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/raid1/www/Hosts/bankrupt/TCR_Public/130827.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, August 27, 2013, Vol. 17, No. 237 Headlines ACTIVECARE INC: Delays Second Quarter Form 10-Q ADIRONDACK MANOR: Case Summary & 3 Unsecured Creditors AEROVISION HOLDINGS: Dismissal Hearing Continued to Sept. 24 AMERICAN AIRLINES: Says Plan Confirmable Even With Antitrust Suit AMERICAN AIRLINES: No 'Plan B' If Merger With US Airways Fails AMERICAN AIRLINES: Customers Oppose Plan Confirmation AMERICAN AIRLINES: Names Initial Directors of Reorganized Company AMERICAN ROADS: Bondholders Mount Opposition to Plan AMERICAN MEDIA: Posts $765,000 Net Income in Fiscal 1st Quarter AMERIGO ENERGY: Delays Form 10-Q for Second Quarter AMINCOR INC: Incurs $1.9 Million Net Loss in Second Quarter APPLIED DNA: Buys Back Series C Warrants From Crede for $10,000 ARMORWORKS ENTERPRISES: Can Employ Gallagher & Kennedy as Counsel ARMORWORKS ENTERPRISES: Can Employ MCA as Financial Advisors ARMORWORKS ENTERPRISES: MAC Packaging Added as Committee Member ARMORWORKS ENTERPRISES: Maricopa Treas. Wants DIP Order Amended AS SEEN ON TV: Incurs $533,500 Net Loss in June 30 Quarter AVIS BUDGET: Moody's Keeps Notes Ratings over Zipcar Canada Pact AXION INTERNATIONAL: Posts $3.1 Million Net Income in 2nd Quarter BEAZER HOMES: NYSE Delists 7.25 Percent Tangible Equity Units BENTLEY PREMIER: Can Use Cash Collateral Thru Sept. 3 BENTLEY PREMIER: Gets Court Nod to Files Schedules by Sept. 3 BENTLEY PREMIER: Wants to Hire Hiersche Hayward as Counsel BENTLEY PREMIER: Pourchot Trust Seeks Dismissal of Chap. 11 Case BERLIN & DENMAR: Forfeiture of Goldstein's Deposit Upheld BIG M: Exclusive Filing Period Extended Until Nov. 4 BIOZONE PHARMACEUTICALS: Incurs $746,000 Net Loss in 2nd Qtr. BOREAL WATER: Delays Form 10-Q for Second Quarter BRUNET-SUAREZ INVESTMENT: Case Summary & Creditors List CAMARILLO PLAZA: Plan to Be Funded by All-Cash Sale of Property CANCER GENETICS: Offering 1.5 Million Common Shares CAPMARK FINANCIAL: Wells Fargo Settles $28MM Swaps Suit CASH STORE: Reports $6.8 Million Net Loss in June 30 Quarter CASPIAN SERVICES: Delays Form 10-Q for Second Quarter CETERA FINANCIAL: S&P Raises Issuer Credit Rating to 'B+' CHINA TELETECH: Delays Form 10-Q for Second Quarter CHRISTIAN BROTHERS: Deal with Abuse Claimants Pave Way for Plan COATES INTERNATIONAL: Incurs $1.2 Million Net Loss in 2nd Qtr. COMSTOCK RESOURCES: Moody's Affirms 'B2' Corp. Family Rating COOPER-BOOTH: Aug. 28 Hearing on Exclusivity Extension COOPER-BOOTH: Wants Lease Decision Period Extended Until Jan. 16 COUDERT BROTHERS: Dechert Can't Avoid Suit Over Paris Takeover DATAJACK INC: Delays Form 10-Q for Second Quarter DELPHI AUTOMOTIVE: Shares On a Roll Following Bankruptcy Exit DETROIT, MI: Bankruptcy Court Rebukes Mediator Ethics Debate DEWEY STRIP: Gets Court Nod to Hire Neal Wolf as Lead Counsel DEWEY STRIP: Can Tap Womble Carlyle as Delaware Co-counsel EASTERN HILLS: Richard W. Ward Approved as Counsel EASTMAN KODAK: S&P Assigns Prelim. 'B-' CCR; Outlook Stable ECO BUILDING: Amended Q2 Form 10-Q Shows $2.2 Million Net Loss EDENOR SA: Buenos Aires Stock Exchange Revokes Suspension EMPIRE RESORTS: Option to Lease EPT Property Extended to Aug. 23 ENERGYSOLUTIONS INC: Incurs $57.2 Million Net Loss in 2nd Quarter ERF WIRELESS: Delays Form 10-Q for Second Quarter ESP RESOURCES: Delays Form 10-Q for Second Quarter EPAZZ INC: Delays Form 10-Q for Second Quarter FIELD FAMILY: Wants Exclusivity Periods Extended Until February FINJAN HOLDINGS: Incurs $1.2 Million Net Loss in 2nd Quarter FIRST SECURITY: Incurs $4 Million Net Loss in Second Quarter FLORIDA GAMING: Section 341(a) Meeting Set on October 4 FOURTH QUARTER PROPERTIES: Case Dismissal Hearing Continued FRIENDFINDER NETWORKS: Incurs $10.3 Million Net Los in Q2 GENERAL STEEL: Delays Form 10-Q for Second Quarter GEOMET INC: Posts $42.4 Million Net Income in Second Quarter GLOBALSTAR INC: Incurs $126.3 Million Net Loss in 2nd Quarter GORDIAN MEDICAL: Has Final OK to Incur DIP Financing of $4-Mil. GORDIAN MEDICAL: Chapter 11 Plan Says All Claims Unimpaired GRAYMARK HEALTHCARE: Conference Call Held to Discuss Q2 Results GSW HOLDINGS: Plan Effective Date Occurred on July 23 HAAS ENVIRONMENTAL: U.S. Trustee Names Members to Creditors' Panel HAAS ENVIRONMENTAL: Schedules Filing Deadline Extended to Sept. 3 HAAS ENVIRONMENTAL: PUEFC Balks at Bid to Use Cash Collateral HALLWOOD GROUP: Incurs $357,000 Net Loss in Second Quarter HARRISBURG, PA: Receiver Files Plan to Address $360MM Debt HCSB FINANCIAL: Delays Q2 Form 10-Q to Complete Audit HERCULES OFFSHORE: Now Owns 100% Equity Stake of Discovery HOLLY CREST: Voluntary Chapter 11 Case Summary HORIYOSHI WORLDWIDE: Delays Form 10-Q for Second Quarter HORNE INTERNATIONAL: Delays Form 10-Q for Second Quarter HUBER RENTAL: Case Summary & 8 Unsecured Creditors HUSTAD INVESTMENT: Wants Case Conversion Motion Denied IMH FINANCIAL: Delays Form 10-Q for Second Quarter INDEPENDENCE TAX IV: Incurs $185,000 Net Loss in June 30 Qtr. INFUSYSTEM HOLDINGS: Amends 2007 Stock Incentive Plan INTERLEUKIN GENETICS: Incurs $1.7 Million Net Loss in Q2 INTERSTATE PROPERTIES: Court Cites Pre-Conditions to Dismissal IPC INTERNATIONAL: Seeks to Sell Assets to UPS for $21.3-Mil. IPC INTERNATIONAL: Has Interim Authority to Tap $8MM in DIP Loans IPC INTERNATIONAL: Can Use Cash Collateral Until January 2014 IZEA INC: Amends First Quarter Form 10-Q J.C. PENNEY: Pershing Square Held 17.7% Equity Stake at Aug. 12 KIDSPEACE CORP: Has Court Authority to Employ Grant Thornton KIDSPEACE CORP: Hearing on Bid to Terminate Ombudsman on Sept. 3 KINGSBURY CORP: Plan Outline Hearing Continued to Sept. 25 LDK SOLAR: To Release Second Quarter Results Today LEE'S FORD: Seeks $500,000 in DIP Loans from Community Trust Bank LEE'S FORD: Chapter 11 Plan Offers Payment within 5 Years LEHMAN BROTHERS: Sues German Entities to Recover $134MM Transfer LIBERATOR INC: Extends Maturity of Convertible Note to 2014 LIME ENERGY: Delays Form 10-Q for Second Quarter LMI AEROSPACE: Moody's Retains 'B1' Corp. Family Rating LPATH INC: Offering $40 Million Class A Shares MACROSOLVE INC: Hood & Associates Quits Due to Limited Staffing MARINA BIOTECH: Assigns UNA Technology to Arcturus METEX MANUFACTURING: Needs More Time for Another Asbestos Plan MF GLOBAL: Escapes Warn Act Liability Completely MI PUEBLO: Hires Bustamante as Counsel in Turlock Suit MI PUEBLO: Taps Cavanagh as Counsel in Immigration, Custom Issues MI PUEBLO: Littler Mendelson to Serve as Labor Counsel MI PUEBLO: Hires Perkins Coie as IP Counsel MMODAL INC: S&P Revises Outlook to Negative & Affirms 'B' CCR MONTREAL MAINE: Allowed to Operate until Oct. 1 MPG OFFICE: Merger Agreement "Outside Date" Changed to Sept. 16 N-VIRO INTERNATIONAL: Delays Form 10-Q for Second Quarter NNN PARKWAY: Sec. 341 Creditors' Meeting Set for Sept. 20 NNN PARKWAY: Court Extends Plan Filing Deadline to Aug. 30 NORTHCORE TECHNOLOGIES: Had C$303,000 Comprehensive Loss in Q2 NTELOS HOLDINGS: S&P Lowers Corporate Credit Rating to 'B' OCEAN 4660: Hearing on Continued Use of Cash Collateral Today OMNICARE INC: Moody's Rates New $424-Mil. Senior Notes 'Ba3' OMNICOMM SYSTEMS: Stockholders Elect Three Directors ORCHARD SUPPLY: Term Lenders Settle With Committee on Plan ORCHARD SUPPLY: Great American Liquidating Outlets in Calif. ORMET CORP: Borrowing $4 Million More Until Sale Closes PATRIOT COAL: UMWA Statement on 8th Cir. BAP Decision PEARL AT WEST: Voluntary Chapter 11 Case Summary PERSONAL COMMUNICATIONS: Section 341(a) Meeting Set on Sept. 20 PETRON ENERGY: Bob Currier Named Chief Financial Officer PETTERS COMPANY: GE Unit May Have Aided Ponzi Scheme, Judge Finds PLC SYSTEMS: Posts $7.9 Million Net Income in Second Quarter PLUG POWER: Incurs $9.3 Million Net Loss in Second Quarter PROVISION HOLDING: Inks Advertising Agreement with Rite Aid PRESSURE BIOSCIENCES: Incurs $1.2 Million Net Loss in Q2 PURADYN FILTER: Incurs $474,000 Net Loss in Second Quarter QUALITY DISTRIBUTION: G. Enzor Succeeds T. White as New Chairman RADIOSHACK CORP: William Nebes No Longer Serves as SVP-Mexico REEVES DEVELOPMENT: Plan Outline Hearing Continued to Sept. 19 REFLECT SCIENTIFIC: Incurs $87,600 Net Loss in Second Quarter REGIONAL EMPLOYERS: Sec. 341(a) Meeting Continued to Sept. 24 REGIONAL EMPLOYERS: Hearing on UST's Dismissal Bid on Sept. 3 RESIDENTIAL CAPITAL: To Present Plan for Confirmation on Nov. 19 REVSTONE INDUSTRIES: Has Until Oct. 31 to File Chapter 11 Plan RICEBRAN TECHNOLOGIES: Incurs $1.9 Million Net Loss in Q2 SAEXPLORATION HOLDINGS: Gets Nasdaq Listing Non-Compliance Notice SALON MEDIA: Incurs $688,000 Net Loss in June 30 Quarter SAN BERNARDINO, CA: Judge's Ruling Looms on Bankruptcy, Pensions SANTEON GROUP: Incurs $4,700 Net Loss in Second Quarter SANUWAVE HEALTH: Incurs $818,000 Net Loss in Second Quarter SCC KYLE: Court Denies Whitney Bank's Bid to Stay Plan Approval SERVICEMASTER CO: S&P Lowers CCR to 'B-'; Outlook Stable SIONIX CORP: To Restate March 31 Quarter Form 10-Q SIONIX CORP: Delays Form 10-Q for Second Quarter SOUTH LAKES DAIRY: Plan Approval Hearing Continued to Sept. 12 SOUTHERN MONTANA: Noteholders' $46MM Claim Waived in Amended Plan SOUTHERN MONTANA: Can Access Cash Collateral Thru Year End SOUTHERN MONTANA: Court OKs MRV's 2nd Round of Expanded Services SPENDSMART PAYMENTS: Delays Form 10-Q for Second Quarter STRAFFORD COUNTY, NH: Moody's Raises GO Bond Ratings to 'Ba1' STUMP FUNERAL: Case Summary & 6 Unsecured Creditors SUNVALLEY SOLAR: Incurs $157,000 Net Loss in Second Quarter SYNAGRO TECHNOLOGIES: Exits Chapter 11 Under Control of EQT TC GLOBAL: Intends to File Liquidation Plan TELECONNECT INC: Incurs $906,000 Net Loss in June 30 Quarter THERMON HOLDING: Moody's Withdraws B1 Ratings TN-K ENERGY: Incurs $50,000 Net Loss in Second Quarter TRANS-LUX CORP: Incurs $723,000 Net Loss in Second Quarter TRIUS THERAPEUTICS: Norman Shifrin Files Lawsuit Over Merger Plan UBS WILLOW: Two Law Firms File FINRA Arbitration Claim UNILAVA CORP: Delays Form 10-Q for Second Quarter UNITEK GLOBAL: Delays Second Quarter Form 10-Q for Restatement US WIRELESS: Unveils Forward Guidance & Moving Forward Plans USEC INC: Global X Held 23.1% Equity Stake at July 31 USMART MOBILE: Incurs $648,000 Net Loss in Second Quarter VERITY CORP: Incurs $477,500 Net Loss in June 30 Quarter VICTORY ENERGY: Delays Q2 Form 10-Q Due to Restatements VISCOUNT SYSTEMS: Incurs C$707,000 Net Loss in Second Quarter VISION INDUSTRIES: Delays Form 10-Q for Second Quarter VISUALANT INC: Incurs $2.4 Million Net Loss in June 30 Quarter VISUALANT INC: Authorized Common Shares Hiked to 500 Million WATER'S EDGE: Case Summary & 18 Largest Unsecured Creditors WESTERN EXPRESS: Default Risk Prompts Moody's to Cut CFR to Caa3 XTREME GREEN: Case Summary & 20 Largest Unsecured Creditors YARWAY CORPORATION: Plan Filing Deadline Extended to Dec. 18 YESHIVA CHOFETZ: Section 341(a) Meeting Scheduled for Sept. 18 * Courts Split on Wage Garnishment as a Preference * Two Bank Failures on Aug. 23 Bring 2013 Total to 20 * Bankers Brace for Fed Wind-Down * Trump Institute Accused of Fraud by N.Y. Attorney General * FDIC Waging Legal Battle Against Hundreds of Former Bank Leaders * OTC Derivatives Rules' Benefits Outweigh Costs, Basel Group Says * Moody's Notes Lukewarm Performance of Not-for-Profit Hospitals * Moody's Notes Negative Effect of Insurers' Reliance on Captives * Moody's Says Higher Rates Fuel Q2 Earnings for P&C Insurers * Moody's Sees Better Macroeconomic Factors for US Life Insurers * Moody's Canadian Wireless Market Entry Difficult for Newcomers * California Personal Bankruptcy Filings Down 26% in First Half * Mortgage Delinquency Rate Down 31% in July, LPS Report Shows * Peter Schaeffer Joins GlassRatner's New York Office as Principal * Large Companies With Insolvent Balance Sheets ********* ACTIVECARE INC: Delays Second Quarter Form 10-Q ----------------------------------------------- ActiveCare, Inc.'s quarterly report on Form 10-Q for the quarter ended June 30, 2013, was not filed within the prescribed time period because the management requires additional time to compile and verify the data required to be included in the report. The report will be filed within five days of the date the original report was due. The Company expects to report an approximate $2,000,000 to $4,000,000 increase in revenues when comparing the three months ended June 30, 2013, to the corresponding period in 2012. About ActiveCare South West Valley City, Utah-based ActiveCare, Inc., is organized into three business segments based primarily on the nature of the Company's products. The Stains and Reagents segment is engaged in the business of manufacturing and marketing medical diagnostic stains, solutions and related equipment to hospitals and medical testing labs. The CareServices segment is engaged in the business of developing, distributing and marketing mobile health monitoring and concierge services to distributors and customers. The Chronic Illness Monitoring segment is primarily engaged in the monitoring of diabetic patients on a real time basis. The Company's business plan is to develop and market products for monitoring the health of and providing assistance to mobile and homebound seniors and the chronically ill, including those who may require a personal assistant to check on them during the day to ensure their safety and well being. ActiveCare incurred a net loss of $12.36 million for the year ended Sept. 30, 2012, compared with a net loss of $7.89 million during the prior year. The Company's balance sheet at March 31, 2013, showed $10.95 million in total assets, $17.78 million in total liabilities and a $6.82 million total stockholders' deficit. Hansen, Barnett & Maxwell, P.C., in Salt Lake City, Utah, issued a "going concern" qualification on the consolidated financial statements for the year ended Sept. 30, 2012, citing recurring operating losses and an accumulated deficit which conditions raise substantial doubt about the Company's ability to continue as a going concern. ADIRONDACK MANOR: Case Summary & 3 Unsecured Creditors ------------------------------------------------------ Debtor: Adirondack Manor HFA 4 Chelsea Place, Suite 101 Clifton Park, NY 12065 Bankruptcy Case No.: 13-12111 Chapter 11 Petition Date: August 22, 2013 Court: U.S. Bankruptcy Court Northern District of New York (Albany) Judge: Robert E. Littlefield, Jr. Debtor's Counsel: Donald W. Biggs, Esq. O'CONNELL & ARONOWITZ, P.C. 206 West Bay Plaza Plattsburgh, NY 12901 Tel: (518) 562-0600 E-mail: dwb@plattsburghlaw.com Scheduled Assets: $1,502,267 Scheduled Liabilities: $6,700,236 A copy of the Company's list of its largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/nynb13-12111.pdf The petition was signed by James E. Kane, Jr., partner. AEROVISION HOLDINGS: Dismissal Hearing Continued to Sept. 24 ------------------------------------------------------------ The Bankruptcy Court approved an agreed order continuing until Sept. 24, 2013, the hearing to consider the motion to dismiss the Chapter 11 case of Aerovision Holdings 1 Corp. As reported in the Troubled Company Reporter on Aug. 16, 2013, i3 Aircraft Holdings One, LLC, and Integration Innovation, Inc. -- i3 Parties -- have filed a motion to dismiss the Chapter 11 case of Aerovision or, in the alternative, for relief from the automatic stay. The i3 Parties argue that the Debtor's purpose in filing this Chapter 11 bankruptcy was to seek a friendlier forum to derail ongoing state court litigation. The i3 Parties argue that the petition was filed in bad faith and as a mechanism to forum shop. The Debtor tells the bankruptcy court that it is not abusing the judicial process or the purposes of the reorganization process. The Debtor says that a legitimate and complex dispute exists between the Debtor and its various creditors and other interested parties. In addition, the Debtor has not filed to delay or frustrate the legitimate efforts of its "secured" creditors. The Debtor says it does not have any secured creditors. The purpose of this bankruptcy filing was to provide the Debtor with an opportunity to reorganize its affairs in an efficient and expeditious manner. To that end, the Debtor has filed a motion for mediation with mediator Robert Furr. The Debtor adds that a bona fide dispute exists between the Debtor and its various unsecured creditors concerning the ownership of the Aircraft and the rights and parties to the contract with the Saudi Arabian government. The Debtor said its principal undertook significant effort and expense in procuring the Debtor's aircraft and the Saudi contract. The i3 Parties, according to the Debtor, have used illegitimate means to attempt to obtain possession and ownership of the aircraft. A hearing in state court occurred with only one side presenting their case due to a lack of proper notice to the Debtor that evidence would be presented at that hearing. The i3 Parties state that the Debtor could not be "financially distressed" because on the statistical information section of the petition, the Debtor lists assets of between $10 million and $50 million and liabilities between $1 million and $10 million. According to the Debtor, its schedules indicate assets of $19,250,000, which already includes the aircraft at issue. If the aircraft are deemed to not be owned by the Debtor, the Debtor's assets will be significantly less than expected since the aircraft are the Debtor's significant assets. Many of the Debtor's liabilities are also unknown because the Debtor is unsure as to its liability, if any, to the various parties involved in complex transactions. The Debtor concedes that it filed the Chapter 11 bankruptcy following Judge Maltz's June 19, 2013 state court ruling, but the bankruptcy filing does not give rise to forum shopping. The question of the ownership of the aircraft is capable of being addressed in and expeditious and cost-efficient manner through this bankruptcy. About Aerovision Holdings 1 Corp. Aerovision Holdings 1 Corp. filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 13-24624) on June 21, 2013, in its home-town in West Palm Beach, Florida. Mark Daniels signed the petition as president. The Debtor estimated assets in excess of $10 million and liabilities of $1 million to $10 million. Craig I. Kelley, Esq., at Kelley & Fulton, PL, serves as the Debtor's counsel. AMERICAN AIRLINES: Says Plan Confirmable Even With Antitrust Suit ----------------------------------------------------------------- AMR Corp. and its debtor affiliates defended their proposed plan to get out of Chapter 11 protection, saying it is confirmable even with the antitrust lawsuit filed by the U.S. Department of Justice to block its $11 billion merger with US Airways Group Inc. In a 20-page document filed with the U.S. Bankruptcy Court for the Southern District of New York, AMR argued the suit "does not alter the fact that the plan satisfies the requirements of Section 1129(a) of the Bankruptcy Code." Stephen Karotkin, Esq., at Weil Gotshal & Manges LLP, in New York, said the antitrust suit "potentially implicates" only two provisions and won't prevent confirmation of the plan. The AMR lawyer was referring to "the best interests" test set forth in Section 1129(a)(7), and the feasibility requirement of Section 1129(a)(11). Section 1129(a)(7) requires a plan proponent to establish that each creditor will receive at least as much under the proposed plan as it would receive if the company's assets were liquidated. The other provision provides that a plan may be approved only if it is not likely to be followed by a liquidation or further financial reorganization of the company. According to Mr. Karotkin, AMR's liquidation analysis reflects recoveries for unsecured creditors in a Chapter 7 liquidation scenario ranging from 0% to 1.55% on their claims, and no recovery for existing AMR stockholders. Recoveries by creditors and shareholders under the proposed plan "will exceed such liquidation amounts by orders of magnitude" whether AMR prevails in the antitrust suit or the lawsuit is settled, he said. Mr. Karotkin also said the delay attendant to the antitrust suit does not undermine the plan's feasibility. According to the lawyer, the projected capital structure of the new company has been designed to limit funded debt to levels that provide the new company with "more than adequate flexibility" to address any volatility in the airline business. Mr. Karotkin also said that under the proposed plan, virtually all of the pre-bankruptcy unsecured debt of AMR and its affiliated debtors is being satisfied with equity in the new company to eliminate those obligations as liabilities of the new company. Labor unions, creditors and a group of indenture trustees led by The Bank of New York Mellon Trust Company N.A. also expressed support for approval of the plan prior to the resolution of the antitrust suit. "A delay in entering the confirmation order would invite further pre-confirmation proceedings in this court to promote the parochial interests of particular constituencies," AMR's official committee of unsecured creditors said in a court filing. The Association of Professional Flight Attendants, which represents more than 16,000 flight attendants at American Airlines, said the resolution of the antitrust suit is "immaterial" to the issue of whether the plan satisfies the requirements for confirmation. The Transport Workers Union of America said neither the filing of the antitrust suit nor the outcome of that case is "relevant to whether the plan is confirmable." The union believes that the merger would increase competition with other large carriers, protect jobs, and offer passengers more options and better services. Meanwhile, the Justice Department said in a court filing it takes no position as to whether AMR's plan should be confirmed now, notwithstanding the pendency of the antitrust suit. The Official Committee of Unsecured Creditors is represented by: Jay Goffman, Esq. SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP Four Times Square New York, NY 10036 Tel: (212) 735-3000 Email: jay.goffman@skadden.com - and - John Wm. Butler, Jr., Esq. Albert Hogan, III, Esq. John Lyons, Esq. Felicia Gerber Perlman, Esq. 155 North Wacker Drive Chicago, IL 60606 Tel: (312) 407-0700 Email: jack.butler@skadden.com al.hogan@skadden.com john.lyons@skadden.com felicia.perlman@skadden.com The ad hoc committee of AMR creditors is represented by: Gerard Uzzi, Esq. Atara Miller, Esq. Eric Stodola, Esq. MILBANK, TWEED, HADLEY & MCCLOY LLP 1 Chase Manhattan Plaza New York, NY 10005 Tel: (212) 530-5000 Fax: (212) 822-567 Email: guzzi@milbank.com estodola@milbank.com The indenture trustees are represented by: Amy Caton, Esq. KRAMER LEVIN NAFTALIS & FRANKEL LLP 1177 Avenue of the Americas New York, NY 10036 Tel: (212) 715-9100 Fax: (212) 715-8000 - and - Edward Zujkowski, Esq. Thomas Pitta, Esq. EMMET, MARVIN & MARTIN LLP 120 Broadway 32nd Floor New York, NY 10271 Tel: (212) 238-3000 Fax: (212) 238-3100 - and - Seth Lieberman, Esq. Patrick Sibley, Esq. PRYOR CASHMAN LLP 7 Times Square New York, NY 10036-6569 Tel: (212) 421-4100 Fax: (212) 326-0806 APFA is represented by: Robert Clayman, Esq. N. Skelly Harper, Esq. GUERRIERI CLAYMAN BARTOS & PARCELLI P.C. 1900 M Street, NW, Suite 700 Washington, DC 20036 Tel: (202) 624-7400 Fax: (202) 624-7420 Email: rclayman@geclaw.com sharper@geclaw.com TWUA is represented by: Sharon Levine, Esq. Paul Kizel, Esq. S. Jason Teele, Esq. Tania Ingman, Esq. LOWENSTEIN SANDLER LLP 1251 Avenue of the Americas New York, NY 10020 - and - 65 Livingston Avenue Roseland, New Jersey 07068 Tel: (973) 597-2500 Fax: (973) 597-2400 Email: slevine@lowenstein.com pkizel@lowenstein.com steele@lowenstein.com tingman@lowenstein.com The Justice Department is represented by: Preet Bharara United States Attorney Emily E. Daughtry David S. Jones Assistant United States Attorneys 86 Chambers Street, 3rd Floor New York, New York 10007 Tel: (212) 637-2777/2739 Fax: (212) 637-2702 Email: Emily.Daughtry@usdoj.gov David.Jones6@usdoj.gov - and - William J. Baer Assistant Attorney General for Antitrust William Stallings Chief, Transportation, Energy & Agriculture Section Antitrust Division U.S. Department of Justice 450 Fifth Street, N.W., Suite 8000 Washington, D.C. 20530 Tel: (202) 514-9323 Fax: (202) 307-2784 Email: William.Stallings@usdoj.gov DOJ Suit Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the U.S. Justice Department isn't telling a bankruptcy judge whether he should or shouldn't approve the AMR Corp. reorganization plan, despite the government's antitrust lawsuit designed to bar a merger between American Airlines Inc. and US Airways Group Inc. The report relates that at the confirmation hearing for approval of AMR's plan on Aug. 15, U.S. Bankruptcy Judge Sean Lane told interested parties to submit briefs by Aug. 23 on the question of whether he should go ahead and approve the plan, even though it can't be implemented unless the suit begun by the government on Aug. 13 is defeated or settled. The Justice Department filed a terse statement on Aug. 23 without taking a position on whether the plan should be confirmed. The government said it "can take a significant amount of time to litigate" this type of antitrust case. AMR filed a brief urging Judge Lane to approve the plan. The airline said the government suit is "effectively the only impediment" to implementation. At the Aug. 15 hearing, Judge Lane took all the evidence and arguments he needs to approve the plan, according to AMR. Mr. Rochelle notes that in technical terms, the issue of feasibility is implicated by the government suit. To satisfy the feasibility requirement for plan confirmation, AMR must show it can implement the plan and operate without further reorganization. AMR said the feasibility test doesn't gauge "the likelihood of a condition to the actual effectiveness and implementation of the plan occurring." If the government wins, AMR said it's a simple matter of revoking confirmation and nullifying the plan. According to Mr. Rochelle, even if no one submits papers opposing confirmation, the law requires Judge Lane to make an independent determination of whether confirmation requirements have been met. He might view confirming the plan at this time as an exercise in futility because the ability to merge depends on an assumption that the government loses. Even if AMR and US Airways were to waive conditions in their merger agreement requiring no government objection, the government likely could obtain a temporary injunction should the airlines threaten to implement the merger. If merger parties go ahead despite government opposition, "courts almost always grant a temporary restraining order to preserve the status quo pending a preliminary injunction hearing," according to a treatise on antitrust law published by the Practicing Law Institute. Judge Lane, Mr. Rochelle states, could take a middle ground between approving the plan and not. In AMR's situation, plan approval is a two-step process. Judge Lane likely will first write an opinion explaining why he is sustaining or overruling each of the remaining objections, such as the question of whether bankruptcy law allows the merged airlines to pay $20 million in severance to outgoing AMR Chief Executive Officer Tom Horton. The opinion published, a judge ordinarily would then direct the company to submit a confirmation order formally approving the plan and making whatever modifications the judge required in the opinion. Consequently, Judge Lane could publish an opinion explaining that he will sign a confirmation order once the antitrust suit is resolved. That way, creditors and customers would know the plan will be formally approved once the government suit is determined. The district judge handling the antitrust suit scheduled a conference on Aug. 30 to settle on a trial schedule. AMR wants the trial to begin Nov. 12, while the government seeks to hold off until Feb. 10. AMR's is an atypical bankruptcy where the company is solvent. The antitrust suit nonetheless punished AMR's stock. From $5.81 a share just before the suit, the stock plunged to $2.57 after three days' trading. It closed Friday at $3.14, up 7 cents in over-the- counter trading. The stock was at 40 cents in October, rising to $1.30 before the merger was announced in February. The stock posted a post-bankruptcy closing high of $6.85 on May 16. The antitrust suit is U.S. v. US Airways Group Inc., 13-cv-1236, U.S. District Court, District of Columbia. 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) AMERICAN AIRLINES: No 'Plan B' If Merger With US Airways Fails -------------------------------------------------------------- American Airlines Inc.'s general counsel said the carrier has no "contingency plan" if the $11 billion merger with US Airways Group Inc. fails, according to a report by Mark Curriden of the Dallas Morning News. "We are focusing all of our efforts and energies on winning this lawsuit. There's no Plan B," Gary Kennedy said, referring to the antitrust lawsuit filed by the U.S. Department of Justice, Texas Attorney General Greg Abbott and five other states to block the merger. Mr. Kennedy said American Airlines will vigorously fight the antitrust lawsuit. "Our bankruptcy exit plan has as its centerpiece this merger," he said. "If the merger, hypothetically, doesn't go forward, then we have to go back to the bankruptcy court with a new plan," the news agency quoted him as saying. Mr. Kennedy also said that a settlement with Justice Department is "highly unlikely" but American Airlines is open to negotiating a settlement. AMR Corp., the parent company of American Airlines, and US Airways said that they have filed court papers asking the U.S. District Court for the District of Columbia to set the trial of the complaint for Nov. 12. The airlines noted in the court filing that the Justice Department is seeking a trial date of Feb. 10, at the earliest. They stressed that the merger pact has a termination clause that gives either side the right to terminate the deal on Dec. 13 if the necessary regulatory hurdles haven't yet been cleared, according to a report by Susan Carey of The Wall Street Journal. The airlines said the deadline adds to the "uncertainty" for the airlines' employees and customers if the government's proposal for a later trial date is accepted. "We are eager to show that the DOJ's action would deny millions of customers access to a more competitive airline that will offer customers what they want, delivering significant benefits to consumers, communities and employees," Doug Parker, US Airways Chairman and CEO, said in an Aug. 22 statement. Officials in Three States Fight Suit Kevin Gray and Karen Jacobs, writing for Reuters, reported that officials in Florida, Texas and North Carolina, which are home to large hubs for the two airlines, have asked the Justice Department and supporting states to reconsider the lawsuit. Among the local political officials is Miami-Dade mayor Carlos Gimenez who called on U.S. Attorney General Eric Holder to drop the lawsuit. "American Airlines is a vitally important part of our work force," Reuters quoted Mr. Gimenez as saying. "It's vitally important that American be allowed to come out of bankruptcy and expand their footprint." The airline is a large private employer in Miami-Dade County and operates around 70% of the flights at the Miami airport. Other groups supporting the merger include the top Chamber of Commerce executives in Wilmington, N.C., and in Dallas and Fort Worth, Texas, Reuters reported. Connie Majure-Rhett, president and chief executive of the Chamber of Commerce in Wilmington, N.C., expressed hope the Wilmington airport might regain its direct flight to Chicago, one of its most traveled-to destinations for business travelers, in the merger of the two airlines. In Texas, the heads of the Chambers of Commerce in Dallas and Fort Worth, where the merged company would be based, sent a letter to that state's attorney general asking him to withdraw his support for the lawsuit, according to the report. "By any stretch of the imagination, having what the press refers to as the 'World's Largest Airline' based in Texas, makes our state more competitive," Dallas Regional Chamber President James Oberwetter and Fort Worth Chamber President Bill Thornton wrote. Pilots Criticize Abbott's Part in Suit Sheryl Jean, writing for The Dallas Morning News, reported that the union representing American Airlines' pilots criticized Mr. Abbott for joining the lawsuit. "For the sake of American Airlines, its many Texas-based workers and the economic well-being of this great state, we hope you'll reconsider your position," the Allied Pilots Association pleaded in an ad in a Dallas Morning News edition. The pilots' union noted that the airline is the largest employer in North Texas, "directly employing tens of thousands of hardworking, middle-class Texans and indirectly supporting many more jobs and businesses." The union said the failure to merge will leave the airline weaker and threaten even more of the Texas routes that the state's attorney general had hoped to preserve. The Justice Department filed the antitrust lawsuit earlier this month to block the merger for fear it would curb competition in over 1,000 city pairs served by the two carriers, which include Charlotte, N.C.-Dallas; Charlotte-Durango, Colo.; Dallas- Philadelphia; and Kahului, Hawaii-Tampa, Fla. The agency said the combination would create four out-and-out monopolies, albeit on secondary routes, and would reduce competition on more than 1,000 routes. 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) AMERICAN AIRLINES: Customers Oppose Plan Confirmation ----------------------------------------------------- Customers of American Airlines Inc. asked Judge Sean Lane to deny confirmation of the plan proposed by the carrier to get out of bankruptcy protection. The group said the restructuring plan is not feasible in light of the antitrust lawsuits filed by the group and the U.S. Department of Justice to block the carrier's $11 billion merger with US Airways Group Inc. According to the group, failure of the merger, which is the core of the restructuring plan, would render the plan unfeasible. It also noted that the plan does not provide for an alternative should the merger fall through on antitrust grounds. The group filed the lawsuit for fear the merger would reduce competition, and would lead to fewer flights, increase in prices and fares, elimination of jobs and lower quality of service. The group is represented by: David J. Cook, Esq. Cook Collection Attorneys PLC 165 Fell Street San Francisco, CA 94102 Tel: (415) 989-4730 Fax: (415) 989-0491 Email: Cook@squeezebloodfromtumip.com - and - Joseph M. Alioto, Esq. Theresa D. Moore, Esq. Jamie L. Miller, Esq. ALIOTO LAW FIRM One Sansomc Street, 35th Floor San Francisco, CA 94104 Tel: (415) 434-8900 Fax: (415) 434-9200 Email: josephalioto@mac.com - and - Gil D. Messina, Esq. MESSINA LAW FIRM P.C. 961 Holmdel Road Holmdel, NJ 07733 Tel: (742) 332-9300 Fax: (742) 332-9301 Email: gmessina@messinalawfinn.com Tmay@messinalawfirm.com - and - Robert Ross Fogg, Esq. LAW OFFICE OF ROBERT ROSS FOGG, ESQ. LLM 69 Delaware Avenue, Suite 600 Buffalo, New York 14202 Tel: (716) 853-3644 - and - Haslet Boone, Esq. LAW OFFICES OF JOHN H. BOONE 4319 Sequoia Drive Oakley, CA 94561 Tel: (415) 434-8900 Fax: (415) 434-9200 Email: deacon38@g}uail.com - and - Derek G. Howard, Esq. MINAMI TAMAKI LLP 360 Post Street, 8th Floor San Francisco, CA 94109 Tel: (415) 788-9000 Fax: (415) 398-3887 Email: Dhoward@minamitamaki.com 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) AMERICAN AIRLINES: Names Initial Directors of Reorganized Company ----------------------------------------------------------------- AMR Corp. filed a fourth addendum to the Plan of Reorganization disclosing that Thomas Horton, W. Douglas Parker, and Stephen Johnson will serve as the initial directors of these reorganized companies, each of which will be a direct or indirect subsidiary of the merged company: * Admirals Club, Inc. * American Airlines Realty (NYC) Holdings, Inc. * American Airlines, Inc. * American Eagle Airlines, Inc. * Americas Ground Services, Inc. * AMR Eagle Holding Corporation * Business Express Airlines, Inc. * Eagle Aviation Services, Inc. * Executive Airlines, Inc. * Executive Ground Services, Inc. * PMA Investment Subsidiary, Inc. * Reno Air, Inc. * SC Investment, Inc. AMR also disclosed that AA Real Estate Holding GP LLC, American Airlines IP Licensing Holding LLC, American Airlines Marketing Services LLC, American Airlines Vacations LLC, and American Aviation Supply LLC will be managed by their sole member, which in each case will be American Airlines, Inc. AA Real Estate Holding GP LLC will continue to be the sole general partner of AA Real Estate Holding L.P., AMR further said. 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) AMERICAN ROADS: Bondholders Mount Opposition to Plan ---------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that holders of American Roads LLC secured bonds aren't going down without a fight. The report relates that the highway operator that owns the mile- long Detroit Windsor Tunnel began a prepackaged Chapter 11 reorganization on July 25 in New York proposing to extinguish $334 million in bonds without giving anything to the holders. The plan would give sole ownership to Syncora Guarantee Inc. in exchange for debt. Syncora became a creditor by guaranteeing $496 million in swap liability. The report discloses that with Syncora being the only creditor to vote on the plan, Detroit-based American Roads scheduled an Aug. 28 confirmation hearing for approval of the plan. Although the U.S. Trustee was unable to form a committee of unsecured creditors, an ad hoc group of bondholders assembled and filed objections to plan approval. The bondholders also filed papers asking U.S. Bankruptcy Judge Burton R. Lifland to postpone the plan-approval hearing for 60 days. The bondholders challenge legal assumptions in the plan and say that disclosure materials were faulty. The bondholders don't believe that all of Syncora's debt comes ahead of the bonds. They see the disclosure as inadequate because it didn't tell creditors about settlement of a lawsuit where Syncora alleged that American Roads and its managers "defrauded numerous creditors." The bondholders, the report discloses, therefore believe it's improper for the plan to bar claims they might have against company management. The ad hoc group points to Syncora's lawsuit begun in April 2012 where the bond insurer contended that the company "engaged in massive fraud that hid the inability of the debtors to generate sufficient funds to service their debt." The bondholders also question the valuation underpinning the plan and justifying a wipeout. The valuation by American Road's financial adviser Greenhill & Co. Inc. came up with a midpoint valuation of $205 million. The disclosure statement shows Syncora's recovery from 58.4 percent to 64.4 percent. About American Roads American Roads LLC, aka Alinda Roads LLC, which operates highways including the mile-long Detroit Windsor Tunnel linking the U.S. with Canada, sought bankruptcy court protection (Bankr. S.D.N.Y. Case No. 13-12412) in the Southern District of New York on July 25, 2013, citing $830 million in debt related to swaps and bonds. The case is assigned to Judge Burton R. Lifland. Sean A. O'Neal, Esq., and Louis A. Lipner, Esq., at Cleary Gottlieb Steen & Hamilton, LLP, represent the Debtors. Greenhill & Co., LLC, and Protiviti, Inc., serve as the Debtors' financial advisor. AMERICAN MEDIA: Posts $765,000 Net Income in Fiscal 1st Quarter --------------------------------------------------------------- American Media, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $765,000 on $90.39 million of total operating revenues for the three months ended June 30, 2013, as compared with a net loss of $1.25 million on $87.22 million of total operating revenues for the same period during the prior year. American Media incurred a net loss of $55.54 million on $348.52 million of total operating revenues for the fiscal year ended March 31, 2013, as compared with net income of $22.29 million on $386.61 million of total operating revenues for the fiscal year ended March 31, 2012. The Company's balance sheet at June 30, 2013, showed $593.16 million in total assets, $667.12 million in total liabilities, $3 million in redeemable noncontrolling interest and a $76.95 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/mPuANm About American Media Based in New York, American Media, Inc., publishes celebrity journalism and health and fitness magazines in the U.S. These include Star, Shape, Men's Fitness, Fit Pregnancy, Natural Health, and The National Enquirer. In addition to print properties, AMI manages 14 different Web sites. The company also owns Distribution Services, Inc., the country's #1 in-store magazine merchandising company. American Media, Inc., and 15 units, including American Media Operations, Inc., filed for Chapter 11 protection in Manhattan (Bankr. S.D.N.Y. Case No. 10-16140) on Nov. 17, 2010, with a prepackaged plan. The Debtors emerged from Chapter 11 reorganization in December 2010, handing ownership to former bondholders. The new owners include hedge funds Avenue Capital Group and Angelo Gordon & Co. * * * As reported by the TCR on Jan. 22, 2013, Standard & Poor's Ratings Services lowered its corporate credit rating on Boca Raton, Fla.- based American Media Inc. to 'CCC+ ' from 'B-'. "The downgrade conveys our expectation that continued declines in circulation and advertising revenues will outweigh the company's cost reductions, resulting in deteriorating operating performance, rising debt leverage, and thinning discretionary cash flow," said Standard & Poor's credit analyst Hal Diamond. AMERIGO ENERGY: Delays Form 10-Q for Second Quarter --------------------------------------------------- Amerigo Energy, Inc., notified the U.S. Securities and Exchange Commission that it will be delayed in the filing of its quarterly report on Form 10-Q for the period ended June 30, 2013. The Company said the process of compiling and disseminating the information required to be included in the Form 10-Q, as well as the completion of the required review of the Company's financial information, could not be completed without incurring undue hardship and expense. The Company undertakes the responsibility to file that quarterly report no later than five days after its original date. About Amerigo Henderson, Nevada-based Amerigo Energy, Inc., is aggressively looking for potential oil leases to acquire as well as businesses which will fit with the Company's strategy. Its wholly-owned subsidiary, Amerigo, Inc., incorporated in Nevada on Jan. 11, 2008, holds minimal assets, including oil lease interests. The Company's balance sheet at March 31, 2013, showed $2.3 million in total assets, $2.5 million in total liabilities, and a stockholders' deficit of $244,148. "As a result of Amerigo Energy's deficiency in working capital at Dec. 31, 2012, and other factors, Amerigo Energy's auditors have stated in their report that there is substantial doubt about Amerigo Energy's ability to continue as a going concern. In addition, Amerigo Energy's cash position is inadequate to pay the costs associated with its operations. No assurance can be given that any debt or equity financing, if and when required, will be available," the Company said in its quarterly report for the three months ended March 31, 2013. AMINCOR INC: Incurs $1.9 Million Net Loss in Second Quarter ----------------------------------------------------------- Amincor, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.90 million on $7.04 million of net revenues for the three months ended June 30, 2013, as compared with a net loss of $2.14 million on $12.83 million of net revenues for the same period last year. For the six months ended June 30, 2013, the Company reported a net loss of $4.39 million on $14.01 million of net revenues, as compared with a net loss of $4.75 million on $26.50 million of net revenues for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $33.75 million in total assets, $36.03 million in total liabilities and a $2.27 million total deficit. A copy of the Form 10-Q is available for free at: http://is.gd/2CfSNb About Amincor Inc. New York, N.Y.-based Amincor, Inc., is a holding company operating through its operating subsidiaries Baker's Pride, Inc., Environmental Holdings Corp. and Tyree Holdings Corp., and Amincor Other Assets, Inc. BPI is a producer of bakery goods. Tyree performs maintenance, repair and construction services to customers with underground petroleum storage tanks and petroleum product dispensing equipment. Through its wholly owned subsidiaries, Environmental Quality Services, Inc., and Advanced Waste & Water Technology, Inc., EHC provides environmental and hazardous waste testing and water remediation services in the Northeastern United States. Other Assets, Inc., was incorporated to hold real estate, equipment and loan receivables. As of March 31, 2013, all of Other Assets' real estate and equipment are classified as held for sale. As reported in the TCR on April 24, 2013, Rosen Seymour Shapss Martin & Company, in New York, expressed substantial doubt about Amincor's ability to continue as a going concern, citing the Company's recurring net losses from operations and working capital deficit of $21.2 million as of Dec. 31, 2012. APPLIED DNA: Buys Back Series C Warrants From Crede for $10,000 --------------------------------------------------------------- Applied DNA Sciences, Inc., exercised its option to repurchase the Series C Warrants issued to Crede CG III, Ltd., for $10,000. The Series C Warrants held by Crede were to initially purchase 26,737,967 shares of the Company's common stock, $.001 par value, at an initial exercise price per share of $.2431. The Series C Warrants were issued to Crede in connection with its $7.5 million investment in the Company pursuant to a Securities Purchase Agreement with the Company dated July 19, 2013. In addition, on Aug. 14, 2013, the Company exercised its option and converted the Series B Convertible Preferred Stock, held by Crede into 42,307,692 shares of the Company's common stock at a conversion price of $0.13 per share. On July 31, 2013, the second closing of the Company's transaction with Crede occurred at which Crede purchased 5,500 shares of Series B Preferred at a price of $1,000 per share with gross proceeds received by the Company of $5,500,000. About Applied DNA Stony Brook, N.Y.-based Applied DNA Sciences, Inc., is principally devoted to developing DNA embedded biotechnology security solutions in the United States. The Company's shares of common stock are quoted on the OTC Bulletin Board under the symbol "APDN." Applied DNA incurred a net loss of $7.15 million for the year ended Sept. 30, 2012, compared with a net loss of $10.51 million for the year ended Sept. 30, 2011. The Company's balance sheet at March 31, 2013, showed $5.07 million in total assets, $8.84 million in total liabilities and a $3.77 million total stockholders' deficit. ARMORWORKS ENTERPRISES: Can Employ Gallagher & Kennedy as Counsel ----------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Arizona authorized Armorworks Enterprises, LLC, and TechFiber, LLC, to employ Gallagher & Kennedy, P.A., as general bankruptcy and restructuring counsel. The firm will charge the Debtors on an hourly basis at these rates: John R. Clemency, Esq. -- john.clemency@gknet.com $575 Todd A. Burgess, Esq. -- todd.burgess@gknet.com $495 Julie Rystad, Esq. -- julie.rystad@gknet.com $450 Lindsi M. Weber, Esq. -- lindsi.weber@gknet.com $350 Rachel Milazzo, Paralegal $240 Other G&K attorneys and paralegals may render services to the Debtors as needed. Attorneys will charge $300 to $650 per hour and paralegals will bill $240 to $250 per hour. About ArmorWorks Enterprises Military armor systems provider ArmorWorks Enterprises, LLC, and affiliate TechFiber LLC sought Chapter 11 protection (Bankr. D. Ariz. Case Nos. 13-10332 and 13-10333) in Phoenix on June 17, 2013, along with a plan that resolves a dispute with a minority shareholder and $3.5 million of financing that would save the company from running out of cash. ArmorWorks develops advanced survivability technology and designs and manufactures armor and protective products. ArmorWorks has produced over 1.25 million ceramic armor and composite armor protection components for a variety of personnel armor, aircraft, and vehicle applications. The Debtors have tapped Todd A. Burgess, Esq., at Gallagher & Kennedy, as counsel; and MCA Financial Group, Ltd., as financial advisor. ArmorWorks estimated $10 million to $50 million in assets and liabilities. As of May 26, 2012, ArmorWorks had total assets of $30.9 million and total liabilities of $12.04 million. The Plan would resolve the ongoing dispute with C Squared by allowing ArmorWorks to redeem C Squared's 40% minority interest, or alternatively, allow C Squared to purchase the 60% majority interest of AWI. ArmorWorks and TechFiber sought and obtained an order (i) transferring the In re TechFiber, LLC chapter 11 case to the Honorable Brenda Moody Whinery, the judge assigned to the ArmorWorks Chapter 11 case, and (ii) authorizing the joint administration of the Debtors' cases. ARMORWORKS ENTERPRISES: Can Employ MCA as Financial Advisors ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Arizona authorized Armorworks Enterprises, LLC, and TechFiber, LLC, to employ MCA Financial Group LTD. as financial advisor. MCA, as the Debtors' financial advisor, will, among other things, assist with the preparation of statements and schedules, DIP and cash collateral budgets and forecasts, perform valuation and feasibility analysis, and to assist with formulation, negotiation, and confirmation of a chapter 11 reorganization plan. The current hourly rates for MCA's professionals expected to have primary responsibility for the engagement are: Morris C. Aaron -- maaron@mca-financial.com $425 Paul Roberts -- proberts@mca-financial.com $350 Karrilyn Thomas -- kthomas@mca-financial.com $350 Brian McHugh -- bmchugh@mca-financial.com $295 Other MCA professionals and paraprofessionals may render services to the Debtors as needed. Generally, MCA's hourly rates fall within the following ranges: Senior Managing Directors - $425 Managing Directors - $350 Directors - $295 Administrative and research personnel - $95 About ArmorWorks Enterprises Military armor systems provider ArmorWorks Enterprises, LLC, and affiliate TechFiber LLC sought Chapter 11 protection (Bankr. D. Ariz. Case Nos. 13-10332 and 13-10333) in Phoenix on June 17, 2013, along with a plan that resolves a dispute with a minority shareholder and $3.5 million of financing that would save the company from running out of cash. ArmorWorks develops advanced survivability technology and designs and manufactures armor and protective products. ArmorWorks has produced over 1.25 million ceramic armor and composite armor protection components for a variety of personnel armor, aircraft, and vehicle applications. The Debtors have tapped Todd A. Burgess, Esq., at Gallagher & Kennedy, as counsel; and MCA Financial Group, Ltd., as financial advisor. ArmorWorks estimated $10 million to $50 million in assets and liabilities. As of May 26, 2012, ArmorWorks had total assets of $30.9 million and total liabilities of $12.04 million. The Plan would resolve the ongoing dispute with C Squared by allowing ArmorWorks to redeem C Squared's 40% minority interest, or alternatively, allow C Squared to purchase the 60% majority interest of AWI. ArmorWorks and TechFiber sought and obtained an order (i) transferring the In re TechFiber, LLC chapter 11 case to the Honorable Brenda Moody Whinery, the judge assigned to the ArmorWorks Chapter 11 case, and (ii) authorizing the joint administration of the Debtors' cases. ARMORWORKS ENTERPRISES: MAC Packaging Added as Committee Member --------------------------------------------------------------- Ilene J. Lashinsky, U.S. Trustee for Region 14, amended the list of creditors appointed to the committee of unsecured creditors in the Chapter 11 case of Armorworks Enterprises, LLC, and Techfiber, LLC, due to additional creditor interest in serving the committee. The additional Committee member is: MAC Packaging Company, Inc. Andrew S. Munter 125 West Gemini Drive Suite # E-4 Tempe, AZ. 85283-5606 Tel: 480-820-0017 Fax: 480-820-3197 E-mail: andy@macpackaging.com The other members of the Committee are: 1. DISTRIBUTION BY AIR Richard Golwitzer 5404 N. 99th Street Omaha, NE 68134 Tel: (420) 657-9821 Fax: (420) 346-1161 E-mail: richg@dbaco.com 2. NORTH 54th STREET VENTURE, LLC Joseph E. Cotterman, by proxy Andante Law Group Scottsdale Financial Center I 4110 North Scottsdale Road, Suite 330 Scottsdale, AZ 85251 Tel: (480) 421-9449 Fax: (480) 522-1515 E-mail: joe@andantelaw.com 3. HISCO Monty Schlaht 1839 West Drake Drive Tempe, AZ 85253 Tel: (480) 968-6171 Fax: (480) 966-9634 E-mail: mschlaht@hiscoinc.com The U.S. Trustee is represented by Jennifer A. Giaimo, Esq. -- Jennifer.A.Giaimo@usdoj.gov -- Trial Attorney, in Phoenix, Arizona. About ArmorWorks Enterprises Military armor systems provider ArmorWorks Enterprises, LLC, and affiliate TechFiber LLC sought Chapter 11 protection (Bankr. D. Ariz. Case Nos. 13-10332 and 13-10333) in Phoenix on June 17, 2013, along with a plan that resolves a dispute with a minority shareholder and $3.5 million of financing that would save the company from running out of cash. ArmorWorks develops advanced survivability technology and designs and manufactures armor and protective products. ArmorWorks has produced over 1.25 million ceramic armor and composite armor protection components for a variety of personnel armor, aircraft, and vehicle applications. The Debtors have tapped Todd A. Burgess, Esq., at Gallagher & Kennedy, as counsel; and MCA Financial Group, Ltd., as financial advisor. ArmorWorks estimated $10 million to $50 million in assets and liabilities. As of May 26, 2012, ArmorWorks had total assets of $30.9 million and total liabilities of $12.04 million. The Plan would resolve the ongoing dispute with C Squared by allowing ArmorWorks to redeem C Squared's 40% minority interest, or alternatively, allow C Squared to purchase the 60% majority interest of AWI. ArmorWorks and TechFiber sought and obtained an order (i) transferring the In re TechFiber, LLC chapter 11 case to the Honorable Brenda Moody Whinery, the judge assigned to the ArmorWorks Chapter 11 case, and (ii) authorizing the joint administration of the Debtors' cases. ARMORWORKS ENTERPRISES: Maricopa Treas. Wants DIP Order Amended --------------------------------------------------------------- The Maricopa County Treasurer, a secured tax lien creditor, asks the U.S. Bankruptcy Court for the District of Arizona to alter or amend the stipulated final order allowing Armorworks Enterprises, LLC, and Techfiber, LLC, to obtain the Senior Secured Postpetition Financing. William G. Montgomery, Esq., Maricopa County Attorney, point out that the Final Order purports to prime statutory liens securing approximately $120,000 of personal property taxes on equipment owned by the Debtors. Arizona statutes provide that those liens are "superior to all other liens and encumbrances on the property." Mr. Montgomery says the Debtors were aware of these statutory liens when MCT served its secured proofs of claim in July. Now, the Debtors and the DIP Lender claim to have done what they could never have done outside of bankruptcy court -- they say they have primed the statutory tax liens with a "stipulated" court order to which MCT was not a party. MCT, Mr. Montgomery adds, asks that the Court clarify or amend the Final Order to ensure that it is afforded due process and that its statutory liens are adequately protected. Lori A. Lewis, Esq., Deputy County Attorney, also represents MCT. About ArmorWorks Enterprises Military armor systems provider ArmorWorks Enterprises, LLC, and affiliate TechFiber LLC sought Chapter 11 protection (Bankr. D. Ariz. Case Nos. 13-10332 and 13-10333) in Phoenix on June 17, 2013, along with a plan that resolves a dispute with a minority shareholder and $3.5 million of financing that would save the company from running out of cash. ArmorWorks develops advanced survivability technology and designs and manufactures armor and protective products. ArmorWorks has produced over 1.25 million ceramic armor and composite armor protection components for a variety of personnel armor, aircraft, and vehicle applications. The Debtors have tapped Todd A. Burgess, Esq., at Gallagher & Kennedy, as counsel; and MCA Financial Group, Ltd., as financial advisor. ArmorWorks estimated $10 million to $50 million in assets and liabilities. As of May 26, 2012, ArmorWorks had total assets of $30.9 million and total liabilities of $12.04 million. The Plan would resolve the ongoing dispute with C Squared by allowing ArmorWorks to redeem C Squared's 40% minority interest, or alternatively, allow C Squared to purchase the 60% majority interest of AWI. ArmorWorks and TechFiber sought and obtained an order (i) transferring the In re TechFiber, LLC chapter 11 case to the Honorable Brenda Moody Whinery, the judge assigned to the ArmorWorks Chapter 11 case, and (ii) authorizing the joint administration of the Debtors' cases. AS SEEN ON TV: Incurs $533,500 Net Loss in June 30 Quarter ---------------------------------------------------------- As Seen On TV, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $533,530 on $2.09 million of revenues for the three months ended June 30, 2013, as compared with a net loss of $10.74 million on $400,231 of revenues for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $23.81 million in total assets, $13.05 million in total liabilities and $10.75 million in total stockholders' equity. Bankruptcy Warning "We face a number of challenges during fiscal 2014, including operating within the highly competitive the online diet industry, effectively responding to ever changing consumer preferences and completing our eDiets integration. We must also raise additional funds to provide the resources necessary to continue in business and to realize the expected benefits of our initiatives. The continuation of the Company's business is dependent upon raising additional financial support. In light of the Company's results from operations, the Company intends to continue to evaluate various possibilities, including: (i) raising additional capital through the issuance of common or preferred stock, securities convertible into common stock, or secured or unsecured debt, (ii) selling one or more lines of business, or all or a portion of the Company's assets, (iii) entering into a business combination, and (iv) aggressively restructuring existing operations, including reducing or eliminating less promising operations, liquidating assets, or significantly reducing or suspending our operations. These possibilities, to the extent available, may be on terms that result in significant dilution to the Company's shareholders or that result in the Company?s shareholders losing all of their investment in the Company. There can be no assurance that the Company will be successful in effecting any of the above possibilities. If the company's efforts in this regard are unsuccessful, the Company will be required to further reduce or suspend operations [and/or seek relief through a filing under the U.S. Bankruptcy Code]. The Company's condensed consolidated financial statements do not include any adjustments relating to the recoverability of assets and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern." A copy of the Form 10-Q is available for free at: http://is.gd/R0J0h7 About As Seen on TV Clearwater, Fla.-based As Seen On TV, Inc., is a direct response marketing company. It identifies, develops, and markets consumer products. As reported by the TCR on Nov. 6, 2012, As Seen On TV entered into an Agreement and Plan of Merger with eDiets Acquisition Company ("Merger Sub"), eDiets.com, Inc., and certain other individuals. Pursuant to the Merger Agreement, Merger Sub will merge with and into eDiets.com, and eDiets.com will continue as the surviving corporation and a wholly-owned subsidiary of the Company. As Seen On TV, Inc., filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing net income of $3.69 million on $10.10 million of revenues for the year ended March 31, 2013, as compared with a net loss of $8.07 million on $8.16 million of revenues during the prior year. EisnerAmper LLP, in Edison, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended March 31, 2013. The independent auditors noted that the Company's recurring losses from operations and negative cash flows from operations raise substantial doubt about its ability to continue as a going concern. AVIS BUDGET: Moody's Keeps Notes Ratings over Zipcar Canada Pact ---------------------------------------------------------------- Moody's Investors Service reports that the addition of Zipcar Canada Inc. as a general partner to WTH Funding Limited Partnership on August 21, 2013, in and of itself and at this time, will not result in a reduction, withdrawal, or placement under review for possible downgrade of the ratings currently assigned to the Issuer's Series 2010-1 and 2010-2 notes. The Partnership leases a fleet of vehicles from the WTH Car Rental ULC (WTH), pursuant to a master lease agreement. WTH is Avis Budget Car Rental LLC (Avis Budget)'s Canadian rental car ABS trust, which owns the vehicles that are leased to the Partnership and used by the Partnership in its daily car rental business. Budgetcar Inc., Aviscar Inc. and Zipcar Canada Inc., all indirect Canadian subsidiaries of Avis Budget, are general partners of the Partnership. Avis Budget is itself a subsidiary of Avis Budget Group (B1 stable). The addition of Zipcar as a general partner will allow Avis Budget to fund new vehicles added to the Zipcar fleet through WTH. Given that Zipcar vehicles are expected to comprise less than 3% of the combined vehicle fleet, Moody's believed that the addition of Zipcar as a general partner did not have an adverse effect on the credit quality of the Series 2010-1 and 2010-2 notes such that the Moody's ratings were impacted. Moody's did not express an opinion as to whether the addition of Zipcar could have other, noncredit-related effects. The principal methodology used in these rating was "Moody's Global Approach to Rating Rental Car ABS and Rental Truck ABS," published in July 2011. AXION INTERNATIONAL: Posts $3.1 Million Net Income in 2nd Quarter ----------------------------------------------------------------- AXION International Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income attributable to common shareholders of $3.10 million on $1.49 million of revenue for the three months ended June 30, 2013, as compared with a net loss attributable to common shareholders of $2.20 million on $1.79 million of revenue for the same period during the prior year. For the six months ended June 30, 2013, the Company reported a net loss attributable to common shareholders of $4.17 million on $3.25 million of revenue, as compared with a net loss attributable to common shareholders of $3.96 million on $4.09 million of revenue for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $8.66 million in total assets, $10.84 million in total liabilities, $6.33 million in 10 percent convertible preferred stock, and a $8.52 million total stockholders' deficit. "In the second quarter we've continued to grow our sales pipeline and we are on track with our strategic plans for 2013 on all fronts. We are exactly where we expected to be after the first six months of the year. We reiterate our statement from last quarter that achieving higher sales volumes, coupled with being a vertically integrated manufacturer, puts us on a path towards positive earnings. We expect to see increased sales volume in the second half of 2013, as planned. Major sales initiatives in our pipeline are on schedule and our current backlog and sales opportunities give us a high degree of confidence that we can expect to double AXION's sales in calendar 2013 over 2012 revenues of $5.3 million," stated AXION President and CEO Steve Silverman. A copy of the Form 10-Q is available for free at: http://is.gd/dTv5Zd About Axion International New Providence, N.J.