/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/130904.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, September 4, 2013, Vol. 17, No. 245 Headlines 1250 OCEANSIDE: Court Authorizes Tax Return Preparers Employment 1250 OCEANSIDE: Amends Schedules of Assets and Liabilities AGFEED INDUSTRIES: Stalking Horse Outbid at Hog Farms Auction AGFEED INDUSTRIES: Hires Latham & Watkins as Special Counsel AGFEED INDUSTRIES: May Hire Foley & Lardner as Special Counsel AGFEED INDUSTRIES: Committee Retains Lowenstein Sandler as Counsel AGFEED INDUSTRIES: Committee Taps Greenberg Traurig as Co-counsel AMERICAN AIRLINES: Airlines, DOJ Told to Confer on Mediator AMERICAN AIRLINES: Brazil Fines Airline Over Cartel Claims AMERICAN AIRLINES: Retiree Wants Sanctions vs. AMR Lawyers AMERICAN AIRLINES: To Pay $481,000 to ZS Associates ANACOR PHARMACEUTICALS: Plans to Sell $50MM Worth of Securities ANCHOR BANCORP: Wins Prepackaged Plan Approval ANV SECURITY: Incurs $403K Net Loss in Second Quarter ARI-RC 6 LLC: Has No Right to Property Rents, U.S. Bank Asserts ARI-RC 6: Hearing on 2 U.S. Bank Motions Postponed to Nov. 6 ARI-RC 6: Wants to Hire Levene Neal as Bankr. Counsel ARI-RC 6: Files Schedules of Assets and Liabilities ARMORWORKS ENTERPRISES: Can Make Intercompany Loan to AW Canada AS SEEN ON TV: CEO Provides Update on Company's Progress ASTOR & BLACK: Files for Chapter 7 Liquidation ATLS ACQUISITION: LMS Seeks Extension of Lease Decision Deadline BERNARD L. MADOFF: Picard Revises Suit Against Merkin BUILDERS FIRSTSOURCE: R. Robotti Held 4% Equity Stake at Aug. 20 CAPITOL BANCORP: Director David O'Leary Resigns CCO LAND: Updated Case Summary & Creditors' Lists CEL-SCI CORP: NYSE MKT Accepts Listing Compliance Plan CENTRAL ENERGY: Inks LOI to Sell Membership Interests CHINA TELETECH: Incurs $725,800 Net Loss in Second Quarter CIRTRAN CORP: Offering 211.8 Million Shares Under 2013 Plan COLDWATER PORTFOLIO: Plan Effective Date Occurred on August 21 COMMUNITY MEMORIAL: Committee Confirms Amended Liquidation Plan CONQUEST SANTA FE: Can Access Cash Collateral Until Oct. 31 COOPER-BOOTH WHOLESALE: Dec. 18 Hearing on Use of Cash Collateral CORBIN PARK: U.S. Trustee Wants Case Converted or Dismissed COSTA BONITA: Has Until Oct. 25 to File Amended Plan DAMES POINT: Creditor's Plan to Halt Marina Operations DANCE NEW AMSTERDAM: Seeks Help Keeping Doors Open DEL PUEBLO: Gets More Time to File Plan Thru Sept. 9 DETROIT, MI: Union Asks Judge to Allow Questioning of Governor DIOCESE OF GALLUP, NM: To File Chapter 11 Amid Clergy Abuse Claims DONNER METALS: Forfeits Interest in Bracemac-McLeod After Default DRYSHIPS INC: Amends Ocean Rig Senior Secured Facility Agreement EASTMAN KODAK: Completes Final Steps in Chapter 11 Restructuring EASTMAN KODAK: Seeks Court Approval to Reject EBP Contracts EASTMAN KODAK: Court Approves Cancellation of Outstanding Stock ELEPHANT TALK: Amends Report on Issuance of 1-Mil. Warrants ELBIT IMAGING: Annual Shareholders Meeting Set on Sept. 30 ELITE PHARMACEUTICALS: Inks Master Services Pact with Camargo ENNIS COMMERCIAL: Plan Administrator Hires Katten Muchin ESP RESOURCES: Amends Second Quarter Form 10-Q FAIRMONT GENERAL: Files for Chapter 11 in West Virginia FLETCHER INTERNATIONAL: Trustee Revises Goldin Compensation FOURTH QUARTER PROPERTIES: Seeks Plan Exclusivity Until Oct. 16 FREESEAS INC: Issues 1.3-Mil. Add'l Settlement Shares to Hanover FURNITURE BRANDS: To Voluntarily Delist Common Stock From NYSE GORDON PROPERTIES: Stites & Harbison Wants Ch.7 Case Conversion GORDON PROPERTIES: Sept. 20 Hearing on First Owners Settlement GRAND CENTREVILLE: Obtains Approval to Use Cash Collateral GROWTHWORKS CANADIAN: Roseway Waives Security Agreement Default HASSEN IMPORTS: Auction of Dormant Properties on Sept. 11 HIGH MAINTENANCE: Neligan Foley to Replace Cox and Smith HIGH MAINTENANCE: Hiring Wilkinson Barker on FCC Matters HIGH MAINTENANCE: Files Schedules of Assets and Liabilities HOTEL OUTSOURCE: Incurs $457,000 Net Loss in Second Quarter HOYT TRANSPORTATION: Gets Court Approval to Sell Buses IGPS COMPANY: Files Ch. 11 Liquidating Plan IGPS COMPANY: Seeks Extension of Lease Decision Deadline ISAACSON STEEL: Case Conversion Hearing Moved to Sept. 19 INSPIREMD INC: Completes First Phase of Manufacturing Upgrade INTERNATIONAL HOME: Court Dismisses Chapter 11 Case J AND Y INVESTMENT: Plan Confirmation Denied, Stay Relief OK'd JHK INVESTMENTS: Can Access Bay City Cash Collateral 'til Sept. 30 LANDAUER HEALTHCARE: Sec. 341 Creditors' Meeting Set for Sept. 23 LANDAUER HEALTHCARE: Trustee Appoints 5-Member Creditors Panel LAUSELL INC: Confirmation Hearing Rescheduled for Sept. 30 LEHMAN BROTHERS: Belik Seeks Stay Relief to Pursue Insurance LEHMAN BROTHERS: Eichorn Allowed to Pursue Oklahoma Suit LEHMAN BROTHERS: Trustee Wins Nod to Settle Lloyds Claim LIFE CARE: Florida Regulator Objects to Use of Cash Collateral LIFE CARE: Committee Wants to Limit Use of Cash Collateral LIFE CARE: Can Employ Continuum Development as Consultant LIFE CARE: Has Green Light to Hire Hamlyn as Marketing Consultant LIFE UNIFORM: Littler Mendelson Approved as Special ERISA Counsel LIFE UNIFORM: Creditors Have Until Oct. 4 to File Proofs of Claim LIFECARE HOLDINGS: Defends Gifts to Some Creditors LIGHTSQUARED INC: Harbinger Files Chapter 11 Reorganization Plan LIME ENERGY: Fails to Meet $2.5MM Min. Stockholders' Equity LONGVIEW POWER: Kvaerner Says Exposure to Bankruptcy Unclear MACROSOLVE INC: Posts $12,600 Net Income in Second Quarter MANAGEMENT SOLUTIONS: Judges Approves Receiver's Liquidation Plan MAXCOM TELECOM: Banco Invex, et al., Submit Purchase Proposal MMRGLOBAL INC: Amends Charter to Hike Authorized Shares to 1.2BB MONARCH COMMUNITY: Shareholders Elect Three Directors MONTREAL MAINE: Expedited Request Made for Committee MONTREAL MAINE: U.S. Court Asked to Handle Victims' Compensation MW GROUP: Hearing on Collateral Valuation Continued to Oct. 2 MW GROUP: Disclosure Statements Hearing Moved to October 16 NEXTIO INC: Shuts Doors After 10 Years, Set to File for Chapter 7 NNN 3500 MAPLE 26: 18-Story Dallas Tower Owner Files Again NNN CYPRESSWOOD: Wants Exclusive Periods Extended Until Oct. 27 NORTHERN BEEF: Committee Taps P. Dougherty as Local Counsel ORCHARD SUPPLY: Lowe's Finishes Purchase of 72 Stores OVERSEAS SHIPHOLDING: Delayed 2012 Form 10-K Shows $480.1MM Loss OXIGENE INC: Incurs $1.6-Mil. Net Loss in Second Quarter PATRIOT COAL: Wants Documents From Peabody More Quickly PETRON ENERGY: Incurs $1.3 Million Net Loss in Second Quarter POINT CENTER: Ch. 11 Trustee Taps Landau Gottfried as Counsel RG STEEL: Seeks 90-Day Extension to Access, Sell Mill Steel PLY GEM HOLDINGS: Amends Prospectus in Response to Comments REALOGY GROUP: Former McDonald's Executive Named to Board ROBERTS LAND: Files Amended Plan; Evidentiary Hearing on Dec. 5 ROTECH HEALTHCARE: Exclusive Period Extension Approved RURAL/METRO: Court Sets Claims Bar Dates RURAL/METRO: Wins Approval to Pay $6-Mil. to Critical Vendors RURAL/METRO: Wins Approval to Hire FTI as Special Accountant SEVEN COUNTIES: Has Until Oct. 2014 to File Reorganization Plan SMOKEY MOUNTAIN: Involuntary Chapter 11 Case Summary STONE ROSE: Sergi Investors Seek Appointment of Ch. 11 Trustee TECHDYNE LLC: Hearing on Deal with HIOX Set for Sept. 10 TRINITY COAL: Disclosure Statement Hearing on Sept. 19 TRINITY COAL: Can Pay Up to $750,000 to Retain Non-Insider Workers UNITEK GLOBAL: Gets Nasdaq Notification Over Late 10-Q Filing TRIUS THERAPEUTICS: N. Kjellson Had 7.5% Equity Stake at July 30 VERMILLION INC: Cancels Strategic Alliance Pact with Quest VISION INDUSTRIES: Amends Second Quarter Form 10-Q WEST COVINA MOTORS: Auction of Dormant Properties on Sept. 11 WIZARD WORLD: Holders Convert A Shares Into 9.5MM Common Shares WORLD IMPORTS: Meeting to Form Creditors' Panel on Sept. 20 WOUND MANAGEMENT: Malone Bailey Replaces PSH as Accountants WPCS INTERNATIONAL: Drew Ciccarelli Buys 121,015 Shares * Circuits No Longer Split on Chapter 13 Plan-Duration * Government's ERISA Suit Immune From Automatic Stay * SAC Capital Civil Suit Should Be Delayed, U.S. Asks Judge * Homebuyers Tapping Brakes as Rates Rise * U.S. Outlines Penalties for Swiss Banks in Tax Probe * Leveraged Loan Volume Drops to 2-Year Low in August * Cleveland Water's Steven M. Notinger Named "Lawyer of the Year" * John Bae Joins Mintz Levin's New York Bankruptcy Practice * NJ Yet to Recover From Effects of Big-Box Retail Bankruptcies * Upcoming Meetings, Conferences and Seminars ********* 1250 OCEANSIDE: Court Authorizes Tax Return Preparers Employment ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Hawaii authorized 1250 Oceanside Partners, Front Nine LLC, and Pacific Star Company, LLC, to employ McGladrey, LLP, and TFO Phoenix, Inc., as tax return preparers. McGladrey will prepare the tax return for 1250 Oceanside, while TFO Phoenix will prepare the tax returns for Front Nine and Pacific Star. The hourly rates for McGladrey's professionals range from $165 for staff to $580 for a partner. McGladrey estimates that the fees for preparing the returns will be $20,000. TFO proposes to charge $3,500 for the 2012 federal and state returns for the two Debtors. If additional services are needed, TFO's hourly rates are $220 for tax compliance services and $360 for consulting services. About 1250 Oceanside Partners 1250 Oceanside Partners, Front Nine LLC, and Pacific Star Company LLC, owners of the 1,800-acre Hokuli'a luxury real estate development near Kona on the island of Hawaii, sought Chapter 11 protection (Bankr. D. Hawaii Lead Case No. 13-00353) on March 6, 2013, in Honolulu. The Debtors were formed by developer Lyle Anderson and were part of his development "empire", which included developments in Hawaii, Arizona, New Mexico and Scotland. The secured lender, Bank of Scotland, declared a default and obtained control of the Debtors in January 2008. Development of the property, which has 3.5 miles of waterfront on the Kona coast, stopped after the developers were declared in default under the loan. Oceanside and Front Nine own most of the land within the Hokuli'a project, which is the principal development. Pacific Star owns the land referred to as "Keopuka", near Hokuli'a. The Hokuli'a was to have 730 residential units, an 18-hole golf course, club and other amenities. The Debtors say their assets are worth $68.1 million while they are jointly liable to $625 million of debt to Sun Kona Finance LLC, which acquired the Hawaii loan from Bank of Scotland. Simon Klevansky, Esq., Alika L. Piper, Esq., and Nicole D. Stucki, Esq., at Klevansky Piper, LLP, represent the Debtor in its restructuring effort. They replace the law firm of Gelber, Gelber & Ingersoll as general counsel. A creditors committee has not been appointed. James A. Wagner, Esq., at Wagner Choi & Verbrugge, represents Sun Kona Finance I, LLC and Sun Kona Finance II, LLC, as counsel. 1250 OCEANSIDE: Amends Schedules of Assets and Liabilities ---------------------------------------------------------- 1250 Oceanside Partners filed with the U.S. Bankruptcy Court for the District of Hawaii amended schedules of assets and liabilities disclosing the following: Assets Liabilities ----------- ------------ A. Real Property $30,415,928 B. Personal Property 14,165,855 C. Property Claimed as Exempt N/A D. Creditors Holding Secured Claims $726,081,253 E. Creditors Holding Unsecured Priority Claims 0 F. Creditors Holding Unsecured Nonpriority Claims 22,482,324 ----------- ------------ Total $44,581,783 $748,563,577 Full-text copies of the Amended Schedules, dated Aug. 21, 2013, are available at http://bankrupt.com/misc/1250OCEANSIDEsal0821.pdf About 1250 Oceanside Partners 1250 Oceanside Partners, Front Nine LLC, and Pacific Star Company LLC, owners of the 1,800-acre Hokuli'a luxury real estate development near Kona on the island of Hawaii, sought Chapter 11 protection (Bankr. D. Hawaii Lead Case No. 13-00353) on March 6, 2013, in Honolulu. The Debtors were formed by developer Lyle Anderson and were part of his development "empire", which included developments in Hawaii, Arizona, New Mexico and Scotland. The secured lender, Bank of Scotland, declared a default and obtained control of the Debtors in January 2008. Development of the property, which has 3.5 miles of waterfront on the Kona coast, stopped after the developers were declared in default under the loan. Oceanside and Front Nine own most of the land within the Hokuli'a project, which is the principal development. Pacific Star owns the land referred to as "Keopuka", near Hokuli'a. The Hokuli'a was to have 730 residential units, an 18-hole golf course, club and other amenities. The Debtors say their assets are worth $68.1 million while they are jointly liable to $625 million of debt to Sun Kona Finance LLC, which acquired the Hawaii loan from Bank of Scotland. Simon Klevansky, Esq., Alika L. Piper, Esq., and Nicole D. Stucki, Esq., at Klevansky Piper, LLP, represent the Debtor in its restructuring effort. They replace the law firm of Gelber, Gelber & Ingersoll as general counsel. A creditors committee has not been appointed. James A. Wagner, Esq., at Wagner Choi & Verbrugge, represents Sun Kona Finance I, LLC and Sun Kona Finance II, LLC, as counsel. AGFEED INDUSTRIES: Stalking Horse Outbid at Hog Farms Auction ------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that AgFeed Industries Inc. held an auction on Aug. 26 resulting in a sale to three purchasers under a contract valued at $79.2 million. The bankruptcy court in Delaware approved the sale on Aug. 29. According to the report, the cash component of the approved sale is $53.2 million. The opening bid of $79 million was made at auction by pork producer Maschhoffs LLC. The winners of the auction were High Plains Pork LLC, Cohoma Pork LLC, and Murphy- Brown LLC. The report notes that the sale doesn't include sow farms in Oklahoma, which are to be sold separately after a buyer is located. About Agfeed Industries AgFeed Industries, formerly known as M2 P2, LLC, is an international agribusiness with operations in the U.S. and China. AgFeed has two business lines: animal nutrition in premix, concentrates and complete feeds and hog production. In the U.S., AgFeed's hog production unit, M2P2, is a market leader in setting new standards for production efficiency and productivity. AgFeed believes the transfer of these processes, procedures and techniques will allow its new Western-style Chinese hog production units to set new standards for production in China. China is the world's largest pork market consuming 50 percent of global production and over 62 percent of total protein consumed in China is pork. Hog production in China currently enjoys income tax free status. AgFeed Industries, Inc., and its affiliates filed voluntary petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 13-11761) on July 15, 2013, with a deal to sell most of its subsidiaries to The Maschhoffs, LLC, for cash proceeds of $79 million, absent higher and better offers. The Debtors estimated assets of at least $100 million and debts of at least $50 million. Keith A. Maib signed the petition as chief restructuring officer. Hon. Brendan Linehan Shannon presides over the case. Donald J. Bowman, Jr., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, serve as the Debtors' counsel. BDA Advisors Inc. acts as the Debtors' financial advisor. The Debtors' claims and noticing agent is BMC Group, Inc. AGFEED INDUSTRIES: Hires Latham & Watkins as Special Counsel ------------------------------------------------------------ AgFeed Industries, Inc. et al., ask the U.S. Bankruptcy Court for permission to employ Latham & Watkins LLP as special counsel. The status of and services expected to be provided by Latham are: a. In connection with the Securities Class Action, prior to the Petition Date, L&W had filed motions to dismiss on behalf the Debtor and the U.S. individual defendants. A mediation session had also been scheduled with the plaintiffs and AgFeed's insurance carrier to attempt to resolve the dispute. However, based upon certain deposition testimony, the plaintiffs have sought leave to amend their complaint to add new allegations and three defendants. As a result, the mediation was cancelled. If and when the court presiding over the Securities Class Action accepts the amended complaint, L&W will negotiate a schedule to move to dismiss the complaint on behalf of the US individual defendants and the new defendants. The briefing for the new motion to dismiss can be expected to last approximately five months. Due to the Debtor's bankruptcy, L&W's services on this matter on behalf of the individuals defendants will be paid for by Side-A of the AIG D&O insurance policy without the requirement of a retention funded by the Debtor. b. In connection with the SEC Investigation, since approximately January 2012, L&W has represented the Debtor and certain current or former officers, directors and employees in the SEC Investigation. Document production to the SEC is largely complete, L&W does not anticipate any additional investigative testimony and the Debtor has, for now, satisfied most of the requests for information of the SEC. Accordingly, L&W anticipates that its representation of the Debtor in the SEC Investigation going forward will relate primarily to (i) responding to discrete requests for information from the SEC and (ii) negotiating an appropriate resolution with the SEC if the SEC decides to charge the Debtor. During the course of the SEC Investigation, L&W also represented a total of 20 current or former officers, directors or employees of the Debtor in investigative testimony or interviews in the SEC Investigation. c. If the SEC staff were to reach a preliminary determination to recommend charges against any of those individuals (known as a "Wells Call"), each of those individuals would be entitled to make a written presentation to the SEC staff (known as a "Wells Submission"), as well as meet with the staff to attempt to persuade the SEC not to file charges. If the SEC staff does make a Wells Call to a current or former officer or director, the Debtor and L&W will assess at that point L&W's continued representation of such individuals and whether the Debtor will advance the legal fees necessary to prepare a Wells Submission or otherwise resolve the matter. d. If the Debtor's current or former officers or directors are charged by the SEC in a complaint filed in federal court or in an Order Instituting Proceedings commencing an administrative proceeding, the costs of legal services incurred subsequent thereto will be paid by Side-A of the AIG D&O insurance policy without the requirement of a retention funded by the Debtor. The costs of legal services incurred prior to any charge brought by the SEC, however, are not specifically covered by Side-A of the AIG D&O insurance policy. L&W is owed as of the Petition Date, $6,448,417.29 by the Debtor for prepetition services performed. In connection with its potential retention in the Chapter 11 Case, L&W conducted an investigation to ascertain conflicts and connections with the Debtor's creditors and equity security holders. As a result of the Conflicts Investigation, L&W has determined that it does not hold or represent any interest adverse to the Debtor or its estate with respect to the Representative Matters. In the event that any conflicts arise on the matters for which L&W is to be retained, either L&W will obtain appropriate waivers or the Debtor will engage special conflicts counsel. Except for a compensation arrangement for and among the partners at L&W, L&W has not shared or agreed to share any of its compensation in connection with this matter with any other person or entity. The firm's rates are: Billing Category Range of Hourly Rates ---------------- --------------------- Partners $830-$1200 Senior Counsel $820-$1020 Associate $395-$825 Paralegal & Analyst $170-$615 Project Assistant $190-245 A hearing on the motion is set for September 16, 2013, at 1:00 p.m. before the Honorable Brendan L. Shannon in the United States Bankruptcy Court for the District of Delaware, 824 N. Market Street, 6th floor, Courtroom #1, Wilmington, Delaware 19801. Proposed Counsel to the Debtors can be reached at: Robert S. Brady, Esq. Donald J. Bowman, Jr., Esq. Robert F. Poppiti, Jr., Esq. Ian J. Bambrick, Esq. 1000 N. King Street Rodney Square Wilmington, DE 19801 Telephone: (302) 571-6600 Fax: (302) 571-1253 About AgFeed Industries AgFeed Industries, Inc., and its affiliates filed voluntary petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 13-11761) on July 15, 2013, with a deal to sell most of its subsidiaries to The Maschhoffs, LLC, for cash proceeds of $79 million, absent higher and better offers. The Debtors estimated assets of at least $100 million and debts of at least $50 million. Keith A. Maib signed the petition as chief restructuring officer. Hon. Brendan Linehan Shannon presides over the case. Donald J. Bowman, Jr., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, serve as the Debtors' counsel. BDA Advisors Inc. acts as the Debtors' financial advisor. The Debtors' claims and noticing agent is BMC Group, Inc. AGFEED INDUSTRIES: May Hire Foley & Lardner as Special Counsel -------------------------------------------------------------- AgFeed USA, LLC, et al., was authorized by the U.S. Bankruptcy Court for the District of Delaware to employ Foley & Lardner LLP as special counsel to, among other things, advise the Debtors with respect to the proposed sale of all or substantially all of the Debtors' assets. The U.S. Trustee's objection to the proposed employment was resolved prior to the Court's ruling. The Court held that with respect to these special matters: * the non-bankruptcy aspects of the proposed sale of all or substantially all of the assets of AgFeed USA and its Debtor subsidiaries pursuant to the APA, including services relating to the documentation of the sale transaction, and closing of the sale; * the non-bankruptcy aspects of the possible sale of certain Oklahoma-based assets (excluded from the APA) of AgFeed USA and its Debtor subsidiaries, including services relating to the documentation of the sale transaction; * the non-bankruptcy aspects of possible sale of certain China- based assets of AgFeed industries, Inc. or its subsidiaries, including services relating to the documentation of the sale transaction; the Debtors' general bankruptcy counsel, Young Conaway Stargatt & Taylor, LLP as opposed to Foley, will advise the Debtor and their boards of directors on bidding procedures issues such as bidders' qualification and whether a particular bid is higher or better, whereas, Foley, as the Debtors' special counsel, will advise the Debtors or their boards of directors with respect to the meaning, potential interpretation and intent of proposed language changes of the documentation submitted by potential and qualified bidders. These mater are outside the scope of Foley's retention: * negotiation of confirmation of any plans of reorganization or disclosure statements; * case administration; * avoidance actions under Sections 544, 547, 548 and 550 of the Bankruptcy Code; * objections to claims, except to the extent that the object arises in the context of litigation authorized as a Special Matter. About Agfeed Industries AgFeed Industries, formerly known as M2 P2, LLC, is an international agribusiness with operations in the U.S. and China. AgFeed has two business lines: animal nutrition in premix, concentrates and complete feeds and hog production. In the U.S., AgFeed's hog production unit, M2P2, is a market leader in setting new standards for production efficiency and productivity. AgFeed believes the transfer of these processes, procedures and techniques will allow its new Western-style Chinese hog production units to set new standards for production in China. China is the world's largest pork market consuming 50 percent of global production and over 62 percent of total protein consumed in China is pork. Hog production in China currently enjoys income tax free status. AgFeed Industries, Inc., and its affiliates filed voluntary petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 13-11761) on July 15, 2013, with a deal to sell most of its subsidiaries to The Maschhoffs, LLC, for cash proceeds of $79 million, absent higher and better offers. The Debtors estimated assets of at least $100 million and debts of at least $50 million. Keith A. Maib signed the petition as chief restructuring officer. Hon. Brendan Linehan Shannon presides over the case. Donald J. Bowman, Jr., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, serve as the Debtors' counsel. BDA Advisors Inc. acts as the Debtors' financial advisor. The Debtors' claims and noticing agent is BMC Group, Inc. AGFEED INDUSTRIES: Committee Retains Lowenstein Sandler as Counsel ------------------------------------------------------------------ The Official Committee of Unsecured Creditors in the bankruptcy cases of AgFeed Industries, Inc. et al., asks the U.S. Bankruptcy Court to retain Lowenstein Sandler as counsel. The firm's rates are: Professional Rates ------------ ----- Partners $500-$985 Senior Counsel and Counsel $385-$685 Associates $275-$480 Paralegal and Assistants $160-$270 The Committee attests that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. About AgFeed Industries AgFeed Industries, Inc., and its affiliates filed voluntary petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 13-11761) on July 15, 2013, with a deal to sell most of its subsidiaries to The Maschhoffs, LLC, for cash proceeds of $79 million, absent higher and better offers. The Debtors estimated assets of at least $100 million and debts of at least $50 million. Keith A. Maib signed the petition as chief restructuring officer. Hon. Brendan Linehan Shannon presides over the case. Donald J. Bowman, Jr., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, serve as the Debtors' counsel. BDA Advisors Inc. acts as the Debtors' financial advisor. The Debtors' claims and noticing agent is BMC Group, Inc. AGFEED INDUSTRIES: Committee Taps Greenberg Traurig as Co-counsel ----------------------------------------------------------------- The Official Committee of Unsecured Creditors appointed in the Chapter 11 cases of AgFeed USA, LLC and its affiliated debtors seeks court authority to retain Greenberg Traurig, LLP as co-counsel to the Committee, nunc pro tunc to July 23, 2013. The principal attorneys and paralegals proposed to represent the Committee will be paid based on these hourly rates: Professional Rate ------------ ---- Paul T. Fox $780 Matthew T. Gensburg 850 Nancy A. Peterman 850 Sandra G. M. Selzer 585 Elizabeth Thomas 260 Carla Greenberg 150 Other attorneys and paralegals will render service to the Committee as needed and will be paid based on these hourly rates: Professional Rate ------------ ---- Shareholders $335 to $1,145 Of Counsel $325 to $1,050 Associates $300 to $725 Paralegals $95 to $335 Nancy A. Peterman, a shareholder at Greenberg Traurig, assures the Court that the firm does not hold or represent any interest adverse to the Debtors or their Chapter 11 estates, their creditors, or any other party-in-interest, and is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Ms. Peterman, however, discloses that prior to the formation of the Committee, Greenberg Traurig represented Milton P. Webster, III, a former director of AgFeed Industries, Inc., one of the Debtors, in connection with the Securities and Exchange Commission's investigation of the Debtors and in connections with a pending securities class action case pending against certain officers and directors. Greenberg Traurig only represented Mr. Webster in these matters, and has since terminated this representation, Ms. Peterman says. Greenberg Traurig did represent Mr. Webster at a deposition on July 30, 2013, but will no longer represent him in matters relating to the Debtors or these cases, other than in connection with Mr. Webster's role as a member of the Committee, she adds. Greenberg Traurig was paid a total of $75,000 for legal fees and expenses incurred in connection with its representation of Mr. Webster, $50,000 of which was paid by the the Debtors on October 23, 2012 and $25,000 of which was paid by one of the Debtors' insurance carriers, AIG, on July 5, 2013. Morever, Greenberg Traurig represented, in the past, various investors who acquired equity securities in the AgFeed Industries, Inc. via private investment in public equity transactions. These representations are no longer active and concluded two years ago, notes Ms. Peterman. Proposed counsel to the Committee are: Sandra G. M. Selzer, Esq. GREENBERG TRAURIG, LLP The Nemours Building 1007 North Orange Street, Suite 1200 Wilmington, DE 19801 Telephone: (302) 661-7000 Facsimile: (302) 661-7360 E-mail: selzers@gtlaw.com - and - Nancy A. Peterman, Esq. Matthew T. Gensburg, Esq. Paul T. Fox, Esq. GREENBERG TRAURIG, LLP 77 West Wacker Drive, Suite 3100 Chicago, IL 60601 Telephone: (312) 476-5027 Facsimile: (312) 456-8435 E-mail: petermann@gtlaw.com gensburgm@gtlaw.com foxp@gtlaw.com About Agfeed Industries AgFeed Industries, formerly known as M2 P2, LLC, is an international agribusiness with operations in the U.S. and China. AgFeed has two business lines: animal nutrition in premix, concentrates and complete feeds and hog production. In the U.S., AgFeed's hog production unit, M2P2, is a market leader in setting new standards for production efficiency and productivity. AgFeed believes the transfer of these processes, procedures and techniques will allow its new Western-style Chinese hog production units to set new standards for production in China. China is the world's largest pork market consuming 50 percent of global production and over 62 percent of total protein consumed in China is pork. Hog production in China currently enjoys income tax free status. AgFeed Industries, Inc., and its affiliates filed voluntary petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case No. 13-11761) on July 15, 2013, with a deal to sell most of its subsidiaries to The Maschhoffs, LLC, for cash proceeds of $79 million, absent higher and better offers. The Debtors estimated assets of at least $100 million and debts of at least $50 million. Keith A. Maib signed the petition as chief restructuring officer. Hon. Brendan Linehan Shannon presides over the case. Donald J. Bowman, Jr., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor, serve as the Debtors' counsel. BDA Advisors Inc. acts as the Debtors' financial advisor. Foley & Lardner LLP serve as their special counsel. The Debtors' claims and noticing agent is BMC Group, Inc. AMERICAN AIRLINES: Airlines, DOJ Told to Confer on Mediator ----------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that AMR Corp. bested the U.S. Justice Department and persuaded the federal district judge to commence trial Nov. 25 on the government's antitrust suit to bar the merger of American Airlines Inc. and US Airways Group Inc. It will begin about two weeks later than the airline wanted. The government didn't want the trial until March. According to the report, U.S. District Judge Colleen Kollar- Kotelly in Washington told the contending parties to submit a status report on Sept. 30, followed by another conference on Oct. 1. Although the judge didn't compel settlement talks, she told them to "confer" about a mediator "for use at the parties' discretion." 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: Brazil Fines Airline Over Cartel Claims ---------------------------------------------------------- Samantha Pearson, writing for Financial Times, reported that Brazil's antitrust regulator has slapped a fine against American Airlines Inc. over an alleged air cargo cartel in the country. Cade said late on Aug. 28 that it would fine American Airlines, three other companies and seven individuals, a total of just over R$293 million (US$125 million) over the alleged cartel, which it said operated between 2003 and 2005. The fines relate to allegations that the four companies fixed the price and date of fuel surcharges on international freight services. "The price cartel generated abusive prices that were passed on to consumers and to the supply chain," the news agency quoted Vinicius Marques de Carvalho, the head of Cade, as saying. "We are talking about air cargo. This practice clearly had an impact on the country's logistics costs," he 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. The U.S. U.S. Department of Justice, however, has launched an antitrust challenge to the proposed merger. 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: Retiree Wants Sanctions vs. AMR Lawyers ---------------------------------------------------------- A retired worker asked the U.S. Bankruptcy Court in Manhattan to impose sanctions against the attorneys of AMR Corp. for their "failure to cite controlling authority" with regards to employees who pre-funded their retiree health care benefits. In July 2012, AMR filed a case against the committee representing retired workers, seeking a declaratory judgment that their health care benefits are unvested benefits which the company can modify unilaterally. The following month, AMR filed a motion seeking summary judgment that the health care benefits are unvested benefits because the governing plan reserved the company's rights to modify them, and that it did not contain a promise of lifetime benefits. Patricia Young, a former American Airlines flight attendant, said that prior to her retirement in October 2003, American Airlines had a retiree standard medical plan that provided a retired flight attendant with $50,000 total lifetime medical expenses. A plan option allowed flight attendants to pre-fund retiree medical benefits that would pay an additional $50,000 when the benefits were exhausted, Ms. Young said in court filings. Ms. Young said that while AMR can void its pre-funded retiree health care benefits in the lawsuit by paying participants the money that they and the company pre-paid, the company "has failed to cite controlling authority for doing so." She also said that AMR is not entitled to summary judgment on the basis that the retiree health care benefits are unvested or do not provide lifetime benefits for flight attendants who have retired. "The court should sanction the AMR attorneys for failure to cite controlling authority and require AMR to cite controlling authority in support of its actions in voiding pre-paid health care benefits," Ms. Young said in court papers. 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. The U.S. U.S. Department of Justice, however, has launched an antitrust challenge to the proposed merger. 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: To Pay $481,000 to ZS Associates --------------------------------------------------- ZS Associates, Inc. said it reached an agreement with American Airlines Inc. to settle its objection to the carrier's proposal to pay the firm only half the amount that it actually owes under their consulting services agreement. Under the deal, American Airlines agreed to pay $481,647 in exchange for the withdrawal of the objection, ZS Associates said in a court filing. American Airlines has filed with the U.S. Bankruptcy Court in Manhattan a list of contracts it will assume as part of its proposed plan to get out of bankruptcy protection. The consulting services agreement was included in the list in which the carrier proposed to pay the firm only $219,383 to cure any default under the contract. 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. The U.S. U.S. Department of Justice, however, has launched an antitrust challenge to the proposed merger. 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) ANACOR PHARMACEUTICALS: Plans to Sell $50MM Worth of Securities --------------------------------------------------------------- Anacor Pharmaceuticals, Inc., intends to sell up to $50,000,000 of any combination of the Company's common stock, preferred stock, debt securities or warrants. Securities may be sold by the Company to or through underwriters or dealers, directly to purchasers or through agents designated from time to time. The Company's common stock is listed on the NASDAQ Global Market under the symbol "ANAC." On Aug. 23, 2013, the last reported sale price of the Company's common stock on the NASDAQ Global Market was $10.65 per share. A copy of the Form S-3 prospectus is available for free at: http://is.gd/fguCpC About Anacor Palo Alto, Calif.-based Anacor Pharmaceuticals (NASDAQ: ANAC) is a biopharmaceutical company focused on discovering, developing and commercializing novel small-molecule therapeutics derived from its boron chemistry platform. Anacor has discovered eight compounds that are currently in development. Its two lead product candidates are topically administered dermatologic compounds- tavaborole, an antifungal for the treatment of onychomycosis, and AN2728, an anti-inflammatory PDE-4 inhibitor for the treatment of atopic dermatitis and psoriasis. The Company's balance sheet at March 31, 2013, showed $37.4 million in total assets, $45.4 million in total liabilities, and a stockholders' deficit of $8 million. "Since inception, the Company has generated an accumulated deficit as of March 31, 2013, of approximately $230.3 million, and will require substantial additional capital to fund research and development activities, including clinical trials for its development programs and preclinical activities for its product candidates." As reported in the TCR on March 2, 2013, Ernst & Young LLP, in Redwood City, California, expressed substantial doubt about Anacor's ability to continue as a going concern, citing the Company's recurring losses from operations and its need for additional capital. ANCHOR BANCORP: Wins Prepackaged Plan Approval ---------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Anchor BanCorp Wisconsin Inc. won court approval of its prepackaged reorganization plan 18 days after filing a Chapter 11 petition. The bank holding company filed a Chapter 11 petition on Aug. 12 in its Madison, Wisconsin hometown because one of three secured bank lenders wouldn't go along with an out-of-court recapitalization. The judge could approve the plan by signing a confirmation order on Aug. 30 because the requisite percentages of creditors voted in favor of the plan before bankruptcy. The bank received assistance from the government under the Troubled Asset Relief Program, in return giving $139 million in preferred stock to the U.S. Treasury. The Treasury voted in favor of the Chapter 11 plan giving the government 3.3 percent of the reorganized holding company's new common stock in exchange for the preferred stock. The plan gives new investors 96.7 percent of the new common stock in return for a $175 million equity contribution. Secured bank lenders owed $183 million receive $49 million cash under the Chapter 11 plan. Lenders Bank of America NA and US Bank NA voted in favor of the plan while Associated Bank NA voted against. Common stock is extinguished. About Anchor Bancorp Madison, Wisconsin-based Anchor BanCorp Wisconsin Inc. sought protection under Chapter 11 of the Bankruptcy Code on Aug. 12, 2013 (Case No. 13-14003, Bankr. W.D. Wis.) to implement a "pre-packaged" plan of reorganization in order to facilitate the restructuring of the Company and the recapitalization of AnchorBank, fsb, a wholly-owned subsidiary of the Company. As of March 31, 2013, the Debtor listed total assets of $2,367,583,000 and total liabilities of $2,427,447,000. Chief Judge Robert D. Martin oversees the Chapter 11 case. The Debtor is represented by Kerkman Dunn Sweet DeMarb as lead bankruptcy counsel and Skadden, Arps, Slate, Meagher & Flom LLP, as special counsel. CohnReznick LLP serves as the Debtor's financial advisor. Anchor BanCorp is a registered savings and loan holding company incorporated under the laws of the State of Wisconsin. The Company is engaged in the savings and loan business through its wholly owned banking subsidiary, AnchorBank, fsb. Anchor BanCorp and its wholly-owned subsidiaries, AnchorBank FSB, each consented to the issuance of an Order to Cease and Desist by the Office of Thrift Supervision. The Corporation and the Bank continue to diligently work with their financial and professional advisors in seeking qualified sources of outside capital, and in achieving compliance with the requirements of the Orders. In connection with the Plan, the Company has entered into definitive stock purchase agreements with institutional and other private investors as part of a $175 million recapitalization of the institution. No new investor will own in excess of 9.9 percent of the common equity of the recapitalized Holding Company. The reorganization filing includes only Anchor BanCorp, the holding company for the Bank, allowing the Bank to remain outside of bankruptcy and to continue normal operations. The Bank operates 55 offices throughout Wisconsin. Operations at the Bank will continue as usual throughout the reorganization process. ANV SECURITY: Incurs $403K Net Loss in Second Quarter ----------------------------------------------------- ANV Security Group, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $402,655 on continuing operations revenues of $21,061 for the three months ended June 30, 2013, compared with a net loss of $5.8 million on continuing operations revenues of $286 for the same period last year. The Company reported a net loss of $551,614 on continuing operations revenues of $200,936 for the six months ended June 30, 2013, compared with a net loss of $6.9 million on continuing operations revenues of $286 for the corresponding period of 2012. "Income from discontinued operations was $nil for six months ended June 30, 2013, compared to ($6,319,145) for the same period in 2012. There is no income (loss) in this year due to all the discontinued operations have been disposed last year." The Company's balance sheet at June 30, 2013, showed $2.2 million in total assets, $102,249 in total liabilities, and stockholders' equity of $2.1 million. "The Company has incurred $15.6 million losses since inception. Further, as of June 30, 2013, the cash resources of the Company were insufficient to meet its current business plan. These and other factors raise substantial doubt about the Company's ability to continue as a going concern." A copy of the Form 10-Q is available at http://is.gd/snuy1E Shenzhen, China-based ANV Security Group, Inc., and its subsidiaries are specialized in providing alarm service through an internet based video service platform. This platform performs instant notification to the owner via SMS, e-mail, telephone or cellular phone when an alarm is triggered worldwide in any time zone and captures the event images in user accessible video surveillance servers. ARI-RC 6 LLC: Has No Right to Property Rents, U.S. Bank Asserts --------------------------------------------------------------- U.S. Bank, National Association, opposes approval of ARI-RC 6, LLC, et al.'s motion for cash collateral use. U.S. Bank argues that the Debtors have no right to any of the rents from a property in Thousand Oaks, California, to which they have tenant-in-common (TIC) interests. The Bank specifies that the Debtors, as passive TIC investors, have no right to manage, operate or maintain the Property and cannot -- without the unilateral consent of the other 30 TIC Investors -- make fundamental decisions relating to the Property. Moreover, U.S. Bank relates that the Debtors admit that there is no equity in the Property; that the Property has not generated a profit since December 2011; that the Property does not currently generate sufficient income to pay for operating expenses and debt service payments; and that the Rents from the Property will significantly decreased in September 2013 with the expiration of the Philip Electronics lease. U.S. Bank, as Trustee for the Registered Holders of ML-CFC Commercial Mortgage Trust 2007-5, Commercial Mortgage Pass-Through Certificates, Series 2007-5, by and through CWCapital Asset Management LLC, solely in its capacity as Special Servicer, is the only creditor in the Debtors' cases. Keith C. Owens, Esq., and Jennifer L. Nassiri, Esq., of Venable LLP, represent U.S. Bank, N.A. About ARI-RC ARI-RC 6, LLC, and four related entities -- ARI-RC 14, LLC, ARI-RC 12, LLC, ARI-RC 21, LLC, ARI-RC 23, LLC -- filed voluntary petitions under Chapter 11 on July 15, 2013. Kenneth Greene signed the petitions as president. ARI-RC 3, LLC, and nine affiliates filed for Chapter 11 protection on Aug. 1, 2013. ARI-RC 11 and three more affiliates subsequently filed their own Chapter 11 cases on Aug. 2, 2013. The petitions were signed by R. Frederick Hodder, Jr. and Monroe Sawhill Hodder, trustees. The Debtors own tenant in common (TIC) interests in two commercial buildings commonly known as Rancho Conejo I and II, located at 1525 and 1535 Rancho Conejo Boulevard, in Thousand Oaks, California. The Debtors and 16 related TIC Investors, who have not filed for bankruptcy, are passive investors with varying percentage ownership interests in the Property. The Debtors' cases are jointly administered under the lead case of ARI-RC 6, Case No. 13-14692, in the U.S. Bankruptcy Court for the Central District of California. The Debtors estimated assets and debts at $10 million to $50 million at the time of the filings. Judge Alan M. Ahart presides over the cases. John-Patrick M. Fritz, Esq., and Daniel H. Reiss, Esq., at Levene Neale Bender Rankin, et al., represent the Debtors in their restructuring efforts. ARI-RC 6: Hearing on 2 U.S. Bank Motions Postponed to Nov. 6 ------------------------------------------------------------ The hearings on two of U.S. Bank, N.A.'s motions in the ARI-RC 6, LLC, et al.'s bankruptcy cases have been continued to Nov. 6, 2013, at 10:00 a.m. The motions refer to (i) a bid for the dismissal of the Debtors' cases and (ii) relief from the automatic stay sought to allow the Bank to pursue its rights in the Debtors' property in 1525 and 1535 Rancho Conejo Boulevard, Thousand Oaks, California. The postponement of the hearing date was stipulated to by the parties and approved by the Bankruptcy Court. The parties relate that they are currently working on establishing a discovery schedule on the two Motions. The hearing was initially set for Sept. 25, 2013. U.S. Bank, as Trustee for the Registered Holders of ML-CFC Commercial Mortgage Trust 2007-5, Commercial Mortgage Pass-Through Certificates, Series 2007-5, by and through CWCapital Asset Management LLC, solely in its capacity as Special Servicer, is the only creditor in the Debtors' cases. Keith C. Owens, Esq., and Jennifer L. Nassiri, Esq., of Venable LLP, represent U.S. Bank, N.A. About ARI-RC ARI-RC 6, LLC, and four related entities -- ARI-RC 14, LLC, ARI-RC 12, LLC, ARI-RC 21, LLC, ARI-RC 23, LLC -- filed voluntary petitions under Chapter 11 on July 15, 2013. Kenneth Greene signed the petitions as president. ARI-RC 3, LLC, and nine affiliates filed for Chapter 11 protection on Aug. 1, 2013. ARI-RC 11 and three more affiliates subsequently filed their own Chapter 11 cases on Aug. 2, 2013. The petitions were signed by R. Frederick Hodder, Jr. and Monroe Sawhill Hodder, trustees. The Debtors own tenant in common (TIC) interests in two commercial buildings commonly known as Rancho Conejo I and II, located at 1525 and 1535 Rancho Conejo Boulevard, in Thousand Oaks, California. The Debtors and 16 related TIC Investors, who have not filed for bankruptcy, are passive investors with varying percentage ownership interests in the Property. The Debtors' cases are jointly administered under the lead case of ARI-RC 6, Case No. 13-14692, in the U.S. Bankruptcy Court for the Central District of California. The Debtors estimated assets and debts at $10 million to $50 million at the time of the filings. Judge Alan M. Ahart presides over the cases. John-Patrick M. Fritz, Esq., and Daniel H. Reiss, Esq., at Levene Neale Bender Rankin, et al., represent the Debtors in their restructuring efforts. ARI-RC 6: Wants to Hire Levene Neal as Bankr. Counsel ----------------------------------------------------- ARI-RC 6 LLC, et al., is seeking permission from the U.S. Bankruptcy Court for the Central District of California to employ Levene, Neale, Bender Yoo & Brill L.L.P. as their general bankruptcy counsel effective as of the Petition Date. The firm will be rendering general legal services to the Debtors in the course of their bankruptcy proceedings. Daniel H. Reiss, Esq. and J.P. Fritz, Esq. are the primary attorneys at LNBYB expected to be responsible for representation of the Debtors. The firm will be charging for their services in these hourly rates: Daniel H. Reiss $575 John-Patrick M. Fritz $430 Paraprofessionals $195 The firm will also seek reimbursement of actual and necessary expenses related to their contemplated services. One year prior to the bankruptcy filings, the Debtors paid $296,000 to LNBYB. Certain amounts have been drawn from the Retainer since the filing of the cases and there remains a postpetition retainer of $162,141. Mr. Reiss assures the Court that his firm does not hold nor represent interests adverse to the Debtors or the Debtors' estates and is thus, a "disinterested person" as the term is defined under Sec. 101(14) of the Bankruptcy Code. About ARI-RC ARI-RC 6, LLC, and four related entities -- ARI-RC 14, LLC, ARI-RC 12, LLC, ARI-RC 21, LLC, ARI-RC 23, LLC -- filed voluntary petitions under Chapter 11 on July 15, 2013. Kenneth Greene signed the petitions as president. ARI-RC 3, LLC, and nine affiliates filed for Chapter 11 protection on Aug. 1, 2013. ARI-RC 11 and three more affiliates subsequently filed their own Chapter 11 cases on Aug. 2, 2013. The petitions were signed by R. Frederick Hodder, Jr. and Monroe Sawhill Hodder, trustees. The Debtors own tenant in common (TIC) interests in two commercial buildings commonly known as Rancho Conejo I and II, located at 1525 and 1535 Rancho Conejo Boulevard, in Thousand Oaks, California. The Debtors and 16 related TIC Investors, who have not filed for bankruptcy, are passive investors with varying percentage ownership interests in the Property. The Debtors' cases are jointly administered under the lead case of ARI-RC 6, Case No. 13-14692, in the U.S. Bankruptcy Court for the Central District of California. The Debtors estimated assets and debts at $10 million to $50 million at the time of the filings. Judge Alan M. Ahart presides over the cases. ARI-RC 6: Files Schedules of Assets and Liabilities --------------------------------------------------- ARI-RC 6 LLC filed with the U.S. Bankruptcy Court for the Central District of California its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property UNKNOWN B. Personal Property $38,198 C. Property Claimed as Exempt D. Creditors Holding $27,876,207 Secured Claims E. Creditors Holding 0 Unsecured Priority Claims F. Creditors Holding 5,135 Unsecured Non-priority Claims ----------- ----------- TOTAL UNKNOWN $27,881,342 About ARI-RC ARI-RC 6, LLC, and four related entities -- ARI-RC 14, LLC, ARI-RC 12, LLC, ARI-RC 21, LLC, ARI-RC 23, LLC -- filed voluntary petitions under Chapter 11 on July 15, 2013. Kenneth Greene signed the petitions as president. ARI-RC 3, LLC, and nine affiliates filed for Chapter 11 protection on Aug. 1, 2013. ARI-RC 11 and three more affiliates subsequently filed their own Chapter 11 cases on Aug. 2, 2013. The petitions were signed by R. Frederick Hodder, Jr. and Monroe Sawhill Hodder, trustees. The Debtors own tenant in common (TIC) interests in two commercial buildings commonly known as Rancho Conejo I and II, located at 1525 and 1535 Rancho Conejo Boulevard, in Thousand Oaks, California. The Debtors and 16 related TIC Investors, who have not filed for bankruptcy, are passive investors with varying percentage ownership interests in the Property. The Debtors' cases are jointly administered under the lead case of ARI-RC 6, Case No. 13-14692, in the U.S. Bankruptcy Court for the Central District of California. The Debtors estimated assets and debts at $10 million to $50 million at the time of the filings. Judge Alan M. Ahart presides over the cases. John-Patrick M. Fritz, Esq., and Daniel H. Reiss, Esq., at Levene Neale Bender Rankin, et al., represent the Debtors in their restructuring efforts. ARMORWORKS ENTERPRISES: Can Make Intercompany Loan to AW Canada --------------------------------------------------------------- On Aug. 30, 2013, the U.S. Bankruptcy Court for the District of Arizona authorized ArmorWorks Enterprises, LLC, to make a multiple advance secured term loan of up to $500,000 to ArmorWorks Enterprises, Canada, ULC. for working capital purposes and to preserve the going concern value of the business The Order also: (ii) authorized a one-time variance from the Budget under the Final DIP Order to allow the loan to AW Canada; (ii) approved a non-refundable, fully earned $7,500 fee to DIP Lender Lancelot Armor, LLC; (iv) amended Sec. 6.1(i) of the DIP Credit Agreement to provide that it will be an "Event of Default: if "the balance of Eligible Accounts is at any time less than $3,500,000", and (iv) amending the definition of "Eligible Accounts" in the DIP Credit Agreement to include 75% of the net Eligible Accounts of AW Canada, up to $500,000. ArmorWorks is authorized to make up to a $500,000 multiple advance term loan to AW Canada, to be disbursed on an "as needed" basis, with interest at the rate being charged to the Debtors under the DIP Facility, secured by a lien against all assets of AW Canada, provided that the Debtors have an agreement in place with Defense Finance and Accounting Services ("DFAS") Office of General Counsel, to the satisfaction of DIP Lender, for the immediate release of post-petition accounts receivable due and owing to ArmorWorks under the Protective Over Garment (POG) body armor Contract W91CRB12D0011, and the Debtor has confirmed that the post-petition payments required under the foregoing agreement have been received. This Order will not be stayed for any length of time, and will be effective immediately, notwithstanding Federal Bankruptcy Rule 6004(h) or any other applicable rules. 