggs, LLP. Erchonia is represented by Ira M. Schwartz, Esq., and Lawrence D. Hirsh, Esq., at Deconcini McDonald Yetwin & Lacy, P.C.; and J. Michael Sutherland, Esq., and Lisa M. Lucas, Esq., at Carrington, Coleman, Sloman & Blumenthal, LLP. PROMMIS HOLDINGS: Committee Balks at Cash Collateral Order ---------------------------------------------------------- The Official Committee of Unsecured Creditors last month objected to Prommis Holdings, LLC, et al.'s motion for interim and final authorization to use cash collateral. The Committee asserts that the cash collateral order lacks several important protections and mechanisms commonly granted to creditor constituencies, and requests that the Debtor enter a more reasonable form of order that permits the Debtors the right to use cash collateral in the operation of their business while providing all of their creditor constituencies with appropriate protections provided under the Bankruptcy Code. The Committee notes that the Debtors state that they are indebted to the lenders in the approximate amount of $73,979,885. On April 11, 2013, the Bankruptcy Court signed a stipulation regarding termination events under the agreed interim order authorizing use of cash collateral. The stipulation was entered between the Debtors, and Gleacher Products Corp., in its capacities as administrative agent, first lien collateral agent, second lien collateral agent and third lien collateral agent, on behalf of the lenders party to that certain credit and guaranty agreement dated as of June 12, 2012. About Prommis Holdings Atlanta, Georgia-based Prommis Holdings, LLC, and its 10 affiliates delivered their petitions for voluntary bankruptcy under Chapter 11 of the Bankruptcy Code on March 18, 2013. Judge Brendan Linehan Shannon of the United States Bankruptcy Court District of Delaware presides over the case. The case is assigned Bankruptcy Case No. 13-10551. Steven K. Kortanek, Esq., at Womble Carlyle Sandridge & Rice, LLP, serves as the Debtors' counsel, while Kirkland & Ellis LLP serves as co-counsel. The Debtors' restructuring advisor is Huron Consulting Services, LLC. Donlin Recano & Company, Inc., is the Debtors' claims agent. The petition estimated the lead Debtors' assets to range between $10,000,001 and $50,000,000 and the lead Debtor's debts between $50,000,001 and $100,000,000. The petitions were signed by Charles T. Piper, chief executive officer. PURE BEAUTY: Dismissal of Chapter 11 Case Sought ------------------------------------------------ Pure Beauty Salons & Boutiques, Inc. and BeautyFirst Franchise Corp. and their Official Committee of Unsecured Creditors have filed a joint motion with the U.S. Bankruptcy Court seeking to: a. dismiss the chapter 11 cases of the Debtors, b. dissolve the Debtors' corporate entities; c. direct the purchaser to pay from the Final Wind-Down Reserve the approved professional fees and expenses pursuant to the agreed procedures; and d. granting related relief. In February 2012, Pure Beauty won court approval to sell the business in exchange for debt under a contract largely worked out prepetition. Bill Rochelle, the bankruptcy columnist for Bloomberg News, reported that Regis Corp., the former owner, and an affiliate of a Luborsky family trust, acquired the business in exchange for $18 million in debt held by Regis and the assumption of specified liabilities. The two prospective buyers were involved in the prior Chapter 11 sale. Mr. Rochelle said the creditors' committee won several concessions. The Luborsky trust was to contribute $500,000 in working capital and agreed that two family members won't receive salary until cash flow exceeds $5 million. The buyer agreed in substance not to sue any creditors and assured the committee's professionals they will be paid. In their court papers seeking dismissal, the Debtors and the Committee said they have negotiated, obtained approval of, and consummated the sale of substantially all of the Debtors' assets during the pendency of the cases and no longer have any bases or purpose for continuing the Chapter 11 Cases. In connection with the sale, the purchaser agreed to assume or provide for the payment of a majority of the administrative expense liabilities which have accrued against the Debtors since the Petition Date and certain tax obligations (including those entitled to priority status), thus relieving the Debtors of certain ongoing obligations that would otherwise require these cases to remain open for a significant amount of time. Furthermore, pursuant to the terms of the sale order, the purchaser was granted releases in conjunction therewith, and also acquired any potential causes of action held by the Debtors. At this stage, the Debtors' authority to use cash collateral has terminated, the Debtors have no unencumbered funds available for distribution to creditors, there are no assets of any value which could be liquidated and the Revised Wind-Down Reserve has been exhausted. Accordingly, the Debtors and the Committee said dismissal of the Chapter 11 cases and the dissolution of the Debtors' corporate entities are warranted under the circumstances and in the best interests of the Debtors and their estates. The Debtors and the Committee propose that the Chapter 11 Cases be dismissed following the payment of any then-accrued and unpaid fees to the U.S. Trustee. Counsel to the Creditors Committee can be reached at: Laura Davis Jones, Esq. Bruce Grohsgal, Esq. Bradford J. Sandler, Esq. PACHULSKI STANG ZIEHL & JONES LLP 919 North Market Street, 17th Floor P.O. Box 8705 Wilmington, DE Tel: (302) 652-4100 About Pure Beauty Pure Beauty Salons & Boutiques, Inc., and its affiliated company BeautyFirst Franchise Corp., operate a chain of hair care and beauty supply stores under the trade names Trade Secret, Beauty Express, BeautyFirst, PureBeauty, and Winston's Barber Shop. Pure Beauty Salons & Boutiques, Inc. operates and/or owns 436 stores and BeautyFirst Franchise Corp. has agreements with 13 franchisees that operate 22 BeautyFirst and 7 Trade Secret Stores. Pure Beauty Salons & Boutiques, Inc., is back in Chapter 11 after having been sold out of Chapter 11 last year. The prior case was dismissed after the sale was completed. The previous case was In re Trade Secret Inc., 10-12153, in the same court. Pure Beauty Salons filed for bankruptcy (Bankr. D. Del. Case No. 11-13159) on Oct. 4, 2011. Affiliate BeautyFirst Franchise Corp. filed a separate petition (Bankr. D. Del. Case No. 11-13160). Joseph M. Barry, Esq., Kenneth J. Enos, Esq., and Ryan M. Bartley, Esq., at Young Conaway Stargatt & Taylor, LLP, serve as the Debtors' counsel. The Debtors' investment banker is SSG Capital Advisors' J. Scott Victor. The Debtors' notice, claims solicitation, and balloting agent is Epiq Bankruptcy Solutions. In its schedules, Pure Beauty Salons disclosed $36,444,963 in assets and $55,215,590 in liabilities as of the Petition Date. In its schedules, BeautyFirst Franchise disclosed $1,716,985 in assets and $36,761,086 in liabilities as of the Petition Date. The Debtors owe $15 million to vendors and landlords. The petition was signed by Brian Luborsky, chief executive officer. Roberta A. DeAngelis, the U.S. Trustee for Region 3, appointed seven unsecured creditors to serve on the Official Committee of Unsecured Creditors of Pure Beauty Salons. Attorneys at Pachulski Stang Ziehl & Jones LLP represent the Committee. LM+Co serves as their financial advisor. Secured lender Regis Corp. is represented in the case by Michael L. Meyer, Esq., at Ravich Meyer Kirkman McGrath Nauman & Tansey P.A., and Kathleen M. Miller, Esq., at Smith Katzenstein & Furlow LLP. RAPID-AMERICAN CORP: Meeting of Creditors Scheduled for June 4 -------------------------------------------------------------- The U.S. Trustee for Region 2 will convene a meeting of creditors in Rapid-American Corp.'s Chapter 11 case on June 4, 2013, at 2:30 p.m. The meeting will be held at the Office of the U.S. Trustee, at 80 Broad Street, 4th Floor, New York City. 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 Rapid-American Corp. Rapid-American Corp. filed for bankruptcy protection in Manhattan (Bankr. S.D.N.Y. Case No. 13-10687) on March 8, 2013, to deal with debt related to asbestos personal-injury claims. New York-based Rapid-American was formerly a holding company with subsidiaries primarily engaged in retail sales and consumer products and was never engaged in an asbestos business of any kind. Through a series of merger transactions going back more than 45 years, Rapid has nevertheless incurred successor liability for personal injury claims arising from plaintiffs' exposure to asbestos-containing products sold by The Philip Carey Manufacturing Company -- Old Carey -- as that entity existed prior to June 1, 1967. Attorneys at Reed Smith LLP serve as counsel to the Debtor. Logan & Company, Inc., as claims and noticing agent. The Debtor disclosed $4,446,261 in assets at unknown liabilities as of the Chapter 11 filing. Tracy Hope Davis, the U.S. Trustee for Region 2, late last month appointed five members to the Official Committee of Unsecured Creditors in Reed Smith LLP's Chapter 11 case. The Official Committee of Unsecured Creditors in the Chapter 11 case of Rapid-American Corp. seeks authorization from the Hon. Stuart M. Bernstein of the U.S. Bankruptcy Court of the Southern District of New York to retain Caplin & Drysdale, Chartered, as counsel. RESIDENTIAL CAPITAL: Court Dismisses "Flores" Lawsuit ----------------------------------------------------- District Judge Susan Illston dismissed, with prejudice, the lawsuit PANFILO FLORES, JR., Plaintiff, v. GMAC MORTGAGE, LLC, ET AL., Defendants, Case No. C 12-794 SI (N.D. Cal.) in a May 14, 2013 Order available at http://is.gd/IIoh9Lfrom Leagle.com. The lawsuit stems from a $625,000 mortgage loan obtained by plaintiff Irene Flores from MIT Lending on June 21, 2005, which loan was secured by a deed of trust on a real property at 883 Skyline Drive, in Daly City, California. Mortgage Electronic Registration Systems, Inc. (MERS) was the beneficiary under the deed of trust and Alliance Title was the original trustee. In January 2010, MERS substituted in Executive Trustee Services (ETS) as the new trustee. ETS signed a notice of default, recorded on Jan. 27, 2010, which informed the plaintiff that she owed $16,955 in arrears as of Jan. 25, 2010. On Nov. 11, 2010, MERS assigned all beneficial interests under the deed of trust to GMAC. ETS recorded a notice of trustee's sale in May 2011. GMAC then purchased the property on Nov. 2, 2011. In October 2011, co-plaintiff Panfilo Flores -- who is not a signatory to the mortgage loan -- filed for Chapter 11 bankruptcy, which plaintiffs allege effectuated an automatic stay of the foreclosure sale. Plaintiffs filed the lawsuit on Feb. 17, 2012, asserting seven causes of action: (1) declaratory relief; (2) injunctive relief; (3) cancellation of instruments; (4) deceit; (5) violation of Cal. Civ. Code Sec. 2943(A)(1)(A); (6) fraud; and (7) unjust enrichment. Plaintiffs assert that none of the defendants has standing to initiate foreclosure, or standing to request that plaintiffs repay the loan. On review, Judge Illston opined that the lawsuit is premised on the flawed theory that "none of the defendants has the authority to institute a nonjudicial foreclosure, because the mortgage loan was securitized and sold on the secondary mortgage market without a valid assignment of the note and deed of trust from the original lender to any of the defendants." The judge said, "contrary to plaintiffs' contention, the alleged securitization here did not invalidate MERS' assignment or substitution or extinguish its rights to do so. Even if it did, plaintiffs do not have standing to sue based on that deficient assignment or substitution. Having concluded as much, the Court finds that leave to amend here would be futile where plaintiffs will not be able to establish standing based on their core allegations. Finally, to the extent plaintiff seeks to 'unwind a foreclosure,' those allegations and any claims therein are moot because GMAC rescinded the sale on January 26, 2012, weeks prior to this lawsuit." RG STEEL: to Sell Real Property to Go Green for $500,000 -------------------------------------------------------- RG Steel Wheeling LLC said it is planning to sell some of its assets to Go Green America Recycling LLC for $500,000. The assets to be sold consist of RG Steel's rights, title and interest in and to a real property located in Follansbee, West Virginia. Objections to the proposed sale must be filed on or before June 7. About RG Steel RG Steel LLC -- http://www.rg-steel.com/-- is the United States' fourth-largest flat-rolled steel producer with annual steelmaking capacity of 7.5 million tons. It was formed in March 2011 following the purchase of three steel facilities located in Sparrows Point, Maryland; Wheeling, West Virginia and Warren, Ohio, from entities related to Severstal US Holdings LLC. RG Steel also owns finishing facilities in Yorkville and Martins Ferry, Ohio. It also owned Wheeling Corrugating Company and has a 50% ownership in Mountain State Carbon and Ohio Coatings Company. RG Steel along with affiliates, including WP Steel Venture LLC, sought bankruptcy protection (Bankr. D. Del. Lead Case No. 12-11661) on May 31, 2012. Bankruptcy was precipitated by liquidity shortfall and a dispute with Mountain State Carbon, LLC, and a Severstal affiliate, that restricted the shipment of coke used in the steel production process. The Debtors estimated assets and debts in excess of $1 billion. As of the bankruptcy filing, the Debtors owe (i) $440 million, including $16.9 million in outstanding letters of credit, to senior lenders led by Wells Fargo Capital Finance, LLC, as administrative agent, (ii) $218.7 million to junior lenders, led by Cerberus Business Finance, LLC, as agent, (iii) $130.5 million on account of a subordinated promissory note issued by majority owner The Renco Group, Inc., and (iv) $100 million on a secured promissory note issued by Severstal. Judge Kevin J. Carey presides over the case. The Debtors are represented in the case by Robert J. Dehney, Esq., and Erin R. Fay, Esq., at Morris, Nichols, Arsht & Tunnell LLP, and Matthew A. Feldman, Esq., Shaunna D. Jones, Esq., Weston T. Eguchi, Esq., at Willkie Farr & Gallagher LLP, represent the Debtors. Conway MacKenzie, Inc., serves as the Debtors' financial advisor and The Seaport Group serves as lead investment banker. Donald MacKenzie of Conway MacKenzie, Inc., as CRO. Kurtzman Carson Consultants LLC is the claims and notice agent. Wells Fargo Capital Finance LLC, as Administrative Agent, is represented by Jonathan N. Helfat, Esq., and Daniel F. Fiorillo, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C.; and Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachuiski Stang Ziehi & Jones LLP. Renco Group is represented by lawyers at Cadwalader, Wickersham & Taft LLP. Kramer Levin Naftalis & Frankel LLP represents the Official Committee of Unsecured Creditors. Huron Consulting Services LLC serves as the Committee's financial advisor. The Debtor has sold off the principal plants. The sale of the Wheeling Corrugating division to Nucor Corp. brought in $7 million. That plant in Sparrows Point, Maryland, fetched the highest price, $72.5 million. CJ Betters Enterprises Inc. paid $16 million for the Ohio plant. RG STEEL: Unsecured Creditors Fight Rennert, Goodwin Objections --------------------------------------------------------------- RG Steel LLC's official committee of unsecured creditors asked U.S. Bankruptcy Judge Kevin Carey to overrule objections to its bid to sue top officials of the company and Renco Group Inc. Last month, Ira Rennert, chairman and owner of Renco, and RG Steel CEO Vincent Goodwin opposed the unsecured creditors' motion to sue them for allegedly breaching their fiduciary duties to the steel maker. In a May 24 filing, the unsecured creditors' committee said it should be allowed to file a complaint because it is the only "unconflicted fiduciary" that can pursue claims in place of RG Steel. "The debtors, controlled by the proposed defendants are inherently conflicted and have predictably refused to pursue the claims," the committee said. The committee also said "colorable claims" exist that may provide a recovery in excess of $238 million, and that the claims are the only potential source of recovery for unsecured creditors. The two officials were accused of delaying RG Steel's bankruptcy filing to allow Renco to sell its ownership stake and avoid the steel maker's pension obligations. Renco sold a portion of its ownership stake in RG Steel before the steel maker filed for Chapter 11 protection in May 2012. Ownership of 80% or more in RG Steel would have made Renco responsible for the steel maker's pension plans. The sale of Renco's ownership stake left RG Steel saddled with millions of debt, according to the committee which seeks to recover more than $238 million in damages. About RG Steel RG Steel LLC -- http://www.rg-steel.com/-- is the United States' fourth-largest flat-rolled steel producer with annual steelmaking capacity of 7.5 million tons. It was formed in March 2011 following the purchase of three steel facilities located in Sparrows Point, Maryland; Wheeling, West Virginia and Warren, Ohio, from entities related to Severstal US Holdings LLC. RG Steel also owns finishing facilities in Yorkville and Martins Ferry, Ohio. It also owned Wheeling Corrugating Company and has a 50% ownership in Mountain State Carbon and Ohio Coatings Company. RG Steel along with affiliates, including WP Steel Venture LLC, sought bankruptcy protection (Bankr. D. Del. Lead Case No. 12-11661) on May 31, 2012. Bankruptcy was precipitated by liquidity shortfall and a dispute with Mountain State Carbon, LLC, and a Severstal affiliate, that restricted the shipment of coke used in the steel production process. The Debtors estimated assets and debts in excess of $1 billion. As of the bankruptcy filing, the Debtors owe (i) $440 million, including $16.9 million in outstanding letters of credit, to senior lenders led by Wells Fargo Capital Finance, LLC, as administrative agent, (ii) $218.7 million to junior lenders, led by Cerberus Business Finance, LLC, as agent, (iii) $130.5 million on account of a subordinated promissory note issued by majority owner The Renco Group, Inc., and (iv) $100 million on a secured promissory note issued by Severstal. Judge Kevin J. Carey presides over the case. The Debtors are represented in the case by Robert J. Dehney, Esq., and Erin R. Fay, Esq., at Morris, Nichols, Arsht & Tunnell LLP, and Matthew A. Feldman, Esq., Shaunna D. Jones, Esq., Weston T. Eguchi, Esq., at Willkie Farr & Gallagher LLP, represent the Debtors. Conway MacKenzie, Inc., serves as the Debtors' financial advisor and The Seaport Group serves as lead investment banker. Donald MacKenzie of Conway MacKenzie, Inc., as CRO. Kurtzman Carson Consultants LLC is the claims and notice agent. Wells Fargo Capital Finance LLC, as Administrative Agent, is represented by Jonathan N. Helfat, Esq., and Daniel F. Fiorillo, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C.; and Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachuiski Stang Ziehi & Jones LLP. Renco Group is represented by lawyers at Cadwalader, Wickersham & Taft LLP. Kramer Levin Naftalis & Frankel LLP represents the Official Committee of Unsecured Creditors. Huron Consulting Services LLC serves as the Committee's financial advisor. The Debtor has sold off the principal plants. The sale of the Wheeling Corrugating division to Nucor Corp. brought in $7 million. That plant in Sparrows Point, Maryland, fetched the highest price, $72.5 million. CJ Betters Enterprises Inc. paid $16 million for the Ohio plant. RHYTHM & HUES: Rust Consulting Approved as Noticing & Claims Agent ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Central District of California authorized Rhythm and Hues, Inc., to employ Rust Consulting Omni Bankruptcy, a division of Rust Consulting Inc., as noticing, claims and balloting agent for clerk of the Bankruptcy Court. Rhythm and Hues, Inc., aka Rhythm and Hues Studios Inc., filed its Chapter 11 petition (Bankr. C.D. Cal. Case No. 13-13775) in Los Angeles on Feb. 13, 2013, estimating assets ranging from $10 million to $50 million and liabilities ranging from $50 million to $100 million. Judge Neil W. Bason oversees the case. Brian L. Davidoff, Esq., C. John M Melissinos, Esq., and Claire E. Shin, Esq., at Greenberg Glusker, serve as the Debtor's counsel. Houlihan Lokey Capital Inc., serves as investment banker. The petition was signed by John Patrick Hughes, president and CFO. R&H provided visual effects and animation for more than 150 feature films and has received Academy Awards for Babe and the Golden Compass, an Academy Award nomination for The Chronicles of Narnia and Life of Pi. R&H owned a 135,000 square-foot facility in El Segundo, California, and had more than 460 employees. Key clients Universal City Studios LLC and Twentieth Century Fox, a division of Twentieth Century Fox Film Corporation, provided DIP financing. They are represented by Jones Day's