/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/100322.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, March 22, 2010, Vol. 14, No. 80 Headlines 1201 ERNSTON ROAD: Case Summary & 8 Largest Unsecured Creditors 1974 REALTY ASSOCIATES: Case Summary & 5 Largest Unsec. Creditors 199 BOWERY REST: Case Summary & 20 Largest Unsecured Creditors 2665 GENEVA LLC: Voluntary Chapter 11 Case Summary ACCELR8 TECHNOLOGY: Posts $383,122 Net Loss in Q2 Ended Jan. 31 ACORN: Teeters on Bankruptcy Amid Funding Loss, Mismanagement ADEGBOYEGA ADESOKAN: Case Summary & 17 Largest Unsecured Creditors ADVANTA BANK: Closed; FDIC Pays Out Insured Deposits AFFILIATED MEDIA: Emerges from Chapter 11 AGRIUM INC: Moody's Assigns 'Ba1' Rating on Preferred Shelf AMERICAN INT'L: Ex-CEO Has $278MM Deal to Sell Shares to UBS AMERICAN NAT'L: Closed; The National Bank & Trust Assumes Deposits ANDRE CHREKY INC: Case Summary & 20 Largest Unsecured Creditors ANGAUR LLC: Case Summary & 20 Largest Unsecured Creditors ANGIOTECH PHARMA: Dec. 31 Balance Sheet Upside-Down by $313MM APPALACHIAN COMMUNITY: Community & Southern Bank Assumes Deposits ASPHALT CONCRETE: Case Summary & 20 Largest Unsecured Creditors ARAMARK CORP: Bank Debt Trades at 3% Off in Secondary Market ARIAD PHARMA: Deloitte & Touche Raises Going Concern Doubt ASARCO LLC: Sues Sterlite Over $2.6 Bil. Purchase Agreement ATRIUM CORP: Reaches Settlement with Unsecured Creditors AVETA INC: S&P Affirms Counterparty Credit Ratings at 'B' BANK OF HIAWASSEE: Closed; Citizens South Bank Assumes Deposits BEDMINSTER INTERNATIONAL LIMITED: Chapter 15 Case Summary BIG HEART CITY: Case Summary & 3 Largest Unsecured Creditors BIOLASE TECHNOLOGY: BDO Seidman Raises Going Concern Doubt BLOCKBUSTER INC: S&P Cuts Rating to 'CC' on Bankruptcy Warning BLUEGRASS ABS: Remarketing Agent Change Won't Move Fitch Ratings BLUEKNIGHT ENERGY: Delays 10-K Filing; Expects $16.5-Mil. Loss BLUE DOLPHINS: Receives NASDAQ Delisting Notice BLUE RIDGE MEDICAL: Case Summary & 20 Largest Unsecured Creditors BLUFFS AT BRUSH: Files for Chapter 11 Bankruptcy in Missouri BUCYRUS COMMUNITY: Case Summary & 20 Largest Unsecured Creditors BURLINGTON COAT: Bank Debt Trades at 7% Off in Secondary Market BVS ENTERPRISES: Case Summary & 3 Largest Unsecured Creditors C BEAN: Files for Chapter 11, Shuts Down Operations CANTON COMMERCIAL: Case Summary & 6 Largest Unsecured Creditors CAPMARK FINANCIAL: Wants to Sell Investments in Mexican Markets CAPMARK FINANCIAL: Wants to Assign ATM License to Berkadia CAPMARK FINANCIAL: Proposes Johnson as Salary Consultant CAPMARK FINANCIAL: Gets OK for Messana as Special Del. Counsel CARL HENRY DAUGHERTY: Case Summary & 8 Largest Unsecured Creditors CBD FRANCHISING: Case Summary & 21 Largest Unsecured Creditors CELL THERAPEUTICS: Seeks Shareholder OK to Issue More Shares CENTRAL PACIFIC: Fitch Downgrades Issuer Default Rating at 'CC' CENTURY SECURITY: Closed; Bank of Upson Assumes All Deposits CHAMPION ENTERPRISES: Investor Group Injects $50MM New Capital CHIQUITA BRANDS: Moody's Raises Corporate Family Rating to 'B2' CHRYSLER LLC: New Chrysler Recalls 300 Workers in Indiana CHRYSLER LLC: Canadian Dealers Keen on U.S. Style Incentives CITADEL BROADCASTING: Bank Debt Trades at 14% Off CLOSET WORLD: Case Summary & 20 Largest Unsecured Creditors COFFEYVILLE RESOURCES: S&P Assigns 'BB-' Ratings on Senior Notes COLEMAN CABLE: Moody's Affirms Corporate Family Rating at 'B2' COLEMAN CABLE: S&P Affirms Rating on Senior Notes at 'B' COLONIAL PROPERTIES: S&P Affirms 'BB+' Corporate Credit Rating COMMUNITY HEALTH: Bank Debt Trades at 4% Off in Secondary Market CONGOLEUM CORP: Files 10-K; Posts $15.2 Million Net Loss CONSTANTINE KERASIOTES: Case Summary & 14 Largest Unsec. Creditors COUNTRY IMPORTED: Voluntary Chapter 11 Case Summary CRDENTIA CORP: Case Summary & 20 Largest Unsecured Creditors CVR ENERGY: Moody's Upgrades Corporate Family Rating to 'B1' DA-LITE SCREEN: Moody's Assigns 'B1' Rating on $105 Mil. Notes DA-LITE SCREEN: S&P Affirms 'B' Corporate Credit Rating DEAN FOODS: Bank Debt Trades at 3% Off in Secondary Market DEN-6768 LP: Case Summary & 20 Largest Unsecured Creditors DEVELOPMENT CORP: Case Summary & 20 Largest Unsecured Creditors DEX MEDIA EAST: Bank Debt Trades at 11% Off in Secondary Market DEX MEDIA WEST: Bank Debt Trades at 5% Off in Secondary Market DIAMOND DISTRIBUTION: Case Summary & 20 Largest Unsec. Creditors DORIT EDEN: Case Summary & 1 Largest Unsecured Creditor DOT VN: Posts $1.4 Million Net Loss in Q3 Ended January 31 DOWNEY REGIONAL: Defaults Under Healthcare Finance DIP Facility ENERGYCONNECT GROUP: RBSM LLP Raises Going Concern Doubt ENVIROSOLUTIONS HOLDINGS: Files Schedules of Assets & Liabilities ESCOM LLC: Involuntary Chapter 11 Case Summary ESKIDS LLC: Case Summary & 20 Largest Unsecured Creditors FELIKS MLYNARCZYK: Case Summary & 20 Largest Unsecured Creditors FIRST LOWNDES BANK: Closed; First Citizens Bank Assumes Deposits FLEETWOOD ENTERPRISES: U.S. Trustee Fights Pachulski's $1.5M Bill FAIRPOINT COMMS: Bank Debt Trades at 20% Off in Secondary Market FAIRPOINT COMMS: Bar Date for Regulatory Agencies Extended FAIRPOINT COMMS: Telephone Co. of Vermont's Schedules & Statement FAIRPOINT COMMS: Keeley Stake Down to 0.001% FENTURA FINANCIAL: Losses Prompt Going Concern Doubt FORD MOTOR: Bank Debt Trades at 3% Off in Secondary Market FREMONT GENERAL: Funds Accused of Vote Manipulation GENERAL MOTORS: Proposes Plante & Moran as Accountants GENERAL MOTORS: Court OKs Hilco and Maynard as Sales Agents GENERAL MOTORS: Great American as Appraiser Approved by Court GENERAL MOTORS: Trafelet Proposes Stutzman as Counsel GREATER GERMANTOWN: Voluntary Chapter 11 Case Summary GRUPO SENDA: Fitch Affirms Issuer Default Ratings at 'B-' HAGOOD RESERVE: Files for Chapter 11 Bankruptcy in Charlotte HARI OM Case Summary & 20 Largest Unsecured Creditors HARMONY PARK: Files Schedules of Assets & Liabilities HARMONY PARK: Wants to Hire Santen & Hughes as Bankr. Counsel HAWKER BEECHCRAFT: Bank Debt Trades at 19% Off in Secondary Market HEALTH MANAGEMENT: Bank Debt Trades at 4% Off in Secondary Market HERON LAKE BIOENERGY: Earns $2.6 Million in Q1 Ended January 31 HOG BROTHERS RECYCLING: Case Summary & 20 Largest Unsec. Creditors HOME OWNERSHIP: Moody's Withdraws 'Ba2' Rating on Preferred Stock HPT DEVELOPMENT: Updated Case Summary with Creditors List HPT DEVELOPMENT: Section 341(a) Meeting Scheduled for April 13 HPT DEVELOPMENT: Wants Aiken Schenk as Bankruptcy Counsel HSH DELAWARE: Sees Creditors Being Paid in Full with Interest INTERNATIONAL LEASE: Fitch Rates $2 Bil. Senior Notes at 'BB' I/OMAGIC CORP: Simon & Edward Raises Going Concern Doubt IMPERIAL INDUSTRIES: Posts $5.3 Million Net Loss in 2009 INNOVATIVE CONSULTING: Case Summary & 20 Largest Unsec. Creditors IPS CORP: S&P Changes Outlook to Stable, Affirms 'B' Rating ITRON INC: Moody's Affirms Corporate Family Rating at 'B1' JAYEL CORP: Taps Blair and Brady as Bankruptcy Counsel JOHN MANEELY: Bank Debt Trades at 5% Off in Secondary Market KORLEY SEARS: Gets Okay to Close Sale of Property to West Central KRAMERIA LLC: Case Summary & 1 Largest Unsecured Creditor LEE ANTHONY ROSSI: Case Summary & 1 Largest Unsecured Creditor LENOX CONDOMINIUM: Files for Bankruptcy to Seek Loan Extension LESARRA ATTACHED: Section 341(a) Meeting Scheduled for April 19 LESARRA ATTACHED: Taps Belding Harris as General Bankr. Counsel LONGVIEW POWER: Moody's Downgrades Ratings on Senior Loan to 'B2' LOUIS AMBROSE THOMANN: Case Summary & 20 Largest Unsec. Creditors MAGNA ENTERTAINMENT: CA Racing Board Balks at Disclosure Statement MAMMOTH HENDERSON: Wants Access to Rents Securing U.S. Bank Loan MASSEY ENERGY: $960 Mil. Deal Won't Affect Moody's 'B1' Rating MATERA RIDGE: Section 341(a) Meeting Scheduled for April 12 MEDICOR LTD: Panel Seeks Nod of Settlement with D&Os, Insurers MERUELO MADDUX: Seeks to Retain Kible Green as Financial Advisor MESA AIR: Section 341 Creditors' Meeting Adjourned to April 16 MESA AIR: Wants Until March 26 to File Schedules and Statements MESA AIR: Receives Final Nod for $15-Mil. Letter of Credit METRO-GOLDWYN-MAYER: Bank Debt Trades at 46% Off MGM MIRAGE: Moody's Affirms Corporate Family Rating at 'Caa1' MICHAEL MILES OWENS: Case Summary & 20 Largest Unsecured Creditors MICHAELS STORES: Bank Debt Trades at 7% Off in Secondary Market MIDWEST COMMERCIAL: Case Summary & 20 Largest Unsecured Creditors NAVISTAR INTERNATIONAL: Fitch Corrects Senior Notes Rating to 'B' NEIMAN MARCUS: Bank Debt Trades at 6% Off in Secondary Market NEXAIRA WIRELESS: Posts $1.1 Million Net Loss in Q1 Ended Jan. 31 NO GOOD TV: Files for Bankruptcy to Implement Reorganization Plan NOBLE NURSERY: Case Summary & 20 Largest Unsecured Creditors NON-INVASIVE MONITORING: Posts $362,000 Loss in Q2 Ended Jan. 31 NORTH AMERICAN: Case Summary & 20 Largest Unsecured Creditors NORTH BEACHES CASA: Case Summary & 7 Largest Unsecured Creditors OZBURN HESSEY: Moody's Assigns 'Ba3' Rating on $310 Mil. Loan OSI RESTAURANT: Bank Debt Trades at 10% Off in Secondary Market OXIGENE INC: Ernst & Young Raises Going Concern Doubt PALM INC: Net Loss Narrows to $18.5 Million in Fiscal Q3 2010 PALM INC: Samana, Maverick No Longer Hold Shares PALM INC: Credit Suisse Holds 1.1% of Common Stock PALM INC: Artis Capital Holds 0.2% of Common Stock PERSONALITY HOTELS: Section 341(a) Meeting Scheduled for April 13 PHEASANT RUN: Files Schedules of Assets & Liabilities PHEASANT RUN: Section 341(a) Meeting Scheduled for April 21 PINNACLE FOODS: Bank Debt Trades at 5% Off in Secondary Market PONIARD PHARMA: Posts $45.7 Million Net Loss in 2009 QUEST RESOURCE: Files Form 15 to Deregister Unsold Shares RADIENT PHARMACEUTICALS: St. George Extends Waiver Until May 15 RADLAX GATEWAY: Has Until April 21 to Propose Chapter 11 Plan RADLAX GATEWAY: Can Access Airport Room Revenues Until April 21 RAYMOND LEE ROSSI: Case Summary & 8 Largest Unsecured Creditors RBDB INVESTMENTS: Case Summary & 2 Largest Unsecured Creditors REMINGTON RANCH: Amends List of Largest Unsecured Creditors REMINGTON RANCH: Files Schedules of Assets and Liabilities REMINGTON RANCH: Has Access to James Pippin Cash Until March 26 REMINGTON RANCH: Has Until May 21 to Propose Reorganization Plan RIM DEVELOPMENT: Files Amended Schedules of Assets and Liabilities RIM DEVELOPMENT: Has Access to Lenders' Cash Until April 8 RONALD PARKHURST: Case Summary & 2 Largest Unsecured Creditors ROTHSTEIN ROSENFELDT: Bankr. Court Won't Hear 3rd Party Claims RUBICON US: Delaware Court Terminates Exclusive Plan Filing RUFFIN ROAD OFFICE: Case Summary & 1 Largest Unsecured Creditor SAGAMORE FUND 1 LLC: Voluntary Chapter 11 Case Summary SAND TECHNOLOGY: Posts C$27,951 Net Loss in Q2 Ended January 31 SENTINEL MANAGEMENT: 7th Circ. Puts Trustee Back On BoNY Warpath SEQUA CORP: Bank Debt Trades at 7% Off in Secondary Market SILVER BOWL RV: Case Summary & 20 Largest Unsecured Creditors SINCLAIR BROADCAST: Dec. 31 Balance Sheet Upside-Down by $202MM SONRISA PROPERTIES: Amends Schedules of Assets and Liabilities SONRISA PROPERTIES: U.S. Trustee Unable to Form Creditors Panel SOUTHWEST GUARANTY: Voluntary Chapter 11 Case Summary SPANSION INC: Samsung Dealt Blow ITC Flash Patent Fight SPIRIT FINANCE: Bank Debt Trades at 23% Off in Secondary Market STAAR SURGICAL: 10-K Filing Delayed due to Domilens Divestiture STATE BANK OF AURORA: Closed; Northern State Bank Assumes Deposits STEPHEN RIGGS: Can Hire Jennis & Bowen as Bankruptcy Counsel STERLING FINANCIAL: BDO Seidman Raises Going Concern Doubt STERLING FINANCIAL: Fitch Downgrades Issuer Default Rating to 'C' STEVE AND BARRY'S: Stone Barn Inches Toward Liquidation STEVEN CARTER ROSS: Case Summary & 19 Largest Unsecured Creditors STOCKHAM INTEREST: Files for Chapter 11 Bankruptcy in New Jersey SUPERCONDUCTOR TECH: Significant Losses Prompt Going Concern Doubt SUPERIOR NATIONAL: 9th Circ. Rejects En Banc Bid in $450M Case SUPERVALU INC: Bank Debt Trades at 1% Off in Secondary Market TAMARACK RESORT: To Be Liquidated in Chapter 7 TELANETIX INC: Posts $8.1MM Loss in 2009; Going Concern Removed THINKFILM LLC: Involuntary Chapter 11 Case Summary TPC GROUP: Moody's Affirms Corporate Family Rating at 'B1' TRIAD GUARANTY: Ernst & Young Raises Going Concern Doubt TRIBUNE CO: Trustee Blasts Tribune's Bonus Scheme TRICO MARINE: PwC Raises Going Concern Doubt TRUMP ENTERTAINMENT: Posts $699.8 Million Net Loss in 2009 UNITED AIR LINES: Bank Debt Trades at 15% Off in Secondary Market US FOODSERVICE: Bank Debt Trades at 12% Off in Secondary Market VAUGHAN FOODS: Securities to be Delisted from NasdaqCM on March 24 VERECLOUD INC: Amends Q2 Ended January 31; Posts $189,724 Net Loss VERENIUM CORP: Receives Going Concern Qualification from Auditor VIEWCREST INVESTMENTS: Case Summary & 1 Largest Unsec. Creditor VIKING PROPERTIES: Case Summary & 4 Largest Unsecured Creditors VINCENT PAUL ROSSI: Case Summary & 5 Largest Unsecured Creditors VISTEON CORP: Bank Debt Trades at 112.8% in Secondary Market VITESSE SEMICONDUCTOR: Lake Union Holds 5.0% of Common Stock WASHINGTON MUTUAL: Proposes Benefit Plan Settlements WASHINGTON MUTUAL: Equity Panel Proposes Delaware Counsel WASHINGTON MUTUAL: Wants $2.5-Bil. Mortgage Loan Claim Disallowed WAVE SYSTEMS: Posts $3.3 Million Net Loss in 2009 WEBDIGS INC: Posts $319,668 Net Loss in Q1 Ended January 31 WESTERN REFINING: Bank Debt Trades at 6% Off in Secondary Market WHOLESALE PROPERTIES: Sec. 341(a) Meeting Scheduled for April 12 WHOLESALE PROPERTIES: Taps Griffith Jay as Bankruptcy Counsel YANKEE CANDLE: Bank Debt Trades at 3% Off in Secondary Market YRC WORLDWIDE: Reports Improving First Quarter Shipment Trends * 2010 Bank Failures Now 37 after Advanta, 6 Others Closed * Junk Bonds Selling at Briskest Pace Since 2007 * Senate Eyes Expanded Ch. 12 for Small Businesses * BOND PRICING -- For the Week From March 15 to 19, 2010 ********* 1201 ERNSTON ROAD: Case Summary & 8 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: 1201 Ernston Road Realty Corp. 1201 Ernston Road South Amboy, NJ 08879 Bankruptcy Case No.: 10-17934 Chapter 11 Petition Date: March 18, 2010 Court: United States Bankruptcy Court District of New Jersey (Trenton) Debtor's Counsel: Anthony Sodono, III, Esq. Trenk, DiPasquale, et al. 347 Mt. Pleasant Avenue, Suite 300 West Orange, NJ 07052 Tel: (973) 243-8600 Fax: (973) 243-8600 Email: asodono@trenklawfirm.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A full-text copy of the Debtor's petition, including a list of its 8 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/njb10-17934.pdf The petition was signed by Ana Orisini, sole shareholder of the Company. 1974 REALTY ASSOCIATES: Case Summary & 5 Largest Unsec. Creditors ----------------------------------------------------------------- Debtor: 1974 Realty Associates 58-47 Francis Lewis Blvd. Oakland Gardens, NY 11364 Bankruptcy Case No.: 10-11417 Chapter 11 Petition Date: March 18, 2010 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Debtor's Counsel: Mark A. Frankel, Esq. Backenroth Frankel & Krinsky, LLP 489 Fifth Avenue New York, NY 10017 Tel: (212) 593-1100 Fax: (212) 644-0544 Email: mfrankel@bfklaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A full-text copy of the Debtor's petition, including a list of its 5 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/nysb10-11417.pdf The petition was signed by James Robinson. 199 BOWERY REST: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: 199 Bowery Rest. Group LLC 199 Bowery New York, NY 10002 Bankruptcy Case No.: 10-11378 Chapter 11 Petition Date: March 17, 2010 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Judge: Allan L. Gropper Debtor's Counsel: Gabriel Del Virginia, Esq. Law Offices of Gabriel Del Virginia 488 Madison Avenue, 19th Floor New York, NY 10022 Tel: (212) 371-5478 Fax: (212) 371-0460 Email: gabriel.delvirginia@verizon.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A full-text copy of the Debtor's petition, including a list of its 20 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/nysb10-11378.pdf The petition was signed by Nancy Brady, managing member of the Company. 2665 GENEVA LLC: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: 2665 GENEVA, LLC PO Box 590176 San Francisco, CA 94159 Bankruptcy Case No.: 10-30951 Type of Business: Chapter 11 Petition Date: March 18, 2010 Court: United States Bankruptcy Court Northern District of California (San Francisco) Debtor's Counsel: Jay T. Jambeck, Esq. The Schinner Law Group 96 Jessie St. San Francisco, CA 94105 Tel: (415) 369-9050 Email: jambeck@schinner.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The Debtor did not file a list of its 20 largest unsecured creditors when it filed its petition. ACCELR8 TECHNOLOGY: Posts $383,122 Net Loss in Q2 Ended Jan. 31 --------------------------------------------------------------- Accelr8 Technology Corporation filed its quarterly report on Form 10-Q, showing a net loss of $383,122 on $49,995 of revenue for the three months ended January 31, 2010, compared with a net loss of $154,330 on $364,493 of revenue for the same period ended January 31, 2009. The Company's balance sheet as of January 31, 2010, showed $4.5 million in assets, $1.4 million of debts, and $3.1 million of stockholders' equity. The Company has incurred significant operating losses. As of January 31, 2010, the Company has limited financial resources and has not been able to generate positive cash flow from operations. At January 31, 2010, as compared to July 31, 2009, cash and cash equivalents decreased by $753,215 from $862,076 to $108,861, or roughly 87.3%, and the Company's working capital decreased $708,545 or 90.2% from $785,114 to $76,569. "These factors raise substantial doubt about our ability to continue as a going concern." A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?5b52 Based in Denver, Colo., Accelr8 Technology Corporation (Amex: AXK) -- http://www.accelr8.com/-- develops and commercializes an integrated system to identify bacteria and their mechanisms of antibiotic resistance in critically ill patients. The Company develops materials and instrumentation for applications in medical diagnostics, basic research, drug discovery, and bio-detection in the United States. ACORN: Teeters on Bankruptcy Amid Funding Loss, Mismanagement ------------------------------------------------------------- Officials of The Association of Community Organizations for Reform Now said the community organizing group is on the verge of filing for bankruptcy, Huffington Post reports. According to the report, ACORN has been hit politically from the right and suffering from mismanagement along with a severe loss of government and other funds. The report relates that Bertha Lewis, ACORN's chief executive, blamed "relentless, well-funded right-wing attacks" reminiscent of the McCarthy era. Over the last six months, at least 15 of the group's 30 state chapters have disbanded and have no plans of re-forming, Acorn officials said. ACORN is a collection of community-based organizations in the United States that advocate for low- and moderate-income families by working on neighborhood safety, voter registration, health care, affordable housing, and other social issues. ACORN has over 400,000 members and more than 1,200 neighborhood chapters in over 100 cities across the U.S., as well as in Argentina, Canada, Mexico, and Peru. ACORN was founded in 1970 by Wade Rathke and Gary Delgado. Maude Hurd has been National President since 1990; Bertha Lewis was appointed CEO in 2008. ADEGBOYEGA ADESOKAN: Case Summary & 17 Largest Unsecured Creditors ------------------------------------------------------------------ Joint Debtors: Adegboyega Adesokan Adeyemi Adesokan 3502 Estates Lane Smyrna, GA 30080 Bankruptcy Case No.: 10-68092 Chapter 11 Petition Date: March 19, 2010 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Debtors' Counsel: Sims W. Gordon, Jr., Esq. The Gordon Law Firm PC Suite 700, 210 Interstate North Parkway, SE Atlanta, GA 30339-2234 Tel: (770) 955-5000 Fax: (770) 955-5010 Email: atllaw06@gordonlawpc.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company has assets of $1,076,911 and total debts of $1,599,390. A full-text copy of the Debtors' petition, including a list of their 17 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/ganb10-68092.pdf The petition was signed by the Joint Debtors. ADVANTA BANK: Closed; FDIC Pays Out Insured Deposits ---------------------------------------------------- The Federal Deposit Insurance Corp. approved the payout of the insured deposits of Advanta Bank Corp. in Draper, Utah. The bank was closed March 19 by the Utah Department of Financial Institutions, which appointed the FDIC as receiver. The FDIC was unable to find another financial institution to take over the banking operations of Advanta Bank Corp. As a result, checks to depositors for their insured funds will be mailed on Monday, March 22. Brokered deposits will be wired once brokers provide the FDIC with the necessary documents to determine if any of their clients exceed the insurance limits. Customers who placed deposits with brokers should contact the brokers directly for more information about the status of their funds. As of December 31, 2009, Advanta Bank Corp. had around $1.6 billion in total assets and $1.5 billion in total deposits. At the time of closing, the bank had an estimated $247,000 in uninsured funds. This amount is an estimate that is likely to change once the FDIC obtains additional information from the bank's customers. Customers who have questions about the transaction can call the FDIC toll-free at 1-800-537-4048. Customers with accounts in excess of $250,000 also should contact the toll-free number to set up a telephone appointment to discuss their deposits. Interested parties also can visit the FDIC's Web site at: http://www.fdic.gov/bank/individual/failed/advanta-ut.html Beginning March 22, customers of Advanta Bank Corp. with deposits exceeding $250,000 at the bank may visit the FDIC's Web page "Is My Account Fully Insured?" at: https://www2.fdic.gov/drrip/afi/index.asp Advanta Bank Corp. is the 33rd FDIC-insured institution to fail this year and the third in Utah since Centennial Bank, Ogden, was closed on March 5, 2010. The FDIC estimates the cost of the failure to its Deposit Insurance Fund to be around $635.6 million. AFFILIATED MEDIA: Emerges from Chapter 11 ----------------------------------------- Affiliated Media, Inc., has successfully emerged from chapter 11 protection. Affiliated Media, Inc., is the holding company for the MediaNews Group family of newspapers, the nation's second-largest newspaper publisher by circulation and owner of 54 daily newspapers, over 100 non-daily newspapers, as well as Web sites, television and radio broadcasters that serve markets in 12 states. As previously reported, the Hon. Kevin J. Carey of U.S. Bankruptcy Court for the District of Delaware confirmed the company's plan for reorganization on March 4, 2010, less than six weeks after the company filed for protection, on January 22, 2010. Prior to filing, the company had already reached agreement with its lenders on terms of the plan, which reduces the company's debt from approximately $930 million to approximately $165 million and involves no management change or change of control of the company. About Affiliated Media Denver, Colorado-based Affiliated Media, Inc., aka MediaNews Group, Inc., is the holding company of MediaNews Group Inc., which owns 54 daily newspapers including the Denver Post and the San Jose Mercury News, along with television and radio broadcasters. The Company filed for Chapter 11 bankruptcy protection on January 22, 2010 (Bankr. D. Delaware Case No. 10-10202). Hughes Hubbard & Reed LLP is the Debtor's general bankruptcy counsel, while Daniel B. Butz, Esq., at Morris, Nichols, Arsht & Tunnell LLP, is the Debtor's co-bankruptcy counsel. Wilkinson Barker Knauer, LLP, is the Debtor's special FCC counsel. Carl Marks Advisory Group LLC is the Debtor's restructuring advisor. Rothschild Inc. is the Debtor's financial advisor. Epiq Bankruptcy Solutions, LLC, is the Debtor's claims agent. Sitrick and Company Inc. is the Debtor's communications consultant. The Company listed $100,000,001 to $500,000,000 in assets and $500,000,001 to $1,000,000,000 in liabilities. AGRIUM INC: Moody's Assigns 'Ba1' Rating on Preferred Shelf ----------------------------------------------------------- Moody's Investors Service confirmed Agrium Inc.'s Baa2 ratings with a stable outlook and assigned prospective ratings on a shelf filing. This concludes the review of Agrium that was initiated February 25, 2009. The review was prompted by the announcement that Agrium had made an unsolicited offer for CF Industries Holdings, Inc. (CF -- unrated). Agrium management announced on March 11, 2010 that it would no longer pursue an acquisition of CF or the election of its nominees to the CF board of directors and will allow its offer to expire on March 22, 2010. These factors were considered by Moody's in reaching its decision to confirm Agrium's (Baa2 senior unsecured) ratings. Absent the challenges of a significant debt (and equity) financed acquisition, Agrium's diverse business mix and credit metrics comfortably support the Baa2 rating. Moreover, Moody's expects that management will maintain its historically conservative financial policies and investment discipline. Moody's favorably views the company's selling price advantage in the Pacific Northwest relative to the majority of North American nitrogen producers. Agrium's retail business ($6.2 billion in revenues in 2009) provides a more stable flow of cash than the wholesale fertilizer business albeit at lower margins. The confirmation is driven by four additional considerations: 1) the prospect of strong near term fertilizer supply/demand fundamentals and strong results from retail operations that generate robust credit metrics; 2) the prudent growth initiatives, both organic and through acquisition, and the track record of managing this growth in a manner supporting the Baa2 ratings; 3) management's willingness not to over pay for acquisition related growth; and 4) past history of active reduction of debt, after periods of extraordinary growth. Agrium's management successfully reduced debt by almost 28% from the end of June 2008 to the end of December 2009 to a book balance of $1.8 billion from $2.5 billion. Further bolstering Agrium's credit profile is a cash and marketable security balance of $1 billion at the end of 2009. The rating outlook is stable in light of robust industry conditions and anticipated positive free cash flow generation. Moody's believe that Agrium will maintain its historically conservative financial policies and investment discipline. Moody's expects management to lower its debt position following sizeable debt financed acquisitions. Confirmations Issuer: Agrium Inc. -- Senior Unsecured Shelf, Baa2 -- Senior unsecured notes and debentures at Baa2; Assignment -- Shelf ratings for Senior secured (P) Baa2 and Preferred (P) Ba1 Moody's most recent announcement concerning the ratings for Agrium was on February 25, 2009. The ratings were placed under review for possible downgrade. The review was prompted by the announcement that Agrium had made an unsolicited offer for CF. Agrium Inc., headquartered in Calgary, Alberta, Canada, is a leading global producer and marketer of agricultural nutrients and industrial products and a major retail supplier of agricultural products and services in both North and South America. Agrium produces and markets three primary groups of nutrients: nitrogen, phosphate and potash as well as controlled release fertilizers and micronutrients. Agrium reported net sales of US$9.1 billion for the last 12 months ending December 31, 2009. AMERICAN INT'L: Ex-CEO Has $278MM Deal to Sell Shares to UBS ------------------------------------------------------------ Former American International Group chairman and CEO Maurice R. "Hank" Greenberg's Starr International Company on March 17, 2010, entered into a final agreement for the variable pre-paid forward sale of up to 10,000,000 shares of AIG common stock pursuant to four stock purchase agreements each with respect to 2,500,000 shares of Common Stock, by and between Starr International and UBS Securities LLC; and four pledge agreements, each with respect to 2,500,000 shares of Common Stock, among Starr International, UBS and UBS AG, Stamford Branch, as collateral agent, each dated as of March 15, 2010. Starr International will receive aggregate proceeds of $278,150,032.61 under the VPF Transaction. The final terms of the VPF Transaction, including the Base Amount of shares deliverable by Starr International upon settlement, were determined in unsolicited brokerage transactions by UBS -- or its affiliate -- over a specified execution period beginning on March 15, 2010, in accordance with the Securities and Exchange Commission's interpretative letter to Goldman, Sachs & Co., dated December 20, 1999. The VPF Transaction provides that on the third Business Day (as defined in the VPF Contracts) after each of the 34.5-month, 35.5- month, 36.5-month and 37.5-month anniversaries of March 17, 2010, Starr International will deliver a number of shares of Common Stock to UBS (or, at the election of Starr International, the cash equivalent of such shares) equal to the product of one-quarter of the Base Amount and a ratio -- Settlement Ratio -- determined as follows: (a) if the daily volume weighted average price per share of the Common Stock over the 5 Business Day period ending on, and including, the date three Business Days before the corresponding Settlement Date -- Settlement Price -- is less than or equal to $31.2216 -- Floor Level -- the Settlement Ratio shall be 1; (b) if the Settlement Price is greater than the Floor Level but less than or equal to $46.8324 per share -- Cap Level -- the Settlement Ratio shall be the Floor Level divided by the Settlement Price; and (c) if the Settlement Price is greater than the Cap Level, the Settlement Ratio shall be the quotient of (i) the sum of the Floor Level and the excess of the Settlement Price over the Cap Level, divided by (ii) the Settlement Price. Starr, et al., may from time to time enter into privately negotiated derivative transactions to hedge the market risk of some or all of their positions in the Common Stock. Starr disclosed that as of March 17, 2010, it may be deemed to beneficially own 13,979,470 or roughly 10.4% of AIG Shares. About AIG Based in New York, American International Group, Inc., is the leading international insurance organization with operation in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. In September 2008, AIG experienced a liquidity crunch when its credit ratings were downgraded below "AA" levels by Standard & Poor's, Moody's Investors Service and Fitch Ratings. On September 16, 2008, the Federal Reserve Bank created an $85 billion credit facility to enable AIG to meet increased collateral obligations consequent to the ratings downgrade, in exchange for the issuance of a stock warrant to the Fed for 79.9% of the equity of AIG. The credit facility was eventually increased to as much as $182.5 billion. AIG has sold a number of its subsidiaries and other assets to pay down loans received from the U.S. government, and continues to seek buyers of its assets. AMERICAN NAT'L: Closed; The National Bank & Trust Assumes Deposits ------------------------------------------------------------------ American National Bank, Parma, Ohio, was closed March 19 by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with The National Bank and Trust Company, Wilmington, Ohio, to assume all of the deposits of American National Bank. The sole branch of American National Bank will reopen on Monday, March 22 as a branch of The National Bank and Trust Company. Depositors of American National Bank will automatically become depositors of The National Bank and Trust Company. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from The National Bank and Trust Company that it has completed systems changes to allow other The National Bank and Trust Company branches to process their accounts as well. As of December 31, 2009, American National Bank had around $70.3 million in total assets and $66.8 million in total deposits. The National Bank and Trust Company did not pay the FDIC a premium for the deposits of American National Bank. In addition to assuming all of the deposits of the failed bank, The National Bank and Trust Company agreed to purchase essentially all of the assets. The FDIC and The National Bank and Trust Company entered into a loss-share transaction on $49.8 million of American National Bank's assets. The National Bank and Trust Company will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html Customers who have questions about the transaction can call the FDIC toll-free at 1-800-823-3215. Interested parties also can visit the FDIC's Web site at: http://www.fdic.gov/bank/individual/failed/amer-natl-oh.html The FDIC estimates that the cost to the Deposit Insurance Fund will be $17.1 million. The National Bank and Trust Company's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to all alternatives. American National Bank is the 31st FDIC-insured institution to fail in the nation this year, and the first in Ohio. The last FDIC-insured institution closed in the state was AmTrust Bank, Cleveland, on December 4, 2009. ANDRE CHREKY INC: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Andre Chreky, Inc. 1604 K Street, N.W. Washington, DC 20006 Bankruptcy Case No.: 10-00267 Chapter 11 Petition Date: March 19, 2010 Court: United States Bankruptcy Court United States Bankruptcy Court for the District of Columbia (Washington, D.C.) Debtor's Counsel: Richard Edwin Lear, Esq. Holland & Knight LLP 2099 Pennsylvania Avenue NW, Suite 100 Washington, DC 20006 Tel: (202) 457-7049 Email: richard.lear@hklaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors is available for free at: http://bankrupt.com/misc/dcb10-00267.pdf The petition was signed by Serena Chreky, vice president of the company. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Andre Chreky 10-00268 3/19/10 Assets: $1 million to $10 million Debts: $1 million to $10 million ANGAUR LLC: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: ANGAUR, LLC 6530 S Decatur Blvd Las VegaS, NV 89118-1220 Bankruptcy Case No.: 10-14331 Chapter 11 Petition Date: March 17, 2010 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Mike K. Nakagawa Debtor's Counsel: Craig S. Dunlap, Esq. Fennemore Craig, P.C. 300 S. Fourth Street #1400 Las Vegas, NV 89101 Tel: (702) 692-8000 Email: cdunlap@fclaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors is available for free at: http://bankrupt.com/misc/nvb10-14331.pdf The petition was signed by Gaurang Parikh, manager of the company. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Balaji Properties Investment, LLC 10-14336 3/17/10 Assets: $1 million to $10 million Debts: $1 million to $10 million ANGIOTECH PHARMA: Dec. 31 Balance Sheet Upside-Down by $313MM ------------------------------------------------------------- Angiotech Pharmaceuticals, Inc., has filed with the Securities and Exchange Commission its annual report on Form 10-K for the year ended December 31, 2009. At December 31, 2009, the Company had total assets of $370,059,000 against total current liabilities of $63,186,000 and total non- current liabilities of $620,160,000, resulting in shareholders' deficit of $313,287,000. The Company posted net losses for the past three years, reporting a net loss of $22,868,000 for 2009, a net loss of $741,176,000 for 2008 and a net loss of $65,940,000 for 2007. A full-text copy of Angiotech's annual report is available at no charge at http://ResearchArchives.com/t/s?5a62 Vancouver, Canada-based Angiotech Pharmaceuticals, Inc. (NASDAQ: ANPI, TSX: ANP) -- http://www.angiotech.com/-- is a global specialty pharmaceutical and medical device company. Angiotech discovers, develops and markets innovative treatment solutions for diseases or complications associated with medical device implants, surgical interventions and acute injury. Angiotech Pharmaceuticals carries 'CCC' corporate credit ratings from Standard & Poor's. APPALACHIAN COMMUNITY: Community & Southern Bank Assumes Deposits ----------------------------------------------------------------- Appalachian Community Bank, Ellijay, Georgia, was closed March 19 by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Community & Southern Bank, Carrollton, Georgia, to assume all of the deposits of Appalachian Community Bank. The ten branches of Appalachian Community Bank reopened on Saturday as branches of Community & Southern Bank. This transaction also includes all of Appalachian Community Bank's branches that operated under the trade name of Gilmer County Bank. The closure does not involve Appalachian Community Bank F.S.B., McCaysville, Georgia, or any of its branch locations. Appalachian Community Bank F.S.B., McCaysville will continue to operate as usual. Depositors of Appalachian Community Bank will automatically become depositors of Community & Southern Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from Community & Southern Bank that it has completed systems changes to allow other Community & Southern Bank branches to process their accounts as well. As of December 31, 2009, Appalachian Community Bank had around $1.01 billion in total assets and $917.6 million in total deposits. Community & Southern Bank will pay the FDIC a premium of one percent to assume all of the deposits of Appalachian Community Bank. In addition to assuming all of the deposits of the failed bank, Community & Southern Bank agreed to purchase essentially all of the assets. The FDIC and Community & Southern Bank entered into a loss-share transaction on $798.6 million of Appalachian Community Bank's assets. Community & Southern Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss- share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html Customers who have questions about the transaction can call the FDIC toll-free at 1-800-894-1696. Interested parties also can visit the FDIC's Web site at: http://www.fdic.gov/bank/individual/failed/appalachian.html The FDIC estimates that the cost to the Deposit Insurance Fund will be $419.3 million. Community & Southern Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to all alternatives. Appalachian Community Bank is the 34th FDIC-insured institution to fail in the nation this year, and the fourth in Georgia. The last FDIC-insured institution closed in the state was Century Security Bank, Duluth, earlier on Friday, March 19. ASPHALT CONCRETE: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Asphalt Concrete Recycling Center, LLC 65 Newman Lane Mound House, NV 89706 Bankruptcy Case No.: 10-50910 Chapter 11 Petition Date: March 19, 2010 Court: United States Bankruptcy Court District of Nevada (Reno) Debtor's Counsel: Alan R. Smith, Esq. 505 Ridge St Reno, NV 89501 Tel: (775) 786-4579 Email: mail@asmithlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company has assets of $2,004,530, and total debts of $3,174,576. A full-text copy of the Debtor's petition, including a list of its 20 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/nvb10-50910.pdf The petition was signed by Scott Freidus, managing member of the Company. ARAMARK CORP: Bank Debt Trades at 3% Off in Secondary Market ------------------------------------------------------------ Participations in a syndicated loan under which ARAMARK Corp. is a borrower traded in the secondary market at 97.09 cents-on-the- dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.91 percentage points from the previous week, The Journal relates. The Company pays 188 basis points above LIBOR to borrow under the facility. The bank loan matures on Jan. 26, 2014, and carries Moody's Ba3 rating and Standard & Poor's BB rating. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. ARAMARK Corp. -- http://www.aramark.com/-- is the world's #3 contract foodservice provider (behind Compass Group and Sodexo) and the #2 uniform supplier (behind Cintas) in the US. It offers corporate dining services and operates concessions at many sports arenas and other entertainment venues, while its ARAMARK Refreshment Services unit is a leading provider of vending and beverage services. The Company also provides facilities management services. Through ARAMARK Uniform and Career Apparel, the company supplies uniforms for healthcare, public safety, and technology workers. Founded in 1959, ARAMARK is owned by an investment group led by chairman and CEO Joseph Neubauer. ARAMARK Corp. carries a 'B1' long term corporate family rating from Moody's, a 'B+' long term issuer credit ratings from Standard & Poor's, and a 'B' long term issuer default rating from Fitch. ARIAD PHARMA: Deloitte & Touche Raises Going Concern Doubt ---------------------------------------------------------- On March 16, 2010, ARIAD Pharmaceuticals, Inc., filed its annual report on Form 10-K for the year ended December 31, 2009. Deloitte & Touche LLP, in Boston, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that of the Company's recurring losses from operations and negative operating cash flows. The Company reported a net loss of $80.0 million on $8.3 million of revenue for the year ended December 31, 2009, compared with a net loss of $71.1 million on $7.1 million of revenue for 2008. The Company's balance sheet as of Dec. 31, 2009, showed $65.0 million in assets and $154.0 million of debts, for a stockholders' deficit of $89.0 million. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5ad9 Cambridge, Mass.-based ARIAD Pharmaceuticals, Inc., focuses on novel, molecularly targeted therapies to treat solid tumors and hematologic cancers, as well as the spread of primary tumors to distant sites. The Company's lead cancer product candidate, ridaforolimus, is an internally discovered, potent inhibitor of the protein mTOR. Blocking mTOR creates a starvation-like effect in cancer cells by interfering with cell growth, division, metabolism and angiogenesis. ASARCO LLC: Sues Sterlite Over $2.6 Bil. Purchase Agreement ----------------------------------------------------------- Bankruptcy Law360 reports that Asarco LLC has accused Sterlite Inc. of violating a May 2008 purchase and sale agreement when it aborted a bid to buy the then-bankrupt mining company for $2.6 billion and to assume millions of dollars in its contractual obligations and liabilities. Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. ASARCO LLC filed for Chapter 11 protection on August 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). Attorneys at Baker Botts L.L.P., and Jordan, Hyden, Womble & Culbreth, P.C., represented the Debtor in its restructuring efforts. On December 9, 2009, Grupo Mexico, S.A.B. consummated the Chapter 11 plan that it sponsored for Asarco LLC. The Plan, which was confirmed both by the bankruptcy and district courts, reintegrated Asarco LLC back to parent Grupo Mexico concluding the four-year Chapter 11 proceeding. Bankruptcy Creditors' Service, Inc., publishes ASARCO Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by ASARCO LLC and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) ATRIUM CORP: Reaches Settlement with Unsecured Creditors -------------------------------------------------------- Atrium Companies Inc. disclosed that the United States Bankruptcy Court for the District of Delaware has granted approval of the Company's Disclosure Statement and has authorized the Company to begin soliciting votes with respect to its Plan of Reorganization from the requisite creditor groups. A hearing at which the Court will be asked to confirm Atrium's Plan of Reorganization has been scheduled for April 28, 2010. Importantly, the Plan of Reorganization, as modified, incorporates a global settlement among the Company, the secured lenders and the statutory committee of unsecured creditors appointed in the Company's Chapter 11 cases. The settlement resolves all of the Creditors' Committee's potential objections to the Plan. "The Court's ruling marks a major milestone as we move closer to successfully completing our debt restructuring," said Gregory T. Faherty, President and Chief Executive Officer of Atrium. "Upon completion of the restructuring, Atrium will have a substantially stronger balance sheet with far less debt. We are excited about the opportunities ahead and remain focused on providing our customers with the outstanding quality, value and service they associate with Atrium." The Court also granted final approval for Atrium to access its $40 million Debtor-in-Possession (DIP) financing. On January 21, 2010, the Court issued interim approval for Atrium to access this facility. As previously announced, on January 20, 2010, Atrium reported that it had reached an agreement with more than two-thirds of its senior secured lenders on an agreement to support a "pre- negotiated" restructuring of its balance sheet to reduce the Company's outstanding debt by more than $350 million, or more than 50 percent of its existing debt. To implement the balance sheet restructuring, the Company filed voluntary Chapter 11 petitions with the United States Bankruptcy Court in Wilmington, Delaware, and the Company's Canadian subsidiary initiated reorganization proceedings under the Companies' Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice in Toronto. The Plan of Reorganization, as amended, contemplates an equity investment from Kenner and Company and Golden Gate Capital in return for the equity of the reorganized Company, as well as a refinancing of the senior secured debt. The Company and its creditor groups have received a similar proposal from Griffon Corporation, a strategic investor. To the extent the Kenner investment or any other comparable new equity investment is not completed under the terms set forth in the amended Plan, the Plan contemplates that the senior secured lenders' claims will be satisfied through the issuance of new secured loans and conversion of existing debt to equity in the reorganized Company. The Plan provides for Atrium's current management team to remain in place under either scenario. The main case number is 10-10150 (BLS). The case is pending before the Honorable Brendan Linehan Shannon in the United States Bankruptcy Court for the District of Delaware. About Atrium Headquartered in Dallas, Texas, Atrium Corporation -- http://www.atrium.com/-- is a manufacturer and supplier of residential windows and doors in North America. The Company has 5,100 employees and 63 manufacturing facilities and distribution centers in 21 U.S. states, Canada and Mexico. Atrium Corporation and various affiliates filed for Chapter 11 bankruptcy protection on January 20, 2010 (Bankr. D. Del. Case No. 10-10150). The Company's Canadian subsidiary also initiated reorganization proceedings under the Companies' Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice in Toronto. Richard M. Cieri, Esq.; Joshua A. Sussberg, Esq.; and Brian E. Schartz, Esq., at Kirkland & Ellis LLP, and Dominic E. Pacitti, Esq.; and Michael W. Yurkewicz, Esq., at Klehr Harrison Harvey Branzburg LLP, assist the U.S. Debtors in their restructuring efforts. Deloitte Financial Advisory Services LLP is the Debtors' financial advisor. Moelis & Company is the Debtors' investment banker. Goodmans LLP is the Debtors' Canadian counsel. Garden City Group Inc. is the Debtors' claims agent. As of December 31, 2009, the Debtors listed $655.9 million in consolidated debts, but didn't state their consolidated assets. Atrium Corp.'s petition says assets are up to $500,000 while debts range from $100 million to $500 million. AVETA INC: S&P Affirms Counterparty Credit Ratings at 'B' --------------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed its 'B' counterparty credit ratings and positive outlook on Aveta Inc., NAMM Holdings Inc., and MMM Holdings Inc. Standard & Poor's subsequently withdrew the ratings at the company's request. Aveta recently announced that it is seeking syndication of a $360 million credit facility consisting of a $300 million term loan and a $60 million revolver maturing in March 2015. The company will use the proceeds from the term loan to refinance its existing facility, to pay a dividend to shareholders, and for general corporate purposes. "Although the increased debt results in more pressure for dividends from Aveta's operating companies and reduces financial flexibility, S&P believes that the impact warrants a rating change or outlook revision," said Standard & Poor's credit analyst Neal Freedman. At year-end 2010, S&P expects that Aveta's debt to EBITDA will be less than 1.5x, with debt to capital slightly higher than in 2009. BANK OF HIAWASSEE: Closed; Citizens South Bank Assumes Deposits --------------------------------------------------------------- Bank of Hiawassee, Hiawassee, Georgia, was closed March 19 by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Citizens South Bank, Gastonia, North Carolina, to assume all of the deposits of Bank of Hiawassee. The five branches of Bank of Hiawassee reopened Saturday as branches of Citizens South Bank. This transaction includes a branch office of Bank of Hiawassee in Blue Ridge, Georgia, operating under the business name of Bank of Blue Ridge, and the branch office in Blairsville, Georgia, operating under the name of the Bank of Blairsville. Depositors of Bank of Hiawassee will automatically become depositors of Citizens South Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from Citizens South Bank that it has completed systems changes to allow other Citizens South Bank branches to process their accounts as well. As of December 31, 2009, Bank of Hiawassee had around $377.8 million in total assets and $339.6 million in total deposits. Citizens South Bank will pay the FDIC a premium of one percent to assume all of the deposits of Bank of Hiawassee. In addition to assuming all of the deposits of the failed bank, Citizens South Bank agreed to purchase essentially all of the assets. The FDIC and Citizens South Bank entered into a loss-share transaction on $232.6 million of Bank of Hiawassee's assets. Citizens South Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html Customers who have questions about the transaction can call the FDIC toll-free at 1-800-508-8289. Interested parties also can visit the FDIC's Web site at: http://www.fdic.gov/bank/individual/failed/bankofhiawassee.html The FDIC estimates that the cost to the Deposit Insurance Fund will be $137.7 million. Citizens South Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to all alternatives. Bank of Hiawassee is the 35th FDIC- insured institution to fail in the nation this year, and the fifth in Georgia. The last FDIC-insured institution closed in the state was Appalachian Community Bank, Ellijay, earlier on Friday, March 19. BEDMINSTER INTERNATIONAL LIMITED: Chapter 15 Case Summary --------------------------------------------------------- Chapter 15 Petitioner: Tobias Hoefer Schreiber & Keilwerth Musikinstrumente Industriestrasse 17 Nauheim 64569 Germany Chapter 15 Debtor: Bedminster International Limited (in Provisional Liquidation) Oyster Point, Temple Road, Blackrock, Co Dublin, Ireland Chapter 15 Case No.: 10-31134 Chapter 15 Petition Date: March 19, 2010 Court: Northern District of Indiana (South Bend Division) Judge: Harry C. Dees, Jr. Chapter 15 Petitioner's Counsel: Jeffery A. Johnson, Esq. 4100 Edison Lakes Parkway Mishawaka, IN 46545 Tel: (574) 243-4100 Email: jjohnson@maylorber.com Jennifer ElBenni, Esq. May Oberfell Lorber 4100 Edison Lakes Parkway, Suite 100 Mishawaka, IN 46545 Tel: (574) 243-4100 Email: jelbenni@maylorber.com Patricia E. Primmer, Esq. 4100 Edison Lakes Parkway Mishawaka, IN 46545 Tel: (574) 243-4100 Email: pprimmer@maylorber.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000,000 BIG HEART CITY: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Big Heart City LLC 1201 Las Vegas Blvd. S. Las Vegas, NV 89104 Bankruptcy Case No.: 10-14428 Chapter 11 Petition Date: March 18, 2010 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Linda B. Riegle Debtor's Counsel: David J. Winterton, Esq. 211 N. Buffalo Dr. #A Las Vegas, NV 89145 Tel: (702) 363-0317 Email: david@davidwinterton.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A full-text copy of the Debtor's petition, including a list of its 3 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/nvb10-14428.pdf The petition was signed by Phisak Chakkaphak, manager of the Company. BIOLASE TECHNOLOGY: BDO Seidman Raises Going Concern Doubt ---------------------------------------------------------- On March 19, 2009, BIOLASE Technology, Inc., filed its annual report on Form 10-K for the year ended December 31, 2009. BDO Seidman, LLP, in Costa Mesa, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered recurring losses from operations, has had declining revenues, has limited financial resources at December 31, 2009, and is substantially dependent upon its primary distributor for future purchases of the Company's products. The Company reported a net loss of $3.0 million on $43.3 million of revenue for the year ended December 31, 2009, compared with a net loss of $9.1 million on $64.6 million of revenue for 2008. The Company's balance sheet as of Dec. 31, 2009, showed $22.2 million in assets, $14.2 million of debts, and $7.9 million of stockholders' equity. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5b56 Irvine, Calif.-based BIOLASE Technology, Inc. is medical- technology company that develops, manufactures and markets lasers, related products and services focused on technologies for improved applications and procedures in dentistry and medicine. BLOCKBUSTER INC: S&P Cuts Rating to 'CC' on Bankruptcy Warning -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Dallas-based Blockbuster Inc. to 'CC' from 'CCC'. The 'CC' rating indicates that, in S&P's opinion, Blockbuster is highly vulnerable to default. The outlook is negative. In addition, S&P's '3' recovery rating, indicating its expectation for meaningful (50%-70%) recovery in the event of a payment default, on the company's senior secured debt and its '6' recovery rating, indicating its expectation for negligible (0%-10%) recovery in the event of payment default, remain unchanged. The downgrade follows the Company's Form 10-K filing in which Blockbuster's management indicated that it may file for Chapter 11 bankruptcy protection. In addition, the Company indicated that it would try to convert some of its large debt load to equity and possibly modify the terms of its secured notes. The Company had a substantial loss of $517.6 million from continuing operations for the year ended Jan. 3, 2010, because of increasingly competitive and evolving industry conditions that eroded the Company's operating results and cash flows. Also, the company's auditors, PricewaterhouseCoopers LLP, stated that "these factors raise substantial doubt about the Company's ability to continue as a going concern." BLUEGRASS ABS: Remarketing Agent Change Won't Move Fitch Ratings ---------------------------------------------------------------- Fitch Ratings was notified of the intention to change the Remarketing Agent of Bluegrass ABS CDO II Ltd. to AIG Financial Securities Corp., a subsidiary of AIG Financial Products Corp., after Deutsche Bank Securities Inc. resigned from the role. In reviewing the amended Remarketing Agent document, Fitch considered its current counterparty criteria 'Counterparty Criteria for Structured Finance Transactions' dated Oct. 22, 2009. The senior tranches of Bluegrass II are rated 'CCC' for term notes and 'C' for money market notes based on the credit quality of the underlying portfolio. Under the criteria, there is no minimum counterparty rating for notes rated 'CCC' or lower. Therefore, the change in counterparties will not have an impact on the ratings of Bluegrass II. This commentary does not address whether or not the Remarketing Agent replacement is permitted by the terms of the governing documents for Bluegrass II. Nor does it address whether the counterparty change is in the best interests of, or prejudicial to, some or all of the holders of the transaction. Fitch emphasizes that the scope of its review of the terms of the replacement was solely to determine whether the changes proposed in the amended Remarketing Agent Agreement would result in a rating action on Bluegrass II. This review has not addressed whether or not the replacement is permitted by the transaction's governing documents. It remains the exclusive responsibility of the noteholders to perform their own risk analysis and determine if the amended Remarketing Agent Agreement is acceptable to them. Fitch is not a party to the transaction and therefore does not provide consent or approval, as that remains the sole preserve of the transaction parties. Fitch expects to be notified by the trustee or AIG Financial Products Corp. when or if the proposed amended Remarketing Agent Agreement is executed either in part or in its entirety. BLUEKNIGHT ENERGY: Delays 10-K Filing; Expects $16.5-Mil. Loss -------------------------------------------------------------- In a regulatory filing Wednesday, Blueknight Energy Partners, L.P., disclosed that it was unable to file, without unnecessary effort and expense, its annual report on Form 10-K for the year ended December 31, 2009, by the March 16, 2010 due date. In the Form 12-b-25 filing, the Partnership stated that due to the continued uncertainty relating to its future cash flows as well as the related covenants and other restrictions under its credit facility, there exists substantial doubt as to its ability to continue as a going concern. The Partnership related that it continues to experience increased expenses as a result of events surrounding the bankruptcy of its former parent company, SemGroup, L.P., including increased expenses under the credit facility. In addition, the Partnership said it could be materially and adversely affected by the securities class action litigation and other actions pending against it. SemGroup LP and various subsidiaries emerged from Chapter 11 on November 30, 2009. The Partnership and SemGroup Energy Partners G.P., L.L.C., the general partner of the Partnership, were not included in the bankruptcy filings. The Partnership said that that the report of its independent auditors on its financial statements for the fiscal year ended December 31, 2009, may include a modification relating to the Partnership's ability to continue as a going concern, which constitutes an event of default under the credit agreement. If an event of default occurred, the Partnership said it would no longer be permitted to borrow funds from the lenders under the revolving credit facility portion of its credit agreement. "Additionally, the lenders may, among other remedies, terminate their commitments under the revolving credit facility, declare all outstanding amounts under the credit agreement immediately due and payable and exercise all rights and remedies available to the lenders under the credit agreement and related loan documents, including sweeping the cash in the Partnership's bank accounts and foreclosing against the Partnership's assets. The Partnership expects a net loss of approximately $16.5 million for the year ended December 31, 2009, compared to net income of $17.8 million for the year ended December 31, 2008. A full-text copy of the Form 12-b-25 filing is available at no charge at http://researcharchives.com/t/s?5b2a About Blueknight Energy Blueknight Energy Partners, L.P., formerly SemGroup Energy Partners, L.P. -- http://www.BKEP.com/-- owns and operates a diversified portfolio of complementary midstream energy assets consisting of approximately 8.2 million barrels of crude oil storage located in Oklahoma and Texas, approximately 6.7 million barrels of which are located at the Cushing, Oklahoma interchange, approximately 1,150 miles of crude oil pipeline located primarily in Oklahoma and Texas, over 200 crude oil transportation and oilfield services vehicles deployed in Kansas, Colorado, New Mexico, Oklahoma and Texas and approximately 7.4 million barrels of combined asphalt and residual fuel storage located at 46 terminals in 23 states. The Partnership provides crude oil terminalling and storage services, crude oil gathering and transportation services and asphalt services. The Partnership is based in Tulsa, Oklahoma. BLUE DOLPHINS: Receives NASDAQ Delisting Notice ----------------------------------------------- Blue Dolphin Energy Company received a notification letter from NASDAQ on March 16, 2010, for failure to meet the per share minimum bid price requirement for continued listing as set forth in Marketplace Rule 5550(a)(2). To appeal the determination and avoid delisting, Blue Dolphin will request a hearing before a NASDAQ Listing Qualifications Panel prior to March 23, 2010, and expects to have a hearing date scheduled in 30 to 45 days. Pending a decision by the Panel, Blue Dolphin's common stock will remain listed and traded on The NASDAQ Capital Market. About Blue Dolphin Blue Dolphin Energy Company -- http://www.blue-dolphin.com.