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: CEO Provides Update on Company's Progress -------------------------------------------------------- As Seen on TV, Inc., filed with the U.S. Securities and Exchange Commission a copy of a letter to sharehoders from Ronald C. Pruett, Jr., chief executive officer of the Company. The CEO provided an update on the Company's significant progress across a number of fronts and the Company's vision for the future of the business. "Leading this company and developing its unique assets is a rare opportunity," Mr. Pruett stated. "The management team and I are more excited than ever about what lies ahead." According to Mr. Pruett, they've evaluated all aspects of the Company's operations in order to improve customer satisfaction, reduce costs, and focus on the right opportunities to leverage the Company's core assets. "We made difficult decisions that reflect our approach of methodically partnering with outsourced specialists in order to scale our businesses while emphasizing variable, controllable costs over fixed costs. While reducing revenues in the short- term, we believe the results down the road will demonstrate how we've shifted our resources to the most promising opportunities while making our business more efficient and effective." A full-text copy of the letter is available for free at: http://is.gd/v96jhJ 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 posted 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. 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. 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. 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," the Company said in its quarterly report for the period ended June 30, 2013. ASTOR & BLACK: Files for Chapter 7 Liquidation ---------------------------------------------- Tim Feran at The Columbus Dispatch reports that Astor & Black Custom Clothiers is going out of business, a year after moving its headquarters to Fort Lauderdale, Fla., from Columbus. The custom suit-maker filed for Chapter 7 liquidation on August 29, citing assets of $1.7 million and liabilities of $8.5 million, the report discloses. Astor & Black was founded in 2004 in Columbus by David Schottenstein of the local retailing family, who sold majority ownership of his 7-year-old business to private investors in 2011. Mr. Schottenstein, who was 21 when he founded Astor & Black, said he had not been involved in the business since selling it two years ago, the report relays. The Columbus Dispatch notes that among large creditors, only BMW Bank of North America, to whom Astor & Black owes $67,000, holds secured debt. Other large creditors, but with unsecured debt, are Colorado Department of Revenue, $136,552; Louisiana Department of Revenue, $118,442; North Carolina Department of Revenue, $68,409; and Missouri Department of Revenue, $42,824, The Columbus Dispatch adds. ATLS ACQUISITION: LMS Seeks Extension of Lease Decision Deadline ---------------------------------------------------------------- Debtor Liberty Medical Supply, Inc., asks the Bankruptcy Court to extend its deadline to assume or reject certain unexpired non- residential real estate leases until Nov. 13, 2013. The landlords have each consented in writing to the sought extension. As of the Petition Date, LMS was a party to the following unexpired non-residential leases: a. Debtor/Tenant: Liberty Medical Supply, Inc. Landlord: Grady G. Byrd Jr. and Grady G. Byrd III Premises: 4E Long Shoals Road, Arden, North Carolina b. Debtor/Tenant: Liberty Medical Supply, Inc. Landlord: Oaklawn Center, Ltd. Premises: 2729 New Boston Road, Suite 36B, Texarkana, Texas c. Debtor/Tenant: Liberty Medical Supply, Inc. Landlord: Healthcare Realty Services, Inc., as agent for HRT of Roanoke, Inc. Premises: 2157-67 Apperson Drive, Lee-Hi Business Center, Salem, Virginia The Court previously entered its order extending the time to assume or reject the Leases until Sept. 13, 2013. "The Debtors have been diligently working with their major creditor constituencies, including the Committee, to negotiate a chapter 11 plan process that will maximize the value of their estates. If the Debtors fail to obtain the requested extension, such failure may be to the economic detriment of the estates, may impair the intended plan process, and may frustrate the Debtors' efforts to maximize the value of their estates," Dennis A. Meloro, Esq., -- Email: melorod@gtlaw.com -- at Greenberg Traurig, LLP, in Wilmington, Delaware, counsel to the Debtor, tells the Court. About Liberty Medical Entities that own diabetics supply provider Liberty Medical led by ATLS Acquisition, LLC, sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-10262) on Feb. 15, 2013, just less than three months after a management buy-out and amid a notice by the lender who financed the transaction that it's exercising an option to acquire the business. Liberty has been in business for 22 years serving the needs of both type 1 and type 2 diabetic patients. Liberty is a mail order provider of diabetes testing supplies. In addition to diabetes testing supplies, the Debtors also sell insulin pumps and insulin pump supplies, ostomy, catheter and CPAP supplies and operate a large mail order pharmacy. Liberty operates in seven different locations and has 1,684 employees. The Debtors have tapped Greenberg Traurig, LLP, as counsel; Ernst & Young LLP to provide investment banking advice; and Epiq Bankruptcy Solutions, LLC, as claims and noticing agent for the Clerk of the Bankruptcy Court. An official committee of unsecured creditors has been appointed in the case and consists of LifeScan, Inc., Abbott Laboratories, and Teva Pharmaceuticals USA, Inc. They are represented by Joseph H. Huston Jr., Esq., Maria Aprile Sawczuk, Esq., and Camille C. Bent, Esq. of Stevens & Lee P.C. as well as Bruce Buechler, Esq., S. Jason Teele, Esq., and Nicole Stefanelli, Esq. of Lowenstein Sandler LLP. The Committee has tapped Mesirow Financial Consulting, LLC, as financial advisors. BERNARD L. MADOFF: Picard Revises Suit Against Merkin ----------------------------------------------------- Chad Bray, writing for The Wall Street Journal, reports that lawyers for Irving Picard, the court-appointed trustee for Bernard Madoff's firm, filed an amended lawsuit late Friday against money manager J. Ezra Merkin, who funneled hundreds of millions of dollars to Madoff. They allege that Mr. Merkin knew that Mr. Madoff's results were impossible and his advisory business was "predicated on a fraud." They said Mr. Merkin "willfully blinded" himself to a variety of indications that Mr. Madoff was engaged in a fraud and that Mr. Merkin enabled the fraud scheme. Mr. Merkin did so despite acknowledging in conversations with Mr. Madoff and others that Mr. Madoff's results were consistent with a Ponzi scheme, Mr. Picard said. The report notes Mr. Merkin has never been charged with committing a crime related to the Madoff scheme. "In desperation to meet a legal burden he cannot meet, Mr. Picard has concocted allegations that he cannot prove," said Andrew Levander, Mr. Merkin's lawyer, according to WSJ. "These allegations are utterly baseless. Indeed, Mr. Merkin personally lost more than $100 million in Madoff's fraud." WSJ relates Mr. Picard faced a Friday deadline to file an amended complaint in the case. The amended complaint contains some new allegations alongside a host of others that have surfaced previously in earlier lawsuits. WSJ notes Mr. Picard is attempting to block a $410 million settlement reached between Mr. Merkin, the former chairman of GMAC Financial Services, and New York Attorney General Eric Schneiderman. Mr. Picard has contested several settlements reached with feeder funds, saying those deals could hurt his ability to collect funds for victims who invested directly with Mr. Madoff's firm. WSJ relates Mr. Picard is seeking to recover at least $560 million that was withdrawn from the Madoff estate by Mr. Merkin's Gabriel Capital Corp. and its various funds over a 13-year period before Mr. Madoff's fraud came to light in December 2008. Mr. Merkin's funds allegedly collected at least $256.2 million in management and incentive fees associated with the Madoff investments, according to the lawsuit. About Bernard L. Madoff Bernard L. Madoff Investment Securities LLC and Bernard L. Madoff orchestrated the largest Ponzi scheme in history, with losses topping US$50 billion. On Dec. 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. The District Court's Protective Order (i) appointed Irving H. Picard, Esq., as trustee for the liquidation of BLMIS, (ii) appointed Baker & Hostetler LLP as his counsel, and (iii) removed the SIPA Liquidation proceeding to the Bankruptcy Court (Bankr. S.D.N.Y. Adv. Pro. No. 08-01789) (Lifland, J.). Mr. Picard has retained AlixPartners LLP as claims agent. On April 13, 2009, former BLMIS clients filed an involuntary Chapter 7 bankruptcy petition against Bernard Madoff (Bankr. S.D.N.Y. 09-11893). The case is before Hon. Burton Lifland. The petitioning creditors -- Blumenthal & Associates Florida General Partnership, Martin Rappaport Charitable Remainder Unitrust, Martin Rappaport, Marc Cherno, and Steven Morganstern -- assert US$64 million in claims against Mr. Madoff based on the balances contained in the last statements they got from BLMIS. On April 14, 2009, Grant Thornton UK LLP as receiver placed Madoff Securities International Limited in London under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D. Fla. 09-16751). The Chapter 15 case was later transferred to Manhattan. In June 2009, Judge Lifland approved the consolidation of the Madoff SIPA proceedings and the bankruptcy case. Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors in United States v. Madoff, No. 09-CR-213 (S.D.N.Y.). From recoveries in lawsuits coupled with money advanced by SIPC, Mr. Picard has paid 53 percent of customers' claims totaling $17.3 billion. Mr. Picard has collected about $9.35 billion, not including an additional $2.2 billion that was forfeit to the government and likewise will go to customers. Mr. Picard is holding more than $4.7 billion he can't distribute on account of outstanding appeals and disputes, such as the issue of interest on customers' claims. The largest holdback, almost $2.8 billion, results from disputed claims. BUILDERS FIRSTSOURCE: R. Robotti Held 4% Equity Stake at Aug. 20 ---------------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Robert E. Robotti and his affiliates disclosed that as of Aug. 20, 2013, they beneficially owned 4,225,917 shares of common stock of Builders FirstSource, Inc., representing 4.4 percent of the shares outstanding. Mr. Robotti previously reported beneficial ownership of 5,083,660 shares of common stock of the Company representing 5.3 percent equity stake as of Jan. 31, 2011. A copy of the amended regulatory filing is available for free at http://is.gd/1Kkb3D About Builders FirstSource Headquartered in Dallas, Texas, Builders FirstSource Inc. -- http://www.bldr.com/-- supplies and manufactures building products for residential new construction. The Company operates in nine states, principally in the southern and eastern United States, and has 55 distribution centers and 51 manufacturing facilities, many of which are located on the same premises as its distribution facilities. Builders FirstSource reported a net loss of $56.85 million in 2012, a net loss of $64.99 million in 2011 and a $95.50 million in 2010. As of June 30, 2013, the Company had $505.50 million in total assets, $513.95 million in total liabilities and a $8.45 million total stockholders' deficit. * * * As reported by the TCR on May 15, 2013, Standard & Poor's Ratings Services Inc. said it raised its corporate credit rating on Dallas-based Builders FirstSource to 'B' from 'CCC'. "The upgrade acknowledges U.S.-based building materials manufacturer and distributor Builders FirstSource Inc.'s 'strong' liquidity based on the company's proposed recapitalization," said Standard & Poor's credit analyst James Fielding. CAPITOL BANCORP: Director David O'Leary Resigns ----------------------------------------------- Capitol Bancorp Ltd. accepted the resignation of David O'Leary, who has resigned from service as the secretary and a member of the board of directors. Mr. O'Leary was a founding member of the board of directors in 1988 and has served as a director of Capitol and its first bank affiliate since 1982. About Capitol Bancorp Capitol Bancorp Ltd. and Financial Commerce Corporation filed voluntary Chapter 11 bankruptcy petitions (Bankr. E.D. Mich. Case Nos. 12-58409 and 12-58406) on Aug. 9, 2012. Capitol Bancorp -- http://www.capitolbancorp.com/-- is a community banking company with a network of individual banks and bank operations in 10 states and total consolidated assets of roughly $2.0 billion as of June 30, 2012. CBC owns roughly 97% of FCC, with a number of CBC affiliates owning the remainder. FCC, in turn, is the holding company for five of the banks in CBC's network. CBC is registered as a bank holding company under the Bank Holding Company Act of 1956, as amended, 12 U.S.C. Sec. 1841, et seq., and trades on the OTCQB under the symbol "CBCR." Lawyers at Honigman Miller Schwartz and Cohn LLP represent the Debtors as counsel. John A. Simon, Esq., at Foley & Lardner LLP, represents the Official Committee of Unsecured Creditors as counsel. In its petition, Capitol Bancorp scheduled $112,634,112 in total assets and $195,644,527 in total liabilities. The petitions were signed by Cristin K. Reid, corporate president. The Company's balance sheet at Sept. 30, 2012, showed $1.749 billion in total assets, $1.891 billion in total liabilities, and a stockholders' deficit of $141.8 million. Prepetition, the Debtor arranged a reorganization plan that was accepted by the requisite majorities of creditors and equity holders in all classes. Problems arose when affiliates of Valstone Partners LLC declined to proceed with a tentative agreement to fund the reorganization by paying $50 million for common and preferred stock while buying $207 million in face amount of defaulted commercial and residential mortgages. CCO LAND: Updated Case Summary & Creditors' Lists ------------------------------------------------- Lead Debtor: CCO Land, LLC 10066 League Line Rd Conroe, TX 77304 Bankruptcy Case No.: 13-35466 Chapter 11 Petition Date: September 1, 2013 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Jeff Bohm Debtors' Counsel: Christopher A Beck, Esq. BAKER BECK PC 202 Avenue A Conroe, TX 77301 Tel: (936) 494-2444 Fax: (936) 494-2445 E-mail: cbeck@bakerbeck.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 Affiliates that simultaneously filed separate Chapter 11 petitions: Debtor Case No. ------ -------- Premium Star Land, LLC 13-35467 Assets: $1,000,001 to $10,000,000 Debts: $1,000,001 to $10,000,000 The petitions were signed by Herman E. Hoffman, manager.. A. CCO Land, LLC did not file a list of its largest unsecured creditors together with its petition. B. Premium Star Land, did not file a list of its largest unsecured creditors together with its petition. CEL-SCI CORP: NYSE MKT Accepts Listing Compliance Plan ------------------------------------------------------ CEL-SCI Corporation on Sept. 3 disclosed that the NYSE MKT has accepted the Company's plan to bring itself into compliance with the Exchange's continued listing standards. The Company previously received notice from the Exchange on July 18, 2013, indicating that the Company is not in compliance with Section 1003(a)(iv) of the Exchange's continued listing standards in the Company Guide. The Company was afforded the opportunity to submit a plan to regain compliance, and on August 19, 2013 the Company submitted its plan to the Exchange. On August 30, 2013, the Exchange notified the Company that it accepted the Company's plan of compliance and granted the Company an extension until September 30, 2013 to regain compliance with the continued listing standards. The Company will be subject to periodic review during the extension period. F ailure to make progress consistent with the plan or to regain compliance with the continued listing standards by the end of the extension period could result in the Company being delisted from the NYSE MKT. About CEL-SCI Corporation CEL-SCI is dedicated to research and development directed at improving the treatment of cancer and other diseases by utilizing the immune system, the body's natural defense system. Its lead investigational therapy is Multikine (Leukocyte Interleukin, Injection), currently being studied in a pivotal global Phase III clinical trial. CEL-SCI is also investigating an immunotherapy (LEAPS-H1N1-DC) as a possible treatment for H1N1 hospitalized patients and as a vaccine (CEL-2000) for Rheumatoid Arthritis (currently in preclinical testing) using its LEAPS technology platform. The investigational immunotherapy LEAPS-H1N1-DC treatment involves non-changing regions of H1N1 Pandemic Flu, Avian Flu (H5N1), and the Spanish Flu, as CEL-SCI scientists are very concerned about the possible emergence of a new more virulent hybrid virus through the combination of H1N1 and Avian Flu, or maybe Spanish Flu. The Company has operations in Vienna, Virginia, and in/near Baltimore, Maryland. CENTRAL ENERGY: Inks LOI to Sell Membership Interests ----------------------------------------------------- Central Energy GP LLC, on Aug. 19, 2013, entered into a non- binding Letter of Intent with a third party outlining the terms and conditions by which CEGP would issue new membership interests. The LOI is non-binding, except for certain provisions including confidentiality and provisions related to the payment of an additional $300,000 as consideration for extending the Stand-Still Period to the earlier to occur of the execution of a definitive purchase agreement or termination of the LOI. The LOI will terminate if the definitive agreement is not completed on or before the 65th day after its execution (Oct. 18, 2013). The additional consideration is also secured by the second lien on the assets of Regional. Should a definitive purchase agreement not be executed and a transaction completed, the entire $400,000 is due and payable to the Third Party on the same terms as set forth in the Letter. On July 17, 2013, a non-affiliated third party tendered a non- binding indication of interest to CEGP, the general partner of Central Energy Partners LP, to purchase newly issued membership interests in CEGP. As an indication of the Third Party's interest in the transaction and as consideration for a "stand-still agreement" with CEGP whereby CEGP agreed for a period of 45 days not to solicit, encourage, entertain or accept any proposal by another third party to acquire an interest in CEGP, the Third Party delivered $100,000 to CEGP on July 19, 2013. The cash consideration is to be repaid to the Third Party in the event a transaction is not consummated. The cash consideration is secured by a second lien on the assets of Regional Enterprises, Inc., a wholly-owned subsidiary of the Company. CEGP is obligated to repay the cash consideration to the Third Party within 30 days after discussions regarding a transaction have terminated. If the consideration has not been paid by the due date, interest will immediately begin to accrue at the rate of 15 percent per annum. Should CEGP fail to pay the $100,000 together with all accrued and unpaid interest by Dec. 31, 2013, the Third Party has the right to foreclose on the assets of Regional without notice to CEGP. Any transaction ultimately agreed to between the parties is subject to the preparation, authorization, execution and delivery of a definitive acquisition agreement, the approval of the definitive agreement by more than 66-2/3 percent of the members of CEGP (as required by its company agreement), the receipt of all material consents and approvals necessary to complete that transaction, and certain other requirements set forth in the LOI. There is no assurance that CEGP and the Third Party will reach agreement on the terms necessary to complete the definitive agreement or that the members of CEGP will approve that agreement. About Central Energy Dallas, Tex.-based Central Energy Partners LP is a publicly-traded Delaware limited partnership. It currently provides liquid bulk storage, trans-loading and transportation services for hazardous chemicals and petroleum products through its wholly-owned subsidiary, Regional Enterprises, Inc. ("Regional"). Central Energy Partners LP filed with the U.S. Securities and Exchange Commission its annual report on Form 10-K disclosing a net loss of $1.03 million on $5.47 million of revenue for the year ended Dec. 31, 2012, as compared with a net loss of $1.36 million on $6.84 million of revenue during the prior year. Montgomery Coscia, LLP, in Plano, Texas, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012, citing insufficient cash flow to pay its current obligations and contingencies as they become due. The Company's balance sheet at March 31, 2013, showed $8.98 million in total assets, $9.58 million in total liabilities and a $592,000 total partners' deficit. Bankruptcy Warning "If the Partnership does not have sufficient cash reserves, its ability to pursue additional acquisition transactions will be adversely impacted. Furthermore, despite significant effort, the Partnership has thus far been unsuccessful in completing an acquisition transaction. There can be no assurance that the Partnership will be able to complete an accretive acquisition or otherwise find additional sources of working capital. If an acquisition transaction cannot be completed or if additional funds cannot be raised and cash flow is inadequate, the Partnership and/or Regional would be required to seek other alternatives which could include the sale of assets, closure of operations and/or protection under the U.S. bankruptcy laws," according to the Company's annual report for the year ended Dec. 31, 2012. CHINA TELETECH: Incurs $725,800 Net Loss in Second Quarter ---------------------------------------------------------- China Teletech Holding, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $725,876 on $9.97 million of sales for the three months ended June 30, 2013, as compared with net income of $971,670 on $8.04 million of sales for the same period last year. For the six months ended June 30, 2013, the Company reported a net loss of $664,010 on $19.07 million of sales, as compared with net income of $2.60 million on $11.07 million of sales for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $1.70 million in total assets, $2.09 million in total liabilities and a $395,637 total stockholders' deficit. WWC, P.C., in San Mateo, California, issued a "going concern" qualification on the consolidated financial statements for the quarter ended June 30, 2013. The independent auditors noted that the Company has incurred substantial losses, and has difficulty to pay the People's Republic of China 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. A copy of the Form 10-Q is available for free at: http://is.gd/QIwoJD 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. CIRTRAN CORP: Offering 211.8 Million Shares Under 2013 Plan ----------------------------------------------------------- Cirtran Corporation registered with the U.S. Securities and Exchange Commission 211,800,000 shares of common stock issuable under the Company's 2013 Incentive Plan. The proposed maximum aggregate offering price is $105,900. A copy of the Form S-8 registration statement is available at http://is.gd/bCIyC1 About Cirtran Corp West Valley City, Utah-based CirTran Corporation manufactures, markets, and distributes domestically and internationally an energy drink under a license, now in dispute, with Playboy Enterprises, Inc., or Playboy, and in the U.S., it provides a mix of high- and medium-volume turnkey manufacturing services and products using various high-tech applications for leading electronics OEMs in the communications, networking, peripherals, gaming, law enforcement, consumer products, telecommunications, automotive, medical, and semiconductor industries. Its services include pre-manufacturing, manufacturing, and post-manufacturing services. Its goal is to offer customers the significant competitive advantages that can be obtained from manufacture outsourcing. Cirtran Corp incurred a net loss of $1.78 million in 2012 as compared with a net loss of $7.04 million in 2011. The Company's balance sheet at June 30, 2013, showed $1.3 million in total assets, $24.6 million in total liabilities, and a stockholders' deficit of $23.3 million. 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 accumulated losses of $48,514,796 as of Dec. 31, 2012, which raises substantial doubt about its ability to continue as a going concern. COLDWATER PORTFOLIO: Plan Effective Date Occurred on August 21 -------------------------------------------------------------- Coldwater Portfolio Partners LLC informs the U.S. Bankruptcy Court for the Northern District of Indiana that the Effective Date of the Joint Chapter 11 Plan filed by the Debtor and U.S. Bank National Association, as Successor Trustee, occurred on Aug. 21, 2013. As reported in the Troubled Company Reporter on July 23, 2013, the Debtor and the lender won confirmation of their plan on July 17, 2013. At the same hearing, the bankruptcy judge also approved the adequacy of the explanatory disclosure statement. As reported in the TCR on June 5, 2013, the Joint Plan calls for unsecured creditors with $225,000 in claims to be paid 44 percent. Properties will be transferred to a liquidating trust, with sale proceeds earmarked for the lenders. If they wish, the lenders may buy the properties using debt rather than cash. About Coldwater Portfolio Coldwater Portfolio Partners LLC filed a voluntary Chapter 11 petition (Bankr. N.D. Ind. Case No. 12-31182) on April 4, 2012. CPP, a limited liability company organized under the laws of the state of Delaware, was formed in January 2006 with the purpose of owning and operating 38 commercial real estate properties. The majority of the properties are shadow retail centers located adjacent to Wal-Mart Supercenters throughout the Midwest and Southern States. The Debtor has developed relationships with nationwide retailers who operate local stores at the Shadow Retail Centers, including Dollar Tree, Game Stop, Sally Beauty, and Fashion Bug. The Shadow Retail Centers are particularly attractive commercial retail properties with business arising from the Wal-Mart customer traffic. Bankruptcy Judge Harry C. Dees, Jr., oversees the case. Forrest B. Lammiman, Esq., and David L. Kane, Esq., at Meltzer, Purtill & Stelle LLC, serve as the Debtor's counsel. Variant Capital Advisors LLC provides investment banking services to the Debtor. In its schedules, CPP disclosed $43,795,511 in assets and $73,808,077 in liabilities as of the Petition Date. CPP is a subsidiary of CPP Holdings LLC. Kenneth S. Klein, manager of CPP, signed the Chapter 11 petition. A related entity, Coldwater Portfolio Partners II, LLC, owns and operates nine shadow retail centers in the Midwest and Southern United States. Klein Retail Centers, Inc. is the parent of Coldwater II. COMMUNITY MEMORIAL: Committee Confirms Amended Liquidation Plan --------------------------------------------------------------- The Official Committee of Unsecured Creditors in the Chapter 11 case of Community Memorial Hospital won confirmation of its Corrected First Amended Plan of Liquidation for the Debtor. The Plan provides that on or prior to the Effective Date, a liquidating trust will be established for the purpose of liquidating the Debtor's remaining assets and distributing the proceeds thereof to creditors. Objections filed by the Centers for Medicare & Medicaid Services and the United States Department of Agriculture and the concurrences filed by the Equal Employment Opportunity Commission were resolved. In a separate filing, the Committee entered into a stipulation in connection with the confirmation of the First Amended Liquidation Plan. The stipulation was entered among: 1. Robert D. Mollhagen, Esq. -- rdmollhagen@varnumlaw.com -- at Varnum LLP on behalf of the Committee; 2. David M. Miller, Esq. -- dmiller@ermanteicher.com -- at Erman, Teicher, Miller, Zucker & Freedman, P.C., on behalf of McLaren Health Care Corporation, Northern Michigan Regional Hospital and Northern Michigan Hematology and Oncology; 3. David K. Foust, Esq. -- David.K.Foust@usdoj.gov -- on behalf of Daniel M. McDermott, U.S. Trustee; 4. William R. Morris, Esq. -- MorrisW@michigan.gov -- on behalf of the Michigan Department of Community Health and Licensing and Regulatory Affairs Health, Education & Family Services Division; 5. Julia A. Caroff, Esq. -- Julia.Caroff@usdoj.gov -- on behalf of the United States of America; 6. Kelly R. Cusick -- Cusick.kelly@pbgc.gov -- and -- efile@pbgc.gov -- on behalf of the Pension Benefit Guaranty Corporation; and 7. Dale Price, Esq. -- Dale.price@eeoc.gov -- on behalf of Equal Employment Opportunity Commission. The Plan As reported in the Troubled Company Reporter on July 31, 2013, the First Amended Chapter 11 Plan was filed as a complete amendment and restatement of the Plan of Liquidation filed by the Committee on April 5, 2013. Pursuant to the First Amended Plan, on or prior to the Effective Date, a liquidating trust will be established for the purpose of liquidating the Debtor's remaining assets and distributing the proceeds thereof to creditors. Citizens Bank (Class 3) will be deemed to have that portion of its claim that is a secured claim deemed satisfied and paid in full in exchange for (i) the Debtor's Lincoln Bridge property and Bay Street property, (ii) cash payment on the effective date of the Plan, and (iii) a note secured by accounts receivable. The USDA (Class 4) will have that portion of its claim that is a secured claim deemed satisfied and paid in full in exchange for cash payment on the Effective Date. Upon payment of higher ranked claims, each holder of general unsecured claims (Class 5) will receive its pro-rata share of the liquidating trust assets. A copy of the Corrected First Amended Plan of Liquidation is available at: http://bankrupt.com/misc/communitymemorial.doc777.pdf About Community Memorial Hospital Community Memorial Hospital, operator of the Cheboygan Memorial Hospital, filed for Chapter 11 bankruptcy (Bankr. E.D. Mich. Case No. 12-20666) on March 1, 2012. Judge Daniel S. Opperman oversees the case. Paul W. Linehan, Esq., and Shawn M. Riley, Esq., at McDonald Hopkins LLC, in Cleveland, Ohio; and Jayson Ruff, Esq., at McDonald Hopkins LLC, in Bloomfield Hills, Michigan, represent the Debtor as counsel. The Debtor's financial advisor is Conway Mackenzie Inc. The Debtor disclosed $23,085,273 in assets and $26,329,103 in liabilities. Opened in 1942, the Debtor is an independent, not-for-profit entity, organized exclusively for charitable, scientific and educational purposes, and holds tax exempt status in accordance with Section 501(c)(3) of the Internal Revenue Code. The Cheboygan Memorial Hospital is a 25-bed critical access hospital located in Cheboygan, Cheboygan County, a community on the Lake Huron coast. The Debtor has 395 employees. McLaren Health Care Corporation proposed to acquire substantially all of the Debtor's operating assets at its primary hospital campus, for $5,000,000, plus (2) all amounts required for the Debtor to cure and assume the assigned Assumed Contracts and Leases. Daniel M. McDermott, the U.S. Trustee for Region 9, appointed a five-member official committee of unsecured creditors in the Chapter 11 case of Community Memorial Hospital. Michael S. McElwee, Esq., at Varnum LP, in Grand Rapids, Michigan, represents the Unsecured Creditors' Committee as counsel. CONQUEST SANTA FE: Can Access Cash Collateral Until Oct. 31 ----------------------------------------------------------- The Bankruptcy Court authorized Conquest Santa Fe, L.L.C., to use cash collateral until Oct. 31, 2013. The Court found that the Debtor does not have sufficient available sources of working capital and financing to carry on the operation of its businesses without the use of Cash Collateral. As reported in the Troubled Company Reporter on Jan. 23, 2013, the Court authorized the Debtor to use cash collateral of LPP Mortgage, Ltd., to pay ordinary and necessary, postpetition expenses in the ordinary course of operating its business. The Lender may object to the further use of Cash Collateral, and file a motion with the Court asking for an immediate termination of the rights of the Debtor to use Cash Collateral. The Debtor will deposit all of the Cash Collateral into debtor in possession accounts. The liens and security interests held by Lender in the Cash Collateral will continue notwithstanding deposit in the Accounts or any other accounts. As adequate protection for the use by the Debtor of the Cash Collateral the Lender is granted a continuing, valid, and perfected lien and security interest in all property of the same kind and character of the Collateral acquired and owned by the Debtor on and after the Petition Date. A continued hearing on the authority to use cash collateral will be held on Oct. 23, 2013 at 1:15 p.m. A copy of the Cash Collateral Order is available for free at: http://bankrupt.com/misc/CONQUEST_Cashorder_813.pdf About Conquest Santa Fe Conquest Santa Fe, LLC, filed a Chapter 11 petition (Bankr. D. Ariz. Case No. 12-24937) in Tucson, Arizona, Nov. 16, 2012, estimating at least $10 million in assets and liabilities. Judge Eileen W. Hollowell presides over the case. Lowell E. Rothschild, Esq., Scott H. Gan, Esq., and Frederick J. Petersen, Esq., at Mesch, Clark & Rothschild, P.C., in Tucson, Arizona, serve as counsel to the Debtor. The Debtor owns and operates the 92-room Hyatt Place Hotel on Cerillos Road in Santa Fe, New Mexico, which opened for business on May 25, 2010. The Debtor filed its First Amended Chapter 11 Plan and Disclosure Statement on May 20, 2013. COOPER-BOOTH WHOLESALE: Dec. 18 Hearing on Use of Cash Collateral ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Pennsylvania, in documents filed Aug. 28, 2013, continued until Dec. 18 at 11 a.m., Cooper-Booth Wholesale Company, L.P., et al.'s request for use of cash collateral and to provide adequate protection. As reported in the Troubled Company Reporter on July 25, 2013, the Debtors obtained final authority from Judge Magdeline D. Coleman to use Cash Collateral of PNC Bank, National Association, and PNC Equipment Finance and Zurich American Insurance Company to pay only approved expenses from July 10, 2013, until the termination date, which will be the earlier of Aug. 31, or the date upon which an event of default occurs. As adequate protection, the Banks are granted replacement liens on and security interests in all of the Debtors' property and an administrative expense claim pursuant to Section 503(b)(1) of the Bankruptcy Code. Zurich is also granted the same forms of adequate protection as the Banks. About Cooper-Booth Wholesale 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. Blank Rome LLP represents the Debtor in negotiations with federal agencies concerning the seizure warrant. Cooper Booth estimated assets of at least $50 million and liabilities of at least $10 million as of the bankruptcy 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. Claudia Z. Springer, Esq., Derek J. Baker, Esq., Brian M. Schenker, Esq., at Reed Smith LLP, in Philadelphia, Pennsylvania, represent the Banks -- PNC Bank, National Association, and PNC Equipment Finance. Mort Branzburg, Esq., and Richard Beck, Esq., at Klehr Harrison Harvey Branzburg LLP, in Philadelphia, Pennsylvania, represent the Official Committee of Unsecured Creditors. Karen Lee Turner, Esq., at Eckert Seamans Cherin & Mellott, LLC, in Philadelphia, represents Zurich American Insurance Company. CORBIN PARK: U.S. Trustee Wants Case Converted or Dismissed ----------------------------------------------------------- Richard A. Wieland, the U.S. Trustee for Region 20, asks the Bankruptcy Court to enter an order converting the Chapter 11 case of Corbin Park, L.P., to a case under Chapter 7 or, in the alternative, dismissing the Debtor's case. The U.S. Trustee tells the Court that the Debtor has failed to file a monthly operating report for April 2013, May 2013, and June 2013, thus making it difficult for him to figure out if a recovery is feasible. The non-filing of the reports also precludes the U.S. Trustee from determining if other administrative expenses are being left unpaid. Moreover, the U.S. Trustee asserts the Debtor is delinquent on its payment of the statutory fees in the amount of $1,000 for the fourth quarter of 2012, first quarter of 2013, and second quarter of 2013 which includes penalties and interest. A hearing will be held on Sept. 19, 2013, at 1:30 p.m. to consider approval of the Motion. The. U.S. Trustee is represented by: Joseph A. DiPietro Trial Attorney Kan. Fed. Bar No. AR98004 301 North Main, Suite 1150 Wichita, Kansas 67202 316-269-6214 316-269-6182-FAX Joseph.A.DiPietro@usdoj.gov About Corbin Park Corbin Park, L.P., owns a large portion of a partially developed 97-acre shopping center known as "Corbin Park", which is located at the intersection of Metcalf Avenue and West 135th Street in Overland Park, Kansas. The Debtor acquired the Property from previous owners and developers State Line LLC and 135 Metcalf LLC. Invesco Ltd., investing at least $38 million, and Metcalf's in- house agent Cormac formed Corbin Park to purchase the Property. Bank of America agreed to advance up to $107 million in construction loans to Corbin Park. Based in Omaha, Nebraska, Corbin Park sought Chapter 11 protection (Bankr. D. Kan. Case No. 10-20014) on Jan. 5, 2010. Carl R. Clark, Esq., and Jeffrey A. Deines, Esq., at Lentz Clark Deines PA, represent the Debtor. The Debtor estimated $50 million to $100 million in assets and $10 million to $50 million in debts as of the Petition Date. COSTA BONITA: Has Until Oct. 25 to File Amended Plan ---------------------------------------------------- The Bankruptcy Court has given Costa Bonita Beach Resort Inc. until Oct. 25, 2013, to file an amended plan of reorganization and amended disclosure statement in order to finalize its settlement conversation with DF Servicing, LLC. On that date, the Debtor is also required to inform the Court on the status of their settlement. On Nov. 27, 2012, the Debtor objected to DF Servicing's proof of claim number 16-1 filed for $5,882,825, consisting of $3,746,419 for principal, $1,084,454 for pre-petition accrued interest, and $1,050,000 for liquidated damages. On Jan. 14, 2013, DF amended POC No. 16-1 through proof of claim number 16-2 for $5,219,362. On that same date, DF filed an opposition to the Debtor's objection. On April 19, 2013, Debtor filed its reply to the Opposition. A hearing on the matters was held on May 15, 2013, and DF Servicing was granted 21 days to submit evidence as to the reasonability of the legal fees claimed; the Debtor was also granted 21 days to respond. On June 25, 2013, the Debtor filed a motion informing the Court that it and DF Servicing were in the process of attempting to resolve and simplify the controversies between them, including the contested matter relative to POC No. 16-2 and objections thereto. As a result, the Debtor needed an extension of 60 days to file its amended plan of reorganization and amended disclosure statement. About Costa Bonita Costa Bonita Beach Resort, Inc., owns 50 apartments at the Costa Bonita Beach Resort in Culebra, Puerto Rico. It filed a bankruptcy petition under Chapter 11 of the Bankruptcy Code for the first time (Bankr. D.P.R. Case No. 09-00699) on Feb. 3, 2009. During this case, the Court entered an Opinion and Order finding that the Debtor satisfied all three (3) prongs of the Single Asset Real Estate, and, as such is a SARE case subject to 11 U.S.C. Sec. 362(d)(3). The Court also entered an Order modifying the automatic stay to allow creditor DEV, S.E., to continue in state court proceedings for the removal of the illegal easement and the restoration of DEV, S.E.'s land to its original condition by the Debtor. The first bankruptcy petition was dismissed on May 10, 2011 on the grounds that the Debtor failed to comply with an April 21, 2011 Order and the Debtor's failure to maintain adequate insurance. The case was subsequently