Richard L. Wynne, Esq., and Lori Sinanyan, Esq. The Official Committee of Unsecured Creditors tapped Stutman, Treister & Glatt Professional Corporation as its counsel. ROCKWELL MEDICAL: Underwriters Buy Add'l 1.7MM Common Shares ------------------------------------------------------------ Rockwell Medical, Inc., said that the underwriters of its recently announced public offering have exercised their over-allotment option to purchase an additional 1,721,311 shares of its common stock at the offering price of $3.05. The Company expects to realize net proceeds of approximately $5 million after deducting underwriter's discounts. The net proceeds of the offering will be used to fund SFP clinical trials and for other general corporate purposes. Chardan Capital Markets, LLC, is acting as the sole book-running manager for the offering. Summer Street Research Partners is acting as lead manager for the offering. C&Co/PrinceRidge LLC is acting as co-manager for the offering. A shelf registration statement relating to these securities was previously filed with, and declared effective by, the Securities and Exchange Commission. A final prospectus supplement related to the offering was filed with the Securities and Exchange Commission on May 15, 2013. Copies of the final prospectus supplement and accompanying prospectus relating to the offering may be obtained by contacting Chardan Capital Markets LLC, Attention: Scott Blakeman, Director of Operations, 17 State Street, Suite 1600, New York, NY 10004, or by calling (646) 465-9025. An electronic copy of the final prospectus supplement and accompanying prospectus relating to the offering are available on the Web site of the Securities and Exchange Commission at www.sec.gov. About Rockwell Rockwell Medical, Inc. (Nasdaq: RMTI), headquartered in Wixom, Michigan, is a fully-integrated biopharmaceutical company targeting end-stage renal disease ("ESRD") and chronic kidney disease ("CKD") with innovative products and services for the treatment of iron deficiency, secondary hyperparathyroidism and hemodialysis (also referred to as "HD" or "dialysis"). Rockwell's lead investigational drug is in late stage clinical development for iron therapy treatment in CKD-HD patients. It is called Soluble Ferric Pyrophosphate ("SFP"). SFP delivers iron to the bone marrow in a non-invasive, physiologic manner to hemodialysis patients via dialysate during their regular dialysis treatment. In its report on the consolidated financial statements for the year ended Dec. 31, 2012, Plante & Moran, PLLC, in Clinton Township, Michigan, expressed substantial doubt about Rockwell Medical's ability to continue as a going concern, citing the Company's recurring losses from operations, negative working capital, and insufficient liquidity. The Company reported a net loss of $54.0 million on $49.8 million of sales in 2012, compared with a net loss of $21.4 million on $49.0 million of sales in 2011. The Company's balance sheet at Dec. 31, 2012, showed $17.0 million in total assets, $27.0 million in total current liabilities, and a stockholders' deficit of $10.0 million. RODEO CREEK: Wins Approval of Key Employee Retention Plan --------------------------------------------------------- The U.S. Bankruptcy Court for the District of Nevada authorized Rodeo Creek Gold Inc. to implement a key employee retention plan. As reported by the Troubled Company Reporter on April 18, 2013, the Debtor sought permission to implement a KERP estimated to cost $440,000 to assist them in retaining a select group of key employees necessary to maintain business operations and to fulfill their obligations while they work to maximize the value of their estates through a successful asset sale. Participants in the KERP will include approximately 20 employees of the Debtors' Nevada operations, none of whom are insiders. The KERP provides a retention bonus of 15% of each KERP Participant's annual base salary, with the exception of one KERP Participant whose KERP Bonus will equal 30% of that KERP Participant's annual base salary. According to the Debtors, the KERP Bonus will replace their Prepetition Bonus Programs for the second quarter of 2013. The Debtors clarify that for the second quarter of 2013, the KERP Participants will not receive both the KERP Bonus and the bonuses that the KERP Participants were previously expecting to receive under the Prepetition Bonus Programs. The Debtors said the KERP Bonuses will be payable upon consummation of the Sale, and if a Sale does not occur, no KERP Bonuses will be paid. If a KERP Participant resigns, retires, or otherwise voluntarily terminates his or her employment or is terminated by the Debtors for cause prior to the consummation of the Sale, that KERP Participant will forfeit any KERP Bonus. About Rodeo Creek and Great Basin Canada-based The Great Basin Gold Ltd and its subsidiaries are engaged in the exploration, development, and operation of high- quality gold properties. The GBG Group's primary projects are a trial mine and a recently constructed start-up mine, both of which are located in rich gold-producing regions: the Hollister trial mine in Nevada and the Burnstone start-up mine in South Africa. The GBG Group also holds interests in early-stage mineral prospects located in Canada and Mozambique. On Sept. 18, 2012, the GBG Group's primary South African operating subsidiary and owner of the Burnstone Start-up Mine, Southgold Exploration (Pty) Ltd., commenced business rescue proceedings under chapter 6 of the South African Companies Act, 2008. On Sept. 19, 2012, Great Basin Gold Ltd., the ultimate parent company, applied for protection from its creditors in Canada pursuant to the Companies' Creditors Arrangement Act, R.S.C. 1985, c. C-36 in the Supreme Court of British Columbia Vancouver Registry. GBG arranged -- and the U.S. debtors cross-guaranteed -- DIP financing from Credit Suisse and Standard Chartered Bank in the amount of $51 million, of which $10 million was made available to the U.S. subsidiaries and $25 million for South Africa. On Feb. 25, 2013, Rodeo Creek Gold Inc., which operates and owns the Hollister Trial-Mine, along with other U.S. subsidiaries of Great Basin, filed petitions for Chapter 11 protection (Bankr. D. Nev. Case No. 13-50301), in Reno, Nevada, as cash ran out before they could complete the sale of the mine. Rodeo Creek estimated assets worth less than $100 million and debt in excess of $100 million. Credit Suisse is the agent under the Debtors' secured prepetition credit facilities: (i) the Existing Hollister Credit Facility, under which the Debtors had $52.5 million outstanding at the end of 2012 and (ii) the Canadian DIP Facility, under which the Debtors had guaranteed $35 million outstanding as of the Petition Date. The Debtors also had $13.5 million in outstanding trade debt, in addition to certain intercompany obligations. A three-member Official Committee of Unsecured Creditors, composed of Quality Transportation Inc., Prometheus Energy Group, Inc., and F & H Mine Supply, was appointed in the Debtors' Chapter 11 cases. The Committee is represented by Pachulski Stang Ziehl & Jones LLP as counsel, Armstrong Teasdale LLP as its local Nevada counsel, and BDO Consulting as its financial advisor. RODEO CREEK: Committee Can Retain Armstrong Teasdale as Counsel --------------------------------------------------------------- The Bankruptcy Court authorized the Official Committee of Unsecured Creditors in the Chapter 11 case of Rodeo Creek Gold Inc., to retain Armstrong Teasdale LLP as its counsel. In a separate filing, the Court also authorized the Committee to retain Pachulski Stang Ziehl & Jones LLP as its counsel. To the best of the Committee's knowledge, Armstrong Teasdale and Pachulski are "disinterested" as that term is defined under Section 101(14) of the Bankruptcy Code. About Rodeo Creek and Great Basin Canada-based The Great Basin Gold Ltd and its subsidiaries are engaged in the exploration, development, and operation of high- quality gold properties. The GBG Group's primary projects are a trial mine and a recently constructed start-up mine, both of which are located in rich gold-producing regions: the Hollister trial mine in Nevada and the Burnstone start-up mine in South Africa. The GBG Group also holds interests in early-stage mineral prospects located in Canada and Mozambique. On Sept. 18, 2012, the GBG Group's primary South African operating subsidiary and owner of the Burnstone Start-up Mine, Southgold Exploration (Pty) Ltd., commenced business rescue proceedings under chapter 6 of the South African Companies Act, 2008. On Sept. 19, 2012, Great Basin Gold Ltd., the ultimate parent company, applied for protection from its creditors in Canada pursuant to the Companies' Creditors Arrangement Act, R.S.C. 1985, c. C-36 in the Supreme Court of British Columbia Vancouver Registry. GBG arranged -- and the U.S. debtors cross-guaranteed -- DIP financing from Credit Suisse and Standard Chartered Bank in the amount of $51 million, of which $10 million was made available to the U.S. subsidiaries and $25 million for South Africa. On Feb. 25, 2013, Rodeo Creek Gold Inc., which operates and owns the Hollister Trial-Mine, along with other U.S. subsidiaries of Great Basin, filed petitions for Chapter 11 protection (Bankr. D. Nev. Case No. 13-50301), in Reno, Nevada, as cash ran out before they could complete the sale of the mine. Rodeo Creek estimated assets worth less than $100 million and debt in excess of $100 million. Credit Suisse is the agent under the Debtors' secured prepetition credit facilities: (i) the Existing Hollister Credit Facility, under which the Debtors had $52.5 million outstanding at the end of 2012 and (ii) the Canadian DIP Facility, under which the Debtors had guaranteed $35 million outstanding as of the Petition Date. The Debtors also had $13.5 million in outstanding trade debt, in addition to certain intercompany obligations. A three-member Official Committee of Unsecured Creditors, composed of Quality Transportation Inc., Prometheus Energy Group, Inc., and F & H Mine Supply, was appointed in the Debtors' Chapter 11 cases. The Committee is represented by Pachulski Stang Ziehl & Jones LLP as counsel, Armstrong Teasdale LLP as its local Nevada counsel, and BDO Consulting as its financial advisor. RODEO CREEK: Panel Can Retain BDO Consulting as Financial Advisors ------------------------------------------------------------------ The Bankruptcy Court authorized the Official Committee of Unsecured Creditors in the Chapter 11 case of Rodeo Creek Gold, Inc., to retain BDO Consulting, a division of BDO USA, LLP, as its financial advisors. To the best of the Committee's knowledge, BDO is a "disinterested person" as that term is defined under Section 101(14) of the Bankruptcy Code. About Rodeo Creek and Great Basin Canada-based The Great Basin Gold Ltd and its subsidiaries are engaged in the exploration, development, and operation of high- quality gold properties. The GBG Group's primary projects are a trial mine and a recently constructed start-up mine, both of which are located in rich gold-producing regions: the Hollister trial mine in Nevada and the Burnstone start-up mine in South Africa. The GBG Group also holds interests in early-stage mineral prospects located in Canada and Mozambique. On Sept. 18, 2012, the GBG Group's primary South African operating subsidiary and owner of the Burnstone Start-up Mine, Southgold Exploration (Pty) Ltd., commenced business rescue proceedings under chapter 6 of the South African Companies Act, 2008. On Sept. 19, 2012, Great Basin Gold Ltd., the ultimate parent company, applied for protection from its creditors in Canada pursuant to the Companies' Creditors Arrangement Act, R.S.C. 1985, c. C-36 in the Supreme Court of British Columbia Vancouver Registry. GBG arranged -- and the U.S. debtors cross-guaranteed -- DIP financing from Credit Suisse and Standard Chartered Bank in the amount of $51 million, of which $10 million was made available to the U.S. subsidiaries and $25 million for South Africa. On Feb. 25, 2013, Rodeo Creek Gold Inc., which operates and owns the Hollister Trial-Mine, along with other U.S. subsidiaries of Great Basin, filed petitions for Chapter 11 protection (Bankr. D. Nev. Case No. 13-50301), in Reno, Nevada, as cash ran out before they could complete the sale of the mine. Rodeo Creek estimated assets worth less than $100 million and debt in excess of $100 million. Credit Suisse is the agent under the Debtors' secured prepetition credit facilities: (i) the Existing Hollister Credit Facility, under which the Debtors had $52.5 million outstanding at the end of 2012 and (ii) the Canadian DIP Facility, under which the Debtors had guaranteed $35 million outstanding as of the Petition Date. The Debtors also had $13.5 million in outstanding trade debt, in addition to certain intercompany obligations. A three-member Official Committee of Unsecured Creditors, composed of Quality Transportation Inc., Prometheus Energy Group, Inc., and F & H Mine Supply, was appointed in the Debtors' Chapter 11 cases. The Committee is represented by Pachulski Stang Ziehl & Jones LLP as counsel, Armstrong Teasdale LLP as its local Nevada counsel, and BDO Consulting as its financial advisor. RODEO CREEK: Sale Proceeds to Fund Chapter 11 Plan Payments ----------------------------------------------------------- Rodeo Creek Gold Inc. submitted to the U.S. Bankruptcy Court for the District of Nevada a Disclosure Statement explaining the Joint Plan of Liquidation dated April 29, 2013. According to the Disclosure Statement, the Plan embodies a settlement between the Official Committee of Unsecured Creditors and Credit Suisse AG, in its capacity as agent under the Existing Hollister Facility, the Canadian DIP Facility, and the DIP Facility). The salient points and key features of the Committee Settlement are: * The establishment of a $1 million cash fund in a separate trust account designed by the Committee, subject to certain increases, for the benefit of unsecured creditors; * The Committee's agreement to waive any right to challenge the claims and liens in connections with the Existing Hollister Facility and the Canadian DIP Facility; * The proposal of a Chapter 11 plan of liquidation to distribute the Sale Proceeds and wind down the affairs of the Debtors; * The establishment of a Liquidation Trust and appointment of a Liquidation Trustee to administer the GUC Trust Fund and prosecute Avoidance Actions, D&O Claims and the Other Causes of Actions; and * The agreement to share the Net Avoidance Action Proceeds 80% and 20%, respectively, by holders of General Unsecured Claims and the Debtors' lenders. The Plan also contemplates that holders of Allowed Class 5 General Unsecured Claims will receive their Pro Rata Share of the GUC Trust Fund, which includes the $1 million in the GUC Trust Fund (including any GUC Trust Fund Top-Off Amount and any Essential Vendor Adjustment) plus certain proceeds of the Avoidance Actions, the D&O Claims, and the Other Causes of Actions. Copies of the Disclosure Statements are available for free at: http://bankrupt.com/misc/RODEO_CREEK_ds.pdf http://bankrupt.com/misc/RODEO_CREEK_ds_b.pdf About Rodeo Creek and Great Basin Canada-based The Great Basin Gold Ltd and its subsidiaries are engaged in the exploration, development, and operation of high- quality gold properties. The GBG Group's primary projects are a trial mine and a recently constructed start-up mine, both of which are located in rich gold-producing regions: the Hollister trial mine in Nevada and the Burnstone start-up mine in South Africa. The GBG Group also holds interests in early-stage mineral prospects located in Canada and Mozambique. On Sept. 18, 2012, the GBG Group's primary South African operating subsidiary and owner of the Burnstone Start-up Mine, Southgold Exploration (Pty) Ltd., commenced business rescue proceedings under chapter 6 of the South African Companies Act, 2008. On Sept. 19, 2012, Great Basin Gold Ltd., the ultimate parent company, applied for protection from its creditors in Canada pursuant to the Companies' Creditors Arrangement Act, R.S.C. 1985, c. C-36 in the Supreme Court of British Columbia Vancouver Registry. GBG arranged -- and the U.S. debtors cross-guaranteed -- DIP financing from Credit Suisse and Standard Chartered Bank in the amount of $51 million, of which $10 million was made available to the U.S. subsidiaries and $25 million for South Africa. On Feb. 25, 2013, Rodeo Creek Gold Inc., which operates and owns the Hollister Trial-Mine, along with other U.S. subsidiaries of Great Basin, filed petitions for Chapter 11 protection (Bankr. D. Nev. Case No. 13-50301), in Reno, Nevada, as cash ran out before they could complete the sale of the mine. Rodeo Creek estimated assets worth less than $100 million and debt in excess of $100 million. Credit Suisse is the agent under the Debtors' secured prepetition credit facilities: (i) the Existing Hollister Credit Facility, under which the Debtors had $52.5 million outstanding at the end of 2012 and (ii) the Canadian DIP Facility, under which the Debtors had guaranteed $35 million outstanding as of the Petition Date. The Debtors also had $13.5 million in outstanding trade debt, in addition to certain intercompany obligations. A three-member Official Committee of Unsecured Creditors, composed of Quality Transportation Inc., Prometheus Energy Group, Inc., and F & H Mine Supply, was appointed in the Debtors' Chapter 11 cases. The Committee is represented by Pachulski Stang Ziehl & Jones LLP as counsel, Armstrong Teasdale LLP as its local Nevada counsel, and BDO Consulting as its financial advisor. ROSELAND VILLAGE: Hearing on Competing Plan Outlines on July 8 -------------------------------------------------------------- The Bankruptcy Court will consider confirmation of competing plans for Roseland Village, LLC, and G.B.S. Holding, Ltd. commencing on July 8, 2013, at 10 a.m. As reported by the Troubled Company Reporter on May 2, 2013, the Court approved the disclosure statement explaining Roseland Village and G.B.S. Holding's plan of reorganization. The Debtors' Second Modified Plan contemplates the modification of existing proffers that are required by the Roseland Village approved zoning. After final approval of the rezoning, the Debtors will market the entire assemblage or each parcel to obtain the highest and best price that the market will bear. If the Debtors cannot procure an offer that is acceptable to the secured creditor that has a lien on a parcel during the marketing phase, then the Debtors will convey to that creditor title to its collateral. A full-text copy of the Debtors' Second Amended Plan dated March 6, 2013, is available for free at: http://bankrupt.com/misc/ROSELANDds0306.pdf Creditor Miller and Smith Advisory Group LLC has filed a competing plan of reorganization that proposes to develop Roseland Village as a single planned community to be funded using a combination of third-party debt financing and equity financing. Under the Miller Smith Plan, holders of secured claims has three options: * Secured Claimant Option A: The secured creditor will be paid within 30 days of the Project Commencement Date an amount equal to 40% of its Allowed Secured Claim. * Secured Claimant Option B: Twenty-five percent of its Allowed Secured Claim will be waived on the Project Commencement Date and will receive no Distributions; (b) the remaining 75% of its Allowed Secured Claim will be paid as follows: (i) 25% of the Residual Secured Claim will be paid within 30 days of the Project Commencement Date; (ii) 75% of the Residual Secured Claim will be paid quarterly. * Secured Claimant Option C: One hundred percent of its Allowed Secured Claim will be paid quarterly, on a Pro Rata basis with all other holders of Allowed Secured Claims from funds deposited into the Final Development Fund. Holders of Allowed Unsecured Claims will elect one of the following two options: * Unsecured Claimant Option A: The unsecured creditor will receive an amount equal to 25% of the claimant's Allowed Unsecured Claim, without interest, within 30 days of the Project Commencement Date. * Unsecured Claimant Option B: The unsecured creditor will receive quarterly Pro Rata Distributions from the Final Development Fund after the payment in full, with interest. After the payment in full of all Allowed Administrative Expense Claims, all Allowed Secured and Unsecured Claims, Insider Unsecured Claims will receive pro rata distributions, not to exceed 100% of the Allowed Claims, with interest at the applicable rate. Holders of Allowed Equity Interests will retain their Interests, but will receive no distributions under the Plan. A full-text copy of Miller Smith's Disclosure Statement dated April 17, 2013, is available for free at: http://bankrupt.com/misc/ROSELANDds0417.pdf Counsel to Miller and Smith Advisory Group is: Lawrence A. Katz, Esq. LEACH TRAVELL BRITT PC 8270 Greensboro Drive, Suite 700 Tysons Corner, VA 22102 Email: lkatz@ltblaw.com Telephone: (703) 584-8362 Facsimile: (703) 584-8901 About GBS Holding Based in Midlothian, Virginia, G.B.S. Holding, Ltd., filed for Chapter 11 (Bankr. E.D. Va. Case No. 11-33708) on June 3, 2011. Chief Judge Douglas O. Tice Jr. presides over the case. Bruce E. Arkema, Esq., and Kevin J. Funk, Esq., at DurretteCrump PLC, serve as the Debtor's bankruptcy counsel. G.B.S. disclosed $42,950,000 in assets and $38,208,142 in liabilities as of the Chapter 11 filing. The petition was signed by George B. Sowers, Jr., president, who serves as G.B.S.'s designee pursuant to a court order. Affiliate Roseland Village, LLC, filed for Chapter 11 (Bankr. E.D. Va. Case No. 11-30223) on Jan. 13, 2011. G.B.S. Holding, Ltd., owns 50% of Roseland Village, LLC. DurretteCrump also represents Roseland Village. Roseland Village and GBS jointly own 1,288+/- acres adjoining each other that are jointly part of a larger assemblage of land, known as Roseland, which has been given approval from Chesterfield County as a Master Planned Development consisting of more than 1.5 million square feet of commercial space and more than 5,600 housing units. Roseland consists of 29 separate parcels that were acquired over a nine-year period. The property is located south of Route 288 at its intersection with Woolridge Road. Development of the assembled parcel will take place in some cases without regard to the property lines of the original 29 parcels that comprise the land titled to GBS and Roseland Village. ROTECH HEALTHCARE: Creditors Panel Taps Buchanan Ingersoll ---------------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 cases of Rotech Healthcare Inc., et al., asks the U.S. Bankruptcy Court for the District of Delaware for permission to retain Buchanan Ingersoll & Rooney PC as its Delaware counsel. The hourly rates of Buchanan Ingersoll personnel are: Mary F. Caloway, shareholder $570 Kathleen A. Murphy, associate $320 Tammy R. Rogers, paralegal $155 To the best of the Committee's knowledge, Buchanan Ingersoll does not have any interest adverse to the Committee. A June 13, 2013, hearing at 11 a.m., has been set. Objections, if any are due May 30. 