-- is engaged in the gathering and transportation of natural gas and condensate and production of oil and gas in the Gulf of Mexico. BLUE RIDGE MEDICAL: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Blue Ridge Medical Oncology, PLLC 353 Worth Street Cleveland, TN 37311 Bankruptcy Case No.: 10-11658 Chapter 11 Petition Date: March 19, 2010 Court: United States Bankruptcy Court Eastern District of Tennessee (Chattanooga) Judge: John C. Cook Debtor's Counsel: Bruce C. Bailey, Esq. Chambliss, Bahner and Stophel Two Union Square, Suite 1000 Chattanooga, TN 37402 Tel: (423) 756-3000 Fax: (423) 265-9574 Email: bbailey@cbslawfirm.com Harold L North, Jr., Esq. Chambliss, Bahner & Stophel, P. C. 1000 Tallan Building Two Union Square Chattanooga, TN 37402 Tel: (423) 756-3000 Fax: (423) 265-9574 Email: hnorth@cbslawfirm.com Theresa Light Critchfield, Esq. Chambliss, Bahner & Stophel, P.C. 1000 Tallan Bldg. Two Union Square Chattanooga, TN 37405 Tel: (423) 757-0231 Fax: (423) 508-1231 Email: tlcritchfield@cbslawfirm.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company has assets of $1,407,774, and total debts of $3,598,862. A list of the Company's 20 largest unsecured creditors is available for free at: http://bankrupt.com/misc/tneb10-11658.pdf The petition was signed by Sylvia L. Krueger, M.D. BLUFFS AT BRUSH: Files for Chapter 11 Bankruptcy in Missouri ------------------------------------------------------------ Rob Roberts at Business Journal of Kansas City reports that Bluffs at Brush Creek filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of Missouri. Bluffs at Brush Creek is an apartment project. The project listed assets of $5.6 million and liabilities of $3.2 million. The debts include $3 million owed on a $5.6 million mortgage held by Litton Loan Servicing of Houston and $500,000 owed on a second mortgage held by AWM Real Estate Fund in Overland Park. Lydia Carson of Carson Law Center in Kansas City represents the Company. BUCYRUS COMMUNITY: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Bucyrus Community Hospital, Inc. 629 N. Sandusky Avenue Bucyrus, OH 44820 Bankruptcy Case No.: 10-61078 Chapter 11 Petition Date: March 19, 2010 Court: United States Bankruptcy Court Northern District of Ohio (Canton) Judge: Russ Kendig Debtor's Counsel: Melissa Asbrock, Esq. McDonald Hopkins LLC 600 Superior Ave., E., #2100 Cleveland, OH 44114 Tel: (216) 348-5400 Fax: (216) 348-5474 Email: masbrock@mcdonaldhopkins.com Shawn M. Riley, Esq. McDonald Hopkins LLC 600 Superior Ave, E, #2100 Cleveland, OH 44114 Tel: (216) 348-5400 Email: sriley@mcdonaldhopkins.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $$10,000,001 to $50,000,000 The petition was signed by Glen A. McMurray, DDS, the company's board chairman. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Bucyrus Community Physicians, Inc. 10-61081 3/19/10 Assets: $500,000 to $1 million Debts: $500,000 to $1 million A. Bucyrus Community Hospital, Inc.'s List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Depuy Orthopaedics Inc. Trade Debt $676,225 700 Orthopaedic Drive Warsaw, IN 46582 Stryker Orthopaedics Trade Debt $453,886 Corporation 2825 Airview Blvd. Kalamazoo, MI 49002 Sodexo, Inc. & Affiliates Trade Debt $440,046 9801 Washington Blvd. Gaithersburg, MD 20878 Quadramed Corp. Software $292,169 Premier Health Care Professional Services $257,611 Inc. 332 Congress Park Drive Dayton, OH 45459 Owens & Minor Trade Debt $226,451 Hematology/Oncology Professional Services $181,875 Specialists of North West Ohio Donley's Inc. Contractor $159,605 Niche Anesthesia, LLC Professional Services $133,470 Advanced Anesthesiology, Professional Services $130,363 LLC J Jay Guth, M.D. LLC Professional Fees $107,295 Bucyrus Orthopedics & Sports Medicine Cleveland Clinic Professional Services $101,923 Reference Laboratory Ohio Imaging Centers at Professional Services $94,152 Bucyrus LLC Ohio Hospital Association Third Party $74,189 Administrator NH-PM, Inc. Professional Services $68,950 c/o National Healing Corp. Beckman Coulter Leases $62,337 Insight Health Professional Services $56,269 Stand Energy Corporation Utilities $54,085 HMC Group Professional Services $49,586 Oberlanders Tree & Trade Debt $48,864 Landscape B. Bucyrus Community Physicians, Inc.'s List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Shealy Group Management Services $92,023 OSU Internal Medicine, Professional Services $48,900 LLC Greenway Medical Software $20,607 Technologies, Inc. Anthem Blue Cross and Medical Provider $15,461 Blue Shield Grant Hope Professional Services $14,400 Marion Radiology Professional Services $14,080 Association Sallie Mae Servicing Student Loan for $11,084 Doctor CenturyLink Utilities $8,381 Chris Johnson Professional Services $6,800 Todd Strickland Professional Services $6,675 Professional Office Lease $4,200 Properties Accent Corporate Professional Services $3,603 Headquarters MedQuist, Inc. Professional Services $3,141 Corporate Offices Neurometrix, Inc. Trade Debt $2,540 Bill N. Vance Jr. Lease $2,500 Padula Family Ltd. Lease $2,387 Medical Doctors Trade Debt $2,082 Associates, Inc. Yanke Bionics Clinics, Trade Debt $1,593 Inc. Clinical Support Services Trade Debt $1,557 WOHZ Television Advertisement $1,394 BURLINGTON COAT: Bank Debt Trades at 7% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Burlington Coat Factory Warehouse Corp. is a borrower traded in the secondary market at 93.22 cents-on-the-dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 1.16 percentage points from the previous week, The Journal relates. The Company pays 225 basis points above LIBOR to borrow under the facility. The bank loan matures on May 28, 2013, and carries Moody's B3 rating and Standard & Poor's B- rating. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. About Burlington Coat Burlington Coat Factory Warehouse Corp. operates stores in 44 states and Puerto Rico, which sell apparel, shoes and accessories for men, women and children. A majority of the stores offers a home furnishing and linens department and a juvenile furniture department. As of Sept. 4, 2009, the Company operates 433 stores under the names "Burlington Coat Factory Warehouse" (415 stores), "MJM Designer Shoes" (15 stores), "Cohoes Fashions" (two stores), and "Super Baby Depot" (one store) in 44 states and Puerto Rico. As reported by the Troubled Company Reporter on June 29, 2009, Fitch Ratings affirmed its Issuer Default Rating at 'B-'; US$800 million asset-based revolver rating at 'B+/RR1'; US$900 million term loan rating at 'B/RR3', on Burlington Coat Factory Warehouse Corp. BVS ENTERPRISES: Case Summary & 3 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: BVS Enterprises, LLC 8370 Greensboro Drive, Unit 202 McLean, VA 22102 Bankruptcy Case No.: 10-12023 Chapter 11 Petition Date: March 18, 2010 Court: United States Bankruptcy Court Eastern District of Virginia (Alexandria) Judge: Stephen S. Mitchell Debtor's Counsel: Richard J. Stahl, Esq. Stahl Zelloe, P.C. 11350 Random Hills, Road, Suite 700 Fairfax, VA 22030 Tel: (703) 691-4940 Fax: (703) 691-4942 Email: r.stahl@stahlzelloe.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A full-text copy of the Debtor's petition, including a list of its 3 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/vaeb10-12023.pdf The petition was signed by Brenda Silka, managing member of the Company. Debtor-affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- Brenda Silka 10-11811 3/11/10 Solarus, LLC 10-12024 3/18/10 aka Solarus Salon & Spa Assets: $0 to $50,000 Debts: $1 million to $10 million C BEAN: Files for Chapter 11, Shuts Down Operations --------------------------------------------------- According to Land Line Magazine, C. Bean filed for made a voluntary filing under Chapter and shut down trucking operations. The Company listed assets and debts of between $10 million and $50 million. C. Bean is a transport service company. The Company is ceasing its over-the-road operations, but would continue to operate its warehouse facility in Fort Smith, Arizona. In February 2010, Richard Bell of Bell Receivers LLC was named receiver after the Company defaulted on a $5.6 million loan with 1st Source Bank in South Bend, Indiana. CANTON COMMERCIAL: Case Summary & 6 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Canton Commercial Holdings LLC 2197 Canton Road, Suite 210 Marietta, GA 30066 Bankruptcy Case No.: 10-67891 Chapter 11 Petition Date: March 17, 2010 Court: United States Bankruptcy Court Northern District of Georgia (Atlanta) Debtor's Counsel: Michael D. Robl, Esq. Thomerson, Spears & Robl, LLC 104 Cambridge Avenue Decatur, GA 30030 Tel: (404) 373-5153 Email: mdrobl@tsrlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company has assets of $1,725,000, and total debts of $1,368,935. A full-text copy of the Debtor's petition, including a list of its 6 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/ganb10-67891.pdf The petition was signed by Edward L. Terry, manager of the Company. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Hampton Homes, Inc. 09-87296 10/15/09 CAPMARK FINANCIAL: Wants to Sell Investments in Mexican Markets --------------------------------------------------------------- Capmark Financial Group Inc. and its units seek the Court's authority to sell certain transferred interests to TESEFA, S.A. de C.V., a Sociedad Anonima de Capital Variable organized under the laws of Mexico, or to a successful bidder, free and clear of any and all liens, claims, encumbrances and interests. Capmark Financial Group Inc., Capmark Finance Inc. and non-debtor Capmark Mexico, S. de R.L. de C.V., a Sociedad de Responsabilidad Limitada de Capital Variable organized under the laws of Mexico, an affiliate of CFGI, have historically invested in Mexican non- performing loans. The Sellers' equity and debt interests in certain special purpose entities that own Mexican non-performing loans are the subject of the proposed sale. Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, relates that the non-performing loan assets held by the Sellers through the Transferred Interests are illiquid and risky by nature. Mr. Madron adds that the non- performing loans have uncertain cash flows and require significant oversight by the servicer of the assets. He further notes that the equity interests in the joint venture special purpose entities are subject to transfer restrictions which prohibit the transfer of the Seller's interest without the consent of the joint venture partners or otherwise grant the joint venture partners rights of first refusal to acquire the Sellers' interests. Given the Debtors' decision to withdraw from the Mexican market, the depreciating value of the Transferred Interests and the Debtors' unwillingness to devote the necessary resources to maintain value in the Debtor-Sellers' Transferred Interests, the Debtors do not believe the assets are viable component of their anticipated reorganization, Mr. Madron tells the Court. As a result, the Debtors desire to sell the Debtor-Sellers' Transferred Interests, and non-debtor Capmark Mexico desires to sell its portion of the Transferred Interests, to any party or parties offering the highest or best offer. Proposed Sale of the Transferred Assets The Sellers, Buyer, and Promecap S.A. de C.V., a Sociedad Anonima de Capital Variable organized under the laws of Mexico, Odisea Asset Management, LLC, a Delaware limited liability company, have entered into a purchase agreement, dated as of February 4, 2010, whereby TESEFA has agreed to purchase from the Sellers these assets, which comprise the Transferred Assets: (a) Capmark Activos I, S. de R.L. de C.V.; (i) the outstanding debt of Capmark Activos I issued in favor of CFI, (ii) the outstanding debt of Capmark Activos I issued in favor of Capmark Mexico, and (iii) 2 Social Parts owned by Capmark Mexico and CFI, together representing 100% of the outstanding capital stock of Capmark Activos I; (b) Capmark Activos III, S. de R.L. de C.V.: 1 Social Part owned by CFI and 1 Social Part owned by Capmark Mexico, together representing 100% of the outstanding capital stock of Capmark Activos III; (c) COEFACT, S.A. de C.V.: (i) 25,000 series "A" shares, (ii) 6,975,000 series "B" shares of COEFAT owned by Capmark Mexico, together representing 50% of the outstanding stock of COEFACT; and (iii) all rights and obligation of Capmark Mexico under the Shareholders' Agreement dated as of March 19, 2004, between Capmark Mexico and UBS AG; (d) LLM Inversiones I, S.A. de C.V.:(i) unsecured debentures of LLM Inversiones I issued by Lend Lease Equities, S.A. de C.V. and held by Capmark Mexico, and (ii) all rights and obligations of Capmark Mexico and CFI under the Assignment and Assumption of Rights and Payment Agreement, dated as of December 10, 2003, among Lend Lease Equities, S.A. de C.V., Capmark Mexico, and CFI; (e) LLM Inversiones II, S.A., de C.V.: (i) 50,000 series "A" shares of LLM Inversiones II and (ii) 924,675 series "B" shares owned by Capmark Mexico, together representing 50% of the outstanding capital stock of LLM Inversiones II, and (iii) all rights and obligations of Capmark Mexico under the Shareholders' Agreement dated as of December 15, 2002, among ML IBK Positions Inc., Lend Lease Equities, S.A. de C.V., and LL Inversiones II; (f) Recuperadora de Deuda Hipotecaria, S. de R.L. de C.V.: 1 Social Part of the RDH Pool owned by CFGI, representing 40% of the outstanding capital stock of the RDH Pool, and (ii) all rights and obligations of CFI under the Amended and Restated Shareholders Agreement dated as of January 18, 2006, among CFI, CIGPF I Corp., and UBS AG; (g) VPN Plus, S. de R.L. de C.V.: (i) 1 Social Part of VPN Plus I owned by CFGI, representing 50% of the outstanding capital stock of VPN Plus I, and (ii) all rights and obligations of CFI under the Shareholders Agreement dated as of September 8, 2005, among CFI and CIGPF I Corp.; (h) VPN Plus II, S. de R.L. de C.V.: (i) 1 Social Part of VPN Plus II owned by CFGI, representing 50% of the outstanding capital stock of VPN Plus II; and (ii) all rights and obligations of CFI under the Shareholders Agreement dated as of September 29, 2005, among CFI and CIGPF I Corp.; (i) The Zendere Note: (i) obligations and rights related to the Stock Purchase Agreement entered into by and among Zendere I, Corporativo Zendere I, CFGI, Capmark Mexico, and the Principals named in the Stock Purchase Agreement dated as of November 15, 2007, and (ii) the obligations and rights related to the Stock Pledge Agreement entered into by and among Zendere I and Corporativo Zendere I as Pledgors and Capmark as Pledgee, dated as of December 7, 2007; and (j) all contracts relating to the Transferred Interests. The principal terms of the Sale Agreement are: Purchase Price: $17,158,555, subject to certain upward or downward adjustments. Approximately $15 million of the proposed Purchase Price will be allocated to CFGI and CFI. Break-Up Fee: Equal to the sum of: (a) the reasonable out-of-pocket expenses of Buyer in connection with the negotiation, execution and performance of the letter of intent and the Sale Agreement, not to exceed $100,000 in the aggregate; and (b) 2% of the aggregate Base Purchase Price allocated to the Transferred Interests sold to that Successful Bidder or Successful Bidders. In no event will the Break-Up Fee be payable to the Buyer if the closing of the Alternative Transaction does not occur within six months of the date of the execution of the Sale Agreement. A full-text copy of the Sale Agreement is available for free at: http://bankrupt.com/misc/Capmark_RevSaleAgmtTESEFA.pdf Bidding Procedures and the Auction Pursuant to court-approved bidding procedures, the Debtors will conduct a competitive bidding process for the sale of the Transferred Interests pursuant to the Sale Agreement, subject to higher or better offers. Any person interested person or entity participating in the Auction must submit a qualifying bid on or before March 22, 2010, at 2:00 p.m. To participate in the bidding process and be deemed a Qualifying Bidder, each potential bidder must submit a Qualifying Bid by the Bid Deadline. If an Auction is conducted where the Debtors do not permit separate bids for the individual Transferred Interests and one Qualifying Bidder submits the highest or best Qualifying Bid for all of the Transferred Interests, the Qualifying Bidder with the next highest or otherwise best Qualifying Bid for all of the Transferred Interests will be required to serve as back-up bidder. The Court will hold a Sale Hearing on April 5, 2010. A full-text copy of the Court's Bidding Procedures Order is available for free at: http://bankrupt.com/misc/Capmark_OrdAuctionTransferredInt.pdf Contracts Assumption and Assignment To facilitate the Sale and the assumption and assignment of the Assigned Contracts, the Debtors notified parties-in-interest on February 26, 2010, that they intend to assume and assign certain executory contracts in connection with the proposed sale. The Debtors did not provide a list of the contracts. Objection Deadline The Debtors request that objections, if any, to the Sale or an Assumption or Cure Objection be filed on or before March 25, 2010. Debtors File Proposed Supplemental Order The Debtors relate in a certification of counsel that subsequent to the entry of the Bidding Procedures Order, they have completed all of the service requirements except that the known nondebtor parties to the Assigned Contracts were served with the complete Notice of Assumption and Assignment within six, rather than five, business days following the entry of the Bidding Procedures Order. Consequently, the Debtors prepared a form of supplemental order which extends their time to complete service of Notice of Assumption and Assignment upon all known nondebtor parties through March 1, 2010. Judge Sontchi signed the Supplemental Order on March 11, 2010. About Capmark Financial Based in Horsham, Pennsylvania, Capmark Financial Group Inc. -- http://www.capmark.com/-- is a diversified company that provides a broad range of financial services to investors in commercial real estate-related assets. Capmark has three core businesses: lending and mortgage banking, investments and funds management, and servicing. Capmark operates in North America, Europe and Asia. Capmark has 1,000 employees located in 37 offices worldwide. On October 25, 2009, Capmark Financial Group Inc. and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 (Bankr. D. Del. Case No. 09-13684) Capmark's financial advisors are Lazard Freres & Co. LLC and Loughlin Meghji + Company. Capmark's bankruptcy counsel is Dewey & LeBoeuf LLP. Richards, Layton & Finger, P.A. serves as local counsel. Beekman Advisors, Inc., is serving as strategic advisor. KPMG LLP is tax and accounting advisor. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. Capmark has total assets of US$20 billion against total debts of US$21 billion as of June 30, 2009. Bankruptcy Creditors' Service, Inc., publishes Capmark Financial Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Capmark Financial Group Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000) CAPMARK FINANCIAL: Wants to Assign ATM License to Berkadia ---------------------------------------------------------- Capmark Financial Group Inc. and its units seek the Court's authority to assume and assign an automated teller machine license agreement to Berkadia Commercial Mortgage LLC. The ATM License Agreement, dated as of September 26, 2001, was entered between Debtor Capmark Finance Inc. and Wachovia Bank, NA, as successor to First Union Bank. The Debtors relate that pursuant to the ATM License Agreement, they are obligated to pay Wachovia approximately $600 per month to have the ATM remain at 118 Welsh Road, in Horsham, Pennsylvania, as a convenience to the employees who work at that location, which amounts, after the sale of the commercial mortgage servicing and mortgage banking business assets have been, or will be, reimbursed by Berkadia to the Debtors. The Debtors relate that no amounts are required to cure any default under Section 365 of the Bankruptcy Code, and that Berkadia has provided adequate assurance of future performance under the ATM License Agreement. About Capmark Financial Based in Horsham, Pennsylvania, Capmark Financial Group Inc. -- http://www.capmark.com/-- is a diversified company that provides a broad range of financial services to investors in commercial real estate-related assets. Capmark has three core businesses: lending and mortgage banking, investments and funds management, and servicing. Capmark operates in North America, Europe and Asia. Capmark has 1,000 employees located in 37 offices worldwide. On October 25, 2009, Capmark Financial Group Inc. and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 (Bankr. D. Del. Case No. 09-13684) Capmark's financial advisors are Lazard Freres & Co. LLC and Loughlin Meghji + Company. Capmark's bankruptcy counsel is Dewey & LeBoeuf LLP. Richards, Layton & Finger, P.A. serves as local counsel. Beekman Advisors, Inc., is serving as strategic advisor. KPMG LLP is tax and accounting advisor. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. Capmark has total assets of US$20 billion against total debts of US$21 billion as of June 30, 2009. Bankruptcy Creditors' Service, Inc., publishes Capmark Financial Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Capmark Financial Group Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000) CAPMARK FINANCIAL: Proposes Johnson as Salary Consultant -------------------------------------------------------- Capmark Financial Group Inc. and its units seek the Court's authority to employ Johnson Associates, Inc. as their compensation consultant, nunc pro tunc to February 17, 2010. The Debtors maintain that Johnson's consulting practice has a long-standing reputation for providing independent advice to clients with a strong focus on candor and sound judgments. Moreover, the Debtors note, Johnson is being retained to analyze their proposed Performance Incentive Plan compensation payments and arrangements, as well as base salaries, and assist and advise them in developing a compensation program that aligns the interests of the Debtors, their key employees, and their creditors. Johnson is also being retained to undertake a comparative analysis of the Debtors' discretionary Bonus Plan for non-insider employees against similar plans in the financial services industry. The Debtors propose that Johnson perform these tasks pursuant to two engagement letters: A. Bonus Plan Engagement Letter (a) Review the Debtors' proposed Performance Incentive Plan and existing Bonus Plan; (b) Evaluate incentive design features and metrics; (c) Analyze potential plan magnitudes; (d) Arrive at a workable program that both motivates and incentivizes targeted outcomes; and (e) Provide testimony relating to the proposed Performance Incentive Plan. B. Base Salary Engagement Letter: i. Review proposed salary levels; ii. Evaluate the positions/functions for comparability; iii. Provide estimated market details based on available competitive information; and iv. Provide sensible and competitive base salaries that help the Debtors' business lines operate on a more stable and effective basis. As described in the Bonus Plan Engagement Letter, the Debtors expect to pay Johnson these estimated costs: Function Range -------- --------------- Assessment of Potential Directions $16,000 - $19,000 Testimony and Preparation $11,000 - $13,000 As described in the Base Salary Engagement Letter, the Debtors expect to pay Johnson these estimated costs: Function Range -------- --------------- Assessment of Potential Directions $9,000-$10,500 Jeff Pratas Visithpanich, a principal of Johnson Associates, Inc., assures the Court that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code, as modified by Section 1107(b) of the Bankruptcy Code and as required under Section 327(a) of the Bankruptcy Code. About Capmark Financial Based in Horsham, Pennsylvania, Capmark Financial Group Inc. -- http://www.capmark.com/-- is a diversified company that provides a broad range of financial services to investors in commercial real estate-related assets. Capmark has three core businesses: lending and mortgage banking, investments and funds management, and servicing. Capmark operates in North America, Europe and Asia. Capmark has 1,000 employees located in 37 offices worldwide. On October 25, 2009, Capmark Financial Group Inc. and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 (Bankr. D. Del. Case No. 09-13684) Capmark's financial advisors are Lazard Freres & Co. LLC and Loughlin Meghji + Company. Capmark's bankruptcy counsel is Dewey & LeBoeuf LLP. Richards, Layton & Finger, P.A. serves as local counsel. Beekman Advisors, Inc., is serving as strategic advisor. KPMG LLP is tax and accounting advisor. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. Capmark has total assets of US$20 billion against total debts of US$21 billion as of June 30, 2009. Bankruptcy Creditors' Service, Inc., publishes Capmark Financial Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Capmark Financial Group Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000) CAPMARK FINANCIAL: Gets OK for Messana as Special Del. Counsel -------------------------------------------------------------- Capmark Financial Group Inc. and its units sought and obtained the Court's authority to employ Messana Rosner & Stern LLP as their special Delaware counsel, nunc pro tunc to December 30, 2009. The Debtors said they have selected Messana Rosner because the firm's attorneys have played significant roles representing various constituencies in many large and complex cases. On January 5, 2010, Capmark Financial Group, Inc., Capmark Capital Inc., Capmark Finance Inc., Commercial Equity Investments, Inc., Mortgage Investments, LLC, Net Lease Acquisition LLC, and SJM Cap, LLC filed an adversary complaint for declaratory and injunctive relief to confirm applicability of the automatic stay or alternatively, to impose Section 105 of the Bankruptcy Code. The Adversary Complaint was prepared by Dewey & LeBoeuf LLP and then reviewed and filed by Messana Rosner. Prior to filing the Adversary Complaint, Richards, Layton & Finger, P.A. ran a conflicts check and determined that it could not be adverse to one or more of the defendants. To avoid any conflict of interest or even the appearance of any impropriety, the Debtors sought to retain Messana Rosner as special Delaware counsel solely with respect to the Adversary Complaint and any appeals taken in connection therewith. The Debtors tell the Court that they seek to retain MRS as their special Delaware counsel because Richards Layton cannot be adverse to one or more of the defendants identified in the Adversary Complaint. As special Delaware counsel, Messana Rosner will: (a) represent the interests of the Debtors' estates as special Delaware counsel in the Adversary Complaint; (b) prepare on behalf of the Debtors all necessary motions, applications, orders, reports and other papers in connection with the administration of the Adversary Complaint; and (c) perform all other necessary legal services in connection with the prosecution of the Adversary Complaint as may be requested by the Debtors or Dewey & LeBoeuf. The Debtors will pay Messana Rosner based on the firm's current hourly rates: Name Title Hourly Rate ---- ----- ----------- Frederick B. Rosner Partner $500 Scott J. Leonhardt Associate $350 Brian L. Arban Associate $300 Bette O'Byrne Paralegal $225 The Debtors will also reimburse Messana Rosner for all expenses incurred including photocopying services, travel expenses, filing fees, postage and others. Frederick B. Rosner, Esq., at Messana Rosner & Stern LLP, in Wilmington, Delaware, assures the Court that his firm is a "disinterested person" as that phrase is defined in Section 101(14) of the Bankruptcy Code. Court Amends Order The Debtors tell the Court that in an informal comment, the Office of the U.S. Trustee asserted that the retention of Messana Rosner should be pursuant to Section 327(a) of the Bankruptcy Code, not 327(e). To address the U.S. Trustee's comment, the Debtors delivered to the Court a form of an amended order authorizing Messana Rosner's retention under Section 327(a). Accordingly, on February 23, 2010, Judge Sontchi amended his order to reflect the changes requested by the Debtors. About Capmark Financial Based in Horsham, Pennsylvania, Capmark Financial Group Inc. -- http://www.capmark.com/-- is a diversified company that provides a broad range of financial services to investors in commercial real estate-related assets. Capmark has three core businesses: lending and mortgage banking, investments and funds management, and servicing. Capmark operates in North America, Europe and Asia. Capmark has 1,000 employees located in 37 offices worldwide. On October 25, 2009, Capmark Financial Group Inc. and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 (Bankr. D. Del. Case No. 09-13684) Capmark's financial advisors are Lazard Freres & Co. LLC and Loughlin Meghji + Company. Capmark's bankruptcy counsel is Dewey & LeBoeuf LLP. Richards, Layton & Finger, P.A. serves as local counsel. Beekman Advisors, Inc., is serving as strategic advisor. KPMG LLP is tax and accounting advisor. Epiq Bankruptcy Solutions, LLC, is the claims and notice agent. Capmark has total assets of US$20 billion against total debts of US$21 billion as of June 30, 2009. Bankruptcy Creditors' Service, Inc., publishes Capmark Financial Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Capmark Financial Group Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000) CARL HENRY DAUGHERTY: Case Summary & 8 Largest Unsecured Creditors ------------------------------------------------------------------ Joint Debtors: Carl Henry Daugherty, Jr. Sharon Layman Daugherty 304 Sterling Court Sevierville, TN 37876 Bankruptcy Case No.: 10-31321 Chapter 11 Petition Date: March 19, 2010 Court: United States Bankruptcy Court Eastern District of Tennessee (Knoxville) Judge: Richard Stair Jr. Debtors' Counsel: Michael H. Fitzpatrick, Esq. Jenkins & Jenkins Attorneys, PLLC 2121 First Tennessee Plaza 800 S. Gay St. Knoxville, TN 37929 Tel: (865) 524-1873 Email: tn20@ecfcbis.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company has assets of $4,126,747 and total debts of $2,270,739. A list of the Company's 8 largest unsecured creditors is available for free at: http://bankrupt.com/misc/tneb10-31321.pdf The petition was signed by the Joint Debtors. CBD FRANCHISING: Case Summary & 21 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: CBD Franchising, Inc. dba Closet By Design Franchising 3860 Capitol Avenue Whittier, CA 90601 Bankruptcy Case No.: 10-19973 Chapter 11 Petition Date: March 18, 2010 Court: United States Bankruptcy Court Central District of California (Los Angeles) Judge: Richard M. Neiter Debtor's Counsel: Christopher S. Reeder, Esq. Reeder Lu & Green LLP 2121 Ave of the Stars, Ste 950 Los Angeles, CA 90067 Tel: (310) 270-9300 Fax: (310) 270-9301 Email: creeder@reederlugreen.com Julian I. Gurule, Esq. 10100 Santa Monica Blvd, Ste 1450 Los Angeles, CA 90067 Tel: (310) 552-3100 Fax: (310) 552-3101 Email: jgurule@pwkllp.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A full-text copy of the Debtor's petition, including a list of its 21 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/cacb10-19973.pdf The petition was signed by Gerard A. Thompson, senior vice president & CFO of the Company. CELL THERAPEUTICS: Seeks Shareholder OK to Issue More Shares ------------------------------------------------------------ Cell Therapeutics, Inc., will hold a Special Meeting of Shareholders on April 9, 2010, to seek approval of its proposal to increase its capital stock to obtain funding for its operations. In his letter to shareholders, Louis A. Bianco, Executive Vice President, Finance & Administration of Cell Therapeutics, Inc., said, "Most of our currently authorized common stock has been issued or is reserved for issuance. The proposal to increase our authorized capital stock would provide us with resources that are critical to our ability to continue to fund our operations as we move forward toward potential product milestones and would be in the best interest of our shareholders." Mr. Bianco said the meeting is "urgent." According to Mr. Bianco, "CTI has the potential to have our product, pixantrone, targeting aggressive non-Hodgkin's lymphoma approved in 2010 and will meet with the Food and Drugs Administration's (the "FDA") Oncologic Drugs Advisory Committee ("ODAC") to review the New Drug Application ("NDA") for pixantrone on March 22, 2010. The FDA is then expected to make a final decision on approval by April 23, 2010. This drug is aimed at helping cancer patients who have limited medical options. Approval of pixantrone would also be a transformative event for us and it is critical as we move toward potential commercialization of pixantrone that we have the ability to access the capital markets to fund our operations to bring this drug to the patient community." About Cell Therapeutics Headquartered in Seattle, Cell Therapeutics, Inc. (NASDAQ and MTA: CTIC) -- http://www.CellTherapeutics.com/-- is a biopharmaceutical company that develops an integrated portfolio of oncology products aimed at making cancer more treatable. Subsequent to the closure of its Bresso, Italy operations in September 2009, CTI's operations are conducted solely in the United States. The Company reported $69.59 million in total assets and $87.73 million in total liabilities, resulting in $18.76 million in stockholders' deficit at Dec. 31, 2009. Going Concern Doubt San Francisco-based Stonefield Josephson, Inc., has included an explanatory paragraph in their report on Cell Therapeutics, Inc.'s December 31, 2009, 2008 and 2007 consolidated financial statements regarding their substantial doubt as to the Company's ability to continue as a going concern. The independent auditors reported that the Company has sustained loss from operations over the audit periods, incurred an accumulated deficit, and has substantial monetary liabilities in excess of monetary assets as of December 31, 2009. Bankruptcy Warning In its Form 10-Q report for the period ended September 30, 2009, filed with the Securities and Exchange Commission, the Company warned it does not expect it will have sufficient cash to fund planned operations through the second quarter of 2010, which raises substantial doubt about its ability to continue as a going concern. The Company said if it fails to obtain capital when required, the Company said it may be required to delay, scale back, or eliminate some or all of its research and development programs and may be forced to cease operations, liquidate its assets and possibly seek bankruptcy protection. CENTRAL PACIFIC: Fitch Downgrades Issuer Default Rating at 'CC' --------------------------------------------------------------- Fitch Ratings has downgraded the long-term Issuer Default Rating of Central Pacific Financial Corp. and its bank subsidiary, Central Pacific Bank to 'CC' from 'CCC'. The downgrade of CPF's ratings reflects that the company remains under serious credit stress and has disclosed it will not meet the enhanced capital requirements as per its existing regulatory agreements. Although the company has been actively attempting to raise capital, these efforts have thus far not been successful. Failure to meet these regulatory requirements exposes the company to additional regulatory enforcement actions, including a potential regulatory takeover of its bank subsidiary, Central Pacific Bank. The inability to meet current and future regulatory requirements, as well as the prospect of regulatory seizure, has caused its auditor to raise questions as to the company's ability to continue as a going concern. Central Pacific Bank is operating under a Consent Order with the FDIC and its state regulator, which requires among other things, for the bank to increase its leverage and total risk-based capital ratios to 10% and 12%, respectively, by March 31, 2010. Additionally, CPF is operating under a MOU with the Federal Reserve Board of San Francisco, which also requires the company to maintain enhanced capital ratios, specifically maintaining a 9% leverage ratio. It is anticipated that CPF will also consent to a formal enforcement action with the FRB in the near future. Fitch estimates, without factoring in expected future losses, that CPF would need to raise over $130 million of new capital given its present asset size to meet enhanced capital requirements. The company has implemented a recovery plan, which calls for a downsizing of the bank and to boost capital ratios, as previous initiatives to improve capital ratios were insufficient to meet regulatory requirements. While a successful implementation of the company's recovery plan could have positive rating implications, Fitch believes there is a limited probability that the recovery plan will be successful in meeting regulatory requirements. Fitch assigns recovery ratings to individual security issues where the IDR of the issuer is rated in the single-B or below category. As such, Fitch has assigned a recovery rating of 'RR3' to the uninsured long-term deposits of Central Pacific Bank, which implies a recovery between 51% - 70%, on these instruments in the event of failure or default by the issuer, and a 'RR6' to the preferred and trust preferred securities of CPF, which implies recovery between 0%-10%. CPF is a $4.9 billion banking company headquartered in Honolulu, HI. CPF provides a full range of traditional commercial consumer and banking services. Through its bank subsidiary, Central Pacific Bank, the company operates 37 branches throughout Hawaii. Fitch has taken these rating actions: Central Pacific Financial Corp. -- Long-term IDR downgraded to 'CC' from 'CCC'; -- Short-term IDR affirmed at 'C'; -- Individual affirmed at 'E'; -- Preferred Stock affirmed at 'C/RR6'; -- Support affirmed at '5'; -- Support Floor affirmed at 'No Floor'. Central Pacific Bank -- Long-term IDR downgraded to 'CC from 'CCC'; -- Short-term IDR affirmed at 'C'; -- Long-term Deposit downgraded to 'CCC/RR3' from 'B-/RR3'; -- Short-term Deposit downgraded to 'C' from 'B'; -- Individual affirmed at 'E'; -- Support affirmed at '5'; -- Support Floor affirmed at 'No Floor'. CPB Capital Trust I, II, & IV CPB Statutory Trust III & V -- Trust Preferred Securities affirmed at 'C/RR6'. CENTURY SECURITY: Closed; Bank of Upson Assumes All Deposits ------------------------------------------------------------ Century Security Bank, Duluth, Georgia, was closed March 19 by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank of Upson, Thomaston, Georgia, to assume all of the deposits of Century Security Bank. The two branches of Century Security Bank reopened Saturday during normal business hours as branches of Bank of Upson. Depositors of Century Security Bank will automatically become depositors of Bank of Upson. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from Bank of Upson that it has completed systems changes to allow other Bank of Upson branches to process their accounts as well. As of December 31, 2009, Century Security Bank had around $96.5 million in total assets and $94.0 million in total deposits. Bank of Upson did not pay the FDIC a premium for the deposits of Century Security Bank. In addition to assuming all of the deposits of the failed bank, Bank of Upson agreed to purchase essentially all of the assets. The FDIC and Bank of Upson entered into a loss-share transaction on $81.5 million of Century Security Bank's assets. Bank of Upson will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html Customers who have questions about the transaction can call the FDIC toll-free at 1-800-355-0650. Interested parties also can visit the FDIC's Web site at: http://www.fdic.gov/bank/individual/failed/cent-security.html The FDIC estimates that the cost to the Deposit Insurance Fund will be $29.9 million. Bank of Upson's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to all alternatives. Century Security Bank is the 32nd FDIC-insured institution to fail in the nation this year, and the third in Georgia. The last FDIC-insured institution closed in the state was Community Bank and Trust, Cornelia, on January 29, 2010. CHAMPION ENTERPRISES: Investor Group Injects $50MM New Capital ------------------------------------------------------------- Champion Enterprises Holdings, LLC, has completed the acquisition of the domestic and international operations of Champion Enterprises, Inc., out of bankruptcy. In connection with the transaction, an investor group consisting of affiliates of Centerbridge Partners, L.P., MAK Capital Fund LP and Sankaty Advisors, LLC, invested $50 million in new capital to support the operations and growth initiatives of the newly created company. The new company emerges recapitalized and with a substantially deleveraged balance sheet consisting of $40 million of term debt along with the assumption of certain operating liabilities. "The completion of this transaction is a significant step forward for Champion and represents very positive news for our customers, employees and other business partners," said William C. Griffiths, President and Chief Executive Officer of Champion Enterprises Holdings, LLC. "The infusion of new capital will allow us to fund growth initiatives as the housing markets begin to recover, and is particularly well timed in light of the upcoming spring selling season." Michael Bevacqua, Managing Director of Sankaty Advisors, LLC, stated: "The investor group is excited about the prospects for the new Champion and we look forward to working with the company as it executes its immediate priorities for the business -- providing much needed financing and marketing support for our dealer base and improving upon our already strong market position in the manufactured housing industry." David Trucano, Managing Director of Centerbridge Partners, L.P., added: "We would like to thank the management team and employees of Champion for their efforts throughout the sale process. With a recapitalized balance sheet and a highly regarded management team to lead our efforts, we believe that the new Champion is now better positioned than ever to succeed by meeting the needs of its diversified customer base." About Champion Enterprises Troy, Michigan-based Champion Enterprises, Inc., and its subsidiaries are international manufacturers of factory-built homes and steel-framed modular buildings, with operations in the United States, Canada and the United Kingdom. Buildings constructed by Champion and its subsidiaries consist of both single and multi-module units designed for either commercial or residential purposes. Champion products range from single-module HUD-Code homes to sophisticated commercial structures such as hotels. The Company filed for Chapter 11 on November 15, 2009 (Bankr. D. Del. Case No. 09-14019). The Company's affiliates also filed separate bankruptcy petitions. James E. O'Neill, Esq., Laura Davis Jones, Esq., Mark M. Billion, Esq., Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, assist Champion in its restructuring effort. The Company listed $576,527,000 in assets and $521,337,000 in liabilities as of October 3, 2009. CHIQUITA BRANDS: Moody's Raises Corporate Family Rating to 'B2' --------------------------------------------------------------- Moody's Investors Service has upgraded the corporate family rating of Chiquita Brands International, Inc., to B2 from B3. At the same time, Moody's upgraded the ratings on Chiquita's senior unsecured notes to Caa1 from Caa2 and the ratings on the senior secured credit facility of Chiquita Brands LLC, a wholly owned operating subsidiary of Chiquita, to Ba2 from Ba3. The ratings outlook is stable. The rating upgrades reflect Chiquita's improved profitability, reduced financial leverage and solid liquidity profile. Chiquita's focus on sustainable profitability enhancements coupled with the progress in reducing its exposure to unprofitable contracts, primarily related to foodservice customers, has driven a marked turnaround in its U.S. salad business. The ongoing improvement is expected to support cash flow generation and debt reduction initiatives while decreasing the company's reliance on its core banana business. The B2 rating reflects Chiquita's modest financial leverage and incorporates the scale, profitability and brand equity of its banana business (close to 60% of consolidated revenues). However, the volatility and low margins inherent in its international banana business, given its commodity-like attributes and a highly competitive operating environment, weigh on ratings. Further, the rating acknowledges the sizeable risks associated with a potential unfavorable outcome in any of the pending lawsuits, including Colombia related matters, and ongoing regulatory investigations. Despite ongoing litigation risks and uncertainties, Chiquita's solid credit metrics (notably expected improvement in cash generation and the maintenance of higher unrestricted cash balances) support the stable ratings outlook. Additionally, Moody's anticipates the company's liquidity profile to remain good throughout the near term benefiting from an undrawn $150 million revolver ($22 million of letters of credit outstanding) and ample headroom under financial covenants. A material settlement to any litigation issues that stresses existing covenant headroom, requires meaningful revolver borrowings and/or consumes cash balances could have negative rating implications. Given the magnitude of external factors inherently affecting the business (e.g. weather, litigation, regulation, and input costs), Moody's expects the company to maintain consistently strong intrinsic liquidity and conservative credit metrics. These ratings were upgraded: Chiquita Brands International, Inc.: -- Corporate family rating to B2 from B3; -- Probability of default rating to B2 from B3; -- $167 million 7.5% senior unsecured notes due 2014 to Caa1 (LGD5, 82%) from Caa2 (LGD5, 82%); and -- $179 million 8.875% senior unsecured notes due 2105 to Caa1 (LGD5, 82%) from Caa2 (LGD5, 82%). Chiquita Brands, LLC: -- $150 million senior secured revolving credit agreement due 2014 to Ba2 (LGD2, 12%) from Ba3 (LGD2, 12%); and -- $183 million senior secured term loan due 2014 to Ba2 (LGD2, 12%) from Ba3 (LGD2, 12%). The last rating action for Chiquita was the change in the rating outlook to stable from negative on March 30, 2009. Chiquita, based in Cincinnati, Ohio, is a leading international marketer and distributor of bananas and other fresh produce in over 80 countries and a producer of packaged salads under the fresh direct brand name primarily in the United States. Total sales for 2009 were $3.5 billion. CHRYSLER LLC: New Chrysler Recalls 300 Workers in Indiana --------------------------------------------------------- More than 300 laid-off employees were called to return to their jobs at Chrysler's plants in Kokomo, Indiana, according to a report by Kokomo Perspective. Rich Boruff, president of United Auto Workers Local 685, said about 250 non-skilled workers and 53 skilled trade workers were being recalled to jobs. He said the recalls are connected to increased demand for the six-speed transmission made at the plants. About 140 workers are scheduled to return on March 22 while 175 returned to work at the Kokomo plants on Monday, according to a March 10 report by Indianapolis Star. Mr. Boruff estimated that less than 200 unskilled workers remain without jobs after the recall. About Chrysler Group LLC Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep(R), Dodge, Ram Truck, Mopar(R) and Global Electric Motorcars (GEM) brand vehicles and products. Headquartered in Auburn Hills, Michigan, Chrysler Group LLC's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Ram Truck. Fiat will contribute world-class technology, platforms and powertrains for small- and medium-sized cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles. About Chrysler LLC Chrysler LLC and 24 affiliates on April 30 sought Chapter 11 protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case No. 09-50002). Chrysler hired Jones Day, as lead counsel; Togut Segal & Segal LLP, as conflicts counsel; Capstone Advisory Group LLC, and Greenhill & Co. LLC, for financial advisory services; and Epiq Bankruptcy Solutions LLC, as its claims agent. Chrysler has changed its corporate name to Old CarCo following its sale to a Fiat-owned company. As of December 31, 2008, Chrysler had $39,336,000,000 in assets and $55,233,000,000 in debts. Chrysler had $1.9 billion in cash at that time. In connection with the bankruptcy filing, Chrysler reached an agreement with Fiat SpA, the U.S. and Canadian governments and other key constituents regarding a transaction under Section 363 of the Bankruptcy Code that would effect an alliance between Chrysler and Italian automobile manufacturer Fiat. Under the terms approved by the Bankruptcy Court, the company formerly known as Chrysler LLC on June 10, 2009, formally sold substantially all of its assets, without certain debts and liabilities, to a new company that will operate as Chrysler Group LLC. Fiat has a 20 percent equity interest in Chrysler Group. Bankruptcy Creditors' Service, Inc., publishes Chrysler Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Chrysler LLC and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) CHRYSLER LLC: Canadian Dealers Keen on U.S. Style Incentives ------------------------------------------------------------ Canadian dealers of Chrysler vehicles are keen about using a cash- reward program being offered to their counterparts in the United States for improving customer service and dealerships, Windsor Star reports. "We encourage and welcome to try it especially if there's a positive spinoff," Leo Racicot Jr., general manager of Amherstburg-based Racicot Chrysler told Windsor Star. He said dealers could use an incentive that offers cash and the opportunity to improve their business. "I think that anything that allows us to improve on our dealership is a great idea. Sometimes we think that we are okay with the way things are until our eyes get opened by someone or some program like this," Windsor Star quoted him as saying. Chrysler Group LLC began offering the cash-reward program for its U.S.-based dealers late last year, and has not extended it yet to the Canadian dealers. Under the program, dealers who sell 1,800 vehicles annually can earn up to $200,000 per quarter if they score 600 points on a 1,000-point scale. Meanwhile, dealers who sell fewer than 50 a year can earn $4,500 per quarter by hitting 600 points. David Kelleher, secretary of the Chrysler National Dealer Council in the U.S. predicted the program will also be offered to the Canadian dealers. "They have a very strong network. Often Canadian dealers are the only ones who have a decent year," Mr. Kelleher told Windsor Star. Tony Faria, business professor at the University of Windsor, said the cash program would have a significant impact on a dealership's net income. "A program of that nature can work. If there are incentives of some sort, presumably you can get dealerships moving in their direction," Windsor Star quoted Mr. Faria as saying. He added there is no reason why it would not also work for dealerships in Canada. "They're not appreciably different. They're handling the same vehicles and going after consumers in much the same fashion," Mr. Faria pointed out. Mary Gauthier, Chrysler Canada spokeswoman, said, however, that the auto maker does not have anything similar to announce, Windsor Star reported. "Our situation, our market in Canada is different. We're always looking to enhance the dealership experience and right now we have great incentives for consumers including some great financing offers," Windsor Star quoted her as saying. About Chrysler Group LLC Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep(R), Dodge, Ram Truck, Mopar(R) and Global Electric Motorcars (GEM) brand vehicles and products. Headquartered in Auburn Hills, Michigan, Chrysler Group LLC's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Ram Truck. Fiat will contribute world-class technology, platforms and powertrains for small- and medium-sized cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles. About Chrysler LLC Chrysler LLC and 24 affiliates on April 30 sought Chapter 11 protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case No. 09-50002). Chrysler hired Jones Day, as lead counsel; Togut Segal & Segal LLP, as conflicts counsel; Capstone Advisory Group LLC, and Greenhill & Co. LLC, for financial advisory services; and Epiq Bankruptcy Solutions LLC, as its claims agent. Chrysler has changed its corporate name to Old CarCo following its sale to a Fiat-owned company. As of December 31, 2008, Chrysler had $39,336,000,000 in assets and $55,233,000,000 in debts. Chrysler had $1.9 billion in cash at that time. In connection with the bankruptcy filing, Chrysler reached an agreement with Fiat SpA, the U.S. and Canadian governments and other key constituents regarding a transaction under Section 363 of the Bankruptcy Code that would effect an alliance between Chrysler and Italian automobile manufacturer Fiat. Under the terms approved by the Bankruptcy Court, the company formerly known as Chrysler LLC on June 10, 2009, formally sold substantially all of its assets, without certain debts and liabilities, to a new company that will operate as Chrysler Group LLC. Fiat has a 20 percent equity interest in Chrysler Group. Bankruptcy Creditors' Service, Inc., publishes Chrysler Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Chrysler LLC and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) CITADEL BROADCASTING: Bank Debt Trades at 14% Off ------------------------------------------------- Participations in a syndicated loan under which Citadel Broadcasting Corporation is a borrower traded in the secondary market at 86.30 cents-on-the-dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 2.91 percentage points from the previous week, The Journal relates. Citadel pays 175 basis points above LIBOR to borrow under the loan facility, which matures on June 1, 2014. Moody's has withdrawn its rating, while Standard & Poor's has assigned a default rating, on the bank debt. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Citadel Broadcasting Corporation (OTC BB: CTDB) -- http://www.citadelbroadcasting.com/-- is the third largest radio group in the United States, with a national footprint reaching more than 50 markets. Citadel is comprised of 166 FM stations and 58 AM stations in the nation's leading markets, in addition to Citadel Media, which is one of the three largest radio networks in the United States. Citadel Broadcasting filed for Chapter 11 with 50 affiliates on Dec. 20, 2009, in Manhattan (Bankr. S.D.N.Y. Case No. 09-17422). The Company listed assets of $1.4 billion and debt of $2.5 billion in its Chapter 11 filing. Kirkland & Ellis LLP is serving as legal counsel and Lazard Freres & Co. LLC. As financial advisor for the restructuring. Kurtzman Carson Consultants is serving as claims and notice agent. Bankruptcy Creditors' Service, Inc., publishes Citadel Broadcasting Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Citadel Broadcasting Corp. and other affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) CLOSET WORLD: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Closet World, Inc. 3860 Capitol Avenue Whittier, CA 90601 Bankruptcy Case No.: 10-19972 Chapter 11 Petition Date: March 18, 2010 Court: United States Bankruptcy Court Central District of California (Los Angeles) Judge: Richard M. Neiter Debtor's Counsel: Christopher S. Reeder, Esq. Reeder Lu & Green LLP 2121 Ave of the Stars, Ste 950 Los Angeles, CA 90067 Tel: (310) 270-9300 Fax: (310) 270-9301 Email: creeder@reederlugreen.com Julian I. Gurule, Esq. 10100 Santa Monica Blvd, Ste 1450 Los Angeles, CA 90067 Tel: (310) 552-3100 Fax: (310) 552-3101 Email: jgurule@pwkllp.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A full-text copy of the Debtor's petition, including a list of its 20 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/cacb10-19972.pdf The petition was signed by Gerard A. Thompson, senior vice president & CFO of the Company. COFFEYVILLE RESOURCES: S&P Assigns 'BB-' Ratings on Senior Notes ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned 'BB-' ratings to Coffeyville Resources LLC's new senior secured term notes based on the preliminary terms and conditions of the offering memorandum. At the same time S&P assigned a '1' recovery rating to the senior secured facilities, indicating S&P's expectation for a full recovery of principal in a payment default. S&P affirmed all the ratings, including the 'B' corporate credit rating on the Kansas- based petroleum refiner. The outlook is stable. The ratings on Coffeyville are based on S&P's 'weak' business profile and 'aggressive' financial profile assessment. S&P's analysis follows the announced plans to issue about $250 million in first lien debt and $250 million in second lien debt to refinance its existing first lien term loan, and the amendment of Coffeyville's credit agreement including a relaxation of leverage and interest financial covenants. As of Dec. 31, 2009, there was $479.5 million of debt outstanding under the company's secured term loan due 2013 and $6.7 million in other long-term liabilities. As a result of subsequent discretionary amortization, the term loan balance fell to $453.3 million as of Feb. 26, 2010. The company also had $114 million available under its senior secured revolving credit facility. COLEMAN CABLE: Moody's Affirms Corporate Family Rating at 'B2' -------------------------------------------------------------- Moody's Investors Service affirmed Coleman Cable, Inc.'s B2 corporate family rating, the B2 probability-of-default rating, and the B3 rating on the 9.0% senior notes due 2018. This rating action was prompted by the company's announcement that it plans to issue $40 million of senior add-on notes, bringing the total amount of senior notes to $275 million from $235 million. The company plans to use proceeds from the add-on notes for the repayment of debt, general corporate purposes, and acquisitions. As part of this action, Moody's also affirmed the SGL-2 speculative grade liquidity rating. The ratings outlook remains stable. The ratings affirmation reflects Moody's view that Coleman's credit profile remains consistent with the B2 ratings category, even as the proposed add-on senior notes increase pro forma financial leverage to 5.4 times from 4.7 times as of December 31, 2009 (including Moody's standard analytical adjustments). These ratings were affirmed: -- Corporate family rating at B2; -- Probability-of-default rating at B2; -- $275 million senior unsecured notes due 2018 at B3. Point estimate revised to (LGD4, 64%) from (LGD4, 66%); -- Speculative Grade Liquidity rating at SGL-2. The stable ratings outlook incorporates Moody's expectation that a likely recovery in Coleman's product volumes should translate into improved financial performance and credit metrics over the near- term. The last rating action was on January 20, 2010, when Moody's assigned a B3 rating to Coleman's then proposed $235 million senior notes due 2018. As part of this action, Moody's also affirmed the company's B2 corporate family and probability-of- default ratings, and the SGL-2 speculative grade liquidity rating. Headquartered in Waukegan, Illinois, Coleman Cable, Inc., is a leading designer, developer, manufacturer and supplier of electrical wire and cable products for consumer, commercial and industrial applications, with operations primarily in the United States. The company reported sales of $504 million for the fiscal-year ended December 31, 2009. COLEMAN CABLE: S&P Affirms Rating on Senior Notes at 'B' -------------------------------------------------------- Standard & Poor's Ratings Services said that it is affirming its 'B' issue-level rating on Waukegan, Ill.