closed on Oct. 11, 2011. Costa Bonita Beach Resort filed a second bankruptcy petition (Bankr. D.P.R. Case No. 12-00778) on Feb. 2, 2012, in Old San Juan, Puerto Rico. In the 2012 petition, the Debtor said assets are worth $15.1 million with debt totaling $14.2 million, including secured debt of $7.8 million. The apartments are valued at $9.6 million while a restaurant and some commercial spaces at the resort are valued at $3.67 million. The apartments serve as collateral for the $7.8 million while the commercial property is unencumbered. Bankruptcy Judge Enrique S. Lamoutte presides over the 2012 case. Charles Alfred Cuprill, Esq., serves as counsel in the 2012 case. The petition was signed by Carlos Escribano Miro, president. DAMES POINT: Creditor's Plan to Halt Marina Operations ------------------------------------------------------ The Hon. Jerry A. Frank of the U.S. Bankruptcy Court for the Middle District of Florida, in an amended notice, will convene a hearing on Sept. 20, 2013, at 11 a.m., to consider: 1) confirmation of creditor P&B Marina Development, LLC's Plan of Reorganization for Dames Point Holdings, LLC; and 2) final approval of the accompanying disclosure statement; 3) P&B Marina's motion for allowance of administrative expense. On Aug. 14, the Court entered an order conditionally approving the Disclosure Statement explaining P&B Marina's Plan dated Aug. 6, 2013. The proponent is an unsecured creditor and partial owner of Debtor. According to P&BMarina's Disclosure Statement, proponent will contribute substantial new equity capital to the Debtor, subordinate to the Debtor's creditors, and the Debtor's ownership structure will be correspondingly restructured. The Proponent will assume management of Post-Confirmation Debtor, cease current active marina operations, and use the new equity contributions to effectuate a deliberate, marketed sale of the Debtor's assets, allowing for flexibility to also assess the appropriate market conditions to effectuate a sale or multiple sales. A copy of the Disclosure Statement is available for free at http://bankrupt.com/misc/DAMES_POINT_ds.pdf About Dames Point Holdings, LLC P & B Marina Development, LLC filed an involuntary chapter 11 case against Jacksonville, Florida-based Dames Point Holdings, LLC (Bankr. M.D. Fla. Case No. 13-00501) on Jan. 29, 2013. Scott A. Underwood, Esq., at Fowler White Boggs, P.A. represented the petitioners. On March 12, 2013, the Court entered an order vacating the Feb. 28, 2013, order for relief in involuntary Chapter 11 case. The Court has consolidated the involuntary Chapter 11 case for all purposes with the voluntary case of William F. Snafnacker. Gust G. Sarris, Esq., represents the Debtor in its restructuring effort. The U.S. Trustee for Region 21 has informed the Bankruptcy Court that until further notice, it will not appoint a committee of creditors in the Chapter 11 case of Dames Point Holdings because of an insufficient number of unsecured creditors willing or able to serve on an unsecured creditors committee. DANCE NEW AMSTERDAM: Seeks Help Keeping Doors Open -------------------------------------------------- Jacqueline Palank, writing for The Wall Street Journal, reported that Dance New Amsterdam, a nonprofit New York dance education and performance center, said it will close its doors for good if it doesn't raise $50,000. According to the report, DNA Executive Director Catherine A. Peila told Bankruptcy Beat on Aug. 29 that the organization, which filed for Chapter 11 bankruptcy protection in May, is facing a cash crunch that has threatened its ability to continue operating and move forward with its restructuring. "We've haven't been able to garner the funds to have a very healthy and robust cash flow," Ms. Peila said, the report related. "We've had to tell the staff that we can't guarantee pay beyond Sunday [Sept. 1]." However, if DNA raises $50,000, Ms. Peila said the organization should be able to continue operating through December, the report related. The funding would also give DNA the breathing room it needs to work with its advisers?bankruptcy heavyweights Debevoise & Plimpton LLP and Alvarez & Marsal, which are helping DNA pro bono?on a restructuring plan. The nonprofit is accepting donations through its website. The fundraising challenge is the latest battle for a 29-year-old organization that has struggled for years to continue its mission of supporting New York dancers and other artists in the face of such challenges as Sept. 11, Hurricane Sandy, studio renovation delays and eviction threats, the report said. New York-based Dance New Amsterdam, Inc., sought protection under Chapter 11 of the Bankruptcy Code on May 27, 2013 (Bankr. S.D.N.Y. Case No.: 13-11734). The Debtor is represented by Irina Kushel, Esq., at LAW OFFICES OF IRINA KUSHEL, in New York. The Debtor listed estimated assets of $1,000,001 to $10,000,000 and estimated debts of $1,000,001 to $10,000,000. The Chapter 11 petition was signed by Catherine A. Peila, executive director. DEL PUEBLO: Gets More Time to File Plan Thru Sept. 9 ---------------------------------------------------- Judge Robert Kwan approved a fourth stipulation between 11850 Del Pueblo, LLC, and U.S. Bank National Association for an extension of the Debtor's plan filing deadline through Sept. 9 23, 2013 and plan confirmation deadline through Nov. 25, 2013. Jonathan S. Shenson, Esq. and Lauren N. Gans, Esq. of SHENSON LAW GROUP PC serve as attorneys to the Debtor. About 11850 Del Pueblo 11850 Del Pueblo, LLC, first filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 12-42819) in Los Angeles on Sept. 27, 2012. The Debtor, a Single Asset Real Estate under 11 Sec. 101(51B), owns property on 11850 Valley Boulevard, in El Monte, California. The property, according to the schedules filed together with the petition, is worth $9 million and secures a $17.5 million claim. The Court eventually dismissed the bankruptcy case on Oct. 12, 2012, due to the Debtor's failure to timely file certain necessary documents. The Debtor filed a second petition (Bankr. C.D. Cal. 12-44726) on Oct. 15. Bankruptcy Judge Robert N. Kwan presides over the case. Patrick Galentine is the duly appointed state court receiver and custodian for the Debtor. Craig A. Welin, Esq., and Reed S. Wadell, Esq., serve as bankruptcy counsel for the receiver. U.S. Bank National Association, as trustee, successor-in-interest to Bank of America, N.A., as Trustee, as successor by merger to LaSalle Bank National Association, as Trustee, for the Registered Holders of Deutsche Mortgage & Asset Receiving Corporation Mortgage Pass-Through Certificates, Series CD2006-CD3, is represented by Alan M. Feld, Esq., M. Reed Mercado, Esq., and Adam McNeile, Esq., at Sheppard, Mullin, Richter & Hampton LLP. DETROIT, MI: Union Asks Judge to Allow Questioning of Governor -------------------------------------------------------------- Detroit's largest labor union is urging the city's bankruptcy judge to allow its attorneys to question Gov. Rick Snyder and other top state officials under oath about decisions that led to the city's Chapter 9 filing. The state's lawyers filed a motion Friday asking the Court to quash the subpoenas, saying they subject the "state employees and officials to an unnecessary and undue burden." Chad Livengood, writing for The Detroit News, reported that on Aug. 30, the Attorney General's Office asked U.S. Bankruptcy Judge Steven Rhodes to protect Snyder and other state officials from having to testify under oath in depositions sought by the American Federation of State, County and Municipal Employees Council 25 and the United Auto Workers. On Sept. 1, AFSCME's attorney objected to the state's motion to quash the subpoenas, arguing the depositions are necessary to establish a timeline of events that precipitated the governor's March appointment of Detroit Emergency Manager Kevyn Orr and early discussions about whether to pursue bankruptcy, The Detroit News report said. The union is looking for records and facts that could bolster its claim the city negotiated in bad faith and is not eligible for bankruptcy protection, the report related. "AFSCME is not seeking to pursue a fishing expedition through discovery, but needs to preserve its rights to obtain any information that AFSCME deems relevant to its objection to eligibility," AFSCME attorney Sharon Levine wrote in a court filing. "Particularly in light of the expedited process pursuant to which the court will adjudicate the debtor's eligibility to file for Chapter 9 relief, AFSCME should not be forestalled in obtaining access to all relevant information to that determination." The Free Press relates that attorneys for the Michigan AFSCME Council 25, the largest city employee union, on Sunday filed documents in court, arguing that the ability to question top state officials is "both pertinent and critical to the factual questions surrounding the state's and the governor's decisions to authorize the Chapter 9 relief filing." The Free Press notes that AFSCME attorneys also want to schedule depositions for state Treasurer Andy Dillon, top Snyder adviser Richard Baird, Auditor General Thomas McTavish and Frederick Headen, legal adviser for the Michigan Department of Treasury. 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. A nine-member official committee of retired workers was appointed in the case. The Retirees' Committee is represented by Dentons US LLP. DIOCESE OF GALLUP, NM: To File Chapter 11 Amid Clergy Abuse Claims ------------------------------------------------------------------ The Associated Press reports that the Diocese of Gallup in New Mexico plans to seek Chapter 11 protection because of mounting clergy sex abuse legal claims. According to the AP, a statement by Bishop James Wall was read in parishes during Mass over the Labor Day weekend. According to the statement, Bishop Wall said the bankruptcy filing "is the most effective and thoughtful course to take in light of the claims from those who were abused." "Under Chapter 11, the Diocese will have the opportunity to present a plan of reorganization that provides for a fair and equitable way to compensate all those who suffered sexual abuse as children by workers for the church in our Diocese those who are currently known, those who haven't yet made the decision to come forward, and those who might come forward in the future," Bishop Wall added. The Gallup Diocese includes parishes in six counties in New Mexico, three counties in Arizona and seven American Indian reservations. According to the AP, there was no immediate word Tuesday on whether the diocese had filed the petition. The AP also notes Robert Pastor, a Phoenix attorney who has filed 13 clergy sex abuse lawsuits against the diocese, said he was surprised at the announcement since he hadn't received notice from diocesan attorneys about their intent to file the Chapter 11 petition. The Gallup Independent reports that Mr. Pastor's first lawsuit over abuse allegations is scheduled to go to trial in February 2014. The Gallup Diocese will become the ninth U.S. Roman Catholic diocese or archdiocese to seek bankruptcy protection since the clergy abuse scandal erupted in 2002. Two Catholic religious orders have also done so. The other dioceses or archdioceses to file for Chapter 11 are in Milwaukee; San Diego; Davenport, Iowa; Fairbanks, Alaska; Portland, Ore.; Spokane, Wash.; Tucson, Ariz.; and Wilmington, Del. CATHOLIC CHURCH BANKRUPTCY NEWS provides gavel-to-gavel coverage of those bankruptcy proceedings. DONNER METALS: Forfeits Interest in Bracemac-McLeod After Default ----------------------------------------------------------------- Donner Metals Ltd. on Sept. 3 disclosed that, as a result of an uncured default under the Metal Purchase Agreement dated July 12, 2011, entered into by Donner, Sandstorm Metals & Energy Ltd., Sandstorm Metals & Energy (Canada) Ltd. and Sandstorm Gold Ltd., Donner forfeited its interest in the Bracemac-McLeod mine and mine property area located in Matagami, Quebec and operated by a subsidiary of Glencore Xstrata plc. In summary, Donner, Sandstorm Metals and Sandstorm Gold and Glencore have agreed the following: -- Glencore has issued a 3% net smelter returns royalty ("NSR") to Sandstorm Metals on 100% of production from Bracemac- McLeod, in consideration for the interest in Bracemac-McLeod acquired by Sandstorm Metals from Donner and for an option to acquire certain Donner shares and warrants, as described below. -- Sandstorm Metals and Sandstorm Gold have relinquished their copper stream and their gold stream respectively. -- Sandstorm Metals will issue 1.33 million shares of Sandstorm Metals to Donner and Donner has provided each of Glencore and Sandstorm Metals with an irrevocable and unconditional release and discharge of any claim by Donner against Glencore or Sandstorm Metals and Donner agreed to an orderly execution of the agreement. -- Donner will receive a 1% NSR from Sandstorm Metals and Sandstorm Gold from any proceeds from the 3% NSR that exceed CDN$49 million. As previously disclosed on August 13, 2013, Donner failed to pay amounts owing under the Development and Operating Agreement dated as of July 12, 2011 entered into by and between Glencore and Donner with respect to Donner's share of the approved and budgeted monthly expenditures with respect to Bracemac-McLeod. By letter dated August 30, 2013, Sandstorm Metals advised Donner that, as of August 15, 2013, Donner is in default of the Metal Purchase Agreement and that there has occurred a Donner event of default under the Metal Purchase Agreement. As required by the Intercreditor Agreement dated as of July 12, 2011 entered into by Donner, Sandstorm Metals and Glencore, on August 30, 2013, Sandstorm Metals delivered to Glencore a notice of Donner's default under Metal Purchase Agreement. Donner does not have the cash available to pay the cash call that was payable on August 12, 2013. Each of the Development Agreement and the Metal Purchase Agreement sets out the respective rights and obligations of Glencore and Sandstorm Metals should there be a default or an occurrence of an event of default by Donner under the Development Agreement or the Metal Purchase Agreement, as the case may be. In both cases, the exercise by Glencore or Sandstorm Metals of its rights under the Development Agreement or the Metal Purchase Agreement, as the case may be, in the case of a default or the occurrence of an event of default by Donner, is subject to the provisions of the Intercreditor Agreement. The Intercreditor Agreement requires each of Glencore and Sandstorm Metals to deliver to the other a default notice in the event of the occurrence or existence of an event of default pursuant to their respective agreements. Under the Intercreditor Agreement, Donner and Sandstorm Metals have granted Glencore an irrevocable right and option to acquire Donner's interest in the Bracemac-McLeod mine and project and all rights or title related thereto each time Glencore receives a copy of a default notice. Upon, the earlier of: (i) Sandstorm Metals becoming aware that Glencore will not exercise its option, and (ii) the expiry of the period during which Glencore has the right to exercise its option (i.e., on the 15th day after the receipt of a default notice), Sandstorm Metals will have the right to cure any event of default of Donner under the Development Agreement. The Intercreditor Agreement has attached thereto the form of assignment and assumption agreement to be executed and delivered by Donner, Glencore and the assignee of Donner's interest in Bracemac-McLeod and all rights or title related thereto if, among other things, Glencore does not exercise its option and Sandstorm Metals chooses to purchase Donner's interest in Bracemac-McLeod and all rights or title related thereto. In order to memorialize the assumption by Sandstorm Metals of Donner's interest in Bracemac-McLeod and all rights or title related thereto, the Metal Purchase Agreement provides that Sandstorm Metals will execute and deliver the Assignment and Assumption Agreement and will then forward the same to Donner who shall immediately execute and deliver the Assignment and Assumption Agreement. The Metal Purchase Agreement further provides that if Donner fails to immediately execute and deliver the Assignment and Assumption Agreement, then Sandstorm Metals will have the full and restricted right to sign the Assignment and Assumption Agreement as attorney in fact for and on behalf of Donner. As a result of the interplay between the Metal Purchase Agreement, the Development Agreement and the Intercreditor Agreement, a default or an occurrence of an event of default by Donner can result in the forfeiture of Donner's interest in Bracemac-McLeod and all rights or title related thereto to either Glencore or Sandstorm for no or little consideration. On August 30, 2013, Donner and Sandstorm Metals entered into a settlement agreement which provides, among other things, for the manner in which Sandstorm Metals shall exercise its rights pursuant to the Metal Purchase Agreement, the irrevocable and unconditional mutual release and discharge by Donner, Glencore and Sandstorm Metals of each other from any claim, Donner's covenant not to commence any action or proceeding or to make any claims whatsoever against Sandstorm Metals or Sandstorm Metals Parent with respect to what was Donner's interest in Bracemac-McLeod and all rights or title related thereto and the consideration that shall be delivered by Sandstorm Metals to Donner in exchange therefor. See below for a further description of the Settlement Agreement. Immediately after the execution and delivery of the Settlement Agreement, Sandstorm Metals sold to Glencore what was Donner's interest in Bracemac-McLeod and all rights or title related thereto pursuant to an agreement of purchase and sale executed by Sandstorm Metals, Glencore and Donner. The consideration Sandstorm Metals received from Glencore under the Purchase and Sale Agreement includes a 3% NSR on production from certain mining leases on the terms and conditions set out in a royalty agreement between Glencore and Sandstorm Metals. In consideration of Donner's agreement to enter into a tripartite release which includes the release to Donner of any Bracemac- McLeod mine closure obligations, to agree to an orderly execution and delivery of the Assignment and Assumption Agreement, including its execution of the Settlement Agreement, of the Purchase and Sale Agreement, Sandstorm Metals has agreed that: (i) Sandstorm Metals will issue to Donner common shares having a value of CDN$2.0 million at an issue price per common share equal to the closing price of the common shares on the date prior to the issue date, subject to the rules and requirements of the TSX Venture Exchange from treasury, subject to a hold period equal to four months plus one day and (ii) Sandstorm Metals will agree to pay to Donner a certain amount of the proceeds to be received from Glencore under the Royalty Agreement pursuant to the Sandstorm Metals' New Royalty; in each case, all on and subject to the terms and conditions contained in the Settlement Agreement. In deciding to cooperate with the orderly execution and delivery of the Assignment and Assumption Agreement, the Board of Directors of Donner took into account, among other things, the recommendation of the Special Committee of independent directors formed to, amongst others, explore, analyze and assess the effect, desirability and consequences of a full range of strategic options, including, but not limited to, acquisitions, alliances with strategic partners, resale arrangements, merger or other business combination transactions involving the Corporation and a third party, the sale of all or substantially all of the Corporation's assets, the sale of the Corporation, the sale of some of the Corporation's assets, a recapitalization of the Corporation, proceeding in bankruptcy, reorganization or arrangement for the appointment of a receiver or trustee or any other proceeding under any law for the relief of creditors, each with the objective of enhancing value for all stakeholders of the Corporation. The Board of Directors of Donner also considered the impacts that the exercise of contractual recourses by either one or both of Glencore and Sandstorm Metal under its respective agreement would have had on the business, operations, prospects, financial condition of, or capital of Donner, including the very real possibility that Donner would lose its interest in Bracemac-McLeod without receiving any or little consideration therefor. The Board of Directors of Donner determined that, in the circumstances, it was in the best interest of Donner to cooperate with the orderly execution and delivery of the Assignment and Assumption Agreement as it was the sole scenario that provided some value to Donner and a viable possibility to develop a restructuring plan. Donner continues to hold interests in the remaining five Matagami joint ventures, where exploration continues. Going forward, Donner will evaluate various options to seek maximum value from those interests. Donner is also committed to manage its obligations to the Quebec lenders. The Settlement Agreement Pursuant to the Settlement Agreement, Donner has agreed to execute and deliver to, and with, Sandstorm Metals and/or Glencore, the Settlement Agreement, the Assignment and Assumption Agreement, the tripartite release and the Purchase and Sale Agreement. Sandstorm Metals and Donner agreed that effective upon August 30, 2013, without any further or other act or formality by either of them, and from then on, each of the Metal Purchase Agreement and the Security Agreement is deemed to be terminated and extinguished and the parties irrevocably and unconditionally released and discharged each other and their respective successors and assigns from any and all claims (with respect to Sandstorm Metals, including Sandstorm Metals Parent) which they have now or may have in the future against each other with respect to the Metal Purchase Agreement and the Security Agreement, other than claims involving fraud, bad faith, breach of fiduciary duty or willful misconduct. Donner also covenanted and agreed not to commence any action or proceeding or to make any claims whatsoever against Sandstorm Metals or Sandstorm Metals Parent with respect to the Affected Assets or the Participating Interest. Sandstorm Metals will issue to Donner 1.33 million common shares of Sandstorm Metals. Sandstorm Metals agreed, that from and after the date upon which Sandstorm Metals has received an aggregate of the net sum of CDN$49 million from the Sandstorm Metals' New Royalty under the Royalty Agreement, Sandstorm Metals shall pay to Donner, a 1% NSR royalty on sales of ore produced from the mining leases of Bracemac-McLeod that is subject to the Sandstorm Metals' New Royalty under the Royalty Agreement. The Sandstorm Metals To Donner Royalty shall only be payable and paid by Sandstorm Metals to Donner to the extent that, and as and when Sandstorm Metals shall receive royalty payments in respect of the Sandstorm Metals' New Royalty under the Royalty Agreement. In order to enable Donner to verify whether or not Sandstorm Metals has received an aggregate of the net sum of CDN$49 million from the Sandstorm Metals' New Royalty under the Royalty Agreement and to enable Donner to verify the receipt by Sandstorm Metals of royalty payments in respect of the Sandstorm Metals' New Royalty under the Royalty Agreement: (i) until the Recoupment Date, within 45 days after the end of each calendar year, Sandstorm Metals shall forward to Donner, all Royalty Statements (if any), received from Glencore during the said calendar year; and (ii) from and after the Recoupment Date, upon delivery of 10 business days advance notice, on a twice yearly basis, Donner or its authorized representatives shall be entitled, during normal business hours of Sandstorm Metals, in a manner that does not unreasonably interfere with Sandstorm Metal's business, to review and examine information Sandstorm Metals has obtained from Glencore under the Royalty Agreement. In the event that: (i) any action shall be commenced against Sandstorm Metals with respect to the transaction contemplated by the Settlement Agreement for which a final and unappealable judgment is obtained that is adverse to the interests of Sandstorm Metals; or (ii) Donner shall become subject to an insolvency event (as defined in the Settlement Agreement), regardless of whether or not the payments from Sandstorm Metals have commenced, then in each or either of such instances, the obligation of Sandstorm Metals to pay to Donner the Sandstorm Metals To Donner Royalty shall terminate and be extinguished. The Settlement also provides that Sandstorm Metals shall have the right to set off against any payments of the Sandstorm Metals To Donner Royalty any amounts that may become due and owing to Sandstorm Metals from Donner as a result of the indemnification provisions set out in the Settlement Agreement. Moreover if the applicable indemnification results from a breach by Donner of its representation and warranty with respect to its title in Donner's interest in Bracemac-McLeod and all rights or title related thereto, the obligation of Sandstorm Metals to pay to Donner the Sandstorm Metals To Donner Royalty shall terminate and be extinguished. Additionally, if Sandstorm Metals shall owe money to Glencore as a result of the indemnification provisions of the Purchase and Sale Agreement and Glencore is entitled to the recoupment of payments previously made to Sandstorm Metals by Glencore under the Royalty Agreement, then to the extent that Donner has received its pro rata share of any such payments that must be repaid by Sandstorm Metals to Glencore, Donner shall be obligated to repay to Sandstorm Metals the full pro rata share of such payments that Donner received. Glencore Option to Acquire Donner Shares and Warrants In connection with Glencore's issuance of a 3% NSR to Sandstorm Metals from Bracemac-McLeod, Glencore acquired from Sandstorm Metals an option to acquire 40,360,330 Donner common shares and 26,500,000 warrants exercisable for the same number of Donner common shares. The option is exercisable for $2 million and the warrants are exercisable for $0.10 per share. Assuming Glencore's exercise in full of its option and the warrants, Glencore would own approximately 19.5% of Donner's outstanding shares calculated on a partially diluted basis. About Donner Metals Donner Metals Ltd. -- http://www.donnermetals.com/-- is a Canada- based development and exploration company focused on base and precious metal projects in Quebec. Donner's flagship project is a partnership with Xstrata Canada Corporation in the Matagami Mining Camp covering both the existing development of a new mine and on- going exploration activities. The project is located in the Abitibi region of central Quebec and it is supported by Xstrata's existing mine infrastructure and an operating 2,950 tons per day mill. The Company is a fully vested partner with Xstrata in five joint venture areas covering 4,737 square kilometers. It also holds property interests in the Voisey's Bay area in Labrador and an ownership interest in Knight Resources Ltd. Donner's focus is on exploration for zinc, copper and nickel deposits. Effective July 19, 2013, Sandstorm Metals & Energy Ltd raised its interest to 15.81% from 5.429% in Donner Metals Ltd. DRYSHIPS INC: Amends Ocean Rig Senior Secured Facility Agreement ---------------------------------------------------------------- DryShips Inc. and through its majority owned subsidiary, Ocean Rig UDW Inc., of offshore deepwater drilling services, on Sept. 3 disclosed that Ocean Rig: $1.35 billion Bank Facility Ocean Rig disclosed that it has signed a supplemental agreement to amend certain provisions in its $1.35b Senior Secured Facility dated February 28, 2013. Under the terms of the agreement, the existing dividend restriction of up to 50% of preceding fiscal year net income will be amended to apply on a cumulative basis from July 1, 2013 onwards (50% of cumulative net income and 100% of cumulative losses) and include a carve-out to pay additional dividends up to the higher of (i) $150m and (ii) 5% of the Ocean Rig's net tangible assets. Furthermore, the minimum interest coverage ratio requirement will be 2.0 times until June 30, 2015 and the maximum leverage ratio will be 6.5 times until June 30, 2014, 6.0 times until December 31, 2014 and 5.5 times until June 30, 2015. George Economou, Chairman and Chief Executive Officer of Ocean Rig, commented: "We are pleased that our syndicate of commercial banks and export credit agencies agreed to our request to amend certain provisions in their facility. These amendments will harmonize our restricted payment provisions and certain financial covenants with those of our other secured term loan facilities and notes." Delivery of the Ocean Rig Mylos Ocean Rig disclosed that on August 20, 2013, it successfully took delivery of its newbuilding drillship the Ocean Rig Mylos. The Ocean Rig Mylos is the first in the series of three 7th Generation Ultra Deepwater Drillships, Ocean Rig expects to take delivery in 2013. The drillship is currently mobilizing to offshore Brazil and is expected to commence drilling operations under the 3-year drilling contract with Repsol Sinopec Brasil S.A. by November 2013. Order of 7th Generation Ultra Deepwater Drillship Ocean Rig announced that it has signed a contract to construct a 7th generation ultra deepwater drillship at Samsung Heavy Industries. This 7th Generation drillship is a sister ship to the three (Ocean Rig Skyros, Ocean Rig Athena, Ocean Rig Apollo) drillships currently under construction at Samsung, and is scheduled to be delivered to the Ocean Rig in December 2015. The project value price is estimated to be approximately US$600 million. Ocean Rig has at no additional consideration a fixed priced option, declarable by November 2013, for an additional drillship for delivery in the first quarter of 2016. George Economou, Chairman and Chief Executive Officer of Ocean Rig, commented: "We have taken advantage of our strong balance sheet and our long- term relationship with Samsung to order at a very attractive price an additional newbuild drillship, sistership to our existing 7th generation ultra deepwater drillships. We expect that our new drillship will be financed through a combination of available cash and debt to be secured prior to the delivery of the drillship in December 2015. With all of our 2013 newbuild drillships as well as our first 2015 newbuild drillship, the Ocean Rig Apollo, already contracted to investment grade counter-parties, we are setting the stage for moderate growth going forward. We believe that the ultra- deepwater ("UDW") drilling market for high quality assets will remain strong in the foreseeable future and are excited about the future employment prospects of our high quality homogeneous fleet." Contract Extension for the Eirik Raude Ocean Rig disclosed that Lukoil exercised its options for an additional two-well program under the previously announced Contract Award for Ocean Rig's semi-submersible drilling rig Eirik Raude. The revised drilling contract is for a firm six-well program and the rig is now expected to be available for employment the earliest by December 2014. About DryShips Inc. Headquartered in Athens, Greece, DryShips Inc. (NASDAQ: DRYS) is an owner of drybulk carriers and tankers that operate worldwide. Through its majority owned subsidiary, Ocean Rig UDW Inc., DryShips owns and operates 10 offshore ultra deepwater drilling units, comprising of 2 ultra deepwater semisubmersible drilling rigs and 8 ultra deepwater drillships, 3 of which remain to be delivered to Ocean Rig during 2013 and 1 is scheduled for delivery during 2015. DryShips owns a fleet of 46 drybulk carriers (including newbuildings), comprising of 12 Capesize, 28 Panamax, 2 Supramax and 4 Very Large Ore Carriers (VLOC) with a combined deadweight tonnage of about 5.1 million tons, and 10 tankers, comprising 4 Suezmax and 6 Aframax, with a combined deadweight tonnage of over 1.3 million tons. The Company reported a net loss of US$288.6 million on US$1.210 billion of revenues in 2012, compared with a net loss of US$47.3 million on US$1.078 billion of revenues in 2011. The Company's balance sheet at Dec. 31, 2012, showed US$8.878 billion in total assets, US$5.010 billion in total liabilities, and shareholders' equity of US$3.868 billion. Going Concern Doubt Ernst & Young (Hellas), in Athens, Greece, expressed substantial doubt about DryShips Inc.'s ability to continue as a going concern, citing the Company's working capital deficit of US$670 million at Dec. 31, 2012, and in addition, the non- compliance by the shipping segment with certain covenants of its loan agreements with banks. As of Dec. 31, 2012, the shipping segment was not in compliance with certain loan-to-value ratios contained in certain of its loan agreements. In addition, as of Dec. 31, 2012, the shipping segment was in breach of certain financial covenants, mainly the interest coverage ratio, contained in the Company's loan agreements relating to US$769,098,000 of the Company's debt. As a result of this non-compliance and of the cross default provisions contained in all bank loan agreements of the shipping segment and in accordance with guidance related to the classification of obligations that are callable by the creditor, the Company has classified all of its shipping segment's bank loans in breach amounting to US$941,339,000 as current at Dec. 31, 2012. EASTMAN KODAK: Completes Final Steps in Chapter 11 Restructuring ---------------------------------------------------------------- Antonio M. Perez, Kodak Chairman and Chief Executive Officer, on Sept. 3 announced the company's emergence from Chapter 11 as a reorganized company, following completion of the final steps in the restructuring process. "We have emerged as a technology company serving imaging for business markets -- including packaging, functional printing, graphic communications and professional services," said Mr. Perez. "We have been revitalized by our transformation and restructured to become a formidable competitor -- leaner, with a strong capital structure, a healthy balance sheet, and the industry's best technology." Kodak completed the final steps in its Chapter 11 restructuring, including the spin-off of its Personalized Imaging and Document Imaging businesses to Kodak Pension Plan, a longstanding pension plan of Kodak's U.K. subsidiary. The company also successfully closed on its agreement for $695 million in term exit financing, paid off its DIP lenders and second lien noteholders in full and completed its rights offerings, receiving approximately $406 million of new equity investments from participating unsecured creditors. "We are setting a trajectory for profitable growth," Mr. Perez said. "We have the right technology at the right time as printing markets increasingly transition to digital. Our broad portfolio of offset, hybrid and digital solutions enables customers to make the transition at their chosen pace using our breakthrough technology solutions. "We thank our employees for their extraordinary skills and commitment. We thank our suppliers for their dedication. We thank our customers and partners for their loyalty and for inspiring us to create disruptive technologies and breakthrough solutions." The company has filed notice of the effectiveness of its Plan of Reorganization with the U.S. Bankruptcy Court for the Southern District of New York. Upon the effectiveness of the Plan, all previously issued and outstanding shares of Kodak common stock were cancelled, as were all other previously issued and outstanding equity interests. Kodak issued shares of a new class of common stock to participants in the rights offerings and will issue additional shares of this new class of common stock to unsecured creditors as provided in the Plan of Reorganization. Kodak expects to make initial distributions on account of general unsecured claims by the end of September. Kodak will file a report on Form 8-K with the Securities and Exchange Commission including more details. About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. were not included in the filing and are expected to continue to operate as usual. Kodak, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. Kodak sought bankruptcy protection amid near-term liquidity issues brought about by steeper-than-expected declines in Kodak's historically profitable traditional businesses, and cash flow from the licensing and sale of intellectual property being delayed due to litigation tactics employed by a small number of infringing technology companies with strong balance sheets and an awareness of Kodak's liquidity challenges. In recent years, Kodak has been working to transform itself from a business primarily based on film and consumer photography to a smaller business with a digital growth strategy focused on the commercialization of proprietary digital imaging and printing technologies. Kodak has 8,900 patent and trademark registrations and applications in the United States, as well as 13,100 foreign patents and trademark registrations or pending registration in roughly 160 countries. Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtors. FTI Consulting, Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is the investment banker. Kurtzman Carson Consultants LLC is the claims agent. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel. Michael S. Stamer, Esq., David H. Botter, Esq., and Abid Qureshi, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the Unofficial Second Lien Noteholders Committee. The Retirees Committee has hired Haskell Slaughter Young & Rediker, LLC, and Arent Fox, LLC as Co-Counsel; Zolfo Cooper, LLC, as Bankruptcy Consultants and Financial Advisors; and the Segal Company, as Actuarial Advisors. Robert J. Stark, Esq., Andrew Dash, Esq., and Neal A. D'Amato, Esq., at Brown Rudnick LLP, represent Greywolf Capital Partners II; Greywolf Capital Overseas Master Fund; Richard Katz, Kenneth S. Grossman; and Paul Martin. Kodak completed the $527 million sale of digital-imaging technology on Feb. 1, 2013. Kodak intends to reorganize by focusing on the commercial printing business. At the end of April 2013, Kodak filed a proposed reorganization plan offering 85 percent of the stock to holders of the remaining $375 million in second-lien notes. The other 15 percent is for unsecured creditors with $2.7 billion in claims and retirees who have a $635 million claim from the loss of retirement benefits. EASTMAN KODAK: Seeks Court Approval to Reject EBP Contracts ----------------------------------------------------------- Eastman Kodak Co. asked U.S. Bankruptcy Judge Allan Gropper for green light to reject five contracts tied to its utility operations at the Eastman Business Park. The contracts have not been assumed and assigned to RED-Rochester LLC, the company that bought Kodak's utility operations at its manufacturing site. A list of the contracts is available for free at http://is.gd/esPVrw A court hearing to consider approval of Kodak's request is scheduled for Sept. 16. Objections are due by Sept. 9. About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. were not included in the filing and are expected to continue to operate as usual. Kodak, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. Kodak sought bankruptcy protection amid near-term liquidity issues brought about by steeper-than-expected declines in Kodak's historically profitable traditional businesses, and cash flow from the licensing and sale of intellectual property being delayed due to litigation tactics employed by a small number of infringing technology companies with strong balance sheets and an awareness of Kodak's liquidity challenges. In recent years, Kodak has been working to transform itself from a business primarily based on film and consumer photography to a smaller business with a digital growth strategy focused on the commercialization of proprietary digital imaging and printing technologies. Kodak has 8,900 patent and trademark registrations and applications in the United States, as well as 13,100 foreign patents and trademark registrations or pending registration in roughly 160 countries. Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtors. FTI Consulting, Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is the investment banker. Kurtzman Carson Consultants LLC is the claims agent. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel. Michael S. Stamer, Esq., David H. Botter, Esq., and Abid Qureshi, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the Unofficial Second Lien Noteholders Committee. The Retirees Committee has hired Haskell Slaughter Young & Rediker, LLC, and Arent Fox, LLC as Co-Counsel; Zolfo Cooper, LLC, as Bankruptcy Consultants and Financial Advisors; and the Segal Company, as Actuarial Advisors. Robert J. Stark, Esq., Andrew Dash, Esq., and Neal A. D'Amato, Esq., at Brown Rudnick LLP, represent Greywolf Capital Partners II; Greywolf Capital Overseas Master Fund; Richard Katz, Kenneth S. Grossman; and Paul Martin. Kodak completed the $527 million sale of digital-imaging technology on Feb. 1, 2013. Kodak intends to reorganize by focusing on the commercial printing business. At the end of April 2013, Kodak filed a proposed reorganization plan offering 85 percent of the stock to holders of the remaining $375 million in second-lien notes. The other 15 percent is for unsecured creditors with $2.7 billion in claims and retirees who have a $635 million claim from the loss of retirement benefits. EASTMAN KODAK: Court Approves Cancellation of Outstanding Stock --------------------------------------------------------------- The Bankruptcy Court entered an order confirming the Joint Chapter 11 Plan of Reorganization of Eastman Kodak Company and its debtor affiliates, thereby approving the cancellation of all outstanding shares of stock thereunder. Existing stock will be cancelled as of the date that the Plan becomes effective. Until then, it may continue to be traded as Kodak does not control the market. The Debtors filed the Plan and the accompanying Disclosure Statement on April 30, 2013, with the United States Bankruptcy Court for the Southern District of New York. The Disclosure Statement was approved by the Bankruptcy Court on June 26, 2013, as containing adequate information for creditors to vote on the Plan. Kodak has filed various amendments and supplements to the Plan. Voting on the Plan closed on Aug. 9, 2013, with acceptance from all classes of voting creditors. About Eastman Kodak Rochester, New York-based Eastman Kodak Company and its U.S. subsidiaries on Jan. 19, 2012, filed voluntarily Chapter 11 petitions (Bankr. S.D.N.Y. Lead Case No. 12-10202) in Manhattan. Subsidiaries outside of the U.S. were not included in the filing and are expected to continue to operate as usual. Kodak, founded in 1880 by George Eastman, was once the world's leading producer of film and cameras. Kodak sought bankruptcy protection amid near-term liquidity issues brought about by steeper-than-expected declines in Kodak's historically profitable traditional businesses, and cash flow from the licensing and sale of intellectual property being delayed due to litigation tactics employed by a small number of infringing technology companies with strong balance sheets and an awareness of Kodak's liquidity challenges. In recent years, Kodak has been working to transform itself from a business primarily based on film and consumer photography to a smaller business with a digital growth strategy focused on the commercialization of proprietary digital imaging and printing technologies. Kodak has 8,900 patent and trademark registrations and applications in the United States, as well as 13,100 foreign patents and trademark registrations or pending registration in roughly 160 countries. Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt & Taylor, LLP, serve as counsel to the Debtors. FTI Consulting, Inc., is the restructuring advisor. Lazard Freres & Co. LLC, is the investment banker. Kurtzman Carson Consultants LLC is the claims agent. The Official Committee of Unsecured Creditors has tapped Milbank, Tweed, Hadley & McCloy LLP, as its bankruptcy counsel. Michael S. Stamer, Esq., David H. Botter, Esq., and Abid Qureshi, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the Unofficial Second Lien Noteholders Committee. The Retirees Committee has hired Haskell Slaughter Young & Rediker, LLC, and Arent Fox, LLC as Co-Counsel; Zolfo Cooper, LLC, as Bankruptcy Consultants and Financial Advisors; and the Segal Company, as Actuarial Advisors. Robert J. Stark, Esq., Andrew Dash, Esq., and Neal A. D'Amato, Esq., at Brown Rudnick LLP, represent Greywolf Capital Partners II; Greywolf Capital Overseas Master Fund; Richard Katz, Kenneth S. Grossman; and Paul Martin. Kodak completed the $527 million sale of digital-imaging technology on Feb. 1, 2013. Kodak intends to reorganize by focusing on the commercial printing business. At the end of April 2013, Kodak filed a proposed reorganization plan offering 85 percent of the stock to holders of the remaining $375 million in second-lien notes. The other 15 percent is for unsecured creditors with $2.7 billion in claims and retirees who have a $635 million claim from the loss of retirement benefits. ELEPHANT TALK: Amends Report on Issuance of 1-Mil. Warrants ----------------------------------------------------------- Elephant Talk Communications Corp. disclosed on Aug. 22, 2013, that it issued a warrant to Bernard Moncarey to purchase 1,000,000 shares of restricted common stock. The Company disclosed that the Warrant is exercisable at any time on or after Feb. 17, 2013, at a price of $0.887 per share for a term of five years. The Company filed an amendment to the report to correct its disclosure about the exercise date of the Warrant. The Warrant is exercisable at any time on or after Feb. 17, 2014. About Elephant Talk Lutz, Fla.