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. On April 8, 2013, Rotech Healthcare and 114 subsidiary companies filed petitions seeking relief under chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 13-10741) to implement a pre- arranged plan negotiated with secured lenders. Attorneys at Proskauer Rose LLP, and Young, Conaway, Stargatt & Taylor serve as counsel to the Debtors; Foley & Lardner LLP is the healthcare regulatory counsel; Akin Gump Strauss Hauer & Feld LLP is the special healthcare regulatory counsel; Barclays Capital Inc. is the financial advisor; Alix Partners, LLP is the restructuring advisor; and Epiq Bankruptcy Solutions LLC is the claims agent. Prepetition term loan lender and DIP lender Silver Point Capital and other consenting noteholders are represented by Wachtell, Lipton, Rosen & Katz, and Richards Layton & Finger PA. The U.S. Trustee at the end of April appointed an official committee of equity holders. Members include Alden Global Recovery Master Fund LP, Varana Capital Master LP, Wynnefield Partners Small Cap Value LP I, Bastogne Capital Partners, LP, and Kenneth S. Grossman P.C. Pension Plan. The plan is supported by holders of a majority of the first- and second-lien secured notes. The $290 million in 10.5 percent second-lien notes are to be exchanged for the new equity. Trade suppliers are to be paid in full, if they agree to continue providing credit. The existing $23.5 million term loan would be paid in full, and the $230 million in 10.75 percent first-lien notes will be amended. The Official Committee of Unsecured Creditors tapped Grant Thornton LLP as its financial advisor, and Buchanan Ingersoll & Rooney PC as its Delaware counsel. ROTECH HEALTHCARE: Panel Taps Grant Thornton as Financial Advisor ----------------------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 cases of Rotech Healthcare Inc., et al., asks the U.S. Bankruptcy Court for the District of Delaware for permission to retain Grant Thornton LLP as its financial advisor. Grant Thornton will, among other things: -- assist the Committee in the analysis of the current financial position of the Debtors; -- attend and advise at meeting/calls with the Committee and its counsel and representatives of the Debtor and other parties; and -- assist and advise the Committee in its analysis of the Debtors' hypothetical liquidation analyses under various scenarios. The hourly rates of Grant Thornton's personnel are: Partner/Principal/Managing Director $625 - $695 Senior Manager/Director $525 - $610 Manager $410 - $465 Senior Associate $290 - $360 Paraprofessional $75 - $175 To the best of the Committee's knowledge, Grant Thornton is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. A June 13, 2013, hearing at 11 a.m., has been set. Objections, if any, are due May 24 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. On April 8, 2013, Rotech Healthcare and 114 subsidiary companies filed petitions seeking relief under chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 13-10741) to implement a pre- arranged plan negotiated with secured lenders. Attorneys at Proskauer Rose LLP, and Young, Conaway, Stargatt & Taylor serve as counsel to the Debtors; Foley & Lardner LLP is the healthcare regulatory counsel; Akin Gump Strauss Hauer & Feld LLP is the special healthcare regulatory counsel; Barclays Capital Inc. is the financial advisor; Alix Partners, LLP is the restructuring advisor; and Epiq Bankruptcy Solutions LLC is the claims agent. Prepetition term loan lender and DIP lender Silver Point Capital and other consenting noteholders are represented by Wachtell, Lipton, Rosen & Katz, and Richards Layton & Finger PA. The U.S. Trustee at the end of April appointed an official committee of equity holders. Members include Alden Global Recovery Master Fund LP, Varana Capital Master LP, Wynnefield Partners Small Cap Value LP I, Bastogne Capital Partners, LP, and Kenneth S. Grossman P.C. Pension Plan. The plan is supported by holders of a majority of the first- and second-lien secured notes. The $290 million in 10.5 percent second-lien notes are to be exchanged for the new equity. Trade suppliers are to be paid in full, if they agree to continue providing credit. The existing $23.5 million term loan would be paid in full, and the $230 million in 10.75 percent first-lien notes will be amended. The Official Committee of Unsecured Creditors tapped Grant Thornton LLP as its financial advisor, and Buchanan Ingersoll & Rooney PC as its Delaware counsel. ROTECH HEALTHCARE: Taps Deloitte & Touche as Independent Auditors ----------------------------------------------------------------- Rotech Healthcare Inc., et al., ask the U.S. Bankruptcy Court for the District of Delaware for permission to employ Deloitte & Touche LLP as independent auditors. Deloitte & Touche will, among other things: a) perform a consolidating audit of the Debtor's financial statements for the year ending Dec. 31, 2012, to express an opinion on the fairness of the presentation of the Company's consolidated financial statements for the year ending Dec. 31, 2012; and b) perform related audit services requested by the Debtors and agreed to by Deloitte & Touche. Prepetition, Deloitte & Touche received $833,750 from the Debtors in connection with the services rendered. Loreen Spencer, a partner with Deloitte & Touche, tells the Court that an estimated fee for the audit services is $1,385,750 plus expenses. Additional related audit services requested will be billed at these hourly rates: Partner/Principal/Director $585 - $640 Senior Manager $450 - $550 Manager $425 - $500 Senior $335 - $400 Associates $250 - $325 To the best of the Debtors' knowledge, Deloitte & Touche is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. A June 13, 2013, hearing at 11 a.m., has been set. Objections, if any, are June 6. Deloitte & Touche as Tax Services Provider In a separate filing, the Debtors request permission to employ Deloitte Tax as tax services provider to, among other things: -- advise the Debtors on the preparation of tax basis balance sheets; -- advise the Debtors in their efforts to determine tax basis in the stock in each of the debtors' subsidiaries or other entity interests; and -- advise the Debtor on the application of IRC Section 382 to historic IRC Section 382 ownership changes or ownership shifts. The Debtors agreed to pay Deloitte Tax these hourly rates: Partner, Principal and Director $650 - $720 Senior Manager $580 - $630 Manager $500 - $560 Senior $400 - $430 Associate $300 - $325 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. On April 8, 2013, Rotech Healthcare and 114 subsidiary companies filed petitions seeking relief under chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 13-10741) to implement a pre- arranged plan negotiated with secured lenders. Attorneys at Proskauer Rose LLP, and Young, Conaway, Stargatt & Taylor serve as counsel to the Debtors; Foley & Lardner LLP is the healthcare regulatory counsel; Akin Gump Strauss Hauer & Feld LLP is the special healthcare regulatory counsel; Barclays Capital Inc. is the financial advisor; Alix Partners, LLP is the restructuring advisor; and Epiq Bankruptcy Solutions LLC is the claims agent. Prepetition term loan lender and DIP lender Silver Point Capital and other consenting noteholders are represented by Wachtell, Lipton, Rosen & Katz, and Richards Layton & Finger PA. The U.S. Trustee at the end of April appointed an official committee of equity holders. Members include Alden Global Recovery Master Fund LP, Varana Capital Master LP, Wynnefield Partners Small Cap Value LP I, Bastogne Capital Partners, LP, and Kenneth S. Grossman P.C. Pension Plan. The plan is supported by holders of a majority of the first- and second-lien secured notes. The $290 million in 10.5 percent second-lien notes are to be exchanged for the new equity. Trade suppliers are to be paid in full, if they agree to continue providing credit. The existing $23.5 million term loan would be paid in full, and the $230 million in 10.75 percent first-lien notes will be amended. The Official Committee of Unsecured Creditors tapped Grant Thornton LLP as its financial advisor, and Buchanan Ingersoll & Rooney PC as its Delaware counsel. ROTECH HEALTHCARE: Young Conaway OK'd as Bankruptcy Co-Counsel -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized Rotech Healthcare Inc., et al., to employ Young Conaway Stargatt & Taylor, LLP as bankruptcy co-counsel under a general retainer. 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. On April 8, 2013, Rotech Healthcare and 114 subsidiary companies filed petitions seeking relief under chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 13-10741) to implement a pre- arranged plan negotiated with secured lenders. Attorneys at Proskauer Rose LLP, and Young, Conaway, Stargatt & Taylor serve as counsel to the Debtors; Foley & Lardner LLP is the healthcare regulatory counsel; Akin Gump Strauss Hauer & Feld LLP is the special healthcare regulatory counsel; Barclays Capital Inc. is the financial advisor; Alix Partners, LLP is the restructuring advisor; and Epiq Bankruptcy Solutions LLC is the claims agent. Prepetition term loan lender and DIP lender Silver Point Capital and other consenting noteholders are represented by Wachtell, Lipton, Rosen & Katz, and Richards Layton & Finger PA. The U.S. Trustee at the end of April appointed an official committee of equity holders. Members include Alden Global Recovery Master Fund LP, Varana Capital Master LP, Wynnefield Partners Small Cap Value LP I, Bastogne Capital Partners, LP, and Kenneth S. Grossman P.C. Pension Plan. The plan is supported by holders of a majority of the first- and second-lien secured notes. The $290 million in 10.5 percent second-lien notes are to be exchanged for the new equity. Trade suppliers are to be paid in full, if they agree to continue providing credit. The existing $23.5 million term loan would be paid in full, and the $230 million in 10.75 percent first-lien notes will be amended. The Official Committee of Unsecured Creditors tapped Grant Thornton LLP as its financial advisor, and Buchanan Ingersoll & Rooney PC as its Delaware counsel. SCOOTER STORE: Panel Taps Cooley and Cousins Chipman as Counsel --------------------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 cases of The Scooter Store Holdings, Inc., et al., asks the Bankruptcy Court for permission to retain Cooley LLP and Cousins Chipman & Brown, LLP, as its counsel. The firms can be reached at: Cathy Hershcopf, Esq. Jeffrey L. Cohen, Esq. Seth Van Aalten, Esq. COOLEY LLP 114 Avenue of the Americas New York, NY 10036 Tel: (212) 479-6000 Fax: (212) 479-6275 E-mails: chershcopf@cooley.com jcohen@cooley.com svanaalten@cooley.com - and - Scott D. Cousins, Esq. Mark D. Olivere, Esq. Rachel S. London, Esq. COUSINS CHIPMAN & BROWN, LLP 1007 North Orange Street, Suite 1110 Wilmington, DE 19801 Tel: (302) 295-0191 Fax: (302) 295-0199 E-mails: counsins@ccbllp.com olivere@ccbllp.com london@ccbllp.com About The Scooter Store The Scooter Store is a supplier of power mobility solutions, including power wheelchairs, scooters, lifts, ramps, and accessories. The Scooter Store's products and services provide today's seniors and disabled persons potential alternatives to living in nursing homes or other care facilities. Headquartered in New Braunfels, Texas, the Scooter Store has a nationwide network of distribution centers that service products owned or leased by the Company's customers. It has 57 distribution centers in 41 states. Scooter Store Holdings Inc., and 71 affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 13-10904) in Wilmington. The closely held company listed assets of less than $10 million and debt of more than $50 million. Affiliates of private equity firm Sun Capital Partners, based in Boca Raton, Florida, purchased a majority voting interest in the debtors in 2011. Scooter Store is 66.8 percent owned by Sun Capital Partners Inc., owed $40 million on a third lien. In addition to Sun's debt and $25 million on a second lien owing to Crystal Financial LLC, there is a $25 million first-lien revolving credit owing to CIT Healthcare LLC as agent. Crystal is providing $10 million in financing for bankruptcy. SCOOTER STORE: May Hire Morgan Joseph as Investment Banker ---------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized The Scooter Store Holdings, Inc., et al., to employ Morgan Joseph Triartisan LLC as investment banker. To the best of the Debtors' knowledge, the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About The Scooter Store The Scooter Store is a supplier of power mobility solutions, including power wheelchairs, scooters, lifts, ramps, and accessories. The Scooter Store's products and services provide today's seniors and disabled persons potential alternatives to living in nursing homes or other care facilities. Headquartered in New Braunfels, Texas, the Scooter Store has a nationwide network of distribution centers that service products owned or leased by the Company's customers. It has 57 distribution centers in 41 states. Scooter Store Holdings Inc., and 71 affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 13-10904) in Wilmington. The closely held company listed assets of less than $10 million and debt of more than $50 million. Affiliates of private equity firm Sun Capital Partners, based in Boca Raton, Florida, purchased a majority voting interest in the debtors in 2011. The company is 66.8 percent owned by Sun Capital Partners Inc., owed $40 million on a third lien. In addition to Sun's debt and $25 million on a second lien owing to Crystal Financial LLC, there is a $25 million first-lien revolving credit owing to CIT Healthcare LLC as agent. Crystal is providing $10 million in financing for bankruptcy. SCOOTER STORE: Young Conaway Approved as Bankruptcy Counsel ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized The Scooter Store Holdings, Inc., et al., to employ Young Conaway Stargatt & Taylor, LLP, as bankruptcy counsel. The Scooter Store is a supplier of power mobility solutions, including power wheelchairs, scooters, lifts, ramps, and accessories. The Scooter Store's products and services provide today's seniors and disabled persons potential alternatives to living in nursing homes or other care facilities. Headquartered in New Braunfels, Texas, the Scooter Store has a nationwide network of distribution centers that service products owned or leased by the Company's customers. It has 57 distribution centers in 41 states. Scooter Store Holdings Inc., and 71 affiliates filed for Chapter 11 bankruptcy (Bankr. D. Del. Lead Case No. 13-10904) in Wilmington. The closely held company listed assets of less than $10 million and debt of more than $50 million. Affiliates of private equity firm Sun Capital Partners, based in Boca Raton, Florida, purchased a majority voting interest in the debtors in 2011. The company is 66.8 percent owned by Sun Capital Partners Inc., owed $40 million on a third lien. In addition to Sun's debt and $25 million on a second lien owing to Crystal Financial LLC, there is a $25 million first-lien revolving credit owing to CIT Healthcare LLC as agent. Crystal is providing $10 million in financing for bankruptcy. SIERRA NEGRA: Taps Munger Chadwick as Special Utilities Counsel --------------------------------------------------------------- Sierra Negra Ranch LLC last month filed documents seeking approval to employ Munger Chadwick, PLC as special utilities counsel. Munger Chadwick, as special utilities counsel, will undertake the legal services required to represent Debtor's with respect to the SNR Intervention -- an application for leave to intervene and all other pertinent proceedings that are now pending or may arise before the ACC. Robert J. Metli, Esq. will be the individual primarily responsible for performing or supervising the performance of the services required by Debtor and his rate will be $300 per hour. To the best of the Debtor's knowledge, Munger Chadwick does not hold or represent any interest that would impair Munger Chadwick's ability to objectively perform the services. About Sierra Negra Ranch Las Vegas, Nevada-based Sierra Negra Ranch, LLC, is a limited liability company organized in November 2004 to purchase an aggregate of approximately 2,757.5 acres of undeveloped land in the Tonopah area of incorporated Maricopa County, west of Phoenix, Arizona. It filed a bare-bones Chapter 11 petition (Bankr. D. Nev. Case No. 12-19649) in Las Vegas on Aug. 21, 2012. Candace C. Clark, Esq., and Gerald M. Gordon, Esq., at Gordon Silver, in Las Vegas, Nev., represent the Debtor as counsel. In its amended schedules, the Debtor disclosed $26,197,986 in total assets and $4,801,931 in total liabilities. The Debtor is "Single Asset Real Estate" as defined in 11 U.S.C. Sec 101(51B) and its asset is located in Maricopa County, Arizona. SIMON WORLDWIDE: Delays Form 10-Q for First Quarter --------------------------------------------------- Simon Worldwide, Inc., notified the U.S. Securities and Exchange Commission regarding the delay in the filing of its quarterly report on Form 10-Q for the period ended March 31, 2013. Simon Worldwide, together with Richard Beckman, Joel Katz and OA3, LLC, had entered into the limited liability company agreement Of Three Lions Entertainment, LLC. Pursuant to the Operating Agreement, the Company made an initial capital contribution of $3,150,000 with respect to membership units representing 60 percent of the interest in the economic returns of Three Lions, including certain preferences with respect to common holders on operating returns and on a liquidation or sale of Three Lions. The Company said it needs additional time to analyze the appropriate financial statement presentation related to acquiring the membership units in Three Lions and to complete its financial statements. About Simon Worldwide Based in Los Angeles, Simon Worldwide, Inc. (OTC: SWWI) no longer has any operating business. Prior to August 2001, the Company operated as a multi-national full-service promotional marketing company, specializing in the design and development of high-impact promotional products and sales promotions. At Dec. 31, 2009, the Company held an investment in Yucaipa AEC Associates, LLC, a limited liability company that is controlled by the Yucaipa Companies, a Los Angeles, California based investment firm. Yucaipa AEC in turn principally held an investment in the common stock of Source Interlink Companies, a direct-to-retail magazine distribution and fulfillment company in North America, and a provider of magazine information and front-end management services for retailers and a publisher of approximately 75 magazine titles. Yucaipa AEC held this investment in Source until April 28, 2009, when Source filed a pre-packaged plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code. Simon Worldwide disclosed a net loss of $1.52 million on $0 revenue for the year ended Dec. 31, 2012, as compared with a net loss of $1.97 million on $0 revenue in 2011. The Company's balance sheet at Dec. 31, 2012, showed $7.70 million in total assets, $107,000 in total liabilities and $7.59 million in total stockholders' equity. SOMERSET PROPERTIES: Wins