/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/131207.mbx T R O U B L E D C O M P A N Y R E P O R T E R Saturday, December 7, 2013, Vol. 17, No. 339 Headlines DIGITAL DOMAIN: Reports $1.04 Million Net Loss in September ECOTALITY INC: Incurs $8.99 Million Net Loss for Sept. 17-30 ECOTALITY INC: Net Loss in October Drops to $1.80 Million FRESH & EASY: Lists $1.08 Billion Total Liabilities at Oct. 27 FRIENDFINDER NETWORK: October Cash Balance Increases to $37.44MM GROEB FARMS: Reports $16.60 Million Net Loss at Oct. 31 INTERFAITH MEDICAL: Incurs $3.93 Million Net Loss in October LIFE CARE: Posts $677,072 Net Loss in October LONGVIEW POWER: Ends October with $1.74 Billion in Assets MERCANTILE BANCORP: Ends October with $2.4 Million Cash MSD PERFORMANCE: Lists $5.08 Million Cash Balance at Oct. 31 NIRVANIX INC: Ends October with $1.62 Million Net Loss PATRIOT COAL: Reports $18.1 Million October Operating Loss RESIDENTIAL CAPITAL: October Operating Loss Rises to $30.6 Million RG STEEL: Incurs $4.063 Million Net Loss in October SPECIALTY PRODUCTS: Net Loss Dips to $950,481 in October VERTIS HOLDINGS: Net Loss Balloons to $40.12 Million in October ********* DIGITAL DOMAIN: Reports $1.04 Million Net Loss in September ----------------------------------------------------------- DDMG Estate, f/k/a/ Digital Domain Media Group, Inc., and its subsidiaries, filed on Nov. 20, 2013, their monthly operating report for September 2013. Digital Domain reported a net loss of $1.04 million on zero revenues for the month. At September 30, the Debtors reported $13.67 million in total assets, $121.75 million in total liabilities subject to compromise and a -($108.08 million) total shareholders' deficit. At the beginning of the month, the Debtors had $5.20 million cash. They reported total cash receipts of $296,977 and total cash disbursements of $317,147, which include $285,602 in professional fees. Thus, at the end of October, the Debtors had $5.18 million cash. A copy of the monthly operating report is available at: http://bankrupt.com/misc/DIGITALDOMAINseptmor.pdf About Digital Domain Port St. Lucie, Florida-based Digital Domain Media Group, Inc. -- http://www.digitaldomain.com/-- engaged in the creation of original content animation feature films, and development of computer-generated imagery for feature films and trans-media advertising primarily in the United States. Digital Domain Media Group, Inc. and 13 affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 12-12568) on Sept. 11, 2012, to sell its business for $15 million to Searchlight Capital Partners LP, subject to higher and better offers. The Company disclosed assets of $205 million and liabilities totaling $214 million. The Debtors also have sought ancillary relief in Canada, pursuant to the Companies' Creditors Arrangement Act in the Supreme Court of British Columbia, Vancouver Registry. Attorneys at Pachulski Stang Ziehl & Jones serve as counsel to the Debtors. FTI Consulting, Inc.'s Michael Katzenstein is the chief restructuring officer. Kurtzman Carson Consultants LLC is the claims and notice agent. An official committee of unsecured creditors appointed in the case is represented by lawyers at Sullivan Hazeltine Allinson LLC and Brown Rudnick LLP. At a bankruptcy auction, the principal part of the business was purchased by a joint venture between Galloping Horse America LLC, an affiliate of Beijing Galloping Horse Co., and an affiliate of Reliance Capital Ltd., based in Mumbai. The $36.7 million total value of the contact includes $3.6 million to cure defaults on contracts and $2.9 million in reimbursement of payroll costs. As the result of a settlement negotiated by the unsecured creditors' committee with secured lenders, there will be some recovery for the committee's constituency. ECOTALITY INC: Incurs $8.99 Million Net Loss for Sept. 17-30 ------------------------------------------------------------ Ecotality, Inc. filed with the U.S. Securities and Exchange Commission their monthly operating report for the period from Sept. 17 to 30, 2013. The Company reported a net loss of $8.99 million on net revenue of $46,675 for Sept. 17 to 30. At September 30, the Debtor had $92.53 million in total assets, $8.10 million in total liabilities, and a $83.79 million total shareholders' equity. At the beginning of the period, the Debtor had $346,886 in cash. The Debtor reported total cash receipts of $1.24 million and total cash disbursements of $440,768. Thus, at month end, Ecotality had $1.14 million cash. A copy of Ecotality Inc.'s Sept. 17-30 monthly operating report is available at the SEC at http://is.gd/odyfMC Lead Debtor Electric Transportation Engineering Corporation also filed on Nov. 25, 2013, with the Bankruptcy Court its monthly operating report for the period from Sept. 17 to 30, 2013. ETEC's statement of operations showed a net loss of $16.60 million on total revenues of $483,432 for the period. As of September 30, ETEC reported total assets of $5.36 million, total liabilities of $96.44 million, and a -($91.07 million) total shareholders' deficit. ETEC had a beginning cash balance for the month of $301,930. It reported total cash receipts of $397,609 and total cash disbursements of $65,027. At