-based Coleman Cable Inc.'s senior notes after the company announced that it is planning to offer $40 million 9% senior notes due 2018. These notes are an add-on to the $235 million of senior notes the company issued on Feb. 3, 2010. The '5' recovery rating is unchanged and indicates S&P's expectation for modest (10%-30%) recovery in the event of a payment default. Proceeds from the proposed notes will be used for general corporate purposes. Coleman's corporate credit rating is 'B+' and remains unchanged. The outlook is stable. Coleman designs, manufactures, and supplies wire and cable products for a variety of construction, industrial, and consumer markets. Debt outstanding pro forma for the proposed transaction totaled about $275 million at Dec. 31, 2009. Coleman's ratings reflect the highly competitive nature of the wire-and-cable manufacturing industry, the company's modest operating scale, its exposure to volatile raw-material costs, and its aggressive financial profile. The company's diversified branded product set, long-term distributor relationships, and solid liquidity partially offset these factors. Ratings List Coleman Cable Inc. Corporate Credit Rating B+/Stable/-- Ratings Affirmed $275 million senior notes due 2018 B Recovery Rating 5 COLONIAL PROPERTIES: S&P Affirms 'BB+' Corporate Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB+' corporate credit rating on Colonial Properties Trust. At the same time, S&P affirmed its 'BB+' issue-level rating and '3' recovery rating on the company's $745 million senior unsecured notes, indicating its expectation for a meaningful (50%-70%) recovery in the event of a payment default. The outlook is stable. "S&P's ratings on Colonial reflect the company's comparatively young portfolio of good quality secondary market apartment units and commercial properties, weaker but stable coverage measures, and improved leverage position," said credit analyst Eugene Nusinzon. "S&P also acknowledge the company's adequate liquidity profile, manageable near-term debt maturity schedule, reduced off- balance-sheet arrangements, and reduced development exposure. However, secured debt levels have risen and S&P expect apartment fundamentals to remain choppy in most of Colonial's key markets through 2010." S&P expects Colonial's continued focus on deleveraging and planned equity funded acquisitions to somewhat offset anticipated weak operating fundamentals this year. S&P also expect the company to maintain an adequate liquidity position and to continue to cover all fixed charges with funds from operations. S&P would consider a downgrade if revenue declines and pushes the company's fixed- charge coverage below the 1.6x level contemplated in S&P's scenario analysis or if dividend coverage falls below 1.0x. S&P's expectation for weak operating conditions in the near-term precludes upward rating momentum at this time. However, S&P would consider an upgrade if the company profitably completes its portfolio repositioning and improves its liquidity position and if the company strengthens and maintains debt service coverage and fixed-charge coverage above 2.0x and 1.8x, respectively. COMMUNITY HEALTH: Bank Debt Trades at 4% Off in Secondary Market ---------------------------------------------------------------- Participations in a syndicated loan under which Community Health Systems, Inc., is a borrower traded in the secondary market at 95.64 cents-on-the-dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.80 percentage points from the previous week, The Journal relates. The Company pays 225 basis points above LIBOR to borrow under the facility. The bank loan matures on May 1, 2014, and carries Moody's Ba3 rating and Standard & Poor's BB rating. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Based in Franklin, Tennessee, Community Health Systems, Inc. -- http://www.chs.net/-- is the largest publicly traded operator of hospitals in the United States in terms of number of facilities and net operating revenues. The company provides healthcare services through these hospitals that it owns and operates in non- urban and selected urban markets throughout the United States. The company also owns and operates home health agencies, including four home health agencies located in markets where it does not operate a hospital. Through its wholly owned subsidiary, Quorum Health Resources, LLC, the company provides management and consulting services to non-affiliated general acute care hospitals located throughout the United States. CONGOLEUM CORP: Files 10-K; Posts $15.2 Million Net Loss -------------------------------------------------------- On March 19, 2010, Congoleum Corporation filed its annual report on Form 10-K for the year ended December 31, 2009. The Company reported a net loss of $15.2 million on $134.9 million of revenue for the year ended December 31, 2009, compared with a net loss of $14.6 million on $172.6 million of revenue for 2008. The Company's balance sheet as of Dec. 31, 2009, showed $163.7 million in assets and $254.0 million of debts, for a stockholders' deficit of $90.3 million. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5b55 About Congoleum Corporation Based in Mercerville, New Jersey, Congoleum Corporation (PINKSHEETS: CGMCQ) -- http://www.congoleum.com/-- manufactures resilient sheet and tile and plank flooring products available in a wide variety of product features, designs and colors. The Company filed for Chapter 11 protection on December 31, 2003 (Bankr. D. N.J. Case No. 03-51524) as a means to resolve claims asserted against it related to the use of asbestos in its products decades ago. Richard L. Epling, Esq., Robin L. Spear, Esq., and Kerry A. Brennan, Esq., at Pillsbury Winthrop Shaw Pittman LLP, and Paul S. Hollander, Esq., and James L. DeLuca, Esq., at Okin, Hollander & DeLuca, LLP, represent the Debtors. The Asbestos Claimants' Committee is represented by Peter Van N. Lockwood, Esq., and Ronald Reinsel, Esq., at Caplin & Drysdale, Chtd. The Bondholders' Committee is represented by Michael S. Stamer, Esq., and James R. Savin, Esq., at Akin Gump Strauss Hauer & Feld LLP. Nancy Isaacson, Esq., at Goldstein Isaacson, PC, represents the Official Committee of Unsecured Creditors. R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, the Court-appointed Futures Claimants Representative, is represented by Roger Frankel, Esq., Richard Wyron, Esq., and Jonathan P. Guy, Esq., at Orrick Herrington & Sutcliffe LLP, and Stephen B. Ravin, Esq., at Forman Holt Eliades & Ravin LLC. American Biltrite, Inc. (AMEX: ABL), which owns 55% of Congoleum, is represented by Matthew Ward, Esq., Mark S. Chehi, Esq., Christopher S. Chow, Esq., and Matthew P. Ward, Esq., at Skadden Arps Slate Meagher & Flom. Various entities have filed bankruptcy plans for the Debtors. In February 2008, the legal representative for future asbestos- related claimants; the asbestos claimants' committee; the official Committee of holders of the Company's 8-5/8 % Senior Notes due August 1, 2008; and Congoleum jointly filed a joint plan of reorganization. Various objections to the Joint Plan were filed. In June 2008, the Bankruptcy Court issued a ruling that the Joint Plan was not legally confirmable. In August 2008, the Bondholders' Committee, the ACC, the FCR, representatives of holders of prepetition settlements and Congoleum entered into a term sheet describing the proposed material terms of a new plan of reorganization and a settlement of avoidance litigation with respect to prepetition claim settlement. Certain insurers and a large bondholder filed objections to the Litigation Settlement or reserved their rights to object to confirmation of the Amended Joint Plan. The Bankruptcy Court approved the Litigation Settlement in October 2008. The Amended Joint Plan was filed in November 2008. In January 2009, certain insurers filed a motion for summary judgment seeking denial of confirmation of the Amended Joint Plan. On February 26, 2009, the Bankruptcy Court rendered an opinion denying confirmation of the Amended Joint Plan. Moreover, the Bankruptcy Court dismissed Congoleum's bankruptcy case. On February 27, 2009, Congoleum and the Bondholders' Committee appealed the Order of Dismissal and the ruling denying plan confirmation to the U.S. District Court for the District of New Jersey. The District Court overturned the dismissal order, and assumed jurisdiction of the bankruptcy proceedings. CONSTANTINE KERASIOTES: Case Summary & 14 Largest Unsec. Creditors ------------------------------------------------------------------ Debtor: Constantine Steven Kerasiotes 1202 Steuben Court Odenton, MD 21113 Bankruptcy Case No.: 10-15748 Chapter 11 Petition Date: March 19, 2010 Court: United States Bankruptcy Court District of Maryland (Baltimore) Judge: Duncan W. Keir Debtor's Counsel: Daniel M. Press, Esq. Chung & Press, P.C. 6718 Whittier Ave., Ste. 200 McLean, VA 22101 Tel: (703) 734-3800 Fax: (703) 734-0590 Email: dpress@chung-press.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company has assets of $2,784,706, and total debts of $3,843,873. A list of the Company's 14 largest unsecured creditors is available for free at: http://bankrupt.com/misc/mdb10-15748.pdf The petition was signed by Constantine Steven Kerasiotes. COUNTRY IMPORTED: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: Country Imported Car Corp. dba BMW of The Hamptons dba MINI of The Hamptons 35 Montauk Highway Southampton, NY 11968 Bankruptcy Case No.: 10-71817 Chapter 11 Petition Date: March 17, 2010 Court: United States Bankruptcy Court Eastern District of New York (Central Islip) Judge: Alan S. Trust Debtor's Counsel: John Westerman, Esq. Westerman Ball Ederer Miller & Sharfstei 1201 RXR Plaza Uniondale, NY 11556 Tel: (516) 622-9200 Fax: (516) 622-9212 Email: jwesterman@westermanllp.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 The Debtor did not file a list of its 20 largest unsecured creditors when it filed its petition. The petition was signed by Michael Caruso, vice president of the Company. CRDENTIA CORP: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Crdentia Corp. fka LIfen, Inc. 1964 Howell Branch Road, Suite 206 Winter Park, FL 32792 Bankruptcy Case No.: 10-10926 About the Company: Headquartered in Winter Park, Florida, Crdentia Corp. provides healthcare staffing services. Crdentia built a healthcare staffing company by acquiring 12 companies between 2003 and 2008. Crdentia provides healthcare staffing services to more 1,000 hospital, government, clinic, nursing home, and home care clients in five states. Chapter 11 Petition Date: March 17, 2010 Court: United States Bankruptcy Court District of Delaware (Delaware) Debtor's Counsel: Jamie Lynne Edmonson, Esq. Bayard PA 222 Delaware Avenue Wilmington, DE 19801 Tel: (302) 429-4234 Fax: (302) 658-6395 Email: jedmonson@bayardlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 A full-text copy of the Debtor's petition, including a list of its 20 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/deb10-10926.pdf The petition was signed by Rebecca Irish, chief financial officer, treasury & secretary of the Company. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- ATS Universal, LLC 10-10927 3/17/10 fka ATS Health Services Dba South Queens Kentuck Fried Chicken Assets: $0 to $50,000 Debts: $10 million to $50 million CVR ENERGY: Moody's Upgrades Corporate Family Rating to 'B1' ------------------------------------------------------------ Moody's Investors Service upgraded CVR Energy, Inc.'s Corporate Family Rating to B1 from B2, Probability of Default Rating to B1 from B2, its bank revolver to Ba3 (LGD 2; 29%) from B2 (LGD 3; 31%) and affirmed CVR's SGL-3 Speculative Grade Liquidity rating. Moody's also assigned a Ba3 (LGD 2; 29%) rating to CVR's pending $250 million offering of first lien senior secured notes due 2010 and a B3 (LGD 5; 79%) rating to its pending $250 million of second lien senior secured notes due 2017. Importantly, the note and revolver ratings assume the issuance of $250 million in second lien senior notes. The rating outlook is stable. Note proceeds will be used to repay CVR's remaining $453.3 million (at February 28, 2010) Tranche D first secured Term Loan balance. Moody's will withdraw the B2 term loan rating upon its retirement. The bank revolver is first secured by all working capital and second secured by fixed assets. The first lien notes are first secured on fixed assets and second secured on working capital. The second lien notes would be third in line behind each creditor on each asset class if CVR replaced its current secured corporate revolver with an asset-based borrowing base revolver. In spite of a continuing serious sector downturn, the new ratings reflect CVR's consistent sound, though reduced, earnings during the down-cycle, the earnings benefit and diversification provided by CVR's low cost internally generated petroleum coke gas-fired fertilizer business, favorable inland location and ample access to somewhat discounted crude oil feed, and the added earnings power and complexity of the Coffeyville refinery after the completion of several years of substantial upgrading capital spending. CVR reduced leverage on complexity barrels due both to increased complexity capacity after capital spending and reduced debt. Comparatively low expected capital spending in 2010 and 2011 relative to expected cash flow leaves room for further debt reduction. The ratings are restrained by CVR's comparatively small scale and low level of risk diversification as a single stand-alone refinery; very difficult sector conditions expected during the 2010 and 2011; significant leverage when weighed against the fact that a standalone refinery is exposed to inherent significant unscheduled downtime risk; potential forthcoming increased capital outlays if CVR proceeds with a potential fertilizer expansion; the reduced fuel cost advantage of CVR's fertilizer business during current times of reduced natural gas prices, high fixed costs in the fertilizer unit, and likelihood that CVR will remain in an acquisition mode to reduce portfolio risk. The diversification benefit provided by the fertilizer business is also reduced to a degree by the fact that the refinery must be A further restraint is that CVR may eventually convert its fertilizer business to a Master Limited Partnership. However, Moody's believe CVR would remain a disciplined acquirer. Its ratings incorporate the expectation that any acquisitions would be of a suitably attractive refinery, that an added refinery would diversify key operating risks, and that it would be amply funded with equity relative to reasonable cash flow expectations and the complexity barrels purchased. Furthermore, though operating only one refinery, downtime risk is moderated to a degree by process redundancy in key units: atmospheric and vacuum distillation, the coker, distillate hydrotreating and sulfur recovery, and in sources of essential hydrogen. After $521 million invested in its refinery since 2005, including capacity expansion, a new continuous catalytic reformer, CVR's completion of CVR's future non-acquisition capital spending plans over the medium term are modest enough to allow for free cash flow generation under reasonably anticipated sector conditions with the potential for debt reduction. The company states that it may reduce debt by $25 million or more during 2010. CVR's EBIT / Throughput Barrels, EBIT / Interest Expense, and Retained Cash Flow / Debt metrics have been comparatively strong during the down-cycle, mapping to Ba and investment grade levels, and its Debt / Complexity Barrels has fallen and crossed into investment grade territory. CVR's gathering system captures crude cost advantages and it regional location and upgrading capacity add further margin power to its throughput. CVR reports that it had boosted its Nelson Complexity Index to 12.2 by the end of 2009 from 9.5 in 2005 and that it believes it will increase further to 12.9 by mid-2010. CVR yields a comparatively high 92% proportion of total output as high value gasoline and diesel. Its new continuous catalytic reformer, coking capacity, expanded cracking capacity and completion of low sulfur gasoline and ultra-low sulfur diesel capacity have also reduced its proportion of low premium gasoline and boosted the proportion of premium gasoline. The last rating action on CVR was on December 5, 2007, when Moody's upgraded its Corporate Family Rating from Caa1 to B2, senior first secured debt ratings from Caa1 (LGD 3; 31%) to B2 (LGD 3; 31%), Probability of Default rating from Caa2 to B3, and assigned a stable outlook. CVR Energy, Inc., is headquartered in Sugar Land, Texas. It operates a 115,000 barrel-per-day crude oil refinery in Coffeyville, located in southeastern Kansas, a fertilizer production business, and a crude oil gathering system spanning Kansas, Oklahoma, western Missouri, and eastern Colorado. CVR produces a very low level of premium gasoline (to be addressed with a new) and it carries the higher unit costs of comparatively low energy and heat efficiency. DA-LITE SCREEN: Moody's Assigns 'B1' Rating on $105 Mil. Notes -------------------------------------------------------------- Moody's Investors Service assigned a B1 rating to Da-Lite's proposed $105 million senior unsecured notes due 2015 to be issued under rule 144a. Concurrently, Moody's affirmed Da-Lite's B1 Corporate Family and Probability of Default Ratings. The ratings outlook remains negative. Proceeds from the proposed notes will be used to refinance Da- Lite's existing $98 million 9½% senior unsecured notes due 2011 and pay related fees and transaction expenses. The new notes will be general senior unsecured obligations with guarantees by all existing and future wholly owned domestic subsidiaries. Da-Lite's B1 corporate family rating reflects its very small scale, narrow product line and increased competition from low cost screen manufacturers, both in the U.S. and China, which could cause longer-term erosion to its market share or pressure operating margins, especially in smaller sized screens. However, the rating also reflects the expectation for good liquidity over the next twelve months, supported by positive free cash flow and revolver availability, and solid credit metrics with modest cushion to absorb further weakening. The rating also reflects Da- Lite's well-recognized brand name and leading market share in the projection screen industry that help drive its double-digit operating margins. The negative ratings outlook reflects Moody's concern that weak economic conditions will continue to negatively impact Da-Lite's sales volume and profitability, potentially depleting the cushion under its currently solid credit metrics. Ratings assigned: -- $105 million Senior Unsecured Notes, due 2015, B1 (LGD 4, 51%) Ratings affirmed: -- Corporate Family Rating at B1 -- Probability of Default Rating at B1 -- $98 million Senior Unsecured Notes, due 2011 at B1 (LGD 4, 51%); to be withdrawn upon completion of the refinancing transaction. -- SGL-2 Speculative Grade Liquidity Rating The ratings outlook is negative The last rating action in Da-Lite occurred on August 31, 2009, when Moody's affirmed the company's B1 CFR and revised the outlook to negative from stable. Da-Lite Screen Company, Inc., headquartered in Warsaw, Indiana, is a major manufacturer of projection screens which are distributed worldwide. Revenues were approximately $130 million for the fiscal year ended January 1, 2010. DA-LITE SCREEN: S&P Affirms 'B' Corporate Credit Rating ------------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed its 'B' corporate credit rating on Warsaw, Ind.-based Da-Lite Screen Co. Inc. At the same time, S&P assigned its 'B' issue-level rating to the proposed $105 million senior unsecured notes due 2015, the same as the company's corporate credit rating. The recovery rating on the proposed senior unsecured notes is '4', indicating S&P's expectation of average (30% to 50%) recovery in the event of a payment default or bankruptcy. The outlook is negative. S&P expect proceeds from the proposed issuance to be used primarily to repay Da-Lite's existing $160 million 9.5% senior unsecured notes due May 15, 2011, which have been reduced to about $98 million over time through open market repurchases below par. The company expects to extend its $19.5 million bi-lateral committed senior unsecured revolving credit facility to May 2012. S&P's ratings assume the proposed transactions, including the new notes and revolver extension, close on substantially the same terms presented to us. S&P will review the ratings upon receipt of final documentation. Upon closing of the proposed notes, S&P expects to withdraw its ratings on the company's existing senior unsecured notes, including the 'B' issue and '4' recovery rating. Pro forma for the proposed transactions, total debt outstanding is approximately $111 million. "The ratings on Da-Lite reflect the company's narrow business focus, expectations for continued weak demand, very modest liquidity, competitive operating environment, exposure to technology risk, and potential for profit erosion if commodity costs increase," said Standard & poor's credit analyst Jerry Phelan. "These concerns exist despite the company's good position in the niche projector screen industry, historically strong, albeit decreasing, operating margins, and recent cost-cutting initiatives." Da-Lite is a narrowly focused manufacturer and marketer of projection screens and related presentation products primarily sold to Business/IT, educational, hospitality, and other markets. The company is the largest player in this niche product category in North America and Europe, with global market share estimated at about 35%. About 85% of sales come from U.S. operations and 15% from European operations. S&P is concerned about the fragile economic environment, discretionary nature of the company's product offering, and limited liquidity at close, despite cost reductions achieved during the second half of 2009. S&P could lower the rating if S&P believes the company's limited liquidity could become strained due to a weakening economic environment, perhaps associated with lower corporate or educational customer spending, an increase in commodity input costs, or if previous cost cutting initiatives prove to be unsustainable. While a rating upgrade is unlikely, an outlook change to stable from negative over the near term is possible if sustainable EBITDA expansion leads to an improvement in liquidity, perhaps due to better than expected demand for Da- Lite's products or additional cost cutting initiatives. DEAN FOODS: Bank Debt Trades at 3% Off in Secondary Market ---------------------------------------------------------- Participations in a syndicated loan under which Dean Foods Company is a borrower traded in the secondary market at 97.05 cents-on- the-dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.80 percentage points from the previous week, The Journal relates. The Company pays 175 basis points above LIBOR to borrow under the facility. The bank loan matures on March 22, 2014, and carries Moody's Ba3 rating and Standard & Poor's BB rating. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Dean Foods Company is the largest processor and distributor of milk and various other dairy products in the United States, with dairy operations accounting for around 79% of its net sales in FY2008. The company also markets and sells a variety of branded dairy and dairy-related products including, Silk soymilk and cultured soy products, Horizon Organic dairy products, International Delight coffee creamers and LAND O'LAKES creamers and fluid dairy products. Headquartered in Dallas, Texas, Dean Foods had sales in the last twelve months ending March 31, 2009, of approximately $12.1 billion. Dean Foods carries a 'B1' corporate family rating from Moody's. DEN-6768 LP: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Den-6768, LP aka Denny's Round Rock c/o Amer Hammoud 600 Round Rock West Dr., Suite 404 Round Rock, TX 78681 Bankruptcy Case No.: 10-10717 Chapter 11 Petition Date: March 18, 2010 Court: United States Bankruptcy Court Western District of Texas (Austin) Judge: Craig A. Gargotta Debtor's Counsel: Barbara M. Barron, Esq. Barron & Newburger, P.C. 1212 Guadalupe, #104 Austin, TX 78701 Tel: (512) 476-9103 Fax: (512) 476-9253 Email: bbarron@bnpclaw.com Stephen W. Sather, Esq. Barron & Newburger, P.C. 1212 Guadalupe, Suite 104 Austin, TX 78701 Tel: (512) 476-9103 Ext. 220 Fax: (512) 476-9253 Email: ssather@bnpclaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A full-text copy of the Debtor's petition, including a list of its 20 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/txwb10-10717.pdf The petition was signed by Amer J. Hammoud. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Den-7300, LP 10-10720 3/18/10 aka Denny's Lakeline DEVELOPMENT CORP: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Development Corporation Viva Burrito 860 E. 16th Street Tucson, AZ 85719 Bankruptcy Case No.: 10-07604 Chapter 11 Petition Date: March 19, 2010 Court: United States Bankruptcy Court District of Arizona (Tucson) Judge: Chief Judge James M. Marlar Debtor's Counsel: Albert Blankenship, Jr., Esq. 2912 N. Tucson Blvd. Tucson, AZ 85716 Tel: (520) 881-2300 Fax: (520) 326-3599 Email: azal@azgalaxyonline.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company has assets of $2,111,879, and total debts of $4,288,722. A full-text copy of the Debtor's petition, including a list of its 20 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/azb10-07604.pdf The petition was signed by Juan Beltran. DEX MEDIA EAST: Bank Debt Trades at 11% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Dex Media East LLC is a borrower traded in the secondary market at 89.17 cents-on- the-dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 1.81 percentage points from the previous week, The Journal relates. The Company pays 250 basis points above LIBOR to borrow under the facility, which matures on Oct. 24, 2014. Moody's and Standard & Poor's do not rate the debt. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Based in Cary, North Carolina, R.H. Donnelley Corp., fka The Dun & Bradstreet Corp. (NYSE: RHD) -- http://www.rhdonnelley.com/-- publishes and distributes print and online directories in the U.S. It offers print directory advertising products, such as yellow pages and white pages directories. R.H. Donnelley Inc.; Dex Media, Inc.; and Local Launch, Inc., are the company's only direct wholly owned subsidiaries. Dex Media East, LLC, is a publisher of the official yellow pages and white pages directories for Qwest Communications International Inc. (Qwest) in the states, where Qwest is the primary incumbent local exchange carrier, such as Colorado, Iowa, Minnesota, Nebraska, New Mexico, North Dakota and South Dakota. R.H. Donnelley Corp. and 19 of its affiliates, including Dex Media East LLC, Dex Media West LLC and Dex Media Inc., filed for Chapter 11 protection on May 28, 2009 (Bank. D. Del. Case No. 09-11833 through 09-11852), after missing a $55 million interest payment on its senior unsecured notes due April 15. James F. Conlan, Esq., Larry J. Nyhan, Esq., Jeffrey C. Steen, Esq., Jeffrey E. Bjork, Esq., and Peter K. Booth, Esq., at Sidley Austin LLP, in Chicago, Illinois represent the Debtors in their restructuring efforts. Edmon L. Morton, Esq., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP, in Wilmington, Delaware, serve as the Debtors' local counsel. The Debtors' financial advisor is Deloitte Financial Advisory Services LLP while its investment banker is Lazard Freres & Co. LLC. The Garden City Group, Inc., is claims and noticing agent. As of March 31, 2009, the Company had $929,829,000 in total assets and $1,023,526,000 in total liabilities, resulting in $93,697,000 in total shareholders' deficit. Bankruptcy Creditors' Service, Inc., publishes R.H. Donnelley Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of R.H. Donnelley Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) DEX MEDIA WEST: Bank Debt Trades at 5% Off in Secondary Market -------------------------------------------------------------- Participations in a syndicated loan under which Dex Media West LLC is a borrower traded in the secondary market at 95.21 cents-on- the-dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 0.73 percentage points from the previous week, The Journal relates. The Company pays 450 basis points above LIBOR to borrow under the facility, which matures on Oct. 24, 2014. Moody's and Standard & Poor's do not rate the debt. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Dex Media West LLC is a subsidiary of Dex Media West, Inc., and an indirect wholly owned subsidiary of Dex Media, Inc. Dex Media is a direct wholly owned subsidiary of R.H. Donnelley Corporation. Dex Media West is the exclusive publisher of the official yellow pages and white pages directories for Qwest Corporation, the local exchange carrier of Qwest Communications International Inc., in Arizona, Idaho, Montana, Oregon, Utah, Washington, and Wyoming. R.H. Donnelley Corp. and 19 of its affiliates, including Dex Media East LLC, Dex Media West LLC and Dex Media Inc., filed for Chapter 11 protection on May 28, 2009 (Bank. D. Del. Case No. 09-11833 through 09-11852), after missing a $55 million interest payment on its senior unsecured notes due April 15. James F. Conlan, Esq., Larry J. Nyhan, Esq., Jeffrey C. Steen, Esq., Jeffrey E. Bjork, Esq., and Peter K. Booth, Esq., at Sidley Austin LLP, in Chicago, Illinois represent the Debtors in their restructuring efforts. Edmon L. Morton, Esq., and Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor LLP, in Wilmington, Delaware, serve as the Debtors' local counsel. The Debtors' financial advisor is Deloitte Financial Advisory Services LLP while its investment banker is Lazard Freres & Co. LLC. The Garden City Group, Inc., is claims and noticing agent. As of March 31, 2009, the Company had $929,829,000 in total assets and $1,023,526,000 in total liabilities, resulting in $93,697,000 in total shareholders' deficit. Bankruptcy Creditors' Service, Inc., publishes R.H. Donnelley Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of R.H. Donnelley Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) DIAMOND DISTRIBUTION: Case Summary & 20 Largest Unsec. Creditors ---------------------------------------------------------------- Debtor: Diamond Distribution, Inc. 1667Mt. Vernon Pomona, CA 91768 Bankruptcy Case No.: 10-20208 Chapter 11 Petition Date: March 19, 2010 Court: United States Bankruptcy Court Central District of California (Los Angeles) Judge: Alan M. Ahart Debtor's Counsel: Mark E. Brenner, Esq. 7009 Owensmouth, Ste 201 Canoga Park, CA 91303 Tel: (818) 313-9966 Email: mb@brennerlex.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A full-text copy of the Debtor's petition, including a list of its 20 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/cacb10-20208.pdf The petition was signed by Jose Castellanos, CEO of the Company. DORIT EDEN: Case Summary & 1 Largest Unsecured Creditor ------------------------------------------------------- Debtor: Dorit Eden 9143 St. Ives Drive Los Angeles, CA 90069 Bankruptcy Case No.: 10-20047 Chapter 11 Petition Date: March 18, 2010 Court: United States Bankruptcy Court Central District of California (Los Angeles) Judge: Thomas B. Donovan Debtor's Counsel: Robert S. Altagen, Esq. Law Offices of Robert S. Altagen 1111 Corporate Ctr Dr #201 Monterey Park, CA 91754 Tel: (323) 268-9588 Fax: (323) 268-8742 Email: rsaink@earthlink.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: 500,001 to $1,000,000 According to the schedules, the Company has assets of $1,304,000 and total debts of $831,450. The Debtor identified Bank of America with debt claim for $19,936 as its largest unsecured creditor. A full-text copy of the Debtor's petition, including a list of its largest unsecured creditor, is available for free at: http://bankrupt.com/misc/cacb10-20047.pdf The petition was signed by Ms. Eden. DOT VN: Posts $1.4 Million Net Loss in Q3 Ended January 31 ---------------------------------------------------------- Dot VN, Inc., filed its quarterly report on Form 10-Q, showing a net loss of $1.4 million on $225,311 of revenue for the three months ended January 31, 2010, compared with a net loss of $918,870 on $190,985 of revenue for the same period of 2009. The Company's balance sheet as of Dec. 31, 2009, showed $2.5 million in assets and $10.0 million of debts, for a stockholders' deficit of $7.5 million. Chang G. Park, CPA, in San Diego, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. Mr. Park noted of the Company's losses from operations. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5b2b San Diego, Calif.-based Dot VN, Inc. is an Internet and telecommunications company focused on the Vietnamese market and is a leading domain name registrar of Vietnam's country code Top Level Domain '.vn' and a leading provider of services that enable businesses and individuals to establish, maintain and evolve an online presence in Vietnam. DOWNEY REGIONAL: Defaults Under Healthcare Finance DIP Facility --------------------------------------------------------------- netDockets says Healthcare Finance Group, LLC, on March 19, 2010, filed a notice with the Bankruptcy Court asserting that Downey Regional Medical Center-Hospital, Inc. had defaulted on its debtor-in-possession financing agreements in multiple ways. Healthcare Finance Group is the administrative and collateral agent for Downey's DIP lenders. According to netDockets, the notice asserts six separate defaults are outstanding: 1. Downey's cumulative net cash flow violated applicable covenants. The DIP Agent alleges that Downey violated the covenant for these periods: October 23, 2009, November 6, 2009, November 20, 2009, November 27, 2009 and December 4, 2009. 2. Downey's cumulative disbursements by line item were in excess of permitted variance. The DIP Agent alleges that Downey's cumulative disbursements for each of the following periods was more than 125% of the projected disbursements of the DIP Budget: October 23, 2009, October 30, 2009, November 6, 2009, November 20, 2009, November 27, 2009, December 4, 2009, December 11, 2009, December 18, 2009, December 25, 2009, January 1, 2010, January 8, 2010, January 15, 2010, January 22, 2010, January 29, 2010, February 5, 2010, February 12, 2010, February 19, 2010, February 26, 2010 and March 5, 2010. 3. Downey's EBITDA was less than $1.2 million. The DIP Agent alleges that Downey's EBITDA failed to meet the requirements for each month from September 2009 through January 2010 and claims the following EBITDA for the relevant periods: positive $38,000 for September, 2009; negative $210,000 for October, 2009; positive $151,000 for November, 2009; positive $289,000 for December 2009; and positive $419,000 for January, 2010. 4. Downey failed to submit variance and compliance reports. The DIP Agent alleges that Downey failed to submit the required reports for the following weeks: September 25, 2009, October 2, 2009, October 9, 2009, October 16, 2009, and November 13, 2009. 5. Downey failed to provide audited financial statements within 90 days after the fiscal year end. The DIP Agent alleges that Downey has still not provided annual audited financial statements and the corresponding auditor's unqualified report letter for the fiscal year ended June 30, 2009. The agent asserts that this constituted an event of default occurring on September 29, 2009 following the end of the 90-day period. 6. Downey failed to provide monthly and quarterly financial statements. The DIP Agent alleges that Downey failed to provide monthly and quarterly financial statements "on a timely basis" for the months of November 2009, December 2009 and January 2010. According to netDockets, while Healthcare Finance Group asserts that the claimed events of default would provide the DIP lenders to declare a "Termination Date" under the court's final DIP financing order and to assert rights and remedies as a result of the occurrence of a Termination Date, the notice expressly states that it is "not intended to state a Termination Date, which right is expressly reserved." Rather, the notice only presently asserts the right to collect interest at a default rate, which is 4.00% above the otherwise applicable interest rate. The notice further asserts that interest has accrued at the default rate since the earliest event of default (September 29, 2009) and is currently due and payable. The notice also asserts that interest will continue to accrue at the default rate until repayment in full of the DIP loan obligations. Healthcare Finance Group is represented by McGuireWoods LLP. netDockets says the Bankruptcy Court approved the DIP facility on a final basis in an October 19, 2009 order. About Downey Regional Medical Los Angeles, California-based Downey Regional Medical Center- Hospital Inc. operates a non-profit community hospital. The Company filed for Chapter 11 on Sept. 14, 2009 (Bankr. C.D. Calif. Case No. 09-34714). Lisa Hill Fenning, Esq., represents the Debtor in its restructuring effort. The Debtor did not file a list of its 20 largest unsecured creditors when it filed its petition. In its petition, the Debtor listed assets and debts both ranging from $10,000,001 to $50,000,000. ENERGYCONNECT GROUP: RBSM LLP Raises Going Concern Doubt -------------------------------------------------------- On March 18, 2010, EnergyConnect Group, Inc., filed its annual report on Form 10-K for the year ended January 2, 2010. RBSM LLP, in New York, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company is experiencing difficulty in generating sufficient cash flow to meet its obligations and sustain its operations. The Company reported a net loss of $3.2 million on $19.9 million of revenue for the year ended January 2, 2010, compared to a net loss of $34.1 million on $25.9 million of revenue for the year ended January 3, 2009. The Company's balance sheet as of January 2, 2010, showed $9.8 million in assets, $9.7 million of debts, and $28,540 of stockholders' equity. A full-text copy of the Company's annual report is available for free at http://researcharchives.com/t/s?5b5b Campbell, Calif.-based EnergyConnect Group, Inc., is a provider of demand response services to the electricity grid. Demand response programs provide grid operators with additional electricity generation capacity by encouraging consumers to curtail their electricity usage. ENVIROSOLUTIONS HOLDINGS: Files Schedules of Assets & Liabilities ----------------------------------------------------------------- EnviroSolutions Holdings, Inc., has filed with the U.S. Bankruptcy Court for the Southern District of New York its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $0 B. Personal Property $2,109 + undetermined amounts C. Property Claimed as Exempt D. Creditors Holding Secured Claims $210,900,000 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $42,662,963 + undetermined amounts ----------- ----------- TOTAL $2,109 $253,562,963 Based in Manassas, Virginia, EnviroSolutions Holdings, Inc., is an integrated solid waste management company with a presence in Virginia, Maryland, New Jersey, Kentucky, West Virginia, and the District of Columbia. The company's assets include three landfills, four transfer stations and several hauling and collection operations. The Company filed for Chapter 11 bankruptcy protection on March 10, 2010 (Bankr. S.D.N.Y. Case No. 10-11261). John Longmire, Esq., at Willkie Farr & Gallagher LLP, assists the Company in its restructuring effort. Alvarez and Marsal North America, LLC, is the Company's restructuring advisor. The Company's financial advisor is Barclays Capital. The Company estimated its assets and liabilities at $100,000,001 to $500,000,000. ESCOM LLC: Involuntary Chapter 11 Case Summary ---------------------------------------------- Alleged Debtor: Escom LLC 23480 Park Sorrento Ste 206B Calabasas, CA 91302 Case Number: 10-13001 Involuntary Chapter 11 Petition Date: March 17, 2010 Court: Central District of California (San Fernando Valley) Judge: Geraldine Mund Petitioner's Counsel: Mark Chassman, Esq. 120 Broadway Suite 300 Santa Monica, CA 90401 Tel: (310) 576-2238 Debtors' Counsel: None. Debtor Filed Petition as Pro Se. Escom, LLC, and debtor-affiliates' petitioners: Petitioners Nature of Claim Claim Amount ----------- --------------- ------------ Washington Technology Secured $6,607,804 Associates LLC 9812 Falls Rd #114-331 Potomac, MD 20854 iEntertainment Inc. Secured $3,476,515 9812 Falls Rd #114-331 Potomac, MD 20854 AccountingMatters.com LLC Services Rendered $7,800 9812 Falls Rd #114-331 Potomac, MD 20854 --------- Total Amount of Petitioner's Claims: $10,092,119 ESKIDS LLC: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Eskids LLC PO Box 1034 Lynnwood, WA 98046 Bankruptcy Case No.: 10-12980 Chapter 11 Petition Date: March 18, 2010 Court: United States Bankruptcy Court Western District of Washington (Seattle) Debtor's Counsel: Frank S. Homsher, Esq. Tollefsen Law Office PLLC 18225 8th PL W Lynnwood, WA 98037 Tel: (425) 673-0300 Email: frank@tollefsenlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company has assets of $5,000,000, and total debts of $4,023,798. A full-text copy of the Debtor's petition, including a list of its 20 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/wawb09-12980.pdf The petition was signed by Eric W. Sundquist, managing member of the Company. FELIKS MLYNARCZYK: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Joint Debtors: Feliks J. Mlynarczyk Bozena Mlynarczyk 245 Sacred Eagle Ln. Sedona, AZ 86336 Bankruptcy Case No.: 10-07403 Chapter 11 Petition Date: March 18, 2010 Court: United States Bankruptcy Court District of Arizona (Phoenix) Debtors' Counsel: Pernell W. Mcguire, Esq. Mcguire Gardner, PLLC 320 N. Leroux, Suite A Flagstaff, AZ 86001 Tel: (928) 779-1173 Fax: (928) 779-1175 Email: pmcguire@mcguiregardner.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A full-text copy of the Debtors' petition, including a list of their 20 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/azb10-07403.pdf The petition was signed by the Joint Debtors. FIRST LOWNDES BANK: Closed; First Citizens Bank Assumes Deposits ---------------------------------------------------------------- First Lowndes Bank, Fort Deposit, Alabama, was closed March 19 by the Alabama Banking Department, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Citizens Bank, Luverne, Alabama, to assume all of the deposits of First Lowndes Bank. The four branches of First Lowndes Bank reopened on Saturday under normal business hours as branches of First Citizens Bank. Depositors of First Lowndes Bank will automatically become depositors of First Citizens Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their former First Lowndes Bank branch until they receive notice from First Citizens Bank that it has completed systems changes to allow other First Citizens Bank branches to process their accounts as well. As of December 31, 2009, First Lowndes Bank had around $137.2 million in total assets and $131.1 million in total deposits. First Citizens Bank did not pay the FDIC a premium to assume all of the deposits of First Lowndes Bank. In addition to assuming all of the deposits, First Citizens Bank agreed to purchase essentially all of the failed bank's assets. The FDIC and First Citizens Bank entered into a loss-share transaction on $104.1 million of First Lowndes Bank's assets. First Citizens Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html Customers who have questions about the transaction can call the FDIC toll-free at 1-800-450-5417. Interested parties also can visit the FDIC's Web site at: http://www.fdic.gov/bank/individual/failed/firstlowndes.html The FDIC estimates that the cost to the Deposit Insurance Fund will be $38.3 million. First Citizens Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to all alternatives. First Lowndes Bank is the 36th FDIC- insured institution to fail in the nation this year, and the first in Alabama. The last FDIC-insured institution closed in the state was New South Federal Savings Bank, Irondale, on December 18, 2009. FLEETWOOD ENTERPRISES: U.S. Trustee Fights Pachulski's $1.5M Bill ----------------------------------------------------------------- Bankruptcy Law360 reports that the U.S. trustee in Fleetwood Enterprises Inc.'s bankruptcy case has issued a scathing objection to a more than $1.5 million legal tab from Pachulski Stang Ziehl & Jones LLP, saying the firm billed for excessive clerical expenses and unexplained business meals. Based in Riverside, California, Fleetwood Enterprises, Inc., was the second largest manufactured housing maker in the U.S. and the largest manufacturer of recreational vehicles over 30 feet in length. Fleetwood Enterprises listed assets of $560 million against debt totaling $624 million in its bankruptcy petition. Fleetwood Enterprises, together with 19 of affiliates, filed for Chapter 11 protection on March 10, 2009 (Bankr. C.D. Calif. Lead Case No. 09-14254). Craig Millet, Esq., and Solmaz Kraus, Esq., at Gibson, Dunn & Crutcher LLP, represent the Debtors in their restructuring efforts. FTI Consulting Inc. is the financial advisors to the Debtors. The Debtors tapped Greenhill & Co. LLC as its investment banker. FAIRPOINT COMMS: Bank Debt Trades at 20% Off in Secondary Market ---------------------------------------------------------------- Participations in a syndicated loan under which FairPoint Communications, Inc., is a borrower traded in the secondary market at 79.79 cents-on-the-dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 2.51 percentage points from the previous week, The Journal relates. The debt matures on March 31, 2015. The Company pays 275 basis points above LIBOR to borrow under the loan facility. Moody's has withdrawn its rating, while Standard & Poor's has assigned a default rating on the bank debt. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. FairPoint Communications, Inc. (NYSE: FRP) -- http://www.fairpoint.com/-- is an industry leading provider of communications services to communities across the country. FairPoint owns and operates local exchange companies in 18 states offering advanced communications with a personal touch, including local and long distance voice, data, Internet, television and broadband services. FairPoint is traded on the New York Stock Exchange under the symbols FRP and FRP.BC. FairPoint and its affiliates filed for Chapter 11 on Oct. 26, 2009 (Bankr. D. Del. Case No. 09-16335). Rothschild Inc. is acting as financial advisor for the Company; AlixPartners, LLP as the restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP is the Company's counsel. BMC Group is claims and notice agent. As of June 30, 2009, FairPoint reported $3.24 billion in total assets, $321.41 million in total current liabilities, $2.91 billion in total long-term liabilities, and $1.23 million in total stockholders' equity. Bankruptcy Creditors' Service, Inc., publishes FairPoint Communications Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of FairPoint Communications Inc. and its debtor- affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) FAIRPOINT COMMS: Bar Date for Regulatory Agencies Extended ---------------------------------------------------------- In order to facilitate successful reorganization of FairPoint Communications Inc. and its debtor affiliates, the Debtors' Plan of Reorganization incorporates these Regulatory Settlements: * The settlement dated February 5, 2010, among FairPoint Communications, Inc., Northern New England Telephone Operations LLC and the Staff Advocates of the New Hampshire Public Utility Commission; * The settlement dated February 5, 2010, among FairPoint Communications, Telephone Operating Company of Vermont LLC and the Vermont Department of Public Service; and * The settlement dated February 9, 2010, among FairPoint Communications, NNETO, a representative appointed by the Maine Public Utilities Commission and the Maine Office of the Public Advocate. In view of these, Debtors FairPoint, NNETO and Telephone Operating Company of Vermont LLC stipulate with the VDPS, the Staff Advocates, the Maine Public Advocate and the Maine Public Utility Commission that: 1. The deadlines established by the Court for the filing of proofs of claim, objections to the Plan, and motions pursuant to Rule 3018 of the Federal Rules of Bankruptcy Procedure to temporarily allow claims for the purpose of voting on the Plan, are tolled with respect to the VPSB, the VDPS, NHPUC, the Maine Public Advocate and MPUC through March 25, 2010; provided that in no event will the VPSB, the NHPUC, the Maine Public Advocate or the MPUC seek that the Debtors re-solicit creditor votes with respect to an Amended Chapter 11 plan. 2. Section 3.4 of the Plan will include provisions that reflect that "the Debtors will reimburse the reasonable out-of-pocket expenses and costs of the State of New Hampshire, the VDPS, and the Vermont Public Service Board, the MPUC and the Maine Public Advocate in connection with their Chapter 11 cases. 3. As long as the applicable Regulatory Settlement is in effect as to a particular state, Section 8.3 of the Plan will provide that "Reorganized FairPoint may: (a) cause any or all of the Reorganized Debtors to be merged into one or more of Reorganized FairPoint, dissolved or otherwise consolidated, (b) cause the transfer of assets between or among Reorganized FairPoint, or (c) engage in any other transaction in furtherance of the Plan." 4. As long as the applicable Regulatory Settlement is in effect as to a particular state, Section 8.1 of the Plan will provide that "Reorganized FairPoint will take all actions necessary or reasonably required to effectuate that settlements and that settlements will be binding on Reorganized FairPoint." 5. As long as the applicable Regulatory Settlement is pending approval as to a particular state, the Debtors will not seek a ruling from the Bankruptcy Court to the effect that the regulations of that state requiring applicable regulatory approvals are pre-empted by the Bankruptcy Code. 6. As long as the applicable Regulatory Settlement is in effect as to a particular state, Sections 14.2 and 14.4 of the Plan "will not limit the implementation of a Regulatory Settlement or, as to the business and activities of FairPoint as conducted on and after the Effective Date of the Plan, the application and enforcement of applicable state law with respect to the regulation of the Debtors by any governmental unit including the MPUC, VPSB or the NHPUC." About FairPoint Communications FairPoint Communications, Inc. (NYSE: FRP) -- http://www.fairpoint.com/-- is an industry leading provider of communications services to communities across the country. FairPoint owns and operates local exchange companies in 18 states offering advanced communications with a personal touch, including local and long distance voice, data, Internet, television and broadband services. FairPoint is traded on the New York Stock Exchange under the symbols FRP and FRP.BC. Fairpoint and its affiliates filed for Chapter 11 on Oct. 26, 2009 (Bankr. S.D.N.Y. Case No. 09-16335). Rothschild Inc. is acting as financial advisor for the Company; AlixPartners, LLP as the restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP is the Company's counsel. BMC Group is claims and notice agent. As of June 30, 2009, Fairpoint reported $3.24 billion in total assets, $321.41 million in total current liabilities, $2.91 billion in total long-term liabilities, and $1.23 million in total stockholders' equity. Bankruptcy Creditors' Service, Inc., publishes Fairpoint Communications Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Fairpoint Communications Inc. and its debtor- affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) FAIRPOINT COMMS: Telephone Co. of Vermont's Schedules & Statement ----------------------------------------------------------------- Telephone Company of Vermont LLC Schedules of Assets and Liabilities A. Real Property $36,447,715 See http://bankrupt.com/misc/TOCV_SAL_A1.pdf B. Personal Property B.1 Cash on hand 0 B.2 Bank Accounts Bank of New York Mellon - 0167 0 Bank of New York Mellon - 0168 0 Bank of New York Mell0n - 0590 0 Fidelity Investments - 5742 0 B.13 Business Interests and stocks Undetermined See http://bankrupt.com/misc/TOCV_SAL_B13.pdf B.16 Accounts Receivable A/R Retail 31,556,083 A/R Wholesale 18,752,593 A/R Other 1,705,795 A/R NECA & USAC 685,584 Trade Payable Debit Balance Ciena Communications Inc. 67,014 Green Mountain Traffic Control, Inc. 15,897 B&N Sales & Service Inc. 758 FW Webb Company 102 Charles Truck Parts 90 A/R Allowance (6,794,052) B.23 Licenses FCC - Wireless License - WQJB443 Undetermined FCC - Wireless License - WQL766 Undetermined FCC - Wireless License - WQL769 Undetermined FCC - Wireless License - WQL770 Undetermined FCC - Wireless License - WQJM264 Undetermined FCC - Wireless License - WQJY656 Undetermined FCC - Wireless License - WQJY657 Undetermined FCC - Wireless License - WQJY658 Undetermined B.25 Vehicles 2,288,207 B.28 Office equipment, furnishings and supplies General purpose computers 428,134 B.29 Machinery Construction in Progress (Phone Plant) 43,397,510 Digital Switching and Circuit Equipment 89,401,983 Other Terminal Equipment 3,533,375 Outside Communication Equipment 183,593,800 Tools and other work equipment 1,688,285 B.35 Other Personal Property Prepaid Property Taxes 209,751 Prepaid Rent 176,691 TOTAL SCHEDULED ASSETS $407,155,316 ======================================================== C. Property Claimed as Exempt - D. Secured Claim Undetermined E. Unsecured Priority Claims $2,138,587 See http://bankrupt.com/misc/TOCV_SAL_E1.pdf F. Unsecured Non-priority Claims Trade Payables 4,838,445 See http://bankrupt.com/misc/TOCV_SAL_F1.pdf Litigation and Insurance Liabilities 0 See http://bankrupt.com/misc/TOCV_SAL_F2.pdf Other Liabilities 0 See http://bankrupt.com/misc/TOCV_SAL_F3.pdf Intercompany Claims (8,948,291) Billing and Collection Liabilities 0 See http://bankrupt.com/misc/TOCV_SAL_F5.pdf TOTAL SCHEDULED LIABILITIES ($1,971,259) ======================================================== Vermont's Statement of Financial Affairs Telephone Company of Vermont LLC Senior Vice Lisa R. Hood reports that during the two years before the Petition Date, the Company received income from employment and the operations of its business: Year Source Amount ---- ------ ------------ 01/01/09 - 09/30/09 Interstate Access Revenue $53,163,133 Intrastate Access Revenue 3,135,434 Local Service Revenue 65,141,702 Long Distance Revenue 8,694,588 Miscellaneous Revenue 6,907,477 01/01/08 - 12/31/08 Interstate Access Revenue $56,784,264 Intrastate Access Revenue 0 Local Service Revenue 78,414,864 Long Distance Revenue 10,903,088 Miscellaneous Revenue 7,604,651 01/01/07 - 12/31/07 ---- $0 TOCOVT also earned income from sources other than the operation of its business two years immediately before the Petition Date: Year Source Amount ---- ---------- ----------- 01/01/09 - 09/30/09 Other Income $51,091 Dividend Income 13,789 01/01/08 - 12/31/08 Other Income 160,029 Dividend Income 10,013 01/01/07 - 12/01/07 Other Income 0 Dividend Income 0 The Company didn't make any payments to creditors or insiders in the 90-day period before it filed for bankruptcy. Ms. Hood discloses that within one year immediately preceding the Petition Date, TOCOVT was or is a party to these lawsuits and administrative proceedings: Case Name Court --------- ----- Company Selection Process not American Arbitration by Contract - Local 2326 Association Global Naps, Inc. v. Tocovt Vermont Public Service Board Posted Pay Rate Changed After Job American Arbitration Awarded-IBEW Local 2326 Association The Company gave gifts or donations, totaling $191,608, to charitable institutions a year immediately before the Petition Date. A detailed list of the donations is available for free at: http://bankrupt.com/misc/TOCV_SOFA_7.pdf TOCOVT closed three accounts at BNY Mellon for the period from March to October 2009. The Company also received two environmental-related notices from the U.S. Environmental Protection Agency and the State of Vermont Department of Environmental Conservation on instances of groundwater and soil contamination. The Company's books and records, within two years immediately preceding the Petition Date, were kept or supervised by: Name Period ---- ------ Alfred Giammarino Sept. 2008 to present Lisa R. Hood Aug. 2008 to Sept. 2008 John Crowley Oct. 2007 to Aug. 2008 In the two years immediately preceding the Petition Date, TOCOVT's books of accounts and records were audited by the firms KMPG LLP and Ernst & Young LLP. During the commencement of TOCOVT's bankruptcy cases, its books of accounts and records were in the possession of Alfred Giammarino, chief financial officer and Lisa R. Hood, corporate controller. Other Debtors' Schedules Debtor Assets Liabilities ------ ------------ ----------- BE Mobile Communications, Inc. $36,340 $39,387 Bentleyville Communications Corporation $5,928,856 ($96,365) Berkshire Cable Corp. $1,480,376 $7,956 Berkshire Cellular, Inc. $0 ($3,983) Berkshire Net, Inc. $0 $0 Berkshire New York Access, Inc. $0 $0 Berkshire Telephone Corp. $7,063,645 ($1,000,744) Big Sandy Telecom, Inc. $819,383 ($177,725) Bluestem Telephone Company $1,121,553 $5,568 C & E Communications, LTD. $166,462 ($176,947) C-R Communications, Inc. $0 ($242) C-R Long Distance, Inc. $2,866 $22,312 C-R Telephone Company $1,017,223 $36,571 Chautauqua & Erie Communications, Inc. $68,663 $24,233 Chautauqua and Erie Telephone Corporation $9,753,967 $444,033 China Telephone Company $2,410,008 ($121,389) Chouteau Telephone Company $6,358,250 $225,842 Columbine Telecom Company $2,891,737 ($170,916) Comerco, Inc. $21,011 ($847) Commtel Communications Inc. $0 ($167) Community Service Telephone Co. $6,377,840 ($261,054) El Paso Long Distance Company $4,285 $11,579 Ellensburg Telephone Company $16,936,152 $2,076,128 Elltel Long Distance Corp. $68,123 ($30,115) Enhanced Communications of Northern New England Inc. $6,516,548 $14,601,713 ExOp of Missouri, Inc. $7,607,182 $403,285 FairPoint Broadband, Inc . $360,983 $44,605 FairPoint Carrier Services Inc $3,218,542 ($3,159,944) FairPoint Communications Missouri, Inc. $19,334,659 $812,210 FairPoint Communications Solutions Corp. - New York $0 $0 FairPoint Communications Solutions Corp. - Virginia $0 $0 FairPoint Logistics, Inc. $73,063,924 $53,741,370 FairPoint Vermont, Inc. $4,697,121 ($12,700) Fremont Broadband, LLC $0 $0 Fremont Telcom Co. $5,772,094 $365,015 Fretel Communications, LLC $1,428,893 $61,015 Germantown Long Distance Company $8,551 $27,928 GIT-CELL, Inc. $0 $0 GITCO Sales, Inc. $0 $0 GTC Communications, Inc. $0 ($442) GTC Finance Corporation $0 $0 GTC, Inc. $68,302,097 ($9,505,211) Maine Telephone Company $5,279,066 ($447,875) Marianna And Scenery Hill Telephone Company $1,662,495 $107,844 Marianna Tel, Inc. $55,639 $14,291 MJD Services Corp. $0 $230 MJD Ventures, Inc. $0 $694 Northland Telephone Company of Maine, Inc. $10,986,862 $475,363 Odin Telephone Exchange, Inc. $2,327,811 ($62,621) Orwell Communications, Inc. $754,838 $1,216 Peoples Mutual Long Distance Company $52,200 ($34,397) Peoples Mutual Services Co. $0 $0 Peoples Mutual Telephone Co. $6,647,103 $718,343 Quality One Technologies Inc. $1,530,562 $36,245 Ravenswood Communications Inc. $0 $506 Sidney Telephone Company $674,230 ($39,807) ST Computer Resources, Inc. $0 $0 ST Enterprises, LTD. $448,109 ($36,100) ST Long Distance, Inc. $60,883 $145,268 ST. Joe Communications, Inc. $282,416 $11,940,422 Standish Telephone Company $8,282,044 $406,931 Sunflower Telephone Company, Inc. $2,074,516 $618,994 Taconic Technology Corp. $2,025,593 ($300,580) Taconic Telcom Corp. $291,385 $100,807 Taconic Telephone Corp. $22,652,348 $1,844,814 Telephone Operating Company of Vermont LLC $407,155,316 ($1,971,259) Telephone Service Company $0 $0 The Columbus Grove Telephone Company $1,321,476 ($270,883) The Germantown Independent Telephone Company $4,316,740 ($16,673) The Orwell Telephone Company $5,414,430 $216,907 UI Communications, Inc. $0 $0 UI Long Distance, Inc. $443,306 $386,691 UI Telecom, Inc. $0 $0 Unite Communications Systems, Inc. $0 $0 Utilities, Inc. $3,297,099 $865,450 Yates City Telephone Company $0 $80 YCOM Networks, Inc. $14,073,747 $248,812 About FairPoint Communications FairPoint Communications, Inc. (NYSE: FRP) -- http://www.fairpoint.com/-- is an industry leading provider of communications services to communities across the country. FairPoint owns and operates local exchange companies in 18 states offering advanced communications with a personal touch, including local and long distance voice, data, Internet, television and broadband services. FairPoint is traded on the New York Stock Exchange under the symbols FRP and FRP.BC. Fairpoint and its affiliates filed for Chapter 11 on Oct. 26, 2009 (Bankr. S.D.N.Y. Case No. 09-16335). Rothschild Inc. is acting as financial advisor for the Company; AlixPartners, LLP as the restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP is the Company's counsel. BMC Group is claims and notice agent. As of June 30, 2009, Fairpoint reported $3.24 billion in total assets, $321.41 million in total current liabilities, $2.91 billion in total long-term liabilities, and $1.23 million in total stockholders' equity. Bankruptcy Creditors' Service, Inc., publishes Fairpoint Communications Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Fairpoint Communications Inc. and its debtor- affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) FAIRPOINT COMMS: Keeley Stake Down to 0.001% -------------------------------------------- In a Schedule 13G filing with the U.S. Securities and Exchange Commission dated February 5, 2010, Keeley Asset Management Corp. reported that it is deemed to beneficially own 1,000 shares of FairPoint Communications common stock. Keeley's FairPoint stocks constitute 0.001% of the Company's shares outstanding. As of October 31, 2009, FairPoint had 90,015,551 shares outstanding. Keeley is an investment company registered under Section 8 of the Investment Company Act of 1940. Keeley is also an Investment Adviser in accordance with Section 240.13d-1(b)(1)(ii)(E) of the Investment Advisers Act of 1940, as amended. About FairPoint Communications FairPoint Communications, Inc. (NYSE: FRP) -- http://www.fairpoint.com/-- is an industry leading provider of communications services to communities across the country. FairPoint owns and operates local exchange companies in 18 states offering advanced communications with a personal touch, including local and long distance voice, data, Internet, television and broadband services. FairPoint is traded on the New York Stock Exchange under the symbols FRP and FRP.BC. Fairpoint and its affiliates filed for Chapter 11 on Oct. 26, 2009 (Bankr. S.D.N.Y. Case No. 09-16335). Rothschild Inc. is acting as financial advisor for the Company; AlixPartners, LLP as the restructuring advisor; and Paul, Hastings, Janofsky & Walker LLP is the Company's counsel. BMC Group is claims and notice agent. As of June 30, 2009, Fairpoint reported $3.24 billion in total assets, $321.41 million in total current liabilities, $2.91 billion in total long-term liabilities, and $1.23 million in total stockholders' equity. Bankruptcy Creditors' Service, Inc., publishes Fairpoint Communications Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Fairpoint Communications Inc. and its debtor- affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) FENTURA FINANCIAL: Losses Prompt Going Concern Doubt ---------------------------------------------------- On March 18, 2010, Fentura Financial, Inc., filed its annual report on Form 10-K for the year ended December 31, 2009. Crowe Horwath LLP, in Grand Rapids, Mich., expressed substantial doubt about the bank holding company's ability to continue as a going concern. The independent auditors noted that the Company incurred net losses in 2009 and 2008, primarily from higher provisions for loan losses. The Company reported a net loss of $17.0 million for the year ended December 31, 2009, compared to a net loss of $12.2 million for the year ended December 31, 2008. Net interest income after provision for loan losses was $840,000 in 2009, as compared to $8.8 million in 2008. The Company's balance sheet as of Dec. 31, 2009, showed $522.1 million in assets, $501.5 million of debts, and $20.5 million of stockholders' equity. At December 31, 2009, the Company had net loans receivable of roughly $344.7 million and deposits of roughly $440.8 million. A full-text copy of the Company's annual report is available for free at http://researcharchives.com/t/s?5b5a Fentura Financial, Inc. is a bank holding company headquartered in Fenton, Michigan that owns three subsidiary banks. The Company's subsidiary banks operate 16 community banking offices offering a full range of banking services principally to individuals, small businesses, and government entities throughout mid-Michigan and western Michigan. FORD MOTOR: Bank Debt Trades at 3% Off in Secondary Market ---------------------------------------------------------- Participations in a syndicated loan under which Ford Motor Co. is a borrower traded in the secondary market at 96.68 cents-on-the- dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 1.26 percentage points from the previous week, The Journal relates. The Company pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on Dec. 15, 2013, and carries Moody's Ba3 rating and Standard & Poor's B- rating. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles across six continents. With about 200,000 employees and about 90 plants worldwide, the company's automotive brands include Ford, Lincoln, Mercury and Volvo. The company provides financial services through Ford Motor Credit Company. The Company's balance sheet as of Dec. 31, 2009, showed $194.9 billion in assets and $201.4 billion of debts, for a stockholders' deficit of $6.5 billion. Ford Motor carries a 'B2' probability of default and corporate ratings from Moody's. Moody's last raised the rating from 'B3' to 'B2' mid-March 2010. FREMONT GENERAL: Funds Accused of Vote Manipulation --------------------------------------------------- Bankruptcy Law360 reports that New World Acquisition LLC, a Fremont General Corp. creditor that has proposed a reorganization plan for the Company, has asked a bankruptcy judge to block a group of funds from changing its vote on a rival plan proposed by Fremont's equity holders from "reject" to "accept." The U.S. Bankruptcy Court for Central District of California has approved for voting five separate and competing plans of reorganization for Fremont. The five plan proponents are: -- The Creditors Committee; -- The Equity Committee; -- New World Acquisition, LLC; -- Ranch Capital, LLC; and -- Signature Group Holdings LLC Fremont is not prosecuting its own chapter 11 plan. Each of the five plans proposes to effect a merger between Fremont and certain of its subsidiaries, which will need to be approved by the Bankruptcy Court. Each of the plans proposes to treat the holders of Fremont's 7.875% Senior Notes due 2009, the holders of general unsecured claims against Fremont, the holders of the 9% Trust Originated Preferred Securities issued by Fremont General Financing I, the holders of claims subordinated under Section 510(b) of the Bankruptcy Code, and the holders of Fremont's common stock in different fashions. The five rival plans contemplate full payment of general unsecured claims and retention of equity interests. A full-text copy of the Information Cover Letter sent to voting creditors and a comparison of the competing plans is available at no charge at http://bankrupt.com/misc/FremontPlanComparison.pdf About Fremont General Based in Santa Monica, California, Fremont General Corp. (OTC: FMNTQ) -- http://www.fremontgeneral.com/-- was a financial services holding company with $8.8 billion in total assets at September 30, 2007. Fremont General ceased being a financial services holding company on July 25, 2008, when its wholly owned bank subsidiary, Fremont Reorganizing Corporation (f/k/a Fremont Investment & Loan) completed the sale of its assets, including all of its 22 branches, and 100% of its $5.2 billion of deposits to CapitalSource Bank. Fremont General filed for Chapter 11 protection on June 18, 2008, (Bankr. C.D. Calif. Case No. 08-13421). Robert W. Jones, Esq., and J. Maxwell Tucker, Esq., at Patton Boggs LLP, Theodore Stolman, Esq., Scott H. Yun, Esq., and Whitman L. Holt, Esq., at Stutman Treister & Glatt, represent the Debtor as counsel. Kurtzman Carson Consultants LLC is the Debtor's noticing agent and claims processor. Lee R. Bogdanoff, Esq., Jonathan S. Shenson, Esq., and Brian M. Metcalf, at Klee, Tuchin, Bogdanoff & Stern LLP, represent the Official Committee of Unsecured Creditors as counsel. Fremont's formal schedules showed $330,036,435 in total assets and $326,560,878 in total debts. GENERAL MOTORS: Proposes Plante & Moran as Accountants ------------------------------------------------------ Motors Liquidation Co. and its units seek authority from Judge Robert Gerber of the U.S. Bankruptcy Court for the Southern District of New York to employ Plante & Moran, PLLC, to perform certain accounting and consulting services in the Debtors' cases on an "as requested" basis, nunc pro tunc to October 9, 2009. According to Harvey R. Miller, Esq., at Weil, Gotshal & Manges LLP, in New York, P&M is a well respected and experienced professional accounting firm that possesses extensive accounting, tax, and consulting expertise. Accordingly, Mr. Miller says, P&M is well-qualified to act as the Debtors' accountant and consultant. Pursuant to an engagement letter between Motors Liquidation Company and P&M dated March 17, 2010, P&M will: (a) provide various tax services for MLC, including preparing tax returns and providing tax planning and consulting services relating to the transition of tax filing responsibilities from New GM to MLC and relating to ongoing operations and transitions; (b) provide consulting and other services relating to MLC's internal controls, including evaluation of the current system, and implementing procedures to test the effectiveness of those controls; and (c) provide other financial, tax, and related assistance, which services may range from financial staffing assistance to information technology assistance. P&M will not formally audit any of the Debtors, Mr. Miller notes. According to Mr. Miller, P&M will be compensated based on these hourly rates: Professional Hourly Rate ------------ ----------- Partner $300-$450 Associate $150-$350 Staff $80-$200 Paraprofessional and Admin $75-$125 The Debtors will also reimburse P&M for reasonable out-of-pocket expenses. Michael A. Colella, a partner at P&M, contends that his firm is a "disinterested person," as that term is defined in Section 101(14) of the Bankruptcy Code. About General Motors General Motors Company -- http://www.gm.com/-- is one of the world's largest automakers, tracing its roots back to 1908. With its global headquarters in Detroit, GM employs 209,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM acquired its operations from General Motors Company, n/k/a Motors Liquidation Company, on July 10, 2009, pursuant to a sale under Section 363 of the Bankruptcy Code. Motors Liquidation or Old GM is the subject of a pending Chapter 11 reorganization case before the U.S. Bankruptcy Court for the Southern District of New York. At September 30, 2009, GM had US$107.45 billion in total assets against US$135.60 billion in total liabilities. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). General Motors changed its name to Motors Liquidation Co. following the sale of its key assets to a company 60.8% owned by the U.S. Government. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL MOTORS: Court OKs Hilco and Maynard as Sales Agents ----------------------------------------------------------- The Bankruptcy Court has authorized Motors Liquidation Co. and its units to retain and employ Hilco Industrial, LLC, and Maynards Industries (1991) Inc., as their exclusive sales and marketing agents with respect to certain machinery, equipment and other assets that are owned or leased by Motors Liquidation Company, nunc pro tunc to the October 1, 2009. Judge Gerber permitted Hilco/Maynards to receive compensation for their services pursuant to the compensation structure set forth in the Asset Marketing Agreement dated November 12, 2009 between Hilco/Maynards and MLC, without filing interim or final fee applications. Hilco/Maynards will also file with the Court a quarterly notice of compensation beginning with the quarterly period March 2010 through May 2010, listing any Base Commission, Buyer's Premium and expenses, as defined in the AMA. Objections to the compensation in the Quarterly Notice must be filed within 14 days of the filing of the Notice. The Base Commission and Buyer's Premium listed in the Quarterly Notice will be reviewed under the standards of Section 328(a) of the Bankruptcy Code, while the Expenses will be reviewed under Section 330. Any notice of sale of the Debtors' de minimis assets involving the services of Hilco/Maynards must disclose the amount of Hilco/Maynards' Base Commission and Buyer's Premium for that Asset Sale, the Court ruled. The Court directs MLC to indemnify and hold Hilco/Maynards harmless from any claims, causes of action, damages and liabilities of any kind arising from or in connection with: (i) MLC's breach of any of its representations, warranties or covenants under the AMA; or (ii) any inaccurate statements or representations concerning the Assets made by MLC to Hilco/Maynards or any prospective buyer. In turn, Hilco/Maynards will also indemnify MLC from any and all liabilities arising out of, or based upon, Hilco/Maynards' breach of any representations, warranties or covenants under the AMA. J. Malfitano Files Supplemental Affidavit In a separate filing, Joseph A. Malfitano, vice president and assistant general counsel of Hilco Trading LLC, submitted with the Court a supplemental affidavit in support of the Debtors' application for the employment of Hilco Industrial LLC and Maynards Industries (1991) Inc. as Exclusive Marketing and Sales Agents to the Debtors nunc pro tunc to October 1, 2009. He disclosed that: -- Hilco is duly licensed and is authorized to conduct auctions in accordance with the Asset Marketing Agreement. Hilco is a leading international industrial auctioneer and liquidator specializing in valuing and converting idle capital equipment into cash through a multitude of creative sales methodologies and disposition channels. -- The Debtors and Hilco have agreed that in exchange for services rendered by the Company in connection with the sale of the assets as set forth in the AMA, the Debtors will compensate Hilco in accordance with the AMA. -- The compensation structure set forth in the AMA is reasonable and represents rates that are comparable or below market based on prevailing market standards. In addition, Hilco believes that the compensation structure provides an appropriate incentive for Hilco to establish a streamline platform for the Debtors to maximize the value of their assets. About General Motors General Motors Company -- http://www.gm.com/-- is one of the world's largest automakers, tracing its roots back to 1908. With its global headquarters in Detroit, GM employs 209,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM acquired its operations from General Motors Company, n/k/a Motors Liquidation Company, on July 10, 2009, pursuant to a sale under Section 363 of the Bankruptcy Code. Motors Liquidation or Old GM is the subject of a pending Chapter 11 reorganization case before the U.S. Bankruptcy Court for the Southern District of New York. At September 30, 2009, GM had US$107.45 billion in total assets against US$135.60 billion in total liabilities. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). General Motors changed its name to Motors Liquidation Co. following the sale of its key assets to a company 60.8% owned by the U.S. Government. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL MOTORS: Great American as Appraiser Approved by Court ------------------------------------------------------------- General Motors Corp., now known as Motors Liquidation Co., and its units received the Court's authority to employ Great American Group Advisory & Valuation Services, L.L.C., as their appraiser for certain real property locations, nunc pro tunc to February 22, 2010. Pursuant to an Engagement Letter, Great American will prepare appraisals of the land, improvements, and fixtures, and prepare an appraisal report for each of these 32 locations: (1) 340 White River Parkway, in Indianapolis, Indiana (2) 7600 General Motors Boulevard in Shreveport, Louisiana (3) 2627 West Grand Blvd., in Detroit, Michigan (4) 12950 Eckles Road in Livonia, Michigan (5) 2100 S Opdyke Road in Pontiac, Michigan (6) 13000 Eckles Road in Livonia, Michigan (7) 2000 Centerpoint Parkway in Pontiac, Michigan (8) 660 South Boulevard East in Pontiac, Michigan (9) 2930 Ecorse Road in Ypsilanti, Michigan (10) 37350 Ecorse Road in Romulus, Michigan (11) 900 Baldwin Avenue in Pontiac, Michigan (12) 4002 James Cole Blvd. in Flint, Michigan (13) 900 Baldwin Avenue in Pontiac, Michigan (14) 902 E Hamilton Avenue in Flint, Michigan (15) 12200 Middlebelt in Livonia, Michigan (16) 300 36th Street SW in Wyoming, Michigan (17) 902 East Hamilton Avenue in Flint, Michigan (18) 10800 S. Saginaw Road in Flint, Michigan (19) 2800-2801 West Saginaw St. in Lansing Township, Michigan (20) 2901 South Canal Road in Lansing, Michigan (21) 200 South Boulevard West in Pontiac, Michigan (22) 675 Oakland Avenue in Pontiac, Michigan (23) 1445 Parkway Avenue in Ewing, New Jersey (24) One General Motors Circle in Syracuse, New York (25) Factory Road in Syracuse, New York (26) Route 37 East in Massena, New York (27) 1829 Hallock Young Road in Lordstown, Ohio (28) 3100 Dryden Road in Moraine, Ohio (29) 2525 West Fourth Street in Mansfield, Ohio (30) 2601 West Stroop Road in Moraine, Ohio (31) 5400 Chevrolet Boulevard in Parma, Ohio (32) 11032 Tidewater Trail in Fredericksburg, Virginia Each Report will include valuations of the Properties based on cost, sales, and income approaches to valuation, as well as a liquidation value based on an immediate sale under distressed conditions. Great American will be paid $3,500 per Report and reimbursed for reasonable travel expenses. The Fees and Expenses will be due and payable upon completion and delivery of the Report for each Property. If Great American's consultants or advisors are called to give testimony or appear before a court or regulatory body or agency regarding the Reports, Great American will be paid (i) $2,000 per day plus reasonable travel expenses for each day of actual court testimony, and (ii) $240 per hour plus reasonable travel expenses for depositions, pretrial hearings, or meetings. As appraiser, Great American will assist the Debtors in obtaining market valuations and disposition valuations of the Properties to appropriate market the Properties or otherwise determine how to appropriately dispose of them, Harvey R. Miller, Esq., at Weil, Gotshal & Manges LLP, in New York, says. Lester Friedman, chief executive officer of Great American, assures Judge Gerber that his firm is a "disinterested person," as that term is defined in Section 101(14) of the Bankruptcy Code. About General Motors General Motors Company -- http://www.gm.com/-- is one of the world's largest automakers, tracing its roots back to 1908. With its global headquarters in Detroit, GM employs 209,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM acquired its operations from General Motors Company, n/k/a Motors Liquidation Company, on July 10, 2009, pursuant to a sale under Section 363 of the Bankruptcy Code. Motors Liquidation or Old GM is the subject of a pending Chapter 11 reorganization case before the U.S. Bankruptcy Court for the Southern District of New York. At September 30, 2009, GM had US$107.45 billion in total assets against US$135.60 billion in total liabilities. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). General Motors changed its name to Motors Liquidation Co. following the sale of its key assets to a company 60.8% owned by the U.S. Government. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GENERAL MOTORS: Trafelet Proposes Stutzman as Counsel ----------------------------------------------------- Dean M. Trafelet, in his capacity as proposed legal representative for future asbestos personal injury claimants against Motors Liquidation Co. and its units, asks Judge Robert Gerber's permission to employ Stutzman, Bromberg, Esserman & Plifka, A Professional Corporation, as his counsel, nunc pro tunc February 24, 2010. Mr. Trafelet avers that Stutzman is qualified to represent him in the Debtors' Chapter 11 cases because of the firm's extensive experience and knowledge in the field of corporate reorganization and debtors' and creditors' rights. In particular, SBEP has significant expertise in bankruptcy cases involving mass tort liabilities like the Debtors' cases, he adds. Mr. Trafelet specifies that Sander L. Esserman, Esq., president and a shareholder of Stutzman, was the court-appointed legal representative for future asbestos claimants in the administratively consolidated cases of, among others, National Gypsum Company and Aancor Holdings Company. Stutzman also serves as general counsel to numerous trusts established under Section 524(g) of the Bankruptcy Code. The firm also has considerable experience in general corporate, real estate, litigation and tax matters, says Mr. Trafelet. As counsel to Mr. Trafelet, Stutzman will: (1) advise the Future Claimants' Representative with respect to his rights and obligations as Future Claimants' Representative for the future claimants and regarding other matters of bankruptcy law; (2) take actions necessary to protect and maximize the value of the Debtors' estate for the purpose of making distributions to future claimants and to represent Mr. Trafelet in connection with negotiating, drafting, confirming and implementing a plan of reorganization, and performing other functions to effectively represent the interests of the Future Claimants; (3) prepare, on behalf Mr. Trafelet, necessary applications, motions, objections, answers, orders, reports and other legal papers in connection with the administration of the Chapter 11 cases; (4) represent the Future Claimants' Representative at any proceeding or hearing before the Bankruptcy Court and in any action in any other court where Future Claimants' rights or interests may be litigated or affected; and (5) perform other legal services and other support requested by Mr. Trafelet in connection with the Chapter 11 cases. Stutzman's professionals will be paid in accordance with these hourly rates: Professional Designation Hourly Rate ------------ ----------- ----------- Steven A. Felsenthal, Esq. Shareholder $725 Sander L. Esserman, Esq. Shareholder $725 Robert T. Brousseau, Esq. Shareholder $550 Peter C. D'Apice, Esq. Shareholder $525 David A. Klingler, Esq. Shareholder $425 Jacob L. Newton, Esq. Shareholder $425 Jo E. Hartwick, Esq. Shareholder $395 Andrea L. Ducayet, Esq. Shareholder $385 David J. Parsons, Esq. Associate $385 William LePage, Esq. Associate $375 Cliff I. Taylor, Esq. Associate $375 Terrie D. Khoshbin, Esq. Associate $325 Briana L. Cioni, Esq. Associate $300 Heather J. Panko, Esq. Associate $300 Rachael L. Stringer, Esq. Associate $250 Cindy L. Jeffery Paralegal $175 Heather Kennedy Paralegal $175 Rosalinda Guerra Paralegal $165 Melanie R. Fain Paralegal $95 Gina Silva Paralegal $95 The Stutzman Professionals will also be reimbursed for their out- of-pocket expenses. Mr. Esserman assures the Court that his firm is a "disinterested person" as that term is defined under Section 101(14) of the Bankruptcy Code. About General Motors General Motors Company -- http://www.gm.com/-- is one of the world's largest automakers, tracing its roots back to 1908. With its global headquarters in Detroit, GM employs 209,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM acquired its operations from General Motors Company, n/k/a Motors Liquidation Company, on July 10, 2009, pursuant to a sale under Section 363 of the Bankruptcy Code. Motors Liquidation or Old GM is the subject of a pending Chapter 11 reorganization case before the U.S. Bankruptcy Court for the Southern District of New York. At September 30, 2009, GM had US$107.45 billion in total assets against US$135.60 billion in total liabilities. About Motors Liquidation General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). General Motors changed its name to Motors Liquidation Co. following the sale of its key assets to a company 60.8% owned by the U.S. Government. The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, serves as the Chief Executive Officer for Motors Liquidation Company. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) GREATER GERMANTOWN: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: Greater Germantown Educational Development Corporation, Inc. 4807-15 Germantown Avenue Philadelphia, PA 19144 Bankruptcy Case No.: 10-12021 Chapter 11 Petition Date: March 18, 2010 Court: United States Bankruptcy Court Eastern District of Pennsylvania (Philadelphia) Judge: Chief Judge Stephen Raslavich Debtor's Counsel: Albert A. Ciardi, III, Esq. Ciardi Ciardi & Astin, P.C. One Commerce Square 2005 Market Street, Suite 1930 Philadelphia, PA 19103 Tel: (215) 557-3550 Fax: (215) 557-3551 Email: aciardi@ciardilaw.com Holly Elizabeth Smith, Esq. Ciardi Ciardi & Astin 2005 Market Street, Suite 1930 Philadelphia, PA 19103 Tel: (215) 557-3550 Email: hsmith@ciardilaw.com Thomas Daniel Bielli, Esq. Ciardi Ciardi & Astin, P.C. One Commerce Square 2005 Market Street, Suite 1930 Philadelphia, PA 19103 Tel: (215) 557-3550 Fax: (215) 557-3551 Email: tbielli@ciardilaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its 20 largest unsecured creditors when it filed its petition. The petition was signed by Bruce L. Tabbs, president of the Company. GRUPO SENDA: Fitch Affirms Issuer Default Ratings at 'B-' --------------------------------------------------------- Fitch Ratings has affirmed Grupo Senda Autotransporte, S.A., de C.V.'s local and foreign currency Issuer Default Ratings and its US$150 million senior secured guaranteed notes due in 2015 at 'B-' and 'B-/RR4', respectively. Fitch also has removed Grupo Senda's ratings from Rating Watch Negative and assigned a Stable Outlook to all ratings. The rating action results from the turnaround in the company's operating and financial performance beginning in the second half of 2009 (2H'09) as well as the improving business and economic environment in Mexico. Grupo Senda is expected to continue to benefit from the improvement in the Mexican economy, which is expected to grow 4% during 2010 after a contraction of 6.5% during 2009, which should further improve its operational performance and cash flow generation. Higher operating profits over the next several quarters should further reduce the company's still high financial leverage. Recent positive operating trends coupled with improving market conditions have help lower the high refinancing risks faced by the company during late 2008 and the 1H'09. Grupo Senda's ratings reflect the company's leading market position in the highly competitive and fragmented intercity bus passenger transportation in Mexico, and limited financial flexibility resulting from its high financial leverage and weak liquidity. The ratings also incorporate industry-related risks such as seasonal fluctuations in passengers, cyclicality risk affecting the personnel segment, and volatile fuel costs. Positively, the company benefits from the importance of bus transportation within Mexico that results from income constraints that limit the ability of many people to use more expensive alternative means of transportation such as automobiles or airlines. Grupo Senda is exposed to foreign exchange risks as 90% of its revenues are in Mexican pesos and most of its debt is denominated in U.S. dollars. Turnaround Beginning To Take Hold: Grupo Senda's cash flow generation, measured by EBITDA, began trending positive during the 2H'09. EBITDA for the first, second, third, and fourth quarters of 2009 reached levels of MXN81 million, MXN94 million, MXN167 million, and MXN187 million, respectively. EBITDA improvement was driven by tariff increases of approximately 20% in the 2H'09 and resulted in margins of over 20% during the 2H'09. For the year ending December 2009, EBITDA total MXN528 million, which positively compares with the company's latest 12 months EBITDA of MXN435 million ending June 2009; EBITDA in fiscal 2009 was still 14% and 28% below EBITDA levels reached during fiscal 2008 and 2007, respectively. In addition to stronger fares, Grupo Senda rationalized several of its routes, which helped boost financial results; operating margins per bus decreased from MXN9,000 in the fourth quarter 2008 (4Q'08) to MXN -2,700, and MXN2,000 in the 1Q'09 and 2Q'09, respectively, then increasing to MXN31,700 and MXN32,900 during the 3Q'09 and 4Q'09, respectively. The company's operating margin per kilometer was MXN1.0 and MXN1.2 during the 3Q'09 and 4Q'09, respectively. These levels compare favorably with those reached during the 1Q'09 and 2Q'09, MXN -0.1/km and MXN0.1/km, respectively. Liquidity Remains Weak: Grupo Senda's cash position remains weak and it would continue to have a high dependency on third parties to cover its liquidity position as well as roll over short-term debt. As of Dec. 31, 2009, Grupo Senda had MXN146 million of consolidated cash and marketable securities and MXN375 million of short-term debt, including MXN60 million in used credit lines. The company's financial strategy is to continue rolling over its short-term debt, while trying to achieve a major refinancing, which would allow the company to reduce the debt payments due in 2010 and 2011 of MXN375 million and MXN365 million, respectively. Historically, the company's cash position has been low relative to short-term debt. The company's liquidity position, measured by the ratio of cash to short-term debt was 0.39 times (x) by the end of December 2009, which negatively compares to the levels the company reached by the end of December 2007 and December 2008, 0.76x and 0.44x, respectively. By the end of December 2009, the company had unused uncommitted credit lines for a total amount of MXN160 million, as an alternative source of liquidity. Leverage Remains High: Grupo Senda's leverage is high. Recent trends in leverage mirror the sharp deterioration in the company's cash flow generation, measured by EBITDA, during the first two quarters of 2009 and its partial recovery towards the end of 2009. Grupo Senda's leverage, measured by total net debt/EBITDAR, increased to 5.5x as of Dec. 31, 2009, from 4.7x as of Dec. 31, 2008. Fitch expects the company to manage its balance sheet in the net-debt-to-EBITDAR ratio around 4.0x-5.0x range over the next two years. By the end of December 2009, on balance sheet debt totaled MXN2,968 million (US$227 million), which primarily consists of corporate bonds (MXN1,976 million or US$150 million), financial leases (MXN680 million or US$52 million), long-term facilities with local banks (MXN180 million or US$13.7 million); and used credit lines with local banks (MXN60 million or US$4.6 million). In addition, the company's rental expenses related to operating leases during 2009 totaled approximately MXN40 million. The company expects to reach similar levels of rental expenses during 2010. Business Strategy Adjusted: In mid-2009, Grupo Senda abandoned its business strategy of entering in new geographic areas with discounted prices to attract passenger volume and began to re-focusing on geographic areas that the company has a leading market share. This strategy allowed the company to help restore its fare structure to historical levels, and rationalize its route network, which finally resulted in the improvement of the company's operational results during the third and fourth quarters of 2009. In the short term, the company expects to continue to focus on increasing its fares and improving its operating margins. The company expects to increase fares in the 5%-10% range during 2010. In addition, the company is expanding its international service to the United States. Grupo Senda's international segment represented approximately 12.5% of its revenues during 2009, and the company expects this segment to grow to 15% to 20% of its revenues within the next few years. Grupo Senda is a holding company and a leading provider of interstate passenger bus transportation and package delivery services. The company provides service on over 250 main routes serving more than 1,000 destinations, in 15 Mexican states and Texas. Grupo Senda has a fleet of 2,511 buses, with an average fleet age of 6.5 years, and approximately 7,600 employees. The company's total number of passenger per year is approximately of 57 millions. Grupo Senda has two main business units: the Passenger and the Personnel business units, which represent approximately 80% and 20% of the company's total revenues, respectively; and, 70% and 30% of the company's EBITDA, respectively. HAGOOD RESERVE: Files for Chapter 11 Bankruptcy in Charlotte ------------------------------------------------------------ The Charlotte Observer reports that Hagood Reserve has filed for Chapter 11 bankruptcy protection. Hagood listed assets and liabilities ranging from $1 million to $10 million. Creditors include Allen Tate & Associates, which is owed $500,000, and Mecklenburg County, which is owed $42,000. According to the report, Hagood Reserve was envisioned as a luxury condo and townhome community in south Charlotte. Hagood Reserve, however, has been embroiled in various lawsuits since its lender sued last year saying it was owed money. Construction, which began in 2008, stopped last year without any of the planned 36 units being built. The bankruptcy petition, filed in Charlotte, halts the foreclosure proceedings and civil lawsuits. HARI OM Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------- Debtor: Hari Om Limited Partnership 3093 Red Arrow Drive Las Vegas, CA 89135 Bankruptcy Case No.: 10-14347 Chapter 11 Petition Date: March 17, 2010 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Mike K. Nakagawa Debtor's Counsel: Jon T. Pearson, Esq. Ballard Spahr Llp 100 North City Parkway, Suite 1750 Las Vegas, NV 89106 Tel: (702) 868-7541 Fax: (702) 471-7070 Email: pearsonj@ballardspahr.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A list of the Company's 20 largest unsecured creditors is available for free at: http://bankrupt.com/misc/nvb10-14347.pdf The petition was signed by Kusum Desai, general partner of the company. Debtor-affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- Gastroenterology Center of Nevada, LLP 09-22776 7/17/09 Endoscopy Center of Southern Nevada, LLC 09-22780 7/17/09 Desert Shadow Endoscopy Center, LLC 09-22784 7/17/09 Spanish Hills Surgical Center, LLC 09-28397 9/30/09 SAI K, LLC 09-32044 11/23/09 Endoscopy Center of Southern Nevada II, LLC 10-10470 1/13/10 Desai, Dipak, M.D. 10-13050 3/09/10 HARMONY PARK: Files Schedules of Assets & Liabilities ----------------------------------------------------- Harmony Park LLC has filed with the U.S. Bankruptcy Court for the Southern District of Ohio its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $12,000,000 B. Personal Property $0 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $3,959,544 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $0 ----------- ----------- TOTAL $12,000,000 $3,959,544 North Bend, Ohio-based Harmony Park LLC filed for Chapter 11 bankruptcy protection on March 12, 2010 (Bankr. S.D. Ohio Case No. 10-11566). Charles M. Meyer, Esq., and Deepak K. Desai, Esq., at Santen & Hughes LPA, assist the Company in its restructuring effort. HARMONY PARK: Wants to Hire Santen & Hughes as Bankr. Counsel ------------------------------------------------------------- Harmony Park LLC has sought authorization from the U.S. Bankruptcy Court for the Southern District of Ohio to employ Santen & Hughes, LPA, as bankruptcy counsel. Santen & Hughes will, among other things: a. take necessary action to protect and preserve Debtor's estate, including the prosecution of actions on the Debtor's behalf, the defense of any actions commenced against the Debtor, the negotiations concerning litigation in which the Debtor is involved, and the objecting to claims filed against the estate; b. prepare motions, applications, answers, orders, reports, pleadings, notices, schedules and other documents in connection with the administration of the estate; c. negotiate and assist the Debtor in preparing a plan of reorganization, and all related documents; d. advise the Debtor and take part in the negotiation and documentation of potential transactions, financing agreements, debt restructuring, cash collateral orders and related transactions. Santen & Hughes will be paid based on the hourly rates of its personnel: Charles M. Meyer $360 Deepak K. Desai $250 Charles M. Meyer, a partner at Santen & Hughes, assures the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. North Bend, Ohio-based Harmony Park LLC filed for Chapter 11 bankruptcy protection on March 12, 2010 (Bankr. S.D. Ohio Case No. 10-11566). According to the schedules, the Company has assets of $12,000,000, and total debts of $3,959,544. HAWKER BEECHCRAFT: Bank Debt Trades at 19% Off in Secondary Market ------------------------------------------------------------------ Participations in a syndicated loan under which Hawker Beechcraft is a borrower traded in the secondary market at 81.43 cents-on- the-dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 3.71 percentage points from the previous week, The Journal relates. The Company pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on March 26, 2014, and carries Moody's Caa1 rating and Standard & Poor's CCC+ rating. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. As reported by the Troubled Company Reporter on Nov. 20, 2009, Moody's affirmed Hawker Beechcraft Acquisition Company LLC's Caa2 Corporate Family and Probability of Default ratings but lowered the rating on the company's senior secured bank obligations to Caa1 from B3 following announcement of plans to expand the size of its secured term loan. At the same time, ratings on Hawker Beechcraft's senior unsecured cash-pay and PIK election notes (Caa3) and subordinated notes (Ca) were affirmed. The company's Speculative Grade Liquidity rating was changed to SGL-4, designating weak liquidity, but is expected to improve once final amounts sourced from an incremental term loan are known. The outlook was revised to negative. The actions follow several developments: an amendment to the company's revolving credit facility reducing the size of the commitment and revising financial covenants, a proposed increase of $200 million to an existing $1,271 million term loan, disclosure of some $0.7 billion of non-cash impairment and other charges during the company's third quarter. On Nov. 19, 2009, the TCR stated that Standard & Poor's assigned its 'CCC+' issue-level rating to Hawker Beechcraft Acquisition Co. LLC's proposed $200 million incremental term loan, the same as the corporate credit rating on parent Hawker Beechcraft Inc., and a '4' recovery rating, which indicates S&P's expectation of average (30%-50%) recovery in a payment default scenario. In addition, S&P affirmed its 'CCC+' corporate credit rating on Wichita, Kansas-based Hawker Beechcraft. The company has about $2.15 billion of debt. HEALTH MANAGEMENT: Bank Debt Trades at 4% Off in Secondary Market ----------------------------------------------------------------- Participations in a syndicated loan under which Health Management Associates, Inc., is a borrower traded in the secondary market at 96.08 cents-on-the-dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.96 percentage points from the previous week, The Journal relates. The Company pays 175 basis points above LIBOR to borrow under the facility. The bank loan matures on Feb. 28, 2014, and carries Moody's B1 rating and Standard & Poor's BB- rating. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Headquartered in Naples, Florida, Health Management Associates, Inc., owns and operates acute-care hospitals in non-urban settings. The company provides inpatient services such as general surgery, and oncology as well as outpatient services such as laboratory, x-ray and physical therapy services. In addition, some facilities also offer specialty services such as cardiology, radiation therapy and MRI scanning. Health Management carries a 'B1' long term corporate and probability of default ratings, with stable outlook, from Moody's, a 'B+' issuer credit ratings, with negative outlook, from Standard & Poor's, and a 'B+' long term issuer default rating, with stable outlook, from Fitch. HERON LAKE BIOENERGY: Earns $2.6 Million in Q1 Ended January 31 --------------------------------------------------------------- Heron Lake BioEnergy, LLC, filed its quarterly report on Form 10- Q, showing net income of $2.6 million on $29.4 million of revenue for the three monhts ended January 31, 2010, compared with a net loss of $6.2 million on $18.1 million of revenue for the same period of 2009. The Company's balance sheet as of January 31, 2010, showed $113.4 million in assets, $71.5 million of debts, and $41.9 million of members' equity. The Company says that significant volatility in the commodity markets caused margins in the ethanol industry to be negative during portions of fiscal year 2009. The Company had net income of approximately $2.6 million in the quarter ended January 31, 2010, and used cash of approximately $1.3 million for operating activities. The Company incurred a loss of approximately $11.3 million and used cash of approximately $8.3 million for operating activities during the twelve months ended October 31, 2009. "At January 31, 2010, and October 31, 2009, the Company was out of compliance with covenants of its master loan agreement with AgStar Financial Services, PCA. In addition, the Company anticipates that one or more of the covenants will not be met as of October 31, 2010, and January 31, 2011, unless amended." "If AgStar exercises its right to accelerate the maturity of the debt outstanding under the master loan agreement or the line of credit, the Company will not have adequate available cash to repay the amounts currently outstanding at January 31, 2010. Further, while an event of default exists, the Company is not permitted to borrow additional funds under its line of credit or revolving term note without AgStar's consent. "These factors raise substantial doubt about the Company's ability to continue as a going concern." A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5b29 Heron Lake, Minn.-based Heron Lake BioEnergy, LLC was formed for the purpose of constructing and operating a dry mill corn-based ethanol plant near Heron Lake, Minnesota. The plant has a stated capacity to produce 50 million gallons of denatured fuel grade ethanol and 160,000 tons of dried distillers' grains per year. Production of ethanol and distillers' grains at the plant began in September 2007. HOG BROTHERS RECYCLING: Case Summary & 20 Largest Unsec. Creditors ------------------------------------------------------------------ Debtor: Hog Brothers Recycling, LLC 9607 Dearborn Ave. Detroit, MI 48208 Bankruptcy Case No.: 10-48733 Chapter 11 Petition Date: March 18, 2010 Court: United States Bankruptcy Court Eastern District of Michigan (Detroit) Judge: Phillip J. Shefferly Debtor's Counsel: Charles J. Taunt, Esq. 700 East Maple Road, Second Floor Birmingham, MI 48009-6359 Tel: (248) 644-7800 Email: cjtaunt@tauntlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company has assets of $1,130,700, and total debts of $9,375,628. A list of the Company's 20 largest unsecured creditors is available for free at: http://bankrupt.com/misc/mieb10-48733.pdf The petition was signed by Frank DeNardo Jr. HOME OWNERSHIP: Moody's Withdraws 'Ba2' Rating on Preferred Stock ----------------------------------------------------------------- Moody's Investors Service withdrew its rating on the cumulative step-down preferred stock of Home Ownership Funding Corporation I and II after affirming them at their Ba2 rating. HOFC is a real estate investment trust which is more than 99% owned by the Federal Home Loan Mortgage Corporation (Freddie Mac). Freddie Mac's ratings are unaffected by this action. Moody's has withdrawn these ratings because HOFC is being re-organized by Freddie Mac. Moody's last rating action on Home Ownership Funding Corporation I & II was on September 29, 2008, when Moody's downgraded the cumulative step-down preferred stock rating to Ba2 from Aa2. HOFC's ratings were assigned by evaluating factors Moody's believe are relevant to the credit profile of the issuer, such as the franchise value, risk positioning, operating and regulatory environment and financial fundamentals of the company versus others within its industry, as well as the projected performance of the company over the near to intermediate term. These attributes were compared against other issuers both within and outside of HOFC's core industry and HOFC's ratings are believed to be comparable to those of other issuers of similar credit risk. HPT DEVELOPMENT: Updated Case Summary with Creditors List --------------------------------------------------------- Debtor: HPT Development Corporation 8216 N. 62nd Place Paradise Valley, AZ 85253-2645 Bankruptcy Case No.: 10-06294 Chapter 11 Petition Date: March 10, 2010 Court: United States Bankruptcy Court District of Arizona (Phoenix) Judge: Sarah Sharer Curley Debtor's Counsel: D. Lamar Hawkins, Esq. Aiken Schenk Hawkins & Ricciardi PC 4742 North 24th Street, Suite 100 Phoenix, AZ 85016 Tel: (602) 248-8203 Fax: (602) 248-8840 Email: dlh@ashrlaw.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 A full-text copy of the Debtor's list of creditors is available for free at http://bankrupt.com/misc/azb10-06294.pdf HPT DEVELOPMENT: Section 341(a) Meeting Scheduled for April 13 -------------------------------------------------------------- The U.S. Trustee for Region 14 will convene a meeting of creditors in HPT Development Corporation's Chapter 11 case on April 13, 2010, at 11:30 a.m. The meeting will be held at the US Trustee Meeting Room, 230 N. First Avenue, Suite 102, Phoenix, AZ. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Paradise Valley, Arizona-based HPT Development Corporation filed for Chapter 11 bankruptcy protection on March 10, 2010 (Bankr. D. Ariz. Case No. 10-06294). D. Lamar Hawkins, Esq., at Aiken Schenk Hawkins & Ricciardi PC, assists the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. HPT DEVELOPMENT: Wants Aiken Schenk as Bankruptcy Counsel --------------------------------------------------------- HPT Development Corp. has sought permission from the U.S. Bankruptcy Court for the District of Arizona to employ Aiken Schenk Hawkins & Ricciardi P.C., as bankruptcy counsel. ASHR will, among other things: a. prepare pleadings and applications; b. conduct examinations incidental to administration; c. take necessary action incident to the proper preservation and administration of the Debtor's estate; and d. advise the Debtor in the formulation and presentation of a plan pursuant to Chapter 11 of the U.S. Bankruptcy Code, the disclosure statement and concerning any and all matters relating thereto. ASHR will be paid $130 to $440 per hour for its services. The Debtor assures the Court that ASHR is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Paradise Valley, Arizona-based HPT Development Corporation filed for Chapter 11 bankruptcy protection on March 10, 2010 (Bankr. D. Ariz. Case No. 10-06294). D. Lamar Hawkins, Esq., at Aiken Schenk Hawkins & Ricciardi PC, assists the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. HSH DELAWARE: Sees Creditors Being Paid in Full with Interest ------------------------------------------------------------- HSH Delaware GP LLC asked the U.S. Bankruptcy Court to deny the lenders' request for a Chapter 11 trustee to take over the bankrupt estate. HSH Delaware was formed in 2006 by J.C. Flowers & Co. to buy 26 percent of the German bank HSH Nordbank AG. According to Bill Rochelle at Bloomberg News, HSH said in papers filed with the Bankruptcy Court that it believes the interest in the German bank is worth enough to pay the lenders in full, with interest, while providing a "sizeable recovery for the debtors' equity holders." According to the report, just a month after the Chapter 11 filing, secured lenders including Royal Bank of Scotland NV filed a motion for the appointment of a Chapter 11 trustee. The lenders, owed $550 million, say HSH Delaware has no employees or operations and the banks' collateral is worth less than the debt. The lenders are also opposing financing that would come in ahead of the banks' liens. Financing would come from a J.C. Flowers affiliate. About HSH Delaware HSH Delaware GP LLC is based in Wilmington, Delaware. Nine HSH partnerships were created in 2006 to buy a 26% stake in HSH Nordbank AG, the world's largest shipping financier, from WestLB AG for about EUR1.25 billion ($1.76 billion). The partnerships received unsecured term and revolving loans of EUR375 million from ABN AMRO bank to fund the purchase of HSH Nordbank shares. As reported by the Troubled Company Reporter on September 9, 2009, creditors with claims aggregating $27.8 million filed a petition to send affiliate HSH Delaware LP to Chapter 7 liquidation (Bankr. D. Del. Case No. 09-13145). Commerzbank AG, Lloyds TSB Bank Plc, ABN Amro Bank NV, Calyon, Royal Bank of Scotland Plc and Landsbanki Islands HF filed the involuntary Chapter 7 petition. HSH Delaware filed for Chapter 11 bankruptcy protection on January 21, 2010 (Bankr. D. Delaware Case No. 10-10187). The Company listed $100,000,001 to $500,000,000 in assets and $100,000,001 to $500,000,000 in liabilities. HSH Delaware's affiliates -- HSH Delaware L.P.; HSH Luxembourg S.a.r.l.; HSH Luxembourg Coinvest S.a.r.l.; HSH Delaware GP LLC; HSH Alberta I L.P.; HSH Alberta II L.P.; HSH Alberta V L.P.; HSH Coinvest (Alberta) L.P.; JCF HSH (DE) GP LP; HSH Delaware L.P.; HSH Luxembourg S.a.r.l.; and HSH Luxembourg Coinvest S.a.r.l. -- also filed separate Chapter 11 petitions. John Henry Knight, Esq.; Lee E. Kaufman, Esq.; Mark D. Collins, Esq.; and Robert J. Stearn Jr., Esq., assist the Debtors in their restructuring effort. The Debtors' Canadian Counsel is McCarthy Tetrault LLP. The Debtors' Chief Restructuring Officer is H Ronald Weissman. INTERNATIONAL LEASE: Fitch Rates $2 Bil. Senior Notes at 'BB' ------------------------------------------------------------- Fitch Ratings expects to rate International Lease Finance Corp's planned issuance of $2 billion of unsecured senior notes 'BB'. Maturity of the debt is evenly divided between 5.5 and 7 years. Fitch has also assigned a 'BBB-' rating to the $750 million secured term loan which closed yesterday. The rating for the term loan is two notches above ILFC's Issuer Default Rating of 'BB' and is consistent with the rating that Fitch indicated it would assign in a release dated March 1, 2010. All of ILFC's ratings remain on Rating Watch Negative. Fitch notes that the company's recent actions to issue $1.3 billion of secured debt and $2 billion of unsecured debt are consistent with their overall financing plans to generate liquidity to repay near-term maturing debt obligations. Fitch recognizes that these actions demonstrate renewed access to credit markets and represent positive momentum toward resolving near-term liquidity requirements and reducing the need for further AIG support and financing currently being provided by the Federal Reserve. Resolution of the Rating Watch Negative status remains contingent upon ILFC's ability to continue to generate sufficient liquidity through aircraft sales, extension or amendment of the current bank facilities, and procurement of third-party debt financing to meet substantial near-term funding requirements and to minimize the likelihood for further support from AIG. A primary rating concern is that AIG's willingness to extend support to ILFC may be more limited than previously assumed and may not extend beyond ILFC's efforts to restructure and generate sufficient liquidity to meet forthcoming maturing debt obligations. Furthermore, ILFC's ability to reshape its funding platform to provide a cost-efficient funding mix to support its business model without subordinating current unsecured creditors is also a primary rating concern. Although Fitch continues to believe the volume of unencumbered aircraft currently remains adequate to support repayment of existing unsecured debt, significant further encumbrance of the aircraft portfolio, either via indirect government support or third-party secured financing may result in subordination of existing unsecured creditors. The recent issuances indicate early progress toward ILFC being able to prevent secured financing from increasing to a point where senior unsecured creditors become notably subordinated. As of Dec. 31, 2009, near-term debt maturities were substantial and equal $14.4 billion in total over the next two years. Also, the $3.9 billion loan provided by the Federal Reserve Bank of New York to AIG Funding and guaranteed by ILFC matures in 2013. Thus, given the still considerable level of maturing debt, ILFC will need to demonstrate more progress with funding efforts before the risk of senior unsecured being notched below the IDR can be eliminated. Additionally, the negative impact of higher overall funding costs and the corresponding effect on underlying profitability and cash flow represents a secondary concern. I/OMAGIC CORP: Simon & Edward Raises Going Concern Doubt -------------------------------------------------------- On March 19, 2010, I/OMagic Corporation filed its annual report on Form 10-K for the year ended December 31, 2009. Simon & Edward, LLP, in City of Industry, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that of the Company's significant operating losses, serious liquidity concerns and need for additional financing in the foreseeable future. The Company reported net income of $407,156 on $10.3 million of revenue for the year ended December 31, 2009, compared to a net loss of $4.3 million on revenue of $13.4 million for 2008. The Company's balance sheet as of Dec. 31, 2009, showed $3.2 million in assets and $5.0 million of debts, for a stockholders' deficit of $1.8 million. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5b54 Irvine, Calif.-based I/OMagic Corporation sells electronic storage products and other consumer electronics products in the North American retail marketplace, which includes the United States and Canada. IMPERIAL INDUSTRIES: Posts $5.3 Million Net Loss in 2009 -------------------------------------------------------- Imperial Industries, Inc., filed its annual report on Form 10-K, showing a net loss of $5.3 million on $8.6 million of revenue for the year ended December 31, 2009, compared with a net loss of $6.7 million on $10.0 million revenue for 2008. Net sales for the fourth quarter ended December 31, 2009, were $1.8 million, compared with $2.3 million for the same period in 2008. Net loss for the three months ended December 31, 2009, was $1.1 million, compared to a net loss of $2.1 million for the same period in 2008. In a press release Friday, S. Daniel Ponce, Imperial's Chairman of the Board, stated: "2009 presented many challenges to our Company and we expect the business environment in 2010 to continue to be a difficult period characterized by low demand for the Company's products due to the adverse economic conditions prevalent in the construction industry and in particular the Company's primary trade area of Florida. In response to the current economic landscape and an anticipated on-going lower product demand for our products, our management has focused its efforts on cost reduction initiatives, customer satisfaction and other cost control measures within our control, taking steps to restructure our business in line with existing market conditions. The closure of the Just- Rite distribution facilities and discontinuance of its operations on June 11, 2009, eliminated our Company's need to provide funding to support losses from these discontinued operations." Mr. Ponce continued, "We are currently seeking a new commercial lender to replace our existing lender and to increase the amount of our line of credit to generate additional liquidity for our continuing operations and enable us to pursue a geographic expansion of our trade area. We are hopeful all of our initiatives will prove successful and enable us to navigate through this prolonged industry downturn until economic conditions improve." The Company's balance sheet as of Dec. 31, 2009, showed $8.1 million in assets, $8.0 million of debts, and $115,000 of stockholders' equity. Grant Thornton LLP, in Fort Lauderdale, Fla., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that Company has experienced a significant reduction in its sales volume. In addition, the independent auditors sayd that for the year ended December 31, 2009, the Company has a loss from continuing operations of roughly $1.2 million and is operating under a forbearance arrangement with its primary lender, which is set to expire on April 30, 2010. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5b2e A full-text copy of the press release is available for free at: http://researcharchives.com/t/s?5b2f Pompano Beach, Fla.-based Imperial Industries, Inc. (OTC BB: IPII) -- http://www.imperialindustries.com/-- manufactures and distributes stucco, plaster and roofing products to building materials dealers, contractors and others through its subsidiary, Premix-Marbletite Manufacturing Co. The Company sells its products primarily in the State of Florida and to a certain extent the rest of the Southeastern United States. INNOVATIVE CONSULTING: Case Summary & 20 Largest Unsec. Creditors ----------------------------------------------------------------- Debtor: Innovative Consulting Group, Inc. 2817 Industrial Avenue P.O. Box 73 Altoona, PA 16603 Bankruptcy Case No.: 10-70294 Chapter 11 Petition Date: March 19, 2010 Court: United States Bankruptcy Court Western District of Pennsylvania (Johnstown) Debtor's Counsel: James R. Walsh, Esq. Spence Custer Saylor Wolfe & Rose 400 U.S. Bank Building P.O. Box 280 Johnstown, PA 15907 Tel: (814) 536-0735 Fax: (814) 539-1423 Email: jwalsh@spencecuster.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A full-text copy of the Debtor's petition, including a list of its 20 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/pawb10-70294.pdf The petition was signed by Gabriel L. Pellegrini, president of the Company. IPS CORP: S&P Changes Outlook to Stable, Affirms 'B' Rating ----------------------------------------------------------- Standard & Poor's Ratings Services revised its rating outlook on Compton, Calif.