Confirmation of 2nd Amended Plan ---------------------------------------------------------- Somerset Properties SPE, LLC, obtained confirmation of its Second Amended Plan of Reorganization which incorporated changes to the First Amended Plan, as supplemented on July 2, 2012, that were agreed to by the Debtor and its lenders, CSFB 2001-CP4 Bland Road, LLC and CSFB 2001-CP4 Falls of Neuse, LLC. The Debtor will fund the Plan by continuing to lease space in its buildings, operate in the ordinary course of business, and use cash flow for Plan obligations. The Debtor will also implement the Plan by using Accumulated Cash Collateral to fund on the Effective Date certain payments and reserves with the Lenders as provided herein. A copy of the Second Amended Plan if available for free at http://bankrupt.com/misc/SOMERSETPROPERTIES_plan_order.pdf About Somerset Properties Raleigh, North Carolina-based Somerset Properties SPE, LLC, owns six office buildings in Raleigh, North Carolina. The Company filed for Chapter 11 bankruptcy protection (Bankr. E.D.N.C. Case No. 10-09210) on Nov. 8, 2010. William P. Janvier, Esq., at Janvier Law Firm, PLLC, in Raleigh, N.C., represents the Debtor as bankruptcy counsel. The law firm of Blanchard, Miller, Lewis & Isley, P.A., in Raleigh, N.C., is the Debtor's special counsel. The Company disclosed $36.50 million in assets and $28.83 million in liabilities as of the Chapter 11 filing. SOUTH LAKES: Pietersma & Company OK'd to Conduct Calves Sale ------------------------------------------------------------ The U.S. Bankruptcy Court for the Eastern District of California authorized South Lakes Dairy Farm to employ Pietersma & Company Dairy and Real Estate Brokers to conduct the sale. As reported in the Troubled Company Reporter on April 19, 2013, the Debtor sought court permission to sell about 550 heifer calves (Liquidation Calves) ages 12 to 17 months old and to employ Pietersma & Company Dairy and Real Estate Brokers to conduct the sale. The Debtor also sought authorization to purchase about 525 calves (Replacement Calves), between the ages of 6 to 9 months. The Debtor owns about 4,500 heifer calves of various ages. It has about 1,900 heifers ages 12 to 17 months -- the Pregnant Heifers. This is about 550 head more than are needed in this age range to maintain milking herd. Further, the Debtor has about 166 heifers ages 6 to 9 months. This is about 525 fewer than are needed in this age range to maintain the milking herd. The Heifers are subject to a security interest held by Wells Fargo Bank in the amount of about $16.47 million. The Debtor wants to sell 550 of the Pregnant Heifers for not less than $385,000 or $700 per head. The Debtor anticipates it may receive as much as $577,500 or $1,050 per head for the Liquidation Calves. The Debtor anticipates that the Replacement Calves will cost between $236,000 or $450 per head and $341,250 or $650 per head. The Debtor will use the proceeds from the sale of the Liquidation Calves to buy the Replacement Calves. The sale will enable the Debtor to eliminate imbalances in the age groups of the Heifers that the Debtor owns. The current imbalance causes the Debtor to incur unnecessary expenses and causes volatility in the Debtor's replacement heifers, which if not corrected, will result in volatility in milk herd size and revenue. Wells Fargo has informed the Debtor that it does not object to the Debtor's desire and proposed process to balance the age groups among the Heifers. The Debtor highlighted the need for the sale and purchase to occur within 45 days of each other so that the transaction qualifies as an exchange under Section 1031 of 26 U.S.C. to avoid adverse tax consequences. Thus, the Debtor wants a licensed broker to help it with a private sale rather than go through a public auction. The Debtor also believes that the sale of the Liquidation Calves will result in funds sufficient to pay the broker's fees and other costs of sale, and the purchase of the Replacement Calves. The Debtor intends to pay any remaining proceeds to Wells Fargo. The fees for professional services rendered by Pietersma are: a. Commission: Pietersma is to receive a 5% commission for the sale of the Liquidation Calves, exchange of the calves, or for acquiring the Replacement Calves; and b. Costs: Escrow fees are estimated at approximately $3,000 and brand inspection fees are estimated to be approximately $2,000. Pietersma's responsibilities regarding the transaction include: a. Brand Inspection: Pietersma will arrange for brand inspection of the Liquidation Calves and the Replacement Calves; and b. Ordinary Expenses: Pietersma will bear the cost of all ordinary expenses incidental to a purchase and sale, including, but not limited to, advertising, hauling, if any, and other costs of sale. The Debtor believes the firm is "disinterested" within the meaning of Section 101(14) of the Bankruptcy Code. About South Lakes Dairy South Lakes Dairy Farm is a California partnership engaged in the dairy cattle4 and milking business. The partnership filed a bare- bones Chapter 11 petition (Bankr. E.D. Calif. Case No. 12-17458) in Fresno, California on Aug. 30, 2012, disclosing $19.5 million in assets and $25.4 million in liabilities in its schedules. The Debtor said it has $1.97 million in accounts receivable charged to Dairy Farmers of America on account of milk proceeds, and that it has cattle worth $12.06 million. The farm owes $12.7 million to Wells Fargo Bank on a secured note. Bankruptcy Judge W. Richard Lee presides over the case. Jacob L. Eaton, Esq., at Klein, DeNatale, Goldner, Cooper, Rosenlieb & Kimball, LLP, in Bakersfield, Calif., represents the Debtor as counsel. The Debtor tapped A&M Livestock Auction, Inc., to auction livestock. August B. Landis, the Acting U.S. Trustee for Region 17, appointed seven creditors to serve in the Official Committee of Unsecured Creditors. The Official Committee of Unsecured Creditors tapped Blakeley & Blakeley LLP as its counsel. SOUTHERN OAKS: Has Access to Cash Collateral Until October 2013 --------------------------------------------------------------- The Hon. Niles Jackson of the U.S. Bankruptcy Court for the Western District of Oklahoma authorized Southern Oaks of Oklahoma, LLC's cash collateral use until October 2013. Pursuant to the agreement, if the Debtor's actual expenditures exceed the projected expenditures set forth in the budget by more than five percent, then the secured creditor whose cash collateral use has been exceeded may terminate its consent to use cash collateral upon 48 hours written notice to the Debtor's counsel. The Debtor is also authorized to endorse insurance proceeds checks on behalf of Suntrust Mortgage, Federal National Mortgage Association and OneWest Bank FSB (formerly IndyMac Mortgage Services) for deposit into the Debtor's DIP account, which the Debtor may use in accordance with the terms and conditions of the order. A copy of the cash collateral budget is available for free at http://bankrupt.com/misc/SOUTHERNOAKS_cashcoll_order.pdf About Southern Oaks Southern Oaks of Oklahoma, LLC, owns a 126 unit apartment complex in south Oklahoma City, 115 single family residences, 10 residential duplexes and 4 commercial properties in the Oklahoma City Metro area and a 100 unit apartment complex in Pryor, Oklahoma. The Company operates the non-apartment properties by and through an affiliate property management company, Houses For Rent of OKC, LLC, who advertises, leases, collects rents, pays expenses, provides equipment, labor and materials for maintenance, repairs and makeready services. The Company filed for Chapter 11 bankruptcy (Bankr. W.D. Okla. Case No. 12-10356) on Jan. 31, 2012. Judge Niles L. Jackson presides over the case. Ruston C. Welch, Esq., at Welch Law Firm P.C., serves as the Debtor's counsel. It scheduled $14,788,414 in assets and $15,352,022 in liabilities. The petition was signed by Stacy Murry, manager of MBR. Affiliates that filed separate Chapter 11 petitions are Charlemagne of Oklahoma, LLC (Bankr. W.D. Okla. Case No. 10-13382) on July 2, 2010; and Brookshire Place, LLC (Bankr. W.D. Okla. Case No. 11-10717) on Feb. 23, 2011. Southern Oaks owns a 126-unit apartment complex in south Oklahoma City, 115 single family residences, 10 residential duplexes and 4 commercial properties in the Oklahoma City Metro area and a 100 unit apartment complex in Pryor, Oklahoma. Southern Oaks operates the non-apartment Properties by and through an affiliate property management company, Houses For Rent of OKC LLC, who advertises, leases, collects rents, pays expenses, provides equipment, labor and materials for maintenance, repairs and make ready services. On Jan. 12 and 27, 2012, the Debtor's ownership and operation of the Properties was consolidated by the merger of various affiliate entities with the Debtor being the surviving entity. Those entities are Southern Oaks Of Oklahoma, LLC; Quail 12, LLC; Quail 13, LLC; 1609 N.W. 47th, LLC; 2233 S.W. 29th, LLC; 400 S.W. 28th, LLC; South Robinson, LLC; 9 on S.E. 27th, LLC; Southside 10, LLC; QCB 08, LLC; and Prairie Village of Oklahoma, LLC. SOUTHERN OAKS: Opposes SunTrust Mortgage Stay Relief Bid -------------------------------------------------------- Southern Oaks of Oklahoma, LLC, asked the U.S. Bankruptcy Court for the Western District of Oklahoma to deny SunTrust Mortgage, Inc.'s motion for relief from automatic stay on these properties: 1. a single family residence located at 12713 Meadows Drive, Oklahoma City, Oklahoma; and 2. a single family residence located at 2501 Kathy Court, Oklahoma City, Oklahoma. According to the Debtor, no cause is even alleged for relief, no grounds can be shown for relief from stay. The Debtor also said that the property is necessary for an effective reorganization, and it has equity in the property which provides the movant with an equity cushion. The assessed value of the property is approximately $101,000. SunTrust Mortgage, in its motion, requested that the Court enter an order vacating or modifying the automatic stay and directing the trustee to abandon the mortgaged property so as to permit SunTrust Mortgage and other interested parties to enforce their liens against the subject properties. About Southern Oaks Southern Oaks of Oklahoma, LLC, owns a 126 unit apartment complex in south Oklahoma City, 115 single family residences, 10 residential duplexes and 4 commercial properties in the Oklahoma City Metro area and a 100 unit apartment complex in Pryor, Oklahoma. The Company operates the non-apartment properties by and through an affiliate property management company, Houses For Rent of OKC, LLC, who advertises, leases, collects rents, pays expenses, provides equipment, labor and materials for maintenance, repairs and makeready services. The Company filed for Chapter 11 bankruptcy (Bankr. W.D. Okla. Case No. 12-10356) on Jan. 31, 2012. Judge Niles L. Jackson presides over the case. Ruston C. Welch, Esq., at Welch Law Firm P.C., serves as the Debtor's counsel. It scheduled $14,788,414 in assets and $15,352,022 in liabilities. The petition was signed by Stacy Murry, manager of MBR. Affiliates that filed separate Chapter 11 petitions are Charlemagne of Oklahoma, LLC (Bankr. W.D. Okla. Case No. 10-13382) on July 2, 2010; and Brookshire Place, LLC (Bankr. W.D. Okla. Case No. 11-10717) on Feb. 23, 2011. Southern Oaks owns a 126-unit apartment complex in south Oklahoma City, 115 single family residences, 10 residential duplexes and 4 commercial properties in the Oklahoma City Metro area and a 100 unit apartment complex in Pryor, Oklahoma. Southern Oaks operates the non-apartment Properties by and through an affiliate property management company, Houses For Rent of OKC LLC, who advertises, leases, collects rents, pays expenses, provides equipment, labor and materials for maintenance, repairs and make ready services. On Jan. 12 and 27, 2012, the Debtor's ownership and operation of the Properties was consolidated by the merger of various affiliate entities with the Debtor being the surviving entity. Those entities are Southern Oaks Of Oklahoma, LLC; Quail 12, LLC; Quail 13, LLC; 1609 N.W. 47th, LLC; 2233 S.W. 29th, LLC; 400 S.W. 28th, LLC; South Robinson, LLC; 9 on S.E. 27th, LLC; Southside 10, LLC; QCB 08, LLC; and Prairie Village of Oklahoma, LLC. SUNTECH POWER: Has Forbearance with Noteholders Until June 28 ------------------------------------------------------------- Suntech Power Holdings Co., Ltd., has agreed on a new forbearance agreement with the majority of the holders of the Company's 3 percent Convertible Notes, for which a principal payment of US$541 million was due on March 15, 2013. Under the new forbearance agreement, the signing bondholders agree not to exercise their rights under the Notes and the related indenture until June 28, 2013, subject to certain market-standard early termination events. David King, Suntech's CEO, said, "This new forbearance agreement demonstrates bondholders' continued support for Suntech. The agreement will enable Suntech to continue to work with bondholders towards achieving a consensual restructuring." About Suntech Wuxi, China-based Suntech Power Holdings Co., Ltd. (NYSE: STP) produces solar products for residential, commercial, industrial, and utility applications. With regional headquarters in China, Switzerland, and the United States, and gigawatt-scale manufacturing worldwide, Suntech has delivered more than 25,000,000 photovoltaic panels to over a thousand customers in more than 80 countries. As reported by the TCR on March 20, 2013, Suntech Power Holdings Co., Ltd., has received from the trustee of its 3% Convertible Notes a notice of default and acceleration relating to Suntech's non-payment of the principal amount of US$541 million that was due to holders of the Notes on March 15, 2013. That event of default has also triggered cross-defaults under Suntech's other outstanding debt, including its loans from International Finance Corporation and Chinese domestic lenders. T-L BRYWOOD: Ill. Court Transfers Venue of Case to N.D. Ind. ------------------------------------------------------------ T-L Brywood LLC sought and obtained approval from the U.S. Bankruptcy Court to transfer the venue of its bankruptcy case to U.S. Bankruptcy Court for the Northern District of Indiana, Hammond Division. T-L Brywood LLC filed for Chapter 11 bankruptcy (Bankr. N.D. Ill. Case No.12-09582) on March 12, 2012. T-L Brywood owns and operates a commercial shopping center known as the "Brywood Centre" -- http://www.brywoodcentre.com/-- in Kansas City, Missouri. The Property encompasses roughly 25.6 acres and comprises 183,159 square feet of retail space that is occupied by 12 operating tenants. The occupancy rate for the Property is approximately 80%. The Debtor and lender The PrivateBank and Trust Company reached an impasse over the terms and conditions of another extension of a mortgage loan on the Property. As a result, the Debtor filed the Chapter 11 case to protect the Property from foreclosure while the Debtor formulates an exit strategy from the reorganization case. As of the Petition Date, no foreclosure relating to the Property had been filed by the Lender. Judge Donald R. Cassling oversees the case. The Debtor is represented by David K. Welch, Esq., Arthur G. Simon, Esq., and Jeffrey C. Dan. Esq., at Crane, Heyman, Simon, Welch & Clar, in Chicago. The Debtor disclosed total assets of $16,666,257 and total liabilities of $13,970,622 in its schedules. The petition was signed by Richard Dube, president of Tri-Land Properties, Inc., manager. PrivateBank is represented by William J. Connelly, Esq., at Hinshaw & Culbertson LLP. THERAPEUTICSMD INC: Named Former Johnson & Johnson Exec. to Board ----------------------------------------------------------------- TherapeuticsMD, Inc., elected Jules A. Musing, a former senior executive at Johnson & Johnson, to its Board of Directors, effective immediately. Mr. Musing has more than 36-years' experience in the pharmaceutical and biotechnology industry and has been President and Managing Director of Johnson & Johnson subsidiary companies in the United States and Europe; President of Ares Serono, Inc., in the United States; and Executive Vice President of Ares Serono in North and Latin America. In the course of his career at Johnson & Johnson, Mr. Musing was responsible for worldwide licensing and acquisition of pharmaceutical and biotechnology products and technologies, as well as the establishment of strategic alliances. This included the establishment of new scientific, technology and product collaborations in various therapeutic areas; the negotiation of licensing and alliance agreements with biotechnology and pharmaceutical companies worldwide; and the partnering, spin-out and out-licensing of company pharmaceutical and biotechnology assets. In this position he negotiated and signed several multi- million dollar deals with small, medium and large pharmaceutical and biotechnology companies on a global basis. He also has been on the Board of Directors of Johnson & Johnson companies in Germany, France, Italy and the UK and has been a member of the Management Board of Ortho Biotech (a Johnson & Johnson biotechnology company) in the United States and Europe. Early on in his career, Mr. Musing was responsible for the business development activities of Janssen Pharmaceutica in S.E. Asia, where he was instrumental in the establishment of Johnson & Johnson pharmaceutical subsidiaries in Japan, Australia, South Africa, Thailand, and other S.E. Asian countries. He also was Vice President, Marketing International for the Janssen Group of Companies Worldwide. "We are pleased to welcome Mr. Musing to the Board," said the Honorable Tommy G. Thompson, Chairman of the Board, TherapeuticsMD. "During Mr. Musing?s extensive and distinguished career at Johnson & Johnson, he established numerous strategic and global partnerships on many different fronts. The knowledge gained from those accomplishments is sure to offer valuable insight and direction to the company going forward." "Mr. Musing's hands-on industry experience, in addition to having had direct responsibility for establishing various new product collaborations, will prove invaluable as we prepare to commence Phase III clinical trials on three of our hormone therapy development candidates," said Robert G. Finizio, chief executive officer. "I am excited to join the TherapeuticsMD Board at this pivotal time in the company's development," said Mr. Musing. "I look forward to working closely with this experienced and dedicated senior management team." Mr. Musing presently serves on the Board of Directors of Delphi Digital, Inc. and is Chairman of the Scientific Advisory Board of Noble Capital Financial Markets. In addition, he has been a member of the Board of Directors of iBio, Inc. Mr. Musing received his Master's Degree in Biological Sciences from the University of Brussels, and his Graduate Degree in Economics and Financial Sciences from the University of Antwerp, in Belgium. About TherapeuticsMD Boca Raton, Florida-based TherapeuticsMD, Inc. (OTC QB: TXMD) is a women's healthcare product company focused on creating and commercializing products targeted exclusively for women. The Company currently manufactures and distributes branded and generic prescription prenatal vitamins as well as over-the-counter vitamins and cosmetics. The Company is currently focused on conducting the clinical trials necessary for regulatory approval and commercialization of advanced hormone therapy pharmaceutical products designed to alleviate the symptoms of and reduce the health risks resulting from menopause-related hormone deficiencies. In the auditors' report accompanying the consolidated financial statements for the year ended Dec. 31, 2012, Rosenberg Rich Baker Berman & Company, in Somerset, New Jersey, expressed substantial doubt about TherapeuticsMD's ability to continue as a going concern, citing the Company's loss from operations of approximately $16 million and negative cash flow from operations of approximately $13 million. The Company reported a net loss of $35.1 million on $3.8 million of revenues in 2012, compared with a net loss of $12.9 million on $2.1 million of revenues in 2011. The Company's balance sheet at March 31, 2013, showed $44.19 million in total assets, $4.24 million in total liabilities and $39.94 million in total stockholders' equity. TLO LLC: Owners to Spar on DIP Financing at June 11 Hearing ----------------------------------------------------------- TLO LLC will ask the bankruptcy judge at a hearing on June 11, 2013 at 9:30 a.m. in West Palm Beach, Florida, for final approval of its request to obtain bankruptcy financing from the Debtor's current co-CEOs, Eliza Desiree Asher and Caroline Asher Yoost, the daughters of the deceased founder of the Debtor, Hank Asher. At a hearing on May 14, Chief Bankruptcy Judge Paul Gy. Hyman granted TLO interim approval of the DIP financing and signed a separate order authorizing the Debtor to use cash collateral of its prepetition lenders. The Debtor's principals have each agreed to loan $1 million to the Debtor immediately. Payable interest will be 9% per annum. The loans will be secured