the end of the month, the Debtor had $634,512 cash. A copy of ETEC's Sept. 17-30 monthly operating report is available at http://bankrupt.com/misc/ECOTALITYINCseptmor.pdf About Ecotality Inc. Headquartered in San Francisco, California, Ecotality, Inc. (Nasdaq: ECTY) -- http://www.ecotality.com-- is a provider of electric transportation and storage technologies. Ecotality Inc. along with affiliates including lead debtor Electric Transportation Engineering Corp. sought Chapter 11 protection (Bankr. D. Ariz. Lead Case No. 13-16126) on Sept. 16, 2013, with plans to sell the business at an auction. The cases are assigned to Chief Judge Randolph J. Haines. The Debtors' lead counsel are Charles R. Gibbs, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Dallas, Texas; and David P. Simonds, Esq., and Arun Kurichety, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Los Angeles, California. The Debtors' local counsel is Jared G. Parker, Esq., at Parker Schwartz, PLLC, in Phoenix, Arizona. FTI Consulting, Inc. serves as the Debtors' crisis manager and financial advisor. The Debtors' claims and noticing agent is Kurtzman Carson Consultants LLC. Electric Transportation estimated assets of $10 million to $50 million and debt of $100 million to $500 million. Unlike most companies in bankruptcy, Ecotality has no secured debt. It simply ran out of money. There's $5 million owing on convertible notes, plus liability on leases. Part of pre-bankruptcy financing took the form of a $100 million cost-sharing grant from the U.S. Energy Department. In view of the San Francisco-based company's financial problems, the government cut off the grant when $84.8 million had been drawn. On Sept. 24, 2013, the Office of the United States Trustee for Region 14 appointed a committee of unsecured creditors. In October 2013, the bankruptcy judge cleared Ecotality to sell its assets after three separate bidders offered $4.3 million in total for the company's assets at an auction. ECOTALITY INC: Net Loss in October Drops to $1.80 Million --------------------------------------------------------- Ecotality, Inc. filed with the U.S. Securities and Exchange Commission their monthly operating report for October 2013. The Company incurred a $1.80 million net loss on net revenue of $35,164 for the month, as compared to a $8.99 million net loss on net revenue of $46,675 the previous month. At October 31, the Debtor had $91.28 million in total assets, $9.37 million in total liabilities, and a $81.90 million total shareholders' equity. For October, the Company had a beginning cash balance of $1.14 million. It reported total cash receipts of $8.41 million and total cash disbursements of $5.89 million. At the end of the month, the Debtor had $3.66 million cash. A copy of Ecotality Inc.'s October monthly operating report is available at the SEC at http://is.gd/R3olRl Lead Debtor Electric Transportation Engineering Corporation also filed on Nov. 25, 2013 with the Bankruptcy Court its monthly operating report for October 2013. ETEC reported a net loss of $441,261 with zero revenues for October -- a decrease from the previous month's $16.60 million net loss on total revenues of $483,432. At October 30, ETEC reported $5.07 million in total assets, $96.59 million in total liabilities, and a -($91.52 million) total shareholders' deficit. At the beginning of the month, ETEC had $634,512 cash. It reported total cash receipts of $454,888 and total cash disbursements of $110,484. At the end of October, the Debtor had $978,915 cash. A copy of ETEC's October monthly operating report is available at: http://bankrupt.com/misc/ECOTALITYINCoctmor.pdf About Ecotality Inc. Headquartered in San Francisco, California, Ecotality, Inc. (Nasdaq: ECTY) -- http://www.ecotality.com-- is a provider of electric transportation and storage technologies. Ecotality Inc. along with affiliates including lead debtor Electric Transportation Engineering Corp. sought Chapter 11 protection (Bankr. D. Ariz. Lead Case No. 13-16126) on Sept. 16, 2013, with plans to sell the business at an auction. The cases are assigned to Chief Judge Randolph J. Haines. The Debtors' lead counsel are Charles R. Gibbs, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Dallas, Texas; and David P. Simonds, Esq., and Arun Kurichety, Esq., at Akin Gump Strauss Hauer & Feld LLP, in Los Angeles, California. The Debtors' local counsel is Jared G. Parker, Esq., at Parker Schwartz, PLLC, in Phoenix, Arizona. FTI Consulting, Inc. serves as the Debtors' crisis manager and financial advisor. The Debtors' claims and noticing agent is Kurtzman Carson Consultants LLC. Electric Transportation estimated assets of $10 million to $50 million and debt of $100 million to $500 million. Unlike most companies in bankruptcy, Ecotality has no secured debt. It simply ran out of money. There's $5 million owing on convertible notes, plus liability on leases. Part of pre-bankruptcy financing took the form of a $100 million cost-sharing grant from the U.S. Energy Department. In view of the San Francisco-based company's financial problems, the government cut off the grant when $84.8 million had been drawn. On Sept. 24, 2013, the Office of the United States Trustee for Region 14 