-based Axion International Holdings, Inc. (OTC BB: AXIH) - http://www.axionintl.com/-- is the exclusive licensee of patented and patent-pending technologies developed for the production of structural plastic products such as railroad crossties, pilings, I-beams, T-Beams, and various size boards including a tongue and groove design that are utilized in multiple engineered design solutions such as rail track, rail and tank bridges (heavy load), pedestrian/park and recreation bridges, marinas, boardwalks and bulk heading to name a few. RBSM LLP, in New York, the auditor, issued a going concern qualification each in the Company's financial statements for the years ended Dec. 31, 2010, and 2011. RBSM LLP noted that the Company has incurred significant operating losses in current year and also in the past. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern, it said. Axion International reported a net loss of $9.93 for the 12 months ended Dec. 31, 2011, compared with a net loss of $7.10 million for the 12 months ended Sept. 30, 2010. BEAZER HOMES: NYSE Delists 7.25 Percent Tangible Equity Units ------------------------------------------------------------- The New York Stock Exchange LLC filed a Form 25 with the U.S. Securities and Exchange Commission to remove from registration 7.25 percent tangible equity units of Beazer Homes USA Inc. About Beazer Homes Beazer Homes USA, Inc. (NYSE: BZH) -- http://www.beazer.com/-- headquartered in Atlanta, is one of the country's 10 largest single-family homebuilders with continuing operations in Arizona, California, Delaware, Florida, Georgia, Indiana, Maryland, Nevada, New Jersey, New Mexico, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, and Virginia. Beazer Homes is listed on the New York Stock Exchange under the ticker symbol "BZH." Beazer Homes incurred a net loss of $145.32 million for the fiscal year ended Sept. 30, 2012, a net loss of $204.85 million for the fiscal year ended Sept. 30, 2011, and a net loss of $34.04 million for the fiscal year ended Sept. 30, 2010. As of June 30, 2013, the Company had $1.94 billion in total assets, $1.71 billion in total liabilities and $227.98 million in total stockholders' equity. * * * Beazer carries a 'B-' issuer credit rating, with "negative" outlook, from Standard & Poor's. In the Jan. 30, 2013, edition of the TCR, Moody's Investors Service raised Beazer Homes USA, Inc.'s corporate family rating to Caa1 from Caa2 and probability of default rating to Caa1-PD from Caa2-PD. The ratings upgrade reflects Moody's increasing confidence that Beazer's credit metrics, buoyed by a stregthening housing market, will gradually improve for at least the next two years and that the company may be able to return to a modestly profitable position as early as fiscal 2014. As reported by the TCR on Sept. 10, 2012, Fitch Ratings has upgraded the Issuer Default Rating (IDR) of Beazer Homes USA, Inc. (NYSE: BZH) to 'B-' from 'CCC'. The upgrade and the Stable Outlook reflect Beazer's operating performance so far this year, its robust cash position, and moderately better prospects for the housing sector during the remainder of this year and in 2013. The rating is also supported by the company's execution of its business model, land policies, and geographic diversity. BENTLEY PREMIER: Can Use Cash Collateral Thru Sept. 3 ----------------------------------------------------- Judge Brenda Rhoades authorized Bentley Premier Builders, LLC to use the cash collateral of its lenders, The Phillip M. Pourchot Revocable Trust and/or The Starside, LLC, through Sept. 3, 2013 at 9:30 a.m. or on failure to cure a default in accordance with a prepared budget. A copy of the prepared interim budget to be complied to by the Debtor is available at: http://bankrupt.com/misc/BENTLEYPREMIER_cashcollbudget.pdf The Bankruptcy Court agrees that the Debtor needs cash to enable them to pay necessary operating expenses, including fees, insurance premiums, utilities, among other things. As adequate protection for the Debtor's cash collateral use and any diminution in value in other collateral, the Lenders are granted a continuing and replacement security interest in all of the same property of the Debtor that it had pursuant to the Prepetition Loan Documents. In the event adequate protection to the Lenders is insufficient to protect the Lenders, then the Lenders' claim will have a priority under Sec. 507(b) of the Bankruptcy Code over all administrative expenses incurred in the Chapter 11 case. A final hearing on the Cash Collateral Use Motion will be held on Sept. 3, 2013. Mark E. Andrews, Esq., of 1201 Elm Street, Suite 3300, Dallas Texas, 75270, serve as attorney for the Lenders. He can be reached at tel no. (214) 698-7819 and fax no. (214) 698-7899. About Bentley Premier Bentley Premier Builders, LLC, is a Texas limited liability company in the business of real estate development and building custom houses. It filed a Chapter 11 petition (Bankr. E.D. Tex. Case No. 13-41940) on Aug. 6, 2013 in Sherman, Texas. Judge Brenda Rhoades presides over the case. Gerald P. Urbach, Esq., and Jason A. Katz, Esq., at Hiersche, Hayward, Drakeley & Urbach, P.C., in Addison, Texas, serve as counsel. The Debtor estimated assets and debts of $10 million to $50 million. BENTLEY PREMIER: Gets Court Nod to Files Schedules by Sept. 3 ------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Texas granted Bentley Premier Builders, LLC, extension to file its schedules of assets and liabilities as well as its statement of financial affairs through Sept. 3, 2013. As previously reported in the Aug. 16 edition of the Troubled Company Reporter, Bentley Premier, in its Schedules Extension Motion, asserted that it is taking longer than usual to gather the information necessary for the completion of the schedules and statement due in large part to the resignation of Mark Powell, the Debtor's chief foreman. Sandy Golgart, managing member of the Debtor, was left to run the Debtor's affairs after Mr. Powell's resignation. About Bentley Premier Bentley Premier Builders, LLC, is a Texas limited liability company in the business of real estate development and building custom houses. It filed a Chapter 11 petition (Bankr. E.D. Tex. Case No. 13-41940) on Aug. 6, 2013 in Sherman, Texas. Judge Brenda Rhoades presides over the case. Gerald P. Urbach, Esq., and Jason A. Katz, Esq., at Hiersche, Hayward, Drakeley & Urbach, P.C., in Addison, Texas, serve as counsel. The Debtor estimated assets and debts of $10 million to $50 million. BENTLEY PREMIER: Wants to Hire Hiersche Hayward as Counsel ---------------------------------------------------------- Bentley Premier Builders, LLC, is seeking bankruptcy court approval to tap Hiersche, Hayward, Drakeley & Urbach, P.C. as attorneys for its pending Chapter 11 case. Gerald P. Urbach, Esq., and Jason M. Katz, Esq. -- jkatz@hhdulaw.com -- are the firm's professionals who are expected to provide legal services to the Debtor. The Debtor expects the HHDU firm to provide legal servces on matters involving financial restructuring and insolvency issues, including exploration of possible non-bankruptcy restructuring alternatives, as well as preparation of the requisite petitions, pleadings, exhibits, lists and schedules in connection with the commencement of the Chapter 11 case. HHDU has advised the Debtor that the representation of the Debtor will involve fees and expenses of more than $13,000 and the firm expects to be paid for future fees and expenses out of the Debtor's operations, after appropriate order of the Court. To the best of the Debtor's knowledge, HHDU does not have any connection with, or any interest adverse to, the Debtor, its creditors, or any other party-in-interest or their respective attorneys and accountants, or the U.S. Trustee for the Eastern District of Texas. Accordingly, HHDU and its professionals are "disinterested persons" as the term is defined under Sec. 101(14) of the Bankruptcy Code. About Bentley Premier Bentley Premier Builders, LLC, is a Texas limited liability company in the business of real estate development and building custom houses. It filed a Chapter 11 petition (Bankr. E.D. Tex. Case No. 13-41940) on Aug. 6, 2013 in Sherman, Texas. Judge Brenda Rhoades presides over the case. The Debtor estimated assets and debts of $10 million to $50 million. BENTLEY PREMIER: Pourchot Trust Seeks Dismissal of Chap. 11 Case ---------------------------------------------------------------- The Phillip M. Pourchot Revocable Trust asks the U.S. Bankruptcy Court for the Eastern District of Texas to dismiss in its entirety, with prejudice, the bankruptcy proceeding of Bentley Premier Builders, LLC. POURCHOT complains that Sandy Golgart's filing of the Debtor's bankruptcy petition as the Debtor's purported manager without a majority of the members approval is not authorized by Texas law or the Company Agreement. POURCHOT asserts that it holds a 50% member interest and did not consent to the filing of the Chapter 11 case and thus, the case should be dismissed. The Phillip M. Pourchot Revocable Trust is represented by: JONES, ALLEN & FUQUAY, L.L.P. Laura L. Worsham, Esq. Nathan Allen, Jr. Esq. Lindy D. Jones, Esq. 8828 Greenville Avenue Dallas, Texas 75243 Tel No: (214) 343-7400 Fax No: (214) 343-7455 About Bentley Premier Bentley Premier Builders, LLC, is a Texas limited liability company in the business of real estate development and building custom houses. It filed a Chapter 11 petition (Bankr. E.D. Tex. Case No. 13-41940) on Aug. 6, 2013 in Sherman, Texas. Judge Brenda Rhoades presides over the case. Gerald P. Urbach, Esq., and Jason A. Katz, Esq., at Hiersche, Hayward, Drakeley & Urbach, P.C., in Addison, Texas, serve as counsel. The Debtor estimated assets and debts of $10 million to $50 million. BERLIN & DENMAR: Forfeiture of Goldstein's Deposit Upheld --------------------------------------------------------- A New York district court affirmed a bankruptcy court decision on Goldstein Development Corp.'s motion seeking the return of a deposit made in connection with the sale of Berlin & Denmar Distributors, Inc. assets. The bankruptcy court order was entered on Feb. 25, 2013 by Judge Stuart M. Bernstein, ordereing Goldstein to forfeit $50,000 of its $94,000 deposit related to the auction of the Debtor's assets. The assets pertain to the Debtor's shares in three cooperative units located at a prime location in Bronx, New York. In a July 31, 2013 Order and Opinion available at http://is.gd/8cAINFfrom Leagle.com, District Judge Lorna Schofield cited that the record provides ample support for the bankruptcy court's factual finding that Goldstein failed to close on the sale transaction because it failed to conduct appropriate due diligence and the bankruptcy court's legal decision that Goldstein should forfeit its deposit. The appeals case is GOLDSTEIN DEVELOPMENT CORP., Interested Party/Appellant v. BERLIN & DENMAR DISTRIBUTORS, INC., Debtor/Appellee, Case No. 13-CIV. 2310 (LGS) (S.D.N.Y.). Berlin & Denmar Distributors, Inc. is represented by Jonathan W. Rich, Esq. -- jwr@robinsonbrog.com -- and Robert Mitchell Sasloff, Esq. -- rms@robinsonbrog.com -- of Robinson Brog Leinwand Greene Genovese & Gluck P.C. Goldstein Development Corp. is represented by Satish Kumar Bhatia, Esq., of Bhatia & Associates, P.C. About Berlin & Denmar Before bankruptcy Berlin & Denmar Distributors, Inc. operated a food distribution business from cooperative units located at the Hunts Point Cooperative Market, in Bronx, New York. On Oct. 21, 2010, Berlin filed a voluntary bankruptcy petition (Bankr. S.D.N.Y., Case No. 10-15519). On Jan. 9, 2012, Judge Bernstein entered an order approving the Disclosure Statement of the Debtor's Second Amended Plan of Liquidation. The centerpiece of the Plan was the sale of the Debtor's shares in four cooperative units located at Hunts Point. BIG M: Exclusive Filing Period Extended Until Nov. 4 ---------------------------------------------------- The U.S. Bankruptcy Court for the District of New Jersey extended Big M, Inc.'s exclusive periods to file and solicit acceptances of a plan through and including Nov. 4, 2013, and Jan. 1, 2014, respectively. Counsel for the Debtor can be reached at: LOWENSTEIN SANDLER LLP Kenneth A. Rosen, Esq. Mary E. Seymour, Esq. Eric H. Horn, Esq. 65 Livingston Avenue Roseland, NJ 07068 Tel: (973) 597-2500 Fax: (973) 597-2400 About Big M Totowa, New Jersey-based Big M, Inc., owner of Mandee, Annie sez, and Afazxe Stores, filed a Chapter 11 petition (Bankr. D.N.J. Case No. 13-10233) on Jan. 6, 2013, with Salus Capital Partners, LLC, funding the Chapter 11 effort. Judge Donald H. Steckroth presides over the case. The Mandee brand is a juniors fashion retailer with 84 stores in Illinois and along the East Coast. Annie sez is a discount department-store retailer for women with 35 stores. Afaze is 10-store jewelry and accessory chain. Kenneth A. Rosen, Esq., at Lowenstein Sandler LLP, in Roseland, serves as counsel to the Debtor. PricewaterhouseCoopers LLP has been tapped to serve as financial advisor. GRL Capital Advisors LLC's Glenn R. Langberg has been hired to serve as chief restructuring officer. Attorneys at Becker Meisel LLC serve the Debtor as conflicts counsel. The Debtor disclosed $21,384,430 in assets and $21,374,057 in liabilities as of the Chapter 11 filing. The Official Committee of Unsecured Creditors has tapped Cooley Godward Kroish, LLP, as its counsel, and CBIZ Accounting, Tax and Advisory of New York, LLC and CBIZ Mergers & Acquisitions Group as its financial advisor. As reported in the TCR on June 7, the Bankruptcy Court authorized the Debtor to sell substantially all of its assets to YM LLC USA, formerly known as YM Inc USA, pursuant to an asset purchase agreement. BIOZONE PHARMACEUTICALS: Incurs $746,000 Net Loss in 2nd Qtr. ------------------------------------------------------------- Biozone Pharmaceuticals, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q for the period ended June 30, 2013, disclosing a net loss of $745,956 on $1.95 million of sales, as compared with a net loss of $714,438 on $4.91 million of sales for the same period during the prior year. For the six months ended June 30, 2013, the Company reported a net loss of $2.22 million on $3.98 million of sales, as compared with a net loss of $4.36 million on $8.42 million of sales for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $7.70 million in total assets, $13.00 million in total liabilities and a $5.30 million total shareholders' deficiency. A copy of the Form 10-Q is available for free at: http://is.gd/T525pC About Biozone Pharmaceuticals Biozone Pharmaceuticals, Inc., formerly, International Surf Resorts, Inc., was incorporated under the laws of the State of Nevada on Dec. 4, 2006, to operate as an internet-based provider of international surf resorts, camps and guided surf tours. The Company proposed to engage in the business of vacation real estate and rentals related to its surf business and it owns the Web site isurfresorts.com. During late February 2011, the Company began to explore alternatives to its original business plan. On Feb. 22, 2011, the prior officers and directors resigned from their positions and the Company appointed a new President, Director, principal accounting officer and treasurer and began to pursue opportunities in medical and pharmaceutical technologies and products. On March 1, 2011, the Company changed its name to Biozone Pharmaceuticals, Inc. Since March 2011, the Company has been engaged primarily in seeking opportunities related to its intention to engage in medical and pharmaceutical businesses. On May 16, 2011, the Company acquired substantially all of the assets and assumed all of the liabilities of Aero Pharmaceuticals, Inc., pursuant to an Asset Purchase Agreement dated as of that date. Aero manufactures markets and distributes a line of dermatological products under the trade name of Baker Cummins Dermatologicals. On June 30, 2011, the Company acquired the Biozone Labs Group which operates as a developer, manufacturer, and marketer of over- the-counter drugs and preparations, cosmetics, and nutritional supplements on behalf of health care product marketing companies and national retailers. Biozone incurred a net loss of $7.96 million in 2012, as compared with a net loss of $5.45 million in 2011. Paritz and Company. P.A., in Hackensack, New Jersey, 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 operating losses for its last two fiscal years, has a working capital deficiency of $5,255,220, and an accumulated deficit of $14,128,079. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. BOREAL WATER: Delays Form 10-Q for Second Quarter ------------------------------------------------- Boreal Water Collection, Inc., was unable to file its quarterly report on Form 10-Q for the period ended June 30, 2013, in a timely manner because the Company was not able to complete timely its financial statements without unreasonable effort or expense. Kiamesha Lake, N.Y.-based Boreal Water Collection, Inc., is a personalized bottled water company specializing in premium custom bottled water. The Company reported a net loss of $822,902 on $2.7 million of sales in 2012, compared with a net loss of $1.3 million on $2.7 million of sales in 2011. In the auditors's report accompanying the consolidated financial statements for the year ended Dec. 31, 2012, Patrick Rodgers, CPA, PA, in Altamonte Springs, Florida, expressed substantial doubt about Boreal Water's ability to continue as a going concern. Mr. Rodgers noted that the Company has a minimum cash balance available for payment of ongoing operating expenses, has experienced losses operations since inception, and it does not have a source of revenue sufficient to cover its operating costs. The Company's balance sheet at March 31, 2013, showed $3.62 million in total assets, $4.04 million in total liabilities and a $412,198 total stockholders' deficiency. BRUNET-SUAREZ INVESTMENT: Case Summary & Creditors List ------------------------------------------------------- Debtor: Brunet-Suarez Investment, Inc. 8550 West Flager Street, Suite 116 Miami, FL 33144 Bankruptcy Case No.: 13-29972 Chapter 11 Petition Date: August 22, 2013 Court: U.S. Bankruptcy Court Southern District of Florida (Miami) Judge: A. Jay Cristol Debtor's Counsel: Jonathan Y. Markhoff, Esq. LAW OFFICE OF YONI MARKHOFF, P.A. 1108 Kane Concourse (96 St) #206 Bay Harbor Island, FL 33154 Tel: (786) 463-4436 E-mail: yoni@markhoffpa.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The petition was signed by Julio Brunet, CEO. The Company's list of its largest unsecured creditors filed with the petition contains only one entry: Entity Nature of Claim Claim Amount ------ --------------- ------------ Coconut Grove Bank 11750 SW 88 Ave 2701 South Bayshore Drive Miami, FL 33176 Miami, FL 33133 CAMARILLO PLAZA: Plan to Be Funded by All-Cash Sale of Property --------------------------------------------------------------- Camarillo Plaza, LLC, filed with the U.S. Bankruptcy Court for the Central District of California a third amended Chapter plan of reorganization that will be funded through the all-cash sale of the Debtor's 74,072 square foot shopping center commonly known as Camarillo Plaza and the underlying real property, located at 1701- 1877 East Daily Drive, in Camarillo, California (the Property") to be conducted via a competitive bidding process. The Debtor has filed a motion to approve the sale of the Property in accordance with the Bidding Procedures, which will be heard at the same time as the confirmation hearing for the Plan. Following consummation of the sale of the Property pursuant to the Bidding Procedures, there will be net cash proceeds sufficient to satisfy all allowed claims. The Debtor and the Wells Fargo Bank, N.A., as Trustee for the Registered Holders of Credit Suisse First Boston Mortgage Securities Corp., Commercial Pass-Through Certificates, Series 2006-C3 (the "Noteholder"), have entered into the Stipulation Regarding Proof of Claim 3-1 regarding the Noteholder's claim. Under the Claim Stipulation, the Noteholder's allowed claim as of July 15, 2013, is $15,159,517.42, but is subject to adjustment as of the Effective Date as more specifically set forth therein. The Debtor has filed a motion to approve the Claim Stipulation, which will be heard at the same time as the confirmation hearing for this Plan. This class is impaired and entitled to vote. General unsecured creditors holding undisputed claims under Class 3(a) will be paid 100% of its claim without interest on the Effective Date. The hearing to consider the approval of the Plan will be held on Sept. 12, 2013, at 10:00 a.m. A copy of the Third Amended Plan is available at: http://bankrupt.com/misc/camarilloplaza.doc174.pdf Counsel for the Debtor can be reached at: Janet A. Lawson, Esq. 3639 E Harbor Blvd #109 Ventura, CA 93001 Tel: (805) 985-1147 Fax: (805) 658-2302 E-mail: jlawsonlawyer@gmail.com About Camarillo Plaza Shopping center operator Camarillo Plaza LLC, based in Los Angeles, California, filed for Chapter 11 bankruptcy (Bankr. C.D. Calif. Case No. 11-59637) on Dec. 5, 2011. Judge Sheri Bluebond was assigned to the case. At the Debtor's behest the next day, the case was transferred to the Northern Division (Bankr. C.D. Calif. Case No. 11-bk-15562). The case in the Los Angeles Division was closed, and Judge Robin Riblet took over from Judge Bluebond. The Debtor scheduled assets of $21.6 million and liabilities of $12.3 million as of the Chapter 11 filing. Janet A. Lawson, Esq., in Ventura County, California, serves as the Debtor's counsel. The petition was signed by Aaron Arnold Klein, managing partner. Alan M. Feld, Esq., at Sheppard, Mullin, Richter & Hampton LLP represents Wells Fargo Bank, N.A. CANCER GENETICS: Offering 1.5 Million Common Shares --------------------------------------------------- Cancer Genetics, Inc., announced the pricing of its public offering of 1,500,000 shares of its common stock at a price to the public of $10.00 per share. The gross proceeds to Cancer Genetics from the public offering are expected to be $15,000,000, before underwriting discounts and commissions and other offering expenses payable by Cancer Genetics. The Company intends to use the net proceeds from the offering to expand sales and marketing, to further product commercialization, to invest in its Mayo Clinic joint venture, to retire mezzanine financing, to continue research and development, and to fund other general working capital needs. Cancer Genetics also said that its common stock began trading on The NASDAQ Capital Market under the symbol "CGIX" on Aug. 14, 2013. In connection with this listing, Cancer Genetics' common stock will cease trading on the OTC QB. Cancer Genetics has also granted the representative of the underwriters a 45-day option to purchase up to 225,000 additional shares of common stock from Cancer Genetics to cover over- allotments, if any. The offering is expected to close on Aug. 19, 2013, subject to customary closing conditions. Aegis Capital Corp. is acting as sole book-running manager for the offering. Feltl and Company, Inc., is acting as co-lead manager for the offering. This offering is being made only by means of a prospectus. Copies of the prospectus relating to this offering may be obtained by contacting Aegis Capital Corp., Prospectus Department, 810 Seventh Avenue, 18th Floor, New York, NY 10019, telephone: 212-813-1010, e-mail: prospectus@aegiscap.com. A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on Aug. 13, 2013. About Cancer Genetics Rutherford, N.J.-based Cancer Genetics, Inc., is an early-stage diagnostics company focused on developing and commercializing proprietary genomic tests and services to improve and personalize the diagnosis, prognosis and response to treatment (theranosis) of cancer. The Company's balance sheet at March 31, 2013, showed $7.4 million in total assets, $28.9 million in total liabilities, and a stockholders' deficit of $21.5 million. "The Company has suffered recurring losses from operations, has negative working capital and a net capital deficiency that raise substantial doubt about its ability to continue as a going concern," according to the Company's quarterly report for the period ended March 31, 2013. CAPMARK FINANCIAL: Wells Fargo Settles $28MM Swaps Suit ------------------------------------------------------- Law360 reported that Capmark Financial Group Inc. asked a Delaware bankruptcy judge to bless a settlement resolving a $28 million suit brought by Wells Fargo Bank NA over swaps deals that went south when the mortgage lender entered court protection in 2009. According to the report, Wells Fargo terminated the swaps transactions in the wake of the bankruptcy filing and eventually launched an adversary suit asserting damages of more $27.8 million, with Capmark countering that the actual figure is no greater $3.8 million. Capmark and Wells Fargo subsequently "engaged in arm's-length negotiations," the report related. About Capmark Financial Based in Horsham, Pennsylvania, Capmark Financial Group Inc. -- http://www.capmark.com/-- provided financial services to investors in commercial real estate-related assets. Capmark has three core businesses: lending and mortgage banking, investments and funds management, and servicing. Capmark operates in North America, Europe and Asia. Capmark has 1,000 employees located in 37 offices worldwide. On Oct. 25, 2009, Capmark Financial and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 (Bankr. D. Del. Lead Case No. 09-13684). Capmark disclosed assets of US$20 billion against total debts of US$21 billion as of June 30, 2009. Capmark's financial advisors were Lazard Freres & Co. LLC and Loughlin Meghji + Company. Capmark's bankruptcy counsel were Dewey & LeBoeuf LLP, and Richards, Layton & Finger, P.A. Beekman Advisors, Inc., is serving as strategic advisor. KPMG LLP served as tax and accounting advisor. Epiq Bankruptcy Solutions, LLC, served as claims and notice agent. The Official Committee of Unsecured Creditors tapped Kramer Levin Naftalis & Frankel LLP as its counsel and JR Myriad 1LLC as its commercial real estate business advisors. The Committee also retained Cutler Pickering Hale and Dorr LLP as its attorneys for the special purpose of providing legal services in connection with Federal Deposit Insurance Corporation matters. Protech Holdings C LLC, an affiliate of Capmark, filed for Chapter 11 protection on July 29, 2010 (Bankr. D. Del. Case No. 10-12387). Protech estimated assets and debts in excess of $1 billion as of the filing date. Since filing for Chapter 11, Capmark completed three sales to generate more than $1 billion in cash. Berkshire Hathaway Inc. and Leucadia National Corp. bought most of the business for $468 million. In April 2011, Greenline Ventures LLC completed the acquisition of the New Markets Tax Credit division of Capmark Financial Group Inc. Since inception of the NMTC program, Capmark's NMTC division has closed over $1.1 billion of NMTC investment funds and financed over $2.5 billion of projects and businesses in low income communities nationwide. Capmark won confirmation of its reorganization plan in August 2011 allowing it to distribute about $4 billion of stock, cash and new debt to unsecured creditors and streamline operations around its flagship bank. Unsecured creditors were to receive $900 million in cash, $1.25 billion in secured notes and 100 million shares in reorganized Capmark, now a bank holding company. The plan was declared effective in October. Also in October 2011, Capmark closed the sale of its low-income housing tax credit asset portfolio to Hunt Cos. Inc., a national real estate services company. El Paso, Texas-based Hunt was the successful bidder in the auction of the assets, paying $102.4 million. CASH STORE: Reports $6.8 Million Net Loss in June 30 Quarter ------------------------------------------------------------ The Cash Store Financial Services Inc. reported a net loss and comprehensive loss of $6.89 million on $46.32 million of revenue for the three months ended June 30, 2013, as compared with a net loss and comprehensive loss of $3.57 million on $48.65 million of revenue for the same period last year. For the nine months ended June 30, 2013, the Company reported a net loss and comprehensive loss of $12.87 million on $142.48 million of revenue as compared with a net loss and comprehensive loss of $43.77 million on $136.59 million of revenue for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $192.73 million in total assets, $171.47 million in total liabilities and $21.25 million in shareholders' equity. Mr. Gordon Reykdal, CEO, commented, "The third quarter was notable as we continue to see strong results in our core consumer lending and brokering business. We are pleased with the roll-out of our suite of lines of credit products in Manitoba and Ontario, which has contributed to increases in loan fees on a year over year basis - despite having consolidated more than 60 branches from our Canadian operations last year." The Board of Directors has determined not to issue a quarterly dividend in respect of the third quarter of fiscal 2013, the period ended June 30, 2013. The Board of Directors reviews the Company's dividend distribution policy on a quarterly basis. This review includes evaluating the financial position, profitability, cash flow and other factors that the Board of Directors considers relevant. A copy of the press release is available for free at: http://is.gd/YK6faO About Cash Store Financial Headquartered in Edmonton, Alberta, The 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. Cash Store Financial employs approximately 1,900 associates. * * * 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 believes that the registrar's proposal could lead to similar actions in other territories," the Company said. As reported by the TCR on May 22, 2013, Moody's Investors Service downgraded the Corporate Family Rating and senior unsecured debt rating of Cash Store Financial Services to Caa1 from B3 and assigned a negative outlook. According to Moody's, CSFS remains unprofitable on both the pretax and net income lines and prospects for return to profitability are unclear. CASPIAN SERVICES: Delays Form 10-Q for Second Quarter ----------------------------------------------------- Caspian Services, Inc.'s quarterly report for the period ended June 30, 2013, was not timely filed because the management requires additional time to compile and verify the data required to be included in the report. According to the Company, the report will be filed within five calendar days of the date the original report was due. The Company anticipates that during the three and nine month periods ended June 30, 2013, total revenues will have increased approximately 22 percent and 15 percent, respectively compared to the comparable periods of the prior fiscal year. This increase is primarily attributable to higher geophysical services revenues. Vessel revenues are expected to be slightly higher in the three months ended June 30, 2013, but significantly lower in the nine months ended June 30, 2013. Marine base revenue is expected to be slightly higher in both the three and nine month periods ended June 30, 2013. The Company believes that total costs and operating expenses during the three and nine month periods ended June 30, 2013, will not have changed significantly compared to the three and nine month periods ended June 30, 2012, with a slight decrease occurring in the three month period of 2013 and a slight increase in the nine month period of 2013. The Company anticipates income from operations of approximately $1.4 million during the three months ended June 30, 2013, compared to a loss from operations of approximately $680,000 during the three months ended June 30, 2012. During the nine months ended June 30, 2013, the Company anticipates a loss from operations of approximately $1.8 million compared to a loss from operations of approximately $4.8 million during the nine months ended June 30, 2012. The Company expects to realize net losses from continuing operations net of discontinued operations of approximately $700,000 and $5.8 million, respectively, for the three and nine month periods ended June 30, 2013, compared to net losses from continuing operations net of discontinued operations of approximately $2.1 million and $10 million, respectively during the three and nine month periods ended June 30, 2012. During the quarter, the Company agreed to sell its interest in its majority- owned subsidiary Kazmorgeophysica JSC, as a result, the Company anticipates realizing losses from discontinued operations during the three and nine month periods ended June 30, 2013, of approximately $4.8 million and $5.3 million, respectively and $1.3 million and $2 million, respectively during the three and nine month periods ended June 30, 2012. During the three and nine month periods ended June 30, 2013, the Company anticipates realizing a net losses attributable to Caspian Services, Inc. (net of non-controlling interests) of approximately $5 million and $10.3 million, respectively, compared to net losses attributable to Caspian Services, Inc., of approximately $2.6 million and $10.3 million, respectively during the three and nine month periods ended June 30, 2012. About Caspian Services Headquartered in Salt Lake City, Caspian Services, Inc., was incorporated under the laws of the state of Nevada on July 14, 1998. Since February 2002 the Company has concentrated its business efforts to provide diversified oilfield services to the oil and gas industry in western Kazakhstan and the Caspian Sea, including providing a fleet of vessels, onshore, transition zone and marine seismic data acquisition and processing services and a marine supply and support base in the port of Bautino, in Bautino Bay, Kazakhstan. The Company's balance sheet at March 31, 2013, showed $84.90 million in total assets, $87.98 million in total liabilities and a $3.08 million total deficit. Going Concern Uncertainty Under the terms of the EBRD Loan Agreement, as amended, Balykshi LLP, the Company's majority owned subsidiary, is required to repay the loan principal and accrued interest in eight equal semi-annual installments commencing Nov. 20, 2011, and then occurring each May 20 and November 20 thereafter until fully repaid. The first three semi-annual repayment installments, due Nov. 20, 2011, May 20, 2012, and Nov. 20, 2012, were not made. Additionally, an event of default may trigger the acceleration clause in the Put Option Agreement with EBRD which would allow EBRD to put its $10,000,000 investment in Balykshi back to the Company. If EBRD were to accelerate its put right, the Company could be obligated to repay the initial investment plus a 20% annual rate of return. The balance of accelerated put option liability was $18,326,000 and $17,822,000 as of Dec. 31, 2012, and Sept. 30, 2012. EBRD also previously notified the Company that it believes the Company and Balykshi are in violation of certain other covenants of the EBRD financing agreements. As of Feb. 19, 2013, to the Company's knowledge, EBRD has not sought to accelerate repayment of the loan or the put option. Should EBRD determine to exercise its acceleration rights or should the Loan Restructuring Agreement with an otherwise unrelated individual (the "Investor") not close, the Company currently has insufficient funds to repay its obligations to Investor or EBRD individually or collectively and would be forced to seek other sources of funds to satisfy these obligations. Given the Company's current and near-term anticipated operating results, the difficult credit and equity markets and the Company's current financial condition, the Company believes it would be very difficult to obtain new funding to satisfy these obligations. If the Company is unable to obtain funding to meet these obligations, Investor and or EBRD could seek any legal remedies available to them to obtain repayment, including forcing the Company into bankruptcy, or in the case of the EBRD loan, which is collateralized by the assets, including the marine base, and bank accounts of Balykshi and Caspian Real Estate, Ltd, foreclosure by EBRD on such assets and bank accounts. "The ability of the Company to continue as a going concern is dependent upon, among other things, its ability to successfully negotiate and conclude restructured financing agreements with EBRD and the Investor and its ability to generate sufficient revenue from operations, or to identify a financing source that will provide the Company the ability to satisfy its repayment and guarantee obligations under the restructured financing agreements. Uncertainty as to the outcome of these factors raises substantial doubt about the Company's ability to continue as a going concern," the Company said in its quarterly report for the period ended Dec. 31, 2012. CETERA FINANCIAL: S&P Raises Issuer Credit Rating to 'B+' --------------------------------------------------------- Standard & Poor's Ratings Services said that it raised its issuer credit and senior secured debt ratings on Cetera Financial Group to 'B+' from 'B' and removed the ratings from CreditWatch, where S&P placed them on July 30, 2013. The outlook is stable. "The upgrade reflects the material reduction in the amount of debt and dividend relative to the original amounts the company intended to issue in July 2013 when we assigned our 'B' rating," said Standard & Poor's credit analyst Olga Roman. Cetera has reduced its funded debt by $55 million to $210 million and reduced its dividend to $81 million. S&P believes that this change in the company's capital structure results in a strengthening of credit metrics to a level that is in line with 'B+' issuer credit rating. "The ratings on Cetera reflect the firm's aggressive financial management, including a still considerable debt burden and negative tangible equity, as well as integration risk as the result of several recent acquisitions. Although these acquisitions enabled Cetera to quickly gain scale and become one of the largest independent brokers, we view negatively its limited track record operating as an independent firm, rapid growth, and still relatively small size in the highly competitive U.S. brokerage business. We believe that favorable growth trends in the U.S. independent financial advisory industry and the firm's variable cost structure and limited balance sheet risk only partially offset these weaknesses," S&P added. S&P's rating on Cetera is two notches lower than the group credit profile ('bb'), reflecting the structural subordination between Cetera's operating subsidiaries and the debt-issuing non-operating holding company. S&P differentiates ratings at the operating company and holding company consistent with its general approach to analyzing non-operating holding companies. For securities firms, this relationship typically results in a lower rating on debt issued by holding companies to reflect the possibility that resources will be maintained at the operating company level to meet regulatory capital requirements or other liquidity guidelines. The holding company's ability to implement fiscal policy most favorable to it is limited, and this supports the notching. When the group credit profile is speculative grade (rated 'BB+' or lower), as in Cetera's case, S&P generally rates the non-operating holding company two notches lower that an implied operating company level rating. The stable outlook reflects S&P's expectation that Cetera will successfully complete the integration of its recent acquisitions. S&P also expects the company to continue to operate with minimal principal risk exposure and adequate liquidity. S&P could lower its ratings if Cetera's earnings or liquidity were to materially deteriorate or if debt to adjusted EBITDA were to increase above 4x. Additionally, S&P could lower its ratings if Cetera were to experience significant operational issues or civil litigation. As S&P do not anticipate material sustained improvement in Cetera's financial metrics, ratings upside potential is likely to be limited. CHINA TELETECH: Delays Form 10-Q for Second Quarter --------------------------------------------------- China Teletech Holding, Inc., was unable, without unreasonable effort or expense, to file its quarterly report on Form 10-Q for the quarter ended June 30, 2013, by the Aug. 14, 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 June 30, 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 March 31, 2013, showed $2.29 million in total assets, $2 million in total liabilities and $297,675 in total stockholders' equity. WWC, P.C., in San Mateo, California, issued a "going concern" qualification on the consolidated financial statements for the period ended March 31, 2013. The independent auditors noted that the Company has incurred substantial losses, and has difficulty to pay the PRC government Value Added Tax and past due Debenture Holders Settlement, all of which raise substantial doubt about its ability to continue as a going concern." CHRISTIAN BROTHERS: Deal with Abuse Claimants Pave Way for Plan --------------------------------------------------------------- The Christian Brothers' Institute and The Christian Brothers of Ireland, Inc., and the Official Committee of Unsecured Creditors have a plan made possible following an "allocation plan" negotiated with 75% of sexual abuse claimants. The Joint Chapter 11 Plan of Reorganization dated Aug. 22, 2013, has the Debtors and the Official Committee of Unsecured Creditors as co-proponents. According to the explanatory disclosure statement, holders of sexual abuse claims (Class 4) will have the option of being treated in one of two ways: (i) payment from the Trust utilizing the allocation plan or (ii) commencing or continuing litigation against the Debtors in a court of appropriate jurisdiction. Holders of Class 4 Claims must make an election of their treatment on their ballot. Absent any election, the holder will be paid in accordance with the allocation plan. Holders of allowed sexual abuse claims who elect the allocation plan alternative will be paid no less than $5,000. Holders of allowed fraud claims (Class 5) will receive $10,000 from the trust. Holders of allowed physical abuse claims (Class 6) will receive $500. Holders of Allowed General Unsecured Claims (Class 8) will receive their pro rata share of $50,000. Holders of allowed Penalty Claims (Class 9), and abuse related contingent contribution/reimbursement/indemnity claims (Class 10) will receive no distribution under the Plan. Classes 9 and 10 are impaired and deemed to reject the Plan. The Trust is a "qualified settlement fund" ("QSF") within the meaning Treasury Regulations enacted under Internal Revenue Code Section 486B(g). The cash required to fund the Trust, which will pay holders of Class 4, 5 and 6 Claims, will come from (i) $13.442 million of cash from the Debtors (ii) $3.2 million of cash from Providence Washington Insurance Co., (iii) sales of real property owned by the Debtors, (iv) the prosecution and settlement of lawsuits which are property of the Debtors' Estates, and (v) certain funds that may be received from Non-Settling Insurers and Participating Parties. The cash required to fund payments for Professional Fees and Classes 3 and 8 Claims will come from the Debtors and/or the Reorganized Debtors. A copy of the Joint Disclosure Statement is available at: http://bankrupt.com/misc/CBI.doc571.pdf About Christian Brothers' Institute The Christian Brothers' Institute in New Rochelle, New York, is a domestic not-for-profit 501(c)(3) corporation organized under Sec. 102(a)(5) of the New York Not-for-Profit Corporation Law. CBI was formed to establish, conduct and support Catholic elementary and secondary schools principally throughout New York State. The Christian Brothers of Ireland, Inc., in Chicago, Illinois, is a domestic not-for-profit 501(c)(3) corporation organized under the Not-for-Profit Corporation Law of the State of Illinois. CBOI was formed to establish, conduct and support Catholic elementary and secondary schools principally throughout the State of Illinois, as well as other spiritual and temporal affairs of the former Brother Rice Province of the Congregation of Christian Brothers. CBI and CBOI depend upon grants and donations to fund a portion of their operating expenses. The Christian Brothers' Institute and The Christian Brothers of Ireland filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case Nos. 11-22820 and 11-22821) on April 28, 2011. Scott S. Markowitz, Esq., at Tarter Krinsky & Drogin LLP, serves as the Debtors' bankruptcy counsel. The Christian Brothers' Institute disclosed assets of $63,418,267 and $8,484,853 in liabilities. CBOI discloses assets of $1,091,084 and liabilities of $3,622,500. Attorneys at Pachulski Stang Ziehl & Jones LLP, in Los Angeles, Calif., and New York, N.Y., represent the Official Committee of Unsecured Creditors as counsel. Paul A. Richler, Esq., of Pacific Palisades, Calif., serves as Special Insurance Counsel to the Official Committee of Unsecured Creditors. COATES INTERNATIONAL: Incurs $1.2 Million Net Loss in 2nd Qtr. -------------------------------------------------------------- Coates International, Ltd., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.17 million on $4,800 of sublicensing fee revenue for the three months ended June 30, 2013, as compared with a net loss of $1.48 million on $4,800 of sublicensing fee revenue for the same period last year. For the six months ended June 30, 2013, the Company reported a net loss of $1.98 million on $9,600 of sublicensing fee revenue, as compared with a net loss of $2.88 million on $9,600 of sublicensing fee revenue for the same period during the prior year. The Company's balance sheet at June 30, 2013, showed $2.39 million in total assets, $5.57 million in total liabilities and a $3.17 million total stockholders' deficiency. 10-Q Filing Delayed Late in the afternoon of Aug. 14, 2013, the Company agreed on the terms of a settlement with Mark D. Goldsmith, a former executive of the Company who had filed a lawsuit against the Company for breach of an employment contract. The final settlement agreement has not yet been executed. According to the main provisions of the settlement, the Company has agreed to pay the plaintiff $125,000 in five installments over the period beginning Nov. 15, 2013, and ending on Feb. 15, 2015. The parties will execute mutual releases. The Company has previously accrued $96,000 in connection with this litigation. Due to the lateness of this subsequent event which is required to be disclosed in the Company's Form 10-Q for the quarter ended June 30, 2013, the Company said it was not feasible to ensure that its internal controls over financial reporting can be complied with, given that this development became known less than two hours prior to the filing deadline. A copy of the Form 10-Q is available for free at: http://is.gd/4fDjaE About Coates International Based in Wall Township, N.J., Coates International, Ltd. (OTC BB: COTE) -- http://www.coatesengine.com/-- was incorporated on August 31, 1988, for the purpose of researching, patenting and manufacturing technology associated with a spherical rotary valve system for internal combustion engines. This technology was developed over a period of 15 years by Mr. George J. Coates, who is the President and Chairman of the Board of the Company. The Coates Spherical Rotary Valve System (CSRV) represents a revolutionary departure from the conventional poppet valve. It changes the means of delivering the air and fuel mixture to the firing chamber of an internal combustion engine and of expelling the exhaust produced when the mixture ignites. Coates International disclosed a net loss of $4.53 million on $0 of sales for the year ended Dec. 31, 2012, as compared with a net loss of $2.99 million on $125,000 of sales for the year ended Dec. 31, 2011. Cowan, Gunteski & Co., P.A., in Tinton Falls, New Jersey, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012, citing negative cash flows from operations, recurring losses from operations, and a stockholders' deficiency that raise substantial doubt about the Company's ability to continue as a going concern. COMSTOCK RESOURCES: Moody's Affirms 'B2' Corp. Family Rating ------------------------------------------------------------ Moody's Investors Service raised Comstock Resources, Inc.'s Speculative Grade Liquidity Rating to SGL-2 from SGL-3. Moody's also affirmed Comstock's B2 Corporate Family Rating and the B3 rating on the company's senior unsecured notes. The outlook is stable. Upgrades: Issuer: Comstock Resources, Inc. Speculative Grade Liquidity Rating, Upgraded to SGL-2 from SGL-3 Outlook Actions: Issuer: Comstock Resources, Inc. Outlook, Remains Stable Affirmations: Issuer: Comstock Resources, Inc. Probability of Default Rating, Affirmed B2-PD Corporate Family Rating, Affirmed B2 Senior Unsecured Regular Bond/Debenture Oct 15, 2017, Affirmed B3, Upgraded to a range of LGD4, 67 % from a range of LGD5, 71 % Senior Unsecured Regular Bond/Debenture Apr 1, 2019, Affirmed B3, Upgraded to a range of LGD4, 67 % from a range of LGD5, 71% Senior Unsecured Regular Bond/Debenture Jun 15, 2020, Affirmed B3, Upgraded to a range of LGD4, 67 % from a range of LGD5, 71% Ratings Rationale: Comstock's SGL-2 rating reflects good liquidity through 2014. Following the Permian asset sale in May, Comstock had full available under its $500 million credit facility and $264 million of cash. The credit facility has a $500 million borrowing base, which is subject to semi-annual redeterminations based on the value of proved reserves. Financial covenants under the credit facility include a current ratio of at least 1.0x (undrawn credit facility availability is included in the calculation of current assets) and debt / EBITDAX of less than 4.25x. At June 30, 2013 the company's current ratio was close to 7x and debt/EBITDAX modestly above 2.5x. There are no debt maturities prior to 2015 when the credit facility matures. Although the majority of Comstock's assets are pledged as security under the credit facility, the company has the ability to raise additional liquidity through limited asset sales. The divestiture of its West Texas Permian Basin properties, which closed in May for $824 million, allowed Comstock to pay off the borrowings under its revolving credit facility and improve its liquidity. The sale of current production and proved developed (PD) reserves associated with the divestiture was not significant enough to completely offset an improvement in its leverage on production and PD reserves. With the remaining proceeds from the divestiture of its Permian properties, Comstock will be able fund and maintain adequate liquidity while it accelerates the drilling and development of its Eagle Ford assets. The B2 CFR reflects the company's high proportion of natural gas production in a low gas price environment, its relatively early stage operations in the Eagle Ford play where the majority of capital spending will be focused, and the significant amount of capital needed to fund its transition to becoming a more oil- focused E&P company. The weak leveraged-full cycle ratio (LFCR), which captures how efficient the company is using its capital, restrains the rating. The rating is supported by the company's increasing liquids production and lower cost structure that should yield better cash margins and improved leverage metrics. The B3 note rating reflects both the overall probability of default of Comstock, to which Moody's assigns a PDR of B2-PD, and a loss given default of LGD4-67%. The size of the senior secured revolver's priority claim relative to the senior unsecured notes results in the notes being rated one notch beneath the B2 CFR under Moody's Loss Given Default Methodology. Moody's could upgrade the CFR if it expects the company's leveraged full cycle ratio (LFCR) to be maintained at or above 1.5x with RCF/debt of at least 40%. Conversely, a negative rating action could result if liquidity deteriorates, if returns do not continue to benefit from increasing liquids production, or if Moody's expects RCF/debt to be maintained below 25%. The principal methodology used in this rating was the Global Independent Exploration and Production Industry Methodology 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. Comstock Resources, Inc. is an independent exploration and production company headquartered in Frisco, Texas. COOPER-BOOTH: Aug. 28 Hearing on Exclusivity Extension ------------------------------------------------------ The U.S. Bankruptcy Court for the Eastern District of Pennsylvania will convene a hearing on Aug. 28, 2013, at 11 a.m., to consider Cooper-Booth Wholesale Co., et al.'s motion for extension of their exclusivity periods. As reported in the Troubled Company Reporter on Aug. 13, 2013, the Debtors sought to keep exclusive control over their Chapter 11 case for another 120 days as they continue to negotiate the terms of a Chapter 11 restructuring plan with creditors. At the hearing, the Court will also consider the Debtors' motion to extend time to assume, assign or reject unexpired lease of non- residential real property. About Cooper-Booth Wholesale Company, L.P. Cooper-Booth Wholesale Company, L.P. and two affiliates sought Chapter 11 protection (Bankr. E.D. Pa. Lead Case No. 13-14519) in Philadelphia on May 21, 2013, after the U.S. government seized the Company's bank accounts to recover payments made by a large customer caught smuggling Virginia-stamped cigarettes into New York. Serving the mid-Atlantic region, Cooper is one of the top 20 convenience store wholesalers in the country. Cooper supplies cigarettes, snacks, beverages and other food items from Hershey's, Lellogg's, Bic, and Mars to convenience stores. Cooper has been in the wholesale distribution business since 1865 when the Booth Tobacco Company was incorporated in Lancaster, Pennsylvania. The Company has been family owned and operated for three generations. Aris J. Karalis, Esq., and Robert W. Seitzer, Esq., at Maschmeyer Karalis, P.C., in Philadelphia, serve as the Debtors' bankruptcy counsel. Executive Sounding Board Associates, Inc., is the financial advisor. SSG Advisors, LLC, serves as investment bankers. Blank Rome LLP represents the Debtor in negotiations with federal agencies concerning the seizure warrant. Roberta A. DeAngelis, the U.S. Trustee for Region 3, appointed three members to the Official Unsecured Creditors' Committee in the Chapter 11 case. Cooper Booth disclosed $58,216,784 in assets and $35,054,482 in liabilities as of the Chapter 11 filing. As of the Petition Date, the Debtors' total consolidated funded senior debt obligations were approximately $10.7 million and consisted of, among other things, $7.72 million owing on a revolving line of credit facility, $2.83 million owing on a line of credit for the purchase of equipment, and $166,000 due on a corporate VISA Card. PNC Bank asserts that a letter of credit facility is secured by all personal property owned by Wholesale. Unsecured trade payables totaled $22.8 million as of May 21, 2013. COOPER-BOOTH: Wants Lease Decision Period Extended Until Jan. 16 ---------------------------------------------------------------- Cooper-Booth Wholesale Company, L.P., et al., ask the U.S. Bankruptcy Court for the Eastern District of Pennsylvania to extend until Jan. 16, 2014, their period to assume, assign or reject their unexpired non-residential real property leases. Bardon Development, L.L.P., as their landlord, has consented to the extension. About Cooper-Booth Wholesale Company, L.P. Cooper-Booth Wholesale Company, L.P. and two affiliates sought Chapter 11 protection (Bankr. E.D. Pa. Lead Case No. 13-14519) in Philadelphia on May 21, 2013, after the U.S. government seized the Company's bank accounts to recover payments made by a large customer caught smuggling Virginia-stamped cigarettes into New York. Serving the mid-Atlantic region, Cooper is one of the top 20 convenience store wholesalers in the country. Cooper supplies cigarettes, snacks, beverages and other food items from Hershey's, Lellogg's, Bic, and Mars to convenience stores. Cooper has been in the wholesale distribution business since 1865 when the Booth Tobacco Company was incorporated in Lancaster, Pennsylvania. The Company has been family owned and operated for three generations. Aris J. Karalis, Esq., and Robert W. Seitzer, Esq., at Maschmeyer Karalis, P.C., in Philadelphia, serve as the Debtors' bankruptcy counsel. Executive Sounding Board Associates, Inc., is the financial advisor. SSG Advisors, LLC, serves as investment bankers. Blank Rome LLP represents the Debtor in negotiations with federal agencies concerning the seizure warrant. Roberta A. DeAngelis, the U.S. Trustee for Region 3, appointed three members to the Official Unsecured Creditors' Committee in the Chapter 11 case. Cooper Booth disclosed $58,216,784 in assets and $35,054,482 in liabilities as of the Chapter 11 filing. As of the Petition Date, the Debtors' total consolidated funded senior debt obligations were approximately $10.7 million and consisted of, among other things, $7.72 million owing on a revolving line of credit facility, $2.83 million owing on a line of credit for the purchase of equipment, and $166,000 due on a corporate VISA Card. PNC Bank asserts that a letter of credit facility is secured by all personal property owned by Wholesale. Unsecured trade payables totaled $22.8 million as of May 21, 2013. COUDERT BROTHERS: Dechert Can't Avoid Suit Over Paris Takeover -------------------------------------------------------------- Law360 reported that Dechert LLP must face allegations that it underpaid for defunct, bankrupt law firm Coudert Brothers LLP's Paris office in 2005, a New York federal judge ruled on Aug. 22, saying it was too soon to decide the value of employment liabilities and other issues. According to the report, U.S. District Judge Colleen McMahon said it wasn't clear under federal, New York or French law if employment-related costs such as severance payments that Dechert absorbed could be used to offset the value of the rest of Coudert's French affiliate, Coudert Freres. The case is Development Specialists, Inc. v. Dechert LLP, Case No. 1:11-cv-05984 (S.D.N.Y.) before Judge Colleen McMahon. About Coudert Brothers Coudert Brothers LLP was an international law firm specializing in complex cross-border transactions and dispute resolution. The firm had operations in Australia and China. Coudert filed for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 06-12226) on Sept. 22, 2006. John E. Jureller, Jr., Esq., and Tracy L. Klestadt, Esq., at Klestadt & Winters, LLP, represented the Debtor in its restructuring efforts. Brian F. Moore, Esq., and David J. Adler, Esq., at McCarter & English, LLP, represented the Official Committee of Unsecured Creditors. Coudert scheduled total assets of $30.0 million and total debts of $18.3 million as of the Petition Date. The Bankruptcy Court in August 2008 signed an order confirming Coudert's chapter 11 plan. The Plan contemplated on paying 39% to unsecured creditors with $26 million in claims. Coudert has been succeeded by Development Specialists, Inc. in its capacity as Plan Administrator under the confirmed chapter 11 plan. DATAJACK INC: Delays Form 10-Q for Second Quarter ------------------------------------------------- DataJack, Inc., said it has been unable to complete its financial statements for the quarter ended June 30, 2013, by Aug. 14, 2013. As a result, the Company was unable to file its quarterly report on Form 10-Q for that period. DataJack, Inc. (formerly Quamtel, Inc.) and its subsidiaries was incorporated in 1999 under the laws of Nevada as a communications company offering, a comprehensive range of mobile broadband and communications products. The Company offers secure nationwide mobile broadband wireless data transmission services primarily under the DataJack brand. Through DataJack, the Company offers low cost, no contract, mobile broadband with various data plans. The Company's DataJack service is offered primarily through two devices - the DataJack WiFi Mobile Hotspot that can connect up to 5 Wi-Fi enabled devices and the DataJack USB, a Plug and Play USB Device. In its report on the 2011 financial statements, RBSM LLP, in New York, New York, expressed substantial doubt about Quamtel's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant operating losses in the current year and also in the past. The Company reported a net loss of $4.49 million on $1.93 million of revenues for 2011, compared with a net loss of $10.05 million on $2.18 million of revenues for 2010. The Company's balance