by life insurance proceeds of Mr. Asher payable to the Debtor, along with all other assets of the Debtor. Technology Investors, Inc., the Debtor's secured lender, has agreed to subordinate its liens to the liens granted the DIP lenders. TII has also agreed to allow the Debtor to use cash collateral. TII is owned by the estate of the Debtor's founder and is owed $81.7 million in principal and $7.3 million in interest for funding provided prepetition. TII will receive replacement liens and claims under 11 U.S.C. 507 as adequate protection. The interim cash collateral order provides that the Debtor will continue to be required to maintain a minimum balance of $400,000 in an account with Wells Fargo. The budget shows a beginning cash balance of $830,500, projected revenues of $2.24 million, $2.33 million and $2.42 million from May to July, and operating expenses of $2.09 million, $1.74 million and $1.89 million during the period. A copy of the budget attached to the interim DIP order is available for free at: http://bankrupt.com/misc/TLO_Interim_DIP_Order_Budget.pdf The Debtor's proposed orders were submitted by Alvin S. Goldstein, Esq., at Furr and Cohen, P.A. $2-Mil. Each in Add'l Loans According to the proposed DIP financing documents, the principals will have the option of loaning up to an additional $2,000,000 each to the Debtor. These loans can be, at the discretion of the Principals, either (i) interest only at 9% per annum or (ii) convertible into equity in the reorganized Debtor or an entity acquiring the assets of the Debtor as preferred shares and equity at 5 percentage points per million. These loans will likewise be secured by the aforementioned life insurance proceeds and all other assets of the Debtor. These liens will be senior to TII's lien. The Debtor said it has an immediate need to obtain financing to permit, among other things, the orderly continuation of the operation of its business, to maintain business relationships with vendors, suppliers and customers, to make payroll, to make capital expenditures and to satisfy other working capital and operational needs. Objections by Minority Shareholders Not everyone is on board with the bankruptcy financing from the Debtor's principals. William H. Price and Green Cook Management LLC raised objections, noting that Section 364 of the Bankruptcy Code does not provide for the granting of an equity interest in the Debtor in return for post-petition financing and, in this instance, it would result in a windfall for the DIP lenders. Mr. Price, Green Cook, and their affiliates collectively own at least 17% of the Debtor and are creditors of Debtor. Mr. Price is also a member of the Board of Directors of Debtor, and, from the end of November 2012 through the end of February 2013, was a co-manager of the Debtor. According to the list of equity holders, entities related to Asher own at least 38% of the Debtor. Mr. Price points out that various appraisals in 2012 valued the Debtor at between $30,000,000 and $300,000,000, and, in November, 2012, Price, Green Cook, and their affiliates, purchased 19% of Debtor for $30 million which would be equivalent to a purchase price for Debtor of $157.9 million. The post-petition financing could result in the DIP lenders obtaining 30% of the Debtor for $6 million which is equivalent to a purchase price of Debtor of only $20 million, Mr. Price tells the Court. Mr. Price says the Debtor has rapidly grown and continues to grow. The Debtor's revenues have increased from $2.57 million in 2011 to $11.5 million in 2012 to $7.85 million for the first four months of 2013, which puts it on track to have $23.5 million in revenue for 2013. Mr. Price was removed as co-manager at the end of February 2013. He offered to lend the Debtor money to avoid bankruptcy but the offer was rejected by the Debtor's principals. He says that the principals are using bankruptcy to enrich themselves. Mr. Price is represented by: Barry S. Balmuth, B.C.S. BARRY S. BALMUTH, P.A. 1601 Forum Place, Suite 1101 West Palm Beach, FL 33401 Tel: (561) 242-9400 Fax: (561) 478-2433 E-mail: balmuthlaw@alum.emory.edu Stay Relief Motion There's also a stay relief motion filed by Mr. Price with respect to an ongoing state court litigation between the Debtor and Mr. Price. The Debtor has sued Mr. Price and Green Cook in the Fifteenth Judicial Circuit Court, Palm Beach County, Florida in the case styled TLO, LLC v. William H. Price et al., case no.: 502013CA006006XXXXMB (AD), bringing a number of causes of action, principally alleging that Mr. Price: (i) made misrepresentations and submitted fraudulent financial statements relating to certain companies Mr. Price contributed to Debtor as part of the purchase price of Mr. Price and Green Cook's membership interest in TLO; (ii) failed to, in good-faith, resolve a dispute between the Debtor and a vendor of the Debtor because it would result in him being able to continue to hold back $7,500,000 of the price of the purchase of his membership interest in the Debtor, (iii) improperly took $100,000 of the Debtor's money for his own purposes; and (iv) intentionally took actions that were contrary to the Debtor's interest and otherwise poorly performing as a co- manager. Mr. Price and Green Cook's affirmative defenses include: (i) prior material breach of the contracts; (ii) fraud in the inducement to execute the contracts; (iii) hindering and making impossible Mr. Price's performance of the contracts; (iv) contributory negligence by virtue of Debtor's failure to properly review the information provided by Mr. Price and Green Cook at the time of sale; (v) waiver and unclean hands which specifically refer to the allegations of the counterclaim; and (vi) that actions Mr. Price is being sued for were based on his business judgment. In their counterclaim in the State Court Action, Mr. Price and Green Cook made the same assertions as in their Affirmative Defenses but expanded upon them by further alleging that the Debtor: (i) fraudulently induced Mr. Price and Green Cook to enter into contracts with it; (ii) ousted him as co-manager after he took actions to report and stop illegal activity in violation of Florida's Whistleblower law; (iii) breached the employment agreement by terminating him as co-manager; and (iv) breached the applicable Operating Agreement. Mr. Price and Green Cook ask the Bankruptcy Court to lift the automatic stay to allow them to prosecute their compulsory counterclaims in the state court action. Mr. Price and Green Cook believe the Debtor's claims have no merit or that their counterclaims otherwise far exceed the Debtor's claims. They seek stay relief to obtain an affirmative judgment but not to take any measures to collect the judgment. Mr. Price and Green Cook point out that if no stay relief is granted, to seek affirmative relief they would then have to file a claim in this bankruptcy proceeding where the inevitable objection would be litigated. Thus, there would be two proceedings, one litigating the counterclaim defensively, and one litigating the counterclaim affirmatively. A hearing on the matter is also slated for June 11. About TLO LLC TLO LLC, a provider of risk-mitigation services, filed a petition for Chapter 11 reorganization (Bankr. S.D. Fla. Case No. 13-bk20853) on May 9, 2013, in West Palm Beach, Florida, near the company's headquarters in Boca Raton. The petition was signed by E. Desiree Asher as CEO. Judge Paul G. Hyman, Jr., presides over the case. Furr & Cohen serves as the Debtor's counsel. The Debtor disclosed assets of $46.6 million and liabilities of $109.9 million, including $93.4 million in secured claims. The principal lender is Technology Investors Inc., owed $89 million. TII is owned by the estate of Hank Asher, the company's primary owner who died this year. There is $4.6 million secured by computer equipment. A copy of the schedules filed together with the petition is available for free at: http://bankrupt.com/misc/flsb9-13-bk-20853.pdf Governmental entities have until Nov. 5, 2013 to file proofs of claim. TLO LLC: Furr and Cohen Hiring Has Interim Approval --------------------------------------------------- TLO LLC sought and obtained interim approval from the Bankruptcy Court to employ Robert C. Furr, Esq., and the law firm of Furr and Cohen, P.A. as general counsel. A final hearing is slated for June 11. The firm will, among other things, give advice to the Debtor with respect to its powers and duties as debtor-in-possession and will represent the Debtor in negotiations with creditors in the preparation of a plan. Neither the firm nor its attorneys represent any interest adverse to the Debtor. The firm will apply for compensation and reimbursement of costs at its ordinary rates and charges. There are no prepetition fees owed to the firm. About TLO LLC TLO LLC, a provider of risk-mitigation services, filed a petition for Chapter 11 reorganization (Bankr. S.D. Fla. Case No. 13-bk20853) on May 9, 2013, in West Palm Beach, Florida, near the company's headquarters in Boca Raton. The petition was signed by E. Desiree Asher as CEO. Judge Paul G. Hyman, Jr., presides over the case. Furr & Cohen serves as the Debtor's counsel. The Debtor disclosed assets of $46.6 million and liabilities of $109.9 million, including $93.4 million in secured claims. The principal lender is Technology Investors Inc., owed $89 million. TII is owned by the estate of Hank Asher, the company's primary owner who died this year. There is $4.6 million secured by computer equipment. TLO LLC: Taps Marcum LLP as Accountants --------------------------------------- TLO LLC sought and obtained interim approval from the Bankruptcy Court to employ Alan R. Barbee, CPA ABV and Marcum LLP as accountants nunc pro tunc to the Petition Date. A final hearing is slated for June 11. The firm will, among other things, assist the Debtor with the preparation of Federal Tax Returns and in maintaining books and records. The firm will apply for compensation and reimbursement of costs at its ordinary rates and charges. Mr. Barbee and the firm have agreed to accept compensation at these hourly rates: Category Hourly Rate -------- ----------- Partners $350 to $475 Senior Managers $275 to $360 Managers $230 to $270 Supervisors $180 to $240 Seniors $160 to $190 Staff $145 to $160 Paraprofessionals $75 to $130 The firm may be reached at: Alan R. Barbee, CPA. ABV MARCUM LLP 525 Okeechobee Boulevard, Suite 750 West Palm Beach, FL 33401 Tel: (561) 653-7350 About TLO LLC TLO LLC, a provider of risk-mitigation services, filed a petition for Chapter 11 reorganization (Bankr. S.D. Fla. Case No. 13-bk20853) on May 9, 2013, in West Palm Beach, Florida, near the company's headquarters in Boca Raton. The petition was signed by E. Desiree Asher as CEO. Judge Paul G. Hyman, Jr., presides over the case. Furr & Cohen serves as the Debtor's counsel. The Debtor disclosed assets of $46.6 million and liabilities of $109.9 million, including $93.4 million in secured claims. The principal lender is Technology Investors Inc., owed $89 million. TII is owned by the estate of Hank Asher, the company's primary owner who died this year. There is $4.6 million secured by computer equipment. TLO LLC: Rejecting Equifax Data License Deals & Goldberg Lease -------------------------------------------------------------- TLO LLC filed motions to reject data license agreements with Equifax Information Services LLC and an apartment lease with Jeffrey Goldberg. The Equifax agreements signed Feb. 1, 2012, March 23, 2012, and June 29, 2010, grants the Debtor the non-exclusive license to use certain furnished data by Equifax. The three Equifax agreements are either not essential to the continued operation of the Debtor's business or can be obtained from other sources at lesser amounts. In addition, there are specific issues with regard to the utilities contract. The lease with Goldberg pertains to the property known as 114 S.E. 7th Avenue, Unit No. 3, Delray Beach, Florida 33483 for a one year term ending December 31, 2013. The Debtor does not utilize the leased premises and has no need for the premises either in its on- going business operations or in connection with its reorganization efforts. About TLO LLC TLO LLC, a provider of risk-mitigation services, filed a petition for Chapter 11 reorganization (Bankr. S.D. Fla. Case No. 13-bk20853) on May 9, 2013, in West Palm Beach, Florida, near the company's headquarters in Boca Raton. The petition was signed by E. Desiree Asher as CEO. Judge Paul G. Hyman, Jr., presides over the case. Furr & Cohen serves as the Debtor's counsel. The Debtor disclosed assets of $46.6 million and liabilities of $109.9 million, including $93.4 million in secured claims. The principal lender is Technology Investors Inc., owed $89 million. TII is owned by the estate of Hank Asher, the company's primary owner who died this year. There is $4.6 million secured by computer equipment. TOBACCO SQUARE: Judge Makes Further Clarifications in PCB Suit -------------------------------------------------------------- In the complaint TOBACCO SQUARE LLC, Plaintiff, v. PUTNAM COUNTY BANK, Defendant, Adv. Proc. No. 12-06046 (Bankr. M.D.N.C.), Bankruptcy Judge Thomas W. Waldrep, Jr., denied in part, and granted in part, Tobacco Square's motion seeking amendments and clarification of the Bankruptcy Court's March 26, 2013 Memorandum Opinion. The March 26 Memorandum Opinion granted summary judgment in favor of PCB and denied the Debtor's summary judgment motion regarding the validity of PCB's $5 million lien against the Debtor's real property. The Debtor executed a deed of trust granting PCB a security interest in its real property in exchange for $5 million construction loan in May 2007. Another $5 million loan was extended in July 2008, and deeds of trust were executed to grant PCB security interests in the Debtor's personal property as well. In a May 15, 2013 Memorandum Opinion available at http://is.gd/8oOjEbfrom Leagle.com, Judge Waldrep denied the Debtor's request to (1) make amendments in the March 26 Opinion as to the description of indebtedness contained in the Construction Loan Agreement, and (2) make additional findings of fact on three notes outstanding on May 11, 2007. Judge Waldrep, however, grants the Debtor's request to (1) amend findings to reflect that the Construction Deed of Trust references the variable rate of interest and the $5 million obligation, and (2) make an additional finding of fact that the Construction Loan Agreement is a "related document" in light of the language on the Construction Deed of Trust. Based in Winston-Salem, North Carolina, Tobacco Square LLC filed a Chapter 11 bankruptcy petition (Bankr. M.D.N.C. Case No. 12-50856) on June 13, 2012, estimating under $10 million in both assets and debts. Tobacco Square owns residential apartment units in a building located in Winston-Salem, North Carolina. It also owns certain items of personal property associated with the apartments. Katherine J. Clayton, Esq., at Brooks, Pierce, Mclendon, Humphrey & Leonard, serves as the Debtor's counsel. The petition was signed by A. J. Rivenbark, manager. TRAFFIC CONTROL: Court Releases Epiq as Claims & Noticing Agent --------------------------------------------------------------- The U.S. Bankruptcy Court has approved TCSC Liquidating Trustee's motion to release Epiq Bankruptcy Solutions LLC as claims and noticing agent. The Official Committee of Unsecured Creditors appointed in the case notified the Bankruptcy Court that the effective date of its Plan of Liquidation for the Debtor occurred Nov. 30, 2012. The Committee won confirmation of the Plan on Nov. 8, 2012. Under the Plan, GlassRatner Advisory and Capital Group LLC will be the liquidating trustee. Traffic Control and Safety Corporation and six subsidiaries filed Chapter 11 petitions (Bankr. D. Del. Lead Case No. 12-11287) on April 20, 2012. TCSC is the largest independent provider of safety services and products in California and Hawaii. Formed by Marwit Capital Partners II, L.P., in June 2007, TCSC has 430 full- time employees and serves state and local agencies, public works organizations, general contractors, the motion picture industry, and provide services at special events. TCSC estimated assets of up to $50 million and debts of up to $100 million as of the Chapter 11 filing. Toomey Industries, Inc. disclosed $10,322,077 in assets and $67,844,144 in liabilities as of the Chapter 11 filing. Judge Kevin J. Carey presides over the case. Latham & Watkins LLP serves as the Debtors' bankruptcy counsel and Young Conaway Stargatt & Taylor LLP as Delaware counsel. Broadway Advisors, LLC serves as financial advisors, and Epiq Bankruptcy Solutions LLC as the claims and notice agent. The Debtors won authority to (i) use cash collateral in which the First Lien Lender has an interest, and (ii) obtain postpetition financing from Fifth Street Finance Corp. and other entities in the maximum amount of $12,775,000. In July 2012, the Bankruptcy Court approved the sale of the Debtor's assets to a company controlled by Fifth Street Finance Corp. The auction that month was cancelled after no other party submitted a bid that would rival the stalking horse offer by the company's lenders. Second-lien creditors signed a deal to buy the company in exchange for $20 million of the junior secured debt. In addition, they would assume the first-lien obligations of about $18.5 million, pay expenses of the Chapter 11 case, and provide $500,000 toward expenses not paid with financing for the reorganization. When the sale completed, the second-lien lenders waived the remainder of their claim. Roberta A. DeAngelis, the U.S. Trustee for Region 3, appointed five unsecured creditors to the Official Committee of Unsecured Creditors. The Committee tapped Potter Anderson & Corroon LLP as its counsel and GlassRatner Advisory & Capital Group LLP as its financial advisor. TRAINOR GLASS: Miriam R. Stein Authorized to Withdraw as Counsel ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois authorized Miriam R. Stein to withdraw her appearance as attorney for Trainor Glass Company. As reported in the Troubled Company Reporter on April 15, 2013, Ms. Stein has left the law firm of Arnstein & Lehr LLP. The Debtor is still being represented by Ms. Stein's former colleagues at Arnstein & Lehr LLP. The Debtor has been notified of Ms. Stein's request to withdraw and, upon information and belief, has asserted no objection. About Trainor Glass Trainor Glass Company, doing business as Trainor Modular Walls, Trainor Solar, and Trainor Florida, filed for Chapter 11 bankruptcy (Bankr. N.D. Ill. Case No. 12-09458) on March 9, 2012. Trainor was founded in 1953 by Robert J. Trainor Sr. to pursue a residential glass business in Chicago, Illinois. Trainor's business model was focused on quality fabrication, design, engineering, and installation of glass products and framing systems in virtually every architectural application, including (a) new construction, (b) green-building solutions, (c) building rehabilitation, (d) storefronts and entrances, (e) tenant interiors, and (f) custom-specialty work. The Hon. Carol A. Doyle oversees the Chapter 11 case. David A. Golin, Esq., Michael L. Gesas, Esq., and Kevin H. Morse, Esq., at Arnstein & Lehr LLP, serve as the Debtor's counsel. High Ridge Partners, Inc., serves as its financial consultant. The Debtor has tapped Cole, Martin & Co., Ltd., to render certain auditing services related to the Debtor's 401(k) and profit sharing plan. The Debtor scheduled $14,276,745 in assets and $64,840,672 in liabilities. A three-member official committee of unsecured creditors has been appointed in the case. The committee retained Sugar Felsenthal Grais & Hammer LLP as counsel. TRI-STATE FINANCIAL: Trustee's Fees & Expenses Allowed ------------------------------------------------------ In the lawsuit, THOMAS D. STALNAKER, Trustee, Plaintiff(s), v. GEORGE ALLISON, et al., Defendant(s), Case No. A10-8052-TJM (Bankr. D. Neb.), Bankruptcy Judge Timothy J. Mahoney allowed the trustee's fees and expenses and held that funds received from the South Dakota litigation may be surcharged for all of it. Mr. Stalnaker, the trustee of Tri-State Financial LLC, litigated in the South Dakota bankruptcy case of Tri-State Ethanol L.L.C. to obtain funds for the estate of TSF. A part of that litigation was based on a proof of claim filed in the TSE case by TSF prior to TSF's bankruptcy filing in Nebraska. The trustee in the Nebraska case met with James G. Jandrain, a representative of TSF, and with counsel for Centris Federal Credit Union which claimed a lien on the funds represented by the proof of claim. At no time during the South Dakota litigation and negotiations did Mr. Jandrain or any member of TSF suggest to the trustee, his counsel, or counsel for Centris that they, individually, actually owned the claim in the South Dakota bankruptcy case. Instead, they, mainly through Mr. Jandrain, supported the trustee's position that TSF had a right to the funds. Eventually, the TSF trustee settled with the South Dakota trustee and dismissed other pending litigation in the South Dakota case so that the TSF estate could obtain possession of $1,190,000 related to its proof