appointed a committee of unsecured creditors. In October 2013, the bankruptcy judge cleared Ecotality to sell its assets after three separate bidders offered $4.3 million in total for the company's assets at an auction. FRESH & EASY: Lists $1.08 Billion Total Liabilities at Oct. 27 -------------------------------------------------------------- Fresh & Easy Neighborhood Market Inc., and its affiliates, filed on Nov. 18, 2013, their monthly operating report for the period from September 29 to October 27. The Debtors reported a net loss of $19,886 on net sales of $69,543 for the reporting period. At the end of the period, the Debtors had $290.56 million in total assets, -($1.08 billion) in total liabilities and a $787.57 million total shareholders' deficit. The Debtors had a beginning cash balance of $50.09 million. They reported total cash receipts of $71.34 million and total cash disbursements of $48.29 million. At the end of the month, they had a cash balance of $73.14 million. A copy of the monthly operating report is available at: http://bankrupt.com/misc/FRESH&EASYoctmor.pdf About Fresh & Easy Neighborhood Fresh & Easy Neighborhood Market Inc., and its affiliate filed Chapter 11 petitions (Bankr. D. Del. Case Nos. 13-12569 and 13-12570) on Sept. 30, 2013. The petitions were signed by James Dibbo, chief financial officer. Judge Kevin J. Carey presides over the case. Fresh & Easy owes $738 million to Cheshunt, England-based Tesco, the U.K.'s biggest retailer. Fresh & Easy never made a profit and lost an average of $22 million a month in the 12 months ended in February, according to court papers. Jones Day serves as lead bankruptcy counsel. Richards, Layton & Finger, P.A., serves as local Delaware counsel. Alvarez & Marsal North America, LLC, serves as financial advisors, and Alvarez & Marsal Securities, LLC, serves as investment banker. Prime Clerk LLC acts as the Debtors' claims and noticing agent. Gordon Brothers Group, LLC, and Tiger Capital Group, LLC, serves as the Debtors' consultant. The Debtors estimated assets of at least $100 million and liabilities of at least $500 million. Roberta A. DeAngelis, U.S. Trustee for Region 3, appointed five creditors to serve in the Official Committee of Unsecured Creditors in the Chapter 11 cases of Fresh & Easy Neighborhood Market Inc., et al. Pachulski Stang Ziehi & Jones LLP serves as counsel to the Committee. FTI Consulting, Inc. serves as its financial advisor. The Debtors closed, on or about Nov. 26, 2013, the sale of about 150 supermarkets plus a production facility in Riverside, Califorinia, to Ron Buckle's Yucaipa Cos. Pursuant to the sale terms, the bankruptcy company changed its name, and the name of the case, to Old FENM Inc. FRIENDFINDER NETWORK: October Cash Balance Increases to $37.44MM ---------------------------------------------------------------- FriendFinder Networks Inc., et al., filed their monthly operating report for the month of October 2013. The Debtors' consolidated statement of operations showed a net loss of $3.85 million with total revenues of $21.72 million for the month. At October 31, the Debtors reported $463.98 in total assets, $701.28 million in total liabilities, and a -($237.30 million) total shareholders' deficit. At Oct. 1, the Debtors had $25.19 million cash. The Debtors had total cash receipts of $36.16 million and total cash disbursements of $23.92 million. Thus, at Oct. 31, the Debtors had $37.44 million cash, as compared to an ending cash balance of $25.19 million the previous month. A copy of the monthly operating report is available at: http://bankrupt.com/misc/FRIENDFINDERNETWORKSoctmor.pdf About FriendFinder Networks FriendFinder Networks and affiliates, including lead debtor PMGI Holdings Inc., sought bankruptcy protection (Bankr. D. Del. Lead Case No. 13-12404) on Sept. 17, 2013, estimating assets of $465.3 million and debt totaling $662 million. The Debtors are represented by Nancy A. Mitchell. Esq., Matthew L. Hinker, Esq., and Paul T. Martin, Esq., at Greenberg Traurig, LLP, in New York, as lead bankruptcy counsel; and Dennis A. Meloro, Esq., in Wilmington, Delaware, as local Delaware counsel. Akerman Senterfitt serves as the Debtors' special and conflicts counsel. The Debtors' financial advisor is SSG Capital Advisors LLC. BMC Group, Inc., is the Debtors' claims and noticing agent. On Sept. 21, 2013, the Debtors filed a plan of reorganization containing details on a reorganization worked out with about 80 percent of first and second-lien lenders before the Sept. 17 Chapter 11 filing. Under the Plan, holders of the $234.3 million in 14 percent first-lien notes will receive accrued interest plus an equal amount in new 14 percent first-lien notes to mature in five years. Excess cash will be used in part to pay down principal on the notes before maturity. Holders of $330.8 million in two issues of second-lien notes are to receive all the new equity. U.S. Bankruptcy Judge Christopher Sontchi approved the company's disclosure statement, a description of the reorganization plan, at a hearing on Nov. 5 in Wilmington, Delaware. FriendFinder will seek court approval of its reorganization plan to exit bankruptcy at a hearing scheduled for Dec. 16. Objections to the