-based Elephant Talk Communications, Inc. (OTC BB: ETAK) -- http://www.elephanttalk.com/-- is an international provider of business software and services to the telecommunications and financial services industry. Elephant Talk disclosed a net loss attributable to the Company of $23.13 million in 2012, a net loss attributable to the Company of $25.31 million in 2011 and a net loss attributable to the Company of $92.48 million in 2010. The Company's balance sheet at March 31, 2013, showed $34.47 million in total assets, $18.29 million in total liabilities, and $16.18 million in total stockholders' equity. BDO USA, 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 has suffered recurring losses from operations has an accumulated deficit of $203.3 million and continues to generate negative cash flows that raise substantial doubt about its ability to continue as a going concern. ELBIT IMAGING: Annual Shareholders Meeting Set on Sept. 30 ---------------------------------------------------------- Elbit Imaging Ltd. has scheduled its 2013 annual shareholders meeting on Sept. 30, 2013, at 11:00 a.m. (Israel time), at the offices of the Company, located at 5 Kinneret Street, Bnei Brak, Israel. The record date for the meeting is Sept. 1, 2013. Proxy statements describing the proposals on the agenda and proxy cards for use by shareholders that cannot attend the meeting in person will be sent by mail, on or about Sept. 3, 2013, to the Company's shareholders of record and to shareholders that hold shares registered with the American Stock Transfer & Trust Company. The Company will also furnish the proxy statement to the U.S. Securities and Exchange Commission on Form 6-K. The agenda of the meeting is as follows: 1. To re-elect the following members of the Company's Board of Directors: Mordechay Zisser, Shimon Yitzhaki, David Rubner, Moshe Lion and Shmuel Peretz; 2. To re-elect Zvi Tropp as one of the Company's external directors; 3. To re-appoint Brightman Almagor Zohar & Co., a member of Deloitte, as the Company's independent auditors until the next annual general meeting of shareholders; and 4. To discuss the Company's financial statements for the year ended Dec. 31, 2012. Items 1 and 3 require the approval of a simple majority of the shares voted on the matter. Item 2 requires the approval of a majority of the shares voted on the matter, provided that such majority includes a majority of shareholders who are neither "controlling shareholders" nor have a "personal interest" merely as a result of relationship with the controlling shareholder; or the total number of shares voted against the resolution by the disinterested shareholders does not exceed 2 percent of the company's voting power. Item 4 will not require a vote of the shareholders. About Elbit Imaging Tel-Aviv, Israel-based Elbit Imaging Ltd. (TASE, NASDAQ: EMITF) hold investments in real estate and medical companies. The Company, through its subsidiaries, also develops shopping and entertainment centers in Central Europe and invests in and manages hotels. Elbit Imaging disclosed a loss of NIS455.50 million on NIS671.08 million of total revenues for the year ended Dec. 31, 2012, as compared with a loss of NIS247.02 million on NIS586.90 million of total revenues for the year ended Dec. 31, 2011. The Company's balance sheet at Dec. 31, 2012, showed NIS7.09 billion in total assets, NIS5.67 billion in total liabilities, NIS309.60 million in equity to holders of the Company and NIS1.11 billion in noncontrolling interest. Brightman Almagor Zohar & Co., in Tel-Aviv, Israel, expressed substantial doubt about Elbit Imaging's ability to continue as a going concern following the financial results for the year ended Dec. 31, 2012. The Certified Public Accountants noted that in the period commencing Feb. 1, 2013, through Feb. 1, 2014, the Company is to repay its debenture holders NIS 599 million (principal and interest). "Said amount includes NIS 82 million originally payable on Feb. 21, 2013, that its repayment was suspended following a resolution of the Company's Board of Directors. The Company's Board also resolved to suspend any interest payments relating to all the Company's debentures. In addition, as of Dec. 31, 2012, the Company failed to comply with certain financial covenants relating to bank loans in the total amount as of such date of NIS 290 million. ELITE PHARMACEUTICALS: Inks Master Services Pact with Camargo ------------------------------------------------------------- Elite Pharmaceuticals, Inc., executed a Master Services Agreement with Camargo Pharmaceutical Services, LLC, pursuant to which Camargo will provide various services to assist Elite with the U.S. Food and Drug Administration 505(b)(2) regulatory pathway for the products utilizing the Company's abuse resistant technology. Elite is scheduled to begin clinical studies with the initial product later this year. A 505(b)(2) is a new drug application that contains full safety and effectiveness reports, but allows at least some of the information required for approval to come from studies not conducted by or for the applicant. This method is a holistic approach for developing products that offer differentiated benefits and gains approval for new drugs in a fraction of the time and cost required by traditional paths. Conducting clinical trials does not assure a successful outcome or FDA approval. Camargo is a full-service drug development partner specializing in the 505(b)(2) process -- an approach for developing products that offer differentiated benefits. Camargo is capable of managing every facet of the plan throughout the development continuum, from feasibility assessments, formulation and testing the drug product, to conducting preclinical and clinical studies, to final submission. About Elite Pharmaceuticals Northvale, New Jersey-based Elite Pharmaceuticals, Inc., is a specialty pharmaceutical company principally engaged in the development and manufacture of oral, controlled-release products, using proprietary technology and the development and manufacture of generic pharmaceuticals. The Company has one product, Phentermine 37.5mg tablets, currently being sold commercially. Elite Pharmaceuticals reported net income attributable to common shareholders of $1.48 million on $3.40 million of total revenues for the year ended March 31, 2013, as compared with a net loss attributable to common shareholders of $15.05 million on $2.42 million of total revenues for the year ended March 31, 2012. As of March 31, 2013, the Company had $11.12 million in total assets, $19.79 million in total liabilities and a $8.67 million total stockholders' deficit. Demetrius Berkower LLC, in Wayne, 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 has experienced significant losses resulting in a working capital deficiency and shareholders' deficit. These conditions raise substantial doubt about its ability to continue as a going concern. ENNIS COMMERCIAL: Plan Administrator Hires Katten Muchin -------------------------------------------------------- David P. Stapleton of the Stapleton Group, solely in his capacity as plan administrator for Ben Ennis, seeks authority from the U.S. Bankruptcy Court for the Eastern District of California to employ Katten Muchin Rosenman LLP as special real estate and corporate counsel, nunc pro tunc to July 13, 2013. Katten's attorneys have been working with the Plan Administrator and his team since July 13, 2013, to review the Debtor's assets and perform due diligence in preparation for the role of Plan Administrator. The primary attorneys who will be working on this matter, and who will be paid based on their hourly rates are: Professional Position Rate ------------ -------- ---- William B. Freeman Partner $700 Douglas W. Pyle Associate $455 Jennifer K. Brooks Associate $410 The firm will also be reimbursed for its out-of-pocket expenses. Mr. Freeman assures the Court that Katten does not hold or represent any interest materially adverse to the interests of the estate or any class of creditors or equity security holders. The Court will convene a hearing on the application on September 11, 2013, at 1:30 p.m. The proposed special real estate and corporate counsel may be reached at: William B. Freeman, Esq. Jennifer F. Brooks, Esq. KATTEN MUCHIN ROSENMAN LLP 515 S. Flower Street, Suite 1000 Los Angeles, CA 90071-2212 Telephone: 213-788-7445 Facsimile: 213-788-7380 E-mail: bill.freeman@kattenlaw.com jennifer.brooks@kattenlaw.com About Ennis Commercial Porterville, California-based Ennis Commercial Properties, LLC's business consists of acquiring raw land and building commercial developments. The Company then either operates or sells the commercial buildings comprising the commercial development. ECP is owned by Ben Ennis, Brian Ennis and Pamela Ennis, in equal shares. On Sept. 20, 2010, Pam Ennis and Brian Ennis transferred all of their ownership interests in ECP to Ben Ennis. ECP filed for Chapter 11 bankruptcy protection (Bankr. E.D. Calif. Case No. 10-12709) on March 16, 2010. Peter L. Fear, Esq., and Gabriel J. Waddell, Esq., at the Law Offices of Peter L. Fear, in Fresno, Calif., represent ECP as counsel. No creditors committee has been formed in the case. In its schedules, the Debtor disclosed $40,878,319 in assets and $43,922,485 in liabilities. Ben Ennis filed a voluntary petition under Chapter 11 (Bankr. E.D. Calif. Case No. 10-62315) on Oct. 25, 2010. On May 25, 2011, Terence Long was appointed as Chapter 11 Trustee in the Benn Ennis bankruptcy. Consequently, the Chapter 11 Trustee stands in the shoes of Ben Ennis, and holds all of the membership interests in ECP and controls it accordingly. Justin D. Harris, Esq., at Motschiedler, Michaelides, Wishon, Brewer & Ryan, LLP, in Fresno, represents the Chapter 11 Trustee as counsel. ESP RESOURCES: Amends Second Quarter Form 10-Q ---------------------------------------------- ESP Resouces, Inc., has amended its quarterly report on Form 10-Q for the period ended June 30, 2013, as filed with the U.S. Securities and Exchange Commission on Aug. 19, 2013, to furnish the Interactive Data files as Exhibit 101, in accordance with Rule 405 of Regulation S-T. No other changes have been made to the Original 10-Q. A copy of the amended Form 10-Q is available for free at http://is.gd/ZGOxYL About ESP Resources 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 June 30, 2013, showed $6.06 million in total assets, $9.01 million in total liabilities and a $2.94 million total stockholders' deficit. FAIRMONT GENERAL: Files for Chapter 11 in West Virginia ------------------------------------------------------- Fairmont General Hospital sought Chapter 11 bankruptcy protection (Bankr. N.D. W.Va. Case No. 13-_____) Tuesday afternoon, listing between $10 million and $50 million in both assets and debts. Bob Herman, writing for Becker's Hospital Review, reports that Fairmont General Hospital filed for bankruptcy as it looks to partner with another hospital or health system. "We're moving forward to take this action now because we know it is necessary to make us financially and operationally stronger and to pave a smoother transition when we do find the right partner," Robert Marquardt, president and CEO of Fairmont General Hospital, said in a news release, according to the report. "During our search, our financial advisers and nearly every potential partner has identified that this step is necessary to the successful completion of a financially strong strategic alliance." The report notes hospital officials expect to restructure long- term debt and union contracts to "bring costs in line with local, regional and national norms in the healthcare sector." According to the report, executives and board members of the 207- bed independent hospital said the bankruptcy process should be complete within the next 12 months. The report says employees and vendors are still expected to get paid. FLETCHER INTERNATIONAL: Trustee Revises Goldin Compensation ----------------------------------------------------------- The Hon. Robert E. Gerber of the U.S. Bankruptcy Court for the Southern District of New York approved an amended and restated engagement letter between Richard J. Davis, the trustee appointed in the Chapter 11 case of Fletcher International Ltd., and Goldin Associates, LLC, dated as of June 1, 2013. As reported in the Troubled Company Reporter on Aug. 1, 2013, the Court entered a Nov. 12, 2012 order authorizing the employment of Goldin as special consultant to the trustee. Pursuant to the original engagement letter dated Oct. 5, 2012, the trustee agreed to compensate Goldin at the firm's regular hourly rates less a 10% discount and to reimburse Goldin for all reasonable and necessary expenses. Due to liquidity constraints on the Debtor's estate, the Chapter 11 trustee is unable to continue paying Goldin on a current basis for its work under the compensation structure approved in the original engagement letter. In this relation, the Chapter 11 trustee trustee and Goldin have agreed to modify the compensation structure. Pursuant to the revised engagement letter, Goldin will be compensated for its services in this manner: a) Goldin will continue to keep contemporaneous records of the services Goldin has performed during the term of Goldin's engagement at the rates set forth in the revised engagement letter. b) Goldin will receive a monthly payment equal to the lesser of (i) $125,000 and (ii) the hourly fees for the applicable month and will be reimbursed for all reasonable and necessary expenses. c) Goldin may apply to the Court for additional compensation equal to the amount of any Hourly Fees billed since June 1, 2013, plus 10 percent less any monthly payments already received. The revised engagement letter will not affect Goldin's right to any fees or expenses from the period beginning Oct. 5, 2012, through and including May 31, 2013. About Fletcher International Fletcher International, Ltd., filed a bare-bones Chapter 11 petition (Bankr. S.D.N.Y. Case No. 12-12796) on June 29, 2012, in Manhattan. The Bermuda exempted company estimated assets and debts of $10 million to $50 million. The bankruptcy documents were signed by its president and director, Floyd Saunders. David R. Hurst, Esq., at Young Conaway Stargatt & Taylor, LLP, in New York, serves as counsel and Appleby (Bermuda) Limited serves as special Bermuda counsel. The Debtor disclosed $52,163,709 in assets and $22,997,848 in liabilities as of the Chapter 11 filing. Fletcher International Ltd. is managed by the investment firm of Alphonse "Buddy" Fletcher Jr. Fletcher Asset Management was founded in 1991. During its initial four years, FAM operated as a broker dealer trading various debt and equity securities and making long-term equity investments. Then, in 1995, FAM began creating and managing a family of private investment funds. The Debtor is a master fund in the Fletcher Fund structure. As a master fund, it engages in proprietary trading of various financial instruments, including complex, long-term, illiquid investments. The Debtor is directly owned by Fletcher Income Arbitrage Fund and Fletcher International Inc., which own roughly 83% and 17% of the Debtor's common shares, respectively. Arbitrage's direct parent entities are Fletcher Fixed Income Alpha Fund and FIA Leveraged Fund, both of which are incorporated in the Cayman Islands and are subject to liquidation proceedings in that jurisdiction, and which own roughly 76% and 22% of Arbitrage's common stock, respectively. The Debtor currently has a single subsidiary, The Aesop Fund Ltd. After filing for Chapter 11 protection, Fletcher immediately started a lawsuit in bankruptcy court to stop the involuntary bankruptcy in Bermuda. Judge Gerber at least temporarily halted liquidators appointed in the Cayman Islands from moving ahead with proceedings in Bermuda. The lawsuit to halt the Bermuda liquidation is Fletcher International Ltd. v. Fletcher Income Arbitrage Fund, 12-01740, in the same court. Richard J. Davis, Chapter 11 trustee appointed in the case, has hired Michael Luskin, Esq. at Luskin, Stern & Eisler LLP as his counsel. FOURTH QUARTER PROPERTIES: Seeks Plan Exclusivity Until Oct. 16 --------------------------------------------------------------- In an amendment to an exclusivity extension motion filed July 3, 2013, Fourth Quarter Properties XXXVIII, LLC, asks the U.S. Bankruptcy Court for the Northern District of Georgia to extend the Debtor's exclusive periods to file and obtain acceptances of a plan until Oct. 16, 2013, and 2013, respectively. The Court is scheduled to consider the Exclusivity Motion on Sept. 13, 2013. According to papers filed with the Court on August 30, after the filing of the Exclusivity Motion, the Debtor reached a settlement in principle in this case with its secured lenders, Cornerstone Commercial Mortgages, LLC, and CharterBank. The Court is scheduled to consider the Settlement Motion on Sept. 13, 2013. "Because the Court will not consider the Settlement Motion until after Sept. 3, 2013 date for which the Debtor seeks an extension of the exclusivity period for filing a plan, the Debtor out of an abundance of caution is compelled to amend its Exclusivity Motion to seek an extension of the exclusive period for filing a plan to a date which is after the date on which the Court will consider the Settlement Motion," the Debtor said. As reported in the TCR on July 10, 2013, the Debtor asked that the Court extend its exclusive periods to file and solicit acceptances of a plan for 60 days, through and including Sept. 3, 2013, and Nov. 2, respectively. 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. FREESEAS INC: Issues 1.3-Mil. Add'l Settlement Shares to Hanover ---------------------------------------------------------------- FreeSeas Inc. issued and delivered to Hanover Holdings I, LLC, 1,350,000 additional settlement shares pursuant to the terms of the Settlement Agreement approved by the Supreme Court of the State of New York, County of New York, on June 25, 2013, in the matter entitled Hanover Holdings I, LLC v. FreeSeas Inc., Case No. 651950/2013. Hanover commenced the Action against the Company on May 31, 2013, to recover an aggregate of $5,331,011 of past-due accounts payable of the Company, plus fees and costs. The Order provides for the full and final settlement of the Claim and the Action. Pursuant to the terms of the Settlement Agreement approved by the Order, on June 26, 2013, the Company issued and delivered to Hanover 890,000 shares of the Company's common stock, $0.001 par value, and between July 2, 2013, and Aug. 22, 2013, the Company issued and delivered to Hanover an aggregate of 18,008,000 additional settlement shares. A copy of the Form 6-K is available for free at: http://is.gd/spuDV3 About FreeSeas Inc. Headquartered in Athens, Greece, FreeSeas Inc., formerly known as Adventure Holdings S.A., was incorporated in the Marshall Islands on April 23, 2004, for the purpose of being the ultimate holding company of ship-owning companies. The management of FreeSeas' vessels is performed by Free Bulkers S.A., a Marshall Islands company that is controlled by Ion G. Varouxakis, the Company's Chairman, President and CEO, and one of the Company's principal shareholders. The Company's fleet consists of six Handysize vessels and one Handymax vessel that carry a variety of drybulk commodities, including iron ore, grain and coal, which are referred to as "major bulks," as well as bauxite, phosphate, fertilizers, steel products, cement, sugar and rice, or "minor bulks." As of Oct. 12, 2012, the aggregate dwt of the Company's operational fleet is approximately 197,200 dwt and the average age of its fleet is 15 years. Freeseas disclosed a net loss of US$30.88 million in 2012, a net loss of US$88.19 million in 2011, and a net loss of US$21.82 million in 2010. The Company's balance sheet at Dec. 31, 2012, showed US$114.35 million in total assets, $106.55 million in total liabilities and US$7.80 million in total shareholders' equity. RBSM LLP, in New York, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has incurred recurring operating losses and has a working capital deficiency. In addition, the Company has failed to meet scheduled payment obligations under its loan facilities and has not complied with certain covenants included in its loan agreements. It has also failed to make required payments to Deutsche Bank Nederland as agreed to in its Sept. 7, 2012, amended and restated facility agreement and received notices of default from First Business Bank. Furthermore, the vast majority of the Company's assets are considered to be highly illiquid and if the Company were forced to liquidate, the amount realized by the Company could be substantially lower that the carrying value of these assets. These conditions, among others, raise substantial doubt about the Company's ability to continue as a going concern. FURNITURE BRANDS: To Voluntarily Delist Common Stock From NYSE -------------------------------------------------------------- Furniture Brands International said it will voluntarily delist its common stock from The New York Stock Exchange and transfer quotation of its common stock to the OTCQB Marketplace. The Company's decision to voluntarily delist the common stock and transfer to the OTCQB was driven by a number of factors, including its non-compliance with the NYSE's market capitalization and stockholders' equity requirements. The Board of Directors approved the voluntary transfer of listing of the Company's common stock and the related Preferred Stock Purchase Rights from the New York Stock Exchange to the OTCQB Marketplace. The Company expects to file an application on Form 25 to notify the U.S. Securities and Exchange Commission of its withdrawal of its common stock from listing on the NYSE. The Company expects that the last day of trading of its common stock on the NYSE will be on or about Aug. 27, 2013, and that the next trading day will be the first day of quotation on the OTCQB. The Company will issue a subsequent press release confirming the first trading date on the OTCQB and the trading symbol for the OTCQB before the transfer occurs. Following the transfer, the company will continue to file the same periodic reports and other information it currently files with the SEC. On July 10, 2013, the company received a notice from the NYSE that it had fallen below the NYSE's continued listing criteria requiring listed companies to maintain an average market capitalization of not less than $50 million over a consecutive 30 trading-day period and total stockholders' equity of not less than $50 million. On July 15, 2013, the company announced its intention, in accordance with NYSE rules, to submit a business plan to the NYSE within 45 days from the notice date to attempt to demonstrate its ability to cure the non-compliance within an 18- month period. Subsequently, the Company's absolute market capitalization has fallen below $15 million. If the company's average market capitalization for 30 trading-days is below $15 million, the company will be subject to initiation of delisting procedures by the NYSE without regard to the submission of a business plan for attempting to cure non-compliance. As a result, and in light of its decision to voluntarily delist, the Company has informed the NYSE that it will not be submitting a business plan. The Company made the decision to voluntarily delist from the NYSE because it believes it will not be able to comply with the NYSE's continued listing criteria. The company believes that this voluntary transfer to the OTCQB will provide greater certainty and assist in an orderly transition. About Furniture Brands Furniture Brands International (NYSE: FBN) is a world leader in designing, manufacturing, sourcing and retailing home furnishings. Furniture Brands markets products through a wide range of channels, including company owned Thomasville retail stores and through interior designers, multi-line/ independent retailers and mass merchant stores. Furniture Brands serves its customers through some of the best known and most respected brands in the furniture industry, including Thomasville, Broyhill, Lane, Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith and LaBarge. To learn more about the company, visit www.furniturebrands.com. GORDON PROPERTIES: Stites & Harbison Wants Ch.7 Case Conversion --------------------------------------------------------------- Robert E. Scully, Esq. -- rscully@stites.com -- at Stites & Harbison, PLLC, last month filed papers asking the Bankruptcy Court to convert the Chapter 11 case of Gordon Properties, LLC, to one under Chapter 7 of the Bankruptcy Code, or, in the alternative, appoint a Chapter 11 trustee. Stites & Harbison filed a proof of claim for a $237,755 unsecured claim representing unpaid legal fees for representation of the Debtor in Gordon Properties, LLC v. First Owners' Association of Forty Six Hundred Condominium, Inc. According to Stites & Harbison, the Debtor, among other things: -- has made no effort during the last four years to file any plan of reorganization; -- is administratively insolvent; and -- has no ability to rehabilitate. About Gordon Properties Alexandria, Va.-based Gordon Properties, LLC, owns 40 condominium units in a high-rise apartment building with both residential and commercial units and two commercial units adjacent to the high- rise building. Gordon Properties' ownership of these condos represents about a 20% interest in the Forty Six Hundred Condominium project -- http://foa4600.org/-- in Alexandria. Gordon Properties also owns one of the adjacent commercial units, a restaurant. Gordon Properties sought Chapter 11 protection (Bankr. E.D. Va. Case No. 09-18086) on Oct. 2, 2009, and is represented by Donald F. King, Esq., at Odin, Feldman & Pittleman PC in Fairfax, Va. Gordon Properties disclosed $11,149,458 in assets and $1,546,344 in liabilities. Condominium Services filed its chapter 11 petition (Bankr. E.D. Va. 10-10581) on Jan. 26, 2010. It scheduled one creditor, the condominium association, with a disputed claim of $436,802.00. The association filed a proof of claim asserting a claim of $453,533.12. A second proof of claim was filed by the Internal Revenue Service for $1,955.45. According to its schedules, if both claims are allowed, it has a net deficit of about $426,900. CSI is wholly owned by Gordon Properties. In February 2012, Judge Mayer denied the motion of the association to substantively consolidate the chapter 11 bankruptcy cases of Gordon Properties and Condominium Services, Inc., the condominium management company. Gordon Properties and CSI opposed the motion. The two cases were previously administratively consolidated. Stephen E. Leach has been appointed as examiner in the Debtor's case. Leach Travell Britt, PC, represents the examiner as counsel. GORDON PROPERTIES: Sept. 20 Hearing on First Owners Settlement -------------------------------------------------------------- The Hon. Robert G. Mayer of the U.S. Bankruptcy Court for the Eastern District of Virginia will convene a hearing on Sept. 12, 2013, at 9:30 a.m., to consider the approval of settlement between Gordon Properties, LLC, et al., and First Owners' Association of Forty Six Hundred Condominium, Inc. The Court also scheduled evidentiary hearings on Sept. 20, at 9:30 a.m. on these matters: i. the Debtors' motion for award of attorney's fees to prevailing party; ii. joint motion to approve service agreement with Condominium Services, Inc.; and iii. U.S. Trustee's motion to appoint Chapter 11 trustee. Additionally, on Sept. 20, the Court will hold a status hearing to consider these matters: A. motion for substantive consolidation; and B. motion to stay garnishment. About Gordon Properties Alexandria, Va.-based Gordon Properties, LLC, owns 40 condominium units in a high-rise apartment building with both residential and commercial units and two commercial units adjacent to the high- rise building. Gordon Properties' ownership of these condos represents about a 20% interest in the Forty Six Hundred Condominium project -- http://foa4600.org/-- in Alexandria. Gordon Properties also owns one of the adjacent commercial units, a restaurant. Gordon Properties sought Chapter 11 protection (Bankr. E.D. Va. Case No. 09-18086) on Oct. 2, 2009, and is represented by Donald F. King, Esq., at Odin, Feldman & Pittleman PC in Fairfax, Va. Gordon Properties disclosed $11,149,458 in assets and $1,546,344 in liabilities. Condominium Services filed its chapter 11 petition (Bankr. E.D. Va. 10-10581) on Jan. 26, 2010. It scheduled one creditor, the condominium association, with a disputed claim of $436,802.00. The association filed a proof of claim asserting a claim of $453,533.12. A second proof of claim was filed by the Internal Revenue Service for $1,955.45. According to its schedules, if both claims are allowed, it has a net deficit of about $426,900. CSI is wholly owned by Gordon Properties. In February 2012, Judge Mayer denied the motion of the association to substantively consolidate the chapter 11 bankruptcy cases of Gordon Properties and Condominium Services, Inc., the condominium management company. Gordon Properties and CSI opposed the motion. The two cases were previously administratively consolidated. Stephen E. Leach has been appointed as examiner in the Debtor's case. Leach Travell Britt, PC, represents the examiner as counsel. GRAND CENTREVILLE: Obtains Approval to Use Cash Collateral ---------------------------------------------------------- Judge Robert G. Mayer of the U.S. Bankruptcy Court for the Eastern District of Virginia authorized Grand Centreville, LLC, on an interim basis, to use cash collateral in a manner consistent with a budget. The Court held that without the interim use of Cash Collateral, the estate will suffer immediate and irreparable harm. As reported by the TCR on Aug. 22, 2013, the Debtor specifically needs cash to pay vendors, pay its lender, meet ongoing operational expenses, satisfy current payment obligations to lessors and utilities, maintain current insurance policies, and preserve and protect its assets. The Debtor is the recipient of a $27 million prepetition note loan, now held by Wells Fargo Bank, N.A., as trustee for the registered holders of J.P. Morgan Chase Commercial Mortgage Securities Corp., Commercial Mortgage Pass-Through Certificates, Series 2005-CIBC13. To the extent that the Lender has an interest in any of the Cash Collateral, it is granted a replacement lien in the collateral type against which it maintains a valid, pre-petition lien. The replacement lien will be of the same validity, priority and enforceability as the pre-petition lien of Lender in that type of assets. Any objection to the Order are required to be submitted with the Clerk of the Court prior to Sept. 17, 2013. A final hearing will be held at 11:30 a.m. on Sept. 24, 2013. A copy of the Order is available for free at: http://bankrupt.com/misc/GRAND_CashORD_823.pdf About Grand Centreville Grand Centreville, LLC, filed a Chapter 11 petition (Bankr. E.D. Va. Case No. 13-13590) on Aug. 2, 2013. The petition was signed by Michael L. Schuett, principal of Black Creek Consulting Ltd., the receiver. Judge Robert G. Mayer presides over the case. The Debtor estimated assets and debts of at least $10 million. GROWTHWORKS CANADIAN: Roseway Waives Security Agreement Default --------------------------------------------------------------- GrowthWorks Canadian Fund Ltd. on Sept. 3 disclosed that it has entered into a sixth amendment to the Participation Agreement dated May 28, 2010 with Roseway Capital S.a.r.l. whereby a payment of $20 million that was payable to Roseway on September 3, 2013 will now become payable on September 30, 2013 and a further $5.7 million will become payable to Roseway by October 7, 2013. Those amounts will bear interest at the rate of 18% per annum from the date on which they were originally payable by Canadian Fund. Canadian Fund continues to be engaged in active discussions with Roseway regarding a possible further, longer-term extension of those payment obligations, as well as amendments to certain other terms of the Participation Agreement and the security agreement in favor of Roseway which grants a charge over certain portfolio and other assets of the Fund. In connection with this amendment, Roseway has also waived until October 1, 2013 a default under the Security Agreement tied to the Fund maintaining a minimum net asset value. Canadian Fund cannot assure investors that these discussions will result in any further extension of the dates by which Canadian Fund must make those payments or that Canadian Fund will have sufficient funds to pay those amounts when due. If Canadian Fund were to default on its obligations under the Participation Agreement or an event of default were to occur under the Security Agreement, the security held by Roseway over Canadian Fund's assets may be enforced by Roseway, which could result in forced divestments of some or all of those assets at values well below carrying values and a significant decline in the values of Class A shares of the Fund. The Board of Directors of Canadian Fund continues to review, with the assistance of its independent financial and legal advisors, the strategic alternatives available to Canadian Fund. GrowthWorks Canadian Fund Ltd., L.P. specializes in early-stage and growth capital. It also supports companies through to maturity. The fund seeks to invest in small to medium sized companies. It seeks to invest in information technology; life sciences; advanced manufacturing; clean technology; communications; media; transportation; medical products and health services; specialty merchandising; computer systems and software; lodging; financial, professional, and personal services; and training and education sectors. The fund prefers to invest in private companies based in Canada with a focus on Ontario, Saskatchewan, and Manitoba. HASSEN IMPORTS: Auction of Dormant Properties on Sept. 11 --------------------------------------------------------- Jason Henry, writing for San Gabriel Valley Tribune, reports that a federal bankruptcy court will auction off 10 dormant properties Sept. 11 that it seized for liquidation from Ziad Alhassen's Hassen Imports Partnership. According to the report, the city of West Covina filed a motion to block Dighton America Inc., which is also run by Mr. Alhassen, from trying to buy back the defunct West Covina Auto Mall. The bankruptcy judge will rule on the city's motion the day of the auction. The report relates the auction will sell five properties in West Covina and five properties in Covina, according to Howard Ehrenberg, the appointed trustee responsible for the sale. The properties includes East Garvey Avenue's West Covina Auto Mall, where the bankruptcy of West Covina Motors Inc. -- also controlled Mr. Alhassen -- led to prime real estate next to the 10 Freeway going unused for years. The corporation operated Chevrolet, Hummer, Ford and Chrysler franchises at the location. According to the report, the minimum offers for the properties range from $210,000 -- for a property at 401 N. Citrus in Covina -- to nearly $17 million for the three lots that make up the West Covina Auto Mall at 1900, 1932 and 2000 East Garvey Avenue. Other minimum offers include $7.75 million for the former Clippinger Chrysler Jeep, 298 N. Azusa Avenue, and $6.2 million for the former Clippinger Chevrolet-Oldsmobile, 137 W. San Bernardino Road. A number of parties have already expressed interest in the locations, Mr. Ehrenberg said, according to the report. West Covina Motors, Inc., doing business as Clippinger Chevrolet and Clippinger Chrysler Jeep Dodge, filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 12-52197) on Dec. 28, 2012. Martin J. Brill, Esq., at Levene, Neale, Bender, Yoo & Brill, LLP, served as counsel. The Debtor estimated assets and debts of at least $10 million in its petition. At the behest of the city of West Covina, the bankruptcy court converted the chapter 11 case of West Covina Motors to a chapter 7 liquidation in April 2013. The city is represented by: ARNOLD M. ALVAREZ-GLASMAN, Esq. CITY ATTORNEY OF THE CITY OF WEST COVINA ALVAREZ-GLASMAN & COLVIN 13181 Crossroads Parkway North Suite 400 - West Tower City of Industry, CA 91746 Tel: (562) 699-5500 E-mail: aglasman@agclawfirm.com - and - Stephen T. Owens, Esq. Jordan A. Kroop, Esq. Christopher J. Petersen, Esq. SQUIRE, SANDERS (US) LLP 555 South Flower Street, 31st Floor Los Angeles, CA 90071 Tel: (213) 624-2500 E-mail: stephen.owens@squiresanders.com jordan.kroop@squiresanders.com christopher.petersen@squiresanders.com Hassen Imports Partnership filed a Chapter 11 petition (Bankr. C.D. Calif. Case No. 11-42068) in Los Angeles, California, on July 27, 2011. Marina Fineman, Esq., at Stutman Treister & Glatt, served as counsel to the Debtor. HIP disclosed $9,238,486 in assets and $37,555,776 in liabilities as of the Chapter 11 filing. HIGH MAINTENANCE: Neligan Foley to Replace Cox and Smith -------------------------------------------------------- High Maintenance Broadcasting, LLC and GH Broadcasting, Inc., seeks authority from the U.S. Bankruptcy Court for the Southern District of Texas to employ Neligan Foley LLP as their counsel effective as of the Petition Date. The firm will be paid based on its ordinary and customary hourly rates, which are: $395 - $675 for partners; and $130 - $350 for paralegals and associates. Prior to hiring Neligan Foley, both Debtors hired the law firm of Cox and Smith LLC as workout counsel. By agreement of both the Debtors and Cox and Smith, Cox and Smith resigned and transferred on April 1, 2013, to Neligan Foley a retainer of $100,000, which had been provided to Cox and Smith by High Maintenance. Neligan Foley applied the Retainer to the fees and expenses incurred prior to June 17, 2013, the date the involuntary petition was originally filed. The fees and expenses incurred by Neligan Foley prior to and including June 17, 2013, were $209,571 in fees and $6,621.45 in fees. Accordingly, Neligan Foley voluntarily wrote off $116,192.45 and thus, is not a creditor of either of the Debtors. The Debtors assure the Court that Neligan Foley is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. The Debtors' proposed counsel may be reached at: Patrick J. Neligan, Jr., Esq. David Ellerbe, Esq. John D. Gaither, Esq. NELIGAN FOLEY LLP 325 N. St. Paul, Suite 3600 Dallas, TX 75201 Telephone: 214-840-5300 Facsimile: 214-840-5301 E-mail: pneligan@neliganlaw.com dellerbe@neliganlaw.com jgaither@neliganlaw.com About High Maintenance On June 17, 2013, an involuntary petition for relief (Bankr. S.D. Tex. Case No. 13-20270) was filed against High Maintenance Broadcasting, LLC by Robert Behar, Estrella Behar, Leibowitz Family, Pedro Dupouy, Latin Capital, Pan Atlantic Bank & Trust, Ltd., Sumit Enterprises, LLC, Jose Rodriguez, Leon Perez, Jays Four, LLC, Benjamin J. Jesselson, Jesselson Grandchildren, Joseph Kavana, Sawicki Family, Shpilberg Mgmt, Saby Behar Rev, Morris Bailey pursuant to section 303 of the Bankruptcy Code. HIGH MAINTENANCE: Hiring Wilkinson Barker on FCC Matters -------------------------------------------------------- High Maintenance Broadcasting, LLC and GH Broadcasting, Inc., seek authority from the U.S. Bankruptcy Court for the Southern District of Texas to employ and compensate certain professionals utilized in the ordinary course of business. At present, the Debtors seek to employ the law firm Wilkinson Barker Knauer, LLP to provide assistance with various Federal Communications Commission filings, advice regarding compliance with FCC rules and regulations, and to assist in preparing for the renewal of the Debtors' FCC licenses in 2014. WBK will bill the Debtors on an hourly basis and will submit monthly invoices to the Debtors setting forth detailed descriptions of the services rendered and time spent during the preceding month. The Debtors seek authorization to compensate WBK on this basis without further Court approval in an amount up to $5,000 per month during the remainder of 2013 and $2,500 thereafter. Any payment in excess of these monthly caps will be subject to prior approval by the Court. The Debtors do not believe that WBK is a "professional" whose retention must be approved by the Court under Section 327 of the Bankruptcy Code. Nonetheless, the Debtors seek Court approval to avoid any subsequent controversy as to their employment and payment of WBK during the pendency of the Chapter 11 cases. About High Maintenance On June 17, 2013, an involuntary petition for relief (Bankr. S.D. Tex. Case No. 13-20270) was filed against High Maintenance Broadcasting, LLC by Robert Behar, Estrella Behar, Leibowitz Family, Pedro Dupouy, Latin Capital, Pan Atlantic Bank & Trust, Ltd., Sumit Enterprises, LLC, Jose Rodriguez, Leon Perez, Jays Four, LLC, Benjamin J. Jesselson, Jesselson Grandchildren, Joseph Kavana, Sawicki Family, Shpilberg Mgmt, Saby Behar Rev, Morris Bailey pursuant to section 303 of the Bankruptcy Code. The Debtors' proposed counsel are Patrick J. Neligan, Jr., Esq., David Ellerbe, Esq., and John D. Gaither, Esq., at Neligan Foley LLP. HIGH MAINTENANCE: Files Schedules of Assets and Liabilities ----------------------------------------------------------- High Maintenance Broadcasting, LLC, filed with the U.S. Bankruptcy Court for the Southern District of Texas its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property B. Personal Property $1,365,838.91 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $1,205.24 E. Creditors Holding Unsecured Priority Claims 0 F. Creditors Holding Unsecured Non-priority Claims $6,808,020.23 -------------- ------------- TOTAL $1,365,838.91 $6,809,225.47 About High Maintenance On June 17, 2013, an involuntary petition for relief (Bankr. S.D. Tex. Case No. 13-20270) was filed against High Maintenance Broadcasting, LLC by Robert Behar, Estrella Behar, Leibowitz Family, Pedro Dupouy, Latin Capital, Pan Atlantic Bank & Trust, Ltd., Sumit Enterprises, LLC, Jose Rodriguez, Leon Perez, Jays Four, LLC, Benjamin J. Jesselson, Jesselson Grandchildren, Joseph Kavana, Sawicki Family, Shpilberg Mgmt, Saby Behar Rev, Morris Bailey pursuant to section 303 of the Bankruptcy Code. The Debtors' proposed counsel are Patrick J. Neligan, Jr., Esq., David Ellerbe, Esq., and John D. Gaither, Esq., at Neligan Foley LLP. HOTEL OUTSOURCE: Incurs $457,000 Net Loss in Second Quarter ----------------------------------------------------------- Hotel Outsource Management International, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $457,000 on $765,000 of revenues for the three months ended June 30, 2013, compared with a net loss of $1.7 million on $870,000 of revenues for the same period last year. The Company reported a net loss of $869,000 on $1.7 million of revenues for the six months ended June 30, 2013, compared with a net loss of $2.0 million on $1.7 million of revenues for the corresponding period of 2012. "Value of the costed benefit component of a transaction converting a loan in 2012, in the amount of approximately $1,296,000 was charged to capital and offset against expenses." The Company's balance sheet at June 30, 2013, showed $5.0 million in total assets, $4.4 million in total liabilities, and stockholders' equity of $594,000. The Company has suffered recurring losses from operations and has a net working capital deficiency that raises substantial doubt about its ability to continue as a going concern. A copy of the Form 10-Q is available at http://is.gd/QPjoM8 New York-based Hotel Outsource Management International, Inc., is a multi-national service provider in the hospitality industry, supplying a range of services in relation to computerized minibars that are primarily intended for in-room refreshments. HOYT TRANSPORTATION: Gets Court Approval to Sell Buses ------------------------------------------------------ The Hon. Nancy Hershey Lord of the U.S. Bankruptcy Court for the Eastern District of New York in August authorized Hoyt Transportation Corp. to sell buses. On July 25, 2013, the Debtor sought approval of three private sales of schools buses to: 1. Quality Bus Service LLC (40 buses) for $1,112,500; 2. Jofaz Transportation, Inc. (38 buses) for $1,092,000; and 3. Agostino Vona (20 buses) for $750,000. The Court also ordered that, to the extent that certain of the buses to be sold are subject to liens of Sovereign Bank, N.A., the Debtor is authorized to satisfy the respective liens of Sovereign Bank, N.A. from the proceeds of the sales of the encumbered buses, such liens totaling $1,585,979 based upon the updated pay-off schedule. About Hoyt Transportation Brooklyn, New York-based Hoyt Transportation Corp. filed a Chapter 11 petition (Bankr. E.D.N.Y. Case No. 13-44299) on July 13, 2013, estimating at least $10 million in assets and liabilities. The Debtor is represented by Kevin J. Nash, Esq., at Goldberg Weprin Finkel Goldstein LLP. Brooklyn-based Hoyt specializes in transportation for children with disabilities. Hoyt operated 350 buses until the contract with the Department of Education expired. IGPS COMPANY: Files Ch. 11 Liquidating Plan ------------------------------------------- iGPS Company LLC and the Official Committee of Unsecured Creditors appointed in its Chapter 11 case filed with the U.S. Bankruptcy Court for the District of Delaware a Chapter 11 plan and accompanying disclosure statement. The Plan proposes to transfer to a liquidation trust all of the remaining assets of the Debtor. As previously reported, substantially all of the Debtor's assets were sold to iGPS Logistics, LLC, for, among other things: (i) $2.5 million in Cash, (ii) waiver of over $150 million in senior secured Claims against the Debtor under a prepetition credit facility, and (iii) assumption by the Buyer of various claims against the Debtor, including certain prepetition payables and employee liabilities, the DIP Claims, cure claims under executory contracts, and certain Administrative and Priority Claims through the Sale Closing Date. Under the Plan, Priority Claims (Class 1) and Non-Lender Secured Claims (Class 2) are unimpaired and will recover 100% of the allowed claim amount. Unsecured Claims (Class 3) are impaired and will receive its pro rata share of the available proceeds. Equity Interests (Class 4) are also impaired and will be cancelled on the effective date. A full-text copy of the Disclosure Statement, dated Aug. 27, 2013, is available at http://bankrupt.com/misc/IGPSOMPANYds0827.pdf A hearing to consider approval of the Disclosure Statement is scheduled for Oct. 1, 2013, at 02:00 PM. Objections are due by Sept. 24. The Debtor is represented by John K. Cunningham, Esq., Richard S. Kebrdle, Esq., Kevin M. McGill, Esq., and Fan B. He, Esq., at WHITE & CASE LLP, in Miami, Florida; and Jeffrey M. Schlerf, Esq., John H. Strock, Esq., and L. John Bird, Esq., at FOX ROTHSCHILD LLP, in Wilmington, Delaware. About iGPS Co. iGPS Company LLC filed a Chapter 11 bankruptcy petition (Bankr. D. Del. Case No. 13-11459) on June 4, 2013, to sell its assets to a group led by Balmoral Funds LLC, absent higher and better offers. iGPS Company -- http://www.igps.net-- is the first and only plastic pallet pooling rental and leasing company in the U.S. It offers plastic pallets with embedded radio frequency identification (RFID) tags. Founded in 2006, the company is headquartered in Orlando, Florida, and has a sales and innovation center in Bentonville, Arkansas. The Debtor estimated $100 million to $500 million in assets and liabilities in its Chapter 11 petition. According to the board resolution authorizing the bankruptcy, Pegasus IGPS LLC owns 12.55% of the company; iGPS Co-Investment LLC owns 18.75%; Kia VIII (iGPS Sub), LLC owns 30.74%; and KIA VIII iGPS Blocker, LLC, owns 12.27%. IGPS COMPANY: Seeks Extension of Lease Decision Deadline -------------------------------------------------------- iGPS Company LLC asks the U.S. Bankruptcy Court for the District of Delaware to extend through and including Dec. 30, 2013, their period within which they may assume or reject unexpired leases of non-residential real property. According to Jeffrey M. Schlerf, Esq., at Fox Rothschild LLP, in Wilmington, Delaware, given that the purchaser of the Debtor's assets is currently utilizing the premises subject to the unexpired leases, including the headquarters, and has not indicated whether it would like to assume or reject those leases, the the Debtor needs additional time to assume or reject the