of claim. After the TSF trustee received the $1,190,000, Mr. Jandrain and the other defendants in the TSF Trustee's adversary proceeding, other than Centris, informed the trustee that the money belonged to them -- referred to in court documents as the Omaha Group. The TSF trustee commenced the adversary proceeding naming the members of the Omaha Group and Centris as defendants. Centris filed a cross-claim asserting that its rights took priority over the Omaha Group and asserting that the trustee should recognize its lien rights to the fund, since it was owed significantly more than the TSF trustee had recovered. Trial was held and an order was entered finding that the money from the South Dakota bankruptcy estate was not the property of the TSF estate, but did represent repayment to the Omaha Group for funds the Omaha Group had provided TSE to keep it operational during its Chapter 11 case. The order additionally provided that the trustee should be compensated for the services provided and expenses incurred in obtaining the funds from the South Dakota bankruptcy estate and for litigating the ownership issue with the Omaha Group. The TSF trustee has provided a statement of fees and expenses, including $35,944 for the South Dakota litigation and $61,886 for the litigation over the ownership of the funds. He has requested that the funds be surcharged for the fees and expenses so that creditors of TSF will receive some distribution. American National Bank, an assignee of Mr. Jandrain's interest, filed a limited objection which was joined by the other defendants, except Centris. The objectors agree that the services rendered and fees requested by the trustee are reasonable and that the $35,944 charged for litigating to obtain the funds should be a surcharge to the funds. However, they believe fees and expenses charged for litigating with them over ownership of the funds should simply be paid from property of the estate and not from the funds which were found to be theirs and not property of the TSF estate. The TSF trustee and Centris take the position that they were misled by the Omaha Group when dealing with the litigation in the South Dakota case. Had they been informed prior to dismissing the South Dakota litigation and settling with the South Dakota trustee that the Omaha Group claimed ownership of the money, and that the TSF estate should not benefit from settlement of the claim in South Dakota, the trustee's litigation position may well have been different, especially since the money was obtained only by settling the litigation. Judge Mahoney notes that the trustee's litigation position in his adversary proceeding was reasonable from the commencement until completion. He acted on behalf of creditors of the estate. The books and records of TSF, from its inception until 2005, appeared to show the Omaha Group made equity investments in TSF, not simply money transfers to keep TSE viable. The Omaha Group made no assertion of ownership of the South Dakota claim until after the trustee settled and obtained the funds. The records of TSF and the actions or failure to act by the Omaha Group were the causes of this litigation. The Omaha Group should not now be rewarded for misleading the trustee at the expense of the creditors of the bankruptcy estate. Centris is the largest administrative and unsecured creditor. If the surcharge is denied, it will effectively be left as the entity financing the litigation caused by the Omaha Group. It will be such financing entity because most of the remaining estate funds will be used to pay the trustee's fees and expenses, thereby depleting or eliminating distribution to Centris and the other creditors. According to Judge Mahoney, the equities in this situation favor the trustee and Centris. The fund may be surcharged both for the South Dakota litigation and for the litigation of the ownership of the fund. A copy of the Court's May 21, 2013 order is available at http://is.gd/Zuehq6from Leagle.com. Tri-State Financial LLC, owner of the North Country Ethanol plant near Rosholt, South Dakota, filed a Chapter 11 petition (Bankr. D. Neb. Case No. 08-83016) on Nov. 21, 2008, in Omaha, Nebraska. The company listed assets of $35 million and debt totaling $27 million. Centris Federal Credit Union holds a secured claim aggregating $19.6 million. TRI-VALLEY VINEYARDS: Can't Appeal Order Denying TRO ---------------------------------------------------- District Judge Yvonne Gonzalez Rogers denied Tri-Valley Vineyards LLC's emergency motion seeking leave to appeal an order denying a temporary restraining order. A bankruptcy judge denied the motion for a TRO for lack of standing because only the trustee has the capacity to sue on behalf of the bankruptcy estate. Tri-Valley Vineyards filed a voluntary Chapter 11 petition on Oct. 24, 2011 (Bankr. N.D. Cal., Case No. 11-70942) to prevent its creditor, Mechanics Bank, from proceeding with a non-judicial foreclosure on real property. The bankruptcy judge appointed a trustee for the bankrupt estate on Sept. 1, 2012. The bankruptcy court went on to modify the automatic stay on March 28, 2013, to allow the Trustee to proceed with a non-judicial foreclosure on the real property. The Trustee's motion for approval of the real property sale was granted on May 9, 2013. In a May 14, 2013 order available at http://is.gd/axr3XPfrom Leagle.com, Judge Rogers agreed that the bankruptcy judge correctly concluded that Tri-Valley Vineyards does not have standing to assert claims on behalf of the bankruptcy estate. The case is TRI-VALLEY VINEYARDS, LLC, Plaintiff, v. MECHANICS BANK, Defendant, Case No. 13-MC-80103 YGR (N.D. Cal). UNITEK GLOBAL: Given Until July 31 to Refinance Debt ---------------------------------------------------- UniTek Global Services, Inc., said that its subsidiary, DirectSat USA, LLC, has received a letter from DIRECTV, LLC, providing 180- day notice of the termination of its master services agreement with DirectSat, effective Nov. 8, 2013. Shortly following receipt of the notice, DirectSat entered into an agreement with DIRECTV providing that the 180-day notice of termination will be automatically withdrawn upon the Company's refinancing, by July 31, 2013, of its debt on terms that satisfy certain financial requirements, the continued work on completion of its financial statements and the satisfaction of other conditions. DIRECTV has informed the Company that it intends to continue working with the Company as UniTek addresses the issues it currently faces related to the previously disclosed accounting matters. Dave Baker, senior vice president of DIRECTV stated, "While we take our rights seriously, we do value our relationship with UniTek and have been pleased with their service and performance. We will continue to work with them over the next several months as the Company completes its financial statements and public filings, and resolves other issues they are currently confronting." Acknowledging DIRECTV's intent to assist the Company, Rocky Romanella, CEO of UniTek, said that the Company intends to move forward in working with DIRECTV and its other customers as it continues its efforts to resolve the previously disclosed issues and complete its required public filings. "I believe that we can resolve our outstanding issues in a manner and on a timeframe that will allay DIRECTV's concerns and enable us to maintain our strategic partnership with them. We are making significant progress toward the completion of the restatements and filing of our SEC reports, and are engaged in active discussions with lenders regarding our outstanding debt. We are appreciative of DIRECTV's support during this time and their agreement to automatically withdraw the notice once we meet the required conditions." About UniTek UniTek Global Services, Inc., based in Blue Bell, Pennsylvania, provides fulfillment and infrastructure services to media and telecommunication companies in the United States and Canada. As reported by the TCR on April 23, 2013, Moody's Investors Service lowered all of Unitek Global Services, Inc.'s credit ratings by two notches including its Corporate Family Rating to Caa1 from B2. These actions follow the company's announcement that as a result of revenue recognition issues at its Pinnacle Wireless division, Unitek's previously issued consolidated financial statements dating back to the interim period ended Oct. 1, 2011, should no longer be relied upon, including with regards to the effectiveness of internal control over financial reporting. In the April 19, 2013, edition of the TCR, Standard & Poor's Ratings Services lowered its corporate credit rating on Blue Bell, Pa.-based UniTek Global Services Inc., to 'CCC' from 'B+'. "The rating actions follow UniTek's report that certain employees in its Pinnacle Wireless subsidiary engaged in fraud that resulted in improper revenue recognition," said Standard & Poor's credit analyst Michael Weinstein. UNIVERSAL HEALTH: Wants BankUnited to File Adversary Proceeding --------------------------------------------------------------- Universal Health Care Group, Inc., asks the U.S. Bankruptcy Court for the Middle District of Florida to deny a motion of BankUnited, N.A., for entry of an order granting stay relief to enforce rights of secured parties over tax refund, dated March 28, 2013, and require BankUnited, N.A., to commence an adversary proceeding to determine the relative rights of the parties to the tax sharing agreement and the extent, validity and priority of the lenders' lien in the tax refund. On March 6, 2013, the Debtor and BankUnited, N.A., as administrative agent for itself and other lenders, entered into an agreed order granting motion of BankUnited, N.A., to prohibit use of cash collateral. Paragraph 3 of the agreed order provides that the tax refund that is the subject of the stay motion "shall remain on deposit in the Debtor's debtor-in-possession account maintaines at BankUnited...without prejudice to, and pending further order of the Court determining the relative rights and priorities of the debtor and the lenders as of the Petition Date with respect to those funds and any related issue." About Universal Health Care Universal Health Care Group, Inc., owns an insurance company and three health-maintenance organizations that provide managed care services for government sponsored health care programs, focusing on Medicare and Medicaid. Universal Health was founded in 2002 by Dr. A.K. Desai and grew its operations of offering Medicare plans to more than 37,000 members to over 20 states. Universal Health filed a Chapter 11 bankruptcy protection (Bankr. M.D. Fla. Case No. 13-01520) on Feb. 6, 2013, after Florida regulators moved to put two of the company's subsidiaries in receivership. Universal Health Care estimated assets of up to $100 million and debt of less than $50 million in court filings in Tampa, Florida. Harley E. Riedel, Esq., at Stichter Riedel Blain & Prosser, in Tampa, serves as counsel to the Debtor. VANDERRA RESOURCES: Amends Plan of Liquidation ---------------------------------------------- Vanderra Resources, LLC, and its Official Committee of Unsecured Creditors submitted to the Bankruptcy Court a Second Amended Joint Plan of Liquidation as modified on May 13, 2013. According to the Disclosure Statement, the Plan provides for this treatment of claims: Class 1: Secured Claims of PlainsCapital Bank ($5,500,000) will be paid out of available cash on the Effective Date. Class 2: Secured Claims of Stone Arch Capital, either in whole or in part, will be paid out of the portion of the disputed cash that is subject to the full satisfaction of any senior security interests to Stone Arch Capital. Class 3: Secured Tax Claims will be fully satisfied within 30 days after the later of (a) the Plan Effective Date or (b) becoming an Allowed Secured Tax Claim. Each holder of an Allowed Secured Tax Claim will retain all Liens securing the same until paid, and this Plan does not modify or affect the validity, extent or priority of such Liens. Class 4: Other Secured Claims will be fully satisfied within 30 days after the later of (a) the Effective Date or (b) becoming an Allowed Other Secured Claim. Each holder of an Allowed Other Secured Claim will retain all Liens securing the same, until paid, and this Plan does not modify or affect the validity, extent or priority of such Liens. Class 5: Priority Non-Tax Claims will be paid in full from available cash within 30 days after the later of (a) the Effective Date or (b) becoming an Allowed Priority Non-Tax Claim. Class 6: General Unsecured Claims will be paid from available cash Pro Rata by the trustee on any distribution date when such available cash exists. Class 7: Subordinated Claims will be paid from available cash pro rata by the trustee on any distribution date when such available cash exists. Class 8: Interests will be deemed canceled on the Effective Date; provided, however, that holders of Class 8 Interests as of the Effective Date, or their successors or assigns, will be paid from available cash pro rata by the trustee on any distribution date when such available cash exists. Copies of the Disclosure Statements are available for free at: http://bankrupt.com/misc/VANDERRA_RESOURCES_modifiedplan.pdf http://bankrupt.com/misc/VANDERRA_RESOURCES_plan.pdf http://bankrupt.com/misc/VANDERRA_RESOURCES_planb.pdf Kevin M. Lippman, Esq., and Davor Rukavina, Esq., at Munsch Hardt Kopf & Harr, P.C. represent the Debtor. Andrew E. Jillson, Esq., Cameron W. Kinvig, Esq., and Jesse T. Moore, Esq., at Hunton & Williams LLP represent the Committee. About Vanderra Resources Vanderra Resources LLC is an innovator and leader in the oil-field services industry, providing one stop solutions for the setup of drilling sites, including the construction of well site locations and roads, compressor pads, pipelines, and frac ponds. Vanderra Resources filed a Chapter 11 petition (Bankr. N.D. Tex. Case No. 12-45137) in Fort Worth, Texas, on Sept. 9, 2012. The Debtor estimated assets and debts of at least $10 million. The Debtor filed for bankruptcy to address its legacy debt issues, to finalize its restructuring into a smaller, more profitable company, and to preserve and enhance its going concern value for the benefit of its vendors, customers, creditors, employees, and all stakeholders. Bankruptcy Judge D. Michael Lynn oversees the Debtor's case. Kevin M. Lippman, Esq., and Davor Rukavina, Esq., at Munsch Hardt Kopf & Harr, P.C., serve as the Debtor's counsel. The petition was signed by George Langis, president and chief operating officer. The Debtor disclosed $26,319,392 in assets and $24,066,68 in liabilities as of the Chapter 11 filing. VANN'S INC: Perkins Coie, Hamstreet to Split $336K Carve-Out ------------------------------------------------------------ Bankruptcy Judge John L. Peterson ruled that Perkins Coie and Hamstreet & Associates will have to split the $335,782 balance of the professional fee carve-out as payment for their work in Vann's Inc.'s failed restructuring. "I conclude that it is only equitable and fair that Perkins and Hamstreet split that sum, with an award of $167,891.39 to each as a reasonable final fee and cost award, particularly in light of the pre-petition bankruptcy services paid of over $400,000," Judge Peterson said. The judge also ruled that all other pending objections filed by the Chapter 7 Trustee and First Interstate Bank to both firms' fee applications are denied. In their fee applications, Perkins Coie sought payment of $318,332 while Hamstreet billed $501,047. As of the chapter 11 petition date, Hamstreet had an outstanding bill of $4,648 and Perkins had a pre-petition fee and expense amount owed of $31,374. Hamstreet's fee request includes $5,535 for preparing its fee application after the appointment of a Chapter 11 Trustee, and likewise Perkins claims $6,631 in fees and expenses after the appointment of the Chapter 11 Trustee. As to Perkins, it waived any claims for pre-petition fees as an administrative expense in its employment application. The Court also rejected the Chapter 7 Trustee's contention that Hamstreet used independent contractors in the performance of its obligation to the estate as those services were paid by Hamstreet from its fee request pursuant to a stipulation with the U.S. Trustee that a sharing arrangement conflicts with 11 U.S.C. Sec. 504. The U.S. Trustee and Hamstreet entered into two stipulations that resolved this issue which were approved by the Court. A copy of the Court's May 21, 2013 Memorandum of Decision is available at http://is.gd/meavowfrom Leagle.com. About Vann's Inc. Vann's Inc. -- http://www.vanns.com/-- a retailer of appliances and consumer electronics with five stores in Montana, filed for Chapter 11 protection (Bankr. D. Mont. Case No. 12-61281) in Butte, Montana, on Aug. 5, 2012. Founded in 1961, Vann's also owned outdoor clothing and sports products at http://www.bigskycountry.com/ Vann's was owned by an employee stock ownership plan trust. By the Chapter 11 bankruptcy petition date, Vann's employed 160 persons in 5 retail stores, and Apple designed mobile store in Missoula (OnStore), a warehouse in Lolo and a call center in Missoula. Vann's sold appliances, consumer goods and related products together with outdoor equipment, and clothing, footwear for outdoor activities. E-Commerce sales represented one half of total company sales. In 2011, Vann's generated a total of $100.8 million in sales, but suffered a net loss of $1.3 million. Substantial losses began in 2008. Vann's Inc. disclosed assets of $17.6 million and liabilities of $14.4 million. Assets include $12.2 million cost-value of inventory plus $1 million in current accounts receivable. The Company owes $4 million to First Interstate Bank. It also owes $4.8 million on an inventory loan from GE Commercial Distribution Finance Corp. Bankruptcy Judge John L. Peterson presides over the case. Vann's hired Perkins Coie LLP's Alan D. Smith, Esq., and Brian A. Jennings, Esq., as counsel; and Hamstreet & Associates, LLC, as turnaround and restructuring advisors. Prepetition lender GE Commercial Distribution Finance Corporation is represented by Gary Vincent, Esq., at Husch Blackwell LLP, and the Law Offices of John P. Paul, PLLC. First Interstate Bank, the DIP Lender, is represented by Benjamin P. Hursh, Esq., at Crowley Fleck PLLP. The U.S. Trustee formed a seven-member creditors committee. The Committee is represented by Halperin Battagia Raicht, LLP, and Ross Richardson. The Court appointed Montana lawyer Richard J. Samson as trustee for Vann's on Oct. 3, 2012. On Oct. 26, the Court approved the stipulation between the Chapter 11 Trustee, First Interstate Bank, GE, the Creditors' Committee and U.S. Trustee to convert the case to Chapter 7. In November, the Court approved the sale of five Vann's retail stores to Texas-based McMagic Partners LP. Pursuant to the $4.5 million deal, McMagic acquired the retail electronic and appliance stores in Missoula, Hamilton, the Flathead Valley, Billings and Bozeman. McMagic is owned by a Florida-based company that runs a chain of electronics stores in the Southwest. VERTICAL COMPUTER: Delays Q1 Form 10-Q for Refinancing Issues ------------------------------------------------------------- Vertical Computer Systems, Inc., has experienced unexpected delays in coordinating and finalizing its 10-Q report due to issues arising from refinancing of its secured debt. Accordingly, the Company is unable to file its Form 10-Q on or before the prescribed filing date. The Company expects to file the Form 10-Q within five days after the prescribed filing date. Net loss applicable to common shareholders for the three months ended March 31, 2013, as compared to March 31, 2012, has increased approximately $95,000 primarily due to a decrease in software maintenance revenue as a result of non-renewal of software maintenance contracts by two customers and an increase in selling, general and administrative expenses related to increased legal fees to prosecute patent infringement on the Company's intellectual property. About Vertical Computer Richardson, Tex.