-based IPS Corp. to stable from negative. At the same time, S&P affirmed its ratings on the company, including the 'B' corporate credit rating. "The outlook revision reflects S&P's expectation that the company's operating performance and liquidity profile will likely improve modestly over the next 12 months because of stabilizing residential construction and expanding international sales," said Standard & Poor's credit analyst Thomas Nadramia. In addition, S&P's forecast expects total leverage (excluding its paid-in-kind [PIK] preferred stock) to improve to below 5x by the end of 2010, a level S&P would consider to be in line with the 'B' rating. Furthermore, the company has improved its liquidity profile with healthy levels of cash balances relative to its near-term requirements and full availability under its $20 million revolving credit facility. The stable rating outlook reflects S&P's expectation that IPS will continue to produce positive cash flow despite challenging residential and commercial construction end markets due to its good operating margins, recently reduced operating costs, and greater penetration into international markets. S&P expects an improvement in the company's leverage ratio to below 5x over the next several quarters as a result of improved EBITDA. Furthermore, S&P thinks liquidity, in terms of cash, availability under the revolving credit facility, and cash flow from operations will remain more than sufficient to service fixed charges of about $14 million (including cash interest expense, capital expenditures, and any required term loan amortization) over the intermediate term. Although unlikely in the near term, S&P could take a positive rating action if IPS experiences greater-than- expected growth in profitability because of a more robust recovery in residential construction and a material reduction in debt such that leverage would be maintained below 4x on a sustained basis, which could occur if EBITDA grew at a faster rate and the company dedicated excess cash flow to debt reduction. Conversely, S&P could lower the rating if the company doesn't remain cash flow positive, and leverage deteriorated and remained above 6x. S&P could also do so if interest coverage falls below 1.5x for a sustained period, which could occur if construction end markets fell further from current weak levels. ITRON INC: Moody's Affirms Corporate Family Rating at 'B1' ---------------------------------------------------------- Moody's Investors Service affirmed all ratings of Itron Inc. including the company's B1 corporate family, B1 probability of default and Ba3 senior secured ratings. Itron's ratings outlook was revised to positive from stable to reflect Moody's expectation that Itron's operating results may trend favorably through the near term, which could support ratings improvement. Rating Affirmations: -- Corporate Family Rating at B1 -- Probability of Default Rating at B1 -- Senior Secured Bank Credit Facility at Ba3 (to LGD3, 32% from LGD3, 35%) Outlook Actions: -- Changed to Positive From Stable Itron reduced debt by approximately $400 million in 2009 (down about 35% from 2008) through primary equity proceeds, debt to equity conversions (exchangeable notes) and free cash flow generation. This debt reduction enabled the company to sustain certain leverage metrics despite lower revenues and operating income resulting from weak economic conditions. After operating income experienced downward trends for the prior five quarters, modest growth was recorded in Q4/09 supported by increased shipments. With economic growth picking up, backlog levels increasing, and recent clarity over how Advanced Metering Infrastructure solutions qualify for Government stimulus funding, operating results are expected to improve through the rating horizon. This improvement should alleviate lingering bank facility covenant constraints, which persist as covenants tighten materially over the next few quarters. With key metrics already strong for Itron's B1 rating, continued improvement in profitability would support upwards rating action. Itron's B1 rating reflects the company's strong market position as one of the top three global metering companies. The rating also benefits from a certain level of operating stability provided by Itron's strong backlog level, good degree of recurring replacement revenues and its favorable geographic and customer diversification characteristics. Key constraints within Itron's rating include its singular industry focus and resulting exposure to the spending cycles of various utilities, which can be influenced by both the level of general economic activity and the pace at which technological change is adopted. Additionally, industry competition remains intense and may intensify further over time as the smart-grid evolves and non-traditional players potentially enter the market. The rating is additionally tempered by relatively short period of time over which operating results have demonstrated improving trends combined with the potential that the company may continue to operate with modest bank financial covenants headroom through the near term. The ratings may be considered for an upgrade should the company sustain adjusted Debt/EBITDA below 4.5x and free cash flow to debt in the low double digits. Sustained metrics associated with a downgrade would include Debt/EBITDA approaching 5.5x or EBITA/ Interest below 1.5x. Ratings pressure could also develop if the company's liquidity profile deteriorates from expected levels. Moody's last rating action was on March 19, 2007, when Moody's downgraded Itron's corporate family rating to B1 from Ba3. Headquartered in Liberty Lake, Washington, Itron is a leading provider of metering and related communication systems to electric, gas and water utilities globally. Revenues for 2009 totaled approximately $1.7 billion. JAYEL CORP: Taps Blair and Brady as Bankruptcy Counsel ------------------------------------------------------ Jayel Corp. has asked for permission from the U.S. Bankruptcy Court for the Western District of Arkansas to employ the law firm of Blair and Brady as bankruptcy counsel. Blair and Brady will, among other things: (a) advise the Debtor concerning and assisting in the negotiation and documentation of financing agreements, cash collateral order and related transactions; (b) investigate into the nature and validity of liens asserted against the property of the Debtor and advise the Debtor concerning the enforceability of said liens; (c) investigate into, advising the Debtor concerning, and taking the action as may be necessary to collect and, in accordance with applicable law, recover property for the benefit of the Debtor's estate; (d) prepare on behalf of the Debtor such applications, motions, pleadings, orders, notices, schedules and other documents as may be necessary and appropriate, and reviewing the financial and other reports to be filed herein. Blair and Brady will be paid based on the hourly rates of its personnel: Partners $180 Associates $100 Paralegals $45-$55 Donald A. Brady at Blair and Brady assures the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Bentonville, Arkansas-based Jayel Corporation filed for Chapter 11 bankruptcy protection on March 5, 2010 (Bankr. W.D. Ark. Case No. 10-71120). According to its schedules, the Company has $14,532,395 in assets and $9,317,149 in liabilities. JOHN MANEELY: Bank Debt Trades at 5% Off in Secondary Market ------------------------------------------------------------ Participations in a syndicated loan under which John Maneely Company is a borrower traded in the secondary market at 95.13 cents-on-the-dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.68 percentage points from the previous week, The Journal relates. The Company pays 325 basis points above LIBOR to borrow under the facility. The bank loan matures on Dec. 9, 2013, and carries Moody's B3 rating and Standard & Poor's B rating. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Headquartered in Beachwood, Ohio, John Maneely Company manufactures steel pipe, hollow structural steel, electrical conduit products and tubular products at ten manufacturing facilities in the U.S. and Canada. The Company is number one or two in its key product areas: HSS, standard pipe and electrical conduit. JMC also enjoys leading market positions in the galvanized mechanical tube and fittings markets. Its products are sold principally to plumbing and electrical distributors. JMC's parent, DBO Holdings, Inc., is approximately 55% owned by the Carlyle Partners IV, LP. KORLEY SEARS: Gets Okay to Close Sale of Property to West Central ----------------------------------------------------------------- Korley B. Sears sought and obtained authorization from the Hon. Thomas L. Saladino of the U.S. Bankruptcy Court for the District of Nebraska to complete and close the sale of property in Holt County Nebraska. The property includes Section 5 SW 1/4 and Section 6 S 1/2 S 1/2 N 1/2, all in Township 30, Range 14 West of the 6th P.M., and associated personal property (Korleys Holt County Irrigation Equipment). The interests of the Debtor's Chapter 11 estate in Korley's Holt County Real Property and Korley's Holt County Irrigation Equipment may encompass substantially all of the assets of the Chapter 11 estate. Korley's Holt County Real Property and Korley's Holt County Irrigation Equipment appear to be validly encumbered by a first priority lien and by a first priority security interest in favor of Commercial National Bank of Ainsworth (the Commercial National) securing valid debts. Before filing for bankruptcy, the Debtor had entered into a Liquidation Agreement with Commercial National to sell Korley's Holt County Real Property at public auction and to sell other property. The Debtor also entered into an Auction Agreement with TARD Inc., dba Waldo Realty, for the advertisement and sale at public auction of Korley's Holt County Real Property and Korley's Irrigation Equipment. In November 2009, Waldo Realty conducted a public auction of Korley's Holt County Real Property and of Korley's Holt County Irrigation Equipment. The highest bid came from West Central Land LLP, which offered $3,151,000. The Debtor and West Central then entered into a purchase agreement, an executor contract. West Central has made a 10% down payment(s) totaling $315,110. The Debtor's assets include ownership of 50% of AFY Inc. Before the auction, AFY had entered into a Debt Reduction and Forbearance Agreement with Farm Credit Services of America PCA and Farm Credit Services of America FLCA (collectively the Farm Credit) and with the Debtor, his father Robert A. Sears, and other entities which the Debtor and his father each had ownership interests of 50%. Farm Credit appears to have first priority liens and first priority security interests in the real and personal property of AFY securing valid debts. Much of the real property and personal property of AFY was offered for sale pursuant to the auction contract between AFY and Waldo Realty at the public auction, at the same time as Korley's Holt County Real Property was offered for sale. A purchase agreement between AFY and West Central was entered into by AFY and West Central. Commercial National will receive most of the proceeds from the sale of Korley's Holt County Real Property and Korley's Holt County Irrigation Equipment. The Debtor is authorized to assume and perform the Purchase Agreement between Debtor and West Central and the Auction Agreement with Waldo Realty. The Debtor is authorized to consent to the payment at closing of the sale transactions to allow the closing agent to make payment of the agreed costs of sale, including Waldo Realty's commission and charges, applicable real estate taxes, title insurance premia, customary closing costs; to distribute $353,778.73 to the Escrow Agent consistent with the Liquidation Agreement; to distribute an additional $10,400 to the escrow agent to pay quarterly fees to the United States Trustee Program for the current quarter, if the same are ultimately determined to be payable by Debtor; and to distribute to Commercial National the sum of $2,703,960.37 representing partial satisfaction of the secured claim of Commercial National. The balance of Commercial National's secured claim, $31,655.90 plus interest accruing after February 16, 2009, on the sum, will be secured by the funds held in an escrow account. The escrow account will be subject to the lien of Farm Credit, if any, junior in priority to the lien of Commercial National, representing proceeds of the sale of Korley's Holt County Irrigation Equipment. About Korley Sears Ainsworth, Nebraska-based Korley B. Sears filed for Chapter 11 bankruptcy protection on February 2, 2010 (Bankr. D. Neb. Case No. 10-40277). Jerrold L. Strasheim, Esq., who has an office in Omaha, Nebraska, assists the Company in its restructuring effort. The Company listed $1,000,001 to $10,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. KRAMERIA LLC: Case Summary & 1 Largest Unsecured Creditor --------------------------------------------------------- Debtor: Krameria LLC 22341 Tumbleweed Drive Canyon Lake, CA 92587 Bankruptcy Case No.: 10-17761 Chapter 11 Petition Date: March 19, 2010 Court: United States Bankruptcy Court Central District of California (Riverside) Judge: Catherine E. Bauer Debtor's Counsel: J. Dana Mitchellweiler, Esq. 4204 Riverwalk Parkway, Suite 250 Riverside, CA 92505 Tel: (951) 509-1355 Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company has assets of $4,000,000 and total debts of $7,511,404. The Debtor identified Franchise Tax Board with debt claim for $800 as its largest unsecured creditor. A full-text copy of the Debtor's petition, including a list of its largest unsecured creditor, is available for free at: http://bankrupt.com/misc/cacb10-17761.pdf The petition was signed by Mark Warmoth, manager of the Company. LEE ANTHONY ROSSI: Case Summary & 1 Largest Unsecured Creditor -------------------------------------------------------------- Debtor: Lee Anthony Rossi dba Rossi Dairy Produce, LLC 3208 WCR 49 Hudson, CO 80642 Bankruptcy Case No.: 10-15985 Chapter 11 Petition Date: March 19, 2010 Court: United States Bankruptcy Court District of Colorado (Denver) Judge: Michael E. Romero Debtor's Counsel: Lee M. Kutner, Esq. 303 E. 17th Ave., Ste. 500 Denver, CO 80203 Tel: (303) 832-2400 Email: lmk@kutnerlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company has assets of $1,206,675 and total debts of $1,958,000. The Debtor identified Summitbridge Credit Investments, LLC with debt claim for 755,000 ($1,200,000 secured) as its largest unsecured creditor. A list of the Company's largest unsecured creditor is available for free at: http://bankrupt.com/misc/cob10-15985.pdf The petition was signed by Lee Anthony Rossi. LENOX CONDOMINIUM: Files for Bankruptcy to Seek Loan Extension -------------------------------------------------------------- Amanda Fung at Crain's New York Business reports that Lenox Condominium filed for Chapter 11 bankruptcy with a $10 million mortgage on its unsold units due. The filing will allow the Company to negotiate with lender Capital One for a loan extension. Lenox Condominium owns a condominium in Harlem, New York. Lenox listed assets and debts of $10,000,001 to $50,000,000 in its bankruptcy petition. Robert R. Leinwand, Esq., at Robinson Brog Leinwand Greene Genovese, represents the Debtor. LESARRA ATTACHED: Section 341(a) Meeting Scheduled for April 19 --------------------------------------------------------------- The U.S. Trustee for Region 17 will convene a meeting of creditors in Lesarra Attached Homes, L.P's Chapter 11 case on April 19, 2010, at 2:00 p.m. The meeting will be held at 300 Booth Street, Room 2110, Reno, NV 89509. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Reno, Nevada-based Lesarra Attached Homes, L.P., filed for Chapter 11 bankruptcy protection on March 12, 2010 (Bankr. D. Nev. Case No. 10-50808). Stephen R. Harris, Esq., at Belding, Harris & Petroni, Ltd, assists the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. LESARRA ATTACHED: Taps Belding Harris as General Bankr. Counsel --------------------------------------------------------------- Lesarra Attached Homes, L.P., has asked for permission from the U.S. Bankruptcy Court for the District of Nevada to employ Belding, Harris & Petroni, Ltd., as general bankruptcy counsel. Belding Harris will, among other things: a. examine the preparation of records and reports as required by the U.S. Bankruptcy Code, the Federal Rules of Bankruptcy Procedure and the Local Bankruptcy Rules; b. prepare applications and proposed orders to be submitted to the Court; c. examine proofs of claim anticipated to be filed and the possible prosecution of objections to certain claims; and d. advise the Debtor and prepare documents in connection with the contemplated ongoing operation of the Debtor's business, if any. Belding Harris will be paid based on the hourly rates of its personnel: Stephen R. Harris $400 Chris D. Nichols $350 Gloria M. Petroni $375 Paraprofessional Services $195 The Debtor assures the Court that Belding Harris is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Reno, Nevada-based Lesarra Attached Homes, L.P., filed for Chapter 11 bankruptcy protection on March 12, 2010 (Bankr. D. Nev. Case No. 10-50808). Stephen R. Harris, Esq., at Belding, Harris & Petroni, Ltd, assists the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. LONGVIEW POWER: Moody's Downgrades Ratings on Senior Loan to 'B2' ----------------------------------------------------------------- Moody's Investors Service has downgraded the senior secured credit facilities of Longview Power, LLC, to B2 from Ba3. The outlook has been revised to negative. The downgrade reflects Moody's significantly weaker expectations for the project's financial performance relative to the time of the financing due to the significant deterioration in wholesale energy markets and a substantial increase in projected fuel supply costs. According to Moody's Senior Analyst Aaron Freedman, "Unless there is meaningful recovery in the energy market in which the project is located, Moody's believes Longview will be challenged to achieve 1.0x debt service coverage in 2011, its first year of operations, during which it is almost wholly exposed to the market." While a modest recovery is expected beyond that point, the project is likely to pay down significantly less debt over the term of its loan than was initially expected, which increases refinancing risk when the loan matures in 2014 The negative outlook considers that the project also faces a heightened risk that it will fail to achieve substantial completion by the guaranteed substantial completion date in March of 2011, which increases the possibility that there will be insufficient funds to complete the project and would reduce the project's first year cash flows even further. The outlook also considers Moody's view that the project will be further challenged to achieve its forecast operating parameters, particularly for its first year of operations, when new power projects often experience significant "shake down" problems. Failure to achieve projected plant heat rates, levels of electrical generation, or projected operating and maintenance expenses would result if further downward pressure on the project's financial performance. As a result of a sharp drop in electric demand due to the recession, peak period market implied heat rates were just 8,600 mmBtu/kWh in 2009, almost 20% below the sponsor's base case forecast for 2011 of 10,600, the project's first year of operations. While some recovery is anticipated by that time, it is likely to be relatively modest and actual heat rates are now expected to be well below initial projections. Off-peak implied market heat rates in 2009 were actually slightly higher than forecast, at 6,600 vs. 6,100, but this was because gas prices were so low that gas-fired units were displacing less-efficient coal units in the dispatch stack. The decline in gas prices is expected to have nearly as significant an effect on the project's financial performance as the drop in market heat rates. While Moody's expects some recovery in gas prices from 2009 levels, Moody's currently project that they will be nearly 25% lower in 2012 than the sponsor's initial forecast of $6.55/mmBtu, at approximately $5.00 (increasing to $5.50 in 2012). The project has entered into a gas hedge covering approximately 50% of its expected on-peak uncontracted generation between September 2011 and May 2014 in order to protect itself from downside risk related to gas prices. With a floor price of $5.75/mmBtu, however, the hedge does not provide much benefit in Moody's revised forecast, nor does it protect the project from deterioration in market heat rates. The impact of the deterioration in the energy market on the project has been exacerbated by a significant increase in the project's fuel costs. Due to a renegotiation of the coal supply contract pursuant to change in law provisions to accommodate increased production costs resulting from new, more stringent mining regulations, projected coal prices have increased to $47/ton ($20/MWh) in 2011 from $31.50/ton ($12/MWh). The project's competitively priced coal contract was considered to be one of its one of its primary competitive advantages and a key credit strength. While management maintains that the entire industry has been affected by these increased costs, Moody's believes that the impact has been proportionately more severe for the project. As a result of these developments, unless there is some recovery in energy markets, dark spreads are projected to fall to below $30/MWh from $61/MWh in the sponsor's original base case. Because energy payments under the project's 300 MW financially settled power purchase agreement do not commence until January 1, 2012, the project is wholly exposed to the merchant market in its first year of operations with the exception of approximately $33 million in estimated capacity revenues. (A portion of these are either fixed by the project's PPA and the price for the remaining capacity for the project's first two years of operation has already be determined by public auction.) Debt service coverage could drop from 2.4x to a low as 0.85x, assuming the project is able to achieve its operating expense forecast. Even if peak period heat rates improve to 9,600, debt service coverage could remain below 1.0x according to Moody's projections. However, Moody's believes the project is likely to encounter operating challenges as it goes through "shake down" in its first year of operations, which would reduce its output and efficiency and increase operating costs. Coverage could improve slightly to 1.2x in 2012 when the $55/MWh energy payments under the hedge commence. In addition, Moody's notes that the project terminated its long- term financial transmission rights contracts in 2008. Although this will save the project $15 million in annual operating costs, it will leave Longview exposed to a higher degree of concentration risk as well as basis risk under the PPA. While this was not a sufficient concern to change the rating in and off itself, it does expose the project to incremental risk and when taken in conjunction with other more recent developments, has helped contribute to the meaningful deterioration in credit quality. Construction is now scheduled to be substantially complete on March 6, 2011. This is over a month behind the previous target, though it remains a week prior to the guaranteed substantial completion date. Engineering and procurement were nearly 100% complete and construction was 75% complete as of March 8. Nevertheless, "the guaranteed substantial completion date of March 12, 2011, continues to be in serious jeopardy" according to the Independent Engineer. If substantial completion is delayed beyond the guaranteed substantial completion date, the EPC contractor may be liable to pay delay liquidated damages of $275,000 per day, which is expected to be sufficient to cover interest and all other ongoing fixed costs. However, Moody's believes that the contractor could seek to dispute any claims made against it for delay LDs. Moody's note that the contractor has filed numerous notices of potential force majeure that remain open and through which it might seek to justify attempts to dispute its obligation to pay LDs. That said, if the contractor fails to pay LDs in a timely manner, the project can draw on up to $40 million in letters of credit provided by the contractor until any such disputes are resolved. The project has $43 million in contingency funds remaining out of a total of $106 million ($74 million initial plus $32 million additional equity contribution). However, the construction budget relies upon $42 million in startup revenues and assumes an average energy price of $53/MWh. The project will be challenged to achieve this amount in light of current market conditions. To the extent that these revenues are lower than forecast, the remaining contingency will be reduced by a corresponding amount. As a result, while design is complete and there is a relatively small proportion of project costs that have yet to be incurred (a high proportion of which are already subject to fixed-price contracts), change orders could still result in increased costs for which the remaining contingency funds could be inadequate. The rating could be downgraded further unless the project is successfully completed on time and within budget and is able to achieve debt service coverage of at least 1.0x in its first year of operations, which would depend on a meaningful recovery of energy markets over the next two years. Given the negative outlook, the rating is unlikely to be upgraded in the near future but the outlook could stabilize if the project is completed on time and on budget and it is able to achieve coverage in excess of 1.0x in its first year of operations. The last rating action on the company was on February 7, 2007, when it was assigned a Ba3 rating. Longview Power, LLC, is a special purpose entity created to construct, own, and operate a 695MW coal-fired power plant to be located in Maidsville, WV, just south of the Pennsylvania border and approximately 70 miles south of Pittsburgh. The project is being sponsored by a fund managed by First Reserve, a private equity firm specializing in energy industry investments, and developed by GenPower, LLC. LOUIS AMBROSE THOMANN: Case Summary & 20 Largest Unsec. Creditors ----------------------------------------------------------------- Debtor: Louis Ambrose Thomann 120 East Jones Street Savannah, GA 31401 Bankruptcy Case No.: 10-40614 Chapter 11 Petition Date: March 19, 2010 Court: United States Bankruptcy Court Southern District of Georgia (Savannah) Debtor's Counsel: C. James McCallar, Jr., Esq. McCallar Law Firm P.O. Box 9026 Savannah, GA 31412 Tel: (912) 234-1215 Fax: (912) 236-7549 Email: mccallarlawfirm@aol.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A full-text copy of Mr. Thomann's petition, including a list of his 20 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/gasb10-40614.pdf The petition was signed by Mr. Thomann. MAGNA ENTERTAINMENT: CA Racing Board Balks at Disclosure Statement ------------------------------------------------------------------ California Horse Racing Board objected in the U.S. Bankruptcy Court for the District of Delaware to Magna Entertainment Corp.'s disclosure statement, arguing that the characterization by the Debtor that those entities designated by California statutes receive a portion of the pari-mutuel wagering pools are debts of unsecured creditors, according to Standardbread Canada. The Racing Board asserted that those monies were never property of the Debtor's estate instead it belongs to the entities entitled to receive them, report relates. Magna Entertainment and its units will seek approval on March 23 of the disclosure statement explaining their proposed plan of reorganization. Magna will be able to commence soliciting votes on, then seek confirmation of the Plan, following approval of the Disclosure Statement. MI Developments Inc. and the Official Committee of Unsecured Creditors of MEC serve as co-proponents of the Plan. The backbone of the Plan is a settlement of the lawsuit commenced by the Creditors Committee against, among others, MID and MEC. The Creditors Committee had commenced an adversary proceeding against MID Islandi sf., the Debtors' largest prepetition secured lender, MI Developments Inc., Magna Entertainment's controlling shareholder, and certain other third party defendants asserting, among other things, claims of fraudulent transfer, equitable subordination, recharacterization and breaches of fiduciary duty. The plan proponents have entered into a Support Agreement pursuant to which, among other things, MID and the Committee agreed to support the Plan and MEC agreed to seek approval of the Disclosure Statement in the Bankruptcy Court on or prior to March 31 and obtain confirmation of the Plan by the Bankruptcy Court on or prior to April 30. The Support Agreement may be terminated if, among other things, the Bankruptcy Court denies confirmation of the Plan. A copy of the Plan is available for free at: http://bankrupt.com/misc/Magna_Ch11Plan_Feb18.pdf A copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/Magna_DiscStatement_Feb18.pdf About Magna Entertainment Based in Aurora, Ontario, Magna Entertainment Corp. is North America's largest owner and operator of horse racetracks based on revenue. The Company develops, owns and operates horse racetracks and related pari-mutuel wagering operations, including off-track betting facilities. MEC also develops, owns and operates casinos in conjunction with its racetracks where permitted by law. MEC owns and operates AmTote International, Inc., a provider of totalisator services to the pari-mutuel industry, XpressBet(R), a national Internet and telephone account wagering system, as well as MagnaBet(TM) internationally. Pursuant to joint ventures, MEC has a 50% interest in HorseRacing TV(R), a 24-hour horse racing television network, and TrackNet Media Group LLC, a content management company formed for distribution of the full breadth of MEC's horse racing content. Following its failure to meet obligations to lenders led by PNC Bank, National Association, and Wells Fargo Bank, National Association, and controlling shareholder MI Developments Inc.'s decision not to provide further financial backing, Magna Entertainment Corp. and 24 affiliates filed for Chapter 11 on March 5, 2009 (Bankr. D. Del. Lead Case No. 09-10720). Marcia L. Goldstein, Esq., and Brian S. Rosen, Esq., at Weil, Gotshal & Manges LLP, have been engaged as bankruptcy counsel. Mark D. Collins, Esq., L. Katherine Good, Esq., and Maris J. Finnegan, Esq., at Richards, Layton & Finger, P.A., are the Debtors' local counsel. Miller Buckfire & Co. LLC is the Debtors' investment banker and financial advisor. Kurtzman Carson Consultants LLC is the claims and noticing agent for the Debtors. Magna Entertainment Corp. had total assets of $1.054 billion and total liabilities of $947.3 million based on unaudited consolidated financial statements as of December 31, 2008. MAMMOTH HENDERSON: Wants Access to Rents Securing U.S. Bank Loan ---------------------------------------------------------------- Mammoth Henderson II, LLC, asks the U.S. Bankruptcy Court for the Central District of California for authority to use rents generated by its primary asset -- a real property located at 2520- 2550 St. Rose Parkway, Henderson, Nevada. The Debtor needs money to operate its business and generate the funds to preserve the value of the real property for the benefit of all creditors. The real property rents are subject only to the security interest of U.S. Bank, N.A. The Debtor relates U.S. Bank did not commit in a stipulation for a postpetition cash collateral other than those requested for emergency expenses. The Debtor states that adequate protection exists when it uses cash collateral for its ordinary and necessary operating expenses so long as the value of the underlying collateral is maintained. A hearing on the requested cash collateral use will be held on April 21, 2010, at 2:00 p.m. at Ronald Reagan Federal Bldg., 411 W Fourth St., Courtroom 5D Santa Ana, California. About Mammoth Henderson II LLC San Juan Capistrano, California-based Mammoth Henderson II LLC filed for Chapter 11 bankruptcy protection on November 5, 2009 (Bankr. C.D. Calif. Case No. 09-22234). Thomas C. Corcovelos, Esq., who has an office in Manhattan Beach, California, assists the Company in its restructuring efforts. According to the schedules, the Company has assets of $24,002,100, and total debts of $20,895,296. MASSEY ENERGY: $960 Mil. Deal Won't Affect Moody's 'B1' Rating -------------------------------------------------------------- Moody's commented that Massey Energy Company's recently announced purchase of Cumberland Resources Corporation for $960 million has no immediate impact on the company's B1 corporate family rating. The rating outlook remains stable. MATERA RIDGE: Section 341(a) Meeting Scheduled for April 12 ----------------------------------------------------------- The U.S. Trustee for Region 17 will convene a meeting of creditors in Matera Ridge, LLC's Chapter 11 case on April 12, 2010, at 2:00 p.m. The meeting will be held at 300 Booth Street, Room 2110, Reno, NV 89509. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Reno, Nevada-based Matera Ridge, LLC, filed for Chapter 11 bankruptcy protection on March 10, 2010 (Bankr. D. Nev. Case No. 10-50749). Stephen R. Harris, Esq., at Belding, Harris & Petroni, LTD, assists the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. MEDICOR LTD: Panel Seeks Nod of Settlement with D&Os, Insurers -------------------------------------------------------------- BankruptcyData.com reports that MediCor's official committee of unsecured creditors filed with the U.S. Bankruptcy Court a motion seeking approval of an agreement with Company directors and officers, Carolina Casualty Co., RSUI Indemnity Co. and additional parties. According to the motion, the settlement stems from Founder Donald K. McGhan's allegedly improper use of funds resulting in the directors and officers of MediCor borrowing more money than they were able to afford, thereby damaging the Debtors and their estates. Under the settlement agreement, Carolina and RSUI is to pay a total of $4.5 million, a portion of which would go to the committee, a portion to a settlement fund for distribution to the class members and certain individual plaintiffs and a portion to be held in a trust to go towards defense cost incurred by the directors. About MediCor Ltd. Headquartered in North Las Vegas, Nevada, MediCor Ltd. -- http://www.medicorltd.com/-- manufactures and markets products primarily for aesthetic, plastic and reconstructive surgery and dermatology markets. The company and seven of its affiliates filed for Chapter 11 protection on June 29, 2007 (Bankr. D. Del. Lead Case No. 07-10877) to effectuate the orderly marketing and sale of their business. Dennis A. Meloro, Esq., and Victoria Watson Counihan, Esq., at Greenberg Traurig, LLP, represent the Debtors' as Delaware counsel. The Debtors engaged Alvarez & Marsal North America, LLC as their restructuring advisor. David W. Carickhoff, Jr., Esq., at Blank Rome LLP represents the Official Committee of Unsecured Creditors as counsel. In its schedules of assets and debts, MediCor Ltd. disclosed total assets of $96,553,019, and total debts of $158,137,507. MERUELO MADDUX: Seeks to Retain Kible Green as Financial Advisor ---------------------------------------------------------------- BankruptcyData.com reports that the official committee of unsecured creditors in Meruelo Maddux's cases filed a motion with the U.S. Bankruptcy Court seeking to retain Kible Green as financial advisor. The firm will charge the Debtors' estates at these rates: Steven J. Greet, president at $595, Jay Maddox, managing director, real estate at 495, Matt Covington, managing director, financial restructuring at 495, David Lauletta, managing consultant, real estate at 350, Nicolas Long, senior consultant, real estate at 250, other KGI consultants at 175 to 225 and other professionals at 90 to 150. Meruelo Maddux and its affiliates filed for Chapter 11 protection on March 26, 2009 (Bankr. C. D. Calif. Lead Case No. 09-13356). Aaron De Leest, Esq., John J. Bingham, Jr., Esq., and John N. Tedford, Esq., at Danning Gill Diamond & Kollitz, represent the Debtors in their restructuring efforts. Asa S. Hami, Esq., Tamar Kouyoumjian, Esq., and Victor A. Sahn, Esq., at SulmeyerKupetz, A Prof Corp, represent the official committee of unsecured creditors as counsel. The Debtors' financial condition as of December 31, 2008, showed estimated assets of $681,769,000 and estimated debts of $342,022,000. MESA AIR: Section 341 Creditors' Meeting Adjourned to April 16 -------------------------------------------------------------- The meeting of creditors of Mesa Air Group, Inc. and certain of its direct and indirect subsidiaries in these Chapter 11 cases, as debtors and debtors in possession, pursuant to Section 341 of the Bankruptcy Code has been adjourned from February 26, 2010, to April 16, 2010, at 2:00 p.m., as may be adjourned from time to time. The meeting will be held at the Office of the United States Trustee, at 80 Broad Street, 4th Floor, in New York. The Debtors' representatives, as specified in Rule 9001(5) of the Federal Rules of Bankruptcy Procedure, are required to appear at the meeting of creditors on the date and at the place set forth herein for the purpose of being examined under oath. Attendance by creditors at the meeting is welcomed, but not required. At the meeting, the creditors may examine the Debtors and transact other business as may properly come before the meeting. About Mesa Air Group Mesa currently operates 130 aircraft with approximately 700 daily system departures to 127 cities, 41 states, Canada, and Mexico. Mesa operates as Delta Connection, US Airways Express and United Express under contractual agreements with Delta Air Lines, US Airways and United Airlines, respectively, and independently as Mesa Airlines and go! Mokulele. This operation links Honolulu to the neighbor island airports of Hilo, Kahului, Kona and Lihue. The Company, founded by Larry and Janie Risley in New Mexico in 1982, has approximately 3,500 employees. Mesa Air Group Inc. and its units filed their Chapter 11 petitions Jan. 5 in New York (Bankr. S.D.N.Y. Case No. 10-10018), listing assets of $976 million against debt totaling $869 million as of Sept. 30, 2009. Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as local counsel. Imperial Capital LLC is the investment banker. Epiq Bankruptcy Solutions is claims and notice agent. Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Mesa Air Group Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000) MESA AIR: Wants Until March 26 to File Schedules and Statements --------------------------------------------------------------- Pursuant to Section 521 of the Bankruptcy Code and Rule 1007 of the Federal Rules of Bankruptcy Procedure, Mesa Air Group Inc. and its units seek extension of time through and including March 26, 2010, to file their (i) schedules of assets and liabilities, (ii) statements of financial affairs, and (iii) the first periodic financial reports of the value, operations and profitability of each entity that is not a publicly traded corporation or a debtor in a case under Chapter 11, and in which the estate holds a substantial or controlling interest pursuant to Rule 2015.3 of the Federal Rules of Bankruptcy Procedure. The Debtors previously obtained an extension of the deadline to file their Schedules on or before March 5, 2010, and their first Rule 2015.3 Report on the later of March 5, 2010, or five days before the first scheduled Section 341 meeting of creditors. However, the Debtors have not been able to complete by March 8, 2010, the preparation of the Schedules given the existence of more than 10,000 creditors, the complexity of their business, and the efforts necessary to comply with the requirements under Section 1110 of the Bankruptcy Code, Debra I. Grassgreen, Esq., at Pachulski Stang Ziehl & Jones LLP, in New York, says. The initial Section 341 Meeting was scheduled and held on February 26, 2010. Accordingly, the Rule 2015.3 Reports were due on March 5, 2010. The Section 314 Meeting has been continued to April 16, 2010, at 2:00 p.m. Since the commencement of their Chapter 11 cases, the Debtors have been engaged in compiling information from books, records, and documents relating to thousands of claims, assets, contracts and leases, Ms. Grassgreen relates. The information is voluminous and located in numerous places throughout the Debtors' organization, she tells the Court. At the same time, the Debtors' primary focus has been directed towards the evaluation of the fleet requirements of their current operations, which needed to be completed before the expiration of the 60-day stay provided under Section 1110. In these cases, the 60-day stay pursuant to Section 1110 expired on March 8, 2010, the first business day after the Schedules were due to be filed. During this period, the Debtors were assessing their various aircraft-related obligations for the purpose of making the appropriate election or entering into a stipulation pursuant to Section 1110(a) and (b) of the Bankruptcy Code before the expiration of the stay. The Debtors' analysis and negotiation of these stipulations required many of their employees to devote a substantial portion of their resources and time to complete this endeavor, Ms. Grassgreen tells the Court. The Debtors have negotiated and entered into 25 stipulations pursuant to Section 1110(b) with respect to 124 aircraft and 16 engines, she adds. To date, the Debtors have made substantial progress in their collection of the necessary information for the Schedules. However, the Debtors have not had sufficient time to review and finalize the Schedules, according to Ms. Grassgreen. The Debtors believe that a brief extension is necessary so that they can properly and accurately finalize the Schedules and Rule 2015.3 Reports. Ms. Grassgreen notes that the Office of the United States Trustee and the Official Committee of Unsecured Creditors have consented to the requested extension. About Mesa Air Group Mesa currently operates 130 aircraft with approximately 700 daily system departures to 127 cities, 41 states, Canada, and Mexico. Mesa operates as Delta Connection, US Airways Express and United Express under contractual agreements with Delta Air Lines, US Airways and United Airlines, respectively, and independently as Mesa Airlines and go! Mokulele. This operation links Honolulu to the neighbor island airports of Hilo, Kahului, Kona and Lihue. The Company, founded by Larry and Janie Risley in New Mexico in 1982, has approximately 3,500 employees. Mesa Air Group Inc. and its units filed their Chapter 11 petitions Jan. 5 in New York (Bankr. S.D.N.Y. Case No. 10-10018), listing assets of $976 million against debt totaling $869 million as of Sept. 30, 2009. Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as local counsel. Imperial Capital LLC is the investment banker. Epiq Bankruptcy Solutions is claims and notice agent. Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Mesa Air Group Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000) MESA AIR: Receives Final Nod for $15-Mil. Letter of Credit ---------------------------------------------------------- Mesa Air Group Inc. and its units received final approval from Judge Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York to enter into a new letter of credit facility totaling up to $15 million with Compass Bank. The Debtors also obtained authority to use cash collateral pledged to Compass Bank, grant adequate protection, and assume a prepetition purchasing card agreement with Compass Bank, and cure any defaults under the agreement. The Debtors ask the Court to modify the automatic stay to allow them to effectuate the agreements. In the ordinary course of their business, the Debtors are required to provide to third parties letters of credit to secure the Debtors' payment or performance of certain obligations, including workers' compensation obligations, obligations owed to municipalities, obligations associated with foreign operations, contractual or permit obligations, fuel and liquor taxes, airport obligations, and United States, Canadian or other custom requirements. Failure to provide, maintain or timely replace these letters of credit could jeopardize the Debtors' ability to conduct their operations, according to Maria A. Bove, Esq., at Pachulski Stang Ziehl & Jones LLP, in New York. Compass Bank provides the Debtors with letters of credit. To recall, on January 8, 2010, the Debtors filed their Motion for order authorizing them to continue and renew letters of credit and surety bond programs, pursuant to which they sought authority to, among other things, renew and obtain additional letters of credit under their existing program with Compass Bank. The Court recently granted the Continue LOC Motion. Mesa Air Group, Inc., Mesa Airlines, Inc., and Freedom Airlines, Inc., on the one hand, and Compass Bank, on the other hand, entered into a Second Amended and Restated Letter of Credit and Reimbursement Agreement dated March 9, 2009 -- Prepetition Credit Agreement -- pursuant to which, among other things, Compass Bank agreed to make available a Letter of Credit Facility to Mesa, Mesa Airlines and Freedom Airlines. The Debtors, in turn, agreed to reimburse Compass Bank for any draws on Letters of Credit pursuant to the Facility. The prepetition agreement with Compass Bank is expiring soon and the Bank has informed the Debtors that it will not issue new letters of credit without the certainty of a new postpetition agreement and validation of its prepetition debt. The obligations pursuant to the Prepetition Credit Agreement and certain other obligations are secured pursuant to, among other documents, a certain Second Amended and Restated Cash Collateral Account Agreement dated March 9, 2009. Purchasing Card Agreement In connection with their cash management system, the Debtors maintained certain depository accounts at Compass Bank before the Petition Date, and Mesa Airlines and Compass Bank are parties to a certain purchasing card agreement dated July 8, 2008, pursuant to which Compass Bank provides eight debit purchasing cards for use by the Debtors' employees to pay for business expenses. The Debtors are reconciling the unpaid prepetition amount owed under the Purchasing Card Agreement, and believe that the amount is less than $20,000. Pursuant to the Prepetition Cash Collateral Agreement, all obligations arising under the Purchasing Card Agreement are also secured by the Cash Collateral Account. Assumption of the Purchasing Card Agreement will enable the Debtors' employees to continue to pay for travel and other related expenses using the debit cards provided under the agreement. Moreover, the agreement is terminable by either party at any time upon written notice to the other party, according to Ms. Bove. The Debtors believe that there is little to no likelihood of any prejudice to the estates upon assumption of the Purchase Card Agreement. The cure amount necessary to assume the agreement is de minimis and Mesa Airlines will be able to perform under the agreement. Prepetition Collateral Among other things, Mesa, Mesa Airlines, Freedom Airlines and each of them, assigned, granted and transferred to Compass Bank a first-in-lien priority continuing security interest in all of the grantor's right, title and interest in and to, among other things, certain property, whether then owned or thereafter acquired. The "Grantor" are Mesa, Mesa Airlines and Freedom Airlines. The Prepetition Collateral include: (a) The "Cash Collateral Account" and all cash, checks, drafts, documents, certificates, passbooks, instruments and other amounts, if any, from time to time deposited or held -- whether by physical possession, book entry or otherwise -- in or evidencing the Cash Collateral Account, including all wire transfers made, or in the process of being made, and all other deposits, to the Cash Collateral Account; (b) All "Permitted Investments," including all investment property, certificates, instruments, and securities from time to time representing or evidencing the Permitted Investments and any account or accounts in which the Permitted Investments may be held by, or in the name of, Bank for or on behalf of Grantor; (c) All interest, cash, instruments and other property from time to time held -- whether by physical possession, book entry or otherwise -- in, received, receivable, or otherwise payable in respect of, or in exchange for, any or all of the foregoing; (d) All present and future accounts, contract rights, chattel paper -- whether tangible or electronic -- deposit accounts, documents, general intangibles, goods, instruments, investment property, letter of credit rights, letters of credit, money, supporting obligations -- in each case as such terms are defined in the UCC -- and any other rights and interests pertaining to any of the foregoing, all documents, instruments or passbooks now or hereafter evidencing the Cash Collateral Account, together with all replacements, substitutions, renewals, products or proceeds of any of the foregoing, and all powers, options, rights, privileges and immunities pertaining thereto -- including the right to make withdrawals therefrom; and (e) To the extent not covered by clauses (a), (b), (c) or (d) above, all products and proceeds as defined under the UCC of any or all of the foregoing of every type. Other than the amounts held in the Cash Collateral Account, Compass Bank and the Debtors agree that no Prepetition Collateral of the types listed above in (b) through (d) existed as of the Petition Date. To secure all of the Debtors' secured obligations to Compass Bank under the Prepetition Letter of Credit Agreement -- consisting of the Prepetition Credit Agreement, Prepetition Cash Collateral Agreement, along with any and all other related prior, contemporaneous and subsequent documents -- Compass Bank holds a first-in-lien priority properly perfected continuing security interest in and to the Cash Collateral Account by virtue of, among other things, (i) any and all of the Debtors' funds on deposit with Compass Bank being held in a segregated Cash Collateral Account, (ii) UCC Financing Statement filed on November 29, 2008, with the Office of the Nevada Secretary of State, Instrument No. 2008-030131-1, and (iii) UCC Financing Statement filed on March 16, 2009, with the Office of the Nevada Secretary of State, Instrument No. 2009-006488-8. Pursuant to the Prepetition Letter of Credit Agreement, any and all reimbursement obligations of Debtors to Compass Bank under the Prepetition Letter of Credit Agreement will bear interest from and including the date that Bank pays the applicable drawing under a letter of credit to and including the date of reimbursement for the drawing at a per annum rate equal to the prime rate, and upon the occurrence of an event of default, the Prime Rate plus an additional 3%. Letters of Credit As of the Petition date, 34 letters of credit issued by Compass Bank under the Prepetition Letter of Credit Agreement were outstanding in the aggregate amount of $11,904,719, as set forth at http://bankrupt.com/misc/Mesa_CompassLOC.pdf Of these letters of credit, one expired on January 31, 2010, one expires on February 6, 2010, and 12 expire on February 15, 2010. On January 6, 2010, Raytheon Aircraft Corporation notified Compass Bank that it would be drawing on a certain letter of credit issued to it by the Bank for the benefit of the Debtors in the amount of $903,990. The Raytheon Draw was appropriately tendered and paid for by Compass Bank on January 11. Pursuant to the Prepetition Letter of Credit Agreement, interest has been accruing on the amount of $903,990, plus $275 in fees, since January 11, 2010, at the rate of Prime Rate plus 3%, and will continue to accrue up to and including the date of reimbursement by the Debtors. On January 26, 2010, International Fidelity Co. notified Compass Bank that it would be drawing on the letter of credit issued to it by the Bank for the benefit of the Debtors in the amount of $200,000. The International Fidelity Draw was appropriately tendered and paid for by Compass Bank on January 29. Pursuant to the Prepetition Letter of Credit Agreement, interest has been accruing on the amount of $200,000, plus $275 in fees, since January 29, 2010, at the rate of Prime Rate plus 3%, and will continue to accrue up to and including the date of reimbursement by the Debtors. Proposed New LOC Facility Compass Bank is willing to make additional or replacement Letters of Credit available to Debtors on a postpetition basis on substantially similar terms as the Prepetition Letter of Credit Agreement. To ensure that no disruption occurs in the Debtors' business as a going concern, the Debtors and Compass Bank have agreed on the form of that certain Third Amended and Restated Letter of Credit and Reimbursement Agreement dated January 5, 2010 -- Postpetition Credit Agreement -- and that certain Third Amended and Restated Cash Collateral Account Agreement dated January 5, 2010 -- Postpetition Cash Collateral Agreement. The postpetition agreements are available at no charge at: * http://ResearchArchives.com/t/s?5119 * http://ResearchArchives.com/t/s?511a The salient terms of the Postpetition Credit Agreement include: (a) Mesa, Mesa Airlines and Freedom Airlines -- the Applicants -- will, at all times, maintain Collateral in an amount not less than the credit exposure. "Credit Exposure" means at any time of determination, the sum of (1) the undrawn stated amount of all Letters of Credit, plus (2) the unpaid amount of all Reimbursement Obligations, which means the obligations of the Applicants to reimburse for draws upon Letters of Credit. (b) The Applicants may request Compass Bank to reduce the Facility Amount of $15,000,000 in increments of $100,000, provided that (1) in no event will the Facility Amount be reduced below the Credit Exposure, (2) any reduction may only be made once in each fiscal quarter of the Applicants, (3) any reduction will be requested in a written notice and delivered to Compass Bank at least five business days before the effectiveness of the requested reduction, and (iv) once reduced, any subsequent increase to the Facility Amount will be subject to review and approval by Compass Bank in its sole and absolute discretion. (c) Each Mesa, Mesa Airlines and Freedom Airlines will be direct, primary and independent obligors, and neither will be deemed to be a guarantor, accommodation party or other person secondarily liable for the Obligations. (d) Except as approved by Compass Bank, in no event will any Letter of Credit be subject to reinstatement or increase. The Applicants acknowledge and agree that Compass Bank has not obligation whatsoever to extend the expiration date of any Letter of Credit and that the extension of the expiration date of one or more Letters of Credit will not in any way obligate Compass Bank to extend the expiration date of any other Letter of Credit. No Letter of Credit will have an expiration date later than 12 months from date of issuance. (e) The Applicants direct Compass Bank to make payments under the Letters of Credit in immediately available funds to the beneficiary thereunder. The beneficiary of the Letters of Credit may change the disbursement instructions by notice to Compass Bank. (f) All Reimbursement Obligations will bear interest from and including the date that Compass Bank pays the applicable drawing under a Letter of Credit to and including the date of reimbursement for the drawing by the Applicants at a per annum rate equal to the Prime Rate. The rate will change with each change in the Prime Rate. The interest will be immediately due and payable upon each demand by Compass Bank. If the Applicants reimburse Compass Bank on the same day the Bank pays the applicable drawing, no interest will be due as long as the payment is received as and when required. The charging or payment of the interest will not extend or waive the required payment of Reimbursement Obligations. All amounts due at a rate based upon the Prime Rate will be calculated on the basis of a 360-day year for the actual number of days elapsed. (g) Compass Bank will have no liability whatsoever to the Applicants or any other person as a result of any adverse change or deterioration in the financial condition of the Bank or as a result of any reduction of the credit rating applicable to indebtedness rated on the basis of the Bank's credit. (h) The Applicants will assume all risk of the acts, omissions, or misuse of the Letters of Credit by the beneficiary thereof. (i) The Applicants agree to pay Compass Bank certain fees, which will be earned by the Bank on the date due under the Credit Documents and will be non-refundable to the Applicants. * Letter of Credit Fee: Fee for the issuance of each Letter of Credit equal to 3/4 of 1%, or 0.75%, per annum of the face amount of the requested Letter of Credit, with a minimum fee of $300 per annum. * Drawing and Fronting Fees: The Applicants will also pay all standard drawing, amendment, assignment, and other administrative fees customarily charged by Compass Bank with respect to letters of credit. The Debtors seek to obtain postpetition letters of credit pursuant to the Postpetition Letter of Credit -- consisting of Postpetition Credit Agreement, Postpetition Cash Collateral Agreement, along with any and all related prior, contemporaneous and subsequent documents -- (i) on an interim basis, up to the amount necessary to renew letters of credit that have expired or will expire before the final hearing and (ii) on a final basis, up to $15,000,000. The Postpetition Letter of Credit Agreement will terminate on March 31, 2011. The Debtors also seek authority to use the Prepetition Collateral securing the Debtors' obligations under the Prepetition Letter of Credit Agreement to secure and pay their obligations under the Postpetition Letter of Credit Agreement. As security for the obligations, the Debtors ask the Court to grant in favor of Compass Bank of a perfected, valid, enforceable and non-avoidable postpetition senior liens upon, and security interests in, the Collateral. Without immediate renewal of the critical Letters of Credit, the Debtors' business operations will be severely harmed, to the detriment of the Debtors' creditors, employees and other parties- in-interest in these bankruptcy cases. The Debtors require the postpetition financing in order to continue their operations and to preserve value, Ms. Bove asserts. There is no form of financing readily available to the Debtors that would be an alternative to the Postpetition Letter of Credit Agreement on an unsecured basis or on substantially better terms, Ms. Bove tells the Court. Extraordinary Provisions Order No. M-274 of the United States Bankruptcy Court for the Southern District of New York requires the Debtors to highlight any "Extraordinary Provisions" included in a postpetition financing agreement. The proposed order contains certain provisions that may be considered extraordinary pursuant to the terms of the General Order, including: * Roll-Up: The Orders provide that all outstanding obligations under the Prepetition Letter of Credit Agreement will be obligations under the Postpetition Letter of Credit Agreement. To the extent that the Debtors' Reimbursement Obligations associated with the International Fidelity Draw, the Raytheon Draw, or any other postpetition draws on Letters of Credit issued prepetition, are prepetition obligations, then those obligations are granted administrative status under the Orders. * Termination of Automatic Stay. About Mesa Air Group Mesa currently operates 130 aircraft with approximately 700 daily system departures to 127 cities, 41 states, Canada, and Mexico. Mesa operates as Delta Connection, US Airways Express and United Express under contractual agreements with Delta Air Lines, US Airways and United Airlines, respectively, and independently as Mesa Airlines and go! Mokulele. This operation links Honolulu to the neighbor island airports of Hilo, Kahului, Kona and Lihue. The Company, founded by Larry and Janie Risley in New Mexico in 1982, has approximately 3,500 employees. Mesa Air Group Inc. and its units filed their Chapter 11 petitions Jan. 5 in New York (Bankr. S.D.N.Y. Case No. 10-10018), listing assets of $976 million against debt totaling $869 million as of Sept. 30, 2009. Richard M. Pachulski, Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, serve as local counsel. Imperial Capital LLC is the investment banker. Epiq Bankruptcy Solutions is claims and notice agent. Bankruptcy Creditors' Service, Inc., publishes Mesa Air Bankruptcy News. The newsletter tracks the Chapter 11 proceedings undertaken by Mesa Air Group Inc. and its units. (http://bankrupt.com/newsstand/or 215/945-7000) METRO-GOLDWYN-MAYER: Bank Debt Trades at 46% Off ------------------------------------------------ Participations in a syndicated loan under which Metro-Goldwyn- Mayer, Inc., is a borrower traded in the secondary market at 54.33 cents-on-the-dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents a drop of 5.31 percentage points from the previous week, The Journal relates. The Company pays 275 basis points above LIBOR to borrow under the facility, which matures on April 8, 2012. Moody's and Standard & Poor's do not rate the bank debt. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Metro-Goldwyn-Mayer, Inc., is an independent, privately held motion picture, television, home video, and theatrical production and Distribution Company. The Company owns the world's largest library of modern films, comprising approximately 4,000 titles, and over 10,400 episodes of television programming. An investor consortium, comprised of Providence Equity Partners, TPG Capital, Sony Corporation of America, Comcast Corporation, DLJ Merchant Banking Partners and Quadrangle Group, owns MGM. As reported by the Troubled Company Reporter on Sept. 30, 2009, The New York Post, citing multiple sources, said discussions between debt holders and equity owners on a restructuring of Metro-Goldwyn-Mayer's massive debt load have begun on a contentious note, with both sides threatening to force MGM into bankruptcy in order to gain leverage and extract better terms from the other. Bloomberg also said that MGM is in talks to skip interest payments and restructure $3.7 billion in bank loans. MGM asked creditors to waive $12 million monthly interest payments until Feb. 15, 2010. MGM MIRAGE: Moody's Affirms Corporate Family Rating at 'Caa1' ------------------------------------------------------------- Moody's Investors Service affirmed MGM MIRAGE's ratings, including its Caa1 Corporate Family Rating and raised the company's Speculative Grade Liquidity rating to SGL-3 from SGL-4. The rating outlook remains stable. The upgrade of the SGL rating reflects the modest improvement in MGM's liquidity profile and financial flexibility following the extension of approximately $4.4 billion (78%) of its $5.6 billion credit facility (to 2014 from 2010) and closing of its $845 million senior secured note offering. The note proceeds have been used to repay loans under its senior credit facility and to pay related fees and expenses. However, MGM still faces significant debt maturities over the next 2 years. Moody's expects the 2010 maturities to be covered by revolver availability, but that this availability will not be sufficient, in the absence of capital market transactions, to refinance the 2011 maturities. The SGL-3 rating could be downgraded if MGM does not address its 2011 debt maturities in the near-term. Moody's expects that MGM will have good headroom under its minimum EBITDA covenant. The senior secured note offering is secured by a mortgage on the MGM Grand Las Vegas hotel and casino, substantially all existing and future property of MGM Grand Hotel, LLC, and is expected to be secured by a pledge of the limited liability company interests in MGM Grand Hotel, LLC. Although MGM has a partially unencumbered asset base, the company has used up the allowed secured debt basket under its various debt instruments. Rating upgraded: MGM MIRAGE -- Speculative Grade Liquidity rating to SGL-3 from SGL-4 Ratings affirmed: MGM MIRAGE -- Corporate Family Rating at Caa1 -- Probability of Default Rating at Caa2 -- Senior unsecured notes at Caa1 (LGD 3, 42%) -- Senior subordinated at Caa3 (LGD 5, 85%) -- Senior secured notes at B1 (LGD 1, 3%) Mandalay Resort Group -- Senior unsecured notes at Caa1 (LGD 3, 42%) -- Senior subordinated at Caa3 (LGD 5, 85%) The last rating action for MGM occurred on March 9, 2010, when Moody's upgraded the company's ratings and assigned a rating to the company's new senior secured notes. MGM MIRAGE owns and operates casino and hotel properties throughout the US. The company also has a 50% interest in CityCenter Holdings, LLC, a mixed-use project on the Las Vegas Strip and a 50% interest in MGM Grand Paradise Macau, a hotel- casino resort in Macau S.A.R. MGM generates approximately $6.0 billion of net revenue annually. MICHAEL MILES OWENS: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------------ Joint Debtors: Michael Miles Owens dba Owens Express dba Owens Express Stores dba J&L Grocery & Produce dba Owens Mini Warehouses Kazan White aka Lynn Owens Owens PO Box 1161 Granite Falls, NC 28630 Bankruptcy Case No.: 10-50353 Chapter 11 Petition Date: March 19, 2010 Court: United States Bankruptcy Court Western District of North Carolina (Wilkesboro) Judge: J. Craig Whitley Debtors' Counsel: Jimmy R. Summerlin, Jr., Esq. Young, Morphis, Bach & Taylor, L.L.P. P.O. Drawer 2428 400 Second Ave., NW Hickory, NC 28603 Tel: (828) 322-4663 Fax: (828) 322-2023 Email: jimmys@hickorylaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A full-text copy of the Debtors' petition, including a list of their 20 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/ncwb10-50353.pdf The petition was signed by the Joint Debtors. MICHAELS STORES: Bank Debt Trades at 7% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Michaels Stores, Inc., is a borrower traded in the secondary market at 93.04 cents- on-the-dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 1.40 percentage points from the previous week, The Journal relates. The Company pays 225 basis points above LIBOR to borrow under the facility. The bank loan matures on Oct. 31, 2013, and carries Moody's B3 rating and Standard & Poor's B rating. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Headquartered in Irving, Texas, Michaels Stores, Inc., is the largest arts and crafts specialty retailer in North America. As of March 9, 2009, the Company operated 1,105 "Michaels" retail stores in the United States and Canada and 161 Aaron Brothers Stores. MIDWEST COMMERCIAL: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Midwest Commercial Investments, X, LLC 754 N. Sherman Dr. Indianapolis, IN 46201 Bankruptcy Case No.: 10-03544 Chapter 11 Petition Date: March 18, 2010 Court: United States Bankruptcy Court Southern District of Indiana (Indianapolis) Judge: James K. Coachys Debtor's Counsel: KC Cohen, Esq. 151 N Delaware St., Ste 1104 Indianapolis, IN 46204 Tel: (317) 715-1845 Fax: (317) 916-0406 Email: kc@esoft-legal.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 A full-text copy of the Debtor's petition, including a list of its 20 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/insb10-03544.pdf The petition was signed by Peter Dvorak, managing member of the Company. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Midwest Commercial Investments, 10-16788 11/16/09 VI, LLC NAVISTAR INTERNATIONAL: Fitch Corrects Senior Notes Rating to 'B' ----------------------------------------------------------------- Fitch Ratings has revised a release issued on March 17, 2010. It corrects the rating for the senior subordinated notes to 'B'. Fitch Ratings has revised Navistar International Corporation's and Navistar Financial Corp.'s Rating Outlooks to Positive from Negative and affirmed the companies' long-term Issuer Default Ratings at 'BB-'. The Outlook revisions are driven by improvement in the financial profile of NFC following the signing of an operating agreement with GE Capital and by NAV's financial performance in the past year. Historically, Fitch had concerns with NFC's funding, capitalization, and asset quality performance, but they have been eliminated or reduced with the new agreement with GECC. Fitch affirms these ratings: Navistar International Corp. -- IDR at 'BB-'; -- Senior unsecured notes at 'BB-'. -- Senior subordinated notes at 'B'. Navistar Financial Corp. -- IDR at 'BB-'; -- Senior unsecured bank lines at 'BB-'. The ratings cover approximately $1.8 billion of outstanding debt at NAV and $3.0 billion of outstanding debt at NFC as of Jan. 31, 2010. Due to NFC's close operating relationship and importance to the parent, its ratings are directly linked to those of the ultimate parent. The relationship is governed by the Master Intercompany Agreement, additionally there is a requirement referenced in the NFC credit agreement, requiring Navistar, Inc. and NAV to own 100% of NFC's equity at all times. The Positive Outlook reflects Fitch's assessment that rating upgrades may be warranted depending on performance in the next year. Many of Fitch's key concerns for the consolidated company will be reduced or eliminated by the GECC agreement. As the existing retail portfolio runs off, performance of the manufacturing operations will be the key driver of NAV's credit quality. Improvement of the company's ratings will be driven by the pace of the truck market's rebound, success of the company's exhaust gas recirculation emissions strategy, improvement in profitability and leverage metrics, and ability to continue to generate free cash flow on an annualized basis. Fitch expects top line growth at NAV this year but believes margins could contract as a smaller portion of its business comes from military sales. Free cash flow is likely to also decline this year as the company increases capital expenditures and pension contributions. Beyond 2010, profitable growth looks likely as truck markets rebound from trough levels. The rating affirmations reflect solid credit metrics for the 'BB-' category, adequate liquidity position, U.S. and Canada market share leadership in Class 6-8 trucks and school buses, competitive engine portfolio, strong North American distribution network, significant military business, and potential future success with several business initiatives including the Mahindra & Mahindra joint venture, Caterpillar joint venture, and Monaco RV business. The resolution of material accounting weaknesses also supports the ratings affirmations. Credit concerns include the continued weakness in the truck market (especially in the first half of 2010 with the adoption of new emissions standards), significant pension liabilities and cash pension contributions, uncertainly around the success of NAV's EGR emissions strategy and dependence on the North American market that contributed approximately 91% of the company's 2009 fiscal- year revenue. Litigation related to past financial restatements and accounting controls is also a concern. Fitch is also concerned with the UAW labor contract that expires at the end of September. NFC recently entered into an agreement with GECC to fund the retail portion of NFC's business. Fitch views the agreement with GECC as a positive as it will reduce funding and capital needs and will continue to allow NAV to offer retail financing to its customers. Additionally, GECC's funding capacity may allow NAV to obtain a greater share of fleet customers that under NFC alone could not always get the amount of funding that was needed and/or with competitive pricing and terms. GECC will begin NFC's retail funding on a go forward basis as early as the end of this month. Term of the agreement is three years renewed annually unless GECC or NFC gives a one-year advance notice of cancellation. GECC will bear the first loss up to 10% of the amount financed. NFC has a large market share of its wholesale financing business but only about 10% of its retail financing is done through NFC. NFC's retail portfolio at the end of its first quarter ending Jan.31, 2010 was $1.865 billion, and the majority of the portfolio will runoff over the next two to three years. NFC will retain control of its wholesale portfolio, primarily for floorplan financing. GECC has had a relationship since 1986 with NAV in Canada as the provider of wholesale, retail, lease and parts financing in that country. At the end of NAV's first quarter ending Jan. 31, 2010, Fitch calculates NAV had a liquidity position of approximately $669 million, consisting of $668 million of cash and equivalents and $190 million in aggregate credit facility capacity, less $189 million of current maturities of long-term debt. NAV's $200 million secured asset-backed credit facility due June 2012 has a $10 million liquidity block against it and has never been borrowed against. This bank revolver is subject to a borrowing base that could decrease the availability of the facility. Net manufacturing operations debt at the end of NAV's first quarter was $1.826 billion. This consisted of the company's $249 million of capital leases and sale/leaseback debt; $131 million of majority-owned dealership debt; $964 million 2021 senior unsecured notes; $461 million 2014 senior subordinated convertible notes; and $21 million of other debt. NAV's majority owned dealership debt is comprised of wholesale (floor plan) financing and also retail financing on lease and rental fleets for the Dealcor dealers NAV has an ownership interest in. Dealcor Dealerships that are sold assume the debt that is associated with them. Due to the expected tough first quarter comparison with last year, which benefited from the Ford settlement and more military business, NAV's leverage and coverage metrics have weakened from fiscal 2009. Fitch expects NAV's credit metrics to strengthen later in the year and into 2011 with the truck cycle rebound and newly awarded military contracts. NAV's LTM debt-to-EBITDA ratio as of its latest quarter was 3.4 times (x) compared to 2.5x in its 2009 fiscal year. The company's LTM EBITDA-to-interest coverage in its latest quarter decreased to 5.0x versus 7.9x in its 2009 fiscal year. NAV's LTM EBITDA margins have contracted to 4.9% compared to 7% in its 2009 fiscal year. Most major global truck markets including the U.S. are expected to rebound slowly in 2010 following a very deep trough. At the end of calendar year 2009, U.S. industry medium and heavy duty truck sales were down 55.4% (321,761 units) from their peak in 2006 at 581,194 units. In 2009, U.S. medium and heavy truck sales were down 29.6%. NAV is forecasting that the traditional U.S. and Canada Class 6 - 8 truck markets will expand approximately 7 to 18% in its current fiscal year to between 195,000 to 215,000 units, a range that Fitch believes is reasonable. Fitch expects North American medium and heavy duty sales to be stronger in the second half of the year. NFC has shown improved profitability metrics, as the company reported net income of $29 million for the year ending Oct. 31, 2009, versus a loss of $31 million for the comparable period in 2008. Improved profitability was driven by reduced borrowing costs. Asset quality has shown stabilization as delinquencies have declined slightly. Barring a dramatic increase in used truck inventory, Fitch would expect the current retail portfolio to decline and perform consistently with historical metrics. With the signing of the GECC deal and amortization of the current retail portfolio, Fitch sees substantially improved capitalization metrics versus historical levels. With the signing of the agreement with GECC, Fitch envisions NFC to become a diminishing factor in the overall ratings of NAV. Fitch expects NAV will be able to end its current fiscal year with a manufacturing cash balance greater than $1 billion, which is line with its fiscal 2009 year end cash position. Negative free cash flow in the first quarter is expected to reverse in the second half of the year driven by the timing of military unit deliveries and to a lesser degree higher truck volumes; however, positive free cash flow for the year is expected to contract from 2009 due to increased capital expenditures and pension contributions. Capital expenditures of between $250 million to $350 million are expected this year, which is a more normal range for NAV's business to grow than the lower levels of $150 million and $168 million experienced in its fiscal 2009 and 2008 respectively. Further investments in NAV's Mahindra & Mahindra and CAT joint ventures this year are also expected. Other uses of cash in NAV's current fiscal year include pension contributions described later and cash interest expense that Fitch estimates will be approximately $75-100 million. OPEB contributions are expected to be negligible. Cash restructuring charges are possible this year if NAV closes its currently idled Chatham, Canada assembly plant, but Fitch expects them to be less than the $59 million of restructuring charges last year related to the closing of its Indianapolis plants. NAV does not have plans to reduce its debt in the near term. Fitch also does not expect NAV to make any major acquisitions this year after acquiring Monaco Coach last year for $50 million. NAV does not currently have an open share repurchase program, last year it repurchased $29 million of its common stock under its last repurchase program that has expired. NAV's pension plan funding status in its fiscal 2009 declined to 60.6% ($1.5 billion underfunded) compared to 74.8% in 2008. The $745 million decrease was due mainly to a $825 million actuarial loss related to a decrease in the discount rate used to determine the present value of the projected benefit obligations (discount rate at Oct. 31, 2009, was 5.4% compared to 8.3% at Oct. 31, 2008). The decline in the funded status was partially offset by asset returns. NAV contributed $37 million to its pension plans in 2009 and estimates contributions in 2010 will be $150 million (the company contributed $11 million in its first quarter) and at least $256 million per year in 2011 through 2013 to comply with existing U.S. pension plan regulations. At Oct. 31, 2009, equities accounted for 66% of NAV's pension plan assets including 7% in the company's own stock, exposing NAV to additional market and diversification risk. The remaining pension plan assets were made up of 30% debt securities and 4% other, including cash. NEIMAN MARCUS: Bank Debt Trades at 6% Off in Secondary Market ------------------------------------------------------------- Participations in a syndicated loan under which Neiman Marcus Group, Inc., is a borrower traded in the secondary market at 94.15 cents-on-the-dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 1.54 percentage points from the previous week, The Journal relates. The Company pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on April 6, 2013, and carries Moody's B3 rating and Standard & Poor's BB- rating. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Neiman Marcus Group, Inc., headquartered in Dallas, Texas, operates 40 Neiman Marcus stores, 2 Bergdorf Goodman stores, 27 clearance centers, and a direct business. Total revenues are about $3.9 billion. The Company carries a 'Caa1' Corporate Family Rating and 'Caa1' Probability of Default Rating from Moody's Investors Service. NEXAIRA WIRELESS: Posts $1.1 Million Net Loss in Q1 Ended Jan. 31 ----------------------------------------------------------------- NexAira Wireless Inc. filed its quarterly report on Form 10-Q, showing a net loss of $1.1 million on $506,338 of revenue for the three months ended January 31, 2010, compared with a net loss of $527,254 on $2.1 million of revenue for the same period ended January 31, 2009. The Company's balance sheet as of January 31, 2010, showed $2.2 million in assets and $3.2 million of debts, for a stockholders' deficit of $1.0 million. As reported in the Troubled Company Reporter on February 1, 2010, BDO Seidman, LLP, in San Diego, expressed substantial doubt about the Company's ability to continue as a going concern after auditing the Company's consolidated financial statements as of and for the years ended October 31, 2009, and 2008. The independent auditors noted that of the Company's losses from operations, negative cash flow from operations, and working capital and net capital deficits. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5b30 Headquartered in Vancouver, B.C., NextAira Wireless Inc. (OTC BB: NXWI) -- http://www.nexaira.com/-- does business through its San Diego based operating subsidiary Nexaira, Inc. Nexaira, Inc., develops and delivers third and fourth generation (3G/4G) Wireless Routing Solutions that offer speed, reliability and security to carriers, mobile operators, service providers, value added resellers (VARS) and enterprise customers. NO GOOD TV: Files for Bankruptcy to Implement Reorganization Plan ----------------------------------------------------------------- Jay Baage at Digital Media Wire says No Good TV filed for Chapter 11 bankruptcy protection to implement a reorganization plan with the cooperation and consent of its senior secured lenders. No Good TV is located in a 24,000 square foot production facility in Beverly Hills, California. NOBLE NURSERY: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Noble Nursery Retail, Inc. dba Noble Landscape and Garden Center 2456 125th Avenue NE Blaine, MN 55449 Bankruptcy Case No.: 10-41993 Chapter 11 Petition Date: March 19, 2010 Court: United States Bankruptcy Court District of Minnesota (Minneapolis) Judge: Robert J. Kressel Debtor's Counsel: Joel D. Nesset, Esq. Hinshaw & Culbertson LLP 333 South Seventh Street, Suite 2000 Minneapolis, MN 55402 Tel: (612) 333-3434 Fax: (612) 334-8888 Email: jnesset@hinshawlaw.com Thomas G. Wallrich, Esq. Hinshaw & Culbertson LLP 333 South Seventh Street, Suite 2000 Minneapolis, MN 55402 Tel: (612) 333-3434 Email: twallrich@hinshawlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company has assets of $1,885,047, and total debts of $5,809,423. A full-text copy of the Debtor's petition, including a list of its 20 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/mnb10-41993.pdf The petition was signed by Leo Vander Broek, president of the Company. NON-INVASIVE MONITORING: Posts $362,000 Loss in Q2 Ended Jan. 31 ---------------------------------------------------------------- Non-Invasive Monitory Systems, Inc., filed its quarterly report on Form 10-Q, showing a net loss of $362,000 on $199,000 of revenue for the three months ended January 31, 2010, compared with a net loss of $325,000 on $211,000 of revenue for the same period ended January 31, 2009. The Company's balance sheet as of January 31, 2010, showed $1.8 million in assets, $302,000 of debts, and $1.5 million of stockholders' equity. The Company had net losses for each of the six month periods ended January 31, 2010, and 2009, and has experienced cash outflows from operating activities. The Company also has an accumulated deficit of $20.6 million as of January 31, 2010, and has substantial purchase commitments at January 31, 2010. "These matters raise substantial doubt about the Company's ability to continue as a going concern." A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?5b31 Based in Miami, Florida, Non-Invasive Monitoring Systems Inc. (OTC BB: NIMU) -- http://www.nims-inc.com/-- markets therapeutic, motorized devices that provide non-invasive, drug-free, health solutions to the well and sick through a patented technology called Whole Body Periodic Acceleration (WBPA). NORTH AMERICAN: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: North American Technologies Group, Inc. 429 S. Memory Lane Marshall, TX 75670 Bankruptcy Case No.: 10-20071 Type of Business: Chapter 11 Petition Date: March 18, 2010 Court: United States Bankruptcy Court Eastern District of Texas (Marshall) Debtor's Counsel: Michael R. Rochelle, Esq. Rochelle McCullough L.L.P. 325 N. St. Paul St., Ste 4500 Dallas, TX 75201 Tel: (214) 953-0182 Fax: (214) 953-0185 Email: buzz.rochelle@romclawyers.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The petition was signed by Joe B. Dorman, the company's secretary/general counsel. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- TieTek, LLC 10-20072 3/18/10 Assets: $10 million to $50 million Debts: $50 million to $100 million A. North American Technologies Group, Inc's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Herakles Investments, Inc Bridge Loan and 8% $4,048,854 (Subsidiary of Sammons Debentures with Enterprises, Inc.) interest through 5949 Sherry Lane, 2/21/10 Suite 1900 Promissory Note- Dallas, TX 75225 April 2009 with interest through 12/2/09 Crestview Capital Bridge Loan and 8% $794,643 Master LLC Debentures with 95 Revere Drive, Suite A interest through Northbrook, IL 60062 2/21/10 Midsummer Investment, Ltd Bridge Loan and 8% $757,076 295 Madison Avenue, Debentures with 38th Floor interest through New York, NY 10017 2/21/10 Islandia, LP Bridge Loan and 8% $301,493 c/o John Lang, Inc. Debentures with 485 Madison Ave. interest through New York, NY 10022 2/21/10 Enable Growth Partners, Bridge Loan and 8% $287,008 LP Debentures with Portfolio Administrator interest through Enable Capital Management 2/21/10 One Ferry Bldg, Suite 255 San Francisco, CA 94111 Boyer & Ketchand Trade debt $83,299 RR Donnelley Receivables, Trade debt $45,015 Inc. Enable Opportunity Bridge Loan and 8% $33,749 Partners LP Debentures with Portfolio Administrator interest through Enable Capital Management 2/21/10 XBA Group, LLP Trade debt $31,904 Paetec Trade debt $20,996 Pierce Diversified Bridge Loan and 8% $16,873 Strategy Portfolio Debentures with Administrator interest through Enable Capital Management 2/21/10 Whitley Penn, LLP Trade debt $13,786 UHY Advisors TX, LLC Trade debt $9,023 Continental Stock Trade debt $7,577 Transfer BKD, LLP Trade debt $5,200 Montfort Office Partners, Trade debt $4,112 LP c/o Trinity Interests Key Equipment Finance Trade debt $1,917 Cummings & Houston, LP Trade debt $915 Premier Global Services Trade debt $788 Pitney Bowes Global Trade debt $484 Financial ------------ TOTAL: $6,464,711 B. TieTek, LLC's List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Sammons Corporation and Construction Loan $15,640,829 it's subsidiaries principal and less value of including Herakles interest through security Investments, Inc. and 12/27/09 interest held OPUS Promissory Note (land, building, 5949 LLC, 5949 Sherry principal and equipment, Lane, Suite 1900 interest through machinery, etc.) Dallas, TX 75225 12/27/09 PATIL infrastructures estimated cost of $639,391 PVT LTD Corporate replacement ties for Headquarters railroad ties sold and #205 & #206 Amarchand delivered that were Sharma Comp shorter than specified S.P. Road, Secunderabad by customer. India 500 003 AP Estimated amount owed for return of X-Ray Machine. J. Denny Bartell, Royalty Payments- $414,668 Co-Trustee amount owed on sales For benefit of Dune of ties through Holdings LLC and Thor 12/27/09-subject to Ventures LLC recalculation and (Collectively adjustment for aka TDRRT Royalty Trust) subsequent sales 5851 San Felipe Suite 760 Houston, TX 77057 Southwest Plastic & Fiber Trade debt $358,344 Recycling, LLC PO Box 6395 Longview, TX 75608 Sharron Knight and legal judgment $327,000 Derrick Hayes c/o Carlile Law Firm 400 S. Alamo Blvd Marshall, TX 75670 Avangard Innovative LP judgment $325,000 11906 Brittmoore Park Drive Houston, TX 77041 Astro Industries Trade debt $162,283 Pnewko S618 Wolfcreek Trade debt $147,378 Drive Environmental Plastic Trade debt $130,464 Solution B. Schoenberg & Co., Inc. Trade debt $98,920 Liberty Tire Recycling, Trade debt $82,775 LLC Prime Time Plastics, Ltd Trade debt $75,714 Poly Vulc USA Inc. Trade debt $60,113 Minera NYCO S.A. de C.V. Trade debt $58,705 NMHG Financial Services Trade debt-leased $58,550 Equipment Haynesboone Attorneys at Trade debt $39,727 Law Carolina Vermiculite Trade debt $28,800 Recycling Technology Trade debt $26,846 BNSF Railway Company Trade debt $25,875 Equipment Support Trade debt $23,978 Services ------------ TOTAL: $18,725,359 NORTH BEACHES CASA: Case Summary & 7 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: North Beaches Casa Del Mar, Inc. 12367 Mandarin Road Jacksonville, FL 32223 Bankruptcy Case No.: 10-02192 Chapter 11 Petition Date: March 19, 2010 Court: United States Bankruptcy Court Middle District of Florida (Jacksonville) Debtor's Counsel: Brett A. Mearkle, Esq. Parker & Dufresne, P.A. 8777 San Jose Blvd, Suite 301 Jacksonville, FL 32217 Tel: (904) 733-7766 Fax: (904) 7333-2919 Email: bmearkle@jaxlawcenter.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company has assets of $1,143,500, and total debts of $1,060,322. A list of the Company's 7 largest unsecured creditors is available for free at: http://bankrupt.com/misc/flmb10-02192.pdf The petition was signed by Charles Revels, president of the company. OZBURN HESSEY: Moody's Assigns 'Ba3' Rating on $310 Mil. Loan ------------------------------------------------------------- Moody's Investors Service has assigned a Ba3 rating to the planned $310 million first lien credit facility, and a B3 rating to the planned $75 million second lien credit facility of Ozburn Hessey Holding Company, LLC. The company's B3 corporate family and probability of default ratings have been affirmed. Moody's has also stabilized the ratings outlook based on the improved liquidity profile that will result from the transaction. Proceeds of the new facilities will primarily be used to refinance both its existing $252 million bank debt and $100 million bank debt of its affiliate, OH Logistics International Holdings, Inc. Following the transaction Ozburn-Hessey would own 100% of the affiliate, versus its current minority ownership level. The financial sponsor, Welsh, Carson, Anderson & Stowe, will contribute the affiliate's remaining ownership interest to Ozburn-Hessey. The outlook has been changed to stable from negative due to expected liquidity profile and operating performance improvement. Under the existing bank credit facility, potential for a financial ratio covenant breach remains elevated based on covenant test step-downs scheduled. Under the planned first lien facility, step-downs would not occur until Q2-2011 and beginning headroom should be adequate. Confidence in borrowing line access would therefore return. Full year impact of 2009 new accounts and a growing new bid pipeline, coupled with the ended recessionary de- stocking trend, should benefit near-term revenues. Cost cuts implemented in 2009 should remain in 2010, permitting better earnings with the higher revenues. Substantial 2010 volume gain from increased primary demand is not expected. The B3 corporate family rating reflects a view that robust, sustained free cash flow for debt reduction is not expected. Improvement to the slightly higher leverage level resulting from the transaction likely will be slowed by limited free cash flow. (Pro forma for the transaction, debt to EBITDA would be in the low 6.0 times range, Moody's adjusted basis.) The affirmation acknowledges Ozburn-Hessey's purchased, versus owned, transportation business model, which enables the company to aggressively bid for transportation services from a still oversupplied surface transportation network. Ratings affirmed: -- Corporate family B3 -- Probability of default B3 -- $25 million senior secured revolving facility due 2012 B1, LGD2, 24%, will be withdrawn at transaction close -- $227 million senior secured term loan due 2012 B1, LGD2, 24%, will be withdrawn at transaction close Ratings assigned: -- $35 million first lien revolver due 2014 assigned at Ba3, LGD2, 20% -- $275 million first lien term loan due 2015 assigned at Ba3, LGD2, 20% -- $75 million second lien term loan due 2016 assigned at B3, LGD4, 55% The ratings assigned herein are subject to review of final documentation. Moody's last rating action on Ozburn-Hessey occurred January 22, 2010 when the B3 corporate family rating outlook was affirmed. Ozburn-Hessey's ratings were assigned by evaluating factors Moody's believes are relevant to the credit profile of the issuer, such as i) the business risk and competitive position of the company versus others within its industry, ii) the capital structure and financial risk of the company, iii) the projected performance of the company over the near to intermediate term, and iv) management's track record and tolerance for risk. These attributes were compared against other issuers both within and outside of Ozburn-Hessey's core industry and Ozburn-Hessey's ratings are believed to be comparable to those of other issuers of similar credit risk. Ozburn-Hessey Holding Company, LLC, headquartered in Nashville, TN, is a provider of third-party logistics and related services, including warehouse management, truck brokerage, customs brokerage, freight forwarding, and dedicated contract carriage. Ozburn-Hessey is a wholly-owned subsidiary of OHH Acquisition Corporation, which is controlled by private equity group Welsh, Carson, Anderson & Stowe. Ozburn-Hessey's gross revenues were approximately $745 million for the last twelve months ended September 30, 2009. OSI RESTAURANT: Bank Debt Trades at 10% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which OSI Restaurant Partners, Inc., is a borrower traded in the secondary market at 89.50 cents-on-the-dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.77 percentage points from the previous week, The Journal relates. The Company pays 225 basis points above LIBOR to borrow under the facility. The bank loan matures on May 9, 2014, and carries Moody's B3 rating and Standard & Poor's B+ rating. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. OSI Restaurant Partners, Inc., is the #3 operator of casual-dining spots (behind Darden Restaurants and Brinker International), with more than 1,400 locations in the U.S. and 20 other countries. Its flagship Outback Steakhouse chain boasts more than 950 locations that serve steak, chicken, and seafood in Australian-themed surroundings. OSI also operates the Carrabba's Italian Grill chain, with about 240 locations. Other concepts include Bonefish Grill, Fleming's Prime Steakhouse, and Cheeseburger In Paradise. Most of the restaurants are company owned. A group led by chairman Chris Sullivan took the company private in 2007. As reported by the Troubled Company Reporter on Feb. 24, 2009, Moody's Investors Service downgraded OSI Restaurant's Probability of Default rating to Ca from Caa1 and lowered the rating on its $550 million 10% senior unsecured notes to C from Caa3. Moody's also placed OSI's Corporate Family and senior secured ratings on review for possible downgrade. The review was prompted by the recent announcement that OSI continues to experience a substantial decline in earnings and store traffic to levels worse than Moody's previously expected. The company also announced that it will likely need to take an impairment charge of between $480 and $540 million for goodwill due to a reduction in its projected results for future periods as a result of poor overall economic conditions. OXIGENE INC: Ernst & Young Raises Going Concern Doubt ----------------------------------------------------- On March 16, 2010, OXiGENE, Inc., filed its annual report on Form 10-K for the year ended December 31, 2009. Ernst & Young LLP, in Boston, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred recurring operating losses and will be required to raise additional capital, alternative means of financial support, or both, prior to January 1, 2011, in order to sustain operations. The Company reported a net loss attributed to OXiGENE, Inc. of $24.7 million on $0 revenue for the year ended December 31, 2009, compared with a net loss attibuted to OXiGENE, Inc. of $21.4 million on $12,000 of license revenue for 2008. The Company's balance sheet as of Dec. 31, 2009, showed ] $15.6 million in assets, $9.8 million of debts, and $5.8 million of stockholders' equity. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5adb South San Francisco, Calif. OXiGENE, Inc., is a clinical-stage, biopharmaceutical company developing novel therapeutics to treat cancer and eye diseases. PALM INC: Net Loss Narrows to $18.5 Million in Fiscal Q3 2010 ------------------------------------------------------------- Palm, Inc., last week reported a net loss of $18.529 million for the fiscal third quarter ended February 28, 2010, from a net loss of $95.023 million for the same period ended February 28, 2009. Palm posted a net loss of $108.281 million for the nine months ended February 28, 2010, from a net loss of $640.670 million for the same period a year ago. Palm said total revenues on a GAAP basis in the third quarter of fiscal year 2010 were $349.9 million. Gross profit and gross margin on a GAAP basis were $47.0 million and 13.4%, respectively. Palm said non-GAAP Adjusted Revenues in the third quarter totaled $366.0 million and non-GAAP Adjusted Gross Profit was $63.5 million. Non-GAAP Adjusted Gross Margin was 17.3% and was impacted by a $45.3 million charge taken in the quarter for reserves for inventory purchase commitments, which exceed current forecasted demand. Excluding the impact of the inventory purchase commitment reserves, non-GAAP Adjusted Gross Margin in the third quarter would have been 29.7%. "Our recent underperformance has been very disappointing, but the potential for Palm remains strong," said Jon Rubinstein, Palm chairman and chief executive officer. "The work we're doing to improve sales is having an impact, we're making great progress on future products, and we're looking forward to upcoming launches with new carrier partners. Most importantly, we have built a unique and highly differentiated platform in webOS, which will provide us with a considerable -- and growing -- advantage as we move forward." The company shipped a total of 960,000 smartphone units during the quarter, representing a 23% increase from the second quarter of fiscal year 2010 and an almost 300% increase versus the third quarter of fiscal year 2009. Smartphone sell-through for the third quarter was 408,000 units, down 29% from the second quarter of fiscal year 2010 and down 15% year-over-year. On a GAAP basis, net loss attributable to common stockholders for the third quarter of fiscal year 2010 was $(22.0) million, or $(0.13) per diluted common share. This compares to a net loss attributable to common stockholders for the second quarter of fiscal year 2010 of $(13.7) million, or $(0.09) per diluted share, and to a net loss attributable to common stockholders for the third quarter of fiscal year 2009 of $(98.0) million, or $(0.89) per diluted common share. Non-GAAP Net Loss for the third quarter of fiscal year 2010 was $(102.8) million, or $(0.61) per diluted share. This compares to a non-GAAP Net Loss for the second quarter of fiscal year 2010 of $(45.5) million, or $(0.29) per diluted share, and to a non-GAAP Net Loss for the third quarter of fiscal year 2009 of $(94.7) million, or $(0.86) per diluted share. Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the third quarter of fiscal year 2010 totaled $(5.7) million. EBITDA, adjusted to exclude the effect of ratable revenue recognition, stock-based compensation, net other income (expense), restructuring charges, a casualty recovery, a gain on the sale of auction rate securities and a gain on series C derivatives, or Adjusted EBITDA, totaled $(90.2) million. As of February 28, 2010, Palm had total assets of $1.007 billion; total current liabilities of $601.133 million; Long-term debt of $387.000 million; Non-current deferred revenues of $19.001 million; Non-current tax liabilities of $6.286 million; Series B redeemable convertible preferred stock of $272.961 million; and Series C redeemable convertible preferred stock of $18.782 million; resulting in stockholders' deficit of $297.926 million. The company's cash, cash equivalents and short-term investments balance was $591.9 million at the end of the third quarter of fiscal year 2010. Cash used from operations for the third quarter of fiscal year 2010 was $(0.5) million. A full-text copy of Palm's earnings release is available at no charge at http://ResearchArchives.com/t/s?5b61 About Palm Inc. Sunnyvale, California-based Palm, Inc. (NASDAQ: PALM) creates intuitive and powerful mobile experiences that enable consumers and businesses to connect to their information in more useful and usable ways. Palm products are sold through select Internet, retail, reseller and wireless operator channels, and at the Palm online store at http://www.palm.com/store * * * As reported by the Troubled Company Reporter on March 5, 2010, Standard & Poor's Ratings Services affirmed its 'CCC+' corporate credit rating and other ratings on Palm Inc. and revised the ratings outlook to negative from positive. "The action reflects the company's announcement that revenues in the February 2010 quarter and fiscal year ending May 2010 will be well below earlier expectations," said Standard & Poor's credit analyst Bruce Hyman. PALM INC: Samana, Maverick No Longer Hold Shares ------------------------------------------------ Greenwich, Connecticut-based Samana Capital, L.P., Morton Holdings, Inc., and Philip B. Korsant disclosed that as of December 31, 2009, they no longer held shares of Palm Inc. common stock. New York-based Maverick Capital, Ltd.; Maverick Capital Management, LLC; and Lee S. Ainslie III also disclosed that as of December 31, 2009, they no longer held shares of Palm Inc. common stock. Sunnyvale, California-based Palm, Inc. (NASDAQ: PALM) creates intuitive and powerful mobile experiences that enable consumers and businesses to connect to their information in more useful and usable ways. Palm products are sold through select Internet, retail, reseller and wireless operator channels, and at the Palm online store at http://www.palm.com/store * * * As reported by the Troubled Company Reporter on March 5, 2010, Standard & Poor's Ratings Services affirmed its 'CCC+' corporate credit rating and other ratings on Palm Inc. and revised the ratings outlook to negative from positive. "The action reflects the company's announcement that revenues in the February 2010 quarter and fiscal year ending May 2010 will be well below earlier expectations," said Standard & Poor's credit analyst Bruce Hyman. PALM INC: Credit Suisse Holds 1.1% of Common Stock -------------------------------------------------- Zurich, Switzerland-based Credit Suisse AG disclosed that as of December 31, 2009, it may be deemed to beneficially own 1,807,120 shares or roughly 1.1% of the common stock of Palm Inc. Sunnyvale, California-based Palm, Inc. (NASDAQ: PALM) creates intuitive and powerful mobile experiences that enable consumers and businesses to connect to their information in more useful and usable ways. Palm products are sold through select Internet, retail, reseller and wireless operator channels, and at the Palm online store at http://www.palm.com/store * * * As reported by the Troubled Company Reporter on March 5, 2010, Standard & Poor's Ratings Services affirmed its 'CCC+' corporate credit rating and other ratings on Palm Inc. and revised the ratings outlook to negative from positive. "The action reflects the company's announcement that revenues in the February 2010 quarter and fiscal year ending May 2010 will be well below earlier expectations," said Standard & Poor's credit analyst Bruce Hyman. PALM INC: Artis Capital Holds 0.2% of Common Stock -------------------------------------------------- San Francisco, California-based Artis Capital Management, L.P.; Artis Capital Management, Inc.; and Stuart L. Peterson disclosed that as of December 31, 2009, they may be deemed to beneficially own 303,000 shares or roughly 0.2% of the common stock of Palm Inc. Sunnyvale, California-based Palm, Inc. (NASDAQ: PALM) creates intuitive and powerful mobile experiences that enable consumers and businesses to connect to their information in more useful and usable ways. Palm products are sold through select Internet, retail, reseller and wireless operator channels, and at the Palm online store at http://www.palm.com/store * * * As reported by the Troubled Company Reporter on March 5, 2010, Standard & Poor's Ratings Services affirmed its 'CCC+' corporate credit rating and other ratings on Palm Inc. and revised the ratings outlook to negative from positive. "The action reflects the company's announcement that revenues in the February 2010 quarter and fiscal year ending May 2010 will be well below earlier expectations," said Standard & Poor's credit analyst Bruce Hyman. PERSONALITY HOTELS: Section 341(a) Meeting Scheduled for April 13 ----------------------------------------------------------------- The U.S. Trustee for Region 17 will convene a meeting of creditors in Personality Hotels III, LLC's Chapter 11 case on April 13, 2010, at 10:30 a.m. The meeting will be held at San Francisco U.S. Trustee Off, Office of the U.S. Trustee, 235 Pine Street, Suite 850, San Francisco, CA 94104. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. San Francisco, California-based Personality Hotels III, LLC, owns Hotel Frank and Vertigo Hotel in San Francisco. The Company filed for Chapter 11 bankruptcy protection on March 10, 2010 (Bankr. N.D. Calif. Case No. 10-30804). Edward C. Singer, Esq., at Lemi Group Legal Department, assists the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $50,000,001 to $100,000,000 in liabilities. PHEASANT RUN: Files Schedules of Assets & Liabilities ----------------------------------------------------- Pheasant Run Apartments, L.P., has filed with the U.S. Bankruptcy Court for the Southern District of Indian its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $10,483,000 B. Personal Property $228,300 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $9,800,000 E. Creditors Holding Unsecured Priority Claims $392,323 F. Creditors Holding Unsecured Non-priority Claims $270,977 ----------- ----------- TOTAL $10,711,300 $10,463,300 Indianapolis, Indiana-based Pheasant Run Apartments, L.P., filed for Chapter 11 bankruptcy protection on March 11, 2010 (Bankr. S.D. Ind. Case No. 10-03060). Scott N. Schreiber, Esq., at Stahl Cowen Crowley, LLC, assists the Company in its restructuring effort. PHEASANT RUN: Section 341(a) Meeting Scheduled for April 21 ----------------------------------------------------------- The U.S. Trustee for Region 10 will convene a meeting of creditors in Pheasant Run Apartments, L.P.'s Chapter 11 case on April 21, 2010, at 1:30 p.m. The meeting will be held at Room 416C U.S. Courthouse, 46 E. Ohio Street, Indianapolis, IN 46204. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Indianapolis, Indiana-based Pheasant Run Apartments, L.P., filed for Chapter 11 bankruptcy protection on March 11, 2010 (Bankr. S.D. Ind. Case No. 10-03060). Scott N. Schreiber, Esq., at Stahl Cowen Crowley, LLC, assists the Company in its restructuring effort. According to the schedules, the Company has assets of $10,711,300, and total debts of $10,463,300. PINNACLE FOODS: Bank Debt Trades at 5% Off in Secondary Market -------------------------------------------------------------- Participations in a syndicated loan under which Pinnacle Foods is a borrower traded in the secondary market at 95.32 cents-on-the- dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 1.04 percentage points from the previous week, The Journal relates. The Company pays 275 basis points above LIBOR to borrow under the facility. The bank loan matures on April 2, 2014, and carries Moody's B2 rating and Standard & Poor's B rating. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. On Nov. 24, 2009, the Troubled Company Reporter said that Standard & Poor's placed its rating on Pinnacle Foods Group LLC, including its 'B-' corporate credit rating, on CreditWatch with positive implications. "We placed the ratings on CreditWatch positive when Pinnacle Foods announced an agreement to acquire Birds Eye Foods, Inc., in a transaction valued at $1.3 billion," said Standard & Poor's credit analyst Christopher Johnson. "We believe that the acquisition will likely be leverage neutral." S&P estimates that pro forma debt to EBITDA, excluding any EBITDA synergies, would be about 7.8x compared with a ratio of about 7.7x for the 12 months ended Sept. 30, 2009, and that potential synergies from the combination could result in reduced leverage following the close of the transaction. Based in Mt. Lakes, N.J., Pinnacle Foods Group LLC manufactures, markets and distributes branded food products. It was formerly referred as Pinnacle Foods Group, Inc., prior to April 2, 2007. PONIARD PHARMA: Posts $45.7 Million Net Loss in 2009 ---------------------------------------------------- Poniard Pharmaceuticals, Inc., filed its annual report on Form 10-K, showing a net loss of $45.7 million for the year ended December 31, 2009, compared with a net loss of $48.6 million for 2008. The Company reported zero revenue in both years. The Company's balance sheet as of Dec. 31, 2009, showed $52.4 million in assets, $28.8 million of debts, and $23.6 million of stockholders' equity. KPMG LLP, in Seattle, Wash., expressed substantial doubt about the Company's ability to continue as a going concern in its report on the Company's consolidated financial statements for the year ended December 31, 2008. The independent auditors noted that of the Company's recurring losses from operations and negative cash flows. On May 22, 2009, the Board of Directors of the Company, based on its Audit Committee's recommendation, dismissed KPMG LLP and approved the engagement of Ernst & Young LLP to serve as the Company's independent auditors for the fiscal year 2009. While E&Y did not include a "going concern" explanatory paragraph in its report on the Company's fiscal year 2009 consolidated financial statements, the Company said in its Form 10-K report for 2009: "Our consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business for a reasonable period following the date of these financial statements. As of December 31, 2009, we had net working capital of $27.4 million, an accumulated deficit of $408.2 million and total shareholders' equity of $23.6 million." A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5ab8 South San Francisco, Calif.-based Poniard Pharmaceuticals, Inc. is a biopharmaceutical company focused on the development and commercialization of cancer therapeutics. The Company's lead product candidate is picoplatin, a new generation platinum-based cancer therapy that has the potential to become a platform product for use in different formulations, as a single agent or in combination with other anti-cancer agents, to treat multiple cancer indications, including small cell lung, colorectal, prostate and ovarian cancers. QUEST RESOURCE: Files Form 15 to Deregister Unsold Shares --------------------------------------------------------- Postrock Energy Services Corporation, formerly named Quest Resource Corporation, has filed with the Securities and Exchange Commission a Form 15 to cancel the registration of the Company's: -- Common Stock, par value $0.001 per share; and -- Series B Junior Participating Preferred Stock Purchase Rights On March 5, 2010, pursuant to the Agreement and Plan of Merger -- dated as of July 2, 2009 and amended on October 2, 2009, by and among PostRock Energy Corporation, QRCP, Quest Midstream Partners, L.P., Quest Energy Partners, L.P., Quest Midstream GP, LLC, Quest Energy GP, LLC, Quest Resource Acquisition Corp. as QRCP Merger Sub; Quest Energy Acquisition, LLC, Quest Midstream Holdings Corp. and Quest Midstream Acquisition, LLC -- QRCP Merger Sub merged with and into QRCP, with QRCP surviving. QRCP was subsequently renamed as PostRock Energy Services Corporation. As a result of the merger, QRCP became a wholly-owned subsidiary of PostRock. Immediately prior to the merger, the Series B Junior Participating Preferred Stock Purchase Rights ceased to be outstanding. Pursuant to the QRCP Merger, each share of QRCP common stock was converted into the right to receive 0.0575 shares of PostRock common stock, ceased to be issued, was delisted from The Nasdaq Global Market and will be deregistered under the Securities Exchange Act of 1934, as amended. QRCP also has filed with the SEC Post-Effective Amendment to various Registration Statements related to the offering of shares of QRCP's common stock, preferred stock, senior debt securities, subordinated debt securities, and warrants, together with the guarantees of the senior debt securities by certain subsidiary guarantors of QRCP. QRCP deregistered any and all securities previously registered under the Registration Statements that remain unsold. Going Concern QRCP incurred significant losses from 2003 through 2008 and into 2009, mainly attributable to operations, legal restructurings, financings, the current legal and operational structure and, to a lesser degree, the cash expenditures resulting from the investigation related to certain unauthorized transfers, repayments and re-transfers of funds to entities controlled by its former chief executive officer. The Company has determined that there is substantial doubt about its ability to continue as a going concern. About Quest Resource Quest Resource Corporation -- http://www.questresourcecorp.com/-- is a fully integrated E&P company that owns: producing properties and acreage in the Appalachian Basin of the northeastern United States; 100% of the general partner and a 57% limited partner interest in Quest Energy Partners, L.P. ("QELP"), including subordinated units; and 85% of the general partner and 36.4% of the limited partner interests in the form of subordinated units in Quest Midstream Partners, L.P. ("QMLP"). The Company operates and controls QELP and QMLP through its ownership of their general partners. Quest Energy Partners, L.P. -- http://www.qelp.net/-- was formed by the Company to acquire, exploit and develop natural gas and oil properties and to acquire, own, and operate related assets. QELP owns more than 2,400 wells and is the largest producer of natural gas in the Cherokee Basin, which is located in southeast Kansas and northeast Oklahoma. QELP also owns natural gas and oil producing wells in the Appalachian Basin of the northeastern United States and in Seminole County, Oklahoma. Quest Midstream Partners, L.P. -- http://www.qmlp.net/-- was formed by the Company to acquire and develop transmission and gathering assets in the midstream natural gas and oil industry. QMLP owns more than 2,000 miles of natural gas gathering pipelines and over 1,100 miles of interstate natural gas transmission pipelines in Oklahoma, Kansas, and Missouri. RADIENT PHARMACEUTICALS: St. George Extends Waiver Until May 15 --------------------------------------------------------------- Radient Pharmaceuticals Corporation, formerly AMDL, Inc., disclosed that on February 16, 2010, it entered into a Waiver of Default agreement with St. George Investments, LLC, pursuant to which: (i) St. George waived all defaults through May 15, 2010, and agreed not to accelerate the amounts due under a 12% promissory note before May 15, 2010; and (ii) St. George will exercise their Warrant to purchase 140,000 shares of the Company's common stock at $0.65 per share. In consideration for the waiver, Radient agreed to pay St. George a default fee equal to $50,000, which will be added to the balance of the Note effective as of the February 16, 2010. If the Company fails to comply with the terms of the February 16 Waiver, the February 16 Waiver shall be immediately withdrawn, deemed to have never been given and the occurrence of default will again be effective, pursuant to which St. George can declare the outstanding balance of their note immediately due and payable. On December 11, 2009, Radient entered into a Waiver of Default agreement with St. George, pursuant to which St. George waived all defaults under the 12% promissory note in the principal amount of $555,555.56 through February 1, 2010 and agreed not to accelerate any amounts due under the St. George Note before February 1, 2010. Going Concern Qualification On April 15, 2009, Radient Pharmaceuticals (formerly AMDL, Inc.) filed with the SEC an Annual Report on Form 10-K in which included an audit opinion with a "going concern" explanatory paragraph which expresses doubt, based upon current financial resources, as to whether AMDL can meet its continuing obligations without access to additional working capital. About Radient Pharmaceuticals Headquartered in Tustin, California, Radient Pharmaceuticals Corporation, formerly AMDL, Inc., is an integrated pharmaceutical company devoted to the research, development, manufacturing, and marketing of diagnostic, and premium skin care products. At September 30, 2009, the Company had $26,160,438 in total assets against $4,927,694 in total liabilities. The September 30 balance sheet showed strained liquidity: The Company had $246,048 in total current assets against $2,950,658 in total current liabilities. RADLAX GATEWAY: Has Until April 21 to Propose Chapter 11 Plan ------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois extended RadLAX Gateway Hotel, LLC, et al.'s exclusive periods to file and solicit acceptances of the proposed Chapter 11 Plan until April 21, 2010, and June 21, 2010, respectively. Oak Brook, Illinois-based RadLAX Gateway Hotel, LLC, operates a hotel. The Company and its affiliates filed for Chapter 11 on Aug. 17, 2009 (Bankr. N.D. Ill. Case Nos. 09-30047 - 09-30032). David M. Neff, Esq., at Perkins Coie LLP represents the Debtors in their restructuring efforts. In their petition, the Debtors listed $50,000,001 to $100,000,000 in assets and $100,000,001 to $500,000,000 in debts. RADLAX GATEWAY: Can Access Airport Room Revenues Until April 21 --------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois, in a fifth interim order, authorized RadLAX Gateway Hotel, LLC, and its debtor-affiliates to: -- use until April 21, 2010, Radisson Hotel at Los Angeles Airport's rooms revenues and food and beverage revenues in which the lender has an interest; and -- grant adequate protection to a secured lender. A further hearing in the Debtor's access to the cash collateral will be held on April 21, 2010, at 10:30 a.m. Objections, if any, are due on April 14, 2010. As reported in the Troubled Company Reporter on December 29, 2009, as of the petition date, the Debtor and RadLAX Gateway Deck, LLC, owed in excess of $120 million on account of the construction loan from Amalgamated Bank, as trustee of the Longview Ultra I Construction Loan Investment Fund, in its capacity as administrative agent for itself and San Diego National Bank. The Debtor would use the cash collateral to pay operating expenses of the hotel. As adequate protection to Amalgamated Bank, the Debtor said that the continued operation and maintenance of the hotel will preserve the value of the lender's collateral. The Debtor is not providing the lender with any additional liens. The Debtors' use of cash collateral will expire on the earliest to occur of: (a) April 21, 2010; or (b) the occurrence of a termination event. About RadLAX Gateway Hotel Oak Brook, Illinois-based RadLAX Gateway Hotel, LLC, operates a hotel. The Company and its affiliates filed for Chapter 11 on Aug. 17, 2009 (Bankr. N.D. Ill. Case Nos. 09-30047 - 09-30032). David M. Neff, Esq., at Perkins Coie LLP represents the Debtors in their restructuring efforts. In their petition, the Debtors listed $50,000,001 to $100,000,000 in assets and $100,000,001 to $500,000,000 in debts. RAYMOND LEE ROSSI: Case Summary & 8 Largest Unsecured Creditors --------------------------------------------------------------- Joint Debtors: Raymond Lee Rossi dba Rossi Produce dba Rossi Trading Anita Marie Rossi dba Rossi Produce dba Rossi Trading 19150 County Road 10 Hudson, CO 80642-9121 Bankruptcy Case No.: 10-15925 Chapter 11 Petition Date: March 19, 2010 Court: United States Bankruptcy Court District of Colorado (Denver) Judge: Howard R. Tallman Debtors' Counsel: Jeffrey Weinman, Esq. 730 17th St., Ste. 240 Denver, CO 80202 Tel: (303) 572-1010 Email: jweinman@epitrustee.