unexpired leases. A hearing on the Debtor's extension request will be on Sept. 19, 2013, at 2:00 p.m. (ET). Objections are due Sept. 12. John H. Strock, Esq., and L. John Bird, Esq., at Fox Rothschild LLP, in Wilmington, Delaware, and John K. Cunningham, Esq., Richard S. Kebrdle, Esq., Kevin McGill, Esq., and Fan B. He, Esq., at White & Case LLP, in Miami, Florida, also represent the Debtor. About iGPS Co. iGPS Company LLC filed a Chapter 11 bankruptcy petition (Bankr. D. Del. Case No. 13-11459) on June 4, 2013, to sell its assets to a group led by Balmoral Funds LLC, absent higher and better offers. iGPS Company -- http://www.igps.net-- is the first and only plastic pallet pooling rental and leasing company in the U.S. It offers plastic pallets with embedded radio frequency identification (RFID) tags. Founded in 2006, the company is headquartered in Orlando, Florida, and has a sales and innovation center in Bentonville, Arkansas. The Debtor estimated $100 million to $500 million in assets and liabilities in its Chapter 11 petition. According to the board resolution authorizing the bankruptcy, Pegasus IGPS LLC owns 12.55% of the company; iGPS Co-Investment LLC owns 18.75%; Kia VIII (iGPS Sub), LLC owns 30.74%; and KIA VIII iGPS Blocker, LLC, owns 12.27%. ISAACSON STEEL: Case Conversion Hearing Moved to Sept. 19 --------------------------------------------------------- The Bankruptcy Court has scheduled a hearing on Sept. 19, 2013, at 9:00 a.m. to consider approval of the U.S. Trustee's motion to convert the Chapter 11 cases of Isaacson Structural Steel, Inc., et al., to Chapter 7 of the Bankruptcy Code. As reported by the TCR on April 5, 2013, the U.S. Trustee sought for the conversion of the cases so that a disinterested trustee may promptly investigate claims against third parties, including insiders or affiliates of the Debtors, or parties related to insiders or affiliates of the Debtors. According to the U.S. Trustee, a disinterested trustee is needed to review the Debtors' conduct as recent pleadings filed with the Court disclose the existence of a federal Grand Jury and other fraud investigation underway by the U.S. Attorney for the District of Vermont. Based in Berlin, New Hampshire, Isaacson Structural Steel, Inc., filed for Chapter 11 bankruptcy (Bankr. D. N.H. Case No. 11-12416) on June 22, 2011. Bankruptcy Judge J. Michael Deasy presides over the case. Isaacson Structural Steel estimated both assets and debts of $10 million to $50 million. The petition was signed by Arnold P. Hanson, Jr., president. An official committee of unsecured creditors has been appointed in Isaacson Structural Steel's case. Nixon Peabody LLP, and Mesirow Financial Consultants represents the Committee. A bankruptcy petition was also filed for Isaacson Steel, Inc. (Bankr. D. N.H. Case No. 11-12415) on June 22, 2011, estimating assets and debts of $1 million to $10 million. The petition was signed by Arnold P. Hanson, Jr., president. William S. Gannon, Esq., also represents Isaacson Steel. The cases are being jointly administered. No trustee or examiner has been appointed. INSPIREMD INC: Completes First Phase of Manufacturing Upgrade ------------------------------------------------------------- InspireMD, Inc., has completed the first phase of a manufacturing consolidation that the Company believes will improve its long term gross margins. Simultaneously, the Company has signed an agreement with Healthlink Europe, a medical device support services and distribution company, to provide logistical and customer support for InspireMD's commercial operations and clinical activities. Healthlink will provide InspireMD with customer service center capabilities for inquiries from hospitals and distributors. Healthlink will also handle all inventory controls, warehousing, shipping, and invoicing and receivables management for customers worldwide on behalf of InspireMD. Alan Milinazzo, president and CEO of InspireMD, commented, "We have successfully completed the first stage of our manufacturing strategy through the consolidation of our Israeli manufacturing facilities. Over time, we believe that this will reduce our operating costs by streamlining our manufacturing operations." "As we prepare to announce the 12-month results from the MASTER trial in October, we continue to put in place the appropriate infrastructure to be able to meet the anticipated increase in demand for our lifesaving stent technology. The agreement with Healthlink Europe is intended to support both current commercial activities as well as ongoing clinical trials, and should provide us instant access to world-class customer logistics to support all of our customers through a single partner," concluded Mr. Milinazzo. Rick Hughes, president of HealthLink Europe, commented, "For nearly 20 years Healthlink has built an impressive track record of providing superior customer service and logistics support to the medical device industry. We look forward to working with InspireMD as the Company prepares for increased demand for its MGuardTM stent technology throughout Europe." About InspireMD InspireMD, Inc., was organized in the State of Delaware on Feb. 29, 2008, as Saguaro Resources, Inc., to engage in the acquisition, exploration and development of natural resource properties. On March 28, 2011, the Company changed its name from "Saguaro Resources, Inc." to "InspireMD, Inc." Headquartered in Tel Aviv, Israel, InspireMD, Inc., is a medical device company focusing on the development and commercialization of its proprietary stent platform technology, Mguard. MGuard provides embolic protection in stenting procedures by placing a micron mesh sleeve over a stent. The Company's initial products are marketed for use mainly in patients with acute coronary syndromes, notably acute myocardial infarction (heart attack) and saphenous vein graft coronary interventions (bypass surgery). InspireMD reported a net loss of US$17.59 million on US$5.35 million of revenue for the year ended June 30, 2012, compared with a net loss of US$6.17 million on US$4.67 million of revenue during the prior year. For the nine months ended March 31, 2013, the Company incurred a net loss of $14.31 million on $3.37 million of revenues. The Company's balance sheet at March 31, 2013, showed $9.79 million in total assets, $13.20 million in total liabilities, and a $3.40 million total capital deficiency. Kesselman & Kesselman, in Tel Aviv, Israel, issued a "going concern" qualification on the consolidated financial statements for the year ended June 30, 2012. The independent auditors noted that the Company has had recurring losses, negative cash flows from operating activities and has significant future commitments that raise substantial doubt about its ability to continue as a going concern. The Company said the following statement in its quarterly report for the period ended Dec. 31, 2012: "The Company has had recurring losses and negative cash flows from operating activities and has significant future commitments. For the six months ended December 31, 2012, the Company had losses of approximately $9.4 million and negative cash flows from operating activities of approximately $5.8 million. The Company's management believes that its financial resources as of December 31, 2012 should enable it to continue funding the negative cash flows from operating activities through the three months ended September 30, 2013. Furthermore, commencing October 2013, the Company's senior secured convertible debentures (the "2012 Convertible Debentures") are subject to a non-contingent redemption option that could require the Company to make a payment of $13.3 million, including accrued interest. Since the Company expects to continue incurring negative cash flows from operations and in light of the cash requirement in connection with the 2012 Convertible Debentures, there is substantial doubt about the Company's ability to continue operating as a going concern. These financial statements include no adjustments of the values of assets and liabilities and the classification thereof, if any, that will apply if the Company is unable to continue operating as a going concern." INTERNATIONAL HOME: Court Dismisses Chapter 11 Case --------------------------------------------------- The U.S. Bankruptcy Court for the District of Puerto Rico dismissed on Aug. 30, 2013, the Chapter 11 case of International Home Products, Inc., and Health Distillers International, Inc. As reported in the TCR on June 19, 2013, the Debtors asked the Bankruptcy Court to dismiss their Chapter 11 case. According to the Debtors, they have attempted to reorganize pursuant to the provisions of Chapter 11 Bankruptcy Code. Nevertheless, the case have been plagued with excessive litigation between the Debtors and their secured creditor, First Bank-Puerto Rico, Inc., which has diverted the energies and resources of the Debtors and has severely hampered the Debtor's reorganization process. In this relation, the Debtors have been able to resolve the differences with FirstBank and have reached a final settlement for the benefit of the estate, all creditors and the Debtors themselves. The settlement through a joint stipulation includes payment of the 7Bank's claims. The Debtors will also be able to retain title to the inventory and other personal assets encumbered by FirtBank's lien. President Andrew Bert Foti will pay FirstBank for their release under the payment plan. About International Home Products International Home Products, Inc., is engaged in the sale, financing of "Lifetime" cookware and other kitchenware as well as sale of account receivables in the secondary market. It is the exclusive distributor of "Lifetime" products in Puerto Rico for over 40 years. The Company filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 12-02997) on April 19, 2012. Carmen D. Conde Torres, Esq., in San Juan, P.R., serves as the Debtor's counsel. Wigberto Lugo Mendel, CPA, serves as its accountants. The Debtor disclosed $66,155,798 and $43,350,031 in liabilities as of the Chapter 11 filing. Secured lender First-Bank Puerto Rico is represented by Manuel Fernandez-Bared, Esq., Angel Sosa-Baez, Esq., and Linette Figueroa-Torres, Esq., at Toro, Colon, Mullet, Rivera & Sifre, P.S.C. On May 7, 2012, International Home's affiliate, Health Distillers International, Inc., filed a separate Chapter 11 petition (Bankr. D.P.R. Case No. 12-03574. J AND Y INVESTMENT: Plan Confirmation Denied, Stay Relief OK'd -------------------------------------------------------------- The Hon. Karen A. Overstreet of the U.S. Bankruptcy Court for the Western District of Washington, in an August 9 order, denied confirmation of J And Y Investment LLC's Second Amended Plan of Reorganization and granted BACM 2004-1 320th Street LLC's request for relief from the automatic stay. Pursuant to the order, the Court held that: 1. the Debtor's request to disqualify BACM's vote is denied; 2. the Plan is unconfirmable as a matter of law because the Plan did not receive necessary votes to satisfy the requirements of Section 1129(a)(10) of the Bankruptcy Code; and 3. BACM and any designee or successor-in-interest is allowed to take all steps necessary or appropriate to enforce its state court rights and remedies against any portion or all of the property, rights, interests, and estates. As reported in the Troubled Company Reporter on Aug. 1, 2013, BACM objected to the Debtor's Plan on the grounds that (a) no impaired class will vote in favor of the Plan, as required by Sec. 1129(a)(10); (b) the Plan is not proposed in good faith, as required by Sec. 1129(a)(3); (c) the Plan is not fair and equitable, as required by Sec. 1129(b); and (d) the Plan is not feasible, as required by Sec. 1129(a)(11). According to BACM, although the Plan purports to provide for payments based on a 30-year amortization, analysis of the Plan projections attached to the Second Amended Disclosure Statement (Dkt. 146) reveals that they project payments based on an amortization period of 502 months (41.8 years). To make matters worse, BACM adds, after making interest-only payments at the unreasonably low rate of only 4.75% for two years and very modest principal payments in Plan years 3 through 7, the obligation at the end of the Plan period would exceed $9,950,000 (a reduction of only 4.25% of the overall obligation) even if the Debtor were to make every payment as promised. The Chapter 11 Plan Pursuant to the Second Amended Disclosure Statement, the Plan h proposes the continued operation of the Debtor's property in the ordinary course of business. Funding for payments proposed in the Plan will come from cash on hand as of the effective date of the Plan and operating revenues. The secured creditor will receive (i) 24 equal monthly interest- only payments with interest accruing on the unpaid principal balance at the rate of 4.75% per annum, followed by (ii) 59 equal monthly payments of principal and interest based on 30-year amortization, with interest accruing on the unpaid principal balance at the rate of 4.75% per annum, (iii) a single final payment of all outstanding principal and interest in the 84th full month following the Effective Date. The lender will retain its security interest against the property of the estate, and leases and rents associated with the property. Allowed general unsecured claims will be paid in full in 12 monthly payments. Interest will accrue on the unpaid balance of each Class 3 Claim at the Federal Judgment Rate. Holders of allowed interests will retain their interests following the confirmation of the Debtor's Plan but will not receive any distribution on account of those interests. A full-text copy of the Second Amended Disclosure Statement dated May 20, 2013, is available for free at: http://bankrupt.com/misc/JANDYds0520.pdf About J and Y Investment J and Y Investment, LLC, sought Chapter 11 protection (Bankr. W.D. Wash. Case No. 13-10218) in Seattle on Jan. 10, 2013. The Debtor is a single purpose Delaware limited liability company formed in 2004 to acquire the real property and office building located at 2505 S. 320th Street, Federal Way, Washington. The property was appraised on Sept. 3, 2010, at between $11,000,000 and $11,200,000. BACM 2004-1 320th Street South, LLC, holds the beneficial interest in the Deed of Trust and Security Agreement encumbering the Property, and has filed a proof of claim in the total amount of $10,271,963.93 as of the Petition Date. The Debtor disclosed total assets of $13.05 million against total liabilities of $8.65 million in its schedules. The Debtor's sole member is East of Cascade, Inc. Armand J. Kornfeld, Esq., and Katriana L. Samiljan, Esq., at Bush Strout & Kornfeld, LLP, in Seattle, represent the Debtor as bankruptcy counsel. JHK INVESTMENTS: Can Access Bay City Cash Collateral 'til Sept. 30 ------------------------------------------------------------------ On Aug. 30, 2013, the U.S. Bankruptcy Court for the District of Connecticut authorized JHK Investments, LLC, to use cash collateral, including proceeds from JHK's accounts receivable, which liens may be subject to the liens of Bay City Capital Fund V, L.P., and Bay City Capital Fund V Co. Investment Fund L.P., for the period from Aug. 21, 2013, through Sept. 30, 2013. The liens of Bay City and any replacement thereof pursuant to the Order, and any priority to which Bay City may be entitled or become entitled under Section 507(b) of the Bankruptcy Code, will be subject and subordinate to a carve-out of such liens for amounts payable by JHK for (i) fees of the United States trustee; (ii) accrued and unpaid invoices for High Mountain Ranch for its employees solely for work performed on behalf of JHK and its subsidiaries in an amount not to exceed $2,500 in the aggregate, and (iii) the allowed reasonable fees of counsel for JHK arising and incurred by counsel after April 1, 2013, in an amount not to exceed $50,000, for legal services directly related to the implementation of a sale of any assets of JHK or the assets of any JHK subsidiary in accordance with the orders of the Court, including the Stipulated Order Regarding JHK Investments, LLC's Application for Preliminary Injunction dated Feb. 27, 2013. A final hearing on the motion of JHK Investments, LLC to use cash collateral will be held on Oct. 1, 2013, at 10:00 a.m. About JHK Investments JHK Investments, LLC, filed a Chapter 11 petition (Bankr. D. Conn. Case No. 12-51608) in Bridgeport, Conn., on Aug. 29, estimating under $100 million in assets and more than $10 million in liabilities. James Berman, Esq., Lawrence S. Grossman, Esq., Craig I. Lifland, Esq., and Aaron Romney, Esq., at Zeisler & Zeisler, P.C., represent the Debtor. Westport, Connecticut-based JHK is an investment company founded by the former senior management team of United States Surgical Corporation. Founded by Leon C. Hirsch in 1963, USSC became a global medical device manufacturer with sales exceeding $1.2 billion and employing $4,000 Connecticut residents. The Debtor disclosed $38,690,639 in assets and $32,127,278 in liabilities as of the Chapter 11 filing. Following the success of USSC, Mr. Hirsch and two other senior USSC executives created JHK in order to produce and develop new markets and penetrate established markets throughout the world for high-tech medical devices. JHK owns equity in several start-up medical subsidiaries. The start-ups include Interventional Therapies, LLC, Auditory Licensing Company, LLC, Biowave Corporation, Gorham Enterprises, LLC, and American Bicycle Group, LLC. Bay City claims to be owed $31 million for funding provided to the Debtor since January 2011. The principals at JHK -- Mr. Hirsch, Turi Josefsen, and Robert A. Knarr -- guaranteed JHK's obligations, pledged the property in Wilton, Connecticut to secure obligations under the guaranty, and pledged all equity interests of JHK. In March 2012, Eleuthera, in its capacity as administrative agent for Bay City, declared an event of default as a result of the passage of the maturity date and the failure to pay the entire amount outstanding. On Aug. 28, 2012, Bay City and Eleuthera purported to exercise the pledge agreements insofar as they purported to register the Principals' interest in JHK in the name of Eleuthera, as nominee for Bay City, and purported to reserve their right to exercise voting rights in JHK. LANDAUER HEALTHCARE: Sec. 341 Creditors' Meeting Set for Sept. 23 ----------------------------------------------------------------- The U.S. Trustee for Region 3 will convene a meeting of creditors pursuant to 11 U.S.C. 341(a) in the Chapter 11 case of Landauer Healthcare Holdings, Inc. on Sept. 23, 2012, at 10:00 a.m. The meeting will be held at J. Caleb Boggs Federal Building, Room 2112, 844 King Street, in Wilmington, Delaware. Counsel for the Debtors can be reached at: Michael R. Nestor, Esq. Matthew B. Lunn, Esq. Justin H. Rucki, Esq. YOUNG CONAWAY STARGATT & TAYLOR, LLP Rodney Square, 1000 North King Street Wilmington, DE 19801 Tel: (302) 571-6600 Fax: (302) 571-1253 E-mail: mnestor@ycst.com mlunn@ycst.com jrucki@ycst.com - and - John A. Bicks, Esq. K&L GATES LLP 599 Lexington Avenue New York, NY 10022-6030 Tel: (212) 536-3906 Fax: (212) 536-3901 E-mail: john.bicks@klgates.com - and - Charles A. Dale III, Esq. Mackenzie L. Shea, Esq. K&L GATES LLP One Lincoln Street Boston, MA 02111 Tel: (617) 261-3100 Fax: (617) 261-3175 E-mail: chad.dale@klgates.com mackenzie.shea@klgates.com About Landauer Healthcare Holdings Home medical equipment provider Landauer Healthcare Holdings, Inc., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-12098) on Aug. 16, 2013, with a deal to sell all assets to Quadrant Management Inc. for $22 million, absent higher and better offers. The Company has 32 operating locations, with 50% of inventory concentrated in Mount Vernon, New York; Great Neck, New York; Warwick, Rhode Island; and Philadelphia, Pennsylvania. Landauer, which derives revenues by reimbursement from insurers, Medicare and Medicaid, reported net revenues of $128.5 million in fiscal year ended March 31, 2013. Landauer estimated assets and debt of at least $50 million. The Debtors have tapped K&L Gates LLP as bankruptcy counsel, Young Conaway Stargatt & Taylor LLP as Delaware counsel, Carl Marks Advisory Group as financial advisors, and Epiq Systems as claims and notice agent. LANDAUER HEALTHCARE: Trustee Appoints 5-Member Creditors Panel -------------------------------------------------------------- Roberta A. DeAngelis, the U.S. Trustee for Region 3, appointed five members to the official committee of unsecured creditors in the Chapter 11 cases of Landauer Healthcare Holdings, Inc. The Creditors Committee members are: 1. ResMed Corp. Attn: Michael Rider 9001 Spectrum Center Blvd. San Diego, CA 92123 Tel: 858-836-6719 Fax: 858-836-5517 2. Philips Respironics Inc. Attn: Greg Creighan 801 Presque Isle Dr. Pittsburgh, PA 15239 Tel: 724-387-4059 3. Automotive Rentals, Inc. Attn: Richard Moyer 4001 Leadenhall Road PO Box 5039 Mt. Laurel, NJ 08054-5039 Tel: 856-914-7555 Fax: 856-608-7151 4. Invacare Corporation Attn: Frederick Bougher 1320 Taylor St. Elyria, OH 44035 Tel: 440-329-6171 Fax: 440-326-3520 5. RGH Enterprises, d/b/a Independence Medical Attn: Steven Eisenberg 1810 Summit Commerce Park Twinsburg, OH 44087 Tel: 330-425-0267 Fax: 330-487-1463 Attorney assigned to this Case: Jane M. Leamy, Esq. Tel: (302) 573-6491 Fax: (302) 573-6497 About Landauer Healthcare Holdings Home medical equipment provider Landauer Healthcare Holdings, Inc., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-12098) on Aug. 16, 2013, with a deal to sell all assets to Quadrant Management Inc. for $22 million, absent higher and better offers. The Company has 32 operating locations, with 50% of inventory concentrated in Mount Vernon, New York; Great Neck, New York; Warwick, Rhode Island; and Philadelphia, Pennsylvania. Landauer, which derives revenues by reimbursement from insurers, Medicare and Medicaid, reported net revenues of $128.5 million in fiscal year ended March 31, 2013. Landauer estimated assets and debt of at least $50 million. Michael R. Nestor, Esq., Matthew B. Lunn, Esq., and Justin H. Rucki, Esq., at Young Conaway Stargatt & Taylor, LLP; and John A. Bicks, Esq., Charles A. Dale III, Esq., and Mackenzie L. Shea, Esq., at K&L Gates LLP, serve as the Debtor's counsel. Carl Marks Advisory Group serves as the Debtor's financial advisors, and Epiq Systems as claims and notice agent. LAUSELL INC: Confirmation Hearing Rescheduled for Sept. 30 ---------------------------------------------------------- The Hon. Mildred Caban Flores of the U.S. Bankruptcy Court for the District of Puerto Rico rescheduled for Sept. 30, 2013, at 9 a.m., the hearing to consider confirmation of Lausell Inc.'s Plan of Reorganization. Certain holders of equity security interest in the Debtor requested for a reset of the Aug. 26 hearing due to lack of due process and notice. As reported in the Troubled Company Reporter on Aug. 8, 2013, Judge Flores approved the Disclosure Statement as containing adequate information as required under the Bankruptcy Code. The Debtor is thus authorized to solicit votes on its. As previously reported by The Troubled Company Reporter, Lausell Inc.'s Disclosure Statement reveals that holders of allowed general unsecured claims (Class 6) in Lausell Inc. are impaired and will recover 2% of their claim amount. Payment of the Class 6 Claims will come from the $50,000 carve-out to be reserved from the proceeds of the sale of the Debtor's assets to La Re. La Re, as Purchaser, will provide a Cash payment to fund the Plan sufficient to (i) settle in full the secured claims of First Bank Puerto Rico and Citibank, N.A., for $5,600,000, in Cash; (ii) and will assume certain of the Debtor's debts for $3,080,489, including the claim of Puerto Rico Industrial Development Co. (Class 2). About Lausell Inc. Lausell, Inc., filed a bare-bones Chapter 11 petition (Bankr. D.P.R. Case No. 12-02918) on April 17, 2012, in Old San Juan, Puerto Rico. Lausell, also known as Aluminio Del Caribe, is a manufacturer of windows and doors. Bankruptcy Judge Mildred Caban Flores oversees the case. Charles Alfred Cuprill, Esq., at Charles A. Curpill, P.S.C. Law Offices, in San Juan, Puerto Rico, serves as counsel to the Debtor. The Bayamon, Puerto Rico-based company disclosed $34,059,950 in assets and liabilities of $24,489,414 in its amended schedules. LEHMAN BROTHERS: Belik Seeks Stay Relief to Pursue Insurance ------------------------------------------------------------ A claimant represented by New York-based Sacks and Sacks LLP asked the U.S. Bankruptcy Court in Manhattan to lift the automatic stay that was applied to a lawsuit she filed against Lehman Brothers Holdings Inc.'s subsidiary. Yuri Belik, the claimant who figured in an accident at a construction site owned by LB 745 LLC, wants to pursue her insurance claim but cannot do so because of the automatic stay, an injunction that halts actions by creditors against a company under bankruptcy protection. LB 745, a Lehman subsidiary which is also in Chapter 11, was reportedly covered under an insurance policy provided by American Home Assurance Co. at the time of the accident. Sacks and Sacks LLP can be reached at: David Mayer, Esq. 150 Broadway, 4th Floor New York, NY 10038 Tel: (212) 964-5570 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. LEHMAN BROTHERS: Eichorn Allowed to Pursue Oklahoma Suit -------------------------------------------------------- The Bankruptcy Court gave its stamp of approval on a stipulation among Lehman Brothers Holdings Inc., the trustee of Lehman Brothers Inc., and Sharon Eichorn allowing the claimant to sue the holdings company. In 2006, Ms. Eichorn filed a lawsuit against the Lehman brokerage in a district court in Oklahoma after she figured in an accident at a Holiday Inn Select hotel. The claimant named the brokerage as a defendant based on information that it is the owner of the hotel. Lehman's own records, however, show that it is the holdings company and not the brokerage, which had an indirect interest in the hotel at the time of the accident. The agreement allows the claimant to either resume her lawsuit to recover damages from the proceeds payable to her under an insurance policy; or settle the lawsuit with Lehman's insurer. In case any judgment or other relief is allowed against the holdings company in the lawsuit, recovery will be limited to the insurance proceeds. The claimant is required under the agreement to file a motion seeking to add the holdings company as a defendant in the lawsuit, and to dismiss the brokerage from same with prejudice. A copy of the agreement is available for free at http://is.gd/KQ6ATk 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. LEHMAN BROTHERS: Trustee Wins Nod to Settle Lloyds Claim -------------------------------------------------------- The trustee of Lehman Brothers Holdings Inc.'s brokerage received the green light from the U.S. Bankruptcy Court in Manhattan to settle the claim of Lloyds TSB Bank plc. Under the deal, Lloyds can assert a general unsecured claim in the amount of $19,298,122, down from the $19,409,548 claim it originally wanted. The deal is formalized in a nine-page stipulation which is available for free at http://is.gd/jOVE22 Lloyds TSB Bank plc is represented by: Hugh F. Hill IV HOGAN LOVELLS US LLP 875 Third Avenue New York, NY 10022 Telephone: (212) 918-3000 Facsimile: (212) 918-3100 Email: hugh.hill@hoganlovells.com 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. LIFE CARE: Florida Regulator Objects to Use of Cash Collateral -------------------------------------------------------------- The Florida Office of Insurance Regulation, a Division of the Florida Financial Services Commission, objects to the unrestricted use of statutorily required "minimum liquid reserves" that comprise part of the "cash collateral" Life Care St. Johns, Inc. proposes to fund the administration of the bankruptcy proceedings. The Regulator proposes that two of the minimum liquid reserves (MLR) be used only for their express purpose -- to protect the resident. By its order dated July 31, 2013, the Court overruled the Regulator's prior objection to the Debtor's use of "cash collateral." The Regulator said the current objection is more limited, addressing only two statutorily required MLR escrow accounts and the Regulator does not object to any use of the reserve accounts. Section 651.035 requires a continuing care retirement community, such as Glenmoor, to establish and maintain certain "minimum liquid reserve" accounts that are held in escrow pursuant to section 651.033. The establishment and maintenance of the MLR escrow accounts are a condition to a CCRC receiving and maintaining its certificate of authority to conduct business as a CCRC in Florida. Section 651.035(1) requires the creation and maintenance of three MLR escrow accounts. The Regulator said the objection only concerns two of those accounts. The first is the "operating reserve account" required by section 651.035(1)(c). The second is the "renewal and replacement" reserve account required by section 651.035(1)(d). The Regulator contends the statutes creating the two MLR escrow accounts expressly state the purposes of such reserve accounts. "[T]he 'operating reserves required under this subsection shall be in an unencumbered account held in escrow for the benefit of the residents.' Sec. 651.035(1)(c) (emphasis added). The renewal and replacement account "must be used for capital items or major repairs." Sec.651.035(6). The Regulator said it is undisputed that statutorily required "minimum" to be held in each account is $1,477,890. At the second preliminary hearing on the use of cash collateral counts on July 25, 2013, the Regulator did not object to the use of "excess" monies above these statutory minimum requirements. The Regulator said its position is that the statutorily required minimum amounts be used only for the express purposes for which such reserve accounts were created-benefit of the residents. The Regulator objects to the unrestricted use of the funds for the debtor's administration of the estate, which benefits only the Debtor (and their professionals), not the residents or the facilities for capital items and major repairs. The Regulator proposes that Debtor maintain the current MLR escrow accounts. The first of these accounts would be an operating reserve account that would pay only for specified items. The second account would be a renewal and replacement account to be used solely for "capital items or major repairs." Access to such escrowed accounts should only be at the direction of the Bankruptcy Court. Under such a scheme, these reserve accounts would be limited to the express statutory purposes for which they were created. The Regulator objects to the unrestricted use of the currently escrowed operating and renewal or replacement reserves and proposes that such reserve funds remain in the segregated escrow accounts and be used only for the purposes for which they were established in accordance with Florida Statutes Chapter 651 upon order of the Bankruptcy Court. Attorney for Office of Insurance Regulation can be reached at: C. TIMOTHY GRAY, Esq. Assistant General Counsel Office of Insurance Regulation Florida Financial Services Commission Larson Building, Room 612-L 200 East Gaines Street Tallahassee, FL 32399-4206 Tel: (850) 413-4122 Fax: (850) 922-2543 E-mail: tim.gray@floir.com About Life Care St. Johns Life Care St. Johns, Inc., filed a Chapter 11 petition (Bankr. M.D. Fla. Case No. 13-04158) on July 3, 2013. The Debtor is the owner and operator of a continuing care retirement community known as Glenmoor consisting of 144 independent living units located on a 40-acre site in St. Johns County, Florida. Judge Jerry A. Funk presides over the case. Richard R. Thames, Esq., and Eric N. McKay, Esq., at Stutsman Thames & Markey, P.A., serves as the Debtor's counsel. Navigant Capital Advisors, LLC, acts as the Debtor's financial advisor. American Legal Claim Services, LLC, serves as claims and noticing agent. The Committee of Creditors Holding Unsecured Claims appointed in the bankruptcy case of Life Care St. Johns, Inc., is represented by Akerman Senterfitt's David E. Otero, Esq., and Christian P. George, Esq., in Jacksonville, Florida. Bruce Jones signed the petition as CEO. The Debtor estimated assets of at least $10 million and debts of at least $50 million. LIFE CARE: Committee Wants to Limit Use of Cash Collateral ---------------------------------------------------------- The Committee of Creditors Holding Unsecured Claims appointed in the bankruptcy case of Life Care St. Johns, Inc. filed a response to the Debtor's (i) Motion for Interim and Final Orders Authorizing the Use of Cash Collateral and (ii) Motion for Order Authorizing and Directing Wells Fargo Bank, N.A., as Escrow Agent, to Transfer Funds Held in the Debtor's Operating Reserve Account to the Debtor's General Operating Account. On July 3, 2013, the Debtor filed its Motion for Use of Cash Collateral wherein it requests, inter alia, the release of all funds held in the Operating Reserve and the release of certain funds held in the Renewal and Replacement Reserve for the Debtor's use for general operations of its property. On August 2, 2013, the Debtor filed its Motion for Transfer of Fund wherein it requests an Order directing the escrow agent of the Operating Reserve to transfer the funds held in Operating Reserve to the Debtor's general operating account. In the Motion for Use of Cash Collateral and the Motion for Transfer of Funds, the Debtor seeks to utilize the funds held in both the Operating Reserve and Renewal and Replacement Reserve, as well as the cash collateral, pursuant to a Court-approved budget and Cash Collateral Order. The Committee believes that certain safeguards and limitations should be adopted to protect the funds currently held in the Operating Reserve and Renewal and Replacement Reserve. If the Debtor agrees to these safeguards and the proposed orders reflect the safeguards, then the Committee will support the Motion for Use of Cash Collateral and Motion to Transfer Funds. If not, the Committee reserves its rights to object to the Motion for Use of Cash Collateral and Motion to Transfer Funds. The Committee also reserves the right to object to the proposed budget and Cash Collateral Order. The Committee believes these safeguards and limitations should be put in place: A. The funds currently held in both the Operating Reserve and Renewal and Replacement Reserve accounts will remain segregated from the Debtor's general operating account until the Debtor requires their use and the proposed use is in accordance with the Court-approved budget. This includes both the amounts up to the statutory minimum as well as the excess amounts in the accounts. B. The funds currently held in both the Operating Reserve and Renewal and Replacement Reserve accounts will not be transferred to the Debtor's operating account until reasonably necessary to be utilized by the Debtor in accordance with the court-approved budget. C. The Renewal and Replacement Reserve will only be used for Capital expenditures (for major repairs or replacement of capital items) in accordance with the court-approved budget. D. Both the Operating Reserve and Renewal and Replacement Reserve will be replenished post-reorganization or post-sale to satisfy the requirements for Florida Office of Insurance Regulation licensure and Chapter 651, Florida Statutes (subject to continued use of the Debtor's facility as a CCRC and the associated need for licensure. Assuming that is the case, replenishment will need to be addressed as part of a Plan of Reorganization (i.e., forecasts will need to demonstrate feasibility of replenishment or if there is a sale, the successor will have the obligation to evidence statutory reserves to maintain/retain license as a CCRC.)) Counsel for the Committee of Creditors Holding Unsecured Claims of Life Care St. Johns, Inc. can be reached at: David E. Otero, Esq. Christian P. George, Esq. 50 North Laura Street, Suite 3100 Jacksonville, FL 32202 Tel: (904) 798-3700 Fax: (904) 798-3730 Email: david.otero@akerman.com christian.george@akerman.com About Life Care St. Johns Life Care St. Johns, Inc., filed a Chapter 11 petition (Bankr. M.D. Fla. Case No. 13-04158) on July 3, 2013. The Debtor is the owner and operator of a continuing care retirement community known as Glenmoor consisting of 144 independent living units located on a 40-acre site in St. Johns County, Florida. Judge Jerry A. Funk presides over the case. Richard R. Thames, Esq., and Eric N. McKay, Esq., at Stutsman Thames & Markey, P.A., serves as the Debtor's counsel. Navigant Capital Advisors, LLC, acts as the Debtor's financial advisor. American Legal Claim Services, LLC, serves as claims and noticing agent. The Committee of Creditors Holding Unsecured Claims appointed in the bankruptcy case of Life Care St. Johns, Inc., is represented by Akerman Senterfitt's David E. Otero, Esq., and Christian P. George, Esq., in Jacksonville, Florida. Bruce Jones signed the petition as CEO. The Debtor estimated assets of at least $10 million and debts of at least $50 million. LIFE CARE: Can Employ Continuum Development as Consultant --------------------------------------------------------- Life Care St. Johns, Inc., doing business as Glenmoor, sought and obtained approval from the U.S. Bankruptcy Court for the Middle District of Florida to employ Continuum Development Services as its operational review consultant. Continuum will provide an independent assessment of Glenmoor's operations and make recommendations for improving revenues based on its findings. Continuum will also prepare a report of its findings, recommendation and conclusions within 45 days of its engagement. Continuum's consulting fees for the review of Glenmoor during the Assessment Phase will be $60,000. Actual out-of-pocket expenses are not expected to exceed 15% of project costs. Continuum requires a retainer equal to 50% of project costs prior to the site visit. A second payment equal to 35% of project costs will be due after the site visit is completed. The final billing for remaining project costs will occur upon submission of the written draft report. Daniel H. Gray -- Dan.gray@consulting-cds.com -- president of Continuum, assures the Court that Continuum is a "disinterested person" within the meaning of Sections 101(14) and 327(a) of the Bankruptcy Code, and does not hold or represent any interest adverse to the Debtor or its Chapter 11 estate, creditors, or any other party with an actual or potential conflict in the Chapter 11 case. The Debtor is represented by Richard R. Thames -- rrt@stmlaw.net -- and Eric N. McKay -- enm@stmlaw.com -- at Stutsman Thames & Markey, P.A. About Life Care St. Johns Life Care St. Johns, Inc., filed a Chapter 11 petition (Bankr. M.D. Fla. Case No. 13-04158) on July 3, 2013. The Debtor is the owner and operator of a continuing care retirement community known as Glenmoor consisting of 144 independent living units located on a 40-acre site in St. Johns County, Florida. Judge Jerry A. Funk presides over the case. Richard R. Thames, Esq., and Eric N. McKay, Esq., at Stutsman Thames & Markey, P.A., serves as the Debtor's counsel. Navigant Capital Advisors, LLC, acts as the Debtor's financial advisor. American Legal Claim Services, LLC, serves as claims and noticing agent. The Committee of Creditors Holding Unsecured Claims appointed in the bankruptcy case of Life Care St. Johns, Inc., is represented by Akerman Senterfitt's David E. Otero, Esq., and Christian P. George, Esq., in Jacksonville, Florida. Bruce Jones signed the petition as CEO. The Debtor estimated assets of at least $10 million and debts of at least $50 million. LIFE CARE: Has Green Light to Hire Hamlyn as Marketing Consultant ----------------------------------------------------------------- Life Care St. Johns, Inc. sought and obtained approval from the U.S. Bankruptcy Court to employ Hamlyn Senior Marketing, LLC as marketing consultant. During a "60 day Assessment Phase", Hamlyn will be paid $15,000 per month. During the "90-day Implementation Phase", the firm will be paid $10,000 per month. Thereafter, if consultation needs continue, Hamlyn will be paid on an "as needed" basis. The Marketing Services Agreement provides for the monthly fees for sales and marketing services to be in advanced with the first month's payment to be made upon execution of the Marketing Services Agreement. About Life Care St. Johns Life Care St. Johns, Inc., filed a Chapter 11 petition (Bankr. M.D. Fla. Case No. 13-04158) on July 3, 2013. The Debtor is the owner and operator of a continuing care retirement community known as Glenmoor consisting of 144 independent living units located on a 40-acre site in St. Johns County, Florida. Judge Jerry A. Funk presides over the case. Richard R. Thames, Esq., and Eric N. McKay, Esq., at Stutsman Thames & Markey, P.A., serves as the Debtor's counsel. Navigant Capital Advisors, LLC, acts as the Debtor's financial advisor. American Legal Claim Services, LLC, serves as claims and noticing agent. The Committee of Creditors Holding Unsecured Claims appointed in the bankruptcy case of Life Care St. Johns, Inc., is represented by Akerman Senterfitt's David E. Otero, Esq., and Christian P. George, Esq., in Jacksonville, Florida. Bruce Jones signed the petition as CEO. The Debtor estimated assets of at least $10 million and debts of at least $50 million. LIFE UNIFORM: Littler Mendelson Approved as Special ERISA Counsel ----------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized Life Uniform Holding Corp., et al., to employ Littler Mendelson P.C. as special ERISA counsel. As reported in the Troubled Company Reporter on Aug. 5, 2013, Littler Mendelson will, among other things: -- advise on the termination of any employee benefit plans, including, but not limited to, a 401(k) plan and welfare benefit arrangement; -- advise on purchase agreement regarding employee benefit plan sponsored by the Debtors; and -- make communications with Trustee, the Debtors, the Debtors' counsel, buyer, buyer's counsel and service providers regarding the termination of any employee benefit plans. The hourly rates of Littler Mendelson's personnel are: Shareholders $480 - $660 Of Counsel Associates $340 - $500 Paraprofessionals $285 To the best of the Debtors' knowledge, Littler Mendelson is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Life Uniform Life Uniform was founded in 1965 when Angelica Corporation decided to enter the retail uniform industry. The first Life Uniform store opened in 1965 in Clayton, Missouri. At present, Life Uniform is the nation's largest independently owned medical professional supplier. Sun Uniform LLC acquired Life Uniform in July 2004. Since the acquisition by Sun the company addressed sagging profitability and overhead issues and quickly drove increases in profitability through a combination of store rationalization and sensible corporate overhead initiatives. However, recent performance has been declining in terms of revenue. This is due to the company's liquidity issues, which prevented the company from completing its e-commerce system upgrade, encourage better pricing from vendors, and maintain sufficient capital. Life Uniform Holding Corp., Healthcare Uniform Company, Inc., and Uniform City National Inc. filed Chapter 11 petitions (Bankr. D. Del. Case Nos. 13-11391 to 13-11393) on May 29, 2013. The petitions were signed by Bryan Graiff, COO, CFO, VP, secretary, and treasurer. Life Uniform Holding disclosed $10,695,870 in assets and $36,821,034 in liabilities as of the Chapter 11 filing. Life Uniform and Uniform City received court authority on July 26 to sell the business for $22.6 million to Scrubs & Beyond LLC. There were no competing bids, so an auction wasn't held. First lien lender CapitalSource Finance LLC is owed on a $11.5 million revolver and $26 million term loan. CapitalSource is represented by Brian T. Rice, Esq., at Brown Rudnick LLP; and Jeffrey C. Wisler, Esq., at Connolly Gallagher LLP. Sun Uniforms Finance LLC is owed $6.1 million in principal on a second lien note and holds two additional notes, each in the original principal of $1.08 million. Angelica Corp. holds an unsecured junior subordinate not in the principal amount of $5.48 million. Domenic E. Pacitti, Esq., at Klehr Harrison Harvey Branzburg, LLP, serves as the Debtors' counsel. Epiq Bankruptcy Solutions acts as the Debtors' administrative agent, and claims and noticing agent. The Debtors' financial advisor is Capstone Advisory Group, LLC. The Official Committee of Unsecured Creditors is represented by Seth Van Aalten, Esq., at Cooley LLP, and Ann M. Kashishian, Esq., at Cousins Chipman & Brown, LLP as counsel. The U.S Trustee for Region 3 appointed Boris Segalis of InfoLawGroup LLP as consumer privacy ombudsman in the case. LIFE UNIFORM: Creditors Have Until Oct. 4 to File Proofs of Claim ----------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware established Oct. 4, 2013, at 4 p.m., as the deadline for any individual or entity to file proofs of claim against Life Uniform Holding Corp., et al. The Court also set Nov. 27, at 4 p.m. as the governmental unit bar date. Proofs of claim must be submitted to: if by mail: Life Uniform Holding Corp. Claims Processing Center c/o Epiq Bankruptcy Solutions, LLC FDR Station, P.O. Box 5285 New York, NY 10150-5285 if by hand: Life Uniform Holding Corp. Claims Processing Center c/o Epiq Bankruptcy Solutions, LLC 757 Third Avenue, 3rd Floor New York, NY 10017 The Debtor's counsel can be reached at: Domenic E. Pacitti, Esq. KLEHR HARRISON HARVEY BRANZBURG LLP 919 N. Market Street, Suite 1000 Wilmington, DE 19801 Tel: (302) 426-1189 Fax: (302) 426-9193 About Life Uniform Life Uniform was founded in 1965 when Angelica Corporation decided to enter the retail uniform industry. The first Life Uniform store opened in 1965 in Clayton, Missouri. At present, Life Uniform is the nation's largest independently owned medical professional supplier. Sun Uniform LLC acquired Life Uniform in July 2004. Since the acquisition by Sun the company addressed sagging profitability and overhead issues and quickly drove increases in profitability through a combination of store rationalization and sensible corporate overhead initiatives. However, recent performance has been declining in terms of revenue. This is due to the company's liquidity issues, which prevented the company from completing its e-commerce system upgrade, encourage better pricing from vendors, and maintain sufficient capital. Life Uniform Holding Corp., Healthcare Uniform Company, Inc., and Uniform City National Inc. filed Chapter 11 petitions (Bankr. D. Del. Case Nos. 13-11391 to 13-11393) on May 29, 2013. The petitions were signed by Bryan Graiff, COO, CFO, VP, secretary, and treasurer. Life Uniform Holding disclosed $10,695,870 in assets and $36,821,034 in liabilities as of the Chapter 11 filing. Life Uniform and Uniform City received court authority on July 26 to sell the business for $22.6 million to Scrubs & Beyond LLC. There were no competing bids, so an auction wasn't held. First lien lender CapitalSource Finance LLC is owed on a $11.5 million revolver and $26 million term loan. CapitalSource is