-based Vertical Computer Systems, Inc., is a multinational provider of Internet core technologies, application software, and software services through its distribution network with operations or sales in the United States, Canada and Brazil. In the auditors' report accompanying the consolidated financial statements for the year ended Dec. 31, 2011, MaloneBailey, LLP, in Houston, Texas, noted that the Company suffered net losses and has a working capital deficiency, which raises substantial doubt about its ability to continue as a going concern. Vertical Computer disclosed a net loss of $1.31 million on $5.47 million of total revenues for the year ended Dec. 31, 2012, as compared with a net loss of $167,588 on $6.27 million of total revenues for the year ended Dec. 31, 2011. The Company's balance sheet at Dec. 31, 2012, showed $1.58 million in total assets, $14.55 million in total liabilities and $9.90 million in convertible cumulative preferred stock, and a $22.87 million total stockholders' deficit. MaloneBailey, LLP, in Houston, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012, citing net losses and a working capital deficiency, which raises substantial doubt about the Company's ability to continue as a going concern. VIGGLE INC: Had $3.3 Million in Revenue in F3Q 2013 --------------------------------------------------- Viggle, Inc., generated $3.395 million in revenue in F3Q 2013, a 510 percent increase compared to $0.556 million in F3Q 2012, during which Viggle launched its application on Jan. 25, 2012. In the traditionally slowest quarter of the year for TV and brand advertising, Viggle's revenue dropped by 12 percent compared to F2Q 2013, when revenues were $3.875 million. This is in line with some other companies with similar revenue markets, some of which saw declines of up to 20 percent. The growth over last year is due to the continued acceptance of Viggle among advertisers and networks. During the quarter, nineteen brand advertisers and nine TV networks partnered with Viggle to run second screen integrated ad campaigns. Brand activations are driving key performance indicators for partners such as brand awareness and intent to purchase. For network partners, Viggle is driving the discovery of new shows, reminders to tune in and show engagement. Registered users increased by 515 percent in the past year and 35 percent during the quarter. Viggle totaled 2.183 million as of the end of F3Q 2013, compared to 0.355 million as of the end of F3Q 2012, and compared to 1.623 million at the end of F2Q 2013. That trend continued in April 2013, with another 12 percent increase, giving Viggle 2.445 million registered users through the end of April. Viggle is also seeing continued growth among monthly active users, which increased by 54 percent, quarter-to-quarter. For F3Q 2013, Viggle saw an average of 599,317 monthly active users, as opposed to an average of 389,735 in F2Q 2013. Viggle saw continued growth in April with monthly active users of 667,907. Monthly active users are computed by determining those users that have logged into the Viggle app at any time during the month. "We are seeing a steady and sizeable growth in registered and active users, making it clear to us that Viggle is becoming more widely accepted by the viewing public," said Greg Consiglio, Viggle President and COO. "The outstanding growth in our first actual quarter-to-quarter comparison is further confirmation that the type of promotions we are running are resonating with the advertising community and our network partners. We are excited about our ability to build on this momentum." Consiglio noted that a core focus of Q3 was developing Viggle's nationwide television campaign and securing partnerships with networks, brands and agencies. Viggle unveiled a "Watch and Win" promotion with The Ellen DeGeneres Show and teamed with the NBA for the league's 2013 playoffs. Viggle also commissioned TV research giant Nielsen to conduct research that will guide product development with deeper understanding of the user base and their habits. For F3Q 2013, Viggle had an Adjusted EBITDA loss of $8.803 million as compared to an adjusted EBITDA loss of $6.451 million in F2Q 2013, as compared to an Adjusted EBITDA loss of $8.484 million in F1Q 2013. Revenue exceeded the cash cost of rewards each month in the quarter. The sequential increase in EBITDA losses is directly attributable to an increase in marketing spending to grow Viggle's user base, $594,000 legal fees plus the $500,000 break-up fee for ending a proposed merger with GetGlue, and a decline in revenues, partially offset by a slight decrease in the cash cost of rewards. About Viggle New York City-based Viggle Inc. is a loyalty marketing company. The Company has developed a loyalty program for television that gives people real rewards for checking into the television shows they are watching on most mobile operating system. Viggle users can redeem their points in the app's rewards catalog for items such as movie tickets, music, or gift cards. As reported in the TCR on Oct. 22, 2012, BDO USA, LLP, in New York City, expressed substantial doubt about Viggle's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations and at June 30, 2012, has deficiencies in working capital and equity. VYSTAR CORP: Delays Filing of Annual and Periodic Reports --------------------------------------------------------- Vystar Corporation was not able to file its quarterly report on Form 10-Q in a timely manner because of previous delays in beginning the on-site audit process by the Company's auditors as a result of overdue accounts payable due the auditors. As a result, the Company's annual report on Form 10-K for the year ended Dec. 31, 2012, has not been completed or filed. It is anticipated that the Annual Report on Form 10-K will be filed on or about May 31, 2013, and that the Quarterly Report on Form 10-Q will be filed as soon as possible thereafter. About Vystar Corp Duluth, Ga.-based Vystar Corporation is the creator and exclusive owner of the innovative technology to produce Vytex(R) Natural Rubber Latex. This technology reduces antigenic protein in natural rubber latex products to virtually undetectable levels in both liquid NRL and finished latex products. Bankruptcy Warning According to the Company's quarterly report on Form 10-Q for the period ended June 30, 2012, there can be no assurances that the Company will be able to achieve its projected level of revenues in 2012 and beyond. "If the Company is unable to achieve its projected revenues and is not able to obtain alternate additional financing of equity or debt, the Company would need to significantly curtail or reorient its operations during 2012, which could have a material adverse effect on the Company's ability to achieve its business objectives and as a result may require the Company to file for bankruptcy or cease operations." Habif, Arogeti & Wynne, LLP, in Atlanta, Georgia, expressed substantial doubt about Vystar's ability to continue as a going concern, following its results for the fiscal year ended Dec. 31, 2011. The independent auditors noted that the Company has recurring losses from operations, a capital deficit, and limited capital resources. The Company's balance sheet at Sept. 30, 2012, showed $1.31 million in total assets, $2.57 million in total liabilities and a $1.25 million total stockholders' deficit. W. O. WHITE: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: W. O. White, LLC 5905 Neuse Road Grantsboro, NC 28529 Bankruptcy Case No.: 13-03316 Chapter 11 Petition Date: May 22, 2013 Court: United States Bankruptcy Court Eastern District of North Carolina (Wilson) Judge: Stephani W. Humrickhouse Debtor's Counsel: Trawick H Stubbs, Jr., Esq. STUBBS & PERDUE, P.A. P.O. Drawer 1654 New Bern, NC 28563 Tel: (252) 633-2700 Fax: (252) 633-9600 E-mail: efile@stubbsperdue.com Scheduled Assets: $1,780,707 Scheduled Liabilities: $3,138,523 A list of the Company's 20 largest unsecured creditors, filed together with the petition, is available for free at http://bankrupt.com/misc/nceb13-3316.pdf The petition was signed by William O'Neal White, member-manager. WAVE SYSTEMS: Posts Financial Statements of Safend -------------------------------------------------- Wave Systems Corp. delivered to the U.S. Securities and Exchange Commission the audited consolidated financial statements of Safend Ltd. and its subsidiaries for the period commenced Jan. 1, 2011, and ended Sept. 22, 2011. Safend Ltd., an Israeli Company, was incorporated and commenced operations on March 4, 2003. The Company is engaged in research, development, manufacturing and selling of computer security products. On Sept. 22, 2011, Wave Systems acquired all of the issued and outstanding share capital of Safend. Safend incurred a net loss of $2.27 million on $4.75 million of revenues for the period from Jan. 1, 2011, through Sept. 22, 2011. Safend's balance sheet as of Sept. 22, 2011, showed $2.59 million in total assets, $5.74 million in total liabilities and a $3.15 million total shareholders' deficit. Somekh Chaikin, issued a "going concern" qualification on the consolidated financial statements of Safend for the period ended Sept. 22, 2012. The independent auditors noted that the Company has suffered recurring losses from operations and has an accumulated deficit that raise substantial doubt about its ability to continue as a going concern. A copy of the Report is available for free at: http://is.gd/QRv4JT About Wave Systems Lee, Massachusetts-based Wave Systems Corp. (NASDAQ: WAVX) -- http://www.wave.com/-- develops, produces and markets products for hardware-based digital security, including security applications and services that are complementary to and work with the specifications of the Trusted Computing Group, an industry standards organization comprised of computer and device manufacturers, software vendors and other computing products manufacturers. KPMG LLP, in Boston Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that Wave Systems Corp. has suffered recurring losses from operations and has an accumulated deficit that raise substantial doubt about its ability to continue as a going concern. For the 12 months ended Dec. 31, 2012, the Company incurred a net loss of $33.96 million, as compared with a net loss of $10.79 million in 2011. The Company's balance sheet at March 31, 2013, showed $10.77 million in total assets, $22.19 million in total liabilities and a $11.42 million total stockholders' deficit. WINDSORMEADE OF WILLIAMSBURG: Court Confirms Amended Ch.11 Plan --------------------------------------------------------------- Virginia United Methodist Homes of Williamsburg, Inc., has won confirmation of its Amended/Modified Plan of Reorganization which provides for cash considerations to make payments or distributions pursuant to the Plan will be obtained from (1) existing cash balances in the Reorganized Debtors' unrestricted accounts, (2) net cash proceeds from the issuance of the Series 2013C Senior Bonds, (3) the capital contribution of the Debtor's owner Virginia United Methodist Homes, Inc., and (4) borrowings under the revolving loan facility that VUMH will provide to the Debtor to supplement its liquidity after it emerges from bankruptcy. As reported by the Troubled Company Reporter on April 17, 2013, the Amended Disclosure Statement provided for, among others, the following modifications: -- The amount of the Class 2 - Series 2007 A/B Bond Claims is increased from $48,325,000 to $48,750,833. -- Class 3 is composed of Series 2007C Bond Claims and L/C Claims. -- Holders of Allowed Series 2007 A/B Bond Claims and Series 2007C Bonds Claims and L/C Claims, in full and final satisfaction and discharge of and in exchange for the Allowed Claims, will receive the Series 2013A Senior Bonds, the Series 2013A Subordinate Bonds, and the Series 2013B Senior Bonds. All parties asserting claims as defined in Sections 101(5) and 501 of the Bankruptcy Code are required to file proofs of claim on or before 5:00 p.m. (EST) on April 30, 2013. The General Claims Bar Date will not apply to any current resident as of the General Claims Bar Date who holds a claim against the Debtor under his/her residency agreement. A blacklined version of the modified Disclosure Statement dated April 10 is available for free at: http://bankrupt.com/misc/VIRGINIAUNITEDds0410.pdf About WindsorMeade of Williamsburg Virginia United Methodist Homes of Williamsburg, Inc., doing business as WindsorMeade of Williamsburg, filed a Chapter 11 petition (Bankr. E.D. Va. Case No. 13-31098) on March 1, 2013. WindsorMeade of Williamsburg is a continuing care retirement community located on a 105 acre parcel of real property leased by sponsor Virginia United Methodist Homes Inc. The facility includes 181 independent living units with an 80% occupancy rate, 14 assisted living apartments with 65% occupancy and 12 skilled nursing beds with 75% occupancy. DLA Piper LLP (US) and Hirschler Fleischer, P.C. serve as counsel to the Debtor. Deloitte Financial Advisory Services LLP serves as financial advisor. McGuire Woods LLP is special bond counsel. BMC Group Inc. is the claims agent. The prepetition lender, UMB Bank, NA, is represented by Christian & Barton, LLP. The Debtor estimated assets and debts of $100 million to $500 million. WVSV HOLDINGS: Hearing on Case Dismissal Continued to June 3 ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Arizona approved a stipulation continuing until June 3, 2013, the hearing to consider secured creditor 10K, L.L.C.'s motion to dismiss the Chapter 11 case of WVSV Holdings, LLC. 10K and the Debtor believe that the judicial economy and the interests of the estate and creditors would be best served by continuing the hearing on the motion to dismiss to a later date, for these reasons: 1. also pending before the Court are 10K's Creditor's Plan of Reorganization dated April 5, 2013; 10K's motion for relief from stay, and 10K's motion to stay; the Debtor's motion for authorization to sell real property -- all of which are calendared to come on for hearing on June 3; 2. the outcome of ruling on the other pending matters may lead the parties to resolve the motion to dismiss without further involvement of the Court. The parties previously entered a stipulation continuing the hearing to April 29. 10K LLC is represented by: Michael McGrath, Esq. David J. Hindman, Esq. MESCH, CLARK & ROTHSCHILD, P.C. 259 North Meyer Avenue Tucson, AR 85701 Tel: (520) 624-8886 Fax: (520) 798-1037 E-mail: ecfbk@mcrazlaw.com mmcgrath@mcrazlaw.com dhindman@mcrazlaw.com - and - Daniel Dowd, Esq. Daniel Durchslag, Esq. COHEN KENNEDY DOWD & QUIGLEY, P.C. 2425 East Camelback Road, Suite 1100 Phoenix, AR 85016 Tel: (602) 252-8400 Fax: (602) 252-5339 E-mail: dowd@ckdqlaw.com ddurchslag@ckdqlaw.com About WVSV Holdings W.V.S.V. Holdings LLC, the owner of about 13,000 acres of vacant land in Buckeye, Arizona, filed a petition for Chapter 11 protection (Bankr. D. Ariz. Case No. 12-10598) on May 14, 2012, in Phoenix. The Debtor claims that the three tracts of land planned for "future development" are worth $120 million and secure $57.3 million in debt. The Debtor scheduled $120.04 million in assets and $57.35 million in liabilities. West Valley Ventures, LLC, owns 75% of the Debtor, and Breycliffe, LLC, owns the remaining 25%. Judge Redfield T. Baum, Sr., presides over the case. Michael W. Carmel, Esq., serves as the Debtor's counsel. The petition was signed by Lee Allen Johnson, manager of West Valley Ventures, manager. The U.S. Trustee has not appointed an official committee of unsecured creditors in the Debtor's case because an insufficient number of persons holding unsecured claims against the Debtor have expressed interest in serving on a committee. The U.S. Trustee reserves the right to appoint the committee should interest develop among the creditors. Under the Plan filed in the Debtor's case, each holder of general unsecured claims will receive 100% of its allowed general unsecured claim. Payments will be made in four equal semi-annual payments. WYLDFIRE ENERGY: Lain Faulkner Approved as Accountant ----------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas authorized, in an amended order, Wyldfire Energy, Inc. to employ Lain, Faulkner & Co., P.C., to provide accounting service to the Debtor. The Court, in its order, directed that the firm amend its disclosure and declaration to reflect the amounts that it has received to date from any source; and submit a budget for forensic, tax and other services, including avoidance and plan work, anticipated to be needed and performed on behalf of the Debtor. Further, the firm will not perform any forensic accounting work for the Debtor until Lain Faulkner is authorized to perform forensic accounting work for the Debtor by further order of the Court. As reported in the Troubled Company Reporter on April 22, 2013, the Debtor sought Court permission to employ Lain Faulkner, and, in particular, to obtain the services of Steven H. Thomas, CPA and shareholder of the firm, to perform forensic accounting services, analyze preferences and their relation to the bankruptcy case, and provide expert testimony. The firm is expected to: (a) prepare an accounting of the "partnership" affairs between the Debtor and the Riggs Group, including a reconciliation of the results to the Hanke Report; economic analysis and consultation with the Debtor; (b) perform forensic accounting analysis and consultation with the Debtor; (c) assist with the development and evaluation of the Debtor's Plan of Reorganization; (d) prepare accounting reports as requested or required; (e) provide assistance with the Debtor's analysis and objections to various claims; and (f) provide other services as may be necessary or appropriate. Mr. Thomas's hourly rate is $390. The firm's current hourly fee structure are: Clerical and Data Entry $75 - $95 General Accountants $150 - $215 Technology Assistance $225 - $300 CPA Accountants, Forensic & Audit $225 - $340 Shareholders in the Firm $345 - $450 The Debtor believes that Lain Faulkner is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. About Wyldfire Energy Palo Pinto, Texas-based Wyldfire Energy, Inc., filed a bare-bones Chapter 11 petition (Bankr. N.D. Tex. Case No. 12-70239) in Wichita Falls, Texas, on June 20, 2012. Tamara Ford, a 100% stockholder, signed the Chapter 11 petition. Judge Harlin DeWayne Hale oversees the case. The Law Offices of Ronald L. Yandell, Esq., serves as the Debtor's counsel. The Debtor's Plan provides that General Unsecured Creditors will be paid in full in one installment being payable on or within 60 days of the respective Initial Distribution Date. WYLDFIRE ENERGY: Michael McConnell Selected as Chapter 11 Trustee ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Texas last month approved the appointment of Michael McConnell Kelly Hart & Hallman, LLP 201 Main Street, Suite 2500 Fort Worth, TX 76102 as Chapter 11 trustee for Wyldfire Energy, Inc. William T. Neary, the U.S. Trustee for Region 6, has fixed the trustee's bond at $10,000 personal recognizance. The U.S. Trustee has selected Mr. McConnell after consulting with Ronald L. Yandell, counsel for the Debtor; James Hoffman, counsel for Carlton Scott "Bubba" Riggs and Riggs Energy; H. Brandon Jones, counsel for Bobby Riley and Riley Exploration; Ronald Hornberger, for Ty Griesenbeck; William Greendyke, counsel for Riley-Huff Energy Group; Aaron Tobin, counsel for Tamara Ford; Jim Robertson, for himself; and Dan Hanke, for himself. As reported in the Troubled Company Reporter on Oct. 18, 2012, Carlton "Bubba" Riggs and Riggs Energy, Inc., asked the Court to direct the appointment of a trustee. Prepetition, the Riggs Parties filed a lawsuit in Texas state court in connection with partnership affairs with the Debtor and its principals, Tamara Ford and Tim Ford. The court announced its finding that the Riggs Parties were entitled to a cash award of more than $5 million. A final judgment against the Debtor and the Fords, jointly and severally, was imminent after the parties entered into a written Settlement Agreement, after the state court conducted a three-day hearing on entry of judgment on that Agreement, after an arbitrator rendered a decision finding that the Agreement required the Debtor and the Fords to be jointly and personally liable under the judgment, and after the court announced its finding that the Riggs Parties were entitled to a cash award of more than $5 million. At that point, according to the Riggs Parties, the Fords threw Wyldfire into bankruptcy as a litigation tactic, hoping to avoid their joint and personal liability under the Settlement Agreement and the resulting non-appealable findings by the judge and the arbitrator. At this same time, the Fords began transferring assets out of their name in an effort to protect, hide, and conceal them from execution of the imminent non-appealable judgment in favor of the Riggs Parties. According to the Riggs Parties, appointing a Chapter 11 trustee for Wyldfire is the only way to ensure that Wyldfire's bankruptcy will be conducted in the best interest of its creditors, as opposed to the conflicting best interests of Tim Ford and Tamara Ford personally. The Fords are responsible for initiating Wildfire's bankruptcy, and for exposing Wyldfire to additional damages as a result of their withdrawal of consent to the written Settlement Agreement in Frio County litigation, entitling Riggs not only to the cash award exceeding $5 million, and one-half of all partnership assets -- in which the Debtor listed its 50% interest be valued at approximately $33 million, the other 50% of which ownership interest would be owed to the Riggs Parties -- but now as a result of the Fords causing Wyldfire to withdraw its consent to the written Settlement Agreement, Wyldfire's estate is subject to a 40% award of attorney fees pursuant to Tex. Civ. Prac. & Rem. Code Sec. 38.001(8). About Wyldfire Energy Palo Pinto, Texas-based Wyldfire Energy, Inc., filed a bare-bones Chapter 11 petition (Bankr. N.D. Tex. Case No. 12-70239) in Wichita Falls, Texas, on June 20, 2012. Tamara Ford, a 100% stockholder, signed the Chapter 11 petition. Judge Harlin DeWayne Hale oversees the case. The Law Offices of Ronald L. Yandell, Esq., serves