sheet at March 31, 2013, showed $1.90 million in total assets, $4.77 million in total liabilities and a $2.87 million total shareholders' deficit. DELPHI AUTOMOTIVE: Shares On a Roll Following Bankruptcy Exit ------------------------------------------------------------- Lawrence C. Strauss, writing for Daily Bankruptcy Review, reported that Bill Nygren, the veteran value manager, had high hopes for Delphi Automotive when he spoke to Barron's nearly a year ago. The auto-component maker had emerged from bankruptcy protection in 2009. The co-manager of the Oakmark Fund asserted that the stock, then $31, could get to $50 within the two years, the report said. About Delphi Corp. Based in Troy, Michigan, Delphi Corporation -- http://www.delphi.com/-- is a global supplier of electronics and technologies for automotive, commercial vehicle and other market segments. Delphi operates major technical centers, manufacturing sites and customer support facilities in 30 countries. The Company filed for Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 05-44481) on Oct. 8, 2005. John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represented the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represented the Official Committee of Unsecured Creditors. As of June 30, 2008, the Debtors' balance sheet showed US$9,162,000,000 in total assets and US$23,742,000,000 in total debts. The Court confirmed Delphi's plan on Jan. 25, 2008. The Plan was not consummated after a group led by Appaloosa Management, L.P., backed out from their proposal to provide US$2,550,000,000 in equity financing to Delphi. At the end of July 2009, Delphi obtained confirmation of a revised plan, build upon a sale of the assets to a entity formed by some of the lenders who provided $4 billion of debtor-in-possession financing, and General Motors Company. On Oct. 6, 2009, Delphi's Chapter 11 plan of reorganization became effective. A Master Disposition Agreement executed among Delphi Corporation, Motors Liquidation Company, General Motors Company, GM Components Holdings LLC, and DIP Holdco 3, LLC, divides Delphi's business among three separate parties -- DPH Holdings LLC, GM Components, and DIP Holdco 3. Delphi emerged from Chapter 11 as DPH Holdings. DPH Holdings is responsible for the post-Effective Date administration and eventual closing of the Chapter 11 cases as well as the disposition of certain retained assets and payment of certain retained liabilities as provided under the Modified Plan. Delphi Automotive PLC is UK-based company formed in May 2011 as a holding company for US-based automotive parts manufacturer Delphi Automotive LLP. Delphi Automotive LLP is the successor to the former Delphi Corporation. At the time of its formation, Delphi Automotive PLC filed an initial public offering seeking to raise at least $100 million. DETROIT, MI: Bankruptcy Court Rebukes Mediator Ethics Debate ------------------------------------------------------------ Law360 reported that the Detroit court overseeing the city's historic bankruptcy defended its decision to appoint litigator Eugene Driker to mediate the case even though the city is his former client, saying its mediators follow a different code of ethics than the model rules adopted by the American Bar Association. In a Law360 article published on Aug. 22, mediation experts said that Driker's involvement in the largest municipal bankruptcy in American history might violate the Model Standards of Conduct for Mediators, adopted by the American Bar Association. A declaration by Eastern District of Michigan Chief Judge Gerald Rosen thoroughly details the credentials of the five mediators he picked to officiate negotiations in the largest municipal bankruptcy in American history. The declaration omits, however, that the city is a former client of mediator Eugene Driker, the report related. About Detroit, Michigan The city of Detroit, Michigan, weighed down by more than $18 billion in accrued obligations, sought municipal bankruptcy protection on July 18, 2013, by filing a voluntary Chapter 9 petition (Bankr. E.D. Mich. Case No. 13-53846). Detroit listed more than $1 billion in both assets and debts. Kevyn Orr, who was appointed in March 2013 as Detroit's emergency manager, signed the petition. Detroit is represented by lawyers at Jones Day and Miller Canfield Paddock and Stone PLC. Michigan Governor Rick Snyder authorized the bankruptcy filing. The filing makes Detroit the largest American city to seek bankruptcy, in terms of population and the size of the debts and liabilities involved. The city's $18 billion in debt includes $5.85 billion in special revenue obligations, $6.4 billion in post-employment benefits, $3.5 billion for underfunded pensions, $1.13 billion on secured and unsecured general obligations, and $1.43 billion on pension- related debt, according to a court filing. Debt service consumes 42.5 percent of revenue. The city has 100,000 creditors and 20,000 retirees. Detroit is represented by David G. Heiman, Esq., and Heather Lennox, Esq., at Jones Day, in Cleveland, Ohio; Bruce Bennett, Esq., at Jones Day, in Los Angeles, California; and Jonathan S. Green, Esq., and Stephen S. LaPlante, Esq., at Miller Canfield Paddock and Stone PLC, in Detroit, Michigan. Sharon Levine, Esq., at Lowenstein Sandler LLP, is representing the American Federation of State, County and Municipal Employees and the International Union. Babette Ceccotti, Esq., at Cohen, Weiss & Simon LLP, is representing the United Automobile, Aerospace and Agricultural Implement Workers of America. DEWEY STRIP: Gets Court Nod to Hire Neal Wolf as Lead Counsel ------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware gave Dewey Strip Holdings, LLC, et al., authority to employ Neal Wolf & Associates, LLC, as their restructuring and bankruptcy counsel, effective as of the Petition Date. NW&A will be providing general legal services to, and advising the Debtors of their rights, powers, and duties as debtors-in- possession. As reported in the July 26, 2013 edition of The Troubled Company Reporter, NW&A and the Debtors agreed on an aggregate "flat fee" of $350,000, for work done prepetition and postpetition, for the prosecution to completion of both Chapter 11 cases. The initial $250,000 was provided to the firm by International Power Syndications, Ltd., an affiliate and sole member of each of the Debtors, in February 2012. The remaining $100,000 is to be paid by IPS at the conclusion of the Chapter 11 cases. The fee agreement is not in any way tied to, or contingent upon, the results obtained in the Chapter 11 cases, according to the Debtors. Neal L. Wolf, Esq., Mohsin N. Khambati, Esq., John A. Benson, Jr., Esq., Michael R. Wanser, Esq. and Sandy Holstrom, Esq. are the Neal Wolf professionals expected to render services to the Debtors. Their hourly rates range from $695 to $175. About Dewey Strip Las Vegas, Nevada-based Dewey Strip Holdings LLC and Las Vegas North Strip Holdings Syndications Group LLC sought Chapter 11 protection (Bankr. D. Del. Case Nos. 13-11479 and 13-11480) on June 7, 2013, in Delaware, without stating a reason. Each debtor, a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101(51B), estimated at least $10 million in assets and at least $100 million in liabilities. In its schedules, Dewey Strip Holdings disclosed $35,000,000 and $243,573,461 in liabilities as of the Petition Date. The petitions were signed by Martin H. Walrath, IV, vice-president of International Property Syndications, Ltd., as manager and sole member. DEWEY STRIP: Can Tap Womble Carlyle as Delaware Co-counsel ---------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware granted Dewey Strip Holdings, LLC, et al., authority to hire Womble Carlyle Sandridge & Rice, LLP, as Delaware co-counsel, nunc pro tunc to the Petition Date. In general, Womble Carlyle will provide to the Debtors legal services in relation to their bankruptcy proceedings. Steven K. Kortanek, Esq., Thomas M. Horan, Esq., and Ericka F. Johnson, Esq. of the Womble Carlyle firm will render the contemplated services to the Debtors. About Dewey Strip Las Vegas, Nevada-based Dewey Strip Holdings LLC and Las Vegas North Strip Holdings Syndications Group LLC sought Chapter 11 protection (Bankr. D. Del. Case Nos. 13-11479 and 13-11480) on June 7, 2013, in Delaware, without stating a reason. Each debtor, a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101(51B), estimated at least $10 million in assets and at least $100 million in liabilities. In its schedules, Dewey Strip Holdings disclosed $35,000,000 and $243,573,461 in liabilities as of the Petition Date. The petitions were signed by Martin H. Walrath, IV, vice-president of International Property Syndications, Ltd., as manager and sole member. EASTERN HILLS: Richard W. Ward Approved as Counsel -------------------------------------------------- The Bankruptcy Court authorized The Eastern Hills Country Club to employ Richard W. Ward, Esq., as counsel. As reported in the Troubled Company Reporter on July 4, 2013, the Debtor sought to employ Mr. Ward under a general retainer in accordance with Mr. Ward's normal hourly rate of $350 per hour and with reimbursement of all expenses incurred by Mr. Ward. Mr. Ward attested he is "disinterested" and does not represent any interest that is materially adverse to the interests of the bankruptcy estate of the Debtor. Mr. Ward discloses that David Harvey, the Debtor's president, is also the principal of a company known as Iron Horse Specialty Supply. Mr. Ward represented Iron Horse in defending an adversary proceeding asserting avoidance of preferential transfers in the bankruptcy case of Alamo Iron Works, et al., Case No. 10-51269. Iron Horse does not have any interest in or claim against EHCC. About Eastern Hills Eastern Hills Country Club filed a bare-bones Chapter 11 petition (Bankr. N.D. Tex. Case No. 13-33123) in Dallas on June 21, 2013. The Debtor estimated at least $10 million in assets and less than $1 million in liabilities. The petition was signed by David Harvey as president. Judge Stacey G. Jernigan presides over the case. Richard W. Ward, Esq., serves as the Debtor's counsel. According to Web site, http://www.easternhillscc.com,the Eastern Hills Country Club in Garland Texas, was established in 1954 and boasts a Ralph Plummer designed 18-hole golf course, 5,000 sq. foot putting green, practice facility, and driving range. The golf course has been home of the Texas Womens Open since 2011. The Department of the Treasury, Internal Revenue Service, the State of Texas and VGM Financial Services, 1111 W. San Marnan, Waterloo, IA 50701 assert interest on inventory, accounts receivable and proceeds. EASTMAN KODAK: S&P Assigns Prelim. 'B-' CCR; Outlook Stable ----------------------------------------------------------- Standard & Poor's Ratings Services assigned Rochester, NY-based Eastman Kodak Co. a 'B-' preliminary corporate credit rating. The outlook is stable. At the same time, S&P assigned the proposed $420 million first- lien term loan a 'B-' preliminary issue-level rating, with a preliminary recovery rating of '3', indicating its expectation for meaningful (50% to 70%) recovery of principal in the event of a payment default. In addition, S&P assigned the proposed $275 million second-lien term loan a preliminary 'CCC' issue-level rating, with a preliminary recovery rating of '6', indicating S&P's expectation for negligible (0% to 10%) recovery of principal in the event of a payment default. S&P expects to assign the reorganized company its 'B-' corporate credit rating with a stable outlook upon its emergence from bankruptcy protection. The company has indicated that it expects to emerge from bankruptcy in early September 2013. The preliminary issue-level ratings and expected 'B-' corporate credit rating are subject to Kodak's timely emergence from bankruptcy and consummation of its plan of reorganization in keeping with S&P's expectations, including its proposed exit financing. The rating reflects the U.S. Bankruptcy Court for the Southern District of New York's recent confirmation of the company's plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code. Standard & Poor's ratings on Kodak reflect S&P's assessment of the company's "vulnerable" business risk profile and "highly leveraged" financial risk profile. S&P's assessment of Kodak's vulnerable business risk profile reflects its small share of a large, mature global market in commercial printing, facing secular decline in demand and significantly larger competitors with greater resources. S&P's base-case forecast assumptions include: -- Mid-single-digit revenue decreases, as declining end-of-life segments outweigh new product growth in the near term. -- Cost reductions and restructurings will enable Kodak to sustain pro forma post-emergence adjusted annual EBITDA of about $160 million in the near term. -- Preservation of adequate liquidity, including substantial offshore cash balances. Kodak will be focused on commercial printing, packaging and imaging solutions, and related enterprise services. S&P expects Kodak's improved business focus and a base of revenues that are more recurring in nature will provide some revenue stability while the company invests in its growth segments. However, S&P believes the company will be challenged over the next 12 to 24 months to replace a material earnings stream from end-of-life commercial film and consumer inkjet segments. S&P has assessed Kodak's management and governance as "fair," incorporating management's ability to convert its strategic decisions into constructive action following the company's January 2012 filing for Chapter 11 bankruptcy protection. ECO BUILDING: Amended Q2 Form 10-Q Shows $2.2 Million Net Loss -------------------------------------------------------------- Eco Building Products, Inc., has amended its quarterly report on Form 10-Q for the period ended March 31, 2013. The Company's restated statements of operations reflect a net loss of $2.21 million on $1.71 million of total revenue for the three months ended March 31, 2013, as compared with a net loss of $1.19 million on $1.71 million of total revenue as originally reported. The Company's restated balance sheeet at March 31, 2013, showed $3.19 million in total assets, $11.80 million in total liabilities and a $8.61 million total stockholders' deficit. The Company previously reported $3.19 million in total assets, $11.85 million in total liabilities and a $8.66 million total stockholders' deficit. A copy of the Amended Form 10-Q is available for free at: http://is.gd/sbIA3z About Eco Building Vista, Calif.-based Eco Building Products is a manufacturer of proprietary wood products treated with an eco-friendly proprietary chemistry that protects against mold, rot, decay, termites and fire. Sam Kan & Company, in Alameda, Calif., expressed substantial doubt about Eco's ability to continue as a going concern following the fiscal 2012 financial results. The independent auditors noted that the Company has generated minimal operating revenues, losses from operations, significant cash used in operating activities and its viability is dependent upon its ability to obtain future financing and successful operations. EDENOR SA: Buenos Aires Stock Exchange Revokes Suspension --------------------------------------------------------- Empresa Distribuidora y Comercializadora Norte S.A. ("EDENOR") disclosed in a letter filed with the U.S. Securities and Exchange Commission that on Aug. 12, 2013, that the Buenos Aires Stock Exchange had resolved on Friday, Aug. 9, 2013, to temporarily suspend the listing of the Company's securities. Subsequently, on that same date, the Buenos Aires Stock Exchange revoked thta listing suspension of the Company's securities. The Buenos Aires Stock Exchange decided to suspend and to revoke the suspension of listing of the Company's securities in light of the information submitted by EDENOR in accordance with Article 63 of the Buenos Aires Stock Exchange Trading Rules, which showed that, as of June 30, 2013, the Company no longer had a negative shareholders' equity, as was the case as of the end of the first quarter of 2013. The negative shareholders' equity that the Company had as of March 31, 2013, was widely disclosed. About Edenor SA Headquartered in Buenos Aires, Argentina, Edenor S.A. (NYSE: EDN; Buenos Aires Stock Exchange: EDN) is the largest electricity distribution company in Argentina in terms of number of customers and electricity sold (both in GWh and Pesos). Through a concession, Edenor distributes electricity exclusively to the northwestern zone of the greater Buenos Aires metropolitan area and the northern part of the city of Buenos Aires. Edenor S.A. disclosed a loss of ARS1.01 billion on ARS3.72 billion of revenue from sales for the year ended Dec. 31, 2012, as compared with a net loss of ARS291.38 million on ARS2.80 billion of revenue from sales for the year ended Dec. 31, 2011. The Company's balance sheet at Dec. 31, 2012, showed ARS6.80 billion in total assets, ARS6.31 billion in total liabilities and ARS489.28 million in total equity. "Given the fact that the realization of the projected measures to revert the manifested negative trend depends, among other factors, on the occurrence of certain events that are not under the Company's control, such as the requested electricity rate increases or their replacement by a new remuneration system, the Board of Directors has raised substantial doubt about the ability of the Company to continue as a going concern in the term of the next fiscal year," according to the Company's annual report for the year ended Dec. 31, 2012. EMPIRE RESORTS: Option to Lease EPT Property Extended to Aug. 23 ---------------------------------------------------------------- The option agreement by and between Monticello Raceway Management, Inc., a wholly-owned subsidiary of Empire Resorts, Inc., and EPT Concord II, LLC, originally entered into on Dec. 21, 2011, was further amended by a letter agreement between the Parties, dated Aug. 14, 2013. Pursuant to the Option Agreement, EPT granted MRMI a sole and exclusive option to lease certain EPT property located in Sullivan County, New York, pursuant to the terms of a lease negotiated between the parties. Pursuant to the Letter Agreement, MRMI and EPT agreed to extend the option exercise period and the final option exercise outside date (as such terms are defined in the Option Agreement) from Aug. 14, 2013 to Aug. 23, 2013. Except for these amendments, the Option Agreement remains unchanged and in full force and effect. A copy of the Letter Agreement is available for free at: http://is.gd/aeGfV4 About Empire Resorts Based in Monticello, New York, Empire Resorts, Inc. (NASDAQ: NYNY) -- http://www.empireresorts.com/-- owns and operates Monticello Casino & Raceway, a video gaming machine and harness racing track and casino located in Monticello, New York, 90 miles northwest of New York City. Empire Resorts reported a net loss applicable to common shares of $2.26 million in 2012, as compared with a net loss applicable to common shares of $1.57 million in 2011. The Company's balance sheet at March 31, 2013, showed $52.58 million in total assets, $28.14 million in total liabilities and $24.44 million in total stockholders' equity. ENERGYSOLUTIONS INC: Incurs $57.2 Million Net Loss in 2nd Quarter ----------------------------------------------------------------- EnergySolutions, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $57.23 million on $411.03 million of revenue for the three months ended June 30, 2013, as compared with net income of $5.40 million on $392.62 million of revenue for the same period a year ago. For the six months ended June 30, 2013, the Company reported a net loss of $65.43 million on $937.24 million of revenue, as compared with net income of $4.74 million on $883.31 million of revenue for the same period during the prior year. The Company's balance sheet at June 30, 2013, showed $2.44 billion in total assets, $2.21 billion in total liabilities and $233.08 million in total equity. A copy of the Form 10-Q is available for free at: http://is.gd/qFamlV About EnergySolutions Salt Lake City, Utah-based EnergySolutions offers customers a full range of integrated services and solutions, including nuclear operations, characterization, decommissioning, decontamination, site closure, transportation, nuclear materials management, the safe, secure disposition of nuclear waste, and research and engineering services across the fuel cycle. EnergySolutions reported net income of $3.92 million in 2012, as compared with a net loss of $193.64 million in 2011. Bankruptcy Warning "Our senior secured credit facility contains financial covenants requiring us to maintain specified maximum leverage and minimum cash interest coverage ratios. The results of our future operations may not allow us to meet these covenants, or may require that we take action to reduce our debt or to act in a manner contrary to our business objectives. "Our failure to comply with obligations under our senior secured credit facility, including satisfaction of the financial ratios, would result in an event of default under the facilities. A default, if not cured or waived, would prohibit us from obtaining further loans under our senior secured credit facility and permit the lenders thereunder to accelerate payment of their loans and not renew the letters of credit which support our bonding obligations. If we are not current in our bonding obligations, we may be in breach of our contracts with our customers, which generally require bonding. In addition, we would be unable to bid or be awarded new contracts that required bonding. If our debt is accelerated, we currently would not have funds available to pay the accelerated debt and may not have the ability to refinance the accelerated debt on terms favorable to us or at all particularly in light of the tightening of lending standards as a result of the ongoing financial crisis. If we could not repay or refinance the accelerated debt, we would be insolvent and could seek to file for bankruptcy protection. Any such default, acceleration or insolvency would likely have a material adverse effect on the market value of our common stock," the Company said in its annual report for the year ended Dec. 31, 2012. * * * As reported in the Jan. 9, 2013 edition of the TCR, Standard & Poor's Ratings Services placed its ratings, including its 'B' corporate credit rating, on EnergySolutions on CreditWatch with developing implications. "The CreditWatch placement follows EnergySolutions' announcement that it has entered into a definitive agreement to be acquired by a subsidiary of Energy Capital Partners II," said Standard & Poor's credit analyst Jim Siahaan. EnergySolutions is permitted to engage in discussions with other suitors, which may include other financial sponsors or strategic buyers. ERF WIRELESS: Delays Form 10-Q for Second Quarter ------------------------------------------------- ERF Wireless, Inc., was unable to file its quarterly report on Form 10-Q for the period ended June 30, 2013, within the prescribed time period because this filing requires additional time to complete and incorporate in the Form 10-Q. The Company said the Form 10-Q will be filed within the permitted extension time period. About ERF Wireless Based in League City, Texas, ERF Wireless, Inc., provides secure, high-capacity wireless products and services to a broad spectrum of customers in primarily underserved, rural and suburban parts of the United States. The Company incurred a consolidated net loss of $3.75 million for the nine months ended Sept. 30, 2012, as compared with a consolidated net loss of $2.32 million for the same period a year ago. The Company's balance sheet at March 31, 2013, showed $5.93 million in total assets, $8.61 million in total liabilities and a $2.68 million total shareholders' deficit. ESP RESOURCES: Delays Form 10-Q for Second Quarter -------------------------------------------------- ESP Resources, Inc.'s quarterly report for the period ended June 30, 2013, was not filed within the prescribed time period due to unanticipated delays in the preparation of the Company's financial reports, including the resignation of the Company's Chief Financial Officer, Robert Geiges, on May 15, 2013. The delay could not have been avoided without undue hardship or expense to the Company. The Woodlands, Texas-based ESP Resources, Inc., through its subsidiaries, manufactures, blends, distributes and markets specialty chemicals and analytical services to the oil and gas industry and also provides services for the upstream, midstream and downstream sectors of the energy industry, including new construction, major modifications to operational support for onshore and offshore production, gathering, refining facilities and pipelines designed to optimize performance and increase operators' return on investment. The Company reported a net loss of $5.08 million on $18.09 million of sales in 2012, compared with a net loss of $4.33 million on $11.13 million of sales in 2011. The Company's balance sheet at March 31, 2013, showed $8.40 million in total assets, $9.56 million in total liabilities and a $1.15 million total stockholders' deficit. EPAZZ INC: Delays Form 10-Q for Second Quarter ---------------------------------------------- Epazz Inc. was unable to complete its quarterly report on Form 10- Q for the quarter ended June 30, 2013, within the prescribed time because of delays in completing the preparation of its financial statements and its management discussion and analysis. Therefore, the Company requires additional time in order to prepare and file its Form 10-Q. About EPAZZ Inc. Chicago, Ill.-based EPAZZ, Inc., was incorporated in the State of Illinois on March 23, 2000, to create software to help college students organize their college information and resources. The idea behind the Company was that if the information and resources provided by colleges and universities was better organized and targeted toward each individual, the students would encounter a personal experience with the college or university that could lead to a lifetime relationship with the institution. This concept is already used by business software designed to retain relationships with clients, employees, vendors and partners. Epazz incurred a net loss of $1.90 million on $1.19 million of revenue for the year ended Dec. 31, 2012, as compared with a net loss of $336,862 on $735,972 of revenue for the year ended Dec. 31, 2011. M&K CPAS, PLLC, in Houston, Texas, 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 an accumulated deficit of $(4,114,756) and a working capital deficit of $(681,561), which raises substantial doubt about its ability to continue as a going concern. Bankruptcy Warning "We cannot be certain that any such financing will be available on acceptable terms, or at all, and our failure to raise capital when needed could limit our ability to continue and expand our business. We intend to overcome the circumstances that impact our ability to remain a going concern through a combination of the commencement of additional revenues, of which there can be no assurance, with interim cash flow deficiencies being addressed through additional equity and debt financing. Our ability to obtain additional funding for the remainder of the 2012 year and thereafter will determine our ability to continue as a going concern. There can be no assurances that these plans for additional financing will be successful. Failure to secure additional financing in a timely manner to repay our obligations and supply us sufficient funds to continue our business operations and on favorable terms if and when needed in the future could have a material adverse effect on our financial performance, results of operations and stock price and require us to implement cost reduction initiatives and curtail operations. Furthermore, additional equity financing may be dilutive to the holders of our common stock, and debt financing, if available, may involve restrictive covenants, and strategic relationships, if necessary to raise additional funds, and may require that we relinquish valuable rights. In the event that we are unable to repay our current and long-term obligations as they come due, we could be forced to curtail or abandon our business operations, and/or file for bankruptcy protection; the result of which would likely be that our securities would decline in value and/or become worthless." FIELD FAMILY: Wants Exclusivity Periods Extended Until February --------------------------------------------------------------- Field Family Associates, LLC asks the U.S. Bankruptcy Court for the Eastern District of Pennsylvania to extend its exclusive periods to file a Chapter 11 Plan until Dec. 8, 2013, and solicit acceptances for that Plan until Feb. 6. The Debtor filed a Plan of Reorganization on June 27, 2013. As reported in the Troubled Company Reporter on July 10, the Plan contemplates the reorganization of the Debtor and the satisfaction of all outstanding Claims against the Debtor over time. The Plan will be funded from cash on hand, cash from future operations, and a loan in the approximate amount of $2 million from LaGuardia Express LLC, an affiliate of the Debtor. All Claims will be satisfied by cash payments or the issuance of cash flow notes to be issued by the Debtor. Existing LLC interests in the Debtor will be preserved in the Reorganized Debtor. A copy of the disclosure statement is available at: http://bankrupt.com/misc/fieldfamily.doc229.pdf The disclosure statement was submitted by Lawrence G. McMichael, Esq., Peter C. Hughes, Esq., and Catherine Pappas, Esq., at Dilworth Paxson LLP, counsel for the Debtor. About Field Family Five creditors filed an involuntary Chapter 11 bankruptcy petition against King of Prussia, Pa.-based Field Family Associates, LLC (Bankr. E.D. Pa. Case No. 12-16331) on July 2, 2012. On Sept. 6, 2012, a sixth creditor filed a Joinder in the involuntary Chapter 11 Petition. The Court entered an order for relief on Sept. 12, 2012. The Debtor owns and operates a 216-room hotel located at 144-10 135th Steet, in Jamaica, New York. Judge Stephen Raslavich presides over the case. Catherine G. Pappas, Esq., Lawrence G. McMichael, Esq., and Peter C. Hughes, Esq., at Dilworth Paxson LLP, in Philadelphia, Pa., represent the Alleged Debtor as counsel. Ashely M. Chan, Esq., at Hangley Aronchick Segal & Pudlin, in Philadelphia, Pa., represents the petitioning creditors as counsel. The U.S. Trustee appointed a three-member creditors committee. Hangley Aronchick Segal Pudline & Schiller represents the Committee. FINJAN HOLDINGS: Incurs $1.2 Million Net Loss in 2nd Quarter ------------------------------------------------------------ Finjan Holdings, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q for the period ended June 30, 2013, disclosing a net loss of $1.19 million on $1.19 million of revenues, as compared with net income of $142,000 on $3.11 million of revenues for the same period during the prior year. For the six months ended June 30, 2013, the Company reported a net loss of $1.95 million on $1.19 million of revenues, as compared with net income of $33,000 on $3.11 million of revenues for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $31.84 million in total assets, $1.16 million in total liabilities and $30.67 million total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/Brii1b About Finjan Finjan is a leading online security and technology company which owns a portfolio of patents, related to software that proactively detects malicious code and thereby protects end-users from identity and data theft, spyware, malware, phishing, trojans and other online threats. Founded in 1997, Finjan is one of the first companies to develop and patent technology and software that is capable of detecting previously unknown and emerging threats on a real-time, behavior-based basis, in contrast to signature-based methods of intercepting only known threats to computers, which were previously standard in the online security industry. Converted Organics disclosed a net loss of $8.42 million in 2012, as compared with a net loss of $17.98 million in 2011. Moody, Famiglietti & Andronico, LLP, in Tewksbury, Massachusetts, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012, citing recurring losses and negative cash flows from operations and an accumulated deficit that raises substantial doubt about the Company's ability to continue as a going concern. FIRST SECURITY: Incurs $4 Million Net Loss in Second Quarter ------------------------------------------------------------ First Security Group, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $3.99 million on $7.78 million of total interest income for the three months ended June 30, 2013, as compared with a net loss of $7.27 million on $9.58 million of total interest income for the same period during the prior year. For the six months ended June 30, 2013, the Company reported a net loss of $11.37 million on $15.59 million of total interest income, as compared with a net loss of $13.10 million on $19.27 million of total interest income for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $1.06 billion in total assets, $979.99 million in total liabilities and $86.65 million in total shareholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/yvlOLi About First Security Group First Security Group, Inc., is a bank holding company headquartered in Chattanooga, Tennessee, with $1.2 billion in assets as of Sept. 30, 2010. Founded in 1999, First Security's community bank subsidiary, FSGBank, N.A., has 37 full- service banking offices, including the headquarters, along the interstate corridors of eastern and middle Tennessee and northern Georgia and 325 full-time equivalent employees. In Dalton, Georgia, FSGBank operates under the name of Dalton Whitfield Bank; along the Interstate 40 corridor in Tennessee, FSGBank operates under the name of Jackson Bank & Trust. In the auditors' report accompanying the financial statements for year ended Dec. 31, 2011, Joseph Decosimo and Company, PLLC, in Chattanooga, Tennessee, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has recently incurred substantial losses. The Company is also operating under formal supervisory agreements with the Federal Reserve Bank of Atlanta and the Office of the Comptroller of the Currency and is not in compliance with all provisions of the Agreements. Failure to achieve all of the Agreements' requirements may lead to additional regulatory actions. The Company reported a net loss of $23.06 million in 2011, a net loss of $44.34 million in 2010, and a net loss of $33.45 million in 2009. FLORIDA GAMING: Section 341(a) Meeting Set on October 4 --------------------------------------------------------- A meeting of creditors in the bankruptcy case of Florida Gaming Centers, Inc., will be held on Oct. 4, 2013, at 2:00 p.m. at 51 SW First Ave Room 1021, Miami. Creditors have until Jan. 2, 2014, to submit their proofs of claim. 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 Florida Gaming Florida Gaming Centers Inc. filed for Chapter 11 bankruptcy (Bankr. S.D. Fla. Case No. 13-29597) in Miami on Aug. 19, 2013. Florida Gaming Centers operates a casino and jai-alai frontons in Miami. The Company listed debt of $138.3 million and assets of $180 million in its petition. Bennett Collett, Jr., signed the petition as president and CEO. Judge Robert A. Mark presides over the case. Luis Salazar, Esq., -- salazar@salazarjackson.com -- at SALAZAR JACKSON, LLP, in Miami, FL, serves as the Debtors' counsel. Its parent, Florida Gaming Corp. (FGMG:US), and two other affiliates also sought court protection. FOURTH QUARTER PROPERTIES: Case Dismissal Hearing Continued ----------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Georgia granted the motion of Fourth Quarter Properties XXXVIII, LLC, Cornerstone Commercial Mortgages, LLC, and Charter Bank continuing the hearing on the motion to dismiss case, or in the alternative for relief from the automatic stay. As reported in the Troubled Company Reporter on Aug. 14, 2013, according to papers filed with the Court August 5, through negotiations, the parties have reached an agreement regarding their claims, subject to the Court's approval, and the Debtor has contemporaneously filed a motion seeking approval of their agreement. The parties have agreed, subject to the Court's approval, to the continuance of the hearing on Cornerstone and Charter's Motion to Dismiss, until the Court has had an opportunity to hear the settlement motion. According to the parties, the Office of the United States Trustee has advised counsel for the Debtor that it does not oppose the requested relief. In the event the Court denies the Settlement Motion, the Parties said, any Party may request that the hearing on the Motion to Dismiss be heard on not less than 10 days advance notice. About Fourth Quarter Properties Fourth Quarter Properties XXXVIII, LLC, filed a Chapter 11 petition (Bankr. N.D. Ga. Case No. 13-10585) in Newnan, Georgia, on March 5, 2013. The Debtor is a single asset real estate debtor as defined in 11 U.S.C. Sec. 101(51B) and has property in 45, 47 & 59 Ansley Drive, in Newnan. The Debtor estimated at least $10 million in assets and at least $1 million in liabilities as of the Chapter 11 filing. Austin E. Carter, Esq., and Matthew Stewart Cathey, Esq., at Stone & Baxter, LLP, in Macon, Georgia, serves as the Debtor's counsel. Ryan R. Hendley, Esq. -- rhendley@rrllaw.com -- at Reynolds, Reynolds & Little, LLC represents creditor Cornerstone Commercial Mortgages, LLC, and Lynn Carroll, Esq. -- lcarroll@sglegal.com -- at Siegel & Golder, P.C., represents creditor Charter Bank. FRIENDFINDER NETWORKS: Incurs $10.3 Million Net Los in Q2 --------------------------------------------------------- FriendFinder Networks Inc. reported a net loss of $10.32 million on $68.96 million of total revenue for the three months ended June 30, 2013, as compared with a net loss of $10.53 million on $81.08 million of total revenue for the same period during the prior year. For the six months ended June 30, 2013, the Company reported a net loss of $20.71 million on $141.36 million of total revenue, as compared with a net loss of $32.05 million on $162.08 million of total revenue for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $465.30 million in total assets, $661.96 million in total liabilities and a $196.66 million total stockholders' deficiency. "We continued to execute on our strategic plan to support our flagship brands and improve marketing efficiencies during the second quarter. By focusing on our top brands and reducing investments in lower margin affiliate and advertising activity, we have been able to improve our bottom line and reach higher quality users. These efforts, in part, helped increase EBITDA to $18.4 million during the quarter and attract a more valuable, long-term user that will allow us to build a strong core of recurring revenues going forward," said Anthony Previte, chief executive officer of FriendFinder Networks. "Additionally, our Live Interactive business continues its impressive streak and achieved its 14th consecutive quarter of year-over-year revenue growth with an increase of 4.0% to $24.1 million." Mr. Previte continued, "In parallel to our efforts to improve operational efficiency, we continue to work with our advisors and lenders to refinance our long-term debt. We remain confident in our ability to achieve a successful resolution in this matter." A copy of the press release is available for free at: http://is.gd/TvX8YQ About FriendFinder Networks FriendFinder Networks (formerly Penthouse Media Group) owns and operates a variety of social networking Web sites, including FriendFinder.com, AdultFriendFinder.com, Amigos.com, and AsiaFriendFinder.com. All total, its Web sites are offered in 12 languages to users in some 170 countries. The company also publishes the venerable adult magazine PENTHOUSE, and produces adult video content and related images. The Company is based in Boca Raton, Florida. FriendFinder Networks reported a net loss of $49.44 million in 2012, a net loss of $31.14 million in 2011, and a net loss of $43.15 million in 2010. EisnerAmper LLP, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company's New First Lien Notes and Cash Pay Second Lien Notes, absent a restructuring or refinancing, mature on Sept. 30, 2013, and further are subject to maturity date acceleration by the lenders as a result of events of default upon the expiration or termination of forbearance agreements currently in place. In addition, the Company has failed to comply with certain covenants related to its Non-Cash Pay Second Lien Notes which mature on April 30, 2014. Accordingly, all such debt has been classified as current liabilities as of Dec. 31, 2012, and cannot be satisfied with available funds which raises substantial doubt about the Company's ability to continue as a going concern. * * * In the Nov. 14, 2012, edition of the TCR, Standard & Poor's Ratings Services lowered its rating on FriendFinder Networks Inc. to 'CC' from 'CCC'. "The downgrade follows FriendFinder's announcement that it had reached a forbearance agreement with 85% of the lenders in its senior secured notes and 100% of the lenders in its second lien cash pay notes that defers the excess cash flow payments through Feb. 4, 2013," said Standard & Poor's credit analyst Daniel Haines. "The company has decided to preserve liquidity as it attempts to refinance its debt. We are withdrawing our ratings at the company's request." GENERAL STEEL: Delays Form 10-Q for Second Quarter -------------------------------------------------- General Steel Holdings, Inc., was unable to file its quarterly report on Form 10-Q for the quarter ended June 30, 2013, within the prescribed time period without unreasonable effort or expense because additional time is required to complete the preparation of the Company's financial statements in time for filing. The Company has been in the process of compiling and reviewing its prior outstanding reports. The Company said the quarterly report will be filed as soon as practicable. About General Steel Holdings General Steel Holdings, Inc., headquartered in Beijing, China, produces a variety of steel products including rebar, high-speed wire and spiral-weld pipe. The Company has operations in China's Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality with seven million metric tons of crude steel production capacity under management. For more information, please visit www.gshi-steel.com. General Steel incurred a net loss of $231.93 million on $1.96 billion of sales for the year ended Dec. 31, 2012, as compared with a net loss of $283.29 million on $2.45 billion of sales for the year ended Dec. 31, 2011. As of March 31, 2013, the Company had $2.44 billion in total assets, $2.86 billion in total liabilities and a $427.72 million total deficiency. GEOMET INC: Posts $42.4 Million Net Income in Second Quarter ------------------------------------------------------------ GeoMet, Inc., reported net income of $42.37 million on $12.09 million of total revenues for the three months ended June 30, 2013, as compared with a net loss of $53.90 million on $7.77 million of total revenues for the same period during the prior year. For the six months ended June 30, 2013, the Company reported net income of $36.61 million on $23.01 million of total revenues, as compared with a net loss of $106.85 million on $17.99 million of total revenues for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $63.13 million in total assets, $99.28 million in total liabilities, $37.95 million in series A convertible redeemable preferred stock, and a $74.10 million total stockholders' deficit. William C. Rankin, GeoMet's president and chief executive officer, commented, "On June 14, the Company closed the sale of all of its coalbed methane assets in the state of Alabama resulting in proceeds of approximately $62 million. The proceeds were used to reduce bank indebtedness by $57 million and $5 million was earmarked for transaction related costs. As a result, the deficiency under the Company's credit agreement was eliminated; however, the maturity date of April 1, 2014 is unchanged. In connection with the sale, the Company recorded a gain of $37.1 million during the quarter." Mr. Rankin further stated, "Natural gas prices have continued to recover over the last year and therefore the company was not required to further impair its gas properties during the current quarter." Lastly, Mr. Rankin stated, "The combination of the sale, the elimination of the borrowing deficiency and the recovery of natural gas prices allows the Company, with the assistance and advice of FBR Capital Markets, to continue to evaluate its strategic alternatives." A copy of the press release is available for free at: http://is.gd/5PfJOg About Geomet Inc. Houston, Texas-based GeoMet, Inc., is an independent energy company primarily engaged in the exploration for and development and production of natural gas from coal seams (coalbed methane) and non-conventional shallow gas. Its principal operations and producing properties are located in the Cahaba and Black Warrior Basins in Alabama and the central Appalachian Basin in Virginia and West Virginia. It also owns additional coalbed methane and oil and gas development rights, principally in Alabama, Virginia, West Virginia, and British Columbia. As of March 31, 2012, it owns a total of 192,000 net acres of coalbed methane and oil and gas development rights. For the year ended Dec. 31, 2012, the Company incurred a net loss of $149.95 million on $39.38 million of total revenues, as compared with net income of $2.81 million on $35.61 million of total revenues in 2011. Going Concern "Our audited financial statements for the fiscal year ended December 31, 2012 were prepared on a going concern basis in accordance with United States generally accepted accounting principles. The going concern basis of presentation assumes that we will continue in operation for the next twelve months and will be able to realize our assets and discharge our liabilities and commitments in the normal course of business and do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from our inability to continue as a going concern. Our credit facility matures on April 1, 2014. As a result, all borrowings under our credit facility will be classified as current on April 2, 2013. Our operating and capital plans for the next twelve months call for dedication of substantially all of our excess cash flow to the repayment of indebtedness and the possible sale of assets to reduce indebtedness, with the goal of eliminating our borrowing base deficiency, and refinancing our credit facility. Therefore, we concluded that due to the uncertainties surrounding our ability to sell assets at acceptable prices, to reduce our indebtedness to an amount less than the borrowing base and to refinance our credit facility before its maturity date, substantial doubt exists as to our ability to continue as a going concern. If we were unable to continue as a going concern, the values we receive for our assets on liquidation or dissolution could be significantly lower than the values reflected in our financial statements." GLOBALSTAR INC: Incurs $126.3 Million Net Loss in 2nd Quarter ------------------------------------------------------------- Globalstar, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q for the period ended June 30, 2013, disclosing a net loss of $126.27 million on $19.83 million of total revenue, as compared with a net loss of $27.53 million on $19.98 million of total revenue for the same period last year. For the six months ended June 30, 2013, the Company reported a net loss of $151.35 million on $39.16 million of total revenue, as compared with a net loss of $52.05 million on $36.71 million of total revenue for the same period during the prior year. The Company's balance sheet at June 30, 2013, showed $1.37 billion in total assets, $953.44 million in total liabilities and $421.25 million in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/RSwAuj 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. Globalstar reported a net loss of $25.1 million on $19.3 million of revenue for the three months ended March 31, 2013, compared with a net loss of $24.5 million on $16.7 million of revenue for the same period last year. The Company said in its Form 10-Q for the quarter ended March 31, 2013, "We currently lack sufficient resources to meet our existing contractual obligations over the next 12 months. As a result, there is substantial doubt that we can continue as a going concern. In order to continue as a going concern, we must obtain additional external financing; amend the Facility Agreement and certain other contractual obligations; and restructure the 5.75% Notes. GORDIAN MEDICAL: Has Final OK to Incur DIP Financing of $4-Mil. --------------------------------------------------------------- On Aug. 23, 2013, the U.S. Bankruptcy Court for the Central District of California entered a final order authorizing Gordian Medical, Inc., to obtain secured postpetition indebtedness from its President, Gerald Del Signore, in the amount of up to $4,000,000, to allow the Debtor to maintain a cash on hand balance in its Debtor in Possession accounts of no less than $3.5 million on a weekly basis. The DIP Note will bear interest at the rate of 5% per annum, with a default rate of 7%. The interest will accrue and be payable with the principal of the Promissory Note. The maturity date of the loan will be on Feb. 1, 2014. To the extent that the cash balance in the Debtor's Debtor in Possession account exceeds $4 million on any particular week, the Debtor can repay the DIP Lender amounts previously loaned provided that the repayment does not reduce the cash balance below $4 million. Counsel for the Debtor can be reached at: Samuel R. Maizel, Esq. Scotta E. McFarland, Esq. PACHULSKI STANG ZIEHL & JONES LLP 10100 Santa Monica Blvd., 13th Floor Los Angeles, CA 90067 Tel: (310) 277-6910 Fax: (310) 201-0760 E-mail: smaizel@pszjlaw.com smcfarland@pszjlaw.com About Gordian Medical Gordian Medical, Inc., dba American Medical Technologies, filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 12-12339) in Santa Ana, California, on Feb. 24, 2012, after Medicare refunds were halted. Irvine, California-based Gordian Medical provides supplies and services to treat serious wounds. The Debtor has active relationships with and serves patients in more than 4,000 nursing facilities in 49 states with the heaviest concentration of the nursing homes being in the south and southeast sections of the United States. In its schedules, the Debtor disclosed $37,877,279 in assets and $7,585,271 in liabilities as of the Petition Date. Judge Mark S. Wallace oversees the case. Pachulski Stang Ziehl & Jones LLP serves as the Debtor's counsel. Fulbright & Jaworski LLP serves as the Debtor's special regulatory counsel. Loeb & Loeb LLP serves as the Debtor's special tax counsel. GlassRatner Advisory & Capital Group LLC serves as the Debtor's financial advisor. The U.S. Trustee appointed five members to the Official Committee of Unsecured Creditors. The Committee is represented by Landau Gottfried & Berger LLP. GORDIAN MEDICAL: Chapter 11 Plan Says All Claims Unimpaired ----------------------------------------------------------- Gordian Medical, Inc., filed with U.S. Bankruptcy Court for the Central District of California on Aug. 23, 2013, a Plan of Reorganization that provides for the payment of all Allowed Claims in full on the later of the Effective Date and the date upon which a Claim becomes an Allowed Claim and the continued operation of the Debtor's business. The source of funds for the payments that the Reorganized Debtor will be required to make (or reserve for) on the Effective Date is the Debtor's Cash on hand and the contribution to be made by Gerald Del Signore in an amount not to exceed $7.5 million. Because all Claims against, and Interests, in the Debtor are Unimpaired under the Plan, the Debtor is not soliciting acceptances or rejections of the Plan from these Claims and or Interests. Hence, the Debtor will not distribute a disclosure statement with its Plan. The Debtor will, however, file a motion for confirmation of the Plan with the Court. The Allowed CMS Secured Claim (Class 2), if any, will be satisfied by CMS offsetting the amount of its Allowed Secured Claim against any amount that CMS owes the Debtor, up to the amount of any Allowed Secured Claim. Such offset will take place on the later of (a) the Effective Date and (b) (i) the date when any CMS Secured Claim is Allowed and (ii) the amount CMS owes the Debtor is determined. Interest will accrue on the amount of any CMS Allowed Secured Claim at the Judgment Rate from the Petition Date until the date of payment and will be included in the amount of any CMS Allowed Secured Claim; provided, however, the amount of any Allowed CMS Secured Claim will not exceed the amount that it is determined CMS owes the Debtor. The Allowed CMS Secured Claim, to the extent one exists, is unimpaired by the Plan. General Unsecured Claims (Class 5) will be paid in Cash in full, plus interest, on the later of (a) the Effective Date and (b) the date upon which General Unsecured Claim becomes an Allowed General Unsecured Claim, or, in either event, as soon thereafter as is practicable. Each Allowed General Unsecured Claim will accrue interest at the Judgment Rate from the Petition Date until it is paid. The Claims filed by CMS and the IRS are each filed, at least partially, as General Unsecured Claims. The Debtor disputes the IRS Claim and the CMS Claim. The Debtor has previously filed an objection to the IRS Claim on the basis that it was filed after the Governmental Unit Bar Date and the Debtor intends to file an objection to the Claim of CMS. The Debtor expects the objections to both of these Claims will be resolved prior to the Confirmation Hearing and that both Claims will be disallowed in full. The Class 5 Claims are unimpaired by the Plan. On the Effective Date, all Holders of Class 6 Interests will retain his or her Interest in the Reorganized Debtor in the same percentage as he or she held in the Debtor and such interest will be unaffected by the Plan. Class 6 Interests are unimpaired by the Plan. A copy of the Debtor's Plan of Reorganization, dated Aug. 23, 2013, is available at: http://bankrupt.com/misc/gordianmedical.doc685.pdf Counsel for the Debtor can be reached at: Samuel R. Maizel, Esq. Scotta E. McFarland, Esq. PACHULSKI STANG ZIEHL & JONES LLP 10100 Santa Monica Blvd., 13th Floor Los Angeles, CA 90067 Tel: (310) 277-6910 Fax: (310) 201-0760 E-mail: smaizel@pszjlaw.com smcfarland@pszjlaw.com About Gordian Medical Gordian Medical, Inc., dba American Medical Technologies, filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 12-12339) in Santa Ana, California, on Feb. 24, 2012, after Medicare refunds were halted. Irvine, California-based Gordian Medical provides supplies and services to treat serious wounds. The Debtor has active relationships with and serves patients in more than 4,000 nursing facilities in 49 states with the heaviest concentration of the nursing homes being in the south and southeast sections of the United States. In its schedules, the Debtor disclosed $37,877,279 in assets and $7,585,271 in liabilities as of the Petition Date. Judge Mark S. Wallace oversees the case. Pachulski Stang Ziehl & Jones LLP serves as the Debtor's counsel. Fulbright & Jaworski LLP serves as the Debtor's special regulatory counsel. Loeb & Loeb LLP serves as the Debtor's special tax counsel. GlassRatner Advisory & Capital Group LLC serves as the Debtor's financial advisor. The U.S. Trustee appointed five members to the Official Committee of Unsecured Creditors. The Committee is represented by Landau Gottfried & Berger LLP. GRAYMARK HEALTHCARE: Conference Call Held to Discuss Q2 Results --------------------------------------------------------------- Graymark Healthcare, Inc., announced its financial results for the quarter ended June 30, 2013. Loss from continuing operations -? the net of taxes in the second quarter of 2013 was $1.8 million, compared to a loss of $5.3 million in the year ago quarter. That loss attributable to Graymark was $1.6 million or nine cents per share in the second quarter of 2013, compared to a net loss of $5.3 million or 34 cents per share in the year ago quarter. On June 30, 2013, cash and cash equivalents totaled $.1 million compared to $.3 million on Dec. 31, 2012. The primary uses of cash flow during the quarter included cash required to fund losses from continuing operations and repayment of debt. As of June 30, 2013, the Company's total debt was $18.7 million, compared to $18.6 million at Dec. 31, 2012. The increase on outstanding debt was primarily related to proceeds from notes issued to Mr. Oliver, which were offset by principal payments made on our credit facility with Arvest Bank. Graymark Healthcare reported a net loss of $1.63 million on $2.44 million of net revenues for the three months ended June 30, 2013, as compared with a net loss of $5.31 million on $4.31 million of net revenues for the same period during the prior year. For the six months ended June 30, 2013, the Company reported a net loss of $4.34 million on $5.34 million of net revenues, as compared with a net loss of $7.28 million on $8.67 million of net revenues for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $4.78 million in total assets, $26.20 million in total liabilities and a $21.41 million total deficit. A transcript of the earnings conference call is available for free at http://is.gd/WVeFmz About Graymark Healthcare Graymark Healthcare, Inc., headquartered in Oklahoma City, Okla., provides care management solutions to the sleep disorder market. As of June 30, 2012, the Company operated 107 sleep diagnostic and therapy centers in 10 states. The Company's balance sheet at March 31, 2013, showed $5.70 million in total assets, $25.51 million in total liabilities and a $19.81 million total deficit. Going Concern As of March 31, 2013, the Company had an accumulated deficit of $60.2 million and reported a net loss of $2.7 million for the first quarter of 2013. In addition, the Company used $0.3 million in cash from operating activities from continuing operations during the quarter. On March 29, 2013, the Company signed a definitive purchase agreement with Foundation Healthcare Affiliates, LLC to purchase 100 percent of the interests in Foundation Surgery Affiliates, LLC and Foundation Surgical Hospital Affiliates, LLC, in exchange for 98.5 million shares of the Company's common stock. Management expects the transaction to close in the second quarter of 2013; however, there is no assurance the acquisition will close at that time or at all. "If the Company is unable to close the Foundation transaction or raise additional funds, the Company may be forced to substantially scale back operations or entirely cease its operations and discontinue its business. These uncertainties raise substantial doubt regarding the Company's ability to continue as a going concern," according to the Company's quarterly report for the period ended March 31, 2013. GSW HOLDINGS: Plan Effective Date Occurred on July 23 ----------------------------------------------------- The Effective Date of the Chapter 11 Amended Plan of Reorganization for GSW Holdings, LLC, dated as of June 21, 2013, filed by GSW Holdings, LLC, occurred on July 23, 2013. The Notice of Occurrence of the Effective Date of the Chapter 11 Amended Plan of Reorganization was filed by: David A. Wheeler, Esq. WHEELER & WHEELER, PLLC 185 Main Street Biloxi, MS 39530 Tel: (228) 374-6720 Fax: (228) 374-6721 Local Counsel for Reorganized Debtor - and - Douglas S. Draper, Esq. Leslie A. Collins, Esq. Greta M. Brouphy, Esq. HELLER, DRAPER, PATRICK&HORN, L.L.C. 650 Poydras Street, Suite 2500 New Orleans, LA 70130 Tel: (504) 299-3300 Fax: (504) 299-3399 E-mail: ddraper@hellerdraper.com lcollins@hellerdraper.com gbrouphy@hellerdraper.com Counsel to the Reorganized Debtor On July 8, 2013, the U.S. Bankruptcy Court for the Southern District of Mississippi confirmed the Chapter 11 Amended Plan of GSW Holdings, LLC, dated as of June 21, 2013. A copy of the Order Confirming the Chapter 11 Amended Plan is available at http://bankrupt.com/misc/gswholdings.doc221.pdf About GSW Holdings LLC Gulfport, Mississippi-based GSW Holdings, LLC, filed for Chapter 11 bankruptcy (Bankr. S.D. Miss. Case No. 11-52338) on Oct. 11, 2011. Judge Katharine M. Samson presides over the case. David A. Wheeler, Esq., at Wheeler & Wheeler, PLLC, in Biloxi, Miss., serve as local bankruptcy counsel. The Debtor disclosed $22,225,500 in assets and $8,851,228 in liabilities. Douglas S. Draper, Esq., Leslie A. Collins, Esq., and Greta M. Brouphy, Esq., at Heller, Draper, Patrick & Horn, L.L.C., in New Orleans, La., represent the Debtor as counsel. HAAS ENVIRONMENTAL: U.S. Trustee Names Members to Creditors' Panel ------------------------------------------------------------------ Roberta A. DeAngelis, the U.S. Trustee for Region 3, appoints three creditors to the committee of unsecured creditors in the Chapter 11 case of Haas Environmental, Inc. The Committee members are: 1. Bernard Reiley, chairperson Revoil, Inc. 280 N. East Street York, PA 17403 Tel No: 717-846-9551 Fax No: 717-846-8654 2. Dan Simpson Wex Bank 7090 Union Park Center, Suite 350 Midvale, UT 84047 Tel No: 801-568-4365 Fax No: 207-253-1307 3. Quint Barefoot Zappa-Tec, LLC 828 Knox Road McLeansville, NC 27301 Tel No: 336-378-6004 Fax No: 336-346-1038 Haas Environmental, Inc., filed a Chapter 11 petition (Bankr. D.N.J. Case No. 13-27297) in Trenton, New Jersey on Aug. 6, 2013. Jerrold N. Poslusny, Jr., Esq., at Cozen O'Connor, serves as counsel. The Debtor estimated assets and debt of $10 million to $50 million. HAAS ENVIRONMENTAL: Schedules Filing Deadline Extended to Sept. 3 ----------------------------------------------------------------- At the behest of Haas Environmental, Inc., the U.S. Bankruptcy Court extended the Debtor's time to file its missing schedules until Sept. 3, 2013. Haas Environmental, Inc., filed a Chapter 11 petition (Bankr. D.N.J. Case No. 13-27297) on Aug. 6, 2013. Eugene Haas signed the petition as president. Judge Kathryn C. Ferguson presides over the case. The Debtor estimated assets and debts of at least $10 million. Jerrold N. Poslusny, Jr., Esq., at Cozen O'Connor, in Cherry Hill, New Jersey, serves as