plan have to be filed by Dec. 9. GROEB FARMS: Reports $16.60 Million Net Loss at Oct. 31 ------------------------------------------------------- Groeb Farms, Inc., on Nov. 19, 2013, filed its monthly operating report for October 2013. The Debtor's statement of operations showed a net loss of $2.19 million on total revenues of $9.99 million for the month. At October 31, the Debtor reported total assets of $45.13 million, total liabilities of $44.83 million, and a $306,076 total shareholders' equity. The Debtor had a beginning cash balance for the month of $1.11 million. It reported total cash receipts of $20.71 million and total cash disbursements of $21.16 million. As a result, on October 31, the Debtor had $665,385 cash. A copy of the monthly operating report is available at: http://bankrupt.com/misc/GROEBFARMSoctmor.pdf About Groeb Farms Headquartered in Onsted, Mich., Groeb Farms is one of the largest honey packers in the nation. For more than 30 years, the company has provided the finest, top quality, wholesome and safe honey and related food products to industrial and retail customers as well as the American consumer. The Company sought protection under Chapter 11 of the Bankruptcy Code on Oct. 1, 2013 (Case No. 13-58200, Bankr. E.D. Mich.). Judge Walter Shapero is overseeing the case. The Debtor is represented by Judy A. O'Neill, Esq., and John A. Simon, Esq., at Foley & Lardner LLP, in Detroit, Michigan. Conway MacKenzie, Inc., serves as financial advisor, while Houlihan Lokey Capital, Inc., investment banker and also as financial advisor. Kurtzman Carson Consultants LLC is the Debtors' claims, noticing, and balloting agent. Daniel M. McDermott, United States Trustee for Region 9, has appointed five creditors to serve on the Official Committee of Unsecured Creditors. The Creditors' Committee members are: Bees Brothers, LLC, Little Bee Impex, Delta Food International Inc., Buoye Honey, and Citrofrut SA de CV. HC Capital Holdings 0909A, LLC, an affiliate of Honey Financing Company, LLC, extended $27 million senior secured super-priority revolving credit facility to the Debtors. The DIP Lender is represented by Leonard Klingbaum, Esq., at Kirkland & Ellis LLP, in New York. INTERFAITH MEDICAL: Incurs $3.93 Million Net Loss in October ------------------------------------------------------------ Interfaith Medical Center, Inc., on Nov. 20, 2013, filed its monthly operating report for October 2013. The Debtor's statement of operations showed a net loss of $3.93 million on total revenues of $12.75 million for the month. As of October 31, the Debtor had $123.49 million in total assets, $354.96 million in total liabilities and a -($231.48 million) total shareholders' deficit. In its cash flow statement for the ten month period in 2013, the Debtor reported a cash balance of $3.93 million. A copy of the monthly operating report is available at: http://bankrupt.com/misc/INTERFAITHMEDICALoctmor.pdf About Interfaith Medical Center Headquartered in Brooklyn, New York, Interfaith Medical Center, Inc., operates a 287-bed hospital on Atlantic Avenue in Bedford- Stuyvesant and an ambulatory care network of eight clinics in central Brooklyn, in Crown Heights and Bedford-Stuyvesant. The Company filed for Chapter 11 protection (Bankr. E.D. N.Y. Case No. 12-48226) on Dec. 2, 2012. The Debtor disclosed $111,872,972 in assets and $193,540,998 in liabilities as of the Chapter 11 filing. Liabilities include $117.9 million owing to the New York State Dormitory Authority on bonds secured by the assets. Alan J. Lipkin, Esq., at Willkie Farr & Gallagher LLP, serves as bankruptcy counsel to the Debtor. Nixon Peabody LLP is the special corporate and healthcare counsel. CohnReznick LLP serves as financial advisor. Donlin, Recano & Company, Inc. serves as administrative agent. The Official Committee of Unsecured Creditors tapped Alston & Bird LLP as its counsel, and CBIZ Accounting, Tax & Advisory of New York, LLC as its financial advisor. Eric M. Huebscher, the patient care ombudsman, tapped the law firm of DiConza Traurig LLP, as his counsel. LIFE CARE: Posts $677,072 Net Loss in October --------------------------------------------- Life Care St. Johns, Inc., dba Glenmoor, filed its monthly operating report for October 2013. The Debtor's statement of operations showed a net loss of $677,072 on total revenues of $861,133 for the month. As of October 31, the Debtor reported total assets of $63.80 million, total liabilities of $117.81 million and a -($54.01 million) total shareholders' deficit. At October 3, the Debtor had a cash balance of $9.16 million. The Debtor had total cash receipts of $1.05 million and total cash disbursements of 1.46 million. At the end of the month, the Debtor had $5.11 million cash, which includes restricted cash amounting to $3.34 million. A copy of the monthly operating report is available at: http://bankrupt.com/misc/LIFECAREoctmor.pdf 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. LONGVIEW POWER: Ends October with $1.74 Billion in Assets --------------------------------------------------------- Longview Power, LLC, et al., filed on Nov. 25, 2013 its monthly operating report for the month of October 2013. The Debtors' statement of operations