as the Debtor's counsel. The Debtor's Plan provides that General Unsecured Creditors will be paid in full in one installment being payable on or within 60 days of the respective Initial Distribution Date. * Ex-AIG Chief Greenberg Moves to Toss Spitzer Suit --------------------------------------------------- David McLaughlin, David Voreacos & Chris Dolmetsch, writing for Bloomberg News, reported that Maurice "Hank" Greenberg, the former chief executive officer of American International Group Inc. (AIG), is set to ask New York's highest court to clear his name and dismiss what remains of an eight-year-old lawsuit over an AIG accounting scandal. According to the report, the argument comes after New York Attorney General Eric Schneiderman said that while he wants to hold Greenberg personally liable, he no longer seeks money damages. He wants to bar Greenberg, 88, from working in the securities industry or serving as an officer or director of a public company. Greenberg has long argued that the lawsuit, originally filed by then-Attorney General Eliot Spitzer, is groundless, the report related. Schneiderman contends that Greenberg and former AIG Chief Financial Officer Howard Smith bear responsibility for a sham transaction with General Reinsurance Corp. in 2000 and 2001 that inflated AIG's loss reserves by $500 million. "We believe it is important to hold these defendants personally accountable for their frauds," Schneiderman's office wrote on April 25 to the New York Court of Appeals in Albany, which is scheduled to hear arguments in the case, the report cited. Greenberg, who served in World War II and in Korea, has squared off against three attorneys general in his fight to defeat the lawsuit, according to the report. Spitzer's pursuit of the case forced Greenberg to step down from AIG in 2005 after he spent four decades building AIG into the world's largest insurer. The case is State of New York v. Greenberg, 401720-2005, New York state Supreme Court (Manhattan). * N.Y. Atty. Gen. Lays Out Complaints v. Wells Fargo, BofA ---------------------------------------------------------- Danielle Douglas, writing for The Washington Post, reported that Bank of America, Wells Fargo and other large banks are dragging their feet in processing homeowners' requests for lower monthly payments under the $25 billion national mortgage settlement, said New York Attorney General Eric Schneiderman in a letter obtained Friday by The Washington Post. According to the report, earlier this month, Schneiderman threatened to sue Wells Fargo and Bank of America for violating the terms of the agreement, which was brokered last year between 49 attorneys general and the nation's five largest mortgage servicers over foreclosure abuses. The Post related that New York's top prosecutor said his office received 339 complaints that the two banks were not complying with the timeline requirements of the agreement. Homeowners said the banks took more than 30 days to respond to their requests to reduce interest rates or loan balances. "We have learned that several other states have identified similar, recurring deficiencies by the participating servicers," Schneiderman said in a letter dated May 23 to the monitor of the settlement, Joseph Smith, the Post further related. The attorney general told Smith that he intends to sue if the monitoring committee failed to bring the banks in line. Schneiderman would not identify the other states or other banks being accused of violating the servicing standards set in the settlement, but the accusations echo those of other state attorneys general, the Post noted. * Mortgage Jobs Sent to India by U.S. Banks ------------------------------------------- Joel Schectman, writing for The Wall Street Journal, reported that as U.S. banks struggle to maintain margins amid growing regulatory demands, some of them have started to outsource part of the onerous work involved in servicing mortgages and processing foreclosures to India's major technology companies. According to the WSJ report, the move is creating a new revenue stream for such Indian outsourcing firms as Tata Consultancy Services Ltd. and Wipro Ltd. at a time when many Western companies have been pulling back on information-technology outsourcing. This year, Indian outsourcing firms will bring in $316 million in mortgage work, double the revenue from such work in 2009, according to estimates from HfS Research, an outsourcing consulting firm. The banks aren't outsourcing all the work, the WSJ report noted. Citibank, for example, says that most of its mortgage servicing is still done in the U.S., though an Indian outsourcing company now supplements some work as needed. But as the government rolls out tougher rules for home loans, banks have added new financial- verification hurdles, and many of them outsource vetting rather than increasing their own staffs. Indian outsourcing firms argue that using their services is also beneficial because it increases the layers of scrutiny, WSJ related. But U.S. regulators have faulted the banks for poor supervision of third-party vendors. Consumer advocates also worry that sending parts of the mortgage-servicing work to India will make it harder to ensure that reviews are done properly. "I think the lack of oversight so far away may be too much for these banks to handle, considering how badly they've handled overseeing their own staff," says Ira Rheingold, executive director of the National Association of Consumer Advocates. In the years after the 2008 global financial crisis, the U.S government criticized every facet of the mortgage business, from how financial institutions decided who got a loan to how borrowers in default were treated, WSJ pointed out. Banks were also faulted for sloppiness, which, the government said, contributed to the wave of foreclosures that sank the American housing market. * SEC Refocuses on Accounting Fraud ----------------------------------- Jean Eaglesham, writing for The Wall Street Journal, reported that U.S. securities regulators are turning back toward Main Street, renewing their focus on accounting fraud and other financial- disclosure failings. According to the WSJ report, those cases were long a staple of the Securities and Exchange Commission's enforcement efforts, leading to more than 25% of civil-enforcement actions filed by the agency in its 2003 to 2005 financial years. The financial crisis shifted attention and money elsewhere. In the year ended last September, accounting fraud and financial-disclosure problems made up just 11% of SEC enforcement actions. But as the volume of crisis-related cases ebbs, top SEC officials are expected to announce soon a broad shuffling of resources in the agency's enforcement division that will include an increased focus on accounting fraud, according to people close to the agency, WSJ related. The decision to hunt for wrongdoing by Main Street, as well as Wall Street, puts America's corporations in the SEC's cross hairs, the report said. The move is led by SEC Chairman Mary Jo White and co-enforcement chiefs George Canellos and Andrew Ceresney, said the people close to the agency, according to the WSJ report. It isn't clear how much money or manpower will be devoted to the effort, though the SEC already is developing a computer program to sift language in financial reports for clues that executives might be misstating results, agency officials say. * Chambers USA 2013 Ranks Dorsey & Whitney Bankruptcy Lawyers ------------------------------------------------------------- International law firm Dorsey & Whitney LLP on May 28 disclosed that 52 of its lawyers and 21 of its practices across nine of its U.S. offices were ranked by Chambers and Partners in its annual survey, Chambers USA: America's Leading Lawyers for Business 2013. In addition to the practices in nine Dorsey offices that were recognized at the state level, the Firm's Native American Law practice was recognized on the national level. The following Dorsey lawyers were recognized by Chambers in its latest guide: Anchorage Robert Bundy - Litigation: General Commercial Jahna Lindemuth - Litigation: General Commercial Michael Mills - Corporate/M&A Corporate/M&A: Bankruptcy Richard Rosston - Corporate/M&A Real Estate Spencer Sneed - Corporate/M&A Corporate/M&A: Bankruptcy; Litigation: General Commercial Denver Whitney Holmes - Corporate/M&A Lee Osman - Intellectual Property Lisa Osman - Intellectual Property Gregory Tamkin - Intellectual Property Tucker Trautman - Litigation: General Commercial Des Moines David Tank - Litigation: General Commercial Fargo Sarah Herman - Labor & Employment; Litigation: General Commercial Minneapolis Peter Carter - Litigation: General Commercial Steve Champlin - Construction Doug Christensen - Labor & Employment Ken Cutler - Corporate/M&A George Eck - Litigation: General Commercial Mark Hamel - Real Estate Joe Hammell - Labor & Employment Tim Hearn - Corporate/M&A Paul Klaas - Litigation: General Commercial Jocelyn Knoll - Construction Matthew Knopf - Corporate/M&A Jay Lindgren - Real Estate: Zoning & Land Use Roger Magnuson - Litigation: General Commercial John Marsalek - Corporate/M&A Robert Olson - Real Estate Melissa Raphan - Labor & Employment Robert Rosenbaum - Corporate/M&A Eric Ruzicka - Construction Steve Wells - Litigation: General Commercial Missoula Jeremy Brown - Corporate/M&A Jack Manning - Corporate/M&A Dan Semmens - Corporate/M&A National Skip Durocher - Native American Law Mary Streitz - Native American Law New York Sandra Edelman - Intellectual Property: Trade Mark & Copyright Bruce Ewing - Intellectual Property: Trade Mark & Copyright Steven Khadavi - Corporate/M&A Salt Lake City Alan Bell - Corporate/M&A Bryon Benevento - Litigation: General Commercial David Day - Corporate/M&A Samuel Gardiner - Corporate/M&A Steve Marsden - Litigation: General Commercial David Marx - Corporate M&A William Prince - Energy & Natural Resources Seattle Chris Barry - Corporate/Commercial Michael Droke - Labor & Employment Kimton Eng - Intellectual Property Robert Mahler - Litigation: White Collar Crime & Government Investigations Lisa Marchese - Litigation: General Commercial Paul Meiklejohn - Intellectual Property In addition to the individual lawyer rankings, the following Dorsey practice groups were recognized as Band 1, the highest possible ranking for a practice group awarded by Chambers: Anchorage Corporate/M&A Litigation: General Commercial Real Estate Minneapolis Corporate/M&A Labor & Employment Litigation: General Commercial Montana Corporate/M&A North Dakota Labor & Employment Salt Lake City Corporate/M&A Chambers surveys and interviews clients and lawyers across the United States to determine which firms and attorneys are considered leaders in their field. Rankings assess key qualities in the legal field, including technical legal ability, professional conduct, client service, commercial astuteness, diligence and commitment. About Dorsey & Whitney LLP Clients have relied on Dorsey since 1912 as a valued business partner. With 19 locations in the United States, Canada, Europe and the Asia-Pacific region, Dorsey provides an integrated, proactive approach to its clients' legal and business needs. Dorsey represents a number of the world's most successful companies from a wide range of industries, including leaders in the financial services, life sciences, technology, agribusiness and energy sectors, as well as major non-profit and government entities. * Chambers USA Ranks Sidley's Bankruptcy/Restructuring Lawyers -------------------------------------------------------------- Sidley Austin LLP on May 28 disclosed that Chambers USA: America's Leading Lawyers for Business has named 199 of its lawyers as leaders in their field in the 2013 guide. Overall Sidley received 232 lawyer rankings, as several lawyers enjoy rankings in multiple categories. Lawyer rankings included three "Star" rankings, 41 number one rankings and six "Up and Coming" rankings in a broad range of practice areas. Additionally, Chambers ranked 84 practice areas in the firm's U.S. offices, with 20 of those practices receiving a number one ranking. The 20 Sidley practice areas ranked as number one are as follows: -- Nationwide (9) - Appellate Law; Capital Markets: Securitization; Climate Change; Environment; Insurance: Transactional & Regulatory; International Trade; Investment Funds: Hedge Funds; Products Liability & Mass Torts; Transportation: Rail (for Railroads) -- District of Columbia (1) - Environment -- Illinois (9) - Banking & Finance; Corporate/M&A & Private Equity; Environment; Insurance: Dispute Resolution: Reinsurance; Insurance: Transactional & Regulatory; Intellectual Property; Litigation: General Commercial; Media & Entertainment: Litigation; Real Estate -- New York (1) - Corporate/M&A: Highly Regarded In addition to the firm's rankings, Sidley was "Recommended for Client Service" in the following Nationwide practice areas: Capital Markets: REITs; Capital Markets: Securitization; Climate Change; Environment; Insurance: Dispute Resolution: Insurer; Insurance: Transactional & Regulatory; Intellectual Property; Privacy & Data Security; Tax: Corporate & Finance; Transportation: Rail (for Railroads); and Wealth Management. Sidley was also "Recommended for Commercial Awareness" in the following Nationwide practice areas: Capital Markets: Derivatives & Structured Products; Capital Markets: REITs; Capital Markets: Securitization; Climate Change; Environment; ERISA Litigation; Insurance: Transactional & Regulatory; International Trade; Investment Funds: Hedge Funds; Investment Funds: Registered Funds; and Life Sciences. Carter G. Phillips (nationwide:Appellate Law), Thomas A. Cole (illinois:Corporate/M&A) and Glenn G. Nash (california:IT & Outsourcing) are the three Sidley lawyers to have received a "Star" ranking, Chambers' designation for its highest level of recognition. Thirty-seven Sidley lawyers achieved 41 individual number one rankings for their work in specific practice areas. Lawyers who received number one rankings in the Nationwide category include: Larry J. Nyhan for Bankruptcy/Restructuring; Renwick D. Martin for Capital Markets: Securitization; Roger R. Martella Jr. for Climate Change; Eugene R. Elrod for Energy: Oil & Gas (Regulatory & Litigation); W. Hardy Callcott for Financial Services Regulation: Broker Dealer (Compliance); Susan A. Merrill and Neal E. Sullivan for Financial Services Regulation: Broker Dealer (Enforcement); Susan A. Stone for Insurance: Dispute Resolution: Reinsurance; Jeff S. Liebmann for Insurance: Transactional & Regulatory; Richard M. Belanger for International Trade: Customs; Andrew W. Shoyer for International Trade: Trade Remedies & Trade Policy; William D. Kerr, David R. Sawyier and Michael J. Schmidtberger for Investment Funds: Hedge Funds; Thomas C. Green for Litigation: Trial Lawyers; Alan Charles Raul for Privacy & Data Security; Sergio A. Pozzerle for Projects: Renewables & Alternative Energy; Herbert F. Janick III for Securities: Regulation: Enforcement; and G. Paul Moates for Transportation: Rail (for Railroads). In Illinois, the following lawyers received number one rankings: John W. Treece for Antitrust; James E. Clark for Banking & Finance; James F. Conlan and Larry J. Nyhan for Bankruptcy/Restructuring; David W. Carpenter for Communications; Frederick C. Lowinger for Corporate/M&A S. Michael (Sy) Peck for Corporate/M&A: Private Equity; Richard W. Astle for Energy & Natural Resources: Transactional; Robert M. Olian for Environment: Litigation; William M. Sneed and Susan A. Stone for Insurance: Dispute Resolution: Reinsurance; Michael P. Goldman and Perry J. Shwachman for Insurance: Transactional & Regulatory; David T. Pritikin for Intellectual Property; Priscilla E. Ryan for Labor & Employment: Employee Benefits & Compensation; Scott R. Lassar for Litigation: White-Collar Crime & Government Investigations; and Richard O'Brien for Media & Entertainment: Litigation. In the District of Columbia, the following lawyers all received number one rankings: David T. Buente Jr. for Environment; Paul E. Kalb M.D. for Healthcare; and Thomas C. Green for Litigation: White-Collar Crime & Government Investigations. Jeff S. Liebmann of the New York office received a number one ranking in the Insurance: Transactional & Regulatory category in New York. Paul R. Walker of the Los Angeles office received a number one ranking in Real Estate in California. The five lawyers who received six "Up and Coming" rankings are: Mark R. Kirsons for Banking & Finance (Illinois); Sharon R. Flanagan for Capital Markets: Debt & Equity (California) and for Corporate/M&A (Northern California); Giselle M. Barth for Capital Markets: Securitization (Nationwide); Kristin Graham Koehler for Litigation: White-Collar Crime & Government Investigations (District of Columbia); and Joseph A. Micallef for Intellectual Property: Litigation (District of Columbia). Rankings in Chambers USA: America's Leading Lawyers for Business are based on confidential in-depth interviews with key in-house counsel and leading private practice lawyers. All editorial comments about individual lawyers as well as the rankings are independent and objective. With more than 1,700 lawyers in 19 offices worldwide, Sidley has built a reputation as a premier legal advisor for global businesses and financial institutions. For the third consecutive year, Sidley received the most first-tier national rankings of any U.S. law firm in the 2013 U.S. News - Best Lawyers "Best Law Firms" survey, making it the only law firm to receive this recognition since the survey's inception. Sidley was also named the U.S. News - Best Lawyers "Law Firm of the Year" in both Commercial Litigation and Securities/Capital Markets Law in the 2013 survey. On Law360's list of Global 20 Firms, Sidley was ranked among the top 10 law firms with the greatest global reach and expertise. * Chambers USA Recognizes Thompson Hine's Bankruptcy Lawyers ------------------------------------------------------------ Thompson Hine LLP has been recognized for the 11th year in a row as a leading law firm in Chambers USA: America's Leading Lawyers for Business, which ranks lawyers based on interviews with both clients and peers according to technical legal ability, professional conduct, customer service, commercial awareness, diligence and commitment. In the 2013 edition, Thompson Hine is named a top firm in 11 practice areas, three of which are ranked nationally - Construction, Transportation: Rail (for Shippers) and Transportation: Road (Carriage/Commercial) - as follows: -- Banking & Finance -- Bankruptcy/Restructuring -- Construction -- Corporate/M&A -- Employee Benefits & Executive Compensation -- Intellectual Property -- Litigation: General Commercial -- Natural Resources & Environment -- Real Estate -- Transportation: Rail (for Shippers) -- Transportation: Road (Carriage/Commercial) Seven of the practice areas received rankings in the first tier. In addition, the following 47 Thompson Hine lawyers are recognized as leading lawyers in their practices: Banking & Finance Eduardo Kim Leslee W. Miraldi Adam R. Nazette Bankruptcy/Restructuring Jeremy M. Campana Robert C. Folland John F. Isbell Alan R. Lepene Louis F. Solimine Curtis L. Tuggle Construction Jeffrey R. Appelbaum Thomas J. Kirkwood Lawrence M. Prosen Patrick J. Sweeney Audra J. Zarlenga Corporate/M&A Thomas A. Aldrich Frank D. Chaiken David J. Willbrand Employee Benefits & Executive Compensation Timothy R. Brown Jack F. Fuchs J. Shane Starkey Karen D. Youngstrom Franchising Thomas J. Collin Intellectual Property Louis K. Ebling Mark P. Levy Beverly Lyman Intellectual Property Litigation John W. Ryan International Trade: Trade Remedies & Trade Policy David S. Christy Jr. Labor & Employment Eric S. Clark Timothy McDonald Litigation: Antitrust Thomas J. Collin Litigation: General Commercial Scott A. King James D. Robenalt Natural Resources & Environment Wray Blattner Terrence M. Fay Heidi B. Goldstein Michael L. Hardy Andrew L. Kolesar Real Estate James B. Aronoff Dianne S. Coscarelli Thomas J. Coyne Robert M. Curry Jared E. Oakes Linda A. Striefsky Transportation: Aviation: Regulatory Charles A. Hunnicutt Transportation: Rail (for Shippers) Karyn A. Booth Sandra L. Brown Nicholas J. DiMichael Jeffrey O. Moreno About Thompson Hine LLP Established in 1911, Thompson Hine -- http://www.ThompsonHine.com -- is a business law firm dedicated to providing superior client service. The firm has been recognized for more than ten consecutive years as one of the top law firms in the country for client service excellence in The BTI Client Service A-Team: Survey of Law Firm Client Service Performance, and for six years has ranked as one of the top 30 law firms in the United States for client service. With offices in Atlanta, Cincinnati, Cleveland, Columbus, Dayton, New York and Washington, D.C., Thompson Hine serves premier businesses worldwide. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- 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/ Dec. 2, 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. ********* 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, 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 ***