the Debtor's counsel. HAAS ENVIRONMENTAL: PUEFC Balks at Bid to Use Cash Collateral ------------------------------------------------------------- People's United Equipment Finance Corp. ("PUEFC") filed an objection to Haas Environmental, Inc.'s motion to use cash collateral. PUEFC cited these reasons: 1. The Court should consider converting the Chapter 11 case sua sponte to a Chapter 7 Liquidation 2. The Debtor has failed to satisfy the strict standard for the use of cash collateral and as such the Court should prohibit the Debtor from the continued use of cash collateral. PUEFC is a secured creditor of the Debtor with a first perfected security interest in certain specific property as well as a perfected security interest in virtually all other assets of the Debtor, including, but not limited to, accounts, accounts receivable, inventory and other collateral which is or may result in cash collateral. Commercial Credit Group holds a second position in cash collateral and Sovereign Bank holds a third position in accounts receivables. According to the Debtor's application, PUEFC, Commercial and Sovereign have outstanding balances of approximately $3,214,000, $2,480,000 and $784,000, respectively, for a total of almost $6.5 million. PUEFC and Commercial had consented to the Court's entry of an Interim Order authorizing the Use of Cash collateral through August 20, 2013. PUEFC said the Court should enter an order that: (1) the Debtor should cease using cash collateral; (2) the Debtor provide PUEFC with a complete accounting of cash collateral used since the Petition Date; and (3) the Debtor turn over to PUEFC a sum sufficient to cover the proceeds of collateral that it has disposed of. Co-Counsel for Secured Creditor People's United Equipment Finance Corp. can be reached at: Frank Peretore, Esq. Robert T. Bonsignore, Esq. PERETORE & PERETORE, P.C. 191 Woodport Road Sparta, NJ 07871 Tel: (973) 729-8991 Haas Environmental, Inc., filed a Chapter 11 petition (Bankr. D.N.J. Case No. 13-27297) on Aug. 6, 2013. Eugene Haas signed the petition as president. Judge Kathryn C. Ferguson presides over the case. The Debtor estimated assets and debts of at least $10 million. Jerrold N. Poslusny, Jr., Esq., at Cozen O'Connor, in Cherry Hill, New Jersey, serves as the Debtor's counsel. HALLWOOD GROUP: Incurs $357,000 Net Loss in Second Quarter ---------------------------------------------------------- The Hallwood Group Incorporated reported a net loss of $357,000 on $32.48 million of revenue for the three months ended June 30, 2013, as compared with a net loss of $1.22 million on $37.18 million of revenue for the same period during the prior year. For the six months ended June 30, 2013, the Company reported a net loss of $1.70 million on $63.76 million of revenue, as compared with a net loss of $10.77 million on $73.06 million of revenue for the same period a year ago. A copy of the press release is available for free at: http://is.gd/gOjUGs About Hallwood Group Dallas, Texas-based The Hallwood Group Incorporated (NYSE MKT: HWG) operates as a holding company. The Company operates its principal business in the textile products industry through its wholly owned subsidiary, Brookwood Companies Incorporated. Brookwood is an integrated textile firm that develops and produces innovative fabrics and related products through specialized finishing, treating and coating processes. Prior to October 2009, The Hallwood Group Incorporated held an investment in Hallwood Energy, L.P. ("Hallwood Energy"). Hallwood Energy was a privately held independent oil and gas limited partnership and operated as an upstream energy company engaged in the acquisition, development, exploration, production, and sale of hydrocarbons, with a primary focus on natural gas assets. The Company accounted for the investment in Hallwood Energy using the equity method of accounting. Hallwood Energy filed for bankruptcy in March 2009. In connection with the confirmation of Hallwood Energy's bankruptcy in October 2009, the Company's ownership interest in Hallwood Energy was extinguished and the Company no longer accounts for the investment in Hallwood Energy using the equity method of accounting. Hallwood Group incurred a net loss of $17.94 million in 2012, as compared with a net loss of $6.33 million in 2011. The Company's balance sheet at March 31, 2013, showed $70.82 million in total assets, $30.97 million in total liabilities and $39.85 million in total stockholders' equity. Deloitte & Touche LLP, in Dallas, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company is dependent on its subsidiary to receive the cash necessary to fund its ongoing operations and obligations. It is uncertain whether the subsidiary will be able to make payment of dividends to its fund ongoing operations. These conditions raise substantial doubt about its ability to continue as a going concern. HARRISBURG, PA: Receiver Files Plan to Address $360MM Debt ---------------------------------------------------------- Kris Maher, writing for The Wall Street Journal, reports that William B. Lynch, the state-appointed receiver for the city of Harrisburg, Pennsylvania, on Monday filed with the Commonwealth Court in Harrisburg a proposal to rid Pennsylvania's financially troubled capital of $360 million in debt. According to the report, under the plan: -- Harrisburg would sell its debt ridden incinerator for between $126 million and $132 million to Lancaster County Solid Waste Management Authority; -- a state financing agency would issue bonds for between $258 million and $263 million; and -- its parking facilities would be leased for 40 years and run by a public-private partnership. According to the report, in addition to erasing its debt, Harrisburg would get a payment of $13.2 million from the parking transaction to balance its 2013 budget. It will get a one-time payment of around $12 million to be used for economic development and infrastructure repairs. On an ongoing basis, it would get $3.3 million a year in parking revenue. According to WSJ, a spokesman for Mr. Lynch said a decision could be made within three weeks. The report notes the receiver has negotiated with the city's creditors, who have agreed to take about $100 million less than they are owed, although they could recoup more money after 25 years from parking revenues. According to the report, court approval of the proposal would bring the city significantly closer to stabilizing its finances after years of missteps and the intervention of the state's governor. The sale and lease also require city council to approve legislation sanctioning the deals. A council member said bills to do so would be introduced Tuesday. The report notes Assured Guaranty, a creditor, said it is committed to working "cooperatively with the Harrisburg Receiver and other stakeholders to implement a recovery plan that both restores the City's fiscal health and respects the rights of creditors." HCSB FINANCIAL: Delays Q2 Form 10-Q to Complete Audit ----------------------------------------------------- HCSB Financial Corporation was not able to timely file its quarterly report on Form 10-Q for the quarter ended June 30, 2013, because the audit of Company's consolidated financial statements for the year ended Dec. 31, 2012, has not been finalized. At this time, the Company currently anticipates reporting a net loss ranging from $0.1 million to $0.2 million for the period ended June 30, 2013. Based on the Company's analysis of its allowance for loan losses, the Company does not anticipate taking any loan loss provision for the quarter ended June 30, 2013. However, based on the Company's continued analysis, the Company's actual results for the period ended June 30, 2013, may differ from its current estimates. The Company is still finalizing its unaudited consolidated financial statements and related disclosures for the quarter ended June 30, 2013. About HCSB Financial Loris, South Carolina-based HCSB Financial Corporation was incorporated on June 10, 1999, to become a holding company for Horry County State Bank. The Bank is a state chartered bank which commenced operations on Jan. 4, 1988. From its 13 branch locations, the Bank offers a full range of deposit services, including checking accounts, savings accounts, certificates of deposit, money market accounts, and IRAs, as well as a broad range of non-deposit investment services. During the third quarter of 2011, the Bank closed its Covenant Towers branch located at Myrtle Beach. All deposits were transferred to the Bank's Myrtle Beach branch and the Bank does not expect any disruption of service in that market for its customers. HCSB reported a net loss of $29.01 million in 2011, compared with a net loss of $17.27 million in 2010. The Company's balance sheet at Sept. 30, 2012, showed $512.65 million in total assets, $520.03 million in total liabilities and a $7.38 million total shareholders' deficit. HERCULES OFFSHORE: Now Owns 100% Equity Stake of Discovery ---------------------------------------------------------- Under the Norwegian Securities Trading Act, a Cayman subsidiary of Hercules Offshore, Inc., made a mandatory cash tender offer for all remaining shares of Discovery Offshore S.A. that were not owned by the Company or its affiliates. The offer expired on Aug. 12, 2013, and the Company received valid acceptances of the offer with respect to 2,054,989 shares. As a result, the Company and its affiliates owned approximately 98.8 percent of Discovery's outstanding shares upon the expiration of the mandatory offer on Aug. 12, 2013. The Company has exercised its rights to acquire the remaining shares pursuant to Luxembourg Law. Accordingly, as of Aug. 15, 2013, the Company acquired as a matter of law the shares not tendered in the offer on the same terms as the offer and owns 100 percent of the shares of Discovery. Discovery is a development stage company whose purpose is to own new ultra high specification jackup drilling rigs. As a result of the acquisition of Discovery, two ultra high specification rigs, Discovery Triumph and Discovery Resilience, are included in the Company's International Offshore segment. About Hercules Offshore Hercules Offshore Inc. (NASDAQ: HERO) -- http://www.herculesoffshore.com/-- provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry in the United States, Gulf of Mexico and internationally. The Company provides these services to integrated energy companies, independent oil and natural gas operators and national oil companies. The Company operates in six business segments: Domestic Offshore, International Offshore, Inland, Domestic Liftboats, International Liftboats and Delta Towing. Hercules incurred a net loss of $127 million in 2012, a net loss of $76.12 million in 2011, and a net loss of $134.59 million in 2010. As of June 30, 2013, the Company had $2.15 billion in total assets, $1.23 billion in total liabilities and $917.27 million in total equity. * * * The Troubled Company Reporter said on April 11, 2013, that Moody's Investors Service upgraded Hercules Offshore, Inc.'s Corporate Family Rating to B2 from B3. Hercules' B2 CFR is supported by its improved cash flow and lower leverage on the back of increased drilling activity and higher day-rates in the Gulf of Mexico (GOM) As reported by the TCR on Nov. 6, 2012, Standard & Poor's Ratings Services raised its corporate credit rating on Houston-based Hercules Offshore to 'B' from 'B-'. "The upgrade reflects the improving market conditions in the Gulf of Mexico and our expectations that Hercules' fleet will continue to benefit," said Standard & Poor's credit analyst Stephen Scovotti. HOLLY CREST: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Holly Crest, LLC 8400 Callie Avenue, Unit 409 Morton Grove, IL 60646 Bankruptcy Case No.: 13-33497 Chapter 11 Petition Date: August 22, 2013 Court: U.S. Bankruptcy Court Northern District of Illinois (Chicago) Judge: Janet S. Baer Debtor's Counsel: O. Allan Fridman, Esq. LAW OFFICE OF O. ALLAN FRIDMAN 555 Skokie Boulevard, Suite 500 Northbrook, IL 60062 Tel: (847) 412-0788 Fax: (847) 412-0898 E-mail: allanfridman@gmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Company's list of its largest unsecured creditors filed with the petition does not contain any entry. HORIYOSHI WORLDWIDE: Delays Form 10-Q for Second Quarter -------------------------------------------------------- Horiyoshi Worldwide, Inc., informed the U.S. Securities and Exchange Commission it could not complete the filing of its quarterly report on Form 10-Q for the period ended June 30, 2013, due to a delay in obtaining and compiling information required to be included in the Company's Form 10-Q. In accordance with Rule 12b-25 of the Securities Exchange Act of 1934, as amended, the Company will file its Form 10-Q no later than the fifth calendar day following the prescribed due date. About Horiyoshi Worldwide Los Angeles, Calif.-based Horiyoshi Worldwide, Inc., is a clothing and accessories design and distribution company whose products are inspired by the artwork of Japanese master tattoo artist Yoshihito Nakano -- better known as Horiyoshi III. Horiyoshi Worldwide disclosed a net loss of $3 million in 2012 as compared with a net loss of $2.89 million in 2011. The Company's balance sheet at March 31, 2013, showed $1.03 million in total assets, $2.54 million in total liabilities and a $1.51 million total stockholders' deficit. EFP Rotenberg, LLP, in Rochester, New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that as of Dec. 31, 2012, the Company has accumulated losses of $6,747,446 since inception. The company intends to fund operations through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year ending Dec. 31, 2013. In response to these problems, management intends to raise additional funds through public or private placement offerings. These factors, among others, raise substantial doubt about the company's ability to continue as a going concern. HORNE INTERNATIONAL: Delays Form 10-Q for Second Quarter -------------------------------------------------------- Due to extremely reduced staffing levels, Horne International, Inc., experienced delays in closing its quarter, and consequently the Company's independent registered public accounting firm was unable to complete its review of the Company's quarterly report on Form 10-Q within the prescribed time period without unreasonable effort or expense. The Form 10-Q will be filed no later than the fifth calendar day following the prescribed due date. About Horne International Fairfax, Va.-based Horne International, Inc., is an engineering services company focused on provision of integrated, systems approach based solutions to the energy and environmental sectors. Stegman & Company, in Baltimore, Maryland, expressed substantial doubt about Horne International's ability to continue as a going concern. The independent auditors noted that the Company has experienced continuing net losses for each of the last four years and as of Dec. 31, 2012, current liabilities exceeded current assets by $2.26 million. The Company reported a net loss of $1.6 million on $4.1 million of revenue in 2012, compared with a net loss of $121,000 on $5.7 million of revenue in 2011. The Company's balance sheet at Dec. 31, 2012, showed $1.2 million in total assets, $3.2 million in total liabilities, and a stockholders' deficit of $2.0 million. HUBER RENTAL: Case Summary & 8 Unsecured Creditors -------------------------------------------------- Debtor: Huber Rental Properties, LLC aka Huber Houses 203 South 6th Street Arkadelphia, AR 71923 Bankruptcy Case No.: 13-72896 Chapter 11 Petition Date: August 22, 2013 Court: U.S. Bankruptcy Court Western District of Arkansas (Hot Springs) Judge: Richard D. Taylor Debtor's Counsel: O. C. Rusty Sparks, Esq. O.C. "RUSTY" SPARKS, P.A. 620 West Third Street, Suite 100 Little Rock, AR 72201 Tel: (501) 376-0550 E-mail: rustysparks@msn.com Scheduled Assets: $5,705,131 Scheduled Liabilities: $3,318,317 A copy of the Company's list of its largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/arwb13-72896.pdf The petition was signed by Jonathan B. Huber, managing member. HUSTAD INVESTMENT: Wants Case Conversion Motion Denied ------------------------------------------------------ Hustad Investment Corporation, et al., ask the U.S. Bankruptcy Court for the District of Minnesota to deny the U.S. Trustee's motion to dismiss or convert the Chapter 11 case to one under Chapter 7 of the Bankruptcy Code. The U.S. Trustee asserted that cause to convert the case is shown by, among other things: -- the absence of operating cash in the cases coupled with the difficulties the Debtors have faced in selling properties of the estate to pay debt and generate operating cash; -- ongoing losses to the estate and an absence of a reasonable likelihood of rehabilitation; and -- mismanagement of the Debtors. The Debtors argue that, among other things: 1. the financial wherewithal to execute the Debtors' plan to develop their properties is obtainable; and 2. the Debtors has filed a plan on July 29, 2013, which provides that a cash infusion of $4 million into the Debtors will be made at confirmation by FiberPop Solutions, LLC, an entity owned by James Louks. A hearing on the adequacy of information in the disclosure statement is set for Aug. 28. About Hustad Investment Hustad Investment Corp., Hustad Investments LP, and Hustad Real Estate Company sought Chapter 11 protection (Bankr. D. Minn. Lead Case No. 13-40789) in Minneapolis on Feb. 20, 2013. The Debtors are engaged in the business of real estate investment. The Debtors own, among others, a commercial development consisting of 8 acres in Eden Prairie, Minnesota, called Bluff Country Village, and a mixed-use development consisting of 110+/- acres in Maple Grove, Minnesota. The majority of Bluff Country Village is owned by HIC, but some of that property is owned by HRE. The Maple Grove Property is owned by HILP. Both Bluff Country Village and the Maple Grove Property are subject to a first mortgage in favor of BMO Harris Bank, N.A. securing a debt of approximately $12.4 million. The Chapter 11 cases were filed on the eve of a sheriff's sale scheduled by BMO in connection with foreclosure of its mortgage. HILP estimated less than $50 million in assets and liabilities. HRE estimated less than $10 million in assets and less than $50 million in liabilities. HIC disclosed $12,941,736 in assets and $15,022,204 in liabilities as of the Chapter 11 filing. The Debtors are represented by Michael L. Meyer, Esq., at Ravich Meyer Kirkman McGrath Nauman, in Minneapolis. The Plan filed in the Debtors' cases provides that the Debtors will continue to operate their business in the ordinary course. Payments required by the Plan will be made from the cash flow generated by sales of the Debtors' real property and from the proceeds of the investor loan. IMH FINANCIAL: Delays Form 10-Q for Second Quarter -------------------------------------------------- IMH Financial Corporation was unable to file its quarterly report on Form 10-Q for the period ended June 30, 2013, within the prescribed time period because the Company requires additional time to finalize its analysis of certain receivables in order to ensure proper recognition of assets, revenues and expenses. Certain recent transactions and activities have caused the Company's analysis of certain assets to be more difficult to complete, thereby requiring the Company to take additional time to complete its financial information as reported on Form 10-Q. The Company intends to file all documents required for its Form 10-Q filing within five calendar days of the Aug. 14, 2013, due date. About IMH Financial Scottsdale, Ariz.-based IMH Financial Corporation was formed from the conversion of IMH Secured Loan Fund, LLC, or the Fund, a Delaware limited liability company, on June 18, 2010. The conversion was effected following a consent solicitation process pursuant to which approval was obtained from a majority of the members of the Fund to effect the Conversion Transactions and involved (i) the conversion of the Fund from a Delaware limited liability company into a Delaware corporation named IMH Financial Corporation, and (ii) the acquisition by the Company of all of the outstanding shares of the manager of the Fund Investors Mortgage Holdings Inc., or the Manager, as well as all of the outstanding membership interests of a related entity, IMH Holdings LLC, or Holdings on June 18, 2010. The Company is a commercial real estate lender based in the southwest United States with over 12 years of experience in many facets of the real estate investment process, including origination, underwriting, documentation, servicing, construction, enforcement, development, marketing, and disposition. The Company focuses on a niche segment of the real estate market that it believes is underserved by community, regional and national banks: high yield, short-term, senior secured real estate mortgage loans. The intense level of underwriting analysis required in this segment necessitates personnel and expertise that many community banks lack, yet the requisite localized market knowledge of the underwriting process and the size of the loans the Company seeks often precludes the regional and community banks from efficiently entering this market. IMH Financial disclosed a net loss of $32.19 million in 2012, a net loss of $35.19 million in in 2011, and a net loss of $117.04 million in 2010. The Company's balance sheet at March 31, 2013, showed $227.79 million in total assets, $100.92 million in total liabilities and $126.86 millionin total stockholders' equity. INDEPENDENCE TAX IV: Incurs $185,000 Net Loss in June 30 Qtr. ------------------------------------------------------------- Independence Tax Credit Plus L.P. IV filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $185,711 on $1.05 million of total revenues for the three months ended June 30, 2013, as compared with net income of $1.95 million on $1.03 million of total revenues for the same period during the prior year. As of June 30, 2013, showed $8.86 million in total assets, $27.95 million in total liabilities and a $19.09 million total partner's deficit. "At June 30, 2013, the Partnership's liabilities exceeded assets by $19,096,526 and for the three months ended June 30, 2013, the Partnership had net loss of $(185,711). These factors raise substantial doubt about the Partnership's ability to continue as a going concern," the Company said in the filing. A copy of the Form 10-Q is available for free at: http://is.gd/U4cE8s New York-based Independence Tax Credit Plus L.P. IV is a limited partnership which was formed under the laws of the State of Delaware on Feb, 22, 1995. On July 6, 1995, the Partnership commenced a public offering of Beneficial Assignment Certificates representing assignments of limited partnership interests in the Partnership. The Partnership received $45,844,000 of gross proceeds from the Offering from 2,759 investors. The Offering was terminated on May 22, 1996. The Partnership's initial business was to invest in other partnerships owning leveraged apartment complexes that are eligible for the low-income housing tax credit enacted in the Tax Reform Act of 1986, some of which may also be eligible for the historic rehabilitation tax credit. The Partnership is currently in the process of developing a plan to dispose of all of its investments. It is anticipated that this process will take a number of years. The Partnership reported a net loss of $967,365 on $4.2 million of revenues in fiscal 2013, compared with net income of $970,124 on $4.1 million of revenues in fiscal 2012. INFUSYSTEM HOLDINGS: Amends 2007 Stock Incentive Plan ----------------------------------------------------- InfuSystem Holdings, Inc.'s Board of Directors approved the adoption of amendments to its 2007 Stock Incentive Plan. Key amendments to the Plan provide that: * The Compensation Committee will determine the exercise price of any stock options or stock appreciation rights issued under the Plan, provided that the exercise price must be at or above the average closing price of the Company's common stock for the five most recent trading days prior to the date of grant. Prior to this amendment, the Plan did not specify any limitations on the minimum exercise price for stock options or stock appreciation rights; * Except in connection with certain significant corporate events, such as reorganizations and mergers, without stockholder approval, outstanding stock options or stock appreciation rights may not be repriced nor exchanged for either cash or substitute awards with a lower, or no, exercise price. Previously, the Plan expressly permitted the Committee to reprice outstanding awards under the Plan; * Further restricted stock awards granted under the Plan will reduce the total number of shares remaining available for grant under the Plan at a rate of two shares per one restricted share granted; and * Each Plan participant is responsible for his/her own tax and exercise price obligations in respect of awards under the Plan and the Company will not reimburse an award to satisfy tax or exercise price obligations. The Plan still permits the cashless exercise of stock options and other awards and the satisfaction of tax withholding amounts by surrendering shares covered by the award to the Company. Previously, the Plan did not expressly prohibit tax gross-ups for awards. "These changes are consistent with the Board's actions initiated in May 2012 following the Company's change of control and reinforce our desire to align with corporate governance best practices," stated InfuSystem Chairman Ryan Morris. "We will continue to diligently explore future modifications, as appropriate." Additional information is available for free at: http://is.gd/UeTE76 About InfuSystem Holdings InfuSystem Holdings, Inc., operates through operating subsidiaries, including InfuSystem, Inc., and First Biomedical, Inc. InfuSystem provides infusion pumps and related services. InfuSystem provides services to hospitals, oncology practices and facilities and other alternate site healthcare providers. Headquartered in Madison Heights, Michigan, InfuSystem delivers local, field-based customer support, and also operates pump service and repair Centers of Excellence in Michigan, Kansas, California, and Ontario, Canada. Infusystem Holdings disclosed a net loss of $1.48 million in 2012, as compared with a net loss of $45.44 million in 2011. The Company's balance sheet at March 31, 2013, showed $76.22 million in total assets, $35.70 million in total liabilities and $40.52 million in total stockholders' equity. INTERLEUKIN GENETICS: Incurs $1.7 Million Net Loss in Q2 -------------------------------------------------------- Interleukin Genetics, Inc., reported a net loss of $1.77 million on $852,128 of total revenue for the three months ended June 30, 2013, as compared with a net loss of $1.22 million on $799,435 of total revenue for the same period during the prior year. For the six months ended June 30, 2013, the Company reported a net loss of $2.97 million on $1.33 million of total revenue, as compared with a net loss of $2.64 million on $1.47 million of total revenue for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $12.24 million in total assets, $8.45 million in total liabilities and $3.78 million in total shareholders' equity. A copy of the press release is available for free at: http://is.gd/XSY9kR Interleukin Genetics registered with the SEC 11.3 million shares of the Company's common stock issuable under the 2013 Employee, Director and Consultant Equity Incentive Plan. The proposed maximum aggregate offering price is $4.51 million. A copy of the Form S-8 prospectus is available for free at http://is.gd/PWPqEQ About Interleukin Waltham, Mass.-based Interleukin Genetics, Inc., is a personalized health company that develops unique genetic tests to provide information to better manage health and specific health risks. Interleukin Genetics disclosed a net loss of $5.12 million in 2012, as compared with a net loss of $5.02 million in 2011. Grant Thornton 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 the Company incurred a net loss of $5,120,084 during the year ended December 31, 2012, and as of that date, the Company's total liabilities exceeded its total assets by $13,623,800. These conditions, among other factors, raise substantial doubt about the Company's ability to continue as a going concern. Bankruptcy Warning "We have retained a financial advisor and are actively seeking additional funding, however, based on current economic conditions, additional financing may not be available, or, if available, it may not be available on favorable terms. In addition, the terms of any financing may adversely affect the holdings or the rights of our existing shareholders. For example, if we raise additional funds by issuing equity securities, further dilution to our then- existing shareholders will result. Debt financing, if available, may involve restrictive covenants that could limit our flexibility in conducting future business activities. We also could be required to seek funds through arrangements with collaborators or others that may require us to relinquish rights to some of our technologies, tests or products in development. Our common stock was delisted from the NYSE Amex in 2010 and is currently trading on the OTCQBTM. As a result, our access to capital through the public markets may be more limited. If we cannot obtain additional funding on acceptable terms, we may have to discontinue operations and seek protection under U.S. bankruptcy laws," the Company said in its quarterly report for the ended March 31, 2013. INTERSTATE PROPERTIES: Court Cites Pre-Conditions to Dismissal -------------------------------------------------------------- Based on the presentations by counsel for Interstate Properties, LLC, the U.S. Trustee, and senior secured creditor American National Insurance Company ("ANICO"), at hearings held on July 8, 2013, and Aug. 19, 2013, on the motion of the Debtor for the dismissal of its Chapter 11 case, ANICO's agreement to withdraw its objection to the Motion, the U.S. Bankruptcy Court for the Northern District of Georgia, on August 23, ordered that after the Debtor obtains funds from UBS, the Debtor is authorized and directed to pay or cause UBS to pay the Debtor's Loan Payment Amount of $13,230,460.39 to ANICO in certifiable funds. Further, the Court ordered that the Debtor's Bankruptcy case will be dismissed, provided that, the following conditions are first satisfied: (i) the motion of the Debtor's affiliate, Emerald Coast Hospitality, LLC, for the dismissal of its Chapter 11 case is also granted under terms and conditions as those set forth is this Order; (ii) the Debtor pays or causes UBS to pay the Debtor's Loan Payoff Amount to ANICO in certifiable funds; (iii) the Debtor pays or causes UBS to pay Emerald's Loan Payoff Amount of $11,222,823.54 to ANICO in certifiable funds; (iv) the Debtor pays $975 in quarterly fees due and owing to the United States Trustee; (v) the Debtor's counsel executes an affidavit indicating the Debtor has satisfied all of the conditions set forth in this paragraph within three days of the satisfaction of the conditions; and (vi) the conditions set forth is this Order occur within 30 days of entry of this Order. About Interstate Properties Interstate Properties, LLC, filed a Chapter 11 petition (Bankr. N.D. Ga. Case No. 12-76037) in Atlanta on Oct. 17, 2012. Judge Margaret Murphy presides over the case. George M. Geeslin, Esq., who has an office in Atlanta, Georgia, serves as the Debtor's bankruptcy counsel. The Debtor owns and operates, among others, two shopping centers, one located in Elkview, West Virginia, and one located in Decatur, Georgia. In its schedules, as amended, the Debtor disclosed $73,002,403 in total assets and $62,264,480 in total liabilities. IPC INTERNATIONAL: Seeks to Sell Assets to UPS for $21.3-Mil. ------------------------------------------------------------- IPC International Corporation and The Security Network Holdings Corporation seek permission from the U.S. Bankruptcy Court for the District of Delaware to sell substantially all of the assets used to operate their standing guard and patrol business to Universal Protection Services for $21,250,000. In addition to the cash price, under the purchase agreement, UPS will also assume (i) specified obligations of IPC under certain contracts with customers of its standing guard and patrol business and (ii) specified liabilities of IPC under certain capital equipment leases and other leases and contracts designated by UPS valued at $2.9 million. The Purchase Agreement provides various bid protections to UPS, including in a $600,000 Break-Up Fee and up to $250,000 Expense Reimbursement, both of which will be paid to UPS if UPS is not highest bidder at the auction, regardless of whether a Sale to an alternate bidder is consummated. While the Debtors believe that the UPS Purchase Agreement is fair and reasonable, the best interest of their estates are serve by conducting a public auction to identify the highest or otherwise the best offer for the assets. Accordingly, the Debtors also ask the Court to approve procedures governing the auction and sale of their assets to the qualified bidder with the highest or best bid. The Debtors propose the following deadlines: Sept. 16, 2013 -- Deadline for submitting bid packages Sept. 18, 2013 -- Auction Sept. 25, 2013 -- Sale hearing PSC: Break-Up Fee Chills Bidding Professional Security Consultants, who negotiated with the Debtors prepetition to purchase their assets and says it intends to bid at the proposed sale, complains that the proposed break-up fee is excessive and will chill bidding by other interested buyers. PSC further complains that the proposed Break-Up Fee appears to design to lock up the sale for UPS. Other bidders will be discouraged from participating in the auction and the ultimate result will be to reduce the funds available for the creditors of the Debtors' estates, PSC asserts. Jeremy W. Ryan, Esq. -- jryan@potteranderson.com -- and Etta R. Mayers, Esq. -- emayers@potteranderson.com -- at POTTER ANDERSON & CORROON LLP, in Wilmington, Delaware, and Paul V. Possinger, Esq. -- ppossinger@proskauer.com -- and Brandon W. Levitan, Esq. -- blevitan@proskauer.com -- at PROSKAUER ROSE LLP, in Chicago, Illinois, are proposed counsel for the Debtors. PSC is represented by Jeffrey M. Schlef, Esq. -- jschlerf@foxrothschild.com -- John H. Strock, Esq. -- jstrock@foxrothschild.com -- and L. John Bird, Esq. -- jbird@foxrothschild.com -- at Fox Rothschild LLP, in Wilmington, Delaware; and Bernard R. Given, II, Esq., and Jeanne C. Wanlass, Esq., at Loeb & Loeb LLP, in Los Angeles, California. About IPC International IPC International Corp., a provider of security services for 350 shopping malls, filed a petition for Chapter 11 protection (Bankr. D. Del. Case No. 13-bk-12050) on Aug. 9, 2013, in Delaware after signing a contract for Universal Protection Services LLC to buy the business for $21.3 million plus assumption of specified liabilities. Scott M. Strong signed the petition as chief financial officer. The Debtor estimated assets and debts of at least $10 million. Jeremy William Ryan, Esq., and Etta Ren Wolfe, Esq., at POTTER ANDERSON & CORROON, LLP, serves as the Debtor's counsel. Proskauer Rose, LLP, serves as the Debtor's general bankruptcy counsel. Silverman Consulting, LLC, acts as the Debtor's financial advisor and Livingstone Partners, LLP, serves as the Debtor's investment banker. KCC is the Debtor's noticing, claims and balloting agent. Judge Mary F. Walrath presides over the case. The petition shows assets and liabilities both exceeding $10 million. Liabilities include $6.9 million on a revolving credit and $10.4 million on term loans owing to PrivateBank & Trust Co., as agent. Bankruptcy was the result of losses on a U.K. affiliate that was sold, as well as competition and the cost of liability insurance. IPC INTERNATIONAL: Has Interim Authority to Tap $8MM in DIP Loans ----------------------------------------------------------------- Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware gave interim authority to IPC International Corporation and The Security Network Holdings Corporation to access $8 million of the $12 million senior secured postpetition loan agreement with the PrivateBank and Trust Company. On the earliest of: (a) Jan. 31, 2014; (b) the occurrence of the effective date under any plan of reorganization or liquidation; (c) the occurrence of an event of default; and (d) the closing of a sale or any other disposition by the Debtors of their assets, the Debtors will be required to repay the DIP Lender in full and in cash all outstanding DIP obligations. The DIP Lender is granted security interests in and liens and mortgages on all of the Debtors' property, which liens are subordinate to the Carve-Out. All DIP Obligations will constitute allowed superpriority administrative expense claims, subject to the Carve-Out. The Carve-Out means any unpaid professional fees and expenses that were incurred but not paid as of the date of the Cash Collateral Termination Event and any professional fees and expenses incurred after the Cash Collateral Termination Event in an aggregate amount not to exceed $100,000. The final hearing is scheduled for Sept. 3, 2013, at 2:00 p.m. (prevailing Eastern Time). Objections are due Aug. 27. About IPC International IPC International Corp., a provider of security services for 350 shopping malls, filed a petition for Chapter 11 protection (Bankr. D. Del. Case No. 13-bk-12050) on Aug. 9, 2013, in Delaware after signing a contract for Universal Protection Services LLC to buy the business for $21.3 million plus assumption of specified liabilities. Scott M. Strong signed the petition as chief financial officer. The Debtor estimated assets and debts of at least $10 million. Jeremy William Ryan, Esq., and Etta Ren Wolfe, Esq., at POTTER ANDERSON & CORROON, LLP, serves as the Debtor's counsel. Proskauer Rose, LLP, serves as the Debtor's general bankruptcy counsel. Silverman Consulting, LLC, acts as the Debtor's financial advisor and Livingstone Partners, LLP, serves as the Debtor's investment banker. KCC is the Debtor's noticing, claims and balloting agent. Judge Mary F. Walrath presides over the case. The petition shows assets and liabilities both exceeding $10 million. Liabilities include $6.9 million on a revolving credit and $10.4 million on term loans owing to PrivateBank & Trust Co., as agent. Bankruptcy was the result of losses on a U.K. affiliate that was sold, as well as competition and the cost of liability insurance. IPC, based in Bannockburn, Illinois, is asking the bankruptcy judge to approve auction procedures under which competing bids would be due on Sept. 16, followed by an auction on Sept. 18 and a hearing on Sept. 25 to approve sale. Even without a higher bid at auction, the price will be sufficient to pay secured creditors in full along with expenses of the bankruptcy. Unsecured creditors should receive some recovery from the sale. IPC INTERNATIONAL: Can Use Cash Collateral Until January 2014 ------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware gave interim authority to IPC International Corporation and The Security Network Holdings Corporation to use cash collateral securing their prepetition indebtedness. The Debtors' authority to use Cash Collateral will terminate on the earliest to occur of: (a) Jan. 31, 2014; (b) the occurrence of the effective date under any plan of reorganization or liquidation; (c) the occurrence of an event of default; and (d) the closing of a sale or any other disposition by the Debtors of their assets, the Debtors will be required to repay the DIP Lender in full and in cash all outstanding DIP obligations. The Prepetition Secured Lender will be granted adequate protection liens, junior in priority to the Carve-Out, DIP Liens and other permitted liens, and adequate protection priority claim, junior in priority to the Carve-Out, the DIP Superpriority Claim and senior to all other administrative claims. The final hearing is scheduled for Sept. 3, 2013, at 2:00 p.m. (prevailing Eastern Time). Objections are due Aug. 27. About IPC International IPC International Corp., a provider of security services for 350 shopping malls, filed a petition for Chapter 11 protection (Bankr. D. Del. Case No. 13-bk-12050) on Aug. 9, 2013, in Delaware after signing a contract for Universal Protection Services LLC to buy the business for $21.3 million plus assumption of specified liabilities. Scott M. Strong signed the petition as chief financial officer. The Debtor estimated assets and debts of at least $10 million. Jeremy William Ryan, Esq., and Etta Ren Wolfe, Esq., at POTTER ANDERSON & CORROON, LLP, serves as the Debtor's counsel. Proskauer Rose, LLP, serves as the Debtor's general bankruptcy counsel. Silverman Consulting, LLC, acts as the Debtor's financial advisor and Livingstone Partners, LLP, serves as the Debtor's investment banker. KCC is the Debtor's noticing, claims and balloting agent. Judge Mary F. Walrath presides over the case. The petition shows assets and liabilities both exceeding $10 million. Liabilities include $6.9 million on a revolving credit and $10.4 million on term loans owing to PrivateBank & Trust Co., as agent. Bankruptcy was the result of losses on a U.K. affiliate that was sold, as well as competition and the cost of liability insurance. IPC, based in Bannockburn, Illinois, is asking the bankruptcy judge to approve auction procedures under which competing bids would be due on Sept. 16, followed by an auction on Sept. 18 and a hearing on Sept. 25 to approve sale. Even without a higher bid at auction, the price will be sufficient to pay secured creditors in full along with expenses of the bankruptcy. Unsecured creditors should receive some recovery from the sale. IZEA INC: Amends First Quarter Form 10-Q ---------------------------------------- Izea, Inc., filed an amendment to its quarterly report on Form 10-Q for the period ended June 30, 2013, originally filed with the U.S. Securities and Exchange Commission on Aug. 14, 2013, primarily to furnish Exhibit 101 XBRL (eXtensible Business Reporting Language) to the Form 10-Q in accordance with Rule 405 of Regulation S-T. A copy of the amended Form 10-Q is available for free at http://is.gd/MYlJt0 About IZEA, Inc. IZEA, Inc., headquartered in Orlando, Fla., believes it is a world leader in social media sponsorships ("SMS"), a rapidly growing segment within social media where a company compensates a social media publisher to share sponsored content within their social network. The Company accomplishes this by operating multiple marketplaces that include its platforms SocialSpark, SponsoredTweets and WeReward, as well as its legacy platforms PayPerPost and InPostLinks. The Company has incurred significant losses from operations since inception and has an accumulated deficit of $20.9 million as of June 30, 2012. The Company's balance sheet at March 31, 2013, showed $1.01 million in total assets, $2.96 million in total liabilities and a $1.94 million total stockholders' deficit. Cross, Fernandez & Riley, LLP, in Orlando, Florida, expressed substantial doubt about IZEA's ability to continue as a going concern, following the Company's results for the fiscal year ended Dec. 31, 2011. The independent auditors noted that the Company has incurred recurring operating losses and had an accumulated deficit at Dec. 31, 2011, of $18.1 million. J.C. PENNEY: Pershing Square Held 17.7% Equity Stake at Aug. 12 --------------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Pershing Square Capital Management, L.P., and its affiliates disclosed that as of Aug. 12, 2013, they beneficially owned 39,075,771 shares of common stock of J.C. Penney Company, Inc., representing 17.7 percent of the shares outstanding based on 220,298,991 shares of the common stock, 50 cents par value, of the Company outstanding as of June 7, 2013, as reported in J.C. Penney's quarterly report on Form 10-Q, filed on June 11, 2013. A copy of the regulatory filing is available for free at http://is.gd/bFe3nF 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 of May 4, 2013, the Company had $10.37 billion in total assets, $7.50 billion in total liabilities and $2.86 billion in total stockholders' equity. * * * The Company carries Moody's Investors Service's B3 Corporate Family Rating with negative outlook. 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. KIDSPEACE CORP: Has Court Authority to Employ Grant Thornton ------------------------------------------------------------ Judge Richard E. Fehling of the U.S. Bankruptcy Court for the Eastern District of Pennsylvania authorized KidsPeace Corporation, et al., to employ Grant Thornton LLP to provide accounting, tax and advisory services, nunc pro tunc to the Petition Date. The services are likely to include, but are not limited to, the following: (a) audit the consolidated balance sheet of the Debtors as of December 31, 2012; (b) perform a limited scope audit of the financial statements of the KidsPeace Tax Deferred Annuity Plan; (c) perform a limited scope audit of the financial statements of the KidsPeace Defined Benefit Retirement Plan; and (d) provide other related services as may be requested by the Debtors and as agreed to by Grant Thornton. Michael Sorelle, a partner in the accounting, tax and advisory firm of Grant Thornton LLP, is the primary professional responsible for representing the Debtors. Mr. Sorelle will be paid $555 per hour for his services. Mr. Sorelle will be assisted by other Grant Thornton professionals to be paid the following hourly rates: Services Name Hourly Rate -------- ---- ----------- Audit Partner $555-$745 Managing Director/Director $475-$710 Senior Manager $415-$680 Senior $225-$455 Associate $185-$340 Audit/Tax Paraprofessional $130 Clerical $75 Tax Partner/Principal $590-$790 Managing Director/Director $550-$575 Senior Manager $460-$575 Manager $510-$525 Senior $345-$440 Associate $245-$280 The firm will also be reimbursed for any necessary out-of-pocket expenses. Mr. Sorelle assured the Court that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. In the one year period prior to the Petition Date, Grant Thornton received payments aggregating in the approximate amount of $259,606 from the Debtors for services rendered. Joseph R. Zapata, Jr., Esq., at NORRIS, McLAUGHLIN & MARCUS, PA, in Allentown, Pennsylvania, represents the Debtors. About KidsPeace Corp. KidsPeace Corp., a provider of behavioral services for children, filed a petition for Chapter 11 reorganization (Bankr. E.D. Pa. Case No. 13-14508) on May 21, 2013, in Reading, Pennsylvania. KidsPeace operates a 96-bed pediatric psychiatric hospital in Orefield, Pennsylvania. Assets are $86.7 million, and debt on the books is $158.6 million, according to a court filing. The Debtor, which sought bankruptcy protection with eight affiliates, tapped Norris McLaughlin & Marcus, P.A. as counsel; EisnerAmper LLP as financial advisor, and Rust Omni as claims and notice agent. Assets total $158,587,999 at the end of 2012. The Debtors owe approximately $56,206,821 in bond debt, and they have been told that their pension liability is allegedly about $100,000,000 of which the Debtors currently reflect $83,049,412 on their books. KidsPeace sought Chapter 11 (i) as a means to implement a negotiated restructuring of bond debt currently aggregating approximately $51,310,000 plus accrued interest to a reduced amount of approximately $24 million in new 30-year bonds with interest at 7.5 percent, and (ii) to continue on-going negotiations with the Pension Benefit Guaranty Corporation in hopes of reducing the PBGC asserted obligation of $100+ million to an amount that the Debtors can reasonably expect to satisfy. The Debtor disclosed $157,930,467 in assets and $168,768,207 in liabilities as of the Chapter 11 filing. Since March 2012, MK has been exploring possible affiliation or acquisition opportunities; however, no offer of an affiliation or acquisition has been presented to the Debtors. Gemino Healthcare Finance, LLC, the prepetition revolving lender, is represented by James S. Rankin, Jr., Esq., at Parker, Hudson, Rainer & Dobbs LLP; and Weir & Partners LLP's Walter Weir, Jr., Esq. UMB Bank, N.A., on behalf of bondholders, Performance Food Group d/b/a AFI, W.B. Mason Co., Inc., Pension Benefit Guaranty Corporation, and Teresa Laudenslager were appointed to an official committee of unsecured creditors in the Debtors' cases. The Official Committee of Unsecured Creditors is represented by Fitzpatrcik Lentz & Bubba, P.C., and Lowenstein Sandler LLP as counsel. FTI Consulting, Inc. serves as the panel's financial advisor. KIDSPEACE CORP: Hearing on Bid to Terminate Ombudsman on Sept. 3 ---------------------------------------------------------------- The hearing to consider KidsPeace Corporation, et al.'s motion to terminate the U. S. Trustee's appointment of a patient care ombudsman is rescheduled and will now be held on Sept. 3, 2013, at 11:00 a.m., before the Honorable Richard E. Fehling of the U.S. Bankruptcy Court for the Eastern District of Pennsylvania. As previously reported by The Troubled Company Reporter, the Debtors asked the Court to terminate the PCO for, among other things, the U.S. Trustee innocently, negligently or intentionally misrepresented her intentions to impose limitations on the PCO's engagement and in reliance on the Debtors' counsel consented to an order authorizing the appointment of a PCO, which he would not otherwise have done. In the alternative, should the Court be inclined to continue the PCO's appointment, the Debtors asserted that it is essential that limits be imposed on the scope of the PCO's duties and that there be a cap on his fees and expenses. The PCO's application to retain Bryan Cave LLP as counsel and its motion to access patient health information will also be heard on Sept. 3. Roberta A. DeAngelis, U.S. Trustee for Region 3, is represented by Dave P. Adams, Esq., in Philadelphia, Pennsylvania. About KidsPeace Corp. KidsPeace Corp., a provider of behavioral services for children, filed a petition for Chapter 11 reorganization (Bankr. E.D. Pa. Case No. 13-14508) on May 21, 2013, in Reading, Pennsylvania. KidsPeace operates a 96-bed pediatric psychiatric hospital in Orefield, Pennsylvania. Assets are $86.7 million, and debt on the books is $158.6 million, according to a court filing. The Debtor, which sought bankruptcy protection with eight affiliates, tapped Norris McLaughlin & Marcus, P.A. as counsel; EisnerAmper LLP as financial advisor, and Rust Omni as claims and notice agent. Assets total $158,587,999 at the end of 2012. The Debtors owe approximately $56,206,821 in bond debt, and they have been told that their pension liability is allegedly about $100,000,000 of which the Debtors currently reflect $83,049,412 on their books. KidsPeace sought Chapter 11 (i) as a means to implement a negotiated restructuring of bond debt currently aggregating approximately $51,310,000 plus accrued interest to a reduced amount of approximately $24 million in new 30-year bonds with interest at 7.5 percent, and (ii) to continue on-going negotiations with the Pension Benefit Guaranty Corporation in hopes of reducing the PBGC asserted obligation of $100+ million to an amount that the Debtors can reasonably expect to satisfy. The Debtor disclosed $157,930,467 in assets and $168,768,207 in liabilities as of the Chapter 11 filing. Since March 2012, MK has been exploring possible affiliation or acquisition opportunities; however, no offer of an affiliation or acquisition has been presented to the Debtors. Gemino Healthcare Finance, LLC, the prepetition revolving lender, is represented by James S. Rankin, Jr., Esq., at Parker, Hudson, Rainer & Dobbs LLP; and Weir & Partners LLP's Walter Weir, Jr., Esq. UMB Bank, N.A., on behalf of bondholders, Performance Food Group d/b/a AFI, W.B. Mason Co., Inc., Pension Benefit Guaranty Corporation, and Teresa Laudenslager were appointed to an official committee of unsecured creditors in the Debtors' cases. The Official Committee of Unsecured Creditors is represented by Fitzpatrcik Lentz & Bubba, P.C., and Lowenstein Sandler LLP as counsel. FTI Consulting, Inc. serves as the panel's financial advisor. KINGSBURY CORP: Plan Outline Hearing Continued to Sept. 25 ---------------------------------------------------------- The U.S. Bankruptcy Court for the District of New Hampshire continued to Sept. 25, 2013, 9 a.m., the hearing on the adequacy of information in the disclosure statement explaining Kingsbury Corporation, et al.'s Plan of Liquidation. As reported in the May 7, 2013 edition of the Troubled Company Reporter, KMTC, f/k/a Kingsbury Corporation, Donson Group, Ltd., and Ventura Industries, LLC, proposed a liquidating plan, which provides for the sale of Kingsbury's real estate located at 80 Laurel Street, Keene, New Hampshire. Secured claims will be paid in full from the sale proceeds, or holders of secured claims will retain their liens in the real estate and their allowed secured claims will be satisfied from the real estate proceeds. General unsecured claims will be paid in full, while interests will be cancelled and holders of interests will take nothing under the Plan. A full-text copy of the Disclosure Statement dated April 22, 2013, is available for free at: http://bankrupt.com/misc/KINGSBURYCORPds0422.pdf About Kingsbury Corp. Kingsbury Corp. -- http://www.kingsburycorp.com/-- makes and assembles machine systems. Kingsbury and affiliate Ventura Industries, LLC, filed Chapter 11 petition (Bankr. D. N.H. Case Nos. 11-13671 and 11-13687) on Sept. 30, 2011. Maire B. Corcoran, Esq., Robert J. Keach, Esq., Jessica A. Lewis, Esq., and Jennifer Rood, Esq., at Berstein, Shur, Sawyer & Nelson, serve as counsel to the Debtors. Donnelly Penman & Partners serves as its investment banker. In its schedules, the Debtor disclosed $10,134,679 in assets, and $24,534,973 in liabilities as of the petition date. William K. Harrington, the U.S. Trustee for Region 1, appointed five members to serve on the Official Committee of Unsecured Creditors. Steven C. Reingold, Esq., at Jager Smith P.C., represents the Official Committee of Unsecured Creditors as counsel. LDK SOLAR: To Release Second Quarter Results Today -------------------------------------------------- LDK Solar Co., Ltd., will report financial results for the second quarter ended June 30, 2013, before the market opens on Tuesday, Aug. 27, 2013. The company will host a corresponding conference call and live webcast at 8:00 a.m. Eastern Time (ET) the same day. To listen to the live conference call, please dial 1-877-941-2068 (within U.S.) or 1-480-629-9712 (outside U.S.) at 8:00 a.m. ET on Aug. 27, 2013. An audio replay of the call will be available through Sept. 6, 2013, by dialing 800-406-7325 (within U.S.) or 303-590-3030 (outside U.S.) and entering the pass code 4635695#. A live webcast of the call will be available on the Company's investor relations website at http://investor.ldksolar.com. About LDK Solar LDK Solar Co., Ltd. -- http://www.ldksolar.com-- based in Hi- Tech Industrial Park, Xinyu City, Jiangxi Province, People's Republic of China, is a vertically integrated manufacturer of photovoltaic products, including high-quality and low-cost polysilicon, solar wafers, cells, modules, systems, power projects and solutions. LDK Solar was incorporated in the Cayman Islands on May 1, 2006, by LDK New Energy, a British Virgin Islands company wholly owned by Xiaofeng Peng, LDK's founder, chairman and chief executive officer, to acquire all of the equity interests in Jiangxi LDK Solar from Suzhou Liouxin Industry Co., Ltd., and Liouxin Industrial Limited. LDK Solar Co disclosed a net loss of $1.05 billion on $862.88 million of net sales for the year ended Dec. 31, 2012, as compared with a net loss of $608.95 million on $2.15 billion of net sales for the year ended Dec. 31, 2011. As of March 31, 2013, the Company had $4.99 billion in total assets, $5.29 billion in total liabilities, $356.60 million in redeemable non-controlling interests and a $660.58 million total deficit. KPMG, in Hong Kong, China, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Group has a net working capital deficit and a deficit in total equity as of Dec. 31, 2012, and is restricted from incurring additional indebtedness as it has not met a financial covenant ratio as defined in the indenture governing the RMB-denominated US$-settled senior notes. These conditions raise substantial doubt about the Group's ability to continue as a going concern. LEE'S FORD: Seeks $500,000 in DIP Loans from Community Trust Bank ----------------------------------------------------------------- Lee's Ford Dock, Inc., et al., ask the U.S. Bankruptcy Court for the Eastern District of Kentucky for authorization to obtain first-priority secured postpetition financing in the form of a $500,000 revolving line of credit from Community Trust Bank, Inc. In exchange for its agreement to provide the DIP Loan to Lee's Ford Dock, the DIP Lender requires that the remaining Debtors, the Hamilton Revocable Trust (which is the sole member of Hamilton Capital and Hamilton Brokerage), and James D. Hamilton (the Trustee of the Trust), individually, all guarantee the DIP Loan. Further, the liens of the DIP Lender on the DIP Loan Collateral will be first-priority priming liens, superior to any and all prior liens of Branch Banking and Trust Company and the U.S. Small Business Administration on the DIP Loan Collateral. The DIP Loan will bear interest at the Wall Street Journal Prime Rate, adjusted daily, with a floor of 5.75%. Interest on the outstanding balance of the DIP Loan will be due monthly, and all outstanding principal and interest will be due at maturity, which is twelve months from the issuance of the DIP Loan. The non- refundable origination fee for obtaining the DIP Loan is $5,000. Other fees and costs relating to the DIP Loan are estimated to be $18,000, for total fees and costs associated with obtaining the DIP Loan of approximately $23,000. According to papers filed with the Court on August 22, based on the appraisals obtained in July 2013 by the DIP Lender, the Debtors' assets have a total value of $15,755,000. "The prepetition amounts of the secured claims of BB&T and the SBA total approximately $9.26 million. Thus, even with the addition of the $500,000 DIP Loan, there is equity of more than $5.9 million in the Debtors' assets. The Debtors submit that this substantial equity cushion provides BB&T and the SBA with the adequate protection required by 11 U.S.C. Section 364(d)(1)(B)." "To the extent approved in subsequent cash collateral budgets, the Debtors will continue paying BB&T adequate protection payments of $15,000 per month until the Plan is confirmed, as they have throughout these bankruptcy cases, which provides additional adequate protection," the Debtors tell the Court. "The Debtors' timely payments of these monthly adequate protection amounts towards BB&T's senior lien will continue to adequately protect the interests of the SBA's junior lien." Tthe DIP Financing Motion is scheduled to be heard by the Court on Wednesday, Sept. 25, 2013, at 9:30 a.m. Counsel for the Debtors and Debtors in Possession can be reached at: Amelia Martin Adams, Esq. Laura Day DelCotto, Esq. DELCOTTO LAW GROUP PLLC 200 North Upper Street Lexington, KY 40507 Tel: (859) 231-5800 Fax: (859) 281-1179 E-mail: aadams@dlgfirm.com ldelcotto@dlgfirm.com 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. Attorneys at DelCotto Law Group PLLC, in Lexington, Ky., serve 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. Smith, Currie & Hancock LLP serves as special counsel to advise and assist the Debtor in connection with its pursuit of claims against the U.S. Army Corps of Engineers. Venters Law Office serves as special counsel to advise and assist the Debtor in connection with the prosecution and defense of general litigation matters, including the collection of unpaid boat slip rental fees, and any other specific matters in connection therewith. 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. LEE'S FORD: Chapter 11 Plan Offers Payment within 5 Years --------------------------------------------------------- Lee's Ford Dock, Inc., et al., have a bankruptcy exit plan that contemplates the continued business operations of the Debtors and the payment of all allowed claims to the extent possible over a period of time from future income and revenue. All claims other than secured Claims will be paid to the greatest extent possible within five years, according to the disclosure statement for the Debtors' proposed Chapter 11 Joint Plan of Reorganization, dated Aug. 22, 2013. "As the greatest contributing factor to the Debtors' financial distress is the lowering of Lake Cumberland, the Debtors have structured the Plan and their obligations thereunder around the anticipated return of the Lake to normal levels in summer 2014," the Debtors said. The Plan provides that the Allowed Secured Claims of Branch Banking & Trust Company in Class 1 will be repaid through regular monthly principal and interest payments, amortized over 30 years at an interest rate of 4.25%, with the entire claim to be repaid in full on or before Aug. 31, 2025, which is the end of the current term of the Corps Lease, with no prepayment penalties. Payments on the Class 1 Claims will begin on the 10th day of the month following the Effective Date and will continue to become due on the 10th day of the month thereafter until the Class 1 Claims are paid in full on or before Aug. 31, 2025. The Plan provides that the Class 1 Claims will be paid monthly payments of "interest only" beginning in the month following the Effective Date and continuing through November 2015. Thereafter, the Plan states that beginning in December 2015, BB&T will be paid combined monthly payments of principal and interest until the Class 1 Claims are paid in full. The Plan provides that the Allowed Secured Claims of the U.S. Small Business Administration in Class 2 will be repaid through regular monthly principal and interest payments, amortized over thirty (30) years at an interest rate of 4.00%, with the entire then-outstanding balance of the Class 2 Claims to become due on Sept. 24, 2037, with no prepayment penalties. Payments on the Class 2 Claims will begin on the 24th day of the month following the Effective Date and will continue to become due on the 24th day of the month thereafter until the Class 2 Claims are paid in full. The Plan provides that the SBA will receive $1,000 per year on account of the Class 2 Claims for the first 2 years following the Effective Date, with the first payment to be made on the 20th day of the month following the Effective Date and the subsequent payments to come due on the same date in the following year. Following the initial $1,000 per year period, beginning in December 2015, the Plan states that the SBA shall receive combined monthly payments of principal and interest in the amount of $20,833 until the Class 2 Claims are paid in full, with a final payment of all then-outstanding principal and interest coming due on Sept. 24, 2037. Each holder of an Allowed Unsecured Claims in Class 6, except as otherwise set forth in the Disclosure Statement, will receive distributions equal to the full Allowed amount of its Claim within 12 months following the Effective Date. As set forth in the Plan, Class 8 Claimants holding Equity Interests in the Debtors will remain otherwise unimpaired by confirmation of the Debtors' Plan, so long as the Plan is approved by the Bankruptcy Court and in accordance with the Bankruptcy Code. Except as otherwise set forth in the disclosure statement, there will be no dividends, distributions, or any other payments to or on account of the Interests until all Allowed Claims have been paid in full. A copy of the Disclosure Statement is available at: http://bankrupt.com/misc/lee'sford.doc271.pdf Counsel for the Debtors and Debtors in Possession can be reached at: Amelia Martin Adams, Esq. Laura Day DelCotto, Esq. DELCOTTO LAW GROUP PLLC 200 North Upper Street Lexington, KY 40507 Tel: (859) 231-5800 Fax: (859) 281-1179 E-mail: aadams@dlgfirm.com ldelcotto@dlgfirm.com 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. Attorneys at DelCotto Law Group PLLC, in Lexington, Ky., serve 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. Smith, Currie & Hancock LLP serves as special counsel to advise and assist the Debtor in connection with its pursuit of claims against the U.S. Army Corps of Engineers. Venters Law Office serves as special counsel to advise and assist the Debtor in connection with the prosecution and defense of general litigation matters, including the collection of unpaid boat slip rental fees, and any other specific matters in connection therewith. 