represented by Brian T. Rice, Esq., at Brown Rudnick LLP; and Jeffrey C. Wisler, Esq., at Connolly Gallagher LLP. Sun Uniforms Finance LLC is owed $6.1 million in principal on a second lien note and holds two additional notes, each in the original principal of $1.08 million. Angelica Corp. holds an unsecured junior subordinate not in the principal amount of $5.48 million. Domenic E. Pacitti, Esq., at Klehr Harrison Harvey Branzburg, LLP, serves as the Debtors' counsel. Epiq Bankruptcy Solutions acts as the Debtors' administrative agent, and claims and noticing agent. The Debtors' financial advisor is Capstone Advisory Group, LLC. The Official Committee of Unsecured Creditors is represented by Seth Van Aalten, Esq., at Cooley LLP, and Ann M. Kashishian, Esq., at Cousins Chipman & Brown, LLP as counsel. The U.S Trustee for Region 3 appointed Boris Segalis of InfoLawGroup LLP as consumer privacy ombudsman in the case. LIFECARE HOLDINGS: Defends Gifts to Some Creditors -------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that former hospital owner LifeCare Holdings Inc. and its creditors' committee are defending the ability of buyers to make "gifts" to some creditors of bankrupt companies while excluding others. According to the report, the dispute will be decided by U.S. District Judge Sue L. Robinson in Delaware. Although her decision may go higher on appeal, the outcome will determine whether unsecured creditors of bankrupt companies continue receiving small recoveries when strict adherence to bankruptcy law might give them nothing in some cases. The report discloses that the U.S. Justice Department, on behalf of the Internal Revenue Service, appealed to Judge Robinson from the bankruptcy court's approval of a $360 million sale of LifeCare's business in exchange for debt owing to secured creditors. As the result of a settlement between the lenders and the unsecured creditors' committee, $3.5 million was carved out in June exclusively for unsecured creditors. The report relates that the IRS objected, because nothing would be left to pay a $24 million gains tax owing to the government. The government says priority tax claims must be paid in full under bankruptcy law before unsecured creditors are entitled to anything. The government filed its brief in late July. LifeCare and the committee filed their opposing briefs last week. According to the report, the company and the creditors contend Judge Robinson is barred from deciding the "gift" question because Section 363(m) of the U.S. Bankruptcy Code precludes an appeal. That section says that a sale of a bankrupt property can't be upset on appeal unless the lower court's order was stayed pending appeal. Although the government sought a stay, none was granted. Since then, $2 million of the $3.5 million has been distributed, the creditors and the company say. Consequently, they believe Judge Robinson is compelled to throw out the appeal because it would entail setting aside part of the sale, the report discloses. Mr. Rochelle relates that if Judge Robinson reaches the "gift" question, LifeCare and the creditors have two major arguments. First, they say the payments were being made as part of a sale, not under a plan of reorganization. They believe strictures on distribution to creditors don't apply to a sale. Second, they say the money earmarked for creditors belonged to the buyers and thus wasn't property of the bankrupt estate. Because it's non-estate property, rules on distribution of bankrupt estates don't apply, they say. The government will file its final brief on Sept. 9. Judge Robinson may decide the question by the year's end. The settlement was designed to give unsecured LifeCare creditors $1.5 million from which they estimate having a 7.5 percent cash recovery. The settlement gave $2 million cash to subordinated noteholders, for a 1.7 percent recovery. The senior lenders provided another $150,000 for the creditors' lawyers. The lenders were owed about $355 million on a secured credit facility with JPMorgan Chase Bank NA as agent. About LifeCare LCI Holding Company, Inc., and its affiliates, doing business as LifeCare Hospitals, operate eight "hospital within hospital" facilities and 19 freestanding facilities in 10 states. The hospitals have about 1,400 beds at facilities in Louisiana, Texas, Pennsylvania, Ohio and Nevada. LifeCare is controlled by Carlyle Group, which holds 93.4% of the stock following a $570 million acquisition in August 2005. LCI Holding Company, Inc., and its affiliates, including LifeCare Holdings Inc., sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 12-13319) on Dec. 11, 2012, with plans to sell assets to secured lenders. Ken Ziman, Esq., and Felicia Perlman, Esq., at Skadden, Arps, Slate Meagher & Flom LLP, serve as counsel to the Debtors. Rothschild Inc. is the financial advisor. Huron Management Services LLC will provide the Debtors an interim chief financial officer and certain additional personnel; and (ii) designate Stuart Walker as interim chief financial officer. The steering committee of lenders is represented by attorneys at Akin Gump Strauss Hauer & Feld LLP and Blank Rome LLP. The agent under the prepetition and postpetition secured credit facility is represented by Simpson Thacher & Barlett LLP. The Debtors disclosed assets of $422 million and liabilities totaling $575.9 million as of Sept. 30, 2012. As of the bankruptcy filing, total long-term obligations were $482.2 million consisting of, among other things, institutional loans and unsecured subordinated loans. A total of $353.4 million is owing under the prepetition secured credit facility. A total of $128.4 million is owing on senior subordinated notes. LifeCare Hospitals of Pittsburgh, LLC, a debtor-affiliate disclosed $24,028,730 in assets and $484,372,539 in liabilities as of the Chapter 11 filing. The Official Committee of Unsecured Creditors is represented by Pachulski Stang Ziehl & Jones LLP. FTI Consulting, Inc., serves as its financial advisor. LIGHTSQUARED INC: Harbinger Files Chapter 11 Reorganization Plan ---------------------------------------------------------------- Harbinger Capital Partners LLC on Friday filed a Chapter 11 plan of reorganization, which calls for full payment of claims against LightSquared Inc. and its affiliated debtors. The plan filed by Philip Falcone's investment firm proposes to pay in full all creditors and equity holders through the distribution of new unsecured notes issued by LightSquared Inc. as well as cash and new secured notes issued by the holdings company and LightSquared LP. Under the proposed plan, administrative and priority tax claims estimated at $25 million, and debtor-in-possession facility claims estimated at $66 million are not classified, and would be paid in full. All other claims and equity interests estimated at $3.206 billion are classified. Holders of LightSquared LP's preferred shares and lenders who provided $1.5 billion secured bank loan to the company would receive full payment, which is subject to the outcome of the lawsuit filed by Harbinger against Dish Network Corp. Chairman Charlie Ergen over allegedly improper purchases of LightSquared's debt. Full-text copies of Harbinger's proposed plan and disclosure statement are available for free at: http://bankrupt.com/misc/LightSquared_PlanHarbinger.pdf http://bankrupt.com/misc/LightSquared_DSHarbinger.pdf Unlike the two other proposals from LightSquared and a group of lenders, Harbinger's plan contemplates the "global reorganization of all of the debtors" rather than a sale of their assets, according to its lawyer, David Friedman, Esq., at Kasowitz Benson Torres & Friedman LLP, in New York. Mr. Friedman also said the Harbinger plan "offers the quickest and best path" to obtain approval from the Federal Communications Commission as it does not depend on a sale of the spectrum assets. Pursuant to the Harbinger plan, LightSquared Inc. and its affiliated debtors will continue to exist after the effective date of the plan as separate entities, and will maintain their pre- bankruptcy organizational structure. The board of directors of the reorganized LightSquared Inc. will consist of seven directors, subject to the terms of the financing facility that will be provided as of the effective date of the Harbinger plan. The amount of the exit facility will be determined by Harbinger and the lenders but, in all cases, will be in an amount not less than $500 million. The investment firm has already reached an agreement with Melody Capital Advisors LLC, as lead Arranger, in connection with the exit financing. LightSquared Inc. and its affiliated debtors, at their option, may access $190 million of the exit facility prior to Dec. 15 as debtor-in-possession financing to continue their operations through June 30, 2014. Harbinger Seeks Approval of Plan Outline Harbinger is asking U.S. Bankruptcy Judge Shelley Chapman to approve the outline of its plan or the so-called disclosure statement, saying it satisfies the requirements of section 1125 of the Bankruptcy Code. The provision requires that a disclosure statement contain adequate information to permit voting creditors to make an informed decision on a bankruptcy plan. Harbinger's proposed disclosure statement will be considered for approval, together with the outline of the plans proposed by LightSquared and the lenders group, at the Sept. 30 hearing. Mr. Friedman can be reached at: Kasowitz Benson Torres & Friedman LLP 1633 Broadway New York, New York 10019 Tel: (212) 506-1700 Fax: (212) 506-1800 Email: dfriedman@kasowitz.com About LightSquared Inc. LightSquared Inc. and 19 of its affiliates filed Chapter 11 bankruptcy petitions (Bankr. S.D.N.Y. Lead Case No. 12-12080) on May 14, 2012, to resolve regulatory issues that have prevented it from building its coast-to-coast integrated satellite 4G wireless network. LightSquared had invested more than $4 billion to deploy an integrated satellite-terrestrial network. In February 2012, however, the U.S. Federal Communications Commission told LightSquared the agency would revoke a license to build out the network as it would interfere with global positioning systems used by the military and various industries. In March 2012, the Company's partner, Sprint, canceled a master services agreement. LightSquared's lenders deemed the termination of the Sprint agreement would trigger cross-defaults under LightSquared's prepetition credit agreements. LightSquared and its prepetition lenders attempted to negotiate a global restructuring that would provide LightSquared with liquidity and runway necessary to resolve its issues with the FCC. Despite working diligently and in good faith, however, LightSquared and the lenders were not able to consummate a global restructuring on terms acceptable to all interested parties. Lawyers at Milbank, Tweed, Hadley & McCloy LLP serve as counsel to the Debtors. Alvarez & Marsal North America, LLC, is the financial advisor. Kurtzman Carson Consultants LLC serves as claims and notice agent. LIME ENERGY: Fails to Meet $2.5MM Min. Stockholders' Equity ----------------------------------------------------------- Lime Energy Co., on Aug. 20, 2013, received a letter from NASDAQ notifying the Company that it was not in compliance with Listing Rule 5550(b) because the Company's stockholders' equity, as reported in the Company's quarterly report on Form 10-Q for the period ended June 30, 2013, as filed on Aug. 19, 2013, was less than $2,500,000, a NASDAQ Capital Market continued listing criterion, and the Company did not meet either of the alternative NASDAQ Capital Market continued listing criteria -- market value of listed securities or net income from continuing operations -- as of Aug. 19, 2013. The Stockholders' Equity Deficiency may serve as an additional basis for the delisting of the Company's common stock from NASDAQ. That letter also formally notified the Company that the Panel would consider the Stockholders' Equity Deficiency in their decision regarding the Company's continued listing on NASDAQ. The Company provided the Panel with a compliance plan related to the Minimum Bid price Deficiency on Aug. 19, 2013, which provides for the Company to effect a reverse stock split by Sept. 30, 2013, if necessary to regain compliance with Listing Rule 5450(a)(1). In that plan, the Company also notified the Panel of its non- compliance with Listing Rule 5550(b). To remedy the Stockholders' Equity Deficiency, the Company has had, and continues to have, discussions with some of the holders of its outstanding subordinated secured convertible pay-in-kind notes. Based on those discussions, the Company expects that some of those outstanding notes will be exchanged for preferred stock and that some of the Noteholders will purchase additional preferred stock in a private placement. If the Company is unable to complete those transactions, or otherwise raise capital, or if the proceeds of those transactions are not sufficient to remedy the Stockholders' Equity Deficiency, the Company's common stock may be delisted from NASDAQ. If the Company is able to complete the exchange and sale, it may be on terms that are not favorable to it or its existing stockholders. In its submission to the Panel on Aug. 19, 2013, the Company updated the Panel regarding its discussions with the Noteholders and its plans to raise capital or convert debt to equity, and committed to providing the Panel with additional information regarding its plan to raise capital or convert equity to debt by Aug. 30, 2013. The Panel's Letter continued the listing of the Company's common stock on NASDAQ, pending receipt of that additional information. If the Company does not timely remedy the Minimum Bid Price Deficiency or the Stockholders' Equity Deficiency, the Company's common stock may be delisted from NASDAQ. Lime Energy previously received four deficiency notices from The NASDAQ Stock Market LLC for failure to comply with NASDAQ Listing Rule 5250(c)(1) because the Company did not timely file its quarterly reports on Form 10-Q for the quarters ended June 30, 2012, Sept. 30, 2012, and March 31, 2013, and its annual report on Form 10-K for the year ended Dec. 31, 2012. In connection with the first two of those deficiencies, the Company received a determination letter from the NASDAQ Listing Qualifications Staff on Jan. 9, 2013, advising that, because those deficiencies had not yet been cured, trading in the Company's common stock would be subject to suspension and the Company's securities could be removed from listing and registration on The NASDAQ Stock Market absent a request for a hearing before the NASDAQ Hearings Panel. Pursuant to the Company's request, on Feb. 21, 2013, the Panel held a hearing to review the listing determination and to consider the Company's request for additional time to regain compliance. On March 6, 2013, the Panel granted the Company's request for continued listing on NASDAQ, subject to the Company satisfying certain conditions relating to the filing of the Delinquent Reports, which conditions were modified by the Panel on July 2, 2013. The Company timely satisfied all of the Panel's conditions, as modified, and on Aug. 21, 2013, received a letter from the Panel confirming that the Company had regained compliance with Listing Rule 5250(c)(1), but informing the Company that the Panel would retain jurisdiction over the Company's continued listing on The NASDAQ Stock Market. As previously disclosed, on Aug. 29, 2012, the Company received a letter from NASDAQ, notifying the Company that for the previous 30 consecutive business days, the bid price of the Company's common stock had closed below the minimum $1.00 per share requirement for continued inclusion on NASDAQ, as set forth in Listing Rule 5450(a)(1). NASDAQ granted the Company two consecutive grace periods of 180 days each to remedy the Minimum Bid Price Deficiency, the second of which will expire on Aug. 26, 2013. About Lime Energy Huntersville, N.C.-based Lime Energy Co. designing and implementing energy efficiency programs that enable the Company's utility clients to reach their underserved markets and achieve their energy reduction goals. The Company's balance sheet at March 31, 2013, showed $32.4 million in total assets, $29.6 million in total liabilities, and stockholders' equity of $2.8 million. BDO USA, LLP, in Chicago, in their audit report on Lime Energy's financial statements for the year ended Dec. 31, 2012, said that the Company's recurring losses and negative cash flow from operations raise substantial doubt about its ability to continue as a going concern. LONGVIEW POWER: Kvaerner Says Exposure to Bankruptcy Unclear ------------------------------------------------------------ Reuters reports that Norwegian industrial group Kvaerner, which was involved in the construction of the $2-billion Longview coal power plant in the U.S., said on Monday it was unclear how it would be hit financially by the plant's bankruptcy. Longview Power LLC along with affiliates, including Mepco Holdings, LLC and its affiliates, commenced Chapter 11 proceedings (Bankr. D. Del. Lead Case No. 13-12211) on Aug. 30, 2013. Longview Power, majority-owned by First Reserve Corp, a private investment firm, listed liabilities and assets of more than $1 billion. Longview Power blamed a unit of Germany's Siemens for delays in construction that left it unable to pay its debts. Bankruptcy Judge Brendan Linehan Shannon oversees the case. Richard M. Cieri, Esq., Paul M. Basta, P.C., Esq., Ray C. Schrock, P.C., Esq., and Ryan Preston Dahl, Esq., at Kirkland & Ellis LLP, serve as the Debtors' counsel. Daniel J. DeFranceschi, Esq., Paul N. Heath, Esq., Zachary I. Shapiro, Esq., Amanda R. Steele, Esq., and Marisa A. Terranova, Esq., at Richards, Layton & Finger, P.A., serve as Delaware counsel. David A. Pisciotta, Esq., Scott E. Koerner, Esq., David Farrington Yates, Esq., Phillip R. White, Esq., and David W. Kiefer, Esq., at Dentons US LLP, serve as special counsel. Lazard Freres & Company LLC is the Debtors' invesetment banker, Alvarez & Marsal North America, LLC, is the Debtors' restructuring advisor, Ernst & Young acts as accountants, and Donlin, Recano & Co., Inc., serves as the claims agent. The petitions were signed by Jeffery L. Keffer, the Company's Chief Executive Officer, President, Treasurer and Secretary. MACROSOLVE INC: Posts $12,600 Net Income in Second Quarter ---------------------------------------------------------- Macrosolve, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing net income of $12,671 on $302,253 of net revenues for the quarter ended June 30, 2013, as compared with a net loss of $779,434 on $206,275 of net revenues for the same period last year. For the six months ended June 30, 2013, the Company reported net income of $230,820 on $968,351 of net revenues, as compared with a net loss of $1.48 million on $905,507 of net revenues for the same period a year ago. 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 June 30, 2013, showed $1.78 million in total assets, $1.01 million in total liabilities and $773,419 in total stockholders' equity. "The year-to-date financial results are positive in all respects," stated Kendall Carpenter, CFO. "We are running a lean operation, growing cash, reducing debt and increasing equity investments in our mobile app venture customers, a successful execution of our 2013 business strategy." A copy of the Form 10-Q is available for free at: http://is.gd/uD8wVj 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. MANAGEMENT SOLUTIONS: Judges Approves Receiver's Liquidation Plan ----------------------------------------------------------------- Tom Harvey at The Salt Lake Tribune reports that U.S. District Judge Bruce Jenkins on August 26 took a major step to resolving one of Utah's largest financial frauds, approving a plan to sell off tens of millions of dollars in property owned by a Fountain Green-based real estate management company. According to the report, Judge Jenkins again rejected an alterative plan proposed by about 200 investors who had put more than $200 million into Management Solutions Inc. The judge instead gave his OK to a proposal by a court-appointed receiver to sell off dozens of properties, consisting largely of apartment buildings in various states, to the highest bidders, the report relates. He also authorized the engagement of a real estate broker to manage the sales, which could include bids by investors who believe the liquidation plan approved by the judge will cost them tens of millions of dollars, The Salt Lake Tribune reports. The report says Management Solutions and father and son owners Wendell and Allen Jacobson were sued in December 2011 by the Securities and Exchange Commission that alleged the company was insolvent and that the owners had lied to or withheld important information from investors and had operated the business as a Ponzi scheme. As reported in the TCR on Dec. 27, 2011, at the behest of the U.S. Securities and Exchange Commission, District Judge Bruce S. Jenkins in Utah appointed John A. Beckstead of Holland & Hart LLP to serve without bond as receiver for the estates of Management Solutions, Inc., Parkwood Management Company, LLC, and Starwood Management Company, as well as all assets of individuals Wendell Jacobson and Allen Jacobson. The receiver may choose to place those entities in bankruptcy. The case is SECURITIES AND EXCHANGE COMMISSION, v. MANAGEMENT SOLUTIONS, INC., a Texas Corporation; WENDELL A. JACOBSON, and ALLEN R. JACOBSON, Case No. 4:11-mc- 03069-UNA (D. Utah). A copy of the Court's Dec. 22, 2011 Order is available at http://is.gd/yMObEKfrom Leagle.com. MAXCOM TELECOM: Banco Invex, et al., Submit Purchase Proposal ------------------------------------------------------------- Ventura Capital Privado, S.A. de C.V., a sociedad anonima de capital variable, organized and existing under the laws of the United Mexican States announced that Banco Invex S.A., Institucion de Banca Multiple, Invex Grupo Financiero, a banking institution organized and existing under the laws of the United Mexican States, as Trustee for the Trust 1387, Ventura Capital, Javier Molinar Horcasitas and Enrique Castillo Sanchez Mejorada have made an offer in the U.S. to purchase: (i) all of the outstanding Series A common stock, without par value of Maxcom Telecomunicaciones, S.A.B. de C.V., at a price of Ps. 0.9666 per Share; (ii) all of the outstanding Ordinary Participation Certificates ("CPOs") of Maxcom, at a price of Ps. 2.90 per CPO; and (iii) all of the outstanding American Depository Shares of Maxcom ("ADSs" and collectively with the Shares and CPOs, the Securities"), at a price of Ps. 20.30 per ADS, in each case held by persons who are not Mexican residents. Each ADS represents seven CPOs. Each CPO represents three Shares. The U.S. Equity Offer will expire at 12:00 midnight, New York City time (11:00 p.m., Mexico City time) on Sept. 26, 2013, unless extended by the Purchasers. Simultaneously with the commencement of the U.S. Equity Offer, the Purchasers are offering to purchase all of the outstanding Shares and CPOs of Maxcom in Mexico, in each case, including those held by U.S. residents. A copy of the Offer to Purchase is available for free at: http://is.gd/lVzDsg About Maxcom Maxcom Telecomunicaciones, S.A.B. de C.V., headquartered in Mexico City, Mexico, is a facilities-based telecommunications provider using a "smart-build" approach to deliver last-mile connectivity to micro, small and medium-sized businesses and residential customers in the Mexican territory. Maxcom launched commercial operations in May 1999 and is currently offering local, long distance, data, value-added, paid TV and IP-based services on a full basis in greater metropolitan Mexico City, Puebla, Tehuacan, San Luis, and Queretaro, and on a selected basis in several cities in Mexico. In June 2013, Maxcom didn't make an $11 million interest payment on the notes. Maxcom sought bankruptcy protection (Bankr. D. Del. Case No. 13-11839) in Wilmington, Delaware, on July 23, 2013. Maxcom listed $11.1 billion in assets and $402.3 million in debt. The company had assets valued at 4.98 billion pesos ($394 million) in the quarter ended March 31, according to an April 26 regulatory filing. The company reached a restructuring agreement with Ventura Capital, a group holding about $86 million, or 48.7 percent, of the senior notes and about 44 percent of its equity holders, court papers show. The Company has engaged Lazard Freres & Co. LLC and its alliance partner Alfaro, Davila y Rios, S.C., as its financial advisor and Kirkland & Ellis LLP and Santamarina y Steta, S.C. as its U.S. and Mexican legal advisors in connection with its restructuring proceedings and potential Chapter 11 case. The Ad Hoc Group has retained Cleary Gottlieb Steen & Hamilton LLP and Cervantes Sainz, S.C., as its U.S. and Mexican legal advisors. Ventura has retained VACE Partners as its financial advisor, and Paul Hastings LLP and Jones Day as its U.S. and Mexican legal advisors, respectively. MMRGLOBAL INC: Amends Charter to Hike Authorized Shares to 1.2BB ---------------------------------------------------------------- The stockholders of MMRGlobal, Inc., on July 17, 2013, approved an amendment to the Company's Amended and Restated Certificate of Incorporation to increase the number of authorized shares of common stock from 950,000,000 to 1,250,000,000. The Company submitted the Charter Amendment to the Delaware Secretary of State's office on Aug. 20, 2013, and the Charter Amendment became effective on the same day. About MMRGlobal Los Angeles, Calif.-based MMR Global, Inc. (OTC BB: MMRF) -- http://www.mmrglobal.com/-- through its wholly-owned operating subsidiary, MyMedicalRecords, Inc., provides secure and easy-to- use online Personal Health Records (PHRs) and electronic safe deposit box storage solutions, serving consumers, healthcare professionals, employers, insurance companies, financial institutions, and professional organizations and affinity groups. The Company's balance sheet at March 31, 2013, showed $2.25 million in total assets, $9.04 million in total liabilities and a $6.79 million total stockholders' deficit. MMRGlobal incurred a net loss of $5.90 million in 2012, as compared with a net loss of $8.88 million in 2011. Rose, Snyder & Jacobs LLP, in Encino, California, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has incurred significant operating losses and negative cash flows from operations during the years ended Dec. 31, 2012, and 2011, that raise substantial doubt about the Company's ability to continue as a going concern. MONARCH COMMUNITY: Shareholders Elect Three Directors ----------------------------------------------------- Monarch Community Bancorp, Inc., held its annual meeting of shareholders on Aug. 20, 2013, at which the shareholders elected Craig W. Dally, Richard J. DeVries and Richard L. Dobbins as directors, each for a three-year term to expire in 2016. The stockholders approved the executive compensation of the Company and ratified the appointment of Plante & Moran, PLLC, as the Company's independent auditors for the fiscal year ending Dec. 31, 2013. About Monarch Community Coldwater, Michigan-based Monarch Community Bancorp, Inc., was incorporated in March 2002 under Maryland law to hold all of the common stock of Monarch Community Bank, formerly known as Branch County Federal Savings and Loan Association. The Bank converted to a stock savings institution effective Aug. 29, 2002. In connection with the conversion, the Company sold 2,314,375 shares of its common stock in a subscription offering. Plante & Moran, PLLC, in Auburn Hills, Michigan, expressed substantial doubt about Monarch Community's ability to continue as a going concern. The independent auditors noted that the Corporation has suffered recurring losses from operations and as of Dec. 31, 2011, did not meet the minimum capital requirements as established by the regulators. The Corporation reported a net loss of $353,000 on $6.8 million of net interest income (before provision for loan losses) in 2011, compared with a net loss of $10.9 million on $7.5 million of net interest income (before provision for loan losses) in 2010. Total non-interest income was $4.0 million for 2011, compared with $3.7 million for 2010. The Company's balance sheet at Dec. 31, 2011, showed $208.1 million in total assets, $197.0 million in total liabilities, and stockholders' equity of $11.1 million. MONTREAL MAINE: Expedited Request Made for Committee ---------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that a request was lodged at the end of last week for expedited appointment of an official committee to represent those who suffered damage in the Montreal Maine & Atlantic Railway Ltd. disaster. Representatives of 18 individuals killed in the disaster filed papers in bankruptcy court on Aug. 22 seeking appointment of an official committee to represent wrongful-death claimants. The hearing on the motion is scheduled for Oct. 3. On Aug. 30, the Quebec provincial government, the municipal government in Lac-Megantic, Quebec, and representatives of class plaintiffs filed their own request for appointment of a victims' committee. They want the court to hold an expedited hearing on Sept. 13 to call for appointment of the panel. The governments want a committee appointed quickly because they say important events will take place before the Oct. 3 hearing. About Montreal Maine 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. Robert J. Keach, Esq., at Bernstein Shur, has been named as chapter 11 trustee. 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. MONTREAL MAINE: U.S. Court Asked to Handle Victims' Compensation ---------------------------------------------------------------- Judy Harrison, writing for Bangor Daily News, reported that a federal bankruptcy judge could decide how much compensation families of the victims killed by the train crash in Lac-Megantic, Quebec, receive. According to the report, a motion filed last month in the Montreal, Maine and Atlantic Railway's bankruptcy petition asked U.S. Bankruptcy Judge Louis Kornrich to appoint a committee to represent wrongful death and personal injury claimants. If the railroad agreed to allowing the bankruptcy court to handle compensation to victims, the company could avoid dealing with dozens of individual wrongful death lawsuits with "verdicts totalling hundreds of millions of dollars," Bangor lawyer George Kurr said in the motion, the report related. MMA filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court in Bangor and in Canada on Aug. 7, a month after one of its trains rolled driverless down a hill before derailing in the middle of the town of Lac-Megantic, causing a fiery explosion that killed 47 people, the report recalled. The estates of 33 of the victims, which have filed lawsuits against the railroad in Canada, joined in submitting the motion, the report said. Forming a committee to make recommendations about compensation to the judge would be the fairest way to represent their interests, which are different than the interests of other creditors, Kurr wrote. 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. Robert J. Keach, Esq., at Bernstein Shur, has been named as chapter 11 trustee. 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. MW GROUP: Hearing on Collateral Valuation Continued to Oct. 2 ------------------------------------------------------------- The Bankruptcy Court has continued the hearing on the motion of MW Group LLC for valuation of collateral to Oct. 2, 2013, at 9:30 a.m. As reported by the TCR on June 13, 2013, the Debtor sought the valuation of the collateral to determine the value of the claim of Bank of America, N.A., secured by property of the estate for the purposes of plan confirmation. Bank of America asserts that as of the Petition Date, it was owed $5,201,057 in unpaid principal, $443,938 in accrued and unpaid interest, and $80,424 in legal fees and costs. Based upon appraisals conducted by Bidencope & Associates, the Debtor contends that the fair market value of the Bank of America collateral is $10,614,000. About MW Group Charlotte, North Carolina-based MW Group LLC filed for Chapter 11 bankruptcy (Bankr. W.D.N.C. Case No. 11-32674) on Oct. 21, 2011. The Debtor scheduled assets of $10.32 million and liabilities of $8.42 million. Donald R. James signed the petition as manager. The Debtor's assets consist of 36.5 acres of vacant land, 48 condo units for rent, and 200 apartments known as Weyland and Weyland II, located in Charlotte, Mecklenburg County, North Carolina. No official committee of unsecured creditors has been appointed in the case. MW GROUP: Disclosure Statements Hearing Moved to October 16 ----------------------------------------------------------- The Bankruptcy Court has continued the hearing on the approval of the disclosure statement with respect to the Chapter 11 plan filed by creditor Bank of America, N.A., and the disclosure statement filed by MW Group, LLC, to Oct. 16, 2013, at 9:30 a.m. About MW Group Charlotte, North Carolina-based MW Group LLC filed for Chapter 11 bankruptcy (Bankr. W.D.N.C. Case No. 11-32674) on Oct. 21, 2011. The Debtor scheduled assets of $10.32 million and liabilities of $8.42 million. Donald R. James signed the petition as manager. The Debtor's assets consist of 36.5 acres of vacant land, 48 condo units for rent, and 200 apartments known as Weyland and Weyland II, located in Charlotte, Mecklenburg County, North Carolina. No official committee of unsecured creditors has been appointed in the case. NEXTIO INC: Shuts Doors After 10 Years, Set to File for Chapter 7 ----------------------------------------------------------------- Kirk Ladendorf at Austin American-Statesman reports that NextIO Inc., an Austin startup that developed networking technology for data centers, has closed its doors after 10 years in business. The report relates that NextIO's CEO K.C. Murphy said the company was funding its operations through a loan, and the bank that held the loan asked for repayment, forcing the company's shutdown. According to the report, the company had attracted $70 million in investment over the years and had drawn interest from major tech companies including IBM Corp. and Dell Inc., but its sales collapsed late last year. Mr. Murphy said the company attempted to attract a buyer this year, but could not get a sale closed despite extensive negotiations with Dell Inc. and Samsung Electronics, the American-Statesman relays. The company had 70 employees at its peak last year, and was at about 35 employees when it ceased operations, the report notes. NextIO started as a networking chip company and then shifted toward a systems company that developed technology to simplify big computer networks inside data centers, the report discloses. Austin American-Statesman reports that Mr. Murphy said the company succeeded in developing products that could cut costs and improve efficiency in data networks, but it had a hard time winning acceptance from U.S.-based companies, who he said take a risk- averse approach toward the equipment it uses in data centers. The company had better luck in Europe, where customers were willing to try its technology out and buy some. "North America is incredibly risk-averse," the report quotes Mr. Murphy as saying. "U.S. companies are unwilling to commit to anything" that isn't guaranteed by Cisco Systems, the sales leader in networking equipment." The report relates that Mr. Murphy said he expects the company will file for a Chapter 7 liquidation bankruptcy in which the main asset will be its intellectual property. He expects to assist with the liquidation process, Austin American-Statesman adds. NNN 3500 MAPLE 26: 18-Story Dallas Tower Owner Files Again ---------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the 18-story office tower at 3500 Maple Avenue on the north side of downtown Dallas is back in Chapter 11, again to forestall imminent foreclosure. The report recounts that one of the many owners of the property filed for bankruptcy reorganization in California in November, just before scheduled foreclosure on a mortgage in the original principal amount of $47 million. The California judge sent the case to Dallas. In May the Dallas bankruptcy judge granted the lender permission to foreclose, saying the owners had no equity in the property. One of the owners had filed a proposed Chapter 11 plan. The judge found the plan lacking because not all owners had submitted themselves to the bankruptcy court. The report relates that on Aug. 29, 27 of the 33 owners, representing 82.5 percent of the equity in the building, filed separate Chapter 11 petitions in Dallas. The new filing was designed to halt foreclosure scheduled for Sept. 3. The owners say they intend to file a reorganization plan accompanied by capital investments to renovate the glass-clad tower built in 1985. About 40 percent of the space is vacant, according to the broker's website. The prior case is In re NNN 3500 Maple 26 LLC, 13-30401, U.S. Bankruptcy Court, Northern District of Texas (Dallas). The first- filed among the new cases is NNN 3500 Maple 1 LLC, 13-34362, in the same court. NNN CYPRESSWOOD: Wants Exclusive Periods Extended Until Oct. 27 --------------------------------------------------------------- NNN Cypresswood Drive 25 LLC asks the U.S. Bankruptcy Court for the Northern District of Illinois to extend until Oct. 27, 2013, its exclusive periods to file and solicit acceptances for the Chapter 11 Plan. The Court will convene a hearing on Sept. 11, 2013, at 10:30 a.m., to consider the Debtor's request for exclusivity extension. The Debtor has already filed a Plan and Disclosure Statement. The Debtor explains that cause exists for an extension of its exclusive right to file an amended plan or confirm the current Plan because an appeal is pending before the District Court. The District Court's ruling on the appeal will determine whether the Plan as constituted is confirmable or whether the Debtor will be required to file an amended plan with the Court. The Debtor notes that the Bankruptcy Court entered an order denying the motion of WBCMT to continue the foreclosure proceeding against all of the non-Debtor tenant in common (TICs), including the participating TICs; and allowing WBCMT to pursue its remedies under state law against the non-Debtor TICs, including, but not limited to, the continuation of the foreclosure proceeding. About NNN Cypresswood Drive NNN Cypresswood Drive 25, LLC, filed a Chapter 11 petition (Bankr. N.D. Ill. Case No. 12-50952) on Dec. 31, 2012, in Chicago. The Debtor, a Single Asset Real Estate as defined in 11 U.S.C. Sec. 101(51B), has principal assets located at 9720 & 9730 Cypresswood Drive, in Houston, Texas. The Debtor valued its assets and liabilities at less than $50 million. In its schedules, the Debtor disclosed assets of Unknown amount and $35,181,271 in liabilities as of the Chapter 11 filing. Michael L. Gesas, Esq., at Arnstein & Lehr LLP, in Chicago, represent the Debtor as counsel. Mubeen M. Aliniazee and Highpoint Management Solutions, LLC, serve as the Debtor's financial consultant. No trustee, examiner, or statutory creditors' committee has been appointed in this chapter 11 case. NORTHERN BEEF: Committee Taps P. Dougherty as Local Counsel ----------------------------------------------------------- The Official Committee of Unsecured Creditors appointed in the Chapter 11 case of Northern Beef Packers Limited Partnership seeks authority from the U.S. Bankruptcy Court for the District of South Dakota to retain Patrick T. Dougherty, Esq., -- pat@ptdlawfirm.com -- in Sioux Falls, South Dakota, as bankruptcy attorney. Mr. Dougherty will act as local counsel for the Chicago law firm of Robbins, Salomon & Patt, Ltd. The compensation will be $250 per hour plus sales tax and costs. Mr. Dougherty assures the Court that he 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 Committee's. Northern Beef Packers Limited Partnership, which operates a beef processing facility that opened in October 2012, filed for Chapter 11 relief (Bankr. D.S.D. Case No. 13-10118) on July 19, 2013. Karl Wagner signed the petition as chief financial officer. Judge Charles L. Nail, Jr., presides over the case. The Debtor estimated assets of at least $50 million and debts of at least $10 million. James M. Cremer, Esq., at Bantz, Gosch, & Cremer, L.L.C., serves at the Debtor's counsel. Cozen O'Connor serves as co-counsel. The U.S. Trustee has appointed five members to the Official Committee of Unsecured Creditors in the case. ORCHARD SUPPLY: Lowe's Finishes Purchase of 72 Stores ----------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Lowe's Cos. added 72 locations to its lineup of 1,825 home-improvement stores when it completed the $205 million Orchard Supply Hardware Stores Corp. acquisition on Aug. 30. Lowe's will operate Orchard Supply as a stand-alone brand. According to the report, the sale had been approved earlier in August by the U.S. Bankruptcy Court in Delaware. In addition to the cash purchase price, Lowe's said it covered "nearly all" payables to suppliers of Orchard Supply. The sale completed, the remnants of Orchard Supply are primed to promulgate a Chapter 11 plan because the creditors' committee negotiated a settlement with secured term-loan lenders assuring payment of costs of the Chapter 11 case and a distribution for unsecured creditors. The settlement is scheduled for approval in bankruptcy court Sept. 4. At the outset of bankruptcy, Orchard had 89 stores in California and two in Oregon. The inventory in the 19 stores that Lowe's didn't buy is being liquidated in going-out-of-business sales. 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. OVERSEAS SHIPHOLDING: Delayed 2012 Form 10-K Shows $480.1MM Loss -------------------------------------------------------------- Overseas Shipholding Group, Inc., filed with the U.S. Securities and Exchange Commission its delayed quarterly report for the third quarter of 2012 and annual report for the year ended Dec. 31, 2012. The Annual Report the Quarterly Report were delayed pending the completion of an inquiry conducted by the Company, at the request and under the direction of the audit committee of the board of directors of the Company, into the Company's understatement of its U.S. federal income tax payments and its provision for income taxes. The Company completed its inquiry and an analysis of the consequences in June 2013. On Oct. 19, 2012, the Audit Committee, on the recommendation of management, concluded that the Company's previously issued financial statements for at least each of the three calendar years in the three year period ended Dec. 31, 2011, and for each of the calendar quarters ended March 31, 2012, and June 30, 2012, should no longer be relied upon. Upon completion of the inquiry, it was determined that there were errors in the Company's previously issued financial statements for each of the 12 calendar years in the 12 year period ended Dec. 31, 2011, and for each of the calendar quarters ended March 31, 2012, and June 30, 2012, and those financial statements should be restated. Accordingly, the Company has restated its previously issued financial statements for the two calendar years ended Dec. 31, 2011, and 2010 and for each of the calendar quarters ended March 31, 2012, and June 30, 2012, in the Annual Report on Form 10-K. The Company reported a net loss of $480.11 million on $1.13 billion of shipping revenues for the year ended Dec. 31, 2012, as compared with a net loss of $201.36 million on $1.04 billion of shipping revenues during the prior year, as restated. The Company's balance sheet at Dec. 31, 2012, showed $4.04 billion in total assets, $3.50 billion in total liabilities and $534.24 million in total equity. For the three months ended Sept. 30, 2012, the Company reported a net loss of $25.78 million on $297.50 million of shipping revenues, as compared with a net loss of $62.52 million on $256.37 million of shipping revenues for the three months ended Sept. 30, 2011, as restated. A copy of the 2012 Form 10-K is available for free at: http://is.gd/w1K5VI A copy of the Q3 2012 Form 10-Q is available for free at: http://is.gd/CYBRDP About Overseas Shipholding Overseas Shipholding Group, Inc., headquartered in New York, is one of the largest publicly traded tanker companies in the world, engaged primarily in the ocean transportation of crude oil and petroleum products. OSG owns or operates 111 vessels that transport oil and petroleum products throughout the world. Overseas Shipholding Group and 180 affiliates filed voluntary Chapter 11 petitions (Bankr. D. Del. Lead Case No. 12-20000) on Nov. 14, 2012, disclosing $4.15 billion in assets and $2.67 billion in liabilities. Greylock Partners LLC Chief Executive John Ray serves as chief reorganization officer. James L. Bromley, Esq., and Luke A. Barefoot, Esq., at Cleary Gottlieb Steen & Hamilton LLP serve as OSG's Chapter 11 counsel. Derek C. Abbott, Esq., Daniel B. Butz, Esq., and William M. Alleman, Jr., at Morris, Nichols, Arsht & Tunnell LLP, serve as local counsel. Chilmark Partners LLC serves as financial adviser. Kurtzman Carson Consultants LLC is the claims and notice agent. The Export-Import Bank of China, owed $312 million used for the construction of five tankers, is represented by Louis R. Strubeck, Jr., Esq., and Kristian W. Gluck, Esq., at Fulbright & Jaworski LLP in Dallas; David L. Barrack, Esq., and Beret Flom, Esq., at Fulbright & Jaworski in New York; and John Knight, Esq., and Christopher Samis, Esq., at Richards Layton & Finger PA. Chilmark Partners, LLC serves as financial and restructuring advisor. Akin Gump Strauss Hauer & Feld LLP, and Pepper Hamilton LLP, serve as co-counsel to the official committee of unsecured creditors. FTI Consulting, Inc., is the financial advisor and Houlihan Lokey Capital, Inc., is the investment banker. OXIGENE INC: Incurs $1.6-Mil. Net Loss in Second Quarter -------------------------------------------------------- OXiGENE, Inc., filed its quarterly report on Form 10-Q, reporting a net loss of $1.6 million for the three months ended June 30, 2013, compared with a net loss of $2.3 million for the same period last year. The Company reported a net loss of $3.5 million for the six months ended June 30, 2013, compared with a net loss of $4.1 million for the corresponding period of 2012. "We did not recognize any revenue in the three month periods ended June 30, 2013, or June 30, 2012. We recognized approximately $0 and $114,000 in product revenue for the six month periods ended June 30, 2013, and June 30, 2012, respectively. The Company's balance sheet at June 30, 2013 showed $8.3 million in total assets, $891,000 in total current liabilities, and stockholders' equity of $7.4 million. "We have experienced negative cash flow from operations each year since our inception, except in fiscal 2000. As of June 30, 2013, we had an accumulated deficit of approximately $228,966,000. We expect to continue to incur increased expenses, resulting in losses, over at least the next several years due to, among other factors, our continuing and planned clinical trials and anticipated research and development activities." Ernst & Young LLP, in Redwood City, California, expressed substantial doubt about OXiGENE, Inc.'s ability to continue as a going concern, following its report on the Company's financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company has incurred operating losses since inception and expects to continue to incur operating losses over the next several years. A copy of the Form 10-Q is available at http://is.gd/SbH6qN South San Francisco, Calif.