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company has assets of $2,741,884 and total debts of $8,872,082. A list of the Company's 8 largest unsecured creditors is available for free at: http://bankrupt.com/misc/cob10-15925.pdf The petition was signed by the Joint Debtors. RBDB INVESTMENTS: Case Summary & 2 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: RBDB Investments LLC 2565 Shaker Village Drive North Bend, OH 45052 Bankruptcy Case No.: 10-11748 Chapter 11 Petition Date: March 19, 2010 Court: United States Bankruptcy Court Southern District of Ohio (Cincinnati) Judge: Jeffery P. Hopkins Debtor's Counsel: Charles M. Meyer, Esq. Santen & Hughes 600 Vine Street, Suite 2700 Cincinnati, OH 45202 Tel: (513) 852-5986 Fax: (513) 721-0109 Email: cmm@santen-hughes.com Deepak K. Desai, Esq. Santen & Hughes LPA 600 Vine Street, Suite 2700 Cincinnati, OH 45202 Tel: (513) 721-4450 Fax: (513) 721-0109 Email: dkd@santen-hughes.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 According to the schedules, the Company has assets of $10,375,000, and total debts of $11,837,160. The petition was signed by Richard T. Brunsman Jr., the company's authorized member. Debtor-affiliates that filed separate Chapter 11 petitions: Petition Debtor Case No. Date ------ -------- ---- Richard T. Brunsman, Jr. 10-11371 3/05/10 Harmony Park, LLC 10-11566 3/12/10 Debtor's List of 2 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Center Bank Bank loan $736,664 744 SR 28 Milford, OH 45150 North Side Bank & Trust Release of mortgage $1,460,000 4125 Hamilton Avenue in exchange for Cincinatti, OH 45203 partial assignment of proceeds payable on promissory note held by Cleves Development LLC REMINGTON RANCH: Amends List of Largest Unsecured Creditors ----------------------------------------------------------- Remington Ranch, LLC, filed with the U.S. Bankruptcy Court for the District of Oregon amended list of largest unsecured creditors. A full-text copy of the list of unsecured creditors are: http://bankrupt.com/misc/RemingtonRanch_AmendedUnsecCreditors.pdf Powell Butte, Oregon-based Remington Ranch, LLC, is a property developer. The Company filed for Chapter 11 bankruptcy protection on January 21, 2010 (Bankr. D. Ore. Case No. 10-30406). The Company listed $10,000,001 to $50,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. REMINGTON RANCH: Files Schedules of Assets and Liabilities ---------------------------------------------------------- Remington Ranch, LLC, filed with the U.S. Bankruptcy Court for the District of Oregon its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $29,000,000 B. Personal Property $298,544 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $17,074,360 E. Creditors Holding Unsecured Priority Claims $8,401 F. Creditors Holding Unsecured Non-priority Claims $15,370,523 ----------- ----------- TOTAL $29,298,544 $32,453,284 Powell Butte, Oregon-based Remington Ranch, LLC, is a property developer. The Company filed for Chapter 11 bankruptcy protection on January 21, 2010 (Bankr. D. Ore. Case No. 10-30406). The Company listed $10,000,001 to $50,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. REMINGTON RANCH: Has Access to James Pippin Cash Until March 26 --------------------------------------------------------------- The Hon. Elizabeth Perris of the U.S. Bankruptcy Court for the District of Oregon authorized, on an interim basis, Remington Ranch, LLC, to obtain $15,335 postpetition financing from James Pippin to pay operating expenses until a final hearing is held. A final hearing on the Debtor's request for cash collateral use will be held on March 26, 2010, at 9:00 a.m. at Courtroom No. 1 in Portland. As reported in the Troubled Company Reporter on February 5, 2010, the DIP lender has committed to provide up to $45,000 with an interest at 6% per annum. The postpetition financing from the lender will be given an administrative expense status, subordinate only to U.S. Trustee fees and professional fees. Powell Butte, Oregon-based Remington Ranch, LLC, is a property developer. The Company filed for Chapter 11 bankruptcy protection on January 21, 2010 (Bankr. D. Ore. Case No. 10-30406). The Company listed $10,000,001 to $50,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. REMINGTON RANCH: Has Until May 21 to Propose Reorganization Plan ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Oregon directed Remington Ranch, LLC, to file a disclosure statement and plan of reorganization by May 21, 2010. Powell Butte, Oregon-based Remington Ranch, LLC, is a property developer. The Company filed for Chapter 11 bankruptcy protection on January 21, 2010 (Bankr. D. Ore. Case No. 10-30406). The Company listed $10,000,001 to $50,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. In its schedules, the Debtor listed total assets of $29,298,544 and total liabilities of $32,453,284. RIM DEVELOPMENT: Files Amended Schedules of Assets and Liabilities ------------------------------------------------------------------ RIM Development, LLC, filed with the U.S. Bankruptcy Court for the District of Kansas amended schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $20,000,000 B. Personal Property $293,743 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $11,302,541 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $383,172 ----------- ----------- TOTAL $20,290,743 $11,685,713 Roca, Nebraska-based RIM Development, LLC, filed for Chapter 11 bankruptcy protection on January 22, 2010 (Bankr. D. Kan. Case No. 10-10132). Susan G. Saidian, Esq., who has an office in Wichita, Kansas, assists the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. RIM DEVELOPMENT: Has Access to Lenders' Cash Until April 8 ---------------------------------------------------------- The U.S. Bankruptcy Court for the District of Kansas, in a minutes for the March 11 hearing, extended until April 8, 2010, RIM Development, LLC's access to cash securing obligation to its prepetition lenders. The hearing will be held at at Wichita Room 150. A final hearing on the Debtor's cash collateral use will be held on April 8, 2010, at 1:30 p.m. The Debtor would utilize the rents, which Commerce Bank & Trust nka CoreFirst Bank & Trust or Textron Financial holds an interest in, for payment of expenses of operating the apartment complex and the other real estate and the expenses. As adequate protection for any diminution in value of the lenders' collateral, the Debtors will grant the prepetition lenders adequate protection liens. Roca, Nebraska-based RIM Development, LLC, owns a real estate in Ogden, Kansas. The Company filed for Chapter 11 bankruptcy protection on January 22, 2010 (Bankr. D. Kan. Case No. 10-10132). Susan G. Saidian, Esq., who has an office in Wichita, Kansas, assists the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. RONALD PARKHURST: Case Summary & 2 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Ronald William Parkhurst P.O. Box 827 1510 Piiholo Road Makawao, HI 96768 Bankruptcy Case No.: 10-00755 Chapter 11 Petition Date: March 17, 2010 Court: United States Bankruptcy Court District of Hawaii (Honolulu) Judge: Bankruptcy Judge Robert J. Faris Debtor's Counsel: Frederick J. Arensmeyer, Esq. Dubin Law Offices 55 Merchant Street, Suite 3100 Honolulu, HI 96813 Tel: (808) 537-2300 Fax: (808) 523-7733 Email: farensmeyer@dubinlaw.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $500,001 to $1,000,000 A list of the Company's 2 largest unsecured creditors is available for free at: http://bankrupt.com/misc/hib10-00755.pdf The petition was signed by Mr. Parkhurst. ROTHSTEIN ROSENFELDT: Bankr. Court Won't Hear 3rd Party Claims -------------------------------------------------------------- Bankruptcy Law360 reports that a district court has refused to refer third-party claims arising from Scott Rothstein's $1.2 billion Ponzi scheme to the bankruptcy court that is overseeing the Chapter 11 proceeding of Rothstein's law firm. Scott Rothstein, co-founder to Rothstein Rosenfeldt, has been suspected of running a multimillion-dollar Ponzi scheme. U.S. authorities claimed in a civil forfeiture lawsuit filed Nov. 9 that Mr. Rothstein, the firm's former chief executive officer, sold investments in non-existent legal settlements. Mr. Rothstein hasn't been charged criminally by U.S. authorities, who continue to investigate the case. Creditors of Rothstein Rosenfeldt Adler PA signed a petition sending the Florida law firm to bankruptcy (Bankr. S.D. Fla. Case No. 09-34791). The petitioners include Bonnie Barnett, who says she lost $500,000 in legal settlement investments; Aran Development, Inc., which said it lost $345,000 in investments; and trade creditor Universal Legal, identified as a recruitment firm, which said it is owed $7,800. The creditors alleged being owed money invested in lawsuit settlements. Herbert M. Stettin, the state-court appointed receiver for Rothstein Rosenfeldt, was officially carried over as the Chapter 11 trustee in the involuntary bankruptcy case. RUBICON US: Delaware Court Terminates Exclusive Plan Filing ----------------------------------------------------------- The Hon. Brendan Shannon of the U.S. Bankruptcy Court for the District of Delaware terminated, at the behest of the senior noteholders of Rubicon US REIT Inc., the company's exclusive period to file a Chapter 11 plan, saying the circumstances of the Chapter 11 case were "truly extraordinary" and "cry out for immediate relief," according to Reuters. About Rubicon US REIT Rubicon US REIT Inc. is a Chicago-based real estate investment trust. Rubicon filed for Chapter 11 bankruptcy protection on January 20, 2010 (Bankr. D. Del. Case No. 10-10160). Attorneys at Phillips, Goldman & Spence, have been tapped as bankruptcy counsel. Phillips, Goldman & Spence, P.A. is Delaware bankruptcy counsel Grant Thornton LLP is the Company's financial advisor. Garden City Group is the claims and notice agent. In its petition, the Company listed $100,000,001 to $500,000,000 in assets and $100,000,001 to $500,000,000 in liabilities. The Company's affiliates -- Rubicon GSA II, LLC, et al. -- also filed Chapter 11 petitions. RUFFIN ROAD OFFICE: Case Summary & 1 Largest Unsecured Creditor --------------------------------------------------------------- Debtor: Ruffin Road Office Park LP 26478 Ynez Road Temecula, CA 92591 Bankruptcy Case No.: 10-17606 Chapter 11 Petition Date: March 17, 2010 Court: United States Bankruptcy Court Central District of California (Riverside) Judge: Peter Carroll Debtor's Counsel: Thomas C. Nelson, Esq. 484 Prospect Street La Jolla, CA 92037 Tel: (619) 236-1245 Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor identified AT&T with trade debt claim for $689 as its largest unsecured creditor. A full-text copy of the Debtor's petition, including a list of its largest unsecured creditor, is available for free at: http://bankrupt.com/misc/cacb10-17606.pdf The petition was signed by Kevin Tucker, president of general partner of the Company. SAGAMORE FUND 1 LLC: Voluntary Chapter 11 Case Summary ------------------------------------------------------ Debtor: Sagamore Fund 1, LLC 15 East Putnam Avenue Greenwich, CT 06830 Bankruptcy Case No.: 10-50610 Chapter 11 Petition Date: March 18, 2010 Court: United States Bankruptcy Court District of Connecticut (Bridgeport) Judge: Alan H.W. Shiff Debtor's Counsel: Dana Kaplan, Esq. Klarides & Kaplan LLC 284 South Lambert Road Orange, CT 06477 Tel: (203) 404-1160 Fax: (203) 404-1157 Email: dkaplan@klarideskaplan.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $10,000,001 to $50,000,000 According to the schedules, the Company has assets of $1,289,326, and total debts of $3,792,331. The Debtor did not file a list of its 20 largest unsecured creditors when it filed its petition. The petition was signed by Nicholas Lizotte, managing member of the Company. SAND TECHNOLOGY: Posts C$27,951 Net Loss in Q2 Ended January 31 --------------------------------------------------------------- On March 18, 2010, SAND Technology Inc. filed a current report on Form 6-K for the month ended March 18, 2010, which contained the Company's interim consolidated financial statements for the three month period ended January 31, 2010. The Company reported a net loss of C$27,951 on C$1,924,251 of revenue for the three months ended January 31, 2010, compared with a net loss of C$127,415 on C$1,747,384 of revenue for the same period ended January 31, 2009. The Company's balance sheet as of January 31, 2010, showed C$2,807,795 in assets and C$4,151,380 of debts, for a stockholders' deficit of C$1,343,585. "In light of operating losses suffered in the past years, the Corporation's ability to realize its assets and discharge its liabilities depends on the continued financial support of its shareholders and debenture holders, its ability to obtain additional financing and its ability to achieve revenue growth. The Corporation is executing a business plan to allow it to continue as a going concern which is to continue to search for additional sources of debt and equity financing, and achieve profitability through cost containment and revenue growth. There can be no assurance that the Corporation's activities will be successful." "While the financial statements have been prepared on the basis of accounting principles applicable to a going concern, current global economic turbulence and liquidity crisis cast substantial doubt upon validity of this assumption. A full-text copy of the Company's interim consolidated financial statements for the second quarter ended January 31, 2010, is available for free at http://researcharchives.com/t/s?5b59 About SAND Technology Westmount, Quebec-based SAND Technology Inc. (OTC BB: SNDTF) -- http://www.sand.com/-- provides Data Management Software and Best Practices for storing, accessing, and analyzing large amounts of data on-demand while lowering TCO, leveraging existing infrastructure and improving operational performance. SAND/DNA solutions include CRM analytics, and specialized applications for government, healthcare, financial services, telecommunications, retail, transportation, and other business sectors. SAND Technology has offices in the United States, Canada, the United Kingdom and Central Europe. SENTINEL MANAGEMENT: 7th Circ. Puts Trustee Back On BoNY Warpath ---------------------------------------------------------------- In a robust reversal, a federal appeals court has ruled that Bankruptcy Code restrictions cannot prevent the liquidation trustee for Sentinel Management Group Inc. from suing Bank of New York Mellon Corp. on behalf of Sentinel investors allegedly defrauded of hundreds of millions of dollars, according to Bankruptcy Law360. Based in Northbrook, Illinois, Sentinel Management Group Inc. -- http://www.sentinelmgi.com/-- was a full service firm offering a variety of security solutions. The Company filed a voluntary Chapter 11 petition on August 17, 2007 (Bankr. N.D. Ill. Case No. 07-14987). Ronald Barliant, Esq., Randall Klein, Esq., and Kathryn A. Pamenter, Esq., at Goldberg, Kohn, Bell & Black Rosenbloom & Moritz, Ltd., represent the Debtor. Lawyers at Quinn, Emanuel Urquhart Oliver & Hedges, LLP, represents the Official Committee of Unsecured Creditors. When the Debtor sought bankruptcy protection, it estimated assets and debts of more than $100 million. On August 28, 2007, the Court approved Frederick Grede as the Debtor's Chapter 11 Trustee. Marc I. Fenton, Esq., at DLA Piper US LLP, and Vincent E. Lazar, Esq, at Jenner & Block LLP, represent the Chapter 11 Trustee. As reported in the Troubled Company Reporter on January 2, 2009, the Court confirmed a plan of liquidation for Sentinel on December 15, 2008, and Mr. Grede is managing the liquidation. SEQUA CORP: Bank Debt Trades at 7% Off in Secondary Market ---------------------------------------------------------- Participations in a syndicated loan under which Sequa Corporation is a borrower traded in the secondary market at 93.00 cents-on- the-dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.75 percentage points from the previous week, The Journal relates. The Company pays 325 basis points above LIBOR to borrow under the facility. The bank loan matures on Nov. 28, 2014, and carries Moody's B2 rating and Standard & Poor's B- rating. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. The Troubled Company Reporter, on Oct. 12, 2009, related that Moody's confirmed Sequa Corporation's Caa1 Corporate Family and the Probability of Default Ratings. Simultaneously, the company's senior secured bank credit facility rating was confirmed at B2 and the rating for the senior unsecured notes was confirmed at Caa2. The rating outlook is negative. This action completes the review for possible downgrade that was initiated on March 16, 2009. On July 1, 2009, the TCR reported Standard & Poor's lowered its corporate credit rating on Sequa Corporation to 'B-' from 'B'. S&P also lowered its issue-level rating on the company's senior debt to 'B-' (the same as the corporate credit rating) from 'BB-'. In addition, Standard & Poor's revised the recovery rating on this debt to '3' from '1', indicating S&P's expectations of meaningful (50%-70%) recovery in the event of a payment default. At the same time, S&P lowered its issue-level rating on Sequa's senior unsecured debt to 'CCC' (two notches below the corporate credit rating) from 'B-'. S&P also revised the recovery rating on this debt to '6' from '5', indicating S&P's expectations of negligible (0%-10%) recovery the event of a payment default. S&P also revised the outlook to negative from stable. Sequa Corporation, headquartered in New York, is a diversified industrial company operating in three business segments: aerospace through Chromalloy Gas Turbine, automotive through ARC Automotive and Casco Products and metal coating through Precoat Metals. LTM revenue as of 6/30/09 was approximately $1.5 billion. SILVER BOWL RV: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Silver Bowl RV Resort LLC dba Palm Creek Homes 1151 S. Buffalo, Ste. 220 Las Vegas, NV 89117 Bankruptcy Case No.: 10-14461 Chapter 11 Petition Date: March 19, 2010 Court: United States Bankruptcy Court District of Nevada (Las Vegas) Judge: Bruce A. Markell Debtor's Counsel: Nancy L. Allf, Esq. Law Office Of Nancy L. Allf 415 S. Sixth Street, Ste. 200f Las Vegas, NV 89101 Tel: (702) 671-0070 Fax: (702) 671-0165 Email: Nancy.Allf@gmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company has assets of $2,156,650, and total debts of $4,193,054. A full-text copy of the Debtor's petition, including a list of its 20 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/nvb10-14461.pdf The petition was signed by David Haddock, manager of the Company. Debtor-affiliate that filed separate Chapter 11 petition: Petition Debtor Case No. Date ------ -------- ---- Silver Bowl RV Resort LLC 08-22803 10/29/08 SINCLAIR BROADCAST: Dec. 31 Balance Sheet Upside-Down by $202MM --------------------------------------------------------------- Sinclair Broadcast Group, Inc., has filed with the Securities and Exchange Commission its annual report on Form 10-K for the year ended December 31, 2009. As of December 31, 2009, Sinclair had total assets of $1,597,721,000 against total liabilities of $1,799,943,000. As of December 31, 2009, Total Sinclair Broadcast Group shareholders' deficit was $211,950,000, and Noncontrolling interest was $9,728,000, resulting in Total deficit of $202,222,000. Sinclair posted a net loss for the second consecutive year, reporting a net loss of $138,029,000 from a net loss of $248,663,000 for 2008 and net income of $19,253,000 for 2007. A full-text copy of Sinclair's annual report is available at no charge at http://ResearchArchives.com/t/s?5b60 About Sinclair Broadcast Based in Baltimore, Maryland, Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) -- http://www.sbgi.net/-- one of the largest and most diversified television broadcasting companies, currently owns and operates, programs or provides sales services to 58 television stations in 35 markets. The Company's television group reaches roughly 22% of U.S. television households and includes FOX, ABC, CBS, NBC, MNT, and CW affiliates. * * * Sinclair carries Moody's Investors Service's Caa2 Corporate Family Rating and Caa3 Probability of Default Rating; and Standard & Poor's Ratings Services' 'B-' corporate credit rating. SONRISA PROPERTIES: Amends Schedules of Assets and Liabilities -------------------------------------------------------------- Sonrisa Properties, Ltd., filed with the U.S. Bankruptcy Court for the Southern District of Texas amended schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $21,000,000 B. Personal Property $98,818 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $8,201,229 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $219,310 ----------- ----------- TOTAL $21,098,818 $8,420,540 League City, Texas-based Sonrisa Properties, Ltd., filed for Chapter 11 bankruptcy protection on January 4, 2010 (Bankr. S.D. Texas Case No. 10-80012). Karen R. Emmott, Esq., who has an office in Houston, Texas, assists the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $1,000,001 to $10,000,000 in liabilities. SONRISA PROPERTIES: U.S. Trustee Unable to Form Creditors Panel --------------------------------------------------------------- Charles F. McVay, the U.S. Trustee for Region 7, notified the U.S. Bankruptcy Court for the Southern District of Texas that he was unable to appoint an official committee of unsecured creditors in the Chapter 11 case of Sonrisa Properties, Ltd. League City, Texas-based Sonrisa Properties, Ltd., filed for Chapter 11 bankruptcy protection on January 4, 2010 (Bankr. S.D. Texas Case No. 10-80012). Karen R. Emmott, Esq., who has an office in Houston, Texas, assists the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $1,000,001 to $10,000,000 in liabilities. SOUTHWEST GUARANTY: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: Southwest Guaranty, Ltd. Three Riverway, Suite 1285 Houston, TX 77056 Bankruptcy Case No.: 10-32200 Chapter 11 Petition Date: March 17, 2010 Court: United States Bankruptcy Court Southern District of Texas (Houston) Judge: Letitia Z. Paul Debtor's Counsel: Melissa Anne Haselden, Esq. Hoover Slovacek LLP 5847 San Felipe, Suite 2200 Houston, TX 77057 Tel: (713) 977-8686 Fax: (713) 977-5395 Email: Haselden@hooverslovacek.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its 20 largest unsecured creditors when it filed its petition. The petition was signed by Russell T. Gaines. SPANSION INC: Samsung Dealt Blow ITC Flash Patent Fight ------------------------------------------------------- Bankruptcy Law360 reports that a U.S. International Trade Commission administrative law judge has rejected Samsung Electronics Co. Ltd.'s bid for a determination that its products do not infringe a semiconductor patent asserted by Spansion Inc. in a case over flash memory chips. Meanwhile, Apple Inc. is appealing a court's finding that an intellectual property letter of agreement the company had with Spansion Inc. can be rejected and is not subject to certain provisions of the Bankruptcy Code, Bankruptcy Law360 reports. Spansion Inc. (Pink Sheets: SPSNQ) -- http://www.spansion.com/-- is a Flash memory solutions provider. Spansion is a former joint venture of AMD and Fujitsu. Spansion Inc., Spansion LLC, Spansion Technology LLC, Spansion International, Inc., and Cerium Laboratories LLC filed voluntary petitions for Chapter 11 on March 1, 2009 (Bankr. D. Del. Lead Case No. 09-10690). On February 9, 2009, Spansion's Japanese subsidiary, Spansion Japan Ltd., voluntarily entered into a proceeding under the Corporate Reorganization Law (Kaisha Kosei Ho) of Japan to obtain protection from its creditors as part of the company's restructuring efforts. None of Spansion's subsidiaries in countries other than the United States and Japan are included in the U.S. or Japan filings. Michael S. Lurey, Esq., Gregory O. Lunt, Esq., and Kimberly A. Posin, Esq., at Latham & Watkins LLP, have been tapped as bankruptcy counsel. Michael R. Lastowski, Esq., at Duane Morris LLP, is the Delaware counsel. Epiq Bankruptcy Solutions LLC, is the claims agent. The United States Trustee has appointed an official committee of unsecured creditors in the case. As of September 30, 2008, Spansion disclosed total assets of US$3,840,000,000, and total debts of US$2,398,000,000. Spansion Japan Ltd. filed a Chapter 15 petition on April 30, 2009 (Bankr. D. Del. Case No. 09-11480). The Chapter 15 Petitioner's counsel is Gregory Alan Taylor, Esq., at Ashby & Geddes. It said that Spansion Japan had US$10 million to US$50 million in assets and US$50 million to US$100 million in debts. Bankruptcy Creditors' Service, Inc., publishes Spansion Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by Spansion Inc. and its affiliates (http://bankrupt.com/newsstand/or 215/945-7000) SPIRIT FINANCE: Bank Debt Trades at 23% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which Spirit Finance Corp. is a borrower traded in the secondary market at 76.50 cents- on-the-dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.88 percentage points from the previous week, The Journal relates. The Company pays 300 basis points above LIBOR to borrow under the facility. The bank loan matures on May 23, 2013, and carries Moody's Ca rating and Standard & Poor's CC rating. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. The Troubled Company Reporter stated on March 5, 2010, that Standard & Poor's lowered its corporate credit rating on Spirit Finance Corp. to 'CC' from 'CCC'. At the same time, S&P lowered its rating on the company's $850 million secured term loan to 'CC' from 'CCC-'. S&P's recovery rating on the term loan remains unchanged at '5'. The outlook remains negative. "The downgrades reflect the company's bid to repurchase a portion of its term loan at a discount," said credit analyst Elizabeth Campbell. "If the company is successful, S&P will view this action as tantamount to default." Spirit Finance Corp., headquartered in Phoenix, Arizona, is a REIT that acquires single-tenant, operationally essential real estate throughout United States to be leased on a long-term, triple-net basis to retail, distribution and service-oriented companies. STAAR SURGICAL: 10-K Filing Delayed due to Domilens Divestiture --------------------------------------------------------------- In a regulatory filing Thursday, STAAR Surgical Company said that because of the need to prepare full financial reporting of the divestiture of all of its interest in Domilens GmbH, its German distribution subsidiary, on March 2, 2010, the filing of its annual report for the fiscal year ended January 1, 2010, will be delayed. The Company believes that the report of its independent auditors for the fiscal year ended January 1, 2010, will include an explanatory paragraph indicating substantial doubt about its ability to continue as a going concern, citing the Company's limited capital resources, significant financial obligations that mature in 2010, the need to satisfy or post a bond to appeal the $6.5 million judgment entered against the Company on December 8, 2009, and its history of losses. The Company expects to post a net loss of $14.5 million on $75.3 million of revenue for the year ended January 1, 2010. The Company reported a net loss of $23.2 million on $74.9 million of revenue for the year ended January 2, 2009. About STAAR Surgical Monrovia, Calif.-based STAAR Surgical Company (NASDAQ: STAA) -- http://www.staar.com/-- develops, manufactures and markets minimally invasive ophthalmic products employing proprietary technologies. STAAR's products are used by ophthalmic surgeons and include the Visian ICL, a tiny, flexible lens implanted to correct refractive errors, as well as innovative products designed to improve patient outcomes for cataracts and glaucoma. Manufactured in Switzerland by STAAR, the ICL is approved by the FDA for use in treating myopia, has received CE Marking and is sold in more than 40 countries. At October 2, 2009, the Company's consolidated balance sheets showed total assets of $59.2 million, total liabilities of $30.0 million, $6.8 million in Series A redeemable convertible preferred stock, and total stockholders' equity of $22.5 million. STATE BANK OF AURORA: Closed; Northern State Bank Assumes Deposits ------------------------------------------------------------------ State Bank of Aurora, Aurora, Minnesota, was closed March 19 by the Minnesota Department of Commerce, which appointed the Federal Deposit Insurance Corporation as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Northern State Bank, Ashland, Wisconsin, to assume all of the deposits of State Bank of Aurora. The sole branch of State Bank of Aurora is set to reopen on March 22 as a branch of Northern State Bank. Depositors of State Bank of Aurora will automatically become depositors of Northern State Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their former State Bank of Aurora branch until they receive notice from Northern State Bank that it has completed systems changes to allow other Northern State Bank branches to process their accounts as well. As of December 31, 2009, State Bank of Aurora had around $28.2 million in total assets and $27.8 million in total deposits. Northern State Bank will pay the FDIC a premium of 0.5 percent to assume all of the deposits of State Bank of Aurora. In addition to assuming all of the deposits, Northern State Bank agreed to purchase essentially all of the failed bank's assets. The FDIC and Northern State Bank entered into a loss-share transaction on $21.3 million of State Bank of Aurora's assets. Northern State Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html Customers who have questions about the transaction can call the FDIC toll-free at 1-800-830-4705. Interested parties also can visit the FDIC's Web site at: http://www.fdic.gov/bank/individual/failed/state-aurora.html The FDIC estimates that the cost to the Deposit Insurance Fund will be $4.2 million. Northern State Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to all alternatives. State Bank of Aurora is the 37th FDIC-insured institution to fail in the nation this year, and the fourth in Minnesota. The last FDIC-insured institution closed in the state was 1st American State Bank of Minnesota, Hancock, on February 5, 2010. STEPHEN RIGGS: Can Hire Jennis & Bowen as Bankruptcy Counsel ------------------------------------------------------------ Stephen C. Riggs, III, sought and obtained authorization from the Hon. William S. Shulman of the U.S. Bankruptcy Court for the Northern District of Florida to employ Jennis & Bowen, P.L., as bankruptcy counsel, nunc pro tunc to the Petition Date. J&B will, among other things: (a) take necessary action to protect and preserve the estate of the Debtor, including the prosecution of actions on his behalf, the defense of any actions commenced against him, negotiations concerning all litigation in which he may be involved, and objections, when appropriate, in objecting to claims filed against the estate; (b) prepare, on behalf of the Debtor, any applications, answers, orders, reports, and/or papers in connection with the administration of the estate; (c) prepare and file schedules of assets and liabilities; and (d) prepare and file a Chapter 11 plan of reorganization and corresponding disclosure statement J&B will be paid based on the hourly rates of its personnel: Senior Partners $375 Legal Assistants $110 J&B assures the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Destin, Florida-based Stephen C. Riggs, III, filed for Chapter 11 bankruptcy protection on February 16, 2010 (Bankr. N.D. Fla. Case No. 10-30236). David S. Jennis, Esq., at Jennis Bowen & Brundage, P.L., assists the Debtor in his restructuring effort. The Debtor listed $1,000,001 to $10,000,000 in assets and $10,000,001 to $50,000,000 in liabilities. STERLING FINANCIAL: BDO Seidman Raises Going Concern Doubt --------------------------------------------------------- On March 16, 2010, Sterling Financial Corporaion filed its annual report on Form 10-K for the year ended December 31, 2009. BDO Seidman, LLP, in Spokane, Wash., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has suffered significant net losses during 2009 and 2008, a decline in regulatory capital to support operations, and regulatory issues. The Company reported a net loss of $838.1 million for the year ended December 31, 2009, compared with a net loss of $335.5 million for 2008. Net interest income was $344.0 million in 2009, as compared to $359.6 million in 2008. The Company's balance sheet as of Dec. 31, 2009, showed $10.877 billion in assets, $10.554 billion of debts, and $323.2 million of stockholders' equity. As of December 31, 2009, the Company had net loans receivable of $7.344 billion and deposits of $7.775 billion. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5ada Spokane, Wash.-based Sterling Financial Corporation (NASDAQ: STSA) -- http://www.sterlingfinancialcorporation-spokane.com/-- is a bank holding company, organized under the laws of Washington State in 1992. The principal operating subsidiaries of Sterling are Sterling Savings Bank and Golf Savings Bank. Sterling Savings Bank, headquartered in Spokane, Wash., offers commercial banking products and services, mortgage lending, construction financing and investment products to individuals, small business, commercial organization and corporations. The main focus of Golf Savings Bank, a Washington State-chartered savings bank, is the origination and sale of residential mortgage loans. At December 31, 2009, Sterling operated 178 deposit-taking branches throughout the Western region of the United States, including the states of Washington, Oregon, Idaho, Montana and California. STERLING FINANCIAL: Fitch Downgrades Issuer Default Rating to 'C' ----------------------------------------------------------------- Fitch Ratings has downgraded Sterling Financial Corporation's long-term Issuer Default Rating to 'C' from 'CCC' and Sterling Savings Bank's long-term and short-term IDRs to 'C' and 'C', respectively. The downgrade reflects Fitch's view that STSA's ability to raise capital will be difficult under many of the conditions set forth by the U.S. Treasury under its conditional approval for the conversion of preferred stock, issued under its Capital Purchase Program in late 2008, to common equity. In order to successfully consummate the conversion of the preferred stock issued under CPP, the company must obtain consent for the repurchase of its trust preferred securities from a substantial portion of holders (at a substantial discount to par). Additionally, STSA must raise an additional $650 million of common equity. If the transactions were successfully consummated, Fitch anticipates that STSA's long- term IDR would be downgraded to restricted default, to reflect that the transactions are viewed as a coercive exchange by the holders of the trust preferred securities in accordance with Fitch's criteria for coercive debt exchanges. The company noted it has entered into a non-binding letter of intent to provide additional capital from a private equity firm. Separately, in October 2009, Sterling Savings Bank entered into an order to cease and desist with the Federal Deposit Insurance Corporation. In this agreement, the company was required to raise an additional $300 million of Tier 1 capital and achieve and maintain a Tier 1 leverage ratio not less than 10% by Dec. 15, 2009. The additional capital needed to achieve this requirement has yet to come to fruition. Fitch estimates that at Dec. 31, 2009, the company would need over $600 million of Tier 1 capital to meet the FDIC's minimum leverage capital ratio outlined in the October 2009 cease and desist. This estimate does not consider any further losses that may occur in 2010. STSA has been under tremendous pressure from a severe escalation of nonperforming loans, largely emanating from its construction loan book. At Dec. 31, 2009, the ratio of nonperforming assets to loans and other real estate owned climbed to 12.7% from 6.7% at Dec. 31, 2008. Net charge-offs totaled $555.7 million in 2009, a 151% increase over 2008. This has placed extreme pressure on capital. At year-end 2009, the ratio of tangible common equity to tangible assets was 0.27%. At Sterling Savings Bank, leverage, tier 1 and total capital ratios at YE09 were 4.2%, 5.9% and 7.3%, each falling significantly in 2009. Sterling Savings Bank is no longer considered 'well capitalized' under regulatory standards. STSA is a $10.8 billion financial institution headquartered in Spokane, Washington with a footprint primarily in the Pacific Northwest of the U.S. Fitch has downgraded these ratings: Sterling Financial Corporation -- Long-term IDR to 'C' from 'CCC'. Fitch has downgraded and removed these ratings from Rating Watch Negative: Sterling Savings Bank -- Long-term IDR to 'C' from 'B'; -- Short-term IDR to 'C' from 'B'; -- Long-term Deposits to 'CC/RR3' from 'B+/RR3'; -- Short-term Deposits to 'C' from 'B'; -- Individual Rating to 'E' from 'D/E'. Fitch has affirmed these ratings: Sterling Financial Corporation: -- Short-term IDR at 'C'; -- Individual at 'E'; -- Support at '5'; -- Support Floor at 'NF'; -- Preferred Stock at 'C/RR6'. Sterling Savings Bank -- Support at '5'; -- Support Floor at 'NF'. STEVE AND BARRY'S: Stone Barn Inches Toward Liquidation ------------------------------------------------------- A bankruptcy court judge on Thursday approved Stone Barn Manhattan LLC's disclosure statement, bringing the discount clothing retailer formerly known as Steve & Barry's LLC one step closer to a final liquidation in its Chapter 11 bankruptcy, according to Bankruptcy Law360. Headquartered in Port Washington, New York, Steve and Barry's LLC -- http://www.steveandbarrys.com/-- is a national casual apparel retailer that offers high quality merchandise at low prices for men, women and children. Founded in 1985, the company operates 276 anchor and junior anchor shopping center and mall-based locations throughout the U.S. The discount clothing chain's brands include the BITTEN(TM) collection, the first-ever apparel line created by actress and global fashion icon Sarah Jessica Parker, and the STARBURY(TM) collection of athletic and lifestyle apparel and sneakers created with NBA (R) star Stephon Marbury. Steve & Barry's LLC, and 63 affiliates filed separate voluntary petitions under Chapter 11 on July 9, 2008 (Bankr. S.D. N.Y. Lead Case No. 08-12579). Lori R. Fife, Esq., and Shai Waisman, Esq., at Weil, Gotshal & Manges, LLP, represent the Debtors in their restructuring efforts. Diana G. Adams, United States Trustee for Region 2, has appointed seven members to the Official Committee of Unsecured Creditors in the Debtors' Chapter 11 cases. On Aug. 22, 2008, the Debtors obtained permission from the Court to sell substantially all of their assets for $168 million to a joint venture by Bay Harbour Management and York Capital, BHY S&B Holdings, LLC. Under the terms of the purchase agreement, majority of the Debtors' 276 stores will remain open. Pursuant to the Purchase Agreement, the Court authorized 51 Debtors to change their corporate names. Lead Debtor Steve & Barry's Manhattan LLC (Case No. 08-12579) has been changed to Stone Barn Manhattan LLC. Parent company Steve & Barry's LLC (Case No. 08-12615) is now known as Steel Bolt LLC. When the Debtors filed for bankruptcy, they listed $693,492,000 in total assets and $638,086,000 in total debts. (Steve and Barry's Bankruptcy News; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). STEVEN CARTER ROSS: Case Summary & 19 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Steven Carter Ross 835 East 79th Street Indianapolis, IN 46240 Bankruptcy Case No.: 10-03694 Chapter 11 Petition Date: March 19, 2010 Court: United States Bankruptcy Court Southern District of Indiana (Indianapolis) Judge: Basil H. Lorch III Debtor's Counsel: Gary Lynn Hostetler, Esq. Hostetler & Kowalik, P.C. 101 W Ohio St Ste 2100 Indianapolis, IN 46204 Tel: (317) 262-1001 Fax: (317) 262-1010 Email: glh@hostetler-kowalik.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company has assets of $1,060,752, and total debts of $3,606,451. A full-text copy of Mr. Ross' petition, including a list of his 19 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/insb10-03694.pdf The petition was signed by Mr. Ross. STOCKHAM INTEREST: Files for Chapter 11 Bankruptcy in New Jersey ---------------------------------------------------------------- Danny Adler at phillyBurbs.com reports that Stockham Interest LLC filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of New Jersey. The report says the company's Stockham Building in downtown Morrisville is up for Sheriff sale on May 14, 2010. SUPERCONDUCTOR TECH: Significant Losses Prompt Going Concern Doubt ------------------------------------------------------------------ On March 17, 2010, Superconductor Technologies, Inc., filed its annual report on Form 10-K for the year ended December 31, 2009. Stonefield Josephson, Inc., in Los Angeles, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company has incurred significant net losses since its inception and has an accumulated deficit of roughly $225.7 million and expects to incur substantial additional losses and costs. The Company reported a net loss of $13.0 million on $10.8 million of revenue for the year ended December 31, 2009, compared with a net loss of $12.7 million on $11.3 million of revenue for 2008. The Company's balance sheet as of Dec. 31, 2009, showed $18.1 million in assets, $1.9 million of debts, and $16.2 million of stockholders' equity. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5b53 Santa Barbara, Calif.-based Superconductor Technologies Inc. (Nasdaq: SCON) -- http://www.suptech.com/-- provides advanced radio frequency ("RF") wireless solutions, innovative adaptive filtering, power-efficient high temperature superconductor ("HTS") materials and cryogenics for both commercial and government applications. SUPERIOR NATIONAL: 9th Circ. Rejects En Banc Bid in $450M Case -------------------------------------------------------------- A federal appeals court has let stand its affirmation of a $450 million arbitration award in favor of insolvent Superior National Insurance Co. in a dispute over reinsurance coverage for workers' compensation policies, denying a request by U.S. Life Insurance Co. for an en banc hearing, according to Bankruptcy Law360. The Superior National Insurance Group, Inc., consists of five companies. Four of the companies -- California Compensation Insurance Co., Combined Benefits Insurance Co., Superior National Insurance Co., and Superior Pacific Casualty Co. Son March 3, 2000, California Department of Insurance seized the assets and operations of Superior's insurance subsidiaries. The California Department of Insurance appeared before the Los Angeles and Sacramento superior courts on March 6, 2000, seeking conservation orders for Superior National Insurance Group to allow the commissioner to use department staff to conduct the business of the conserved company as he sees appropriate. The California Courts entered conservation orders on March 7, 2000. Superior National Insurance Group, Inc., and non-insurer affiliates Business Insurance Group, Inc., SN Insurance Services, Inc., and SN Insurance Administrators, Inc., filed chapter 11 petitions on April 26, 2000. Prior to its bankruptcy and the conservation of its insurance company units, Superior National Insurance Group had been the ninth largest workers' compensation insurance group in the nation and the largest private sector underwriter of workers' compensation insurance in California. SUPERVALU INC: Bank Debt Trades at 1% Off in Secondary Market ------------------------------------------------------------- Participations in a syndicated loan under which SUPERVALU, Inc., is a borrower traded in the secondary market at 98.72 cents-on- the-dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 1.26 percentage points from the previous week, The Journal relates. The Company pays 125 basis points above LIBOR to borrow under the facility, which matures on June 2, 2012. The bank debt is not rated by Moody's while it carries Standard & Poor's BB+ rating. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. SUPERVALU, Inc. (NYSE:SVU), -- http://www.supervalu.com/-- is a grocery channel that conducts its retail operations under the banners, such as Acme Markets, Albertsons, Bristol Farms, bigg's, Cub Foods, Farm Fresh, Hornbacher's, Jewel-Osco, Lucky, Save-A- Lot, Shaw's Supermarkets, Shop 'n Save, Shoppers Food & Pharmacy and Star Markets. Additionally, the Company provides supply chain services, primarily wholesale distribution, across the United States retail grocery channel. The Company operates in two segments: Retail food and Supply chain services. During the fiscal year ended February 28, 2009 (fiscal 2009), the Company added 44 new stores through new store development and closed 97 stores. The Company leverages its distribution operations by providing wholesale distribution and logistics and service solutions to its independent retail customers through its Supply chain services segment. As reported by the Troubled Company Reporter on July 27, 2009, Standard & Poor's Ratings Services said that it revised its outlook on Minneapolis-based supermarket and distributor SUPERVALU, Inc., to negative from stable, and affirmed the 'BB-' corporate credit rating on the company. "This action reflects S&P's expectation that SUPERVALU's credit metrics will deteriorate further from weaker operating performance, despite plans to pay down outstanding debt by $700 million," said Standard & Poor's credit analyst Stella Kapur. TAMARACK RESORT: To Be Liquidated in Chapter 7 ---------------------------------------------- Bill Rochelle at Bloomberg News reports that a bankruptcy judge in Boise, Idaho, wrote a March 17 opinion granting a request by three creditors to put Tamarack Resort LLC to involuntary Chapter 7 bankruptcy. Tamarack conceded that it wasn't paying debts as they mature, the principal requirement for being tossed into bankruptcy involuntarily. Instead, Tamarack argued that there weren't the three required petitioning creditors with undisputed claims. The bankruptcy judge, however, found three creditors with undisputed claims and granted the petition to put Tamarack into involuntary bankruptcy. A trustee will be appointed automatically to liquidate the assets. About Tamarack Resort Tamarack Resort LLC, a golf and ski resort in Valley County, Idaho, was sent to Chapter 7 after creditors submitted an involuntary petition (Bankr. D. Idaho Case No. 09-03911). The petitioning creditors include an affiliate of Bank of America Corp. owed $4.7 million. The project's 27.5% owner, VPG Investments Inc., filed for Chapter 11 reorganization in 2008, only to have the petition dismissed in October 2008 at the request of the secured creditor, Credit Suisse, Caymans Islands Branch. VPG was controlled by Mexican businessman Alfredo Miguel Afif. Credit Suisse, the agent for the secured lenders, characterized VPG's Chapter 11 case as "a classic example of a bad faith filing" made "solely as a litigation tactic" to stop foreclosure. TELANETIX INC: Posts $8.1MM Loss in 2009; Going Concern Removed --------------------------------------------------------------- Telanetix, Inc. filed its annual report on Form 10-K, showing a net loss of $8.1 million on $28.3 million of revenue for the year ended December 31, 2009, compared with a net loss of $9.7 million on $26.1 million of revenue for 2008. The Company's balance sheet as of Dec. 31, 2009, showed $28.1 million in assets and $32.1 million of debts, for a stockholders' deficit of $3.9 million. On March 27, 2009, Mayer Hoffman McCann, in San Diego, Calif., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that of the Company's recurring losses and working Capital deficit of roughly $8.0 million at December 31, 2008. Grant Thornton LLP, in Seattle, Wash., who audited the Company's consolidated financial statements for the year ended December 31, 2009, did not include a "going concern" explanatory paragraph in its report. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5b28 Bellevue, Wash.-based Telanetix, Inc. (OTC BB: TNXI) -- http://www.telanetix.com/-- is communications solutions provider offering next generation voice services to the business market. The Company's voice offerings are marketed under the "AccessLine" brand. * * * This concludes the Troubled Company Reporter's coverage of Telanetix, Inc. until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. THINKFILM LLC: Involuntary Chapter 11 Case Summary -------------------------------------------------- Alleged Debtor: Thinkfilm LLC 10960 Wilshire Bl., Ste 700 Los Angeles, CA 90024 Case Number: 10-19912 Involuntary Chapter 11 Petition Date: March 17, 2010 Court: Central District of California (Los Angeles) Judge: Barry Russell Petitioner's Counsel: David L. Neale, Esq. Levene Neale Bender Rankin & Brill LLP 10250 Constellation Blvd, Ste 1700 Los Angeles, CA 90067 Tel: (310) 229-1234 Fax: (310) 229-1244 Email: dln@lnbrb.com Debtor-affiliates that were also sent to Chapter 11 by creditors: Petition Debtor Case No. Date ------ -------- ---- R2D2, LLC 10-19924 3/17/10 CT-1 Holdings LLC 10-19927 3/17/10 CapCo Group, LLC 10-19929 3/17/10 Capitol Films Development LLC 10-19938 3/17/10 A. Thinkfilm LLC and debtor-affiliates' petitioners: Petitioners Nature of Claim Claim Amount ----------- --------------- ------------ Dox Productions Limited Judgement (inclusive $522,510 c/o Jeff Sanders Esq. of interest and Roberts Ritholz et al LLP attorney's fees 235 Park Ave South 3d Fl through February 28, New York, NY 10003 2010 only) Screen Capital Agent $594,000 International Corp 345 N Maple Dr, Ste 294 Beverly Hills, CA 90210 Solar Filmworks LLC Profit Participation $92,948 c/o Hartford O Brown Esq. (Solar Filmworks, LLC Klinedinst PC has other claims and 777 S Figueroa St 4th Flr rights which are Los Angeles, CA 90017 currently being Pursued in litigation) Allied Advertising Limited Judgement (inclusive $4,530,683 Partnership of interest through 545 Boylston Street, March 1, 2010 only) 11th Floor Boston, MA 02116 10th & Wolf, LLC Judgement $1,033,055 10061 Riverside Dr. (interest through Suite 101 October 27, 2009 only) Toluca Lake, CA 91602 --------- Total Amount of Petitioner's Claims: $6,773,197 B. R2D2, LLC and debtor-affiliates' petitioners: Petitioners Nature of Claim Claim Amount ----------- --------------- ------------ Aramid Entertainment Guaranty Claim $615,690 Fund Limited PO Box 309, GT Ugland House South Church St. Georgetown, Grand Cayman Cayman Islands Screen Capital Agent $594,000 International Corp 345 N Maple Dr, Ste 294 Beverly Hills, CA 90210 Allied Irish Banks, plc Agent of Allied $1,200,000 St. Helens Banks PLC 1, Undershaft London EC2A 8AB --------- Total Amount of Petitioner's Claims: $2,409,690 C. CT-1 Holdings LLC and debtor-affiliates' petitioners: Petitioners Nature of Claim Claim Amount ----------- --------------- ------------ Screen Capital Agent $594,000 International Corp 345 N Maple Dr, Ste 294 Beverly Hills, CA 90210 Jeffery A Gaul Unpaid fees under $46,216 Business & Financial Contractor's Agreement 5930 Sitting Bull Pl Simi Valley, CA 93063 --------- Total Amount of Petitioner's Claims: $640,216 D. CapCo Group, LLC and debtor-affiliates' petitioners: Petitioners Nature of Claim Claim Amount ----------- --------------- ------------ Screen Capital Agent $594,000 International Corp 345 N Maple Dr, Ste 294 Beverly Hills, CA 90210 Teri Zimon Unpaid wages $22,308 12707 Westminster Avenue Los Angeles, CA 90066 David Tuckerman Unpaid salary and $100,000 9390 Lloydcrest Drive bonus Beverly Hills, CA 90210 Jonathan K Beal Unpaid wages $38,109 669 Devonshire Ct. Westlake Village, CA 91361 --------- Total Amount of Petitioner's Claims: $754,417 E. Capitol Films Development LLC and debtor-affiliates' petitioners: Petitioners Nature of Claim Claim Amount ----------- --------------- ------------ Steven Elliot Altman Judgment $75,000 c/o Edward M. Altman (exclusive of The Cochran Firm interests, costs, 4929 Wilshire Blvd fees and additional Suite 1010 rights) Los Angeles, CA 90010 Screen Capital Agent $594,000 International Corp 345 N Maple Dr, Ste 294 Beverly Hills, CA 90210 Studio Transportation Wages $41,512 Drivers Local c/o Robert A. Cantore 3699 Wilshire Blvd Suite 1200 Los Angeles, CA 90010 Writers Guild of Judgment Confirming $172,944 America West Inc. Arbitration Award Maureen Oxley, Esq. (Claim is Exclusive 7000 W Third St of Interest Accruing Los Angeles, CA 90048 After October 1, 2009) --------- Total Amount of Petitioner's Claims: $883,456 TPC GROUP: Moody's Affirms Corporate Family Rating at 'B1' ---------------------------------------------------------- Moody's Investors Service affirmed TPC Group LLC's B1 Corporate Family Rating, affirmed the B1 rating on its existing term loan and assigned a B1 rating to the proposed amended and extended term loan due 2016. The rating on the proposed term loan is subject to receipt of final documentation and the acceptance of the extension by the term loan lenders. The outlook remains stable. TPC is amending its credit agreement restricted payments covenants to allow it flexibility concerning the use of the $40 million received in February 2010 from a U.S. federal tax refund and covenants covering use of excess cash flow for investments and ability to incur senior secured debt and senior unsecured debt. At the same time, it is seeking to extend the term loan maturity to January 2016 (two and one-half years) and is establishing a new, four-year $150 million asset based revolving credit facility to replace its existing $140 million revolver due 2011. The extension of the term loan maturity is subject to lenders approval, which is distinct from the approval of the change in covenants. The term loan could end up as two tranches -- one with the original June 2013 maturity and one with an extended January 2016 maturity; both will be rated B1. We view the transactions as a modest credit positive. The company will benefit from longer debt maturities that give it more time to generate sufficient cash to repay its debt and greater revolver availability due to the $10 million increase in commitments and the lack of a block on the last portion of availability under the new revolver. The tax refund received resulted from provisions of the Worker, Homeownership and Business Assistance Act of 2009 signed into law November 6, 2009, that allowed TPC to carry-back 2009 net operating losses and recover federal income taxes paid for fiscal years 2004, 2005 and 2006. The benefit from the application of net operating losses against prior year income will result in higher cash tax payments and lower cash flow for the future years that the net operating loss carry-forwards might have been used, but this impact will be spread over several years. The transactions will result in interest expense increasing as rates on the agreements reflect current, higher interest rate margins. The ratings are summarized below. TPC Group LLC Rating assigned: * Gtd Sr Sec Term Loan due 2016 - B1 (LGD4, 53%) Ratings affirmed: * Corporate Family Rating -- B1 * Probability of Default Rating -- B1 * Gtd Sr Sec Term Loan due 2013 - B1 (LGD4, 53%) from B1 (LGD4, 54%) * Outlook: Stable TPC's B1 CFR reflects is narrow commodity based product line, large market shares within its niche product lines where it is either the largest or second largest supplier, concentrated operational and geographical profile and modest EBITDA margins. Over 70% of its sales volumes are contractually insulated from fluctuations in feedstock, sales price and energy price fluctuations to protect margins. The stable outlook reflects Moody's expectations for moderate improvement in revenues and profitability for fiscal 2010 that will be supportive of its liquidity. The rating could be upgraded, should the company generate free cash flow to debt of 7%, its debt to EBITDA fell below 4x on a sustained basis and industry conditions be supportive of an upgrade. Moody's most recent announcement concerning the ratings for TPC was on November 16, 2009. At that time, Moody's moved its outlook to stable from negative and affirmed its ratings due to improvements in the company's liquidity, operating results and market demand for its products. TPC Group LLC (formerly named Texas Petrochemicals LLC) is a processor of crude C4 hydrocarbons (primarily butadiene, butene-1, isobutylene), differentiated isobutylene derivatives and nonene and tetramer. For its product lines, TPC is either the largest or second largest independent North American producer. The company operates three Texas-based manufacturing facilities in Houston, Baytown and Port Neches. Revenues were $1.2 billion for the twelve months ended December 31, 2009. TRIAD GUARANTY: Ernst & Young Raises Going Concern Doubt -------------------------------------------------------- On March 19, 2010, Triad Guaranty Inc. filed its annual report on Form 10-K for the year ended December 31, 2009. Ernst & Young LLP, in Atlanta, Ga., expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company is operating the business in run-off under Corrective Orders with the Illinois Department of Insurance and has reported a net loss for the year ended December 31, 2009, and has a stockholders' deficiency in assets at December 31, 2009. The Company reported a net loss of $595.6 million on $237.8 million of revenue for the year ended December 31, 2009, compared with a net loss of 631.1 million on $270.5 million of revenue for 2008. The Company's balance sheet as of Dec. 31, 2009, showed $1.125 billion in assets and $1.831 billion of debts, for a stockholders' deficit of $706.4 million. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5b57 Winston-Salem, N.C.-based Triad Guaranty Inc. is a holding company which, through its wholly-owned subsidiary, Triad Guaranty Insurance Corporation ("TGIC"), historically has provided mortgage insurance coverage in the United States. TGIC is an Illinois- domiciled insurance company. TRIBUNE CO: Trustee Blasts Tribune's Bonus Scheme ------------------------------------------------- BankruptcyData.com reports that the U.S. Trustee assigned to the Tribune Co. case filed an objection to the Debtors' motion to dismiss voluntarily and without prejudice their pending motion for an order authorizing the Debtors to implement transition MIP and Key Operators Bonus Components of the 2009 Management Incentive Plan. According to Court documents, "The U.S. Trustee participated in the September 24, 2009 hearing regarding the Bonus Motion and objected to the relief requested, specifically noting in closing argument that the two elements of the Bonus Motion that are the subject of the instant Motion - the "transition management incentive plan" and the "key operators bonus" - were excessive and should not be accepted." About Tribune Co. Headquartered in Chicago, Illinois, Tribune Co. -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting, including ten daily newspapers and commuter tabloids, 23 television stations, WGN America, WGN-AM and the Chicago Cubs baseball team. The Company and 110 of its affiliates filed for Chapter 11 protection on Dec. 8, 2008 (Bankr. D. Del. Lead Case No. 08- 13141). The Debtors proposed Sidley Austion LLP as their counsel; Cole, Schotz, Meisel, Forman & Leonard, PA, as Delaware counsel; Lazard Ltd. and Alvarez & Marsal North Americal LLC as financial advisors; and Epiq Bankruptcy Solutions LLC as claims agent. As of Dec. 8, 2008, the Debtors have $7,604,195,000 in total assets and $12,972,541,148 in total debts. Bankruptcy Creditors' Service, Inc., publishes Tribune Bankruptcy News. The newsletter tracks the chapter 11 proceeding undertaken by Tribune Company and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) TRICO MARINE: PwC Raises Going Concern Doubt -------------------------------------------- On March 16, 2010, Trico Marine Services, inc. filed its annual report on Form 10-K for the year ended December 31, 2009. PricewaterhouseCoopers LLP, in Houston, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that of risk the Company may not successfully obtain amendments or waivers to financial covenants, or the risk the Company may not have adequate liquidity to fund its operations or service its debt. The Company reported a net loss of $144.8 million on $642.2 million of revenue for the year ended December 31, 2009, compared with a net loss of $106.9 million on $556.1 million of revenue for 2008. The Company's balance sheet as of December 31, 2009, showed $1.076 billion in assets, $963.9 million of debts, and $112.3 million of stockholders' equity. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5adc The Woodlands, Tex.-based Trico Marine Services, Inc. is an integrated provider of subsea services, subsea trenching and protection services and towing and supply vessels to oil and natural gas exploration and production companies that operate in major offshore producing regions around the world. TRUMP ENTERTAINMENT: Posts $699.8 Million Net Loss in 2009 ---------------------------------------------------------- On March 19, 2010, Trump Entertainment Resorts, Inc., filed its annual report on Form 10-K for the year ended December 31, 2009. The Company reported a net loss of $699.8 million on $792.1 million of revenue for the year ended December 31, 2009, compared with a net loss of $291.2 million on $908.0 million of revenue for 2008. The Company's balance sheet as of Dec. 31, 2009, showed $1.397 billion in assets and $2.088 billion of debts, for a stockholders' deficit of $691.7 million. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5b58 Based in Atlantic City, New Jersey, Trump Entertainment Resorts Inc. (NASDAQ: TRMP) -- http://www.trumpcasinos.com/-- owns and operates three casino hotel properties in Atlantic City, New Jersey, which include Trump Taj Mahal Casino Resort, Trump Plaza Hotel and Casino, and Trump Marina Hotel Casino. The Company conducts gaming activities and provides customers with casino resort and entertainment. Donald Trump is a shareholder of the Company and, as its non- executive Chairman, is not involved in the daily operations of the Company. The Company is separate and distinct from Mr. Trump's privately held real estate and other holdings. Trump Entertainment Resorts, TCI 2 Holdings, LLC, and other affiliates filed for Chapter 11 on February 17, 2009 (Bankr. D. N.J., Lead Case No. 09-13654). The Company has tapped Charles A. Stanziale, Jr., Esq., at McCarter & English, LLP, as lead counsel, and Weil Gotshal & Manges as co-counsel. Ernst & Young LLP is the Company's auditor and accountant and Lazard Freres & Co. LLC is the financial advisor. Garden City Group is the claims agent. The Company disclosed assets of $2,055,555,000 and debts of $1,737,726,000 as of December 31, 2008. Trump Hotels & Casino Resorts, Inc., filed for Chapter 11 protection on Nov. 21, 2004 (Bankr. D. N.J. Case No. 04-46898 through 04-46925). Trump Hotels' obtained the Court's confirmation of its Chapter 11 plan on April 5, 2005, and in May 2005, it exited from bankruptcy under the name Trump Entertainment Resorts Inc. UNITED AIR LINES: Bank Debt Trades at 15% Off in Secondary Market ----------------------------------------------------------------- Participations in a syndicated loan under which United Airlines, Inc., is a borrower traded in the secondary market at 85.21 cents- on-the-dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 2.00 percentage points from the previous week, The Journal relates. The Company pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on Feb. 13, 2013, and carries Moody's B3 rating and Standard & Poor's B+ rating. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for Chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Eugene R. Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. (United Airlines Bankruptcy News; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) UAL Corp. carries a 'Caa1' probability of default rating from Moody's, 'B-' long term foreign issuer credit rating from Standard & Poor's, and 'CCC' long term issuer default rating from Fitch. US FOODSERVICE: Bank Debt Trades at 12% Off in Secondary Market --------------------------------------------------------------- Participations in a syndicated loan under which U.S. Foodservice, Inc., is a borrower traded in the secondary market at 88.33 cents- on-the-dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 2.20 percentage points from the previous week, The Journal relates. The Company pays 275 basis points above LIBOR to borrow under the facility, which matures on July 3, 2014. The debt carries Moody's B2 rating while it is not rated by Standard & Poor's. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. U.S. Foodservice, Inc. -- http://www.usfoodservice.com/-- is a foodservice supplier serving some 250,000 customers from more than 70 distribution facilities. The Company supplies restaurants, hotels, school, and other foodservice operators with a wide variety of food products, including canned and dry foods, meats, frozen foods, and seafood. It also distributes kitchen equipment and cleaning supplies among other non-food supplies. U.S. Foodservice distributes both national brand products and its own private labels. Tracing its roots to 1853, the company is owned by private equity firms KKR & Co. and Clayton, Dubilier & Rice. VAUGHAN FOODS: Securities to be Delisted from NasdaqCM on March 24 ------------------------------------------------------------------ As previously disclosed, on September 15, 2009, the Company was granted a 180 day grace period, or until March 15, 2010, to regain compliance with the minimum bid price of US$1.00 per share as required by NASDAQ Listing Rule 5550(a)(2). On March 16, 2010, Vaughan Foods, Inc., received a notice from the NASDAQ Listing Qualifications Department that it had not regained compliance with the Rule and is not eligible for an additional 180 calendar day compliance period given that it does not meet the Nasdaq Capital Market initial listing standard set forth in Listing Rule 5505. Accordingly, its securities will be delisted from The Nasdaq Capital Market on March 24, 2010. About Vaughan Foods Moore, Okla.-based Vaughan Foods, Inc. -- http://www.vaughanfoods.com/-- is an integrated processor and distributor of value-added, refrigerated foods. The Company sells to both food service and retail sectors. The Company's primary processing facility is in Moore, Okla. The Company's balance sheet as of Dec. 31, 2009, showed $29.4 million in assets, $22.5 million of debts, and $6.9 million of stockholders' equity. VERECLOUD INC: Amends Q2 Ended January 31; Posts $189,724 Net Loss ------------------------------------------------------------------ On March 17, 2010, Verecloud, Inc., filed Amendment No. 2 to its quarterly report on Form 10-Q for the three months ended December 31, 2009, showing a net loss of $189,724 on $1,367,131 of revenue for the three months ended December 31, 2009, compared with net income of $640,968 on $1,955,976 of revenue for the same period of 2008. This Form 10-Q/A amends and restates the financial statements as of and for the six months ended December 31, 2009, and amends and restates Item 4 of the original quarterly report. The Company's balance sheet as of Dec. 31, 2009, showed $1,963,302 in assets and $3,032,606 of debts, for a stockholders' deficit of $1,069,304. "On November 2, 2009, the Company received a contract termination notice from its largest customer, SkyTerra. SkyTerra accounted for 93% of the Company's revenue for the six months ended December 31, 2009. This raises substantial doubt about the Company's ability to continue as a going concern." A full-text copy of the amended quarterly report is available for free at http://researcharchives.com/t/s?5b2c Based in Englewood, Colo., Verecloud, Inc., formerly known as Network Cadence, Inc., is focused on providing professional services and business platform solutions to communication service providers ("CSPs"). These services and solutions are focused on the service delivery platform component of CSPs back office systems and enable CSPs to, among other things, operate more efficiently, introduce new products faster and deliver a better customer experience. VERENIUM CORP: Receives Going Concern Qualification from Auditor ---------------------------------------------------------------- Verenium Corporation (Nasdaq: VRNM) said March 19 that its Annual Report on Form 10-K for the fiscal year ended December 31, 2009, filed with the Securities and Exchange Commission on March 16, 2010, included an audit opinion containing a going concern qualification. This announcement is being made in compliance with Nasdaq Marketplace Rule 5250(b)(2), which requires any Nasdaq listed issuer receiving an audit opinion with a going concern qualification to make a public announcement to that effect. About Verenium Based in Cambridge, Mass., Verenium Corporation (NASDAQ: VRNM) -- http://www.verenium.com/-- is a leader in the development and commercialization of cellulosic ethanol, an environmentally- friendly and renewable transportation fuel, as well as high- performance specialty enzymes for applications within the biofuels, industrial, and animal health markets. Going Concern/Bankruptcy Warning The Company has incurred a net loss of $18.9 million for the nine months ended September 30, 2009, and has an accumulated deficit of $632.5 million as of September 30, 2009. Based on the Company's current operating plan, which includes payments to be received by the Company or its consolidated entities from BP relating to the first and second phases of the strategic partnership, as well as proceeds from the Company's recent equity financing, the Company says its existing working capital may not be sufficient to meet the cash requirements to fund the Company's planned operating expenses, capital expenditures, required and potential payments under the 2007 Notes, the 2008 Notes, and the 2009 Notes, and working capital requirements through 2010 without additional sources of cash and/or the deferral, reduction or elimination of significant planned expenditures. These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company adds that while it believes that it will be successful in raising or generating additional cash through a combination of corporate partnerships and collaborations, federal, state and local grant funding, selling or financing assets, incremental product sales and the additional sale of equity or debt securities, if it is unsuccessful in raising additional capital from any of these sources, it may need to defer, reduce or eliminate certain planned expenditures, restructure or significantly curtail its operations, file for bankruptcy or cease operations. VIEWCREST INVESTMENTS: Case Summary & 1 Largest Unsec. Creditor --------------------------------------------------------------- Debtor: Viewcrest Investments, LLC POB 698 Madras, OR 97741 Bankruptcy Case No.: 10-32146 Type of Business: Chapter 11 Petition Date: March 18, 2010 Court: United States Bankruptcy Court District of Oregon Judge: Elizabeth L. Perris Debtor's Counsel: Charles Thomas Boardman, Esq. 1607 NE 41st Ave Portland, OR 97232 Tel: (503) 274-1874 Email: tomboardman@comcast.net Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $500,001 to $1,000,000 The petition was signed by Robert W. Harris, the company's member. Debtor's List of 1 Largest Unsecured Creditor: Entity Nature of Claim Claim Amount ------ --------------- ------------ Russell Baldwin Precautionary $200,000 POB 1242 Attorney Fees Lincoln City, OR 97367 VIKING PROPERTIES: Case Summary & 4 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Viking Properties, Incorporated PO Box 1034 Lynnwood, WA 98046 Bankruptcy Case No.: 10-12971 Chapter 11 Petition Date: March 18, 2010 Court: United States Bankruptcy Court Western District of Washington (Seattle) Debtor's Counsel: Frank S. Homsher, Esq. Tollefsen Law Office PLLC 18225 8th PL W Lynnwood, WA 98037 Tel: (425) 673-0300 Email: frank@tollefsenlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company has assets of $5,216,200, and total debts of $6,853,141. A full-text copy of the Debtor's petition, including a list of its 4 largest unsecured creditors, is available for free at: http://bankrupt.com/misc/wawb10-12971.pdf The petition was signed by Eric W. Sundquist, owner of the Company. VINCENT PAUL ROSSI: Case Summary & 5 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Vincent Paul Rossi dba Rossi Dairy Produce, LLC 3208 WCR 49 Hudson, CO 80642 Bankruptcy Case No.: 10-15983 Chapter 11 Petition Date: March 19, 2010 Court: United States Bankruptcy Court District of Colorado (Denver) Judge: Elizabeth E. Brown Debtor's Counsel: Lee M. Kutner, Esq. 303 E. 17th Ave., Ste. 500 Denver, CO 80203 Tel: (303) 832-2400 Email: lmk@kutnerlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 According to the schedules, the Company has assets of $1,216,845, and total debts of $1,986,200. A list of the Company's 5 largest unsecured creditors is available for free at: http://bankrupt.com/misc/cob10-15983.pdf The petition was signed by Vincent Paul Rossi. VISTEON CORP: Bank Debt Trades at 112.8% in Secondary Market ------------------------------------------------------------ Participations in a syndicated loan under which Visteon Corporation is a borrower traded in the secondary market at 112.80 cents-on-the-dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 2.55 percentage points from the previous week, The Journal relates. The loan matures on May 30, 2013. Visteon pays 300 basis points above LIBOR to borrow under the facility. Moody's has withdrawn its rating on the bank debt and it is not rated by Standard & Poor's. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Headquartered in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is a global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. The company has corporate offices in Van Buren Township, Michigan (U.S.); Shanghai, China; and Kerpen, Germany. It has facilities in 27 countries and employs roughly 35,500 people. The Company has assets of $4,561,000,000 and debts of $5,311,000,000 as of March 31, 2009. Visteon Corporation and 30 of its affiliates filed for Chapter 11 protection on May 28, 2009, (Bank. D. Del. Case No. 09-11786 through 09-11818). Judge Christopher S. Sontchi oversees the Chapter 11 cases. James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., and James J. Mazza, Jr., Esq., at Kirkland & Ellis LLP, in Chicago, Illinois, represent the Debtors in their restructuring efforts. Laura Davis Jones, Esq., James E. O'Neill, Esq., Timothy P. Cairns, Esq., and Mark M. Billion, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, serve as the Debtors' local counsel. The Debtors' investment banker and financial advisor is Rothschild Inc. The Debtors' notice, claims, and solicitation agent is Kurtzman Carson Consultants LLC. The Debtors' restructuring advisor is Alvarez & Marsal North America, LLC. Bankruptcy Creditors' Service, Inc., publishes Visteon Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Visteon Corp. and its debtor-affiliates. (http://bankrupt.com/newsstand/ or 215/945-7000) VITESSE SEMICONDUCTOR: Lake Union Holds 5.0% of Common Stock ------------------------------------------------------------ Michael Self, Lake Union Capital Management, LLC and Lake Union Capital Fund, LP in Seattle, Washington, disclosed that as of March 4, 2010, they may be deemed to hold in the aggregate 20,210,000 shares or roughly 5.0% of the common stock of Vitesse Semiconductor Corporation. About Vitesse Semiconductor Based in Camarillo, California, Vitesse Semiconductor Corporation (Pink Sheets: VTSS.PK) -- http://www.vitesse.com/-- designs, develops and markets a diverse portfolio of high-performance, cost-competitive semiconductor solutions for Carrier and Enterprise networks worldwide. Engineering excellence and dedicated customer service distinguish Vitesse as an industry leader in Gigabit Ethernet, Ethernet-over-SONET, Optical Transport, and other applications. Vitesse had total assets of $87,633,000 against total debts of $130,120,000 and Series B preferred stock of $1,113,000, resulting in shareholders' deficit of $43,600,000 as of December 31, 2009. Vitesse entered into debt restructuring agreements in October 2009 with its major creditors, which allow the Company to satisfy its creditors by converting most of its debt into new common stock, preferred stock and new convertible debentures. Vitesse is seeking stockholder approval to increase the number of authorized shares of the Company's common stock from 500,000,000 to 5,000,000,000 in conjunction with the debt restructuring agreements. The Company has warned if stockholders do not approve the proposal to authorize the Company to issue more shares by February 15, 2010, it will face a 1.0% per month interest charge on the New Debentures (at a cost of about $500,000 per month) beginning on February 16, 2010 and continuing until the increase in the authorized shares is approved. In addition, the holders of the New Debentures will have the right to demand repayment of the principal amount of the debt, plus potentially certain make-whole interest payments representing interest that would have been earned if the bonds had not been converted early. The Company could potentially be forced to file for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code. WASHINGTON MUTUAL: Proposes Benefit Plan Settlements ---------------------------------------------------- Pursuant to Rule 9019 of the Federal Rules of Bankruptcy Procedure, Washington Mutual Inc. and its units have reached settlements with certain parties for the resolution of claims of certain participants to Washington Mutual Inc.'s Senior Executive Life Insurance Plan and Senior Supplemental Executive Retirement Plan, as well as the release of cash to WaMu under the SELIP policies. The Settlement Agreements are: (1) a multi-party settlement agreement dated March 16, 2010, by and among Washington Mutual, Inc., and 10 participants in certain employee benefit plans; (2) a settlement agreement reached on March 16, 2010, by and between WaMu and Participant A; and (3) a settlement agreement dated March 16, 2010, by and between WaMu and Participant B. The Debtors' Motion contains redacted versions of the Settlement Agreements as exhibits, specifically concealing the names of the Participants who are parties to the Agreements. Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, relates that in October 1998, WaMu acquired H. F. Ahmanson & Company. As successor, WaMu inherited certain assets and assumed certain liabilities of HFA, including the SELIP and SSERP Policies, which HFA established in September 1993 for its eligible senior executives. The Debtors are in the process of liquidating certain of their assets, and would like to receive WaMu's cash interest in the life insurance policies issued to participants in the SELIP. WaMu is unable to access that cash without the Participants' consent, Mr. Collins noted. As of the Petition Date, the Debtors ceased making payments pursuant to the SSERP, and asserted in their Schedules of Assets and Liabilities that Participants in the SSERP held "unliquidated liabilities against WaMu," according to Mr. Collins. In March 2009, the Participants filed proofs of claim against the Debtors for amounts owed pursuant to the SELIP and SSERP. The Participants also asserted the right to effect set-off and recoupment with respect to those Plans. Settlement Agreement Terms The Settlement Agreements provide for the parties' exchange of mutual releases and the withdrawal of the Participants' proofs of claim arising from the SSERP and SELIP Policies, Mr. Collins relates. Specifically, under the Multiparty Settlement Agreement, WaMu and the Participants agree that: (a) the Participants will surrender the Policies; (b) WaMu will receive the Company's cash value from the Policies; (c) the Participants will receive their Cash Value; (d) WaMu will provide each of the Participants the option to (i) receive a cash payment in an amount equal to the premium for a replacement life insurance policy that would provide the same death benefit to the Participant as under their current Policy or Policies; or (ii) have WaMu use a portion of the cash payment to purchase the Policy or a policy with a lesser death benefit on behalf of the Participant; and (e) WaMu will provide each of the Participants the option to receive cash in settlement of their SSERP claim or have WaMu use the net settlement funds to purchase an annuity on their behalf. According to Mr. Collins, the Participant A Settlement Agreement is similar to the Multiparty Settlement Agreement, except that because of Participant A's age, he is not being offered a replacement life insurance policy. Participant A is therefore not required to surrender his Policy. Should Participant A choose not to surrender his Policy, he will consent to WaMu withdrawing cash in the amount of $228,134, which will leave cash in the Policy in an amount sufficient to cover Participant A's death benefit under the SELIP. The Participant B Settlement Agreement has the same terms as the Multiparty Settlement Agreement. However, because Participant B received, prior to the Petition Date, a lump sum payment pursuant to his SSERP upon his retirement, the Participant B Settlement Agreement does not contemplate any payment to Participant B related to the SSERP, Mr. Collins elaborates. Mr. Collins contends that the Settlement Agreements will settle the Participants' SSERP and SELIP Claims against WaMu for an aggregate amount of approximately $32.5 million without having to incur the expense and delay attendant to litigating those issues. Most importantly, he says, WaMu will be able to quickly monetize approximately $46 million in the Company's Cash Value, in order to satisfy the Participants' Claims and make other funds available for distribution to other creditors. Debtors Seek to File Settlements Under Seal Mr. Collins tells Judge Walrath that the Settlement Agreements contain personally identifiable and private information concerning the Participants, and that disclosure of the Confidential Information in the public record could impact the Participants' privacy interests. In this regard, the Debtors seek to (i) file with the Court redacted versions of the Settlement Agreement exhibits; and (ii) submit to the Court and maintain unredacted copies of the Exhibits and related Court orders under seal. The Debtors propose to provide unredacted copies of the Settlement Agreements, on a confidential basis, to the Court, the Participants' counsel, counsel to the Official committee of Unsecured Creditors, counsel to the Official Committee of Equity Holders, and the Office of the United States Trustee, Mr. Collins says. Mr. Collins explains that "only personally identifiable information will be redacted and all economic terms of the Agreements will be disclosed." About Washington Mutual Based in Seattle, Washington, Washington Mutual Inc. -- http://www.wamu.com/-- is a holding company for Washington Mutual Bank as well as numerous non-bank subsidiaries. The Company operates in four segments: the Retail Banking Group, which operates a retail bank network of 2,257 stores in California, Florida, Texas, New York, Washington, Illinois, Oregon, New Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and Connecticut; the Card Services Group, which operates a nationwide credit card lending business; the Commercial Group, which conducts a multi-family and commercial real estate lending business in selected markets, and the Home Loans Group, which engages in nationwide single-family residential real estate lending, servicing and capital markets activities. Washington Mutual Bank was taken over September 25 by U.S. government regulators. The next day, WaMu and its affiliate, WMI Investment Corp., filed separate petitions for Chapter 11 relief (Bankr. D. Del. 08-12229 and 08-12228, respectively). Wamu owns 100% of the equity in WMI Investment. Weil Gotshal & Manges represents the Debtors as counsel. When WaMu filed for protection from its creditors, it listed assets of $32,896,605,516 and debts of $8,167,022,695. WMI Investment listed assets of $500,000,000 to $1,000,000,000 with zero debts. Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver & Hedges, LLP served as legal counsel to WMI with responsibility for the litigation. Brian Rosen, Esq., at Weil, Gotshal & Manges LLP served as legal counsel to WMI with responsibility for the chapter 11 case. Bankruptcy Creditors' Service Inc. publishes Washington Mutual Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Washington Mutual Inc. (http://bankrupt.com/newsstand/or 215/945-7000). WASHINGTON MUTUAL: Equity Panel Proposes Delaware Counsel --------------------------------------------------------- The Official Committee of Equity Security Holders in Washington Mutual Inc.'s cases seeks the Court's authority to retain Ashby & Geddes, P.A., as their Delaware counsel, nunc pro tunc to March 4, 2010. Ashby & Geddes has the requisite expertise on matters that are likely to arise in the Debtors' Chapter cases, including, but not limited to, handling bankruptcy and debt reorganization problems and procedures arising in the reorganization framework, Equity Committee Chairman Michael Willingham relates. As Delaware counsel, Ashby & Geddes will be required to render legal services relating to the administration and reorganization of the Debtors' Chapter 11 cases and to the issues that may arise out of the Debtors' businesses including, but not limited, to: (1) providing legal advice regarding the rules and practices of the Court applicable to the Equity Committee's powers and duties under Section 1102 of the Bankruptcy Code; (2) providing legal advice regarding any disclosure statement and plan filed in the Debtors' cases and with respect to the process for approving or disapproving a disclosure statement and confirming or denying confirmation of a plan; (3) preparing and reviewing applications, motions, complaints, answers, orders, agreements and other legal papers filed on behalf of the Equity Committee for compliance with the rules and practices of the Court; (4) appearing in Court to present necessary motions, applications and pleadings and otherwise protecting the interests of the Equity Committee and equity security holders of the Debtors; and (5) performing other legal services for the Equity Committee as may be necessary and proper in these Chapter 11 cases. While rendering legal services for the Equity Committee, Ashby & Geddes will coordinate with Venable LLP, as the Equity Committee's lead counsel, to avoid any duplication of effort and expense. Ashby & Geddes' professionals will be paid in accordance with these hourly rates: Professional Position Hourly Rate ------------ -------- ----------- William P. Bowden Member $590 Gregory A. Taylor Member $425 Benjamin Keenan Associate $295 Stacy L. Newman Associate $245 Ashby & Geddes will also be reimbursed for their reasonable out- of-pocket expenses. William P. Bowden, Esq., a member at Ashby & Geddes, assures the Court that his firm is a "disinterested person" within the meaning of Sections 101(14) and 328 of the Bankruptcy Code. About Washington Mutual Based in Seattle, Washington, Washington Mutual Inc. -- http://www.wamu.com/-- is a holding company for Washington Mutual Bank as well as numerous non-bank subsidiaries. The Company operates in four segments: the Retail Banking Group, which operates a retail bank network of 2,257 stores in California, Florida, Texas, New York, Washington, Illinois, Oregon, New Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and Connecticut; the Card Services Group, which operates a nationwide credit card lending business; the Commercial Group, which conducts a multi-family and commercial real estate lending business in selected markets, and the Home Loans Group, which engages in nationwide single-family residential real estate lending, servicing and capital markets activities. Washington Mutual Bank was taken over September 25 by U.S. government regulators. The next day, WaMu and its affiliate, WMI Investment Corp., filed separate petitions for Chapter 11 relief (Bankr. D. Del. 08-12229 and 08-12228, respectively). Wamu owns 100% of the equity in WMI Investment. Weil Gotshal & Manges represents the Debtors as counsel. When WaMu filed for protection from its creditors, it listed assets of $32,896,605,516 and debts of $8,167,022,695. WMI Investment listed assets of $500,000,000 to $1,000,000,000 with zero debts. Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver & Hedges, LLP served as legal counsel to WMI with responsibility for the litigation. Brian Rosen, Esq., at Weil, Gotshal & Manges LLP served as legal counsel to WMI with responsibility for the chapter 11 case. Bankruptcy Creditors' Service Inc. publishes Washington Mutual Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Washington Mutual Inc. (http://bankrupt.com/newsstand/or 215/945-7000). WASHINGTON MUTUAL: Wants $2.5-Bil. Mortgage Loan Claim Disallowed ----------------------------------------------------------------- Washington Mutual Inc. and its units ask the Court to disallow Claim No. 2692, asserting potentially more than $2.5 billion, as filed by Robert Alexander and James Reed, individually and on behalf of similarly situated individuals who obtained mortgage loans from Washington Mutual Bank or Washington Mutual Bank fsb. The Claim is a putative class claim based on the causes of action asserted by the Claimants against WaMu in a lawsuit filed in October 2007 in the United States District Court for the Eastern District of Pennsylvania. The defendants in the Pennsylvania Action are WaMu, WMB, WMBfsb and WM Mortgage Reinsurance Company, Inc., WaMu's wholly owned subsidiary. Under the Pennsylvania Action, the Claimants alleged that (i) they obtained mortgage loans from an unidentified Washington Mutual entity and agreed to pay mortgage insurance on the loans, and that (ii) their mortgage insurance was reinsured with WMMRC. The Claimants further alleged that (i) the premiums ceded to the reinsurer, WMMRC, were excessive for the risk assumed by WMMRC, (ii) no reinsurance risk was in fact assumed by WMMRC, and (iii) the arrangement was instead an illegal kickback for the referral of the mortgage insurance business or a split of a settlement service fee, all in violation of Sections 8(a) and 8(b) of the Real Estate Settlement Procedures Act. Representing the Debtors, Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, argues that the Pennsylvania Action makes no plausible allegations that could attach liability to WaMu for the reason that WaMu was not a lender and WaMu did not make the mortgage loans at issue. In addition, he points out, the Claimants do not articulate any basis for holding a non-lender and non-participant in the subject transactions liable under RESPA. Mr. Collins cites that liability under Section 8(a) of the RESPA extends only to the party alleged to have given or received a "kickback" in exchange for the alleged referral of settlement service business. In the Pennsylvania Action, he specifies, WaMu is not alleged to have given a "kickback" in exchange for a referral of mortgage insurance. Moreover, Mr. Collins tells the Court, the alleged damages in the Pennsylvania Action cannot be sustained on a class-wide basis because the Claimants lack standing to represent certain borrowers purportedly within the class, including (i) those whose mortgage insurance was placed with different providers, (ii) those whose claims are outside the limitations period, and (iii) those whose insurance was involved in reinsurance structures that are inapplicable to their loans. Mr. Collins contends that the alleged damages amount of $2.5 billion in Claim No. 2692 "is unsubstantiated and is not tied to any factual allegations." To the extent they are liable, the Debtors ask the Court to allow them to impose on the Claim any applicable claim amount cap prescribed by the Bankruptcy Code. About Washington Mutual Based in Seattle, Washington, Washington Mutual Inc. -- http://www.wamu.com/-- is a holding company for Washington Mutual Bank as well as numerous non-bank subsidiaries. The Company operates in four segments: the Retail Banking Group, which operates a retail bank network of 2,257 stores in California, Florida, Texas, New York, Washington, Illinois, Oregon, New Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and Connecticut; the Card Services Group, which operates a nationwide credit card lending business; the Commercial Group, which conducts a multi-family and commercial real estate lending business in selected markets, and the Home Loans Group, which engages in nationwide single-family residential real estate lending, servicing and capital markets activities. Washington Mutual Bank was taken over September 25 by U.S. government regulators. The next day, WaMu and its affiliate, WMI Investment Corp., filed separate petitions for Chapter 11 relief (Bankr. D. Del. 08-12229 and 08-12228, respectively). Wamu owns 100% of the equity in WMI Investment. Weil Gotshal & Manges represents the Debtors as counsel. When WaMu filed for protection from its creditors, it listed assets of $32,896,605,516 and debts of $8,167,022,695. WMI Investment listed assets of $500,000,000 to $1,000,000,000 with zero debts. Peter Calamari, Esq., and David Elsberg, Esq., at Quinn Emanuel Urquhart Oliver & Hedges, LLP served as legal counsel to WMI with responsibility for the litigation. Brian Rosen, Esq., at Weil, Gotshal & Manges LLP served as legal counsel to WMI with responsibility for the chapter 11 case. Bankruptcy Creditors' Service Inc. publishes Washington Mutual Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Washington Mutual Inc. (http://bankrupt.com/newsstand/or 215/945-7000). WAVE SYSTEMS: Posts $3.3 Million Net Loss in 2009 ------------------------------------------------- Wave Systems Corp. filed its annual report on Form 10-K, showing a net loss of $3.3 million on $18.9 million of revenue for the year ended December 31, 2009, compared with a net loss of $20.5 million on $8.8 million of revenue for 2008. The Company's balance sheet as of December 31, 2009, showed $6.3 million in assets and $8.2 million of debts, for a stockholders' deficit of $1.9 million. KPMG LLP, in Boston expreesed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that of the Company's recurring losses from operations and accumulated deficit of $348.0 million as of December 31, 2009. A full-text copy of the annual report is available for free at: http://researcharchives.com/t/s?5a65 Lee, Mass. Wave Systems Corp. (NASDAQ: WAVX) -- http://www.wave.com/-- develops, produces and markets products for hardware-based digital security, including security applications and services that are complementary to and work with the specifications of the Trusted Computing Group, an industry standards organization comprised of computer and device manufacturers, software vendors and other computing products manufacturers. WEBDIGS INC: Posts $319,668 Net Loss in Q1 Ended January 31 ----------------------------------------------------------- Webdigs, Inc., filed its quarterly report on Form 10-Q, showing a net loss of $319,668 on $91,517 of revenue for the three months ended January 31, 2010, compared with a net loss of $326,213 on $38,627 of revenue for the same period of 2009. The Company's balance sheet as of January 31, 2010, showed $2,085,806 in assets, $1,373,767 of debts, and $712,039 of stockholders' equity. "The Company has incurred significant operating losses for the three month periods ended January 31, 2010 and 2009. At January 31, 2010, the Company reports a negative working capital position of $1,286,400, and an accumulated deficit of $4,097,431. It is management's opinion that these facts raise substantial doubt about the Company's ability to continue as a going concern without additional debt or equity financing." A full-text copy of the quarterly report is available for free at: http://researcharchives.com/t/s?5b2d Based in Minneapolis, Minnesota, Webdigs, Inc. (OTC BB: WBDG) is a web-assisted, full service real estate company that offers innovative services to home buyers and sellers via two primary brands: Webdigs.com and IggysHouse.com. With Webdigs.com the Company shares with each buyer up to one-half (50%) of the commission it receives from the seller or listing broker, with a minimum fee of $3,000 per transaction to the Company. The Company also offers discounted listing services to customers wishing to sell their homes. In January 2010, the Company launched IggysHouse.com, an online website that offers consumers an opportunity to have their home listed on the real estate multiple listing service (MLS) in their area and on the IggysHouse.com Web site completely free for 30 days. The Company has been operating since July 2007 in the Twin-Cities (Minneapolis-St. Paul and western Wisconsin) metropolitan area and since November 2007 in south Florida. WESTERN REFINING: Bank Debt Trades at 6% Off in Secondary Market ---------------------------------------------------------------- Participations in a syndicated loan under which Western Refining, Inc., is a borrower traded in the secondary market at 93.71 cents- on-the-dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 1.75 percentage points from the previous week, The Journal relates. The Company pays 600 basis points above LIBOR to borrow under the facility. The bank loan matures on May 30, 2013, and carries Moody's B3 rating and Standard & Poor's B+ rating. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Western Refining, Inc., headquartered in El Paso, Texas, is an independent refining and marketing company. Western owns and operates a 128,000-barrel per day low complexity light sweet refinery at El Paso, Texas, a medium sized relatively complex coking refinery at Yorktown, Virginia, and two very small light sweet crude oil refineries in the Four Corners region of New Mexico. WHOLESALE PROPERTIES: Sec. 341(a) Meeting Scheduled for April 12 ---------------------------------------------------------------- The U.S. Trustee for Region 6 will convene a meeting of creditors in Wholesale Properties II, LLC's Chapter 11 case on April 12, 2010, at 2:30 p.m. The meeting will be held at Office of the U.S. Trustee, 1100 Commerce Street, Room 976, Dallas, TX 75242. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Waxihachie, Texas-based Wholesale Properties II, LLC, filed for Chapter 11 bankruptcy protection on March 12, 2010 (Bankr. N.D. Texas Case No. 10-31790). Mark Joseph Petrocchi, Esq., at Griffith, Jay & Michel, LLP, assists the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $1,000,001 to $10,000,000 in liabilities. WHOLESALE PROPERTIES: Taps Griffith Jay as Bankruptcy Counsel ------------------------------------------------------------- Wholesale Properties I, LLC, and Wholesale Properties II, LLC, have asked for authorization from the U.S. Bankruptcy Court for the Northern District of Texas to employ Griffith, Jay & Michel, LLP, as bankruptcy counsel. GJM will, among other things: a. advise the Debtors generally with respect to general and restructuring matters; b. represent and advise the Debtors with respect to matters that generally arise in this matter or an ordinary Chapter 11 case; c. assist the Debtors and their professionals with the protection and preservation of the estate of the Debtors; and d. assist the Debtors and their professionals with preparing motions, applications, answers, orders, reports, and papers in connection with and required for the orderly administration of the estate. GJM will be paid based on the hourly rates of its personnel: Mark J. Petrocchi $295 Attorneys $150-$350 Mark J. Petrocchi at GJM, assures the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Waxihachie, Texas-based Wholesale Properties II, LLC, filed for Chapter 11 bankruptcy protection on March 12, 2010 (Bankr. N.D. Texas Case No. 10-31790). Mark Joseph Petrocchi, Esq., at Griffith, Jay & Michel, LLP, assists the Company in its restructuring effort. The Company listed $10,000,001 to $50,000,000 in assets and $1,000,001 to $10,000,000 in liabilities. The Debtor's affiliate, Wholesale Properties I, LLC, filed for bankruptcy on March 12, 2010 (Case No. 10-31787), estimating its assets and debts at $1 million to $10 million. YANKEE CANDLE: Bank Debt Trades at 3% Off in Secondary Market ------------------------------------------------------------- Participations in a syndicated loan under which The Yankee Candle Company, Inc., is a borrower traded in the secondary market at 97.07 cents-on-the-dollar during the week ended Friday, March 19, 2010, according to data compiled by Loan Pricing Corp. and reported in The Wall Street Journal. This represents an increase of 0.68 percentage points from the previous week, The Journal relates. The Company pays 200 basis points above LIBOR to borrow under the facility. The bank loan matures on Feb. 6, 2014, and carries Moody's Ba3 rating and Standard & Poor's BB- rating. The debt is one of the biggest gainers and losers among 195 widely quoted syndicated loans with five or more bids in secondary trading for the week ended Friday. Based in South Deerfield, Massachusetts, The Yankee Candle Company, Inc., designs, manufactures, and is a wholesaler and retailer of premium scented candles. Yankee has a 39-year history of offering distinctive products and marketing them as affordable luxuries and consumable gifts. The Company sells its products through a North American wholesale customer network of 19,689 store locations, a growing base of Company owned and operated retail stores (491 located in 43 states as of Jan. 3, 2009, including 28 Illuminations stores), direct mail catalogs, and its Internet Web sites: http://www.yankeecandle.com http://www.illuminations.com http://www.aromanaturals.com Outside of North America, the Company sells its products primarily through its subsidiary, Yankee Candle Company (Europe), Ltd., which has an international wholesale customer network of 2,994 store locations and distributors covering approximately 23 countries. Yankee Holding Corp. is a holding company formed in connection with the Company's Merger with an affiliate of Madison Dearborn Partners, LLC, on Feb. 6, 2007, and is now the parent company of The Yankee Candle Company, Inc. Yankee Holding Corp. and subsidiaries had $1.372 billion in total assets, and $1.375 billion in total liabilities, resulting in $2.82 million in stockholders' deficit as of Jan. 3, 2009. YRC WORLDWIDE: Reports Improving First Quarter Shipment Trends -------------------------------------------------------------- YRC Worldwide Inc. last week reported improving first quarter shipment trends for its YRC National Transportation and YRC Regional Transportation segments. Shipment volumes in the latter part of December and early January were impacted by the extensions to our note exchange. YRC said severe winter weather during January and February further hindered shipment growth and impacted costs and productivity. However, shipment growth in March, month to date, is at levels which exceed normal seasonal patterns, as total shipments per work day for both YRC National and YRC Regional increased 10% compared to the same period in February. KPMG LLP, in Kansas City, Missouri, expressed substantial doubt about YRC Worldwide's ability to continue as a going concern in its report on the Company's consolidated financial statements as of and for the year ended December 31, 2009. The independent auditors noted that the Company has experienced significant declines in operations, cash flows, and liquidity. The Company's balance sheet as of Dec. 31, 2009, showed $3.032 billion in assets, $2.865 billion and of debts, and $167.2 million of stockholders' equity. Overland Park, Kansas-based YRC Worldwide Inc., one of the largest transportation service providers in the world, is a holding company that through wholly owned operating subsidiaries offers a wide range of transportation services. These services include global, national and regional transportation as well as logistics. * * * According to the Troubled Company Reporter on Feb. 26, 2010, Fitch Ratings has assigned a rating of 'C/RR6' to YRC Worldwide's new 6% senior unsecured convertible notes due 2014. The first tranche of new notes, totaling $49.8 million, was issued on Feb. 23, 2010. Proceeds from this tranche will be used to repay the $45 million in remaining outstanding principal on YRC Regional Transportation Inc.'s 8.5% senior secured notes (known as the USF notes). As reported by the TCR on January 14, 2010, Standard & Poor's Ratings Services raised its corporate credit rating on YRC Worldwide to 'CCC-' from 'SD' (selective default). At the same time, S&P raised the senior unsecured issue-level ratings to 'CC' from 'D' on the company's remaining notes that were subject to the exchange offer, as well as a '6' recovery rating, indicating negligible (0%-10%) recovery of principal in a payment default scenario. The company has issued a combination of common and preferred equity in exchange for the existing notes. * 2010 Bank Failures Now 37 after Advanta, 6 Others Closed ---------------------------------------------------------- Regulators closed three seven -- State Bank of Aurora, Aurora, MN; First Lowndes Bank, Fort Deposit, AL; Bank of Hiawassee, Hiawassee, GA; Appalachian Community Bank, Ellijay, GA; Advanta Bank Corp., Draper, UT; Century Security Bank, Duluth, GA; American National Bank, Parma, OH -- on March 19, raising the total closings for this year to 37. The Federal Deposit Insurance Corporation was appointed receiver for the banks. The FDIC was unable to find another financial institution to take over the banking operations of Advanta Bank Corp. The FDIC was able to find banks who are assuming the deposits and taking over operations of the other banks closed last Friday. In accordance with Federal law, allowed claims against failed financial institutions will be paid, after administrative expenses, in this order of priority: 1. Depositors 2. General Unsecured Creditors 3. Subordinated Debt 4. Stockholders 2010 Failed Banks List The FDIC was appointed as receiver for the closed banks. To protect the depositors, the FDIC entered into a purchase and assumption agreement with various banks that agreed to assume the deposits of most of the closed banks. The FDIC also entered into loss-share transactions on assets bought by the banks. For this year, the failed banks are: Loss-Share Transaction Party FDIC Cost Assets of Bank That Assumed to Insurance Closed Bank Deposits & Bought Fund Closed Bank (millions) Certain Assets (millions) ----------- ---------- -------------- ----------- State Bank of Aurora $28.2 Northern State Bank $4.2 First Lowndes Bank $137.2 First Citizens Bank $38.3 Bank of Hiawassee $377.8 Citizens South Bank $137.7 Appalachian Community $1,010.0 Community & Southern $419.3 Advanta Bank Corp. $1,600.0 - None - $635.6 Century Security $96.5 Bank of Upson $29.9 American National $70.3 National Bank and Trust $17.1 The Park Avenue Bank $520.1 Valley National Bank $50.7 Statewide Bank $243.2 Home Bank, Lafayette $38.1 Old Southern Bank $315.6 Centennial Bank $94.6 LibertyPointe Bank $209.7 Valley National $24.8 Sun American Bank $535.7 First-Citizens Bank $103.8 Waterfield Bank $155.6 {FDIC Created} $51.0 Centennial Bank $215.2 Zions Bank $96.3 Bank of Illinois $211.7 Heartland Bank $53.7 Rainier Pacific Bank $446.2 Umpqua Bank, Roseburg $95.2 Carson River Community $51.1 Heritage Bank of Nevada $7.9 George Washington $412.8 FirstMerit Bank $141.4 La Jolla Bank $3,600.0 OneWest Bank, FSB $882.3 The La Coste Nat'l $53.9 Community National $3.7 Marco Community Bank $119.6 Omaha Bank $38.1 1st American State $18.2 Community Development $3.1 First National Bank $832.6 Community & Southern $260.4 Florida Community $875.5 Premier American Bank $352.6 American Marine Bank $373.2 Columbia State Bank $58.9 Marshall Bank, N.A. $59.9 United Valley Bank $4.1 First Regional Bank $2,180.0 First-Citizens Bank $825.5 Comm. Bank & Trust $1,210.0 SCBT, N.A. $354.5 Charter Bank $1,200.0 Charter, Albuquerque $201.9 Evergreen Bank $488.5 Umpqua Bank, Roseburg $64.2 Columbia River Bank $1,100.0 Columbia State Bank $172.5 Bank of Leeton $20.1 Sunflower Bank $8.1 Premier American Bank $350.9 Bond Street subsidiary $85.0 Town Community $69.6 Bank First American $17.8 St. Stephen State $24.7 First State Bank $7.2 Barnes Banking $827.8 {DINB Created} $271.3 Horizon Bank $1,400.0 Washington Federal $539.1 In 2009, there were 140 failed banks, compared with just 25 for 2008. A complete list of banks that failed since 2000 is available at: http://www.fdic.gov/bank/individual/failed/banklist.html 702 Banks on Problem List In its quarterly banking profile, the Federal Deposit Insurance Corp. said that the number of institutions on its "Problem List" rose to 702 at the end of 2009, from 552 at the end of the third quarter and 252 at the end of 2008. The FDIC, in its February 23 report, said that total assets of "problem" institutions were $402.8 billion at yearend 2009, compared with $345.9 billion at the end of September and $159.0 billion at the end of 2008. Both the number and assets of "problem" institutions are at the highest level since June 30, 1993. The Deposit Insurance Fund (DIF) decreased by $12.6 billion during the fourth quarter to a negative $20.9 billion (unaudited) primarily because of $17.8 billion in additional provisions for bank failures. Also, unrealized losses on available-for-sale securities combined with operating expenses reduced the fund by $692 million. Accrued assessment income added $3.1 billion to the fund during the quarter, and interest earned, combined with termination fees on loss share guarantees and surcharges from the Temporary Liquidity Guarantee Program added $2.8 billion. For the year, the fund balance shrank by $38.1 billion, compared to a $35.1 billion decrease in 2008. The DIF's reserve ratio was negative 0.39% on December 31, 2009, down from negative 0.16% on September 30, 2009, and 0.36% a year ago. The December 31, 2009, reserve ratio is the lowest reserve ratio for a combined bank and thrift insurance fund on record. Forty-five insured institutions with combined assets of $65.0 billion failed during the fourth quarter of 2009, at an estimated cost of $10.2 billion. For all of 2009, 140 FDIC- insured institutions with assets of $169.7 billion failed, at an estimated cost of $37.4 billion. This was the largest number of failures since 1990 when 168 institutions with combined assets of $16.9 billion failed. On November 12, 2009, the FDIC adopted a final rule amending the assessment regulations to require insured depository institutions to prepay their quarterly risk-based assessments for the fourth quarter of 2009 and for all of 2010, 2011, and 2012 on December 30, 2009, along with each institution's risk-based assessment for the third quarter of 2009. The FDIC is asking banks to prepay three years of premiums on Dec. 30 to raise $45 billion for the fund. "Problem" institutions are those institutions with financial, operational, or managerial weaknesses that threaten their continued financial viability. They are rated by the FDIC or Office of the Thrift Supervision as either a "4" or "5", based on a scale of 1 to 5 in ascending order of supervisory concern. The Problem List is not divulged to the public. No advance notice is given to the public when a financial institution is closed. Problem Institutions Failed Institutions -------------------- ------------------- Year Number Assets (Mil) Number Assets (Mil) ---- ------ ------------ ------ ------------ 2009 702 $402,800 140 $169,700 2008 252 $159,405 25 $371,945 2007 76 $22,189 3 $2,615 2006 50 $8,265 0 $0 2005 52 $6,607 0 $0 2004 80 $28,250 4 $170 A copy of the FDIC's Quarterly Banking Profile for the quarter ended Dec. 31, 2009, is available for free at: http://bankrupt.com/misc/FDIC_QBP_Q4_09.pdf More Insurance Premiums U.S. lenders will face higher deposit-insurance premiums "for many years to come" as the industry recovers from bank failures caused by the financial crisis, Comptroller of the Currency John Dugan said March 19. "These are huge numbers," Dugan said in comments prepared for a bankers conference, referring to shutdowns that have depleted the Federal Deposit Insurance Corp.'s insurance fund. * Junk Bonds Selling at Briskest Pace Since 2007 ------------------------------------------------ John Glover and Bryan Keogh at Bloomberg News report that companies are selling high-yield, high-risk bonds at the fastest pace since credit markets seized up in 2007 as investors pour record amounts into the securities amid signs the economic recovery is gaining momentum. Renault SA, the second-largest French automaker, Pittsburgh-based U.S. Steel Corp. and other speculative-grade borrowers issued $24.2 billion of high-yield notes in March through last week, putting this month on course to be the busiest since June 2007, according to data compiled by Bloomberg. According to the Bloomberg report, issuance of non-investment grade bonds is running at the highest since companies sold $34 billion of the debt in June 2007, after slowing last month amid concern that sovereign budget deficits would stifle growth. The securities are rated lower than BBB- by Standard & Poor's and Baa3 by Moody's Investors Service. * Senate Eyes Expanded Ch. 12 for Small Businesses -------------------------------------------------- Bankruptcy Law360 reports that the Senate Judiciary Committee is weighing a proposal to amend the Bankruptcy Code to allow more small businesses to opt for Chapter 12 rather than Chapter 11 filings, in order to pare down the economic havoc some experts say is wreaked on small companies by the Chapter 11 process. * BOND PRICING -- For the Week From March 15 to 19, 2010 -------------------------------------------------------- Company Coupon Maturity Bid Price ------- ------ -------- --------- 155 E TROPICANA 8.750% 4/1/2012 2.000 ACARS-GM 8.100% 6/15/2024 17.500 ADVANTA CAP TR 8.990% 12/17/2026 13.125 ALERIS INTL INC 9.000% 12/15/2014 0.500 AMBAC INC 9.375% 8/1/2011 55.600 ARCO CHEMICAL CO 10.250% 11/1/2010 82.750 BALLY TOTAL FITN 14.000% 10/1/2013 1.000 BANK NEW ENGLAND 8.750% 4/1/1999 12.500 BANK NEW ENGLAND 9.875% 9/15/1999 9.000 BANK UNITED 8.000% 3/15/2009 0.900 BLOCKBUSTER INC 9.000% 9/1/2012 21.336 BOWATER INC 6.500% 6/15/2013 36.000 BOWATER INC 9.500% 10/15/2012 32.900 CAPMARK FINL GRP 5.875% 5/10/2012 30.750 CENTERPLATE INC 13.500% 12/10/2013 1.500 CHANDLER USA INC 8.750% 7/16/2014 20.000 CMP SUSQUEHANNA 9.875% 5/15/2014 37.000 COLLINS & AIKMAN 10.750% 12/31/2011 0.030 COLONIAL BANK 6.375% 12/1/2015 0.438 FAIRPOINT COMMUN 13.125% 4/1/2018 13.875 FAIRPOINT COMMUN 13.125% 4/2/2018 16.250 FEDDERS NORTH AM 9.875% 3/1/2014 0.977 FINLAY FINE JWLY 8.375% 6/1/2012 0.500 GENERAL MOTORS 7.125% 7/15/2013 32.500 GENERAL MOTORS 9.450% 11/1/2011 26.000 HAWAIIAN TELCOM 9.750% 5/1/2013 3.000 HERBST GAMING 7.000% 11/15/2014 0.500 HERBST GAMING 8.125% 6/1/2012 0.500 INDALEX HOLD 11.500% 2/1/2014 1.050 INN OF THE MOUNT 12.000% 11/15/2010 47.000 KEYSTONE AUTO OP 9.750% 11/1/2013 40.250 LEHMAN BROS HLDG 4.375% 11/30/2010 22.500 LEHMAN BROS HLDG 4.500% 8/3/2011 16.770 LEHMAN BROS HLDG 4.700% 3/6/2013 18.750 LEHMAN BROS HLDG 4.800% 2/27/2013 21.500 LEHMAN BROS HLDG 4.800% 3/13/2014 23.125 LEHMAN BROS HLDG 5.000% 1/14/2011 23.300 LEHMAN BROS HLDG 5.000% 1/22/2013 21.500 LEHMAN BROS HLDG 5.000% 2/11/2013 21.500 LEHMAN BROS HLDG 5.000% 3/27/2013 21.500 LEHMAN BROS HLDG 5.000% 8/3/2014 17.780 LEHMAN BROS HLDG 5.000% 8/5/2015 22.000 LEHMAN BROS HLDG 5.100% 1/28/2013 18.454 LEHMAN BROS HLDG 5.150% 2/4/2015 21.500 LEHMAN BROS HLDG 5.250% 2/6/2012 23.020 LEHMAN BROS HLDG 5.250% 1/30/2014 18.000 LEHMAN BROS HLDG 5.250% 2/11/2015 21.500 LEHMAN BROS HLDG 5.500% 4/4/2016 20.010 LEHMAN BROS HLDG 5.625% 1/24/2013 23.500 LEHMAN BROS HLDG 5.750% 4/25/2011 22.750 LEHMAN BROS HLDG 5.750% 7/18/2011 22.125 LEHMAN BROS HLDG 5.750% 5/17/2013 22.680 LEHMAN BROS HLDG 6.000% 4/1/2011 17.250 LEHMAN BROS HLDG 6.000% 7/19/2012 23.000 LEHMAN BROS HLDG 6.000% 6/26/2015 18.250 LEHMAN BROS HLDG 6.000% 12/18/2015 21.500 LEHMAN BROS HLDG 6.200% 9/26/2014 23.000 LEHMAN BROS HLDG 6.500% 7/19/2017 0.250 LEHMAN BROS HLDG 6.625% 1/18/2012 23.000 LEHMAN BROS HLDG 6.750% 12/28/2017 0.700 LEHMAN BROS HLDG 6.875% 5/2/2018 23.500 LEHMAN BROS HLDG 6.875% 7/17/2037 0.250 LEHMAN BROS HLDG 7.000% 4/16/2019 20.550 LEHMAN BROS HLDG 7.500% 5/11/2038 0.500 LEHMAN BROS HLDG 7.875% 8/15/2010 23.000 LEHMAN BROS HLDG 8.000% 3/17/2023 16.000 LEHMAN BROS HLDG 8.050% 1/15/2019 21.500 LEHMAN BROS HLDG 8.500% 8/1/2015 22.500 LEHMAN BROS HLDG 8.750% 12/21/2021 21.150 LEHMAN BROS HLDG 8.750% 2/6/2023 17.625 LEHMAN BROS HLDG 8.800% 3/1/2015 22.000 LEHMAN BROS HLDG 8.920% 2/16/2017 19.000 LEHMAN BROS HLDG 9.000% 3/7/2023 18.250 LEHMAN BROS HLDG 9.500% 12/28/2022 21.500 LEHMAN BROS HLDG 9.500% 1/30/2023 21.000 LEHMAN BROS HLDG 9.500% 2/27/2023 21.500 LEHMAN BROS HLDG 10.000% 3/13/2023 21.500 LEHMAN BROS HLDG 10.375% 5/24/2024 16.000 LEHMAN BROS HLDG 11.000% 6/22/2022 18.375 LEHMAN BROS HLDG 11.500% 9/26/2022 18.125 LEINER HEALTH 11.000% 6/1/2012 9.500 MAJESTIC STAR 9.500% 10/15/2010 76.000 MAJESTIC STAR 9.750% 1/15/2011 15.750 MERRILL LYNCH 4.080% 3/9/2011 99.250 METALDYNE CORP 10.000% 11/1/2013 10.000 METALDYNE CORP 11.000% 6/15/2012 1.000 NEFF CORP 10.000% 6/1/2015 10.000 NEWPAGE CORP 12.000% 5/1/2013 37.100 NORTH ATL TRADNG 9.250% 3/1/2012 43.500 RAFAELLA APPAREL 11.250% 6/15/2011 49.750 RJ TOWER CORP 12.000% 6/1/2013 1.000 ROTECH HEALTHCA 9.500% 4/1/2012 60.000 SILVERLEAF RES 8.000% 4/1/2010 91.600 SIX FLAGS INC 9.625% 6/1/2014 36.500 SIX FLAGS INC 9.750% 4/15/2013 36.000 SPHERIS INC 11.000% 12/15/2012 15.500 STATION CASINOS 6.000% 4/1/2012 10.000 STATION CASINOS 6.500% 2/1/2014 3.500 STATION CASINOS 6.625% 3/15/2018 2.000 STATION CASINOS 6.875% 3/1/2016 1.500 STATION CASINOS 7.750% 8/15/2016 13.250 THORNBURG MTG 8.000% 5/15/2013 2.080 TIMES MIRROR CO 7.250% 3/1/2013 30.750 TOUSA INC 7.500% 3/15/2011 8.313 TOUSA INC 7.500% 1/15/2015 8.563 TOUSA INC 9.000% 7/1/2010 72.750 TOUSA INC 9.000% 7/1/2010 70.500 TOUSA INC 10.375% 7/1/2012 8.000 TRANSMERIDIAN EX 12.000% 12/15/2010 7.500 TRIBUNE CO 4.875% 8/15/2010 32.494 TRUMP ENTERTNMNT 8.500% 6/1/2015 1.000 VERASUN ENERGY 9.375% 6/1/2017 6.625 WASH MUT BANK FA 5.125% 1/15/2015 0.450 WASH MUT BANK FA 5.650% 8/15/2014 0.240 WASH MUT BANK NV 5.500% 1/15/2013 0.250 WASH MUT BANK NV 5.550% 6/16/2010 43.500 WASH MUT BANK NV 5.950% 5/20/2013 0.395 WCI COMMUNITIES 7.875% 10/1/2013 3.313 WCI COMMUNITIES 9.125% 5/1/2012 1.000 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed Chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. The Sunday TCR delivers securitization rating news from the week then-ending. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Marites Claro, Joy Agravante, Rousel Elaine Tumanda, Howard C. Tolentino, Joseph Medel C. Martirez, Denise Marie Varquez, Philline Reluya, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Sheryl Joy P. Olano, Carlo Fernandez, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2010. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***