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. LEHMAN BROTHERS: Sues German Entities to Recover $134MM Transfer ---------------------------------------------------------------- Law360 reported that Lehman Brothers Holdings Inc. filed suit against two German entities in New York bankruptcy court in an effort to recover $134 million in collateral the bank transferred to them just days before its historic 2008 bankruptcy filing, saying the transfer was unjustifiable. According to the report, Lehman targeted the nonprofit Klaus Tschira Foundation and investment firm Dr. HC Tschira Beteiligungs GmbH & Co. KG, seeking the return of 100 million euros (about US$134 million) that the bank transferred to the entities as additional collateral one business day before it filed for Chapter 11 bankruptcy protection. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Lehman Brothers filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 08-13555) on Sept. 15, 2008. Lehman's bankruptcy petition disclosed US$639 billion in assets and US$613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. Several other affiliates followed thereafter. Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset LLC sought for bankruptcy protection in December 2009. The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as counsel to the Official Committee of Unsecured Creditors. Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's investment banker. On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S. District Court for the Southern District of New York, entered an order commencing liquidation of Lehman Brothers, Inc., pursuant to the provisions of the Securities Investor Protection Act (Case No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as trustee for the SIPA liquidation of the business of LBI. The Bankruptcy Court approved Barclays Bank Plc's purchase of Lehman Brothers' North American investment banking and capital markets operations and supporting infrastructure for US$1.75 billion. Nomura Holdings Inc., the largest brokerage house in Japan, purchased LBHI's operations in Europe for US$2 plus the retention of most of employees. Nomura also bought Lehman's operations in the Asia Pacific for US$225 million. Lehman emerged from bankruptcy protection on March 6, 2012, more than three years after it filed the largest bankruptcy in U.S. history. The Chapter 11 plan for the Lehman companies other than the broker was confirmed in December 2011. Lehman made its first payment of $22.5 billion to creditors in April 2012, a second payment of $10.2 billion on Oct. 1, 2012, and a third distribution of $14.2 billion on April 4, 2013. The brokerage is yet to make a first distribution to non-customers, although customers are being paid in full. Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Lehman Brothers Holdings, Inc., and other insolvency and bankruptcy proceedings undertaken by its affiliates. LIBERATOR INC: Extends Maturity of Convertible Note to 2014 ----------------------------------------------------------- Liberator, Inc., on Aug. 15, 2013, reached an agreement with the holder of the 3 percent Convertible Promissory Note dated June 24, 2009, as amended, to extend the maturity date to Aug. 15, 2014, and amend the Conversion Price, as defined under the note, to $.125. A copy of Amendment No. 2 to the 3 percent Convertible Promissory Note is available for free at http://is.gd/kSj9c7 About Liberator Inc. Atlanta, Georgia-based Liberator is a vertically integrated manufacturer that designs, develops and markets products and accessories that enhance intimacy. Liberator is also a nationally recognized brand trademark, brand category and a patented line of products commonly referred to as sexual positioning shapes and sex furniture. The Company reported a net loss of $782,417 fiscal 2012, compared with a net loss of $801,252 in fiscal 2011. The Company's balance sheet at March 31, 2013, showed $3.35 million in total assets, $4.71 million in total liabilities and a $1.36 million total stockholders' deficit. Webb & Company, P.A., in Boynton Beach, Fla., expressed substantial doubt about Liberator's ability to continue as a going concern following the fiscal 2012 financial results. The independent auditors noted that the Company has a net loss of $782,417, a working capital deficiency of $1.6 million, an accumulated deficit of $7.8 million, and negative cash flow from continuing operations of $464,800. LIME ENERGY: Delays Form 10-Q for Second Quarter ------------------------------------------------ Lime Energy Co. was unable to file its Form 10-Q for the quarter ended June 30, 2013, by the Aug. 14, 2013, due date because all of the Company's resources and the resources of its independent auditors have been focused on completing the annual report on 10-K for the year ended Dec. 31, 2012, which the Company filed on July 31, 2013, and the Company's quarterly report on Form 10-Q for the quarter ended March 31, 2013, which was filed on Aug. 9, 2013. The Company is currently working on completing its quarterly report for the quarter ended June 30, 2013, and expects to file it by the extended due date of Aug. 19, 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. LMI AEROSPACE: Moody's Retains 'B1' Corp. Family Rating ------------------------------------------------------- Moody's Investors Service has revised LMI Aerospace Inc.'s speculative grade liquidity rating to SGL-3 from SGL-2 reflecting LMIA's greater than expected reliance on its revolver due to ongoing consumption of cash for working capital investment, elevated capital spending and the under performance of the recently acquired Valent operations. LMIA's B1 Corporate Family Rating, B2-PD probability of default rating and B1 rating on its $125 million revolver and $225 million term loan are unaffected at this time. The outlook remains stable. Ratings Rationale: The SGL-3 speculative grade liquidity rating incorporates Moody's view that free cash flow will be negative in 2013, with the second half of the year and 2014 becoming modestly positive. Moody's expects revolver usage to continue for the next twelve months but to begin declining starting in the fourth quarter of 2013. Progress on its efforts to integrate Valent, the unwinding of investments in working capital, and the continued growth in the Aerostructures business should drive an improvement in cash generation during this timeframe. LMIA's recent execution of the second amendment to its senior credit facilities resets covenant levels to reflect a more tempered deleveraging following its acquisition of Valent earlier this year than initially anticipated. Moody's views this action positively as it will likely provide LMIA with needed access to its revolver by eliminating covenant step-downs scheduled to start in the fourth quarter of 2013. LMIA's revision of its 2013 earnings guidance in recent weeks is meaningful and reflects weaker than anticipated performance across all of its business lines. The CFR and stable outlook anticipates that LMIA will work through its initial integration issues at Valent and other operating issues and that its exposure to both key Boeing and Gulfsteam platforms provide meaningful long term growth prospects. While credit metrics will remain weak longer than expected and liquidity has deteriorated somewhat, Moody's expects LMIA to reduce debt levels and grow both top and bottom lines over the next twelve to eighteen months. The principal methodology used in this rating was the Global Aerospace and Defense Industry Methodology published in June 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. LMI Aerospace, Inc., headquartered in St. Charles, Mo., is a provider of design engineering services and supplier of structural assemblies, kits, and components to aerospace and defense markets. On December 28, 2012, LMIA completed the acquisition of Valent Aerostructures, LLC for roughly $246 million, including assumed debt. The acquisition was primarily funded with proceeds from the $225 million term loan and $15 million of equity issued to Valent owners. Valent is a provider of complex structural components, major sub-assemblies and machined parts for OEM and Tier 1 airframe manufacturers. LMIA's revenues for 2013 are expected to exceed $400 million. LPATH INC: Offering $40 Million Class A Shares ---------------------------------------------- Lpath, Inc., is offering up to $40,000,000 of its Class A common stock, warrants and units. The Company's Class A common stock is listed on The Nasdaq Capital Market under the symbol "LPTN." On Aug. 14, 2013, the last reported sale price for the Company's Class A common stock was $5.92 per share. A copy of the Form S-3 prospectus is available for free at http://is.gd/5fP4da About Lpath, Inc. San Diego, Calif.-based Lpath, Inc. is a biotechnology company focused on the discovery and development of lipidomic-based therapeutics, an emerging field of medical science whereby bioactive lipids are targeted to treat human diseases. Lpath disclosed a net loss of $2.75 million in 2012, as compared with a net loss of $3.11 million in 2011. The Company's balance sheet at March 31, 2013, showed $23.04 million in total assets, $9.17 million in total liabilities and $13.87 million in total stockholders' equity. MACROSOLVE INC: Hood & Associates Quits Due to Limited Staffing --------------------------------------------------------------- MacroSolve, Inc., received notice of the resignation of Hood & Associates, CPAs, P.C., as its independent registered public accounting firm. Hood's resignation resulted from staffing considerations that resulted in Hood being unable to provide a concurring partner for review of the Company's financial statements. The reports of Hood on the Company's financial statements for each of the past two fiscal years contained no adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles, except as that the reports of Hood for the fiscal year ended Dec. 31, 2011, indicated conditions which raised substantial doubt about the Company's ability to continue as a going concern. During the Company's two most recent fiscal years and through Aug. 15, 2013, the Company has had no disagreements with Hood on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Hood, would have caused it to make reference to the subject matter of those disagreements in its report on the Company's financial statements for those periods. As a result of the resignation, the Company is currently unable to file the quarterly report on Form 10-Q. The Company undertakes the responsibility to file that quarterly report no later than five days after its original due date. About MacroSolve, Inc. Tulsa, Okla.-based MacroSolve, Inc. (OTC BB: MCVE) -- http://www.macrosolve.com/-- is a technology and services company that develops mobile solutions for businesses and government. A mobile solution is typically the combination of mobile handheld devices, wireless connectivity, and software that streamlines business operations resulting in improved efficiencies and cost savings. Macrosolve incurred a net loss of $1.77 million in 2012, as compared with a net loss of $2.53 million in 2011. The Company's balance sheet at March 31, 2013, showed $1.91 million in total assets, $1.07 million in total liabilities and $846,954 in total stockholders' equity. MARINA BIOTECH: Assigns UNA Technology to Arcturus -------------------------------------------------- Marina Biotech, Inc., has assigned its Unlocked Nucleobase Analog (UNA) technology to Arcturus Therapeutics, Inc. Under terms of the Agreement, Marina Biotech will retain a non-exclusive license to the technology which will permit it to continue to provide the broadest nucleic acid drug discovery capability in the industry. Financial terms of the agreement were not disclosed. "We are pleased to enter into this agreement with Arcturus," stated J. Michael French, president and chief executive officer of Marina Biotech. "The execution of this Agreement provides Marina with non-dilutive capital and allows us to continue to utilize this important technology in our broad nucleic acid-based drug discovery platform. This deal continues to validate the importance and value of our comprehensive intellectual property portfolio. Since February 2009, we have been successful in monetizing this portfolio by bringing in over $17 MM in non- dilutive capital. Since we retain non-exclusive rights to the UNA technology, we have maintained the ability to utilize our intellectual property estate to protect novel single and double- stranded, nucleic acid-based compounds for our own internal programs as well as the programs of potential partners. I fully expect to continue leveraging our technologies as we pursue drug discovery collaborations with pharma partners." In addition, Marina Biotech announced that the U.S. Patent and Trademark Office (USPTO) has issued two patents and allowed the claims of another which cover significant advances in the Company's technology for the delivery of nucleic acid-based therapeutics. First, the USPTO has issued United States Patent 8,501,824. The US '824 patent expands protection to the Company's Histidine-containing Di-alkylated Amino Acid (DiLA2) liposomal delivery technology. The claims of this patent broadly cover the composition of matter and uses of new His-DiLA2 molecules for delivery of nucleic acid-based therapeutics to control gene expression. The His-DiLA2 molecules utilize a Histidine component to enhance transfection efficiency as well as endosomal escape. The versatility of the DiLA2 platform provides for a rapid and scientifically robust process for improving the delivery characteristics of novel formulations to meet specific requirements for a particular therapeutic application, i.e., administration via systemic or local delivery. The Company's preclinical effort in bladder cancer utilizes the DiLA2 delivery technology. The USPTO has issued United States Patent 8,299,236 and the European Patent Office (EPO) recently mailed an Intention to Grant in EP 09169659.1. The US '236 patent and EP '659.1 patent application expands protection to the Company's delivery-enhancing peptide technology to include protection for compositions comprising delivery-enhancing polypeptides and nucleic acids, including double-stranded RNA (dsRNA). These compositions are active in RNA interference (RNAi) and have been shown to exhibit surprisingly robust delivery of nucleic acid to cells and correspondingly enhanced knockdown of target mRNA levels, as compared to previously-described peptide-based nucleic acid delivery technologies. In addition, the Chinese Patent Office (CPO) has issued CN Patent 101331231, which provides further protection to the Company's nucleic acid delivery technologies by granting claims to dsRNA-peptide condensate particles, which exhibit great potential as effective delivery modalities for a wide variety of nucleic acid-based therapeutics, including therapies employing RNAi. The Company's peptide-based nucleic acid delivery technologies provide a basis for the advancement of both novel oligonucleotide compositions, such as siRNA and microRNA, and longer sequence messenger RNA; as well as varied routes of administration for nucleic acid-based therapeutics such as subcutaneous injection. Finally, the USPTO has allowed the claims in United States Patent Application No. 13/291,650. The US '650 patent application extends protection of Marina Biotech's SMARTICLES(R) technology for the delivery of nucleic acid-based therapeutics to the Company's Conjugated Amphoteric-Amphiphilic liposomal delivery technology. The allowed claims broadly cover the composition of matter and uses of novel Conjugated Amphoteric-Amphiphilic systems for delivery of nucleic acid-based therapeutics to control gene expression. The Conjugated Amphoteric-Amphiphilic platform encompasses a tunable isoelectric point to provide delivery formulations with both enhanced cellular permeability as well as pH-dependent endosomal release of nucleic acid cargoes. The SMARTICLES technology is being used by licensee Mirna Therapeutics for MRX34 which is currently in a Phase 1 clinical study. The Phase 1 trial is being conducted in patients with unresectable primary liver cancer or metastatic cancer with liver involvement. MRX34 is the first miRNA to advance into human clinical trials for cancer. The SMARTICLES technology is also being used by licensee ProNAi Therapeutics for PNT2258, an anti-Bcl-2 cancer drug which completed Phase 1 clinical testing in 2012. PNT2258 targets Bcl- 2-driven tumors such as diffuse large B-cell lymphoma, follicular lymphoma and chronic lymphocytic leukemia. ProNAi Therapeutics reported statistically significant, dose-dependent, and specific knockdown of the Bcl-2 gene with suppression of protein levels up to 60 percent. Patients received the drug for extended periods of time without having material side effects as seen with other anti- Bcl-2 drugs or nucleic acid cancer drugs in development. "We are pleased to see that the USPTO continues to recognize the novelty of our proprietary technologies for the delivery of nucleic acid-based therapeutics," stated Mr. French. "These are important extensions of our patent estate and provide us further opportunity to pursue a full-scale, structure-based development program for oligonucleotide therapeutic candidates. Specifically, we can pursue any number of amphoteric head-groups linked to an amphiphilic structure to create novel delivery formulations. In addition, we can utilize a number of peptide-based technologies to deliver large oligonucleotide cargoes such as messenger RNA as well as to develop formulations for subcutaneous injection. These patents continue to support our broad drug discovery engine for the development of both single and double-stranded nucleic acid- based therapeutics." Marina Biotech also announced that the Company has amended and extended the Company's secured loan such that, among other things, the maturity date of the secured loan was extended to March 31, 2014. "We are encouraged by the growing interest in our nucleic acid- based drug discovery platform and stand-alone technologies; as well as the continued advancement of our intellectual property estate," continued Mr. French. "The Arcturus deal along with the extension of our secured note provides us additional runway to pursue both collaboration transactions and financing opportunities in order to fund our operations and advance our clinical and preclinical programs. To the extent that sufficient funding, either through a partnership or a financing, becomes available we anticipate securing an appropriate facility, in Cambridge, MA, to support our R&D and collaboration efforts. We have, for some time, looked at the opportunities in Cambridge and feel that it is the most appropriate location to establish our R&D operations due to the availability of scientific talent, close proximity to potential pharma partners and ready access to institutional investors. We hope to secure funding to reestablish our operations in the Cambridge area by the end of 2013. In addition, given sufficient funding, we would restart our Phase 1b/2a clinical program in Familial Adenomatous Polyposis in the first quarter of 2014. While there are still hurdles on our path forward, our team remains focused and dedicated to our stakeholders and to the development of unique nucleic acid-based therapeutics for the treatment of human disease." Sixth Amendment of Secured Notes On Aug. 9, 2013, the Company entered into a Sixth Amendment to that certain Note and Warrant Purchase Agreement originally dated as of Feb. 10, 2012, among certain purchasers, the Company, MDRNA Research, Inc., a wholly-owned subsidiary of the Company, and Cequent Pharmaceuticals, Inc., a wholly-owned subsidiary of the Company, and the 15 percent secured promissory notes that the Company issued to the Purchasers pursuant thereto. In the Sixth Amendment, the Companies and the Purchasers agreed, among other things, to extend the maturity date of the Notes from April 30, 2013, to March 31, 2014. As consideration for the Sixth Amendment, the Company agreed to issue to the Purchasers warrants to purchase up to 4,000,000 shares of Common Stock. The Warrants will have an initial exercise price of $0.28 per share (which is subject to adjustment), will be exercisable for a period of five years beginning six months and one day following the issuance of the Warrants, and otherwise have substantially the same terms and conditions as the warrants that were issued to the Purchasers upon the closing of the Note Purchase Agreement. About Marina Biotech Marina Biotech, Inc., headquartered in Bothell, Washington, is a biotechnology company focused on the discovery, development and commercialization of nucleic acid-based therapies utilizing gene silencing approaches such as RNA interference ("RNAi") and blocking messenger RNA ("mRNA") translation. The Company's goal is to improve human health through the development, either through its own efforts or those of its collaboration partners and licensees, of these nucleic acid-based therapeutics as well as the delivery technologies that together provide superior treatment options for patients. The Company has multiple proprietary technologies integrated into a broad nucleic acid-based drug discovery platform, with the capability to deliver novel nucleic acid-based therapeutics via systemic, local and oral administration to target a wide range of human diseases, based on the unique characteristics of the cells and organs involved in each disease. On June 1, 2012, the Company announced that, due to its financial condition, it had implemented a furlough of approximately 90% of its employees and ceased substantially all day-to-day operations. Since that time substantially all of the furloughed employees have been terminated. As of Sept. 30, 2012, the Company had approximately 11 remaining employees, including all of its executive officers, all of whom are either furloughed or working on reduced salary. As a result, since June 1, 2012, its internal research and development efforts have been minimal, pending receipt of adequate funding. KPMG LLP, in Seattle, expressed substantial doubt about Marina Biotech's ability to continue as a going concern following the 2011 financial results. The independent auditors noted that the Company has ceased substantially all day-to-day operations, including most research and development activities, has incurred recurring losses, has a working capital and accumulated deficit and has had recurring negative cash flows from operations. The Company reported a net loss of $29.42 million in 2011, compared with a net loss of $27.75 million in 2010. The Company's balance sheet at Sept. 30, 2012, showed $8.01 million in total assets, $10.36 million in total liabilities and a $2.35 million total stockholders' deficit. "The market value and the volatility of our stock price, as well as general market conditions and our current financial condition, could make it difficult for us to complete a financing or collaboration transaction on favorable terms, or at all. Any financing we obtain may further dilute the ownership interest of our current stockholders, which dilution could be substantial, or provide new stockholders with superior rights than those possessed by our current stockholders. If we are unable to obtain additional capital when required, and in the amounts required, we may be forced to modify, delay or abandon some or all of our programs, or to discontinue operations altogether. Additionally, any collaboration may require us to relinquish rights to our technologies. These factors, among others, raise substantial doubt about our ability to continue as a going concern." "Although we have ceased substantially all of our day-to-day operations and terminated substantially all of our employees, our cash and other sources of liquidity may only be sufficient to fund our limited operations until the end of 2012. We will require substantial additional funding in the immediate future to continue our operations. If additional capital is not available, we may have to curtail or cease operations, or take other actions that could adversely impact our shareholders," the Company said in its quarterly report for the period ended Sept. 30, 2012. METEX MANUFACTURING: Needs More Time for Another Asbestos Plan -------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Metex Manufacturing Corp., named Kentile Floors Inc. during the first bankruptcy reorganization, is seeking a second enlargement of the exclusive right to propose another Chapter 11 plan dealing with asbestos claims. Metex filed for Chapter 11 protection in November and was given a prior extension of so-called exclusivity. If the second request is granted by the court at a Sept. 12 hearing, the deadline will be pushed out by four months to Jan. 21. The report discloses that the company, as it said in the first exclusivity motion, again recited how it has been providing information to the official creditors' committee and the official representative of future asbestos claimants. About Metex Great Neck, New York-based Metex Mfg. Corporation, formerly known as Kentile Floors, Inc., started business in the late 1800's as a manufacturer of cork tile, and thereafter progressed to making composite tile for commercial and residential use. Metex filed for Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 12-14554) on Nov. 9, 2012. The petition was signed by Anthony J. Miceli, president. The Debtor estimated its assets and debts at $100 million to $500 million. Judge Burton R. Lifland presides over the case. Affiliate Kentile Floors, Inc., filed a separate Chapter 11 petition (Bankr. S.D.N.Y. Case No. 92-46466) on Nov. 20, 1992. MF GLOBAL: Escapes Warn Act Liability Completely ------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that neither MF Global Holdings Ltd. nor any of its subsidiaries will be liable to workers fired after the brokerage and its parent filed their separate bankruptcies in October 2011, as the result of a ruling on Aug. 23 by the bankruptcy court in New York. The report recounts that several class suits were filed for violation of Warn Acts requiring 60 days' notice of mass firings. The trustee for the brokerage subsidiary under the Securities Investor Protection Act and the separate Chapter 11 trustee for the parent holding company both filed papers arguing that the suits should be dismissed entirely. In October, U.S. Bankruptcy Judge Martin Glenn concluded that the trustee for the brokerage was entitled to dismissal of the suits entirely because the Securities Investor Protection Act only allows liquidation. Not so for the holding company, Judge Glenn said, because it was in Chapter 11 where reorganization was possible. According to the report, Judge Glenn dismissed the suit as to the broker in view of case law saying there is no liability in liquidation. Judge Glenn allowed plaintiffs to revise the complaint against the holding company's Chapter 11 trustee to add allegations about whether the case is a liquidation or reorganization. He also directed the plaintiffs to identify which MF Global company was the employer. The plaintiffs never specified the MF Global companies that were the employers. Indeed, earlier in the suit, the plaintiffs said they were employed by the broker, where there would be no Warn Act liability. Judge Glenn dismissed the remainder of the suit on Aug. 23, concluding that not even the parent holding company could be liable although it was in Chapter 11 reorganization where Warn Act liability might attach. The plaintiff relied on what's known as the single employer doctrine to avoid having to specify the precise company that was the employer. Judge Glenn said the doctrine has never been used when one of the entities is in bankruptcy. Judge Glenn therefore threw out the suit entirely, meaning that no employees will have claims for improper firings unless they appeal and win. The Warn suit is Thielmann v. MF Global Holdings Ltd. (In re MF Global Holdings Ltd.), 11-02880, U.S. Bankruptcy Court, Southern District New York (Manhattan). About MF Global New York-based MF Global -- http://www.mfglobal.com/-- was one of the world's leading brokers of commodities and listed derivatives. MF Global provides access to more than 70 exchanges around the world. The firm also was one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York. MF Global's roots go back nearly 230 years to a sugar brokerage on the banks of the Thames River in London. On Oct. 31, 2011, MF Global Holdings Ltd. and MF Global Finance USA Inc. filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15059 and 11-5058), after a planned sale to Interactive Brokers Group collapsed. As of Sept. 30, 2011, MF Global had $41,046,594,000 in total assets and $39,683,915,000 in total liabilities. On Nov. 7, 2011, the United States Trustee appointed the statutory creditors' committee in the Debtors' cases. At the behest of the Statutory Creditor's Committee, the Court directed the U.S. Trustee to appoint a chapter 11 trustee. On Nov. 28, 2011, the Bankruptcy Court entered an order approving the appointment of Louis J. Freeh, Esq., of Freeh Group International Solutions, LLC, as Chapter 11 trustee. On Dec. 19, 2011, MF Global Capital LLC, MF Global Market Services LLC and MF Global FX Clear LLC filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 11-15808, 11-15809 and 11-15810). On Dec. 27, the Court entered an order installing Mr. Freeh as Chapter 11 Trustee of the New Debtors. On March 2, 2012, MF Global Holdings USA Inc. filed a voluntary Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-10863), and Mr. Freeh also was installed as its Chapter 11 Trustee. Judge Honorable Martin Glenn presides over the Chapter 11 case. J. Gregory Milmoe, Esq., Kenneth S. Ziman, Esq., and J. Eric Ivester, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, serve as bankruptcy counsel. The Garden City Group, Inc., serves as claims and noticing agent. The petition was signed by Bradley I. Abelow, Executive Vice President and Chief Executive Officer of MF Global Finance USA Inc. The Chapter 11 Trustee has tapped (i) Freeh Sporkin & Sullivan LLP, as investigative counsel; (ii) FTI Consulting Inc., as restructuring advisors; (iii) Morrison & Foerster LLP, as bankruptcy counsel; and (iv) Pepper Hamilton as special counsel. The Official Committee of Unsecured Creditors has retained Capstone Advisory Group LLC as financial advisor, while lawyers at Proskauer Rose LLP serve as counsel. The Securities Investor Protection Corporation commenced liquidation proceedings against MF Global Inc. to protect customers. James W. Giddens was appointed as trustee pursuant to the Securities Investor Protection Act. He is a partner at Hughes Hubbard & Reed LLP in New York. Jon Corzine, the former New Jersey governor and co-CEO of Goldman Sachs Group Inc., stepped down as chairman and chief executive officer of MF Global just days after the bankruptcy filing. In April 2013, the Bankruptcy Court approved MF Global Holdings' plan to liquidate its assets. MI PUEBLO: Hires Bustamante as Counsel in Turlock Suit ------------------------------------------------------ Mi Pueblo San Jose, Inc., asks the U.S. Bankruptcy Court for permission to employ Bustamante & Gagliasso, P.C. as Special Counsel to represent Mi Pueblo by providing advice, and representation regarding the pending civil matter of NUCP Turlock v. Mi Pueblo San Jose, Inc., Santa Clara County Superior Court Case No.: 1-11-CV-210469. The Debtor attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm's rates are: Professional Rates ------------ ----- Partner $340/hour Senior Associate Attorney $270/hour Paralegals $110/hour Proposed Attorneys for the Debtor can be reached at: Heinz Binder, Esq. Robert G. Harris, Esq. Roya Shakoori, Esq. BINDER & MALTER, LLP 2775 Park Avenue Santa Clara, CA 95050 Tel: (408) 295-1700 Fax: (408) 295-1531 Email: Heinz@bindermalter.com Rob@bindermalter.com Roya@bindermalter.com Mi Pueblo San Jose, Inc., filed a Chapter 11 petition (Bankr. N.D. Calif. Case No. 13-53893) in San Jose, California, on July 22, 2013. The Debtor estimated up to $50,000 in assets and up $50,000,000 in liabilities. An affiliate, Cha Cha Enterprises, LLC, sought Chapter 11 protection (Case No. 13-53894) on the same day. It estimated up to $50,000 in assets and up $50,000,000 in liabilities. Binder & Malter, LLP, is the Debtor's general reorganization counsel. The Law Offices of Wm. Thomas Lewis, sometimes doing business as Robertson & Lewis, is the Debtor's special counsel. MI PUEBLO: Taps Cavanagh as Counsel in Immigration, Custom Issues ----------------------------------------------------------------- Mi Pueblo San Jose, Inc. asks the U.S. Bankruptcy Court for permission to employ The Cavanagh Law Firm, P.A. as its special counsel to represent Mi Pueblo with respect to the U.S. Immigrations and Customs Enforcement I-9 investigations for Mi Pueblo's past and current employees and to provide legal services, advice, and related representation regarding such matters. The Debtor attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. At the time of Mi Pueblo's bankruptcy filing, Cavanagh was owed $148,028.45 for services provided for Mi Pueblo. From April 21, 2013 until July 22, 2013 when Mi Pueblo filed its Voluntary Petition under Chapter 11, Cavanagh received $64,785.48 in compensation for its services (including attorney's fees and cost reimbursements) for work on behalf of Mi Pueblo. Cavanagh will be employed on these terms: a. Approval of attorneys' fees and costs to be paid to Special Counsel by Mi Pueblo shall be subject to one or more duly noticed fee applications to be approved by this Court. b. Any and all detailed time records to be attached to the Special Counsel's fee applications will be filed under seal due to confidentiality concerns in connection with the Employment Matters, such time records to be available to the United Stats Trustee and counsel for the Committee Of Unsecured Creditors upon execution of a Non-Disclosure Agreement and upon written notice to Mi Pueblo and Special Counsel; the fee applications themselves will not be filed under seal and time records will be summarized; c. It is anticipated that Special Counsel will use the following attorneys and paralegals in rendering services to Mi Pueblo at the following hourly rates: Professional Standard Hourly Billable Rate --------------------- -------------------- Julie A. Pace $395.00 David A. Selden $395.00 Hilary L. Barnes $350.00 Heidi Nunn-Gilman $295.00 Jennifer L. Sellers $290.00 Meaghan E. Gallagher $260.00 Stephanie L. Coulter - paralegal $175.00 Monica R. Rushton - paralegal $175.00 Mi Pueblo San Jose, Inc., filed a Chapter 11 petition (Bankr. N.D. Calif. Case No. 13-53893) in San Jose, California on July 22, 2013. The Debtor estimated up to $50,000 in assets and up $50,000,000 in liabilities. An affiliate, Cha Cha Enterprises, LLC, sought Chapter 11 protection (Case No. 13-53894) on the same day. It estimated up to $50,000 in assets and up $50,000,000 in liabilities. Binder & Malter, LLP, is the Debtor's general reorganization counsel. The Law Offices of Wm. Thomas Lewis, sometimes doing business as Robertson & Lewis, is the Debtor's special counsel. MI PUEBLO: Littler Mendelson to Serve as Labor Counsel ------------------------------------------------------ Mi Pueblo San Jose, Inc., asks the U.S. Bankruptcy Court for permission to employ Littler Mendelson as its special counsel. The firm will, among other things, provide these services: a. review and negotiate and prepare various labor, union and employee agreements; b. provide advice and representation in the defense of various labor, union, employee litigation, and employment law matters; and c. provide advice, and representation regarding any other labor and employment law matters. Brian T. McMillan attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm's rates are: Attorney Name Attorney Hourly Rate ------------- (Uninsured Rate/Insured Rate) ----------------------------- Brian T. McMillan $400/$340-375 Richard Leasia $504 Alan B. Carlson $540/$340-375 Michelle B. Heverly $496/$340-375 Todd Boyer $384/$340-375 Karin Cogbill $344/$250-285 Jose Macias, Jr. $248/$250-285 Mi Pueblo San Jose, Inc., filed a Chapter 11 petition (Bankr. N.D. Calif. Case No. 13-53893) in San Jose, California on July 22, 2013. The Debtor estimated up to $50,000 in assets and up $50,000,000 in liabilities. An affiliate, Cha Cha Enterprises, LLC, sought Chapter 11 protection (Case No. 13-53894) on the same day. It estimated up to $50,000 in assets and up $50,000,000 in liabilities. Binder & Malter, LLP, is the Debtor's general reorganization counsel. The Law Offices of Wm. Thomas Lewis, sometimes doing business as Robertson & Lewis, is the Debtor's special counsel. MI PUEBLO: Hires Perkins Coie as IP Counsel ------------------------------------------- Mi Pueblo San Jose, Inc. asks the U.S. Bankruptcy Court for permission to employ Perkins Coie LLP as its Special Counsel. The firm will, among other things, provide these services: a. provide advice and representation in various intellectual property and intellectual property litigation matters, including but not limited to THF Equities, LP and Bay Valley Foods, LLC v. Mi Pueblo San Jose, Inc., United States Patent and Trademark Office, Trademark Trial and Appeal Board Proceeding Nos. 91202185, 91202569, and 92054486; Mi Pueblo San Jose, Inc. v. THF Equities, LP and Bay Valley Foods, LLC, United States Patent and Trademark Office, Trademark Trial and Appeal Board Proceeding Nos. 92052561 and 92055015; and b. provide legal services, advice, representation and related services in connection with such other matters as the Debtor may from time to time request. At the time of Mi Pueblo's bankruptcy filing, Perkins Coie was owed the sum of approximately $18,139.50 for services provided for Mi Pueblo. From April 21, 2013 until July 22, 2013 when Mi Pueblo filed its Voluntary Petition under Chapter 11, Perkins Coie received approximately $730.00 in compensation for its services (including attorney's fees and cost reimbursements) for work on behalf of Mi Pueblo and others. Perkins Coie will be employed on these terms: a. Approval of attorneys' fees and costs to be paid to Special Counsel by Mi Pueblo shall be subject to one or more duly noticed fee applications to be approved by this Court. b. It is anticipated that these attorneys and paralegals will be primarily utilized by Special Counsel in rendering services to Mi Pueblo at the following hourly rates: Attorney Name Attorney Hourly Rate ------------- -------------------- Christopher Kao $710.00 Jeffrey A. Nelson $455.00 The Debtor attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. Mi Pueblo San Jose, Inc., filed a Chapter 11 petition (Bankr. N.D. Calif. Case No. 13-53893) in San Jose, California, on July 22, 2013. The Debtor estimated up to $50,000 in assets and up $50,000,000 in liabilities. An affiliate, Cha Cha Enterprises, LLC, sought Chapter 11 protection (Case No. 13-53894) on the same day. It estimated up to $50,000 in assets and up $50,000,000 in liabilities. Binder & Malter, LLP, is the Debtor's general reorganization counsel. The Law Offices of Wm. Thomas Lewis, sometimes doing business as Robertson & Lewis, is the Debtor's special counsel. MMODAL INC: S&P Revises Outlook to Negative & Affirms 'B' CCR ------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Franklin, Tenn.-based MModal Inc. to negative from stable, and affirmed the corporate credit rating at 'B'. At the same time, S&P affirmed its issue-level rating on the company's $520 million senior secured facilities, which consist of a $75 million revolving credit facility due 2017 and a $445 million term loan due 2019, at 'B+'. The '2' recovery rating indicates S&P's expectation for substantial (70% to 90%) recovery in the event of payment default. S&P also affirmed its issue-level rating at 'CCC+' on the company's $250 million unsecured notes due 2020. The '6' recovery rating indicates S&P's expectation for negligible (0% to 10%) recovery in the event of payment default. "The outlook revision to negative reflects continued revenue erosion in MModal's transcription business as a result of its customers' adoption of electronic health records, and pricing and competitive pressures," said Standard & Poor's credit analyst David Tsui. "We now expect the launch of new products to lag what we previously expected in the second half of 2013, which would lead to a modest revenue decline in 2013." MModal is a leading provider of clinical narrative capture services, speech and natural language understanding technology, and clinical documentation workflow solutions to the U.S. health care industry. Standard & Poor's views MModal's business risk profile as "weak," reflecting its narrow focus on the generally fragmented U.S. clinical documentation industry, which includes a more diversified direct competitor with greater financial resources. In S&P's assessment, the company's financial risk profile is "highly leveraged," reflecting pro forma operating-lease adjusted leverage of about 7.4x as of June 30, 2013. S&P expects MModal's free operating cash flow in 2013 to be slightly negative to flat. S&P's assessment of the company's management and governance is "fair." MONTREAL MAINE: Allowed to Operate until Oct. 1 ----------------------------------------------- Solarina Ho, writing for Reuters, reported that the rail company whose oil tanker train blew up in a Quebec town last month, killing 47 people, will be allowed to continue operating through Oct. 1 after providing insurance documentation demanded by Canadian authorities. According to the report, the Canadian Transportation Agency said on Aug. 23 it would let Montreal, Maine and Atlantic Railway and its Canadian subsidiary keep trains moving for now. Earlier this month it had ordered MMA to cease operations, saying the railway lacked adequate insurance. On July 6, a runaway MMA train hauling tankers of crude oil derailed in the center of the little Quebec town of Lac-Megantic, and exploded in giant fireballs in what was North America's deadliest rail accident in two decades, the report related. The center of Lac-Megantic was flattened and an estimated 1.5 million U.S. gallons (5.6 million liters) of oil were spilled. The CTA ordered the railway on Aug. 13 to halt operations as of Aug. 20 because it did not have adequate insurance, the report said. The insurance that MMA had in force in July will not come close to meeting the costs of cleanup and restoration after the Lac-Megantic crash. On Aug. 23, the CTA reversed that order, allowing MMA to operate through Oct. 1 after the railway provided evidence of adequate third-party insurance. However, MMA still had to show by Aug. 23 it had sufficient funds to cover the C$250,000 ($237,500) self- insured portion of its operations, or it would be shut down. About Montreal, Maine & Atlantic Railway Montreal, Maine & Atlantic Railway Ltd., the railway company that operated the train that derailed and exploded in July 2013, killing 47 people and destroying part of Lac-Megantic, Quebec, sought bankruptcy protection in U.S. Bankruptcy Court in Bangor, Maine (Case No. 13-10670) on Aug. 7, 2013, with the aim of selling its business. Its Canadian counterpart, Montreal, Maine & Atlantic Canada Co., meanwhile, filed for protection from creditors in Superior Court of Quebec in Montreal. U.S. Bankruptcy Judge Louis H. Kornreich has been assigned to the U.S. case. The Maine law firm of Verrill Dana serves as counsel to MM&A. Justice Martin Castonguay oversees the case in Canada. MPG OFFICE: Merger Agreement "Outside Date" Changed to Sept. 16 --------------------------------------------------------------- MPG Office Trust, Inc., (the "Company"), MPG Office, L.P. (the "Operating Partnership"), Brookfield DTLA Holdings LLC, ("Brookfield DTLA"), Brookfield DTLA Fund Office Trust Investor Inc., ("Sub REIT"), Brookfield DTLA Fund Office Trust Inc., a Maryland corporation ("REIT Merger Sub"), and Brookfield DTLA Fund Properties LLC ("Partnership Merger Sub") entered into a Third Amendment to Agreement and Plan of Merger to that certain Agreement and Plan of Merger, dated as of April 24, 2013, which provides for the merger of the Company with and into REIT Merger Sub, with REIT Merger Sub surviving the merger. The Merger Agreement also provides for a merger of Partnership Merger Sub with and into the Operating Partnership, with the Operating Partnership surviving the merger. The Amendment amends the Merger Agreement to, among other things, change the Outside Date (as defined in the Merger Agreement) to Sept. 16, 2013, and to permit each of Brookfield DTLA and the Company to further extend the Outside Date on one or more occasions up to (and including) Oct. 31, 2013. A copy of the Third Amendment is available for free at: http://is.gd/pa2C2V About MPG Office Trust MPG Office Trust, Inc., fka Maguire Properties Inc. -- http://www.mpgoffice.com/-- owns and operates Class A office properties in the Los Angeles central business district and is primarily focused on owning and operating high-quality office properties in the Southern California market. MPG Office Trust is a full-service real estate company with substantial in-house expertise and resources in property management, marketing, leasing, acquisitions, development and financing. For the year ended Dec. 31, 2012, the Company reported net income of $396.11 million, as compared with net income of $98.22 million on $234.96 million of total revenue during the prior year. As of June 30, 2013, the Company had $1.28 billion in total assets, $1.71 billion in total liabilities and a $437.26 million total deficit. In its Form 10-K filing with the Securities and Exchange Commission for the fiscal year ended Dec. 31, 2012, the Company said it is working to address challenges to its liquidity position, particularly debt maturities, leasing costs and capital expenditures. The Company said, "We do not currently have committed sources of cash adequate to fund all of our potential needs, including our 2013 debt maturities. If we are unable to raise additional capital or sell assets, we may face challenges in repaying, extending or refinancing our existing debt on favorable terms or at all, and we may be forced to give back assets to the relevant mortgage lenders. While we believe that access to future sources of significant cash will be challenging, we believe that we will have access to some of the liquidity sources identified above and that those sources will be sufficient to meet our near- term liquidity needs." On March 11, 2013, the Company entered into an agreement to sell US Bank Tower and the Westlawn off-site parking garage. The transaction is expected to close June 28, 2013, subject to customary closing conditions. The net proceeds from the transaction are expected to be roughly $103 million, a portion of which may potentially be used to make loan re-balancing payments on the Company's upcoming 2013 debt maturities at KPMG Tower and 777 Tower. Roughly $898 million of the company's debt matures in 2013. "Our ability to access the capital markets to raise capital is highly uncertain. Our substantial indebtedness may prevent us from being able to raise debt financing on acceptable terms or at all. We believe we are unlikely to be able to raise equity capital in the capital markets," the Company said. "Future sources of significant cash are essential to our liquidity and financial position, and if we are unable to generate adequate cash from these sources we will have liquidity-related problems and will be exposed to material risks. In addition, our inability to secure adequate sources of liquidity could lead to our eventual insolvency." N-VIRO INTERNATIONAL: Delays Form 10-Q for Second Quarter --------------------------------------------------------- N-Viro International Corporation said it was unable to complete the preparation of the financial statements for the quarterly period ended June 30, 2013, within the required time period without unreasonable effort or expense, due to delays in gathering and reviewing information needed to complete the preparation of the Report. About N-Viro International Toledo, Ohio-based N-Viro International Corporation owns and sometimes licenses various N-Viro processes and patented technologies to treat and recycle wastewater and other bio-organic wastes, utilizing certain alkaline and mineral by-products produced by the cement, lime, electrical generation and other industries. In its audit report on the consolidated financial statements for the year ended Dec. 31, 2012, UHY LLP, in Farmington Hills, Michigan, expressed substantial doubt about N-Viro's ability to continue as a going concern, citing the Company's recurring losses, negative cash flow from operations and net working capital deficiency. The Company reported a net loss of $1.6 million on $3.6 million of revenues in 2012, compared with a net loss of $1.6 million of $5.6 million of revenues in 2011. The Company's balance sheet at Dec. 31, 2012, showed $2.3 million in total assets, $2.4 million in total liabilities, and a stockholders' deficit of $49,286. NNN PARKWAY: Sec. 341 Creditors' Meeting Set for Sept. 20 --------------------------------------------------------- The U.S. Trustee will convene a meeting of creditors pursuant to 11 U.S.C. 341(a) in the Chapter 11 case of NNN Parkway 400 26, LLC on Sept. 20, 2013, at 1:00 p.m. The meeting will be held at RM 1-159, 411 W Fourth St., Santa Ana, CA 92701. NNN Parkway 400 26, LLC, filed a bare-bones Chapter 11 petition (Bankr. C.D. Calif. 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. The Law Office of Christine E. Baur and David A. Lee, Esq., at Weiland, Golden, Smiley, Wang Ekvall & Strok, LLP, represent the Debtor. NNN PARKWAY: Court Extends Plan Filing Deadline to Aug. 30 ---------------------------------------------------------- NNN Parkway 400 26 LLC sought and obtained an extension until Aug. 30, 2013, of the deadline to file its Chapter 11 plan and disclosure statement. NNN Parkway 400 26, LLC, filed a bare-bones Chapter 11 petition (Bankr. C.D. Calif. 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. The Law Office of Christine E. Baur and David A. Lee, Esq., at Weiland, Golden, Smiley, Wang Ekvall & Strok, LLP, represent the Debtor. NORTHCORE TECHNOLOGIES: Had C$303,000 Comprehensive Loss in Q2 -------------------------------------------------------------- Northcore Technologies Inc. reported a loss and comprehensive loss of C$303,000 on C$291,000 of revenues for the three months ended June 30, 2013, as compared with a loss and comprehensive loss of C$556,000 on C$415,000 of revenues for the same period a year ago. For the six months ended June 30, 2013, the Company reported a loss and comprehensive loss of C$802,000 on C$580,000 of revenues, as compared with a loss and comprehensive loss of C$1.29 million on C$645,000 of revenues for the same period last year. The Company's balance sheet at June 30, 2013, showed C$2.52 million in total assets, C$1.36 million in total liabilities and C$1.16 million in total stockholders' equity. A copy of the quarterly report is available for free at: http://is.gd/P7FRM7 About Northcore Technologies Toronto, Ontario-based Northcore Technologies Inc. (TSX: NTI; OTC BB: NTLNF) -- http://www.northcore.com/-- provides a Working Capital Engine(TM) that helps organizations source, manage, appraise and sell their capital equipment. Northcore offers its software solutions and support services to a growing number of customers in a variety of sectors including financial services, manufacturing, oil and gas and government. Northcore owns 50 percent of GE Asset Manager, LLC, a joint business venture with GE. Together, the companies work with leading organizations around the world to help them liberate more capital value from their assets. The Company reported a loss and comprehensive loss of C$3.93 million in 2011, compared with a loss and comprehensive loss of C$3.03 million in 2010. NTELOS HOLDINGS: S&P Lowers Corporate Credit Rating to 'B' ---------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Waynesboro, Va.-based regional wireless carrier NTELOS Holdings Corp. to 'B' from 'BB-'. In addition, S&P lowered the issue-level rating on NTELOS Inc.'s senior secured debt to 'B' to from 'BB-'. The recovery on this debt remains '4', which indicates S&P's expectation for average (30% to 50%) recovery of principal in the event of a payment default. S&P has also removed the ratings, including the corporate credit rating, from CreditWatch where it placed them with negative implications on Dec. 17, 2012. The outlook is developing. "The developing outlook means that we could lower or raise the ratings during the next year," said Standard & Poor's credit analyst Richard Siderman. NTELOS reported about $492 million of debt outstanding on June 30, 2013. S&P lowered the rating on NTELOS based on its assessment of the risk that it might not be able to renew a favorable wholesale services contract with Sprint after July 31, 2015. Wholesale revenues have grown in importance and now account for about one- third of NTELOS' service revenues and a significantly greater portion of consolidated EBITDA. The contract also includes a minimum revenue guarantee and other operating benefits. If the contract lapses and NTELOS is unable to replace at least a substantial portion of those revenues, its credit measures would weaken significantly and potentially stress liquidity. The developing outlook reflects the uncertainty as to whether NTELOS can extend the Strategic Network Alliance agreement with Sprint beyond July 31, 2015. If the company cannot renew the agreement with favorable terms or replace it with alternate wholesale agreements, NTELOS' credit measures would weaken materially and adjusted debt leverage could move toward the double-digit area. In addition, that scenario would make it uncertain, in S&P's opinion, that NTELOS would be able to refinance the term loan A that matures in August 2015 and S&P could consider lowering the rating to the 'CCC' category. Conversely, if NTELOS is able to extend the Sprint agreement under terms that provide billable wholesale revenues that approximate the current minimum guarantee level of $9 million per month (about two-thirds of current Sprint wholesale revenues), S&P would consider a rating upgrade. OCEAN 4660: Hearing on Continued Use of Cash Collateral Today ------------------------------------------------------------- Judge John K. Olson of the U.S. Bankruptcy Court for the Southern District of Florida, Fort Lauderdale Division, previously gave interim authority to Maria Yip, the Chapter 11 Trustee for Ocean 4660, LLC, to use Cash Collateral through and including Aug. 27, 2013. A continued hearing on the Chapter 11 Trustee's application to use Cash Collateral will be held on Aug. 27, 2013 at 10:30 a.m. About Ocean 4660 Ocean 4660, LLC, owner of a beachfront property operated as the Lauderdale Beachside Hotel in Lauderdale-by-the-Sea, Florida, filed a Chapter 11 petition (Bankr. S.D. Fla. Case No. 13-23165) in its hometown on June 2, 2013. Rick Barreca signed the petition as chief restructuring officer. The Lauderdale Beachside Hotel features a beach-front location, two five-story interior corridor buildings (east and west), 147 guest rooms, a beach front tiki bar and grill, a large adjoining restaurant and commercial kitchen space and on-site parking. The restaurant space and the tiki bar and grill are unoccupied. The occupancy rates have generally been between 40 percent and 70 percent occupancy. Room rates are $40 to $80 per night. The Company disclosed $15,762,871 in assets and $16,587,678 in liabilities as of the Chapter 11 filing. Judge John K. Olson presides over the case. The Debtor tapped RKJ Hotel Management, LLC, as hotel manager and RKJ's Rick Barreca as the CRO. The Debtor tapped Genovese Joblove & Battista, P.A. as counsel. Irreconcilable differences prompted the firm to withdraw as counsel in July 2013. The Court approved the appointment of Maria Yip, of Coral Gables, Florida, as Chapter 11 trustee. Drew M. Dillworth, Esq., of the Law firm of Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A. serves as his counsel. Kerry-Ann Rin, CPA, and the consulting firm of Yip Associates serve as financial advisor, and accountant. The U.S. Trustee has not appointed an official committee of unsecured creditors. OMNICARE INC: Moody's Rates New $424-Mil. Senior Notes 'Ba3' ------------------------------------------------------------ Moody's Investors Service assigned a Ba3 rating to Omnicare, Inc.'s new $424.25 million in aggregate principal amount of convertible senior subordinated notes, due 2044, with an original issue price of about $388.83 (which will accrete on a semi-annual basis). These notes are being exchanged for $180.46 million in principal amount of existing 3.75% convertible senior subordinated notes, due 2025. At the same time, Moody's understands that Omnicare is retiring about $5.15 million in principal amount of these existing subordinated notes and about $150 million in principal amount of its 7.75% senior subordinated notes due 2020. The rating outlook is stable. Omnicare's other ratings (including its Ba3 Corporate Family Rating) remain unchanged although LGD assessments have been modified. Ratings assigned: Omnicare, Inc. $424.25 million new convertible senior subordinated notes, due 2044 at Ba3 (LGD4, 52%) Ratings Rationale: "This exchange and cash repurchase offer will result in better liquidity for Omnicare because it extends debt maturities and reduces exposure to in-the-money convertible shares," said Diana Lee, a Moody's Senior Credit Officer. Omnicare's Ba3 Corporate Family Rating reflects its moderately high financial leverage and risk associated with ongoing reimbursement challenges. Although OCR is large relative to other Ba3 rated companies based on revenues and has a leading national position in this niche market, the company still contends with competitive pressures, largely from local market players. This has resulted in net bed losses -- although a recently signed contract with Kindred, a large post-acute care operator, helped the company show a net bed gain in the most recent quarter. Other ongoing operating challenges include lower SNF occupancy levels and script volume. Healthcare reform legislation and reimbursement challenges facing both Omnicare and its customers -- including health plans and nursing homes -- are key risks for the long term care pharmacy sector. Providing some offset, OCR's focus on its specialty business should help improve its top line and profitability. For the LTM period ended June 30, 2013, debt/EBITDA declined to about 3.6 times. While the company will continue to be more focused on shareholders than it has previously, Moody's expects buybacks to be funded with free cash flow. The stable outlook reflects Moody's belief that Omnicare will not engage in large debt-financed transactions and that improvements in bed retention and growth in its specialty business will offset negative effects of reimbursement changes, resulting in solid cash flow. The ratings could be upgraded if Omnicare is able to demonstrate a conservative approach to growth, sustain improved bed retention rates, growth in profitability and better diversification beyond long term care pharmacy services. Retained cash flow to debt approaching 20% and debt/EBITDA sustained below 2.5 times could help support an upgrade. The ratings could be downgraded if there are material negative reimbursement changes or if the company engages in large debt financed acquisitions. Retained cash flow to debt that is below the low to mid-teens level, or debt/EBITDA sustained above 3.75 times could result in a downgrade. Omnicare's SGL-1 Speculative Grade Liquidity rating reflects OCR's very good liquidity profile over the next twelve months. This is characterized by Moody's expectations of good cash flow, healthy cash balances, access to a $300 million 5-year unsecured revolver that expires in 2017, and maintenance of ample covenant cushions. The company had unrestricted cash of approximately $535 million at June 30, 2013. The principal methodology used in this rating was Global Distribution and Supply Chain Services published in November 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. Omnicare, Inc., headquartered in Cincinnati, Ohio, is the leading provider of institutional pharmacy services to the long term care sector. OMNICOMM SYSTEMS: Stockholders Elect Three Directors ---------------------------------------------------- OmniComm Systems, Inc., held its annual meeting of stockholders in Ft. Lauderdale, Florida, on Aug. 1, 2013, at which the stockholders: (1) elected Randall G. Smith, Cornelis F. Wit and Guus van Kesteren to the Board of Directors for a one-year term expiring in 2014; and (2) ratified the appointment of Liggett, Vogt & Webb P.A., formerly known as Webb & Company, P.A., as the independent registered public accounting firm for the Company to serve for the 2014 fiscal year. Robert C. Schweitzer has been appointed to serve as a member of the Company's Board of Directors. Mr. Schweitzer will be a member of the Audit Committee and the Compensation Committee. Mr. Schweitzer, age 67, has no family relationships with any of the executive officers or directors of the Company. There were no arrangements or understandings between Mr. Schweitzer and any other person pursuant to which he was appointed to the board. There have been no related party transactions in the past two years in which the Company or any of its subsidiaries was or is to be a party, in which Mr. Schweitzer had, or will have, a direct or indirect material interest. In connection with his appointment to the board of directors, Mr. Schweitzer will be granted 100,000 shares of restricted stock in accordance with the Company's 2009 Equity Incentive Plan. The restricted stock will have a grant date of Aug. 13, 2013, and the restrictions will lapse ratably over a three-year period. Mr. Schweitzer currently serves as a member of the Boards of Directors for 1-800-PetMeds, Rice Bran Technologies and Altisource Asset Management Company. From 2007 to 2012 he served as the President and COO for Shay Investment Services Inc. From 2004 to 2006 he held various roles including Consultant, President & CEO and Regional President with Equinox Bank FSB and Northwest Savings Bank. He served as Regional President for Union Planters Bank from 1999 to 2003. Mr. Schweitzer holds a Masters of Business Administration degree from the University of North Carolina, and a Bachelor of Science degree from the United States Naval Academy. Mr. Schweitzer served in the United States Navy in the Submarine Force and Navy Reserve for 30 years, and retired with a rank of Captain. About OmniComm Systems Ft. Lauderdale, Fla.