showed a net loss of $9.48 million on total revenues of $9.50 million for the month. As of October 31, the Debtors reported total assets of $1.74 billion, total liabilities of $1.06 billion and a $680.43 million total shareholders' equity. At the beginning of the month, the Debtors had a cash balance of $32.71 million. The Debtors reported total receipts of $35.57 million and total disbursements of $37.59 million, which include $323,711 in professional fees. At the end of October, the Debtors had a balance of $30.68 million cash. A copy of the monthly operating report is available at: http://bankrupt.com/misc/LONGVIEWPOWERoctmor.pdf About Longview Power LLC Longview Power LLC is a special purpose entity created to construct, own, and operate a 695 MW supercritical pulverized coal-fired power plant located in Maidsville, West Virginia, just south of the Pennsylvania border and approximately 70 miles south of Pittsburgh. The project is owned 92% by First Reserve Corporation (First Reserve or sponsor), a private equity firm specializing in energy industry investments, through its affiliate GenPower Holdings (Delaware), L.P., and 8% by minority interests. Longview Power, LLC, filed a Chapter 11 (Bank. D. Del. Lead Case. 13-12211) on Aug. 30, 2013. The petitions were signed by Jeffery L. Keffer, the Company's chief executive officer, president, treasurer and secretary. The Debtor estimated assets and debts of more than $1 billion. Judge Brendan Linehan Shannon presides over the case. Kirkland & Ellis LLP and Richards, Layton & Finger, P.A., serve as the Debtors' counsel. Lazard Freres & Company LLC acts as the Debtors' investment bankers. Alvarez & Marsal North America, LLC, is the Debtors' restructuring advisors. Ernst & Young serves as the Debtors' accountants. The Debtors' claims agent is Donlin, Recano & Co. Inc. The Debtor disclosed assets of $1,717,906,595 plus undisclosed amounts and liabilities of $1,075,748,155 plus undisclosed amounts. Roberta A. DeAngelis, U.S. Trustee for Region 3, disclosed that as of September 11, 2013, a committee of unsecured creditors has not been appointed in the case due to insufficient response to the U.S. Trustee's communication/contact for service on the committee. Longview in November 2013 filed a bankruptcy-exit plan that will drop $1 billion in debt from the Debtor's balance sheet and raise money to cover the cost of fixing the plant. Under the Plan, the lenders would share between 85 percent and 90 percent of the reorganized company's equity, court papers show. The lenders providing the bankruptcy loan would get the rest of the equity. MERCANTILE BANCORP: Ends October with $2.4 Million Cash ------------------------------------------------------- Mercantile Bancorp, Inc., on Nov. 19, 2013, filed a monthly operating report for October 2013. The Debtor's statement of operations showed a net loss from continuing operations of $12,500 on $153,407 net revenues for the month. As of October 31, the Debtor had total assets of $33.13 million, total liabilities of $77.96 million, and total shareholders' deficit of -($44.82 million). At the beginning of the month, the Debtor had $2.57 million cash. For the entire month, the Debtor had total disbursements of $165,907 and no receipts reported. Thus, at month end, the Debtor had $2.40 million in cash. A copy of the monthly operating report is available at: http://bankrupt.com/misc/MERCANTILEBANCORPoctmor.pdf About Mercantile Bancorp Mercantile Bancorp -- http://www.mercbanx.com/-- is a Quincy, Illinois-based bank holding company with wholly owned subsidiaries consisting of one bank in Illinois and one each in Kansas and Florida, where the Company conducts full-service commercial and consumer banking business, engages in mortgage banking, trust services and asset management, and provides other financial services and products. The Company also operated Mercantile Bank branch offices in Missouri and Indiana. On Aug. 10, 2011, the Illinois Division of Banking released a Consent Order that Mercantile Bank, the Federal Deposit Insurance Corporation, and the Division entered into as of July 28, 2011. Under the Order, Mercantile Bank will cease operating with all money transmitters and currency businesses providing brokerage, sale or exchange of non-United States currency for deposit customers. Furthermore, Mercantile Bank may not enter into a new line of business without the prior written consent of the FDIC and the Division. Mercantile Bancorp filed a Chapter 11 petition (Bankr. D. Del. Case No. 13-11634) on June 27, 2013. The petition shows assets and debt both exceeding $50 million. Liabilities include $61.9 million owing on junior subordinated debentures. Mercantile stopped paying interest on the debentures in 2009, since then running up $14 million in unpaid interest. Stuart M. Brown, Esq. at DLA Piper LLP (US), in Wilmington, Delaware; and Richard A. Chesley, Esq., Kimberly D. Newmarch, Esq., and Aaron M. Paushter, Esq., at DLA Piper LLP (US), in Chicago, Illinois, are the attorneys for the Debtor. A three-member official committee of unsecured creditors was appointed by the U.S. Trustee. An official committee of trust preferred securities holders was also appointed by the