-based OXiGENE, Inc., is a biopharmaceutical company primarily focused on the development of vascular disrupting agents, or VDAs, for the treatment of cancer. PATRIOT COAL: Wants Documents From Peabody More Quickly ------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Patriot Coal Corp. wants the bankruptcy judge to compel former parent Peabody Energy Corp. to speed up the investigation of the spinoff in October 2007. The report recounts that Patriot first requested documents informally from Peabody in January. In April the bankruptcy judge gave Patriot formal authority to compel turnover of information and documents. So far, Peabody, also based in St. Louis, has produced only 3,428 documents, Patriot says. According to Patriot, Peabody said it can't complete document production until early next year. According to the report, Patriot filed papers in bankruptcy court last week scheduling a hearing on Sept. 13 for compelling the completion of document production by Oct. 1. Patriot said it wants to use the documents to decide if the spinoff "constituted an actual or constructive fraudulent transfer." 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. PETRON ENERGY: Incurs $1.3 Million Net Loss in Second Quarter ------------------------------------------------------------- Petron Energy II, Inc., filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss of $1.32 million on $20,760 of oil & gas sales for the three months ended June 30, 2013, as compared with a net loss of $472,707 on $104,942 of oil & gas sales for the same period last year. For the six months ended June 30, 2013, the Company reported a net loss of $1.70 million on $127,634 of oil & gas sales, as compared with a net loss of $7.02 million on $195,576 of oil & gas sales for the same period a year ago. The Company's balance sheet at June 30, 2013, showed $2.31 million in total assets, $4.96 million in total liabilities and a $2.65 million total stockholders' deficit. A copy of the quarterly report, as amended, is available for free at http://is.gd/bCfKeC The quarterly report was amended for the purpose of including certain information on the cover page of the original filing that was inadvertently omitted. 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. 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. POINT CENTER: Ch. 11 Trustee Taps Landau Gottfried as Counsel ------------------------------------------------------------- Howard B. Grobstein, trustee in the Chapter 11 case of Point Center Financial, Inc., seeks authority from the U.S. Bankruptcy Court for the Central District of California, Santa Ana Division, to employ Landau Gottfried & Berger LLP as general bankruptcy counsel. The following professionals will take a primary role in representing the Chapter 11 Trustee and will be paid their customary hourly rates: Rodger M. Landau, Esq. -- rlandau@lgbfirm.com $565 John P. Reitman, Esq. -- jreitman@lgbfirm.com $565 Robert G. Wilson, Esq. -- rwilson@lgbfirm.com $530 Roye Zur, Esq. -- rzur@lgbfirm.com $380 The firm will also be reimbursed for any necessary out-of-pocket expenses. Mr. Landau assures 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 Chapter 11 Trustee's. About Point Center Point Center Financial, Inc., a hard money lender, filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 13-11495) in Santa Ana, California, on Feb. 19, 2013. The Debtor disclosed $109,257,545 in assets and $54,566,116 in liabilities as of the Chapter 11 filing. The Company claims to have a long track record of success in originating and servicing loans from hundreds of investors. Unfortunately, due to the historic collapse of the economy beginning in about 2007, the Debtor, no different than many other similar enterprises in real estate, has fallen on hard times. From a high of about 130 performing loans with a total combined face value of over $450 million in 2006, only 8 loans are now performing. There were a total of only four foreclosed properties ("REOs") as of 2006. In comparison, between 2007 and 2012, there were 60 foreclosure sales. The result left the Debtor saddled with large secured liabilities to PMB, which has a blanket lien on all of the Debtor's assets in excess of $9 million, secured by the Debtor's primary asset of loan servicing and management fees received from secured loans and properties that have been taken back through foreclosure. The MA Creditors are represented by Mary L. Fickel, Esq., at Fickel & Davis. The Official Committee of Unsecured Creditors is represented by Marshack Hays LLP. RG STEEL: Seeks 90-Day Extension to Access, Sell Mill Steel ----------------------------------------------------------- Grand East Metals asked for a 90-day extension of its right to access and sell a mill steel stored at RG Steel LLC's Sparrows Point facility in Baltimore, Maryland. Grand East has the right to access and sell the steel reportedly worth $1.5 million pursuant to a temporary access agreement with HRE Sparrows Point LLC, the company that bought RG Steel's Sparrows Point assets last year. The terms of the agreement expired on Aug. 31. Grand East Metals is represented by: Scott T. Leonhardt, Esq. The Rosner Law Group LLC 824 Market Street, Suite 810 Wilmington, DE 19801 Tel: (302) 777-1111 Email: leonhardt@teamrosner.corn About RG Steel RG Steel LLC -- http://www.rg-steel.com/-- is the United States' fourth-largest flat-rolled steel producer with annual steelmaking capacity of 7.5 million tons. It was formed in March 2011 following the purchase of three steel facilities located in Sparrows Point, Maryland; Wheeling, West Virginia and Warren, Ohio, from entities related to Severstal US Holdings LLC. RG Steel also owns finishing facilities in Yorkville and Martins Ferry, Ohio. It also owned Wheeling Corrugating Company and has a 50% ownership in Mountain State Carbon and Ohio Coatings Company. RG Steel along with affiliates, including WP Steel Venture LLC, sought bankruptcy protection (Bankr. D. Del. Lead Case No. 12- 11661) on May 31, 2012. Bankruptcy was precipitated by liquidity shortfall and a dispute with Mountain State Carbon, LLC, and a Severstal affiliate, that restricted the shipment of coke used in the steel production process. The Debtors estimated assets and debts in excess of $1 billion. As of the bankruptcy filing, the Debtors owe (i) $440 million, including $16.9 million in outstanding letters of credit, to senior lenders led by Wells Fargo Capital Finance, LLC, as administrative agent, (ii) $218.7 million to junior lenders, led by Cerberus Business Finance, LLC, as agent, (iii) $130.5 million on account of a subordinated promissory note issued by majority owner The Renco Group, Inc., and (iv) $100 million on a secured promissory note issued by Severstal. Judge Kevin J. Carey presides over the case. The Debtors are represented in the case by Robert J. Dehney, Esq., and Erin R. Fay, Esq., at Morris, Nichols, Arsht & Tunnell LLP, and Matthew A. Feldman, Esq., Shaunna D. Jones, Esq., Weston T. Eguchi, Esq., at Willkie Farr & Gallagher LLP, represent the Debtors. Conway MacKenzie, Inc., serves as the Debtors' financial advisor and The Seaport Group serves as lead investment banker. Donald MacKenzie of Conway MacKenzie, Inc., as CRO. Kurtzman Carson Consultants LLC is the claims and notice agent. Wells Fargo Capital Finance LLC, as Administrative Agent, is represented by Jonathan N. Helfat, Esq., and Daniel F. Fiorillo, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C.; and Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachuiski Stang Ziehi & Jones LLP. Renco Group is represented by lawyers at Cadwalader, Wickersham & Taft LLP. Kramer Levin Naftalis & Frankel LLP represents the Official Committee of Unsecured Creditors. Huron Consulting Services LLC serves as the Committee's financial advisor. The Debtor has sold off the principal plants. The sale of the Wheeling Corrugating division to Nucor Corp. brought in $7 million. That plant in Sparrows Point, Maryland, fetched the highest price, $72.5 million. CJ Betters Enterprises Inc. paid $16 million for the Ohio plant. PLY GEM HOLDINGS: Amends Prospectus in Response to Comments ----------------------------------------------------------- Ply Gem Holdings, Inc., submitted with the U.S. Securities and Exchange Commission amendments to its registration statement originally filed with the SEC on May 6, 2013, relating to common stock offering. The amendments were made in response to the comments received from the SEC. The initial public offering price of the common stock is expected to be between $18.00 and $20.00 per share. The Company's common stock has been approved for listing on the New York Stock Exchange under the symbol "PGEM." The Company is selling 15,789,474 shares of common stock. The Company has also granted the underwriters an option to purchase a maximum of 2,368,421 additional shares of common stock to cover over-allotments. Copies of the amendments to the Registration Statements are available for free at: http://is.gd/hlDOYI http://is.gd/y69htg http://is.gd/q0mki4 http://is.gd/Z7Huev About Ply Gem Based in Cary, North Carolina, Ply Gem Holdings Inc. is a diversified manufacturer of residential and commercial building products, which are sold primarily in the United States and Canada, and include a wide variety of products for the residential and commercial construction, the do-it-yourself and the professional remodeling and renovation markets. Ply Gem Holdings incurred a net loss of $39.05 million in 2012, as compared with a net loss of $84.50 million in 2011. The Company's balance sheet at June 29, 2013, showed $1.10 billion in total assets, $1.17 billion in total liabilities and a $70.18 million total stockholders' deficit. * * * In May 2010, Standard & Poor's Ratings Services raised its (unsolicited) corporate credit rating on Ply Gem to 'B-' from 'CCC+'. "The ratings upgrade reflects our expectation that the company's credit measures are likely to improve modestly over the next several quarters to levels that we would consider more in line with the 'B-' corporate credit rating," said Standard & Poor's credit analyst Tobias Crabtree. REALOGY GROUP: Former McDonald's Executive Named to Board --------------------------------------------------------- Raul Alvarez was appointed to the Board of Directors of Realogy Holdings Corp. and the Board of Managers of Realogy Holdings' indirect wholly owned subsidiary, Realogy Group LLC, on Aug. 26, 2013. Mr. Alvarez has been determined by the Board to be an independent director for purposes of the listing standards of The New York Stock Exchange. With Mr. Alvarez's appointment, the Realogy Holdings Board now consists of eight directors, six of whom, or 75 percent, are independent directors. Mr. Alvarez, age 58, spent 15 years in executive leadership positions with McDonald's Corporation, most recently as president and chief operating officer from August 2006 until his retirement in December 2009. Prior to joining McDonald's, he held executive positions with Wendy's International, Inc. (1990-1994), and the Burger King Corporation (1977-1989). Currently, Mr. Alvarez serves as executive chairman of Skylark Co., Ltd., a restaurant operator in Japan, a position he has held since January 2013. The Realogy Holdings Board has not yet determined the committee or committees of the Board on which Mr. Alvarez will serve. Mr. Alvarez will receive compensation for his service as a director in accordance with the Realogy Holdings' director compensation guidelines. About Realogy Corp. Realogy Corp. -- http://www.realogy.com/-- a global provider of real estate and relocation services with a diversified business model that includes real estate franchising, brokerage, relocation and title services. Realogy's world-renowned brands and business units include Better Homes and Gardens Real Estate, CENTURY 21, Coldwell Banker, Coldwell Banker Commercial, The Corcoran Group, ERA, Sotheby's International Realty, NRT LLC, Cartus and Title Resource Group. Collectively, Realogy's franchise systems have around 15,000 offices and 270,000 sales associates doing business in 92 countries around the world. Headquartered in Parsippany, N.J., Realogy is owned by affiliates of Apollo Management, L.P., a leading private equity and capital markets investor. Realogy fully supports the principles of the Fair Housing Act. Realogy Holdings Corp. and Realogy Group LLC reported a net loss attributable to the Companies of $543 million on $4.67 billion of net revenues for the year ended Dec. 31, 2012. Realogy Holdings and Realogy Group incurred a net loss of $441 million on $4.09 billion of net revenues in 2011, following a net loss of $99 million on $4.09 billion of net revenues for 2010. As of June 30, 2013, the Company had $7.29 billion in total assets, $5.75 billion in total liabilities and $1.54 billion in total equity. Bankruptcy Warning "Our ability to make scheduled payments or to refinance our debt obligations depends on our financial and operating performance, which is subject to prevailing economic and competitive conditions and to certain financial, business and other factors beyond our control. We cannot assure you that we will maintain a level of cash flows from operating activities and from drawings on our revolving credit facilities sufficient to permit us to pay the principal, premium, if any, and interest on our indebtedness or meet our operating expenses. If our cash flows and capital resources are insufficient to fund our debt service obligations, we may be forced to reduce or delay capital expenditures, sell assets or operations, seek additional debt or equity capital or restructure or refinance our indebtedness. We cannot assure you that we would be able to take any of these actions, that these actions would be successful and permit us to meet our scheduled debt service obligations or that these actions would be permitted under the terms of our existing or future debt agreements. If we cannot make scheduled payments on our debt, we will be in default and, as a result: * our debt holders could declare all outstanding principal and interest to be due and payable; * the lenders under our senior secured credit facility could terminate their commitments to lend us money and foreclose against the assets securing their borrowings; and * we could be forced into bankruptcy or liquidation," the Company said in its annual report for the period ended Dec. 31, 2012. * * * In the Aug. 1, 2013, edition of the TCR, Moody's Investors Service upgraded the corporate family rating of Realogy Group to to B2 from B3. The upgrade to B2 CFR is driven by expectations for ongoing strong financial performance, supported by Realogy's recently-concluded debt and equity financing activities and a continuing recovery in the US existing home sale market. As reported by the TCR on Feb. 18, 2013, Standard & Poor's Ratings Services raised its corporate credit rating on Realogy Corp. to 'B+' from 'B'. "The one notch upgrade in the corporate credit rating to 'B+' reflects an increase in our expectation for operating performance at Realogy in 2013, and S&P's expectation that total lease adjusted debt to EBITDA will improve to the low-6x area and funds from operations (FFO) to total adjusted debt will be improve to the high-single-digits percentage area in 2013, mostly due to EBITDA growth in the low- to mid-teens percentage area in 2013," S&P said. ROBERTS LAND: Files Amended Plan; Evidentiary Hearing on Dec. 5 --------------------------------------------------------------- The final evidentiary hearing on confirmation of Roberts Land & Timber Corporation and Union Land and Timber Corp.'s Plan is scheduled for Dec. 5, 2013, at 9:30 a.m. The Debtors filed with the U.S. Bankruptcy Court for the Middle District of Florida on Aug. 23, 2013, an Amended and Restated Joint Chapter 11 Plan of Reorganization. The Plan amends and restates all previous plans (as modified from time to time) in their entireties that have been filed by the Debtors in this Bankruptcy Case. With respect to the Secured Claim of Farm Credit of Florida, ACA, as successor by merger to Farm Credit of North Florida, ACA, in the amount of approximately $13 million, the Plan provides that, at the sole and exclusive option of the Debtors, the Debtors will inform the Court of their determination to elect to treat Farm Credit's Allowed Class 4 Claim under Plan Treatment 1, Plan Treatment 2 or Plan Treatment 3. Plan Treatment 1 On the Effective Date, Farm Credit will receive: (a) Union Claim: $4.75 million of Cash (financed in part by the Sponsor and/or an outside third-party lender (a "Lender")), in full and final satisfaction, settlement, release and discharge of and in exchange for the $4.75 million portion of the Allowed Class 4 Claim arising from indebtedness owed in connection with the Union Loan (the "Union Claim"); and (b) Woodstock Claim: $13.2 million of real property, in full and final satisfaction, settlement, release and discharge of and in exchange for the $8.25 million portion of Farm Credit's Allowed Class 4 Claim arising from indebtedness owed in connection with the Woodstock Loans (the "Woodstock Claim"). Plan Treatment 2 On the Effective Date, Farm Credit will receive: (a) Union Claim: $4.75 million of Cash (financed in part by the Sponsor and/or a Lender), in full and final satisfaction, settlement, release and discharge of and in exchange for the Union Claim; and (b) Woodstock Claim: (i) relief to enforce its Lien rights on the Woodstock Property and (ii) Cash in the amount of a deficiency (if any) relating to the Woodstock Claim, in full and final satisfaction, settlement, release and discharge of and in exchange for the Woodstock Claim. Plan Treatment 3 Farm Credit will receive, in full and final satisfaction, settlement, release and discharge of and in exchange for its entire Allowed Class 4 Claim, monthly interest only payments on the last day of each month commencing on the month following the Effective Date with a final balloon payment of all outstanding principal and interest due four years after the Effective Date (which is expected to be Dec. 31, 2017) (such period is referred to as the "Initial Term"), which monthly payments including the balloon payment will, in the aggregate, be equal to Farm Credit's Allowed Class 4 Claim together with interest at the following fixed rates: * three and one quarter percent (3.25%) per annum for the first two years (months 1 through 24) of the Initial Term; and * the Prime Rate (fixed for two years as of Prime Rate in effect on the first day of the twenty fifth month) plus one half percent (Prime Rate + 0.5%) per annum for the third and fourth years of the Initial Term (months 25 through 48). Further, in the event the principal balance of Farm Credit's Allowed Class 4 Claim is reduced to $11 million during the Initial Term, then the Initial Term will automatically be extended for an additional period of four years (such additional period is referred to as the "Extended Term"), and the balloon payment of all outstanding principal and interest will instead be due eight years after the Effective Date (which is expected to be Dec. 31, 2021). During the Extended Term, Farm Credit will receive monthly interest-only payments (on the last day of each month) in an amount equal to the Prime Rate plus one half percent (Prime Rate + 0.5%), which rate (unlike the Prime Rate that will be fixed during years 3 and 4 of the Initial Term) will be adjusted on a monthly basis based on the rate in effect on the first day of each month during the Extended Term. Holders of Class 7 Equity Interests in the Debtors will retain their Interests (subject to any dilution of the value of such Interests that may occur pursuant to the terms agreed upon between the Reorganized Debtors and the Sponsor in consideration of the Sponsor's Investment to recapitalize the Debtors). On the Effective Date, (i) Avery C. Roberts will transfer his interests in the Debtors to the Holding Company in return for an ownership interest in the Holding Company, and (ii) the Sponsor will tender the Investment to the Holding Company in return for an ownership interest in the Holding Company. The respective ownership interests of the Sponsor and Avery C. Roberts in the Holding Company will be in amounts agreed upon by Avery C. Roberts and the Sponsor in their sole discretion. Further, the respective ownership interests of the Sponsor and Avery C. Roberts in the Holding Company will be free and clear of all Claims, interests and encumbrances, pursuant to the Confirmation Order and Sections 105, 363, 365, 1123 and 1141(c) of the Bankruptcy Code and will constitute all of the issued and outstanding Interests in the Reorganized Debtors as of the Effective Date. The Debtors will pay all Allowed Claims with (i) the Debtors' post-Petition Date income from the Secured Receivables, rental income from cattle grazing and hunting leases, (ii) income from the sale and development of real estate, (iii) management income (iv) the Investment and (v) if necessary, additional Cash provided by the Sponsor and/or a Lender. A copy of the Amended and Restated Plan is available at: http://bankrupt.com/misc/robertsland.doc218.pdf About Roberts Land Roberts Land & Timber Investment Corp. filed a Chapter 11 petition (Bankr. M.D. Fla. Case No. 11-03851) in Jacksonville, Florida, on May 25, 2011. Affiliate Union Land & Timber Corp. also sought Chapter 11 protection (Case No. 11-03853). Anthony W. Chauncey, Esq., at The Decker Law Firm, P.A., in Live Oak, Florida; and James H. Post, Esq., at Smith Hulsey & Busey, in Jacksonville, Florida, serve as counsel for the Chapter 11 Debtors. The Debtors are real estate holding and development companies as well as holder of private mortgages. The Debtors receive income from the sale and development of real estate, management of real estate developments, mortgage receivables, cattle grazing leases and hunting leases. In its schedules, Roberts Land disclosed assets of $26.7 million with debt totaling $12.2 million, all secured. The principal properties are 1,500 acres in Baker County, Florida and 3,300 acres in Union County, Florida. In its schedules, Union Land disclosed $2,376,170 in assets and $11,945,819 in liabilities as of the petition date. ROTECH HEALTHCARE: Exclusive Period Extension Approved ------------------------------------------------------ BankruptcyData reported that the U.S. Bankruptcy Court approved Rotech Healthcare's motion to extend the exclusive period during which the Company can file a Chapter 11 plan and solicit acceptances thereof through and including December 4, 2013 and February 2, 2014, respectively. As previously reported, "This is the Debtors' first request for an extension of these deadlines. The Debtors also request that such extensions be without prejudice to their right to request further extensions or to seek other appropriate relief. Although the Debtors have already filed and are soliciting votes with respect to the Plan and notwithstanding the Debtors' commitment to continue to prosecute these chapter 11 cases diligently, the extensions sought herein may not provide sufficient time for the Debtors to complete the various tasks that may need to be completed before the Plan can be confirmed." About Rotech Healthcare Based in Orlando, Florida, Rotech Healthcare Inc. (NASDAQ: ROHI) -- http://www.rotech.com/-- provides home medical equipment and related products and services in the United States, with a comprehensive offering of respiratory therapy and durable home medical equipment and related services. The company provides equipment and services in 48 states through approximately 500 operating centers located primarily in non-urban markets. The Company reported a net loss of $14.76 million in 2011, a net loss of $4.20 million in 2010, and a net loss of $21.08 million in 2009. The Company's balance sheet at Sept. 30, 2012, showed $255.76 million in total assets, $601.98 million in total liabilities, and a $346.22 million total stockholders' deficiency. On April 8, 2013, Rotech Healthcare and 114 subsidiary companies filed petitions seeking relief under chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 13-10741) to implement a pre- arranged plan negotiated with secured lenders. Attorneys at Proskauer Rose LLP, and Young, Conaway, Stargatt & Taylor serve as counsel to the Debtors; Foley & Lardner LLP is the healthcare regulatory counsel; Akin Gump Strauss Hauer & Feld LLP is the special healthcare regulatory counsel; Barclays Capital Inc. is the financial advisor; Alix Partners, LLP is the restructuring advisor; and Epiq Bankruptcy Solutions LLC is the claims agent. Prepetition term loan lender and DIP lender Silver Point Capital and other consenting noteholders are represented by Wachtell, Lipton, Rosen & Katz, and Richards Layton & Finger PA. The Official Committee of Unsecured Creditors tapped Otterbourg, Steindler, Houston & Rosen, P.C., as counsel; Buchanan Ingersoll & Rooney PC as Delaware counsel; and Grant Thornton LLP as financial advisor. The U.S. Trustee at the end of April appointed an official committee of equity holders. Members include Alden Global Recovery Master Fund LP, Varana Capital Master LP, Wynnefield Partners Small Cap Value LP I, Bastogne Capital Partners, LP, and Kenneth S. Grossman P.C. Pension Plan. The Equity Panel is represented by Bayard, P.A. as Delaware counsel. Rotech on Aug. 29 disclosed that the Bankruptcy Court has approved the Second Amended Joint Plan of Reorganization, along with $358 million of exit financing commitments received from Wells Fargo and certain existing holders of the 10.5% Senior Second Lien Secured Notes. The reorganization plan was confirmed at a court hearing in Delaware and was supported by the Statutory Committee of Unsecured Creditors. Creditors entitled to vote overwhelmingly voted in favor of the reorganization plan. Under the reorganization plan, the Company's existing common stock will be cancelled and substantially all of the new common stock of reorganized Rotech will be distributed to holders of the 10.5% Senior Second Lien Secured Notes. Trade suppliers are to be paid in full, if they agree to continue providing credit. The existing $23.5 million term loan would be paid in full, and the $230 million in 10.75 percent first-lien notes will be amended. RURAL/METRO: Court Sets Claims Bar Dates ---------------------------------------- At the behest of Rural/Metro Corporation, Bankruptcy Judge Kevin J. Carey on Aug. 26 entered an order requiring entities that assert a claim, including any claim under 11 U.S.C. Sec. 503(b)(9), secured claims, and priority claims, which arose on or prior to the Petition Date, to file on or before 5:00 p.m. on the date which is 30 days after the service date a proof of such claims. According to the order, all governmental units are required to send in their proofs of claim by January 31, 2014 at 5:00 p.m. Proofs of claim must be sent to: * If by United States Postal Service: Donlin, Recano & Company Inc. Re: Rural/Metro Corporation, et al. P.O. Box 2047 Murray Hill Station New York, NY 10156 * If by overnight courier or hand delivery: Donlin, Recano & Company, Inc. Re: Rural/Metro Corporation, et al. 419 Park Avenue South, Suite 1206 New York, NY 10016 About Rural/Metro Corporation Headquartered in Scottsdale, Arizona, Rural/Metro Corporation -- http://www.ruralmetro.com-- is a national provider of 911- emergency and non-emergency interfacility ambulance services and private fire protection services, operating in 21 states and nearly 700 communities. Rural/Metro Corp. and 59 affiliates sought Chapter 11 protection on Aug. 4, 2013, before the U.S. Bankruptcy Court for the District of Delaware. The Debtors' lead bankruptcy counsel are Matthew A. Feldman, Esq., Rachel C. Strickland, Esq., and Daniel Forman, Esq., at Willkie Farr & Gallagher LLP, in New York. Maris J. Kandestin, Esq., and Edmon L. Morton, Esq., at Young, Conaway, Stargatt & Taylor, LLP, in Wilmington, Delaware, serve as the Debtors' local Delaware counsel. Alvarez & Marsal Healthcare Industry Group, LLC, and FTI Consulting, Inc., are the Debtors' financial advisors, while Lazard Freres & Co. L.L.C. is their investment banker. Donlin, Recano & Company, Inc., is the Debtors' claims and noticing agent. The U.S. Trustee has appointed a three-member official committee of unsecured creditors in the Chapter 11 case. The Debtors have arranged $75 million of DIP financing from a group of prepetition lenders led by Credit Suisse AG. An interim order has allowed the Debtors to access $40 million of the DIP facility. RURAL/METRO: Wins Approval to Pay $6-Mil. to Critical Vendors ------------------------------------------------------------- Rural/Metro Corporation and its debtor-affiliates have won final approval to pay the prepetition claims of critical vendors in an amount not to exceed $6 million. An interim order entered earlier in the case limited payments to critical vendors to $3 million. The Debtors have said they intend to pay prepetition amounts due and owing to certain vendors that provide services and materials essential to their business operations. About Rural/Metro Corporation Headquartered in Scottsdale, Arizona, Rural/Metro Corporation -- http://www.ruralmetro.com-- is a national provider of 911- emergency and non-emergency interfacility ambulance services and private fire protection services, operating in 21 states and nearly 700 communities. Rural/Metro Corp. and 59 affiliates sought Chapter 11 protection on Aug. 4, 2013, before the U.S. Bankruptcy Court for the District of Delaware. The Debtors' lead bankruptcy counsel are Matthew A. Feldman, Esq., Rachel C. Strickland, Esq., and Daniel Forman, Esq., at Willkie Farr & Gallagher LLP, in New York. Maris J. Kandestin, Esq., and Edmon L. Morton, Esq., at Young, Conaway, Stargatt & Taylor, LLP, in Wilmington, Delaware, serve as the Debtors' local Delaware counsel. Alvarez & Marsal Healthcare Industry Group, LLC, and FTI Consulting, Inc., are the Debtors' financial advisors, while Lazard Freres & Co. L.L.C. is their investment banker. Donlin, Recano & Company, Inc., is the Debtors' claims and noticing agent. The U.S. Trustee has appointed a three-member official committee of unsecured creditors in the Chapter 11 case. The Debtors have arranged $75 million of DIP financing from a group of prepetition lenders led by Credit Suisse AG. An interim order has allowed the Debtors to access $40 million of the DIP facility. RURAL/METRO: Wins Approval to Hire FTI as Special Accountant ------------------------------------------------------------ Rural/Metro Corporation and its debtor-affiliates won approval to hire FTI Consulting, Inc. as special accountant. FTI will perform various services, including providing revenue cycle management, developing a new revenue recognition model, and providing historical forensic review assistance. FTI's compensation will be based upon the actual number of hours incurred at FTI's standard hourly rates ranging from $115 (for paraprofessionals) to $895 (for senior managing directors). About Rural/Metro Corporation Headquartered in Scottsdale, Arizona, Rural/Metro Corporation -- http://www.ruralmetro.com-- is a national provider of 911- emergency and non-emergency interfacility ambulance services and private fire protection services, operating in 21 states and nearly 700 communities. Rural/Metro Corp. and 59 affiliates sought Chapter 11 protection on Aug. 4, 2013, before the U.S. Bankruptcy Court for the District of Delaware. The Debtors' lead bankruptcy counsel are Matthew A. Feldman, Esq., Rachel C. Strickland, Esq., and Daniel Forman, Esq., at Willkie Farr & Gallagher LLP, in New York. Maris J. Kandestin, Esq., and Edmon L. Morton, Esq., at Young, Conaway, Stargatt & Taylor, LLP, in Wilmington, Delaware, serve as the Debtors' local Delaware counsel. Alvarez & Marsal Healthcare Industry Group, LLC, and FTI Consulting, Inc., are the Debtors' financial advisors, while Lazard Freres & Co. L.L.C. is their investment banker. Donlin, Recano & Company, Inc., is the Debtors' claims and noticing agent. The U.S. Trustee has appointed a three-member official committee of unsecured creditors in the Chapter 11 case. The Debtors have arranged $75 million of DIP financing from a group of prepetition lenders led by Credit Suisse AG. An interim order has allowed the Debtors to access $40 million of the DIP facility. SEVEN COUNTIES: Has Until Oct. 2014 to File Reorganization Plan --------------------------------------------------------------- Judge Joan A. Lloyd of the U.S. Bankruptcy Court for the Western District of Kentucky, Louisville Division, extended up to and until Oct. 6, 2014, Seven Counties Services, Inc.'s exclusive period to file a plan and up to and until Dec. 4, 2014, the Debtor's exclusive period to solicit acceptances of that plan. David M. Cantor, Esq., at Seiller Waterman LLC, in Louisville, Kentucky, represents the Debtor. About Seven Counties Seven Counties Services Inc., a not-for-profit behavioral services provider from Louisville, Kentucky, filed for Chapter 11 protection (Bankr. W.D. Ky. Case No. 13-31442) in the hometown on April 4, 2013. The petition was signed by Anthony M. Zipple as president/CEO. The Debtor scheduled assets of $45,603,716 and scheduled liabilities of $232,598,880. Seiller Waterman LLC serves as the Debtor's counsel. Judge Joan A. Lloyd presides over the case. The agency generates more than $100 million a year in revenue and employs a staff of 1,400 providing services at 21 locations and 120 schools and community centers. SMOKEY MOUNTAIN: Involuntary Chapter 11 Case Summary ---------------------------------------------------- Alleged Debtor: Smokey Mountain Developers, LLC 215 Woliss Lane Gatlinburg, TN 37738 Case Number: 13-51532 Involuntary Chapter 11 Petition Date: August 30, 2013 Court: Eastern District of Tennessee (Greeneville) Petitioner's Counsel: Michael E. Collins, Esq. MANIER & HEROD Suite 2200, 150 Fourth Avenue North Nashville, TN 37219 Tel: (615) 244-0030 E-mail: mcollins@manierherod.com Smokey Mountain Developers, LLC's petitioner: Petitioner Nature of Claim Claim Amount ---------- --------------- ------------ David Acor Loan $33,525 42 Larkwood Drive Jackson, TN 38001 STONE ROSE: Sergi Investors Seek Appointment of Ch. 11 Trustee -------------------------------------------------------------- SFP Group, L.P., Ivy Grove, LLC, Daniel A. Sergi and Sergi Enterprises, creditors and holders of limited partnership interests in Stone Rose, LP, ask the Court to appoint a Chapter 11 Trustee to wrest control of the Debtor and its assets from its current management in order to protect and preserve the assets of the estate. The Debtor's original general partner was Driver1 Corp., a company owned by Matthew Stoen, Meritage Real Estate Investments, LLC, owned by Joel Burns and Tracy Burns and the Capital Development Fund, a company owned by Darren Niemann. Driver1 and Stoen resigned in 2010, and a new entity, Stone Rose Management, Inc., was formed to assume management responsibilities for the Debtor. The Sergi Investors relate they made capital contributions and became limited partners in Stone Rose, investing the aggregate amount of $300,000. In 2010, the Sergi Investors filed a suit alleging that the Debtor is a sham real estate investment vehicle which Stoen used to fund his own personal whims and those of his wife Hayley Monson-Stoen, and his cronies, Niemann, Joel and Tracy. According to the Sergi Investors, the alleged misconduct of dissipating funds was material, involving millions of dollars. They add that the Debtor transferred millions of dollars to insiders and affiliates, while paying its investors nothing. "Thus far, the Debtor has failed and refused to pursue claims against the various wrongdoers and recipients of Debtor's funds," the Sergi Investors assert. "It is painfully obvious that the management of the Debtor has been, and remains, untrustworthy and unable to rehabilitate the Debtor," the Sergi Investors add. Section 1104 of the Bankruptcy Code provides "a trustee shall be appointed, among other things, "for cause, including fraud, dishonesty, incompetence, or gross mismanagement of the affairs of the debtor by current management, either before or after the commencement of the case, or similar cause..." The investors are represented by: Mark D. Belongia (6269391) mbelongia@ralaw.com 20 South Clark Street Suite 300 Chicago, IL 60603 Telephone: 312.580.1200 Facsimile: 312.580.1201 About Stone Rose Aurora, Illinois-based Stone Rose, LP, filed a Chapter 11 petition (Bankr. N.D. Ill. Case No. 13-16410) in Chicago, Illinois, on April 19, 2013. Joseph G. Dinges signed the petition as president of Stone Rose Mgmt., Inc., general partner. Judge Eugene R. Wedoff presides over the case. G. Alexander McTavish, Esq., at Foote, Mielke, Chavez & O'Neil, in Geneva, Ill., represents the Debtor as counsel. Stone Rose disclosed $16.5 million in total assets and $6.93 million in total liabilities in its schedule. The Debtor owns 82 acres of vacant land at 123rd St and Parallel Pky, in Kansas City, Missouri, which is valued at $4 million, and serves as collateral for a $2 million debt to Metcalf Bank. The Debtor also has a 75% interest as a member of Big House Investments, LLC, which owns 17 acres of vacant land at 110th St. and I-70 in Edwardsville, Kansas. The land is subject to a contract for sale for $6 million and is subject to a $4.0 million mortgage in favor of Metcalf Bank. TECHDYNE LLC: Hearing on Deal with HIOX Set for Sept. 10 -------------------------------------------------------- A hearing on the motion to approve the settlement agreement between Debtor TechDyne LLC and HIOX Capital LLC is set for Sept. 10, 2013, at 11:00 AM. As previously reported, the Debtor asked the U.S. Bankruptcy Court for the District of Arizona to approve the settlement agreement with Hiox Capital, which agreement will satisfy the debt owing by the Debtor to HIOX and provide a buy/sell mechanism to retire HIOX's 4.8770546% member interest in the Debtor. The Debtor will pay HIOX $405,590, at $75,000 down payment upon approval of the settlement and payments over time at 10% interest in monthly installments of $15,000. On or before the year after the end of the payoff, the Debtor will buy and HIOX will sell its 4.8770546% member interest in TechDyne for 50% of the then- existing fair market value of the Debtor. According to the Debtor's counsel, Bradley J. Stevens, Esq., at Jennings, Strouss & Salmon, P.L.C., in Phoenix, Arizona, the satisfaction of the HIOX Claim will resolve all remaining issues with the case. Accordingly, the Debtor also asks the Court to dismiss the bankruptcy case upon the Court's approval of the settlement. David D. Cleary, Esq. -- cleary@gtlaw.com -- at Greenberg Traurig, LLC, in Phoenix, Arizona, represents HIOX Capital. About TechDyne, LLC Scottsdale, Arizona-based TechDyne, LLC, is a developer and entrepreneur of two patented technologies: light armor and a medical cervical devise to prevent premature births. The Company filed for Chapter 11 protection (Bankr. D. Ariz. Case No. 11-16739) on June 9, 2011. Judge Charles G. Case, II, presides over the case. In its schedules, the Debtor disclosed $100,000,070 in assets and $701,313 in debts. The petition was signed by Benjamin V. Booher, Sr., managing member. The U.S. Trustee for Region 8, has not appointed an official committee of unsecured creditors in the Debtor's case because an insufficient number of persons holding unsecured claims have expressed interest in serving on a committee. The U.S. Trustee reserves the right to appoint such a committee would interest develop among the creditors. Bradley J. Stevens, Esq. -- bstevens@jsslaw.com -- at Jennings, Strouss & Salmon, PLC, in Phoenix, Ariz., represents the Debtor as counsel. TRINITY COAL: Disclosure Statement Hearing on Sept. 19 ------------------------------------------------------ The U.S. Bankruptcy Court for the Eastern District of Kentucky will convene a hearing on Sept. 19, 2013, at 1:30 p.m. (Eastern Time) to consider the adequacy of the disclosure statement explaining Trinity Coal Corporation, et al.'s Joint Plan of Reorganization. Any objections to the Disclosure Statement must be filed on or before Sept. 12. The Plan is sponsored by Essar Met Coal Inc. Under the Plan, Essar's unsecured claims will be allowed in the aggregate amount of $133,446,780. In exchange for full and final satisfaction, settlement, release, and compromise of each and every Essar Unsecured Claim, together with the other payments and consideration to be provided by the holders of the Allowed Essar Unsecured Claims or their non-Debtor Affiliate designees, each Holder of Essar Unsecured Claims will receive its Pro Rata share of 100% of the New Common Stock of Reorganized TPC and 100% of the New Common Stock of the Reorganized Deep Water Entities on the Effective Date. General Unsecured Claims, excluding the Essar Unsecured Claims, are impaired. Each Holder of an Allowed General Unsecured Claim will receive a Pro Rata interest in the Trust Assets; provided that each Holder of an Allowed Senior Secured Credit Facility Deficiency Claim agrees to waive the entire amount of the Senior Secured Credit Facility Deficiency Claim on the Effective Date. The Debtors stated that if the Plan is not confirmed with respect to any of the Debtors, the Debtors may revert back to the auction for the sale of any or all of the Debtors' assets and/or risk foreclosure on collateral of various secured parties, including the DIP Lenders. About Trinity Coal Trinity Coal Corp. is a coal mining company that owns coal deposits located in the Appalachian region of the eastern United States, specifically, in Breathitt, Floyd, Knott Magoffin, and Perry Counties in eastern Kentucky and in Boone, Fayette, Mingo, McDowell and Wyoming Counties in West Virginia. Trinity's coal mining operations are organized into six distinct coal mining complexes. Three complexes are located in Kentucky and are referred to as Prater Branch Resources, Little Elk Mining and Levisa Fork. The Kentucky Operations produced compliance and low sulfur steam coal. Three complexes are located in West Virginia and are referred to as Deep Water Resources, North Springs Resources and Falcon Resources. Trinity is a wholly owned subsidiary of privately held multinational conglomerate Essar Global Limited. Credit Agricole Corporate & Investment Bank, ING Capital LLC and Natixis, New York Branch filed an involuntary petition for relief under Chapter 11 against Trinity Coal Corporation and 15 affiliates (Bankr. E.D. Ky. Lead Case No. 13-50364). The three entities say they are owed a total of $104 million on account loans provided to Trinity. On Feb. 14, 2013, Austin Powder Company, Whayne Supply Company and Cecil I. Walker Machinery Co. filed an involuntary petition for relief under Chapter 11 (Bankr. E.D. Ky. Case No. 13-50335) against Frasure Creek Mining, LLC. On Feb. 19, 2013, Credit Agricole, ING Capital and Natixis joined as petitioning creditors. On March 4, 2013, the Debtors filed their consolidated answer to involuntary petitions and consent to an order for relief and reservation of rights, thereby consenting to the entry of an order for relief in each of their respective Chapter 11 cases. An order for relief in each of the Debtors was entered by the Court on March 4, 2013, which converted the involuntary cases to voluntary Chapter 11 cases. Sturgill, Turner, Barker & Moloney, PLLC serves as local counsel to the Official Committee of Unsecured Creditors. TRINITY COAL: Can Pay Up to $750,000 to Retain Non-Insider Workers ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Eastern District of Kentucky granted Trinity Coal Corporation, et al.'s key employee retention program for non-insider employees. The Debtors' chief restructuring officer will have discretion to implement the Retention Program. The Retention Payments will not exceed an aggregate amount of $750,000. The Retention Payments shall only be made (i) in September in an amount not to exceed $250,000, and (ii) on the Effective Date in an amount not to exceed $500,000. About Trinity Coal Trinity Coal Corp. is a coal mining company that owns coal deposits located in the Appalachian region of the eastern United States, specifically, in Breathitt, Floyd, Knott Magoffin, and Perry Counties in eastern Kentucky and in Boone, Fayette, Mingo, McDowell and Wyoming Counties in West Virginia. Trinity's coal mining operations are organized into six distinct coal mining complexes. Three complexes are located in Kentucky and are referred to as Prater Branch Resources, Little Elk Mining and Levisa Fork. The Kentucky Operations produced compliance and low sulfur steam coal. Three complexes are located in West Virginia and are referred to as Deep Water Resources, North Springs Resources and Falcon Resources. Trinity is a wholly owned subsidiary of privately held multinational conglomerate Essar Global Limited. Credit Agricole Corporate & Investment Bank, ING Capital LLC and Natixis, New York Branch filed an involuntary petition for relief under Chapter 11 against Trinity Coal Corporation and 15 affiliates (Bankr. E.D. Ky. Lead Case No. 13-50364). The three entities say they are owed a total of $104 million on account loans provided to Trinity. On Feb. 14, 2013, Austin Powder Company, Whayne Supply Company and Cecil I. Walker Machinery Co. filed an involuntary petition for relief under Chapter 11 (Bankr. E.D. Ky. Case No. 13-50335) against Frasure Creek Mining, LLC. On Feb. 19, 2013, Credit Agricole, ING Capital and Natixis joined as petitioning creditors. On March 4, 2013, the Debtors filed their consolidated answer to involuntary petitions and consent to an order for relief and reservation of rights, thereby consenting to the entry of an order for relief in each of their respective Chapter 11 cases. An order for relief in each of the Debtors was entered by the Court on March 4, 2013, which converted the involuntary cases to voluntary Chapter 11 cases. Sturgill, Turner, Barker & Moloney, PLLC serves as local counsel to the Official Committee of Unsecured Creditors. UNITEK GLOBAL: Gets Nasdaq Notification Over Late 10-Q Filing ------------------------------------------------------------- UniTek Global Services, Inc., received an additional letter from the NASDAQ Stock Market on Aug. 19, 2013, notifying the Company that it is not in compliance with NASDAQ Listing Rule 5250(c)(1) because the Company did not timely file its quarterly report on Form 10-Q for the period ended June 29, 2013, with the U.S. Securities and Exchange Commission. NASDAQ Listing Rule 5250(c)(1) requires the Company to timely file all required periodic financial reports with the SEC. On April 16, 2013, UniTek received a letter from the NASDAQ Stock Market stating that the Company was not in compliance with the continued listing requirements of NASDAQ Listing Rule 5250(c)(1) because the Company did not timely file its annual report on Form 10-K for the year ended Dec. 31, 2012, with the SEC. The Company subsequently submitted to NASDAQ a plan to regain compliance with Rule 5250(c)(1), and on May 14, 2013, NASDAQ notified the Company that NASDAQ had determined to grant the Company an exception, through Oct. 14, 2013, to regain compliance with the rule. Additionally, on May 20, 2013, the Company received a letter from NASDAQ stating that the Company also failed to comply with Rule 5250(c)(1) because it did not file its quarterly report on Form 10-Q for the quarter ended March 30, 2013, in a timely manner. UniTek submitted an updated plan to NASDAQ to regain compliance with Rule 5250(c)(1), and was advised that the Company has also been afforded an exception until Oct. 14, 2013, to file the first quarter Form 10-Q. UniTek filed its 2012 annual report on Form 10-K on Aug. 12, 2013. UniTek intends to submit an additional update by Sept. 3, 2013, regarding its plans to regain compliance with Rule 5250(c)(1) by, among other things, filing the Second Quarter Form 10-Q before the Oct. 14, 2013, exception deadline that was already granted for the filing of the 2012 Annual Report on Form 10-K and the First Quarter Form 10-Q. These notifications of non-compliance do not have an immediate effect on the listing or trading of the Company's common stock on The NASDAQ Global Market. 