-based OmniComm Systems, Inc., is a healthcare technology company that provides Web-based electronic data capture ("EDC") solutions and related value-added services to pharmaceutical and biotech companies, clinical research organizations, and other clinical trial sponsors principally located in the United States and Europe. OmniComm Systems disclosed a net loss of $7.83 million in 2012, as compared with a net loss of $3.52 million in 2011. Liggett, Vogt & Webb, P.A., in Boynton Beach, 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 a net loss attributable to common shareholders of $8,062,487, a negative cash flow from operations of $173,912, a working capital deficiency of $13,382,871 and a stockholders' deficit of $28,973,300. These factors raise substantial doubt about the Company's ability to continue as a going concern. ORCHARD SUPPLY: Term Lenders Settle With Committee on Plan ---------------------------------------------------------- Orchard Supply Hardware Stores Corp. creditors' committee negotiated a settlement with secured term-loan lenders to assure payment of costs of the Chapter 11 case and confirmation of a liquidating plan including a distribution to unsecured creditors. Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the official creditors' committee retained the right to challenge the validity of liens securing the $127 million owing on a term loan. Although Orchard Supply is selling 72 stores to Lowe's Companies Inc. for $205 million, there is $118 million owing on an asset-backed loan that comes ahead of the term-loan lenders. According to the report, the creditors' committee agreed to drop a challenge to the term lenders' lien in return for a deal where bankruptcy financing is paid in full from sale proceeds and the term lenders receive the remainder after Orchard Supply retains $25 million. The funds retained by the company will be used for full payment of costs of the bankruptcy case and claims entitled to priority. The remainder of the estate's funds will go to the term lenders until they are paid in full, subject to carveouts for unsecured creditors. A trust will be created for unsecured creditors funded with $500,000 from the company. After term lenders recover 90 percent of their claims, the next $1.5 million goes to the creditors' trust. From proceeds lease sales at the 19 stores Lowe's didn't purchase, the creditors' trust receives the first $250,000, with the remainder for term lenders. The term lenders, the committee, and the company agreed to support a plan incorporating the settlement. The settlement is scheduled for approval on Sept. 4 in U.S. Bankruptcy Court in Delaware. On top of sale proceeds from Lowe's, there will be proceeds from liquidating inventory at the 19 stores that weren't bought. The bankruptcy court approved the sale to Lowe's last week. The sale to Lowe's should be completed by the end of August, according to a company statement. "The litigation to resolve such disputes would be time consuming and expensive, and would delay any distribution to creditors for months or years," Orchard said, a Wall Street Journal report cited. Attorneys mentioned the settlement in bankruptcy court when Orchard got approval for the Lowe's sale, but the company disclosed the details in court papers filed on Aug. 22, the WSJ report related. Near the top of the list for repayment in Orchard's Chapter 11 case are lenders behind its $176.3 million bankruptcy loan, the report said. Whatever they're owed under the loan will be paid off from the sale proceeds. About Orchard Supply San Jose, Cal.-based Orchard Supply Hardware Stores Corporation operates neighborhood hardware and garden stores focused on paint, repair and the backyard. It was spun off from Sears Holdings Corp. in 2012. Orchard Supply and two affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-11565) on June 16 to facilitate a restructuring of the company's balance sheet and a sale of its assets for $205 million in cash to Lowe's Companies, Inc., absent higher and better offers. In addition to the $205 million cash, Lowe's has agreed to assume payables owed to nearly all of Orchard's supplier partners. Bankruptcy Judge Christopher S. Sontchi oversees the case. Michael W. Fox signed the petitions as senior vice president and general counsel. The Debtors disclosed total assets of $441,028,000 and total debts of $480,144,000. Stuart M. Brown, Esq., at DLA Piper LLP (US), in Wilmington, Delaware; and Richard A. Chesley, Esq., Chun I. Jang, Esq., and Daniel M. Simon, Esq., at DLA Piper LLP (US), in Chicago, Illinois, are the Debtors' counsel. Moelis & Company LLC serves as the Debtors' investment banker. FTI Consulting, Inc., serves as the Debtors' financial advisors. A&G Realty Partners, LLC, serves as the Debtors' real estate advisors. BMC Group Inc. is the Debtors' claims and noticing agent. ORCHARD SUPPLY: Great American Liquidating Outlets in Calif. ------------------------------------------------------------ Great American Group, Inc. has been engaged to manage store closing sales at nine additional Orchard Supply Hardware (OSH) locations, offering significant product discounts in the Burbank, Canoga Park, El Cerrito, Lodi, Merced, Santa Ana, Santa Clarita, Torrance and Yuba City stores. Liquidation sales are already underway at eight other OSH locations throughout California. For more information about the Orchard Supply Hardware sale event, see http://is.gd/iCuiQv Orchard Supply on Aug. 20 disclosed that the Bankruptcy Court has approved the acquisition of a majority of Orchard's assets by Lowe's. The companies expect to complete the transaction by the end of August. Orchard will operate as a separate, standalone business with its own brand and a continued commitment to its neighborhood store format, which uniquely caters to the needs of local consumers. At the close of the transaction, Lowe's will acquire the majority of Orchard's assets for approximately $205 million in cash, plus the assumption of payables owed to nearly all of Orchard's supplier partners. Orchard and Lowe's first announced the agreement on June 17, 2013. About Orchard Supply San Jose, Cal.-based Orchard Supply Hardware Stores Corporation operates neighborhood hardware and garden stores focused on paint, repair and the backyard. It was spun off from Sears Holdings Corp. in 2012. Orchard Supply and two affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-11565) on June 16 to facilitate a restructuring of the company's balance sheet and a sale of its assets for $205 million in cash to Lowe's Companies, Inc., absent higher and better offers. In addition to the $205 million cash, Lowe's has agreed to assume payables owed to nearly all of Orchard's supplier partners. Bankruptcy Judge Christopher S. Sontchi oversees the case. Michael W. Fox signed the petitions as senior vice president and general counsel. The Debtors disclosed total assets of $441,028,000 and total debts of $480,144,000. Stuart M. Brown, Esq., at DLA Piper LLP (US), in Wilmington, Delaware; and Richard A. Chesley, Esq., Chun I. Jang, Esq., and Daniel M. Simon, Esq., at DLA Piper LLP (US), in Chicago, Illinois, are the Debtors' counsel. Moelis & Company LLC serves as the Debtors' investment banker. FTI Consulting, Inc., serves as the Debtors' financial advisors. A&G Realty Partners, LLC, serves as the Debtors' real estate advisors. BMC Group Inc. is the Debtors' claims and noticing agent. The Official Committee of Unsecured Creditors appointed in case has retained Pachulski Stang Ziehl & Jones LLP as counsel, and Alvarez & Marsal as financial advisors. ORMET CORP: Borrowing $4 Million More Until Sale Closes ------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that although Ormet Corp. was given approval in June to sell the business to lender and part owner Wayzata Investment Partners LLC mostly in exchange for debt, the primary aluminum producer so far has been unable to complete the sale for lack of a new electricity supply agreement with Ohio Power Co. The inability to close the sale created what Ormet called a "severe liquidity crisis" because the company doesn't believe the purchase will be completed until October. To fill the cash-flow gap, the bankruptcy court gave authority late last week to modify the loan arrangement for the Chapter 11 case. The revolving credit lenders are now authorized to allow $4 million in additional advances that should carry the company over until the sale closes. The sale included a settlement where Wayzata will give a $2 million note to a trust being created for unsecured creditors. The note will mature in six years and pay 5 percent cash interest. Wayzata will participate in proceeds from the note as a result of its deficiency claims. In addition, the unsecured creditors' trust will have warrants for 2.5 percent of the stock exercisable at a price equal to the secured debt owing to Wayzata, including loans for the Chapter 11 case. The creditors will have warrants for another 2 percent equal to twice the Wayzata debt. Wayzata will acquire the business in exchange for $130 million of the $139.5 million in secured debt it holds. Wayzata is financing the Chapter 11 case with a $30 million term loan and a $60 million revolving credit that replaced an existing facility. About Ormet Corp. Aluminum producer Ormet Corporation, along with affiliates, filed for Chapter 11 protection (Bankr. D. Del. Case No. 13-10334) on Feb. 25, 2013, with a deal to sell the business to a portfolio company owned by private investment funds managed by Wayzata Investment Partners LLC. Headquartered in Wheeling, West Virginia, Ormet -- http://www.ormet.com/-- is a fully integrated aluminum manufacturer, providing primary metal, extrusion and thixotropic billet, foil and flat rolled sheet and other products. Ormet disclosed assets of $406.8 million and liabilities totaling $416 million. Secured debt of about $180 million includes $139.5 million on a secured term loan and $39.3 million on a revolving credit. Affiliates that separately filed Chapter 11 petitions are Ormet Primary Aluminum Corporation; Ormet Aluminum Mill Products Corporation; Specialty Blanks Holding Corporation; and Ormet Railroad Corporation. Ormet is represented in the case by Morris, Nichols, Arsht & Tunnell LLP's Erin R. Fay, Esq., Robert J. Dehney, Esq., Daniel B. Butz, Esq.; and Dinsmore & Shohl LLP's Kim Martin Lewis, Esq., Patrick D. Burns, Esq. Kurtzman Carson Consultants is the claims and notice agent. Evercore's Lloyd Sprung and Paul Billyard serve as investment bankers to the Debtor. An official committee of unsecured creditors was appointed in the case in March 2013. The Committee is represented by Rafael X. Zahralddin, Esq., Shelley A. Kinsella, Esq., and Jonathan M. Stemerman, Esq., at Elliott Greenleaf; and Sharon Levine, Esq., S. Jason Teele, Esq., and Cassandra M. Porter, Esq., at Lowenstein Sandler LLP. In June 2013, the Bankruptcy Court approved the sale of substantially all of the assets of Ormet to Smelter Acquisition, LLC, a portfolio company owned by private investment funds managed by Wayzata Investment Partners LLC. With no competing bids, Wayzata acquired the business in exchange for $130 million in secured debt plus the loan financing bankruptcy. In connection with its restructuring, Ormet received aggregate commitments of $90 million of DIP Financing, consisting of $30 million in Term DIP financing from Wayzata and a $60 million DIP facility from Wells Fargo, which replaced its $60 million pre-petition revolver with Ormet. PATRIOT COAL: UMWA Statement on 8th Cir. BAP Decision ----------------------------------------------------- The United States Bankruptcy Appellate Panel for the Eighth Circuit on Aug. 21 reversed a decision by federal Bankruptcy Judge Kathy Surratt-States that would have allowed Peabody Energy to stop paying health care benefits for some 3,100 retirees that it had assumed in the spinoff of Patriot Coal. The strongly-worded decision by the three-Judge panel means that Peabody continues to hold responsibility for paying the health care benefits for this group of retirees, who are mostly in the Midwest. "This is a bright ray of good news in what has been a long, dreary period for the retirees, their dependents and widows who have been desperately worried about what's going to happen to their health care," UMWA International President Cecil E. Roberts said. "Peabody has spent years trying to get rid of its obligations to the thousands of retirees who made it the richest coal company in the world," Roberts said. "This decision foils part of that plan. And it makes us even more determined to keep fighting to make sure the company lives up to its entire obligation to these miners." In preparation for the spinoff of Patriot, Peabody signed a 2007 agreement with Heritage Coal Co., which was at the time a Peabody subsidiary that Peabody included in the Patriot spinoff. That agreement allowed Peabody to reduce its contribution levels for retiree health care benefits to the same level as Heritage (Patriot) would pay if such levels were modified in the future. Peabody argued that since Heritage (Patriot) was relieved of all its obligation to pay for retiree health care by Judge Surratt- States, that Peabody should be relieved of its obligation as well. Judge Surratt-States agreed, and issued a ruling in Peabody's favor on May 29. Patriot and Heritage appealed, and their appeal was supported by the UMWA. 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 serves as lead restructuring counsel. Bryan Cave LLP serves as local counsel to the Debtors. 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. PEARL AT WEST: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: The Pearl At West Side Christian Church, a Corporation 1810 South Federal Boulevard Denver, CO 80219 Bankruptcy Case No.: 13-24351 Chapter 11 Petition Date: August 22, 2013 Court: U.S. Bankruptcy Court District of Colorado (Denver) Judge: A. Bruce Campbell Debtor's Counsel: James T. Reed, Esq. 3300 E. First Avenue, Suite 690 Denver, CO 80206 Tel: (303) 321-0800 E-mail: jtreed@firstavelaw.com Scheduled Assets: $1,020,725 Scheduled Liabilities: $390,903 The Company did not file a list of creditors together with its petition. The petition was signed by Charles E. Battle, authorized agent. PERSONAL COMMUNICATIONS: Section 341(a) Meeting Set on Sept. 20 --------------------------------------------------------------- A meeting of creditors in the bankruptcy case of Personal Communications Devices LLC will be held on Sept. 20, 2013, at 10:00 a.m. at Room 562, 560 Federal Plaza, CI, NY. 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 Personal Communications Personal Communications Devices LLC and an affiliate, Personal Communications Devices Holdings, LLC, filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 13-74303) on Aug. 19, 2013, in Central Islip, N.Y., estimating between $100 million and $500 million in both assets and liabilities. Bankruptcy Judge Alan S. Trust oversees the case. The petitions were signed by Raymond F. Kunzmann as chief financial officer. Attorneys at Goodwin Procter, LLP and Togut, Segal & Segal, LLP serve as counsel to the Debtors. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. BG Strategic Advisors, LLC, is the financial advisor. Richter Consulting, Inc., is the investment banker. PETRON ENERGY: Bob Currier Named Chief Financial Officer -------------------------------------------------------- Bob Currier was appointed to serve as the chief financial officer of Petron Energy II, Inc., and has accepted that appointment. In connection with Mr. Currier's appointment as CFO, the Company entered into an Officer Employment Agreement with Mr. Currier, effective July 1, 2013, which provides for an initial term of one year, subject to automatic one year renewals thereafter unless the agreement is terminated in accordance with its terms. Pursuant to the terms of the Employment Agreement, Mr. Currier is entitled to receive an annual base salary of $174,000 and will be issued warrants, on an annual basis, to purchase the common stock of the Company. Mr. Currier will be subject to confidentiality restrictions as well as non-competition restrictions for a period of 12 months following any termination of his employment. Mr. Currier has a CPA certificate and has over 35 years of experience both in the public accounting and corporate sectors. Since 1987, Mr. Currier has been involved with entrepreneurial ventures in industries ranging from medical to real estate to oil and gas. With these companies, he has been responsible for developing financial reporting systems, helping raise capital, implementing internal controls and budget preparation. His experience has included both public and private entrepreneurial companies. He has also worked on SEC reporting engagements on a contract basis. Mr. Currier is not related to any officer or Director of the Company. Amends Certificate of Incorporation Petron Energy, on June 28, 2013, filed an Amended Certificate of Designation with the Nevada Secretary of State revising the terms of the class of the Company's Series B Convertible Preferred Stock. The Amended Designation was approved by the Holders of 100 percent of the issued and outstanding shares of the Preferred Stock on June 27, 2013. The Amended Designation revised the terms pursuant to which shares of the Company's Preferred Stock are converted into shares of the Company's Common Stock. Under the Original Designation, shares of the Company's Preferred Stock were converted into shares of the Company's Common Stock based on a fixed Conversion Price determined in accordance with the terms of the Original Designation. Under the Amended Designation, shares of the Company's Preferred Stock are converted into shares of the Company's Common Stock based on a Conversion Price that will be determined at the time of each Conversion, in accordance with the terms of the Original Designation. About Petron Energy Dallas-based Petron Energy II, Inc., is engaged primarily in the acquisition, development, production, exploration for and the sale of oil, gas and gas liquids in the United States. As of Dec. 31, 2011, the Company is operating in the states of Texas and Oklahoma. In addition, the Company operates two gas gathering systems located in Tulsa, Wagoner, Rogers and Mayes counties of Oklahoma. The pipeline consists of approximately 132 miles of steel and poly pipe, a gas processing plant and other ancillary equipment. The Company sells its oil and gas products primarily to a domestic pipeline and to another oil company. The Company's balance sheet at March 31, 2013, showed $2.24 million in total assets, $3.47 million in total liabilities, and a stockholders' deficit of $1.23 million "The Company has incurred a net loss of $383,589 for the quarter ended March 31, 2013 (2012 - $6,552,438) and at March 31, 2013, had an accumulated deficit of $20,204,812 (2012 ? $19,711,848). While the Company has recognized revenues from operations, the revenues generated are not sufficient to sustain operations. The Company does not have sufficient funds to acquire new business assets or maintain its existing operations at this time. Management's plan is to raise equity and/or debt financing as required but there is no certainty that such financing will be available or that it will be available at acceptable terms. The outcome of these matters cannot be predicted at this time," according to the Company's quarterly report for the period ended March 31, 2013. KWCO, PC, in Odessa, TX, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company's significant operating losses since inception raise substantial doubt about its ability to continue as a going concern. PETTERS COMPANY: GE Unit May Have Aided Ponzi Scheme, Judge Finds ----------------------------------------------------------------- Law360 reported that a Florida investment firm's suit against General Electric Capital Corp. was kept alive by a U.S. Bankruptcy judge who ruled there was enough evidence to support the investors' claim that GECC participated in the third-largest Ponzi scheme in history. According to the report, in a decision handed down Aug. 23, U.S. Bankruptcy Judge Paul G. Hyman tossed eight of Palm Beach Finance Partners LP's nine claims against GECC but kept alive a claim that the lender knew of and perhaps committed at least one overt act that furthered the scheme. About Petters Company, Inc. Based in Minnetonka, Minn., Petters Group Worldwide LLC is a collection of some 20 companies, most of which make and market consumer products. It also works with existing brands through licensing agreements to further extend those brands into new product lines and markets. Holdings include Fingerhut (consumer products via its catalog and Web site), SoniqCast (maker of portable, WiFi MP3 devices), leading instant film and camera company Polaroid (purchased for $426 million in 2005), Sun Country Airlines (acquired in 2006), and Enable Holdings (online marketplace and auction for consumers and manufacturers' overstock inventory). Founder and chairman Tom Petters formed the company in 1988. Petters Company, Inc., is the financing and capital-raising unit of Petters Group Worldwide. Thomas Petters, the founder and former CEO of Petters Group, has been indicted and a criminal proceeding against him is proceeding in the U.S. District Court for the District of Minnesota. Petters Company, Petters Group Worldwide and eight other affiliates filed separate petitions for Chapter 11 protection (Bankr. D. Minn. Lead Case No. 08-45257) on Oct. 11, 2008. In its petition, Petters Company estimated its debts at $500 million and $1 billion. Parent Petters Group Worldwide estimated its debts at not more than $50,000. Fruth, Jamison & Elsass, PLLC, represents Douglas Kelley, the duly appointed Chapter 11 Trustee of Petters Company, Inc., et al. The trustee tapped Haynes and Boone, LLP as special counsel, and Martin J. McKinley as his financial advisor. Petters Aviation, LLC, and affiliates MN Airlines, LLC, doing business as Sun Country Airlines, Inc., and MN Airline Holdings, Inc., filed separate petitions for Chapter 11 bankruptcy protection (Bankr. D. Minn. Case Nos. 08-45136, 08-35197 and 08-35198) on Oct. 6, 2008. Petters Aviation is a wholly owned unit of Thomas Petters Inc. and owner of MN Airline Holdings, Sun Country's parent company. PLC SYSTEMS: Posts $7.9 Million Net Income in Second Quarter ------------------------------------------------------------ PLC Systems Inc. reported net income of $7.94 million on $372,000 of revenues for the three months ended June 30, 2013, as compared with a net loss of $1.44 million on $363,000 of revenues for the same period during the prior year. For the six months ended June 30, 2013, the Company reported net income of $137,000 on $721,000 of revenues, as compared with a net loss of $8.22 million on $383,000 of revenues for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $2.27 million in total assets, $12 million in total liabilities and a $9.73 million stockholders' deficit. "We are pleased with the increase in revenue in the first half of 2013, which is recognized mainly through the sale of single-use sets," commented Mark R. Tauscher, president and chief executive officer of PLC Medical Systems. "The continual increase in these kits substantiates our efforts in expanding patient use of our RenalGuard device to prevent contrast induced Acute Kidney Injury (AKI). We will continue to focus on increasing distribution of the RenalGuard consoles and creating awareness to the medical community." Mr. Tauscher continued, "This quarter, we have started to explore applications outside contrast induced AKI which would expand the use of our CE Marked RenalGuard. In these areas, we are looking for other procedures where RenalGuard's real-time fluid management may be required to produce better patient outcomes." A copy of the Form 10-Q is available for free at: http://is.gd/CFsv0l About PLC Systems Milford, Massachusetts-based PLC Systems Inc. is a medical device company specializing in innovative technologies for the cardiac and vascular markets. The Company's key strategic growth initiative is its newest marketable product, RenalGuard(R). RenalGuard is designed to reduce the potentially toxic effects that contrast media can have on the kidneys when it is administered to patients during certain medical imaging procedures. PLC Systems disclosed a net loss of $8.38 million on $1.08 million of revenue for the year ended Dec. 31, 2012, as compared with a net loss of $5.75 million on $671,000 of revenue in 2011. McGladrey 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 the Company has sustained recurring net losses and negative cash flows from continuing operations, which raises substantial doubt about its ability to continue as a going concern. PLUG POWER: Incurs $9.3 Million Net Loss in Second Quarter ---------------------------------------------------------- Plug Power Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to common shareholders of $9.33 million on $7.12 million of product and service revenue for the three months ended June 30, 2013, as compared with a net loss attributable to common shareholders of $6.47 million on $7.20 million of product and service revenue for the same period during the prior year. For the six months ended June 30, 2013, the Company reported a net loss attributable to common shareholders of $17.91 million on $13.17 million of product and service revenue, as compared with a net loss attributable to common shareholders of $13.06 million on $14.43 million of product and service revenue for the same period a year ago. As of June 30, 2013, the Company had $36.38 million in total assets, $26.96 million in total liabilities, $2.45 million in series C redeemable convertible preferred stock and $6.96 million in total stockholders' equity. Bankruptcy Warning "Our cash requirements relate primarily to working capital needed to operate and grow our business, including funding operating expenses, growth in inventory to support both shipments of new units and servicing the installed base, and continued development and expansion of our products. Our ability to meet our future liquidity needs, capital requirements, and to achieve profitability will depend upon numerous factors, including the timing and quantity of product orders and shipments; the timing and amount of our operating expenses; the timing and costs of working capital needs; the timing and costs of building a sales base; the timing and costs of developing marketing and distribution channels; the timing and costs of product service requirements; the timing and costs of hiring and training product staff; the extent to which our products gain market acceptance; the timing and costs of product development and introductions; the extent of our ongoing and any new research and development programs; and changes in our strategy or our planned activities. If we are unable to fund our operations without additional external financing and therefore cannot sustain future operations, we may be required to delay, reduce and/or cease our operations and/or seek bankruptcy protection," the Company said in the filing. A copy of the Form 10-Q is available for free at: http://is.gd/dCHbDY About Plug Power Plug Power Inc. is a provider of alternative energy technology focused on the design, development, commercialization and manufacture of fuel cell systems for the industrial off-road (forklift or material handling) market. KPMG LLP, in Albany, New York, expressed substantial doubt about Plug Power's ability to continue as a going concern, following their audit of the Company's financial statements for the year ended Dec. 31, 2012, citing the Company's recurring losses from operations and substantial decline in working capital. PROVISION HOLDING: Inks Advertising Agreement with Rite Aid ----------------------------------------------------------- Provision Interactive Technologies, Inc., the operating subsidiary of Provision Holding, Inc., entered into a Point of Sales Advertising Agreement with Rite Aid Headquarters, Corp. Pursuant to the Agreement, Rite Aid has agreed to allow PITI to place 3D holographic based kiosks in all Rite Aid retail stores for the purposes of displaying advertisements, promotions, sweepstakes, samples, coupons and other consumer based or Rite Aid programs that the parties may agree on. The term of the Agreement is three and one-half years from the first month following the date of full installation, and will renew automatically at the end of the three and one-half year term. Pursuant to the Agreement, PITI will have the exclusive right to sell advertising on the 3D Kiosks, and will be the sole provider of 3D and all agreed upon 2D digital signage, interactive and non- interactive, in each Rite Aid location housing a 3D Kiosk. PITI will be responsible for the installation, technical support, and network management of each 3D Kiosk. Rite Aid will be responsible for providing a suitable location for each 3D Kiosk at the front entrance of the store, as well as providing in-store support and marketing support for each 3D Kiosk. Rite Aid also has the right to add programs to utilize the 3D Kiosk as a portal for Rite Aid branded programs. About Provision Holding Based in Chatsworth, Calif., Provision Holding, Inc., is focused on the development and distribution of its patented three- dimensional, holographic interactive displays focused at grabbing and holding consumer attention particularly and initially in the advertising and product merchandising markets. The Company's balance sheet at March 31, 2011, showed $1.16 million in total assets, $6.06 million in total liabilities and a $4.89 million total stockholders' deficit. As reported in the Troubled Company Reporter on Nov. 23, 2010, Farber Hass Hurley LLP, in Camarillo, California, expressed substantial doubt about Provision Holding, Inc.'s ability to continue as a going concern, following the Company's fiscal year ended June 30, 2010. The independent auditors noted that the Company has incurred significant losses in 2010 and 2009 and has negative working capital of $4.3 million. PRESSURE BIOSCIENCES: Incurs $1.2 Million Net Loss in Q2 -------------------------------------------------------- Pressure Biosciences, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q for the period ended June 30, 2013, disclosing a net loss applicable to common shareholders of $1.17 million on $357,736 of total revenue for the three months ended June 30, 2013, as compared with a net loss applicable to common shareholders of $1.08 million on $324,908 for the same period during the prior year. For the six months ended June 30, 2013, the Company reported a net loss applicable to common shareholders of $2.56 million on $728,474 of total revenue, as compared with a net loss applicable to common shareholders of $2.17 million on $630,569 of total revenue for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $1.43 million in total assets, $2.65 million in total liabilities and a $1.21 million total stockholders' deficit. The Company was unable to timely file its report on Form 10-Q for the quarter ended June 30, 2013, due to an unanticipated delay in connection with the Securities and Exchange Commission. A copy of the Form 10-Q is available for free at: http://is.gd/kcy5WR About Pressure Biosciences Pressure BioSciences, Inc., headquartered in South Easton, Massachusetts, holds 14 United States and 10 foreign patents covering multiple applications of pressure cycling technology in the life sciences field. Pressure Biosciences disclosed a net loss applicable to common shareholders of $4.40 million on $1.23 million of total revenue for the year ended Dec. 31, 2012, as compared with a net loss applicable to common shareholders of $5.10 million on $987,729 of total revenue for the year ended Dec. 31, 2011. Marcum 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 the Company has had recurring net losses and continues to experience negative cash flows from operations. These conditions raise substantial doubt about its ability to continue as a going concern. PURADYN FILTER: Incurs $474,000 Net Loss in Second Quarter ---------------------------------------------------------- Puradyn Filter Technologies Incorporated reported a net loss of $474,215 on $600,390 of net sales for the three months ended June 30, 2013, as compared with a net loss of $273,119 on $804,099 of net sales for the same period during the prior year. For the six months ended June 30, 2013, the Company reported a net loss of $890,899 on $1.17 million of net sales, as compared with a net loss of $505,097 on $1.55 million of net sales for the same period during the prior year. Kevin G. Kroger, president and COO, noted, "The second quarter of 2013 was not as strong as the same time period last year, as a couple of our larger distributors' sales are below their business for same period. However, we continue to focus on efforts to add to our overall distributor base, as exemplified by our announcement last week in a release that we have entered into Puradyn's first ever exclusive distributorship agreement in the commercial marine industry with MER Equipment." Kroger concluded, "Our technology is gaining understanding and acceptance; however, there continues to be a slow process of transitioning from a verbal commitment to actual purchase order. The industry trade magazine coverage over the past 12 months or so, which has promoted the direct and indirect benefits of our product's performance to the bottom line, is helping to shorten that time between verbal commitment and actual purchase order release. For the remainder of 2013, we remain confident in our overall strategy and targeted markets." A copy of the press release is available for free at: http://is.gd/5eVsoP About Puradyn Filter Boynton Beach, Fla.-based Puradyn Filter Technologies Incorporated (OTC BB: PFTI) designs, manufactures and markets the puraDYN's Oil Filtration System. Puradyn Filter reported a net loss of $2.22 million on $2.57 million of net sales for the year ended Dec. 31, 2012, as compared with a net loss of $1.61 million on $2.67 million of net sales during the prior year. Liggett, Vogt & Webb, P.A., in Boynton Beach, 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, its total liabilities exceed its total assets, and it has relied on cash inflows from an institutional investor and current stockholder. These conditions raise substantial doubt about the Company's ability to continue as a going concern. QUALITY DISTRIBUTION: G. Enzor Succeeds T. White as New Chairman ---------------------------------------------------------------- Quality Distribution, Inc.'s Board of Directors has elected Chief Executive Officer Gary R. Enzor as its new chairman of the Board of Directors and named Alan H. Schumacher to the newly created position of lead independent director, effective immediately. Mr. Enzor succeeds Thomas M. White who, as previously announced, resigned from the Board in connection with the recently completed share sale by certain shareholders, including Apollo Global Management, LLC. "Gary has been CEO of Quality for six years and during that time has proven himself with outstanding leadership and understanding of the logistics industry," said Mr. Schumacher. "I am pleased that Gary has accepted the additional leadership position of chairman of the Board. His strategic leadership and deep industry knowledge will be of great benefit to both the company and to our shareholders in this added role." Mr. Enzor has been CEO of Quality since 2007 and been a member of the Board of Directors since 2008. Prior to joining the company, Mr. Enzor served as executive vice president and chief financial officer of Swift Transportation Company, Inc., and held executive positions with Dell Computer and Honeywell. The Board named Mr. Schumacher to the newly-created position of lead independent director as a continuation of Quality's focus on sound corporate governance and to maintain strong oversight by the Board's independent directors. As lead independent director, Mr. Schumacher will preside over executive sessions of the independent directors and work closely with the chairman. Four of the five members of the Board are independent. "Alan has distinguished himself as chair of our Audit Committee over the last nine years and his knowledge, experience and insights will serve us well in his new role as lead independent director. Alan's new role will also further our strong governance practices and ensure an independent leadership voice, while facilitating the Board's productivity and efficiency," said Mr. Enzor. Mr. Schumacher has been a director of Quality since May 2004. Mr. Schumacher was a member of the Federal Accounting Standards Advisory Board from 2002 to 2012. From 1977 to 2000, he served in various financial positions at American National Can and American National Can Group, the last four years serving as Executive Vice President and Chief Financial Officer. Mr. Schumacher is a director of BlueLinx Holdings, Inc., EVERTEC, Inc., North American Bus Industries, School Bus Holdings, Inc. and Noranda Aluminum Holding Corporation. The resignations from the Board of Directors of Ali Rashid and Thomas M. White, Chairman of the Board, became effective on Aug. 14, 2013. In connection with the resignations, the Board of Directors committee compositions have changed. The compensation committee is now comprised of: Richard B. Marchese, Thomas R. Miklich and Mr. Schumacher, with Mr. Miklich serving as chairman. The Board has determined that each member of the compensation committee is independent and satisfies the further independence requirements for compensation committee members expected to become effective in 2014, all within the meaning of applicable NASDAQ rules. The corporate governance committee is now comprised of: Mr. Miklich, Annette M. Sandberg and Mr. Schumacher, with Ms. Sandberg serving as chairman. The Board has determined that each member of the corporate governance committee is independent within the meaning of applicable NASDAQ rules. The composition of the audit committee is unchanged while the executive committee has been dissolved. Bylaws Amendment Effective Aug. 14, 2013, the Board of Directors of Quality Distribution amended the Amended and Restated By-Laws of the Company. The amendments empower the Company's newly appointed lead independent director and its Chief Executive Officer, in addition to all of those persons who are currently so empowered, to call special meetings of the Board of Directors. The Amended and Restated By-Laws of the Company are otherwise unchanged. A copy of the amended Bylaws is available for free at: http://is.gd/DvlCFq About Quality Distribution Quality Distribution, LLC, and its parent holding company, Quality Distribution, Inc., are headquartered in Tampa, Florida. The company is a transporter of bulk liquid and dry bulk chemicals. The company's 2010 revenues are approximately $686 million. Apollo Management, L.P., owns roughly 30 percent of the common stock of Quality Distribution, Inc. Quality Distribution reported net income of $50.07 million for the year ended Dec. 31, 2012, as compared with net income of $23.43 million in 2011. As of June 30, 2013, the Company had $474.39 million in total assets, $516.44 million in total liabilities and a $42.04 million total shareholders' deficit. Bankruptcy Warning According to the Company's annual report for the period ended Dec. 31, 2012, the Company had consolidated indebtedness and capital lease obligations, including current maturities, of $418.8 million as of Dec. 31, 2012. The Company must make regular payments under the ABL Facility and its capital leases and semi- annual interest payments under its 2018 Notes. The Company's 2018 Notes issued in the quarter ended Dec. 31, 2010, carry high fixed rates of interest. In addition, interest on amounts borrowed under the Company's ABL Facility is variable and will increase as market rates of interest increase. The Company does not presently hedge against the risk of rising interest rates. The Company's higher interest expense may reduce its future profitability. The Company's future higher interest expense and future redemption obligations could have other important consequences with respect to the Company's ability to manage its business successfully, including the following: * it may make it more difficult for the Company to satisfy its obligations for its indebtedness, and any failure to comply with these obligations could result in an event of default; * it will reduce the availability of the Company's cash flow to fund working capital, capital expenditures and other business activities; * it increases the Company's vulnerability to adverse economic and industry conditions; * it limits the Company's flexibility in planning for, or reacting to, changes in the Company's business and the industry in which the Company operates; * it may make the Company more vulnerable to further downturns in its business or the economy; and * it limits the Company's ability to exploit business opportunities. The ABL Facility matures August 2016. However, the maturity date of the ABL Facility may be accelerated if the Company defaults on its obligations. "If the maturity of the ABL Facility and/or such other debt is accelerated, we may not have sufficient cash on hand to repay the ABL Facility and/or such other debt or be able to refinance the ABL Facility and/or such other debt on acceptable terms, or at all. The failure to repay or refinance the ABL Facility and/or such other debt at maturity would have a material adverse effect on our business and financial condition, would cause substantial liquidity problems and may result in the bankruptcy of us and/or our subsidiaries. Any actual or potential bankruptcy or liquidity crisis may materially harm our relationships with our customers, suppliers and independent affiliates." * * * As reported in the TCR on June 28, 2013, Moody's Investors Service upgraded Quality Distribution, LLC's Corporate Family Rating to B2 from B3 and Probability of Default Rating to B2-PD from B3-PD. The upgrade of Quality's CFR to B2 was largely driven by the expectation that credit metrics will improve over the next twelve to eighteen months, through a combination of EBITDA growth and debt paydowns, to levels consistent with the B2 rating level. The company is in the process of integrating the bolt-on acquisitions made in its Energy Logistics business sector since 2011. RADIOSHACK CORP: William Nebes No Longer Serves as SVP-Mexico ------------------------------------------------------------- William Nebes, III, separated from RadioShack Corporation and no longer will serves as senior vice president - Mexico. Michael Montes will assume Mr. Nebes' role as vice president and managing director of Mexico operations. Mr. Montes is a 12 year veteran of RadioShack, having spent years as a successful field operations leader in both Florida and Texas. About Radioshack Corporation RadioShack (NYSE: RSH) -- -- http://www.radioshackcorporation.com -- is a national retailer of innovative mobile technology products and services, as well as products related to personal and home technology and power supply needs. RadioShack's retail network includes more than 4,300 company-operated stores in the United States, 270 company-operated stores in Mexico, and approximately 1,000 dealer and other outlets worldwide. Radioshack disclosed a net loss of $139.4 million in 2012, as compared with net income of $72.2 million in 2011. As of June 30, 2013, the Company had $1.85 billion in total assets, $1.34 billion in total liabilities and $506.6 million in total stockholders' equity. * * * As reported by the TCR on Nov. 23, 2012, Standard & Poor's Ratings Services lowered its corporate credit and senior unsecured debt ratings on Fort Worth, Texas-based RadioShack Corp. to 'CCC+' from 'B-'. "The downgrade of RadioShack reflects our view that it will be very difficult for the company to improve its gross margin in the fourth quarter of this year, given the highly promotional nature of year-end holiday retailing in the wireless and consumer electronic categories," said Standard & Poor's credit analyst Jayne Ross. In the July 27, 2012, edition of the TCR, Fitch Ratings has downgraded its long-term Issuer Default Rating (IDR) for RadioShack Corporation to 'CCC' from 'B-'. The downgrade reflects the significant decline in RadioShack's profitability, which has become progressively more pronounced over the past four quarters. As reported by the TCR on March 6, 2013, Moody's Investors Service downgraded RadioShack Corporation's corporate family rating to Caa1 from B3 and probability of default rating to Caa1-PD from B3- PD. RadioShack's Caa1 Corporate Family Rating reflects Moody's opinion that the overall business strategy of the company to reverse the decline in profitability has not gained any traction. REEVES DEVELOPMENT: Plan Outline Hearing Continued to Sept. 19 -------------------------------------------------------------- The Bankruptcy Court continued to Sept. 19, 2013, at 10:30 a.m. the hearing to consider the adequacy of information in the Disclosure Statement for Reeves Development Company, LLC's Plan of Reorganization. As reported in the Troubled Company Reporter on March 27, 2013, the Plan provides that on the effective date, all allowed accrued interest calculated at the non-default contractual rate of 4% per annum plus any amounts allowed by the Court will be capitalized and added to the outstanding principal balance due under the note issued by Iberia Bank. The maturity of the Iberia Note will be extended to 60 months from the Effective Date. The Debtor will then repay the New Principal Balance with interest accruing at the non-default contractual rate of 4% per annum from the Effective Date. Holders of Allowed Secured Vendor Claims will receive quarterly interest payments equal to 2% per annum on the outstanding principal balance, plus an amount equal to the claim holders' pro rata share as to the total allowed outstanding principal balances of the total claims of an amount equal to $1,500 per acre for each acre of land sold by the Debtor. Branch Banking and Trust has agreed to a settlement of its unsecured claims against the Debtor in exchange for certain concessions from the Debtor's affiliated company, Houma Dollar Partners, LLC. In exchange for these concessions, the Debtor has agreed to forgo any payments due from Houma Dollar Partners. The arrangement is subject to court approval in the bankruptcy case of Houma Dollar Partners, LLC Case No. 12-20649. The Allowed General Unsecured Claims, which class of claims includes potential contract offset claims of $152,552, will be paid quarterly interest payments equal to 2% of the outstanding balance of the approved claim. The Holder of the Subordinated Claim of Reeves Commercial Properties, LLC, agrees that it will not receive any payments for its claims, until all other approved claims under the Plan have been paid in full. Equity holders have likewise agreed to forgo any payments under the Plan until all creditors have received principal payments totaling 50% of the approved balance as of the effective date. Any payments to Equity holders allowed under the Plan will be limited to an amount equal to the tax liability passed through to the equity holders by the Debtor. About Reeves Development Reeves Development Company, LLC, a commercial and residential real estate developer, filed a Chapter 11 petition (Bankr. W.D. La. Case No. 12-21008) in Lake Charles, Louisiana, on Oct. 30, 2012. The closely held developer was founded in 1998 by Charles Reeves Jr., its sole owner. Reeves Development has about 80 employees and generates about $40 million in annual revenue, according to its Web site. Bankruptcy Judge Robert Summerhays oversees the case. Arthur A. Vingiello, Esq. -- avingiello@steffeslaw.com -- at Steffes, Vingiello & McKenzie, LLC, in Baton Rogue, Louisiana, represents the Debtor as counsel. Reeves Development scheduled assets of $15,454,626 and liabilities of $20,156,597 as of the Petition Date. Affiliate Reeves Commercial Properties, LLC (Bankr. W.D. La. Case No. 12-21009) also sought court protection. REFLECT SCIENTIFIC: Incurs $87,600 Net Loss in Second Quarter ------------------------------------------------------------- Reflect Scientific, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $87,675 on $296,271 of revenues for the three months ended June 30, 2013, as compared with a net loss of $213,005 on $357,697 of revenues for the same period during the prior year. For the six months ended June 30, 2013, the Company reported a net loss of $198,827 on $564,965 of revenues, as compared with a net loss of $472,299 on $682,714 of revenues for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $1.14 million in total assets, $1.30 million in total liabilities and a $162,695 total shareholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/tmobAT About Reflect Scientific Orem, Utah-based Reflect Scientific, Inc., is engaged in the manufacture and distribution of innovative products targeted at the life science market. Customers include hospitals and diagnostic laboratories, pharmaceutical and biotech companies, universities, government and private sector research facilities, and chemical and industrial companies. Reflect Scientific disclosed net income of $200,917 on $1.32 million of revenue for the year ended Dec. 31, 2012, as compared with a net loss of $1.18 million on $1.98 million of revenue in 2011. Mantyla McReynolds, LLC, 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 has experienced recurring losses from operations and negative working capital. The Company is in default on its debentures. These factors raise substantial doubt about its ability to continue as a going concern. REGIONAL EMPLOYERS: Sec. 341(a) Meeting Continued to Sept. 24 ------------------------------------------------------------- The Section 341(a) meeting of creditors in the bankruptcy case of Regional Employers Assurance Leagues Voluntary Employees' Beneficiary Association Trust has been continued to Sept. 24, 2013, at 2:00 p.m. About Regional Employers Assurance Leagues Voluntary Employees' Beneficiary Association Trust Regional Employers Assurance Leagues Voluntary Employees' Beneficiary Association Trust, filed a Chapter 11 petition (Bankr. E.D. Pa. Case No. 13-16440) on July 23, 2013. Judge Jean K. FitzSimon presides over the case. The Debtor estimated assets at $50 million to $100 million and debts at $1 million to $10 million. The petition was signed by John J. Koresko, V, director of trustee and administrator. The Debtor filed a motion to employ Matthew A. Hamermesh, Esq., at Hangley Aronchick Segal Pudlin & Schiller, in Philadelphia, as counsel, but the motion was denied by the Bankruptcy Court. REGIONAL EMPLOYERS: Hearing on UST's Dismissal Bid on Sept. 3 ------------------------------------------------------------- The telephonic hearing to consider the motion of the United States Trustee for Region 3 dismissing the Chapter 11 case of Regional Employers Assurance Leagues Voluntary Employees Beneficiary Association Trust ("REAL VEBA Trust") is continued to Sept. 3, 2013, at 12:00 p.m. and Sept. 4, 2013, at 10:00 a.m. 08/19/2013 The U.S. Trustee for Region 3 is seeking dismissal of the case, arguing, among other things, that: 1. the Debtor has no employees and conducts no business but is administered by other affiliated parties, (who are also Debtors) before the court; 2. the Debtor cannot reorganize and that its bankruptcy has no business purpose; and 3. the sole purpose of filing for bankruptcy relief was an attempt to stay a police powers action bought by the U.S. Department of Labor pending in the U.S. District Court for the Eastern District of Pennsylvania, and hence not commenced in good faith. REAL VEBA Trust and Single Employer Welfare Benefit Plan Trust ("SEWBP Trust") have countered that as business trusts, are eligible to be Debtors, according to court documents filed Aug. 12, 2013. The Debtors also aver in a supplemental memorandum filed Aug. 19, 2013, that the U.S. Trustee's "bad faith" allegations do not warrant dismissal of the Chapter 11 cases. A copy of the supplemental memorandum is available at: http://bankrupt.com/misc/regionalemployers.doc59.pdf The U.S. Trustee has claimed that that the Debtors' voluntary petitions were filed in bad faith, solely for the purpose of frustrating litigation brought by the Secretary of Labor in the United States District Court for the Eastern District of Pennsylvania. About Regional Employers Assurance Leagues Voluntary Employees' Beneficiary Association Trust Regional Employers Assurance Leagues Voluntary Employees' Beneficiary Association Trust, filed a Chapter 11 petition (Bankr. E.D. Pa. Case No. 13-16440) on July 23, 2013. Judge Jean K. FitzSimon presides over the case. The Debtor estimated assets at $50 million to $100 million and debts at $1 million to $10 million. The petition was signed by John J. Koresko, V, director of trustee and administrator. The Debtor filed a motion to employ Matthew A. Hamermesh, Esq., at Hangley Aronchick Segal Pudlin & Schiller, in Philadelphia, as counsel, but the motion was denied by the Bankruptcy Court. RESIDENTIAL CAPITAL: To Present Plan for Confirmation on Nov. 19 ---------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Residential Capital LLC will appear in bankruptcy court on Nov. 19 for approval of the reorganization plan funded in part by a $2.1 billion settlement with the non-bankrupt parent Ally Financial Inc. According to the report, the bankruptcy judge in New York approved disclosure materials on Aug. 23, allowing creditors to vote on the plan for Ally's mortgage-servicing subsidiary. Nov. 19 is also the date for a hearing on approval of class suits pending 10 years on behalf of homeowners who filed $1.87 billion in claims for wrongful settlement charges and improper title examination fees. The report notes that approval of the disclosure statement doesn't mean the confirmation hearing will be non-controversial. ResCap fended off several objections to the disclosure statement by saying they aren't properly raised until the confirmation hearing. Creditors will finish voting on the plan on Oct. 21, the last day for filing objections to plan. The vote tally will be filed by Nov. 5. Last week the judge extended ResCap's exclusive plan-filing rights until Nov. 14. Because bankruptcy law doesn't allow exclusivity to last more than 18 months, creditors would theoretically be entitled to submit a competing plan if ResCap's is delayed or defeated. The report discloses that the most vigorous opposition to the plan may come from junior secured creditors who contend they should be paid in full, with post-bankruptcy interest. Even if that class votes against the plan, it still could be approved using the so- called cramdown process. Last week the bankruptcy judge approved procedures for giving notice about the class settlement. If approved in November, the settlement will give the class of homeowners an approved unsecured claim against Residential Funding Co. LLC for $300 million. For the claim, $56.6 million will be placed in a special trust for distribution to class members, after payment of attorneys' fees. The Chapter 11 plan provides holders of ResCap's $2.147 billion in general unsecured claims a 36.3 percent recovery, according to the disclosure statement. Unsecured creditors with $2 billion in claims against the so-called GMACM companies are predicted to have a 30.1 percent recovery. About Residential Capital Residential Capital LLC, the unprofitable mortgage subsidiary of Ally Financial Inc., filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012. Neither Ally Financial nor Ally Bank is included in the bankruptcy filings. ResCap, one of the country's largest mortgage originators and servicers, was sent to Chapter 11 with 50 subsidiaries amid "continuing industry challenges, rising litigation costs and claims, and regulatory uncertainty," according to a company statement. ResCap disclosed $15.68 billion in assets and $15.28 billion in liabilities at March 31, 2012. Centerview Partners LLC and FTI Consulting are acting as financial advisers to ResCap. Morrison & Foerster LLP is acting as legal adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is the conflicts counsel. Rubenstein Associates, Inc., is the public relations consultants to the Company in the Chapter 11 case. Morrison Cohen LLP is advising ResCap's independent directors. Kurtzman Carson Consultants LLP is the claims and notice agent. Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves as counsel to Ally Financial. ResCap sold most of the businesses for a combined $4.5 billion. The Bankruptcy Court in November 2012 approved ResCap's sale of its mortgage servicing and origination platform assets to Ocwen Loan Servicing, LLC and Walter Investment Management Corporation for $3 billion; and its portfolio of roughly 50,000 whole loans to Berkshire Hathaway for $1.5 billion. Bankruptcy Creditors' Service, Inc., publishes RESIDENTIAL CAPITAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Residential Capital LLC and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). REVSTONE INDUSTRIES: Has Until Oct. 31 to File Chapter 11 Plan -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware further extended Revstone Industries, LLC, et al.'s exclusive periods to file a Chapter 11 Plan until Oct. 31, 2013, and solicit acceptances for that Plan until Dec. 31. As reported in the Troubled Company Reporter on Aug. 12, 2013, the Debtors sought exclusivity extensions as to all parties, except for the Official Committee of Unsecured Creditors for the Chapter 11 case of Revstone. The Debtors related that a previous extension order provided that the extension of the exclusivity period as to the Revstone Committee would immediately terminate in the event that the Debtors breached any of the milestones, and failed to cure any breach within the grace period after following receipt of a notice from the Revstone Committee asserting the breach. On June 19, the exclusivity periods terminated as to the Revstone Committee. On July 8, the Revstone Committee filed a Plan of Reorganization for the Debtors. An Aug. 21 hearing was set for approval of the Revstone Committee's Disclosure Statement. On July 22, Revstone filed its own Plan of Reorganization. The Debtor also scheduled a hearing on Aug. 21 to seek approval of the Debtor's Disclosure Statement. About Revstone Industries et al. Lexington, Kentucky-based Revstone Industries LLC, a maker of truck parts, filed for Chapter 11 bankruptcy (Bankr. D. Del. Case No. 12-13262) on Dec. 3, 2012. Judge Brendan Linehan Shannon oversees the case. Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP represents Revstone. In its petition, Revstone estimated under $50 million in assets and debts. Affiliate Spara LLC filed its Chapter 11 petition (Bankr. D. Del. Case No. 12-13263) on Dec. 3, 2012. Lexington-based Greenwood Forgings, LLC (Bankr. D. Del. Case No. 13-10027) and US Tool & Engineering LLC (Bankr. D. Del. Case No. 13-10028) filed separate Chapter 11 petitions on Jan. 7, 2013. Judge Shannon also oversees the cases. Duane David Werb, Esq., at Werb & Sullivan, serves as bankruptcy counsel to Greenwood and US Tool. Greenwood estimated $1 million to $10 million in assets and $10 million to $50 million in debts. US Tool & Engineering estimated under $1 million in assets and $1 million to $10 million in debts. The petitions were signed by George S. Homeister, chairman. Metavation, also known as Hillsdale Automotive, LLC, joined parent Revstone in Chapter 11 on July 22, 2013 (Bankr. D. Del. Case No. 13-11831) to sell the bulk of its assets to industry rival Dayco for $25 million, absent higher and better offers. Metavation has tapped Pachulski as its counsel. Pachulski also serves as counsel to Revstone and Spara. Metavation also has tapped McDonald Hopkins PLC as special counsel, and Rust Consulting/Omni Bankruptcy as claims agent and to provide administrative services. Mark L. Desgrosseilliers, Esq., at Womble Carlyle Sandridge & Rice, LLP, represents the Official Committee of Unsecured Creditors in Revstone's case. RICEBRAN TECHNOLOGIES: Incurs $1.9 Million Net Loss in Q2 --------------------------------------------------------- RiceBran Technologies filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to the Company's shareholders of $1.96 million on $9.38 million of revenues for the three months ended June 30, 2013, as compared with a net loss attributable to the Company's shareholders of $201,000 on $9.71 million of revenues for the same period during the prior year. For the six months ended June 30, 2013, the Company reported a net loss attributable to common shareholders of $7.78 million on $18.09 million of revenues, as compared with a net loss attributable to the Company's shareholders of $9.03 million on $19.45 million of revenues for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $42.55 million in total assets, $36.84 million in total liabilities and $8.01 million in total temporary equity, and a $2.29 million total deficit attributable to the Company's shareholders. A copy of the Form 10-Q is available for free at: http://is.gd/bmuCrh About RiceBran Scottsdale, Ariz.-based RiceBran Technologies, a California corporation, is a human food ingredient and animal nutrition company focused on the procurement, bio-refining and marketing of numerous products derived from rice bran. As reported in the TCR on April 15, 2013, BDO USA, LLP, in Phoenix, Arizona, expressed substantial doubt about RiceBran Technologies' ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations resulting in an accumulated deficit of $204.4 million at Dec. 31, 2012. "Although the Company emerged from bankruptcy in November 2010, there continues to be substantial doubt about its ability to continue as a going concern." SAEXPLORATION HOLDINGS: Gets Nasdaq Listing Non-Compliance Notice ----------------------------------------------------------------- SAExploration Holdings, Inc. on Aug. 26 disclosed that, due to the previously disclosed delay in the filing of its Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, SAE received a notification letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC on August 20, 2013. The letter, which was issued in accordance with standard Nasdaq procedure and states that SAE is no longer in compliance with Nasdaq Listing Rule 5250(c)(1), which requires listed companies to timely file periodic financial reports with the Securities and Exchange Commission. As previously disclosed, SAE made a determination to restate its financial statements for the quarter ended March 31, 2013 to make certain adjustments to direct operating expenses between Q1 2013 and Q2 2013. SAE was not able to timely file its Form 10-Q for Q2 2013 because of the time involved in completing the restatement. The Nasdaq letter has no immediate effect on the listing of SAE's common stock. Pursuant to the letter, SAE has 60 days from the date of the letter, or until October 20, 2013, to submit a plan to regain compliance with the Nasdaq Listing Rules. SAE intends to file its Form 10-Q for the quarter ended June 30, 2013 on August 27, 2013, well in advance of the due date for the plan and should thereafter be able to regain compliance with the NASDAQ continued listing requirements. This announcement is being made in compliance with Nasdaq Listing Rules 5810(b). About SAExploration Holdings, Inc. Based in Calgary, Canada, SAE -- http://www.saexploration.com-- is a holding company of various subsidiaries which cumulatively form a geographically diversified seismic data acquisition company. SAE provides a full range of 2D, 3D and 4D seismic data services to its clients, including surveying, program design, logistical support, data acquisition, processing, camp services, catering, environmental assessment and community relations. SAE services its multinational client base from offices in Canada, Alaska, Peru, Columbia, Bolivia, Papua New Guinea, New Zealand and Brazil. SALON MEDIA: Incurs $688,000 Net Loss in June 30 Quarter -------------------------------------------------------- Salon Media Group, Inc., reported a net loss of $688,000 on $1.19 million of net revenues for the three months ended June 30, 2013, as compared with a net loss of $1.53 million on $836,000 of net revenues for the same period during the prior year. The Company's balance sheet at June 30, 2013, showed $1.42 million in total assets, $3.02 million in total liabilities and a $1.59 million total stockholders' deficit. "Salon has continued to make progress in the June quarter towards profitability," said Cynthia Jeffers, CEO and CTO of Salon Media Group. "The 43% increase in revenue and 38% increase in traffic were the result of the Company's continued focus on excellence in journalism, our unique editorial voice, our focus on improving the user experience across platforms and our innovations in our unique ad solutions, especially on mobile." A copy of the press release is available for free at: http://is.gd/dOyoPr About Salon Media San Francisco, Calif.-based Salon Media Group (OTC BB: SLNM.OB) -- http://www.Salon.com/-- is an online news and social networking company and an Internet publishing pioneer. For the 12 months ended March 31, 2013, the Company had a net loss of $3.93 million on $3.64 million of net revenues, as compared with a net loss of $4.09 million on $3.47 million of net revenues for the same period a year ago. Burr Pilger Mayer, Inc., in San Francisco, California, issued a "going concern" qualification on the consolidated financial statements for the fiscal year ended March 31, 2012. The independent auditors noted that the Company has suffered recurring losses and negative cash flows from operations and has an accumulated deficit of $112.5 million at March 31, 2012, which raise substantial doubt about the Company's ability to continue as a going concern. SAN BERNARDINO, CA: Judge's Ruling Looms on Bankruptcy, Pensions ---------------------------------------------------------------- Tim Reid, writing for Reuters, reported that the city of San Bernardino is expected to learn on Aug. 28 if it is eligible for bankruptcy protection despite the opposition of California's powerful public pension system -- an important test for the federal law used by Detroit and other U.S. cities burdened by pension payment costs. According to the report, most observers expect federal bankruptcy judge Meredith Jury to rule that cash-strapped San Bernardino, 60 miles east of Los Angeles, is eligible for Chapter 9 protection, a year after it declared bankruptcy having effectively run out of cash to meet its day-to-day obligations. A city of just 240,000, San Bernardino could be a precursor for what is shaping up as a central issue in the far bigger bankruptcy case of Detroit: whether an insolvent city can cut already- promised pensions for its workers and pay less into its public retirement funds, the report said. In an unprecedented move, San Bernardino halted its biweekly payments to the California Public Employees' Retirement System (Calpers) for an entire year after declaring bankruptcy last August, the report related. San Bernardino has now resumed payments to Calpers, America's biggest pension fund and San Bernardino's largest creditor, but no city has ever halted employer payments to Calpers before, the report said. The $260 billion pension fund is the only party objecting to San Bernardino's bankruptcy, saying that pension funds should not be treated like other creditors. Calpers may appeal the eligibility decision. About San Bernardino, Calif. San Bernardino, California, filed an emergency petition for municipal bankruptcy under Chapter 9 of the U.S. Bankruptcy Code (Bankr. C.D. Cal. Case No. 12-28006) on Aug. 1, 2012. San Bernardino, a city of about 210,000 residents roughly 65 miles (104 km) east of Los Angeles, estimated assets and debts of more than $1 billion in the bare-bones bankruptcy petition. The city council voted on July 10, 2012, to file for bankruptcy. The move lets San Bernardino bypass state-required mediation with creditors and proceed directly to U.S. Bankruptcy Court. The city is represented that Paul R. Glassman, Esq., at Stradling Yocca Carlson & Rauth. San Bernardino joined two other California cities in bankruptcy: Stockton, an agricultural center of 292,000 east of San Francisco, and Mammoth Lakes, a mountain resort town of 8,200 south of Yosemite National Park. SANTEON GROUP: Incurs $4,700 Net Loss in Second Quarter ------------------------------------------------------- Santeon Group Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $4,712 on $1.35 million of revenues for the three months ended June 30, 2013, as compared with net income of $1,232 on $926,643 of revenues for the same period during the prior year. For the six months ended June 30, 2013, the Company reported net income of $44,923 on $2.56 million of revenues, as compared with a net loss of $74,065 on $1.70 million of revenues for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $1.16 million in total assets, $980,179 in total liabilities and $185,470 in total stockholders' equity. "Santeon's strong performance during the second quarter 2013 reflects the increasing demand within the public and private sectors for enterprise agility. During the quarter we added four new revenue-generating employees, and received a full quarter of productivity from three others who joined the Company during the first quarter, as we served new and existing clients with expert training, coaching and consulting services," commented Dr. Ash Rofail, chief executive officer of Santeon. "Looking ahead, we are poised to continue our growth trajectory as more organizations look to drive operational efficiencies. We are particularly excited about growth opportunities for our public sector business as budget cuts prompt federal, state and local agencies to leverage technology and optimize practices to run more efficiently and increase their ability to respond to tighter budgets demands." A copy of the Form 10-Q is available for free at: http://is.gd/lZsXKO About Santeon Group Reston, Va.-based Santeon Group, Inc., is a diversified software products and services company specializing in the transformation and optimization of business through the deployment or the development of innovative products and services using Agile mindsets in the information systems/technology, healthcare, environmental/energy and media sectors. The Company's clients include state and local governments, federal agencies and private sector customers. As reported by the Troubled Company Reporter on Aug. 24, 2012, RBSM LLP, in New York, N.Y., expressed substantial doubt about Santeon's ability to continue as a going concern, following its audit of the Company's financial position and results of operations for the fiscal year ended Dec. 31, 2011. The independent auditors noted that the Company has suffered losses from operations and is experiencing difficulty in generating sufficient cash flows to meet its obligations and sustain its operations. The Company reported net income of $185,815 on $4.27 million of revenue for the full year 2012, as compared with a net loss of $475,333 on $2.24 million of revenue for the full year 2011. SANUWAVE HEALTH: Incurs $818,000 Net Loss in Second Quarter ----------------------------------------------------------- SANUWAVE Health, Inc., reported a net loss of $818,331 on $160,617 of revenue for the three months ended June 30, 2013, as compared with a net loss of $1.42 million on $210,357 of revenue for the same period during the prior year. For the six months ended June 30, 2013, the Company reported a net loss of $6.18 million on $361,851 of revenue, as compared with a net loss of $3.25 million on $448,897 of revenue for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $1.61 million in total assets, $13.36 million in total liabilities and a $11.74 million total stockholders' deficit. "We are very pleased with the pace of enrollment and the effort by the trial sites in our on-going Phase III dermaPACE clinical trial," commented Joseph Chiarelli, chief executive officer of SANUWAVE. "The trial sites have been diligent in identifying and screening patients that can demonstrate the potential of the dermaPACE device in addressing this debilitating condition. While there are many variables that can affect the pace of enrollment in the next few months, including vacations and weather, we will use our best efforts to keep enrollment on-track for completion in the first quarter of 2014." A copy of the press release is available for free at: http://is.gd/hwEdtN About SANUWAVE Health Alpharetta, Ga.-based SANUWAVE Health, Inc., is an emerging global regenerative medicine company focused on the development and commercialization of noninvasive, biological response activating devices for the repair and regeneration of tissue, musculoskeletal and vascular structures. BDO USA, LLP, in Atlanta, Georgia, 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, has a net working capital deficit, and is economically dependent upon future issuances of equity or other financing to fund ongoing operations, each of which raise substantial doubt about its ability to continue as a going concern. SANUWAVE Health reported a net loss of $6.40 million on $769,217 of revenue for the year ended Dec. 31, 2012, as compared with a net loss of $10.23 million on $802,572 of revenue in 2011. SCC KYLE: Court Denies Whitney Bank's Bid to Stay Plan Approval --------------------------------------------------------------- The Hon. H. Christopher Mott of the U.S. Bankruptcy Court for the Western District of Texas denied Whitney Bank's motion for stay in the Chapter 11 case of SCC Kyle Partners, Ltd. On July 1, 2013, the Court entered its Order confirming the Debtor?s Second Amended Plan of Reorganization. Whitney Bank has appealed from the Confirmation Order, and seeks a stay pending appeal. The Reorganized Debtor, in its response to Whitney Bank's motion, stated that, among other things: 1. Whitney Bank does not face irreparable injury; and 2. a stay will harm the Reorganized Debtor. About SCC Kyle Partners Austin, Tex.-based SCC Kyle Partners, Ltd., filed for Chapter 11 (Bankr. W.D. Tex. Case No. 12-11978) on Aug. 31, 2012. Judge H. Christopher Mott presides over the case. Cleveland R. Burke, Esq., Eric J. Taube, Esq., and Mark Curtis Taylor, Esq., at Hohmann, Taube & Summers, LLC, in Austin, Tex., represent the Debtor as counsel. In its petition, the Debtor disclosed both assets and debts of between $10 million and $50 million. The petition was signed by Scott A. Deskins, president of SCC Kyle Partners, GP, LLC, general partner. The Court on July 1, 2013, confirmed the Debtor's Second Amended and Modified Plan of Reorganization, dated June 28, 2013. Pursuant to the Plan, the secured claim of the Lender group (Class III) will be paid over 5 years from the Effective Date from cash proceeds on hand at the time of confirmation and ongoing sales of the remaining Property and future tax incentive revenues, with interest-only payments to be made monthly beginning on the 15th day after the Effective Date at 7% per annum, or such other rate as is determined by the Court not to exceed 8%. All remaining principal, interest and costs will be due on the 15th day of the 60th month from the Effective Date. SERVICEMASTER CO: S&P Lowers CCR to 'B-'; Outlook Stable -------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its corporate credit rating to 'B-' from 'B' on Memphis, Tenn.-based The ServiceMaster Co. The outlook is stable. S&P also lowered its issue-level ratings on ServiceMaster's senior secured revolving credit and term facilities to 'B' (one notch higher than S&P's corporate credit rating on the company) from 'B+'. S&P's recovery ratings on these facilities are '2', indicating its expectation of substantial (70% to 90%) recovery for lenders in the event of a payment default. In addition, S&P lowered its issue-level rating on the company's senior unsecured notes to 'CCC+' (one notch lower than the corporate credit rating) from 'B-'. S&P's recovery rating on these notes is '5', indicating its expectation for modest (10% to 30%) recovery for lenders in the event of a payment default. "The one-notch downgrade reflects the downward revision of our forecast as ServiceMaster continues to experience operating difficulties with its TruGreen segment. We now forecast debt-to- EBITDA leverage could remain more than 8x through year-end 2014, as the company continues to address operational issues at its TruGreen division and will start the spring 2014 selling season with a lower customer count," said credit analyst Linda Phelps. "Previously, we estimated leverage would be in the the mid- to high-7x area for full-year 2013. The company's leverage for the 12 months ended June 30, 2013, increased sequentially to more than 9.0x from about 8.0x for the 12 months ended March 31, 2013." The rating outlook is stable, reflecting S&P's expectation for liquidity to remain adequate and its view that operating performance could begin to improve in 2014. To maintain a stable outlook, S&P will look for liquidity to remain adequate. S&P could lower its rating if it believes the current capital structure is no longer sustainable at current debt levels. This could occur if liquidity becomes constrained, possibly because of further deterioration in profitability at the TruGreen segment and Terminix or American Home Shield operating performance declines. Alternatively, S&P could raise the rating one-notch if it believes leverage is sustainable in the low-to mid-7x area. As S&P expects debt to remain relatively stable, the company's EBITDA would need to increase about 25% for leverage to drop to this level, possibly through improved profitability at its TruGreen division and continued growth of its other divisions. SIONIX CORP: To Restate March 31 Quarter Form 10-Q -------------------------------------------------- The management of Sionix Corporation concluded that the financial statements for the quarter ended March 31, 2013, included in the Company's quarterly report on Form 10-Q for the quarter then ended March 31, 2013, should no longer be relied upon. The March 31, 2013, interim financial statements will be restated to correct certain errors in determination of derivative liability and gain (loss) on change in fair value of derivative liability, and other liabilities and the March 31, 2013, 10-Q will be amended to reflect that restatement. Specifically, the effect of the conversion feature of certain convertible notes was incorrectly included in calculation of derivative liabilities of beneficiary conversion feature. Additionally, the total shares of warrants outstanding exceeded the total common stock authorized and available to issue during the quarter ended March 31, 2013, hence the Company would need to reclassify the equity to liability. The Company assessed the impact of the corrections of this error on previously reported numbers and concluded that such correction is material to the previous interim financial statements. Moreover, in reaching this conclusion, the management considered both the quantitative and qualitative characteristics of the adjustment. The management has considered the effect of the restatement on the Company's prior conclusions as to the adequacy and effectiveness of its internal control over financial reporting and disclosure controls and procedures. The management has concluded that a material weakness in internal controls over financial reporting existed as of March 31, 2013. About Sionix Corp. Los Angeles, Calif.-based Sionix Corporation designs, develops, markets and sells cost-effective water management and treatment solutions intended for use in the oil and gas, agriculture, disaster relief, and municipal (both potable and wastewater) markets. Sionix incurred a net loss of $5.76 million for the year ended Sept. 30, 2012, compared with a net loss of $6.30 million during the prior year. The Company's balance sheet at March 31, 2013, showed $1.01 million in total assets, $8.95 million in total liabilities and a $7.93 million total stockholders' deficit. Kabani & Company, Inc., in Los Angeles, California, 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 cumulative losses of $37,560,000. In addition, the company has had negative cash flow from operations for the years ended Sept. 30, 2012, of $2,568,383. These factors raise substantial doubt about the Company's ability to continue as a going concern. SIONIX CORP: Delays Form 10-Q for Second Quarter ------------------------------------------------ Sionix Corporation has experienced a delay in completing the information necessary for including in its quarterly report on Form 10-Q, in particular its financial statements, for the quarter ended June 30, 2013. The Company expects to file the June 30, 2013, quarterly report within five days of the prescribed due date. About Sionix Corp. Los Angeles, Calif.-based Sionix Corporation designs, develops, markets and sells cost-effective water management and treatment solutions intended for use in the oil and gas, agriculture, disaster relief, and municipal (both potable and wastewater) markets. Sionix incurred a net loss of $5.76 million for the year ended Sept. 30, 2012, compared with a net loss of $6.30 million during the prior year. The Company's balance sheet at March 31, 2013, showed $1.01 million in total assets, $8.95 million in total liabilities and a $7.93 million total stockholders' deficit. Kabani & Company, Inc., in Los Angeles, California, 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 cumulative losses of $37,560,000. In addition, the company has had negative cash flow from operations for the years ended Sept. 30, 2012, of $2,568,383. These factors raise substantial doubt about the Company's ability to continue as a going concern. SOUTH LAKES DAIRY: Plan Approval Hearing Continued to Sept. 12 -------------------------------------------------------------- The Bankruptcy Court continued to Sept. 12, 2013, at 9 a.m., the hearing to consider confirmation of South Lakes Dairy Farm's Plan of Reorganization. As reported in the Troubled Company Reporter on July 24, 2013, the Official Committee of Unsecured Creditors of South Lakes Dairy Farm objected to the approval of the Debtor's Plan of Reorganization dated March 20, 2013. According to the Disclosure Statement dated May 9, 2013, describing the Plan, the Debtor believes that income from current operations will be sufficient to repay about 14% of its unsecured claims. Payments on the convenience class of general unsecured claims will be paid a pro rata share of $4,000 within 30 days of the Effective Date of the Plan. The general unsecured claimants in excess of $3,500 will be paid $1,200,000 pro-rata over a period of five years trough pro-rata disbursements of $20,000 per month. The general unsecured claims in excess of $3,500 will receive net proceeds, if any, of any preference or fraudulent conveyance recoveries in addition to the $1,200,000. A full-text copy of the Disclosure Statement dated May 9, 2013, is available for free at: http://bankrupt.com/misc/SOUTHLAKES_DSMay9.PDF About South Lakes Dairy South Lakes Dairy Farm is a California partnership engaged in the dairy cattle 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. 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. The Debtor disclosed, in an amended schedules, $25,281,583 in assets and $26,193,406 in liabilities as of the Chapter 11 filing. The Debtor disclosed $19.5 million in assets and $25.4 million in liabilities in a prior iteration of the schedules. 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. Ronald A. Clifford, Esq., at Blakley & Blakeley LLP, represents the Official Committee of Unsecured Creditors as counsel. SOUTHERN MONTANA: Noteholders' $46MM Claim Waived in Amended Plan ----------------------------------------------------------------- Lee A. Freeman, as the duly appointed Chapter 11 trustee, filed with a Montana bankruptcy court a First Amended Plan of Reorganization and Disclosure Statement for Southern Montana Electric Generation and Transmission Cooperative, Inc. The First Amended Plan of Reorganization filed by Lee A. Freeman, as the duly appointed Chapter 11 trustee, for Southern Montana Electric Generation and Transmission Cooperative, Inc. embodies a settlement with Noteholders which resolves the issue of the value of the Noteholders' collateral and under which the Noteholders' current claim for a $46 million "make-whole amount" is waived. New details of the Amended Plan were revealed in a disclosure statement dated Aug. 14, 2013, a copy of which is available for free at http://bankrupt.com/misc/SOUTHERNMONTANA_1stAmdDSAug14.PDF The First Amended Plan retained other provisions like the continued operation of the Debtor; significant recoveries to secured creditors; a distribution to unsecured creditors that is equal to if not greater than what they would receive if the Debtor were to be liquidated; and reasonable rates to the Debtor's members for at least the next decade. As noted in older plan versions, the First Amended Plan also contemplates a 10-year, all requirements power supply agreement between Reorganized Southern and Morgan Stanley Capital Group, Inc. (the "MSCGI Agreement") under which all of the Debtor's power and energy needs will be met with under market-based prices that are, in real dollars, at historical lows. The MSCGI Agreement replaces a prepetition, long-term power supply agreement with PPL Montana that required the Debtor to purchase quantities of power that greatly exceeded its needs and at prices that turned out to be significantly over-market. Disclosure Statement Hearing Judge Ralph Kirscher will convene a hearing on Sept. 24 at 1:30 p.m. to consider approval of the First Amended Disclosure Statement. Formal written objections to the Disclosure Statement may be filed with the Court no later than Sept. 18. About Southern Montana Electric Based in Billings, Montana, Southern Montana Electric Generation and Transmission Cooperative, Inc., was formed to serve five other electric cooperatives. The city of Great Falls later joined as the sixth member. Including the city, the co-op serves a population of 122,000. In addition to Great Falls, the service area includes suburbs of Billings, Montana. Southern Montana filed for Chapter 11 bankruptcy (Bankr. D. Mont. Case No. 11-62031) on Oct. 21, 2011. Southern Montana estimated assets of $100 million to $500 million and estimated debts of $100 million to $500 million. Timothy Gregori signed the petition as general manager. Malcolm H. Goodrich, Esq., at Goodrich Law Firm, P.C., in Billings, Montana, serves as the Debtor's counsel. After filing for reorganization in October, the co-op agreed to a request for appointment of a Chapter 11 trustee. Lee A. Freeman was appointed as the Chapter 11 trustee in December 2011. He is represented by Joseph V. Womack, Esq., at Waller & Womack, and John Cardinal Parks, Esq., Bart B. Burnett, Esq., Robert M. Horowitz, Esq., and Kevin S. Neiman, Esq., at Horowitz & Burnett, P.C. Harold V. Dye, Esq., at Dye & Moe, P.L.L.P., in Missoula, Montana, represents the Unsecured Creditors' Committee as counsel. SOUTHERN MONTANA: Can Access Cash Collateral Thru Year End ---------------------------------------------------------- Judge Ralph B. Kirschner, in mid-August 2013, approved a stipulation for Southern Montana Electric Generation and Transmission Cooperative, Inc.'s continued access of the cash collateral through Dec. 31, 2013, in accordance with a supplemental budget. As a condition for the continued use of the Noteholders' Cash Collateral, the Debtor is obligated to pay monthly adequate protection payments to the Noteholders and to pay the Noteholders' reasonable fees and expenses. The Cash Collateral Order also serves as a final determination as to the validity of the Noteholders' liens on substantially all of the Debtor's assets and included, among other things, a waiver of any right to surcharge the Noteholders under Section 506(c) of the Bankruptcy Code. About Southern Montana Electric Based in Billings, Montana, Southern Montana Electric Generation and Transmission Cooperative, Inc., was formed to serve five other electric cooperatives. The city of Great Falls later joined as the sixth member. Including the city, the co-op serves a population of 122,000. In addition to Great Falls, the service area includes suburbs of Billings, Montana. Southern Montana filed for Chapter 11 bankruptcy (Bankr. D. Mont. Case No. 11-62031) on Oct. 21, 2011. Southern Montana estimated assets of $100 million to $500 million and estimated debts of $100 million to $500 million. Timothy Gregori signed the petition as general manager. Malcolm H. Goodrich, Esq., at Goodrich Law Firm, P.C., in Billings, Montana, serves as the Debtor's counsel. After filing for reorganization in October, the co-op agreed to a request for appointment of a Chapter 11 trustee. Lee A. Freeman was appointed as the Chapter 11 trustee in December 2011. He is represented by Joseph V. Womack, Esq., at Waller & Womack, and John Cardinal Parks, Esq., Bart B. Burnett, Esq., Robert M. Horowitz, Esq., and Kevin S. Neiman, Esq., at Horowitz & Burnett, P.C. Harold V. Dye, Esq., at Dye & Moe, P.L.L.P., in Missoula, Montana, represents the Unsecured Creditors' Committee as counsel. SOUTHERN MONTANA: Court OKs MRV's 2nd Round of Expanded Services ---------------------------------------------------------------- A Montana bankruptcy court approved a second set of expanded scope of services rendered by MR Valuation Consulting, LLC, for Lee A. Freeman, as Chapter 11 trustee of Southern Montana Electric Generation and Transmission Cooperative, Inc. The recently-approved expanded services primarily relate to MRV assisting the Trustee in negotiations with the Montana Department of Revenue (MDOR) for challenges to the valuation of the Highwood Generating Station (HGS). MRV was initially retained by the Debtor in January 2013 for an appraisal of the HGS for a $41,200 flat fee. At around May 2013, the Trustee first expanded the scope of MRV's employment to provide fair market and liquidation values of HGS and other creditor collateral for a $95,000 flat fee. When the Trustee received a $39.16 million valuation of the HGS from the MDOR in mid-May 2013, it sought MRV's immediate assistance for negotiations with the MDOR. MRV, though Mark Rodriguez, then assisted the Trustee timely challenge the valuation and negotiate a resolution, which resulted in a consensual valuation of HGS for 2013 tax purposes of $23,150,678, and a decrease by nearly half of the estimated taxes to about $341,000 (subject to new mill rates for Montana Levy Districts that are published in the fall of 2013). The Trustee agreed to compensate MRV a flat fee of $45,000 for these second set of expanded services. About Southern Montana Electric Based in Billings, Montana, Southern Montana Electric Generation and Transmission Cooperative, Inc., was formed to serve five other electric cooperatives. The city of Great Falls later joined as the sixth member. Including the city, the co-op serves a population of 122,000. In addition to Great Falls, the service area includes suburbs of Billings, Montana. Southern Montana filed for Chapter 11 bankruptcy (Bankr. D. Mont. Case No. 11-62031) on Oct. 21, 2011. Southern Montana estimated assets of $100 million to $500 million and estimated debts of $100 million to $500 million. Timothy Gregori signed the petition as general manager. Malcolm H. Goodrich, Esq., at Goodrich Law Firm, P.C., in Billings, Montana, serves as the Debtor's counsel. After filing for reorganization in October, the co-op agreed to a request for appointment of a Chapter 11 trustee. Lee A. Freeman was appointed as the Chapter 11 trustee in December 2011. He is represented by Joseph V. Womack, Esq., at Waller & Womack, as weel as John Cardinal Parks, Esq., Bart B. Burnett, Esq., Robert M. Horowitz, Esq., and Kevin S. Neiman, Esq., at Horowitz & Burnett, P.C. Harold V. Dye, Esq., at Dye & Moe, P.L.L.P., in Missoula, Montana, represents the Unsecured Creditors' Committee as counsel. SPENDSMART PAYMENTS: Delays Form 10-Q for Second Quarter -------------------------------------------------------- The Spendsmart Payments Company has been unable, without unreasonable effort or expense, to timely compile all information for the financial statements and related disclosures required to be included in its quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2013. The Company expects to file the quarterly report on or before the extension period. About SpendSmart San Diego, Cal.-based The SpendSmart Payments Company is a Colorado corporation. Through the Company's subsidiary incorporated in the state of California, The SpendSmart Payments Company, the Company issues and services prepaid cards marketed to young people and their parents. The Company is a publicly traded company trading on the OTC Bulletin Board under the symbol "SSPC." The Company's balance sheet at March 31, 2013, showed $2.77 million in total assets, $1.82 million in total current liabilities, and stockholders' equity of $947,763. STRAFFORD COUNTY, NH: Moody's Raises GO Bond Ratings to 'Ba1' ------------------------------------------------------------- Moody's Investors Service has upgraded to Ba1 from Ba2 the rating on Strafford County's (NH) $18.2 million of outstanding general obligation bonds. The outlook is revised to positive from stable. The county's debt is secured by its unlimited tax pledge. Rating Rationale: The Ba1 rating reflects the county's stabilized but still weak financial position, limited liquidity, and heavy reliance on cash flow borrowing. The rating also reflects a stabilizing tax base and low debt burden. The positive outlook reflects the county's ability to maintain market access for cash flow borrowing, a continued trend of positive financial operations and management's commitment to increase reserves and reduce dependence on cash flow borrowing. Strengths: - Stabilizing tax base with low unemployment - Minimal long-term debt burden - Stable property tax revenue collections Challenges: - High reliance on cash flow borrowing to fund operations and debt service - Uncertainty of long-term nursing home expenditure pressures Outlook: The positive outlook reflects the county's ability to maintain market access for cash flow borrowing, continued trend of positive financial operations and management's commitment to increase reserves and reduce dependence on cash flow borrowing over the near term. What could change the rating - UP? - Sustained record of structurally balanced operations and improved liquidity levels - Rebuilding of General Fund reserves - Decreased reliance on tax and revenue anticipation note borrowing What could change the rating - DOWN? - Structurally imbalanced operations resulting in continued financial weakness - Increased levels of cash-flow borrowing - Failure to successfully execute reserve replenishment plan The principal methodology used in this rating was General Obligation Bonds Issued by US Local Governments published in April 2013. STUMP FUNERAL: Case Summary & 6 Unsecured Creditors --------------------------------------------------- Debtor: Stump Funeral Home, Inc. 107 Market Street Grantsville, WV 26147 Tel: (304) 354-6104 Bankruptcy Case No.: 13-00985 Chapter 11 Petition Date: August 22, 2013 Court: U.S. Bankruptcy Court Northern District of West Virginia (Clarksburg) Judge: Patrick M. Flatley Debtor's Counsel: Joseph W. Caldwell, Esq. CALDWELL & RIFFEE 3818 MacCorkle Avenue South East, Suite 101 P.O. Box 4427 Charleston, WV 25364 Tel: (304) 925-2100 Fax: (304) 925-2193 E-mail: joecaldwell@frontier.com Estimated Assets: $500,001 to $1,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/wvnb13-00985.pdf The petition was signed by John S. Stump, president. SUNVALLEY SOLAR: Incurs $157,000 Net Loss in Second Quarter ----------------------------------------------------------- Sunvalley Solar, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $157,031 on $516,228 of revenues for the three months ended June 30, 2013, as compared with net income of $24,157 on $763,612 of revenues for the same period last year. For the six months ended June 30, 2013, the Company reported a net loss of $546,179 on $528,884 of revenues, as compared with a net loss of $234,429 on $941,708 of revenues for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $5.26 million in total assets, $4.69 million in total liabilities and $568,318 in total stockholders' equity. A copy of the Form 10-Q is available for free at: http://is.gd/wLPwR3 Exhibit Added Sunvalley Solar, Inc., has amended its quarterly report for the period ended June 30, 2013, that was originally filed with the U.S. Securities and Exchange Commission on Aug. 14, 2013. The amendment was filed to submit Exhibit 101 as it was erroneously excluded from the Original Filing. A copy of the amended Form 10- Q is available for free at http://is.gd/MW6wHl About Sunvalley Solar Sunvalley Solar, Inc., is a California-based solar power technology and system integration company. Since the inception of its business in 2007, the company has focused on developing its expertise and proprietary technology to install residential, commercial and governmental solar power systems. Sunvalley Solar disclosed a net loss of $1.76 million on $3.74 million of revenue for the year ended Dec. 31, 2012, as compared with a net loss of $398,866 on $5.82 million of revenue for the year ended Dec. 31, 2011. Sadler, Gibb & Associates, LLC, in Salt Lake City, UT, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company had losses from operations of $1,767,902 and accumulated deficit of $3,125,692, which raises substantial doubt about its ability to continue as a going concern. SYNAGRO TECHNOLOGIES: Exits Chapter 11 Under Control of EQT ----------------------------------------------------------- Patrick Fitzgerald, writing for Daily Bankruptcy Review, reported that waste-processor Synagro Technologies Inc . emerged for bankruptcy protection on Aug. 22 under the control of Sweden's EQT Partners and having slashed $200 million in debt from its books. About Synagro Synagro Technologies, Inc., based in Houston, Texas, is the recycler of bio-solids and other organic residuals in the U.S. and is one of the largest national companies focused exclusivity on biosolids recycling, which has a market size of $2 billion. The Company was formed in 1986, under the name RPM Marketing, Inc. Synagro's corporate headquarters is currently located in Houston, Texas but is in the process of being transferred to White Marsh, Maryland. The Company also has offices in Lansdale, Pennsylvania, Rayne, Louisiana, and Watertown, Connecticut. Synagro Technologies and 29 affiliates sought Chapter 11 protection (Bankr. D. Del. Case no. 13-11041) on April 24, 2013. The lead debtor estimated assets and debts at $10 million to $50 million. Synagro Technologies disclosed $8,714,426 in assets and $430,489,161 in liabilities. Synagro was owned by The Carlyle Group at the time of the bankruptcy filing. It was acquired in April 2007 by Carlyle in a $741 million transaction. Synagro is being advised by Mark S. Chehi, Esq., at the law firm of Skadden Arps Slate Meagher & Flom, along with financial adviser AlixPartners and investment bankers Evercore Partners. Kurtzman Carson & Consultants serves as notice and claims agent. No creditors' committee has been appointed in the cases by the United States Trustee. TC GLOBAL: Intends to File Liquidation Plan ------------------------------------------- TC Global, Inc.'s operating agreements, real estate leases, personal property leases, and other agreements have either been assigned to and assumed by Global Baristas LLC pursuant to an Asset Purchase Agreement, dated Jan. 3, 2013, or rejected pursuant to orders of the United States Bankruptcy Court for the Western District of Washington. On Jan. 11, 2013, the Bankruptcy Court approved a sale of substantially all of the Company's assets to Global Baristas pursuant to the Purchase Agreement. The Purchase Agreement provided for the sale of substantially all of the Company's assets in consideration for a total purchase price of up to $9,150,000. The transaction closed on June 30, 2013. The Company has discontinued operations and sold substantially all of its assets to Global Baristas. The Company is preparing and intends to file a liquidating plan in Chapter 11 providing for the distribution of its remaining assets in accordance with the laws of bankruptcy as approved and ordered by the Bankruptcy Court. All employees, including Scott Pearson, the chief executive officer, and Catherine Campbell, the chief financial and accounting officer of the Company, were terminated, and Mr. Pearson resigned as a director of the Company. Ms. Campbell continues to provide financial and administrative services pursuant to a consulting agreement with the Company in order to assist with the liquidation of the bankrupt estate and dissolution of the Company . About TC Global Headquartered in Seattle, Washington, TC Global, Inc., dba Tully's Coffee -- http://www.tullyscoffeeshops.com/-- is a specialty coffee retailer and wholesaler. Through company owned, licensed and franchised specialty retail stores in Washington, Oregon, California, Arizona, Idaho, Montana, Colorado, Wyoming and Utah, throughout Asia with Tully's Coffee International, and with its global alliance partner Tully's Coffee Japan, Tully's premium coffees are available at 545 branded retail locations globally. TC Global Inc. filed a Chapter 11 petition (Bankr. W.D. Wash. Case No. 12-20253-KAO) on Oct. 10, 2012. The Debtor is represented by attorneys at Bush Strout & Kornfeld LLP, in Seattle. The Debtor disclosed assets of $4.9 million and debt totaling $3.7 million, including $2.6 million in unsecured claims. The Seattle-based chain has 57 company-owned stores and 12 franchised. There are another 71 franchises in grocery stores, schools and airports. Tully's will close nine stores following bankruptcy. Bloomberg report discloses that Tully's sold the wholesale and distribution business in 2009, generating $40 million that allowed a $5.9 million distribution to shareholders. TELECONNECT INC: Incurs $906,000 Net Loss in June 30 Quarter ------------------------------------------------------------ Teleconnect Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $906,479 on $30,670 of sales for the three months ended June 30, 2013, as compared with a net loss of $940,814 on $7,328 of sales for the same period during the prior year. For the nine months ended June 30, 2013, the Company reported a net loss of $2.93 million on $315,177 of sales, as compared with a net loss of $2.99 million on $119,194 of sales for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $5.49 million in total assets, $12.18 million in total liabilities, all current, and $6.69 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/H9tnGs About Teleconnect Teleconnect Inc., headquartered in Breda, The Netherlands, was incorporated under the laws of the State of Florida on Nov. 23, 1998. With its ownership in Hollandsche Exploitatie Maatschappij BV (HEM), a Dutch entity established in 2007, the Company's main activities are the manufacturing, sales and lease of age validation equipment and the performance of age validation. The Company also sells and maintains vending solutions (through Mediawizz, The Netherlands), is involved in the broadcasting of in-store commercial messages using the age validation equipment between age checks (through HEM), and plans to develop market survey activities in the future (through Giga Matrix, The Netherlands). Coulter & Justus, P.C., in Knoxville, Tennessee, expressed substantial doubt about Teleconnect's ability to continue as a going concern following the financial results for the yar ended Sept. 30, 2012. The independent auditors noted that the Company has suffered recurring losses from operations and has a net capital deficiency in addition to a working capital deficiency. The Company reported a net loss of $3.9 million on $143,910 of sales in fiscal 2012, compared with a net loss of $3.3 million on $112,722 of sales in fiscal 2011. THERMON HOLDING: Moody's Withdraws B1 Ratings --------------------------------------------- Moody's Investors Service has withdrawn all assigned ratings to Thermon Holding Corp. The company redeemed in full its 9.5% senior secured notes due 2017. Moody's withdrew the Corporate Family Rating and Probability of Default Rating as well. Ratings withdrawn: Issuer: Thermon Holding Corp. B1 Corporate Family Rating B1-PD Probability of Default Rating SGL-2 Speculative Grade Liquidity Rating B1, LGD4 - 57% Senior Secured Notes Rating outlook withdrawn Ratings Rationale: Thermon Holding Corp. is a provider of a comprehensive suite of equipment, design and engineering services and turnkey solutions in the heat tracing industry. Thermon is headquartered in San Marcos, TX. TN-K ENERGY: Incurs $50,000 Net Loss in Second Quarter ------------------------------------------------------ TN-K Energy Group Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $50,650 on $87,649 of total revenue for the three months ended June 30, 2013, as compared with net income of $1.09 million on $1.64 million of total revenue for the same period during the prior year. For the six months ended June 30, 2013, the Company reported a net loss of $134,587 on $136,938 of total revenue, as compared with net income of $4.19 million on $1.79 million of total revenue for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $2.42 million in total assets, $3.93 million in total liabilities and a $1.50 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/N3IeTN About TN-K Energy Crossville, Tenn.-based TN-K Energy Group, Inc., an independent oil exploration and production company, engaged in acquiring oil leases and exploring and developing crude oil reserves and production in the Appalachian basin. TN-K Energy disclosed net income of $3.97 million on $1.88 million of total revenue for the year ended Dec. 31, 2012, as compared with net income of $1.25 million on $1.88 million of total revenue in 2011. Liggett, Vogt & Webb, P.A., 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 incurred recurring operating losses and will have to obtain additional financing to sustain operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. TRANS-LUX CORP: Incurs $723,000 Net Loss in Second Quarter ---------------------------------------------------------- Trans-Lux Corporation filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $723,000 on $4.87 million of total revenues for the three months ended June 30, 2013, as compared with net income of $739,000 on $6.83 million of total revenues for the same period a year ago. For the six months ended June 30, 2013, the Company reported a net loss of $1.02 million on $8.88 million of total revenues, as compared with a net loss of $931,000 on $12.44 million of total revenues for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $19.69 million in total assets, $18.83 million in total liabilities and $859,000 in total stockholders' equity. Going Concern "In light of the unprecedented instability in the financial markets and the severe slowdown in the overall economy, we do not have adequate liquidity, including access to the debt and equity capital markets, to operate our business in the manner in which we have historically operated. As a result, our short-term business focus has been to preserve our liquidity position. Unless we are successful in obtaining additional liquidity, we believe that we will not have sufficient cash and liquid assets to fund normal operations for the next 12 months. In addition, the Company's obligations under its pension plan exceeded plan assets by $6.4 million at December 31, 2012 and the Company has a significant amount due to their pension plan due over the next 12 months. In addition, the Company has not made the December 1, 2009, 2010 and 2011 required sinking fund payments on its 9 1/2% Subordinated debentures due 2012 (the "Debentures") and the June 1, 2010, 2011 and 2012 as well as its December 1, 2010, 2011 and 2012 interest payments totaling $301,200. In addition, the Company did not make the March 1, 2010, 2011 and 2012 as well as its September 1, 2010 and 2011 interest payments totaling $2.1 million on its 8 1/4% Limited convertible senior subordinated notes due 2012 (the "Notes"). As a result, if the Company is unable to (i) obtain additional liquidity for working capital, (ii) make the required minimum funding contributions to the pension plan (iii) make the required sinking fund payments on the Debentures and (iv) make the required principal and interest payments on the Notes and the Debentures, there would be a significant adverse impact on the financial position and operating results of the Company. "Moreover, because of the uncertainty surrounding our ability to obtain additional liquidity and the potential of the noteholders and/or trustees to give notice to the Company of a default on either the Debentures or the Notes, our independent registered public accounting firm 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, however the opinion further states that the uncertainty regarding the ability to make the required principal and interest payments on the Notes and the Debentures, in addition to the significant amount due to the Company's pension plan over the next 12 months, raises substantial doubt about our ability to continue as a going concern," the Company said in the report. A copy of the Form 10-Q is available for free at: http://is.gd/gYXMwz About Trans-Lux Corporation Norwalk, Conn.-based Trans-Lux Corporation (NYSE Amex: TLX) is a designer and manufacturer of digital signage display solutions for the financial, sports and entertainment, gaming and leasing markets. For the year ended Dec. 31, 2012, the Company incurred a net loss of $1.36 million on $23.02 million of total revenues, as compared with a net loss of $1.41 million on $23.75 million of total revenues during the prior year. TRIUS THERAPEUTICS: Norman Shifrin Files Lawsuit Over Merger Plan ----------------------------------------------------------------- A lawsuit was filed in the Court of Chancery of the State of Delaware against Trius, and each member of Trius' board of directors, and Cubist Pharmaceuticals Inc. The action was brought by Norman Shifrin and Irmgard Kaufhold, who claim to be stockholders of Trius, on their own behalf, and seeks certification as a class action on behalf of all of Trius' stockholders. The complaint alleges that the defendants breached their fiduciary duties, or aided and abetted the breach of fiduciary duties, owed to Trius' stockholders in connection with the Offer and the Merger. The complaint seeks injunctive relief enjoining the Offer and the Merger, or, in the event the Offer or the Merger has been consummated prior to the court's entry of final judgment, rescinding the Offer and the Merger. The complaint also seeks an accounting for all damages and an award of costs, including a reasonable allowance for attorneys' and experts' fees and expenses. BRGO Corporation, a wholly owned direct subsidiary of Cubist Pharmaceuticals, Inc., previously offered to purchase all of the outstanding shares of common stock, per value $0.0001 per share, of Trius Therapeutics, Inc., at a price of $13.50 per Share, without interest thereon and less any applicable withholding taxes plus one contingent value right per Share, which represents the contractual right to receive up to $2.00 per Share, upon the terms and conditions set forth in the Offer to Purchase dated Aug. 13, 2013. About Trius Therapeutics San Diego, Calif.-based Trius Therapeutics, Inc. (Nasdaq: TSRX) -- http://www.triusrx.com/-- is a biopharmaceutical company focused on the discovery, development and commercialization of innovative antibiotics for serious, life-threatening infections. The Company's first product candidate, torezolid phosphate, is an IV and orally administered second generation oxazolidinone being developed for the treatment of serious gram-positive infections, including those caused by MRSA. In addition to the company's torezolid phosphate clinical program, it is currently conducting two preclinical programs using its proprietary discovery platform to develop antibiotics to treat infections caused by gram-negative bacteria. Trius Therapeutics incurred a net loss of $53.92 million in 2012, a net loss of $18.25 million in 2011 and a $23.86 million net loss in 2010. As of June 30, 2013, the Company had $74.05 million in total assets, $19.37 million in total liabilities and $54.68 million in total stockholders' equity. UBS WILLOW: Two Law Firms File FINRA Arbitration Claim ------------------------------------------------------ The Law Firm of David R. Chase, P.A., headed by a former SEC Prosecutor, and Silver Law Group has filed a FINRA arbitration on behalf of an investor in the UBS Willow Fund LLC. The case is FINRA Number 13-02221. In October 2012 investors were informed that the Willow Fund would be liquidated, after having sustained substantial losses. In a March 2013 New York Times article on the UBS Willow Fund, it was reported that it had suffered losses of approximately 80% in the first three quarters of 2012 after its manager made a radical change in investment strategy and "piled into some colossally bad derivative trades." "The investors, some of whom hadn't realized they were holding a portfolio filled with risky bets against the debt of European nations, were stunned," says the article. The Willow Fund's exposure to credit default swaps began to significantly increase, and by the end of 2008, while corporate bonds amounted to only 6% of the portfolio, the value of credit default swaps rocketed to 25% of the portfolio, from only 2.6% in 2007. By 2009, credit default swaps amounted to 43% of the Willow Fund's portfolio composition, the article claims. Silver Law Group and the Law Firm of David R. Chase are investigating whether UBS accurately offered and sold the Willow Fund as a safe, secure and suitable investment, particularly to retirees and those customers seeking minimal volatility with stable income, and whether it adequately disclosed the true material risks involved, particularly after the significant material change in the fund's strategy and portfolio composition. The Law Firms are also investigating whether clients' portfolios were over-concentrated in the Willow Fund investment. UBS customers who purchased the Willow Fund are encouraged to contact our law firms to explore whether they can recover their losses. All calls handled on a confidential, no obligation basis. Cases taken on a contingency fee basis, meaning no attorney's fee owed to the law firms if no recovery. To discuss your legal options for a potential recovery of your losses, investors should contact either: Scott L. Silver, Esq. David R. Chase, Esq. Silver Law Group Law Office of David R. Chase, P.A. 11780 W. Sample Road 1700 East Las Olas Boulevard, Suite 305 Coral Springs, FL 33065 Fort Lauderdale, FL 33301 855-755-4799 (Toll Free) 888-337-8625 (Toll Free) E-mail: ssilver@silverlaw.com E-mail: david@davidchaselaw.com Web site: http://www.silverlaw.com Silver Law Group is a nationally-recognized securities law firm headquartered in South Florida, with satellite offices in New York and Washington, DC, representing investors worldwide with their claims for losses due to stockbroker misconduct and brokerage firm negligence in securities litigation and arbitration matters. The firm has successfully recovered multi-million dollar awards for its clients against the country's top brokerage houses. The Law Office of David R. Chase, P.A., based in Fort Lauderdale, Florida, represents investors nationwide. David Chase has been practicing for 20 years, is AV-Rated by Martindale-Hubbell -- its highest competence and ethics rating -- and previously served as a Securities and Exchange Commission (SEC) Prosecutor. UNILAVA CORP: Delays Form 10-Q for Second Quarter ------------------------------------------------- Unilava Corporation was unable, without unreasonable effort and expense, to prepare its financial statements for the quarter ended June 30,2013, in sufficient time to allow the timely filing of the Form 10-Q report. About Unilava Corporation Unilava Corporation (OTC BB: UNLA) -- http://www.unilava.com/-- is a diversified communications holding company incorporated under the laws of the State of Wyoming in 2009. Unilava and its subsidiary brands provide a variety of communications services, products, and equipment that address the needs of corporations, small businesses and consumers. The Company is licensed to provide long distance services in 41 states throughout the U.S. and local phone services across 11 states. Through its carrier- grade microwave wireless broadband infrastructure and broadband Internet access partners, the Company also offers mobile and high- definition IP-hosted voice services to residential customers and corporate clients. Additionally, Unilava delivers a comprehensive and integrated suite of fee-based online and mobile advertising and web services to a broad array of business enterprises. Headquartered in San Francisco, the Company has regional offices in Chicago, Seoul, Hong Kong, and Beijing. Unilava reported a net loss of $1.58 million in 2012, as compared with a net loss of $2.98 million in 2011. Shelley International CPA, in Mesa, AZ, 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 losses from operations, which raises substantial doubt about its ability to continue as a going concern. UNITEK GLOBAL: Delays Second Quarter Form 10-Q for Restatement -------------------------------------------------------------- UniTek Global Services, Inc., on April 12, 2013, announced that, as a result of an internal investigation conducted by the Audit Committee of the Company's Board of Directors with the assistance of outside independent counsel and a forensic accounting firm, it was determined that several employees of the Company's Pinnacle Wireless division engaged in fraudulent activities that resulted in improper revenue recognition. As a result of the revenue recognition issues, the Audit Committee concluded, after consultation with Ernst & Young LLP, the Company's independent registered public accounting firm, that the Company would restate its financial information as of and for the interim periods ended July 2, 2011, Oct. 1, 2011, March 31, 2012, June 30, 2012, and Sept. 29, 2012, and as of and for the interim period and year ended Dec. 31, 2011. On Aug. 9, 2013, the Company completed its restatement and subsequently filed its annual report on Form 10-K for the fiscal year ended Dec. 31, 2012, which included restated financial information for all of the restated periods previously described. As a result of the restatement, the Company continues to experience delays in completing its quarterly reports on Form 10- Q. On May 16, 2013, the Company filed a Notification of Late Filing on Form 12b-25 with the Securities and Exchange Commission to disclose that it had experienced delays in completing the preparation of its Form 10-Q for the quarterly period ended March 30, 2013. The Company has also experienced delays in completing its Form 10-Q for the quarterly period ended June 29, 2013. With the recent completion of its restatement, the Company is working to prepare and file those quarterly reports as soon as possible. About UniTek Global Services 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 June 11, 2013, Standard & Poor's Ratings Services lowered its corporate credit rating on Blue Bell, Pa.