U.S. Trustee. The TruPS Committee is represented by Domenic E. Pacitti, Esq., at Klehr Harrison Harvey Branzburg LLP, in Wilmington, Delaware; Morton R. Branzburg, Esq., at Klehr Harrison Harvey Branzburg LLP, in Philadelphia, Pennsylvania; David R. Seligman, P.C., Esq., and Jeffrey W. Gettleman, Esq., at Kirkland & Ellis LLP, in Chicago, Illinois; and Joseph Serino Jr., P.C., Esq., and John P. Del Monaco, Esq., at Kirkland & Ellis LLP, in New York. MSD PERFORMANCE: Lists $5.08 Million Cash Balance at Oct. 31 ------------------------------------------------------------ MSD Performance, Inc., et al., on Nov. 26, 2013, filed their monthly operating report for October 2013. The Debtors' consolidated statement of operations showed a net loss from continuing operations of $943,424 on net revenues of $6.58 million for the month. As of October 31, the Debtors reported total assets of $57.18 million, total liabilities of $106.03 million, and total shareholders' deficit of -($48.85 million). At the beginning of the month, the Debtor had $5.45 million cash. For the entire month, the Debtors had total receipts of $8.66 million and total disbursements of $9.04 million. Thus, the Debtors had a cash balance of $5.08 million at the end of the month. A copy of the monthly operating report is available at: http://bankrupt.com/misc/MSDPERFORMANCEoctmor.pdf About MSD Performance MSD Performance, Inc., headquartered in El Paso, Texas, operates in the power sports enthusiast and professional racer markets where the company maintains leading market share positions across all of its product categories under the MSD Ignition(R), Racepak(R) and Powerteq(R) brands. The company's facilities encompass over 220,000 square feet in six buildings, five of which are located across the U.S. and one in Shanghai, China. MSD Performance and its U.S. affiliates sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 13-12286) on Sept. 6, 2013. Ron Turcotte signed the petitions as CEO. The Debtors disclosed $30,305,656 in assets and $129,242,63 is liabilities as of the Chapter 11 filing. The Debtors' restructuring counsel is Jones Day. Their investment banker is SSG Advisors, LLC. The Debtors are also represented by Richards Layton and Finger, as local counsel. Logan & Co. is the claims and notice agent. The Official Committee of Unsecured Creditors appointed in the case retained Blank Rome LLP as counsel, and Carl Marks Advisory Group LLC as financial advisors. NIRVANIX INC: Ends October with $1.62 Million Net Loss ------------------------------------------------------ Nirvanix, Inc., on Nov. 25, 2013, filed its monthly operating report for October 2013. The Debtor's statement of operations showed a net loss from continuing operations of $1.62 million with net revenues of $216,211 for the month. As of October 31, the Debtor reported total assets of $11.44 million, total liabilities of $29.17 million, and total shareholders' deficit of $17.72 million. At the beginning of the month, the Debtor had $122,626 cash. For the entire month, the Debtors had total receipts of $1.49 million and total disbursements of $1.18 million. As a result, at Oct. 31, the Debtor had $434,554 cash. A copy of the monthly operating report is available at: http://bankrupt.com/misc/NIRVANIXINCoctmor.pdf About Nirvanix, Inc. Cloud storage company Nirvanix, Inc., based in San Diego, California, sought protection under Chapter 11 of the Bankruptcy Code on Oct. 1, 2013 (Case No. 13-12595, Bankr. D.Del.). The case is assigned to Judge Brendan Linehan Shannon. The Debtor is represented by Norman L. Pernick, Esq., Marion M. Quirk, Esq., and Patrick J. Reilley, Esq., at COLE, SCHOTZ, MEISEL, FORMAN & LEONARD, PA. Cooley LLP serves as the Debtor's special corporate counsel. Arch & Beam Global LLC serves as the Debtor's financial advisor. Epiq Systems Inc. is the Debtor's claims and noticing agent. The Debtor disclosed estimated assets of $10 million to $50 million and estimated debts of $10 million to $50 million. The petition was signed by Debra Chrapaty, CEO. PATRIOT COAL: Reports $18.1 Million October Operating Loss ---------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that Patriot Coal Corp., reported an $18.1 million operating loss in October on revenue of $135.3 million. Depreciation costs represented $15.2 million of the operating loss. The $28.2 million net loss was the product of more than $4 million in interest expense and financing fees together with $5.9 million in reorganization costs, according to the operating report filed with the bankruptcy court in St. Louis. 