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. Unitek incurred a net loss of $77.73 million in 2012, as compared with a net loss of $9.13 million in 2011. As of Dec. 31, 2012, the Company had $326.40 million in total assets, $278.10 million in total liabilities and $48.30 million in total stockholders' equity. Bankruptcy Warning As of Dec. 31, 2012, the Company's total indebtedness, including capital lease obligations, was approximately $170 million. This amount has increased to approximately $210 million as of Aug. 9, 2013, including amounts borrowed to cash collateralize letters of credit. The Company's current debt also bears interest at rates significantly higher than historical periods. The Company said its substantial indebtedness could have important consequences to its stockholders. It will require the Company to dedicate a substantial portion of its cash flow from operations to payments on its indebtedness, thereby reducing the availability of the Company's cash flow to fund acquisitions, working capital, capital expenditures and other general corporate purposes. "An event of default under either of our credit facilities could result in, among other things, the acceleration and demand for payment of all the principal and interest due and the foreclosure on the collateral. As a result of such a default or action against collateral, we could be forced to enter into bankruptcy proceedings, which may result in a partial or complete loss of your investment," the Company said in the 2012 annual report. * * * 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. TRIUS THERAPEUTICS: N. Kjellson Had 7.5% Equity Stake at July 30 ---------------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, Nina S. Kjellson and her affiliates disclosed that as of July 30, 2013, they beneficially owned 3,600,195 shares of common stock of Trius Therapeutics, Inc., representing 7.5 percent of the shares outstanding. A copy of the regulatory filing is available for free at http://is.gd/ma249m 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. VERMILLION INC: Cancels Strategic Alliance Pact with Quest ---------------------------------------------------------- Vermillion, Inc., sent Quest Diagnostics Incorporated a notice of termination of the Strategic Alliance Agreement dated as of June 22, 2005, between the Company and Quest. Vermillion previously sent Quest a notice of default under the Strategic Alliance Agreement. The Strategic Alliance Agreement provides that if a party fails to cure material defaults within 90 days of the date of a notice of default, the other party has the right to terminate the Strategic Alliance Agreement. The Company believes that Quest failed to cure the violations, breaches, or failures to perform identified in the notice of default during this period. Under the terms of the Strategic Alliance Agreement, a termination by Vermillion as a result of Quest's default does not trigger any early termination penalties for Vermillion or Quest. Notwithstanding the termination, Vermillion recognizes that Quest has played a significant role in providing physicians and patients with access to OVA1 and securing reimbursement for this test. The Company said an ongoing commercial relationship with Quest is important and the Company is committed to continuing discussions with Quest to define a business structure that delivers value for both companies and assures patients can benefit from access to OVA1. As a result, Vermillion has agreed that Quest can continue to make OVA1 available to healthcare providers on the same financial terms following this termination while negotiating in good faith towards an alternative business structure. Under the terms of the Strategic Alliance Agreement, Quest was required to pay Vermillion a fixed payment of $50 per OVA1 performed, as well as 33 percent of its gross margin from revenue from performing OVA1 domestically. Quest had the non-exclusive right to commercialize OVA1 on a worldwide basis, with exclusive commercialization rights in the clinical reference lab marketplace in the United States, India, Mexico, and the United Kingdom through Sept. 11, 2014, with the right to extend the exclusivity period for one additional year. Quest is also a stockholder of the Company. About Vermillion Vermillion, Inc. is dedicated to the discovery, development and commercialization of novel high-value diagnostic tests that help physicians diagnose, treat and improve outcomes for patients. Vermillion, along with its prestigious scientific collaborators, has diagnostic programs in oncology, hematology, cardiology and women's health. The Company filed for Chapter 11 on March 30, 2009 (Bankr. D. Del. Case No. 09-11091). Vermillion's legal advisor in connection with its successful reorganization efforts wass Paul, Hastings, Janofsky & Walker LLP. Vermillion emerged from bankruptcy in January 2010. The Plan called for the Company to pay all claims in full and equity holders to retain control of the Company. Vermillion incurred a net loss of $7.14 million in 2012, as compared with a net loss of $17.79 million in 2011. The Company's balance sheet at June 30, 2013, showed $16.89 million in total assets, $4.39 million in total liabilities and $12.49 million in total stockholders' equity. BDO USA, LLP, in Austin, Texas, 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, all of which raise substantial doubt about the Company's ability to continue as a going concern. VISION INDUSTRIES: Amends Second Quarter Form 10-Q -------------------------------------------------- Vision Industries Corp. has amended its quarterly report on Form 10-Q for the period ended June 30, 2013, to include a subsequent event, which was inadvertently omitted from the Notes to the Financial Statements. This amendment speaks as of the original filing date of the Form 10-Q and does not reflect events that may have occurred subsequent to the original filing date. A copy of the amended Form 10-Q is available at http://is.gd/9T33eU 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 June 30, 2013, showed $1.14 million in total assets, $2.75 million in total liabilities and a $1.60 million total stockholders' deficit. 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. WEST COVINA MOTORS: Auction of Dormant Properties on Sept. 11 ------------------------------------------------------------- Jason Henry, writing for San Gabriel Valley Tribune, reports that a federal bankruptcy court will auction off 10 dormant properties Sept. 11 that it seized for liquidation from Ziad Alhassen's Hassen Imports Partnership. According to the report, the city of West Covina filed a motion to block Dighton America Inc., which is also run by Mr. Alhassen, from trying to buy back the defunct West Covina Auto Mall. The bankruptcy judge will rule on the city's motion the day of the auction. The report relates the auction will sell five properties in West Covina and five properties in Covina, according to Howard Ehrenberg, the appointed trustee responsible for the sale. The properties includes East Garvey Avenue's West Covina Auto Mall, where the bankruptcy of West Covina Motors Inc. -- also controlled Mr. Alhassen -- led to prime real estate next to the 10 Freeway going unused for years. The corporation operated Chevrolet, Hummer, Ford and Chrysler franchises at the location. According to the report, the minimum offers for the properties range from $210,000 -- for a property at 401 N. Citrus in Covina -- to nearly $17 million for the three lots that make up the West Covina Auto Mall at 1900, 1932 and 2000 East Garvey Avenue. Other minimum offers include $7.75 million for the former Clippinger Chrysler Jeep, 298 N. Azusa Avenue, and $6.2 million for the former Clippinger Chevrolet-Oldsmobile, 137 W. San Bernardino Road. A number of parties have already expressed interest in the locations, Mr. Ehrenberg said, according to the report. West Covina Motors, Inc., doing business as Clippinger Chevrolet and Clippinger Chrysler Jeep Dodge, filed a Chapter 11 petition (Bankr. C.D. Cal. Case No. 12-52197) on Dec. 28, 2012. Martin J. Brill, Esq., at Levene, Neale, Bender, Yoo & Brill, LLP, served as counsel. The Debtor estimated assets and debts of at least $10 million in its petition. At the behest of the city of West Covina, the bankruptcy court converted the chapter 11 case of West Covina Motors to a chapter 7 liquidation in April 2013. The city is represented by: ARNOLD M. ALVAREZ-GLASMAN, Esq. CITY ATTORNEY OF THE CITY OF WEST COVINA ALVAREZ-GLASMAN & COLVIN 13181 Crossroads Parkway North Suite 400 - West Tower City of Industry, CA 91746 Tel: (562) 699-5500 E-mail: aglasman@agclawfirm.com - and - Stephen T. Owens, Esq. Jordan A. Kroop, Esq. Christopher J. Petersen, Esq. SQUIRE, SANDERS (US) LLP 555 South Flower Street, 31st Floor Los Angeles, CA 90071 Tel: (213) 624-2500 E-mail: stephen.owens@squiresanders.com jordan.kroop@squiresanders.com christopher.petersen@squiresanders.com Hassen Imports Partnership filed a Chapter 11 petition (Bankr. C.D. Calif. Case No. 11-42068) in Los Angeles, California, on July 27, 2011. Marina Fineman, Esq., at Stutman Treister & Glatt, served as counsel to the Debtor. HIP disclosed $9,238,486 in assets and $37,555,776 in liabilities as of the Chapter 11 filing. WIZARD WORLD: Holders Convert A Shares Into 9.5MM Common Shares --------------------------------------------------------------- The series A preferred shareholders of Wizard World, Inc., converted all outstanding Series A cumulative convertible preferred stock into approximately 9.5 million shares of the Company's common stock, par value $0.0001 per share. In addition, the Series A Shareholders and certain other shareholders exchanged approximately 8 million outstanding Series A common stock purchase warrants for approximately 4 million shares of common stock. In connection with the conversion of the Preferred Stock, the Company issued approximately 1.6 million shares of common stock as payment for accrued and unpaid dividends. As a result of the transactions, the Company no longer has any derivative liabilities on its balance sheet and has approximately 51.1 million shares of common stock outstanding. About Wizard World Based in New York, N.Y., Wizard World, Inc., is a producer of pop culture and multimedia conventions ("Comic Cons") across North America that markets movies, TV shows, video games, technology, toys, social networking/gaming platforms, comic books and graphic novels. These Comic Cons provide sales, marketing, promotions, public relations, advertising and sponsorship opportunities for entertainment companies, toy companies, gaming companies, publishing companies, marketers, corporate sponsors and retailers. Wizard World reported a net loss of $1.02 million in 2012 as compared with a net loss of $2.01 million in 2011. As of June 30, 2013, the Company had $2.92 million in total assets, $8.40 million in total liabilities and a $5.48 million total stockholders' deficit. WORLD IMPORTS: Meeting to Form Creditors' Panel on Sept. 20 ----------------------------------------------------------- Roberta A. DeAngelis, United States Trustee for Region 3, will hold an organizational meeting on September 20, 2013 at 1:00 p.m. in the bankruptcy case of World Imports, Ltd. The meeting will be held at: Office of the United States Trustee 833 Chestnut Street, Suite #501 Philadelphia, PA 19107 The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' case. The organizational meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtor, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. To increase participation in the Chapter 11 proceeding, Section 1102 of the Bankruptcy Code requires that the United States Trustee appoint a committee of unsecured creditors as soon as practicable. The Committee ordinarily consists of the persons, willing to serve, that hold the seven largest unsecured claims against the debtor of the kinds represented on the committee. Section 1103 of the Bankruptcy Code provides that the Committee may consult with the debtor, investigate the debtor and its business operations and participate in the formulation of a plan of reorganization. The Committee may also perform other services as are in the interests of the unsecured creditors whom it represents. World Imports, Ltd., filed a Chapter 11 petition (Bankr. E.D. Pa. Case No. 13-15929) on July 3, 2013, in Philadelphia. Debtor- affiliates World Imports South, LLC (Bankr. E.D. Pa. Case No. 13-15933), 11000 LLC (Bankr. E.D. Pa. Case No. 13-15934, and World Imports Chicago, LLC (Bankr. E.D. Pa. Case No. 13-15935) filed separate petitions for Chapter 11 relief. The cases are jointly administered under Case No. 13-15929. John E. Kaskey, Esq., at Braverman Kaskey, P.C., in Philadelphia, serves as counsel to the Debtors. World Imports, Ltd., estimated assets and debts of $10 million to $50 million. World Imports South, LLC, estimated assets of $1 million to $10 million. WOUND MANAGEMENT: Malone Bailey Replaces PSH as Accountants ----------------------------------------------------------- Wound Management Technologies, Inc., dismissed Pritchett, Siler & Hardy, P.C., as its independent registered public accountants, effective Aug. 16, 2013. The decision was approved by the Company's Board of Directors. The dismissal was not a result of any disagreement with the accounting firm. Also effective Aug. 16, 2013, the Company engaged Malone Bailey LLP to serve as the Company's independent registered public accountants for the current fiscal year, which ends Dec. 31, 2013. During each of the Company's two most recent fiscal years and through Aug. 22, 2013, the Company did not consult Malone Bailey LLP with respect to the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company's consolidated financial statements, or any other matters or reportable events as set forth in Items 304(a)(2) of Regulation S-K. About Wound Management Fort Worth, Texas-based Wound Management Technologies, Inc., markets and sells the patented CellerateRX(R) product in the expanding advanced wound care market; particularly with respect to diabetic wound applications. Wound Management disclosed a net loss of $1.84 million on $1.17 million of revenue for the year ended Dec. 31, 2012, as compared with a net loss of $12.74 million on $2.21 million of revenue during the prior year. The Company's balance sheet at June 30, 2013, showed $1.37 million in total assets, $5.45 million in total liabilities and a $4.07 million total stockholders' deficit. Pritchett, Siler & Hardy, P.C., 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 incurred substantial losses and has a working capital deficit which factors raise substantial doubt about the ability of the Company to continue as a going concern. WPCS INTERNATIONAL: Drew Ciccarelli Buys 121,015 Shares ------------------------------------------------------- In a Schedule 13D filing with the U.S. Securities and Exchange Commission, Drew Morgan Ciccarelli disclosed that he purchased 121,015 shares of common stock WPCS International Incorporated for $418,453. Prior to the transaction, Mr. Ciccarelli held 106,015 common shares. There were 1,269,929 common shares issued and outstanding of the Company as of Aug. 13, 2013. A copy of the regulatory filing is available for free at http://is.gd/3StBKn About WPCS International Exton, Pennsylvania-WPCS International Incorporated is a global provider of design-build engineering services for communications infrastructure, with approximately 250 employees in five operations centers on three continents. The Company provides its engineering capabilities including wireless communication, specialty construction and electrical power to a diversified customer base in the public services, healthcare, energy and corporate enterprise markets worldwide. CohnReznick LLP, in Roseland, New Jersey, expressed substantial doubt about WPCS International's ability to continue as a going concern following the annual report for the year ended April 30, 2013. The independent auditors noted that the Company has incurred net losses and negative cash flows from operating activities, had a working capital deficiency as of and for the years ended April 30, 2013, and 2012, and has an accumulated deficit as of April 30, 2103. The Company reported a net loss of $6.8 million on $42.3 million of revenue in fiscal 2013, compared with a net loss of $20.6 million on $65.5 million in fiscal 2012. The Company's balance sheet at April 30, 2013, showed $18.1 million in total assets, $19.1 million in total liabilities, and a stockholders' deficit of $927,428. * Circuits No Longer Split on Chapter 13 Plan-Duration ------------------------------------------------------ Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that the federal courts of appeal are no long split on a question involving individual bankrupts in Chapter 13. According to the report, last week 11 judges on the U.S. Court of Appeals in San Francisco reversed a three-judge panel of the same court and ruled that an individual in Chapter 13 with no "projected disposable income" cannot propose a plan shorter than the five year "applicable commitment period" stated in Section 1325(d) of the Bankruptcy Code. In a 2-1 decision by a three-judge panel in August 2012, the majority concluded that the plan needn't be five years. Two other circuit courts had previously ruled that a five-year plan is mandatory. The Aug. 29 opinion by Circuit Judge Susan P. Graber reversed the Ninth Circuit's own 2008 decision in a case called Maney v. Kagenveama. In that case, the appeals court ruled that a shorter plan duration was permissible. On another issue in the same opinion, the Ninth Circuit ruled that the calculation of projected disposable income was an immutable function of the bankrupt's pre- bankruptcy income. The U.S. Supreme Court decided a case in June 2008 called Hamilton v. Lanning which ruled against Kagenveama on the second issue regarding the calculation of projected disposable income. Hamilton cast doubt about whether the other holding in Kagenveama, about the length of a plan, remained good law in the Ninth Circuit. The question left open in Kagenveama was decided in favor of a shorter plan one year ago when U.S. District Judge Edward M. Chen, sitting by designation on the appeals court, was joined by a circuit judge and concluded that Hamilton was not "clearly irreconcilable" with Kagenveama and thus was not "implicitly overruled" by the Supreme Court on the issue of how long a plan must remain open. Because a three-judge panel on a circuit court can't overrule a decision by a prior three-judge panel, Chen felt bound to reach the same result as Kagenveama. Judge Graber, who wrote the opinion last week, was on last year's three-judge panel, and she dissented. She believed Kagenveama was irreconcilable with Hamilton v. Lanning. Because she was writing for 11 judges on a so-called en banc panel, Graber this time didn't need to rely on whether Hamilton overruled Kagenveama. Instead, she construed the statute and agreed with the two other circuits by requiring a five-year plan. She did find support in Hamilton as showing a policy in the Supreme Court favoring longer plans so payments to creditors can increase as a bankrupt's income rises after plan confirmation. In cases called Tennyson and Baud, the U.S. Courts of Appeal in Atlanta and Cincinnati ruled that the duration of plans must be five years even absent projected disposable income. The bankrupt in the Baud case sought review in the U.S. Supreme Court, contending there was a split of circuits that the high court should resolve. The Supreme Court declined to hear the case. The case is Danielson v. Flores (In re Flores), 11-55452, Ninth U.S. Circuit Court of Appeals (San Francisco). * Government's ERISA Suit Immune From Automatic Stay ---------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that a lawsuit by the U.S. Department of Labor for violation of fiduciary duties in management of an employee death- benefit plan is not halted automatically by bankruptcy. The Secretary of Labor sued several affiliated companies for violation of the Employee Retirement Income Security Act of 1974. Later, the companies filed in Chapter 11 and contended that the suit in federal district court was halted automatically by bankruptcy. U.S. District Judge Mary A. McLaughlin from Philadelphia ruled that the case was covered by an exception to the automatic stay allowing governmental entities to enforce police or regulatory powers under Section 362(b)(4) of the Bankruptcy Code. Judge McLaughlin cited courts in other parts of the country which held that suits for ERISA violations fall within the ambit of police or regulatory powers. A governmental suit is not exempt from the automatic stay if the primary purpose is to protect the government's pecuniary interest, as opposed to protecting public safety. The companies argued that the suit was subject to the stay because individual employees would benefit financially. Judge McLaughlin rejected the argument, saying that benefit to private parties "does not convert this suit into one pursuing the pecuniary interest of private parties." The case is Solis v. Koresko, 09-988, U.S. District Court, Eastern District Pennsylvania (Philadelphia). * SAC Capital Civil Suit Should Be Delayed, U.S. Asks Judge ----------------------------------------------------------- Christie Smythe, writing for Bloomberg News, reported that a civil forfeiture lawsuit against SAC Capital Advisors LP should be put on hold while prosecutors continue their criminal case against the hedge fund over alleged insider trading, the U.S. told a federal judge in Manhattan. "Civil discovery would adversely affect the ability of the government to conduct the prosecution of a related criminal case," prosecutors said in the filing on Aug. 30. The hedge fund, which held as much as $14 billion in July, was founded by Steven A. Cohen, who is worth about $9 billion, according to the Bloomberg Billionaires Index. Prosecutors announced criminal charges against the fund on July 25 over what they described as unprecedented insider trading by employees as far back as 1999, the report recalled. That day, the government also filed the civil suit alleging SAC engaged in money laundering of illicit profits from the scheme by comingling them with the firm's capital. In that case, the government is seeking the forfeiture of "all property, real and personal" derived from insider trading offenses. Jonathan Gasthalter, a spokesman for SAC at Sard Verbinnen & Co., didn't immediately respond to an e-mail seeking comment on the government's filing. The civil case is U.S. v. SAC Capital Advisors LP, 1:13-cv-5182, U.S. District Court, Southern District of New York (Manhattan). * Homebuyers Tapping Brakes as Rates Rise ----------------------------------------- Prashant Gopal & Heather Perlberg, writing for Bloomberg News, reported that Amy and Ted Wilder lost out in the bidding for several Seattle-area homes during the past six months, even with offers well above the asking price. After May's sudden spike in mortgage rates, the Microsoft Corp. consultants put their search on hold. "We fell in love with a house for about $400,000 and thought we could afford it, and then we discovered it was $300 more a month than what we would have paid in February when we started looking," Amy Wilder, 42, said, the report related. "The mortgage rates just pushed it too far." A surge in borrowing costs to a two-year high is starting to cool demand from homebuyers as higher rates combine with surging prices to reduce affordability, according to data, the report said. The biggest pinch is being felt in expensive markets such as Seattle and New York, where budgets already were stretched, leading to a more uneven national recovery. According to the report, contracts to buy previously owned homes fell 1.3 percent last month, the biggest decline this year, the National Association of Realtors said on Aug. 29. They slid 6.5 percent in the Northeast and 4.9 percent in the West, the data showed. The figures followed a report last week that July new-home sales plunged 13.4 percent, paced by a 16.1 percent drop in the West. "There is a bigger monthly payment shock in the high-cost areas," said Lawrence Yun, chief economist for the Realtors group told the news agency. "Higher interest rates may pull demand out." * U.S. Outlines Penalties for Swiss Banks in Tax Probe ------------------------------------------------------ David Voreacos & Elena Logutenkova, writing for Bloomberg News, reported that Swiss banks that seek to avoid prosecution for fostering tax evasion through secret accounts held by U.S. clients face penalties of as much as 50 percent of the value of those assets, the U.S. government said. According to the report, hundreds of Swiss banks could be covered by a U.S.- Switzerland accord over how to punish financial institutions that used secret accounts to help American clients hide assets from U.S. tax authorities. The U.S. said on Aug. 29 it will continue criminal probes of 14 banks while allowing others to avoid prosecution by paying penalties and disclosing accounts. "This program will significantly enhance the Justice Department's ongoing efforts to aggressively pursue those who attempt to evade the law," Attorney General Eric Holder said in a statement, the report cited. "The program's requirement that Swiss banks provide detailed account information will improve our ability to bring tax dollars back to the U.S. Treasury." The accord lets Switzerland, the world's largest offshore financial center with about $2.2 trillion of assets, resolve talks spanning two years after U.S. criminal prosecutions eroded Swiss bank secrecy, the report related. Those under investigation include Credit Suisse Group AG, the second-largest Swiss bank; HSBC Holdings Plc, the largest European bank; and Julius Baer Group Ltd. * Leveraged Loan Volume Drops to 2-Year Low in August ----------------------------------------------------- Tim Cross, writing for Forbes, reported that leveraged loan activity in the U.S. hit its lowest monthly level in two years during August, with $16.7 billion in new-money deals, according to S&P Capital IQ/LCD. Part of the reason for the unimpressive showing, clearly, is the unofficial market holiday during the past two weeks (in August of 2012 there was a likewise unimpressive $21 billion in volume). Another reason: loan arrangers and institutional investors were keeping their powder dry in August in preparation for what is expected to be an active post-Labor Day loan market, according to the report. Indeed, there are some $40 billion of institutional loans that have been announced or are expected in market during the coming weeks, much of it M&A related, according to LCD's Chris Donnelly. And there should be demand for those deals, as investors continue to pour money into loan mutual funds. U.S. loan funds last week saw their seventh straight inflow of at least $1 billion (the total was $1.18 billion, according to Lipper), and the 63rd consecutive week in which there has been a net inflow of investor cash into the market, says LCD's Jon Hemingway, the report related. So far in 2013 there has been a net inflow of $39 billion into loan mutual funds and loan ETFs. The August loan market activity brings year-to-date volume to $419 billion, well ahead of the $252 billion posted at this time in 2012 and nearing the $464 billion recorded during all of last year, the report said. The full-year record is $535 billion in 2007. * Cleveland Water's Steven M. Notinger Named "Lawyer of the Year" ----------------------------------------------------------------- Cleveland, Waters and Bass, P.A. on Sept. 3 disclosed that five of its attorneys were recently selected by their peers for inclusion in Woodward/White's The Best Lawyers in America(C) 2014, and two of the five attorneys -- David K. Fries and Steven M. Notinger -- were named 2014 "Lawyer of the Year" in their respective fields and metropolitan areas. Since it was first published in 1983, Best Lawyers(R) has become universally regarded as the definitive guide to legal excellence. Because Best Lawyers is based on an exhaustive peer-review survey in which almost 50,000 leading attorneys cast nearly five million votes on the legal abilities of other lawyers in their practice areas, and because lawyers are not required or allowed to pay a fee to be listed, inclusion in Best Lawyers is considered a singular honor. Corporate Counsel magazine has called Best Lawyers "the most respected referral list of attorneys in practice." The five Cleveland, Waters and Bass attorneys named for 2014 are: Timothy E. Britain Commercial Finance Law Commercial Transactions/UCC Law Land Use and Zoning Law Litigation-Real Estate Real Estate Law David K. Fries -- 2014 Concord "Lawyer of the Year" in Corporate Law Business Organizations (including LLCs and Partnerships) Closely Held Companies and Family Businesses Law Corporate Law Philip M. Hastings Land Use and Zoning Law Real Estate Law Steven M. Notinger -- 2014 Manchester "Lawyer of the Year" in Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Law Bankruptcy and Creditor Debtor Rights/Insolvency and Reorganization Law Litigation - Bankruptcy David W. Rayment Commercial Litigation Founded in 1959, Cleveland, Waters and Bass, P.A., represents individuals and businesses throughout New Hampshire and northern New England. A substantial portion of the firm's practice is devoted to the representation of businesses of all sizes and includes business formation and governance, employment law, commercial transactions, real estate development and finance, commercial litigation and bankruptcy. The firm's practice areas also include all forms of civil and administrative litigation and trust and estate planning. Cleveland, Waters and Bass is a member of the Legal Netlink Alliance, an international alliance of independent law firms. * John Bae Joins Mintz Levin's New York Bankruptcy Practice ----------------------------------------------------------- Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. has expanded its Bankruptcy, Restructuring & Commercial Law practice in New York with the addition of John Bae, who joins as a Member. Formerly a shareholder with Greenberg Traurig, Mr. Bae is a seasoned practitioner with significant global expertise. He has represented multinational companies in financial restructuring, cross-border insolvencies, commercial litigation and products liability matters. His clients have included debtors, creditors and other constituencies in a wide variety of bankruptcy cases. "John brings a wealth of global experience handling major restructuring matters," said Richard E. Mikels, Chair of Mintz Levin's Bankruptcy, Restructuring & Commercial Law Practice. "He will make a very important contribution to the growth of our New York practice and will be a welcome addition to our national team of bankruptcy and restructuring attorneys." Mr. Bae holds a B.A. from the State University of New York at Albany and a J.D. from Hofstra University School of Law. He is admitted to practice in New York; multiple district courts; the U.S. Court of Appeals for the Fifth, Fourth and Second Circuits; and the Supreme Court of the United States. Mr. Bae received the Burton Award for Legal Achievement, which recognizes exceptional legal writing. He has also been included in the Euro money Legal Media Group's Guide to the World's Leading Insolvency and Restructuring Lawyers in the United States and Super Lawyers magazine. About Mintz Levin Mintz, Levin, Cohn, Ferris, Glovsky, and Popeo, P.C. is a general practice, full service law firm employing approximately 450 attorneys worldwide. Headquartered at One Financial Center in Boston?s Financial District, the firm also has offices in London, Los Angeles, New York City, San Diego, San Francisco, Stamford, and Washington, DC, and a liaison office in Israel. * NJ Yet to Recover From Effects of Big-Box Retail Bankruptcies --------------------------------------------------------------- R.J. Brunelli & Co., LLC on Sept. 3 disclosed that thanks to absorptions of numerous empty big-box spaces on Route 22, the vacancy rate in retail properties along northern New Jersey's six major shopping corridors inched down to 8.1% from a high of 8.2% a year ago, according to the latest survey by R.J. Brunelli & Co., LLC. With Route 23 the only other highway to show an improvement from the firm's 2012 study, the region's vacancy factor remained stuck above the 8.0% mark for each of the last four years. In its 23rd annual study of the six-county northern New Jersey market, the Old Bridge-based retail brokerage firm found 2.40 million square feet of vacancies in the 29.50 million square feet of space examined along the six corridors, with availabilities seen in 176 of the 909 properties reviewed. This compared with 2.33 million square feet of vacancies in 28.34 million square feet of space in the 2012 study. Conducted during the second quarter of this year, R.J. Brunelli's 2013 study reviewed shopping centers and freestanding buildings exceeding 2,000 square feet along State Highways 4, 10, 17, 22, 23 and 46/3, and certain intersecting arteries in Bergen, Essex, Morris, Passaic, Somerset and Union counties. Freestanding restaurants, auto service facilities and auto dealerships are also included, while enclosed regional malls and centers under construction or redevelopment are excluded. "Despite the progress shown on the hard-hit Route 22 corridor, northern New Jersey has yet to recover from the effects of the rash of big-box retail bankruptcies that began to elevate vacancies in 2009 when the rate jumped to 6.6% from 3.6% the prior year," said Richard J. Brunelli, president of the firm. "Long one of the top-performing retail real estate markets in the nation, the northern region boasted a vacancy rate of just 3% or less in less in three of the last 10 years after hitting an unheard of low of 2% in 2003. Our latest study found that big-box vacancies have stabilized as health clubs and retailers looking to expand their footprint in the region led to net absorption over the past year. But we're also seeing rising vacancies in small store space. Small chains and mom and pops continue to struggle to get financing for new locations or start-up ventures. Meanwhile, marginal operators unwilling to try to make a go of it in a tough economy are shutting their doors as leases expire." The 2013 survey found that vacancies in the region's big-box stores exceeding 20,000 square feet declined to 1.06 million square feet, or 45.7% of total empty space, from 1.09 million square feet, or 46.7%, in 2012. Approximately 772,207 square feet, or 73%, of this year's empty big box space came from stores that remained vacant since the firm's 2012 survey and, in many cases, from 2011 and before. Indeed, spaces lingering on the market for at least three years totaled 612,700 square feet, or 58% of the region's big-box inventory. These include locations formerly operated by Circuit City, Linens 'N Things, Office Depot, Home Depot Expo, Borders, and Pathmark. "During this past year, we saw some positive developments in particular with big-boxes left over from the Border's bankruptcy and The Great Atlantic & Pacific Tea Co.'s selective closures of under-performing Pathmarks," Mr. Brunelli noted. "Among the four Pathmarks that were still available along the corridors in our 2012 survey, two have since been absorbed by Costco and ShopRite on Route 22, leaving the pair along Route 10 in play. Similarly, of the four remaining Borders locations, the spaces on Routes 17 and 23 have been leased to DSW Shoes and Jo-Ann Fabrics, respectively, with stores on Routes 10 and 22 still available." Among the four big-box spaces aggregating 120,000 square feet along Routes 10, 17 and 22 that were thrown onto the market in the 2012 survey from the bankruptcies of Sixth Ave. Electronics, Syms and Einstein Moomjy, only 20,000 square feet has been spoken for, with growing local chain Buddy's Small Lots taking the former Einstein location on Route 10 in Whippany. A smaller (19,500- square-foot) former Sixth Ave. space on Route 10 in Livingston was leased by growing national chain The Tile Shop, which also took approximately 23,000 square feet of the long-vacant, 32,300- square-foot Circuit City on Route 22 in North Plainfield. Notable big-box vacancies arising over the past year included the 42,000-square-foot Daffy's on Route 4 in Paramus. The bankrupt chain's freestanding 30,000-square-foot location on Route 10 in East Hanover is being subdivided. To date, Party City has signed for 15,000 square feet and a lease is out on a 6,000-square-foot unit. R.J. Brunelli is exclusive broker for the remaining space. Results for the individual northern New Jersey roadways are as follows: Route 17. The vacancy factor along the 15-mile section extending from Paramus to Mahwah rose for the third straight year to 8.3% from 8.2% in 2012 and 7.4% in 2011. Over the last 10 years, this major retail corridor's vacancy factor has ranged from a low of 3.2% in 2005 to a high of 8.7% in 2010. All told, the firm's 2013 study uncovered 411,224 square feet of vacancies in the corridor's 4.94 million square feet of space. Availabilities were seen in 21 of the 150 properties reviewed. Big-boxes accounted for 60.8% of the vacant space, the highest ratio for any of the 10 retail corridors studied by the firm in northern and central New Jersey, down slightly from a 61.9% share in 2012. New big-box vacancies included Electronics Expo, XSRE and Loehmann's stores totaling 65,000 square feet in Paramus and Ramsey. These added to the 205,000 square feet of older big-box inventory divided between the roadway's former Home Depot Expo, Syms, Sixth Ave., K&G Menswear, and Pearl Art stores in Paramus and Ramsey. The impact of the newer closures was partially offset by new deals with Basset Furniture for half of the former 40,000-square-foot Circuit City store in Paramus Town Center (the since-closed XSRE occupied the other half), and DSW's aforementioned lease for the former 25,000-square-foot Border's at Interstate Shopping Center in Ramsey . Additionally, the former 28,000-square-foot Lord & Taylor Home store in Paramus' Fashion Center was snapped up over the course of the year by Buy Buy Baby, which relocated from Paramus Towne Square. Route 4. Reflecting the aforementioned closure of Daffy's in Paramus Place, the vacancy rate along the three-mile area between River Edge and Paramus increased to 5.4% from 5.0% in 2012 and 4.2% in 2011. The current rate is nearly half of the 10-year high of 10.6% reached in 2005, but well above the 1.8% low set in 2004. R.J. Brunelli's 2013 study found 121,950 square feet of vacancies in the 2.27 million square feet reviewed, with 12 of the highway's 48 properties having dark space. The impact of Daffy's closure was partially offset by the opening of Stickley Furniture in the long-vacant, 20,000-square-foot former Levitz building in Paramus. Route 10. At 13.5%, 20-mile stretch from Livingston to Ledgewood again had the highest vacancy factor of any of the 10 highways studied by R.J. Brunelli in New Jersey. The most recent rate was up from 13.1% in 2012, but down from the 10-year high of 13.8% in 2011, as new and lingering big-box vacancies continue to take a toll on a highway where the rate was low as 1.5% in 2005. The firm's 2013 study found 726,605 square feet of vacancies in the 5.38 million square feet studied, with availabilities in 48 of the 181 properties evaluated. Big-box spaces drove 47.1% of this year's vacancies, down slightly from 48.1% a year ago. Nine spaces aggregating 272,172 square feet have now been on the market for two years or more, representing 81% of the roadway's big-box vacancies. However, approximately 45% of those longer- term vacancies are clustered in a totally empty power center in Livingston. New big-box space becoming available in the past year included a pair of 22,500-square-foot pad sites at the Kmart- anchored center in Randolph, as well as a new 20,000-square-foot building in Morris Plains. In addition to the aforementioned deals for the former Daffy's and Einstein Moomjy buildings in East Hanover, big-box absorptions during the past year included a physical therapy practice's re-use of the 25,000-square-foot Honda Power Sport showroom in Hanover and Home Goods' lease of the 23,000-square-foot Branch Brook Pools location in East Hanover Plaza. "The relatively quick deals for the Daffy's and Branch Brook sites, both of which went on and off the market in the past year, point to the demand for well-located sites along Route 10," Mr. Brunelli commented. Route 46/3. The vacancy rate for the 21-mile corridor of Route 46 between Dover and West Paterson and the adjoining section of Route 3 in Clifton expanded to 5.7% from 4.9% in 2012, but still below the 10-year-high of 7.3% reached in 2011. Over the last 10 years, this corridor's vacancy factor was as low as 2.1% in 2008. R.J. Brunelli's 2013 survey found 402,079 square feet of vacancies in the 7.04 million square feet studied, with availabilities in 36 of the 203 sites studied. Big-box spaces accounted for 31.5% of the vacant space, up from 26.7% in 2012, with just four spaces above 20,000 square feet currently on the market. Spaces going dark in the past year include a 40,000-square-foot building in Parsippany's Morris Hills Shopping Center that became available after P.C. Richards relocated to a 30,000-square-foot freestanding store in Wayne previously occupied by Circuit City; the 20,500-square-foot All Brands Furniture building in Rockaway; and a 28,000-square-foot space in Ledgewood's Kenvil Shopping Plaza that housed a health club and, previously, an independent grocer. Elsewhere in the Morris Hills Shopping Center, Blink Fitness took approximately18,300 square feet of the former 22,400-square-foot Michaels space that became available in 2012 when the arts & crafts chain relocated to a nearby center. Additionally, in Wayne's Holiday Plaza, Buddy's Small Lots took a 23,000-square foot space previously occupied by Petco, which moved within the center to take the space previously occupied by Comp USA. Route 23. The 10-mile corridor between Wayne and Butler once again had the lowest vacancy rate of any of the 10 New Jersey highways studied by R.J. Brunelli, dropping to 4.7% from the 10-year high of 4.9% reached in 2012. Over the last 10 years, Route 23's vacancy factor has been as low as 1.4% in 2005, as the lack of available buildable land continues to keep a lid on the corridor's overall inventory. The firm's 2013 survey found 108,433 square feet of vacancies in 2.31 million square feet, with availabilities in 15 of the 76 properties reviewed. With Jo-Ann Fabrics taking the 25,000-square-foot Borders at Riverside Exchange, no big-box space is currently available along the highway. Route 22. A series of notable big-box absorptions helped drive down the vacancy rate along northern New Jersey's most heavily- retailed corridor to 8.3% from a 10-year high of 9.7% in 2012, but still above the 8.0% recorded in both 2011 and 2010. The corridor's rate had been under 3% in three of the last 10 years, dropping to a low of 2.4% in 2007. R.J. Brunelli's 2013 survey uncovered 628,608 square feet of vacant space in the 7.57 million square feet reviewed along the 21-mile stretch of Route 22 from Union to Somerville, as well as nearby properties along intersecting Route 202/206 from the Somerville traffic circle north into Bridgewater, plus the nearby Route 28/287 intersection in Bridgewater. Availabilities were seen in 44 of the 251 sites. Big-boxes accounted for 48.1% of the corridor's vacancies, dropping from 53.5% in 2012. Absorptions of big-box spaces were keyed by the aforementioned deals that are bringing Costco and a Village Super Markets Inc. Shop-Rite to shuttered Pathmark sites in North Plainfield and Union, respectively. Both chains are coming into the centers with bigger footprints than the Pathmarks. Elsewhere, a Nissan dealership took over the 20,000-square-foot former Ray's Sports building in North Plainfield, Harbor Freight occupied half of a 25,000-square-foot former Saturn dealership in Greenbrook, and The Tile Shop leased 23,000 square feet of the long-vacant 30,000-square-foot Circuit City in the same North Plainfield center that is adding Costco. Those gains on the big-box side were partially offset by the closures of a 30,000-square-foot Jason's Furniture in Greenbrook and the 25,000-square-foot Sears Auto Center in Union "In Union, property owner Sears Holdings is reconfiguring the site to accommodate smaller tenants," Mr. Brunelli said. "We expect to see more of this at other Sears-owned sites in New Jersey, as the struggling retailer looks to capitalize on its real estate holdings by converting under-performing store formats in desirable areas into multi-tenant rental properties." R.J. Brunelli expects to release its report on the central New Jersey market next week. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Oct. 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ Nov. 1, 2013 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Atlanta Marriott Marquis, Atlanta, Ga. Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 2, 2013 BEARD GROUP, INC. 20th Annual Distressed Investing Conference The Helmsley Park Lane Hotel, New York, N.Y. Contact: 240-629-3300 or http://bankrupt.com/ Dec. 5-7, 2013 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Terranea Resort, Rancho Palos Verdes, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ The Meetings, Conferences and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. Last Updated: Aug. 26, 2013 ********* 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. 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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. 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