- based UniTek Global Services Inc. to 'D' from 'CCC'. "The downgrade follows UniTek's announcement that it did not make a scheduled interest payment on May 29, 2013, on its senior secured term loan due 2018, which we consider to be a default under our timeliness of payments criteria," said Standard & Poor's credit analyst Michael Weinstein. In the June 11, 2013, edition of the TCR, Moody's Investors Service lowered UniTek Global Services, Inc.'s probability of default and corporate family ratings to Ca-PD/LD and Ca, respectively. The Ca corporate family rating reflects UniTek's missed interest payment on the term loan which is considered a default under Moody's definition, the heightened possibility of another default event, continued delays in the filing of restated financials including the last two audits, management turnover, the potential loss of the company's largest customer and other business and legal risks stemming from issues at the company's Pinnacle subsidiary. US WIRELESS: Unveils Forward Guidance & Moving Forward Plans ------------------------------------------------------------ Further to the Company's news releases of July 26 and August 22, 2013, US Wireless Online, Inc. reported its forward guidance and moving forward plans. On or about June 28, 2011 the Company completed a reverse split of 500-1. The Company's authorized shares were capped at 100,000,000 as of July 3, 2012. The Company's float is estimated to be 12,356,800 shares based on the internal records and the fact that neither registration statement nor any shares were issued by the Company. The company did issue 3 tranches of restricted stock totaling 86,065,205 in escrow in 2011 and 2012. Those shares still remain in escrow. The purpose of the 86 million share issuance was three fold. Firstly, to settle any and all outstanding debts that remains on the books (approximately $3 million dollars). Secondly, to develop an introductory broker (IB), with the outlook to buy an existing off-shore brokerage namely http://www.pointzerofx.comand a cloud computing business. This is well under way. PointZeroFX, a Seychelles-based financial company and an wholly owned subsidiary of USA based US Wireless Inc. Ticker Symbol UWRL quoted on OTC Markets, is pleased to announce that PointZeroFX has successfully launched its test trading platform. Today, UWRL is a full time IB representing pointzerofx.com. Lastly, the balance of the stock is targeted to secure a merger with India IT company http://www.keytechnolabs.com This merger was completed as per the previous announcement of July 26 and August 22, 2013. The Company is using this opportunity to address other corporate matters that may be of interest to its loyal followers, and FAQ from our followers. The Company is aware that some Company critics may be disseminating certain disinformation about the Company activities on various Internet chat boards. To that end, the Company management comments as follows. The ex-management (Circa 2007) and ex-operating subsidiaries of UWRL were and may still be target of certain civil proceedings. UWRL has not been named nor does it expect to be. This action has nothing to do with UWRL. A default judgment of about $2.5 million against UWRL may be null and void for several reasons. One the "creditor" has been sanctioned by US authorities and second reason is the creditor appears to be out of business. The Company is of the opinion that if and any creditor comes forward with this debt, the same is expected to be settled at approximate pennies on the dollar. Obviously, should the Company settle, the escrow stock will return back to the treasury. All of this activity has created an "overhang" which prevented the Company to subscribe to OTC Markets. The Company is of the opinion that OTC Markets may finally lift this sanction. This opinion is based upon the recent invitation received by the Company from OTC Markets that will allow UWRL to commence its alternative reporting. In 2012 the Company has also redomiciled to Wyoming from Nevada. As previously disclosed in a news release of May 28, 2013 the company has changed its name to Mercor Portfolio, Inc. with State of Wyoming. The Company continues to trade under the ticker UWRL as the management is well under way of furnishing FINRA with documents they requested from the Company and the transfer agent to complete the switch over, to the new name and symbol. The new board, officers and Directors will be named on the Wyoming site and filed accordingly very shortly. The Company will be answering all shareholders concerns directly via new contact e-mail address uwrl@keytechnolabs.com The Company expects to settle accounting with the Transfer Agent and submit its share structure to FINRA shortly. The Company is of the opinion that the unstable share price fluctuation seen recently is a one-time event for the reasons which are apparent on their face. With the aforementioned re-organization and restructuring complete, the management sees a bright and positive future ahead as it ventures further into the cloud computing area space which has seen the market grow from $964 million in 2010 to $3.9 billion in 2013. More details will follow on a timely and frequent basis. Headquartered in Clearwater, Florida, US Wireless Online, Inc. (pinksheets:UWRL) -- - http://uswirelessonline.com/-- through its subsidiary, Go Green Electronic Recycling, engages in the management and recycling of electronic waste in the United States. The company involves in the recycling of desktops, laptops, monitors, copiers, printers, fax machines, telecommunication equipment/systems, networking equipment, cell phones, testing equipment, mice, keyboards, speakers, ballasts, batteries, and servers. It also engages in refurbishing and remarketing of electronic products. The company was formerly known as Cash Foods, Inc. and changed its name to US Wireless Online, Inc. in May 2003. US Wireless Online, Inc. was incorporated in 1998. US Wireless Online Inc. operates as a subsidiary of IElement Corp. US Wireless Online, Inc. filed for Chapter 11 bankruptcy protection on October 9, 2007. USEC INC: Global X Held 23.1% Equity Stake at July 31 ----------------------------------------------------- Global X Management Company LLC disclosed in an amended Schedule 13G filed with the U.S. Securities and Exchange Commission that as of July 31, 2013, it beneficially owned 1,143,733 shares of common stock of USEC Inc. representing 23.1 percent of the shares outstanding. Global X previously reported beneficial ownership of 7,594,240 common shares or 6.12 percent equity stake as of Dec. 31, 2012. A copy of the amended regulatory filing is available for free at http://is.gd/zw3I0Y About USEC Inc. Headquartered in Bethesda, Maryland, USEC Inc. (NYSE: USU) -- http://www.usec.com/-- supplies enriched uranium fuel for commercial nuclear power plants. USEC disclosed a net loss of $1.20 billion in 2012, as compared with a net loss of $491.1 million in 2011. The Company's balance sheet at March 31, 2013, showed $1.52 billion in total assets, $1.99 billion in total liabilities, and a $469.6 million stockholders' deficit. As of June 30, 2013, the Company had $1.51 billion in total assets, $1.93 billion in total liabilities and a $419.2 million stockholders' deficit. PricewaterhouseCoopers LLP, in McLean, Virginia, 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 reported net losses and a stockholders' deficit at Dec. 31, 2012, and is engaged with its advisors and certain stakeholders on alternatives for a possible restructuring of its balance sheet, which raise substantial doubt about its ability to continue as a going concern. Bankruptcy Warning "A delisting of our common stock by the NYSE and the failure of our common stock to be listed on another national exchange could have significant adverse consequences. A delisting would likely have a negative effect on the price of our common stock and would impair stockholders' ability to sell or purchase our common stock. As of December 31, 2012, we had $530 million of convertible notes outstanding. A 'fundamental change' is triggered under the terms of our convertible notes if our shares of common stock are not listed for trading on any of the NYSE, the American Stock Exchange, the NASDAQ Global Market or the NASDAQ Global Select Market. Our receipt of a NYSE continued listing standards notification described above did not trigger a fundamental change. If a fundamental change occurs under the convertible notes, the holders of the notes can require us to repurchase the notes in full for cash. We do not have adequate cash to repurchase the notes. In addition, the occurrence of a fundamental change under the convertible notes that permits the holders of the convertible notes to require a repurchase for cash is an event of default under our credit facility. Accordingly, the exercise of remedies by holders of our convertible notes or lenders under our credit facility as a result of a delisting would have a material adverse effect on our liquidity and financial condition and could require us to file for bankruptcy protection," according to the Company's annual report for the year ended Dec. 31, 2012. * * * USEC Inc. carries 'Caa1' corporate and probability of default ratings, with "developing" outlook, from Moody's. As reported by the TCR on Aug. 17, 2012, Standard & Poor's Ratings Services lowered its ratings on USEC Inc., including the corporate credit rating to 'CCC' from 'CCC+'. "The downgrade reflects our assessment of USEC's long-term viability after the company publicly stated that it will be difficult to continue enrichment operations at the Paducah Gaseous Diffusion Plant after a one-year multiparty agreement to extend operations expires in May 2013," said Standard & Poor's credit analyst Maurice S. Austin. USMART MOBILE: Incurs $648,000 Net Loss in Second Quarter --------------------------------------------------------- USmart Mobile Device Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q for the period ended June 30, 2013, disclosing a net loss of $648,107 on $25 million of net sales, as compared with a net loss of $1.11 on $31.36 million of net sales for the same period last year. For the six months ended June 30, 2013, the Company reported net income of $240,227 on $39.46 million of net sales, as compared with a net loss of $1.98 million on $73.77 million of net sales for the same period during the prior year. The Company's balance sheet at June 30, 2013, showed $32.56 million in total assets, $33.65 million in total liabilities and a $1.08 million total stockholders' deficit. "As of June 30, 2013, the Company had total current assets of $5,819,223 and current liabilities of $33,484,635. This raises substantial doubt about the Company's ability to continue as a going concern," the Company said in the quarterly report. The Company was unable to file its Form 10-Q for the period ended June 30, 2013, on a timely manner due to the Company requiring additional time to work internally with its staff and externally with its outside auditors to prepare and finalize the quarterly report. A copy of the Form 10-Q is available for free at: http://is.gd/8r1Nbn About USmart Mobile Del.-based USmart Mobile, previously known as ACL Semiconductors Inc., is currently engaged in the production, manufacturing and distribution of smartphones, electronic products and components in Hong Kong Special Administrative Region and the People's Republic of China through its operating subsidiaries. VERITY CORP: Incurs $477,500 Net Loss in June 30 Quarter -------------------------------------------------------- Verity Corp. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss attributable to the Company of $477,522 on $1.42 million of total revenues for the three months ended June 30, 2013, as compared with a net loss attributable to the Company of $172,025 on $98,812 of total revenues for the same period during the prior year. For the nine months ended June 30, 2013, the Company reported a net loss attributable to the Company of $7.02 million on $2.10 million of total revenues, as compared with a net loss attributable to the Company of $375,197 on $345,130 of total revenues for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $4.69 million in total assets, $7.06 million in total liabilities and a $2.36 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/2rOMZ3 Sioux Falls, South Dakota-based Verity Corp., formerly AquaLiv Technologies, Inc., is the parent of Verity Farms II, Inc., Aistiva Corporation (formerly AquaLiv, Inc.). Verity Farms II is dedicated to providing consumers with safe, high-quality and nutritious food sources through sustainable crop and livestock production. Aistiva's technology alters the behavior of organisms, including plants and humans, without chemical interaction. Aistiva's platform technology influences biological processes naturally and without chemical interaction. To date, Aistiva has released products in the industries of water treatment, skincare, and agriculture. Bongiovanni & Associates, C.P.A.'s, in Cornelius, North Carolina, expressed substantial doubt about AquaLiv's ability to continue as a going concern following their audit of the Company's financial statements for the year ended Sept. 30, 2012. The independent auditors noted that the Company has incurred recurring losses from operations, has a liquidity problem, and requires funds for its operational activities. VICTORY ENERGY: Delays Q2 Form 10-Q Due to Restatements ------------------------------------------------------- Victory Energy Corporation's quarterly report on Form 10-Q for the period ended June 30, 2013, was not filed within the prescribed time. As previously reported, the Company is concluding a restatement of its annual report on Form 10-K for the year ended Dec. 31, 2011, and its quarterly reports for each of the quarters ended March 31, 2012, June 30, 2012, and Sept. 31, 2012. "The preparation of this very large consolidated filing requires a significant amount of additional hours by the Company's staff and consultants to obtain and to compile the historical business and financial data necessary to complete the full restatement," the Company said in a regulatory filing with the U.S. Securities and Exchange Commission. In July 2013, the Company's independent registered public accountants, Wilson Morgan LLP communicated to the Company their desire to no longer provide audit services to public companies and also communicated a pending merger with another firm. After their resignation the Company appointed Marcum LLP as its new independent registered public accountants for and with respect to the year ended Dec. 31, 2012. This change of independent registered public accountants to Marcum LLP has also contributed to the delayed filing of the Company's annual report on Form 10-K. About Victory Energy Austin, Texas-based Victory Energy Corporation is engaged in the exploration, acquisition, development and exploitation of domestic oil and gas properties. Current operations are primarily located onshore in Texas, New Mexico and Oklahoma. In the auditors' report accompanying the financial statements for year ended Dec. 31, 2011, WilsonMorgan LLP, in Irvine, California, expressed substantial doubt about Victory Energy's ability to continue as a going concern. The independent auditors noted that the Company has experienced recurring losses since inception and has an accumulated deficit. The Company reported a net loss of $3.95 million on $305,180 of revenues for 2011, compared with a net loss of $432,713 on $385,889 of revenues for 2010. The Company's balance sheet at Sept. 30, 2012, showed $1.69 million in total assets, $259,886 in total liabilities and $1.43 million in total stockholders' equity. VISCOUNT SYSTEMS: Incurs C$707,000 Net Loss in Second Quarter ------------------------------------------------------------- Viscount Systems, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss and comprehensive loss of C$707,338 on C$1.04 million of sales for the three months ended June 30, 2013, as compared with a net loss and comprehensive loss of C$1.37 million on C$901,088 of sales for the same period a year ago. For the six months ended June 30, 2013, the Company reported a net loss and comprehensive loss of C$2.55 million on C$1.86 million of sales, as compared with a net loss and comprehensive loss of C$1.54 million on C$1.76 million of sales for the same period during the prior year. The Company's balance sheet at June 30, 2013, showed C$1.67 million in total assets, C$6.21 million in total liabilities and a C$4.54 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/OSv6ur About Viscount Systems Burnaby, Canada-based Viscount Systems, Inc., is a manufacturer, developer and service provider of access control security products. The Company reported a net loss of C$2.9 million in 2011, compared with a net loss of C$1.3 million in 2010. The Company's bank credit facility was suspended on December 30, 2011 due to the bank's assessment of the Company's financial position. Management has determined that the Company will need to raise a minimum of C$500,000 by way of new debt or equity financing to continue normal operations for the next twelve months. Management has been actively seeking new investors and developing customer relationships, however a financing arrangement has not yet completed. Short-term loan financing is anticipated from related parties, however there is no certainty that loans will be available when required. These factors raise substantial doubt about the ability of the Company to continue operations as a going concern. Following the 2011 results, Dale Matheson Carr-Hilton Labonte LLP, in Vancouver, Canada, expressed substantial doubt about Viscount Systems' ability to continue as a going concern. The independent auditors noted that the Company has an accumulated deficit of C$5,769,027 and has reported a loss of C$2,883,304 for the year ended Dec. 31, 2011. VISION INDUSTRIES: Delays Form 10-Q for Second Quarter ------------------------------------------------------ Vision Industries Corp. was unable to file its quarterly report on Form 10-Q for the period ending June 30, 2013, because of unanticipated delays in the completion of its financial statements and related portions of the Form 10-Q, which delays could not be eliminated by the Company without unreasonable effort and expense. In accordance with Rule 12b-25 under the Securities Exchange Act of 1934, the Company anticipates filing its Form 10-Q no later than five calendar days following the prescribed due date. About Vision Industries Long Beach, Cal.-based Vision Industries Corp. focuses its efforts in building Class 8 fuel cell electric vehicles (FCEV) used in drayage transportation. The Company's balance sheet at March 31, 2013, showed $1.4 million in total assets, $2.4 million in total liabilities, and a stockholders' deficit of $1 million. Vision Industries reported a net loss of $5.28 million on $26,545 of total revenue for the year ended Dec. 31, 2012, as compared with a net loss of $6.44 million on $764,157 of total revenue for the year ended Dec. 31, 2011. DKM Certified Public Accountants, 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's cash and available credit are not sufficient to support its operations for the next year. Accordingly, management needs to seek additional financing that raises substantial doubt about its ability to continue as a going concern. VISUALANT INC: Incurs $2.4 Million Net Loss in June 30 Quarter -------------------------------------------------------------- Visualant, Incorporated, filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q for the period ended June 30, 2013, disclosing a net loss of $2.41 million on $2.06 million of revenue, as compared with a net loss of $737,615 on $1.81 million of revenue for the same period last year. For the nine months ended June 30, 2013, the Company reported a net loss of $5.46 million on $6.33 million of revenue, as compared with a net loss of $1.92 million on $5.52 million of revenue for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $5.59 million in total assets, $7.32 million in total liabilities, $46,609 in noncontrolling interest and a $1.78 million total stockholders' deficit. "The Company anticipates that it will record losses from operations for the foreseeable future. As of June 30, 2013, our accumulated deficit was $19,378,609. The Company has limited capital resources, and operations to date have been funded with the proceeds from private equity and debt financings and loans from Ronald P. Erickson, our Chief Executive Officer. These conditions raise substantial doubt about our ability to continue as a going concern," the Company said in the quarterly report. PMB Helin Donovan, LLP, in Nov. 10, 2012, 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 sustained a net loss from operations and has an accumulated deficit since inception which raise substantial doubt about the Company's ability to continue as a going concern. A copy of the Form 10-Q is available for free at: http://is.gd/SoZ4j4 About Visualant Inc. Seattle, Wash.-based Visualant, Inc., was incorporated under the laws of the State of Nevada on Oct. 8, 1998. The Company develops low-cost, high speed, light-based security and quality control solutions for use in homeland security, anti- counterfeiting, forgery/fraud prevention, brand protection and process control applications. Visualant incurred a net loss of $2.72 million for the year ended Sept. 30, 2012, compared with a net loss of $2.39 million for the same period during the prior year. VISUALANT INC: Authorized Common Shares Hiked to 500 Million ------------------------------------------------------------ The stockholders of Visualant, Inc., approved an amendment to the Company's Articles of Incorporation increasing the number of authorized common shares from 200 million to 500 million shares. On Aug. 12, 2013, the Company filed and received approval from the State of Nevada for a Certificate of Amendment to the Articles of Incorporation for Visualant, Inc., a Nevada Profit Corporation, related to the increase in the number of authorized common shares from 200 million to 500 million shares. Delays Q2 Form 10-Q The Company notified the U.S. Securities and Exchange Commission that it will be delayed in the filing of its quarterly report on Form 10-Q for the period ended June 30, 2013. "A delay in receiving financial information, questions regarding the accounting treatment of certain financial items, and the inability of the Registrant to incorporate that information into the Form 10-Q without unreasonable effort and expense on the part of Registrant has caused the inability to file timely," the Company said. About Visualant Inc. Seattle, Wash.-based Visualant, Inc., was incorporated under the laws of the State of Nevada on Oct. 8, 1998. The Company develops low-cost, high speed, light-based security and quality control solutions for use in homeland security, anti- counterfeiting, forgery/fraud prevention, brand protection and process control applications. Visualant incurred a net loss of $2.72 million for the year ended Sept. 30, 2012, compared with a net loss of $2.39 million for the same period during the prior year. The Company's balance sheet at March 31, 2013, showed $4.14 million in total assets, $5.53 million in total liabilities, a $1.42 million total stockholders' deficit and $40,133 in noncontrolling interest. PMB Helin Donovan, LLP, in Nov. 10, 2012, 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 sustained a net loss from operations and has an accumulated deficit since inception which raise substantial doubt about the Company's ability to continue as a going concern. WATER'S EDGE: Case Summary & 18 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Water's Edge Properties, LLC 215 Ridgeway Avenue Gadsden, AL 35901 Bankruptcy Case No.: 13-41487 Chapter 11 Petition Date: August 22, 2013 Court: U.S. Bankruptcy Court Northern District of Alabama (Anniston) Judge: James J. Robinson Debtor's Counsel: Robert D. McWhorter, Jr., Esq. INZER, HANEY, MCWHORTER & HANEY, LLC Post Office Drawer 287 Gadsden, AL 35902 Tel: (256) 546-1656 E-mail: rdmcwhorter@bellsouth.net Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its 18 largest unsecured creditors is available for free at http://bankrupt.com/misc/alnb13-41487.pdf The petition was signed by Fred F. Griffith, managing member. WESTERN EXPRESS: Default Risk Prompts Moody's to Cut CFR to Caa3 ---------------------------------------------------------------- Moody's Investors Service downgraded Western Express, Inc.'s Corporate Family Rating to Caa3 from Caa2 and Probability of Default Ratings to Caa3-PD from Caa2-PD. Concurrently, the rating on Western Express' senior secured notes was downgraded to Caa3 from Caa2. The ratings outlook remains negative. The following ratings were downgraded (with updated LGD assessments): Corporate family rating, to Caa3 from Caa2 Probability of default rating, to Caa3-PD from Caa2-PD $285 million senior secured notes due 2015, to Caa3 (LGD-4, 53%) from Caa2 (LGD-4, 54%) Ratings Rationale: The ratings downgrade is based on the company's higher probability of default, in Moody's view, of a debt restructuring to address its 2015 bond maturity. The downgrade was prompted by the company's weakened liquidity profile largely arising from negative free cash flow generation and expectation that credit metrics are unlikely to improve materially over the near term. Western Express' Caa3 corporate family rating reflects the company's weak credit metrics with debt/EBITDA for the twelve months ended June 30, 2013 of over 8.0 times and EBIT/interest coverage of under 0.5 times on a Moody's adjusted basis. Although a moderate improvement to operating income can emanate from a slightly higher rate environment and a more fuel-efficient fleet, the company's upcoming debt maturities and need to address those maturities underlie the Caa3 rating level. Significant freight volume growth is unlikely over the next year given the low rate of U.S. economic growth. Western Express has weak liquidity, with breakeven to negative cash from operations anticipated over the intermediate term and the potential for substantial utilization of the $40 million credit facility to fund interest payments. The negative outlook reflects Moody's view regarding the high likelihood of a distressed exchange in the near-term, or that adverse market conditions or unexpectedly weak operating performance could reduce refinancing or recovery prospects. An improved liquidity profile including sustained positive free cash flow generation would likely result in stabilization of the outlook. Upward ratings momentum would likely result from the company permanently addressing its capital structure. Moody's would consider a further downgrade if the company's recovery prospects diminish, it is unable to address upcoming debt maturities through a refinancing or credit metrics weaken such that debt/EBITDA exceeds 12 times and FFO plus Interest to Interest falls below 0.5 times. The principal methodology used in this rating was the Global Surface Transportation and Logistics Companies published in April 2013. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Western Express, Inc., headquartered in Nashville, TN, is a truckload carrier that operates both flat bed and dry van services. The company is majority owned by the Wise family. The company generates revenues of over $400 million annually. XTREME GREEN: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Xtreme Green Products, Inc. P.O. Box 36572 Las Vegas, NV 89133 Bankruptcy Case No.: 13-17266 Chapter 11 Petition Date: August 22, 2013 Court: U.S. Bankruptcy Court District of Nevada (Las Vegas) Judge: Mike K. Nakagawa Debtor's Counsel: Lenard E. Schwartzer, Es.q SCHWARTZER & MCPHERSON LAW FIRM 2850 S. Jones Boulevard, Suite 1 Las Vegas, NV 89146 Tel: (702) 228-7590 Fax: (702) 892-0122 E-mail: bkfilings@s-mlaw.com Scheduled Assets: $253,585 Scheduled Liabilities: $5,210,832 A copy of the Company's list of its 20 largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/nvb13-17266.pdf The petition was signed by Neil Roth, president. YARWAY CORPORATION: Plan Filing Deadline Extended to Dec. 18 ------------------------------------------------------------ Judge Brendan Linehan Shannon of the U.S. Bankruptcy Court for the District of Delaware extended Yarway Corporation's exclusive plan filing period through and including Dec. 18, 2013, and its exclusive solicitation period through and including Feb. 17, 2014. According to the Debtor's counsel, Larry J. Nyhan, Esq., at Sidley Austin LLP, in Chicago, Illinois, the additional time will be used by the Debtor to continue the process of negotiating a consensual Chapter 11 with the Official Committee of Asbestos Personal Injury Claimants and the Future Claimants' Representative. Kenneth P. Kansa, Esq., Dennis M. Twomey, Esq., and Allison Ross Stromberg, Esq., at Sidley Austin LLP, in Chicago, Illinois; and J. Kate Sticklers, Esq., Norman L. Pernick, Esq., and Therese A. Scheuer, Esq., at Cole, Schotz, Meisel, Forman & Leonard, P.A., in Wilmington, Delaware, also represent the Debtor. About Yarway Corporation Yarway Corporation sought Chapter 11 protection (Bankr. D. Del. Case No. 13-11025) on April 22, 2013, to deal with claims arising from asbestos containing products it allegedly sold as early as the 1920s. Yarway was founded in 1908 by Robert Yarnall and Bernard Waring as the Simplex Engineering Company and originally manufactured pipe clamps, steam traps, valves and controls. Based in Pennsylvania, Yarway was a privately-owned company until 1986 when KeyStone International, Inc. bought equity in the company. Yarway became a unit of Tyco International Ltd. when Tyco purchased KeyStone in 1997. Yarway's asbestos-related liabilities derive from Yarway's (i) purported use of asbestos-containing gaskets and packing, manufactured by others, in its production of steam valves and traps from the 1920s to 1970s, and (ii) alleged manufacture of expansion joint packing that was allegedly made up of a compound of Teflon and asbestos from the 1940s to the 1970s. Over the past five years, about 10,021 new asbestos claims have been asserted against Yarway, including 1,014 in Yarway's 2013 fiscal year ending March 31, 2013. The Debtor estimated assets and debts in excess of $100 million as of the Chapter 11 filing. Attorneys at Cole, Schotz, Meisel, Forman & Leonard, P.A. and Sidley Austin LLP serve as the Debtor's counsel in the Chapter 11 case. Logan and Co. is the claims and notice agent. On May 6, 2013, the U.S. Trustee for Region 3, appointed an official committee of asbestos personal injury claimants. The Committee tapped Elihu Inselbuch, Esq. at Caplin & Drysdale, Chartered, as lead bankruptcy counsel. YESHIVA CHOFETZ: Section 341(a) Meeting Scheduled for Sept. 18 -------------------------------------------------------------- A meeting of creditors in the bankruptcy case of Yeshiva Chofetz Chaim, Inc., will be held on Sept. 18, 2013, at 1:00 p.m. at Room 243A, White Plains. 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. Yeshiva Chofetz Chaim, Inc., filed a Chapter 11 petition (Bankr. S.D.N.Y. Case No. 13-23380) in White Plains, New York, on August 19. Rabbi Mayer Zaks signed the petition as president. The Debtor disclosed $17 million in assets and $3.81 million in liabilities in its schedules. Judge Robert D. Drain presides over the case. The Debtor is represented by Robert S. Lewis, Esq., -- robert.lewlaw1@gmail.com -- at ROBERT S. LEWIS, P.C., in Nyack, NY. * Courts Split on Wage Garnishment as a Preference -------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that a district judge in Louisiana took the minority view and held that garnishment of wages within 90 days of bankruptcy is a preference. A creditor took all necessary steps to garnish wages 90 days before bankruptcy. The bankruptcy judge ruled that wages garnished within 90 days of bankruptcy amounted to a voidable preference. On appeal, U.S. District Judge James J. Brady in Baton Rouge agreed. When all required steps are taken under Louisiana law, garnishment gives the creditor a "privilege on the property seized" that is a "preference over ordinary creditors." Nonetheless, Judge Brady said there is no perfection for bankruptcy purposes because a transfer is not made until the debtor has acquired rights in the property transferred, citing Section 547(e)(2) and (3) of the Bankruptcy Code. In the case of wages, there is no transfer until the wages have been earned. Consequently, wages earned within 90 days of bankruptcy are preferences. In his Aug. 12 opinion, Judge Brady sided with the U.S. Court of Appeals in Cincinnati. He notes that the federal circuit courts of appeal in New York, Atlanta, and Chicago hold otherwise. He said all three of those decisions are incorrect because they don't analyze the effect of Section 547(e)(3). The case is Schott v. First Pay Credit Inc., 13-257, U.S. District Court, Middle District Louisiana (Baton Rouge). * Two Bank Failures on Aug. 23 Bring 2013 Total to 20 ----------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that two banks were taken over by regulators on Aug. 23, bringing the year's total bank failures to 20. The 15-branch Community South Bank from Parsons, Tennessee, failed, and its branches were transferred to CB&S Bank of Russellville, Alabama. Community South had $377.7 million in deposits. The failure is estimated to cost the Federal Deposit Insurance Corp. $72.5 million. There have been two Tennessee bank failures this year so far. The six branches of Sunrise Bank in Phoenix were transferred to First Fidelity Bank NA of Oklahoma City. Sunrise had $196.9 million in deposits. The cost to the FDIC is $17 million. Three Arizona banks failed so far this year. In 2012, there were 51 bank failures, compared with 92 in 2011 and 157 in 2010. Bank failures in 2010 were the most since 1992, when 179 institutions were taken over by regulators. * Bankers Brace for Fed Wind-Down --------------------------------- Victoria McGrane, writing for The Wall Street Journal, reported that central bankers around the world are bracing themselves for more financial turbulence as the Federal Reserve prepares to wind down its easy-money policies. According to the report, global markets have reeled since May, when the Fed began signaling it could soon start scaling back its $85 billion-per-month bond-buying program. U.S. mortgage rates have been rising, and currencies and stocks in many developing economies have been falling. This volatility is "a salient reminder" that the effects of the Fed's pullback "may not be smooth," Charles Bean, deputy governor for monetary policy at the U.K. central bank, said in a speech at the Kansas City Fed's research conference. The meeting's official title, "Global Dimensions of Unconventional Monetary Policy," became all too real for at least one expected participant, the report said. Brazil's top central banker, Alexandre Tombini, canceled his plans to attend the conference at the last minute as the country's currency, the real, tumbled in value. The Brazilian central bank on Aug. 23 announced a $60- billion program aimed at halting the real's slide. In his stead, the central bank's deputy governor Luiz Awazu Pereira da Silva reassured listeners here Saturday that Brazil could manage the situation, the report related. "We prepared ourselves" for the effects of the easy-money policies employed by the Fed and other advanced economies to spur stronger growth, he said. "I think we are now also capable of mitigating the risks for the unwinding of these measures." Investors had plowed money into emerging markets in recent years while the U.S. recovery was sluggish and U.S. interest rates were at historic lows; now they are pulling money out at the prospect of rising U.S. rates and a strengthening U.S. economy, the report said. * Trump Institute Accused of Fraud by N.Y. Attorney General ----------------------------------------------------------- Christie Smythe, writing for Bloomberg News, reported that Donald Trump was sued by New York Attorney General Eric Schneiderman over claims the billionaire operated a fraudulent online educational institute that swindled students out of $40 million. Trump University, now known as the Trump Entrepreneur Initiative, operated as an unlicensed educational institution and misled students with promises that they would gain real estate investing expertise, according a copy of the petition provided by Schneiderman's office, the report related. The Aug. 25 filing wasn't immediately available from New York Supreme Court in Manhattan. Students paid as much as $35,000 for the institute's programs, purportedly taught by experts "handpicked" by Trump, according to the petition, the report related. Trump didn't select the instructors, many of whom didn't have real-estate backgrounds or had recently sought bankruptcy because of their real estate investing failures, Schneiderman's office alleged. After being told that they would recoup the cost of the programs within a few months, many students were unable to conclude even one real estate deal, according to the petition, the report added. "Mr. Trump used his celebrity status and personally appeared in commercials making false promises to convince people to spend tens of thousands of dollars they couldn't afford for lessons they never got," Schneiderman said in a statement. The case is Schneiderman v. The Trump Entrepreneur Initiative LLC, 400965-2012, Supreme Court of the State of New York, County of New York (Manhattan). * FDIC Waging Legal Battle Against Hundreds of Former Bank Leaders ------------------------------------------------------------------ Danielle Douglas, writing for The Washington Post, reported that as the clock runs out on a three-year statute of limitations, the Federal Deposit Insurance Corp. has filed a flurry of lawsuits to recoup losses tied to the largest wave of bank failures during the financial crisis. According to the report, the agency is waging legal battles against hundreds of directors and officers that it claims had a hand in their bank's demise, failures that cost the deposit insurance fund billions of dollars. These cases, however, may take years to play out in the courts, as the judicial process has been slow-going. The FDIC has filed 76 lawsuits against 574 former bank executives since 2008, the report related. Thirty-two of those cases were filed in the first eight months of 2013, nearly triple the number filed during the first eight months of last year, according to the agency. The surge in filings correlates with the peak of bank failures rooted in the crisis, which reached 157 in 2010. Cleaning up the financial wreckage of 483 shuttered banks, many small community banks, has depleted the insurance fund by $89 billion over the past five years, according to the FDIC, the report said. In that time, the agency has recovered $727 million from individuals associated with the failed banks. Officials at the FDIC anticipate the number of new lawsuits will crest after this year, but there is no clear end in sight for putting the cases to rest, the report added. Only one of the agency's lawsuits has reached a jury, while 10 have been settled out of court. * OTC Derivatives Rules' Benefits Outweigh Costs, Basel Group Says ------------------------------------------------------------------ Jim Brunsden, writing for Bloomberg News, reported that tougher rules for trading in over-the-counter derivatives will deliver economic benefits that outweigh the costs they impose on banks, a study found. According to the report, a group of supervisors and central bankers set up by the Bank for International Settlements estimated that when regulators have stricter standards in place, they will boost global economic output by 0.12 percent per year and the potential for financial crises will be reduced. Regulators and banks should try to have the largest number of derivatives trades as possible pass though clearinghouses, the group said in a statement dated Aug. 26. The market for OTC derivatives, which are traded away from exchanges and other regulated venues, should be based around a "modest number" of clearinghouses, the Basel, Switzerland-based said. Nations are trying to bolster and align their rules for the $633 trillion market for swaps and other OTC derivatives, which became a target for reinforced oversight after the 2008 collapse of Lehman Brothers Holdings Inc. and the rescue of American International Group Inc., two of the largest traders in credit- default swaps, the report said. Global regulatory plans include boosting the use of clearinghouses, pushing activity onto regulated markets and requiring banks to put up more collateral against their trades. "While these reforms have clear benefits, they do entail costs," the group said in the report. "Requiring OTC derivatives users to hold more high-quality, low-yielding assets as collateral lowers their income. Similarly, holding more capital means switching from lower-cost debt to higher-cost equity financing. As a consequence, institutions may pass on higher costs to the broader economy in the form of increased prices." * Moody's Notes Lukewarm Performance of Not-for-Profit Hospitals ---------------------------------------------------------------- Median financial data for the US not-for-profit hospitals show weakening financial performance in fiscal year 2012 after three years of stability, says Moody's Investors Service. Balance sheets, however, remained stable in FY 2012. "The FY 2012 medians highlight the challenges of operating with lower volumes and revenue growth, higher exposure to government payers and increased expenses," says Moody's Assistant Vice President -- Analyst Deepa Patel in "US Not-for-Profit Hospital 2012 Medians Show Balance Sheet Stability Despite Weaker Performance." In fiscal 2012, expense growth surpassed revenue growth for the first time since fiscal 2008, says Moody's. Median total operating revenue growth rate declined to 5.2% in fiscal 2012 from an improved 5.4% in fiscal 2011. At the same time, the median net patient revenue growth rate slowed to 4.7% from 5.3%. "Hospitals are also operating with lower volumes as many markets still report a slow economic recovery and consumers defer care or seek low cost healthcare alternatives," says Moody's Patel. Meanwhile, median expense growth rate increased to 5.5% in fiscal 2012 from 5.0% in fiscal 2011, says Moody's. "Many hospitals incurred higher expenses associated with information technology, physician alignment, supplies and pharmaceuticals and pension. Some also had higher consulting, legal and other fees associated with mergers and acquisitions, debt restructurings and performance improvement initiatives," says Moody's Patel. The reappearance of expense growth exceeding revenue growth is unsustainable, says Moody's. Looking ahead, Moody's expects operating performance will remain weak in FY 2013, a reason for Moody's negative outlook for the sector. The negative credit pressures of lower reimbursement and volumes will continue to be prevalent across all rating categories. * Moody's Notes Negative Effect of Insurers' Reliance on Captives ----------------------------------------------------------------- The growing reliance by US life insurers on captives to manage regulatory reserving and capital requirements is placing incremental negative pressure on the industry, says Moody's Investors Service in its latest special comment "The Captive Triangle: Where Life Insurers' Reserve and Capital Requirements Disappear." The report covers: the framework of captive risk transfer and why insurers enter into such deals; the credit positives and negatives associated with use of captives; and the industry's and individual companies' use of captives based on regulatory company disclosures. Captives enable life insurers to manage regulatory strains associated with life and health products in a tax efficient manner, address regulatory volatility of reserve and capital requirements and allow life insurers to operate in jurisdictions with favorable regulatory standards both within the US and abroad, says Moody's. As of the end of 2012, the life industry reported approximately $169 billion of general account reserve credit for business ceded to unauthorized captive reinsurers. An unauthorized reinsurer is neither licensed nor accredited in the state of domicile of the ceding company, requiring the insurer to secure some form of collateral in order to receive reserve credit. In addition to the reserve credit for unauthorized captives, Moody's estimates that the industry also received approximately $60 billion of general account reserve credit for transactions with authorized captives designed to provide some form of reserve relief. While certain reinsurance transactions do not provide reserve relief, they can provide some capital benefits to the ceding company. In total, including these capital relief related transactions, the industry received approximately $325 billion, or 12% of total reserves, of "relief" in aggregate from unauthorized captive reinsurers. This equates to approximately 85% of industry regulatory capital and surplus and only captures one segment of the industry's captive transactions (those with unauthorized affiliated captives), added Moody's. "Although the aggregate reserve relief the industry receives sounds significant, it is important to examine each company and transaction individually," said Moody's Senior Vice President Scott Robinson. "In addition to differing usage of captives by companies, some transactions may be credit neutral while others may introduce capital shortfalls and/or potential liquidity strains." "In aggregate, a greater reliance on captives by the industry creates overall negative credit pressure, and these practices undermine the conservatism US regulators have embedded in their reserving and capital regimes," added Robinson. Moody's notes that because many companies' captives are capitalized at lower levels compared to flagship companies, the use of captives tends to weaken overall capital adequacy. The use of captives can also lead to complex corporate structures and reduced financial transparency, said the rating agency. * Moody's Says Higher Rates Fuel Q2 Earnings for P&C Insurers ------------------------------------------------------------- Moody's-rated US P&C insurance companies delivered strong earnings growth in Q2 2013, with net income increasing 58% over the prior- year quarter, said Moody's Investors Service in its new special comment "US P&C Insurers Generated Strong Earnings in Q2 2013; The Pace of Rate Improvement Slows Slightly in Certain Lines." The improvement was driven primarily by lower catastrophe losses with scattered storm and hail activity in the Midwest and South as well as flooding in Canada and Europe. Underlying combined ratios continued to improve with earned rate increases outpacing relatively benign loss cost trends, says Moody's, and investment income increased modestly by 3%. Reserve releases were slightly down for Moody's-rated universe from the prior-year period, continuing their moderating trend although still providing meaningful earnings support, added Moody's. "The rate environment largely remained stable with most companies still reporting healthy rate increases across all business lines," said Ji Liu, a Moody's analyst and author of the report. "However, some insurers reported a slight slowdown in the pace of rate increases in selected lines, most notably commercial property and large account business." In addition, some standard carriers are still re-underwriting portfolios and actively shedding business which continues to make its way into the excess and surplus (E&S) lines market, added the rating agency. Most companies reported relatively stable retention ratios although some insurers note lower retention ratios as they take underwriting actions to improve profitability. Moody's expects commercial lines' rate momentum to remain positive and is not expecting significant changes over the near-to-medium term as interest rates remain low, catastrophe volatility remains elevated, accident year combined ratios for commercial casualty lines remain above targeted levels, and reserve releases diminish. However, the sector's prospects for meaningfully enhanced earnings generation is limited as plentiful capacity will continue to dampen the upwards trajectory of rates, added the rating agency. * Moody's Sees Better Macroeconomic Factors for US Life Insurers ---------------------------------------------------------------- US life insurers' second quarter 2013 net income was driven by higher interest rates, stronger equity markets, an improving economy and better underwriting, says Moody's Investors Service in its latest special comment "US Life Insurers' Q2 2013 Results: Bottom-line Earnings Flat; Macroeconomic Factors Improving." "We expect insurers will continue with expense-management initiatives, emphasizing fee-based and/or protection businesses, while deemphasizing rich product guarantees," said Rokhaya Cisse, a Moody's analyst and author of the report. "In addition, capital generation should continue to improve in spite of ongoing share buybacks and generally higher shareholder dividends." Reported net income for Moody's-rated publicly-traded US life insurers declined by 55% in Q2 2013 compared to the prior-year period. This was due to sizeable non-economic losses for industry leaders MetLife and Prudential, and when adjusted, the group's net income was essentially flat. Operating earnings, as reported by the life companies, increased by 16% on a year-over-year basis. Impairments tracked just over 1 basis point of invested assets for the industry during the quarter. Although impairments are likely to be higher for the rest of the year, they should remain well within annual historical levels, added the rating agency. Moody's expects life insurers' quarterly results to remain uneven for the remainder of 2013 given still low interest rates that continue to drag down earnings, potential DAC/goodwill write-downs or unlocking, and exposure to volatile equity markets, despite the likelihood that recovery and real growth will continue, but at a slow and variable pace. * Moody's Canadian Wireless Market Entry Difficult for Newcomers ---------------------------------------------------------------- Any newcomer would face high hurdles in Canada's wireless telecommunications market, Moody's Investors Service says in a new report, "Canadian Wireless Incumbents in Strong Position if Outsiders Come Calling." While Verizon Communications has confirmed recent news reports that it is evaluating potential investments north of the border, any company looking to enter the Canadian space will face significant barriers to entry. "Whatever the outcome of Verizon's interest, we believe any foreign competitor would have a difficult time gaining traction in the Canadian wireless market," says Senior Vice President, Bill Wolfe. "The three major incumbents -- Bell Canada, Rogers Communications and TELUS Corp. -- have built out some of the most sophisticated networks in the world, and would prove formidable competitors." At about 80%, Canada's relatively low penetration rate might suggest there is room for growth, Wolfe says. But the largest population centers are likely already fully penetrated, while the un-served part of the market is likely rural and would require significant capital investment to enter. In addition, seven of the 10 existing Canadian wireless operators have fixed-line infrastructure that allows them to offer the Internet, video and voice components of "quad play" service while keeping their costs down and enhancing customer loyalty. Five of the 10 also have network-sharing agreements that further reduce their costs. A price war is unlikely, Moody's says. A newcomer's costs would not be low enough to support such an effort. Nor would acquisitions be an instant win, because the three Canadian wireless new entrants -- Wind Mobile, Mobilicity and Public Mobile -- serve less than 10% of the market and have limited network infrastructure. "A battle for market share likely would be based on user experience, which would require the development of a top-quality network," Wolfe says. "And since this would be both a costly and time-consuming undertaking, we estimate it would take four to five years to develop a profitable company, giving existing players plenty of time to respond." * California Personal Bankruptcy Filings Down 26% in First Half --------------------------------------------------------------- A new California Credit Union League report shows lending at the state's credit unions increased by 1.3 percent in the second quarter -- making it the fastest second-quarter loan balance increase since the beginning of the recession in 2007. Automobile financing led the way with a 7.8 percent first-half jump in new vehicle loans, and a 6.3 percent increase in used vehicle loans. Unsecured personal loans also grew relatively quickly -- jumping by 1.8 percent in the first half. "It's clear the reports of California's heating up weren't a flash in the pan," said League Chief Economist Dwight Johnston. "This improved economic outlook is building consumer confidence with near-record increases in new loan applications for big-ticket items ranging from homes to cars." Helping drive demand for new vehicles, many Californians have returned to work in 2013. The state's unemployment rate dipped to 8.5 percent at the end of the year, which while still elevated, represents a decline of nearly a percentage point in the quarter and of 1.3 percentage points since the start of the year. Also, California home prices increased by 5 percent in the first quarter and by 17 percent in the year ending in March -- the most recent data available for the Federal Housing Finance Agency purchase- only index. Meanwhile, statewide personal bankruptcy filings declined by 26 percent in the first half compared to year-ago levels according to the Administrative Office of US District Courts. And California credit union borrower-bankruptcy filings declined even faster -- by nearly 31 percent -- in the same time period. Despite the increased spending, the report found Californians continued to save. Credit union savings balances grew 3.0 percent in the first half and by 3.2 percent in the year ending June 2013. With historically low market interest rates consumers continue to focus on building short-term liquid accounts: -- The state's credit unions report regular savings account balances grew by 6.9 percent in the first half -- Checking account balances grew by 5.4 percent -- Money market balances grew by 1.4 percent The League's report is compiled from credit unions representing 53 percent of all federally-insured credit unions that collectively serve 96 percent of the members and manage 98 percent of the assets reported by such institutions located throughout the state. * Mortgage Delinquency Rate Down 31% in July, LPS Report Shows -------------------------------------------------------------- Lender Processing Services, Inc. reported the following "first look" at July 2013 month-end mortgage performance statistics derived from its loan-level database representing approximately 70 percent of the overall market. Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 6.41% Month-over-month change in delinquency rate: -3.96% Year-over-year change in delinquency rate: -8.76% Total U.S. foreclosure pre-sale inventory rate: 2.82% Month-over-month change in foreclosure presale inventory rate: -3.46% Year-over-year change in foreclosure presale inventory rate: -30.76% Number of properties that are 30 or more days past due, but not in foreclosure: (A) 3,193,000 Number of properties that are 90 or more days delinquent, but not in foreclosure: 1,347,000 Number of properties in foreclosure pre-sale inventory: (B) 1,406,000 Number of properties that are 30 or more days delinquent or in foreclosure: (A+B) 4,599,000 States with highest percentage of non-current* loans: FL, MS, NJ, NY, ME States with the lowest percentage of non-current* loans: WY, MT, AK, SD, ND *Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state. Notes:(1) Totals are extrapolated based on LPS Applied Analytics' loan-level database of mortgage assets.(2) All whole numbers are rounded to the nearest thousand. About Lender Processing Services Headquartered in Jacksonville, Fla., Lender Processing Services -- http://www.lpsvcs.com-- is a provider of integrated technology, services, data and analytics to the mortgage and real estate industries. LPS is a Fortune 1000 company and employs approximately 7,500 professionals. * Peter Schaeffer Joins GlassRatner's New York Office as Principal ------------------------------------------------------------------ GlassRatner Advisory & Capital Group LLC on Aug. 26 announced the addition of Peter N. Schaeffer as a Principal in the firm working out of the New York City office. Mr. Schaeffer will focus on mergers and acquisitions, capital sourcing, strategic advisory and restructuring services with a specific focus on the retail and consumer goods industries. "The addition of Peter Schaeffer to our New York team is another example of GlassRatner's continuing investment in that market and desire to add talented professionals around the country," said Ron Glass, Principal and founder of the firm. "With the addition of Peter, both our New York and national practice gain significant investment banking experience and enable GlassRatner to be a leader in the retail and consumer sectors." Before joining GlassRatner, Mr. Schaeffer was a Partner at Carl Marks Advisory Group, a founding managing director and global leader of the retail and consumer products investment banking group at Giuliani Capital Advisors and its predecessor firm, Ernst & Young Corporate Finance. Prior to that he was a senior equity analyst at Donaldson, Lufkin & Jenrette, where he covered the branded retail and consumer sectors. He was previously a director and senior retail analyst at Warburg Dillon Read. Mr. Schaeffer also has more than 20 years experience in the retail industry including senior level positions at both Bloomingdale's and Macy's. Ian Ratner, Principal, adds, "Peter's creativity and energy will be an asset to the firm and our clients. Our New York office has become a center of influence at GlassRatner and his addition should continue that momentum. In addition to Peter's experience in the investment banking business, he holds series 7, 63 as well as a series 24 principal's license. This background will be critical as we continue to become more active in capital markets transactions." About GlassRatner GlassRatner Advisory & Capital Group LLC -- http://www.GlassRatner.com-- is a national specialty financial advisory services firm providing solutions to complex business problems and board level agenda items. The firm applies a unique mix of skill sets and experience to address matters of the utmost importance to an enterprise such as managing through a business crisis or bankruptcy, planning and executing a major acquisition or divestiture, pursuing a fraud investigation or corporate litigation, and other top level non-typical business challenges. * Large Companies With Insolvent Balance Sheets ----------------------------------------------- Total Share- Total Total Holders' Working Assets Equity Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------ -------- ------- ABSOLUTE SOFTWRE ABT CN 120.5 (14.1) (11.1) ADVANCED EMISSIO ADES US 87.0 (42.3) (18.0) ADVENT SOFTWARE ADVS US 824.6 (114.8) (202.7) AK STEEL HLDG AKS US 3,772.7 (181.0) 473.3 ALLIANCE HEALTHC AIQ US 528.2 (131.1) 64.8 AMC NETWORKS-A AMCX US 2,460.3 (680.1) 735.0 AMER AXLE & MFG AXL US 3,008.7 (101.6) 345.2 AMR CORP AAMRQ US 26,216.0 (8,216.0) (1,034.0) AMYLIN PHARMACEU AMLN US 1,998.7 (42.4) 263.0 ANGIE'S LIST INC ANGI US 111.8 (11.9) (9.4) ARRAY BIOPHARMA ARRY US 136.0 (21.9) 70.7 AUTOZONE INC AZO US 6,783.0 (1,532.3) (657.7) BERRY PLASTICS G BERY US 5,045.0 (251.0) 550.0 BIOCRYST PHARM BCRX US 39.9 (9.0) 21.6 BOSTON PIZZA R-U BPF-U CN 156.7 (108.0) (4.2) BRP INC/CA-SUB V DOO CN 1,768.0 (496.6) (21.8) BUILDERS FIRSTSO BLDR US 505.5 (8.5) 188.3 CABLEVISION SY-A CVC US 7,588.1 (5,565.5) (14.0) CAESARS ENTERTAI CZR US 26,844.8 (738.1) 833.8 CALLIDUS SOFTWAR CALD US 123.1 (2.2) 2.8 CAPMARK FINANCIA CPMK US 20,085.1 (933.1) - CC MEDIA-A CCMO US 15,296.5 (8,289.2) 1,259.4 CENTENNIAL COMM CYCL US 1,480.9 (925.9) (52.1) CHOICE HOTELS CHH US 562.7 (520.0) 75.1 CIENA CORP CIEN US 1,693.3 (97.9) 744.0 CINCINNATI BELL CBB US 2,145.4 (719.7) (43.2) DELTA AIR LI DAL US 45,772.0 (1,184.0) (5,880.0) DEX MEDIA INC DXM US 2,658.8 (17.7) (13.5) DIAMOND RESORTS DRII US 1,073.5 (81.3) 682.4 DIRECTV DTV US 20,921.0 (5,688.0) (81.0) DOMINO'S PIZZA DPZ US 468.8 (1,328.8) 73.7 DUN & BRADSTREET DNB US 1,902.0 (1,097.0) (194.9) DYAX CORP DYAX US 70.7 (37.0) 43.0 EVERYWARE GLOBAL EVRY US 340.7 (53.6) 134.8 FAIRPOINT COMMUN FRP US 1,606.4 (400.5) 19.6 FERRELLGAS-LP FGP US 1,440.6 (29.0) 9.9 FIFTH & PACIFIC FNP US 846.2 (213.7) (64.6) FINJAN HOLDINGS FNJND US 2.7 (2.5) (3.0) FOREST OIL CORP FST US 1,913.7 (67.4) (129.4) FREESCALE SEMICO FSL US 3,129.0 (4,583.0) 1,235.0 GENCORP INC GY US 1,411.1 (366.9) 27.9 GLG PARTNERS INC GLG US 400.0 (285.6) 156.9 GLG PARTNERS-UTS GLG/U US 400.0 (285.6) 156.9 GLOBAL BRASS & C BRSS US 576.5 (37.0) 286.9 GOLD RESERVE INC GRZ CN 78.3 (25.8) 56.9 GRAHAM PACKAGING GRM US 2,947.5 (520.8) 298.5 HALOGEN SOFTWARE HGN CN 22.8 (46.2) (9.4) HCA HOLDINGS INC HCA US 27,934.0 (7,485.0) 1,771.0 HD SUPPLY HOLDIN HDS US 6,459.0 (1,720.0) 1,199.0 HOVNANIAN ENT-A HOV US 1,618.9 (478.5) 929.3 HUGHES TELEMATIC HUTCU US 110.2 (101.6) (113.8) HUGHES TELEMATIC HUTC US 110.2 (101.6) (113.8) INCONTACT INC SAAS US - (86.5) - INCYTE CORP INCY US 334.2 (27.8) 210.4 INFOR US INC LWSN US 6,202.6 (476.4) (417.5) INSYS THERAPEUTI INSY US 22.2 (63.5) (70.0) IPCS INC IPCS US 559.2 (33.0) 72.1 ISTA PHARMACEUTI ISTA US 124.7 (64.8) 2.2 JUST ENERGY GROU JE US 1,505.7 (215.4) (97.4) JUST ENERGY GROU JE CN 1,505.7 (215.4) (97.4) L BRANDS INC LTD US 5,776.0 (994.0) 634.0 LIN MEDIA LLC LIN US 1,221.8 (63.5) (97.2) LIPOCINE INC LPCN US 0.0 (0.0) (0.0) LORILLARD INC LO US 3,335.0 (1,855.0) 1,587.0 MANNKIND CORP MNKD US 212.4 (152.4) (234.6) MARRIOTT INTL-A MAR US 6,377.0 (1,493.0) (1,063.0) MARRONE BIO INNO MBII US 17.8 (45.1) (21.6) MDC PARTNERS-A MDZ/A CN 1,389.4 (16.6) (204.5) MDC PARTNERS-A MDCA US 1,389.4 (16.6) (204.5) MEDIA GENERAL-A MEG US 739.6 (206.4) 30.6 MERITOR INC MTOR US 2,477.0 (1,059.0) 278.0 MERRIMACK PHARMA MACK US 107.3 (58.3) 28.2 MONEYGRAM INTERN MGI US 5,075.8 (148.2) 30.1 MORGANS HOTEL GR MHGC US 580.7 (163.7) 9.9 MPG OFFICE TRUST MPG US 1,280.0 (437.3) - NATIONAL CINEMED NCMI US 831.0 (308.8) 122.2 NAVIDEA BIOPHARM NAVB US 31.1 (1.8) 24.0 NAVISTAR INTL NAV US 8,723.0 (3,638.0) 1,562.0 NEKTAR THERAPEUT NKTR US 412.8 (40.5) 144.1 NYMOX PHARMACEUT NYMX US 1.8 (7.4) (1.9) ODYSSEY MARINE OMEX US 28.0 (7.1) (15.5) OMEROS CORP OMER US 23.1 (12.3) 10.4 OMTHERA PHARMACE OMTH US 18.3 (8.5) (12.0) PALM INC PALM US 1,007.2 (6.2) 141.7 PDL BIOPHARMA IN PDLI US 401.4 (1.3) 46.7 PHILIP MORRIS IN PM US 37,140.0 (3,929.0) 2,049.0 PHILIP MRS-BDR PHMO11B BZ 37,140.0 (3,929.0) 2,049.0 PLAYBOY ENTERP-A PLA/A US 165.8 (54.4) (16.9) PLAYBOY ENTERP-B PLA US 165.8 (54.4) (16.9) PLY GEM HOLDINGS PGEM US 1,102.0 (70.2) 194.4 PROTECTION ONE PONE US 562.9 (61.8) (7.6) QUALITY DISTRIBU QLTY US 474.4 (42.0) 99.0 QUINTILES TRANSN Q US 2,426.7 (1,322.3) 217.5 REGAL ENTERTAI-A RGC US 2,608.4 (697.9) (21.2) RENAISSANCE LEA RLRN US 57.0 (28.2) (31.4) RENTPATH INC PRM US 208.0 (91.7) 3.6 REVLON INC-A REV US 1,269.7 (632.4) 180.6 RITE AID CORP RAD US 6,945.4 (2,357.5) 1,822.5 RURAL/METRO CORP RURL US 303.7 (92.1) 72.4 SALLY BEAUTY HOL SBH US 1,892.1 (280.5) 523.4 SEQUENOM INC SQNM US 192.8 (6.4) 88.3 SILVER SPRING NE SSNI US 506.9 (86.7) 69.5 SUNESIS PHARMAC SNSS US 50.6 (5.8) 15.3 SUNGAME CORP SGMZ US 0.1 (1.3) (1.4) SUPERVALU INC SVU US 4,691.0 (1,084.0) 2.0 TAUBMAN CENTERS TCO US 3,369.8 (191.4) - THRESHOLD PHARMA THLD US 104.5 (25.2) 80.0 TOWN SPORTS INTE CLUB US 414.5 (43.7) (14.3) TROVAGENE INC TROV US 9.6 (2.5) 7.1 TROVAGENE INC-U TROVU US 9.6 (2.5) 7.1 ULTRA PETROLEUM UPL US 2,062.9 (441.1) (266.6) UNISYS CORP UIS US 2,275.8 (1,536.0) 412.2 VECTOR GROUP LTD VGR US 1,069.5 (129.5) 384.8 VENOCO INC VQ US 695.2 (258.7) (39.2) VERISIGN INC VRSN US 2,524.8 (273.9) 312.7 VIRGIN MOBILE-A VM US 307.4 (244.2) (138.3) VISKASE COS I VKSC US 334.7 (3.4) 113.5 WEIGHT WATCHERS WTW US 1,310.8 (1,561.1) (84.7) WEST CORP WSTC US 3,462.1 (819.5) 338.0 WESTMORELAND COA WLB US 933.6 (281.6) (11.1) XERIUM TECHNOLOG XRM US 600.8 (35.1) 123.8 XOMA CORP XOMA US 76.9 (16.9) 46.5 YRC WORLDWIDE IN YRCW US 2,172.5 (641.5) 105.5 ********* 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, Valerie Udtuhan, 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 ***