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. Houlihan Lokey 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. Patriot Coal's reorganization plan is up for approval at a Dec. 17, 2013 confirmation hearing. Creditors will finish voting on the plan by Dec. 10. The plan is based on settlements among the unsecured creditors' committee, the mine workers' union, former parent Peabody Energy Corp. and Arch Coal Inc. RESIDENTIAL CAPITAL: October Operating Loss Rises to $30.6 Million ------------------------------------------------------------------ Residential Capital, LLC, and its debtor affiliates disclosed that for the period from Oct. 1 to 31, 2013, they incurred $30,636,739 in operating loss, compared to the $1,609,859 operating loss they incurred the previous month. Receipts for the month ended Oct. 31, 2013, totaled $77,811,000, while disbursements totaled -($66,694,000). Total net revenue for the period was $2,631,000, while reorganization items totalled $22,499,000. The Debtors said that, as of Oct. 31, 2013, their consolidated assets totaled $3,067,215,000, consolidated liabilities totaled $3,925,343,000, and equity totaled -($858,128,000). Payments made to insiders during the month totaled $4,457,694. Payments made to bankruptcy professionals during the month totaled $8,512,581, while payments made to bankruptcy professionals since the Petition Date totaled $291,041,722. A full-text copy of the October 2013 Operating Report is available for free at http://bankrupt.com/misc/RESCAPmoroct2013.pdf About Residential Capital Residential Capital LLC, the unprofitable mortgage subsidiary of Ally Financial Inc., filed for bankruptcy protection (Bankr. S.D.N.Y. Lead Case No. 12-12020) on May 14, 2012. Neither Ally Financial nor Ally Bank is included in the bankruptcy filings. ResCap, one of the country's largest mortgage originators and servicers, was sent to Chapter 11 with 50 subsidiaries amid "continuing industry challenges, rising litigation costs and claims, and regulatory uncertainty," according to a company statement. ResCap disclosed $15.68 billion in assets and $15.28 billion in liabilities at March 31, 2012. Centerview Partners LLC and FTI Consulting are acting as financial advisers to ResCap. Morrison & Foerster LLP is acting as legal adviser to ResCap. Curtis, Mallet-Prevost, Colt & Mosle LLP is the conflicts counsel. Rubenstein Associates, Inc., is the public relations consultants to the Company in the Chapter 11 case. Morrison Cohen LLP is advising ResCap's independent directors. Kurtzman Carson Consultants LLP is the claims and notice agent. Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York, serves as counsel to Ally Financial. ResCap sold most of the businesses for a combined $4.5 billion. The Bankruptcy Court in November 2012 approved ResCap's sale of its mortgage servicing and origination platform assets to Ocwen Loan Servicing, LLC and Walter Investment Management Corporation for $3 billion; and its portfolio of roughly 50,000 whole loans to Berkshire Hathaway for $1.5 billion. Bankruptcy Creditors' Service, Inc., publishes RESIDENTIAL CAPITAL BANKRUPTCY NEWS. The newsletter tracks the Chapter 11 proceeding undertaken by affiliates of Residential Capital LLC and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000). RG STEEL: Incurs $4.063 Million Net Loss in October --------------------------------------------------- WP Steel Ventures, LLC, et al., on November 26, 2013, filed their monthly operating report for the month ended October 31, 2013. The Company posted a net loss of $4.063 million for October on zero revenues. As of October 31, 2013, the Company had total assets of $247.378 million, total liabilities of more than $1.212 billion, and total stockholders' deficit of -($965.02 million). For the month of October, the Company had total cash receipts of $1.726 million and total disbursements of $806,000. At the end of the month, the Company had $701,000 in unrestricted cash and equivalents. A full-text copy of the monthly operating report is available at: http://is.gd/52Xpzs 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. SPECIALTY PRODUCTS: Net Loss Dips to $950,481 in October -------------------------------------------------------- Specialty Products Holding Corp., on Nov. 25, 2013, filed its monthly operating report for October 2013. The Debtor's statement of operations showed a net loss of $950,841 on zero revenues for October, compared to a $1.18 million net loss for the previous month. As of October 31, the Debtor had $424.69 million in total assets, $225.01 million in total liabilities and a $199.68 million total shareholders' equity. At October 1, the Debtor had $12.23 million in cash. The Debtor reported total receipts of $37.75 million and total disbursements of $40.82 million, which includes $4.97 million in professional fees. As a result, at October 31, the Debtor had $9.17 million in cash. A copy of the monthly operating report is available at: http://bankrupt.com/misc/SPECIALTYPRODUCTSoctmor.pdf About Specialty Products Cleveland, Ohio-based Specialty Products Holdings Corp., aka RPM, Inc., is a wholly owned subsidiary of RPM International Inc. The Company is the holding company parent of Bondex International, Inc., and the direct or indirect parent of certain additional domestic and foreign subsidiaries. The Company claims to be a leading manufacturer, distributor and seller of various specialty chemical product lines, including exterior insulating finishing systems, powder coatings, fluorescent colorants and pigments, cleaning and protection products, fuel additives, wood treatments and coatings and sealants, in both the industrial and consumer markets. The Company filed for Chapter 11 bankruptcy protection (Bankr. D. Del. Case No. 10-11780) on May 31, 2010. Gregory M. Gordon, Esq., Dan B. Prieto, Esq., and Robert J. Jud, Esq., at Jones Day, serve as bankruptcy counsel. Daniel J. DeFranceschi, Esq., and Zachary I. Shapiro, Esq., at Richards Layton & Finger, serve as co- counsel. Logan and Company is the Company's claims and notice agent. The Company estimated its assets and debts at $100 million to $500 million. The Company's affiliate, Bondex International, Inc., filed a separate Chapter 11 petition on May 31, 2010 (Case No. 10-11779), estimating its assets and debts at $100 million to $500 million. On May 20, 2013, the Bankruptcy Court entered an order estimating the amount of the Debtors' asbestos liabilities, and a related memorandum opinion in support of the estimation order. The Bankruptcy Court estimated the current and future asbestos claims associated with Bondex International, Inc. and Specialty Products Holding at approximately $1.17 billion. The estimation hearing represents one step in the legal process in helping to determine the amount of potential funding for a 524(g) asbestos trust. VERTIS HOLDINGS: Net Loss Balloons to $40.12 Million in October --------------------------------------------------------------- Vertis Holdings, Inc., at al., on Nov. 25, 2013, filed their monthly operating report for the month of October 2013. The Debtors' consolidated statement of operations showed a net loss of $40.12 million on $257 net sales for October, as compared to a $883,288 consolidated net loss the previous month. As of October 31, the Debtors had $45.23 million in total assets, $519.52 million in total liabilities and a -($474.29 million) total shareholders' deficit. The Debtors had a beginning cash balance for the month of $10.65 million. The Debtors reported total receipts of $4.95 million and total disbursements of $7.02 million. They incurred $273,007 in professional fees. As a result, on October 31, they had $8.57 million cash. A copy of the monthly operating report is available at: http://bankrupt.com/misc/VERTISHOLDINGSoctmor.pdf About Vertis Holdings Vertis Holdings Inc. -- http://www.thefuturevertis.com/-- provides advertising services in a variety of print media, including newspaper inserts such as magazines and supplements. Vertis and its affiliates (Bankr. D. Del. Lead Case No. 12-12821), returned to Chapter 11 bankruptcy on Oct. 10, 2012, this time to sell the business to Quad/Graphics, Inc., for $258.5 million, subject to higher and better offers in an auction. As of Aug. 31, 2012, the Debtors' unaudited consolidated financial statements reflected assets of approximately $837.8 million and liabilities of approximately $814.0 million. Bankruptcy Judge Christopher Sontchi presides over the 2012 case. Vertis is advised by Perella Weinberg Partners, Alvarez & Marsal, and Cadwalader, Wickersham & Taft LLP. Quad/Graphics is advised by Blackstone Advisory Partners, Arnold & Porter LLP and Foley & Lardner LLP, special counsel for antitrust advice. Kurtzman Carson Consultants LLC is the Debtors' claims agent. Quad/Graphics is a global provider of print and related multichannel solutions for consumer magazines, special interest publications, catalogs, retail inserts/circulars, direct mail, books, directories, and commercial and specialty products, including in-store signage. Headquartered in Sussex, Wis. (just west of Milwaukee), the Company has approximately 22,000 full-time equivalent employees working from more than 50 print-production facilities as well as other support locations throughout North America, Latin America and Europe. Vertis first filed for bankruptcy (Bankr. D. Del. Case No. 08- 11460) on July 15, 2008, to complete a merger with American Color Graphics. ACG also commenced separate bankruptcy proceedings. In August 2008, Vertis emerged from bankruptcy, completing the merger. Vertis against filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 10-16170) on Nov. 17, 2010. The Debtor estimated its assets and debts of more than $1 billion. Affiliates also filed separate Chapter 11 petitions -- American Color Graphics, Inc. (Bankr. S.D.N.Y. Case No. 10-16169), Vertis Holdings, Inc. (Bankr. S.D.N.Y. Case No. 10-16170), Vertis, Inc. (Bankr. S.D.N.Y. Case No. 10-16171), ACG Holdings, Inc. (Bankr. S.D.N.Y. Case No. 10- 16172), Webcraft, LLC (Bankr. S.D.N.Y. Case No. 10-16173), and Webcraft Chemicals, LLC (Bankr. S.D.N.Y. Case No. 10-16174). The bankruptcy court approved the prepackaged Chapter 11 plan on Dec. 16, 2010, and Vertis consummated the plan on Dec. 21. The plan reduced Vertis' debt by more than $700 million or 60%. GE Capital Corporation, which serves as DIP Agent and Prepetition Agent, is represented in the 2012 case by lawyers at Winston & Strawn LLP. Morgan Stanley Senior Funding Inc., the agent under the prepetition term loan, and as term loan collateral agent, is represented by lawyers at White & Case LLP, and Milbank Tweed Hadley & McCloy LLP. On Jan. 16, 2013, Quad/Graphics completed the acquisition of Vertis Holdings for a net purchase price of $170 million. This assumes the purchase price of $267 million less the payment of $97 million for current assets that are in excess of normalized working capital requirements. ********* 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. 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